First Foundation Inc. (FFWM) Reports Fourth‑Quarter 2025 Results: Earnings Miss, Revenue Below Expectations

First Foundation Inc., a U.S.‑based banking and financial services firm headquartered in Irvine, California, announced its fourth‑quarter and full‑year 2025 results on January 29 2026. The company’s two wholly‑owned operating subsidiaries—First Foundation Advisors (FFA) and First Foundation Bank (FFB)—were the primary contributors to the reported figures.

Earnings Per Share Fall Short of Consensus

The bank reported an earnings‑per‑share (EPS) figure of –$0.06 for the quarter, missing the analyst consensus of $0.00 by $0.06. This shortfall was driven by a decline in loan portfolio performance and a modest uptick in operating costs. The company’s forward‑looking guidance, however, indicates a gradual improvement in credit quality as its risk‑adjusted loan growth continues to accelerate.

Revenue Slips Significantly

Revenue for the quarter was $58.4 million, representing a 65.5 % decline versus $169.1 million reported in the same period of 2024. Analysts had expected $58.4 million, but the actual figure fell short, reflecting a contraction in fee‑based services and lower transaction volumes amid a tightening credit environment. For the full fiscal year, First Foundation projects $244.2 million in revenue—well below the $664.3 million posted in 2024—underscoring a shift toward a more conservative growth trajectory.

Net Loss and Loss Per Share

The bank recorded a net loss of $1.76 million for the year, a slight improvement from the $1.41 million loss reported in the previous fiscal year. Loss per share for the year is projected at –$1.76, compared with –$1.41 for FY 2024. The loss per share margin is attributed to higher provisions for loan losses, which have increased in response to deteriorating credit conditions in certain market segments.

Market Reaction

FFWM’s stock closed at $6.01 on January 27, 2026, positioned below its 52‑week high of $6.535 (January 21, 2026) and above its 52‑week low of $4.415 (April 8, 2025). The price‑earnings ratio stands at –3.07, reflecting the current negative earnings environment. Despite the earnings miss, the market has responded cautiously, with the stock settling near the lower end of its recent trading range, suggesting that investors are digesting the company’s strategic pivot toward a more disciplined risk profile.

Outlook

Analysts remain cautiously optimistic about First Foundation’s long‑term trajectory. The firm’s focus on strengthening its loan portfolio, reducing non‑performing assets, and expanding fee‑based services positions it to recover in a more favorable interest‑rate climate. The upcoming earnings conference call on February 5, 2026, will likely provide further insights into the bank’s capital adequacy, asset‑quality initiatives, and guidance for the third quarter of fiscal 2026.

Key Takeaways

  • EPS: –$0.06 (miss by $0.06)
  • Q4 Revenue: $58.4 million (–65.5 % YoY)
  • Full‑Year Revenue: $244.2 million (–63.1 % YoY)
  • Net Loss: $1.76 million (slight improvement)
  • Stock Price: $6.01 (near 52‑week low)
  • P/E: –3.07 (negative earnings)

Investors should monitor First Foundation’s risk‑management initiatives and fee‑generation strategies as the bank seeks to navigate the current economic headwinds and set the stage for sustainable growth in the coming quarters.