On July 29, 2024, Firstsun Capital Bancorp (FSUN, Financial) released its 8-K filing detailing the financial results for the second quarter of 2024. Firstsun Capital Bancorp is the financial holding company for Sunflower Bank, National Association, providing a comprehensive range of deposit, lending, treasury management, wealth management, and online banking services. The company operates primarily in two segments: Banking operations and Mortgage operations, with the majority of revenue generated from the Banking operations segment.
Performance and Challenges
Firstsun Capital Bancorp reported a net income of $24.6 million for Q2 2024, down from $28.0 million in Q2 2023. Earnings per diluted share were $0.88, compared to $1.11 in the same quarter last year. The decline in net income was primarily due to $0.6 million in merger costs, net of tax, which negatively impacted earnings by $0.02 per diluted share.
Neal Arnold, FirstSun’s President and CEO, commented, “We are pleased to deliver strong earnings this quarter driven by our well-diversified business mix. Our net interest margin remains very strong at 4.02%, we grew our deposits and loans and we maintained our balanced mix of business with noninterest income to total revenue at 24.2%.”
Financial Achievements
Despite the challenges, Firstsun Capital Bancorp achieved several financial milestones:
- Net interest margin of 4.02%
- Return on average total assets of 1.26%
- Return on average stockholders’ equity of 10.03%
- Loan growth of 3.3% annualized
- Deposit growth of 10.8% annualized
These achievements are significant as they demonstrate the company's ability to maintain profitability and growth in a challenging economic environment.
Income Statement Highlights
Net interest income for Q2 2024 was $72.9 million, an increase of $2.1 million from the prior quarter. The net interest margin increased by three basis points to 4.02%. The provision for credit losses was $1.2 million, a significant decrease from $16.5 million in the previous quarter, primarily due to a $17.4 million charge-off on a specific customer in the C&I loan portfolio in Q1 2024.
Balance Sheet and Cash Flow Highlights
As of June 30, 2024, total assets were $7.999 billion, up from $7.782 billion at the end of the previous quarter. Loans held-for-investment increased to $6.337 billion, while deposits grew to $6.620 billion. The loan-to-deposit ratio stood at 95.7%, down from 97.5% in the prior quarter.
Key Metrics
| Metric | Q2 2024 | Q1 2024 | Q2 2023 |
|---|---|---|---|
| Net Interest Income | $72.9 million | $70.8 million | $73.8 million |
| Net Income | $24.6 million | $12.3 million | $28.0 million |
| Return on Average Total Assets | 1.26% | 0.64% | 1.49% |
| Return on Average Stockholders' Equity | 10.03% | 5.15% | 13.54% |
Analysis
Firstsun Capital Bancorp's performance in Q2 2024 reflects a resilient business model capable of navigating economic uncertainties. The increase in net interest income and net interest margin indicates effective asset-liability management. However, the decline in net income year-over-year highlights the impact of merger-related costs and previous loan charge-offs.
Overall, Firstsun Capital Bancorp's strategic initiatives, including the planned merger with HomeStreet, Inc., and the recent uplisting to Nasdaq, position the company for future growth and enhanced shareholder value.
Explore the complete 8-K earnings release (here) from Firstsun Capital Bancorp for further details.
