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First Foundation Inc (FFWM)
:FFWM
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First Foundation
(NYSE:FFWM)
44Neutral
First Foundation (FFWM) vs. S&P 500 (SPY)
Market Cap
$427.48M
Dividend Yield1.01%
Average Volume (3M)560.79K
Price to Earnings (P/E)―
Beta (1Y)1.94
Revenue Growth6.75%
EPS Growth62.30%
CountryUS
Employees551
SectorFinancial
Sector Strength82
IndustryBanks - Regional
Share Statistics
EPS (TTM)-1.33
Shares Outstanding82,365,390
10 Day Avg. Volume581,537
30 Day Avg. Volume560,790
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)4.14
Price to Cash Flow (P/CF)-4.70
P/FCF Ratio2.10
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$7.50Price Target Upside44.51% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
First Foundation Business Overview & Revenue Model
Company DescriptionFirst Foundation Inc. (FFWM) is a financial services company that operates primarily in the banking and wealth management sectors. The company provides a wide range of services, including personal and business banking, trust services, investment management, and financial advisory services. With a focus on delivering personalized solutions, First Foundation aims to cater to the diverse financial needs of its clientele, which includes individuals, families, and businesses.
How the Company Makes MoneyFirst Foundation Inc. makes money through a combination of interest income, fees, and service charges. Its banking operations generate revenue from interest earned on loans and advances given to customers, while simultaneously managing the cost of deposits from which these funds are sourced. The company also earns non-interest income through its wealth management and advisory services, which include fees from investment management, financial planning, and trust services. Additionally, First Foundation benefits from partnerships with other financial institutions to enhance its service offerings and generate additional fee-based income. The company's diversified revenue streams help it manage risk and sustain profitability across various economic cycles.
First Foundation Financial Statement Overview
Summary
First Foundation faces profitability and cash flow challenges despite maintaining a stable equity base. While the balance sheet shows improvement in debt management, negative trends in income and cash flow statements highlight the need for strategic interventions to boost revenue and manage expenses effectively.Income Statement
The company's income statement shows a mixed performance with declining total revenue from $328.7 million in 2022 to $174.9 million in 2023, and a further decline to $610.9 million in 2024. Net income has been negative in the last two years, indicating profitability challenges. Gross profit margins remained stable, but negative EBIT and EBITDA in 2023 further highlight operational challenges.40
Negative
Balance Sheet
First Foundation's balance sheet reflects a stable equity base with stockholders' equity of $1.05 billion in 2024. The company has managed to reduce total debt to zero in 2024, improving its debt-to-equity ratio substantially. However, total assets have slightly decreased over the years, and the equity ratio remains moderate, indicating room for improved asset management.55
Neutral
Cash Flow
Cash flow analysis reveals significant challenges, with operating cash flow turning negative in 2024 at -$8.78 million. Free cash flow also declined to -$8.78 million, indicating liquidity and cash management issues. The company needs to address these cash flow deficits to ensure financial stability.30
Negative
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 611.00M | 174.85M | 328.75M | 294.96M | 243.85M | Gross Profit |
| 611.00M | 573.69M | 328.75M | 294.96M | 243.85M | EBIT |
| 593.00M | -191.87M | 226.28M | 151.78M | 118.77M | EBITDA |
| 0.00 | -191.87M | 158.51M | 158.63M | 125.40M | Net Income Common Stockholders |
| -92.41M | -199.06M | 110.51M | 109.51M | 84.37M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 2.33B | 2.04B | 882.65M | 2.31B | 1.44B | Total Assets |
| 12.65B | 13.33B | 13.01B | 10.20B | 6.96B | Total Debt |
| 1.60B | 1.58B | 1.37B | 210.13M | 269.00M | Net Debt |
| 582.70M | 255.82M | 713.44M | -911.63M | -360.71M | Total Liabilities |
| 11.59B | 12.40B | 11.88B | 9.13B | 6.26B | Stockholders Equity |
| 1.05B | 925.34M | 1.13B | 1.06B | 695.71M |
| Cash Flow | Free Cash Flow | |||
| -8.78M | -2.39M | 96.47M | 93.73M | 64.58M | Operating Cash Flow |
| -8.78M | 5.82M | 101.05M | 96.94M | 67.44M | Investing Cash Flow |
| 287.36M | 134.88M | -3.25B | -79.37M | -24.90M | Financing Cash Flow |
| -589.08M | 529.44M | 2.68B | 474.49M | 521.77M |
First Foundation Technical Analysis
Neutral
5.19
Price Trends
5.23
Negative
6.14
Negative
6.31
Negative
Market Momentum
-0.06
Negative
57.68
Neutral
73.53
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FFWM, the sentiment is Neutral. The current price of 5.19 is above the 20-day moving average (MA) of 4.85, below the 50-day MA of 5.23, and below the 200-day MA of 6.31, indicating a neutral trend. The MACD of -0.06 indicates Negative momentum. The RSI at 57.68 is Neutral, neither overbought nor oversold. The STOCH value of 73.53 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for FFWM.
First Foundation Risk Analysis
First Foundation disclosed 46 risk factors in its most recent earnings report. First Foundation reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
First Foundation Peers Comparison
Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
75 Outperform | $395.47M | 9.17 | 13.98% | 2.18% | 15.98% | 19.35% | |
74 Outperform | $413.24M | 15.69 | 12.73% | 1.44% | 15.35% | -1.43% | |
74 Outperform | $415.28M | 10.16 | 14.88% | 1.26% | 8.29% | 6.28% | |
66 Neutral | $394.21M | 10.02 | 11.67% | 3.40% | 5.69% | 19.91% | |
63 Neutral | $14.20B | 10.11 | 9.01% | 4.34% | 16.34% | -11.27% | |
50 Neutral | $404.91M | ― | -8.79% | 7.02% | 11.26% | -498.90% | |
44 Neutral | $427.48M | ― | -9.34% | 1.01% | 6.75% | 62.30% |
* Financial Sector Average
Performance Comparison
FFWM
First Foundation
5.19
-2.01
-27.92%
FBIZ
First Business Financial
47.15
11.92
33.83%
GCBC
Greene County Bancorp
24.11
-2.33
-8.81%
KRNY
Kearny Financial
6.26
0.38
6.46%
BSRR
Sierra Bancorp
27.88
9.21
49.33%
UNTY
Unity Bancorp
40.70
13.41
49.14%
First Foundation Earnings Call Summary
Earnings Call Date: Jan 30, 2025 | % Change Since: -17.09% | Next Earnings Date: Apr 29, 2025
Earnings Call Sentiment Neutral
The earnings call presented a mixed picture. On the positive side, there was successful execution of a multifamily loan securitization and an improvement in net interest margin. Additionally, the wealth and trust business remained stable. However, the company faced challenges with increased provisions for credit losses, higher non-interest expenses, and the first loss in the multifamily portfolio. While there are clear areas of progress, the significant challenges offset the positive developments.Highlights
Successful Multifamily Loan Securitization
Executed a $489 million multifamily loan securitization in early December, achieving a price above 95, which was a premium compared to the portfolio's marks at the end of both the third and fourth quarters.
Net Interest Margin Improvement
Net interest margin increased from 1.5% in the third quarter to 1.58% in the fourth quarter, marking a 41 basis point improvement from the year's low point in the first quarter.
Wealth and Trust Business Stability
Continued success of the wealth and trust business, which remained stable sources of fee income during the fourth quarter.
Reduction in Interest Bearing Liability Costs
Interest bearing liability costs decreased to 4.05%, benefiting from the Fed's rate cuts, which was 19 basis points below the third quarter's 4.24%.
Lowlights
Increased Provision for Credit Losses
Provision for credit losses increased significantly due to $17.1 million in net charge-offs, primarily from three longstanding commercial relationships.
Higher Non-Interest Expenses
Non-interest expenses increased by $7.9 million, primarily driven by compensation and benefits expenses and year-end awards for non-executive officer team members.
Decline in Loan Interest Income
A reduction in loan balances contributed to lower loan interest income for the quarter.
First Loss in Multifamily Portfolio
Recorded the first loss in the history of the multifamily portfolio, amounting to $657,000, due to a property in the San Francisco market.
Company Guidance
During the Fourth Quarter 2024 Earnings Conference Call, First Foundation's CEO, Thomas C. Shafer, and CFO, Jamie Britton, provided several key metrics and insights into the company's performance and strategic initiatives. The company successfully executed a $489 million multifamily loan securitization in December, selling loans above 95% of face value, contributing to a modest improvement in net interest margin, which increased from 1.5% in Q3 to 1.58% in Q4. Proceeds from these sales were used to pay down high-cost broker deposits, with plans to further reduce the $1.4 billion in multifamily loans held for sale on the balance sheet. The allowance for credit losses (ACL) increased to 41 basis points, up from 36 basis points in the prior quarter, reflecting a $17.1 million in net charge-offs, primarily from three longstanding commercial relationships. Moreover, the company noted a 19 basis point decline in interest-bearing liability costs to 4.05%, which contributed positively to net interest income, despite a decrease in overall loan yields from 4.75% in Q3 to 4.68% in Q4. Looking ahead, First Foundation is focused on diversifying its loan portfolio, reducing commercial real estate concentration, and expanding its wealth and trust business as stable sources of fee income.First Foundation Corporate Events
Executive/Board Changes
First Foundation Finalizes Executive Employment Agreements
Neutral
Feb 13, 2025
First Foundation Inc. and its subsidiary, First Foundation Bank, have finalized employment agreements with their top executives, Thomas C. Shafer and Simone Lagomarsino. Mr. Shafer was appointed CEO on November 21, 2024, and will earn an annual base salary of $1,090,000 with additional incentives, while Ms. Lagomarsino, appointed as President in 2024, will receive $800,000 annually. Both agreements include provisions for termination without cause and participation in executive benefit programs.
Business Operations and StrategyFinancial Disclosures
First Foundation Reports Strategic Plan Amid Financial Challenges
Negative
Jan 30, 2025
First Foundation Inc. released a slide presentation for its upcoming investor meetings, highlighting its strategic plan and financial performance for the fourth quarter of 2024. The company reported a challenging financial quarter, with an adjusted net loss and a decrease in tangible book value per share due to capital conversion. Notable activities included the sale of multifamily loans and efforts to strengthen capital and core funding, reflecting a focus on long-term sustainability and performance improvement.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.