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Exhibit 99.1

FIRST FOUNDATION INC. REPORTS FIRST QUARTER 2023 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 $8.5 million, or $0.15 per diluted share for the first quarter of 2023, compared to net income of $17.4 million or $0.31 per diluted share for the fourth quarter of 2022.  Total revenues were $70.5 million for the quarter, compared to $81.9 million for the fourth quarter of 2022.  Additionally, First Foundation Inc. announced today that its Board of Directors has approved the payment of a quarterly cash dividend of $0.02 per common share, payable on May 19, 2023, to common shareholders of record as of May 8, 2023.

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Loans

Loan balances remained flat at $10.7 million compared to the prior quarter and increased 44.2% compared to the first quarter of 2022.  Loan fundings totaled $481 million, offset by loan payoffs of $535 million in the quarter.  Commercial and industrial (“C&I”) loans accounted for 89% of total fundings for the quarter, consisting primarily of commercial revolving lines of credit, commercial term loans, and equipment financing.  C&I loans largely consist of loans to small to moderate size businesses and professional firms in our market areas, who typically utilize more than one element of our platform, with almost all such clients using our deposit products and services.  

Loan portfolio average yield increased to 4.54% in the quarter compared to 4.34% and 3.84% in the fourth and first quarters of 2022, respectively.  Average yields on new loan fundings were 7.40% in the quarter compared to 5.72% and 3.36% in the fourth and first quarters of 2022, respectively.

Investment Securities

Investment securities were $1.1 billion, as of March 31, 2023, unchanged compared to the prior quarter, and down $0.1 million compared to March 31, 2022.

The allowance for credit losses for investments was $12.3 million for the quarter, compared to $11.4 million for the prior quarter and $10.7 million for first quarter of 2022.  The increase from the prior quarter was primarily due to $973 thousand in additional allowances for credit losses recorded on the portfolio offset by $125 thousand in reduction to the allowance resulting from changes in expected cash flows on interest-only strip securities due to changes  in the interest rate environment and prepayment speeds. Unrealized losses (tax-effected) on the available-for-sale portfolio were $14.8 million as of March 31, 2023, compared to $11.0 million as of December 31, 2022.  Unrecognized losses (tax-effected) on the held-to-maturity portfolio were $56.7 million as of March 31, 2023, compared to $63.3 million as of December 31, 2022.  Combined losses (tax-effected) on the available-for-sale and held-to-maturity portfolios were $71.5 million as of March 31, 2023, compared to $74.3 million as of December 31, 2022.

Investment securities portfolio average yield increased to 2.73% in the first quarter of 2023 compared to 2.50% and 1.99% in the fourth and first quarters of 2022, respectively.

Deposits and Borrowings

Deposits were $10.1 billion as of March 31, 2023, compared to $10.4 billion and $9.0 billion as of December 31, 2022 and March 31, 2022, respectively.  The 3% decrease in deposits at the end of the first quarter of 2023 compared to the previous quarter was the result of outflows experienced after the mid-March closures of Silicon Valley Bank and Signature Bank.  FFB is now back to a normal deposit inflow/outflow pattern and has been since the end of March.   Noninterest-bearing demand deposits measured 23% of total deposits as of March 31, 2023, compared to 26% of total deposits as of December 31, 2022.  Certificates of deposit accounted for 24% of total deposits as of March 31, 2023, compared to 18% as of December 31, 2022.  The digital banking channel continued to grow as a source of new depository accounts, accounting for $853 million or 8% of total deposits as of March 31, 2023.  Launched in 2019, the digital banking platform now accounts for 90% of new client accounts, with the benefit of having low costs to obtain and service and strong retention experience.  Brokered deposits accounted for 18.8% of total deposits as of March 31, 2023, compared to 13.3% at December 31, 2022.  

Cost of deposits increased to 2.38% for the first quarter of 2023 compared to 1.47% and 0.15% for the fourth and first quarters of 2022, respectively.

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Insured deposits accounted for approximately 85% of total deposits as of March 31, 2023.

Our loan to deposit ratio measured 106.1% as of March 31, 2023, compared to 103.5% as of December 31, 2022.  The loan to deposit ratio measured 100.3% for the first quarter 2023 when calculated based on the average balances of loans and deposits for the quarter opposed to measuring such balances as of the last day of the quarter.  This is more reflective of the actual management of the portfolios during the entire quarter, particularly in the wake of the banking industry events that followed the announced closure of Silicon Valley Bank and Signature Bank in mid-March, 2023.

Borrowings were $2.3 billion as of March 31, 2023, compared to $1.4 billion as of December 31, 2022.   The increase in borrowings compared to the prior quarter was primarily due to the addition of $1.2 billion in FHLB advances offset by $200 million paydown of fed funds balances outstanding.  Average borrowings outstanding for the quarter ended March 31, 2023 were $1.4 billion compared to $1.5 billion for the quarter ended December 31, 2022.  The additional borrowings for the quarter-ended March 31, 2023 were utilized to increase on-balance sheet liquidity, notably in the wake of banking industry events that followed the announced closure of Silicon Valley Bank and Signature Bank in mid-March 2023.

Private Wealth Management and Trust Assets

AUM was $5.2 billion as of March 31, 2023, compared to $5.0 billion as of December 31, 2022.  The net change in AUM balance of $0.2 billion is comprised of the following:  $86 million of new accounts; $120 million of net withdrawals; and $277 million of performance gains.  AUA at FFB’s Trust Department was unchanged at $1.3 billion as of March 31, 2023, compared to December 31, 2022.

Net Interest Income and Net Interest Margin (“NIM”)

Net interest income was $58.8 million for the first quarter of 2023, compared to $74.7 million and $74.5 million for the fourth and first quarters of 2022, respectively.  Interest income increased to $137 million for the first quarter of 2023 compared to $126.0 million and $79.1 million for the fourth and first quarters of 2022, respectively.   The increase in interest income was due to increases in both average interest-earning asset balances as well as average yields earned on such balances.  Average interest-earning asset balances increased to $12.7 billion for the quarter ended March 31, 2023, compared to $12.2 billion and $9.9 billion for the quarters ended December 31, and March 31, 2022, respectively.  Yields on interest-earning assets averaged 4.32% for the first quarter of 2023, compared to 4.12% and 3.19% for the fourth and first quarters of 2022, respectively.

Interest expense was $78.2 million for the first quarter of 2023, compared to $51.3 million and $4.7 million for the fourth and first quarters of 2022, respectively.  The increase in interest expense was due to increases in both average interest-bearing liability balances as well as average rates paid on such balances.  Average interest-bearing liability balances, consisting of interest-bearing deposits and borrowings, increased to $9.3 billion for the quarter ended March 31, 2023, compared to $8.1 billion and $5.9 billion for the quarters ended December 31, and March 31, 2022, respectively.  Rates on interest-bearing liability balances averaged 3.41% for the first quarter of 2023, compared to 2.52% and 0.32% for the fourth and first quarters of 2022, respectively.

The 0.20% increase in average yield earned on interest-earning assets was offset by an 0.89% increase in average rate paid on interest-bearing liability balances, resulting in a contraction of net interest margin (“NIM”) for the quarter ended March 31, 2023.  NIM was 1.83% for the first quarter of 2023 compared to 2.45% and 3.0% for the fourth and first quarters of 2022, respectively.    

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Noninterest Income

Noninterest income was $11.7 million in the first quarter of 2023, compared to $7.2 million and $15.4 million in the fourth and first quarters of 2022, respectively.  Noninterest income in the fourth quarter 2022 included a $6.25 million valuation loss adjustment on our equity investment in NYDIG.  

Noninterest income during the first quarter of 2023 was comprised of $7.1 million in investment advisory fees from Wealth Management, $1.7 million in trust administrative and consulting fees, $1.9 million in loan and servicing fees, $0.5 million of deposit account fees and other income of $0.5 million.  

Noninterest Expense

Noninterest expense was $59.3 million in the first quarter of 2023, compared to $59.8 million and $47.6 million in the fourth and first quarters of 2022, respectively. Compensation and benefits were $25.3 million in the first quarter of 2023, compared to $23.2 million and $29.8 million in the fourth and first quarters of 2022 respectively.  Noninterest expense in the first quarter of 2023 includes a $1.1 million reversal of stock compensation expense related to forfeited RSUs.  Average FTEs totaled 672 in the first quarter, compared to 727 in the prior quarter, a decrease of 7.5%.   The reduction in staffing occurred in two rounds within the first quarter and largely impacted those employees in the lending and credit areas, as we continued our efforts to optimize the workforce in the face of slowing loan growth.  First quarter compensation and benefits expense includes approximately $468 thousand in severance costs associated with the staffing reductions;  the full impact of the cost savings is expected to be realized beginning in the next quarter.  

Customer service costs were $16.7 million in the first quarter of 2023, compared to $18.2 million in the fourth quarter of 2022, a decrease of 8.3%.  The decrease in customer service costs was due to a decrease in the amount of depository account balances receiving earnings credit on such accounts.  Deferred loan costs which are shown as a direct offset to compensation expense decreased in the first quarter of 2023, compared to the fourth quarter of 2022, due to the decrease in loan originations during the quarter.  

Our efficiency ratio for the first quarter of 2023 was 84.5%, compared to 70.9% for the fourth quarter of 2022.  The first quarter increase in the efficiency ratio is largely attributable to the aforementioned reduction in net interest income during the quarter, as the ratio is a measure of noninterest expense to revenue (net interest income plus noninterest income) on an adjusted basis.

Income Tax Expense

We recorded income tax expense of $2.2 million in the first quarter of 2023, compared to income tax expense of $3.6 million in the fourth quarter of 2022. Our effective tax rate for the first quarter of 2023 was 20.6%, compared to 17.1% for the fourth quarter of 2022.  The decrease in income tax expense was predominantly due to a decrease in pretax income.

Asset Quality

Total nonperforming assets were $17.4 million as of March 31, 2023, compared to $16.5 million as of December 31, 2022.  Our ratio of nonperforming assets to total assets was unchanged at 0.13% as of March 31, 2023, and December 31, 2022, respectively. Total delinquent loans were $37.1 million or 0.45% of total loans as of March 31, 2023, compared to $20.8 million or 0.29% of total loans as of December 31, 2022.  

Our allowance for credit losses for loans was $31.1 million, or 0.29% of total loans held for investment, as of March 31, 2023, compared to $33.7 million, or 0.31%, as of December 31, 2022.  The decrease in the allowance for credit

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losses for loans of $2.6 million was primarily due to the release of specific reserves related to purchase credit deteriorated loans from prior acquisitions. Net charge-offs during the first quarter of 2023 were $1.7 million or 0.06% of average loan balances, compared to net charge-offs of $268 thousand or 0.01% of average loan balances for the fourth quarter of 2022.

The ratio of the allowance for credit losses for loans to total past due and nonaccrual loans was 64.4% as of March 31, 2023, compared to 108.5% as of December 31, 2022.

Capital

As of March 31, 2023, 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 $1.13 billion as of March 31, 2023, unchanged from the previous quarter.  Our tangible book value per common share was $16.17 as of March 31, 2023, compared to $16.20 as of December 31, 2022.

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The Company will host a conference call at 8:00 a.m. PT / 11:00 a.m. ET on April 27, 2023, to discuss its financial results. Analysts and investors may participate in the question-and-answer session. The call will be broadcast live over the Internet and can be accessed by visiting First Foundation’s website and clicking on “Investor Relations” and “Events & Presentations” https://investor.ff-inc.com/events-and-presentations/default.aspx.  The conference call can be accessed by telephone at (800) 267-6316 using conference ID FFWMQ422.  It is recommended that participants dial into the conference call approximately ten minutes prior to the call. For those who are unable to participate during the live call, an archive of the call will be available for replay.

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 quality and quantity of our deposits; adverse developments in the financial services industry generally such as the recent bank failures and any related impact on depositor behavior or investor sentiment; risks related to the sufficiency of liquidity; 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; negative impacts of news or analyst reports about us or the financial services industry; risks associated with proxy contests and other actions of activist stockholders, which may cause us to incur significant expense, cause disruption to our business and impact our

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stock price; 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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CONSOLIDATED BALANCE SHEETS

(unaudited)

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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)

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LOAN AND DEPOSIT BALANCES

(unaudited)

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CONSOLIDATED LOAN FUNDING AND YIELDS

(unaudited)