Key Highlights

  • Net income was USD 38.4 million, or USD 0.82 per diluted share, against a net loss of USD 22.9 million.
  • Adjusted net income was USD 48.2 million, or USD 1.03 per diluted share, against USD 23.4 million a year earlier.
  • Net interest margin rose 24 basis points to 3.82%, while net interest income was USD 140.3 million.
  • Repurchases of 1,245,224 shares cost USD 49.7 million, and the First Foundation core system conversion finished in late September.

Profit Returns After Merger Quarter

FirstSun Capital Bancorp (NASDAQ:FSUN), the Denver-based parent of Sunflower Bank, reported third-quarter net income of USD 38.4 million on Monday, Oct. 26, against a net loss of USD 22.9 million in the second quarter, when it absorbed First Foundation. Earnings per diluted share were USD 0.82, matching the third quarter of 2025, when net income was USD 23.2 million. Adjusted net income was USD 48.2 million, or USD 1.03 per share, against USD 21.0 million and USD 0.45 in the prior quarter and USD 23.4 million and USD 0.83 a year earlier.

Return on average assets was 0.98%, or 1.23% adjusted, and return on average equity was 8.23%, or 10.33% adjusted. Chief Executive Neal Arnold credited an improved margin, a diversified revenue mix and operating synergies from the First Foundation deal.

Margin and Balance Sheet Repositioning

Net interest income was USD 140.3 million, down USD 2.9 million, while net interest margin rose 24 basis points to 3.82%. Average loans fell USD 1.0 billion after the sale of USD 1.3 billion of loans late in the second quarter, and the loan yield rose 17 basis points to 6.33% as lower-yielding multifamily and public finance loans left the book. The cost of interest-bearing deposits fell two basis points to 2.75% as higher-cost certificates of deposit acquired from First Foundation ran off.

Loans were USD 11.5 billion at quarter end and deposits USD 13.0 billion, down USD 0.4 billion. Noninterest-bearing deposits were 20.6% of the total, and the loan-to-deposit ratio was 88.3%. Estimated uninsured deposits were 33.2% of deposits, or 25.8% excluding collateralized balances.

Noninterest income was USD 39.4 million, down USD 1.6 million, with mortgage banking income down USD 3.2 million, and represented 21.9% of revenue. Noninterest expense fell USD 45.2 million to USD 126.6 million as merger-related expenses dropped USD 44.3 million. The efficiency ratio was 70.43% against 93.25%, or 63.06% adjusted against 61.99%.

Credit and Capital

The provision for credit losses was USD 4.4 million, mainly specific reserves on two commercial real estate loans, against USD 40.4 million in the second quarter. Net charge-offs were USD 3.3 million, or 0.11% of average loans annualized, against USD 42.4 million, or 1.45%. The allowance was 1.52% of loans, and nonperforming assets rose to 1.46% of total assets from 1.32%. The effective tax rate was 21.2%.

The common equity Tier 1 ratio was 11.99%, the total risk-based ratio 14.29% and the Tier 1 leverage ratio 10.33%. Book value per share rose USD 0.46 to USD 39.75, and tangible book value per share rose USD 0.44 to USD 35.60.

Bank Markers to Follow

Tracking points include nonperforming assets against 1.46% of total assets, loan balances after the annualized 3.8% decline, and the adjusted efficiency ratio relative to 63.06%.

Further items are net interest margin against 3.82%, share repurchase pace relative to the USD 49.7 million spent, and deposit trends after the repositioning.