Form 8-K - Current report

0001709442FALSE00017094422023-07-272023-07-27

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of Report (date of earliest event reported): July 27, 2023

FIRSTSUN CAPITAL BANCORP

(Exact name of registrant as specified in its charter)

Delaware			333-258176			81-4552413
(State or other jurisdiction of incorporation or organization)			(Commission File Number)			(I.R.S. Employer Identification Number)

1400 16th Street, Suite 250

Denver, Colorado 80202

(Address of principal executive offices and zip code)

[phone]

(Registrant's telephone number, including area code)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

☐			Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐			Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐			Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐			Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act: none

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (17CFR § 230.405) or 12b-2 of the Exchange Act of 1934 (17 CFR § 240.12b-2).

Emerging growth company ☒    

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

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Item 2.02 Results of Operations and Financial Condition.

On July 27, 2023, FirstSun Capital Bancorp issued an earnings press release announcing financial results for the second quarter ended June 30, 2023. The earnings press release is furnished as Exhibit 99.1 to this Current Report on Form 8-K.

The information in this Item 2.02, including Exhibit 99.1, shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, or otherwise subject to the liability of that section, and shall not be deemed to be incorporated by reference into any filing under the Securities Act of 1933 or the Securities Exchange Act of 1934.

Item 9.01 Financial Statements and Exhibits

(d) The following exhibit index lists the exhibits that are either filed or furnished with this Current Report on Form 8-K:

EXHIBIT INDEX

Exhibit Number						Description
99.1						Earnings Press Release dated July 27, 2023.
104						Cover Page Interactive Data File (embedded within the Inline XBRL document).

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SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

			FIRSTSUN CAPITAL BANCORP
Date: July 27, 2023			By:			/s/ Robert A. Cafera, Jr.
			Name:			Robert A. Cafera, Jr.
			Title:			Executive Vice President and Chief Financial Officer
						(Principal Financial Officer)

FirstSun Capital Bancorp Reports Second Quarter 2023 Results

Second Quarter 2023 Highlights:

•Net income of $28.0 million, $1.11 per diluted share

•Net interest margin of 4.24%

•Return on average total assets of 1.49%

•Return on average stockholders’ equity of 13.54%

•Average deposit growth of 9.7% annualized

•Loan growth of 6.2% annualized

•24.8% noninterest income to total revenue

Denver, Colorado – July 27, 2023 – FirstSun Capital Bancorp (“FirstSun”) (OTCQX: FSUN) reported net income of $28.0 million for the second quarter of 2023 compared to net income of $0.4 million for the second quarter of 2022. Earnings per diluted share were $1.11 for the second quarter of 2023 compared to $0.02 for the second quarter of 2022. Earnings for the second quarter of 2022 were impacted by $16.8 million of merger costs, net of tax, or $0.66 per diluted share.

Neal Arnold, FirstSun’s President and Chief Executive Officer, commented, “We are very pleased with our record earnings this quarter and our continued strong results driven by our well diversified business mix. Highlights this quarter include a net interest margin of 4.24%, along with growth in both loans and deposits. We believe our growth amidst the difficult banking environment, including declining deposit trends and rising funding costs, will position us uniquely among our peers. Additionally, with growing concern about economic uncertainty and rising commercial real estate pressures, we are heartened by the vitality of the southwest region that we operate in and our lower exposure to commercial real estate relative to our peers. Further, we believe our strong capital base, our granular deposit base, our securities portfolio positioning, our loan portfolio credit quality and our overall asset sensitive profile provides us with the flexibility to continue to deliver responsible growth in this slowing economic environment.”

Second Quarter 2023 Results

Net income totaled $28.0 million, or $1.11 per diluted share, during the second quarter of 2023, compared to $26.3 million, or $1.03 per diluted share, during the prior quarter. The return on average total assets was 1.49% in the second quarter of 2023, compared to 1.44% in the prior quarter, and the return on average stockholders’ equity was 13.54% in the second quarter of 2023, compared to 13.37% in the prior quarter.

Net Interest Income and Net Interest Margin

Net interest income totaled $73.8 million during the second quarter of 2023, a decrease of $0.3 million compared to the prior quarter. Our net interest margin decreased 15 basis points to 4.24% compared to the prior quarter. Results in the second quarter of 2023, compared to the prior quarter, were driven by an increase of 52 basis points in the cost of interest-bearing liabilities, partially offset by an increase of 24 basis points in yield on earning assets.

Average loans increased by $0.2 billion in the second quarter of 2023, compared to the prior quarter. Loan yield increased by 25 basis points to 6.13% in the second quarter of 2023, compared to the prior quarter, primarily due to the rising interest rate environment and its impact on variable rate loans in the loan portfolio and higher yields on new originations. Average interest-bearing deposits increased $0.2 billion in the second quarter of 2023, compared to the prior quarter. Total cost of deposits increased by 55 basis points to 1.94% in the second quarter of 2023, compared to the prior quarter, primarily due to an increase in deposit pricing as a result of the elevated interest rate environment and higher mix of certificates of deposits. Average FHLB borrowings increased $18.0 million in the second quarter of 2023, compared to the prior quarter. The cost of FHLB borrowings increased by 51 basis points to 5.19% in the second quarter of 2023, compared to the prior quarter, primarily due to the rising interest rate environment.

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Asset Quality and Provision for Credit Losses

The provision for credit losses totaled $4.4 million during the second quarter of 2023, an increase of $1.1 million from $3.4 million in the prior quarter, primarily due to loan growth and deterioration on a specific customer relationship in our loan portfolio.

Net charge-offs during the second quarter of 2023 were $0.7 million, resulting in an annualized ratio of net charge-offs to average loans of 0.05%, compared to net charge-offs of $0.1 million, resulting in an annualized ratio of net-charge offs to average loans of 0.00% in the prior quarter. The allowance for credit losses as a percentage of total loans was 1.26% at June 30, 2023, an increase of three basis points from the prior quarter.

The ratio of nonperforming assets to total assets was 1.00% at June 30, 2023, compared to 0.51% at March 31, 2023.

Noninterest Income

Noninterest income totaled $24.3 million during the second quarter of 2023, an increase of $5.4 million from the prior quarter. Mortgage banking income increased $4.2 million during the second quarter of 2023, primarily due to an increase in fair value of our mortgage servicing rights portfolio. Total originations of mortgage loans held-for-sale were $236.2 million in the second quarter of 2023, or an increase of $38.4 million from the prior quarter. Other noninterest income increased $0.7 million during the second quarter of 2023, primarily due to an increase in loan syndication fees and customer accommodation swap fees. Noninterest income as a percentage of total revenue was 24.8%, an increase of 4.4% from the prior quarter.

Noninterest Expense

Noninterest expense totaled $58.0 million during the second quarter of 2023, an increase of $1.8 million from the prior quarter. Amortization of intangible assets increased $1.0 million from the prior quarter. Data processing and insurance expenses increased by $0.9 million and $0.7 million, respectively. These increases were partially offset by a $1.0 million decrease in salaries and employee benefits from the prior quarter primarily due to higher benefit costs generally incurred in the first quarter of each year.

The efficiency ratio for the second quarter of 2023 was 59.15% compared to 60.47% in the prior quarter.

Tax Rate

The effective tax rate was 21.5% in the second quarter of 2023, compared to 21.4% in the prior quarter.

Loans

Total loans were $6.2 billion at June 30, 2023, compared to $6.1 billion at March 31, 2023, an increase of $94.1 million in the second quarter of 2023, or 6.2% on an annualized basis, resulting primarily from growth in commercial and industrial and residential real estate balances.

Deposits

Average deposits were $6.0 billion for the second quarter of 2023, compared to $5.8 billion for the prior quarter, an increase of $140.9 million in the second quarter of 2023, or 9.7% on an annualized basis. Noninterest-bearing deposit accounts represented 27.1% of total deposits at June 30, 2023 and the loan-to-deposit ratio was 100.1% at June 30, 2023.

The ratio of total uninsured deposits to total deposits was estimated to be 32.5% at June 30, 2023, compared to 35.8% at March 31, 2023. The ratio of total uninsured and uncollateralized deposits to total deposits was estimated to be 24.1% at June 30, 2023, compared to 26.4% at March 31, 2023.1

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

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Capital

Capital ratios remain strong and above “well-capitalized” thresholds. As of June 30, 2023, our common equity tier 1 risk-based capital ratio was 10.40%, total risk-based capital ratio was 12.52% and tier 1 leverage ratio was 10.00%. Book value per common share was $33.02 at June 30, 2023, an increase of $0.96 from March 31, 2023. Tangible book value per common share, a non-GAAP financial measure, was $28.76 at June 30, 2023, an increase of $1.04 from March 31, 2023.

Non-GAAP Financial Measures

This press release (including the tables beginning on page 12) 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 common stockholders’ equity;

•Tangible assets;

•Tangible common stockholders’ equity to tangible assets;

•Tangible common stockholders’ equity to tangible assets, reflecting net unrealized losses on HTM securities, net of tax;

•Tangible book value per common 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 12 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 $7.8 billion as of June 30, 2023.

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.

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Summary Data:

			As of and for the quarter ended																		As of and for the six months ended
($ in thousands, except per share amounts)			June 30, 2023						March 31, 2023						June 30, 2022						June 30, 2023						June 30, 2022
Net interest income			$	73,835					$	74,117					$	58,585					$	147,952					$	99,870
Provision for credit losses			4,422						3,360						5,000						7,782						8,700
Noninterest income			24,290						18,931						22,302						43,221						45,995
Noninterest expense			58,043						56,266						75,668						114,309						128,135
Income before income taxes			35,660						33,422						219						69,082						9,030
Provision for income taxes			7,654						7,141						(211)						14,795						931
Net income			28,006						26,281						430						54,287						8,099
Net income, excluding merger costs (1)			28,006						26,281						17,208						54,287						25,130
Diluted earnings per share			$	1.11					$	1.03					$	0.02					$	2.14					$	0.36
Diluted earnings per share, excluding merger costs (1)			$	1.11					$	1.03					$	0.68					$	2.14					$	1.13
Return on average total assets			1.49		%				1.44		%				0.02		%				1.46		%				0.25		%
Return on average total assets, excluding merger costs (1)			1.49		%				1.44		%				0.96		%				1.46		%				0.78		%
Return on average stockholders' equity			13.54		%				13.37		%				0.23		%				13.46		%				2.54		%
Return on average stockholders’ equity, excluding merger costs (1)			13.54		%				13.37		%				9.19		%				13.46		%				7.89		%
Net interest margin			4.24		%				4.39		%				3.56		%				4.31		%				3.34		%
Net interest margin (FTE basis) (1)			4.32		%				4.46		%				3.64		%				4.39		%				3.43		%
Efficiency ratio			59.15		%				60.47		%				93.55		%				59.79		%				87.84		%
Efficiency ratio, excluding merger related expenses (1)			59.15		%				60.47		%				70.74		%				59.79		%				74.99		%
Noninterest income to total revenue			24.8		%				20.3		%				27.6		%				22.6		%				31.5		%
Total assets			$	7,797,344					$	7,610,456					$	7,060,692					$	7,797,344					$	7,060,692
Total loans held-for-sale			56,350						66,255						61,253						56,350						61,253
Total loans held-for-investment			6,155,090						6,060,975						5,387,928						6,155,090						5,387,928
Total deposits			6,150,418						5,994,266						5,933,022						6,150,418						5,933,022
Total stockholders' equity			823,635						799,050						727,542						823,635						727,542
Period end loan-to-deposit ratio			100.1		%				101.1		%				90.8		%				100.1		%				90.8		%
Book value per common share			$	33.02					$	32.06					$	29.28					$	33.02					$	29.28
Tangible book value per common share (1)			$	28.76					$	27.72					$	24.76					$	28.76					$	24.76
(1) Represents a non-GAAP financial measure. See the tables beginning on page 12 for a reconciliation of each non-GAAP measure to the most comparable GAAP equivalent.

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Condensed Consolidated Statements of Income (Unaudited):

			As of and for the quarter ended																		As of and for the six months ended
($ in thousands, except per share amounts)			June 30, 2023						March 31, 2023						June 30, 2022						June 30, 2023						June 30, 2022
Total interest income			$	102,032					$	94,903					$	63,228					$	196,935					$	107,889
Total interest expense			28,197						20,786						4,643						48,983						8,019
Net interest income			73,835						74,117						58,585						147,952						99,870
Provision for credit losses			4,422						3,360						5,000						7,782						8,700
Net interest income after provision for credit losses			69,413						70,757						53,585						140,170						91,170
Noninterest income:
Service charges on deposits			5,358						5,015						4,379						10,373						8,304
Credit and debit card fees			3,057						2,981						2,990						6,038						5,405
Trust and investment advisory fees			1,478						1,461						1,909						2,939						3,856
Mortgage banking income, net			11,659						7,429						11,671						19,088						26,232
Other noninterest income			2,738						2,045						1,353						4,783						2,198
Total noninterest income			24,290						18,931						22,302						43,221						45,995
Noninterest expense:
Salaries and benefits			34,056						35,049						35,248						69,105						69,473
Occupancy and equipment			7,948						8,174						7,753						16,122						14,586
Amortization of intangible assets			2,050						1,044						935						3,094						1,262
Merger related expenses			—						—						18,448						—						18,751
Other noninterest expenses			13,989						11,999						13,284						25,988						24,063
Total noninterest expense			58,043						56,266						75,668						114,309						128,135
Income before income taxes			35,660						33,422						219						69,082						9,030
Provision (benefit) for income taxes			7,654						7,141						(211)						14,795						931
Net income			$	28,006					$	26,281					$	430					$	54,287					$	8,099
Earnings per share - basic			$	1.12					$	1.05					$	0.02					$	2.18					$	0.38
Earnings per share - diluted			$	1.11					$	1.03					$	0.02					$	2.14					$	0.36

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Condensed Consolidated Balance Sheets as of (Unaudited):

($ in thousands)			June 30, 2023						March 31, 2023						June 30, 2022
Assets
Cash and cash equivalents			$	492,735					$	388,349					$	510,701
Securities available-for-sale, at fair value			515,956						532,650						578,751
Securities held-to-maturity			37,883						38,470						39,803
Loans held-for-sale, at fair value			56,350						66,255						61,253
Loans			6,155,090						6,060,975						5,387,928
Allowance for credit losses			(77,362)						(74,459)						(56,077)
Loans, net			6,077,728						5,986,516						5,331,851
Mortgage servicing rights, at fair value			78,390						73,424						66,047
Premises and equipment, net			84,483						86,430						89,674
Other real estate owned and foreclosed assets, net			10,139						6,358						5,391
Goodwill			93,483						93,483						93,483
Intangible assets, net			12,712						14,762						18,760
All other assets			337,485						323,759						264,978
Total assets			$	7,797,344					$	7,610,456					$	7,060,692
Liabilities and Stockholders' Equity
Liabilities:
Deposits:
Noninterest-bearing demand deposit accounts			$	1,667,247					$	1,764,440					$	1,942,078
Interest-bearing deposit accounts:
Interest-bearing demand accounts			379,779						238,658						165,287
Savings accounts and money market accounts			2,441,349						2,705,315						3,204,704
NOW accounts			48,270						45,192						50,126
Certificate of deposit accounts			1,613,773						1,240,661						570,827
Total deposits			6,150,418						5,994,266						5,933,022
Securities sold under agreements to repurchase			32,861						31,645						70,838
Federal Home Loan Bank advances			570,585						577,285						159,968
Other borrowings			80,511						80,373						79,959
Other liabilities			139,334						127,837						89,363
Total liabilities			6,973,709						6,811,406						6,333,150
Stockholders' equity:
Preferred stock			—						—						—
Common stock			2						2						2
Additional paid-in capital			461,856						461,174						460,263
Retained earnings			408,276						380,270						306,714
Accumulated other comprehensive loss, net			(46,499)						(42,396)						(39,437)
Total stockholders' equity			823,635						799,050						727,542
Total liabilities and stockholders' equity			$	7,797,344					$	7,610,456					$	7,060,692

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Share Data as of and for the periods ended:

			As of and for the quarter ended																		As of and for the six months ended
			June 30, 2023						March 31, 2023						June 30, 2022						June 30, 2023						June 30, 2022
Weighted average common shares outstanding, basic			24,933,664						24,923,259						24,760,282						24,928,485						21,570,924
Weighted average common shares outstanding, diluted			25,206,359						25,487,582						25,458,311						25,368,702						22,195,814
Period end common shares outstanding			24,941,468						24,920,984						24,850,954						24,941,468						24,850,954
Book value per common share			$	33.02					$	32.06					$	29.28					$	33.02					$	29.28
Tangible book value per common share (1)			$	28.76					$	27.72					$	24.76					$	28.76					$	24.76

Consolidated Capital Ratios as of:

			June 30, 2023						March 31, 2023						June 30, 2022
Stockholders' equity to total assets			10.56		%				10.50		%				10.30		%
Tangible common stockholders' equity to tangible assets (1)			9.33		%				9.21		%				8.86		%
Tangible common stockholders' equity to tangible assets reflecting net unrealized losses on HTM securities, net of tax (1) (2)			9.28		%				9.16		%				8.82		%
Tier 1 leverage ratio			10.00		%				9.86		%				8.89		%
Common equity tier 1 risk-based capital ratio			10.40		%				10.11		%				9.59		%
Tier 1 risk-based capital ratio			10.40		%				10.11		%				9.59		%
Total risk-based capital ratio			12.52		%				12.19		%				11.60		%
(1) Represents a non-GAAP financial measure. See the tables beginning on page 12 for a reconciliation of each non-GAAP measure to the most comparable GAAP equivalent. (2) Tangible common stockholders’ equity and tangible assets have been adjusted to reflect net unrealized losses on held-to-maturity securities, net of tax.

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Summary of Net Interest Margin:

						For the quarter ended June 30, 2023																		For the quarter ended March 31, 2023																		For the quarter ended  June 30, 2022
(In thousands)						Average Balance						Interest						Average Yield/Rate						Average Balance						Interest						Average Yield/Rate						Average Balance						Interest						Average Yield/Rate
Interest Earning Assets
Loans held-for-sale						$	63,988					$	969					6.06		%				$	50,129					$	654					5.22		%				$	70,430					$	1,269					7.21		%
Loans held-for-investment (1)						6,156,845						94,351						6.13		%				5,978,860						87,947						5.88		%				5,264,355						57,316						4.35		%
Investment securities						563,902						4,227						3.00		%				570,682						4,164						2.92		%				651,180						3,333						2.05		%
Interest-bearing cash and other assets						176,672						2,485						5.63		%				156,262						2,138						5.47		%				591,208						1,310						0.89		%
Total earning assets						6,961,407						102,032						5.86		%				6,755,933						94,903						5.62		%				6,577,173						63,228						3.85		%
Other assets						556,105																		553,961																		585,760
Total assets						$	7,517,512																	$	7,309,894																	$	7,162,933
Interest-bearing liabilities
Demand and NOW deposits						$	332,695					$	2,124					2.55		%				$	227,170					$	1,234					2.17		%				$	219,502					$	229					0.42		%
Savings deposits						448,059						491						0.44		%				470,000						445						0.38		%				516,045						133						0.10		%
Money market deposits						2,107,379						5,874						1.11		%				2,296,469						5,068						0.88		%				2,774,713						1,172						0.17		%
Certificates of deposits						1,392,847						12,240						3.52		%				1,073,006						7,432						2.77		%				581,803						638						0.44		%
Total deposits						4,280,980						20,729						1.94		%				4,066,645						14,179						1.39		%				4,092,063						2,172						0.21		%
Repurchase agreements						33,673						68						0.80		%				29,672						30						0.41		%				56,247						15						0.11		%
Total deposits and repurchase agreements						4,314,653						20,797						1.93		%				4,096,317						14,209						1.39		%				4,148,310						2,187						0.21		%
FHLB borrowings						472,105						6,121						5.19		%				454,081						5,317						4.68		%				184,100						771						1.67		%
Other long-term borrowings						80,440						1,279						6.36		%				80,300						1,260						6.28		%				82,154						1,685						8.21		%
Total interest-bearing liabilities						4,867,198						28,197						2.32		%				4,630,698						20,786						1.80		%				4,414,564						4,643						0.42		%
Noninterest-bearing deposits						1,694,961																		1,768,381																		1,923,870
Other liabilities						128,118																		124,543																		75,768
Stockholders' equity						827,235																		786,272																		748,731
Total liabilities and stockholders' equity						$	7,517,512																	$	7,309,894																	$	7,162,933
Net interest income												$	73,835																	$	74,117																	$	58,585
Net interest spread												3.54		%																3.82		%																3.43		%
Net interest margin												4.24		%																4.39		%																3.56		%
Net interest margin (on FTE basis) (2)												4.32		%																4.46		%																3.64		%
(1) Includes nonaccrual loans.
(2) Represents a non-GAAP financial measure. See the tables beginning on page 12 for a reconciliation of each non-GAAP measure to the most comparable GAAP equivalent.

8

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						For the six months ended
						June 30, 2023																		June 30, 2022
(In thousands)						Average Balance						Interest						Average Yield/Rate						Average Balance						Interest						Average Yield/Rate
Interest Earning Assets
Loans held-for-sale						$	57,097					$	1,623					5.68		%				$	65,689					$	1,963					5.98		%
Loans held-for-investment (1)						6,068,344						182,298						6.01		%				4,697,288						98,480						4.19		%
Investment securities						567,273						8,391						2.96		%				616,947						5,608						1.82		%
Interest-bearing cash and other assets						166,523						4,623						5.55		%				591,839						1,838						0.62		%
Total earning assets						6,859,237						196,935						5.74		%				5,971,763						107,889						3.61		%
Other assets						555,040																		450,652
Total assets						$	7,414,277																	$	6,422,415
Interest-bearing liabilities
Demand and NOW deposits						$	280,224					$	3,358					2.40		%				$	221,251					$	353					0.32		%
Savings deposits						458,969						936						0.41		%				492,510						224						0.09		%
Money market deposits						2,201,401						10,942						0.99		%				2,541,968						2,012						0.16		%
Certificates of deposits						1,233,810						19,672						3.19		%				450,604						1,157						0.51		%
Total deposits						4,174,404						34,908						1.67		%				3,706,333						3,746						0.20		%
Repurchase agreements						31,683						98						0.62		%				63,795						23						0.07		%
Total deposits and repurchase agreements						4,206,087						35,006						1.66		%				3,770,128						3,769						0.20		%
FHLB borrowings						463,142						11,438						4.94		%				112,562						919						1.63		%
Other long-term borrowings						80,370						2,539						6.32		%				84,161						3,331						7.91		%
Total interest-bearing liabilities						4,749,599						48,983						2.06		%				3,966,851						8,019						0.40		%
Noninterest-bearing deposits						1,731,468																		1,745,967
Other liabilities						126,343																		72,403
Stockholders' equity						806,867																		637,194
Total liabilities and stockholders' equity						$	7,414,277																	$	6,422,415
Net interest income												$	147,952																	$	99,870
Net interest spread												3.68		%																3.21		%
Net interest margin												4.31		%																3.34		%
Net interest margin (on FTE basis) (2)												4.39		%																3.43		%
(1) Includes nonaccrual loans.
(2) Represents a non-GAAP financial measure. See the tables beginning on page 12 for a reconciliation of each non-GAAP measure to the most comparable GAAP equivalent.

9

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Deposits:

($ in thousands)			June 30, 2023						March 31, 2023						June 30, 2023 vs March 31, 2023 % change						June 30, 2022						June 30, 2023 vs June 30, 2022 % change
Consumer
Noninterest bearing deposit accounts			$	375,583					$	399,008					(5.87)		%				$	397,354					(5.48)		%
Interest-bearing deposit accounts:
Demand and NOW deposits			34,731						25,284						37.36		%				27,183						27.77		%
Savings deposits			378,193						407,173						(7.12)		%				453,051						(16.52)		%
Money market deposits			1,174,883						1,296,099						(9.35)		%				1,667,482						(29.54)		%
Certificates of deposits			1,095,754						759,726						44.23		%				491,945						122.74		%
Total interest-bearing deposit accounts			2,683,561						2,488,282						7.85		%				2,639,661						1.66		%
Total consumer deposits			$	3,059,144					$	2,887,290					5.95		%				$	3,037,015					0.73		%
Business
Noninterest bearing deposit accounts			$	1,291,664					$	1,365,432					(5.40)		%				$	1,544,724					(16.38)		%
Interest-bearing deposit accounts:
Demand and NOW deposits			393,318						258,566						52.12		%				188,230						108.96		%
Savings deposits			55,994						59,308						(5.59)		%				58,293						(3.94)		%
Money market deposits			832,279						942,735						(11.72)		%				1,025,878						(18.87)		%
Certificates of deposits			518,019						480,935						7.71		%				78,882						556.70		%
Total interest-bearing deposit accounts			1,799,610						1,741,544						3.33		%				1,351,283						33.18		%
Total business customer deposits			$	3,091,274					$	3,106,976					(0.51)		%				$	2,896,007					6.74		%
Total deposits			$	6,150,418					$	5,994,266					2.61		%				$	5,933,022					3.66		%

Balance Sheet Ratios:

			June 30, 2023						March 31, 2023						June 30, 2022
Cash to total assets (1)			6.20		%				4.10		%				4.40		%
Loan to deposit ratio			100.08		%				101.11		%				90.81		%
Uninsured deposits to total deposits (2)			32.5		%				35.8		%				41.4		%
Uninsured and uncollateralized deposits to total deposits (2)			24.1		%				26.4		%				33.9		%
Wholesale borrowings to total liabilities (3)			8.2		%				8.5		%				2.5		%
Wholesale deposits and borrowings to total liabilities (3) (4)			14.9		%				15.4		%				3.2		%
(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 borrowings consists of FHLB overnight borrowings and term advances. (4) Wholesale deposits consists of brokered deposits included in our condensed consolidated balance sheets within certificate of deposit balances.

10

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Loan Portfolio:

($ in thousands)			June 30, 2023						March 31, 2023						June 30, 2023 vs March 31, 2023 % change						June 30, 2022						June 30, 2023 vs June 30, 2022 % change
Commercial and industrial			$	2,474,531					$	2,418,771					2.3		%				$	1,972,681					25.4		%
Commercial real estate:
Non-owner occupied			723,365						709,977						1.9		%				863,664						(16.2)		%
Owner occupied			643,191						659,999						(2.5)		%				624,433						3.0		%
Construction and land			316,399						320,193						(1.2)		%				262,785						20.4		%
Multifamily			100,464						103,767						(3.2)		%				78,316						28.3		%
Total commercial real estate			1,783,419						1,793,936						(0.6)		%				1,829,198						(2.5)		%
Residential real estate			1,082,991						1,046,047						3.5		%				840,264						28.9		%
Public Finance			611,748						597,850						2.3		%				602,905						1.5		%
Consumer			39,909						40,806						(2.2)		%				44,423						(10.2)		%
Other			162,492						163,565						(0.7)		%				98,457						65.0		%
Total loans, net of deferred costs, fees, premiums, and discounts			$	6,155,090					$	6,060,975					1.6		%				$	5,387,928					14.2		%

Asset Quality:

			As of and for the quarter ended																		As of and for the six months ended
($ in thousands)			June 30, 2023						March 31, 2023						June 30, 2022						June 30, 2023						June 30, 2022
Net charge-offs (recoveries)			$	717					$	54					$	(568)					$	771					$	170
Allowance for credit losses			$	77,362					$	74,459					$	56,077					$	77,362					$	56,077
Nonperforming loans, including nonaccrual loans, and accrual loans greater than 90 days past due (1)			$	67,840					$	32,833					$	29,621					$	67,840					$	29,621
Nonperforming assets (1)			$	77,979					$	39,191					$	35,012					$	77,979					$	35,012
Ratio of net charge-offs (recoveries) to average loans outstanding			0.05		%				—		%				(0.04)		%				0.03		%				0.01		%
Allowance for credit losses to total loans outstanding			1.26		%				1.23		%				1.04		%				1.26		%				1.04		%
Allowance for credit losses to total nonperforming loans (1)			114.04		%				226.78		%				189.32		%				114.04		%				189.32		%
Nonperforming loans to total loans (1)			1.10		%				0.54		%				0.55		%				1.10		%				0.55		%
Nonperforming assets to total assets (1)			1.00		%				0.51		%				0.50		%				1.00		%				0.50		%
(1) On January 1, 2023, we adopted ASU 2022-02, whereby we no longer recognize or account for TDRs. The loans previously classified as accrual TDRs are no longer considered nonperforming. We have adjusted prior periods to reflect this change in accounting.

11

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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, 2023						March 31, 2023						June 30, 2022						June 30, 2023						June 30, 2022
Tangible common stockholders’ equity:
Total common stockholders' equity (GAAP)			$	823,635					$	799,050					$	727,542					$	823,635					$	727,542
Less: Goodwill and other intangible assets:
Goodwill			(93,483)						(93,483)						(93,483)						(93,483)						(93,483)
Other intangible assets			(12,712)						(14,762)						(18,760)						(12,712)						(18,760)
Total tangible common stockholders' equity (non-GAAP) (1)			$	717,440					$	690,805					$	615,299					$	717,440					$	615,299
Tangible assets:
Total assets (GAAP)			$	7,797,344					$	7,610,456					$	7,060,692					$	7,797,344					$	7,060,692
Less: Goodwill and other intangible assets:
Goodwill			(93,483)						(93,483)						(93,483)						(93,483)						(93,483)
Other intangible assets			(12,712)						(14,762)						(18,760)						(12,712)						(18,760)
Total tangible assets (non-GAAP)			$	7,691,149					$	7,502,211					$	6,948,449					$	7,691,149					$	6,948,449
Tangible common stockholders’ equity to tangible assets:
Common stockholders' equity to total assets (GAAP)			10.56		%				10.50		%				10.30		%				10.56		%				10.30		%
Less: Impact of goodwill and other intangible assets			(1.23)		%				(1.29)		%				(1.44)		%				(1.23)		%				(1.44)		%
Tangible common stockholders' equity to tangible assets (non-GAAP) (1)			9.33		%				9.21		%				8.86		%				9.33		%				8.86		%
Tangible common stockholders’ equity to tangible assets, reflecting net unrealized losses on HTM securities, net of tax:
Total tangible common stockholders' equity (non-GAAP)			$	717,440					$	690,805					$	615,299					$	717,440					$	615,299
Less: Net unrealized losses on HTM securities, net of tax			(3,821)						(3,754)						(2,977)						(3,821)						(2,977)
Total tangible common stockholders’ equity less net unrealized losses on HTM securities, net of tax (non-GAAP)			$	713,619					$	687,051					$	612,322					$	713,619					$	612,322
Total tangible assets (non-GAAP)			$	7,691,149					$	7,502,211					$	6,948,449					$	7,691,149					$	6,948,449
Less: Net unrealized losses on HTM securities, net of tax			(3,821)						(3,754)						(2,977)						(3,821)						(2,977)
Total tangible assets less net unrealized losses on HTM securities, net of tax (non-GAAP)			$	7,687,328					$	7,498,457					$	6,945,472					$	7,687,328					$	6,945,472
Tangible common stockholders’ equity to tangible assets (non-GAAP)			9.33		%				9.21		%				8.86		%				9.33		%				8.86		%
Less: Net unrealized losses on HTM securities, net of tax			0.05		%				0.05		%				0.04		%				0.05		%				0.04		%
Tangible common stockholders’ equity to tangible assets reflecting net unrealized losses on HTM securities, net of tax (non-GAAP)			9.28		%				9.16		%				8.82		%				9.28		%				8.82		%
(1) For all periods presented tangible stockholders’ equity is the same as tangible common stockholders’ equity.

12

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			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, 2023						March 31, 2023						June 30, 2022						June 30, 2023						June 30, 2022
Tangible book value per common share:
Stockholders' equity (GAAP)			$	823,635					$	799,050					$	727,542					$	823,635					$	727,542
Tangible stockholders' equity (non-GAAP) (1)			$	717,440					$	690,805					$	615,299					$	717,440					$	615,299
Total common shares outstanding			24,941,468						24,920,984						24,850,954						24,941,468						24,850,954
Book value per common share (GAAP)			$	33.02					$	32.06					$	29.28					$	33.02					$	29.28
Tangible book value per common share (non-GAAP)			$	28.76					$	27.72					$	24.76					$	28.76					$	24.76
Net income excluding merger costs:
Net income (GAAP)			$	28,006					$	26,281					$	430					$	54,287					$	8,099
Add: Merger costs
Merger related expenses			—						—						18,448						—						18,751
Income tax effect on merger related expenses			—						—						(4,033)												(4,083)
Total merger costs			—						—						16,778						—						17,031
Net income excluding merger costs (non-GAAP)			$	28,006					$	26,281					$	17,208					$	54,287					$	25,130
Return on average total assets excluding merger costs:
Return on average total assets (ROAA) (GAAP)			1.49		%				1.44		%				0.02		%				1.46		%				0.25		%
Add: Impact of merger costs, net of tax			—		%				—		%				0.94		%				—		%				0.53		%
ROAA excluding merger costs (non-GAAP)			1.49		%				1.44		%				0.96		%				1.46		%				0.78		%
Return on average stockholders’ equity excluding merger costs:
Return on average stockholders' equity (ROAE) (GAAP)			13.54		%				13.37		%				0.23		%				13.46		%				2.54		%
Add: Impact of merger costs, net of tax			—		%				—		%				8.96		%				—		%				5.35		%
ROAE excluding merger costs (non-GAAP)			13.54		%				13.37		%				9.19		%				13.46		%				7.89		%
Efficiency ratio excluding merger related expenses:
Efficiency ratio (GAAP)			59.15		%				60.47		%				93.55		%				59.79		%				87.84		%
Less: Impact of merger related expenses			—		%				—		%				22.81		%				—		%				12.85		%
Efficiency ratio excluding merger related expenses (non-GAAP)			59.15		%				60.47		%				70.74		%				59.79		%				74.99		%
Diluted earnings per share excluding merger costs:
Diluted earnings per share (GAAP)			$	1.11					$	1.03					$	0.02					$	2.14					$	0.36
Add: Impact of merger costs, net of tax			—						—						0.66						—						0.77
Diluted earnings per share excluding merger costs (non-GAAP)			$	1.11					$	1.03					$	0.68					$	2.14					$	1.13
(1) For all periods presented tangible stockholders’ equity is the same as tangible common stockholders’ equity.

13

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			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, 2023						March 31, 2023						June 30, 2022						June 30, 2023						June 30, 2022
Fully tax equivalent (“FTE”) net interest income and net interest margin on FTE basis:
Net interest income (GAAP)			$	73,835					$	74,117					$	58,585					$	147,952					$	99,870
Gross income effect of tax exempt income			1,288						1,242						1,284						2,530						2,605
FTE net interest income (non-GAAP)			$	75,123					$	75,359					$	59,869					$	150,482					$	102,475
Average earning assets			$	6,961,407					$	6,755,933					$	6,577,173					$	6,859,237					$	5,971,763
Net interest margin			4.24		%				4.39		%				3.56		%				4.31		%				3.34		%
Net interest margin on FTE basis (non-GAAP)			4.32		%				4.46		%				3.64		%				4.39		%				3.43		%

14

Cover	Jul. 27, 2023
Cover [Abstract]
Document Type	8-K
Document Period End Date	Jul. 27, 2023
Entity Registrant Name	FIRSTSUN CAPITAL BANCORP
Entity Incorporation, State or Country Code	DE
Entity File Number	333-258176
Entity Tax Identification Number	81-4552413
Entity Address, Address Line One	1400 16th Street
Entity Address, Address Line Two	Suite 250
Entity Address, City or Town	Denver
Entity Address, State or Province	CO
Entity Address, Postal Zip Code	80202
City Area Code	303
Local Phone Number	831-6704
Written Communications	false
Soliciting Material	false
Pre-commencement Tender Offer	false
Pre-commencement Issuer Tender Offer	false
Entity Emerging Growth Company	true
Entity Ex Transition Period	false
Entity Central Index Key	0001709442
Amendment Flag	false

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