Contrasting First Foundation (FFWM) and Its Rivals

Valuation and Earnings

This table compares First Foundation and its peers gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
First Foundation	$545.12 million	-$92.41 million	-4.41
First Foundation Competitors	$867.14 million	$149.21 million	14.98

First Foundation’s peers have higher revenue and earnings than First Foundation. First Foundation is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.

Profitability

This table compares First Foundation and its peers’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
First Foundation	-13.06%	-0.08%	-0.01%
First Foundation Competitors	17.24%	10.33%	1.19%

Volatility and Risk

First Foundation has a beta of 0.97, meaning that its stock price is 3% less volatile than the S&P 500. Comparatively, First Foundation’s peers have a beta of 0.50, meaning that their average stock price is 50% less volatile than the S&P 500.

Insider and Institutional Ownership

73.1% of First Foundation shares are owned by institutional investors. Comparatively, 54.3% of shares of all “BANKS – SOUTHWEST” companies are owned by institutional investors. 9.5% of First Foundation shares are owned by insiders. Comparatively, 13.3% of shares of all “BANKS – SOUTHWEST” companies are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Summary

First Foundation peers beat First Foundation on 7 of the 9 factors compared.

About First Foundation

First Foundation Inc., through its subsidiaries, provides personal banking, business banking, and private wealth management services in the United States. It operates through two segments, Banking and Wealth Management. The company offers a range of bank deposit products, including personal and business checking accounts, savings accounts, interest-bearing negotiable order of withdrawal accounts, money market accounts, and time certificate of deposits; and loan products consisting of multifamily and single family residential real estate loans, commercial real estate loans, and commercial term loans and line of credits, as well as consumer loans, such as personal installment loans and line of credits, and home equity line of credits. It also provides various specialized services comprising trust services, internet and mobile banking, remote deposit capture services, merchant credit card services, ATM cards, Visa debit cards, and business sweep accounts, as well as insurance brokerage services and equipment financing solutions. In addition, the company offers investment management and financial planning services; treasury management services; advisory and coordination services in the areas of estate planning, retirement planning, and charitable and business ownership issues; and financial, investment, and economic advisory and related services. Further, it provides support services, including the processing and transmission of financial and economic data for charitable organizations. The company operates through a network of 28 branch offices and 3 loan production offices in California, Nevada, Texas, and Hawaii. First Foundation Inc. was founded in 1985 and is headquartered in Dallas, Texas.