FirstSun Capital Bancorp (FSUN) Q3 2026 Earnings Call: NIM Reaches 3.82%
Source Tradingkey
Key Takeaways
- Adjusted net income was $48.2 million, or $1.03 per diluted share. Adjusted return on average assets was 1.23%.
- Net interest margin expanded 24 basis points quarter over quarter to 3.82%, supported by higher loan yields, lower-cost funding and the sale of lower-yielding acquired loans.
- Service fee revenue totaled approximately $39.4 million, down about 4% from Q2, but still represented 21.9% of total revenue.
- FirstSun completed the First Foundation core system conversion in late September. The company had achieved approximately 70% of its original $68.8 million annualized cost-savings target and expects to capture most of the remainder in Q4.
- Total loans declined approximately $110 million, while C&I balances increased $84 million. Management expects mid-single-digit loan and deposit growth in Q4, excluding brokered deposits.
- FirstSun repurchased approximately $50 million of common stock in Q3 and expects to complete the remaining $100 million under its repurchase program over the next three quarters.
Key Financial Data
| Metric | Q3 2026 result | Change or context |
|---|---|---|
| Adjusted net income | $48.2 million | Excludes merger-related expenses |
| Adjusted diluted EPS | $1.03 | Merger-related expenses reduced EPS by $0.21 on an after-tax basis |
| Adjusted return on average assets | 1.23% | — |
| Adjusted pretax pre-provision net income | $66.4 million, or $1.42 per share | Versus $1.50 per share in Q2 and $1.32 in Q1 |
| Net interest margin | 3.82% | Up 24 basis points from 3.58% in Q2 |
| Service fee revenue | Approximately $39.4 million | Down about 4% quarter over quarter; 21.9% of total revenue |
| Adjusted noninterest expense | Down approximately $0.8 million from Q2 | Salaries and benefits fell $5.4 million; other noninterest expense rose $4.5 million |
| Total loan balances | Down approximately $110 million | 3.8% annualized decline |
| C&I loans | Up approximately $84 million | Approximately 9% annualized growth |
| Total deposits | Down approximately $447 million | Primarily targeted runoff, seasonal contraction and some attrition |
| Provision expense | $4.4 million | Mainly specific reserves on two CRE loans |
| Allowance for credit losses | 1.52% of loans | Up 2 basis points from Q2 |
| Net charge-offs | $3.3 million | 11 basis points annualized; concentrated in two acquired credits |
| Tangible book value per share | $35.60 | Up from $35.16 at the end of Q2 |
| Loan-to-deposit ratio | 88.3% | At quarter-end |
| Wholesale funding ratio | 6.7% | At quarter-end |
Business and Operating Performance
Disclaimer: For information purposes only. Past performance is not indicative of future results.
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