FSUN FirstSun Capital Bancorp

Second Quarter 2024 Highlights:

• Net income of $24.6 million, $0.88 per diluted share (excluding merger costs, $25.2 million, $0.90 per diluted share, see the “Non-GAAP Financial Measures and Reconciliations” below)
• Net interest margin of 4.02%
• Return on average total assets of 1.26% (excluding merger costs, 1.29%, see the “Non-GAAP Financial Measures and Reconciliations” below)
• Return on average stockholders’ equity of 10.03% (excluding merger costs, 10.28%, see the “Non-GAAP Financial Measures and Reconciliations” below)
• Loan growth of 3.3% annualized
• Deposit growth of 10.8% annualized
• 24.2% noninterest income to total revenue1

FirstSun Capital Bancorp (“FirstSun”) (NASDAQ: FSUN) reported net income of $24.6 million for the second quarter of 2024 compared to net income of $28.0 million for the second quarter of 2023. Earnings per diluted share were $0.88 for the second quarter of 2024 compared to $1.11 for the second quarter of 2023. Earnings for the second quarter of 2024 were negatively impacted by $0.6 million of merger costs, net of tax, or $0.02 per diluted share.

Neal Arnold, FirstSun’s President and Chief Executive Officer, 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%.”

Arnold continued, “We continue to work actively on all aspects of planning for the consummation of the previously announced strategic merger with HomeStreet, Inc. and we remain focused on continuing to deliver responsible growth amidst the challenging operating environment. We also remain focused on enhancing shareholder value and are very excited to announce a significant milestone in uplisting to Nasdaq on July 12, 2024 which we expect will provide us better access to the capital markets.”

Second Quarter 2024 Results

Net income totaled $24.6 million, or $0.88 per diluted share, for the second quarter of 2024, compared to $12.3 million, or $0.45 per diluted share, for the prior quarter. Net income in the second quarter of 2024 was negatively impacted by $0.6 million in merger costs, net of tax, or $0.02 per diluted share. Net income in the first quarter of 2024 was negatively impacted by a $13.1 million loan charge-off, net of tax, or $0.47 per diluted share, and $2.3 million in merger costs, net of tax, or $0.08 per diluted share. The return on average total assets was 1.26% for the second quarter of 2024, compared to 0.64% for the prior quarter, and the return on average stockholders’ equity was 10.03% for the second quarter of 2024, compared to 5.15% for the prior quarter. Second quarter of 2024 merger costs, net of tax negatively affected return on average total assets by 0.03% and return on average stockholders’ equity by 0.25%. First quarter of 2024 merger costs, net of tax negatively affected return on average total assets by 0.12% and return on average stockholders’ equity by 0.96%.

Net Interest Income and Net Interest Margin

Net interest income totaled $72.9 million for the second quarter of 2024, an increase of $2.1 million compared to the prior quarter. Our net interest margin increased three basis points to 4.02% compared to the prior quarter. Results for the second quarter of 2024, compared to the prior quarter, were primarily driven by an increase of 11 basis points in the yield on earning assets, partially offset by an increase of 12 basis points in the cost of interest-bearing liabilities.

Average loans, including loans held-for-sale, increased by $70.9 million in the second quarter of 2024, compared to the prior quarter. Loan yield increased by 11 basis points to 6.59% in the second quarter of 2024, 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 $101.7 million in the second quarter of 2024, compared to the prior quarter. Total cost of interest-bearing deposits increased by 11 basis points to 3.11% in the second quarter of 2024, compared to the prior quarter, primarily due to overall rising deposit costs as a result of the elevated interest rate environment. Average FHLB borrowings increased $20.1 million in the second quarter of 2024, compared to the prior quarter. The cost of FHLB borrowings increased by 11 basis points to 5.67% in the second quarter of 2024, compared to the prior quarter.

Asset Quality and Provision for Credit Losses

The provision for credit losses totaled $1.2 million for the second quarter of 2024, a decrease of $15.3 million from $16.5 million for the prior quarter, primarily due to a $17.4 million charge-off on a specific customer in our C&I loan portfolio for the prior quarter.

Net charge-offs for the second quarter of 2024 were $2.0 million resulting in an annualized ratio of net charge-offs to average loans of 0.13%, compared to net charge-offs of $17.4 million, or an annualized ratio of net-charge offs to average loans of 1.11% for the prior quarter. The allowance for credit losses as a percentage of total loans was 1.25% at June 30, 2024, a decrease of two basis points from the prior quarter.

The ratio of nonperforming assets to total assets was 0.84% at June 30, 2024, compared to 0.80% at March 31, 2024.

Noninterest Income

Noninterest income totaled $23.3 million for the second quarter of 2024, an increase of $0.5 million from the prior quarter. Mortgage banking income increased $1.5 million for the second quarter of 2024, primarily due to an increase in mortgage loan originations, including the corresponding impact to our capitalized MSR asset from the prior quarter.

Other noninterest income decreased $1.5 million for the second quarter of 2024, primarily due to a decrease in income from BOLI and a decrease in the fair value of investments related to our deferred compensation plan. Noninterest income as a percentage of total revenue2 was 24.2%, an increase of 0.2% from the prior quarter.

Noninterest Expense

Noninterest expense totaled $63.9 million for the second quarter of 2024, an increase of $2.0 million from the prior quarter, primarily due to an increase in salary and employee benefits of $2.5 million as a result of increased head count of C&I bankers and higher levels of variable compensation associated with an increase in mortgage loan originations. Noninterest expense for the second quarter of 2024 included $1.0 million in merger related expenses, a decrease of $1.4 million from the prior quarter.

The efficiency ratio for the second quarter of 2024 was 66.42% compared to 66.05% for the prior quarter. Merger costs negatively affected the efficiency ratio for the second quarter of 2024 by 1.09%, down from a negative impact of 2.66% for the prior quarter.

Tax Rate

The effective tax rate was 21.0% for the second quarter of 2024, compared to 19.6% for the prior quarter.

Loans

Loans were $6.3 billion at June 30, 2024 and March 31, 2024, increasing $52.3 million in the second quarter of 2024, or 3.3% on an annualized basis.

Deposits

Deposits were $6.6 billion at June 30, 2024 compared to $6.4 billion at March 31, 2024, an increase of $0.2 billion in the second quarter of 2024, or 10.8% on an annualized basis. Average deposits were $6.5 billion for the second quarter of 2024, compared to $6.4 billion for the prior quarter, an increase of $0.1 billion in the second quarter of 2024, or 7.3% on an annualized basis. Noninterest-bearing deposit accounts represented 23.6% of total deposits at June 30, 2024 and the loan-to-deposit ratio was 95.7% at June 30, 2024.

The ratio of total uninsured deposits to total deposits was estimated to be 32.1% at June 30, 2024, compared to 32.0% at March 31, 2024. The ratio of total uninsured and uncollateralized deposits to total deposits was estimated to be 25.5% at June 30, 2024, compared to 25.2% at March 31, 2024.3 

Capital

Capital ratios remain strong and above “well-capitalized” thresholds. As of June 30, 2024, our common equity tier 1 risk-based capital ratio was 12.80%, total risk-based capital ratio was 14.95% and tier 1 leverage ratio was 11.83%. Book value per share was $36.31 at June 30, 2024, an increase of $1.16 from March 31, 2024. Tangible book value per share, a non-GAAP financial measure, was $32.56 at June 30, 2024, an increase of $1.19 from March 31, 2024.

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:

• Tangible stockholders’ equity;
• Tangible assets;
• 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;
• Net income excluding merger costs;
• Return on average total assets excluding merger costs;
• Return on average stockholders’ equity excluding merger costs;
• Efficiency ratio excluding merger related expenses;
• Diluted earnings per share excluding merger related costs; and
• Fully tax equivalent (“FTE”) net interest income and net interest margin on FTE basis.

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. 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 $8.0 billion as of June 30, 2024.

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.

____________________

1 Total revenue is net interest income plus noninterest income.

2 Total revenue is net interest income plus noninterest income.

3 Uninsured deposits and uninsured and uncollateralized deposits are reported for our wholly-owned subsidiary Sunflower Bank, N.A.

Summary Data:

 

As of and for the quarter ended

($ in thousands, except per share amounts)

June 30, 2024

 

March 31, 2024

 

December 31, 2023

 

September 30, 2023

 

June 30, 2023

Net interest income

$

72,899

 

 

$

70,806

 

 

$

72,069

 

 

$

73,410

 

 

$

73,835

 

Provision for credit losses

 

1,200

 

 

 

16,500

 

 

 

6,575

 

 

 

3,890

 

 

 

4,422

 

Noninterest income

 

23,274

 

 

 

22,808

 

 

 

17,221

 

 

 

18,650

 

 

 

24,290

 

Noninterest expense

 

63,875

 

 

 

61,828

 

 

 

52,308

 

 

 

56,176

 

 

 

58,043

 

Income before income taxes

 

31,098

 

 

 

15,286

 

 

 

30,407

 

 

 

31,994

 

 

 

35,660

 

Provision for income taxes

 

6,538

 

 

 

2,990

 

 

 

6,393

 

 

 

6,762

 

 

 

7,654

 

Net income

 

24,560

 

 

 

12,296

 

 

 

24,014

 

 

 

25,232

 

 

 

28,006

 

Net income, excluding merger costs (1)

 

25,181

 

 

 

14,592

 

 

 

24,014

 

 

 

25,232

 

 

 

28,006

 

Weighted average common shares outstanding, basic

 

27,430,761

 

 

 

27,019,625

 

 

 

24,953,764

 

 

 

24,942,389

 

 

 

24,933,664

 

Weighted average common shares outstanding, diluted

 

28,031,956

 

 

 

27,628,941

 

 

 

25,472,017

 

 

 

25,357,807

 

 

 

25,206,359

 

Diluted earnings per share

$

0.88

 

 

$

0.45

 

 

$

0.94

 

 

$

1.00

 

 

$

1.11

 

Diluted earnings per share, excluding merger costs (1)

$

0.90

 

 

$

0.53

 

 

$

0.94

 

 

$

1.00

 

 

$

1.11

 

Return on average total assets

 

1.26

%

 

 

0.64

%

 

 

1.26

%

 

 

1.34

%

 

 

1.49

%

Return on average total assets, excluding merger costs (1)

 

1.29

%

 

 

0.76

%

 

 

1.26

%

 

 

1.34

%

 

 

1.49

%

Return on average stockholders' equity

 

10.03

%

 

 

5.15

%

 

 

11.19

%

 

 

12.03

%

 

 

13.54

%

Return on average stockholders’ equity, excluding merger costs (1)

 

10.28

%

 

 

6.11

%

 

 

11.19

%

 

 

12.03

%

 

 

13.54

%

Net interest margin

 

4.02

%

 

 

3.99

%

 

 

4.08

%

 

 

4.23

%

 

 

4.24

%

Net interest margin (FTE basis) (1)

 

4.08

%

 

 

4.06

%

 

 

4.15

%

 

 

4.30

%

 

 

4.32

%

Efficiency ratio

 

66.42

%

 

 

66.05

%

 

 

58.58

%

 

 

61.02

%

 

 

59.15

%

Efficiency ratio, excluding merger related expenses (1)

 

65.33

%

 

 

63.39

%

 

 

58.58

%

 

 

61.02

%

 

 

59.15

%

Noninterest income to total revenue (2)

 

24.2

%

 

 

24.4

%

 

 

19.3

%

 

 

20.3

%

 

 

24.8

%

Total assets

$

7,999,295

 

 

$

7,781,601

 

 

$

7,879,724

 

 

$

7,756,875

 

 

$

7,797,344

 

Total loans held-for-sale

 

66,571

 

 

 

56,813

 

 

 

54,212

 

 

 

51,465

 

 

 

56,350

 

Total loans held-for-investment

 

6,337,162

 

 

 

6,284,868

 

 

 

6,267,096

 

 

 

6,179,522

 

 

 

6,155,090

 

Total deposits

 

6,619,525

 

 

 

6,445,388

 

 

 

6,374,103

 

 

 

6,339,847

 

 

 

6,150,418

 

Total stockholders' equity

 

996,599

 

 

 

964,662

 

 

 

877,197

 

 

 

843,719

 

 

 

823,635

 

Loan to deposit ratio

 

95.7

%

 

 

97.5

%

 

 

98.3

%

 

 

97.5

%

 

 

100.1

%

Period end common shares outstanding

 

27,443,246

 

 

 

27,442,943

 

 

 

24,960,639

 

 

 

24,942,645

 

 

 

24,941,468

 

Book value per share

$

36.31

 

 

$

35.15

 

 

$

35.14

 

 

$

33.83

 

 

$

33.02

 

Tangible book value per share (1)

$

32.56

 

 

$

31.37

 

 

$

30.96

 

 

$

29.60

 

 

$

28.76

 

(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 six months ended

($ in thousands, except per share amounts)

June 30, 2024

 

June 30, 2023

Net interest income

$

143,705

 

 

$

147,952

 

Provision for credit losses

 

17,700

 

 

 

7,782

 

Noninterest income

 

46,082

 

 

 

43,221

 

Noninterest expense

 

125,703

 

 

 

114,309

 

Income before income taxes

 

46,384

 

 

 

69,082

 

Provision for income taxes

 

9,528

 

 

 

14,795

 

Net income

 

36,856

 

 

 

54,287

 

Net income, excluding merger costs (1)

 

39,773

 

 

 

54,287

 

Weighted average common shares outstanding, basic

 

27,224,968

 

 

 

24,928,485

 

Weighted average common shares outstanding, diluted

 

27,825,189

 

 

 

25,368,702

 

Diluted earnings per share

$

1.32

 

 

$

2.14

 

Diluted earnings per share, excluding merger costs (1)

$

1.43

 

 

$

2.14

 

Return on average total assets

 

0.95

%

 

 

1.46

%

Return on average total assets, excluding merger costs (1)

 

1.03

%

 

 

1.46

%

Return on average stockholders' equity

 

7.62

%

 

 

13.46

%

Return on average stockholders’ equity, excluding merger costs (1)

 

8.22

%

 

 

13.46

%

Net interest margin

 

4.00

%

 

 

4.31

%

Net interest margin (FTE basis) (1)

 

4.07

%

 

 

4.39

%

Efficiency ratio

 

66.23

%

 

 

59.79

%

Efficiency ratio, excluding merger related expenses (1)

 

64.37

%

 

 

59.79

%

Noninterest income to total revenue (2)

 

24.3

%

 

 

22.6

%

Total assets

$

7,999,295

 

 

$

7,797,344

 

Total loans held-for-sale

 

66,571

 

 

 

56,350

 

Total loans held-for-investment

 

6,337,162

 

 

 

6,155,090

 

Total deposits

 

6,619,525

 

 

 

6,150,418

 

Total stockholders' equity

 

996,599

 

 

 

823,635

 

Loan to deposit ratio

 

95.7

%

 

 

100.1

%

Period end common shares outstanding

 

27,443,246

 

 

 

24,941,468

 

Book value per share

$

36.31

 

 

$

33.02

 

Tangible book value per share (1)

$

32.56

 

 

$

28.76

 

(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 quarter ended

 

For the six months ended

($ in thousands, except per share amounts)

June 30, 2024

 

June 30, 2023

 

June 30, 2024

 

June 30, 2023

Total interest income

$

114,529

 

$

102,032

 

$

224,569

 

$

196,935

Total interest expense

 

41,630

 

 

28,197

 

 

80,864

 

 

48,983

Net interest income

 

72,899

 

 

73,835

 

 

143,705

 

 

147,952

Provision for credit losses

 

1,200

 

 

4,422

 

 

17,700

 

 

7,782

Net interest income after provision for credit losses

 

71,699

 

 

69,413

 

 

126,005

 

 

140,170

Noninterest income:

 

 

 

 

 

 

 

Service charges on deposits

 

5,946

 

 

5,358

 

 

11,714

 

 

10,373

Credit and debit card fees

 

3,007

 

 

3,057

 

 

5,810

 

 

6,038

Trust and investment advisory fees

 

1,493

 

 

1,478

 

 

2,956

 

 

2,939

Mortgage banking income, net

 

11,043

 

 

11,659

 

 

20,545

 

 

19,088

Other noninterest income

 

1,785

 

 

2,738

 

 

5,057

 

 

4,783

Total noninterest income

 

23,274

 

 

24,290

 

 

46,082

 

 

43,221

Noninterest expense:

 

 

 

 

 

 

 

Salaries and benefits

 

39,828

 

 

34,056

 

 

77,181

 

 

69,105

Occupancy and equipment

 

8,701

 

 

8,135

 

 

17,296

 

 

16,490

Amortization of intangible assets

 

652

 

 

2,050

 

 

1,467

 

 

3,094

Merger related expenses

 

1,046

 

 

—

 

 

3,535

 

 

—

Other noninterest expenses

 

13,648

 

 

13,802

 

 

26,224

 

 

25,620

Total noninterest expense

 

63,875

 

 

58,043

 

 

125,703

 

 

114,309

Income before income taxes

 

31,098

 

 

35,660

 

 

46,384

 

 

69,082

Provision for income taxes

 

6,538

 

 

7,654

 

 

9,528

 

 

14,795

Net income

$

24,560

 

$

28,006

 

$

36,856

 

$

54,287

Earnings per share - basic

$

0.90

 

$

1.12

 

$

1.35

 

$

2.18

Earnings per share - diluted

$

0.88

 

$

1.11

 

$

1.32

 

$

2.14

 

For the quarter ended

($ in thousands, except per share amounts)

June 30, 2024

 

March 31, 2024

 

December 31, 2023

 

September 30, 2023

 

June 30, 2023

Total interest income

$

114,529

 

$

110,040

 

$

109,974

 

$

106,775

 

$

102,032

Total interest expense

 

41,630

 

 

39,234

 

 

37,905

 

 

33,365

 

 

28,197

Net interest income

 

72,899

 

 

70,806

 

 

72,069

 

 

73,410

 

 

73,835

Provision for credit losses

 

1,200

 

 

16,500

 

 

6,575

 

 

3,890

 

 

4,422

Net interest income after provision for credit losses

 

71,699

 

 

54,306

 

 

65,494

 

 

69,520

 

 

69,413

Noninterest income:

 

 

 

 

 

 

 

 

 

Service charges on deposits

 

5,946

 

 

5,768

 

 

5,497

 

 

5,475

 

 

5,358

Credit and debit card fees

 

3,007

 

 

2,803

 

 

2,966

 

 

2,996

 

 

3,057

Trust and investment advisory fees

 

1,493

 

 

1,463

 

 

1,356

 

 

1,398

 

 

1,478

Mortgage banking income, net

 

11,043

 

 

9,502

 

 

4,883

 

 

7,413

 

 

11,659

Other noninterest income

 

1,785

 

 

3,272

 

 

2,519

 

 

1,368

 

 

2,738

Total noninterest income

 

23,274

 

 

22,808

 

 

17,221

 

 

18,650

 

 

24,290

Noninterest expense:

 

 

 

 

 

 

 

 

 

Salaries and benefits

 

39,828

 

 

37,353

 

 

30,158

 

 

33,968

 

 

34,056

Occupancy and equipment

 

8,701

 

 

8,595

 

 

8,449

 

 

8,487

 

 

8,135

Amortization of intangible assets

 

652

 

 

815

 

 

829

 

 

899

 

 

2,050

Merger related expenses

 

1,046

 

 

2,489

 

 

—

 

 

—

 

 

—

Other noninterest expenses

 

13,648

 

 

12,576

 

 

12,872

 

 

12,822

 

 

13,802

Total noninterest expense

 

63,875

 

 

61,828

 

 

52,308

 

 

56,176

 

 

58,043

Income before income taxes

 

31,098

 

 

15,286

 

 

30,407

 

 

31,994

 

 

35,660

Provision for income taxes

 

6,538

 

 

2,990

 

 

6,393

 

 

6,762

 

 

7,654

Net income

$

24,560

 

$

12,296

 

$

24,014

 

$

25,232

 

$

28,006

Earnings per share - basic

$

0.90

 

$

0.46

 

$

0.96

 

$

1.01

 

$

1.12

Earnings per share - diluted

$

0.88

 

$

0.45

 

$

0.94

 

$

1.00

 

$

1.11

Condensed Consolidated Balance Sheets as of (Unaudited):

($ in thousands)

June 30, 2024

 

March 31, 2024

 

December 31, 2023

 

September 30, 2023

 

June 30, 2023

Assets

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

$

535,766

 

 

$

383,605

 

 

$

479,362

 

 

$

443,887

 

 

$

492,735

 

Securities available-for-sale, at fair value

 

491,649

 

 

 

499,078

 

 

 

516,757

 

 

 

495,992

 

 

 

515,956

 

Securities held-to-maturity

 

36,310

 

 

 

36,640

 

 

 

36,983

 

 

 

37,410

 

 

 

37,883

 

Loans held-for-sale, at fair value

 

66,571

 

 

 

56,813

 

 

 

54,212

 

 

 

51,465

 

 

 

56,350

 

Loans

 

6,337,162

 

 

 

6,284,868

 

 

 

6,267,096

 

 

 

6,179,522

 

 

 

6,155,090

 

Allowance for credit losses

 

(78,960

)

 

 

(79,829

)

 

 

(80,398

)

 

 

(78,666

)

 

 

(77,362

)

Loans, net

 

6,258,202

 

 

 

6,205,039

 

 

 

6,186,698

 

 

 

6,100,856

 

 

 

6,077,728

 

Mortgage servicing rights, at fair value

 

80,744

 

 

 

78,416

 

 

 

76,701

 

 

 

81,036

 

 

 

78,390

 

Premises and equipment, net

 

83,320

 

 

 

84,063

 

 

 

84,842

 

 

 

83,733

 

 

 

84,483

 

Other real estate owned and foreclosed assets, net

 

4,497

 

 

 

4,414

 

 

 

4,100

 

 

 

8,395

 

 

 

10,139

 

Goodwill

 

93,483

 

 

 

93,483

 

 

 

93,483

 

 

 

93,483

 

 

 

93,483

 

Intangible assets, net

 

9,517

 

 

 

10,168

 

 

 

10,984

 

 

 

11,813

 

 

 

12,712

 

All other assets

 

339,236

 

 

 

329,882

 

 

 

335,602

 

 

 

348,805

 

 

 

337,485

 

Total assets

$

7,999,295

 

 

$

7,781,601

 

 

$

7,879,724

 

 

$

7,756,875

 

 

$

7,797,344

 

Liabilities and Stockholders' Equity

 

 

 

 

 

 

 

 

 

Liabilities:

 

 

 

 

 

 

 

 

 

Deposits:

 

 

 

 

 

 

 

 

 

Noninterest-bearing demand deposit accounts

$

1,562,308

 

 

$

1,517,315

 

 

$

1,530,506

 

 

$

1,610,650

 

 

$

1,667,247

 

Interest-bearing deposit accounts:

 

 

 

 

 

 

 

 

 

Interest-bearing demand accounts

 

538,232

 

 

 

542,184

 

 

 

534,540

 

 

 

440,845

 

 

 

379,779

 

Savings and money market accounts

 

2,505,439

 

 

 

2,473,255

 

 

 

2,446,632

 

 

 

2,476,097

 

 

 

2,441,349

 

NOW accounts

 

42,687

 

 

 

39,181

 

 

 

56,819

 

 

 

35,686

 

 

 

48,270

 

Certificate of deposit accounts

 

1,970,859

 

 

 

1,873,453

 

 

 

1,805,606

 

 

 

1,776,569

 

 

 

1,613,773

 

Total deposits

 

6,619,525

 

 

 

6,445,388

 

 

 

6,374,103

 

 

 

6,339,847

 

 

 

6,150,418

 

Securities sold under agreements to repurchase

 

20,408

 

 

 

20,423

 

 

 

24,693

 

 

 

25,868

 

 

 

32,861

 

Federal Home Loan Bank advances

 

145,000

 

 

 

144,810

 

 

 

389,468

 

 

 

330,000

 

 

 

570,585

 

Other borrowings

 

75,577

 

 

 

75,445

 

 

 

75,313

 

 

 

75,180

 

 

 

80,511

 

Other liabilities

 

142,186

 

 

 

130,873

 

 

 

138,950

 

 

 

142,261

 

 

 

139,334

 

Total liabilities

 

7,002,696

 

 

 

6,816,939

 

 

 

7,002,527

 

 

 

6,913,156

 

 

 

6,973,709

 

Stockholders' equity:

 

 

 

 

 

 

 

 

 

Preferred stock

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Common stock

 

3

 

 

 

3

 

 

 

2

 

 

 

2

 

 

 

2

 

Additional paid-in capital

 

543,339

 

 

 

542,582

 

 

 

462,680

 

 

 

462,507

 

 

 

461,856

 

Retained earnings

 

494,378

 

 

 

469,818

 

 

 

457,522

 

 

 

433,508

 

 

 

408,276

 

Accumulated other comprehensive loss, net

 

(41,121

)

 

 

(47,741

)

 

 

(43,007

)

 

 

(52,298

)

 

 

(46,499

)

Total stockholders' equity

 

996,599

 

 

 

964,662

 

 

 

877,197

 

 

 

843,719

 

 

 

823,635

 

Total liabilities and stockholders' equity

$

7,999,295

 

 

$

7,781,601

 

 

$

7,879,724

 

 

$

7,756,875

 

 

$

7,797,344

 

Consolidated Capital Ratios as of:

 

June 30, 2024

 

March 31, 2024

 

December 31, 2023

 

September 30, 2023

 

June 30, 2023

Stockholders' equity to total assets

12.46

%

 

12.40

%

 

11.13

%

 

10.88

%

 

10.56

%

Tangible stockholders' equity to tangible assets (1)

11.32

%

 

11.21

%

 

9.94

%

 

9.65

%

 

9.33

%

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

11.27

%

 

11.17

%

 

9.90

%

 

9.59

%

 

9.28

%

Tier 1 leverage ratio

11.83

%

 

11.73

%

 

10.52

%

 

10.37

%

 

10.00

%

Common equity tier 1 risk-based capital ratio

12.80

%

 

12.54

%

 

11.10

%

 

10.79

%

 

10.40

%

Tier 1 risk-based capital ratio

12.80

%

 

12.54

%

 

11.10

%

 

10.79

%

 

10.40

%

Total risk-based capital ratio

14.95

%

 

14.73

%

 

13.25

%

 

12.93

%

 

12.52

%

(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 quarter ended

 

For the six months ended

 

June 30, 2024

 

June 30, 2023

 

June 30, 2024

 

June 30, 2023

(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)

 

6,384,709

 

6.59

%

 

 

6,220,833

 

6.13

%

 

 

6,349,282

 

6.53

%

 

 

6,125,441

 

6.01

%

Investment securities

 

523,545

 

3.65

%

 

 

563,902

 

3.00

%

 

 

535,252

 

3.46

%

 

 

567,273

 

2.96

%

Interest-bearing cash and other assets

 

348,509

 

5.25

%

 

 

176,672

 

5.63

%

 

 

294,009

 

5.35

%

 

 

166,523

 

5.55

%

Total earning assets

 

7,256,763

 

6.31

%

 

 

6,961,407

 

5.86

%

 

 

7,178,543

 

6.26

%

 

 

6,859,237

 

5.74

%

Other assets

 

548,465

 

 

 

 

556,105

 

 

 

 

548,553

 

 

 

 

555,040

 

 

Total assets

$

7,805,228

 

 

 

$

7,517,512

 

 

 

$

7,727,096

 

 

 

$

7,414,277

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest-bearing liabilities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Demand and NOW deposits

$

621,343

 

3.80

%

 

$

332,695

 

2.55

%

 

$

585,417

 

3.67

%

 

$

280,224

 

2.40

%

Savings deposits

 

413,699

 

0.69

%

 

 

448,059

 

0.44

%

 

 

417,791

 

0.69

%

 

 

458,969

 

0.41

%

Money market deposits

 

2,092,449

 

2.01

%

 

 

2,107,379

 

1.11

%

 

 

2,077,885

 

1.97

%

 

 

2,201,401

 

0.99

%

Certificates of deposits

 

1,823,522

 

4.69

%

 

 

1,392,847

 

3.52

%

 

 

1,819,075

 

4.64

%

 

 

1,233,810

 

3.19

%

Total deposits

 

4,951,013

 

3.11

%

 

 

4,280,980

 

1.94

%

 

 

4,900,168

 

3.06

%

 

 

4,174,404

 

1.67

%

Repurchase agreements

 

16,553

 

1.15

%

 

 

33,673

 

0.80

%

 

 

18,904

 

1.10

%

 

 

31,683

 

0.62

%

Total deposits and repurchase agreements

 

4,967,566

 

3.10

%

 

 

4,314,653

 

1.93

%

 

 

4,919,072

 

3.05

%

 

 

4,206,087

 

1.66

%

FHLB borrowings

 

130,871

 

5.67

%

 

 

472,105

 

5.19

%

 

 

120,824

 

5.62

%

 

 

463,142

 

4.94

%

Other long-term borrowings

 

75,522

 

6.59

%

 

 

80,440

 

6.36

%

 

 

75,456

 

6.60

%

 

 

80,370

 

6.32

%

Total interest-bearing liabilities

 

5,173,959

 

3.22

%

 

 

4,867,198

 

2.32

%

 

 

5,115,352

 

3.16

%

 

 

4,749,599

 

2.06

%

Noninterest-bearing deposits

 

1,517,560

 

 

 

 

1,694,961

 

 

 

 

1,510,134

 

 

 

 

1,731,468

 

 

Other liabilities

 

133,845

 

 

 

 

128,118

 

 

 

 

134,106

 

 

 

 

126,343

 

 

Stockholders' equity

 

979,864

 

 

 

 

827,235

 

 

 

 

967,504

 

 

 

 

806,867

 

 

Total liabilities and stockholders' equity

$

7,805,228

 

 

 

$

7,517,512

 

 

 

$

7,727,096

 

 

 

$

7,414,277

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net interest spread

 

 

3.09

%

 

 

 

3.54

%

 

 

 

3.10

%

 

 

 

3.68

%

Net interest margin

 

 

4.02

%

 

 

 

4.24

%

 

 

 

4.00

%

 

 

 

4.31

%

Net interest margin (on FTE basis) (2)

 

 

4.08

%

 

 

 

4.32

%

 

 

 

4.07

%

 

 

 

4.39

%

(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 quarter ended

 

June 30, 2024

 

March 31, 2024

 

December 31, 2023

 

September 30, 2023

 

June 30, 2023

(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)

 

6,384,709

 

6.59

%

 

 

6,313,855

 

6.48

%

 

 

6,280,362

 

6.51

%

 

 

6,180,684

 

6.44

%

 

 

6,220,833

 

6.13

%

Investment securities

 

523,545

 

3.65

%

 

 

546,960

 

3.28

%

 

 

538,348

 

3.28

%

 

 

545,257

 

3.10

%

 

 

563,902

 

3.00

%

Interest-bearing cash and other assets

 

348,509

 

5.25

%

 

 

239,508

 

5.49

%

 

 

247,978

 

5.50

%

 

 

221,559

 

5.39

%

 

 

176,672

 

5.63

%

Total earning assets

 

7,256,763

 

6.31

%

 

 

7,100,323

 

6.20

%

 

 

7,066,688

 

6.22

%

 

 

6,947,500

 

6.15

%

 

 

6,961,407

 

5.86

%

Other assets

 

548,465

 

 

 

 

548,642

 

 

 

 

563,368

 

 

 

 

557,988

 

 

 

 

556,105

 

 

Total assets

$

7,805,228

 

 

 

$

7,648,965

 

 

 

$

7,630,056

 

 

 

$

7,505,488

 

 

 

$

7,517,512

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest-bearing liabilities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Demand and NOW deposits

$

621,343

 

3.80

%

 

$

549,491

 

3.54

%

 

$

510,982

 

3.45

%

 

$

466,837

 

3.27

%

 

$

332,695

 

2.55

%

Savings deposits

 

413,699

 

0.69

%

 

 

421,882

 

0.69

%

 

 

457,679

 

0.93

%

 

 

439,172

 

0.62

%

 

 

448,059

 

0.44

%

Money market deposits

 

2,092,449

 

2.01

%

 

 

2,063,321

 

1.93

%

 

 

2,063,383

 

1.82

%

 

 

2,026,028

 

1.58

%

 

 

2,107,379

 

1.11

%

Certificates of deposits

 

1,823,522

 

4.69

%

 

 

1,814,629

 

4.60

%

 

 

1,825,325

 

4.54

%

 

 

1,748,515

 

4.21

%

 

 

1,392,847

 

3.52

%

Total deposits

 

4,951,013

 

3.11

%

 

 

4,849,323

 

3.00

%

 

 

4,857,369

 

2.93

%

 

 

4,680,552

 

2.64

%

 

 

4,280,980

 

1.94

%

Repurchase agreements

 

16,553

 

1.15

%

 

 

21,254

 

1.06

%

 

 

23,457

 

1.06

%

 

 

26,549

 

0.98

%

 

 

33,673

 

0.80

%

Total deposits and repurchase agreements

 

4,967,566

 

3.10

%

 

 

4,870,577

 

2.99

%

 

 

4,880,826

 

2.92

%

 

 

4,707,101

 

2.63

%

 

 

4,314,653

 

1.93

%

FHLB borrowings

 

130,871

 

5.67

%

 

 

110,777

 

5.56

%

 

 

74,146

 

5.64

%

 

 

84,332

 

5.40

%

 

 

472,105

 

5.19

%

Other long-term borrowings

 

75,522

 

6.59

%

 

 

75,389

 

6.62

%

 

 

75,249

 

6.62

%

 

 

78,680

 

6.44

%

 

 

80,440

 

6.36

%

Total interest-bearing liabilities

 

5,173,959

 

3.22

%

 

 

5,056,743

 

3.10

%

 

 

5,030,221

 

3.01

%

 

 

4,870,113

 

2.74

%

 

 

4,867,198

 

2.32

%

Noninterest-bearing deposits

 

1,517,560

 

 

 

 

1,502,707

 

 

 

 

1,597,672

 

 

 

 

1,654,090

 

 

 

 

1,694,961

 

 

Other liabilities

 

133,845

 

 

 

 

134,370

 

 

 

 

143,416

 

 

 

 

142,027

 

 

 

 

128,118

 

 

Stockholders' equity

 

979,864

 

 

 

 

955,145

 

 

 

 

858,747

 

 

 

 

839,258

 

 

 

 

827,235

 

 

Total liabilities and stockholders' equity

$

7,805,228

 

 

 

$

7,648,965

 

 

 

$

7,630,056

 

 

 

$

7,505,488

 

 

 

$

7,517,512

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net interest spread

 

 

3.09

%

 

 

 

3.10

%

 

 

 

3.21

%

 

 

 

3.41

%

 

 

 

3.54

%

Net interest margin

 

 

4.02

%

 

 

 

3.99

%

 

 

 

4.08

%

 

 

 

4.23

%

 

 

 

4.24

%

Net interest margin (on FTE basis) (2)

 

 

4.08

%

 

 

 

4.06

%

 

 

 

4.15

%

 

 

 

4.30

%

 

 

 

4.32

%

(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)

June 30, 2024

 

March 31, 2024

 

December 31, 2023

 

September 30, 2023

 

June 30, 2023

Consumer

 

 

 

 

 

 

 

 

 

Noninterest bearing deposit accounts

$

414,795

 

$

356,732

 

$

360,168

 

$

366,366

 

$

375,583

Interest-bearing deposit accounts:

 

 

 

 

 

 

 

 

 

Demand and NOW deposits

 

42,903

 

 

38,625

 

 

36,162

 

 

33,340

 

 

34,731

Savings deposits

 

334,741

 

 

340,086

 

 

343,291

 

 

356,890

 

 

378,193

Money market deposits

 

1,243,355

 

 

1,229,239

 

 

1,196,645

 

 

1,149,365

 

 

1,174,883

Certificates of deposits

 

1,438,792

 

 

1,437,590

 

 

1,437,537

 

 

1,366,255

 

 

1,095,754

Total interest-bearing deposit accounts

 

3,059,791

 

 

3,045,540

 

 

3,013,635

 

 

2,905,850

 

 

2,683,561

Total consumer deposits

$

3,474,586

 

$

3,402,272

 

$

3,373,803

 

$

3,272,216

 

$

3,059,144

Business

 

 

 

 

 

 

 

 

 

Noninterest bearing deposit accounts

$

1,147,513

 

$

1,160,583

 

$

1,170,338

 

$

1,244,284

 

$

1,291,664

Interest-bearing deposit accounts:

 

 

 

 

 

 

 

 

 

Demand and NOW deposits

 

538,016

 

 

502,726

 

 

555,197

 

 

443,191

 

 

393,318

Savings deposits

 

77,931

 

 

80,226

 

 

80,802

 

 

85,234

 

 

30,904

Money market deposits

 

849,412

 

 

823,704

 

 

825,811

 

 

859,516

 

 

832,279

Certificates of deposits

 

90,189

 

 

97,854

 

 

87,407

 

 

77,228

 

 

77,604

Total interest-bearing deposit accounts

 

1,555,548

 

 

1,504,510

 

 

1,549,217

 

 

1,465,169

 

 

1,334,105

Total business deposits

$

2,703,061

 

$

2,665,093

 

$

2,719,555

 

$

2,709,453

 

$

2,625,769

Wholesale deposits (1)

$

441,878

 

$

378,023

 

$

280,745

 

$

358,178

 

$

465,505

Total deposits

$

6,619,525

 

$

6,445,388

 

$

6,374,103

 

$

6,339,847

 

$

6,150,418

(1)

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

Balance Sheet Ratios as of:

 

June 30,  2024

 

March 31, 2024

 

December 31, 2023

 

September 30, 2023

 

June 30,   2023

Cash to total assets (1)

6.60

%

 

4.80

%

 

6.00

%

 

5.60

%

 

6.20

%

Loan to deposit ratio

95.7

%

 

97.5

%

 

98.3

%

 

97.5

%

 

100.1

%

Uninsured deposits to total deposits (2)

32.1

%

 

32.0

%

 

31.2

%

 

32.0

%

 

32.5

%

Uninsured and uncollateralized deposits to total deposits (2)

25.5

%

 

25.2

%

 

25.1

%

 

25.4

%

 

24.1

%

Wholesale deposits and borrowings to total liabilities (3)

8.4

%

 

7.7

%

 

9.6

%

 

10.0

%

 

14.9

%

(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)

June 30, 2024

 

March 31, 2024

 

December 31, 2023

 

September 30, 2023

 

June 30, 2023

Commercial and industrial

$

2,431,110

 

$

2,480,078

 

$

2,467,688

 

$

2,459,358

 

$

2,474,531

Commercial real estate:

 

 

 

 

 

 

 

 

 

Non-owner occupied

 

866,999

 

 

836,515

 

 

812,235

 

 

767,135

 

 

723,365

Owner occupied

 

660,511

 

 

642,930

 

 

635,365

 

 

631,352

 

 

643,191

Construction and land

 

350,878

 

 

326,447

 

 

345,430

 

 

329,433

 

 

316,399

Multifamily

 

94,220

 

 

94,898

 

 

103,066

 

 

114,535

 

 

100,464

Total commercial real estate

 

1,972,608

 

 

1,900,790

 

 

1,896,096

 

 

1,842,455

 

 

1,783,419

Residential real estate

 

1,146,989

 

 

1,109,676

 

 

1,110,610

 

 

1,059,074

 

 

1,082,991

Public Finance

 

537,872

 

 

579,991

 

 

602,913

 

 

602,844

 

 

611,748

Consumer

 

42,129

 

 

40,317

 

 

36,371

 

 

37,681

 

 

39,909

Other

 

206,454

 

 

174,016

 

 

153,418

 

 

178,110

 

 

162,492

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

$

6,337,162

 

$

6,284,868

 

$

6,267,096

 

$

6,179,522

 

$

6,155,090

Asset Quality:

 

As of and for the quarter ended

($ in thousands)

June 30, 2024

 

March 31, 2024

 

December 31, 2023

 

September 30, 2023

 

June 30, 2023

Net charge-offs

$

2,009

 

 

$

17,429

 

 

$

4,743

 

 

$

2,296

 

 

$

717

 

Allowance for credit losses

$

78,960

 

 

$

79,829

 

 

$

80,398

 

 

$

78,666

 

 

$

77,362

 

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

$

62,558

 

 

$

57,599

 

 

$

63,143

 

 

$

40,743

 

 

$

67,840

 

Nonperforming assets

$

67,055

 

 

$

62,013

 

 

$

67,243

 

 

$

49,138

 

 

$

77,979

 

Ratio of net charge-offs to average loans outstanding

 

0.13

%

 

 

1.11

%

 

 

0.30

%

 

 

0.15

%

 

 

0.05

%

Allowance for credit losses to total loans outstanding

 

1.25

%

 

 

1.27

%

 

 

1.28

%

 

 

1.27

%

 

 

1.26

%

Allowance for credit losses to total nonperforming loans

 

126.22

%

 

 

138.59

%

 

 

127.33

%

 

 

193.08

%

 

 

114.04

%

Nonperforming loans to total loans

 

0.99

%

 

 

0.92

%

 

 

1.01

%

 

 

0.66

%

 

 

1.10

%

Nonperforming assets to total assets

 

0.84

%

 

 

0.80

%

 

 

0.85

%

 

 

0.63

%

 

 

1.00

%

Non-GAAP Financial Measures and Reconciliations:

 

As of and for the quarter ended

 

As of and for the six months ended

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

June 30, 2024

 

March 31, 2024

 

December 31, 2023

 

September 30, 2023

 

June 30, 2023

 

June 30, 2024

 

June 30, 2023

Tangible stockholders’ equity:

Total stockholders' equity (GAAP)

$

996,599

 

 

$

964,662

 

 

$

877,197

 

 

$

843,719

 

 

$

823,635

 

 

$

996,599

 

 

$

823,635

 

Less: Goodwill and other intangible assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

Goodwill

 

(93,483

)

 

 

(93,483

)

 

 

(93,483

)

 

 

(93,483

)

 

 

(93,483

)

 

 

(93,483

)

 

 

(93,483

)

Other intangible assets

 

(9,517

)

 

 

(10,168

)

 

 

(10,984

)

 

 

(11,813

)

 

 

(12,712

)

 

 

(9,517

)

 

 

(12,712

)

Tangible stockholders' equity (non-GAAP)

$

893,599

 

 

$

861,011

 

 

$

772,730

 

 

$

738,423

 

 

$

717,440

 

 

$

893,599

 

 

$

717,440

 

Tangible assets:

Total assets (GAAP)

$

7,999,295

 

 

$

7,781,601

 

 

$

7,879,724

 

 

$

7,756,875

 

 

$

7,797,344

 

 

$

7,999,295

 

 

$

7,797,344

 

Less: Goodwill and other intangible assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

Goodwill

 

(93,483

)

 

 

(93,483

)

 

 

(93,483

)

 

 

(93,483

)

 

 

(93,483

)

 

 

(93,483

)

 

 

(93,483

)

Other intangible assets

 

(9,517

)

 

 

(10,168

)

 

 

(10,984

)

 

 

(11,813

)

 

 

(12,712

)

 

 

(9,517

)

 

 

(12,712

)

Tangible assets (non-GAAP)

$

7,896,295

 

 

$

7,677,950

 

 

$

7,775,257

 

 

$

7,651,579

 

 

$

7,691,149

 

 

$

7,896,295

 

 

$

7,691,149

 

Tangible stockholders’ equity to tangible assets:

Total stockholders' equity to total assets (GAAP)

 

12.46

%

 

 

12.40

%

 

 

11.13

%

 

 

10.88

%

 

 

10.56

%

 

 

12.46

%

 

 

10.56

%

Less: Impact of goodwill and other intangible assets

 

(1.14

)%

 

 

(1.19

)%

 

 

(1.19

)%

 

 

(1.23

)%

 

 

(1.23

)%

 

 

(1.14

)%

 

 

(1.23

)%

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

 

11.32

%

 

 

11.21

%

 

 

9.94

%

 

 

9.65

%

 

 

9.33

%

 

 

11.32

%

 

 

9.33

%

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

Tangible stockholders' equity (non-GAAP)

$

893,599

 

 

$

861,011

 

 

$

772,730

 

 

$

738,423

 

 

$

717,440

 

 

$

893,599

 

 

$

717,440

 

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

 

(3,949

)

 

 

(4,236

)

 

 

(3,629

)

 

 

(5,001

)

 

 

(3,821

)

 

 

(3,949

)

 

 

(3,821

)

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

$

889,650

 

 

$

856,775

 

 

$

769,101

 

 

$

733,422

 

 

$

713,619

 

 

$

889,650

 

 

$

713,619

 

Tangible assets (non-GAAP)

$

7,896,295

 

 

$

7,677,950

 

 

$

7,775,257

 

 

$

7,651,579

 

 

$

7,691,149

 

 

$

7,896,295

 

 

$

7,691,149

 

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

 

(3,949

)

 

 

(4,236

)

 

 

(3,629

)

 

 

(5,001

)

 

 

(3,821

)

 

 

(3,949

)

 

 

(3,821

)

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

$

7,892,346

 

 

$

7,673,714

 

 

$

7,771,628

 

 

$

7,646,578

 

 

$

7,687,328

 

 

$

7,892,346

 

 

$

7,687,328

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

11.32

%

 

 

11.21

%

 

 

9.94

%

 

 

9.65

%

 

 

9.33

%

 

 

11.32

%

 

 

9.33

%

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

 

(0.05

)%

 

 

(0.04

)%

 

 

(0.04

)%

 

 

(0.06

)%

 

 

(0.05

)%

 

 

(0.05

)%

 

 

(0.05

)%

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

 

11.27

%

 

 

11.17

%

 

 

9.90

%

 

 

9.59

%

 

 

9.28

%

 

 

11.27

%

 

 

9.28

%

Tangible book value per share:

Total stockholders' equity (GAAP)

$

996,599

 

 

$

964,662

 

 

$

877,197

 

 

$

843,719

 

 

$

823,635

 

 

$

996,599

 

 

$

823,635

 

Tangible stockholders' equity (non-GAAP)

$

893,599

 

 

$

861,011

 

 

$

772,730

 

 

$

738,423

 

 

$

717,440

 

 

$

893,599

 

 

$

717,440

 

Total shares outstanding

 

27,443,246

 

 

 

27,442,943

 

 

 

24,960,639

 

 

 

24,942,645

 

 

 

24,941,468

 

 

 

27,443,246

 

 

 

24,941,468

 

Book value per share (GAAP)

$

36.31

 

 

$

35.15

 

 

$

35.14

 

 

$

33.83

 

 

$

33.02

 

 

$

36.31

 

 

$

33.02

 

Tangible book value per share (non-GAAP)

$

32.56

 

 

$

31.37

 

 

$

30.96

 

 

$

29.60

 

 

$

28.76

 

 

$

32.56

 

 

$

28.76

 

Net income excluding merger costs:

Net income (GAAP)

$

24,560

 

 

$

12,296

 

 

$

24,014

 

 

$

25,232

 

 

$

28,006

 

 

$

36,856

 

 

$

54,287

 

Add: Merger costs

 

 

 

 

 

 

 

 

 

 

 

 

 

Merger related expenses

 

1,046

 

 

 

2,489

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

3,535

 

 

 

—

 

Income tax effect on merger related expenses

 

(425

)

 

 

(193

)

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(618

)

 

 

—

 

Total merger costs, net of tax

 

621

 

 

 

2,296

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

2,917

 

 

 

—

 

Net income excluding merger costs (non-GAAP)

$

25,181

 

 

$

14,592

 

 

$

24,014

 

 

$

25,232

 

 

$

28,006

 

 

$

39,773

 

 

$

54,287

 

Return on average total assets excluding merger costs:

Return on average total assets (ROAA) (GAAP)

 

1.26

%

 

 

0.64

%

 

 

1.26

%

 

 

1.34

%

 

 

1.49

%

 

 

0.95

%

 

 

1.46

%

Add: Impact of merger costs, net of tax

 

0.03

%

 

 

0.12

%

 

 

—

%

 

 

—

%

 

 

—

%

 

 

0.08

%

 

 

—

%

ROAA excluding merger costs (non-GAAP)

 

1.29

%

 

 

0.76

%

 

 

1.26

%

 

 

1.34

%

 

 

1.49

%

 

 

1.03

%

 

 

1.46

%

Return on average stockholders’ equity excluding merger costs:

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

 

10.03

%

 

 

5.15

%

 

 

11.19

%

 

 

12.03

%

 

 

13.54

%

 

 

7.62

%

 

 

13.46

%

Add: Impact of merger costs, net of tax

 

0.25

%

 

 

0.96

%

 

 

—

%

 

 

—

%

 

 

—

%

 

 

0.60

%

 

 

—

%

ROAE excluding merger costs (non-GAAP)

 

10.28

%

 

 

6.11

%

 

 

11.19

%

 

 

12.03

%

 

 

13.54

%

 

 

8.22

%

 

 

13.46

%

Efficiency ratio excluding merger related expenses:

Efficiency ratio (GAAP)

 

66.42

%

 

 

66.05

%

 

 

58.58

%

 

 

61.02

%

 

 

59.15

%

 

 

66.23

%

 

 

59.79

%

Less: Impact of merger related expenses

 

(1.09

)%

 

 

(2.66

)%

 

 

—

%

 

 

—

%

 

 

—

%

 

 

(1.86

)%

 

 

—

%

Efficiency ratio excluding merger related expenses (non-GAAP)

 

65.33

%

 

 

63.39

%

 

 

58.58

%

 

 

61.02

%

 

 

59.15

%

 

 

64.37

%

 

 

59.79

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Diluted earnings per share excluding merger costs:

Diluted earnings per share (GAAP)

$

0.88

 

 

$

0.45

 

 

$

0.94

 

 

$

1.00

 

 

$

1.11

 

 

$

1.32

 

 

$

2.14

 

Add: Impact of merger costs, net of tax

 

0.02

 

 

 

0.08

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

0.11

 

 

 

—

 

Diluted earnings per share excluding merger costs (non-GAAP)

$

0.90

 

 

$

0.53

 

 

$

0.94

 

 

$

1.00

 

 

$

1.11

 

 

$

1.43

 

 

$

2.14

 

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

Net interest income (GAAP)

$

72,899

 

 

$

70,806

 

 

$

72,069

 

 

$

73,410

 

 

$

73,835

 

 

$

143,705

 

 

$

147,952

 

Gross income effect of tax exempt income

 

1,156

 

 

 

1,318

 

 

 

1,270

 

 

 

1,286

 

 

 

1,288

 

 

 

2,475

 

 

 

2,530

 

FTE net interest income (non-GAAP)

$

74,055

 

 

$

72,124

 

 

$

73,339

 

 

$

74,696

 

 

$

75,123

 

 

$

146,180

 

 

$

150,482

 

Average earning assets

$

7,256,763

 

 

$

7,100,323

 

 

$

7,066,688

 

 

$

6,947,500

 

 

$

6,961,407

 

 

$

7,178,543

 

 

$

6,859,237

 

Net interest margin

 

4.02

%

 

 

3.99

%

 

 

4.08

%

 

 

4.23

%

 

 

4.24

%

 

 

4.00

%

 

 

4.31

%

Net interest margin on FTE basis (non-GAAP)

 

4.08

%

 

 

4.06

%

 

 

4.15

%

 

 

4.30

%

 

 

4.32

%

 

 

4.07

%

 

 

4.39

%

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20240727631798/en/

Investor Contact: Kelly C. Rackley VP, Corporate Secretary & Investor Relations Manager, FirstSun 303.962.0150 | Investor.Relations@firstsuncb.com

Media Contact: Jeanne Lipson Vice President of Marketing, Sunflower Bank 915.881.6785 | Jeanne.Lipson@SunflowerBank.com