First Foundation Bank Reaffirms the Strength of Its Financial Position in Wake of Industry Developments

First Foundation Inc. (NASDAQ:FFWM) ("First Foundation" or the "Company"), a financial services company with two wholly-owned operating subsidiaries, First Foundation Advisors and First Foundation Bank today issued the following updated financial information to reiterate its strong financial position as a regional bank.

First Foundation has a resilient core business, with First Foundation Bank managing assets valued at more than $13.2 billion.

First Foundation Bank has a strong liquidity position with the following balances:

• Cash and cash equivalents held on balance sheet of approximately $972 million as of 3/10/23.
• Fully collateralized credit facility from the Federal Home Loan Bank with $2.3 billion available as of 3/10/23.
• Federal Reserve discount window availability of $343 million as of 3/10/23.
• Available uncommitted credit lines of $254 million as of 3/10/23.
• Market value of unpledged securities is $576 million as of 2/28/23, that could be liquidated or pledged to provide additional liquidity if needed.
• Held-to-maturity securities of 6% of assets with an unrecognized adverse mark of only $96 million, as of 2/28/23.
• Loan balance of $10.7 billion as of 3/10/23.
• The loan-to-deposit ratio was 98% as of 3/10/23.

First Foundation Bank has a diversified mix of deposits that has limited-to-no direct exposure to venture capital-backed deposits. Total deposits measured $10.9 billion as of 3/10/23, an increase of $600 million since year-end 2022. Additionally, First Foundation Bank maintained the following deposit balances:

• Total branch deposits of $4.1 billion as of 3/10/23, compared to $4.1 billion of 12/31/22. This is consistent with typical cyclicality of branch inflows and outflows in the first quarter of the year.
• Total digital banking deposits of $876 million as of 3/10/23, compared to $789 million of 12/31/22. This continues to be a robust channel for gathering deposits.
• Total commercial services deposits, or specialty deposits, of $4.0 billion as of 3/10/23, compared to $4.0 billion of 12/31/22. First Foundation Bank's industry reputation for serving this specialized client base remains strong.
• Non-interest-bearing demand deposits measured 24% of total deposits as of 3/10/23.
• Exposure to the technology industry is limited as First Foundation Bank has not focused on technology clients, instead attracting deposits from a variety of sectors.

Additionally, asset quality remains excellent, and First Foundation Bank has experienced no significant changes in classified assets, non-performing assets, and charge-offs since year-end. Known for outstanding credit quality and capital strength, First Foundation Bank has NPAs of 12 basis points as of 12/31/22 and a CET1 ratio of 10.6% as of 12/31/22.

Furthermore, First Foundation Bank has no direct exposure to Silicon Valley Bank or Silvergate Bank.

"Following recent market developments, we wanted to publicly disclose updated information to confirm the strength of our financial position," said Scott F. Kavanaugh, President and CEO. "First Foundation remains stable in this difficult market moment for regional banks through our careful balance between loans and deposits. Our liquidity positions are healthy. Our risk management has kept us well-positioned to serve our clients no matter what shifts in the industry come. We will continue to serve as a trusted partner to our customers."

About First Foundation

First Foundation Inc. (NASDAQ: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 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 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 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; 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 2022 Annual Report on Form 10-K for the fiscal year ended December 31, 2022, that we filed with the SEC on February 28, 2023, 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.

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