FSUN FirstSun Capital Bancorp

Third Quarter 2024 Highlights:

• Net income of $22.4 million, $0.79 per diluted share (excluding merger costs, $23.7 million, $0.84 per diluted share, see the “Non-GAAP Financial Measures and Reconciliations” below)
• Net interest margin of 4.10%
• Return on average total assets of 1.13% (excluding merger costs, 1.19%, see the “Non-GAAP Financial Measures and Reconciliations” below)
• Return on average stockholders’ equity of 8.79% (excluding merger costs, 9.27%, see the “Non-GAAP Financial Measures and Reconciliations” below)
• Loan growth of 6.7% annualized
• Deposit growth of 1.8% annualized
• 22.5% noninterest income to total revenue1

FirstSun Capital Bancorp (“FirstSun”) (NASDAQ: FSUN) reported net income of $22.4 million for the third quarter of 2024 compared to net income of $25.2 million for the third quarter of 2023. Earnings per diluted share were $0.79 for the third quarter of 2024 compared to $1.00 for the third quarter of 2023. Earnings for the third quarter of 2024 were negatively impacted by $1.2 million of merger costs, net of tax, or $0.05 per diluted share.

Neal Arnold, FirstSun’s Chief Executive Officer and President, commented, “Our results this quarter continue to demonstrate the underlying strength of our core franchise. Our revenue growth was rooted in a very strong net interest margin of 4.10% and we realized growth in both loans and deposits. We remain focused on continuing to responsibly grow the business and expand our client relationships across all of the markets we serve through our expansive suite of banking services. We appreciate all the hard work of our teams across the organization this year.”

Third Quarter 2024 Results

Net income totaled $22.4 million, or $0.79 per diluted share, for the third quarter of 2024, compared to $24.6 million, or $0.88 per diluted share, for the prior quarter. Net income was negatively impacted by $1.2 million in merger costs, net of tax, or $0.05 per diluted share, compared to $0.6 million in merger costs, net of tax, or $0.02 per diluted share, for the prior quarter. The return on average total assets was 1.13% for the third quarter of 2024, compared to 1.26% for the prior quarter, and the return on average stockholders’ equity was 8.79% for the third quarter of 2024, compared to 10.03% for the prior quarter. Third quarter of 2024 merger costs, net of tax, negatively impacted return on average total assets by 0.06% and return on average stockholders’ equity by 0.48%. Second quarter of 2024 merger costs, net of tax, negatively impacted return on average total assets by 0.03% and return on average stockholders’ equity by 0.25%.

Net Interest Income and Net Interest Margin

Net interest income totaled $76.2 million for the third quarter of 2024, an increase of $3.3 million compared to the prior quarter. Our net interest margin increased eight basis points to 4.10% compared to the prior quarter. Results for the third quarter of 2024, compared to the prior quarter, were primarily driven by an increase of nine basis points in the yield on earning assets, partially offset by an increase of five basis points in the cost of interest-bearing liabilities.

Average loans, including loans held-for-sale, increased by $75.8 million in the third quarter of 2024, compared to the prior quarter. Loan yield increased by 12 basis points to 6.71% in the third 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 $59.1 million in the third quarter of 2024, compared to the prior quarter. Total cost of interest-bearing deposits increased by five basis points to 3.16% in the third quarter of 2024, compared to the prior quarter, primarily due to continued intense competition for deposits amidst the elevated interest rate environment. Average FHLB borrowings increased $4.8 million in the third quarter of 2024, compared to the prior quarter. The cost of FHLB borrowings decreased by six basis points to 5.61% in the third quarter of 2024, compared to the prior quarter.

Asset Quality and Provision for Credit Losses

The provision for credit losses totaled $5.0 million for the third quarter of 2024, an increase of $3.8 million from $1.2 million for the prior quarter, primarily due to loan growth and deterioration on a specific customer relationship in our loan portfolio.

Net charge-offs for the third quarter of 2024 were $1.4 million resulting in an annualized ratio of net charge-offs to average loans of 0.09%, compared to net charge-offs of $2.0 million, or an annualized ratio of net-charge offs to average loans of 0.13% for the prior quarter. The allowance for credit losses as a percentage of total loans was 1.29% at September 30, 2024, an increase of four basis points from the prior quarter.

The ratio of nonperforming assets to total assets was 0.86% at September 30, 2024, compared to 0.84% at June 30, 2024.

Noninterest Income

Noninterest income totaled $22.1 million for the third quarter of 2024, a decrease of $1.2 million from the prior quarter. Mortgage banking income decreased $2.2 million for the third quarter of 2024, primarily due to a decrease in revenue related to net sale gains and fees from mortgage loan originations, including fair value changes in the held-for-sale portfolio and hedging and a decrease in the change in fair value of our MSR asset, net of hedging activity.

Other noninterest income increased $1.0 million for the third quarter of 2024, primarily due to an increase in income from loan syndication fees and an increase in the fair value of investments related to our deferred compensation plan. Noninterest income as a percentage of total revenue1 was 22.5%, a decrease of 1.7% from the prior quarter.

Noninterest Expense

Noninterest expense totaled $64.7 million for the third quarter of 2024, an increase of $0.8 million from the prior quarter, primarily due to an increase in merger related expenses of $0.6 million from the prior quarter.

The efficiency ratio for the third quarter of 2024 was 65.83% compared to 66.42% for the prior quarter. Merger costs negatively affected the efficiency ratio for the third quarter of 2024 by 1.67%, up from a negative impact of 1.09% for the prior quarter.

Tax Rate

The effective tax rate was 21.5% for the third quarter of 2024, compared to 21.0% for the prior quarter.

Loans

Loans were $6.4 billion at September 30, 2024 compared to $6.3 billion at June 30, 2024, an increase of $0.1 billion in the third quarter of 2024, or 6.7% on an annualized basis. Growth in the third quarter in commercial and industrial (C&I), owner occupied commercial real estate and residential real estate loans were partially offset by a decline in non-owner occupied commercial real estate and construction and land loans.

Deposits

Deposits were $6.6 billion at September 30, 2024 and June 30, 2024, increasing by $30.4 million in the third quarter of 2024, or 1.8% on an annualized basis. Deposit growth of $107.4 million in interest-bearing demand accounts and $103.4 million in savings accounts and money market accounts in the third quarter were partially offset by a decline of $171.4 million in certificate of deposit accounts. Average deposits were $6.6 billion for the third quarter of 2024, compared to $6.5 billion for the prior quarter, an increase of $0.1 billion in the third quarter of 2024, or 6.8% on an annualized basis. Noninterest-bearing deposit accounts represented 23.4% of total deposits at September 30, 2024 and the loan-to-deposit ratio was 96.9% at September 30, 2024.

The ratio of total uninsured deposits to total deposits was estimated to be 32.7% at September 30, 2024, compared to 32.1% at June 30, 2024. The ratio of total uninsured and uncollateralized deposits to total deposits was estimated to be 26.8% at September 30, 2024, compared to 25.5% at June 30, 2024.2

Capital

Capital ratios remain strong and above “well-capitalized” thresholds. As of September 30, 2024, our common equity tier 1 risk-based capital ratio was 13.06%, total risk-based capital ratio was 15.25% and tier 1 leverage ratio was 11.96%. Book value per share was $37.38 at September 30, 2024, an increase of $1.07 from June 30, 2024. Tangible book value per share, a non-GAAP financial measure, was $33.68 at September 30, 2024, an increase of $1.12 from June 30, 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 $8.1 billion as of September 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 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)

September 30, 2024

 

June 30, 2024

 

March 31, 2024

 

December 31, 2023

 

September 30, 2023

Net interest income

$

76,158

 

 

$

72,899

 

 

$

70,806

 

 

$

72,069

 

 

$

73,410

 

Provision for credit losses

 

5,000

 

 

 

1,200

 

 

 

16,500

 

 

 

6,575

 

 

 

3,890

 

Noninterest income

 

22,075

 

 

 

23,274

 

 

 

22,808

 

 

 

17,221

 

 

 

18,650

 

Noninterest expense

 

64,664

 

 

 

63,875

 

 

 

61,828

 

 

 

52,308

 

 

 

56,176

 

Income before income taxes

 

28,569

 

 

 

31,098

 

 

 

15,286

 

 

 

30,407

 

 

 

31,994

 

Provision for income taxes

 

6,147

 

 

 

6,538

 

 

 

2,990

 

 

 

6,393

 

 

 

6,762

 

Net income

 

22,422

 

 

 

24,560

 

 

 

12,296

 

 

 

24,014

 

 

 

25,232

 

Net income, excluding merger costs (1)

 

23,655

 

 

 

25,181

 

 

 

14,592

 

 

 

24,014

 

 

 

25,232

 

Weighted average common shares outstanding, basic

 

27,612,538

 

 

 

27,430,761

 

 

 

27,019,625

 

 

 

24,953,764

 

 

 

24,942,389

 

Weighted average common shares outstanding, diluted

 

28,212,809

 

 

 

28,031,956

 

 

 

27,628,941

 

 

 

25,472,017

 

 

 

25,357,807

 

Diluted earnings per share

$

0.79

 

 

$

0.88

 

 

$

0.45

 

 

$

0.94

 

 

$

1.00

 

Diluted earnings per share, excluding merger costs (1)

$

0.84

 

 

$

0.90

 

 

$

0.53

 

 

$

0.94

 

 

$

1.00

 

Return on average total assets

 

1.13

%

 

 

1.26

%

 

 

0.64

%

 

 

1.26

%

 

 

1.34

%

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

 

1.19

%

 

 

1.29

%

 

 

0.76

%

 

 

1.26

%

 

 

1.34

%

Return on average stockholders' equity

 

8.79

%

 

 

10.03

%

 

 

5.15

%

 

 

11.19

%

 

 

12.03

%

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

 

9.27

%

 

 

10.28

%

 

 

6.11

%

 

 

11.19

%

 

 

12.03

%

Net interest margin

 

4.10

%

 

 

4.02

%

 

 

3.99

%

 

 

4.08

%

 

 

4.23

%

Net interest margin (FTE basis) (1)

 

4.16

%

 

 

4.08

%

 

 

4.06

%

 

 

4.15

%

 

 

4.30

%

Efficiency ratio

 

65.83

%

 

 

66.42

%

 

 

66.05

%

 

 

58.58

%

 

 

61.02

%

Efficiency ratio, excluding merger related expenses (1)

 

64.16

%

 

 

65.33

%

 

 

63.39

%

 

 

58.58

%

 

 

61.02

%

Noninterest income to total revenue (2)

 

22.5

%

 

 

24.2

%

 

 

24.4

%

 

 

19.3

%

 

 

20.3

%

Total assets

$

8,138,487

 

 

$

7,999,295

 

 

$

7,781,601

 

 

$

7,879,724

 

 

$

7,756,875

 

Total loans held-for-sale

 

72,247

 

 

 

66,571

 

 

 

56,813

 

 

 

54,212

 

 

 

51,465

 

Total loans held-for-investment

 

6,443,756

 

 

 

6,337,162

 

 

 

6,284,868

 

 

 

6,267,096

 

 

 

6,179,522

 

Total deposits

 

6,649,880

 

 

 

6,619,525

 

 

 

6,445,388

 

 

 

6,374,103

 

 

 

6,339,847

 

Total stockholders' equity

 

1,034,085

 

 

 

996,599

 

 

 

964,662

 

 

 

877,197

 

 

 

843,719

 

Loan to deposit ratio

 

96.9

%

 

 

95.7

%

 

 

97.5

%

 

 

98.3

%

 

 

97.5

%

Period end common shares outstanding

 

27,665,918

 

 

 

27,443,246

 

 

 

27,442,943

 

 

 

24,960,639

 

 

 

24,942,645

 

Book value per share

$

37.38

 

 

$

36.31

 

 

$

35.15

 

 

$

35.14

 

 

$

33.83

 

Tangible book value per share (1)

$

33.68

 

 

$

32.56

 

 

$

31.37

 

 

$

30.96

 

 

$

29.60

 

(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, 2024

 

September 30, 2023

Net interest income

$

219,863

 

 

$

221,362

 

Provision for credit losses

 

22,700

 

 

 

11,672

 

Noninterest income

 

68,157

 

 

 

61,871

 

Noninterest expense

 

190,367

 

 

 

170,485

 

Income before income taxes

 

74,953

 

 

 

101,076

 

Provision for income taxes

 

15,675

 

 

 

21,557

 

Net income

 

59,278

 

 

 

79,519

 

Net income, excluding merger costs (1)

 

63,428

 

 

 

79,519

 

Weighted average common shares outstanding, basic

 

27,355,098

 

 

 

24,933,168

 

Weighted average common shares outstanding, diluted

 

27,976,215

 

 

 

25,365,297

 

Diluted earnings per share

$

2.12

 

 

$

3.13

 

Diluted earnings per share, excluding merger costs (1)

$

2.27

 

 

$

3.13

 

Return on average total assets

 

1.01

%

 

 

1.42

%

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

 

1.08

%

 

 

1.42

%

Return on average stockholders' equity

 

8.02

%

 

 

12.97

%

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

 

8.58

%

 

 

12.97

%

Net interest margin

 

4.04

%

 

 

4.28

%

Net interest margin (FTE basis) (1)

 

4.10

%

 

 

4.36

%

Efficiency ratio

 

66.10

%

 

 

60.19

%

Efficiency ratio, excluding merger related expenses (1)

 

64.30

%

 

 

60.19

%

Noninterest income to total revenue (2)

 

23.7

%

 

 

21.8

%

Total assets

$

8,138,487

 

 

$

7,756,875

 

Total loans held-for-sale

 

72,247

 

 

 

51,465

 

Total loans held-for-investment

 

6,443,756

 

 

 

6,179,522

 

Total deposits

 

6,649,880

 

 

 

6,339,847

 

Total stockholders' equity

 

1,034,085

 

 

 

843,719

 

Loan to deposit ratio

 

96.9

%

 

 

97.5

%

Period end common shares outstanding

 

27,665,918

 

 

 

24,942,645

 

Book value per share

$

37.38

 

 

$

33.83

 

Tangible book value per share (1)

$

33.68

 

 

$

29.60

 

(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 nine months ended

($ in thousands, except per share amounts)

September 30, 2024

 

September 30, 2023

 

September 30, 2024

 

September 30, 2023

Total interest income

$

118,932

 

$

106,775

 

$

343,501

 

$

303,710

Total interest expense

 

42,774

 

 

33,365

 

 

123,638

 

 

82,348

Net interest income

 

76,158

 

 

73,410

 

 

219,863

 

 

221,362

Provision for credit losses

 

5,000

 

 

3,890

 

 

22,700

 

 

11,672

Net interest income after provision for credit losses

 

71,158

 

 

69,520

 

 

197,163

 

 

209,690

Noninterest income:

 

 

 

 

 

 

 

Service charges on deposits

 

6,240

 

 

5,475

 

 

17,954

 

 

15,848

Credit and debit card fees

 

2,806

 

 

2,996

 

 

8,616

 

 

9,034

Trust and investment advisory fees

 

1,395

 

 

1,398

 

 

4,351

 

 

4,337

Mortgage banking income, net

 

8,838

 

 

7,413

 

 

29,383

 

 

26,501

Other noninterest income

 

2,796

 

 

1,368

 

 

7,853

 

 

6,151

Total noninterest income

 

22,075

 

 

18,650

 

 

68,157

 

 

61,871

Noninterest expense:

 

 

 

 

 

 

 

Salaries and benefits

 

39,306

 

 

33,968

 

 

116,487

 

 

103,073

Occupancy and equipment

 

9,121

 

 

8,487

 

 

26,417

 

 

24,977

Amortization of intangible assets

 

651

 

 

899

 

 

2,118

 

 

3,993

Merger related expenses

 

1,633

 

 

—

 

 

5,168

 

 

—

Other noninterest expenses

 

13,953

 

 

12,822

 

 

40,177

 

 

38,442

Total noninterest expense

 

64,664

 

 

56,176

 

 

190,367

 

 

170,485

Income before income taxes

 

28,569

 

 

31,994

 

 

74,953

 

 

101,076

Provision for income taxes

 

6,147

 

 

6,762

 

 

15,675

 

 

21,557

Net income

$

22,422

 

$

25,232

 

$

59,278

 

$

79,519

Earnings per share - basic

$

0.81

 

$

1.01

 

$

2.17

 

$

3.19

Earnings per share - diluted

$

0.79

 

$

1.00

 

$

2.12

 

$

3.13

 

 

For the quarter ended

($ in thousands, except per share amounts)

September 30, 2024

 

June 30, 2024

 

March 31, 2024

 

December 31, 2023

 

September 30, 2023

Total interest income

$

118,932

 

$

114,529

 

$

110,040

 

$

109,974

 

$

106,775

Total interest expense

 

42,774

 

 

41,630

 

 

39,234

 

 

37,905

 

 

33,365

Net interest income

 

76,158

 

 

72,899

 

 

70,806

 

 

72,069

 

 

73,410

Provision for credit losses

 

5,000

 

 

1,200

 

 

16,500

 

 

6,575

 

 

3,890

Net interest income after provision for credit losses

 

71,158

 

 

71,699

 

 

54,306

 

 

65,494

 

 

69,520

Noninterest income:

 

 

 

 

 

 

 

 

 

Service charges on deposits

 

6,240

 

 

5,946

 

 

5,768

 

 

5,497

 

 

5,475

Credit and debit card fees

 

2,806

 

 

3,007

 

 

2,803

 

 

2,966

 

 

2,996

Trust and investment advisory fees

 

1,395

 

 

1,493

 

 

1,463

 

 

1,356

 

 

1,398

Mortgage banking income, net

 

8,838

 

 

11,043

 

 

9,502

 

 

4,883

 

 

7,413

Other noninterest income

 

2,796

 

 

1,785

 

 

3,272

 

 

2,519

 

 

1,368

Total noninterest income

 

22,075

 

 

23,274

 

 

22,808

 

 

17,221

 

 

18,650

Noninterest expense:

 

 

 

 

 

 

 

 

 

Salaries and benefits

 

39,306

 

 

39,828

 

 

37,353

 

 

30,158

 

 

33,968

Occupancy and equipment

 

9,121

 

 

8,701

 

 

8,595

 

 

8,449

 

 

8,487

Amortization of intangible assets

 

651

 

 

652

 

 

815

 

 

829

 

 

899

Merger related expenses

 

1,633

 

 

1,046

 

 

2,489

 

 

—

 

 

—

Other noninterest expenses

 

13,953

 

 

13,648

 

 

12,576

 

 

12,872

 

 

12,822

Total noninterest expense

 

64,664

 

 

63,875

 

 

61,828

 

 

52,308

 

 

56,176

Income before income taxes

 

28,569

 

 

31,098

 

 

15,286

 

 

30,407

 

 

31,994

Provision for income taxes

 

6,147

 

 

6,538

 

 

2,990

 

 

6,393

 

 

6,762

Net income

$

22,422

 

$

24,560

 

$

12,296

 

$

24,014

 

$

25,232

Earnings per share - basic

$

0.81

 

$

0.90

 

$

0.46

 

$

0.96

 

$

1.01

Earnings per share - diluted

$

0.79

 

$

0.88

 

$

0.45

 

$

0.94

 

$

1.00

 

Condensed Consolidated Balance Sheets as of (Unaudited):

($ in thousands)

September 30, 2024

 

June 30, 2024

 

March 31, 2024

 

December 31, 2023

 

September 30, 2023

Assets

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

$

573,674

 

 

$

535,766

 

 

$

383,605

 

 

$

479,362

 

 

$

443,887

 

Securities available-for-sale, at fair value

 

496,811

 

 

 

491,649

 

 

 

499,078

 

 

 

516,757

 

 

 

495,992

 

Securities held-to-maturity

 

35,885

 

 

 

36,310

 

 

 

36,640

 

 

 

36,983

 

 

 

37,410

 

Loans held-for-sale, at fair value

 

72,247

 

 

 

66,571

 

 

 

56,813

 

 

 

54,212

 

 

 

51,465

 

Loans

 

6,443,756

 

 

 

6,337,162

 

 

 

6,284,868

 

 

 

6,267,096

 

 

 

6,179,522

 

Allowance for credit losses

 

(83,159

)

 

 

(78,960

)

 

 

(79,829

)

 

 

(80,398

)

 

 

(78,666

)

Loans, net

 

6,360,597

 

 

 

6,258,202

 

 

 

6,205,039

 

 

 

6,186,698

 

 

 

6,100,856

 

Mortgage servicing rights, at fair value

 

78,799

 

 

 

80,744

 

 

 

78,416

 

 

 

76,701

 

 

 

81,036

 

Premises and equipment, net

 

82,532

 

 

 

83,320

 

 

 

84,063

 

 

 

84,842

 

 

 

83,733

 

Other real estate owned and foreclosed assets, net

 

4,478

 

 

 

4,497

 

 

 

4,414

 

 

 

4,100

 

 

 

8,395

 

Goodwill

 

93,483

 

 

 

93,483

 

 

 

93,483

 

 

 

93,483

 

 

 

93,483

 

Intangible assets, net

 

8,866

 

 

 

9,517

 

 

 

10,168

 

 

 

10,984

 

 

 

11,813

 

All other assets

 

331,115

 

 

 

339,236

 

 

 

329,882

 

 

 

335,602

 

 

 

348,805

 

Total assets

$

8,138,487

 

 

$

7,999,295

 

 

$

7,781,601

 

 

$

7,879,724

 

 

$

7,756,875

 

Liabilities and Stockholders' Equity

 

 

 

 

 

 

 

 

 

Liabilities:

 

 

 

 

 

 

 

 

 

Deposits:

 

 

 

 

 

 

 

 

 

Noninterest-bearing demand deposit accounts

$

1,554,762

 

 

$

1,562,308

 

 

$

1,517,315

 

 

$

1,530,506

 

 

$

1,610,650

 

Interest-bearing deposit accounts:

 

 

 

 

 

 

 

 

 

Interest-bearing demand accounts

 

645,647

 

 

 

538,232

 

 

 

542,184

 

 

 

534,540

 

 

 

440,845

 

Savings and money market accounts

 

2,608,808

 

 

 

2,505,439

 

 

 

2,473,255

 

 

 

2,446,632

 

 

 

2,476,097

 

NOW accounts

 

41,234

 

 

 

42,687

 

 

 

39,181

 

 

 

56,819

 

 

 

35,686

 

Certificate of deposit accounts

 

1,799,429

 

 

 

1,970,859

 

 

 

1,873,453

 

 

 

1,805,606

 

 

 

1,776,569

 

Total deposits

 

6,649,880

 

 

 

6,619,525

 

 

 

6,445,388

 

 

 

6,374,103

 

 

 

6,339,847

 

Securities sold under agreements to repurchase

 

10,913

 

 

 

20,408

 

 

 

20,423

 

 

 

24,693

 

 

 

25,868

 

Federal Home Loan Bank advances

 

215,000

 

 

 

145,000

 

 

 

144,810

 

 

 

389,468

 

 

 

330,000

 

Other borrowings

 

75,709

 

 

 

75,577

 

 

 

75,445

 

 

 

75,313

 

 

 

75,180

 

Other liabilities

 

152,900

 

 

 

142,186

 

 

 

130,873

 

 

 

138,950

 

 

 

142,261

 

Total liabilities

 

7,104,402

 

 

 

7,002,696

 

 

 

6,816,939

 

 

 

7,002,527

 

 

 

6,913,156

 

Stockholders' equity:

 

 

 

 

 

 

 

 

 

Preferred stock

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Common stock

 

3

 

 

 

3

 

 

 

3

 

 

 

2

 

 

 

2

 

Additional paid-in capital

 

547,271

 

 

 

543,339

 

 

 

542,582

 

 

 

462,680

 

 

 

462,507

 

Retained earnings

 

516,800

 

 

 

494,378

 

 

 

469,818

 

 

 

457,522

 

 

 

433,508

 

Accumulated other comprehensive loss, net

 

(29,989

)

 

 

(41,121

)

 

 

(47,741

)

 

 

(43,007

)

 

 

(52,298

)

Total stockholders' equity

 

1,034,085

 

 

 

996,599

 

 

 

964,662

 

 

 

877,197

 

 

 

843,719

 

Total liabilities and stockholders' equity

$

8,138,487

 

 

$

7,999,295

 

 

$

7,781,601

 

 

$

7,879,724

 

 

$

7,756,875

 

 

Consolidated Capital Ratios as of:

 

September 30, 2024

 

June 30, 2024

 

March 31, 2024

 

December 31, 2023

 

September 30, 2023

Stockholders' equity to total assets

12.71 %

 

12.46 %

 

12.40 %

 

11.13 %

 

10.88 %

Tangible stockholders' equity to tangible assets (1)

11.59 %

 

11.32 %

 

11.21 %

 

9.94 %

 

9.65 %

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

11.56 %

 

11.27 %

 

11.17 %

 

9.90 %

 

9.59 %

Tier 1 leverage ratio

11.96 %

 

11.83 %

 

11.73 %

 

10.52 %

 

10.37 %

Common equity tier 1 risk-based capital ratio

13.06 %

 

12.80 %

 

12.54 %

 

11.10 %

 

10.79 %

Tier 1 risk-based capital ratio

13.06 %

 

12.80 %

 

12.54 %

 

11.10 %

 

10.79 %

Total risk-based capital ratio

15.25 %

 

14.95 %

 

14.73 %

 

13.25 %

 

12.93 %

(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 nine months ended

 

September 30, 2024

 

September 30, 2023

 

September 30, 2024

 

September 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)

 

6,460,484

 

6.71 %

 

 

6,180,684

 

6.44 %

 

 

6,386,620

 

6.59 %

 

 

6,144,057

 

6.15 %

Investment securities

 

527,241

 

3.62 %

 

 

545,257

 

3.10 %

 

 

532,562

 

3.51 %

 

 

559,855

 

3.00 %

Interest-bearing cash and other assets

 

442,632

 

5.17 %

 

 

221,559

 

5.39 %

 

 

343,911

 

5.26 %

 

 

187,468

 

5.41 %

Total earning assets

 

7,430,357

 

6.40 %

 

 

6,947,500

 

6.15 %

 

 

7,263,093

 

6.31 %

 

 

6,891,380

 

5.88 %

Other assets

 

534,740

 

 

 

 

557,988

 

 

 

 

543,916

 

 

 

 

553,628

 

 

Total assets

$

7,965,097

 

 

 

$

7,505,488

 

 

 

$

7,807,009

 

 

 

$

7,445,008

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest-bearing liabilities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Demand and NOW deposits

$

657,537

 

3.75 %

 

$

466,837

 

3.27 %

 

$

609,632

 

3.70 %

 

$

343,112

 

2.79 %

Savings deposits

 

411,526

 

0.72 %

 

 

439,172

 

0.62 %

 

 

415,687

 

0.70 %

 

 

452,298

 

0.48 %

Money market deposits

 

2,140,552

 

2.25 %

 

 

2,026,028

 

1.58 %

 

 

2,098,927

 

2.06 %

 

 

2,142,301

 

1.18 %

Certificates of deposits

 

1,800,502

 

4.58 %

 

 

1,748,515

 

4.21 %

 

 

1,812,839

 

4.62 %

 

 

1,407,264

 

3.61 %

Total deposits

 

5,010,117

 

3.16 %

 

 

4,680,552

 

2.64 %

 

 

4,937,085

 

3.09 %

 

 

4,344,975

 

2.02 %

Repurchase agreements

 

13,528

 

1.29 %

 

 

26,549

 

0.98 %

 

 

17,099

 

1.15 %

 

 

29,953

 

0.73 %

Total deposits and repurchase agreements

 

5,023,645

 

3.16 %

 

 

4,707,101

 

2.63 %

 

 

4,954,184

 

3.08 %

 

 

4,374,928

 

2.01 %

FHLB borrowings

 

135,641

 

5.61 %

 

 

84,332

 

5.40 %

 

 

125,799

 

5.61 %

 

 

335,485

 

5.00 %

Other long-term borrowings

 

75,654

 

6.58 %

 

 

78,680

 

6.44 %

 

 

75,522

 

6.59 %

 

 

79,801

 

6.36 %

Total interest-bearing liabilities

 

5,234,940

 

3.27 %

 

 

4,870,113

 

2.74 %

 

 

5,155,505

 

3.20 %

 

 

4,790,214

 

2.29 %

Noninterest-bearing deposits

 

1,568,685

 

 

 

 

1,654,090

 

 

 

 

1,529,793

 

 

 

 

1,705,392

 

 

Other liabilities

 

141,206

 

 

 

 

142,027

 

 

 

 

136,491

 

 

 

 

131,628

 

 

Stockholders' equity

 

1,020,266

 

 

 

 

839,258

 

 

 

 

985,220

 

 

 

 

817,774

 

 

Total liabilities and stockholders' equity

$

7,965,097

 

 

 

$

7,505,488

 

 

 

$

7,807,009

 

 

 

$

7,445,008

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net interest spread

 

 

3.13 %

 

 

 

3.41 %

 

 

 

3.11 %

 

 

 

3.59 %

Net interest margin

 

 

4.10 %

 

 

 

4.23 %

 

 

 

4.04 %

 

 

 

4.28 %

Net interest margin (on FTE basis) (2)

 

 

4.16 %

 

 

 

4.30 %

 

 

 

4.10 %

 

 

 

4.36 %

(1)

Includes loans held-for-investment, including nonaccrual loans, and loans held-for-sale.

(2)

Represents a non-GAAP financial measure. See the tables beginning on page 15 for a reconciliation of each non-GAAP measure to the most comparable GAAP equivalent.

 

 

For the quarter ended

 

September 30, 2024

 

June 30, 2024

 

March 31, 2024

 

December 31, 2023

 

September 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)

 

6,460,484

 

6.71 %

 

 

6,384,709

 

6.59 %

 

 

6,313,855

 

6.48 %

 

 

6,280,362

 

6.51 %

 

 

6,180,684

 

6.44 %

Investment securities

 

527,241

 

3.62 %

 

 

523,545

 

3.65 %

 

 

546,960

 

3.28 %

 

 

538,348

 

3.28 %

 

 

545,257

 

3.10 %

Interest-bearing cash and other assets

 

442,632

 

5.17 %

 

 

348,509

 

5.25 %

 

 

239,508

 

5.49 %

 

 

247,978

 

5.50 %

 

 

221,559

 

5.39 %

Total earning assets

 

7,430,357

 

6.40 %

 

 

7,256,763

 

6.31 %

 

 

7,100,323

 

6.20 %

 

 

7,066,688

 

6.22 %

 

 

6,947,500

 

6.15 %

Other assets

 

534,740

 

 

 

 

548,465

 

 

 

 

548,642

 

 

 

 

563,368

 

 

 

 

557,988

 

 

Total assets

$

7,965,097

 

 

 

$

7,805,228

 

 

 

$

7,648,965

 

 

 

$

7,630,056

 

 

 

$

7,505,488

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest-bearing liabilities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Demand and NOW deposits

$

657,537

 

3.75 %

 

$

621,343

 

3.80 %

 

$

549,491

 

3.54 %

 

$

510,982

 

3.45 %

 

$

466,837

 

3.27 %

Savings deposits

 

411,526

 

0.72 %

 

 

413,699

 

0.69 %

 

 

421,882

 

0.69 %

 

 

457,679

 

0.93 %

 

 

439,172

 

0.62 %

Money market deposits

 

2,140,552

 

2.25 %

 

 

2,092,449

 

2.01 %

 

 

2,063,321

 

1.93 %

 

 

2,063,383

 

1.82 %

 

 

2,026,028

 

1.58 %

Certificates of deposits

 

1,800,502

 

4.58 %

 

 

1,823,522

 

4.69 %

 

 

1,814,629

 

4.60 %

 

 

1,825,325

 

4.54 %

 

 

1,748,515

 

4.21 %

Total deposits

 

5,010,117

 

3.16 %

 

 

4,951,013

 

3.11 %

 

 

4,849,323

 

3.00 %

 

 

4,857,369

 

2.93 %

 

 

4,680,552

 

2.64 %

Repurchase agreements

 

13,528

 

1.29 %

 

 

16,553

 

1.15 %

 

 

21,254

 

1.06 %

 

 

23,457

 

1.06 %

 

 

26,549

 

0.98 %

Total deposits and repurchase agreements

 

5,023,645

 

3.16 %

 

 

4,967,566

 

3.10 %

 

 

4,870,577

 

2.99 %

 

 

4,880,826

 

2.92 %

 

 

4,707,101

 

2.63 %

FHLB borrowings

 

135,641

 

5.61 %

 

 

130,871

 

5.67 %

 

 

110,777

 

5.56 %

 

 

74,146

 

5.64 %

 

 

84,332

 

5.40 %

Other long-term borrowings

 

75,654

 

6.58 %

 

 

75,522

 

6.59 %

 

 

75,389

 

6.62 %

 

 

75,249

 

6.62 %

 

 

78,680

 

6.44 %

Total interest-bearing liabilities

 

5,234,940

 

3.27 %

 

 

5,173,959

 

3.22 %

 

 

5,056,743

 

3.10 %

 

 

5,030,221

 

3.01 %

 

 

4,870,113

 

2.74 %

Noninterest-bearing deposits

 

1,568,685

 

 

 

 

1,517,560

 

 

 

 

1,502,707

 

 

 

 

1,597,672

 

 

 

 

1,654,090

 

 

Other liabilities

 

141,206

 

 

 

 

133,845

 

 

 

 

134,370

 

 

 

 

143,416

 

 

 

 

142,027

 

 

Stockholders' equity

 

1,020,266

 

 

 

 

979,864

 

 

 

 

955,145

 

 

 

 

858,747

 

 

 

 

839,258

 

 

Total liabilities and stockholders' equity

$

7,965,097

 

 

 

$

7,805,228

 

 

 

$

7,648,965

 

 

 

$

7,630,056

 

 

 

$

7,505,488

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net interest spread

 

 

3.13 %

 

 

 

3.09 %

 

 

 

3.10 %

 

 

 

3.21 %

 

 

 

3.41 %

Net interest margin

 

 

4.10 %

 

 

 

4.02 %

 

 

 

3.99 %

 

 

 

4.08 %

 

 

 

4.23 %

Net interest margin (on FTE basis) (2)

 

 

4.16 %

 

 

 

4.08 %

 

 

 

4.06 %

 

 

 

4.15 %

 

 

 

4.30 %

(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, 2024

 

June 30, 2024

 

March 31, 2024

 

December 31, 2023

 

September 30, 2023

Consumer

 

 

 

 

 

 

 

 

 

Noninterest bearing deposit accounts

$

397,880

 

$

414,795

 

$

356,732

 

$

360,168

 

$

366,366

Interest-bearing deposit accounts:

 

 

 

 

 

 

 

 

 

Demand and NOW deposits

 

61,929

 

 

42,903

 

 

38,625

 

 

36,162

 

 

33,340

Savings deposits

 

331,811

 

 

334,741

 

 

340,086

 

 

343,291

 

 

356,890

Money market deposits

 

1,333,486

 

 

1,243,355

 

 

1,229,239

 

 

1,196,645

 

 

1,149,365

Certificates of deposits

 

1,247,348

 

 

1,438,792

 

 

1,437,590

 

 

1,437,537

 

 

1,366,255

Total interest-bearing deposit accounts

 

2,974,574

 

 

3,059,791

 

 

3,045,540

 

 

3,013,635

 

 

2,905,850

Total consumer deposits

$

3,372,454

 

$

3,474,586

 

$

3,402,272

 

$

3,373,803

 

$

3,272,216

Business

 

 

 

 

 

 

 

 

 

Noninterest bearing deposit accounts

$

1,156,882

 

$

1,147,513

 

$

1,160,583

 

$

1,170,338

 

$

1,244,284

Interest-bearing deposit accounts:

 

 

 

 

 

 

 

 

 

Demand and NOW deposits

 

624,952

 

 

538,016

 

 

502,726

 

 

555,197

 

 

443,191

Savings deposits

 

77,744

 

 

77,931

 

 

80,226

 

 

80,802

 

 

85,234

Money market deposits

 

865,767

 

 

849,412

 

 

823,704

 

 

825,811

 

 

859,516

Certificates of deposits

 

62,187

 

 

90,189

 

 

97,854

 

 

87,407

 

 

77,228

Total interest-bearing deposit accounts

 

1,630,650

 

 

1,555,548

 

 

1,504,510

 

 

1,549,217

 

 

1,465,169

Total business deposits

$

2,787,532

 

$

2,703,061

 

$

2,665,093

 

$

2,719,555

 

$

2,709,453

Wholesale deposits (1)

$

489,894

 

$

441,878

 

$

378,023

 

$

280,745

 

$

358,178

Total deposits

$

6,649,880

 

$

6,619,525

 

$

6,445,388

 

$

6,374,103

 

$

6,339,847

(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, 2024

 

June 30, 2024

 

March 31, 2024

 

December 31, 2023

 

September 30, 2023

Cash to total assets (1)

6.90 %

 

6.60 %

 

4.80 %

 

6.00 %

 

5.60 %

Loan to deposit ratio

96.9 %

 

95.7 %

 

97.5 %

 

98.3 %

 

97.5 %

Uninsured deposits to total deposits (2)

32.7 %

 

32.1 %

 

32.0 %

 

31.2 %

 

32.0 %

Uninsured and uncollateralized deposits to total deposits (2)

26.8 %

 

25.5 %

 

25.2 %

 

25.1 %

 

25.4 %

Wholesale deposits and borrowings to total liabilities (3)

9.9 %

 

8.4 %

 

7.7 %

 

9.6 %

 

10.0 %

(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, 2024

 

June 30, 2024

 

March 31, 2024

 

December 31, 2023

 

September 30, 2023

Commercial and industrial

$

2,527,636

 

$

2,431,110

 

$

2,480,078

 

$

2,467,688

 

$

2,459,358

Commercial real estate:

 

 

 

 

 

 

 

 

 

Non-owner occupied

 

821,670

 

 

866,999

 

 

836,515

 

 

812,235

 

 

767,135

Owner occupied

 

700,325

 

 

660,511

 

 

642,930

 

 

635,365

 

 

631,352

Construction and land

 

333,457

 

 

350,878

 

 

326,447

 

 

345,430

 

 

329,433

Multifamily

 

95,125

 

 

94,220

 

 

94,898

 

 

103,066

 

 

114,535

Total commercial real estate

 

1,950,577

 

 

1,972,608

 

 

1,900,790

 

 

1,896,096

 

 

1,842,455

Residential real estate

 

1,172,459

 

 

1,146,989

 

 

1,109,676

 

 

1,110,610

 

 

1,059,074

Public Finance

 

536,776

 

 

537,872

 

 

579,991

 

 

602,913

 

 

602,844

Consumer

 

45,267

 

 

42,129

 

 

40,317

 

 

36,371

 

 

37,681

Other

 

211,041

 

 

206,454

 

 

174,016

 

 

153,418

 

 

178,110

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

$

6,443,756

 

$

6,337,162

 

$

6,284,868

 

$

6,267,096

 

$

6,179,522

 

Asset Quality:

 

As of and for the quarter ended

($ in thousands)

September 30, 2024

 

June 30, 2024

 

March 31, 2024

 

December 31, 2023

 

September 30, 2023

Net charge-offs

$

1,401

 

 

$

2,009

 

 

$

17,429

 

 

$

4,743

 

 

$

2,296

 

Allowance for credit losses

$

83,159

 

 

$

78,960

 

 

$

79,829

 

 

$

80,398

 

 

$

78,666

 

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

$

65,824

 

 

$

62,558

 

 

$

57,599

 

 

$

63,143

 

 

$

40,743

 

Nonperforming assets

$

70,302

 

 

$

67,055

 

 

$

62,013

 

 

$

67,243

 

 

$

49,138

 

Ratio of net charge-offs to average loans outstanding

 

0.09

%

 

 

0.13

%

 

 

1.11

%

 

 

0.30

%

 

 

0.15

%

Allowance for credit losses to total loans outstanding

 

1.29

%

 

 

1.25

%

 

 

1.27

%

 

 

1.28

%

 

 

1.27

%

Allowance for credit losses to total nonperforming loans

 

126.34

%

 

 

126.22

%

 

 

138.59

%

 

 

127.33

%

 

 

193.08

%

Nonperforming loans to total loans

 

1.02

%

 

 

0.99

%

 

 

0.92

%

 

 

1.01

%

 

 

0.66

%

Nonperforming assets to total assets

 

0.86

%

 

 

0.84

%

 

 

0.80

%

 

 

0.85

%

 

 

0.63

%

 

Non-GAAP Financial Measures and Reconciliations:

 

As of and for the quarter ended

 

As of and for the nine months ended

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

September 30, 2024

 

June 30, 2024

 

March 31, 2024

 

December 31, 2023

 

September 30, 2023

 

September 30, 2024

 

September 30, 2023

Tangible stockholders’ equity:

Total stockholders' equity (GAAP)

$

1,034,085

 

 

$

996,599

 

 

$

964,662

 

 

$

877,197

 

 

$

843,719

 

 

$

1,034,085

 

 

$

843,719

 

Less: Goodwill and other intangible assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

Goodwill

 

(93,483

)

 

 

(93,483

)

 

 

(93,483

)

 

 

(93,483

)

 

 

(93,483

)

 

 

(93,483

)

 

 

(93,483

)

Other intangible assets

 

(8,866

)

 

 

(9,517

)

 

 

(10,168

)

 

 

(10,984

)

 

 

(11,813

)

 

 

(8,866

)

 

 

(11,813

)

Tangible stockholders' equity (non-GAAP)

$

931,736

 

 

$

893,599

 

 

$

861,011

 

 

$

772,730

 

 

$

738,423

 

 

$

931,736

 

 

$

738,423

 

Tangible assets:

Total assets (GAAP)

$

8,138,487

 

 

$

7,999,295

 

 

$

7,781,601

 

 

$

7,879,724

 

 

$

7,756,875

 

 

$

8,138,487

 

 

$

7,756,875

 

Less: Goodwill and other intangible assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

Goodwill

 

(93,483

)

 

 

(93,483

)

 

 

(93,483

)

 

 

(93,483

)

 

 

(93,483

)

 

 

(93,483

)

 

 

(93,483

)

Other intangible assets

 

(8,866

)

 

 

(9,517

)

 

 

(10,168

)

 

 

(10,984

)

 

 

(11,813

)

 

 

(8,866

)

 

 

(11,813

)

Tangible assets (non-GAAP)

$

8,036,138

 

 

$

7,896,295

 

 

$

7,677,950

 

 

$

7,775,257

 

 

$

7,651,579

 

 

$

8,036,138

 

 

$

7,651,579

 

Tangible stockholders’ equity to tangible assets:

Total stockholders' equity to total assets (GAAP)

 

12.71

%

 

 

12.46

%

 

 

12.40

%

 

 

11.13

%

 

 

10.88

%

 

 

12.71

%

 

 

10.88

%

Less: Impact of goodwill and other intangible assets

 

(1.12

)%

 

 

(1.14

)%

 

 

(1.19

)%

 

 

(1.19

)%

 

 

(1.23

)%

 

 

(1.12

)%

 

 

(1.23

)%

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

 

11.59

%

 

 

11.32

%

 

 

11.21

%

 

 

9.94

%

 

 

9.65

%

 

 

11.59

%

 

 

9.65

%

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

Tangible stockholders' equity (non-GAAP)

$

931,736

 

 

$

893,599

 

 

$

861,011

 

 

$

772,730

 

 

$

738,423

 

 

$

931,736

 

 

$

738,423

 

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

 

(2,852

)

 

 

(3,949

)

 

 

(4,236

)

 

 

(3,629

)

 

 

(5,001

)

 

 

(2,852

)

 

 

(5,001

)

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

$

928,884

 

 

$

889,650

 

 

$

856,775

 

 

$

769,101

 

 

$

733,422

 

 

$

928,884

 

 

$

733,422

 

Tangible assets (non-GAAP)

$

8,036,138

 

 

$

7,896,295

 

 

$

7,677,950

 

 

$

7,775,257

 

 

$

7,651,579

 

 

$

8,036,138

 

 

$

7,651,579

 

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

 

(2,852

)

 

 

(3,949

)

 

 

(4,236

)

 

 

(3,629

)

 

 

(5,001

)

 

 

(2,852

)

 

 

(5,001

)

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

$

8,033,286

 

 

$

7,892,346

 

 

$

7,673,714

 

 

$

7,771,628

 

 

$

7,646,578

 

 

$

8,033,286

 

 

$

7,646,578

 

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

 

11.59

%

 

 

11.32

%

 

 

11.21

%

 

 

9.94

%

 

 

9.65

%

 

 

11.59

%

 

 

9.65

%

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

 

(0.03

)%

 

 

(0.05

)%

 

 

(0.04

)%

 

 

(0.04

)%

 

 

(0.06

)%

 

 

(0.03

)%

 

 

(0.06

)%

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

 

11.56

%

 

 

11.27

%

 

 

11.17

%

 

 

9.90

%

 

 

9.59

%

 

 

11.56

%

 

 

9.59

%

Tangible book value per share:

Total stockholders' equity (GAAP)

$

1,034,085

 

 

$

996,599

 

 

$

964,662

 

 

$

877,197

 

 

$

843,719

 

 

$

1,034,085

 

 

$

843,719

 

Tangible stockholders' equity (non-GAAP)

$

931,736

 

 

$

893,599

 

 

$

861,011

 

 

$

772,730

 

 

$

738,423

 

 

$

931,736

 

 

$

738,423

 

Total shares outstanding

 

27,665,918

 

 

 

27,443,246

 

 

 

27,442,943

 

 

 

24,960,639

 

 

 

24,942,645

 

 

 

27,665,918

 

 

 

24,942,645

 

Book value per share (GAAP)

$

37.38

 

 

$

36.31

 

 

$

35.15

 

 

$

35.14

 

 

$

33.83

 

 

$

37.38

 

 

$

33.83

 

Tangible book value per share (non-GAAP)

$

33.68

 

 

$

32.56

 

 

$

31.37

 

 

$

30.96

 

 

$

29.60

 

 

$

33.68

 

 

$

29.60

 

Net income excluding merger costs:

Net income (GAAP)

$

22,422

 

 

$

24,560

 

 

$

12,296

 

 

$

24,014

 

 

$

25,232

 

 

$

59,278

 

 

$

79,519

 

Add: Merger costs

 

 

 

 

 

 

 

 

 

 

 

 

 

Merger related expenses

 

1,633

 

 

 

1,046

 

 

 

2,489

 

 

 

—

 

 

 

—

 

 

 

5,168

 

 

 

—

 

Income tax effect on merger related expenses

 

(400

)

 

 

(425

)

 

 

(193

)

 

 

—

 

 

 

—

 

 

 

(1,018

)

 

 

—

 

Total merger costs, net of tax

 

1,233

 

 

 

621

 

 

 

2,296

 

 

 

—

 

 

 

—

 

 

 

4,150

 

 

 

—

 

Net income excluding merger costs (non-GAAP)

$

23,655

 

 

$

25,181

 

 

$

14,592

 

 

$

24,014

 

 

$

25,232

 

 

$

63,428

 

 

$

79,519

 

Return on average total assets excluding merger costs:

Return on average total assets (ROAA) (GAAP)

 

1.13

%

 

 

1.26

%

 

 

0.64

%

 

 

1.26

%

 

 

1.34

%

 

 

1.01

%

 

 

1.42

%

Add: Impact of merger costs, net of tax

 

0.06

%

 

 

0.03

%

 

 

0.12

%

 

 

—

%

 

 

—

%

 

 

0.07

%

 

 

—

%

ROAA excluding merger costs (non-GAAP)

 

1.19

%

 

 

1.29

%

 

 

0.76

%

 

 

1.26

%

 

 

1.34

%

 

 

1.08

%

 

 

1.42

%

Return on average stockholders’ equity excluding merger costs:

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

 

8.79

%

 

 

10.03

%

 

 

5.15

%

 

 

11.19

%

 

 

12.03

%

 

 

8.02

%

 

 

12.97

%

Add: Impact of merger costs, net of tax

 

0.48

%

 

 

0.25

%

 

 

0.96

%

 

 

—

%

 

 

—

%

 

 

0.56

%

 

 

—

%

ROAE excluding merger costs (non-GAAP)

 

9.27

%

 

 

10.28

%

 

 

6.11

%

 

 

11.19

%

 

 

12.03

%

 

 

8.58

%

 

 

12.97

%

Efficiency ratio excluding merger related expenses:

Efficiency ratio (GAAP)

 

65.83

%

 

 

66.42

%

 

 

66.05

%

 

 

58.58

%

 

 

61.02

%

 

 

66.10

%

 

 

60.19

%

Less: Impact of merger related expenses

 

(1.67

)%

 

 

(1.09

)%

 

 

(2.66

)%

 

 

—

%

 

 

—

%

 

 

(1.80

)%

 

 

—

%

Efficiency ratio excluding merger related expenses (non-GAAP)

 

64.16

%

 

 

65.33

%

 

 

63.39

%

 

 

58.58

%

 

 

61.02

%

 

 

64.30

%

 

 

60.19

%

Diluted earnings per share excluding merger costs:

Diluted earnings per share (GAAP)

$

0.79

 

 

$

0.88

 

 

$

0.45

 

 

$

0.94

 

 

$

1.00

 

 

$

2.12

 

 

$

3.13

 

Add: Impact of merger costs, net of tax

 

0.05

 

 

 

0.02

 

 

 

0.08

 

 

 

—

 

 

 

—

 

 

 

0.15

 

 

 

—

 

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

$

0.84

 

 

$

0.90

 

 

$

0.53

 

 

$

0.94

 

 

$

1.00

 

 

$

2.27

 

 

$

3.13

 

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

Net interest income (GAAP)

$

76,158

 

 

$

72,899

 

 

$

70,806

 

 

$

72,069

 

 

$

73,410

 

 

$

219,863

 

 

$

221,362

 

Gross income effect of tax exempt income

 

1,132

 

 

 

1,156

 

 

 

1,318

 

 

 

1,270

 

 

 

1,286

 

 

 

3,606

 

 

 

3,816

 

FTE net interest income (non-GAAP)

$

77,290

 

 

$

74,055

 

 

$

72,124

 

 

$

73,339

 

 

$

74,696

 

 

$

223,469

 

 

$

225,178

 

Average earning assets

$

7,430,357

 

 

$

7,256,763

 

 

$

7,100,323

 

 

$

7,066,688

 

 

$

6,947,500

 

 

$

7,263,093

 

 

$

6,891,380

 

Net interest margin

 

4.10

%

 

 

4.02

%

 

 

3.99

%

 

 

4.08

%

 

 

4.23

%

 

 

4.04

%

 

 

4.28

%

Net interest margin on FTE basis (non-GAAP)

 

4.16

%

 

 

4.08

%

 

 

4.06

%

 

 

4.15

%

 

 

4.30

%

 

 

4.10

%

 

 

4.36

%

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20241022703858/en/

Investor Contact: Ed Jacques Director of Investor Relations & Business Development, FirstSun 214.473.7958 | Investor.Relations@firstsuncb.com

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