Firstsun Capital Bancorp(US:FSUN)2022-05-12 19:22Financial Performance - For the three months ended March 31, 2022, net income totaled $7.7 million, or $0.41 per diluted share, compared to $14.3 million, or $0.76 per diluted share for the same period in 2021[152]. - Net income for the three months ended March 31, 2022, was $7,669 thousand, a decrease of 46.5% from $14,338 thousand in the same period of 2021[166]. - The return on average assets was 0.54% for the three months ended March 31, 2022, down from 1.13% for the same period in 2021[152]. - Return on average tangible common equity was 6.56% for the three months ended March 31, 2022, down from 12.77% in the same period of 2021[158]. - The effective tax rate decreased to 13.0% for the three months ended March 31, 2022, from 17.9% for the same period in 2021, due to decreased income[194]. Loan and Asset Growth - Loan growth was 27.5% annualized (excluding PPP loan balances), with a 30.90% growth rate when including PPP loans[153]. - Total loans, excluding loans held-for-sale, increased to $4.32 billion as of March 31, 2022, compared to $3.68 billion for the same period in 2021[154]. - Total loans (GAAP) increased to $4,315,031 thousand for the three months ended March 31, 2022, up from $3,676,756 thousand in the same period of 2021, representing a growth of 17.4%[158]. - Total assets as of March 31, 2022, were $5.73 billion, an increase from $5.32 billion for the same period in 2021[154]. - Average earning assets for the three months ended March 31, 2022, were $5.4 billion, an increase of $0.6 billion, or 11.8%, compared to the same period in 2021[172]. Noninterest Income and Expenses - Noninterest income for the three months ended March 31, 2022, was $23.7 million, a decrease from $33.9 million for the same period in 2021[154]. - Noninterest income decreased to $23,693 thousand for the three months ended March 31, 2022, down from $33,881 thousand in the same period of 2021, a decline of 30.0%[166]. - Noninterest expenses decreased by $2.7 million to $52.5 million for the three months ended March 31, 2022, compared to $55.2 million for the same period in 2021, primarily due to a $4.4 million decrease in salary and employee benefits[190]. - Income from mortgage banking services decreased by $10.5 million to $14.6 million for the three months ended March 31, 2022, compared to $25.1 million for the same period in 2021[187]. Efficiency and Ratios - The efficiency ratio for the three months ended March 31, 2022, was 80.75%, compared to 76.32% for the same period in 2021[154]. - Efficiency ratio increased to 80.75% for the three months ended March 31, 2022, compared to 76.32% in the same period of 2021, indicating a decline in operational efficiency[166]. - The net interest margin was 3.08% for the three months ended March 31, 2022, a decrease of 13 basis points from 3.21% for the same period in 2021[174]. Provision for Loan Losses - The provision for loan losses was $3.7 million for the three months ended March 31, 2022, compared to a release of provision expense of $0.4 million for the same period in 2021[181]. - The provision for loan losses was $3.7 million for the three months ended March 31, 2022, compared to a provision of $(0.35) million in the same period of the previous year[209]. - The allowance for loan losses to loans was 1.17% as of March 31, 2022, compared to 1.28% for the same period in 2021[154]. - The allowance for loan losses increased to $50.509 million, representing 1.17% of total loans, compared to 1.28% in the previous year[209]. Deposits and Liquidity - Total deposits grew by $0.1 billion to $4.9 billion at March 31, 2022, with growth observed across all states in the company's footprint[218]. - Noninterest-bearing deposits grew by $0.4 billion, or 40.2%, for the three months ended March 31, 2022, compared to the same period in 2021[173]. - Approximately $2.5 billion of the deposit portfolio was uninsured as of March 31, 2022[219]. - Customer deposits, excluding brokered deposits and certificates of deposit greater than $250,000, were 108.8% of net loans as of March 31, 2022, compared to 113.2% at December 31, 2021[224]. Merger and Corporate Structure - The merger with Pioneer Bancshares, Inc. was completed on April 1, 2022, acquiring 19 branches in Texas[149]. - The company operates through two segments: Banking and Mortgage Operations, with certain expenses allocated to Corporate[147]. - Merger-related expenses of $0.3 million were incurred for the merger with Pioneer, which was completed on April 1, 2022, with no such expenses in the same period of 2021[192]. Other Financial Metrics - The average balance of noninterest-bearing demand deposit accounts was $1.566 billion, while total deposits had an average rate paid of 0.13%[219]. - Stockholders' equity decreased to $515.5 million at March 31, 2022, a decline of $8.5 million, or 1.6%, from $524.0 million at December 31, 2021[226]. - The Bank had $40.0 million in advances from the FHLB and a remaining credit availability of $736.1 million as of March 31, 2022[224]. - The simulation model indicated that a +300 basis point change in interest rates would increase net interest income by 22.1% as of March 31, 2022[236].