FirstSun Capital Bancorp Q1 FY2026 earnings call

• Recently closed acquisition of First Foundation, teams working on integration. - First quarter performance: pleased with momentum, strong loan growth, net interest margin, and non-interest income mix. - First foundation acquisition: focus on de-risking acquired balance sheet, second quarter emphasis on post-acquisition balance sheet repositioning, third quarter on main application system conversions and unlocking cost synergies. - Integration activities: balance sheet repositioning with loan downsizing, securities portfolio downsizing, exiting higher cost funding, and work on system conversions.

For the quarter, adjusted net income was $23.7 million, adjusted diluted earnings per share was 84 cents, and adjusted ROA was 114. Loan growth was over 16% annualized, with loan balances increasing by approximately $267 million. Net interest margin ended at 4.25%, up 7 bps from the fourth quarter. Non-interest income was 24.7% of total revenue. Provision expense was $8.3 million, allowance for credit losses as a percentage of loans was 1.20%. On the balance sheet, loan growth was primarily in the C&I portfolio, deposit balances were down slightly with broker deposit balances down $60 million.

• 2026 full-year financial outlook updated to reflect acquisition. Loan balances expected to be relatively stable post-reposition and post-mark, then return to balanced growth mode. Net interest margin expected to be in the mid-380s range, with a drop in next couple quarters and elevation in fourth quarter to mid-390s. Non-interest income to total revenue expected to decline into lower 20s range. Adjusted efficiency ratio expected to be in mid to lower 60s for next couple quarters and drop to approx 60% in fourth quarter. Net charge offs to average loans expected to end the year in mid-20s basis points. - CET1 expected in the 1070s range post-repositioning, with capacity for nearer-term share repurchases.

Q: Woody Lay asked about the size of the balance sheet, impact on EPS, remixing and loan growth, and buybacks.

A: Discussed repositioning, loan growth in certain markets, deposit campaigns, and CET1 target.

Q: Michael Rose asked about loan growth remixing, credit, and ROA targets.

A: Remixing as multi-year, credit one-offs and focus on C&I, and updates on return targets.

Q: Matt Olney asked about repositioning efforts pricing and expense side.

A: Positive on SNCC and multifamily repositioning, and efficiency ratio projections.

Q: Matthew Clark asked about First Foundation deposits, margin cadence, net charge-off guidance.

A: Deposit mix, margin cadence, and charge-off guidance considerations.