First Foundation (FFWM) Q2 2024 earnings summary

Executive summary

• Net income for Q2 2024 was $3.1 million, up from $0.8 million in Q1 2024 and a recovery from a large loss in Q2 2023, with EPS of $0.05.

• Total assets reached $13.7 billion at June 30, 2024, with tangible book value per share at $16.43.

• Completed a $228 million capital raise in July 2024, strengthening the balance sheet and supporting growth.

• The company is executing a strategic plan to reduce multifamily loan concentration, expand C&I lending, and invest in technology and talent.

• Operates as a multi-diversified regional financial services company with a focus on affluent, high-growth markets in five states.

Financial highlights

• Net interest income for Q2 2024 was $43.8 million, with interest income at $150.9 million and net interest margin at 1.36%.

• Noninterest income rose to $13.7 million, with noninterest expense at $55.6 million.

• Pre-tax, pre-provision net revenue was $1.9 million, up from $460,000 in the prior quarter.

• Efficiency ratio improved to 96.1% from 98.4% in Q1 2024.

• Adjusted ROAA was 0.10% and ROATCE was 1.5% for Q2 2024.

Outlook and guidance

• Management targets ROAA of 0.90–1.00% and ROTCE of 10–12% by end of 2026, with CRE concentration expected to fall below 400%.

• Strategic focus on reducing multifamily loan concentration, expanding C&I lending, and geographic growth in Texas, Florida, and California.

• Recent capital raise supports balance sheet repositioning, cost containment, and investments in core business lines.