FIRSTSUN CAPITAL BANCORP

The following table sets forth components of our results of operations:

General

Our results of operations depend significantly on net interest income, which is the difference between interest income on interest-earning assets, consisting primarily of interest income on loans and investment securities and interest expense on interest-bearing liabilities, consisting primarily of deposits and borrowings. Our results of operations are also dependent on our generation of noninterest income, consisting primarily of mortgage banking services, treasury management service fees, deposit account service fees, trust and investment advisory fees and credit and debit card fees. Other factors contributing to our results of operations include our provisions for credit losses, income taxes, and noninterest expenses, such as salaries and employee benefits, occupancy, equipment and software, amortization of intangible assets and other operating costs.

Net Interest Income

Net interest income, representing interest income less interest expense, is a significant contributor to our revenues and earnings. We generate interest income from interest and dividends on interest-earning assets, which are principally comprised of loans and investment securities. We incur interest expense from interest owed or paid on interest-bearing liabilities, including interest-bearing deposits, FHLB advances and other borrowings. Net interest income and margin are shaped by the characteristics of the underlying products, including volume, term and structure of each product. We measure and monitor yields on our loans and other interest-earning assets, the costs of our deposits and other funding sources, our net interest spread and our net interest margin. Net interest spread is the difference between rates earned on interest-earning assets and rates paid on interest-bearing liabilities. Net interest margin is calculated as net interest income divided by average interest-earning assets.

Interest earned on our loan portfolio is the largest component of our interest income. Our loan portfolios are presented at the principal amount outstanding net of deferred origination fees and unamortized discounts and premiums. Interest income is recognized based on the principal balance outstanding and the stated rate of the loan. Loan origination fees and certain direct origination costs are capitalized and recognized as an adjustment of the yield on the related loan. Non-PCD loans acquired are initially recorded at fair value and the resulting discount or premium are recognized as an adjustment of the yield on the related loans.

Our net interest income can be significantly influenced by a variety of factors, including overall loan demand, economic conditions, credit risk, the amount of non-earning assets including nonperforming loans and OREO, the amounts of and rates at which assets and liabilities reprice, variances in prepayment of loans and securities, exercise of call options on borrowings or securities, a general rise or decline in interest rates, changes in the slope of the yield-curve, and balance sheet growth or contraction.

Our net interest income was $82.8 million for the first quarter of 2026, an increase of $8.3 million, or 11.1%, compared to the same period in 2025. Interest income on loans increased by $6.9 million for the first quarter of 2026, compared to the same period in 2025. Interest income on investment securities decreased by $0.3 million for the first quarter of 2026, compared to the same period in 2025. Interest income on interest-bearing cash and other assets decreased by $0.9 million for the first quarter of 2026, compared to the same period in 2025. Interest expense from total interest-bearing liabilities decreased by $2.6 million for the first quarter of 2026, compared to the same period in 2025.

Our net interest margin was 4.25% for the first quarter of 2026, compared to 4.07% for the same period in 2025, an increase of 18 basis points. We experienced a seven basis point decrease in yield from earning assets, while our total cost of interest-bearing liabilities decreased by 31 basis points for the first quarter of 2026 as compared to the same period in 2025. Total earning assets increased $0.5 billion while total interest-bearing liabilities increased $0.2 billion, for the first quarter of 2026 as compared to the same period in 2025.

Total average loans grew to $6.9 billion at March 31, 2026, an increase of $0.4 billion or 6.8%, compared to March 31, 2025, due to organic growth in our loan portfolio. Yield on loans remained unchanged for the first quarter of 2026, compared to the same period in 2025 as the impact of the declining interest rate environment and its impact on variable rate loans in the portfolio was offset by several factors including higher loan yields on new originations as compared to amortizing and maturing amounts. Interest-bearing cash and other assets increased $42.5 million, or 8.5%, for the first quarter of 2026, compared to the same period in 2025. Yield on interest-bearing cash and other assets decreased 101 basis points for the first quarter of 2026, compared to the same period in 2025, primarily due to the declining interest rate environment.

Average interest-bearing liabilities increased $0.2 billion, or 4.4%, for the first quarter of 2026, compared to the same period in 2025, primarily to support the growth in our loan portfolio. Average interest-bearing deposits increased $0.3 billion, or 5.8%, for the first quarter of 2026, compared to the same period in 2025, which included a decrease of $0.3 billion, or 22.0%, in average certificates of deposit balances. Cost of interest-bearing deposits decreased 27 basis points for the first quarter of 2026, compared to the same period in 2025, primarily due to the declining interest rate environment and change in deposit product mix, particularly the decrease in certificates of deposit balances. Average FHLB borrowings decreased $28.4 million, or 96.3%, for the first quarter of 2026, compared to the same period in 2025. Cost of FHLB borrowings decreased 148 basis points, for the first quarter of 2026, compared to the same period in 2025. Average other long-term borrowings decreased $39.2 million, or 51.6%, for the first quarter of 2026, compared to the same period in 2025. Cost of other long-term borrowings decreased 71 basis points, for the first quarter of 2026, compared to the same period in 2025.

The following table sets forth information related to our average balance sheet, average yields on assets, and average costs of liabilities for the periods presented. We derived these yields by dividing income or expense by the average balance of the corresponding assets or liabilities. We derived average balances from the daily balances throughout the periods indicated.

As of and for the three months ended March 31,:

Rate-Volume Analysis

The table below presents the effect of volume and rate changes on interest income and expense. Changes due to volume are changes in the average balance multiplied by the previous period’s average rate. Changes due to rate are changes in the average rate multiplied by the average balance from the prior period. The net changes attributable to the combined impact of both rate and volume have been allocated proportionately to the changes due to volume and the changes due to rate.

Provision for Credit Losses

We established an allowance for credit losses through a provision for credit losses charged as an expense in our consolidated statements of income. The provision for credit losses is the amount of expense that, based on our judgment, is required to maintain the allowance for credit losses at an adequate level to absorb expected losses in the loan portfolio at the balance sheet date and that, in management’s judgment, is appropriate under GAAP. Our determination of the amount of the allowance for credit losses and corresponding provision for credit losses considers ongoing evaluations of the credit quality and level of credit risk inherent in our loan portfolio, levels of nonperforming loans and charge-offs, statistical trends and economic and other relevant factors. The allowance for credit losses is increased by the provision for credit losses and is decreased by charge-offs, net of recoveries on prior loan charge-offs.

We recorded a provision for credit losses of $8.3 million for the first quarter of 2026, compared to $3.8 million for the same period in 2025. The increase in our provision for credit losses for the first quarter of 2026 was primarily due to net portfolio downgrades and impacts from growth in loan portfolio balances.

Noninterest Income

The following table presents noninterest income:

Our noninterest income increased $5.4 million to $27.2 million for the first quarter of 2026 from $21.7 million for the same period in 2025, primarily due to an increase in mortgage banking services, net.

Deposit account service fees include overdraft and non-sufficient funds charges, and other service fees. Deposit account service fees increased $0.1 million for the first quarter of 2026, compared to the same period in 2025, primarily due to an increase in non-sufficient funds and overdraft fees.

Treasury management service fees include financial information management, accounts receivable management, accounts payable services, fraud mitigation services, and cash flow management. Treasury management service fees increased $0.4 million for the first quarter of 2026 compared to the same period in 2025, primarily due to an overall increase in our business customer base as well as an increase in products and services provided to our existing customer base.

Credit and debit card fees represent interchange income from credit and debit card activity and referral fees earned from processing fees on card transactions by our business customers. Credit and debit card fees increased $0.1 million for the first quarter of 2026 compared to the same period in 2025, as card transaction volumes increased slightly.

Trust and investment advisory fees represent fees we receive in connection with our investment advisory and custodial management services of investment accounts. Trust and investment advisory fees increased $0.1 million for the first quarter of 2026 compared to the same period in 2025, as assets under management increased slightly.

The components of mortgage banking services were as follows:

For the first quarter of 2026, mortgage banking services increased $5.3 million, compared to the same period in 2025. Total loan originations for sale were $426.0 million for the first quarter of 2026, an increase of $175.0 million from $251.0 million for the same period in 2025. The increase in loan originations sold resulted in the increase in revenue related to net sale gains and fees from loan originations, including fair value changes in the held-for-sale portfolio and hedging activity. We retain servicing rights on the majority of mortgage loans that we sell, which drove the increase in servicing income of $0.5 million to $5.0 million for the first quarter of 2026, from $4.5 million for the same period in 2025. Net MSR capitalization and changes in fair value, net of derivative activity, increased $1.0 million in the first quarter of 2026, compared to the same period in 2025. The increase in revenue related to our MSRs was due to higher net MSR capitalization.

The following table shows the hypothetical effect on the fair value of our MSRs when applying certain unfavorable variations of key assumptions to these assets as of March 31, 2026.

These hypothetical sensitivities should be evaluated with care. The effect on fair value of an adverse change in assumptions generally cannot be determined because the relationship of the change in assumptions to the fair value may not be linear. Additionally, the impact of a variation in a particular assumption on the fair value is calculated while holding other assumptions constant. In reality, changes in one factor may lead to changes in other factors, which could impact the above hypothetical effects.

Other noninterest income decreased $0.5 million for the first quarter of 2026 compared to the same period in 2025, primarily due to a decrease in interest rate swap and loan syndication revenue.

Noninterest Expense

The following table presents noninterest expense:

Our noninterest expenses increased $12.6 million to $75.3 million for the first quarter of 2026, from $62.7 million for the same period in 2025, primarily due to increases in salary and employee benefits, merger related expenses related to our acquisition of First Foundation, and other noninterest expenses.

Salary and employee benefits increased $7.8 million to $47.4 million for the first quarter of 2026, from $39.6 million for the same period in 2025, primarily due to an increase in headcount of commercial and industrial bankers and support personnel, higher levels of variable compensation associated with an increase in residential mortgage loan originations, and higher medical insurance costs.

Occupancy, equipment and software increased $0.5 million to $10.0 million for the first quarter of 2026, from $9.5 million for the same period in 2025, primarily due to higher software subscriptions and license fees.

Other noninterest expense increased $1.8 million to $14.8 million for the first quarter of 2026, from $13.0 million for the same period in 2025, primarily due to an increase in data processing expense and appraisal, servicing, and collection expense.

Income Taxes

We recorded income tax expense for the first quarter of 2026 of $4.8 million, compared to income tax expense of $6.1 million for the same period in 2025. The decrease in income tax expense was due to a decrease in income during the first quarter of 2026, compared to the same period in 2025. Our effective tax rate was 18.1% for the first quarter of 2026, compared to 20.6% for the same period in 2025.

Financial Condition

Balance Sheet

Our total assets were $8.6 billion and $8.5 billion, total liabilities were $7.4 billion and $7.3 billion, and total stockholders’ equity was $1.2 billion and $1.2 billion at March 31, 2026 and December 31, 2025, respectively.

Investment Securities

Our securities portfolio is used to make various term investments, maintain a source of liquidity and serve as collateral for certain types of deposits and borrowings. We manage our investment portfolio according to written investment policies approved by our board of directors. Investment in our securities portfolio may change over time based on our funding needs and interest rate risk management objectives. Our liquidity levels take into account anticipated future cash flows and other available sources of funds, and are maintained at levels that we believe are appropriate to provide the necessary flexibility to meet our anticipated funding requirements.

Our investment securities portfolio consists of securities classified as available-for-sale and held-to-maturity. All available-for sale securities are carried at fair value and may be used for liquidity purposes should management consider it to be in our best interest.

Our securities available-for-sale decreased by $10.4 million to $458.5 million at March 31, 2026, compared to December 31, 2025. During the period ended March 31, 2026, the securities held-to-maturity decreased $0.3 million to $33.6 million.

The following table is a summary of our investment portfolio as of:

The following table shows the weighted average yield to average life, which considers expected prepayments, of each category of investment securities as of March 31, 2026:

Loans

Our loan portfolio represents a broad range of borrowers primarily in our markets in Texas, Kansas, Colorado, New Mexico, Arizona, California and Washington primarily comprised of commercial and industrial, commercial real estate, residential real estate, and public finance loans. We have a diversified portfolio across a variety of industries, and the portfolio is generally centered in the states in which we have branch offices. Our lending focus continues to be on operating companies, including commercial and industrial loans and lines-of-credit, as well as owner occupied commercial real estate loans.

Total loans held-for-investment, net of deferred fees, costs, premiums and discounts were $6.9 billion at March 31, 2026 and $6.7 billion at December 31, 2025.

The following table sets forth the composition of our loan portfolio, as of:

Commercial and industrial loans include loans to commercial customers for use in normal business operations to finance working capital needs, equipment and inventory purchases, other expansion projects and loans to non-depository financial institutions. These loans are made primarily in our market areas and are underwritten on the basis of the borrower’s ability to service the debt from revenue, and are generally extended under our normal credit standards, controls and monitoring systems.

Commercial real estate (“CRE”) loans include owner occupied and non-owner occupied commercial real estate mortgage loans to operating commercial and agricultural businesses, and include both loans for long-term financing of land and buildings and loans made for the initial development or construction of a commercial real estate project. Non-owner occupied CRE loans were 64.3% of the Company’s risk-based capital, or 11.2% of total loans as of March 31, 2026. Non-owner occupied CRE loans associated with office space were $48.4 million, or 0.7% of total loans as of March 31, 2026. Owner occupied CRE loans associated with office space were $217.2 million, or 3.1% of total loans as of March 31, 2026.

Residential real estate loans represent loans to consumers collateralized by a mortgage on a residence and include purchase money, refinancing, secondary mortgages, and home equity loans and lines-of-credit.

Public finance loans include loans to our charter school and municipal based customers.

Consumer loans include direct consumer installment loans, credit card accounts, overdrafts and other revolving loans.

Other loans consist of lease financing receivables and loans for agricultural production.

Maturities and Sensitivity of Loans to Changes in Interest Rates

The information in the following tables is based on the contractual maturities of individual loans, including loans that may be subject to renewal at their contractual maturity. Renewal of these loans is subject to review and credit approval, as well as modification of terms upon maturity. Actual repayments of loans may differ from the maturities reflected below because borrowers have the right to prepay obligations with or without prepayment penalties. The following tables summarize the loan maturity distribution by type and related interest rate characteristics as of March 31, 2026:

Allowance for Credit Losses

We maintain the allowance for credit losses at a level we believe is sufficient to absorb expected losses in our loan portfolio given the conditions at the time and our estimates of future economic conditions. Events that are not within our control, such as changes in economic factors, could change subsequent to the reporting date and could cause increases or decreases to the allowance. The amount of the allowance is affected by loan charge-offs, which decrease the allowance; recoveries on loans previously charged off, which increase the allowance; and the provision for credit losses charged to earnings, which increases the allowance.

In determining the provision for credit losses, management monitors fluctuations in the allowance resulting from actual charge-offs and recoveries and reviews the size and composition of the loan portfolio in light of current and anticipated economic conditions. This evaluation is inherently subjective as it requires estimates that are susceptible to significant revision as more information becomes available or as events change.

The following table presents, by loan type, the changes in the allowance for credit losses:

The following table presents net charge-offs (recoveries) to average loans outstanding by loan category:

Allocation of Allowance for Credit Losses

The following table presents the allocation of the allowance for credit losses by category and the percentage of loans by category to total loans as of:

Nonperforming Assets

We have established policies and procedures to guide us in originating, monitoring and maintaining the credit quality of our loan portfolio. These policies and procedures are expected to be followed by our bankers and underwriters and exceptions to these policies require elevated levels of approval and are reported to our board of directors.

Nonperforming assets include all loans categorized as nonaccrual, accrual loans greater than 90 days past due, and other real estate owned and other repossessed assets. The accrual of interest on loans is discontinued, or the loan is placed on nonaccrual, when the full collection of principal and interest is in doubt. We do not generally accrue interest on loans that are 90 days or more past due. When a loan is placed on nonaccrual, previously accrued but unpaid interest is reversed and charged against interest income and future accruals of interest are discontinued. Payments by borrowers for loans on nonaccrual are applied to loan principal. Loans are returned to accrual status when, in our judgment, the borrower’s ability to satisfy principal and interest obligations under the loan agreement has improved sufficiently to reasonably assure recovery of principal and the borrower has demonstrated a sustained period of repayment performance. In general, we require a minimum of six consecutive months of timely payments in accordance with the contractual terms before returning a loan to accrual status.

The following table sets forth our nonperforming assets as of:

Deposits

Deposits represent our primary source of funds. Total deposits of $7.1 billion were largely unchanged at March 31, 2026, compared to December 31, 2025.

We are focused on growing our core deposits through relationship-based banking with our business and consumer clients. The following table presents our deposits by customer type as of:

The following table sets forth the average balance amounts and the average rates paid on deposits held by us:

As of March 31, 2026 and December 31, 2025, approximately $2.5 billion or 35.4% and $2.6 billion or 36.6%, respectively, of our deposit portfolio was uninsured. As of March 31, 2026 and December 31, 2025, approximately $2.0 billion or 28.6% and $2.1 billion or 29.0%, respectively, of our deposit portfolio was uninsured and uncollateralized. The uninsured, and uninsured and uncollateralized amounts are estimates based on the methodologies and assumptions used for the Bank's regulatory reporting requirements.

We actively participate in the IntraFi Cash Service (“ICS”) / Certificate of Deposit Account Registry Service (“CDARS”) program which provides FDIC insurance coverage for clients that maintain larger deposit balances. Deposits in the ICS /

CDARS program totaled $0.9 billion, or 12.8% of all deposits as of March 31, 2026, and $0.9 billion, or 12.2% of all deposits as of December 31, 2025.

The following table sets forth the portion of the Bank's time deposits, by account, that are in excess of the FDIC insurance limit, by remaining time until maturity, as of March 31,:

Liquidity

Liquidity refers to our ability to maintain cash flow that is adequate to fund operations, support asset growth, maintain reserve requirements and meet present and future obligations of deposit withdrawals, lending obligations and other contractual obligations.

FirstSun (Parent Company)

FirstSun has routine funding requirements consisting primarily of operating expenses, debt service, and funds used for acquisitions. FirstSun can obtain funding to meet its obligations from dividends collected from its subsidiaries, primarily the Bank, and through the issuance of varying forms of debt. At March 31, 2026, FirstSun had available cash and cash equivalents of $63.4 million and debt outstanding of $38.9 million. Management believes FirstSun has the ability to generate and obtain adequate amounts of liquidity to meet its requirements in the short-term and the long-term.

Federal banking laws regulate the amount of dividends that may be paid by banking subsidiaries without prior approval. The Bank may declare dividends without prior regulatory approval that do not exceed the total of retained net income for the current year combined with its retained net income for the preceding two years, subject to maintenance of minimum capital requirements. Prior regulatory approval to pay dividends was not required in 2025 and is not currently required. At March 31, 2026, the Bank could pay dividends to FirstSun of approximately $207.9 million without prior regulatory approval. During the three months ended March 31, 2026, the Bank did not pay dividends to FirstSun.

Bank

As more fully discussed in our 2025 Annual Report, we regularly monitor our liquidity position and make adjustments to the balance between sources and uses of funds as we deem appropriate. At March 31, 2026, our liquid assets, which consist of cash and amounts due from banks and interest-bearing deposits in other financial institutions, amounted to $400.0 million, or 4.7% of total assets, compared to $642.2 million, or 7.6% of total assets, at December 31, 2025. The decrease in our liquid assets was primarily due to a decrease in cash held at the Federal Reserve. At March 31, 2026, approximately 73% of the investment securities portfolio was pledged as collateral to secure public deposits and repurchase agreements. Our unencumbered available-for-sale securities at March 31, 2026 were $124.4 million, or 1.5% of total assets, compared to $132.6 million, or 1.6% of total assets, at December 31, 2025.

The liability portion of our balance sheet serves as a primary source of liquidity. We plan to meet our future cash needs primarily through the generation of deposits. Customer deposits have historically provided a sizable source of relatively stable and low-cost funds. At March 31, 2026, loans as a percentage of customer deposits were 97.9%, compared with 93.9% at December 31, 2025. For additional information related to our deposits, see Deposits section above. We are also a member of the FHLB and FRB, from which we can borrow for leverage or liquidity purposes. The FHLB and FRB require that securities and qualifying loans be pledged to secure any advances. Liquidity sources available to us for immediate funding at March 31, 2026, are as follows:

Management believes the Bank has the ability to generate and obtain adequate amounts of liquidity to meet its requirements in the short-term and the long-term.

Capital

Stockholders’ equity was $1.2 billion at March 31, 2026 and December 31, 2025, an increase of $22.2 million, or 1.9%.

We did not pay a dividend to our common stockholders for the three months ended March 31, 2026 and 2025.

Capital Adequacy

We are subject to various regulatory capital requirements administered by the federal banking agencies. Management routinely analyzes our capital to seek to ensure an optimized capital structure. For further information on capital adequacy see Note 12 - Regulatory Capital Matters to the consolidated financial statements.

Material Contractual Obligations, Commitments, and Contingent Liabilities

We have entered into contractual obligations in the normal course of business that involve elements of credit risk, interest rate risk and liquidity risk.

The following table summarizes our material contractual obligations as of March 31, 2026. Further discussion of each obligation or commitment is included in the referenced note to the consolidated financial statements.

We are party to various derivative contracts as a means to manage the balance sheet and our related exposure to changes in interest rates, to manage our residential real estate loan origination and sale activity, and to provide derivative contracts to our clients. Since the derivative liabilities recorded on the balance sheet change frequently and do not represent the amounts that may ultimately be paid under these contracts, these liabilities are not included in the table of contractual obligations presented above. Further discussion of derivative instruments is included in Note 6 - Derivative Financial Instruments to the consolidated financial statements.

In the normal course of business, various legal actions and proceedings are pending against us and our affiliates which are incidental to the business in which they are engaged. Further discussion of contingent liabilities is included in Note 15 - Commitments and Contingencies to the consolidated financial statements.

We are a party to financial instruments with off-balance sheet risk in the normal course of business to meet the financing needs of our customers. These financial instruments include commitments to extend credit, commercial letters of credit and standby letters of credit. Those instruments involve, to varying degrees, elements of credit and interest rate risk in excess of the amount recognized in the consolidated statements of financial condition. The contractual or notional amounts of those instruments reflect the extent of involvement we have in particular classes of financial instruments. Further discussion of contingent liabilities is included in Note 15 - Commitments and Contingencies to the consolidated financial statements.