First Foundation Inc. reported a net loss of $146.3 million for the quarter ended September 30, 2025, translating to a loss of $1.78 per share. The loss follows a net loss of $7.7 million in Q2 2025 and a net income of $6.9 million in Q1 2025, marking a reversal from earlier profitability.
Revenue for the quarter was $63.6 million, exceeding analyst estimates of $61.78 million. The company attributed the large loss to a $65.0 million provision for credit losses and a $94.7 million valuation allowance against its deferred tax asset balance. These charges reflect concerns about potential credit risk and the realizability of tax assets.
The net interest margin declined to 1.60% in Q3 2025 from 1.68% in Q2 2025, while the overall loan balance fell to $7.8 billion from $8.0 billion. Deposits rose to $9.3 billion, driven by wholesale and corporate deposits, and digital banking deposits surpassed $1 billion for the first time.
Management noted that the company is working to reduce its commercial real‑estate concentration and grow its commercial‑industrial loan portfolio, which is expected to increase the allowance for credit losses over time. The firm also highlighted efforts to fully leverage markets, improve core funding, and accelerate growth in its First Foundation Advisors and private banking units.
The company canceled its Q3 earnings webcast and conference call that was originally scheduled for October 30, 2025, and later announced an all‑stock merger with FirstSun Capital Bancorp on October 27, 2025.
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