First Foundation (FFWM) - 2024 Q4 - Annual Results

Financial Performance - First Foundation Inc. reported a net loss of $14.1 million, or$ 0.17 per share, for Q4 2024, compared to a net loss of $82.2 million in Q3 2024[2]. - The company recorded an income tax benefit of$ 8.8 million for the quarter, with an annual effective tax rate of 32.7%[33]. - The net loss for Q4 2024 was $(14,111,000), compared to a net loss of$ (82,174,000) in Q3 2024 and a net income of $2,548,000 in Q4 2023[49]. - Adjusted net loss attributable to common shareholders for Q4 2024 was$ (13,873) thousand, compared to $2,679 thousand in Q3 2024 and$ 2,828 thousand in Q4 2023[62]. - Return on average assets for Q4 2024 was (2.44)%, compared to (0.42)% in Q3 2024 and 0.08% in Q4 2023[51]. - Return on average common equity for Q4 2024 was (5.8)%, down from (33.9)% in Q3 2024 and up from 1.1% in Q4 2023[63]. Income and Expenses - Net interest income for Q4 2024 was $51.3 million, an increase from$ 49.1 million in Q3 2024, with a net interest margin of 1.58%[8]. - Noninterest income totaled $13.4 million for the quarter, significantly impacted by a$ 117.5 million LOCOM adjustment in the previous quarter[26]. - Noninterest expense increased to $67.0 million from$ 60.2 million in the prior quarter, with a notable rise in compensation and benefits expense[28]. - Total noninterest expense for Q4 2024 was $66,989 thousand, an increase from$ 60,225 thousand in Q3 2024 and $55,892 thousand in Q4 2023[67]. - The efficiency ratio (non-GAAP) for the quarter was 103.1%, compared to 98.1% in the prior quarter, indicating increased operational costs relative to revenue[32]. Loans and Deposits - Total deposits decreased to$ 9.9 billion as of December 31, 2024, down from $10.3 billion at the end of Q3 2024[8]. - The loan to deposit ratio was 93.5% as of December 31, 2024, compared to 95.9% in the prior quarter[4]. - Loans held for investment decreased to$ 7,941.4 million as of December 31, 2024, from $10,177.8 million a year earlier[47]. - Total loans outstanding as of December 31, 2024, were$ 7,936,215, a decrease of 1.8% from $8,083,756 in the previous quarter[54]. - Loan originations for Q4 2024 were$ 364,475,000, slightly down from $366,313,000 in Q3 2024 but up from$ 338,829,000 in Q4 2023[51]. Capital and Assets - Total risk-based capital ratio improved to 13.87%, an increase of 160 basis points from the year-ago quarter[4]. - As of December 31, 2024, shareholders' equity totaled $1,053.4 million, a decrease from$ 1,069.8 million as of September 30, 2024, and $925.3 million as of December 31, 2023[39]. - Total assets as of December 31, 2024, were$ 12,645.3 million, down from $13,376.6 million as of September 30, 2024[47]. - Total liabilities decreased to$ 11,591.9 million as of December 31, 2024, from $12,306.8 million as of September 30, 2024[48]. - The tangible book value per common share decreased to$ 11.68 as of December 31, 2024, from $13.79 as of September 30, 2024[39]. Credit Quality - The allowance for credit losses to total loans held for investment increased to 0.41% as of December 31, 2024, following a$ 20.1 million provision for loan losses recorded during the quarter[8]. - Total nonperforming assets rose to $46.7 million, representing 0.37% of total assets, compared to 0.33% in the prior quarter[34]. - The allowance for credit losses for loans was$ 32.3 million, or 0.41% of total loans held for investment, up from 0.36% in the prior quarter[35]. - The provision for credit losses was $20,647,000 in Q4 2024, compared to a reversal of$ 282,000 in Q3 2024 and a provision of $229,000 in Q4 2023[49]. Market Recognition - First Foundation Advisors was recognized as a top registered advisory firm by Barron's and ranked seventeenth on CNBC's FA100 list[9].