First Foundation (FFWM) - 2025 Q1 - Quarterly Results

Financial Performance - Net income for Q1 2025 was $6.9 million, translating to earnings per share of $0.08 (basic and diluted) [2] - Total revenue for the quarter reached $71.4 million, an increase from $64.7 million in the prior quarter, driven by net interest margin expansion from 1.58% to 1.67% [7] - Noninterest income increased to $19.6 million for the quarter, compared to $13.4 million in the prior quarter, driven by a $4.7 million gain on the sale of securities [25] - Net interest income was $51.8 million for the quarter, up from $51.3 million in the prior quarter, while interest income decreased to $141.7 million [21] - The company reported a net income of $6,896 for Q1 2025, a significant recovery from a net loss of $14,111 in Q1 2024 [47] - Noninterest income for Q1 2025 was $19,602, an increase from $12,683 in Q1 2024, representing a growth of approximately 54.5% [47] - The company’s total noninterest expense for Q1 2025 was $61,721, compared to $50,609 in Q1 2024, reflecting an increase of approximately 21.9% [47] - Adjusted net income attributable to common shareholders for Q1 2025 was $7,121 thousand, compared to a loss of $13,873 thousand in Q4 2024 [59] Asset and Loan Management - Total loans amounted to $9.0 billion as of March 31, 2025, a decrease from $9.2 billion at the end of the previous quarter [9] - Total loans held for investment decreased to $7,684,580 as of March 31, 2025, down from $10,086,346 as of March 31, 2024, indicating a decline of approximately 23.9% [46] - Total loans outstanding decreased to $7,679,415,000 from $7,936,215,000 in the previous quarter [52] - Loan fundings totaled $180 million at an average yield of 7.09%, compared to $364 million at an average yield of 7.51% in the prior quarter [10] - Loan fundings significantly decreased to $179,614,000 from $364,475,000 in the previous quarter [53] Deposits and Funding - Total deposits decreased to $9.6 billion as of March 31, 2025, from $9.9 billion as of December 31, 2024, primarily due to a $400 million decrease in higher-cost brokered deposits [16] - Deposits decreased to $9,561,645 as of March 31, 2025, down from $10,638,970 as of March 31, 2024, a decline of approximately 10.1% [46] - Average deposits decreased to $9,775,877 thousand in Q1 2025 from $10,408,736 thousand in Q4 2024, a decline of 6.1% [54] Capital and Equity - Shareholders' equity totaled $1,060.6 million as of March 31, 2025, compared to $1,053.4 million as of December 31, 2024, reflecting a net income of $6.9 million for the quarter [38] - The common equity tier 1 risk-based capital ratio increased to 10.63% as of March 31, 2025, compared to 10.09% as of December 31, 2024 [37] - The total risk-based capital ratio improved to 14.04%, up from 13.34% in the prior quarter [4] - Tangible common equity increased to $969.717 million for the quarter ended March 31, 2025, compared to $962.156 million for December 31, 2024, reflecting a growth of 0.6% [63] - The equity to asset ratio improved to 8.43% for the quarter ended March 31, 2025, up from 8.33% in the previous quarter [63] Efficiency and Cost Management - The efficiency ratio improved to 86.0% for the quarter, compared to 103.1% for the prior quarter, indicating better cost management [31] - The efficiency ratio improved to 86.0% in Q1 2025 from 103.1% in Q4 2024, indicating better cost management [62] Credit Quality - Nonperforming assets to total assets ratio improved to 0.36%, down from 0.37% in the prior quarter [4] - Total nonperforming assets were $44.9 million as of March 31, 2025, down from $46.7 million in the prior quarter [33] - The allowance for credit losses on loans held for investment increased to $35.2 million, with a ratio of 0.46% of total loans held for investment [7] - The allowance for credit losses for investments was $4.0 million as of March 31, 2025, down from $4.1 million in the prior quarter [14] - Provision for credit losses decreased to $3,417,000 from $20,647,000 in the previous quarter [51] Market Recognition - First Foundation Advisors was recognized as one of the top registered investment advisory firms on the CNBC FA100 list for 2024 [8] Future Outlook - The company anticipates continued focus on expanding its client base and enhancing service offerings to drive future growth [42]