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…
Earnings analysis · 10-Q
FSUN earnings analysis
Filed August 10, 2026 · Our reading of the company's report
The latest report
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.…
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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.
Where revenue came from
The business segments reported by the company.
Shares of the segments disclosed in this filing, largest first.
Reported figures
- Earnings per share
- $-0.49
What stood out
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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.
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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%.
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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.
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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.
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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.
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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.
What to watch
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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.
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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.
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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%.
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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.
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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.
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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.
Management's outlook
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.
Earlier filings 1
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.