First Foundation Inc ( (FFWM) ) has realeased its Q3 earnings. Here is a breakdown of the information First Foundation Inc presented to its investors.
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First Foundation Inc., a financial services company with subsidiaries in banking and advisory services, has released its third-quarter 2024 earnings report. The company faced a challenging quarter, reporting a net loss of $82.2 million primarily due to a significant LOCOM adjustment related to the reclassification of multifamily loans. Despite this, First Foundation raised $228 million in an equity capital raise, reflecting strategic financial repositioning.
The third quarter saw the company reclassify $1.9 billion of its multifamily loan portfolio from loans held for investment to loans held for sale, resulting in a $117.5 million LOCOM adjustment. This contributed heavily to the net loss for the quarter. However, excluding these adjustments, the company posted an adjusted net income of $2.7 million. First Foundation’s net interest income improved to $49.1 million, with a net interest margin increase to 1.50%, indicating a positive trend in core financial performance.
Key highlights from the company’s balance sheet include a total loan balance of $9.9 billion and deposits totaling $10.3 billion as of September 30, 2024. The company maintained a strong liquidity position with $4.3 billion in liquidity resources. Additionally, First Foundation’s risk-based capital ratios improved significantly, reflecting a robust capital position.
Looking forward, the management expresses optimism about the company’s strategy to enhance its balance sheet and improve earnings performance. With a focus on strategic initiatives and capital raises, First Foundation aims to sustain growth and profitability in the evolving economic environment.
