The deal sparked concerns about excessive dilution of current shareholders’ ownership. — Reuters
WASHINGTON: First Foundation shares slumped roughly 24% on Wednesday to their lowest since November after the Texas-based lender with a huge portfolio of multi-family real estate loans disclosed a US$228mil “unexpected” capital raise.
The announcement illustrated the struggles of banks with large exposure to commercial real estate (CRE) as the Federal Reserve’s aggressive interest rate hikes and lower occupancies due to a shift in office work patterns trigger default fears.
