First Western Financial : Investor Presentation November 2020

First Western Financial, Inc.

The First, Western-Based Private Trust Bank

Investor Presentation

November 2020

Those following risks and uncertainties, among others, could cause actual results and future events to differ materially from those set forth or contem

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; integration risks in connection with acquisitions; the risk of geographic concentration in Colorado, Arizona, Wyoming and California; the risk of changes in the economy affecting real estate values and liquidity; the risk in our ability to continue to originate residential real estate loans and sell such loans; risks specific to commercial loans and borrowers; the risk of claims and litigation pertaining to our fiduciary responsibilities; the risk of competition for investment managers and professionals; the risk of fluctuation in the value of our investment securities; the risk of changes in interest rates; and the risk of the adequacy of our allowance for credit losses and the risk in our ability to maintain a strong core deposit base or other low-cost funding sources. 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, 2020 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.

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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
			 Operates as one integrated firm, not silos
	Competitive			Team approach benefits clients, First Western
	Advantage			Local boutique private trust bank offices with
				central product experts
				Assets:	$1.97 billion
				Gross Loans:	$1.51 billion
	Company Highlights			Total Deposits:	$1.56 billion
			AUM:	$6.13 billion
	as of 9/30/2020
				Tier 1 Ratio:	9.88%
				CET 1 Ratio:	9.88%
				Leverage Ratio:	7.52%
				TRBC Ratio:	12.03%

• Office Locations

First Western Financial, Inc. (FW)

Financial Holding Company

First Western Trust Bank

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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Great Markets, Scarce Investment Opportunity

First Western Market Favorability(1)

• Colorado (2019)
• • #4 fastest growing state with GDP CAGR of 3.6% (2014-2018)
  • #4 best state economy (Business Insider)
  • #8 best state for business (Forbes)
• Denver, Colorado (2019)
• • #3 best large city to start a business
  • #5 highest job growth among major cities (2010-2018)
  • #7 highest gross metro product among major cities (2012-2017)
• Fort Collins, Colorado (2019)
• • Gross metro product CAGR of 6.2% (2013-2018)
  • Manufacturing for Anheuser-Busch, Broadcom, Intel
• Phoenix, Arizona (2018)
• • Added nearly 100,000 residents from July 2017-July 2018
  • Second fastest growing metro in the U.S.

Colorado Chartered Banks (Assets > ~$2.0 billion)

		Total Assets
As of September 30, 2020	Current Ownership	($bn)
FirstBank	Private	23.5
NBH Bank	Public (NYSE: NBHC)	6.6
Bank of Colorado	Private (Sub. of Pinnacle Bancorp-NE)	5.3
Alpine Bank	Private	5.1
Sunflower Bank	Private	4.9
ANB Bank	Private	3.2
Citywide Banks	HTLF (Acquired in 2017)	2.6
First Western Trust Bank	Public (Nasdaq: MYFW)	2.0

1. Source: 2019 Downtown Denver Partnership Report; Raymond James research; Ft. Collins Chamber of Commerce; City of Phoenix; U.S. Census Bureau
2. Source: S&P Global Market Intelligence as of 06/30/2020.
3. Percentage growth in household income (HHI).

Note: Demographic data provided by Claritas per US Census data.

		Deposits by MSA(2)
			Fort Collins,
Deposits by State
			CO
Colorado	83%		14%
Arizona	15%
Wyoming	2%	Phoenix, AZ	Boulder, CO
		12%
		15%

Glenwood

Springs, CO

2%

Jackson, WY

Denver, CO2%

55%

		Market	Projected % Change
MSA	State	Share	in HHI (2021-2026)(3)
Denver-Aurora-Lakewood	CO	0.73	11.00
Fort Collins	CO	2.03	13.45
Phoenix-Mesa-Scottsdale	AZ	0.15	13.18
Boulder	CO	1.40	11.41
Jackson	WY/ID	1.12	8.50
Glenwood Springs	CO	0.80	8.82
National Average				9.01

Small market share and growing household income means lots of room to grow

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