Net interest income contracted by 23.1% year-over-year to $39.4 million in 2025Q4, reflecting persistent margin compression within the 0.3% to 0.4% range.
| Metric | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 | Dec'11 |
|---|
| Net Interest Income | 187.4M | 182.64M | 202.31M | 318.69M | 233.28M | 196.64M | 169.95M | 155.61M | 113.62M | 89.45M | 58.19M | 42.81M | 35.67M | 27.73M | -90K |
| NII Growth % | 2.61% | -9.72% | -36.52% | 36.61% | 18.63% | 15.7% | 9.22% | 36.96% | 27.02% | 53.72% | 35.91% | 20.01% | 28.65% | 30910% | - |
| Net Interest Margin % | 1.57% | 1.44% | 1.52% | 2.45% | 2.29% | 2.83% | 2.69% | 2.66% | 2.5% | 2.25% | 2.24% | 3.16% | 3.44% | 3.34% | -0.02% |
| Interest Income | 540.99M | 611M | 573.69M | 403.88M | 247.22M | 243.89M | 248.76M | 207.31M | 136.8M | 100.64M | 64.47M | 47.4M | 39.18M | 30.87M | 0 |
| Interest Expense | 353.59M | 428.35M | 371.39M | 85.19M | 13.93M | 47.25M | 78.81M | 51.7M | 23.18M | 11.19M | 6.28M | 4.58M | 3.51M | 3.15M | 90K |
| Loan Loss Provision | 64.31M | 20.7M | -482K | 532K | 3.87M | 6.75M | 2.64M | 4.22M | 2.76M | 4.68M | 2.67M | 235K | 2.4M | 2.06M | 40.63M |
| Non-Interest Income | 47.37M | -129.46M | -27.45M | 10.06M | 61.68M | 47.2M | 23.92M | 20.69M | 31.68M | 32.88M | 28.77M | 24.75M | 19.82M | 16.62M | 40.72M |
| Non-Interest Income % | 8.05% | -26.88% | -5.03% | 2.43% | 19.97% | 16.22% | 8.77% | 9.08% | 18.8% | 24.63% | 30.86% | 34.3% | 33.6% | 34.99% | 100% |
| Total Revenue | 588.36M | 481.54M | 546.24M | 413.93M | 308.9M | 291.09M | 272.68M | 228M | 168.48M | 133.52M | 93.24M | 72.15M | 59.01M | 47.49M | 40.72M |
| Revenue Growth % | 22.18% | -11.84% | 31.96% | 34% | 6.12% | 6.75% | 19.6% | 35.33% | 26.18% | 43.2% | 29.24% | 22.27% | 24.24% | 16.63% | - |
| Non-Interest Expense | 242.02M | 169.87M | 375.4M | 178.41M | 139.31M | 118.33M | 111.74M | 112M | 91.94M | 79.31M | 61.46M | 52.51M | 43.62M | 34.48M | 5.34M |
| Efficiency Ratio | 41.13% | 35.28% | 68.72% | 43.1% | 45.1% | 40.65% | 40.98% | 49.12% | 54.57% | 59.4% | 65.91% | 72.78% | 73.93% | 72.59% | 13.11% |
| Operating Income | -71.55M | -137.38M | -200.06M | 149.8M | 151.78M | 118.77M | 79.5M | 60.09M | 50.6M | 38.33M | 22.83M | 14.82M | 9.48M | 7.81M | 9.1M |
| Operating Margin % | -12.16% | -28.53% | -36.63% | 36.19% | 49.14% | 40.8% | 29.15% | 26.35% | 30.03% | 28.71% | 24.49% | 20.54% | 16.07% | 16.44% | 22.34% |
| Operating Income Growth % | 47.92% | 31.33% | -233.55% | -1.31% | 27.8% | 49.39% | 32.31% | 18.75% | 32% | 67.9% | 54.05% | 56.32% | 21.43% | -14.18% | - |
| Pretax Income | -71.55M | -137.38M | -200.06M | 149.8M | 151.78M | 118.77M | 79.5M | 60.09M | 50.6M | 38.33M | 22.83M | 14.82M | 9.48M | 7.81M | 9.1M |
| Pretax Margin % | -12.16% | -28.53% | -36.63% | 36.19% | 49.14% | 40.8% | 29.15% | 26.35% | 30.03% | 28.71% | 24.49% | 20.54% | 16.07% | 16.44% | 22.34% |
| Income Tax | 83.61M | -44.97M | -1M | 39.29M | 42.27M | 34.4M | 23.26M | 17.13M | 23.02M | 15.03M | 9.45M | 6.43M | 1.63M | 2.01M | 0 |
| Effective Tax Rate % | -116.87% | 32.74% | 0.5% | 26.23% | 27.85% | 28.96% | 29.26% | 28.51% | 45.49% | 39.21% | 41.41% | 43.36% | 17.19% | 25.7% | 0% |
| Net Income | -155.16M | -92.41M | -199.06M | 110.51M | 109.51M | 84.37M | 56.24M | 42.96M | 27.58M | 23.3M | 13.38M | 8.39M | 7.85M | 5.8M | 9.1M |
| Net Margin % | -26.37% | -19.19% | -36.44% | 26.7% | 35.45% | 28.98% | 20.62% | 18.84% | 16.37% | 17.45% | 14.35% | 11.63% | 13.31% | 12.21% | 22.34% |
| Net Income Growth % | -67.91% | 53.58% | -280.13% | 0.91% | 29.8% | 50.02% | 30.92% | 55.75% | 18.36% | 74.19% | 59.38% | 6.92% | 35.34% | -36.24% | - |
| Net Income (Continuing) | -155.16M | -92.41M | -199.06M | 110.51M | 109.51M | 84.37M | 56.24M | 42.96M | 27.58M | 23.3M | 13.38M | 8.39M | 7.85M | 5.8M | 9.1M |
| EPS (Diluted) | -1.88 | -1.41 | -3.53 | 1.96 | 2.41 | 1.88 | 1.25 | 1.01 | 0.78 | 0.70 | 0.58 | 0.51 | 0.39 | 0.29 | 0.46 |
| EPS Growth % | -33.33% | 60.06% | -280.1% | -18.67% | 28.19% | 50.4% | 23.76% | 29.49% | 11.43% | 20.69% | 13.73% | 30.77% | 34.48% | -36.96% | - |
| EPS (Basic) | -1.88 | -1.41 | -3.53 | 1.96 | 2.42 | 1.89 | 1.26 | 1.02 | 0.80 | 0.72 | 0.60 | 0.54 | 0.39 | 0.29 | 0.46 |
| Diluted Shares Outstanding | 82.51M | 65.6M | 56.43M | 56.49M | 44.9M | 44.9M | 44.91M | 42.57M | 35.33M | 33.47M | 23.15M | 16.33M | 19.91M | 19.91M | 19.91M |
Asset-Liability Duration Mismatch
According to the latest quarterly filings, First Foundation's net interest income declined to $39.4 million in 2025Q4, representing a significant 23.1% year-over-year contraction that highlights the bank's inability to effectively manage rising deposit costs against a legacy portfolio of fixed-rate multifamily real estate loans.
The persistent decline in NII suggests that the bank's funding costs are repricing significantly faster than its asset base. This dynamic implies that the institution may be trapped in a structural mismatch where the yield on its long-duration loan book fails to compensate for the current interest rate environment.
Based on reported financial data, the net interest margin has remained stagnant at a razor-thin 0.3% to 0.4% range over the last ten quarters, indicating that the bank's earning power is severely constrained by its current asset-liability structure and high cost of interest-bearing deposits.
A NIM of this magnitude is exceptionally low for a regional bank and suggests that the core banking business is currently failing to generate sufficient spread to cover operational overhead. Investors should monitor whether management can successfully pivot the balance sheet composition to improve these margins in future periods.
As evidenced by the quarterly income statements, the efficiency ratio has fluctuated wildly, reaching a peak of 126.5% in 2024Q3, which underscores the bank's struggle to maintain a sustainable cost structure while navigating significant revenue volatility and negative operating income across multiple recent reporting periods.
The inability to maintain a stable efficiency ratio suggests that the bank's fixed-cost base, particularly personnel and branch infrastructure, is not scaling appropriately with revenue. This lack of operating leverage appears to be a primary driver of the bank's recent net losses and warrants further investigation into cost-rationalization efforts.
Financial statements reveal a massive $65.0 million provision for loan losses in 2025Q3, a figure that stands in stark contrast to other periods and suggests that the bank is actively grappling with potential credit deterioration within its concentrated multifamily real estate loan portfolio.
The erratic nature of these provisions may indicate that the bank is responding to lagging indicators of credit stress rather than proactive risk management. Such large, episodic charges imply that the bank's capital adequacy could be at risk if the underlying collateral values continue to face downward pressure.
Quick answers to the most common questions about buying FFWM stock.
First Foundation Inc. (FFWM) reported a net loss of $155.2M for the fiscal year ending 2025.
First Foundation Inc. (FFWM) reported an operating income of $-71.5M, resulting in an operating profit margin of -12.2%. This margin reflects the operational efficiency of the business before interest and taxes.
First Foundation Inc. (FFWM) generated $170.5M in gross profit for the year, representing a gross profit margin of 29.0%. This demonstrates the company's core pricing power and production efficiency.