First Western Financial reported net income available to common shareholders of $3.3 million in the fourth quarter of 2025, up from $3.2 million in Q3 2025 and $2.7 million in Q4 2024. Diluted earnings per share rose to $0.34, compared to $0.32 in the prior quarter and $0.28 a year ago. Return on average assets improved to 0.42% (annualized) from 0.40%, while return on average shareholders’ equity increased to 5.06% (annualized) from 4.92%. The company’s efficiency ratio tightened to 74.9%, reflecting well-managed non-interest expenses relative to revenue growth.

Net interest margin expanded by 17 basis points sequentially to 2.71%, driven by a 20 basis-point decline in cost of funds to 3.03% that more than offset a slight 3 basis-point drop in asset yields. Net interest income rose 5.6% quarter-over-quarter to $20.6 million. Total loans held for investment climbed 2.3% to $2.65 billion, fueled by growth in owner-occupied and non-owner-occupied commercial real estate. Loan demand remained robust under disciplined underwriting, with the loan pipeline described by management as ‘‘strong,’’ positioning the bank for continued revenue momentum.

Provision for credit losses decreased to $0.9 million from $2.3 million in Q3, reflecting stable asset quality and lower net charge-offs. Non-interest expense increased 6.0% to $21.3 million due to an $1.4 million write-down on other real estate owned and higher professional services, partially offset by savings in occupancy and employee benefits. Total deposits stood at $2.75 billion, down 3.5% from Q3 due to seasonal operating account fluctuations, while wholesale borrowings rose by $11.9 million to $62.8 million to support loan growth. Tangible book value per share rose during the quarter, underpinning the company’s capital strength and readiness for future expansion.