Regional banking company FirstSun Capital Bancorp (NASDAQ: FSUN) beat Wall Street’s revenue expectations in Q2 CY2025, with sales up 11.2% year on year to $105.6 million. Its GAAP profit of $0.93 per share was 5.1% above analysts’ consensus estimates.
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FirstSun Capital Bancorp (FSUN) Q2 CY2025 Highlights:
- Net Interest Income: $78.5 million vs analyst estimates of $78.61 million (7.7% year-on-year growth, in line)
- Net Interest Margin: 4.1% vs analyst estimates of 4.1% (flat year on year, 5.2 bps miss)
- Revenue: $105.6 million vs analyst estimates of $103.3 million (11.2% year-on-year growth, 2.2% beat)
- Efficiency Ratio: 64.5% vs analyst estimates of 64.1% (0.4 percentage point miss)
- EPS (GAAP): $0.93 vs analyst estimates of $0.89 (5.1% beat)
- Market Capitalization: $1.08 billion
Neal Arnold, FirstSun’s Chief Executive Officer and President, commented, “Our strong results this quarter continue to demonstrate the success of our relationship-focused business model, a well-diversified business mix, and the execution of our core strategic initiatives. Performance this quarter was highlighted by exceptional deposit growth, a stable net interest margin, an increase in service fees to revenue mix to 25.6% and 12.0% earnings per share growth. While we saw higher credit costs this quarter amidst the challenging banking environment, the hard work and focus of all our teams across the organization is recognized in our results. We continue to diligently focus on credit administration and responsibly growing the business by delivering the best solutions to all our customers throughout our high growth southwestern and western market footprint.”
Company Overview
Tracing its roots back to 1892 when it first opened its doors in Kansas, FirstSun Capital Bancorp (NASDAQ: FSUN) operates Sunflower Bank, providing commercial and consumer banking services to businesses and individuals across the Southwest region.
Sales Growth
Net interest income and and fee-based revenue are the two pillars supporting bank earnings. The former captures profit from the gap between lending rates and deposit costs, while the latter encompasses charges for banking services, credit products, wealth management, and trading activities.
Luckily, FirstSun Capital Bancorp’s revenue grew at an impressive 10.4% compounded annual growth rate over the last five years. Its growth surpassed the average bank company and shows its offerings resonate with customers, a great starting point for our analysis.
Long-term growth is the most important, but within financials, a half-decade historical view may miss recent interest rate changes and market returns. FirstSun Capital Bancorp’s recent performance shows its demand has slowed significantly as its annualized revenue growth of 3.5% over the last two years was well below its five-year trend. 
Note: Quarters not shown were determined to be outliers, impacted by outsized investment gains/losses that are not indicative of the recurring fundamentals of the business.
This quarter, FirstSun Capital Bancorp reported year-on-year revenue growth of 11.2%, and its $105.6 million of revenue exceeded Wall Street’s estimates by 2.2%.
Net interest income made up 72.6% of the company’s total revenue during the last five years, meaning lending operations are FirstSun Capital Bancorp’s largest source of revenue.
While banks generate revenue from multiple sources, investors view net interest income as the cornerstone - its predictable, recurring characteristics stand in sharp contrast to the volatility of non-interest income.
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Tangible Book Value Per Share (TBVPS)
Banks operate as balance sheet businesses, with profits generated through borrowing and lending activities. Valuations reflect this reality, emphasizing balance sheet strength and long-term book value compounding ability.
This is why we consider tangible book value per share (TBVPS) the most important metric to track for banks. TBVPS represents the real, liquid net worth per share of a bank, excluding intangible assets that have debatable value upon liquidation. EPS can become murky due to acquisition impacts or accounting flexibility around loan provisions, and TBVPS resists financial engineering manipulation.
FirstSun Capital Bancorp’s TBVPS grew at an excellent 8.7% annual clip over the last four years. TBVPS growth has also accelerated recently, growing by 11.5% annually over the last two years from $28.76 to $35.77 per share.
Over the next 12 months, Consensus estimates call for FirstSun Capital Bancorp’s TBVPS to grow by 10.5% to $39.52, solid growth rate.
Key Takeaways from FirstSun Capital Bancorp’s Q2 Results
It was encouraging to see FirstSun Capital Bancorp beat analysts’ revenue and EPS expectations this quarter. Overall, this print had some key positives. The stock remained flat at $39.27 immediately following the results.
Big picture, is FirstSun Capital Bancorp a buy here and now? The latest quarter does matter, but not nearly as much as longer-term fundamentals and valuation, when deciding if the stock is a buy. We cover that in our actionable full research report which you can read here, it’s free.
