FirstSun to acquire First Foundation in $785M deal

Core Viewpoint - FirstSun Capital Bancorp is set to acquire First Foundation and its bank in a deal valued at approximately $785 million, aiming to expand its presence on the West Coast and recover from a previous failed acquisition [1][2]. Group 1: Transaction Details - The acquisition is expected to close in early Q2 2026, resulting in a combined bank with around $17 billion in assets and adding 18 California branches to FirstSun's existing nine-state footprint [2]. - First Foundation investors will receive 0.16083 shares of FirstSun common stock for each share they own, with additional cash considerations of $17.5 million available for warrant holders [4]. - The deal's valuation of $785 million is based on FirstSun's closing stock price of $40.44 as of the previous Friday [4]. Group 2: Ownership and Management Structure - Upon completion of the transaction, FirstSun investors will hold 59.5% of the combined entity, while First Foundation stockholders will own 40.5% [5]. - Five directors from First Foundation are expected to join FirstSun's board, with FirstSun's executive chair, CEO, and CFO retaining their positions in the new organization [5]. - First Foundation's CEO, Tom Shafer, will transition to the role of vice chair after the deal closes [5]. Group 3: Strategic Implications - Tom Shafer described the acquisition as an "exciting new chapter," emphasizing the potential for growth in lending and deposits through First Foundation Advisors, the private wealth management platform [6][7]. - The merger is anticipated to enhance FirstSun's business plan and expand its operational capabilities across a larger geographic footprint [7].