EX-99.1 2 myfw-20251231xexx991.htm EX-99.1 Document

Exhibit 99.1
myfw-20221020xex99d1001a.jpg
First Western Reports Fourth Quarter 2025 Financial Results
Fourth Quarter 2025 Summary
•Net income available to common shareholders of $3.3 million in Q4 2025, compared to $3.2 million in Q3 2025
•Diluted earnings per share of $0.34 in Q4 2025, compared to $0.32 in Q3 2025
•Net interest margin increased 17 basis points from 2.54% in Q3 2025 to 2.71% in Q4 2025
•Net interest income increased $1.1 million, or 5.6%, from $19.5 million in Q3 2025 to $20.6 million in Q4 2025
•Total loans held for investment increased $59 million, or 2.3%, from $2.59 billion in Q3 2025 to $2.65 billion in Q4 2025

Denver, Colo., January 22, 2026 – First Western Financial, Inc. (“First Western” or the “Company”) (NASDAQ: MYFW), today reported financial results for the fourth quarter ended December 31, 2025.
Net income available to common shareholders was $3.3 million, or $0.34 per diluted share, for the fourth quarter of 2025. This compares to net income of $3.2 million, or $0.32 per diluted share, for the third quarter of 2025, and net income of $2.7 million, or $0.28 per diluted share, for the fourth quarter of 2024.
Scott C. Wylie, CEO of First Western, commented, “We executed well in the fourth quarter and saw positive trends in many areas including loan growth, an increase in Net interest income, well managed expenses, and generally stable asset quality, which resulted in an increase in our level of profitability. We continue to see healthy economic conditions across our markets resulting in a solid amount of loan demand that meets our disciplined underwriting and pricing criteria, while adding full banking relationships by getting new deposit accounts with the loans. Our improving financial performance and continued prudent balance sheet management resulted in increases in both our book value and tangible book value per share during the fourth quarter.
“Our loan pipeline remains strong and we expect to see solid loan growth going forward, along with a continuation of the positive trends we are seeing in key areas, which we believe will result in another year of improved financial performance and value creation for our shareholders in 2026,” said Mr. Wylie.


For the Three Months Ended
December 31,September 30,December 31,
(Dollars in thousands, except per share data)202520252024
Earnings Summary  
Net interest income$20,577 $19,454 $16,908 
Provision for (release of) of credit losses915 2,257 (974)
Total non-interest income6,079 6,842 6,459 
Total non-interest expense21,306 20,074 20,427 
Income before income taxes4,435 3,965 3,914 
Income tax expense
1,121 779 1,166 
Net income available to common shareholders3,314 3,186 2,748 
Basic earnings per common share0.34 0.33 0.28 
Diluted earnings per common share0.34 0.32 0.28 
Return on average assets (annualized)0.42 %0.40 %0.38 %
Return on average shareholders' equity (annualized)5.06 4.92 4.39 
Return on tangible common equity (annualized)(1)
5.66 5.54 4.98 
Net interest margin2.71 2.54 2.45 
Efficiency ratio(1)
74.88 76.38 80.74 
____________________
(1) Represents a Non-GAAP financial measure. See “Reconciliations of Non-GAAP Financial Measures” for a reconciliation of our Non-GAAP measures to the most directly comparable GAAP financial measure.
Operating Results for the Fourth Quarter 2025
Revenue
Total income before non-interest expense was $25.7 million for the fourth quarter of 2025, an increase of 7.1% from $24.0 million for the third quarter of 2025. Gross revenue(1) was $26.7 million for the fourth quarter of 2025, an increase of 1.5% from $26.3 million for the third quarter of 2025. Relative to the third quarter of 2025, the increase in Total income before non-interest expense was primarily driven by an increase in Net interest income and a decrease in Provision for credit losses, partially offset by a decrease in Non-interest income. Relative to the fourth quarter of 2024, Total income before non-interest expense increased 5.8% from $24.3 million and Gross revenue increased 12.2% from $23.8 million. Relative to the fourth quarter of 2024, the increase in Total income before non-interest expense was primarily driven by an increase in Net interest income, partially offset by an increase in Provision for credit losses and a decrease in Non-interest income.
(1) Represents a Non-GAAP financial measure. See “Reconciliations of Non-GAAP Financial Measures” for a reconciliation of our Non-GAAP measures to the most directly comparable GAAP financial measure.
Net Interest Margin
Net interest margin for the fourth quarter of 2025 increased 17 basis points to 2.71% from 2.54% reported in the third quarter of 2025, primarily due to a decrease in cost of funds, partially offset by a slight decrease in yield on interest-earning assets. The cost of funds decreased 20 basis points to 3.03% from 3.23% reported in the third quarter of 2025, while the yield on interest-earning assets decreased 3 basis points to 5.56% from 5.59% reported in the third quarter of 2025.
Relative to the fourth quarter of 2024, net interest margin increased 26 basis points from 2.45%, primarily due to a 21 basis point decrease in cost of funds and a 3 basis points increase in yield on interest-earning assets.
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Net Interest Income
Net interest income for the fourth quarter of 2025 was $20.6 million, an increase of 5.6% from $19.5 million for the third quarter of 2025. The increase quarter over quarter was primarily driven by a 17 basis point increase in net interest margin. Relative to the fourth quarter of 2024, Net interest income increased 21.9% from $16.9 million. The increase compared to the fourth quarter of 2024 was primarily driven by a 26 basis point increase in net interest margin and a $276 million, or 10.0%, increase in average interest-earning assets.
Non-interest Income
Non-interest income for the fourth quarter of 2025 was $6.1 million, a decrease of 10.3% from $6.8 million in the third quarter of 2025. The decrease was primarily driven by decreases in Net gain on mortgage loans and Risk management and insurance fees.
Relative to the fourth quarter of 2024, Non-interest income decreased $0.4 million, primarily driven by a decrease in Risk management and insurance fees, partially offset by an increase in Net gain on mortgage loans and a decrease in Net loss on loans held for sale.
Non-interest Expense
Non-interest expense for the fourth quarter of 2025 was $21.3 million, an increase of 6.0% from $20.1 million in the third quarter of 2025. The increase was primarily driven by a $1.4 million Other real estate owned ("OREO") write-down and an increase in Professional services, partially offset by decreases in Occupancy and equipment and Salaries and employee benefits.
Relative to the fourth quarter of 2024, Non-interest expense increased 4.4% from $20.4 million, primarily driven by increases in Salaries and employee benefits, Professional Services, and Data processing, partially offset by a decrease in Occupancy and equipment.
The Company’s efficiency ratio(1) was 74.9% in the fourth quarter of 2025, compared with 76.4% in the third quarter of 2025 and 80.7% in the fourth quarter of 2024.
(1) Represents a Non-GAAP financial measure. See “Reconciliations of Non-GAAP Financial Measures” for a reconciliation of our Non-GAAP measures to the most directly comparable GAAP financial measure.
Income Taxes
The Company recorded Income tax expense of $1.1 million for the fourth quarter of 2025, compared to $0.8 million for the third quarter of 2025, and $1.2 million for the fourth quarter of 2024.
Loans
Total loans held for investment were $2.65 billion as of December 31, 2025, an increase of $59 million or 2.3% compared to September 30, 2025. Changes in the quarter included growth in the Non-owner occupied and Owner occupied commercial real estate portfolios, partially offset by a decrease in the Construction and development portfolio. Relative to the fourth quarter of 2024, total loans held for investment increased from $2.43 billion as of December 31, 2024, primarily driven by growth in the Non-owner occupied commercial real estate, 1-4 family residential, Cash, securities, and other, and Owner occupied commercial real estate portfolios, partially offset by a decrease in the Construction and development portfolio.
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Deposits
Total deposits were $2.75 billion as of December 31, 2025, a decrease of 3.5% from $2.85 billion as of September 30, 2025. The decrease was primarily driven by decreases in higher-cost money market deposit accounts and Noninterest-bearing deposit accounts primarily due to operating account fluctuations. Relative to the fourth quarter of 2024, Total deposits increased from $2.51 billion as of December 31, 2024, primarily driven by an increase in money market deposit accounts, partially offset by decreases in time deposit accounts and Noninterest-bearing deposit accounts.
Borrowings
Federal Home Loan Bank (“FHLB”) and Federal Reserve borrowings were a combined $62.8 million as of December 31, 2025, an increase of $11.9 million from $50.9 million as of September 30, 2025. The change when compared to September 30, 2025 was primarily driven by an increase in FHLB borrowings due to loan growth and a decrease in deposits during the quarter. Relative to the fourth quarter of 2024, borrowings increased $5.8 million from $57.0 million as of December 31, 2024. The increase in borrowings from December 31, 2024 was primarily driven by an increase in FHLB borrowings to support the interest-earning asset growth.
Subordinated notes were $44.8 million as of December 31, 2025, compared to $44.7 million as of September 30, 2025. Subordinated notes decreased $7.8 million from $52.6 million as of December 31, 2024. Relative to the fourth quarter of 2024, the decrease was primarily due to the redemption of $8.0 million of subordinated notes that became eligible to call in the first quarter of 2025.
Assets Under Management
Assets Under Management (“AUM”) was $7.28 billion as of December 31, 2025, a decrease of $155 million, or 2.1%, from $7.43 billion as of September 30, 2025. The decrease in AUM during the quarter was primarily attributable to net withdrawals. Compared to December 31, 2024, total AUM decreased 0.5% from $7.32 billion.
Credit Quality
Non-performing assets totaled $19.6 million, or 0.62% of Total assets, as of December 31, 2025, compared to $22.7 million, or 0.70% of Total assets, as of September 30, 2025. The decrease in non-performing assets during the quarter was primarily driven by a write-down of OREO, pay downs, and a charge-off. As of December 31, 2024, non-performing assets totaled $49.0 million, or 1.68% of Total assets. Relative to the fourth quarter of 2024, the decrease in non-performing assets was primarily driven by the sale of two OREO properties, a write-down of OREO, pay downs, and a charge-off, partially offset by additions to non-accrual loans. OREO totaled $3.0 million as of December 31, 2025, a decrease of $1.4 million from $4.4 million as of September 30, 2025 due to a write-down during the quarter. Relative to the fourth quarter of 2024, OREO decreased from $35.9 million as of December 31, 2024.
Non-accrual loans totaled $16.6 million as of December 31, 2025, a decrease of $1.7 million from $18.3 million as of September 30, 2025. As of December 31, 2024, non-accrual loans totaled $13.1 million. Relative to the third quarter of 2025, the decrease was primarily driven by pay downs and a charge-off. Relative to the fourth quarter of 2024, the increase was primarily driven by the addition of one credit relationship, partially offset by pay downs and a charge-off.
During the fourth quarter of 2025, the Company recorded provision expense of $0.9 million, compared to $2.3 million in the third quarter of 2025 and a provision release of $1.0 million in the fourth quarter of 2024. As of December 31, 2025 and September 30, 2025, the Allowance for credit losses as a percentage of Total loans was 81 basis points.
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Capital
As of December 31, 2025, First Western (“Consolidated”) and First Western Trust Bank (“Bank”) exceeded the minimum capital levels required by their respective regulators. As of December 31, 2025, the Bank was classified as “well capitalized,” as summarized in the following table:
December 31,
2025
Consolidated Capital
Tier 1 capital to risk-weighted assets9.75 %
Common Equity Tier 1 ("CET1") to risk-weighted assets9.75 
Total capital to risk-weighted assets12.34 
Tier 1 capital to average assets7.68 
Bank Capital
Tier 1 capital to risk-weighted assets11.15 %
CET1 to risk-weighted assets11.15 
Total capital to risk-weighted assets11.99 
Tier 1 capital to average assets8.79 
Book value per common share increased 1.4% from $26.92 as of September 30, 2025 to $27.30 as of December 31, 2025. Book value per common share increased 4.6% from $26.10 as of December 31, 2024.
Tangible book value per common share(1) increased 1.6% from $23.68 as of September 30, 2025, to $24.07 as of December 31, 2025. Tangible book value per common share increased 5.4% from $22.83 as of December 31, 2024.
(1) Represents a Non-GAAP financial measure. See “Reconciliations of Non-GAAP Financial Measures” for a reconciliation of our Non-GAAP measures to the most directly comparable GAAP financial measure.
Conference Call, Webcast and Slide Presentation
The Company will host a conference call and webcast at 10:00 a.m. MT/ 12:00 p.m. ET on Friday, January 23, 2026. Telephone access: https://register-conf.media-server.com/register/BI97c1bab5cd874d858746f83b76919a8d
A slide presentation relating to the fourth quarter 2025 results will be accessible prior to the scheduled conference call. The slide presentation and webcast of the conference call can be accessed on the Events and Presentations page of the Company’s investor relations website at https://myfw.gcs-web.com.
About First Western
First Western is a financial services holding company headquartered in Denver, Colorado, with operations in Colorado, Arizona, Wyoming, California, and Montana. First Western and its subsidiaries provide a fully integrated suite of wealth management services on a private trust bank platform, which includes a comprehensive selection of deposit, loan, trust, wealth planning and investment management products and services. First Western’s common stock is traded on the Nasdaq Global Select Market under the symbol “MYFW.” For more information, please visit www.myfw.com.
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Non-GAAP Financial Measures
Some of the financial measures included in this press release are not measures of financial performance recognized in accordance with generally accepted accounting principles in the United States (“GAAP”). These non-GAAP financial measures include “Tangible Common Equity,” “Tangible Common Book Value per Share,” “Return on Tangible Common Equity,” “Efficiency Ratio,” and “Gross Revenue”. The Company believes these non-GAAP financial measures provide both management and investors a more complete understanding of the Company’s financial position and performance. These non-GAAP financial measures are supplemental and are not a substitute for any analysis based on GAAP financial measures. Not all companies use the same calculation of these measures; therefore, this presentation may not be comparable to other similarly titled measures as presented by other companies. Reconciliation of non-GAAP financial measures to GAAP financial measures are provided at the end of this press release.
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Forward-Looking Statements
Statements in this news release regarding our expectations and beliefs about our future financial performance and financial condition, as well as trends in our business and markets are “forward-looking statements” as defined in the Private Securities Litigation Reform Act of 1995. Forward-looking statements often include words such as “believe,” “expect,” “anticipate,” “intend,” “plan,” “estimate,” “project,” “position,” “outlook,” or words of similar meaning, or future or conditional verbs such as “will,” “would,” “should,” “opportunity,” “could,” or “may.” The forward-looking statements in this news release are based on current information and on assumptions that we make about future events and circumstances that are subject to a number of risks and uncertainties that are often difficult to predict and beyond our control. As a result of those risks and uncertainties, our actual financial results in the future could differ, possibly materially, from those expressed in or implied by the forward-looking statements contained in this news release and could cause us to make changes to our future plans. Those risks and uncertainties include, without limitation, the risk of geographic concentration in Colorado, Arizona, Wyoming, California, and Montana; the risk of changes in the economy affecting real estate values and liquidity; the risk in our ability to continue to originate residential real estate loans and sell such loans; risks specific to commercial loans and borrowers; the risk of claims and litigation pertaining to our fiduciary responsibilities; the risk of changes in interest rates could reduce our net interest margins and Net interest income; increased credit risk, including as a result of deterioration in economic conditions, could require us to increase our allowance for credit losses and could have a material adverse effect on our results of operations and financial condition; the risk in our ability to maintain a strong core deposit base or other low-cost funding sources. Additional information regarding these and other risks and uncertainties to which our business and future financial performance are subject is contained in our Annual Report on Form 10-K filed with the U.S. Securities and Exchange Commission (“SEC”) on March 7, 2025 (“Form 10-K”), and other documents we file with the SEC from time to time. We urge readers of this news release to review the “Risk Factors” section our Form 10-K and any updates to those risk factors set forth in our subsequent Quarterly Reports on Form 10-Q, Current Reports on Form 8-K, and our other filings with the SEC. Also, our actual financial results in the future may differ from those currently expected due to additional risks and uncertainties of which we are not currently aware or which we do not currently view as, but in the future may become, material to our business or operating results. Due to these and other possible uncertainties and risks, readers are cautioned not to place undue reliance on the forward-looking statements contained in this news release, which speak only as of today’s date, or to make predictions based solely on historical financial performance. Any forward-looking statement speaks only as of the date on which it is made, and we do not undertake any obligation to update or review any forward-looking statement, whether as a result of new information, future developments or otherwise, except as required by law.
Contacts:
Financial Profiles, Inc.
Tony Rossi
310-622-8221
MYFW@finprofiles.com
IR@myfw.com
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First Western Financial, Inc.
Condensed Consolidated Statements of Income (unaudited)
Three Months Ended
December 31,September 30,December 31,
(dollars in thousands, except per share amounts)202520252024
Interest and dividend income:
Loans, including fees$38,563 $37,701 $34,264 
Loans accounted for under the fair value option51 64 118 
Investment securities
1,593 1,387 696 
Interest-bearing deposits in other financial institutions1,958 3,468 2,902 
Dividends, restricted stock139 154 129 
Total interest and dividend income42,304 42,774 38,109 
Interest expense:
Deposits20,560 22,177 19,921 
Other borrowed funds1,167 1,143 1,280 
Total interest expense21,727 23,320 21,201 
Net interest income20,577 19,454 16,908 
Less: Provision for (release of) of credit losses915 2,257 (974)
Net interest income, after provision for credit losses
19,662 17,197 17,882 
Non-interest income:
Trust and investment management fees4,634 4,629 4,660 
Net gain on mortgage loans795 1,394 377 
Net loss on loans held for sale— — (222)
Bank fees318 312 426 
Risk management and insurance fees52 193 1,139 
Income on company-owned life insurance117 116 112 
Net (loss) gain on loans accounted for under the fair value option(44)18 (149)
Unrealized (loss) gain recognized on equity securities(6)6 (49)
Other213 174 165 
Total non-interest income6,079 6,842 6,459 
Total income before non-interest expense25,741 24,039 24,341 
Non-interest expense:
Salaries and employee benefits11,735 11,884 11,237 
Occupancy and equipment1,710 2,084 2,100 
Professional services2,232 1,894 1,821 
Technology and information systems1,094 1,055 1,073 
Data processing1,251 1,251 1,029 
Marketing386 351 397 
Amortization of other intangible assets52 51 56 
Other2,846 1,504 2,714 
Total non-interest expense21,306 20,074 20,427 
Income before income taxes4,435 3,965 3,914 
Income tax expense
1,121 779 1,166 
Net income available to common shareholders$3,314 $3,186 $2,748 
Earnings per common share:
Basic$0.34 $0.33 $0.28 
Diluted0.34 0.32 0.28 
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First Western Financial, Inc.
Condensed Consolidated Balance Sheets (unaudited)
December 31,September 30,December 31,
(dollars in thousands)202520252024
Assets
Cash and cash equivalents:
Cash and due from banks$9,755 $13,889 $9,770 
Interest-bearing deposits in other financial institutions190,526 341,750 228,171 
Total cash and cash equivalents200,281 355,639 237,941 
Available-for-sale debt securities, at fair value (amortized cost of $45,623, $49,407, and $0, respectively)
45,607 49,177 — 
Held-to-maturity debt securities (fair value of $90,635, $93,589 and $68,161, respectively), net of allowance for credit losses of $74, $71, and $71, respectively
94,970 98,205 75,724 
Correspondent bank stock, at cost6,764 6,481 5,864 
Mortgage loans held for sale, at fair value40,176 21,806 25,455 
Loans held for sale, at fair value— — 251 
Loans (includes $3,182, $4,208, and $7,283 measured at fair value, respectively)
2,650,423 2,590,846 2,425,565 
Allowance for credit losses(21,441)(20,967)(18,330)
Loans, net2,628,982 2,569,879 2,407,235 
Premises and equipment, net25,687 24,963 24,129 
Accrued interest receivable11,209 11,907 10,364 
Accounts receivable4,579 4,687 4,763 
Other receivables2,444 3,736 5,710 
Other real estate owned, net3,040 4,389 35,929 
Goodwill and other intangible assets, net31,422 31,473 31,627 
Deferred tax assets, net4,003 3,500 3,079 
Company-owned life insurance17,416 17,299 16,961 
Other assets38,401 37,283 34,005 
Total assets$3,154,981 $3,240,424 $2,919,037 
Liabilities  
Deposits:   
Noninterest-bearing$344,969 $375,708 $375,603 
Interest-bearing2,401,606 2,473,203 2,138,606 
Total deposits2,746,575 2,848,911 2,514,209 
Borrowings:   
Federal Home Loan Bank and Federal Reserve borrowings62,841 50,867 57,038 
Subordinated notes44,772 44,724 52,565 
Accrued interest payable1,295 1,689 1,995 
Other liabilities33,938 32,738 40,908 
Total liabilities2,889,421 2,978,929 2,666,715 
Shareholders’ Equity   
Total shareholders’ equity265,560 261,495 252,322 
Total liabilities and shareholders’ equity$3,154,981 $3,240,424 $2,919,037 
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First Western Financial, Inc.
Consolidated Financial Summary (unaudited)
December 31,September 30,December 31,
(dollars in thousands)202520252024
Loan Portfolio
Cash, securities, and other$164,787 $159,204 $120,005 
Consumer and other19,504 12,254 17,333 
Construction and development189,790 230,600 315,686 
1-4 family residential1,030,211 1,041,075 960,354 
Non-owner occupied CRE813,408 728,039 614,384 
Owner occupied CRE205,063 191,239 173,223 
Commercial and industrial226,107 225,919 220,501 
Total 2,648,870 2,588,330 2,421,486 
Loans accounted for under the fair value option3,216 4,319 7,508 
Total loans held for investment2,652,086 2,592,649 2,428,994 
Deferred fees, unamortized premiums, basis adjustments, net(1)(2)
(1,663)(1,803)(3,429)
Loans (includes $3,182, $4,208, and $7,283 measured at fair value, respectively)
$2,650,423 $2,590,846 $2,425,565 
Mortgage loans held for sale40,176 21,806 25,455 
Loans held for sale— — 251 
Deposit Portfolio
Money market deposit accounts$1,913,591 $1,988,336 $1,513,605 
Time deposits352,473 349,533 471,415 
Interest checking accounts122,292 121,901 139,374 
Savings accounts13,250 13,433 14,212 
Total interest-bearing deposits2,401,606 2,473,203 2,138,606 
Noninterest-bearing accounts344,969 375,708 375,603 
Total deposits$2,746,575 $2,848,911 $2,514,209 
____________________
(1) Includes fair value adjustments on loans held for investment accounted for under the fair value option.
(2) Includes basis adjustments related to the hedged portfolio accounted for under the portfolio layer method.

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First Western Financial, Inc.
Consolidated Financial Summary (unaudited) (continued)
As of or for the Three Months Ended
December 31,September 30,December 31,
(dollars in thousands)202520252024
Average Balance Sheets
Assets
Interest-earning assets:
Interest-bearing deposits in other financial institutions$192,052 $307,979 $238,052 
Debt securities143,593 127,154 77,464 
Correspondent bank stock6,342 7,500 5,738 
Gross loans
2,630,739 2,562,960 2,386,070 
Mortgage loans held for sale41,068 26,037 26,623 
Loans held at fair value3,799 4,809 8,136 
Total interest-earning assets3,017,593 3,036,439 2,742,083 
Noninterest-earning assets123,497 124,457 159,883 
Total assets$3,141,090 $3,160,896 $2,901,966 
Liabilities and Shareholders’ Equity
Interest-bearing liabilities:
Interest-bearing deposits$2,387,894 $2,422,177 $2,095,204 
FHLB and Federal Reserve borrowings50,799 51,065 54,428 
Subordinated notes44,742 44,690 52,528 
Total interest-bearing liabilities2,483,435 2,517,932 2,202,160 
Noninterest-bearing liabilities:  
Noninterest-bearing deposits359,223 349,839 403,433 
Other liabilities36,415 34,072 45,889 
Total noninterest-bearing liabilities395,638 383,911 449,322 
Total shareholders’ equity262,017 259,053 250,484 
Total liabilities and shareholders’ equity$3,141,090 $3,160,896 $2,901,966 
Yields/Cost of funds (annualized)
Interest-bearing deposits in other financial institutions4.04 %4.47 %4.85 %
Debt securities4.40 4.33 3.57 
Correspondent bank stock8.70 8.15 8.94 
Loans5.72 5.78 5.65 
Loan held at fair value5.33 5.28 5.77 
Mortgage loans held for sale5.94 5.59 6.02 
Total interest-earning assets5.56 5.59 5.53 
Interest-bearing deposits3.42 3.63 3.78 
Total deposits2.97 3.17 3.17 
FHLB and Federal Reserve borrowings3.99 3.98 3.96 
Subordinated notes5.82 5.60 5.59 
Total interest-bearing liabilities3.47 3.67 3.83 
Net interest margin2.71 2.54 2.45 
Net interest rate spread2.09 1.92 1.70 
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First Western Financial, Inc.
Consolidated Financial Summary (unaudited) (continued)
As of or for the Three Months Ended
December 31,September 30,December 31,
(dollars in thousands, except share and per share amounts)202520252024
Asset Quality
Non-accrual loans$16,588 $18,293 $13,052 
Non-performing assets19,628 22,682 48,981 
Net charge-offs (recoveries)401 259 (270)
Non-accrual loans to total loans0.63 %0.71 %0.54 %
Non-performing assets to total assets0.62 0.70 1.68 
Allowance for credit losses to non-accrual loans129.26 114.62 140.44 
Allowance for credit losses to total loans0.81 0.81 0.76 
Net charge-offs (recoveries) to average loans0.02 0.01 (0.01)
Assets Under Management$7,278,241 $7,433,029 $7,321,147 
Market Data
Book value per share at period end$27.30 $26.92 $26.10 
Tangible book value per common share(1)
$24.07 $23.68 $22.83 
Weighted average outstanding shares, basic9,719,812 9,717,571 9,665,621 
Weighted average outstanding shares, diluted9,849,323 9,868,742 9,794,797 
Shares outstanding at period end9,725,731 9,714,711 9,667,142 
Consolidated Capital
Tier 1 capital to risk-weighted assets9.75 %9.80 %10.07 %
CET1 to risk-weighted assets9.75 9.80 10.07 
Total capital to risk-weighted assets12.34 12.50 13.12 
Tier 1 capital to average assets7.68 7.51 7.88 
Bank Capital
Tier 1 capital to risk-weighted assets11.15 %11.20 %11.41 %
CET1 to risk-weighted assets11.15 11.20 11.41 
Total capital to risk-weighted assets11.99 12.04 12.10 
Tier 1 capital to average assets8.79 8.59 8.94 
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(1) Represents a Non-GAAP financial measure. See “Reconciliation of Non-GAAP Financial Measures” for a reconciliation of our Non-GAAP measures to the most directly comparable GAAP financial measure.
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First Western Financial, Inc.
Consolidated Financial Summary (unaudited) (continued)
Reconciliations of Non-GAAP Financial Measures
As of or for the Three Months Ended
December 31,September 30,December 31,
(dollars in thousands, except share and per share amounts)202520252024
Tangible Common
Total shareholders' equity$265,560 $261,495 $252,322 
Less: goodwill and other intangibles, net31,422 31,473 31,627 
Tangible common equity$234,138 $230,022 $220,695 
Common shares outstanding, end of period9,725,731 9,714,711 9,667,142 
Tangible common book value per share$24.07 $23.68 $22.83 
Net income available to common shareholders3,314 3,186 2,748 
Return on tangible common equity (annualized)5.66 %5.54 %4.98 %
Efficiency
Non-interest expense$21,306 $20,074 $20,427 
Less: OREO expenses and write-downs1,310 8 1,222 
Adjusted non-interest expense$19,996 $20,066 $19,205 
Total income before non-interest expense$25,741 $24,039 $24,341 
Less: unrealized (loss) gain recognized on equity securities(6)6 (49)
Less: net (loss) gain on loans accounted for under the fair value option(44)18 (149)
Less: net loss on loans held for sale— — (222)
Plus: provision for (release of) of credit losses915 2,257 (974)
Gross revenue$26,706 $26,272 $23,787 
Efficiency ratio74.88 %76.38 %80.74 %
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