First Foundation (FFWM) AI Stock Analysis

• Market Cap: $425.94M
• Dividend Yield: 0.19%
• Average Volume (3M): 841.34K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.24
• Revenue Growth: 3.61%
• EPS Growth: 65.61%
• Country: US
• Employees: 561
• Sector: Financial
• Sector Strength: 82
• Industry: Banks - Regional
• EPS (TTM): 0.09
• Shares Outstanding: 82,386,070
• 10 Day Avg. Volume: 595,429
• 30 Day Avg. Volume: 841,339
• PEG Ratio: 0.16
• Price to Book (P/B): 0.31
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -36.38
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $7.75
• Price Target Upside: 49.90% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 57 Neutral
• Price Target: $5.50 ▲( 6.38% Upside)

First Foundation's stock score reflects its return to profitability and strategic improvements in the latest earnings call. Financial performance remains a concern due to profitability and cash flow issues, while technical indicators are mixed. Valuation is challenging with a negative P/E ratio, though a high dividend yield offers some appeal.

First Foundation Business Overview & Revenue Model

Company Description

First Foundation Inc., through its subsidiaries, provides personal banking, business banking, and private wealth management services in the United States. It operates through two segments, Banking and Wealth Management. The company offers a range of bank deposit products, including personal and business checking accounts, savings accounts, interest-bearing negotiable order of withdrawal accounts, money market accounts, and time certificate of deposits; and loan products consisting of multifamily and single family residential real estate loans, commercial real estate loans, and commercial term loans and line of credits, as well as consumer loans, such as personal installment loans and line of credits, and home equity line of credits. It also provides various specialized services comprising trust services, internet and mobile banking, remote deposit capture services, merchant credit card services, ATM cards, Visa debit cards, and business sweep accounts, as well as insurance brokerage services and equipment financing solutions. In addition, the company offers investment management and financial planning services; treasury management services; advisory and coordination services in the areas of estate planning, retirement planning, and charitable and business ownership issues; and financial, investment, and economic advisory and related services. Further, it provides support services, including the processing and transmission of financial and economic data for charitable organizations. The company operates through a network of 28 branch offices and 3 loan production offices in California, Nevada, Texas, and Hawaii. First Foundation Inc. was founded in 1985 and is headquartered in Dallas, Texas.

How the Company Makes Money

First 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.

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.

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.

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

• Technical Analysis Sentiment: Negative
• Last Price: 5.17
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FFWM, the sentiment is Negative. The current price of 5.17 is below the 20-day moving average (MA) of 5.23, above the 50-day MA of 5.03, and below the 200-day MA of 6.11, indicating a neutral trend. The MACD of 0.06 indicates Positive momentum. The RSI at 49.77 is Neutral, neither overbought nor oversold. The STOCH value of 16.17 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for FFWM.

First Foundation Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
FBIZ	78 Outperform	$397.22M	8.68	14.36%	2.18%	12.02%	26.09%
UNTY	77 Outperform	$434.95M	10.17	15.17%	1.23%	6.99%	12.46%
GCBC	69 Neutral	$374.93M	13.14	13.33%	1.55%	14.44%	16.49%
Sector *	64 Neutral	$12.64B	9.78	7.67%	17015.08%	12.23%	-6.02%
BSRR	62 Neutral	$374.35M	9.57	11.58%	3.53%	1.99%	17.65%
FFWM	57 Neutral	$425.94M	―	-8.68%	0.19%	3.61%	65.61%
KRNY	50 Neutral	$387.48M	―	-8.86%	7.31%	7.93%	-570.64%

First Foundation Corporate Events

First Foundation Returns to Profitability in Q1 2025

First Foundation Inc. reported a return to profitability in the first quarter of 2025, driven by an increase in net interest margin and normalized credit costs. The company achieved a fully diluted EPS of $0.08, a significant improvement from the previous quarter’s loss. Key strategic initiatives include reducing commercial real estate concentration, improving deposit quality, and building organic capital. The company also reported strong credit performance with negligible net charge-offs and a stable provision for credit losses.