First Foundation reports Q4 adjusted EPS (17c), consensus 2c

Reports Q4 adjusted revenue $64.68M, consensus $65.63M. Q4 net interest margin was 1.58% from 1.50% in the previous quarter. Tangible book value per common share was $12.75 from $15.71 at previous quarter end. CEO Thomas Shafer said, “In Q4 we continued executing on the plan intended by our recapitalization earlier in the year with the sale of $489M of our held-for-sale multifamily loan portfolio. Proceeds of the sale were used directly to pay down high-cost funding, and we are focused on selling the remainder of the held-for-sale portfolio this year. These transactions are supporting our goals of reducing our CRE exposure, improving our funding risk profile, and freeing up capacity to further develop other lines of business.” CFO Jamie Britton said, “While we are pleased with the benefits brought by an initial set of short-term rate reductions, we recognize that long-term value will be driven by our ability to transition our balance sheet and build more holistic product offerings for our clients. Continuing to execute against our strategic initiatives was the right way to end a very important year for our company. I am thankful for the efforts of our dedicated team, and I am optimistic about the continued progress we will make in the year ahead.”