First Western Financial Surpasses Expectations with Strong Q2 2026 Results

First Western Financial, a leading financial institution, has released its second-quarter 2026 earnings report, showcasing impressive growth across various key performance indicators. The company's prudent risk management strategies and conservative new loan production practices have yielded healthy loan production, diversified across markets, industries, and loan categories.

According to Scott Wylie, Chairman and Chief Executive Officer, the company executed well in the second quarter, achieving positive trends in deposit growth, net interest margin expansion, well-managed expenses, and stable asset quality. This resulted in another quarter of solid profitability, with net income reaching $6.7 million or $0.57 per diluted share, a 129% and 119% increase from the year-ago period.

One notable highlight is the company's deposit growth, which increased by 12.6% on a year-over-year basis, driven by strong money market account deposits and non-interest-bearing deposits that grew by $18 million or 5.1%. The average rate on new loan production also improved to 6.37%, six basis points higher than the previous quarter, while maintaining discipline in pricing.

First Western Financial's trust and investment management business has also seen significant growth, with assets under management increasing by $41 million in the second quarter. Investment agency AUM grew by $91 million in the quarter and $122 million on a year-over-year basis, representing the company's highest fee category. This is attributed to improving market conditions and highlights the company's expertise in trust and investment management.

The company's balance sheet management strategies have further strengthened its tangible book value per share, which increased by 2.6% this quarter to $25.53. Scott Wylie emphasized that the company continues to maintain prudent risk management and conservative new loan production practices, supported by good economic activity across their markets.

Julie Courkamp, Chief Operating Officer, discussed the trends in First Western Financial's loan portfolio, noting that loans held for investment increased $23 million from the end of the prior quarter, marking the fifth consecutive quarterly increase. The company remains disciplined and conservative in its new loan production, with a focus on relationship-based lending.

David Weber, Chief Financial Officer, will cover the trust and investment management trends, highlighting the 5% growth in fees due to improving market conditions. This strong performance demonstrates First Western Financial's ability to adapt to changing market conditions while maintaining its commitment to conservative risk management and disciplined growth strategies.