First Foundation reports Q2 adjusted EPS (9c), consensus 2c

Reports Q1 revenue $51.4M, consensus $64.73M. Tangible book value per common share was $11.65 from $11.77 at previous quarter end. Q2 net interest margin was 1.68% vs. 1.67% in Q1 and 1.36% a year ago. CEO Thomas Shafer said, “First Foundation (FFWM) continues to execute on our strategy. Additionally, we are on track to completely exit our held-for-sale commercial real estate portfolio by the end of 2025. Our CRE concentration has improved materially from its high of over 600% and we have exited a meaningful portion of our high-cost deposits. This was a significant quarter in our continued progress, and we are confident the actions we have taken will lead to important improvements in our financial performance going forward. I remain excited for First Foundation’s future, and I am very appreciative of the team for their focus and execution on a host of critical initiatives.” CFO Jamie Britton said, “Q2 was one of significant progress, as we achieved reductions in both our held-for-sale portfolio and our highcost deposit concentrations. Underlying core margin, fee and expense trends were all stable or improved. The actions taken in the second quarter only had a partial benefit to NIM, but with the benefits we expect going forward we remain confident net interest margin will improve and reach a range of 1.80-1.90% by Q3 of 2025. Coupled with the Bank’s strong asset quality, capital ratios and liquidity levels, this improved financial performance will position our firm for continued success in the years ahead.”