- Earnings per share: $0.39 for the quarter, $0.91 for year-to-date
- 18% increase in third quarter earnings compared to 2018 third quarter
- Loan production of $486 million for the third quarter, $1.4 billion year to date
- Tangible book value per share increased to $11.35 at September 30, 2019
IRVINE, Calif.–(BUSINESS WIRE)–First Foundation Inc. (NASDAQ: FFWM), a financial services company with two wholly-owned operating subsidiaries, First Foundation Advisors (“FFA”) and First Foundation Bank (“FFB”), announced today its financial results for the quarter and nine months ended September 30, 2019. As we present certain non-GAAP measures in this release, the reader should refer to the non-GAAP reconciliations set forth below under the section “Use of Non-GAAP Financial Measures.”
“We experienced another strong quarter from all segments of our business,” said Scott F. Kavanaugh, CEO. “Our banking, wealth management, and trust each saw solid growth. And I am particularly proud of our ability to complete the securitization of $551 million in loans, our fourth such deal to date, which total $1.5 billion. This has been part of our strategic plan for a few years now, and it allows us to continue to expand our lending activities while maintaining strong credit quality.”
Highlights
Financial Results:
-
2019 third quarter compared to 2018 third quarter:
- Total revenues were $57.1 million, an increase of 4%
- Net interest income was $43.1 million
- Income before taxes was $24.2 million, an increase of 16%
- Earnings were $17.4 million, an increase of 18%
- Earnings per fully diluted share were $0.39, compared to $0.33 in 2018
-
2019 year to date compared to 2018 year-to-date:
- Total revenues were $157.6 million, an increase of 12%
- Net interest income was $126.1 million, an increase of 10%
- Income before taxes was $57.8 million, an increase of 44%
- Earnings were $41.0 million, an increase of 42%
- Earnings per fully diluted share were $0.91, compared to $0.69 in 2018
-
2019 Financial ratios:
- Return on average tangible equity of 14.0% for the quarter, 11.4% for year-to-date
- Return on average assets of 1.10% for the quarter, 0.90% for year-to-date
- Efficiency ratio of 59.5% for the quarter, 63.1% for year-to-date
- Total tangible shareholders’ equity of $507 million, tangible book value of $11.35 per share, and tangible common equity to tangible assets of 8.09%, in each case, as of September 30, 2019
Other Activity:
- Loan originations totaled $486 million for the quarter, $1.4 billion for year-to-date
- Deposits increased by $638 million for the first nine months of 2019
- Completed sale of $551 million of loans through a securitization, recognizing $4.2 million gain
- Purchased $576 million of securities from the securitization with a weighted average yield of 2.46%
- Sold $284 million of lower yielding securities with a weighted average yield of 2.09%
- Declared and paid cash dividend of $0.05 per share in third quarter, $0.15 per share year-to-date
- Net interest margin (“NIM”): 2.89% for the third quarter; 2.87% for year-to-date
- For interest rate risk management purposes, we borrowed $500 million at a one year fixed rate of 1.77%
- Assets under management (“AUM”) at FFA increased by $309 million year-to-date
- AUM for our Trust operations increased by $97 million year-to-date, or 13%, with an increase in year-to-date trust fees of 35%
“It was another solid quarter for the Bank,” said David DePillo, President. “Consistent with prior quarters we continue to diversify our originations, as evidenced by 31% of our originations coming from commercial lending, which has resulted in a weighted average interest rate on our originations that is higher than the interest rate of our current overall loan portfolio.”
Details
- Total loans, including loans held for sale, increased $75 million in the first nine months of 2019 as a result of $1.4 billion of originations which was partially offset by the sale of $551 million of multifamily loans and payoffs or scheduled payments of $749 million.
- The $638 million growth in deposits during the first nine months of 2019 included increases in branch deposits of $92 million, specialty deposits of $541 million and wholesale deposits of $5 million.
- The $309 million increase in AUM during the first nine months of 2019 was the net result of $204 million of new accounts, $492 million of portfolio gains and terminations, and net withdrawals of $387 million.
About First Foundation
First Foundation, (NASDAQ: FFWM), a financial institution founded in 1990, provides personal banking, business banking and private wealth management. The Company has offices in California, Nevada and Hawaii, with headquarters in Irvine, California. For more information, please visit www.firstfoundationinc.com.
We have two business segments, “Banking” and “Investment Management and Wealth Planning” (“Wealth Management”). Banking includes the operations of FFB and First Foundation Insurance Services, and Wealth Management includes the operations of FFA. The financial position and operating results of the stand-alone holding company, FFI, are included under the caption “Other” in certain of the tables that follow, along with any consolidation elimination entries.
Forward-Looking Statements
Statements in this news release regarding our expectations and beliefs about our future financial performance and financial condition, dividends, as well as trends in our business and markets are “forward-looking statements” as defined in the Private Securities Litigation Reform Act of 1995. Forward-looking statements often include words such as “believe,” “expect,” “anticipate,” “intend,” “plan,” “estimate,” “project,” “outlook,” or words of similar meaning, or future or conditional verbs such as “will,” “would,” “should,” “could,” or “may.” The forward looking statements in this news release are based on current information and on assumptions that we make about future events and circumstances that are subject to a number of risks and uncertainties that are often difficult to predict and beyond our control. As a result of those risks and uncertainties, our actual financial results in the future could differ, possibly materially, from those expressed in or implied by the forward looking statements contained in this news release and could cause us to make changes to our future plans. Those risks and uncertainties include, but are not limited to the risk of incurring loan losses, which is an inherent risk of the banking business; the risk that we will not be able to continue our internal growth rate; the risk that we will not be able to access the securitization market on favorable terms or at all; the risk that the economic recovery in the United States will stall or will be adversely affected by domestic or international economic conditions and risks associated with the Federal Reserve Board taking actions with respect to interest rates, any of which could adversely affect our interest income and interest rate margins and, therefore, our future operating results; the risk that the performance of our investment management business or of the equity and bond markets could lead clients to move their funds from or close their investment accounts with us, which would reduce our assets under management and adversely affect our operating results; the risk that we may be unable or that our board of directors may determine that it is inadvisable to pay future dividends; risks associated with changes in income tax laws and regulations; and risks associated with seeking new client relationships and maintaining existing client relationships. Additional information regarding these and other risks and uncertainties to which our business and future financial performance are subject is contained in Item 1A, entitled “Risk Factors” in our 2018 Annual Report on Form 10-K for the fiscal year ended December 31, 2018 that we filed with the SEC on March 1, 2019, and other documents we file with the SEC from time to time. We urge readers of this news release to review the Risk Factors section of that Annual Report and the Risk Factors section of other documents we file with the SEC from time to time. Also, our actual financial results in the future may differ from those currently expected due to additional risks and uncertainties of which we are not currently aware or which we do not currently view as, but in the future may become, material to our business or operating results. Due to these and other possible uncertainties and risks, readers are cautioned not to place undue reliance on the forward-looking statements contained in this news release, which speak only as of today’s date, or to make predictions based solely on historical financial performance. We also disclaim any obligation to update forward-looking statements contained in this news release or in the above-referenced 2018 Annual Report on Form 10-K, whether as a result of new information, future events or otherwise, except as may be required by law or NASDAQ rules.
|
FIRST FOUNDATION INC. CONSOLIDATED BALANCE SHEETS – Unaudited (in thousands, except share and per share amounts) |
||||||||
|
|
|
September 30, 2019 |
|
December 31, 2018 |
||||
|
ASSETS |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
268,446 |
|
|
$ |
67,312 |
|
|
Securities available-for-sale (“AFS”) |
|
|
1,042,940 |
|
|
|
809,569 |
|
|
Loans held for sale |
|
|
501,860 |
|
|
|
507,643 |
|
|
|
|
|
|
|
|
|
|
|
|
Loans, net of deferred fees |
|
|
4,374,208 |
|
|
|
4,293,669 |
|
|
Allowance for loan and lease losses (“ALLL”) |
|
|
(20,500 |
) |
|
|
(19,000 |
) |
|
Net loans |
|
|
4,353,708 |
|
|
|
4,274,669 |
|
|
|
|
|
|
|
|
|
|
|
|
Investment in FHLB stock |
|
|
17,250 |
|
|
|
20,307 |
|
|
Deferred taxes |
|
|
9,534 |
|
|
|
13,251 |
|
|
Premises and equipment, net |
|
|
8,694 |
|
|
|
9,145 |
|
|
Real estate owned (“REO”) |
|
|
− |
|
|
|
815 |
|
|
Goodwill and intangibles |
|
|
97,717 |
|
|
|
99,482 |
|
|
Other assets |
|
|
58,197 |
|
|
|
38,219 |
|
|
Total Assets |
|
$ |
6,358,346 |
|
|
$ |
5,840,412 |
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND SHAREHOLDERS’ EQUITY |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities: |
|
|
|
|
|
|
|
|
|
Deposits |
|
$ |
5,170,566 |
|
|
$ |
4,532,968 |
|
|
Borrowings |
|
|
520,000 |
|
|
|
708,000 |
|
|
Accounts payable and other liabilities |
|
|
63,420 |
|
|
|
40,260 |
|
|
Total Liabilities |
|
|
5,753,986 |
|
|
|
5,281,228 |
|
|
|
|
|
|
|
|
|
|
|
|
Commitments and contingencies |
|
|
− |
|
|
|
− |
|
|
Shareholders’ Equity |
|
|
|
|
|
|
|
|
|
Common Stock, par value $.001: 70,000,000 shares authorized; 44,652,847 and 44,496,007 shares issued and outstanding at September 30, 2019 and December 31, 2018, respectively |
|
|
45 |
|
|
|
44 |
|
|
Additional paid-in-capital |
|
|
433,426 |
|
|
|
431,832 |
|
|
Retained earnings |
|
|
162,792 |
|
|
|
128,461 |
|
|
Accumulated other comprehensive income (loss), net of tax |
|
|
8,097 |
|
|
|
(1,153 |
) |
|
Total Shareholders’ Equity |
|
|
604,360 |
|
|
|
559,184 |
|
|
|
|
|
|
|
|
|
|
|
|
Total Liabilities and Shareholders’ Equity |
|
$ |
6,358,346 |
|
|
$ |
5,840,412 |
|
|
|
|
|
|
|
|
|
|
|
|
FIRST FOUNDATION INC. CONSOLIDATED INCOME STATEMENTS – Unaudited (in thousands, except share and per share amounts) |
||||||||||||||||
|
|
|
For the Quarter Ended September 30, |
|
For the Nine Months Ended September 30, |
||||||||||||
|
|
|
2019 |
|
2018 |
|
2019 |
|
2018 |
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest income: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans |
|
$ |
56,483 |
|
|
$ |
53,345 |
|
|
$ |
166,828 |
|
|
$ |
135,851 |
|
|
Securities |
|
|
5,349 |
|
|
|
3,579 |
|
|
|
17,700 |
|
|
|
10,576 |
|
|
FHLB Stock, fed funds sold and deposits |
|
|
782 |
|
|
|
1,123 |
|
|
|
1,938 |
|
|
|
3,437 |
|
|
Total interest income |
|
|
62,614 |
|
|
|
58,047 |
|
|
|
186,466 |
|
|
|
149,864 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits |
|
|
16,675 |
|
|
|
11,442 |
|
|
|
48,419 |
|
|
|
25,398 |
|
|
Borrowings |
|
|
2,807 |
|
|
|
2,879 |
|
|
|
11,981 |
|
|
|
10,221 |
|
|
Total interest expense |
|
|
19,482 |
|
|
|
14,321 |
|
|
|
60,400 |
|
|
|
35,619 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income |
|
|
43,132 |
|
|
|
43,726 |
|
|
|
126,066 |
|
|
|
114,245 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Provision for loan losses |
|
|
172 |
|
|
|
9 |
|
|
|
1,943 |
|
|
|
4,147 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income after provision for loan losses |
|
|
42,960 |
|
|
|
43,717 |
|
|
|
124,123 |
|
|
|
110,098 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest income: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Asset management, consulting and other fees |
|
|
7,304 |
|
|
|
7,228 |
|
|
|
21,234 |
|
|
|
21,497 |
|
|
Gain on sale of loans |
|
|
4,218 |
|
|
|
1,364 |
|
|
|
4,218 |
|
|
|
419 |
|
|
Other income |
|
|
2,460 |
|
|
|
2,512 |
|
|
|
6,126 |
|
|
|
5,154 |
|
|
Total noninterest income |
|
|
13,982 |
|
|
|
11,104 |
|
|
|
31,578 |
|
|
|
27,070 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest expense: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Compensation and benefits |
|
|
17,167 |
|
|
|
17,577 |
|
|
|
53,402 |
|
|
|
51,391 |
|
|
Occupancy and depreciation |
|
|
5,450 |
|
|
|
5,590 |
|
|
|
15,485 |
|
|
|
14,524 |
|
|
Professional services and marketing costs |
|
|
1,745 |
|
|
|
2,271 |
|
|
|
5,773 |
|
|
|
6,580 |
|
|
Customer service costs |
|
|
5,920 |
|
|
|
4,854 |
|
|
|
13,592 |
|
|
|
11,449 |
|
|
Other expenses |
|
|
2,412 |
|
|
|
3,675 |
|
|
|
9,669 |
|
|
|
12,993 |
|
|
Total noninterest expense |
|
|
32,694 |
|
|
|
33,967 |
|
|
|
97,921 |
|
|
|
96,937 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income before taxes on income |
|
|
24,248 |
|
|
|
20,854 |
|
|
|
57,780 |
|
|
|
40,231 |
|
|
Taxes on income |
|
|
6,892 |
|
|
|
6,147 |
|
|
|
16,755 |
|
|
|
11,402 |
|
|
Net income |
|
$ |
17,356 |
|
|
$ |
14,707 |
|
|
$ |
41,025 |
|
|
$ |
28,829 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income per share: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
$ |
0.39 |
|
|
$ |
0.33 |
|
|
$ |
0.92 |
|
|
$ |
0.70 |
|
|
Diluted |
|
$ |
0.39 |
|
|
$ |
0.33 |
|
|
$ |
0.91 |
|
|
$ |
0.69 |
|
|
Shares used in computation: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
|
44,639,481 |
|
|
|
44,405,094 |
|
|
|
44,602,368 |
|
|
|
41,288,804 |
|
|
Diluted |
|
|
44,935,308 |
|
|
|
44,852,107 |
|
|
|
44,876,614 |
|
|
|
41,790,656 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
FIRST FOUNDATION INC. SELECTED FINANCIAL INFORMATION – Unaudited (in thousands, except share and per share amounts and percentages) |
||||||||||||||||
|
|
|
For the Quarter Ended September 30, |
|
For the Nine Months Ended September 30, |
||||||||||||
|
|
|
2019 |
|
2018 |
|
2019 |
|
2018 |
||||||||
|
Selected Income Statement Data: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income |
|
$ |
43,132 |
|
|
$ |
43,726 |
|
|
$ |
126,066 |
|
|
$ |
114,245 |
|
|
Provision for loan losses |
|
|
172 |
|
|
|
9 |
|
|
|
1,943 |
|
|
|
4,147 |
|
|
Noninterest Income: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Asset management, consulting and other fees |
|
|
7,304 |
|
|
|
7,228 |
|
|
|
21,234 |
|
|
|
21,497 |
|
|
Gain (loss) on sale of loans |
|
|
4,218 |
|
|
|
1,364 |
|
|
|
4,218 |
|
|
|
419 |
|
|
Other |
|
|
2,460 |
|
|
|
2,512 |
|
|
|
6,126 |
|
|
|
5,154 |
|
|
Noninterest expense |
|
|
32,694 |
|
|
|
33,967 |
|
|
|
97,921 |
|
|
|
96,937 |
|
|
Income before taxes |
|
|
24,248 |
|
|
|
20,854 |
|
|
|
57,780 |
|
|
|
40,231 |
|
|
Net income |
|
|
17,356 |
|
|
|
14,707 |
|
|
|
41,025 |
|
|
|
28,829 |
|
|
Net income per share: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
$ |
0.39 |
|
|
$ |
0.33 |
|
|
$ |
0.92 |
|
|
$ |
0.70 |
|
|
Diluted |
|
|
0.39 |
|
|
|
0.33 |
|
|
|
0.91 |
|
|
|
0.69 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selected Performance Ratios: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on average assets – annualized |
|
|
1.10 |
% |
|
|
1.02 |
% |
|
|
0.90 |
% |
|
|
0.74 |
% |
|
Return on average equity – annualized |
|
|
11.7 |
% |
|
|
11.2 |
% |
|
|
9.5 |
% |
|
|
8.5 |
% |
|
Return on average tangible equity – annualized(1) |
|
|
14.0 |
% |
|
|
13.9 |
% |
|
|
11.4 |
% |
|
|
9.8 |
% |
|
Net yield on interest-earning assets |
|
|
2.89 |
% |
|
|
3.12 |
% |
|
|
2.87 |
% |
|
|
2.97 |
% |
|
Efficiency ratio (2) |
|
|
59.5 |
% |
|
|
61.9 |
% |
|
|
63.1 |
% |
|
|
65.9 |
% |
|
Noninterest income as a % of total revenues |
|
|
24.5 |
% |
|
|
20.3 |
% |
|
|
20.0 |
% |
|
|
19.2 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other Information: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loan originations |
|
$ |
485,817 |
|
|
$ |
368,089 |
|
|
$ |
1,379,250 |
|
|
$ |
1,339,125 |
|
|
Charge-offs (recoveries) / average loans – annualized |
|
|
-0.01 |
% |
|
|
− |
% |
|
|
0.01 |
% |
|
|
0.11 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) |
Tangible equity is a non-GAAP financial measure. See disclosures regarding “Use of Non-GAAP Financial Measures” included as a separate section in this press release. |
|
|
(2) |
Efficiency Ratio is a non-GAAP financial measure: See disclosures regarding “Use of Non-GAAP Financial Measures” included as a separate section in this press release. |
|
|
FIRST FOUNDATION INC. SELECTED FINANCIAL INFORMATION – Unaudited (in thousands, except share and per share amounts and percentages) |
||||||||
|
|
|
September 30, 2019 |
|
December 31, 2018 |
||||
|
Selected Balance Sheet Data: |
|
|
|
|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
268,446 |
|
|
$ |
67,312 |
|
|
Loans held for sale |
|
|
501,860 |
|
|
|
507,643 |
|
|
Loans, net of deferred fees |
|
|
4,374,208 |
|
|
|
4,293,669 |
|
|
ALLL |
|
|
20,500 |
|
|
|
19,000 |
|
|
Total assets |
|
|
6,358,346 |
|
|
|
5,840,412 |
|
|
Noninterest-bearing deposits |
|
|
1,532,105 |
|
|
|
1,074,661 |
|
|
Interest-bearing deposits |
|
|
3,638,461 |
|
|
|
3,458,307 |
|
|
Borrowings |
|
|
520,000 |
|
|
|
708,000 |
|
|
Shareholders’ equity |
|
|
604,360 |
|
|
|
559,184 |
|
|
|
|
|
|
|
|
|
|
|
|
Selected Capital Data: |
|
|
|
|
|
|
|
|
|
Tangible common equity to tangible assets(3) |
|
|
8.09 |
% |
|
|
8.01 |
% |
|
Tangible book value per share(3) |
|
$ |
11.35 |
|
|
$ |
10.33 |
|
|
Shares outstanding at end of period |
|
|
44,652,847 |
|
|
|
44,496,007 |
|
|
|
|
|
|
|
|
|
|
|
|
Other Information: |
|
|
|
|
|
|
|
|
|
Assets under management (end of period) |
|
$ |
4,244,079 |
|
|
$ |
3,934,700 |
|
|
Number of employees |
|
|
490 |
|
|
|
482 |
|
|
Loan to deposit ratio |
|
|
94.3 |
% |
|
|
105.9 |
% |
|
Nonperforming assets to total assets |
|
|
0.33 |
% |
|
|
0.21 |
% |
|
Ratio of ALLL to loans(4) |
|
|
0.52 |
% |
|
|
0.51 |
% |
|
|
|
|
|
|
|
|
|
|
|
(3) |
Tangible common equity and tangible book value are non-GAAP financial measures. See disclosures regarding “Use of Non-GAAP Financial Measures” included as a separate section in this press release. |
|
|
(4) |
This ratio excludes certain acquired loans for which GAAP requires estimated credit losses to be recorded as discounts to those loans. |
|
|
FIRST FOUNDATION INC. SEGMENT REPORTING – Unaudited (in thousands) |
||||||||||||||||
|
|
|
For the Quarter Ended September 30, |
|
For the Nine Months Ended September 30, |
||||||||||||
|
|
|
2019 |
|
2018 |
|
2019 |
|
2018 |
||||||||
|
Banking: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest income |
|
$ |
62,614 |
|
|
$ |
58,047 |
|
|
$ |
186,466 |
|
|
$ |
149,864 |
|
|
Interest expense |
|
|
19,328 |
|
|
|
13,786 |
|
|
|
60,132 |
|
|
|
34,049 |
|
|
Net interest income |
|
|
43,286 |
|
|
|
44,261 |
|
|
|
126,334 |
|
|
|
115,815 |
|
|
Provision for loan losses |
|
|
172 |
|
|
|
9 |
|
|
|
1,943 |
|
|
|
4,147 |
|
|
Noninterest income |
|
|
8,173 |
|
|
|
5,079 |
|
|
|
14,638 |
|
|
|
8,586 |
|
|
Noninterest expense |
|
|
26,397 |
|
|
|
27,530 |
|
|
|
78,785 |
|
|
|
76,896 |
|
|
Income before taxes on income |
|
$ |
24,890 |
|
|
$ |
21,801 |
|
|
$ |
60,244 |
|
|
$ |
43,358 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Wealth Management: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest income |
|
$ |
6,161 |
|
|
$ |
6,260 |
|
|
$ |
17,874 |
|
|
$ |
18,920 |
|
|
Noninterest expense |
|
|
5,423 |
|
|
|
5,189 |
|
|
|
16,508 |
|
|
|
16,333 |
|
|
Income before taxes on income |
|
$ |
738 |
|
|
$ |
1,071 |
|
|
$ |
1,366 |
|
|
$ |
2,587 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other and Eliminations: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest income |
|
$ |
− |
|
|
$ |
− |
|
|
$ |
− |
|
|
$ |
− |
|
|
Interest expense |
|
|
154 |
|
|
|
535 |
|
|
|
268 |
|
|
|
1,570 |
|
|
Net interest income |
|
|
(154 |
) |
|
|
(535 |
) |
|
|
(268 |
) |
|
|
(1,570 |
) |
|
Noninterest income |
|
|
(352 |
) |
|
|
(235 |
) |
|
|
(934 |
) |
|
|
(436 |
) |
|
Noninterest expense |
|
|
874 |
|
|
|
1,248 |
|
|
|
2,628 |
|
|
|
3,708 |
|
|
Income before taxes on income |
|
$ |
(1,380 |
) |
|
$ |
(2,018 |
) |
|
$ |
(3,830 |
) |
|
$ |
(5,714 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
FIRST FOUNDATION INC. ROLLING INCOME STATEMENTS – Unaudited (in thousands, except share and per share amounts) |
||||||||||||||||||||
|
|
|
For the Quarter Ended |
||||||||||||||||||
|
|
|
September 30, 2018 |
|
December 31, 2018 |
|
March 31, 2019 |
|
June 30, 2019 |
|
September 30, 2019 |
||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest income: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans |
|
$ |
53,345 |
|
|
$ |
50,360 |
|
|
$ |
53,835 |
|
|
$ |
56,510 |
|
|
$ |
56,483 |
|
|
Securities |
|
|
3,579 |
|
|
|
6,279 |
|
|
|
6,165 |
|
|
|
6,186 |
|
|
|
5,349 |
|
|
FHLB Stock, fed funds sold and deposits |
|
|
1,123 |
|
|
|
803 |
|
|
|
544 |
|
|
|
612 |
|
|
|
782 |
|
|
Total interest income |
|
|
58,047 |
|
|
|
57,442 |
|
|
|
60,544 |
|
|
|
63,308 |
|
|
|
62,614 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits |
|
|
11,442 |
|
|
|
13,378 |
|
|
|
15,448 |
|
|
|
16,296 |
|
|
|
16,675 |
|
|
Borrowings |
|
|
2,879 |
|
|
|
2,699 |
|
|
|
4,049 |
|
|
|
5,125 |
|
|
|
2,807 |
|
|
Total interest expense |
|
|
14,321 |
|
|
|
16,077 |
|
|
|
19,497 |
|
|
|
21,421 |
|
|
|
19,482 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income |
|
|
43,726 |
|
|
|
41,365 |
|
|
|
41,047 |
|
|
|
41,887 |
|
|
|
43,132 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Provision for loan losses |
|
|
9 |
|
|
|
73 |
|
|
|
540 |
|
|
|
1,231 |
|
|
|
172 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income after provision for loan losses |
|
|
43,717 |
|
|
|
41,292 |
|
|
|
40,507 |
|
|
|
40,656 |
|
|
|
42,960 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest income: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Asset management, consulting and other fees |
|
|
7,228 |
|
|
|
7,251 |
|
|
|
6,794 |
|
|
|
7,136 |
|
|
|
7,304 |
|
|
Gain (loss) on sale of loans |
|
|
1,364 |
|
|
|
− |
|
|
|
− |
|
|
|
− |
|
|
|
4,218 |
|
|
Other income |
|
|
2,512 |
|
|
|
1,450 |
|
|
|
1,671 |
|
|
|
1,995 |
|
|
|
2,460 |
|
|
Total noninterest income |
|
|
11,104 |
|
|
|
8,701 |
|
|
|
8,465 |
|
|
|
9,131 |
|
|
|
13,982 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest expense: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Compensation and benefits |
|
|
17,577 |
|
|
|
16,117 |
|
|
|
18,902 |
|
|
|
17,333 |
|
|
|
17,167 |
|
|
Occupancy and depreciation |
|
|
5,590 |
|
|
|
5,255 |
|
|
|
4,868 |
|
|
|
5,167 |
|
|
|
5,450 |
|
|
Professional services and marketing costs |
|
|
2,271 |
|
|
|
2,003 |
|
|
|
2,004 |
|
|
|
2,024 |
|
|
|
1,745 |
|
|
Customer service costs |
|
|
4,854 |
|
|
|
3,628 |
|
|
|
3,389 |
|
|
|
4,283 |
|
|
|
5,920 |
|
|
Other expenses |
|
|
3,675 |
|
|
|
3,135 |
|
|
|
3,782 |
|
|
|
3,475 |
|
|
|
2,412 |
|
|
Total noninterest expense |
|
|
33,967 |
|
|
|
30,138 |
|
|
|
32,945 |
|
|
|
32,282 |
|
|
|
32,694 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income before taxes on income |
|
|
20,854 |
|
|
|
19,855 |
|
|
|
16,027 |
|
|
|
17,505 |
|
|
|
24,248 |
|
|
Taxes on income |
|
|
6,147 |
|
|
|
5,726 |
|
|
|
4,768 |
|
|
|
5,095 |
|
|
|
6,892 |
|
|
Net income |
|
$ |
14,707 |
|
|
$ |
14,129 |
|
|
$ |
11,259 |
|
|
$ |
12,410 |
|
|
$ |
17,356 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income per share: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
$ |
0.33 |
|
|
$ |
0.32 |
|
|
$ |
0.25 |
|
|
$ |
0.28 |
|
|
$ |
0.39 |
|
|
Diluted |
|
$ |
0.33 |
|
|
$ |
0.31 |
|
|
$ |
0.25 |
|
|
$ |
0.28 |
|
|
$ |
0.39 |
|
|
Shares used in computation: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
|
44,405,094 |
|
|
|
44,476,829 |
|
|
|
44,540,865 |
|
|
|
44,625,673 |
|
|
|
44,639,481 |
|
|
Diluted |
|
|
44,852,107 |
|
|
|
44,871,146 |
|
|
|
44,798,306 |
|
|
|
44,894,720 |
|
|
|
44,935,308 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
FIRST FOUNDATION INC. ROLLING SEGMENT REPORTING – Unaudited (in thousands) |
||||||||||||||||||||
|
|
|
For the Quarter Ended |
||||||||||||||||||
|
|
|
September 30, 2018 |
|
December 31, 2018 |
|
March 31, 2019 |
|
June 30, 2019 |
|
September 30, 2019 |
||||||||||
|
Banking: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest income |
|
$ |
58,047 |
|
|
$ |
57,442 |
|
|
$ |
60,544 |
|
|
$ |
63,308 |
|
|
$ |
62,614 |
|
|
Interest expense |
|
|
13,786 |
|
|
|
15,886 |
|
|
|
19,482 |
|
|
|
21,322 |
|
|
|
19,328 |
|
|
Net interest income |
|
|
44,261 |
|
|
|
41,556 |
|
|
|
41,062 |
|
|
|
41,986 |
|
|
|
43,286 |
|
|
Provision for loan losses |
|
|
9 |
|
|
|
73 |
|
|
|
540 |
|
|
|
1,231 |
|
|
|
172 |
|
|
Noninterest income |
|
|
5,079 |
|
|
|
2,736 |
|
|
|
2,994 |
|
|
|
3,471 |
|
|
|
8,173 |
|
|
Noninterest expense |
|
|
27,530 |
|
|
|
23,882 |
|
|
|
26,587 |
|
|
|
25,801 |
|
|
|
26,397 |
|
|
Income before taxes on income |
|
$ |
21,801 |
|
|
$ |
20,337 |
|
|
$ |
16,929 |
|
|
$ |
18,425 |
|
|
$ |
24,890 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Wealth Management: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest income |
|
$ |
6,260 |
|
|
$ |
6,327 |
|
|
$ |
5,731 |
|
|
$ |
5,982 |
|
|
$ |
6,161 |
|
|
Noninterest expense |
|
|
5,189 |
|
|
|
5,337 |
|
|
|
5,518 |
|
|
|
5,567 |
|
|
|
5,423 |
|
|
Income before taxes on income |
|
$ |
1,071 |
|
|
$ |
990 |
|
|
$ |
213 |
|
|
$ |
415 |
|
|
$ |
738 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other and Eliminations: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest income |
|
$ |
− |
|
|
$ |
− |
|
|
$ |
− |
|
|
$ |
− |
|
|
$ |
− |
|
|
Interest expense |
|
|
535 |
|
|
|
191 |
|
|
|
15 |
|
|
|
99 |
|
|
|
154 |
|
|
Net interest income |
|
|
(535 |
) |
|
|
(191 |
) |
|
|
(15 |
) |
|
|
(99 |
) |
|
|
(154 |
) |
|
Noninterest income |
|
|
(235 |
) |
|
|
(362 |
) |
|
|
(260 |
) |
|
|
(322 |
) |
|
|
(352 |
) |
|
Noninterest expense |
|
|
1,248 |
|
|
|
919 |
|
|
|
840 |
|
|
|
914 |
|
|
|
874 |
|
|
Loss before taxes on income |
|
$ |
(2,018 |
) |
|
$ |
(1,472 |
) |
|
$ |
(1,115 |
) |
|
$ |
(1,335 |
) |
|
$ |
(1,380 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
FIRST FOUNDATION INC. SELECTED INFORMATION: INTEREST MARGIN – Unaudited (in thousands, except percentages) |
||||||||||||||||
|
|
|
For the Quarter Ended September 30, |
|
For the Nine Months Ended September 30, |
||||||||||||
|
|
|
2019 |
|
2018 |
|
2019 |
|
2018 |
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average Balances: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans |
|
$ |
5,282,338 |
|
|
$ |
4,929,164 |
|
|
$ |
5,062,689 |
|
|
$ |
4,418,421 |
|
|
Securities |
|
|
616,424 |
|
|
|
516,057 |
|
|
|
732,262 |
|
|
|
519,181 |
|
|
Total interest-earnings assets |
|
|
5,985,601 |
|
|
|
5,609,150 |
|
|
|
5,856,354 |
|
|
|
5,123,591 |
|
|
Deposits: interest-bearing |
|
|
3,553,660 |
|
|
|
3,224,812 |
|
|
|
3,520,069 |
|
|
|
2,731,577 |
|
|
Deposits: noninterest-bearing |
|
|
1,508,290 |
|
|
|
1,520,153 |
|
|
|
1,270,845 |
|
|
|
1,354,188 |
|
|
Borrowings |
|
|
486,807 |
|
|
|
482,753 |
|
|
|
640,267 |
|
|
|
675,435 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average Yield / Rate: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans |
|
|
4.27 |
% |
|
|
4.32 |
% |
|
|
4.40 |
% |
|
|
4.10 |
% |
|
Securities |
|
|
3.47 |
% |
|
|
2.77 |
% |
|
|
3.22 |
% |
|
|
2.72 |
% |
|
Total interest-earnings assets |
|
|
4.18 |
% |
|
|
4.13 |
% |
|
|
4.25 |
% |
|
|
3.90 |
% |
|
Deposits (interest-bearing only) |
|
|
1.86 |
% |
|
|
1.41 |
% |
|
|
1.84 |
% |
|
|
1.24 |
% |
|
Deposits (noninterest and interest-bearing) |
|
|
1.31 |
% |
|
|
0.96 |
% |
|
|
1.35 |
% |
|
|
0.83 |
% |
|
Borrowings |
|
|
2.29 |
% |
|
|
2.37 |
% |
|
|
2.50 |
% |
|
|
2.02 |
% |
|
Total interest-bearing liabilities |
|
|
1.91 |
% |
|
|
1.53 |
% |
|
|
1.94 |
% |
|
|
1.40 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Interest Rate Spread |
|
|
2.27 |
% |
|
|
2.60 |
% |
|
|
2.31 |
% |
|
|
2.50 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Yield on Interest-earning Assets |
|
|
2.89 |
% |
|
|
3.12 |
% |
|
|
2.87 |
% |
|
|
2.97 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Quarter Ended |
||||||||||||||||||
|
|
|
September 30, 2018 |
|
December 31, 2018 |
|
March 31, 2019 |
|
June 30, 2019 |
|
September 30, 2019 |
||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average Balances: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans |
|
$ |
4,929,164 |
|
|
$ |
4,558,869 |
|
|
$ |
4,835,920 |
|
|
$ |
5,064,903 |
|
|
$ |
5,282,338 |
|
|
Securities |
|
|
516,057 |
|
|
|
818,056 |
|
|
|
802,503 |
|
|
|
779,903 |
|
|
|
616,424 |
|
|
Total interest-earnings assets |
|
|
5,609,150 |
|
|
|
5,427,610 |
|
|
|
5,687,224 |
|
|
|
5,892,960 |
|
|
|
5,985,601 |
|
|
Deposits: interest-bearing |
|
|
3,224,812 |
|
|
|
3,332,969 |
|
|
|
3,505,191 |
|
|
|
3,500,824 |
|
|
|
3,553,660 |
|
|
Deposits: noninterest-bearing |
|
|
1,520,153 |
|
|
|
1,257,721 |
|
|
|
1,124,318 |
|
|
|
1,175,707 |
|
|
|
1,508,290 |
|
|
Borrowings |
|
|
482,753 |
|
|
|
427,006 |
|
|
|
637,036 |
|
|
|
798,609 |
|
|
|
486,807 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average Yield / Rate: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans |
|
|
4.32 |
% |
|
|
4.41 |
% |
|
|
4.46 |
% |
|
|
4.46 |
% |
|
|
4.27 |
% |
|
Securities |
|
|
2.77 |
% |
|
|
3.07 |
% |
|
|
3.07 |
% |
|
|
3.17 |
% |
|
|
3.47 |
% |
|
Total interest-earnings assets |
|
|
4.13 |
% |
|
|
4.23 |
% |
|
|
4.27 |
% |
|
|
4.30 |
% |
|
|
4.18 |
% |
|
Deposits (interest-bearing only) |
|
|
1.41 |
% |
|
|
1.59 |
% |
|
|
1.79 |
% |
|
|
1.87 |
% |
|
|
1.86 |
% |
|
Deposits (noninterest and interest-bearing) |
|
|
0.96 |
% |
|
|
1.16 |
% |
|
|
1.35 |
% |
|
|
1.40 |
% |
|
|
1.31 |
% |
|
Borrowings |
|
|
2.37 |
% |
|
|
2.51 |
% |
|
|
2.58 |
% |
|
|
2.57 |
% |
|
|
2.29 |
% |
|
Total interest-bearing liabilities |
|
|
1.53 |
% |
|
|
1.70 |
% |
|
|
1.91 |
% |
|
|
2.00 |
% |
|
|
1.91 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Interest Rate Spread |
|
|
2.60 |
% |
|
|
2.53 |
% |
|
|
2.36 |
% |
|
|
2.30 |
% |
|
|
2.27 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Yield on Interest-earning Assets |
|
|
3.12 |
% |
|
|
3.05 |
% |
|
|
2.88 |
% |
|
|
2.84 |
% |
|
|
2.89 |
% |
Contacts
John Michel
Chief Financial Officer
First Foundation Inc.
949-202-4160
[email protected]
