First Foundation Investor Presentation Deck
Non-GAAP Return on Average Tangible Common Equity
(ROATCE), Adjusted Return on Average Assets and Net Income
Return on average tangible common equity was calculated by excluding average goodwill and intangibles assets from the average shareholders' equity during the
associated periods. Adjusted return on average assets represents adjusted net income attributable to common shareholders divided by average total assets.
Adjusted net income attributable to common shareholders includes various adjustments to net income, including an adjustment for non-cash goodwill impairment
charges, and any associated tax effect of those adjustments during the associated periods.
The table below provides a reconciliation of the GAAP measure of return on average equity to the non-GAAP measure of return on average tangible common equity.
The table below also provides a reconciliation of the GAAP measure of net income (loss) to the non-GAAP measure of adjusted net income attributable to common
shareholders. The table below also provides a reconciliation of the GAAP measure of return on average assets to the non-GAAP measure of adjusted return on
average assets.
(S in thousands)
Unaudited
Average shareholders' equity
Less: Average goodwill and intangible assets
Average tangible common equity
Average total assets
Net Income
Add: Goodwill impairment
Adjustments:
Plus: Amortization of intangible assets expense
Plus/(Less): Merger related costs
Plus: Professional service costs
Plus: Valuation loss on equity investment
Plus: Severance costs
Less: Incentive compensation reversal
Less: Stock compensation reversal
Less: FDIC insurance expense refund
Total Adjustments
Less: Tax effect on adjustments
Adjusted Net Income (loss) available to common shareholders
Tax rate utilized for calculating tax effect on adjustments
Return on average equity(¹)
Return on average tangible common equity(²)
Return on average assets (3)
Adjusted return on average assets
(4)(5)
FIRST FOUNDATION
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$
474,256 $
69,177
585,728 $
98,291
$ 405,080 $ 487,437 $
$
FY 2018
$
5,300,243
42,958 $
2,043
2,043
(592)
44,408 $
9.1%
11.0%
0.81%
0.84%
12345
29%
3)
FY 2019
5)
6,156,739
2,291
2,291
(664)
57,866 $
29%
9.6%
11.9%
FY 2020
0.91%
0.94%
649,031 $
96,209
552,823 $
56,239 $ 84,369 $ 109,511 $
6,690,422
1,895
29%
FY 2021
13.0%
15.5%
1.26%
1.28%
759,101 $ 1,100,684 $ 1,091,776 $ 1,047,303
104,355
222,393 222,515 135,098
654,746 $ 878,291 $ 869,261 $
912,205
7,733,279 11,456,932 11,035,499
1,579
1,579
(458)
FY 2022
29%
1,895
4,949
(1,400)
(550)
85,714 $ 110,632 $ 114,061 $
14.4%
16.9%
1.42%
1.43%
110,512 $
1,914
(36)
971
6,250
(4,150)
28%
10.0%
13.0%
Nine Months Ended,
9/30/2022 9/30/2023
0.96%
1.00%
4) Annualized adjusted net income divided by average assets.
Use of Non-GAAP measure.
93,158 $
1,459
1,459
(423)
94,194 $
29%
11.4%
14.4%
1.13%
1.14%
13,147,524
(201,612)
215,252
1,247
1,374
748
(1,118)
(724)
1,527
(428)
14,739
28%
-25.7%
2.15%
-2.04%
0.15%
Annualized net income divided by average shareholders' equity.
Annualized adjusted net income available to common shareholders divided by average tangible common equity.
Annualized net income divided by average assets.
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