FirstSun Capital Bancorp reported its financial results for the third quarter and the nine months ended September 30, 2024, highlighting a mixed performance compared to the previous fiscal period. The company recorded net income of $22.4 million for Q3 2024, down from $25.2 million in Q3 2023. For the nine months, net income was $59.3 million, a decrease from $79.5 million in the same period last year. Diluted earnings per share also fell to $0.79 for Q3 2024 from $1.00 in Q3 2023, and for the nine months, it decreased to $2.12 from $3.13.

Total interest income for Q3 2024 increased to $118.9 million, up from $106.8 million in Q3 2023, driven by higher interest income on loans, which rose to $104.2 million from $94.7 million. However, total interest expense also surged to $42.8 million from $33.4 million, leading to a net interest income of $76.2 million, a slight increase from $73.4 million in the prior year. The net interest margin for Q3 2024 was reported at 4.10%, down from 4.23% in Q3 2023.

The provision for credit losses saw a significant increase, totaling $5.0 million for Q3 2024 compared to $3.9 million in Q3 2023, and $22.7 million for the nine months, up from $11.7 million in the same period last year. This increase was primarily attributed to a substantial provision for a specific customer in the commercial and industrial loan portfolio.

Total noninterest income for Q3 2024 was $22.1 million, an increase from $18.7 million in Q3 2023, with notable growth in service charges on deposit accounts and income from mortgage banking services. However, total noninterest expense rose to $64.7 million from $56.2 million, driven by higher salary and employee benefits costs, which increased due to a larger workforce and higher variable compensation linked to mortgage loan originations.

As of September 30, 2024, total assets increased to $8.1 billion from $7.9 billion at the end of 2023, while total deposits rose to $6.6 billion from $6.4 billion. The company’s stockholders’ equity also improved to $1.0 billion, reflecting a 17.9% increase from the previous period.

Strategically, FirstSun is navigating a proposed merger with HomeStreet, which has faced regulatory hurdles, leading to a request to withdraw merger applications as of October 29, 2024. The company has raised significant capital to support this merger, including an $80 million private placement of common stock. The ongoing discussions with regulators indicate uncertainty regarding the merger's future.