FirstSun Capital Bancorp Reports First Quarter 2025 Results

By: FirstSun Capital Bancorp via Business Wire

April 28, 2025 at 16:00 PM EDT

First Quarter 2025 Highlights:

Net income of $23.6 million, $0.83 per diluted share
Net interest margin of 4.07%
Return on average total assets of 1.20%
Return on average stockholders’ equity of 9.03%
Loan growth of 6.8%, annualized
Deposit growth of 12.3%, annualized
22.6% noninterest income to total revenue¹

FirstSun Capital Bancorp (“FirstSun”) (NASDAQ: FSUN) reported net income of $23.6 million for the first quarter of 2025 compared to net income of $12.3 million for the first quarter of 2024. Earnings per diluted share were $0.83 for the first quarter of 2025 compared to $0.45 for the first quarter of 2024. Adjusted net income, a non-GAAP financial measure, was $14.6 million or $0.53 per diluted share for the first quarter of 2024. Net income, for the first quarter of 2024, was negatively impacted by a provision for credit loss on a specific customer in our commercial and industrial (C&I) loan portfolio of $10.6 million, net of tax, or $0.39 per diluted share.

Neal Arnold, FirstSun’s Chief Executive Officer and President, commented, “We are pleased to deliver another strong quarter as our focus on growing our C&I and consumer relationships across all of our southwestern and western markets continues to yield favorable results. Among the highlights this quarter were a net interest margin of 4.07%, and strong growth in both deposits and loans. We believe our performance amidst this challenging banking environment continues to position us uniquely amongst our peers. While the economic outlook and interest rate environment may remain uncertain, our focus is on what we directly control and executing across all of our diverse businesses to grow our franchise and deliver strong financial results.

“We are also pleased to announce that we have officially opened our new branch locations in San Diego and in Los Angeles. We are excited with our growth in Southern California and we look forward to continuing to grow our clients and business relationships in these large and diverse markets.”

First Quarter 2025 Results

Net income totaled $23.6 million, or $0.83 per diluted share, for the first quarter of 2025, compared to $16.4 million, or $0.58 per diluted share, for the prior quarter. Adjusted net income, a non-GAAP financial measure, was $24.3 million or $0.86 per diluted share for the fourth quarter of 2024.

The return on average total assets was 1.20% for the first quarter of 2025, compared to 0.81% for the prior quarter, and the return on average stockholders’ equity was 9.03% for the first quarter of 2025, compared to 6.22% for the prior quarter. Fourth quarter of 2024 non-recurring expenses, net of tax, negatively impacted return on average total assets by 0.39% and return on average stockholders’ equity by 3.02%.

Net Interest Income and Net Interest Margin

Net interest income totaled $74.5 million for the first quarter of 2025, a decrease of $2.6 million compared to the prior quarter. Our net interest margin decreased two basis points to 4.07% compared to the prior quarter. Results for the first quarter of 2025, compared to the prior quarter, were primarily driven by a decrease of 13 basis points in the yield on earning assets, largely offset by a decrease of 16 basis points in the cost of interest-bearing liabilities.

Average loans, including loans held-for-sale, decreased by $61.0 million in the first quarter of 2025, compared to the prior quarter. Loan yield decreased by 15 basis points to 6.36% in the first quarter of 2025, compared to the prior quarter, primarily due to the declining interest rate environment and its impact on variable rate loans in the portfolio. Average interest-bearing deposits increased $65.0 million in the first quarter of 2025, compared to the prior quarter. Total cost of interest-bearing deposits decreased by 12 basis points to 2.73% in the first quarter of 2025, compared to the prior quarter, primarily due to rate decreases for certificates of deposit and money market deposits. Average FHLB borrowings decreased $92.5 million in the first quarter of 2025, compared to the prior quarter. The cost of FHLB borrowings decreased by 42 basis points to 4.60% in the first quarter of 2025, compared to the prior quarter.

Asset Quality and Provision for Credit Losses

The provision for credit losses totaled $3.8 million for the first quarter of 2025 impacted by deterioration on a specific customer relationship and factors related to increasing economic uncertainty, partially offset by impacts from net portfolio upgrades and increasing prepayment experience.

Net charge-offs for the first quarter of 2025 were $0.6 million resulting in an annualized ratio of net charge-offs to average loans of 0.04%, compared to net charge-offs (recoveries) of $(0.5) million, or an annualized ratio of net-charge offs (recoveries) to average loans of (0.03)% for the prior quarter.

The allowance for credit losses as a percentage of total loans was 1.42% at March 31, 2025, an increase of four basis points from the prior quarter. The ratio of nonperforming assets to total assets was 1.02% at March 31, 2025, compared to 0.92% at December 31, 2024.

Noninterest Income

Noninterest income totaled $21.7 million for the first quarter of 2025, an increase of $0.1 million from the prior quarter. Mortgage banking income decreased $0.6 million for the first quarter of 2025, primarily due to a decrease in MSR capitalization and in the change in fair value of our MSR asset, net of hedging activity, partially offset by an improvement in gain on sale margin.

Other noninterest income increased $0.8 million for the first quarter of 2025, primarily due to an increase in loan syndication and swap service fees. Noninterest income as a percentage of total revenue¹ was 22.6%, an increase of 0.7% from the prior quarter.

Noninterest Expense

Noninterest expense totaled $62.7 million for the first quarter of 2025, a decrease of $11.0 million from the prior quarter. Adjusted noninterest expense, a non-GAAP financial measure, totaled $62.8 million for the fourth quarter of 2024. Adjusted noninterest expense, a non-GAAP financial measure, decreased $0.1 million from the prior quarter as the seasonal increase in salary and employee benefits due to payroll taxes was offset by decreases in legal, travel and entertainment, marketing, and collection and appraisal expenses.

The efficiency ratio for the first quarter of 2025 was 65.19% compared to 74.66% for the prior quarter. The adjusted efficiency ratio, a non-GAAP financial measure, for the first quarter of 2025 was 65.19% compared to 63.63% for the prior quarter.

Tax Rate

The effective tax rate was 20.6% for the first quarter of 2025, compared to 18.9% for the prior quarter.

Loans

Loans were $6.5 billion at March 31, 2025 compared to $6.4 billion at December 31, 2024, an increase of $107.7 million in the first quarter of 2025, or 6.8% on an annualized basis primarily due to an increase of $137.3 million of commercial and industrial loans partially offset by a decrease of $28.3 million in commercial real estate.

Deposits

Deposits were $6.9 billion at March 31, 2025 compared to $6.7 billion at December 31, 2024, an increase of $202.0 million in the first quarter of 2025, or 12.3% on an annualized basis primarily due to growth of $140.7 million in savings and money market accounts, $33.6 million in noninterest-bearing demand deposit accounts, and $22.9 million in interest-bearing demand accounts. Noninterest-bearing deposit accounts represented 22.9% of total deposits at March 31, 2025 and the loan-to-deposit ratio was 94.3% at March 31, 2025.

Capital

Capital ratios remain strong and above “well-capitalized” thresholds. As of March 31, 2025, our common equity tier 1 risk-based capital ratio was 13.26%, total risk-based capital ratio was 15.52% and tier 1 leverage ratio was 12.47%. Book value per share was $38.49 at March 31, 2025, an increase of $0.91 from December 31, 2024. Tangible book value per share, a non-GAAP financial measure, was $34.88 at March 31, 2025, an increase of $0.94 from December 31, 2024.

Non-GAAP Financial Measures

This press release 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 stockholders’ equity to tangible assets;
Tangible stockholders’ equity to tangible assets, reflecting net unrealized losses on HTM securities, net of tax;
Tangible book value per share;
Adjusted net income;
Adjusted diluted earnings per share;
Adjusted return on average total assets;
Adjusted return on average stockholders’ equity;
Return on average tangible stockholders’ equity;
Adjusted return on average tangible stockholders’ equity;
Adjusted total noninterest expense;
Adjusted efficiency ratio; and
Fully tax equivalent (“FTE”) net interest income and net interest margin.

The tables 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, which we are in the process of rebranding as Sunflower Bank Mortgage Lending. Sunflower Bank provides a full range of relationship-focused services to meet personal, business and wealth management financial objectives, with customers in seven states and mortgage capabilities in 43 states. FirstSun had total consolidated assets of $8.2 billion as of March 31, 2025.

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.

Day-Count Convention

Annualized ratios are presented utilizing the Actual/Actual day-count convention. Prior period annualized ratios have been recalculated to conform to the current presentation.

Total revenue is net interest income plus noninterest income.

Summary Data:
	As of and for the three months ended
($ in thousands, except per share amounts)	March 31, 2025			December 31, 2024			September 30, 2024			June 30, 2024			March 31, 2024
Net interest income	$	74,478		$	77,047		$	76,158		$	72,899		$	70,806
Provision for credit losses		3,800			4,850			5,000			1,200			16,500
Noninterest income		21,729			21,635			22,075			23,274			22,808
Noninterest expense		62,722			73,673			64,664			63,875			61,828
Income before income taxes		29,685			20,159			28,569			31,098			15,286
Provision for income taxes		6,116			3,809			6,147			6,538			2,990
Net income		23,569			16,350			22,422			24,560			12,296
Adjusted net income¹		23,569			24,316			23,655			25,181			14,592
Weighted average common shares outstanding, basic		27,721,760			27,668,470			27,612,538			27,430,761			27,019,625
Weighted average common shares outstanding, diluted		28,293,912			28,290,474			28,212,809			28,031,956			27,628,941
Diluted earnings per share	$	0.83		$	0.58		$	0.79		$	0.88		$	0.45
Adjusted diluted earnings per share¹	$	0.83		$	0.86		$	0.84		$	0.90		$	0.53
Return on average total assets		1.20	%		0.81	%		1.12	%		1.27	%		0.65	%
Adjusted return on average total assets¹		1.20	%		1.20	%		1.18	%		1.30	%		0.77	%
Return on average stockholders' equity		9.03	%		6.22	%		8.74	%		10.08	%		5.18	%
Adjusted return on average stockholders' equity¹		9.03	%		9.24	%		9.22	%		10.34	%		6.14	%
Return on average tangible stockholders' equity¹		10.18	%		7.36	%		9.94	%		11.51	%		6.11	%
Adjusted return on average tangible stockholders' equity¹		10.18	%		10.72	%		10.48	%		11.79	%		7.20	%
Net interest margin		4.07	%		4.09	%		4.08	%		4.04	%		4.01	%
Net interest margin (FTE basis)¹		4.13	%		4.15	%		4.13	%		4.10	%		4.08	%
Efficiency ratio		65.19	%		74.66	%		65.83	%		66.42	%		66.05	%
Adjusted efficiency ratio¹		65.19	%		63.63	%		64.16	%		65.33	%		63.39	%
Noninterest income to total revenue²		22.6	%		21.9	%		22.5	%		24.2	%		24.4	%
Total assets	$	8,216,458		$	8,097,387		$	8,138,487		$	7,999,295		$	7,781,601
Total loans held-for-sale		65,603			61,825			72,247			66,571			56,813
Total loans held-for-investment		6,484,008			6,376,357			6,443,756			6,337,162			6,284,868
Total deposits		6,874,239			6,672,260			6,649,880			6,619,525			6,445,388
Total stockholders' equity		1,068,295			1,041,366			1,034,085			996,599			964,662
Loan to deposit ratio		94.3	%		95.6	%		96.9	%		95.7	%		97.5	%
Period end common shares outstanding		27,753,918			27,709,679			27,665,918			27,443,246			27,442,943
Book value per share	$	38.49		$	37.58		$	37.38		$	36.31		$	35.15
Tangible book value per share¹	$	34.88		$	33.94		$	33.68		$	32.56		$	31.37

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		Total revenue is net interest income plus noninterest income.

Condensed Consolidated Statements of Income (Unaudited):
	For the three months ended
($ in thousands, except per share amounts)	March 31, 2025		March 31, 2024
Total interest income	$	110,447	$	110,040
Total interest expense		35,969		39,234
Net interest income		74,478		70,806
Provision for credit losses		3,800		16,500
Net interest income after provision for credit losses		70,678		54,306
Noninterest income:
Service charges on deposits		2,027		2,344
Treasury management service fees		4,194		3,468
Credit and debit card fees		2,586		2,759
Trust and investment advisory fees		1,421		1,463
Mortgage banking income, net		9,055		9,502
Other noninterest income		2,446		3,272
Total noninterest income		21,729		22,808
Noninterest expense:
Salaries and benefits		39,561		37,353
Occupancy and equipment		9,536		8,595
Amortization of intangible assets		628		815
Terminated merger related expenses		—		2,489
Other noninterest expenses		12,997		12,576
Total noninterest expense		62,722		61,828
Income before income taxes		29,685		15,286
Provision for income taxes		6,116		2,990
Net income	$	23,569	$	12,296
Earnings per share - basic	$	0.85	$	0.46
Earnings per share - diluted	$	0.83	$	0.45

	For the three months ended
($ in thousands, except per share amounts)	March 31, 2025		December 31, 2024		September 30, 2024		June 30, 2024		March 31, 2024
Total interest income	$	110,447	$	116,039	$	118,932	$	114,529	$	110,040
Total interest expense		35,969		38,992		42,774		41,630		39,234
Net interest income		74,478		77,047		76,158		72,899		70,806
Provision for credit losses		3,800		4,850		5,000		1,200		16,500
Net interest income after provision for credit losses		70,678		72,197		71,158		71,699		54,306
Noninterest income:
Service charges on deposits		2,027		2,219		2,560		2,372		2,344
Treasury management service fees		4,194		3,982		3,748		3,631		3,468
Credit and debit card fees		2,586		2,706		2,738		2,950		2,759
Trust and investment advisory fees		1,421		1,436		1,395		1,493		1,463
Mortgage banking income, net		9,055		9,631		8,838		11,043		9,502
Other noninterest income		2,446		1,661		2,796		1,785		3,272
Total noninterest income		21,729		21,635		22,075		23,274		22,808
Noninterest expense:
Salaries and benefits		39,561		38,498		39,306		39,828		37,353
Occupancy and equipment		9,536		9,865		9,121		8,701		8,595
Amortization of intangible assets		628		1,431		651		652		815
Terminated merger related expenses		—		8,010		1,633		1,046		2,489
Other noninterest expenses		12,997		15,869		13,953		13,648		12,576
Total noninterest expense		62,722		73,673		64,664		63,875		61,828
Income before income taxes		29,685		20,159		28,569		31,098		15,286
Provision for income taxes		6,116		3,809		6,147		6,538		2,990
Net income	$	23,569	$	16,350	$	22,422	$	24,560	$	12,296
Earnings per share - basic	$	0.85	$	0.59	$	0.81	$	0.90	$	0.46
Earnings per share - diluted	$	0.83	$	0.58	$	0.79	$	0.88	$	0.45

Condensed Consolidated Balance Sheets as of (Unaudited):
($ in thousands)	March 31, 2025			December 31, 2024			September 30, 2024			June 30, 2024			March 31, 2024
Assets
Cash and cash equivalents	$	621,377		$	615,917		$	573,674		$	535,766		$	383,605
Securities available-for-sale, at fair value		480,615			469,076			496,811			491,649			499,078
Securities held-to-maturity		34,914			35,242			35,885			36,310			36,640
Loans held-for-sale, at fair value		65,603			61,825			72,247			66,571			56,813
Loans		6,484,008			6,376,357			6,443,756			6,337,162			6,284,868
Allowance for credit losses		(91,790	)		(88,221	)		(83,159	)		(78,960	)		(79,829	)
Loans, net		6,392,218			6,288,136			6,360,597			6,258,202			6,205,039
Mortgage servicing rights, at fair value		82,927			84,258			78,799			80,744			78,416
Premises and equipment, net		82,333			82,483			82,532			83,320			84,063
Other real estate owned and foreclosed assets, net		4,914			5,138			4,478			4,497			4,414
Goodwill		93,483			93,483			93,483			93,483			93,483
Intangible assets, net		6,806			7,434			8,866			9,517			10,168
All other assets		351,268			354,395			331,115			339,236			329,882
Total assets	$	8,216,458		$	8,097,387		$	8,138,487		$	7,999,295		$	7,781,601
Liabilities and Stockholders' Equity
Liabilities:
Deposits:
Noninterest-bearing demand deposit accounts	$	1,574,736		$	1,541,158		$	1,554,762		$	1,562,308		$	1,517,315
Interest-bearing deposit accounts:
Interest-bearing demand accounts		708,783			685,865			645,647			538,232			542,184
Savings and money market accounts		2,974,774			2,834,123			2,608,808			2,505,439			2,473,255
NOW accounts		39,806			45,539			41,234			42,687			39,181
Certificate of deposit accounts		1,576,140			1,565,575			1,799,429			1,970,859			1,873,453
Total deposits		6,874,239			6,672,260			6,649,880			6,619,525			6,445,388
Securities sold under agreements to repurchase		8,515			14,699			10,913			20,408			20,423
Federal Home Loan Bank advances		35,000			135,000			215,000			145,000			144,810
Other borrowings		75,969			75,841			75,709			75,577			75,445
Other liabilities		154,440			158,221			152,900			142,186			130,873
Total liabilities		7,148,163			7,056,021			7,104,402			7,002,696			6,816,939
Stockholders' equity:
Preferred stock		—			—			—			—			—
Common stock		3			3			3			3			3
Additional paid-in capital		547,484			547,325			547,271			543,339			542,582
Retained earnings		556,719			533,150			516,800			494,378			469,818
Accumulated other comprehensive loss, net		(35,911	)		(39,112	)		(29,989	)		(41,121	)		(47,741	)
Total stockholders' equity		1,068,295			1,041,366			1,034,085			996,599			964,662
Total liabilities and stockholders' equity	$	8,216,458		$	8,097,387		$	8,138,487		$	7,999,295		$	7,781,601

Consolidated Capital Ratios as of:
	March 31, 2025		December 31, 2024		September 30, 2024		June 30, 2024		March 31, 2024
Stockholders' equity to total assets	13.00	%	12.86	%	12.71	%	12.46	%	12.40	%
Tangible stockholders' equity to tangible assets¹	11.93	%	11.76	%	11.59	%	11.32	%	11.21	%
Tangible stockholders' equity to tangible assets reflecting net unrealized losses on HTM securities, net of tax^{1, 2}	11.89	%	11.71	%	11.56	%	11.27	%	11.17	%
Tier 1 leverage ratio	12.47	%	12.11	%	11.96	%	11.83	%	11.73	%
Common equity tier 1 risk-based capital ratio	13.26	%	13.18	%	13.06	%	12.80	%	12.54	%
Tier 1 risk-based capital ratio	13.26	%	13.18	%	13.06	%	12.80	%	12.54	%
Total risk-based capital ratio	15.52	%	15.42	%	15.25	%	14.95	%	14.73	%

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 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 three months ended
	March 31, 2025				March 31, 2024
(In thousands)	Average Balance		Average Yield/Rate		Average Balance		Average Yield/Rate
Interest Earning Assets
Loans¹		6,420,710	6.36	%		6,313,855	6.51	%
Investment securities		501,809	3.53	%		546,960	3.30	%
Interest-bearing cash and other assets		500,857	4.37	%		239,508	5.52	%
Total earning assets		7,423,376	6.03	%		7,100,323	6.23	%
Other assets		548,976				548,642
Total assets	$	7,972,352			$	7,648,965

Interest-bearing liabilities
Demand and NOW deposits	$	720,700	3.21	%	$	549,491	3.56	%
Savings deposits		400,801	0.58	%		421,882	0.69	%
Money market deposits		2,441,737	2.19	%		2,063,321	1.94	%
Certificates of deposits		1,547,634	3.91	%		1,814,629	4.62	%
Total deposits		5,110,872	2.73	%		4,849,323	3.02	%
Repurchase agreements		9,615	1.57	%		21,254	1.07	%
Total deposits and repurchase agreements		5,120,487	2.73	%		4,870,577	3.01	%
FHLB borrowings		29,489	4.60	%		110,777	5.59	%
Other long-term borrowings		75,907	6.43	%		75,389	6.65	%
Total interest-bearing liabilities		5,225,883	2.79	%		5,056,743	3.12	%
Noninterest-bearing deposits		1,532,150				1,502,707
Other liabilities		155,337				134,370
Stockholders' equity		1,058,982				955,145
Total liabilities and stockholders' equity	$	7,972,352			$	7,648,965

Net interest spread			3.24	%			3.11	%
Net interest margin			4.07	%			4.01	%
Net interest margin (on FTE basis)²			4.13	%			4.08	%

¹		Includes loans held-for-investment, including nonaccrual loans, and loans held-for-sale.
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.

	For the three months ended
	March 31, 2025				December 31, 2024				September 30, 2024				June 30, 2024				March 31, 2024
(In thousands)	Average Balance		Average Yield/Rate		Average Balance		Average Yield/Rate		Average Balance		Average Yield/Rate		Average Balance		Average Yield/Rate		Average Balance		Average Yield/Rate
Interest Earning Assets
Loans¹		6,420,710	6.36	%		6,481,701	6.51	%		6,460,484	6.68	%		6,384,709	6.63	%		6,313,855	6.51	%
Investment securities		501,809	3.53	%		519,221	3.40	%		527,241	3.60	%		523,545	3.67	%		546,960	3.30	%
Interest-bearing cash and other assets		500,857	4.37	%		491,326	4.48	%		442,632	5.14	%		348,509	5.28	%		239,508	5.52	%
Total earning assets		7,423,376	6.03	%		7,492,248	6.16	%		7,430,357	6.37	%		7,256,763	6.35	%		7,100,323	6.23	%
Other assets		548,976				542,862				534,740				548,465				548,642
Total assets	$	7,972,352			$	8,035,110			$	7,965,097			$	7,805,228			$	7,648,965

Interest-bearing liabilities
Demand and NOW deposits	$	720,700	3.21	%	$	703,087	3.45	%	$	657,537	3.73	%	$	621,343	3.82	%	$	549,491	3.56	%
Savings deposits		400,801	0.58	%		404,762	0.64	%		411,526	0.71	%		413,699	0.70	%		421,882	0.69	%
Money market deposits		2,441,737	2.19	%		2,348,328	2.23	%		2,140,552	2.24	%		2,092,449	2.02	%		2,063,321	1.94	%
Certificates of deposits		1,547,634	3.91	%		1,589,721	4.08	%		1,800,502	4.56	%		1,823,522	4.71	%		1,814,629	4.62	%
Total deposits		5,110,872	2.73	%		5,045,898	2.85	%		5,010,117	3.14	%		4,951,013	3.13	%		4,849,323	3.02	%
Repurchase agreements		9,615	1.57	%		10,964	1.45	%		13,528	1.29	%		16,553	1.16	%		21,254	1.07	%
Total deposits and repurchase agreements		5,120,487	2.73	%		5,056,862	2.85	%		5,023,645	3.14	%		4,967,566	3.12	%		4,870,577	3.01	%
FHLB borrowings		29,489	4.60	%		121,957	5.02	%		135,641	5.58	%		130,871	5.70	%		110,777	5.59	%
Other long-term borrowings		75,907	6.43	%		75,778	6.41	%		75,654	6.54	%		75,522	6.62	%		75,389	6.65	%
Total interest-bearing liabilities		5,225,883	2.79	%		5,254,597	2.95	%		5,234,940	3.25	%		5,173,959	3.24	%		5,056,743	3.12	%
Noninterest-bearing deposits		1,532,150				1,581,571				1,568,685				1,517,560				1,502,707
Other liabilities		155,337				152,552				141,206				133,845				134,370
Stockholders' equity		1,058,982				1,046,390				1,020,266				979,864				955,145
Total liabilities and stockholders' equity	$	7,972,352			$	8,035,110			$	7,965,097			$	7,805,228			$	7,648,965

Net interest spread			3.24	%			3.21	%			3.12	%			3.11	%			3.11	%
Net interest margin			4.07	%			4.09	%			4.08	%			4.04	%			4.01	%
Net interest margin (on FTE basis)²			4.13	%			4.15	%			4.13	%			4.10	%			4.08	%

¹		Includes loans held-for-investment, including nonaccrual loans, and loans held-for-sale.
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 as of:
($ in thousands)	March 31, 2025		December 31, 2024		September 30, 2024		June 30, 2024		March 31, 2024
Consumer
Noninterest bearing deposit accounts	$	412,734	$	410,303	$	397,880	$	414,795	$	356,732
Interest-bearing deposit accounts:
Demand and NOW deposits		93,675		61,987		61,929		42,903		38,625
Savings deposits		330,489		326,916		331,811		334,741		340,086
Money market deposits		1,600,413		1,516,577		1,333,486		1,243,355		1,229,239
Certificates of deposits		1,065,839		1,069,704		1,247,348		1,438,792		1,437,590
Total interest-bearing deposit accounts		3,090,416		2,975,184		2,974,574		3,059,791		3,045,540
Total consumer deposits	$	3,503,150	$	3,385,487	$	3,372,454	$	3,474,586	$	3,402,272
Business
Noninterest bearing deposit accounts	$	1,162,002	$	1,130,855	$	1,156,882	$	1,147,513	$	1,160,583
Interest-bearing deposit accounts:
Demand and NOW deposits		654,914		669,417		624,952		538,016		502,726
Savings deposits		75,132		75,422		77,744		77,931		80,226
Money market deposits		968,740		915,208		865,767		849,412		823,704
Certificates of deposits		65,420		51,131		62,187		90,189		97,854
Total interest-bearing deposit accounts		1,764,206		1,711,178		1,630,650		1,555,548		1,504,510
Total business deposits	$	2,926,208	$	2,842,033	$	2,787,532	$	2,703,061	$	2,665,093
Wholesale deposits¹	$	444,881	$	444,740	$	489,894	$	441,878	$	378,023
Total deposits	$	6,874,239	$	6,672,260	$	6,649,880	$	6,619,525	$	6,445,388

Wholesale deposits primarily consist of brokered deposits included in our condensed consolidated balance sheets within certificates of deposits.

Balance Sheet Ratios as of:
	March 31, 2025		December 31, 2024		September 30, 2024		June 30, 2024		March 31, 2024
Cash to total assets¹	7.50	%	7.50	%	6.90	%	6.60	%	4.80	%
Loan to deposit ratio	94.3	%	95.6	%	96.9	%	95.7	%	97.5	%
Uninsured deposits to total deposits²	35.2	%	34.8	%	32.7	%	32.1	%	32.0	%
Uninsured and uncollateralized deposits to total deposits²	26.4	%	25.2	%	26.8	%	25.5	%	25.2	%
Wholesale deposits and borrowings to total liabilities³	6.7	%	8.2	%	9.9	%	8.4	%	7.7	%

¹		Cash consists of cash and amounts due from banks and interest-bearing deposits with other financial institutions.
²		Uninsured deposits and uninsured and uncollateralized deposits are reported for our wholly-owned subsidiary Sunflower Bank, N.A. and are estimated.
³		Wholesale deposits primarily consist of brokered deposits included in our condensed consolidated balance sheets within certificates of deposits. Wholesale borrowings consist of FHLB overnight and term advances.

Loan Portfolio as of:
($ in thousands)	March 31, 2025		December 31, 2024		September 30, 2024		June 30, 2024		March 31, 2024
Commercial and industrial	$	2,635,028	$	2,497,772	$	2,527,636	$	2,431,110	$	2,480,078
Commercial real estate:
Non-owner occupied		733,949		752,861		821,670		866,999		836,515
Owner occupied		679,137		702,773		700,325		660,511		642,930
Construction and land		386,056		362,677		333,457		350,878		326,447
Multifamily		85,239		94,355		95,125		94,220		94,898
Total commercial real estate		1,884,381		1,912,666		1,950,577		1,972,608		1,900,790
Residential real estate		1,195,714		1,180,610		1,172,459		1,146,989		1,109,676
Public Finance		551,252		554,784		536,776		537,872		579,991
Consumer		39,096		41,345		45,267		42,129		40,317
Other		178,537		189,180		211,041		206,454		174,016
Total loans, net of deferred costs, fees, premiums, and discounts	$	6,484,008	$	6,376,357	$	6,443,756	$	6,337,162	$	6,284,868

Asset Quality:
	As of and for the three months ended
($ in thousands)	March 31, 2025			December 31, 2024			September 30, 2024			June 30, 2024			March 31, 2024
Net charge-offs (recoveries)	$	631		$	(462	)	$	1,401		$	2,009		$	17,429
Allowance for credit losses	$	91,790		$	88,221		$	83,159		$	78,960		$	79,829
Nonperforming loans, including nonaccrual loans, and accrual loans greater than 90 days past due	$	78,590		$	69,050		$	65,824		$	62,558		$	57,599
Nonperforming assets	$	83,504		$	74,188		$	70,302		$	67,055		$	62,013
Ratio of net charge-offs (recoveries) to average loans outstanding		0.04	%		(0.03	)%		0.09	%		0.13	%		1.12	%
Allowance for credit losses to total loans outstanding		1.42	%		1.38	%		1.29	%		1.25	%		1.27	%
Allowance for credit losses to total nonperforming loans		116.80	%		127.76	%		126.34	%		126.22	%		138.59	%
Nonperforming loans to total loans		1.21	%		1.08	%		1.02	%		0.99	%		0.92	%
Nonperforming assets to total assets		1.02	%		0.92	%		0.86	%		0.84	%		0.80	%

Non-GAAP Financial Measures and Reconciliations:
	As of and for the three months ended
($ in thousands, except share and per share amounts)	March 31, 2025			December 31, 2024			September 30, 2024			June 30, 2024			March 31, 2024
Tangible stockholders’ equity to tangible assets:
Total stockholders' equity (GAAP)	$	1,068,295		$	1,041,366		$	1,034,085		$	996,599		$	964,662
Less: Goodwill and other intangible assets
Goodwill		(93,483	)		(93,483	)		(93,483	)		(93,483	)		(93,483	)
Other intangible assets		(6,806	)		(7,434	)		(8,866	)		(9,517	)		(10,168	)
Tangible stockholders' equity (non-GAAP)	$	968,006		$	940,449		$	931,736		$	893,599		$	861,011
Total assets (GAAP)	$	8,216,458		$	8,097,387		$	8,138,487		$	7,999,295		$	7,781,601
Less: Goodwill and other intangible assets
Goodwill		(93,483	)		(93,483	)		(93,483	)		(93,483	)		(93,483	)
Other intangible assets		(6,806	)		(7,434	)		(8,866	)		(9,517	)		(10,168	)
Tangible assets (non-GAAP)	$	8,116,169		$	7,996,470		$	8,036,138		$	7,896,295		$	7,677,950
Total stockholders' equity to total assets (GAAP)		13.00	%		12.86	%		12.71	%		12.46	%		12.40	%
Less: Impact of goodwill and other intangible assets		(1.07	)%		(1.10	)%		(1.12	)%		(1.14	)%		(1.19	)%
Tangible stockholders' equity to tangible assets (non-GAAP)		11.93	%		11.76	%		11.59	%		11.32	%		11.21	%
Tangible stockholders’ equity to tangible assets, reflecting net unrealized losses on HTM securities, net of tax:
Tangible stockholders' equity (non-GAAP)	$	968,006		$	940,449		$	931,736		$	893,599		$	861,011
Less: Net unrealized losses on HTM securities, net of tax		(3,803	)		(4,292	)		(2,852	)		(3,949	)		(4,236	)
Tangible stockholders’ equity less net unrealized losses on HTM securities, net of tax (non-GAAP)	$	964,203		$	936,157		$	928,884		$	889,650		$	856,775
Tangible assets (non-GAAP)	$	8,116,169		$	7,996,470		$	8,036,138		$	7,896,295		$	7,677,950
Less: Net unrealized losses on HTM securities, net of tax		(3,803	)		(4,292	)		(2,852	)		(3,949	)		(4,236	)
Tangible assets less net unrealized losses on HTM securities, net of tax (non-GAAP)	$	8,112,366		$	7,992,178		$	8,033,286		$	7,892,346		$	7,673,714
Tangible stockholders’ equity to tangible assets (non-GAAP)		11.93	%		11.76	%		11.59	%		11.32	%		11.21	%
Less: Net unrealized losses on HTM securities, net of tax		(0.04	)%		(0.05	)%		(0.03	)%		(0.05	)%		(0.04	)%
Tangible stockholders’ equity to tangible assets reflecting net unrealized losses on HTM securities, net of tax (non-GAAP)		11.89	%		11.71	%		11.56	%		11.27	%		11.17	%
Tangible book value per share:
Total stockholders' equity (GAAP)	$	1,068,295		$	1,041,366		$	1,034,085		$	996,599		$	964,662
Tangible stockholders' equity (non-GAAP)	$	968,006		$	940,449		$	931,736		$	893,599		$	861,011
Total shares outstanding		27,753,918			27,709,679			27,665,918			27,443,246			27,442,943
Book value per share (GAAP)	$	38.49		$	37.58		$	37.38		$	36.31		$	35.15
Tangible book value per share (non-GAAP)	$	34.88		$	33.94		$	33.68		$	32.56		$	31.37
Adjusted net income:
Net income (GAAP)	$	23,569		$	16,350		$	22,422		$	24,560		$	12,296
Add: Non-recurring adjustments:
Terminated merger related expenses, net of tax		—			5,799			1,233			621			2,296
Write-off of Guardian Mortgage tradename, net of tax		—			625			—			—			—
Disposal of ATMs, net of tax		—			1,542			—			—			—
Total adjustments, net of tax		—			7,966			1,233			621			2,296
Adjusted net income (non-GAAP)	$	23,569		$	24,316		$	23,655		$	25,181		$	14,592

Adjusted diluted earnings per share:
Diluted earnings per share (GAAP)	$	0.83		$	0.58		$	0.79		$	0.88		$	0.45
Add: Impact of non-recurring adjustments:
Terminated merger related expenses, net of tax		—			0.21			0.05			0.02			0.08
Write-off of Guardian Mortgage tradename, net of tax		—			0.02			—			—			—
Disposal of ATMs, net of tax		—			0.05			—			—			—
Adjusted diluted earnings per share (non-GAAP)	$	0.83		$	0.86		$	0.84		$	0.90		$	0.53
Adjusted return on average total assets:
Return on average total assets (ROAA) (GAAP)		1.20	%		0.81	%		1.12	%		1.27	%		0.65	%
Add: Impact of non-recurring adjustments:
Terminated merger related expenses, net of tax		—	%		0.28	%		0.06	%		0.03	%		0.12	%
Write-off of Guardian Mortgage tradename, net of tax		—	%		0.03	%		—	%		—	%		—	%
Disposal of ATMs, net of tax		—	%		0.08	%		—	%		—	%		—	%
Adjusted ROAA (non-GAAP)		1.20	%		1.20	%		1.18	%		1.30	%		0.77	%
Adjusted return on average stockholders’ equity:
Return on average stockholders' equity (ROACE) (GAAP)		9.03	%		6.22	%		8.74	%		10.08	%		5.18	%
Add: Impact of non-recurring adjustments:
Terminated merger related expenses, net of tax		—	%		2.19	%		0.48	%		0.26	%		0.96	%
Write-off of Guardian Mortgage tradename, net of tax		—	%		0.24	%		—	%		—	%		—	%
Disposal of ATMs, net of tax		—	%		0.59	%		—	%		—	%		—	%
Adjusted ROACE (non-GAAP)		9.03	%		9.24	%		9.22	%		10.34	%		6.14	%
Return on average tangible stockholders’ equity
Return on average stockholders’ equity (ROACE) (GAAP)		9.03	%		6.22	%		8.74	%		10.08	%		5.18	%
Add: Impact from goodwill and other intangible assets:
Goodwill		0.94	%		0.67	%		0.98	%		1.19	%		0.63	%
Other intangible assets		0.21	%		0.47	%		0.22	%		0.24	%		0.30	%
Return on average tangible stockholders’ equity (ROATCE) (non-GAAP)		10.18	%		7.36	%		9.94	%		11.51	%		6.11	%
Adjusted return on average tangible stockholders’ equity:
Return on average tangible stockholders' equity (ROATCE) (non-GAAP)		10.18	%		7.36	%		9.94	%		11.51	%		6.11	%
Add: Impact of non-recurring adjustments:
Terminated merger related expenses, net of tax		—	%		2.45	%		0.54	%		0.28	%		1.09	%
Write-off of Guardian Mortgage tradename, net of tax		—	%		0.26	%		—	%		—	%		—	%
Disposal of ATMs, net of tax		—	%		0.65	%		—	%		—	%		—	%
Adjusted ROATCE (non-GAAP)		10.18	%		10.72	%		10.48	%		11.79	%		7.20	%

Adjusted total noninterest expense:
Total noninterest expense (GAAP)	$	62,722		$	73,673		$	64,664		$	63,875		$	61,828
Less: Non-recurring adjustments:
Terminated merger related expenses		—			(8,010	)		(1,633	)		(1,046	)		(2,489	)
Write-off of Guardian Mortgage trade name		—			(828	)		—			—			—
Disposal of ATMs		—			(2,042	)		—			—			—
Total adjustments		—			(10,880	)		(1,633	)		(1,046	)		(2,489	)
Adjusted total noninterest expense (non-GAAP)	$	62,722		$	62,793		$	63,031		$	62,829		$	59,339
Adjusted efficiency ratio:
Efficiency ratio (GAAP)		65.19	%		74.66	%		65.83	%		66.42	%		66.05	%
Less: Impact of non-recurring adjustments:
Terminated merger related expenses		—	%		(8.12	)%		(1.67	)%		(1.09	)%		(2.66	)%
Write-off of Guardian Mortgage tradename		—	%		(0.84	)%		—	%		—	%		—	%
Disposal of ATMs		—	%		(2.07	)%		—	%		—	%		—	%
Adjusted efficiency ratio (non-GAAP)		65.19	%		63.63	%		64.16	%		65.33	%		63.39	%
Fully tax equivalent (“FTE”) net interest income and net interest margin:
Net interest income (GAAP)	$	74,478		$	77,047		$	76,158		$	72,899		$	70,806
Gross income effect of tax exempt income		1,192			1,161			1,132			1,156			1,318
FTE net interest income (non-GAAP)	$	75,670		$	78,208		$	77,290		$	74,055		$	72,124
Average earning assets	$	7,423,376		$	7,492,248		$	7,430,357		$	7,256,763		$	7,100,323
Net interest margin		4.07	%		4.09	%		4.08	%		4.04	%		4.01	%
Net interest margin on FTE basis (non-GAAP)		4.13	%		4.15	%		4.13	%		4.10	%		4.08	%