First Foundation (FFWM) came out with quarterly earnings of $0.02 per share, beating the Zacks Consensus Estimate of $0.01 per share. This compares to earnings of $0.15 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 100%. A quarter ago, it was expected that this wealth manager and commercial bank would post earnings of $0.02 per share when it actually produced earnings of $0.05, delivering a surprise of 150%.Over the last fou ...

Financial Performance - Net income for Q1 2024 was $793 thousand, or $0.01 per share, a decrease from $2.5 million and $0.05 per share in Q4 2023[4] - For Q1 2024, First Foundation Inc. reported net income of $1,368,000, a decrease of 55.1% from $3,052,000 in Q4 2023 and a decrease of 86.8% from $10,343,000 in Q1 2023[53] - Net income for Q1 2024 was $793 thousand, a significant decrease from $2,548 thousand in Q4 2023, representing a decline of 68.9%[49] - The company reported a net loss of $1,761,000 in the Other and Eliminations segment for Q1 2024, an improvement from a loss of $1,958,000 in Q4 2023 and a loss of $2,709,000 in Q1 2023[53] - Adjusted net income attributable to common shareholders for Q1 2024 was $1,059,000, down 62.5% from $2,828,000 in Q4 2023 and down 87.4% from $8,382,000 in Q1 2023[65] Loan and Deposit Trends - Total loans decreased to $10.1 billion as of March 31, 2024, down from $10.2 billion in Q4 2023 and $10.7 billion in Q1 2023[11] - Total loans outstanding as of March 31, 2024, were $10,070,191,000, a decrease of 0.9% from $10,161,047,000 in Q4 2023 and a decrease of 5.5% from $10,653,108,000 in Q1 2023[54] - Total deposits were $10.6 billion as of March 31, 2024, compared to $10.7 billion in Q4 2023 and $10.1 billion in Q1 2023[16] - Total deposits as of March 31, 2024, were $10,638,970,000, a slight decrease of 0.5% from $10,688,932,000 in Q4 2023 but an increase of 5.8% from $10,051,706,000 in Q1 2023[54] - As of March 31, 2024, total deposits were composed of 36% brokered deposits, down from 40% in the prior quarter and 19% a year ago[17] Asset Quality - Nonperforming assets to total assets ratio was 0.18%, up from 0.15% in the previous quarter[6] - Total nonperforming assets increased to $24.0 million, up from $20.2 million in the prior quarter and $17.4 million a year ago[34] - The ratio of nonperforming assets to total assets was 0.18%, up from 0.15% in the prior quarter and 0.13% a year ago[35] - The allowance for credit losses for loans was $29.3 million, or 0.29% of total loans, unchanged from the prior quarter[36] Income and Expense Analysis - Net interest income was $38.4 million for the quarter, down from $42.5 million in the prior quarter and $58.8 million in Q1 2023[22] - Noninterest income was $12.7 million, compared to $13.9 million in the prior quarter and $11.7 million in Q1 2023[26] - The company reported total noninterest expense of $50,609,000 for Q1 2024, a decrease from $55,892,000 in Q4 2023 and $59,340,000 in Q1 2023[64] - Noninterest income for Q1 2024 was $12,683 thousand, slightly down from $13,876 thousand in Q4 2023, a decrease of 8.6%[49] Capital and Efficiency Ratios - The total risk-based capital ratio increased to 12.49% from 12.27% in the prior quarter[6] - The efficiency ratio (non-GAAP) for the quarter was 98.4%, slightly improved from 98.5% in the prior quarter but worse than 84.5% in Q1 2023[32] - The efficiency ratio for Q1 2024 was 98.4%, compared to 98.5% in Q4 2023, indicating stable operational efficiency[50] - Return on average assets for Q1 2024 was 0.02%, down from 0.08% in Q4 2023, reflecting a decline in profitability[50] - Return on average tangible common equity for Q1 2024 was 0.5%, down from 1.2% in Q4 2023 and down from 3.7% in Q1 2023[61] Interest and Yield Metrics - Net interest margin (NIM) was 1.17% for Q1 2024, down from 1.36% in Q4 2023, reflecting higher deposit costs[9] - The average yield on loans for Q1 2024 was 4.70%, unchanged from Q4 2023 and an increase from 4.54% in Q1 2023[56] - Total interest income rose to $150,453 thousand in Q1 2024, up from $146,598 thousand in Q4 2023, marking an increase of 1.9%[49] - Net interest income for Q1 2024 was $40,091,000, down 9.7% from $44,236,000 in Q4 2023 and down 33.8% from $60,551,000 in Q1 2023[53]

If you are looking for a stock that has a solid history of beating earnings estimates and is in a good position to maintain the trend in its next quarterly report, you should consider First Foundation (FFWM) . This company, which is in the Zacks Banks - Southwest industry, shows potential for another earnings beat.When looking at the last two reports, this wealth manager and commercial bank has recorded a strong streak of surpassing earnings estimates. The company has topped estimates by 108.33%, on average ...

Financial Overview - As of December 31, 2023, First Foundation Inc. had total assets of $13.3 billion, loans of $10.1 billion, deposits of $10.7 billion, assets under management of $5.2 billion, and trust assets under advisement of $1.3 billion[20]. - The total loans outstanding as of December 31, 2023, were $10.2 billion, with real estate loans comprising 71.9% of the total, including multifamily loans at $5.2 billion (51.5% of total loans)[33]. - Total deposits as of December 31, 2023, amounted to $10.69 billion, with an average interest rate of 3.36%, up from $10.36 billion and 2.13% in 2022[51]. - Trust assets under administration (AUA) reached $1.3 billion as of December 31, 2023[56]. - The company reported an aggregate net unrealized loss of $14.2 million on its available-for-sale securities portfolio, which was valued at $711 million as of December 31, 2023[159]. Revenue Sources - Investment advisory and wealth management services accounted for approximately 14% of total revenue in 2023, providing a stable source of diversified, fee-based, recurring revenues[20]. - Trust service fees provide additional sources of noninterest income, complementing the investment and wealth management services offered[28]. Loan Portfolio - The commercial and industrial loans represented 28.1% of total loans, amounting to $2.9 billion, while consumer loans were minimal at $1.3 million[33]. - The lending platform focuses on three primary channels: Commercial Real Estate, Commercial and Industrial, and Consumer loans, each designed to meet specific client needs[34]. - The consumer loan channel primarily consists of single-family residential loans, which are mostly non-conforming jumbo and super-jumbo loans[48]. - Loans secured by multifamily and commercial real estate represent approximately 61% of the company's outstanding loans, making it vulnerable to real estate market downturns[153]. Growth Strategy - The company plans to grow by marketing services to new clients, obtaining referrals, adding experienced bankers, cross-selling services, and making opportunistic acquisitions[22]. - The company differentiates itself through a combination of comprehensive financial services and personalized client service, enhancing its digital platform continually[23]. Regulatory Environment - The company is subject to extensive federal and state regulations aimed at protecting depositors and the banking system[65]. - The company must obtain prior approval from the Federal Reserve for significant acquisitions, including more than 5% of voting securities of other banks[74]. - The company is regulated by the FDIC and the DFPI, which oversee its operations as a California state-chartered bank[72]. - The company is required to maintain a capital conservation buffer of 2.5% of CET1 on top of minimum risk-weighted asset ratios to avoid constraints on dividends and executive compensation[76]. - The company has not elected to be a financial holding company, limiting its ability to engage in a broader range of financial activities[67]. Capital and Liquidity - As of December 31, 2023, the company exceeded the minimum regulatory capital requirements to be classified as "well-capitalized" under prompt corrective action requirements[83]. - The company's capital ratios are as follows: CET1 risk-based capital ratio at 7.00%, Tier 1 risk-based capital ratio at 8.50%, and total risk-based capital ratio at 10.50%[76]. - The company may need to raise additional capital in the future to maintain regulatory ratios and fund growth, which could be affected by market conditions and its financial performance[166]. - Liquidity risk could adversely affect the company's ability to fund operations, with principal sources of liquidity including earnings, deposits, and borrowings[161]. Economic and Market Risks - Inflationary pressures have persisted throughout 2023, impacting costs for consumers and businesses, which may affect loan growth and interest income[140]. - A decline in economic activity could lead to increased unemployment and weakened credit quality, resulting in higher levels of past due and classified loans[143]. - The company expects deposit costs to continue increasing due to elevated interest rates and potential challenges in retaining deposit relationships following bank failures in the first half of 2023[144]. - Changes in interest rates could adversely affect net interest margins and net interest income, particularly if the company cannot adjust loan and deposit rates in a timely manner[156]. - The allowance for credit losses (ACL) may not be adequate to cover actual losses, potentially impacting net income and operating results[149]. Competition - The company competes with larger banks and investment firms primarily through personalized service, which is often not available to clients of larger institutions[62]. - The company faces intense competition from larger banks and financial institutions, which could adversely affect net interest margins and investment management advisory fees[174]. - The ability to attract and retain investment advisory clients is dependent on competitive investment products and performance, with potential material impacts on financial condition if unsuccessful[175]. Operational Risks - Cybersecurity threats and information security breaches pose risks that could lead to financial losses and reputational damage[183]. - Reliance on third-party service providers for critical systems introduces risks of operational interruptions that could adversely affect business operations[187]. - Technology and marketing costs may rise without corresponding revenue increases, negatively impacting financial results[182]. Shareholder and Governance Risks - The ability to pay dividends is restricted by regulatory approvals, and any reduction or discontinuation of dividends could negatively impact the company's stock price and financial health[214][216]. - The company faces risks associated with proxy contests and actions from activist shareholders, which may lead to significant expenses and business disruptions[218]. - Activist investors are increasingly advocating for corporate actions such as governance changes, financial restructurings, and stock repurchases[218].

IRVINE, Calif.--(BUSINESS WIRE)--First Foundation Inc. (NYSE: FFWM) ("First Foundation"), a financial services company with two wholly-owned operating subsidiaries, First Foundation Advisors and First Foundation Bank, announces the nonprofit recipients of its 'Supporting Our Communities' philanthropy initiative. First Foundation's 'Supporting Our Communities' initiative is designed to support organizations in our community that focus on immediate needs such as food insecurity, emergency housing, and work ...

Financial Position - As of September 30, 2023, the company reported total assets of $13.1 billion, a slight increase from $13.0 billion at December 31, 2022, primarily due to a $0.6 billion increase in available-for-sale investment securities[122] - Total liabilities increased to $12.1 billion, up from $11.9 billion at year-end 2022, driven by a $0.4 billion increase in deposits[123] - Shareholders' equity decreased to $0.9 billion from $1.1 billion, largely due to a net loss of $201.6 million for the nine months ended September 30, 2023, which included a $215.3 million goodwill impairment charge[124] - The company’s total liabilities included $10.8 billion in deposits and $1.2 billion in borrowings and subordinated debt as of September 30, 2023[123] - The total assets as of September 30, 2023, were $12.9 billion, compared to $11.8 billion as of September 30, 2022[137] - The total liabilities and equity stood at $13,051,564 as of September 30, 2023[159] Loans and Credit Quality - Total loans decreased by $0.4 billion to $10.3 billion, with $1.2 billion in loan originations offset by $1.6 billion in loan payoffs and paydowns during the nine months ended September 30, 2023[122] - The loan portfolio is concentrated in California (73.2%), Florida (8.9%), and Texas (3.7%), with 85.8% of loans made to borrowers in these states[171] - The estimated fair value of total loans was $10.28 billion as of September 30, 2023[169] - The total past due loans amounted to $38.247 million, which is 0.37% of total loans, compared to $31.087 million or 0.29% as of December 31, 2022[181] - The provision for credit losses for the three months ended September 30, 2023, was a reversal of $1.922 million, with total charge-offs of $1.183 million and recoveries of $815 thousand[183] - The ACL for loans decreased by $4.5 million from December 31, 2022, to September 30, 2023, indicating improved credit quality[184] Income and Expenses - Combined net income for Q3 2023 was $2.2 million, a decrease of $26.8 million compared to $29.0 million in Q3 2022[129] - Net interest income decreased by $35.7 million in the Banking segment, contributing to a total net income before taxes decline of $39.3 million[129] - Wealth Management net income before taxes increased to $2.3 million in Q3 2023 from $0.5 million in Q3 2022, driven by a $0.7 million increase in noninterest income[129] - For the nine months ended September 30, 2023, the combined net loss was $201.6 million, compared to a net income of $93.2 million for the same period in 2022[131] - The $329.2 million decrease in net income before taxes was primarily due to a $215.3 million goodwill impairment charge recorded in Q2 2023[131] - Noninterest income for Banking decreased to $4.6 million in Q3 2023 from $5.7 million in Q3 2022, a decline of 19.8%[146] Dividends and Shareholder Returns - The company announced a quarterly cash dividend of $0.01 per common share, to be paid on November 16, 2023[125] - The Company paid a total of $8.5 million in dividends during the nine months ended September 30, 2023, including $6.2 million for Q4 2022 and $2.2 million for Q1 and Q2 2023[206] - The Company paid $24.8 million in dividends ($0.44 per share) in 2022[207] - The total amount of dividends and stock repurchases is limited to 50% of FFI's net income for the current twelve-month period[207] Liquidity and Capital - The available liquidity ratio was 34.8%, exceeding the minimum policy requirement of 25%[190] - As of September 30, 2023, the CET1 capital ratio was 9.70%, exceeding the required 4.50% for well-capitalized status[203] - FFB's total risk-based capital ratio was 11.66% as of September 30, 2023, above the required 8.00%[203] - The company had secured unused borrowing capacity of $880.7 million under the Federal Reserve Bank credit line and $2.0 billion with the FHLB[188] Investment Activities - Investing activities used net cash of $106.9 million, primarily due to $617.5 million in purchases of U.S. Treasury and GNMA mortgage-backed securities[193] - The company did not make any purchases of investment securities during the nine months ended September 30, 2023[166] Operational Efficiency - Customer service costs and compensation and benefits accounted for 38% and 31% of total combined noninterest expenses, respectively[126] - Noninterest expense in Banking for Q3 2023 was $58.0 million, an increase of 8.4% from $53.6 million in Q3 2022[151] - Average Banking full-time equivalents (FTEs) decreased to 508.5 in Q3 2023 from 648.7 in Q3 2022, reflecting staffing reductions[153] Market Conditions and Risks - The Company is exposed to financial risks, particularly interest rate risk, as detailed in its Annual Report on Form 10-K[209] - The company’s management estimates of expected credit losses are influenced by historical charge-off experience and current economic conditions, which may lead to future adjustments[185]

Financial Data and Key Metrics Changes - The company reported net income attributable to common shareholders of $2.2 million or $0.04 per share for the third quarter, with total revenues increasing to $63.8 million, a 4.4% rise from $61.1 million in the previous quarter [38] - Net interest income rose to $52.1 million, reflecting a 6.3% increase compared to $49 million in the prior quarter [38] - The net interest margin improved to 1.66% from 1.51% in the previous quarter [39] - The loan-to-deposit ratio decreased to 95.1% from 97.9% in the previous quarter [40] Business Line Data and Key Metrics Changes - The breakdown of loans originated year-to-date shows 90% in commercial business loans, 2% in multifamily, 2% in single-family, and approximately 6% in other loans [6] - Loan balances were reported at $10.3 billion, down $302 million from $10.6 billion in the previous quarter [27] - Trust assets under advisement remained stable at $1.2 billion, with promising new client prospects for advisory and trust services [28] Market Data and Key Metrics Changes - Deposits totaled $10.8 billion in the third quarter, an increase from $9.5 billion a year ago, with core deposits at $8.1 billion [24] - Non-interest-bearing demand deposits accounted for 22% of total deposits, down from 25% in the previous quarter [24] - Brokered deposits increased to 24.6% of total deposits, up from 20.4% in the previous quarter [24] Company Strategy and Development Direction - The company aims to improve its loan-to-deposit ratio and increase overall loan yield while managing interest rate sensitivity [33] - A cautious approach is being taken towards lending, particularly in the multifamily sector, with a focus on diversifying the loan portfolio [66] - The company is enhancing its digital banking capabilities to improve client outreach and deposit growth [90] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about emerging stronger from current market challenges, emphasizing a client-first mentality [4][12] - The company anticipates continued improvements in balance sheet and core earnings, despite uncertainties related to interest rates and geopolitical events [35] - Management remains focused on operational efficiencies and cost management to navigate the current economic landscape [22][64] Other Important Information - The company has maintained a strong liquidity position of approximately $4.3 billion, with a liquidity to uninsured and uncollateralized deposits ratio of 3.1 times [26] - Insured and collateralized deposits represent over 87% of total deposits, reflecting a strong client trust [65] Q&A Session Summary Question: What is the outlook for deposits and funding dynamics? - Management discussed the shift in deposit mix and the strong deposit pipeline, emphasizing the importance of relationship-focused banking [75][77] Question: How do new origination yields compare to payoffs? - Management indicated that loan payoffs were similar to new payment yields for commercial and industrial loans, with expectations for stability in the multifamily and single-family segments [79][81] Question: What are the expectations for customer service costs in the fourth quarter? - Management expects customer service costs to decline in the fourth quarter as seasonal trends impact deposit levels [94] Question: Will there be further expense cuts? - Management confirmed no plans for additional workforce reductions but will continue to seek operational efficiencies [103][125]

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 ...