FIRST FOUNDATION INC. INVESTOR PRESENTATION
July 2023
PRIVATE WEALTH MANAGEMENT ● PERSONAL BANKING ● BUSINESS BANKING
Safe Harbor Statement
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, 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, 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 the recent bank failures and any related impact on depositor behavior or investor sentiment; risks related to the sufficiency of liquidity; the negative impacts and disruptions resulting from the COVID-19 pandemic on our colleagues, clients, the communities we serve and the domestic and global economy, which may have an adverse effect on our business, financial position and results of operations; the risk that we will not be able to continue our internal growth rate; the performance of loans currently on deferral following the expiration of the respective deferral periods; the risk that we will not be able to access the securitization market 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; risks associated with proxy contests and other actions of activist stockholders, which may cause us to incur significant expense, cause disruption to our business and impact our stock price; 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.
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, 2022, as amended, 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 NASDAQ 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. Where non-GAAP financial measures are used, the comparable GAAP financial measure, as well as the reconciliation to the comparable GAAP financial measure, can be found in the appendix of this presentation as of and for the quarter ended June 30, 2023. 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.
Copyright © 2023 First Foundation Inc. All Rights Reserved
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- Multi-DiversifiedRegional Financial Services Company with a Personal Touch
$12.8 | $5.3 | $1.2 | |||||||
Scale with a | |||||||||
Billion in | Billion in | Billion in Trust | proven | ||||||
COMPANY | Bank Assets | Assets Under | Assets Under | ||||||
business | |||||||||
Management | Advisement | ||||||||
model | |||||||||
NASDAQ: FFWM
Five States: CA, TX, NV, HI, and FL
588 Employees, 31 Branch/Office Locations
CORE | PERSONAL BANKING | PRIVATE WEALTH | |||
PRIVATE BANKING | MANAGEMENT | ||||
BUSINESS | |||||
BUSINESS BANKING | |||||
Complementary services
TRUST
SERVICES
TARGET
CLIENTS
Data as of June 30, 2023.
BUSINESS OWNERS | HIGH NET WORTH INDIVIDUALS |
REAL ESTATE INVESTORS | MULTI-GENERATIONAL FAMILIES |
SMALL AND MEDIUM BUSINESSES | CORPORATE EXECUTIVES |
HOAs, MSRs, 1031 EXCHANGES, TITLE | NONPROFITS |
AND ESCROW COMPANIES | |
LOCAL MUNICIPALITIES |
Focus on providing exceptional service
Copyright © 2023 First Foundation Inc. All Rights Reserved
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2023 Banking Environment
Fed interest rate actions culminated, causing unprecedented challenges throughout the industry during the quarter.
- Fed has raised interest rates 525bps since January 2022, creating significant NIM compression for all banks.
- Total deposits at Q2'23 were $10.81 billion, up $755 million from prior quarter.
- Deposit inflows and outflows normalized in Q2'23.
Copyright © 2023 First Foundation Inc. All Rights Reserved
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Deposits
- As of June 30, 2023, insured and collateralized deposits represent approximately 88% of total deposits, including accounts eligible for pass-through insurance.
- This figure improved from the previously reported 85% of total deposits as of March 31, 2023.
Insured and Collateralized vs. | ||
Uninsured Deposit Mix | ||
($ in thousands) | ||
$8,544 | $9,494, | |
88% | ||
85% | ||
$10,052 | $10,807 | |
Total | Total | |
Deposits | Deposits | |
$1,508 | $1,313, | |
15% | 12% |
March 31, 2023 | June 30, 2023 | |
Insured and Collateralized Deposits | Uninsured and Uncollateralized Deposits | |
Copyright © 2023 First Foundation Inc. All Rights Reserved
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Disclaimer
First Foundation Inc. published this content on 27 July 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 17 August 2023 17:29:09 UTC.
