California-based transplant bank First Foundation makes progress in growing in Texas

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The bank which moved its headquarters from California to Dallas last year reported strong financial results as the business side of the business sees no slowing in inflation.

First Foundation reported revenue of approximately $95 million for the April-June period, representing a 32% increase over the same period last year. It also said it hit record levels of lending, which rose about 57% to $2.2 billion from the same period last year.

“$1.1 billion was the previous high for a quarter,” First Foundation CEO Scott Kavanaugh said. “For a bank with just over $10 billion [in assets]that’s a pretty incredible feat.

The company has eight employees at its new headquarters in The Crescent and 17 total employees in Texas.

Moving the First Foundation’s headquarters from California to Texas has already paid off, Kavanaugh said.

“One of the best decisions I made was to move to Texas and help us break into different geographic markets,” he said. “I think there’s just huge upside potential in the D-FW region.”

In May, First Foundation opened a new branch in Plano on Preston Road that is already exceeding expectations, Kavanaugh said. In addition to the new branch and its executive office in Dallas, it has a loan origination office in Irving.

While other banks have seen their deposit balances fall due to difficult economic conditions, First Foundation has seen total deposits increase by approximately 34% from the same period last year to a total of 9, $5 billion. Kavanaugh said that could be because it is largely commercial banking, a side of banking that has been less affected by inflation than consumer banking.

The company was also boosted by its recent acquisition of Naples, Fla.-based TGR Financial and its banking subsidiary, First Florida Integrity Bank, in late 2021. The Florida bank has seven branches in southwest Florida. . First Florida Integrity’s deposit base helped fund an increase in lending, Kavanaugh said.

After the Florida acquisition and its new locations in Texas, Kavanaugh said the company has seen “tremendous” growth on the lending side in both states. Where nearly all of the lending originated in California, it’s now down to around 70%, he said.

“I think we’re going to see this engine of growth continue, and that bodes well,” Kavanaugh said.

California’s First Foundation Inc. Establishes New Texas Headquarters at Uptown Dallas’ The Crescent
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