FirstSun Capital (FSUN) investor relations material

Executive summary

• Q3 net income was $38.4M, or $0.82 per diluted share; adjusted net income was $48.2M, or $1.03 per diluted share.

• NIM expanded 24 bps QoQ to 3.82%, supported by higher loan yields and lower funding costs; First Foundation’s core system conversion was completed in late September.

• Priorities include disciplined organic growth, deeper client relationships, core deposits, fee income and integration synergies.

Financial highlights

• Q3 net interest income was $140.3M, noninterest income $39.4M, provision for credit losses $4.4M and noninterest expense $126.6M.

• Adjusted PPNR, excluding merger-related expenses, was $66.4M, or $1.42 per share; adjusted EPS was $1.03.

• Adjusted noninterest expense was $113.3M, down ~$800,000 QoQ; salaries and benefits fell ~$5.4M, partly offset by $4.5M higher other expenses, mainly loan collection costs.

• Service fee revenue was $39.4M, down 4% QoQ and 21.9% of total revenue; mortgage weakness was partly offset by growth in other fee businesses.

• YTD total revenue was $473.8M, up 53.3% YoY; adjusted net income was $92.9M and adjusted diluted EPS was $2.27.

Outlook and guidance

• Q4 guidance: mid-single-digit loan and deposit growth excluding broker balances, NIM in the mid-3.80s, high-single-digit investment growth and a low-60s efficiency ratio.

• NIM is expected to improve into Q1 2027, reaching the high-3.80s; further expense declines and modest efficiency improvement are expected into 2027.

• Most remaining cost synergies are expected in Q4; savings are projected to slightly exceed the original $68.8M target, with further savings in Q1 2027.

• 2027 loan and deposit growth is expected in the mid-single digits; management cited stronger pipelines and confidence in target performance.

• Outlook assumes one 25 bps Fed rate increase by year-end; estimated pretax purchase-accounting accretion is $20M-$25M in Q4 2026 and $85M-$90M in 2027.