FSUN

FirstSun Capital Bancorp’s second-quarter results reflected both the scale achieved from its First Foundation acquisition and the operational challenges of integration. Management cited robust revenue growth, driven by expansion in Southern California, and strong service fee revenues as bright spots. However, the company reported a GAAP loss, which was attributed to merger-related expenses and elevated credit loss provisioning—primarily from two large, borrower-specific charge-offs. CEO Neal Arnold described the credit losses as “disappointing,” emphasizing that they were isolated events rather than evidence of widespread portfolio deterioration. Is now the time to buy FSUN? Find out in our full research report (it’s free). Revenue: $143.7 million vs analyst estimates of $182.9 million (42.2% year-on-year growth, 21.4% miss) EPS (GAAP): -$0.49 vs analyst estimates of -$0.13 (significant miss) Market Capitalization: $1.91 billion While we enjoy listening to the management’s commentary, our favorite part of earnings calls is the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention. Matt Olney (Stevens): Asked for details on earning asset growth post-downsizing; CFO Rob Kuffera indicated low single-digit growth expectations on both period-end and average balances for the remainder of the year. Matt Olney (Stevens): Queried about drivers of margin improvement; Kuffera explained it would primarily come from lowering funding costs through reducing brokered deposits and remixing toward core deposits. Michael Rose (Raymond James): Sought reassurance on credit controls given rising criticized loans; CEO Neal Arnold emphasized the company’s conservative underwriting and portfolio diversification, noting that recent losses were borrower-specific, not systemic. Michael Rose (Raymond James): Asked about the impact of shedding high-rate deposits; Kuffera confirmed that running off these deposits reduced both balance sheet size and operating costs, describing it as a “good trade.” Michael Rose (Raymond James): Requested clarification on net interest income growth and EPS outlook; Kuffera affirmed expectations for stable to slightly rising net interest income and maintained confidence in achieving long-term EPS targets post-integration. Looking ahead, the StockStory team will monitor (1) the pace and effectiveness of integration efforts, especially the core system conversion slated for September; (2) progress on replacing higher-cost brokered deposits with core funding to support margin expansion; and (3) stabilization of asset quality metrics following recent credit events. Continued realization of cost synergies and deposit growth in new markets will also be important indicators of execution. FirstSun Capital Bancorp currently trades at $38.68, up from $34.81 just before the earnings. Is there an opportunity in the stock? The answer lies in our full research report (it’s free for active Edge members). ONE MORE THING: Top 6 Stocks for This Week. This market is separating quality stocks from expensive ones fast. AI is taking down whole sectors with no warning. In a rotation this fast, you need more than a list of good companies. Our AI system flagged Palantir before it ran 1,662% between October 2022 and February 2026. AppLovin before it ran 753% between February 2024 and February 2026. Nvidia before it ran 1,178% between January 2023 and February 2026. Each week it produces 6 new names that pass the same tests. Get Our Top 6 Stocks for Free HERE. Stocks that have made our list include now familiar names such as Nvidia (+1,460% between June 2020 and June 2025) as well as under-the-radar businesses like the once-small-cap company Comfort Systems (+1,154% between June 2020 and June 2025). Find your next big winner with StockStory today.

Regional banking company FirstSun Capital Bancorp (NASDAQ:FSUN) reported revenue ahead of Wall Street’s expectations in Q2 CY2026, with sales up 82.2% year on year to $184.1 million. Its GAAP loss of $0.49 per share was significantly below analysts’ consensus estimates. Is now the time to buy FSUN? Find out in our full research report (it’s free). Revenue: $184.1 million vs analyst estimates of $182.9 million (82.2% year-on-year growth, 0.7% beat) EPS (GAAP): -$0.49 vs analyst estimates of -$0.13 (significant miss) Market Capitalization: $1.63 billion FirstSun Capital Bancorp’s second-quarter results reflected both the scale achieved from its First Foundation acquisition and the operational challenges of integration. Management cited robust revenue growth, driven by expansion in Southern California, and strong service fee revenues as bright spots. However, the company reported a GAAP loss, which was attributed to merger-related expenses and elevated credit loss provisioning—primarily from two large, borrower-specific charge-offs. CEO Neal Arnold described the credit losses as “disappointing,” emphasizing that they were isolated events rather than evidence of widespread portfolio deterioration. Looking forward, FirstSun Capital Bancorp’s outlook is shaped by ongoing integration work, further portfolio repositioning, and anticipated margin improvement as funding costs decline. Management underscored its focus on driving core deposit growth, completing the core system conversion by late September, and realizing additional cost savings. CFO Rob Kuffera pointed to the opportunity for margin expansion as higher-cost brokered deposits mature and are replaced with lower-cost funding sources. The company believes its expanded footprint and diversified revenue streams provide a platform for durable growth, with Arnold stating, “We have enhanced our long-term growth profile and improved our revenue diversification.” Management attributed strong revenue growth to the completion of the First Foundation acquisition and the successful execution of balance sheet repositioning, while acknowledging that credit losses and merger costs weighed heavily on profitability. Acquisition-driven expansion: The completed acquisition of First Foundation was the primary driver of revenue growth and an expanded footprint, particularly in the Southern California market, which management views as a core deposit growth opportunity. Balance sheet repositioning: FirstSun executed a significant downsizing of acquired assets and liabilities, reducing wholesale funding and improving the funding mix. Management highlighted that these actions have lessened interest rate sensitivity and concentration risk, creating a more resilient balance sheet. Elevated credit losses: Two large, borrower-specific credit events—a fraudulent misrepresentation in materials distribution and deterioration at a technology company—resulted in substantial charge-offs and higher provisioning. Management emphasized these were isolated incidents, not indicative of broad-based loan portfolio deterioration. Service fee revenue growth: Service fees increased materially, now representing 22% of total revenues, supported by both organic growth in mortgage and treasury management fees and additional contributions from the acquired First Foundation operations. Cost savings ahead of schedule: The company realized substantial cost synergies from the integration, achieving 65% of its original cost save target already. Management expects further efficiency gains after the core system conversion, supporting improved profitability. Management expects future performance to hinge on continued integration efficiency, margin improvement from lower funding costs, and stable asset quality as credit normalization progresses. Margin expansion potential: The replacement of high-cost brokered deposits with lower-cost core deposits is expected to drive improvement in net interest margin, with management targeting a return to the high 380 basis point range by early next year. Integration and cost synergies: Completion of the core system conversion in late September should deliver additional cost savings, moving the adjusted efficiency ratio toward the low 60s, and eventually into the high 50s, enabling better operating leverage. Credit normalization focus: Management expects loan losses to return to more typical levels in 2027, after absorbing this year’s elevated, borrower-specific charge-offs. Ongoing portfolio reviews and stress testing are aimed at maintaining conservative credit standards, though management acknowledges the risk of further isolated credit events. Looking ahead, the StockStory team will monitor (1) the pace and effectiveness of integration efforts, especially the core system conversion slated for September; (2) progress on replacing higher-cost brokered deposits with core funding to support margin expansion; and (3) stabilization of asset quality metrics following recent credit events. Continued realization of cost synergies and deposit growth in new markets will also be important indicators of execution. FirstSun Capital Bancorp currently trades at $39.10, up from $34.81 just before the earnings. At this price, is it a buy or sell? Find out in our full research report (it’s free for active Edge members). ONE MORE THING: Top 5 Growth Stocks. The biggest stock winners almost always had one thing in common before they ran. Revenue growing like crazy. Meta. CrowdStrike. Broadcom. Our AI flagged all three. They returned 315%, 314%, and 455%, respectively. Find out which 5 stocks it’s flagging this month — FREE. Get Our Top 5 Growth Stocks for Free HERE. Stocks that have made our list include now familiar names such as Nvidia (+1,460% between June 2020 and June 2025) as well as under-the-radar businesses like the once-micro-cap company Kadant (+214% between June 2020 and June 2025). Find your next big winner with StockStory today.

Interested in FirstSun Capital Bancorp? Here are five stocks we like better. FirstSun reported a $23 million second-quarter net loss, or $0.49 per diluted share, driven by $44 million in after-tax merger expenses and $30 million in after-tax credit-loss provisions following its acquisition of First Foundation. The company completed approximately $3.9 billion in balance-sheet reductions, including acquired loans, securities, brokered deposits and Federal Home Loan Bank borrowings, lowering risk and improving funding flexibility. Management expects continued margin improvement after June’s 3.76% net interest margin. Credit losses were concentrated in two loans, accounting for most of the quarter’s provisions and charge-offs, but nonperforming and criticized loans increased. FirstSun authorized up to $150 million in share repurchases and expects low-double-digit loan growth for the remainder of 2026. FirstSun Capital Bancorp (NASDAQ:FSUN) reported a second-quarter net loss of $23 million, or $0.49 per diluted share, as merger-related expenses and elevated credit provisions weighed on results following its April 1 acquisition of First Foundation. Chief Executive Officer Neal Arnold said the quarter marked an important stage in the company’s integration of First Foundation, which expanded FirstSun’s presence in Southern California and added a wealth management platform. He said the company completed its planned balance-sheet downsizing during the quarter and is focused on completing its core-system conversion in late September. → Volatility Is Back and These 3 Market Tollbooths Are Best Positioned to Profit The quarterly loss included $44 million in after-tax merger-related expenses and $30 million in after-tax credit-loss provisioning, Arnold said. Chief Financial Officer Rob Cafera said adjusted pre-tax, pre-provision net income, excluding merger costs, rose to $70 million, or $1.50 per share, from $37.3 million, or $1.32 per share, in the first quarter. Cafera said FirstSun reduced acquired assets by about $3.9 billion during the second quarter, including $1.4 billion of acquired securities and $1.3 billion of acquired loans. Loan reductions included about $901 million of multifamily loans, $337 million of municipal loans and nearly $100 million of shared national credits. → This Tiny AI Supplier Could Be More Important Than the Chipmakers On the funding side, the company reduced acquired funding by about $3.9 billion, including $2.2 billion in brokered deposits, about $330 million in higher-cost non-relationship deposits and $1.4 billion in Federal Home Loan Bank borrowings. FirstSun’s wholesale funding ratio ended the quarter at 6.8%. Management said the actions reduced concentration, liquidity and interest-rate risks while improving capital flexibility. Excluding acquired First Foundation deposits net of downsizing, core deposits grew at an adjusted annualized rate of about 5%, led by the Los Angeles and Orange County markets. → 2 Stocks Built to Thrive If Inflation Refuses to Fade Core loan balances, excluding acquired loans and net of downsizing, declined at a 6% annualized rate in the second quarter. New loan fundings totaled $377 million, down 29% from the first quarter, while line utilization fell 4%. However, Cafera said core loan balance growth for the first six months of 2026 was 9.7% on the same adjusted basis. Net interest margin was 3.58% in the second quarter, compared with 4.25% in the first quarter. Cafera said the decline reflected the acquired loan portfolio’s lower stated coupons, higher funding costs and the timing of repositioning actions, as loan sales were completed in June. Still, the company said its net interest margin improved by 29 basis points from April to June, reaching 3.76% in June. Deposit costs in June were 20 basis points lower than in April, according to Cafera. FirstSun expects cost-of-funds reductions, including lower brokered-deposit costs and additional funding remixing, to support further margin improvement. Management expects net interest margin to increase slightly in the third quarter from June’s level, reach the mid-3.80% range in the fourth quarter, and move into the high-3.80% range in the first quarter of 2027. Service-fee revenue increased 50.7% from the first quarter, primarily because of the acquisition. The company also reported organic growth in mortgage and treasury-management revenue. Mortgage and wealth-management revenue combined accounted for 62.3% of second-quarter service-fee revenue, while total service-fee revenue represented 22% of company revenue. Provision expense totaled $40.4 million in the second quarter and net charge-offs were $42.4 million, or 145 basis points of average loans on an annualized basis. Two loan events accounted for 86% of the quarter’s provision expense and 82% of charge-offs, Cafera said. The first involved what management described as fraudulent misrepresentations by a borrower in the materials-distribution business. The second involved a technology company whose financial performance deteriorated during the quarter. The two loans generated approximately $35 million in pre-tax charge-offs, Arnold said. Management said the losses were borrower-specific and not indicative of broad-based deterioration in the commercial and industrial portfolio. Nonperforming loans increased to 1.64% of total loans at June 30, from 0.86% at March 31, while criticized loans rose to 7.7% of loans from 4.3%. Cafera said about 76% of the increase in criticized loans was related to the acquired First Foundation portfolio. Multifamily loans represented 60% of the increase in criticized balances. Management said weighted loan-to-value for criticized multifamily loans was 68%, and guarantees covered approximately 94% of those loans. The allowance for credit losses stood at 150 basis points of loans at June 30, up from 120 basis points at the end of the first quarter. FirstSun expects full-year net charge-offs to average in the high-50-basis-point range and anticipates a more normalized charge-off level in 2027. Tangible book value per share was $35.16, down almost 9% from March 31. The company said acquisition-related tangible book value dilution was approximately 10%, lower than its original 14% estimate, reflecting lower expected merger expenses and more favorable net fair-value effects. FirstSun reported a common equity Tier 1 capital ratio of 11.95%, total risk-based capital of 14.13% and a Tier 1 leverage ratio of 9.47%. The company also announced a share-repurchase authorization of up to $150 million, with purchases targeted over the next four quarters beginning in the third quarter. For the remainder of 2026, management expects low-double-digit loan growth from the second-quarter period-end level and low-single-digit deposit growth. It expects mid-single-digit loan and deposit growth in 2027. The company expects its adjusted efficiency ratio to improve to the low-60% range in the fourth quarter as further cost savings are realized after the planned September systems conversion. FirstSun Capital Bancorp engages in the provision of commercial banking services. It operates through the following segments: Banking, Mortgage Operations, and Corporate. The Banking segment consists of loans and provides deposits and fee-based services to consumer, business, and mortgage lending customers. The Mortgage Operations segment originates, sells, services, and manages market risk from changes in interest rates on one-to-four family residential mortgage loans to sell and hold. The company is founded on November 9, 1981 headquartered in Denver, CO. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "FirstSun Capital Bancorp Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for July 2026.

This article first appeared on GuruFocus. Net Loss: $23 million, including $44 million in after-tax merger-related expenses and $30 million in after-tax credit loss provisioning. Deposit Growth: Adjusted annualized growth of approximately 5%, driven by Southern California markets. Service Fee Revenue: Represented 22% of total revenues for the quarter. Share Repurchase Program: Announced up to $150 million in share repurchases over the next four quarters. Asset Reduction: Reduced acquired assets by approximately $3.9 billion, including $1.4 billion in securities and $1.3 billion in loans. Net Interest Margin: 3.58% for the second quarter, down from 4.25% in the first quarter. Charge-offs: $42.4 million or 145 basis points, significantly impacted by two large credit events. Adjusted Pre-tax Pre-provision Net Income (PPNR): $70 million or $1.50 per share. Non-interest Expenses: Adjusted expenses up 57% compared to the first quarter, primarily due to acquisition impact. Capital Ratios: CET1 at 11.95%, total risk-based capital at 14.13%, and tier one leverage at 9.47%. Warning! GuruFocus has detected 1 Warning Sign with FSUN. Is FSUN fairly valued? Test your thesis with our free DCF calculator. Release Date: July 28, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Firstsun Capital Bancorp (NASDAQ:FSUN) completed the acquisition of First Foundation, expanding its footprint in Southern California and enhancing its wealth management platform. The company successfully executed a balance sheet repositioning strategy, reducing concentration and liquidity risks, and strengthening its capital profile. Service fee revenue was strong, accounting for 22% of total revenues, indicating a diversified business model. The company announced a share repurchase program of up to $150 million, aimed at driving shareholder value. Cost savings from the acquisition integration are ahead of schedule, with significant progress already realized. Firstsun Capital Bancorp (NASDAQ:FSUN) reported a net loss of $23 million for the second quarter, impacted by $44 million in after-tax merger-related expenses and $30 million in after-tax credit loss provisioning. The company experienced elevated loan losses, including two significant charge-offs totaling $35 million pre-tax. Net interest margin declined to 3.58% from 4.25% in the previous quarter, influenced by the acquired loan portfolio and higher funding costs. Criticized loans increased, with 76% of the rise related to the acquired First Foundation loan portfolio. Non-performing loans increased to 1.64% of total loans, up from 0.86% in the previous quarter, indicating some asset quality challenges. Q: You mentioned that much of the downsizing strategy occurred towards the end of the quarter in 2Q. Any more color on the average earning asset outlook for the third quarter as it compares to the 2Q number? A: Robert Cafera, CFO: We expect low single-digit growth on both a period-end and an average basis compared to the period end of Q2. This guidance applies to both the third quarter average versus Q2 month-end and through the end of the year. Q: Regarding margin improvement in the back half of the year relative to the June margin, is it primarily due to lower cost of funds? A: Robert Cafera, CFO: Yes, the margin improvement is expected from reducing brokered deposit rates and remixing with core deposits. We anticipate the margin to pick up, reaching mid-380s in the fourth quarter, driven by cost of funds improvements. Q: How should investors feel comfortable about your underwriting process given the increase in criticized loans and larger charge-offs? A: Neal Arnold, CEO: We are primarily a C&I lender, which can be lumpy. We have no loans near our legal lending limit and take concentration seriously. Our underwriting approach hasn't changed, and we constantly review our portfolio by industry and geography. We believe the issues are borrower-specific rather than indicative of a flawed process. Q: Can you clarify the impact of customer service expense on deposits and its effect on NII and operating costs? A: Robert Cafera, CFO: The runoff of high-rate deposits resulted in a smaller balance sheet and lower reported NII, but also reduced operating costs. This trade-off was beneficial as it strengthened our position by reducing high-rate deposits. Q: Is the $5+ EPS target for next year still in play given the earlier cost savings and NII growth expectations? A: Robert Cafera, CFO: We expect stable NII with slight growth in Q4 over Q2. With balance sheet growth, margin expectations, and share buybacks, we are optimistic about achieving the $5+ EPS target for 2027. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Completed the First Foundation acquisition on April 1st, significantly expanding the franchise footprint into Southern California and Southwest Florida markets. Executed a rapid balance sheet repositioning in Q2, reducing acquired assets and liabilities by approximately $3.9 billion to lower concentration and liquidity risks. Attributed the quarterly net loss primarily to $44 million in merger-related expenses and $30 million in credit loss provisioning driven by two isolated loan charge-offs. Achieved 65% of the original $68 million annual cost-saving target ahead of schedule, with further realization expected following the September core system conversion. Maintained a strong capital position with a 10% tangible book value dilution, which was lower than the original 14% estimate due to better-than-expected fair value impacts. Emphasized that while non-performing loans increased, the stress is concentrated in specific relationships rather than reflecting broad-based deterioration in the C&I portfolio. Anticipates low single-digit loan and deposit growth through the end of 2026, transitioning to mid-single-digit growth in 2027 as the portfolio remix stabilizes. Projects net interest margin expansion from 3.76% in June to the mid-380s by Q4 2026, driven by lower funding costs and the maturity of high-cost brokered deposits. Expects the efficiency ratio to improve to the high 50s to low 60s range by Q1 2027 following the completion of the core system conversion. Forecasts a return to normalized charge-off levels in 2027, following an expected high 50s basis point level for the full year 2026. Announced a $150 million share repurchase program to be executed over the next four quarters, targeting a minimum 11% CET1 operating level. Recognized a $26 million after-tax charge-off related to two specific credits: a fraudulent misrepresentation in materials distribution and a struggling technology company. Identified multifamily loans as representing 60% of the increase in criticized loan balances, though management noted strong LTV coverage and 94% guarantee rates. Noted that the strategic exit of high-rate non-interest bearing deposits reduced the NIB mix to 18.1% but improved the overall economic cost of funds. Confirmed the core system conversion is scheduled for late September 2026, marking the final major phase of the First Foundation integration. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. Management expects the primary driver to be a reduction in the cost of funds as $300 million in brokered deposits at 4.77% mature in the second half of the year. The June exit margin of 3.76% serves as the baseline for expected expansion into the mid-380s by year-end. CEO Neil Arnold defended the underwriting process, stating that C&I lending is inherently 'lumpy' and the recent losses were borrower-specific rather than systemic. Management highlighted that they maintain smaller individual loan positions than peers and have no loans approaching legal lending limits. Management remains optimistic about exceeding a $5.00 EPS run rate in 2027, supported by mid-single-digit balance growth and the impact of the new share buyback program. The outlook assumes the efficiency ratio stabilizes in the high 50s following the full realization of merger synergies.

For the quarter ended June 2026, FirstSun Capital (FSUN) reported revenue of $186.34 million, up 74.5% over the same period last year. EPS came in at $0.45, compared to $0.93 in the year-ago quarter. The reported revenue represents a surprise of +1.3% over the Zacks Consensus Estimate of $183.95 million. With the consensus EPS estimate being $0.17, the EPS surprise was +164.71%. While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance. Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance. Here is how FirstSun Capital performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts: Net interest margin (on FTE basis): 3.6% versus 3.7% estimated by two analysts on average. Nonperforming assets: $206.92 million versus $94.83 million estimated by two analysts on average. Nonperforming loans: $190.12 million compared to the $82.15 million average estimate based on two analysts. Net Charge-offs: 1.5% versus the two-analyst average estimate of 1.4%. Average interest earning assets: $16.03 billion versus $15.78 billion estimated by two analysts on average. Efficiency Ratio: 93.3% versus the two-analyst average estimate of 71%. FTE net interest income (non-GAAP): $145.39 million compared to the $143.75 million average estimate based on two analysts. Total Noninterest income: $40.95 million versus the two-analyst average estimate of $40.15 million. Net interest income (GAAP): $143.2 million versus $142.15 million estimated by two analysts on average. View all Key Company Metrics for FirstSun Capital here>>> Shares of FirstSun Capital have returned -10% over the past month versus the Zacks S&P 500 composite's +0.8% change. The stock currently has a Zacks Rank #4 (Sell), indicating that it could underperform the broader market in the near term. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report FirstSun Capital Bancorp (FSUN) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Second Quarter 2026 Highlights: Completed previously announced merger with First Foundation, Inc. ("First Foundation"), acquiring net loans of $6.0 billion, total assets of $11.2 billion, and total deposits of $8.8 billion, net of purchase accounting adjustments Completed remaining merger-related balance sheet repositioning strategy of $3.9 billion comprised of $1.2 billion in cash, $1.4 billion in securities, $1.3 billion in loans, $2.5 billion in deposits, and $1.4 billion in borrowings Net interest margin of 3.58% 22.2% noninterest income to total revenue1 Net (loss) income of $(22.9) million, $(0.49) per diluted share (adjusted, $21.0 million, $0.45 per diluted share, see "Non-GAAP Financial Measures and Reconciliations" below) Return on average total assets of (0.54)% (adjusted, 0.50%, see "Non-GAAP Financial Measures and Reconciliations" below) Return on average stockholders’ equity of (4.92)% (adjusted, 4.52%, see "Non-GAAP Financial Measures and Reconciliations" below) DENVER, July 27, 2026--(BUSINESS WIRE)--FirstSun Capital Bancorp ("FirstSun") (NASDAQ: FSUN) reported net loss of $(22.9) million for the second quarter of 2026 compared to net income of $26.4 million for the second quarter of 2025. Earnings per diluted share were $(0.49) for the second quarter of 2026 compared to $0.93 for the second quarter of 2025. Adjusted net income, a non-GAAP financial measure, was $21.0 million or $0.45 per diluted share for the second quarter of 2026 compared to $26.6 million or $0.94 per diluted share for the second quarter of 2025. On April 1, 2026, we completed our merger with First Foundation and its results of operations are included in our consolidated financial results since the date of acquisition. Therefore, our second quarter and first half of 2026 results reflect increased levels of average balances, net interest income, and expenses compared to our prior quarter and first half of 2025. After purchase accounting adjustments, the acquisition added $11.2 billion of total assets, including $6.0 billion of net loans, as well as $10.5 billion of total liabilities, primarily consisting of $8.8 billion in deposits. We recorded preliminary goodwill of $9.1 million and core deposit intangibles and other intangibles of $90.2 million related to the acquisition. During the second quarter of 2026, we incurred $57.6 million in merger related expenses. During the second quarter of 2026, we completed our previously announced balance sheet repositioning strategy, involving the sale or run-off of select First Foundation loans and securities and using proceeds from such sales and paydowns as well as other available cash and equivalents to reduce higher-cost funding sources. Our balance sheet repositioning strategy was designed to strengthen our capital position, enhance our credit profile, improve our liquidity, and support a more diversified, relationship-focused business model. Our balance sheet repositioning strategy resulted in the liquidation of assets, namely $1.2 billion in cash, $1.4 billion in securities, $1.3 billion in loans, the proceeds of which were used to reduce liabilities, namely $2.5 billion in deposits, and $1.4 billion in borrowings. Neal Arnold, FirstSun’s Chief Executive Officer and President, commented, "The completion of the First Foundation acquisition in the second quarter marked a transformational milestone for our company. We have accelerated our growth strategy and expanded our footprint across some of the most dynamic markets in the country. In the second quarter, we also successfully completed the repositioning strategy and reduced the risk profile of the balance sheet we acquired. We believe the franchise is stronger, with less concentration risk, less liquidity risk, less interest rate sensitivity, and a stronger capital profile as a result of the repositioning actions. While we experienced a decline in our financial results this quarter due to two large loan charge-offs and the merger and integration expenses we incurred in conjunction with completing the First Foundation acquisition, we believe our core business remains strong and we believe we are well positioned for future success. "I want to thank all of our teammates for their diligence, professionalism, and commitment to the hard work of integrating the businesses and continuing to serve our great clients and communities. We remain very excited about the growth opportunities across all of our markets as we continue building a premier regional bank." Share Repurchase Program Our board of directors has authorized a share repurchase program to purchase up to $150.0 million of FirstSun’s common stock in open market transactions or privately negotiated transactions, including pursuant to a trading plan in accordance with Rule 10b5-1 and/or Rule 10b-18 under the Securities Exchange Act of 1934, as amended. The timing, pricing, and amount of any repurchases under the repurchase program will be determined by our management at its discretion based on a variety of factors, including, but not limited to, trading volume and market price of our common stock, corporate considerations, our financial performance, alternative uses for capital, general market and economic conditions, legal and regulatory requirements, and other factors. The repurchase program is authorized through June 30, 2027, although it may be modified, discontinued, or suspended at any time without prior notice. The repurchase program does not obligate FirstSun to purchase any shares. Second Quarter 2026 Results Net loss totaled $(22.9) million, or $(0.49) per diluted share, for the second quarter of 2026, compared to $21.6 million, or $0.76 per diluted share, for the prior quarter. Adjusted net income, a non-GAAP financial measure, totaled $21.0 million, or $0.45 per diluted share, for the second quarter of 2026, compared to $23.7 million, or $0.84 per diluted share, for the prior quarter. Return on average total assets was (0.54)% for the second quarter of 2026, compared to 1.04% for the prior quarter, and return on average stockholders’ equity was (4.92)% for the second quarter of 2026, compared to 7.47% for the prior quarter. Adjusted return on average total assets and adjusted return on average stockholders’ equity, each a non-GAAP financial measure, were 0.50% and 4.52% respectively for the second quarter of 2026 compared to 1.14% and 8.20% respectively for the prior quarter. Net Interest Income and Net Interest Margin Net interest income totaled $143.2 million for the second quarter of 2026, an increase of $60.4 million compared to the prior quarter. Our net interest margin decreased 67 basis points to 3.58% compared to the prior quarter. Average loans, including loans held-for-sale, increased by $5.8 billion in the second quarter of 2026, compared to the prior quarter, due primarily to loans acquired from First Foundation. Loan yield decreased by 20 basis points to 6.16% in the second quarter of 2026, compared to the prior quarter, reflecting a change in portfolio mix resulting from the addition of lower-yielding primarily public finance and multifamily loans acquired from First Foundation. Average investment securities increased by $1.6 billion in the second quarter of 2026, compared to the prior quarter, due primarily to securities acquired from First Foundation. Investment securities yield increased by 150 basis points to 4.80% in the second quarter of 2026, compared to the prior quarter, primarily reflecting a change in portfolio mix resulting from the addition of higher-yielding fixed and floating investment securities acquired from First Foundation. Average interest-bearing cash and other assets increased by $700.9 million in the second quarter of 2026, compared to the prior quarter. Interest-bearing cash and other assets yield decreased by 16 basis points to 3.20% in the second quarter of 2026, compared to the prior quarter, primarily reflecting a change in the composition of interest-bearing cash and other assets resulting from the First Foundation acquisition. Average interest-bearing deposits increased $6.4 billion in the second quarter of 2026, compared to the prior quarter, due primarily to deposits assumed from First Foundation. Total cost of interest-bearing deposits increased by 31 basis points to 2.77% in the second quarter of 2026, compared to the prior quarter, primarily reflecting the addition of higher-cost, non-core deposits acquired from First Foundation. Asset Quality and Provision for Credit Losses The provision for credit losses increased $32.2 million to $40.4 million for the second quarter of 2026, compared to the prior quarter, primarily related to the downgrades and write-downs of two C&I lending relationships. Net charge-offs for the second quarter of 2026 were $42.4 million resulting in an annualized ratio of net charge-offs to average loans of 1.45%, compared to net charge-offs of $10.6 million, or an annualized ratio of net charge-offs to average loans of 0.63% for the prior quarter. The increase in charge-offs for the second quarter of 2026 was primarily related to two C&I loans. The first is an asset-based loan to a materials distributor with an outstanding principal balance of approximately $23.6 million at June 30, 2026. Based on current information, we believe the borrower made fraudulent misrepresentations about its accounts receivable, collateral and historical financial statements and, as a result, in the second quarter of 2026, we recognized an approximate $22.0 million charge-off on this loan, or an annualized net charge-off of 0.75%. The second is a loan to a technology company with an outstanding principal balance of approximately $16.0 million at June 30, 2026. Based on recent developments impacting the borrower’s business, including deterioration in the borrower’s financial performance in the second quarter, we recognized a $12.9 million charge-off on this loan in the second quarter of 2026. In connection with the acquisition of First Foundation, we recorded an initial allowance for credit losses of $92.5 million using the gross up approach, comprised of a $39 million reserve for purchased credit deteriorated loans that exhibited a more-than-insignificant amount of credit deterioration since origination and a $53.5 million reserve on purchased seasoned loans. The allowance for credit losses as a percentage of loans outstanding was 1.50% at June 30, 2026, an increase of 30 basis points from the prior quarter. The ratio of nonperforming assets to total assets was 1.32% at June 30, 2026, compared to 0.82% at March 31, 2026. Noninterest Income Noninterest income totaled $40.9 million for the second quarter of 2026, an increase of $13.8 million from the prior quarter. Income from trust and investment advisory fees increased $7.9 million for the second quarter of 2026 from the prior quarter, primarily due to higher assets under management associated with the acquisition of First Foundation. Income from mortgage banking services increased $1.6 million for the second quarter of 2026 from the prior quarter, primarily due to an increase in loan originations sold and corresponding capitalized servicing rights as well as slower balance runoff in the servicing portfolio. Other noninterest income increased $3.3 million for the second quarter of 2026 from the prior quarter, primarily due to an increase in the fair value of investments related to our deferred compensation plan partially offset by a write-down of an OREO property. Noninterest income as a percentage of total revenue1 was 22.2% for the second quarter of 2026, a decrease of 2.5% from the prior quarter. Noninterest Expense Noninterest expense totaled $171.7 million for the second quarter of 2026, an increase of $96.4 million from the prior quarter. Merger related expenses increased $54.9 million in the second quarter of 2026 from the prior quarter. Salary and employee benefits increased $21.4 million in the second quarter of 2026 from the prior quarter, primarily due to an increase in headcount associated with the acquisition of First Foundation. Other noninterest expense increased $8.1 million in the second quarter of 2026 from the prior quarter, primarily due to higher data processing and FDIC insurance expenses associated with our increased scale following the acquisition of First Foundation. The efficiency ratio for the second quarter of 2026 was 93.25% compared to 68.52% for the prior quarter. The adjusted efficiency ratio, a non-GAAP financial measure, for the second quarter of 2026 was 61.99% compared to 66.08% for the prior quarter. Tax Rate The effective tax rate was 18.3% for the second quarter of 2026, compared to 18.1% for the prior quarter. Loans Loans were $11.6 billion at June 30, 2026, compared to $6.9 billion at March 31, 2026, an increase of $4.6 billion, or 267.5% on an annualized basis, due primarily to the acquisition of First Foundation. Loans, excluding the impact of acquired First Foundation loans, net of repositioning, a non-GAAP financial measure, decreased $105.5 million in the second quarter of 2026, or 6.0% on an annualized basis from the prior quarter. See "Non-GAAP Financial Measures and Reconciliations" below. Deposits Deposits were $13.4 billion at June 30, 2026, compared to $7.1 billion at March 31, 2026, an increase of $6.3 billion in the second quarter of 2026, or 358.3% on an annualized basis, due primarily to the acquisition of First Foundation. Deposits, excluding the impact of acquired First Foundation deposits, net of repositioning, a non-GAAP financial measure, increased $83.9 million in the second quarter of 2026, or 4.8% on an annualized basis from the prior quarter. See "Non-GAAP Financial Measures and Reconciliations" below. Average deposits were $14.5 billion for the second quarter of 2026, compared to $7.0 billion for the prior quarter, an increase of $7.4 billion or 424.8% on an annualized basis. Average deposits, excluding the impact of acquired First Foundation deposits, net of repositioning, a non-GAAP financial measure, increased $226.5 million in the second quarter of 2026, or 12.9% on an annualized basis from the prior quarter. See "Non-GAAP Financial Measures and Reconciliations" below. Noninterest-bearing deposit accounts represented 19.9% of total deposits at June 30, 2026 and our loan to deposit ratio was 86.2% at June 30, 2026. The ratio of total uninsured deposits to total deposits was estimated to be 31.6% at June 30, 2026. The ratio of total uninsured and uncollateralized deposits to total deposits was estimated to be 28.0% at June 30, 2026.2 Capital Capital ratios remain strong and above "well-capitalized" thresholds. As of June 30, 2026, our common equity tier 1 risk-based capital ratio was 11.95%, total risk-based capital ratio was 14.13% and tier 1 leverage ratio was 9.47%. Book value per share was $39.29 at June 30, 2026, a decrease of $2.79 from March 31, 2026. Tangible book value per share, a non-GAAP financial measure, was $35.16 at June 30, 2026, a decrease of $3.41 from March 31, 2026. See "Non-GAAP Financial Measures and Reconciliations" below. Non-GAAP Financial Measures This press release (including the tables within the "Non-GAAP Financial Measures and Reconciliations" section) contains financial measures determined by methods other than in accordance with accounting principles generally accepted in the United States ("GAAP"). Our management uses these non-GAAP financial measures in their analysis of our performance and the efficiency of our operations. Management believes these non-GAAP measures provide a greater understanding of ongoing operations, enhance comparability of results with prior periods and demonstrate the effects of significant items in the current period. We believe a meaningful analysis of our financial performance requires an understanding of the factors underlying that performance. Our management believes investors may find these non-GAAP financial measures useful. These non-GAAP financial measures, however, should not be viewed as a substitute for financial measures determined in accordance with GAAP, nor are they necessarily comparable to non-GAAP performance measures that may be presented by other companies. Below is a listing of the non-GAAP measures used in this press release: Tangible stockholders’ equity to tangible assets; Tangible stockholders’ equity to tangible assets, reflecting net unrealized losses on HTM securities, net of tax; Tangible book value per share; Adjusted net income; Adjusted diluted earnings per share; Adjusted return on average total assets; Adjusted return on average stockholders’ equity; Return on average tangible stockholders’ equity; Adjusted return on average tangible stockholders’ equity; Adjusted total noninterest expense; Adjusted efficiency ratio; and Fully tax equivalent ("FTE") net interest income and net interest margin. Adjusted loan growth Adjusted deposit growth The tables beginning within the "Non-GAAP Financial Measures and Reconciliations" section provide a reconciliation of the non-GAAP financial measures contained in this press release to the most comparable GAAP equivalent. About FirstSun FirstSun Capital Bancorp ("FirstSun") (NASDAQ: FSUN), headquartered in Denver, Colorado, is the financial holding company for wholly owned subsidiaries including Sunflower Bank, N.A. and First Foundation Advisors. Through its subsidiaries and affiliated entities, FirstSun provides a full range of relationship-focused services to meet personal, business, and wealth management financial objectives, with depository branches in ten states and mortgage capabilities in 44 states. FirstSun had total consolidated assets of $15.7 billion as of June 30, 2026. To learn more visit ir.firstsuncb.com or SunflowerBank.com. Investor Earnings Conference Call FirstSun will host a conference call on Tuesday, July 28, 2026 at 11:00 a.m. (ET) to discuss its second quarter 2026 financial results. Participants may join by phone by dialing (833) 461-5787 for toll-free within the US and (585) 542-9983 for all other locations. The conference Meeting ID is 239801426. The numbers for international participants are available here: https://help.events.q4inc.com/eahc/international-dial-in-numbers. An audio replay of the live call, and the accompanying presentation slides, will be available following the live event on the "Events & Presentations page" of FirstSun’s website at https://ir.firstsuncb.com/overview/default.aspx. Deposits Classification Previously, deposit amounts related to certain NOW accounts with limited monthly transaction activity were able to be reclassified to money market accounts to reduce reserve requirements at the Federal Reserve. As there is no longer any impact to reserve requirements across different deposit products, we have discontinued this product reclassification practice and have revised the presentation of those deposits to conform to the current presentation for periods prior to March 31, 2026. CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS This press release contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. All statements other than statements of historical fact are forward-looking statements. Examples of forward-looking statements include, but are not limited to, statements regarding our markets, our merger with First Foundation, including our belief regarding the benefits of the merger and our recently completed balance sheet repositioning on our franchise, the strength of our core business, our ability to drive growth, and that we are well positioned for future success. These statements reflect management’s current expectations and are not guarantees of future performance. Words such as "focus," "confident," "may," "will," "believe," "anticipate," "expect," "intend," "opportunity," "continue," "should," "could," "excited," "progress" and variations of such words and similar expressions are intended to identify such forward-looking statements. Forward-looking statements are subject to risks, uncertainties and assumptions that are difficult to predict with regard to timing, extent, likelihood and degree of occurrence, which could cause actual results to differ materially from anticipated results. Such risks, uncertainties and assumptions, include, among others, the following: changes in interest rates and their related impact on macroeconomic conditions, customer behavior, our funding costs and our loan and securities portfolios; the quality or composition of our loan or investment portfolios and changes therein; failure to maintain our mortgage production flow to secondary markets; the sufficiency of liquidity and changes in our capital position; the inability of our infrastructure initiatives to reduce expenses; increased deposit volatility; potential regulatory developments; U.S. and global trade policies and tensions, including change in, or the imposition of, tariffs and/or trade barriers and the economic impacts, volatility and uncertainty resulting therefrom; ongoing geopolitical conflicts, including hostilities involving Iran and the Middle East, which may contribute to volatility in energy prices, inflation, financial markets, cybersecurity threats, and broader macroeconomic conditions, any of which could adversely affect our borrowers, deposit base, liquidity, capital and results of operation; the possibility that the anticipated benefits of the First Foundation merger, including anticipated cost savings and strategic gains, are not realized when expected or at all; the integration of the businesses and operations of FirstSun and First Foundation may take longer than anticipated or be more costly than anticipated or have unanticipated adverse results relating to the combined company’s business; the diversion of management’s attention from ongoing business operations and opportunities due to the First Foundation merger; other factors, many of which are beyond our control. We caution readers that the foregoing list of factors is not exclusive, is not necessarily in order of importance and readers should not place undue reliance on any forward-looking statements. Additional information concerning additional factors that could materially affect the forward-looking statements in this press release can be found in the cautionary language included under the headings "Cautionary Note Regarding Forward-Looking Statements" and "Risk Factors" in FirstSun’s Annual Report on Form 10-K for the year ended December 31, 2025 and other documents subsequently filed by FirstSun with the SEC. Further, any forward-looking statement speaks only as of the date on which it is made and we do not intend to and disclaim any obligation to update or revise any forward-looking statement to reflect events or circumstances after the date on which the statement is made or to reflect the occurrence of unanticipated events, except as required by law. Summary Data: Condensed Consolidated Statements of Income (Unaudited): Condensed Consolidated Balance Sheets as of (Unaudited): Consolidated Capital Ratios as of: Summary of Net Interest Margin: Deposits as of: Balance Sheet Ratios as of: Loan Portfolio as of: Asset Quality: Non-GAAP Financial Measures and Reconciliations: View source version on businesswire.com: https://www.businesswire.com/news/home/20260725425984/en/ Contacts Investor Contact: Ed JacquesDirector of Investor Relations & Business Development, [email protected] Media Contact: Jeanne LipsonDirector of Marketing, Sunflower [email protected]