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First Foundation Q1 2025 Earnings Report
First Foundation Inc. reports net income of $6.9 million and diluted EPS of $0.08 for the first quarter of 2025, with total revenue of $71.3 million.
Key Takeaways
First Foundation Inc. returned to profitability in the first quarter of 2025, reporting net income of $6.9 million and diluted earnings per share of $0.08. The company saw continued expansion in its net interest margin and a decrease in total delinquent loans, indicating improved asset quality.
Net income for the quarter was $6.9 million, with diluted earnings per share of $0.08.
Total revenue reached $71.3 million, driven by a net interest margin expansion to 1.67%.
Total delinquent loans decreased to $16.1 million, a significant reduction from the prior quarter.
The total risk-based capital ratio increased to 14.04%, demonstrating strong capital positions.
First Foundation
First Foundation
First Foundation Revenue by Segment
Revenue by Segment
Banking Revenue
CapyFin.comWealth Management Revenue
CapyFin.comOther and Eliminations Revenue
CapyFin.com Forward Guidance
First Foundation Inc. is focused on continued profitability improvements, driven by reducing CRE exposure, improving funding profile, and expanding core private banking and commercial franchises. The company expects continued momentum into the second quarter, with efforts to reduce brokered and high-cost deposits and optimize earning assets.
Positive Outlook
- Continued expansion of net interest margin expected.
- Focus on reducing multifamily portfolio will allow for reduction in brokered and high-cost deposits.
- Optimization of lower-yielding earning assets to support additional margin expansion.
- Commitment to improving funding profile.
- Freeing up capacity to grow core private banking and commercial franchises.
Challenges Ahead
- Risk of incurring credit losses, an inherent risk in banking.
- Potential for adverse developments in the financial services industry, including bank failures.
- Risk of not maintaining growth at historic rates or accessing securitization markets on favorable terms.
- Possibility of not fully utilizing deferred tax assets, potentially leading to valuation allowances.
- Uncertainty regarding changes in interest rates and their impact on interest income and asset values.