Brief: First Foundation Provides Update On Financial Strength

First Foundation

21/03/2023 24:34

March 20 (Reuters) - First Foundation Inc  FFWM.O :
    * FIRST FOUNDATION PROVIDES UPDATE ON FINANCIAL STRENGTH
    * CONTINUES TO HAVE A RESILIENT CORE BUSINESS, WITH
CONSOLIDATED
TOTAL ASSETS VALUED AT MORE THAN $13.9 BILLION AS OF 3/17/23
    * FULLY COLLATERALIZED CREDIT FACILITY FROM FEDERAL HOME
LOAN BANK
WITH $830 MILLION AVAILABLE AS OF 3/17/23
    * LOAN BALANCE OF $10.7 BILLION AS OF 3/17/23
    * REMAINS IN STRONG LIQUIDITY POSITION WITH AVAILABLE CASH
AND
CASH EQUIVALENTS HELD ON BALANCE SHEET OF ABOUT $1.3 BILLION AS
OF 3/17/23
    * AVAILABLE UNCOMMITTED CREDIT LINES OF $245 MILLION AS OF
3/17/23
    * SINCE 3/15/23, DEPOSIT BALANCE FLUCTUATIONS HAVE
NORMALIZED,
BEGINNING LATE LAST WEEK CO HAS EXPERIENCED INFLOWS,NEW ACCOUNT
OPENINGS
    * FOLLOWING ANNOUNCEMENT OF INDUSTRY'S EVENTS INCLUDING NEWS
ABOUT
CLOSURES OF SILICON VALLEY BANK AND SIGNATURE BANK, COMPANY
EXPERIENCED A TEMPORARY PERIOD OF NET DEPOSIT OUTFLOWS
    * OUTFLOWS WERE LARGELY CONCENTRATED AROUND CLIENTS PARING
THEIR
DEPOSIT BALANCES, UTILIZING PRODUCTS SUCH AS INSURED CASH SWEEP
(ICS) ACCOUNTS, AND STRATEGICALLY REPOSITIONING ACCOUNTS TO
ENSURE FULL FDIC COVERAGE
    * AS OF MARCH 17, 2023, INSURED DEPOSITS REPRESENT
APPROXIMATELY
80% OF TOTAL DEPOSITS, INCLUDING ACCOUNTS ELIGIBLE FOR
PASS-THROUGH INSURANCE
    * CONDUCTED A REASSESSMENT OF OUR DEPOSIT BASE AND
RECLASSIFIED
ALL COLLATERALIZED DEPOSITS, SUCH AS MUNICIPAL BONDS, RESULTING
IN REDUCTION OF UNINSURED DEPOSITS

Source text for Eikon:  ID:nBw8G370xa 
Further company coverage:  FFWM.O 

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