First Foundation up after hinting at $1.9 bln loan sale

First Foundation

03/10/2024 15:17

** First Foundation's  FFWM.N  shares rise ~4% to $6.18,
bucking weakness in bank stocks, after indicating it wants to
sell $1.9 bln of multifamily loans
    ** FFWM reclassified those loans to "held for sale" from
"held to maturity"
    ** "Held for sale" loans refer to those the bank is planning
to sell, while "held for maturity" loans are held on the balance
sheet
    ** Multifamily loans refer to debt collateralized by
apartment buildings with more than four units
    ** Reclassification "marks an important next step in the
company's strategic roadmap to fortify the balance sheet and
embrace a more offensive-minded posture" - CEO Scott Kavanaugh
    ** FFWM unnerved some investors when it raised $228 mln in a
July fundraise that some analysts said was "unexpected"
    ** Stock down ~39% YTD as of last close

 (Reporting by Niket Nishant in Bengaluru)
 ((Niket.Nishant@thomsonreuters.com))