fcb-20220728

FIRSTSUN CAPITAL BANCORP REPORTS SECOND QUARTER 2022 RESULTS

Second Quarter 2022 Highlights:

•Completed previously announced merger with Pioneer Bancshares, Inc. (“Pioneer”), acquiring loans of $0.8 billion, total assets of $1.5 billion, and total deposits of $1.2 billion net of purchase accounting adjustments

•Net income of $0.4 million, $0.02 per diluted share (excluding merger costs, $17.2 million, $0.68 per diluted share, see the “Non-GAAP Financial Measures and Reconciliations” below)

•Return on average assets of 0.02% (excluding merger costs, 0.96%, see the “Non-GAAP Financial Measures and Reconciliations” below)

•Return on average equity of 0.22% (excluding merger costs, 8.88%, see the “Non-GAAP Financial Measures and Reconciliations” below)

•Organic loan growth, which excludes acquired Pioneer loans, 24.2% annualized

•27.6% fee revenue to total revenue mix

•Increase in net interest margin of 48 basis points to 3.56%

Denver, Colorado – July 28, 2022 – FirstSun Capital Bancorp (“FirstSun”) reported net income of $0.4 million for the second quarter of 2022, compared to net income of $7.7 million in the prior quarter and $11.3 million in the second quarter of 2021. Earnings per diluted share was $0.02 for the second quarter of 2022, compared to $0.41 in the prior quarter and $0.60 in the second quarter of 2021. Earnings for the second quarter of 2022 were impacted by the completion of our previously announced merger with Pioneer and the $16.8 million in merger costs, net of tax or $0.66 per diluted share.

Neal Arnold, FirstSun’s President and Chief Executive Officer, commented, “We are pleased with our continued progress this quarter, including organic loan growth and our growth in core returns, which excludes merger related expenses. The macro rate environment continues to impact our overall mortgage banking trends; however, we believe the strength of our diversified revenue mix will continue to position us well moving forward. Our loan portfolio continues to perform well and we remain focused on our credit quality. We expanded our business with the April 1st closing of the Pioneer merger and look forward to introducing all of our products and services to our new customers. We are actively working on the full integration of the Pioneer business following our successful completion of the system conversion during the second quarter. Our Southwest markets have exhibited strong economic growth and we look forward to our future growth across each of our markets.”

Second Quarter 2022 Results

Net income totaled $0.4 million, or $0.02 per diluted share, during the second quarter of 2022, compared to $7.7 million, or $0.41 per diluted share, during the prior quarter. Net income in the second quarter of 2022 included $16.8 million in merger costs, net of tax. The return on average assets was 0.02% in the second quarter of 2022, compared to 0.54% in the prior quarter and 0.82% in the second quarter of 2021, and the return on average equity was 0.22% in the second quarter of 2022, compared to 5.85% in the prior quarter and 8.82% in the second quarter of 2021. The negative impact in the second quarter of 2022 of merger costs to return on average assets was 0.94% and to return on average equity was 8.66%.

Net Interest Income and Net Interest Margin

Net interest income totaled $58.6 million during the second quarter of 2022, an increase of $17.3 million compared to the prior quarter. Our net interest margin increased 48 basis points to 3.56% compared to the prior quarter. Results in the second quarter of 2022, compared to the prior quarter, were driven by an increase of 52 basis points in yield on earning assets, and an increase of four basis points in the cost of interest-bearing liabilities, primarily due to the rising interest rate environment. Driven primarily by the completion of the Pioneer merger, average loans grew by $1.1 billion, and average investment securities grew $68.8 million in the second quarter of 2022, compared to the prior quarter. Total loan yield including loans held-for-sale increased by 39 basis points in the second quarter of 2022, compared to the prior quarter, primarily due to the rising interest rate environment, and to a lesser extent, the impact of the accretion of net loan discounts related to our Pioneer merger. Investment securities yield increased by 49 basis points in the second quarter of 2022, compared to the prior quarter, primarily due to higher yielding

acquired securities from the Pioneer merger and the slowing prepayment speeds on the existing portfolio. Our total cost of deposits increased by two basis points to 0.21% in the second quarter of 2022, compared to the prior quarter.

Asset Quality and Provision for Loan Losses

The provision for loan losses totaled $5.0 million during the second quarter of 2022, an increase of $1.3 million compared to the prior quarter. During the second quarter of 2022, $2.9 million of the provision for loan losses was related to certain non-impaired acquired loans marked at a premium valuation upon the closing of the Pioneer merger. The premium valuation on certain of the acquired loans was due to higher contractual interest rates compared to market interest rates upon closing of the Pioneer merger. In total, we realized a net discount valuation on the entire acquired portfolio. Due to the premium on certain of the loans, a provision for loan losses was required; however, it was not due to credit deterioration since closing of the Pioneer merger. Net recoveries during the second quarter of 2022 were $0.6 million, or a ratio of net charge-offs (recoveries) to average loans of (0.04)% annualized, compared to net charge-offs of $0.7 million, or a ratio of net charge-offs to average loans of 0.07% annualized, in the prior quarter. The allowance for loan losses as a percentage of total loans was 1.04% at June 30, 2022, compared to 1.17% at March 31, 2022. The decrease in the allowance for loan losses as a percentage of total loans relates to the acquired Pioneer loans. The ratio of nonperforming assets to total assets was 0.62% at June 30, 2022, compared to 0.64% at March 31, 2022, and 0.94% at June 30, 2021.

Noninterest Income

Noninterest income totaled $22.3 million during the second quarter of 2022, a decrease of $1.4 million from the prior quarter. Mortgage banking income decreased $2.9 million during the second quarter of 2022 from the prior quarter, primarily due to lesser sold volume and associated loan sale gains and a decline in the rate lock pipeline valuation in a rising interest rate environment. Total originations of mortgage loans held-for-sale decreased by $19.0 million, or 5.9%, in the second quarter of 2022 from the prior quarter. Noninterest income as a percentage of total revenue totaled 27.6% in the second quarter of 2022, compared to 36.5% in the prior quarter.

Noninterest Expense

Noninterest expense totaled $75.7 million during the second quarter of 2022, an increase of $23.2 million from the prior quarter, primarily driven by the Pioneer merger and the merger related expenses. Noninterest expenses for the second quarter of 2022 included $18.4 million in merger related expenses compared to $0.3 million in the prior quarter.

Tax Rate

The effective tax rate was (96.3)% in the second quarter of 2022, compared to 13.0% in the prior quarter. The effective tax rate was not meaningful due to the breakeven nature of income before income taxes in the second quarter of 2022.

Loans

Total loans were $5.4 billion at June 30, 2022, compared to $4.3 billion at March 31, 2022, an increase of $1.1 billion in the second quarter of 2022, or 99.5% on an annualized basis. Total loans, excluding impact from acquired Pioneer loans, increased $261.6 million in the second quarter of 2022, or 24.2% on an annualized basis from the prior quarter, resulting primarily from growth in commercial and industrial and residential real estate balances. See the “Non-GAAP Financial Measures and Reconciliations” below.

Deposits

Average deposits increased $1.1 billion in the second quarter of 2022, or 92.9% on an annualized basis to $5.9 billion, compared to the prior quarter. Average deposits, excluding impact from acquired Pioneer deposits, decreased $58.6 million in the second quarter of 2022, or (4.8)% on an annualized basis, compared to the prior quarter. See the “Non-GAAP Financial Measures and Reconciliations” below. Noninterest-bearing deposit accounts represented 32.7% of total deposits at June 30, 2022 and the loan-to-deposit ratio was 90.8% at June 30, 2022.

Capital

Capital ratios remain strong and above “well-capitalized” thresholds. As of June 30, 2022, our common equity tier 1 risk-based capital ratio was 9.59%, total risk-based capital ratio was 11.60% and tier 1 leverage ratio was 8.89%. Book value per common share was $30.34 at June 30, 2022, an increase of $2.24 from March 31, 2022. Tangible book value per common share, a non-GAAP financial measure, was $24.76 at June 30, 2022, a decrease of $1.11 from March 31, 2022. The decline in the tangible book value per common share at June 30, 2022 relates to the increases in our intangible assets as a result of the Pioneer merger, and the impact of the decline in accumulated other comprehensive income (loss), net, for unrealized losses in our available-for-sale securities portfolio resulting from the rising interest rate environment.

Non-GAAP Financial Measures

This press release contains financial information and performance 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 disclosures 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 types of non-GAAP measures used in this press release:

•Tangible stockholders’ equity

•Tangible assets

•Tangible stockholders’ equity to tangible assets

•Tangible book value per common share

•Net income excluding merger costs

•Return on average total assets excluding merger costs

•Return on average stockholders’ equity excluding merger costs

•Efficiency ratio excluding merger related expenses

•Diluted earnings per share excluding merger related costs

•Fully tax equivalent (FTE) net interest income and net interest margin on FTE basis

•Total loan growth, excluding Pioneer acquired loans, annualized

•Total average deposit growth, excluding Pioneer acquired deposits, annualized

The tables beginning on page 12 provide a reconciliation of each non-GAAP financial measure to the most comparable GAAP equivalent.

About FirstSun Capital Bancorp

FirstSun Capital Bancorp, headquartered in Denver, Colorado, is the financial holding company for Sunflower Bank, N.A., which operates as Sunflower Bank, First National 1870 and Guardian Mortgage. Sunflower Bank provides a full range of relationship-focused services to meet personal, business and wealth management financial objectives, with a branch network in five states and mortgage capabilities in 43 states. FirstSun had total consolidated assets of $7.1 billion as of June 30, 2022. On April 1, 2022, we completed our merger with Pioneer Bancshares, Inc.

First National 1870 and Guardian Mortgage are divisions of Sunflower Bank, N.A. To learn more, visit ir.firstsuncb.com, SunflowerBank.com, FirstNational1870.com or GuardianMortgageOnline.com.

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 regarding the financial condition, results of operations, business plans and the future performance of FirstSun. Words such as “anticipates,” “believes,” “estimates,” “expects,” “focused,” “forecasts,” “intends,” “plans,” “projects,” “may,” “will,” “should,” “would,” “could,” “look forward” and other similar expressions are intended to identify these forward-looking statements. Forward-looking statements are not based on historical facts but instead represent management’s expectations and assumptions regarding FirstSun’s business, the economy and other future conditions. Such statements involve inherent uncertainties, risks and changes in circumstances that are difficult to predict. As such, FirstSun’s actual results may differ materially from those contemplated by forward-looking statements. While there can be no assurance that any list of risks and uncertainties or risk factors is complete, important factors that could cause actual results to differ materially from those contemplated by forward-looking statements include, without limitation, the following:

•the possibility that the anticipated benefits of the merger with Pioneer, which closed on April 1, 2022, including anticipated cost savings and strategic gains, are not realized when expected or at all, including as a result of the impact of, or problems arising from, the integration of the two companies or as a result of the strength of the economy, competitive factors in the areas where FirstSun does business or as a result of other unexpected factors or events;

•the COVID-19 pandemic and its continuing effects on the economic and business environments in which we operate;

•potential fluctuations or unanticipated changes in the interest rate environment, including interest rate changes made by the Federal Reserve, the discontinuation of LIBOR as an interest rate benchmark, and cash flow reassessments, may reduce net interest margin and/or the volumes and values of loans made or held as well as the value of other financial assets;

•the inability to sustain revenue and earnings growth;

•the inability to efficiently manage operating expenses;

•the impact of competition with other financial institutions, including pricing pressures and the resulting impact on FirstSun’s results, including as a result of compression to net interest margin;

•deterioration in the financial condition of borrowers resulting in significant increases in loan losses and provisions for those losses;

•changes in loan underwriting, credit review or loss reserve policies associated with economic conditions, examination conclusions, or regulatory developments;

•adverse changes in asset quality and credit risk; and

•the potential effects of events beyond our control that may have a destabilizing effect on financial markets and the economy, such as epidemics and pandemics, war or terrorist activities, disruptions in our customers’ supply chains, disruptions in transportation, essential utility outages or trade disputes and related tariffs.

Further information regarding additional factors which could affect the forward-looking statements contained 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 FirstSun’s Annual Report on Form 10-K for the year ended December 31, 2021, and other documents subsequently filed by FirstSun with the United States Securities and Exchange Commission (“SEC”). Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date they are made. Except to the extent required by applicable law or regulation, FirstSun undertakes no obligation to revise or update any forward-looking statements.

Summary Data:


	As of and for the quarter ended									As of and for the six months ended
($ in thousands, except per share amounts)	June 30, 2022			March 31, 2022			June 30, 2021			June 30, 2022			June 30, 2021

Net interest income	$	58,585		$	41,285		$	36,400		$	99,870		$	74,817
Provision for (benefit from) loan losses	5,000			3,700			(1,400)			8,700			(1,750)
Noninterest income	22,302			23,693			32,283			45,995			66,164
Noninterest expense	75,668			52,467			56,624			128,135			111,804
Income before income taxes	219			8,811			13,459			9,030			30,927
Provision for income taxes	(211)			1,142			2,178			931			5,308
Net income	430			7,669			11,281			8,099			25,619
Net income, excluding merger costs (1)	17,208			7,922			12,349			25,130			26,687

Diluted earnings per share	$	0.02		$	0.41		$	0.60		$	0.36		$	1.37
Diluted earnings per share, excluding merger costs (1)	$	0.68		$	0.42		$	0.66		$	1.13		$	1.43
Return on average assets	0.02		%	0.54		%	0.82		%	0.25		%	0.97		%
Return on average assets, excluding merger costs (1)	0.96		%	0.56		%	0.90		%	0.78		%	1.01		%
Return on average equity	0.22		%	5.85		%	8.82		%	2.49		%	10.12		%
Return on average equity, excluding merger costs (1)	8.88		%	6.04		%	9.65		%	7.73		%	10.54		%
Net interest margin	3.56		%	3.08		%	2.81		%	3.34		%	3.00		%
Net interest margin (FTE basis) (1)	3.64		%	3.17		%	2.93		%	3.43		%	3.13		%
Efficiency ratio	93.55		%	80.75		%	82.44		%	87.84		%	79.30		%
Efficiency ratio, excluding merger related expenses (1)	70.74		%	80.28		%	80.58		%	74.99		%	78.40		%
Fee revenue to total revenue	27.57		%	36.46		%	47.00		%	31.53		%	46.93		%

Total assets	$	7,087,184		$	5,733,748		$	5,563,076		$	7,087,184		$	5,563,076
Total loans held-for-sale	61,253			57,700			136,999			61,253			136,999
Total loans held-for-investment	5,387,928			4,315,031			3,794,355			5,387,928			3,794,355
Total deposits	5,933,022			4,946,482			4,748,698			5,933,022			4,748,698
Total stockholders' equity	754,034			515,541			510,582			754,034			510,582
Period end loan-to-deposit ratio	90.81		%	87.23		%	79.90		%	90.81		%	79.90		%
Book value per common share	$	30.34		$	28.10		$	27.87		30.34			27.87
Tangible book value per common share (1)	$	24.76		$	25.87		$	25.57		24.76			25.57
(1) Represents a non-GAAP financial measure. See the tables beginning on page 12 for a reconciliation of each non-GAAP measure to the most comparable GAAP equivalent.
(2) Loans are inclusive of loans held-for-sale and loans held-for-investment.

Condensed Consolidated Statements of Income (Unaudited):


	As of and for the quarter ended						As of and for the six months ended
($ in thousands, except per share amounts)	June 30, 2022		March 31, 2022		June 30, 2021		June 30, 2022		June 30, 2021

Total interest income	$	63,228	$	44,661	$	40,069	$	107,889	$	82,515
Total interest expense	4,643		3,376		3,669		8,019		7,698
Net interest income	58,585		41,285		36,400		99,870		74,817
Provision for (benefit from) loan losses	5,000		3,700		(1,400)		8,700		(1,750)
Net interest income after provision for loan losses	53,585		37,585		37,800		91,170		76,567
Noninterest income:
Service charges on deposits	4,379		3,925		2,645		8,304		5,188
Credit and debit card fees	2,990		2,415		2,544		5,405		4,668
Trust and investment advisory fees	1,909		1,947		1,992		3,856		3,897
Mortgage banking income, net	11,671		14,561		22,936		26,232		47,993
Other noninterest income	1,353		845		2,166		2,198		4,418
Total noninterest income	22,302		23,693		32,283		45,995		66,164
Noninterest expense:
Salaries and benefits	35,248		34,225		38,449		69,473		77,068
Occupancy and equipment	7,753		6,833		6,527		14,586		13,224
Amortization of intangible assets	935		327		354		1,262		708
Merger related expenses	18,448		303		1,279		18,751		1,279
Other noninterest expenses	13,284		10,779		10,015		24,063		19,525
Total noninterest expense	75,668		52,467		56,624		128,135		111,804
Income before income taxes	219		8,811		13,459		9,030		30,927
(Benefit) provision for income taxes	(211)		1,142		2,178		931		5,308
Net income	$	430	$	7,669	$	11,281	$	8,099	$	25,619

Earnings per share - basic	$	0.02	$	0.42	$	0.62	$	0.38	$	1.40
Earnings per share - diluted	$	0.02	$	0.41	$	0.60	$	0.36	$	1.37

Condensed Consolidated Balance Sheets as of (Unaudited):


($ in thousands)	June 30, 2022		March 31, 2022		June 30, 2021
Assets
Cash and cash equivalents	$	510,701	$	487,689	$	840,600
Securities available-for-sale, at fair value	578,751		556,723		508,975
Securities held-to-maturity	39,803		16,799		21,894
Loans held-for-sale, at fair value	61,253		57,700		136,999
Loans	5,387,928		4,315,031		3,794,355
Allowance for loan losses	(56,077)		(50,509)		(42,978)
Loans, net	5,331,851		4,264,522		3,751,377

Mortgage servicing rights, at fair value	66,047		60,481		40,844
Premises and equipment, net	89,674		52,198		54,304
Other real estate owned and foreclosed assets, net	5,391		5,162		4,013
Goodwill	119,975		33,050		33,050
Intangible assets, net	18,760		7,923		8,959
All other assets	264,978		191,501		162,061
Total assets	$	7,087,184	$	5,733,748	$	5,563,076

Liabilities and Stockholders' Equity
Liabilities:
Deposits:
Noninterest-bearing demand deposit accounts	$	1,942,078	$	1,662,980	$	1,359,112
Interest-bearing deposit accounts:
Interest-bearing demand accounts	165,287		155,388		194,840
Savings accounts and money market accounts	3,204,704		2,742,393		2,746,373
NOW accounts	50,126		74,106		101,749
Certificate of deposit accounts	570,827		311,615		346,624
Total deposits	5,933,022		4,946,482		4,748,698

Securities sold under agreements to repurchase	70,838		69,627		113,786
Federal Home Loan Bank advances	159,968		40,000		40,000
Other borrowings	79,959		87,799		68,910
Other liabilities	89,363		74,299		81,100
Total liabilities	6,333,150		5,218,207		5,052,494

Stockholders' equity:
Preferred stock	—		—		—
Common stock	2		2		2
Additional paid-in capital	486,755		262,071		260,516
Treasury stock	—		(38,148)		(38,148)
Retained earnings	306,714		306,284		281,070
Accumulated other comprehensive (loss) income, net	(39,437)		(14,668)		7,142
Total stockholders' equity	754,034		515,541		510,582
Total liabilities and stockholders' equity	$	7,087,184	$	5,733,748	$	5,563,076

Share Data as of and for the periods ended:


	As of and for the quarter ended
	June 30, 2022		March 31, 2022		June 30, 2021

Weighted average common shares outstanding, basic	24,760,282		18,346,288		18,321,659
Weighted average common shares outstanding, diluted	25,458,311		18,899,852		18,761,034
Period end common shares outstanding	24,850,954		18,346,288		18,321,659
Book value per common share	$	30.34	$	28.10	$	27.87
Tangible book value per common share (1)	$	24.76	$	25.87	$	25.57

Consolidated Capital Ratios as of:


	June 30, 2022		March 31, 2022		June 30, 2021

Stockholders' equity to total assets	10.64	%	8.99	%	9.18	%
Tangible equity to tangible assets (1)	8.86	%	8.34	%	8.49	%
Tier 1 leverage ratio	8.89	%	8.42	%	8.21	%
Common equity tier 1 risk-based capital ratio	9.59	%	9.27	%	10.28	%
Tier 1 risk-based capital ratio	9.59	%	9.27	%	10.28	%
Total risk-based capital ratio	11.60	%	11.74	%	12.44	%
(1) Represents a non-GAAP financial measure. See the tables beginning on page 12 for a reconciliation of each non-GAAP measure to the most comparable GAAP equivalent.

Summary of Net Interest Margin:


	For the quarter ended June 30, 2022							For the quarter ended March 31, 2022							For the quarter ended June 30, 2021
(In thousands)	Average Balance		Interest			Average Yield/Rate		Average Balance		Interest			Average Yield/Rate		Average Balance		Interest			Average Yield/Rate
Interest Earning Assets
Loans held-for-sale	$	70,430	$	1,269		7.21	%	$	60,895	$	694		4.56	%	$	133,592	$	1,168		3.50	%
Loans held-for-investment (1)	5,264,355		57,316			4.35	%	4,123,920		41,164			3.99	%	3,736,120		36,557			3.91	%
Investment securities	651,180		3,333			2.05	%	582,333		2,275			1.56	%	514,248		1,877			1.46	%
Interest-bearing cash and other assets	591,208		1,310			0.89	%	592,478		528			0.36	%	800,851		467			0.23	%
Total earning assets	6,577,173		63,228			3.85	%	5,359,626		44,661			3.33	%	5,184,811		40,069			3.09	%
Other assets	612,253							314,043							294,765
Total assets	$	7,189,426						$	5,673,669						$	5,479,576

Interest-bearing liabilities
Demand and NOW deposits	$	219,502	$	229		0.42	%	$	223,020	$	124		0.22	%	$	317,651	$	286		0.36	%
Savings deposits	516,045		133			0.10	%	468,713		91			0.08	%	452,537		142			0.10	%
Money market deposits	2,774,713		1,172			0.17	%	2,306,638		840			0.15	%	2,233,460		1,120			0.21	%
Certificates of deposits	581,803		638			0.44	%	317,948		519			0.65	%	351,350		801			0.91	%
Total deposits	4,092,063		2,172			0.21	%	3,316,319		1,574			0.19	%	3,354,998		2,349			0.28	%
Repurchase agreements	56,247		15			0.11	%	71,425		8			0.04	%	144,421		18			0.05	%
Total deposits and repurchase agreements	4,148,310		2,187			0.21	%	3,387,744		1,582			0.19	%	3,499,419		2,367			0.27	%
FHLB borrowings	184,100		771			1.67	%	40,229		148			1.48	%	40,000		150			1.50	%
Other long-term borrowings	82,154		1,685			8.21	%	86,191		1,646			7.63	%	68,760		1,152			6.70	%
Total interest-bearing liabilities	4,414,564		4,643			0.42	%	3,514,164		3,376			0.38	%	3,608,179		3,669			0.41	%
Noninterest-bearing deposits	1,923,870							1,566,088							1,283,536
Other liabilities	75,768							68,999							76,080
Stockholders' equity	775,224							524,418							511,781
Total liabilities and stockholders' equity	$	7,189,426						$	5,673,669						$	5,479,576

Net interest income			$	58,585						$	41,285						$	36,400
Net interest spread			3.43		%					2.95		%					2.68		%
Net interest margin			3.56		%					3.08		%					2.81		%
Net interest margin (on a FTE basis) (2)			3.64		%					3.17		%					2.93		%
(1) Includes nonaccrual loans.
(2) Represents a non-GAAP financial measure. See the tables beginning on page 12 for a reconciliation of each non-GAAP measure to the most comparable GAAP equivalent.


	For the six months ended
	June 30, 2022							June 30, 2021
(In thousands)	Average Balance		Interest			Average Yield/Rate		Average Balance		Interest			Average Yield/Rate
Interest Earning Assets
Loans held-for-sale	$	65,689	$	1,963		5.98	%	$	141,909	$	2,271		3.20	%
Loans held-for-investment (1)	4,697,288		98,480			4.19	%	3,751,632		75,713			4.04	%
Investment securities	616,947		5,608			1.82	%	506,109		3,692			1.46	%
Interest-bearing cash and other assets	591,839		1,838			0.62	%	591,436		839			0.28	%
Total earning assets	5,971,763		107,889			3.61	%	4,991,086		82,515			3.31	%
Other assets	463,972							287,590
Total assets	$	6,435,735						$	5,278,676

Interest-bearing liabilities
Demand and NOW deposits	$	221,251	$	353		0.32	%	$	287,440	$	497		0.35	%
Savings deposits	492,510		224			0.09	%	454,719		262			0.12	%
Money market deposits	2,541,968		2,012			0.16	%	2,142,197		2,251			0.21	%
Certificates of deposits	450,604		1,157			0.51	%	356,474		1,743			0.98	%
Total deposits	3,706,333		3,746			0.20	%	3,240,830		4,753			0.29	%
Repurchase agreements	63,795		23			0.07	%	137,255		36			0.05	%
Total deposits and repurchase agreements	3,770,128		3,769			0.20	%	3,378,085		4,789			0.28	%
FHLB borrowings	112,562		919			1.63	%	45,096		607			2.69	%
Other long-term borrowings	84,161		3,331			7.91	%	68,665		2,302			6.71	%
Total interest-bearing liabilities	3,966,851		8,019			0.40	%	3,491,846		7,698			0.44	%
Noninterest-bearing deposits	1,745,967							1,200,921
Other liabilities	72,403							79,706
Stockholders' equity	650,514							506,203
Total liabilities and stockholders' equity	$	6,435,735						$	5,278,676

Net interest income			$	99,870						$	74,817
Net interest spread			3.21		%					2.87		%
Net interest margin			3.34		%					3.00		%
Net interest margin (on a FTE basis) (2)			3.43		%					3.13		%
(1) Includes nonaccrual loans.
(2) Represents a non-GAAP financial measure. See the tables beginning on page 12 for a reconciliation of each non-GAAP measure to the most comparable GAAP equivalent.

Loan Portfolio


($ in thousands)	June 30, 2022		March 31, 2022		June 30, 2022 vs March 31, 2022 % change		June 30, 2021		June 30, 2022 vs June 30, 2021 % change

Commercial	$	2,674,043	$	2,515,203	6.3	%	$	2,211,084	20.9	%
Commercial real estate	1,750,882		1,214,505		44.2	%	1,124,131		55.8	%
Residential real estate	918,580		567,342		61.9	%	444,491		106.7	%
Consumer	44,423		17,981		147.1	%	14,649		203.2	%
Total loans held-for-investment	$	5,387,928	$	4,315,031	24.9	%	$	3,794,355	42.0	%

Asset Quality:


	As of and for the quarter ended									As of and for the six months ended
($ in thousands)	June 30, 2022			March 31, 2022			June 30, 2021			June 30, 2022			June 30, 2021

Net (recoveries) charge-offs	$	(568)		$	738		$	2,836		$	170		$	3,038
Allowance for loan losses	$	56,077		$	50,509		$	42,978		$	56,077		$	42,978
Nonperforming loans, including nonaccrual loans, accrual TDR’s, and accrual loans greater than 90 days past due	$	38,283		$	31,367		$	48,203		$	38,283		$	48,203
Nonperforming assets	$	43,674		$	36,529		$	52,216		$	43,674		$	52,216
Ratio of net (recoveries) charge-offs to average loans outstanding	(0.04)		%	0.07		%	0.30		%	0.01		%	0.16		%
Allowance for loan losses to total loans outstanding	1.04		%	1.17		%	1.13		%	1.04		%	1.13		%

Allowance for loan losses to total nonperforming loans	146.48		%	161.03		%	89.16		%	146.48		%	89.16		%
Nonperforming loans to total loans	0.71		%	0.73		%	1.27		%	0.71		%	1.27		%
Nonperforming assets to total assets	0.62		%	0.64		%	0.94		%	0.62		%	0.94		%

Non-GAAP Financial Measures and Reconciliations:


	As of and for the quarter ended									As of and for the six months ended
($ in thousands, except share and per share amounts)	June 30, 2022			March 31, 2022			June 30, 2021			June 30, 2022			June 30, 2021
Tangible stockholders’ equity:
Total stockholders' equity (GAAP)	$	754,034		$	515,541		$	510,582		$	754,034		$	510,582
Less: Goodwill and other intangible assets
Goodwill	(119,975)			(33,050)			(33,050)			(119,975)			(33,050)
Other intangible assets	(18,760)			(7,923)			(8,959)			(18,760)			(8,959)
Total tangible stockholders' equity (non-GAAP)	$	615,299		$	474,568		$	468,573		$	615,299		$	468,573
Tangible assets:
Total assets (GAAP)	$	7,087,184		$	5,733,748		$	5,563,076		$	7,087,184		$	5,563,076
Less: Goodwill and other intangible assets
Goodwill	(119,975)			(33,050)			(33,050)			(119,975)			(33,050)
Other intangible assets	(18,760)			(7,923)			(8,959)			(18,760)			(8,959)
Total tangible assets (non-GAAP)	$	6,948,449		$	5,692,775		$	5,521,067		$	6,948,449		$	5,521,067
Tangible stockholders’ equity to tangible assets:
Common equity to total assets (GAAP)	10.64		%	8.99		%	9.18		%	10.64		%	9.18		%
Less: Impact of goodwill and other intangible assets	1.78		%	0.65		%	0.69		%	1.78		%	0.69		%
Tangible common equity to tangible assets (non-GAAP)	8.86		%	8.34		%	8.49		%	8.86		%	8.49		%
Tangible book value per common share:
Stockholders' equity (GAAP)	$	754,034		$	515,541		$	510,582		$	754,034		$	510,582
Tangible stockholders' equity (non-GAAP)	$	615,299		$	474,568		$	468,573		$	615,299		$	468,573
Total common shares outstanding	24,850,954			18,346,288			18,321,659			24,850,954			18,321,659
Book value per common share (GAAP)	$	30.34		$	28.10		$	27.87		$	30.34		$	27.87
Tangible book value per common share (non-GAAP)	$	24.76		$	25.87		$	25.57		$	24.76		$	25.57
Net income excluding merger costs:
Net income (GAAP)	$	430		$	7,669		$	11,281		$	8,099		$	25,619
Add: Merger costs
Merger related expenses	18,448			303			1,279			18,751			1,279
Income tax effect on merger related expenses	(4,033)			(50)			(211)			(4,083)			(211)
Provision for loan loss on Pioneer loans marked at a premium	2,884			—			—			2,884			—
Income tax effect on provision for loan loss on Pioneer loans marked at a premium	(521)			—			—			(521)			—
Total merger costs	16,778			253			1,068			17,031			1,068
Net income excluding merger costs (non-GAAP)	$	17,208		$	7,922		$	12,349		$	25,130		$	26,687


	As of and for the quarter ended									As of and for the six months ended
($ in thousands, except share and per share amounts)	June 30, 2022			March 31, 2022			June 30, 2021			June 30, 2022			June 30, 2021
Return on average total assets excluding merger costs:
Return on average total assets (ROAA) (GAAP)	0.02		%	0.54		%	0.82		%	0.25		%	0.97		%
Add: Impact of merger costs, net of tax	0.94		%	0.02		%	0.08		%	0.53		%	0.04		%
ROAA excluding merger costs (non-GAAP)	0.96		%	0.56		%	0.90		%	0.78		%	1.01		%
Return on average stockholders’ equity excluding merger costs:
Return on average stockholders' equity (ROAE) (GAAP)	0.22		%	5.85		%	8.82		%	2.49		%	10.12		%
Add: Impact of merger costs, net of tax	8.66		%	0.19		%	0.83		%	5.24		%	0.42		%
ROAE excluding merger costs (non-GAAP)	8.88		%	6.04		%	9.65		%	7.73		%	10.54		%
Efficiency ratio excluding merger related expenses:
Efficiency ratio (GAAP)	93.55		%	80.75		%	82.44		%	87.84		%	79.30		%
Less: Impact of merger related expenses	22.81		%	0.47		%	1.86		%	12.85		%	0.90		%
Efficiency ratio excluding merger related expenses (non-GAAP)	70.74		%	80.28		%	80.58		%	74.99		%	78.40		%
Diluted earnings per share excluding merger costs:
Diluted earnings per share (GAAP)	$	0.02		$	0.41		$	0.60		$	0.36		$	1.37
Add: Impact of merger costs, net of tax	0.66			0.01			0.06			0.77			0.06
Diluted earnings per share excluding merger costs (non-GAAP)	$	0.68		$	0.42		$	0.66		$	1.13		$	1.43








Fully tax equivalent (FTE) net interest income and net interest margin on FTE basis:
Net interest income (GAAP)	$	58,585		$	41,285		$	36,400		$	99,870		$	74,817
Gross income effect of tax exempt income	1,284			1,321			1,704			2,605			3,495
FTE net interest income (non-GAAP)	$	59,869		$	42,606		$	38,104		$	102,475		$	78,312
Average earning assets	$	6,577,173		$	5,359,626		$	5,184,811		$	5,971,763		$	4,991,086
Net interest margin	3.56		%	3.08		%	2.81		%	3.34		%	3.00		%
Net interest margin on FTE basis (non-GAAP)	3.64		%	3.17		%	2.93		%	3.43		%	3.13		%


($ in thousands)	As of June 30, 2022

Total loan growth, excluding Pioneer acquired loans, annualized:
Total loans for the quarter ended:
June 30, 2022	$	5,387,928
March 31, 2022	4,315,031
Total loan growth for the quarter ended June 30, 2022	1,072,897
Less: Acquired loans at date of merger, net of purchase accounting adjustments	(811,300)
Total loan increase for the quarter ended June 30, 2022	$	261,597
Total loan growth, annualized (GAAP)	99.5		%
Total loan growth, excluding Pioneer acquired loans, annualized (non-GAAP)	24.2		%
Total average deposit growth, excluding Pioneer acquired deposits, annualized:
Total average deposits for the quarter ended:
June 30, 2022	$	6,015,933
March 31, 2022	4,882,407
Total average deposit growth for the quarter ended June 30, 2022	1,133,526
Less: Acquired deposits at date of merger, net of purchase accounting adjustments	(1,192,081)
Total average deposit decrease for the quarter ended June 30, 2022	$	(58,555)
Total average deposit growth, annualized (GAAP)	92.9		%
Total average deposit growth, excluding Pioneer acquired deposits, annualized (non-GAAP)	(4.8)		%


Delaware	333-258176	81-4552413
(State or other jurisdiction of incorporation or organization)	(Commission File Number)	(I.R.S. Employer Identification Number)


☐			Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐			Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐			Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐			Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))


Exhibit No.						Description
99.1						Earnings Press Release dated July 28, 2022.
104						Cover Page Interactive Data File (embedded within the Inline XBRL document).


	FIRSTSUN CAPITAL BANCORP

Date: July 28, 2022	By:	/s/ Robert A. Cafera, Jr.
	Name:	Robert A. Cafera, Jr.
	Title:	Executive Vice President and Chief Financial Officer
		(Principal Financial Officer)