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.