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]

[First Quarter 2025 Performance Overview](index=1&type=section&id=First%20Quarter%202025%20Performance%20Overview) FirstSun Capital Bancorp reported strong Q1 2025 results with significant increases in net income and EPS, alongside robust loan and deposit growth and healthy profitability ratios [Highlights](index=1&type=section&id=Highlights) FirstSun Capital Bancorp reported strong Q1 2025 results with significant increases in net income and EPS compared to Q1 2024, alongside robust loan and deposit growth and healthy profitability ratios Key Performance Indicators (Q1 2025 vs Q1 2024) | Metric | Q1 2025 | Q1 2024 | | :-------------------------------- | :------ | :------ | | Net income | $23.6M | $12.3M | | Diluted EPS | $0.83 | $0.45 | | Net interest margin | 4.07% | N/A | | Return on average total assets | 1.20% | N/A | | Return on average stockholders' equity | 9.03% | N/A | | Loan growth (annualized) | 6.8% | N/A | | Deposit growth (annualized) | 12.3% | N/A | | Noninterest income to total revenue | 22.6% | N/A | [CEO Commentary](index=1&type=section&id=CEO%20Commentary) CEO Neal Arnold expressed satisfaction with the strong quarter, highlighting growth in C&I and consumer relationships, a healthy net interest margin, and strategic expansion into Southern California with new branch openings - Focus on growing C&I and consumer relationships across southwestern and western markets continues to yield favorable results[3](index=3&type=chunk) - New branch locations officially opened in San Diego and Los Angeles, signaling growth in Southern California markets[4](index=4&type=chunk) [Key Financial Results](index=1&type=section&id=Key%20Financial%20Results) FirstSun reported a sequential increase in net income and improved profitability metrics for Q1 2025 compared to Q4 2024, with prior quarter's non-recurring expenses impacting comparative returns Financial Performance (Q1 2025 vs Q4 2024) | Metric | Q1 2025 | Q4 2024 | | :-------------------------------- | :------ | :------ | | Net income | $23.6M | $16.4M | | Diluted EPS | $0.83 | $0.58 | | Adjusted net income (non-GAAP) | N/A | $24.3M | | Adjusted diluted EPS (non-GAAP) | N/A | $0.86 | | Return on average total assets | 1.20% | 0.81% | | Return on average stockholders' equity | 9.03% | 6.22% | - Fourth quarter of 2024 non-recurring expenses negatively impacted return on average total assets by **0.39%** and return on average stockholders' equity by **3.02%**[5](index=5&type=chunk) [Net Interest Income and Net Interest Margin](index=1&type=section&id=Net%20Interest%20Income%20and%20Net%20Interest%20Margin) Net interest income slightly decreased sequentially in Q1 2025, with net interest margin also seeing a minor reduction, primarily due to a decrease in earning asset yield largely offset by a lower cost of interest-bearing liabilities Net Interest Performance (Q1 2025 vs Q4 2024) | Metric | Q1 2025 | Q4 2024 | | :-------------------------------- | :------ | :------ | | Net interest income | $74.5M | $77.0M | | Net interest margin | 4.07% | 4.09% | - Yield on earning assets decreased by **13 basis points**, largely offset by a **16 basis point** decrease in the cost of interest-bearing liabilities[6](index=6&type=chunk) - Loan yield decreased by **15 basis points** to **6.36%** due to the declining interest rate environment. Total cost of interest-bearing deposits decreased by **12 basis points** to **2.73%**[8](index=8&type=chunk) [Asset Quality and Provision for Credit Losses](index=2&type=section&id=Asset%20Quality%20and%20Provision%20for%20Credit%20Losses) The provision for credit losses in Q1 2025 was $3.8 million, influenced by a specific customer relationship and economic uncertainty, partially mitigated by portfolio upgrades. Net charge-offs were positive, and nonperforming assets increased Asset Quality Metrics (Q1 2025 vs Q4 2024) | Metric | Q1 2025 | Q4 2024 | | :-------------------------------- | :------ | :------ | | Provision for credit losses | $3.8M | $4.85M | | Net charge-offs | $0.6M | $(0.5)M | | Annualized net charge-offs to average loans | 0.04% | (0.03)% | | Allowance for credit losses to total loans | 1.42% | 1.38% | | Nonperforming assets to total assets | 1.02% | 0.92% | [Noninterest Income](index=2&type=section&id=Noninterest%20Income) Noninterest income remained stable in Q1 2025, with a slight increase driven by higher loan syndication and swap service fees, despite a decrease in mortgage banking income Noninterest Income Breakdown (Q1 2025 vs Q4 2024) | Metric | Q1 2025 | Q4 2024 | | :-------------------------------- | :------ | :------ | | Total noninterest income | $21.7M | $21.6M | | Mortgage banking income | -$0.6M | N/A | | Other noninterest income | +$0.8M | N/A | | Noninterest income to total revenue | 22.6% | 21.9% | - Increase in other noninterest income primarily due to higher loan syndication and swap service fees[13](index=13&type=chunk) [Noninterest Expense](index=2&type=section&id=Noninterest%20Expense) Noninterest expense significantly decreased in Q1 2025, leading to an improved efficiency ratio, primarily due to lower legal, travel, entertainment, marketing, and collection/appraisal expenses, offsetting seasonal increases in salaries and benefits Noninterest Expense and Efficiency (Q1 2025 vs Q4 2024) | Metric | Q1 2025 | Q4 2024 | | :-------------------------------- | :------ | :------ | | Total noninterest expense | $62.7M | $73.7M | | Adjusted noninterest expense (non-GAAP) | N/A | $62.8M | | Efficiency ratio | 65.19% | 74.66% | | Adjusted efficiency ratio (non-GAAP) | 65.19% | 63.63% | - Decrease in noninterest expense was driven by reductions in legal, travel and entertainment, marketing, and collection and appraisal expenses, offsetting seasonal increases in salary and employee benefits[13](index=13&type=chunk) [Tax Rate](index=2&type=section&id=Tax%20Rate) The effective tax rate for Q1 2025 increased to 20.6% from 18.9% in the prior quarter Effective Tax Rate (Q1 2025 vs Q4 2024) | Metric | Q1 2025 | Q4 2024 | | :-------------------------------- | :------ | :------ | | Effective tax rate | 20.6% | 18.9% | [Balance Sheet Overview](index=3&type=section&id=Balance%20Sheet%20Overview) FirstSun's balance sheet showed growth in total loans and deposits in Q1 2025, maintaining strong capital ratios well above regulatory thresholds [Loans](index=3&type=section&id=Loans) Total loans increased by **$107.7 million** quarter-over-quarter, primarily driven by commercial and industrial loans, resulting in an annualized growth rate of **6.8%** Loan Portfolio Growth | Metric | March 31, 2025 | December 31, 2024 | | :-------------------------------- | :------------- | :---------------- | | Total loans | $6.5B | $6.4B | | Increase (QoQ) | $107.7M | N/A | | Annualized growth | 6.8% | N/A | - Loan growth primarily due to an increase of **$137.3 million** in commercial and industrial (C&I) loans, partially offset by a **$28.3 million** decrease in commercial real estate[17](index=17&type=chunk) [Deposits](index=3&type=section&id=Deposits) Total deposits grew by **$202.0 million** quarter-over-quarter, an annualized growth of **12.3%**, mainly from savings, money market, and noninterest-bearing demand accounts Deposit Trends | Metric | March 31, 2025 | December 31, 2024 | | :-------------------------------- | :------------- | :---------------- | | Total deposits | $6.9B | $6.7B | | Increase (QoQ) | $202.0M | N/A | | Annualized growth | 12.3% | N/A | | Noninterest-bearing deposits to total deposits | 22.9% | N/A | | Loan-to-deposit ratio | 94.3% | N/A | - Deposit growth primarily due to increases in savings and money market accounts (**$140.7 million**), noninterest-bearing demand deposit accounts (**$33.6 million**), and interest-bearing demand accounts (**$22.9 million**)[18](index=18&type=chunk) [Capital](index=3&type=section&id=Capital) Capital ratios remained strong and above 'well-capitalized' thresholds, with book value per share increasing to **$38.49** Capital Ratios and Book Value | Metric | March 31, 2025 | December 31, 2024 | | :-------------------------------- | :------------- | :---------------- | | Common equity tier 1 risk-based capital ratio | 13.26% | N/A | | Total risk-based capital ratio | 15.52% | N/A | | Tier 1 leverage ratio | 12.47% | N/A | | Book value per share | $38.49 | $37.58 | | Tangible book value per share (non-GAAP) | $34.88 | $33.94 | - Capital ratios remain strong and above 'well-capitalized' thresholds[19](index=19&type=chunk) [Company Information and Non-GAAP Introduction](index=4&type=section&id=Company%20Information%20and%20Non-GAAP%20Introduction) This section provides an overview of FirstSun Capital Bancorp, its operations, and the rationale for using non-GAAP financial measures in its reporting [About FirstSun Capital Bancorp](index=4&type=section&id=About%20FirstSun%20Capital%20Bancorp) FirstSun Capital Bancorp, headquartered in Denver, Colorado, is the financial holding company for Sunflower Bank, N.A., operating under multiple brands and providing a full range of financial services across seven states, with mortgage capabilities in 43 states, and total consolidated assets of **$8.2 billion** as of March 31, 2025 - Headquartered in Denver, Colorado, FirstSun Capital Bancorp is the financial holding company for Sunflower Bank, N.A.[22](index=22&type=chunk) - Operates as Sunflower Bank, First National 1870, and Guardian Mortgage (rebranding to Sunflower Bank Mortgage Lending), offering relationship-focused services for personal, business, and wealth management[22](index=22&type=chunk) Company Overview | Metric | Value | | :-------------------------------- | :---------- | | Total consolidated assets (as of March 31, 2025) | $8.2 billion | | States with customers | 7 | | States with mortgage capabilities | 43 | [Non-GAAP Financial Measures Introduction](index=4&type=section&id=Non-GAAP%20Financial%20Measures%20Introduction) FirstSun uses non-GAAP financial measures to provide a clearer understanding of ongoing operations, enhance comparability with prior periods, and illustrate the impact of significant items, believing these measures are useful for management and investors, though not a substitute for GAAP - Non-GAAP financial measures are used by management to analyze performance, operational efficiency, understand ongoing operations, enhance comparability, and demonstrate effects of significant items[20](index=20&type=chunk) - These measures should not be viewed as a substitute for GAAP financial measures and may not be comparable to those presented by other companies[20](index=20&type=chunk) - Reconciliations to the most comparable GAAP equivalent are provided in tables starting on page 14[21](index=21&type=chunk) [Day-Count Convention](index=4&type=section&id=Day-Count%20Convention) Annualized ratios in the report are presented using the Actual/Actual day-count convention, with prior period ratios recalculated to ensure conformity - Annualized ratios are presented utilizing the Actual/Actual day-count convention[24](index=24&type=chunk) - Prior period annualized ratios have been recalculated to conform to the current presentation[24](index=24&type=chunk) [Detailed Financial Tables](index=5&type=section&id=Detailed%20Financial%20Tables) This section presents comprehensive financial tables, including summary data, consolidated statements of income and balance sheets, capital ratios, net interest margin details, deposit breakdowns, balance sheet ratios, loan portfolio, and asset quality metrics [Summary Data](index=5&type=section&id=Summary%20Data) This section provides a multi-quarter summary of key financial performance indicators, including net interest income, net income, EPS, profitability ratios, and balance sheet totals, offering a quick comparative overview Quarterly Summary Data | Metric | March 31, 2025 | December 31, 2024 | September 30, 2024 | June 30, 2024 | March 31, 2024 | | :-------------------------------- | :--------------- | :---------------- | :----------------- | :------------ | :------------- | | Net interest income ($ in thousands) | 74,478 | 77,047 | 76,158 | 72,899 | 70,806 | | Net income ($ in thousands) | 23,569 | 16,350 | 22,422 | 24,560 | 12,296 | | Diluted earnings per share ($) | 0.83 | 0.58 | 0.79 | 0.88 | 0.45 | | Return on average total assets (%) | 1.20 | 0.81 | 1.12 | 1.27 | 0.65 | | Total assets ($ in thousands) | 8,216,458 | 8,097,387 | 8,138,487 | 7,999,295 | 7,781,601 | | Total deposits ($ in thousands) | 6,874,239 | 6,672,260 | 6,649,880 | 6,619,525 | 6,445,388 | | Total stockholders' equity ($ in thousands) | 1,068,295 | 1,041,366 | 1,034,085 | 996,599 | 964,662 | | Book value per share ($) | 38.49 | 37.58 | 37.38 | 36.31 | 35.15 | [Condensed Consolidated Statements of Income](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Income) The consolidated income statements show a significant increase in net income for Q1 2025 compared to Q1 2024, driven by a lower provision for credit losses and higher net interest income, despite a slight decrease in total noninterest income Consolidated Statements of Income | Metric | Q1 2025 ($ in thousands) | Q1 2024 ($ in thousands) | Change (QoQ) | | :-------------------------------- | :----------------------- | :----------------------- | :----------- | | Total interest income | 110,447 | 110,040 | +$407 | | Total interest expense | 35,969 | 39,234 | -$3,265 | | Net interest income | 74,478 | 70,806 | +$3,672 | | Provision for credit losses | 3,800 | 16,500 | -$12,700 | | Total noninterest income | 21,729 | 22,808 | -$1,079 | | Total noninterest expense | 62,722 | 61,828 | +$894 | | Income before income taxes | 29,685 | 15,286 | +$14,399 | | Net income | 23,569 | 12,296 | +$11,273 | | Diluted earnings per share | 0.83 | 0.45 | +$0.38 | [Condensed Consolidated Balance Sheets](index=8&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) The balance sheet as of March 31, 2025, shows growth in total assets, loans, and deposits compared to the previous quarter and year-ago period, with a notable increase in cash and cash equivalents Consolidated Balance Sheets | Metric | March 31, 2025 ($ in thousands) | December 31, 2024 ($ in thousands) | March 31, 2024 ($ in thousands) | | :-------------------------------- | :------------------------------ | :------------------------------- | :------------------------------ | | Total assets | 8,216,458 | 8,097,387 | 7,781,601 | | Loans, net | 6,392,218 | 6,288,136 | 6,205,039 | | Total deposits | 6,874,239 | 6,672,260 | 6,445,388 | | Total liabilities | 7,148,163 | 7,056,021 | 6,816,939 | | Total stockholders' equity | 1,068,295 | 1,041,366 | 964,662 | | Cash and cash equivalents | 621,377 | 615,917 | 383,605 | [Consolidated Capital Ratios](index=9&type=section&id=Consolidated%20Capital%20Ratios) FirstSun maintained strong capital ratios well above regulatory thresholds, showing a consistent upward trend in key metrics like Common Equity Tier 1 and Total Risk-Based Capital ratios over the past year Capital Adequacy Ratios | Capital Ratio | March 31, 2025 | December 31, 2024 | September 30, 2024 | June 30, 2024 | March 31, 2024 | | :-------------------------------- | :------------- | :---------------- | :----------------- | :------------ | :------------- | | Stockholders' equity to total assets | 13.00 % | 12.86 % | 12.71 % | 12.46 % | 12.40 % | | Tier 1 leverage ratio | 12.47 % | 12.11 % | 11.96 % | 11.83 % | 11.73 % | | Common equity tier 1 risk-based capital ratio | 13.26 % | 13.18 % | 13.06 % | 12.80 % | 12.54 % | | Tier 1 risk-based capital ratio | 13.26 % | 13.18 % | 13.06 % | 12.80 % | 12.54 % | | Total risk-based capital ratio | 15.52 % | 15.42 % | 15.25 % | 14.95 % | 14.73 % | [Summary of Net Interest Margin](index=10&type=section&id=Summary%20of%20Net%20Interest%20Margin) The net interest margin for Q1 2025 was **4.07%**, slightly down from the prior quarter but up from Q1 2024. The yield on earning assets decreased, while the cost of interest-bearing liabilities also declined, contributing to the overall margin Net Interest Margin Analysis | Metric | Q1 2025 | Q4 2024 | Q3 2024 | Q2 2024 | Q1 2024 | | :-------------------------------- | :------ | :------ | :------ | :------ | :------ | | Average Earning Assets ($ in thousands) | 7,423,376 | 7,492,248 | 7,430,357 | 7,256,763 | 7,100,323 | | Yield on Earning Assets | 6.03 % | 6.16 % | 6.37 % | 6.35 % | 6.23 % | | Average Interest-Bearing Liabilities ($ in thousands) | 5,225,883 | 5,254,597 | 5,234,940 | 5,173,959 | 5,056,743 | | Cost of Interest-Bearing Liabilities | 2.79 % | 2.95 % | 3.25 % | 3.24 % | 3.12 % | | Net interest spread | 3.24 % | 3.21 % | 3.12 % | 3.11 % | 3.11 % | | Net interest margin | 4.07 % | 4.09 % | 4.08 % | 4.04 % | 4.01 % | | Net interest margin (on FTE basis) | 4.13 % | 4.15 % | 4.13 % | 4.10 % | 4.08 % | [Deposits Breakdown](index=12&type=section&id=Deposits%20Breakdown) Total deposits increased across consumer, business, and wholesale segments in Q1 2025, with significant growth in consumer money market and business noninterest-bearing accounts Deposit Composition | Deposit Type | March 31, 2025 ($ in thousands) | December 31, 2024 ($ in thousands) | September 30, 2024 ($ in thousands) | June 30, 2024 ($ in thousands) | March 31, 2024 ($ in thousands) | | :-------------------------------- | :------------------------------ | :------------------------------- | :-------------------------------- | :----------------------------- | :------------------------------ | | Total consumer deposits | 3,503,150 | 3,385,487 | 3,372,454 | 3,474,586 | 3,402,272 | | Total business deposits | 2,926,208 | 2,842,033 | 2,787,532 | 2,703,061 | 2,665,093 | | Wholesale deposits | 444,881 | 444,740 | 489,894 | 441,878 | 378,023 | | Total deposits | 6,874,239 | 6,672,260 | 6,649,880 | 6,619,525 | 6,445,388 | [Balance Sheet Ratios](index=12&type=section&id=Balance%20Sheet%20Ratios) Key balance sheet ratios show stable cash to total assets, a decreasing loan-to-deposit ratio, and a slight increase in uninsured deposits, while wholesale funding sources decreased Key Balance Sheet Ratios | Ratio | March 31, 2025 | December 31, 2024 | September 30, 2024 | June 30, 2024 | March 31, 2024 | | :-------------------------------- | :------------- | :---------------- | :----------------- | :------------ | :------------- | | Cash to total assets | 7.50 % | 7.50 % | 6.90 % | 6.60 % | 4.80 % | | Loan to deposit ratio | 94.3 % | 95.6 % | 96.9 % | 95.7 % | 97.5 % | | Uninsured deposits to total deposits | 35.2 % | 34.8 % | 32.7 % | 32.1 % | 32.0 % | | Uninsured and uncollateralized deposits to total deposits | 26.4 % | 25.2 % | 26.8 % | 25.5 % | 25.2 % | | Wholesale deposits and borrowings to total liabilities | 6.7 % | 8.2 % | 9.9 % | 8.4 % | 7.7 % | [Loan Portfolio](index=13&type=section&id=Loan%20Portfolio) The loan portfolio saw growth in Commercial and Industrial (C&I) and Residential Real Estate loans in Q1 2025, while Commercial Real Estate and Public Finance segments experienced slight decreases Loan Portfolio Composition | Loan Type | March 31, 2025 ($ in thousands) | December 31, 2024 ($ in thousands) | September 30, 2024 ($ in thousands) | June 30, 2024 ($ in thousands) | March 31, 2024 ($ in thousands) | | :-------------------------------- | :------------------------------ | :------------------------------- | :-------------------------------- | :----------------------------- | :------------------------------ | | Commercial and industrial | 2,635,028 | 2,497,772 | 2,527,636 | 2,431,110 | 2,480,078 | | Commercial real estate: Non-owner occupied | 733,949 | 752,861 | 821,670 | 866,999 | 836,515 | | Commercial real estate: Owner occupied | 679,137 | 702,773 | 700,325 | 660,511 | 642,930 | | Commercial real estate: Construction and land | 386,056 | 362,677 | 333,457 | 350,878 | 326,447 | | Commercial real estate: Multifamily | 85,239 | 94,355 | 95,125 | 94,220 | 94,898 | | Total commercial real estate | 1,884,381 | 1,912,666 | 1,950,577 | 1,972,608 | 1,900,790 | | Residential real estate | 1,195,714 | 1,180,610 | 1,172,459 | 1,146,989 | 1,109,676 | | Public Finance | 551,252 | 554,784 | 536,776 | 537,872 | 579,991 | | Consumer | 39,096 | 41,345 | 45,267 | 42,129 | 40,317 | | Other | 178,537 | 189,180 | 211,041 | 206,454 | 174,016 | | Total loans, net of deferred costs, fees, premiums, and discounts | 6,484,008 | 6,376,357 | 6,443,756 | 6,337,162 | 6,284,868 | [Asset Quality](index=13&type=section&id=Asset%20Quality) Asset quality metrics for Q1 2025 show an increase in net charge-offs and nonperforming assets compared to the prior quarter, with the allowance for credit losses to total loans also rising Asset Quality Trends | Metric | March 31, 2025 | December 31, 2024 | September 30, 2024 | June 30, 2024 | March 31, 2024 | | :-------------------------------- | :------------- | :---------------- | :----------------- | :------------ | :------------- | | Net charge-offs (recoveries) ($ in thousands) | 631 | (462) | 1,401 | 2,009 | 17,429 | | Allowance for credit losses ($ in thousands) | 91,790 | 88,221 | 83,159 | 78,960 | 79,829 | | Nonperforming loans ($ in thousands) | 78,590 | 69,050 | 65,824 | 62,558 | 57,599 | | Nonperforming assets ($ in thousands) | 83,504 | 74,188 | 70,302 | 67,055 | 62,013 | | Ratio of net charge-offs (recoveries) to average loans outstanding | 0.04 % | (0.03)% | 0.09 % | 0.13 % | 1.12 % | | Allowance for credit losses to total loans outstanding | 1.42 % | 1.38 % | 1.29 % | 1.25 % | 1.27 % | | Allowance for credit losses to total nonperforming loans | 116.80 % | 127.76 % | 126.34 % | 126.22 % | 138.59 % | | Nonperforming loans to total loans | 1.21 % | 1.08 % | 1.02 % | 0.99 % | 0.92 % | | Nonperforming assets to total assets | 1.02 % | 0.92 % | 0.86 % | 0.84 % | 0.80 % | [Non-GAAP Reconciliations](index=14&type=section&id=Non-GAAP%20Reconciliations) This section provides detailed reconciliations of non-GAAP financial measures to their most comparable GAAP equivalents, offering adjusted views of performance and capital [Tangible Stockholders' Equity to Tangible Assets](index=14&type=section&id=Tangible%20Stockholders%27%20Equity%20to%20Tangible%20Assets) This reconciliation adjusts GAAP stockholders' equity and total assets by removing goodwill and other intangible assets to derive tangible ratios, providing a clearer view of capital strength excluding intangible items Tangible Equity and Assets Reconciliation | Metric | March 31, 2025 | December 31, 2024 | September 30, 2024 | June 30, 2024 | March 31, 2024 | | :-------------------------------- | :------------- | :---------------- | :----------------- | :------------ | :------------- | | Total stockholders' equity (GAAP) ($ in thousands) | 1,068,295 | 1,041,366 | 1,034,085 | 996,599 | 964,662 | | Tangible stockholders' equity (non-GAAP) ($ in thousands) | 968,006 | 940,449 | 931,736 | 893,599 | 861,011 | | Total assets (GAAP) ($ in thousands) | 8,216,458 | 8,097,387 | 8,138,487 | 7,999,295 | 7,781,601 | | Tangible assets (non-GAAP) ($ in thousands) | 8,116,169 | 7,996,470 | 8,036,138 | 7,896,295 | 7,677,950 | | Tangible stockholders' equity to tangible assets (non-GAAP) | 11.93 % | 11.76 % | 11.59 % | 11.32 % | 11.21 % | [Tangible Book Value Per Share](index=14&type=section&id=Tangible%20Book%20Value%20Per%20Share) The tangible book value per share, a non-GAAP measure, is calculated by adjusting GAAP stockholders' equity for intangible assets and dividing by total shares outstanding, providing a more conservative valuation of equity per share Tangible Book Value Per Share Reconciliation | Metric | March 31, 2025 | December 31, 2024 | September 30, 2024 | June 30, 2024 | March 31, 2024 | | :-------------------------------- | :------------- | :---------------- | :----------------- | :------------ | :------------- | | Book value per share (GAAP) ($) | 38.49 | 37.58 | 37.38 | 36.31 | 35.15 | | Tangible book value per share (non-GAAP) ($) | 34.88 | 33.94 | 33.68 | 32.56 | 31.37 | [Adjusted Net Income](index=14&type=section&id=Adjusted%20Net%20Income) Adjusted net income, a non-GAAP measure, excludes non-recurring items such as terminated merger-related expenses, tradename write-offs, and ATM disposal costs to present a clearer view of core operational profitability Adjusted Net Income Reconciliation | Metric | March 31, 2025 ($ in thousands) | December 31, 2024 ($ in thousands) | September 30, 2024 ($ in thousands) | June 30, 2024 ($ in thousands) | March 31, 2024 ($ in thousands) | | :-------------------------------- | :------------------------------ | :------------------------------- | :-------------------------------- | :----------------------------- | :------------------------------ | | Net income (GAAP) | 23,569 | 16,350 | 22,422 | 24,560 | 12,296 | | Total adjustments, net of tax | — | 7,966 | 1,233 | 621 | 2,296 | | Adjusted net income (non-GAAP) | 23,569 | 24,316 | 23,655 | 25,181 | 14,592 | [Adjusted Diluted Earnings Per Share](index=15&type=section&id=Adjusted%20Diluted%20Earnings%20Per%20Share) Adjusted diluted EPS, a non-GAAP measure, removes the per-share impact of non-recurring adjustments to provide a more representative measure of earnings from ongoing operations Adjusted Diluted EPS Reconciliation | Metric | March 31, 2025 ($) | December 31, 2024 ($) | September 30, 2024 ($) | June 30, 2024 ($) | March 31, 2024 ($) | | :-------------------------------- | :----------------- | :-------------------- | :--------------------- | :---------------- | :----------------- | | Diluted earnings per share (GAAP) | 0.83 | 0.58 | 0.79 | 0.88 | 0.45 | | Impact of non-recurring adjustments | — | 0.28 | 0.05 | 0.02 | 0.08 | | Adjusted diluted earnings per share (non-GAAP) | 0.83 | 0.86 | 0.84 | 0.90 | 0.53 | [Adjusted Return on Average Total Assets](index=15&type=section&id=Adjusted%20Return%20on%20Average%20Total%20Assets) This non-GAAP measure adjusts the return on average total assets by excluding the impact of non-recurring items, offering a normalized view of asset utilization efficiency Adjusted ROAA Reconciliation | Metric | March 31, 2025 | December 31, 2024 | September 30, 2024 | June 30, 2024 | March 31, 2024 | | :-------------------------------- | :------------- | :---------------- | :----------------- | :------------ | :------------- | | Return on average total assets (GAAP) | 1.20 % | 0.81 % | 1.12 % | 1.27 % | 0.65 % | | Impact of non-recurring adjustments | — % | 0.39 % | 0.06 % | 0.03 % | 0.12 % | | Adjusted ROAA (non-GAAP) | 1.20 % | 1.20 % | 1.18 % | 1.30 % | 0.77 % | [Adjusted Return on Average Stockholders' Equity](index=15&type=section&id=Adjusted%20Return%20on%20Average%20Stockholders%27%20Equity) This non-GAAP metric adjusts the return on average stockholders' equity by removing the effects of non-recurring items, providing a clearer indication of the profitability generated from shareholders' investments in core operations Adjusted ROACE Reconciliation | Metric | March 31, 2025 | December 31, 2024 | September 30, 2024 | June 30, 2024 | March 31, 2024 | | :-------------------------------- | :------------- | :---------------- | :----------------- | :------------ | :------------- | | Return on average stockholders' equity (GAAP) | 9.03 % | 6.22 % | 8.74 % | 10.08 % | 5.18 % | | Impact of non-recurring adjustments | — % | 3.02 % | 0.48 % | 0.26 % | 0.96 % | | Adjusted ROACE (non-GAAP) | 9.03 % | 9.24 % | 9.22 % | 10.34 % | 6.14 % | [Return on Average Tangible Stockholders' Equity](index=15&type=section&id=Return%20on%20Average%20Tangible%20Stockholders%27%20Equity) This non-GAAP measure calculates the return on average tangible stockholders' equity by adjusting GAAP equity for goodwill and other intangible assets, offering a more conservative view of profitability relative to tangible capital ROATCE Reconciliation | Metric | March 31, 2025 | December 31, 2024 | September 30, 2024 | June 30, 2024 | March 31, 2024 | | :-------------------------------- | :------------- | :---------------- | :----------------- | :------------ | :------------- | | Return on average stockholders' equity (GAAP) | 9.03 % | 6.22 % | 8.74 % | 10.08 % | 5.18 % | | Impact from goodwill and other intangible assets | 1.15 % | 1.14 % | 1.20 % | 1.43 % | 0.93 % | | Return on average tangible stockholders' equity (non-GAAP) | 10.18 % | 7.36 % | 9.94 % | 11.51 % | 6.11 % | [Adjusted Return on Average Tangible Stockholders' Equity](index=15&type=section&id=Adjusted%20Return%20on%20Average%20Tangible%20Stockholders%27%20Equity) This non-GAAP metric further refines the return on average tangible stockholders' equity by excluding non-recurring adjustments, providing the most normalized view of profitability relative to tangible capital from core operations Adjusted ROATCE Reconciliation | Metric | March 31, 2025 | December 31, 2024 | September 30, 2024 | June 30, 2024 | March 31, 2024 | | :-------------------------------- | :------------- | :---------------- | :----------------- | :------------ | :------------- | | Return on average tangible stockholders' equity (non-GAAP) | 10.18 % | 7.36 % | 9.94 % | 11.51 % | 6.11 % | | Impact of non-recurring adjustments | — % | 3.36 % | 0.54 % | 0.28 % | 1.09 % | | Adjusted ROATCE (non-GAAP) | 10.18 % | 10.72 % | 10.48 % | 11.79 % | 7.20 % | [Adjusted Total Noninterest Expense](index=16&type=section&id=Adjusted%20Total%20Noninterest%20Expense) Adjusted total noninterest expense, a non-GAAP measure, removes specific non-recurring expenses to provide a clearer picture of the company's ongoing operational costs Adjusted Noninterest Expense Reconciliation | Metric | March 31, 2025 ($ in thousands) | December 31, 2024 ($ in thousands) | September 30, 2024 ($ in thousands) | June 30, 2024 ($ in thousands) | March 31, 2024 ($ in thousands) | | :-------------------------------- | :------------------------------ | :------------------------------- | :-------------------------------- | :----------------------------- | :------------------------------ | | Total noninterest expense (GAAP) | 62,722 | 73,673 | 64,664 | 63,875 | 61,828 | | Total adjustments | — | (10,880) | (1,633) | (1,046) | (2,489) | | Adjusted total noninterest expense (non-GAAP) | 62,722 | 62,793 | 63,031 | 62,829 | 59,339 | [Adjusted Efficiency Ratio](index=16&type=section&id=Adjusted%20Efficiency%20Ratio) The adjusted efficiency ratio, a non-GAAP measure, excludes the impact of non-recurring adjustments from the GAAP efficiency ratio, offering a more accurate representation of the company's operational efficiency in its core business Adjusted Efficiency Ratio Reconciliation | Metric | March 31, 2025 | December 31, 2024 | September 30, 2024 | June 30, 2024 | March 31, 2024 | | :-------------------------------- | :------------- | :---------------- | :----------------- | :------------ | :------------- | | Efficiency ratio (GAAP) | 65.19 % | 74.66 % | 65.83 % | 66.42 % | 66.05 % | | Impact of non-recurring adjustments | — % | (11.03)% | (1.67)% | (1.09)% | (2.66)% | | Adjusted efficiency ratio (non-GAAP) | 65.19 % | 63.63 % | 64.16 % | 65.33 % | 63.39 % | [Fully Tax Equivalent ("FTE") Net Interest Income and Net Interest Margin](index=16&type=section&id=Fully%20Tax%20Equivalent%20%28%22FTE%22%29%20Net%20Interest%20Income%20and%20Net%20Interest%20Margin) This non-GAAP reconciliation adjusts net interest income and net interest margin to a fully tax-equivalent basis, allowing for a more consistent comparison of interest income from taxable and tax-exempt sources FTE Net Interest Income and Margin Reconciliation | Metric | March 31, 2025 ($ in thousands) | December 31, 2024 ($ in thousands) | September 30, 2024 ($ in thousands) | June 30, 2024 ($ in thousands) | March 31, 2024 ($ in thousands) | | :-------------------------------- | :------------------------------ | :------------------------------- | :-------------------------------- | :----------------------------- | :------------------------------ | | Net interest income (GAAP) | 74,478 | 77,047 | 76,158 | 72,899 | 70,806 | | Gross income effect of tax exempt income | 1,192 | 1,161 | 1,132 | 1,156 | 1,318 | | FTE net interest income (non-GAAP) | 75,670 | 78,208 | 77,290 | 74,055 | 72,124 | | Net interest margin (GAAP) | 4.07 % | 4.09 % | 4.08 % | 4.04 % | 4.01 % | | Net interest margin on FTE basis (non-GAAP) | 4.13 % | 4.15 % | 4.13 % | 4.10 % | 4.08 % | [Contacts](index=16&type=section&id=Contacts) This section provides contact information for investor relations and media inquiries for FirstSun Capital Bancorp and Sunflower Bank [Contact Information](index=16&type=section&id=Contact%20Information) This section provides contact information for investor relations and media inquiries for FirstSun Capital Bancorp and Sunflower Bank - Investor Contact: Ed Jacques, Director of Investor Relations & Business Development, FirstSun (Investor.Relations@firstsuncb.com)[42](index=42&type=chunk) - Media Contact: Jeanne Lipson, Director of Marketing, Sunflower Bank (Jeanne.Lipson@SunflowerBank.com)[42](index=42&type=chunk)

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]

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].