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First Foundation Inc. (FFWM-6.87%) has submitted its 10-Q filing for the quarterly period ended September 30, 2024.
The filing details a net loss of $82.2 million for the third quarter of 2024, compared to net income of $2.2 million in the same quarter of the previous year. The loss is primarily attributed to a $117.5 million Lower of Cost or Market (LOCOM) adjustment related to the reclassification of $1.9 billion in multifamily loans from held for investment to held for sale.
Net interest income decreased to $49.1 million from $54.1 million in the previous year, despite an increase in interest income to $157.2 million from $144.8 million. The increase in interest expense to $108.0 million from $92.7 million contributed to this decline.
The provision for credit losses was $0.3 million, compared to a reversal of $2.0 million in the previous year. This reflects adjustments for increased risks in the multifamily portfolio and other segments.
Noninterest income, excluding the LOCOM adjustment, was $11.9 million, consistent with the previous year. However, including the adjustment, noninterest income was reported at negative $112.9 million.
Noninterest expense decreased to $60.2 million from $64.2 million, primarily due to reductions in customer service costs.
Total assets were reported at $13.4 billion, a slight increase from $13.3 billion at the end of 2023. This includes $8.1 billion in loans held for investment and $1.8 billion in loans held for sale.
Total liabilities decreased to $12.3 billion from $12.4 billion, with deposits at $10.3 billion, down from $10.7 billion at the end of 2023.
Shareholders' equity increased to $1.1 billion from $925.3 million, largely due to a capital raise in July 2024, which generated net proceeds of $214.5 million.
The filing also discusses the company's liquidity position, noting a decrease in cash and cash equivalents by $220.2 million, and outlines its borrowing capacity, including $3.0 billion in unused credit lines.
First Foundation Inc. remains compliant with regulatory capital requirements, with the bank's capital ratios exceeding the minimums necessary to qualify as a well-capitalized institution.
The report concludes with a discussion on interest rate risk management, noting that the company is positioned to manage potential changes in interest rates effectively.
This content was summarized by generative artificial intelligence using public filings retrieved from SEC.gov. The original data was derived from the First Foundation Inc. quarterly 10-Q report dated November 8, 2024. To report an error, please email earnings@qz.com.