第一西方金融股份有限公司2025年季度报告

For the quarterly period endedMarch31, 2025 company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company” and “emerging growth company” in Rule 12b-2 of theExchange Act. Non-accelerated fileroSmaller reporting company Financial Statements (Unaudited):Condensed Consolidated Balance Sheets Condensed Consolidated Statements of IncomeCondensed Consolidated Statements of Comprehensive IncomeCondensed Consolidated Statements of Changes in Shareholders’ EquityCondensed Consolidated Statements of Cash FlowsNotes to Condensed Consolidated Financial StatementsManagement’s Discussion and Analysis of Financial Condition and Results of OperationsQuantitative and Qualitative Disclosures about Market RiskControls and ProceduresPART II. OTHER INFORMATIONLegal ProceedingsRisk FactorsUnregistered Sales of Equity Securities and Use of ProceedsDefaults upon Senior SecuritiesMine Safety DisclosuresOther InformationExhibitsSIGNATURES2 Unless we state otherwise or the context otherwise requires, references in this Quarterly Report to "we," "our," "us," "theCompany" and "First Western" refer to First Western Financial, Inc. and its consolidated subsidiaries, including First Western Trust Bank, which we sometimes refer to as "the Bank" or "our Bank." The information contained in this Quarterly Report is accurate only as of the date of this Quarterly Report on Form 10-Q and 3 This Quarterly Report on Form 10-Q contains forward-looking statements. These forward-looking statements reflect ourcurrent views with respect to, among other things, future events and our financial performance. These statements are often, but notalways, made through the use of words or phrases such as "may," "should," "could," "predict," "potential," "believe," "will likelyresult," "expect," "continue," "will," "anticipate," "seek," "estimate," "intend," "plan," "projection," "would," and "outlook," or thenegative version of those words or other comparable words or phrases of a future or forward-looking nature. These forward-lookingstatements are not historical facts, and are based on current expectations, estimates and projections about our industry, management’sbeliefs and certain assumptions made by management, many of which, by their nature, are inherently uncertain and beyond ourcontrol, particularly with regard to developments related to soundness of other financial institutions. Accordingly, we caution you thatany such forward-looking statements are not guarantees of future performance and are subject to risks, assumptions and uncertaintiesthat are difficult to predict. Although we believe that the expectations reflected in these forward-looking statements are reasonable asof the date made, actual results may prove to be materially different from the results expressed or implied by the forward-lookingThere are or will be important factors that could cause our actual results to differ materially from those indicated in theseforward-looking statements, including, but not limited to, the following: •changes in the economy affecting real estate values and liquidity;•risks associated with higher inflation; •the accuracy of estimates and assumptions;•our ability to protect against and manage fraudulent activity, breaches of our information security, and cybersecurityattacks;•our reliance on communications, information, operating and financial control systems technology and related servicesfrom third-party service providers; •regulation of the financial services industry;•legal and regulatory proceedings, investigations and inquiries, fines and sanctions; Net gain on other real estate ownedUnrealized (gain) loss recognized on equity securities Net (gain) loss on loans accounted for under the fair value optionNet changes in operating assets and liabilities: Change in accrued interest receivable and other assetsChange in accrued interest payable and other liabilities Net cash provided by (used in) operating activities8,012Cash flows from investing activities Maturities, prepayments, and calls2,032Purchases of correspondent bank stock(110)Redemption of correspondent bank stock134Contributions to low-income housing tax credit investments(683) Loan and note receivable originations and principal collections, net2,602Purchases of premises and equipment(1,041)Proceeds from sale of loans—Purchases of loans(2,329)Proceeds from sale of other real estate owned32,003Net cash provided by investing activities32,608 Proceeds from Federal Home Loan Bank borrowings—Payments to Federal Reserve borrowings(426)Proceeds from Federal Reserve borrowings— Net cash used in financing activities(5,079)Net change in cash and cash equivalents35,541Cash and cash equivalents, beginning of year236,041Cash and cash equivalents, end of period$271,582$ Transfer of a redeemed subordinated note to other liabilities7,500Lease right-of-use-asset obtained in exchange for lease liabilities— See accompanying notes to condensed consolid