First Foundation (FFWM) - 2025 Q3 - Quarterly Results

Financial Performance - First Foundation Inc. reported a net loss of $146.3 million for Q3 2025, translating to a loss per share of ($1.78) [2] - Total revenue for Q3 2025 was $63.6 million, an increase from $51.4 million in the prior quarter [8] - Net interest income decreased to $46.1 million in Q3 2025, down from $50.1 million in the previous quarter [8] - Noninterest income was $17.5 million for the quarter, a significant increase from $1.3 million in the prior quarter [29] - The net loss for Q3 2025 was $(146.323) million, compared to a net loss of $(82.174) million in Q3 2024, indicating worsening financial performance [48] - Basic and diluted net loss per share for Q3 2025 was $(1.78), compared to $(1.23) in Q3 2024 [49] - Adjusted net income attributable to common shareholders was $(146,125) thousand for the quarter ended September 30, 2025 [61] - Adjusted return on average assets was (4.90)% for the quarter ended September 30, 2025 [62] Credit Losses and Provisions - The company recorded a provision for credit losses of $65.0 million during the quarter, raising the allowance for credit losses to 1.40% of loans held for investment [7] - Provision for credit losses increased to $65.045 million in Q3 2025, compared to $282 thousand in Q3 2024, indicating a rise in expected credit losses [48] - The allowance for credit losses on loans held for investment was $101.9 million, or 1.40% of total loans held for investment [39] - The allowance for credit losses to loans held for investment was 1.40%, up from 0.50% in the previous quarter [50] Assets and Liabilities - Total assets increased to $11.91 billion as of September 30, 2025, from $11.59 billion as of June 30, 2025 [47] - Total liabilities rose to $10.99 billion as of September 30, 2025, compared to $10.54 billion as of June 30, 2025 [47] - Average assets totaled $11.9 billion for the current quarter, down from $12.2 billion in the prior quarter [16] - Total loans outstanding as of September 30, 2025, were $7,296,895, a decrease of 3.25% from $7,542,865 in the previous quarter [53] Deposits and Funding - Total deposits increased to $9.3 billion as of September 30, 2025, compared to $8.6 billion at the end of the previous quarter [8] - Deposits increased to $9.29 billion as of September 30, 2025, up from $8.59 billion as of June 30, 2025 [47] - The loan to deposit ratio was 83.6% as of September 30, 2025, compared to 93.4% as of June 30, 2025 [5] Efficiency and Costs - The efficiency ratio improved to 90.0% in Q3 2025, down from 116.0% in the previous quarter [2] - Customer service costs decreased to $9.1 million in Q3 2025, down from $13.0 million in the prior quarter [8] - Total noninterest expense for Q3 2025 was $57.482 million, slightly down from $60.225 million in Q3 2024 [48] Equity and Book Value - Shareholders' equity decreased to $917.9 million as of September 30, 2025, from $1,050.6 million as of June 30, 2025, primarily due to a net loss of $146.3 million for the quarter [42] - The tangible book value per common share was $10.02 as of September 30, 2025, down from $11.65 as of June 30, 2025, reflecting a decline of 14.0% [42] - Book value per common share decreased to $11.10 in Q3 2025 from $12.75 in Q2 2025, a decline of approximately 13.0% [65] Mergers and Future Outlook - First Foundation announced a merger with FirstSun Capital Bancorp, expected to create a combined entity with $17 billion in assets [3] - The forward-looking statements indicate potential risks including credit losses and changes in economic conditions that could impact future financial performance [44]