First Foundation (FFWM) AI Stock Analysis

• Market Cap: $486.90M
• Dividend Yield: 0.2%
• Average Volume (3M): 820.98K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.14
• Revenue Growth: -1.29%
• EPS Growth: -1023.82%
• Country: US
• Employees: 561
• Sector: Financial
• Sector Strength: 73
• Industry: Banks - Regional
• EPS (TTM): -0.09
• Shares Outstanding: 82,386,070
• 10 Day Avg. Volume: 554,367
• 30 Day Avg. Volume: 820,980
• 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: 2.66
• Enterprise Value/Revenue: 2.86
• Enterprise Value/Gross Profit: 32.75
• Enterprise Value/Ebitda: -9.34
• 1Y Price Target: $5.75
• Price Target Upside: -2.71% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 3

• Rating: 51 Neutral
• Price Target: $6.00 ▲(1.52% Upside)

First Foundation's overall stock score reflects significant financial challenges, with declining revenue and profitability being the most impactful factors. While technical indicators show some positive momentum, valuation concerns and recent losses weigh heavily on the score. Strategic initiatives to reduce CRE exposure and grow digital banking deposits are positive, but rising costs and management turnover remain concerns.

Positive Factors

Digital Banking Growth

The growth in digital banking deposits indicates a successful adaptation to digital trends, enhancing customer engagement and future revenue streams.

Reduction in CRE Concentration

Reducing CRE concentration mitigates risk and enhances financial stability, positioning the company for more sustainable growth.

Leadership Appointment

The appointment of an experienced Chief Banking Officer is expected to drive strategic growth and enhance service offerings, strengthening market position.

Negative Factors

Declining Revenue and Profitability

Declining revenue and profitability highlight operational challenges, potentially impacting long-term financial health and investment capacity.

Rising Debt Levels

Increased leverage poses financial risk, limiting flexibility and potentially increasing vulnerability to economic fluctuations.

Management Turnover

Frequent management changes can disrupt strategic continuity and operational efficiency, affecting long-term business execution.

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 several key streams. Primarily, the company earns money from mortgage origination fees and interest income from the loans it provides. Additionally, FFWM generates revenue from wealth management services, which includes fees for investment advisory, asset management, and financial planning. Commercial banking services, such as business loans and deposit accounts, also contribute to the company's earnings. Significant partnerships with real estate agents, financial advisors, and other financial institutions further enhance its revenue potential by expanding its client base and increasing transaction volumes.

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	-138.68M	-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	96.47M	93.73M	64.58M
Operating Cash Flow	-23.68M	-8.78M	7.92M	101.05M	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: 5.91
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

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 5.91 is above the 20-day moving average (MA) of 5.76, above the 50-day MA of 5.43, and above the 200-day MA of 5.56, indicating a bullish trend. The MACD of 0.19 indicates Negative momentum. The RSI at 60.22 is Neutral, neither overbought nor oversold. The STOCH value of 32.54 is Neutral, 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	77 Outperform	$483.86M	16.02	7.72%	3.91%	8.36%	-2.24%
FBIZ	76 Outperform	$434.98M	9.30	14.31%	2.16%	8.45%	21.74%
HBCP	76 Outperform	$436.78M	10.70	10.55%	1.93%	8.03%	15.18%
BWB	74 Outperform	$452.50M	13.57	8.31%	―	12.19%	12.88%
COFS	70 Outperform	$461.11M	24.76	4.37%	3.65%	38.01%	-58.08%
Sector *	68 Neutral	$17.85B	11.54	9.95%	3.76%	9.70%	1.08%
FFWM	51 Neutral	$486.90M	―	-9.79%	0.20%	-1.29%	-1023.82%

First Foundation Corporate Events

First Foundation Appoints Stuart Bernstein as Chief Banking Officer

On August 11, 2025, First Foundation Inc. announced the appointment of Stuart Bernstein as Chief Banking Officer of First Foundation Bank, effective immediately. Bernstein, with over 25 years of experience in banking and wealth management, previously held leadership roles at Santander Bank and MUFG Union Bank. His appointment is expected to drive the next phase of First Foundation’s banking evolution, enhancing consumer services, business banking, and private client strategy.

First Foundation Sells $858M in Real Estate Loans

In the second quarter of 2025, First Foundation Inc. executed a strategic transformation by selling $858 million in commercial real estate loans, which was part of a broader strategy initiated in the third quarter of 2024. This move resulted in one-time charges but allowed the company to pay down high-cost deposits, leading to an expected pre-provision net revenue benefit in the third quarter. Despite a net loss in the second quarter, the company was profitable when adjusting for these transactions, indicating positive momentum in its financial restructuring efforts.

First Foundation Announces Leadership Change in Risk Management

On July 21, 2025, First Foundation Bank announced the resignation of Hugo Nuno, its Chief Banking Officer and Chief Risk Officer, effective August 1, 2025. Simone Lagomarsino, currently serving as President, will assume the role of Chief Risk Officer starting July 25, 2025. This leadership change does not involve any special arrangements or family ties, and Ms. Lagomarsino’s compensation remains unchanged. Her previous investment in the company aligns with other investors’ terms, indicating confidence in the firm’s direction.

First Foundation COO Christopher Naghibi Resigns

On June 23, 2025, Christopher Naghibi announced his resignation from First Foundation Inc., effective July 8, 2025. He currently holds the position of Executive Vice President and Chief Operating Officer at First Foundation Bank, the company’s wholly-owned subsidiary, indicating a significant change in the bank’s leadership structure.