FirstSun Capital Bancorp Reports First Quarter 2022 Results

April 28, 2022

First Quarter 2022 Highlights:

  • Net income of $7.7 million, $0.41 per diluted share
  • Return on average assets of 0.54%
  • Return on average equity of 5.85%
  • Loan growth of 27.5% annualized (excluding PPP loan balances, 30.9% annualized)
  • 36.5% fee revenue to total revenue mix

FirstSun Capital Bancorp (“FirstSun”) reported net income of $7.7 million for the first quarter of 2022, compared to net income of $8.8 million in the prior quarter and $14.3 million in the first quarter of 2021. Earnings per diluted share was $0.41 for the first quarter 2022, compared to $0.47 in the prior quarter and $0.76 in the first quarter of 2021.

Neal Arnold, FirstSun’s President and Chief Executive Officer, commented, “We remain focused on continuing to expand our presence in our growth markets and are pleased with our progress this quarter, particularly in our loan growth and diversified revenue mix. The macroeconomic environment as a whole is impacting the banking industry and certainly mortgage banking trends, however, we believe the overall economic diversity of the geographic regions we are operating in positions us well moving forward. Our team has been actively preparing for our merger transaction with Pioneer Bancshares, Inc. and following its closing on April 1, 2022, we are now working on integrating the business, including a planned system conversion in the second quarter. We believe our merger with Pioneer will allow us to continue to expand our business, particularly in our growth markets in Texas. We welcome our new team members from Pioneer and look forward to our future growth.”

First Quarter 2022 Results

Net income totaled $7.7 million, or $0.41 per diluted share, during the first quarter of 2022, compared to $8.8 million, or $0.47 per diluted share, during the prior quarter. The return on average assets was 0.54% in the first quarter of 2022, compared to 0.62% in the prior quarter and 1.13% in the first quarter of 2021, and the return on average equity was 5.85% in the first quarter of 2022, compared to 6.69% in the prior quarter and 11.46% in the first quarter of 2021.

Net Interest Income and Net Interest Margin

Net interest income totaled $41.3 million during the first quarter of 2022, an increase of $0.8 million compared to the prior quarter. Our net interest margin increased nine basis points to 3.08% compared to the prior quarter. Results in the first quarter of 2022, compared to the prior quarter, were driven by an increase of 11 basis points in yield on earning assets, partially offset by a decrease in average earning assets of $54.9 million, and an increase of two basis points in the cost of interest bearing liabilities. Average loans grew by $285.0 million, offset by a decline in investment securities of $9.0 million and interest-bearing cash balances of $294.0 million in the first quarter of 2022, compared to the prior quarter. Loan yield decreased by 16 basis points in the first quarter of 2022, compared to the prior quarter, primarily due to a reduction in fees from loan prepayments and a reduction in fees resulting from PPP loan forgiveness. Our total cost of deposits decreased by three basis points to 0.19% in the first quarter of 2022, compared to the prior quarter.

Asset Quality and Provision for Loan Losses

The provision for loan losses totaled $3.7 million during the first quarter of 2022, an increase of $2.5 million compared to the prior quarter. The increase in the provision for loan losses was due to loan growth, primarily in commercial and industrial loans and residential real estate loans. Net charge-offs during the first quarter of 2022 were $0.7 million, or a ratio of net charge-offs to average loans of 0.07% annualized, compared to net charge-offs of $1.6 million, or a ratio of net charge-offs to average loans of 0.16% annualized, in the prior quarter. The allowance for loan losses as a percentage of total loans totaled 1.17% at March 31, 2022, compared to 1.18% at December 31, 2021. The allowance for loan losses as a percentage of total loans, excluding PPP loans, a non-GAAP financial measure, totaled 1.18% at March 31, 2022, compared to 1.20% at December 31, 2021. The ratio of nonperforming assets to total assets was 0.64% at March 31, 2022, compared to 0.71% at December 31, 2021, and 0.88% at March 31, 2021.

Noninterest Income

Noninterest income totaled $23.7 million during the first quarter of 2022, a decrease of $5.7 million from the prior quarter. Mortgage banking income decreased $3.7 million during the first quarter of 2022 from the prior quarter, due primarily to a decline in loan sales and continuing margin compression and its impact on loan sale gains and the pipeline valuation. Total mortgage loan originations declined by $32.9 million, or 6.2%, in the first quarter of 2022 from the prior quarter, with mortgage loan refinance volumes declining by $18.9 million. In the first quarter of 2022, other noninterest income decreased $2.1 million from the prior quarter, to $0.8 million, primarily due to decreases in customer accommodation interest rate swap fees and loan syndication fee income. Noninterest income as a percentage of total revenue totaled 36.5% in the first quarter of 2022, compared to 42.1% in the prior quarter.

Noninterest Expense

Noninterest expense totaled $52.5 million during the first quarter of 2022, a decrease of $5.8 million from the prior quarter, primarily driven by a decrease in salaries and benefits expense in both our banking and mortgage segments. Noninterest expenses for the first quarter of 2022 also included $0.3 million in merger expenses related to the transaction with Pioneer Bancshares, Inc., compared to $1.1 million in the prior quarter. Merger expenses reduced diluted earnings per share by $0.01 for the first quarter of 2022 compared to $0.05 in the prior quarter.

Tax Rate

The effective tax rate was 13.0% in the first quarter of 2022, compared to 14.7% in the prior quarter.

Loans

Total loans were $4.3 billion at March 31, 2022, compared to $4.0 billion at December 31, 2021. Excluding PPP loan balances, loans grew $306.7 million in the first quarter of 2022, or 30.9% on an annualized basis from the prior quarter, resulting primarily from growth in commercial and industrial and residential real estate balances.

Deposits

Average deposits decreased $6.1 million in the first quarter of 2022, or (0.5)% on an annualized basis, to $4.9 billion, compared to the prior quarter. Noninterest-bearing deposit accounts represented 33.6% of total deposits at March 31, 2022 and the loan-to-deposit ratio was 87.2% at March 31, 2022.

Capital

Capital ratios remain strong and above “well-capitalized” thresholds. As of March 31, 2022, our common equity tier 1 risk-based capital ratio was 9.27%, total risk-based capital ratio was 11.74% and tier 1 leverage ratio was 8.42%. Book value per common share was $28.10 at March 31, 2022, a decrease of $0.46 from December 31, 2021. Tangible book value per common share, a non-GAAP financial measure, was $25.87 at March 31, 2022, a decrease of $0.44 from December 31, 2021. The decline in the book value per common share and tangible book value per common share at March 31, 2022 relates to a decline in accumulated other comprehensive income (loss), net, for unrealized losses in our available-for-sale securities portfolio resulting from the rising interest rate environment.

Non-GAAP Financial Measures

This press release contains financial information and performance 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 disclosures 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 types of non-GAAP measures used in this press release:

  • Tangible stockholders’ equity
  • Tangible assets
  • Tangible stockholders’ equity to tangible assets
  • Tangible book value per common share
  • Total loans, excluding PPP loans
  • Allowance for loan losses to total loans outstanding, excluding PPP loans
  • Fully tax equivalent (FTE) net interest income
  • Net interest margin on an FTE basis

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.

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 $5.7 billion as of March 31, 2022. On April 1, 2022, we completed our merger with Pioneer Bancshares, Inc.

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.

Cautionary Note Regarding Forward-Looking Statements

This press release contains ”forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995 regarding the financial condition, results of operations, business plans and the future performance of FirstSun. Words such as “anticipates,” “believes,” “estimates,” “expects,” “forecasts,” “intends,” “plans,” “projects,” “may,” “will,” “should,” “would,” “could,” “look forward” and other similar expressions are intended to identify these forward-looking statements. Forward-looking statements are not based on historical facts but instead represent management’s expectations and assumptions regarding FirstSun’s business, the economy and other future conditions. Such statements involve inherent uncertainties, risks and changes in circumstances that are difficult to predict. As such, FirstSun’s actual results may differ materially from those contemplated by forward-looking statements. While there can be no assurance that any list of risks and uncertainties or risk factors is complete, important factors that could cause actual results to differ materially from those contemplated by forward-looking statements include the following, without limitation, as well as the risks and uncertainties more fully discussed under the “Risk Factors” section in our Annual Report on Form 10-K that we filed with the SEC on March 25, 2022 and in FirstSun’s subsequent filings with the Securities and Exchange Commission:

  • the possibility that the anticipated benefits of the merger with Pioneer Bancshares, Inc. that closed on April 1, 2022, including anticipated cost savings and strategic gains, are not realized when expected or at all, including as a result of the impact of, or problems arising from, the integration of the two companies or as a result of the strength of the economy, competitive factors in the areas where FirstSun and Pioneer do business or as a result of other unexpected factors or events;
  • the continuing impact of COVID-19 and its variants on FirstSun’s business, including the impact of the actions taken by governmental authorities to try and contain the virus or address the impact of the virus on the economy, and the resulting effect of these items on each party’s operations, liquidity and capital position, and on the financial condition of each party’s borrowers and other customers;
  • the inability to sustain revenue and earnings growth;
  • the inability to efficiently manage operating expenses;
  • the impact of competition with other financial institutions, including pricing pressures and the resulting impact on FirstSun’s results, including as a result of compression to net interest margin;
  • deterioration in the financial condition of borrowers resulting in significant increases in loan losses and provisions for those losses;
  • changes in loan underwriting, credit review or loss reserve policies associated with economic conditions, examination conclusions, or regulatory developments;
  • adverse changes in asset quality and credit risk; and
  • the potential effects of events beyond our control that may have a destabilizing effect on financial markets and the economy, such as epidemics and pandemics, war or terrorist activities, disruptions in our customers’ supply chains, disruptions in transportation, essential utility outages or trade disputes and related tariffs.

Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date they are made. Except to the extent required by applicable law or regulation, FirstSun undertakes no obligation to revise or update any forward-looking statements.

Summary Data:

 

 

As of and for the quarter ended

($ in thousands, except per share amounts)

 

March 31, 2022

 

December 31, 2021

 

March 31, 2021

 

 

 

 

 

 

 

Net interest income

 

$

41,285

 

 

$

40,451

 

 

$

38,417

 

Provision for (benefit from) loan losses

 

 

3,700

 

 

 

1,250

 

 

 

(350

)

Noninterest income

 

 

23,693

 

 

 

29,396

 

 

 

33,881

 

Noninterest expense

 

 

52,467

 

 

 

58,261

 

 

 

55,180

 

Income before income taxes

 

 

8,811

 

 

 

10,336

 

 

 

17,468

 

Provision for income taxes

 

 

1,142

 

 

 

1,519

 

 

 

3,130

 

Net income

 

 

7,669

 

 

 

8,817

 

 

 

14,338

 

 

 

 

 

 

 

 

Diluted earnings per share

 

$

0.41

 

 

$

0.47

 

 

$

0.76

 

Return on average assets

 

 

0.54

%

 

 

0.62

%

 

 

1.13

%

Return on average equity

 

 

5.85

%

 

 

6.69

%

 

 

11.46

%

Net interest margin

 

 

3.08

%

 

 

2.99

%

 

 

3.21

%

Net interest margin (FTE basis)1

 

 

3.17

%

 

 

3.09

%

 

 

3.33

%

Efficiency ratio

 

 

80.75

%

 

 

83.41

%

 

 

76.32

%

Fee revenue to total revenue

 

 

36.46

%

 

 

42.09

%

 

 

46.86

%

 

 

 

 

 

 

 

Total assets

 

$

5,733,748

 

 

$

5,666,814

 

 

$

5,321,103

 

Total loans held-for-sale

 

 

57,700

 

 

 

103,939

 

 

 

153,071

 

Total loans held-for-investment

 

 

4,315,031

 

 

 

4,037,123

 

 

 

3,676,756

 

Total deposits

 

 

4,946,482

 

 

 

4,854,948

 

 

 

4,478,147

 

Total stockholders' equity

 

 

515,541

 

 

 

524,038

 

 

 

497,861

 

Period end loan-to-deposit ratio2

 

 

87.23

%

 

 

83.15

%

 

 

82.10

%

Book value per common share

 

 

28.10

 

 

 

28.56

 

 

 

27.17

 

Tangible book value per common share¹

 

 

25.87

 

 

 

26.31

 

 

 

24.86

 

_______________________________
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 Loans are inclusive of loans held-for-sale and loans held-for-investment.

Consolidated Condensed Statements of Income (Unaudited):

 

 

As of and for the quarter ended

($ in thousands, except per share amounts)

 

March 31, 2022

 

December 31, 2021

 

March 31, 2021

 

 

 

 

 

 

 

Total interest income

 

$

44,661

 

$

43,578

 

$

42,446

 

Total interest expense

 

 

3,376

 

 

3,127

 

 

4,029

 

Net interest income

 

 

41,285

 

 

40,451

 

 

38,417

 

Provision for (benefit from) loan losses

 

 

3,700

 

 

1,250

 

 

(350

)

Net interest income after provision for loan losses

 

 

37,585

 

 

39,201

 

 

38,767

 

Noninterest income:

 

 

 

 

 

 

Service charges on deposits

 

 

3,925

 

 

3,845

 

 

2,543

 

Credit and debit card fees

 

 

2,415

 

 

2,456

 

 

2,124

 

Trust and investment advisory fees

 

 

1,947

 

 

1,924

 

 

1,905

 

Mortgage banking income, net

 

 

14,561

 

 

18,266

 

 

25,057

 

Other noninterest income

 

 

845

 

 

2,905

 

 

2,252

 

Total noninterest income

 

 

23,693

 

 

29,396

 

 

33,881

 

Noninterest expense:

 

 

 

 

 

 

Salaries and benefits

 

 

34,225

 

 

38,797

 

 

38,619

 

Occupancy and equipment

 

 

6,833

 

 

6,698

 

 

6,697

 

Amortization of intangible assets

 

 

327

 

 

355

 

 

354

 

Merger related expenses

 

 

303

 

 

1,101

 

 

 

Other noninterest expenses

 

 

10,779

 

 

11,310

 

 

9,510

 

Total noninterest expense

 

 

52,467

 

 

58,261

 

 

55,180

 

Income before income taxes

 

 

8,811

 

 

10,336

 

 

17,468

 

Provision for income taxes

 

 

1,142

 

 

1,519

 

 

3,130

 

Net income

 

$

7,669

 

$

8,817

 

$

14,338

 

Earnings per share - basic

 

$

0.42

 

$

0.48

 

$

0.78

 

Earnings per share - diluted

 

$

0.41

 

$

0.47

 

$

0.76

 

Consolidated Condensed Balance Sheets as of (Unaudited):

($ in thousands)

 

March 31, 2022

 

December 31, 2021

 

March 31, 2021

Assets

 

 

 

 

 

 

Cash and cash equivalents

 

$

487,689

 

 

$

668,462

 

 

$

725,515

 

Securities available-for-sale, at fair value

 

 

556,723

 

 

 

572,501

 

 

 

476,048

 

Securities held-to-maturity

 

 

16,799

 

 

 

18,007

 

 

 

24,594

 

Loans held-for-sale, at fair value

 

 

57,700

 

 

 

103,939

 

 

 

153,071

 

Loans

 

 

4,315,031

 

 

 

4,037,123

 

 

 

3,676,756

 

Allowance for loan losses

 

 

(50,509

)

 

 

(47,547

)

 

 

(47,214

)

Loans, net

 

 

4,264,522

 

 

 

3,989,576

 

 

 

3,629,542

 

 

 

 

 

 

 

 

Mortgage servicing rights, at fair value

 

 

60,481

 

 

 

47,392

 

 

 

39,342

 

Premises and equipment, net

 

 

52,198

 

 

 

53,147

 

 

 

55,756

 

Other real estate owned and foreclosed assets, net

 

 

5,162

 

 

 

5,487

 

 

 

3,354

 

Goodwill

 

 

33,050

 

 

 

33,050

 

 

 

33,050

 

Intangible assets, net

 

 

7,923

 

 

 

8,250

 

 

 

9,313

 

All other assets

 

 

191,501

 

 

 

167,003

 

 

 

171,518

 

Total assets

 

$

5,733,748

 

 

$

5,666,814

 

 

$

5,321,103

 

 

 

 

 

 

 

 

Liabilities and Stockholders' Equity

 

 

 

 

 

 

Liabilities:

 

 

 

 

 

 

Deposits:

 

 

 

 

 

 

Noninterest-bearing demand deposit accounts

 

$

1,662,980

 

 

$

1,566,113

 

 

$

1,226,723

 

Interest-bearing deposit accounts:

 

 

 

 

 

 

Interest-bearing demand accounts

 

 

155,388

 

 

 

187,712

 

 

 

216,030

 

Savings accounts and money market accounts

 

 

2,742,393

 

 

 

2,757,882

 

 

 

2,577,206

 

NOW accounts

 

 

74,106

 

 

 

19,496

 

 

 

100,864

 

Certificate of deposit accounts

 

 

311,615

 

 

 

323,745

 

 

 

357,324

 

Total deposits

 

 

4,946,482

 

 

 

4,854,948

 

 

 

4,478,147

 

 

 

 

 

 

 

 

Securities sold under agreements to repurchase

 

 

69,627

 

 

 

92,093

 

 

 

151,243

 

Federal Home Loan Bank advances

 

 

40,000

 

 

 

40,000

 

 

 

40,000

 

Other borrowings

 

 

87,799

 

 

 

69,458

 

 

 

68,637

 

Other liabilities

 

 

74,299

 

 

 

86,277

 

 

 

85,215

 

Total liabilities

 

 

5,218,207

 

 

 

5,142,776

 

 

 

4,823,242

 

 

 

 

 

 

 

 

Stockholders' equity:

 

 

 

 

 

 

Preferred stock

 

 

 

 

 

 

 

 

 

Common stock

 

 

2

 

 

 

2

 

 

 

2

 

Additional paid-in capital

 

 

262,071

 

 

 

261,905

 

 

 

259,940

 

Treasury stock

 

 

(38,148

)

 

 

(38,148

)

 

 

(38,148

)

Retained earnings

 

 

306,284

 

 

 

298,615

 

 

 

269,789

 

Accumulated other comprehensive (loss) income, net

 

 

(14,668

)

 

 

1,664

 

 

 

6,278

 

Total stockholders' equity

 

 

515,541

 

 

 

524,038

 

 

 

497,861

 

Total liabilities and stockholders' equity

 

$

5,733,748

 

 

$

5,666,814

 

 

$

5,321,103

 

Share Data as of and for the periods ended:

 

 

As of and for the quarter ended

 

 

March 31, 2022

 

December 31, 2021

 

March 31, 2021

 

 

 

 

 

 

 

Weighted average common shares outstanding, basic

 

 

18,346,288

 

 

18,322,194

 

 

18,321,659

Weighted average common shares outstanding, diluted

 

 

18,899,852

 

 

18,836,918

 

 

18,784,365

Period end common shares outstanding

 

 

18,346,288

 

 

18,346,288

 

 

18,321,659

Book value per common share

 

$

28.10

 

$

28.56

 

$

27.17

Tangible book value per common share3

 

$

25.87

 

$

26.31

 

$

24.86

_______________________________
3 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.

Consolidated Capital Ratios as of:

 

 

March 31, 2022

 

December 31, 2021

 

March 31, 2021

 

 

 

 

 

 

 

Stockholders' equity to total assets

 

8.99

%

 

9.25

%

 

9.36

%

Tangible equity to tangible assets

 

8.34

%

 

8.58

%

 

8.63

%

Tier 1 leverage ratio

 

8.42

%

 

8.24

%

 

8.62

%

Common equity tier 1 risk-based capital ratio

 

9.27

%

 

9.70

%

 

10.38

%

Tier 1 risk-based capital ratio

 

9.27

%

 

9.70

%

 

10.38

%

Total risk-based capital ratio

 

11.74

%

 

11.76

%

 

12.72

%

Summary of Net Interest Margin:

 

 

For the quarter ended
March 31, 2022

 

For the quarter ended
December 31, 2021

 

For the quarter ended
March 31, 2021

(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

 

$

60,895

 

$

694

 

 

4.56

%

 

$

97,934

 

$

793

 

 

3.24

%

 

$

150,318

 

$

1,103

 

 

2.98

%

Loans held-for-investment4

 

 

4,123,920

 

 

41,164

 

 

3.99

%

 

 

3,838,871

 

 

39,830

 

 

4.15

%

 

 

3,767,317

 

 

39,156

 

 

4.22

%

Investment securities

 

 

582,333

 

 

2,275

 

 

1.56

%

 

 

591,289

 

 

2,333

 

 

1.58

%

 

 

497,877

 

 

1,815

 

 

1.48

%

Interest-bearing cash and other assets

 

 

592,478

 

 

528

 

 

0.36

%

 

 

886,472

 

 

622

 

 

0.28

%

 

 

379,695

 

 

372

 

 

0.40

%

Total earning assets

 

 

5,359,626

 

 

44,661

 

 

3.33

%

 

 

5,414,566

 

 

43,578

 

 

3.22

%

 

 

4,795,207

 

 

42,446

 

 

3.59

%

Other assets

 

 

314,043

 

 

 

 

 

 

291,934

 

 

 

 

 

 

280,335

 

 

 

 

Total assets

 

$

5,673,669

 

 

 

 

 

$

5,706,500

 

 

 

 

 

$

5,075,542

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest-bearing liabilities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Demand and NOW deposits

 

$

223,020

 

$

124

 

 

0.22

%

 

$

203,416

 

$

120

 

 

0.24

%

 

$

256,893

 

$

211

 

 

0.33

%

Savings deposits

 

 

468,713

 

 

91

 

 

0.08

%

 

 

458,657

 

 

97

 

 

0.08

%

 

 

456,926

 

 

120

 

 

0.13

%

Money market deposits

 

 

2,306,638

 

 

840

 

 

0.15

%

 

 

2,282,755

 

 

987

 

 

0.17

%

 

 

2,049,918

 

 

1,131

 

 

0.22

%

Certificates of deposits

 

 

317,948

 

 

519

 

 

0.65

%

 

 

326,440

 

 

609

 

 

0.75

%

 

 

361,656

 

 

942

 

 

1.06

%

Total deposits

 

 

3,316,319

 

 

1,574

 

 

0.19

%

 

 

3,271,268

 

 

1,813

 

 

0.22

%

 

 

3,125,393

 

 

2,404

 

 

0.31

%

Repurchase agreements

 

 

71,425

 

 

8

 

 

0.04

%

 

 

109,319

 

 

10

 

 

0.04

%

 

 

130,008

 

 

18

 

 

0.06

%

Total deposits and repurchase agreements

 

 

3,387,744

 

 

1,582

 

 

0.19

%

 

 

3,380,587

 

 

1,823

 

 

0.22

%

 

 

3,255,401

 

 

2,422

 

 

0.30

%

FHLB borrowings

 

 

40,229

 

 

148

 

 

1.48

%

 

 

40,000

 

 

151

 

 

1.51

%

 

 

50,308

 

 

457

 

 

3.69

%

Other long-term borrowings

 

 

86,191

 

 

1,646

 

 

7.63

%

 

 

69,306

 

 

1,153

 

 

6.65

%

 

 

68,509

 

 

1,150

 

 

6.80

%

Total interest-bearing liabilities

 

 

3,514,164

 

 

3,376

 

 

0.38

%

 

 

3,489,893

 

 

3,127

 

 

0.36

%

 

 

3,374,218

 

 

4,029

 

 

0.48

%

Noninterest-bearing deposits

 

 

1,566,088

 

 

 

 

 

 

1,617,278

 

 

 

 

 

 

1,117,388

 

 

 

 

Other liabilities

 

 

68,999

 

 

 

 

 

 

71,862

 

 

 

 

 

 

83,374

 

 

 

 

Stockholders' equity

 

 

524,418

 

 

 

 

 

 

527,467

 

 

 

 

 

 

500,562

 

 

 

 

Total liabilities and stockholders' equity

 

$

5,673,669

 

 

 

 

 

$

5,706,500

 

 

 

 

 

$

5,075,542

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net interest income

 

 

 

$

41,285

 

 

 

 

 

 

$

40,451

 

 

 

 

 

 

$

38,417

 

 

 

Net interest spread

 

 

 

 

2.95

%

 

 

 

 

 

 

2.86

%

 

 

 

 

 

 

3.11

%

 

 

Net interest margin

 

 

 

 

3.08

%

 

 

 

 

 

 

2.99

%

 

 

 

 

 

 

3.21

%

 

 

Net interest margin (on an FTE basis)5

 

 

 

 

3.17

%

 

 

 

 

 

 

3.09

%

 

 

 

 

 

 

3.33

%

 

 

_______________________________
4 Includes nonaccrual loans.
5 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.

Loan Portfolio

($ in thousands)

 

March 31, 2022

 

December 31, 2021

 

March 31, 2022
vs
December 31, 2021
% change

 

March 31, 2021

 

March 31, 2022
vs
March 31, 2021
% change

 

 

 

 

 

 

 

 

 

 

 

Commercial

 

$

2,515,203

 

$

2,407,888

 

4.5

%

 

$

2,075,023

 

21.2

%

Commercial real estate

 

 

1,214,505

 

 

1,174,242

 

3.4

%

 

 

1,125,360

 

7.9

%

Residential real estate

 

 

567,342

 

 

437,017

 

29.8

%

 

 

462,809

 

22.6

%

Consumer

 

 

17,981

 

 

17,976

 

%

 

 

13,564

 

32.6

%

Total loans held-for-investment

 

$

4,315,031

 

$

4,037,123

 

6.9

%

 

$

3,676,756

 

17.4

%

Asset Quality:

 

 

As of and for the quarter ended

($ in thousands)

 

March 31, 2022

 

December 31, 2021

 

March 31, 2021

 

 

 

 

 

 

 

Net charge-offs

 

$

738

 

 

$

1,571

 

 

$

202

 

Allowance for loan losses

 

$

50,509

 

 

$

47,547

 

 

$

47,214

 

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

 

$

31,367

 

 

$

34,838

 

 

$

43,386

 

Nonperforming assets

 

$

36,529

 

 

$

40,325

 

 

$

46,740

 

Ratio of net charge-offs to average loans outstanding

 

 

0.07

%

 

 

0.16

%

 

 

0.02

%

Allowance for loan losses to total loans outstanding

 

 

1.17

%

 

 

1.18

%

 

 

1.28

%

Allowance for loan losses to total loans outstanding, excluding PPP loans

 

 

1.18

%

 

 

1.20

%

 

 

1.38

%

Allowance for loan losses to total nonperforming loans

 

 

161.03

%

 

 

136.48

%

 

 

108.82

%

Nonperforming loans to total loans

 

 

0.73

%

 

 

0.86

%

 

 

1.18

%

Nonperforming assets to total assets

 

 

0.64

%

 

 

0.71

%

 

 

0.88

%

Non-GAAP Financial Measures and Reconciliations:

Tangible stockholders’ equity, tangible assets, and tangible book value per common share:

Tangible stockholders’ equity as of:

($ in thousands)

 

March 31, 2022

 

December 31, 2021

 

March 31, 2021

 

 

 

 

 

 

 

Total stockholders' equity (GAAP)

 

$

515,541

 

 

$

524,038

 

 

$

497,861

 

Less: Goodwill and other intangible assets

 

 

 

 

 

 

Goodwill

 

 

(33,050

)

 

 

(33,050

)

 

 

(33,050

)

Other intangible assets

 

 

(7,923

)

 

 

(8,250

)

 

 

(9,313

)

Total tangible stockholders' equity (non-GAAP)

 

$

474,568

 

 

$

482,738

 

 

$

455,498

 

Tangible assets as of:

($ in thousands)

 

March 31, 2022

 

December 31, 2021

 

March 31, 2021

 

 

 

 

 

 

 

Total assets (GAAP)

 

$

5,733,748

 

 

$

5,666,814

 

 

$

5,321,103

 

Less: Goodwill and other intangible assets

 

 

 

 

 

 

Goodwill

 

 

(33,050

)

 

 

(33,050

)

 

 

(33,050

)

Other intangible assets

 

 

(7,923

)

 

 

(8,250

)

 

 

(9,313

)

Total tangible assets (non-GAAP)

 

$

5,692,775

 

 

$

5,625,514

 

 

$

5,278,740

 

Tangible stockholders’ equity to tangible assets as of:

 

 

March 31, 2022

 

December 31, 2021

 

March 31, 2021

 

 

 

 

 

 

 

Stockholders' equity to total assets (GAAP)

 

8.99

%

 

9.25

%

 

9.36

%

Less: Impact of goodwill and other intangible assets

 

(0.65

) %

 

(0.67

) %

 

(0.73

) %

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

 

8.34

%

 

8.58

%

 

8.63

%

Tangible book value per common share as of:

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

 

March 31, 2022

 

December 31, 2021

 

March 31, 2021

 

 

 

 

 

 

 

Stockholders' equity (GAAP)

 

$

515,541

 

$

524,038

 

$

497,861

Tangible stockholders' equity (non-GAAP)

 

$

474,568

 

$

482,738

 

$

455,498

Total common shares outstanding

 

 

18,346,288

 

 

18,346,288

 

 

18,321,659

Book value per common share (GAAP)

 

$

28.10

 

$

28.56

 

$

27.17

Tangible book value per common share (non-GAAP)

 

$

25.87

 

$

26.31

 

$

24.86

Total loans excluding PPP loans and allowance for loan losses to total loans excluding PPP loans as of:

($ in thousands)

 

March 31, 2022

 

December 31, 2021

 

March 31, 2021

 

 

 

 

 

 

 

Total loans (GAAP)

 

$

4,315,031

 

 

$

4,037,123

 

 

$

3,676,756

 

Less: PPP loans

 

 

(37,985

)

 

 

(66,749

)

 

 

(251,916

)

Total loans excluding PPP loans (non-GAAP)

 

$

4,277,046

 

 

$

3,970,374

 

 

$

3,424,840

 

 

 

 

 

 

 

 

Allowance for loan losses to total loans (GAAP)

 

 

1.17

%

 

 

1.18

%

 

 

1.28

%

Allowance for loan losses to total loans, excluding PPP loans (non-GAAP)

 

 

1.18

%

 

 

1.20

%

 

 

1.38

%

Fully tax equivalent (FTE) net interest income and net interest margin on FTE basis:

 

 

As of and for the quarter ended

($ in thousands)

 

March 31, 2022

 

December 31, 2021

 

March 31, 2021

 

 

 

 

 

 

 

Net interest income (GAAP)

 

$

41,285

 

 

$

40,451

 

 

$

38,417

 

Gross income effect of tax exempt income

 

 

1,321

 

 

 

1,704

 

 

 

1,791

 

FTE net interest income (non-GAAP)

 

$

42,606

 

 

$

42,155

 

 

$

40,208

 

 

 

 

 

 

 

 

Average earning assets

 

$

5,359,626

 

 

$

5,414,566

 

 

$

4,795,207

 

Net interest margin

 

 

3.08

%

 

 

2.99

%

 

 

3.21

%

Net interest margin on FTE basis (non-GAAP)

 

 

3.17

%

 

 

3.09

%

 

 

3.33

%

 

Investor Relations:
Kelly C. Rackley
Corporate Secretary & Sr. Paralegal
303.962.0150 [email protected]

Media Relations:
Jeanne Lipson
Vice President, Marketing
915.881.6785

Source: FirstSun Capital Bancorp