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FirstSun Capital Bancorp Reports Third Quarter 2025 Results

businesswire.com

DENVER--( BUSINESS WIRE)--FirstSun Capital Bancorp (“FirstSun”) (NASDAQ: FSUN) reported net income of $23.2 million for the third quarter of 2025 compared to net income of $22.4 million for the third quarter of 2024. Earnings per diluted share were $0.82 for the third quarter of 2025 compared to $0.79 for the third quarter of 2024. Adjusted net income, a non-GAAP financial measure, was $23.7 million or $0.84 per diluted share for the third quarter of 2024.

Neal Arnold, FirstSun’s Chief Executive Officer and President, commented, “The results for this quarter continue to demonstrate the fundamental strength of our core franchise. The quarter was highlighted by a consistently strong net interest margin of 4.07%, healthy loan growth of 10.6% and a diversified revenue mix with service fees to total revenue of 24.5%. While we did experience higher credit costs this quarter, our operating results remain strong. We remain focused on the great opportunity provided by the robust business environment across our high growth southwestern and western footprint to further grow our franchise and deliver strong financial results.”

Third Quarter 2025 Results

Net income totaled $23.2 million, or $0.82 per diluted share, for the third quarter of 2025, compared to $26.4 million, or $0.93 per diluted share, for the prior quarter.

The return on average total assets was 1.09% for the third quarter of 2025, compared to 1.28% for the prior quarter, and the return on average stockholders’ equity was 8.22% for the third quarter of 2025, compared to 9.74% for the prior quarter.

Net Interest Income and Net Interest Margin

Net interest income totaled $81.0 million for the third quarter of 2025, an increase of $2.5 million compared to the prior quarter. Our net interest margin of 4.07% was unchanged compared to the prior quarter. Results for the third quarter of 2025, compared to the prior quarter, were primarily driven by an increase of two basis points in the yield on earning assets and increase of $160.5 million in average earnings assets, offset by an increase of six basis points in the cost of interest-bearing liabilities and increase of $76.6 million in average interest-bearing liabilities.

Average loans, including loans held-for-sale, increased by $46.7 million in the third quarter of 2025, compared to the prior quarter. Loan yield increased by six basis points to 6.49% in the third quarter of 2025, compared to the prior quarter, primarily due to higher yields on new originations as compared to amortizing and maturing balances. Average interest-bearing deposits increased $79.7 million in the third quarter of 2025, compared to the prior quarter. Total cost of interest-bearing deposits increased by three basis points to 2.81% in the third quarter of 2025, compared to the prior quarter, primarily due to an increase in promotional rate money market deposit balances, partially offset by a decrease in certificates of deposit balances.

Asset Quality and Provision for Credit Losses

The provision for credit losses totaled $10.1 million for the third quarter of 2025 primarily due to deterioration in a specific commercial and industrial (“C&I”) customer relationship, impacts from net changes in loan portfolio balances, and impacts from net portfolio downgrades.

Net charge-offs for the third quarter of 2025 were $9.1 million resulting in an annualized ratio of net charge-offs to average loans of 0.55%, compared to net charge-offs of $13.5 million, or an annualized ratio of net-charge offs to average loans of 0.83% for the prior quarter. Net charge-offs for the third quarter of 2025 were elevated primarily due to a write-down related to a specific customer relationship in our C&I loan portfolio.

The allowance for credit losses as a percentage of total loans was 1.26% at September 30, 2025, a decrease of two basis points from the prior quarter. The ratio of nonperforming assets to total assets was 0.98% at September 30, 2025, compared to 0.80% at June 30, 2025.

Noninterest Income

Noninterest income totaled $26.3 million for the third quarter of 2025, a decrease of $0.7 million from the prior quarter. Mortgage banking income decreased $0.6 million for the third quarter of 2025, primarily due to a decrease in fair value impact, net of hedging, related to interest rate lock commitments and loans held-for-sale, partially offset by an increase in gain on sales driven by higher margins.

Other noninterest income decreased $0.3 million for the third quarter of 2025, primarily due to a decrease in loan syndication and agency fees.

Noninterest income as a percentage of total revenue 1 was 24.5%, a decrease of 1.1% from the prior quarter.

Noninterest Expense

Noninterest expense totaled $68.9 million for the third quarter of 2025, an increase of $0.8 million from the prior quarter, primarily due to an increase in salary and employee benefits of $0.9 million resulting from an increase in headcount of C&I bankers and support personnel, in addition to higher medical insurance costs.

The efficiency ratio for the third quarter of 2025 was 64.22% compared to 64.52% for the prior quarter.

Tax Rate

The effective tax rate was 18.1% for the third quarter of 2025, compared to 20.0% for the prior quarter.

Loans

Loans were $6.7 billion at September 30, 2025 and $6.5 billion at June 30, 2025, increasing $174.6 million in the third quarter of 2025, or 10.6% on an annualized basis, primarily due to an increase of $165.9 million in commercial and industrial, and an increase of $49.0 million in multifamily, partially offset by a decrease of $40.2 million in construction and land.

Deposits

Deposits were $7.1 billion at September 30, 2025 and June 30, 2025, an increase of $5.3 million in the third quarter of 2025, or 0.3% on an annualized basis, primarily due to growth of $65.9 million in interest-bearing demand accounts, and $56.8 million in savings and money market accounts, partially offset by a decrease of $75.8 million in certificates of deposits, and $32.2 million in non-interest-bearing demand deposit accounts. Average deposits increased $134.8 million in the third quarter of 2025, or 7.7% on an annualized basis, compared to the prior quarter.

Noninterest-bearing deposit accounts represented 23.6% of total deposits at September 30, 2025 and the loan-to-deposit ratio was 94.0% at September 30, 2025.

Capital

Capital ratios remain strong and above “well-capitalized” thresholds. As of September 30, 2025, our common equity tier 1 risk-based capital ratio was 13.79%, total risk-based capital ratio was 15.81% and tier 1 leverage ratio was 12.44%. Book value per share was $40.48 at September 30, 2025, an increase of $1.13 from June 30, 2025. Tangible book value per share, a non-GAAP financial measure, was $36.92 at September 30, 2025, an increase of $1.15 from June 30, 2025.

Subsequent Event

On October 1, 2025, FirstSun Capital Bancorp redeemed the entire principal amount, or $40 million, of its 6.000% Fixed-to-Floating Rate Subordinated Notes Due July 1, 2030.

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:

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 and First National 1870. Sunflower Bank provides a full range of relationship-focused services to meet personal, business and wealth management financial objectives, with depository branches in seven states and mortgage capabilities in 43 states. FirstSun had total consolidated assets of $8.5 billion as of September 30, 2025.

First National 1870 is a division of Sunflower Bank, N.A. To learn more, visit ir.firstsuncb.com or SunflowerBank.com

Analyst Conference Call

FirstSun will host a conference call on Tuesday, October 28, 2025 at 10:00 a.m. (ET) to discuss its third quarter 2025 results. Participants may call in by dialing (833) 470-1428 for toll-free within the US and (404) 975-4839 for all other locations. The conference ID number is 154988. Phone numbers for international participants are listed at https://www.netroadshow.com/events/global-numbers?confId=48643.

Alternatively, individuals may listen to the live webcast of the presentation by visiting the link on the Events & Presentations page of FirstSun’s website. An audio replay of the live webcast is expected to be available following the live event on the Events & Presentations page of FirstSun’s website.

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.

1 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)

September 30,

2025

June 30,

2025

March 31,

2025

December 31,

2024

September 30,

2024

Net interest income

$

80,953

$

78,499

$

74,478

$

77,047

$

76,158

Provision for credit losses

10,100

4,500

3,800

4,850

5,000

Noninterest income

26,333

27,073

21,729

21,635

22,075

Noninterest expense

68,901

68,110

62,722

73,673

64,664

Income before income taxes

28,285

32,962

29,685

20,159

28,569

Provision for income taxes

5,111

6,576

6,116

3,809

6,147

Net income

23,174

26,386

23,569

16,350

22,422

Adjusted net income 1

23,174

26,386

23,569

24,316

23,655

Weighted average common shares outstanding, basic

27,801,255

27,783,710

27,721,760

27,668,470

27,612,538

Weighted average common shares outstanding, diluted

28,291,778

28,232,319

28,293,912

28,290,474

28,212,809

Diluted earnings per share

$

0.82

$

0.93

$

0.83

$

0.58

$

0.79

Adjusted diluted earnings per share 1

$

0.82

$

0.93

$

0.83

$

0.86

$

0.84

Return on average total assets

1.09

%

1.28

%

1.20

%

0.81

%

1.12

%

Adjusted return on average total assets 1

1.09

%

1.28

%

1.20

%

1.20

%

1.18

%

Return on average stockholders' equity

8.22

%

9.74

%

9.03

%

6.22

%

8.74

%

Adjusted return on average stockholders' equity 1

8.22

%

9.74

%

9.03

%

9.24

%

9.22

%

Return on average tangible stockholders' equity 1

9.20

%

10.91

%

10.18

%

7.36

%

9.94

%

Adjusted return on average tangible stockholders' equity 1

9.20

%

10.91

%

10.18

%

10.72

%

10.48

%

Net interest margin

4.07

%

4.07

%

4.07

%

4.09

%

4.08

%

Net interest margin (FTE basis) 1

4.12

%

4.13

%

4.13

%

4.15

%

4.13

%

Efficiency ratio

64.22

%

64.52

%

65.19

%

74.66

%

65.83

%

Adjusted efficiency ratio 1

64.22

%

64.52

%

65.19

%

63.63

%

64.16

%

Noninterest income to total revenue 2

24.5

%

25.6

%

22.6

%

21.9

%

22.5

%

Total assets

$

8,495,437

$

8,435,861

$

8,216,458

$

8,097,387

$

8,138,487

Total loans held-for-sale

85,250

90,781

65,603

61,825

72,247

Total loans held-for-investment

6,681,629

6,507,066

6,484,008

6,376,357

6,443,756

Total deposits

7,105,415

7,100,164

6,874,239

6,672,260

6,649,880

Total stockholders' equity

1,127,513

1,095,402

1,068,295

1,041,366

1,034,085

Loan to deposit ratio

94.0

%

91.6

%

94.3

%

95.6

%

96.9

%

Period end common shares outstanding

27,854,764

27,834,525

27,753,918

27,709,679

27,665,918

Book value per share

$

40.48

$

39.35

$

38.49

$

37.58

$

37.38

Tangible book value per share 1

$

36.92

$

35.77

$

34.88

$

33.94

$

33.68

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.

As of and for the nine months ended

($ in thousands, except per share amounts)

September 30,

2025

September 30,

2024

Net interest income

$

233,930

$

219,863

Provision for credit losses

18,400

22,700

Noninterest income

75,135

68,157

Noninterest expense

199,733

190,367

Income before income taxes

90,932

74,953

Provision for income taxes

17,803

15,675

Net income

73,129

59,278

Adjusted net income 1

73,129

63,428

Weighted average common shares outstanding, basic

27,769,320

27,355,098

Weighted average common shares outstanding, diluted

28,274,134

27,976,215

Diluted earnings per share

$

2.59

$

2.12

Adjusted diluted earnings per share 1

$

2.59

$

2.27

Return on average total assets

1.19

%

1.01

%

Adjusted return on average total assets 1

1.19

%

1.09

%

Return on average stockholders' equity

8.99

%

8.04

%

Adjusted return on average stockholders’ equity 1

8.99

%

8.60

%

Return on average tangible stockholders' equity 1

10.08

%

9.23

%

Adjusted return on average tangible stockholders' equity 1

10.08

%

9.86

%

Net interest margin

4.07

%

4.04

%

Net interest margin (FTE basis) 1

4.13

%

4.11

%

Efficiency ratio

64.62

%

66.10

%

Adjusted efficiency ratio 1

64.62

%

64.30

%

Noninterest income to total revenue 2

24.3

%

23.7

%

Total assets

$

8,495,437

$

8,138,487

Total loans held-for-sale

85,250

72,247

Total loans held-for-investment

6,681,629

6,443,756

Total deposits

7,105,415

6,649,880

Total stockholders' equity

1,127,513

1,034,085

Loan to deposit ratio

94.0

%

96.9

%

Period end common shares outstanding

27,854,764

27,665,918

Book value per share

$

40.48

$

37.38

Tangible book value per share 1

$

36.92

$

33.68

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

For the nine months ended

($ in thousands, except per share amounts)

September 30,

2025

September 30,

2024

September 30,

2025

September 30,

2024

Total interest income

$

121,128

$

118,932

$

348,496

$

343,501

Total interest expense

40,175

42,774

114,566

123,638

Net interest income

80,953

76,158

233,930

219,863

Provision for credit losses

10,100

5,000

18,400

22,700

Net interest income after credit loss expense

70,853

71,158

215,530

197,163

Noninterest income:

Service charges on deposit accounts

2,162

2,560

6,205

7,276

Treasury management service fees

4,402

3,748

12,929

10,847

Credit and debit card fees

2,671

2,738

7,985

8,447

Trust and investment advisory fees

1,536

1,395

4,430

4,351

Income from mortgage banking services, net

12,641

8,838

34,970

29,383

Other noninterest income

2,921

2,796

8,616

7,853

Total noninterest income

26,333

22,075

75,135

68,157

Noninterest expense:

Salary and employee benefits

44,822

39,306

128,304

116,487

Occupancy and equipment

9,591

9,121

28,668

26,417

Amortization and impairment of intangible assets

578

651

1,784

2,118

Terminated merger related expenses

1,633

5,168

Other noninterest expenses

13,910

13,953

40,977

40,177

Total noninterest expense

68,901

64,664

199,733

190,367

Income before income taxes

28,285

28,569

90,932

74,953

Provision for income taxes

5,111

6,147

17,803

15,675

Net income

$

23,174

$

22,422

$

73,129

$

59,278

Earnings per share - basic

$

0.83

$

0.81

$

2.63

$

2.17

Earnings per share - diluted

$

0.82

$

0.79

$

2.59

$

2.12

For the three months ended

($ in thousands, except per share amounts)

September 30,

2025

June 30,

2025

March 31,

2025

December 31,

2024

September 30,

2024

Total interest income

$

121,128

$

116,921

$

110,447

$

116,039

$

118,932

Total interest expense

40,175

38,422

35,969

38,992

42,774

Net interest income

80,953

78,499

74,478

77,047

76,158

Provision for credit losses

10,100

4,500

3,800

4,850

5,000

Net interest income after credit loss expense

70,853

73,999

70,678

72,197

71,158

Noninterest income:

Service charges on deposit accounts

2,162

2,016

2,027

2,219

2,560

Treasury management service fees

4,402

4,333

4,194

3,982

3,748

Credit and debit card fees

2,671

2,728

2,586

2,706

2,738

Trust and investment advisory fees

1,536

1,473

1,421

1,436

1,395

Income from mortgage banking services, net

12,641

13,274

9,055

9,631

8,838

Other noninterest income

2,921

3,249

2,446

1,661

2,796

Total noninterest income

26,333

27,073

21,729

21,635

22,075

Noninterest expense:

Salary and employee benefits

44,822

43,921

39,561

38,498

39,306

Occupancy and equipment

9,591

9,541

9,536

9,865

9,121

Amortization and impairment of intangible assets

578

578

628

1,431

651

Terminated merger related expenses

8,010

1,633

Other noninterest expenses

13,910

14,070

12,997

15,869

13,953

Total noninterest expense

68,901

68,110

62,722

73,673

64,664

Income before income taxes

28,285

32,962

29,685

20,159

28,569

Provision for income taxes

5,111

6,576

6,116

3,809

6,147

Net income

$

23,174

$

26,386

$

23,569

$

16,350

$

22,422

Earnings per share - basic

$

0.83

$

0.95

$

0.85

$

0.59

$

0.81

Earnings per share - diluted

$

0.82

$

0.93

$

0.83

$

0.58

$

0.79

Condensed Consolidated Balance Sheets as of (Unaudited):

($ in thousands)

September 30,

2025

June 30,

2025

March 31,

2025

December 31,

2024

September 30,

2024

Assets

Cash and cash equivalents

$

659,899

$

785,115

$

621,377

$

615,917

$

573,674

Securities available-for-sale, at fair value

476,114

473,468

480,615

469,076

496,811

Securities held-to-maturity

34,247

34,581

34,914

35,242

35,885

Loans held-for-sale, at fair value

85,250

90,781

65,603

61,825

72,247

Loans

6,681,629

6,507,066

6,484,008

6,376,357

6,443,756

Allowance for credit losses

(84,040

)

(82,993

)

(91,790

)

(88,221

)

(83,159

)

Loans, net

6,597,589

6,424,073

6,392,218

6,288,136

6,360,597

Mortgage servicing rights, at fair value

85,695

84,736

82,927

84,258

78,799

Premises and equipment, net

81,886

82,248

82,333

82,483

82,532

Other real estate owned and foreclosed assets, net

13,418

13,052

4,914

5,138

4,478

Goodwill

93,483

93,483

93,483

93,483

93,483

Core deposits and other intangible assets, net

5,650

6,228

6,806

7,434

8,866

Other assets

362,206

348,096

351,268

354,395

331,115

Total assets

$

8,495,437

$

8,435,861

$

8,216,458

$

8,097,387

$

8,138,487

Liabilities and Stockholders' Equity

Liabilities:

Deposits:

Noninterest-bearing accounts

$

1,674,497

$

1,706,678

$

1,574,736

$

1,541,158

$

1,554,762

Interest-bearing accounts:

Interest-bearing demand accounts

811,617

745,750

708,783

685,865

645,647

Savings and money market accounts

3,223,254

3,166,466

2,974,774

2,834,123

2,608,808

NOW accounts

42,559

52,005

39,806

45,539

41,234

Certificate of deposit accounts

1,353,488

1,429,265

1,576,140

1,565,575

1,799,429

Total deposits

7,105,415

7,100,164

6,874,239

6,672,260

6,649,880

Securities sold under agreements to repurchase

9,824

11,173

8,515

14,699

10,913

Federal Home Loan Bank advances

35,000

135,000

215,000

Subordinated debt, net

76,163

76,066

75,969

75,841

75,709

Other liabilities

176,522

153,056

154,440

158,221

152,900

Total liabilities

7,367,924

7,340,459

7,148,163

7,056,021

7,104,402

Stockholders' equity:

Preferred stock

Common stock

3

3

3

3

3

Additional paid-in capital

548,952

547,950

547,484

547,325

547,271

Retained earnings

606,279

583,105

556,719

533,150

516,800

Accumulated other comprehensive loss, net

(27,721

)

(35,656

)

(35,911

)

(39,112

)

(29,989

)

Total stockholders' equity

1,127,513

1,095,402

1,068,295

1,041,366

1,034,085

Total liabilities and stockholders' equity

$

8,495,437

$

8,435,861

$

8,216,458

$

8,097,387

$

8,138,487

Consolidated Capital Ratios as of:

September 30,

2025

June 30,

2025

March 31,

2025

December 31,

2024

September 30,

2024

Stockholders' equity to total assets

13.27

%

12.99

%

13.00

%

12.86

%

12.71

%

Tangible stockholders' equity to tangible assets 1

12.25

%

11.94

%

11.93

%

11.76

%

11.59

%

Tangible stockholders' equity to tangible assets reflecting net unrealized losses on HTM securities, net of tax 1, 2

12.21

%

11.90

%

11.89

%

11.71

%

11.56

%

Tier 1 leverage ratio

12.44

%

12.39

%

12.47

%

12.11

%

11.96

%

Common equity tier 1 risk-based capital ratio

13.79

%

13.78

%

13.26

%

13.18

%

13.06

%

Tier 1 risk-based capital ratio

13.79

%

13.78

%

13.26

%

13.18

%

13.06

%

Total risk-based capital ratio

15.81

%

15.94

%

15.52

%

15.42

%

15.25

%

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

For the nine months ended

September 30, 2025

September 30, 2024

September 30, 2025

September 30, 2024

(In thousands)

Average Balance

Average Yield/Rate

Average Balance

Average Yield/Rate

Average Balance

Average Yield/Rate

Average Balance

Average Yield/Rate

Interest Earning Assets

Loans 1

6,667,158

6.49

%

6,460,484

6.68

%

6,570,356

6.43

%

6,386,620

6.61

%

Investment securities

505,999

3.43

%

527,241

3.60

%

506,068

3.48

%

532,562

3.52

%

Interest-bearing cash and other assets

714,885

4.25

%

442,632

5.14

%

604,936

4.29

%

343,911

5.27

%

Total earning assets

7,888,042

6.09

%

7,430,357

6.37

%

7,681,360

6.07

%

7,263,093

6.32

%

Other assets

540,079

534,740

542,038

543,916

Total assets

$

8,428,121

$

7,965,097

$

8,223,398

$

7,807,009

Interest-bearing liabilities

Demand and NOW deposits

$

796,192

3.29

%

$

657,537

3.73

%

$

770,395

3.25

%

$

609,632

3.71

%

Savings deposits

391,444

0.59

%

411,526

0.71

%

397,745

0.58

%

415,687

0.70

%

Money market deposits

2,852,860

2.58

%

2,140,552

2.24

%

2,652,819

2.41

%

2,098,927

2.07

%

Certificates of deposits

1,397,371

3.64

%

1,800,502

4.56

%

1,482,529

3.77

%

1,812,839

4.63

%

Total deposits

5,437,867

2.81

%

5,010,117

3.14

%

5,303,488

2.78

%

4,937,085

3.10

%

Repurchase agreements

8,055

1.82

%

13,528

1.29

%

8,892

1.66

%

17,099

1.16

%

Total deposits and repurchase agreements

5,445,922

2.81

%

5,023,645

3.14

%

5,312,380

2.77

%

4,954,184

3.09

%

FHLB borrowings

%

135,641

5.58

%

10,491

4.61

%

125,799

5.62

%

Other long-term borrowings

76,117

8.41

%

75,654

6.54

%

76,017

7.02

%

75,522

6.61

%

Total interest-bearing liabilities

5,522,039

2.89

%

5,234,940

3.25

%

5,398,888

2.84

%

5,155,505

3.20

%

Noninterest-bearing deposits

1,642,346

1,568,685

1,587,670

1,529,793

Other liabilities

145,730

141,206

148,675

136,491

Stockholders' equity

1,118,006

1,020,266

1,088,165

985,220

Total liabilities and stockholders' equity

$

8,428,121

$

7,965,097

$

8,223,398

$

7,807,009

Net interest spread

3.20

%

3.12

%

3.23

%

3.12

%

Net interest margin

4.07

%

4.08

%

4.07

%

4.04

%

Net interest margin (on FTE basis) 2

4.12

%

4.13

%

4.13

%

4.11

%

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

September 30, 2025

June 30, 2025

March 31, 2025

December 31, 2024

September 30, 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

Loans 1

6,667,158

6.49

%

6,620,493

6.43

%

6,420,710

6.36

%

6,481,701

6.51

%

6,460,484

6.68

%

Investment securities

505,999

3.43

%

510,350

3.48

%

501,809

3.53

%

519,221

3.40

%

527,241

3.60

%

Interest-bearing cash and other assets

714,885

4.25

%

596,713

4.28

%

500,857

4.37

%

491,326

4.48

%

442,632

5.14

%

Total earning assets

7,888,042

6.09

%

7,727,556

6.07

%

7,423,376

6.03

%

7,492,248

6.16

%

7,430,357

6.37

%

Other assets

540,079

537,156

548,976

542,862

534,740

Total assets

$

8,428,121

$

8,264,712

$

7,972,352

$

8,035,110

$

7,965,097

Interest-bearing liabilities

Demand and NOW deposits

$

796,192

3.29

%

$

793,461

3.26

%

$

720,700

3.21

%

$

703,087

3.45

%

$

657,537

3.73

%

Savings deposits

391,444

0.59

%

401,093

0.58

%

400,801

0.58

%

404,762

0.64

%

411,526

0.71

%

Money market deposits

2,852,860

2.58

%

2,659,342

2.42

%

2,441,737

2.19

%

2,348,328

2.23

%

2,140,552

2.24

%

Certificates of deposits

1,397,371

3.64

%

1,504,235

3.76

%

1,547,634

3.91

%

1,589,721

4.08

%

1,800,502

4.56

%

Total deposits

5,437,867

2.81

%

5,358,131

2.78

%

5,110,872

2.73

%

5,045,898

2.85

%

5,010,117

3.14

%

Repurchase agreements

8,055

1.82

%

9,024

1.61

%

9,615

1.57

%

10,964

1.45

%

13,528

1.29

%

Total deposits and repurchase agreements

5,445,922

2.81

%

5,367,155

2.78

%

5,120,487

2.73

%

5,056,862

2.85

%

5,023,645

3.14

%

FHLB borrowings

%

2,308

4.72

%

29,489

4.60

%

121,957

5.02

%

135,641

5.58

%

Other long-term borrowings

76,117

8.41

%

76,025

6.19

%

75,907

6.43

%

75,778

6.41

%

75,654

6.54

%

Total interest-bearing liabilities

5,522,039

2.89

%

5,445,488

2.83

%

5,225,883

2.79

%

5,254,597

2.95

%

5,234,940

3.25

%

Noninterest-bearing deposits

1,642,346

1,587,302

1,532,150

1,581,571

1,568,685

Other liabilities

145,730

145,064

155,337

152,552

141,206

Stockholders' equity

1,118,006

1,086,858

1,058,982

1,046,390

1,020,266

Total liabilities and stockholders' equity

$

8,428,121

$

8,264,712

$

7,972,352

$

8,035,110

$

7,965,097

Net interest spread

3.20

%

3.24

%

3.24

%

3.21

%

3.12

%

Net interest margin

4.07

%

4.07

%

4.07

%

4.09

%

4.08

%

Net interest margin (on FTE basis) 2

4.12

%

4.13

%

4.13

%

4.15

%

4.13

%

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)

September 30,

2025

June 30,

2025

March 31,

2025

December 31,

2024

September 30,

2024

Consumer

Noninterest bearing deposit accounts

$

412,568

$

426,909

$

412,734

$

410,303

$

397,880

Interest-bearing deposit accounts:

Demand and NOW deposits

129,148

113,415

93,675

61,987

61,929

Savings deposits

314,953

322,672

330,489

326,916

331,811

Money market deposits

1,885,610

1,803,348

1,600,413

1,516,577

1,333,486

Certificates of deposits

869,077

937,439

1,065,839

1,069,704

1,247,348

Total interest-bearing deposit accounts

3,198,788

3,176,874

3,090,416

2,975,184

2,974,574

Total consumer deposits

$

3,611,356

$

3,603,783

$

3,503,150

$

3,385,487

$

3,372,454

Business

Noninterest bearing deposit accounts

$

1,261,929

$

1,279,769

$

1,162,002

$

1,130,855

$

1,156,882

Interest-bearing deposit accounts:

Demand and NOW deposits

725,028

684,340

654,914

669,417

624,952

Savings deposits

71,281

74,448

75,132

75,422

77,744

Money market deposits

951,410

965,998

968,740

915,208

865,767

Certificates of deposits

57,225

56,930

65,420

51,131

62,187

Total interest-bearing deposit accounts

1,804,944

1,781,716

1,764,206

1,711,178

1,630,650

Total business deposits

$

3,066,873

$

3,061,485

$

2,926,208

$

2,842,033

$

2,787,532

Wholesale deposits 1

$

427,186

$

434,896

$

444,881

$

444,740

$

489,894

Total deposits

$

7,105,415

$

7,100,164

$

6,874,239

$

6,672,260

$

6,649,880

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

Balance Sheet Ratios as of:

September 30,

2025

June 30,

2025

March 31,

2025

December 31,

2024

September 30,

2024

Cash to total assets 1

7.70

%

9.20

%

7.50

%

7.50

%

6.90

%

Loan to deposit ratio

94.0

%

91.6

%

94.3

%

95.6

%

96.9

%

Uninsured deposits to total deposits 2

36.2

%

37.0

%

35.2

%

34.8

%

32.7

%

Uninsured and uncollateralized deposits to total deposits 2

28.3

%

28.3

%

26.4

%

25.2

%

26.8

%

Wholesale deposits and borrowings to total liabilities 3

5.8

%

5.9

%

6.7

%

8.2

%

9.9

%

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)

September 30,

2025

June 30,

2025

March 31,

2025

December 31,

2024

September 30,

2024

Commercial and industrial 1

$

2,945,697

$

2,779,767

$

2,764,035

$

2,627,591

$

2,678,859

Commercial real estate:

Non-owner occupied

725,425

705,749

733,949

752,628

821,434

Owner occupied

668,172

660,334

677,341

700,867

698,398

Construction and land

343,803

383,969

386,056

362,677

333,457

Multifamily

183,504

134,520

85,239

94,355

95,125

Total commercial real estate

1,920,904

1,884,572

1,882,585

1,910,527

1,948,414

Residential real estate 2

1,209,742

1,226,760

1,195,714

1,180,610

1,172,459

Public Finance

516,247

524,441

551,252

554,784

536,776

Consumer

38,931

42,881

38,896

41,144

45,067

Other

50,108

48,645

51,526

61,701

62,181

Total loans, net of deferred costs, fees, premiums, and discounts

$

6,681,629

$

6,507,066

$

6,484,008

$

6,376,357

$

6,443,756

1 Loans to nondepository financial institutions are included within commercial and industrial. Prior period amounts have been reclassified to conform to the current presentation.

2 Includes 1-4 family residential construction.

Asset Quality:

As of and for the three months ended

As of and for the nine months ended

($ in thousands)

September 30,

2025

June 30,

2025

March 31,

2025

December 31,

2024

September 30,

2024

September 30,

2025

September 30,

2024

Net charge-offs (recoveries)

$

9,053

$

13,547

$

631

$

(462

)

$

1,401

$

23,231

$

20,839

Allowance for credit losses

$

84,040

$

82,993

$

91,790

$

88,221

$

83,159

$

84,040

$

83,159

Nonperforming loans, including nonaccrual loans, and accrual loans greater than 90 days past due

$

69,641

$

54,841

$

78,590

$

69,050

$

65,824

$

69,641

$

65,824

Nonperforming assets

$

83,059

$

67,893

$

83,504

$

74,188

$

70,302

$

83,059

$

70,302

Ratio of net charge-offs (recoveries) to average loans outstanding

0.55

%

0.83

%

0.04

%

(0.03

)%

0.09

%

0.48

%

0.44

%

Allowance for credit losses to total loans outstanding

1.26

%

1.28

%

1.42

%

1.38

%

1.29

%

1.26

%

1.29

%

Allowance for credit losses to total nonperforming loans

120.68

%

151.33

%

116.80

%

127.76

%

126.34

%

120.68

%

126.34

%

Nonperforming loans to total loans

1.04

%

0.84

%

1.21

%

1.08

%

1.02

%

1.04

%

1.02

%

Nonperforming assets to total assets

0.98

%

0.80

%

1.02

%

0.92

%

0.86

%

0.98

%

0.86

%

Non-GAAP Financial Measures and Reconciliations:

As of and for the three months ended

As of and for the nine months ended

($ in thousands, except share and per share amounts)

September 30,

2025

June 30,

2025

March 31,

2025

December 31,

2024

September 30,

2024

September 30,

2025

September 30,

2024

Tangible stockholders’ equity to tangible assets:

Total stockholders' equity (GAAP)

$

1,127,513

$

1,095,402

$

1,068,295

$

1,041,366

$

1,034,085

$

1,127,513

$

1,034,085

Less: Goodwill and other intangible assets

Goodwill

(93,483

)

(93,483

)

(93,483

)

(93,483

)

(93,483

)

(93,483

)

(93,483

)

Other intangible assets

(5,650

)

(6,228

)

(6,806

)

(7,434

)

(8,866

)

(5,650

)

(8,866

)

Tangible stockholders' equity (non-GAAP)

$

1,028,380

$

995,691

$

968,006

$

940,449

$

931,736

$

1,028,380

$

931,736

Total assets (GAAP)

$

8,495,437

$

8,435,861

$

8,216,458

$

8,097,387

$

8,138,487

$

8,495,437

$

8,138,487

Less: Goodwill and other intangible assets

Goodwill

(93,483

)

(93,483

)

(93,483

)

(93,483

)

(93,483

)

(93,483

)

(93,483

)

Other intangible assets

(5,650

)

(6,228

)

(6,806

)

(7,434

)

(8,866

)

(5,650

)

(8,866

)

Tangible assets (non-GAAP)

$

8,396,304

$

8,336,150

$

8,116,169

$

7,996,470

$

8,036,138

$

8,396,304

$

8,036,138

Total stockholders' equity to total assets (GAAP)

13.27

%

12.99

%

13.00

%

12.86

%

12.71

%

13.27

%

12.71

%

Less: Impact of goodwill and other intangible assets

(1.02

)%

(1.05

)%

(1.07

)%

(1.10

)%

(1.12

)%

(1.02

)%

(1.12

)%

Tangible stockholders' equity to tangible assets (non-GAAP)

12.25

%

11.94

%

11.93

%

11.76

%

11.59

%

12.25

%

11.59

%

Tangible stockholders’ equity to tangible assets, reflecting net unrealized losses on HTM securities, net of tax:

Tangible stockholders' equity (non-GAAP)

$

1,028,380

$

995,691

$

968,006

$

940,449

$

931,736

$

1,028,380

$

931,736

Less: Net unrealized losses on HTM securities, net of tax

(3,432

)

(4,238

)

(3,803

)

(4,292

)

(2,852

)

(3,432

)

(2,852

)

Tangible stockholders’ equity less net unrealized losses on HTM securities, net of tax (non-GAAP)

$

1,024,948

$

991,453

$

964,203

$

936,157

$

928,884

$

1,024,948

$

928,884

Tangible assets (non-GAAP)

$

8,396,304

$

8,336,150

$

8,116,169

$

7,996,470

$

8,036,138

$

8,396,304

$

8,036,138

Less: Net unrealized losses on HTM securities, net of tax

(3,432

)

(4,238

)

(3,803

)

(4,292

)

(2,852

)

(3,432

)

(2,852

)

Tangible assets less net unrealized losses on HTM securities, net of tax (non-GAAP)

$

8,392,872

$

8,331,912

$

8,112,366

$

7,992,178

$

8,033,286

$

8,392,872

$

8,033,286

Tangible stockholders' equity to tangible assets (non-GAAP)

12.25

%

11.94

%

11.93

%

11.76

%

11.59

%

12.25

%

11.59

%

Less: Net unrealized losses on HTM securities, net of tax

(0.04

)%

(0.04

)%

(0.04

)%

(0.05

)%

(0.03

)%

(0.04

)%

(0.03

)%

Tangible stockholders’ equity to tangible assets reflecting net unrealized losses on HTM securities, net of tax (non-GAAP)

12.21

%

11.90

%

11.89

%

11.71

%

11.56

%

12.21

%

11.56

%

Tangible book value per share:

Total stockholders' equity (GAAP)

$

1,127,513

$

1,095,402

$

1,068,295

$

1,041,366

$

1,034,085

$

1,127,513

$

1,034,085

Tangible stockholders' equity (non-GAAP)

$

1,028,380

$

995,691

$

968,006

$

940,449

$

931,736

$

1,028,380

$

931,736

Total shares outstanding

27,854,764

27,834,525

27,753,918

27,709,679

27,665,918

27,854,764

27,665,918

Book value per share (GAAP)

$

40.48

$

39.35

$

38.49

$

37.58

$

37.38

$

40.48

$

37.38

Tangible book value per share (non-GAAP)

$

36.92

$

35.77

$

34.88

$

33.94

$

33.68

$

36.92

$

33.68

Adjusted net income:

Net income (GAAP)

$

23,174

$

26,386

$

23,569

$

16,350

$

22,422

$

73,129

$

59,278

Add: Non-recurring adjustments:

Terminated merger related expenses, net of tax

5,799

1,233

4,150

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

4,150

Adjusted net income (non-GAAP)

$

23,174

$

26,386

$

23,569

$

24,316

$

23,655

$

73,129

$

63,428

Adjusted diluted earnings per share:

Diluted earnings per share (GAAP)

$

0.82

$

0.93

$

0.83

$

0.58

$

0.79

$

2.59

$

2.12

Add: Impact of non-recurring adjustments

Terminated merger related expenses, net of tax

0.21

0.05

0.15

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)

$

0.82

$

0.93

$

0.83

$

0.86

$

0.84

$

2.59

$

2.27

Adjusted return on average total assets:

Return on average total assets (ROAA) (GAAP)

1.09

%

1.28

%

1.20

%

0.81

%

1.12

%

1.19

%

1.01

%

Add: Impact of non-recurring adjustments

Terminated merger related expenses, net of tax

%

%

%

0.28

%

0.06

%

%

0.08

%

Write-off of Guardian Mortgage tradename, net of tax

%

%

%

0.03

%

%

%

%

Disposal of ATMs, net of tax

%

%

%

0.08

%

%

%

%

Adjusted ROAA (non-GAAP)

1.09

%

1.28

%

1.20

%

1.20

%

1.18

%

1.19

%

1.09

%

Adjusted return on average stockholders’ equity:

Return on average stockholders' equity (ROACE) (GAAP)

8.22

%

9.74

%

9.03

%

6.22

%

8.74

%

8.99

%

8.04

%

Add: Impact of non-recurring adjustments

Terminated merger related expenses, net of tax

%

%

%

2.19

%

0.48

%

%

0.56

%

Write-off of Guardian Mortgage tradename, net of tax

%

%

%

0.24

%

%

%

%

Disposal of ATMs, net of tax

%

%

%

0.59

%

%

%

%

Adjusted ROACE (non-GAAP)

8.22

%

9.74

%

9.03

%

9.24

%

9.22

%

8.99

%

8.60

%

Return on average tangible stockholders’ equity

Return on average stockholders’ equity (ROACE) (GAAP)

8.22

%

9.74

%

9.03

%

6.22

%

8.74

%

8.99

%

8.04

%

Add: Impact from goodwill and other intangible assets

Goodwill

0.81

%

0.98

%

0.94

%

0.67

%

0.98

%

0.90

%

0.94

%

Other intangible assets

0.17

%

0.19

%

0.21

%

0.47

%

0.22

%

0.19

%

0.25

%

Return on average tangible stockholders’ equity (ROATCE) (non-GAAP)

9.20

%

10.91

%

10.18

%

7.36

%

9.94

%

10.08

%

9.23

%

Adjusted return on average tangible stockholders’ equity:

Return on average tangible stockholders' equity (ROATCE) (non-GAAP)

9.20

%

10.91

%

10.18

%

7.36

%

9.94

%

10.08

%

9.23

%

Add: Impact of non-recurring adjustments

Terminated merger related expenses, net of tax

%

%

%

2.45

%

0.54

%

%

0.63

%

Write-off of Guardian Mortgage tradename, net of tax

%

%

%

0.26

%

%

%

%

Disposal of ATMs, net of tax

%

%

%

0.65

%

%

%

%

Adjusted ROATCE (non-GAAP)

9.20

%

10.91

%

10.18

%

10.72

%

10.48

%

10.08

%

9.86

%

Adjusted total noninterest expense:

Total noninterest expense (GAAP)

$

68,901

$

68,110

$

62,722

$

73,673

$

64,664

$

199,733

$

190,367

Less: Non-recurring adjustments:

Terminated merger related expenses

(8,010

)

(1,633

)

(5,168

)

Write-off of Guardian Mortgage trade name

(828

)

Disposal of ATMs

(2,042

)

Total adjustments

(10,880

)

(1,633

)

(5,168

)

Adjusted total noninterest expense (non-GAAP)

$

68,901

$

68,110

$

62,722

$

62,793

$

63,031

$

199,733

$

185,199

Adjusted efficiency ratio:

Efficiency ratio (GAAP)

64.22

%

64.52

%

65.19

%

74.66

%

65.83

%

64.62

%

66.10

%

Less: Impact of non-recurring adjustments

Terminated merger related expenses

%

%

%

(8.12

)%

(1.67

)%

%

(1.80

)%

Write-off of Guardian Mortgage tradename

%

%

%

(0.84

)%

%

%

%

Disposal of ATMs

%

%

%

(2.07

)%

%

%

%

Adjusted efficiency ratio (non-GAAP)

64.22

%

64.52

%

65.19

%

63.63

%

64.16

%

64.62

%

64.30

%

Fully tax equivalent (“FTE”) net interest income and net interest margin:

Net interest income (GAAP)

$

80,953

$

78,499

$

74,478

$

77,047

$

76,158

$

233,930

$

219,863

Gross income effect of tax exempt income

1,225

1,204

1,192

1,161

1,132

3,621

3,606

FTE net interest income (non-GAAP)

$

82,178

$

79,703

$

75,670

$

78,208

$

77,290

$

237,551

$

223,469

Average earning assets

$

7,888,042

$

7,727,556

$

7,423,376

$

7,492,248

$

7,430,357

$

7,681,360

$

7,263,093

Net interest margin

4.07

%

4.07

%

4.07

%

4.09

%

4.08

%

4.07

%

4.04

%

Net interest margin on FTE basis (non-GAAP)

4.12

%

4.13

%

4.13

%

4.15

%

4.13

%

4.13

%

4.11

%