First Western Financial Reports 52.4% Increase in Quarterly Net Income

First Western Financial, Inc. reported significant financial growth in its latest quarterly results, with net income available to common shareholders reaching $3.2 million for the three months ended September 30, 2025, a 52.4% increase from $2.1 million in the same period last year. The company’s income before income taxes also rose to $4.0 million, up 48.4% from $2.7 million in the prior year. This growth was primarily driven by a $3.9 million increase in net interest income, which was partially offset by a $1.8 million rise in the provision for credit losses and a $0.7 million increase in non-interest expenses.

For the nine months ended September 30, 2025, First Western reported net income of $9.9 million, a 73.7% increase from $5.7 million in the same period of 2024. The income before income taxes for this period was $12.6 million, reflecting a 64.9% increase from $7.7 million in the previous year. The increase in net interest income for the nine-month period was attributed to a $7.4 million rise, driven by a 27 basis point increase in net interest margin and growth in average interest-earning assets.

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 September 30, 2025, an 11% increase from $2.92 billion at the end of 2024. Total loans, net of allowance for credit losses, increased by 6.8% to $2.57 billion, while total deposits rose by 13.3% to $2.85 billion, primarily driven by growth in money market accounts.

The company’s allowance for credit losses increased to $20.97 million as of September 30, 2025, up from $18.33 million at the end of 2024, reflecting the growth in the loan portfolio and specific reserves for individually analyzed loans. First Western's capital ratios remain strong, with the Bank classified as "well capitalized" under regulatory guidelines. The company continues to monitor its credit quality, with non-accrual loans totaling $18.1 million, representing 0.70% of total loans, a slight increase from the previous year.

Looking ahead, First Western Financial anticipates continued growth in its loan portfolio and overall financial performance, supported by its strategic focus on high-net-worth clients and the expansion of its wealth management services. The company remains committed to maintaining its strong capital position and managing credit risk effectively in a changing economic environment.