ffwm-8k_20180131.htm

 

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

 

FORM 8-K

 


CURRENT REPORT

Pursuant to Section 13 or 15(d) of the

Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): January 31, 2018

 

FIRST FOUNDATION INC.

(Exact name of registrant as specified in its charter)

 

 

 

Delaware

 

001-36461

 

20-8639702

(State or other jurisdiction

of incorporation)

 

(Commission

File Number)

 

(IRS Employer

Identification Number)

 

 18101 Von Karman Avenue, Suite 700

 

 

Irvine, California

 

92612

(Address of Principal Executive Offices)

 

(Zip Code)

 

(949) 202-4160

(Registrant’s Telephone Number, Including Area Code)

N/A

(Former name or former address, if changed since last report.)

 


Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.

 

 


Item 2.02 Results of Operations and Financial Condition

On January 31, 2018, First Foundation Inc. issued a press release reporting its consolidated financial results for the fourth quarter and year ended December 31, 2017. A copy of that press release is attached as Exhibit 99.1 to this Current Report on Form 8-K and is incorporated herein by reference.

In accordance with General Instruction B.2 of Form 8-K, the information contained in Item 2.02 of this Current Report on Form 8-K, including Exhibit 99.1, is being furnished and shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liabilities of that Section, and such information and that Exhibit shall not be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended.

The press release furnished as Exhibit 99.1 to this Current Report on Form 8-K may contain forward-looking statements within the meaning of Section 27A of the Securities Act and Section 21E of the Exchange Act and, as such, may involve known and unknown risks, uncertainties and assumptions. Such forward-looking statements relate to First Foundation’s current expectations and are subject to the limitations and qualifications set forth in First Foundation’s other documents filed with the U.S. Securities and Exchange Commission, including, without limitation, that actual events and/or results may differ materially from those projected in such forward-looking statements.



Item 8.01 Other Events

On January 31, 2018, First Foundation Inc. announced the following consolidated financial results for the fourth quarter and year ended December 31, 2017:

FIRST FOUNDATION INC.

CONSOLIDATED BALANCE SHEETS - Unaudited

(in thousands, except share and per share amounts)

 

 

 

 

December 31,

2017

 

December 31, 2016

ASSETS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

120,394

 

 

$

597,946

 

Securities available-for-sale (“AFS”)

 

 

519,364

 

 

 

509,578

 

Loans held for sale

 

 

154,380

 

 

 

250,942

 

 

 

 

 

 

 

 

 

 

Loans, net of deferred fees

 

 

3,663,727

 

 

 

2,555,709

 

Allowance for loan and lease losses (“ALLL”)

 

 

(18,400

)

 

 

(15,400

)

Net loans

 

 

3,645,327

 

 

 

2,540,309

 

 

 

 

 

 

 

 

 

 

Investment in FHLB stock

 

 

19,060

 

 

 

33,750

 

Deferred taxes

 

 

12,143

 

 

 

16,811

 

Premises and equipment, net

 

 

6,581

 

 

 

6,730

 

Real estate owned (“REO”)

 

 

2,920

 

 

 

1,734

 

Goodwill and intangibles

 

 

33,576

 

 

 

2,177

 

Other assets

 

 

27,440

 

 

 

15,426

 

Total Assets

 

$

4,541,185

 

 

$

3,975,403

 

 

 

 

 

 

 

 

 

 

LIABILITIES AND SHAREHOLDERS’ EQUITY

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Liabilities:

 

 

 

 

 

 

 

 

Deposits

 

$

3,443,527

 

 

$

2,426,795

 

Borrowings

 

 

678,000

 

 

 

1,250,000

 

Accounts payable and other liabilities

 

 

24,707

 

 

 

14,344

 

Total Liabilities

 

 

4,146,234

 

 

 

3,691,139

 

 

 

 

 

 

 

 

 

 

Commitments and contingencies

 

 

-

 

 

 

-

 

 

Shareholders’ Equity

 

 

 

 

 

 

 

 

Common Stock, par value $.001: 70,000,000 shares authorized; 38,207,766 and 32,719,632 shares issued and outstanding at December 31, 2017 and December 31, 2016, respectively

 

 

38

 

 

 

16

 

Additional paid-in-capital

 

 

314,501

 

 

 

232,428

 

Retained earnings

 

 

85,503

 

 

 

57,065

 

Accumulated other comprehensive income (loss), net of tax

 

 

(5,091

)

 

 

(5,245

)

Total Shareholders’ Equity

 

 

394,951

 

 

 

284,264

 

 

 

 

 

 

 

 

 

 

Total Liabilities and Shareholders’ Equity

 

$

4,541,185

 

 

$

3,975,403

 

 

 

 

 

 

 

 

 

 

 

 

 

 


 

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,

 

 

2017

 

2016

 

2017

 

2016

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest income:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loans

 

$

33,998

 

 

$

23,718

 

 

$

121,707

 

 

$

85,080

 

Securities

 

 

3,227

 

 

 

3,358

 

 

 

12,407

 

 

 

12,781

 

FHLB Stock, fed funds sold and deposits

 

 

686

 

 

 

1,291

 

 

 

2,687

 

 

 

2,781

 

Total interest income

 

 

37,911

 

 

 

28,367

 

 

 

136,801

 

 

 

100,642

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest expense:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Deposits

 

 

5,340

 

 

 

2,722

 

 

 

17,443

 

 

 

8,916

 

Borrowings

 

 

1,346

 

 

 

641

 

 

 

5,740

 

 

 

2,277

 

Total interest expense

 

 

6,686

 

 

 

3,363

 

 

 

23,183

 

 

 

11,193

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net interest income

 

 

31,225

 

 

 

25,004

 

 

 

113,618

 

 

 

89,449

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Provision for loan losses

 

 

900

 

 

 

1,800

 

 

 

2,762

 

 

 

4,681

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net interest income after provision for loan losses

 

 

30,325

 

 

 

23,204

 

 

 

110,856

 

 

 

84,768

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Noninterest income:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Asset management, consulting and other fees

 

 

7,038

 

 

 

6,257

 

 

 

26,710

 

 

 

24,384

 

Gain on sale of loans

 

 

2,717

 

 

 

574

 

 

 

7,029

 

 

 

7,812

 

Gain (loss) on capital markets activities

 

 

-

 

 

 

-

 

 

 

-

 

 

 

(1,043

)

Other income

 

 

1,621

 

 

 

755

 

 

 

4,980

 

 

 

3,407

 

Total noninterest income

 

 

11,376

 

 

 

7,586

 

 

 

38,719

 

 

 

34,560

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Noninterest expense:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Compensation and benefits

 

 

13,703

 

 

 

11,867

 

 

 

56,558

 

 

 

48,574

 

Occupancy and depreciation

 

 

4,302

 

 

 

3,195

 

 

 

15,396

 

 

 

11,978

 

Professional services and marketing costs

 

 

2,572

 

 

 

2,017

 

 

 

7,687

 

 

 

9,825

 

Other expenses

 

 

8,084

 

 

 

3,112

 

 

 

19,335

 

 

 

10,617

 

Total noninterest expense

 

 

28,661

 

 

 

20,191

 

 

 

98,976

 

 

 

80,994

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income before taxes on income

 

 

13,040

 

 

 

10,599

 

 

 

50,599

 

 

 

38,334

 

Taxes on income

 

 

10,767

 

 

 

4,082

 

 

 

23,017

 

 

 

15,031

 

Net income

 

$

2,273

 

 

$

6,517

 

 

$

27,582

 

 

$

23,303

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income per share:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

$

0.06

 

 

$

0.20

 

 

$

0.80

 

 

$

0.72

 

Diluted

 

$

0.06

 

 

$

0.19

 

 

$

0.78

 

 

$

0.70

 

Shares used in computation:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

 

36,890,085

 

 

 

32,668,318

 

 

 

34,482,630

 

 

 

32,365,800

 

Diluted

 

 

37,500,952

 

 

 

33,788,114

 

 

 

35,331,059

 

 

 

33,471,816

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


 

-4-

 

 

 

 

 


 

Item 9.01 Financial Statements and Exhibits

Exhibit No.

 

Description

 

 

 

99.1

 

Press Release dated January 31, 2018, announcing the consolidated financial results of First Foundation Inc. for the fourth quarter and year ended December 31, 2017.

 

 


 

-5-

 

 

 

 

 


 

 

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 

 

 

FIRST FOUNDATION INC.

 

 

 

 

 

 

Date: January 31, 2018

By:

/s/ JOHN MICHEL

 

 

 

John M. Michel

Executive Vice President & Chief Financial Officer

 

 

 

-6-