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First Western Financial Inc
First Western Reports Second Quarter 2025 Financial Results
Business
Jul 24 2025
26 min read

First Western Reports Second Quarter 2025 Financial Results

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Second Quarter 2025 Summary

  • Total loans increased $115 million, or 4.7%, from $2.43 billion as of Q1 2025 to $2.54 billion as of Q2 2025

  • Net interest margin increased 6 basis points from 2.61% in Q1 2025 to 2.67% in Q2 2025

  • Net interest income increased $0.4 million from $17.5 million in Q1 2025 to $17.9 million in Q2 2025

  • Non-interest expense decreased $0.3 million from $19.4 million in Q1 2025 to $19.1 million in Q2 2025

  • Net income available to common shareholders of $2.5 million, or $0.26 per diluted share, in Q2 2025

DENVER, July 24, 2025 (GLOBE NEWSWIRE) -- First Western Financial, Inc. (“First Western” or the “Company”) (NASDAQ: MYFW), today reported financial results for the second quarter ended June 30, 2025.

Net income available to common shareholders was $2.5 million, or $0.26 per diluted share, for the second quarter of 2025. This compares to net income of $4.2 million, or $0.43 per diluted share, for the first quarter of 2025, and net income of $1.1 million, or $0.11 per diluted share, for the second quarter of 2024.

Scott C. Wylie, CEO of First Western, commented, “We executed well in the second quarter and saw positive trends in many areas including loan and deposit growth, an expansion in our net interest margin, well managed expenses, and stable asset quality. We were able to redeploy the cash from the sale of our two largest OREO properties into loan production and securities purchases, which positively impacted our net interest margin. While maintaining our disciplined underwriting and pricing criteria, we had a very strong quarter of loan production, which was well diversified across our markets and loan portfolios. Our strong loan production reflects the healthy economic conditions we continue to see across our markets, as well as the contribution of banking talent we have added over the past few years.

“Our loan and deposit pipelines remain healthy and we expect to see solid balance sheet growth over the second half of the year, along with continued expansion in our net interest margin while we continue to maintain tight expense control. We believe this will continue to result in solid financial performance for our shareholders as we move through the year,” said Mr. Wylie.

 

For the Three Months Ended

 

June 30,

 

March 31,

 

June 30,

(Dollars in thousands, except per share data)

 

2025

 

 

 

2025

 

 

 

2024

 

Earnings Summary

 

 

 

 

 

Net interest income

$

17,884

 

 

$

17,453

 

 

$

15,778

 

Provision for credit losses

 

1,773

 

 

 

80

 

 

 

2,334

 

Total non-interest income

 

6,305

 

 

 

7,345

 

 

 

6,972

 

Total non-interest expense

 

19,099

 

 

 

19,361

 

 

 

19,001

 

Income before income taxes

 

3,317

 

 

 

5,357

 

 

 

1,415

 

Income tax expense

 

814

 

 

 

1,172

 

 

 

339

 

Net income available to common shareholders

 

2,503

 

 

 

4,185

 

 

 

1,076

 

Basic earnings per common share

 

0.26

 

 

 

0.43

 

 

 

0.11

 

Diluted earnings per common share

 

0.26

 

 

 

0.43

 

 

 

0.11

 

 

 

 

 

 

 

Return on average assets (annualized)

 

0.36

%

 

 

0.59

%

 

 

0.15

%

Return on average shareholders' equity (annualized)

 

3.90

 

 

 

6.63

 

 

 

1.73

 

Return on tangible common equity (annualized)(1)

 

4.40

 

 

 

7.44

 

 

 

2.00

 

Net interest margin

 

2.67

 

 

 

2.61

 

 

 

2.35

 

Efficiency ratio(1)

 

78.83

 

 

 

79.16

 

 

 

82.25

 

____________________

(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 Second Quarter 2025

Revenue

Total income before non-interest expense was $22.4 million for the second quarter of 2025, a decrease of 9.3% from $24.7 million for the first quarter of 2025. Gross revenue(1) was $24.2 million for the second quarter of 2025, a decrease of 1.6% from $24.6 million for the first quarter of 2025. Relative to the first quarter of 2025, the decrease in total income before non-interest expense was primarily driven by an increase in the Provision for credit losses and decreases in Net gain on loans held for sale and Net gain on other real estate owned, partially offset by an increase in Net interest income. Relative to the second quarter of 2024, total income before non-interest expense increased 9.8% from $20.4 million and Gross revenue increased 4.8% from $23.1 million. Relative to the second quarter of 2024, the increase in total income before non-interest expense was primarily driven by an increase in Net interest income and decrease in the Provision for credit losses, partially offset by a decrease in Net gain on mortgage loans.

(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 second quarter of 2025 increased 6 basis points to 2.67% from 2.61% reported in the first quarter of 2025, primarily due to a decrease in cost of deposits and increase in interest-earning assets yield. The decrease in cost of deposits was primarily due to lower rates on time deposits and the increase in interest-earning assets yield was primarily due to an improved mix in average interest-earning asset balances.

The yield on interest-earning assets increased 4 basis points to 5.61% from 5.57% reported in the first quarter of 2025 and the cost of interest-bearing liabilities decreased 2 basis points to 3.63% from 3.65% reported in the first quarter of 2025.

Relative to the second quarter of 2024, net interest margin increased 32 basis points from 2.35%, primarily due to a 42 basis point decrease in total cost of funds as a result of the lower interest rate environment.

Net Interest Income

Net interest income for the second quarter of 2025 was $17.9 million, an increase of 2.3% from $17.5 million for the first quarter of 2025. The increase quarter over quarter was primarily driven by a 6 basis point increase in net interest margin, offset partially by a decline in average interest-earning assets. Relative to the second quarter of 2024, net interest income increased 13.3% from $15.8 million. The increase compared to the second quarter of 2024 was primarily driven by a 32 basis point increase in net interest margin, offset partially by a decline in average interest-earnings assets.

Non-interest Income

Non-interest income for the second quarter of 2025 was $6.3 million, a decrease of 13.7% from $7.3 million in the first quarter of 2025. The decrease was driven primarily by decreases in Net gain on other real estate owned, Net gain on loans held for sale, and Risk management and insurance fees, partially offset by an increase in Net gain on mortgage loans due to an increase in origination volume. The first quarter of 2025 included a Net gain on other real estate of $0.5 million due to the sale of our two largest OREO properties as well as a Net gain on loans held for sale of $0.2 million due to the reversal of a previous quarter's write-down on a non-performing loan.

Relative to the second quarter of 2024, non-interest income decreased $0.7 million, driven primarily by a decrease in Net gain on mortgage loans due to a decrease in origination volume.

Non-interest Expense

Non-interest expense for the second quarter of 2025 was $19.1 million, a decrease of 1.5% from $19.4 million in the first quarter of 2025. The decrease was primarily driven by a decrease in Salaries and employee benefits due to the seasonality of payroll taxes, partially offset by an increase in Professional services.

Relative to the second quarter of 2024, non-interest expense increased 0.5% from $19.0 million, driven primarily by an increase in Occupancy and equipment expenses, partially offset by a decrease in Salaries and employee benefits.

The Company’s efficiency ratio(1) was 78.8% in the second quarter of 2025, compared with 79.2% in the first quarter of 2025 and 82.3% in the second 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 $0.8 million for the second quarter of 2025, compared to $1.2 million for the first quarter of 2025, and $0.3 million for the second quarter of 2024.

Loans

Total loans held for investment were $2.54 billion as of June 30, 2025, an increase of $115 million or 4.7% compared to March 31, 2025. Changes in the quarter included net growth in the Cash, securities, and other and 1-4 family residential portfolios, partially offset by a net decrease in the Construction and development portfolio. Relative to the second quarter of 2024, total loans held for investment increased from $2.46 billion as of June 30, 2024, primarily driven by net growth in the 1-4 family residential and Non-owner occupied commercial real estate portfolios, partially offset by net decreases in the Construction and development and Commercial and industrial portfolios.

Deposits

Total deposits were $2.53 billion as of June 30, 2025, an increase of 0.4% from $2.52 billion as of March 31, 2025. Relative to the second quarter of 2024, total deposits increased from $2.41 billion as of June 30, 2024, driven primarily by an increase in Interest-bearing deposits.

Borrowings

Federal Home Loan Bank (“FHLB”) and Federal Reserve borrowings were a combined $163.4 million as of June 30, 2025, an increase of $111.8 million from $51.6 million as of March 31, 2025. The change when compared to March 31, 2025 was primarily driven by net draws on the Company's FHLB line of credit as a result of interest-earning asset growth during the quarter. Relative to the second quarter of 2024, borrowings decreased $28.1 million from $191.5 million as of June 30, 2024. The decrease in borrowings from June 30, 2024 was primarily driven by Bank Term Funding Program ("BTFP") payoffs and net pay downs on the Company's FHLB line of credit as a result of deposit growth.

Subordinated notes were $44.7 million as of June 30, 2025, compared to $44.6 million as of March 31, 2025. Subordinated notes decreased $7.8 million from $52.5 million as of June 30, 2024. Relative to the second 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 $7.50 billion as of June 30, 2025, an increase of $320 million, or 4.5%, from $7.18 billion as of March 31, 2025. The increase in AUM during the quarter was primarily attributable to improving market conditions. Compared to June 30, 2024, total AUM increased 6.9% from $7.01 billion.

Credit Quality

Non-performing assets totaled $18.8 million, or 0.62% of Total assets, as of June 30, 2025, compared to $17.1 million, or 0.59% of total assets, as of March 31, 2025. The increase in non-performing assets during the quarter was due to additions to non-performing loans. As of June 30, 2024, non-performing assets totaled $49.3 million, or 1.68% of total assets. Relative to the second quarter of 2024, the decrease in non-performing assets was primarily driven by the sale of two OREO properties, partially offset by additions to non-performing loans. OREO totaled $4.4 million as of June 30, 2025 and March 31, 2025, a decrease of $7.0 million from $11.4 million as of June 30, 2024.

Non-performing loans totaled $14.4 million as of June 30, 2025, an increase of $1.6 million from $12.8 million as of March 31, 2025. The increase was due to the addition of one credit relationship that is in active workout. This relationship is secured by a residential real estate asset, business assets, and a personal guarantee. As of June 30, 2024, non-performing loans totaled $37.9 million. The decrease when compared to June 30, 2024 was driven by the migration of one loan relationship out of non-performing loans and into OREO, partially offset by additions to non-performing loans.

During the second quarter of 2025, the Company recorded provision expense of $1.8 million, compared to $0.1 million in the first quarter of 2025 and $2.3 million in the second quarter of 2024. The increase in provision expense recorded in the second quarter of 2025 compared to the first quarter of 2025 was primarily driven by loan growth and charge-offs.

Capital

As of June 30, 2025, First Western (“Consolidated”) and First Western Trust Bank (“Bank”) exceeded the minimum capital levels required by their respective regulators. As of June 30, 2025, the Bank was classified as “well capitalized,” as summarized in the following table:

 

June 30,

 

2025

Consolidated Capital

 

Tier 1 capital to risk-weighted assets

9.96

%

Common Equity Tier 1 ("CET1") to risk-weighted assets

9.96

 

Total capital to risk-weighted assets

12.67

 

Tier 1 capital to average assets

8.31

 

 

 

Bank Capital

 

Tier 1 capital to risk-weighted assets

11.36

%

CET1 to risk-weighted assets

11.36

 

Total capital to risk-weighted assets

12.13

 

Tier 1 capital to average assets

9.49

 

Book value per common share increased 0.8% from $26.44 as of March 31, 2025 to $26.64 as of June 30, 2025. Book value per common share increased 4.3% from $25.55 as of June 30, 2024.

Tangible book value per common share(1) increased 0.9% from $23.18 as of March 31, 2025, to $23.39 as of June 30, 2025. Tangible book value per common share increased 5.0% from $22.27 as of June 30, 2024.

During the three months ended June 30, 2025, the Company repurchased 26,287 shares for $0.5 million.

(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, July 25, 2025. Telephone access: https://register-conf.media-server.com/register/BI4e9784b7b6ee4a528ae8f3affe52d2ee.

A slide presentation relating to the second 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.

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.

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

First Western Financial, Inc.
Condensed Consolidated Statements of Income (unaudited)

 

 

Three Months Ended

 

June 30,

 

March 31,

 

June 30,

(dollars in thousands, except per share amounts)

 

2025

 

 

2025

 

 

2024

 

Interest and dividend income:

 

 

 

 

 

Loans, including fees

$

35,085

 

$

34,068

 

$

35,275

 

Loans accounted for under the fair value option

 

85

 

 

111

 

 

168

 

Investment securities

 

819

 

 

681

 

 

651

 

Interest-bearing deposits in other financial institutions

 

1,356

 

 

2,221

 

 

1,855

 

Dividends, restricted stock

 

155

 

 

128

 

 

105

 

Total interest and dividend income

 

37,500

 

 

37,209

 

 

38,054

 

 

 

 

 

 

 

Interest expense:

 

 

 

 

 

Deposits

 

18,208

 

 

18,516

 

 

20,848

 

Other borrowed funds

 

1,408

 

 

1,240

 

 

1,428

 

Total interest expense

 

19,616

 

 

19,756

 

 

22,276

 

Net interest income

 

17,884

 

 

17,453

 

 

15,778

 

Less: Provision for credit losses

 

1,773

 

 

80

 

 

2,334

 

Net interest income, after provision for credit losses

 

16,111

 

 

17,373

 

 

13,444

 

 

 

 

 

 

 

Non-interest income:

 

 

 

 

 

Trust and investment management fees

 

4,512

 

 

4,677

 

 

4,875

 

Net gain on mortgage loans

 

1,187

 

 

1,067

 

 

1,820

 

Net gain on loans held for sale

 

 

 

222

 

 

 

Bank fees

 

293

 

 

422

 

 

327

 

Risk management and insurance fees

 

47

 

 

259

 

 

109

 

Income on company-owned life insurance

 

112

 

 

110

 

 

106

 

Net gain (loss) on loans accounted for under the fair value option

 

26

 

 

6

 

 

(315

)

Net gain on other real estate owned

 

 

 

459

 

 

 

Unrealized gain (loss) recognized on equity securities

 

3

 

 

11

 

 

(2

)

Other

 

125

 

 

112

 

 

52

 

Total non-interest income

 

6,305

 

 

7,345

 

 

6,972

 

Total income before non-interest expense

 

22,416

 

 

24,718

 

 

20,416

 

 

 

 

 

 

 

Non-interest expense:

 

 

 

 

 

Salaries and employee benefits

 

11,019

 

 

11,480

 

 

11,097

 

Occupancy and equipment

 

2,224

 

 

2,210

 

 

2,080

 

Professional services

 

1,855

 

 

1,704

 

 

1,826

 

Technology and information systems

 

1,030

 

 

1,078

 

 

1,042

 

Data processing

 

1,166

 

 

1,122

 

 

1,101

 

Marketing

 

267

 

 

216

 

 

243

 

Amortization of other intangible assets

 

52

 

 

51

 

 

56

 

Other

 

1,486

 

 

1,500

 

 

1,556

 

Total non-interest expense

 

19,099

 

 

19,361

 

 

19,001

 

Income before income taxes

 

3,317

 

 

5,357

 

 

1,415

 

Income tax expense

 

814

 

 

1,172

 

 

339

 

Net income available to common shareholders

$

2,503

 

$

4,185

 

$

1,076

 

Earnings per common share:

 

 

 

 

 

Basic

$

0.26

 

$

0.43

 

$

0.11

 

Diluted

 

0.26

 

 

0.43

 

 

0.11

 


First Western Financial, Inc.
Condensed Consolidated Balance Sheets (unaudited)

 

 

 

 

 

 

 

June 30,

 

March 31,

 

June 30,

(dollars in thousands)

 

2025

 

 

 

2025

 

 

 

2024

 

Assets

 

 

 

 

 

Cash and cash equivalents:

 

 

 

 

 

Cash and due from banks

$

12,353

 

 

$

15,924

 

 

$

6,374

 

Interest-bearing deposits in other financial institutions

 

219,961

 

 

 

255,658

 

 

 

239,425

 

Total cash and cash equivalents

 

232,314

 

 

 

271,582

 

 

 

245,799

 

 

 

 

 

 

 

Held-to-maturity debt securities (fair value of $93,979, $67,479 and $71,067, respectively), net of allowance for credit losses of $71

 

99,825

 

 

 

73,775

 

 

 

78,927

 

Correspondent bank stock, at cost

 

11,254

 

 

 

5,968

 

 

 

10,804

 

Mortgage loans held for sale, at fair value

 

24,151

 

 

 

10,557

 

 

 

26,856

 

Loans (includes $5,099, $6,112, and $10,190 measured at fair value, respectively)

 

2,540,096

 

 

 

2,425,367

 

 

 

2,456,063

 

Allowance for credit losses

 

(18,994

)

 

 

(17,956

)

 

 

(27,319

)

Loans, net

 

2,521,102

 

 

 

2,407,411

 

 

 

2,428,744

 

Premises and equipment, net

 

24,488

 

 

 

24,554

 

 

 

24,657

 

Accrued interest receivable

 

10,783

 

 

 

10,623

 

 

 

11,339

 

Accounts receivable

 

4,435

 

 

 

4,505

 

 

 

5,118

 

Other receivables

 

4,915

 

 

 

4,608

 

 

 

4,875

 

Other real estate owned, net

 

4,385

 

 

 

4,385

 

 

 

11,421

 

Goodwill and other intangible assets, net

 

31,524

 

 

 

31,576

 

 

 

31,741

 

Deferred tax assets, net

 

2,809

 

 

 

2,856

 

 

 

6,123

 

Company-owned life insurance

 

17,184

 

 

 

17,071

 

 

 

16,741

 

Other assets

 

37,628

 

 

 

36,829

 

 

 

34,410

 

Total assets

$

3,026,797

 

 

$

2,906,300

 

 

$

2,937,555

 

 

 

 

 

 

 

Liabilities

 

 

 

 

 

Deposits:

 

 

 

 

 

Noninterest-bearing

$

361,656

 

 

$

409,696

 

 

$

396,702

 

Interest-bearing

 

2,167,473

 

 

 

2,105,701

 

 

 

2,014,190

 

Total deposits

 

2,529,129

 

 

 

2,515,397

 

 

 

2,410,892

 

Borrowings:

 

 

 

 

 

Federal Home Loan Bank and Federal Reserve borrowings

 

163,416

 

 

 

51,612

 

 

 

191,505

 

Subordinated notes

 

44,673

 

 

 

44,621

 

 

 

52,451

 

Accrued interest payable

 

1,406

 

 

 

2,371

 

 

 

2,243

 

Other liabilities

 

29,326

 

 

 

35,744

 

 

 

33,589

 

Total liabilities

 

2,767,950

 

 

 

2,649,745

 

 

 

2,690,680

 

 

 

 

 

 

 

Shareholders’ Equity

 

 

 

 

 

Total shareholders’ equity

 

258,847

 

 

 

256,555

 

 

 

246,875

 

Total liabilities and shareholders’ equity

$

3,026,797

 

 

$

2,906,300

 

 

$

2,937,555

 

 

 

 

 

 

 

 

 

 

 

 

 


First Western Financial, Inc.
Consolidated Financial Summary (unaudited)

 

 

 

 

 

 

 

June 30,

 

March 31,

 

June 30,

(dollars in thousands)

 

2025

 

 

 

2025

 

 

 

2024

 

Loan Portfolio

 

 

 

 

 

Cash, Securities, and Other

$

161,725

 

 

$

101,078

 

 

$

143,720

 

Consumer and Other

 

15,778

 

 

 

16,688

 

 

 

15,645

 

Construction and Development

 

255,870

 

 

 

291,133

 

 

 

309,146

 

1-4 Family Residential

 

1,012,662

 

 

 

971,179

 

 

 

904,569

 

Non-Owner Occupied CRE

 

655,954

 

 

 

636,820

 

 

 

609,790

 

Owner Occupied CRE

 

196,692

 

 

 

182,417

 

 

 

189,353

 

Commercial and Industrial

 

239,278

 

 

 

223,197

 

 

 

277,973

 

Total

 

2,537,959

 

 

 

2,422,512

 

 

 

2,450,196

 

Loans accounted for under the fair value option

 

5,235

 

 

 

6,280

 

 

 

10,494

 

Total loans held for investment

 

2,543,194

 

 

 

2,428,792

 

 

 

2,460,690

 

Deferred (fees) costs and unamortized premiums/(unaccreted discounts), net(1)

 

(3,098

)

 

 

(3,425

)

 

 

(4,627

)

Loans (includes $5,099, $6,112, and $10,190 measured at fair value, respectively)

$

2,540,096

 

 

$

2,425,367

 

 

$

2,456,063

 

Mortgage loans held for sale

 

24,151

 

 

 

10,557

 

 

 

26,856

 

 

 

 

 

 

 

Deposit Portfolio

 

 

 

 

 

Money market deposit accounts

$

1,632,997

 

 

$

1,566,737

 

 

$

1,342,753

 

Time deposits

 

397,006

 

 

 

379,533

 

 

 

519,597

 

Interest checking accounts

 

123,967

 

 

 

144,980

 

 

 

135,759

 

Savings accounts

 

13,503

 

 

 

14,451

 

 

 

16,081

 

Total interest-bearing deposits

 

2,167,473

 

 

 

2,105,701

 

 

 

2,014,190

 

Noninterest-bearing accounts

 

361,656

 

 

 

409,696

 

 

 

396,702

 

Total deposits

$

2,529,129

 

 

$

2,515,397

 

 

$

2,410,892

 

____________________
(1) Includes fair value adjustments on loans held for investment accounted for under the fair value option.


First Western Financial, Inc.
Consolidated Financial Summary (unaudited) (continued)

 

 

As of or for the Three Months Ended

 

June 30,

 

March 31,

 

June 30,

(dollars in thousands)

 

2025

 

 

 

2025

 

 

 

2024

 

Average Balance Sheets

 

 

 

 

 

Assets

 

 

 

 

 

Interest-earning assets:

 

 

 

 

 

Interest-bearing deposits in other financial institutions

$

121,950

 

 

$

198,294

 

 

$

141,600

 

Debt securities

 

85,739

 

 

 

75,592

 

 

 

75,461

 

Correspondent bank stock

 

7,199

 

 

 

5,806

 

 

 

4,801

 

Gross loans

 

2,443,758

 

 

 

2,407,482

 

 

 

2,443,937

 

Mortgage loans held for sale

 

18,803

 

 

 

13,593

 

 

 

20,254

 

Loans held at fair value

 

5,690

 

 

 

6,846

 

 

 

11,314

 

Total interest-earning assets

 

2,683,139

 

 

 

2,707,613

 

 

 

2,697,367

 

Noninterest-earning assets

 

126,397

 

 

 

145,479

 

 

 

119,247

 

Total assets

$

2,809,536

 

 

$

2,853,092

 

 

$

2,816,614

 

 

 

 

 

 

 

Liabilities and Shareholders’ Equity

 

 

 

 

 

Interest-bearing liabilities:

 

 

 

 

 

Interest-bearing deposits

$

2,047,570

 

 

$

2,090,505

 

 

$

2,001,691

 

FHLB and Federal Reserve borrowings

 

75,362

 

 

 

51,885

 

 

 

67,196

 

Subordinated notes

 

44,639

 

 

 

52,495

 

 

 

52,414

 

Total interest-bearing liabilities

 

2,167,571

 

 

 

2,194,885

 

 

 

2,121,301

 

Noninterest-bearing liabilities:

 

 

 

 

 

Noninterest-bearing deposits

 

352,391

 

 

 

363,922

 

 

 

412,741

 

Other liabilities

 

32,794

 

 

 

41,656

 

 

 

34,051

 

Total noninterest-bearing liabilities

 

385,185

 

 

 

405,578

 

 

 

446,792

 

Total shareholders’ equity

 

256,780

 

 

 

252,629

 

 

 

248,521

 

Total liabilities and shareholders’ equity

$

2,809,536

 

 

$

2,853,092

 

 

$

2,816,614

 

 

 

 

 

 

 

Yields/Cost of funds (annualized)

 

 

 

 

 

Interest-bearing deposits in other financial institutions

 

4.46

%

 

 

4.54

%

 

 

5.27

%

Debt securities

 

3.83

 

 

 

3.65

 

 

 

3.47

 

Correspondent bank stock

 

8.64

 

 

 

8.94

 

 

 

8.80

 

Loans

 

5.71

 

 

 

5.71

 

 

 

5.75

 

Loan held at fair value

 

5.99

 

 

 

6.58

 

 

 

5.97

 

Mortgage loans held for sale

 

6.61

 

 

 

5.46

 

 

 

6.83

 

Total interest-earning assets

 

5.61

 

 

 

5.57

 

 

 

5.67

 

Interest-bearing deposits

 

3.57

 

 

 

3.59

 

 

 

4.19

 

Total deposits

 

3.04

 

 

 

3.06

 

 

 

3.47

 

FHLB and Federal Reserve borrowings

 

4.14

 

 

 

3.92

 

 

 

4.14

 

Subordinated notes

 

5.66

 

 

 

5.70

 

 

 

5.66

 

Total interest-bearing liabilities

 

3.63

 

 

 

3.65

 

 

 

4.22

 

Net interest margin

 

2.67

 

 

 

2.61

 

 

 

2.35

 

Net interest rate spread

 

1.98

 

 

 

1.92

 

 

 

1.45

 


First Western Financial, Inc.
Consolidated Financial Summary (unaudited) (continued)

 

 

 

As of or for the Three Months Ended

 

June 30,

 

March 31,

 

June 30,

(dollars in thousands, except share and per share amounts)

 

2025

 

 

 

2025

 

 

 

2024

 

Asset Quality

 

 

 

 

 

Non-performing loans

$

14,394

 

 

$

12,758

 

 

$

37,909

 

Non-performing assets

 

18,779

 

 

 

17,143

 

 

 

49,330

 

Net charge-offs (recoveries)

 

657

 

 

 

566

 

 

 

(9

)

Non-performing loans to total loans

 

0.57

%

 

 

0.53

%

 

 

1.54

%

Non-performing assets to total assets

 

0.62

 

 

 

0.59

 

 

 

1.68

 

Allowance for credit losses to non-performing loans

 

131.96

 

 

 

140.74

 

 

 

72.06

 

Allowance for credit losses to total loans

 

0.75

 

 

 

0.74

 

 

 

1.11

 

Net charge-offs to average loans

 

0.03

 

 

 

0.02

 

 

*

 

 

 

 

 

 

Assets Under Management

$

7,497,361

 

 

$

7,176,624

 

 

$

7,011,796

 

 

 

 

 

 

 

Market Data

 

 

 

 

 

Book value per share at period end

$

26.64

 

 

$

26.44

 

 

$

25.55

 

Tangible book value per common share(1)

 

23.39

 

 

 

23.18

 

 

 

22.27

 

Weighted average outstanding shares, basic

 

9,707,924

 

 

 

9,704,419

 

 

 

9,647,345

 

Weighted average outstanding shares, diluted

 

9,809,321

 

 

 

9,798,591

 

 

 

9,750,667

 

Shares outstanding at period end

 

9,717,922

 

 

 

9,704,320

 

 

 

9,660,549

 

 

 

 

 

 

 

Consolidated Capital

 

 

 

 

 

Tier 1 capital to risk-weighted assets

 

9.96

%

 

 

10.35

%

 

 

9.92

%

CET1 to risk-weighted assets

 

9.96

 

 

 

10.35

 

 

 

9.92

 

Total capital to risk-weighted assets

 

12.67

 

 

 

13.15

 

 

 

13.44

 

Tier 1 capital to average assets

 

8.31

 

 

 

8.12

 

 

 

7.91

 

 

 

 

 

 

 

Bank Capital

 

 

 

 

 

Tier 1 capital to risk-weighted assets

 

11.36

%

 

 

11.76

%

 

 

11.22

%

CET1 to risk-weighted assets

 

11.36

 

 

 

11.76

 

 

 

11.22

 

Total capital to risk-weighted assets

 

12.13

 

 

 

12.52

 

 

 

12.35

 

Tier 1 capital to average assets

 

9.49

 

 

 

9.24

 

 

 

8.95

 

____________________
(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.

First Western Financial, Inc.
Consolidated Financial Summary (unaudited) (continued)

Reconciliations of Non-GAAP Financial Measures

 

As of or for the Three Months Ended

 

June 30,

 

March 31,

 

June 30,

(dollars in thousands, except share and per share amounts)

 

2025

 

 

 

2025

 

 

 

2024

 

Tangible Common

 

 

 

 

 

Total shareholders' equity

$

258,847

 

 

$

256,555

 

 

$

246,875

 

Less: goodwill and other intangibles, net

 

31,524

 

 

 

31,576

 

 

 

31,741

 

Tangible common equity

$

227,323

 

 

$

224,979

 

 

$

215,134

 

 

 

 

 

 

 

Common shares outstanding, end of period

 

9,717,922

 

 

 

9,704,320

 

 

 

9,660,549

 

Tangible common book value per share

$

23.39

 

 

$

23.18

 

 

$

22.27

 

Net income available to common shareholders

 

2,503

 

 

 

4,185

 

 

 

1,076

 

Return on tangible common equity (annualized)

 

4.40

%

 

 

7.44

%

 

 

2.00

%

 

 

 

 

 

 

Efficiency

 

 

 

 

 

Non-interest expense

$

19,099

 

 

$

19,361

 

 

$

19,001

 

Less: OREO expenses and write-downs

 

53

 

 

 

(80

)

 

 

29

 

Adjusted non-interest expense

$

19,046

 

 

$

19,441

 

 

$

18,972

 

 

 

 

 

 

 

Total income before non-interest expense

$

22,416

 

 

$

24,718

 

 

$

20,416

 

Less: unrealized gain (loss) recognized on equity securities

 

3

 

 

 

11

 

 

 

(2

)

Less: net gain (loss) on loans accounted for under the fair value option

 

26

 

 

 

6

 

 

 

(315

)

Less: net gain on loans held for sale

 

 

 

 

222

 

 

 

 

Plus: provision for credit losses

 

1,773

 

 

 

80

 

 

 

2,334

 

Gross revenue

$

24,160

 

 

$

24,559

 

 

$

23,067

 

Efficiency ratio

 

78.83

%

 

 

79.16

%

 

 

82.25

%