Form 8-K - Current report

0001709442FALSE00017094422023-10-272023-10-27

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): October 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 October 27, 2023, FirstSun Capital Bancorp issued an earnings press release announcing financial results for the third quarter ended September 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 October 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: October 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 Third Quarter 2023 Results

Third Quarter 2023 Highlights:

•Net income of $25.2 million, $1.00 per diluted share

•Net interest margin of 4.23%

•Return on average total assets of 1.34%

•Return on average stockholders’ equity of 12.03%

•Average deposit growth of 24.0% annualized

•Loan growth of 1.6% annualized

•20.3% noninterest income to total revenue1

Denver, Colorado – October 27, 2023 – FirstSun Capital Bancorp (“FirstSun”) (OTCQX: FSUN) reported net income of $25.2 million for the third quarter of 2023 compared to net income of $26.5 million for the third quarter of 2022. Earnings per diluted share were $1.00 for the third quarter of 2023 compared to $1.04 for the third quarter of 2022.

Neal Arnold, FirstSun’s President and Chief Executive Officer, commented, “We are pleased to deliver another strong quarter as our focus on growing our C&I and consumer relationships across all of our Southwest markets continues to yield favorable results. Among the highlights this quarter were our strong deposit growth and a stable net interest margin of 4.23%, amidst sharply declining trends in the banking industry as a whole. We believe our balanced business mix, our consistent focus on carefully growing our C&I and consumer businesses as well as our service fee businesses, along with our strong capital base and loan portfolio credit quality provides us with the flexibility to continue to be opportunistic in this environment adding business relationships across the footprint. I want to thank all of our hard-working employees across all of our markets as their dedication to customer service has continued to drive our business growth and success this year.”

Third Quarter 2023 Results

Net income totaled $25.2 million, or $1.00 per diluted share, during the third quarter of 2023, compared to $28.0 million, or $1.11 per diluted share, during the prior quarter. The return on average total assets was 1.34% in the third quarter of 2023, compared to 1.49% in the prior quarter, and the return on average stockholders’ equity was 12.03% in the third quarter of 2023, compared to 13.54% in the prior quarter.

Net Interest Income and Net Interest Margin

Net interest income totaled $73.4 million during the third quarter of 2023, a decrease of $0.4 million compared to the prior quarter. Our net interest margin decreased one basis point to 4.23% compared to the prior quarter. Results in the third quarter of 2023, compared to the prior quarter, were driven by an increase of 42 basis points in the cost of interest-bearing liabilities, partially offset by an increase of 29 basis points in yield on earning assets.

Average loans, including loans held-for-sale, decreased by $40.1 million in the third quarter of 2023, compared to the prior quarter. Loan yield increased by 31 basis points to 6.44% in the third 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 $0.4 billion in the third quarter of 2023, compared to the prior quarter. Total cost of deposits increased by 70 basis points to 2.64% in the third quarter of 2023, compared to the prior quarter, primarily due to rising deposit costs as a result of the elevated interest rate environment and an increasing mix of certificates of deposits. Average FHLB borrowings decreased $0.4 billion in the third quarter of 2023, compared to the prior quarter. The cost of FHLB borrowings increased by 21 basis points to 5.40% in the third quarter of 2023, compared to the prior quarter, primarily due to the rising interest rate environment.

1 Total revenue is net interest income plus noninterest income.

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Asset Quality and Provision for Credit Losses

The provision for credit losses totaled $3.9 million during the third quarter of 2023, a decrease of $0.5 million from $4.4 million in the prior quarter, primarily due to slower loan growth.

Net charge-offs during the third quarter of 2023 were $2.3 million, resulting in an annualized ratio of net charge-offs to average loans of 0.15%, compared to net charge-offs of $0.7 million, resulting in an annualized ratio of net-charge offs to average loans of 0.05% in the prior quarter. The allowance for credit losses as a percentage of total loans was 1.27% at September 30, 2023, an increase of one basis point from the prior quarter.

The ratio of nonperforming assets to total assets was 0.63% at September 30, 2023, compared to 1.00% at June 30, 2023.

Noninterest Income

Noninterest income totaled $18.7 million during the third quarter of 2023, a decrease of $5.6 million from the prior quarter. Mortgage banking income decreased $4.2 million during the third quarter of 2023, primarily due to lesser fair value gains on our mortgage servicing rights portfolio, net of derivative activity. Other noninterest income decreased $1.4 million during the third quarter of 2023, primarily due to a write-down of an other real estate owned property and a decrease in customer accommodation swap transaction fees. Noninterest income as a percentage of total revenue2 was 20.3%, a decrease of 4.5% from the prior quarter.

Noninterest Expense

Noninterest expense totaled $56.2 million during the third quarter of 2023, a decrease of $1.9 million from the prior quarter. Amortization of intangible assets decreased $1.2 million from the prior quarter. Other noninterest expense decreased $0.9 million primarily due to lower legal and professional fees.

The efficiency ratio for the third quarter of 2023 was 61.02% compared to 59.15% in the prior quarter.

Tax Rate

The effective tax rate was 21.1% in the third quarter of 2023, compared to 21.5% in the prior quarter.

Loans

Loans were $6.2 billion at September 30, 2023, compared to $6.2 billion at June 30, 2023, an increase of $24.4 million in the third quarter of 2023, or 1.6% on an annualized basis.

Deposits

Average deposits were $6.3 billion for the third quarter of 2023, compared to $6.0 billion for the prior quarter, an increase of $358.7 million in the third quarter of 2023, or 24.0% on an annualized basis. Noninterest-bearing deposit accounts represented 25.4% of total deposits at September 30, 2023 and the loan-to-deposit ratio was 97.5% at September 30, 2023.

The ratio of total uninsured deposits to total deposits was estimated to be 32.0% at September 30, 2023, compared to 32.5% at June 30, 2023. The ratio of total uninsured and uncollateralized deposits to total deposits was estimated to be 25.4% at September 30, 2023, compared to 24.1% at June 30, 2023.3

2 Total revenue is net interest income plus noninterest income.

3 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 September 30, 2023, our common equity tier 1 risk-based capital ratio was 10.79%, total risk-based capital ratio was 12.93% and tier 1 leverage ratio was 10.37%. Book value per common share was $33.83 at September 30, 2023, an increase of $0.81 from June 30, 2023. Tangible book value per common share, a non-GAAP financial measure, was $29.60 at September 30, 2023, an increase of $0.84 from June 30, 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 September 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 nine months ended
($ in thousands, except per share amounts)			September 30, 2023						June 30, 2023						September 30, 2022						September 30, 2023						September 30, 2022
Net interest income			$	73,410					$	73,835					$	68,486					$	221,362					$	168,356
Provision for credit losses			3,890						4,422						3,750						11,672						12,450
Noninterest income			18,650						24,290						24,953						61,871						70,948
Noninterest expense			56,176						58,043						55,548						170,485						183,683
Income before income taxes			31,994						35,660						34,141						101,076						43,171
Provision for income taxes			6,762						7,654						7,628						21,557						8,559
Net income			25,232						28,006						26,513						79,519						34,612
Net income, excluding merger costs (1)			25,232						28,006						26,513						79,519						51,643
Diluted earnings per share			$	1.00					$	1.11					$	1.04					$	3.13					$	1.49
Diluted earnings per share, excluding merger costs (1)			$	1.00					$	1.11					$	1.04					$	3.13					$	2.22
Return on average total assets			1.34		%				1.49		%				1.52		%				1.42		%				0.70		%
Return on average total assets, excluding merger costs (1)			1.34		%				1.49		%				1.52		%				1.42		%				1.04		%
Return on average stockholders' equity			12.03		%				13.54		%				14.50		%				12.97		%				6.90		%
Return on average stockholders’ equity, excluding merger costs (1)			12.03		%				13.54		%				14.50		%				12.97		%				10.29		%
Net interest margin			4.23		%				4.24		%				4.26		%				4.28		%				3.66		%
Net interest margin (FTE basis) (1)			4.30		%				4.32		%				4.31		%				4.36		%				3.75		%
Efficiency ratio			61.02		%				59.15		%				59.45		%				60.19		%				76.76		%
Efficiency ratio, excluding merger related expenses (1)			61.02		%				59.15		%				59.45		%				60.19		%				68.92		%
Noninterest income to total revenue (2)			20.3		%				24.8		%				26.7		%				21.8		%				29.6		%
Total assets			$	7,756,875					$	7,797,344					$	7,052,917					$	7,756,875					$	7,052,917
Total loans held-for-sale			51,465						56,350						67,535						51,465						67,535
Total loans held-for-investment			6,179,522						6,155,090						5,556,686						6,179,522						5,556,686
Total deposits			6,339,847						6,150,418						5,760,418						6,339,847						5,760,418
Total stockholders' equity			843,719						823,635						750,653						843,719						750,653
Loan to deposit ratio			97.5		%				100.1		%				96.5		%				97.5		%				96.5		%
Book value per common share			$	33.83					$	33.02					$	30.14					$	33.83					$	30.14
Tangible book value per common share (1)			$	29.60					$	28.76					$	25.67					$	29.60					$	25.67
(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) Total revenue is net interest income plus noninterest income.

    

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Condensed Consolidated Statements of Income (Unaudited):

			As of and for the quarter ended																		As of and for the nine months ended
($ in thousands, except per share amounts)			September 30, 2023						June 30, 2023						September 30, 2022						September 30, 2023						September 30, 2022
Total interest income			$	106,775					$	102,032					$	73,763					$	303,710					$	181,652
Total interest expense			33,365						28,197						5,277						82,348						13,296
Net interest income			73,410						73,835						68,486						221,362						168,356
Provision for credit losses			3,890						4,422						3,750						11,672						12,450
Net interest income after provision for credit losses			69,520						69,413						64,736						209,690						155,906
Noninterest income:
Service charges on deposits			5,475						5,358						4,807						15,848						13,111
Credit and debit card fees			2,996						3,057						3,103						9,034						8,508
Trust and investment advisory fees			1,398						1,478						1,552						4,337						5,408
Mortgage banking income, net			7,413						11,659						13,785						26,501						40,017
Other noninterest income			1,368						2,738						1,706						6,151						3,904
Total noninterest income			18,650						24,290						24,953						61,871						70,948
Noninterest expense:
Salaries and benefits			33,968						34,056						32,508						103,073						101,981
Occupancy and equipment			8,216						7,948						8,216						24,338						22,802
Amortization of intangible assets			899						2,050						935						3,993						2,197
Merger related expenses			—						—						—						—						18,751
Other noninterest expenses			13,093						13,989						13,889						39,081						37,952
Total noninterest expense			56,176						58,043						55,548						170,485						183,683
Income before income taxes			31,994						35,660						34,141						101,076						43,171
Provision for income taxes			6,762						7,654						7,628						21,557						8,559
Net income			$	25,232					$	28,006					$	26,513					$	79,519					$	34,612
Earnings per share - basic			$	1.01					$	1.12					$	1.07					$	3.19					$	1.53
Earnings per share - diluted			$	1.00					$	1.11					$	1.04					$	3.13					$	1.49

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Condensed Consolidated Balance Sheets as of (Unaudited):

($ in thousands)			September 30, 2023						June 30, 2023						September 30, 2022
Assets
Cash and cash equivalents			$	443,887					$	492,735					$	325,039
Securities available-for-sale, at fair value			495,992						515,956						551,165
Securities held-to-maturity			37,410						37,883						39,148
Loans held-for-sale, at fair value			51,465						56,350						67,535
Loans			6,179,522						6,155,090						5,556,686
Allowance for credit losses			(78,666)						(77,362)						(59,678)
Loans, net			6,100,856						6,077,728						5,497,008
Mortgage servicing rights, at fair value			81,036						78,390						73,850
Premises and equipment, net			83,733						84,483						88,490
Other real estate owned and foreclosed assets, net			8,395						10,139						5,391
Goodwill			93,483						93,483						93,483
Intangible assets, net			11,813						12,712						17,825
All other assets			348,805						337,485						293,983
Total assets			$	7,756,875					$	7,797,344					$	7,052,917
Liabilities and Stockholders' Equity
Liabilities:
Deposits:
Noninterest-bearing demand deposit accounts			$	1,610,650					$	1,667,247					$	1,946,215
Interest-bearing deposit accounts:
Interest-bearing demand accounts			440,845						379,779						160,082
Savings and money market accounts			2,476,097						2,441,349						3,008,433
NOW accounts			35,686						48,270						46,128
Certificate of deposit accounts			1,776,569						1,613,773						599,560
Total deposits			6,339,847						6,150,418						5,760,418
Securities sold under agreements to repurchase			25,868						32,861						51,256
Federal Home Loan Bank advances			330,000						570,585						310,872
Other borrowings			75,180						80,511						80,097
Other liabilities			142,261						139,334						99,621
Total liabilities			6,913,156						6,973,709						6,302,264
Stockholders' equity:
Preferred stock			—						—						—
Common stock			2						2						2
Additional paid-in capital			462,507						461,856						460,530
Retained earnings			433,508						408,276						333,227
Accumulated other comprehensive loss, net			(52,298)						(46,499)						(43,106)
Total stockholders' equity			843,719						823,635						750,653
Total liabilities and stockholders' equity			$	7,756,875					$	7,797,344					$	7,052,917

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Share Data:

			As of and for the quarter ended																		As of and for the nine months ended
			September 30, 2023						June 30, 2023						September 30, 2022						September 30, 2023						September 30, 2022
Weighted average common shares outstanding, basic			24,942,389						24,933,664						24,877,607						24,933,168						22,685,496
Weighted average common shares outstanding, diluted			25,357,807						25,206,359						25,494,315						25,365,297						23,281,933
Period end common shares outstanding			24,942,645						24,941,468						24,906,032						24,942,645						24,906,032
Book value per common share			$	33.83					$	33.02					$	30.14					$	33.83					$	30.14
Tangible book value per common share (1)			$	29.60					$	28.76					$	25.67					$	29.60					$	25.67

Consolidated Capital Ratios as of:

			September 30, 2023						June 30, 2023						September 30, 2022
Stockholders' equity to total assets			10.88		%				10.56		%				10.64		%
Tangible common stockholders' equity to tangible assets (1)			9.65		%				9.33		%				9.21		%
Tangible common stockholders' equity to tangible assets reflecting net unrealized losses on HTM securities, net of tax (1) (2)			9.59		%				9.28		%				9.16		%
Tier 1 leverage ratio			10.37		%				10.00		%				9.55		%
Common equity tier 1 risk-based capital ratio			10.79		%				10.40		%				9.99		%
Tier 1 risk-based capital ratio			10.79		%				10.40		%				9.99		%
Total risk-based capital ratio			12.93		%				12.52		%				12.06		%
(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 September 30, 2023																		For the quarter ended June 30, 2023																		For the quarter ended  September 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 (1)						6,180,684						99,565						6.44		%				6,220,833						95,320						6.13		%				5,512,846						68,270						4.95		%
Investment securities						545,257						4,226						3.10		%				563,902						4,227						3.00		%				613,325						3,644						2.38		%
Interest-bearing cash and other assets						221,559						2,984						5.39		%				176,672						2,485						5.63		%				308,482						1,849						2.40		%
Total earning assets						6,947,500						106,775						6.15		%				6,961,407						102,032						5.86		%				6,434,653						73,763						4.59		%
Other assets						557,988																		556,105																		519,663
Total assets						$	7,505,488																	$	7,517,512																	$	6,954,316
Interest-bearing liabilities
Demand and NOW deposits						$	466,837					$	3,813					3.27		%				$	332,695					$	2,124					2.55		%				$	202,290					$	495					0.98		%
Savings deposits						439,172						680						0.62		%				448,059						491						0.44		%				506,548						227						0.18		%
Money market deposits						2,026,028						7,997						1.58		%				2,107,379						5,874						1.11		%				2,617,452						1,632						0.25		%
Certificates of deposits						1,748,515						18,406						4.21		%				1,392,847						12,240						3.52		%				593,479						920						0.62		%
Total deposits						4,680,552						30,896						2.64		%				4,280,980						20,729						1.94		%				3,919,769						3,274						0.33		%
Repurchase agreements						26,549						65						0.98		%				33,673						68						0.80		%				51,264						51						0.40		%
Total deposits and repurchase agreements						4,707,101						30,961						2.63		%				4,314,653						20,797						1.93		%				3,971,033						3,325						0.33		%
FHLB borrowings						84,332						1,139						5.40		%				472,105						6,121						5.19		%				160,310						761						1.90		%
Other long-term borrowings						78,680						1,265						6.44		%				80,440						1,279						6.36		%				80,031						1,191						5.95		%
Total interest-bearing liabilities						4,870,113						33,365						2.74		%				4,867,198						28,197						2.32		%				4,211,374						5,277						0.50		%
Noninterest-bearing deposits						1,654,090																		1,694,961																		1,924,055
Other liabilities						142,027																		128,118																		87,338
Stockholders' equity						839,258																		827,235																		731,549
Total liabilities and stockholders' equity						$	7,505,488																	$	7,517,512																	$	6,954,316
Net interest income												$	73,410																	$	73,835																	$	68,486
Net interest spread												3.41		%																3.54		%																4.09		%
Net interest margin												4.23		%																4.24		%																4.26		%
Net interest margin (on FTE basis) (2)												4.30		%																4.32		%																4.31		%
(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 12 for a reconciliation of each non-GAAP measure to the most comparable GAAP equivalent.

8

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						For the nine months ended
						September 30, 2023																		September 30, 2022
(In thousands)						Average Balance						Interest						Average Yield/Rate						Average Balance						Interest						Average Yield/Rate
Interest Earning Assets
Loans (1)						6,144,057						283,486						6.15		%				5,015,680						168,713						4.48		%
Investment securities						559,855						12,617						3.00		%				615,726						9,252						2.00		%
Interest-bearing cash and other assets						187,468						7,607						5.41		%				496,349						3,687						0.99		%
Total earning assets						6,891,380						303,710						5.88		%				6,127,755						181,652						3.95		%
Other assets						553,628																		473,909
Total assets						$	7,445,008																	$	6,601,664
Interest-bearing liabilities
Demand and NOW deposits						$	343,112					$	7,171					2.79		%				$	214,862					$	848					0.53		%
Savings deposits						452,298						1,616						0.48		%				497,240						451						0.12		%
Money market deposits						2,142,301						18,939						1.18		%				2,567,406						3,644						0.19		%
Certificates of deposits						1,407,264						38,078						3.61		%				498,753						2,077						0.56		%
Total deposits						4,344,975						65,804						2.02		%				3,778,261						7,020						0.25		%
Repurchase agreements						29,953						163						0.73		%				59,572						74						0.17		%
Total deposits and repurchase agreements						4,374,928						65,967						2.01		%				3,837,833						7,094						0.25		%
FHLB borrowings						335,485						12,576						5.00		%				128,654						1,680						1.74		%
Other long-term borrowings						79,801						3,805						6.36		%				82,768						4,522						7.28		%
Total interest-bearing liabilities						4,790,214						82,348						2.29		%				4,049,255						13,296						0.44		%
Noninterest-bearing deposits						1,705,392																		1,805,982
Other liabilities						131,628																		77,436
Stockholders' equity						817,774																		668,991
Total liabilities and stockholders' equity						$	7,445,008																	$	6,601,664
Net interest income												$	221,362																	$	168,356
Net interest spread												3.59		%																3.51		%
Net interest margin												4.28		%																3.66		%
Net interest margin (on FTE basis) (2)												4.36		%																3.75		%
(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 12 for a reconciliation of each non-GAAP measure to the most comparable GAAP equivalent.

9

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Deposits:

($ in thousands)			September 30, 2023						June 30, 2023						September 30, 2023 vs June 30, 2023 % change						September 30, 2022						September 30, 2023 vs September 30, 2022 % change
Consumer
Noninterest bearing deposit accounts			$	366,366					$	375,583					(2.45)		%				$	419,977					(12.77)		%
Interest-bearing deposit accounts:
Demand and NOW deposits			33,340						34,731						(4.01)		%				26,612						25.28		%
Savings deposits			356,890						378,193						(5.63)		%				445,956						(19.97)		%
Money market deposits			1,149,365						1,174,883						(2.17)		%				1,538,567						(25.30)		%
Certificates of deposits			1,366,255						1,095,754						24.69		%				531,400						157.10		%
Total interest-bearing deposit accounts			2,905,850						2,683,561						8.28		%				2,542,535						14.29		%
Total consumer deposits			$	3,272,216					$	3,059,144					6.97		%				$	2,962,512					10.45		%
Business
Noninterest bearing deposit accounts			$	1,244,284					$	1,291,664					(3.67)		%				$	1,526,238					(18.47)		%
Interest-bearing deposit accounts:
Demand and NOW deposits			443,191						393,318						12.68		%				179,598						146.77		%
Savings deposits			85,234						30,904						175.80		%				34,490						147.13		%
Money market deposits			859,516						832,279						3.27		%				964,386						(10.87)		%
Certificates of deposits			77,228						77,604						(0.48)		%				49,670						55.48		%
Total interest-bearing deposit accounts			1,465,169						1,334,105						9.82		%				1,228,144						19.30		%
Total business deposits			$	2,709,453					$	2,625,769					3.19		%				$	2,754,382					(1.63)		%
Wholesale deposits (1)			$	358,178					$	465,505					(23.06)		%				$	43,524					722.94		%
Total deposits			$	6,339,847					$	6,150,418					3.08		%				$	5,760,418					10.06		%
(1) Wholesale deposits consist of brokered deposits included in our condensed consolidated balance sheets within certificates of deposits and savings and money market accounts.

Balance Sheet Ratios:

			September 30, 2023						June 30, 2023						September 30, 2022
Cash to total assets (1)			5.60		%				6.20		%				2.10		%
Loan to deposit ratio			97.5		%				100.1		%				96.5		%
Uninsured deposits to total deposits (2)			32.0		%				32.5		%				42.7		%
Uninsured and uncollateralized deposits to total deposits (2)			25.4		%				24.1		%				31.8		%
Wholesale deposits and borrowings to total liabilities (3)			10.0		%				14.9		%				5.6		%
(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 consist of brokered deposits included in our condensed consolidated balance sheets within certificates of deposits and savings and money market accounts. Wholesale borrowings consist of FHLB overnight and term advances.

10

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Loan Portfolio:

($ in thousands)			September 30, 2023						June 30, 2023						September 30, 2023 vs June 30, 2023 % change						September 30, 2022						September 30, 2023 vs September 30, 2022 % change
Commercial and industrial			$	2,459,358					$	2,474,531					(0.6)		%				$	2,049,294					20.0		%
Commercial real estate:
Non-owner occupied			767,135						723,365						6.1		%				821,262						(6.6)		%
Owner occupied			631,352						643,191						(1.8)		%				657,853						(4.0)		%
Construction and land			329,433						316,399						4.1		%				293,201						12.4		%
Multifamily			114,535						100,464						14.0		%				90,380						26.7		%
Total commercial real estate			1,842,455						1,783,419						3.3		%				1,862,696						(1.1)		%
Residential real estate			1,059,074						1,082,991						(2.2)		%				912,776						16.0		%
Public Finance			602,844						611,748						(1.5)		%				591,171						2.0		%
Consumer			37,681						39,909						(5.6)		%				43,146						(12.7)		%
Other			178,110						162,492						9.6		%				97,603						82.5		%
Total loans, net of deferred costs, fees, premiums, and discounts			$	6,179,522					$	6,155,090					0.4		%				$	5,556,686					11.2		%

Asset Quality:

			As of and for the quarter ended																		As of and for the nine months ended
($ in thousands)			September 30, 2023						June 30, 2023						September 30, 2022						September 30, 2023						September 30, 2022
Net charge-offs (recoveries)			$	2,296					$	717					$	149					$	3,067					$	319
Allowance for credit losses			$	78,666					$	77,362					$	59,678					$	78,666					$	59,678
Nonperforming loans, including nonaccrual loans, and accrual loans greater than 90 days past due (1)			$	40,743					$	67,840					$	34,031					$	40,743					$	34,031
Nonperforming assets (1)			$	49,138					$	77,979					$	39,422					$	49,138					$	39,422
Ratio of net charge-offs (recoveries) to average loans outstanding			0.15		%				0.05		%				0.01		%				0.07		%				0.01		%
Allowance for credit losses to total loans outstanding			1.27		%				1.26		%				1.07		%				1.27		%				1.07		%
Allowance for credit losses to total nonperforming loans (1)			193.08		%				114.04		%				175.36		%				193.08		%				175.36		%
Nonperforming loans to total loans (1)			0.66		%				1.10		%				0.61		%				0.66		%				0.61		%
Nonperforming assets to total assets (1)			0.63		%				1.00		%				0.56		%				0.63		%				0.56		%
(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 nine months ended
($ in thousands, except share and per share amounts)			September 30, 2023						June 30, 2023						September 30, 2022						September 30, 2023						September 30, 2022
Tangible common stockholders’ equity:
Total common stockholders' equity (GAAP)			$	843,719					$	823,635					$	750,653					$	843,719					$	750,653
Less: Goodwill and other intangible assets:
Goodwill			(93,483)						(93,483)						(93,483)						(93,483)						(93,483)
Other intangible assets			(11,813)						(12,712)						(17,825)						(11,813)						(17,825)
Total tangible common stockholders' equity (non-GAAP) (1)			$	738,423					$	717,440					$	639,345					$	738,423					$	639,345
Tangible assets:
Total assets (GAAP)			$	7,756,875					$	7,797,344					$	7,052,917					$	7,756,875					$	7,052,917
Less: Goodwill and other intangible assets:
Goodwill			(93,483)						(93,483)						(93,483)						(93,483)						(93,483)
Other intangible assets			(11,813)						(12,712)						(17,825)						(11,813)						(17,825)
Total tangible assets (non-GAAP)			$	7,651,579					$	7,691,149					$	6,941,609					$	7,651,579					$	6,941,609
Tangible common stockholders’ equity to tangible assets:
Common stockholders' equity to total assets (GAAP)			10.88		%				10.56		%				10.64		%				10.88		%				10.64		%
Less: Impact of goodwill and other intangible assets			(1.23)		%				(1.23)		%				(1.43)		%				(1.23)		%				(1.43)		%
Tangible common stockholders' equity to tangible assets (non-GAAP) (1)			9.65		%				9.33		%				9.21		%				9.65		%				9.21		%
Tangible common stockholders’ equity to tangible assets, reflecting net unrealized losses on HTM securities, net of tax:
Total tangible common stockholders' equity (non-GAAP)			$	738,423					$	717,440					$	639,345					$	738,423					$	639,345
Less: Net unrealized losses on HTM securities, net of tax			(5,001)						(3,821)						(3,810)						(5,001)						(3,810)
Total tangible common stockholders’ equity less net unrealized losses on HTM securities, net of tax (non-GAAP)			$	733,422					$	713,619					$	635,535					$	733,422					$	635,535
Total tangible assets (non-GAAP)			$	7,651,579					$	7,691,149					$	6,941,609					$	7,651,579					$	6,941,609
Less: Net unrealized losses on HTM securities, net of tax			(5,001)						(3,821)						(3,810)						(5,001)						(3,810)
Total tangible assets less net unrealized losses on HTM securities, net of tax (non-GAAP)			$	7,646,578					$	7,687,328					$	6,937,799					$	7,646,578					$	6,937,799
Tangible common stockholders’ equity to tangible assets (non-GAAP)			9.65		%				9.33		%				9.21		%				9.65		%				9.21		%
Less: Net unrealized losses on HTM securities, net of tax			(0.06)		%				(0.05)		%				(0.05)		%				(0.06)		%				(0.05)		%
Tangible common stockholders’ equity to tangible assets reflecting net unrealized losses on HTM securities, net of tax (non-GAAP)			9.59		%				9.28		%				9.16		%				9.59		%				9.16		%
(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 nine months ended
($ in thousands, except share and per share amounts)			September 30, 2023						June 30, 2023						September 30, 2022						September 30, 2023						September 30, 2022
Tangible book value per common share:
Stockholders' equity (GAAP)			$	843,719					$	823,635					$	750,653					$	843,719					$	750,653
Tangible stockholders' equity (non-GAAP) (1)			$	738,423					$	717,440					$	639,345					$	738,423					$	639,345
Total common shares outstanding			24,942,645						24,941,468						24,906,032						24,942,645						24,906,032
Book value per common share (GAAP)			$	33.83					$	33.02					$	30.14					$	33.83					$	30.14
Tangible book value per common share (non-GAAP)			$	29.60					$	28.76					$	25.67					$	29.60					$	25.67
Net income excluding merger costs:
Net income (GAAP)			$	25,232					$	28,006					$	26,513					$	79,519					$	34,612
Add: Merger costs
Merger related expenses			—						—						—						—						18,751
Income tax effect on merger related expenses			—						—						—						—						(4,083)
Provision for loan loss on Pioneer loans marked at a premium			—						—						—						—						2,884
Income tax effect on provision for loan loss on Pioneer loans marked at a premium			—						—						—						—						(521)
Total merger costs			—						—						—						—						17,031
Net income excluding merger costs (non-GAAP)			$	25,232					$	28,006					$	26,513					$	79,519					$	51,643
Return on average total assets excluding merger costs:
Return on average total assets (ROAA) (GAAP)			1.34		%				1.49		%				1.52		%				1.42		%				0.70		%
Add: Impact of merger costs, net of tax			—		%				—		%				—		%				—		%				0.34		%
ROAA excluding merger costs (non-GAAP)			1.34		%				1.49		%				1.52		%				1.42		%				1.04		%
Return on average stockholders’ equity excluding merger costs:
Return on average stockholders' equity (ROAE) (GAAP)			12.03		%				13.54		%				14.50		%				12.97		%				6.90		%
Add: Impact of merger costs, net of tax			—		%				—		%				—		%				—		%				3.39		%
ROAE excluding merger costs (non-GAAP)			12.03		%				13.54		%				14.50		%				12.97		%				10.29		%
Efficiency ratio excluding merger related expenses:
Efficiency ratio (GAAP)			61.02		%				59.15		%				59.45		%				60.19		%				76.76		%
Less: Impact of merger related expenses			—		%				—		%				—		%				—		%				(7.84)		%
Efficiency ratio excluding merger related expenses (non-GAAP)			61.02		%				59.15		%				59.45		%				60.19		%				68.92		%
Diluted earnings per share excluding merger costs:
Diluted earnings per share (GAAP)			$	1.00					$	1.11					$	1.04					$	3.13					$	1.49
Add: Impact of merger costs, net of tax			—						—						—						—						0.73
Diluted earnings per share excluding merger costs (non-GAAP)			$	1.00					$	1.11					$	1.04					$	3.13					$	2.22
(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 nine months ended
($ in thousands, except share and per share amounts)			September 30, 2023						June 30, 2023						September 30, 2022						September 30, 2023						September 30, 2022
Fully tax equivalent (“FTE”) net interest income and net interest margin on FTE basis:
Net interest income (GAAP)			$	73,410					$	73,835					$	68,486					$	221,362					$	168,356
Gross income effect of tax exempt income			1,286						1,288						1,236						3,816						3,841
FTE net interest income (non-GAAP)			$	74,696					$	75,123					$	69,722					$	225,178					$	172,197
Average earning assets			$	6,947,500					$	6,961,407					$	6,434,653					$	6,891,380					$	6,127,755
Net interest margin			4.23		%				4.24		%				4.26		%				4.28		%				3.66		%
Net interest margin on FTE basis (non-GAAP)			4.30		%				4.32		%				4.31		%				4.36		%				3.75		%

14

Cover	Oct. 27, 2023
Cover [Abstract]
Document Type	8-K
Document Period End Date	Oct. 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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