First Western Financial, Inc. · NASDAQ:MYFW

First Western Financial — Investor Presentation (March 2025)

50 slides from First Western Financial's investor presentation, Mar 7, 2025

1. Slide 1: Investor Presentation March 2025

   INVESTOR PRESENTATION March 2025

2. Slide 2: Safe Harbor

   Safe Harbor 2 This presentation contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements reflect the current views of First Western Financial

3. Slide 3: A Unique Financial Institution in Attractive Markets

   3 A Unique Financial Institution in Attractive Markets Overview  Niche-focused regional wealth manager built on a private trust bank platform  Headquartered in Denver, Colorado and positioned in desirable, affluent and high growth markets Target Market  Households of $1+ million liquid net worth

4. Slide 4: Investment Highlights

   4 Investment Highlights Successful Execution on Growth Strategies Attractive Markets and Business Model Strong Earnings Momentum  Significant revenue growth driving improved operating leverage and higher profitability since pre-IPO  TBV/share(1) increased ~148% since the IPO  Continued scale expe

5. Slide 5: Strong Operational and Financial Momentum

   $5,795 $7,602 $10,854 $37,745 $28,510 $32,510 $17,416 $13,512 $0 $5,000 $10,000 $15,000 $20,000 $25,000 $30,000 $35,000 $40,000 2017 2018 2019 2020 2021 2022 2023 2024 2016-2020 Pre-Tax, Pre-Provision Income(1) ($000s) 5 Strong Operational and Financial Momentum  Robust organic balance sheet growth

6. Slide 6: Franchise Overview

   Franchise Overview W FIRSTWestern ERE

7. Slide 7: Great Markets, Scarce Investment Opportunity

   7 Great Markets, Scarce Investment Opportunity  Ranked among states with highest GDP growth  Strong job and population growth  Experiencing significant in-migration  Attractive demographics with large amount of high net worth individuals that utilize private banking and investment management ser

8. Slide 8: Success in Expansion and Acquisition Growth

   8 Success in Expansion and Acquisition Growth 2006 – 2010 (3)  Boulder, CO  Century City, CA  Scottsdale, AZ 2011 – 2015 (6)  Aspen, CO  DTC/Cherry Hills, CO  Fort Collins, CO  Jackson Hole, WY  Laramie, WY(4)  Phoenix, AZ 2016 – 2020 (4)  Broomfield, CO (2021)  Greenwood Village, CO  Lo

9. Slide 9: Revenue Growth Strategies

   9 Revenue Growth Strategies Expand commercial loan production platform  Building expertise in specific vertical markets  Capitalize on growing reputation to attract additional experienced commercial banking talent Expand into new markets with attractive demographics  Vail Valley office opened in

10. Slide 10: Recent M&A Transactions

    10 Recent M&A Transactions Branch Purchase and Assumption Whole Bank Acquisition  Closed on May 18, 2020  Acquisition of all of the Denver locations of Simmons Bank (three branches and one loan production office)  Assumed $63 million in deposits and $120 million in loans related to the acquired l

11. Slide 11: Increasing Market Share

    11 Increasing Market Share Successfully attracting new banking talent and growing awareness of superior value proposition are driving increases in market share Change 2022 Market Share 2024 Market Share(1) MSA 0.36%0.77%1.13%Denver-Aurora-Centennial, CO 2.17%2.20%4.37%Fort Collins-Loveland, CO 0.41%

12. Slide 12: Unique Business Model

    Unique Business Model 12 W FIRSTWestern ERE

13. Slide 13: Unique Market Position

    Unique Market Position High A v Level of Retail Sophistication Brokerage Firms A Life Insurance Companies v Low Sales <__________________» Basis of Relationship <——______________» Trust 13 W FIRST

14. Slide 14: Cross-Selling a Diverse Set of Products and Services

     Corporate loans to match specific needs  Well-versed in working with complex cash flows and business models  Customized treasury management products and services 14 Cross-Selling a Diverse Set of Products and Services Commercial Banking  Fiduciary wealth management with expert review of client

15. Slide 15: Wealth Management Segment Earnings

    15 Wealth Management Segment Earnings (1) See Non-GAAP reconciliation $1.52 $2.60 $3.21 $1.12 $1.12 $4.15 $3.31 $2.97 $0.85 $1.22 $0.00 $0.50 $1.00 $1.50 $2.00 $2.50 $3.00 $3.50 $4.00 $4.50 FY20 FY21 FY22 FY23 FY24 Wealth Management Segment Consolidated  Wealth Management segment earnings reflects

16. Slide 16: Long Track Record of Superior Credit Quality

    16 Long Track Record of Superior Credit Quality • Relationship-based approach, conservative underwriting criteria, and financial strength of clients have resulted in minimal credit losses over First Western’s history  Underwriting criteria includes three sources of repayment including personal guar

17. Slide 17: Strong Client Relationships Result in Sticky Deposit Base

    Uninsured Deposits Represent 35.9% of Total Deposits at 12/31/24 17 Strong Client Relationships Result in Sticky Deposit Base $2,392 $2,375 $2,420 $2,529 $2,532 $2,411 $2,503 $2,514 $0 $500 $1,000 $1,500 $2,000 $2,500 $3,000 1Q23 2Q23 3Q23 4Q23 1Q24 2Q24 3Q24 4Q24 Total Deposits Stable Deposit Base

18. Slide 18: Driving Profitable Growth

    Driving Profitable Growth 18

19. Slide 19: Strong Execution on Revenue Growth Strategies

    19 Strong Execution on Revenue Growth Strategies  Accelerating business development, office expansion and accretive acquisitions all contributing to the balance sheet growth driving improved operating leverage and higher profitability  M&A strategy continued with acquisition of Teton Financial Ser

20. Slide 20: Recent Financial Trends

    Recent Financial Trends 20 W FIRSTWestern ERE

21. Slide 21: Overview of 4Q24

    Overview of 4Q24 4Q24 Earnings • Net income available to common shareholders of $2.7 million or $0.28 per diluted share • Net interest income after provision for credit losses improved to $17.9 million compared to prior quarter of $15.1 million • Positive trends in a number of key areas resulted in

22. Slide 22: Net Income Available to Common Shareholders and Earnings per Share

    22 Net Income Available to Common Shareholders and Earnings per Share • Net income of $2.7 million, or $0.28 diluted earnings per share, in 4Q24 • Provision for credit losses decreased $1.5 million in 4Q24 • Tangible book value per share(1) increased 1.6% to $22.83 Net Income Available to Common Sha

23. Slide 23: Loan Portfolio

    23 Loan Portfolio • Total loans held for investment increased $41.7 million from prior quarter, reversing our five quarter average loan balance decline • Loan growth driven by higher level of new loan production and increased utilization of existing lines of credit • New loan production improved in

24. Slide 24: Total Deposits

    24 Total Deposits • Total average deposits increased 4.0% from $2.40 billion in 3Q24 to $2.50 billion in 4Q24. The increase was driven by average interest-bearing and noninterest-bearing growth • Total deposits increased 0.4% from $2.50 billion in 3Q24 to $2.51 billion in 4Q24 • Noninterest-bearing

25. Slide 25: Trust and Investment Management

    25 Trust and Investment Management • Total assets under management decreased 1.9% during the quarter to $7.3 billion and increased 8.4% from 4Q23 • The decrease in AUM from 3Q24 was primarily attributed to net withdrawals and lower market values at the end of the fourth quarter of 2024 ($ in million

26. Slide 26: Gross Revenue

    (1) See Non-GAAP reconciliation within the appendix Gross Revenue Gross Revenue(1) Gross Revenue(1) 26 • Gross revenue(1) increased 4.8% from prior quarter • Net interest income increased 8.3% from prior quarter primarily driven by NIM expansion and growth in interest-earning assets • Non-interest i

27. Slide 27: Net Interest Income and Net Interest Margin

    27 Net Interest Income and Net Interest Margin • Net interest income increased $1.3 million, or 8.3%, from $15.6 million in 3Q24 to $16.9 million, primarily driven by an increase in interest-earnings assets and a 13 basis point increase in net interest margin • Net interest margin increased 13 basis

28. Slide 28: Non-Interest Income

    28 Non-Interest Income • Non-interest income decreased $0.5 million to $6.5 million from the prior quarter driven by a decrease in Net gain on mortgage loans and a write-down on one loan held for sale, offset partially by an increase in Risk management and insurance fees • Record quarter of Risk man

29. Slide 29: Non-Interest Expense and Efficiency Ratio

    29 Non-Interest Expense and Efficiency Ratio • Non-interest expense increased to $20.4 million from $19.4 million in the third quarter, primarily driven driven by a $1.1 million write-down on OREO driven by updated appraisals received during the quarter, partially offset by decreases in Salaries and

30. Slide 30: Asset Quality

    30 Asset Quality • NPAs decreased $3.1 million to $49.0 million due to pay downs, the migration of one non-performing loan into performing, and the write-down of OREO • NPLs decreased $1.9 million to $13.1 million due to pay downs and the migration of one non- performing loan into performing • NPA/T

31. Slide 31: Capital and Liquidity Overview

    31 Capital and Liquidity Overview Liquidity Funding Sources (as of 12/31/24) (1) See Non-GAAP reconciliation within the appendix (2) Based on internal policy guidelines Consolidated Capital Ratios (as of 12/31/24) Tangible Common Equity / TBV per Share(1) ($ in thousands) Liquidity Reserves: $ 234,4

32. Slide 32: Creating Additional Shareholder Value

    Creating Additional Shareholder Value 32

33. Slide 33: 2025 Outlook and Priorities

    33 2025 Outlook and Priorities • First Western's markets continue to perform well and the strength of our balance sheet and franchise provides opportunities to capitalize on market disruption and challenges being faced by competing banks to add new clients and banking talent • Addition of banking ta

34. Slide 34: Drivers of Long-Term Improved Financial Performance

    34 Drivers of Long-Term Improved Financial Performance Efficiency Ratio Asset Quality ROA and ROE  Net interest margin expanding due to increase in average yield on loans and improving deposit mix  Disciplined balance sheet management and effective business development efforts expected to result i

35. Slide 35: MYFW: Our Five Core Strengths

    35 MYFW: Our Five Core Strengths Differentiated, Proven in the Marketplace Built-in Operating Leverage Highly Desirable Recurring Fee Income Experienced, Tested Team Unique Opportunity for Investors  Niche-focused franchise headquartered in Denver, Colorado  Well-positioned in many attractive mark

36. Slide 36: Integrated Team Approach in Boutique Offices

    36 President Private Bankers Lenders Portfolio Managers Trust Officer Team-based incentives Relationship-based wealth management Many relationship managers to one client Product group specialists Holistic view of the client – ConnectView® Integrated Team Approach in Boutique Offices Working as a tea

37. Slide 37: Organizational Structure Built for Scale

    37 Organizational Structure Built for Scale Full Bank and Trust:  Aspen, CO  Boulder, CO  Cherry Creek, CO  Denver, CO  DTC/Cherry Hills, CO  Northern Colorado  Jackson Hole, WY  Rock Springs, WY  Pinedale, WY  Scottsdale, AZ  Broomfield, CO  Phoenix, AZ  Vail Valley, Avon, CO  Bozeman

38. Slide 38: Long-Term Goals to Drive Shareholder Value

    38 Long-Term Goals to Drive Shareholder Value  Since our pre-2018 IPO status as of year end 2017, we have tripled total loans and total deposits, more than doubled TBV per share, had substantial increases in annual revenue, and demonstrated significant operating leverage. Looking forward we can dri

39. Slide 39: Core strengths provide the foundation for driving shareholder value

    MYFW’s core strengths provide the foundation for driving shareholder value 39 A Unique and Attractive Investment Differentiated, Proven in the Marketplace Built-in Operating Leverage Highly Desirable Recurring Fee Income Experienced, Tested Team Unique Opportunity for Investors

40. Slide 40: Appendix

    Appendix 40 W FIRSTWestern ERE

41. Slide 41: Organizational Overview

    Organizational Overview 41 W FIRSTWestern ERE

42. Slide 42: Executive Management Team

    Prior ExperienceYears in Industry Joined FWTitleName  Chairman & CEO, Northern Trust Bank of Colorado  Chairman & CEO, Trust Bank of Colorado  CEO, Equitable Bancshares of Colorado and Women’s Bank, Chairman, Equitable Bank  Chairman, American Fundware  President & CEO, Bank and Trust of Puerto

43. Slide 43: Board of Directors

    Primary BusinessDirector SinceName  First Western Financial, Inc.2002Scott C. Wylie  Former Finance Executive at Arconic, Inc. (fka Alcoa Inc.)  Former audit partner at Deloitte  Board member & Audit Committee chair for FCF (NYSE) 2017Julie A. Caponi, CPA(1)  First Western Financial, Inc.2021Ju

44. Slide 44: Non-GAAP Reconciliations

    Non-GAAP Reconciliations 44

45. Slide 45: Non-GAAP Reconciliation: Consolidated Gross Revenue

    45 Non-GAAP Reconciliation Consolidated Gross Revenue For the Years Ended, (Dollars in thousands) 2018 2019 2020 2021 2022 2023 2024 Total income before non-interest expense 57,602$ 63,997$ 92,615$ 95,408$ 107,934$ 82,698$ 90,071$ Less: Unrealized (loss) gain recognized on equity securities (15) 21

46. Slide 46: Non-GAAP Reconciliation: Consolidated Efficiency Ratio

    46 Non-GAAP Reconciliation Consolidated Efficency Ratio (Dollars in thousands) 2018 2019 2020 2021 2022 2023 2024 Non-interest expense 50,182$ 53,806$ 59,552$ 68,128$ 79,106$ 75,637$ 78,492$ Less: OREO expenses and write-downs - - 190 - - - 1,285 Less: Loss on assets held for sale - - 553 - - - - Pl

47. Slide 47: Non-GAAP Reconciliation: Adjusted Diluted Pre-Tax Earnings Per Share

    47 Non-GAAP Reconciliation Adjusted Diluted Pre-Tax Earnings Per Share (Dollars in thousands) 31-Dec-23 31-Mar-24 30-Jun-24 30-Sep-24 31-Dec-24 Wealth Management (loss) income before income tax (3,626)$ 3,397$ 645$ 2,218$ 4,369$ Mortgage (loss) income before income tax (731) 182 770 453 (455) Plus:

48. Slide 48: Non-GAAP Reconciliation: Tangible Common Book Value Per Share

    48 Non-GAAP Reconciliation As of,Consolidated Tangible Common Book Value Per Share Dec. 31, 2024 Sept. 30, 2024 Jun. 30, 2024 Mar. 31, 2024 Dec. 31, 2023 Dec. 31, 2022 Dec. 31, 2021 Dec. 31, 2020 Dec. 31, 2019(Dollars in thousands) $ 252,322$ 248,831$ 246,875$ 245,528$ 242,738$ 240,864$ 219,041$ 154

49. Slide 49: Non-GAAP Reconciliation: Wealth Management Gross Revenue

    49 Non-GAAP Reconciliation For the Three Months Ended,Wealth Management Gross Revenue December 31, 2024September 30, 2024June 30, 2024March 31, 2024December 31, 2023(Dollars in thousands) $ 23,540$ 20,296$ 18,242$ 21,890$ 13,362Total income before non-interest expense (49)24(2)(6)(2) Less: unrealize

50. Slide 50: Non-GAAP Reconciliation: Allowance for Credit Losses

    50 Non-GAAP Reconciliation As ofAllowance for Credit Losses to Bank Originated Loans Excluding PPP December 31, 2024September 30, 2024June 30, 2024March 31, 2024December 31, 2023(Dollars in thousands) $ 2,428,994$ 2,387,288$ 2,460,690$ 2,480,196$ 2,539,990Total loans held for investment 2,0872,6033,

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