First Foundation (US:FFWM)2025-05-09 19:02Financial Performance - For the quarter ended March 31, 2025, the Company reported net income of $6.9 million, compared to a net loss of $14.1 million for the quarter ended December 31, 2024[144]. - Combined net income for Q1 2025 was $6.9 million, a significant increase from $793 thousand in Q1 2024[150]. - The company experienced a $6.4 million increase in combined net income before taxes, primarily due to a $6.7 million increase in net income in the Banking segment[150]. - The provision for credit losses totaled $3.4 million for the quarter ended March 31, 2025, significantly lower than $20.6 million for the quarter ended December 31, 2024[144]. - The provision for credit losses for Q1 2025 was $3.4 million, significantly higher than $577 thousand in the same quarter last year, reflecting increased reserves for the commercial loan portfolio[160]. Income and Expenses - Net interest income after provision for credit losses totaled $48.4 million for the quarter ended March 31, 2025, an increase from $30.7 million and $37.8 million for the quarters ended December 31, 2024 and March 31, 2024, respectively[144]. - Noninterest income totaled $19.6 million for the quarter ended March 31, 2025, compared to $13.4 million and $12.7 million for the quarters ended December 31, 2024 and March 31, 2024, respectively[144]. - Noninterest expense in Banking was $55.1 million for Q1 2025, compared to $44.5 million in the prior year, largely due to a $5.7 million increase in compensation and benefits[165]. - Noninterest expense in Wealth Management increased to $7.5 million in Q1 2025 from $5.7 million in Q1 2024, primarily driven by a $1.6 million rise in compensation and benefits[168]. Assets and Liabilities - Total assets remained essentially unchanged at $12.6 billion as of March 31, 2025, with a $0.2 billion increase in total investment securities offset by a $0.2 billion decrease in total loans[145]. - At March 31, 2025, total liabilities were $11.5 billion, a decrease from $11.6 billion at December 31, 2024, primarily due to a $0.3 billion decrease in deposits[146]. - Total shareholders' equity increased to $1.06 billion at March 31, 2025, from $1.05 billion at December 31, 2024[147]. - The company reported a total of $9.561 billion in deposits as of March 31, 2025, reflecting a decrease from the previous quarter[171]. - The company’s total loans held for investment amounted to $7.649 billion as of March 31, 2025[170]. Loan and Deposit Metrics - The loan to deposit ratio was 94.1% as of March 31, 2025, compared to 93.5% as of December 31, 2024[146]. - The allowance for credit losses on the loan portfolio was $35.2 million, or 0.46% of total loans held for investment, up from $32.3 million and 0.41% at the end of 2024[160]. - Total deposits decreased by approximately $309 million to $9.56 billion at March 31, 2025, largely due to a $400 million decrease in higher-cost brokered deposits[186]. - The weighted average rate for all interest-bearing deposits decreased to 2.93% at March 31, 2025, down from 3.09% at December 31, 2024[187]. Capital and Ratios - As of March 31, 2025, FFI's Common Equity Tier 1 ratio was 10.63%, exceeding the required 4.50%[225]. - FFB's Common Equity Tier 1 ratio was 13.29% as of March 31, 2025, significantly above the 4.50% minimum requirement[225]. - FFB had $594 million in excess capital above the well-capitalized requirement for the Common Equity Tier 1 ratio as of March 31, 2025[226]. - The Total Risk-Based Capital Ratio for FFB was 13.74% as of March 31, 2025, exceeding the 8.00% requirement[225]. - FFB's Tier 1 Leverage Ratio was 9.28% as of March 31, 2025, above the required 4.00%[225]. Strategic Initiatives - The company intends to explore opportunities for growth, including opening additional offices or acquiring complementary businesses[229]. - The company may seek additional borrowings or sell shares to raise funds for future growth opportunities[229].