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. | --- | --- | --- | --- | |----------------------------------------------------------- ...

Financial Data and Key Metrics Changes - The company's earnings for Q4 2021 were $23.9 million, or $0.51 per share, with total revenues of $75.8 million, representing a 20% increase compared to the same quarter last year [14] - Return on average assets was 1.15%, and return on average tangible equity was 13.4%, with tangible book value per share at $14.92 [14] - The dividend payment was increased by 22% from $0.09 to $0.11 per share [14] Business Line Data and Key Metrics Changes - Loan originations reached a record $1.2 billion in Q4 and $3.9 billion for the year, while deposits grew by $2 billion in the quarter and $3 billion for the year [15] - The banking operations saw significant growth, with high-quality C&I originations at $518 million, accounting for 43% of total loan originations in the quarter [16] - Wealth management business saw assets increase by $282 million in Q4, ending the year at a record $5.7 billion, with a combined pre-tax profitability of 25% [19] Market Data and Key Metrics Changes - The company expanded into Texas, moving its principal office to Dallas and planning to open a retail branch in Plano [9] - The acquisition of TGR Financial provided access to a solid client base and approximately $2.2 billion in deposits [35] - The company reported that 37% of total deposits were non-interest-bearing, with core deposits accounting for 99% of total deposits [36] Company Strategy and Development Direction - The company is focused on expanding its presence in Florida and Texas, with plans for further M&A activity in these markets [61] - A strategic investment in NYDIG for Bitcoin-related solutions is expected to enhance service offerings [24] - The company aims to maintain a strong efficiency ratio of around 50% even as it grows beyond $10 billion in assets [49] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the future, citing strong pipelines and growth potential in Texas and Florida [44] - The company anticipates loan growth to track closely with the previous year, with expectations of around $4 billion to $4.4 billion in originations for 2022 [59] - Management noted that the margin is expected to stabilize, with a focus on maintaining a favorable loan-to-deposit ratio [57] Other Important Information - The company completed several strategic projects in 2021, including the launch of a new mobile app and the successful securitization of multifamily loans [12] - The allowance for credit losses increased to $33.8 million, or 0.49% of total loans, due to the acquisition of TGR Financial [27] - Non-interest expense increased to $39.6 million, with a strong efficiency ratio of 51% for the quarter [28] Q&A Session Summary Question: Growth outlook and loan pipeline composition - Management indicated that the pipeline is at record levels, with expectations for 50% to 55% multifamily loans and a strong focus on C&I loans in Texas and Florida [42][43] Question: Integration of TGR Financial and expense outlook - Integration is progressing well, with expected cost savings of 30% and a projected non-interest expense run rate of $46 million to $47 million for the year [48] Question: Margin sensitivity and loan yields - Management discussed the margin's sensitivity to cash redeployment and the impact of higher yielding loans paying off, with expectations for stabilization in the second quarter [56][57] Question: Rate sensitivity and deposit beta - The company models a deposit beta of 10% and anticipates that loan yields will outpace deposit rates over time [68] Question: Profitability goals for 2023 - Management aims for a return on average common equity between 15% and 17%, and a return on assets of approximately 1.25% to 1.55% [84][86]

Financial Performance - For the three months ended September 30, 2021, net income was $37.2 million, an increase from $30.9 million in the same period of 2020, representing a 20.8% growth [118]. - Income before taxes for the three months ended September 30, 2021, was $51.9 million, up from $43.1 million in 2020, reflecting an increase of $8.8 million or 20.4% [118]. - For the nine months ended September 30, 2021, net income was $85.6 million, compared to $62.0 million in 2020, marking a 37.7% increase [120]. - Noninterest income for the three months ended September 30, 2021, was $30.680 million, compared to $23.641 million in 2020, showing a significant increase of 29.6% [118]. - Net interest income for the nine months ended September 30, 2021, was $171.326 million, compared to $144.932 million in 2020, reflecting an increase of 18.1% [120]. Loan and Deposit Growth - Total loans increased by $501 million in the nine months ended September 30, 2021, due to $2.7 billion in originations and $56 million in loan purchases, partially offset by $1.8 billion in payoffs and $419 million in loan sales [112]. - Total deposits rose by $932 million, and total revenues increased by 21% compared to the nine months ended September 30, 2020 [113]. - Deposits grew by $932 million, with commercial deposits increasing by $1.1 billion, while wholesale deposits decreased by $223 million [143]. - The company reported a net increase of $932 million in deposits during the nine months ended September 30, 2021 [174]. Asset Management - The company reported a total of $7.935 billion in assets as of September 30, 2021, up from $7.018 billion in 2020, representing a growth of 13.0% [122]. - Total assets increased by $778 million during the nine months ended September 30, 2021, primarily due to an increase in loans and cash [141]. - Total Assets Under Management (AUM) increased by $502 million (10.2%) during the nine months ended September 30, 2021, resulting from $344 million in new accounts and $362 million in portfolio gains, offset by $204 million in terminations and net withdrawals [134]. Credit Quality - The provision for credit losses decreased to $(417) thousand in Q3 2021 from $1.548 million in Q3 2020, indicating improved credit quality [118]. - The total allowance for credit losses (ACL) related to loans was $20,985,000 as of September 30, 2021, down from $24,200,000 as of December 31, 2020 [167]. - The ACL represented 0.40% of total loans outstanding as of September 30, 2021, compared to 0.50% as of December 31, 2020 [160]. Operational Changes - The COVID-19 pandemic has caused significant economic disruptions, affecting customer loan obligations and demand for services, with approximately 20% of corporate employees still working remotely [116]. - The company continues to implement safety protocols and alternative procedures, such as electronic signatures, to maintain effective internal controls over financial reporting [116]. - The company’s financial condition at September 30, 2021, is compared to December 31, 2020, indicating significant changes in operations [112]. Expenses and Staffing - Compensation and benefit costs accounted for 57% of total noninterest expense in Banking and 78% in Wealth Management for the nine months ended September 30, 2021 [117]. - Noninterest expense for Wealth Management for the nine months ended September 30, 2021 was $17.441 million, compared to $16.735 million in the same period in 2020, indicating a 4.2% increase [138]. - Noninterest expenses for Wealth Management increased by $1.2 million (24.5%) in Q3 2021 compared to Q3 2020, mainly due to higher compensation and benefits [138]. - The number of Full-Time Equivalents (FTE) in Banking increased to 485.0 in Q3 2021 from 424.8 in Q3 2020, reflecting staffing growth to support increased loans and deposits [137]. Capital and Liquidity - FFB's CET1 capital ratio was 11.31% as of September 30, 2021, with actual capital amounting to $666.68 million, exceeding the required ratio of 4.50% [180]. - The total risk-based capital ratio for FFB was 11.71% as of September 30, 2021, with actual capital of $698.42 million, surpassing the minimum requirement of 8.00% [180]. - FFB had $23.4 million of available liquidity as of September 30, 2021, along with a revolving line of credit, indicating strong financial resources [183]. Future Outlook - The proposed merger with TGR Financial is expected to close in the fourth quarter of 2021, subject to regulatory approvals, with an exchange ratio of 0.6068 shares of FFI common stock for each share of TGR Financial common stock [114]. - The company expects continued growth in total assets as a result of its growth strategy in banking operations [140]. - The company intends to explore opportunities for growth, which may include opening additional offices or acquiring complementary businesses [186].

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 ...

Financial Performance - Total loans increased by $702 million in the six months ended June 30, 2021, due to $1.9 billion in originations and $56 million in loan purchases, partially offset by $1.3 billion in payoffs or scheduled payments [112]. - Total deposits rose by $1.2 billion, and total revenues increased by 22% compared to the six months ended June 30, 2020 [113]. - Net income for the three months ended June 30, 2021, was $26.1 million, up from $17.9 million in the same period in 2020, reflecting a significant increase in profitability [118]. - Income before taxes for the three months ended June 30, 2021, was $36.3 million, compared to $25.1 million in the prior year, driven by higher net interest income and lower provision for credit losses [118]. - Income before taxes for the first six months of 2021 was $67,550,000, up from $43,719,000 in 2020, marking a substantial increase of 54.5% [121]. - Net interest income for 2021 was $57,910,000, an increase from $48,447,000 in 2020, representing a growth of 19.1% [119]. - Noninterest income for the first six months of 2021 was $25,943,000, an increase from $19,644,000 in 2020, reflecting a growth of 32.1% [121]. - The provision for credit losses decreased significantly to $404,000 in 2021 from $5,431,000 in 2020, indicating improved asset quality [121]. Assets and Liabilities - Total assets increased to $7,459,348,000 in 2021 from $6,742,588,000 in 2020, representing a growth of 10.6% [123]. - Total liabilities and equity stood at $7,939,134 thousand as of June 30, 2021 [144]. - Shareholders' equity increased to $734,018 thousand as of June 30, 2021 [144]. - Total interest-bearing liabilities decreased to $3,945,338,000 in 2021 from $4,602,841,000 in 2020, a reduction of 14.3% [123]. - The total allowance for credit losses as of June 30, 2021, was $22,272,000, with $19,907,000 allocated for collectively evaluated loans [170]. Deposits and Loans - Deposits grew by $1.2 billion, including a $1.3 billion increase in commercial deposits and a $119 million increase in branch deposits [146]. - Loans and loans held for sale increased by $702 million during the six months ended June 30, primarily due to $1.9 billion in originations and $56 million in loan purchases, partially offset by payoffs of $1.2 billion [154]. - The loan-to-deposit ratio was 84.6% as of June 30, 2021, compared to 89.8% as of December 31, 2020 [178]. Operational Changes and Challenges - The COVID-19 pandemic has caused economic disruptions, impacting customer loan obligations and demand for services, with ongoing safety protocols in place [116]. - The company continues to operate under a Pandemic Response Business Continuity Plan, with approximately 20% of corporate employees working remotely [116]. - The company has implemented alternative procedures, such as electronic signatures, to maintain effective internal controls over financial reporting processes during the pandemic [116]. Mergers and Acquisitions - The proposed merger with TGR Financial is expected to close in the fourth quarter of 2021, subject to regulatory and shareholder approvals, with an exchange ratio of 0.6068 shares of FFI common stock for each share of TGR Financial common stock [114]. - The company intends to pursue growth opportunities, including the proposed acquisition of TGR Financial [189]. Expenses and Compensation - Compensation and benefit costs accounted for 57% of total noninterest expense in Banking and 77% in Wealth Management for the six months ended June 30, 2021 [117]. - Total noninterest expense for the six months ended June 30, 2021, was $57.4 million, up from $51.3 million in the same period of 2020, driven by increases in compensation and benefits [141]. - For the three months ended June 30, 2021, total noninterest expense was $28.9 million, an increase from $25.0 million in the same period of 2020, primarily due to higher compensation and benefits, professional services, and marketing expenses [140]. Capital and Liquidity - The company's CET1 capital ratio was 11.59% as of June 30, 2021, exceeding the regulatory requirement of 4.50% [183]. - The total risk-based capital ratio for the company was 12.17% as of June 30, 2021, surpassing the minimum requirement of 8.00% [183]. - The company had $14.4 million in available liquidity as of June 30, 2021, along with a revolving line of credit [186]. - The company’s liquidity management focuses on generating cash to meet funding needs, with available lines of credit totaling $3.0 billion as of June 30, 2021 [174].

First Foundation Inc. (NYSE:FFWM) Q2 2021 Results Conference Call July 27, 2021 11:00 AM ET Company Participants Scott Kavanaugh - Chief Executive Officer Kevin Thompson - Chief Financial Officer David DePillo - President Conference Call Participants Matthew Clark - Piper Sandler & Co. Stephen Moss - B. Riley Securities, Inc. Gary Tenner - D.A. Davidson & Co. David Chiaverini - Wedbush Securities Inc. Operator Greetings, and welcome to First Foundation’s Second Quarter 2021 Earnings Conference Call. Today’s ...

Company Overview - First Foundation is a multi-diversified regional financial services company with a personal touch, operating in four states: CA, TX, NV, and HI [7] - The company has \$7.107 billion in deposits [46] - The company has \$6.011 billion in loans [28] - First Foundation's Wealth Management AUM and Trust AUA reached \$6.6 billion [69, 102] Financial Performance - The company's ROAA was 1.32% in 2Q21 YTD [9, 102] - The company's ROATCE was 15.8% in 2Q21 YTD [9, 102] - The company's efficiency ratio was 49.3% in 2Q21 YTD [9, 82] - The company's net interest margin (NIM) was 3.20% in 2Q21 [9] Strategic Initiatives - First Foundation is expanding into Southwest Florida with the acquisition of TGR Financial, Inc, which has \$2.301 billion in total assets [92] - The company's digital deposit channel has balances of \$472 million as of June 30, 2021 [59]

Loans and Deposits - Total loans increased by $321 million in Q1 2021, driven by $765 million in originations and $56 million in loan purchases, partially offset by $500 million in payoffs or scheduled payments [109]. - Loans and loans held for sale rose by $321 million in Q1 2021, with $765 million in originations partially offset by $500 million in payoffs [134]. - Total deposits rose by $332 million, and total revenues increased by 19% compared to Q1 2020 [110]. - Deposits grew by $332 million in Q1 2021, including a $419 million increase in commercial deposits [136]. - The total amount of deposits increased to $6,245,821,000 as of March 31, 2021, up from $5,913,433,000 as of December 31, 2020 [145]. - The loan-to-deposit ratio was 90.1% as of March 31, 2021, compared to 89.8% at the end of 2020 [169]. Financial Performance - Net income for the three months ended March 31, 2021, was $22.4 million, compared to $13.2 million for the same period in 2020, representing a 69% increase [117]. - Net interest income increased by 21% from $44.9 million in Q1 2020 to $54.3 million in Q1 2021, driven by a 12% increase in interest-earning assets and an improved net interest rate spread [121]. - Noninterest income for Banking was $5.3 million in Q1 2021, up from $4.7 million in Q1 2020, primarily due to increased loan fees and trust fees [125]. - Noninterest income for Wealth Management increased by $0.4 million to $6.923 million in Q1 2021 compared to Q1 2020, driven by higher billable AUM [126]. - Noninterest expense for the quarter was $34.5 million, compared to $32.9 million in the same quarter of the previous year, reflecting increased operational costs [117]. Asset Quality - The company reported a decrease in nonperforming assets from $18.2 million in Q1 2020 to $11.9 million in Q1 2021, indicating improved asset quality [121]. - The total allowance for credit losses (ACL) related to loans was $23,180,000 as of March 31, 2021, down from $24,200,000 at the end of 2020 [156]. - The total amount of nonaccrual loans was $26,993,000, which accounted for 0.53% of total loans [151]. - The provision for credit losses for the three months ended March 31, 2021, was $(1,212,000), indicating a reduction in the allowance [156]. - The company experienced a decrease in the ACL due to loan write-downs and charge-offs, reflecting changes in the economic conditions [157]. Economic Outlook - The company anticipates continued improvements in commercial and consumer activity as the U.S. economy recovers from the COVID-19 pandemic [111]. - The CARES Act and subsequent relief packages totaling $4.8 trillion have materially impacted the company's operations and financial results [112]. Capital and Dividends - The CET1 capital ratio was 11.13% as of March 31, 2021, exceeding the regulatory requirement of 4.50% [174]. - The total risk-based capital ratio was 11.71% as of March 31, 2021, above the required 8.00% [174]. - The Company paid a quarterly cash dividend of $0.09 per common share in Q1 2021, with intentions to continue future dividends [179]. - The Company paid $12.5 million in dividends ($0.28 per share) in 2020, adhering to regulatory restrictions on dividend payments [179]. Operational Adjustments - Approximately 30% of corporate employees are still working remotely under the Pandemic Response Business Continuity Plan, with additional safety costs offset by reduced expenses in other areas [114]. - Noninterest expense in Banking rose from $26.2 million in Q1 2020 to $28.6 million in Q1 2021, mainly due to higher compensation and benefits [131]. - The company reported a decrease in cash and cash equivalents by $162 million during Q1 2021, primarily due to funding of loans and investments in securities [137].