First Foundation Investor Presentation Deck
Our Multifamily Expertise
The Bank has been originating multifamily loans since 2008 with zero losses to date on its portfolio.
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Product Overview - Essential Housing Focus
Primary focus is on small balance (average size of $3.3 million) loans on non-luxury
Essential Housing apartment stock
Average property has 22 units
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Approx. 68% of the $2.4B originations in 2022 were rent controlled and on
average 14% below market, providing potential upside in rents if units turn over
Loans are generally fixed for 3-,5-,7- and 10-year periods
Weighted average life of portfolio is 5 (¹) years
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Buildings tend to be older and smaller in size with over 60% of properties built
between 1950-1980 catering towards at or below median income earners
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30-year maturity with 30-year amortization
Conservative Underwriting
Conservative underwriting to the lower of in-place rents or market and the higher of
market or actual vacancy and expenses
No credit is given for future or pro forma figures for rents
Loan amounts are underwritten to DSCRs using a qualifying rate that is higher than the
initial rate for 3- and 5-year fixed loans
7 and 10 year fixed are underwritten to the initial start rate
Interest only options for lower LTV and higher DSCR properties with strong sponsorship
All IO loans underwritten to a fully amortizing DSCR
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FIRST FOUNDATION
Copyright © 2023 First Foundation Inc. All Rights Reserved
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Sponsors are required to meet minimum liquidity requirements of 6-12 months principal,
interest, taxes and insurance, and a minimum of 10% of the loan amount
1)
WA Life per Moody's Analytics
CMM/Impairment Studio reporting as of
09.30.2023
Geographic Exposure
Multifamily Loans 3Q23
($ in millions)
California, $4,586, 87%
Alameda
Santa Clara
Maricopa
Sacramento
Bexar
San Mateo
SUBTOTAL
Portfolio Total
$5,240
Total
Loans
Exposure by Top 10 Counties
Los Angeles
Orange
San Diego
San Francisco
Vast majority of the
portfolio is in rent
controlled markets
within California
Florida, $97, 2%
Texas, $226, 4%
Hawaii, $2,0%
Nevada, $35, 1%
Other, $294, 6%
(000s)
2,681,261
445,175
385,968
250,560
224,918
149,880
146,157
104,297
96,804
80,284
%
51.17%
8.50%
7.37%
4.78%
4.29%
2.86%
2.79%
1.99%
1.85%
1.53%
4,565,305 87.1%
5,240,385 100.0%
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