First Foundation Inc. (NYSE:FFWM) Q3 2023 Earnings Conference Call October 26, 2023 11:00 AM ET Company Participants Scott Kavanaugh - President and CEO Jamie Britton - CFO Chris Naghibi - COO Conference Call Participants David Feaster - Raymond James Andrew Terrell - Stephens Inc. Adam Butler - Piper Sandler Gary Tenner - D.A. Davidson Operator Greetings, and welcome to First Foundation's Third Quarter 2023 Earnings Conference Call. Today's call is being recorded. Speaking today will be Scott Kavanaugh, F ...

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 June 30, 2023 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 | | ...

| --- | --- | --- | --- | |-------------------------------------------------------------|---------------|----------------------------------------------------|-----------------------------------------| | Multifamily Loan Characteristics(1) \nAverage Loan Size | $3.28 Million | Single Family Real Estate \nAverage Loan Size(5) | Loan Characteristics(1) \n$678 Thousand | | Average LTV(2) | 54% | Average LTV (2) | 49% | | Average DSCR (3) | 1.42x | Median FICO (4) | 764 | | % Delinquent | 0.00% | % Delinquent | ...

First Foundation Inc. (NYSE:FFWM) Q2 2023 Earnings Conference Call July 27, 2023 11:00 AM ET Company Participants Scott Kavanaugh - President and CEO Chris Naghibi - Chief Operating Officer Amy Djou - Interim Chief Financial Officer Conference Call Participants David Feaster - Raymond James Andrew Terrell - Stephens Gary Tenner - D.A. Davidson Adam Butler - Piper Sandler Operator Greetings. And welcome to First Foundation’s Second Quarter 2023 Earnings Conference Call. Today’s call is being recorded. Speaki ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q (Mark One) 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 or other jurisdiction | (I.R.S. Employer | | of incorporation or organization) | Identification Number) | | 200 Crescent Court, Suite 1400 Dallas, Texas | 75201 | | (Address of principal executive offices) | ...

First Foundation Inc. (NYSE:FFWM) Q1 2023 Earnings Conference Call April 27, 2023 11:00 AM ET Company Participants Scott Kavanaugh - President and CEO Chris Naghibi - COO Amy Djou - Interim CFO Conference Call Participants David Feaster - Raymond James Gary Tenner - D.A. Davidson Andrew Terrell - Stephens Adam Butler - Piper Sandler Operator Greetings, and welcome to the First Foundation's First Quarter 2023 Earnings Conference Call. Today's call is being recorded. Speaking today will be Scott Kavanaugh, Fi ...

Financial Overview - As of December 31, 2022, First Foundation Inc. had total assets of $13.0 billion, loans of $10.7 billion, deposits of $10.4 billion, assets under management of $5.0 billion, and trust assets under advisement of $1.3 billion[17]. - As of December 31, 2022, total deposits amounted to $10.36 billion, with a weighted average interest rate of 2.177%[52]. - The five largest bank depositors accounted for 20% of total deposits as of December 31, 2022, increasing liquidity risk if any large depositor withdraws funds[162]. - As of December 31, 2022, the bank's trust assets under administration (AUA) totaled $1.3 billion[55]. - The bank's investment advisory and wealth management services have seen assets under management (AUM) grow at a compound annual growth rate of 8% over the four years ending December 31, 2022[60]. Loan Portfolio - The total loans outstanding as of December 31, 2022, were $10.7 billion, with multifamily loans making up 49.9% and commercial and industrial loans accounting for 27.9%[30]. - As of December 31, 2022, the recorded investment balance for loans secured by real estate was $7.7 billion, representing 72.1% of total loans[30]. - Loans secured by multifamily and commercial real estate represented approximately 61% of outstanding loans as of December 31, 2022, making the company vulnerable to downturns in the real estate market[158]. - Approximately 88% of the loans in the loan portfolio were made to borrowers in California (73%), Florida (10%), Texas (4%), and Nevada (1%) indicating significant geographic concentration risk[148]. - The bank offers a small balance portfolio loan program with a maximum loan amount of $250,000 to support small business clients[46]. Revenue Sources - Investment advisory and wealth management services accounted for approximately 11% of total revenue in 2022, providing a stable source of diversified, fee-based, recurring revenues[17]. - Trust service fees provide additional sources of noninterest income, complementing the investment and wealth management services offered[25]. Competitive Landscape - The banking and investment advisory market is highly competitive, dominated by major banks such as Wells Fargo, JP Morgan Chase, and Bank of America, which have greater financial resources and higher lending limits[62]. - The company competes primarily on the basis of personal service, offering a "one-on-one" approach that larger competitors often do not provide[63]. - The company believes its competitive advantage lies in offering services through an integrated platform, which is rare among local and regional banks[65]. - The company maintains pricing in line with principal competitors while focusing on high levels of personal service rather than competing solely on price[66]. Regulatory Environment - FFB is subject to primary supervision and regulation by the FDIC and the DFPI, affecting its operations and compliance requirements[74]. - The company must obtain prior approval from the Federal Reserve for significant acquisitions, including more than 5% of voting securities of any bank[76]. - The Capital Rules require banks to maintain a capital conservation buffer of an additional 2.5% of Common Equity Tier 1 (CET-1) on top of minimum risk-weighted asset ratios[80]. - The company is required to maintain capital at or above certain prescribed levels to avoid regulatory restrictions and ensure financial stability[70]. - The FDIC has established guidelines for maintaining appropriate capital levels, which could limit the amount of dividends FFB may pay[102]. Risk Factors - Economic conditions and government policy responses could have a material adverse effect on the company's business, financial condition, and results of operations[147]. - Changes in interest rates could reduce net interest margins and net interest income, impacting overall earnings[149]. - The company may incur significant losses due to ineffective hedging of interest rate risk, which requires sophisticated models and continual monitoring[157]. - The company faces intense competition from larger banks and financial institutions, which may affect its ability to attract and retain clients[178]. - Cybersecurity breaches and fraudulent activities could lead to significant financial losses and damage to the company's reputation[187]. Operational Challenges - The company is subject to significant estimates and assumptions in financial reporting, which if inaccurate, could materially affect its financial condition[181]. - Technology and marketing costs may increase operating expenses without a corresponding increase in revenues, adversely affecting financial results[186]. - The company must maintain effective anti-money laundering programs, with deficiencies potentially leading to fines and reputational damage[213]. - Compliance with privacy and data protection laws could increase operational costs and restrict business opportunities, impacting financial performance[214]. Employee and Management - As of December 31, 2022, the Company had approximately 713 full-time employees, with no employees covered by a collective bargaining agreement[130]. - The Company emphasizes customer relationships and personalized service as a key part of its business strategy, which relies on the quality of service provided by its employees[131]. - Loss of key personnel or inability to attract qualified staff could adversely impact the company's future financial performance[180]. Future Outlook - The company plans to grow through acquisitions, but there is no assurance of success, and such strategies may involve significant risks[164]. - Future legislation may impact the regulatory structure and operational costs for the Company, potentially altering its business strategy and competitive balance[127]. - New lines of business or products may involve significant risks and uncertainties, potentially impacting profitability and operational effectiveness[172].

Company Overview - First Foundation manages \$5.0 billion in assets, advises on \$13.0 billion in bank assets, and has \$1.3 billion in trust assets under advisement[5] - The company operates in five states: California, Texas, Nevada, Hawaii, and Florida, with 31 branch/office locations and 713 employees[18] - The company focuses on commercial banking, wealth management, and trust solutions, targeting business owners, real estate investors, and high-net-worth individuals[6, 8] Loan Portfolio and Growth - The company's loan portfolio is diversified, with 50% in multifamily, 32% in commercial business, 9% in single-family, and 7% in CRE investment loans as of 4Q22[8, 95] - Commercial business originations accounted for 49% of total originations in 2022, representing a 78% increase year-over-year[8, 130] - The company has a strong presence in California, with 71% of total loans concentrated in the state as of 4Q22[9] Deposit Base and Funding - Core deposits account for 87% of the company's total deposits, with 72% of the core deposit base made up of commercial business deposits as of 4Q22[8] - Non-interest-bearing accounts represent 26% of the company's deposit base as of 4Q22[8] - The company's digital deposit channel has \$789 million in balances as of December 31, 2022, reaching a new, younger client audience[185] Financial Performance - The company reported a return on average assets (ROAA) of 0.96% and a return on average tangible common equity (ROATCE) of 13.0% in 2022[8] - The company's efficiency ratio was 58.6% in 2022[8] - In 2022, 14% of total revenue was derived from recurring noninterest income[8, 212]

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, 2022 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 ...

First Foundation Inc. (NYSE:FFWM) Q3 2022 Results Conference Call October 25, 2022 11:00 AM ET Company Participants Scott Kavanaugh - CEO and Vice Chairman Kevin Thompson - Executive VP and CFO David DePillo - President Conference Call Participants Matthew Clark - Piper Sandler Gary Tenner - D.A. Division Andrew Terrell - Stephens David Feaster - Raymond James Operator Greetings, and welcome to First Foundation's Third Quarter 2022 Earnings Conference Call. Today's call is being recorded. At this time, all ...