First Foundation slides after surprise Q4 loss, asset quality deterioration

First Foundation

30/01/2025 19:11

** Shares of regional lender First Foundation  FFWM.N 
plunge as much as 13.6%; last down 12.7% at $5.47
    ** FFWM posts Q4 adjusted loss of 17 cents/shr, compared
with Wall Street expectations of a profit of 5 cents/shr - LSEG
data
    ** Q4 net interest income of $51.3 mln missed estimates of
$54 mln      
    ** However, Q4 non-interest expense jumped 20% to $67 mln,
above expectations of $58.1 mln, driven by higher compensation
and benefits
    ** Provision for credit losses rocketed to $20.6 mln in Q4
from $229,000 a year earlier    
    ** Q4 net charge-off ratio spiked to 0.70% from 0.02% a year
earlier due to full write-offs of three commercial credit
relationships
    ** FFWM stock slumped 35.9% in 2024

 (Reporting by Arasu Kannagi Basil in Bengaluru)
 ((ArasuKannagi.Basil@thomsonreuters.com;))