FirstSun Capital Bancorp Reports First Quarter 2023 Results
First Quarter 2023 Highlights:
-
Net income of
,$26.3 million per diluted share$1.03 -
Net interest margin of
4.39% -
Return on average total assets of
1.44% -
Return on average stockholders’ equity of
13.37% -
Loan growth of
10.1% annualized -
20.3% fee revenue to total revenue
Neal Arnold, FirstSun’s President and Chief Executive Officer, commented, “We are very pleased with our strong operating results this quarter amidst a more challenging banking environment. Highlights this quarter include net interest margin of
First Quarter 2023 Results
Net income totaled
Net Interest Income and Net Interest Margin
Net interest income totaled
Average loans increased by
Asset Quality and Provision for Credit Losses
The provision for credit losses totaled
Net charge-offs during the first quarter of 2023 were
On January 1, 2023, we adopted ASU 2016-13, Financial Instruments - Credit Losses (Topic 326), which increased our allowance for credit losses as a percentage of total loans to
The ratio of nonperforming assets to total assets was
Noninterest Income
Noninterest income totaled
Noninterest Expense
Noninterest expense totaled
The efficiency ratio for the first quarter of 2023 was
Tax Rate
The effective tax rate was
Loans
Total loans were
Deposits
Average deposits were
Total uninsured and uncollateralized deposits were approximately
Capital
Capital ratios remain strong and above “well-capitalized” thresholds. As of March 31, 2023, our common equity tier 1 risk-based capital ratio was
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
- Tangible common stockholders’ equity;
- Tangible assets;
- Tangible common stockholders’ equity to tangible assets;
- Tangible common stockholders’ equity to tangible assets, reflecting net unrealized losses on HTM securities, net of tax;
- Tangible book value per common 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 beginning 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
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.
Summary Data:
|
As of and for the quarter ended |
||||||||||
($ in thousands, except per share amounts) |
March 31,
|
|
December 31,
|
|
March 31,
|
||||||
Net interest income |
$ |
74,117 |
|
|
$ |
73,276 |
|
|
$ |
41,285 |
|
Provision for credit losses |
|
3,360 |
|
|
|
5,600 |
|
|
|
3,700 |
|
Noninterest income |
|
18,931 |
|
|
|
18,618 |
|
|
|
23,693 |
|
Noninterest expense |
|
56,266 |
|
|
|
55,443 |
|
|
|
52,467 |
|
Income before income taxes |
|
33,422 |
|
|
|
30,851 |
|
|
|
8,811 |
|
Provision for income taxes |
|
7,141 |
|
|
|
6,281 |
|
|
|
1,142 |
|
Net income |
|
26,281 |
|
|
|
24,570 |
|
|
|
7,669 |
|
Net income, excluding merger costs (1) |
|
26,281 |
|
|
|
24,570 |
|
|
|
7,922 |
|
Diluted earnings per share |
$ |
1.03 |
|
|
$ |
0.96 |
|
|
$ |
0.41 |
|
Diluted earnings per share, excluding merger costs (1) |
$ |
1.03 |
|
|
$ |
0.96 |
|
|
$ |
0.42 |
|
Return on average total assets |
|
1.44 |
% |
|
|
1.38 |
% |
|
|
0.54 |
% |
Return on average total assets, excluding merger costs (1) |
|
1.44 |
% |
|
|
1.38 |
% |
|
|
0.56 |
% |
Return on average stockholders' equity |
|
13.37 |
% |
|
|
12.89 |
% |
|
|
5.85 |
% |
Return on average stockholders’ equity, excluding merger costs (1) |
|
13.37 |
% |
|
|
12.89 |
% |
|
|
6.04 |
% |
Net interest margin |
|
4.39 |
% |
|
|
4.45 |
% |
|
|
3.08 |
% |
Net interest margin (FTE basis) (1) |
|
4.46 |
% |
|
|
4.52 |
% |
|
|
3.17 |
% |
Efficiency ratio |
|
60.47 |
% |
|
|
60.33 |
% |
|
|
80.75 |
% |
Efficiency ratio, excluding merger related expenses (1) |
|
60.47 |
% |
|
|
60.33 |
% |
|
|
80.28 |
% |
Fee revenue to total revenue |
|
20.35 |
% |
|
|
20.26 |
% |
|
|
36.46 |
% |
Total assets |
$ |
7,610,456 |
|
|
$ |
7,430,322 |
|
|
$ |
5,733,748 |
|
Total loans held-for-sale |
|
66,255 |
|
|
|
57,323 |
|
|
|
57,700 |
|
Total loans held-for-investment |
|
6,060,975 |
|
|
|
5,911,832 |
|
|
|
4,315,031 |
|
Total deposits |
|
5,994,266 |
|
|
|
5,765,062 |
|
|
|
4,946,482 |
|
Total stockholders' equity |
|
799,050 |
|
|
|
774,536 |
|
|
|
515,541 |
|
Period end loan-to-deposit ratio |
|
101.11 |
% |
|
|
102.55 |
% |
|
|
87.23 |
% |
Book value per common share |
$ |
32.06 |
|
|
$ |
31.08 |
|
|
$ |
28.10 |
|
Tangible book value per common share (1) |
$ |
27.72 |
|
|
$ |
26.69 |
|
|
$ |
25.87 |
|
(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. |
Condensed Consolidated Statements of Income (Unaudited):
|
As of and for the quarter ended |
|||||||
($ in thousands, except per share amounts) |
March 31,
|
|
December 31,
|
|
March 31,
|
|||
Total interest income |
$ |
94,903 |
|
$ |
85,165 |
|
$ |
44,661 |
Total interest expense |
|
20,786 |
|
|
11,889 |
|
|
3,376 |
Net interest income |
|
74,117 |
|
|
73,276 |
|
|
41,285 |
Provision for credit losses |
|
3,360 |
|
|
5,600 |
|
|
3,700 |
Net interest income after provision for credit losses |
|
70,757 |
|
|
67,676 |
|
|
37,585 |
Noninterest income: |
|
|
|
|
|
|||
Service charges on deposits |
|
5,015 |
|
|
5,100 |
|
|
3,925 |
Credit and debit card fees |
|
2,981 |
|
|
3,003 |
|
|
2,415 |
Trust and investment advisory fees |
|
1,461 |
|
|
1,398 |
|
|
1,947 |
Mortgage banking income, net |
|
7,429 |
|
|
6,268 |
|
|
14,561 |
Other noninterest income |
|
2,045 |
|
|
2,849 |
|
|
845 |
Total noninterest income |
|
18,931 |
|
|
18,618 |
|
|
23,693 |
Noninterest expense: |
|
|
|
|
|
|||
Salaries and benefits |
|
35,049 |
|
|
32,378 |
|
|
34,225 |
Occupancy and equipment |
|
8,174 |
|
|
7,707 |
|
|
6,833 |
Amortization of intangible assets |
|
1,044 |
|
|
2,018 |
|
|
327 |
Merger related expenses |
|
— |
|
|
— |
|
|
303 |
Other noninterest expenses |
|
11,999 |
|
|
13,340 |
|
|
10,779 |
Total noninterest expense |
|
56,266 |
|
|
55,443 |
|
|
52,467 |
Income before income taxes |
|
33,422 |
|
|
30,851 |
|
|
8,811 |
Provision for income taxes |
|
7,141 |
|
|
6,281 |
|
|
1,142 |
Net income |
$ |
26,281 |
|
$ |
24,570 |
|
$ |
7,669 |
Earnings per share - basic |
$ |
1.05 |
|
$ |
0.99 |
|
$ |
0.42 |
Earnings per share - diluted |
$ |
1.03 |
|
$ |
0.96 |
|
$ |
0.41 |
Condensed Consolidated Balance Sheets as of (Unaudited):
($ in thousands) |
March 31,
|
|
December 31,
|
|
March 31,
|
||||||
Assets |
|
|
|
|
|
||||||
Cash and cash equivalents |
$ |
388,349 |
|
|
$ |
343,526 |
|
|
$ |
487,689 |
|
Securities available-for-sale, at fair value |
|
532,650 |
|
|
|
536,973 |
|
|
|
556,723 |
|
Securities held-to-maturity |
|
38,470 |
|
|
|
38,901 |
|
|
|
16,799 |
|
Loans held-for-sale, at fair value |
|
66,255 |
|
|
|
57,323 |
|
|
|
57,700 |
|
Loans |
|
6,060,975 |
|
|
|
5,911,832 |
|
|
|
4,315,031 |
|
Allowance for credit losses |
|
(74,459 |
) |
|
|
(65,917 |
) |
|
|
(50,509 |
) |
Loans, net |
|
5,986,516 |
|
|
|
5,845,915 |
|
|
|
4,264,522 |
|
Mortgage servicing rights, at fair value |
|
73,424 |
|
|
|
74,097 |
|
|
|
60,481 |
|
Premises and equipment, net |
|
86,430 |
|
|
|
87,079 |
|
|
|
52,198 |
|
Other real estate owned and foreclosed assets, net |
|
6,358 |
|
|
|
6,358 |
|
|
|
5,162 |
|
Goodwill |
|
93,483 |
|
|
|
93,483 |
|
|
|
33,050 |
|
Intangible assets, net |
|
14,762 |
|
|
|
15,806 |
|
|
|
7,923 |
|
All other assets |
|
323,759 |
|
|
|
330,861 |
|
|
|
191,501 |
|
Total assets |
$ |
7,610,456 |
|
|
$ |
7,430,322 |
|
|
$ |
5,733,748 |
|
Liabilities and Stockholders' Equity |
|
|
|
|
|
||||||
Liabilities: |
|
|
|
|
|
||||||
Deposits: |
|
|
|
|
|
||||||
Noninterest-bearing demand deposit accounts |
$ |
1,764,440 |
|
|
$ |
1,820,490 |
|
|
$ |
1,662,980 |
|
Interest-bearing deposit accounts: |
|
|
|
|
|
||||||
Interest-bearing demand accounts |
|
238,658 |
|
|
|
212,357 |
|
|
|
155,388 |
|
Savings accounts and money market accounts |
|
2,705,315 |
|
|
|
2,759,969 |
|
|
|
2,742,393 |
|
NOW accounts |
|
45,192 |
|
|
|
50,224 |
|
|
|
74,106 |
|
Certificate of deposit accounts |
|
1,240,661 |
|
|
|
922,022 |
|
|
|
311,615 |
|
Total deposits |
|
5,994,266 |
|
|
|
5,765,062 |
|
|
|
4,946,482 |
|
Securities sold under agreements to repurchase |
|
31,645 |
|
|
|
36,721 |
|
|
|
69,627 |
|
Federal Home Loan Bank advances |
|
577,285 |
|
|
|
643,885 |
|
|
|
40,000 |
|
Other borrowings |
|
80,373 |
|
|
|
80,235 |
|
|
|
87,799 |
|
Other liabilities |
|
127,837 |
|
|
|
129,883 |
|
|
|
74,299 |
|
Total liabilities |
|
6,811,406 |
|
|
|
6,655,786 |
|
|
|
5,218,207 |
|
Stockholders' equity: |
|
|
|
|
|
||||||
Preferred stock |
|
— |
|
|
|
— |
|
|
|
— |
|
Common stock |
|
2 |
|
|
|
2 |
|
|
|
2 |
|
Additional paid-in capital |
|
461,174 |
|
|
|
460,720 |
|
|
|
262,071 |
|
Treasury stock |
|
— |
|
|
|
— |
|
|
|
(38,148 |
) |
Retained earnings |
|
380,270 |
|
|
|
357,797 |
|
|
|
306,284 |
|
Accumulated other comprehensive loss, net |
|
(42,396 |
) |
|
|
(43,983 |
) |
|
|
(14,668 |
) |
Total stockholders' equity |
|
799,050 |
|
|
|
774,536 |
|
|
|
515,541 |
|
Total liabilities and stockholders' equity |
$ |
7,610,456 |
|
|
$ |
7,430,322 |
|
|
$ |
5,733,748 |
|
Share Data as of and for the periods ended:
|
As of and for the quarter ended |
|||||||
|
March 31,
|
|
December 31,
|
|
March 31,
|
|||
Weighted average common shares outstanding, basic |
|
24,923,259 |
|
|
24,907,643 |
|
|
18,346,288 |
Weighted average common shares outstanding, diluted |
|
25,487,582 |
|
|
25,525,026 |
|
|
18,899,852 |
Period end common shares outstanding |
|
24,924,023 |
|
|
24,920,984 |
|
|
18,346,288 |
Book value per common share |
$ |
32.06 |
|
$ |
31.08 |
|
$ |
28.10 |
Tangible book value per common share (1) |
$ |
27.72 |
|
$ |
26.69 |
|
$ |
25.87 |
Consolidated Capital Ratios as of:
|
March 31,
|
|
December 31,
|
|
March 31,
|
|||
Stockholders' equity to total assets |
10.50 |
% |
|
10.42 |
% |
|
8.99 |
% |
Tangible common stockholders' equity to tangible assets (1) |
9.21 |
% |
|
9.09 |
% |
|
8.34 |
% |
Tangible common stockholders' equity to tangible assets reflecting net unrealized losses on HTM securities, net of tax (1) (2) |
9.16 |
% |
|
9.03 |
% |
|
8.34 |
% |
Tier 1 leverage ratio |
9.86 |
% |
|
9.71 |
% |
|
8.42 |
% |
Common equity tier 1 risk-based capital ratio |
10.11 |
% |
|
9.94 |
% |
|
9.27 |
% |
Tier 1 risk-based capital ratio |
10.11 |
% |
|
9.94 |
% |
|
9.27 |
% |
Total risk-based capital ratio |
12.19 |
% |
|
11.99 |
% |
|
11.74 |
% |
(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 common 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 March 31, 2023 |
|
For the quarter ended December 31, 2022 |
|
For the quarter ended March 31, 2022 |
||||||||||||||||||||||||
(In thousands) |
|
Average
|
|
Interest |
|
Average Yield/Rate |
|
Average Balance |
|
Interest |
|
Average Yield/Rate |
|
Average Balance |
|
Interest |
|
Average Yield/Rate |
||||||||||||
Interest Earning Assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Loans held-for-sale |
|
$ |
50,129 |
|
$ |
654 |
|
|
5.22 |
% |
|
$ |
51,835 |
|
$ |
606 |
|
|
4.68 |
% |
|
$ |
60,895 |
|
$ |
694 |
|
|
4.56 |
% |
Loans held-for-investment (1) |
|
|
5,978,860 |
|
|
87,947 |
|
|
5.88 |
% |
|
|
5,759,436 |
|
|
78,669 |
|
|
5.46 |
% |
|
|
4,123,920 |
|
|
41,164 |
|
|
3.99 |
% |
Investment securities |
|
|
570,682 |
|
|
4,164 |
|
|
2.92 |
% |
|
|
573,592 |
|
|
3,933 |
|
|
2.74 |
% |
|
|
582,333 |
|
|
2,275 |
|
|
1.56 |
% |
Interest-bearing cash and other assets |
|
|
156,262 |
|
|
2,138 |
|
|
5.47 |
% |
|
|
204,964 |
|
|
1,957 |
|
|
3.82 |
% |
|
|
592,478 |
|
|
528 |
|
|
0.36 |
% |
Total earning assets |
|
|
6,755,933 |
|
|
94,903 |
|
|
5.62 |
% |
|
|
6,589,827 |
|
|
85,165 |
|
|
5.17 |
% |
|
|
5,359,626 |
|
|
44,661 |
|
|
3.33 |
% |
Other assets |
|
|
553,961 |
|
|
|
|
|
|
553,870 |
|
|
|
|
|
|
314,043 |
|
|
|
|
|||||||||
Total assets |
|
$ |
7,309,894 |
|
|
|
|
|
$ |
7,143,697 |
|
|
|
|
|
$ |
5,673,669 |
|
|
|
|
|||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Interest-bearing liabilities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Demand and NOW deposits |
|
$ |
227,170 |
|
$ |
1,234 |
|
|
2.17 |
% |
|
$ |
213,491 |
|
$ |
927 |
|
|
1.74 |
% |
|
$ |
223,020 |
|
$ |
124 |
|
|
0.22 |
% |
Savings deposits |
|
|
470,000 |
|
|
445 |
|
|
0.38 |
% |
|
|
492,837 |
|
|
348 |
|
|
0.28 |
% |
|
|
468,713 |
|
|
91 |
|
|
0.08 |
% |
Money market deposits |
|
|
2,296,469 |
|
|
5,068 |
|
|
0.88 |
% |
|
|
2,412,289 |
|
|
3,126 |
|
|
0.52 |
% |
|
|
2,306,638 |
|
|
840 |
|
|
0.15 |
% |
Certificates of deposits |
|
|
1,073,006 |
|
|
7,432 |
|
|
2.77 |
% |
|
|
647,819 |
|
|
1,733 |
|
|
1.07 |
% |
|
|
317,948 |
|
|
519 |
|
|
0.65 |
% |
Total deposits |
|
|
4,066,645 |
|
|
14,179 |
|
|
1.39 |
% |
|
|
3,766,436 |
|
|
6,134 |
|
|
0.65 |
% |
|
|
3,316,319 |
|
|
1,574 |
|
|
0.19 |
% |
Repurchase agreements |
|
|
29,672 |
|
|
30 |
|
|
0.41 |
% |
|
|
38,795 |
|
|
45 |
|
|
0.46 |
% |
|
|
71,425 |
|
|
8 |
|
|
0.04 |
% |
Total deposits and repurchase agreements |
|
|
4,096,317 |
|
|
14,209 |
|
|
1.39 |
% |
|
|
3,805,231 |
|
|
6,179 |
|
|
0.65 |
% |
|
|
3,387,744 |
|
|
1,582 |
|
|
0.19 |
% |
FHLB borrowings |
|
|
454,081 |
|
|
5,317 |
|
|
4.68 |
% |
|
|
471,880 |
|
|
4,477 |
|
|
3.80 |
% |
|
|
40,229 |
|
|
148 |
|
|
1.48 |
% |
Other long-term borrowings |
|
|
80,300 |
|
|
1,260 |
|
|
6.28 |
% |
|
|
80,162 |
|
|
1,233 |
|
|
6.15 |
% |
|
|
86,191 |
|
|
1,646 |
|
|
7.63 |
% |
Total interest-bearing liabilities |
|
|
4,630,698 |
|
|
20,786 |
|
|
1.80 |
% |
|
|
4,357,273 |
|
|
11,889 |
|
|
1.09 |
% |
|
|
3,514,164 |
|
|
3,376 |
|
|
0.38 |
% |
Noninterest-bearing deposits |
|
|
1,768,381 |
|
|
|
|
|
|
1,923,401 |
|
|
|
|
|
|
1,566,088 |
|
|
|
|
|||||||||
Other liabilities |
|
|
124,543 |
|
|
|
|
|
|
100,671 |
|
|
|
|
|
|
68,999 |
|
|
|
|
|||||||||
Stockholders' equity |
|
|
786,272 |
|
|
|
|
|
|
762,352 |
|
|
|
|
|
|
524,418 |
|
|
|
|
|||||||||
Total liabilities and stockholders' equity |
|
$ |
7,309,894 |
|
|
|
|
|
$ |
7,143,697 |
|
|
|
|
|
$ |
5,673,669 |
|
|
|
|
|||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Net interest income |
|
|
|
$ |
74,117 |
|
|
|
|
|
|
$ |
73,276 |
|
|
|
|
|
|
$ |
41,285 |
|
|
|
||||||
Net interest spread |
|
|
|
|
3.82 |
% |
|
|
|
|
|
|
4.08 |
% |
|
|
|
|
|
|
2.95 |
% |
|
|
||||||
Net interest margin |
|
|
|
|
4.39 |
% |
|
|
|
|
|
|
4.45 |
% |
|
|
|
|
|
|
3.08 |
% |
|
|
||||||
Net interest margin (on FTE basis) (2) |
|
|
|
|
4.46 |
% |
|
|
|
|
|
|
4.52 |
% |
|
|
|
|
|
|
3.17 |
% |
|
|
||||||
(1) Includes nonaccrual loans. |
||||||||||||||||||||||||||||||
(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:
($ in thousands) |
March 31,
|
|
December 31,
|
|
March 31, 2023 vs December 31, 2022 % change |
|
March 31,
|
|
March 31, 2023 vs March 31, 2022 % change |
|||||
Consumer |
|
|
|
|
|
|
|
|
|
|||||
Noninterest bearing deposit accounts |
$ |
399,008 |
|
$ |
416,709 |
|
(4.25 |
) % |
|
$ |
361,475 |
|
10.38 |
% |
Interest-bearing deposit accounts: |
|
|
|
|
|
|
|
|
|
|||||
Demand and NOW deposits |
|
25,284 |
|
|
25,940 |
|
(2.53 |
) % |
|
|
28,083 |
|
(9.97 |
) % |
Savings deposits |
|
407,173 |
|
|
418,101 |
|
(2.61 |
) % |
|
|
421,397 |
|
(3.38 |
) % |
Money market deposits |
|
1,296,099 |
|
|
1,375,671 |
|
(5.78 |
) % |
|
|
1,463,495 |
|
(11.44 |
) % |
Certificates of deposits |
|
759,726 |
|
|
662,831 |
|
14.62 |
% |
|
|
291,105 |
|
160.98 |
% |
Total interest-bearing deposit accounts |
|
2,488,282 |
|
|
2,482,543 |
|
0.23 |
% |
|
|
2,204,080 |
|
12.89 |
% |
Total consumer deposits |
$ |
2,887,290 |
|
$ |
2,899,252 |
|
(0.41 |
) % |
|
$ |
2,565,555 |
|
12.54 |
% |
Business |
|
|
|
|
|
|
|
|
|
|||||
Noninterest bearing deposit accounts |
$ |
1,365,432 |
|
$ |
1,403,781 |
|
(2.73 |
) % |
|
$ |
1,301,505 |
|
4.91 |
% |
Interest-bearing deposit accounts: |
|
|
|
|
|
|
|
|
|
|||||
Demand and NOW deposits |
|
258,566 |
|
|
236,641 |
|
9.27 |
% |
|
|
201,411 |
|
28.38 |
% |
Savings deposits |
|
59,308 |
|
|
58,818 |
|
0.83 |
% |
|
|
54,438 |
|
8.95 |
% |
Money market deposits |
|
942,735 |
|
|
907,379 |
|
3.90 |
% |
|
|
803,063 |
|
17.39 |
% |
Certificates of deposits |
|
480,935 |
|
|
259,191 |
|
85.55 |
% |
|
|
20,510 |
|
2244.88 |
% |
Total interest-bearing deposit accounts |
|
1,741,544 |
|
|
1,462,029 |
|
19.12 |
% |
|
|
1,079,422 |
|
61.34 |
% |
Total business customer deposits |
$ |
3,106,976 |
|
$ |
2,865,810 |
|
8.42 |
% |
|
$ |
2,380,927 |
|
30.49 |
% |
Total deposits |
$ |
5,994,266 |
|
$ |
5,765,062 |
|
3.98 |
% |
|
$ |
4,946,482 |
|
21.18 |
% |
Balance Sheet Ratios:
|
March 31,
|
|
December 31,
|
|
March 31,
|
|||
Cash to total assets (1) |
4.6 |
% |
|
4.1 |
% |
|
7.10 |
% |
Loan to deposit ratio |
101.11 |
% |
|
102.55 |
% |
|
87.23 |
% |
Uninsured and uncollateralized deposits to total deposits (2) |
25.5 |
% |
|
41.6 |
% |
|
51.3 |
% |
Wholesale borrowings to total liabilities (3) |
8.48 |
% |
|
9.67 |
% |
|
0.77 |
% |
Tangible common stockholders' equity to tangible assets (4) |
9.21 |
% |
|
9.09 |
% |
|
8.34 |
% |
Tangible common stockholders' equity to tangible assets, reflecting net unrealized losses on HTM securities, net of tax (4) (5) |
9.16 |
% |
|
9.03 |
% |
|
8.34 |
% |
|
||||||||
(1) Cash consists of cash and amounts due from banks and interest-bearing deposits in other financial institutions. |
||||||||
(2) Uninsured and uncollateralized deposits are estimated. |
||||||||
(3) Wholesale borrowings consists of FHLB overnight borrowings and term advances. |
||||||||
(4) 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. |
||||||||
(5) Tangible common stockholders’ equity and tangible assets have been adjusted to reflect net unrealized losses on held-to-maturity securities, net of tax. |
Loan Portfolio:
($ in thousands) |
March 31, 2023 |
|
December 31, 2022 |
|
March 31, 2023 vs December 31, 2022 % change |
|
March 31, 2022 |
|
March 31, 2023 vs March 31, 2022 % change |
|||||
Commercial and industrial |
$ |
2,418,771 |
|
$ |
2,310,929 |
|
4.7 |
% |
|
$ |
1,819,705 |
|
32.9 |
% |
Commercial real estate: |
|
|
|
|
|
|
|
|
|
|||||
Non-owner occupied |
|
709,977 |
|
|
779,546 |
|
(8.9 |
) % |
|
|
624,729 |
|
13.6 |
% |
Owner occupied |
|
659,999 |
|
|
636,272 |
|
3.7 |
% |
|
|
445,654 |
|
48.1 |
% |
Construction and land |
|
320,193 |
|
|
327,817 |
|
(2.3 |
) % |
|
|
144,122 |
|
122.2 |
% |
Multifamily |
|
103,767 |
|
|
102,068 |
|
1.7 |
% |
|
|
66,112 |
|
57.0 |
% |
Total commercial real estate |
|
1,793,936 |
|
|
1,845,703 |
|
(2.8 |
) % |
|
|
1,280,617 |
|
40.1 |
% |
Residential real estate |
|
1,046,047 |
|
|
1,003,931 |
|
4.2 |
% |
|
|
501,230 |
|
108.7 |
% |
Public Finance |
|
597,850 |
|
|
590,284 |
|
1.3 |
% |
|
|
624,187 |
|
(4.2 |
) % |
Consumer |
|
40,806 |
|
|
42,588 |
|
(4.2 |
) % |
|
|
17,981 |
|
126.9 |
% |
Other |
|
163,565 |
|
|
118,397 |
|
38.1 |
% |
|
|
71,311 |
|
129.4 |
% |
Total loans, net of deferred costs, fees, premiums, and discounts |
$ |
6,060,975 |
|
$ |
5,911,832 |
|
2.5 |
% |
|
$ |
4,315,031 |
|
40.5 |
% |
Asset Quality:
|
As of and for the quarter ended |
||||||||||
($ in thousands) |
March 31,
|
|
December 31,
|
|
March 31,
|
||||||
Net charge-offs (recoveries) |
$ |
54 |
|
|
$ |
(639 |
) |
|
$ |
738 |
|
Allowance for credit losses |
$ |
74,459 |
|
|
$ |
65,917 |
|
|
$ |
50,509 |
|
Nonperforming loans, including nonaccrual loans, and accrual loans greater than 90 days past due (1) |
$ |
32,833 |
|
|
$ |
29,067 |
|
|
$ |
25,365 |
|
Nonperforming assets |
$ |
39,191 |
|
|
$ |
35,425 |
|
|
$ |
30,527 |
|
Ratio of net charge-offs (recoveries) to average loans outstanding |
|
— |
% |
|
|
(0.04 |
) % |
|
|
0.07 |
% |
Allowance for credit losses to total loans outstanding |
|
1.23 |
% |
|
|
1.12 |
% |
|
|
1.17 |
% |
Allowance for credit losses to total nonperforming loans |
|
226.78 |
% |
|
|
226.78 |
% |
|
|
199.13 |
% |
Nonperforming loans to total loans |
|
0.54 |
% |
|
|
0.49 |
% |
|
|
0.59 |
% |
Nonperforming assets to total assets |
|
0.51 |
% |
|
|
0.48 |
% |
|
|
0.53 |
% |
(1) On January 1, 2023, we adopted ASU 2022-02, whereby we no longer recognize or account for TDRs. The loans previously classified as accrual TDRs are no longer considered nonperforming. We have adjusted prior periods to reflect this change in accounting. |
Non-GAAP Financial Measures and Reconciliations:
|
As of and for the quarter ended |
||||||||||
($ in thousands, except share and per share amounts) |
March 31,
|
|
December 31,
|
|
March 31,
|
||||||
Tangible common stockholders’ equity: |
|||||||||||
Total common stockholders' equity (GAAP) |
$ |
799,050 |
|
|
$ |
774,536 |
|
|
$ |
515,541 |
|
Less: Goodwill and other intangible assets: |
|
|
|
|
|
||||||
Goodwill |
|
(93,483 |
) |
|
|
(93,483 |
) |
|
|
(33,050 |
) |
Other intangible assets |
|
(14,762 |
) |
|
|
(15,806 |
) |
|
|
(7,923 |
) |
Total tangible common stockholders' equity (non-GAAP) (1) |
$ |
690,805 |
|
|
$ |
665,247 |
|
|
$ |
474,568 |
|
Tangible assets: |
|||||||||||
Total assets (GAAP) |
$ |
7,610,456 |
|
|
$ |
7,430,322 |
|
|
$ |
5,733,748 |
|
Less: Goodwill and other intangible assets: |
|
|
|
|
|
||||||
Goodwill |
|
(93,483 |
) |
|
|
(93,483 |
) |
|
|
(33,050 |
) |
Other intangible assets |
|
(14,762 |
) |
|
|
(15,806 |
) |
|
|
(7,923 |
) |
Total tangible assets (non-GAAP) |
$ |
7,502,211 |
|
|
$ |
7,321,033 |
|
|
$ |
5,692,775 |
|
Tangible common stockholders’ equity to tangible assets: |
|||||||||||
Common stockholders' equity to total assets (GAAP) |
|
10.50 |
% |
|
|
10.42 |
% |
|
|
8.99 |
% |
Less: Impact of goodwill and other intangible assets |
|
(1.29 |
) % |
|
|
(1.33 |
) % |
|
|
(0.65 |
) % |
Tangible common stockholders' equity to tangible assets (non-GAAP) (1) |
|
9.21 |
% |
|
|
9.09 |
% |
|
|
8.34 |
% |
Tangible common stockholders’ equity to tangible assets, reflecting net unrealized losses on HTM securities, net of tax: |
|||||||||||
Total tangible common stockholders' equity (non-GAAP) |
$ |
690,805 |
|
|
$ |
665,247 |
|
|
$ |
474,568 |
|
Less: Net unrealized losses on HTM securities, net of tax |
|
(3,754 |
) |
|
|
(4,295 |
) |
|
|
(79 |
) |
Total tangible common stockholders’ equity less net unrealized losses on HTM securities, net of tax (non-GAAP) |
$ |
687,051 |
|
|
$ |
660,952 |
|
|
$ |
474,489 |
|
Total tangible assets (non-GAAP) |
$ |
7,502,211 |
|
|
$ |
7,321,033 |
|
|
$ |
5,692,775 |
|
Less: Net unrealized losses on HTM securities, net of tax |
|
(3,754 |
) |
|
|
(4,295 |
) |
|
|
(79 |
) |
Total tangible assets less net unrealized losses on HTM securities, net of tax (non-GAAP) |
$ |
7,498,457 |
|
|
$ |
7,316,738 |
|
|
$ |
5,692,696 |
|
Tangible common stockholders’ equity to tangible assets (non-GAAP) |
|
9.21 |
% |
|
|
9.09 |
% |
|
|
8.34 |
% |
Less: Net unrealized losses on HTM securities, net of tax |
|
0.05 |
% |
|
|
0.06 |
% |
|
|
— |
% |
Tangible common stockholders’ equity to tangible assets reflecting net unrealized losses on HTM securities, net of tax (non-GAAP) |
|
9.16 |
% |
|
|
9.03 |
% |
|
|
8.34 |
% |
Tangible book value per common share: |
|||||||||||
Stockholders' equity (GAAP) |
$ |
799,050 |
|
|
$ |
774,536 |
|
|
$ |
515,541 |
|
Tangible stockholders' equity (non-GAAP) (1) |
$ |
690,805 |
|
|
$ |
665,247 |
|
|
$ |
474,568 |
|
Total common shares outstanding |
|
24,924,023 |
|
|
|
24,920,984 |
|
|
|
18,346,288 |
|
Book value per common share (GAAP) |
$ |
32.06 |
|
|
$ |
31.08 |
|
|
$ |
28.10 |
|
Tangible book value per common share (non-GAAP) |
$ |
27.72 |
|
|
$ |
26.69 |
|
|
$ |
25.87 |
|
Net income excluding merger costs: |
|||||||||||
Net income (GAAP) |
$ |
26,281 |
|
|
$ |
24,570 |
|
|
$ |
7,669 |
|
Add: Merger costs |
|
|
|
|
|
||||||
Merger related expenses |
|
— |
|
|
|
— |
|
|
|
303 |
|
Income tax effect on merger related expenses |
|
— |
|
|
|
— |
|
|
|
(50 |
) |
Total merger costs |
|
— |
|
|
|
— |
|
|
|
253 |
|
Net income excluding merger costs (non-GAAP) |
$ |
26,281 |
|
|
$ |
24,570 |
|
|
$ |
7,922 |
|
Return on average total assets excluding merger costs: |
|||||||||||
Return on average total assets (ROAA) (GAAP) |
|
1.44 |
% |
|
|
1.38 |
% |
|
|
0.54 |
% |
Add: Impact of merger costs, net of tax |
|
— |
% |
|
|
— |
% |
|
|
0.02 |
% |
ROAA excluding merger costs (non-GAAP) |
|
1.44 |
% |
|
|
1.38 |
% |
|
|
0.56 |
% |
(1) For all periods presented tangible stockholders’ equity is the same as tangible common stockholders’ equity. |
|||||||||||
Return on average stockholders’ equity excluding merger costs: |
|||||||||||
Return on average stockholders' equity (ROAE) (GAAP) |
|
13.37 |
% |
|
|
12.89 |
% |
|
|
5.85 |
% |
Add: Impact of merger costs, net of tax |
|
— |
% |
|
|
— |
% |
|
|
0.19 |
% |
ROAE excluding merger costs (non-GAAP) |
|
13.37 |
% |
|
|
12.89 |
% |
|
|
6.04 |
% |
Efficiency ratio excluding merger related expenses: |
|||||||||||
Efficiency ratio (GAAP) |
|
60.47 |
% |
|
|
60.33 |
% |
|
|
80.75 |
% |
Less: Impact of merger related expenses |
|
— |
% |
|
|
— |
% |
|
|
0.47 |
% |
Efficiency ratio excluding merger related expenses (non-GAAP) |
|
60.47 |
% |
|
|
60.33 |
% |
|
|
80.28 |
% |
Diluted earnings per share excluding merger costs: |
|||||||||||
Diluted earnings per share (GAAP) |
$ |
1.03 |
|
|
$ |
0.96 |
|
|
$ |
0.41 |
|
Add: Impact of merger costs, net of tax |
|
— |
|
|
|
— |
|
|
|
0.01 |
|
Diluted earnings per share excluding merger costs (non-GAAP) |
$ |
1.03 |
|
|
$ |
0.96 |
|
|
$ |
0.42 |
|
Fully tax equivalent (“FTE”) net interest income and net interest margin on FTE basis: |
|||||||||||
Net interest income (GAAP) |
$ |
74,117 |
|
|
$ |
73,276 |
|
|
$ |
41,285 |
|
Gross income effect of tax exempt income |
|
1,242 |
|
|
|
1,218 |
|
|
|
1,321 |
|
FTE net interest income (non-GAAP) |
$ |
75,359 |
|
|
$ |
74,494 |
|
|
$ |
42,606 |
|
Average earning assets |
$ |
6,755,933 |
|
|
$ |
6,589,827 |
|
|
$ |
5,359,626 |
|
Net interest margin |
|
4.39 |
% |
|
|
4.45 |
% |
|
|
3.08 |
% |
Net interest margin on FTE basis (non-GAAP) |
|
4.46 |
% |
|
|
4.52 |
% |
|
|
3.17 |
% |
View source version on businesswire.com: https://www.businesswire.com/news/home/20230428005390/en/
Investor Relations:
Kelly C. Rackley
Corporate Secretary & Stockholder Relations Manager
303.962.0150 | stockholder.relations@sunflowerbank.com
Media Relations:
Jeanne Lipson
Vice President, Marketing
915.881.6785
Source: FirstSun Capital Bancorp