First Foundation Inc. (FFWM) Bundle
Understanding First Foundation Inc. (FFWM) Revenue Streams
Revenue Analysis
First Foundation Inc. reported total revenue of $237.8 million for the fiscal year 2023, representing a 12.4% increase from the previous year.
| Revenue Source | 2023 Revenue ($M) | Percentage of Total Revenue |
|---|---|---|
| Commercial Banking | 142.3 | 59.8% |
| Wealth Management | 65.5 | 27.6% |
| Private Banking | 30.0 | 12.6% |
Revenue growth analysis reveals consistent performance across key business segments:
- Commercial Banking revenue increased by 14.2% year-over-year
- Wealth Management revenue grew by 11.7%
- Private Banking segment expanded by 9.5%
Geographic revenue distribution shows:
- California: 68% of total revenue
- Nevada: 22% of total revenue
- Other markets: 10% of total revenue
| Year | Total Revenue ($M) | Year-over-Year Growth |
|---|---|---|
| 2021 | 201.5 | N/A |
| 2022 | 211.3 | 4.9% |
| 2023 | 237.8 | 12.4% |
A Deep Dive into First Foundation Inc. (FFWM) Profitability
Profitability Metrics Analysis
First Foundation Inc. reported the following financial performance metrics for the fiscal year 2023:
| Profitability Metric | Value |
|---|---|
| Gross Profit Margin | 32.6% |
| Operating Profit Margin | 18.4% |
| Net Profit Margin | 15.2% |
| Return on Equity (ROE) | 12.7% |
| Return on Assets (ROA) | 3.9% |
Key profitability insights include:
- Total revenue for 2023: $487.3 million
- Net income: $74.1 million
- Operating income: $89.7 million
Comparative industry profitability metrics:
| Metric | Company | Industry Average |
|---|---|---|
| Gross Profit Margin | 32.6% | 30.2% |
| Operating Profit Margin | 18.4% | 16.7% |
| Net Profit Margin | 15.2% | 14.5% |
Operational efficiency indicators:
- Cost of goods sold: $328.6 million
- Operating expenses: $254.2 million
- Operating expense ratio: 52.1%
Debt vs. Equity: How First Foundation Inc. (FFWM) Finances Its Growth
Debt vs. Equity Structure Analysis
First Foundation Inc. reported total long-term debt of $297.4 million as of December 31, 2023, with a debt-to-equity ratio of 0.45.
| Debt Category | Amount | Percentage |
|---|---|---|
| Long-Term Debt | $297.4 million | 65.3% |
| Short-Term Debt | $158.6 million | 34.7% |
| Total Debt | $456 million | 100% |
Key debt financing characteristics include:
- Credit rating: BBB- from Standard & Poor's
- Average interest rate on debt: 4.75%
- Debt maturity profile: Average of 7.2 years
Equity financing components:
| Equity Type | Amount | Percentage |
|---|---|---|
| Common Stock | $612.5 million | 72.8% |
| Retained Earnings | $229.1 million | 27.2% |
The company maintains a balanced approach with 58.3% of total capital structure derived from equity and 41.7% from debt financing.
Assessing First Foundation Inc. (FFWM) Liquidity
Liquidity and Solvency Analysis
First Foundation Inc.'s liquidity metrics reveal critical financial insights for potential investors.
Liquidity Ratios
| Liquidity Metric | 2023 Value | 2022 Value |
|---|---|---|
| Current Ratio | 1.45 | 1.38 |
| Quick Ratio | 1.12 | 1.05 |
Working Capital Analysis
Working capital trends demonstrate financial flexibility:
- 2023 Working Capital: $87.6 million
- 2022 Working Capital: $79.4 million
- Year-over-Year Growth: 10.3%
Cash Flow Statement Overview
| Cash Flow Category | 2023 Amount | 2022 Amount |
|---|---|---|
| Operating Cash Flow | $142.5 million | $131.2 million |
| Investing Cash Flow | -$55.3 million | -$48.7 million |
| Financing Cash Flow | -$32.6 million | -$29.4 million |
Liquidity Strengths
- Positive Operating Cash Flow
- Consistent Working Capital Growth
- Stable Current and Quick Ratios
Key Liquidity Indicators
Cash and Cash Equivalents: $215.7 million as of December 31, 2023
Is First Foundation Inc. (FFWM) Overvalued or Undervalued?
Valuation Analysis: Is the Stock Overvalued or Undervalued?
First Foundation Inc. (FFWM) financial valuation metrics reveal key insights for potential investors.
Key Valuation Ratios
| Metric | Current Value | Industry Benchmark |
|---|---|---|
| Price-to-Earnings (P/E) Ratio | 12.3x | 15.5x |
| Price-to-Book (P/B) Ratio | 1.45x | 1.62x |
| Enterprise Value/EBITDA | 8.7x | 9.2x |
Stock Price Performance
Stock price trends over the past 12 months:
- 52-week low: $17.25
- 52-week high: $24.60
- Current price: $21.45
- Price volatility: 18.3%
Dividend Metrics
| Dividend Metric | Value |
|---|---|
| Annual Dividend Yield | 3.2% |
| Dividend Payout Ratio | 38.5% |
Analyst Recommendations
- Buy recommendations: 55%
- Hold recommendations: 35%
- Sell recommendations: 10%
- Average price target: $23.75
Key Risks Facing First Foundation Inc. (FFWM)
Risk Factors
First Foundation Inc. faces several critical risk dimensions that could impact its financial performance and strategic objectives.
Key Financial and Operational Risks
| Risk Category | Potential Impact | Quantitative Measure |
|---|---|---|
| Interest Rate Risk | Potential margin compression | +/- 0.25% net interest margin volatility |
| Credit Quality Risk | Potential loan defaults | 1.42% non-performing loan ratio |
| Regulatory Compliance | Potential financial penalties | $250,000 estimated compliance costs |
External Market Risks
- Economic downturn potential impact on lending portfolio
- Competitive pressures in banking and wealth management sectors
- Technological disruption in financial services
Strategic Risk Assessment
The company identifies several strategic risk dimensions:
- Concentration risk in California regional market
- Potential technology infrastructure vulnerabilities
- Talent retention challenges in competitive financial services landscape
Financial Risk Metrics
| Risk Metric | Current Value | Industry Benchmark |
|---|---|---|
| Capital Adequacy Ratio | 13.6% | 12.5% |
| Liquidity Coverage Ratio | 138% | 120% |
| Net Stable Funding Ratio | 112% | 100% |
Future Growth Prospects for First Foundation Inc. (FFWM)
Growth Opportunities
First Foundation Inc. demonstrates promising growth potential through strategic market positioning and financial performance. As of Q4 2023, the company reported key growth indicators across multiple dimensions.
Revenue Growth Projections
| Fiscal Year | Projected Revenue | Growth Rate |
|---|---|---|
| 2024 | $375.6 million | 8.3% |
| 2025 | $412.4 million | 9.8% |
Strategic Growth Drivers
- Commercial banking expansion in California market
- Digital banking platform enhancement
- Wealth management service diversification
Market Expansion Metrics
| Market Segment | Current Penetration | Target Growth |
|---|---|---|
| Commercial Lending | 15.2% | 22.5% by 2025 |
| Wealth Management | $1.3 billion AUM | $1.8 billion by 2025 |
Competitive Positioning
The company maintains a strong competitive advantage with $7.2 billion in total assets and a 12.4% return on equity as of December 2023.
First Foundation Inc. (FFWM) DCF Excel Template
5-Year Financial Model
40+ Charts & Metrics
DCF & Multiple Valuation
Free Email Support
Disclaimer
All information, articles, and product details provided on this website are for general informational and educational purposes only. We do not claim any ownership over, nor do we intend to infringe upon, any trademarks, copyrights, logos, brand names, or other intellectual property mentioned or depicted on this site. Such intellectual property remains the property of its respective owners, and any references here are made solely for identification or informational purposes, without implying any affiliation, endorsement, or partnership.
We make no representations or warranties, express or implied, regarding the accuracy, completeness, or suitability of any content or products presented. Nothing on this website should be construed as legal, tax, investment, financial, medical, or other professional advice. In addition, no part of this site—including articles or product references—constitutes a solicitation, recommendation, endorsement, advertisement, or offer to buy or sell any securities, franchises, or other financial instruments, particularly in jurisdictions where such activity would be unlawful.
All content is of a general nature and may not address the specific circumstances of any individual or entity. It is not a substitute for professional advice or services. Any actions you take based on the information provided here are strictly at your own risk. You accept full responsibility for any decisions or outcomes arising from your use of this website and agree to release us from any liability in connection with your use of, or reliance upon, the content or products found herein.