First Western Financial : 2Q23 Earnings Report Investor Presentation

Second Quarter 2023

Conference Call

Safe Harbor

This presentation contains "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements reflect the current views of First Western Financial, Inc.'s ("First Western") management with respect to, among other things, future events and First Western's financial performance. These statements are often, but not always, made through the use of words or phrases such as "may," "should," "could," "predict," "potential," "believe," "will likely result," "expect," "continue," "will," "anticipate," "seek," "estimate," "intend," "plan," "position," "project," "future" "forecast," "goal," "target," "would" and "outlook," or the negative variations of those words or other comparable words of a future or forward-looking nature. These forward-looking statements are not historical facts, and are based on current expectations, estimates and projections about First Western's industry, management's beliefs and certain assumptions made by management, many of which, by their nature, are inherently uncertain and beyond First Western's control. Accordingly, First Western cautions you that any such forward-looking statements are not guarantees of future performance and are subject to risks, assumptions and uncertainties that are difficult to predict. Although First Western believes that the expectations reflected in these forward-looking statements are reasonable as of the date made, actual results may prove to be materially different from the results expressed or implied by the forward-looking statements. The following risks and uncertainties, among others, could cause actual results and future events to differ materially from those set forth or contemplated in the forward- looking statements: integration risks in connection with acquisitions; the risk of geographic concentration in Colorado, Arizona, Wyoming, California, and Montana; the risk of changes in the economy affecting real estate values and liquidity; the risk in our ability to continue to originate residential real estate loans and sell such loans; risks specific to commercial loans and borrowers; the risk of claims and litigation pertaining to our fiduciary responsibilities; the risk of competition for investment managers and professionals; the risk of fluctuation in the value of our investment securities; the risk of changes in interest rates; and the risk of the adequacy of our allowance for credit losses and the risk in our ability to maintain a strong core deposit base or other low-cost funding sources. Additional information regarding these and other risks and uncertainties to which our business and future financial performance are subject is contained in our Annual Report on Form 10-K filed with the U.S. Securities and Exchange Commission ("SEC") on March 15, 2023 and other documents we file with the SEC from time to time. All subsequent written and oral forward- looking statements attributable to First Western or persons acting on First Western's behalf are expressly qualified in their entirety by this paragraph. Forward-looking statements speak only as of the date of this presentation. First Western undertakes no obligation to publicly update or otherwise revise any forward-looking statements, whether as a result of new information, future events or otherwise (except as required by law).

Certain of the information contained herein may be derived from information provided by industry sources. The Company believes that such information is accurate and the sources from which it has been obtained are reliable; however, the Company cannot guaranty the accuracy of such information and has not independently verified such information.

This presentation contains certain non-GAAP financial measures intended to supplement, not substitute for, comparable GAAP measures. Reconciliations of non-GAAP financial measures to GAAP financial measures are provided at the end of this presentation. Numbers in the presentation may not sum due to rounding.

Our common stock is not a deposit or savings account. Our common stock is not insured by the Federal Deposit Insurance Corporation or any governmental agency or instrumentality.

This presentation is not an offer to sell any securities and it is not soliciting an offer to buy any securities in any state or jurisdiction where the offer or sale is not permitted. Neither the SEC nor any state securities commission has approved or disapproved of the securities of the Company or passed upon the accuracy or adequacy of this presentation. Any representation to the contrary is a criminal offense. Except as otherwise indicated, this presentation speaks as of the date hereof. The delivery of this presentation shall not, under any circumstances, create any implication that there has been no change in the affairs of the Company after the date hereof.

2

Overview of 2Q23

	• Net income available to common shareholders of $1.5 million, or $0.16 per diluted share
	• Second quarter 2023 included net of tax impacts of $1.5 million related to an allowance recorded
2Q23 Earnings	on individually analyzed loans, $0.9 million of impairment to carrying value of contingent
consideration assets, and $0.8 million of losses on loans accounted for under the fair value option,
	with diluted EPS impacts, net of tax, of $0.15, $0.09, and $0.08, respectively
	• Pre-tax,pre-provision net income of $3.9 million(1)

Stable

Balance Sheet

• Total deposits relatively unchanged from end of prior quarter
• Noninterest-bearingdeposits increased during the month of June
• 4% annualized loan growth while maintaining conservative underwriting criteria and disciplined pricing

	• Strong relationship deposits and declining level of uninsured deposits to 30.8% from 37.3% in
	1Q23
Prudent	• Continued to maintain higher than normal level of cash balances
Risk Management	• NPAs/Total Assets declined 6 bps to 0.36%
	• Immaterial level of charge-offs

(1) See Non-GAAP reconciliation	3

Net Income Available to Common Shareholders and

Earnings per Share

• Net income of $1.5 million, or $0.16 diluted earnings per share, in 2Q23
• Including the impact of impairment to contingent consideration assets, adjusted net income(1) of $2.4 million in 2Q23
• Profitability and prudent balance sheet management resulted in book value and tangible book value per share(1) increasing by 5.5% and 6.7%, respectively, from 2Q22

Net Income Available to Common Shareholders

$7,000
	$6,337(1)
$6,000	$4,742(1)	$6,221	$5,617 (1)
$5,000		$5,471	(1)
$4,000	$4,482			$3,847
		$3,820
$3,000				(1)
				$2,440
$2,000
$1,000					$1,506
$-
Q2 2022	Q3 2022	Q4 2022	Q1 2023	Q2 2023
	Net Income	Adjustments to Net Income

Diluted Earnings per Share

$0.75
	$0.66 (1)	(1)
	$0.49(1)	$0.64	$0.58
$0.50	$0.56	(1)
	$0.46			$0.39
			$0.39
				(1)
$0.25					$0.25
				$0.16
$-
Q2 2022	Q3 2022	Q4 2022	Q1 2023	Q2 2023
	Net Income	Adjustments to Net Income

(1) See Non-GAAP reconciliation	4

Loan Portfolio

Loan Portfolio Details

• Total loans held for investment increased $26.8 million from prior quarter
• Growth driven by CRE loans and draws on existing construction lines
• Average rate on new loan production increased 23 bps to 7.41% compared to prior quarter, and was 7.79% in June

Loan Portfolio Composition(1)

($ in thousands, as of quarter end)		2Q 2022		1Q 2023		2Q 2023
Cash, Securities and Other	$	180,738	$	157,308	$	150,679
Consumer and Other		26,706		22,183		21,866
Construction and Development		162,426		283,999		313,227
1-4 Family Residential		732,725		889,782		878,670
Non-Owner Occupied CRE		489,111		536,679		561,880
Owner Occupied CRE		224,597		223,449		218,651
Commercial and Industrial		312,696		340,632		338,679
Total	$	2,128,999	$	2,454,032	$	2,483,652
Loans accounted for at fair value(2)		21,149		21,052		18,274
Total Loans HFI	$	2,150,148	$	2,475,084	$	2,501,926
Loans held-for-sale (HFS)		26,202		9,873		19,746
Total Loans	$	2,176,350	$	2,484,957	$	2,521,672

1. Represents unpaid principal balance. Excludes deferred (fees) costs, and amortized premium/ (unaccreted discount).
2. Excludes fair value adjustments on loans accounted for under the fair value option.

5

$3,200

$2,800

$2,400

$2,000

$1,600

$1,200

$800

$400

$-

Loan Production & Loan Payoffs

Total Loans(1)

$2,445

$2,487

$2,487

$2,485

$2,522

$2,253

$2,029

2Q22	3Q22	4Q22	1Q23	2Q23	1Q23	2Q23
		Average			Period End