Firstsun Capital Bancorp(FSUN) - 2024 Q2 - Quarterly Results

Financial Performance - Net income for Q2 2024 was $24.6 million, or $0.88 per diluted share, down from $28.0 million, or $1.11 per diluted share in Q2 2023[1]. - Net income for the quarter was $24,560,000, up from $12,296,000 in the previous quarter[21]. - Net income for the quarter ended June 30, 2024, was $24,560 thousand, down from $28,006 thousand in the same quarter of 2023, a decrease of 12.9%[27]. - Diluted earnings per share increased to $0.88 from $0.45 in the prior quarter[21]. - Basic earnings per share for the quarter ended June 30, 2024, was $0.90, 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 $23.3 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 $22,808,000 in the previous quarter[21]. - Total noninterest income decreased to $23,274 thousand for the quarter ended June 30, 2024, down from $24,290 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 $5,358 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 $2.1 million from the prior quarter[4]. - Net interest income for the quarter ended June 30, 2024, was $72,899,000, an increase from $70,806,000 in the previous quarter[21]. - Total interest income for the quarter ended June 30, 2024, was $114,529 thousand, an increase from $102,032 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 $69,413 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 $52.3 million in Q2 2024[12]. - Deposit growth was 10.8% annualized, with total deposits reaching $6.6 billion, an increase of $0.2 billion in Q2 2024[13]. - Total loans held-for-sale increased to $66,571,000 from $56,813,000 in the previous quarter[23]. - Total deposits rose to $6,619,525,000 compared to $6,445,388,000 in the previous quarter[23]. - Total deposits reached $4,951,013,000, a significant increase from $4,280,980,000, 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 $332,695,000 and 2.55% in the prior year[33]. Credit Quality and Losses - The provision for credit losses decreased to $1.2 million, down from $16.5 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 $1,200 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 $62,558 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 $1,046 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 $7,781,601,000 in the previous quarter[23]. - Total liabilities rose to $7,002,696 thousand, compared to $6,816,939 thousand in the previous quarter, indicating an increase of 2.7%[29]. - Stockholders' equity reached $996,599 thousand, up from $964,662 thousand, reflecting a growth of 3.1%[29]. - Total stockholders' equity (GAAP) reached $996,599,000 as of June 30, 2024, up from $964,662,000 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].