First Western Financial Reports 128% Increase in Net Income for Q2 2026

First Western Financial, Inc. reported significant financial growth in its latest quarterly results, with net income available to common shareholders reaching $5.7 million for the three months ended June 30, 2026, a 128% increase from $2.5 million in the same period last year. For the first half of 2026, net income was $11.9 million, up 77.6% from $6.7 million in the prior year. The company's income before income taxes also saw a substantial rise, increasing to $7.4 million for the second quarter and $15.5 million for the first half, reflecting increases in net interest income and a decrease in provisions for credit losses.

The company's net interest income for the second quarter was $22.2 million, a 21.8% increase compared to the previous year, driven by a 23 basis point rise in net interest margin and a $322 million increase in average interest-earning assets. The total interest and dividend income rose to $41.9 million, up 11.6% year-over-year, while interest expense increased modestly to $20.1 million. The provision for credit losses saw a reversal, with a release of $0.5 million in the second quarter of 2026 compared to a provision of $1.8 million in the same quarter of 2025.

Operationally, First Western Financial has expanded its footprint, now operating 14 full-service profit centers across five states, including Colorado, Arizona, Wyoming, Montana, and California. The company reported total assets of $3.24 billion as of June 30, 2026, a 2.6% increase from $3.15 billion at the end of 2025. Total loans increased by 2.3% to $2.71 billion, with notable growth in the 1-4 family residential and owner-occupied commercial real estate portfolios. However, mortgage loans held for sale decreased by 38.6% to $24.7 million, attributed to timing in loan originations and sales.

The company’s total deposits increased by $99.4 million, or 3.6%, to $2.85 billion, primarily driven by growth in non-interest-bearing and money market deposit accounts. The allowance for credit losses decreased to $20.3 million, reflecting improved economic forecasts and paydowns on specific loans. First Western Financial remains well-capitalized, meeting all regulatory capital requirements, with a common equity tier 1 capital ratio of 11.37% as of June 30, 2026.

Looking ahead, First Western Financial anticipates continued growth in its wealth management and mortgage segments, supported by its strategic focus on high-net-worth clients and expanding service offerings. The company remains vigilant in managing credit risk and maintaining strong capital levels to navigate potential market fluctuations.