FirstSun Capital reports Q3 net income of $38.4 million

FirstSun Capital Bancorp reported net income of $38.4 million for the third quarter of 2026, a significant increase from the net loss of $22.9 million recorded in the second quarter. The Denver, Colorado-based bank posted earnings per diluted share of $0.82, matching the result from the third quarter of 2025. On an adjusted basis, which excludes specific items, net income reached $48.2 million, or $1.03 per diluted share.

The improvement in profitability was driven by a 24 basis point expansion in the net interest margin to 3.82%. FirstSun’s Chief Executive Officer and President, Neal Arnold, attributed the results to continued balance sheet improvements and a diversified revenue profile. He noted that the bank is realizing operating synergies from the acquisition of First Foundation, which closed in the second quarter. Arnold also highlighted the successful completion of the First Foundation core system conversion in late September as a key integration milestone.

Net interest income totaled $140.3 million in the third quarter, down $2.9 million from the previous quarter. This decline followed a strategic repositioning of the balance sheet in the second quarter, which involved the sale of $1.3 billion in loans and $1.4 billion in securities. Despite these sales, loan yields increased by 17 basis points to 6.33%, aided by the removal of lower-yielding multifamily and public finance loans acquired from First Foundation and the impact of rising rates on variable-rate loans. Average interest-bearing deposits fell by $1.3 billion, following a $2.5 billion reduction in the prior quarter.

Asset quality metrics showed mixed trends. The provision for credit losses dropped to $4.4 million in the third quarter from $40.4 million in the second quarter, primarily reflecting specific reserves for two commercial real estate loans. Net charge-offs totaled $3.3 million, or 0.11% of average loans on an annualized basis, compared to $42.4 million, or 1.45%, in the second quarter. The allowance for credit losses stood at 1.52% of loans outstanding as of September 30, 2026. However, the ratio of nonperforming assets to total assets rose to 1.46% from 1.32% at the end of June.

Noninterest income decreased by $1.6 million to $39.4 million for the quarter. Mortgage banking services revenue fell by $3.2 million due to lower loan originations and changes in mortgage servicing right fair values. This decline was partially offset by a $1.0 million increase in other noninterest income, driven by higher swap and loan syndication revenue. Noninterest income represented 21.9% of total revenue, a slight decrease from the prior quarter.

During the quarter, FirstSun repurchased 1,245,224 common shares for $49.7 million under its share repurchase program.