New CEO could make First Foundation potential sale candidate sooner, Piper Sandler says

Huntington Bancshares

22/11/2024 14:59

(Updates)
    ** Regional lender First Foundation  FFWM.N  announces
retirement of CEO Scott Kavanaugh after ~15 years at the helm
    ** Former Huntington Bancshares  HBAN.O  executive Thomas
Shafer set to succeed Kavanaugh
    ** Piper Sandler says Shafer is well-known on the Street and
highly respected, given his strong leadership at other banks and
ability to fix certain distressed situations
        ** Brokerage says the appointment could accelerate
turnaround process and make FFWM potential sale candidate sooner
than previously anticipated, given Shafer's track record
  
    ** FFWM, which has a huge portfolio of multi-family real
estate loans, had disclosed a $228 million "unexpected" capital
raise in July 
    ** Meanwhile, Raymond James says, with the recent capital
raise and a plan in place for balance sheet optimization,
Kavanaugh leaves the bank well-positioned for Shafer to continue
with the turnaround
    ** Brokerage says Kavanaugh is leaving the bank in capable
hands, given Shafer's experience running larger banks and
executing on deal

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