Jackson Laurent's questions to First Foundation (FFWM) leadership • Q1 2025
Question
Representing Stephens, Inc., Jackson Laurent asked for a quantification of the seasonal impact on Q1 compensation expense and its expected trend for the year. He also inquired about competitive pressures on new C&I loan pricing and which credit buckets management is monitoring most closely.
Answer
Executive Jamie Britton quantified the seasonal impact on compensation expense at approximately $1.5 million, noting it will trend down through the year while the company continues to invest in growth-oriented hires. CEO Thomas Shafer described C&I loan competition as present but noted that recent fundings were more deal-centric than indicative of a broader pricing trend. He added that while the CRE portfolio is performing well, it is undergoing rigorous stress testing for a higher interest rate environment.