First Foundation Inc. reported a net loss of $14.1 million, or $0.17 per share, for the fourth quarter of 2024. The adjusted net income attributable to common shareholders was a loss of $13.9 million, or $0.17 per share. These results reflect the company's ongoing strategic transformation efforts.
During the quarter, First Foundation completed the sale of approximately $489 million in multifamily loans, which were part of the $1.9 billion portfolio reclassified in the third quarter. This transaction generated a $4.4 million gain on sale of loans, partially offset by a $3.3 million reduction in the fair value of the remaining held-for-sale loans. Proceeds from the sale were used to reduce $488 million in higher-cost brokered deposits, contributing to a decrease in the cost of deposits to 3.19% from 3.41% in the prior quarter.
The net interest margin (NIM) continued to expand, reaching 1.58% in Q4 2024, up 8 basis points from 1.50% in the third quarter. Total loans decreased to $9.2 billion, with $1.3 billion remaining in loans held for sale. The company also recorded a $20.1 million additional provision for loan losses, increasing the allowance for credit losses to total loans held for investment to 0.41%. Additionally, $266.6 million in borrowings from the Bank Term Funding Program were repaid in full.
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