DALLAS - First Foundation Inc . (NYSE: NYSE:FFWM), a financial services company, today announced the appointment of Thomas C. Shafer as its new Chief Executive Officer, succeeding Scott F. Kavanaugh who is retiring. Shafer, who brings four decades of banking experience, will also serve as CEO of First Foundation Bank and join the Boards of Directors of both entities.
Shafer's career includes senior roles at Huntington Bancshares (NASDAQ:HBAN) and TCF National Bank, with his most recent position being Co-President of Commercial Banking at Huntington Bancshares until December 2022. His leadership at regional banks and experience as CEO of TCF National Bank are highlighted as key assets for his new role at First Foundation.
The company expressed its gratitude to Kavanaugh for his service, crediting him with developing First Foundation into a multi-state financial services provider since its founding. Shafer expressed honor at the appointment and gratitude for the board's confidence in him.
In conjunction with his hiring, Shafer was granted 500,000 restricted stock units as part of the company's 2024 Equity Incentive Plan. The RSUs will vest over a period contingent on his continued service with the company.
First Foundation, known for its integrated platform of financial products and personalized services, offers personal and business banking, as well as private wealth management services. The company aims to serve clients through various stages of their financial journey, combining elements typical of larger institutions with the personalized touch of smaller firms.
This news is based on a press release statement and does not include any speculative or forward-looking implications for the industry. The company's forward-looking statements are subject to risks and uncertainties, and actual results could differ materially from those projected.
In other recent news, First Foundation Inc. reported mixed Q3 results amid significant strategic shifts. The company underwent a $228 million capital raise and a balance sheet adjustment that moved $1.9 billion in multifamily loans to available for sale, leading to a paper loss of $117.5 million. Despite these developments, First Foundation reported a net income from continuing operations of $2.7 million. However, due to the balance sheet realignment, there was a net loss attributable to common shareholders of $82.2 million or $1.23 per share. The bank's total deposits decreased to $10.3 billion, and the loan to deposit ratio rose to 95.9%.
In addition, First Foundation Inc. announced the appointment of C. Allen Parker to its Board of Directors and its subsidiary, First Foundation Bank. Parker's extensive experience in corporate governance and finance, including previous roles at Wells Fargo (NYSE:WFC) & Company and SVB Financial Group, will be leveraged to strengthen First Foundation's governance and oversight capabilities.
Looking ahead, First Foundation plans to securitize around $0.5 billion of loans in the fourth quarter of 2024 and is considering further loan sales and securitizations in 2025. These are recent developments that investors should take into account.
InvestingPro Insights
As First Foundation Inc. (NYSE: FFWM) welcomes Thomas C. Shafer as its new CEO, investors may be curious about the company's current financial standing and future prospects. According to InvestingPro data, FFWM's market capitalization stands at $639 million, reflecting its position in the financial services sector.
Despite recent challenges, there are signs of potential improvement on the horizon. An InvestingPro Tip indicates that net income is expected to grow this year, which could be a positive signal for investors following the leadership transition. Additionally, analysts predict that the company will return to profitability this year, suggesting a potential turnaround from its recent performance.
The company's stock has shown resilience, with InvestingPro data revealing a strong return of 18.29% over the last three months. This performance may reflect market optimism about the company's future under new leadership.
However, it's important to note that FFWM currently faces some financial headwinds. The company's revenue growth has been negative, with a significant decline of -60.91% in the last twelve months. This context underscores the challenges that the new CEO will need to address to steer the company towards sustainable growth.
For investors seeking a more comprehensive analysis, InvestingPro offers additional insights, with 6 more tips available for FFWM. These tips could provide valuable context for understanding the company's financial health and future prospects as it enters this new chapter under Shafer's leadership.
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