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First Foundation Shares Plunge on Capital Raise

New investors buy 49% of bank

Shares of First Foundation Inc., which has most of its operations in Irvine (NYSE: FFWM), fell as much as 24% after it was revealed that it’s raising $228 million to unload commercial real estate loans.

The investors, including Fortress Investment Group, Canyon Partners, Strategic Value Bank Partners, North Reef Capital and others agreed to buy common and preferred shares from First Foundation, which moved its headquarters to Dallas in 2021.

The new investors will own 49% of the bank after the deal closes, while existing shareholders will retain 51% ownership. As part of the deal, the investors will buy common and preferred shares at a price of $4.10 a share. The stock was trading at $6.57 at the close today and a $371 million market cap.

The infusion is aimed at giving the bank time to sell off certain loans, said the Wall Street Journal, which cited unidentified people close to the matter.

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Peter J. Brennan
Peter J. Brennan
With four decades of experience in journalism, Peter J. Brennan has built a career that spans diverse news topics and global coverage. From reporting on wars, narcotics trafficking, and natural disasters to analyzing business and financial markets, Peter’s work reflects a commitment to impactful storytelling. Peter’s association with the Orange County Business Journal began in 1997, where he worked until 2000 before moving to Bloomberg News. During his 15 years at Bloomberg, his reporting often influenced financial markets, with headlines and articles moving the market caps of major companies by hundreds of millions of dollars. In 2017, Peter returned to the Orange County Business Journal as Financial Editor, bringing his heavy business industry expertise. Over the years, he advanced to Executive Editor and, in 2024, was named Editor-in-Chief. Peter’s work has been featured in prestigious publications such as The New York Times and The Washington Post, and he has appeared on CNN, CBC, BBC, and Bloomberg TV. A Kiplinger Fellowship recipient at The Ohio State University, he leads the Business Journal with a dedication to uncovering stories that matter and shaping the local business community and beyond.
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