Earnings release
Page 1
First Foundation Inc. (NYSE: FFWM) October 30, 2025 Investor contact: Jamie Britton, jbritton@ff-inc.com | 949-476-0300 Exhibit 99.1 FIRST FOUNDATION INC. REPORTS THIRD QUARTER 2025 RESULTS ● Total revenue of $63.6 million for the quarter, compared to $51.4 million in the prior quarter. ● Recorded $65.0 million in provision for credit losses during the quarter, increasing the allowance for credit losses to 1.40% of loans held for investment.● Recorded $94.7 million valuation allowance against the deferred tax asset balance during the quarter.● Net loss of $146.3 million for the quarter or loss per share of ($1.78) (basic and diluted). 3Q25 Key Financial Data Highlights Profitability Metrics 3Q25 2Q25 3Q24 Return on average assets (%) (4.90) (0.25) (2.44) Adjusted return on average assets (%)(a) (4.90) (0.24) 0.08 Return on average common equity (%) (60.6) (3.2) (33.9) Return on average tangible common equity (%)(a) (60.7) (3.1) 1.1 Net interest margin (%) 1.60 1.68 1.50 Efficiency ratio (%)(a) 90.0 116.0 98.1 Income Statement (b) 3Q25 2Q25 3Q24 Net interest income $ 46,078 $ 50,082 $ 49,119 Noninterest income $ 17,519 $ 1,338 ($ 105,580) Net loss attributable to common shareholders ($ 146,323) ($ 7,690) ($ 82,174) Adjusted net (loss) income attributable to common shareholders(a) ($ 146,125) ($ 7,475) $ 2,679 Loss per share ($ 1.78) ($ 0.09) ($ 1.23) Adjusted (loss) earnings per share (basic) (a) ($ 1.77) ($ 0.09) $ 0.04 Adjusted (loss) earnings per share (diluted) (a) ($ 1.77) ($ 0.09) $ 0.04 Balance Sheet (b) 3Q25 2Q25 3Q24 Total loans $ 7,769,692 $ 8,025,050 $ 9,877,258 Total deposits $ 9,293,071 $ 8,593,693 $ 10,304,604 Loan to deposit ratio 83.6% 93.4% 95.9% Net charge-off ratio 0.03% 0.003% 0.01% Book value per common share $ 11.10 $ 12.75 $ 15.77 Tangible book value per common share(a) $ 10.02 $ 11.65 $ 13.79 Tangible book value per common share (adjusted) (a) $ 8.16 $ 9.34 $ 9.50 Total risk-based capital ratio 14.67% 14.70% 14.21% ● Announced merger with FirstSun Capital Bancorp. Significant balance sheet re-positioning will unlock First Foundation’s core franchise and migrate it to a higher profitability business model and mix. Expected financial benefits included estimated EPS accretion and improved return metrics, positioning the combined entity for top-tier projected pro forma profitability. ● Pre-provision net revenue of $6.1 million for the quarter, compared to ($8.5 million) for the prior quarter, and $0.8 million for the year-ago quarter (net of the $117.5 million Lower of Cost or Market (“LOCOM”) adjustment associated with the reclassification of loans held for investment to loans held for sale). ● Loan to deposit ratio of 83.6% as of September 30, 2025, compared to 93.4% as of June 30, 2025 and 95.9% as of September 30, 2024. ● Maintained strong liquidity and capital positions: - Total liquidity of $4.4 billion as of September 30, 2025. - Liquidity to uninsured and uncollateralized deposits ratio of 3.18x ● Net interest margin of 1.60% for the quarter, compared to 1.68% for the prior quarter and 1.50% for the year-ago quarter. ● Nonperforming assets to total assets of 0.33% for the quarter, compared to 0.35% for the prior quarter and 0.33% for the year-ago quarter. (a) Non-GAAP measure. See “Non-GAAP Financial Measures” below (b) Dollars in thousands, except per share data and ratios (c) Capital ratios for 9/30/25 are preliminary DALLAS, TX – First Foundation Inc. (NYSE: FFWM), a financial services company with two wholly-owned operating subsidiaries, First Foundation Advisors (“FFA”) and First Foundation Bank (“FFB”), reported a net loss of $146.3 million, or ($1.78) per share (basic and diluted) for the third quarter of 2025. Results were impacted by the recording of $65.0 million in provision for credit losses and a $94.7 million valuation allowance on deferred tax assets during the quarter. Thomas C. Shafer CEO “Earlier this week we announced our merger with FirstSun Capital Bancorp, signaling an important new chapter for our Company, our team members, customers, clients and shareholders. Immediately, we will become a strong, first-quartile regional bank with $17 billion in assets, serving many of the fastest growing markets in the United States and offering a suite of complimentary products and services designed to serve our customers,” said Thomas C. Shafer, Chief Executive Officer of First Foundation. “Our financial results for the third quarter of 2025 underscore the progress we have made to strengthen our Company, and we are thrilled about the continued improvements our partnership with the FirstSun team will provide.” Jamie Britton CFO “The progress we have made towards repositioning our balance sheet provided further benefits this quarter. Though a mix shift to cash and securities weighed on our net interest margin, we recognize a meaningful decline in our customer service costs and the balance sheet’s contribution remained stable. We have completed a deep dive review of our CECL methodology and we are confident the reserve appropriately reflects our expectations for future economic conditions and portfolio performance. I echo Tom’s comments on the strength of our partnership with FirstSun, and I look forward to the opportunities ahead for our teammates, our customers, and our shareholders.”
Page 2
First Foundation Inc. (NYSE: FFWM) October 30, 2025 3Q25 Highlights Financial Results: ● Total revenue of $63.6 million for the quarter, compared to $51.4 million in the prior quarter, and $61.1 million in the year-ago quarter (net of the $117.5 million LOCOM adjustment associated with the reclassification of loans held for investment to loans held for sale). ● Net interest income of $46.1 million for the quarter, compared to $50.1 million in the prior quarter, and $49.1 million in the year-ago quarter. The decrease in net interest income from the prior quarter was due largely to a $328 million decrease in average interest-earning asset balances, offset by a $90 million increase in average interest-bearing liability balances. The full impact of the prior quarter’s $858 million in loan sales was the primary cause of the decrease in average interest- earning asset balances. ● Net interest margin (“NIM”) decreased to 1.60% for the quarter, down from 1.68% in the prior quarter and up from 1.50% in the year-ago quarter. Although the net interest rate spread between interest- earning assets and interest-bearing liabilities increased to 0.86% for the current quarter compared to 0.82% in the prior quarter, the NIM was proportionately impacted by the aforementioned decrease in average interest-earning asset balances. ● The allowance for credit losses on loans held for investment totaled $101.9 million as of September 30, 2025, compared to $37.6 million at prior quarter-end. The ratio of allowance for credit losses to total loans held for investment was 1.40% as of September 30, 2025, compared to 0.50% at prior quarter-end. During the quarter, $65.0 million in provision for loan losses was recorded (net of net charge-offs of $0.5 million) due to changes in ACL quantitative assumptions aggregately considered a change in accounting estimate made prospectively beginning with the quarter ending September 30, 2025. In addition, $16.8 million of the quarterly provision is associated with one large C&I loan which was moved from pooled evaluation to individually evaluated loans. ● Income tax expense of $87.4 million for the quarter includes the impact of recording a deferred tax asset valuation allowance, which fully reserves for the deferred tax asset balance. The current quarter loss, as well as cumulative losses over the past three years and estimates of our future taxable income and projected tax positions were assessed by management which concluded that the deferred tax assets were not more likely than not to be realized, thereby requiring a valuation allowance. ● Noninterest expense to average total assets (annualized) of 1.93% for the quarter, compared to 1.96% for the prior quarter and compared to 1.79% for the year-ago quarter. Noninterest expense totaled $57.5 million for the quarter, compared to $59.9 million in the prior quarter, and $60.2 million in the year-ago quarter. ● Customer service costs decreased to $9.1 million during the quarter compared to $13.0 million in the prior quarter, and $19.0 million in the year-ago quarter. The decrease was largely due to a meaningful portion of the deposits ($0.5 billion) associated with these costs being exited late in the prior quarter in conjunction with the final loan sale transaction. ● Recorded $4.7 million income on capital market activities during the quarter. Capital market activities consist of $4.7 million in gains on the valuation of our loans held for sale portfolio, net of associated unrealized derivative losses of $41 thousand. ● Asset management and trust income totaled $8.6 million during the quarter, unchanged from the prior quarter, and compared to $9.2 million in the year-ago quarter. ● Nonperforming assets (“NPAs”) to total assets were 0.33%, compared to 0.35% in the prior quarter. ● Cash and cash equivalents totaled $1.7 billion, representing 14.5% of total assets at September 30, 2025, compared to $1.1 billion or 9.1% of total assets at June 30, 2025. ● Combined available credit facilities from the Federal Home Loan Bank and the Federal Reserve Bank’s discount window totaled $2.3 billion. An additional $240 million is available in uncommitted federal funds credit lines. ● Tangible book value per common share as converted (non-GAAP measure) was $8.16 as of September 30, 2025, compared to $9.34 as of June 30, 2025. ● Total tangible common equity of $828 million and tangible book value per common share of $10.02 (non-GAAP measures) as of September 30, 2025, compared to $960 million and $11.65 per common share, respectively as of June 30, 2025. ● $36.8 million (tax-effected) in combined unrealized/unrecognized losses on our combined investment securities portfolio (available-for-sale and held-to-maturity portfolios), compared to $53.9 million in the prior quarter. ● Deposits totaled $9.3 billion as of September 30, 2025, compared to $8.6 billion as of June 30, 2025. Core and wholesale deposits totaled $6.8 billion and $2.5 billion respectively as of September 30, 2025, compared to $6.7 billion and $1.9 billion respectively as of June 30, 2025. Cost of deposits totaled 3.11% for the quarter compared to 2.95% for the prior quarter. ● Loan to deposit ratio totaled 83.6% at September 30, 2025, compared to 93.4% for the prior quarter.
Page 3
Investor contact: Jamie Britton, jbritton@ff-inc.com | 949-476-0300
Page 4
FIRST FOUNDATION INC. THIRD QUARTER 2025 RESULTS Page 3 of 20 Other Activity: ● Loan fundings totaled $265 million at an average yield of 7.00% for the current quarter compared to $256 million at an average yield of 7.18% in the prior quarter. ● Average assets totaled $11.9 billion for the current quarter, compared to $12.2 billion for the prior quarter. ● Average assets under management (“AUM”) balances at FFA were $5.2 billion for the quarter, relatively unchanged from the prior quarter. Trust assets under advisement (“AUA”) at FFB were $1.2 billion, relatively unchanged from the prior quarter. Spotlight First Foundation Advisors Recognized as a Top Registered Advisory Firm by Barron’s First Foundation Advisors Named to CNBC FA100 List First Foundation Advisors made Barron’s list of the top 100 registered investment advisory firms in 2024. The annual list evaluates financial advisors based on a proprietary set of criteria, including type of assets under management, growth of advisors’ practice, client retention, and quantitative factors such as the advisors’ experience, their advanced degrees, industry designations, philanthropic efforts, and other metrics. First Foundation Advisors was recognized as one of 2024’s top registered investment advisory firms on the CNBC FA100 list. First Foundation Advisors ranked #55 on the national list and marks the third consecutive year that it has been recognized on the list. The rankings were based on a number of factors, including total assets under management, years in business, and accounts managed. Please Note: Limitations. Neither rankings nor recognitions by unaffiliated rating services, publications, media, or other organizations, nor the achievement of any professional designation, certification, degree or license, membership in any professional organization, or any amount of prior experience or success, should be construed by a client or prospective client as a guarantee that the client will experience a certain level of results if the firm is engaged, or continues to be engaged, to provide investment advisory services. A fee was not paid by the firm to receive the ranking. The ranking is based upon specific criteria and methodology (see ranking criteria/methodology). No ranking or recognition should be construed as an endorsement by any past or current client of the firm. Details Loan balances totaled $7.8 billion as of September 30, 2025, compared to $8.0 billion and $9.9 billion as of June 30, 2025, and September 30, 2024, respectively. Loan balances consisted of $7.3 billion in loans held for investment and $0.5 billion in loans held for sale at September 30, 2025 compared to $7.5 billion in loans held for investment and $0.5 billion in loans held for sale at June 30, 2025. Loan fundings totaled $265 million, offset by loan payments and payoffs of $525 million, in the quarter. This compares to loan fundings totaling $256 million, offset by loan payments and payoffs of $408 million, in the prior quarter and loan fundings totaling $366 million, offset by loan payments and payoffs of $467 million in the year-ago quarter. Commercial and industrial (“C&I”) loans accounted for 81% of total fundings for the quarter. C&I loans consist primarily of commercial revolving lines of credit and term loans. There were no loan sales in the quarter. The fair value adjustment of the remaining $0.5 billion in loans held for sale at September 30, 2025 was 95.7%, compared to 94.6% at June 30, 2025. Loan portfolio average yield was 4.72% in the quarter, an increase of 7 basis points compared to 4.65% in the prior quarter, and a decrease of 5 basis points compared to 4.77% in the year- ago quarter. Average yields on new loan fundings were 7.00% in the quarter, compared to 7.18% in the prior quarter and 8.23% for the year-ago quarter. Investment Securities Investment securities were $2.2 billion as of September 30, 2025, compared to $2.1 billion and $2.0 billion as of June 30, 2025, and September 30, 2024, respectively. During the quarter, $320 million in investment securities Loans
Page 6
FIRST FOUNDATION INC. THIRD QUARTER 2025 RESULTS Page 4 of 20 were purchased, offset by $196 million in sales and $67 million in principal paydowns. The investment securities purchased during the quarter consisted of collateralized mortgage obligations at a combined weighted average yield of 5.28%. The allowance for credit losses for investments was $0.6 million as of September 30, 2025, compared to $0.7 million from the prior quarter. Unrealized losses (tax-effected) on the available-for-sale portfolio totaled $1.2 million as of September 30, 2025, compared to $11.8 million as of June 30, 2025. Unrecognized losses (tax-effected) on the held-to-maturity portfolio totaled $35.6 million as of September 30, 2025, compared to $42.1 million as of June 30, 2025. Combined unrealized and unrecognized losses (tax-effected) on the available-for- sale and held-to-maturity portfolios totaled $36.8 million, or 1.67% of the combined portfolios as of September 30, 2025, compared to $53.9 million or 2.52% of the combined portfolios as of June 30, 2025. The decrease in unrealized and unrecognized losses (tax-effected) was largely driven by the decrease in treasury rates during the quarter. Investment securities portfolio average yield was 4.41% in the quarter, compared to 4.34% in the prior quarter and 4.23% in the year-ago quarter. Deposits and Borrowings Deposits were $9.3 billion as of September 30, 2025, compared to $8.6 billion as of June 30, 2025, and $10.3 billion as of September 30, 2024. The change in deposits from the prior quarter was largely due to increases in wholesale and corporate deposits, which were offset by a decrease in retail deposits. Noninterest-bearing deposits accounted for 16% of total deposits, down from 17% in the prior quarter and 21% in the year-ago quarter. The decrease in the percentage of noninterest- bearing deposits from the prior and year-ago quarters is reflective of the prior quarter’s decrease in specialty deposits, mostly consisting of higher-cost MSR deposit relationships which are subject to customer service costs. As a result of the prior quarter’s decrease in specialty deposit balances, the current quarter’s customer service cost expense decreased to $9.1 million compared to $13.0 million in the prior quarter. Core deposits accounted for 66% of total deposits as of September 30, 2025, compared to 70% in the prior quarter and 64% in the year-ago quarter. Brokered deposits accounted for 34% of total deposits as of September 30, 2025, compared to 30% in the prior quarter and 36% in the year-ago quarter. Cost of deposits was 3.11% for the quarter, compared to 2.95% for the prior quarter and 3.41% for the year-ago quarter. Insured and collateralized deposits accounted for approximately 85% of total deposits as of September 30, 2025, relatively unchanged from the prior quarter. Our loan to deposit ratio measured 83.6% as of September 30, 2025, compared to 93.4% and 95.9% as of June 30, 2025, and September 30, 2024, respectively. Borrowings were down to $1.4 billion as of September 30, 2025, compared to $1.7 billion at June 30, 2025, the result of the maturity of a 4.55% fixed-rate borrowing from the FHLB during the quarter. Average borrowings outstanding were $1.4 billion or 12.0% of average assets for the quarter, compared to $1.7 billion or 14.2% of average assets for the prior quarter and $1.7 billion or 12.6% for the year-ago quarter. The weighted average rate paid on borrowings was 4.07% for the quarter, compared to 4.16% for the prior quarter and 4.04% for the year-ago quarter.
Page 7
FIRST FOUNDATION INC. THIRD QUARTER 2025 RESULTS Page 5 of 20 As of September 30, 2025, our total unused borrowing capacity was $2.6 billion, which consists of $2.3 billion in available lines of credit with the FHLB and the Federal Reserve Bank’s discount window as well as an additional $240 million in available lines of credit with other correspondent banks. Private Wealth Management and Trust Assets Our AUM balance was $5.1 billion as of September 30, 2025, compared to $5.3 billion as of June 30, 2025, and $5.5 billion as of September 30, 2024. Average AUM balances were $5.2 billion for the current quarter, relatively unchanged from the prior quarter and compared to $5.5 billion for the year-ago quarter. Activity within the AUM balance during the quarter consisted of the following: $27 million of new accounts; $416 million of net withdrawals; and $222 million of performance gains. AUA at FFB’s Trust Department was $1.2 billion as of September 30, 2025, relatively unchanged from the prior quarter and compared to $0.9 billion from the year- ago quarter. Net Interest Income and Net Interest Margin Net interest income was $46.1 million for the quarter, compared to $50.1 million for the prior quarter and $49.1 million for the year-ago quarter. Interest income totaled $134.7 million for the quarter, compared to $137.1 million for the prior quarter and $157.2 million for the year-ago quarter. The decrease in interest income compared to the prior quarter was due to a decrease in average interest-earning asset balances, offset by an increase in the average rates earned on such balances. Average interest-earning asset balances totaled $11.6 billion for the quarter, compared to $11.9 billion for the prior quarter and $13.2 billion for the year-ago quarter. Yields on interest-earning assets averaged 4.64% for the quarter, compared to 4.61% for the prior quarter and 4.75% for the year-ago quarter. Interest expense was $88.7 million for the quarter, compared to $87.0 million for the prior quarter and $108.0 million for the year-ago quarter. The increase in interest expense compared to the prior quarter was due primarily to an increase in average interest-bearing liability balances, offset by a decrease in rates paid on such balances. Average interest- bearing liability balances, consisting of interest-bearing deposits, borrowings, and subordinated debt, totaled $9.3 billion for the quarter, compared to $9.2 billion from the prior quarter and $10.1 billion for the year-ago quarter. Rates on interest-bearing liability balances averaged 3.78% for the quarter, compared to 3.79% for the prior quarter and 4.24% for the year-ago quarter. Rates on interest-bearing deposits averaged 3.71% for the quarter, compared to 3.70% for the prior quarter and 4.29% for the year-ago quarter. Rates on borrowings averaged 4.07% for the quarter, compared to 4.16% for the prior quarter and 4.04% for the year-ago quarter. Rates on $24.2 million of the Company’s subordinated debt repriced during the quarter, which resulted in approximately $0.3 million in additional interest expense for the quarter. The decrease in average interest-earning assets balances and increase in interest-bearing liability balances largely contributed to a decrease in NIM during the quarter. NIM was 1.60% for the quarter, compared to 1.68% for the prior quarter and 1.50% for the year-ago quarter. Noninterest Income Noninterest income totaled $17.5 million for the quarter, compared to $1.3 million in the prior quarter and ($105.6) million in the year-ago quarter. The prior quarter’s noninterest income included a $10.4 million loss on the sale of $858 million in loans held for sale and the year-ago quarter included a $117.5 million market valuation adjustment recorded in conjunction with the reclassification of $1.9 billion in multifamily loans from loans held for investment to loans held for sale. There were no loan sale transactions during the quarter and the remaining loans held for sale balance totaled $467 million at September 30, 2025.
Page 8
FIRST FOUNDATION INC. THIRD QUARTER 2025 RESULTS Page 6 of 20 Capital markets activity generated a gain of $4.7 million for the quarter, compared to a loss of $0.3 million in the prior quarter. Current quarter’s capital markets activity consisted of unrealized gains on the valuation of the loans held for sale portfolio net of corresponding derivative losses. The fair value of the loans held for sale portfolio at September 30, 2025 was 95.7%, compared to 94.6% at June 30, 2025, and 93.8% at the time of transfer in August 2024. Asset management, consulting and other fees totaled $8.6 million for the quarter, relatively unchanged compared to the prior quarter and compared to $9.2 million for the year-ago quarter. Deposit charges and service fees, loan and servicing fees, and other noninterest income totaled $3.0 million for the quarter, compared to $3.4 million for the prior quarter and $2.8 million for the year-ago quarter. Noninterest Expense Noninterest expense was $57.5 million in the quarter, compared to $60.0 million in the prior quarter and $60.2 million in the year-ago quarter. Noninterest expense to average total assets was 1.93% in the quarter, compared to 1.96% in the prior quarter and compared to 1.79% in the year-ago quarter. Compensation and benefits expense totaled $23.7 million for the quarter, compared to $22.9 million for the prior quarter and $20.0 million for the year-ago quarter. Headcount averaged 563 FTEs for the quarter, relatively unchanged from the prior quarter and 552 for the year-ago quarter. The increase in compensation and benefits expense is largely the result of investments made to bring in talent and retain institutional knowledge needed to organize around our strategic initiatives. Occupancy and depreciation expense totaled $8.9 million for the quarter, compared to $8.3 million for the prior quarter and $9.0 million for the year-ago quarter. Professional services and marketing costs totaled $6.8 million for the quarter, compared to $7.2 million for the prior quarter and $5.1 million for the year-ago quarter. Customer service costs totaled $9.1 million for the quarter, compared to $13.0 million in the prior quarter, and $19.0 million in the year-ago quarter. The current quarter’s customer service cost expense benefitted from the prior quarter’s $784 million reduction in higher-cost specialty deposits, $540 million of which consisted of MSR deposits subject to customer service costs. Our efficiency ratio (non-GAAP) for the quarter improved to 90.0%, compared to 116% for the prior quarter and 98.1% for the year-ago quarter. The efficiency ratio is a measure of noninterest expense to revenue (net interest income plus noninterest income) on an adjusted basis. Income Tax Expense We recorded income tax expense of $87.4 million in the quarter, compared to a tax benefit of $3.2 million in the prior quarter and a tax benefit of $34.8 million in the year-ago quarter. During the quarter, a deferred tax asset valuation allowance which fully reserves for the deferred tax asset balance was recorded. The current quarter’s loss, as well as cumulative losses over the past three years and estimates of our future taxable income and projected tax positions were assessed by management which concluded that the deferred tax assets were not more likely than not to be realized, thereby requiring the valuation allowance. Asset Quality Total nonperforming assets were $39.7 million as of September 30, 2025, compared to $40.8 million and $44.4 million as of June 30, 2025, and September 30, 2024, respectively. Our ratio of nonperforming assets to total assets was 0.33% as of September 30, 2025, compared to 0.35% and 0.33% as of June 30, 2025, and September 30, 2024, respectively. Total delinquent and nonaccrual loans were $44.6 million or 0.61% of total loans held for investment
Page 10
FIRST FOUNDATION INC. THIRD QUARTER 2025 RESULTS Page 7 of 20 as of September 30, 2025, compared to $49.8 million or 0.66% of total loans held for investment as of June 30, 2025, and $67.4 million or 0.83% of total loans held for investment as of September 30, 2024. Our allowance for credit losses on loans held for investment was $101.9 million, or 1.40% of total loans held for investment as of September 30, 2025, compared to $37.6 million, or 0.50% of total loans held for investment as of the prior quarter, and $29.3 million, or 0.36% of total loans held for investment as of the year-ago quarter. During the quarter, $65.0 million in provision for loan losses was recorded (net of net charge-offs of $0.5 million) due to changes in ACL quantitative assumptions aggregately considered a change in accounting estimate made prospectively beginning with the quarter ending September 30, 2025. In addition, $16.8 million of the quarterly provision is associated with one large C&I loan which was moved from pooled evaluation to individually evaluated loans. Net charge-offs were $0.5 million or 0.03% (annualized) of average loan balances for the quarter, compared to $0.1 million or 0.003% (annualized) for the prior quarter, and net charge-offs of $0.3 million or 0.01% (annualized) of average loan balances for the year-ago quarter. The ratio of the allowance for credit losses for loans to total past due and nonaccrual loans was 228.4% as of September 30, 2025, compared to 75.4% and 43.5% as of the prior and year-ago quarters, respectively. Capital The following table sets forth our regulatory capital ratios as of the dates indicated: As of (unaudited) September 30, June 30, September 30, First Foundation Inc. 2025 2025 2024 Common equity tier 1 risk-based capital ratio 10.22% 11.08% 10.31% Tier 1 leverage ratio 7.68% 8.29% 7.64% Tier 1 risk-based capital ratio 11.29% 12.13% 11.81% Total risk-based capital ratio 14.67% 14.70% 14.21% First Foundation Bank Common equity tier 1 risk-based capital ratio 13.16% 13.91% 13.41% Tier 1 leverage ratio 8.94% 9.49% 8.65% Tier 1 risk-based capital ratio 13.16% 13.91% 13.41% Total risk-based capital ratio 14.41% 14.41% 13.81% (1) The minimum regulatory requirements for classification as a well-capitalized institution are a common equity tier 1 risk- based capital ratio of 6.5%; a tier 1 leverage ratio of 5.00%; a tier 1 risk-based capital ratio of 8.00%; and a total risk- based capital ratio of 10.00%. The September 30, 2025 ratios are preliminary and subject to change until the filings of our FR Y-9C report (First Foundation Inc.) and Call Report (First Foundation Bank) for September 30, 2025 are completed. Shareholders' equity totaled $917.9 million as of September 30, 2025, compared to $1,050.6 million and $1,069.8 million as of June 30, 2025, and September 30, 2024, respectively. The change from the prior quarter consists primarily of the net loss of $146.3 million for the quarter, offset by a decrease in the net loss in accumulated other comprehensive income (“AOCI”) of $12.6 million for the quarter. The decrease in the net loss in AOCI was due to a $12.8 million reduction in unrealized holding losses on the securities portfolio, offset by a $0.2 loss associated with the cash flow hedge. At September 30, 2025, there were no declared dividends outstanding with respect to preferred or common stock. Our tangible book value per common share (non-GAAP measure) was $10.02 as of September 30, 2025, compared to $11.65 as of June 30, 2025, and $13.79 as of September 30, 2024. Our tangible book value per common share as converted (non-GAAP measure) was $8.16 as of September 30, 2025, compared to $9.34 as of June 30, 2025 and $9.50 as of September 30, 2024.
Page 11
FIRST FOUNDATION INC. THIRD QUARTER 2025 RESULTS Page 8 of 20 Earnings Call Info About First Foundation First Foundation Inc. (NYSE: FFWM) and its subsidiaries offer personal banking, business banking, and private wealth management services, including investment, trust, and philanthropy services. This comprehensive platform of financial services is designed to help clients at any stage in their financial journey. The broad range of financial products and services offered by First Foundation are more consistent with those offered by larger financial institutions, while its high level of personalized service, accessibility, and responsiveness to clients is more aligned with those of community banks and boutique wealth management firms. This combination of an integrated platform of comprehensive financial products and personalized service differentiates First Foundation from many of its competitors and has contributed to the growth of its client base and business. Learn more at firstfoundationinc.com, or connect with us on LinkedIn and X (formerly Twitter). Forward-Looking Statements This report includes forward-looking statements within the meaning of the “Safe-Harbor” provisions of the Private Securities Litigation Reform Act of 1995, including forward-looking statements regarding our expectations and beliefs about our future financial performance and financial condition, potential loan sales, as well as trends in our business and markets. 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-looking statements in this report are based on current information and on assumptions that we make about future events and circumstances that are subject to a number of risks and uncertainties that are often difficult to predict and beyond our control. As a result of those risks and uncertainties, our actual financial results in the future could differ, possibly materially, from those expressed in or implied by the forward-looking statements contained in this report and could cause us to change our future plans. Those risks and uncertainties include, but are not limited to, changes in our capital management and balance sheet strategies and our ability to successfully implement such strategies; changes in our strategic plan, and our ability to successfully implement such plan; turnover in our Board of Directors and our executive management team; the risk of incurring credit losses, which is an inherent risk of the banking business; the quality and quantity of our deposits; adverse developments in the financial services industry generally such as bank failures and any related impact on depositor behavior or investor sentiment; risks related to the sufficiency of liquidity; the risk that we will not be able to maintain growth at historic rates or at all; the risk that we will not be able to access the securitization market or otherwise sell loans on favorable terms or at all; changes in general economic conditions, either nationally or locally in the areas in which we conduct or will conduct our business; risks associated with changes in interest rates, which could adversely affect our interest income, interest rate margins, and the value of our interest-earning assets, and therefore, our future operating results; the risk that the performance of our investment management business or of the equity and bond markets could lead clients to move their funds from or close their investment accounts with us, which would reduce our assets under management and adversely affect our operating results; negative impacts of news or analyst reports about us or the financial services industry; the impacts of the federal government shutdown on us and our customers; the impacts of inflation on us and our customers; the impacts of tariffs and trade policies of the U.S. and its global trading partners and uncertainty regarding the same; results of examinations by regulatory authorities and the possibility that such regulatory authorities may, among other things, limit our business activities or our ability to pay dividends, or impose fines, penalties or sanctions; the risk that we may be unable or that our board of directors may determine that it is inadvisable to resume the payment of dividends; risks associated with changes in income tax laws and regulations; and risks associated with seeking new client relationships and maintaining existing client relationships. Additional information regarding these and other risks and uncertainties to which our business and future financial performance are subject is contained in our Annual Report on Form 10-K for the fiscal year ended December 31, 2024, and other documents we file with the SEC from time to time. We urge readers of this report to review those reports and other documents we file with the SEC from time to time. Also, our actual financial results in the future may differ from those currently expected due to additional risks and uncertainties of which we are not currently aware or which we do not currently view as, but in the future may become, material to our business or operating results. Due to these and other possible uncertainties and risks, readers are cautioned not to place undue reliance on the forward-looking statements contained in this report, which speak only as of today's date, or to make predictions based solely on historical financial performance. We also disclaim any obligation to update forward-looking statements contained in this report or in the above-referenced reports, whether as a result of new information, future events or otherwise, except as may be required by law or NYSE rules.
Page 13
FIRST FOUNDATION INC. THIRD QUARTER 2025 RESULTS Page 9 of 20 Contact Investors Jamie Britton EVP, Chief Financial Officer 949-476-0300 jbritton@ff-inc.com
Page 14
FIRST FOUNDATION INC. THIRD QUARTER 2025 RESULTS Page 10 of 20 CONSOLIDATED BALANCE SHEETS (unaudited) (in thousands, except share and per share amounts) September 30, June 30, September 30, 2025 2025 2024 ASSETS Cash and cash equivalents $ 1,726,969 $ 1,055,614 $ 1,106,422 Securities available-for-sale ("AFS") 1,555,773 1,469,773 1,313,419 Securities held-to-maturity ("HTM") 647,619 663,807 734,863 Allowance for credit losses - investments (634) (651) (7,299) Total securities, net 2,202,758 2,132,929 2,040,983 Loans held for sale ("LHFS") 467,277 476,727 1,788,395 Loans held for investment 7,302,415 7,548,323 8,088,863 Less: Allowance for credit losses (101,913) (37,560) (29,300) Total loans held for investment, net 7,200,502 7,510,763 8,059,563 Investment in Federal Home Loan Bank ("FHLB") stock 43,616 50,077 37,810 Accrued interest receivable 45,103 50,538 53,766 Deferred taxes, net - 87,006 65,131 Premises and equipment, net 35,420 35,890 36,605 Real estate owned ("REO") 6,210 6,210 6,210 Bank owned life insurance 51,044 50,686 49,650 Core deposit intangibles 2,672 2,947 3,888 Other assets 128,473 128,975 128,138 Total Assets $ 11,910,044 $ 11,588,362 $ 13,376,561 LIABILITIES AND SHAREHOLDERS’ EQUITY Liabilities: Deposits $ 9,293,071 $ 8,593,693 $ 10,304,604 Borrowings 1,422,063 1,669,315 1,691,453 Subordinated debt 173,506 173,490 173,444 Derivative liabilities 9,081 8,689 5,124 Accounts payable and other liabilities 94,412 92,549 132,139 Total Liabilities 10,992,133 10,537,736 12,306,764 Shareholders’ Equity: Preferred stock 86,797 87,649 130,252 Common stock 83 82 68 Additional paid-in-capital 854,880 852,982 805,819 Retained (deficit) earnings (22,079) 124,244 139,148 Accumulated other comprehensive loss (1,770) (14,331) (5,490) Total Shareholders’ Equity 917,911 1,050,626 1,069,797 Total Liabilities and Shareholders’ Equity $ 11,910,044 $ 11,588,362 $ 13,376,561
Page 15
FIRST FOUNDATION INC. THIRD QUARTER 2025 RESULTS CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited) For the Quarter Ended For the Nine Months Ended (in thousands, except share and September 30, June 30, September 30, September 30, per share amounts) 2025 2025 2024 2025 2024 Interest income: Loans $ 93,054 $ 100,166 $ 120,285 $ 299,720 $ 358,973 Securities 24,933 23,646 21,375 69,674 59,124 Cash, FHLB Stock, and Fed Funds 16,750 13,313 15,496 44,210 40,426 Total interest income 134,737 137,125 157,156 413,604 458,523 Interest expense: Deposits 71,942 67,318 89,135 212,579 275,015 Borrowings 14,744 18,020 17,182 47,698 47,044 Subordinated debt 1,973 1,705 1,720 5,368 5,130 Total interest expense 88,659 87,043 108,037 265,645 327,189 Net interest income 46,078 50,082 49,119 147,959 131,334 Provision for credit losses 65,045 2,366 282 70,828 53 Net interest income after provision for credit losses (18,967) 47,716 48,837 77,131 131,281 Noninterest income: Asset management, consulting and other fees 8,638 8,601 9,162 26,158 26,959 (Loss) gain on sale of loans - (10,405) (13) (10,405) 665 Gain on sale of securities available-for- sale 1,228 - - 5,930 1,204 Capital market activities 4,698 (289) (117,517) 7,240 (115,844) Gain on sale of REO - - - - 679 Other income 2,955 3,431 2,788 9,537 7,098 Total noninterest income 17,519 1,338 (105,580) 38,460 (79,239) Noninterest expense: Compensation and benefits 23,713 22,890 20,009 71,711 58,511 Occupancy and depreciation 8,939 8,333 9,013 25,717 27,126 Professional services and marketing costs 6,838 7,238 5,095 19,984 12,152 Customer service costs 9,068 12,983 18,954 37,102 45,796 Other expenses 8,924 8,480 7,154 24,614 22,878 Total noninterest expense 57,482 59,924 60,225 179,128 166,463 Loss before income taxes (58,930) (10,870) (116,968) (63,537) (114,421) Income tax expense (benefit) 87,393 (3,180) (34,794) 83,580 (36,125) Net loss $ (146,323)$ (7,690)$ (82,174)$ (147,117) $ (78,296) Net loss per share: Basic $ (1.78) $ (0.09) $ (1.23) $ (1.79) $ (1.30) Diluted $ (1.78) $ (0.09) $ (1.23) $ (1.79) $ (1.30) Shares used in computation: Basic 82,424,884 82,386,071 66,992,701 82,395,045 60,025,852
Page 16
Page 11 of 20 Diluted 82,424,884 82,386,071 66,992,701 82,395,045 60,025,852
Page 17
FIRST FOUNDATION INC. THIRD QUARTER 2025 RESULTS SELECTED CONSOLIDATED FINANCIAL DATA AND ASSET QUALITY (unaudited) For the Quarter Ended For the Nine Months Ended (in thousands, except share and per share amounts September 30, June 30, September 30, September 30, and percentages) 2025 2025 2024 2025 2024 Selected Financial Data: Return on average assets (4.90)% (0.25)% (2.44)% (1.60)% (0.79)% Return on average common equity (60.6)% (3.2)% (33.9)% (20.3)% (11.1)% Return on average tangible common equity (1) (60.7)% (3.1)% 1.1% (20.3)% 1.0% Efficiency ratio (2) 90.0% 116.0% 98.1% 95.6% 97.5% Net interest margin 1.60% 1.68% 1.50% 1.65% 1.34% Cost of deposits 3.11% 2.95% 3.41% 3.03% 3.51% Loan to deposit ratio 83.6% 93.4% 95.9% 83.6% 95.9% Noninterest expense to average total assets 1.93% 1.96% 1.79% 1.95% 1.67% Loan fundings $ 264,568 $ 256,192 $ 366,313 $ 700,373 $ 1,183,787 Assets under management $ 5,126,254 $ 5,292,995 $ 5,499,489 $ 5,126,254 $ 5,499,489 Average shareholders' equity to average total assets 8.82% 8.55% 8.10% 8.58% 7.37% Tangible common equity to tangible assets ratio(1) 6.96% 8.29% 7.00% 6.96% 7.00% Book value per common share $ 11.10 $ 12.75 $ 15.77 $ 11.10 $ 15.77 Tangible book value per common share (1) $ 10.02 $ 11.65 $ 13.79 $ 10.02 $ 13.79 Asset Quality: Nonperforming assets Nonaccrual loans$ 33,507 $ 34,627 $ 38,206 $ 33,507 $ 38,206 Other real estate owned 6,210 6,210 6,210 6,210 6,210 Total nonperforming assets $ 39,717 $ 40,837 $ 44,416 $ 39,717 $ 44,416 Loans 30 - 89 days past due $ 10,414 $ 14,843 $ 29,159 $ 10,414 $ 29,159 Accruing loans 90 days or more past due $ 692 $ 355 $ — $ 692 $ — Nonperforming assets to total assets 0.33% 0.35% 0.33% 0.33% 0.33% Loans 30 - 89 days past due to total loans held for investment 0.14% 0.20% 0.36% 0.14% 0.36% Allowance for credit losses to loans held for investment 1.40% 0.50% 0.36% 1.40% 0.36% Allowance for credit losses to past due and nonaccrual loans 228.4% 75.4% 43.5% 228.4% 43.5% Net charge-offs (recoveries) to average loans - annualized 0.03% 0.003% 0.01% 0.01% 0.01%
Page 18
Page 12 of 20 (1) Return on average tangible equity, tangible common equity to tangible assets ratio, and tangible book value per share are non-GAAP financial measures. See disclosures regarding “Use of Non-GAAP Financial Measures” and reconciliations to the most comparable GAAP financial measures included as separate sections in this report. (2) Efficiency Ratio is a non-GAAP financial measure. See disclosures regarding “Use of Non-GAAP Financial Measures” and reconciliations to the most comparable GAAP financial measures included as separate sections in this report.
Page 19
FIRST FOUNDATION INC. THIRD QUARTER 2025 RESULTS Page 13 of 20 SEGMENT REPORTING (unaudited) For the Quarter Ended For the Nine Months Ended September 30, June 30, September 30, September 30, (in thousands) 2025 2025 2024 2025 2024 Banking: Interest income $ 134,737 $ 137,125 $ 157,156 $ 413,604 $ 458,523 Interest expense 86,686 85,338 106,317 260,277 322,059 Net interest income 48,051 51,787 50,839 153,327 136,464 Provision for credit losses 65,045 2,366 282 70,828 53 Noninterest income 10,834 (5,384) 4,598 17,860 16,522 LHFS LOCOM adjustment — — (117,517) — (117,517) Noninterest expense 50,209 51,790 53,206 157,125 147,047 Loss before income taxes (56,369) (7,753) (115,568) (56,766) (111,631) Income tax expense (benefit) 79,775 (2,336) (34,399) 77,066 (35,365) Net loss $ (136,144) $ (5,417) $ (81,169) $ (133,832) $ (76,266) Wealth Management: Noninterest income $ 7,033 $ 7,077 $ 7,704 $ 21,659 $ 22,843 Noninterest expense 6,378 6,706 5,769 20,539 17,129 Income before income taxes 655 371 1,935 1,120 5,714 Income tax expense — 107 551 146 1,632 Net income $ 655 $ 264 $ 1,384 $ 974 $ 4,082 Other and Eliminations: Interest income $ — $ — $ — $ — $ — Interest expense 1,973 1,705 1,720 5,368 5,130 Net interest expense (1,973) (1,705) (1,720) (5,368) (5,130) Noninterest income (348) (355) (365) (1,060) (1,087) Noninterest expense 895 1,428 1,250 1,463 2,287 Loss before income taxes (3,216) (3,488) (3,335) (7,891) (8,504) Income tax expense (benefit) 7,618 (951) (946) 6,368 (2,392) Net loss $ (10,834) $ (2,537) $ (2,389) $ (14,259) $ (6,112)
Page 20
FIRST FOUNDATION INC. THIRD QUARTER 2025 RESULTS Page 14 of 20 LOAN AND DEPOSIT BALANCES (unaudited) For the Quarter Ended September 30, June 30, March 31 December 31September 30 (in thousands) 2025 2025 2025 2024 2024 Loans: Outstanding principal balance: Loans secured by real estate: Residential properties: Multifamily $ 3,271,998$ 3,288,093$ 3,301,295$ 3,341,823$ 3,322,471 Single Family 822,923 822,508 843,637 873,491 889,616 Subtotal 4,094,921 4,110,601 4,144,932 4,215,314 4,212,087 Commercial properties 746,028 818,738 852,006 904,167 952,700 Land and construction 37,734 43,361 44,741 69,246 80,307 Total real estate loans 4,878,683 4,972,700 5,041,679 5,188,727 5,245,094 Commercial and industrial loans 2,416,652 2,568,621 2,636,368 2,746,351 2,837,830 Consumer loans 1,560 1,544 1,368 1,137 832 Total loans 7,296,895 7,542,865 7,679,415 7,936,215 8,083,756 Premiums, discounts and deferred fees and expenses 5,520 5,458 5,165 5,178 5,107 Total $ 7,302,415$ 7,548,323$ 7,684,580$ 7,941,393$ 8,088,863 Loans held for sale $ 489,770$ 503,959$ 1,389,593$ 1,376,491$ 1,905,912 Deposits: Demand deposits: Noninterest-bearing $ 1,456,375$ 1,467,203$ 2,037,299$ 1,956,628$ 2,136,442 Interest-bearing 1,713,408 1,672,287 1,900,022 1,995,397 1,999,229 Money market and savings 3,835,628 3,604,909 3,612,753 3,524,801 3,543,668 Certificates of deposit 2,287,660 1,849,294 2,011,571 2,393,453 2,625,265 Total $ 9,293,071$ 8,593,693$ 9,561,645$ 9,870,279$ 10,304,604
Page 21
FIRST FOUNDATION INC. THIRD QUARTER 2025 RESULTS Page 15 of 20 CONSOLIDATED LOAN FUNDING AND YIELDS (unaudited) For the Quarter Ended For the Nine Months Ended September 30, June 30, September 30, September 30, (in thousands, except percentages)2025 2025 2024 2025 2024 Loan Funding Balances: Loans secured by real estate: Residential properties: Multifamily $ 27,991 $ 46,996 $ 23,740 $ 106,828 $ 111,397 Single family 19,177 2,275 5,511 25,025 13,202 Subtotal 47,168 49,271 29,251 131,853 124,599 Commercial properties: Non-owner occupied CRE - - 7 444 256 Owner-occupied CRE - 1 1,695 1 2,360 Subtotal - 1 1,702 445 2,616 Land and construction 2,128 856 3,644 6,528 23,216 Total real estate loans 49,296 50,128 34,597 138,826 150,431 Commercial and industrial loans 214,880 204,913 331,485 559,549 1,032,188 Consumer loans 392 1,151 231 1,998 1,168 Total $ 264,568 $ 256,192 $ 366,313 $ 700,373 $ 1,183,787 Loan Funding Yields: Loans secured by real estate: Residential properties: Multifamily 6.16% 6.24% 6.53% 6.25% 6.45% Single family 6.24% 7.99% 7.75% 6.45% 8.19% Subtotal 6.19% 6.32% 6.76% 6.29% 6.63% Commercial properties: Non-owner occupied CRE 0.00% 0.00% 8.50% 5.00% 5.36% Owner-occupied CRE 0.00% 4.63% 7.94% 4.63% 8.14% Subtotal 0.00% 4.63% 7.94% 5.00% 7.87% Land and construction 8.69% 8.71% 9.15% 8.72% 8.51% Total real estate loans 6.30% 6.37% 7.07% 6.40% 6.94% Commercial and industrial loans 7.15% 7.38% 8.35% 7.26% 8.44% Consumer loans 7.10% 7.45% 8.35% 7.39% 8.74% Total 7.00% 7.18% 8.23% 7.09% 8.25%
Page 22
FIRST FOUNDATION INC. THIRD QUARTER 2025 RESULTS CONSOLIDATED AVERAGE BALANCE SHEET, INTEREST, YIELD AND RATES (unaudited) For the Quarter Ended For the Nine Months Ended September 30, June 30, September 30, September 30, (in thousands,exceptpercentages) 2025 2025 2024 2025 2024 Average Balances: Cash, FHLB stock, and fed funds $ 1,471,792 $ 1,101,976 $ 1,127,688$ 1,264,637 $ 1,012,308 Securities AFS 1,609,301 1,507,718 1,278,765 1,461,554 1,160,394 Securities HTM 651,479 673,390 741,873 674,411 762,126 Loans, including LHFS 7,855,183 8,632,593 10,055,865 8,534,357 10,084,178 Total interest- earnings assets 11,587,755 11,915,677 13,204,191 11,934,959 13,019,006 Deposits: interest- bearing 7,700,686 7,307,404 8,269,517 7,585,528 8,568,561 Deposits: noninterest- bearing 1,482,278 1,850,748 2,124,562 1,784,632 1,903,046 Borrowings 1,436,549 1,739,483 1,691,936 1,552,730 1,541,682 Subordinated debt 173,495 173,480 173,435 173,480 173,419 Total interest- bearing liabilities 9,310,730 9,220,367 10,131,888 9,311,738 10,283,662 Average Yield / Rate: Cash, FHLB stock, and fed funds 4.51% 4.85% 5.47% 4.67% 5.33% Securities AFS 5.22% 5.20% 5.38% 5.23% 5.31% Securities HTM 2.42% 2.41% 2.25% 2.44% 2.26% Loans, including LHFS 4.72% 4.65% 4.77% 4.69% 4.75% Total interest- earnings assets 4.64% 4.61% 4.75% 4.63% 4.70% Deposits (interest- bearing only) 3.71% 3.70% 4.29% 3.75% 4.29% Deposits (noninterest and interest- bearing) 3.11% 2.95% 3.41% 3.03% 3.51% Borrowings 4.07% 4.16% 4.04% 4.11% 4.08% Subordinated debt 4.51% 3.94% 3.94% 4.14% 3.95% Total interest- bearing liabilities 3.78% 3.79% 4.24% 3.81% 4.25% Net Interest Rate Spread 0.86% 0.82% 0.51% 0.82% 0.45% Net Interest Margin 1.60% 1.68% 1.50% 1.65% 1.34%
Page 23
Page 16 of 20
Page 24
FIRST FOUNDATION INC. THIRD QUARTER 2025 RESULTS Page 17 of 20 Use of Non-GAAP Financial Measures To supplement our unaudited condensed consolidated financial statements presented in accordance with GAAP, we use certain non-GAAP measures of financial performance including, but not limited to, adjusted return on average assets, efficiency ratio, adjusted net income (loss) attributable to common shareholders, adjusted earnings (loss) per common share, and tangible book value per share. These supplemental non-GAAP financial measures may vary from, and may not be comparable to, similarly titled measures of other companies in our industry. Non-GAAP financial measures are not in accordance with, or an alternative for, GAAP financial measures. Generally, a non-GAAP financial measure is a numerical measure of a company’s performance that either excludes or includes amounts that are not normally excluded or included in the most directly comparable measure calculated and presented in accordance with GAAP. A non-GAAP financial measure may also be a financial metric that is not required by GAAP or other applicable requirement. We believe that these non-GAAP financial measures, when taken together with the corresponding GAAP financial measures (as applicable), provide meaningful supplemental information regarding our performance by providing additional information used by management that is not otherwise required by GAAP or other applicable requirements. Our management uses, and believes that investors may benefit from referring to, these non-GAAP financial measures in assessing our operating results and when planning, forecasting and analyzing future periods. These non-GAAP financial measures also facilitate a comparison of our performance to prior periods. We believe these non-GAAP measures are frequently used by securities analysts, investors and other interested parties in the evaluation of companies in our industry. However, these non-GAAP financial measures should be considered in addition to, not as a substitute for or superior to, net income (loss) or other financial measures prepared in accordance with GAAP. In the information below, we have provided a reconciliation of, where applicable, the most comparable GAAP financial measures to the non-GAAP financial measures used in this report, or a reconciliation of the non-GAAP calculation of the financial measure.
Page 25
FIRST FOUNDATION INC. THIRD QUARTER 2025 RESULTS NON-GAAP RETURN ON AVERAGE TANGIBLE COMMON EQUITY; ADJUSTED RETURN ON AVERAGE ASSETS; AND ADJUSTED NET INCOME (LOSS) ATTRIBUTABLE TO COMMON SHAREHOLDERS (unaudited) Return on average tangible common equity was calculated by excluding average intangible assets from the average common equity during the associated periods. Adjusted return on average assets represents adjusted net income (loss) attributable to common shareholders divided by average total assets. Adjusted net income (loss) attributable to common shareholders includes various adjustments to net income (loss), and any associated tax effect of those adjustments during the associated periods. The table below provides a reconciliation of the GAAP measure of return on average common equity to the non-GAAP measure of return on average tangible common equity. The table below also provides a reconciliation of the GAAP measure of net income (loss) to the non-GAAP measure of adjusted net income (loss) attributable to common shareholders. The table below also provides a reconciliation of the GAAP measure of return on average assets to the non-GAAP measure of adjusted return on average assets: For the Quarter Ended For the Nine Months Ended September 30, June 30, September 30, September 30, (in thousands, exceptpercentages) 2025 2025 2024 2025 2024 Average shareholders' equity$ 1,052,891 $ 1,047,438 $ 1,090,909 $ 1,051,768 $ 980,049 Less: Average preferred stock 87,538 87,649 120,666 87,612 40,516 Average common equity 965,353 959,789 970,243 964,156 939,533 Less: Average intangible assets 2,763 3,043 3,999 3,052 4,346 Average tangible common equity $ 962,590 $ 956,746 $ 966,244 $ 961,104 $ 935,187 Average assets $ 11,935,171$ 12,248,600$ 13,475,165$ 12,257,303$ 13,298,499 Net loss $ (146,323)$ (7,690)$ (82,174)$ (147,117) $ (78,296) Adjustments: Plus: LHFS LOCOM adjustment — — 117,517 — 117,517 Plus: Amortization of intangible assets expense 275 299 334 886 1,060 Total Adjustments 275 299 117,851 886 118,577 Less: Tax impact of adjustments above (77) (84) (32,998) (248) (33,202) Total after-tax adjustments to net income 198 215 84,853 638 85,375 Adjusted net (loss) income attributable to common shareholders(5) $ (146,125)$ (7,475)$ 2,679 $ (146,479)$ 7,079 Tax rate utilized for calculating tax effect on adjustments to net (loss) income 28.0% 28.0% 28.0% 28.0% 28.0% Return on average common equity(1) (60.6)% (3.2)% (33.9)% (20.3)% (11.1)% Return on average tangible common equity(2) (5) (60.7)% (3.1)% 1.1% (20.3)% 1.0% Return on average assets (3) (4.90)% (0.25)% (2.44)% (1.60)% (0.79)% Adjusted return on average assets (4) (5) (4.90)% (0.24)% 0.08% (1.59)% 0.07% (1) Annualized net (loss) income divided by average common equity. (2) Annualized adjusted net (loss) income attributable to common shareholders divided by average tangible common equity. (3) Annualized net (loss) income divided by average assets. (4) Annualized adjusted net (loss) income divided by average assets. (5) Non-GAAP measure.
Page 26
Page 18 of 20
Page 27
FIRST FOUNDATION INC. THIRD QUARTER 2025 RESULTS Page 19 of 20 NON-GAAP EFFICIENCY RATIO (unaudited) Efficiency ratio is a non-GAAP financial measurement determined by methods other than in accordance with U.S. GAAP. This figure represents the ratio of adjusted noninterest expense to adjusted revenue. The table below provides a calculation of the non-GAAP measure of efficiency ratio: For the Quarter Ended For the Nine Months Ended September 30, June 30, September 30, September 30, (in thousands, exceptpercentages) 2025 2025 2024 2025 2024 Total noninterest expense $ 57,482 $ 59,924 $ 60,225 $ 179,128 $ 166,463 Less: Amortization ofintangible assetsexpense (275) (299) (334) (886) (1,060) Adjusted Noninterestexpense $ 57,207 $ 59,625 $ 59,891 $ 178,242 $ 165,403 Net interest income $ 46,078 $ 50,082 $ 49,119 $ 147,959 $ 131,334 Plus: Total noninterestincome 17,519 1,338 (105,580) 38,460 (79,239) Plus: LHFS LOCOMadjustment - - 117,517 - 117,517 Total Revenue $ 63,597 $ 51,420 $ 61,056 $ 186,419 $ 169,612 Efficiency Ratio(1) 90.0% 116.0% 98.1% 95.6% 97.5% (1) Non-GAAP measure
Page 28
FIRST FOUNDATION INC. THIRD QUARTER 2025 RESULTS Page 20 of 20 NON-GAAP TANGIBLE COMMON EQUITY, TANGIBLE COMMON EQUITY RATIO, TANGIBLE BOOK VALUE PER COMMON SHARE, AND ADJUSTED EARNINGS (LOSS) PER SHARE (BASIC AND DILUTED) (unaudited) Tangible shareholders’ equity, tangible common equity to tangible assets ratio, tangible common equity, tangible book value per common share, tangible book value per common share (adjusted), and adjusted earnings (loss) per share (basic and diluted) are non-GAAP financial measurements determined by methods other than in accordance with U.S. GAAP. Tangible common equity is calculated by taking shareholders’ equity and subtracting preferred stock and intangible assets. Tangible common equity to tangible assets ratio is calculated by taking tangible common equity and dividing by tangible assets which is total assets excluding the balance of intangible assets. Tangible book value per common share is calculated by dividing tangible common equity by basic common shares outstanding, as compared to book value per share, which is calculated by dividing shareholders’ equity by basic common shares outstanding. Adjusted earnings (loss) per share (basic and diluted) is calculated by dividing adjusted net income (loss) attributable to common shareholders by average common shares outstanding (basic and diluted). The reconciliation of GAAP net income (loss) to adjusted net income (loss) attributable to common shareholders is presented on page 18 in “Non-GAAP Return on Average Tangible Common Equity; Adjusted Return on Average Assets and Adjusted Net Income (loss) Attributable to Common Shareholders.” The table below provides a reconciliation of the GAAP measure of shareholders’ equity to tangible shareholders’ equity and tangible common equity. The table below also provides a reconciliation of the GAAP measure of equity to asset ratio to the non-GAAP measure of tangible common equity to tangible assets ratio. The table below also provides a reconciliation of GAAP measure of book value per common share to the non-GAAP measure of tangible book value per common share. The table below also provides a reconciliation of the GAAP measure of net income (loss) per share (basic and diluted) to the non-GAAP measure of adjusted earnings (loss) per share (basic and diluted): For the Quarter Ended September 30, June 30, September 30, (in thousands, except per share amounts) 2025 2025 2024 Shareholders' equity $ 917,911 $ 1,050,626 $ 1,069,797 Less: Preferred stock 86,797 87,649 130,252 Total common equity 831,114 962,976 939,545 Less: Intangible assets 2,672 2,947 3,888 Tangible common equity $ 828,442 $ 960,030 $ 935,657 Total assets $ 11,910,044 $ 11,588,362 $ 13,376,561 Less: Intangible assets 2,672 2,947 3,888 Tangible assets(1) $ 11,907,372 $ 11,585,415 $ 13,372,673 Equity to asset ratio 7.71% 9.07% 8.00%Tangible common equity to tangible assets ratio(1) 6.96% 8.29% 7.00% Book value per common share $ 11.10 $ 12.75 $ 15.77Tangible book value per common share(1) $ 10.02 $ 11.65 $ 13.79Basic common shares outstanding 82,679,097 82,386,071 67,855,084Additional common shares issued in July 2024 CapitalRaiseand upon conversion of preferred shares: Common shares underlying the Series A preferred shares 29,521,000 29,811,000 29,811,000 Common shares underlying the Series B preferred shares — — 14,490,000Basic common shares outstanding upon conversion(adjusted) 112,200,097 112,197,071 112,156,084 Book value per common share (adjusted) (1) $ 8.18 9.36 9.54Tangible book value per common share (adjusted) (1) $ 8.16 9.34 9.50 Adjusted net income (loss) attributable to commonshareholders(1) $ (146,125) $ (7,475) $ 2,679 Weighted average basic common shares outstanding 82,424,884 82,386,071 66,992,701Diluted common shares outstanding 82,424,884 82,386,071 66,992,701Net loss per share (basic) ($ 1.78) ($ 0.09) ($ 1.23)Net loss per share (diluted) ($ 1.78) ($ 0.09) ($ 1.23)Adjusted (loss) earnings per share (basic)(1) ($ 1.77) ($ 0.09) $ 0.04Adjusted (loss) earnings per share (diluted)(1) ($ 1.77) ($ 0.09) $ 0.04 (1) Non-GAAP financial measure