First Foundation Inc. reported a net loss of $7.7 million, or $0.09 per share, for the second quarter of 2025. This loss was primarily attributed to the strategic sale of $858 million in commercial real estate loans during the quarter. The company continues its efforts to reposition its balance sheet and reduce exposure to certain loan segments.
Despite the reported loss, CEO Thomas C. Shafer stated that the bank's recent actions are intended to keep First Foundation on a path to delivering stronger earnings and more sustainable profitability in the future. These strategic loan sales are part of a broader plan to optimize the company's asset portfolio and improve its risk profile.
The ongoing balance sheet transformation involves reducing lower-yielding assets and remixing the loan portfolio towards higher-yielding commercial and industrial (C&I) assets. While these actions may result in short-term financial impacts, they are designed to enhance the company's long-term financial health and operational efficiency.
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