First Foundation (FFWM) AI Stock Analysis

• Market Cap: $475.76M
• Dividend Yield: N/A
• Average Volume (3M): 662.19K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.72
• Revenue Growth: -6.47%
• EPS Growth: -75.82%
• Country: US
• Employees: 561
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Regional
• EPS (TTM): -1.77
• Shares Outstanding: 82,884,400
• 10 Day Avg. Volume: 774,924
• 30 Day Avg. Volume: 662,190
• PEG Ratio: 0.07
• Price to Book (P/B): 0.39
• Price to Sales (P/S): 0.85
• P/FCF Ratio: -35.39
• Enterprise Value/Market Cap: 2.72
• Enterprise Value/Revenue: 2.86
• Enterprise Value/Gross Profit: 32.75
• Enterprise Value/Ebitda: -9.61
• 1Y Price Target: $6.38
• Price Target Upside: 5.63% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 48 Neutral
• Price Target: $5.50 ▼(-8.94% Downside)

First Foundation's overall stock score is primarily impacted by its poor financial performance, with significant challenges in revenue, profitability, and leverage. While technical indicators show some bullish momentum, the valuation remains unattractive due to negative earnings. The recent executive appointments are a positive step but do not significantly offset the financial challenges.

Positive Factors

Merger with FirstSun Capital

The merger with FirstSun Capital is expected to create a stronger regional bank with $17B in assets, enhancing market position and service offerings.

Executive Appointments

New leadership in credit strategy and operations is likely to improve risk management and support disciplined growth, strengthening the company's operational framework.

Free Cash Flow Growth

Positive free cash flow growth indicates improving liquidity and financial flexibility, which can support future investments and debt management.

Negative Factors

Declining Revenue

Declining revenue growth reflects operational challenges and could hinder the company's ability to invest in growth initiatives and maintain competitive positioning.

Rising Debt Levels

Increased leverage poses a risk to financial stability, potentially limiting the company's ability to navigate economic downturns and invest in growth.

Negative Profitability

Negative profitability indicates operational inefficiencies and financial strain, which may impact the company's ability to sustain long-term growth and shareholder value.

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 generates revenue through multiple key streams, primarily from interest income on loans, fees for investment management services, and commissions from financial planning and consulting. The company's commercial and residential lending operations contribute significantly to its earnings, as it charges interest on loans provided to clients. Additionally, FFWM earns fees from managing client investments and providing trust services, which are typically structured as a percentage of assets under management. Strategic partnerships with financial institutions and service providers also enhance its revenue potential, enabling the company to expand its service offerings and reach a broader client base.

First Foundation Financial Statement Overview

Summary

First Foundation is facing significant financial challenges, with declining revenue, profitability, and increasing leverage. The income statement reflects operational difficulties, while the balance sheet shows rising debt levels. Cash flow metrics indicate liquidity issues, although there is some improvement in free cash flow growth. The company needs to address these challenges to stabilize its financial position.

Income Statement

First Foundation's income statement shows a concerning trend with declining revenue and profitability. The TTM data indicates a negative revenue growth rate of -4.84% and a net profit margin of -21.46%, reflecting significant losses. The EBIT and EBITDA margins are also negative, indicating operational challenges. Historically, the company had strong gross profit margins, but recent performance has deteriorated.

Balance Sheet

The balance sheet reveals a high debt-to-equity ratio of 1.75 in the TTM period, indicating increased leverage and potential financial risk. Return on equity is negative, reflecting the company's inability to generate profits from shareholders' equity. Although the equity ratio remains stable, the increasing debt levels pose a risk to financial stability.

Cash Flow

Cash flow analysis shows a mixed picture. The TTM free cash flow growth rate is positive at 36.61%, but the operating cash flow and free cash flow to net income ratios are negative, indicating cash flow challenges. Historically, the company maintained positive cash flow metrics, but recent performance highlights liquidity concerns.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	452.44M	481.54M	546.24M	413.93M	308.90M	291.09M
Gross Profit	39.55M	32.49M	175.33M	328.21M	291.10M	237.10M
EBITDA	-134.69M	-129.41M	-191.87M	158.51M	158.63M	125.40M
Net Income	-97.08M	-92.41M	-199.06M	110.51M	109.51M	84.37M
Balance Sheet
Total Assets	11.59B	12.65B	13.33B	13.01B	10.20B	6.96B
Cash, Cash Equivalents and Short-Term Investments	2.52B	2.33B	2.03B	882.65M	2.31B	1.44B
Total Debt	1.84B	1.60B	1.58B	1.37B	210.13M	269.00M
Total Liabilities	10.54B	11.59B	12.40B	11.88B	9.13B	6.26B
Stockholders Equity	1.05B	1.05B	925.34M	1.13B	1.06B	695.71M
Cash Flow
Free Cash Flow	-27.26M	-11.51M	-287.00K	96.91M	93.73M	64.58M
Operating Cash Flow	-23.68M	-8.78M	7.92M	101.49M	96.94M	67.44M
Investing Cash Flow	1.65B	287.36M	132.78M	-3.25B	-79.37M	-24.90M
Financing Cash Flow	-2.00B	-589.08M	529.44M	2.68B	474.49M	521.77M

First Foundation Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 6.04
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FFWM, the sentiment is Positive. The current price of 6.04 is above the 20-day moving average (MA) of 5.45, above the 50-day MA of 5.46, and above the 200-day MA of 5.31, indicating a bullish trend. The MACD of 0.18 indicates Negative momentum. The RSI at 68.06 is Neutral, neither overbought nor oversold. The STOCH value of 93.69 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for FFWM.

First Foundation Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
AROW	78 Outperform	$529.45M	15.48	8.49%	3.54%	6.86%	6.11%
FBIZ	76 Outperform	$424.95M	8.40	15.02%	2.03%	8.21%	29.65%
HBCP	75 Outperform	$416.54M	9.47	10.86%	1.89%	6.25%	24.92%
BWB	74 Outperform	$515.28M	14.27	8.63%	―	13.96%	25.74%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
COFS	67 Neutral	$433.48M	21.27	6.16%	3.53%	50.36%	-56.64%
FFWM	48 Neutral	$475.76M	-2.93	-16.22%	―	-6.47%	-75.82%

First Foundation Corporate Events

First Foundation Announces Merger with FirstSun Capital

On October 27, 2025, FirstSun Capital Bancorp and First Foundation Inc. entered into a merger agreement where First Foundation will merge into FirstSun, with FirstSun as the surviving entity. This merger, which includes the integration of their respective subsidiary banks, is expected to close in the second quarter of 2026, pending regulatory and stockholder approvals. The merger will result in First Foundation stockholders owning approximately 40.5% of the combined company. The agreement outlines the exchange of shares, conversion of stock awards, and treatment of warrants, along with governance changes and conditions for closing. Termination fees are applicable under certain circumstances, and support and lock-up agreements have been established to facilitate the merger process.

First Foundation Announces Merger with FirstSun Capital

On October 27, 2025, First Foundation Inc. and FirstSun Capital Bancorp announced a merger agreement where First Foundation will merge into FirstSun, with FirstSun as the surviving entity. Following this corporate merger, First Foundation Bank will merge into Sunflower Bank, with Sunflower Bank continuing as the surviving bank. The transaction is anticipated to close in early Q2 2026, pending regulatory and shareholder approvals. This merger is expected to impact the companies’ operations and industry positioning, with potential implications for stakeholders, including regulatory challenges and integration risks.

First Foundation Appoints New Executive Vice President

On October 20, 2025, First Foundation Bank appointed Parham Medhat as Executive Vice President, Chief Operations Officer. Mr. Medhat, with over 20 years of experience in operational transformation and technology integration in the banking sector, will lead the bank’s enterprise operations, technology, and delivery infrastructure. His appointment is expected to enhance the bank’s operational frameworks, ensuring scalability and alignment with strategic growth objectives. Additionally, Stuart Bernstein was appointed as Chief Banking Officer, effective August 11, 2025, with an employment agreement finalized on October 21, 2025. These leadership changes are poised to strengthen First Foundation’s operational backbone and support its growth and client service objectives.