First Western Financial Reports 47.6% Increase in Net Income for Q1 2026

First Western Financial, Inc. reported a significant increase in its financial performance for the first quarter of 2026, with net income available to common shareholders rising to $6.2 million, a 47.6% increase from $4.2 million in the same period last year. The company's income before income taxes also saw a substantial increase of 51.3%, reaching $8.1 million compared to $5.4 million in the prior year. This growth was primarily driven by a $3.4 million increase in net interest income, attributed to a 20 basis point rise in net interest margin and an increase in average interest-earning assets.

Total assets for First Western increased by 2.7% to $3.24 billion as of March 31, 2026, up from $3.15 billion at the end of 2025. The growth in assets was supported by a $95 million increase in total deposits, which reached $2.84 billion, driven by increases in non-interest-bearing and money market deposit accounts. The company’s loan portfolio also expanded, with net loans increasing by 1.5% to $2.67 billion, primarily due to growth in the 1-4 family residential and commercial and industrial segments.

In terms of operational developments, First Western's assets under management (AUM) totaled $7.24 billion, reflecting a slight decrease from $7.18 billion a year earlier. The company continues to focus on its wealth management services, which include private banking, investment management, and trust services. The firm operates through a network of 14 full-service profit centers across five states, with a strategic emphasis on affluent markets.

The company’s allowance for credit losses (ACL) decreased to $20.8 million from $21.4 million, reflecting improved credit quality and a release of provision for credit losses due to a resolution of an individually analyzed loan. The non-performing assets, which include non-accrual loans and other real estate owned, decreased to $16.3 million from $19.6 million, primarily due to the sale of the last remaining OREO property.

Looking ahead, First Western Financial remains optimistic about its growth trajectory, supported by its strategic focus on high-net-worth clients and continued expansion in its service offerings. The company is well-capitalized, meeting all regulatory capital requirements, and is positioned to navigate the evolving economic landscape while maintaining its commitment to delivering high-quality financial services.