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Exhibit 99.1

FIRST FOUNDATION INC. REPORTS THIRD QUARTER 2023 RESULTS

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DALLAS, TX – First Foundation Inc. (NYSE: FFWM), a financial services company with two wholly-owned operating subsidiaries, First Foundation Advisors (“FFA”) and First Foundation Bank (“FFB”), reported net income of $2.2 million, or $0.04 per share (basic and diluted) for the quarter.  Total revenues were $63.8 million for the quarter.  Additionally, we announced today that our Board of Directors has approved the payment of a quarterly cash dividend of $0.01 per common share payable on November 16, 2023, to common shareholders of record as of November 6, 2023.

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Loans

Loan balances decreased to $10.3 billion as of September 30, 2023 compared to $10.6 billion as of June 30, 2023, and remained relatively unchanged compared to September 30, 2022.  Loan fundings totaled $245 million, offset by loan payments and payoffs of $546 million in the quarter.  Commercial and industrial (“C&I”) loans accounted for 90% of total fundings for the quarter, consisting primarily of commercial revolving lines of credit and term loans.  C&I loan originations accounted for 90% of total fundings for the nine months ended September 30, 2023.    

Loan portfolio average yield increased to 4.73% in the third quarter of 2023 compared to 4.69% in the prior quarter and 4.07% in the third quarter of 2022.  Average yields on new loan fundings were 8.35% in the third quarter of 2023 compared to 7.90% in the prior quarter and 4.63% in the third quarter of 2022.

Investment Securities

Investment securities were $1.6 billion as of September 30, 2023, compared to $1.0 billion as of June 30, 2023, and $1.1 billion as of September 30, 2022.  During the quarter, $625 million in investment securities available for sale were purchased, consisting of $400 million in U.S. treasury securities and $225 million in GNMA mortgage-backed securities.  

The allowance for credit losses for investments was $8.5 million for the third quarter of 2023, relatively unchanged from the prior quarter and compared to $11.5 million for the third quarter of 2022.  Unrealized losses (tax-effected) on the available-for-sale portfolio were $18.8 million as of September 30, 2023, compared to $20.8 million as of June 30, 2023.  Unrecognized losses (tax-effected) on the held-to-maturity portfolio were $75.2 million as of September 30, 2023, compared to $64.1 million as of June 30, 2023.  Combined unrealized losses (tax-effected) on the available-for-sale and held-to-maturity portfolios were $94.0 million, or 5.76% of the combined portfolios as of September 30, 2023, compared to $84.9 million or 8.29% of the combined portfolios as of June 30, 2023.

Investment securities portfolio average yield increased to 3.24% in the third quarter of 2023 compared to 2.52% in the prior quarter and 2.34% in the third quarter of 2022.

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Deposits and Borrowings

Deposits were $10.8 billion as of September 30, 2023, compared to $10.8 billion and $9.5 billion as of June 30, 2023, and September 30, 2022, respectively.  Noninterest-bearing demand deposits accounted for 22% of total deposits as of September 30, 2023, compared to 25% and 37% as of June 30, 2023 and September 30, 2022, respectively.  Certificates of deposit accounted for 28% of total deposits as of September 30, 2023, compared to  26% and 9% as of June 30, 2023 and September 30, 2022, respectively.  Core deposits accounted for 75.4% of total deposits as of September 30, 2023, compared to 79.6% and 97.1% as of June 30, 2023 and September 30, 2022, respectively.  Brokered deposits accounted for 24.6% of total deposits as of September 30, 2023, compared to 20.4% and 2.99% as of June 30, 2023 and September 30, 2022, respectively.    

Cost of deposits increased to 3.03% for the third quarter of 2023 compared to 2.85% for the prior quarter and 0.64% for the third quarter of 2022.

Insured and collateralized deposits accounted for approximately 87.4% of total deposits as of September 30, 2023, compared to approximately 88% of total deposits as of June 30, 2023.

Our loan to deposit ratio measured 95.1% as of September 30, 2023, compared to 97.9% and 108.4% as of June 30, 2023 and September 30, 2022, respectively.  

Borrowings were $984 million as of September 30, 2023, compared to $802 million and $1.3 billion as of June 30, 2023, and September 30, 2022, respectively.  Average borrowings outstanding for the quarter ended September 30, 2023, were $587 million compared to $1.7 billion for the prior quarter.  The decrease in average borrowings from the prior quarter was due to the continued paydown of additional borrowings which were used to increase on-balance sheet liquidity following the banking industry events occurring in the later part of the first quarter and into the second quarter of 2023.  As deposit levels stabilized and began to return to previous levels, some of these additional borrowings were paid down.  

Private Wealth Management and Trust Assets

AUM was $5.0 billion as of September 30, 2023, compared to $5.3 billion and $4.6 billion as of June 30, 2023 and September 30, 2022, respectively.  The net change in AUM balance of $0.3 billion from the prior quarter is comprised of the following:  $77 million of new accounts; $248 million of net withdrawals; and $125 million of performance losses.  AUA at FFB’s Trust Department was $1.2 billion as of September 30, 2023, unchanged compared to both June 30, 2023 and September 30, 2022.

Net Interest Income and Net Interest Margin

Net interest income was $52.1 million for the third quarter of 2023, compared to $49.0 million for the prior quarter and $87.7 million for the third quarter of 2022.  Interest income totaled $144.8 million for the third quarter of 2023 compared to $145.3 million for the prior quarter and $108.7 million for the third quarter of 2022.   The slight decrease in interest income compared to the prior quarter was due to a decrease in the average interest-earning asset balances only partially offset by a slight increase in the average yields earned on such balances.  Average interest-earning asset balances totaled $12.6 billion for the third quarter of 2023, compared to $12.9 billion for the prior quarter and $11.3 billion for the third quarter of 2022.  Yields on interest-earning assets averaged 4.56% for the third quarter of 2023, compared to 4.51% for the prior quarter and 3.84% for the third quarter of 2022.

Interest expense was $92.7 million for the third quarter of 2023, compared to $96.3 million for the prior quarter and $21.1 million for the third quarter of 2022. The decrease in interest expense compared to the prior quarter was due to a decrease in average interest-bearing liability balances only partially offset by an increase in the average rates paid on such balances.

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Average interest-bearing liability balances, consisting of interest-bearing deposits, borrowings, and subordinated debt, totaled $9.2 billion for the third quarter of 2023, compared to $9.7 billion for the prior quarter and $6.8 billion for the third quarter of 2022. Rates on interest-bearing liability balances averaged 4.01% for the third quarter of 2023, compared to 3.97% for the prior quarter and 1.23% for the third quarter of 2022.

The 0.05% increase in average yield earned on interest-earning assets was only partially offset by a 0.04% increase in average rate paid on interest-bearing liability balances, contributing to an improvement in net interest margin (“NIM”) for the quarter ended September 30, 2023.  NIM was 1.66% for the third quarter of 2023 compared to 1.51% for the prior quarter and 3.10% for the third quarter of 2022.    

Noninterest Income

Noninterest income was $11.7 million in the third quarter of 2023, compared to $12.1 million in the prior quarter and $12.2 million in the third quarter of 2022.  

Noninterest income during the third quarter of 2023 was comprised of $7.2 million in investment advisory fees from Wealth Management, $1.6 million in trust administrative and consulting fees, $1.8 million in loan and servicing fees, $0.5 million of deposit account fees and other income of $0.6 million.  

Noninterest Expense

Noninterest expense was $64.2 million in the third quarter of 2023, compared to $57.5 million (excluding goodwill impairment) in the prior quarter and $60.3 million in the third quarter of 2022.  

Compensation and benefits were $19.6 million in the third quarter of 2023, compared to $21.0 million in the prior quarter and $29.5 million in the third quarter of 2022.  Compensation and benefits expense decreased due to continued efforts to maximize efficiency and contain costs.  Average FTEs totaled 576 in the third quarter of 2023, compared to 615 in the prior quarter and 721 in the third quarter of 2022.    

Customer service costs were $24.7 million in the third quarter of 2023, compared to $19.0 million in the prior quarter and $13.6 million in the third quarter of 2022.  The increase in customer service costs was due to an increase in depository account balances receiving earnings credit on such accounts as well as an increase in the rates paid on such accounts.    

Our efficiency ratio (non-GAAP) for the third quarter of 2023 was 99.7%, compared to 92.5% for the prior quarter, and 60.0% for the third quarter of 2022.  The third quarter increase in the efficiency ratio is largely attributable to the aforementioned increase in customer service costs during the quarter. The efficiency ratio is a measure of noninterest expense to revenue (net interest income plus noninterest income) on an adjusted basis.

Income Tax Expense

The year-to-date effective income tax rate as of September 30, 2023 is (0.65%), compared to (0.94%) and 26.6% as of June 30, 2023, and September 30, 2022, respectively.  The total year-to-date tax expense as of September 30, 2023 is $1.3 million compared to $1.9 million and $35.7 million as of June 30, 2023, and September 30, 2022, respectively.  The decrease in the effective tax rate was predominately due to the goodwill impairment charge of $215.3 million recognized in the second quarter of 2023, which is not deductible for tax purposes.  Excluding the goodwill impairment, the year-to-date effective tax rate as of September 30, 2023 is 8.7%.    

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Asset Quality

Total nonperforming assets were $13.3 million as of September 30, 2023, compared to $15.8 million and $17.5 million as of June 30, 2023 and September 30, 2022, respectively.  Our ratio of nonperforming assets to total assets was 0.10% as of September 30 2023, compared to 0.12% and 0.14% as of June 30, 2023 and September 30, 2022, respectively. Total delinquent and nonaccrual loans were $38.2 million or 0.37% of total loans as of September 30, 2023, compared to $14.8 million or 0.14% of total loans as of June 30, 2023, and $17.1 million or 0.16% of total loans as of September 30, 2022.  

Our allowance for credit losses for loans was $29.2 million, or 0.28% of total loans held for investment as of September 30, 2023, compared to $31.5 million, or 0.30% of total loans held for investment as of June 30, 2023, and $32.9 million, or 0.32% of total loans held for investment as of September 30, 2022.  Net charge-offs were $0.4 million or 0.01% of average loan balances for the quarter ended September 30, 2023, compared to net charge-offs of $0.5 million or 0.02% of average loan balances for the quarter ended June 30, 2023, and net charge-offs of $0.2 million or 0.01% of average loan balances for the quarter ended September 30, 2022.

The ratio of the allowance for credit losses for loans to total past due and nonaccrual loans was 76.5% as of September 30, 2023, compared to 213.0% and 180.5% as of June 30, 2023, and September 30, 2022, respectively.

Capital

As of September 30 2023, First Foundation Inc. exceeded all Basel III minimum regulatory capital requirements necessary to be considered a well-capitalized depository institution, as summarized in the table below:

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Shareholders' equity totaled $919 million as of September 30, 2023, compared to $916 million and $1.1 billion as of June 30, 2023, and September 30, 2022, respectively.  The change from the prior quarter consists primarily of net income of $2.2 million for the quarter and a net gain in accumulated other comprehensive income (“AOCI”) of $2.0 million for the quarter offset by dividends of $1.1 million paid during the quarter.  Our tangible book value per common share was $16.19 as of September 30, 2023, compared to $16.12 as of June 30, 2023.

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First Foundation Inc. will host a conference call at 8:00 a.m. PT / 11:00 a.m. ET on October 26, 2023, to discuss its financial results. Analysts and investors 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” 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 numbers:  Toll-Free at (888) 330-3416 or Toll at (646) 960-0820 both using conference ID 9332924.  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.

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 clients 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 Twitter.  

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, 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.

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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, 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 NYSE rules.

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CONSOLIDATED BALANCE SHEETS

(unaudited)

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CONSOLIDATED INCOME STATEMENTS

(unaudited)

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SELECTED CONSOLIDATED FINANCIAL DATA AND ASSET QUALITY

(unaudited)

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SEGMENT REPORTING

(unaudited)

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LOAN AND DEPOSIT BALANCES

(unaudited)

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CONSOLIDATED LOAN FUNDING AND YIELDS

(unaudited)