First Western Financial Reports 127.3% Increase in Net Income for Q2 2025

First Western Financial, Inc. reported a significant increase in financial performance for the second quarter of 2025, with net income available to common shareholders rising to $2.5 million, a 127.3% increase from $1.1 million in the same period last year. For the first half of 2025, net income reached $6.7 million, up 86.1% from $3.6 million in the prior year. The company's income before income taxes also saw a substantial increase, reaching $3.3 million for the quarter and $8.7 million for the six months, driven primarily by a $2.1 million increase in net interest income and a decrease in provision for credit losses.

The company’s total assets grew to $3.03 billion as of June 30, 2025, up from $2.92 billion at the end of 2024. This growth was supported by a 4.7% increase in net loans, which rose to $2.52 billion, attributed to new loan production across various markets and loan types. Additionally, held-to-maturity debt securities increased by 31.8% to $99.8 million, reflecting strategic investments in collateralized mortgage obligations. The allowance for credit losses also saw a slight increase to $19.0 million, indicating a proactive approach to managing credit risk amid loan growth.

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 a total of $7.50 billion in assets under management (AUM) as of June 30, 2025, reflecting a 4.5% increase from the previous quarter, driven by favorable market conditions. However, the company experienced a decrease in non-interest income, primarily due to lower net gains on mortgage loans and trust and investment management fees, which were impacted by a shift in AUM to lower fee product categories.

Looking ahead, First Western Financial remains cautiously optimistic about its growth trajectory, despite the challenges posed by the current economic environment. The company is focused on maintaining a conservative credit appetite and ensuring a diversified client base to mitigate risks. Management believes that the financial strength of its clientele and the ongoing monitoring of credit quality will support continued stability and growth. The company is also committed to adhering to regulatory capital requirements, having maintained a well-capitalized status as of June 30, 2025.