Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2025 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number 001-36461 FIRST FOUNDATION INC. (Exact name of Registrant as specified in its charter) Delaware 20-8639702 (St ...

Core Viewpoint - Monteverde & Associates PC is investigating the proposed sale of First Foundation Inc. to FirstSun Capital Bancorp, questioning the fairness of the deal where First Foundation shareholders will receive 0.16083 shares of FirstSun common stock for each share of First Foundation [1]. Group 1: Company Overview - Monteverde & Associates PC is recognized as a Top 50 Firm in the 2024 ISS Securities Class Action Services Report and has recovered millions for shareholders [1]. - The firm is located in the Empire State Building, New York City, and specializes in class action securities litigation [2]. Group 2: Transaction Details - Under the proposed transaction, First Foundation shareholders will receive 0.16083 shares of FirstSun common stock for each share of First Foundation [1]. - The investigation aims to determine if this exchange ratio represents a fair deal for shareholders [1].

Core Insights - First Foundation (FFWM) reported quarterly earnings of $0.16 per share, significantly exceeding the Zacks Consensus Estimate of $0.02 per share, marking an earnings surprise of +700% [1] - The company generated revenues of $63.6 million for the quarter ended September 2025, surpassing the Zacks Consensus Estimate by 2.74% and showing an increase from $61.06 million year-over-year [2] - The stock has underperformed the market, losing approximately 14.2% since the beginning of the year compared to the S&P 500's gain of 17.2% [3] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $0.05 on revenues of $64.15 million, and for the current fiscal year, it is $0.09 on revenues of $245.1 million [7] - The estimate revisions trend for First Foundation was favorable prior to the earnings release, resulting in a Zacks Rank 2 (Buy) for the stock, indicating expected outperformance in the near future [6] Industry Context - The Banks - Southwest industry, to which First Foundation belongs, is currently ranked in the top 14% of over 250 Zacks industries, suggesting a favorable outlook for stocks within this sector [8]

Financial Performance - First Foundation Inc. reported a net loss of $146.3 million for Q3 2025, translating to a loss per share of ($1.78) [2] - Total revenue for Q3 2025 was $63.6 million, an increase from $51.4 million in the prior quarter [8] - Net interest income decreased to $46.1 million in Q3 2025, down from $50.1 million in the previous quarter [8] - Noninterest income was $17.5 million for the quarter, a significant increase from $1.3 million in the prior quarter [29] - The net loss for Q3 2025 was $(146.323) million, compared to a net loss of $(82.174) million in Q3 2024, indicating worsening financial performance [48] - Basic and diluted net loss per share for Q3 2025 was $(1.78), compared to $(1.23) in Q3 2024 [49] - Adjusted net income attributable to common shareholders was $(146,125) thousand for the quarter ended September 30, 2025 [61] - Adjusted return on average assets was (4.90)% for the quarter ended September 30, 2025 [62] Credit Losses and Provisions - The company recorded a provision for credit losses of $65.0 million during the quarter, raising the allowance for credit losses to 1.40% of loans held for investment [7] - Provision for credit losses increased to $65.045 million in Q3 2025, compared to $282 thousand in Q3 2024, indicating a rise in expected credit losses [48] - The allowance for credit losses on loans held for investment was $101.9 million, or 1.40% of total loans held for investment [39] - The allowance for credit losses to loans held for investment was 1.40%, up from 0.50% in the previous quarter [50] Assets and Liabilities - Total assets increased to $11.91 billion as of September 30, 2025, from $11.59 billion as of June 30, 2025 [47] - Total liabilities rose to $10.99 billion as of September 30, 2025, compared to $10.54 billion as of June 30, 2025 [47] - Average assets totaled $11.9 billion for the current quarter, down from $12.2 billion in the prior quarter [16] - Total loans outstanding as of September 30, 2025, were $7,296,895, a decrease of 3.25% from $7,542,865 in the previous quarter [53] Deposits and Funding - Total deposits increased to $9.3 billion as of September 30, 2025, compared to $8.6 billion at the end of the previous quarter [8] - Deposits increased to $9.29 billion as of September 30, 2025, up from $8.59 billion as of June 30, 2025 [47] - The loan to deposit ratio was 83.6% as of September 30, 2025, compared to 93.4% as of June 30, 2025 [5] Efficiency and Costs - The efficiency ratio improved to 90.0% in Q3 2025, down from 116.0% in the previous quarter [2] - Customer service costs decreased to $9.1 million in Q3 2025, down from $13.0 million in the prior quarter [8] - Total noninterest expense for Q3 2025 was $57.482 million, slightly down from $60.225 million in Q3 2024 [48] Equity and Book Value - Shareholders' equity decreased to $917.9 million as of September 30, 2025, from $1,050.6 million as of June 30, 2025, primarily due to a net loss of $146.3 million for the quarter [42] - The tangible book value per common share was $10.02 as of September 30, 2025, down from $11.65 as of June 30, 2025, reflecting a decline of 14.0% [42] - Book value per common share decreased to $11.10 in Q3 2025 from $12.75 in Q2 2025, a decline of approximately 13.0% [65] Mergers and Future Outlook - First Foundation announced a merger with FirstSun Capital Bancorp, expected to create a combined entity with $17 billion in assets [3] - The forward-looking statements indicate potential risks including credit losses and changes in economic conditions that could impact future financial performance [44]

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Transaction Overview - FirstSun Capital Bancorp (FSUN) will acquire First Foundation Inc (FFWM) in a 100% stock transaction, with FFWM stockholders receiving 016083 shares of FSUN for each FFWM share[36] - The aggregate deal value is approximately $785 million[36] - The combined entity is projected to have approximately $17 billion in pro forma total assets[20] - The pro forma combined Southwest branch footprint will include 70 existing Sunflower Bank branches and 22 First Foundation branches[22] Financial Highlights - The transaction is expected to result in over 30% EPS accretion by 2027[20] - The combined company is projected to achieve a 2027E Return on Average Tangible Common Equity (ROATCE) of 133% and a Return on Average Assets (ROAA) of 145%[20] - Pro forma tangible common equity to tangible assets (TCE/TA) is projected to be 96%[20] Strategic Rationale - The merger will accelerate FirstSun's expansion strategy in Southern California (SoCal)[19] - A balance sheet re-positioning plan aims to unlock First Foundation's core franchise by reducing risk[23] - The combined company will have a presence in 8 of the top 10 largest MSAs in the Central & Western US[27] Balance Sheet Adjustments - Approximately $34 billion in on-balance sheet downsizing is expected to be completed concurrent with closing[36] - The re-positioning plan includes reducing approximately $856 million of brokered deposits and approximately $11 billion of higher-rate/non-relationship deposits[52]

Core Viewpoint - Halper Sadeh LLC is investigating the fairness of the merger between FirstSun Capital Bancorp and First Foundation Inc. for FirstSun shareholders, who will own 59.5% of the combined entity upon completion of the transaction [1]. Group 1: Investigation Details - The investigation focuses on whether FirstSun and its board violated federal securities laws or breached fiduciary duties by not obtaining the best possible consideration for shareholders and failing to disclose all material information necessary for assessing the merger [3]. - Halper Sadeh LLC may seek increased consideration for shareholders, additional disclosures, and other relief related to the proposed transaction [4]. Group 2: Legal Rights and Contact Information - FirstSun shareholders are encouraged to contact Halper Sadeh LLC to learn about their legal rights and options regarding the merger [2]. - The firm operates on a contingent fee basis, meaning shareholders would not incur out-of-pocket legal fees or expenses [4].

Core Points - The Ademi Firm is investigating First Foundation for potential breaches of fiduciary duty and other legal violations related to its transaction with FirstSun [1][3] - In the transaction, First Foundation shareholders will receive 0.16083 shares of FirstSun common stock for each share of First Foundation stock owned, resulting in FirstSun stockholders owning 59.5% and First Foundation stockholders owning 40.5% of the combined company [2] - The transaction includes $17.5 million in cash consideration for warrant holders, and First Foundation insiders will continue to receive substantial benefits as part of change of control arrangements [2] Transaction Details - The transaction agreement imposes significant penalties on First Foundation if it accepts a competing bid, which raises concerns about the board of directors' fulfillment of their fiduciary duties to all shareholders [3]

Core Viewpoint - FirstSun Capital Bancorp is set to acquire First Foundation in an all-stock transaction valued at $785 million, indicating a trend of increasing mergers and acquisitions among regional banks amid ongoing credit conditions [1] Group 1: Acquisition Details - The acquisition deal is structured as an all-stock transaction [1] - The total value of the deal is reported to be $785 million [1] Group 2: Industry Context - The announcement reflects a broader trend of accelerating mergers and acquisitions within the regional banking sector [1] - This trend is occurring against a backdrop of challenging credit conditions [1]

Core Viewpoint - FirstSun Capital Bancorp and First Foundation Inc. have announced a definitive merger agreement, indicating a strategic move to enhance their market presence and operational capabilities in the financial services sector [1]. Group 1: Company Overview - FirstSun Capital Bancorp is the holding company for Sunflower Bank, N.A., based in Dallas [1]. - First Foundation Inc. operates two wholly-owned subsidiaries: First Foundation Advisors and First Foundation Bank, located in Irvine, California [1]. Group 2: Merger Details - The merger between FirstSun Capital Bancorp and First Foundation Inc. is positioned as a significant development in the financial services industry, aiming to leverage combined resources and expertise [1].