UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 10-Q

(Mark One)

☒	QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended September 30, 2024

☐	TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from to

Commission File Number 001-36461

FIRST FOUNDATION INC.

(Exact name of Registrant as specified in its charter)


Delaware		20-8639702
(State or other jurisdiction of incorporation or organization)		(I.R.S. Employer Identification Number)

200 Crescent Court, Suite 1400 Dallas, Texas		75201
(Address of principal executive offices)		(Zip Code)

Registrant’s telephone number, including area code: (469) 638-9636

Securities registered pursuant to Section 12(b) of the Act:


Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock	FFWM	New York Stock Exchange

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports); and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.



Large accelerated filer	☐	Accelerated filer	☒
Non-accelerated filer	☐	Smaller reporting company	☐
		Emerging growth company	☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

As of November 1, 2024, the registrant had 82,345,084 shares of common stock, $0.001 par value per share, outstanding.


		Page No.
Part I. Financial Information
Item 1.	Financial Statements	1
Item 2	Management’s Discussion and Analysis of Financial Condition and Results of Operations	36
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	64
Item 4.	Controls and Procedures	64

Part II. Other Information
Item 1	Legal Proceedings	65
Item 1A	Risk Factors	65
Item 2	Unregistered Sales of Equity Securities and Use of Proceeds	65
Item 5	Other Information	65
Item 6	Exhibits	66

SIGNATURES		S-1


	September 30,		December 31,
	2024		2023
		(unaudited)
ASSETS
Cash and cash equivalents	$	1,106,422	$	1,326,629

Securities available-for-sale ("AFS"), at fair value (amortized cost of $1,313,589 and $731,489 at September 30, 2024 and December 31, 2023 respectively; net of allowance for credit losses of $7,299 and $8,220 at September 30, 2024 and December 31, 2023 respectively)		1,306,120		703,226
Securities held-to-maturity ("HTM") (fair value of $675,768 and $710,021 at September 30, 2024 and December 31, 2023, respectively)		734,863		789,578
Loans held for sale		1,788,395		—
Loans held for investment		8,088,863		10,177,802
Less: Allowance for credit losses		(29,300)		(29,205)
Total loans held for investment, net		8,059,563		10,148,597

Investment in FHLB stock		37,810		24,613
Accrued interest receivable		53,766		54,163
Deferred taxes		65,131		29,142
Premises and equipment, net		36,605		39,925
Real estate owned ("REO")		6,210		8,381
Bank owned life insurance		49,650		48,653
Core deposit intangibles		3,888		4,948
Other assets		128,138		149,393
Total Assets	$	13,376,561	$	13,327,248

LIABILITIES AND SHAREHOLDERS’ EQUITY
Liabilities:
Deposits	$	10,304,604	$	10,688,932
Borrowings		1,691,453		1,409,056
Subordinated debt		173,444		173,397
Derivative liabilities		5,124		—
Accounts payable and other liabilities		132,139		130,520
Total Liabilities		12,306,764		12,401,905

Shareholders’ Equity
Preferred stock, $0.001 par value, 44,301 shares issued and outstanding at September 30, 2024		130,252		—
Common stock, $0.001 par value; 200,000,000 shares authorized at September 30, 2024 and 100,000,000 shares authorized at December 31, 2023; 67,855,084 shares and 56,467,623 shares issued and outstanding, respectively		68		56
Additional paid-in-capital		805,819		720,899
Retained earnings		139,148		218,575
Accumulated other comprehensive loss		(5,490)		(14,187)
Total Shareholders’ Equity		1,069,797		925,343
Total Liabilities and Shareholders’ Equity	$	13,376,561	$	13,327,248


	Quarter Ended				Nine Months Ended
	September 30,				September 30,
	2024		2023		2024		2023
Interest income:
Loans	$	120,285	$	124,363	$	358,973	$	368,477
Securities		21,375		10,600		59,124		24,263
FHLB Stock, fed funds sold and interest-bearing deposits		15,496		9,802		40,426		34,353
Total interest income		157,156		144,765		458,523		427,093

Interest expense:
Deposits		89,135		84,814		275,015		219,886
Borrowings		17,182		6,158		47,044		42,280
Subordinated debt		1,720		1,720		5,130		5,115
Total interest expense		108,037		92,692		327,189		267,281

Net interest income		49,119		52,073		131,334		159,812

Provision (reversal) for credit losses		282		(2,015)		53		(711)

Net interest income after provision for credit losses		48,837		54,088		131,281		160,523

Noninterest income:
Asset management, consulting and other fees		9,162		8,812		26,959		26,624
(Loss) gain on sale of loans		(13)		—		665		—
Gain on sale of securities available-for-sale		—		—		1,204		—
Capital market activities		(117,517)		—		(115,844)		—
Gain on sale of REO		—		—		679		—
Other income		2,788		2,886		7,098		8,851
Total noninterest income		(105,580)		11,698		(79,239)		35,475

Noninterest expense:
Compensation and benefits		20,009		19,632		58,511		65,944
Occupancy and depreciation		9,013		9,253		27,126		27,331
Professional services and marketing costs		5,095		3,748		12,152		11,685
Customer service costs		18,954		24,683		45,796		60,402
Goodwill impairment		—		—		—		215,252
Other expenses		7,154		6,890		22,878		15,696
Total noninterest expense		60,225		64,206		166,463		396,310

(Loss) income before income taxes		(116,968)		1,580		(114,421)		(200,312)
Income tax (benefit) expense		(34,794)		(600)		(36,125)		1,300
Net (loss) income	$	(82,174)	$	2,180	$	(78,296)	$	(201,612)

Net (loss) income per share:
Basic	$	(1.23)	$	0.04	$	(1.30)	$	(3.57)
Diluted	$	(1.23)	$	0.04	$	(1.30)	$	(3.57)
Shares used in computation:
Basic		66,992,701		56,443,539		60,025,852		56,417,252
Diluted		66,992,701		56,449,720		60,025,852		56,417,252


	Common Stock			Preferred Stock			Convertible Warrants			Additional				Accumulated Other
	Number			Number			Number			Paid-in		Retained		Comprehensive
	of Shares	Amount		of Shares	Amount		of Warrants	Amount		Capital		Earnings		Income (Loss)		Total
Balance: December 31, 2023	56,467,623	$	56	—	$	—	—	$	—	$	720,899	$	218,575	$	(14,187)	$	925,343
Net loss	—		—	—		—	—		—		—		(78,296)		—		(78,296)
Other comprehensive gain	—		—	—		—	—		—		—		—		8,697		8,697
Stock based compensation	—		—	—		—	—		—		845		—		—		845
Cash dividend	—		—	—		—	—		—		—		(1,131)		—		(1,131)
Issuance of common stock:
Stock grants – vesting of restricted stock units	97,780		1	—		—	—		—		—		—		—		1
Issuance of common stock	11,308,676		11	—		—	—		—		35,307		—		—		35,318
Issuance of preferred shares	—		—	44,301		138,462	—		—		—		—		—		138,462
Issuance of warrants	—		—	—		—	6		54,219		—		—		—		54,219
Issuance costs	—		—	—		(8,210)	—		(3,215)		(2,094)		—		—		(13,519)
Repurchase of shares from restricted shares vesting	(18,995)		—	—		—	—		—		(142)		—		—		(142)
Balance: September 30, 2024	67,855,084	$	68	44,301	$	130,252	6	$	51,004	$	754,815	$	139,148	$	(5,490)	$	1,069,797

Balance: June 30, 2024	56,543,382	$	57	—	$	—	—	$	—	$	721,814	$	221,321	$	(9,948)	$	933,244
Net loss	—		—	—		—	—		—		—		(82,174)		—		(82,174)
Other comprehensive gain	—		—	—		—	—		—		—		—		4,458		4,458
Stock based compensation	—		—	—		—	—		—		(212)		—		—		(212)
Cash dividend	—		—	—		—	—		—		—		—		—		—
Issuance of common stock:
Stock grants – vesting of restricted stock units	3,026		—	—		—	—		—		—		1		—		1
Issuance of common stock	11,308,676		11	—		—	—		—		35,307		—		—		35,318
Issuance of preferred shares	—		—	44,301		138,462	—		—		—		—		—		138,462
Issuance of warrants	—		—	—		—	6		54,219		—		—		—		54,219
Issuance costs	—		—	—		(8,210)	—		(3,215)		(2,094)		—		—		(13,519)
Balance: September 30, 2024	67,855,084	$	68	44,301	$	130,252	6	$	51,004	$	754,815	$	139,148	$	(5,490)	$	1,069,797

Balance: December 31, 2022	56,325,242	$	56	—	$	—	—	$	—	$	719,606	$	426,659	$	(11,943)	$	1,134,378
Net loss	—		—	—		—	—		—		—		(201,612)		—		(201,612)
Other comprehensive loss	—		—	—		—	—		—		—		—		(5,853)		(5,853)
Stock based compensation	—		—	—		—	—		—		1,129		—		—		1,129
Cash dividend	—		—	—		—	—		—		—		(8,456)		—		(8,456)
Issuance of common stock:
Exercise of options	19,500		—	—		—	—		—		157		—		—		157
Stock grants – vesting of restricted stock units	134,386		—	—		—	—		—		—		—		—		—
Repurchase of shares from restricted shares vesting	(35,354)		—	—		—	—		—		(536)		—		—		(536)
Balance: September 30, 2023	56,443,774	$	56	—	$	—	—	$	—	$	720,356	$	216,591	$	(17,796)	$	919,207

Balance: June 30, 2023	56,443,070	$	56	—	$	—	—		—	$	719,779	$	215,540	$	(19,841)	$	915,534
Net income	—		—	—		—	—		—		—		2,180		—		2,180
Other comprehensive gain	—		—	—		—	—		—		—		—		2,045		2,045
Stock based compensation	—		—	—		—	—		—		577		—		—		577
Cash dividend	—		—	—		—	—		—		—		(1,129)		—		(1,129)
Issuance of common stock:
Stock grants – vesting of restricted stock units	1,000		—	—		—	—		—		—		—		—		—
Repurchase of shares from restricted shares vesting	(296)		—	—		—	—		—		—		—		—		—
Balance: September 30, 2023	56,443,774	$	56	—	$	—	—	$	—	$	720,356	$	216,591	$	(17,796)	$	919,207


	Quarter Ended September 30,				Nine Months Ended September 30,
	2024		2023		2024		2023
Net (loss) income	$	(82,174)	$	2,180	$	(78,296)	$	(201,612)
Other comprehensive income (loss), net of tax:
Unrealized holding gains (losses) on securities arising during the period		15,874		2,137		14,908		(4,848)
Reclassification adjustment for gain included in net income		—		—		(852)		—
Total change in unrealized gain (loss) on available-for-sale securities		15,874		2,137		14,056		(4,848)
Unrealized loss on cash flow hedge arising during this period		(11,391)		—		(5,124)		—
Amortization of unrealized loss on securities transferred from available-for-sale to held-to-maturity		(25)		(92)		(235)		(1,005)
Total other comprehensive income (loss)		4,458		2,045		8,697		(5,853)
Total comprehensive (loss) income	$	(77,716)	$	4,225	$	(69,599)	$	(207,465)


	For the Nine Months Ended
	September 30,
	2024		2023
Cash Flows from Operating Activities:
Net loss	$	(78,296)	$	(201,612)
Adjustments to reconcile net loss to net cash provided by operating activities:
Goodwill impairment		—		215,252
Provision for credit losses		1,358		2
Provision (reversal) for credit losses - securities AFS		(921)		1,022
Stock–based compensation expense		845		1,129
Depreciation and amortization		3,604		3,240
Deferred tax benefit		(41,801)		(5,756)
Amortization of discount on securities		(10,513)		(2,783)
Amortization of core deposit intangible		1,060		1,246
Amortization of mortgage servicing rights - net		1,497		1,667
Gain on sale of REO		(679)		—
Gain on sale of loans		(665)		—
Gain on sale of securities available-for-sale		(1,204)		—
Gain from hedging activities		(1,672)		—
LHFS LOCOM adjustment at time of transfer		136,683		—
Change in fair value of LHFS		(19,167)		—
Amortization of OCI - securities transfer to HTM		(235)		1,005
Valuation allowance on mortgage servicing rights - net		—		(1,441)
Decrease in accrued interest receivable and other assets		16,283		15,262
Increase in accounts payable and other liabilities		6,129		13,955
Net cash provided by operating activities		12,306		42,188
Cash Flows from Investing Activities:
Net decrease in loans		173,697		438,567
Proceeds from sale of loans		8,770		—
Proceeds from sale of REO		2,850		—
Purchase of premises and equipment		(2,362)		(6,303)
Disposals of premises and equipment		37		—
Proceeds from sale of land		1,650		—
Loss on sale of land		391		—
Purchases of securities AFS		(1,771,075)		(617,506)
Proceeds from sale of securities available-for-sale		749,020		—
Maturities of securities AFS		452,464		13,668
Maturities of securities HTM		53,919		62,164
Net (increase) decrease in FHLB stock		(13,197)		748
Net cash used in investing activities		(343,836)		(108,662)
Cash Flows from Financing Activities:
Increase (decrease) in deposits		(384,328)		449,582
Proceeds from FHLB & FRB advances		2,793,476		87,506,041
Repayments on FHLB & FRB advances		(2,471,846)		(87,411,041)
Net change in federal funds purchased		—		(200,000)
Net decrease in line of credit		—		(8,000)
Net increase in subordinated debt		47		47
Net decrease in repurchase agreements		(39,233)		(99,313)
Dividends paid		(1,131)		(8,456)
Proceeds from exercise of stock options		—		157
Proceeds from issuance of common stock		35,318		—
Proceeds from issuance of preferred stock		138,462		—
Proceeds from issuance of convertible warrants		54,219		—
Equity issuance costs		(13,519)		—
Repurchase of stock		(142)		(536)
Net cash provided by financing activities		111,323		228,481
Increase (decrease) in cash and cash equivalents		(220,207)		162,007
Cash and cash equivalents at beginning of year		1,326,629		656,494
Cash and cash equivalents at end of period	$	1,106,422	$	818,501
Supplemental disclosures of cash flow information:
Cash paid during the period for:
Income taxes	$	197	$	—
Interest		280,746		223,654
Noncash transactions:
Transfer of loans to loans held for sale	$	136,684	$	—
Right of use lease assets and liabilities recognized		7,372		1,019
Chargeoffs against allowance for credit losses - loans		1,226		4,273
Chargeoffs against allowance for credit losses - securities		—		3,971


			Fair Value Measurement Level
(dollars in thousands)	Total		Level 1		Level 2		Level 3
September 30, 2024:
Investment securities available-for-sale:
Collateralized mortgage obligations	$	10,318	$	—	$	10,318	$	—
Agency mortgage-backed securities		1,108,337		—		1,108,337		—
Municipal bonds		46,799		—		46,799		—
SBA securities		9,627		—		9,627		—
Beneficial interests in FHLMC securitization		6,968		—		—		6,968
Corporate bonds		122,797		—		122,797		—
U.S. Treasury		1,274		1,274		—		—
Total assets at fair value on a recurring basis	$	1,306,120	$	1,274	$	1,297,878	$	6,968

Derivative liabilities:
Cash flow hedge	$	5,124	$	—	$	5,124	$	—

December 31, 2023:
Investment securities available-for-sale:
Collateralized mortgage obligations	$	7,605	$	—	$	7,605	$	—
Agency mortgage-backed securities		107,347		—		107,347		—
Municipal bonds		46,436		—		46,436		—
SBA securities		13,527		—		13,527		—
Beneficial interests in FHLMC securitization		7,241		—		—		7,241
Corporate bonds		122,280		—		122,280		—
U.S. Treasury		398,790		398,790		—		—
Total assets at fair value on a recurring basis	$	703,226	$	398,790	$	297,195	$	7,241


	Carrying		Fair Value Measurement Level
(dollars in thousands)	Value		1		2		3		Total
September 30, 2024:
Assets:
Cash and cash equivalents	$	1,106,422	$	1,106,422	$	—	$	—	$	1,106,422
Securities AFS, net		1,306,120		1,275		1,297,877		6,968		1,306,120
Securities HTM		734,863		—		675,768		—		675,768
Loans held for sale		1,788,395		—		—		1,788,395		1,788,395
Loans, net		8,059,563		—		4,922		7,746,825		7,751,747
Investment in FHLB stock		37,810		—		37,810		—		37,810
Investment in equity securities		11,780		—		—		11,780		11,780
Accrued interest receivable		53,766		53,766		—		—		53,766
Liabilities:
Deposits	$	10,304,604	$	8,131,079	$	2,601,375	$	—	$	10,732,454
Borrowings		1,691,453		1,729,848		—		—		1,729,848
Subordinated debt		173,444		—		—		138,978		138,978
Accrued interest payable		46,438		46,438		—		—		46,438
Derivative liabilities		5,124		—		5,124		—		5,124

December 31, 2023:
Assets:
Cash and cash equivalents	$	1,326,629	$	1,326,629	$	—	$	—	$	1,326,629
Securities AFS, net		703,226		398,790		297,194		7,242		703,226
Securities HTM		789,578		—		710,021		—		710,021
Loans, net		10,148,597		—		—		9,827,508		9,827,508
Investment in FHLB stock		24,613		—		24,613		—		24,613
Investment in equity securities		11,768		—		—		11,768		11,768
Accrued interest receivable		54,163		54,163		—		—		54,163
Liabilities:
Deposits	$	10,688,932	$	7,545,262	$	3,145,870	$	—	$	10,691,132
Borrowings		1,409,056		609,056		800,000		—		1,409,056
Subordinated debt		173,397		—		—		136,002		136,002
Accrued interest payable		42,177		42,177		—		—		42,177


	Amortized		Gross Unrealized				Allowance for		Estimated
(dollars in thousands)	Cost		Gains		Losses		Credit Losses		Fair Value
September 30, 2024:
Collateralized mortgage obligations	$	11,251	$	26	$	(959)	$	—	$	10,318
Agency mortgage-backed securities		1,094,633		13,966		(262)		—		1,108,337
Municipal bonds		49,174		—		(2,375)		—		46,799
SBA securities		9,688		5		(66)		—		9,627
Beneficial interests in FHLMC securitization		13,758		21		(333)		(6,478)		6,968
Corporate bonds		133,786		—		(10,168)		(821)		122,797
U.S. Treasury		1,299		—		(25)		—		1,274
Total	$	1,313,589	$	14,018	$	(14,188)	$	(7,299)	$	1,306,120

December 31, 2023:
Collateralized mortgage obligations	$	8,946	$	—	$	(1,341)	$	—	$	7,605
Agency mortgage-backed securities		106,733		1,028		(414)		—		107,347
Municipal bonds		49,473		—		(3,037)		—		46,436
SBA securities		13,631		2		(106)		—		13,527
Beneficial interests in FHLMC securitization		14,473		4		(418)		(6,818)		7,241
Corporate bonds		138,858		—		(15,176)		(1,402)		122,280
U.S. Treasury		399,375		—		(585)		—		398,790
Total	$	731,489	$	1,034	$	(21,077)	$	(8,220)	$	703,226


	Amortized		Gross Unrecognized				Allowance for		Estimated
(dollars in thousands)	Cost		Gains		Losses		Credit Losses		Fair Value
September 30, 2024:
Agency mortgage-backed securities	$	734,863	$	—	$	(59,095)	$	—	$	675,768
Total	$	734,863	$	—	$	(59,095)	$	—	$	675,768

December 31, 2023:
Agency mortgage-backed securities	$	789,578	$	1	$	(79,558)	$	—	$	710,021
Total	$	789,578	$	1	$	(79,558)	$	—	$	710,021


	Securities with Unrecognized Loss at September 30, 2024
	Less than 12 months				12 months or more				Total
	Fair		Unrecognized		Fair		Unrecognized		Fair		Unrecognized
(dollars in thousands)	Value		Loss		Value		Loss		Value		Loss
Agency mortgage-backed securities	$	18,146	$	(87)	$	657,622	$	(59,008)	$	675,768	$	(59,095)
Total	$	18,146	$	(87)	$	657,622	$	(59,008)	$	675,768	$	(59,095)


	1 Year or			More than 1 Year			More than 5 Years			More than
(dollars in thousands)	Less			through 5 Years			through 10 Years			10 Years			Total
September 30, 2024
Amortized Cost:
Collateralized mortgage obligations	$	—		$	277		$	171		$	10,803		$	11,251
Agency mortgage-backed securities		102			3,238			—			1,091,293			1,094,633
Municipal bonds		500			15,318			31,118			2,238			49,174
SBA securities		—			474			414			8,800			9,688
Beneficial interests in FHLMC securitization		3,130			4,809			—			5,819			13,758
Corporate bonds		—			61,957			66,304			5,525			133,786
U.S. Treasury		799			500			—			—			1,299
Total	$	4,531		$	86,573		$	98,007		$	1,124,478		$	1,313,589
Weighted average yield		0.82	%		5.98	%		3.01	%		5.49	%		5.32	%
Estimated Fair Value:
Collateralized mortgage obligations	$	—		$	261		$	166		$	9,891		$	10,318
Agency mortgage-backed securities		101			3,137			—			1,105,098			1,108,336
Municipal bonds		500			14,900			29,520			1,879			46,799
SBA securities		—			472			414			8,741			9,627
Beneficial interests in FHLMC securitization		3,130			4,809			—			5,507			13,446
Corporate bonds		—			59,121			60,165			4,332			123,618
U.S. Treasury		796			479			—			—			1,275
Total	$	4,527		$	83,179		$	90,265		$	1,135,448		$	1,313,419


	1 Year or			More than 1 Year			More than 5 Years			More than
(dollars in thousands)	Less			through 5 Years			through 10 Years			10 Years			Total
December 31, 2023
Amortized Cost:
Collateralized mortgage obligations	$	—		$	—		$	513		$	8,433		$	8,946
Agency mortgage-backed securities		141			4,364			—			102,228			106,733
Municipal bonds		—			9,672			36,103			3,698			49,473
SBA securities		—			944			623			12,064			13,631
Beneficial interests in FHLMC securitization		3,315			5,380			—			5,778			14,473
Corporate bonds		5,012			60,444			67,872			5,530			138,858
U.S. Treasury		398,676			699			—			—			399,375
Total	$	407,144		$	81,503		$	105,111		$	137,731		$	731,489
Weighted average yield		5.47	%		6.46	%		2.90	%		5.94	%		5.30	%
Estimated Fair Value:
Collateralized mortgage obligations	$	—		$	—		$	466		$	7,139		$	7,605
Agency mortgage-backed securities		137			4,134			—			103,076			107,347
Municipal bonds		—			9,231			34,142			3,063			46,436
SBA securities		—			936			622			11,969			13,527
Beneficial interests in FHLMC securitization		3,315			5,380			—			5,364			14,059
Corporate bonds		4,973			58,337			56,395			3,977			123,682
U.S. Treasury		398,135			655			—			—			398,790
Total	$	406,560		$	78,673		$	91,625		$	134,588		$	711,446


	1 Year or			More than 1 Year			More than 5 Years			More than
(dollars in thousands)	Less			through 5 Years			through 10 Years			10 Years			Total
September 30, 2024
Amortized Cost:
Agency mortgage-backed securities	$	—		$	4,949		$	9,364		$	720,550		$	734,863
Total	$	—		$	4,949		$	9,364		$	720,550		$	734,863
Weighted average yield		—	%		0.95	%		1.54	%		2.32	%		2.30	%

Estimated Fair Value:
Agency mortgage-backed securities	$	—		$	4,705		$	8,744		$	662,319		$	675,768
Total	$	—		$	4,705		$	8,744		$	662,319		$	675,768


	Securities with Unrealized Loss at September 30, 2024
	Less than 12 months				12 months or more				Total
	Fair		Unrealized		Fair		Unrealized		Fair		Unrealized
(dollars in thousands)	Value		Loss		Value		Loss		Value		Loss
Collateralized mortgage obligations	$	—	$	—	$	7,360	$	(959)	$	7,360	$	(959)
Agency mortgage-backed securities		1,803		(9)		4,668		(253)		6,471		(262)
Municipal bonds		1,698		(34)		44,600		(2,341)		46,298		(2,375)
SBA securities		151		—		8,170		(66)		8,321		(66)
Beneficial interests in FHLMC securitization		—		—		4,145		(333)		4,145		(333)
Corporate bonds		28,189		(1,811)		95,429		(8,357)		123,618		(10,168)
U.S. Treasury		—		—		1,275		(25)		1,275		(25)
Total	$	31,841	$	(1,854)	$	165,647	$	(12,334)	$	197,488	$	(14,188)


	Securities with Unrealized Loss at December 31, 2023
	Less than 12 months				12 months or more				Total
	Fair		Unrealized		Fair		Unrealized		Fair		Unrealized
(dollars in thousands)	Value		Loss		Value		Loss		Value		Loss
Collateralized mortgage obligations	$	—	$	—	$	7,606	$	(1,341)	$	7,606	$	(1,341)
Agency mortgage-backed securities		—		—		5,710		(414)		5,710		(414)
Municipal bonds		1,779		(26)		42,847		(3,011)		44,626		(3,037)
SBA securities		353		—		12,025		(106)		12,378		(106)
Beneficial interests in FHLMC securitization		—		—		4,041		(418)		4,041		(418)
Corporate bonds		14,847		(153)		108,832		(15,023)		123,679		(15,176)
U.S. Treasury		397,942		(534)		848		(51)		398,790		(585)
Total	$	414,921	$	(713)	$	181,909	$	(20,364)	$	596,830	$	(21,077)


	Securities with Unrecognized Loss at December 31, 2023
	Less than 12 months				12 months or more				Total
	Fair		Unrecognized		Fair		Unrecognized		Fair		Unrecognized
(dollars in thousands)	Value		Loss		Value		Loss		Value		Loss
Agency mortgage-backed securities	$	—	$	—	$	689,454	$	(79,558)	$	689,454	$	(79,558)
Total	$	—	$	—	$	689,454	$	(79,558)	$	689,454	$	(79,558)


		Beginning		Provision (Reversal)						Ending
(dollars in thousands)		Balance		for Credit Losses		Charge-offs		Recoveries		Balance

Three Months Ended September 30, 2024:
Beneficial interests in FHLMC securitization	$	6,502	$	(24)	$	—	$	—	$	6,478
Corporate bonds		840		(19)		—		—		821
Total	$	7,342	$	(43)	$	—	$	—	$	7,299

Nine Months Ended September 30, 2024:
Beneficial interests in FHLMC securitization	$	6,818	$	(340)	$	—	$	—	$	6,478
Corporate bonds		1,402		(581)		—		—		821
Total	$	8,220	$	(921)	$	—	$	—	$	7,299

Three Months Ended September 30, 2023:
Municipal bonds	$	—	$	1	$	—	$	—	$	1
Beneficial interests in FHLMC securitization		7,058		40		—		—		7,098
Corporate bonds		1,477		(86)		—		—		1,391
Total	$	8,535	$	(45)	$	—	$	—	$	8,490

Nine Months Ended September 30, 2023:
Municipal bonds	$	—	$	1	$	—	$	—	$	1
Beneficial interests in FHLMC securitization		11,439		(370)		(3,971)		—		7,098
Corporate bonds		—		1,391		—		—		1,391
Total	$	11,439	$	1,022	$	(3,971)	$	—	$	8,490


	Past Due and Still Accruing												Total Past
							90 Days						Due and
(dollars in thousands)	30–59 Days			60-89 Days			or More			Nonaccrual			Nonaccrual			Current		Total
September 30, 2024:
Real estate loans:
Residential properties	$	1,887		$	—		$	—		$	20,357		$	22,244		$	4,198,803	$	4,221,047
Commercial properties		9,046			—			—			9,145			18,191			933,976		952,167
Land and construction		—			—			—			—			—			80,153		80,153
Commercial and industrial loans		8,088			10,138			—			8,704			26,930			2,807,701		2,834,631
Consumer loans		—			—			—			—			—			865		865
Total	$	19,021		$	10,138		$	—		$	38,206		$	67,365		$	8,021,498	$	8,088,863

Percentage of total loans		0.24	%		0.13	%		—	%		0.47	%		0.83	%

December 31, 2023:
Real estate loans:
Residential properties	$	93		$	416		$	—		$	112		$	621		$	6,196,923	$	6,197,544
Commercial properties		27,403			403			1,730			2,915			32,451			954,321		986,772
Land and construction		—			—			—			—			—			136,827		136,827
Commercial and industrial loans		525			88			—			8,804			9,417			2,845,845		2,855,262
Consumer loans		—			—			—			—			—			1,397		1,397
Total	$	28,021		$	907		$	1,730		$	11,831		$	42,489		$	10,135,313	$	10,177,802

Percentage of total loans		0.28	%		0.01	%		0.02	%		0.12	%		0.42	%


	Nonaccrual		Nonaccrual
	with Allowance		with no Allowance
(dollars in thousands)	for Credit Losses		for Credit Losses
September 30, 2024:
Real estate loans:
Residential properties	$	883	$	19,474
Commercial properties		9,145		—
Commercial and industrial loans		8,704		—
Total	$	18,732	$	19,474

December 31, 2023:
Real estate loans:
Residential properties	$	—	$	112
Commercial properties		—		2,915
Commercial and industrial loans		7,406		1,398
Total	$	7,406	$	4,425


	September 30, 2024:
	Term Extension
		Amortized Cost Basis	% of Total Class of Loans		Financial Effect
Residential loans	$	6	—	%	1 loan with term extension of 22 months.
Commercial real estate loans		12,900	1.40	%	1 loan with term extension of 10 months.
Commercial and industrial loans		2,294	—	%	6 loans with various extensions of loan maturity ranging from 3 to 60 months and payment deferral. 1 loan with 3-month extension and 3-month forbearance. 1 loan with $100 payments through 3 months.
Total	$	15,200

	Combination
		Amortized Cost Basis	% of Total Class of Loans		Financial Effect
Commercial and industrial loans	$	9,568	0.40	%	5 loans with various extensions of loan maturity ranging from 6 to 7 months and payment deferral. 1 loan with 5 month forbearance and interest rate reduction. 2 loans with $100 payments through 3 months with payment deferral. 2 loans with term extension of 12 months and payment deferral.
Total	$	9,568

	Total
		Amortized Cost Basis	% of Total Class of Loans
Residential loans	$	6	—	%
Commercial real estate loans		12,900	1.40	%
Commercial and industrial loans		11,862	0.40	%
Total	$	24,768

	September 30, 2023:
	Term Extension
		Amortized Cost Basis	% of Total Class of Loans		Financial Effect
Commercial and industrial loans	$	5,770	0.20	%	1 loan with 3-month extension
Total	$	5,770

	Payment Deferrals
		Amortized Cost Basis	% of Total Class of Loans		Financial Effect
Commercial and industrial loans	$	400	—	%	4 loans each with partial payment deferrals for 3 months
Total	$	400

	Combination
		Amortized Cost Basis	% of Total Class of Loans		Financial Effect
Commercial real estate loans	$	645	0.10	%	1 loan with 10 year term extension and interest reduction
Total	$	645

	Total
		Amortized Cost Basis	% of Total Class of Loans
Commercial real estate loans	$	645	0.10	%
Commercial and industrial loans	$	6,170	0.20	%
Total	$	6,815


	September 30, 2024:
	Combination
		# of Loans Defaulted		Amortized Cost Basis
Commercial and industrial loans		2	$	2,229
Total		2	$	2,229

	Total
		# of Loans Defaulted		Amortized Cost Basis
Commercial and industrial loans		2	$	2,229
Total		2	$	2,229

	September 30, 2023:
	Payment Deferrals
		# of Loans Defaulted		Amortized Cost Basis
Commercial and industrial loans		1	$	1,339
Total		1	$	1,339

	Combination
		# of Loans Defaulted		Amortized Cost Basis
Commercial and industrial loans		1	$	950
Total		1	$	950

	Total
		# of Loans Defaulted		Amortized Cost Basis
Commercial and industrial loans		2	$	2,289
Total		2	$	2,289


			30-89 Days		90+ Days
(dollars in thousands)		Current	Past Due		Past Due			Nonaccrual	Total
September 30, 2024:
Residential loans	$	253	$	—	$	—	$	—	$	253
Commercial real estate loans		12,900		—		—		—		12,900
Commercial and industrial loans		6,104		7,060		—		8,252		21,416
Total	$	19,257	$	7,060	$	—	$	8,252	$	34,569


			Provision
	Beginning		(Reversal) for						Ending
(dollars in thousands)	Balance		Credit Losses		Charge-offs		Recoveries		Balance
Three Months Ended September 30, 2024:
Real estate loans:
Residential properties	$	9,013	$	(2,010)	$	—	$	—	$	7,003
Commercial properties		6,086		493		—		—		6,579
Land and construction		77		(17)		—		—		60
Commercial and industrial loans		14,104		1,809		(341)		80		15,652
Consumer loans		15		14		(23)		—		6
Total	$	29,295	$	289	$	(364)	$	80	$	29,300

Nine Months Ended September 30, 2024:
Real estate loans:
Residential properties	$	9,921	$	(2,918)	$	—	$	—	$	7,003
Commercial properties		4,148		2,431		—		—		6,579
Land and construction		332		(272)		—		—		60
Commercial and industrial loans		14,796		1,676		(1,203)		383		15,652
Consumer loans		8		20		(23)		1		6
Total	$	29,205	$	937	$	(1,226)	$	384	$	29,300

Three Months Ended September 30, 2023:
Real estate loans:
Residential properties	$	8,234		140		—		—	$	8,374
Commercial properties		5,253		(979)		—		—		4,274
Land and construction		287		(13)		—		—		274
Commercial and industrial loans		17,690		(1,070)		(1,183)		814		16,251
Consumer loans		21		—		—		1		22
Total	$	31,485	$	(1,922)	$	(1,183)	$	815	$	29,195

Nine Months Ended September 30, 2023:
Real estate loans:
Residential properties	$	8,306	$	68	$	—	$	—	$	8,374
Commercial properties		8,714		(4,191)		(249)		—		4,274
Land and construction		164		110		—		—		274
Commercial and industrial loans		16,521		2,019		(4,022)		1,733		16,251
Consumer loans		26		(4)		(2)		2		22
Total	$	33,731	$	(1,998)	$	(4,273)	$	1,735	$	29,195


					Equipment/					ACL
(dollars in thousands)	Real Estate		Cash		Receivables		Total			Allocation
September 30, 2024:
Loans secured by real estate:
Residential properties
Single family	$	244	$	—	$	—	$	244	$	—
Commercial real estate loans		5,462		—		—		5,462		964
Commercial loans		—		—		—		—		—
Total	$	5,706	$	—	$	—	$	5,706	$	964

December 31, 2023:
Loans secured by real estate:
Commercial real estate loans	$	2,523	$	—	$	—	$	2,523	$	—
Commercial loans		—		250		978		1,228		—
Total	$	2,523	$	250	$	978	$	3,751	$	—


													Revolving
(dollars in thousands)	2024		2023		2022		2021		2020		Prior		Loans		Total
September 30, 2024:
Loans secured by real estate:
Residential
Multifamily
Pass	$	73,086	$	542	$	1,712,559	$	789,647	$	394,488	$	273,934	$	—	$	3,244,256
Special mention		—		—		—		6,489		11,628		51,471		—		69,588
Substandard		—		—		—		—		—		14,070		—		14,070
Total	$	73,086	$	542	$	1,712,559	$	796,136	$	406,116	$	339,475	$	—	$	3,327,914
Gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—

Single family
Pass	$	2,999	$	10,030	$	248,194	$	260,156	$	91,456	$	212,099	$	45,767	$	870,701
Special mention		—		—		—		—		—		1,403		—		1,403
Substandard		—		—		—		—		—		20,905		124		21,029
Total	$	2,999	$	10,030	$	248,194	$	260,156	$	91,456	$	234,407	$	45,891	$	893,133
Gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—

Commercial real estate
Pass	$	2,437	$	2,408	$	224,226	$	116,802	$	143,541	$	419,491	$	—	$	908,905
Special mention		—		—		—		1,198		2,225		843		—		4,266
Substandard		—		12,900		—		111		1,274		24,711		—		38,996
Total	$	2,437	$	15,308	$	224,226	$	118,111	$	147,040	$	445,045	$	—	$	952,167
Gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—

Land and construction
Pass	$	108	$	24,962	$	32,067	$	8,078	$	9,190	$	5,748	$	—	$	80,153
Special mention		—		—		—		—		—		—		—		—
Substandard		—		—		—		—		—		—		—		—
Total	$	108	$	24,962	$	32,067	$	8,078	$	9,190	$	5,748	$	—	$	80,153
Gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—

Commercial
Pass	$	58,523	$	148,702	$	1,012,681	$	251,189	$	92,598	$	35,695	$	1,171,997	$	2,771,385
Special mention		721		8,134		8,499		24,368		17		619		3,976		46,334
Substandard		116		34		68		804		3,686		2,490		9,714		16,912
Total	$	59,360	$	156,870	$	1,021,248	$	276,361	$	96,301	$	38,804	$	1,185,687	$	2,834,631
Gross charge-offs	$	—	$	179	$	678	$	303	$	43	$	—	$	—	$	1,203

Consumer
Pass	$	24	$	7	$	—	$	516	$	—	$	52	$	266	$	865
Special mention		—		—		—		—		—		—		—		—
Substandard		—		—		—		—		—		—		—		—
Total	$	24	$	7	$	—	$	516	$	—	$	52	$	266	$	865
Gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	23	$	23

Total loans
Pass	$	137,177	$	186,651	$	3,229,727	$	1,426,388	$	731,273	$	947,019	$	1,218,030	$	7,876,265
Special mention		721		8,134		8,499		32,055		13,870		54,336		3,976		121,591
Substandard		116		12,934		68		915		4,960		62,176		9,838		91,007
Total	$	138,014	$	207,719	$	3,238,294	$	1,459,358	$	750,103	$	1,063,531	$	1,231,844	$	8,088,863
Gross charge-offs	$	—	$	179	$	678	$	303	$	43	$	—	$	23	$	1,226


	September 30, 2024				December 31, 2023
			Weighted				Weighted
(dollars in thousands)	Amount		Average Rate		Amount		Average Rate
Demand deposits:
Noninterest-bearing	$	2,136,442	—		$	1,467,806	—
Interest-bearing		1,999,229	3.66	%		2,881,786	2.94	%
Money market and savings		3,543,668	3.93	%		3,195,670	3.81	%
Certificates of deposit		2,625,265	4.77	%		3,143,670	4.87	%
Total	$	10,304,604	3.28	%	$	10,688,932	3.36	%


	September 30, 2024		December 31, 2023
Large Denomination Certificates of Deposit Maturity Distribution	(dollars in thousands)

3 months or less	$	60,095	$	343,078
Over 3 months through 6 months		75,036		24,126
Over 6 months through 12 months		63,479		56,415
Over 12 months		10,562		30,994
Total	$	209,172	$	454,613


		Current		Current			Carrying Value
	Stated	Interest		Principal			September 30,		December 31,
(dollars in thousands)	Maturity	Rate		Balance		2024		2023
Subordinated notes
Subordinated notes due 2032, 3.50% per annum until February 1, 2027, 3-month SOFR + 2.04% thereafter	February 1, 2032	3.50	%	$	150,000	$	148,238	$	148,058
Subordinated notes due 2030, 6.0% per annum until June 30, 2025, 3-month SOFR + 5.90% thereafter.	June 30, 2030	6.00	%		24,165		25,206		25,339
Total				$	174,165	$	173,444	$	173,397


	Three Months Ended				Three Months Ended
	September 30, 2024				September 30, 2023
(dollars in thousands, except per share amounts)	Basic		Diluted		Basic		Diluted
Net (loss) income	$	(82,174)	$	(82,174)	$	2,180	$	2,180
Weighted average basic common shares outstanding		66,992,701		66,992,701		56,443,539		56,443,539
Dilutive effect of options, restricted stock and contingent shares issuable				—				6,181
Diluted common shares outstanding				66,992,701				56,449,720
Net (loss) income per share	$	(1.23)	$	(1.23)	$	0.04	$	0.04


			Wealth
(dollars in thousands)	Banking		Management		Other		Total
Three Months Ended September 30, 2024:
Interest income	$	157,156	$	—	$	—	$	157,156
Interest expense		106,317		—		1,720		108,037
Net interest income		50,839		—		(1,720)		49,119
Provision for credit losses		282		—		—		282
Noninterest income		4,598		7,704		(365)		11,937
LHFS LOCOM adjustment		(117,517)		—		—		(117,517)
Noninterest expense
Compensation and benefits		15,688		4,154		167		20,009
Customer service costs		18,954		—		—		18,954
Professional services and marketing costs		3,298		994		803		5,095
Other		15,266		621		280		16,167
(Loss) income before income taxes		(115,568)		1,935		(3,335)		(116,968)
Income tax (benefit) expense		(34,399)		551		(946)		(34,794)
Net (loss) income	$	(81,169)	$	1,384	$	(2,389)	$	(82,174)

Three Months Ended September 30, 2023:
Interest income	$	144,765	$	—	$	—	$	144,765
Interest expense		90,960		—		1,732		92,692
Net interest income		53,805		—		(1,732)		52,073
Provision (reversal) for credit losses		(2,015)		—		—		(2,015)
Noninterest income		4,557		7,522		(381)		11,698
Noninterest expense
Compensation and benefits		15,571		3,835		226		19,632
Customer service costs		24,683		—		—		24,683
Professional services and marketing costs		2,430		853		465		3,748
Other		15,303		574		266		16,143
Income (loss) before income taxes		2,390		2,260		(3,070)		1,580
Income tax (benefit) expense		(409)		659		(850)		(600)
Net income (loss)	$	2,799	$	1,601	$	(2,220)	$	2,180


	Three Months Ended September 30:
	2024						2023
	Average				Average		Average				Average
(dollars in thousands)	Balances		Interest		Yield /Rate		Balances		Interest		Yield /Rate
Interest-earning assets:
Loans, including LHFS	$	10,055,865	$	120,285	4.77	%	$	10,472,309	$	124,363	4.73	%
Securities AFS		1,278,765		17,199	5.38	%		501,625		6,068	4.84	%
Securities HTM		741,873		4,176	2.25	%		805,370		4,532	2.25	%
Cash, FHLB stock, and fed funds		1,127,688		15,496	5.47	%		866,707		9,802	4.49	%
Total interest-earning assets		13,204,191		157,156	4.75	%		12,646,011		144,765	4.56	%
Noninterest-earning assets:
Nonperforming assets		19,726						9,035
Other		251,248						249,021
Total assets	$	13,475,165					$	12,904,067
Interest-bearing liabilities:
Demand deposits	$	2,073,259	$	20,388	3.91	%	$	2,350,353	$	22,240	3.75	%
Money market and savings		3,527,161		35,850	4.04	%		3,136,053		28,275	3.58	%
Certificates of deposit		2,669,097		32,897	4.90	%		2,926,119		34,299	4.65	%
Total interest-bearing deposits		8,269,517		89,135	4.29	%		8,412,525		84,814	4.00	%
Borrowings		1,691,936		17,182	4.04	%		587,205		6,158	4.16	%
Subordinated debt		173,435		1,720	3.94	%		173,372		1,720	3.94	%
Total interest-bearing liabilities		10,134,888		108,037	4.24	%		9,173,102		92,692	4.01	%
Noninterest-bearing liabilities:
Demand deposits		2,124,562						2,676,340
Other liabilities		124,806						138,011
Total liabilities		12,384,256						11,987,453
Shareholders’ equity		1,090,909						916,614
Total liabilities and equity	$	13,475,165					$	12,904,067
Net Interest Income			$	49,119					$	52,073
Net Interest Rate Spread					0.51	%					0.55	%
Net Interest Margin					1.50	%					1.66	%


	Nine Months Ended September 30:
	2024						2023
	Average				Average		Average				Average
(dollars in thousands)	Balances		Interest		Yield /Rate		Balances		Interest		Yield /Rate
Interest-earning assets:
Loans, including LHFS	$	10,084,178	$	358,973	4.75	%	$	10,568,012	$	368,477	4.65	%
Securities AFS		1,160,394		46,187	5.31	%		331,449		10,845	4.36	%
Securities HTM		762,126		12,937	2.26	%		828,952		13,418	2.16	%
FHLB stock, fed funds and deposits		1,012,308		40,426	5.33	%		1,038,722		34,353	4.42	%
Total interest-earning assets		13,019,006		458,523	4.70	%		12,767,135		427,093	4.47	%
Noninterest-earning assets:
Nonperforming assets		17,822						14,341
Other		261,671						402,266
Total assets	$	13,298,499					$	13,183,742
Interest-bearing liabilities:
Demand deposits	$	2,467,225	$	74,328	4.02	%	$	2,384,829	$	60,491	3.39	%
Money market and savings		3,354,460		100,005	3.98	%		3,131,660		75,323	3.22	%
Certificates of deposit		2,746,876		100,682	4.90	%		2,548,552		84,072	4.41	%
Total interest-bearing deposits		8,568,561		275,015	4.29	%		8,065,041		219,886	3.65	%
Borrowings		1,541,682		47,044	4.08	%		1,163,249		42,280	4.86	%
Subordinated debt		173,419		5,130	3.95	%		173,356		5,115	3.94	%
Total interest-bearing liabilities		10,283,662		327,189	4.25	%		9,401,646		267,281	3.80	%
Noninterest-bearing liabilities:
Demand deposits		1,903,046						2,588,053
Other liabilities		131,742						134,791
Total liabilities		12,318,450						12,124,490
Shareholders’ equity		980,049						1,059,252
Total liabilities and equity	$	13,298,499					$	13,183,742
Net Interest Income			$	131,334					$	159,812
Net Interest Rate Spread					0.45	%					0.67	%
Net Interest Margin					1.34	%					1.67	%


	Quarter Ended							Nine Months Ended
	September 30, 2024 vs. 2023						September 30, 2024 vs. 2023
	Increase (Decrease) due to						Increase (Decrease) due to
(dollars in thousands)	Volume		Rate		Total		Volume		Rate		Total
Interest earned on:
Loans, including LHFS	$	(5,112)	$	1,034	$	(4,078)	$	(16,964)	$	7,460	$	(9,504)
Securities AFS		10,382		749		11,131		32,498		2,844		35,342
Securities HTM		(358)		2		(356)		(1,054)		573		(481)
Cash, FHLB stock, and fed funds		3,304		2,390		5,694		(863)		6,936		6,073
Total interest-earning assets		8,216		4,175		12,391		13,617		17,813		31,430
Interest paid on:
Demand deposits		(2,750)		898		(1,852)		2,211		11,626		13,837
Money market and savings		3,771		3,804		7,575		5,978		18,704		24,682
Certificates of deposit		(3,189)		1,787		(1,402)		6,925		9,685		16,610
Borrowings		11,206		(182)		11,024		12,321		(7,557)		4,764
Subordinated debt		—		—		—		7		8		15
Total interest-bearing liabilities		9,038		6,307		15,345		27,442		32,466		59,908
Net interest (expense) income	$	(822)	$	(2,132)	$	(2,954)	$	(13,825)	$	(14,653)	$	(28,478)