First Foundation (US:FFWM)2024-04-25 11:06Financial Performance - Net income for Q1 2024 was $793 thousand, or $0.01 per share, a decrease from $2.5 million and $0.05 per share in Q4 2023[4] - For Q1 2024, First Foundation Inc. reported net income of $1,368,000, a decrease of 55.1% from $3,052,000 in Q4 2023 and a decrease of 86.8% from $10,343,000 in Q1 2023[53] - Net income for Q1 2024 was $793 thousand, a significant decrease from $2,548 thousand in Q4 2023, representing a decline of 68.9%[49] - The company reported a net loss of $1,761,000 in the Other and Eliminations segment for Q1 2024, an improvement from a loss of $1,958,000 in Q4 2023 and a loss of $2,709,000 in Q1 2023[53] - Adjusted net income attributable to common shareholders for Q1 2024 was $1,059,000, down 62.5% from $2,828,000 in Q4 2023 and down 87.4% from $8,382,000 in Q1 2023[65] Loan and Deposit Trends - Total loans decreased to $10.1 billion as of March 31, 2024, down from $10.2 billion in Q4 2023 and $10.7 billion in Q1 2023[11] - Total loans outstanding as of March 31, 2024, were $10,070,191,000, a decrease of 0.9% from $10,161,047,000 in Q4 2023 and a decrease of 5.5% from $10,653,108,000 in Q1 2023[54] - Total deposits were $10.6 billion as of March 31, 2024, compared to $10.7 billion in Q4 2023 and $10.1 billion in Q1 2023[16] - Total deposits as of March 31, 2024, were $10,638,970,000, a slight decrease of 0.5% from $10,688,932,000 in Q4 2023 but an increase of 5.8% from $10,051,706,000 in Q1 2023[54] - As of March 31, 2024, total deposits were composed of 36% brokered deposits, down from 40% in the prior quarter and 19% a year ago[17] Asset Quality - Nonperforming assets to total assets ratio was 0.18%, up from 0.15% in the previous quarter[6] - Total nonperforming assets increased to $24.0 million, up from $20.2 million in the prior quarter and $17.4 million a year ago[34] - The ratio of nonperforming assets to total assets was 0.18%, up from 0.15% in the prior quarter and 0.13% a year ago[35] - The allowance for credit losses for loans was $29.3 million, or 0.29% of total loans, unchanged from the prior quarter[36] Income and Expense Analysis - Net interest income was $38.4 million for the quarter, down from $42.5 million in the prior quarter and $58.8 million in Q1 2023[22] - Noninterest income was $12.7 million, compared to $13.9 million in the prior quarter and $11.7 million in Q1 2023[26] - The company reported total noninterest expense of $50,609,000 for Q1 2024, a decrease from $55,892,000 in Q4 2023 and $59,340,000 in Q1 2023[64] - Noninterest income for Q1 2024 was $12,683 thousand, slightly down from $13,876 thousand in Q4 2023, a decrease of 8.6%[49] Capital and Efficiency Ratios - The total risk-based capital ratio increased to 12.49% from 12.27% in the prior quarter[6] - The efficiency ratio (non-GAAP) for the quarter was 98.4%, slightly improved from 98.5% in the prior quarter but worse than 84.5% in Q1 2023[32] - The efficiency ratio for Q1 2024 was 98.4%, compared to 98.5% in Q4 2023, indicating stable operational efficiency[50] - Return on average assets for Q1 2024 was 0.02%, down from 0.08% in Q4 2023, reflecting a decline in profitability[50] - Return on average tangible common equity for Q1 2024 was 0.5%, down from 1.2% in Q4 2023 and down from 3.7% in Q1 2023[61] Interest and Yield Metrics - Net interest margin (NIM) was 1.17% for Q1 2024, down from 1.36% in Q4 2023, reflecting higher deposit costs[9] - The average yield on loans for Q1 2024 was 4.70%, unchanged from Q4 2023 and an increase from 4.54% in Q1 2023[56] - Total interest income rose to $150,453 thousand in Q1 2024, up from $146,598 thousand in Q4 2023, marking an increase of 1.9%[49] - Net interest income for Q1 2024 was $40,091,000, down 9.7% from $44,236,000 in Q4 2023 and down 33.8% from $60,551,000 in Q1 2023[53]