First Quarter 2024 Highlights:
- Net income of $12.3 million, $0.45 per diluted share (excluding
merger costs, $14.6 million, $0.53 per diluted share, see the
“Non-GAAP Financial Measures and Reconciliations” below)
- Net interest margin of 3.99%
- Return on average total assets of 0.64% (excluding merger
costs, 0.76%, see the “Non-GAAP Financial Measures and
Reconciliations” below)
- Return on average stockholders’ equity of 5.15% (excluding
merger costs, 6.11%, see the “Non-GAAP Financial Measures and
Reconciliations” below)
- Loan growth of 1.1% annualized
- Deposit growth of 4.5% annualized
- 24.4% noninterest income to total revenue1
FirstSun Capital Bancorp (“FirstSun”) (OTCQX: FSUN) reported net
income of $12.3 million for the first quarter of 2024 compared to
net income of $26.3 million for the first quarter of 2023. Earnings
per diluted share were $0.45 for the first quarter of 2024 compared
to $1.03 for the first quarter of 2023. Earnings for the first
quarter of 2024 were negatively impacted by $2.3 million of merger
costs, net of tax, or $0.08 per diluted share and a $13.1 million
loan charge-off, net of tax, or $0.47 per diluted share.
Neal Arnold, FirstSun’s President and Chief Executive Officer,
commented, “Our core business remains strong in this difficult
banking environment and while we experienced a decline in our
results this quarter due to an individual and isolated loan
charge-off, we are pleased to have the flexibility to continue to
expand our franchise in important markets. Our net interest margin
remains very strong at 3.99% this quarter and our overall earnings
continue to be favorably impacted by our well diversified business
mix, including the balanced level of noninterest income to total
revenue at 24.4%.
“We are also pleased to announce that we have onboarded a new
C&I banking team in Southern California. We are very excited
about the opportunity to grow our clients and business
relationships with the entry into the key markets of Southern
California. The experience and the relationships of this new
C&I team provide for significant expansion of all our lines of
business in this large and diverse region.”
First Quarter 2024 Results
Net income totaled $12.3 million, or $0.45 per diluted share,
during the first quarter of 2024, compared to $24.0 million, or
$0.94 per diluted share, during the prior quarter. Net income in
the first quarter of 2024 included $2.3 million in merger costs,
net of tax. The return on average total assets was 0.64% in the
first quarter of 2024, compared to 1.26% in the prior quarter, and
the return on average stockholders’ equity was 5.15% in the first
quarter of 2024, compared to 11.19% in the prior quarter. First
quarter 2024 merger costs negatively affected return on average
total assets by 0.12% and return on average stockholders’ equity by
0.96%.
As previously announced, concurrent with the entry into the
merger agreement with HomeStreet, Inc. (“HomeStreet”) on January
16, 2024, we entered into an upfront securities purchase agreement
with certain funds managed by Wellington Management Company, LLP,
pursuant to which we issued 2,461,538 shares of our common stock in
a private placement for $80.0 million that closed on January 17,
2024.
Net Interest Income and Net Interest Margin
Net interest income totaled $70.8 million during the first
quarter of 2024, a decrease of $1.3 million compared to the prior
quarter. Our net interest margin decreased nine basis points to
3.99% compared to the prior quarter. Results in the first quarter
of 2024, compared to the prior quarter, were driven by an increase
of nine basis points in the cost of interest-bearing liabilities
and a decrease of two basis points in yield on earning assets.
Average loans, including loans held-for-sale, increased by $33.5
million in the first quarter of 2024, compared to the prior
quarter. Loan yield decreased by three basis points to 6.48% in the
first quarter of 2024, compared to the prior quarter. Loan yield
was relatively unchanged as our portfolio mix has remained largely
the same. Average interest-bearing deposits decreased $8.0 million
in the first quarter of 2024, compared to the prior quarter. Total
cost of interest-bearing deposits increased by seven basis points
to 3.00% in the first quarter of 2024, compared to the prior
quarter, primarily due to overall rising deposit costs as a result
of the elevated interest rate environment. Average FHLB borrowings
increased $36.6 million in the first quarter of 2024, compared to
the prior quarter. The cost of FHLB borrowings decreased by eight
basis points to 5.56% in the first quarter of 2024, compared to the
prior quarter.
Asset Quality and Provision for Credit Losses
The provision for credit losses totaled $16.5 million during the
first quarter of 2024, an increase of $9.9 million from $6.6
million in the prior quarter, primarily due to a $17.4 million
charge-off on a specific customer in our C&I loan
portfolio.
Net charge-offs during the first quarter of 2024 were $17.4
million resulting in an annualized ratio of net charge-offs to
average loans of 1.11%, compared to net charge-offs of $4.7
million, or an annualized ratio of net-charge offs to average loans
of 0.30% in the prior quarter. The allowance for credit losses as a
percentage of total loans was 1.27% at March 31, 2024, a decrease
of one basis point from the prior quarter.
The ratio of nonperforming assets to total assets was 0.80% at
March 31, 2024, compared to 0.85% at December 31, 2023.
Noninterest Income
Noninterest income totaled $22.8 million during the first
quarter of 2024, an increase of $5.6 million from the prior
quarter. Mortgage banking income increased $4.6 million during the
first quarter of 2024, primarily due to an increase in revenue
related to net sale gains and fees from mortgage loan originations,
including fair value changes in the held-for-sale portfolio and
hedging activity, which increased $2.1 million from the prior
quarter, and an improvement of $2.4 million in the change in fair
value of our MSR asset, net of hedging activity, as compared to the
prior quarter.
Other noninterest income increased $0.8 million during the first
quarter of 2024, primarily due to an increase in income from BOLI
and an increase in the fair value of customer loan swaps.
Noninterest income as a percentage of total revenue2 was 24.4%, an
increase of 5.1% from the prior quarter.
Noninterest Expense
Noninterest expense totaled $61.8 million during the first
quarter of 2024, an increase of $9.5 million from the prior
quarter, primarily due to an increase in salary and employee
benefits of $7.2 million as a result of higher levels of variable
compensation and an increase in payroll taxes. Noninterest expense
for the first quarter of 2024 included $2.5 million in merger
related expenses. There were no merger related expenses in the
prior quarter.
The efficiency ratio for the first quarter of 2024 was 66.05%
compared to 58.58% in the prior quarter. The negative impact in the
first quarter of 2024 of merger costs to the efficiency ratio was
2.66%.
Tax Rate
The effective tax rate was 19.6% in the first quarter of 2024,
compared to 21.0% in the prior quarter.
Loans
Loans were $6.3 billion at March 31, 2024 and December 31, 2023,
increasing $17.8 million in the first quarter of 2024, or 1.1% on
an annualized basis.
Deposits
Deposits were $6.45 billion at March 31, 2024 compared to $6.37
billion at December 31, 2023, an increase of $71.3 million in the
first quarter of 2024, or 4.5% on an annualized basis. Average
deposits were $6.35 billion for the first quarter of 2024, compared
to $6.46 billion for the prior quarter, a decrease of $103.0
million in the first quarter of 2024, or 6.4% on an annualized
basis. Noninterest-bearing deposit accounts represented 23.5% of
total deposits at March 31, 2024 and the loan-to-deposit ratio was
97.5% at March 31, 2024.
The ratio of total uninsured deposits to total deposits was
estimated to be 32.0% at March 31, 2024, compared to 31.2% at
December 31, 2023. The ratio of total uninsured and
uncollateralized deposits to total deposits was estimated to be
25.2% at March 31, 2024, compared to 25.1% at December 31,
2023.3
Capital
Capital ratios remain strong and above “well-capitalized”
thresholds. As of March 31, 2024, our common equity tier 1
risk-based capital ratio was 12.54%, total risk-based capital ratio
was 14.73% and tier 1 leverage ratio was 11.73%. Book value per
common share was $35.15 at March 31, 2024, an increase of $0.01
from December 31, 2023. Tangible book value per common share, a
non-GAAP financial measure, was $31.37 at March 31, 2024, an
increase of $0.41 from December 31, 2023.
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
principles generally accepted in the United States (“GAAP”).
FirstSun management uses these non-GAAP financial measures in their
analysis of FirstSun’s performance and the efficiency of its
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. FirstSun believes a
meaningful analysis of its financial performance requires an
understanding of the factors underlying that performance. FirstSun
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 common stockholders’ equity;
- Tangible assets;
- Tangible common stockholders’ equity to tangible assets;
- Tangible common stockholders’ equity to tangible assets,
reflecting net unrealized losses on HTM securities, net of
tax;
- Tangible book value per common share;
- Net income excluding merger costs;
- Return on average total assets excluding merger costs;
- Return on average stockholders’ equity excluding merger
costs;
- Efficiency ratio excluding merger related expenses;
- Diluted earnings per share excluding merger related costs;
and
- Fully tax equivalent (“FTE”) net interest income and net
interest margin on FTE basis.
The tables beginning within the “Non-GAAP Financial Measures and
Reconciliations” section provide a reconciliation of each non-GAAP
financial measure contained in this press release to the most
comparable GAAP equivalent.
Subsequent Event
As announced and further described in a separate press release
jointly issued by FirstSun and HomeStreet today, FirstSun and
HomeStreet have entered into an amendment to their merger
agreement.
About FirstSun Capital Bancorp
FirstSun Capital Bancorp, headquartered in Denver, Colorado, is
the financial holding company for Sunflower Bank, N.A., which
operates as Sunflower Bank, First National 1870 and Guardian
Mortgage. Sunflower Bank provides a full range of
relationship-focused services to meet personal, business and wealth
management financial objectives, with a branch network in five
states and mortgage capabilities in 43 states. FirstSun had total
consolidated assets of $7.8 billion as of March 31, 2024.
First National 1870 and Guardian Mortgage are divisions of
Sunflower Bank, N.A. To learn more, visit ir.firstsuncb.com,
SunflowerBank.com, FirstNational1870.com or
GuardianMortgageOnline.com.
____________________
1 Total revenue is net interest income plus noninterest income.
2 Total revenue is net interest income plus noninterest income. 3
Uninsured deposits and uninsured and uncollateralized deposits are
reported for our wholly-owned subsidiary Sunflower Bank, N.A.
Summary Data:
As of and for the quarter
ended
($ in thousands, except per share
amounts)
March 31, 2024
December 31, 2023
March 31, 2023
Net interest income
$
70,806
$
72,069
$
74,117
Provision for credit losses
16,500
6,575
3,360
Noninterest income
22,808
17,221
18,931
Noninterest expense
61,828
52,308
56,266
Income before income taxes
15,286
30,407
33,422
Provision for income taxes
2,990
6,393
7,141
Net income
12,296
24,014
26,281
Net income, excluding merger costs (1)
14,592
24,014
26,281
Diluted earnings per share
$
0.45
$
0.94
$
1.03
Diluted earnings per share, excluding
merger costs (1)
$
0.53
$
0.94
$
1.03
Return on average total assets
0.64
%
1.26
%
1.44
%
Return on average total assets, excluding
merger costs (1)
0.76
%
1.26
%
1.44
%
Return on average stockholders' equity
5.15
%
11.19
%
13.37
%
Return on average stockholders’ equity,
excluding merger costs (1)
6.11
%
11.19
%
13.37
%
Net interest margin
3.99
%
4.08
%
4.39
%
Net interest margin (FTE basis) (1)
4.06
%
4.15
%
4.46
%
Efficiency ratio
66.05
%
58.58
%
60.47
%
Efficiency ratio, excluding merger related
expenses (1)
63.39
%
58.58
%
60.47
%
Noninterest income to total revenue
(2)
24.4
%
19.3
%
20.3
%
Total assets
$
7,781,601
$
7,879,724
$
7,610,456
Total loans held-for-sale
56,813
54,212
66,255
Total loans held-for-investment
6,284,868
6,267,096
6,060,975
Total deposits
6,445,388
6,374,103
5,994,266
Total stockholders' equity
964,662
877,197
799,050
Loan to deposit ratio
97.5
%
98.3
%
101.1
%
Book value per common share
$
35.15
$
35.14
$
32.06
Tangible book value per common share
(1)
$
31.37
$
30.96
$
27.72
(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):
As of and for the quarter
ended
($ in thousands, except per share
amounts)
March 31,
2024
December 31,
2023
March 31,
2023
Total interest income
$
110,040
$
109,974
$
94,903
Total interest expense
39,234
37,905
20,786
Net interest income
70,806
72,069
74,117
Provision for credit losses
16,500
6,575
3,360
Net interest income after provision for
credit losses
54,306
65,494
70,757
Noninterest income:
Service charges on deposits
5,768
5,497
5,015
Credit and debit card fees
2,803
2,966
2,981
Trust and investment advisory fees
1,463
1,356
1,461
Mortgage banking income, net
9,502
4,883
7,429
Other noninterest income
3,272
2,519
2,045
Total noninterest income
22,808
17,221
18,931
Noninterest expense:
Salaries and benefits
37,353
30,158
35,049
Occupancy and equipment
8,595
8,449
8,355
Amortization of intangible assets
815
829
1,044
Merger related expenses
2,489
—
—
Other noninterest expenses
12,576
12,872
11,818
Total noninterest expense
61,828
52,308
56,266
Income before income taxes
15,286
30,407
33,422
Provision for income taxes
2,990
6,393
7,141
Net income
$
12,296
$
24,014
$
26,281
Earnings per share - basic
$
0.46
$
0.96
$
1.05
Earnings per share - diluted
$
0.45
$
0.94
$
1.03
Condensed Consolidated Balance Sheets
as of (Unaudited):
($ in thousands)
March 31,
2024
December 31,
2023
March 31,
2023
Assets
Cash and cash equivalents
$
383,605
$
479,362
$
388,349
Securities available-for-sale, at fair
value
499,078
516,757
532,650
Securities held-to-maturity
36,640
36,983
38,470
Loans held-for-sale, at fair value
56,813
54,212
66,255
Loans
6,284,868
6,267,096
6,060,975
Allowance for credit losses
(79,829
)
(80,398
)
(74,459
)
Loans, net
6,205,039
6,186,698
5,986,516
Mortgage servicing rights, at fair
value
78,416
76,701
73,424
Premises and equipment, net
84,063
84,842
86,430
Other real estate owned and foreclosed
assets, net
4,414
4,100
6,358
Goodwill
93,483
93,483
93,483
Intangible assets, net
10,168
10,984
14,762
All other assets
329,882
335,602
323,759
Total assets
$
7,781,601
$
7,879,724
$
7,610,456
Liabilities and Stockholders'
Equity
Liabilities:
Deposits:
Noninterest-bearing demand deposit
accounts
$
1,517,315
$
1,530,506
$
1,764,440
Interest-bearing deposit accounts:
Interest-bearing demand accounts
542,184
534,540
238,658
Savings and money market accounts
2,473,255
2,446,632
2,705,315
NOW accounts
39,181
56,819
45,192
Certificate of deposit accounts
1,873,453
1,805,606
1,240,661
Total deposits
6,445,388
6,374,103
5,994,266
Securities sold under agreements to
repurchase
20,423
24,693
31,645
Federal Home Loan Bank advances
144,810
389,468
577,285
Other borrowings
75,445
75,313
80,373
Other liabilities
130,873
138,950
127,837
Total liabilities
6,816,939
7,002,527
6,811,406
Stockholders' equity:
Preferred stock
—
—
—
Common stock
3
2
2
Additional paid-in capital
542,582
462,680
461,174
Retained earnings
469,818
457,522
380,270
Accumulated other comprehensive loss,
net
(47,741
)
(43,007
)
(42,396
)
Total stockholders' equity
964,662
877,197
799,050
Total liabilities and stockholders'
equity
$
7,781,601
$
7,879,724
$
7,610,456
Share Data:
As of and for the quarter
ended
March 31, 2024
December 31, 2023
March 31, 2023
Weighted average common shares
outstanding, basic
27,019,625
24,953,764
24,923,259
Weighted average common shares
outstanding, diluted
27,628,941
25,472,017
25,487,582
Period end common shares outstanding
27,442,943
24,960,639
24,924,023
Book value per common share
$
35.15
$
35.14
$
32.06
Tangible book value per common share
(1)
$
31.37
$
30.96
$
27.72
(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.
Consolidated Capital Ratios as
of:
March 31,
2024
December 31,
2023
March 31,
2023
Stockholders' equity to total assets
12.40
%
11.13
%
10.50
%
Tangible common stockholders' equity to
tangible assets (1)
11.21
%
9.94
%
9.21
%
Tangible common stockholders' equity to
tangible assets reflecting net unrealized losses on HTM securities,
net of tax (1) (2)
11.17
%
9.90
%
9.16
%
Tier 1 leverage ratio
11.73
%
10.52
%
9.86
%
Common equity tier 1 risk-based capital
ratio
12.54
%
11.10
%
10.11
%
Tier 1 risk-based capital ratio
12.54
%
11.10
%
10.11
%
Total risk-based capital ratio
14.73
%
13.25
%
12.19
%
(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 common 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:
For the quarter ended
March 31, 2024
For the quarter ended
December 31, 2023
For the quarter ended
March 31, 2023
(In thousands)
Average
Balance
Interest
Average
Yield/Rate
Average
Balance
Interest
Average
Yield/Rate
Average
Balance
Interest
Average
Yield/Rate
Interest Earning Assets
Loans (1)
6,313,855
102,268
6.48
%
6,280,362
102,151
6.51
%
6,028,989
88,601
5.88
%
Investment securities
546,960
4,487
3.28
%
538,348
4,415
3.28
%
570,682
4,164
2.92
%
Interest-bearing cash and other assets
239,508
3,285
5.49
%
247,978
3,408
5.50
%
156,262
2,138
5.47
%
Total earning assets
7,100,323
110,040
6.20
%
7,066,688
109,974
6.22
%
6,755,933
94,903
5.62
%
Other assets
548,642
563,368
553,961
Total assets
$
7,648,965
$
7,630,056
$
7,309,894
Interest-bearing liabilities
Demand and NOW deposits
$
549,491
$
4,861
3.54
%
$
510,982
$
4,403
3.45
%
$
227,170
$
1,234
2.17
%
Savings deposits
421,882
725
0.69
%
457,679
1,060
0.93
%
470,000
445
0.38
%
Money market deposits
2,063,321
9,946
1.93
%
2,063,383
9,362
1.82
%
2,296,469
5,068
0.88
%
Certificates of deposits
1,814,629
20,858
4.60
%
1,825,325
20,726
4.54
%
1,073,006
7,432
2.77
%
Total deposits
4,849,323
36,390
3.00
%
4,857,369
35,551
2.93
%
4,066,645
14,179
1.39
%
Repurchase agreements
21,254
57
1.06
%
23,457
62
1.06
%
29,672
30
0.41
%
Total deposits and repurchase
agreements
4,870,577
36,447
2.99
%
4,880,826
35,613
2.92
%
4,096,317
14,209
1.39
%
FHLB borrowings
110,777
1,541
5.56
%
74,146
1,045
5.64
%
454,081
5,317
4.68
%
Other long-term borrowings
75,389
1,246
6.62
%
75,249
1,247
6.62
%
80,300
1,260
6.28
%
Total interest-bearing liabilities
5,056,743
39,234
3.10
%
5,030,221
37,905
3.01
%
4,630,698
20,786
1.80
%
Noninterest-bearing deposits
1,502,707
1,597,672
1,768,381
Other liabilities
134,370
143,416
124,543
Stockholders' equity
955,145
858,747
786,272
Total liabilities and stockholders'
equity
$
7,648,965
$
7,630,056
$
7,309,894
Net interest income
$
70,806
$
72,069
$
74,117
Net interest spread
3.10
%
3.21
%
3.82
%
Net interest margin
3.99
%
4.08
%
4.39
%
Net interest margin (on FTE basis) (2)
4.06
%
4.15
%
4.46
%
(1)
Includes loans held-for-investment,
including nonaccrual loans, and loans held-for-sale.
(2)
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.
Deposits:
($ in thousands)
March 31,
2024
December 31,
2023
March 31,
2024
vs
December 31,
2023
% change
March 31,
2023
March 31,
2024
vs
March 31,
2023
% change
Consumer
Noninterest bearing deposit accounts
$
356,732
$
360,168
(0.95
)%
$
399,008
(10.60
)%
Interest-bearing deposit accounts:
Demand and NOW deposits
38,625
36,162
6.81
%
25,284
52.76
%
Savings deposits
340,086
343,291
(0.93
)%
407,173
(16.48
)%
Money market deposits
1,229,239
1,196,645
2.72
%
1,296,099
(5.16
)%
Certificates of deposits
1,437,590
1,437,537
—
%
759,726
89.22
%
Total interest-bearing deposit
accounts
3,045,540
3,013,635
1.06
%
2,488,282
22.40
%
Total consumer deposits
$
3,402,272
$
3,373,803
0.84
%
$
2,887,290
17.84
%
Business
Noninterest bearing deposit accounts
$
1,160,583
$
1,170,338
(0.83
)%
$
1,365,432
(15.00
)%
Interest-bearing deposit accounts:
Demand and NOW deposits
502,726
555,197
(9.45
)%
258,566
94.43
%
Savings deposits
80,226
80,802
(0.71
)%
34,229
134.38
%
Money market deposits
823,704
825,811
(0.26
)%
942,735
(12.63
)%
Certificates of deposits
97,854
87,407
11.95
%
62,248
57.20
%
Total interest-bearing deposit
accounts
1,504,510
1,549,217
(2.89
)%
1,297,778
15.93
%
Total business deposits
$
2,665,093
$
2,719,555
(2.00
)%
$
2,663,210
0.07
%
Wholesale
deposits (1)
$
378,023
$
280,745
34.65
%
$
443,766
(14.81
)%
Total deposits
$
6,445,388
$
6,374,103
1.12
%
$
5,994,266
7.53
%
(1)
Wholesale deposits primarily consist of
brokered deposits included in our condensed consolidated balance
sheets within certificates of deposits.
Balance Sheet Ratios:
March 31,
2024
December 31,
2023
March 31,
2023
Cash to total assets (1)
4.80
%
6.00
%
4.60
%
Loan to deposit ratio
97.5
%
98.3
%
101.1
%
Uninsured deposits to total deposits
(2)
32.0
%
31.2
%
35.8
%
Uninsured and uncollateralized deposits to
total deposits (2)
25.2
%
25.1
%
26.4
%
Wholesale deposits and borrowings to total
liabilities (3)
7.7
%
9.6
%
15.0
%
(1)
Cash consists of 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 deposits. Wholesale borrowings
consist of FHLB overnight and term advances.
Loan Portfolio:
($ in thousands)
March 31,
2024
December 31,
2023
March 31,
2024
vs
December 31,
2023
% change
March 31,
2023
March 31,
2024
vs
March 31,
2023
% change
Commercial and industrial
$
2,480,078
$
2,467,688
0.5
%
$
2,418,771
2.5
%
Commercial real estate:
Non-owner occupied
836,515
812,235
3.0
%
709,977
17.8
%
Owner occupied
642,930
635,365
1.2
%
659,999
(2.6
)%
Construction and land
326,447
345,430
(5.5
)%
320,193
2.0
%
Multifamily
94,898
103,066
(7.9
)%
103,767
(8.5
)%
Total commercial real estate
1,900,790
1,896,096
0.2
%
1,793,936
6.0
%
Residential real estate
1,109,676
1,110,610
(0.1
)%
1,046,047
6.1
%
Public Finance
579,991
602,913
(3.8
)%
597,850
(3.0
)%
Consumer
40,317
36,371
10.8
%
40,806
(1.2
)%
Other
174,016
153,418
13.4
%
163,565
6.4
%
Total loans, net of deferred costs, fees,
premiums, and discounts
$
6,284,868
$
6,267,096
0.3
%
$
6,060,975
3.7
%
Asset Quality:
As of and for the quarter
ended
($ in thousands)
March 31,
2024
December 31,
2023
March 31,
2023
Net charge-offs (recoveries)
$
17,429
$
4,743
$
54
Allowance for credit losses
$
79,829
$
80,398
$
74,459
Nonperforming loans, including nonaccrual
loans, and accrual loans greater than 90 days past due
$
57,599
$
63,143
$
32,833
Nonperforming assets
$
62,013
$
67,243
$
39,191
Ratio of net charge-offs (recoveries) to
average loans outstanding
1.11
%
0.30
%
—
%
Allowance for credit losses to total loans
outstanding
1.27
%
1.28
%
1.23
%
Allowance for credit losses to total
nonperforming loans
138.59
%
127.33
%
226.78
%
Nonperforming loans to total loans
0.92
%
1.01
%
0.54
%
Nonperforming assets to total assets
0.80
%
0.85
%
0.51
%
Non-GAAP Financial Measures and Reconciliations:
As of and for the quarter
ended
($ in thousands, except share and per
share amounts)
March 31, 2024
December 31,
2023
March 31, 2023
Tangible common stockholders’ equity:
Total common stockholders' equity
(GAAP)
$
964,662
$
877,197
$
799,050
Less: Goodwill and other intangible
assets:
Goodwill
(93,483
)
(93,483
)
(93,483
)
Other intangible assets
(10,168
)
(10,984
)
(14,762
)
Total tangible common stockholders' equity
(non-GAAP) (1)
$
861,011
$
772,730
$
690,805
Tangible assets:
Total assets (GAAP)
$
7,781,601
$
7,879,724
$
7,610,456
Less: Goodwill and other intangible
assets:
Goodwill
(93,483
)
(93,483
)
(93,483
)
Other intangible assets
(10,168
)
(10,984
)
(14,762
)
Total tangible assets (non-GAAP)
$
7,677,950
$
7,775,257
$
7,502,211
Tangible common stockholders’ equity to
tangible assets:
Common stockholders' equity to total
assets (GAAP)
12.40
%
11.13
%
10.50
%
Less: Impact of goodwill and other
intangible assets
(1.19
)%
(1.19
)%
(1.29
)%
Tangible common stockholders' equity to
tangible assets (non-GAAP) (1)
11.21
%
9.94
%
9.21
%
Tangible common stockholders’ equity to
tangible assets, reflecting net unrealized losses on HTM
securities, net of tax:
Total tangible common stockholders' equity
(non-GAAP)
$
861,011
$
772,730
$
690,805
Less: Net unrealized losses on HTM
securities, net of tax
(4,236
)
(3,629
)
(3,754
)
Total tangible common stockholders’ equity
less net unrealized losses on HTM securities, net of tax
(non-GAAP)
$
856,775
$
769,101
$
687,051
Total tangible assets (non-GAAP)
$
7,677,950
$
7,775,257
$
7,502,211
Less: Net unrealized losses on HTM
securities, net of tax
(4,236
)
(3,629
)
(3,754
)
Total tangible assets less net unrealized
losses on HTM securities, net of tax (non-GAAP)
$
7,673,714
$
7,771,628
$
7,498,457
Tangible common stockholders’ equity to
tangible assets (non-GAAP)
11.21
%
9.94
%
9.21
%
Less: Net unrealized losses on HTM
securities, net of tax
(0.04
)%
(0.04
)%
(0.05
)%
Tangible common stockholders’ equity to
tangible assets reflecting net unrealized losses on HTM securities,
net of tax (non-GAAP)
11.17
%
9.90
%
9.16
%
Tangible book value per common share:
Stockholders' equity (GAAP)
$
964,662
$
877,197
$
799,050
Tangible stockholders' equity (non-GAAP)
(1)
$
861,011
$
772,730
$
690,805
Total common shares outstanding
27,442,943
24,960,639
24,924,023
Book value per common share (GAAP)
$
35.15
$
35.14
$
32.06
Tangible book value per common share
(non-GAAP)
$
31.37
$
30.96
$
27.72
Net income excluding merger costs:
Net income (GAAP)
$
12,296
$
24,014
$
26,281
Add: Merger costs
Merger related expenses
2,489
—
—
Income tax effect on merger related
expenses
(193
)
—
—
Total merger costs
2,296
—
—
Net income excluding merger costs
(non-GAAP)
$
14,592
$
24,014
$
26,281
Return on average total assets excluding
merger costs:
Return on average total assets (ROAA)
(GAAP)
0.64
%
1.26
%
1.44
%
Add: Impact of merger costs, net of
tax
0.12
%
—
%
—
%
ROAA excluding merger costs (non-GAAP)
0.76
%
1.26
%
1.44
%
Return on average stockholders’ equity
excluding merger costs:
Return on average stockholders' equity
(ROAE) (GAAP)
5.15
%
11.19
%
13.37
%
Add: Impact of merger costs, net of
tax
0.96
%
—
%
—
%
ROAE excluding merger costs (non-GAAP)
6.11
%
11.19
%
13.37
%
Efficiency ratio excluding merger related
expenses:
Efficiency ratio (GAAP)
66.05
%
58.58
%
60.47
%
Less: Impact of merger related
expenses
(2.66
)%
—
%
—
%
Efficiency ratio excluding merger related
expenses (non-GAAP)
63.39
%
58.58
%
60.47
%
Diluted earnings per share excluding
merger costs:
Diluted earnings per share (GAAP)
$
0.45
$
0.94
$
1.03
Add: Impact of merger costs, net of
tax
0.08
—
—
Diluted earnings per share excluding
merger costs (non-GAAP)
$
0.53
$
0.94
$
1.03
Fully tax equivalent (“FTE”) net interest
income and net interest margin on FTE basis:
Net interest income (GAAP)
$
70,806
$
72,069
$
74,117
Gross income effect of tax exempt
income
1,318
1,270
1,242
FTE net interest income (non-GAAP)
$
72,124
$
73,339
$
75,359
Average earning assets
$
7,100,323
$
7,066,688
$
6,755,933
Net interest margin
3.99
%
4.08
%
4.39
%
Net interest margin on FTE basis
(non-GAAP)
4.06
%
4.15
%
4.46
%
(1)
For all periods presented tangible
stockholders’ equity is the same as tangible common stockholders’
equity.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240425525552/en/
Investor Relations: Kelly C. Rackley Corporate Secretary
& Stockholder Relations Manager 303.962.0150 |
stockholder.relations@sunflowerbank.com