First Foundation Announces First Quarter Results
IRVINE, Calif.--(BUSINESS WIRE)--First Foundation Inc., a financial services company that provides investment management, wealth planning, consulting, trust, banking and insurance services primarily to high-net-worth individuals and businesses, today announced its financial results for the first quarter of 2014.
Net income for the first quarter of 2014 for First Foundation, which has two wholly-owned operating subsidiaries, First Foundation Advisors and First Foundation Bank, was $1.5 million, an increase of 38% from the first quarter of 2013. For the first quarter of 2014, total revenues were 20% higher as compared to the first quarter of 2013 and the provision for loan losses was $0.4 million lower. During the first quarter of 2014, assets under management at First Foundation Advisors increased 31% on an annualized basis, and consolidated loans and deposits increased 20% and 26%, respectively, on an annualized basis.
“We are extremely pleased with our results for the first quarter of 2014,” stated Scott Kavanaugh, Chief Executive Officer of First Foundation. “These results demonstrate our ability to increase earnings even as we continue to make significant investments in the growth of our operations. We look forward to our continued growth and we anticipate that future increases in revenues will be in excess of future increases in noninterest expenses, resulting in increasing returns to our shareholders,” Mr. Kavanaugh added.
A summary of the financial results for the first quarter of 2014 is included with this press release. Our Quarterly Report on Form 10-Q for the First Quarter of 2014 and our 2013 Annual Report on Form 10-K have been filed with the SEC and are available on our website (“ff-inc.com”) under the investor relations tab and are also available at the SEC website at www.sec.gov/edgar/searchedgar/companysearch.html.
About First Foundation
First Foundation, a financial institution founded in 1990, provides integrated investment management, wealth planning, consulting, trust and banking services. The company is headquartered in Irvine with offices in Irvine, Newport Beach, Pasadena, West Los Angeles, San Diego, Palm Desert and the Imperial Valley in California, and Las Vegas, Nevada. For more information, please visit our website at www.ff-inc.com.
This press release contains “forward-looking statements” including statements expressing our expectations and beliefs about our business, our future financial performance and our future plans. Those statements are based on current information and on assumptions that we make about future events and circumstances and are subject to risks and uncertainties that are often difficult to predict and beyond the Company’s control. Moreover, our business and our markets are subject to a number of risks and uncertainties which could cause our actual financial results in the future to differ, possibly materially, from those expressed in 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 the risk of incurring loan losses, which is an inherent risk of the banking business, 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, and 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. Additional information regarding these and other risks and uncertainties to which our business and future financial performance are subject is contained in our 2013 Annual Report on Form 10-K that we filed with the SEC on March 25, 2014, and readers of this news release are urged to review the additional information contained in that Annual Report.
FIRST FOUNDATION INC
|Cash and cash equivalents||$||50,287||$||56,954|
|Securities available-for-sale (“AFS”)||73,257||59,111|
Loans, net of deferred fees
|Allowance for loan and lease losses (“ALLL”)||
Premises and equipment, net
|Investment in FHLB stock||6,580||6,721|
|Real estate owned (“REO”)||1,875||375|
|LIABILITIES AND SHAREHOLDERS’ EQUITY|
|Accounts payable and other liabilities||5,948||7,498|
|Commitments and contingencies||-||-|
|Common Stock, par value $.001: 20,000,000 shares authorized; 7,733,514 shares issued and outstanding at March 31, 2014 and December 31, 2013, respectively||8||8|
|Accumulated other comprehensive income (loss), net of tax||
|Total Shareholders’ Equity||88,841||86,762|
|Total Liabilities and Shareholders’ Equity||$||1,090,348||$||1,037,360|
FIRST FOUNDATION INC
For the Quarter Ended
|Fed funds sold and interest-bearing deposits||179||62|
|Total interest income||10,675||9,004|
|Total interest expense||925||812|
|Net interest income||9,750||8,192|
|Provision for loan losses||235||622|
|Net interest income after provision for loan losses||9,515||7,570|
|Asset management, consulting and other fees||5,039||4,286|
|Total noninterest income||5,551||4,533|
|Compensation and benefits||8,480||7,252|
|Occupancy and depreciation||1,828||1,323|
|Professional services and marketing costs||1,249||1,045|
|Total noninterest expense||12,546||10,396|
|Income before taxes on income||2,520||1,707|
|Taxes on income||1,058||649|
|Net income per share:|
|Shares used in computation:|
FIRST FOUNDATION INC
As of and for the
As of and for the Quarter Ended
|(In thousands, except share and per share data)||Unaudited||Unaudited|
|Selected Income Statement Data:|
|Net interest income||$||9,750||$||8,192||$||35,674|
|Provision for loan losses||235||622||2,395|
|Asset management, consulting and other fees||5,039||4,286||18,240|
|Income before taxes||2,520||1,707||9,481|
|Share and Per Share Data:|
|Net income per share:|
|Tangible book value per share(2)||$||11.46||$||10.15||$||11.18|
|Shares outstanding at end of period||7,733,514||7,409,860||7,733,514|
|Selected Balance Sheet Data:|
|Cash and cash equivalents||$||50,287||$||42,443||$||56,954|
|Loans, net of deferred fees||948,844||785,760||903,645|
|Allowance for loan and lease losses (“ALLL”)||(10,150||)||(8,210||)||(9,915||)|
|Borrowings - FHLB Advances||119,000||85,000||134,000|
|Borrowings – term note||21,875||-||7,063|
|Selected Performance and Capital Ratios:|
|Return on average assets - annualized||0.55||%||0.51||%||0.86||%|
|Return on average equity - annualized||6.6||%||5.7||%||10.2||%|
|Net yield on interest-earning assets||3.76||%||4.16||%||4.04||%|
|Efficiency ratio (3)||82.0||%||81.7||%||78.6||%|
|Noninterest income as a % of total revenues||36.3||%||35.6||%||35.7||%|
|Tangible common equity to tangible assets(2)||8.13||%||8.65||%||8.34||%|
|Assets under management (end of period)||$||2,797,562||$||2,372,056||$||2,594,961|
|NPAs to total assets||
|Charge-offs to average loans - annualized||0.00||%||0.40||%||0.10||%|
|Ratio of ALLL to loans(4)||1.08||%||1.15||%||1.16||%|
Reflects an effective tax rate of 42.0%, 38.0% and 17.2% for the quarters ended March 31, 2014 and 2013, and the year ended December 31, 2013, respectively.
Tangible common equity, (also referred to as tangible book value) and tangible assets, are equal to common equity and assets, respectively, less $0.2 million of intangible assets as of March 31, 2014, or less $0.3 million of intangible assets as of December 31, 2013 and March 31, 2013.
The efficiency ratio is the ratio of noninterest expense to the sum of net interest income and noninterest income.
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.