Firstsun Capital Bancorp(US:FSUN)2023-05-12 20:07Financial Performance - Net income for Q1 2023 was $26.3 million, or $1.03 per diluted share, compared to $7.7 million, or $0.41 per diluted share in Q1 2022[230]. - Return on average total assets increased to 1.44% in Q1 2023 from 0.54% in Q1 2022, while return on average stockholders' equity rose to 13.37% from 5.85%[230]. - Net interest income (GAAP) rose by $32.2 million to $73.5 million for the first quarter of 2023, compared to $41.3 million for the same period in 2022, reflecting an increase of 78.0%[238]. - Income before income taxes for the Banking segment increased by $28.6 million to $38.8 million for the first quarter of 2023, compared to $10.2 million for the same period in 2022[238]. - The effective tax rate for Q1 2023 was 21.4%, up from 13.0% in Q1 2022, reflecting increased income during the period[281]. Asset and Deposit Growth - Total assets reached $7.61 billion, up from $5.73 billion year-over-year[232]. - Total deposits increased to $5.99 billion, compared to $4.95 billion in the previous year[232]. - Total assets (GAAP) increased to $7,610,456 thousand as of March 31, 2023, compared to $5,733,748 thousand for the same period in 2022, marking a growth of 32.7%[237]. - Total deposits increased by $0.2 billion to $6.0 billion at March 31, 2023, compared to December 31, 2022[311]. Loan Performance - Loan growth was reported at 10.1% on an annualized basis[230]. - Total loan originations for sale decreased to $200 million for the first quarter of 2023, down from $300 million for the same period in 2022, a decline of 33.3%[239]. - Total loans as of March 31, 2023, were $6.1 billion, an increase from $5.9 billion as of December 31, 2022[292]. - The loan portfolio composition includes 39.9% in commercial and industrial loans, 29.6% in commercial real estate, and 17.3% in residential real estate[292]. Noninterest Income and Expenses - Noninterest income accounted for 20.3% of total revenue in Q1 2023[230]. - Noninterest income decreased by $4.8 million to $18.9 million in Q1 2023 from $23.7 million in Q1 2022, primarily due to a decline in income from mortgage banking services[271]. - Total noninterest expenses increased by $3.8 million to $56.3 million in Q1 2023, compared to $52.5 million in Q1 2022, mainly due to higher occupancy, salary, and other expenses[279]. Efficiency and Margins - The efficiency ratio improved to 60.47% in Q1 2023, down from 80.75% in Q1 2022[232]. - The net interest margin improved to 4.39% from 3.08% year-over-year[232]. - Average earning assets (non-GAAP) increased to $6,755,933 thousand with a net interest margin of 4.46% for the three months ended March 31, 2023[235]. Credit Quality - The allowance for credit losses to loans was reported at 1.23%[232]. - The provision for credit losses for Q1 2023 was $3.4 million, a decrease from $3.7 million in Q1 2022, attributed to slightly lower loan growth[269]. - Nonperforming loans to total loans ratio increased to 0.54% as of March 31, 2023, from 0.49% at December 31, 2022[309]. - The allowance for credit losses at the end of the period was $74,459 thousand, up from $50,509 thousand at December 31, 2022[306]. Market and Regulatory Environment - The company is subject to various regulatory capital requirements and routinely analyzes its capital structure[320]. - There are various legal actions pending against the company, which are incidental to its business operations[323]. - The company has entered into derivative contracts to manage interest rate exposure and provide services to clients[322]. - A simulation model indicates that a 300 basis point increase in interest rates could lead to a 5.9% increase in net interest income as of March 31, 2023[328].