Recent Quotes View Full List My Watchlist Create Watchlist Indicators DJI Nasdaq Composite SPX Gold Crude Oil Hydroworld Market Index Markets Stocks ETFs Tools Overview News Currencies International Treasuries FirstSun Capital Bancorp Reports First Quarter 2023 Results By: FirstSun Capital Bancorp via Business Wire May 01, 2023 at 08:00 AM EDT First Quarter 2023 Highlights: Net income of $26.3 million, $1.03 per diluted share Net interest margin of 4.39% Return on average total assets of 1.44% Return on average stockholders’ equity of 13.37% Loan growth of 10.1% annualized 20.3% fee revenue to total revenue FirstSun Capital Bancorp (“FirstSun”) (OTCQX: FSUN) reported net income of $26.3 million for the first quarter of 2023 compared to net income of $7.7 million for the first quarter of 2022. Earnings per diluted share were $1.03 for the first quarter of 2023 compared to $0.41 for the first quarter of 2022. Earnings for the first quarter of 2022 were impacted by $0.3 million of merger costs, net of tax, or $0.01 per diluted share. Neal Arnold, FirstSun’s President and Chief Executive Officer, commented, “We are very pleased with our strong operating results this quarter amidst a more challenging banking environment. Highlights this quarter include net interest margin of 4.39%, steady loan growth, deposit stability and continued credit quality strength. Our industry has recently been reminded of the benefits of a well-diversified and balanced business mix as well as the importance of asset/liability management. We believe our diversified business model with its emphasis across our commercial and industrial business and consumer clients, our balanced mix of spread and service-based revenues, our geographic diversity, along with our disciplined and conservative balance sheet management provides a stable platform for responsible growth and favorable performance even in difficult times. Additionally, we believe our strong capital base, our granular and stable deposit base, our securities portfolio positioning and our overall asset sensitive profile provides us with flexibility as the competition for deposits increases in this environment.” First Quarter 2023 Results Net income totaled $26.3 million, or $1.03 per diluted share, during the first quarter of 2023, compared to $24.6 million, or $0.96 per diluted share, during the prior quarter. The return on average total assets was 1.44% in the first quarter of 2023, compared to 1.38% in the prior quarter, and the return on average stockholders’ equity was 13.37% in the first quarter of 2023, compared to 12.89% in the prior quarter. Net Interest Income and Net Interest Margin Net interest income totaled $74.1 million during the first quarter of 2023, an increase of $0.8 million compared to the prior quarter. Our net interest margin decreased 6 basis points to 4.39% compared to the prior quarter. Results in the first quarter of 2023, compared to the prior quarter, were driven by an increase of 45 basis points in yield on earning assets, offset by an increase of 71 basis points in the cost of interest-bearing liabilities. Average loans increased by $0.2 billion in the first quarter of 2023, compared to the prior quarter. Loan yield increased by 42 basis points to 5.88% in the first quarter of 2023, compared to the prior quarter, primarily due to the rising interest rate environment and its impact on variable rate loans in the loan portfolio and higher yields on new originations. Average interest-bearing deposits increased $0.3 billion in the first quarter of 2023, compared to the prior quarter. Total cost of deposits increased by 74 basis points to 1.39% in the first quarter of 2023, compared to the prior quarter, primarily due to an increase in deposit pricing as a result of the rising interest rate environment. Average FHLB borrowings decreased $17.8 million in the first quarter of 2023, compared to the prior quarter. The cost of FHLB borrowings increased by 88 basis points to 4.68% in the first quarter of 2023, compared to the prior quarter, primarily due to the rising interest rate environment. Asset Quality and Provision for Credit Losses The provision for credit losses totaled $3.4 million during the first quarter of 2023, a decrease of $2.2 million from the $5.6 million in the prior quarter, primarily due to slower loan growth and generally neutral macroeconomic indicators relative to the prior quarter. Net charge-offs during the first quarter of 2023 were $0.1 million, resulting in a negligible ratio of net charge-offs to average loans annualized, compared to net charge-offs (recoveries) of $(0.6) million, or a ratio of net charge-offs (recoveries) to average loans of (0.04)% annualized, in the prior quarter. The allowance for credit losses as a percentage of total loans was 1.23% at March 31, 2023, or an increase of 11 basis points from the prior quarter. On January 1, 2023, we adopted ASU 2016-13, Financial Instruments - Credit Losses (Topic 326), which increased our allowance for credit losses as a percentage of total loans to 1.20% at adoption, or an eight basis point increase from 1.12% at December 31, 2022. The increase in our allowance for credit losses was a result of changing from an “incurred loss” model, which encompasses allowances for current known and incurred losses within the portfolio, to an “expected loss” model, which encompasses allowances for losses expected to be recognized over the life of the portfolio. The ratio of nonperforming assets to total assets was 0.51% at March 31, 2023, compared to 0.48% at December 31, 2022. Noninterest Income Noninterest income totaled $18.9 million during the first quarter of 2023, an increase of $0.3 million from the prior quarter. Mortgage banking income increased $1.2 million during the first quarter of 2023, primarily due to an increase in fair value of our interest rate lock commitments from the prior quarter. Total originations of mortgage loans held-for-sale increased by $9.9 million, or 5.3%, in the first quarter of 2023 from the prior quarter. Other noninterest income decreased $0.8 million during the first quarter of 2023, primarily due to a decrease in loan syndication fees and customer accommodation swap fees. Noninterest income as a percentage of total revenue totaled 20.3%, which is unchanged from the prior quarter. Noninterest Expense Noninterest expense totaled $56.3 million during the first quarter of 2023, an increase of $0.8 million from the prior quarter. Salaries and employee benefits increased $2.7 million from the prior quarter primarily due to higher benefit costs generally incurred in the first quarter of each year. Occupancy and equipment expenses increased $0.5 million from the prior quarter primarily due to the impact of adoption in the prior quarter of ASU 2016-02, Leases. Amortization of intangible assets decreased $1.0 million from the prior quarter. Other noninterest expenses decreased $1.3 million from the prior quarter primarily due to data processing and loan appraisal, servicing, and collection expenses as we experienced a lesser level of transaction volume in the first quarter of 2023. The efficiency ratio for the first quarter of 2023 was 60.47% compared to 60.33% in the prior quarter. Tax Rate The effective tax rate was 21.4% in the first quarter of 2023, compared to 20.4% in the prior quarter. Loans Total loans were $6.1 billion at March 31, 2023, compared to $5.9 billion at December 31, 2022, an increase of $149.1 million in the first quarter of 2023, or 10.1% on an annualized basis, resulting primarily from growth in commercial and industrial and residential real estate balances. Deposits Average deposits were $5.8 billion for the first quarter of 2023, compared to $5.7 billion for the prior quarter, an increase of $0.1 billion in the first quarter of 2023, or 10.2% on an annualized basis. Noninterest-bearing deposit accounts represented 29.4% of total deposits at March 31, 2023 and the loan-to-deposit ratio was 101.1% at March 31, 2023. Total uninsured and uncollateralized deposits were approximately 25.5% at March 31, 2023, compared to 41.6% at December 31, 2022. Capital Capital ratios remain strong and above “well-capitalized” thresholds. As of March 31, 2023, our common equity tier 1 risk-based capital ratio was 10.11%, total risk-based capital ratio was 12.19% and tier 1 leverage ratio was 9.86%. Book value per common share was $32.06 at March 31, 2023, an increase of $0.98 from December 31, 2022. Tangible book value per common share, a non-GAAP financial measure, was $27.72 at March 31, 2023, an increase of $1.03 from December 31, 2022. Non-GAAP Financial Measures This press release (including the tables within the “Non-GAAP Financial Measures and Reconciliations” section) contains financial 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 non-GAAP financial measures, however, 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 non-GAAP measures used in this press release: Tangible common stockholders’ equity; Tangible assets; Tangible common stockholders’ equity to tangible assets; Tangible common stockholders’ equity to tangible assets, reflecting net unrealized losses on HTM securities, net of tax; 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; and Fully tax equivalent (“FTE”) net interest income and net interest margin on FTE basis. The tables beginning within the “Non-GAAP Financial Measures and Reconciliations” section provide a reconciliation of each non-GAAP financial measure contained in this press release 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 $7.6 billion as of March 31, 2023. First National 1870 and Guardian Mortgage are divisions of Sunflower Bank, N.A. To learn more, visit ir.firstsuncb.com, SunflowerBank.com, FirstNational1870.com or GuardianMortgageOnline.com. Summary Data: As of and for the quarter ended ($ in thousands, except per share amounts) March 31, 2023 December 31, 2022 March 31, 2022 Net interest income $ 74,117 $ 73,276 $ 41,285 Provision for credit losses 3,360 5,600 3,700 Noninterest income 18,931 18,618 23,693 Noninterest expense 56,266 55,443 52,467 Income before income taxes 33,422 30,851 8,811 Provision for income taxes 7,141 6,281 1,142 Net income 26,281 24,570 7,669 Net income, excluding merger costs (1) 26,281 24,570 7,922 Diluted earnings per share $ 1.03 $ 0.96 $ 0.41 Diluted earnings per share, excluding merger costs (1) $ 1.03 $ 0.96 $ 0.42 Return on average total assets 1.44 % 1.38 % 0.54 % Return on average total assets, excluding merger costs (1) 1.44 % 1.38 % 0.56 % Return on average stockholders' equity 13.37 % 12.89 % 5.85 % Return on average stockholders’ equity, excluding merger costs (1) 13.37 % 12.89 % 6.04 % Net interest margin 4.39 % 4.45 % 3.08 % Net interest margin (FTE basis) (1) 4.46 % 4.52 % 3.17 % Efficiency ratio 60.47 % 60.33 % 80.75 % Efficiency ratio, excluding merger related expenses (1) 60.47 % 60.33 % 80.28 % Fee revenue to total revenue 20.35 % 20.26 % 36.46 % Total assets $ 7,610,456 $ 7,430,322 $ 5,733,748 Total loans held-for-sale 66,255 57,323 57,700 Total loans held-for-investment 6,060,975 5,911,832 4,315,031 Total deposits 5,994,266 5,765,062 4,946,482 Total stockholders' equity 799,050 774,536 515,541 Period end loan-to-deposit ratio 101.11 % 102.55 % 87.23 % Book value per common share $ 32.06 $ 31.08 $ 28.10 Tangible book value per common share (1) $ 27.72 $ 26.69 $ 25.87 (1) Represents a non-GAAP financial measure. See the tables within the “Non-GAAP Financial Measures and Reconciliations” section for a reconciliation of each non-GAAP measure to the most comparable GAAP equivalent. Condensed Consolidated Statements of Income (Unaudited): As of and for the quarter ended ($ in thousands, except per share amounts) March 31, 2023 December 31, 2022 March 31, 2022 Total interest income $ 94,903 $ 85,165 $ 44,661 Total interest expense 20,786 11,889 3,376 Net interest income 74,117 73,276 41,285 Provision for credit losses 3,360 5,600 3,700 Net interest income after provision for credit losses 70,757 67,676 37,585 Noninterest income: Service charges on deposits 5,015 5,100 3,925 Credit and debit card fees 2,981 3,003 2,415 Trust and investment advisory fees 1,461 1,398 1,947 Mortgage banking income, net 7,429 6,268 14,561 Other noninterest income 2,045 2,849 845 Total noninterest income 18,931 18,618 23,693 Noninterest expense: Salaries and benefits 35,049 32,378 34,225 Occupancy and equipment 8,174 7,707 6,833 Amortization of intangible assets 1,044 2,018 327 Merger related expenses — — 303 Other noninterest expenses 11,999 13,340 10,779 Total noninterest expense 56,266 55,443 52,467 Income before income taxes 33,422 30,851 8,811 Provision for income taxes 7,141 6,281 1,142 Net income $ 26,281 $ 24,570 $ 7,669 Earnings per share - basic $ 1.05 $ 0.99 $ 0.42 Earnings per share - diluted $ 1.03 $ 0.96 $ 0.41 Condensed Consolidated Balance Sheets as of (Unaudited): ($ in thousands) March 31, 2023 December 31, 2022 March 31, 2022 Assets Cash and cash equivalents $ 388,349 $ 343,526 $ 487,689 Securities available-for-sale, at fair value 532,650 536,973 556,723 Securities held-to-maturity 38,470 38,901 16,799 Loans held-for-sale, at fair value 66,255 57,323 57,700 Loans 6,060,975 5,911,832 4,315,031 Allowance for credit losses (74,459 ) (65,917 ) (50,509 ) Loans, net 5,986,516 5,845,915 4,264,522 Mortgage servicing rights, at fair value 73,424 74,097 60,481 Premises and equipment, net 86,430 87,079 52,198 Other real estate owned and foreclosed assets, net 6,358 6,358 5,162 Goodwill 93,483 93,483 33,050 Intangible assets, net 14,762 15,806 7,923 All other assets 323,759 330,861 191,501 Total assets $ 7,610,456 $ 7,430,322 $ 5,733,748 Liabilities and Stockholders' Equity Liabilities: Deposits: Noninterest-bearing demand deposit accounts $ 1,764,440 $ 1,820,490 $ 1,662,980 Interest-bearing deposit accounts: Interest-bearing demand accounts 238,658 212,357 155,388 Savings accounts and money market accounts 2,705,315 2,759,969 2,742,393 NOW accounts 45,192 50,224 74,106 Certificate of deposit accounts 1,240,661 922,022 311,615 Total deposits 5,994,266 5,765,062 4,946,482 Securities sold under agreements to repurchase 31,645 36,721 69,627 Federal Home Loan Bank advances 577,285 643,885 40,000 Other borrowings 80,373 80,235 87,799 Other liabilities 127,837 129,883 74,299 Total liabilities 6,811,406 6,655,786 5,218,207 Stockholders' equity: Preferred stock — — — Common stock 2 2 2 Additional paid-in capital 461,174 460,720 262,071 Treasury stock — — (38,148 ) Retained earnings 380,270 357,797 306,284 Accumulated other comprehensive loss, net (42,396 ) (43,983 ) (14,668 ) Total stockholders' equity 799,050 774,536 515,541 Total liabilities and stockholders' equity $ 7,610,456 $ 7,430,322 $ 5,733,748 Share Data as of and for the periods ended: As of and for the quarter ended March 31, 2023 December 31, 2022 March 31, 2022 Weighted average common shares outstanding, basic 24,923,259 24,907,643 18,346,288 Weighted average common shares outstanding, diluted 25,487,582 25,525,026 18,899,852 Period end common shares outstanding 24,924,023 24,920,984 18,346,288 Book value per common share $ 32.06 $ 31.08 $ 28.10 Tangible book value per common share (1) $ 27.72 $ 26.69 $ 25.87 Consolidated Capital Ratios as of: March 31, 2023 December 31, 2022 March 31, 2022 Stockholders' equity to total assets 10.50 % 10.42 % 8.99 % Tangible common stockholders' equity to tangible assets (1) 9.21 % 9.09 % 8.34 % Tangible common stockholders' equity to tangible assets reflecting net unrealized losses on HTM securities, net of tax (1) (2) 9.16 % 9.03 % 8.34 % Tier 1 leverage ratio 9.86 % 9.71 % 8.42 % Common equity tier 1 risk-based capital ratio 10.11 % 9.94 % 9.27 % Tier 1 risk-based capital ratio 10.11 % 9.94 % 9.27 % Total risk-based capital ratio 12.19 % 11.99 % 11.74 % (1) Represents a non-GAAP financial measure. See the tables within the “Non-GAAP Financial Measures and Reconciliations” section for a reconciliation of each non-GAAP measure to the most comparable GAAP equivalent. (2) Tangible common stockholders’ equity and tangible assets have been adjusted to reflect net unrealized losses on held-to-maturity securities, net of tax. Summary of Net Interest Margin: For the quarter ended March 31, 2023 For the quarter ended December 31, 2022 For the quarter ended March 31, 2022 (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 $ 50,129 $ 654 5.22 % $ 51,835 $ 606 4.68 % $ 60,895 $ 694 4.56 % Loans held-for-investment (1) 5,978,860 87,947 5.88 % 5,759,436 78,669 5.46 % 4,123,920 41,164 3.99 % Investment securities 570,682 4,164 2.92 % 573,592 3,933 2.74 % 582,333 2,275 1.56 % Interest-bearing cash and other assets 156,262 2,138 5.47 % 204,964 1,957 3.82 % 592,478 528 0.36 % Total earning assets 6,755,933 94,903 5.62 % 6,589,827 85,165 5.17 % 5,359,626 44,661 3.33 % Other assets 553,961 553,870 314,043 Total assets $ 7,309,894 $ 7,143,697 $ 5,673,669 Interest-bearing liabilities Demand and NOW deposits $ 227,170 $ 1,234 2.17 % $ 213,491 $ 927 1.74 % $ 223,020 $ 124 0.22 % Savings deposits 470,000 445 0.38 % 492,837 348 0.28 % 468,713 91 0.08 % Money market deposits 2,296,469 5,068 0.88 % 2,412,289 3,126 0.52 % 2,306,638 840 0.15 % Certificates of deposits 1,073,006 7,432 2.77 % 647,819 1,733 1.07 % 317,948 519 0.65 % Total deposits 4,066,645 14,179 1.39 % 3,766,436 6,134 0.65 % 3,316,319 1,574 0.19 % Repurchase agreements 29,672 30 0.41 % 38,795 45 0.46 % 71,425 8 0.04 % Total deposits and repurchase agreements 4,096,317 14,209 1.39 % 3,805,231 6,179 0.65 % 3,387,744 1,582 0.19 % FHLB borrowings 454,081 5,317 4.68 % 471,880 4,477 3.80 % 40,229 148 1.48 % Other long-term borrowings 80,300 1,260 6.28 % 80,162 1,233 6.15 % 86,191 1,646 7.63 % Total interest-bearing liabilities 4,630,698 20,786 1.80 % 4,357,273 11,889 1.09 % 3,514,164 3,376 0.38 % Noninterest-bearing deposits 1,768,381 1,923,401 1,566,088 Other liabilities 124,543 100,671 68,999 Stockholders' equity 786,272 762,352 524,418 Total liabilities and stockholders' equity $ 7,309,894 $ 7,143,697 $ 5,673,669 Net interest income $ 74,117 $ 73,276 $ 41,285 Net interest spread 3.82 % 4.08 % 2.95 % Net interest margin 4.39 % 4.45 % 3.08 % Net interest margin (on FTE basis) (2) 4.46 % 4.52 % 3.17 % (1) Includes nonaccrual loans. (2) Represents a non-GAAP financial measure. See the tables within the “Non-GAAP Financial Measures and Reconciliations” section for a reconciliation of each non-GAAP measure to the most comparable GAAP equivalent. Deposits: ($ in thousands) March 31, 2023 December 31, 2022 March 31, 2023 vs December 31, 2022 % change March 31, 2022 March 31, 2023 vs March 31, 2022 % change Consumer Noninterest bearing deposit accounts $ 399,008 $ 416,709 (4.25 ) % $ 361,475 10.38 % Interest-bearing deposit accounts: Demand and NOW deposits 25,284 25,940 (2.53 ) % 28,083 (9.97 ) % Savings deposits 407,173 418,101 (2.61 ) % 421,397 (3.38 ) % Money market deposits 1,296,099 1,375,671 (5.78 ) % 1,463,495 (11.44 ) % Certificates of deposits 759,726 662,831 14.62 % 291,105 160.98 % Total interest-bearing deposit accounts 2,488,282 2,482,543 0.23 % 2,204,080 12.89 % Total consumer deposits $ 2,887,290 $ 2,899,252 (0.41 ) % $ 2,565,555 12.54 % Business Noninterest bearing deposit accounts $ 1,365,432 $ 1,403,781 (2.73 ) % $ 1,301,505 4.91 % Interest-bearing deposit accounts: Demand and NOW deposits 258,566 236,641 9.27 % 201,411 28.38 % Savings deposits 59,308 58,818 0.83 % 54,438 8.95 % Money market deposits 942,735 907,379 3.90 % 803,063 17.39 % Certificates of deposits 480,935 259,191 85.55 % 20,510 2244.88 % Total interest-bearing deposit accounts 1,741,544 1,462,029 19.12 % 1,079,422 61.34 % Total business customer deposits $ 3,106,976 $ 2,865,810 8.42 % $ 2,380,927 30.49 % Total deposits $ 5,994,266 $ 5,765,062 3.98 % $ 4,946,482 21.18 % Balance Sheet Ratios: March 31, 2023 December 31, 2022 March 31, 2022 Cash to total assets (1) 4.6 % 4.1 % 7.10 % Loan to deposit ratio 101.11 % 102.55 % 87.23 % Uninsured and uncollateralized deposits to total deposits (2) 25.5 % 41.6 % 51.3 % Wholesale borrowings to total liabilities (3) 8.48 % 9.67 % 0.77 % Tangible common stockholders' equity to tangible assets (4) 9.21 % 9.09 % 8.34 % Tangible common stockholders' equity to tangible assets, reflecting net unrealized losses on HTM securities, net of tax (4) (5) 9.16 % 9.03 % 8.34 % (1) Cash consists of cash and amounts due from banks and interest-bearing deposits in other financial institutions. (2) Uninsured and uncollateralized deposits are estimated. (3) Wholesale borrowings consists of FHLB overnight borrowings and term advances. (4) Represents a non-GAAP financial measure. See the tables within the “Non-GAAP Financial Measures and Reconciliations” section for a reconciliation of each non-GAAP measure to the most comparable GAAP equivalent. (5) Tangible common stockholders’ equity and tangible assets have been adjusted to reflect net unrealized losses on held-to-maturity securities, net of tax. Loan Portfolio: ($ in thousands) March 31, 2023 December 31, 2022 March 31, 2023 vs December 31, 2022 % change March 31, 2022 March 31, 2023 vs March 31, 2022 % change Commercial and industrial $ 2,418,771 $ 2,310,929 4.7 % $ 1,819,705 32.9 % Commercial real estate: Non-owner occupied 709,977 779,546 (8.9 ) % 624,729 13.6 % Owner occupied 659,999 636,272 3.7 % 445,654 48.1 % Construction and land 320,193 327,817 (2.3 ) % 144,122 122.2 % Multifamily 103,767 102,068 1.7 % 66,112 57.0 % Total commercial real estate 1,793,936 1,845,703 (2.8 ) % 1,280,617 40.1 % Residential real estate 1,046,047 1,003,931 4.2 % 501,230 108.7 % Public Finance 597,850 590,284 1.3 % 624,187 (4.2 ) % Consumer 40,806 42,588 (4.2 ) % 17,981 126.9 % Other 163,565 118,397 38.1 % 71,311 129.4 % Total loans, net of deferred costs, fees, premiums, and discounts $ 6,060,975 $ 5,911,832 2.5 % $ 4,315,031 40.5 % Asset Quality: As of and for the quarter ended ($ in thousands) March 31, 2023 December 31, 2022 March 31, 2022 Net charge-offs (recoveries) $ 54 $ (639 ) $ 738 Allowance for credit losses $ 74,459 $ 65,917 $ 50,509 Nonperforming loans, including nonaccrual loans, and accrual loans greater than 90 days past due (1) $ 32,833 $ 29,067 $ 25,365 Nonperforming assets $ 39,191 $ 35,425 $ 30,527 Ratio of net charge-offs (recoveries) to average loans outstanding — % (0.04 ) % 0.07 % Allowance for credit losses to total loans outstanding 1.23 % 1.12 % 1.17 % Allowance for credit losses to total nonperforming loans 226.78 % 226.78 % 199.13 % Nonperforming loans to total loans 0.54 % 0.49 % 0.59 % Nonperforming assets to total assets 0.51 % 0.48 % 0.53 % (1) On January 1, 2023, we adopted ASU 2022-02, whereby we no longer recognize or account for TDRs. The loans previously classified as accrual TDRs are no longer considered nonperforming. We have adjusted prior periods to reflect this change in accounting. Non-GAAP Financial Measures and Reconciliations: As of and for the quarter ended ($ in thousands, except share and per share amounts) March 31, 2023 December 31, 2022 March 31, 2022 Tangible common stockholders’ equity: Total common stockholders' equity (GAAP) $ 799,050 $ 774,536 $ 515,541 Less: Goodwill and other intangible assets: Goodwill (93,483 ) (93,483 ) (33,050 ) Other intangible assets (14,762 ) (15,806 ) (7,923 ) Total tangible common stockholders' equity (non-GAAP) (1) $ 690,805 $ 665,247 $ 474,568 Tangible assets: Total assets (GAAP) $ 7,610,456 $ 7,430,322 $ 5,733,748 Less: Goodwill and other intangible assets: Goodwill (93,483 ) (93,483 ) (33,050 ) Other intangible assets (14,762 ) (15,806 ) (7,923 ) Total tangible assets (non-GAAP) $ 7,502,211 $ 7,321,033 $ 5,692,775 Tangible common stockholders’ equity to tangible assets: Common stockholders' equity to total assets (GAAP) 10.50 % 10.42 % 8.99 % Less: Impact of goodwill and other intangible assets (1.29 ) % (1.33 ) % (0.65 ) % Tangible common stockholders' equity to tangible assets (non-GAAP) (1) 9.21 % 9.09 % 8.34 % Tangible common stockholders’ equity to tangible assets, reflecting net unrealized losses on HTM securities, net of tax: Total tangible common stockholders' equity (non-GAAP) $ 690,805 $ 665,247 $ 474,568 Less: Net unrealized losses on HTM securities, net of tax (3,754 ) (4,295 ) (79 ) Total tangible common stockholders’ equity less net unrealized losses on HTM securities, net of tax (non-GAAP) $ 687,051 $ 660,952 $ 474,489 Total tangible assets (non-GAAP) $ 7,502,211 $ 7,321,033 $ 5,692,775 Less: Net unrealized losses on HTM securities, net of tax (3,754 ) (4,295 ) (79 ) Total tangible assets less net unrealized losses on HTM securities, net of tax (non-GAAP) $ 7,498,457 $ 7,316,738 $ 5,692,696 Tangible common stockholders’ equity to tangible assets (non-GAAP) 9.21 % 9.09 % 8.34 % Less: Net unrealized losses on HTM securities, net of tax 0.05 % 0.06 % — % Tangible common stockholders’ equity to tangible assets reflecting net unrealized losses on HTM securities, net of tax (non-GAAP) 9.16 % 9.03 % 8.34 % Tangible book value per common share: Stockholders' equity (GAAP) $ 799,050 $ 774,536 $ 515,541 Tangible stockholders' equity (non-GAAP) (1) $ 690,805 $ 665,247 $ 474,568 Total common shares outstanding 24,924,023 24,920,984 18,346,288 Book value per common share (GAAP) $ 32.06 $ 31.08 $ 28.10 Tangible book value per common share (non-GAAP) $ 27.72 $ 26.69 $ 25.87 Net income excluding merger costs: Net income (GAAP) $ 26,281 $ 24,570 $ 7,669 Add: Merger costs Merger related expenses — — 303 Income tax effect on merger related expenses — — (50 ) Total merger costs — — 253 Net income excluding merger costs (non-GAAP) $ 26,281 $ 24,570 $ 7,922 Return on average total assets excluding merger costs: Return on average total assets (ROAA) (GAAP) 1.44 % 1.38 % 0.54 % Add: Impact of merger costs, net of tax — % — % 0.02 % ROAA excluding merger costs (non-GAAP) 1.44 % 1.38 % 0.56 % (1) For all periods presented tangible stockholders’ equity is the same as tangible common stockholders’ equity. Return on average stockholders’ equity excluding merger costs: Return on average stockholders' equity (ROAE) (GAAP) 13.37 % 12.89 % 5.85 % Add: Impact of merger costs, net of tax — % — % 0.19 % ROAE excluding merger costs (non-GAAP) 13.37 % 12.89 % 6.04 % Efficiency ratio excluding merger related expenses: Efficiency ratio (GAAP) 60.47 % 60.33 % 80.75 % Less: Impact of merger related expenses — % — % 0.47 % Efficiency ratio excluding merger related expenses (non-GAAP) 60.47 % 60.33 % 80.28 % Diluted earnings per share excluding merger costs: Diluted earnings per share (GAAP) $ 1.03 $ 0.96 $ 0.41 Add: Impact of merger costs, net of tax — — 0.01 Diluted earnings per share excluding merger costs (non-GAAP) $ 1.03 $ 0.96 $ 0.42 Fully tax equivalent (“FTE”) net interest income and net interest margin on FTE basis: Net interest income (GAAP) $ 74,117 $ 73,276 $ 41,285 Gross income effect of tax exempt income 1,242 1,218 1,321 FTE net interest income (non-GAAP) $ 75,359 $ 74,494 $ 42,606 Average earning assets $ 6,755,933 $ 6,589,827 $ 5,359,626 Net interest margin 4.39 % 4.45 % 3.08 % Net interest margin on FTE basis (non-GAAP) 4.46 % 4.52 % 3.17 % View source version on businesswire.com: https://www.businesswire.com/news/home/20230428005390/en/Contacts Investor Relations: Kelly C. Rackley Corporate Secretary & Stockholder Relations Manager 303.962.0150 | stockholder.relations@sunflowerbank.com Media Relations: Jeanne Lipson Vice President, Marketing 915.881.6785 Data & News supplied by www.cloudquote.io Stock quotes supplied by Barchart Quotes delayed at least 20 minutes. By accessing this page, you agree to the following Privacy Policy and Terms and Conditions.
FirstSun Capital Bancorp Reports First Quarter 2023 Results By: FirstSun Capital Bancorp via Business Wire May 01, 2023 at 08:00 AM EDT First Quarter 2023 Highlights: Net income of $26.3 million, $1.03 per diluted share Net interest margin of 4.39% Return on average total assets of 1.44% Return on average stockholders’ equity of 13.37% Loan growth of 10.1% annualized 20.3% fee revenue to total revenue FirstSun Capital Bancorp (“FirstSun”) (OTCQX: FSUN) reported net income of $26.3 million for the first quarter of 2023 compared to net income of $7.7 million for the first quarter of 2022. Earnings per diluted share were $1.03 for the first quarter of 2023 compared to $0.41 for the first quarter of 2022. Earnings for the first quarter of 2022 were impacted by $0.3 million of merger costs, net of tax, or $0.01 per diluted share. Neal Arnold, FirstSun’s President and Chief Executive Officer, commented, “We are very pleased with our strong operating results this quarter amidst a more challenging banking environment. Highlights this quarter include net interest margin of 4.39%, steady loan growth, deposit stability and continued credit quality strength. Our industry has recently been reminded of the benefits of a well-diversified and balanced business mix as well as the importance of asset/liability management. We believe our diversified business model with its emphasis across our commercial and industrial business and consumer clients, our balanced mix of spread and service-based revenues, our geographic diversity, along with our disciplined and conservative balance sheet management provides a stable platform for responsible growth and favorable performance even in difficult times. Additionally, we believe our strong capital base, our granular and stable deposit base, our securities portfolio positioning and our overall asset sensitive profile provides us with flexibility as the competition for deposits increases in this environment.” First Quarter 2023 Results Net income totaled $26.3 million, or $1.03 per diluted share, during the first quarter of 2023, compared to $24.6 million, or $0.96 per diluted share, during the prior quarter. The return on average total assets was 1.44% in the first quarter of 2023, compared to 1.38% in the prior quarter, and the return on average stockholders’ equity was 13.37% in the first quarter of 2023, compared to 12.89% in the prior quarter. Net Interest Income and Net Interest Margin Net interest income totaled $74.1 million during the first quarter of 2023, an increase of $0.8 million compared to the prior quarter. Our net interest margin decreased 6 basis points to 4.39% compared to the prior quarter. Results in the first quarter of 2023, compared to the prior quarter, were driven by an increase of 45 basis points in yield on earning assets, offset by an increase of 71 basis points in the cost of interest-bearing liabilities. Average loans increased by $0.2 billion in the first quarter of 2023, compared to the prior quarter. Loan yield increased by 42 basis points to 5.88% in the first quarter of 2023, compared to the prior quarter, primarily due to the rising interest rate environment and its impact on variable rate loans in the loan portfolio and higher yields on new originations. Average interest-bearing deposits increased $0.3 billion in the first quarter of 2023, compared to the prior quarter. Total cost of deposits increased by 74 basis points to 1.39% in the first quarter of 2023, compared to the prior quarter, primarily due to an increase in deposit pricing as a result of the rising interest rate environment. Average FHLB borrowings decreased $17.8 million in the first quarter of 2023, compared to the prior quarter. The cost of FHLB borrowings increased by 88 basis points to 4.68% in the first quarter of 2023, compared to the prior quarter, primarily due to the rising interest rate environment. Asset Quality and Provision for Credit Losses The provision for credit losses totaled $3.4 million during the first quarter of 2023, a decrease of $2.2 million from the $5.6 million in the prior quarter, primarily due to slower loan growth and generally neutral macroeconomic indicators relative to the prior quarter. Net charge-offs during the first quarter of 2023 were $0.1 million, resulting in a negligible ratio of net charge-offs to average loans annualized, compared to net charge-offs (recoveries) of $(0.6) million, or a ratio of net charge-offs (recoveries) to average loans of (0.04)% annualized, in the prior quarter. The allowance for credit losses as a percentage of total loans was 1.23% at March 31, 2023, or an increase of 11 basis points from the prior quarter. On January 1, 2023, we adopted ASU 2016-13, Financial Instruments - Credit Losses (Topic 326), which increased our allowance for credit losses as a percentage of total loans to 1.20% at adoption, or an eight basis point increase from 1.12% at December 31, 2022. The increase in our allowance for credit losses was a result of changing from an “incurred loss” model, which encompasses allowances for current known and incurred losses within the portfolio, to an “expected loss” model, which encompasses allowances for losses expected to be recognized over the life of the portfolio. The ratio of nonperforming assets to total assets was 0.51% at March 31, 2023, compared to 0.48% at December 31, 2022. Noninterest Income Noninterest income totaled $18.9 million during the first quarter of 2023, an increase of $0.3 million from the prior quarter. Mortgage banking income increased $1.2 million during the first quarter of 2023, primarily due to an increase in fair value of our interest rate lock commitments from the prior quarter. Total originations of mortgage loans held-for-sale increased by $9.9 million, or 5.3%, in the first quarter of 2023 from the prior quarter. Other noninterest income decreased $0.8 million during the first quarter of 2023, primarily due to a decrease in loan syndication fees and customer accommodation swap fees. Noninterest income as a percentage of total revenue totaled 20.3%, which is unchanged from the prior quarter. Noninterest Expense Noninterest expense totaled $56.3 million during the first quarter of 2023, an increase of $0.8 million from the prior quarter. Salaries and employee benefits increased $2.7 million from the prior quarter primarily due to higher benefit costs generally incurred in the first quarter of each year. Occupancy and equipment expenses increased $0.5 million from the prior quarter primarily due to the impact of adoption in the prior quarter of ASU 2016-02, Leases. Amortization of intangible assets decreased $1.0 million from the prior quarter. Other noninterest expenses decreased $1.3 million from the prior quarter primarily due to data processing and loan appraisal, servicing, and collection expenses as we experienced a lesser level of transaction volume in the first quarter of 2023. The efficiency ratio for the first quarter of 2023 was 60.47% compared to 60.33% in the prior quarter. Tax Rate The effective tax rate was 21.4% in the first quarter of 2023, compared to 20.4% in the prior quarter. Loans Total loans were $6.1 billion at March 31, 2023, compared to $5.9 billion at December 31, 2022, an increase of $149.1 million in the first quarter of 2023, or 10.1% on an annualized basis, resulting primarily from growth in commercial and industrial and residential real estate balances. Deposits Average deposits were $5.8 billion for the first quarter of 2023, compared to $5.7 billion for the prior quarter, an increase of $0.1 billion in the first quarter of 2023, or 10.2% on an annualized basis. Noninterest-bearing deposit accounts represented 29.4% of total deposits at March 31, 2023 and the loan-to-deposit ratio was 101.1% at March 31, 2023. Total uninsured and uncollateralized deposits were approximately 25.5% at March 31, 2023, compared to 41.6% at December 31, 2022. Capital Capital ratios remain strong and above “well-capitalized” thresholds. As of March 31, 2023, our common equity tier 1 risk-based capital ratio was 10.11%, total risk-based capital ratio was 12.19% and tier 1 leverage ratio was 9.86%. Book value per common share was $32.06 at March 31, 2023, an increase of $0.98 from December 31, 2022. Tangible book value per common share, a non-GAAP financial measure, was $27.72 at March 31, 2023, an increase of $1.03 from December 31, 2022. Non-GAAP Financial Measures This press release (including the tables within the “Non-GAAP Financial Measures and Reconciliations” section) contains financial 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 non-GAAP financial measures, however, 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 non-GAAP measures used in this press release: Tangible common stockholders’ equity; Tangible assets; Tangible common stockholders’ equity to tangible assets; Tangible common stockholders’ equity to tangible assets, reflecting net unrealized losses on HTM securities, net of tax; 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; and Fully tax equivalent (“FTE”) net interest income and net interest margin on FTE basis. The tables beginning within the “Non-GAAP Financial Measures and Reconciliations” section provide a reconciliation of each non-GAAP financial measure contained in this press release 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 $7.6 billion as of March 31, 2023. First National 1870 and Guardian Mortgage are divisions of Sunflower Bank, N.A. To learn more, visit ir.firstsuncb.com, SunflowerBank.com, FirstNational1870.com or GuardianMortgageOnline.com. Summary Data: As of and for the quarter ended ($ in thousands, except per share amounts) March 31, 2023 December 31, 2022 March 31, 2022 Net interest income $ 74,117 $ 73,276 $ 41,285 Provision for credit losses 3,360 5,600 3,700 Noninterest income 18,931 18,618 23,693 Noninterest expense 56,266 55,443 52,467 Income before income taxes 33,422 30,851 8,811 Provision for income taxes 7,141 6,281 1,142 Net income 26,281 24,570 7,669 Net income, excluding merger costs (1) 26,281 24,570 7,922 Diluted earnings per share $ 1.03 $ 0.96 $ 0.41 Diluted earnings per share, excluding merger costs (1) $ 1.03 $ 0.96 $ 0.42 Return on average total assets 1.44 % 1.38 % 0.54 % Return on average total assets, excluding merger costs (1) 1.44 % 1.38 % 0.56 % Return on average stockholders' equity 13.37 % 12.89 % 5.85 % Return on average stockholders’ equity, excluding merger costs (1) 13.37 % 12.89 % 6.04 % Net interest margin 4.39 % 4.45 % 3.08 % Net interest margin (FTE basis) (1) 4.46 % 4.52 % 3.17 % Efficiency ratio 60.47 % 60.33 % 80.75 % Efficiency ratio, excluding merger related expenses (1) 60.47 % 60.33 % 80.28 % Fee revenue to total revenue 20.35 % 20.26 % 36.46 % Total assets $ 7,610,456 $ 7,430,322 $ 5,733,748 Total loans held-for-sale 66,255 57,323 57,700 Total loans held-for-investment 6,060,975 5,911,832 4,315,031 Total deposits 5,994,266 5,765,062 4,946,482 Total stockholders' equity 799,050 774,536 515,541 Period end loan-to-deposit ratio 101.11 % 102.55 % 87.23 % Book value per common share $ 32.06 $ 31.08 $ 28.10 Tangible book value per common share (1) $ 27.72 $ 26.69 $ 25.87 (1) Represents a non-GAAP financial measure. See the tables within the “Non-GAAP Financial Measures and Reconciliations” section for a reconciliation of each non-GAAP measure to the most comparable GAAP equivalent. Condensed Consolidated Statements of Income (Unaudited): As of and for the quarter ended ($ in thousands, except per share amounts) March 31, 2023 December 31, 2022 March 31, 2022 Total interest income $ 94,903 $ 85,165 $ 44,661 Total interest expense 20,786 11,889 3,376 Net interest income 74,117 73,276 41,285 Provision for credit losses 3,360 5,600 3,700 Net interest income after provision for credit losses 70,757 67,676 37,585 Noninterest income: Service charges on deposits 5,015 5,100 3,925 Credit and debit card fees 2,981 3,003 2,415 Trust and investment advisory fees 1,461 1,398 1,947 Mortgage banking income, net 7,429 6,268 14,561 Other noninterest income 2,045 2,849 845 Total noninterest income 18,931 18,618 23,693 Noninterest expense: Salaries and benefits 35,049 32,378 34,225 Occupancy and equipment 8,174 7,707 6,833 Amortization of intangible assets 1,044 2,018 327 Merger related expenses — — 303 Other noninterest expenses 11,999 13,340 10,779 Total noninterest expense 56,266 55,443 52,467 Income before income taxes 33,422 30,851 8,811 Provision for income taxes 7,141 6,281 1,142 Net income $ 26,281 $ 24,570 $ 7,669 Earnings per share - basic $ 1.05 $ 0.99 $ 0.42 Earnings per share - diluted $ 1.03 $ 0.96 $ 0.41 Condensed Consolidated Balance Sheets as of (Unaudited): ($ in thousands) March 31, 2023 December 31, 2022 March 31, 2022 Assets Cash and cash equivalents $ 388,349 $ 343,526 $ 487,689 Securities available-for-sale, at fair value 532,650 536,973 556,723 Securities held-to-maturity 38,470 38,901 16,799 Loans held-for-sale, at fair value 66,255 57,323 57,700 Loans 6,060,975 5,911,832 4,315,031 Allowance for credit losses (74,459 ) (65,917 ) (50,509 ) Loans, net 5,986,516 5,845,915 4,264,522 Mortgage servicing rights, at fair value 73,424 74,097 60,481 Premises and equipment, net 86,430 87,079 52,198 Other real estate owned and foreclosed assets, net 6,358 6,358 5,162 Goodwill 93,483 93,483 33,050 Intangible assets, net 14,762 15,806 7,923 All other assets 323,759 330,861 191,501 Total assets $ 7,610,456 $ 7,430,322 $ 5,733,748 Liabilities and Stockholders' Equity Liabilities: Deposits: Noninterest-bearing demand deposit accounts $ 1,764,440 $ 1,820,490 $ 1,662,980 Interest-bearing deposit accounts: Interest-bearing demand accounts 238,658 212,357 155,388 Savings accounts and money market accounts 2,705,315 2,759,969 2,742,393 NOW accounts 45,192 50,224 74,106 Certificate of deposit accounts 1,240,661 922,022 311,615 Total deposits 5,994,266 5,765,062 4,946,482 Securities sold under agreements to repurchase 31,645 36,721 69,627 Federal Home Loan Bank advances 577,285 643,885 40,000 Other borrowings 80,373 80,235 87,799 Other liabilities 127,837 129,883 74,299 Total liabilities 6,811,406 6,655,786 5,218,207 Stockholders' equity: Preferred stock — — — Common stock 2 2 2 Additional paid-in capital 461,174 460,720 262,071 Treasury stock — — (38,148 ) Retained earnings 380,270 357,797 306,284 Accumulated other comprehensive loss, net (42,396 ) (43,983 ) (14,668 ) Total stockholders' equity 799,050 774,536 515,541 Total liabilities and stockholders' equity $ 7,610,456 $ 7,430,322 $ 5,733,748 Share Data as of and for the periods ended: As of and for the quarter ended March 31, 2023 December 31, 2022 March 31, 2022 Weighted average common shares outstanding, basic 24,923,259 24,907,643 18,346,288 Weighted average common shares outstanding, diluted 25,487,582 25,525,026 18,899,852 Period end common shares outstanding 24,924,023 24,920,984 18,346,288 Book value per common share $ 32.06 $ 31.08 $ 28.10 Tangible book value per common share (1) $ 27.72 $ 26.69 $ 25.87 Consolidated Capital Ratios as of: March 31, 2023 December 31, 2022 March 31, 2022 Stockholders' equity to total assets 10.50 % 10.42 % 8.99 % Tangible common stockholders' equity to tangible assets (1) 9.21 % 9.09 % 8.34 % Tangible common stockholders' equity to tangible assets reflecting net unrealized losses on HTM securities, net of tax (1) (2) 9.16 % 9.03 % 8.34 % Tier 1 leverage ratio 9.86 % 9.71 % 8.42 % Common equity tier 1 risk-based capital ratio 10.11 % 9.94 % 9.27 % Tier 1 risk-based capital ratio 10.11 % 9.94 % 9.27 % Total risk-based capital ratio 12.19 % 11.99 % 11.74 % (1) Represents a non-GAAP financial measure. See the tables within the “Non-GAAP Financial Measures and Reconciliations” section for a reconciliation of each non-GAAP measure to the most comparable GAAP equivalent. (2) Tangible common stockholders’ equity and tangible assets have been adjusted to reflect net unrealized losses on held-to-maturity securities, net of tax. Summary of Net Interest Margin: For the quarter ended March 31, 2023 For the quarter ended December 31, 2022 For the quarter ended March 31, 2022 (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 $ 50,129 $ 654 5.22 % $ 51,835 $ 606 4.68 % $ 60,895 $ 694 4.56 % Loans held-for-investment (1) 5,978,860 87,947 5.88 % 5,759,436 78,669 5.46 % 4,123,920 41,164 3.99 % Investment securities 570,682 4,164 2.92 % 573,592 3,933 2.74 % 582,333 2,275 1.56 % Interest-bearing cash and other assets 156,262 2,138 5.47 % 204,964 1,957 3.82 % 592,478 528 0.36 % Total earning assets 6,755,933 94,903 5.62 % 6,589,827 85,165 5.17 % 5,359,626 44,661 3.33 % Other assets 553,961 553,870 314,043 Total assets $ 7,309,894 $ 7,143,697 $ 5,673,669 Interest-bearing liabilities Demand and NOW deposits $ 227,170 $ 1,234 2.17 % $ 213,491 $ 927 1.74 % $ 223,020 $ 124 0.22 % Savings deposits 470,000 445 0.38 % 492,837 348 0.28 % 468,713 91 0.08 % Money market deposits 2,296,469 5,068 0.88 % 2,412,289 3,126 0.52 % 2,306,638 840 0.15 % Certificates of deposits 1,073,006 7,432 2.77 % 647,819 1,733 1.07 % 317,948 519 0.65 % Total deposits 4,066,645 14,179 1.39 % 3,766,436 6,134 0.65 % 3,316,319 1,574 0.19 % Repurchase agreements 29,672 30 0.41 % 38,795 45 0.46 % 71,425 8 0.04 % Total deposits and repurchase agreements 4,096,317 14,209 1.39 % 3,805,231 6,179 0.65 % 3,387,744 1,582 0.19 % FHLB borrowings 454,081 5,317 4.68 % 471,880 4,477 3.80 % 40,229 148 1.48 % Other long-term borrowings 80,300 1,260 6.28 % 80,162 1,233 6.15 % 86,191 1,646 7.63 % Total interest-bearing liabilities 4,630,698 20,786 1.80 % 4,357,273 11,889 1.09 % 3,514,164 3,376 0.38 % Noninterest-bearing deposits 1,768,381 1,923,401 1,566,088 Other liabilities 124,543 100,671 68,999 Stockholders' equity 786,272 762,352 524,418 Total liabilities and stockholders' equity $ 7,309,894 $ 7,143,697 $ 5,673,669 Net interest income $ 74,117 $ 73,276 $ 41,285 Net interest spread 3.82 % 4.08 % 2.95 % Net interest margin 4.39 % 4.45 % 3.08 % Net interest margin (on FTE basis) (2) 4.46 % 4.52 % 3.17 % (1) Includes nonaccrual loans. (2) Represents a non-GAAP financial measure. See the tables within the “Non-GAAP Financial Measures and Reconciliations” section for a reconciliation of each non-GAAP measure to the most comparable GAAP equivalent. Deposits: ($ in thousands) March 31, 2023 December 31, 2022 March 31, 2023 vs December 31, 2022 % change March 31, 2022 March 31, 2023 vs March 31, 2022 % change Consumer Noninterest bearing deposit accounts $ 399,008 $ 416,709 (4.25 ) % $ 361,475 10.38 % Interest-bearing deposit accounts: Demand and NOW deposits 25,284 25,940 (2.53 ) % 28,083 (9.97 ) % Savings deposits 407,173 418,101 (2.61 ) % 421,397 (3.38 ) % Money market deposits 1,296,099 1,375,671 (5.78 ) % 1,463,495 (11.44 ) % Certificates of deposits 759,726 662,831 14.62 % 291,105 160.98 % Total interest-bearing deposit accounts 2,488,282 2,482,543 0.23 % 2,204,080 12.89 % Total consumer deposits $ 2,887,290 $ 2,899,252 (0.41 ) % $ 2,565,555 12.54 % Business Noninterest bearing deposit accounts $ 1,365,432 $ 1,403,781 (2.73 ) % $ 1,301,505 4.91 % Interest-bearing deposit accounts: Demand and NOW deposits 258,566 236,641 9.27 % 201,411 28.38 % Savings deposits 59,308 58,818 0.83 % 54,438 8.95 % Money market deposits 942,735 907,379 3.90 % 803,063 17.39 % Certificates of deposits 480,935 259,191 85.55 % 20,510 2244.88 % Total interest-bearing deposit accounts 1,741,544 1,462,029 19.12 % 1,079,422 61.34 % Total business customer deposits $ 3,106,976 $ 2,865,810 8.42 % $ 2,380,927 30.49 % Total deposits $ 5,994,266 $ 5,765,062 3.98 % $ 4,946,482 21.18 % Balance Sheet Ratios: March 31, 2023 December 31, 2022 March 31, 2022 Cash to total assets (1) 4.6 % 4.1 % 7.10 % Loan to deposit ratio 101.11 % 102.55 % 87.23 % Uninsured and uncollateralized deposits to total deposits (2) 25.5 % 41.6 % 51.3 % Wholesale borrowings to total liabilities (3) 8.48 % 9.67 % 0.77 % Tangible common stockholders' equity to tangible assets (4) 9.21 % 9.09 % 8.34 % Tangible common stockholders' equity to tangible assets, reflecting net unrealized losses on HTM securities, net of tax (4) (5) 9.16 % 9.03 % 8.34 % (1) Cash consists of cash and amounts due from banks and interest-bearing deposits in other financial institutions. (2) Uninsured and uncollateralized deposits are estimated. (3) Wholesale borrowings consists of FHLB overnight borrowings and term advances. (4) Represents a non-GAAP financial measure. See the tables within the “Non-GAAP Financial Measures and Reconciliations” section for a reconciliation of each non-GAAP measure to the most comparable GAAP equivalent. (5) Tangible common stockholders’ equity and tangible assets have been adjusted to reflect net unrealized losses on held-to-maturity securities, net of tax. Loan Portfolio: ($ in thousands) March 31, 2023 December 31, 2022 March 31, 2023 vs December 31, 2022 % change March 31, 2022 March 31, 2023 vs March 31, 2022 % change Commercial and industrial $ 2,418,771 $ 2,310,929 4.7 % $ 1,819,705 32.9 % Commercial real estate: Non-owner occupied 709,977 779,546 (8.9 ) % 624,729 13.6 % Owner occupied 659,999 636,272 3.7 % 445,654 48.1 % Construction and land 320,193 327,817 (2.3 ) % 144,122 122.2 % Multifamily 103,767 102,068 1.7 % 66,112 57.0 % Total commercial real estate 1,793,936 1,845,703 (2.8 ) % 1,280,617 40.1 % Residential real estate 1,046,047 1,003,931 4.2 % 501,230 108.7 % Public Finance 597,850 590,284 1.3 % 624,187 (4.2 ) % Consumer 40,806 42,588 (4.2 ) % 17,981 126.9 % Other 163,565 118,397 38.1 % 71,311 129.4 % Total loans, net of deferred costs, fees, premiums, and discounts $ 6,060,975 $ 5,911,832 2.5 % $ 4,315,031 40.5 % Asset Quality: As of and for the quarter ended ($ in thousands) March 31, 2023 December 31, 2022 March 31, 2022 Net charge-offs (recoveries) $ 54 $ (639 ) $ 738 Allowance for credit losses $ 74,459 $ 65,917 $ 50,509 Nonperforming loans, including nonaccrual loans, and accrual loans greater than 90 days past due (1) $ 32,833 $ 29,067 $ 25,365 Nonperforming assets $ 39,191 $ 35,425 $ 30,527 Ratio of net charge-offs (recoveries) to average loans outstanding — % (0.04 ) % 0.07 % Allowance for credit losses to total loans outstanding 1.23 % 1.12 % 1.17 % Allowance for credit losses to total nonperforming loans 226.78 % 226.78 % 199.13 % Nonperforming loans to total loans 0.54 % 0.49 % 0.59 % Nonperforming assets to total assets 0.51 % 0.48 % 0.53 % (1) On January 1, 2023, we adopted ASU 2022-02, whereby we no longer recognize or account for TDRs. The loans previously classified as accrual TDRs are no longer considered nonperforming. We have adjusted prior periods to reflect this change in accounting. Non-GAAP Financial Measures and Reconciliations: As of and for the quarter ended ($ in thousands, except share and per share amounts) March 31, 2023 December 31, 2022 March 31, 2022 Tangible common stockholders’ equity: Total common stockholders' equity (GAAP) $ 799,050 $ 774,536 $ 515,541 Less: Goodwill and other intangible assets: Goodwill (93,483 ) (93,483 ) (33,050 ) Other intangible assets (14,762 ) (15,806 ) (7,923 ) Total tangible common stockholders' equity (non-GAAP) (1) $ 690,805 $ 665,247 $ 474,568 Tangible assets: Total assets (GAAP) $ 7,610,456 $ 7,430,322 $ 5,733,748 Less: Goodwill and other intangible assets: Goodwill (93,483 ) (93,483 ) (33,050 ) Other intangible assets (14,762 ) (15,806 ) (7,923 ) Total tangible assets (non-GAAP) $ 7,502,211 $ 7,321,033 $ 5,692,775 Tangible common stockholders’ equity to tangible assets: Common stockholders' equity to total assets (GAAP) 10.50 % 10.42 % 8.99 % Less: Impact of goodwill and other intangible assets (1.29 ) % (1.33 ) % (0.65 ) % Tangible common stockholders' equity to tangible assets (non-GAAP) (1) 9.21 % 9.09 % 8.34 % Tangible common stockholders’ equity to tangible assets, reflecting net unrealized losses on HTM securities, net of tax: Total tangible common stockholders' equity (non-GAAP) $ 690,805 $ 665,247 $ 474,568 Less: Net unrealized losses on HTM securities, net of tax (3,754 ) (4,295 ) (79 ) Total tangible common stockholders’ equity less net unrealized losses on HTM securities, net of tax (non-GAAP) $ 687,051 $ 660,952 $ 474,489 Total tangible assets (non-GAAP) $ 7,502,211 $ 7,321,033 $ 5,692,775 Less: Net unrealized losses on HTM securities, net of tax (3,754 ) (4,295 ) (79 ) Total tangible assets less net unrealized losses on HTM securities, net of tax (non-GAAP) $ 7,498,457 $ 7,316,738 $ 5,692,696 Tangible common stockholders’ equity to tangible assets (non-GAAP) 9.21 % 9.09 % 8.34 % Less: Net unrealized losses on HTM securities, net of tax 0.05 % 0.06 % — % Tangible common stockholders’ equity to tangible assets reflecting net unrealized losses on HTM securities, net of tax (non-GAAP) 9.16 % 9.03 % 8.34 % Tangible book value per common share: Stockholders' equity (GAAP) $ 799,050 $ 774,536 $ 515,541 Tangible stockholders' equity (non-GAAP) (1) $ 690,805 $ 665,247 $ 474,568 Total common shares outstanding 24,924,023 24,920,984 18,346,288 Book value per common share (GAAP) $ 32.06 $ 31.08 $ 28.10 Tangible book value per common share (non-GAAP) $ 27.72 $ 26.69 $ 25.87 Net income excluding merger costs: Net income (GAAP) $ 26,281 $ 24,570 $ 7,669 Add: Merger costs Merger related expenses — — 303 Income tax effect on merger related expenses — — (50 ) Total merger costs — — 253 Net income excluding merger costs (non-GAAP) $ 26,281 $ 24,570 $ 7,922 Return on average total assets excluding merger costs: Return on average total assets (ROAA) (GAAP) 1.44 % 1.38 % 0.54 % Add: Impact of merger costs, net of tax — % — % 0.02 % ROAA excluding merger costs (non-GAAP) 1.44 % 1.38 % 0.56 % (1) For all periods presented tangible stockholders’ equity is the same as tangible common stockholders’ equity. Return on average stockholders’ equity excluding merger costs: Return on average stockholders' equity (ROAE) (GAAP) 13.37 % 12.89 % 5.85 % Add: Impact of merger costs, net of tax — % — % 0.19 % ROAE excluding merger costs (non-GAAP) 13.37 % 12.89 % 6.04 % Efficiency ratio excluding merger related expenses: Efficiency ratio (GAAP) 60.47 % 60.33 % 80.75 % Less: Impact of merger related expenses — % — % 0.47 % Efficiency ratio excluding merger related expenses (non-GAAP) 60.47 % 60.33 % 80.28 % Diluted earnings per share excluding merger costs: Diluted earnings per share (GAAP) $ 1.03 $ 0.96 $ 0.41 Add: Impact of merger costs, net of tax — — 0.01 Diluted earnings per share excluding merger costs (non-GAAP) $ 1.03 $ 0.96 $ 0.42 Fully tax equivalent (“FTE”) net interest income and net interest margin on FTE basis: Net interest income (GAAP) $ 74,117 $ 73,276 $ 41,285 Gross income effect of tax exempt income 1,242 1,218 1,321 FTE net interest income (non-GAAP) $ 75,359 $ 74,494 $ 42,606 Average earning assets $ 6,755,933 $ 6,589,827 $ 5,359,626 Net interest margin 4.39 % 4.45 % 3.08 % Net interest margin on FTE basis (non-GAAP) 4.46 % 4.52 % 3.17 % View source version on businesswire.com: https://www.businesswire.com/news/home/20230428005390/en/Contacts Investor Relations: Kelly C. Rackley Corporate Secretary & Stockholder Relations Manager 303.962.0150 | stockholder.relations@sunflowerbank.com Media Relations: Jeanne Lipson Vice President, Marketing 915.881.6785
First Quarter 2023 Highlights: Net income of $26.3 million, $1.03 per diluted share Net interest margin of 4.39% Return on average total assets of 1.44% Return on average stockholders’ equity of 13.37% Loan growth of 10.1% annualized 20.3% fee revenue to total revenue
FirstSun Capital Bancorp (“FirstSun”) (OTCQX: FSUN) reported net income of $26.3 million for the first quarter of 2023 compared to net income of $7.7 million for the first quarter of 2022. Earnings per diluted share were $1.03 for the first quarter of 2023 compared to $0.41 for the first quarter of 2022. Earnings for the first quarter of 2022 were impacted by $0.3 million of merger costs, net of tax, or $0.01 per diluted share. Neal Arnold, FirstSun’s President and Chief Executive Officer, commented, “We are very pleased with our strong operating results this quarter amidst a more challenging banking environment. Highlights this quarter include net interest margin of 4.39%, steady loan growth, deposit stability and continued credit quality strength. Our industry has recently been reminded of the benefits of a well-diversified and balanced business mix as well as the importance of asset/liability management. We believe our diversified business model with its emphasis across our commercial and industrial business and consumer clients, our balanced mix of spread and service-based revenues, our geographic diversity, along with our disciplined and conservative balance sheet management provides a stable platform for responsible growth and favorable performance even in difficult times. Additionally, we believe our strong capital base, our granular and stable deposit base, our securities portfolio positioning and our overall asset sensitive profile provides us with flexibility as the competition for deposits increases in this environment.” First Quarter 2023 Results Net income totaled $26.3 million, or $1.03 per diluted share, during the first quarter of 2023, compared to $24.6 million, or $0.96 per diluted share, during the prior quarter. The return on average total assets was 1.44% in the first quarter of 2023, compared to 1.38% in the prior quarter, and the return on average stockholders’ equity was 13.37% in the first quarter of 2023, compared to 12.89% in the prior quarter. Net Interest Income and Net Interest Margin Net interest income totaled $74.1 million during the first quarter of 2023, an increase of $0.8 million compared to the prior quarter. Our net interest margin decreased 6 basis points to 4.39% compared to the prior quarter. Results in the first quarter of 2023, compared to the prior quarter, were driven by an increase of 45 basis points in yield on earning assets, offset by an increase of 71 basis points in the cost of interest-bearing liabilities. Average loans increased by $0.2 billion in the first quarter of 2023, compared to the prior quarter. Loan yield increased by 42 basis points to 5.88% in the first quarter of 2023, compared to the prior quarter, primarily due to the rising interest rate environment and its impact on variable rate loans in the loan portfolio and higher yields on new originations. Average interest-bearing deposits increased $0.3 billion in the first quarter of 2023, compared to the prior quarter. Total cost of deposits increased by 74 basis points to 1.39% in the first quarter of 2023, compared to the prior quarter, primarily due to an increase in deposit pricing as a result of the rising interest rate environment. Average FHLB borrowings decreased $17.8 million in the first quarter of 2023, compared to the prior quarter. The cost of FHLB borrowings increased by 88 basis points to 4.68% in the first quarter of 2023, compared to the prior quarter, primarily due to the rising interest rate environment. Asset Quality and Provision for Credit Losses The provision for credit losses totaled $3.4 million during the first quarter of 2023, a decrease of $2.2 million from the $5.6 million in the prior quarter, primarily due to slower loan growth and generally neutral macroeconomic indicators relative to the prior quarter. Net charge-offs during the first quarter of 2023 were $0.1 million, resulting in a negligible ratio of net charge-offs to average loans annualized, compared to net charge-offs (recoveries) of $(0.6) million, or a ratio of net charge-offs (recoveries) to average loans of (0.04)% annualized, in the prior quarter. The allowance for credit losses as a percentage of total loans was 1.23% at March 31, 2023, or an increase of 11 basis points from the prior quarter. On January 1, 2023, we adopted ASU 2016-13, Financial Instruments - Credit Losses (Topic 326), which increased our allowance for credit losses as a percentage of total loans to 1.20% at adoption, or an eight basis point increase from 1.12% at December 31, 2022. The increase in our allowance for credit losses was a result of changing from an “incurred loss” model, which encompasses allowances for current known and incurred losses within the portfolio, to an “expected loss” model, which encompasses allowances for losses expected to be recognized over the life of the portfolio. The ratio of nonperforming assets to total assets was 0.51% at March 31, 2023, compared to 0.48% at December 31, 2022. Noninterest Income Noninterest income totaled $18.9 million during the first quarter of 2023, an increase of $0.3 million from the prior quarter. Mortgage banking income increased $1.2 million during the first quarter of 2023, primarily due to an increase in fair value of our interest rate lock commitments from the prior quarter. Total originations of mortgage loans held-for-sale increased by $9.9 million, or 5.3%, in the first quarter of 2023 from the prior quarter. Other noninterest income decreased $0.8 million during the first quarter of 2023, primarily due to a decrease in loan syndication fees and customer accommodation swap fees. Noninterest income as a percentage of total revenue totaled 20.3%, which is unchanged from the prior quarter. Noninterest Expense Noninterest expense totaled $56.3 million during the first quarter of 2023, an increase of $0.8 million from the prior quarter. Salaries and employee benefits increased $2.7 million from the prior quarter primarily due to higher benefit costs generally incurred in the first quarter of each year. Occupancy and equipment expenses increased $0.5 million from the prior quarter primarily due to the impact of adoption in the prior quarter of ASU 2016-02, Leases. Amortization of intangible assets decreased $1.0 million from the prior quarter. Other noninterest expenses decreased $1.3 million from the prior quarter primarily due to data processing and loan appraisal, servicing, and collection expenses as we experienced a lesser level of transaction volume in the first quarter of 2023. The efficiency ratio for the first quarter of 2023 was 60.47% compared to 60.33% in the prior quarter. Tax Rate The effective tax rate was 21.4% in the first quarter of 2023, compared to 20.4% in the prior quarter. Loans Total loans were $6.1 billion at March 31, 2023, compared to $5.9 billion at December 31, 2022, an increase of $149.1 million in the first quarter of 2023, or 10.1% on an annualized basis, resulting primarily from growth in commercial and industrial and residential real estate balances. Deposits Average deposits were $5.8 billion for the first quarter of 2023, compared to $5.7 billion for the prior quarter, an increase of $0.1 billion in the first quarter of 2023, or 10.2% on an annualized basis. Noninterest-bearing deposit accounts represented 29.4% of total deposits at March 31, 2023 and the loan-to-deposit ratio was 101.1% at March 31, 2023. Total uninsured and uncollateralized deposits were approximately 25.5% at March 31, 2023, compared to 41.6% at December 31, 2022. Capital Capital ratios remain strong and above “well-capitalized” thresholds. As of March 31, 2023, our common equity tier 1 risk-based capital ratio was 10.11%, total risk-based capital ratio was 12.19% and tier 1 leverage ratio was 9.86%. Book value per common share was $32.06 at March 31, 2023, an increase of $0.98 from December 31, 2022. Tangible book value per common share, a non-GAAP financial measure, was $27.72 at March 31, 2023, an increase of $1.03 from December 31, 2022. Non-GAAP Financial Measures This press release (including the tables within the “Non-GAAP Financial Measures and Reconciliations” section) contains financial 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 non-GAAP financial measures, however, 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 non-GAAP measures used in this press release: Tangible common stockholders’ equity; Tangible assets; Tangible common stockholders’ equity to tangible assets; Tangible common stockholders’ equity to tangible assets, reflecting net unrealized losses on HTM securities, net of tax; 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; and Fully tax equivalent (“FTE”) net interest income and net interest margin on FTE basis. The tables beginning within the “Non-GAAP Financial Measures and Reconciliations” section provide a reconciliation of each non-GAAP financial measure contained in this press release 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 $7.6 billion as of March 31, 2023. First National 1870 and Guardian Mortgage are divisions of Sunflower Bank, N.A. To learn more, visit ir.firstsuncb.com, SunflowerBank.com, FirstNational1870.com or GuardianMortgageOnline.com. Summary Data: As of and for the quarter ended ($ in thousands, except per share amounts) March 31, 2023 December 31, 2022 March 31, 2022 Net interest income $ 74,117 $ 73,276 $ 41,285 Provision for credit losses 3,360 5,600 3,700 Noninterest income 18,931 18,618 23,693 Noninterest expense 56,266 55,443 52,467 Income before income taxes 33,422 30,851 8,811 Provision for income taxes 7,141 6,281 1,142 Net income 26,281 24,570 7,669 Net income, excluding merger costs (1) 26,281 24,570 7,922 Diluted earnings per share $ 1.03 $ 0.96 $ 0.41 Diluted earnings per share, excluding merger costs (1) $ 1.03 $ 0.96 $ 0.42 Return on average total assets 1.44 % 1.38 % 0.54 % Return on average total assets, excluding merger costs (1) 1.44 % 1.38 % 0.56 % Return on average stockholders' equity 13.37 % 12.89 % 5.85 % Return on average stockholders’ equity, excluding merger costs (1) 13.37 % 12.89 % 6.04 % Net interest margin 4.39 % 4.45 % 3.08 % Net interest margin (FTE basis) (1) 4.46 % 4.52 % 3.17 % Efficiency ratio 60.47 % 60.33 % 80.75 % Efficiency ratio, excluding merger related expenses (1) 60.47 % 60.33 % 80.28 % Fee revenue to total revenue 20.35 % 20.26 % 36.46 % Total assets $ 7,610,456 $ 7,430,322 $ 5,733,748 Total loans held-for-sale 66,255 57,323 57,700 Total loans held-for-investment 6,060,975 5,911,832 4,315,031 Total deposits 5,994,266 5,765,062 4,946,482 Total stockholders' equity 799,050 774,536 515,541 Period end loan-to-deposit ratio 101.11 % 102.55 % 87.23 % Book value per common share $ 32.06 $ 31.08 $ 28.10 Tangible book value per common share (1) $ 27.72 $ 26.69 $ 25.87 (1) Represents a non-GAAP financial measure. See the tables within the “Non-GAAP Financial Measures and Reconciliations” section for a reconciliation of each non-GAAP measure to the most comparable GAAP equivalent. Condensed Consolidated Statements of Income (Unaudited): As of and for the quarter ended ($ in thousands, except per share amounts) March 31, 2023 December 31, 2022 March 31, 2022 Total interest income $ 94,903 $ 85,165 $ 44,661 Total interest expense 20,786 11,889 3,376 Net interest income 74,117 73,276 41,285 Provision for credit losses 3,360 5,600 3,700 Net interest income after provision for credit losses 70,757 67,676 37,585 Noninterest income: Service charges on deposits 5,015 5,100 3,925 Credit and debit card fees 2,981 3,003 2,415 Trust and investment advisory fees 1,461 1,398 1,947 Mortgage banking income, net 7,429 6,268 14,561 Other noninterest income 2,045 2,849 845 Total noninterest income 18,931 18,618 23,693 Noninterest expense: Salaries and benefits 35,049 32,378 34,225 Occupancy and equipment 8,174 7,707 6,833 Amortization of intangible assets 1,044 2,018 327 Merger related expenses — — 303 Other noninterest expenses 11,999 13,340 10,779 Total noninterest expense 56,266 55,443 52,467 Income before income taxes 33,422 30,851 8,811 Provision for income taxes 7,141 6,281 1,142 Net income $ 26,281 $ 24,570 $ 7,669 Earnings per share - basic $ 1.05 $ 0.99 $ 0.42 Earnings per share - diluted $ 1.03 $ 0.96 $ 0.41 Condensed Consolidated Balance Sheets as of (Unaudited): ($ in thousands) March 31, 2023 December 31, 2022 March 31, 2022 Assets Cash and cash equivalents $ 388,349 $ 343,526 $ 487,689 Securities available-for-sale, at fair value 532,650 536,973 556,723 Securities held-to-maturity 38,470 38,901 16,799 Loans held-for-sale, at fair value 66,255 57,323 57,700 Loans 6,060,975 5,911,832 4,315,031 Allowance for credit losses (74,459 ) (65,917 ) (50,509 ) Loans, net 5,986,516 5,845,915 4,264,522 Mortgage servicing rights, at fair value 73,424 74,097 60,481 Premises and equipment, net 86,430 87,079 52,198 Other real estate owned and foreclosed assets, net 6,358 6,358 5,162 Goodwill 93,483 93,483 33,050 Intangible assets, net 14,762 15,806 7,923 All other assets 323,759 330,861 191,501 Total assets $ 7,610,456 $ 7,430,322 $ 5,733,748 Liabilities and Stockholders' Equity Liabilities: Deposits: Noninterest-bearing demand deposit accounts $ 1,764,440 $ 1,820,490 $ 1,662,980 Interest-bearing deposit accounts: Interest-bearing demand accounts 238,658 212,357 155,388 Savings accounts and money market accounts 2,705,315 2,759,969 2,742,393 NOW accounts 45,192 50,224 74,106 Certificate of deposit accounts 1,240,661 922,022 311,615 Total deposits 5,994,266 5,765,062 4,946,482 Securities sold under agreements to repurchase 31,645 36,721 69,627 Federal Home Loan Bank advances 577,285 643,885 40,000 Other borrowings 80,373 80,235 87,799 Other liabilities 127,837 129,883 74,299 Total liabilities 6,811,406 6,655,786 5,218,207 Stockholders' equity: Preferred stock — — — Common stock 2 2 2 Additional paid-in capital 461,174 460,720 262,071 Treasury stock — — (38,148 ) Retained earnings 380,270 357,797 306,284 Accumulated other comprehensive loss, net (42,396 ) (43,983 ) (14,668 ) Total stockholders' equity 799,050 774,536 515,541 Total liabilities and stockholders' equity $ 7,610,456 $ 7,430,322 $ 5,733,748 Share Data as of and for the periods ended: As of and for the quarter ended March 31, 2023 December 31, 2022 March 31, 2022 Weighted average common shares outstanding, basic 24,923,259 24,907,643 18,346,288 Weighted average common shares outstanding, diluted 25,487,582 25,525,026 18,899,852 Period end common shares outstanding 24,924,023 24,920,984 18,346,288 Book value per common share $ 32.06 $ 31.08 $ 28.10 Tangible book value per common share (1) $ 27.72 $ 26.69 $ 25.87 Consolidated Capital Ratios as of: March 31, 2023 December 31, 2022 March 31, 2022 Stockholders' equity to total assets 10.50 % 10.42 % 8.99 % Tangible common stockholders' equity to tangible assets (1) 9.21 % 9.09 % 8.34 % Tangible common stockholders' equity to tangible assets reflecting net unrealized losses on HTM securities, net of tax (1) (2) 9.16 % 9.03 % 8.34 % Tier 1 leverage ratio 9.86 % 9.71 % 8.42 % Common equity tier 1 risk-based capital ratio 10.11 % 9.94 % 9.27 % Tier 1 risk-based capital ratio 10.11 % 9.94 % 9.27 % Total risk-based capital ratio 12.19 % 11.99 % 11.74 % (1) Represents a non-GAAP financial measure. See the tables within the “Non-GAAP Financial Measures and Reconciliations” section for a reconciliation of each non-GAAP measure to the most comparable GAAP equivalent. (2) Tangible common stockholders’ equity and tangible assets have been adjusted to reflect net unrealized losses on held-to-maturity securities, net of tax. Summary of Net Interest Margin: For the quarter ended March 31, 2023 For the quarter ended December 31, 2022 For the quarter ended March 31, 2022 (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 $ 50,129 $ 654 5.22 % $ 51,835 $ 606 4.68 % $ 60,895 $ 694 4.56 % Loans held-for-investment (1) 5,978,860 87,947 5.88 % 5,759,436 78,669 5.46 % 4,123,920 41,164 3.99 % Investment securities 570,682 4,164 2.92 % 573,592 3,933 2.74 % 582,333 2,275 1.56 % Interest-bearing cash and other assets 156,262 2,138 5.47 % 204,964 1,957 3.82 % 592,478 528 0.36 % Total earning assets 6,755,933 94,903 5.62 % 6,589,827 85,165 5.17 % 5,359,626 44,661 3.33 % Other assets 553,961 553,870 314,043 Total assets $ 7,309,894 $ 7,143,697 $ 5,673,669 Interest-bearing liabilities Demand and NOW deposits $ 227,170 $ 1,234 2.17 % $ 213,491 $ 927 1.74 % $ 223,020 $ 124 0.22 % Savings deposits 470,000 445 0.38 % 492,837 348 0.28 % 468,713 91 0.08 % Money market deposits 2,296,469 5,068 0.88 % 2,412,289 3,126 0.52 % 2,306,638 840 0.15 % Certificates of deposits 1,073,006 7,432 2.77 % 647,819 1,733 1.07 % 317,948 519 0.65 % Total deposits 4,066,645 14,179 1.39 % 3,766,436 6,134 0.65 % 3,316,319 1,574 0.19 % Repurchase agreements 29,672 30 0.41 % 38,795 45 0.46 % 71,425 8 0.04 % Total deposits and repurchase agreements 4,096,317 14,209 1.39 % 3,805,231 6,179 0.65 % 3,387,744 1,582 0.19 % FHLB borrowings 454,081 5,317 4.68 % 471,880 4,477 3.80 % 40,229 148 1.48 % Other long-term borrowings 80,300 1,260 6.28 % 80,162 1,233 6.15 % 86,191 1,646 7.63 % Total interest-bearing liabilities 4,630,698 20,786 1.80 % 4,357,273 11,889 1.09 % 3,514,164 3,376 0.38 % Noninterest-bearing deposits 1,768,381 1,923,401 1,566,088 Other liabilities 124,543 100,671 68,999 Stockholders' equity 786,272 762,352 524,418 Total liabilities and stockholders' equity $ 7,309,894 $ 7,143,697 $ 5,673,669 Net interest income $ 74,117 $ 73,276 $ 41,285 Net interest spread 3.82 % 4.08 % 2.95 % Net interest margin 4.39 % 4.45 % 3.08 % Net interest margin (on FTE basis) (2) 4.46 % 4.52 % 3.17 % (1) Includes nonaccrual loans. (2) Represents a non-GAAP financial measure. See the tables within the “Non-GAAP Financial Measures and Reconciliations” section for a reconciliation of each non-GAAP measure to the most comparable GAAP equivalent. Deposits: ($ in thousands) March 31, 2023 December 31, 2022 March 31, 2023 vs December 31, 2022 % change March 31, 2022 March 31, 2023 vs March 31, 2022 % change Consumer Noninterest bearing deposit accounts $ 399,008 $ 416,709 (4.25 ) % $ 361,475 10.38 % Interest-bearing deposit accounts: Demand and NOW deposits 25,284 25,940 (2.53 ) % 28,083 (9.97 ) % Savings deposits 407,173 418,101 (2.61 ) % 421,397 (3.38 ) % Money market deposits 1,296,099 1,375,671 (5.78 ) % 1,463,495 (11.44 ) % Certificates of deposits 759,726 662,831 14.62 % 291,105 160.98 % Total interest-bearing deposit accounts 2,488,282 2,482,543 0.23 % 2,204,080 12.89 % Total consumer deposits $ 2,887,290 $ 2,899,252 (0.41 ) % $ 2,565,555 12.54 % Business Noninterest bearing deposit accounts $ 1,365,432 $ 1,403,781 (2.73 ) % $ 1,301,505 4.91 % Interest-bearing deposit accounts: Demand and NOW deposits 258,566 236,641 9.27 % 201,411 28.38 % Savings deposits 59,308 58,818 0.83 % 54,438 8.95 % Money market deposits 942,735 907,379 3.90 % 803,063 17.39 % Certificates of deposits 480,935 259,191 85.55 % 20,510 2244.88 % Total interest-bearing deposit accounts 1,741,544 1,462,029 19.12 % 1,079,422 61.34 % Total business customer deposits $ 3,106,976 $ 2,865,810 8.42 % $ 2,380,927 30.49 % Total deposits $ 5,994,266 $ 5,765,062 3.98 % $ 4,946,482 21.18 % Balance Sheet Ratios: March 31, 2023 December 31, 2022 March 31, 2022 Cash to total assets (1) 4.6 % 4.1 % 7.10 % Loan to deposit ratio 101.11 % 102.55 % 87.23 % Uninsured and uncollateralized deposits to total deposits (2) 25.5 % 41.6 % 51.3 % Wholesale borrowings to total liabilities (3) 8.48 % 9.67 % 0.77 % Tangible common stockholders' equity to tangible assets (4) 9.21 % 9.09 % 8.34 % Tangible common stockholders' equity to tangible assets, reflecting net unrealized losses on HTM securities, net of tax (4) (5) 9.16 % 9.03 % 8.34 % (1) Cash consists of cash and amounts due from banks and interest-bearing deposits in other financial institutions. (2) Uninsured and uncollateralized deposits are estimated. (3) Wholesale borrowings consists of FHLB overnight borrowings and term advances. (4) Represents a non-GAAP financial measure. See the tables within the “Non-GAAP Financial Measures and Reconciliations” section for a reconciliation of each non-GAAP measure to the most comparable GAAP equivalent. (5) Tangible common stockholders’ equity and tangible assets have been adjusted to reflect net unrealized losses on held-to-maturity securities, net of tax. Loan Portfolio: ($ in thousands) March 31, 2023 December 31, 2022 March 31, 2023 vs December 31, 2022 % change March 31, 2022 March 31, 2023 vs March 31, 2022 % change Commercial and industrial $ 2,418,771 $ 2,310,929 4.7 % $ 1,819,705 32.9 % Commercial real estate: Non-owner occupied 709,977 779,546 (8.9 ) % 624,729 13.6 % Owner occupied 659,999 636,272 3.7 % 445,654 48.1 % Construction and land 320,193 327,817 (2.3 ) % 144,122 122.2 % Multifamily 103,767 102,068 1.7 % 66,112 57.0 % Total commercial real estate 1,793,936 1,845,703 (2.8 ) % 1,280,617 40.1 % Residential real estate 1,046,047 1,003,931 4.2 % 501,230 108.7 % Public Finance 597,850 590,284 1.3 % 624,187 (4.2 ) % Consumer 40,806 42,588 (4.2 ) % 17,981 126.9 % Other 163,565 118,397 38.1 % 71,311 129.4 % Total loans, net of deferred costs, fees, premiums, and discounts $ 6,060,975 $ 5,911,832 2.5 % $ 4,315,031 40.5 % Asset Quality: As of and for the quarter ended ($ in thousands) March 31, 2023 December 31, 2022 March 31, 2022 Net charge-offs (recoveries) $ 54 $ (639 ) $ 738 Allowance for credit losses $ 74,459 $ 65,917 $ 50,509 Nonperforming loans, including nonaccrual loans, and accrual loans greater than 90 days past due (1) $ 32,833 $ 29,067 $ 25,365 Nonperforming assets $ 39,191 $ 35,425 $ 30,527 Ratio of net charge-offs (recoveries) to average loans outstanding — % (0.04 ) % 0.07 % Allowance for credit losses to total loans outstanding 1.23 % 1.12 % 1.17 % Allowance for credit losses to total nonperforming loans 226.78 % 226.78 % 199.13 % Nonperforming loans to total loans 0.54 % 0.49 % 0.59 % Nonperforming assets to total assets 0.51 % 0.48 % 0.53 % (1) On January 1, 2023, we adopted ASU 2022-02, whereby we no longer recognize or account for TDRs. The loans previously classified as accrual TDRs are no longer considered nonperforming. We have adjusted prior periods to reflect this change in accounting. Non-GAAP Financial Measures and Reconciliations: As of and for the quarter ended ($ in thousands, except share and per share amounts) March 31, 2023 December 31, 2022 March 31, 2022 Tangible common stockholders’ equity: Total common stockholders' equity (GAAP) $ 799,050 $ 774,536 $ 515,541 Less: Goodwill and other intangible assets: Goodwill (93,483 ) (93,483 ) (33,050 ) Other intangible assets (14,762 ) (15,806 ) (7,923 ) Total tangible common stockholders' equity (non-GAAP) (1) $ 690,805 $ 665,247 $ 474,568 Tangible assets: Total assets (GAAP) $ 7,610,456 $ 7,430,322 $ 5,733,748 Less: Goodwill and other intangible assets: Goodwill (93,483 ) (93,483 ) (33,050 ) Other intangible assets (14,762 ) (15,806 ) (7,923 ) Total tangible assets (non-GAAP) $ 7,502,211 $ 7,321,033 $ 5,692,775 Tangible common stockholders’ equity to tangible assets: Common stockholders' equity to total assets (GAAP) 10.50 % 10.42 % 8.99 % Less: Impact of goodwill and other intangible assets (1.29 ) % (1.33 ) % (0.65 ) % Tangible common stockholders' equity to tangible assets (non-GAAP) (1) 9.21 % 9.09 % 8.34 % Tangible common stockholders’ equity to tangible assets, reflecting net unrealized losses on HTM securities, net of tax: Total tangible common stockholders' equity (non-GAAP) $ 690,805 $ 665,247 $ 474,568 Less: Net unrealized losses on HTM securities, net of tax (3,754 ) (4,295 ) (79 ) Total tangible common stockholders’ equity less net unrealized losses on HTM securities, net of tax (non-GAAP) $ 687,051 $ 660,952 $ 474,489 Total tangible assets (non-GAAP) $ 7,502,211 $ 7,321,033 $ 5,692,775 Less: Net unrealized losses on HTM securities, net of tax (3,754 ) (4,295 ) (79 ) Total tangible assets less net unrealized losses on HTM securities, net of tax (non-GAAP) $ 7,498,457 $ 7,316,738 $ 5,692,696 Tangible common stockholders’ equity to tangible assets (non-GAAP) 9.21 % 9.09 % 8.34 % Less: Net unrealized losses on HTM securities, net of tax 0.05 % 0.06 % — % Tangible common stockholders’ equity to tangible assets reflecting net unrealized losses on HTM securities, net of tax (non-GAAP) 9.16 % 9.03 % 8.34 % Tangible book value per common share: Stockholders' equity (GAAP) $ 799,050 $ 774,536 $ 515,541 Tangible stockholders' equity (non-GAAP) (1) $ 690,805 $ 665,247 $ 474,568 Total common shares outstanding 24,924,023 24,920,984 18,346,288 Book value per common share (GAAP) $ 32.06 $ 31.08 $ 28.10 Tangible book value per common share (non-GAAP) $ 27.72 $ 26.69 $ 25.87 Net income excluding merger costs: Net income (GAAP) $ 26,281 $ 24,570 $ 7,669 Add: Merger costs Merger related expenses — — 303 Income tax effect on merger related expenses — — (50 ) Total merger costs — — 253 Net income excluding merger costs (non-GAAP) $ 26,281 $ 24,570 $ 7,922 Return on average total assets excluding merger costs: Return on average total assets (ROAA) (GAAP) 1.44 % 1.38 % 0.54 % Add: Impact of merger costs, net of tax — % — % 0.02 % ROAA excluding merger costs (non-GAAP) 1.44 % 1.38 % 0.56 % (1) For all periods presented tangible stockholders’ equity is the same as tangible common stockholders’ equity. Return on average stockholders’ equity excluding merger costs: Return on average stockholders' equity (ROAE) (GAAP) 13.37 % 12.89 % 5.85 % Add: Impact of merger costs, net of tax — % — % 0.19 % ROAE excluding merger costs (non-GAAP) 13.37 % 12.89 % 6.04 % Efficiency ratio excluding merger related expenses: Efficiency ratio (GAAP) 60.47 % 60.33 % 80.75 % Less: Impact of merger related expenses — % — % 0.47 % Efficiency ratio excluding merger related expenses (non-GAAP) 60.47 % 60.33 % 80.28 % Diluted earnings per share excluding merger costs: Diluted earnings per share (GAAP) $ 1.03 $ 0.96 $ 0.41 Add: Impact of merger costs, net of tax — — 0.01 Diluted earnings per share excluding merger costs (non-GAAP) $ 1.03 $ 0.96 $ 0.42 Fully tax equivalent (“FTE”) net interest income and net interest margin on FTE basis: Net interest income (GAAP) $ 74,117 $ 73,276 $ 41,285 Gross income effect of tax exempt income 1,242 1,218 1,321 FTE net interest income (non-GAAP) $ 75,359 $ 74,494 $ 42,606 Average earning assets $ 6,755,933 $ 6,589,827 $ 5,359,626 Net interest margin 4.39 % 4.45 % 3.08 % Net interest margin on FTE basis (non-GAAP) 4.46 % 4.52 % 3.17 % View source version on businesswire.com: https://www.businesswire.com/news/home/20230428005390/en/
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