FFWM - Earnings call transcript Q2 2021

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Operator

Greetings, and welcome to First Foundation’s Second Quarter 2021 Earnings Conference Call. Today’s call is being recorded. At this time, all participants have been placed in a listen-only mode and the floor would be opened for your questions following the presentation [Operator Instructions] Speaking today will be Scott Kavanaugh, First Foundation’s Chief Executive Officer; Kevin Thompson, Chief Financial Officer; and David DePillo, the President.

Before I hand the call over to Scott, please note that management will make certain predictive statements during today’s call that reflect their current views and expectations about the Company’s performance and financial results. These forward-looking statements are made subject to the safe harbor statement included in today’s earnings release.

the include of financial some addition, discussion non-GAAP may measures. In

any the more call results Kavanaugh. uncertainties from filings reconciliations with complete Commission. the a the and now, measures, risks non-GAAP to statements go financial of Please discussion materially the actual For hand Company’s cause I Scott of and would over see to and to could and differ ahead. Exchange Securities forward-looking And that like

Scott Kavanaugh

to joining call. for of us. you welcome thank like quarter conference all to would earnings and second our Hello you We XXXX

regarding over of XXXX X% We to a XX% will be and year-over-year. for the Difficulty] our XX% strong our providing activities, delivered increase XX.X of well quarter We is then revenues some quarter a respond increase [Technical prepared the across will quarter, model first first results a entire XXXX quarter as comments Total the and business were million represents a we year-over-year. another of for and questions. XX% increase performing increase the

at book higher ended transformation of per our shape. taken The value share has declared second model We cash really the business per $X.XX share. paid quarter dividend of tangible quarter and Our our $XX.XX.

as these regional I and transforming position our only commercial have diversifying has calls balance bank. our mentioned As a have been on our strengthened sheet we before, focused on offering. This

a than in much As invested on we we bank call you are when just our safer years the we at it. ago three of many look today, business were what short first

with our accounts more the our lending businesses now commercial quarter. originated to related no than XX% this. one the account including responsible showcasing serve. an sector uptick division our but still billion a few and for C&I me we we job Let this a and for X.X and elaborate portfolio of originations, XX% for has of amazing XX% of portfolio, on been loans We of diversity multifamily business loan originating funding significant loans, do points the in Business

to of new lending we commercial finance area. add capability a Los construction We Vegas lending. with focused Angeles to the lending And that on continue team our builder dedicated is teams new Las the and brought in the on addition

Another diversifying loan offering. way we are our

established also last We team year equipment originations. And source finance single-family loan be our continues a loans and municipal is credit to high team consistently to of finance portfolio. low our adding LTV our quality, strong

deposits for has deposits, our our of increased accounts. in over total our business-related and operating significant also reduction our an in XX% and the Looking attributable more core increase today at funding to deposits accounts past quarters brokered

this Federal at improved We ratio Bank that sheet profile think bank’s the of to to advances balance time, the our updated end quarter. Home Loan have I We XX% benefits, our would same of this loan-to-deposit call. several has today which meaningful the of highlight at on zero while two like

low of We loans rate generate solid yields interest of pipeline in spite have a environments. attractive that

have growth income are many have decreased interest the the foreseeable total year-over-year. for that borrowings month need our XX% This even bank increased an as loan also will by have home of deposits we June, means for not future. we immediate this, funding have when Related our having banks basis costs income trouble XX interest experienced XX% in of time we a generating net points year-over-year. During to to

X.X gain reached wealth of value XX% quarter. billion. and scale management of record under want as each company. and revenue balance remind continuing had to levels combined for In planning, additional the important have generate that quarter to which management, to in-house by ending adding also management This private the we investment wealth of added the benefit transformation sheet, XXX the margin of assets was trust to wealth offering I management everyone addition the for sources our wealth management our trust includes and services the million provides for Also, the offering an meaningful and business pretax clients is at

we offering traditional is with the collaboration currency are through will our our Pfizer. This regulators working and NiGIG we partners, and underway have a can that well soon, asset digital And with closely bring crypto project of scope we on our to solutions banking.

to in roll offering this out of our year. We the quarter fourth expect

services well position as us our of seek these serve we to All clients.

they we for designed Texas markets our results that we are their the efforts, in is lives, grateful wherever [Technical diverse very to going model help Difficulty]. so warm expansion is and across Our our our the financial indicate reception. and business very serve. is well are Related today’s in well to model dynamic clients working growth and

As we me our based Kelly team here Counsel, today, newly in several this General along operate Dallas. Rentzel, appointed space, joins members in other are who with

Plano and markets in We retail growth for are offering, other looking includes opened Colinas fit we’ll so that to we Texas space our also Texas, for pleased here. in This first future that have loss business-friendly our first for LPO are great There be attractive signing really many a in we are pleased our are areas. and be branch. in officially and

First Integrity During we of the announced planned based Bank. quarter, our acquisition Florida Naples

into have of of Florida exciting President and opportunity Gary existing of the the truly excited expand what close vision. common firms This Board with really At two will them with from to business-friendly our will It We about to our Florida the become and are FFIB will the a a team Regional Garrett - they Tice a the another the operations. we Richter state. our be so join talent adding pleased work team merger of new as built. to at also operations. is expand transaction, upon legacy

steps making In the there we to terms progress. of a several time go, line related but acquisition, are are good still to

page Foundation First Foundation. Bank merger SX is would we platform Relations more Investor the the First how approval the sometime would I in that by There like regulatory great filed at details team like pleased with quarter. on early operations for have our their to XXXX. am We our convert and the onto want I entire next to information. expect a those say about presentation of Then

a who and to have very We clients business. group are serving a building committed great of people valuable

entrust our with lead also clients well-being. is to and their have financial I’m to amazing truly organization, us who able about this It We an really honor excited be future.

Thompson. let Now, CFO, to the call me turn our over Kevin

Kevin Thompson

expanded equity quarter Earnings per return X.X% strong merger-related TGR included have assets success with on the interest had net in the of adjusted XX.X%. for Adjusting lowering on you, XX to Financial. tangible have at the related million The deposit would on assets the we X.X% Thank common X.XX% Scott. expenses, discipline return average and our on quarter our equity X.X acquisition was second in production loans to pricing. points share result with a of a expenses and of our return on dropping in diluted in basis four XX.X%. $X.XX to slightly points would of of been tangible return by We loan have growth X.XX%. been basis maintain common continued strong as The yield margin loan the

total and from trending past less several continued Our over sheet in C&I the production strong increasing basis our We to is in XX and loan cost deposits XX quarters, balance in June. XX% points decreased the multifamily the quarter liability-sensitive. basis to the With XX core the of XXX a downward trend points deposits recognized realized recognizing completed from PPP We or fees XX% PPP fee funded XXX million the million of $XXX,XXX bringing sale quarter, the total gain. of of loans cumulative PPP million. net the of X.X income of fees, loans

had Excluding scenario credit of decreased $X.X the PPP, the in for of as XX servicing to result one basis the losses NIM our for calculation. loans the effects valuation recognized all on remained low to loans. was quarter. allowance utilized we a million basis for in remain a in points net the for would interest the result the point charge-offs have the metrics and nonperforming assets been basis of strong and improvement total environment This points quarter allowance at Credit speeds. in and changes primarily rights of assets. portfolios, We We rate loan a XX economic mortgage of prepayment total CECL X.XX%

strong quarter. with referenced, of combined our revenues and million a X.X in as divisions XX% were Scott trust and fees the achieved of advisory management pretax Asset profit margin

increased FFA at billion. management trust assets at FFB X.X under billion, advisement under at strong to Assets while X.X remained

now expense for benefits the call David have increased X.X The from efficiencies. merger-related made I XX.X%, the non-interest to with over to was the million management we operational continue strong quarter the we in excluding and expenses ratio Our the our will expense essentially DePillo. in was infrastructure, and realize in turn investments efficiency quarter, leverage flat. but

David DePillo

Kevin. you, Thank

the commercial from the XX move continue is C&I business quarter regional detail contributed diversify The sensitive. positioned second XX% billion base. strong loans, of liability public record in our of our adjustable we generate originations transformation of for shift in the X.X accounted nicely portfolio. million would diverse that remaining of million to real bank originations loans, high-quality equipment commercial third loans quarter. continues comprised are lines of we XX loans, Included XXX of neutral develop loans commercial strategic client our loans. revolving our first servicing our I to of of continue which of funding. year. million XX.X owner-occupied commercial well balance that, were mentioned, sheet finance loans credit, highlight a of Scott of for a In million quarter PPP which the of C&I are for XX term we rate loan more commercial six sheet some of was today, XX% million lending yields funded to of They of commercial our all to business million us XX finance loan and As were the like more months quarter, as balance round C&I and and originations for straight the to estate as originations term to Adding this to

billion loans percentage breakdown commercial in X% X% including was quarter, at and C&I, owner-occupied more as X.X broadly Looking second XX%, the estate, we single-family originated of XX%, real that the follows. multifamily the other.

remains underwriting focus important we this over XX accomplished of record quarter of during basis Loan the to continue on that low high and have third loans to into some a changing seasonal to summer our as we pipeline our always to is borrowers. the quarter note heading without expect points quarter. originations We strong fell NPAs It months. to high-quality standards the cyclicality solid

average Speaking loan the ability our demonstrate about was to originations, more rate [XXX] which interest a also defending while quarter, weighted steady continues record first of achieve from held loan to on we specifically which the achieved (Ph) This yields, on our XXX. yields portfolio. volumes

loans our XXXX, for maturity and consists C&I loans, X% XX, XX% and land June of of CRE, held XX% consumer X% single-family other As XX% construction. loans, multifamily and loans

million, our to market commercial costing Our of of from were intentional of reflects accounts higher in demand Deposit with increase of quarter increase an during retail deposit driven quarter money million X.X in channel, branches. XXX XX% business a compared savings second of to billion, XX% end deposits inflows an service million, attributed during a CDs of and the reduction division also digital our to billion XXXX reduction XX second to XXXX non-interest-bearing of of in levels second largely largely was growth experienced a historic addition bank by the X.X or to deposits. which quarter in primarily increase XXX primarily quarter the offset deposits at million, runoff in broker and of our interest-bearing demand in the of due XXXX. increase The deposits, by deposits XX a reduction

of our service total banking Our deposit XX% now our in business and both for from deposit The million of customers were growth group XXX deposits core now increase of deposits total our account million our increase second deposit of non-interest-bearing complex quarter were in served as commercial deposits million. million the treasury includes branches. by serving attributed stream management, XXXX million deposits XXth, XX% Commercial retail and of the or commercial Of deposits from to deposits, core deposits. XXX XXX channel, retail of deposits branch an customers core deposits. XX% in June XXX business our total account commercial XX% XX for of commercial in

have deposits reached a basis and of to June. points XX cost improve of point Our in low continued

continued our commercial of benefit the reflects this noted, As to regional a transformation bank.

Although, to quarter. NIM XXX the during as expanded Kevin mentioned,

put next quarter. Our it over robust during to as the liquidity provided tend but a deposit some couple the This in liquidity. excess NIM to accelerate likely loan has growth summer, us slight the funding, drag additional fourth months excess slow work of we which provide will down to through

final our will of our out, seventh digital a up-and-coming Looking and our preparing with technology investment in for environment to and enhancements anything and about the phones already year, should including going our par part offered sale, to-date app for tablets. business. or a which banking as in clients A banks to we we are that in by well complete engage efforts both be traditional a and has business which several third plan become choose secure bank. further key neo safe our mobile points few implementations for a our deal this innovation Our significant with including technology; complete well loan These and our fintechs later quarter, routine devices, for the using on expect are such put clients offering offering personal those of digital within with enhancement digital mobile to a us as new and some

to continue our further also that us helps operation We our make clients improve better and enhancements enterprise efficiencies. service data to

With Florida these added that locations, opportunities. be Texas we scale and up pay are off soon as these investments to to be sure the addition of will

for quarter we All work. Operator. will of could achieved are have to so we in questions, and have take I’m it in great the their ready team At this the I success grateful hand without time, the hard this place. and back to dedication been not

Operator

first comes from Clark your Matthew for Thank Instructions] Sandler. questions. And floor [Operator is of Piper now question you open the

Matthew Clark

good guys. Hey morning

cannabis initiative, size be to quarter. is wanted of better a the you the kind to could It efforts considering much us it of hone more. Dallas It and Just a how sources of the growth much is deposit types little how - have more a in growth. pretty give of then traditional that bank meaningful non-interest-bearing of on from from increase, Can might sense just came of come almost of one a in speak your

Scott Kavanaugh

that a is staff signing very the really So the really and of still is the portion. Cannabis we reality are next our the to is it that had but in increased, not has won’t Dallas for kicked online be has probably means say increase a have traditional even The that until attributable minor and opportunity first I slowly would year. yet. in while. people more we first quarter branch just

Kevin Thompson

we of Yes. existing contributed I plan have the several pretty second millions. is growth that lot do some mention would add is clients. that new from the just A growth during significant one hundred clients it added existing that quarter that Dallas of would client particular acquisition. in market we But a

demand through point. the to we seeing yes, clearly, deploy market, at that are we of this and of start our is is outstripping So still happen that deposits prior client growth to to banking our move headquarters. out But ability distribution organic channel it our

Matthew Clark

those quarter like in like was you portion timing -. some feel issue that might of the this there is of are that feel that sticky you do a And growth upcoming balances move do more Okay. or

Scott Kavanaugh

then are build but fourth think fall is I and reality Dave, -. clients. And now, and points to some back, quarter and they the points the So balances are of high what, slightly will the are sticky, they with build very starting in right - low there those

David DePillo

will growth up. of a then Yes, Scott existing and cyclicality probably they during third stated, start fourth way I some hits the we the as - then just those and traditional see building during quarter would were nature the say of lot balance quarter we of of the typically down customers

from business of in deposits that away see conservative However, a cyclicality some clients. we effort of the we to diversify have the those some made

So But and we see of much record even deposits high pretty the probably won’t there - are movement. out turning Matthew, new we yes, from level customers again, are at the so demand away levels. they is

Matthew Clark

in back of loan the overall quarter. expect Okay. stronger of some seasonality growth sounds third what and you And pipeline in to just kind the on like general? half gears your kind a net lot production but shifting the quarter, outlook growth thoughts It and are then in this

David DePillo

first So the point. expect still to the quarter be low we

because quarter post the knock summer on just second will quarter people Third traveling. months. be from COVID, of actually are actually down wood, obviously And the

are we traditionally still from X.X than greater hit a should we unlike the So experienced we say year, a in that last had This of X.X and have - it mostly to seeing I run we more during what would lows billion anywhere in but the production, traditional record third to cyclicality, be COVID quarter. But quarter. first be related will billion.

is run four current billion. to rate Our X.X billion

we we falling at this continue to at don’t is point see off. going and expectation rate, are that Our run demand

as in the a level to support previously, have we So we than stated built those the pay kind off. of see of are and and fruits teams much infrastructure greater have we funding to starting labor we achieved historically past,

Matthew Clark

probably assume roughly? that And billion is be at to year, fair with the acquisition you it five will next Okay.

David DePillo

depends on - market. million expand year XXX market. in that run We all me I’m if that expand going XXX gradual a think we is It correct we rate Their as ex-PPP. in that to how to historical increase it a wrong, be is Kevin, million think I quickly

by next -. what again done. from not is I’m year, they will certainly to scaling one going So But it have sure historically but be billion be up it

Kevin Thompson

on in healthy are I which gearing has team loan Texas is think here only pretty chip million what pipeline, They approaching substantially up couple been is already for depends pretty the the of in. a considering on it side. Florida can months. a XXX

-. little bit billion, ambitious on a but be may So that five the

David DePillo

modeled have I say we Yes, that. would not

and of in cash of least modeling acquisition, completely integrated step on planning do redeployment we that put to in run be not as a their our in historical past. were the up at own. plan our expectations of rapidly the around engine post our from have to a But markets outside relatively more constrained we they their capital that say is model. I the tended would what little However, rate to all new But

Matthew Clark

on Okay. XX I ex-PPP, a And then roughly basis bit reserve, the down points. think, little just

thoughts macro is reserves. factors. the assume of this less would just some C&I to contributing also on what I are overall But production some of that to I it relative your last. the quarter think is And

that expect fourth acquisition points the we of should in with So quarter? basis to XX back reset to the kind

David DePillo

fully yet. can that’s our well. announced than that we SX, in modeled modeling - estimates haven’t some you We you our the Other we deal, saw see and when our latest did as

to a So work we They come, smaller understand subject as more we have requirements. weren’t CECL lot better to close implement loan to portfolio to of CECL do to a before and their bank.

we through loans So And commercial to there more model. run loans. point, their our will are your

wouldn’t So -. say even that their we of the a of higher conservative a be very, little a historical credit would the levels and portfolios are reserve do at it I very quality bank rate They seasoning over anticipate the are significant, reserve and and the it. performance

Scott Kavanaugh

They are X.X%.

David DePillo

X.X%. Yes.

Kevin Thompson

Yes, but on commercial real estate.

David DePillo

At commercials, probably the in they are there -. up

Kevin Thompson

Yes.

little, ratio the driver on to since mortgage C&I. ours their our levels and tend may to do down portfolio in given higher primary size, it is, obviously So a us reserve drive multifamily but drive to we Matthew, tend up compared residential

Matthew Clark

Thank Yes, understood. you.

Operator

you. Thank

Securities. Steve is from Riley question of next B. Your Moss

Stephen Moss

it just good next sounds growth the -- Hi originations quarter loan are up on tying good and bit pipeline impressed. further. Maybe morning. little here. Obviously, a

You pickup in a downs. do have pay

like year? the mid-teens kind guys you a into maybe TGRF, heading are rate next pace with growth, about growth think even comfortable type of you with As of

Kevin Thompson

far really Yes, market on the a all rates Like CPR is I depends so. standpoint. as think from as where it say, you

to be. recently say would where is rates. to tended reflect We up if stay probably current the at, expect CPRs in those step our where are they to down But pay modeling have I mid-teens we

Stephen Moss

their little Vegas think was them this you Los business focus? you added are Perfect. That it a and to in Angeles, and I as more just of is what the terms you quarter. helpful. And expecting from then Can in give color teams guys

David DePillo

Sure.

has L.A. is would several I and below more now. say, market the that been mid-market in traditional So for, years team

which our originally Metro a their on kind So be is animal. team over way banking It that would Pace the in Bank team. that of is U.S. and the It is part have came region strong LA little below. mid-market out a corporate to of hold corporate. and made Western of different eventually a us,

The in that have helping is say management is would they our are stride been and hitting overall above. mid-market we there successful. So corporate and And nationwide. initiatives leveraging team very also

only banking really just but So just to to a pure the really group. add it it corporate additive is - and from production breadth not standpoint, was our depth

Scott Kavanaugh

talk Dave, about pipeline. finance and new the their you builder team also may

David DePillo

Yes. has of some infill individual as with team well. at well the program we us We added as successful. it actually ago spec several and consider infill bank a worked is a an runs that This very builder years multifamily what been builder more construction as do would finance - that owner they that and

focus scale side. and So it the in and very, large builder of actually finance, we are are a or this so a more a driving very building their that funds California team as in far, control a extremely to production. majority and strong doing additional we isn’t They production really infrastructure, but We on adding well always pipeline had lacked primarily large is their expertise. track

are pleased few have we now So and they have here for already a building. pipeline months been very nice a

Stephen Moss

I maybe you $XXX mentioned Scott, think And just close Texas and million, curious well, you the the Texas pipeline of it. are loans of activity. on type $XXX kind seeing LPO to as what Got million

David DePillo

real estate, traditional multifamily that So focused mostly throughout. commercial

have As been large that these are the is you know, servicing that very Texas market market. for and a individuals

financing that to market of as that because the prosper. some well as We and the grow bridge of repositioning within some continues complexes are doing around market

multifamily, of say little and is would of majority bit I bridge a it So CRE. multifamily

to it have but that We in the C&I. have plans to very in as add to relates been selective bankers market, market our very, approach additional C&I

Stephen Moss

about of And and the Great. are curious ongoing, Okay. kind guys growth with expenses TGRF, excluding investments thinking to how expense all here. as just rate just you then

David DePillo

always So because adding to not you continue expand kind an shy we profitability we to in and expense ratio. our infrastructure about to been order of manage know have as needed overall

an in some maintain the We kind but of we or quarter, below So infrastructure, the previous to to are production of we kind think our efficiency now that additional And want pay of second standpoint. XX% to going I add made are we still expectations investments saw try quarters you are starting off. from to and in target XX% efficiency.

David DePillo

only that decided thing kind add underwriters, at I we processors, The for we that employees people. were until Yes. would while XXX on And funders, production like Steve of the to stuck had is up ramp a up compliance to side. we with ramp

really have same that build. to You infrastructure have

so employees making we alone scale. that very are with year around to think until XXX trying that at we start that around close hopefully year getting XXX about we do off some towards we just then of sure from level lockstep or way it Dave’s leaning right, and And XXX. to this But ratio gone have efficiencies the our is not, to this If XX-ish it. to taper efficiency get maintains can are

Scott Kavanaugh

in of for and and investing preparing brings a the need for billion of that know, new to dipping next we on a as billion additional just regulatory level with that we X.X bank. the add year which, we TGR requirements and XX into Financial, talent. are year-end to getting as way sometime you anticipate will regime I acquisition the And well And area, by

to the about in order team talented TGR One Financials, functioning high need of they our the have culture, to addition to with nice infrastructure we really add a but team. come a as both great and a things well as very

see normally, cost saves. you where higher would So

We so have at billion to XX from mark. talented can employees this retain close, for TGR be opted many really we that prepared

be efficiency So we But there anticipate Mark. ratio, at or XX% below expenses that. Dave’s to to seeing the will related point,

Stephen Moss

guys. Okay, great. very well thanks much

David DePillo

Thank you.

Scott Kavanaugh

Thanks you Steve.

Operator

you. Thank

Your D.A. comes Gary from next Tenner Davidson. question of

Gary Tenner

morning. good Thanks

of lowering quarters, kind side the have headwinds deposit second. quarters you couple offset Just yield margin touch asset three been a for to costs. Last on on able or earning decline the by of in

to those drag level loan now, low there a see threes the yields, or where given little is we at are bit of current deposit on sustain Given kind pressure. production of the rate the kind are costs enough loan the right and new in likely room to margin of

Scott Kavanaugh

start with side. will the I deposit

would are we and We most close of we say drawing marketplace. what part, to probably fair the for have think squeezed a that can the on we really amount I a out out squeeze

So I exceptional the we are have you basis done think was deposits. think of an in the cost more of XX cost see much lowering to don’t I going the way mean, more that I our But experienced that of much in shrinking than of June. job funds points

David DePillo

on we our the to asset earning some deployed on getting above cash So really and is say yields side, a it would loan less I zero loan Gary, it returning whether into lower not portfolio or are little close adding interesting, is a zero. to do

loan earning that more we material less points probably excess is or So that much X% But - have over fund in been and for well quite day-in our for funding margin day-out, you year. than pretty much funding we whatever slightly new lower see, getting loans about a XXX, does or a And say cash XXX range rate that million on have or some curve floor asset this would week-out. more, will a and week-in, the an yield to basis I time. earning into earning at that XXX is of yields. We as XX impact whether or even maintain can billion been have $X

points is earning biggest but something going really getting more that is certainly basis has or that rate the up cash vary down, to but may have impact. some zero So it our XX into impact, almost than

Gary Tenner

Yes. sense. That makes

yields, backdrop talk So of of obviously sell loans liquidity advance asset you about in quarter being to can headwind this decision build the with of in the the the a serialization? terms

David DePillo

of was [BLA] a that to very a that So originally what them we national on agencies talking interesting. there little securitizing scenario. when was Dealing meets we BLI them, (Ph) national assets with met the originate the focus were calculator

and So said we and private into may to blocks. the us. we securitization benefited from one well, We well a can single went a back if and then agency which away institutions also said, move of those smaller we selling actually complete transaction, completed

at we in we slightly probably versus a of the smaller transaction scenario day, So in sold the end second are what a net-net, doing both quarter. the

customers really reason quarter. sale make larger why little then was a are third in existing sale the have one-to-one It through just room in it service to we the servicing in relationship order the multi Again, year-in quarter, the a us also you will and is reason bit So these to the the assets had that strategic selling are primary borrower maintain to ratio. the why But of split. those we that is we with this securitization. for that of reason majority have and to is ability customers year-out, and our maintain our

Gary Tenner

I appreciate color. Okay, the

Operator

And Thank question your from you. next is of Instructions] Chiaverini [Operator David Wedbush Securities.

David Chiaverini

A thanks. of A questions you. on Hi couple follow-up deposits. for

or a I’m Las services or new Vegas about commercial treasury just corporate curious, the was how approach change product new the that with is was it any if offering channel you anything You there. drive curious this serving is management, commercial there I complex team mentioned that the was clients big growth. strong customers. contributor deposit helped banking there as anything

Scott Kavanaugh

more came clients main of that changes batch main for the done say would - have most that operations. historically, or reason about, I our the

online now has banking our which some And some changes. more an required of situation, type to of gone clients have

frankly, than we clients, that say really those anything product were demands systems has batch. a would are the much But which overall hasn’t upgrade other to changed we really been of in our handle I meeting previously to handle offerings clients than more or how we So has there those versus of made dynamic any online better. types

David DePillo

Yes. in would order say, a service I to this particular, did of commercial our conversion we year those clients. system in

have real-time there environment that of which as would as the to those mentioned, more segment Scott clientele. batch, As service ability complexities is and is our I needs a versus open API far clients several say, nightly

mechanism. large And one it increase from Group. conversion that to doesn’t of and we ability that a focused investment our is what significantly those our just relationships. driven from can matter. demand base. consider one of the strategically, but yes, the handle our Vegas to clients necessarily process us So Scott additional It C&I service they we provide And through mentioned, by really transactions made are in post our of delivery platform They on as to transformation volumes deposits conversion much billion. do during more best-in-class And loan outsized business, an side particularly Not process client the million

David Chiaverini

expenses a shifting that but I housekeeping saw where bit. it, marketing item function Is and the up that And line question, services is was? is gears. Got that charge, of professional a jumped helpful. of more is merger the This and then that little a

Kevin Thompson

Yes. correct. All the That is in line merger charges are that

David DePillo

legal. is It

Kevin Thompson

professional. Legal Yes. and

David DePillo

and Legal professional.

David Chiaverini

much. very Thanks it. Got

Operator

no I have questions call will this further remarks. closing Mr. We time. to at for turn back Scott over the Kavanaugh

Scott Kavanaugh

participating today’s of for Very we the call. again you proud Thank in results reported.

are expansion we that related Dallas-Fort Hawaii. Florida, very pleased in geographic to doing and opportunities invest All business well, exceptionally the lines of in our the continue we existing and path serving Nevada California, and Worth are markets our in and Metroplex on. great in to our There I’m are

As Investor section found a Relations reminder, the remainder and report Thank and on a investor you, can be have of great your of presentation our website. our earnings day.

Operator

does This conference today’s everyone. you, Thank conclude call.

You may now disconnect.

First Foundation (FFWM) 27 Jul 212021 Q2 Earnings call transcript