First Western reported net income available to common shareholders of $6.2 million for the quarter ended March 31, 2026, up from $3.3 million in Q4 2025 and $4.2 million in Q1 2025. Diluted earnings per share rose to $0.63, compared with $0.34 in Q4 and $0.43 a year earlier. Total revenue net of interest expense reached $27.5 million, marking a beat against consensus.

Net interest margin improved by 10 basis points to 2.81%, driven by a 13-basis point reduction in cost of funds to 2.90% partially offset by a 2-basis point drop in yield on interest-earning assets. Net interest income increased 1.5% to $20.9 million, while non-interest income rose 9.8% to $6.7 million from the prior quarter.

Total deposits grew by $95 million, or 3.5%, to $2.84 billion at quarter-end, reflecting steady inflows into money market and time deposit accounts. The provision for credit losses released $0.7 million compared to a $0.9 million provision in Q4, supporting an overall reduction in credit costs and improved asset quality.

Management noted strong loan and deposit pipelines fueled by healthy demand and disciplined underwriting. The company expects continued growth in book value and profitability as positive trends in net interest income and expense management persist through 2026.