FirstSun Capital Bancorp — Third Quarter 2026 Earnings Summary

Financial Performance:

• Net income totaled $38.4 million ($0.82 per diluted share) in Q3 2026, compared to a net loss of $22.9 million ($0.49 per diluted share) in Q2 2026 and net income of $23.2 million ($0.82 per diluted share) in Q3 2025.
• Adjusted net income was $48.2 million ($1.03 per diluted share) in Q3 2026, compared to $21.0 million ($0.45 per diluted share) in Q2 2026 and $23.4 million ($0.83 per diluted share) in Q3 2025.
• Net interest income was $140.3 million, a decrease of $2.9 million from the prior quarter.
• Net interest margin increased 24 basis points to 3.82% in Q3 2026, compared to 3.58% in Q2 2026.
• Return on average total assets was 0.98% in Q3 2026, compared to (0.54)% in Q2 2026; adjusted ROAA was 1.23%.
• Return on average stockholders' equity was 8.23% in Q3 2026, compared to (4.92)% in Q2 2026; adjusted ROAE was 10.33%.
• Provision for credit losses was $4.4 million in Q3 2026, down from $40.4 million in Q2 2026.
• Net charge-offs were $3.3 million (0.11% of average loans annualized) in Q3 2026, compared to $42.4 million (1.45%) in Q2 2026.
• Noninterest expense decreased $45.2 million to $126.6 million in Q3 2026 from $171.7 million in Q2 2026.
• The efficiency ratio was 70.43% in Q3 2026, compared to 93.25% in Q2 2026; the adjusted efficiency ratio was 63.06%.
• Total assets were $15.3 billion as of September 30, 2026.
• Loans held-for-investment were $11.5 billion as of September 30, 2026.
• Total deposits were $13.0 billion as of September 30, 2026.
• Book value per share was $39.75 as of September 30, 2026; tangible book value per share was $35.60.

Guidance and Future Outlook:

• Management stated that relationship-based business models, presence in strong economic growth markets, and a disciplined risk profile position the company for continued success.
• The company remains focused on continuing to grow its franchise and delivering strong financial results and sustainable long-term value for stockholders.
• No specific forward-looking numerical guidance for future quarters was provided in the release.

Business Segments and Product Lines:

• Noninterest income totaled $39.4 million, a decrease of $1.6 million from the prior quarter.
• Income from mortgage banking services decreased $3.2 million due to lower loan originations sold and changes in MSR fair value.
• Other noninterest income increased $1.0 million, driven by higher swap and loan syndication revenue.
• Merger-related expenses decreased $44.3 million to $13.2 million in Q3 2026 from $57.6 million in Q2 2026.
• Salary and employee benefits decreased $5.4 million due to merger-related workforce reductions.
• The core system conversion of First Foundation was successfully completed in late September 2026.
• Loan portfolio decreased to $11.5 billion, primarily due to paydowns in commercial real estate loans (multifamily, non-owner occupied, owner-occupied) and lower public finance balances, partially offset by increased C&I loans.
• Deposits decreased $0.4 billion to $13.0 billion, primarily due to decreases in money market, savings, and certificates of deposit, partially offset by increases in demand and NOW deposits.

Market and Competitive Landscape:

• The company operates with depository branches in ten states and mortgage capabilities in 44 states.
• Balance sheet repositioning strategies included the sale of $1.3 billion in loans and $1.4 billion in securities in the second quarter of 2026.
• The loan yield increased to 6.33% in Q3 2026, primarily due to the sale of lower-yielding multifamily and public finance loans acquired from First Foundation and the rising interest rate environment.
• The investment securities yield decreased to 4.52% in Q3 2026, reflecting lower purchase accounting discount accretion.

Risks and Challenges:

• Forward-looking statements highlight risks including changes in interest rates, macroeconomic conditions, customer behavior, and funding costs.
• Risks include the quality or composition of loan and investment portfolios, failure to maintain mortgage production flow, and liquidity or capital position changes.
• Potential risks include the inability of infrastructure initiatives to reduce expenses, increased deposit volatility, and regulatory developments.
• Risks related to the First Foundation merger include the possibility that anticipated cost savings and strategic gains are not realized, integration taking longer or costing more than anticipated, and diversion of management attention.
• Geopolitical conflicts, trade policies, tariffs, and cybersecurity threats are cited as potential adverse factors.

Management Commentary and Tone:

• Neal Arnold, CEO and President, noted that Q3 results reflect continued progress on strategic priorities, including improved net interest margin, a strong diversified revenue profile, and benefits from operating synergies from the First Foundation acquisition.
• Management expressed pride in the team for completing the core system conversion while continuing to serve clients.
• The tone regarding the merger integration is positive, citing the successful completion of a major milestone.

Other Key Points:

• FirstSun repurchased 1,245,224 common shares for $49.7 million under its share repurchase program during the quarter.
• The effective tax rate was 21.2% in Q3 2026, compared to 18.3% in Q2 2026.
• The allowance for credit losses as a percentage of loans outstanding was 1.52% at September 30, 2026.
• The ratio of nonperforming assets to total assets was 1.46% at September 30, 2026.
• Common equity tier 1 risk-based capital ratio was 11.99%, total risk-based capital ratio was 14.29%, and tier 1 leverage ratio was 10.33% as of September 30, 2026.
• The ratio of total uninsured deposits to total deposits was 33.2% at September 30, 2026.
• Deposit classification practices were revised in Q3 2026 to discontinue product reclassification for reserve requirements and to convert certain money market accounts to interest-bearing demand accounts.