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. Our interest income also includes the accretion of discounts and amortization of premiums on loans we acquired in business combinations, which affects our net interest income and net interest margin. In each business combination, acquired loans are initially recorded at fair value. For loans acquired before our adoption of ASU 2025-08, non-PCD loans were recorded at fair value, with any resulting discount or premium accreted into interest income over the life of the related loan, while PCD loans were recorded at fair value plus an initial allowance for credit losses (the “gross-up approach”), with the resulting non-credit discount or premium similarly accreted into interest income. For loans acquired after our adoption of ASU 2025-08 on April 1, 2026 in connection with our acquisition of First Foundation, loans are evaluated as PCD loans, purchased seasoned loans (“PSLs”), or other acquired loans. PCD loans and PSLs are accounted for using the gross-up approach, under which the initial allowance for credit losses is added to the purchase price to establish the loan’s initial amortized cost basis. Other acquired loans are recorded at fair value and an initial allowance for credit losses is recognized through provision for credit losses. Any non-credit discount or premium is accreted or amortized into interest income over the remaining life of the loan.

Our net interest income can also 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 $143.2 million for the second quarter of 2026, an increase of $64.7 million, or 82.4%, compared to the same period in 2025. Interest income on loans increased by $88.9 million for the second quarter of 2026, compared to the same period in 2025. Interest income on investment securities increased by $20.6 million for the second quarter of 2026, compared to the same period in 2025. Interest income on interest-bearing cash and other assets increased by $3.5 million for the second quarter of 2026, compared to the same period in 2025. Interest expense from total interest-bearing liabilities increased by $48.4 million for the second quarter of 2026, compared to the same period in 2025. Included in net interest income was net accretion income of purchase accounting discounts of $27.2 million for the second quarter of 2026, compared to $0.4 million for the same period in 2025.

Our net interest margin was 3.58% for the second quarter of 2026, compared to 4.07% for the same period in 2025, a decrease of 49 basis points. We experienced a 32 basis point decrease in yield from earning assets, while our total cost of interest-bearing liabilities increased by two basis points for the second quarter of 2026 as compared to the same period in 2025. Total earning assets increased $8.3 billion while total interest-bearing liabilities increased $6.8 billion, for the second quarter of 2026 as compared to the same period in 2025. The effect on net interest margin of net accretion income of purchase accounting discounts was an increase of 68 basis points for the second quarter of 2026, compared to two basis points for the same period in 2025.

Total average loans grew to $12.7 billion for the second quarter of 2026, an increase of $6.1 billion or 91.7%, compared to the same period in 2025, due primarily to loans acquired from First Foundation, as well as organic growth in our loan portfolio. Yield on loans decreased 27 basis points for the second quarter of 2026, compared to the same period in 2025, reflecting the impact of the declining interest rate environment and its impact on variable rate loans in the portfolio and 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 grew to $2.1 billion for the second quarter of 2026, an increase of $1.6 billion or 310.2%, compared to the same period in 2025, due primarily to investment securities acquired from First Foundation. Yield on investment securities increased 132 basis points for the second quarter of 2026, compared to the same period in 2025, due primarily to investment securities acquired from First Foundation. Average interest-bearing cash and other assets grew to $1.2 billion for the second quarter of 2026, an increase of $647.6 million or 108.5%, compared to the same period in 2025. Yield on interest-bearing cash and other assets decreased 108 basis points for the second quarter of 2026, compared to the same period in 2025, primarily due to the declining interest rate environment.

Average interest-bearing deposits grew to $11.9 billion for the second quarter of 2026, an increase of $6.5 billion or 121.2%, compared to the same period in 2025, due primarily to deposits assumed from First Foundation and organic growth. Cost of interest-bearing deposits decreased one basis point for the second quarter of 2026, compared to the same period in 2025. Average certificates of deposit increased from approximately $1.5 billion for the second quarter of 2025 to approximately $2.8 billion for the second quarter of 2026, due primarily to certificates of deposit assumed from First Foundation. Average FHLB borrowings increased from $2.3 million to $149.4 million for the second quarter of 2026, compared to the same period in 2025, due primarily to the acquisition of First Foundation. Cost of FHLB borrowings decreased 75 basis points for the second quarter of 2026, compared to the same period in 2025. Average other long-term borrowings increased $128.6 million, or 169.2%, for the second quarter of 2026, compared to the same period in 2025. Cost of other long-term borrowings increased 27 basis points for the second quarter of 2026, compared to the same period in 2025.

Our net interest income was $226.0 million for the six months ended June 30, 2026, an increase of $73.0 million, or 47.7%, compared to the same period in 2025. Interest income on loans increased by $95.8 million for the six months ended

June 30, 2026, compared to the same period in 2025. Interest income on investment securities increased by $20.3 million for the six months ended June 30, 2026, compared to the same period in 2025. Interest income on interest-bearing cash and other assets increased by $2.6 million for the six months ended June 30, 2026, compared to the same period in 2025. Interest expense from total interest-bearing liabilities increased by $45.8 million for the six months ended June 30, 2026, compared to the same period in 2025. Included in net interest income was net accretion income of purchase accounting discounts of $27.1 million for the six months ended June 30, 2026, compared to $0.4 million for the same period in 2025.

Our net interest margin was 3.80% for the six months ended June 30, 2026, compared to 4.07% for the same period in 2025, a decrease of 27 basis points. We experienced a 23 basis point decrease in yield from earning assets and total cost of interest-bearing liabilities decreased by seven basis points for the six months ended June 30, 2026, compared to the same period in 2025. Total earning assets increased $4.4 billion while total interest-bearing liabilities increased $3.5 billion, for the six months ended June 30, 2026 as compared to the same period in 2025. The effect on net interest margin of net accretion income of purchase accounting discounts was an increase of 46 basis points for the six months ended June 30, 2026, compared to one basis point for the same period in 2025.

Total average loans grew to $9.8 billion for the six months ended June 30, 2026, an increase of $3.3 billion, compared to the same period in 2025, due primarily to loans acquired from First Foundation, as well as organic growth in our loan portfolio. Yield on loans decreased 16 basis points for the six months ended June 30, 2026, compared to the same period in 2025, reflecting the impact of the declining interest rate environment and its impact on variable rate loans in the portfolio and 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 grew to $1.3 billion for the six months ended June 30, 2026, an increase of $0.8 billion or 157.1%, compared to the same period in 2025, due primarily to investment securities acquired from First Foundation. Yield on investment securities increased 100 basis points for the six months ended June 30, 2026, compared to the same period in 2025, due primarily to investment securities acquired from First Foundation. Average interest-bearing cash and other assets grew to $0.9 billion for the six months ended June 30, 2026, an increase of $0.3 billion or 63.1%, compared to the same period in 2025. Yield on interest-bearing cash and other assets decreased 107 basis points for the six months ended June 30, 2026, compared to the same period in 2025, primarily due to the declining interest rate environment.

Average interest-bearing deposits grew to $8.6 billion for the six months ended June 30, 2026, an increase of $3.4 billion or 65.2%, compared to the same period in 2025, due primarily to deposits assumed from First Foundation, as well as organic growth. Cost of interest-bearing deposits decreased nine basis points for the six months ended June 30, 2026, compared to the same period in 2025, primarily due to the declining interest rate environment largely offset by the addition of higher-cost deposits acquired from First Foundation. Average FHLB borrowings increased from $15.8 million to $75.6 million for the six months ended June 30, 2026, compared to the same period in 2025, due primarily to the acquisition of First Foundation. Cost of FHLB borrowings decreased 66 basis points for the six months ended June 30, 2026, compared to the same period in 2025. Average other long-term borrowings increased $45.2 million, or 59.5%, for the six months ended June 30, 2026, compared to the same period in 2025. Cost of other long-term borrowings increased five basis points for the six months ended June 30, 2026 compared to the same period in 2025.

The following tables set 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 June 30,:

As of and for the six months ended June 30,:

Rate-Volume Analysis

The tables below present 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 $40.4 million and $48.7 million for the second quarter of 2026 and for the six months ended June 30, 2026, respectively, compared to $4.5 million and $8.3 million for the same periods in 2025. The increase in our provision for credit losses for the second quarter of 2026 and for the six months ended June 30, 2026 was primarily related to increased net charge-offs on two C&I loans with no previous specific reserves. 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, for which we recognized an approximately $22.0 million charge-off in the second quarter of 2026. The second is a loan to a technology company with an outstanding principal balance of approximately $16.0 million at June 30, 2026, for which we recognized an approximately $12.9 million charge-off in the second quarter of 2026.

Noninterest Income

The following table presents noninterest income:

Our noninterest income increased $13.9 million to $40.9 million for the second quarter of 2026 from $27.1 million for the same period in 2025.

Deposit account service fees include overdraft and non-sufficient funds charges, and other service fees. Deposit account service fees increased $0.3 million for the second quarter of 2026, compared to the same period in 2025, primarily due to an increase in wire transfer service charges and 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 $0.7 million for the second quarter of 2026 compared to the same period in 2025, primarily due to an overall increase in our business customer base as a result of our acquisition of First Foundation 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 $0.2 million for the second quarter of 2026 compared to the same period in 2025, due to an increase in VISA purchase card transaction volumes.

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 $7.9 million for the second quarter of 2026 compared to the same period in 2025, primarily due to higher assets under management associated with the acquisition of First Foundation.

The components of mortgage banking services were as follows:

For the second quarter of 2026, mortgage banking services increased $2.7 million, compared to the same period in 2025. Total loan originations for sale were $464.7 million for the second quarter of 2026, an increase of $84.0 million from $380.6 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 $0.4 million to $5.0 million for the second quarter of 2026, from $4.6 million for the same period in 2025. Net MSR capitalization and changes in fair value, net of derivative activity, increased $0.7 million in the second 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 residential real estate MSRs when applying certain unfavorable variations of key assumptions to these assets as of June 30, 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 increased $2.0 million for the second quarter of 2026 compared to the same period in 2025, primarily due to the addition of multifamily banking services income and increases in credit line and other loan fees resulting from the acquisition of First Foundation, an increase in income from BOLI, and an increase in the fair value of investments related to our deferred compensation plan, partially offset by a write-down of an OREO property.

Our noninterest income increased $19.3 million to $68.1 million for the six months ended June 30, 2026 from $48.8 million for the same period in 2025.

Deposit account service fees increased $0.3 million for the six months ended June 30, 2026, compared to the same period in 2025, primarily due to an increase in wire transfer service charges and non-sufficient funds and overdraft fees.

Treasury management service fees increased $1.2 million for the six months ended June 30, 2026, compared to the same period in 2025, primarily due to an overall increase in our business customer base as a result of our acquisition of First Foundation as well as an increase in products and services provided to our existing customer base.

Credit and debit card fees increased $0.4 million for the six months ended June 30, 2026, compared to the same period in 2025, due to an increase in VISA purchase card transaction volumes.

Trust and investment advisory fees increased $8.0 million for the six months ended June 30, 2026, compared to the same period in 2025, primarily due to higher assets under management associated with the acquisition of First Foundation.

The components of mortgage banking services were as follows:

For the six months ended June 30, 2026, mortgage banking services income increased $7.9 million, compared to the same period in 2025. Total loan originations for sale were $890.6 million for the six months ended June 30, 2026, an increase of $259.0 million from $631.6 million for the same period in 2025. The increase in loan originations sold and higher margins 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 $0.8 million to $10.0 million for the six months ended June 30, 2026, from $9.1 million for the same period in 2025. Net MSR capitalization and changes in fair value, net of derivative activity, increased $1.7 million for the six months ended June 30, 2026, compared to the same period in 2025. The increase in revenue related to our MSRs was primarily the result of changes in market interest rates and our corresponding hedging positions.

Other noninterest income increased $1.5 million for the six months ended June 30, 2026 compared to the same period in 2025, primarily due to the addition of multifamily banking services income and increases in credit line and other loan fees resulting from the acquisition of First Foundation, an increase in income from BOLI, and 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 Expense

The following table presents noninterest expense:

Our noninterest expenses increased $103.6 million to $171.7 million for the second quarter of 2026, from $68.1 million for the same period in 2025.

Salary and employee benefits increased $24.8 million for the second quarter of 2026 compared to the same period in 2025, primarily due to an increase in headcount associated with the acquisition of First Foundation.

Occupancy, equipment and software increased $6.0 million for the second quarter of 2026 compared to the same period in 2025, primarily due to higher software subscriptions and license fees and rent expense resulting from the acquisition of First Foundation.

Customer service costs were $2.7 million for the second quarter of 2026 and consist of costs reimbursed to deposit customers in connection with noninterest-bearing demand deposit accounts assumed from First Foundation.

Amortization and impairment of intangible assets increased $3.7 million for the second quarter of 2026 compared to the same period in 2025, primarily due to core deposit and customer relationship intangibles amortization resulting from the acquisition of First Foundation.

Merger related expenses increased $57.3 million for the second quarter of 2026 compared to the same period in 2025, resulting from the acquisition of First Foundation.

Other noninterest expense increased $9.1 million for the second quarter of 2026 compared to the same period in 2025, primarily due to higher data processing and FDIC insurance expenses associated with our increased scale following the acquisition of First Foundation.

Our noninterest expenses increased $116.2 million to $247.1 million for the six months ended June 30, 2026, from $130.8 million for the same period in 2025.

Salary and employee benefits increased $32.6 million for the six months ended June 30, 2026 compared to the same period in 2025, primarily due to an increase in headcount associated with the acquisition of First Foundation and 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 $6.4 million for the six months ended June 30, 2026 compared to the same period in 2025, primarily due to higher software subscriptions and license fees and rent expense resulting from the acquisition of First Foundation.

Customer service costs were $2.7 million for the six months ended June 30, 2026 and consist of costs reimbursed to deposit customers in connection with noninterest-bearing demand deposit accounts assumed from First Foundation.

Amortization of intangible assets increased $3.5 million for the six months ended June 30, 2026 compared to the same period in 2025, primarily due to core deposit and customer relationship intangibles amortization resulting from the acquisition of First Foundation.

Merger related expenses increased $60.0 million for the six months ended June 30, 2026 compared to the same period in 2025, resulting from the acquisition of First Foundation.

Other noninterest expense increased $10.9 million for the six months ended June 30, 2026 compared to the same period in 2025, primarily due to higher data processing and FDIC insurance expenses associated with our increased scale following the acquisition of First Foundation.

Income Taxes

We recorded an income tax benefit for the second quarter of 2026 of $5.1 million, compared to income tax expense of $6.6 million for the same period in 2025. The decrease in income tax expense was due to a decrease in income during the second quarter of 2026, compared to the same period in 2025. Our effective tax rate was 18.3% for the second quarter of 2026, compared to 20.0% for the same period in 2025.

We recorded an income tax benefit for the six months ended June 30, 2026 of $0.3 million, compared to income tax expense of $12.7 million for the same period in 2025. The decrease in income tax expense was primarily due to a decrease in income during the six months ended June 30, 2026, compared to the same period in 2025. Our effective tax rate was 21.1% for the six months ended June 30, 2026, compared to 20.3% for the same period in 2025.

Financial Condition

Balance Sheet

Our total assets were $15.7 billion and $8.5 billion, total liabilities were $13.9 billion and $7.3 billion, and total stockholders’ equity was $1.8 billion and $1.2 billion at June 30, 2026 and December 31, 2025, respectively.

On June 30, 2026, our consolidated balance sheet included the impact of our acquisition of First Foundation, which closed on April 1, 2026, as discussed in Note 2 - Acquisition of First Foundation Inc. in Part I, Item 1 of this Quarterly Report. Under ASC 805, Business Combinations, we may adjust provisional fair values of assets acquired and liabilities assumed in a business combination for a measurement period of up to one year beyond the acquisition date as additional information about the facts and circumstances that existed as of the acquisition date becomes available. If applicable, any future measurement-period adjustments will be recorded as adjustments to the provisional amounts recognized at the acquisition date, with a corresponding adjustment to goodwill, as applicable. Below is a summary of the related impact of the First Foundation acquisition on our balance sheet as of the acquisition date:

•The fair value of assets acquired totaled $11.2 billion and included net loans of $6.0 billion and investment securities of $2.9 billion.

•The fair value of liabilities assumed totaled $10.5 billion and included total deposits of $8.8 billion and total borrowings of $1.6 billion.

•Core deposit intangibles and other intangibles recorded totaled $90.2 million.

•Preliminary goodwill recorded totaled $9.1 million.

On June 4, 2026, we closed on the sale of approximately $890 million of performing multifamily commercial real estate loans acquired from First Foundation to an unaffiliated third party. On June 25, 2026, we completed the sale of approximately $336 million of performing municipal loans acquired from First Foundation to an unaffiliated third party. These loan sales were each contemplated and announced as part of our balance sheet repositioning strategy related to the acquisition of First Foundation. Our balance sheet repositioning strategy resulted in the liquidation of assets, namely $1.2 billion in cash, $1.4 billion in securities, and $1.3 billion of loans (including the multifamily commercial real estate and municipal loans noted above), to reduce approximately $2.5 billion of deposits and $1.4 billion of borrowings.

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 increased by $1.4 billion to $1.9 billion at June 30, 2026, compared to December 31, 2025, due primarily to the First Foundation acquisition. During the period ended June 30, 2026, the securities held-to-maturity decreased $0.6 million to $33.3 million compared to December 31, 2025.

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 June 30, 2026:

Loans

Our loan portfolio represents a broad range of borrowers primarily in our markets in Texas, Kansas, Colorado, New Mexico, Arizona, California, Washington, Florida, Nevada and Hawaii, 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 $11.6 billion at June 30, 2026 and $6.7 billion at December 31, 2025, with the increase due primarily to the acquisition of First Foundation.

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 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, multifamily residential mortgage loans for terms up to 30 years for 5+ unit properties, and loans made for the initial development or construction of a commercial real estate project. Non-owner occupied CRE loans were 63.7% of the Company’s risk-based capital, or 10.3% of total loans as of June 30, 2026. Non-owner occupied CRE loans associated with office space were $115.7 million, or 1.0% of total loans as of June 30, 2026. Owner occupied CRE loans associated with office space were $148.6 million, or 1.3% of total loans as of June 30, 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 June 30, 2026:

Allowance for Credit Losses

At June 30, 2026, our allowance for credit losses was $173.6 million, compared to $85.0 million at December 31, 2025. The increase in the allowance for credit losses was primarily driven by $92.5 million of allowance for credit losses recorded for loans acquired in the acquisition of First Foundation.

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:

Criticized and 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.

Criticized loans consist of loans for which management has identified elevated credit risk through its ongoing credit administration and risk rating processes. These loans include credits classified as special mention, substandard, doubtful, or loss based on an evaluation of the borrower's financial condition, repayment capacity, collateral support, guarantor strength, and other relevant factors. Criticized loans are monitored closely by management and are subject to enhanced review procedures. Changes in criticized loan balances may result from the migration of loans between risk rating categories, changes in credit quality, portfolio acquisitions, loan payoffs, charge-offs, or other portfolio management activities.

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.

Criticized loans increased to $895.2 million, or 7.7% of total loans, at June 30, 2026, compared to $311.7 million, or 4.7% of total loans, at December 31, 2025. Approximately 78% of the increase was attributable to loans acquired from First Foundation, primarily in the multifamily real estate portfolio, included within commercial real estate. As part of the First Foundation acquisition, we performed a comprehensive credit review of the acquired loans, including the assignment of risk ratings under our credit grading methodologies, and loans were recorded at their amortized cost basis, which reflects their acquisition date fair value plus the initial allowance for expected credit losses recognized at acquisition.

Including the impact of the acquisition of First Foundation, the increase in criticized loans was concentrated in a limited number of industry segments, primarily multifamily real estate, included in commercial real estate, which represented approximately 62% of the total increase in criticized balances and approximately 40% of total criticized loans at June 30, 2026. Management believes the underlying collateral positions remain supportive of carrying values, as criticized multifamily loans had a weighted-average loan-to-value ratio of approximately 68% at quarter end.

The following table sets forth our criticized loans by portfolio type as of:

Nonperforming loans increased to $190.1 million, or 1.64% of total loans at June 30, 2026, compared to $60.8 million, or 0.91% at December 31, 2025, and included $32.7 million of PCD loans acquired from First Foundation. The increase was primarily concentrated in a limited number of larger credit relationships across multifamily real estate, included in commercial real estate, certain commercial and industrial borrowers, and residential mortgage loans, and we do not believe they reflect broad-based or systemic credit deterioration across our loan portfolio.

The following table sets forth our nonperforming assets as of:

Deposits

Deposits represent our primary source of funds. Total deposits were $13.4 billion at June 30, 2026 and $7.1 billion at December 31, 2025, with the increase due primarily to the acquisition of First Foundation.

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 June 30, 2026 and December 31, 2025, approximately $4.2 billion or 31.6% and $2.6 billion or 36.6%, respectively, of our deposit portfolio was uninsured. As of June 30, 2026 and December 31, 2025, approximately $3.8 billion or 28.0% 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 $1.5 billion, or 11.5% of all deposits as of June 30, 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 June 30,:

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, share repurchases, 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 June 30, 2026, FirstSun had available cash and cash equivalents of $52.8 million and debt outstanding of $213.1 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 June 30, 2026, the Bank could pay dividends to FirstSun of approximately $177.6 million without prior regulatory approval. During each of the three- and six-month periods ended June 30, 2026, the Bank paid dividends totaling $25.0 million 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 June 30, 2026, our liquid assets, which consist of unrestricted cash and amounts due from banks and interest-bearing deposits in other financial institutions, amounted to $979.1 million, or 6.2% of total assets, compared to $642.2 million, or 7.6% of total assets, at December 31, 2025. The increase in our liquid assets was primarily due to an increase in cash held at the Federal Reserve. At June 30, 2026, securities with a carrying value of $1.8 billion, or approximately 92% of our $1.9 billion investment securities portfolio, were pledged to secure public deposits, securities sold under agreements to repurchase, and borrowed funds. Our unencumbered securities at June 30, 2026 were approximately $149.8 million, or 1.0% of total assets, compared to $140.9 million, or 1.7% 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 June 30, 2026, loans as a percentage of customer deposits were 86.2%, 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 June 30, 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 $1.8 billion at June 30, 2026 and $1.2 billion at December 31, 2025, an increase of $684.0 million, or 59.3%. The increase in stockholders’ equity was primarily attributable to the issuance of approximately $686 million of equity consideration in connection with the acquisition of First Foundation.

We did not pay a dividend to our common stockholders for the three or six months ended June 30, 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 13 - 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 June 30, 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 7 - 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 16 - 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 16 - Commitments and Contingencies to the consolidated financial statements.