Financial Performance - Net income for Q4 2024 was $16.4 million, or $0.58 per diluted share, down from $24.0 million, or $0.94 per diluted share in Q4 2023[1][4] - Adjusted net income for Q4 2024 was $24.3 million, or $0.86 per diluted share[1][6] - Full year 2024 net income was $75.6 million, or $2.69 per diluted share, down from $103.5 million, or $4.08 per diluted share in 2023[1][21] - Net income decreased to $75,628,000 in 2024 from $103,533,000 in 2023, a decline of 27.0%[50] - Diluted earnings per share fell to $2.69 in 2024, down from $4.08 in 2023, representing a decrease of 34.2%[50] - Diluted earnings per share (GAAP) for Q4 2024 was $0.58, down from $0.94 in Q4 2023, indicating a decline of 38.3%[71] - Adjusted diluted earnings per share (non-GAAP) for Q4 2024 was $0.86, compared to $0.53 in Q4 2023, marking a 62.3% increase[71] Revenue and Income Sources - Total revenue for 2024 was $386.7 million, with net interest income of $296.9 million and noninterest income of $89.8 million[1][27] - Noninterest income totaled $21.6 million in Q4 2024, a decrease of $0.4 million from the prior quarter, with mortgage banking income increasing by $0.8 million[1][12] - Noninterest income increased to $89,792,000 in 2024, up from $79,092,000 in 2023, reflecting a growth of 13.5%[50] - Treasury management service fees increased by $3.1 million in 2024, contributing to noninterest income as a percentage of total revenue rising to 23.2% from 21.2% in 2023[29] Expenses and Efficiency - Noninterest expense totaled $264.0 million in 2024, an increase of $41.2 million from 2023, primarily due to a $21.8 million rise in salaries and benefits[29][30] - The efficiency ratio for 2024 was 68.28%, up from 59.81% in 2023, while the adjusted efficiency ratio was 64.13% compared to 59.81% in 2023[31] - The efficiency ratio for Q4 2024 was 74.66%, compared to 65.83% for the prior quarter[1][15] - Adjusted total noninterest expense for Q4 2024 is $62,793,000, compared to $52,308,000 in Q4 2023[73] Asset and Deposit Growth - Average deposits increased by $48.7 million in Q4 2024, or 3.0% on an annualized basis, totaling $6.6 billion[1][18] - Average deposits rose to $6.5 billion for the year ending December 31, 2024, an increase of $354.9 million or 5.8% from 2023[34] - Total deposits increased to $6,672,260 as of December 31, 2024, from $6,374,103 a year prior, marking a growth of 4.68%[54] - Total consolidated assets were reported at $8.1 billion as of December 31, 2024[40] - Total assets increased to $8,097,387,000 in 2024, up from $7,879,724,000 in 2023, a growth of 2.8%[50] Credit Quality and Losses - The provision for credit losses was $4.9 million in Q4 2024, influenced by macroeconomic factors and specific customer relationship deterioration[1][9] - Provision for credit losses rose significantly to $27,550,000 in 2024, compared to $18,247,000 in 2023, indicating an increase of 51.3%[50] - The allowance for credit losses as a percentage of total loans was 1.38% at December 31, 2024, an increase from 1.28% at December 31, 2023[1][26] - Nonperforming loans, including nonaccrual loans, rose to $69,050 thousand as of December 31, 2024, up from $65,824 thousand on September 30, 2024, indicating a 3.7% increase[69] Capital Ratios and Book Value - The common equity tier 1 risk-based capital ratio was 13.18% as of December 31, 2024, indicating strong capital ratios above "well-capitalized" thresholds[35] - Book value per share increased to $37.58 at December 31, 2024, up by $2.44 from the previous year[35] - Tangible book value per share (non-GAAP) increased to $33.94 as of December 31, 2024, from $30.96 a year earlier, representing a 9.6% increase[71] - Total stockholders' equity (GAAP) increased to $1,041,366 thousand as of December 31, 2024, up from $877,197 thousand a year earlier, representing an 18.7% year-over-year growth[71] Future Outlook and Strategy - The company plans to expand into the San Diego and Los Angeles markets, indicating future growth strategies[43]

Financial Performance - Net income for Q3 2024 was $22.4 million, or $0.79 per diluted share, down from $25.2 million, or $1.00 per diluted share in Q3 2023[218]. - Total revenue for the nine months ended September 30, 2024, was impacted by a $10.6 million provision for credit loss, resulting in net income of $59.3 million, or $2.12 per diluted share[218]. - Net income for the three months ended September 30, 2024, was $22,422 thousand, a decrease from $25,232 thousand in the same period of 2023, indicating a decline of 11.4%[220]. - Net income (GAAP) for the three months ended September 30, 2024, was $22,422 thousand, down from $25,232 thousand in the same period last year[223]. - Noninterest income rose to $22,075,000 for Q3 2024, an increase of $3,425,000 from $18,650,000 in Q3 2023, marking a growth of approximately 18.4%[274]. Asset and Loan Growth - Total assets increased to $8,138,487 thousand as of September 30, 2024, up from $7,756,875 thousand in the previous year, representing a growth of 4.9%[220]. - Total loans, excluding loans held-for-sale, reached $6,443,756 thousand as of September 30, 2024, compared to $6,179,522 thousand a year earlier, marking an increase of 4.3%[220]. - Total deposits increased to $5,010,117 thousand in 2024, with a total interest expense of $39,585 thousand, compared to $4,680,552 thousand and $30,896 thousand in 2023, reflecting a rise in average yield to 3.16% from 2.64%[262]. - Total deposits as of September 30, 2024, were $6.58 billion, an increase of 3.9% compared to $6.33 billion as of December 31, 2023[324]. Interest Income and Margin - The net interest margin for Q3 2024 was reported at 4.10%[218]. - Net interest income for the three months ended September 30, 2024, was $76,158 thousand, an increase from $73,410 thousand for the same period in 2023, representing a growth of 3.8%[220]. - Net interest income for Q3 2024 was $76.2 million, an increase of $2.7 million or 3.7% compared to Q3 2023[251]. - The net interest margin for the nine months ended September 30, 2024, was 4.04%, a decrease of 24 basis points from 4.28% in the same period of 2023[259]. Credit Losses and Provisions - Provision for credit losses increased by $12.0 million to $24.4 million for the nine months ended September 30, 2024, compared to $12.4 million for the same period in 2023, an increase of 96.8%[228]. - Provision for credit losses was $5.0 million for Q3 2024, up from $3.9 million in Q3 2023[245]. - The allowance for credit losses was increased due to ongoing evaluations of credit quality and specific customer relationships in the loan portfolio[270]. - The total allowance for credit losses was $83,159,000 as of September 30, 2024, compared to $80,398,000 as of December 31, 2023[318]. Merger and Corporate Actions - The merger with HomeStreet is pending regulatory approvals, which have not yet been obtained, potentially affecting the merger's completion[215]. - FirstSun raised an initial $80 million in common stock to support the merger with HomeStreet, with plans to increase this amount[216]. - The company reported merger-related expenses of $5.2 million for the nine months ended September 30, 2024, with no such expenses in the same period in 2023[293]. Efficiency and Ratios - The efficiency ratio for the three months ended September 30, 2024, was 65.83%, compared to 61.02% in the same period of 2023, indicating a decline in operational efficiency[220]. - Return on average total assets decreased to 1.13% in Q3 2024 from 1.34% in Q3 2023, while return on average stockholders' equity fell to 8.79% from 12.03%[218]. - The total risk-based capital to risk-weighted assets ratio was 15.25% as of September 30, 2024, compared to 12.93% a year earlier, indicating a strong capital position[220]. Market and Economic Conditions - The company expects revenue from mortgage banking activities to remain below prior year levels due to elevated interest rates and low housing inventory[279]. - The data indicates a significant variability in net interest income based on interest rate changes, highlighting potential risks and opportunities[350]. - The yield curve shape remains unchanged despite the interest rate adjustments[350].

Financial Performance - Net income for Q3 2024 was $22.4 million, or $0.79 per diluted share, down from $25.2 million, or $1.00 per diluted share in Q3 2023[1] - Net income for the quarter was $22,422,000, down from $24,560,000 in the previous quarter[23] - Net income for the quarter was $22,422 thousand, down from $25,232 thousand year-over-year, reflecting a decrease of 3.2%[27] - Diluted earnings per share decreased to $0.79 from $0.88 in the previous quarter[23] - Earnings per share (basic) decreased to $0.81 from $1.01, a decline of 19.8% year-over-year[27] - The company reported an income before income taxes of $28,569 thousand, down from $31,994 thousand, a decrease of 10.3%[27] - Net income (GAAP) for the quarter was $22,422,000, compared to $24,560,000 in the previous quarter and $12,296,000 a year ago[47] - Diluted earnings per share (GAAP) decreased to $0.79 for the quarter, down from $0.88 in the previous quarter and $1.00 a year ago[49] Interest Income and Margin - Net interest margin increased to 4.10%, with net interest income totaling $76.2 million, an increase of $3.3 million from the prior quarter[5] - Net interest income for the quarter ended September 30, 2024, was $76,158,000, an increase from $72,899,000 in the previous quarter[23] - Total interest income for the quarter ended September 30, 2024, was $118,932 thousand, an increase from $106,775 thousand in the same quarter last year, representing a growth of 11.5%[27] - Net interest margin improved to 4.10% for the quarter, up from 4.02% in the previous quarter[49] Loan and Deposit Growth - Loan growth was 6.7% annualized, with total loans reaching $6.4 billion, up from $6.3 billion in the previous quarter[14] - Deposit growth was 1.8% annualized, with total deposits at $6.6 billion, reflecting an increase of $30.4 million in Q3 2024[15] - Total loans held-for-investment increased to $6,443,756,000 from $6,337,162,000 in the previous quarter[23] - Total deposits rose to $6,649,880,000 from $6,619,525,000 in the previous quarter[23] - Total loans, net of deferred costs, fees, premiums, and discounts reached $6,443,756 thousand as of September 30, 2024, up from $6,337,162 thousand on June 30, 2024[42] - Total deposits reached $6,649,880 thousand, reflecting a 4.9% increase compared to $6,339,847 thousand a year ago[31] Credit Losses and Allowance - The provision for credit losses increased to $5.0 million, up from $1.2 million in the prior quarter, driven by loan growth and specific customer relationship deterioration[7] - Provision for credit losses increased significantly to $5,000,000 from $1,200,000 in the previous quarter[23] - The allowance for credit losses as a percentage of total loans was 1.29%, an increase of four basis points from the prior quarter[8] - The allowance for credit losses increased to $83,159 thousand as of September 30, 2024, up from $78,960 thousand on June 30, 2024[43] - Nonperforming loans increased to $65,824 thousand as of September 30, 2024, compared to $62,558 thousand on June 30, 2024[43] Efficiency and Capital Ratios - The efficiency ratio improved to 65.83%, compared to 66.42% in the prior quarter, despite merger costs impacting the ratio[12] - Common equity tier 1 risk-based capital ratio was 13.06%, indicating strong capital ratios above "well-capitalized" thresholds[16] - The common equity tier 1 risk-based capital ratio improved to 13.06% from 10.79% a year earlier, indicating stronger capital position[33] - The total risk-based capital ratio increased to 15.25%, up from 12.93% in September 2023, showing enhanced financial stability[33] Asset Growth - Total assets reached $8,138,487,000, up from $7,999,295,000 in the previous quarter[23] - Total assets increased to $8,138,487,000 as of September 30, 2024, compared to $7,999,295,000 as of June 30, 2024, reflecting a growth of 1.7%[45] - Total stockholders' equity (GAAP) as of September 30, 2024, is $1,034,085,000, an increase from $996,599,000 as of June 30, 2024, representing a growth of 3.9%[45] - Stockholders' equity increased to $1,034,085 thousand, up from $843,719 thousand, marking a growth of 22.6% year-over-year[31] Future Outlook - The company plans to continue expanding its market presence and investing in new technologies to drive future growth[32]

Financial Performance - Net income for Q2 2024 was $24.6 million, or $0.88 per diluted share, down from $28.0 million, or $1.11 per diluted share in Q2 2023[216]. - For the six months ended June 30, 2024, net income was $36.9 million, or $1.32 per diluted share, compared to $54.3 million, or $2.14 per diluted share for the same period in 2023[216]. - Net income for the three months ended June 30, 2024, was $24,560,000, down 12.97% from $28,006,000 for the same period in 2023[218]. - Net income (GAAP) for the year was $36,856 thousand, down from $54,287 thousand, indicating a decrease of 32.06%[221]. - Diluted earnings per share (GAAP) decreased to $0.88 for the three months ended June 30, 2024, from $1.11 in the same period in 2023[223]. Interest Income and Margin - Net interest margin for Q2 2024 was 4.02%, with a return on average total assets of 1.26% and return on average stockholders' equity of 10.03%[216]. - Net interest income for the three months ended June 30, 2024, was $72,899,000, a decrease of 1.27% from $73,835,000 for the same period in 2023[218]. - Net interest income for Q2 2024 was $72.9 million, a decrease of $0.9 million or 1.3% compared to Q2 2023[242]. - Net interest margin was 4.02% for Q2 2024, down from 4.24% in Q2 2023, reflecting a 22 basis point decrease[251]. - Net interest margin for the six months ended June 30, 2024, was 4.00%, down from 4.31% for the same period in 2023, a decrease of 31 basis points[256]. Loan and Deposit Growth - Loan growth for Q2 2024 was 3.3% annualized, while deposit growth was 10.8% annualized[216]. - Total loans, excluding loans held-for-sale, increased to $6,337,162,000 as of June 30, 2024, compared to $6,155,090,000 as of June 30, 2023, representing a growth of 2.95%[218]. - Total deposits rose to $4,951,013 thousand in Q2 2024, compared to $4,280,980 thousand in Q2 2023, marking an increase of approximately 15.66%[259]. - Total deposits increased to $24,150,000 for the three months ended June 30, 2024, up from $11,021,000 in the same period of 2023, a rise of 119.5%[265]. Credit Quality and Losses - A provision for credit loss of $10.6 million negatively impacted net income for the six months ended June 30, 2024[216]. - Provision for credit losses was $1.2 million in Q2 2024, down from $4.4 million in Q2 2023[242]. - The allowance for credit losses to loans was 1.25% as of June 30, 2024, unchanged from the same period in 2023, indicating stable credit quality[218]. - Nonaccrual loans totaled $62.464 million as of June 30, 2024, up from $37.327 million as of December 31, 2023[318]. Merger and Capital Structure - The merger with HomeStreet, Inc. is expected to close in Q4 2024, resulting in total assets of approximately $17 billion and 129 branch locations[213]. - The merger agreement includes an initial capital raise of $80 million, which was later increased to support the merger[214]. - The company has entered into an upfront securities purchase agreement, issuing 2.46 million shares for $80.0 million as part of a merger agreement with HomeStreet[331]. Operational Efficiency - Efficiency ratio for the three months ended June 30, 2024, was 66.42%, compared to 59.15% for the same period in 2023, indicating a decline in operational efficiency[218]. - Noninterest expenses increased by $5.8 million to $63.9 million for Q2 2024, compared to $58.0 million in Q2 2023, primarily driven by a $5.8 million increase in salary and employee benefits due to higher headcount and variable compensation[286]. Regulatory and Market Risks - Interest rate risk is a primary market risk affecting net interest income, with a potential decrease of 9.5% in net interest income under a +300 basis points scenario for 2024[348]. - The company is subject to various regulatory capital requirements and routinely analyzes its capital structure[333].

Financial Performance - Net income for Q2 2024 was $24.6 million, or $0.88 per diluted share, down from $28.0 million, or $1.11 per diluted share in Q2 2023[1]. - Net income for the quarter was $24,560,000, up from $12,296,000 in the previous quarter[21]. - Net income for the quarter ended June 30, 2024, was $24,560 thousand, down from $28,006 thousand in the same quarter of 2023, a decrease of 12.9%[27]. - Diluted earnings per share increased to $0.88 from $0.45 in the prior quarter[21]. - Basic earnings per share for the quarter ended June 30, 2024, was $0.90, compared to $1.12 for the same quarter in 2023, a decrease of 19.6%[27]. - Return on average total assets improved to 1.26% from 0.64% in the previous quarter[21]. - Return on average stockholders' equity (ROAE) (GAAP) was 10.03% for the quarter ended June 30, 2024, compared to 5.15% in March 2024[45]. Revenue and Income Sources - Noninterest income totaled $23.3 million, representing 24.2% of total revenue, an increase of 0.2% from the prior quarter[10]. - Noninterest income rose to $23,274,000 compared to $22,808,000 in the previous quarter[21]. - Total noninterest income decreased to $23,274 thousand for the quarter ended June 30, 2024, down from $24,290 thousand in the same quarter of 2023, a decline of 4.2%[27]. - The company reported an increase in service charges on deposits to $5,946 thousand for the quarter ended June 30, 2024, compared to $5,358 thousand in the same quarter of 2023, an increase of 10.9%[25]. Interest Income and Margin - Net interest margin remained strong at 4.02%, with net interest income totaling $72.9 million, an increase of $2.1 million from the prior quarter[4]. - Net interest income for the quarter ended June 30, 2024, was $72,899,000, an increase from $70,806,000 in the previous quarter[21]. - Total interest income for the quarter ended June 30, 2024, was $114,529 thousand, an increase from $102,032 thousand for the same period in 2023, representing a growth of 12.3%[25]. - Net interest income after provision for credit losses was $71,699 thousand for the quarter ended June 30, 2024, compared to $69,413 thousand for the same quarter in 2023, reflecting an increase of 3.3%[27]. - Net interest margin for the quarter ended June 30, 2024, was 4.02%, compared to 4.24% for the same period in 2023, indicating a decrease of 22 basis points[33]. - The net interest spread for the quarter was 3.09%, down from 3.54% in the previous year, showing a decrease of 45 basis points[33]. Loan and Deposit Growth - Loan growth was 3.3% annualized, with total loans at $6.3 billion as of June 30, 2024, increasing by $52.3 million in Q2 2024[12]. - Deposit growth was 10.8% annualized, with total deposits reaching $6.6 billion, an increase of $0.2 billion in Q2 2024[13]. - Total loans held-for-sale increased to $66,571,000 from $56,813,000 in the previous quarter[23]. - Total deposits rose to $6,619,525,000 compared to $6,445,388,000 in the previous quarter[23]. - Total deposits reached $4,951,013,000, a significant increase from $4,280,980,000, marking a growth of approximately 15.67% year-over-year[33]. - Demand and NOW deposits increased to $621,343,000 with an average yield of 3.80%, compared to $332,695,000 and 2.55% in the prior year[33]. Credit Quality and Losses - The provision for credit losses decreased to $1.2 million, down from $16.5 million in the prior quarter[6]. - Net charge-offs for Q2 2024 were $2.0 million, resulting in an annualized ratio of 0.13% to average loans, compared to 1.11% in the prior quarter[7]. - Provision for credit losses was $1,200 thousand for the quarter ended June 30, 2024, significantly lower than $4,422 thousand for the same quarter in 2023, a decrease of 72.8%[25]. - Nonperforming loans increased to $62,558 thousand as of June 30, 2024, compared to $57,599 thousand in March 31, 2024, indicating a rise of 3.34%[41]. - The ratio of net charge-offs to average loans outstanding decreased to 0.13% for the quarter ended June 30, 2024, down from 1.11% in March 31, 2024, showing an improvement in asset quality[41]. Strategic Developments - The company announced plans for a strategic merger with HomeStreet, Inc. and successfully uplisted to Nasdaq on July 12, 2024[2]. - The company incurred merger-related expenses of $1,046 thousand for the quarter ended June 30, 2024, with no such expenses reported in the same quarter of 2023[27]. Asset and Equity Position - Total assets as of June 30, 2024, were $7,999,295,000, up from $7,781,601,000 in the previous quarter[23]. - Total liabilities rose to $7,002,696 thousand, compared to $6,816,939 thousand in the previous quarter, indicating an increase of 2.7%[29]. - Stockholders' equity reached $996,599 thousand, up from $964,662 thousand, reflecting a growth of 3.1%[29]. - Total stockholders' equity (GAAP) reached $996,599,000 as of June 30, 2024, up from $964,662,000 in March 2024[45]. - Tangible stockholders' equity (non-GAAP) reached $893,599 thousand as of June 30, 2024, compared to $861,011 thousand as of March 31, 2024, reflecting an increase of 3.67%[43].

Financial Performance - FirstSun reported a net income of $12.3 million for Q1 2024, down from $26.3 million in Q1 2023, with diluted earnings per share of $0.45 compared to $1.03 in the prior year[211]. - The provision for credit losses increased to $16.5 million in Q1 2024, compared to $3.36 million in Q1 2023[213]. - Net income (GAAP) for the three months ended March 31, 2024, was $12,296 thousand, a decrease of 53.3% from $26,281 thousand in the same period of 2023[216]. - Return on common stockholders' equity (GAAP) decreased to 5.10% for the three months ended March 31, 2024, down from 13.16% for the same period in 2023[216]. - Income before income taxes increased by $5.5 million to $3.1 million for Q1 2024, compared to a loss of $2.4 million in Q1 2023, driven by higher net interest income and increased revenue from mortgage banking services[221]. Revenue and Income Sources - Noninterest income accounted for 24.4% of total revenue in Q1 2024[211]. - Revenue from mortgage banking services increased by $2.5 million to $10.1 million for Q1 2024, compared to $7.6 million in Q1 2023, primarily due to net sale gains and fees from mortgage loan originations[221]. - Noninterest income for Q1 2024 was $22.8 million, an increase from $18.9 million in Q1 2023, reflecting growth in various service charges and fees[235]. - Income from mortgage banking services increased by $2.1 million to $9,502 thousand in Q1 2024 compared to Q1 2023[1][4]. Asset and Liability Management - Total assets as of Q1 2024 were $7.78 billion, up from $7.61 billion in Q1 2023[213]. - Total deposits grew to $4,849,323 thousand in Q1 2024, compared to $4,066,645 thousand in Q1 2023, with a total interest-bearing liabilities of $5,056,743 thousand[1]. - Total assets increased to $7,648,965 thousand as of March 31, 2024, compared to $7,309,894 thousand in the same period of 2023[1]. - Stockholders' equity increased by $87.5 million, or 10.0%, to $964.7 million as of March 31, 2024, compared to $877.2 million at December 31, 2023[307]. Loan and Deposit Growth - Loan growth was recorded at 1.1% annualized, while deposit growth was 4.5% annualized[211]. - Average total loans grew to $6.3 billion at March 31, 2024, an increase of $0.3 billion or 4.7% compared to March 31, 2023[242]. - Total loans held-for-investment remained stable at $6.3 billion as of March 31, 2024, consistent with December 31, 2023[278]. - Average interest-bearing deposits increased by $0.8 billion or 19.2% in Q1 2024 compared to Q1 2023, supporting the growth in the loan portfolio[243]. Credit Quality and Losses - The provision for credit losses was $16.5 million for Q1 2024, significantly higher than $3.36 million in Q1 2023, indicating increased risk in the loan portfolio[235]. - Total loan charge-offs for the three months ended March 31, 2024, were $17,506,000, compared to $123,000 in the same period last year[289]. - The net charge-offs for the three months ended March 31, 2024, were $17,429,000, compared to $54,000 in the same period last year[289]. - Nonperforming assets include loans categorized as nonaccrual and those greater than 90 days past due, with policies in place to monitor credit quality[292][293]. Efficiency and Cost Management - The efficiency ratio for Q1 2024 was 66.05%, compared to 60.47% in Q1 2023[213]. - Noninterest expenses increased by $5.6 million to $61.8 million for Q1 2024, compared to $56.3 million in Q1 2023[266]. - Salary and employee benefits rose by $2.3 million to $37.4 million in Q1 2024, primarily due to higher wages and incentive accrual[266]. Mergers and Acquisitions - The company entered into a merger agreement with HomeStreet, expected to close in Q4 2024, with a combined total asset projection of approximately $17 billion[208]. - FirstSun raised $80 million through an initial investment agreement to support the merger, with plans to increase this amount[209]. - The company incurred $2.5 million in merger-related expenses in Q1 2024, with no such expenses in Q1 2023[267]. Interest Rate Risk - Interest rate risk is a primary market risk affecting net interest income and fee income related to mortgage origination[316]. - A simulation model is used to analyze the sensitivity of net interest income to changes in interest rates, with a +300 basis points scenario showing a 4.1% change in 2024[324]. - The impact of a -300 basis points change in interest rates results in a -0.6% change in net interest income for 2024[324].

Loan Portfolio and Credit Risk - As of December 31, 2023, non-owner occupied commercial real estate loans accounted for 13.0% of total loans, with a value of $109.3 million for office space loans [56]. - The average FICO score for mortgage loans in 2023 was 736, indicating a focus on stronger borrower credit profiles [64]. - Residential real estate loans are subject to significant fluctuations in value, impacting credit risk and repayment ability [59]. - The company maintains a diversified loan portfolio to manage credit risk effectively across various customer types and loan products [74]. - As of December 31, 2023, approximately 69.6% of the loan portfolio consisted of commercial and industrial and commercial real estate loans, which generally involve higher credit risks [193]. - The company is exposed to higher credit risk due to a significant portion of loans being secured by real estate, with approximately 48.8% of the loan portfolio having real estate as primary collateral [199]. - The allowance for credit losses may prove inadequate, potentially leading to a decrease in net income and capital [190]. - The company’s risk management practices may not adequately reduce credit risk, particularly for loans to small and medium-sized businesses [189]. - Changes in interest rates could lead to increases in nonperforming assets and charge-offs, adversely impacting results of operations and cash flows [205]. - At December 31, 2023, nonperforming assets totaled approximately $67.2 million, representing about 0.85% of total assets, adversely affecting net income and increasing loan administration costs [201]. Economic and Market Conditions - The company expects lower mortgage origination volumes in at least the first half of 2024 due to elevated interest rates [66]. - Economic downturns, including rising interest rates and recessions, are expected to increase realized credit losses and decrease demand for products and services [174]. - The Federal Reserve's monetary policies significantly affect bank loans, investments, and deposits, with potential future changes being unpredictable [169]. - Inflationary pressures have led to significant increases in gas and food prices, which may adversely affect customers and the company's financial position [181]. - The company operates primarily in Texas, Kansas, Colorado, New Mexico, and Arizona, making it vulnerable to regional economic conditions [175]. - The company may face increased deposit and funding costs, decreased demand for loans, and higher levels of nonperforming assets due to adverse economic conditions [179]. Regulatory Environment - The Dodd-Frank Act continues to impact financial institutions, including changes to capital standards and the establishment of the Consumer Financial Protection Bureau [96]. - Regulatory approval is required for mergers and acquisitions, with considerations for competition and public benefits [104]. - The Federal Reserve requires bank holding companies to maintain a minimum leverage ratio and a minimum ratio of qualifying capital to risk-weighted assets [113]. - The capital requirements under Basel III include a common equity Tier 1 (CET1) risk-based capital ratio of 4.5%, a Tier 1 risk-based capital ratio of 6%, and a total risk-based capital ratio of 8% [121]. - The institution is subject to comprehensive capital adequacy requirements intended to protect against losses, with specific higher risk-based capital and leverage requirements [120]. - The Sarbanes-Oxley Act of 2002 imposes additional responsibilities relating to financial statements for the Chief Executive Officer and Chief Financial Officer of reporting companies [117]. - The institution must seek regulatory approval prior to any redemption that would reduce its consolidated net worth by 10% or more [116]. - The institution is required to comply with capital requirements under the Federal Deposit Insurance Corporation Improvement Act of 1991 (FDICIA) [129]. Operational and Cybersecurity Risks - Increased operational risks, including fraud and errors, could adversely impact the company's financial condition and results of operations [231]. - The company relies heavily on digital technologies and information systems for operations, increasing exposure to cybersecurity risks due to the sophistication of external threats [241]. - In 2023, the company was notified of vulnerabilities in Progress Software's MOVEit file transfer software, potentially compromising customer data [242]. - The company has implemented a risk management framework to mitigate various risks, including cybersecurity, but acknowledges that it may not be fully effective [244]. - Cybersecurity remains a focus for the company, with ongoing efforts to enhance controls and processes to protect against evolving threats [243]. - Disruptions from technology failures or cyber-attacks could lead to significant operational interruptions and financial losses [237]. - The risk of operational disruptions from external events, such as natural disasters or cyber-attacks, remains a significant concern [240]. - The company’s business recovery plan may not adequately prevent significant operational interruptions or losses [243]. Employee and Corporate Governance - The total number of employees as of December 31, 2023, was 1,128, with 1,110 being full-time equivalent employees [84]. - The company offers a competitive benefits package, including a 401(k) plan with employer matching contributions, healthcare benefits, and tuition reimbursement [85]. - FirstSun qualifies as an "emerging growth company," allowing it to take advantage of reduced reporting requirements under the JOBS Act [91]. - The company must remain well managed and well capitalized to maintain its status as a financial holding company [103]. - The company emphasizes the importance of maintaining its reputation as a community bank, which is critical for business success [246]. Consumer Protection and Compliance - The Bank is subject to various consumer protection regulations, including the Dodd-Frank Act, which mandates compliance with fair lending and consumer protection laws [143]. - The Bank's loan operations are governed by multiple federal laws, including the Truth-In-Lending Act and the Fair Housing Act, ensuring fair lending practices [144]. - The CFPB has broad authority to regulate consumer financial products, impacting Sunflower Bank's operations and compliance requirements [147]. - Anti-money laundering programs must comply with the Bank Secrecy Act and the USA PATRIOT Act, requiring enhanced due diligence and reporting of suspicious transactions [151]. - The USA PATRIOT Act facilitates information sharing among financial institutions and regulators to combat terrorism and money laundering [153]. - The Bank must file suspicious activity reports if it identifies transactions with individuals on government watch lists [154]. Financial Performance - The company's mortgage revenue decreased to $31.4 million in 2023 from $46.3 million in 2022, indicating a decline of approximately 32% year-over-year due to rising interest rates [220]. - The company expects mortgage origination volume to decline as interest rates increase, which adversely affects profitability [219]. - Rising interest rates have led to increased competition for deposits, resulting in higher interest expenses and potential compression of net interest margins [210]. - A flat or inverted yield curve has been observed, which may reduce net interest margins and adversely affect loan and investment portfolios [211]. - The cost of funds has increased over the past 12 months, primarily due to rising deposit costs, which may continue into 2024 [208].

Financial Performance - Net income for Q3 2023 was $25.2 million, or $1.00 per diluted share, compared to $26.5 million, or $1.04 per diluted share in Q3 2022[238]. - For the nine months ended September 30, 2023, net income totaled $79.5 million, or $3.13 per diluted share, compared to $34.6 million, or $1.49 per diluted share for the same period in 2022[239]. - Net income for the three months ended September 30, 2023, was $25,232,000, a decrease of 4.8% from $26,513,000 for the same period in 2022[241]. - Income before income taxes for the nine months ended September 30, 2023, increased by $57.7 million to $108.4 million, driven by higher net interest income and lower noninterest expenses[248]. - Net interest income for the three months ended September 30, 2023, was $73,410,000, an increase of 7.5% from $68,486,000 for the same period in 2022[241]. Asset and Loan Growth - Total loans, excluding loans held-for-sale, increased to $6,179,522,000 as of September 30, 2023, up from $5,556,686,000 a year earlier, representing an increase of 11.2%[241]. - Total assets reached $7,756,875,000 as of September 30, 2023, compared to $7,052,917,000 a year earlier, marking a growth of 10%[241]. - Total average loans grew to $6.2 billion at September 30, 2023, an increase of $0.7 billion or 12.1% compared to September 30, 2022[271]. - Identifiable assets for the Banking segment grew by $0.5 billion to $6.8 billion at September 30, 2023, from $6.3 billion in the same period in 2022[247]. - Total loans increased to $6.2 billion as of September 30, 2023, compared to $5.9 billion at December 31, 2022[320]. Deposits and Funding - Total deposits increased to $6,339,847,000 as of September 30, 2023, from $5,760,418,000 a year earlier, reflecting a growth of 10.1%[241]. - Approximately $2.0 billion or 32.0% of the deposit portfolio was uninsured as of September 30, 2023[340]. - Total deposits rose by $0.6 billion to $6.3 billion at September 30, 2023, compared to $5.8 billion at December 31, 2022, marking a 10.4% growth[339]. - Immediate funding availability totaled $3.3 billion as of September 30, 2023[348]. - Average interest-bearing deposits increased by $0.8 billion or 19.4% in Q3 2023 compared to the same period in 2022[272]. Noninterest Income and Expenses - Noninterest income accounted for 20.3% of total revenue in Q3 2023[238]. - Noninterest income for the nine months ended September 30, 2023, was $61,871,000, compared to $70,948,000 for the same period in 2022, reflecting a decrease of 12.9%[241]. - Noninterest income decreased by $6.3 million to $18.7 million for the third quarter of 2023 from $25.0 million for the same period in 2022, primarily due to a decrease in income from mortgage banking services[293]. - Noninterest expenses increased by $0.6 million to $56.2 million for Q3 2023, compared to $55.5 million in Q3 2022[305]. - Total noninterest expenses decreased by $13.2 million to $170.5 million for the nine months ended September 30, 2023, from $183.7 million in the same period in 2022[307]. Credit Quality and Losses - Provision for credit losses rose by $3.1 million to $6.3 million for Q3 2023, attributed to organic loan growth and a $2.9 million charge-off on a certain exited customer relationship[247]. - The allowance for credit losses was $78,666,000, representing 1.27% of total loans, an increase from 1.07% in the previous year[331]. - Nonaccrual loans as a percentage of total loans increased to 0.66% as of September 30, 2023, up from 0.49% at December 31, 2022[337]. - The provision for credit losses for the three months ended September 30, 2023, was $3,600,000, compared to $3,750,000 for the same period in 2022[331]. - Total nonperforming assets increased to $49.1 million as of September 30, 2023, from $35.4 million at December 31, 2022, representing a 38.7% increase[337]. Regulatory and Capital Requirements - The company is subject to various regulatory capital requirements and routinely analyzes its capital structure[352]. - The effective tax rate for the nine months ended September 30, 2023, was 21.3%, compared to 19.8% for the same period in 2022[311]. - The Bank could pay dividends to FirstSun of approximately $165.5 million without prior regulatory approval as of September 30, 2023[345]. - Stockholders' equity increased to $843.7 million as of September 30, 2023, up by $69.2 million or 8.9% from $774.5 million at December 31, 2022[351]. - Liquid assets amounted to $435.6 million, or 5.6% of total assets, as of September 30, 2023, compared to $307.9 million, or 4.1% of total assets, at December 31, 2022[346].

Financial Performance - Net income for Q1 2023 was $26.3 million, or $1.03 per diluted share, compared to $7.7 million, or $0.41 per diluted share in Q1 2022[230]. - Return on average total assets increased to 1.44% in Q1 2023 from 0.54% in Q1 2022, while return on average stockholders' equity rose to 13.37% from 5.85%[230]. - Net interest income (GAAP) rose by $32.2 million to $73.5 million for the first quarter of 2023, compared to $41.3 million for the same period in 2022, reflecting an increase of 78.0%[238]. - Income before income taxes for the Banking segment increased by $28.6 million to $38.8 million for the first quarter of 2023, compared to $10.2 million for the same period in 2022[238]. - The effective tax rate for Q1 2023 was 21.4%, up from 13.0% in Q1 2022, reflecting increased income during the period[281]. Asset and Deposit Growth - Total assets reached $7.61 billion, up from $5.73 billion year-over-year[232]. - Total deposits increased to $5.99 billion, compared to $4.95 billion in the previous year[232]. - Total assets (GAAP) increased to $7,610,456 thousand as of March 31, 2023, compared to $5,733,748 thousand for the same period in 2022, marking a growth of 32.7%[237]. - Total deposits increased by $0.2 billion to $6.0 billion at March 31, 2023, compared to December 31, 2022[311]. Loan Performance - Loan growth was reported at 10.1% on an annualized basis[230]. - Total loan originations for sale decreased to $200 million for the first quarter of 2023, down from $300 million for the same period in 2022, a decline of 33.3%[239]. - Total loans as of March 31, 2023, were $6.1 billion, an increase from $5.9 billion as of December 31, 2022[292]. - The loan portfolio composition includes 39.9% in commercial and industrial loans, 29.6% in commercial real estate, and 17.3% in residential real estate[292]. Noninterest Income and Expenses - Noninterest income accounted for 20.3% of total revenue in Q1 2023[230]. - Noninterest income decreased by $4.8 million to $18.9 million in Q1 2023 from $23.7 million in Q1 2022, primarily due to a decline in income from mortgage banking services[271]. - Total noninterest expenses increased by $3.8 million to $56.3 million in Q1 2023, compared to $52.5 million in Q1 2022, mainly due to higher occupancy, salary, and other expenses[279]. Efficiency and Margins - The efficiency ratio improved to 60.47% in Q1 2023, down from 80.75% in Q1 2022[232]. - The net interest margin improved to 4.39% from 3.08% year-over-year[232]. - Average earning assets (non-GAAP) increased to $6,755,933 thousand with a net interest margin of 4.46% for the three months ended March 31, 2023[235]. Credit Quality - The allowance for credit losses to loans was reported at 1.23%[232]. - The provision for credit losses for Q1 2023 was $3.4 million, a decrease from $3.7 million in Q1 2022, attributed to slightly lower loan growth[269]. - Nonperforming loans to total loans ratio increased to 0.54% as of March 31, 2023, from 0.49% at December 31, 2022[309]. - The allowance for credit losses at the end of the period was $74,459 thousand, up from $50,509 thousand at December 31, 2022[306]. Market and Regulatory Environment - The company is subject to various regulatory capital requirements and routinely analyzes its capital structure[320]. - There are various legal actions pending against the company, which are incidental to its business operations[323]. - The company has entered into derivative contracts to manage interest rate exposure and provide services to clients[322]. - A simulation model indicates that a 300 basis point increase in interest rates could lead to a 5.9% increase in net interest income as of March 31, 2023[328].

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 __________________________________ FORM 10-K __________________________________ ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2022 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 registra ...