First Foundation Inc (FFWM) has disclosed a new risk, in the Share Price & Shareholder Rights category.
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First Foundation Inc. faces a significant business risk tied to the volatility of its investment securities’ fair value. Unrealized losses, as reflected in their available-for-sale securities portfolio, directly impact stockholders’ equity and net income without actual asset liquidation. As of December 31, 2023, a reported $14.2 million net unrealized loss on a $711 million portfolio has already eroded the company’s financial standing, reflected in diminished book value and tangible book value per share. This scenario underscores a potential threat to investor confidence and financial stability.
The average FFWM stock price target is $11.13, implying 40.35% upside potential.
To learn more about First Foundation Inc’s risk factors, click here.