First Western Financial : Investor Presentation November 2019

First Western Financial, Inc.

The First, Western-Based Private Trust Bank

Investor Presentation

November 2019

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's 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," "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. 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. We undertake 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.

Our common stock is not a deposit or savings account. Our common stock is not insured by the Federal Deposit Insurance Corporation or any governmental agency or instrumentality.

This presentation is not an offer to sell any securities and it is not soliciting an offer to buy any securities in any state or jurisdiction where the offer or sale is not permitted. Neither the SEC nor any state securities commission has approved or disapproved of the securities of the Company or passed upon the accuracy or adequacy of this presentation. Any representation to the contrary is a criminal offense. Except as otherwise indicated, this presentation speaks as of the date hereof. The delivery of this presentation shall not, under any circumstances, create any implication that there has been no change in the affairs of the Company after the date hereof.

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A Wealth Manager on Private Trust Bank Platform

		Niche-focused regional wealth manager built
		on a private trust bank platform
Overview		Headquartered in Denver, Colorado and
		positioned in desirable, affluent and high
		growth markets

	 Households of $1+ million liquid net worth
Target Market		High net worth and high growth markets
		Colorado, Arizona, Wyoming and California

WY

CA CO

AZ

Competitive Advantage

• Operates as one integrated firm, not silos
• Team approach benefits clients, First Western
• Local boutique private trust bank offices with central product experts

• Office Locations

First Western Financial, Inc. (FW)

Financial Holding Company

First Western Trust Bank

		Assets:	$1.27 billion
		Gross Loans:	$926.6 million
Company Highlights		Total Deposits:	$1.11 billion
	AUM:	$6.12 billion
as of 9/30/2019
		CET1 Ratio:	11.73%
		Tier 1 Ratio:	11.73%
		Leverage Ratio:	8.76%
		TRBC Ratio:	13.36%

Colorado state chartered bank (14 locations)

First Western Merger Corporation

State licensed insurance agency

First Western Capital Management Co.

Registered investment advisor (1 location)

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MYFW: Our Five Core Strengths

Differentiated,

Proven in the

Marketplace

• Niche-focused franchise headquartered in Denver, Colorado
• Well-positionedin many attractive markets in Arizona, California, Colorado and Wyoming
• Specialized central expertise to compete with siloed national, regional firms
• Delivered through local, boutique trust banking teams so clients "owned" by MYFW, not associates

		Strong profit center margins at maturity, growth opportunities in current and new markets
Built in Operating		Revenue growth in both fee income and net interest income, with liability sensitive balance sheet
Leverage		Scalable, leverageable high fixed cost Product and Support Centers
	 Operating expense investment already in place for growth and expansion
	 ~50% fee income, consistently through MYFW history
Highly Desirable
	Primarily recurring trust and investment management ("TIM") fees
Recurring Fee
	Low risk, "sticky" wealth/trust business with comprehensive product offering
Income
	Multiple entry points with ConnectView® - proprietary review process to service, cross-sell

Experienced, Tested Team

• Executives are major bank/professional firm trained, with deep relationships in communities
• Achieved growth through business and economic cycles, capital constraints
• Healthy relationship with all regulators with strong risk management culture
• CEO with proven track record for creating value in previous bank ownership

		At critical mass but small market share, many current and new market opportunities
Unique Opportunity		Proven ability to expand: (1) Organically, (2) By expansion and (3) By acquisition
for Investors		Few large Colorado bank alternatives for investors and clients, creating lift-outopportunities
		MYFW was capital constrained: IPO provided growth capital, paid off high cost capital, debt

First Western's core strengths provide the foundation for driving shareholder value	4

Rationale for Starting First Western

Competition is Everyone and No One

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