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Firstsun Capital Bancorp(FSUN) - 2024 Q2 - Quarterly Results
FSUNFirstsun Capital Bancorp(FSUN)2024-07-29 20:07

Financial Performance - Net income for Q2 2024 was 24.6million,or24.6 million, or 0.88 per diluted share, down from 28.0million,or28.0 million, or 1.11 per diluted share in Q2 2023[1]. - Net income for the quarter was 24,560,000,upfrom24,560,000, up from 12,296,000 in the previous quarter[21]. - Net income for the quarter ended June 30, 2024, was 24,560thousand,downfrom24,560 thousand, down from 28,006 thousand in the same quarter of 2023, a decrease of 12.9%[27]. - Diluted earnings per share increased to 0.88from0.88 from 0.45 in the prior quarter[21]. - Basic earnings per share for the quarter ended June 30, 2024, was 0.90,comparedto0.90, compared to 1.12 for the same quarter in 2023, a decrease of 19.6%[27]. - Return on average total assets improved to 1.26% from 0.64% in the previous quarter[21]. - Return on average stockholders' equity (ROAE) (GAAP) was 10.03% for the quarter ended June 30, 2024, compared to 5.15% in March 2024[45]. Revenue and Income Sources - Noninterest income totaled 23.3million,representing24.223.3 million, representing 24.2% of total revenue, an increase of 0.2% from the prior quarter[10]. - Noninterest income rose to 23,274,000 compared to 22,808,000inthepreviousquarter[21].−Totalnoninterestincomedecreasedto22,808,000 in the previous quarter[21]. - Total noninterest income decreased to 23,274 thousand for the quarter ended June 30, 2024, down from 24,290thousandinthesamequarterof2023,adeclineof4.224,290 thousand in the same quarter of 2023, a decline of 4.2%[27]. - The company reported an increase in service charges on deposits to 5,946 thousand for the quarter ended June 30, 2024, compared to 5,358thousandinthesamequarterof2023,anincreaseof10.95,358 thousand in the same quarter of 2023, an increase of 10.9%[25]. Interest Income and Margin - Net interest margin remained strong at 4.02%, with net interest income totaling 72.9 million, an increase of 2.1millionfromthepriorquarter[4].−NetinterestincomeforthequarterendedJune30,2024,was2.1 million from the prior quarter[4]. - Net interest income for the quarter ended June 30, 2024, was 72,899,000, an increase from 70,806,000inthepreviousquarter[21].−TotalinterestincomeforthequarterendedJune30,2024,was70,806,000 in the previous quarter[21]. - Total interest income for the quarter ended June 30, 2024, was 114,529 thousand, an increase from 102,032thousandforthesameperiodin2023,representingagrowthof12.3102,032 thousand for the same period in 2023, representing a growth of 12.3%[25]. - Net interest income after provision for credit losses was 71,699 thousand for the quarter ended June 30, 2024, compared to 69,413thousandforthesamequarterin2023,reflectinganincreaseof3.369,413 thousand for the same quarter in 2023, reflecting an increase of 3.3%[27]. - Net interest margin for the quarter ended June 30, 2024, was 4.02%, compared to 4.24% for the same period in 2023, indicating a decrease of 22 basis points[33]. - The net interest spread for the quarter was 3.09%, down from 3.54% in the previous year, showing a decrease of 45 basis points[33]. Loan and Deposit Growth - Loan growth was 3.3% annualized, with total loans at 6.3 billion as of June 30, 2024, increasing by 52.3millioninQ22024[12].−Depositgrowthwas10.852.3 million in Q2 2024[12]. - Deposit growth was 10.8% annualized, with total deposits reaching 6.6 billion, an increase of 0.2billioninQ22024[13].−Totalloansheld−for−saleincreasedto0.2 billion in Q2 2024[13]. - Total loans held-for-sale increased to 66,571,000 from 56,813,000inthepreviousquarter[23].−Totaldepositsroseto56,813,000 in the previous quarter[23]. - Total deposits rose to 6,619,525,000 compared to 6,445,388,000inthepreviousquarter[23].−Totaldepositsreached6,445,388,000 in the previous quarter[23]. - Total deposits reached 4,951,013,000, a significant increase from 4,280,980,000,markingagrowthofapproximately15.674,280,980,000, marking a growth of approximately 15.67% year-over-year[33]. - Demand and NOW deposits increased to 621,343,000 with an average yield of 3.80%, compared to 332,695,000and2.55332,695,000 and 2.55% in the prior year[33]. Credit Quality and Losses - The provision for credit losses decreased to 1.2 million, down from 16.5millioninthepriorquarter[6].−Netcharge−offsforQ22024were16.5 million in the prior quarter[6]. - Net charge-offs for Q2 2024 were 2.0 million, resulting in an annualized ratio of 0.13% to average loans, compared to 1.11% in the prior quarter[7]. - Provision for credit losses was 1,200thousandforthequarterendedJune30,2024,significantlylowerthan1,200 thousand for the quarter ended June 30, 2024, significantly lower than 4,422 thousand for the same quarter in 2023, a decrease of 72.8%[25]. - Nonperforming loans increased to 62,558thousandasofJune30,2024,comparedto62,558 thousand as of June 30, 2024, compared to 57,599 thousand in March 31, 2024, indicating a rise of 3.34%[41]. - The ratio of net charge-offs to average loans outstanding decreased to 0.13% for the quarter ended June 30, 2024, down from 1.11% in March 31, 2024, showing an improvement in asset quality[41]. Strategic Developments - The company announced plans for a strategic merger with HomeStreet, Inc. and successfully uplisted to Nasdaq on July 12, 2024[2]. - The company incurred merger-related expenses of 1,046thousandforthequarterendedJune30,2024,withnosuchexpensesreportedinthesamequarterof2023[27].AssetandEquityPosition−TotalassetsasofJune30,2024,were1,046 thousand for the quarter ended June 30, 2024, with no such expenses reported in the same quarter of 2023[27]. Asset and Equity Position - Total assets as of June 30, 2024, were 7,999,295,000, up from 7,781,601,000inthepreviousquarter[23].−Totalliabilitiesroseto7,781,601,000 in the previous quarter[23]. - Total liabilities rose to 7,002,696 thousand, compared to 6,816,939thousandinthepreviousquarter,indicatinganincreaseof2.76,816,939 thousand in the previous quarter, indicating an increase of 2.7%[29]. - Stockholders' equity reached 996,599 thousand, up from 964,662thousand,reflectingagrowthof3.1964,662 thousand, reflecting a growth of 3.1%[29]. - Total stockholders' equity (GAAP) reached 996,599,000 as of June 30, 2024, up from 964,662,000inMarch2024[45].−Tangiblestockholders′equity(non−GAAP)reached964,662,000 in March 2024[45]. - Tangible stockholders' equity (non-GAAP) reached 893,599 thousand as of June 30, 2024, compared to $861,011 thousand as of March 31, 2024, reflecting an increase of 3.67%[43].