Key Takeaways EV-to-EBITDA offers a fuller view of valuation by accounting for debt, unlike traditional P/E ratios.MGA, PCG, PAX, PAGS and FSUN are screened as bargain stocks with low EV-to-EBITDA ratios.Each stock meets strict criteria, including valuation, trading volume, price, growth, and Value Score.Investors are typically fixated on the price-to-earnings (P/E) strategy, while seeking attractively priced stocks. Simple and easy to compute, it remains the most widely used valuation metric in the investm ...

Loan Portfolio and Risk Management - The company aims to grow its commercial and industrial loan portfolio, which includes specialty lending verticals such as structured finance products and asset-based lending [57]. - As of December 31, 2025, non-owner occupied commercial real estate loans accounted for 11.1% of total loans, with owner-occupied loans associated with office space totaling $215.5 million [62]. - The average FICO score for mortgage loans originated in 2025 was 743, indicating a focus on quality borrowers [69]. - The company participates in the SBA 7(a) program, with the SBA currently guaranteeing 90% of qualifying loans, which will decrease to 75%-85% after the Consolidated Appropriations Act, 2021 [59]. - The company has established tailored underwriting criteria and credit management processes for various loan product types to control credit risk [79]. - Ongoing credit risk management includes regular loan reviews and prompt charge-offs to maintain adequate allowance levels for probable credit losses [81]. - The company emphasizes diversification in its loan portfolio to mitigate concentration risk across borrower types and geographic areas [84]. Employee Engagement and Compensation - The total number of employees as of December 31, 2025, was 1,186, with 1,177 being full-time equivalent employees [88]. - Sunflower Bank offers a competitive compensation and benefits package, including a 401(k) plan with employer matching contributions, healthcare benefits, and tuition reimbursement [89]. - The company conducts annual reviews of its benefit and compensation programs to ensure competitiveness in the market [90]. - Sunflower Bank has internal programs for emerging managers and leaders to promote career advancement from within [91]. - Employee engagement surveys are utilized to identify strengths and areas for improvement, aiming to enhance employee satisfaction and retention [92]. Regulatory Environment - FirstSun qualifies as an "emerging growth company," allowing it to take advantage of reduced reporting requirements [94]. - The company expects to cease qualifying as an emerging growth company beginning with its Annual Report for the year ended December 31, 2026 [96]. - FirstSun is subject to extensive banking regulations, which may impact its operations and financial condition [98]. - The Dodd-Frank Act continues to influence FirstSun's operations, including exemptions from certain reporting requirements and reduced disclosure obligations [102]. - The Federal Reserve imposes capital requirements on bank holding companies, including a minimum leverage ratio and a minimum ratio of qualifying capital to risk-weighted assets [120]. - Under Basel III, the effective minimum capital ratios are: CET1 capital ratio of 7.0%, Tier 1 risk-based capital ratio of 8.5%, and total risk-based capital ratio of 10.5% [128]. - As of December 31, 2025, the bank maintained capital ratios that exceeded the minimum ratios established for a "well capitalized" institution [136]. - The bank is required to maintain a capital conservation buffer of 2.5% to avoid restrictions on capital distributions or discretionary bonus payments [128]. - The bank's capital categories are determined for applying prompt corrective action rules, which could lead to various enforcement remedies if capital guidelines are not met [133]. - The bank is subject to comprehensive capital adequacy requirements under Basel III, which impose minimum capital requirements for all banks regardless of size [126]. - The OCC has the authority to approve or disapprove mergers and branch establishments, ensuring compliance with capital adequacy guidelines [124]. - The bank received a "Satisfactory" assessment rating from the OCC in its most recent examination regarding fair lending and community reinvestment [141]. - The bank must seek regulatory approval prior to any redemption that would reduce its consolidated net worth by 10% or more [122]. - The bank is prohibited from paying dividends if it would result in becoming undercapitalized, as per FDIC regulations [140]. Compliance and Consumer Protection - The federal banking agencies issued a final rule on October 24, 2023, to amend CRA regulations, significantly expanding evaluation areas and data collection requirements, with an expected effective date of April 1, 2024 [144]. - The implementation of the October 2023 final rule is currently subject to an injunction, and a proposal to rescind it was issued in July 2025, reverting to the previous CRA framework [144]. - The CFPB has broad authority to regulate consumer financial products and services, supervising institutions with over $10 billion in assets for compliance with federal consumer laws [148]. - The CFPB's rules require banks to implement a "reasonable ability-to-repay" test and new disclosures for mortgage origination and servicing, impacting compliance requirements [151]. - The USA PATRIOT Act enhances anti-money laundering obligations, requiring financial institutions to maintain comprehensive programs and conduct due diligence on customer relationships [154]. - The Corporate Transparency Act mandates reporting of beneficial ownership information to FinCEN, although its implementation has faced legal challenges and modifications [159]. - Following Russia's invasion of Ukraine, extensive sanctions were imposed targeting Russian financial institutions, with increased vigilance required for sanctions evasion [162]. - The National Defense Authorization Act for Fiscal Year 2025 reflects ongoing congressional focus on BSA/AML and national security priorities, emphasizing inter-agency coordination [160]. - The DOJ and CFPB have coordinated investigations to strengthen enforcement of fair lending laws, with potential penalties for violations impacting regulatory compliance [146]. - The CFPB's evolving guidance on consumer protection laws may affect the operational strategies of financial institutions, particularly regarding fees and data collection [151]. Market and Interest Rate Risk - Interest rate risk is the primary market risk affecting net interest income, with sensitivity analysis used to assess potential impacts [450]. - A simulation model analyzes the sensitivity of net interest income to interest rate changes, holding current balance sheet values constant [452]. - A 300 basis point increase in interest rates could lead to a 10.1% increase in net interest income for 2025 [456]. Security and Incident Reporting - The company must notify regulators within 36 hours of a significant computer-security incident [166]. - The CFPB's final rule requires institutions to provide consumers access to certain financial data upon request, though enforcement is currently blocked [167]. - The company is subject to ongoing scrutiny regarding sanctions oversight and compliance with BSA/AML regulations [164].

Group 1 - FirstSun Capital Bancorp held a virtual special meeting to vote on proposals related to its merger with First Foundation Inc., including the adoption of the merger agreement and amendments to its certificate of incorporation [2][6] - The meeting was presided over by Executive Chairman Mollie Carter, with significant attendance from the board of directors and other key personnel [3] - A quorum was established with over 89% of shares represented, allowing the voting process to proceed [4][6] Group 2 - The voting procedures were outlined, allowing stockholders to vote online during the meeting using a control number from proxy materials [5] - Stockholders approved the merger agreement, which involves First Foundation merging into FirstSun and the issuance of common stock as merger consideration [6] - Charter amendments were also approved to increase FirstSun's authorized common shares and create a class of non-voting common stock for certain First Foundation stockholders [6]

Summary of FirstSun Capital Bancorp's Extraordinary General Meeting Company Overview - **Company**: FirstSun Capital Bancorp (NasdaqGS: FSUN) - **Meeting Date**: February 27, 2026 - **Type of Meeting**: Extraordinary General Meeting of Stockholders Key Proposals and Votes 1. **FirstSun Merger Proposal** - Proposal to adopt the Agreement and Plan of Merger with First Foundation Inc. - The board recommends a vote in favor of this proposal. - **Outcome**: Approved [12] 2. **FirstSun Authorized Common Increase Proposal** - Proposal to amend the certificate of incorporation to increase the number of authorized shares of FirstSun common stock. - The board recommends a vote in favor of this proposal. - **Outcome**: Approved [12] 3. **FirstSun Non-Voting Common Stock Proposal** - Proposal to create a class of non-voting common stock for issuance to certain First Foundation stockholders in connection with the merger. - The board recommends a vote in favor of this proposal. - **Outcome**: Approved [12] 4. **Adjournment Proposal** - Proposal to adjourn the meeting if necessary to permit further solicitation of proxies for the above proposals. - The board recommends a vote in favor of this proposal, but it became moot as the previous proposals were approved. - **Outcome**: Withdrawn [12] Meeting Procedures and Attendance - **Quorum**: More than 89% of FirstSun's issued and outstanding shares entitled to vote were present, either virtually or by proxy, confirming a quorum [5]. - **Voting Process**: Online voting was open until the polls were closed after the proposals were presented [6][11]. - **Inspector of Election**: Laura Cisneros was appointed to oversee the voting process and certify the results [5]. Additional Information - **Record Date**: January 9, 2026, was set as the record date for determining stockholders entitled to vote [4]. - **Proxy Materials**: Joint proxy statement and notice of the special meeting were mailed starting January 15, 2026 [4]. - **Final Results Filing**: The final voting results will be filed on a Form 8-K with the SEC [13]. Conclusion - The meeting concluded with all key proposals being approved, indicating a positive direction for FirstSun Capital Bancorp and its merger with First Foundation Inc. The leadership expressed appreciation to stockholders for their participation [13].

Financial Data and Key Metrics Changes - The company achieved adjusted net income of $26.9 million for the fourth quarter, with adjusted diluted EPS of $0.95 and an adjusted ROA of 1.27% [5] - Revenue growth was up 10.8% annualized over the previous quarter, with a net interest margin of 4.18%, marking a strong performance [5][12] - For the full year, net interest income grew by 7%, and the adjusted efficiency ratio for the fourth quarter was 63.36% [13][15] Business Line Data and Key Metrics Changes - Average loan growth was 8.5% annualized, with new loan fundings totaling approximately $350 million, up 30% from the previous year [9][10] - Non-interest income accounted for 24.3% of total revenue, with service fee revenue totaling $26.7 million, up almost 24% year-over-year [5][14] - Total deposits increased by over $400 million, or approximately 6.5%, with strong growth in money market and non-interest-bearing accounts [11] Market Data and Key Metrics Changes - The company operates in 7 of the 10 fastest-growing MSAs in the Southwest, indicating strong market positioning for future growth [8] - The loan-to-deposit ratio improved slightly to approximately 93.9% by year-end [11] Company Strategy and Development Direction - The company plans to continue investing in growth markets and expanding its portfolio of products and services to support a relationship-based banking model [7] - There is a focus on maintaining a healthy revenue mix and generating operating leverage, with expectations for mid-single digit growth in net interest income for 2026 [12][13] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's performance and emphasized the importance of monitoring credit conditions, particularly in the C&I loan portfolio [7][16] - The pending merger with First Foundation is seen as a positive step, with integration planning progressing well [8][39] Other Important Information - The company reported a provision expense of $6.2 million for the fourth quarter, with an ending allowance for credit losses at 1.27% of loans [16][17] - The tangible book value per share improved by $3.89, or roughly 11.5%, over the previous year [17] Q&A Session Summary Question: Insights on deposit pricing strategy and betas - Management noted a favorable decrease in interest-bearing costs by about 21 basis points and acknowledged the competitive environment for deposit pricing [22][23] Question: Commentary on expenses and investments in the West Coast - Management indicated plans to add to the sales force in Texas and Southern California, with infrastructure needs considered in synergy disclosures [24][26] Question: Drivers behind the increase in special mentions - The increase was attributed to macro interest rate pressures, with no pervasive themes identified [27][29] Question: Loan pricing and competition - Credit spreads have remained stable, with no material changes noted in trends across the franchise footprint [36][37] Question: Impact of interest rate cuts on the pending acquisition - Management remains optimistic about the merger's prospects and does not foresee any changes in expectations due to recent rate cuts [38][39] Question: Trajectory of net interest margin - Management expects net interest margin to remain stable, with some tightening in deposit pricing anticipated [44][45] Question: Opportunities in Texas and Southern California - Management highlighted increased opportunities in Texas due to M&A activity and emphasized the robust deposit potential in Southern California [46][49]

Financial Data and Key Metrics Changes - Adjusted net income for Q4 was $26.9 million, with adjusted diluted EPS of $0.95 and adjusted ROA of 1.27% [5] - Revenue growth was up 10.8% annualized over the previous quarter, with a net interest margin of 4.18%, marking the 13th consecutive quarter above 4% [5][12] - Total deposits increased by over $400 million, or approximately 6.5%, for the full year, with a loan-to-deposit ratio of approximately 93.9% [11][12] Business Line Data and Key Metrics Changes - Average loan growth was 8.5% annualized, with new loan fundings totaling approximately $350 million in Q4, up 30% from the previous year [9][10] - Non-interest income accounted for 24.3% of total revenue, with service fee revenue for Q4 totaling $26.7 million, up almost 24% year-over-year [5][14] - Adjusted non-interest expense in Q4 was up approximately $1 million from Q3, with an adjusted efficiency ratio of 63.36% [15] Market Data and Key Metrics Changes - The company operates in 7 of the 10 fastest-growing MSAs in the Southwest, indicating strong growth potential across all markets [8] - The company noted a decline in consumer CD balances, while money market accounts showed growth [11] Company Strategy and Development Direction - The company plans to continue investing in growth markets and expanding its portfolio of products and services to support a relationship-based banking model [7] - The pending merger with First Foundation is expected to enhance integration planning and balance sheet optimization [8][9] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's performance and emphasized a focus on driving healthy returns for shareholders despite some credit challenges [7] - The company expects mid-single digit growth in net interest income for 2026, with stable net interest margins [13] Other Important Information - The company reported a provision expense of $6.2 million for Q4, with an ending allowance for credit losses as a percentage of loans at 1.27% [16] - The tangible book value per share improved by $3.89, or roughly 11.5%, over the previous year [17] Q&A Session Summary Question: Insights on deposit costs and pricing strategy - Management noted a decrease in interest-bearing costs by about 21 basis points and acknowledged the competitive environment for deposit pricing [22][23] Question: Commentary on expenses and investments in the West Coast - Management indicated plans to add to the sales force in Texas and Southern California, with infrastructure needs considered in synergy disclosures [24][26] Question: Drivers behind the increase in special mentions - Management attributed the increase to macro interest rate pressures, with no pervasive themes in the increase [27][29] Question: Loan pricing and competition - Management reported that credit spreads have been holding steady, with no material changes in trends [36][37] Question: Impact of interest rate cuts on the pending acquisition - Management remains optimistic about the merger's prospects and does not foresee any changes in expectations due to recent rate cuts [39][40] Question: Trajectory of net interest margin - Management expects net interest margin to remain stable, with some tightening in deposit pricing anticipated [44][45] Question: Opportunities in Texas and Southern California - Management highlighted increased opportunities in Texas due to M&A activity and emphasized the robust deposit opportunity in Southern California [46][49]

Financial Data and Key Metrics Changes - Adjusted net income for Q4 2025 was $26.9 million, with adjusted diluted EPS of $0.95 and adjusted ROA of 1.27% [5] - Revenue growth was up 10.8% annualized over the previous quarter, with a net interest margin of 4.18%, marking a strong performance [5][12] - Total deposits increased by over $400 million, or approximately 6.5%, for the full year, with a loan-to-deposit ratio of approximately 93.9% [11][17] Business Line Data and Key Metrics Changes - Average loan growth was 8.5% annualized, with new loan fundings totaling approximately $350 million in Q4, up 30% from the previous year [9][10] - Non-interest income accounted for 24.3% of total revenue, with service fee revenue totaling $26.7 million, up almost 24% year-over-year [5][14] - Adjusted non-interest expense in Q4 was up approximately $1 million from the previous quarter, with an adjusted efficiency ratio of 63.36% [15] Market Data and Key Metrics Changes - The company operates in 7 of the 10 fastest-growing MSAs in the Southwest, indicating strong growth potential across all markets [7] - The company plans to continue investing in growth markets and expanding its portfolio of products and services [6] Company Strategy and Development Direction - The company emphasizes relationship-based banking and aims to generate operating leverage while maintaining a healthy revenue mix [5][6] - There is a focus on reinvesting in the franchise and adding to the C&I teams in higher growth markets [10][12] - The pending merger with First Foundation is expected to enhance growth opportunities and operational synergies [8][35] Management's Comments on Operating Environment and Future Outlook - Management remains optimistic about the company's performance and growth potential, despite some credit challenges in specific sectors [6][16] - The company expects mid-single digit growth in net interest income for 2026, with stable net interest margins [13][41] - Management acknowledges competitive pressures in deposit pricing but believes they can maintain margins through relationship management [39][47] Other Important Information - The company reported a provision expense of $6.2 million for Q4, with an allowance for credit losses at 1.27% of loans [16] - The tangible book value per share improved by $3.89, or roughly 11.5%, over the previous year [17] Q&A Session Summary Question: Insights on deposit costs and pricing strategy - Management noted a decrease in interest-bearing costs by about 21 basis points and plans to remain flexible in deposit pricing [19][20] Question: Commentary on loan pricing and competition - Credit spreads have held steady, with no significant changes in trends across markets [33] Question: Impact of interest rate changes on the pending acquisition - Management remains optimistic about the merger's prospects and does not foresee any significant changes in expectations due to recent rate cuts [35][36] Question: Trajectory of net interest margin - Management expects net interest margin to remain stable, with some competitive pressures on deposit pricing [39][41] Question: Opportunities in Texas and Southern California - Management sees increased opportunities in Texas due to M&A activity and plans to continue building teams in both regions [43][49]

FirstSun Capital Bancorp NASDAQ: FSUN 4Q2025 Earnings Presentation January 26, 2026 Disclaimers Forward Looking Statements This presentation contains forward-looking information and statements by FirstSun Capital Bancorp (the "Company") within the meaning of the Private Securities Litigation Reform Act of 1995. Forward- looking statements are generally identifiable by the use of words such as "believe", "expect", "anticipate", "plan", "project", "intend", "estimate", "may", "will", "would", "could", "should ...

Core Viewpoint - FirstSun Capital Bancorp (FSUN) reported positive earnings performance for Q4 2025, with earnings per share (EPS) exceeding estimates, indicating improved profitability and financial health [2][5]. Financial Performance - FSUN's EPS for Q4 2025 was $0.87, slightly above the estimated $0.86 [2][5]. - The company's net income for Q4 2025 was $24.8 million, up from $16.4 million in Q4 2024, reflecting a significant increase in profitability [2][5]. - Adjusted net income for Q4 2025 was $26.9 million, or $0.95 per diluted share, compared to $24.3 million, or $0.86, in 2024, indicating strong underlying performance [2]. Financial Ratios - The price-to-earnings (P/E) ratio is approximately 11.73, suggesting investors are willing to pay $11.73 for every dollar of earnings [3]. - The price-to-sales ratio is about 1.91, indicating the company's market value relative to its sales [3]. - The enterprise value to sales ratio is approximately 0.87, reflecting the company's total value compared to its sales [3]. Debt and Liquidity - The debt-to-equity ratio is approximately 0.076, indicating a low level of debt compared to equity, which is generally favorable [4]. - The current ratio is around 0.098, suggesting potential liquidity challenges in meeting short-term obligations [4]. - FSUN's earnings yield of about 8.52% represents a solid return on investment for shareholders [4].

Core Insights - FirstSun Capital (FSUN) reported a revenue of $111.36 million for the quarter ended December 2025, reflecting a year-over-year increase of 12.9% [1] - The earnings per share (EPS) for the quarter was $0.95, up from $0.86 in the same quarter last year, indicating an EPS surprise of +11.11% compared to the consensus estimate of $0.86 [1] - The reported revenue exceeded the Zacks Consensus Estimate of $108.2 million, resulting in a revenue surprise of +2.92% [1] Financial Performance Metrics - Net interest margin (on a fully taxable equivalent basis) was reported at 4.2%, slightly above the average estimate of 4.1% from two analysts [4] - Nonperforming assets totaled $72.29 million, lower than the average estimate of $77.76 million [4] - Nonperforming loans were reported at $60.77 million, compared to the average estimate of $64.62 million [4] - Net charge-offs remained at 0.3%, matching the average estimate from two analysts [4] - Average interest-earning assets were $7.92 billion, slightly below the average estimate of $7.94 billion [4] - The efficiency ratio was reported at 65.4%, higher than the estimated 64% [4] - FTE net interest income (non-GAAP) was $84.62 million, exceeding the average estimate of $82.53 million [4] - Total noninterest income was $26.74 million, above the estimated $25.7 million [4] - Net interest income (GAAP) was reported at $83.46 million, surpassing the average estimate of $81.31 million [4] Stock Performance - Over the past month, shares of FirstSun Capital have returned -1.5%, while the Zacks S&P 500 composite has seen a change of +0.2% [3] - The stock currently holds a Zacks Rank 3 (Hold), suggesting it may perform in line with the broader market in the near term [3]