FSUN earnings analysis
What we found in FSUN's 10-Q: the parts that mattered, the offsets in the same document, and what the company said about what comes next.
Our reading of the filing · Free to read, no account needed
FirstSun’s First Foundation acquisition sharply increased scale and lifted second-quarter total revenue to $184.143 million, but GAAP results deteriorated to a $22.850 million net loss and diluted EPS of negative $0.49. Credit costs were the primary operational headwind, with a $40.4 million provision, $42.404 million of net charge-offs and materially higher criticized and nonperforming loans. Mortgage Operations improved and the balance-sheet repositioning reduced deposits and borrowings, but net interest margin compressed to 3.58% and the quarter included $57.559 million of merger-related expenses. The filing provides no numeric forward guidance and reports no material changes to prior risk factors.
The parts that mattered.
Pulled out of the filing itself, with the figures the company reported.
- Acquisition drove substantial revenue growth
- Total revenue, defined as net interest income plus noninterest income, was $184.143 million in the second quarter of 2026 versus $105.572 million in the second quarter of 2025, a $78.571 million or 74.4% increase, primarily reflecting the First Foundation acquisition.
- Net interest income surged, margin compressed
- Net interest income rose 82.4% to $143.2 million from $78.5 million, supported by $27.2 million of purchase-accounting accretion income and larger acquired asset balances. However, net interest margin declined 49 basis points to 3.58% from 4.07%.
- Mortgage performance improved
- Mortgage Operations pretax income increased $1.0 million to $5.5 million, while mortgage banking services revenue rose $2.7 million to $16.6 million. Second-quarter loan originations for sale increased to $464.7 million from $380.6 million.
- First Foundation materially expanded scale
- The First Foundation transaction added $11.2 billion of assets, including $6.0 billion of net loans, and $10.5 billion of liabilities, including $8.8 billion of deposits. Total assets reached $15.718 billion and total deposits reached $13.418 billion at June 30, 2026.
- Repositioning reduced funding pressure
- The balance-sheet repositioning liquidated $1.2 billion of cash, $1.4 billion of securities and $1.3 billion of loans, reducing deposits by $2.5 billion and borrowings by $1.4 billion. Loan-to-customer-deposit ratio improved to 86.2% from 93.9% at December 31, 2025.
- New $150 million repurchase authorization
- The board authorized a common-stock repurchase program of up to $150.0 million on July 24, 2026, running through June 30, 2027, although no repurchases were made under an authorized plan during the quarter.
And the other side of it.
The offsets in the same document — the things a summary that only listed the good news would have left out.
- Acquisition costs drove GAAP loss
- GAAP net loss was $22.850 million, or diluted loss per share of $0.49, versus net income of $26.386 million and diluted EPS of $0.93 in the prior-year quarter. Merger-related expenses were $57.559 million, and adjusted diluted EPS was $0.45 versus $0.94.
- C&I credit losses escalated
- Provision for credit losses increased to $40.4 million from $4.5 million. Two C&I loans generated approximately $22.0 million and $12.9 million of charge-offs, while net charge-offs rose to $42.404 million from $13.547 million.
- Credit-quality metrics deteriorated
- Criticized loans increased to $895.2 million, or 7.7% of loans, from $311.7 million, or 4.7%, at December 31, 2025; nonperforming loans rose to $190.115 million, or 1.64% of loans, from $60.771 million, or 0.91%.
- Margin and accretion sustainability risk
- Net interest margin fell to 3.58% from 4.07%, with earning-asset yield down 32 basis points. The company also reported $27.2 million of second-quarter purchase-accounting accretion income, creating a potential source of earnings normalization risk.
- Liquidity and uninsured-deposit exposure
- Liquid assets were $979.1 million, or 6.2% of total assets, while approximately $1.8 billion, or 92% of the $1.9 billion securities portfolio, was pledged. Uninsured deposits were approximately $4.2 billion, or 31.6% of deposits.
- No formal risk-factor changes; acquisition estimates remain provisional
- The filing states that there were no material changes to the risk factors disclosed in the 2025 Annual Report. Separately, preliminary acquisition fair values remain subject to adjustment for up to one year after April 1, 2026; recorded intangibles were $90.2 million and preliminary goodwill was $9.1 million.
What they reported.
What the company itself reported, taken out of the document.
- Earnings per share
- $-0.49
- Segment
- Banking: second-quarter 2026 loss before income taxes of $10.5 million versus income of $30.9 million in second-quarter 2025; net interest income increased to $137.2 million from $71.2 million.
- Segment
- Private Wealth Banking: second-quarter 2026 loss before income taxes of $1.8 million versus $0.2 million in second-quarter 2025; trust and investment advisory revenue increased to $9.5 million from $1.5 million.
- Segment
- Mortgage Operations: second-quarter 2026 income before income taxes of $5.5 million versus $4.6 million in second-quarter 2025; mortgage banking services revenue increased to $16.6 million from $13.9 million.
What they said about what is next.
The 10-Q provides no quantitative revenue or EPS guidance and does not indicate a change to prior outlook. Management states it believes FirstSun and the Bank can obtain adequate liquidity to meet short-term and long-term requirements; FirstSun had $52.8 million of cash and cash equivalents and $213.1 million of debt outstanding at June 30, 2026.
The filing reads worse than the one before it.
What came before.
- 10-Q · May 8, 2026
- FirstSun reported Q1 2026 results with revenue of $109.95 million, exceeding estimates of $108.43 million, but adjusted EPS of $0.84 fell short of the expected $0.87. Strong loan growth of 16.2% supported the revenue…
This is our reading of a public filing, not the filing. Read the original on SEC.gov · Educational only. Nothing here is investment advice.
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