FirstSun Capital Bancorp Reports Third Quarter 2024 Results

DENVER, October 28, 2024--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.

Overview of Non-GAAP Financial Measures

FirstSun Capital Bancorp's financial performance for the third quarter of 2024 is presented using various non-GAAP measures to provide a clearer understanding of the company's performance. Non-GAAP financial measures are used by many companies to supplement their GAAP financial reporting and offer investors additional insights into the underlying operational performance of a business.

Net Interest Income and Non-GAAP Performance

Net interest income is a key financial measure for banks and financial institutions, representing the difference between the interest earned on assets such as loans and investments and the interest paid on deposits and other liabilities. For FirstSun Capital Bancorp, net interest income is a critical component of its overall financial performance.

Impact of Non-GAAP Measures on Net Income

Net income is a fundamental metric that indicates the profitability of a company after accounting for all expenses, taxes, and other factors. In the case of FirstSun Capital Bancorp, the use of non-GAAP measures helps in assessing the company's net income in a more comprehensive manner, considering the impact of various one-time or non-recurring items on the bottom line.

Non-GAAP Performance Measures and Financial Measures

Non-GAAP performance measures are specific metrics used by companies to evaluate their operational performance outside of the traditional GAAP framework. For FirstSun Capital Bancorp, these measures provide a more nuanced view of the company's financial health and performance, allowing investors to gain a deeper understanding of its underlying strengths and challenges.

Understanding Average Total Assets and Total Loans

Average total assets and total loans are essential components of a bank's balance sheet, reflecting the size and composition of its asset base. These financial measures play a crucial role in assessing a bank's lending activities, asset quality, and overall financial stability. For FirstSun Capital Bancorp, average total assets and total loans are key indicators of its business operations and growth trajectory.

Analysis of Third Quarter 2024 Results

In the third quarter of 2024, FirstSun Capital Bancorp reported a net income of $22.4 million, compared to $25.2 million in the same period last year. The decline in earnings can be partly attributed to $1.2 million of merger costs, indicating a one-time expense that impacted the company's bottom line. Earnings per diluted share also decreased from $1.00 to $0.79 year-over-year, reflecting the impact of the merger costs on the company's profitability.

Impact of Merger Costs on Earnings

The $1.2 million merger costs incurred by FirstSun Capital Bancorp in the third quarter of 2024 had a notable impact on the company's earnings. After adjusting for these costs, the company's net income would have been higher, signaling that the underlying operational performance of FirstSun might have been stronger than indicated by the reported figures. By accounting for such non-GAAP items, investors can gain a clearer picture of the company's true financial performance.

Future Outlook and Potential Growth Strategies

Looking ahead, FirstSun Capital Bancorp could focus on implementing growth strategies to enhance its profitability and shareholder value. By leveraging its core strengths in net interest income generation and loan portfolio management, the company may explore opportunities to expand its market presence, diversify its revenue streams, and optimize its operational efficiency. With a keen eye on managing merger-related costs and improving non-GAAP financial performance, FirstSun could position itself for sustained growth and success in the dynamic banking industry.

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