• Completion of public offering provides capital for continued growth
• Revenue growth in excess of 20%
• Book value per share up 26% year to date

IRVINE, Calif.--(BUSINESS WIRE)-- First Foundation Inc. (NASDAQ: FFWM), a financial services company with two wholly-owned operating subsidiaries, First Foundation Advisors and First Foundation Bank, which collectively provide investment management, wealth planning, consulting, insurance, trust and banking services primarily to high net-worth individuals and businesses, today reported its financial results for the quarter ended September 30, 2015.

“First Foundation continued to deliver positive results in the third quarter while making material investments in our people, products, and technology,” said CEO Scott F. Kavanaugh. “I am pleased with the growth opportunities that exist in all areas of the platform.”

Financial Highlights

• The Company completed a public offering of common stock in August 2015, raising $131 million (net of underwriters discount and offering expenses). The Company used a portion of the proceeds to pay off our $30 million term loan. This offering increased the Company’s share count by approximately 80%, impacting the comparability of the earnings per share results;
• Net income for the quarter ended September 30, 2015 was $2.8 million, or $0.21 per fully diluted share, as compared to $2.7 million, or $0.32 per fully diluted share for the quarter ended September 30, 2014, an increase of 4%. For the nine months ended September 30, 2015, net income was $8.3 million, or $0.84 per fully diluted share, as compared to $5.4 million, or $0.66 per fully diluted share for the nine months ended September 30, 2014, an increase of 55%;
• Total revenues, which consist of net interest income and noninterest income, increased by 25% and 22%, respectively, for the quarter and nine months ended September 30, 2015, as compared to the corresponding periods in 2014;
• Total loans increased by $479 million in the first nine months of 2015, equivalent to an annualized growth rate of 45%;
• Tangible book value increased from $12.66 per share at December 31, 2014 to $15.96 per share at September 30, 2015; and
• To support the Company’s continuing growth and to leverage the additional capital raised in the public offering, First Foundation has made significant investments in staffing. As a result, noninterest expenses increased 29% during the third quarter of 2015 when compared to the third quarter of 2014, due primarily to a 27% increase in total employees during 2015; in addition, included in noninterest expenses are $0.3 million of one-time costs related to the Pacific Rim Bank acquisition.

About First Foundation

First Foundation, a financial institution founded in 1990, provides integrated investment management, wealth planning, consulting, insurance, trust and banking services. The Company is headquartered in Irvine, California, with offices in Newport Beach, Pasadena, West Los Angeles, Oakland, San Diego, Palm Desert and the Imperial Valley in California; in Las Vegas, Nevada; and in Honolulu, Hawaii. For more information, please visit our website at www.ff-inc.com.

Forward-Looking Statements

Statements in this news release regarding our expectations and beliefs about our future financial performance and financial condition, as well as trends in our business and markets, are "forward-looking statements" as defined in the Private Securities Litigation Reform Act of 1995. Forward-looking statements often include words such as "believe," "expect," "anticipate," "intend," "plan," "estimate," "project," or words of similar meaning, or future or conditional verbs such as "will," "would," "should," "could" or "may." The forward-looking statements in this news release 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 news release and could cause us to make changes to our future plans. Those risks and uncertainties include, but are not limited to, the risk of incurring loan losses, which is an inherent risk of the banking business; the risk that the economic recovery in the United States will stall or will be adversely affected by domestic or international economic conditions and the risk that the Federal Reserve Board will continue to keep interest rates low, any of which could adversely affect our interest income and interest rate margins 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; and the risk that we do not successfully integrate Pacific Rim Bank’s business and customers or otherwise fail to achieve anticipated business enhancements related to the acquisition. Additional information regarding these and other risks and uncertainties to which our business and future financial performance are subject is contained in Item 1A, entitled “Risk Factors” in our 2014 Annual Report on Form 10-K for the fiscal year ended December 31, 2014 that we filed with the SEC on March 16, 2015, and other documents we file with the SEC from time to time. We urge readers of this news release to review the Risk Factors section of that Annual Report. 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 news release, 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 news release or in the above-referenced 2014 Annual Report on Form 10-K, whether as a result of new information, future events or otherwise, except as may be required by law or NASDAQ rules.

FIRST FOUNDATION INC. CONSOLIDATED BALANCE SHEETS - Unaudited (in thousands, except share and per share amounts)
								September 30, 2015								December 31, 2014
ASSETS
Cash and cash equivalents								$	206,338							$	29,692
Securities available-for-sale (“AFS”)									360,559								138,270
Loans held for sale									108,903								-
Loans, net of deferred fees									1,536,005								1,166,392
Allowance for loan and lease losses (“ALLL”)									(11,300	)							(10,150	)
Net loans									1,524,705								1,156,242
Investment in FHLB stock									17,820								12,361
Deferred taxes									11,969								9,748
Premises and equipment, net									2,397								2,187
Real estate owned (“REO”)									4,492								334
Goodwill and intangibles									2,481								197
Other assets									9,083								6,393
Total Assets								$	2,248,747							$	1,355,424
LIABILITIES AND SHAREHOLDERS’ EQUITY
Liabilities:
Deposits								$	1,321,527							$	962,954
Borrowings									660,000								282,886
Accounts payable and other liabilities									9,924								10,088
Total Liabilities									1,991,451								1,255,928
Commitments and contingencies									-								-
Shareholders’ Equity
Common Stock, par value $.001: 20,000,000 shares authorized; 15,962,686 and 7,845,182 shares issued and outstanding at September 30, 2015 and December 31, 2014, respectively									16								8
Additional paid-in-capital									226,796								78,204
Retained earnings									28,714								20,384
Accumulated other comprehensive income, net of tax									1,770								900
Total Shareholders’ Equity									257,296								99,496
Total Liabilities and Shareholders’ Equity								$	2,248,747							$	1,355,424

FIRST FOUNDATION INC. CONSOLIDATED INCOME STATEMENTS - Unaudited (in thousands, except share and per share amounts)
				For the Quarter Ended September 30,												For the Nine Months Ended September 30,
				2015						2014						2015						2014
Interest income:
Loans				$	15,634					$	11,404					$	41,097					$	31,735
Securities					1,107						799						2,744						1,741
FHLB Stock, fed funds sold and deposits					367						181						1,418						514
Total interest income					17,108						12,384						45,259						33,990
Interest expense:
Deposits					1,328						953						3,366						2,595
Borrowings					319						284						1,137						682
Total interest expense					1,647						1,237						4,503						3,277
Net interest income					15,461						11,147						40,756						30,713
Provision for loan losses					570						-						1,473						235
Net interest income after provision for loan losses					14,891						11,147						39,283						30,478
Noninterest income:
Asset management, consulting and other fees					5,870						5,812						17,642						16,053
Other income					998						925						1,850						2,651
Total noninterest income					6,868						6,737						19,492						18,704
Noninterest expense:
Compensation and benefits					10,870						8,764						29,440						25,278
Occupancy and depreciation					2,561						1,867						6,486						5,499
Professional services and marketing costs					1,481						1,192						4,051						4,540
Other expenses					2,044						1,272						4,311						4,195
Total noninterest expense					16,956						13,095						44,288						39,512
Income before taxes on income					4,803						4,789						14,487						9,670
Taxes on income					2,041						2,130						6,157						4,282
Net income				$	2,762					$	2,659					$	8,330					$	5,388
Net income per share:
Basic				$	0.22					$	0.34					$	0.87					$	0.70
Diluted				$	0.21					$	0.32					$	0.84					$	0.66
Shares used in computation:
Basic					12,623,924						7,735,350						9,534,056						7,734,372
Diluted					13,074,935						8,240,424						9,926,445						8,188,633

FIRST FOUNDATION INC. SELECTED FINANCIAL INFORMATION - Unaudited (in thousands, except share and per share amounts)
				For the Quarter Ended September 30,												For the Nine Months Ended September 30,
				2015						2014						2015						2014
Selected Income Statement Data:
Net interest income				$	15,461					$	11,147					$	40,756					$	30,713
Provision for loan losses					570						-						1,473						235
Noninterest Income:
Asset management, consulting and other fees					5,870						5,812						17,642						16,053
Other					998						925						1,850						2,651
Noninterest expense					16,956						13,095						44,288						39,512
Income before taxes					4,803						4,789						14,487						9,670
Net income					2,762						2,659						8,330						5,388
Net income per share:
Basic				$	0.22					$	0.34					$	0.87					$	0.70
Diluted					0.21						0.32						0.84						0.66
Selected Performance Ratios:
Return on average assets - annualized					0.59	%					0.87	%					0.68	%					0.63	%
Return on average equity - annualized					5.8	%					11.5	%					8.1	%					7.9	%
Net yield on interest-earning assets					3.43	%					3.73	%					3.45	%					3.68	%
Efficiency ratio(2)					75.9	%					73.1	%					73.5	%					77.6	%
Noninterest income as a % of total revenues					30.8	%					37.8	%					32.4	%					37.8	%
Other Information:
Loan originations				$	213,489					$	150,386					$	626,128					$	389,890
Charge-offs to average loans - annualized					0.00	%					-	%					0.03	%					-	%

																	September 30, 2015								December 31, 2014
								Selected Balance Sheet Data:
								Cash and cash equivalents									$	206,338							$	29,692
								Loans, net of deferred fees										1,536,005								1,166,392
								Allowance for loan and lease losses (“ALLL”)										(11,300	)							(10,150	)
								Total assets										2,248,747								1,355,424
								Noninterest-bearing deposits										322,859								246,137
								Interest-bearing deposits										998,668								716,817
								Borrowings - FHLB Advances										660,000								263,000
								Borrowings – term note										-								19,886
								Shareholders’ equity										257,296								99,496
								Selected Capital Data:
								Tangible common equity to tangible assets(1)										11.34	%							7.33	%
								Tangible book value per share(1)									$	15.96							$	12.66
								Shares outstanding at end of period										15,962,686								7,845,182
								Other Information:
								Assets under management (end of period)									$	3,294,677							$	3,221,674
								Number of employees										269								211
								Loan to deposit ratio										123.6	%							118.9	%
								Nonperforming assets to total assets										0.29	%							0.11	%
								Ratio of ALLL to loans(3)										0.76	%							0.87	%

(1)			Tangible common equity (also referred to as tangible book value) and tangible assets are equal to common equity and assets, respectively, less $2.5 million and $0.2 million of intangible assets as of September 30, 2015 and December 31, 2014, respectively.
(2)			The efficiency ratio is the ratio of noninterest expense to the sum of net interest income and noninterest income.
(3)			This ratio excludes loans acquired in an acquisition as GAAP requires estimated credit losses for acquired loans to be recorded as discounts to those loans.

FIRST FOUNDATION INC. SEGMENT REPORTING - Unaudited (in thousands)
				For the Quarter Ended September 30,												For the Nine Months Ended September 30,
				2015						2014						2015						2014
Banking:
Interest income				$	17,108					$	12,384					$	45,259					$	33,990
Interest expense					1,509						1,014						3,829						2,753
Net interest income					15,599						11,370						41,430						31,237
Provision for loan losses					570						-						1,473						235
Noninterest income					1,839						967						4,501						2,780
Noninterest expense					11,653						8,216						28,138						22,773
Income before taxes on income				$	5,215					$	4,919					$	16,320					$	12,923
Wealth Management:
Noninterest income				$	5,171					$	5,113					$	15,426					$	14,400
Noninterest expense					4,685						4,351						13,950						13,576
Income before taxes on income				$	486					$	762					$	1,476					$	824
Other and Eliminations:
Interest income				$	-					$	-					$	-					$	-
Interest expense					138						223						674						524
Net interest income					(138	)					(223	)					(674	)					(524	)
Noninterest income					(142	)					(141	)					(435	)					(390	)
Noninterest expense					618						528						2,200						3,163
Income before taxes on income				$	(898	)				$	(892	)				$	(3,309	)				$	(4,077	)

FIRST FOUNDATION INC. ROLLING INCOME STATEMENTS - Unaudited (in thousands)
				For the Quarter Ended
				September 30, 2014						December 31, 2014						March 31, 2015						June 30, 2015						September 30, 2015
Interest income:
Loans				$	11,404					$	12,405					$	12,101					$	13,362					$	15,634
Securities					799						804						815						822						1,107
FHLB Stock, fed funds sold and deposits					181						199						242						809						367
Total interest income					12,384						13,408						13,158						14,993						17,108
Interest expense:
Deposits					953						991						923						1,115						1,328
Borrowings					284						316						364						454						319
Total interest expense					1,237						1,307						1,287						1,569						1,647
Net interest income					11,147						12,101						11,871						13,424						15,461
Provision for loan losses					-						-						150						753						570
Net interest income after provision for loan losses					11,147						12,101						11,721						12,671						14,891
Noninterest income:
Asset management, consulting and other fees					5,812						5,745						5,850						5,922						5,870
Other income					925						300						354						498						998
Total noninterest income					6,737						6,045						6,204						6,420						6,868
Noninterest expense:
Compensation and benefits					8,764						8,272						9,180						9,390						10,870
Occupancy and depreciation					1,867						1,826						1,957						1,968						2,561
Professional services and marketing costs					1,192						1,455						1,058						1,512						1,481
Other expenses					1,272						1,442						1,163						1,104						2,044
Total noninterest expense					13,095						12,995						13,358						13,974						16,956
Income before taxes on income					4,789						5,151						4,567						5,117						4,803
Taxes on income					2,130						2,145						1,941						2,175						2,041
Net income				$	2,659					$	3,006					$	2,626					$	2,942					$	2,762
Net income per share:
Basic				$	0.34					$	0.39					$	0.33					$	0.36					$	0.22
Diluted				$	0.32					$	0.37					$	0.32					$	0.35					$	0.21
Shares used in computation:
Basic					7,735,350						7,744,940						7,855,457						8,070,386						12,623,924
Diluted					8,240,424						8,195,144						8,211,145						8,425,029						13,074,935

FIRST FOUNDATION INC. SELECTED INFORMATION: INTEREST MARGIN - Unaudited (in thousands)
				For the Quarter Ended September 30,												For the Nine Months Ended September 30,
				2015						2014						2015						2014
Average Balances:
Loans				$	1,562,960					$	1,038,829					$	1,378,191					$	978,725
Securities					190,107						133,430						154,538						96,111
Deposits					1,298,268						906,865						1,120,730						855,415
Borrowings					334,022						206,320						334,260						178,709
Average Yield / Rate
Loans					4.00	%					4.39	%					3.98	%					4.33	%
Securities					2.33	%					2.37	%					2.37	%					2.42	%
Deposits					0.41	%					0.42	%					0.40	%					0.41	%
Borrowings					0.38	%					0.55	%					0.45	%					0.51	%
Net Interest Rate Spread					3.30	%					3.58	%					3.33	%					3.54	%
Net Yield on Interest-earning Assets					3.43	%					3.73	%					3.45	%					3.68	%

View source version on businesswire.com: http://www.businesswire.com/news/home/20151022005406/en/

First Foundation Inc.

John Michel

Chief Financial Officer

949-202-4160

[email protected]

Source: First Foundation Inc.

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