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First Foundation (FFWM)
NYSE:FFWM
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First Foundation
(NYSE:FFWM)
44Neutral
First Foundation (FFWM) vs. S&P 500 (SPY)
Market Cap
$377.23M
Dividend Yield1.09%
Average Volume (3M)592.40K
Price to Earnings (P/E)―
Beta (1Y)2.09
Revenue Growth6.27%
EPS Growth62.30%
CountryUS
Employees567
SectorFinancial
Sector Strength77
IndustryBanking
Share Statistics
EPS (TTM)-1.33
Shares Outstanding82,364,630
10 Day Avg. Volume623,795
30 Day Avg. Volume592,405
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)3.44
Price to Cash Flow (P/CF)6.60
P/FCF Ratio0.90
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 Upside63.40% 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 provides a comprehensive suite of banking, trust, and wealth management services. The company primarily operates in the financial sector, catering to the needs of individuals, businesses, and institutions. Its core services include personal banking, business banking, trust services, and investment management, all aimed at delivering personalized financial solutions.
How the Company Makes MoneyFirst Foundation Inc. generates revenue through various financial services. The company's primary revenue streams include interest income from loans and deposits, fees from wealth management and trust services, and service charges related to banking operations. Additionally, it earns money through investment advisory fees and commissions. First Foundation leverages partnerships with financial institutions and service providers to enhance its service offerings and expand its client base, contributing to its earnings. The company focuses on building long-term relationships with clients, which helps maintain a steady stream of recurring revenue from its diversified service portfolio.
First Foundation Financial Statement Overview
Summary
First Foundation's financial health reflects challenges with declining revenues, profitability, rising leverage, and negative cash flows. Despite these issues, historical profitability and recent equity growth suggest potential for recovery if operational inefficiencies are addressed.Income Statement
First Foundation's income statement reveals some challenges, primarily with a decline in net income, as the TTM data shows a negative net income of $75.7M. There is a significant drop in revenue growth from previous years, with TTM revenue at $677.6M, a reduction from 2022's $328.7M. The negative EBIT and EBITDA margins indicate operational inefficiencies in the current year. However, historical data shows that the company was profitable in earlier years, suggesting potential for recovery.45
Neutral
Balance Sheet
The balance sheet indicates a moderate debt-to-equity ratio with total debt at $1.86B against a stockholders' equity of $1.07B. The equity ratio is relatively stable, but the increase in liabilities over assets suggests rising leverage. Despite this, there has been growth in stockholders' equity from $925.3M in 2023 to $1.07B in TTM, indicating some improvement in equity position.55
Neutral
Cash Flow
The cash flow statement highlights concerns with negative operating cash flow of $22M in TTM and free cash flow of -$26.3M. This suggests issues with cash generation from operations. Historically, the company had positive free cash flow, but recent trends indicate a downturn. The cash flow from financing activities remains strong, which may provide liquidity support.40
Negative
| Breakdown | |||||
| TTM | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 | Dec 2019 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 677.58M | 174.85M | 328.75M | 294.96M | 243.85M | 193.87M | Gross Profit |
| 678.42M | 573.69M | 328.75M | 294.96M | 243.85M | 193.87M | EBIT |
| 144.18M | -191.87M | 226.28M | 151.78M | 118.77M | 79.50M | EBITDA |
| -116.19M | -191.87M | 158.51M | 158.63M | 125.40M | 86.10M | Net Income Common Stockholders |
| -75.75M | -199.06M | 110.51M | 109.51M | 84.37M | 56.24M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 876.88M | 2.04B | 882.65M | 2.31B | 1.44B | 1.08B | Total Assets |
| 5.84B | 13.33B | 13.01B | 10.20B | 6.96B | 6.31B | Total Debt |
| 708.00M | 1.58B | 1.37B | 210.13M | 269.00M | 743.00M | Net Debt |
| 640.69M | 255.82M | 713.44M | -911.63M | -360.71M | 677.61M | Total Liabilities |
| 5.28B | 12.40B | 11.88B | 9.13B | 6.26B | 5.70B | Stockholders Equity |
| 559.18M | 925.34M | 1.13B | 1.06B | 695.71M | 613.87M |
| Cash Flow | Free Cash Flow | ||||
| -26.29M | -2.39M | 96.47M | 93.73M | 64.58M | 58.21M | Operating Cash Flow |
| -22.02M | 5.82M | 101.05M | 96.94M | 67.44M | 60.44M | Investing Cash Flow |
| -102.03M | 134.88M | -3.25B | -79.37M | -24.90M | -427.04M | Financing Cash Flow |
| 412.28M | 529.44M | 2.68B | 474.49M | 521.77M | 364.68M |
First Foundation Technical Analysis
Negative
4.59
Price Trends
5.55
Negative
6.49
Negative
6.38
Negative
Market Momentum
-0.26
Positive
28.96
Positive
11.09
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 4.59 is below the 20-day moving average (MA) of 5.04, below the 50-day MA of 5.55, and below the 200-day MA of 6.38, indicating a bearish trend. The MACD of -0.26 indicates Positive momentum. The RSI at 28.96 is Positive, neither overbought nor oversold. The STOCH value of 11.09 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for FFWM.
First Foundation Risk Analysis
First Foundation disclosed 47 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 (64)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
72 Outperform | $1.52B | 9.48 | 10.44% | ― | -3.61% | -29.58% | |
68 Neutral | $2.68B | 19.81 | 9.73% | 4.08% | 4.63% | -16.29% | |
67 Neutral | $2.43B | 10.18 | 9.90% | 3.70% | 3.42% | 30.07% | |
64 Neutral | $13.80B | 10.64 | 9.23% | 4.22% | 17.66% | -7.66% | |
60 Neutral | $8.02B | 10.90 | 12.32% | 2.06% | 13.60% | 8.85% | |
44 Neutral | $377.23M | ― | -9.34% | 1.09% | 6.27% | 62.30% |
* Financial Sector Average
Performance Comparison
FFWM
First Foundation
4.59
-3.29
-41.75%
BOH
Bank Of Hawaii
67.34
8.46
14.37%
BKU
BankUnited
32.45
6.20
23.62%
WAL
Western Alliance
73.65
15.88
27.49%
CUBI
Customers Bancorp
48.20
-3.72
-7.16%
First Foundation Earnings Call Summary
Earnings Call Date: Jan 30, 2025 | % Change Since: -26.68% | 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
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.
Executive/Board Changes
First Foundation Announces CEO Transition and New Leadership
Neutral
Nov 22, 2024
First Foundation Inc. has announced the retirement of CEO Scott F. Kavanaugh after 17 years, with Thomas C. Shafer stepping in as the new CEO. Shafer brings over four decades of banking experience, including leadership roles at Huntington Bancshares and TCF Financial Corporation. His appointment is expected to guide First Foundation towards achieving strategic objectives, continuing the legacy of Kavanaugh’s impactful leadership.
Executive/Board ChangesBusiness Operations and Strategy
First Foundation Appoints C. Allen Parker to Board
Neutral
Nov 15, 2024
C. Allen Parker has been appointed to the Board of Directors of First Foundation Inc. and its subsidiary, First Foundation Bank, effective November 14, 2024. With a rich background in corporate governance, including roles at Wells Fargo and as a partner at Cravath, Swaine & Moore LLP, Parker brings valuable expertise to the Compensation and Directors’ Risk Committees. His appointment follows an investment agreement with Fortress Credit Advisors LLC, highlighting strategic movements within First Foundation Inc.
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.