First Foundation Inc. has announced the reclassification of a portion of its multifamily portfolio, totaling $1.9 billion principal balance, from loans held to maturity to loans held for sale. This strategic move is expected to position the company for a return to historical profitability and performance levels. The company anticipates that the fair-value pricing at the end of the third quarter will surpass 92% of the principal balance, despite a resulting write-down to fair value, which will impact third-quarter earnings and reduce the 'as converted' tangible book value per share.
Following a special meeting of stockholders, all the issued and outstanding shares of the company’s Series B noncumulative convertible preferred stock automatically converted into an aggregate of 14,490,000 shares of common stock as of October 2, 2024.
The company provided a pro forma tangible book value per share as of June 30, 2024, adjusted to reflect the July 2024 capital raise and the conversion of the shares of Series A preferred stock and Series B preferred stock into shares of common stock. The pro forma tangible book value per share (as adjusted) is $10.20.
First Foundation Inc. and its subsidiaries offer personal banking, business banking, and private wealth management services, including investment, trust, insurance, and philanthropy services. The company's comprehensive platform of financial services is designed to help clients at any stage in their financial journey.
Today the company's shares have moved 8.8% to a price of $6.47. If you want to know more, read the company's complete 8-K report here.
