First Foundation reveals $215m goodwill charge
End-of-year impairment evaluation pushed forward to Q2 amid changing macroeconomic conditions
First Foundation incurred a pre-tax goodwill impairment charge of $215.3 million in the second quarter of the year, resulting in a 360% increase in its non-interest expense.
The Dallas-based institution attributed the charge to a “drastic change in macroeconomic conditions” and a series of interest rate hikes from the Federal Reserve, all of which negatively impacted its market valuation.
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