First Foundation Inc. (FFWM): History, Ownership, Mission, How It Works & Makes Money

When you look at a company like First Foundation Inc. (FFWM), which combines banking and wealth management, do you really understand how its integrated model translates into financial performance right now?

The firm, operating through First Foundation Bank and First Foundation Advisors, manages a substantial book of business, with Assets Under Management (AUM) at FFA reaching $5.3 billion as of mid-2025, but the recent balance sheet transition has been a real headwind.

For instance, while the first quarter of 2025 saw a return to profitability with net income of $6.9 million, the second quarter reported a net loss of $7.7 million as the company strategically sold approximately $858 million in commercial real estate loans to de-risk and reduce high-cost deposits-a move that defintely changes the near-term earnings picture.

This story isn't just about a regional bank; it's about a financial services platform navigating a complex market by trading short-term losses for long-term stability, so let's dig into the history, mission, and mechanics of how this small-cap player makes its money.

First Foundation Inc. (FFWM) History

Given Company's Founding Timeline

You need to understand that First Foundation Inc. (FFWM) is a financial holding company, but its story is much older than its incorporation date. It's a classic example of a wealth management firm building a bank to create a comprehensive, integrated platform for clients.

Year established

The roots of the company trace back to 1985 with the founding of First Foundation Advisors, the wealth management arm. The current holding company, First Foundation Inc., was formally created in 2008.

Original location

The original location for the wealth management firm and the initial bank operations was Irvine, California. The parent company's headquarters has since moved to Irving, Texas.

Founding team members

The original vision belongs to Ulrich "Rick" Keller, Jr., who founded First Foundation Advisors in 1985. The subsequent formation of the bank and holding company was built upon this initial wealth management platform, with Dr. Mitchell M. Rosenberg serving as a director since 2007, marking the start of the integrated entity.

Initial capital/funding

While the initial capital for the 1985 and 2007 formations is not public, a significant, recent capital event was the $228 million equity investment raised in July 2024 [cite: 14 in previous search]. This funding, anchored by Fortress Investment Group and other institutional investors, was a critical move to strengthen the balance sheet and support future growth, especially following the 2023 banking sector volatility.

Given Company's Evolution Milestones

The company's trajectory shows a clear path from a boutique wealth manager to a full-service financial institution, culminating in a major strategic move in late 2025. Here's the quick math on how they got here.

Given Company's Transformative Moments

The most transformative period for First Foundation Inc. has defintely been the last two years, driven by the need to de-risk the balance sheet and find a path to scale in a tough interest rate environment. You can see this urgency in the 2025 quarterly results.

The company's return to profitability in the first quarter of 2025, with a net income of $6.9 million, was a crucial moment, signaling a successful initial turnaround [cite: 2 in previous search]. However, the strategic decision to aggressively reduce commercial real estate (CRE) concentration led to a net loss of $7.7 million in the second quarter of 2025, mostly due to the sale of approximately $858 million principal balance of CRE loans [cite: 5 in previous search]. This was a necessary, painful step to improve the long-term funding profile.

The ultimate transformative moment, which re-maps the company's future, is the merger agreement with FirstSun Capital Bancorp announced in October 2025 [cite: 7 in previous search]. This move is expected to:

• Create a combined entity with total assets of approximately $17 billion on a pro forma basis [cite: 7 in previous search].
• Significantly increase scale and geographic diversification across the US, moving beyond the traditional California base [cite: 7 in previous search].
• Position the combined company for compelling operating and return metrics, including a projected Return on Average Assets of approximately 1.45% in 2027 [cite: 7 in previous search].

This merger, valued at an estimated $785 million, is the capstone of the company's evolution, translating its integrated platform-which currently manages $5.2 billion in Advisory Assets Under Management (AUM) and holds $11.9 billion in Bank Assets as of Q3 2025-into a larger, more stable regional player [cite: 2, 7 in previous search]. To understand the principles that guided this growth, you should review the Mission Statement, Vision, & Core Values of First Foundation Inc. (FFWM).

First Foundation Inc. (FFWM) Ownership Structure

First Foundation Inc. (FFWM) is a publicly traded financial services company, but its ownership structure is heavily weighted toward institutional investors, giving them significant influence over the firm's strategic direction. This structure is currently in flux, as the company is set to be acquired by FirstSun Capital Bancorp in an all-stock merger valued at approximately $785 million, announced in October 2025.

The control rests largely with these large funds and banks, who hold a majority stake, though the pending merger means the ultimate ownership of the combined entity will shift, with First Foundation stockholders owning about 40.5% of the new company.

First Foundation Inc.'s Current Status

First Foundation Inc. is a publicly traded company, with its common stock listed on the New York Stock Exchange (NYSE) under the ticker symbol FFWM. As of November 2025, the most significant factor impacting its status is the definitive agreement to merge with FirstSun Capital Bancorp, the parent company of Sunflower Bank, N.A. The combined entity is expected to have total consolidated assets of approximately $17 billion.

This merger is a direct response to the challenges the company has faced, including a net loss of $7.7 million in the second quarter of 2025, despite a net income of $6.9 million in the first quarter of 2025. The deal aims to stabilize the balance sheet and improve the net interest margin (NIM), which was 1.68% in Q2 2025. This is defintely a pivotal moment for the company.

First Foundation Inc.'s Ownership Breakdown

Institutional shareholders hold the largest block of First Foundation Inc. stock, which is typical for a company of this size. Their collective power means they can exert significant pressure on management and board decisions. Insider ownership, while smaller, is important as it aligns the interests of executives with those of external shareholders. For a deeper dive into the major players, you should be Exploring First Foundation Inc. (FFWM) Investor Profile: Who's Buying and Why?

Here is the approximate breakdown of ownership as of late 2025:

First Foundation Inc.'s Leadership

The company is steered by a seasoned executive team, with key appointments made in late 2024 and throughout 2025, signaling a focus on stability and strategic realignment ahead of the merger. The leadership is responsible for managing the company's $5.3 billion in Assets Under Management (AUM) at First Foundation Advisors as of June 30, 2025.

• Thomas C. Shafer: Chief Executive Officer (CEO) and Director, appointed in November 2024, bringing decades of regional banking experience.
• Simone Lagomarsino: President, who joined in July 2024 and is also a Board member, providing executive oversight.
• Jamie Britton: Executive Vice President and Chief Financial Officer (CFO), a critical role in navigating the financial complexities of the pending merger.
• Max Briggs: Chairman of the Board, who provides governance and strategic direction.
• Dean R. Glassberg: Chief Credit Officer, appointed in October 2025, reflecting the company's focus on improving credit quality.

The immediate next step for you is to monitor the proxy filings related to the FirstSun Capital Bancorp merger, as these documents will detail the final terms and the new combined leadership structure. Finance: Track merger-related SEC filings weekly.

First Foundation Inc. (FFWM) Mission and Values

First Foundation Inc. stands for more than just its balance sheet; its mission centers on providing an integrated platform of wealth management and banking services to empower clients. This commitment to a holistic, client-centric approach is the cultural DNA that guides its operations, even as the company manages a Q2 2025 net loss of $7.7 million.

You're looking for the 'why' behind the numbers, and honestly, the company's core purpose is what differentiates it from larger, more impersonal institutions. They want to be your trusted partner across your entire financial lifecycle, not just a transactional bank. That's a big promise, especially when the trailing 12-month revenue, as of September 30, 2025, was $196 million. Here's the quick math: they need to keep that client focus sharp to drive future profitability.

First Foundation Inc.'s Core Purpose

The company's cultural foundation is built on a few non-negotiable pillars that shape everything from product development to community engagement. They defintely prioritize long-term relationships over short-term gains, which is a critical distinction in the financial services world.

• Client Focus: Providing personalized service and tailored financial solutions.
• Integrity: Operating with transparency and building trust with every interaction.
• Community Reinvestment: Actively supporting local communities, as seen by the $160,000 in grants awarded across five states in 2025.
• Sustainable Growth: Pursuing strategies that ensure long-term stability for clients and shareholders, like the strategic reduction of commercial real estate (CRE) concentration.

This integrated approach is why they serve as a one-stop-shop for complex financial needs. If you want to dive deeper into who's betting on this strategy, you should check out Exploring First Foundation Inc. (FFWM) Investor Profile: Who's Buying and Why?

Official mission statement

The formal mission statement is a precise articulation of their business model: integrating all aspects of a client's financial life under one roof. It's about coordination, helping you avoid the complexity of managing multiple financial relationships.

• Provide integrated investment management, wealth planning, consulting, trust and banking services.

This integration of services is key to their value proposition, especially for high-net-worth individuals and businesses. It's about making your money work together.

Vision statement

The company's vision extends beyond current service offerings, focusing on the ultimate outcome for the client: living the life they've planned for and protecting their wealth for the next generation. It's an empathetic vision that acknowledges the hard work you put in.

• Enable growth-minded individuals and businesses to boldly live the life they imagined.
• Preserve the legacy they've worked so hard to build.
• Assure clients that First Foundation has their backs at every moment, especially the ones that matter.

To put a number on the scale of this vision, their Assets Under Management (AUM) stood at $5.3 billion as of June 30, 2025, showing the significant trust placed in their ability to preserve and grow legacies.

First Foundation Inc. slogan/tagline

The company's tagline is a simple, powerful statement that encapsulates their commitment to being present for their clients during critical financial decisions and life events.

• With you, when it matters most.

It's a concise way of saying they offer sophisticated solutions with personal service, which is what you need when the stakes are high.

First Foundation Inc. (FFWM) How It Works

First Foundation Inc. operates as an integrated financial services company, leveraging its two main subsidiaries-First Foundation Bank (FFB) and First Foundation Advisors (FFA)-to offer a comprehensive suite of banking and private wealth management services. This model allows the company to capture revenue from both interest-based banking activities and fee-based advisory services, creating a single, holistic financial relationship for its clients.

For you, this means First Foundation can handle your checking account, your commercial real estate loan, and your investment portfolio all under one roof. That integration is defintely the core value proposition.

First Foundation Inc.'s Product/Service Portfolio

First Foundation Inc.'s Operational Framework

The operational framework is built on a dual-engine model: the bank (FFB) provides the balance sheet capital and interest income, while the advisory arm (FFA) provides stable, fee-based revenue. This structure aims to balance the cyclical nature of banking with the steadier income stream from wealth management.

• Revenue Generation: The company generates income primarily through net interest income (NII)-the difference between interest earned on loans and interest paid on deposits-and non-interest income from advisory fees. Total revenue for Q2 2025 was $51.42 million.
• Balance Sheet De-risking: A key near-term focus is reducing exposure to commercial real estate (CRE) loans and high-cost deposits. The strategy involves selling off non-core assets, which allowed the company to pay down $975 million of higher-cost deposits in Q2 2025.
• Funding Profile Improvement: Management is actively working to lower the cost of funds. The cost of deposits decreased to 2.95% in Q2 2025, down from 3.04% in the prior quarter, which directly supports the goal of expanding the Net Interest Margin (NIM).

You should also read Breaking Down First Foundation Inc. (FFWM) Financial Health: Key Insights for Investors for a deeper dive into the numbers.

First Foundation Inc.'s Strategic Advantages

First Foundation's market success hinges on its ability to offer the breadth of a large financial institution with the personal touch of a boutique firm. It's a classic community bank feel, but with institutional-grade products.

• Integrated Platform: The seamless connection between First Foundation Bank and First Foundation Advisors provides a single point of contact for clients' complex banking, lending, and investment needs, which is a significant client retention tool.
• Personalized Service Model: It targets financially-sophisticated clients, offering a high level of personalized service and accessibility typically associated with community banks, which differentiates it from larger, more transactional competitors.
• Capital and Liquidity Strength: Despite recent challenges, the company maintained a strong capital base, with a consolidated Common Equity Tier 1 ratio of 11.1% and total liquidity of nearly $3.5 billion as of Q2 2025, providing a buffer against market volatility.
• Net Interest Margin (NIM) Expansion: The company is projecting a material improvement in profitability, guiding for an exit NIM between 1.8% and 1.9% by the end of 2025 as the balance sheet optimization efforts take hold.

First Foundation Inc. (FFWM) How It Makes Money

First Foundation Inc. makes money primarily by operating as an integrated financial services company, which means they generate revenue from two main engines: the spread between interest earned on loans and paid on deposits (Net Interest Income) through First Foundation Bank, and the fees collected from managing client assets (Noninterest Income) through First Foundation Advisors.

First Foundation Inc.'s Revenue Breakdown

For the third quarter of 2025, First Foundation Inc.'s total revenue (net of interest expense) was approximately $63.6 million. This revenue is split between their core banking operations and their wealth management services, with the banking side still representing the majority, but the fee-based income showing strong recent growth.

The Net Interest Income (NII) for Q3 2025 was approximately $46.1 million, down from $50.1 million in Q2 2025. This drop shows the pressure on their core banking margin, a common issue for many regional banks right now. Conversely, Noninterest Income jumped to $17.52 million, which is a huge increase from the $1.3 million reported in the prior quarter, reflecting strong performance in fee-generating activities like wealth management and, in part, gains from loan sales.

Business Economics

The economic fundamentals of First Foundation Inc. are built on a classic bank-and-wealth-manager model, but with a recent, aggressive pivot to manage interest rate risk and credit concentration. You're seeing a deliberate, short-term squeeze on NII as management cleans up the balance sheet.

• Net Interest Margin (NIM) Pressure: The NIM, a key measure of lending profitability, was only 1.60% in Q3 2025. This is low and reflects the challenge of having a significant portion of fixed-rate loans yielding around 4.72% while the cost of deposits remains elevated.
• Strategic De-risking: The company is actively reducing its exposure to Commercial Real Estate (CRE) loans. They sold approximately $858 million principal balance of CRE loans in Q2 2025 to reduce concentration and pay down high-cost funding. This move costs money in the short term but improves the long-term risk profile.
• Fee-Based Stability: The Private Wealth Management business, First Foundation Advisors, provides a more stable, recurring revenue stream. Assets Under Management (AUM) stood at $5.3 billion as of June 30, 2025, generating fees regardless of interest rate volatility. This is defintely a core growth area.

The goal is to push the NIM back up to the projected range of 1.8% to 1.9% by the end of 2025, which will require replacing those lower-yielding assets with new, higher-yielding ones.

First Foundation Inc.'s Financial Performance

The Q3 2025 results show a company in the middle of a significant, painful transition, plus the impact of a large, one-time merger announcement. The headline numbers look rough, but the underlying strategic moves are clear.

• Net Loss and EPS: The company reported a substantial GAAP net loss of $146.3 million, or $1.78 per share, for Q3 2025. This loss was primarily driven by a significant provision for credit losses and a valuation allowance on deferred tax assets. However, the non-GAAP adjusted EPS was a positive $0.16, which actually beat analyst consensus.
• Credit Quality: The Allowance for Credit Losses (ACL) to loans held for investment rose to 1.40% in Q3 2025, up from 0.50% in Q2 2025, reflecting the proactive provisioning for potential loan problems, especially within the CRE portfolio.
• Liquidity and Capital: The Loan-to-Deposit ratio improved to 83.6% in Q3 2025, down from 93.4% in Q2 2025. This is a healthy move, showing they are holding more cash relative to their loans, which improves liquidity and stability.
• Merger Impact: The recently announced merger with FirstSun Capital Bancorp is the biggest near-term factor. The combined entity is expected to have approximately $17 billion in assets, which immediately gives the company more scale and a stronger regional presence. You can read more about their strategic focus in the Mission Statement, Vision, & Core Values of First Foundation Inc. (FFWM).

First Foundation Inc. (FFWM) Market Position & Future Outlook

First Foundation Inc. is in a critical transition phase, moving from a multi-year balance sheet clean-up to a strategic expansion, with the announced merger with FirstSun Capital Bancorp set to redefine its market position as a stronger regional bank in high-growth Southwestern markets. The company's near-term outlook is focused on executing this merger and aggressively improving its net interest margin (NIM) and loan portfolio mix, even as it navigates the high cost of its recent strategic restructuring.

Competitive Landscape

First Foundation operates in the highly fragmented regional bank and private wealth management space, competing with both larger national banks and smaller, more focused community institutions. To be fair, its core advantage is the integrated model, offering both banking and wealth management under one roof, something many regional banks don't do well. Here is a snapshot of its relative size against two key regional peers, based on total assets as of mid-2025, which gives you a clear picture of its scale.

Here's the quick math: Based on Q2 2025 total assets among these three peers-First Foundation at $11.6 billion, Ameris Bancorp at $26.7 billion, and ConnectOne Bancorp at $13.9 billion-First Foundation holds about 22.2% of this combined asset base, positioning it as the smallest of this group but still a significant regional player.

Opportunities & Challenges

You're looking at a company with a clear plan to shift its risk profile and scale up, but that plan carries execution risk. The biggest opportunity is the merger, but the biggest risk is that its legacy issues could eat into the new entity's profitability. The turnaround is defintely a multi-quarter effort.

Industry Position

First Foundation's industry standing is defined by its hybrid model and its current turnaround efforts. Its $5.3 billion in Assets Under Management (AUM) as of Q2 2025 gives it a distinct edge over pure-play regional banks, allowing for crucial fee-based income diversification.

• Integrated Model: The company is one of the few regional players truly combining personalized private wealth management with commercial and private banking, a combination that differentiates it from larger institutions and boutique firms alike.
• Turnaround Status: Management is focused on reducing its Commercial Real Estate (CRE) concentration, with a goal to fully exit the held-for-sale CRE portfolio by the end of 2025.
• Credit Quality: Nonperforming assets (NPAs) as a percentage of total assets improved slightly to 0.35% in Q2 2025, down from 0.36% in Q1 2025, showing asset quality is stabilizing despite the strategic loan sales.
• Analyst View: Wall Street analysts currently hold a consensus of 'Moderate Buy' on the stock, suggesting a belief in the long-term recovery and strategic plan execution.

The merger with FirstSun Capital Bancorp is a bet on the future, aiming to create a premier banking franchise in the Southwest, which will fundamentally change its standing from a smaller, California-centric bank to a larger, more diversified regional force. For a deeper dive into the company's foundational principles, check out Mission Statement, Vision, & Core Values of First Foundation Inc. (FFWM).