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‌Exhibit 99.1

FIRST FOUNDATION INC. REPORTS FOURTH QUARTER AND FULL YEAR 2021 RESULTS

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DALLAS, TX – First Foundation Inc. (NASDAQ: FFWM), a financial services company with two wholly-owned operating subsidiaries, First Foundation Advisors (“FFA”) and First Foundation Bank (“FFB”), reported net income of $23.9 million, including $1.1 million of merger related expenses, or $0.51 per diluted share, for the fourth quarter of 2021, compared to net income of $37.2 million, including $0.4 million of merger related expenses, or $0.83 per diluted share, for the third quarter of 2021.  Additionally, First Foundation Inc. announced today that its Board of Directors has approved the payment of a quarterly cash dividend of $0.11 per common share, payable on February 17, 2022 to common shareholders of record as of February 10, 2022.

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Loans

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Loans increased $1.6 billion, or 27.5%, compared to the prior quarter, to $7.4 billion as of December 31, 2021, and increased $2.1 billion, or 39.5%, compared to December 31, 2020.  The increase was impacted by the acquisition of TGR Financial, which added $1.06 billion in gross loans, or $1.05 billion of net loans held for investment after purchase accounting adjustments.  Loan balances were also affected by loan fundings, which in the fourth quarter of 2021 were $1.2 billion, an increase of $411 million, or 51.2%, from the third quarter of 2021 and an increase of $498 million, or 69.6%, from the fourth quarter of 2020.  Contributing to loan originations during the quarter, our C&I division funded $518 million of new commercial loans during the fourth quarter of 2021, of which 55% were adjustable commercial revolving lines of credit. The remaining C&I originations were comprised of $129 million of commercial term loans, $46 million of public finance loans, $32 million of owner occupied commercial real estate loans, and $25 million of equipment finance leases.  We funded no additional PPP loans during the quarter. Loan balances during the fourth quarter of 2021 were also impacted by loan payoffs of $670 million, compared to payoffs of $583 million in the third quarter of 2021 and $534 million in the fourth quarter of 2020. The current pipeline remains very strong going into the first quarter.

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Investment Securities

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Investment securities increased $300 million, or 33.3%, from the prior quarter, to $1.2 billion as of December 31, 2021, and increased $387.1 million, or 47.5%, compared to December 31, 2020. The increases in the balance of investment securities compared to the third quarter of 2021 and fourth quarter of 2020 were primarily driven by securities purchases in the fourth quarter of 2021 and the result of $221.8 million of investment securities, net of the fair value adjustment, acquired in connection with the acquisition of TGR Financial.

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The allowance for credit losses for investments increased by $0.3 million from the prior quarter, to $10.4 million as of December 31, 2021, from $10.1 million as of September 30, 2021, and increased $3.2 million, from $7.2 million as of December 31, 2020. The increase from the fourth quarter of 2020 was a result of the lower interest rate environment and faster than expected prepayments that negatively impacted the projected cash flows on FFB’s interest-only strip securities.   

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Deposits and Borrowings

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Deposits were $8.8 billion as of December 31, 2021, an increase of $2.0 billion, or 28.7%, compared to the prior quarter, and an increase of $2.9 billion, or 49.0%, compared to the fourth quarter of 2020. Deposit growth during the fourth quarter of 2021 compared to the fourth quarter of 2020 was primarily driven by an increase of $1.6 billion, or 98%, in non-interest bearing demand deposits, an increase of $1.4 billion, or 157%, in interest bearing demand deposits, and an increase in money market and savings accounts of $212.9 million, largely attributable to our commercial deposit services division, and retail branches and the acquisition of TGR financial which contributed $2.2 billion of deposits after purchase accounting adjustments.  The increases in deposits were offset by a reduction in CDs of $310.4 million, primarily due to our intentional run-off of higher cost brokered deposits. Noninterest-bearing demand deposits measured 37.2% of total deposits as of December 31, 2021, compared to 43.8% of total deposits as of September 30, 2021, while core deposits increased by $2.0 billion compared to the linked quarter, and measured 99% of total deposits as of December 31, 2021, and 98% of total deposits as of September 30, 2021. Commercial business deposits were 71% of total core deposits as of December 31, 2021.

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Our loan to deposit ratio measured 84.1% as of December 31, 2021, compared to 84.9% as of September 30, 2021 and 89.8% as of December 31, 2020.

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Borrowings were $210.1 million as of December 31, 2021, compared to $12.5 million as of September 30, 2021, and $269.0 million as of December 31, 2020. Borrowings increased compared to the linked quarter due to a $6 million draw on the Company’s line of credit, $25.7 million of subordinated notes, net of the fair market value adjustment, and $165.9 million of repurchase agreements associated with deposit customers both assumed in the TGR Financial acquisition.

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Private Wealth Management and Trust Assets

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AUM at FFA increased by $252 million in the fourth quarter, to $5.7 billion, and was primarily the net result of $80 million of new accounts, $38 million of net withdrawals, and $210 million in portfolio gains. AUA at FFB’s Trust Department increased $48.4 million, to $1.3 billion, during the fourth quarter of 2021.  The Advisory and Trust divisions achieved a combined pre-tax profit margin of 25% in the quarter.

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Net Interest Income

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Net interest income was $62.0 million for the fourth quarter of 2021, compared to $59.2 million in the third quarter of 2021 and $51.7 million in the fourth quarter of 2020.  Interest income from loans increased 3.1% to $58.5 million for the fourth quarter of 2021 compared to $56.8 million in the third quarter in 2021, and increased 13.5% compared to $51.5 million for the fourth quarter of 2020, driven primarily by higher average loan balances. Interest income from investment securities and interest-earning cash was $6.2 million for the fourth quarter of 2021, compared to $5.2 million for the third quarter of 2021, and $6.4 million in the fourth quarter of 2020. The linked quarter change was due primarily to an increase in average investment securities balances.

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Interest expense decreased 2.6% to $2.7 million for the fourth quarter of 2021, compared to $2.8 million for the third quarter of 2021, and decreased 56.1% compared to $6.2 million for the fourth quarter of 2020. The decreases in interest expense were driven primarily by 2.3% and 54.3% decreases in interest expense on deposits compared to the third quarter of 2021 and fourth quarter of 2020, respectively. The decreases in interest expense on deposits were due to decreases in average rates on interest-bearing deposits, which were partially offset by higher average deposit balances.

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Net Interest Margin

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Net interest margin was 3.17% in the fourth quarter of 2021, as compared to 3.07% in the third quarter of 2021, and 3.19% in the fourth quarter of 2020. The NIM increased in the linked quarter due to an increase in interest earning assets. The increase was primarily driven by a six basis point increase in loan yields, from 3.74% in the third quarter of 2021, to 3.80% in the fourth quarter of 2021.

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Noninterest Income

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Noninterest income decreased 54.9% to $13.8 million in the fourth quarter of 2021, compared to $30.7 million in the third quarter of 2021.  Noninterest income during the third quarter of 2021 included an $18.1 million gain on sale of loans related to the securitization of $419 million of multifamily loans during the quarter.  On an adjusted basis, excluding the above mentioned gain during the third quarter of 2021, noninterest income increased $1.3 million, or 10.2%, during the fourth quarter of 2021 compared to the third quarter of 2021.  In addition, noninterest income increased 21.7% compared to $11.4 million in the fourth quarter of 2020.

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Noninterest income during the fourth quarter of 2021 was comprised primarily of $7.5 million of investment advisory fees from Wealth Management, $2.1 million of trust administrative and consulting fees, $2.3 million of loan and servicing fees, $0.5 million of deposit account fees and other income of $1.4 million. Other income increased in the linked quarter, primarily due to a $1.1 million gain on other equity investment in NYDIG, through a valuation adjustment. Income related to Wealth Management increased in the fourth quarter of 2021, when compared to the third quarter of 2021 and the fourth quarter of 2020, due primarily to higher levels of fees earned on AUM.  Loan and servicing fees in the fourth quarter of 2021 decreased compared to the linked quarter and the fourth quarter in 2020 due to lower prepayment fees.  

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Noninterest Expense

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Noninterest expense increased 3.0%, to $39.6 million for the fourth quarter of 2021, compared to $38.4 million for the third quarter of 2021, and increased 26.1%, compared to $31.4 million for the fourth quarter of 2020. Compensation and benefits were $22.9 million in the fourth quarter of 2021, compared to $23.2 million in the third quarter of 2021, and $17.8 million in the fourth quarter of 2020.  The increase from the fourth quarter of 2020 was due to a 14.1% increase in FTE, and higher commission accruals due to strong year-to-date production in wealth management and other divisions. In addition, noninterest expense in the fourth quarter of 2021 included $1.1 million of one-time merger related expenses related to the TGR Financial acquisition.

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Our efficiency ratio for the fourth quarter of 2021 was 51.0%, compared to 41.9% for the third quarter of 2021 and 49.0% in the fourth quarter of 2020. The efficiency ratio for the fourth quarter of 2021 excludes a $1.1 million gain on other equity investments.

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Income Tax Expense

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We recorded an income tax expense of $8.5 million in the fourth quarter of 2021, compared to an income tax expense of $14.7 million in the third quarter of 2021, and an income tax expense of $9.6 million in the fourth quarter of 2020. Our effective tax rate for the fourth quarter of 2021 was 26.2%, compared to 28.3% for the third quarter of 2021, and 30.0% for the fourth quarter of 2020. The lower effective tax rate in the fourth quarter was driven largely by the effect of favorable permanent differences associated with the exercise of executive stock options offset negatively by the capitalization of certain merger expenses for tax purposes.

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Asset Quality

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Total nonperforming assets were $8.3 million as of December 31, 2021, compared to $18.7 million as of September 30, 2021, and $20.6 million as of December 31, 2020. Our ratio of nonperforming assets to total assets was 0.14% as of December 31, 2021, compared to 0.24% as of September 30, 2021, and 0.30% as of December 31, 2020. Total delinquent loans were $4.0 million as of December 31, 2021, compared to $4.3 million as of September 30, 2021 and $2.8 million as of September 30, 2020.

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Our allowance for credit losses for loans was $33.8 million, or 0.49% of total loans, as of December 31, 2021, compared to $21.0 million, or 0.40%, as of September 30, 2021 and $24.2 million, or 0.50%, as of December 31, 2020. The linked quarter increase in the allowance for credit losses for loans was a result of $15.1 million in additional allowance for credit losses associated with the acquisition of TGR Financial, of which $5.6 million was related to Non-PCD loans and $9.5 million was related to PCD loans.  This increase due to the acquisition was offset by a reduction in allowance of $2.4 million related to our legacy loan portfolio, due to an improvement in the economic scenario outlook, offset by an increase in legacy loan balances. Net charge-offs during the fourth quarter of 2021 were $1.1 million, or 0.07% of average loans annualized, compared to net recoveries of $0.1 million, or

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(0.01)% of average loans annualized, for the third quarter of 2021, and $0.2 million of net charge-offs, or 0.02% of average loans annualized, for the fourth quarter of 2020.  

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The ratio of the allowance for credit losses for loans to total nonperforming assets was 405.5% as of December 31, 2021, compared to 112.2% as of September 30, 2021 and 117.3% as of December 31, 2020.

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Capital

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As of December 31, 2021, FFB 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 $1.1 billion as of December 31, 2021, an increase from $766.8 million and $695.7 million as of September 30, 2021 and December 31, 2020, respectively. Our tangible book value per common share was $14.92 as of December 31, 2021, compared to $14.96 as of September 30, 2021, and increased $1.48, compared to $13.44, as of December 31, 2020. The linked quarter decrease in tangible book value per common share was attributable to the closing of TGR Financial and the issuance of 11,352,614 new common shares, in addition to the creation of $128.4 million of additional goodwill and intangibles during the fourth quarter of 2021.

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About First Foundation

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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.  

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Forward-Looking Statements

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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, our dividend policy, 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 the Federal Reserve Board taking actions with respect to 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; 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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Further, statements about the potential effects of the TGR Financial, Inc. (“TGR Financial”) acquisition on our business, financial results, and condition may constitute forward-looking statements and are subject to the risk that the actual effects may differ, possibly materially, from what is reflected in the forward-looking statements due to factors and future developments which are uncertain, unpredictable and in many cases beyond our control, including the risk that the benefits from the acquisition may not be fully realized or may take longer to realize than expected or be more costly to achieve, including as a result of changes in general economic and market conditions, interest and exchange rates, monetary policy, laws and regulations and their enforcement, and the degree of competition in the geographic and business areas in which we and TGR Financial operate; our ability to promptly and effectively integrate the companies’ businesses; reputational risks and the reaction of the companies' customers, employees and counterparties to the acquisition; diversion of management time on integration-related issues; and lower than expected revenues, credit quality deterioration or a reduction in real estate values or a reduction in net earnings.

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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 2020 Annual Report on Form 10-K for the fiscal year ended December 31, 2020 that we filed with the SEC on February 26, 2021, 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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CONSOLIDATED BALANCE SHEETS

(unaudited, except for December 31, 2020)

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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)