08:14 AM EDT, 10/03/2024 (MT Newswires) -- First Foundation ( FFWM ) said Thursday it has reclassified $1.9 billion worth of multifamily loans from "held to maturity" to "held for sale."

The financial company said the move will result in a write-down to fair value that will "meaningfully" impact Q3 earnings, but will provide flexibility for securitization or sale of the loans and help maximize pricing.

First Foundation ( FFWM ) also said that all outstanding shares of its Series B Noncumulative Convertible Preferred Stock issued as part of its recent capital raise automatically converted into about 14.49 million shares of common stock on Oct. 2.