FirstSun Capital Bancorp 8K Reports Second Quarter 2024 Results | FSUN 29 Jul 24

FirstSun Capital Bancorp Reports Second Quarter 2024 Results

Second Quarter 2024 Highlights:

•Net income of $24.6 million, $0.88 per diluted share (excluding merger costs, $25.2 million, $0.90 per diluted share, see the “Non-GAAP Financial Measures and Reconciliations” below)

•Net interest margin of 4.02%

•Return on average total assets of 1.26% (excluding merger costs, 1.29%, see the “Non-GAAP Financial Measures and Reconciliations” below)

•Return on average stockholders’ equity of 10.03% (excluding merger costs, 10.28%, see the “Non-GAAP Financial Measures and Reconciliations” below)

•Loan growth of 3.3% annualized

•Deposit growth of 10.8% annualized

•24.2% noninterest income to total revenue1

Denver, Colorado – July 29, 2024 – FirstSun Capital Bancorp (“FirstSun”) (NASDAQ: FSUN) reported net income of $24.6 million for the second quarter of 2024 compared to net income of $28.0 million for the second quarter of 2023. Earnings per diluted share were $0.88 for the second quarter of 2024 compared to $1.11 for the second quarter of 2023. Earnings for the second quarter of 2024 were negatively impacted by $0.6 million of merger costs, net of tax, or $0.02 per diluted share.

Neal Arnold, FirstSun’s President and Chief Executive Officer, commented, “We are pleased to deliver strong earnings this quarter driven by our well diversified business mix. Our net interest margin remains very strong at 4.02%, we grew our deposits and loans and we maintained our balanced mix of business with noninterest income to total revenue at 24.2%.”

Arnold continued, “We continue to work actively on all aspects of planning for the consummation of the previously announced strategic merger with HomeStreet, Inc. and we remain focused on continuing to deliver responsible growth amidst the challenging operating environment. We also remain focused on enhancing shareholder value and are very excited to announce a significant milestone in uplisting to Nasdaq on July 12, 2024 which we expect will provide us better access to the capital markets.”

Second Quarter 2024 Results

Net income totaled $24.6 million, or $0.88 per diluted share, for the second quarter of 2024, compared to $12.3 million, or $0.45 per diluted share, for the prior quarter. Net income in the second quarter of 2024 was negatively impacted by $0.6 million in merger costs, net of tax, or $0.02 per diluted share. Net income in the first quarter of 2024 was negatively impacted by a $13.1 million loan charge-off, net of tax, or $0.47 per diluted share, and $2.3 million in merger costs, net of tax, or $0.08 per diluted share. The return on average total assets was 1.26% for the second quarter of 2024, compared to 0.64% for the prior quarter, and the return on average stockholders’ equity was 10.03% for the second quarter of 2024, compared to 5.15% for the prior quarter. Second quarter of 2024 merger costs, net of tax negatively affected return on average total assets by 0.03% and return on average stockholders’ equity by 0.25%. First quarter of 2024 merger costs, net of tax negatively affected return on average total assets by 0.12% and return on average stockholders’ equity by 0.96%.

1 Total revenue is net interest income plus noninterest income.

Net Interest Income and Net Interest Margin

Net interest income totaled $72.9 million for the second quarter of 2024, an increase of $2.1 million compared to the prior quarter. Our net interest margin increased three basis points to 4.02% compared to the prior quarter. Results for the second quarter of 2024, compared to the prior quarter, were primarily driven by an increase of 11 basis points in the yield on earning assets, partially offset by an increase of 12 basis points in the cost of interest-bearing liabilities.

Average loans, including loans held-for-sale, increased by $70.9 million in the second quarter of 2024, compared to the prior quarter. Loan yield increased by 11 basis points to 6.59% in the second quarter of 2024, compared to the prior quarter, primarily due to higher yields on new originations as compared to amortizing and maturing balances. Average interest-bearing deposits increased $101.7 million in the second quarter of 2024, compared to the prior quarter. Total cost of interest-bearing deposits increased by 11 basis points to 3.11% in the second quarter of 2024, compared to the prior quarter, primarily due to overall rising deposit costs as a result of the elevated interest rate environment. Average FHLB borrowings increased $20.1 million in the second quarter of 2024, compared to the prior quarter. The cost of FHLB borrowings increased by 11 basis points to 5.67% in the second quarter of 2024, compared to the prior quarter.

Asset Quality and Provision for Credit Losses

The provision for credit losses totaled $1.2 million for the second quarter of 2024, a decrease of $15.3 million from $16.5 million for the prior quarter, primarily due to a $17.4 million charge-off on a specific customer in our C&I loan portfolio for the prior quarter.

Net charge-offs for the second quarter of 2024 were $2.0 million resulting in an annualized ratio of net charge-offs to average loans of 0.13%, compared to net charge-offs of $17.4 million, or an annualized ratio of net-charge offs to average loans of 1.11% for the prior quarter. The allowance for credit losses as a percentage of total loans was 1.25% at June 30, 2024, a decrease of two basis points from the prior quarter.

The ratio of nonperforming assets to total assets was 0.84% at June 30, 2024, compared to 0.80% at March 31, 2024.

Noninterest Income

Noninterest income totaled $23.3 million for the second quarter of 2024, an increase of $0.5 million from the prior quarter. Mortgage banking income increased $1.5 million for the second quarter of 2024, primarily due to an increase in mortgage loan originations, including the corresponding impact to our capitalized MSR asset from the prior quarter.

Other noninterest income decreased $1.5 million for the second quarter of 2024, primarily due to a decrease in income from BOLI and a decrease in the fair value of investments related to our deferred compensation plan. Noninterest income as a percentage of total revenue2 was 24.2%, an increase of 0.2% from the prior quarter.

Noninterest Expense

Noninterest expense totaled $63.9 million for the second quarter of 2024, an increase of $2.0 million from the prior quarter, primarily due to an increase in salary and employee benefits of $2.5 million as a result of increased head count of C&I bankers and higher levels of variable compensation associated with an increase in mortgage loan originations. Noninterest expense for the second quarter of 2024 included $1.0 million in merger related expenses, a decrease of $1.4 million from the prior quarter.

The efficiency ratio for the second quarter of 2024 was 66.42% compared to 66.05% for the prior quarter. Merger costs negatively affected the efficiency ratio for the second quarter of 2024 by 1.09%, down from a negative impact of 2.66% for the prior quarter.

2 Total revenue is net interest income plus noninterest income.

Tax Rate

The effective tax rate was 21.0% for the second quarter of 2024, compared to 19.6% for the prior quarter.

Loans

Loans were $6.3 billion at June 30, 2024 and March 31, 2024, increasing $52.3 million in the second quarter of 2024, or 3.3% on an annualized basis.

Deposits

Deposits were $6.6 billion at June 30, 2024 compared to $6.4 billion at March 31, 2024, an increase of $0.2 billion in the second quarter of 2024, or 10.8% on an annualized basis. Average deposits were $6.5 billion for the second quarter of 2024, compared to $6.4 billion for the prior quarter, an increase of $0.1 billion in the second quarter of 2024, or 7.3% on an annualized basis. Noninterest-bearing deposit accounts represented 23.6% of total deposits at June 30, 2024 and the loan-to-deposit ratio was 95.7% at June 30, 2024.

The ratio of total uninsured deposits to total deposits was estimated to be 32.1% at June 30, 2024, compared to 32.0% at March 31, 2024. The ratio of total uninsured and uncollateralized deposits to total deposits was estimated to be 25.5% at June 30, 2024, compared to 25.2% at March 31, 2024.3

Capital

Capital ratios remain strong and above “well-capitalized” thresholds. As of June 30, 2024, our common equity tier 1 risk-based capital ratio was 12.80%, total risk-based capital ratio was 14.95% and tier 1 leverage ratio was 11.83%. Book value per share was $36.31 at June 30, 2024, an increase of $1.16 from March 31, 2024. Tangible book value per share, a non-GAAP financial measure, was $32.56 at June 30, 2024, an increase of $1.19 from March 31, 2024.

3 Uninsured deposits and uninsured and uncollateralized deposits are reported for our wholly-owned subsidiary Sunflower Bank, N.A.

Non-GAAP Financial Measures

This press release (including the tables beginning on page 15) 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;

•Tangible assets;

•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;

•Net income excluding merger costs;

•Return on average total assets excluding merger costs;

•Return on average stockholders’ equity excluding merger costs;

•Efficiency ratio excluding merger related expenses;

•Diluted earnings per share excluding merger related costs; and

•Fully tax equivalent (“FTE”) net interest income and net interest margin on FTE basis.

The tables beginning on page 15 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. Sunflower Bank provides a full range of relationship-focused services to meet personal, business and wealth management financial objectives, with a branch network in five states and mortgage capabilities in 43 states. FirstSun had total consolidated assets of $8.0 billion as of June 30, 2024.

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.

Summary Data:


	As of and for the quarter ended
($ in thousands, except per share amounts)	June 30, 2024			March 31, 2024			December 31, 2023			September 30, 2023			June 30, 2023
Net interest income	$	72,899		$	70,806		$	72,069		$	73,410		$	73,835
Provision for credit losses	1,200			16,500			6,575			3,890			4,422
Noninterest income	23,274			22,808			17,221			18,650			24,290
Noninterest expense	63,875			61,828			52,308			56,176			58,043
Income before income taxes	31,098			15,286			30,407			31,994			35,660
Provision for income taxes	6,538			2,990			6,393			6,762			7,654
Net income	24,560			12,296			24,014			25,232			28,006
Net income, excluding merger costs (1)	25,181			14,592			24,014			25,232			28,006
Weighted average common shares outstanding, basic	27,430,761			27,019,625			24,953,764			24,942,389			24,933,664
Weighted average common shares outstanding, diluted	28,031,956			27,628,941			25,472,017			25,357,807			25,206,359
Diluted earnings per share	$	0.88		$	0.45		$	0.94		$	1.00		$	1.11
Diluted earnings per share, excluding merger costs (1)	$	0.90		$	0.53		$	0.94		$	1.00		$	1.11
Return on average total assets	1.26		%	0.64		%	1.26		%	1.34		%	1.49		%
Return on average total assets, excluding merger costs (1)	1.29		%	0.76		%	1.26		%	1.34		%	1.49		%
Return on average stockholders' equity	10.03		%	5.15		%	11.19		%	12.03		%	13.54		%
Return on average stockholders’ equity, excluding merger costs (1)	10.28		%	6.11		%	11.19		%	12.03		%	13.54		%
Net interest margin	4.02		%	3.99		%	4.08		%	4.23		%	4.24		%
Net interest margin (FTE basis) (1)	4.08		%	4.06		%	4.15		%	4.30		%	4.32		%
Efficiency ratio	66.42		%	66.05		%	58.58		%	61.02		%	59.15		%
Efficiency ratio, excluding merger related expenses (1)	65.33		%	63.39		%	58.58		%	61.02		%	59.15		%
Noninterest income to total revenue (2)	24.2		%	24.4		%	19.3		%	20.3		%	24.8		%
Total assets	$	7,999,295		$	7,781,601		$	7,879,724		$	7,756,875		$	7,797,344
Total loans held-for-sale	66,571			56,813			54,212			51,465			56,350
Total loans held-for-investment	6,337,162			6,284,868			6,267,096			6,179,522			6,155,090
Total deposits	6,619,525			6,445,388			6,374,103			6,339,847			6,150,418
Total stockholders' equity	996,599			964,662			877,197			843,719			823,635
Loan to deposit ratio	95.7		%	97.5		%	98.3		%	97.5		%	100.1		%
Period end common shares outstanding	27,443,246			27,442,943			24,960,639			24,942,645			24,941,468
Book value per share	$	36.31		$	35.15		$	35.14		$	33.83		$	33.02
Tangible book value per share (1)	$	32.56		$	31.37		$	30.96		$	29.60		$	28.76
(1) Represents a non-GAAP financial measure. See the tables beginning on page 15 for a reconciliation of each non-GAAP measure to the most comparable GAAP equivalent.
(2) Total revenue is net interest income plus noninterest income.


	As of and for the six months ended
($ in thousands, except per share amounts)		June 30, 2024			June 30, 2023
Net interest income		$	143,705		$	147,952
Provision for credit losses		17,700			7,782
Noninterest income		46,082			43,221
Noninterest expense		125,703			114,309
Income before income taxes		46,384			69,082
Provision for income taxes		9,528			14,795
Net income		36,856			54,287
Net income, excluding merger costs (1)		39,773			54,287
Weighted average common shares outstanding, basic		27,224,968			24,928,485
Weighted average common shares outstanding, diluted		27,825,189			25,368,702
Diluted earnings per share		$	1.32		$	2.14
Diluted earnings per share, excluding merger costs (1)		$	1.43		$	2.14
Return on average total assets		0.95		%	1.46		%
Return on average total assets, excluding merger costs (1)		1.03		%	1.46		%
Return on average stockholders' equity		7.62		%	13.46		%
Return on average stockholders’ equity, excluding merger costs (1)		8.22		%	13.46		%
Net interest margin		4.00		%	4.31		%
Net interest margin (FTE basis) (1)		4.07		%	4.39		%
Efficiency ratio		66.23		%	59.79		%
Efficiency ratio, excluding merger related expenses (1)		64.37		%	59.79		%
Noninterest income to total revenue (2)		24.3		%	22.6		%
Total assets		$	7,999,295		$	7,797,344
Total loans held-for-sale		66,571			56,350
Total loans held-for-investment		6,337,162			6,155,090
Total deposits		6,619,525			6,150,418
Total stockholders' equity		996,599			823,635
Loan to deposit ratio		95.7		%	100.1		%
Period end common shares outstanding		27,443,246			24,941,468
Book value per share		$	36.31		$	33.02
Tangible book value per share (1)		$	32.56		$	28.76
(1) Represents a non-GAAP financial measure. See the tables beginning on page 15 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 quarter ended		For the six months ended
($ in thousands, except per share amounts)	June 30, 2024			June 30, 2023		June 30, 2024		June 30, 2023
Total interest income	$	114,529		$	102,032	$	224,569	$	196,935
Total interest expense	41,630			28,197		80,864		48,983
Net interest income	72,899			73,835		143,705		147,952
Provision for credit losses	1,200			4,422		17,700		7,782
Net interest income after provision for credit losses	71,699			69,413		126,005		140,170
Noninterest income:
Service charges on deposits	5,946			5,358		11,714		10,373
Credit and debit card fees	3,007			3,057		5,810		6,038
Trust and investment advisory fees	1,493			1,478		2,956		2,939
Mortgage banking income, net	11,043			11,659		20,545		19,088
Other noninterest income	1,785			2,738		5,057		4,783
Total noninterest income	23,274			24,290		46,082		43,221
Noninterest expense:
Salaries and benefits	39,828			34,056		77,181		69,105
Occupancy and equipment	8,701			8,135		17,296		16,490
Amortization of intangible assets	652			2,050		1,467		3,094
Merger related expenses	1,046			—		3,535		—
Other noninterest expenses	13,648			13,802		26,224		25,620
Total noninterest expense	63,875			58,043		125,703		114,309
Income before income taxes	31,098			35,660		46,384		69,082
Provision for income taxes	6,538			7,654		9,528		14,795
Net income	$	24,560		$	28,006	$	36,856	$	54,287
Earnings per share - basic	$	0.90		$	1.12	$	1.35	$	2.18
Earnings per share - diluted	$	0.88		$	1.11	$	1.32	$	2.14


	For the quarter ended
($ in thousands, except per share amounts)	June 30, 2024		March 31, 2024		December 31, 2023		September 30, 2023		June 30, 2023
Total interest income	$	114,529	$	110,040	$	109,974	$	106,775	$	102,032
Total interest expense	41,630		39,234		37,905		33,365		28,197
Net interest income	72,899		70,806		72,069		73,410		73,835
Provision for credit losses	1,200		16,500		6,575		3,890		4,422
Net interest income after provision for credit losses	71,699		54,306		65,494		69,520		69,413
Noninterest income:
Service charges on deposits	5,946		5,768		5,497		5,475		5,358
Credit and debit card fees	3,007		2,803		2,966		2,996		3,057
Trust and investment advisory fees	1,493		1,463		1,356		1,398		1,478
Mortgage banking income, net	11,043		9,502		4,883		7,413		11,659
Other noninterest income	1,785		3,272		2,519		1,368		2,738
Total noninterest income	23,274		22,808		17,221		18,650		24,290
Noninterest expense:
Salaries and benefits	39,828		37,353		30,158		33,968		34,056
Occupancy and equipment	8,701		8,595		8,449		8,487		8,135
Amortization of intangible assets	652		815		829		899		2,050
Merger related expenses	1,046		2,489		—		—		—
Other noninterest expenses	13,648		12,576		12,872		12,822		13,802
Total noninterest expense	63,875		61,828		52,308		56,176		58,043
Income before income taxes	31,098		15,286		30,407		31,994		35,660
Provision for income taxes	6,538		2,990		6,393		6,762		7,654
Net income	$	24,560	$	12,296	$	24,014	$	25,232	$	28,006
Earnings per share - basic	$	0.90	$	0.46	$	0.96	$	1.01	$	1.12
Earnings per share - diluted	$	0.88	$	0.45	$	0.94	$	1.00	$	1.11

Condensed Consolidated Balance Sheets as of (Unaudited):


($ in thousands)	June 30, 2024		March 31, 2024		December 31, 2023		September 30, 2023		June 30, 2023
Assets
Cash and cash equivalents	$	535,766	$	383,605	$	479,362	$	443,887	$	492,735
Securities available-for-sale, at fair value	491,649		499,078		516,757		495,992		515,956
Securities held-to-maturity	36,310		36,640		36,983		37,410		37,883
Loans held-for-sale, at fair value	66,571		56,813		54,212		51,465		56,350
Loans	6,337,162		6,284,868		6,267,096		6,179,522		6,155,090
Allowance for credit losses	(78,960)		(79,829)		(80,398)		(78,666)		(77,362)
Loans, net	6,258,202		6,205,039		6,186,698		6,100,856		6,077,728
Mortgage servicing rights, at fair value	80,744		78,416		76,701		81,036		78,390
Premises and equipment, net	83,320		84,063		84,842		83,733		84,483
Other real estate owned and foreclosed assets, net	4,497		4,414		4,100		8,395		10,139
Goodwill	93,483		93,483		93,483		93,483		93,483
Intangible assets, net	9,517		10,168		10,984		11,813		12,712
All other assets	339,236		329,882		335,602		348,805		337,485
Total assets	$	7,999,295	$	7,781,601	$	7,879,724	$	7,756,875	$	7,797,344
Liabilities and Stockholders' Equity
Liabilities:
Deposits:
Noninterest-bearing demand deposit accounts	$	1,562,308	$	1,517,315	$	1,530,506	$	1,610,650	$	1,667,247
Interest-bearing deposit accounts:
Interest-bearing demand accounts	538,232		542,184		534,540		440,845		379,779
Savings and money market accounts	2,505,439		2,473,255		2,446,632		2,476,097		2,441,349
NOW accounts	42,687		39,181		56,819		35,686		48,270
Certificate of deposit accounts	1,970,859		1,873,453		1,805,606		1,776,569		1,613,773
Total deposits	6,619,525		6,445,388		6,374,103		6,339,847		6,150,418
Securities sold under agreements to repurchase	20,408		20,423		24,693		25,868		32,861
Federal Home Loan Bank advances	145,000		144,810		389,468		330,000		570,585
Other borrowings	75,577		75,445		75,313		75,180		80,511
Other liabilities	142,186		130,873		138,950		142,261		139,334
Total liabilities	7,002,696		6,816,939		7,002,527		6,913,156		6,973,709
Stockholders' equity:
Preferred stock	—		—		—		—		—
Common stock	3		3		2		2		2
Additional paid-in capital	543,339		542,582		462,680		462,507		461,856

Retained earnings	494,378		469,818		457,522		433,508		408,276
Accumulated other comprehensive loss, net	(41,121)		(47,741)		(43,007)		(52,298)		(46,499)
Total stockholders' equity	996,599		964,662		877,197		843,719		823,635
Total liabilities and stockholders' equity	$	7,999,295	$	7,781,601	$	7,879,724	$	7,756,875	$	7,797,344

Consolidated Capital Ratios as of:



	June 30, 2024		March 31, 2024		December 31, 2023		September 30, 2023		June 30, 2023
Stockholders' equity to total assets	12.46	%	12.40	%	11.13	%	10.88	%	10.56	%
Tangible stockholders' equity to tangible assets (1)	11.32	%	11.21	%	9.94	%	9.65	%	9.33	%
Tangible stockholders' equity to tangible assets reflecting net unrealized losses on HTM securities, net of tax (1) (2)	11.27	%	11.17	%	9.90	%	9.59	%	9.28	%
Tier 1 leverage ratio	11.83	%	11.73	%	10.52	%	10.37	%	10.00	%
Common equity tier 1 risk-based capital ratio	12.80	%	12.54	%	11.10	%	10.79	%	10.40	%
Tier 1 risk-based capital ratio	12.80	%	12.54	%	11.10	%	10.79	%	10.40	%
Total risk-based capital ratio	14.95	%	14.73	%	13.25	%	12.93	%	12.52	%
(1) Represents a non-GAAP financial measure. See the tables beginning on page 15 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 quarter ended						For the six months ended
	June 30, 2024		June 30, 2023				June 30, 2024			June 30, 2023
(In thousands)	Average Balance		Average Yield/Rate		Average Balance			Average Yield/Rate		Average Balance		Average Yield/Rate		Average Balance		Average Yield/Rate
Interest Earning Assets

Loans (1)	6,384,709		6.59	%	6,220,833			6.13	%	6,349,282		6.53	%	6,125,441		6.01	%
Investment securities	523,545		3.65	%	563,902			3.00	%	535,252		3.46	%	567,273		2.96	%
Interest-bearing cash and other assets	348,509		5.25	%	176,672			5.63	%	294,009		5.35	%	166,523		5.55	%
Total earning assets	7,256,763		6.31	%	6,961,407			5.86	%	7,178,543		6.26	%	6,859,237		5.74	%
Other assets	548,465				556,105					548,553				555,040
Total assets	$	7,805,228			$	7,517,512				$	7,727,096			$	7,414,277

Interest-bearing liabilities
Demand and NOW deposits	$	621,343	3.80	%	$	332,695		2.55	%	$	585,417	3.67	%	$	280,224	2.40	%
Savings deposits	413,699		0.69	%	448,059			0.44	%	417,791		0.69	%	458,969		0.41	%
Money market deposits	2,092,449		2.01	%	2,107,379			1.11	%	2,077,885		1.97	%	2,201,401		0.99	%
Certificates of deposits	1,823,522		4.69	%	1,392,847			3.52	%	1,819,075		4.64	%	1,233,810		3.19	%
Total deposits	4,951,013		3.11	%	4,280,980			1.94	%	4,900,168		3.06	%	4,174,404		1.67	%
Repurchase agreements	16,553		1.15	%	33,673			0.80	%	18,904		1.10	%	31,683		0.62	%
Total deposits and repurchase agreements	4,967,566		3.10	%	4,314,653			1.93	%	4,919,072		3.05	%	4,206,087		1.66	%
FHLB borrowings	130,871		5.67	%	472,105			5.19	%	120,824		5.62	%	463,142		4.94	%
Other long-term borrowings	75,522		6.59	%	80,440			6.36	%	75,456		6.60	%	80,370		6.32	%
Total interest-bearing liabilities	5,173,959		3.22	%	4,867,198			2.32	%	5,115,352		3.16	%	4,749,599		2.06	%
Noninterest-bearing deposits	1,517,560				1,694,961					1,510,134				1,731,468
Other liabilities	133,845				128,118					134,106				126,343
Stockholders' equity	979,864				827,235					967,504				806,867
Total liabilities and stockholders' equity	$	7,805,228			$	7,517,512				$	7,727,096			$	7,414,277


Net interest spread			3.09	%				3.54	%			3.10	%			3.68	%
Net interest margin			4.02	%				4.24	%			4.00	%			4.31	%
Net interest margin (on FTE basis) (2)			4.08	%				4.32	%			4.07	%			4.39	%
(1) Includes loans held-for-investment, including nonaccrual loans, and loans held-for-sale.
(2) Represents a non-GAAP financial measure. See the tables beginning on page 15 for a reconciliation of each non-GAAP measure to the most comparable GAAP equivalent.


	For the quarter ended
	June 30, 2024		March 31, 2024				December 31, 2023			September 30, 2023		June 30, 2023
(In thousands)	Average Balance		Average Yield/Rate		Average Balance			Average Yield/Rate		Average Balance		Average Yield/Rate		Average Balance		Average Yield/Rate		Average Balance		Average Yield/Rate
Interest Earning Assets

Loans (1)	6,384,709		6.59	%	6,313,855			6.48	%	6,280,362		6.51	%	6,180,684		6.44	%	6,220,833		6.13	%
Investment securities	523,545		3.65	%	546,960			3.28	%	538,348		3.28	%	545,257		3.10	%	563,902		3.00	%
Interest-bearing cash and other assets	348,509		5.25	%	239,508			5.49	%	247,978		5.50	%	221,559		5.39	%	176,672		5.63	%
Total earning assets	7,256,763		6.31	%	7,100,323			6.20	%	7,066,688		6.22	%	6,947,500		6.15	%	6,961,407		5.86	%
Other assets	548,465				548,642					563,368				557,988				556,105
Total assets	$	7,805,228			$	7,648,965				$	7,630,056			$	7,505,488			$	7,517,512

Interest-bearing liabilities
Demand and NOW deposits	$	621,343	3.80	%	$	549,491		3.54	%	$	510,982	3.45	%	$	466,837	3.27	%	$	332,695	2.55	%
Savings deposits	413,699		0.69	%	421,882			0.69	%	457,679		0.93	%	439,172		0.62	%	448,059		0.44	%
Money market deposits	2,092,449		2.01	%	2,063,321			1.93	%	2,063,383		1.82	%	2,026,028		1.58	%	2,107,379		1.11	%
Certificates of deposits	1,823,522		4.69	%	1,814,629			4.60	%	1,825,325		4.54	%	1,748,515		4.21	%	1,392,847		3.52	%
Total deposits	4,951,013		3.11	%	4,849,323			3.00	%	4,857,369		2.93	%	4,680,552		2.64	%	4,280,980		1.94	%
Repurchase agreements	16,553		1.15	%	21,254			1.06	%	23,457		1.06	%	26,549		0.98	%	33,673		0.80	%
Total deposits and repurchase agreements	4,967,566		3.10	%	4,870,577			2.99	%	4,880,826		2.92	%	4,707,101		2.63	%	4,314,653		1.93	%
FHLB borrowings	130,871		5.67	%	110,777			5.56	%	74,146		5.64	%	84,332		5.40	%	472,105		5.19	%
Other long-term borrowings	75,522		6.59	%	75,389			6.62	%	75,249		6.62	%	78,680		6.44	%	80,440		6.36	%
Total interest-bearing liabilities	5,173,959		3.22	%	5,056,743			3.10	%	5,030,221		3.01	%	4,870,113		2.74	%	4,867,198		2.32	%
Noninterest-bearing deposits	1,517,560				1,502,707					1,597,672				1,654,090				1,694,961
Other liabilities	133,845				134,370					143,416				142,027				128,118
Stockholders' equity	979,864				955,145					858,747				839,258				827,235
Total liabilities and stockholders' equity	$	7,805,228			$	7,648,965				$	7,630,056			$	7,505,488			$	7,517,512


Net interest spread			3.09	%				3.10	%			3.21	%			3.41	%			3.54	%
Net interest margin			4.02	%				3.99	%			4.08	%			4.23	%			4.24	%
Net interest margin (on FTE basis) (2)			4.08	%				4.06	%			4.15	%			4.30	%			4.32	%
(1) Includes loans held-for-investment, including nonaccrual loans, and loans held-for-sale.
(2) Represents a non-GAAP financial measure. See the tables beginning on page 15 for a reconciliation of each non-GAAP measure to the most comparable GAAP equivalent.

Deposits as of:



($ in thousands)	June 30, 2024		March 31, 2024		December 31, 2023		September 30, 2023		June 30, 2023
Consumer
Noninterest bearing deposit accounts	$	414,795	$	356,732	$	360,168	$	366,366	$	375,583
Interest-bearing deposit accounts:
Demand and NOW deposits	42,903		38,625		36,162		33,340		34,731
Savings deposits	334,741		340,086		343,291		356,890		378,193
Money market deposits	1,243,355		1,229,239		1,196,645		1,149,365		1,174,883
Certificates of deposits	1,438,792		1,437,590		1,437,537		1,366,255		1,095,754
Total interest-bearing deposit accounts	3,059,791		3,045,540		3,013,635		2,905,850		2,683,561
Total consumer deposits	$	3,474,586	$	3,402,272	$	3,373,803	$	3,272,216	$	3,059,144
Business
Noninterest bearing deposit accounts	$	1,147,513	$	1,160,583	$	1,170,338	$	1,244,284	$	1,291,664
Interest-bearing deposit accounts:
Demand and NOW deposits	538,016		502,726		555,197		443,191		393,318
Savings deposits	77,931		80,226		80,802		85,234		30,904
Money market deposits	849,412		823,704		825,811		859,516		832,279
Certificates of deposits	90,189		97,854		87,407		77,228		77,604
Total interest-bearing deposit accounts	1,555,548		1,504,510		1,549,217		1,465,169		1,334,105
Total business deposits	$	2,703,061	$	2,665,093	$	2,719,555	$	2,709,453	$	2,625,769
Wholesale deposits (1)	$	441,878	$	378,023	$	280,745	$	358,178	$	465,505
Total deposits	$	6,619,525	$	6,445,388	$	6,374,103	$	6,339,847	$	6,150,418
(1) Wholesale deposits primarily consist of brokered deposits included in our condensed consolidated balance sheets within certificates of deposits.

Balance Sheet Ratios as of:



	June 30, 2024		March 31, 2024		December 31, 2023		September 30, 2023		June 30, 2023
Cash to total assets (1)	6.60	%	4.80	%	6.00	%	5.60	%	6.20	%
Loan to deposit ratio	95.7	%	97.5	%	98.3	%	97.5	%	100.1	%
Uninsured deposits to total deposits (2)	32.1	%	32.0	%	31.2	%	32.0	%	32.5	%
Uninsured and uncollateralized deposits to total deposits (2)	25.5	%	25.2	%	25.1	%	25.4	%	24.1	%

Wholesale deposits and borrowings to total liabilities (3)	8.4	%	7.7	%	9.6	%	10.0	%	14.9	%


(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:



($ in thousands)	June 30, 2024		March 31, 2024		December 31, 2023		September 30, 2023		June 30, 2023
Commercial and industrial	$	2,431,110	$	2,480,078	$	2,467,688	$	2,459,358	$	2,474,531
Commercial real estate:
Non-owner occupied	866,999		836,515		812,235		767,135		723,365
Owner occupied	660,511		642,930		635,365		631,352		643,191
Construction and land	350,878		326,447		345,430		329,433		316,399
Multifamily	94,220		94,898		103,066		114,535		100,464
Total commercial real estate	1,972,608		1,900,790		1,896,096		1,842,455		1,783,419
Residential real estate	1,146,989		1,109,676		1,110,610		1,059,074		1,082,991
Public Finance	537,872		579,991		602,913		602,844		611,748
Consumer	42,129		40,317		36,371		37,681		39,909
Other	206,454		174,016		153,418		178,110		162,492
Total loans, net of deferred costs, fees, premiums, and discounts	$	6,337,162	$	6,284,868	$	6,267,096	$	6,179,522	$	6,155,090

Asset Quality:


	As of and for the quarter ended
($ in thousands)	June 30, 2024			March 31, 2024			December 31, 2023			September 30, 2023			June 30, 2023
Net charge-offs	$	2,009		$	17,429		$	4,743		$	2,296		$	717
Allowance for credit losses	$	78,960		$	79,829		$	80,398		$	78,666		$	77,362
Nonperforming loans, including nonaccrual loans, and accrual loans greater than 90 days past due	$	62,558		$	57,599		$	63,143		$	40,743		$	67,840
Nonperforming assets	$	67,055		$	62,013		$	67,243		$	49,138		$	77,979
Ratio of net charge-offs to average loans outstanding	0.13		%	1.11		%	0.30		%	0.15		%	0.05		%
Allowance for credit losses to total loans outstanding	1.25		%	1.27		%	1.28		%	1.27		%	1.26		%

Allowance for credit losses to total nonperforming loans	126.22		%	138.59		%	127.33		%	193.08		%	114.04		%
Nonperforming loans to total loans	0.99		%	0.92		%	1.01		%	0.66		%	1.10		%
Nonperforming assets to total assets	0.84		%	0.80		%	0.85		%	0.63		%	1.00		%

Non-GAAP Financial Measures and Reconciliations:


	As of and for the quarter ended															As of and for the six months ended
($ in thousands, except share and per share amounts)	June 30, 2024			March 31, 2024			December 31, 2023			September 30, 2023			June 30, 2023			June 30, 2024			June 30, 2023
Tangible stockholders’ equity:
Total stockholders' equity (GAAP)	$	996,599		$	964,662		$	877,197		$	843,719		$	823,635		$	996,599		$	823,635
Less: Goodwill and other intangible assets:
Goodwill	(93,483)			(93,483)			(93,483)			(93,483)			(93,483)			(93,483)			(93,483)
Other intangible assets	(9,517)			(10,168)			(10,984)			(11,813)			(12,712)			(9,517)			(12,712)
Tangible stockholders' equity (non-GAAP)	$	893,599		$	861,011		$	772,730		$	738,423		$	717,440		$	893,599		$	717,440
Tangible assets:
Total assets (GAAP)	$	7,999,295		$	7,781,601		$	7,879,724		$	7,756,875		$	7,797,344		$	7,999,295		$	7,797,344
Less: Goodwill and other intangible assets:
Goodwill	(93,483)			(93,483)			(93,483)			(93,483)			(93,483)			(93,483)			(93,483)
Other intangible assets	(9,517)			(10,168)			(10,984)			(11,813)			(12,712)			(9,517)			(12,712)
Tangible assets (non-GAAP)	$	7,896,295		$	7,677,950		$	7,775,257		$	7,651,579		$	7,691,149		$	7,896,295		$	7,691,149
Tangible stockholders’ equity to tangible assets:
Total stockholders' equity to total assets (GAAP)	12.46		%	12.40		%	11.13		%	10.88		%	10.56		%	12.46		%	10.56		%
Less: Impact of goodwill and other intangible assets	(1.14)		%	(1.19)		%	(1.19)		%	(1.23)		%	(1.23)		%	(1.14)		%	(1.23)		%
Tangible stockholders' equity to tangible assets (non-GAAP)	11.32		%	11.21		%	9.94		%	9.65		%	9.33		%	11.32		%	9.33		%
Tangible stockholders’ equity to tangible assets, reflecting net unrealized losses on HTM securities, net of tax:
Tangible stockholders' equity (non-GAAP)	$	893,599		$	861,011		$	772,730		$	738,423		$	717,440		$	893,599		$	717,440
Less: Net unrealized losses on HTM securities, net of tax	(3,949)			(4,236)			(3,629)			(5,001)			(3,821)			(3,949)			(3,821)
Tangible stockholders’ equity less net unrealized losses on HTM securities, net of tax (non-GAAP)	$	889,650		$	856,775		$	769,101		$	733,422		$	713,619		$	889,650		$	713,619
Tangible assets (non-GAAP)	$	7,896,295		$	7,677,950		$	7,775,257		$	7,651,579		$	7,691,149		$	7,896,295		$	7,691,149
Less: Net unrealized losses on HTM securities, net of tax	(3,949)			(4,236)			(3,629)			(5,001)			(3,821)			(3,949)			(3,821)
Tangible assets less net unrealized losses on HTM securities, net of tax (non-GAAP)	$	7,892,346		$	7,673,714		$	7,771,628		$	7,646,578		$	7,687,328		$	7,892,346		$	7,687,328


	As of and for the quarter ended															As of and for the six months ended
($ in thousands, except share and per share amounts)	June 30, 2024			March 31, 2024			December 31, 2023			September 30, 2023			June 30, 2023			June 30, 2024			June 30, 2023
Tangible stockholders’ equity to tangible assets (non-GAAP)	11.32		%	11.21		%	9.94		%	9.65		%	9.33		%	11.32		%	9.33		%
Less: Net unrealized losses on HTM securities, net of tax	(0.05)		%	(0.04)		%	(0.04)		%	(0.06)		%	(0.05)		%	(0.05)		%	(0.05)		%
Tangible stockholders’ equity to tangible assets reflecting net unrealized losses on HTM securities, net of tax (non-GAAP)	11.27		%	11.17		%	9.90		%	9.59		%	9.28		%	11.27		%	9.28		%
Tangible book value per share:
Total stockholders' equity (GAAP)	$	996,599		$	964,662		$	877,197		$	843,719		$	823,635		$	996,599		$	823,635
Tangible stockholders' equity (non-GAAP)	$	893,599		$	861,011		$	772,730		$	738,423		$	717,440		$	893,599		$	717,440
Total shares outstanding	27,443,246			27,442,943			24,960,639			24,942,645			24,941,468			27,443,246			24,941,468
Book value per share (GAAP)	$	36.31		$	35.15		$	35.14		$	33.83		$	33.02		$	36.31		$	33.02
Tangible book value per share (non-GAAP)	$	32.56		$	31.37		$	30.96		$	29.60		$	28.76		$	32.56		$	28.76
Net income excluding merger costs:
Net income (GAAP)	$	24,560		$	12,296		$	24,014		$	25,232		$	28,006		$	36,856		$	54,287
Add: Merger costs
Merger related expenses	1,046			2,489			—			—			—			3,535			—
Income tax effect on merger related expenses	(425)			(193)			—			—			—			(618)			—


Total merger costs, net of tax	621			2,296			—			—			—			2,917			—
Net income excluding merger costs (non-GAAP)	$	25,181		$	14,592		$	24,014		$	25,232		$	28,006		$	39,773		$	54,287

Return on average total assets excluding merger costs:
Return on average total assets (ROAA) (GAAP)	1.26		%	0.64		%	1.26		%	1.34		%	1.49		%	0.95		%	1.46		%
Add: Impact of merger costs, net of tax	0.03		%	0.12		%	—		%	—		%	—		%	0.08		%	—		%
ROAA excluding merger costs (non-GAAP)	1.29		%	0.76		%	1.26		%	1.34		%	1.49		%	1.03		%	1.46		%
Return on average stockholders’ equity excluding merger costs:
Return on average stockholders' equity (ROAE) (GAAP)	10.03		%	5.15		%	11.19		%	12.03		%	13.54		%	7.62		%	13.46		%
Add: Impact of merger costs, net of tax	0.25		%	0.96		%	—		%	—		%	—		%	0.60		%	—		%
ROAE excluding merger costs (non-GAAP)	10.28		%	6.11		%	11.19		%	12.03		%	13.54		%	8.22		%	13.46		%

Efficiency ratio excluding merger related expenses:
Efficiency ratio (GAAP)	66.42		%	66.05		%	58.58		%	61.02		%	59.15		%	66.23		%	59.79		%
Less: Impact of merger related expenses	(1.09)		%	(2.66)		%	—		%	—		%	—		%	(1.86)		%	—		%
Efficiency ratio excluding merger related expenses (non-GAAP)	65.33		%	63.39		%	58.58		%	61.02		%	59.15		%	64.37		%	59.79		%


	As of and for the quarter ended															As of and for the six months ended
($ in thousands, except share and per share amounts)	June 30, 2024			March 31, 2024			December 31, 2023			September 30, 2023			June 30, 2023			June 30, 2024			June 30, 2023
Diluted earnings per share excluding merger costs:
Diluted earnings per share (GAAP)	$	0.88		$	0.45		$	0.94		$	1.00		$	1.11		$	1.32		$	2.14
Add: Impact of merger costs, net of tax	0.02			0.08			—			—			—			0.11			—
Diluted earnings per share excluding merger costs (non-GAAP)	$	0.90		$	0.53		$	0.94		$	1.00		$	1.11		$	1.43		$	2.14








Fully tax equivalent (“FTE”) net interest income and net interest margin on FTE basis:
Net interest income (GAAP)	$	72,899		$	70,806		$	72,069		$	73,410		$	73,835		$	143,705		$	147,952
Gross income effect of tax exempt income	1,156			1,318			1,270			1,286			1,288			2,475			2,530
FTE net interest income (non-GAAP)	$	74,055		$	72,124		$	73,339		$	74,696		$	75,123		$	146,180		$	150,482
Average earning assets	$	7,256,763		$	7,100,323		$	7,066,688		$	6,947,500		$	6,961,407		$	7,178,543		$	6,859,237
Net interest margin	4.02		%	3.99		%	4.08		%	4.23		%	4.24		%	4.00		%	4.31		%
Net interest margin on FTE basis (non-GAAP)	4.08		%	4.06		%	4.15		%	4.30		%	4.32		%	4.07		%	4.39		%

FirstSun Capital Bancorp (FSUN) 8-KFirstSun Capital Bancorp Reports Second Quarter 2024 Results