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, 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 (State o ...

| --- | --- | |-------|-------| | | | | | | | | | | | | Safe Harbor Statement This presentation and the accompanying oral commentary contain "forward-looking statements" as defined in the Private Securities Litigation Reform Act of 1995. Forward-looking statement s often include words such a s "believe," "expect," "anticipate," "intend," "plan," "estimate," "project," "outlook," or words of similar meaning, or future or conditional verbs such a s " will," "would," "should," "could," or "ma y." The forward-l ...

Financial Data and Key Metrics Changes - Earnings for Q2 2022 were $33.3 million or $0.59 per share, a 7% increase over Q1 2022 [5] - Total revenues reached $95.2 million, a 6% increase from Q1 2022 and a 32% increase year-over-year [5] - Tangible book value per share increased to $15.61 [5] - Return on assets was strong at 1.24% with a return on tangible common equity of 15.5% [20] - Net interest margin expanded by 18 basis points to 3.18% [21] - Non-interest income for the quarter was $13.4 million, primarily driven by wealth management revenues [23] Business Line Data and Key Metrics Changes - Loan originations totaled a record $2.2 billion, a 96% increase from Q1 2022 and a 98% increase year-over-year [27] - Wealth Management and Trust business contributed significantly, with assets under management ending at $4.8 billion [12] - Non-interest expense was $48.8 million, a slight increase of 2.5% from Q1 2022 [24] Market Data and Key Metrics Changes - Deposits increased by $581 million for the quarter, a 6.5% increase from Q1 2022 and a 34.2% increase year-over-year [34] - Non-interest-bearing deposits accounted for 38% of total deposit balances [36] - The loan-to-deposit ratio was 98.8% as of June 30, compared to 88.2% as of March 31 [36] Company Strategy and Development Direction - The company is focusing on organic growth opportunities while capitalizing on recent M&A activities [7] - Expansion efforts include entering the Florida market and opening a new branch in Texas [16][14] - The company aims to maintain a strong balance sheet and excellent credit quality in a rising rate environment [18] Management's Comments on Operating Environment and Future Outlook - Management acknowledged headwinds facing the industry but expressed confidence in the company's performance across all business lines [6] - The outlook remains positive with robust demand for services and a strong pipeline across business lines [18] - Management is optimistic about opportunities in the second half of 2022 [107] Other Important Information - The company repurchased $2.5 million of stock at a weighted average price of $21 per share [16] - The effective tax rate for Q2 was 27.9%, down from 28.4% in the prior quarter [26] - The company is investing in technology to enhance operational efficiency [16] Q&A Session Summary Question: Inquiry about interest-bearing deposit rates and deposit beta expectations - Management noted that the spot rate on total deposits dipped into the mid-30 basis point area near the end of the quarter and highlighted the unprecedented increase in the rate environment [38][40] Question: Update on loan yields and multifamily pricing - Loan yields increased, with multifamily rates averaging mid-4s, and management expects to see benefits in the latter half of the year [44][45] Question: Competitive landscape in Texas and Florida - Management discussed strong demand for multifamily products in Florida and Texas, with significant pipeline growth [67][70] Question: Expectations for organic growth and loan growth rates - Management expects low to mid-20s loan growth rate for next year, emphasizing the strength of the lending team [77] Question: Update on the Nidec partnership and rollout - The integration is on track, with an internal employee pilot currently underway [78] Question: Impact of hiring plans on expansion in Texas and Florida - Management confirmed that hiring will continue as needed to support expansion efforts [85]

[Part I. Financial Information](index=4&type=section&id=Part%20I.%20Financial%20Information) [Financial Statements](index=4&type=section&id=Item%201.%20Financial%20Statements) The unaudited consolidated financial statements for Q1 2022 present the company's financial position, performance, and cash flows, with notes detailing key accounting policies and the TGR Financial acquisition [Consolidated Financial Statements](index=4&type=section&id=Consolidated%20Financial%20Statements) First Foundation Inc. reported **$10.47 billion** in total assets and **$30.8 million** net income for Q1 2022, driven by loan growth, despite a **$190.0 million** net cash outflow from increased lending Consolidated Balance Sheet Highlights (unaudited) | Account | March 31, 2022 (in thousands) | December 31, 2021 (in thousands) | | :--- | :--- | :--- | | **Total Assets** | **$10,474,796** | **$10,196,204** | | Net Loans | $7,364,642 | $6,872,952 | | Total Deposits | $8,957,518 | $8,811,960 | | Total Liabilities | $9,392,221 | $9,132,153 | | **Total Shareholders' Equity** | **$1,082,575** | **$1,064,051** | Consolidated Income Statement Highlights (unaudited) | Metric | Three Months Ended March 31, 2022 (in thousands) | Three Months Ended March 31, 2021 (in thousands) | | :--- | :--- | :--- | | Net Interest Income | $74,494 | $54,229 | | Provision for Credit Losses | ($792) | $360 | | Noninterest Income | $15,427 | $11,908 | | Noninterest Expense | $47,618 | $34,511 | | **Net Income** | **$30,836** | **$22,355** | | **Diluted EPS** | **$0.55** | **$0.50** | Consolidated Cash Flow Summary (unaudited) | Cash Flow Activity | Three Months Ended March 31, 2022 (in thousands) | Three Months Ended March 31, 2021 (in thousands) | | :--- | :--- | :--- | | Net Cash from Operating Activities | $40,339 | $32,619 | | Net Cash used in Investing Activities | ($483,366) | ($265,075) | | Net Cash from Financing Activities | $252,980 | $70,775 | | **Decrease in Cash** | **($190,047)** | **($161,681)** | [Notes to the Consolidated Financial Statements](index=9&type=section&id=Notes%20to%20the%20Consolidated%20Financial%20Statements) These notes detail significant accounting policies, the TGRF acquisition, the **$917 million** securities transfer, **$7.4 billion** loan portfolio growth, and subsequent events like the **$0.11** dividend and **$75 million** stock repurchase program - The **TGR Financial, Inc. acquisition** was completed on December 17, 2021, for **$283 million**, primarily in stock, and accounted for under the purchase method, recognizing goodwill[35](index=35&type=chunk)[36](index=36&type=chunk)[37](index=37&type=chunk) - Effective January 1, 2022, **$917 million** in securities were transferred from available-for-sale (AFS) to held-to-maturity (HTM) at amortized cost[73](index=73&type=chunk) Loan Portfolio Composition | Loan Category | March 31, 2022 (in thousands) | December 31, 2021 (in thousands) | | :--- | :--- | :--- | | Total Real Estate Loans | $5,619,195 | $5,284,728 | | Commercial and Industrial Loans | $1,754,279 | $1,598,422 | | Consumer Loans | $9,760 | $10,834 | | **Total Loans (Principal Balance)** | **$7,383,234** | **$6,893,984** | - Post-quarter, on April 26, 2022, a **$0.11 per share quarterly cash dividend** was declared, and a new **$75 million stock repurchase program** was authorized[118](index=118&type=chunk)[119](index=119&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=39&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management analyzes Q1 2022 financial performance, highlighting a **37% increase in net interest income** from loan growth, a provision reversal, and robust capital ratios well above regulatory requirements [Results of Operations](index=43&type=section&id=Results%20of%20Operations) Q1 2022 net income rose to **$30.8 million**, driven by a **$20.3 million** increase in net interest income and a **$0.8 million** provision reversal, despite higher noninterest expenses post-TGRF acquisition Net Interest Income Analysis (Q1 2022 vs Q1 2021) | Metric | Q1 2022 | Q1 2021 | | :--- | :--- | :--- | | Net Interest Income | $74,494 thousand | $54,229 thousand | | Net Interest Margin | 3.00% | 3.16% | | Avg. Interest-Earning Assets | $9,939,673 thousand | $6,870,328 thousand | | Cost of Interest-Bearing Liabilities | 0.32% | 0.45% | - The **reversal of provision for credit losses** in Q1 2022 stemmed from an improved economic scenario outlook[146](index=146&type=chunk) - Wealth Management noninterest income increased by **$1.4 million** year-over-year due to higher billable AUM, though total AUM decreased by **$225 million** to **$5.46 billion** due to market performance[149](index=149&type=chunk)[150](index=150&type=chunk)[151](index=151&type=chunk) [Financial Condition](index=51&type=section&id=Financial%20Condition) Total assets grew to **$10.47 billion** by March 31, 2022, driven by a **$491 million** increase in loans, funded by deposits and borrowings, while the loan-to-deposit ratio rose to **88%** - Total loans and loans held for sale increased by **$491 million** in Q1 2022, driven by **$1.1 billion** in originations, partially offset by **$657 million** in payoffs and payments[157](index=157&type=chunk)[167](index=167&type=chunk) - Total deposits grew by **$146 million** in Q1 2022, primarily due to an increase in corporate deposits[157](index=157&type=chunk) - Borrowings increased by **$116 million** in Q1 2022, mainly from the issuance of **$150 million** in subordinated debt[157](index=157&type=chunk) [Credit Quality and Allowance for Credit Losses](index=59&type=section&id=Delinquent%20Loans,%20Nonperforming%20Assets%20and%20Provision%20for%20Credit%20Losses) Credit quality remained stable, with past due and nonaccrual loans at **0.24%** of total loans, and the Allowance for Credit Losses (ACL) decreasing to **$32.8 million** or **0.44%** of total loans Credit Quality Metrics | Metric | March 31, 2022 | December 31, 2021 | | :--- | :--- | :--- | | Total Past Due & Nonaccrual Loans | $17,501 thousand | $13,656 thousand | | % of Total Loans | 0.24% | 0.20% | | Allowance for Credit Losses (ACL) | $32,822 thousand | $33,776 thousand | | ACL as % of Total Loans | 0.44% | 0.49% | [Liquidity and Capital Resources](index=65&type=section&id=Liquidity%20and%20Capital%20Resources) The company maintained strong liquidity with **$3.2 billion** in credit lines and robust capital, with both FFI and FFB exceeding all regulatory requirements and FFB being well-capitalized Key Capital Ratios (FFI Consolidated) | Ratio | March 31, 2022 | Regulatory Minimum for Adequacy | | :--- | :--- | :--- | | CET1 Capital Ratio | 10.98% | 4.50% | | Tier 1 Leverage Ratio | 8.52% | 4.00% | | Tier 1 Risk-Based Capital Ratio | 10.98% | 6.00% | | Total Risk-Based Capital Ratio | 13.68% | 8.00% | - As of March 31, 2022, FFB's capital ratios **exceeded minimums** to qualify as a **well-capitalized** depository institution[199](index=199&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=69&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) No material changes occurred in the company's quantitative and qualitative disclosures about market risk since the December 31, 2021 Annual Report on Form 10-K - No material changes occurred in the company's quantitative and qualitative disclosures about market risk since December 31, 2021[205](index=205&type=chunk) [Controls and Procedures](index=70&type=section&id=Item%204.%20Controls%20and%20Procedures) The CEO and CFO concluded that disclosure controls and procedures were effective as of March 31, 2022, with no material changes to internal control over financial reporting during the quarter - The CEO and CFO concluded that the company's **disclosure controls and procedures were effective** as of March 31, 2022[208](index=208&type=chunk) - No material changes were made to the **internal control over financial reporting** during Q1 2022[209](index=209&type=chunk) [Part II. Other Information](index=70&type=section&id=Part%20II.%20Other%20Information) [Risk Factors](index=70&type=section&id=Item%201A.%20Risk%20Factors) No material changes occurred in the risk factors previously disclosed in the Annual Report on Form 10-K for the year ended December 31, 2021 - No material changes occurred in the **risk factors** disclosed in the Annual Report on Form 10-K for the year ended December 31, 2021[211](index=211&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=70&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) A new **$75 million stock repurchase program** was authorized on April 26, 2022, replacing a prior authorization, with no shares repurchased during Q1 2022 - A new **$75 million stock repurchase program** was authorized on April 26, 2022, replacing the prior 2018 program[212](index=212&type=chunk) [Exhibits](index=71&type=section&id=Item%206.%20Exhibits) This section lists all exhibits filed with or incorporated by reference into the Form 10-Q, including corporate governance documents and CEO/CFO certifications - The report lists filed exhibits, including **CEO and CFO certifications** under Sarbanes-Oxley Act Sections 302 and 906, and Inline XBRL data files[216](index=216&type=chunk)

Call Start: 11:00 January 1, 0000 11:52 AM ET First Foundation Inc. (NYSE:FFWM) Q1 2022 Earnings Conference Call April 26, 2022, 11:00 AM ET Company Participants Scott Kavanaugh – Chief Executive Officer Kevin Thompson – Chief Financial Officer David DePillo – President Conference Call Participants David Feaster – Raymond James Matthew Clark – Piper Sandler Steve Moss – B. Riley Securities Gary Tenner – D.A. Davidson Andrew Taro – Stephens Operator Greetings and welcome to the First Foundation's First Quart ...

| --- | --- | |-------|-------| | | | | | | | | | | | | Safe Harbor Statement This presentation and the accompanying oral commentary contain "forward-looking statements" as defined in the Private Securities Litigation Reform Act of 1995. Forward-looking statements often include words such as "believe," "expect," "anticipate," "intend," "plan," "estimate," "project," "outlook," or words of similar meaning, or future or conditional verbs such as "will," "would," "should," "could," or "may." The forward-lookin ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K (Mark One) ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2021 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. | --- | --- | --- | --- | |----------------------------------------------------------- ...

First Foundation, Inc. (NYSE:FFWM) Q4 2021 Earnings Conference Call January 31, 2022 11:00 AM ET Company Participants Scott Kavanaugh - Chief Executive Officer Kevin Thompson - Chief Financial Officer David DePillo - President Conference Call Participants David Feaster - Raymond James Steve Moss - B. Riley Securities Matthew Clark - Piper Sandler Gary Tenner - DA Davidson Operator Greetings, and welcome to the First Foundation’s Fourth Quarter 2021 Earnings Conference Call. Today’s call is being recorded. A ...

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, 2021 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 2021 Earnings Conference Call October 26, 2021 11:00 AM ET Company Participants Scott Kavanaugh - CEO & Vice Chairman Kevin Thompson - EVP & CFO David DePillo - President Conference Call Participants Stephen Moss - B. Riley Securities David Feaster - Raymond James & Associates Gary Tenner - D.A. Davidson & Co. David Chiaverini - Wedbush Securities Operator Greetings, and welcome to the First Foundation's Third Quarter 2021 Earnings Conference Call. Today's call is being ...