One small Orange County local bank continues to find success among Korean Americans, while a larger rival is looking to other states for a “business-friendly” environment.
First Foundation Inc. (FFWM), which has its major operations in Irvine although it moved its headquarters to Dallas last year, reported 2021 net income rose 30% to $109.5 million.
Total assets jumped 47% to $10.2 billion, aided by its largest-ever acquisition: TGR Financial Inc. in Florida. Assets above $10 billion signal an intention to expand even more because it brings a higher level of regulatory scrutiny.
“We are now strategically positioned in another business-friendly state with the ability to expand into some key markets within Florida,” CEO Scott Kavanaugh told analysts on a conference call last week.
The company reported fourth-quarter profit of 51 cents per share, topping the 40 cent estimate of analysts. The beat came despite some branches being forced to close due to employees catching the coronavirus.
“There were a couple of days when entire departments were out,” Kavanaugh said.
The company’s shares have about tripled since the onset of the pandemic in 2020 to a $1.6 billion market cap.
Korean Focused
US Metro Bancorp Inc., a Garden Grove-based bank targeting Korean Americans, reported 2021 earnings more than tripled to $15.3 million from 2020.
“SBA loan demand has been very strong,” Chief Executive Dong Il Kim said in a statement.
Its assets climbed 26% to $856.8 million while its outstanding loans climbed 30% to $772.6 million. Kim in 2020 told the Business Journal in 2020 that the bank may join Nasdaq if it reaches $1 billion in assets. Currently, it’s thinly traded stock (OTC: USMT) with a market cap around $77 million at press time.
Kim became the founding CEO of the bank in 2006, leaving after a couple of years. After the bank was in danger of collapsing, he returned in 2013.
“Loan quality remains good” with non-performing assets falling to 0.16% compared with 0.26% a year earlier, the bank said in its Jan. 27 report.
