First Foundation (US:FFWM)2019-08-08 17:41Financial Performance - Total revenues rose by 16% in the first six months of 2019 compared to the same period in 2018[149]. - Net income for the quarter ending June 30, 2019, was $12.4 million, up from $5.1 million in the same quarter of 2018[151]. - Income before taxes for the first six months of 2019 was $33.5 million, compared to $19.4 million in the first six months of 2018[151]. - The effective tax rate for the first six months of 2019 was 29.4%, compared to 27.1% for the same period in 2018[152]. Loan and Asset Growth - Total loans increased by $452 million during the first six months of 2019, driven by $893 million in originations[149]. - Total assets grew to $6,097,178 thousand, up from $5,217,346 thousand year-over-year[158]. - Total loans, including loans held for sale, reached $4.631 billion as of June 30, 2019, up from $4.294 billion at the end of 2018[179]. - Total real estate loans increased to $4.044 billion as of June 30, 2019, compared to $3.811 billion at the end of 2018[179]. Interest Income and Rates - Net interest income for Banking segment was $83.048 million for the first six months of 2019, an increase from $71.554 million in 2018[155]. - Net interest income increased 16% from $36.8 million in Q2 2018 to $42.0 million in Q2 2019, driven by a 15% increase in interest-earning assets[162]. - The net yield on interest-earning assets was 2.86% for the first six months of 2019, compared to 2.89% in the same period of 2018[162]. - The net interest rate spread decreased from 2.45% in the first six months of 2018 to 2.33% in the first six months of 2019[162]. Noninterest Income and Expenses - Noninterest income for Wealth Management segment was $11.713 million for the first six months of 2019, down from $12.660 million in 2018[155]. - Noninterest income in Banking for Q2 2019 was $3.471 million, a significant increase of $2.521 million compared to Q2 2018, driven by higher trust fees and loan-related fees[165]. - Total noninterest income for the first six months of 2019 was $6.465 million, up $3.0 million from the same period in 2018, primarily due to increased trust and loan fees[166]. - Total noninterest expense in Banking for the first six months of 2019 was $52.388 million, up from $49.366 million in the same period of 2018, due to staffing and expansion costs[171]. Capital and Equity - Shareholders' equity increased to $570,778 thousand from $432,454 thousand year-over-year[158]. - Shareholders' equity decreased to $586.703 million as of June 30, 2019, from $559.184 million at the end of 2018[174]. - FFI's CET1 capital ratio was 10.84%, exceeding the required 4.50% for well-capitalized institutions[208]. - FFB's total risk-based capital ratio was 11.54% as of June 30, 2019, above the 8.00% minimum requirement[208]. Loan Quality and Provisions - Provision for loan losses was $1.771 million for the first six months of 2019, a decrease from $4.138 million in the same period of 2018[155]. - Provisions for loan losses were $1.2 million for Q2 2019, down from $2.5 million in Q2 2018, indicating improved loan portfolio quality[163]. - Total past due and nonaccrual loans amounted to $21.204 million as of June 30, 2019, with a total loan portfolio of $4.62 billion[186]. - The total allowance for loan losses (ALLL) increased to $20,200,000 as of June 30, 2019, from $19,000,000 at the end of 2018, reflecting a provision for loan losses of $1,231,000 during the quarter[192]. Deposits and Borrowings - Deposits grew by $211 million, with specialty deposits increasing by $248 million and wholesale deposits by $62 million, partially offset by a $99 million decrease in branch deposits[174]. - Borrowings increased by $174 million to support loan growth, with the outstanding balance on the holding company line of credit at $20 million as of June 30, 2019[174]. - The bank held $1.3 billion in brokered deposits as of June 30, 2019[183]. - Borrowings increased to $862 million in overnight FHLB advances as of June 30, 2019, up from $703 million at December 31, 2018[184]. Cash Flow and Liquidity - Cash flows provided by operating activities for the six months ended June 30, 2019, amounted to $24,000,000, an increase from $16,000,000 in the same period of 2018[200]. - Financing activities provided net cash of $381,000,000 during the six months ended June 30, 2019, driven by a $211,000,000 increase in deposits and $159,000,000 in FHLB advances[202]. - The company’s liquidity management focuses on generating cash to meet funding needs, with $1.6 billion in available lines of credit as of June 30, 2019[199]. Dividends and Future Plans - The Company paid a quarterly cash dividend of $0.05 per common share in the first and second quarters of 2019, with intentions to continue this practice[211]. - There were no material commitments for capital expenditures as of June 30, 2019, but the Company intends to explore growth opportunities through acquisitions or new offices[212].