FirstSun Capital Bancorp Reports First Quarter 2025 Results
First Quarter 2025 Highlights:
-- Net income of $23.6 million, $0.83 per diluted share -- Net interest margin of 4.07% -- Return on average total assets of 1.20% -- Return on average stockholders' equity of 9.03% -- Loan growth of 6.8%, annualized -- Deposit growth of 12.3%, annualized -- 22.6% noninterest income to total revenue1 DENVER--(BUSINESS WIRE)--April 28, 2025--
FirstSun Capital Bancorp ("FirstSun") (NASDAQ: FSUN) reported net income of $23.6 million for the first quarter of 2025 compared to net income of $12.3 million for the first quarter of 2024. Earnings per diluted share were $0.83 for the first quarter of 2025 compared to $0.45 for the first quarter of 2024. Adjusted net income, a non-GAAP financial measure, was $14.6 million or $0.53 per diluted share for the first quarter of 2024. Net income, for the first quarter of 2024, was negatively impacted by a provision for credit loss on a specific customer in our commercial and industrial (C&I) loan portfolio of $10.6 million, net of tax, or $0.39 per diluted share.
Neal Arnold, FirstSun's Chief Executive Officer and President, commented, "We are pleased to deliver another strong quarter as our focus on growing our C&I and consumer relationships across all of our southwestern and western markets continues to yield favorable results. Among the highlights this quarter were a net interest margin of 4.07%, and strong growth in both deposits and loans. We believe our performance amidst this challenging banking environment continues to position us uniquely amongst our peers. While the economic outlook and interest rate environment may remain uncertain, our focus is on what we directly control and executing across all of our diverse businesses to grow our franchise and deliver strong financial results.
"We are also pleased to announce that we have officially opened our new branch locations in San Diego and in Los Angeles. We are excited with our growth in Southern California and we look forward to continuing to grow our clients and business relationships in these large and diverse markets."
First Quarter 2025 Results
Net income totaled $23.6 million, or $0.83 per diluted share, for the first quarter of 2025, compared to $16.4 million, or $0.58 per diluted share, for the prior quarter. Adjusted net income, a non-GAAP financial measure, was $24.3 million or $0.86 per diluted share for the fourth quarter of 2024.
The return on average total assets was 1.20% for the first quarter of 2025, compared to 0.81% for the prior quarter, and the return on average stockholders' equity was 9.03% for the first quarter of 2025, compared to 6.22% for the prior quarter. Fourth quarter of 2024 non-recurring expenses, net of tax, negatively impacted return on average total assets by 0.39% and return on average stockholders' equity by 3.02%.
Net Interest Income and Net Interest Margin
Net interest income totaled $74.5 million for the first quarter of 2025, a decrease of $2.6 million compared to the prior quarter. Our net interest margin decreased two basis points to 4.07% compared to the prior quarter. Results for the first quarter of 2025, compared to the prior quarter, were primarily driven by a decrease of 13 basis points in the yield on earning assets, largely offset by a decrease of 16 basis points in the cost of interest-bearing liabilities.
Average loans, including loans held-for-sale, decreased by $61.0 million in the first quarter of 2025, compared to the prior quarter. Loan yield decreased by 15 basis points to 6.36% in the first quarter of 2025, compared to the prior quarter, primarily due to the declining interest rate environment and its impact on variable rate loans in the portfolio. Average interest-bearing deposits increased $65.0 million in the first quarter of 2025, compared to the prior quarter. Total cost of interest-bearing deposits decreased by 12 basis points to 2.73% in the first quarter of 2025, compared to the prior quarter, primarily due to rate decreases for certificates of deposit and money market deposits. Average FHLB borrowings decreased $92.5 million in the first quarter of 2025, compared to the prior quarter. The cost of FHLB borrowings decreased by 42 basis points to 4.60% in the first quarter of 2025, compared to the prior quarter.
Asset Quality and Provision for Credit Losses
The provision for credit losses totaled $3.8 million for the first quarter of 2025 impacted by deterioration on a specific customer relationship and factors related to increasing economic uncertainty, partially offset by impacts from net portfolio upgrades and increasing prepayment experience.
Net charge-offs for the first quarter of 2025 were $0.6 million resulting in an annualized ratio of net charge-offs to average loans of 0.04%, compared to net charge-offs (recoveries) of $(0.5) million, or an annualized ratio of net-charge offs (recoveries) to average loans of (0.03)% for the prior quarter.
The allowance for credit losses as a percentage of total loans was 1.42% at March 31, 2025, an increase of four basis points from the prior quarter. The ratio of nonperforming assets to total assets was 1.02% at March 31, 2025, compared to 0.92% at December 31, 2024.
Noninterest Income
Noninterest income totaled $21.7 million for the first quarter of 2025, an increase of $0.1 million from the prior quarter. Mortgage banking income decreased $0.6 million for the first quarter of 2025, primarily due to a decrease in MSR capitalization and in the change in fair value of our MSR asset, net of hedging activity, partially offset by an improvement in gain on sale margin.
Other noninterest income increased $0.8 million for the first quarter of 2025, primarily due to an increase in loan syndication and swap service fees. Noninterest income as a percentage of total revenue(1) was 22.6%, an increase of 0.7% from the prior quarter.
Noninterest Expense
Noninterest expense totaled $62.7 million for the first quarter of 2025, a decrease of $11.0 million from the prior quarter. Adjusted noninterest expense, a non-GAAP financial measure, totaled $62.8 million for the fourth quarter of 2024. Adjusted noninterest expense, a non-GAAP financial measure, decreased $0.1 million from the prior quarter as the seasonal increase in salary and employee benefits due to payroll taxes was offset by decreases in legal, travel and entertainment, marketing, and collection and appraisal expenses.
The efficiency ratio for the first quarter of 2025 was 65.19% compared to 74.66% for the prior quarter. The adjusted efficiency ratio, a non-GAAP financial measure, for the first quarter of 2025 was 65.19% compared to 63.63% for the prior quarter.
Tax Rate
The effective tax rate was 20.6% for the first quarter of 2025, compared to 18.9% for the prior quarter.
Loans
Loans were $6.5 billion at March 31, 2025 compared to $6.4 billion at December 31, 2024, an increase of $107.7 million in the first quarter of 2025, or 6.8% on an annualized basis primarily due to an increase of $137.3 million of commercial and industrial loans partially offset by a decrease of $28.3 million in commercial real estate.
Deposits
Deposits were $6.9 billion at March 31, 2025 compared to $6.7 billion at December 31, 2024, an increase of $202.0 million in the first quarter of 2025, or 12.3% on an annualized basis primarily due to growth of $140.7 million in savings and money market accounts, $33.6 million in noninterest-bearing demand deposit accounts, and $22.9 million in interest-bearing demand accounts. Noninterest-bearing deposit accounts represented 22.9% of total deposits at March 31, 2025 and the loan-to-deposit ratio was 94.3% at March 31, 2025.
Capital
Capital ratios remain strong and above "well-capitalized" thresholds. As of March 31, 2025, our common equity tier 1 risk-based capital ratio was 13.26%, total risk-based capital ratio was 15.52% and tier 1 leverage ratio was 12.47%. Book value per share was $38.49 at March 31, 2025, an increase of $0.91 from December 31, 2024. Tangible book value per share, a non-GAAP financial measure, was $34.88 at March 31, 2025, an increase of $0.94 from December 31, 2024.
Non-GAAP Financial Measures
This press release contains financial measures determined by methods other than in accordance with principles generally accepted in the United States ("GAAP"). FirstSun management uses these non-GAAP financial measures in their analysis of FirstSun's performance and the efficiency of its 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. FirstSun believes a meaningful analysis of its financial performance requires an understanding of the factors underlying that performance. FirstSun 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.
The tables within the "Non-GAAP Financial Measures and Reconciliations" section provide a reconciliation of each non-GAAP financial measure contained in this press release to the most comparable GAAP equivalent.
About FirstSun Capital Bancorp
FirstSun Capital Bancorp, headquartered in Denver, Colorado, is the financial holding company for Sunflower Bank, N.A., which operates as Sunflower Bank, First National 1870 and Guardian Mortgage, which we are in the process of rebranding as Sunflower Bank Mortgage Lending. Sunflower Bank provides a full range of relationship-focused services to meet personal, business and wealth management financial objectives, with customers in seven states and mortgage capabilities in 43 states. FirstSun had total consolidated assets of $8.2 billion as of March 31, 2025.
First National 1870 and Guardian Mortgage are divisions of Sunflower Bank, N.A. To learn more, visit ir.firstsuncb.com, SunflowerBank.com, FirstNational1870.com or GuardianMortgageOnline.com.
Day-Count Convention
Annualized ratios are presented utilizing the Actual/Actual day-count convention. Prior period annualized ratios have been recalculated to conform to the current presentation.
(1) Total revenue is net interest income plus noninterest income.
Summary Data:
As of and for the three months ended
-----------------------------------------------------------------------------------
($ in thousands,
except per share March 31, December 31, September 30, June 30, March 31,
amounts) 2025 2024 2024 2024 2024
--------------- --------------- --------------- --------------- ---------------
Net interest income $ 74,478 $ 77,047 $ 76,158 $ 72,899 $ 70,806
Provision for credit
losses 3,800 4,850 5,000 1,200 16,500
Noninterest income 21,729 21,635 22,075 23,274 22,808
Noninterest expense 62,722 73,673 64,664 63,875 61,828
Income before income
taxes 29,685 20,159 28,569 31,098 15,286
Provision for income
taxes 6,116 3,809 6,147 6,538 2,990
Net income 23,569 16,350 22,422 24,560 12,296
Adjusted net
income(1) 23,569 24,316 23,655 25,181 14,592
Weighted average
common shares
outstanding, basic 27,721,760 27,668,470 27,612,538 27,430,761 27,019,625
Weighted average
common shares
outstanding,
diluted 28,293,912 28,290,474 28,212,809 28,031,956 27,628,941
Diluted earnings per
share $ 0.83 $ 0.58 $ 0.79 $ 0.88 $ 0.45
Adjusted diluted
earnings per
share(1) $ 0.83 $ 0.86 $ 0.84 $ 0.90 $ 0.53
Return on average
total assets 1.20% 0.81% 1.12% 1.27% 0.65%
Adjusted return on
average total
assets(1) 1.20% 1.20% 1.18% 1.30% 0.77%
Return on average
stockholders'
equity 9.03% 6.22% 8.74% 10.08% 5.18%
Adjusted return on
average
stockholders'
equity(1) 9.03% 9.24% 9.22% 10.34% 6.14%
Return on average
tangible
stockholders'
equity(1) 10.18% 7.36% 9.94% 11.51% 6.11%
Adjusted return on
average tangible
stockholders'
equity(1) 10.18% 10.72% 10.48% 11.79% 7.20%
Net interest margin 4.07% 4.09% 4.08% 4.04% 4.01%
Net interest margin
(FTE basis)(1) 4.13% 4.15% 4.13% 4.10% 4.08%
Efficiency ratio 65.19% 74.66% 65.83% 66.42% 66.05%
Adjusted efficiency
ratio(1) 65.19% 63.63% 64.16% 65.33% 63.39%
Noninterest income
to total
revenue(2) 22.6% 21.9% 22.5% 24.2% 24.4%
Total assets $ 8,216,458 $ 8,097,387 $ 8,138,487 $ 7,999,295 $ 7,781,601
Total loans
held-for-sale 65,603 61,825 72,247 66,571 56,813
Total loans
held-for-investment 6,484,008 6,376,357 6,443,756 6,337,162 6,284,868
Total deposits 6,874,239 6,672,260 6,649,880 6,619,525 6,445,388
Total stockholders'
equity 1,068,295 1,041,366 1,034,085 996,599 964,662
Loan to deposit
ratio 94.3% 95.6% 96.9% 95.7% 97.5%
Period end common
shares outstanding 27,753,918 27,709,679 27,665,918 27,443,246 27,442,943
Book value per share $ 38.49 $ 37.58 $ 37.38 $ 36.31 $ 35.15
Tangible book value
per share(1) $ 34.88 $ 33.94 $ 33.68 $ 32.56 $ 31.37
(1) Represents a non-GAAP financial measure. See the tables within the
"Non-GAAP Financial Measures and Reconciliations" section for a
reconciliation of each non-GAAP measure to the most comparable GAAP
equivalent.
(2) Total revenue is net interest income plus noninterest income.
Condensed Consolidated Statements of
Income (Unaudited):
For the three months ended
------------------------------
March 31, March 31,
($ in thousands, except per share amounts) 2025 2024
----------------- -----------
Total interest income $ 110,447 $ 110,040
Total interest expense 35,969 39,234
--- ------------ ----------
Net interest income 74,478 70,806
Provision for credit losses 3,800 16,500
--- ------------ ----------
Net interest income after provision for
credit losses 70,678 54,306
Noninterest income:
Service charges on deposits 2,027 2,344
Treasury management service fees 4,194 3,468
Credit and debit card fees 2,586 2,759
Trust and investment advisory fees 1,421 1,463
Mortgage banking income, net 9,055 9,502
Other noninterest income 2,446 3,272
--- ------------ ----------
Total noninterest income 21,729 22,808
Noninterest expense:
Salaries and benefits 39,561 37,353
Occupancy and equipment 9,536 8,595
Amortization of intangible assets 628 815
Terminated merger related expenses -- 2,489
Other noninterest expenses 12,997 12,576
--- ------------ ----------
Total noninterest expense 62,722 61,828
--- ------------ ----------
Income before income taxes 29,685 15,286
Provision for income taxes 6,116 2,990
--- ------------ ----------
Net income $ 23,569 $ 12,296
=== ============ ==========
Earnings per share - basic $ 0.85 $ 0.46
Earnings per share - diluted $ 0.83 $ 0.45
For the three months ended
---------------------------------------------------
($ in thousands, March March
except per share 31, December September June 30, 31,
amounts) 2025 31, 2024 30, 2024 2024 2024
-------- --------- ---------- -------- --------
Total interest
income $110,447 $ 116,039 $ 118,932 $114,529 $110,040
Total interest
expense 35,969 38,992 42,774 41,630 39,234
------- -------- --------- ------- -------
Net interest
income 74,478 77,047 76,158 72,899 70,806
Provision for
credit losses 3,800 4,850 5,000 1,200 16,500
------- -------- --------- ------- -------
Net interest
income after
provision for
credit losses 70,678 72,197 71,158 71,699 54,306
Noninterest
income:
Service charges
on deposits 2,027 2,219 2,560 2,372 2,344
Treasury
management
service fees 4,194 3,982 3,748 3,631 3,468
Credit and
debit card
fees 2,586 2,706 2,738 2,950 2,759
Trust and
investment
advisory fees 1,421 1,436 1,395 1,493 1,463
Mortgage
banking
income, net 9,055 9,631 8,838 11,043 9,502
Other
noninterest
income 2,446 1,661 2,796 1,785 3,272
------- -------- --------- ------- -------
Total
noninterest
income 21,729 21,635 22,075 23,274 22,808
Noninterest
expense:
Salaries and
benefits 39,561 38,498 39,306 39,828 37,353
Occupancy and
equipment 9,536 9,865 9,121 8,701 8,595
Amortization of
intangible
assets 628 1,431 651 652 815
Terminated
merger related
expenses -- 8,010 1,633 1,046 2,489
Other
noninterest
expenses 12,997 15,869 13,953 13,648 12,576
------- -------- --------- ------- -------
Total
noninterest
expense 62,722 73,673 64,664 63,875 61,828
------- -------- --------- ------- -------
Income
before
income
taxes 29,685 20,159 28,569 31,098 15,286
Provision for
income taxes 6,116 3,809 6,147 6,538 2,990
------- -------- --------- ------- -------
Net income $ 23,569 $ 16,350 $ 22,422 $ 24,560 $ 12,296
======= ======== ========= ======= =======
Earnings per
share - basic $ 0.85 $ 0.59 $ 0.81 $ 0.90 $ 0.46
Earnings per
share - diluted $ 0.83 $ 0.58 $ 0.79 $ 0.88 $ 0.45
Condensed Consolidated
Balance Sheets as of
(Unaudited):
March 31, December September June 30, March 31,
($ in thousands) 2025 31, 2024 30, 2024 2024 2024
----------- ----------- ----------- ----------- -------------
Assets
Cash and cash
equivalents $ 621,377 $ 615,917 $ 573,674 $ 535,766 $ 383,605
Securities
available-for-sale, at
fair value 480,615 469,076 496,811 491,649 499,078
Securities
held-to-maturity 34,914 35,242 35,885 36,310 36,640
Loans held-for-sale, at
fair value 65,603 61,825 72,247 66,571 56,813
Loans 6,484,008 6,376,357 6,443,756 6,337,162 6,284,868
Allowance for credit
losses (91,790) (88,221) (83,159) (78,960) (79,829)
--------- --------- --------- --------- ---------
Loans, net 6,392,218 6,288,136 6,360,597 6,258,202 6,205,039
Mortgage servicing
rights, at fair value 82,927 84,258 78,799 80,744 78,416
Premises and equipment,
net 82,333 82,483 82,532 83,320 84,063
Other real estate owned
and foreclosed assets,
net 4,914 5,138 4,478 4,497 4,414
Goodwill 93,483 93,483 93,483 93,483 93,483
Intangible assets, net 6,806 7,434 8,866 9,517 10,168
All other assets 351,268 354,395 331,115 339,236 329,882
--------- --------- --------- --------- ---------
Total assets $8,216,458 $8,097,387 $8,138,487 $7,999,295 $7,781,601
========= ========= ========= ========= =========
Liabilities and
Stockholders' Equity
Liabilities:
Deposits:
Noninterest-bearing
demand deposit
accounts $1,574,736 $1,541,158 $1,554,762 $1,562,308 $1,517,315
Interest-bearing
deposit accounts:
Interest-bearing
demand accounts 708,783 685,865 645,647 538,232 542,184
Savings and money
market accounts 2,974,774 2,834,123 2,608,808 2,505,439 2,473,255
NOW accounts 39,806 45,539 41,234 42,687 39,181
Certificate of
deposit accounts 1,576,140 1,565,575 1,799,429 1,970,859 1,873,453
--------- --------- --------- --------- ---------
Total deposits 6,874,239 6,672,260 6,649,880 6,619,525 6,445,388
Securities sold under
agreements to
repurchase 8,515 14,699 10,913 20,408 20,423
Federal Home Loan Bank
advances 35,000 135,000 215,000 145,000 144,810
Other borrowings 75,969 75,841 75,709 75,577 75,445
Other liabilities 154,440 158,221 152,900 142,186 130,873
--------- --------- --------- --------- ---------
Total
liabilities 7,148,163 7,056,021 7,104,402 7,002,696 6,816,939
Stockholders' equity:
Preferred stock -- -- -- -- --
Common stock 3 3 3 3 3
Additional paid-in
capital 547,484 547,325 547,271 543,339 542,582
Retained earnings 556,719 533,150 516,800 494,378 469,818
Accumulated other
comprehensive loss,
net (35,911) (39,112) (29,989) (41,121) (47,741)
--------- --------- --------- --------- ---------
Total
stockholders'
equity 1,068,295 1,041,366 1,034,085 996,599 964,662
--------- --------- --------- --------- ---------
Total
liabilities and
stockholders'
equity $8,216,458 $8,097,387 $8,138,487 $7,999,295 $7,781,601
========= ========= ========= ========= =========
Consolidated
Capital
Ratios as
of:
March 31, December September June 30, March 31,
2025 31, 2024 30, 2024 2024 2024
--------- ---------- ----------- --------- ---------
Stockholders'
equity to
total assets 13.00% 12.86% 12.71% 12.46% 12.40%
Tangible
stockholders'
equity to
tangible
assets(1) 11.93% 11.76% 11.59% 11.32% 11.21%
Tangible
stockholders'
equity to
tangible
assets
reflecting
net
unrealized
losses on HTM
securities,
net of tax(1,
2) 11.89% 11.71% 11.56% 11.27% 11.17%
Tier 1
leverage
ratio 12.47% 12.11% 11.96% 11.83% 11.73%
Common equity
tier 1
risk-based
capital
ratio 13.26% 13.18% 13.06% 12.80% 12.54%
Tier 1
risk-based
capital
ratio 13.26% 13.18% 13.06% 12.80% 12.54%
Total
risk-based
capital
ratio 15.52% 15.42% 15.25% 14.95% 14.73%
(1) Represents a non-GAAP financial measure. See the tables within the
"Non-GAAP Financial Measures and Reconciliations" section for a
reconciliation of each non-GAAP measure to the most comparable GAAP
equivalent.
(2) Tangible stockholders' equity and tangible assets have been adjusted to
reflect net unrealized losses on held-to-maturity securities, net of
tax.
Summary of Net
Interest Margin:
For the three months ended
--------------------------------------------------
March 31, 2025 March 31, 2024
------------------------ ------------------------
Average Average Average Average
(In thousands) Balance Yield/Rate Balance Yield/Rate
---------- ------------ ---------- ------------
Interest Earning
Assets
Loans(1) 6,420,710 6.36% 6,313,855 6.51%
Investment securities 501,809 3.53% 546,960 3.30%
Interest-bearing cash
and other assets 500,857 4.37% 239,508 5.52%
--------- ------ --- --------- ----- ----
Total earning
assets 7,423,376 6.03% 7,100,323 6.23%
Other assets 548,976 548,642
--------- ---------
Total assets $7,972,352 $7,648,965
========= =========
Interest-bearing
liabilities
Demand and NOW
deposits $ 720,700 3.21% $ 549,491 3.56%
Savings deposits 400,801 0.58% 421,882 0.69%
Money market deposits 2,441,737 2.19% 2,063,321 1.94%
Certificates of
deposits 1,547,634 3.91% 1,814,629 4.62%
--------- ------ --- --------- ----- ----
Total deposits 5,110,872 2.73% 4,849,323 3.02%
Repurchase agreements 9,615 1.57% 21,254 1.07%
--------- ------ --- --------- ----- ----
Total deposits and
repurchase
agreements 5,120,487 2.73% 4,870,577 3.01%
FHLB borrowings 29,489 4.60% 110,777 5.59%
Other long-term
borrowings 75,907 6.43% 75,389 6.65%
--------- ------ --- --------- ----- ----
Total
interest-bearing
liabilities 5,225,883 2.79% 5,056,743 3.12%
Noninterest-bearing
deposits 1,532,150 1,502,707
Other liabilities 155,337 134,370
Stockholders' equity 1,058,982 955,145
--------- ---------
Total
liabilities
and
stockholders'
equity $7,972,352 $7,648,965
========= =========
Net interest spread 3.24% 3.11%
Net interest margin 4.07% 4.01%
Net interest margin
(on FTE basis)(2) 4.13% 4.08%
(1) Includes loans held-for-investment, including nonaccrual loans, and
loans held-for-sale.
(2) Represents a non-GAAP financial measure. See the tables within the
"Non-GAAP Financial Measures and Reconciliations" section for a
reconciliation of each non-GAAP measure to the most comparable GAAP
equivalent.
For the three months ended
--------------------------------------------------------------------------------------------------------------------------------
March 31, 2025 December 31, 2024 September 30, 2024 June 30, 2024 March 31, 2024
------------------------ ------------------------ ------------------------ ------------------------ ------------------------
Average Average Average Average Average Average Average Average Average Average
(In thousands) Balance Yield/Rate Balance Yield/Rate Balance Yield/Rate Balance Yield/Rate Balance Yield/Rate
---------- ------------ ---------- ------------ ---------- ------------ ---------- ------------ ---------- ------------
Interest Earning
Assets
Loans(1) 6,420,710 6.36% 6,481,701 6.51% 6,460,484 6.68% 6,384,709 6.63% 6,313,855 6.51%
Investment securities 501,809 3.53% 519,221 3.40% 527,241 3.60% 523,545 3.67% 546,960 3.30%
Interest-bearing cash
and other assets 500,857 4.37% 491,326 4.48% 442,632 5.14% 348,509 5.28% 239,508 5.52%
--------- ------ --- --------- ----- ---- --------- ----- ---- --------- ------ --- --------- ----- ----
Total earning
assets 7,423,376 6.03% 7,492,248 6.16% 7,430,357 6.37% 7,256,763 6.35% 7,100,323 6.23%
Other assets 548,976 542,862 534,740 548,465 548,642
--------- --------- --------- --------- ---------
Total assets $7,972,352 $8,035,110 $7,965,097 $7,805,228 $7,648,965
========= ========= ========= ========= =========
Interest-bearing
liabilities
Demand and NOW
deposits $ 720,700 3.21% $ 703,087 3.45% $ 657,537 3.73% $ 621,343 3.82% $ 549,491 3.56%
Savings deposits 400,801 0.58% 404,762 0.64% 411,526 0.71% 413,699 0.70% 421,882 0.69%
Money market deposits 2,441,737 2.19% 2,348,328 2.23% 2,140,552 2.24% 2,092,449 2.02% 2,063,321 1.94%
Certificates of
deposits 1,547,634 3.91% 1,589,721 4.08% 1,800,502 4.56% 1,823,522 4.71% 1,814,629 4.62%
--------- ------ --- --------- ----- ---- --------- ----- ---- --------- ------ --- --------- ----- ----
Total deposits 5,110,872 2.73% 5,045,898 2.85% 5,010,117 3.14% 4,951,013 3.13% 4,849,323 3.02%
Repurchase agreements 9,615 1.57% 10,964 1.45% 13,528 1.29% 16,553 1.16% 21,254 1.07%
--------- ------ --- --------- ----- ---- --------- ----- ---- --------- ------ --- --------- ----- ----
Total deposits and
repurchase
agreements 5,120,487 2.73% 5,056,862 2.85% 5,023,645 3.14% 4,967,566 3.12% 4,870,577 3.01%
FHLB borrowings 29,489 4.60% 121,957 5.02% 135,641 5.58% 130,871 5.70% 110,777 5.59%
Other long-term
borrowings 75,907 6.43% 75,778 6.41% 75,654 6.54% 75,522 6.62% 75,389 6.65%
--------- ------ --- --------- ----- ---- --------- ----- ---- --------- ------ --- --------- ----- ----
Total
interest-bearing
liabilities 5,225,883 2.79% 5,254,597 2.95% 5,234,940 3.25% 5,173,959 3.24% 5,056,743 3.12%
Noninterest-bearing
deposits 1,532,150 1,581,571 1,568,685 1,517,560 1,502,707
Other liabilities 155,337 152,552 141,206 133,845 134,370
Stockholders' equity 1,058,982 1,046,390 1,020,266 979,864 955,145
--------- --------- --------- --------- ---------
Total
liabilities
and
stockholders'
equity $7,972,352 $8,035,110 $7,965,097 $7,805,228 $7,648,965
========= ========= ========= ========= =========
Net interest spread 3.24% 3.21% 3.12% 3.11% 3.11%
Net interest margin 4.07% 4.09% 4.08% 4.04% 4.01%
Net interest margin
(on FTE basis)(2) 4.13% 4.15% 4.13% 4.10% 4.08%
(1) Includes loans held-for-investment, including nonaccrual loans, and
loans held-for-sale.
(2) Represents a non-GAAP financial measure. See the tables within the
"Non-GAAP Financial Measures and Reconciliations" section for a
reconciliation of each non-GAAP measure to the most comparable GAAP
equivalent.
Deposits as of:
March 31, December September June 30, March 31,
($ in thousands) 2025 31, 2024 30, 2024 2024 2024
---------- ---------- ---------- ---------- ----------
Consumer
Noninterest bearing
deposit accounts $ 412,734 $ 410,303 $ 397,880 $ 414,795 $ 356,732
Interest-bearing
deposit accounts:
Demand and NOW
deposits 93,675 61,987 61,929 42,903 38,625
Savings deposits 330,489 326,916 331,811 334,741 340,086
Money market
deposits 1,600,413 1,516,577 1,333,486 1,243,355 1,229,239
Certificates of
deposits 1,065,839 1,069,704 1,247,348 1,438,792 1,437,590
--------- --------- --------- --------- ---------
Total
interest-bearing
deposit
accounts 3,090,416 2,975,184 2,974,574 3,059,791 3,045,540
--------- --------- --------- --------- ---------
Total consumer
deposits $3,503,150 $3,385,487 $3,372,454 $3,474,586 $3,402,272
========= ========= ========= ========= =========
Business
Noninterest bearing
deposit accounts $1,162,002 $1,130,855 $1,156,882 $1,147,513 $1,160,583
Interest-bearing
deposit accounts:
Demand and NOW
deposits 654,914 669,417 624,952 538,016 502,726
Savings deposits 75,132 75,422 77,744 77,931 80,226
Money market
deposits 968,740 915,208 865,767 849,412 823,704
Certificates of
deposits 65,420 51,131 62,187 90,189 97,854
--------- --------- --------- --------- ---------
Total
interest-bearing
deposit
accounts 1,764,206 1,711,178 1,630,650 1,555,548 1,504,510
--------- --------- --------- --------- ---------
Total business
deposits $2,926,208 $2,842,033 $2,787,532 $2,703,061 $2,665,093
========= ========= ========= ========= =========
Wholesale deposits(1) $ 444,881 $ 444,740 $ 489,894 $ 441,878 $ 378,023
--------- --------- --------- --------- ---------
Total
deposits $6,874,239 $6,672,260 $6,649,880 $6,619,525 $6,445,388
========= ========= ========= ========= =========
(1) Wholesale deposits primarily consist of brokered deposits included in
our condensed consolidated balance sheets within certificates of
deposits.
Balance Sheet
Ratios as of:
March 31, December September June 30, March 31,
2025 31, 2024 30, 2024 2024 2024
--------- ---------- ----------- --------- ---------
Cash to total
assets(1) 7.50% 7.50% 6.90% 6.60% 4.80%
Loan to deposit
ratio 94.3% 95.6% 96.9% 95.7% 97.5%
Uninsured
deposits to
total
deposits(2) 35.2% 34.8% 32.7% 32.1% 32.0%
Uninsured and
uncollateralized
deposits to
total
deposits(2) 26.4% 25.2% 26.8% 25.5% 25.2%
Wholesale
deposits and
borrowings to
total
liabilities(3) 6.7% 8.2% 9.9% 8.4% 7.7%
(1) Cash consists of cash and amounts due from banks and interest-bearing
deposits with other financial institutions.
(2) Uninsured deposits and uninsured and uncollateralized deposits are
reported for our wholly-owned subsidiary Sunflower Bank, N.A. and are
estimated.
(3) Wholesale deposits primarily consist of brokered deposits included in
our condensed consolidated balance sheets within certificates of
deposits. Wholesale borrowings consist of FHLB overnight and term
advances.
Loan Portfolio as
of:
March 31, December September June 30, March 31,
($ in thousands) 2025 31, 2024 30, 2024 2024 2024
---------- ---------- ---------- ---------- ----------
Commercial and
industrial $2,635,028 $2,497,772 $2,527,636 $2,431,110 $2,480,078
Commercial real
estate:
Non-owner
occupied 733,949 752,861 821,670 866,999 836,515
Owner occupied 679,137 702,773 700,325 660,511 642,930
Construction
and land 386,056 362,677 333,457 350,878 326,447
Multifamily 85,239 94,355 95,125 94,220 94,898
--------- --------- --------- --------- ---------
Total
commercial
real estate 1,884,381 1,912,666 1,950,577 1,972,608 1,900,790
Residential real
estate 1,195,714 1,180,610 1,172,459 1,146,989 1,109,676
Public Finance 551,252 554,784 536,776 537,872 579,991
Consumer 39,096 41,345 45,267 42,129 40,317
Other 178,537 189,180 211,041 206,454 174,016
--------- --------- --------- --------- ---------
Total
loans, net
of
deferred
costs,
fees,
premiums,
and
discounts $6,484,008 $6,376,357 $6,443,756 $6,337,162 $6,284,868
========= ========= ========= ========= =========
Asset Quality:
As of and for the three months ended
----------------------------------------------------------------
March 31, December September June 30, March 31,
($ in thousands) 2025 31, 2024 30, 2024 2024 2024
----------- ----------- ------------ ----------- -----------
Net charge-offs
(recoveries) $ 631 $ (462) $ 1,401 $ 2,009 $17,429
Allowance for
credit losses $91,790 $88,221 $83,159 $78,960 $79,829
Nonperforming
loans, including
nonaccrual
loans, and
accrual loans
greater than 90
days past due $78,590 $69,050 $65,824 $62,558 $57,599
Nonperforming
assets $83,504 $74,188 $70,302 $67,055 $62,013
Ratio of net
charge-offs
(recoveries) to
average loans
outstanding 0.04% (0.03)% 0.09% 0.13% 1.12%
Allowance for
credit losses to
total loans
outstanding 1.42% 1.38% 1.29% 1.25% 1.27%
Allowance for
credit losses to
total
nonperforming
loans 116.80% 127.76% 126.34% 126.22% 138.59%
Nonperforming
loans to total
loans 1.21% 1.08% 1.02% 0.99% 0.92%
Nonperforming
assets to total
assets 1.02% 0.92% 0.86% 0.84% 0.80%
Non-GAAP Financial
Measures and
Reconciliations:
As of and for the three months ended
-----------------------------------------------------------------------------------
($ in thousands,
except share and per March 31, December 31, September 30, June 30, March 31,
share amounts) 2025 2024 2024 2024 2024
Tangible stockholders' equity to tangible assets:
Total stockholders'
equity (GAAP) $ 1,068,295 $ 1,041,366 $ 1,034,085 $ 996,599 $ 964,662
Less: Goodwill and
other intangible
assets
Goodwill (93,483) (93,483) (93,483) (93,483) (93,483)
Other intangible
assets (6,806) (7,434) (8,866) (9,517) (10,168)
---------- ---------- ---------- ---------- ----------
Tangible
stockholders'
equity
(non-GAAP) $ 968,006 $ 940,449 $ 931,736 $ 893,599 $ 861,011
========== ========== ========== ========== ==========
Total assets (GAAP) $ 8,216,458 $ 8,097,387 $ 8,138,487 $ 7,999,295 $ 7,781,601
Less: Goodwill and
other intangible
assets
Goodwill (93,483) (93,483) (93,483) (93,483) (93,483)
Other intangible
assets (6,806) (7,434) (8,866) (9,517) (10,168)
---------- ---------- ---------- ---------- ----------
Tangible
assets
(non-GAAP) $ 8,116,169 $ 7,996,470 $ 8,036,138 $ 7,896,295 $ 7,677,950
========== ========== ========== ========== ==========
Total stockholders'
equity to total
assets (GAAP) 13.00% 12.86% 12.71% 12.46% 12.40%
Less: Impact of
goodwill and
other intangible
assets (1.07)% (1.10)% (1.12)% (1.14)% (1.19)%
---------- ---------- ---------- ---------- ----------
Tangible
stockholders'
equity to
tangible assets
(non-GAAP) 11.93% 11.76% 11.59% 11.32% 11.21%
========== ========== ========== ========== ==========
Tangible stockholders' equity to tangible assets, reflecting net unrealized losses on HTM securities, net
of tax:
Tangible
stockholders'
equity (non-GAAP) $ 968,006 $ 940,449 $ 931,736 $ 893,599 $ 861,011
Less: Net
unrealized losses
on HTM
securities, net
of tax (3,803) (4,292) (2,852) (3,949) (4,236)
---------- ---------- ---------- ---------- ----------
Tangible
stockholders'
equity less net
unrealized
losses on HTM
securities, net
of tax
(non-GAAP) $ 964,203 $ 936,157 $ 928,884 $ 889,650 $ 856,775
========== ========== ========== ========== ==========
Tangible assets
(non-GAAP) $ 8,116,169 $ 7,996,470 $ 8,036,138 $ 7,896,295 $ 7,677,950
Less: Net
unrealized losses
on HTM
securities, net
of tax (3,803) (4,292) (2,852) (3,949) (4,236)
---------- ---------- ---------- ---------- ----------
Tangible assets
less net
unrealized
losses on HTM
securities, net
of tax
(non-GAAP) $ 8,112,366 $ 7,992,178 $ 8,033,286 $ 7,892,346 $ 7,673,714
========== ========== ========== ========== ==========
Tangible
stockholders'
equity to tangible
assets (non-GAAP) 11.93% 11.76% 11.59% 11.32% 11.21%
Less: Net
unrealized losses
on HTM
securities, net
of tax (0.04)% (0.05)% (0.03)% (0.05)% (0.04)%
---------- ---------- ---------- ---------- ----------
Tangible
stockholders'
equity to
tangible assets
reflecting net
unrealized
losses on HTM
securities, net
of tax
(non-GAAP) 11.89% 11.71% 11.56% 11.27% 11.17%
Tangible book value per share:
Total stockholders'
equity (GAAP) $ 1,068,295 $ 1,041,366 $ 1,034,085 $ 996,599 $ 964,662
Tangible
stockholders'
equity (non-GAAP) $ 968,006 $ 940,449 $ 931,736 $ 893,599 $ 861,011
Total shares
outstanding 27,753,918 27,709,679 27,665,918 27,443,246 27,442,943
Book value per share
(GAAP) $ 38.49 $ 37.58 $ 37.38 $ 36.31 $ 35.15
========== ========== ========== ========== ==========
Tangible book value
per share
(non-GAAP) $ 34.88 $ 33.94 $ 33.68 $ 32.56 $ 31.37
========== ========== ========== ========== ==========
Adjusted net income:
Net income (GAAP) $ 23,569 $ 16,350 $ 22,422 $ 24,560 $ 12,296
Add: Non-recurring
adjustments:
Terminated
merger related
expenses, net
of tax -- 5,799 1,233 621 2,296
Write-off of
Guardian
Mortgage
tradename, net
of tax -- 625 -- -- --
Disposal of
ATMs, net of
tax -- 1,542 -- -- --
---------- ---------- ---------- ---------- ----------
Total
adjustments,
net of tax -- 7,966 1,233 621 2,296
---------- ---------- ---------- ---------- ----------
Adjusted net
income
(non-GAAP) $ 23,569 $ 24,316 $ 23,655 $ 25,181 $ 14,592
========== ========== ========== ========== ==========
Adjusted diluted earnings per share:
Diluted earnings per
share (GAAP) $ 0.83 $ 0.58 $ 0.79 $ 0.88 $ 0.45
Add: Impact of
non-recurring
adjustments:
Terminated
merger related
expenses, net
of tax -- 0.21 0.05 0.02 0.08
Write-off of
Guardian
Mortgage
tradename, net
of tax -- 0.02 -- -- --
Disposal of
ATMs, net of
tax -- 0.05 -- -- --
---------- ---------- ---------- ---------- ----------
Adjusted
diluted
earnings per
share
(non-GAAP) $ 0.83 $ 0.86 $ 0.84 $ 0.90 $ 0.53
========== ========== ========== ========== ==========
Adjusted return on average total assets:
Return on average
total assets (ROAA)
(GAAP) 1.20% 0.81% 1.12% 1.27% 0.65%
Add: Impact of
non-recurring
adjustments:
Terminated
merger related
expenses, net
of tax --% 0.28% 0.06% 0.03% 0.12%
Write-off of
Guardian
Mortgage
tradename, net
of tax --% 0.03% --% --% --%
Disposal of
ATMs, net of
tax --% 0.08% --% --% --%
---------- ---------- ---------- ---------- ----------
Adjusted ROAA
(non-GAAP) 1.20% 1.20% 1.18% 1.30% 0.77%
Adjusted return on average stockholders' equity:
Return on average
stockholders'
equity (ROACE)
(GAAP) 9.03% 6.22% 8.74% 10.08% 5.18%
Add: Impact of
non-recurring
adjustments:
Terminated
merger related
expenses, net
of tax --% 2.19% 0.48% 0.26% 0.96%
Write-off of
Guardian
Mortgage
tradename, net
of tax --% 0.24% --% --% --%
Disposal of
ATMs, net of
tax --% 0.59% --% --% --%
---------- ---------- ---------- ---------- ----------
Adjusted ROACE
(non-GAAP) 9.03% 9.24% 9.22% 10.34% 6.14%
========== ========== ========== ========== ==========
Return on average tangible stockholders' equity
Return on average
stockholders'
equity (ROACE)
(GAAP) 9.03% 6.22% 8.74% 10.08% 5.18%
Add: Impact from
goodwill and other
intangible
assets:
Goodwill 0.94% 0.67% 0.98% 1.19% 0.63%
Other intangible
assets 0.21% 0.47% 0.22% 0.24% 0.30%
---------- ---------- ---------- ---------- ----------
Return on
average
tangible
stockholders'
equity
(ROATCE)
(non-GAAP) 10.18% 7.36% 9.94% 11.51% 6.11%
========== ========== ========== ========== ==========
Adjusted return on average tangible stockholders' equity:
Return on average
tangible
stockholders'
equity (ROATCE)
(non-GAAP) 10.18% 7.36% 9.94% 11.51% 6.11%
Add: Impact of
non-recurring
adjustments:
Terminated
merger related
expenses, net
of tax --% 2.45% 0.54% 0.28% 1.09%
Write-off of
Guardian
Mortgage
tradename, net
of tax --% 0.26% --% --% --%
Disposal of
ATMs, net of
tax --% 0.65% --% --% --%
---------- ---------- ---------- ---------- ----------
Adjusted
ROATCE
(non-GAAP) 10.18% 10.72% 10.48% 11.79% 7.20%
========== ========== ========== ========== ==========
Adjusted total noninterest expense:
Total noninterest
expense (GAAP) $ 62,722 $ 73,673 $ 64,664 $ 63,875 $ 61,828
Less:
Non-recurring
adjustments:
Terminated
merger related
expenses -- (8,010) (1,633) (1,046) (2,489)
Write-off of
Guardian
Mortgage trade
name -- (828) -- -- --
Disposal of ATMs -- (2,042) -- -- --
---------- ---------- ---------- ---------- ----------
Total
adjustments -- (10,880) (1,633) (1,046) (2,489)
---------- ---------- ---------- ---------- ----------
Adjusted total
noninterest
expense
(non-GAAP) $ 62,722 $ 62,793 $ 63,031 $ 62,829 $ 59,339
========== ========== ========== ========== ==========
Adjusted efficiency ratio:
Efficiency ratio
(GAAP) 65.19% 74.66% 65.83% 66.42% 66.05%
Less: Impact of
non-recurring
adjustments:
Terminated
merger related
expenses --% (8.12)% (1.67)% (1.09)% (2.66)%
Write-off of
Guardian
Mortgage
tradename --% (0.84)% --% --% --%
Disposal of ATMs --% (2.07)% --% --% --%
---------- ---------- ---------- ---------- ----------
Adjusted
efficiency
ratio
(non-GAAP) 65.19% 63.63% 64.16% 65.33% 63.39%
Fully tax equivalent ("FTE") net interest income and net interest margin:
Net interest income
(GAAP) $ 74,478 $ 77,047 $ 76,158 $ 72,899 $ 70,806
Gross income effect
of tax exempt
income 1,192 1,161 1,132 1,156 1,318
---------- ---------- ---------- ---------- ----------
FTE net interest
income
(non-GAAP) $ 75,670 $ 78,208 $ 77,290 $ 74,055 $ 72,124
========== ========== ========== ========== ==========
Average earning
assets $ 7,423,376 $ 7,492,248 $ 7,430,357 $ 7,256,763 $ 7,100,323
Net interest margin 4.07% 4.09% 4.08% 4.04% 4.01%
========== ========== ========== ========== ==========
Net interest margin
on FTE basis
(non-GAAP) 4.13% 4.15% 4.13% 4.10% 4.08%
========== ========== ========== ========== ==========
View source version on businesswire.com: https://www.businesswire.com/news/home/20250425252618/en/
CONTACT: Investor Contact:
Ed Jacques
Director of Investor Relations & Business Development, FirstSun
Investor.Relations@firstsuncb.com
(MORE TO FOLLOW) Dow Jones Newswires
April 28, 2025 16:00 ET (20:00 GMT)
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