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Dec 31, 2025
First Foundation Q4 2025 Earnings Report
First Foundation Inc. reported a net loss of $8.0 million for the fourth quarter of 2025, or a loss of $0.10 per share.
Key Takeaways
First Foundation Inc. reported a net loss of $8.0 million for Q4 2025, primarily due to hedging and merger-related costs. Despite the loss, the company made significant progress in balance sheet transformation, reducing high-cost funding reliance, and strengthening liquidity and capital positions in anticipation of its merger with FirstSun Capital Bancorp.
Net loss of $8.0 million for the quarter, or $0.10 loss per share, was impacted by $8.5 million in hedging costs and $6.1 million in merger-related costs.
Total net interest income decreased to $39.4 million, primarily due to $6.1 million in hedging costs, though core balance sheet contribution remained stable.
The company completed a $204.8 million multifamily loan securitization, significantly reducing the multifamily loan portfolio and ending the year with $261.4 million in held-for-sale loans.
Total risk-based capital increased to 15.51% at year-end, and the allowance for credit losses to loans held for investment was 1.39%, indicating strengthened risk-capital balance.
Revenue by Segment
Forward Guidance
First Foundation Inc. is focused on a smooth integration with FirstSun Capital Bancorp, aiming for first-quartile performance and continued service in key markets with a full suite of products and services.
Positive Outlook
- Planning for the merger with FirstSun Capital Bancorp is well underway, with an expected close early in the second quarter, subject to regulatory and shareholder approvals.
- Teams are partnering to plan for balance sheet re-positioning and a smooth transition to a higher profitability business model.
- Confidence in the combined entity's ability to deliver EPS accretion and improved return metrics.
- Continued focus on strengthening the institution and ensuring a smooth integration with FirstSun.
- Anticipation of accelerating the realization of opportunities post-merger.
Challenges Ahead
- The pending merger is subject to necessary regulatory and shareholder approvals, which could cause delays.
- There is a risk of failure by either party to satisfy closing conditions in the merger agreement.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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