Source: Investing Posted 09/09/2024, 23:52
First Foundation Inc. (NYSE:FFWM) has undergone significant changes in the composition of its executive management and board of directors, as reported in a recent filing of an 8-K form with the U.S. Securities and Exchange Commission. Simon Lagomarsino has been appointed President of First Foundation Inc., effective September 3, 2024. Meanwhile, Scott F. Kavanaugh has stepped down as chairman but will continue as the company’s chief executive officer.
Lagomarsino, who also became President of First Foundation Bank on July 8, 2024, brings extensive experience to her new role. Prior to joining the First Foundation, she served as CEO of Luther Burbank Savings and was a member of the Board of Directors of Luther Burbank Corporation (NASDAQ:LBC) until February 2024.
Her career includes executive positions at several financial institutions and her leadership has been recognized, including being named Community Banker of the Year by American Banker in 2013. In addition to the appointment of the President, several changes occurred in the First Foundation’s Board of Directors. Four former directors, John A. Hakobyan, David J. Lake, Diane M. Rubin (Chartered Accountant), and Gabriel F. Vazquez, submitted their resignations, effective September 3, 2024. Their resignation was not due to any disagreements with the company’s operations, policies or practices.
To fill the vacancies, four new directors were appointed to the Board of Directors: Sam Edelson, Henchi R. Enden, Simon Lagomarsino, and Benjamin Makovac. These appointments were also effective on September 3, 2024. The new directors bring diverse experience to the board, with backgrounds in real estate, investment management and banking. In other recent news, First Foundation Inc. excelled. on its earnings forecast for the second quarter of 2024, reporting net income of $3.1 million. Additionally, the financial services firm announced a capital increase of $228 million, aimed at promoting growth and stability. Standard Chartered analysts responded by raising the First Foundation’s share target price from $6 to $7, while maintaining an Inline rating.
The company also unveiled strategic plans for the future, including diversifying its loan portfolio with a focus on commercial and industrial lending, and expanding its wealth management services. First Foundation plans to reposition part of its multi-family portfolio, with 20% expected to move to a “kept for sale” category in the third quarter. Looking ahead, the company has set significant financial targets for the end of 2026, including a return on average assets between 0.90% and 1.00%, and an asset size of between $12.5 billion and $13 billion. These constituent changes confirm the recent changes in First Foundation Inc. management.A milestone in the company’s journey, as it seeks to strengthen its market position and expand its strategic operations. The appointment of Simon Lagomarsino as the company’s newest president reflects a strong desire to benefit from her extensive experience in the financial sector, which includes a prominent professional history and significant contributions to the banking industry. Lagomarsino’s background and leadership skills enhance the company’s ability to deal with future challenges and achieve its strategic objectives.
The amendments to the Board of Directors, including the appointment of four new directors, reflect the company’s drive to introduce new and diverse expertise that enhances its ability to innovate and grow. These changes come at a critical time as the company continues to deliver strong financial results, with profits for the second quarter of 2024 exceeding expectations and achieving net income of $3.1 million. The significant capital increase of $228 million demonstrates the company’s commitment to enhancing its financial stability and expanding its operations, reflecting confidence in its future strategies.
