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Apex Trader Funding (ATF) - News

First Foundation Stock Plunges After $228M Fundraise: Regional Bank Has Heavy Commercial Real Estate Exposure

Shares of First Foundation Inc. (NYSE:FFWM), a Texas-based regional bank facing commercial real-estate risks, dropped significantly on Wednesday after it received some badly needed help from a group of investors led by Fortress Investment Group. The stock closed at $6.58 a share on Tuesday but fell 24.7% to $4.95 by mid-day on Wednesday. Fortress, Canyon Partners, Strategic Value Bank Partners, North Reef Capital and other investors agreed to buy $228 million in common and preferred shares at $4.10 each from the Dallas bank, which has about $14 billion in assets, according to the firms, the Wall Street Journal reported. Fortress will invest $115 million in First Foundation as part of the deal, while Canyon Partners will invest $46 million. Strategic Value and North Reef Capital plan to invest $22 million each. Fortress will own 24.9% of the bank after the deal closes, while other investors will own as ...