FirstSun Capital Bancorp

What they do

FirstSun provides deposit, lending, treasury management, wealth management and online banking through Sunflower Bank, N.A., headquartered in Dallas, Texas, which operates as Sunflower Bank and First National 1870. Its product line includes commercial and industrial loans, commercial real estate loans, residential mortgage and other consumer loans, and commercial, consumer and private banking deposits. The company also offers wealth management and trust services through Sunflower Wealth Advisors and, following the First Foundation acquisition, First Foundation Advisors, an SEC-registered investment adviser. It operates in Texas, Kansas, Colorado, New Mexico, Arizona, California and Washington, with a mortgage lending platform with capabilities in 44 states.

Revenue drivers

• Net interest income (loans and deposits) — The core bank earns interest on commercial and industrial loans, commercial real estate loans, residential mortgage and other consumer loans, funded mainly by deposits; at December 31, 2025 the company reported total net loans held-for-investment of $6.6 billion and total deposits of $7.1 billion.
• Noninterest income — Treasury management, wealth management and trust products, private banking, personal trust and agency accounts, employee benefit and retirement related trust and agency accounts, investment management and advisory agency accounts, and foundation and endowment trust and agency accounts; noninterest income was 22.2% of total revenue in Q2 2026.
• Mortgage lending platform — Sunflower Bank operates a mortgage lending platform with capabilities in 44 states, contributing residential mortgage originations and related income.
• Acquired First Foundation operations — The April 1, 2026 First Foundation acquisition added $11.2 billion of total assets, including $6.0 billion of net loans, and $8.8 billion of deposits net of purchase accounting adjustments, expanding markets in Southern California and Texas and adding Florida, Nevada and Hawaii.

Recent performance

For the second quarter of 2026, FirstSun reported a net loss of $(22.9) million, or $(0.49) per diluted share, compared with net income of $26.4 million, or $0.93 per diluted share, in the second quarter of 2025. Adjusted net income was $21.0 million, or $0.45 per diluted share, versus $26.6 million, or $0.94 per diluted share, a year earlier. Results included $57.6 million of merger related expenses tied to the First Foundation acquisition, and management attributed the decline in results to two large loan charge-offs and merger and integration expenses. Net interest margin was 3.58% and noninterest income was 22.2% of total revenue. Return on average total assets was (0.54)% (adjusted 0.50%) and return on average stockholders' equity was (4.92)% (adjusted 4.52%).

Strategy

The company completed its merger with First Foundation on April 1, 2026 and is integrating the acquired operations, which added markets in Southern California, Texas, Florida, Nevada and Hawaii as well as wealth management capabilities through First Foundation Advisors. During the second quarter of 2026 it completed a balance sheet repositioning involving the sale or run-off of select First Foundation loans and securities and the reduction of higher-cost funding, liquidating $1.2 billion in cash, $1.4 billion in securities and $1.3 billion in loans to reduce $2.5 billion in deposits and $1.4 billion in borrowings. Management says the repositioning was designed to strengthen capital, enhance credit quality, improve liquidity and support a more diversified, relationship-focused business model. On July 24, 2026 the board authorized a share repurchase program of up to $150.0 million of common stock through June 30, 2027.

Risks

• Merger integration and cost savings — Combining FirstSun and First Foundation may be more difficult, costly or time-consuming than expected, and the anticipated benefits and cost savings may not be realized.
• Balance sheet repositioning execution — The planned repositioning depends on market conditions that could be less favorable than anticipated when the parties entered into the transaction.
• Credit quality — The company recorded two large loan charge-offs in the second quarter of 2026, contributing to the quarterly net loss.
• Interest rate and macroeconomic conditions — Changes in market interest rates, Federal Reserve monetary and fiscal policy, inflation, tariffs and trade policies could adversely affect funding costs, loan and securities portfolios and results of operations.

Outlook

Management describes the First Foundation acquisition as a transformational milestone that accelerated its growth strategy and expanded its footprint across what it calls dynamic markets. CEO Neal Arnold said the repositioning reduced concentration risk, liquidity risk and interest rate sensitivity and produced a stronger capital profile. He stated that while results declined on the two large loan charge-offs and merger and integration expenses, the company believes its core business remains strong and it is well positioned for future success. The company also authorized a $150.0 million share repurchase program through June 30, 2027.