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FirstSun Capital Bancorp Q1 2026 Net Income Drops to $21.6M

FirstSun Capital Bancorp reported first-quarter 2026 net income of $21.6 million, down from $23.6 million a year earlier and below the $24.8 million it earned in the fourth quarter of 2025. Diluted earnings per share fell to $0.76 from $0.83 in the first quarter of 2025 and $0.88 in the prior quarter.

The Denver-based bank said adjusted net income was $23.7 million, or $0.84 per diluted share, versus $26.9 million, or $0.95 per share, in the fourth quarter.

Net interest income slipped $0.7 million sequentially to $82.8 million, while net interest margin widened 7 basis points to 4.25%. Average loans rose $32.1 million from the prior quarter, and loans at March 31 reached $6.9 billion, up $266.8 million from Dec. 31, an annualized growth rate of 16.2%.

Noninterest income increased to $27.2 million from $26.8 million in the previous quarter. Mortgage banking income added $2.2 million, helped by an 11.4% increase in total originations, while other noninterest income declined $1.8 million.

Noninterest expense climbed to $75.3 million from $72.0 million in the prior quarter. Salary and employee benefits rose $3.8 million, merger-related expenses increased $0.5 million, and the efficiency ratio worsened to 68.52% from 65.37%.

Credit costs moved higher. The provision for credit losses rose to $8.3 million from $6.2 million, and net charge-offs jumped to $10.6 million from $5.0 million. The annualized net charge-off ratio increased to 0.63% from 0.30%. The allowance for credit losses fell to 1.20% of loans from 1.27%, while nonperforming assets edged down to 0.82% of total assets from 0.85%.

Deposits were essentially flat at $7.1 billion at quarter-end, but average deposits declined $45.8 million sequentially to $7.0 billion. Certificates of deposit fell $79.9 million, including a $58.6 million drop in brokered deposits, while demand and NOW accounts rose $86.1 million. Noninterest-bearing deposits made up 22.6% of total deposits, and the loan-to-deposit ratio was 97.9%.

On capital, book value per share increased $0.72 from year-end to $42.08, and tangible book value per share rose $0.74 to $38.57. The common equity tier 1 ratio stood at 13.77%, total risk-based capital at 15.29%, and tier 1 leverage at 13.06%.

FirstSun completed its merger with First Foundation on April 1, 2026, after quarter-end, and said it incurred $2.7 million in merger-related expenses during the quarter. As a result of these announcements, the company's shares have moved -0.53% on the market, and are now trading at a price of $38.23. For more information, read the company's full 8-K submission here.

The above analysis is intended for educational purposes only and was performed on the basis of publicly available data. It is not to be construed as a recommendation to buy or sell any security. Any buy, sell, or other recommendations mentioned in the article are direct quotations of consensus recommendations from the analysts covering the stock, and do not represent the opinions of Market Inference or its writers. Past performance, accounting data, and inferences about market position and corporate valuation are not reliable indicators of future price movements. Market Inference does not provide financial advice. Investors should conduct their own review and analysis of any company of interest before making an investment decision.

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