この登録声明書はForm F-3で提出されました。

展示99.1

ファースト・ファウンデーション・インクが2024年第3四半期の業績を報告

この登録声明書はForm F-3で提出されました。

この登録声明書はForm F-3で提出されました。

この登録声明書はForm F-3で提出されました。

DALLAS, TX - ファースト・ファウンデーション社（NYSE: FFWM）は、完全子会社であるファースト・ファウンデーション・アドバイザーズ（FFA）とファースト・ファウンデーション・バンク（FFB）を持つ金融サービス企業で、2024年第3四半期に1株当たり$1.23の$8220万の当期純損失を報告しました。 2024年第3四半期の結果には、マルチファミリーローンの$19億の元本残高が投資用ローンから販売用ローンに再分類された11750万ドルのLOCOm調整が含まれています。再分類は、ローンを証券化したり売却したりするためのオプションを検討しつつ、最終執行価格を最大化することを目的としています。 LOCOm調整およびその他の調整の影響を除いた第3四半期の調整後の一株当たり純利益（非GAAP）は、$270万、または$0.04（基本および希薄）でした。

この登録声明書はForm F-3で提出されました。

この登録声明書はForm F-3で提出されました。

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Loans

Loan balances totaled $9.9 billion as of September 30, 2024, compared to $10.1 billion and $10.3 billion as of June 30, 2024, and September 30, 2023, respectively.  During the quarter, a portion of the multifamily loan portfolio totaling $1.9 billion principal balance was transferred from loans held for investment to loans held for sale.  Loans held for sale are accounted for at the lower of amortized cost or fair value and as a result, a LOCOM adjustment totaling $117.5 million, equating to 93.8% fair-value pricing, was recorded to earnings in the quarter.  The transfer is expected to provide the flexibility needed to work with credit-minded counterparties in exploring a variety of options for securitizing or selling the loans and maximizing final execution pricing.  

Loan fundings totaled $366 million, offset by loan payments and payoffs of $467 million, in the quarter.  This compares to loan fundings totaling $516 million, offset by loan payments and payoffs of $515 million, in the prior quarter and loan fundings totaling $245 million, offset by loan payments and payoffs of $546 million in the third quarter of 2023.  Commercial and industrial (“C&I”) loans accounted for 90% of total fundings for the quarter, and 87% of total fundings year to date.  C&I loans consist primarily of commercial revolving lines of credit and term loans.

There were no loan sales during the quarter.

Loan portfolio average yield was 4.77% in the quarter, unchanged from the prior quarter and an increase of 4 basis points compared to 4.73% in the third quarter of 2023.  Average yields on new loan fundings were 8.23% in the quarter compared to 8.19% in the prior quarter and 8.35% in the third quarter of 2023.

Investment Securities

Investment securities were $2.0 billion as of September 30, 2024, compared to $1.9 billion and $1.6 billion as of June 30, 2024 and September 30, 2023, respectively.  During the quarter, $206 million in investment securities were purchased, offset by $48 million in principal paydowns.  The investment securities purchased during the quarter consisted of agency mortgage-backed securities at a weighted average yield of 5.64%.  

The allowance for credit losses for investments was $7.3 million as of September 30, 2024, relatively unchanged from the prior quarter and decreased compared to $8.5 million as of September 30, 2023.  Unrealized losses (tax-

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effected) on the available-for-sale portfolio totaled $0.7 million as of September 30, 2024, compared to $16.6 million as of June 30, 2024.  Unrecognized losses (tax-effected) on the held-to-maturity portfolio totaled $41.8 million as of September 30, 2024, compared to $56.4 million as of June 30, 2024.  Combined unrealized and unrecognized losses (tax-effected) on the available-for-sale and held-to-maturity portfolios totaled $42.5 million, or 2.08% of the combined portfolios as of September 30, 2024, compared to $73.0 million or 3.91% of the combined portfolios as of June 30, 2024.  The decrease in unrealized and unrecognized losses (tax-effected) was largely driven by the fall in the 10-year Treasury yield which is the benchmark that agency mortgage-backed securities follow.  The 10-year Treasury yield fell 62 basis points to 3.78% as of September 30, 2024, compared to 4.40% as of June 30, 2024.

Investment securities portfolio average yield was 4.06% in the quarter, compared to 4.00% in the prior quarter and 3.24% in the third quarter of 2023.

Deposits and Borrowings

Deposits were $10.3 billion as of September 30, 2024, compared to $10.8 billion as of June 30, 2024, and September 30, 2023.  Noninterest-bearing demand deposits accounted for 21% of total deposits as of September 30, 2024, compared to 20% and 22% as of June 30, 2024, and September 30, 2023, respectively.  Certificates of deposit accounted for 25% of total deposits as of September 30, 2024, compared to 26% and 28% as of June 30, 2024, and September 30, 2023, respectively.  Core deposits accounted for 64% of total deposits as of September 30, 2024, compared to 62% and 68% as of June 30, 2024, and September 30, 2023, respectively.  Brokered deposits accounted for 36% of total deposits as of September 30, 2024, compared to 38% and 32% as of June 30, 2024, and September 30, 2023, respectively.    

Cost of deposits was 3.41% for the quarter, compared to 3.49% for the prior quarter and 3.03% for the third quarter of 2023.

Insured and collateralized deposits accounted for approximately 85% of total deposits as of September 30, 2024, relatively unchanged from the prior quarter.

Our loan to deposit ratio measured 95.9% as of September 30, 2024, compared to 93.8% and 95.1% as of June 30, 2024, and September 30, 2023, respectively.  The increase was largely due to a decrease in wholesale deposits.  

Borrowings were $1.7 billion as of September 30, 2024, compared to $1.7 billion and $984 million as of June 30, 2024, and September 30, 2023, respectively.  Average borrowings outstanding were $1.7 billion or 12.6% of total average assets for the quarter, compared to $1.4 billion or 10.4% of total average assets for the prior quarter and $0.6 billion or 4.5% for the third quarter of 2023.  The weighted average rate paid on borrowings was 4.04% for the quarter, compared to 4.12% for the prior quarter and 4.16% for the third quarter of 2023.  Borrowings include $266.6 million in borrowings from the Bank Term Funding Program (“BTFP”) at the Federal Reserve Bank at a rate of 4.76%, which will mature in January 2025.

As of September 30, 2024, our unused borrowing capacity was $2.9 billion, which consists of available lines of credit with FHLB and other correspondent banks as well as access to the Federal Reserve Bank’s discount window.

Private Wealth Management and Trust Assets

Our AUM balance was $5.5 billion as of September 30, 2024, relatively unchanged from the prior quarter, and compared to $5.0 billion as of September 30, 2023.  Activity within the AUM balance during the quarter consisted of the following:  $38 million of new accounts; $194 million of net withdrawals; and $167 million of performance

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gains.  AUA at FFB’s Trust Department was $1.2 billion as of September 30, 2024, compared to $1.1 billion in both the prior quarter and $1.2 billion at September 30, 2023.

Net Interest Income and Net Interest Margin

Net interest income was $49.1 million for the quarter, compared to $43.8 million for the prior quarter and $52.1 million for the third quarter of 2023.  Interest income totaled $157.2 million for the quarter, compared to $150.9 million for the prior quarter and $144.8 million for the third quarter of 2023.  The increase in interest income compared to the prior quarter was due to an increase in average interest-earning asset balances and an increase in the average rates earned on such balances.  Average interest-earning asset balances totaled $13.2 billion for the quarter, compared to $12.8 billion for the prior quarter and $12.6 billion for the third quarter of 2023.  Yields on interest-earning assets averaged 4.75% for the quarter, compared to 4.71% for the prior quarter and 4.56% for the third quarter of 2023.

Interest expense was $108.0 million for the quarter, compared to $107.1 million for the prior quarter and $92.7 million for the third quarter of 2023.  The increase in interest expense compared to the prior quarter was due primarily to an increase in average interest-bearing liability balances, offset by a decrease in rates paid on such balances.  Average interest-bearing liability balances, consisting of interest-bearing deposits, borrowings, and subordinated debt, totaled $10.13 billion for the quarter, compared to $10.09 billion from the prior quarter and $9.2 billion for the third quarter of 2023.  Rates on interest-bearing liability balances averaged 4.24% for the quarter, compared to 4.27% for the prior quarter and 4.01% for the third quarter of 2023.  Rates on interest-bearing deposits averaged 4.29% for the quarter, compared to 4.30% for the prior quarter and 4.00% for the third quarter of 2023.  Rates on borrowings averaged 4.04% for the quarter, compared to 4.12% for the prior quarter and 4.16% for the third quarter of 2023.  

The 0.04% increase in average yield earned on interest-earning assets in addition to a 0.03% decrease in average rate paid on interest-bearing liability balances, contributed to an increase in net interest margin (“NIM”) for the quarter.  NIM was 1.50% for the quarter, compared to 1.36% for the prior quarter and 1.66% for the third quarter of 2023.    

Noninterest Income

Noninterest income totaled ($105.6) million for the quarter and ($79.2) million for the year-to-date period ended September 30, 2024, and included a LOCOM adjustment to account for the transfer of a portion of the multifamily loan portfolio from loans held for investment to loans held for sale during the third quarter.  The LOCOM adjustment totaled $117.5 million and is recorded as a component of capital market activities in the accompanying income statement.  The transferred loans are carried on the balance sheet at lower of amortized cost or fair value and the LOCOM adjustment equates to a 93.8% fair-value pricing as of September 30, 2024.  Excluding the LOCOM adjustment, noninterest income was $11.9 million in the quarter, compared to $13.7 million in the prior quarter and $11.7 million in the third quarter of 2023.  

Noninterest income (excluding the LOCOM adjustment) during the quarter was comprised of $7.4 million in investment advisory fees, $1.7 million in trust consulting and administrative fees, $1.6 million in loan and servicing fees, $0.4 million of deposit account fees and other income of $0.8 million.

Noninterest income as a percentage of total revenues was 186.1% for the quarter, compared to 23.4% for the prior quarter and 17.8% for the third quarter of 2023.  Recurring noninterest income as a percentage of total revenues was 19.7% for the quarter, compared to 20.4% for the prior quarter and 17.8% for the third quarter of 2023.   Recurring noninterest income represents investment advisory fees, trust consulting and administrative fees, loan and servicing fees, deposit account fees, and other income.

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Noninterest Expense

Noninterest expense was $60.2 million in the quarter, compared to $55.6 million in the prior quarter and $64.2 million in the third quarter of 2023.  Noninterest expense to average total assets was 1.79% in the quarter, compared to 1.69% in the prior quarter and 1.98% in the third quarter of 2023.  

Customer service costs accounted for a majority of the increase in noninterest expense in the quarter when compared to the prior quarter.  Customer service costs were $19.0 million in the quarter, compared to $16.1 million in the prior quarter and $24.7 million in the third quarter of 2023.  The increase in customer service costs was due to both an increase in the average balances of depository accounts receiving earnings credit as well as a slight increase in the average rates paid on such accounts, as the recent decline in the Fed Funds target rate occurred late in the quarter. The increase in average balances of depository accounts receiving earnings credit was due to seasonally returning mortgage servicing-related deposits which typically increase during the latter half of the year.    

Our efficiency ratio (non-GAAP) for the quarter was 98.1%, compared to 96.1% for the prior quarter, and 99.7% for the third quarter of 2023.  The efficiency ratio is a measure of noninterest expense to revenue (net interest income plus noninterest income) on an adjusted basis.

Income Tax Expense

We recorded income tax benefit of $34.8 million in the third quarter of 2024, compared to a tax benefit of $421 thousand in the prior quarter and $600 thousand in the third quarter of 2023. Our effective tax rates for the third quarter of 2024, the prior quarter and the third quarter of 2023 were 29.7%, -15.8%, and –38.0%, respectively.  The changes in the effective tax rate were predominately due to the changes in pretax income, most notably in the current quarter there was a $117.5 million LOCOM loss related to the reclassification of $1.9 billion of loans from loans held for investment to loans held for sale.      

Asset Quality

Total nonperforming assets were $44.4 million as of September 30, 2024, compared to $25.1 million and $13.3 million as of June 30, 2024, and September 30, 2023, respectively.  The increase in nonperforming assets was due primarily to the addition of two single-family loans totaling $19.2 million during the quarter.  Our ratio of nonperforming assets to total assets was 0.33% as of September 30, 2024, compared to 0.18% and 0.10% as of June 30, 2024, and September 30, 2023, respectively. Total delinquent and nonaccrual loans were $67.4 million or 0.83% of total loans held for investment as of September 30, 2024, compared to $33.2 million or 0.33% of total loans held for investment as of June 30, 2024, and $38.2 million or 0.37% of total loans held for investment as of September 30, 2023.  

Our allowance for credit losses for loans was $29.3 million, or 0.36% of total loans held for investment as of September 30, 2024, compared to $29.3 million, or 0.29% of total loans held for investment as of the prior quarter, and $29.2 million, or 0.28% of total loans held for investment as of September 30, 2023.  Net charge-offs were $0.3 million or 0.01% of average loan balances for the quarter, relatively unchanged from the prior quarter, and net charge-offs of $0.4 million or 0.01% of average loan balances for the third quarter of 2023.

The ratio of the allowance for credit losses for loans to total past due and nonaccrual loans was 43.5% as of September 30, 2024, compared to 88.1% and 76.5% as of June 30, 2024, and September 30, 2023, respectively.

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Capital

The following table sets forth our regulatory capital ratios as of the dates indicated:

Shareholders' equity totaled $1,069.8 million as of September 30, 2024, compared to $933.2 million and $919.2 million as of June 30, 2024, and September 30, 2023, respectively.  The change from the prior quarter consists primarily of $214.5 million in net proceeds received from the July 2024 capital raise, net loss of $82.2 million for the quarter and a net gain in accumulated other comprehensive income (“AOCI”) of $4.5 million for the quarter.  In the July 2024 capital raise, the Company sold and issued shares of common stock, preferred stock, and warrants all of which are more fully described on Form 8-K filed with the SEC on July 9, 2024.  Our tangible book value per common share (non-GAAP measure) was $15.71 as of September 30, 2024, compared to $16.43 as of June 30, 2024, and $16.19 as of September 30, 2023.  The decrease in tangible book value per common share during the quarter is reflective of the additional common shares issued as part of the July 2024 capital raise as well as the quarterly net loss, which includes the LHFS LOCOM adjustment.  Our tangible book value per common share as converted (non-GAAP measure) was $9.50 as of September 30, 2024.  

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First Foundation Inc. will host a conference call at 8:00 a.m. PT / 11:00 a.m. ET on Tuesday, October 29, 2024 to discuss its financial results. Analysts, investors, and the general public may participate in the question-and-answer session. The call will be broadcast live over the Internet and can be accessed by visiting First Foundation’s website and clicking on “Investor Relations” and “Events & Presentations” at https://investor.ff-inc.com/events-and-presentations/default.aspx.  For those wishing to participate in the question-and-answer session, the conference call can be accessed by telephone at the following dial-in number:  Toll-Free at (888) 596-4144 using conference ID 2340475.  It is recommended that participants dial into the conference call approximately ten minutes prior to the call. For those who are unable to participate during the live call, an archive of the call will be available for replay at https://investor.ff-inc.com/events-calendar.

About First Foundation

First Foundation Inc. (NYSE: FFWM) and its subsidiaries offer personal banking, business banking, and private wealth management services, including investment, trust, insurance, and philanthropy services. This comprehensive platform of financial services is designed to help each client at any stage in their financial journey. The broad range of financial products and services offered by First Foundation are more consistent with those offered by larger financial institutions, while its high level of personalized service, accessibility, and responsiveness to clients is more aligned with those of community banks and boutique wealth management firms. This combination of an integrated platform of comprehensive financial products and personalized service differentiates First Foundation from many of its competitors and has contributed to the growth of its client base and business. Learn more at firstfoundationinc.com, or connect with us on LinkedIn and X (formerlyTwitter).  

Forward-Looking Statements

This report includes forward-looking statements within the meaning of the “Safe-Harbor” provisions of the Private Securities Litigation Reform Act of 1995, including forward-looking statements regarding our expectations and beliefs about our future financial performance and financial condition, potential loan sales, as well as trends in our business and markets. Forward-looking statements often include words such as "believe," "expect," "anticipate," "intend," "plan," "estimate," "project," "outlook," or words of similar meaning, or future or conditional verbs such as "will," "would," "should," "could," or "may." The forward-looking statements in this report are based on current information and on assumptions that we make about future events and circumstances that are subject to a number of risks and uncertainties that are often difficult to predict and beyond our control. As a result of those risks and uncertainties, our actual financial results in the future could differ, possibly materially, from those expressed in or implied by the forward-looking statements contained in this report and could cause us to make changes to our future plans. Those risks and uncertainties include, but are not limited to, changes in our capital management and balance sheet strategies and our ability to successfully implement such strategies; changes in our strategic plan, and our ability to successfully implement such plan; whether and when certain of our preferred stock converts into common stock and the capital treatment of such shares prior to conversion; the risk of incurring credit losses, which is an inherent risk of the banking business; the quality and quantity of our deposits; adverse developments in the financial services industry generally such as bank failures and any related impact on depositor behavior or investor sentiment; risks related to the sufficiency of liquidity; risk that we will not be able to maintain growth at historic rates or at all; the risk that we will not be able to access the securitization market or otherwise sell loans on favorable terms or at all; changes in general economic conditions, either nationally or locally in the areas in which we conduct or will conduct our business; risks associated with changes in interest rates, which could adversely affect our interest income, interest rate margins, and the value of our interest-earning assets, and therefore, our future operating results; the risk that the performance of our investment management business or of the equity and bond markets could lead clients to move their funds from or close their investment accounts with us, which would reduce our assets under management and adversely affect our operating results; negative impacts of news or analyst reports about us or the financial services industry; the impacts of inflation on us and our customers; results of examinations by regulatory authorities and the possibility that such regulatory authorities may, among other things, limit our business activities or our ability to pay dividends, or impose fines, penalties or sanctions; the risk that we may be unable or that our board of directors may determine that it is inadvisable to pay future dividends at historic levels or at all; risks associated with changes in income tax laws and regulations; and risks associated with seeking new client relationships and maintaining existing client relationships.

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Additional information regarding these and other risks and uncertainties to which our business and future financial performance are subject is contained in our Annual Report on Form 10-K for the fiscal year ended December 31, 2023, and other documents we file with the SEC from time to time. We urge readers of this report to review those reports and other documents we file with the SEC from time to time. Also, our actual financial results in the future may differ from those currently expected due to additional risks and uncertainties of which we are not currently aware or which we do not currently view as, but in the future may become, material to our business or operating results. Due to these and other possible uncertainties and risks, readers are cautioned not to place undue reliance on the forward-looking statements contained in this report, which speak only as of today's date, or to make predictions based solely on historical financial performance. We also disclaim any obligation to update forward-looking statements contained in this report or in the above-referenced reports, whether as a result of new information, future events or otherwise, except as may be required by law or NYSE rules.

Non-GAAP Financial Measures

This presentation contains both financial measures based on GAAP and non-GAAP based financial measures, which are used when management believes them to be helpful in understanding the Company's results of operations or financial position. These disclosures should not be viewed as a substitute for operating results determined in accordance with GAAP, nor are they necessarily comparable to non-GAAP performance measures that may be presented by other companies.

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CONSOLIDATED BALANCE SHEETS

(unaudited)

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SELECTED CONSOLIDATED FINANCIAL DATA AND ASSET QUALITY

(unaudited)

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SEGMENT REPORTING

(unaudited)