First Foundation (US:FFWM)2024-05-09 18:35Financial Performance - For the quarter ended March 31, 2024, the Company reported net income of $793 thousand, a decrease from $2.5 million in Q4 2023 and $8.5 million in Q1 2023[143]. - Noninterest income for Q1 2024 totaled $12.7 million, compared to $13.9 million in Q4 2023 and $11.7 million in Q1 2023[143]. - Combined net income for Q1 2024 was $793 thousand, a decrease from $8.5 million in Q1 2023[150]. - Noninterest expense decreased to $50.6 million in Q1 2024, down from $55.9 million in Q4 2023 and $59.3 million in Q1 2023[143]. - Wealth Management net income before taxes increased by $0.4 million due to a decrease in noninterest expense[150]. Assets and Liabilities - Total assets increased to $13.6 billion at March 31, 2024, compared to $13.3 billion at December 31, 2023, primarily due to an increase in cash and cash equivalents[144]. - Total liabilities rose to $12.7 billion at March 31, 2024, driven by a $0.3 billion increase in borrowings, while deposits decreased slightly by $0.1 billion[145]. - Cash and cash equivalents increased by $261 million to $3.1 billion as of March 31, 2024, compared to December 31, 2023[173]. - Total loans decreased by $91 million to $10.1 billion, with loan fundings of $302 million offset by payments and payoffs of $393 million during Q1 2024[181]. - Total deposits decreased slightly by approximately $50 million to $10.6 billion at March 31, 2024, compared to $10.7 billion at December 31, 2023[185]. Interest Income and Expenses - Net interest income before provision for credit losses was $38.4 million for Q1 2024, down from $42.5 million in Q4 2023 and $58.8 million in Q1 2023, with a net interest margin of 1.17%[143]. - Interest income increased to $150.5 million in Q1 2024, compared to $137 million in Q1 2023, driven by higher average interest-earning asset balances and yields[157]. - Interest expense increased to $112.1 million for Q1 2024, up from $78.2 million in Q1 2023, driven by a 14.0% increase in average interest-bearing liabilities to $10.6 billion[158]. - The net interest rate spread decreased to 0.40% in Q1 2024 from 0.91% in Q1 2023[155]. Capital and Equity - The Company had total shareholders' equity of $928.7 million at March 31, 2024, reflecting a net gain in accumulated other comprehensive income of $2.7 million during the quarter[146]. - Shareholders' equity increased by $3.4 million in Q1 2024, primarily due to a reduction in accumulated other comprehensive loss[171]. - FFI's CET1 capital ratio was 10.20%, exceeding the required 4.50% for well-capitalized status[222]. - Total risk-based capital ratio for FFI was 12.49% as of March 31, 2024, exceeding the 8.00% minimum requirement[222]. Credit Losses and Provisions - The provision for credit losses was $0.6 million in Q1 2024, up from $0.4 million in the same quarter last year[152]. - The allowance for credit losses (ACL) for loans totaled $29.3 million as of March 31, 2024, compared to $31.1 million as of March 31, 2023[196]. - Total past due and nonaccrual loans amounted to $35,914 thousand as of March 31, 2024, representing 0.36% of total loans[195]. Dividends and Future Plans - The Company announced a quarterly cash dividend of $0.01 per common share to be paid on May 16, 2024[148]. - The Company intends to explore opportunities for growth, including opening additional offices or acquiring complementary businesses[228]. Operational Efficiency - Average quarterly Banking full-time equivalents (FTEs) decreased to 497.1 in Q1 2024 from 601.8 in Q1 2023, reflecting efforts to maximize efficiency[165]. - Noninterest expense in Banking decreased to $44.5 million in Q1 2024 from $51.6 million in Q1 2023, largely due to a $6.0 million decrease in customer service costs[166]. Liquidity and Cash Flow - The available liquidity ratio was 44.3% as of March 31, 2024, exceeding the minimum policy requirement of 25%[202]. - Operating activities provided net cash of $7.1 million during the quarter ended March 31, 2024, primarily due to net income of $793 thousand[203]. - Financing activities resulted in a net cash increase of $246 million, mainly from a net increase of $284 million in FHLB and FRB advances[205].