FirstSun Q1 Loans Jump 7% as Charge-offs Hit $10.6M
FirstSun Capital Bancorp reported Q1 EPS of $0.76, slightly above consensus, while adjusted EPS of $0.84 missed the $0.86 forecast. Loans held for investment jumped 7% to $6.9B but net charge-offs surged to $10.6M and provisions for credit losses doubled to $8.3M.
1. Earnings Performance
FirstSun reported Q1 net income of $21.6 million, down from $23.6 million year-over-year, on revenue of $109.9 million versus $96.2 million. GAAP EPS was $0.76, topping consensus by $0.01, while adjusted EPS of $0.84 fell short of the $0.86 estimate after stripping out merger-related costs.
2. Loan Expansion
Loans held for investment reached $6.9 billion at quarter end, marking a 7% increase from the prior year’s first quarter. Management described the surge as unexpectedly strong, driven by new commercial and consumer lending activity.
3. Rising Charge-offs and Provisions
Net charge-offs leapt to $10.6 million from $631,000 a year earlier, with two large loans—a telecom borrower and an auto finance lender—accounting for over $10 million. The bank raised its provision for credit losses to $8.3 million, more than double last year’s level, to cover deterioration in collateral value and accommodate rapid loan growth.