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 ...

Table of Contents 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 September 30, 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 registrant as specified in its cha ...

Table of Contents 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, 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 registrant as specified in its charter) ...

Table of Contents 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 March 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 registrant as specified in its charter ...

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, 2021 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) ___ ...

Table of Contents UNITED STATES (Exact name of registrant as specified in its charter) SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2021 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For transition period from to Commission File Number 333-258176 FIRSTSUN CAPITAL BANCORP Delaware 81-4552413 (St ...