First Western Financial : 4Q20 Earnings Report Investor Presentation

First Western Financial, Inc.

The First, Western-Based Private Trust Bank

Fourth Quarter 2020 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," "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. Those 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: the COVID-19 pandemic and its effects; integration risks in connection with acquisitions; the risk of geographic concentration in Colorado, Arizona, Wyoming and California; 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 loan 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 12, 2020 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.

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Overview of 4Q20

			Net income available to common shareholders of $4.9 million, or $0.61 diluted
	Strong
		EPS, up 88.6% from 4Q19
	Year-Over-Year
		Gross revenue(1) of $23.4 million, up 44.2% from 4Q19
	Revenue and
	Earnings Growth		Strong performance and completed sale of LA fixed income team resulted in
			25.0% increase in TBV/share from 4Q19
		 Commercial banking initiative resulting in strong growth in commercial
			relationships, loans and deposits
	Balance Sheet
	Growth Driving		 Total loans held-for-investment (HFI) increased 6.0% from 3Q20 (excluding
	Higher Spread		Paycheck Protection Program (PPP) loan runoff)
	Income		 Total deposits increased 3.6% from 3Q20
			Net interest income up 4.2% from 3Q20 and 64.3% from 4Q19
			Net gain on mortgage loans of $4.3 million, up 67.6% from 4Q19
	Continued Strong
		Seasonal slowdown and operational constraints reduced contribution of mortgage
	Mortgage Activity
		business relative to earlier in 2020

Positive Trends in

Asset Quality

• Non-performingassets declined by 59.3% from end of prior quarter to just 0.22% of total assets
• COVID-19loan modifications represented just 0.1% of total loans at December 31, 2020
• History of exceptionally low charge-offs continues

(1) See Non-GAAP reconciliation	3

Net Income Available to Common Shareholders and Earnings per Share

• Net income of $4.9 million, or $0.61 diluted earnings per share, in 4Q20
• Balance sheet growth and increasing operating leverage continue to build sustainable path to improving profitability and returns
• Sale of LA fixed income team resulted in a valuation allowance that increased 4Q20 effective tax rate, negatively impacting EPS by $0.05

Net Income Available to Common Shareholders		Diluted Earnings per Share

(in thousands)

											$9,630												$1.13(1)	$1.21
							$8,941 (1)
																									$0.03
									$245
												$4,874															$0.61
	$2,572	$1,772 (1)								$0.32		$0.22 (1)
					$438															$0.05
	Q4 2019		Q1 2020			Q2 2020	Q3 2020		Q4 2020				Q4 2019		Q1 2020			Q2 2020	Q3 2020		Q4 2020
			Net Income		Adjustments to Net Income						Net Income		Adjustments to Net Income

(1) See Non-GAAP reconciliation	4