First Foundation Files Investor Presentation for 2023 Annual Meeting

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 announced that it has filed an investor presentation with the U.S. Securities and Exchange Commission (“SEC”) in connection with its 2023 Annual Meeting of Stockholders, which is scheduled to be held on Tuesday, June 27, 2023. The full presentation can be found here.

Key Highlights of the Presentation

• From First Foundation’s Nasdaq listing in November 2014 through March 2022, before the U.S. Federal Reserve began aggressively raising interest rates, First Foundation’s stock outperformed, reflecting excellent operating results. During that time, First Foundation’s total stockholder return was 174% while the KBW Nasdaq Regional Banking Index rose just 58%. First Foundation rapidly grew its assets while maintaining excellent credit quality, a difficult combination to achieve. This resulted in an improving efficiency ratio, a rising return on average tangible common equity, and strong growth in tangible book value per share. Prior to the Fed tightening cycle, a move that shifted the ground under all regional banks, First Foundation was outperforming peers in many aspects.
• First Foundation’s Board of Directors (“Board”) and executive management quickly and proactively took decisive action to protect the strength and stability of the business amid the rising rate environment. During the fourth quarter of 2022 when the rapidness of the Fed’s interest rate increases was becoming apparent, First Foundation took proactive steps to mitigate the effects on our business model. These steps included:
  • Suspending almost all lending activity and focusing lending on shorter-maturity and adjustable rate loans;
  • Positioning the Company to maintain focus on client service and our ability to offer solutions to clients, which helped to instill and restore confidence;
  • Implementing a liquidity funding strategy where members of management met twice a week to discuss potential actions and reevaluate our practices;
  • Stabilizing and then attracting new deposits, including adding $138 million in total deposits during the period March 31, 2023 to May 12, 2023;
  • Decreasing our uninsured deposits from 26% as of year-end 2022, to approximately 13% as of May 12, 2023;
  • Maintaining our high underwriting standards, as evidenced by our LTVs of 55.3% for multifamily loans and 54.9% for single-family loans as of May 12, 2023;
  • Maintaining a strong liquidity position of $3.5 billion, with $1.3 billion in cash and securities as of March 31, 2023; and
  • Making the difficult but necessary decision to reduce staffing.
• Our experienced, diverse, and qualified Board is well-suited to continue overseeing the execution of our strategy. Our directors bring expertise in areas such as finance, banking, real estate, accounting, human resources, and risk management. Among their ranks are the President and CEO of an international consulting firm, the Co-Founder and current President and CEO of a wealth management company, and the COO and CFO for a REIT. John Hakopian, Driver’s target, has extensive experience with the Company as one of the founders of First Foundation Advisors and has grown the business steadily to $5.2B AUM. He oversees the vision, strategy, operations, and development of investment management services for the firm. His investment experience brings insight into macroeconomics, interest rate risks and credit rate risks that makes him a valuable member of our Board.
• We have the proven ability to recruit and retain top-tier directors who can drive value for stockholders. Driver’s candidate lacks the experience and qualifications required of a director of a publicly traded financial services institution. Our ability to proactively add new, independent directors who can offer fresh perspectives is evidenced by our recent appointment of Gabriel Vazquez to the Board. The skills and professional experience of Mr. Vazquez stand in stark contrast to those of Driver Management’s proposed nominee, who we believe lacks the necessary skills and experience required of a director of a publicly traded financial services institution. In addition, there have been several material omissions that Driver and its nominee made, which call into question the willingness of Driver’s nominee to be fully transparent, act ethically, and work constructively with our Board. Our current Board is well-positioned to make the necessary changes without any outside disruption that would be value destructive.

We urge you to support First Foundation by voting “FOR” your incumbent directors Ulrich E. Keller, Jr., Scott F. Kavanaugh, Max A. Briggs, John A. Hakopian, David G. Lake, Elizabeth A. Pagliarini, Mitchell M. Rosenberg, Ph.D, Diane M. Rubin, Jacob P. Sonenshine, and Gabriel V. Vazquez and selecting “WITHHOLD” for the Driver Nominee on your BLUE Proxy Card.