First Foundation Completes Sale and Freddie Mac Guaranteed Securitization of Multifamily Small Balance Loans

IRVINE, Calif.--()--First Foundation Inc. (NASDAQ: FFWM), a financial services company that provides investment management, wealth planning, consulting, trust, insurance, and banking services primarily to high-net-worth individuals and businesses through its two subsidiaries, First Foundation Bank and First Foundation Advisors, today announced the sale and securitization of $102 million of multifamily loans through the Small Balance Loan (SBL) origination initiative managed through Freddie Mac. First Foundation Bank will act as the subservicer of the loans.

“We are excited about establishing a relationship with Freddie Mac which allows us to maintain the servicing of the loans and thereby continue to provide the highest level of service to our clients,” said Scott F. Kavanaugh, CEO of First Foundation. “As we expect to continue to produce high volumes of multifamily loans through our origination platform, we believe our relationship with Freddie Mac will allow us to more effectively manage our loan portfolio through future loan sales and securitizations.”

Under the securitization, $92 million of Structured Pass-Through Certificates were issued and guaranteed by Freddie Mac. In addition, certificates consisting of the Class X2, B and R Certificates, which will be subordinate to the Structured Pass-Through Certificates and not guaranteed by Freddie Mac were issued and purchased by First Foundation Bank. As a result of this transaction, First Foundation expects to record a gain on sale of loans of approximately 2.5%.

About First Foundation

First Foundation, a financial institution founded in 1990, provides integrated investment management, wealth planning, consulting, trust, insurance, and banking services. The Company is headquartered in Irvine, California with offices in Newport Beach, Pasadena, West Los Angeles, San Diego, Oakland, Palm Desert and the Imperial Valley in California, in Las Vegas, Nevada and in Honolulu, Hawaii. For more information, please visit our website at www.ff-inc.com.

Contacts

First Foundation Inc.
John Michel
Chief Financial Officer
949-202-4160
jmichel@ff-inc.com

Contacts

First Foundation Inc.
John Michel
Chief Financial Officer
949-202-4160
jmichel@ff-inc.com