First Western Financial : 2021 KBW Conference Investor Presentation

2021 KBW Community Bank Investor Conference

August 2021

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 Financial, Inc.'s ("First Western") 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," "future" "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. Those following risks and uncertainties, among others, could cause actual results and future events to differ materially from those set forth or contemplated in the forward-looking statements: the COVID-19 pandemic and its effects; the occurrence of any event, change or other circumstances that could give rise to the right of one or both of the parties to terminate the definitive merger agreement between First Western and Teton Financial Services, the outcome of any legal proceedings that may be instituted against First Western or Teton Financial Services, delays in completing the transaction, the failure to obtain necessary regulatory approvals (and the risk that such approvals may result in the imposition of conditions that could adversely affect the combined company or the expected benefits of the transaction) and shareholder approval or to satisfy any of the other conditions to the transaction on a timely basis or at all, the possibility that the anticipated benefits of the transaction are not realized when expected or at all, including as a result of the impact of, or problems arising from, the integration of the two companies or as a result of the strength of the economy and competitive factors in the areas where First Western and Teton Financial Services do business, the possibility that the transaction may be more expensive to complete than anticipated, including as a result of unexpected factors or events, diversion of management's attention from ongoing business operations and opportunities, potential adverse reactions or changes to business or employee relationships, including those resulting from the announcement or completion of the transaction, First Western's ability to complete the acquisition and integration of Teton Financial Services successfully, and the dilution caused by First Western's issuance of additional shares of its common stock in connection with the transaction. Additional information regarding these and other risks and uncertainties to which our business and future financial performance are subject is contained in our Annual Report on Form 10-K filed with the U.S. Securities and Exchange Commission ("SEC") on March 12, 2021 and other documents we file with the SEC from time to time. 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. Forward-looking statements speak only as of the date of this presentation. First Western undertakes 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.

Additional Information about the Acquisition and Where to Find It

In connection with the proposed acquisition, First Western will file with the Securities and Exchange Commission (the "SEC") a registration statement on Form S-4 to register the shares of First Western common stock to be issued to the shareholders of Teton Financial Services. The registration statement will include a proxy statement/prospectus which will be sent to the shareholders of Teton Financial Services seeking their approval of the acquisition and related matters. In addition, First Western may file other relevant documents concerning the proposed acquisition with the SEC.

SHAREHOLDERS OF TETON FINANCIAL SERVICESARE URGED TO READ THE REGISTRATION STATEMENT ON FORM S-4 AND THE PROXY STATEMENT/PROSPECTUS INCLUDED WITHIN THE REGISTRATION STATEMENT AND ANY OTHER RELEVANT DOCUMENTS TO BE FILED WITH THE SEC IN CONNECTION WITH THE PROPOSED ACQUISITION BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION ABOUT FIRST WESTERN, TETON FINANCIAL SERVICES AND THE PROPOSED TRANSACTION.

Investors and shareholders may obtain free copies of these documents through the website maintained by the SEC at www.sec.gov. Free copies of the proxy statement/prospectus also may be obtained by directing a request by telephone or mail to First Western Financial, Inc., 1900 16th Street , Suite 1200, Denver CO, 80202 , Attention: Investor Relations (telephone: [phone]), or by accessing First Western's website at www.myfw.com under "Investor Relations." The information on First Western's website is not, and shall not be deemed to be, a part of this release or incorporated into other filings it makes with the SEC.

Participants in the Solicitation

First Western, Teton Financial Services, Inc. and their respective directors and executive officers may be deemed to be participants in the solicitation of proxies from the shareholders of Teton Financial Services in connection with the acquisition. Information about the directors and executive officers of First Western is set forth in the proxy statement for First Western's 2021 annual meeting of shareholders filed with the SEC on April 29, 2021. Additional information regarding the interests of these participants and other persons who may be deemed participants in the acquisition may be obtained by reading the proxy statement/prospectus regarding the acquisition when it becomes available.

2

Overview

Target Market

Competitive

Advantage

An Emerging High Performing Institution

• Niche-focusedregional wealth manager built on a private trust bank platform
• Headquartered in Denver, Colorado and positioned in desirable, affluent and high growth markets
• Households of $1+ million liquid net worth
• High net worth and high growth markets
• Colorado, Arizona, Wyoming, California and Montana
• Operates as one integrated firm, not silos
• Team approach benefits both clients and First Western

 Local boutique private trust bank offices with central product experts

Office Locations

Company Highlights

	(as of 6/30/21)
	Assets:	$2.01 billion
	Total Loans:	$1.62 billion
	Total Deposits:	$1.68 billion
	AUM:	$6.76 billion
	(for the year ending 12/31/20)
	Loan Growth:	53.9%
	Deposit Growth:	49.1%
	Asset Growth:	57.7%
	ROAA:	1.48%

3

First Western Financial, Inc. (FW)

Financial Holding Company

First Western Trust Bank

Colorado state chartered bank

(16 locations)

First Western Merger Corporation

State licensed insurance agency

		Investment Highlights
	 Rapidly growing institution operating in high growth markets
Attractive
	Diverse sources of recurring fee income that represent 50%+ of total revenue
Markets and		Attractive, stable deposit base with noninterest-bearing and money market accounts comprising 83%
Business Model		of total deposits
	 Conservative underwriting and affluent client base results in exceptional asset quality with minimal credit losses
	 Significant revenue growth driving improved operating leverage and higher profitability
Strong Earnings	 TBV/share(1) increased 25% in 2020
	Continued scale expected to drive further leverage and generate returns consistent with a high performing
Momentum
	institution over long term

 Pending acquisition of Teton Financial Services, Inc. provides additional catalyst for earnings growth in 2022

Proven Execution

on Growth

Strategies

• Track record of generating organic growth, expansion and acquisitions
• Total assets up 58% in 2020 with substantial increases in revenue and EPS
• Strengthening commercial banking platform creating more diverse loan portfolio and lower-cost deposit base

High Insider

Ownership and

Discounted

Valuation

• Highly aligned with shareholder interests as insiders own ~22% of total shares outstanding
• Discounted valuation trading at just 1.5x TBV/share(2)

(1)	See Non-GAAP reconciliation	4
(2)	As of July 23, 2021

Strong Operational and Financial Momentum

Drivers of Improved Performance

• Robust balance sheet growth
• Higher fee income driven by strengthened mortgage team
• Consistent new client acquisition activity driving growth in assets under management
• Highly leverageable operating platform driving improved efficiencies
• Outstanding asset quality and low credit costs

2016-2020Pre-Tax,Pre-Provision Income(1) ($000s)

$40,000

$37,745

$35,000

$30,000

$25,000

$20,000

$15,000

$10,854

$10,000	$4,556	$5,795	$7,602
$5,000
$0
2016	2017	2018	2019	2020

(1) See Non-GAAP reconciliation	5