FirstSun Capital Bancorp Reports Third Quarter 2026 Results

FirstSun Capital Bancorp (“FirstSun”) (NASDAQ: FSUN) reported net income of $38.4 million in the third quarter of 2026 compared to net income of $23.2 million in the third quarter of 2025. Earnings per diluted share were $0.82 in both the third quarter of 2026 and 2025. Adjusted net income, a non-GAAP financial measure, was $48.2 million or $1.03 per diluted share in the third quarter of 2026 compared to $23.4 million or $0.83 per diluted share in the third quarter of 2025. See “Non-GAAP Financial Measures and Reconciliations” below.

Neal Arnold, FirstSun’s Chief Executive Officer and President, commented, “Third quarter results reflect our continued progress on our strategic priorities highlighted by an improved net interest margin as a result of continued balance sheet improvements, a strong diversified revenue profile and improved earnings performance, including benefits from operating synergies realized following the acquisition of First Foundation in the second quarter. We believe our relationship-based business model, our presence in some of the stronger economic growth markets in the country and our disciplined focus on a balanced risk profile position us for continued success.

“Additionally, in late September, we successfully completed the core system conversion of First Foundation, representing another important milestone in our overall integration plan. I’m extremely proud of our teammates for all the hard work, planning and collaboration in completing the conversion while continuing to serve our great clients throughout the process. We remain focused on continuing to grow our franchise and delivering strong financial results and sustainable long-term value for our stockholders.”

Third Quarter 2026 Results

Net income totaled $38.4 million, or $0.82 per diluted share, in the third quarter of 2026, compared to a net loss of $22.9 million, or $0.49 per diluted share, in the prior quarter. Adjusted net income, a non-GAAP financial measure, totaled $48.2 million, or $1.03 per diluted share, in the third quarter of 2026, compared to $21.0 million, or $0.45 per diluted share, in the prior quarter.

Return on average total assets was 0.98% in the third quarter of 2026, compared to (0.54)% in the prior quarter, and return on average stockholders’ equity was 8.23% in the third quarter of 2026, compared to (4.92)% in the prior quarter. Adjusted return on average total assets and adjusted return on average stockholders’ equity, each a non-GAAP financial measure, were 1.23% and 10.33% respectively in the third quarter of 2026 compared to 0.50% and 4.52%, respectively, in the prior quarter.

Net Interest Income and Net Interest Margin

Net interest income totaled $140.3 million in the third quarter of 2026, a decrease of $2.9 million compared to the prior quarter. Our net interest margin increased 24 basis points to 3.82% compared to the prior quarter. Average loans, including loans held-for-sale, decreased by $1.0 billion in the third quarter of 2026, compared to the prior quarter, primarily due to the sale of $1.3 billion in loans late in the second quarter of 2026, a component of our merger-related balance sheet repositioning strategy. Loan yield increased by 17 basis points to 6.33% in the third quarter of 2026, compared to the prior quarter, primarily due to the loan sales in the second quarter of 2026, comprised of lower-yielding multifamily and public finance loans acquired from First Foundation, and the rising interest rate environment and its impact on variable rate loans in the loan portfolio. Average investment securities decreased by $0.2 billion in the third quarter of 2026, compared to the prior quarter, primarily due to the sale of $1.4 billion in securities in the second quarter of 2026, a component of our merger-related balance sheet repositioning strategy. Investment securities yield decreased by 28 basis points to 4.52% in the third quarter of 2026, compared to the prior quarter, primarily reflecting lower purchase accounting discount accretion. Average interest-bearing cash and other assets decreased by $229.2 million in the third quarter of 2026, compared to the prior quarter. Interest-bearing cash and other assets yield increased by 29 basis points to 3.49% in the third quarter of 2026, compared to the prior quarter, primarily reflecting an increase in yield on cash on deposit at the Federal Reserve and an increase in dividends received from the Federal Home Loan Bank.

Average interest-bearing deposits decreased $1.3 billion in the third quarter of 2026, compared to the prior quarter, primarily due to the reduction of $2.5 billion in deposits in the second quarter of 2026, a component of our merger-related balance sheet repositioning strategy. Total cost of interest-bearing deposits decreased by two basis points to 2.75% in the third quarter of 2026, compared to the prior quarter, due primarily to the disposition of higher-cost certificates of deposit acquired from First Foundation.

Asset Quality and Provision for Credit Losses

The provision for credit losses totaled $4.4 million in the third quarter of 2026, primarily reflecting specific reserves established for two CRE loans, partially offset by a decrease in the loan portfolio, compared to a provision for credit losses of $40.4 million in the second quarter of 2026. The provision for credit losses in the second quarter of 2026 primarily reflected the downgrades and write-downs of two C&I lending relationships.

Net charge-offs totaled $3.3 million, or 0.11% of average loans on an annualized basis, in the third quarter of 2026, primarily related to one C&I lending relationship and one multifamily relationship, both acquired from First Foundation, compared to net charge-offs of $42.4 million or 1.45% of average loans on an annualized basis, in the second quarter of 2026.

The allowance for credit losses as a percentage of loans outstanding was 1.52% at September 30, 2026, an increase of two basis points from the prior quarter. The ratio of nonperforming assets to total assets was 1.46% at September 30, 2026, compared to 1.32% at June 30, 2026.

Noninterest Income

Noninterest income totaled $39.4 million in the third quarter of 2026, a decrease of $1.6 million from the prior quarter. Income from mortgage banking services decreased $3.2 million in the third quarter of 2026 from the prior quarter, primarily due to a decrease in loan originations sold, as well as a decrease in income resulting from changes in MSR fair value, net of hedging. Other noninterest income increased $1.0 million in the third quarter of 2026 compared to the prior quarter, primarily driven by higher swap and loan syndication revenue. The increase in other noninterest income from swap and loan syndication revenue in the third quarter of 2026, was partially offset by the combined impact of a decline in the fair value of investments associated with our deferred compensation plan and lower OREO property losses.

Noninterest income as a percentage of total revenue¹ was 21.9% for the third quarter of 2026, a decrease of 0.3% from the prior quarter.

Noninterest Expense

Noninterest expense totaled $126.6 million in the third quarter of 2026, a decrease of $45.2 million from the prior quarter. Merger related expenses decreased $44.3 million in the third quarter of 2026 from the prior quarter. Salary and employee benefits decreased $5.4 million in the third quarter of 2026 from the prior quarter, primarily due to merger-related workforce reductions and a lower expense impact resulting from a decline in the fair value of investments associated with our deferred compensation plan. Other noninterest expense increased $4.5 million in the third quarter of 2026 compared to the prior quarter, primarily driven by higher loan collection expenses.

The efficiency ratio in the third quarter of 2026 was 70.43% compared to 93.25% in the prior quarter. The adjusted efficiency ratio, a non-GAAP financial measure, was 63.06% in the third quarter of 2026 compared to 61.99% in the prior quarter.

Tax Rate

The effective tax rate was 21.2% in the third quarter of 2026, compared to 18.3% in the prior quarter.

Loans

Loans decreased to $11.5 billion at September 30, 2026, from $11.6 billion at June 30, 2026, reflecting an annualized decline of 3.8%. The decrease was primarily attributable to paydowns in commercial real estate loans, notably multifamily, non-owner occupied, and owner-occupied properties, as well as lower public finance loan balances, partially offset by increased C&I loans.

Deposits

Deposits were $13.0 billion at September 30, 2026, compared to $13.4 billion at June 30, 2026, a decrease of $0.4 billion in the third quarter of 2026, or 13.2% on an annualized basis, primarily due to a decrease in money market and savings deposits and certificates of deposit, partially offset by an increase in demand and NOW deposits.

Average deposits were $13.2 billion for the third quarter of 2026, compared to $14.5 billion for the prior quarter, a decrease of $1.3 billion or 35.0% on an annualized basis, primarily due to a decrease in certificates of deposit, a component of our merger-related balance sheet repositioning strategy.

Noninterest-bearing deposit accounts represented 20.6% of total deposits at September 30, 2026 and our loan to deposit ratio was 88.3% at September 30, 2026.

The ratio of total uninsured deposits to total deposits was estimated to be 33.2% at September 30, 2026. The ratio of total uninsured and uncollateralized deposits to total deposits was estimated to be 25.8% at September 30, 2026².

Capital

As of September 30, 2026, FirstSun’s common equity tier 1 risk-based capital ratio was 11.99%, total risk-based capital ratio was 14.29% and tier 1 leverage ratio was 10.33%. Our capital ratios remain strong and exceeded the levels required to be considered well capitalized. Book value per share was $39.75 at September 30, 2026, an increase of $0.46 from June 30, 2026. Tangible book value per share, a non-GAAP financial measure, was $35.60 at September 30, 2026, an increase of $0.44 from June 30, 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;

• Tangible net income;

• 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 margin³.

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 $15.3 billion as of September 30, 2026.

To learn more, visit ir.firstsuncb.com or SunflowerBank.com.

Investor Earnings Conference Call

FirstSun will host a conference call on Tuesday, October 27, 2026 at 11:00 a.m. (ET) to discuss its third quarter 2026 financial results.

Participants may join by phone by dialing (833) 461-5787 for toll-free within the U.S. and (585) 542-9983 for all other locations. The conference Meeting ID is 141121855. 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.

Certain insured reciprocal deposits acquired in the First Foundation acquisition were reclassified from savings deposits to money market deposits as of June 30, 2026, to conform to the current presentation.

Additionally, in conjunction with the integration of First Foundation, certain deposit products were converted from money market accounts to interest bearing demand accounts in the third quarter of 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 the impact of our acquisition of First Foundation and our completion of the related balance sheet repositioning strategy, our relationship-based business model, our markets, our risk profile, our ability to drive growth, that we are well positioned for continued success, and our ability to deliver strong financial results and sustainable long-term stockholder value. 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 changes 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 operations; 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 integration of the First Foundation merger; credit risk in our loan portfolio; and 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.

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Condensed Consolidated Statements of Income (Unaudited):

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Condensed Consolidated Balance Sheets as of (Unaudited):

Consolidated Capital Ratios as of:

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Summary of Net Interest Margin (cont’d ):