UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q __________________________________ ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2025 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission File Number 333-258176 __________________________________ FIRSTSUN CAPITAL BANCORP (Exact name of registrant as specified in its charter) _________________ ...

Financial Data and Key Metrics Changes - The company reported a net income of $26.4 million, translating to earnings per share of $0.93 and a return on assets (ROA) of 1.28% [4] - Deposits increased by 13% annualized, with total revenue growth approximating 10% [4][5] - The net interest margin for the quarter was strong at 4.07%, maintaining above 4% for eleven consecutive quarters [14] Business Line Data and Key Metrics Changes - Service fee revenue performance improved significantly, with a revenue mix increase of over 300 basis points compared to the previous quarter, now representing almost 26% of total revenues [5] - Mortgage banking income surged by $4.2 million, driven by a 43% increase in origination levels compared to the prior quarter [16] - Total new loan fundings reached $484 million in Q2, marking a 21% increase from the previous quarter and a 29% increase year-over-year [12] Market Data and Key Metrics Changes - The company experienced robust deposit growth, particularly in money market and transaction accounts, with noninterest-bearing deposits now representing 24% of the total deposit mix [11] - The loan to deposit ratio improved to 91.6%, up from 94.3% at the end of the previous quarter [13] Company Strategy and Development Direction - The company is focused on delivering value-added solutions and maintaining a balanced mix of service fee business offerings to support long-term sustainable growth [5][6] - There is a strategic emphasis on relationship-based banking to differentiate from competitors and deepen existing client relationships [8] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the resilience of the U.S. economy despite macroeconomic volatility, expecting continued growth in their vibrant Southwestern and Western markets [8][15] - The company anticipates mid-single-digit growth for both loans and deposits for the full year, reflecting a conservative outlook [13][28] Other Important Information - The company reported an elevated level of charge-offs during the quarter, primarily linked to specific credits in the telecom and public finance sectors [7][19] - The allowance for credit loss ratio ended at 1.28%, with expectations for net charge-offs to be in the high 30s to low 40s basis points range for the full year [18][19] Q&A Session Summary Question: Inquiry about charge-offs and specific credits - Management clarified that two specific credits were the primary drivers of the charge-offs, with one credit accounting for about 80% of the total [22][23] Question: Future reserve levels in anticipation of charge-offs - Management indicated that the normalized allowance for credit loss (ACL) is expected to be in the range of the current level, around the 120s [24][25] Question: Deposit growth guidance despite strong first-half performance - Management acknowledged strong deposit growth but maintained a conservative mid-single-digit growth guidance for the second half, citing potential headwinds from timing items [26][28] Question: Insights on deposit mix and pricing leverage - Management noted a favorable mix shift from CDs to money market and transaction products, with limited pricing changes anticipated absent macro rate moves [35][36] Question: Loan growth contributions from newer markets - Management confirmed that newer markets, particularly Southern California, are contributing significantly to loan growth, with strong performance expected to continue [43][44] Question: Capital priorities and potential for M&A - Management emphasized a focus on organic growth while remaining opportunistic regarding M&A opportunities, particularly in the Southwest region [48][62]

Financial Performance - Net income for the second quarter of 2025 was $264 million, with diluted earnings per share of $093[16] - The company's return on average assets (ROAA) was 128%, and the pre-tax pre-provision ROAA (PTPP ROAA) was 182% for Q2 2025[16] - Total revenue for Q2 2025 reached $1056 million, a 97% increase compared to Q1[16] - The net interest margin (NIM) remained strong at 407% for Q2 2025[16] - For the first half of 2025, net income was $500 million, with diluted earnings per share of $177[14] - Total revenue for the first half of 2025 was $2018 million, a 63% increase from the same period in 2024[14] Loan and Deposit Trends - Average loan growth was 107% annualized in Q2 2025[16] - Average deposit growth was 183% annualized in Q2 2025[16] - The loan-to-deposit ratio was 916%[16] - Total deposits as of June 30, 2025, were $71 billion[7] - Total loans as of June 30, 2025, were $65 billion[7] Asset Quality - Net charge-offs to average loans were 083% in Q2 2025[16] - Nonperforming loans (NPLs) trended down 30%[55] Capital and Liquidity - The Common Equity Tier 1 (CET1) ratio was 1378%[14] - The company has $35 billion in immediate borrowing availability[64]

FirstSun Capital Bancorp Reports Second Quarter 2025 Results Second Quarter 2025 Highlights: Denver, Colorado – July 28, 2025 – FirstSun Capital Bancorp ("FirstSun") (NASDAQ: FSUN) reported net income of $26.4 million for the second quarter of 2025 compared to net income of $24.6 million for the second quarter of 2024. Earnings per diluted share were $0.93 for the second quarter of 2025 compared to $0.88 for the second quarter of 2024. Adjusted net income, a non-GAAP financial measure, was $25.2 million or ...

[Part I - Financial Information](index=6&type=section&id=Part%20I%20-%20Financial%20Information%20(Unaudited)) [Financial Statements](index=6&type=section&id=Item%201.%20Financial%20Statements) FirstSun Capital Bancorp's Q1 2025 unaudited financial statements show total assets increased to $8.22 billion and net income rose significantly to $23.6 million, primarily driven by a much lower provision for credit losses [Consolidated Balance Sheets](index=7&type=section&id=Consolidated%20Balance%20Sheets) As of March 31, 2025, total assets reached $8.22 billion, driven by a $104.1 million increase in net loans, while deposits grew by $202.0 million and equity increased to $1.07 billion Consolidated Balance Sheet Highlights (in thousands) | Account | March 31, 2025 | December 31, 2024 | Change | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Total Assets | $8,216,458 | $8,097,387 | $119,071 | 1.5% | | Loans, net | $6,392,218 | $6,288,136 | $104,082 | 1.7% | | Total Deposits | $6,874,239 | $6,672,260 | $201,979 | 3.0% | | Federal Home Loan Bank advances | $35,000 | $135,000 | $(100,000) | -74.1% | | Total Stockholders' Equity | $1,068,295 | $1,041,366 | $26,929 | 2.6% | [Consolidated Statements of Income and Comprehensive Income](index=8&type=section&id=Consolidated%20Statements%20of%20Income%20and%20Comprehensive%20Income) Q1 2025 net income surged to $23.6 million ($0.83 diluted EPS) from $12.3 million in Q1 2024, primarily due to a significantly lower provision for credit losses and a 5.2% rise in net interest income Q1 Performance Summary (in thousands, except per share data) | Metric | Q1 2025 | Q1 2024 | Change (%) | | :--- | :--- | :--- | :--- | | Net Interest Income | $74,478 | $70,806 | 5.2% | | Provision for Credit Losses | $3,800 | $16,500 | -77.0% | | Noninterest Income | $21,729 | $22,808 | -4.7% | | Noninterest Expense | $62,722 | $61,828 | 1.5% | | **Net Income** | **$23,569** | **$12,296** | **91.7%** | | **Diluted EPS** | **$0.83** | **$0.45** | **84.4%** | [Consolidated Statements of Cash Flows](index=10&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) In Q1 2025, net cash from operations was $26.4 million, investing activities used $116.2 million, and financing activities provided $95.3 million, leading to a $5.5 million net increase in cash Cash Flow Summary for Three Months Ended March 31, 2025 (in thousands) | Activity | Amount | | :--- | :--- | | Net Cash from Operating Activities | $26,353 | | Net Cash from Investing Activities | $(116,239) | | Net Cash from Financing Activities | $95,346 | | **Net Increase in Cash** | **$5,460** | [Note 2 - Securities](index=14&type=section&id=Note%202%20-%20Securities) As of March 31, 2025, the securities portfolio totaled $515.5 million, with $48.6 million in unrealized AFS losses primarily due to interest rate changes, not credit impairments Securities Portfolio Summary (March 31, 2025, in thousands) | Category | Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Fair Value | | :--- | :--- | :--- | :--- | :--- | | **Available-for-Sale** | **$528,152** | **$1,030** | **$(48,567)** | **$480,615** | | U.S. treasury | $35,210 | $0 | $(2,869) | $32,341 | | Mortgage backed - commercial | $154,066 | $468 | $(11,643) | $142,891 | | **Held-to-Maturity** | **$34,914** | **$2** | **$(5,035)** | **$29,881** | - The company does not consider the unrealized losses of **$48.6 million** on AFS securities to be credit-related, attributing them to interest rate changes. It does not plan to sell these securities before recovery of their amortized cost[47](index=47&type=chunk) [Note 3 - Loans](index=18&type=section&id=Note%203%20-%20Loans) Total loans increased to $6.48 billion by March 31, 2025, with Commercial & Industrial as the largest segment, while the allowance for credit losses rose to $91.8 million and nonaccrual loans increased to $78.6 million Loan Portfolio Composition (in thousands) | Loan Type | March 31, 2025 | % of Total | | :--- | :--- | :--- | | Commercial and industrial | $2,635,028 | 40.6% | | Commercial real estate | $1,884,381 | 29.1% | | Residential real estate | $1,195,714 | 18.4% | | Public finance | $551,252 | 8.5% | | **Total Loans** | **$6,484,008** | **100.0%** | Allowance for Credit Losses Activity (Q1 2025, in thousands) | Description | Amount | | :--- | :--- | | Beginning Balance (Jan 1, 2025) | $88,221 | | Provision for credit losses | $4,200 | | Charge-offs | $(812) | | Recoveries | $181 | | **Ending Balance (Mar 31, 2025)** | **$91,790** | - Nonaccrual loans increased from **$67.5 million** at year-end 2024 to **$78.6 million** at March 31, 2025, with the largest increase in the Commercial and Industrial portfolio[54](index=54&type=chunk) [Note 4 - Mortgage Servicing Rights (MSRs)](index=27&type=section&id=Note%204%20-%20Mortgage%20Servicing%20Rights) The fair value of Mortgage Servicing Rights (MSRs) was $82.9 million as of March 31, 2025, down from $84.3 million at year-end 2024, primarily due to valuation changes and runoff, despite $2.7 million in new servicing rights MSR Fair Value Activity (Q1 2025, in thousands) | Description | Amount | | :--- | :--- | | Beginning Balance (Jan 1, 2025) | $84,258 | | Additions from transfers | $2,653 | | Change in fair value (inputs/assumptions) | $(1,389) | | Change in fair value (runoff) | $(2,595) | | **Ending Balance (Mar 31, 2025)** | **$82,927** | [Note 6 - Deposits](index=30&type=section&id=Note%206%20-%20Deposits) Total deposits increased to $6.87 billion at March 31, 2025, from $6.67 billion at year-end 2024, with growth in both noninterest-bearing and interest-bearing accounts, primarily savings and money market Deposit Composition (in thousands) | Deposit Type | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Noninterest-bearing | $1,574,736 | $1,541,158 | | Interest-bearing | $5,299,503 | $5,131,102 | | *Savings & money market* | *$2,974,774* | *$2,834,123* | | *Certificates of deposit* | *$1,576,140* | *$1,565,575* | | **Total Deposits** | **$6,874,239** | **$6,672,260** | [Note 11 - Regulatory Capital Matters](index=36&type=section&id=Note%2011%20-%20Regulatory%20Capital%20Matters) As of March 31, 2025, both the Parent Company and the Bank were well-capitalized, with the Parent Company's CET1 ratio at 13.26% and Total risk-based capital ratio at 15.52%, exceeding all minimum requirements Parent Company Capital Ratios (March 31, 2025) | Ratio | Actual | For Capital Adequacy | | :--- | :--- | :--- | | CET1 to risk-weighted assets | 13.26% | 4.50% | | Tier 1 risk-based capital to risk-weighted assets | 13.26% | 6.00% | | Total risk-based capital to risk-weighted assets | 15.52% | 8.00% | | Tier 1 leverage capital to average assets | 12.47% | 4.00% | [Note 13 - Segment Information](index=40&type=section&id=Note%2013%20-%20Segment%20Information) For Q1 2025, the Banking segment's pre-tax income rose to **$29.7 million** due to lower credit loss provisions, while Mortgage Operations saw a decline to **$2.3 million**, and Corporate incurred a **$2.3 million** pre-tax loss Income (Loss) Before Income Taxes by Segment (Q1 2025 vs Q1 2024, in thousands) | Segment | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Banking | $29,661 | $16,089 | | Mortgage Operations | $2,347 | $3,104 | | Corporate | $(2,323) | $(3,907) | | **Total** | **$29,685** | **$15,286** | [Note 14 - Commitments and Contingencies](index=43&type=section&id=Note%2014%20-%20Commitments%20and%20Contingencies) The company has $1.80 billion in unused loan commitments and faces litigation, including a proposed $0.45 million overdraft fee settlement and a $2.1 million check fraud judgment expected to be covered by insurance - As of March 31, 2025, the company had commitments to fund **$1.64 billion** in variable-rate loans and **$160.9 million** in fixed-rate loans[135](index=135&type=chunk) - A proposed settlement has been reached in the overdraft fee litigation, requiring the Bank to fund a **$0.45 million** settlement fund and forgive **$0.07 million** in uncollected fees[140](index=140&type=chunk) [Management's Discussion and Analysis (MD&A)](index=46&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management's discussion highlights strong Q1 2025 performance with net income of **$23.6 million**, improved net interest margin, annualized loan growth of **6.8%**, and deposit growth of **12.3%**, affirming a robust financial condition and capital position [Financial Summary](index=47&type=section&id=Financial%20Summary) FirstSun's Q1 2025 net income reached **$23.6 million** ($0.83 diluted EPS), significantly up from Q1 2024, driven by a lower credit loss provision, alongside annualized loan growth of **6.8%** and deposit growth of **12.3%** Q1 2025 Key Performance Metrics | Metric | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net Income | $23.6 million | $12.3 million | | Diluted EPS | $0.83 | $0.45 | | Net Interest Margin | 4.07% | 4.01% | | Return on Average Assets | 1.20% | 0.65% | | Loan Growth (annualized) | 6.8% | N/A | | Deposit Growth (annualized) | 12.3% | N/A | - The significant increase in net income for Q1 2024 was heavily influenced by a large provision for credit loss of **$10.6 million** (net of tax) on a specific C&I loan in the prior year period[153](index=153&type=chunk) [Results of Operations](index=53&type=section&id=Results%20of%20Operations) Q1 2025 net interest income increased by **5.2%** to **$74.5 million**, driven by lower cost of funds, while the provision for credit losses sharply decreased, and noninterest income slightly declined due to lower mortgage banking income - Net interest income increased by **$3.7 million** YoY, driven by a **$3.3 million** decrease in total interest expense[178](index=178&type=chunk) - The provision for credit losses was **$3.8 million** in Q1 2025, a sharp decrease from **$16.5 million** in Q1 2024, which included a large specific provision[188](index=188&type=chunk) - Income from mortgage banking services decreased by **$0.4 million** to **$9.1 million** in Q1 2025, as lower net sale gains and MSR capitalization changes offset higher servicing income[196](index=196&type=chunk) [Financial Condition](index=59&type=section&id=Financial%20Condition) As of March 31, 2025, total assets were **$8.2 billion**, with the loan portfolio at **$6.5 billion** and Commercial & Industrial loans as the largest segment, while nonperforming assets increased to **$83.5 million** and deposits grew by **$202 million** Loan Portfolio Composition (March 31, 2025) | Loan Type | Amount (in billions) | % of Total | | :--- | :--- | :--- | | Commercial and industrial | $2.64 | 40.6% | | Commercial real estate | $1.88 | 29.1% | | Residential real estate | $1.20 | 18.4% | | **Total Loans** | **$6.48** | **100.0%** | Nonperforming Assets (in thousands) | Metric | March 31, 2025 | Dec 31, 2024 | | :--- | :--- | :--- | | Nonaccrual loans | $78,575 | $67,517 | | Total nonperforming loans | $78,590 | $69,050 | | **Total nonperforming assets** | **$83,504** | **$74,188** | | NPA / Total Assets | 1.02% | 0.92% | - Total deposits increased by **$202 million** in Q1 2025, with growth in both consumer (**$117.7 million**) and business (**$84.2 million**) deposits[225](index=225&type=chunk) [Liquidity and Capital Resources](index=66&type=section&id=Liquidity%20and%20Capital%20Resources) The company maintains a strong liquidity position, with the parent company holding **$105.7 million** in cash and the Bank having **$3.7 billion** in immediate funding availability, while stockholders' equity increased to **$1.1 billion**, ensuring the company remains well-capitalized Immediate Funding Availability (March 31, 2025, in thousands) | Source | Amount | | :--- | :--- | | FHLB borrowings available | $1,472,919 | | Fed Funds lines | $2,054,342 | | Unused lines with other financial institutions | $160,000 | | **Total Immediate Funding** | **$3,687,261** | - At March 31, 2025, the Bank could pay dividends of approximately **$194.1 million** to the parent company without prior regulatory approval[230](index=230&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=69&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company's primary market risk is interest rate risk, managed by ALCO, with simulations showing the balance sheet is positioned to benefit from falling interest rates, projecting a 1.8% NII increase and 2.2% EVE increase with a 100 basis point decline Interest Rate Sensitivity Analysis (As of March 31, 2025) | Rate Change (bps) | % Change in Net Interest Income | % Change in Economic Value of Equity | | :--- | :--- | :--- | | +300 | 5.6% | -7.7% | | +200 | 3.9% | -4.7% | | +100 | 2.0% | -2.0% | | -100 | 1.8% | 2.2% | | -200 | 2.5% | 2.4% | [Controls and Procedures](index=70&type=section&id=Item%204.%20Controls%20and%20Procedures) Management, including the CEO and CFO, concluded that disclosure controls and procedures were effective as of March 31, 2025, with no material changes to internal control over financial reporting during Q1 2025 - The principal executive officer and chief financial officer concluded that disclosure controls and procedures were effective as of March 31, 2025[247](index=247&type=chunk) - No material changes in internal control over financial reporting occurred during the quarter ended March 31, 2025[248](index=248&type=chunk) [Part II - Other Information](index=71&type=section&id=Part%20II%20-%20Other%20Information) [Legal Proceedings](index=71&type=section&id=Item%201.%20Legal%20Proceedings) The company is involved in litigation, including a proposed **$0.45 million** overdraft fee class action settlement and a **$2.1 million** check fraud judgment expected to be covered by insurance, with no material adverse effect anticipated on financials - An unopposed motion was filed to approve a settlement in the overdraft fee litigation, where the Bank would fund a **$0.45 million** class settlement fund and forgive **$0.07 million** in fees[140](index=140&type=chunk) - In the check fraud litigation, a jury awarded the plaintiff approximately **$2.1 million**. The company believes the judgment will be covered by insurance and will not have a material effect on its financial condition[141](index=141&type=chunk) [Other Information](index=71&type=section&id=Item%205.%20Other%20Information) At the Annual Meeting on May 7, 2025, stockholders approved all seven proposals, including the election of three Class II directors, board declassification, elimination of supermajority voting, and ratification of Crowe LLP as independent accountants - Stockholders elected Neal E. Arnold, David W. Levy, and Kevin T. Hammond as Class II directors[252](index=252&type=chunk) - Key governance changes were approved, including the declassification of the board of directors and the elimination of supermajority voting requirements[252](index=252&type=chunk)[253](index=253&type=chunk)

Financial Data and Key Metrics Changes - The company achieved net income of $23.6 million, representing earnings per share of $0.83 and a return on assets (ROA) of 1.2% [5] - Net interest margin remained strong at 4.07%, marking ten consecutive quarters above 4% [14] - Total new loan fundings totaled $399 million in Q1, up 48% from the previous quarter and up 37% year-over-year [11] - Deposits increased by approximately $200 million or 12% annualized [11] Business Line Data and Key Metrics Changes - Loan growth was primarily driven by the commercial and industrial (C&I) portfolio, which saw a 7% annualized increase [10] - Service fee income represented 22.6% of total revenues, with a slight increase over the last quarter [5] - Consumer deposit service revenues decreased by 9% due to lower NSF activity [17] Market Data and Key Metrics Changes - The company noted strong loan growth in high-growth markets, particularly in the C&I sector [10] - The credit quality remained stable, with nonperforming loans as a percentage of total loans increasing to 1.21% [20] - The company experienced a decline in its commercial real estate portfolio, impacting overall loan growth [10] Company Strategy and Development Direction - The company aims to focus on relationship-based banking and is optimistic about growth opportunities in its markets [6][8] - There is a commitment to maintaining a strong capital position and sound credit risk management [9] - The company is open to opportunistic M&A but remains cautious about potential risks in the current market environment [22][66] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the resilience of the U.S. economy, particularly in their operational regions [8] - There is an acknowledgment of macroeconomic uncertainties impacting consumer investment and spending [15] - The company expects mid-single-digit growth for both loans and deposits for the full year [13] Other Important Information - The provision expense for the first quarter was $3.8 million, resulting in an allowance for credit loss ratio of 1.42% [19] - The company anticipates net charge-offs for the full year to be in the high teens to low 20s range in basis points [21] - The tangible book value per share improved to $34.88, with a CET1 ratio of 13.26% [21] Q&A Session Summary Question: What are the drivers behind the lower expense guidance for 2025? - The lower expense guidance is linked to macroeconomic uncertainty and a slowdown in mortgage activity, impacting variable compensation [26][27] Question: How does the current environment impact thoughts around M&A? - The company remains opportunistic regarding M&A but is cautious about taking on risks that could jeopardize shareholder value [28][66] Question: Can you provide insights on loan growth and competition? - Loan growth remains strong, particularly in the C&I space, with competitive pricing and a robust pipeline for Q2 [36][39] Question: What is the outlook for deposit costs and growth in Southern California? - The company expects stable deposit costs but acknowledges competitive pressures; Southern California efforts have seen strong deposit growth [40][43] Question: Can you elaborate on the higher nonaccrual loan mentioned? - The nonaccrual loan was a $13 million credit with cross-border exposure in the manufacturing sector, contributing to the increase in nonperforming loans [70][71]

Financial Data and Key Metrics Changes - The company achieved net income of $23.6 million, representing earnings per share of $0.83 and a return on assets (ROA) of 1.2% [5] - The net interest margin was strong at 4.07%, maintaining above 4% for ten consecutive quarters [14] - Loans increased by 7% and deposits grew by 12% annualized at the end of the quarter [5][11] - The loan to deposit ratio improved to 94.3% from 95.6% at the end of the previous year [12] Business Line Data and Key Metrics Changes - Service fee income represented 22.6% of total revenues, showing slight growth over the last quarter [5] - The C&I portfolio drove loan growth, while the commercial real estate portfolio experienced a decline [10] - Total new loan fundings totaled $399 million, up 48% from the previous quarter and 37% from the same quarter last year [11] Market Data and Key Metrics Changes - The company noted strong growth in savings and money market accounts, with total annualized growth at 20% [12] - The credit quality remained stable, with nonperforming loans as a percentage of total loans increasing to 1.21% [21] Company Strategy and Development Direction - The company is focused on relationship-based banking and aims to deliver positive operating leverage in 2025 and beyond [5][19] - The management believes there is significant growth potential in their markets due to a small market share [10] - The company is considering opportunistic M&A activities, particularly in challenging market conditions [29][66] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the resilience of the U.S. economy, particularly in their operational regions [9] - They acknowledged macroeconomic uncertainties but did not see pervasive issues in their loan portfolio [6][20] - The company expects mid-single-digit growth for both loans and deposits for the full year [13] Other Important Information - The provision expense for the first quarter was $3.8 million, resulting in an allowance for credit loss ratio of 1.42% [20] - The company’s tangible book value per share improved to $34.88, with a CET1 ratio of 13.26% [22] Q&A Session Summary Question: Can you elaborate on the lower expense guidance for 2025? - The lower expense guidance is linked to macroeconomic uncertainty and a slowdown in mortgage activity, impacting variable compensation [27][28] Question: How does the current environment affect M&A thoughts? - The company remains opportunistic regarding M&A, feeling confident in their capital levels and not wanting to risk shareholders with volatile assets [29][30] Question: Can you provide insights on loan growth and competition? - Loan growth remains strong, particularly in the C&I space, with competitive pricing and a robust pipeline [38][41] Question: What is the outlook for deposit costs and growth? - The company expects stable deposit costs but acknowledges competitive pressures; growth is driven by both corporate and consumer sides [42][45] Question: Can you clarify the impact of the MSR write-down on mortgage revenue? - The impact was primarily from the MSR net capitalization due to macro rate changes and CPR, with negligible effects from hedging [54] Question: What is the company's interest rate sensitivity? - The company is slightly asset sensitive but generally neutral regarding interest rate changes [68] Question: Can you provide more details on the nonaccrual loan mentioned? - The nonaccrual loan was a $13 million credit with cross-border exposure in the manufacturing sector, contributing to the increase in nonperforming loans [70][71]

Financial Performance - FirstSun Capital Bancorp reported a net income of $23.6 million and diluted earnings per share of $0.83 for Q1 2025[14] - The company's Return on Average Assets (ROAA) was 1.20%, and the Pre-Tax Pre-Provision Return on Average Assets (PTPP ROAA) was 1.70%[14] - The Net Interest Margin (NIM) remained strong at 4.07%[14] - Service fee income accounted for 22.6% of total revenue[14] Loan and Deposit Trends - Average loan portfolio experienced a decline of 2.6% annualized, excluding loans held for sale[14] - Average deposit growth was 1.0% annualized[14] - The loan-to-deposit ratio stood at 94.3%[14] - Total assets reached $8.2 billion, total deposits amounted to $6.9 billion, and total loans reached $6.5 billion[7] Strategic Focus and Outlook - The company operates in 5 of the top 10 fastest-growing MSAs and has a presence in 7 of the 10 largest MSAs in the Southwest & Western US[7] - For the full year 2025, the company anticipates a mid-single-digit growth rate for both loans and deposits[60] - The company expects the efficiency ratio to be in the mid-60s for the year[60]

FirstSun Capital Bancorp Reports First Quarter 2025 Results First Quarter 2025 Highlights: Denver, Colorado – April 28, 2025 – FirstSun Capital Bancorp ("FirstSun") (NASDAQ: FSUN) reported net income of $23.6 million for the first quarter of 2025 compared to net income of $12.3 million for the first quarter of 2024. Earnings per diluted share were $0.83 for the first quarter of 2025 compared to $0.45 for the first quarter of 2024. Adjusted net income, a non-GAAP financial measure, was $14.6 million or $0.53 ...

Loan Portfolio and Credit Quality - Non-owner occupied commercial real estate loans accounted for 66.7% of the Company's risk-based capital, representing 11.8% of total loans as of December 31, 2024[58] - Owner-occupied commercial real estate loans associated with office space totaled $186.3 million, or 2.9% of total loans as of December 31, 2024[58] - The average FICO score for mortgage loans was 743 in 2024, indicating a focus on quality borrower credit profiles[64] - Consumer loans typically have shorter terms, lower balances, and higher risks of default compared to residential real estate mortgage loans[61] - Commercial real estate loans are often larger and involve greater risks, with adverse developments potentially increasing credit risk[58] - The Company maintains a diversified loan portfolio to manage credit risk, with tailored underwriting criteria for various loan products[73] - The bank's portfolio segments include commercial and industrial loans, residential real estate loans, and public finance loans, among others[478] - Loans that do not share similar risk characteristics are evaluated individually for credit losses based on discounted cash flows or the fair value of collateral[485] - Management estimates the ACL using relevant information, including historical credit loss experience and macroeconomic indicators such as unemployment rates and property values[476] Financial Performance - Net income for 2024 was $75,628 thousand, a decrease of 27.0% compared to $103,533 thousand in 2023[442] - Total interest income rose to $459,540 thousand in 2024, an increase of 11.1% from $413,684 thousand in 2023[442] - Provision for credit losses increased to $27,550 thousand in 2024, up from $18,247 thousand in 2023, reflecting a rise of 51.0%[442] - Total deposits grew to $6,672,260 thousand in 2024, compared to $6,374,103 thousand in 2023, marking an increase of 4.67%[441] - Noninterest income increased to $89,792 thousand in 2024, up from $79,092 thousand in 2023, a growth of 13.5%[442] - Basic earnings per share decreased to $2.76 in 2024 from $4.15 in 2023, a decline of 33.5%[442] - Total stockholders' equity rose to $1,041,366 thousand in 2024, compared to $877,197 thousand in 2023, an increase of 18.7%[441] - Interest expense on deposits increased significantly to $150,651 thousand in 2024, up from $101,355 thousand in 2023, a rise of 48.5%[442] Regulatory Compliance and Risk Management - The Dodd-Frank Act continues to impact financial institutions, mandating new regulations that could materially affect business operations[93] - The bank holding company is required to maintain a common equity Tier 1 (CET1) risk-based capital ratio of 4.5%[120] - The total risk-based capital ratio must be at least 8% to meet regulatory requirements[120] - The leverage ratio is mandated to be a minimum of 4%[120] - A capital conservation buffer of 2.5% is required under Basel III, bringing the effective CET1 capital ratio to 7.0%[121] - The bank must maintain a Tier 1 risk-based capital ratio of 6% and a total risk-based capital ratio of 10.5% to avoid restrictions on capital distributions[121] - The bank holding company must guarantee compliance of any undercapitalized subsidiary up to 5% of the institution's total assets[112] - The Federal Reserve can require a bank holding company to divest subsidiaries if deemed necessary for financial stability[109] - The bank is subject to comprehensive capital adequacy requirements under Basel III, which apply to all state and national banks regardless of size[119] Employee Engagement and Compensation - The total number of employees as of December 31, 2024, was 1,142, with 1,127 being full-time equivalent employees[81] - The company offers a competitive compensation and benefits package, including a 401(k) plan with employer matching contributions, healthcare benefits, and tuition reimbursement[82] - Employee engagement surveys are conducted to identify strengths and areas for improvement, ensuring continued satisfaction and retention of employees[85] Strategic Initiatives and Market Position - The Company aims to grow its commercial and industrial loan portfolio, emphasizing tailored programs to meet client needs[54] - The terminated merger with HomeStreet was agreed upon on November 18, 2024, indicating a strategic shift in the company's growth plans[453] - The company has fully transitioned from the use of LIBOR on all contracts as of December 31, 2024, following the FASB's standards associated with the cessation of LIBOR[496] Cash Flow and Asset Management - Cash flows from operating activities decreased to $101,120,000 in 2024 from $125,176,000 in 2023, representing a decline of 19.2%[450] - Net cash provided by operating activities for 2024 was $101,120,000, down from $125,176,000 in 2023, a decline of 19%[447] - The net change in deposits was $298,497,000 in 2024, compared to $610,007,000 in 2023, indicating a decrease of 51.0%[450] - Proceeds from Federal Home Loan Bank advances increased significantly to $5,460,410,000 in 2024 from $2,041,468,000 in 2023, a rise of 167.5%[450] - Cash and cash equivalents at the end of the period increased to $615,917,000 in 2024 from $479,362,000 in 2023, a growth of 28.5%[450] Compliance and Legal Obligations - The company must file suspicious activity reports if it finds any relationships or transactions with persons on lists of suspected terrorists[148] - The Office of Foreign Assets Control (OFAC) mandates that banks must freeze or block transactions involving names on its lists[150] - The company is subject to enhanced due diligence requirements for managing private bank accounts for non-U.S. persons[149] - The bank must maintain a designated compliance officer and conduct ongoing employee training programs as part of its anti-money laundering program[144] - The company recognizes interest and/or penalties related to income tax matters in income tax expense, with no examinations by taxing authorities for years before 2021[506]