First Foundation (NASDAQ: FFWM) reported Q2 EPS of $0.12, $0.16 worse than the analyst estimate of $0.28. Revenue for the quarter came in at $43.2 million versus the consensus estimate of $46.2 million.

“We have been able to maintain strong growth in both our loan production and revenues while we continue to work through a challenging interest rate environment,” said Scott F. Kavanaugh, CEO. “We used this quarter as an opportunity to start a process to restructure our balance sheet to better position us for 2019 and beyond.”

Highlights

Financial Results:

2018 second quarter compared to 2017 second quarter:

• Net interest income was $36.2 million, an increase of 30%
  • Total revenues were $43.2 million, an increase of 15%
  • Income before taxes was $6.8 million as compared to $14.3 million
  • Earnings were $5.1 million as compared to $9.6 million
  • Earnings per fully diluted share were $0.12 as compared to $0.28

2018 year to date compared to 2017 year to date:

• Net interest income was $70.5 million, an increase of 31%
  • Total revenues were $86.5 million, an increase of 21%
  • Income before taxes was $19.4 million as compared to $23.4 million
  • Earnings were $14.1 million as compared to $15.7 million
  • Earnings per fully diluted share were $0.35 as compared to $0.46

2018 Financial ratios:

• Return on average tangible equity of 7.5% for the first six months
  • Return on average assets of 0.57% for the first six months
  • Efficiency ratio of 68.4% for the first six months
  • Total tangible shareholders’ equity of $418 million, tangible book value of $9.41 per share, and tangible common equity to tangible assets of 7.12%, in each case, as of June 30, 2018

“We had a record quarter of loan production and our balance sheet restructuring will allow us to maintain a high level of loan originations as it reduces our loan concentrations,” said David DePillo, President of First Foundation Bank. “The $3.5 million in chargeoffs relate to a legacy commercial relationship and a relationship from one of our acquisitions. As a result, we do not believe there are any significant credit issues in our portfolio.”

For earnings history and earnings-related data on First Foundation (FFWM) click here.