[February 04, 2016] |
|
First Foundation Announces 2015 Fourth Quarter and Annual Earnings
First Foundation Inc. (NASDAQ: FFWM), a financial services company with
two wholly-owned operating subsidiaries, First Foundation Advisors and
First Foundation Bank, which collectively provide investment management,
wealth planning, consulting, insurance, trust and banking services
primarily to high net-worth individuals and businesses, today reported
its financial results for the quarter and year ended December 31, 2015.
"First Foundation delivered positive results for both the fourth quarter
and the full year," said CEO Scott F. Kavanaugh. "The growth in revenue
and earnings continues to validate the strength of our comprehensive
platform as we build on our existing client relationships and attract
new clients. After making meaningful investments in infrastructure and
adding to the strength of our team in key areas, we are well-positioned
to continue to serve the complex and evolving needs of our clients as
well as enhance shareholder value."
Financial Highlights - Fourth Quarter 2015:
-
Net income for the fourth quarter of 2015 increased 68% as compared to
the fourth quarter of 2014 and 83% as compared to the third quarter of
2015. Net income for the quarter ended December 31, 2015 was $5.0
million, or $0.31 per fully diluted share, as compared to $3.0
million, or $0.37 per fully diluted share for the quarter ended
December 31, 2014 and as compared to $2.8 million or $0.21 for the
quarter ended September 30, 2015. The comparability of EPS is impacted
by the approximately 80% increase in share count resulting from the
public offering completed in the third quarter of 2015;
-
Total revenues, which consist of net interest income and noninterest
income, increased by $8.6 million and $4.4 million as compared to the
fourth quarter of 2014 and the third quarter of 2015, respectively,
due to higher levels of interest earning assets and a $2.7 million
gain on sale of $102 million of loans in the fourth quarter of 2015;
-
To support the Company's continuing growth and to leverage the
additional capital raised in the public offering, we have made
significant investments in staffing. As a result, noninterest expense
in the fourth quarter of 2015 was $4.1 million or 32% higher than the
fourth quarter of 2014. Noninterest expense was $0.2 million higher in
the fourth quarter of 2015 as compared to the third quarter of 2015 as
increased staffing and occupancy costs were offset by $0.3 million of
one-time costs related to the Pacific Rim Bank acquisition recognized
in the third quarter of 2015; and
-
During the fourth quarter, the Company recorded a provision for loan
losses of $1.2 million to provide for the $229 million growth in loans
from September 30, 2015 to December 31, 2015, an increase of 15%. This
compares to no provision for loan losses during the fourth quarter of
2014 and a $0.6 million provision for loan losses in the third quarter
of 2015. During the fourth quarter, the Company charged-off $1.9
million relating to the unsecured portion of a commercial loan made in
2010.
"We are very pleased with results, in particular our successful loan
sale and securitization that occurred in the fourth quarter of 2015 and
the relationship we established with Freddie Mac," stated David DePillo,
President of First Foundation Bank. "We anticipate we will have up to
two more loan sales and securitizations in 2016."
Financial Highlights - 2015:
-
For the year ended December 31, 2015, net income was $13.4 million, or
$1.16 per fully diluted share, as compared to $8.4 million, or $1.03
per fully diluted share for the year ended December 31, 2014, an
increase of 59% in net income. The comparability of EPS is impacted by
the approximately 80% increase in share count resulting from the
public offering completed in the third quarter of 2015;
-
The Company completed the acquisition of Pacific Rim Bank ("PRB") in
June 2015, resulting in the acquisition of $78 million of loans, $120
million of deposits and $4 million of real estate owned;
-
Total assets increased to $2.59 billion at December 31, 2015 from
$1.36 billion at December 31, 2014, an increase of 91%;
-
Loan originations in 2015 were $944 million not including the loans
acquired in the acquisition of PRB. As a result, even though $102
million of loans were sold in 2015, total loans increased by $599
million, a 51% increase;
-
Deposits, including deposits acquired from PRB, grew 58% during the
year to $1.5 billion, and our loan to deposit ratio decreased to 116%
at December 31, 2015 from 119% at December 31, 2014;
-
During the third and fourth quarters of 2015, the Company leveraged a
portion of the capital from the public offering through the purchase
of $439 million of agency guaranteed single family mortgage backed
securities which was primarily funded through borrowings from the FHLB;
-
The Company generated $554 million of assets under management ("AUM)
from new investment advisory accounts, and AUM increased 8% to $3.47
billion at December 31, 2015 from $3.22 billion at December 31, 2014;
-
Total revenues of $87.0 million for 2015, increased by $19.4 million,
or 29% as compared to 2014, as a result of higher levels of interest
earnings assets and $2.9 million of gain on sales of loans realized in
2015;
-
Noninterest expense increased $9.0 million or 17% during 2015 when
compared to 2014, due primarily to a 25% increase in full-time
equivalent employees during 2015 and the operating expenses associated
with the PRB acquisition;
-
The Company recorded a provision for loan losses of $2.7 million
during 2015 to provide for the $559 million growth in loans. This
compares to a $0.2 million provision for loan losses recorded during
2014. During 2015, the Company had total charge-offs of $2.2 million;
and
-
The Company completed a public offering of common stock in August
2015, raising $131 million (net of underwriters discount and offering
expenses). A portion of the proceeds were used to pay off a $30
million term loan.
-
Tangible book value increased from $12.66 per share at December 31,
2014 to $16.10 per share at December 31, 2015.
"We have experienced, and anticipate to continue to experience, strong
loan, deposit and AUM growth," stated John Michel, CFO. "To support our
growing operations, we have begun implementing new technology platforms
for processing and information gathering for which we expect to incur
approximately $0.5 million in one-time implementation costs in the first
quarter of 2016. We also expect our operating expenses in 2016 to be
impacted by our 2015 growth in staffing, as well as additional support
staff anticipated in 2016, and the related facility buildouts in
California. In addition, consistent with prior years, we expect our
noninterest expense to be impacted in the first quarter by the timing of
certain compensation costs, such as raises, employment taxes and
employer 401k matches," added Mr. Michel.
About First Foundation
First Foundation, a financial institution founded in 1990, provides
integrated investment management, wealth planning, consulting,
insurance, trust and banking services. The Company is headquartered in
Irvine, California with offices in Newport Beach, Pasadena, West Los
Angeles, Oakland, San Diego, Indian Wells and the Imperial Valley in
California, in Las Vegas, Nevada and in Honolulu, Hawaii. For more
information, please visit www.ff-inc.com.
Forward-Looking Statements
Statements in this news release regarding our expectations and beliefs
about our future financial performance and financial condition, as well
as trends in our business and markets are "forward-looking statements"
as defined in the Private Securities Litigation Reform Act of 1995.
Forward-looking statements often include words such as "believe,"
"expect," "anticipate," "intend," "plan," "estimate," "project," or
words of similar meaning, or future or conditional verbs such as "will,"
"would," "should," "could," or "may." The forward looking statements in
this news release are based on current information and on assumptions
that we make about future events and circumstances that are subject to a
number of risks and uncertainties that are often difficult to predict
and beyond our control. As a result of those risks and uncertainties,
our actual financial results in the future could differ, possibly
materially, from those expressed in or implied by the forward looking
statements contained in this news release and could cause us to make
changes to our future plans. Those risks and uncertainties include, but
are not limited to, the risk of incurring loan losses, which is an
inherent risk of the banking business; the risk that we will not be able
to continue our internal growth rate; the risk that we will not be able
to access the securitization market on favorable terms or at all; the
risk that the economic recovery in the United States will stall or will
be adversely affected by domestic or international economic conditions
and the risk that the Federal Reserve Board will continue to keep
interest rates low, any of which could adversely affect our interest
income and interest rate margins and, therefore, our future operating
results; the risk that the performance of our investment management
business or of the equity and bond markets could lead clients to move
their funds from or close their investment accounts with us, which would
reduce our assets under management and adversely affect our operating
results; and the risk that we do not successfully integrate Pacific Rim
Bank's business and customers or otherwise fail to achieve anticipated
business enhancements related to the acquisition. Additional information
regarding these and other risks and uncertainties to which our business
and future financial performance are subject is contained in Item 1A,
entitled "Risk Factors" in our 2014 Annual Report on Form 10-K for the
fiscal year ended December 31, 2014 that we filed with the SEC on March
16, 2015, and other documents we file with the SEC from time to time. We
urge readers of this news release to review the Risk Factors section of
that Annual Report. Also, our actual financial results in the future may
differ from those currently expected due to additional risks and
uncertainties of which we are not currently aware or which we do not
currently view as, but in the future may become, material to our
business or operating results. Due to these and other possible
uncertainties and risks, readers are cautioned not to place undue
reliance on the forward-looking statements contained in this news
release, which speak only as of today's date, or to make predictions
based solely on historical financial performance. We also disclaim any
obligation to update forward-looking statements contained in this news
release or in the above-referenced 2014 Annual Report on Form 10-K,
whether as a result of new information, future events or otherwise,
except as may be required by law or NASDAQ rules.
|
FIRST FOUNDATION INC.
|
CONSOLIDATED BALANCE SHEETS - Unaudited
|
(in thousands, except share and per share amounts)
|
|
|
|
|
|
|
|
|
|
|
December 31, 2015
|
|
|
December 31, 2014
|
ASSETS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents
|
|
|
$
|
215,748
|
|
|
|
$
|
29,692
|
|
Securities available-for-sale ("AFS")
|
|
|
|
565,135
|
|
|
|
|
138,270
|
|
Loans held for sale
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans, net of deferred fees
|
|
|
|
1,765,483
|
|
|
|
|
1,166,392
|
|
Allowance for loan and lease losses ("ALLL")
|
|
|
|
(10,600
|
)
|
|
|
|
(10,150
|
)
|
Net loans
|
|
|
|
1,754,883
|
|
|
|
|
1,156,242
|
|
|
|
|
|
|
|
|
|
|
|
|
Investment in FHLB stock
|
|
|
|
21,492
|
|
|
|
|
12,361
|
|
Deferred taxes
|
|
|
|
15,392
|
|
|
|
|
9,748
|
|
Premises and equipment, net
|
|
|
|
2,653
|
|
|
|
|
2,187
|
|
Real estate owned ("REO")
|
|
|
|
4,036
|
|
|
|
|
334
|
|
Goodwill and intangibles
|
|
|
|
2,416
|
|
|
|
|
197
|
|
Other assets
|
|
|
|
10,824
|
|
|
|
|
6,393
|
|
Total Assets
|
|
|
$
|
2,592,579
|
|
|
|
$
|
1,355,424
|
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND SHAREHOLDERS' EQUITY
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities:
|
|
|
|
|
|
|
|
|
|
|
Deposits
|
|
|
$
|
1,522,176
|
|
|
|
$
|
962,954
|
|
Borrowings
|
|
|
|
796,000
|
|
|
|
|
282,886
|
|
Accounts payable and other liabilities
|
|
|
|
14,667
|
|
|
|
|
10,088
|
|
Total Liabilities
|
|
|
|
2,332,843
|
|
|
|
|
1,255,928
|
|
|
|
|
|
|
|
|
|
|
|
|
Commitments and contingencies
|
|
|
|
-
|
|
|
|
|
-
|
|
Shareholders' Equity
|
|
|
|
|
|
|
|
|
|
|
Common Stock, par value $.001: 70,000,000 shares authorized;
15,980,526 and 7,845,182 shares issued and outstanding at December
31, 2015 and December 31, 2014, respectively
|
|
|
|
16
|
|
|
|
|
8
|
|
Additional paid-in-capital
|
|
|
|
227,262
|
|
|
|
|
78,204
|
|
Retained earnings
|
|
|
|
33,762
|
|
|
|
|
20,384
|
|
Accumulated other comprehensive income (loss), net of tax
|
|
|
|
(1,304
|
)
|
|
|
|
900
|
|
Total Shareholders' Equity
|
|
|
|
259,736
|
|
|
|
|
99,496
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Liabilities and Shareholders' Equity
|
|
|
$
|
2,592,579
|
|
|
|
$
|
1,355,424
|
|
|
|
|
|
|
|
|
|
|
|
|
|
FIRST FOUNDATION INC.
|
CONSOLIDATED INCOME STATEMENTS - Unaudited
|
(in thousands, except share and per share amounts)
|
|
|
|
|
|
|
|
|
|
|
For the Quarter Ended December 31,
|
|
|
For the Year Ended December 31,
|
|
|
|
2015
|
|
|
2014
|
|
|
2015
|
|
|
2014
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest income:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans
|
|
|
$
|
16,384
|
|
|
|
$
|
12,405
|
|
|
|
$
|
57,481
|
|
|
|
$
|
44,140
|
Securities
|
|
|
|
2,483
|
|
|
|
|
804
|
|
|
|
|
5,227
|
|
|
|
|
2,545
|
FHLB Stock, fed funds sold and deposits
|
|
|
|
345
|
|
|
|
|
199
|
|
|
|
|
1,763
|
|
|
|
|
713
|
Total interest income
|
|
|
|
19,212
|
|
|
|
|
13,408
|
|
|
|
|
64,471
|
|
|
|
|
47,398
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits
|
|
|
|
1,520
|
|
|
|
|
991
|
|
|
|
|
4,886
|
|
|
|
|
3,586
|
Borrowings
|
|
|
|
258
|
|
|
|
|
316
|
|
|
|
|
1,395
|
|
|
|
|
998
|
Total interest expense
|
|
|
|
1,778
|
|
|
|
|
1,307
|
|
|
|
|
6,281
|
|
|
|
|
4,584
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income
|
|
|
|
17,434
|
|
|
|
|
12,101
|
|
|
|
|
58,190
|
|
|
|
|
42,814
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Provision for loan losses
|
|
|
|
1,200
|
|
|
|
|
-
|
|
|
|
|
2,673
|
|
|
|
|
235
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income after provision for loan losses
|
|
|
|
16,234
|
|
|
|
|
12,101
|
|
|
|
|
55,517
|
|
|
|
|
42,579
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest income:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Asset management, consulting and other fees
|
|
|
|
5,844
|
|
|
|
|
5,745
|
|
|
|
|
23,486
|
|
|
|
|
21,798
|
Gain on sale of loans
|
|
|
|
2,730
|
|
|
|
|
-
|
|
|
|
|
2,935
|
|
|
|
|
-
|
Other income
|
|
|
|
707
|
|
|
|
|
300
|
|
|
|
|
2,352
|
|
|
|
|
2,951
|
Total noninterest income
|
|
|
|
9,281
|
|
|
|
|
6,045
|
|
|
|
|
28,773
|
|
|
|
|
24,749
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest expense:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Compensation and benefits
|
|
|
|
11,016
|
|
|
|
|
8,272
|
|
|
|
|
40,456
|
|
|
|
|
33,550
|
Occupancy and depreciation
|
|
|
|
2,774
|
|
|
|
|
1,826
|
|
|
|
|
9,260
|
|
|
|
|
7,325
|
Professional services and marketing costs
|
|
|
|
1,439
|
|
|
|
|
1,455
|
|
|
|
|
5,490
|
|
|
|
|
5,995
|
Other expenses
|
|
|
|
1,941
|
|
|
|
|
1,442
|
|
|
|
|
6,252
|
|
|
|
|
5,637
|
Total noninterest expense
|
|
|
|
17,170
|
|
|
|
|
12,995
|
|
|
|
|
61,458
|
|
|
|
|
52,507
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income before taxes on income
|
|
|
|
8,345
|
|
|
|
|
5,151
|
|
|
|
|
22,832
|
|
|
|
|
14,821
|
Taxes on income
|
|
|
|
3,297
|
|
|
|
|
2,145
|
|
|
|
|
9,454
|
|
|
|
|
6,427
|
Net income
|
|
|
$
|
5,048
|
|
|
|
$
|
3,006
|
|
|
|
$
|
13,378
|
|
|
|
$
|
8,394
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income per share:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
$
|
0.32
|
|
|
|
$
|
0.39
|
|
|
|
$
|
1.20
|
|
|
|
$
|
1.08
|
Diluted
|
|
|
$
|
0.31
|
|
|
|
$
|
0.37
|
|
|
|
$
|
1.16
|
|
|
|
$
|
1.03
|
Shares used in computation:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
|
15,965,004
|
|
|
|
|
7,740,940
|
|
|
|
|
11,155,007
|
|
|
|
|
7,737,036
|
Diluted
|
|
|
|
16,461,398
|
|
|
|
|
8,195,144
|
|
|
|
|
11,575,855
|
|
|
|
|
8,166,343
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
FIRST FOUNDATION INC.
|
SELECTED FINANCIAL INFORMATION - Unaudited
|
(in thousands, except share and per share amounts)
|
|
|
|
|
|
|
|
|
|
|
For the Quarter Ended December 31,
|
|
|
For the Year Ended December 31,
|
|
|
|
2015
|
|
|
2014
|
|
|
2015
|
|
|
2014
|
Selected Income Statement Data:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income
|
|
|
$
|
17,434
|
|
|
|
$
|
12,101
|
|
|
|
$
|
58,190
|
|
|
|
$
|
42,814
|
|
Provision for loan losses
|
|
|
|
1,200
|
|
|
|
|
-
|
|
|
|
|
2,673
|
|
|
|
|
235
|
|
Noninterest Income:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Asset management, consulting and other fees
|
|
|
|
5,844
|
|
|
|
|
5,745
|
|
|
|
|
23,486
|
|
|
|
|
21,798
|
|
Gain on sale of loans
|
|
|
|
2,730
|
|
|
|
|
-
|
|
|
|
|
2,935
|
|
|
|
|
-
|
|
Other
|
|
|
|
707
|
|
|
|
|
300
|
|
|
|
|
2,352
|
|
|
|
|
2,951
|
|
Noninterest expense
|
|
|
|
17,170
|
|
|
|
|
12,995
|
|
|
|
|
61,458
|
|
|
|
|
52,507
|
|
Income before taxes
|
|
|
|
8,345
|
|
|
|
|
5,151
|
|
|
|
|
22,832
|
|
|
|
|
14,821
|
|
Net income
|
|
|
|
5,048
|
|
|
|
|
3,006
|
|
|
|
|
13,378
|
|
|
|
|
8,394
|
|
Net income per share:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
$
|
0.32
|
|
|
|
$
|
0.39
|
|
|
|
$
|
1.20
|
|
|
|
$
|
1.08
|
|
Diluted
|
|
|
|
0.31
|
|
|
|
|
0.37
|
|
|
|
|
1.16
|
|
|
|
|
1.03
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selected Performance Ratios:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on average assets - annualized
|
|
|
|
0.91
|
%
|
|
|
|
0.91
|
%
|
|
|
|
0.76
|
%
|
|
|
|
0.71
|
%
|
Return on average equity - annualized
|
|
|
|
7.8
|
%
|
|
|
|
12.5
|
%
|
|
|
|
8.1
|
%
|
|
|
|
9.1
|
%
|
Net yield on interest-earning assets
|
|
|
|
3.26
|
%
|
|
|
|
3.76
|
%
|
|
|
|
3.39
|
%
|
|
|
|
3.70
|
%
|
Efficiency ratio (2)
|
|
|
|
64.3
|
%
|
|
|
|
71.6
|
%
|
|
|
|
70.7
|
%
|
|
|
|
76.0
|
%
|
Noninterest income as a % of total revenues
|
|
|
|
34.7
|
%
|
|
|
|
33.3
|
%
|
|
|
|
33.1
|
%
|
|
|
|
36.6
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other Information:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loan originations
|
|
|
$
|
318,060
|
|
|
|
$
|
113,903
|
|
|
|
$
|
944,188
|
|
|
|
$
|
503,793
|
|
Charge-offs to average loans - annualized
|
|
|
|
0.15
|
%
|
|
|
|
0.00
|
%
|
|
|
|
0.46
|
%
|
|
|
|
0.00
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31, 2015
|
|
|
December 31, 2014
|
|
|
|
|
|
|
|
|
|
|
|
Selected Balance Sheet Data:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents
|
|
|
$
|
215,748
|
|
|
|
$
|
29,692
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans, net of deferred fees
|
|
|
|
1,765,483
|
|
|
|
|
1,166,392
|
|
|
|
|
|
|
|
|
|
|
|
|
Allowance for loan and lease losses ("ALLL")
|
|
|
|
(10,600
|
)
|
|
|
|
(10,150
|
)
|
|
|
|
|
|
|
|
|
|
|
|
Total assets
|
|
|
|
2,592,579
|
|
|
|
|
1,355,424
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest-bearing deposits
|
|
|
|
299,794
|
|
|
|
|
246,137
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing deposits
|
|
|
|
1,222,382
|
|
|
|
|
716,817
|
|
|
|
|
|
|
|
|
|
|
|
|
Borrowings - FHLB Advances
|
|
|
|
796,000
|
|
|
|
|
263,000
|
|
|
|
|
|
|
|
|
|
|
|
|
Borrowings - term note
|
|
|
|
-
|
|
|
|
|
19,886
|
|
|
|
|
|
|
|
|
|
|
|
|
Shareholders' equity
|
|
|
|
259,736
|
|
|
|
|
99,496
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selected Capital Data:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tangible common equity to tangible assets(1)
|
|
|
|
9.93
|
%
|
|
|
|
7.33
|
%
|
|
|
|
|
|
|
|
|
|
|
|
Tangible book value per share(1)
|
|
|
$
|
16.10
|
|
|
|
$
|
12.66
|
|
|
|
|
|
|
|
|
|
|
|
|
Shares outstanding at end of period
|
|
|
|
15,980,526
|
|
|
|
|
7,845,182
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other Information:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Assets under management (end of period)
|
|
|
$
|
3,471,237
|
|
|
|
$
|
3,221,674
|
|
|
|
|
|
|
|
|
|
|
|
|
Number of employees
|
|
|
|
295
|
|
|
|
|
211
|
|
|
|
|
|
|
|
|
|
|
|
|
Loan to deposit ratio
|
|
|
|
116.0
|
%
|
|
|
|
118.9
|
%
|
|
|
|
|
|
|
|
|
|
|
|
Nonperforming assets to total assets
|
|
|
|
0.32
|
%
|
|
|
|
0.11
|
%
|
|
|
|
|
|
|
|
|
|
|
|
Ratio of ALLL to loans(3)
|
|
|
|
0.61
|
%
|
|
|
|
0.87
|
%
|
(1)
|
|
Tangible common equity, (also referred to as tangible book value)
and tangible assets, are equal to common equity and assets,
respectively, less $2.4 million and $0.2 million of intangible
assets as of December 31, 2015 and December 31, 2014, respectively.
|
(2)
|
|
The efficiency ratio is the ratio of noninterest expense to the sum
of net interest income and noninterest income.
|
(3)
|
|
This ratio excludes loans acquired in an acquisition as GAAP
requires estimated credit losses for acquired loans to be recorded
as discounts to those loans.
|
|
|
|
|
FIRST FOUNDATION INC.
|
SEGMENT REPORTING - Unaudited
|
(in thousands)
|
|
|
|
|
|
|
|
|
|
|
For the Quarter Ended December 31,
|
|
|
For the Year Ended December 31,
|
|
|
|
2015
|
|
|
2014
|
|
|
2015
|
|
|
2014
|
Banking:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest income
|
|
|
$
|
19,212
|
|
|
|
$
|
13,408
|
|
|
|
$
|
64,471
|
|
|
|
$
|
47,398
|
|
Interest expense
|
|
|
|
1,778
|
|
|
|
|
1,091
|
|
|
|
|
5,607
|
|
|
|
|
3,844
|
|
Net interest income
|
|
|
|
17,434
|
|
|
|
|
12,317
|
|
|
|
|
58,864
|
|
|
|
|
43,554
|
|
Provision for loan losses
|
|
|
|
1,200
|
|
|
|
|
-
|
|
|
|
|
2,673
|
|
|
|
|
235
|
|
Noninterest income
|
|
|
|
4,332
|
|
|
|
|
1,172
|
|
|
|
|
8,833
|
|
|
|
|
5,866
|
|
Noninterest expense
|
|
|
|
11,844
|
|
|
|
|
7,736
|
|
|
|
|
39,982
|
|
|
|
|
30,509
|
|
Income before taxes on income
|
|
|
$
|
8,722
|
|
|
|
$
|
5,753
|
|
|
|
$
|
25,042
|
|
|
|
$
|
18,676
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Wealth Management:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest income
|
|
|
$
|
5,104
|
|
|
|
$
|
5,022
|
|
|
|
$
|
20,530
|
|
|
|
$
|
19,422
|
|
Noninterest expense
|
|
|
|
4,402
|
|
|
|
|
4,403
|
|
|
|
|
18,352
|
|
|
|
|
17,979
|
|
Income before taxes on income
|
|
|
$
|
702
|
|
|
|
$
|
619
|
|
|
|
$
|
2,178
|
|
|
|
$
|
1,443
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other and Eliminations:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest income
|
|
|
$
|
-
|
|
|
|
$
|
-
|
|
|
|
$
|
-
|
|
|
|
$
|
-
|
|
Interest expense
|
|
|
|
-
|
|
|
|
|
216
|
|
|
|
|
674
|
|
|
|
|
740
|
|
Net interest income
|
|
|
|
-
|
|
|
|
|
(216
|
)
|
|
|
|
(674
|
)
|
|
|
|
(740
|
)
|
Noninterest income
|
|
|
|
(155
|
)
|
|
|
|
(149
|
)
|
|
|
|
(590
|
)
|
|
|
|
(539
|
)
|
Noninterest expense
|
|
|
|
924
|
|
|
|
|
856
|
|
|
|
|
3,124
|
|
|
|
|
4,019
|
|
Income before taxes on income
|
|
|
$
|
(1,079
|
)
|
|
|
$
|
(1,221
|
)
|
|
|
$
|
(4,388
|
)
|
|
|
$
|
(5,298
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
FIRST FOUNDATION INC.
|
ROLLING INCOME STATEMENTS - Unaudited
|
(in thousands, except share and per share amounts)
|
|
|
|
|
|
|
|
For the Quarter Ended
|
|
|
|
December 31, 2014
|
|
|
March 31, 2015
|
|
|
June 30, 2015
|
|
|
September 30, 2015
|
|
|
December 31, 2015
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest income:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans
|
|
|
$
|
12,405
|
|
|
|
$
|
12,101
|
|
|
|
$
|
13,362
|
|
|
|
$
|
15,634
|
|
|
|
$
|
16,384
|
Securities
|
|
|
|
804
|
|
|
|
|
815
|
|
|
|
|
822
|
|
|
|
|
1,107
|
|
|
|
|
2,483
|
FHLB Stock, fed funds sold and deposits
|
|
|
|
199
|
|
|
|
|
242
|
|
|
|
|
809
|
|
|
|
|
367
|
|
|
|
|
345
|
Total interest income
|
|
|
|
13,408
|
|
|
|
|
13,158
|
|
|
|
|
14,993
|
|
|
|
|
17,108
|
|
|
|
|
19,212
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits
|
|
|
|
991
|
|
|
|
|
923
|
|
|
|
|
1,115
|
|
|
|
|
1,328
|
|
|
|
|
1,520
|
Borrowings
|
|
|
|
316
|
|
|
|
|
364
|
|
|
|
|
454
|
|
|
|
|
319
|
|
|
|
|
258
|
Total interest expense
|
|
|
|
1,307
|
|
|
|
|
1,287
|
|
|
|
|
1,569
|
|
|
|
|
1,647
|
|
|
|
|
1,778
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income
|
|
|
|
12,101
|
|
|
|
|
11,871
|
|
|
|
|
13,424
|
|
|
|
|
15,461
|
|
|
|
|
17,434
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Provision for loan losses
|
|
|
|
-
|
|
|
|
|
150
|
|
|
|
|
753
|
|
|
|
|
570
|
|
|
|
|
1,200
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income after provision for loan losses
|
|
|
|
12,101
|
|
|
|
|
11,721
|
|
|
|
|
12,671
|
|
|
|
|
14,891
|
|
|
|
|
16,234
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest income:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Asset management, consulting and other fees
|
|
|
|
5,745
|
|
|
|
|
5,850
|
|
|
|
|
5,922
|
|
|
|
|
5,870
|
|
|
|
|
5,844
|
Gain on sale of loans
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
205
|
|
|
|
|
2,730
|
Other income
|
|
|
|
300
|
|
|
|
|
354
|
|
|
|
|
498
|
|
|
|
|
793
|
|
|
|
|
707
|
Total noninterest income
|
|
|
|
6,045
|
|
|
|
|
6,204
|
|
|
|
|
6,420
|
|
|
|
|
6,868
|
|
|
|
|
9,281
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest expense:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Compensation and benefits
|
|
|
|
8,272
|
|
|
|
|
9,180
|
|
|
|
|
9,390
|
|
|
|
|
10,870
|
|
|
|
|
11,016
|
Occupancy and depreciation
|
|
|
|
1,826
|
|
|
|
|
1,957
|
|
|
|
|
1,968
|
|
|
|
|
2,561
|
|
|
|
|
2,774
|
Professional services and marketing costs
|
|
|
|
1,455
|
|
|
|
|
1,058
|
|
|
|
|
1,512
|
|
|
|
|
1,481
|
|
|
|
|
1,439
|
Other expenses
|
|
|
|
1,442
|
|
|
|
|
1,163
|
|
|
|
|
1,104
|
|
|
|
|
2,044
|
|
|
|
|
1,941
|
Total noninterest expense
|
|
|
|
12,995
|
|
|
|
|
13,358
|
|
|
|
|
13,974
|
|
|
|
|
16,956
|
|
|
|
|
17,170
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income before taxes on income
|
|
|
|
5,151
|
|
|
|
|
4,567
|
|
|
|
|
5,117
|
|
|
|
|
4,803
|
|
|
|
|
8,345
|
Taxes on income
|
|
|
|
2,145
|
|
|
|
|
1,941
|
|
|
|
|
2,175
|
|
|
|
|
2,041
|
|
|
|
|
3,297
|
Net income
|
|
|
$
|
3,006
|
|
|
|
$
|
2,626
|
|
|
|
$
|
2,942
|
|
|
|
$
|
2,762
|
|
|
|
$
|
5,048
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income per share:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
$
|
0.39
|
|
|
|
$
|
0.33
|
|
|
|
$
|
0.36
|
|
|
|
$
|
0.22
|
|
|
|
$
|
0.32
|
Diluted
|
|
|
$
|
0.37
|
|
|
|
$
|
0.32
|
|
|
|
$
|
0.35
|
|
|
|
$
|
0.21
|
|
|
|
$
|
0.31
|
Shares used in computation:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
|
7,744,940
|
|
|
|
|
7,855,457
|
|
|
|
|
8,070,386
|
|
|
|
|
12,623,924
|
|
|
|
|
15,965,004
|
Diluted
|
|
|
|
8,195,144
|
|
|
|
|
8,211,145
|
|
|
|
|
8,425,029
|
|
|
|
|
13,074,935
|
|
|
|
|
16,461,398
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
FIRST FOUNDATION INC.
|
|
|
|
|
|
|
|
|
SELECTED INFORMATION: INTEREST MARGIN - Unaudited
|
|
|
|
|
|
|
|
|
(in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Quarter Ended December 31,
|
|
|
For the Year Ended December 31,
|
|
|
|
|
|
|
|
|
|
|
|
2015
|
|
|
2014
|
|
|
2015
|
|
|
2014
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average Balances:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans
|
|
|
$
|
1,663,406
|
|
|
|
$
|
1,128,092
|
|
|
|
$
|
1,450,081
|
|
|
|
$
|
1,016,374
|
|
|
|
|
|
|
|
|
|
Securities
|
|
|
|
433,713
|
|
|
|
|
134,371
|
|
|
|
|
224,906
|
|
|
|
|
105,755
|
|
|
|
|
|
|
|
|
|
Deposits (noninterest and interest bearing)
|
|
|
|
1,426,134
|
|
|
|
|
964,646
|
|
|
|
|
1,197,709
|
|
|
|
|
882,947
|
|
|
|
|
|
|
|
|
|
Borrowings
|
|
|
|
472,978
|
|
|
|
|
234,487
|
|
|
|
|
369,225
|
|
|
|
|
192,768
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average Yield / Rate:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans
|
|
|
|
3.93
|
%
|
|
|
|
4.39
|
%
|
|
|
|
3.96
|
%
|
|
|
|
4.34
|
%
|
|
|
|
|
|
|
|
|
Securities
|
|
|
|
2.29
|
%
|
|
|
|
2.37
|
%
|
|
|
|
2.32
|
%
|
|
|
|
2.41
|
%
|
|
|
|
|
|
|
|
|
Deposits (noninterest and interest bearing)
|
|
|
|
0.42
|
%
|
|
|
|
0.41
|
%
|
|
|
|
0.41
|
%
|
|
|
|
0.41
|
%
|
|
|
|
|
|
|
|
|
Borrowings
|
|
|
|
0.22
|
%
|
|
|
|
0.54
|
%
|
|
|
|
0.38
|
%
|
|
|
|
0.52
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Interest Rate Spread
|
|
|
|
3.14
|
%
|
|
|
|
3.61
|
%
|
|
|
|
3.27
|
%
|
|
|
|
3.56
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Yield on Interest-earning Assets
|
|
|
|
3.26
|
%
|
|
|
|
3.76
|
%
|
|
|
|
3.39
|
%
|
|
|
|
3.70
|
%
|
|
|
|
For the Quarter Ended
|
|
|
|
December 31, 2014
|
|
|
March 31, 2015
|
|
|
June 30, 2015
|
|
|
September 30, 2015
|
|
|
December 31, 2015
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average Balances:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans
|
|
|
$
|
1,016,374
|
|
|
|
$
|
1,201,965
|
|
|
|
$
|
1,365,682
|
|
|
|
$
|
1,562,960
|
|
|
|
$
|
1,663,406
|
|
Securities
|
|
|
|
105,755
|
|
|
|
|
135,526
|
|
|
|
|
137,382
|
|
|
|
|
190,107
|
|
|
|
|
433,713
|
|
Deposits(noninterest and interest bearing)
|
|
|
|
882,947
|
|
|
|
|
968,902
|
|
|
|
|
1,091,400
|
|
|
|
|
1,298,268
|
|
|
|
|
1,426,134
|
|
Borrowings
|
|
|
|
192,768
|
|
|
|
|
305,906
|
|
|
|
|
362,544
|
|
|
|
|
334,022
|
|
|
|
|
472,978
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average Yield / Rate:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans
|
|
|
|
4.34
|
%
|
|
|
|
4.03
|
%
|
|
|
|
3.92
|
%
|
|
|
|
4.00
|
%
|
|
|
|
3.93
|
%
|
Securities
|
|
|
|
2.41
|
%
|
|
|
|
2.41
|
%
|
|
|
|
2.39
|
%
|
|
|
|
2.33
|
%
|
|
|
|
2.29
|
%
|
Deposits (noninterest and interest bearing)
|
|
|
|
0.41
|
%
|
|
|
|
0.39
|
%
|
|
|
|
0.41
|
%
|
|
|
|
0.41
|
%
|
|
|
|
0.42
|
%
|
Borrowings
|
|
|
|
0.52
|
%
|
|
|
|
0.48
|
%
|
|
|
|
0.50
|
%
|
|
|
|
0.38
|
%
|
|
|
|
0.22
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Interest Rate Spread
|
|
|
|
3.56
|
%
|
|
|
|
3.35
|
%
|
|
|
|
3.34
|
%
|
|
|
|
3.30
|
%
|
|
|
|
3.14
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Yield on Interest-earning Assets
|
|
|
|
3.70
|
%
|
|
|
|
3.48
|
%
|
|
|
|
3.47
|
%
|
|
|
|
3.43
|
%
|
|
|
|
3.26
|
%
|
View source version on businesswire.com: http://www.businesswire.com/news/home/20160204005459/en/
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