Firstsun Capital Bancorp(US:FSUN)2025-11-07 21:06Financial Performance - Net income for Q3 2025 was $23.2 million, an increase from $22.4 million in Q3 2024, with diluted earnings per share rising to $0.82 from $0.79[164] - Adjusted net income (non-GAAP) for the three months ended September 30, 2025, was $23,174 thousand, slightly down from $23,655 thousand in 2024, indicating a decrease of 2.03%[171] - Income before income taxes increased by $9.3 million to $86.1 million for the nine months ended September 30, 2025, compared to $76.7 million for the same period in 2024[173] - Net income for the third quarter of 2025 was $23.2 million, compared to $22.4 million for the same period in 2024[188] - Diluted earnings per share increased to $0.82 for the third quarter of 2025, compared to $0.79 for the same period in 2024[188] Assets and Equity - Total assets as of September 30, 2025, were $8.495 billion, compared to $8.138 billion as of September 30, 2024, reflecting a growth of 4.4%[166] - Total stockholders' equity (GAAP) increased to $1,127,513 thousand as of September 30, 2025, compared to $1,034,085 thousand in 2024, reflecting a growth of 9.05%[170] - The company reported a book value per share of $40.48 as of September 30, 2025, up from $37.38 a year earlier[166] - The total stockholders' equity rose to $1.1 billion at September 30, 2025, up from $1.0 billion at December 31, 2024, reflecting a 10.0% increase[236] Income and Revenue - Net interest income for Q3 2025 was $80.953 million, up from $76.158 million in Q3 2024, indicating a year-over-year increase of 10.5%[166] - Noninterest income accounted for 24.5% of total revenue in Q3 2025, compared to 22.5% in Q3 2024[167] - Revenue from mortgage banking services increased by $5.7 million to $36.9 million for the nine months ended September 30, 2025, compared to $31.2 million for the same period in 2024[176] - Noninterest income for the nine months ended September 30, 2025, rose by $7.0 million to $75.1 million compared to the same period in 2024[223] Loans and Deposits - The loan growth rate was 10.6% annualized, while deposit growth was modest at 0.3% annualized[167] - Total loans held-for-investment increased to $6.7 billion at September 30, 2025, from $6.4 billion at December 31, 2024, reflecting a growth of 4.8%[243] - Total deposits increased by $0.4 billion to $7.1 billion as of September 30, 2025, compared to $6.67 billion at December 31, 2024[257] - Total consumer deposits rose to $3.61 billion, up from $3.39 billion, while total business deposits increased to $3.07 billion from $2.84 billion[257] Credit Losses and Risk Management - The provision for credit losses was $10.1 million in Q3 2025, compared to $5 million in Q3 2024, reflecting increased caution in credit risk management[166] - Provision for credit losses increased by $4.2 million to $10.5 million for the third quarter of 2025, compared to $6.4 million in 2024, reflecting a significant rise of 65.63%[172] - The allowance for credit losses is maintained to absorb expected losses in the loan portfolio, reflecting ongoing evaluations of credit quality and risk[210] - The allowance for credit losses at the end of the period is $84,040,000, representing 1.26% of total loans[252] Efficiency and Cost Management - The efficiency ratio improved to 64.22% in Q3 2025 from 65.83% in Q3 2024, indicating better cost management[168] - Noninterest expenses increased by $4.2 million to $68.9 million for Q3 2025, compared to $64.7 million in Q3 2024, representing a 6.5% increase[228] - Salary and employee benefits rose to $34.5 million for the third quarter of 2025, up from $30.5 million in 2024, marking an increase of 16.39%[172] Interest Rates and Economic Impact - Inflation primarily impacts operations through increasing operating costs and non-interest expenses, with net interest margin being more affected by interest rate changes than general inflation[276] - The interest rate shock simulation shows that a +300 basis point change in interest rates could lead to an 8.6% increase in net interest income for 2025[278] - A +200 basis point change in interest rates would result in a 5.8% increase in net interest income for 2025[278] - A -100 basis point change in interest rates would lead to a 2.5% increase in net interest income for 2025[278]