FirstSun Capital Bancorp Sees Q3 Net Income Rise Amidst Asset Growth

Ticker: FSUN · Form: 10-Q · Filed: Nov 7, 2025 · CIK: 1709442

Sentiment: mixed

Topics: Regional Banking, Financial Performance, Mergers & Acquisitions, Credit Risk, Deposit Growth, Net Interest Income, Mortgage Banking

Related Tickers: FSUN, FFWM

TL;DR

**FSUN is growing deposits and loans, but watch that credit loss provision – they're getting cautious.**

AI Summary

FIRSTSUN CAPITAL BANCORP reported a net income of $23.174 million for the three months ended September 30, 2025, an increase from $22.422 million in the prior year period. For the nine months ended September 30, 2025, net income rose to $73.129 million from $59.278 million in 2024. Total assets increased to $8.495 billion as of September 30, 2025, up from $8.097 billion at December 31, 2024. Loans, net of allowance for credit losses, grew to $6.597 billion from $6.288 billion. Total deposits also saw a significant rise, reaching $7.105 billion from $6.672 billion. The company's net interest income for the three months ended September 30, 2025, was $80.953 million, up from $76.158 million, while noninterest income increased to $26.333 million from $22.075 million, driven by a rise in mortgage banking services income to $12.641 million. The provision for credit losses increased to $10.100 million for the quarter, compared to $5.000 million in the same period last year, indicating a more cautious lending outlook. Strategic outlook includes a proposed merger with First Foundation, which is subject to stockholder and governmental approvals, posing a key risk.

Why It Matters

FirstSun Capital Bancorp's consistent growth in net income and assets signals a robust financial position, which is crucial for investor confidence, especially given the competitive banking landscape. The proposed merger with First Foundation, if successful, could significantly alter its market footprint and competitive standing, potentially leading to increased market share and operational efficiencies. However, the increased provision for credit losses suggests a more conservative approach to lending, which could impact future profitability but also mitigate risk for investors. Employees and customers could see changes in services and opportunities post-merger, depending on integration success and strategic alignment.

Risk Assessment

Risk Level: medium — The risk level is medium due to the increased provision for credit losses, which rose to $10.100 million for the three months ended September 30, 2025, from $5.000 million in the prior year, indicating potential concerns about loan quality. Additionally, the proposed merger with First Foundation introduces significant execution risks, including the failure to obtain necessary stockholder and governmental approvals, as explicitly stated in the 'Cautionary Note Regarding Forward-Looking Statements'.

Analyst Insight

Investors should monitor the progress of the First Foundation merger closely, as its success or failure will significantly impact FSUN's future trajectory. Pay attention to subsequent filings for updates on regulatory approvals and integration plans. Given the rising provision for credit losses, investors should also scrutinize the company's loan portfolio quality and economic outlook in future reports.

Financial Highlights

debt To Equity
0.07
revenue
$107.286M
total Assets
$8.495B
total Debt
$76.163M
net Income
$23.174M
cash Position
$659.899M
revenue Growth
+11.98%

Revenue Breakdown

SegmentRevenueGrowth
Net Interest Income$80.953M+6.30%
Noninterest Income$26.333M+19.30%
Mortgage Banking Services Income$12.641M+43.04%

Key Numbers

Key Players & Entities

FAQ

What were FIRSTSUN CAPITAL BANCORP's net income figures for Q3 2025?

FIRSTSUN CAPITAL BANCORP reported a net income of $23.174 million for the three months ended September 30, 2025, an increase from $22.422 million in the same period of 2024.

How did FIRSTSUN CAPITAL BANCORP's total assets change as of September 30, 2025?

As of September 30, 2025, FIRSTSUN CAPITAL BANCORP's total assets increased to $8.495 billion, up from $8.097 billion at December 31, 2024.

What is the status of FIRSTSUN CAPITAL BANCORP's proposed merger with First Foundation?

The proposed merger with First Foundation is a forward-looking statement and is subject to numerous assumptions, risks, and uncertainties, including the failure to obtain necessary stockholder and governmental approvals.

What was the provision for credit losses for FIRSTSUN CAPITAL BANCORP in Q3 2025?

The provision for credit losses for FIRSTSUN CAPITAL BANCORP was $10.100 million for the three months ended September 30, 2025, which is an increase from $5.000 million in the prior year period.

How much did FIRSTSUN CAPITAL BANCORP's total deposits grow by?

FIRSTSUN CAPITAL BANCORP's total deposits grew to $7.105 billion as of September 30, 2025, from $6.672 billion at December 31, 2024.

What are the key risks associated with FIRSTSUN CAPITAL BANCORP's operations?

Key risks include potential fluctuations in interest rates, changes in monetary and fiscal policies, the effects of events beyond control like inflation, and the inability to meet expectations regarding the timing and approval of the proposed First Foundation merger.

What was FIRSTSUN CAPITAL BANCORP's net interest income for the three months ended September 30, 2025?

FIRSTSUN CAPITAL BANCORP reported net interest income of $80.953 million for the three months ended September 30, 2025, an increase from $76.158 million in the same period of 2024.

How much income did FIRSTSUN CAPITAL BANCORP generate from mortgage banking services?

Income from mortgage banking services, net, for FIRSTSUN CAPITAL BANCORP was $12.641 million for the three months ended September 30, 2025, up from $8.838 million in the prior year period.

What is the significance of the increase in FIRSTSUN CAPITAL BANCORP's allowance for credit losses?

The allowance for credit losses decreased to $84.040 million as of September 30, 2025, from $88.221 million at December 31, 2024, despite an increased provision for credit losses in the quarter, suggesting a dynamic assessment of loan portfolio risk.

What should investors consider regarding FIRSTSUN CAPITAL BANCORP's stock?

Investors should consider the company's consistent growth in net income and assets, but also weigh the increased provision for credit losses and the inherent risks and potential benefits associated with the proposed merger with First Foundation.

Risk Factors

Industry Context

The banking industry is characterized by intense competition, regulatory oversight, and sensitivity to macroeconomic conditions, particularly interest rates. Banks are increasingly focusing on diversifying revenue streams beyond traditional net interest income, with mortgage banking and wealth management services becoming more prominent. Consolidation through mergers and acquisitions remains a significant trend as institutions seek scale and efficiency.

Regulatory Implications

The proposed merger with First Foundation is subject to stringent regulatory review, including approvals from banking authorities and potentially antitrust bodies. Compliance with evolving capital requirements, consumer protection laws, and anti-money laundering regulations are ongoing critical aspects for financial institutions like FirstSun Capital Bancorp.

What Investors Should Do

  1. Monitor Merger Progress
  2. Analyze Credit Quality Trends
  3. Evaluate Noninterest Income Drivers
  4. Assess Capital Adequacy

Key Dates

Glossary

Allowance for credit losses
An estimate of the amount of loans that may not be repaid by borrowers. It is a contra-asset account that reduces the carrying value of loans on the balance sheet. (The allowance impacts the reported net loan balance and is a key indicator of management's assessment of credit risk.)
Mortgage servicing rights (MSRs)
An asset representing the right to receive future cash flows from servicing a pool of mortgage loans. These are typically valued based on expected future servicing fees. (The increase in MSRs income is a significant driver of noninterest income, highlighting a key business segment.)
Noninterest income
Revenue generated by a financial institution from sources other than traditional interest income, such as fees, service charges, and trading gains. (The growth in noninterest income, particularly from mortgage banking, is a positive contributor to overall revenue diversification.)
Provision for credit losses
An expense recognized by a financial institution to cover potential loan losses. It is recorded on the income statement and affects net income. (The substantial increase in this provision signals a more conservative stance on credit risk by management.)
Securities available-for-sale
Investments in debt and equity securities that are not classified as held-to-maturity or trading securities. They are reported at fair value on the balance sheet, with unrealized gains and losses recorded in other comprehensive income. (These securities represent a portion of the company's investment portfolio and contribute to its asset base.)
Securities held-to-maturity
Investments in debt securities that the company has the intent and ability to hold until maturity. They are reported at amortized cost on the balance sheet. (These represent longer-term investments in the company's asset portfolio.)

Year-Over-Year Comparison

FirstSun Capital Bancorp has demonstrated solid year-over-year growth in key performance indicators. Net income for the nine months ended September 30, 2025, increased by 23.37% to $73.129 million, and total assets grew by 4.91% to $8.495 billion. Revenue from net interest income and noninterest income both saw increases, with mortgage banking services income showing particularly strong growth of 43.04%. However, a notable shift is the doubling of the provision for credit losses, indicating a more cautious outlook on credit quality compared to the prior year. The company is also navigating the significant risk associated with its proposed merger, which is pending regulatory and stockholder approvals.

Filing Stats: 4,493 words · 18 min read · ~15 pages · Grade level 20 · Accepted 2025-11-07 16:06:11

Key Financial Figures

Filing Documents

- Financial Information (Unaudited)

Part I - Financial Information (Unaudited) 5

Financial Statements

Item 1. Financial Statements 5

Management's Discussion and Analysis of Financial Condition and Results of Operations

Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations 51

Quantitative and Qualitative Disclosures About Market Risk

Item 3. Quantitative and Qualitative Disclosures About Market Risk 78

Controls and Procedures

Item 4. Controls and Procedures 79

- Other Information

Part II - Other Information 80

Legal Proceedings

Item 1. Legal Proceedings 80

Risk Factors

Item 1A. Risk Factors 80

Exhibits

Item 6. Exhibits 83

Signatures

Signatures 84 2 CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS This Quarterly Report on Form 10-Q contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements reflect our current views with respect to, among other things, statements relating to the Company's assets, business, cash flows, condition (financial or otherwise), credit quality, financial performance, liquidity, short and long-term performance goals, prospects, results of operations, strategic initiatives, the benefits, cost and synergies of completed acquisitions or dispositions, and the timing, benefits, costs and synergies of future acquisitions (including our expectations regarding the expected completion date of our proposed merger with First Foundation), disposition and other growth opportunities. They are not statements of historical or current fact nor are they assurances of future performance, and they generally can be identified by the use of forward-looking terminology, such as "believe," "expect," "anticipate," "intend," "target," "estimate," "continue," "positions," "plan," "predict," "project," "forecast," "guidance," "goal," "objective," "prospects," "possible" or "potential," by future conditional verbs such as "assume," "will," "would," "should," "could" or "may," or by variations of such words or by similar expressions. These forward-looking statements are subject to numerous assumptions, risks and uncertainties, which change over time, are difficult to predict and are generally beyond our control and should be viewed with caution. There are or will be important factors that could cause our actual results to differ materially from those indicated in these forward-looking statements, including, but not limited to, the following: our inability to meet expectations regarding the timing of the proposed First Foundation merger; the failure to obtain the necessary approvals by the stockholders of FirstS

- Financial Information

Part I - Financial Information

Financial Statements (Unaudited)

Item 1. Financial Statements (Unaudited) Index to Consolidated Financial Statements Page Consolidated Balance Sheets 6 Consolidated Statements of Income and Comprehensive Income 7 Consolidated Statements of Stockholders' Equity 8 Consolidated Statements of Cash Flows 10

Notes to Consolidated Financial Statements

Notes to Consolidated Financial Statements 12 Note 1 - Organization and Basis of Presentation 12 Note 2 - Securities 14 Note 3 - Loans 18 Note 4 - Mortgage Servicing Rights 28 Note 5 - Derivative Financial Instruments 29 Note 6 - Deposits 32 Note 7 - Debt 33 Note 8 - Earnings Per Share 34 Note 9 - Stockholders' Equity 35 Note 10 - Income Taxes 37 Note 11 - Regulatory Capital Matters 38 Note 12 - Fair Value Measurements 39 Note 13 - Segment Information 42 Note 14 - Commitments and Contingencies 47 Note 15 - Lease Commitments 49 Note 1 6 - Subsequent Events 50 5 FIRSTSUN CAPITAL BANCORP and Subsidiaries Consolidated Balance Sheets As of (Unaudited) (In thousands, except par and share amounts) September 30, 2025 December 31, 2024 Assets Cash and cash equivalents $ 659,899 $ 615,917 Securities available-for-sale, at fair value 476,114 469,076 Securities held-to-maturity, fair value of $ 29,705 and $ 29,563 , respectively 34,247 35,242 Loans held-for-sale, at fair value 85,250 61,825 Loans, net of allowance for credit losses of $ 84,040 and $ 88,221 , respectively 6,597,589 6,288,136 Mortgage servicing rights, at fair value 85,695 84,258 Premises and equipment, net 81,886 82,483 Other real estate owned and foreclosed assets, net 13,418 5,138 Bank-owned life insurance 82,722 81,115 Restricted equity securities 24,765 28,917 Goodwill 93,483 93,483 Core deposits and other intangible assets, net 5,650 7,434 Accrued interest receivable 34,796 32,102 Deferred tax assets, net 35,989 41,195 Prepaid expenses and other assets 183,934 171,066 Total assets $ 8,495,437 $ 8,097,387 Liabilities and Stockholders' Equity Liabilities: Deposits: Noninterest-bearing accounts $ 1,674,497 $ 1,541,158 Interest-bearing accounts 5,430,918 5,131,102 Total deposits 7,105,415 6,672,260 Securities sold under agreements to repurchase 9,824 14,699 Federal Home Loan Bank advances — 135,000 Subordinated debt, net 76

Notes to Consolidated Financial Statements

Notes to Consolidated Financial Statements (Unaudited) ($ in thousands, except share and per share amounts) NOTE 1 - Organization and Basis of Presentation Nature of Operations - The consolidated financial statements include the accounts of FirstSun Capital Bancorp ("FirstSun" or "Parent Company") and its wholly-owned subsidiaries, Sunflower Bank, N.A. (the "Bank" or "Sunflower Bank"), Sunflower Wealth Advisors, LLC ("SWA"), and FEIF Capital Partners, LLC, and have been prepared using U.S. generally accepted accounting principles ("U.S. GAAP") and prevailing practices in the banking industry. All significant intercompany balances and transactions have been eliminated. These entities are collectively referred to as "our", "us", "we", or "the Company". These consolidated financial statements in this Quarterly Report on Form 10-Q do not include all of the information and footnotes required by U.S. GAAP for a full year presentation and certain disclosures have been condensed or omitted in accordance with rules and regulations of the SEC. These interim financial statements are unaudited, and include, in our opinion, all adjustments necessary for a fair statement of the results for the periods indicated, which are not necessarily indicative of results which may be expected for the full year. These unaudited consolidated financial statements and notes should be read in conjunction with FirstSun's audited consolidated financial statements and footnotes thereto for the year ended December 31, 2024, included in our 2024 Annual Report . Use of Estimates - The preparation of consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions based on available information. These estimates and assumptions affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the re

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