First Western Financial (MYFW) investor relations material

Executive summary

• Strong Q3 execution across loan growth, deposit mix, NIM, trust fees, expense control and asset quality; pre-tax, pre-provision net income rose 14.5% QoQ and 27% YoY.

• Net income available to common shareholders was $6.0 million and diluted EPS was $0.60, each up 88% YoY; tangible book value per share rose 2.9% QoQ to $26.28.

• Stronger loan and deposit growth, a wider NIM and disciplined expenses supported higher net interest income and pre-provision net revenue; asset quality remained stable.

Financial highlights

• Gross revenue rose 2.8% QoQ to $28.9 million; total income before non-interest expense was $28.1 million, down 1.7% QoQ and up 17.1% YoY.

• Net interest income increased 5.5% QoQ to $23.0 million and 17.9% YoY.

• Non-interest income declined $0.6 million QoQ to $5.8 million, primarily on lower mortgage loan gains and bank fees.

• Non-interest expense fell 1.9% QoQ to $20.8 million; Q2 included a $0.380 million capitalized technology-asset write-off.

• Q3 provision for credit losses was $0.6 million, reflecting increased loan volume.

Outlook and guidance

• Management expects further Q4 improvement, supported by loan and deposit growth, improved deposit mix, NIM expansion and wealth-management activity.

• Strong pipelines and experienced hires are expected to support loan growth and business development; ~10% loan growth for 2026 appeared on track, with a 15% run rate into 2027 described as reasonable.

• Management expects to operate at 1% ROA during 2027, with a medium-term path to 1.5% if markets remain healthy and rates relatively stable.

• Revenue growth and disciplined expense management are expected to support operating leverage; management cited no meaningful asset-quality deterioration based on current trends.

• Excluding the quarter’s one-time tax benefit, 23% was described as a reasonable effective tax-rate estimate.