First Western Financial (MYFW) investor relations material

Executive summary

• Net income available to common shareholders was $5.7 million ($0.57 per diluted share) in Q2 2026, up 129% year-over-year, driven by higher net interest income and a release of provision for credit losses.

• Tangible book value per share increased 2.6% to $25.53.

• Loan production remained healthy and diversified, supported by new banking talent and favorable economic activity.

• Asset quality remained stable with zero charge-offs and a small decrease in non-performing assets.

• Wealth Management segment delivered strong profit growth, while the Mortgage segment posted a small loss before taxes for the quarter.

Financial highlights

• Net interest income for Q2 2026 increased 21.8% year-over-year to $21.8 million, with net interest margin up 23 basis points to 2.90%.

• Total deposits were $2.85 billion, up 0.4% sequentially and 12.6% year-over-year, with non-interest-bearing deposits up 5.1% in the quarter.

• Loans held for investment rose $23.1 million sequentially; total loans up 7% year-over-year.

• Non-interest income was $6.4 million, up 1.3% year-over-year, but down $0.3 million sequentially, mainly due to lower mortgage loan sales and insurance fees.

• Non-interest expense rose to $21.2 million, including a $0.4 million nonrecurring technology write-off.

Outlook and guidance

• Management expects further improvement in financial performance in the second half of 2026, with continued balance sheet growth, net interest margin expansion, and fee income growth.

• Quarterly non-interest expense guidance set at $20–$21 million, with ongoing expense discipline.

• Opportunities for growth seen from market disruption and M&A activity, especially in Arizona.

• The company remains well capitalized and anticipates stable funding and liquidity positions.