Firstsun Capital Bancorp(FSUN) - 2024 Q3 - Quarterly Report

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$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$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$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].