FirstSun Capital Bancorp Reports Net Loss Amid Significant Asset Growth Following First Foundation Acquisition

FirstSun Capital Bancorp reported significant changes in its financial performance for the second quarter and first half of 2026, primarily driven by its recent acquisition of First Foundation Inc. The company recorded a net loss of $22.9 million for the second quarter, compared to a net income of $26.4 million in the same period last year. For the first half of 2026, the net loss was $1.3 million, a stark contrast to the $50 million net income reported for the first half of 2025. The diluted loss per share was $(0.49) for the second quarter and $(0.03) for the first half, compared to earnings of $0.93 and $1.77, respectively, in the prior year.

Total assets surged to $15.7 billion as of June 30, 2026, up from $8.5 billion at the end of 2025, largely due to the acquisition, which added approximately $11.2 billion in assets, including $6 billion in net loans. The company’s total deposits also increased significantly to $13.4 billion, compared to $7.1 billion at the end of 2025. The increase in deposits was primarily attributed to the acquisition of First Foundation, which brought in $8.8 billion in deposits.

The acquisition also impacted the company’s income statement, with net interest income rising to $143.2 million for the second quarter, an increase of 82.4% from $78.5 million in the same quarter of 2025. This increase was driven by higher interest income from loans and investment securities, which rose significantly due to the addition of interest-earning assets from First Foundation. However, the provision for credit losses increased to $40.4 million for the second quarter, compared to $4.5 million in the same period last year, reflecting higher net charge-offs on certain loans.

Operationally, FirstSun Capital Bancorp expanded its market presence into Southern California, Florida, Nevada, and Hawaii through the acquisition. The company also reported an increase in its employee headcount to 1,630, up from 1,168 a year earlier, reflecting the integration of First Foundation's workforce. The merger-related expenses for the second quarter amounted to $57.6 million, significantly impacting the overall financial results. Looking ahead, the company anticipates that the integration of First Foundation will yield operational efficiencies and cost savings, although it acknowledges the challenges associated with merging operations and systems.

In summary, FirstSun Capital Bancorp's recent acquisition has led to substantial growth in assets and deposits, but it has also resulted in increased losses and expenses in the short term. The company is focused on leveraging its expanded footprint and resources to improve profitability in the future.