Firstsun Capital Bancorp (FSUN)

Price$40.92Cached quoteAs of 2026-09-05 05:30 UTC

AI: Fair-priced

Price checkThe valuation looks balanced because cheap future earnings still depend on an unproven merger payoff.

At the observed quote, the shares trade at about 1.14 times tangible book—net assets excluding goodwill and other intangibles—using June’s $35.16 per share. They also trade near stated book value of $39.29. The price is only about 8.4 times the two-analyst 2027 earnings estimate of $4.80, but roughly 22 times second-quarter adjusted earnings annualized. That gap makes the apparent bargain depend heavily on integration gains, supporting a fair-priced verdict.

Big pictureThe old bank produced rising profits, but the merged bank has not proved durable earnings yet.

Before the acquisition, revenue rose from $284.3 million in 2020 to $419.3 million in 2025, while net income increased from $47.6 million to $97.9 million. Operating cash flow was positive throughout 2021-2025 and reached $111.5 million in 2025, against $7.5 million of capital spending. However, cash-flow measures are less revealing for banks because lending and deposit movements dominate them. The merged company then reported a $22.9 million second-quarter loss, although adjusted profit excluding merger costs was $21.0 million.

Business strengthCapital and funding look sound, while acquired and legacy problem loans deserve close attention.

June deposits covered loans comfortably, with an 86.2% loan-to-deposit ratio, while the common equity Tier 1 ratio—a measure of core loss-absorbing capital—was 11.95%, above management’s 8% operating threshold. About 68% of deposits were federally insured, and immediate borrowing availability was $6.7 billion. Conversely, nonperforming loans reached 1.64% of loans versus 0.91% at 2025 year-end, while criticized loans, meaning credits receiving extra scrutiny, reached 7.7%. Mortgage and wealth fees diversify revenue, but mortgage income remains sensitive to housing activity and interest rates.

What could change the storySuccessful integration can unlock value, while fresh credit surprises would quickly erase that upside.

The bull case requires the lending margin—the difference between asset yields and funding costs—to approach management’s high-3.80% expectation, expenses to fall toward the high-50% to low-60% efficiency range, and credit losses to normalize. The share count jumped about 68% after the stock-funded merger, from 27.9 million to 46.8 million, so per-share improvement matters more than total growth. The planned $150 million buyback could offset roughly 8% of shares at similar prices, but it is discretionary. Repeated large loan losses would instead consume capital and undermine the forecast earnings multiple.

AI: News

Commercial loan losses surfaceTwo troubled business loans exposed underwriting concerns and sharply increased expected credit losses.

On July 9, FirstSun warned that second-quarter net charge-offs—loans removed as uncollectible—would total roughly $42 million to $43 million. A materials distributor allegedly misrepresented collateral and financial information, causing an approximately $22 million charge-off; a weakening technology borrower caused another $12.9 million loss. Shares closed 7.5% lower on July 10, and Bloomberg tied the decline to this disclosure. The losses raise a company-specific question about controls around larger commercial borrowers.

Merger quarter resets expectationsLarge merger costs caused a reported loss, but adjusted profit and planned buybacks reassured investors.

FirstSun reported a $22.9 million second-quarter loss on July 27, including $57.6 million of merger-related expenses. Adjusted profit, which excluded those expenses but retained credit costs, was $21.0 million, or $0.45 per diluted share. Net interest income reached $143.2 million, and management said about 65% of planned cost savings had been achieved. The board also authorized a $150 million buyback through June 2027. Shares rose 13% the next day, although the timing alone cannot isolate which disclosure drove the move.

Acquired loan book downsizedFirstSun sold acquired loans to reduce property exposure and repay expensive funding after the merger.

The bank sold approximately $890 million of performing multifamily loans on June 4 and another $336 million of performing municipal loans on June 25. Proceeds were intended to reduce costly deposits inherited from First Foundation. Across the second quarter, FirstSun repositioned about $3.9 billion each of assets and funding, lowering its wholesale-funding ratio to 6.8%. This reduced concentration and interest-cost risk, but also removed earning assets. Sale pricing was not disclosed, leaving the precise economic benefit uncertain.

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Revenue

2019

2020

2021

2022

2023

2024

2025

Net income

2019

2020

2021

2022

2023

2024

2025

Free cash flow

2019

2020

2021

2022

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2025

Total cash / debt

CashTotal debt

2019

2020

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2025

Financial statements

	2025	2024	2023	2022	2021	2020	2019
Revenue	$419.3M	$386.7M	$372.5M	$331.2M	$279.5M	$284.3M	$198.2M
Operating expenses	$271.8M	$264.0M	$222.8M	$239.1M	$224.6M	$204.1M	$170.2M
Net income	$97.9M	$75.6M	$103.5M	$59.2M	$43.2M	$47.6M	$20.5M
Net profit margin	23.36%	19.56%	27.79%	17.87%	15.44%	16.74%	10.35%
Basic EPSper basic share	$3.52	$2.76	$4.15	$2.55	$2.36	$2.60	$1.05
Diluted EPSper diluted share	$3.47	$2.69	$4.08	$2.48	$2.30	$2.58	$1.03

Review official source filings ↗

Owners

Reported shareholders

Reference date Jun 30, 2026

Reported holdings Number of shares

View holders

Top 20 reported holders of FSUN
Holder	Shares held
JLL/FCH Holdings I, LLC	3.5M
Casciato Chris Cesare	1.44M
Lightyear Fund III, L.P.	1.44M
MACKOVAK BENJAMIN	1.16M
ARNOLD NEAL E	329.75K
Cafera Robert A	148.62K
SHAFER THOMAS C	87.52K
Frazier Laura J	16.51K
Norris Jennifer	15.09K
ELVING BEVERLY O	9.74K
Levy David W	9.21K
Fleshood John	5.9K
CARTER MOLLIE H	5.17K
Parker C. Allen	4.24K
Edelson Sam	4.24K
MURPHY PETER E	3.65K
Cohn Spencer	3.6K
Larkins Paul A	3.4K
Hammond Kevin T.	30
Enden Henchy R	30

Bars compare reported share counts. A matching total for this share class and reporting period is unavailable, so percentages are not shown.

Source: SEC Form 4 ↗Updated Sep 29, 2026 · Quarterly data

Insider buys & sells

Jul 1, 2024–Jun 30, 2026

Buys6$38.13M disclosed value

Sells (SEC code S)1$38.00M disclosed value

Transaction	Insider	Type	Shares	Price	Value	Owned after
Mar 16, 2026Form 4	MURPHY PETER EDirector	BuyCommon Stock, $0.0001 par value · indirect	1.5K	$35.28	$52.9K	1.5K
May 7, 2025Form 4	Fleshood JohnDirector	BuyCommon Stock, $0.0001 par value	1.0K	$35.50	$35.5K	2.0K
May 7, 2025Form 4	Fleshood JohnDirector	BuyCommon Stock, $0.0001 par value	1.0K	$35.25	$35.3K	1.1K
Mar 12, 2025Form 4	CARTER MOLLIE HExecutive Chair	BuyCommon Stock, $0.0001 par value · indirect	284.4K	$37.06	$10.54M	353.4K
Mar 12, 2025Form 4	CARTER MOLLIE HExecutive Chair	BuyCommon Stock, $0.0001 par value · indirect	312.6K	$37.06	$11.59M	509.1K