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

[Executive Summary & Highlights](index=1&type=section&id=Executive%20Summary%20%26%20Highlights) This section provides an overview of FirstSun Capital Bancorp's strong Q2 2025 financial performance, including key metrics and CEO commentary on strategic drivers [Second Quarter 2025 Highlights](index=1&type=section&id=Second%20Quarter%202025%20Highlights) FirstSun Capital Bancorp reported strong financial results for Q2 2025, with net income increasing to $26.4 million and diluted EPS rising to $0.93. Key performance indicators included a stable net interest margin, significant deposit growth, and an improved noninterest income mix Second Quarter 2025 Highlights | Metric | Q2 2025 | Q2 2024 | | :-------------------------------- | :------ | :------ | | Net Income | $26.4 million | $24.6 million | | Earnings per Diluted Share | $0.93 | $0.88 | | Adjusted Net Income (non-GAAP) | N/A | $25.2 million | | Adjusted Diluted EPS (non-GAAP) | N/A | $0.90 | | Net Interest Margin | 4.07% | N/A | | Return on Average Total Assets | 1.28% | N/A | | Return on Average Stockholders' Equity | 9.74% | N/A | | Deposit Growth (annualized) | 13.2% | N/A | | Loan Growth (annualized) | 1.4% | N/A | | Noninterest Income to Total Revenue | 25.6% | N/A | [CEO Commentary](index=1&type=section&id=CEO%20Commentary) Neal Arnold, CEO and President, highlighted the success of FirstSun's relationship-focused business model, diversified business mix, and strategic execution, leading to exceptional deposit growth and stable net interest margin. Despite higher credit costs, the company remains focused on credit administration and responsible business growth in its southwestern and western markets - The company's strong Q2 2025 results are attributed to its relationship-focused business model, diversified business mix, and execution of core strategic initiatives[3](index=3&type=chunk) - Performance was highlighted by **exceptional deposit growth**, a **stable net interest margin**, and an increase in service fees to revenue mix to **25.6%**[3](index=3&type=chunk) - Despite higher credit costs in a challenging banking environment, the company continues to focus diligently on credit administration and responsible business growth[3](index=3&type=chunk) [Financial Performance Overview](index=1&type=section&id=Financial%20Performance%20Overview) This section details FirstSun Capital Bancorp's Q2 2025 financial results, covering net income, net interest income, noninterest income, noninterest expense, and effective tax rate [Net Income and Earnings Per Share](index=1&type=section&id=Net%20Income%20and%20Earnings%20Per%20Share) FirstSun Capital Bancorp reported an increase in net income and diluted earnings per share for Q2 2025 compared to both the prior quarter and the same quarter last year, reflecting improved profitability metrics Net Income and Earnings Per Share | Metric | Q2 2025 | Q1 2025 | Q2 2024 | | :------------------------- | :------ | :------ | :------ | | Net Income | $26.4 million | $23.6 million | $24.6 million | | Diluted EPS | $0.93 | $0.83 | $0.88 | | Return on Average Total Assets | 1.28% | 1.20% | 1.27% | | Return on Average Stockholders' Equity | 9.74% | 9.03% | 10.08% | [Net Interest Income and Net Interest Margin](index=1&type=section&id=Net%20Interest%20Income%20and%20Net%20Interest%20Margin) Net interest income increased in Q2 2025 compared to the prior quarter, while the net interest margin remained stable. This was driven by an increase in the yield on earning assets, offset by a rise in the cost of interest-bearing liabilities Net Interest Income and Net Interest Margin | Metric | Q2 2025 | Q1 2025 | Change (QoQ) | | :-------------------- | :------ | :------ | :----------- | | Net Interest Income | $78.5 million | $74.5 million | +$4.0 million | | Net Interest Margin | 4.07% | 4.07% | Unchanged | | Yield on Earning Assets | +4 bps | N/A | +4 bps | | Cost of Interest-Bearing Liabilities | +4 bps | N/A | +4 bps | | Loan Yield | 6.43% | N/A | +7 bps | | Cost of Interest-Bearing Deposits | 2.78% | N/A | +5 bps | - The increase in loan yield was primarily due to higher yields on new originations compared to amortizing and maturing balances[7](index=7&type=chunk) - The increase in the cost of interest-bearing deposits was primarily due to an increase in promotional rate money market deposits[7](index=7&type=chunk) [Noninterest Income](index=2&type=section&id=Noninterest%20Income) Noninterest income saw a significant increase in Q2 2025, primarily driven by higher mortgage banking income and an increase in the fair value of investments related to the deferred compensation plan Noninterest Income | Metric | Q2 2025 | Q1 2025 | Change (QoQ) | | :-------------------------------- | :------ | :------ | :----------- | | Total Noninterest Income | $27.1 million | $21.7 million | +$5.3 million | | Mortgage Banking Income | +$4.2 million | N/A | +$4.2 million | | Other Noninterest Income | +$0.8 million | N/A | +$0.8 million | | Noninterest Income to Total Revenue | 25.6% | 22.6% | +3.0% | - Mortgage banking income increased due to higher MSR capitalization and gain on sales, driven by seasonally higher mortgage loans sold[11](index=11&type=chunk) - Other noninterest income increased due to an increase in the fair value of investments related to the deferred compensation plan[12](index=12&type=chunk) [Noninterest Expense](index=2&type=section&id=Noninterest%20Expense) Noninterest expense increased in Q2 2025, mainly due to higher salary and employee benefits, which were influenced by variable compensation and deferred compensation plan investment fair value changes. Despite this, the efficiency ratio improved Noninterest Expense | Metric | Q2 2025 | Q1 2025 | Change (QoQ) | | :-------------------------- | :------ | :------ | :----------- | | Total Noninterest Expense | $68.1 million | $62.7 million | +$5.4 million | | Salary and Employee Benefits | +$4.4 million | N/A | +$4.4 million | | Efficiency Ratio | 64.52% | 65.19% | -0.67% | - The increase in salary and employee benefits was a result of higher levels of variable compensation and an increase in the fair value of investments related to the deferred compensation plan[12](index=12&type=chunk) [Tax Rate](index=2&type=section&id=Tax%20Rate) The effective tax rate for Q2 2025 slightly decreased compared to the prior quarter Tax Rate | Metric | Q2 2025 | Q1 2025 | | :--------------- | :------ | :------ | | Effective Tax Rate | 20.0% | 20.6% | [Asset Quality and Credit Losses](index=2&type=section&id=Asset%20Quality%20and%20Credit%20Losses) This section analyzes FirstSun Capital Bancorp's asset quality in Q2 2025, focusing on provisions for credit losses, net charge-offs, and nonperforming assets [Provision for Credit Losses](index=2&type=section&id=Provision%20for%20Credit%20Losses) The provision for credit losses increased in Q2 2025, primarily due to deterioration in specific commercial and industrial (C&I) customer relationships and net portfolio downgrades, partially offset by changes in loan portfolio balances Provision for Credit Losses | Metric | Q2 2025 | Q1 2025 | | :------------------------ | :------ | :------ | | Provision for Credit Losses | $4.5 million | $3.8 million | - The increase was primarily due to deterioration in a couple of commercial and industrial ("C&I") customer relationships and impacts from net portfolio downgrades[8](index=8&type=chunk) [Net Charge-offs](index=2&type=section&id=Net%2DCharge%2Doffs) Net charge-offs were significantly elevated in Q2 2025 compared to the prior quarter, mainly due to a specific write-down in the C&I loan portfolio Net Charge-offs | Metric | Q2 2025 | Q1 2025 | | :------------------------------------ | :------ | :------ | | Net Charge-offs | $13.5 million | $0.6 million | | Annualized Ratio of Net Charge-offs to Average Loans | 0.83% | 0.04% | - The elevated net charge-offs were primarily due to a write-down related to a specific customer relationship in the C&I loan portfolio[9](index=9&type=chunk) [Allowance for Credit Losses & Nonperforming Assets](index=2&type=section&id=Allowance%20for%20Credit%20Losses%20%26%20Nonperforming%20Assets) The allowance for credit losses as a percentage of total loans decreased, while the ratio of nonperforming assets to total assets improved in Q2 2025 Allowance for Credit Losses & Nonperforming Assets | Metric | June 30, 2025 | March 31, 2025 | | :------------------------------------ | :------------ | :------------- | | Allowance for Credit Losses to Total Loans | 1.28% | 1.42% | | Nonperforming Assets to Total Assets | 0.80% | 1.02% | [Balance Sheet Dynamics](index=3&type=section&id=Balance%20Sheet%20Dynamics) This section examines FirstSun Capital Bancorp's balance sheet trends in Q2 2025, including changes in loans, deposits, and capital ratios [Loans](index=3&type=section&id=Loans) Total loans experienced modest annualized growth in Q2 2025, driven by increases in residential real estate and commercial and industrial loans, partially offset by a decrease in public finance Loans | Metric | June 30, 2025 | March 31, 2025 | Change (QoQ) | | :------------------------------------ | :------------ | :------------- | :----------- | | Total Loans | $6.5 billion | $6.5 billion | +$23.1 million | | Annualized Loan Growth | 1.4% | N/A | N/A | | Residential Real Estate Increase | +$31.0 million | N/A | N/A | | Commercial and Industrial Increase | +$16.6 million | N/A | N/A | | Public Finance Decrease | -$26.8 million | N/A | N/A | [Deposits](index=3&type=section&id=Deposits) Deposits showed strong annualized growth in Q2 2025, primarily from savings and money market accounts and noninterest-bearing demand deposits, despite a decrease in certificates of deposits. Noninterest-bearing deposits constituted a significant portion of total deposits Deposits | Metric | June 30, 2025 | March 31, 2025 | Change (QoQ) | | :------------------------------------ | :------------ | :------------- | :----------- | | Total Deposits | $7.1 billion | $6.9 billion | +$225.9 million | | Annualized Deposit Growth | 13.2% | N/A | N/A | | Savings and Money Market Accounts Increase | +$191.7 million | N/A | N/A | | Noninterest-Bearing Demand Deposit Accounts Increase | +$131.9 million | N/A | N/A | | Certificates of Deposits Decrease | -$146.9 million | N/A | N/A | | Noninterest-Bearing Deposits to Total Deposits | 24.0% | N/A | N/A | | Loan-to-Deposit Ratio | 91.6% | N/A | N/A | [Capital](index=3&type=section&id=Capital) FirstSun's capital ratios remained strong and above 'well-capitalized' thresholds at the end of Q2 2025, with increases in book value and tangible book value per share Capital | Metric | June 30, 2025 | March 31, 2025 | Change (QoQ) | | :------------------------------------ | :------------ | :------------- | :----------- | | Common Equity Tier 1 Risk-Based Capital Ratio | 13.78% | 13.26% | +0.52% | | Total Risk-Based Capital Ratio | 15.94% | 15.52% | +0.42% | | Tier 1 Leverage Ratio | 12.39% | 12.47% | -0.08% | | Book Value Per Share | $39.35 | $38.49 | +$0.86 | | Tangible Book Value Per Share (non-GAAP) | $35.77 | $34.88 | +$0.89 | [Company Information](index=4&type=section&id=Company%20Information) This section provides background information on FirstSun Capital Bancorp, its operations, and the day-count convention used in financial 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 as Sunflower Bank and First National 1870. It provides a full range of financial services across seven states with mortgage capabilities in 43 states, reporting total consolidated assets of $8.4 billion as of June 30, 2025 - FirstSun Capital Bancorp is headquartered in Denver, Colorado, and is the financial holding company for Sunflower Bank, N.A[22](index=22&type=chunk) - Sunflower Bank operates as Sunflower Bank and First National 1870, offering relationship-focused personal, business, and wealth management financial objectives[22](index=22&type=chunk) - The bank has depository branches in seven states and mortgage capabilities in 43 states[22](index=22&type=chunk) Total Consolidated Assets | Metric | June 30, 2025 | | :----------- | :------------ | | Total Consolidated Assets | $8.4 billion | [Day-Count Convention](index=4&type=section&id=Day%2DCount%20Convention) Annualized ratios in the report are presented using the Actual/Actual day-count convention, with prior period ratios recalculated for consistency - Annualized ratios are presented utilizing the Actual/Actual day-count convention[23](index=23&type=chunk) - Prior period annualized ratios have been recalculated to conform to the current presentation[23](index=23&type=chunk) [Non-GAAP Financial Measures](index=4&type=section&id=Non%2DGAAP%20Financial%20Measures) This section explains FirstSun Capital Bancorp's use of non-GAAP financial measures and provides reconciliations to their most comparable GAAP equivalents [Non-GAAP Financial Measures Explanation](index=4&type=section&id=Non%2DGAAP%20Financial%20Measures%20Explanation) FirstSun management uses non-GAAP financial measures to analyze performance, enhance comparability, and demonstrate the effects of significant items. These measures are not substitutes for GAAP but are considered useful for investors, with reconciliations provided in the report - FirstSun management uses non-GAAP financial measures to analyze performance, efficiency, understand ongoing operations, enhance comparability, and demonstrate effects of significant items[20](index=20&type=chunk) - These non-GAAP 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 of each non-GAAP financial measure to the most comparable GAAP equivalent are provided in tables starting on page 16[21](index=21&type=chunk) - Tangible stockholders' equity to tangible assets - Tangible book value per share - Adjusted net income - Adjusted diluted earnings per share - Adjusted return on average total assets - Adjusted return on average stockholders' equity - Return on average tangible stockholders' equity - Adjusted return on average tangible stockholders' equity - Adjusted total noninterest expense - Adjusted efficiency ratio - Fully tax equivalent ("FTE") net interest income and net interest margin [Financial Tables - Summary Data](index=5&type=section&id=Financial%20Tables%20-%20Summary%20Data) This section presents summarized quarterly and year-to-date financial data, offering a concise overview of key performance indicators and balance sheet items [Quarterly Summary Data](index=5&type=section&id=Quarterly%20Summary%20Data) This section provides a summary of key financial metrics for the past five quarters, highlighting trends in net income, EPS, profitability ratios, and balance sheet items Quarterly Summary Data ($ in thousands, except per share amounts) | Metric | June 30, 2025 | March 31, 2025 | December 31, 2024 | September 30, 2024 | June 30, 2024 | | :------------------------------------ | :------------ | :------------- | :---------------- | :----------------- | :------------ | | Net interest income | $78,499 | $74,478 | $77,047 | $76,158 | $72,899 | | Provision for credit losses | $4,500 | $3,800 | $4,850 | $5,000 | $1,200 | | Noninterest income | $27,073 | $21,729 | $21,635 | $22,075 | $23,274 | | Noninterest expense | $68,110 | $62,722 | $73,673 | $64,664 | $63,875 | | Net income | $26,386 | $23,569 | $16,350 | $22,422 | $24,560 | | Diluted earnings per share | $0.93 | $0.83 | $0.58 | $0.79 | $0.88 | | Return on average total assets | 1.28 % | 1.20 % | 0.81 % | 1.12 % | 1.27 % | | Net interest margin | 4.07 % | 4.07 % | 4.09 % | 4.08 % | 4.04 % | | Efficiency ratio | 64.52 % | 65.19 % | 74.66 % | 65.83 % | 66.42 % | | Total assets | $8,435,861 | $8,216,458 | $8,097,387 | $8,138,487 | $7,999,295 | | Total deposits | $7,100,164 | $6,874,239 | $6,672,260 | $6,649,880 | $6,619,525 | | Total stockholders' equity | $1,095,402 | $1,068,295 | $1,041,366 | $1,034,085 | $996,599 | | Book value per share | $39.35 | $38.49 | $37.58 | $37.38 | $36.31 | [Year-to-Date Summary Data](index=6&type=section&id=Year%2Dto%2DDate%20Summary%20Data) This section presents a comparative summary of key financial metrics for the six months ended June 30, 2025, versus the same period in 2024, showing improvements in net income, EPS, and profitability Year-to-Date Summary Data ($ in thousands, except per share amounts) | Metric | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :------------------------------------ | :----------------------------- | :----------------------------- | | Net interest income | $152,977 | $143,705 | | Provision for credit losses | $8,300 | $17,700 | | Noninterest income | $48,802 | $46,082 | | Noninterest expense | $130,832 | $125,703 | | Net income | $49,955 | $36,856 | | Diluted earnings per share | $1.77 | $1.32 | | Return on average total assets | 1.24 % | 0.96 % | | Net interest margin | 4.07 % | 4.03 % | | Efficiency ratio | 64.84 % | 66.23 % | | Total assets | $8,435,861 | $7,999,295 | | Total deposits | $7,100,164 | $6,619,525 | | Total stockholders' equity | $1,095,402 | $996,599 | | Book value per share | $39.35 | $36.31 | [Financial Tables - Consolidated Statements of Income](index=7&type=section&id=Financial%20Tables%20-%20Consolidated%20Statements%20of%20Income) This section provides detailed consolidated statements of income, showing quarterly and year-to-date trends in revenue and expense components [Quarterly and Year-to-Date Income Statements](index=7&type=section&id=Quarterly%20and%20Year%2Dto%2DDate%20Income%20Statements) This table provides a detailed breakdown of the consolidated statements of income for the three and six months ended June 30, 2025, and 2024, showing year-over-year changes in interest income, interest expense, noninterest income, and expenses Quarterly and Year-to-Date Income Statements ($ in thousands, except per share amounts) | ($ in thousands, except per share amounts) | For the three months ended June 30, 2025 | For the three months ended June 30, 2024 | For the six months ended June 30, 2025 | For the six months ended June 30, 2024 | | :----------------------------------------- | :--------------------------------------- | :--------------------------------------- | :------------------------------------- | :------------------------------------- | | Total interest income | $116,921 | $114,529 | $227,368 | $224,569 | | Total interest expense | $38,422 | $41,630 | $74,391 | $80,864 | | Net interest income | $78,499 | $72,899 | $152,977 | $143,705 | | Provision for credit losses | $4,500 | $1,200 | $8,300 | $17,700 | | Total noninterest income | $27,073 | $23,274 | $48,802 | $46,082 | | Total noninterest expense | $68,110 | $63,875 | $130,832 | $125,703 | | Net income | $26,386 | $24,560 | $49,955 | $36,856 | | Diluted earnings per share | $0.93 | $0.88 | $1.77 | $1.32 | [Quarterly Income Statement Trend](index=8&type=section&id=Quarterly%20Income%20Statement%20Trend) This table provides a quarterly trend of the consolidated statements of income over the past five quarters, illustrating the progression of key revenue and expense components Quarterly Income Statement Trend ($ in thousands, except per share amounts) | ($ in thousands, except per share amounts) | June 30, 2025 | March 31, 2025 | December 31, 2024 | September 30, 2024 | June 30, 2024 | | :----------------------------------------- | :------------ | :------------- | :---------------- | :----------------- | :------------ | | Total interest income | $116,921 | $110,447 | $116,039 | $118,932 | $114,529 | | Total interest expense | $38,422 | $35,969 | $38,992 | $42,774 | $41,630 | | Net interest income | $78,499 | $74,478 | $77,047 | $76,158 | $72,899 | | Provision for credit losses | $4,500 | $3,800 | $4,850 | $5,000 | $1,200 | | Total noninterest income | $27,073 | $21,729 | $21,635 | $22,075 | $23,274 | | Total noninterest expense | $68,110 | $62,722 | $73,673 | $64,664 | $63,875 | | Net income | $26,386 | $23,569 | $16,350 | $22,422 | $24,560 | | Diluted earnings per share | $0.93 | $0.83 | $0.58 | $0.79 | $0.88 | [Financial Tables - Consolidated Balance Sheets](index=9&type=section&id=Financial%20Tables%20-%20Consolidated%20Balance%20Sheets) This section presents consolidated balance sheets over five quarters, detailing trends in assets, liabilities, and stockholders' equity [Balance Sheet Trend](index=9&type=section&id=Balance%20Sheet%20Trend) This table presents the consolidated balance sheets for the past five quarters, showing trends in assets, liabilities, and stockholders' equity, including detailed breakdowns of loans and deposits Balance Sheet Trend ($ in thousands) | ($ in thousands) | June 30, 2025 | March 31, 2025 | December 31, 2024 | September 30, 2024 | June 30, 2024 | | :------------------------------------ | :------------ | :------------- | :---------------- | :----------------- | :------------ | | Cash and cash equivalents | $785,115 | $621,377 | $615,917 | $573,674 | $535,766 | | Loans, net | $6,424,073 | $6,392,218 | $6,288,136 | $6,360,597 | $6,258,202 | | Total assets | $8,435,861 | $8,216,458 | $8,097,387 | $8,138,487 | $7,999,295 | | Noninterest-bearing accounts (deposits) | $1,706,678 | $1,574,736 | $1,541,158 | $1,554,762 | $1,562,308 | | Total deposits | $7,100,164 | $6,874,239 | $6,672,260 | $6,649,880 | $6,619,525 | | Total liabilities | $7,340,459 | $7,148,163 | $7,056,021 | $7,104,402 | $7,002,696 | | Total stockholders' equity | $1,095,402 | $1,068,295 | $1,041,366 | $1,034,085 | $996,599 | [Financial Tables - Capital Ratios](index=10&type=section&id=Financial%20Tables%20-%20Capital%20Ratios) This section outlines the company's consolidated capital ratios over five quarters, demonstrating its regulatory capital position [Consolidated Capital Ratios Trend](index=10&type=section&id=Consolidated%20Capital%20Ratios%20Trend) This table provides a quarterly trend of consolidated capital ratios, demonstrating the company's strong capital position relative to regulatory thresholds Consolidated Capital Ratios Trend | Metric | June 30, 2025 | March 31, 2025 | December 31, 2024 | September 30, 2024 | June 30, 2024 | | :-------------------------------------------------------------------------------- | :------------ | :------------- | :---------------- | :----------------- | :------------ | | Stockholders' equity to total assets | 12.99 % | 13.00 % | 12.86 % | 12.71 % | 12.46 % | | Tangible stockholders' equity to tangible assets | 11.94 % | 11.93 % | 11.76 % | 11.59 % | 11.32 % | | Tier 1 leverage ratio | 12.39 % | 12.47 % | 12.11 % | 11.96 % | 11.83 % | | Common equity tier 1 risk-based capital ratio | 13.78 % | 13.26 % | 13.18 % | 13.06 % | 12.80 % | | Total risk-based capital ratio | 15.94 % | 15.52 % | 15.42 % | 15.25 % | 14.95 % | [Financial Tables - Net Interest Margin Analysis](index=11&type=section&id=Financial%20Tables%20-%20Net%20Interest%20Margin%20Analysis) This section offers a detailed analysis of net interest margin, including average balances and yields for interest-earning assets and liabilities [Net Interest Margin Summary (QoQ and YTD)](index=11&type=section&id=Net%20Interest%20Margin%20Summary%20%28QoQ%20and%20YTD%29) This table provides a summary of net interest margin, average balances, and yields/rates for interest-earning assets and interest-bearing liabilities for the three and six months ended June 30, 2025, and 2024 Net Interest Margin Summary (QoQ and YTD) (In thousands) | (In thousands) | June 30, 2025 (3 months) Avg Balance | June 30, 2025 (3 months) Avg Yield/Rate | June 30, 2024 (3 months) Avg Balance | June 30, 2024 (3 months) Avg Yield/Rate | June 30, 2025 (6 months) Avg Balance | June 30, 2025 (6 months) Avg Yield/Rate | June 30, 2024 (6 months) Avg Balance | June 30, 2024 (6 months) Avg Yield/Rate | | :------------------------------------ | :------------------------------------ | :------------------------------------ | :------------------------------------ | :------------------------------------ | :------------------------------------ | :------------------------------------ | :------------------------------------ | :------------------------------------ | | Total earning assets | $7,727,556 | 6.07 % | $7,256,763 | 6.35 % | $7,576,307 | 6.05 % | $7,178,543 | 6.29 % | | Total interest-bearing liabilities | $5,445,488 | 2.83 % | $5,173,959 | 3.24 % | $5,336,292 | 2.81 % | $5,115,352 | 3.18 % | | Net interest spread | N/A | 3.24 % | N/A | 3.11 % | N/A | 3.24 % | N/A | 3.11 % | | Net interest margin | N/A | 4.07 % | N/A | 4.04 % | N/A | 4.07 % | N/A | 4.03 % | [Net Interest Margin Trend (QoQ)](index=12&type=section&id=Net%20Interest%20Margin%20Trend%20%28QoQ%29) This table details the quarterly trend of net interest margin, average balances, and yields/rates for interest-earning assets and interest-bearing liabilities over the past five quarters Net Interest Margin Trend (QoQ) (In thousands) | (In thousands) | June 30, 2025 Avg Balance | June 30, 2025 Avg Yield/Rate | March 31, 2025 Avg Balance | March 31, 2025 Avg Yield/Rate | December 31, 2024 Avg Balance | December 31, 2024 Avg Yield/Rate | September 30, 2024 Avg Balance | September 30, 2024 Avg Yield/Rate | June 30, 2024 Avg Balance | June 30, 2024 Avg Yield/Rate | | :------------------------------------ | :-------------------------- | :-------------------------- | :-------------------------- | :-------------------------- | :-------------------------- | :-------------------------- | :-------------------------- | :-------------------------- | :-------------------------- | :-------------------------- | | Total earning assets | $7,727,556 | 6.07 % | $7,423,376 | 6.03 % | $7,492,248 | 6.16 % | $7,430,357 | 6.37 % | $7,256,763 | 6.35 % | | Total interest-bearing liabilities | $5,445,488 | 2.83 % | $5,225,883 | 2.79 % | $5,254,597 | 2.95 % | $5,234,940 | 3.25 % | $5,173,959 | 3.24 % | | Net interest spread | N/A | 3.24 % | N/A | 3.24 % | N/A | 3.21 % | N/A | 3.12 % | N/A | 3.11 % | | Net interest margin | N/A | 4.07 % | N/A | 4.07 % | N/A | 4.09 % | N/A | 4.08 % | N/A | 4.04 % | [Financial Tables - Deposits and Loan Portfolio](index=13&type=section&id=Financial%20Tables%20-%20Deposits%20and%20Loan%20Portfolio) This section provides detailed breakdowns of deposits by type and the loan portfolio by category, illustrating asset and liability composition [Deposits by Type](index=13&type=section&id=Deposits%20by%20Type) This table provides a quarterly breakdown of deposits by consumer, business, and wholesale categories, showing trends in noninterest-bearing and various interest-bearing accounts Deposits by Type ($ in thousands) | ($ in thousands) | June 30, 2025 | March 31, 2025 | December 31, 2024 | September 30, 2024 | June 30, 2024 | | :------------------------------------ | :------------ | :------------- | :---------------- | :----------------- | :------------ | | Total consumer deposits | $3,603,783 | $3,503,150 | $3,385,487 | $3,372,454 | $3,474,586 | | Total business deposits | $3,061,485 | $2,926,208 | $2,842,033 | $2,787,532 | $2,703,061 | | Wholesale deposits | $434,896 | $444,881 | $444,740 | $489,894 | $441,878 | | Total deposits | $7,100,164 | $6,874,239 | $6,672,260 | $6,649,880 | $6,619,525 | [Balance Sheet Ratios](index=13&type=section&id=Balance%20Sheet%20Ratios) This table presents key balance sheet ratios over the past five quarters, including cash to total assets, loan to deposit ratio, and uninsured deposit metrics Balance Sheet Ratios | Metric | June 30, 2025 | March 31, 2025 | December 31, 2024 | September 30, 2024 | June 30, 2024 | | :------------------------------------ | :------------ | :------------- | :---------------- | :----------------- | :------------ | | Cash to total assets | 9.20 % | 7.50 % | 7.50 % | 6.90 % | 6.60 % | | Loan to deposit ratio | 91.6 % | 94.3 % | 95.6 % | 96.9 % | 95.7 % | | Uninsured deposits to total deposits | 37.0 % | 35.2 % | 34.8 % | 32.7 % | 32.1 % | | Uninsured and uncollateralized deposits to total deposits | 28.3 % | 26.4 % | 25.2 % | 26.8 % | 25.5 % | | Wholesale deposits and borrowings to total liabilities | 5.9 % | 6.7 % | 8.2 % | 9.9 % | 8.4 % | [Loan Portfolio by Type](index=14&type=section&id=Loan%20Portfolio%20by%20Type) This table provides a quarterly breakdown of the loan portfolio by various categories, including commercial and industrial, commercial real estate, residential real estate, and public finance Loan Portfolio by Type ($ in thousands) | ($ in thousands) | June 30, 2025 | March 31, 2025 | December 31, 2024 | September 30, 2024 | June 30, 2024 | | :------------------------------------ | :------------ | :------------- | :---------------- | :----------------- | :------------ | | Commercial and industrial | $2,651,646 | $2,635,028 | $2,497,772 | $2,527,636 | $2,431,110 | | Total commercial real estate | $1,886,358 | $1,884,381 | $1,912,666 | $1,950,577 | $1,972,608 | | Residential real estate | $1,226,760 | $1,195,714 | $1,180,610 | $1,172,459 | $1,146,989 | | Public Finance | $524,441 | $551,252 | $554,784 | $536,776 | $537,872 | | Total loans, net of deferred costs, fees, premiums, and discounts | $6,507,066 | $6,484,008 | $6,376,357 | $6,443,756 | $6,337,162 | [Financial Tables - Asset Quality](index=15&type=section&id=Financial%20Tables%20-%20Asset%20Quality) This section presents comprehensive asset quality metrics, including net charge-offs, allowance for credit losses, and nonperforming assets [Asset Quality Metrics](index=15&type=section&id=Asset%20Quality%20Metrics) This table provides a comprehensive overview of asset quality metrics for the past five quarters and year-to-date, including net charge-offs, allowance for credit losses, and nonperforming assets Asset Quality Metrics ($ in thousands) | ($ in thousands) | June 30, 2025 (3 months) | March 31, 2025 (3 months) | December 31, 2024 (3 months) | September 30, 2024 (3 months) | June 30, 2024 (3 months) | June 30, 2025 (6 months) | June 30, 2024 (6 months) | | :-------------------------------------------------------------------------------- | :----------------------- | :------------------------ | :--------------------------- | :--------------------------- | :----------------------- | :----------------------- | :----------------------- | | Net charge-offs (recoveries) | $13,547 | $631 | $(462) | $1,401 | $2,009 | $14,178 | $19,438 | | Allowance for credit losses | $82,993 | $91,790 | $88,221 | $83,159 | $78,960 | $82,993 | $78,960 | | Nonperforming loans | $54,841 | $78,590 | $69,050 | $65,824 | $62,558 | $54,841 | $62,558 | | Nonperforming assets | $67,893 | $83,504 | $74,188 | $70,302 | $67,055 | $67,893 | $67,055 | | Ratio of net charge-offs (recoveries) to average loans outstanding | 0.83 % | 0.04 % | (0.03)% | 0.09 % | 0.13 % | 0.44 % | 0.62 % | | Allowance for credit losses to total loans outstanding | 1.28 % | 1.42 % | 1.38 % | 1.29 % | 1.25 % | 1.28 % | 1.25 % | | Nonperforming loans to total loans | 0.84 % | 1.21 % | 1.08 % | 1.02 % | 0.99 % | 0.84 % | 0.99 % | | Nonperforming assets to total assets | 0.80 % | 1.02 % | 0.92 % | 0.86 % | 0.84 % | 0.80 % | 0.84 % | [Non-GAAP Financial Measures and Reconciliations](index=16&type=section&id=Non%2DGAAP%20Financial%20Measures%20and%20Reconciliations) This section provides detailed reconciliations of various non-GAAP financial measures to their GAAP equivalents, enhancing transparency [Tangible Stockholders' Equity to Tangible Assets](index=16&type=section&id=Tangible%20Stockholders%27%20Equity%20to%20Tangible%20Assets) This section provides the reconciliation of GAAP stockholders' equity and total assets to their tangible (non-GAAP) equivalents, and the resulting tangible stockholders' equity to tangible assets ratio, including adjustments for net unrealized losses on HTM securities Tangible Stockholders' Equity to Tangible Assets ($ in thousands) | ($ in thousands) | June 30, 2025 | March 31, 2025 | December 31, 2024 | September 30, 2024 | June 30, 2024 | | :-------------------------------------------------------------------------------- | :------------ | :------------- | :---------------- | :----------------- | :------------ | | Total stockholders' equity (GAAP) | $1,095,402 | $1,068,295 | $1,041,366 | $1,034,085 | $996,599 | | Less: Goodwill and other intangible assets | $(99,711) | $(100,289) | $(100,917) | $(102,349) | $(102,000) | | Tangible stockholders' equity (non-GAAP) | $995,691 | $968,006 | $940,449 | $931,736 | $893,599 | | Total assets (GAAP) | $8,435,861 | $8,216,458 | $8,097,387 | $8,138,487 | $7,999,295 | | Less: Goodwill and other intangible assets | $(99,711) | $(100,289) | $(100,917) | $(102,349) | $(102,000) | | Tangible assets (non-GAAP) | $8,336,150 | $8,116,169 | $7,996,470 | $8,036,138 | $7,896,295 | | Tangible stockholders' equity to tangible assets (non-GAAP) | 11.94 % | 11.93 % | 11.76 % | 11.59 % | 11.32 % | | Tangible stockholders' equity to tangible assets reflecting net unrealized losses on HTM securities, net of tax (non-GAAP) | 11.90 % | 11.89 % | 11.71 % | 11.56 % | 11.27 % | [Tangible Book Value Per Share](index=17&type=section&id=Tangible%20Book%20Value%20Per%20Share) This section reconciles GAAP book value per share to tangible book value per share (non-GAAP), adjusting for goodwill and other intangible assets Tangible Book Value Per Share ($ in thousands, except share and per share amounts) | ($ in thousands, except share and per share amounts) | June 30, 2025 | March 31, 2025 | December 31, 2024 | September 30, 2024 | June 30, 2024 | | :--------------------------------------------------- | :------------ | :------------- | :---------------- | :----------------- | :------------ | | Total stockholders' equity (GAAP) | $1,095,402 | $1,068,295 | $1,041,366 | $1,034,085 | $996,599 | | Tangible stockholders' equity (non-GAAP) | $995,691 | $968,006 | $940,449 | $931,736 | $893,599 | | Total shares outstanding | 27,834,525 | 27,753,918 | 27,709,679 | 27,665,918 | 27,443,246 | | Book value per share (GAAP) | $39.35 | $38.49 | $37.58 | $37.38 | $36.31 | | Tangible book value per share (non-GAAP) | $35.77 | $34.88 | $33.94 | $33.68 | $32.56 | [Adjusted Net Income and EPS](index=17&type=section&id=Adjusted%20Net%20Income%20and%20EPS) This section reconciles GAAP net income and diluted EPS to adjusted (non-GAAP) figures by adding back non-recurring adjustments such as terminated merger-related expenses, tradename write-offs, and ATM disposal costs, net of tax Adjusted Net Income and EPS ($ in thousands, except share and per share amounts) | ($ in thousands, except share and per share amounts) | June 30, 2025 | March 31, 2025 | December 31, 2024 | September 30, 2024 | June 30, 2024 | | :--------------------------------------------------- | :------------ | :------------- | :---------------- | :----------------- | :------------ | | Net income (GAAP) | $26,386 | $23,569 | $16,350 | $22,422 | $24,560 | | Total adjustments, net of tax | — | — | $7,966 | $1,233 | $621 | | Adjusted net income (non-GAAP) | $26,386 | $23,569 | $24,316 | $23,655 | $25,181 | | Diluted earnings per share (GAAP) | $0.93 | $0.83 | $0.58 | $0.79 | $0.88 | | Add: Impact of non-recurring adjustments | — | — | $0.28 | $0.05 | $0.02 | | Adjusted diluted earnings per share (non-GAAP) | $0.93 | $0.83 | $0.86 | $0.84 | $0.90 | [Adjusted Return on Average Total Assets](index=17&type=section&id=Adjusted%20Return%20on%20Average%20Total%20Assets) This section reconciles GAAP return on average total assets (ROAA) to adjusted (non-GAAP) ROAA by incorporating the impact of non-recurring adjustments, net of tax Adjusted Return on Average Total Assets ($ in thousands, except share and per share amounts) | ($ in thousands, except share and per share amounts) | June 30, 2025 | March 31, 2025 | December 31, 2024 | September 30, 2024 | June 30, 2024 | | :--------------------------------------------------- | :------------ | :------------- | :---------------- | :----------------- | :------------ | | Return on average total assets (ROAA) (GAAP) | 1.28 % | 1.20 % | 0.81 % | 1.12 % | 1.27 % | | Add: Impact of non-recurring adjustments | — % | — % | 0.39 % | 0.06 % | 0.03 % | | Adjusted ROAA (non-GAAP) | 1.28 % | 1.20 % | 1.20 % | 1.18 % | 1.30 % | [Adjusted Return on Average Stockholders' Equity](index=18&type=section&id=Adjusted%20Return%20on%20Average%20Stockholders%27%20Equity) This section reconciles GAAP return on average stockholders' equity (ROACE) to adjusted (non-GAAP) ROACE by accounting for non-recurring adjustments, net of tax Adjusted Return on Average Stockholders' Equity ($ in thousands, except share and per share amounts) | ($ in thousands, except share and per share amounts) | June 30, 2025 | March 31, 2025 | December 31, 2024 | September 30, 2024 | June 30, 2024 | | :--------------------------------------------------- | :------------ | :------------- | :---------------- | :----------------- | :------------ | | Return on average stockholders' equity (ROACE) (GAAP) | 9.74 % | 9.03 % | 6.22 % | 8.74 % | 10.08 % | | Add: Impact of non-recurring adjustments | — % | — % | 3.02 % | 0.48 % | 0.26 % | | Adjusted ROACE (non-GAAP) | 9.74 % | 9.03 % | 9.24 % | 9.22 % | 10.34 % | [Return on Average Tangible Stockholders' Equity](index=18&type=section&id=Return%20on%20Average%20Tangible%20Stockholders%27%20Equity) This section reconciles GAAP return on average stockholders' equity (ROACE) to return on average tangible stockholders' equity (ROATCE) (non-GAAP) by adjusting for goodwill and other intangible assets, and further to adjusted ROATCE by including non-recurring adjustments Return on Average Tangible Stockholders' Equity ($ in thousands, except share and per share amounts) | ($ in thousands, except share and per share amounts) | June 30, 2025 | March 31, 2025 | December 31, 2024 | September 30, 2024 | June 30, 2024 | | :--------------------------------------------------- | :------------ | :------------- | :---------------- | :----------------- | :------------ | | Return on average stockholders' equity (ROACE) (GAAP) | 9.74 % | 9.03 % | 6.22 % | 8.74 % | 10.08 % | | Add: Impact from goodwill and other intangible assets | 1.17 % | 1.15 % | 1.14 % | 1.20 % | 1.43 % | | Return on average tangible stockholders' equity (ROATCE) (non-GAAP) | 10.91 % | 10.18 % | 7.36 % | 9.94 % | 11.51 % | | Add: Impact of non-recurring adjustments | — % | — % | 3.36 % | 0.54 % | 0.28 % | | Adjusted ROATCE (non-GAAP) | 10.91 % | 10.18 % | 10.72 % | 10.48 % | 11.79 % | [Adjusted Total Noninterest Expense](index=19&type=section&id=Adjusted%20Total%20Noninterest%20Expense) This section reconciles GAAP total noninterest expense to adjusted (non-GAAP) total noninterest expense by subtracting non-recurring adjustments such as terminated merger-related expenses, tradename write-offs, and ATM disposal costs Adjusted Total Noninterest Expense ($ in thousands, except share and per share amounts) | ($ in thousands, except share and per share amounts) | June 30, 2025 | March 31, 2025 | December 31, 2024 | September 30, 2024 | June 30, 2024 | | :--------------------------------------------------- | :------------ | :------------- | :---------------- | :----------------- | :------------ | | Total noninterest expense (GAAP) | $68,110 | $62,722 | $73,673 | $64,664 | $63,875 | | Less: Non-recurring adjustments | — | — | $(10,880) | $(1,633) | $(1,046) | | Adjusted total noninterest expense (non-GAAP) | $68,110 | $62,722 | $62,793 | $63,031 | $62,829 | [Adjusted Efficiency Ratio](index=19&type=section&id=Adjusted%20Efficiency%20Ratio) This section reconciles the GAAP efficiency ratio to the adjusted (non-GAAP) efficiency ratio by removing the impact of non-recurring adjustments Adjusted Efficiency Ratio ($ in thousands, except share and per share amounts) | ($ in thousands, except share and per share amounts) | June 30, 2025 | March 31, 2025 | December 31, 2024 | September 30, 2024 | June 30, 2024 | | :--------------------------------------------------- | :------------ | :------------- | :---------------- | :----------------- | :------------ | | Efficiency ratio (GAAP) | 64.52 % | 65.19 % | 74.66 % | 65.83 % | 66.42 % | | Less: Impact of non-recurring adjustments | — % | — % | (11.03)% | (1.67)% | (1.09)% | | Adjusted efficiency ratio (non-GAAP) | 64.52 % | 65.19 % | 63.63 % | 64.16 % | 65.33 % | [Fully Tax Equivalent Net Interest Income and Margin](index=19&type=section&id=Fully%20Tax%20Equivalent%20Net%20Interest%20Income%20and%20Margin) This section reconciles GAAP net interest income to fully tax equivalent (FTE) net interest income and presents the FTE net interest margin, adjusting for the tax-exempt income effect Fully Tax Equivalent Net Interest Income and Margin ($ in thousands, except share and per share amounts) | ($ in thousands, except share and per share amounts) | June 30, 2025 | March 31, 2025 | December 31, 2024 | September 30, 2024 | June 30, 2024 | | :--------------------------------------------------- | :------------ | :------------- | :---------------- | :----------------- | :------------ | | Net interest income (GAAP) | $78,499 | $74,478 | $77,047 | $76,158 | $72,899 | | Gross income effect of tax exempt income | $1,204 | $1,192 | $1,161 | $1,132 | $1,156 | | FTE net interest income (non-GAAP) | $79,703 | $75,670 | $78,208 | $77,290 | $74,055 | | Net interest margin | 4.07 % | 4.07 % | 4.09 % | 4.08 % | 4.04 % | | Net interest margin on FTE basis (non-GAAP) | 4.13 % | 4.13 % | 4.15 % | 4.13 % | 4.10 % | [Contacts](index=20&type=section&id=Contacts) This section lists essential contact information for investor relations and media inquiries [Investor and Media Contacts](index=20&type=section&id=Investor%20and%20Media%20Contacts) 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) - **Media Contact:** Jeanne Lipson, Director of Marketing, Sunflower Bank (Jeanne.Lipson@SunflowerBank.com)

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

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

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

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

[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].