FirstSun Capital Bancorp Reports Fourth Quarter and Full Year 2025 Results

Fourth Quarter 2025 Highlights:

• Net income of $24.8 million, $0.88 per diluted share (adjusted, $26.9 million, $0.95 per diluted share, see the “Non-GAAP Financial Measures and Reconciliations” below)
• Net interest margin of 4.18%
• Return on average total assets of 1.17% (adjusted, 1.27%, see the “Non-GAAP Financial Measures and Reconciliations” below)
• Return on average stockholders’ equity of 8.58% (adjusted, 9.31%, see the “Non-GAAP Financial Measures and Reconciliations” below)
• Average loan growth of 8.5%, annualized
• 24.3% noninterest income to total revenue¹

DENVER–(BUSINESS WIRE)–FirstSun Capital Bancorp (“FirstSun”) (NASDAQ: FSUN) reported net income of $24.8 million for the fourth quarter of 2025 compared to net income of $16.4 million for the fourth quarter of 2024. Earnings per diluted share were $0.88 for the fourth quarter of 2025 compared to $0.58 for the fourth quarter of 2024. Adjusted net income, a non-GAAP financial measure, was $26.9 million or $0.95 per diluted share for the fourth quarter of 2025 compared to $24.3 million or $0.86 per diluted share for the fourth quarter of 2024.

Neal Arnold, FirstSun’s Chief Executive Officer and President, commented, “We are very pleased with our strong operating results in the fourth quarter. Among the highlights were our growth in net interest margin to a strong 4.18%, average loan growth of 8.5%, annualized and revenue growth driving our earnings growth. Our strategic focus on our C&I, consumer and service fee businesses has enabled us to continue to responsibly grow our franchise and deliver strong earnings once again this year. While we acknowledge the potential influence of macroeconomic and geopolitical risks, we look forward to the franchise opportunities ahead in 2026 and believe our business model and well diversified business mix will position us for continued success.

“We are also encouraged with the progress we are making with the First Foundation team on operational integration planning and balance sheet optimization work. Finally, I want to thank all of our hard-working employees for their continued focus on creating a best-in-class bank while delivering value added solutions to all our customers throughout our footprint.”

Fourth Quarter 2025 Results

Net income totaled $24.8 million, or $0.88 per diluted share, for the fourth quarter of 2025, compared to $23.2 million, or $0.82 per diluted share, for the prior quarter. Adjusted net income, a non-GAAP financial measure, totaled $26.9 million, or $0.95 per diluted share, for the fourth quarter of 2025, compared to $23.4 million, or $0.83 per diluted share, for the prior quarter.

The return on average total assets was 1.17% for the fourth quarter of 2025, compared to 1.09% for the prior quarter, and the return on average stockholders’ equity was 8.58% for the fourth quarter of 2025, compared to 8.22% for the prior quarter. Adjusted return on average total assets and adjusted return on average stockholders’ equity, each a non-GAAP financial measure, were 1.27% and 9.31% respectively for the fourth quarter of 2025 compared to 1.10% and 8.31% respectively for the prior quarter.

Net Interest Income and Net Interest Margin

Net interest income totaled $83.5 million for the fourth quarter of 2025, an increase of $2.5 million compared to the prior quarter. Our net interest margin increased 11 basis points to 4.18% compared to the prior quarter.

Average loans, including loans held-for-sale, increased by $158.2 million in the fourth quarter of 2025, compared to the prior quarter. Loan yield decreased by 12 basis points to 6.37% in the fourth quarter of 2025, compared to the prior quarter, primarily due to the declining interest rate environment and its impact on variable rate loans in the loan portfolio. Average interest-bearing cash and other assets decreased by $131.2 million in the fourth quarter of 2025, compared to the prior quarter. Interest-bearing cash and other assets yield decreased by 57 basis points to 3.68% in the fourth quarter of 2025, compared to the prior quarter, primarily due to the declining interest rate environment.

Average interest-bearing deposits decreased $60.6 million in the fourth quarter of 2025, compared to the prior quarter. Total cost of interest-bearing deposits decreased by 21 basis points to 2.60% in the fourth quarter of 2025, compared to the prior quarter, primarily due to rate decreases for certificates of deposit and money market deposits amidst the declining interest rate environment and a decrease in certificates of deposit balances. Average other long-term borrowings decreased $39.5 million in the fourth quarter of 2025, compared to the prior quarter. Cost of other long-term borrowings decreased 259 basis points to 5.82% in the fourth quarter of 2025, compared to the prior quarter, primarily due to the redemption of $40.0 million of subordinated notes.

Asset Quality and Provision for Credit Losses

The provision for credit losses totaled $6.2 million for the fourth quarter of 2025 primarily due to impacts from net portfolio downgrades.

Net charge-offs for the fourth quarter of 2025 were $5.0 million resulting in an annualized ratio of net charge-offs to average loans of 0.30%, compared to net charge-offs of $9.1 million, or an annualized ratio of net-charge offs to average loans of 0.55% for the prior quarter. Net charge-offs for the fourth quarter of 2025 were elevated primarily due to a write-down related to a specific customer relationship in our C&I loan portfolio.

The allowance for credit losses as a percentage of loans was 1.27% at December 31, 2025, an increase of one basis point from the prior quarter. The ratio of nonperforming assets to total assets was 0.85% at December 31, 2025, compared to 0.98% at September 30, 2025.

Noninterest Income

Noninterest income totaled $26.7 million for the fourth quarter of 2025, an increase of $0.4 million from the prior quarter. Income from mortgage banking services decreased $0.5 million for the fourth quarter of 2025, from the prior quarter, primarily due to a decrease in net MSR capitalization resulting from higher balance runoff in the servicing portfolio. Other noninterest income increased $0.8 million for the fourth quarter of 2025, from the prior quarter, primarily due to an increase in loan syndication fees and swap fee income, partially offset by a decrease in the fair value of investments related to our deferred compensation plan.

Noninterest income as a percentage of total revenue¹ was 24.3%, a decrease of 0.2% from the prior quarter.

Noninterest Expense

Noninterest expense totaled $72.0 million for the fourth quarter of 2025, an increase of $3.1 million from the prior quarter. Salary and employee benefits decreased $1.3 million in the fourth quarter of 2025 from the prior quarter, primarily due to a decrease in the fair value of investments related to our deferred compensation plan and a reduction in medical insurance costs. Other noninterest expenses increased $2.4 million in the fourth quarter of 2025 from the prior quarter, primarily due to the acceleration of remaining deferred expenses related to the $40.0 million subordinated notes redemption and maintenance expenses incurred related to OREO properties. Merger related expenses increased $2.0 million in the fourth quarter of 2025 from the prior quarter.

The efficiency ratio for the fourth quarter of 2025 was 65.37% compared to 64.22% for the prior quarter. The adjusted efficiency ratio, a non-GAAP financial measure, for the fourth quarter of 2025 was 63.36% compared to 64.00% for the prior quarter.

Tax Rate

The effective tax rate was 22.4% for the fourth quarter of 2025, compared to 18.1% for the prior quarter.

Loans

Loans were $6.7 billion at December 31, 2025 and September 30, 2025, decreasing $8.4 million in the fourth quarter of 2025, or 0.5% on an annualized basis.

Deposits

Deposits were $7.1 billion at December 31, 2025 and September 30, 2025, an increase of $1.9 million in the fourth quarter of 2025, or 0.1% on an annualized basis, primarily due to an increase of $100.0 million in money market accounts, partially offset by decreases of $61.8 million in certificates of deposit and $23.1 million in noninterest-bearing deposit accounts. Average deposits were $7.1 billion for fourth quarter of 2025 and for the prior quarter, decreasing $4.8 million or 0.3% on an annualized basis.

Noninterest-bearing deposit accounts represented 23.2% of total deposits at December 31, 2025 and the loan to deposit ratio was 93.9% at December 31, 2025.

The ratio of total uninsured deposits to total deposits was estimated to be 36.6% at December 31, 2025. The ratio of total uninsured and uncollateralized deposits to total deposits was estimated to be 29.0% at December 31, 2025.²

Capital

Capital ratios remain strong and above “well-capitalized” thresholds. As of December 31, 2025, our common equity tier 1 risk-based capital ratio was 14.12%, total risk-based capital ratio was 15.73% and tier 1 leverage ratio was 12.75%. Book value per share was $41.36 at December 31, 2025, an increase of $0.88 from September 30, 2025. Tangible book value per share, a non-GAAP financial measure, was $37.83 at December 31, 2025, an increase of $0.91 from September 30, 2025.

Full Year 2025 Results

Full Year Highlights:

• Net income of $97.9 million, $3.47 per diluted share (adjusted, $100.5 million, $3.56 per diluted share, see the “Non-GAAP Financial Measures and Reconciliations” below)
• Net interest margin of 4.10%
• Return on average total assets of 1.18% (adjusted, 1.21%, see the “Non-GAAP Financial Measures and Reconciliations” below)
• Return on average stockholders’ equity of 8.88% (adjusted, 9.11%, see the “Non-GAAP Financial Measures and Reconciliations” below)
• Loan growth of 4.7%
• Average deposit growth of 6.6%
• 24.3% noninterest income to total revenue¹

Net income totaled $97.9 million, or $3.47 per diluted share, in 2025, compared to $75.6 million, or $2.69 per diluted share, in 2024. Adjusted net income, a non-GAAP financial measure, was $100.5 million, or $3.56 per diluted share, in 2025 compared to $87.7 million, or $3.13 per diluted share, in 2024.

The return on average total assets was 1.18% in 2025, compared to 0.96% in 2024, and the return on average stockholders’ equity was 8.88% in 2025, compared to 7.56% in 2024. Adjusted return on average total assets and adjusted return on average stockholders’ equity, each a non-GAAP financial measure, were 1.21% and 9.11% respectively in 2025 compared to 1.12% and 8.77% respectively in 2024.

Net Interest Income and Net Interest Margin

Net interest income totaled $317.4 million in 2025, an increase of $20.5 million compared to 2024. Our net interest margin increased four basis points to 4.10% compared to 2024.

Average loans, including loans held-for-sale, increased by $224.1 million in 2025, compared to 2024. Loan yield decreased by 17 basis points to 6.41% in 2025, compared to 2024, primarily due to the declining interest rate environment and its impact on variable rate loans in the loan portfolio. Average interest-bearing cash and other assets increased by $218.6 million in 2025, compared to 2024. Interest-bearing cash and other assets yield decreased by 88 basis points to 4.14% in 2025, compared to 2024, primarily due to the declining interest rate environment.

Average deposits increased $357.6 million in 2025, compared to 2024. Total cost of interest-bearing deposits decreased by 30 basis points to 2.73% in 2025, compared to 2024, primarily due to a decrease in balances and rates for certificates of deposit amidst the declining interest rate environment, partially offset by an increase in promotional rate money market deposit balances. Average FHLB borrowings decreased $117.0 million in 2025, compared to 2024. The cost of FHLB borrowings decreased by 87 basis points to 4.61% in 2025, compared to 2024.

Asset Quality and Provision for Credit Losses

The provision for credit losses totaled $24.6 million in 2025, a decrease of $3.0 million compared to 2024. The provision for credit losses in 2025 was primarily due to a combination of deterioration of two customer relationships in our commercial and industrial (C&I) portfolio, impacts from net portfolio downgrades, and impacts from growth in loan portfolio balances.

Net charge-offs in 2025 were $28.3 million, or a ratio of net charge-offs to average loans of 0.43%, compared to net charge-offs of $20.4 million, or a ratio of net charge-offs to average loans of 0.32%, in 2024. Net charge-offs in 2025 were elevated primarily due to write-downs of two customer relationships in our C&I loan portfolio.

The allowance for credit losses as a percentage of loans was 1.27% at December 31, 2025, compared to 1.38% at December 31, 2024. The ratio of nonperforming assets to total assets was 0.85% at December 31, 2025, compared to 0.92% at December 31, 2024.

Noninterest Income

Noninterest income totaled $101.9 million during 2025, an increase of $12.1 million from 2024. Income from mortgage banking services increased $8.1 million in 2025 compared to 2024, primarily due to an increase in gain on sales driven by higher origination volume and margins and an increase in mortgage servicing revenue driven by higher servicing portfolio balances. Treasury management service fees increased $2.6 million in 2025 compared to 2024, primarily due to growth in services provided to our business customers. Other noninterest income increased $2.8 million in 2025 compared to 2024, primarily due to an increase in loan syndication fees and swap fee income.

Noninterest income as a percentage of total revenue¹ totaled 24.3% in 2025, compared to 23.2% in 2024.

Noninterest Expense

Noninterest expense totaled $271.8 million in 2025, an increase of $7.7 million from 2024. Salaries and employee benefits increased $16.8 million in 2025 compared to 2024, primarily due to an increase in headcount of C&I bankers and support personnel, higher levels of variable compensation, including those associated with an increase in mortgage loan originations, and an increase in medical insurance costs. Merger related expenses decreased $10.4 million in 2025 compared to 2024.

The efficiency ratio for 2025 was 64.82% compared to 68.28% in 2024. The adjusted efficiency ratio, a non-GAAP financial measure, in 2025 was 64.17% compared to 64.13% in 2024.

Tax Rate

The effective tax rate was 20.3% in 2025, compared to 20.5% in 2024.

Loans

Loans were $6.7 billion at December 31, 2025 compared to $6.4 billion at December 31, 2024, an increase of $0.3 billion or 4.7%, primarily due to growth of $0.3 billion in C&I loans.

Deposits

Deposits were $7.1 billion at December 31, 2025 and $6.7 billion at December 31, 2024, an increase of $0.4 billion or 6.5% in 2025, primarily due to increases of $0.1 billion in noninterest-bearing deposit accounts, $0.1 billion in interest-bearing demand and NOW accounts, and $0.5 billion in money market accounts, partially offset by a decrease of $0.3 billion in certificates of deposit. Average deposits were $6.9 billion for the year ending December 31, 2025, compared to $6.5 billion for the prior year, an increase of $430.4 million or 6.6%.

Capital

Capital ratios remain strong and above “well-capitalized” thresholds. As of December 31, 2025, our common equity tier 1 risk-based capital ratio was 14.12%, total risk-based capital ratio was 15.73% and tier 1 leverage ratio was 12.75%. Book value per share was $41.36 at December 31, 2025, an increase of $3.78 from December 31, 2024. Tangible book value per share, a non-GAAP financial measure, was $37.83 at December 31, 2025, an increase of $3.89 from December 31, 2024.

Non-GAAP Financial Measures

This press release (including the tables within the “Non-GAAP Financial Measures and Reconciliations” section) 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 stockholders’ equity to tangible assets;
• Tangible stockholders’ equity to tangible assets, reflecting net unrealized losses on HTM securities, net of tax;
• Tangible book value per share;
• Adjusted net income;
• Adjusted diluted earnings per share;
• Adjusted return on average total assets;
• Adjusted return on average stockholders’ equity;
• Return on average tangible stockholders’ equity;
• Adjusted return on average tangible stockholders’ equity;
• Adjusted total noninterest expense;
• Adjusted efficiency ratio; and
• Fully tax equivalent (“FTE”) net interest income and net interest margin.

The tables within the “Non-GAAP Financial Measures and Reconciliations” section 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 (NASDAQ: FSUN), headquartered in Denver, Colorado, is the financial holding company for Sunflower Bank, N.A., which operates as Sunflower Bank and First National 1870. Sunflower Bank provides a full range of relationship-focused services to meet personal, business and wealth management financial objectives, with depository branches in seven states and mortgage capabilities in 44 states. FirstSun had total consolidated assets of $8.5 billion as of December 31, 2025.

First National 1870 is a division of Sunflower Bank, N.A. To learn more, visit ir.firstsuncb.com or SunflowerBank.com

Investor Earnings Conference Call

FirstSun will host a conference call on Tuesday, January 27, 2026 at 11:00 a.m. (EST) to discuss its fourth quarter and full year 2025 financial results.

Participants may join by phone by dialing (833) 470-1428 for toll-free within the US and (404) 975-4839 for all other locations. The conference Access Code is 586052. The numbers for international participants are available here: https://www.netroadshow.com/events/global-numbers?confId=48643.

An audio replay of the live call, and the accompanying presentation slides, is expected to be available following the live event on the Events & Presentations page of FirstSun’s website at https://ir.firstsuncb.com/overview/default.aspx.

Day-Count Convention

Annualized ratios are presented utilizing the Actual/Actual day-count convention. Annualized ratios have been recalculated to conform to the current presentation for periods prior to March 31, 2025.

CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS

This press release contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. All statements other than statements of historical fact are forward-looking statements. Examples of forward-looking statements include, but are not limited to, statements regarding our future franchise opportunities and continued success in 2026. These statements reflect management’s current expectations and are not guarantees of future performance. Words such as “focus,” “may,” “will,” “believe,” “anticipate,” “expect,” “intend,” “opportunity,” “continue,” “should,” and “could” and variations of such words and similar expressions are intended to identify such forward-looking statements. Forward-looking statements are subject to risks, uncertainties and assumptions that are difficult to predict with regard to timing, extent, likelihood and degree of occurrence, which could cause actual results to differ materially from anticipated results. Such risks, uncertainties and assumptions, include, among others, the following: changes in interest rates (including anticipated Federal Reserve rate cuts that might not occur) and their related impact on macroeconomic conditions, customer behavior, our funding costs and our loan and securities portfolios; the quality or composition of our loan or investment portfolios and changes therein; failure to maintain our mortgage production flow to secondary markets; the sufficiency of liquidity and changes in our capital position; the inability of our infrastructure initiatives to reduce expenses; increased deposit volatility; potential regulatory developments; U.S. and global trade policies and tensions, including change in, or the imposition of, tariffs and/or trade barriers and the economic impacts, volatility and uncertainty resulting therefrom, and geopolitical instability; the possibility that our previously announced merger with First Foundation Inc. (“First Foundation”) does not close when expected or at all because required regulatory, stockholder or other approvals and conditions to closing are not received or satisfied on a timely basis or at all; the possibility that the proposed First Foundation merger, including the re-positioning strategy, will not be completed as planned, or achieve the anticipated benefits; the diversion of management’s attention from ongoing business operations and opportunities due to the proposed First Foundation merger; the occurrence of any event, change or other circumstances that could give rise to the termination of the First Foundation merger agreement; the possibility that the anticipated benefits of the proposed First Foundation merger, including anticipated cost savings and synergies, are not realized when expected or at all, including because of the impact of, or problems arising from, the integration of the companies or as a result of the strength of the economy, competitive factors in the areas where we do business, or because of other unexpected factors or events; and other general competitive, economic, business, market and political conditions.

We caution readers that the foregoing list of factors is not exclusive, is not necessarily in order of importance and readers should not place undue reliance on any forward-looking statements. Additional information concerning additional factors that could materially affect the forward-looking statements in this press release can be found in the cautionary language included under the headings “Cautionary Note Regarding Forward-Looking Statements” and “Risk Factors” in the Company’s Annual Report on Form 10-K for the year ended December 31, 2024 and other documents subsequently filed by the Company with the SEC, including its Quarterly Reports on Form 10-Q. Further, any forward-looking statement speaks only as of the date on which it is made and we do not intend to and disclaim any obligation to update or revise any forward-looking statement to reflect events or circumstances after the date on which the statement is made or to reflect the occurrence of unanticipated events, except as required by law.

Contacts

Investor Contact:
Ed Jacques

Director of Investor Relations & Business Development, FirstSun

[email protected]

Media Contact:
Jeanne Lipson

Director of Marketing, Sunflower Bank

[email protected]

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