Core Points - Sunflower Bank has appointed Ryan Stuart as the Regional President for Dallas, Texas, to lead the growth of its middle market commercial banking business in the region [1][2] - Sunflower Bank is an $8.5 billion bank with a focus on relationship-driven banking services and local decision-making across multiple states [1][5] - Stuart has over 20 years of experience in commercial banking, including leadership roles in middle market and corporate banking [2][3] Company Overview - Sunflower Bank is headquartered in Dallas, Texas, and operates 71 licensed branches across seven states, with mortgage capabilities in 43 states [5] - The bank offers a full range of services including commercial and specialty banking, treasury management, personal banking, mortgage lending, private banking, and wealth management [4][5] Leadership Insights - Ryan Stuart expressed enthusiasm about joining Sunflower Bank, highlighting the bank's commitment to relationship-driven banking and its entrepreneurial spirit [3] - Bo Scott, Chief Banking Officer at Sunflower Bank, emphasized Stuart's experience and connections within the Dallas business community as key assets for the bank's growth [2]

Financial Performance - Net income for Q3 2025 was $23.2 million, an increase from $22.4 million in Q3 2024, with diluted earnings per share rising to $0.82 from $0.79[164] - Adjusted net income (non-GAAP) for the three months ended September 30, 2025, was $23,174 thousand, slightly down from $23,655 thousand in 2024, indicating a decrease of 2.03%[171] - Income before income taxes increased by $9.3 million to $86.1 million for the nine months ended September 30, 2025, compared to $76.7 million for the same period in 2024[173] - Net income for the third quarter of 2025 was $23.2 million, compared to $22.4 million for the same period in 2024[188] - Diluted earnings per share increased to $0.82 for the third quarter of 2025, compared to $0.79 for the same period in 2024[188] Assets and Equity - Total assets as of September 30, 2025, were $8.495 billion, compared to $8.138 billion as of September 30, 2024, reflecting a growth of 4.4%[166] - Total stockholders' equity (GAAP) increased to $1,127,513 thousand as of September 30, 2025, compared to $1,034,085 thousand in 2024, reflecting a growth of 9.05%[170] - The company reported a book value per share of $40.48 as of September 30, 2025, up from $37.38 a year earlier[166] - The total stockholders' equity rose to $1.1 billion at September 30, 2025, up from $1.0 billion at December 31, 2024, reflecting a 10.0% increase[236] Income and Revenue - Net interest income for Q3 2025 was $80.953 million, up from $76.158 million in Q3 2024, indicating a year-over-year increase of 10.5%[166] - Noninterest income accounted for 24.5% of total revenue in Q3 2025, compared to 22.5% in Q3 2024[167] - Revenue from mortgage banking services increased by $5.7 million to $36.9 million for the nine months ended September 30, 2025, compared to $31.2 million for the same period in 2024[176] - Noninterest income for the nine months ended September 30, 2025, rose by $7.0 million to $75.1 million compared to the same period in 2024[223] Loans and Deposits - The loan growth rate was 10.6% annualized, while deposit growth was modest at 0.3% annualized[167] - Total loans held-for-investment increased to $6.7 billion at September 30, 2025, from $6.4 billion at December 31, 2024, reflecting a growth of 4.8%[243] - Total deposits increased by $0.4 billion to $7.1 billion as of September 30, 2025, compared to $6.67 billion at December 31, 2024[257] - Total consumer deposits rose to $3.61 billion, up from $3.39 billion, while total business deposits increased to $3.07 billion from $2.84 billion[257] Credit Losses and Risk Management - The provision for credit losses was $10.1 million in Q3 2025, compared to $5 million in Q3 2024, reflecting increased caution in credit risk management[166] - Provision for credit losses increased by $4.2 million to $10.5 million for the third quarter of 2025, compared to $6.4 million in 2024, reflecting a significant rise of 65.63%[172] - The allowance for credit losses is maintained to absorb expected losses in the loan portfolio, reflecting ongoing evaluations of credit quality and risk[210] - The allowance for credit losses at the end of the period is $84,040,000, representing 1.26% of total loans[252] Efficiency and Cost Management - The efficiency ratio improved to 64.22% in Q3 2025 from 65.83% in Q3 2024, indicating better cost management[168] - Noninterest expenses increased by $4.2 million to $68.9 million for Q3 2025, compared to $64.7 million in Q3 2024, representing a 6.5% increase[228] - Salary and employee benefits rose to $34.5 million for the third quarter of 2025, up from $30.5 million in 2024, marking an increase of 16.39%[172] Interest Rates and Economic Impact - Inflation primarily impacts operations through increasing operating costs and non-interest expenses, with net interest margin being more affected by interest rate changes than general inflation[276] - The interest rate shock simulation shows that a +300 basis point change in interest rates could lead to an 8.6% increase in net interest income for 2025[278] - A +200 basis point change in interest rates would result in a 5.8% increase in net interest income for 2025[278] - A -100 basis point change in interest rates would lead to a 2.5% increase in net interest income for 2025[278]

Group 1 - FirstSun Capital, owner of Sunflower Bank, reported a quarterly earnings miss and announced a merger, leading to a nearly 17% drop in stock price [1][6] - The company reported total revenue of $107.3 million for Q3, an increase from $98.2 million in the same period of 2024, but net income slightly decreased to under $23.2 million, or $0.84 per share, compared to $22.4 million a year ago [2][3] - Analysts had expected revenue of $106.7 million and adjusted profitability of $0.89 per share, indicating a mixed quarter for FirstSun [3] Group 2 - FirstSun announced a merger with First Foundation in an all-stock transaction, where First Foundation shareholders will receive slightly more than 0.16 shares of FirstSun for each share they hold [4] - The total transaction value of the merger is approximately $785 million, with current FirstSun investors expected to own just under 60% of the merged entity, which will retain the FirstSun name [5] - The merger is subject to approval from shareholders and regulatory bodies, with an expected closing in early Q2 of the following year [5]

Merger Announcement - FirstSun Capital Bancorp announced a merger with First Foundation, which was disclosed in a joint press release [2] - The merger discussion will be a key focus during the conference call, alongside the third quarter earnings results [2] Financial Results - FirstSun Capital Bancorp released its third quarter earnings, with additional details expected from First Foundation on October 30 [2] - Both companies will address their financial performance during the call, providing insights into their respective earnings [2]

Financial Data and Key Metrics Changes - The merger between FirstSun Capital and First Foundation was announced, with a focus on leveraging the combined strengths to enhance growth and profitability [2][4] - The pro forma CET1 capital level after closing is projected at a strong 10.5%, with no new capital required as part of the deal [18][33] - The company expects a significant improvement in the net interest margin (NIM) from a recent run rate of approximately 1.60% to nearly 4% by 2027 [19][20] Business Line Data and Key Metrics Changes - First Foundation's wealth management platform, with over $5.3 billion in assets under management, is expected to significantly enhance the fee income profile of the combined organization [15][67] - The merger is anticipated to create a top-tier organization with improved revenue synergies from treasury management and residential mortgage expertise [10][16] Market Data and Key Metrics Changes - The merger will expand FirstSun's geographic footprint into eight of the top 10 largest metropolitan statistical areas (MSAs) in the Central and Western regions of the U.S. [15] - The company aims to grow deposits significantly, targeting over $3 billion in deposit growth opportunities through enhanced branch operations and product offerings [58][62] Company Strategy and Development Direction - The merger is seen as a strategic move to tackle unloved companies in the industry, with a focus on transforming First Foundation's balance sheet and enhancing profitability [5][12] - The company plans to migrate more of First Foundation's balance sheet to its business model, improving the mix of deposits and asset yields [12][19] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the Southern California market, highlighting its strong economic fundamentals and the opportunity to capture middle-market clients who feel neglected by larger banks [65][66] - The management team emphasized a proactive approach to reducing risk and enhancing the credit profile of the combined organization [9][18] Other Important Information - The repositioning plan includes a total downsizing of $3.4 billion, focusing on reducing non-relationship rate-sensitive elements on both sides of the balance sheet [16][80] - The company expects to achieve approximately 35% in cost savings, primarily from personnel reductions and professional services [81][82] Q&A Session Summary Question: Can you walk us through the mechanics of the $3.4 billion repositioning plan and its timing? - The repositioning is expected to be completed around the closing date, with some progress anticipated in Q4 and Q1 based on existing plans [25][26] Question: What are the expectations for capital management strategies in the long term? - The company expects to see CET1 leveling off beyond 2027, with future capital management strategies being employed that have not been historically utilized [33] Question: Can you provide visibility on the EPS accretion assumptions and how they compare to street estimates? - Internal projections indicate significant improvements in net interest income (NII) and expense reductions, with a projected improvement from break-even levels to approximately $28 million pre-loan loss provision by 2026 [40][42] Question: What gives you confidence in the regulatory approval process for this transaction? - Extensive conversations with regulators have been held, and the company has taken lessons from past experiences to ensure a clearer and more robust restructuring plan [46] Question: What are the sources of the expected 35% cost savings? - Approximately 70% of the cost savings are expected to come from personnel reductions, with additional savings from professional services and back-office opportunities [81][82]

Financial Data and Key Metrics Changes - The merger with First Foundation Inc. was announced, which is expected to significantly enhance the company's growth and risk profile [2][4] - The pro forma CET1 capital level after closing is projected at 10.5%, with no new capital required as part of the deal [18] - The company anticipates a significant improvement in net interest margin (NIM) from a recent run rate of 1.60% to nearly 4% by 2027 [19] Business Line Data and Key Metrics Changes - The merger will allow for a dramatic acceleration of the business plan, particularly in Southern California, enhancing the wealth management platform with over $5.3 billion in assets under management [15][16] - The repositioning plan includes downsizing $3.4 billion in total liabilities, focusing on reducing non-relationship rate-sensitive elements [16][19] Market Data and Key Metrics Changes - The company will operate in eight of the top 10 largest metropolitan statistical areas (MSAs) in the Central and Western regions of the U.S. and five of the top 10 fastest-growing markets [15] - The Southern California market is highlighted as having a better lower-cost mix of deposits compared to other regions [11] Company Strategy and Development Direction - The company aims to transform First Foundation's balance sheet to align more closely with its own, focusing on core funding and enhancing fee income [12][19] - The strategy includes leveraging existing teams in Southern California to drive organic growth and improve the overall business mix [60][61] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the merger's ability to reduce risk while enhancing growth opportunities in attractive markets [22] - The management team noted that the current economic environment presents unique opportunities due to disruptions faced by larger banks, particularly in the middle market [65] Other Important Information - The company expects to achieve a 35% cost savings post-merger, primarily through personnel reductions and professional services [80] - The company is focused on improving its credit risk profile and has a detailed plan to address liquidity, interest rate, and credit risks [17][18] Q&A Session Summary Question: Can you walk us through the mechanics of the $3.4 billion repositioning plan? - The repositioning is expected to be completed around the closing date, with some activities already in progress [25][26] Question: What are the expectations for capital management long-term? - The company anticipates a significant amount of capital accretion, providing flexibility for future growth and M&A opportunities [32][33] Question: How do the EPS projections compare to street estimates? - Internal projections indicate a significant improvement in net interest income (NII) and expense reductions, leading to a positive outlook for EPS [40][42] Question: What gives confidence in the regulatory approval of the merger? - Extensive discussions with regulators have been held, and the company has taken lessons from past experiences to ensure a smoother process this time [46][47] Question: What are the sources of the expected cost savings? - Approximately 70% of the cost savings are expected to come from personnel reductions, with additional savings from professional services and back-office efficiencies [80][82]

Financial Data and Key Metrics Changes - The merger between FirstSun Capital and First Foundation is expected to enhance the profitability profile of the combined organization, with a projected return on assets (ROA) of approximately 145 basis points by 2027 [19] - The common equity tier 1 (CET1) capital level post-closing is projected at a strong 10.5%, with no new capital required as part of the deal [18] - The pro forma company is expected to have a regulatory commercial real estate (CRE) concentration ratio of approximately 238%, significantly improved from First Foundation's current levels [18] Business Line Data and Key Metrics Changes - The merger is anticipated to diversify the fee business mix significantly, particularly through the wealth management platform, which has over $5.3 billion in assets under management [14] - The repositioning plan includes a total downsizing of $3.4 billion, focusing on lowering non-relationship rate-sensitive elements on both sides of the balance sheet [16] - The combined organization aims to improve net interest margin (NIM) from a recent run rate of 1.60% to nearly 4% by 2027 [19] Market Data and Key Metrics Changes - The merger will expand FirstSun's geographic footprint into eight of the top 10 largest metropolitan statistical areas (MSAs) in the Central and Western regions of the U.S. [14] - The Southern California market is highlighted as a significant growth opportunity, with expectations for accelerated hiring and growth in this region [9] Company Strategy and Development Direction - The merger is seen as a strategic move to tackle unloved companies in the industry, which tend to have lower projections and higher upside potential [5] - The company plans to migrate more of First Foundation's balance sheet to its business model, enhancing profitability through improved asset yields and fee income [12] - The focus will be on transforming the combined organization quickly, with a clear plan to reduce risk and improve the credit profile [13] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ability to transform First Foundation's operations rapidly, leveraging existing teams in Southern California [9] - The management team emphasized the importance of maintaining a strong focus on organic growth opportunities while managing capital effectively [31] - There is an expectation of continued improvement in net interest income (NII) and fee income, particularly from the wealth management business [39] Other Important Information - The merger is not expected to be a quick process, as it involves significant due diligence and structuring to ensure success for both parties [4] - The company has a detailed plan in place to accomplish the downsizing actions concurrently with the closing of the deal [15] Q&A Session Summary Question: Can you walk us through the mechanics of the $3.4 billion repositioning plan and its timing? - The repositioning is expected to be accomplished around the closing date, with some progress anticipated in Q4 and Q1 based on existing plans [25][26] Question: What are the sources of the expected 35% cost savings? - Approximately 70% of the cost savings are expected to come from personnel reductions, with additional savings from professional services and back-office opportunities [70][72] Question: How does the company plan to manage capital long-term? - The company expects to see CET1 leveling off beyond 2027, with future capital management strategies being employed to support organic growth and M&A opportunities [31][32] Question: What gives the company confidence regarding regulatory approval for the merger? - Extensive conversations with regulators have been held, and the company has taken lessons from past experiences to ensure a clear and structured approach to the merger [42] Question: Can you provide insights on the credit side and expectations for charge-offs going forward? - The company had a $10 million provision expense in Q3, with expectations for charge-offs to be in the low 40s in terms of basis points for 2025 [44][45]

Transaction Overview - FirstSun Capital Bancorp (FSUN) will acquire First Foundation Inc (FFWM) in a 100% stock transaction, with FFWM stockholders receiving 016083 shares of FSUN for each FFWM share[36] - The aggregate deal value is approximately $785 million[36] - The combined entity is projected to have approximately $17 billion in pro forma total assets[20] - The pro forma combined Southwest branch footprint will include 70 existing Sunflower Bank branches and 22 First Foundation branches[22] Financial Highlights - The transaction is expected to result in over 30% EPS accretion by 2027[20] - The combined company is projected to achieve a 2027E Return on Average Tangible Common Equity (ROATCE) of 133% and a Return on Average Assets (ROAA) of 145%[20] - Pro forma tangible common equity to tangible assets (TCE/TA) is projected to be 96%[20] Strategic Rationale - The merger will accelerate FirstSun's expansion strategy in Southern California (SoCal)[19] - A balance sheet re-positioning plan aims to unlock First Foundation's core franchise by reducing risk[23] - The combined company will have a presence in 8 of the top 10 largest MSAs in the Central & Western US[27] Balance Sheet Adjustments - Approximately $34 billion in on-balance sheet downsizing is expected to be completed concurrent with closing[36] - The re-positioning plan includes reducing approximately $856 million of brokered deposits and approximately $11 billion of higher-rate/non-relationship deposits[52]

Core Viewpoint - Halper Sadeh LLC is investigating the fairness of the merger between FirstSun Capital Bancorp and First Foundation Inc. for FirstSun shareholders, who will own 59.5% of the combined entity upon completion of the transaction [1]. Group 1: Investigation Details - The investigation focuses on whether FirstSun and its board violated federal securities laws or breached fiduciary duties by not obtaining the best possible consideration for shareholders and failing to disclose all material information necessary for assessing the merger [3]. - Halper Sadeh LLC may seek increased consideration for shareholders, additional disclosures, and other relief related to the proposed transaction [4]. Group 2: Legal Rights and Contact Information - FirstSun shareholders are encouraged to contact Halper Sadeh LLC to learn about their legal rights and options regarding the merger [2]. - The firm operates on a contingent fee basis, meaning shareholders would not incur out-of-pocket legal fees or expenses [4].

Core Insights - FirstSun Capital reported revenue of $108.51 million for the quarter ended September 2025, reflecting a year-over-year increase of 10.5% [1] - The company's EPS was $0.82, slightly down from $0.84 in the same quarter last year, with an EPS surprise of -8.89% against a consensus estimate of $0.90 [1] - The reported revenue exceeded the Zacks Consensus Estimate of $107.1 million, resulting in a surprise of +1.32% [1] Financial Performance Metrics - Net interest margin (on FTE basis) was 4.1%, matching the two-analyst average estimate [4] - Nonperforming assets totaled $83.06 million, higher than the average estimate of $62.92 million [4] - Nonperforming loans amounted to $69.64 million, exceeding the average estimate of $50.72 million [4] - Net charge-offs were reported at 0.6%, above the average estimate of 0.4% [4] - Average interest-earning assets reached $7.89 billion, slightly above the average estimate of $7.85 billion [4] - Efficiency ratio was 64.2%, compared to the average estimate of 63.4% [4] - FTE net interest income (non-GAAP) was $82.18 million, surpassing the average estimate of $81.6 million [4] - Total noninterest income was $26.33 million, exceeding the average estimate of $25.52 million [4] - Net interest income (GAAP) was reported at $80.95 million, above the average estimate of $80.37 million [4] Stock Performance - Shares of FirstSun Capital returned +1.1% over the past month, while the Zacks S&P 500 composite increased by +2.5% [3] - The stock currently holds a Zacks Rank 2 (Buy), indicating potential for outperformance in the near term [3]