Highlights

  • Third quarter net income was $38.4 million, or $0.82 per diluted share, against a $22.9 million net loss in the second quarter.
  • Net interest margin was 3.82%, up 24 basis points from the prior quarter, with loan yield at 6.33%.
  • FirstSun completed the First Foundation core system conversion in late September and repurchased 1,245,224 shares for $49.7 million.
  • The provision for credit losses was $4.4 million, against $40.4 million in the second quarter; net charge-offs were $3.3 million.

FirstSun Capital Bancorp (NASDAQ: FSUN) shares were trading at USD 40.63 on October 27, 2026, up 2.09%, with a relative volume at time of 13.45. The financial holding company closed its First Foundation acquisition on April 1, finished the core system conversion in late September, and published third quarter 2026 results and a fourth quarter outlook on October 26.

FirstSun is incorporated in Delaware and lists its principal executive offices in Greenwood Village, Colorado. Its subsidiaries include Sunflower Bank, N.A. and First Foundation Advisors, which offer personal, business and wealth management services. The company operates 99 full service branches across ten states and has mortgage capabilities in 44 states. It reported total consolidated assets of $15.3 billion and 1,587 full-time employees as of September 30, 2026, and its fiscal year ends December 31.

Earnings and Margin

For the quarter ended September 30, 2026, FirstSun reported net income of $38.4 million, or $0.82 per diluted share. The second quarter of 2026 showed a net loss of $22.9 million, or $0.49 per diluted share. Adjusted net income, a non-GAAP measure, was $48.2 million, or $1.03 per diluted share. Over nine months, net income was $37.1 million, or $0.91 per diluted share, compared with $73,129 thousand, or $2.59, in the same period of 2025.

Net interest income totaled $140.3 million, which the company stated was $2.9 million lower than the second quarter. The net interest margin increased 24 basis points to 3.82%. The company attributed the rise in loan yield, to 6.33%, to second quarter sales of multifamily and public finance loans acquired from First Foundation, along with the rate environment.

Noninterest income was $39.4 million, or 21.9% of total revenue. Noninterest expense was $126.6 million, with merger related expenses down $44.3 million from the prior quarter. The efficiency ratio was 70.43%, compared with 93.25%, and the adjusted efficiency ratio, a non-GAAP measure, was 63.06%, compared with 61.99%.

Balance Sheet, Credit and Capital

Loans stood at $11.5 billion on September 30, against $11.6 billion on June 30, which the company stated as an annualized decline of 3.8%. Deposits were $13.0 billion, against $13.4 billion, or a 13.2% annualized decline. On the call, the chief financial officer said competition for deposits has intensified and has brought pricing pressure.

On credit, the provision was $4.4 million, mainly specific reserves on two commercial real estate loans. Net charge-offs were $3.3 million, or 0.11% of average loans annualized, compared with $42.4 million, or 1.45%, in the second quarter. The allowance for credit losses was 1.52% of loans. Nonperforming assets were 1.46% of total assets, compared with 1.32% at June 30. Substandard loans decreased by $39.9 million and special mention loans by $23.8 million, while doubtful loans increased by $17.4 million on two commercial real estate loans.

The common equity tier 1 ratio was 11.99%. Tangible book value per share, a non-GAAP measure, was $35.60. FirstSun's presentation states that $100 million remains available under its repurchase program through the second quarter of 2027.

Integration Progress

Management said the third quarter operating synergy run rate was about 70% of the original $68.8 million cost-savings target. It expects to capture most of the remainder in the fourth quarter, with additional savings in the first quarter of 2027.

Fourth Quarter 2026 Outlook

For the fourth quarter, FirstSun expects mid single digit growth in loans and in deposits excluding brokered balances, a net interest margin in the mid 3.80s, and an efficiency ratio in the low 60s. It expects net charge-offs to average loans in the low 20s range in basis points. The outlook assumes one 25 basis point Federal Reserve rate increase by year end. For 2027, the company expects mid single digit loan and deposit growth and a net interest margin in the high 3.80s in the first quarter. These are management expectations and are subject to change.