FIRST FOUNDATION INC. (NASDAQ:FFWM) Files An 8-K Results of Operations and Financial ConditionItem 2.02 Results of Operations and Financial Condition
On January 31, 2018, First Foundation Inc. issued a press release reporting its consolidated financial results for the fourth quarter and year ended December 31, 2017.A copy of that press release is attached as Exhibit99.1 to this Current Report on Form8-K and is incorporated herein by reference.
In accordance with General Instruction B.2 of Form 8-K, the information contained in Item 2.02 of this Current Report on Form8-K, including Exhibit99.1, is being furnished and shall not be deemed “filed” for purposes of Section18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liabilities of that Section, and such information and that Exhibit shall not be deemed incorporated by reference in any filing under the Securities Act of1933, as amended.
The press release furnished as Exhibit99.1 to this Current Report on Form8-K may contain forward-looking statements within the meaning of Section27A of the Securities Act and Section21E of the Exchange Act and, as such, may involve known and unknown risks, uncertainties and assumptions.Such forward-looking statements relate to First Foundation’s current expectations and are subject to the limitations and qualifications set forth in First Foundation’s other documents filed with the U.S. Securities and Exchange Commission, including, without limitation, that actual events and/or results may differ materially from those projected in such forward-looking statements.
Item 8.01 Other Events
On January 31, 2018, First Foundation Inc. announced the following consolidated financial results for the fourth quarter and year ended December 31, 2017:
FIRST FOUNDATION INC.
CONSOLIDATED BALANCE SHEETS – Unaudited
(in thousands, except share and per share amounts)
|
December 31, |
December 31, 2016 |
|||
|
ASSETS |
||||
|
Cash and cash equivalents |
$ |
120,394 |
$ |
597,946 |
|
Securities available-for-sale (“AFS”) |
519,364 |
509,578 |
||
|
Loans held for sale |
154,380 |
250,942 |
||
|
Loans, net of deferred fees |
3,663,727 |
2,555,709 |
||
|
Allowance for loan and lease losses (“ALLL”) |
(18,400 |
) |
(15,400 |
) |
|
Net loans |
3,645,327 |
2,540,309 |
||
|
Investment in FHLB stock |
19,060 |
33,750 |
||
|
Deferred taxes |
12,143 |
16,811 |
||
|
Premises and equipment, net |
6,581 |
6,730 |
||
|
Real estate owned (“REO”) |
2,920 |
1,734 |
||
|
Goodwill and intangibles |
33,576 |
2,177 |
||
|
Other assets |
27,440 |
15,426 |
||
|
Total Assets |
$ |
4,541,185 |
$ |
3,975,403 |
|
LIABILITIES AND SHAREHOLDERS’ EQUITY |
||||
|
Liabilities: |
||||
|
Deposits |
$ |
3,443,527 |
$ |
2,426,795 |
|
Borrowings |
678,000 |
1,250,000 |
||
|
Accounts payable and other liabilities |
24,707 |
14,344 |
||
|
Total Liabilities |
4,146,234 |
3,691,139 |
||
|
Commitments and contingencies |
– |
– |
||
|
Shareholders’ Equity |
||||
|
Common Stock, par value $.001: 70,000,000 shares authorized; 38,207,766 and 32,719,632 shares issued and outstanding at December 31, 2017 and December 31, 2016, respectively |
||||
|
Additional paid-in-capital |
314,501 |
232,428 |
||
|
Retained earnings |
85,503 |
57,065 |
||
|
Accumulated other comprehensive income (loss), net of tax |
(5,091 |
) |
(5,245 |
) |
|
Total Shareholders’ Equity |
394,951 |
284,264 |
||
|
Total Liabilities and Shareholders’ Equity |
$ |
4,541,185 |
$ |
3,975,403 |
FIRST FOUNDATION INC.
CONSOLIDATED INCOME STATEMENTS – Unaudited
(in thousands, except share and per share amounts)
|
For the Quarter Ended December 31, |
For the Year Ended December 31, |
|||||||
|
Interest income: |
||||||||
|
Loans |
$ |
33,998 |
$ |
23,718 |
$ |
121,707 |
$ |
85,080 |
|
Securities |
3,227 |
3,358 |
12,407 |
12,781 |
||||
|
FHLB Stock, fed funds sold and deposits |
1,291 |
2,687 |
2,781 |
|||||
|
Total interest income |
37,911 |
28,367 |
136,801 |
100,642 |
||||
|
Interest expense: |
||||||||
|
Deposits |
5,340 |
2,722 |
17,443 |
8,916 |
||||
|
Borrowings |
1,346 |
5,740 |
2,277 |
|||||
|
Total interest expense |
6,686 |
3,363 |
23,183 |
11,193 |
||||
|
Net interest income |
31,225 |
25,004 |
113,618 |
89,449 |
||||
|
Provision for loan losses |
1,800 |
2,762 |
4,681 |
|||||
|
Net interest income after provision for loan losses |
30,325 |
23,204 |
110,856 |
84,768 |
||||
|
Noninterest income: |
||||||||
|
Asset management, consulting and other fees |
7,038 |
6,257 |
26,710 |
24,384 |
||||
|
Gain on sale of loans |
2,717 |
7,029 |
7,812 |
|||||
|
Gain (loss) on capital markets activities |
– |
– |
– |
(1,043 |
) |
|||
|
Other income |
1,621 |
4,980 |
3,407 |
|||||
|
Total noninterest income |
11,376 |
7,586 |
38,719 |
34,560 |
||||
|
Noninterest expense: |
||||||||
|
Compensation and benefits |
13,703 |
11,867 |
56,558 |
48,574 |
||||
|
Occupancy and depreciation |
4,302 |
3,195 |
15,396 |
11,978 |
||||
|
Professional services and marketing costs |
2,572 |
2,017 |
7,687 |
9,825 |
||||
|
Other expenses |
8,084 |
3,112 |
19,335 |
10,617 |
||||
|
Total noninterest expense |
28,661 |
20,191 |
98,976 |
80,994 |
||||
|
Income before taxes on income |
13,040 |
10,599 |
50,599 |
38,334 |
||||
|
Taxes on income |
10,767 |
4,082 |
23,017 |
15,031 |
||||
|
Net income |
$ |
2,273 |
$ |
6,517 |
$ |
27,582 |
$ |
23,303 |
|
Net income per share: |
||||||||
|
Basic |
$ |
0.06 |
$ |
0.20 |
$ |
0.80 |
$ |
0.72 |
|
Diluted |
$ |
0.06 |
$ |
0.19 |
$ |
0.78 |
$ |
0.70 |
|
Shares used in computation: |
||||||||
|
Basic |
36,890,085 |
32,668,318 |
34,482,630 |
32,365,800 |
||||
|
Diluted |
37,500,952 |
33,788,114 |
35,331,059 |
33,471,816 |
||||
Item 9.01 Financial Statements and Exhibits
First Foundation Inc. ExhibitEX-99.1 2 ffwm-ex991_6.htm EX-99.1 – 2017 EARNINGS PRESS RELEASE ffwm-ex991_6.htm Exhibit 99.1 First Foundation Announces 2017 Financial Results • Earnings per share of $0.06 for the fourth quarter of 2017 and $0.78 for the full year • Non-GAAP fully diluted earnings per share of $0.25 for the fourth quarter of 2017 • Revenue growth of 23% in 2017 • Loan growth of 36% and deposit growth of 42% in 2017 IRVINE,…To view the full exhibit click here
About FIRST FOUNDATION INC. (NASDAQ:FFWM)
First Foundation Inc. is a financial services holding company. The Company provides a platform of personalized financial services to high net-worth individuals and their families, family businesses and other affiliated organizations. The Company conducts its operations through its subsidiaries First Foundation Advisors (FFA) and First Foundation Bank (FFB), and First Foundation Insurance Services (FFIS), a subsidiary of FFB. The Company’s segments include Banking; Investment Management, Wealth Planning and Consulting (Wealth Management), and Other. The Banking segment includes the operations of FFB and FFIS, and Wealth Management segment includes the operations of FFA. Its integrated platform provides investment management, wealth planning, consulting, trust, banking products and services, life insurance services and property and casualty insurance services to meet the financial needs of its clients.