FIRSTSUN CAPITAL BANCORP

The non-GAAP financial measures presented below are used by our management and our Board of Directors on a regular basis in addition to our GAAP results to facilitate the assessment of our financial performance and the efficiency of our operations. Management believes these non-GAAP financial measures provide greater understanding of our ongoing operations, enhance an investor’s understanding of our financial results by providing a meaningful basis for period-to-period comparisons, and assist in analyzing our operating results and comparing them across periods and to those of other companies. This information supplements our GAAP reported results, and should not be viewed in isolation from, or as a substitute for, our GAAP results. Accordingly, this financial information should be read in conjunction with our consolidated financial statements and notes thereto included elsewhere in this report. Non-GAAP financial measures exclude certain items that are included in the financial results presented in accordance with GAAP. Non-GAAP financial measures have inherent limitations, are not required to be uniformly applied, and are not audited. Although these non-GAAP financial measures are frequently used by investors to evaluate a company, they have limitations as analytical tools, and should not be considered in isolation, or as a substitute for analyses of results as reported under GAAP. These non-GAAP measures are not necessarily comparable to similar measures presented by other companies.

The following table presents GAAP to non-GAAP reconciliations:

Segments

Effective April 1, 2026, we revised our segment reporting structure to better reflect how the CODM evaluates the performance and allocates resources across the business following our acquisition of First Foundation. Historically, the Company had two primary operating segments: Banking and Mortgage Operations. Corporate represents costs not allocated to the operating segments, including those of FirstSun and our non-bank subsidiaries.

Beginning April 1, 2026, we added a third primary operating segment, Private Wealth Banking. This new segment reflects FirstSun Advisors (formerly First Foundation Advisors), an SEC-registered investment adviser acquired as part of the First Foundation acquisition. As a result, we now have three primary operating segments: Banking, Private Wealth Banking and Mortgage Operations, and we will continue to report Corporate, which represents costs not allocated to the operating segments, including those of FirstSun and our non-bank subsidiaries. The results discussed below reflect the updated segment structure for all current-period activity. Prior-period segment information has been recast, where applicable, to conform to the current presentation. The change in reportable segments did not impact our consolidated financial statements for prior periods other than reclassifications to conform prior period segment information to the current presentation.

Banking

Income before income taxes increased $27.9 million to $53.6 million for the third quarter of 2026, from $25.7 million for the same period in 2025. The period-over-period increase was primarily due to an increase in net interest income, partially offset by an increase in noninterest expense. Net interest income increased $60.9 million to $134.4 million for the third quarter of 2026, compared to $73.5 million for the same period in 2025, primarily due to the addition of interest-earning assets and interest-bearing liabilities acquired in the First Foundation acquisition and related purchase accounting accretion. Noninterest expense increased $44.2 million to $92.8 million for the third quarter of 2026, from $48.6 million for the same period in 2025. Salary and employee benefits, a component of noninterest expense, increased $10.3 million to $42.6 million for the third quarter of 2026, from $32.3 million for the same period in 2025, primarily due to an increase in headcount associated with the acquisition of First Foundation. Merger related expenses, a component of noninterest expense, increased $11.9 million to $12.0 million for the third quarter of 2026, compared to $0.1 million for the same period in 2025, related to the First Foundation acquisition. Identifiable assets for our Banking segment increased $6.7 billion to $13.7 billion at September 30, 2026 from $7.1 billion at September 30, 2025. The growth in identifiable assets was primarily driven by our acquisition of First Foundation.

Income before income taxes decreased $17.9 million to $68.6 million for the nine months ended September 30, 2026, from $86.4 million for the same period in 2025. The period-over-period decrease was primarily due to an increase in provision for credit losses, an increase in salary and employee benefits expense, and an increase in merger related expenses, partially offset by an increase in net interest income. Provision for credit losses increased $34.0 million to $53.1 million for the nine months ended September 30, 2026, compared to $19.1 million for the same period in 2025, primarily related to increased net charge-offs on two commercial and industrial (“C&I”) loans with no previous specific reserves. Salary and employee benefits expense increased $28.8 million to $121.2 million for the nine months ended September 30, 2026, compared to $92.4 million for the same period in 2025, primarily due to higher headcount from the acquisition of First Foundation, the addition of C&I bankers and support personnel, and higher medical insurance costs. Merger related expenses increased $54.9 million to $55.2 million for the nine months ended September 30, 2026, compared to $0.4 million for the same period in 2025, related to the First Foundation acquisition. Net interest income increased $132.9 million to $345.8 million for the nine months ended September 30, 2026 compared to $212.9 million for the same period in 2025, primarily due to the addition of interest-earning assets and interest-bearing liabilities acquired in the First Foundation acquisition and related purchase accounting accretion.

Private Wealth Banking

Income before income taxes increased $0.2 million to $0.2 million for the third quarter of 2026, compared to a loss before income taxes of $0.1 million for the same period in 2025. The period-over-period increase was primarily due to an increase in trust and investment advisory fees, partially offset by an increase in noninterest expense. Trust and investment advisory fees increased $8.5 million to $10.0 million for the third quarter of 2026, compared to $1.5 million for the same period in 2025, primarily due to the addition of FirstSun Advisors (formerly First Foundation Advisors) following the acquisition of First Foundation. Noninterest expense increased $7.6 million to $11.8 million for the third quarter of 2026, from $4.2 million for the same period in 2025. Salary and benefits, a component of noninterest expense, increased $5.4 million to $7.6 million for the third quarter of 2026, from $2.2 million for the same period in 2025, primarily due to an increase in headcount associated with the acquisition of First Foundation. Additionally, amortization of intangible assets increased $0.5 million for the third quarter of 2026 compared to the same period in 2025. Identifiable assets for our Private Wealth Banking segment increased $31.7 million to $124.7 million at September 30, 2026 from $92.9 million at September 30, 2025. The growth in identifiable assets was primarily driven by the acquisition of First Foundation.

Loss before income taxes increased $1.7 million to a loss of $2.1 million for the nine months ended September 30, 2026, compared to a loss of $0.4 million for the same period in 2025. The period-over-period increase in loss was primarily due to an increase in noninterest expense, partially offset by an increase in trust and investment advisory fees. Noninterest expense increased $17.3 million to $29.3 million for the nine months ended September 30, 2026, from $12.0 million for the same period in 2025. Salary and benefits, a component of noninterest expense, increased $11.6 million to $17.8 million for the nine months ended September 30, 2026, from $6.2 million for the same period in 2025, primarily due to an increase in headcount associated with the acquisition of First Foundation. Additionally, amortization of intangible assets and merger related expenses, increased $1.2 million and $0.7 million, respectfully, for the nine months ended September 30, 2026 compared to the same period in 2025. Trust and investment advisory fees increased $16.6 million to $21.0 million for the nine months ended September 30, 2026, compared to $4.4 million for the same period in 2025, primarily due to the addition of FirstSun Advisors (formerly First Foundation Advisors) following the acquisition of First Foundation.

Mortgage Operations

Income before income taxes decreased $3.8 million to $1.5 million for the third quarter of 2026, compared to $5.3 million for the same period in 2025. The period-over-period decrease was primarily due to an increase in salary and employee benefits, an increase in provision for credit losses, and an increase in other noninterest expenses, partially offset by an increase in net interest income. Salary and employee benefits increased $2.1 million to $11.9 million for the third quarter of 2026, compared to $9.7 million for the same period in 2025, primarily due to higher levels of variable compensation associated with an increase in mortgage loan originations. Provision for credit losses increased $1.6 million to $1.1 million for the third quarter of 2026, compared to $(0.4) million for the same period in 2025, primarily due to an increase in residential loans balances. Other noninterest expenses increased $1.0 million to $5.5 million for the third quarter of 2026, compared to $4.5 million for the same period in 2025, primarily due to higher appraisal, servicing and collection expenses. Net interest income increased $1.0 million to $7.6 million for the third quarter of 2026, compared to $6.5 million for the same period in 2025, primarily due to higher average balance and higher average yield on residential real estate loans. Identifiable assets for our Mortgage Operations segment increased $0.1 billion to $1.3 billion at September 30, 2026 from $1.2 billion at September 30, 2025. The growth in identifiable assets was primarily driven by organic growth in our residential mortgage portfolio.

Income before income taxes decreased $1.4 million to $10.8 million for the nine months ended September 30, 2026, compared to $12.2 million for the same period in 2025. The period over period decrease was primarily due to an increase in salary and employee benefits expense and an increase in other noninterest expense, partially offset by an increase in mortgage banking services income and an increase in net interest income. Salary and employee benefits expense increased $8.6 million to $36.5 million for the nine months ended September 30, 2026, compared to $27.9 million for the same period in 2025, primarily due to higher levels of variable compensation associated with an increase in mortgage loan originations. Other noninterest expense increased $2.9 million to $16.0 million for the nine months ended September 30, 2026, compared to $13.1 million for the same period in 2025, primarily due to higher mortgage service expense and credit service fees. Revenue from mortgage banking services increased $8.4 million to $45.3 million for the nine months ended September 30, 2026, compared to $36.9 million for the same period in 2025, primarily due to an increase in loan originations sold and higher net MSR capitalization. Net interest income increased $3.7 million to $21.8 million for the nine months ended September 30, 2026, compared to $18.1 million for the same period in 2025, primarily due to higher average balance and higher average yield on residential real estate loans.

Critical Accounting Estimates

In preparing the consolidated financial statements, management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities as of the date of the balance sheet and revenues and expenses for the period. Our accounting and reporting estimates are in accordance with U.S. generally accepted accounting principles, or “GAAP,” and conform to general practices within the banking industry. Changes in underlying factors, estimates, assumptions or judgments could result in material changes in our consolidated financial position and/or results of operations.

Certain policies inherently have a greater reliance on the use of estimates, assumptions and judgments and, as such, have a greater possibility of producing results that could be materially different than originally reported. As a result of our acquisition of First Foundation, which closed on April 1, 2026, we have updated our critical accounting estimates to include acquisition fair value measurements. Accordingly, we have identified the determination of the allowance for credit losses, fair value measurements of MSRs, and acquisition fair value measurements to be the accounting areas that require the most subjective or complex judgments and, as such, could be most subject to revision as new or additional information becomes available or circumstances change, including overall changes in the economic climate and/or market interest rates. Therefore, we consider the estimates underlying these policies to be critical accounting estimates and we discuss them directly with the Audit Committee of our Board of Directors.

We provide additional information about our critical accounting estimates in “Management’s Discussion and Analysis of Financial Condition and Results of Operations—Critical Accounting Estimates” in our 2025 Annual Report other than with respect to acquisition fair value measurements, which we discuss below. Other than as noted above and discussed below, there have been no material changes to our critical accounting policies or the estimates made pursuant to those policies during the most recent quarter from those disclosed in our 2025 Annual Report.

Our significant accounting policies are discussed in Note 1—Basis of Presentation, Description of Business and Summary of Significant Accounting Policies in the “Notes to the Consolidated Financial Statements” contained in Item 8 “Financial Statements and Supplementary Data” of our 2025 Annual Report.

Acquisition Fair Value Measurements

The acquisition method of accounting requires assets and liabilities in business combinations to be recorded at their estimated fair values as of the date of acquisition. To estimate fair value, we apply various valuation methodologies to assets acquired and liabilities assumed that often involve significant judgment. Examples of such estimates include loans held-for-investment and core deposit intangible assets, both of which we developed using an income approach. To value loans held-for-investment, management incorporated assumptions such as principal and interest cash flows, principal default and loss rates, prepayment rates, and discount rates utilizing company-specific and market data. The methodology used to value CDI assets considered the cost savings generated from the deposits relative to an alternative source of funds. Management incorporated assumptions in the CDI valuation such as customer attrition, discount rates, alternative cost of funding, and net maintenance costs. These fair value estimates are preliminary and subject to adjustment during the measurement period, which will not exceed one year from the acquisition date, as management obtains additional information about facts and circumstances that existed as of the acquisition date. Changes in these assumptions could result in materially different fair value measurements that may impact our financial condition, results of operations, or disclosures. Discussion of the assumptions and estimates used by us to assess and determine fair values associated with business combinations can be found in Note 2 - Acquisition of First Foundation Inc. of the Notes to Unaudited Consolidated Financial Statements.