Company: FFWM
Filing Date: 2025-04-17
Form Type: DEF 14A
Source: 0001104659-25-036041
Chunk: 62

Company: First Foundation Inc.
Filing Date: 2025-04-17
Form: DEF 14A
Chunk 62
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 objectives: • Design and implement comprehensive compensation programs to retain current, and attract future, NEOs and other key management personnel, and • Align the interests of our NEOs and other key management personnel with the longer-term interests of our stockholders through the use of equity- based compensation tools and tying a significant portion of NEO total compensation to the Company’s financial performance. You should read this section of the Proxy Statement in conjunction with the advisory vote that we are conducting on the compensation of our NEOs. This Compensation Discussion and Analysis contains information that is relevant to your voting decision. The Compensation Discussion and Analysis is organized into the following sections: • Executive Summary • Performance and Pay • Compensation Process and Decisions Executive Summary The Compensation Committee monitors and considers the interests of FFI’s stockholders regarding executive compensation. Our Board, the Compensation Committee, and our executive team continue to review our executive compensation practices and look for opportunities to improve and strengthen its pay for performance objective and alignment with stockholders’ interests. During the past year, FFI took the following actions: • FFI continued to use RSUs as its primary equity incentive award for its NEOs and certain other employees. The Compensation Committee reviewed the percentage of bonus paid in time-based RSUs in 2024. The Compensation Committee intends to revisit the program design, metrics considered, and weighting each year before issuing new grants to continuing executives. • FFI and the Compensation Committee continue to evaluate additional policies that may further bolster or enhance FFI’s commitment to true pay-for-performance. Financial Highlights Financial highlights for 2024 include: • Net loss of $92.4 million, or ($1.41) per fully diluted share for 2024, as compared to net loss of $199.1 million, or ($3.53) per fully diluted share in 2023. 2024’s results were impacted by a $117.5 million lower-of-cost-or-market (“LOCOM”) valuation adjustment associated with the transfer of $1.9 billion in multifamily loans from loans held for investment to loans held for sale in August 2024. Loans held for sale, net of deferred fees, are accounted for at the lower of amortized cost or fair value. In December 2024, $489 million in principal balance of the transferred loans were sold. • On July 8, 2024, the Company raised approximately $228 million of gross proceeds in an equity capital raise with certain investors. For information about the 2024 Capital Raise, see “Election of Directors —