MYFW · First Western Financial, Inc.

First Western Financial, Inc. delivered a strong first quarter in 2026, marked by a significant turnaround in profitability and continued balance sheet optimization. Net income available to common shareholders rose to $6.2 million, or $0.63 per diluted share, representing an 85% sequential increase. This improvement was driven by a combination of expanding net interest margin, disciplined expense management, and a release in credit loss provisions. The net interest margin expanded 10 basis points to 2.81%, primarily attributable to a 13 basis point decrease in the cost of funds, which outpaced a slight 2 basis point decline in the yield on interest-earning assets. Management noted that the reduction in funding costs resulted from lowering deposit rates in line with prior short-term rate decreases. Balance sheet trends were positive, with total deposits increasing 3.5% to $2.84 billion, driven by growth in noninterest-bearing and money market accounts. Loan growth was modest but steady, with total loans held for investment rising 1.5% to $2.69 billion. Asset quality metrics showed notable improvement; non-performing assets decreased to 0.50% of total assets from 0.62% in the prior quarter, largely due to the sale of the company's last remaining OREO property. The efficiency ratio improved to 73.11% from 74.88%, reflecting controlled non-interest expenses. Tangible book value per share increased 3.3% to $24.87. Management expressed optimism regarding continued strong financial performance, citing healthy loan demand and strong pipelines moving through 2026.