FirstSun Capital Bancorp (“FirstSun”) (NASDAQ: FSUN) reported net loss of $(22.9) million for the second quarter of 2026 compared to net income of $26.4 million for the second quarter of 2025. Earnings per diluted share were $(0.49) for the second quarter of 2026 compared to $0.93 for the second quarter of 2025. Adjusted net income, a non-GAAP financial measure, was $21.0 million or $0.45 per diluted share for the second quarter of 2026 compared to $26.6 million or $0.94 per diluted share for the second quarter of 2025.
On April 1, 2026, we completed our merger with First Foundation and its results of operations are included in our consolidated financial results since the date of acquisition. Therefore, our second quarter and first half of 2026 results reflect increased levels of average balances, net interest income, and expenses compared to our prior quarter and first half of 2025. After purchase accounting adjustments, the acquisition added $11.2 billion of total assets, including $6.0 billion of net loans, as well as $10.5 billion of total liabilities, primarily consisting of $8.8 billion in deposits. We recorded preliminary goodwill of $9.1 million and core deposit intangibles and other intangibles of $90.2 million related to the acquisition. During the second quarter of 2026, we incurred $57.6 million in merger related expenses.
During the second quarter of 2026, we completed our previously announced balance sheet repositioning strategy, involving the sale or run-off of select First Foundation loans and securities and using proceeds from such sales and paydowns as well as other available cash and equivalents to reduce higher-cost funding sources. Our balance sheet repositioning strategy was designed to strengthen our capital position, enhance our credit profile, improve our liquidity, and support a more diversified, relationship-focused business model. Our balance sheet repositioning strategy resulted in the liquidation of assets, namely $1.2 billion in cash, $1.4 billion in securities, $1.3 billion in loans, the proceeds of which were used to reduce liabilities, namely $2.5 billion in deposits, and $1.4 billion in borrowings.
Neal Arnold, FirstSun’s Chief Executive Officer and President, commented, “The completion of the First Foundation acquisition in the second quarter marked a transformational milestone for our company. We have accelerated our growth strategy and expanded our footprint across some of the most dynamic markets in the country. In the second quarter, we also successfully completed the repositioning strategy and reduced the risk profile of the balance sheet we acquired. We believe the franchise is stronger, with less concentration risk, less liquidity risk, less interest rate sensitivity, and a stronger capital profile as a result of the repositioning actions. While we experienced a decline in our financial results this quarter due to two large loan charge-offs and the merger and integration expenses we incurred in conjunction with completing the First Foundation acquisition, we believe our core business remains strong and we believe we are well positioned for future success.
“I want to thank all of our teammates for their diligence, professionalism, and commitment to the hard work of integrating the businesses and continuing to serve our great clients and communities. We remain very excited about the growth opportunities across all of our markets as we continue building a premier regional bank.”
Share Repurchase Program
Our board of directors has authorized a share repurchase program to purchase up to $150.0 million of FirstSun’s common stock in open market transactions or privately negotiated transactions, including pursuant to a trading plan in accordance with Rule 10b5-1 and/or Rule 10b-18 under the Securities Exchange Act of 1934, as amended. The timing, pricing, and amount of any repurchases under the repurchase program will be determined by our management at its discretion based on a variety of factors, including, but not limited to, trading volume and market price of our common stock, corporate considerations, our financial performance, alternative uses for capital, general market and economic conditions, legal and regulatory requirements, and other factors. The repurchase program is authorized through June 30, 2027, although it may be modified, discontinued, or suspended at any time without prior notice. The repurchase program does not obligate FirstSun to purchase any shares.
Second Quarter 2026 Results
Net loss totaled $(22.9) million, or $(0.49) per diluted share, for the second quarter of 2026, compared to $21.6 million, or $0.76 per diluted share, for the prior quarter. Adjusted net income, a non-GAAP financial measure, totaled $21.0 million, or $0.45 per diluted share, for the second quarter of 2026, compared to $23.7 million, or $0.84 per diluted share, for the prior quarter.
Return on average total assets was (0.54)% for the second quarter of 2026, compared to 1.04% for the prior quarter, and return on average stockholders’ equity was (4.92)% for the second quarter of 2026, compared to 7.47% for the prior quarter. Adjusted return on average total assets and adjusted return on average stockholders’ equity, each a non-GAAP financial measure, were 0.50% and 4.52% respectively for the second quarter of 2026 compared to 1.14% and 8.20% respectively for the prior quarter.
Net Interest Income and Net Interest Margin
Net interest income totaled $143.2 million for the second quarter of 2026, an increase of $60.4 million compared to the prior quarter. Our net interest margin decreased 67 basis points to 3.58% compared to the prior quarter.
Average loans, including loans held-for-sale, increased by $5.8 billion in the second quarter of 2026, compared to the prior quarter, due primarily to loans acquired from First Foundation. Loan yield decreased by 20 basis points to 6.16% in the second quarter of 2026, compared to the prior quarter, reflecting a change in portfolio mix resulting from the addition of lower-yielding primarily public finance and multifamily loans acquired from First Foundation. Average investment securities increased by $1.6 billion in the second quarter of 2026, compared to the prior quarter, due primarily to securities acquired from First Foundation. Investment securities yield increased by 150 basis points to 4.80% in the second quarter of 2026, compared to the prior quarter, primarily reflecting a change in portfolio mix resulting from the addition of higher-yielding fixed and floating investment securities acquired from First Foundation. Average interest-bearing cash and other assets increased by $700.9 million in the second quarter of 2026, compared to the prior quarter. Interest-bearing cash and other assets yield decreased by 16 basis points to 3.20% in the second quarter of 2026, compared to the prior quarter, primarily reflecting a change in the composition of interest-bearing cash and other assets resulting from the First Foundation acquisition.
Average interest-bearing deposits increased $6.4 billion in the second quarter of 2026, compared to the prior quarter, due primarily to deposits assumed from First Foundation. Total cost of interest-bearing deposits increased by 31 basis points to 2.77% in the second quarter of 2026, compared to the prior quarter, primarily reflecting the addition of higher-cost, non-core deposits acquired from First Foundation.
Asset Quality and Provision for Credit Losses
The provision for credit losses increased $32.2 million to $40.4 million for the second quarter of 2026, compared to the prior quarter, primarily related to the downgrades and write-downs of two C&I lending relationships.
Net charge-offs for the second quarter of 2026 were $42.4 million resulting in an annualized ratio of net charge-offs to average loans of 1.45%, compared to net charge-offs of $10.6 million, or an annualized ratio of net charge-offs to average loans of 0.63% for the prior quarter. The increase in charge-offs for the second quarter of 2026 was primarily related to two C&I loans. The first is an asset-based loan to a materials distributor with an outstanding principal balance of approximately $23.6 million at June 30, 2026. Based on current information, we believe the borrower made fraudulent misrepresentations about its accounts receivable, collateral and historical financial statements and, as a result, in the second quarter of 2026, we recognized an approximate $22.0 million charge-off on this loan, or an annualized net charge-off of 0.75%. The second is a loan to a technology company with an outstanding principal balance of approximately $16.0 million at June 30, 2026. Based on recent developments impacting the borrower’s business, including deterioration in the borrower’s financial performance in the second quarter, we recognized a $12.9 million charge-off on this loan in the second quarter of 2026.
In connection with the acquisition of First Foundation, we recorded an initial allowance for credit losses of $92.5 million using the gross up approach, comprised of a $39 million reserve for purchased credit deteriorated loans that exhibited a more-than-insignificant amount of credit deterioration since origination and a $53.5 million reserve on purchased seasoned loans. The allowance for credit losses as a percentage of loans outstanding was 1.50% at June 30, 2026, an increase of 30 basis points from the prior quarter. The ratio of nonperforming assets to total assets was 1.32% at June 30, 2026, compared to 0.82% at March 31, 2026.
Noninterest Income
Noninterest income totaled $40.9 million for the second quarter of 2026, an increase of $13.8 million from the prior quarter. Income from trust and investment advisory fees increased $7.9 million for the second quarter of 2026 from the prior quarter, primarily due to higher assets under management associated with the acquisition of First Foundation. Income from mortgage banking services increased $1.6 million for the second quarter of 2026 from the prior quarter, primarily due to an increase in loan originations sold and corresponding capitalized servicing rights as well as slower balance runoff in the servicing portfolio. Other noninterest income increased $3.3 million for the second quarter of 2026 from the prior quarter, primarily due to an increase in the fair value of investments related to our deferred compensation plan partially offset by a write-down of an OREO property.
Noninterest income as a percentage of total revenue1 was 22.2% for the second quarter of 2026, a decrease of 2.5% from the prior quarter.
Noninterest Expense
Noninterest expense totaled $171.7 million for the second quarter of 2026, an increase of $96.4 million from the prior quarter. Merger related expenses increased $54.9 million in the second quarter of 2026 from the prior quarter. Salary and employee benefits increased $21.4 million in the second quarter of 2026 from the prior quarter, primarily due to an increase in headcount associated with the acquisition of First Foundation. Other noninterest expense increased $8.1 million in the second quarter of 2026 from the prior quarter, primarily due to higher data processing and FDIC insurance expenses associated with our increased scale following the acquisition of First Foundation.
The efficiency ratio for the second quarter of 2026 was 93.25% compared to 68.52% for the prior quarter. The adjusted efficiency ratio, a non-GAAP financial measure, for the second quarter of 2026 was 61.99% compared to 66.08% for the prior quarter.
Tax Rate
The effective tax rate was 18.3% for the second quarter of 2026, compared to 18.1% for the prior quarter.
Loans
Loans were $11.6 billion at June 30, 2026, compared to $6.9 billion at March 31, 2026, an increase of $4.6 billion, or 267.5% on an annualized basis, due primarily to the acquisition of First Foundation. Loans, excluding the impact of acquired First Foundation loans, net of repositioning, a non-GAAP financial measure, decreased $105.5 million in the second quarter of 2026, or 6.0% on an annualized basis from the prior quarter. See “Non-GAAP Financial Measures and Reconciliations” below.
Deposits
Deposits were $13.4 billion at June 30, 2026, compared to $7.1 billion at March 31, 2026, an increase of $6.3 billion in the second quarter of 2026, or 358.3% on an annualized basis, due primarily to the acquisition of First Foundation. Deposits, excluding the impact of acquired First Foundation deposits, net of repositioning, a non-GAAP financial measure, increased $83.9 million in the second quarter of 2026, or 4.8% on an annualized basis from the prior quarter. See “Non-GAAP Financial Measures and Reconciliations” below.
Average deposits were $14.5 billion for the second quarter of 2026, compared to $7.0 billion for the prior quarter, an increase of $7.4 billion or 424.8% on an annualized basis. Average deposits, excluding the impact of acquired First Foundation deposits, net of repositioning, a non-GAAP financial measure, increased $226.5 million in the second quarter of 2026, or 12.9% on an annualized basis from the prior quarter. See “Non-GAAP Financial Measures and Reconciliations” below.
Noninterest-bearing deposit accounts represented 19.9% of total deposits at June 30, 2026 and our loan to deposit ratio was 86.2% at June 30, 2026.
The ratio of total uninsured deposits to total deposits was estimated to be 31.6% at June 30, 2026. The ratio of total uninsured and uncollateralized deposits to total deposits was estimated to be 28.0% at June 30, 2026.2
Capital
Capital ratios remain strong and above “well-capitalized” thresholds. As of June 30, 2026, our common equity tier 1 risk-based capital ratio was 11.95%, total risk-based capital ratio was 14.13% and tier 1 leverage ratio was 9.47%. Book value per share was $39.29 at June 30, 2026, a decrease of $2.79 from March 31, 2026. Tangible book value per share, a non-GAAP financial measure, was $35.16 at June 30, 2026, a decrease of $3.41 from March 31, 2026. See “Non-GAAP Financial Measures and Reconciliations” below.
Non-GAAP Financial Measures
This press release (including the tables within the “Non-GAAP Financial Measures and Reconciliations” section) contains financial measures determined by methods other than in accordance with accounting principles generally accepted in the United States (“GAAP”). Our management uses these non-GAAP financial measures in their analysis of our performance and the efficiency of our operations. Management believes these non-GAAP measures provide a greater understanding of ongoing operations, enhance comparability of results with prior periods and demonstrate the effects of significant items in the current period. We believe a meaningful analysis of our financial performance requires an understanding of the factors underlying that performance. Our management believes investors may find these non-GAAP financial measures useful. These non-GAAP financial measures, however, should not be viewed as a substitute for financial measures determined in accordance with GAAP, nor are they necessarily comparable to non-GAAP performance measures that may be presented by other companies. Below is a listing of the non-GAAP measures used in this press release:
- Tangible stockholders’ equity to tangible assets;
- Tangible stockholders’ equity to tangible assets, reflecting net unrealized losses on HTM securities, net of tax;
- Tangible book value per share;
- Adjusted net income;
- Adjusted diluted earnings per share;
- Adjusted return on average total assets;
- Adjusted return on average stockholders’ equity;
- Return on average tangible stockholders’ equity;
- Adjusted return on average tangible stockholders’ equity;
- Adjusted total noninterest expense;
- Adjusted efficiency ratio; and
- Fully tax equivalent (“FTE”) net interest income and net interest margin.
- Adjusted loan growth
- Adjusted deposit growth
The tables beginning within the “Non-GAAP Financial Measures and Reconciliations” section provide a reconciliation of the non-GAAP financial measures contained in this press release to the most comparable GAAP equivalent.
1 Total revenue is net interest income plus noninterest income.
2 Uninsured deposits and uninsured and uncollateralized deposits are reported for our wholly-owned subsidiary Sunflower Bank, N.A.
About FirstSun
FirstSun Capital Bancorp (“FirstSun”) (NASDAQ: FSUN), headquartered in Denver, Colorado, is the financial holding company for wholly owned subsidiaries including Sunflower Bank, N.A. and First Foundation Advisors. Through its subsidiaries and affiliated entities, FirstSun provides a full range of relationship-focused services to meet personal, business, and wealth management financial objectives, with depository branches in ten states and mortgage capabilities in 44 states. FirstSun had total consolidated assets of $15.7 billion as of June 30, 2026.
To learn more visit or .
Investor Earnings Conference Call
FirstSun will host a conference call on Tuesday, July 28, 2026 at 11:00 a.m. (ET) to discuss its second quarter 2026 financial results.
Participants may join by phone by dialing (833) 461-5787 for toll-free within the US and (585) 542-9983 for all other locations. The conference Meeting ID is 239801426. The numbers for international participants are available here: .
An audio replay of the live call, and the accompanying presentation slides, will be available following the live event on the “Events & Presentations page” of FirstSun’s website at https://ir.firstsuncb.com/overview/default.aspx.
Deposits Classification
Previously, deposit amounts related to certain NOW accounts with limited monthly transaction activity were able to be reclassified to money market accounts to reduce reserve requirements at the Federal Reserve. As there is no longer any impact to reserve requirements across different deposit products, we have discontinued this product reclassification practice and have revised the presentation of those deposits to conform to the current presentation for periods prior to March 31, 2026.
CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS
This press release contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. All statements other than statements of historical fact are forward-looking statements. Examples of forward-looking statements include, but are not limited to, statements regarding our markets, our merger with First Foundation, including our belief regarding the benefits of the merger and our recently completed balance sheet repositioning on our franchise, the strength of our core business, our ability to drive growth, and that we are well positioned for future success. These statements reflect management’s current expectations and are not guarantees of future performance. Words such as “focus,” “confident,” “may,” “will,” “believe,” “anticipate,” “expect,” “intend,” “opportunity,” “continue,” “should,” “could,” “excited,” “progress” and variations of such words and similar expressions are intended to identify such forward-looking statements. Forward-looking statements are subject to risks, uncertainties and assumptions that are difficult to predict with regard to timing, extent, likelihood and degree of occurrence, which could cause actual results to differ materially from anticipated results. Such risks, uncertainties and assumptions, include, among others, the following: changes in interest rates and their related impact on macroeconomic conditions, customer behavior, our funding costs and our loan and securities portfolios; the quality or composition of our loan or investment portfolios and changes therein; failure to maintain our mortgage production flow to secondary markets; the sufficiency of liquidity and changes in our capital position; the inability of our infrastructure initiatives to reduce expenses; increased deposit volatility; potential regulatory developments; U.S. and global trade policies and tensions, including change in, or the imposition of, tariffs and/or trade barriers and the economic impacts, volatility and uncertainty resulting therefrom; ongoing geopolitical conflicts, including hostilities involving Iran and the Middle East, which may contribute to volatility in energy prices, inflation, financial markets, cybersecurity threats, and broader macroeconomic conditions, any of which could adversely affect our borrowers, deposit base, liquidity, capital and results of operation; the possibility that the anticipated benefits of the First Foundation merger, including anticipated cost savings and strategic gains, are not realized when expected or at all; the integration of the businesses and operations of FirstSun and First Foundation may take longer than anticipated or be more costly than anticipated or have unanticipated adverse results relating to the combined company’s business; the diversion of management’s attention from ongoing business operations and opportunities due to the First Foundation merger; other factors, many of which are beyond our control.
We caution readers that the foregoing list of factors is not exclusive, is not necessarily in order of importance and readers should not place undue reliance on any forward-looking statements. Additional information concerning additional factors that could materially affect the forward-looking statements in this press release can be found in the cautionary language included under the headings “Cautionary Note Regarding Forward-Looking Statements” and “Risk Factors” in FirstSun’s Annual Report on Form 10-K for the year ended December 31, 2025 and other documents subsequently filed by FirstSun with the SEC. Further, any forward-looking statement speaks only as of the date on which it is made and we do not intend to and disclaim any obligation to update or revise any forward-looking statement to reflect events or circumstances after the date on which the statement is made or to reflect the occurrence of unanticipated events, except as required by law.
Summary Data:
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As of and for the three months ended | ($ in thousands, except per share amounts) June 30, 2026 March 31, 2026 December 31, 2025 September 30, 2025 June 30, 2025 | Net interest income $ 143,195 $ 82,779 $ 83,461 $ 80,953 $ 78,499 | Provision for credit losses 40,400 8,250 6,200 10,100 4,500 | Noninterest income 40,948 27,175 26,744 26,333 27,073 | Noninterest expense 171,712 75,341 72,041 68,901 68,110 | (Loss) income before income taxes (27,969 ) 26,363 31,964 28,285 32,962 | (Benefit) provision for income taxes (5,119 ) 4,780 7,157 5,111 6,576 | Net (loss) income (22,850 ) 21,583 24,807 23,174 26,386 | Adjusted net income1 21,021 23,673 26,923 23,412 26,601 | Weighted average common shares outstanding, basic 46,673,555 27,851,041 27,839,044 27,801,255 27,783,710 | Weighted average common shares outstanding, diluted 46,673,555 28,316,608 28,262,530 28,291,778 28,232,319 | Diluted (loss) earnings per share $ (0.49 ) $ 0.76 $ 0.88 $ 0.82 $ 0.93 | Adjusted diluted earnings per share1 0.45 0.84 0.95 0.83 0.94 | Return on average total assets (0.54 )% 1.04 % 1.17 % 1.09 % 1.28 % | Adjusted return on average total assets1 0.50 % 1.14 % 1.27 % 1.10 % 1.29 % | Return on average stockholders' equity (4.92 )% 7.47 % 8.58 % 8.22 % 9.74 % | Adjusted return on average stockholders' equity1 4.52 % 8.20 % 9.31 % 8.31 % 9.82 % | Return on average tangible stockholders' equity1 (4.69 )% 8.31 % 9.58 % 9.20 % 10.91 % | Adjusted return on average tangible stockholders' equity1 5.86 % 9.10 % 10.38 % 9.30 % 11.00 % | Net interest margin 3.58 % 4.25 % 4.18 % 4.07 % 4.07 % | Net interest margin (FTE basis)1 3.63 % 4.31 % 4.23 % 4.12 % 4.13 % | Efficiency ratio 93.25 % 68.52 % 65.37 % 64.22 % 64.52 % | Adjusted efficiency ratio1 61.99 % 66.08 % 63.36 % 64.00 % 64.25 % | Noninterest income to total revenue2 22.2 % 24.7 % 24.3 % 24.5 % 25.6 % | Total assets $ 15,717,985 $ 8,565,123 $ 8,485,162 $ 8,495,437 $ 8,435,861 | Loans held-for-sale 140,706 144,407 100,539 85,250 90,781 | Loans held-for-investment 11,568,443 6,939,972 6,673,180 6,681,629 6,507,066 | Total deposits 13,418,004 7,087,513 7,107,356 7,105,415 7,100,164 | Total stockholders' equity 1,837,392 1,175,507 1,153,356 1,127,513 1,095,402 | Loan to deposit ratio 86.2 % 97.9 % 93.9 % 94.0 % 91.6 % | Period end common shares outstanding 46,765,434 27,935,888 27,887,337 27,854,764 27,834,525 | Book value per share $ 39.29 $ 42.08 $ 41.36 $ 40.48 $ 39.35 | Tangible book value per share1 35.16 38.57 37.83 36.92 35.77 |
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As of and for the six months ended | ($ in thousands, except per share amounts) June 30, 2026 June 30, 2025 | Net interest income $ 225,974 $ 152,977 | Provision for credit losses 48,650 8,300 | Noninterest income 68,123 48,802 | Noninterest expense 247,053 130,832 | (Loss) income before income taxes (1,606 ) 62,647 | (Benefit) provision for income taxes (339 ) 12,692 | Net (loss) income (1,267 ) 49,955 | Adjusted net income1 44,694 50,170 | Weighted average common shares outstanding, basic 37,314,285 27,753,098 | Weighted average common shares outstanding, diluted 37,314,285 28,263,943 | Diluted (loss) earnings per share $ (0.03 ) $ 1.77 | Adjusted diluted earnings per share1 $ 1.20 $ 1.78 | Return on average total assets (0.02 )% 1.24 % | Adjusted return on average total assets1 0.71 % 1.25 % | Return on average stockholders' equity (0.17 )% 9.39 % | Adjusted return on average stockholders’ equity1 5.93 % 9.43 % | Return on average tangible stockholders' equity1 0.36 % 10.55 % | Adjusted return on average tangible stockholders' equity1 7.12 % 10.60 % | Net interest margin 3.80 % 4.07 % | Net interest margin (FTE basis)1 3.85 % 4.13 % | Efficiency ratio 84.00 % 64.84 % | Adjusted efficiency ratio1 63.52 % 64.70 % | Noninterest income to total revenue2 23.2 % 24.2 % | Total assets $ 15,717,985 $ 8,435,861 | Loans held-for-sale 140,706 90,781 | Loans held-for-investment 11,568,443 6,507,066 | Total deposits 13,418,004 7,100,164 | Total stockholders' equity 1,837,392 1,095,402 | Loan to deposit ratio 86.2 % 91.6 % | Period end common shares outstanding 46,765,434 27,834,525 | Book value per share $ 39.29 $ 39.35 | Tangible book value per share1 $ 35.16 $ 35.77 | 1 Represents a non-GAAP financial measure. See the tables within the “Non-GAAP Financial Measures and Reconciliations” section for a reconciliation of each non-GAAP measure to the most comparable GAAP equivalent. | 2 Total revenue is net interest income plus noninterest income. |
Condensed Consolidated Statements of Income (Unaudited):
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For the three months ended For the six months ended | ($ in thousands, except per share amounts) June 30, 2026 June 30, 2025 June 30, 2026 June 30, 2025 | Total interest income $ 230,016 $ 116,921 $ 346,142 $ 227,368 | Total interest expense 86,821 38,422 120,168 74,391 | Net interest income 143,195 78,499 225,974 152,977 | Provision for credit losses 40,400 4,500 48,650 8,300 | Net interest income after credit loss expense 102,795 73,999 177,324 144,677 | Noninterest income: | Deposit account service fees 2,292 2,016 4,388 4,043 | Treasury management service fees 5,067 4,333 9,680 8,527 | Credit and debit card fees 2,952 2,728 5,665 5,314 | Trust and investment advisory fees 9,413 1,473 10,902 2,894 | Mortgage banking services, net 15,958 13,274 30,273 22,329 | Other noninterest income 5,266 3,249 7,215 5,695 | Total noninterest income 40,948 27,073 68,123 48,802 | Noninterest expense: | Salary and employee benefits 68,744 43,921 116,100 83,482 | Occupancy, equipment and software 15,504 9,541 25,510 19,077 | Customer service costs 2,742 — 2,742 — | Amortization and impairment of intangible assets 4,237 578 4,744 1,206 | Merger related expenses 57,559 285 60,240 285 | Other noninterest expenses 22,926 13,785 37,717 26,782 | Total noninterest expense 171,712 68,110 247,053 130,832 | (Loss) income before income taxes (27,969 ) 32,962 (1,606 ) 62,647 | (Benefit) provision for income taxes (5,119 ) 6,576 (339 ) 12,692 | Net (loss) income $ (22,850 ) $ 26,386 $ (1,267 ) $ 49,955 | (Loss) earnings per share - basic $ (0.49 ) $ 0.95 $ (0.03 ) $ 1.80 | (Loss) earnings per share - diluted (0.49 ) 0.93 $ (0.03 ) $ 1.77 |
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For the three months ended | ($ in thousands, except per share amounts) June 30, 2026 March 31, 2026 December 31, 2025 September 30, 2025 June 30, 2025 | Total interest income $ 230,016 $ 116,126 $ 119,273 $ 121,128 $ 116,921 | Total interest expense 86,821 33,347 35,812 40,175 38,422 | Net interest income 143,195 82,779 83,461 80,953 78,499 | Provision for credit losses 40,400 8,250 6,200 10,100 4,500 | Net interest income after credit loss expense 102,795 74,529 77,261 70,853 73,999 | Noninterest income: | Deposit account service fees 2,292 2,096 2,116 2,162 2,016 | Treasury management service fees 5,067 4,613 4,544 4,402 4,333 | Credit and debit card fees 2,952 2,713 2,744 2,671 2,728 | Trust and investment advisory fees 9,413 1,489 1,515 1,536 1,473 | Mortgage banking services, net 15,958 14,315 12,102 12,641 13,274 | Other noninterest income 5,266 1,949 3,723 2,921 3,249 | Total noninterest income 40,948 27,175 26,744 26,333 27,073 | Noninterest expense: | Salary and employee benefits 68,744 47,356 43,520 44,822 43,921 | Occupancy, equipment and software 15,504 10,006 9,576 9,591 9,541 | Customer service costs 2,742 — — — — | Amortization and impairment of intangible assets 4,237 507 628 578 578 | Merger related expenses 57,559 2,681 2,217 241 285 | Other noninterest expenses 22,926 14,791 16,100 13,669 13,785 | Total noninterest expense 171,712 75,341 72,041 68,901 68,110 | (Loss) income before income taxes (27,969 ) 26,363 31,964 28,285 32,962 | (Benefit) provision for income taxes (5,119 ) 4,780 7,157 5,111 6,576 | Net (loss) income $ (22,850 ) $ 21,583 $ 24,807 $ 23,174 $ 26,386 | (Loss) earnings per share - basic $ (0.49 ) $ 0.77 $ 0.89 $ 0.83 $ 0.95 | (Loss) earnings per share - diluted (0.49 ) 0.76 0.88 0.82 0.93 |
Condensed Consolidated Balance Sheets as of (Unaudited):
($ in thousands) June 30, 2026 March 31, 2026 December 31, 2025 September 30, 2025 June 30, 2025 | Assets | Cash and cash equivalents $ 989,511 $ 413,732 $ 652,592 $ 659,899 $ 785,115 | Securities available-for-sale, at fair value 1,907,374 458,543 468,970 476,114 473,468 | Securities held-to-maturity 33,274 33,553 33,839 34,247 34,581 | Loans held-for-sale, at fair value 140,706 144,407 100,539 85,250 90,781 | Loans 11,568,443 6,939,972 6,673,180 6,681,629 6,507,066 | Allowance for credit losses (173,551 ) (82,955 ) (85,016 ) (84,040 ) (82,993 ) | Loans, net 11,394,892 6,857,017 6,588,164 6,597,589 6,424,073 | Mortgage servicing rights, at fair value 99,736 88,993 86,651 85,695 84,736 | Premises and equipment, net 118,967 81,138 81,523 81,886 82,248 | Other real estate owned and foreclosed assets, net 16,808 10,908 11,514 13,418 13,052 | Goodwill 102,536 93,483 93,483 93,483 93,483 | Core deposits and other intangible assets, net 90,452 4,476 4,983 5,650 6,228 | Other assets 823,729 378,873 362,904 362,206 348,096 | Total assets $ 15,717,985 $ 8,565,123 $ 8,485,162 $ 8,495,437 $ 8,435,861 | Liabilities and Stockholders' Equity | Liabilities: | Deposits: | Noninterest-bearing accounts $ 2,673,289 $ 1,599,919 $ 1,651,373 $ 1,674,497 $ 1,706,678 | Interest-bearing accounts: | Demand and NOW 2,869,439 1,569,910 1,483,841 1,457,886 1,485,058 | Savings 2,409,906 387,140 378,631 386,235 397,120 | Money market 3,453,761 2,318,768 2,301,837 2,233,309 2,082,043 | Certificates of deposit 2,011,609 1,211,776 1,291,674 1,353,488 1,429,265 | Total deposits 13,418,004 7,087,513 7,107,356 7,105,415 7,100,164 | Securities sold under agreements to repurchase 17,475 7,670 11,160 9,824 11,173 | Federal Home Loan Bank advances — 75,000 — — — | Subordinated debt, net 205,256 36,754 36,680 76,163 76,066 | Other liabilities 239,858 182,679 176,610 176,522 153,056 | Total liabilities 13,880,593 7,389,616 7,331,806 7,367,924 7,340,459 | Stockholders' equity: | Preferred stock — — — — — | Common stock 5 3 3 3 3 | Additional paid-in capital 1,238,000 550,709 549,617 548,952 547,950 | Retained earnings 629,819 652,669 631,086 606,279 583,105 | Accumulated other comprehensive loss, net (30,432 ) (27,874 ) (27,350 ) (27,721 ) (35,656 ) | Total stockholders' equity 1,837,392 1,175,507 1,153,356 1,127,513 1,095,402 | Total liabilities and stockholders' equity $ 15,717,985 $ 8,565,123 $ 8,485,162 $ 8,495,437 $ 8,435,861 |
Consolidated Capital Ratios as of:
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June 30, 2026 March 31, 2026 December 31, 2025 September 30, 2025 June 30, 2025 | Stockholders' equity to total assets 11.69 % 13.72 % 13.59 % 13.27 % 12.99 % | Tangible stockholders' equity to tangible assets1 10.59 % 12.73 % 12.58 % 12.25 % 11.94 % | Tangible stockholders' equity to tangible assets reflecting net unrealized losses on HTM securities, net of tax1, 2 10.57 % 12.69 % 12.54 % 12.21 % 11.90 % | Tier 1 leverage ratio 9.47 % 13.06 % 12.75 % 12.44 % 12.39 % | Common equity tier 1 risk-based capital ratio 11.95 % 13.77 % 14.12 % 13.79 % 13.78 % | Tier 1 risk-based capital ratio 11.95 % 13.77 % 14.12 % 13.79 % 13.78 % | Total risk-based capital ratio 14.13 % 15.29 % 15.73 % 15.81 % 15.94 % | 1 Represents a non-GAAP financial measure. See the tables within the “Non-GAAP Financial Measures and Reconciliations” section for a reconciliation of each non-GAAP measure to the most comparable GAAP equivalent. 2 Tangible stockholders’ equity and tangible assets have been adjusted to reflect net unrealized losses on held-to-maturity securities, net of tax. |
Summary of Net Interest Margin:
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For the three months ended For the six months ended |
June 30, 2026 June 30, 2025 June 30, 2026 June 30, 2025 | (In thousands) Average Balance Average Yield/Rate Average Balance Average Yield/Rate Average Balance Average Yield/Rate Average Balance Average Yield/Rate | Interest Earning Assets | Loans1 $ 12,694,317 6.16 % $ 6,620,493 6.43 % $ 9,792,021 6.23 % $ 6,521,154 6.39 % | Investment securities 2,093,214 4.80 % 510,350 3.48 % 1,300,988 4.51 % 506,103 3.51 % | Interest-bearing cash and other assets 1,244,337 3.20 % 596,713 4.28 % 895,720 3.25 % 549,050 4.32 % | Total earning assets 16,031,868 5.75 % 7,727,556 6.07 % 11,988,729 5.82 % 7,576,307 6.05 % | Other assets 962,089 537,156 743,804 543,032 | Total assets $ 16,993,957 $ 8,264,712 $ 12,732,533 $ 8,119,339 | Interest-bearing liabilities | Demand and NOW deposits $ 3,012,754 2.06 % $ 1,518,316 1.77 % $ 2,273,546 1.94 % $ 1,495,079 1.71 % | Savings deposits 2,428,253 2.70 % 401,093 0.58 % 1,410,791 2.40 % 400,948 0.58 % | Money market deposits 3,611,570 2.97 % 1,934,487 3.28 % 2,955,179 2.92 % 1,813,344 3.19 % | Certificates of deposit 2,798,815 3.35 % 1,504,235 3.76 % 2,007,012 3.34 % 1,525,814 3.84 % | Total deposits 11,851,392 2.77 % 5,358,131 2.78 % 8,646,528 2.67 % 5,235,185 2.76 % | Repurchase agreements 23,468 2.61 % 9,024 1.61 % 16,628 2.34 % 9,318 1.59 % | Total deposits and repurchase agreements 11,874,860 2.77 % 5,367,155 2.78 % 8,663,156 2.67 % 5,244,503 2.76 % | FHLB borrowings 149,374 3.97 % 2,308 4.72 % 75,646 3.95 % 15,823 4.61 % | Other long-term borrowings 204,667 6.46 % 76,025 6.19 % 121,157 6.36 % 75,966 6.31 % | Total interest-bearing liabilities 12,228,901 2.85 % 5,445,488 2.83 % 8,859,959 2.74 % 5,336,292 2.81 % | Noninterest-bearing deposits 2,622,311 1,587,302 2,125,679 1,559,878 | Other liabilities 278,849 145,064 227,357 150,172 | Stockholders' equity 1,863,896 1,086,858 1,519,538 1,072,997 | Total liabilities and stockholders' equity $ 16,993,957 $ 8,264,712 $ 12,732,533 $ 8,119,339 | Net interest spread 2.90 % 3.24 % 3.08 % 3.24 % | Net interest margin 3.58 % 4.07 % 3.80 % 4.07 % | Net interest margin (on FTE basis)2 3.63 % 4.13 % 3.85 % 4.13 % |
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For the three months ended |
June 30, 2026 March 31, 2026 December 31, 2025 September 30, 2025 June 30, 2025 | (In thousands) Average Balance Average Yield/Rate Average Balance Average Yield/Rate Average Balance Average Yield/Rate Average Balance Average Yield/Rate Average Balance Average Yield/Rate | Interest Earning Assets | Loans1 $ 12,694,317 6.16 % $ 6,857,477 6.36 % $ 6,825,404 6.37 % $ 6,667,158 6.49 % $ 6,620,493 6.43 % | Investment securities 2,093,214 4.80 % 499,792 3.30 % 506,964 3.35 % 505,999 3.43 % 510,350 3.48 % | Interest-bearing cash and other assets 1,244,337 3.20 % 543,396 3.36 % 583,717 3.68 % 714,885 4.25 % 596,713 4.28 % | Total earning assets 16,031,868 5.75 % 7,900,665 5.96 % 7,916,085 5.98 % 7,888,042 6.09 % 7,727,556 6.07 % | Other assets 962,089 523,094 519,607 540,079 537,156 | Total assets $ 16,993,957 $ 8,423,759 $ 8,435,692 $ 8,428,121 $ 8,264,712 | Interest-bearing liabilities | Demand and NOW deposits $ 3,012,754 2.06 % $ 1,526,124 1.69 % $ 1,464,053 1.75 % $ 1,437,298 1.89 % $ 1,518,316 1.77 % | Savings deposits 2,428,253 2.70 % 382,025 0.50 % 381,978 0.55 % 391,444 0.59 % 401,093 0.58 % | Money market deposits 3,611,570 2.97 % 2,291,494 2.84 % 2,247,034 2.99 % 2,211,754 3.28 % 1,934,487 3.28 % | Certificates of deposit 2,798,815 3.35 % 1,206,411 3.32 % 1,284,200 3.49 % 1,397,371 3.64 % 1,504,235 3.76 % | Total deposits 11,851,392 2.77 % 5,406,054 2.46 % 5,377,265 2.60 % 5,437,867 2.81 % 5,358,131 2.78 % | Repurchase agreements 23,468 2.61 % 9,712 1.70 % 9,146 1.71 % 8,055 1.82 % 9,024 1.61 % | Total deposits and repurchase agreements 11,874,860 2.77 % 5,415,766 2.46 % 5,386,411 2.60 % 5,445,922 2.81 % 5,367,155 2.78 % | FHLB borrowings 149,374 3.97 % 1,100 3.12 % — — % — — % 2,308 4.72 % | Other long-term borrowings 204,667 6.46 % 36,719 5.72 % 36,650 5.82 % 76,117 8.41 % 76,025 6.19 % | Total interest-bearing liabilities 12,228,901 2.85 % 5,453,585 2.48 % 5,423,061 2.62 % 5,522,039 2.89 % 5,445,488 2.83 % | Noninterest-bearing deposits 2,622,311 1,623,528 1,698,126 1,642,346 1,587,302 | Other liabilities 278,849 175,292 167,658 145,730 145,064 | Stockholders' equity 1,863,896 1,171,354 1,146,847 1,118,006 1,086,858 | Total liabilities and stockholders' equity $ 16,993,957 $ 8,423,759 $ 8,435,692 $ 8,428,121 $ 8,264,712 | Net interest spread 2.90 % 3.48 % 3.36 % 3.20 % 3.24 % | Net interest margin 3.58 % 4.25 % 4.18 % 4.07 % 4.07 % | Net interest margin (on FTE basis)2 3.63 % 4.31 % 4.23 % 4.12 % 4.13 % | 1 Includes loans held-for-investment, including nonaccrual loans, and loans held-for-sale. | 2 Represents a non-GAAP financial measure. See the tables beginning within the “Non-GAAP Financial Measures and Reconciliations” section for a reconciliation of each non-GAAP measure to the most comparable GAAP equivalent. |
Deposits as of:
($ in thousands) June 30, 2026 March 31, 2026 December 31, 2025 September 30, 2025 June 30, 2025 | Consumer | Noninterest-bearing deposit accounts $ 1,000,584 $ 410,296 $ 404,666 $ 412,568 $ 426,909 | Interest-bearing deposit accounts: | Demand and NOW 937,796 607,465 590,535 598,499 610,623 | Savings 1,917,926 313,910 308,655 314,954 322,672 | Money market 2,039,795 1,397,890 1,400,593 1,416,258 1,306,140 | Certificates of deposit 1,044,959 793,503 809,401 869,077 937,439 | Total interest-bearing deposit accounts 5,940,476 3,112,768 3,109,184 3,198,788 3,176,874 | Total consumer deposits $ 6,941,060 $ 3,523,064 $ 3,513,850 $ 3,611,356 $ 3,603,783 | Business | Noninterest-bearing deposit accounts $ 1,672,705 $ 1,189,623 $ 1,246,707 $ 1,261,929 $ 1,279,769 | Interest-bearing deposit accounts: | Demand and NOW 1,905,387 962,445 893,306 859,387 874,435 | Savings 434,076 73,230 69,976 71,281 74,448 | Money market 1,413,966 920,878 901,244 817,051 775,903 | Certificates of deposit 103,360 51,940 57,349 57,225 56,930 | Total interest-bearing deposit accounts 3,856,789 2,008,493 1,921,875 1,804,944 1,781,716 | Total business deposits $ 5,529,494 $ 3,198,116 $ 3,168,582 $ 3,066,873 $ 3,061,485 | Wholesale deposits1 $ 947,450 $ 366,333 $ 424,924 $ 427,186 $ 434,896 | Total deposits $ 13,418,004 $ 7,087,513 $ 7,107,356 $ 7,105,415 $ 7,100,164 | 1 Wholesale deposits primarily consist of brokered deposits included in our condensed consolidated balance sheets within certificates of deposit. |
Balance Sheet Ratios as of:
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June 30, 2026 March 31, 2026 December 31, 2025 September 30, 2025 June 30, 2025 | Cash to total assets1 6.2 % 4.7 % 7.6 % 7.7 % 9.2 % | Loan to deposit ratio 86.2 % 97.9 % 93.9 % 94.0 % 91.6 % | Uninsured deposits to total deposits2 31.6 % 35.4 % 36.6 % 36.2 % 37.0 % | Uninsured and uncollateralized deposits to total deposits2 28.0 % 28.6 % 29.0 % 28.3 % 28.3 % | Wholesale deposits and borrowings to total liabilities3 6.8 % 6.0 % 5.8 % 5.8 % 5.9 % | 1 Cash consists of unencumbered cash and amounts due from banks and interest-bearing deposits with other financial institutions. 2 Uninsured deposits and uninsured and uncollateralized deposits are reported for our wholly-owned subsidiary Sunflower Bank, N.A. and are estimated. 3 Wholesale deposits primarily consist of brokered deposits included in our condensed consolidated balance sheets within certificates of deposit. Wholesale borrowings consist of FHLB overnight and term advances. |
Loan Portfolio as of:
($ in thousands) June 30, 2026 March 31, 2026 December 31, 2025 September 30, 2025 June 30, 2025 | Commercial and industrial1 $ 3,579,772 $ 3,160,777 $ 2,937,867 $ 2,945,697 $ 2,779,767 | Commercial real estate: | Non-owner occupied 1,195,172 778,778 742,002 725,425 705,749 | Owner occupied 951,226 694,190 700,774 668,172 660,334 | Construction and land 218,441 280,781 268,652 343,803 383,969 | Multifamily 2,613,194 227,980 210,368 183,504 134,520 | Total commercial real estate 4,978,033 1,981,729 1,921,796 1,920,904 1,884,572 | Residential real estate2 1,913,575 1,216,810 1,221,086 1,209,742 1,226,760 | Public Finance 957,556 494,539 501,582 516,247 524,441 | Consumer 29,569 31,875 32,651 38,931 42,881 | Other 114,047 54,242 58,198 50,108 48,645 | Loans, excluding loan hedge fair value 11,572,552 6,939,972 6,673,180 6,681,629 6,507,066 | Loan hedge fair value3 (4,109 ) — — — — | Loans $ 11,568,443 $ 6,939,972 $ 6,673,180 $ 6,681,629 $ 6,507,066 | 1As of September 30, 2025, loans to nondepository financial institutions are now included within commercial and industrial. Prior period amounts have been reclassified to conform to the current presentation. 2 Includes 1-4 family residential construction. 3 Represents fair value hedge basis adjustments related to active portfolio layer method hedges, which are not allocated to individual loans. |
Asset Quality:
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As of and for the three months ended | ($ in thousands) June 30, 2026 March 31, 2026 December 31, 2025 September 30, 2025 June 30, 2025 | Net charge-offs (recoveries) $ 42,404 $ 10,561 $ 5,024 $ 9,053 $ 13,547 | Allowance for credit losses 173,551 82,955 85,016 84,040 82,993 | Nonperforming loans, including nonaccrual loans, and accrual loans greater than 90 days past due 190,115 59,656 60,771 69,641 54,841 | Nonperforming assets 206,923 70,564 72,285 83,059 67,893 | Ratio of net charge-offs (recoveries) to average loans outstanding 1.45 % 0.63 % 0.30 % 0.55 % 0.83 % | Allowance for credit losses to loans outstanding 1.50 % 1.20 % 1.27 % 1.26 % 1.28 % | Allowance for credit losses to nonperforming loans 91.29 % 139.06 % 139.90 % 120.68 % 151.33 % | Nonperforming loans to loans 1.64 % 0.86 % 0.91 % 1.04 % 0.84 % | Nonperforming assets to total assets 1.32 % 0.82 % 0.85 % 0.98 % 0.80 % |
Non-GAAP Financial Measures and Reconciliations:
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As of and for the three months ended As of and for the six months ended | ($ in thousands, except share and per share amounts) June 30, 2026 March 31, 2026 December 31, 2025 September 30, 2025 June 30, 2025 June 30, 2026 June 30, 2025 | Tangible stockholders’ equity to tangible assets: | Total stockholders' equity (GAAP) $ 1,837,392 $ 1,175,507 $ 1,153,356 $ 1,127,513 $ 1,095,402 $ 1,837,392 $ 1,095,402 | Less: Goodwill and other intangible assets | Goodwill (102,536 ) (93,483 ) (93,483 ) (93,483 ) (93,483 ) (102,536 ) (93,483 ) | Other intangible assets (90,452 ) (4,476 ) (4,983 ) (5,650 ) (6,228 ) (90,452 ) (6,228 ) | Tangible stockholders' equity (non-GAAP) $ 1,644,404 $ 1,077,548 $ 1,054,890 $ 1,028,380 $ 995,691 $ 1,644,404 $ 995,691 | Total assets (GAAP) $ 15,717,985 $ 8,565,123 $ 8,485,162 $ 8,495,437 $ 8,435,861 $ 15,717,985 $ 8,435,861 | Less: Goodwill and other intangible assets | Goodwill (102,536 ) (93,483 ) (93,483 ) (93,483 ) (93,483 ) (102,536 ) (93,483 ) | Other intangible assets (90,452 ) (4,476 ) (4,983 ) (5,650 ) (6,228 ) (90,452 ) (6,228 ) | Tangible assets (non-GAAP) $ 15,524,997 $ 8,467,164 $ 8,386,696 $ 8,396,304 $ 8,336,150 $ 15,524,997 $ 8,336,150 | Total stockholders' equity to total assets (GAAP) 11.69 % 13.72 % 13.59 % 13.27 % 12.99 % 11.69 % 12.99 % | Less: Impact of goodwill and other intangible assets (1.10 )% (0.99 )% (1.01 )% (1.02 )% (1.05 )% (1.10 )% (1.05 )% | Tangible stockholders' equity to tangible assets (non-GAAP) 10.59 % 12.73 % 12.58 % 12.25 % 11.94 % 10.59 % 11.94 % | Tangible stockholders’ equity to tangible assets, reflecting net unrealized losses on HTM securities, net of tax: | Tangible stockholders' equity (non-GAAP) $ 1,644,404 $ 1,077,548 $ 1,054,890 $ 1,028,380 $ 995,691 $ 1,644,404 $ 995,691 | Less: Net unrealized losses on HTM securities, net of tax (3,553 ) (3,407 ) (3,320 ) (3,432 ) (4,238 ) (3,553 ) (4,238 ) | Tangible stockholders’ equity less net unrealized losses on HTM securities, net of tax (non-GAAP) $ 1,640,851 $ 1,074,141 $ 1,051,570 $ 1,024,948 $ 991,453 $ 1,640,851 $ 991,453 | Tangible assets (non-GAAP) $ 15,524,997 $ 8,467,164 $ 8,386,696 $ 8,396,304 $ 8,336,150 $ 15,524,997 $ 8,336,150 | Less: Net unrealized losses on HTM securities, net of tax (3,553 ) (3,407 ) (3,320 ) (3,432 ) (4,238 ) (3,553 ) (4,238 ) | Tangible assets less net unrealized losses on HTM securities, net of tax (non-GAAP) $ 15,521,444 $ 8,463,757 $ 8,383,376 $ 8,392,872 $ 8,331,912 $ 15,521,444 $ 8,331,912 | Tangible stockholders’ equity to tangible assets (non-GAAP) 10.59 % 12.73 % 12.58 % 12.25 % 11.94 % 10.59 % 11.94 % | Less: Impact of net unrealized losses on HTM securities, net of tax (0.02 )% (0.04 )% (0.04 )% (0.04 )% (0.04 )% (0.02 )% (0.04 )% | Tangible stockholders’ equity to tangible assets reflecting net unrealized losses on HTM securities, net of tax (non-GAAP) 10.57 % 12.69 % 12.54 % 12.21 % 11.90 % 10.57 % 11.90 % | Tangible book value per share: | Total stockholders' equity (GAAP) $ 1,837,392 $ 1,175,507 $ 1,153,356 $ 1,127,513 $ 1,095,402 $ 1,837,392 $ 1,095,402 | Tangible stockholders' equity (non-GAAP) 1,644,404 1,077,548 1,054,890 1,028,380 995,691 $ 1,644,404 $ 995,691 | Total shares outstanding 46,765,434 27,935,888 27,887,337 27,854,764 27,834,525 46,765,434 27,834,525 | Book value per share (GAAP) $ 39.29 $ 42.08 $ 41.36 $ 40.48 $ 39.35 $ 39.29 $ 39.35 | Tangible book value per share (non-GAAP) $ 35.16 $ 38.57 $ 37.83 $ 36.92 $ 35.77 $ 35.16 $ 35.77 | Adjusted net income: | Net (loss) income (GAAP) $ (22,850 ) $ 21,583 $ 24,807 $ 23,174 $ 26,386 $ (1,267 ) $ 49,955 | Add: Adjustments | Merger related expenses, net of tax 43,871 2,090 2,116 238 215 45,961 215 | Total adjustments, net of tax 43,871 2,090 2,116 238 215 45,961 215 | Adjusted net income (non-GAAP) $ 21,021 $ 23,673 $ 26,923 $ 23,412 $ 26,601 $ 44,694 $ 50,170 | Adjusted diluted earnings per share: | Diluted (loss) earnings per share (GAAP) $ (0.49 ) $ 0.76 $ 0.88 $ 0.82 $ 0.93 $ (0.03 ) $ 1.77 | Add: Impact of adjustments | Merger related expenses, net of tax 0.94 0.08 0.07 0.01 0.01 1.23 0.01 | Adjusted diluted earnings per share (non-GAAP) $ 0.45 $ 0.84 $ 0.95 $ 0.83 $ 0.94 $ 1.20 $ 1.78 | Adjusted return on average total assets: | Return on average total assets (ROAA) (GAAP) (0.54 )% 1.04 % 1.17 % 1.09 % 1.28 % (0.02 )% 1.24 % | Add: Impact of adjustments | Merger related expenses, net of tax 1.04 % 0.10 % 0.10 % 0.01 % 0.01 % 0.73 % 0.01 % | Adjusted ROAA (non-GAAP) 0.50 % 1.14 % 1.27 % 1.10 % 1.29 % 0.71 % 1.25 % | Adjusted return on average stockholders’ equity: | Return on average stockholders' equity (ROAE) (GAAP) (4.92 )% 7.47 % 8.58 % 8.22 % 9.74 % (0.17 )% 9.39 % | Add: Impact of adjustments | Merger related expenses, net of tax 9.44 % 0.73 % 0.73 % 0.09 % 0.08 % 6.10 % 0.04 % | Adjusted ROAE (non-GAAP) 4.52 % 8.20 % 9.31 % 8.31 % 9.82 % 5.93 % 9.43 % | Return on average tangible stockholders’ equity | Return on average stockholders’ equity (ROAE) (GAAP) (4.92 )% 7.47 % 8.58 % 8.22 % 9.74 % (0.17 )% 9.39 % | Add: Impact from goodwill and other intangible assets | Goodwill (0.57 )% 0.69 % 0.81 % 0.81 % 0.98 % (0.02 )% 0.97 % | Other intangible assets 0.80 % 0.15 % 0.19 % 0.17 % 0.19 % 0.55 % 0.19 % | Return on average tangible stockholders’ equity (ROATE) (non-GAAP) (4.69 )% 8.31 % 9.58 % 9.20 % 10.91 % 0.36 % 10.55 % | Adjusted return on average tangible stockholders’ equity: | Return on average tangible stockholders' equity (ROATE) (non-GAAP) (4.69 )% 8.31 % 9.58 % 9.20 % 10.91 % 0.36 % 10.55 % | Add: Impact of adjustments | Merger related expenses, net of tax 10.55 % 0.79 % 0.80 % 0.10 % 0.09 % 6.75 % 0.04 % | Adjusted ROATE (non-GAAP) 5.86 % 9.10 % 10.38 % 9.30 % 11.00 % 7.12 % 10.60 % | Adjusted total noninterest expense: | Total noninterest expense (GAAP) $ 171,712 $ 75,341 $ 72,041 $ 68,901 $ 68,110 $ 247,053 $ 130,832 | Less: Adjustments: | Merger related expenses (57,559 ) (2,681 ) (2,217 ) (241 ) (285 ) (60,240 ) (285 ) | Total adjustments (57,559 ) (2,681 ) (2,217 ) (241 ) (285 ) (60,240 ) (285 ) | Adjusted total noninterest expense (non-GAAP) $ 114,153 $ 72,660 $ 69,824 $ 68,660 $ 67,825 $ 186,813 $ 130,547 | Adjusted efficiency ratio: | Efficiency ratio (GAAP) 93.25 % 68.52 % 65.37 % 64.22 % 64.52 % 84.00 % 64.84 % | Less: Impact of adjustments | Merger related expenses (31.26 )% (2.44 )% (2.01 )% (0.22 )% (0.27 )% (20.48 )% (0.14 )% | Adjusted efficiency ratio (non-GAAP) 61.99 % 66.08 % 63.36 % 64.00 % 64.25 % 63.52 % 64.70 % | Fully tax equivalent (“FTE”) net interest income and net interest margin: | Net interest income (GAAP) $ 143,195 $ 82,779 $ 83,461 $ 80,953 $ 78,499 $ 225,974 $ 152,977 | Gross income effect of tax exempt income 2,198 1,198 1,156 1,225 1,204 3,396 2,396 | FTE net interest income (non-GAAP) $ 145,393 $ 83,977 $ 84,617 $ 82,178 $ 79,703 $ 229,370 $ 155,373 | Average earning assets $ 16,031,868 $ 7,900,665 $ 7,916,085 $ 7,888,042 $ 7,727,556 $ 11,988,729 $ 7,576,307 | Net interest margin 3.58 % 4.25 % 4.18 % 4.07 % 4.07 % 3.80 % 4.07 % | Net interest margin on FTE basis (non-GAAP) 3.63 % 4.31 % 4.23 % 4.12 % 4.13 % 3.85 % 4.13 % | Adjusted loan growth | Total loans (GAAP) $ 11,568,443 $ 6,939,972 $ 6,673,180 $ 6,681,629 $ 6,507,066 $ 11,568,443 $ 6,507,066 | Less: Acquired loans at date of merger, net of purchase accounting discounts (6,068,491 ) — — — — (6,068,491 ) — | Add: Loans downsized 1,334,483 — — — — 1,334,483 — | Total loans, excluding acquired loans, net of downsizing (non-GAAP) $ 6,834,435 $ 6,939,972 $ 6,673,180 $ 6,681,629 $ 6,507,066 $ 6,834,435 $ 6,507,066 | Adjusted deposit growth | Total deposits (GAAP) $ 13,418,004 $ 7,087,513 $ 7,107,356 $ 7,105,415 $ 7,100,164 $ 13,418,004 $ 7,100,164 | Less: Acquired deposits at date of merger, net of purchase accounting discounts (8,772,082 ) — — — — (8,772,082 ) — | Add: Deposits downsized 2,525,448 — — — — 2,525,448 — | Total deposits, excluding acquired deposits, net of downsizing (non-GAAP) $ 7,171,370 $ 7,087,513 $ 7,107,356 $ 7,105,415 $ 7,100,164 $ 7,171,370 $ 7,100,164 |
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