First Western Financial (MYFW) investor relations material

Executive summary

• Net income available to common shareholders rose to $6.2 million ($0.63 per diluted share), up 85% quarter-over-quarter and 47% year-over-year, marking the third consecutive quarter of increased net income and EPS.

• Pre-tax, pre-provision net income rose 38% sequentially and 36% year-over-year.

• Profitability improved due to positive trends in loans, deposits, net interest income, and asset quality, supported by disciplined expense management.

• Book value and tangible book value per share increased during the quarter, reflecting prudent balance sheet management.

Financial highlights

• Net income reached $6.2 million ($0.63 per diluted share), with gross revenue up 3.4% sequentially to $27.6 million and net interest income rising 1.5% quarter-over-quarter and 19.7% year-over-year to $20.9 million.

• Non-interest income grew by $600,000 (9.5%) to $6.7 million, led by mortgage origination, insurance, and higher trust and investment management fees.

• Non-interest expense decreased by $1.1 million (5.2%) to $20.2 million, aided by the absence of prior OREO write-downs and lower professional services costs.

• Efficiency ratio improved for the sixth consecutive quarter, now at 73.1% from 79% a year ago.

• Net interest margin expanded by 10 bps to 2.81% sequentially and 20 bps year-over-year.

Outlook and guidance

• Management expects continued strong financial performance, supported by robust loan and deposit pipelines and healthy economic conditions in core markets.

• Loan and deposit growth projected at high single digits to around 10% for the year, with further, though moderating, NIM expansion and ongoing operating leverage from disciplined expense control.

• No signs of asset quality deterioration expected; positive trends anticipated to continue.

• Targeting ROA above 1% and ROE in the low teens.