First Foundation announced today the closing of its individual investments aggregating to $228 million in the company from affiliates of Fortress Investment Group, Canyon Partners, Strategic Value Bank Partners, North Reef Capital, and other investors.
First Foundation sold and issued 1.) 11,308,676 shares of common stock (par value $0.001 per share at a price per share of $4.10) 2.) 29,811 shares of a new series of preferred stock (par value $0.001 per share) designated as Series A Noncumulative Convertible Preferred Stock; and 3.) 14,490 shares of a new series of preferred stock (par value $0.001 per share) designated as Series B Noncumulative Convertible Preferred Stock. Plus, investors received seven-year warrants to purchase a new series of preferred stock designated as Series C Non-Voting Common Equivalent Stock.
Jefferies acted as exclusive financial advisor and sole placement agent to First Foundation. And Sheppard, Mullin, Richter & Hampton served as legal counsel to First Foundation. Skadden, Arps, Slate, Meagher & Flom served as legal counsel to Fortress Investment Group. Cleary Gottlieb Steen & Hamilton served as legal counsel to Canyon Partners. Sullivan & Cromwell served as legal counsel to Jefferies.
Based in Texas, First Foundation and its subsidiaries offer personal banking, business banking, and private wealth management services, including investment, trust, insurance, and philanthropy services. This platform of financial services is designed to help clients at any stage in their financial journey. The range of financial products and services offered by First Foundation are more consistent with those offered by larger financial institutions, while its high level of personalized service, accessibility, and responsiveness to clients is more aligned with community banks and boutique wealth management firms.
This combination of an integrated platform of comprehensive financial products and personalized service differentiates First Foundation from many of its competitors and has contributed to the growth of its client base and business. As of March 31, 2024, the company had $13.6 billion of assets, $10.1 billion of loans, deposits of $10.6 billion, and total stockholders’ equity of $929 million.
KEY QUOTE:
“We want to thank all of our new investor partners for their effort and significant confidence in First Foundation and our talented employees. We very much look forward to building a top tier regional bank and creating long term shareholder value.”
- Scott F. Kavanaugh, President and CEO of the company
