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 March 31, 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 (State ...

Financial Data and Key Metrics Changes - The company reported a net income of $6.9 million or $0.08 per share, returning to profitability after a net loss of $14.1 million in the previous quarter [4] - Net interest margin expanded by nine basis points to 1.67%, with a significant reduction in provision expense and a $5 million decrease in non-interest expense compared to the fourth quarter [5][10] - Pre-provision net revenue increased to $9.7 million or $0.11 per share, compared to a loss of $2.3 million in the previous quarter [12] Business Line Data and Key Metrics Changes - The company funded $180 million in new loan balances at an average yield of 7.09%, with approximately 78% being commercial and industrial (C and I) loans [5] - Loans held for investment decreased primarily due to $354 million in payoffs, while loans held for sale remained unchanged at $1.3 billion [5] - Total non-interest income was $19.6 million, including a $4.7 million gain on the sale of securities [15] Market Data and Key Metrics Changes - Assets under management decreased to $5.1 billion from $5.4 billion at the end of the previous year, while trust assets under advisement increased to $1.2 billion from $1.1 billion [9] - Overall deposits declined to $9.6 billion, primarily due to a $400 million decrease in high-cost brokered deposits [9] Company Strategy and Development Direction - The company is focused on reducing its commercial real estate concentration and selectively exiting lower-yielding multifamily loans [5] - A strategic plan is in place to remix the loan portfolio, improve interest rate risk management, and grow non-interest income through various channels [8] - The company aims to improve sustainable profitability over the intermediate term, with expectations for net interest margin to reach between 1.8% and 2.2% by the end of 2026 [20] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the financial future, highlighting strong capitalization, ample liquidity, and a focus on unlocking embedded value in the franchise [21] - The company anticipates a modest reduction in total assets as it works to reduce loans held for sale to zero and improve its deposit mix [20] - Management noted that while there is some hesitancy in capital expenditures among clients, there are also opportunities for growth in certain markets [27] Other Important Information - The company remains well-capitalized with a common equity Tier one ratio of 10.6% and a Tier one leverage ratio of 8.1% [19] - The tangible book value per share increased to $9.42 from $9.36 in the prior quarter [19] Q&A Session Summary Question: How have utilization rates trended thus far in 2025? - Management noted some hesitancy among clients regarding capital expenditures, but some clients have accelerated inventory purchases due to trade uncertainties [27] Question: Did you invest in any particular markets in 1Q? - The company added personnel in the Florida market and remains optimistic about that area, while most production is expected to come from California [29] Question: Is the decline in AUM due to fluctuations in customer account balances? - Management acknowledged some terminations and turnover but remains optimistic about the pipeline going forward [31] Question: What rate environment does the NIM outlook assume? - The company is assuming two rate cuts in 2025 and a total of six cuts through the end of 2027, remaining conservative in its outlook [36] Question: Any expense impact from internal control remediation? - Management indicated there will be some professional service expenses as they bring in expertise to accelerate the transition [43] Question: How do you expect overall loan balances to trend going forward? - The company expects modest growth in loan balances over time, focusing on reducing CRE concentration and increasing higher-yielding loans [70]

First Foundation (FFWM) reported $71.4 million in revenue for the quarter ended March 2025, representing a year-over-year increase of 39.8%. EPS of $0.09 for the same period compares to $0.02 a year ago.The reported revenue compares to the Zacks Consensus Estimate of $63.8 million, representing a surprise of +11.91%. The company delivered an EPS surprise of +350.00%, with the consensus EPS estimate being $0.02.While investors scrutinize revenue and earnings changes year-over-year and how they compare with W ...

INVESTOR PRESENTATION | FIRST QUARTER 2025 April 30, 2025 BANKING ● PRIVATE WEALTH MANAGEMENT ● TRUST SERVICES Safe Harbor Statement This report includes forward-looking statements within the meaning of the "Safe-Harbor" provisions of the Private Securities Litigation Reform Act of 1995, including forward-looking statements regarding our expectations and beliefs about our future financial performance and financial condition, potential loan sales, as well as trends in our business and markets. Forward-lookin ...

First Foundation (FFWM) came out with quarterly earnings of $0.09 per share, beating the Zacks Consensus Estimate of $0.02 per share. This compares to earnings of $0.02 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 350%. A quarter ago, it was expected that this wealth manager and commercial bank would post earnings of $0.03 per share when it actually produced a loss of $0.17, delivering a surprise of -666.67%.Over the last f ...

First Foundation Inc. (NYSE: FFWM) April 30, 2025 Exhibit 99.1 FIRST FOUNDATION INC. REPORTS FIRST QUARTER 2025 RESULTS | 1Q25 Key Financial Data | | | | | Highlights | | --- | --- | --- | --- | --- | --- | | Profitability Metrics Return on average | 1Q25 | 4Q24 | 1Q24 | ● | Loan to deposit ratio of 94.1% as of March 31, | | assets (%) | 0.22 | (0.42) | 0.02 | | 2025. | | Adjusted return on | | | | | | | | | | | ● | | | (a) average assets (%) Return on average | 0.23 | (0.42) | 0.03 | | Cost of deposits 3.0 ...

Financial Position - As of December 31, 2024, First Foundation Inc. had total assets of $12.6 billion, total loans of $9.2 billion, and total deposits of $9.9 billion[20]. - The company reported $5.4 billion in assets under management (AUM) and $1.2 billion in trust assets under advisement (AUA) as of December 31, 2024[20]. - Trust assets under management (AUA) totaled $1.1 billion as of December 31, 2024, providing cross-selling opportunities with investment advisory services[60]. - As of December 31, 2024, the company's available-for-sale securities portfolio was valued at $1.3 billion, with a net unrealized loss of $12.6 million[204]. Capital and Funding - In July 2024, First Foundation Inc. raised approximately $228 million in an equity capital raise, issuing 11,308,676 shares of common stock at $4.10 per share[29]. - As of September 30, 2024, stockholders approved an increase in authorized shares of common stock from 100 million to 200 million[30]. - FFB is prohibited from paying cash dividends that would cause it to become undercapitalized, and must obtain prior written approval from the FDIC and DFPI for any dividend payments[111]. - The company has a deferred tax asset of $76.7 million, which may not be fully realized if sufficient future taxable income is not achieved[194]. Lending and Investment Services - The company focuses on three primary lending channels: Commercial Real Estate (CRE), Commercial and Industrial (C&I), and Consumer loans[36]. - The CRE loan channel includes multifamily residential and non-owner occupied commercial real estate loans, with terms generally up to 10 years[37]. - The C&I loan channel supports small to moderate-sized businesses, with a focus on developing quality full-service banking relationships[43]. - The company offers commercial real estate loans secured by first trust deeds on nonresidential properties, typically with adjustable rates tied to independent indexes[44]. - Commercial loans are available for terms ranging from one to seven years, with underwriting based on borrower creditworthiness and cash flow[45][47]. - The company participates in Shared National Credits, which are multi-bank transactions for large loans, typically with terms from one to seven years[48]. - The company is an approved SBA and USDA lender, offering small business loans with a maximum amount of $250,000 through a streamlined process[49]. - The wealth management division focuses on creating diversified investment portfolios tailored to clients' objectives and risk tolerance[62]. Revenue Sources - The company’s investment advisory and wealth management services generated a stable source of diversified, fee-based, recurring revenues[20]. - Trust service fees provide additional sources of noninterest income, complementing investment and wealth management services[27]. Regulatory Environment - The company is subject to capital requirements, including a minimum Tier 1 leverage capital ratio of 4.00% and a total risk-based capital ratio of 10.50%[89]. - The capital conservation buffer requires an additional 2.5% of common equity tier 1 capital on top of minimum risk-weighted asset ratios to avoid constraints on dividends and executive compensation[89]. - The company must obtain prior approval from the Federal Reserve for significant acquisitions or mergers, ensuring regulatory compliance[87]. - The company is classified based on capital adequacy standards, with thresholds determining its capital category, such as well-capitalized or undercapitalized[96]. - The company is subject to supervision and regulation by both federal and state agencies, including the FDIC and DFPI, impacting its operational framework[83]. - The Dodd-Frank Act permanently increased the maximum deposit insurance amount to $250,000 per depositor[115]. Market Competition - The banking and investment advisory markets are highly competitive, dominated by larger national and regional banks with greater financial resources[67]. - The company competes primarily on the basis of personal service, offering an integrated platform of financial services that few competitors provide[68]. - The company faces intense competition from larger financial institutions, which may adversely affect its ability to attract and retain clients[200]. Economic and Financial Risks - The company's profitability is highly dependent on interest rate spreads and noninterest income, which are influenced by factors such as inflation and government policies[70]. - The Federal Reserve's monetary policies significantly influence the growth and performance of bank loans, investments, and deposits[74]. - Changes in interest rates could reduce the company's net interest margin and net interest income, impacting overall earnings[173]. - The company faces risks from potential loan defaults, which could necessitate charge-offs and adversely affect net income and financial condition[165]. - The allowance for credit losses (ACL) may not be adequate to cover actual losses, which could materially affect operating results[166]. - The company is geographically concentrated in five states, which increases exposure to local economic downturns[169]. - The company continues to monitor inflation and overall economic conditions, adjusting strategies as necessary[164]. Operational Risks - The company is susceptible to fraudulent activities and cybersecurity breaches, which could lead to financial losses and increased operational costs[208]. - The reliance on third-party service providers for critical systems poses a risk of operational interruptions, potentially harming client services and the company's reputation[210]. - Ineffective risk management processes could lead to significant losses and increased regulatory scrutiny[213]. - Natural disasters in key operational areas could disrupt business operations and negatively impact loan collateral values[214]. - Environmental liabilities associated with acquired properties could result in substantial costs and adversely affect financial condition[215]. Community Engagement - The company distributed approximately $321,000 in grants and donations through its Supporting our Communities program in 2024, contributing 3,499 volunteer hours and supporting a total of 226 organizations[154].

Core Insights - First Foundation (FFWM) reported a revenue of $64.68 million for the quarter ended December 2024, reflecting a year-over-year increase of 14.7% [1] - The company's EPS was -$0.17, a decline from $0.05 in the same quarter last year, indicating a significant earnings surprise of -666.67% compared to the consensus estimate of $0.03 [1] Financial Performance Metrics - The Efficiency Ratio (non-GAAP) was reported at 103.1%, exceeding the average estimate of 91.5% by three analysts [4] - Total interest-earning assets averaged $13.02 billion, surpassing the estimated $12.86 billion [4] - Net charge-offs to average loans were annualized at 0.7%, compared to the estimated 0% [4] - The Net Interest Margin was reported at 1.6%, aligning with the average estimate [4] - Total nonperforming assets amounted to $46.65 million, higher than the average estimate of $44.18 million [4] - Net interest income was $51.31 million, below the average estimate of $52.54 million [4] - Total noninterest income reached $13.37 million, exceeding the average estimate of $11.86 million [4] - Asset management, consulting, and other fees were reported at $9.27 million, slightly above the average estimate of $9.22 million [4] - Other income was $2.99 million, surpassing the estimated $2.42 million [4] Stock Performance - Over the past month, shares of First Foundation have returned +0.8%, compared to a +1.2% change in the Zacks S&P 500 composite [3] - The stock currently holds a Zacks Rank 2 (Buy), suggesting potential outperformance against the broader market in the near term [3]

INVESTOR PRESENTATION December 2024 BANKING ● PRIVATE WEALTH MANAGEMENT ● TRUST SERVICES Safe Harbor Statement This report includes forward-looking statements within the meaning of the "Safe-Harbor" provisions of the Private Securities Litigation Reform Act of 1995, including forward-looking statements regarding our expectations and beliefs about our future financial performance and financial condition, potential loan sales, as well as trends in our business and markets. Forward-looking statements often inc ...

Financial Performance - First Foundation Inc. reported a net loss of $14.1 million, or $0.17 per share, for Q4 2024, compared to a net loss of $82.2 million in Q3 2024[2]. - The company recorded an income tax benefit of $8.8 million for the quarter, with an annual effective tax rate of 32.7%[33]. - The net loss for Q4 2024 was $(14,111,000), compared to a net loss of $(82,174,000) in Q3 2024 and a net income of $2,548,000 in Q4 2023[49]. - Adjusted net loss attributable to common shareholders for Q4 2024 was $(13,873) thousand, compared to $2,679 thousand in Q3 2024 and $2,828 thousand in Q4 2023[62]. - Return on average assets for Q4 2024 was (2.44)%, compared to (0.42)% in Q3 2024 and 0.08% in Q4 2023[51]. - Return on average common equity for Q4 2024 was (5.8)%, down from (33.9)% in Q3 2024 and up from 1.1% in Q4 2023[63]. Income and Expenses - Net interest income for Q4 2024 was $51.3 million, an increase from $49.1 million in Q3 2024, with a net interest margin of 1.58%[8]. - Noninterest income totaled $13.4 million for the quarter, significantly impacted by a $117.5 million LOCOM adjustment in the previous quarter[26]. - Noninterest expense increased to $67.0 million from $60.2 million in the prior quarter, with a notable rise in compensation and benefits expense[28]. - Total noninterest expense for Q4 2024 was $66,989 thousand, an increase from $60,225 thousand in Q3 2024 and $55,892 thousand in Q4 2023[67]. - The efficiency ratio (non-GAAP) for the quarter was 103.1%, compared to 98.1% in the prior quarter, indicating increased operational costs relative to revenue[32]. Loans and Deposits - Total deposits decreased to $9.9 billion as of December 31, 2024, down from $10.3 billion at the end of Q3 2024[8]. - The loan to deposit ratio was 93.5% as of December 31, 2024, compared to 95.9% in the prior quarter[4]. - Loans held for investment decreased to $7,941.4 million as of December 31, 2024, from $10,177.8 million a year earlier[47]. - Total loans outstanding as of December 31, 2024, were $7,936,215, a decrease of 1.8% from $8,083,756 in the previous quarter[54]. - Loan originations for Q4 2024 were $364,475,000, slightly down from $366,313,000 in Q3 2024 but up from $338,829,000 in Q4 2023[51]. Capital and Assets - Total risk-based capital ratio improved to 13.87%, an increase of 160 basis points from the year-ago quarter[4]. - As of December 31, 2024, shareholders' equity totaled $1,053.4 million, a decrease from $1,069.8 million as of September 30, 2024, and $925.3 million as of December 31, 2023[39]. - Total assets as of December 31, 2024, were $12,645.3 million, down from $13,376.6 million as of September 30, 2024[47]. - Total liabilities decreased to $11,591.9 million as of December 31, 2024, from $12,306.8 million as of September 30, 2024[48]. - The tangible book value per common share decreased to $11.68 as of December 31, 2024, from $13.79 as of September 30, 2024[39]. Credit Quality - The allowance for credit losses to total loans held for investment increased to 0.41% as of December 31, 2024, following a $20.1 million provision for loan losses recorded during the quarter[8]. - Total nonperforming assets rose to $46.7 million, representing 0.37% of total assets, compared to 0.33% in the prior quarter[34]. - The allowance for credit losses for loans was $32.3 million, or 0.41% of total loans held for investment, up from 0.36% in the prior quarter[35]. - The provision for credit losses was $20,647,000 in Q4 2024, compared to a reversal of $282,000 in Q3 2024 and a provision of $229,000 in Q4 2023[49]. Market Recognition - First Foundation Advisors was recognized as a top registered advisory firm by Barron's and ranked seventeenth on CNBC's FA100 list[9].