FSUN 10-Q Quarterly Report June 30, 2025

FIRSTSUN CAPITAL BANCORP

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PROXIES

DEF 14A	Filed on May 7, 2025
DEF 14A	Filed on March 21, 2025

fcb-20250630

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

__________________________________

FORM 10-Q

__________________________________


☒			QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended June 30, 2025


☐			TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

Commission File N umber 333-258176

__________________________________

FIRSTSUN CAPITAL BANCORP

(Exact name of registrant as specified in its charter)

__________________________________


Delaware						81-4552413
(State or other jurisdiction of incorporation or organization)						(I.R.S. Employer Identification Number)

1400 16th Street , Suite 250

Denver , Colorado 80202

( 303 ) 831-6704

(Address, including zip code, and telephone number, including area code, of registrant’s principal executive offices)

__________________________________

Securities registered pursuant to Section 12(b) of the Act:

Title of each class

Trading Symbol(s)

Name of each exchange
on which registered

Common Stock, $0.0001 Par Value

FSUN

Nasdaq Global Select Market

Indicate by check mark whether the Registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the Registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the Registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the Registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act.


Large accelerated filer	☐	Accelerated filer	☒
Non-accelerated filer	☐	Smaller reporting company	☐
		Emerging growth company	☒

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Securities Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act): Yes ☐ No ☒

As of August 7, 2025, there were approximately 27,835,050 shares of the registrant’s common stock outstanding.

Table of Contents


			Page
Cautionary Note Regarding Forward-Looking Statements			3
Part I - Financial Information (Unaudited)			5
Item 1. Financial Statements			5
Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations			49
Item 3. Quantitative and Qualitative Disclosures About Market Risk			75
Item 4. Controls and Procedures			76
Part II - Other Information			77
Item 1. Legal Proceedings			77





Item 6. Exhibits			78
Signatures			79

CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS

This Quarterly Report on Form 10-Q contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements reflect our current views with respect to, among other things, statements relating to the Company’s assets, business, cash flows, condition (financial or otherwise), credit quality, financial performance, liquidity, short and long-term performance goals, prospects, results of operations, strategic initiatives, the benefits, cost and synergies of completed acquisitions or dispositions, and the timing, benefits, costs and synergies of future acquisitions, disposition and other growth opportunities. They are not statements of historical or current fact nor are they assurances of future performance, and they generally can be identified by the use of forward-looking terminology, such as “believe,” “expect,” “anticipate,” “intend,” “target,” “estimate,” “continue,” “positions,” “plan,” “predict,” “project,” “forecast,” “guidance,” “goal,” “objective,” “prospects,” “possible” or “potential,” by future conditional verbs such as “assume,” “will,” “would,” “should,” “could” or “may,” or by variations of such words or by similar expressions. These forward-looking statements are subject to numerous assumptions, risks and uncertainties, which change over time, are difficult to predict and are generally beyond our control and should be viewed with caution.

There are or will be important factors that could cause our actual results to differ materially from those indicated in these forward-looking statements, including, but not limited to, the following:

• potential fluctuations or unanticipated changes in the interest rate environment, including interest rate changes made or other actions taken by the Board of Governors of the Federal Reserve, and their related impacts on macroeconomic conditions, customer and client behavior, our funding costs, and our loan and securities portfolios, as well as cash flow reassessments may reduce net interest margin and/or the volumes and values of loans made or held as well as the value of other financial assets;

• changes in the monetary and fiscal policies of the U.S. Government, including policies of the U.S. Department of the Treasury and the Federal Reserve;

• the potential effects of events beyond our control that may have a destabilizing effect on financial markets, economic growth, customer and client behavior and the economy in general, such as inflation and recessions, epidemics and pandemics, terrorist activities, wars and other foreign conflicts, climate change, deterioration in the global economy, instability in the credit markets, disruptions in our customers’ supply chains, disruptions in transportation, essential utility outages, or trade disputes and tariffs including threats thereof, either imposed by the U.S. or other trading partners in retaliation to U.S. tariffs;

• changes in legislation, regulation, policies or administrative practices, whether by judicial, governmental or legislative action and other changes pertaining to banking, securities, taxation, rent regulation and housing, financial accounting and reporting, environmental protection and insurance and the ability to comply with such changes in a timely manner;

• the risk that we may be required to make substantial expenditures to keep pace with regulatory initiatives and the rapid technological changes in the financial services market;

• competition from financial institutions and other financial service providers including non-bank financial technology providers and our ability to attract customers from other financial institutions;

• any unanticipated or greater than anticipated adverse conditions in the national or local economies in which we operate;

• our loan concentration in industries or sectors that may experience unanticipated or greater than anticipated adverse conditions than other industries or sectors in the national or local economies in which we operate;

• increased capital requirements, other regulatory requirements or enhanced regulatory supervision;

• cyber-security risks and the vulnerability of our network and online banking portals, and the systems or parties with whom we contract, to unauthorized access, computer viruses, phishing schemes, spam attacks, human error, natural disasters, power loss and other security breaches that could adversely affect our business and financial performance or reputation;

• risks with respect to our ability to identify and complete future mergers or acquisitions, as well as our ability to successfully expand and integrate those businesses and operations that we acquire;

• additional regulatory burdens that may be imposed upon us if our assets become in excess of $10 billion;

• the risks of expansion into new geographic or product markets;

• the inability to manage strategic initiatives and/or organizational changes;

• our ability to attract and retain key employees;

• volatility in the allowance for credit losses resulting from the CECL methodology, either alone or as that may be affected by conditions affecting our business;

• changes in accounting principles, policies, practices or guidelines;

• our reliance on third parties to provide key components of our business infrastructure and services required to operate our business;

• the availability of and access to capital; failures of internal controls and other risk management systems;

• the outcome or results (including judgments, costs, fines, reputational harm, inability to obtain necessary approvals and/or other negative effects) of current or future litigation, legislation, regulatory proceedings, examinations, investigations, or similar matters or developments related thereto, such as potential effects of the federal One Big Beautiful Bill Act on us or our customers;

• losses due to fraudulent or negligent conduct of our customers, third-party service providers or employees; and

• limitations on our ability to declare and pay dividends and other distributions from our bank to our holding company, which could affect our holding company’s liquidity, including its ability to pay dividends to shareholders or take other capital actions.

We caution readers that the foregoing list of factors is not exclusive, is not necessarily in order of importance and readers should not place undue reliance on any forward-looking statements. You should also consider the risks, assumptions and uncertainties set forth under “Item 1.A. Risk Factors,” of our Annual Report on Form 10-K for the year ended December 31, 2024 filed with the Securities and Exchange Commission (“SEC”) on March 7, 2025 (our “ 2024 Annual Report ”) as well as any additional factors that might be reported in future filings that we make with the SEC. If one or more events related to these or other risks or uncertainties materialize, or if our underlying assumptions prove to be incorrect, actual results may differ materially from our forward-looking statements. Accordingly, you should not place undue reliance on any such forward-looking statements. Further, any forward-looking statement speaks only as of the date on which it is made and we do not intend to and disclaim any obligation to update or revise any forward-looking statement to reflect events or circumstances after the date on which the statement is made or to reflect the occurrence of unanticipated events, unless required to do so under the federal securities laws.

Part I - Financial Information

Item 1. Financial Statements (Unaudited)

Index to Consolidated Financial Statements


			Page
Consolidated Balance Sheets			6
Consolidated Statements of Income and Comprehensive Income			7
Consolidated Statements of Stockholders' Equity			8
Consolidated Statements of Cash Flows			10
Notes to Consolidated Financial Statements			12
Note 1 - Organization and Basis of Presentation			12

Note 2 - Securities			14
Note 3 - Loans			18
Note 4 - Mortgage Servicing Rights			28
Note 5 - Derivative Financial Instruments			29
Note 6 - Deposits			32

Note 7 - Debt			33
Note 8 - Earnings Per Share			34

Note 9 - Stockholders' Equity			35
Note 10 - Income Taxes			36
Note 11 - Regulatory Capital Matters			37
Note 12 - Fair Value Measurements			38
Note 13 - Segment Information			41
Note 14 - Commitments and Contingencies			46
Note 15 - Lease Commitments			48

FIRSTSUN CAPITAL BANCORP

and Subsidiaries

Consolidated Balance Sheets

As of


	(Unaudited)
(In thousands, except par and share amounts)	June 30, 2025		December 31, 2024
Assets
Cash and cash equivalents	$	785,115	$	615,917
Securities available-for-sale, at fair value	473,468		469,076
Securities held-to-maturity, fair value of $ 28,973 and $ 29,563 , respectively	34,581		35,242
Loans held-for-sale, at fair value	90,781		61,825
Loans, net of allowance for credit losses of $ 82,993 and $ 88,221 , respectively	6,424,073		6,288,136
Mortgage servicing rights, at fair value	84,736		84,258
Premises and equipment, net	82,248		82,483
Other real estate owned and foreclosed assets, net	13,052		5,138
Bank-owned life insurance	82,177		81,115
Restricted equity securities	24,776		28,917
Goodwill	93,483		93,483
Core deposits and other intangible assets, net	6,228		7,434
Accrued interest receivable	33,904		32,102
Deferred tax assets, net	40,499		41,195
Prepaid expenses and other assets	166,740		171,066
Total assets	$	8,435,861	$	8,097,387

Liabilities and Stockholders’ Equity
Liabilities:
Deposits:
Noninterest-bearing accounts	$	1,706,678	$	1,541,158
Interest-bearing accounts	5,393,486		5,131,102
Total deposits	7,100,164		6,672,260
Securities sold under agreements to repurchase	11,173		14,699
Federal Home Loan Bank advances	—		135,000


Subordinated debt, net	76,066		75,841
Accrued interest payable	7,247		8,705
Accrued expenses and other liabilities	145,809		149,516
Total liabilities	7,340,459		7,056,021

Commitments and contingencies ( Note 14 )

Stockholders’ equity:
Preferred stock, $ 0.0001 par value, 10,000,000 shares authorized, none issued or outstanding, respectively	—		—
Common stock, $ 0.0001 par value; 50,000,000 shares authorized; 27,834,525 and 27,709,679 shares issued and outstanding, respectively	3		3
Additional paid-in capital	547,950		547,325

Retained earnings	583,105		533,150
Accumulated other comprehensive loss, net	( 35,656 )		( 39,112 )
Total stockholders’ equity	1,095,402		1,041,366
Total liabilities and stockholders’ equity	$	8,435,861	$	8,097,387

The accompanying notes are an integral part of these consolidated financial statements.

FIRSTSUN CAPITAL BANCORP

and Subsidiaries

Consolidated Statements of Income and Comprehensive Income

For the three and six months ended June 30,

(Unaudited)


	Three months ended June 30,				Six months ended June 30,
(In thousands, except per share amounts)	2025		2024		2025		2024
Interest income:
Interest and fee income on loans:
Taxable	$	101,590	$	100,839	$	197,791	$	198,152
Tax exempt	4,527		4,345		9,006		9,300
Interest and dividend income on securities:
Taxable	4,430		4,767		8,796		9,250
Tax exempt	3		5		7		9
Other interest income	6,371		4,573		11,768		7,858
Total interest income	116,921		114,529		227,368		224,569
Interest expense:
Interest expense on deposits	37,185		38,484		71,579		74,874
Interest expense on securities sold under agreements to repurchase	36		47		73		104
Interest expense on other borrowed funds	1,201		3,099		2,739		5,886
Total interest expense	38,422		41,630		74,391		80,864
Net interest income	78,499		72,899		152,977		143,705
Provision for credit losses	4,500		1,200		8,300		17,700
Net interest income after credit loss expense	73,999		71,699		144,677		126,005
Noninterest income:
Service charges on deposit accounts	2,016		2,372		4,043		4,716
Treasury management service fees	4,333		3,631		8,527		7,099
Credit and debit card fees	2,728		2,950		5,314		5,709
Trust and investment advisory fees	1,473		1,493		2,894		2,956
Income from mortgage banking services, net	13,274		11,043		22,329		20,545

(Loss) gain on other real estate owned and foreclosed assets activity, net	( 17 )		11		—		11

Other noninterest income	3,266		1,774		5,695		5,046
Total noninterest income	27,073		23,274		48,802		46,082
Noninterest expense:
Salary and employee benefits	43,921		39,828		83,482		77,181
Occupancy and equipment	9,541		8,701		19,077		17,296

Amortization and impairment of intangible assets	578		652		1,206		1,467
Terminated merger related expenses	—		1,046		—		3,535
Other noninterest expenses	14,070		13,648		27,067		26,224
Total noninterest expense	68,110		63,875		130,832		125,703
Income before income taxes	32,962		31,098		62,647		46,384
Provision for income taxes	6,576		6,538		12,692		9,528
Net income	$	26,386	$	24,560	$	49,955	$	36,856
Other comprehensive income:
Net unrealized gain on securities available-for-sale	255		6,620		3,456		1,886

Other comprehensive income	255		6,620		3,456		1,886
Comprehensive income	$	26,641	$	31,180	$	53,411	$	38,742

Earnings per share:
Net income available to common stockholders	$	26,386	$	24,560	$	49,955	$	36,856
Basic	$	0.95	$	0.90	$	1.80	$	1.35
Diluted	$	0.93	$	0.88	$	1.77	$	1.32

The accompanying notes are an integral part of these consolidated financial statements.

FIRSTSUN CAPITAL BANCORP

and Subsidiaries

Consolidated Statements of Stockholders’ Equity

For the three months ended June 30,

(Unaudited)


(in thousands, except share amounts)	Issued shares of common stock	Common stock		Additional paid-in capital		Retained earnings		Accumulated other comprehensive income (loss)		Total stockholders’ equity
2025
Balance, beginning of period	27,753,918	$	3	$	547,484	$	556,719	$	( 35,911 )	$	1,068,295


Net income	—	—		—		26,386		—		26,386
Other comprehensive income	—	—		—		—		255		255
Share-based compensation expense, net of forfeitures	—	—		1,056		—		—		1,056

Restricted stock activity, net of forfeitures (See Note 9 - Stockholders’ Equit y)	68,032	—		( 424 )		—		—		( 424 )
Stock option exercises, net	12,575	—		( 166 )		—		—		( 166 )



Balance, end of period	27,834,525	$	3	$	547,950	$	583,105	$	( 35,656 )	$	1,095,402

2024
Balance, beginning of period	27,442,943	$	3	$	542,582	$	469,818	$	( 47,741 )	$	964,662


Net income	—	—		—		24,560		—		24,560
Other comprehensive income	—	—		—		—		6,620		6,620
Share-based compensation expense, net of forfeitures	—	—		772		—		—		772
Issuance of common stock, net of issuance costs	—	—		( 32 )		—		—		( 32 )
Restricted stock activity, net of forfeitures (See Note 9 - Stockholders’ Equit y)	( 741 )	—		—		—		—		—
Stock option exercises, net	1,044	—		17		—		—		17



Balance, end of period	27,443,246	$	3	$	543,339	$	494,378	$	( 41,121 )	$	996,599

The accompanying notes are an integral part of these consolidated financial statements.

FIRSTSUN CAPITAL BANCORP

and Subsidiaries

Consolidated Statements of Stockholders’ Equity

For the six months ended June 30,

(Unaudited)


(in thousands, except share amounts)	Issued shares of common stock	Common stock		Additional paid-in capital		Retained earnings		Accumulated other comprehensive income (loss)		Total stockholders’ equity
2025
Balance, beginning of period	27,709,679	$	3	$	547,325	$	533,150	$	( 39,112 )	$	1,041,366


Net income	—	—		—		49,955		—		49,955
Other comprehensive income	—	—		—		—		3,456		3,456
Share-based compensation expense, net of forfeitures	—	—		1,692		—		—		1,692

Restricted stock activity, net of forfeitures (See Note 9 - Stockholders’ Equit y)	71,029	—		( 479 )		—		—		( 479 )
Stock option exercises, net	53,817	—		( 588 )		—		—		( 588 )



Balance, end of period	27,834,525	$	3	$	547,950	$	583,105	$	( 35,656 )	$	1,095,402

2024
Balance, beginning of period	24,960,639	$	2	$	462,680	$	457,522	$	( 43,007 )	$	877,197


Net income	—	—		—		36,856		—		36,856
Other comprehensive income	—	—		—		—		1,886		1,886
Share-based compensation expense, net of forfeitures	—	—		1,264		—		—		1,264
Issuance of common stock, net of issuance costs	2,461,538	1		79,483		—		—		79,484
Restricted stock activity, net of forfeitures (See Note 9 - Stockholders’ Equit y)	10,998	—		—		—		—		—
Stock option exercises, net	10,071	—		( 88 )		—		—		( 88 )



Balance, end of period	27,443,246	$	3	$	543,339	$	494,378	$	( 41,121 )	$	996,599

The accompanying notes are an integral part of these consolidated financial statements.

FIRSTSUN CAPITAL BANCORP

and Subsidiaries

Consolidated Statements of Cash Flows

For the six months ended June 30,

(Unaudited)


(In thousands)	2025		2024
Cash flows from operating activities:
Net income	$	49,955	$	36,856
Adjustments to reconcile income to net cash provided by operating activities:
Provision for credit losses	8,300		17,700
Depreciation and amortization on premises and equipment	4,103		3,601
Deferred tax expense	4,677		2,502
Amortization of net premium on securities	253		371
Accretion of net discount on acquired loans	( 851 )		( 1,513 )
Net change in deferred loan origination fees and costs	2,302		( 247 )
Amortization of core deposits and other intangible assets	1,206		1,467


Amortization of premium on acquired deposits	( 45 )		( 243 )
Accretion of discount on subordinated debt	151		191
Amortization of issuance costs on subordinated debt	73		73


Increase in cash surrender value of bank-owned life insurance	( 1,062 )		( 932 )

Impairment of other real estate owned and foreclosed assets	642		53
Federal Home Loan Bank stock dividends	( 369 )		( 351 )
Share-based compensation expense	1,692		1,264
Decrease in fair value of mortgage servicing rights	6,295		1,254


Net loss on disposal of premises and equipment	133		5
Net loss (gain) on other real estate owned and foreclosed assets activity	—		( 11 )

Net gain on sales of loans held-for-sale	( 4,135 )		( 3,595 )
Origination of loans held-for-sale	( 641,544 )		( 495,027 )
Proceeds from sales of loans held-for-sale	609,949		482,741

Changes in operating assets and liabilities:
Lease right-of-use assets	24		( 7 )
Accrued interest receivable	( 1,802 )		( 793 )


Prepaid expenses and other assets	12,056		( 1,750 )
Accrued interest payable	( 1,458 )		( 4,381 )
Accrued expenses and other liabilities	( 4,084 )		8,794
Deferred tax assets	( 5,100 )		—
Net cash provided by operating activities	$	41,361	$	48,022

The accompanying notes are an integral part of these consolidated financial statements.

FIRSTSUN CAPITAL BANCORP

and Subsidiaries

Consolidated Statements of Cash Flows (continued)

For the six months ended June 30,

(Unaudited)


(In thousands)	2025		2024
Cash flows from operating activities: (previous page)	$	41,361	$	48,022

Cash flows from investing activities:


Proceeds from maturities of held-to-maturity securities	725		729
Purchases of available-for-sale securities	( 20,772 )		( 5,584 )
Proceeds from paydowns, sales or maturities of available-for-sale securities	20,246		31,311
Loan originations, net of repayments	( 155,142 )		( 90,282 )


Purchases of premises and equipment	( 4,001 )		( 2,084 )


Proceeds from sales of other real estate owned and foreclosed assets	249		324

Proceeds from bank-owned life insurance	—		725
Purchases of restricted equity securities	( 634 )		( 42,462 )
Proceeds from the sale or redemption of restricted equity securities	5,143		50,039
Purchase of other investments	( 6,819 )		( 11,041 )
Proceeds from the sale or redemption of other investments	486		399
Net cash used in investing activities	( 160,519 )		( 67,926 )

Cash flows from financing activities:
Net change in deposits	427,949		245,665
Net change in securities sold under agreements to repurchase	( 3,526 )		( 4,285 )
Proceeds from Federal Home Loan Bank advances	293,000		2,049,410
Repayments of Federal Home Loan Bank advances	( 428,000 )		( 2,293,878 )





Proceeds from issuance of common stock, net of issuance costs and taxes paid on cashless exercise of equity awards	( 1,067 )		79,396


Net cash provided by financing activities	288,356		76,308
Net increase in cash and cash equivalents	169,198		56,404
Cash and cash equivalents, beginning of period	615,917		479,362
Cash and cash equivalents, end of period	$	785,115	$	535,766

Supplemental disclosures of cash flow information:
Interest paid on deposits	$	72,973	$	79,093
Interest paid on borrowed funds	$	2,754	$	6,080
Cash paid for income taxes, net	$	9,720	$	5,277
Non-cash investing and financing activities:


Net change in unrealized gain (loss) on available-for-sale securities	$	4,575	$	2,496
Loan charge-offs	$	14,409	$	19,966

Loans transferred to other real estate owned and foreclosed assets	$	8,805	$	764

Mortgage servicing rights resulting from sale or securitization of mortgage loans	$	6,773	$	5,297

The accompanying notes are an integral part of these consolidated financial statements.

FIRSTSUN CAPITAL BANCORP and Subsidiaries

Notes to Consolidated Financial Statements

(Unaudited)

($ in thousands, except share and per share amounts)

NOTE 1 - Organization and Basis of Presentation

Nature of Operations - The consolidated financial statements include the accounts of FirstSun Capital Bancorp (“FirstSun” or “Parent Company”) and its wholly-owned subsidiaries, Sunflower Bank, N.A. (the “Bank” or “Sunflower Bank”), Sunflower Wealth Advisors, LLC (“SWA”), and FEIF Capital Partners, LLC, and have been prepared using U.S. generally accepted accounting principles (“U.S. GAAP”) and prevailing practices in the banking industry. All significant intercompany balances and transactions have been eliminated. These entities are collectively referred to as “our”, “us”, “we”, or “the Company”.

These consolidated financial statements in this Quarterly Report on Form 10-Q do not include all of the information and footnotes required by U.S. GAAP for a full year presentation and certain disclosures have been condensed or omitted in accordance with rules and regulations of the SEC. These interim financial statements are unaudited, and include, in our opinion, all adjustments necessary for a fair statement of the results for the periods indicated, which are not necessarily indicative of results which may be expected for the full year. These unaudited consolidated financial statements and notes should be read in conjunction with FirstSun’s audited consolidated financial statements and footnotes thereto for the year ended December 31, 2024, included in our 2024 Annual Report .

Use of Estimates - The preparation of consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions based on available information. These estimates and assumptions affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

These estimates are based on historical experience and on various assumptions about the future that are believed to be reasonable based on all available information. Our reported financial position or results of operations may be materially different under changed conditions or when using different estimates and assumptions, particularly with respect to critical accounting policies. In the event that estimates or assumptions prove to differ from actual results, adjustments are made in subsequent periods to reflect more current information.

Reclassifications - Some items in the prior year financial statements were reclassified to conform to the current presentation. Reclassifications had no effect on prior years net income or stockholders’ equity.

Accounting Pronouncements Recently Adopted - As an “emerging growth company” under Section 107 of the JOBS Act, we can take advantage of the extended transition period provided in Section 7(a)(2)(B) of the Securities Act for complying with new or revised accounting standards. Therefore, we can delay the adoption of certain accounting standards until those standards would otherwise apply to non-public business entities. We intend to take advantage of the benefits of this extended transition period for an “emerging growth company” for as long as it is available to us. For standards that we have delayed adoption, we may lack comparability to other companies who have adopted such standards.

In November of 2023, the FASB issued ASU 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures , which improves reportable segment disclosure requirements, primarily through enhanced disclosures about significant segment expenses. We adopted the amendments in this ASU on January 1, 2024. A description of each business and the methodologies used to measure financial performance is described in Note 13 - Segment Information .

Recent Accounting Pronouncements Not Yet Adopted - ASU 2023-06, “Disclosure Improvements - Codification Amendments in Response to the SEC’s Disclosure Update and Simplification Initiative.” ASU 2023-06 amends the ASC to incorporate certain disclosure requirements from SEC Release No. 33-10532 - Disclosure Update and Simplification that was issued in 2018. The effective date for each amendment will be the date on which the SEC’s removal of that related disclosure from Regulation S-X or Regulation S-K becomes effective, with early adoption prohibited. ASU 2023-06 is not expected to have a significant impact on our financial statements.

ASU No. 2023-09, “Income Taxes (Topic 740): Improvements to Income Tax Disclosures.” ASU 2023-09 requires public business entities to disclose in their rate reconciliation table additional categories of information about federal, state and foreign income taxes and to provide more details about the reconciling items in some categories if items meet a quantitative threshold. ASU 2023-09 also requires all entities to disclose income taxes paid, net of refunds, disaggregated by federal, state and foreign taxes for annual periods and to disaggregate the information by jurisdiction based on a quantitative threshold, among other things. ASU 2023-09 is effective for us on January 1, 2026; however early adoption is permitted. ASU 2023-09 is not expected to have a significant impact on our financial statements.

ASU No. 2024-03, “Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses.” ASU 2024-03 requires disaggregated disclosure of income statement expenses for public business entities. ASU 2024-03 requires new financial statement disclosures in tabular format, disaggregating information about prescribed categories underlying any relevant income statement expense caption. The prescribed categories include, among other things, employee compensation, depreciation, and intangible asset amortization. Additionally, entities must disclose the total amount of selling expenses and, in annual reporting periods, an entity’s definition of selling expenses. ASU 2024-03 is effective for us, on a prospective basis, for annual periods beginning January 1, 2027, and interim periods within fiscal years beginning January 1, 2028, though early adoption and retrospective application is permitted. ASU 2024-03 is not expected to have a significant impact on our financial statements.

NOTE 2 - Securities

The amortized cost, gross unrealized gains and losses, and fair values of available-for-sale and held-to-maturity debt securities by type follows as of:


	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Estimated Fair Value
June 30, 2025
Available-for-sale:
U.S. treasury	$	35,194	$	—	$	( 2,589 )	$	32,605
U.S. agency	556		—		( 7 )		549
Obligations of states and political subdivisions	29,427		—		( 2,348 )		27,079
Mortgage backed - residential	112,840		134		( 14,207 )		98,767
Collateralized mortgage obligations	173,854		1		( 17,563 )		156,292
Mortgage backed - commercial	153,132		462		( 11,285 )		142,309
Other debt	15,664		205		( 2 )		15,867
Total available-for-sale	$	520,667	$	802	$	( 48,001 )	$	473,468
Held-to-maturity:


Obligations of states and political subdivisions	$	25,801	$	—	$	( 4,946 )	$	20,855
Mortgage backed - residential	5,951		—		( 504 )		5,447
Collateralized mortgage obligations	2,829		1		( 159 )		2,671


Total held-to-maturity	$	34,581	$	1	$	( 5,609 )	$	28,973
December 31, 2024
Available-for-sale:
U.S. treasury	$	35,224	$	—	$	( 3,494 )	$	31,730
U.S. agency	665		—		( 9 )		656
Obligations of states and political subdivisions	27,709		31		( 2,041 )		25,699
Mortgage backed - residential	111,038		128		( 14,887 )		96,279
Collateralized mortgage obligations	183,718		3		( 19,374 )		164,347
Mortgage backed - commercial	147,374		357		( 12,904 )		134,827
Other debt	15,122		416		—		15,538
Total available-for-sale	$	520,850	$	935	$	( 52,709 )	$	469,076
Held-to-maturity:


Obligations of states and political subdivisions	$	25,713	$	—	$	( 4,899 )	$	20,814
Mortgage backed - residential	6,373		1		( 576 )		5,798
Collateralized mortgage obligations	3,156		—		( 205 )		2,951


Total held-to-maturity	$	35,242	$	1	$	( 5,680 )	$	29,563

There was no allowance for credit losses related to our investment securities as of June 30, 2025 and December 31, 2024.

As of June 30, 2025 and December 31, 2024, there were no holdings of securities of any one issuer, other than the U.S. Government and its agencies, in an amount greater than 10% of stockholders’ equity.

Fair value and unrealized losses on debt securities by type and length of time in a continuous unrealized loss position without an allowance for credit losses were as follows:


	Less than 12 months				12 months or longer				Total
	Estimated Fair Value		Unrealized Losses		Estimated Fair Value		Unrealized Losses		Estimated Fair Value		Unrealized Losses		Number of Securities
June 30, 2025
Available-for-sale:
U.S. treasury	$	—	$	—	$	32,605	$	( 2,589 )	$	32,605	$	( 2,589 )	4
U.S. agency	—		—		549		( 7 )		549		( 7 )		4
Obligations of states and political subdivisions	—		—		26,335		( 2,348 )		26,335		( 2,348 )		19
Mortgage backed - residential	10,693		( 161 )		81,886		( 14,046 )		92,579		( 14,207 )		87
Collateralized mortgage obligations	10,067		( 14 )		144,986		( 17,549 )		155,053		( 17,563 )		60
Mortgage backed - commercial	12,878		( 95 )		108,998		( 11,190 )		121,876		( 11,285 )		23
Other debt	—		—		2,001		( 2 )		2,001		( 2 )		1
Total available-for-sale	$	33,638	$	( 270 )	$	397,360	$	( 47,731 )	$	430,998	$	( 48,001 )	198
Held-to-maturity:


Obligations of states and political subdivisions	$	—	$	—	$	20,527	$	( 4,946 )	$	20,527	$	( 4,946 )	8
Mortgage backed - residential	18		—		5,373		( 504 )		5,391		( 504 )		11
Collateralized mortgage obligations	—		—		2,671		( 159 )		2,671		( 159 )		5


Total held-to-maturity	$	18	$	—	$	28,571	$	( 5,609 )	$	28,589	$	( 5,609 )	24


	Less than 12 months				12 months or longer				Total
	Estimated Fair Value		Unrealized Losses		Estimated Fair Value		Unrealized Losses		Estimated Fair Value		Unrealized Losses		Number of Securities
December 31, 2024
Available-for-sale:
U.S. treasury	$	—	$	—	$	31,730	$	( 3,494 )	$	31,730	$	( 3,494 )	4
U.S. agency	—		—		656		( 9 )		656		( 9 )		7
Obligations of states and political subdivisions	—		—		22,253		( 2,041 )		22,253		( 2,041 )		17
Mortgage backed - residential	3,788		( 49 )		86,626		( 14,838 )		90,414		( 14,887 )		81
Collateralized mortgage obligations	10,785		( 12 )		146,740		( 19,362 )		157,525		( 19,374 )		62
Mortgage backed - commercial	1,705		( 51 )		112,801		( 12,853 )		114,506		( 12,904 )		23

Total available-for-sale	$	16,278	$	( 112 )	$	400,806	$	( 52,597 )	$	417,084	$	( 52,709 )	194
Held-to-maturity:


Obligations of states and political subdivisions	$	329	$	—	$	20,485	$	( 4,899 )	$	20,814	$	( 4,899 )	9
Mortgage backed - residential	—		—		5,703		( 576 )		5,703		( 576 )		10
Collateralized mortgage obligations	—		—		2,951		( 205 )		2,951		( 205 )		5


Total held-to-maturity	$	329	$	—	$	29,139	$	( 5,680 )	$	29,468	$	( 5,680 )	24

We do not consider the unrealized losses to be credit-related, as these unrealized losses primarily relate to changes in interest rates and market spreads subsequent to purchase. We do not have plans to sell any of the available-for-sale debt securities with unrealized losses as of June 30, 2025, and we believe it is more likely than not that we would not be required to sell such available-for-sale debt securities before recovery of their amortized cost.

We continue to monitor unrealized loss positions for potential credit impairments. During the three and six months ended June 30, 2025 and 2024, there were no credit impairments related to our investment securities.

The amortized cost and fair value of our debt securities by contractual maturity as of June 30, 2025 are summarized in the following table. Maturities are based on the final contractual payment dates and do not reflect the impact of prepayments or earlier redemptions that may occur.


	Amortized Cost		Estimated Fair Value
Available-for-sale:
Due within 1 year	$	338	$	338
Due after 1 year through 5 years	108,435		103,907
Due after 5 years through 10 years	127,851		117,671
Due after 10 years	284,043		251,552
Total available-for-sale	$	520,667	$	473,468
Held-to-maturity:

Due after 1 year through 5 years	$	785	$	774
Due after 5 years through 10 years	4,022		3,784
Due after 10 years	29,774		24,415
Total held-to-maturity	$	34,581	$	28,973

Securities with a carrying value of $ 426,201 and $ 460,387 were pledged to secure public deposits, securities sold under agreements to repurchase and borrowed funds at June 30, 2025 and December 31, 2024, respectively.

Available-for-sale debt securities with a carrying value of $ 37,760 and $ 37,749 were designated in fair value hedges at June 30, 2025 and December 31, 2024, respectively. See Note 5 - Derivative Financial Instruments for further information.

There were $ 0 and $ 946 proceeds from sales and calls of securities for the three and six months ended June 30, 2025, respectively. There were $ 0 proceeds from sales and calls of securities for the three and six months ended June 30, 2024.

NOTE 3 - Loans

Loans held-for-investment by portfolio type consist of the following as of:


	June 30, 2025		December 31, 2024
Commercial and industrial	$	2,651,646	$	2,497,772
Commercial real estate:
Non-owner occupied	705,749		752,861
Owner occupied	662,120		702,773
Construction and land	383,969		362,677
Multifamily	134,520		94,355
Total commercial real estate	1,886,358		1,912,666
Residential real estate	1,226,760		1,180,610
Public finance	524,441		554,784
Consumer	43,080		41,345
Other	174,781		189,180
Total loans	$	6,507,066	$	6,376,357
Allowance for credit losses	( 82,993 )		( 88,221 )
Loans, net of allowance for credit losses	$	6,424,073	$	6,288,136

As of June 30, 2025 and December 31, 2024, we had net deferred fees, costs, premiums and discounts of $ 11,684 and $ 10,222 , respectively, on our loan portfolio.

Accrued interest receivable on loans totaled $ 31,609 and $ 29,971 at June 30, 2025 and December 31, 2024, respectively, and is included in accrued interest receivable in the accompanying consolidated balance sheets.

The following table presents the activity in the allowance for credit losses by portfolio type for the three months ended June 30,:


	Commercial and Industrial		Commercial Real Estate		Residential Real Estate		Public Finance		Consumer		Other		Total
2025
Allowance for credit losses:
Balance, beginning of period	$	42,671	$	26,684	$	15,211	$	5,243	$	718	$	1,263	$	91,790

Provision (benefit) for credit losses	5,096		( 1,203 )		38		( 360 )		123		1,056		4,750
Loans charged off	( 11,089 )		—		—		( 1,680 )		( 85 )		( 743 )		( 13,597 )
Recoveries	2		—		—		—		48		—		50
Balance, end of period	$	36,680	$	25,481	$	15,249	$	3,203	$	804	$	1,576	$	82,993
2024
Allowance for credit losses:
Balance, beginning of period	$	28,270	$	29,333	$	14,989	$	5,778	$	624	$	835	$	79,829

Provision (benefit) for credit losses	( 1,025 )		581		1,031		143		171		239		1,140
Loans charged off	( 2,261 )		—		( 38 )		—		( 161 )		—		( 2,460 )
Recoveries	414		5		—		—		32		—		451
Balance, end of period	$	25,398	$	29,919	$	15,982	$	5,921	$	666	$	1,074	$	78,960

The following table presents the activity in the allowance for credit losses by portfolio type for the six months ended June 30,:


	Commercial and Industrial		Commercial Real Estate		Residential Real Estate		Public Finance		Consumer		Other		Total
2025
Allowance for credit losses:
Balance, beginning of period	$	37,912	$	28,323	$	15,450	$	4,750	$	750	$	1,036	$	88,221

Provision (benefit) for credit losses	10,379		( 2,842 )		( 224 )		133		221		1,283		8,950
Loans charged-off	( 11,732 )		—		—		( 1,680 )		( 254 )		( 743 )		( 14,409 )
Recoveries	121		—		23		—		87		—		231
Balance, end of period	$	36,680	$	25,481	$	15,249	$	3,203	$	804	$	1,576	$	82,993
2024
Allowance for credit losses:
Balance, beginning of period	$	29,523	$	27,546	$	16,345	$	5,337	$	717	$	930	$	80,398

Provision (benefit) for credit losses	15,041		2,368		( 333 )		584		196		144		18,000
Loans charged-off	( 19,627 )		—		( 38 )		—		( 301 )		—		( 19,966 )
Recoveries	461		5		8		—		54		—		528
Balance, end of period	$	25,398	$	29,919	$	15,982	$	5,921	$	666	$	1,074	$	78,960

We determine the allowance for credit losses estimate on at least a quarterly basis.

As of June 30, 2025 and December 31, 2024, we had an allowance for credit losses on unfunded commitments of $ 1,009 and $ 1,659 , respectively. For the three months ended June 30, 2025 and 2024 we recorded a (benefit) provision for credit losses on unfunded commitments of $( 250 ) and $ 60 , respectively. For the six months ended June 30, 2025 and 2024 we recorded a benefit for credit losses on unfunded commitments of $ 650 and $ 300 , respectively.

The following table presents our loan portfolio aging analysis as of:


	Loans Not Past Due		Loans 30-59 Days Past Due		Loans 60-89 Days Past Due		Loans Greater than 90 Days Past Due, Still Accruing		Nonaccrual		Total
June 30, 2025
Commercial and industrial	$	2,603,076	$	2,141	$	18,338	$	180	$	27,911	$	2,651,646
Commercial real estate:
Non-owner occupied	700,705		226		567		—		4,251		705,749
Owner occupied	657,095		—		2,478		—		2,547		662,120
Construction and land	373,743		10,226		—		—		—		383,969
Multifamily	132,895		—		—		—		1,625		134,520
Total commercial real estate	1,864,438		10,452		3,045		—		8,423		1,886,358
Residential real estate	1,206,517		726		1,230		14		18,273		1,226,760
Public Finance	524,441		—		—		—		—		524,441
Consumer	43,034		6		—		—		40		43,080
Other	174,781		—		—		—		—		174,781
Total loans	$	6,416,287	$	13,325	$	22,613	$	194	$	54,647	$	6,507,066
December 31, 2024
Commercial and industrial	$	2,462,455	$	6,331	$	672	$	—	$	28,314	$	2,497,772
Commercial real estate:
Non-owner occupied	748,237		274		—		—		4,350		752,861
Owner occupied	697,639		1,856		—		—		3,278		702,773
Construction and land	362,677		—		—		—		—		362,677
Multifamily	92,681		—		—		—		1,674		94,355
Total commercial real estate	1,901,234		2,130		—		—		9,302		1,912,666
Residential real estate	1,140,193		17,065		3,117		15		20,220		1,180,610
Public Finance	547,558		—		—		—		7,226		554,784
Consumer	41,245		36		—		—		64		41,345
Other	177,727		7,156		388		1,518		2,391		189,180
Total loans	$	6,270,412	$	32,718	$	4,177	$	1,533	$	67,517	$	6,376,357

Interest income recorded on nonperforming loans was not material for the three and six months ended June 30, 2025 and 2024.

Credit risk monitoring and management is a continuous process to manage the quality of the loan portfolio. We segment loans into risk categories based on relevant borrower risk profile information, including the ability of borrowers to service their debt based on current financial information, historical payment experience, credit documentation, public information and current economic trends among other factors. The risk rating system is used as a tool to analyze and monitor movements in loan portfolio quality.

Risk ratings meeting an internally specified exposure threshold are updated annually, or more frequently upon the occurrence of a circumstance that affects the credit risk of the loan. We use the following definitions for risk ratings:

Pass – Loans classified as Pass have a well-defined primary source of repayment, an acceptable financial position profile (including capitalization), profitability and minimal operating risk.

Pass/Watch – Pass/Watch loans require close attention by bank management and enhanced monitoring due to quantitative or qualitative concerns linked to adverse trends or near-term uncertainty. A covenant default or other type of requirement shortfall may have arisen subsequent to a loan's booking or borrower now shows signs of weakness in the overall base of confirmable financial resources available to repay the loan. However, overall financial capacity & performance are considered sufficient to support an expectation of continued payment performance and / or mitigating factors exist that are expected to limit the risk of near term default and loss.

Special Mention – Special Mention loans have identified potential weaknesses that are of sufficient materiality to require management’s (persistent) close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the loan or in the bank's credit position under normal business operations. Special Mention loans contain greater than acceptable risk to warrant increases in credit exposure and are thus considered “criticized”, non-pass rated credits. They may contain weaknesses (that have arisen due to deteriorating conditions since origination) and / or underwriting exceptions that are not currently offset by mitigating factors. However, these weaknesses, while sufficient to constitute significantly elevated credit risk, are not sufficient to support a conclusion that the liquidation of the debt is in significant jeopardy.

Substandard - Accruing – Substandard - Accruing loans are inadequately protected by the current sound net worth and paying capacity of the obligor(s). Loans classified as Substandard - Accruing possess one or more well-defined weaknesses that are expected to jeopardize their liquidation but the weaknesses have not progressed to a point where recent late payments on the loan have become more than 90 days past due. These loans are characterized by the distinct possibility that the bank may sustain up to a moderate but not significant level of loss if such weaknesses are not corrected. Losses for Substandard - Accruing loans are moderated by the lower likelihood of ultimate default and the existence of relatively favorable secondary repayment protection. These loans are considered “nonperforming”.

Substandard - Nonaccrual – Substandard - Nonaccrual loans are inadequately protected by the current sound net worth and paying capacity of the obligor or the collateral pledged, if any. Loans classified as Substandard - Nonaccrual possess material, well-defined weaknesses that are expected to jeopardize their liquidation and have progressed to a point where consistently late payments on the loan have become more than 90 or more days past due. These loans are characterized by the distinct possibility that the bank may sustain a material level of loss if such weaknesses are not corrected. Losses for Substandard - Nonaccrual loans are prone to being elevated based on the strong likelihood of the loan remaining in payment default and an undesirable level of secondary repayment protection. These loans are considered “nonperforming”.

Doubtful – Loans classified as Doubtful possess all of the weaknesses inherent in loans classified as Substandard - Nonaccrual with the added characteristic that the weaknesses make collection or liquidation in full highly questionable or improbable based on currently existing facts, conditions and values. A high probability of substantial loss or possible total loss exists. Loans rated as doubtful are not rated as loss because certain events may occur that could salvage at least a portion of the debt. These events include injections of capital, additions of pledged collateral or possible mezzanine debt refinancing options. However, without the occurrence of such events, total loss may be possible. No definite repayment schedule exists for these loans. The Doubtful grade is a temporary grade. If a near term recovery of a portion of the loan balance is indeterminable or unlikely to occur, the remaining balance of the loan should be written off and possible future recoveries may partially offset the full write-off of the loan. These loans are considered “nonperforming”.

Loss – Loans classified as Loss are defaulted loans with limited or immaterial recovery prospects. No loan that has not yet defaulted should be classified at this grade level. This rating level tends to be very short lived as the full balance of the loan tends to be fully written off nearly immediately after a change to this rating level. These loans are considered “nonperforming”.

The following table presents the amortized cost by segment of loans by risk category and origination date as of June 30, 2025 and gross charge-offs by origination date for the six months ended June 30, 2025:


	2025		2024		2023		2022		2021		Prior		Revolving Loans Converted to Term		Revolving		Total
Commercial and industrial:
Pass	$	383,496	$	392,666	$	204,483	$	198,892	$	159,358	$	99,114	$	49,050	$	905,219	$	2,392,278
Pass/Watch	1,462		5,425		2,044		52,762		7,200		3,328		1,521		36,826		110,568
Special Mention	—		—		18,224		1,874		3,519		548		109		20,447		44,721
Substandard - Accruing	1,582		1,043		16,622		19,492		10,924		5,789		8,629		12,087		76,168
Substandard - Nonaccrual	—		—		1,193		183		2,974		3,876		404		584		9,214
Doubtful	—		—		1,765		13,526		—		296		2,695		415		18,697

Total commercial and industrial	$	386,540	$	399,134	$	244,331	$	286,729	$	183,975	$	112,951	$	62,408	$	975,578	$	2,651,646
Gross charge-offs	$	—	$	—	$	—	$	9,452	$	83	$	875	$	144	$	1,178	$	11,732

Commercial real estate:
Non-owner occupied:
Pass	$	65,425	$	37,874	$	58,145	$	89,617	$	119,316	$	269,937	$	7,882	$	876	$	649,072
Pass/Watch	—		—		411		1,267		10,453		7,928		300		12,290		32,649
Special Mention	—		—		—		—		16,549		—		—		—		16,549
Substandard - Accruing	—		—		—		—		—		3,228		—		—		3,228
Substandard - Nonaccrual	—		—		—		—		—		4,251		—		—		4,251


Total non-owner occupied	$	65,425	$	37,874	$	58,556	$	90,884	$	146,318	$	285,344	$	8,182	$	13,166	$	705,749
Gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—

Owner occupied:
Pass	$	16,742	$	60,331	$	74,656	$	38,106	$	82,703	$	248,790	$	34,527	$	5,616	$	561,471
Pass/Watch	—		42,132		581		5,834		5,396		11,724		—		—		65,667
Special Mention	—		—		1,907		1,764		399		2,666		—		—		6,736
Substandard - Accruing	—		—		9,649		861		—		15,189		—		—		25,699
Substandard - Nonaccrual	—		—		—		—		1,125		1,422		—		—		2,547


Total owner occupied	$	16,742	$	102,463	$	86,793	$	46,565	$	89,623	$	279,791	$	34,527	$	5,616	$	662,120
Gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—

Construction & land:
Pass	$	11,232	$	37,446	$	81,364	$	165,403	$	6,664	$	7,592	$	12,709	$	33,217	$	355,627
Pass/Watch	—		—		—		3,412		—		—		—		—		3,412
Special Mention	—		—		—		24,930		—		—		—		—		24,930




Total construction & land	$	11,232	$	37,446	$	81,364	$	193,745	$	6,664	$	7,592	$	12,709	$	33,217	$	383,969
Gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—

Multifamily:
Pass	$	8,600	$	4,372	$	1,323	$	71,191	$	31,874	$	9,146	$	5,494	$	—	$	132,000
Pass/Watch	—		—		—		—		—		895		—		—		895


Substandard - Nonaccrual	—		—		—		1,625		—		—		—		—		1,625


Total multifamily	$	8,600	$	4,372	$	1,323	$	72,816	$	31,874	$	10,041	$	5,494	$	—	$	134,520
Gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—


	2025		2024		2023		2022		2021		Prior		Revolving Loans Converted to Term		Revolving		Total
Total commercial real estate:
Pass	$	101,999	$	140,023	$	215,488	$	364,317	$	240,557	$	535,465	$	60,612	$	39,709	$	1,698,170
Pass/Watch	—		42,132		992		10,513		15,849		20,547		300		12,290		102,623
Special Mention	—		—		1,907		26,694		16,948		2,666		—		—		48,215
Substandard - Accruing	—		—		9,649		861		—		18,417		—		—		28,927
Substandard - Nonaccrual	—		—		—		1,625		1,125		5,673		—		—		8,423


Total commercial real estate:	$	101,999	$	182,155	$	228,036	$	404,010	$	274,479	$	582,768	$	60,912	$	51,999	$	1,886,358
Gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—

Residential real estate:
Pass	$	88,954	$	149,953	$	127,761	$	524,429	$	104,401	$	169,585	$	3,191	$	18,390	$	1,186,664
Pass/Watch	—		—		231		7,480		5,955		6,906		59		—		20,631
Special Mention	—		—		—		632		—		431		—		—		1,063
Substandard - Accruing	—		—		—		—		—		129		—		—		129
Substandard - Nonaccrual	—		209		—		9,931		476		7,504		126		27		18,273


Total residential real estate	$	88,954	$	150,162	$	127,992	$	542,472	$	110,832	$	184,555	$	3,376	$	18,417	$	1,226,760
Gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—

Public Finance:
Pass	$	6,729	$	30,483	$	6,016	$	—	$	42,577	$	435,102	$	—	$	3,534	$	524,441






Total public finance	$	6,729	$	30,483	$	6,016	$	—	$	42,577	$	435,102	$	—	$	3,534	$	524,441
Gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	1,680	$	—	$	—	$	1,680

Consumer:
Pass	$	4,724	$	2,898	$	1,169	$	1,027	$	3,230	$	10,845	$	242	$	18,156	$	42,291
Pass/Watch	29		—		7		7		111		538		2		54		748
Special Mention	—		—		—		—		1		—		—		—		1

Substandard - Nonaccrual	—		—		—		4		36		—		—		—		40


Total consumer	$	4,753	$	2,898	$	1,176	$	1,038	$	3,378	$	11,383	$	244	$	18,210	$	43,080
Gross charge-offs	$	—	$	—	$	12	$	58	$	6	$	51	$	—	$	127	$	254

Other:
Pass	$	21,281	$	20,873	$	12,242	$	8,324	$	9,797	$	6,624	$	19,065	$	65,599	$	163,805
Pass/Watch	—		—		—		—		1,307		—		—		—		1,307

Substandard - Accruing	—		—		—		—		—		—		—		9,669		9,669



Total other	$	21,281	$	20,873	$	12,242	$	8,324	$	11,104	$	6,624	$	19,065	$	75,268	$	174,781
Gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	743	$	—	$	—	$	743

Total loans:
Pass	$	607,183	$	736,896	$	567,159	$	1,096,989	$	559,920	$	1,256,735	$	132,160	$	1,050,607	$	6,007,649
Pass/Watch	1,491		47,557		3,274		70,762		30,422		31,319		1,882		49,170		235,877
Special Mention	—		—		20,131		29,200		20,468		3,645		109		20,447		94,000
Substandard - Accruing	1,582		1,043		26,271		20,353		10,924		24,335		8,629		21,756		114,893
Substandard - Nonaccrual	—		209		1,193		11,743		4,611		17,053		530		611		35,950
Doubtful	—		—		1,765		13,526		—		296		2,695		415		18,697

Total loans	$	610,256	$	785,705	$	619,793	$	1,242,573	$	626,345	$	1,333,383	$	146,005	$	1,143,006	$	6,507,066
Gross charge-offs	$	—	$	—	$	12	$	9,510	$	89	$	3,349	$	144	$	1,305	$	14,409

The following table presents the amortized cost by segment of loans by risk category and origination date as of December 31, 2024 and gross charge-offs by origination date for the year ended December 31, 2024:


	2024		2023		2022		2021		2020		Prior		Revolving Loans Converted to Term		Revolving		Total
Commercial and industrial:
Pass	$	490,655	$	257,005	$	255,402	$	221,739	$	67,636	$	48,713	$	76,821	$	822,815	$	2,240,786
Pass/Watch	1,469		17,131		29,927		19,200		4,373		2,343		322		19,994		94,759
Special Mention	277		13,796		22,630		3,740		345		664		1,901		3,772		47,125
Substandard - Accruing	928		6,359		27,244		22,543		2,862		3,236		6,339		17,277		86,788
Substandard - Nonaccrual	—		2,235		12,689		4,100		2,895		2,459		1,584		1,707		27,669
Doubtful	—		—		—		—		415		—		230		—		645

Total commercial and industrial	$	493,329	$	296,526	$	347,892	$	271,322	$	78,526	$	57,415	$	87,197	$	865,565	$	2,497,772
Gross charge-offs	$	—	$	—	$	—	$	19,720	$	269	$	2	$	630	$	122	$	20,743

Commercial real estate:
Non-owner occupied:
Pass	$	40,289	$	62,077	$	101,213	$	126,215	$	137,151	$	190,618	$	7,919	$	20,030	$	685,512
Pass/Watch	—		—		1,305		23,343		851		6,016		—		17,386		48,901
Special Mention	—		—		—		5,953		—		—		—		—		5,953
Substandard - Accruing	—		2,711		—		—		542		3,399		1,493		—		8,145
Substandard - Nonaccrual	—		—		—		—		—		4,350		—		—		4,350


Total non-owner occupied	$	40,289	$	64,788	$	102,518	$	155,511	$	138,544	$	204,383	$	9,412	$	37,416	$	752,861
Gross charge-offs	$	—	$	—	$	—	$	—	$	270	$	11	$	—	$	—	$	281

Owner occupied:
Pass	$	102,994	$	78,583	$	64,881	$	88,399	$	90,033	$	177,733	$	21,049	$	5,273	$	628,945
Pass/Watch	—		13,933		875		5,515		19,266		3,773		—		—		43,362
Special Mention	—		—		2,268		406		1,870		6,836		—		—		11,380
Substandard - Accruing	—		577		446		—		2,516		12,269		—		—		15,808
Substandard - Nonaccrual	—		—		—		1,167		—		2,111		—		—		3,278


Total owner occupied	$	102,994	$	93,093	$	68,470	$	95,487	$	113,685	$	202,722	$	21,049	$	5,273	$	702,773
Gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	194	$	—	$	—	$	194

Construction & land:
Pass	$	15,602	$	54,903	$	199,050	$	6,749	$	3,745	$	4,414	$	3,436	$	29,998	$	317,897
Pass/Watch	—		—		3,351		—		—		15		—		—		3,366
Special Mention	—		—		41,414		—		—		—		—		—		41,414




Total construction & land	$	15,602	$	54,903	$	243,815	$	6,749	$	3,745	$	4,429	$	3,436	$	29,998	$	362,677
Gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—

Multifamily:
Pass	$	4,408	$	1,338	$	36,156	$	32,878	$	4,866	$	7,502	$	5,533	$	—	$	92,681



Substandard - Nonaccrual	—		—		1,674		—		—		—		—		—		1,674


Total multifamily	$	4,408	$	1,338	$	37,830	$	32,878	$	4,866	$	7,502	$	5,533	$	—	$	94,355
Gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—


	2024		2023		2022		2021		2020		Prior		Revolving Loans Converted to Term		Revolving		Total
Total commercial real estate:
Pass	$	163,293	$	196,901	$	401,300	$	254,241	$	235,795	$	380,267	$	37,937	$	55,301	$	1,725,035
Pass/Watch	—		13,933		5,531		28,858		20,117		9,804		—		17,386		95,629
Special Mention	—		—		43,682		6,359		1,870		6,836		—		—		58,747
Substandard - Accruing	—		3,288		446		—		3,058		15,668		1,493		—		23,953
Substandard - Nonaccrual	—		—		1,674		1,167		—		6,461		—		—		9,302


Total commercial real estate:	$	163,293	$	214,122	$	452,633	$	290,625	$	260,840	$	419,036	$	39,430	$	72,687	$	1,912,666
Gross charge-offs	$	—	$	—	$	—	$	—	$	270	$	205	$	—	$	—	$	475

Residential real estate:
Pass	$	141,409	$	138,915	$	549,022	$	108,084	$	35,720	$	151,015	$	2,405	$	15,201	$	1,141,771
Pass/Watch	—		1,405		4,731		4,148		90		6,151		62		994		17,581
Special Mention	—		—		351		—		—		601		—		—		952
Substandard - Accruing	—		—		—		—		—		86		—		—		86
Substandard - Nonaccrual	210		—		10,667		727		2,244		6,284		59		29		20,220


Total residential real estate	$	141,619	$	140,320	$	564,771	$	112,959	$	38,054	$	164,137	$	2,526	$	16,224	$	1,180,610
Gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	38	$	—	$	—	$	38

Public Finance:
Pass	$	29,860	$	19,986	$	—	$	42,558	$	130,447	$	322,066	$	—	$	2,641	$	547,558



Substandard - Nonaccrual	—		—		—		—		—		7,226		—		—		7,226


Total public finance	$	29,860	$	19,986	$	—	$	42,558	$	130,447	$	329,292	$	—	$	2,641	$	554,784
Gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—

Consumer:
Pass	$	3,949	$	1,610	$	1,333	$	3,793	$	7,464	$	4,695	$	60	$	17,665	$	40,569
Pass/Watch	—		6		37		104		182		331		1		46		707
Special Mention	—		—		—		1		—		—		—		—		1
Substandard - Accruing	—		—		—		—		—		—		4		—		4
Substandard - Nonaccrual	—		—		—		58		4		2		—		—		64


Total consumer	$	3,949	$	1,616	$	1,370	$	3,956	$	7,650	$	5,028	$	65	$	17,711	$	41,345
Gross charge-offs	$	3	$	10	$	6	$	3	$	147	$	46	$	15	$	208	$	438

Other:
Pass	$	26,745	$	18,892	$	7,664	$	10,621	$	148	$	8,339	$	129	$	110,891	$	183,429
Pass/Watch	—		—		—		3,360		—		—		—		—		3,360


Substandard - Nonaccrual	—		—		—		—		—		2,391		—		—		2,391


Total other	$	26,745	$	18,892	$	7,664	$	13,981	$	148	$	10,730	$	129	$	110,891	$	189,180
Gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—

Total loans:
Pass	$	855,911	$	633,309	$	1,214,721	$	641,036	$	477,210	$	915,095	$	117,352	$	1,024,514	$	5,879,148
Pass/Watch	1,469		32,475		40,226		55,670		24,762		18,629		385		38,420		212,036
Special Mention	277		13,796		66,663		10,100		2,215		8,101		1,901		3,772		106,825
Substandard - Accruing	928		9,647		27,690		22,543		5,920		18,990		7,836		17,277		110,831
Substandard - Nonaccrual	210		2,235		25,030		6,052		5,143		24,823		1,643		1,736		66,872
Doubtful	—		—		—		—		415		—		230		—		645

Total loans	$	858,795	$	691,462	$	1,374,330	$	735,401	$	515,665	$	985,638	$	129,347	$	1,085,719	$	6,376,357
Gross charge-offs	$	3	$	10	$	6	$	19,723	$	686	$	291	$	645	$	330	$	21,694

The following table presents information about collateral dependent loans that were individually evaluated for purposes of determining the ACL as of:


	Collateral Dependent Loans With Allowance				Collateral Dependent Loans With No Related Allowance		Total Collateral Dependent Loans
	Amortized Cost		Related Allowance		Amortized Cost		Amortized Cost		Related Allowance
June 30, 2025
Commercial & industrial	$	19,771	$	10,632	$	8,140	$	27,911	$	10,632
Commercial real estate:
Non-owner occupied	3,617		102		634		4,251		102
Owner occupied	—		—		2,547		2,547		—

Multifamily	—		—		1,625		1,625		—
Total commercial real estate	3,617		102		4,806		8,423		102
Residential real estate	2,073		219		16,200		18,273		219
Public Finance	—		—		—		—		—
Consumer	38		36		2		40		36
Other	—		—		—		—		—
Total loans	$	25,499	$	10,989	$	29,148	$	54,647	$	10,989
December 31, 2024
Commercial & industrial	$	20,890	$	8,460	$	7,424	$	28,314	$	8,460
Commercial real estate:
Non-owner occupied	—		—		4,350		4,350		—
Owner occupied	—		—		3,278		3,278		—

Multifamily	—		—		1,674		1,674		—
Total commercial real estate	—		—		9,302		9,302		—
Residential real estate	1,409		154		18,811		20,220		154
Public Finance	7,226		1,460		—		7,226		1,460
Consumer	64		64		—		64		64
Other	2,391		159		—		2,391		159
Total loans	$	31,980	$	10,297	$	35,537	$	67,517	$	10,297

The allowance related to collateral dependent loans reported in the tables above includes qualitative adjustments applied to the loan portfolio that consider possible changes in circumstances that could ultimately impact credit losses and might not be reflected in historical data or forecasted data incorporated in the quantitative models.

Loan Modifications Made to Borrowers Experiencing Financial Difficulty:

The allowance for credit losses incorporates an estimate of lifetime expected credit losses and is recorded on each asset upon origination. The starting point for the estimate of the allowance for credit losses is historical loss information, which includes losses from modifications of receivables to borrowers experiencing financial difficulty. We use a PD/LGD model to determine the allowance for credit losses. An assessment of whether a borrower is experiencing financial difficulty is made at the time of a modification. The loan modifications in the table below did not significantly impact our determination of the allowance for credit losses on loans during the three and six months ended June 30, 2025.

Because the effect of most modifications made to borrowers experiencing financial difficulty is already included in the allowance for credit losses, a change to the allowance for credit losses is generally not recorded upon modification.

Occasionally, we modify loans by providing principal forgiveness that is deemed to be uncollectible; therefore, that portion of the loan is written-off, resulting in a reduction of the amortized cost basis and a corresponding adjustment to the allowance for credit losses. Additionally, we may allow a loan to go interest only for a specified period of time.

The following tables present loan modifications for borrowers experiencing financial difficulty, segregated by modification type, regardless of whether such modifications resulted in a new loan.

For the three months ended June 30,:


	Payment Delay		Term Extension		Interest Rate Reduction		% of Total Class of Loans
2025
Commercial and industrial	$	—	$	1,814	$	—	0.1	%
Commercial real estate:

Owner occupied	1,120		—		—		0.2	%


Total commercial real estate	1,120		—		—		0.1	%
Residential real estate	—		429		—		—	%



Total loans	$	1,120	$	2,243	$	—	0.1	%
2024
Commercial and industrial	$	2,727	$	—	$	—	0.1	%
Commercial real estate:

Owner occupied	$	—	$	—	$	2,088	0.3	%


Total commercial real estate	—		—		2,088		0.1	%




Total loans	$	2,727	$	—	$	2,088	0.1	%

For the six months ended June 30,:


	Payment Delay		Term Extension		Interest Rate Reduction		% of Total Class of Loans
2025
Commercial and industrial	$	1,319	$	1,814	$	—	0.1	%
Commercial real estate:

Owner occupied	1,120		—		1,181		0.3	%


Total commercial real estate	1,120		—		1,181		0.1	%
Residential real estate	—		1,198		—		0.1	%



Total loans	$	2,439	$	3,012	$	1,181	0.1	%
2024
Commercial and industrial	$	10,227	$	—	$	—	0.4	%
Commercial real estate:

Owner occupied	—		—		2,726		0.4	%


Total commercial real estate	—		—		2,726		0.1	%




Total loans	$	10,227	$	—	$	2,726	0.2	%

There were no commitments to lend additional funds to these borrowers at June 30, 2025.

We closely monitor the performance of loan modifications made to borrowers experiencing financial difficulty to understand the effectiveness of the modification efforts. The following table depicts the performance of loan modifications made to borrowers experiencing financial difficulty that have been modified in the preceding 12 months:


	Loans Not Past Due		Loans 30-59 Days Past Due		Loans 60-89 Days Past Due		Loans Greater than 90 Days Past Due, Still Accruing		Nonaccrual		Total
June 30, 2025
Commercial and industrial	$	1,606	$	—	$	—	$	—	$	7,468	$	9,074
Commercial real estate:
Non-owner occupied	1,911		—		—		—		—		1,911
Owner occupied	6,933		—		—		—		1,120		8,053


Total commercial real estate	8,844		—		—		—		1,120		9,964
Residential real estate	1,197		—		—		—		640		1,837



Total loans	$	11,647	$	—	$	—	$	—	$	9,228	$	20,875
June 30, 2024
Commercial and industrial	$	9,916	$	—	$	—	$	—	$	311	$	10,227
Commercial real estate:

Owner occupied	3,224		—		—		—		639		3,863


Total commercial real estate	3,224		—		—		—		639		3,863




Total loans	$	13,140	$	—	$	—	$	—	$	950	$	14,090

NOTE 4 - Mortgage Servicing Rights

We have investments in mortgage servicing rights (“MSRs”) that result from the sale of loans to the secondary market for which we retain the servicing. We account for these MSRs at their fair value.

The unpaid principal loan balance of our servicing portfolio is presented in the following table as of:


	June 30, 2025		December 31, 2024
Federal National Mortgage Association	$	2,673,924	$	2,578,587
Federal Home Loan Mortgage Corporation	1,934,707		1,876,095
Government National Mortgage Association	1,329,594		1,259,513
Federal Home Loan Bank	99,145		98,582
Other	1,045		1,169
Total	$	6,038,415	$	5,813,946

The activity of MSRs carried at fair value is as follows:


	For the three months ended June 30,				For the six months ended June 30,
	2025		2024		2025		2024
Balance, beginning of period	$	82,927	$	78,416	$	84,258	$	76,701
Additions:

Servicing resulting from transfers of financial assets	4,120		3,266		6,773		5,297


Changes in fair value:
Due to changes in valuation inputs or assumptions used in the valuation model	73		821		( 1,316 )		2,094
Changes in fair value due to pay-offs, pay-downs, and runoff	( 2,384 )		( 1,759 )		( 4,979 )		( 3,348 )
Balance, end of period	$	84,736	$	80,744	$	84,736	$	80,744

The following represents the weighted-average key assumptions used to estimate the fair value of MSRs as of:


	June 30, 2025		December 31, 2024		June 30, 2024
Discount rate	10.00	%	10.09	%	10.14	%
Total prepayment speeds	8.57	%	7.90	%	8.14	%
Cost of servicing each loan	$ 91 /per loan		$ 92 /per loan		$ 91 /per loan

Total servicing and ancillary fees earned from the mortgage servicing portfolio is presented in the following table:


	For the three months ended June 30,				For the six months ended June 30,
	2025		2024		2025		2024
Servicing fees	$	4,409	$	3,940	$	8,669	$	7,825
Late and ancillary fees	231		215		476		434
Total	$	4,640	$	4,155	$	9,145	$	8,259

NOTE 5 - Derivative Financial Instruments

Banking Derivative Financial Instruments :

We use fair value hedges to seek to manage our exposure to changes in the fair value of certain recognized assets attributable to changes in a benchmark interest rate, such as SOFR. The fair value hedges were determined to be effective during all periods presented and we expect the hedges to remain effective during their remaining terms.

Derivatives not designated as hedges are not speculative and result from a service we provide to certain customers. We execute interest rate swaps with banking customers to facilitate their respective risk management strategies. Those interest rate swaps are simultaneously offset by derivatives that we execute with a third-party, such that we minimize our net risk exposure resulting from such transactions. As the interest rate derivatives associated with this program do not meet the strict hedge accounting requirements, changes in the fair value of both the customer derivatives and the offsetting derivatives are recognized directly in earnings.

Derivative instruments are measured at fair value and recorded as a component of prepaid expenses and other assets and accrued expenses and other liabilities.

The components of our banking derivative financial instruments consisted of the following as of:


	Number of Transactions	Expiration Dates	Outstanding Notional		Estimated Fair Value
June 30, 2025
Derivative financial instruments designated as hedging instruments:
Assets:
Interest Rate Products	33	2028 - 2036	$	164,313	$	8,479


Derivative financial instruments not designated as hedging instruments:
Assets:
Interest Rate Products	63	2025 - 2037	$	572,741	$	17,037
Other	5	2028	$	16,147	$	11
Liabilities:
Interest Rate Products	63	2025 - 2037	$	572,741	$	17,068
Other	6	2027 - 2029	$	53,162	$	65
December 31, 2024
Derivative financial instruments designated as hedging instruments:
Assets:
Interest Rate Products	36	2029 - 2034	$	175,967	$	13,452


Derivative financial instruments not designated as hedging instruments:
Assets:
Interest Rate Products	57	2025 - 2037	$	502,080	$	22,062
Other	1	2025	$	7,759	$	—
Liabilities:
Interest Rate Products	57	2025 - 2037	$	502,080	$	21,830
Other	5	2027 - 2028	$	38,756	$	31

We recorded gains and losses on banking derivative assets and liabilities as follows:


	For the three months ended June 30,				For the six months ended June 30,
	2025		2024		2025		2024
Recorded gain (loss) on banking derivative assets	$	727	$	3,257	$	( 1,647 )	$	9,642
Recorded (loss) gain on banking derivative liabilities	$	( 859 )	$	( 3,251 )	$	1,432	$	( 9,483 )

For the three months ended June 30, 2025 and 2024, our banking derivative financial instruments not designated as hedging instruments generated fee income of $ 329 and $ 443 , respectively. For the six months ended June 30, 2025 and 2024 our banking derivative financial instruments not designated as hedging instruments generated fee income of $ 794 , and $ 474 , respectively.

The carrying amount of hedged loans receivable as of June 30, 2025 and December 31, 2024 was $ 156,411 and $ 170,166 , respectively. The cumulative amount of fair value hedging adjustment included in the carrying amount of the hedged loans receivable as of June 30, 2025 and December 31, 2024 was $( 5,808 ) and $( 9,169 ), respectively. The fair value hedging adjustment included in other noninterest income for the three months ended June 30, 2025 and 2024 was $ 1,145 and $ 241 , respectively. The fair value hedging adjustment included in other noninterest income for the six months ended June 30, 2025 and 2024 was $ 3,361 and $( 1,353 ), respectively.

The carrying amount of hedged available-for-sale debt securities as of June 30, 2025 and December 31, 2024 was $ 37,760 and $ 37,749 , respectively. The cumulative amount of fair value hedging adjustment included in the amortized cost amount of the hedged available-for-sale debt securities as of as of June 30, 2025 and December 31, 2024 was $( 2,673 ), and $( 4,285 ), respectively. The fair value hedging adjustment included in interest income for the three months ended June 30, 2025 and 2024 was $ 537 and $( 182 ), respectively. The fair value hedging adjustment included in interest income for the six months ended June 30, 2025 and 2024 was $ 1,612 and $( 1,455 ), respectively.

Credit-risk-related Contingent Features :

We have agreements with each of our derivative counterparties that contain a provision where if we either default or are capable of being declared in default on any of our indebtedness, then we could also be declared in default on our derivative obligations.

We also have agreements with our derivative counterparties that contain a provision where if we fail to maintain our status as a well-capitalized institution, then our derivative counterparties have the right but not the obligation to terminate existing swaps. As of June 30, 2025 and December 31, 2024, the fair value of derivatives in a net liability position, which includes accrued interest but excludes any adjustment for nonperformance risk, related to these agreements was $ 17,455 and $ 22,391 , respectively. As of June 30, 2025 and December 31, 2024, we have minimum collateral posting thresholds with our derivative counterparties and have posted collateral of $ 5,890 , respectively. If we had breached any of these provisions at June 30, 2025, we could have been required to settle our obligations under the agreements at their termination value of $ 17,455 .

Mortgage Banking Derivative Financial Instruments :

The components of our mortgage banking derivative financial instruments consisted of the following as of:


	Expiration Dates	Outstanding Notional		Estimated Fair Value
June 30, 2025
Derivative financial instruments
Assets:
Futures	2025	$	79,500	$	1,761

Interest rate lock commitments (IRLC)	2025	$	87,399	$	1,155
Liabilities:
Forward MBS trades	2025	$	126,000	$	1,043


December 31, 2024
Derivative financial instruments
Assets:

Forward MBS trades	2025	$	86,000	$	464
Interest rate lock commitments (IRLC)	2025	$	44,701	$	110
Liabilities:

Futures	2025	$	44,900	$	1,002

We recorded gains and losses on mortgage banking derivative assets and liabilities as follows:


	For the three months ended June 30,				For the six months ended June 30,
	2025		2024		2025		2024
Recorded gain (loss) on mortgage banking derivative assets	$	1,360	$	( 1,065 )	$	3,808	$	( 1,007 )
Recorded loss on mortgage banking derivative liabilities	$	( 2,318 )	$	—	$	( 2,729 )	$	—

NOTE 6 - Deposits

The composition of our deposits is as follows as of:


	June 30, 2025		December 31, 2024
Noninterest-bearing demand deposit accounts	$	1,706,678	$	1,541,158
Interest-bearing deposit accounts:
Interest-bearing demand accounts	745,750		685,865
Savings accounts and money market accounts	3,166,466		2,834,123
NOW accounts	52,005		45,539
Certificate of deposit accounts:
Less than $100	728,497		781,109
$100 through $250	340,955		388,571
Greater than $250	359,813		395,895
Total interest-bearing deposit accounts	5,393,486		5,131,102
Total deposits	$	7,100,164	$	6,672,260

The following table summarizes the interest expense incurred on our deposits:


	For the three months ended June 30,				For the six months ended June 30,
	2025		2024		2025		2024
Interest-bearing deposit accounts:
Interest-bearing demand accounts	$	6,317	$	5,759	$	11,892	$	10,478
Savings accounts and money market accounts	16,640		11,213		30,415		21,884
NOW accounts	128		137		252		279
Certificate of deposit accounts	14,100		21,375		29,020		42,233
Total interest-bearing deposit accounts	$	37,185	$	38,484	$	71,579	$	74,874

The remaining maturity on certificate of deposit accounts is as follows as of:


	June 30, 2025
Remainder of 2025	$	1,290,735
2026	119,911
2027	9,600
2028	3,698
2029	2,689
2030	1,340
Thereafter	1,292
Total certificate of deposit accounts	$	1,429,265

NOTE 7 - Debt

FHLB advances

The following is a breakdown of our FHLB advances and other borrowings outstanding as of:


	June 30, 2025		December 31, 2024
	Amount		Weighted Average Rate	Amount		Weighted Average Rate
Variable rate line-of-credit advance	$	—	N/A	$	—	N/A
Fixed rate term advance	—		N/A	135,000		4.60 %
	$	—		$	135,000

Our FHLB advances are typically considered short-term borrowings with maturities less than one year and are used to manage liquidity as needed. Maturing advances are replaced by drawing on available cash, making additional borrowings or through increased customer deposits. The advances were collateralized by $ 2,627,730 and $ 2,733,150 of loans pledged to the FHLB as of June 30, 2025 and December 31, 2024, respectively.

As of June 30, 2025 and December 31, 2024, the Bank had total borrowing capacity with the FHLB that is based on qualified collateral lending values of $ 1,437,033 and $ 1,669,888 , respectively. Our additional borrowing availability with the FHLB at June 30, 2025 was $ 1,333,895 . These borrowings can be in the form of additional term advances or a line-of-credit.

FRB advances

We also had a $ 2,120,854 line-of-credit with the FRB. The agreement bears interest at the Fed Funds target rate plus 0.50 % and is secured by $ 2,537,559 of investment securities and loans pledged to the FRB as collateral. No amounts were drawn on the line-of-credit as of June 30, 2025.

Other borrowings

We have lines-of-credit with certain other financial institutions totaling $ 160,000 as of June 30, 2025. No amounts were drawn on these lines-of-credit at June 30, 2025.

Subordinated Debt

Subordinated Notes - 2020

In June and August 2020, we issued a total of $ 40,000 subordinated notes. The notes pay interest at a fixed rate of 6.00 % through June 30, 2025 and subsequently, until maturity, pay interest at a floating rate of three month term SOFR plus 5.89 %, reset quarterly. Interest is payable quarterly on January 1, April 1, July 1 and October 1 of each year. Such notes are due on July 1, 2030. The notes are not redeemable within the first five years of issuance, except under certain limited conditions. After five years , we may redeem the notes at our discretion. We incurred and capitalized $ 933 of costs related to the issuance of the subordinated notes. The amortization associated with the capitalized issuance costs is no t significant for the periods presented.

Subordinated Note - 2022

On January 13, 2022, we issued a subordinated note totaling $ 25,000 . The note pays interest at a fixed rate of 3.375 % through January 15, 2027 and subsequently, until maturity, pays interest at a floating rate of three month term SOFR plus 2.03 %, reset quarterly. Interest is payable on July 15 and January 15 of each year. Such note is due on January 15, 2032. The note is not redeemable within the first five years of issuance, except under certain limited conditions. After five years , we may redeem the note at our discretion. We incurred and capitalized $ 534 of costs related to the issuance of the subordinated note. The amortization associated with the capitalized issuance costs is no t significant for the periods presented.

Trust preferred securities

We have issued $ 9,279 in trust preferred securities through a special-purpose trust, New Mexico Banquest Capital Trust I (“NMBCT I”). In addition, we have issued $ 4,640 in trust preferred securities through a special purpose trust, New Mexico Banquest Capital Trust II (“NMBCT II”, and together with NMBCT I, collectively referred to as “NMBCT Trusts”). Interest is payable quarterly at a rate of three-month term SOFR plus 3.35 % ( 7.91 % and

8.91 % as of June 30, 2025 and 2024, respectively) for the trust preferred securities issued through NMBCT I and at a rate of three-month term SOFR plus 2.00 % ( 6.59 % and 7.59 % as of June 30, 2025 and 2024, respectively) for the trust preferred securities issued through NMBCT II.

This subordinated debt of $ 13,919 was originally recorded at a discount of $ 4,293 . The accretion associated with the fair value discount is not significant for the periods presented.

The Parent Company fully and unconditionally guarantees the obligations of the NMBCT Trusts on a subordinated basis. The trust preferred securities issued through the NMBCT Trusts are mandatorily redeemable upon the maturity of the debentures on December 19, 2032 and November 23, 2034, respectively, and are optionally redeemable, in part or in whole, by the Parent Company at each quarterly interest payment date. The Parent Company owns all of the outstanding common securities of the NMBCT Trusts, which have an aggregate liquidation valuation amount of $ 419 and is recorded in prepaid expenses and other assets on the consolidated balance sheet. The NMBCT Trusts are considered variable interest entities. Since the Parent Company is not the primary beneficiary of the NMBCT Trusts, the financial statements of the NMBCT Trusts are not included in our consolidated financial statements.

NOTE 8 - Earnings Per Share

Basic earnings per share, excluding dilution, is computed by dividing earnings available to common stockholders by the weighted average number of shares of common stock outstanding during the period. Diluted earnings per share reflects the potential dilution that could occur if securities or other contracts to issue common stock were exercised and converted into common stock or resulted in the issuance of common stock that could then share in our earnings.

The following table sets forth the computation of basic and diluted earnings per share of common stock:


	For the three months ended June 30,				For the six months ended June 30,
	2025		2024		2025		2024
Net income applicable to common stockholders	$	26,386	$	24,560	$	49,955	$	36,856
Weighted Average Shares
Weighted average common shares outstanding	27,783,710		27,430,761		27,753,098		27,224,968
Effect of dilutive securities
Stock-based awards	448,609		601,195		510,845		600,221

Weighted average diluted common shares	28,232,319		28,031,956		28,263,943		27,825,189
Earnings per common share
Basic earnings per common share	$	0.95	$	0.90	$	1.80	$	1.35
Effect of dilutive securities
Stock-based awards	( 0.02 )		( 0.02 )		( 0.03 )		( 0.03 )
Diluted earnings per common share	$	0.93	$	0.88	$	1.77	$	1.32

Long-term incentive plan grants for 70,496 shares of common stock were not considered in computing diluted earnings per share for the three months ended June 30, 2025, because they were antidilutive. Long-term incentive plan grants for 33,194 shares of common stock were not considered in computing diluted earnings per share for the six months ended June 30, 2025, because they were antidilutive. There were no antidilutive shares for the three months or six months ended June 30, 2024.

NOTE 9 - Stockholders’ Equity

As of June 30, 2025 and December 31, 2024, the Company has 10,000,000 shares of preferred stock authorized, $ 0.0001 par value, of which none were issued or outstanding, respectively.

As of June 30, 2025 and December 31, 2024, the Company has 50,000,000 shares of common stock authorized, $ 0.0001 par value, of which 27,834,525 and 27,709,679 shares were issued and outstanding, respectively.

Equity Incentive Plans :

2017 Equity Incentive Plan

The 2017 Equity Incentive Plan (the “2017 Plan”) provides for the grant of stock options, stock appreciation rights, restricted stock and other stock awards to its employees, directors and consultants for up to 1,977,292 shares of FirstSun common stock in the aggregate.

Option awards are generally granted with an exercise price of not less than the fair value of a share of the Company’s common stock at the date of grant, they vest 25 % on the first, second, third and fourth anniversaries following the date of grant and have 10 year terms. The fair value of each stock option award is estimated on the date of grant utilizing the Black-Scholes option pricing model. Expected volatility is determined based on the median historical volatility of 25 to 30 comparable companies that were publicly traded for a period commensurate with the expected term of the options. The expected term of the options is estimated to be the average of the vesting term and time to expiration. The risk-free rate for the expected term of the stock options is based on the U.S. Treasury yield curve in effect at the date of grant.

The following table presents stock options outstanding as of and for the six months ended June 30, 2025:


	Shares	Weighted-Average Exercise Price, per Share		Weighted-Average Remaining Term (years)

Outstanding, beginning of period	882,570	$	20.39
Exercised	( 146,860 )	20.77
Granted	—	—
Forfeited	—	—
Outstanding, vested, and exercisable, end of period	735,710	$	20.32	2.77

At June 30, 2025, the outstanding options were fully vested. At June 30, 2025 and 2024, the intrinsic value of the stock options was $ 10,319 and $ 17,439 , respectively.

2021 Equity Incentive Plan

The FirstSun Capital Bancorp 2021 Equity Incentive Plan (the “2021 Plan”) provides for the grant of stock options, stock appreciation rights, restricted stock and other stock awards to its employees, directors and consultants for up to 2,476,571 shares of FirstSun common stock in the aggregate. Additionally, we established the FirstSun Capital Bancorp Long-Term Incentive Plan (“LTIP”), which became effective April 1, 2022. The LTIP is intended to qualify as a “top-hat” plan under ERISA that is unfunded and provides benefits only to a select group of management or highly compensated employees of FirstSun or the Bank.

In April 2025, we granted 71,012 shares of restricted stock with a service condition and 71,001 shares of restricted stock with a market condition and service condition under the LTIP that, subject to the achievement of service and market conditions, will fully vest in March 2028. At June 30, 2025, there was $ 4,703 of total unrecognized compensation cost related to the non-vested restricted stock granted.

During the three months and six months ended June 30, 2025, we granted 40,351 and 44,627 shares of restricted stock with service conditions, respectively. During the three months and six months ended June 30, 2025, 2,558 and 2,558 shares of restricted stock with service conditions were forfeited, respectively. At June 30, 2025, there was $ 1,170 of total unrecognized compensation cost related to the non-vested restricted stock granted.

In April 2024, we granted performance-based shares of restricted stock under the LTIP that, subject to the achievement of performance conditions, will fully vest in March 2027. At June 30, 2025, based upon the probability that the performance conditions will be achieved, we determined that 84,150 shares will be issued. At June 30, 2025, there was $ 1,743 of total unrecognized compensation cost related to the non-vested restricted stock granted on these probable future issuances.

In March 2024, we granted 11,739 shares of restricted stock that fully vested in March 2025.

In May 2023, we granted performance-based shares of restricted stock under the LTIP that, subject to the achievement of performance conditions, will fully vest in April 2026. At June 30, 2025, based upon the probability that the performance conditions will be achieved, we determined that 77,873 shares will be issued. At June 30, 2025, there was $ 545 of total unrecognized compensation cost related to the non-vested restricted stock granted on these probable future issuances.

For the three months ended June 30, 2025, and 2024, we recorded total compensation cost from the 2017 and 2021 Plans of $ 1,056 and $ 772 , respectively. For the six months ended June 30, 2025, and 2024, we recorded total compensation cost from the 2017 and 2021 Plans of $ 1,692 and $ 1,264 , respectively.

Acquired Equity Incentive Plans

In conjunction with the Pioneer Bancshares, Inc. merger, we assumed certain options that had been granted under Pioneer’s option plans. All assumed options were fully vested and exercisable. No further options will be granted under the Pioneer plans. The following table presents stock options outstanding as of and for the six months ended June 30, 2025:



	Shares	Weighted-Average Exercise Price, per Share		Weighted-Average Remaining Term (years)

Outstanding, beginning of year	74,919	$	22.76

Exercised	—	—
Granted	—	—
Forfeited	—	—
Outstanding, vested, and exercisable, end of period	74,919	$	22.76	2.52

At June 30, 2025 and 2024, the intrinsic value of the stock options was $ 868 and $ 1,243 , respectively.

NOTE 10 - Income Taxes

The provision for income taxes in interim periods requires us to make an estimate of the effective tax rate expected to be applicable for the full year, adjusted for any discrete items for the applicable period. This estimated effective tax rate is then applied to interim consolidated pre-tax operating income to determine the interim provision for income taxes.

The provision for income tax is summarized as follows:


	For the three months ended June 30,						For the six months ended June 30,
	2025			2024			2025			2024



Provision for income taxes	$	6,576		$	6,538		$	12,692		$	9,528
Effective tax provision rate	20.0		%	21.0		%	20.3		%	20.5		%

We do not believe that we have any material uncertain tax positions, and do not expect any material changes during the next twelve months.

NOTE 11 - Regulatory Capital Matters

Banks and bank holding companies are subject to regulatory capital requirements administered by federal banking agencies. Capital adequacy guidelines and, additionally for banks, prompt corrective action regulations involve quantitative measures of assets, liabilities, and certain off-balance sheet items calculated under regulatory accounting practices. Capital amounts and classifications are also subject to qualitative judgments by regulators. Failure to meet capital requirements can initiate regulatory action.

Under the Basel III rules, the Parent Company and the Bank must hold a capital conservation buffer above the adequately capitalized risk-based capital ratios. The fully phased in capital conservation buffer is 2.50% for all periods presented.

The net unrealized gain or loss on available for sale securities is not included in computing regulatory capital. As of June 30, 2025, both the Parent Company and the Bank met all capital adequacy requirements to which they were subject.

Prompt corrective action regulations provide five classifications: well-capitalized, adequately capitalized, undercapitalized, significantly undercapitalized, and critically undercapitalized, although these terms are not used to represent overall financial condition. If adequately capitalized, regulatory approval is required to accept brokered deposits. If undercapitalized, capital distributions are limited, as is asset growth and expansion, and capital restoration plans are required. As of June 30, 2025 and December 31, 2024, the most recent regulatory notifications categorized the Bank as well-capitalized under the regulatory framework for prompt corrective action. There are no conditions or events since that notification that management believes have changed the Bank’s category.

Actual and required capital amounts for the Parent Company are as follows as of:


	Actual				For Capital Adequacy Purposes				To be Well- Capitalized under Prompt Corrective Action Provisions
	Amount		Ratio		Amount		Ratio		Amount	Ratio
June 30, 2025
Total risk-based capital to risk-weighted assets:	$	1,174,502	15.94	%	$	589,412	8.00	%	N/A	N/A
Tier 1 risk-based capital to risk-weighted assets:	$	1,015,386	13.78	%	$	442,059	6.00	%	N/A	N/A
Common Equity Tier 1 (CET 1) to risk-weighted assets:	$	1,015,386	13.78	%	$	331,545	4.50	%	N/A	N/A
Tier 1 leverage capital to average assets:	$	1,015,386	12.39	%	$	327,921	4.00	%	N/A	N/A
December 31, 2024
Total risk-based capital to risk-weighted assets:	$	1,128,334	15.42	%	$	585,567	8.00	%	N/A	N/A
Tier 1 risk-based capital to risk-weighted assets:	$	964,517	13.18	%	$	439,175	6.00	%	N/A	N/A
Common Equity Tier 1 (CET 1) to risk-weighted assets:	$	964,517	13.18	%	$	329,381	4.50	%	N/A	N/A
Tier 1 leverage capital to average assets:	$	964,517	12.11	%	$	318,646	4.00	%	N/A	N/A

Actual and required capital amounts for the Bank are as follows as of:


	Actual				For Capital Adequacy Purposes				To be Well- Capitalized under Prompt Corrective Action Provisions
	Amount		Ratio		Amount		Ratio		Amount		Ratio
June 30, 2025
Total risk-based capital to risk-weighted assets:	$	1,069,097	14.53	%	$	588,464	8.00	%	$	735,580	10.00	%
Tier 1 risk-based capital to risk-weighted assets:	$	986,047	13.41	%	$	441,348	6.00	%	$	588,464	8.00	%
Common Equity Tier 1 (CET 1) to risk-weighted assets:	$	986,047	13.41	%	$	331,011	4.50	%	$	478,127	6.50	%
Tier 1 leverage capital to average assets:	$	986,047	12.03	%	$	327,882	4.00	%	$	409,853	5.00	%
December 31, 2024
Total risk-based capital to risk-weighted assets:	$	1,018,866	13.94	%	$	584,594	8.00	%	$	730,742	10.00	%
Tier 1 risk-based capital to risk-weighted assets:	$	930,890	12.74	%	$	438,445	6.00	%	$	584,594	8.00	%
Common Equity Tier 1 (CET 1) to risk-weighted assets:	$	930,890	12.74	%	$	328,834	4.50	%	$	474,982	6.50	%
Tier 1 leverage capital to average assets:	$	930,890	11.69	%	$	318,647	4.00	%	$	398,308	5.00	%

NOTE 12 - Fair Value Measurements

We utilize fair value measurements to record or disclose the fair value on certain assets and liabilities. Fair value is the exchange price that would be received for an asset or paid to transfer a liability (exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. The determination of fair values of financial instruments often requires the use of estimates. In cases where quoted market values in an active market are not available, we use present value techniques and other valuation methods to estimate the fair values of our financial instruments. These valuation models rely on market-based parameters when available, such as interest rate yield curves or credit spreads. Unobservable inputs may be based on management’s judgment assumptions and estimates related to credit quality, our future earnings, interest rates and other relevant inputs. These valuation methods require considerable judgment and the resulting estimates of fair value can be significantly affected by the assumptions made and the methods used.

ASC Topic 820 establishes a three-level valuation hierarchy for disclosure of fair value measurements. The hierarchy is based on the transparency of the inputs used in the valuation process with the highest priority given to quoted prices available in active markets and the lowest priority to unobservable inputs where no active market exists. The three levels of inputs that may be used to measure fair value are as follows:

Level 1 : Unadjusted quoted prices in active markets for identical assets or liabilities that the reporting entity has the ability to access at the measurement date.

Level 2 : Inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly or indirectly. These might include quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the asset or liability (such as interest rates, volatilities, prepayment speeds, credit risks, etc.) or inputs that are derived principally from or corroborated by market data by correlation or other means.

Level 3 : Unobservable inputs for determining the fair values of assets or liabilities that reflect an entity’s own beliefs about the assumptions that market participants would use in pricing the assets or liabilities.

A financial instrument’s categorization within the valuation hierarchy is based upon the lowest level of input within the valuation hierarchy that is significant to the overall fair value measurement. Transfers between levels of the fair value hierarchy are recognized at the end of the reporting period.

The following table sets forth our assets and liabilities measured at fair value on a recurring basis as of:


	Level 1		Level 2		Level 3
	Quoted prices in active markets for identical assets		Significant other observable inputs		Significant unobservable inputs		Total Estimated Fair Value
June 30, 2025
Available-for-sale securities	$	32,605	$	440,863	$	—	$	473,468
Loans held-for-sale	—		90,781		—		90,781
Mortgage servicing rights	—		—		84,736		84,736
Derivative financial instruments - assets	—		28,443		—		28,443
Derivative financial instruments - liabilities	—		( 18,176 )		—		( 18,176 )
Total	$	32,605	$	541,911	$	84,736	$	659,252

December 31, 2024
Available-for-sale securities	$	31,730	$	437,346	$	—	$	469,076
Loans held-for-sale	—		61,825		—		61,825
Mortgage servicing rights	—		—		84,258		84,258
Derivative financial instruments - assets	—		36,088		—		36,088
Derivative financial instruments - liabilities	—		( 22,863 )		—		( 22,863 )
Total	$	31,730	$	512,396	$	84,258	$	628,384

For further details on our Level 3 inputs related to MSRs, see Note 4 - Mortgage Servicing Rights .

The following table presents a reconciliation for our Level 3 assets measured at fair value on a recurring basis:


	For the three months ended June 30,				For the six months ended June 30,
	2025		2024		2025		2024
Balance, beginning of period	$	82,927	$	78,416	$	84,258	$	76,701
Total losses included in earnings	( 2,311 )		( 938 )		( 6,295 )		( 1,254 )
Purchases, issuances, sales and settlements:

Issuances	4,120		3,266		6,773		5,297


Balance, end of period	$	84,736	$	80,744	$	84,736	$	80,744

Certain financial assets and financial liabilities are regularly measured at fair value on a nonrecurring basis; that is, the instruments are not measured at fair value on an ongoing basis but are subject to fair value adjustments in certain circumstances. Financial assets measured at fair value on a non-recurring basis during the reported periods include certain collateral dependent loans reported at the fair value of the underlying collateral if repayment is expected solely from the collateral and other real estate owned and foreclosed assets, which, upon initial recognition, were remeasured and reported at fair value through a charge-off to the allowance for credit losses, and subsequent to their initial recognition, were remeasured at fair value through a write-down included in other non-interest expense. The following table sets forth our assets and liabilities that were measured at fair value on a non-recurring basis as of:


	Level 3
	June 30, 2025		December 31, 2024
Collateral dependent loans:
Commercial and industrial	$	9,139	$	12,430
Commercial real estate	3,515		—
Residential real estate	1,854		1,255
Public finance	—		5,766
Consumer	2		—
Other	—		2,232
Total collateral dependent loans	$	14,510	$	21,683

Other real estate owned and foreclosed assets, net:

Commercial real estate	$	3,660	$	2,911
Residential real estate	2,417		2,227
Public finance	5,301		—

Other	1,674		—
Total other real estate owned and foreclosed assets, net:	$	13,052	$	5,138

The fair value of the financial assets in the table above utilizes the market approach valuation technique, with discount adjustments for differences between comparable sales.

Fair value of financial instruments not carried at fair value:

The carrying amounts and estimated fair values of financial instruments not carried at fair value are as follows as of:


			Estimated Fair Value
	Carrying Value		Total		Level 1		Level 2		Level 3
June 30, 2025
Assets:
Cash and cash equivalents	$	785,115	$	785,115	$	785,115	$	—	$	—
Securities held-to-maturity	34,581		28,973		—		28,973		—
Loans (excluding collateral dependent loans)	6,452,419		6,365,068		—		—		6,365,068
Restricted equity securities	24,776		24,776		—		24,776		—
Accrued interest receivable	33,904		33,904		—		2,295		31,609

Liabilities:
Deposits (excluding demand deposits)	$	4,647,736	$	4,641,513	$	3,218,471	$	1,423,042	$	—
Securities sold under agreements to repurchase	11,173		11,173		—		11,173		—



Subordinated debt, net	76,066		73,672		—		73,672		—
Accrued interest payable	7,247		7,247		—		7,247		—
December 31, 2024
Assets:
Cash and cash equivalents	$	615,917	$	615,917	$	615,917	$	—	$	—
Securities held-to-maturity	35,242		29,563		—		29,563		—
Loans (excluding collateral dependent loans)	6,344,377		6,191,461		—		—		6,191,461
Restricted equity securities	28,917		28,917		—		28,917		—
Accrued interest receivable	32,102		32,102		—		2,131		29,971

Liabilities:
Deposits (excluding demand deposits)	$	4,445,237	$	4,436,305	$	2,879,662	$	1,556,643	$	—
Securities sold under agreements to repurchase	14,699		14,699		—		14,699		—
FHLB advances	135,000		135,000		—		135,000		—


Subordinated debt, net	75,841		73,326		—		73,326		—
Accrued interest payable	8,705		8,705		—		8,705		—

NOTE 13 - Segment Information

The Company’s Chief Executive Officer has been identified as the chief operating decision maker (“CODM”), who oversees the operations conducted through our 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.

The Banking segment originates loans and provides deposits and fee based services to consumer, business, and mortgage lending customers. Products offered include a full range of commercial and consumer banking and financial services. The interest income on loans held-for-investment is recognized in the Banking segment, excluding newly originated residential first mortgages within the Mortgage Operations segment.

The Mortgage Operations segment originates, sells, services, and manages market risk from changes in interest rates on one-to-four family residential mortgage loans to sell or hold on our balance sheet. Loans originated-to-sell comprise the majority of the lending activity. The Mortgage Operations segment recognizes interest income on loans that are held-for-sale and newly originated residential mortgages held-for-investment, the gains from one to four family residential mortgage sales, and revenue for servicing loans and other ancillary fees following a sales transaction. Revenue from servicing activities is earned on a contractual fee basis. The Mortgage Operations segment services loans for the held-for-investment portfolio, for which it earns revenue via an intercompany service fee allocation which appears as a cost to Banking in mortgage fees. Forward traded loan purchases and sales settlements as well as mortgage servicing rights and related fair value adjustments are reported in this segment.

Corporate represents miscellaneous other expenses of a corporate nature as well as revenue and expenses not directly assigned or allocated to the Banking or Mortgage Operations segments. The majority of executive management’s time is spent managing operating segments; related costs have been allocated between the operating segments and Corporate.

Allocations of expenses to the operating segments are based on estimated uses of those services. We use a funds transfer pricing process to allocate costs, capital and resources to each operating segment. This allows us to identify the cost of funds within each segment, measure the profitability of each segment by relating costs to revenue, and to evaluate each operating segment’s impact on consolidated earnings. Our CODM reviews net income to budgeted net income to assess segment performance on a monthly basis and to make decisions about allocating capital and personnel to the segments.

Significant segment totals are reconciled to the financial statements as follows for the three months ended June 30,:


	Banking		Mortgage Operations		Corporate		Total Segments
2025
Summary of Operations
Interest income	$	105,073	$	11,840	$	8	$	116,921
Interest expense	31,589		5,660		1,173		38,422
Net interest income (expense)	73,484		6,180		( 1,165 )		78,499

Provision for (benefit from) credit losses	4,462		38		—		4,500

Noninterest income:
Service charges on deposit accounts	2,016		—		—		2,016
Treasury management service fees	4,333		—		—		4,333
Credit and debit card fees	2,727		1		—		2,728
Trust and investment advisory fees	1,473		—		—		1,473
(Loss) income from mortgage banking services, net	( 631 )		13,905		—		13,274
Other noninterest income	3,249		—		—		3,249
Total noninterest income	13,167		13,906		—		27,073

Noninterest expense:
Salary and employee benefits	32,990		10,280		651		43,921
Occupancy and equipment	8,616		866		59		9,541

Amortization of intangible assets	578		—		—		578

Other noninterest expenses	9,309		4,351		410		14,070
Total noninterest expense	51,493		15,497		1,120		68,110

Income (loss) before income taxes	$	30,696	$	4,551	$	( 2,285 )	$	32,962

Other Information
Depreciation expense and amortization on premises and equipment	$	2,026	$	42	$	—	$	2,068
Identifiable assets	$	7,101,131	$	1,199,850	$	134,880	$	8,435,861


	Banking		Mortgage Operations		Corporate		Total Segments
2024
Summary of Operations
Interest income	$	105,241	$	9,279	$	9	$	114,529
Interest expense	35,590		4,796		1,244		41,630
Net interest income (expense)	69,651		4,483		( 1,235 )		72,899

Provision for (benefit from) credit losses	169		1,031		—		1,200

Noninterest income:
Service charges on deposit accounts	2,373		( 1 )		—		2,372
Treasury management service fees	3,631		—		—		3,631
Credit and debit card fees	2,949		1		—		2,950
Trust and investment advisory fees	1,493		—		—		1,493
(Loss) income from mortgage banking services, net	( 584 )		11,627		—		11,043
Other noninterest income	1,785		—		—		1,785
Total noninterest income	11,647		11,627		—		23,274

Noninterest expense:
Salary and employee benefits	31,009		8,430		389		39,828
Occupancy and equipment	7,845		812		44		8,701

Amortization of intangible assets	652		—		—		652
Terminated merger related expenses	276		—		770		1,046
Other noninterest expenses	9,310		4,148		190		13,648
Total noninterest expense	49,092		13,390		1,393		63,875

Income (loss) before income taxes	$	32,037	$	1,689	$	( 2,628 )	$	31,098

Other Information
Depreciation expense and amortization on premises and equipment	$	1,766	$	48	$	—	$	1,814
Identifiable assets	$	6,865,029	$	996,995	$	137,271	$	7,999,295

Significant segment totals are reconciled to the financial statements as follows for the six months ended June 30,:


	Banking		Mortgage Operations		Corporate		Total Segments
2025
Summary of Operations
Interest income	$	204,549	$	22,803	$	16	$	227,368
Interest expense	60,727		11,291		2,373		74,391
Net interest income (expense)	143,822		11,512		( 2,357 )		152,977

Provision for (benefit from) credit losses	8,524		( 224 )		—		8,300

Noninterest income:
Service charges on deposit accounts	4,043		—		—		4,043
Treasury management service fees	8,527		—		—		8,527
Credit and debit card fees	5,312		2		—		5,314
Trust and investment advisory fees	2,894		—		—		2,894
(Loss) income from mortgage banking services, net	( 1,253 )		23,582		—		22,329
Other noninterest income	5,740		( 45 )		—		5,695
Total noninterest income	25,263		23,539		—		48,802

Noninterest expense:
Salary and employee benefits	64,046		18,147		1,289		83,482
Occupancy and equipment	17,296		1,661		120		19,077

Amortization and impairment of intangible assets	1,206		—		—		1,206
Terminated merger related expenses	—		—		—		—
Other noninterest expenses	17,656		8,569		842		27,067
Total noninterest expense	100,204		28,377		2,251		130,832

Income (loss) before income taxes	$	60,357	$	6,898	$	( 4,608 )	$	62,647

Other Information
Depreciation expense and amortization on premises and equipment	$	4,022	$	81	$	—	$	4,103
Identifiable assets	$	7,101,131	$	1,199,850	$	134,880	$	8,435,861


	Banking		Mortgage Operations		Corporate		Total Segments
2024
Summary of Operations
Interest income	$	206,543	$	18,009	$	17	$	224,569
Interest expense	68,370		10,007		2,487		80,864
Net interest income (expense)	138,173		8,002		( 2,470 )		143,705

Provision for credit losses	18,033		( 333 )		—		17,700

Noninterest income:
Service charges on deposit accounts	4,717		( 1 )		—		4,716
Treasury management service fees	7,099		—		—		7,099
Credit and debit card fees	5,707		2		—		5,709
Trust and investment advisory fees	2,956		—		—		2,956
(Loss) income from mortgage banking services, net	( 1,167 )		21,712		—		20,545
Other noninterest income	5,057		—		—		5,057
Total noninterest income	24,369		21,713		—		46,082

Noninterest expense:
Salary and employee benefits	60,772		15,579		830		77,181
Occupancy and equipment	15,604		1,604		88		17,296

Amortization of intangible assets	1,467		—		—		1,467
Terminated merger related expenses	779		—		2,756		3,535
Other noninterest expenses	17,761		8,072		391		26,224
Total noninterest expense	96,383		25,255		4,065		125,703

Income (loss) before income taxes	$	48,126	$	4,793	$	( 6,535 )	$	46,384

Other Information
Depreciation expense and amortization on premises and equipment	$	3,503	$	98	$	—	$	3,601
Identifiable assets	$	6,865,029	$	996,995	$	137,271	$	7,999,295

NOTE 14 - Commitments and Contingencies

Commitments

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 loan commitments, standby letters of credit, and documentary letters of credit and involve, to varying degrees, elements of credit and interest rate risk in excess of the amount recognized in the financial statements. Our exposure to credit loss in the event of nonperformance by the other party of these loan commitments and standby letters of credit is represented by the contractual amount of those instruments. We use the same credit policies in making commitments and conditional obligations as we do for on-balance sheet financial instruments.

Undistributed portion of committed loans and unused lines of credit

Loan commitments are agreements to lend to a customer as long as there is no customer violation of any condition established in the contract. Commitments generally have fixed expiration dates or other termination clauses and may require a payment of a fee. As of June 30, 2025 and December 31, 2024, commitments included the funding of fixed-rate loans totaling $ 144,173 and $ 184,780 and variable-rate loans totaling $ 1,382,297 and $ 1,615,505 , respectively. The fixed-rate loan commitments have interest rates ranging from 1.00 % to 18.00 % at June 30, 2025 and December 31, 2024, and maturities ranging from 1 month to 18 years at June 30, 2025 and December 31, 2024.

Standby letters of credit

Standby letters of credit are conditional commitments to guarantee the performance of a customer to a third-party. The credit risk involved in issuing letters of credit is essentially the same as that involved in extending loan facilities to customers. Since many loan commitments and letters of credit expire without being drawn upon, the total commitment amount does not necessarily represent future cash requirements. We evaluate each customer’s creditworthiness on a case-by-case basis. The amount of collateral obtained, if deemed necessary upon extension of credit, is based on our credit evaluation of the counterparty. Collateral held varies but may include accounts receivable, inventory, property, plant and equipment, owner occupied real estate, and/or income-producing commercial properties. As of June 30, 2025 and December 31, 2024, our standby letters of credit commitment totaled $ 44,310 and $ 39,586 , respectively.

MPF Master Commitments

The Bank has executed MPF Master Commitments (Commitments) with the FHLB to deliver mortgage loans and to guarantee the payment of any realized losses that exceed the FHLB’s first loss account for mortgages delivered under the Commitments. The Bank receives credit enhancement fees from the FHLB for providing this guarantee and continuing to manage the credit risk of the MPF Program mortgage loans. As of June 30, 2025 and December 31, 2024, the Bank considered the amount of any of its liability for the present value of the credit enhancement fees less any expected losses in the mortgages delivered under the Commitments to be immaterial, and has not recorded a liability and offsetting receivable. As of June 30, 2025 and December 31, 2024, the maximum potential amount of future payments that the Bank would have been required to make under the Commitments was $ 4,004 and $ 3,887 , respectively. Under the Commitments, the Bank agrees to service the loans and therefore, is responsible for any necessary foreclosure proceedings. Any future recoveries on any losses would not be paid by the FHLB under the Commitments. The Bank has not experienced any material losses under these guarantees.

Contingencies

We generally sell loans to investors without recourse; therefore, the investors have assumed the risk of loss or default by the borrower. However, we are usually required by these investors to make certain standard representations and warranties relating to credit information, loan documentation, and collateral. To the extent that we do not comply with such representations, we may be required to repurchase the loans or indemnify these investors for any losses from borrower defaults. We establish reserves for potential losses related to these representations and warranties if deemed appropriate and such reserves would be recorded within accrued expenses and other liabilities. In assessing the adequacy of the reserve, we evaluate various factors including actual write-offs during the period, historical loss experience, known delinquent and other problem loans, and economic trends and conditions in the industry.

From time to time, we are a defendant in various claims, legal actions, and complaints arising in the ordinary course of business. We periodically review all outstanding pending or threatened legal proceedings and determine if such matters will have an adverse effect on our business, financial condition, results of operations or cash flows.

Litigation

Check Fraud Litigation

Rodeo Electrical Services, Inc. and its owner (collectively, “RESI”) filed a civil action against the Bank on June 23, 2020 in the Santa Fe County, New Mexico District Court. The complaint alleged that the Bank conspired with or otherwise aided a former RESI employee’s embezzlement of approximately $ 0.4 million from RESI. The complaint sought compensatory, exemplary, statutory and punitive damages, as well as payment of RESI’s legal fees and expenses. On January 18, 2024, the jury awarded RESI approximately $ 2.1 million which included punitive damages. Judgment on the jury’s award was entered on July 25, 2024. On June 6, 2025, a supplemental award of RESI’s legal fees of $ 0.8 million was entered. On June 30, 2025 the Bank filed an appeal and mediation is scheduled for August 13, 2025. We believe the judgment will be covered by insurance; therefore, the ultimate outcome will not have a material effect on the financial condition or results of operations of the Bank.

We establish reserves for contingencies, including legal proceedings, when potential losses become probable and can be reasonably estimated. While the ultimate resolution of any legal proceedings, including the matters described above, cannot be determined at this time, based on information presently available, and after consultation with legal counsel, management believes that the ultimate outcome in these above legal proceedings, either individually or in the aggregate, will not have a material adverse effect on our financial statements. It is possible, however, that future developments could result in an unfavorable outcome for or resolution of any of these proceedings, which may be material to our results of operations for a given fiscal period.

NOTE 15 - Lease Commitments

Our leases relate primarily to office space and bank branches with remaining lease terms of generally 1 to 15 years. Certain lease arrangements contain extension options which typically range from 5 to 10 years at the then fair market rental rates. As these extension options are not generally considered reasonably certain of exercise, they are not included in the lease term.


	June 30, 2025			December 31, 2024
ROU asset on leased property, gross	$	41,826		$	38,779
Accumulated amortization	( 17,900 )			( 16,303 )
ROU asset, net (included in prepaid expenses and other assets in our consolidated balance sheets)	$	23,926		$	22,476
Lease liability (included in accrued expenses and other liabilities in our consolidated balance sheets)	$	25,849		$	24,376
Weighted Average Remaining Life - Operating Leases (years)	5.00			5.09
Weighted Average Rate - Operating Leases	2.98		%	2.61		%

The following table reconciles future undiscounted lease payments due under non-cancelable operating leases to the aggregate operating lessee lease liability as of June 30, 2025:


Remainder of 2025	$	7,289
2026	5,529
2027	4,609
2028	4,143
2029	3,012
2030	3,186
Thereafter	114
Total undiscounted operating lease liability	27,882
Imputed interest	2,033
Total operating lease liability included in the accompanying balance sheet	$	25,849

Total lease expense for three months ended June 30, 2025 and 2024 was $ 2,068 and $ 1,914 , respectively. Total lease expense for the six months ended June 30, 2025 and 2024 was $ 4,104 and $ 3,838 , respectively. The components of total lease expense were as follows:


	For the three months ended June 30,				For the six months ended June 30,
	2025		2024		2025		2024
Operating leases	$	2,020	$	1,945	$	3,990	$	3,867
Short-term leases	99		47		201		94

Sublease income	( 51 )		( 78 )		( 87 )		( 123 )
Net lease expense	$	2,068	$	1,914	$	4,104	$	3,838

We do not currently have any significant finance leases in which we are the lessee, material related-party leases, leases containing residual value guarantees or restrictive covenants.

Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations of FirstSun

In this section, unless the context suggests otherwise, references to “we,” “us,” and “our” mean the combined business of FirstSun and its wholly-owned subsidiaries, Sunflower Bank, Sunflower Wealth Advisors, LLC, and FEIF Capital Partners, LLC.

The following discussion and analysis of FirstSun’s consolidated financial condition and results of operations should be read in conjunction with the unaudited consolidated financial statements and accompanying footnotes included in Item 1 of this Form 10-Q as well as our audited consolidated financial statements and footnotes for the year ended December 31, 2024 included in our 2024 Annual Report that we filed with the SEC on March 7, 2025. Historical results of operations and the percentage relationships among any amounts included, and any trends that may appear, may not indicate trends in operations or results of operations for any future periods.

Annualized ratios are presented utilizing the Actual/Actual day-count convention. Prior period annualized ratios have been recalculated to conform to the current presentation.

Comments regarding our business that are not historical facts are considered forward-looking statements that involve inherent risks and uncertainties. Actual results may differ materially from those contained in these forward-looking statements. For additional information regarding our cautionary disclosures, see the “ Cautionary Note Regarding Forward-Looking Statements ” beginning on page 3 of this report.

General Overview

FirstSun Capital Bancorp, headquartered in Denver, Colorado, is the financial holding company for Sunflower Bank, National Association, which is headquartered in Dallas, Texas and operates as Sunflower Bank and First National 1870. We conduct a full-service community banking and trust business through our wholly-owned subsidiaries—Sunflower Bank, Sunflower Wealth Advisors, LLC, and FEIF Capital Partners, LLC.

We offer a full range of relationship-focused services to meet our clients’ personal, business and wealth management financial objectives throughout Texas, Kansas, Colorado, New Mexico, Arizona, California and Washington and a mortgage lending platform with capabilities in 43 states. Our product line includes commercial and industrial loans, commercial real estate loans, residential mortgage, public finance and other consumer loans, and a variety of commercial and consumer deposit products, including noninterest-bearing accounts, interest-bearing demand products, savings accounts, money market accounts and certificates of deposit. We also offer wealth management and trust products including personal trust and agency accounts, employee benefit and retirement related trust and agency accounts, investment management and advisory agency accounts, and foundation and endowment trust and agency accounts. We also offer online banking and bill payment services, online cash management, safe deposit box rentals, debit card and ATM card services and the availability of a network of ATMs for our customers.

We operate FirstSun through two operating segments: Banking and Mortgage Operations. We also allocate certain expenses to Corporate, which is not an operating segment. The expenses included in Corporate are not deemed to be allocable to our operating segments. The operating segments have been determined based on the products and services we offer and reflect the manner in which our financial information is evaluated by management. Each of the operating segments is complementary to each other and because of the interrelationship of the segments, the information presented is not indicative of how the segments would perform if they operated as independent entities. For additional information on our segments, see Note 13 - Segment Information included in our consolidated financial statements included elsewhere in this report.

Financial Summary

Second Quarter 2025 Highlights:

• Net income of $26.4 million, $0.93 per diluted share

• Net interest margin of 4.07%

• Return on average total assets of 1.28%

• Return on average stockholders’ equity of 9.74%

• Loan growth of 1.4% annualized

• Deposit growth of 13.2% annualized

• 25.6% noninterest income to total revenue 1

Net income totaled $26.4 million for the second quarter of 2025 compared to net income of $24.6 million for the second quarter of 2024. Earnings per diluted share were $0.93 for the second quarter of 2025 compared to $0.88 for the second quarter of 2024. Adjusted net income, a non-GAAP financial measure, was $25.2 million or $0.90 per diluted share for the second quarter of 2024.

Net income totaled $50.0 million for the six months ended June 30, 2025, compared to net income of $36.9 million for the same period in 2024. Earnings per diluted share were $1.77 for the six months ended June 30, 2025 compared to $1.32 for the same period in 2024. Adjusted net income, a non-GAAP financial measure, was $39.8 million or $1.43 per diluted share for the six months ended June 30, 2024. Net income for the six months ended June 30, 2024 was negatively impacted by a $10.6 million provision for credit loss on a specific customer in our C&I loan portfolio, net of tax, or $0.38 per diluted share.

The following table sets forth certain summary financial and other information of FirstSun:


	As of and for the three months ended			As of and for the six months ended
($ in thousands, except per share amounts)	June 30, 2025				June 30, 2024			June 30, 2025			June 30, 2024
Income Statement:
Net interest income	$	78,499			$	72,899		$	152,977		$	143,705
Provision for credit losses	4,500				1,200			8,300			17,700
Noninterest income	27,073				23,274			48,802			46,082
Noninterest expense	68,110				63,875			130,832			125,703
Income before income taxes	32,962				31,098			62,647			46,384
Provision for income taxes	6,576				6,538			12,692			9,528
Net income	26,386				24,560			49,955			36,856
Adjusted net income 2	26,386				25,181			49,955			39,773
Balance Sheet:
Total assets	$	8,435,861			$	7,999,295		$	8,435,861		$	7,999,295
Total loans held-for-sale	90,781				66,571			90,781			66,571
Total loans held-for-investment	6,507,066				6,337,162			6,507,066			6,337,162
Total deposits	7,100,164				6,619,525			7,100,164			6,619,525
Total borrowed funds	76,066				220,577			76,066			220,577
Total stockholders' equity	1,095,402				996,599			1,095,402			996,599
Per Common Share Data:
Period end common shares outstanding	27,834,525				27,443,246			27,834,525			27,443,246
Weighted average common shares outstanding, basic	27,783,710				27,430,761			27,753,098			27,224,968
Basic earnings per share	$	0.95			$	0.90		$	1.80		$	1.35
Weighted average common shares outstanding, diluted	28,232,319				28,031,956			28,263,943			27,825,189
Diluted earnings per share	$	0.93			$	0.88		$	1.77		$	1.32
Adjusted diluted earnings per share 2	0.93				0.90			1.77			1.43
Cash dividends	$	—			$	—		$	—		$	—
Dividend payout ratio	—		%		—		%	—		%	—		%
Book value per share	$	39.35			$	36.31		$	39.35		$	36.31
Tangible book value per share 2	35.77				32.56			35.77			32.56
1 Total revenue is net interest income plus noninterest income.
2 See section entitled “ Non-GAAP Financial Measures and Reconciliations ” for information regarding these non-GAAP financial measures and a reconciliation to the most comparable GAAP equivalent.

1 Total revenue is net interest income plus noninterest income.


	As of and for the three months ended		As of and for the six months ended
($ in thousands, except per share amounts)	June 30, 2025			June 30, 2024		June 30, 2025		June 30, 2024
Performance Ratios:
Return on average total assets	1.28	%		1.27	%	1.24	%	0.96	%
Adjusted return on average total assets 2	1.28	%		1.30	%	1.24	%	1.04	%
Return on average stockholders' equity	9.74	%		10.08	%	9.39	%	7.66	%
Adjusted return on average stockholders’ equity 2	9.74	%		10.34	%	9.39	%	8.27	%
Return on average tangible stockholders' equity 2	10.91	%		11.51	%	10.55	%	8.85	%
Adjusted return on average tangible stockholders' equity 2	10.91	%		11.79	%	10.55	%	9.53	%
Net interest margin	4.07	%		4.04	%	4.07	%	4.03	%
Net interest margin (FTE basis) 2	4.13	%		4.10	%	4.13	%	4.09	%
Efficiency ratio	64.52	%		66.42	%	64.84	%	66.23	%
Adjusted efficiency ratio 2	64.52	%		65.33	%	64.84	%	64.37	%
Noninterest income to total revenue 1	25.6	%		24.2	%	24.2	%	24.3	%
Balance Sheet Ratios:
Loan to deposit ratio	91.6	%		95.7	%	91.6	%	95.7	%
Net charge-offs (recoveries) to average loans outstanding	0.83	%		0.13	%	0.44	%	0.62	%
Allowance for credit losses to loans	1.28	%		1.25	%	1.28	%	1.25	%
Nonperforming loans to total loans 3	0.84	%		0.99	%	0.84	%	0.99	%
Capital Ratios:
Total risk-based capital to risk-weighted assets	15.94	%		14.95	%	15.94	%	14.95	%
Tier 1 risk-based capital to risk-weighted assets	13.78	%		12.80	%	13.78	%	12.80	%
Common Equity Tier 1 (CET 1) to risk-weighted assets	13.78	%		12.80	%	13.78	%	12.80	%
Tier 1 leverage capital to average assets	12.39	%		11.83	%	12.39	%	11.83	%
Average stockholders' equity to average total assets	13.15	%		12.55	%	13.22	%	12.52	%
Tangible stockholders' equity to tangible assets 2	11.94	%		11.32	%	11.94	%	11.32	%
Tangible stockholders' equity to tangible assets reflecting net unrealized losses on HTM securities, net of tax 2	11.90	%		11.27	%	11.90	%	11.27	%
Nonfinancial Data:
Full-time equivalent employees	1,168			1,176		1,168		1,176
Banking branches	71			69		71		69
1 Total revenue is net interest income plus noninterest income.
2 See section entitled “ Non-GAAP Financial Measures and Reconciliations ” for information regarding these non-GAAP financial measures and a reconciliation to the most comparable GAAP equivalent.
3 Nonperforming loans include nonaccrual loans and accrual loans greater than 90 days past due.

Non-GAAP Financial Measures and Reconciliations

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. Management believes these non-GAAP financial measures enhance an investor’s understanding of our financial results by providing a meaningful basis for period-to-period comparisons, assisting in operating results analysis, and predicting future performance. 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 for the three and six months ended June 30, 2025, 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 that may be represented by other companies.

The following table presents GAAP to non-GAAP reconciliations:


	As of and for the three months ended			As of and for the six months ended
($ in thousands, except share and per share amounts)	June 30, 2025				June 30, 2024			June 30, 2025			June 30, 2024
Tangible stockholders’ equity to tangible assets:
Total stockholders' equity (GAAP)	$	1,095,402			$	996,599		$	1,095,402		$	996,599
Less: Goodwill and other intangible assets
Goodwill	(93,483)				(93,483)			(93,483)			(93,483)
Other intangible assets	(6,228)				(9,517)			(6,228)			(9,517)
Tangible stockholders' equity (non-GAAP)	$	995,691			$	893,599		$	995,691		$	893,599
Total assets (GAAP)	$	8,435,861			$	7,999,295		$	8,435,861		$	7,999,295
Less: Goodwill and other intangible assets
Goodwill	(93,483)				(93,483)			(93,483)			(93,483)
Other intangible assets	(6,228)				(9,517)			(6,228)			(9,517)
Tangible assets (non-GAAP)	$	8,336,150			$	7,896,295		$	8,336,150		$	7,896,295
Total stockholders' equity to total assets (GAAP)	12.99		%		12.46		%	12.99		%	12.46		%
Less: Impact of goodwill and other intangible assets	(1.05)		%		(1.14)		%	(1.05)		%	(1.14)		%
Tangible stockholders' equity to tangible assets (non-GAAP)	11.94		%		11.32		%	11.94		%	11.32		%
Tangible stockholders’ equity to tangible assets, reflecting net unrealized losses on HTM securities, net of tax:
Tangible stockholders' equity (non-GAAP)	$	995,691			$	893,599		$	995,691		$	893,599
Less: Net unrealized losses on HTM securities, net of tax	(4,238)				(3,949)			(4,238)			(3,949)
Tangible stockholders’ equity less net unrealized losses on HTM securities, net of tax (non-GAAP)	$	991,453			$	889,650		$	991,453		$	889,650
Tangible assets (non-GAAP)	$	8,336,150			$	7,896,295		$	8,336,150		$	7,896,295
Less: Net unrealized losses on HTM securities, net of tax	(4,238)				(3,949)			(4,238)			(3,949)
Tangible assets less net unrealized losses on HTM securities, net of tax (non-GAAP)	$	8,331,912			$	7,892,346		$	8,331,912		$	7,892,346

Tangible stockholders’ equity to tangible assets (non-GAAP)	11.94		%		11.32		%	11.94		%	11.32		%
Less: Net unrealized losses on HTM securities, net of tax	(0.04)		%		(0.05)		%	(0.04)		%	(0.05)		%
Tangible stockholders’ equity to tangible assets reflecting net unrealized losses on HTM securities, net of tax (non-GAAP)	11.90		%		11.27		%	11.90		%	11.27		%
Tangible book value per share:
Total stockholders' equity (GAAP)	$	1,095,402			$	996,599		$	1,095,402		$	996,599
Tangible stockholders' equity (non-GAAP)	$	995,691			$	893,599		$	995,691		$	893,599
Total shares outstanding	27,834,525				27,443,246			27,834,525			27,443,246
Book value per share (GAAP)	$	39.35			$	36.31		$	39.35		$	36.31
Tangible book value per share (non-GAAP)	$	35.77			$	32.56		$	35.77		$	32.56


	As of and for the three months ended			As of and for the six months ended
($ in thousands, except share and per share amounts)	June 30, 2025				June 30, 2024			June 30, 2025			June 30, 2024
Adjusted net income:
Net income (GAAP)	$	26,386			$	24,560		$	49,955		$	36,856
Add: Non-recurring adjustments
Terminated merger related expenses, net of tax	—				621			—			2,917




Total adjustments, net of tax	—				621			—			2,917
Adjusted net income (non-GAAP)	$	26,386			$	25,181		$	49,955		$	39,773

Adjusted diluted earnings per share:
Diluted earnings per share (GAAP)	$	0.93			$	0.88		$	1.77		$	1.32
Add: Impact of non-recurring adjustments
Terminated merger related expenses, net of tax	—				0.02			—			0.11



Adjusted diluted earnings per share (non-GAAP)	$	0.93			$	0.90		$	1.77		$	1.43
Adjusted return on average total assets:
Return on average total assets (ROAA) (GAAP)	1.28		%		1.27		%	1.24		%	0.96		%
Add: Impact of non-recurring adjustments
Terminated merger related expenses, net of tax	—		%		0.03		%	—		%	0.08		%



Adjusted ROAA (non-GAAP)	1.28		%		1.30		%	1.24		%	1.04		%
Adjusted return on average stockholders’ equity:
Return on average stockholders' equity (ROACE) (GAAP)	9.74		%		10.08		%	9.39		%	7.66		%
Add: Impact of non-recurring adjustments
Terminated merger related expenses, net of tax	—		%		0.26		%	—		%	0.61		%



Adjusted ROACE (non-GAAP)	9.74		%		10.34		%	9.39		%	8.27		%
Return on average tangible stockholders’ equity:
Return on average stockholders’ equity (ROACE) (GAAP)	9.74		%		10.08		%	9.39		%	7.66		%
Add: Impact from goodwill and other intangible assets
Goodwill	0.98		%		1.19		%	0.97		%	0.92		%
Other intangible assets	0.19		%		0.24		%	0.19		%	0.27		%
Return on average tangible stockholders’ equity (ROATCE) (non-GAAP)	10.91		%		11.51		%	10.55		%	8.85		%
Adjusted return on average tangible stockholders’ equity:
Return on average tangible stockholders' equity (ROATCE) (non-GAAP)	10.91		%		11.51		%	10.55		%	8.85		%
Add: Impact of non-recurring adjustments
Terminated merger related expenses, net of tax	—		%		0.28		%	—		%	0.68		%



Adjusted ROATCE (non-GAAP)	10.91		%		11.79		%	10.55		%	9.53		%
Adjusted total noninterest expense:
Total noninterest expense (GAAP)	$	68,110			$	63,875		$	130,832		$	125,703
Less: Non-recurring adjustments
Terminated merger related expenses	—				(1,046)			—			(3,535)


Total non-recurring adjustments	—				(1,046)			—			(3,535)
Adjusted total noninterest expense (non-GAAP)	$	68,110			$	62,829		$	130,832		$	122,168
Adjusted efficiency ratio:
Efficiency ratio (GAAP)	64.52		%		66.42		%	64.84		%	66.23		%
Less: Impact of non-recurring adjustments
Terminated merger related expenses	—		%		(1.09)		%	—		%	(1.86)		%


Adjusted efficiency ratio (non-GAAP)	64.52		%		65.33		%	64.84		%	64.37		%








Fully tax equivalent (“FTE”) net interest income and net interest margin:
Net interest income (GAAP)	$	78,499			$	72,899		$	152,977		$	143,705
Gross income effect of tax exempt income	1,204				1,156			2,396			2,475
FTE net interest income (non-GAAP)	$	79,703			$	74,055		$	155,373		$	146,180
Average earning assets	$	7,727,556			$	7,256,763		$	7,576,307		$	7,178,543
Net interest margin	4.07		%		4.04		%	4.07		%	4.03		%
Net interest margin on FTE basis (non-GAAP)	4.13		%		4.10		%	4.13		%	4.09		%

Segments

Banking

Three months ended June 30, 2025 and 2024

Income before income taxes decreased $1.3 million to $30.7 million for the second quarter of 2025, from $32.0 million for the same period in 2024. The period over period decrease was primarily due to an increase in provision for credit losses and an increase in salary and employee benefits, partially offset by an increase in net interest income. Provision for credit losses increased $4.3 million to $4.5 million for the second quarter of 2025, compared to $0.2 million for the same period in 2024, primarily due to deterioration in a couple of commercial and industrial (“C&I”) customer relationships and impacts from net portfolio downgrades, partially offset by impacts from net changes in loan portfolio balances. Salary and employee benefits increased $2.0 million to $33.0 million for the second quarter of 2025, from $31.0 million for the same period in 2024, primarily due to an increase in base pay and an increase in the fair value of investments related to our deferred compensation plan. Net interest income increased $3.8 million to $73.5 million for the second quarter of 2025, compared to $69.7 million for the same period in 2024, primarily due to an increase in average interest earning assets. Identifiable assets for our Banking segment increased $0.2 billion to $7.1 billion at June 30, 2025 from $6.9 billion at June 30, 2024. The growth in identifiable assets was primarily driven by organic growth in our loan portfolio.

Six months ended June 30, 2025 and 2024

Income before income taxes increased $12.2 million to $60.4 million for the six months ended June 30, 2025, from $48.1 million for the same period in 2024. The period over period increase was primarily due to a decrease in provision for credit losses and an increase in net interest income, partially offset by an increase in salary and employee benefits. Provision for credit losses decreased $9.5 million to $8.5 million for the six months ended June 30, 2025, compared to $18.0 million for the same period in 2024, primarily due to a $14.1 million provision for credit loss on a specific customer in our C&I loan portfolio during the six months ended June 30, 2024. Net interest income increased $5.6 million to $143.8 million for the six months ended June 30, 2025 compared to $138.2 million for the same period in 2024, primarily due to a decrease in the cost of interest-bearing liabilities, relative to a decrease in the yield on interest earning assets, as a result of a declining interest rate environment and mix shift away from certificates of deposits. Salary and employee benefits increased $3.3 million to $64.0 million for the six months ended June 30, 2025, compared to $60.8 million for the same period in 2024, primarily due to increased headcount, including the hiring of C&I bankers in Southern California.

Mortgage Operations

Three months ended June 30, 2025 and 2024

Income before income taxes increased $2.9 million to $4.6 million for the second quarter of 2025, compared to $1.7 million for the same period in 2024. The period over period increase was primarily due to an increase in revenue from mortgage banking services and increase in net interest income, partially offset by an increase in salary and employee benefits. Revenue from mortgage banking services increased $2.3 million to $13.9 million for the second quarter of 2025, compared to $11.6 million for the same period in 2024, primarily due to an increase in loan originations sold and an increase in mortgage servicing income. Net interest income increased $1.7 million to $6.2 million for the second quarter of 2025, compared to $4.5 million for the same period in 2024, primarily due to higher average balance and higher average yield on residential real estate loans. Salary and employee benefits increased $1.9 million to $10.3 million for the second quarter of 2025, compared to $8.4 million for the same period in 2024, primarily due to higher levels of variable compensation associated with an increase in mortgage loan originations. Identifiable assets for our Mortgage Operations segment increased $0.2 billion to $1.2 billion at June 30, 2025 from $1.0 billion at June 30, 2024. The growth in identifiable assets was primarily driven by organic growth in our residential mortgage portfolio.

Six months ended June 30, 2025 and 2024

Income before income taxes increased $2.1 million to $6.9 million for the six months ended June 30, 2025, compared to $4.8 million for the same period in 2024. The period over period increase was primarily due to an increase in net interest income and increase in revenue from mortgage banking services, partially offset by an increase in salary and employee benefits. Net interest income increased $3.5 million to $11.5 million for the six months ended June 30, 2025, compared to $8.0 million for the same period in 2024, primarily due to higher average balance and higher average yield on residential real estate loans. Revenue from mortgage banking services increased $1.9 million to $23.6 million for the six months ended June 30, 2025, compared to $21.7 million for the same period in 2024, primarily due to an increase in loan originations sold and an increase in mortgage servicing income. Salary and employee benefits increased $2.6 million to $18.1 million

for the six months ended June 30, 2025, compared to $15.6 million for the same period in 2024, primarily due to higher levels of variable compensation associated with an increase in mortgage loan originations.

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 generally accepted accounting principles, or “U.S. GAAP,” and conform to general practices within the banking industry. Estimates that are susceptible to significant changes include accounting for the allowance for credit losses and fair value measurements of MSRs, both of which require significant judgments by management. Actual results could result in material changes to our consolidated financial condition or consolidated 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. We have identified the determination of the allowance for credit losses and fair value measurements of MSRs 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 at least annually.

The following is a description of our critical accounting estimates and an explanation of the methods and assumptions underlying their application.

Allowance for Credit Losses - Management maintains an ACL for loans based upon management’s estimate of the lifetime expected credit losses in the loan portfolio as of the balance sheet date, excluding loans held for sale. Additionally, management maintains an ACL for held-to-maturity or available-for-sale debt securities, and other off-balance sheet credit exposures (e.g., unfunded loan commitments). For loans and unfunded loan commitments, the estimate of lifetime credit losses includes the use of quantitative models that incorporate forward-looking macroeconomic scenarios that are applied over the contractual lives of the portfolios, adjusted, as appropriate, for prepayments and permitted extension options using historical experience. For purposes of the ACL for lending commitments, such allowance is determined using the same methodology as the ACL for loans, while also taking into consideration the probability of drawdowns or funding, and whether such commitments are cancellable by us. The ACL for held-to-maturity and available-for-sale debt securities is measured using a risk-adjusted discounted cash flow approach that also considers relevant current and forward-looking economic variables and the ACL is limited to the difference between the fair value of the security and its amortized cost. Judgment is specifically applied in the determination of economic assumptions, length of the initial loss forecast period, the reversion of losses beyond the initial forecast period, usage of macroeconomic scenarios, probabilities of default, losses given default, amortization and prepayment rates, and qualitative factors, which may not be adequately captured in the loss model, as further discussed below.

The macroeconomic scenarios utilized by management include variables that have historically been key drivers of increases and decreases in credit losses. These variables include, but are not limited to, unemployment rates, housing and commercial real estate prices, gross domestic product levels, corporate bond spreads and changes in equity market prices. Management derives the economic forecasts it uses in its ACL model from Moody’s Analytics. The latter has a large team of economics, database managers and operational engineers with a history of producing monthly economic forecasts for over 25 years.

Management has currently set an initial forecast period (“reasonable and supportable period”) of four years and a reversion period of one year, utilizing a straight-line approach and reverting back to the historical macroeconomic mean. After the reversion period, a historical loss forecast period covering the remaining contractual life, adjusted for prepayments, is used based on changes in key historical economic variables during representative historical expansionary and recessionary periods. Changes in economic forecasts impact the probability of default (“PD”), loss-given default (“LGD”), and exposure at default (“EAD”) for each instrument, and therefore influence the amount of future cash flows for each instrument that management does not expect to collect.

Further, management periodically considers the need for qualitative adjustments to the ACL. Qualitative adjustments may be related to and include, but not limited to, factors such as the following: (i) management’s assessment of economic forecasts used in the model and how those forecasts align with management’s overall evaluation of current and expected economic conditions; (ii) organization specific risks such as credit concentrations, collateral specific risks, nature, and size

of the portfolio and external factors that may ultimately impact credit quality, and (iii) other limitations associated with factors such as changes in underwriting and loan resolution strategies, among others. The qualitative factors applied on June 30, 2025, and the importance and levels of the qualitative factors applied, may change in future periods depending on the level of changes to items such as the uncertainty of economic conditions and management’s assessment of the level of credit risk within the loan portfolio as a result of such changes, compared to the amount of ACL calculated by the model. The evaluation of qualitative factors is inherently imprecise and requires significant management judgment.

The ACL can also be impacted by factors outside of management’s control, which include unanticipated changes in asset quality of the portfolio, such as deterioration in borrower delinquencies, or credit scores in our residential real estate and consumer portfolio. Further, the current fair value of collateral is utilized to assess the expected credit losses when a financial asset is considered to be collateral dependent.

Our process for determining the ACL is further discussed in “Note 1 - Basis of Presentation, Description of Business and Summary of Significant Accounting Policies” in our 2024 Annual Report .

Fair Value Measurement of MSRs - Our residential mortgage servicing rights are measured at fair value on a recurring basis. We estimate the fair value of our MSRs using a process that utilizes a discounted cash flow model and analysis of current market data to arrive at the estimate. The cash flow assumptions used in the model are based on numerous factors, with the key assumptions being mortgage prepayment speeds, discount rates and cost to service that management believes are consistent with the assumptions that other similar market participants use in valuing MSRs. The change of any of these key assumptions due to market conditions or other factors could materially affect the fair value of our MSRs. We also utilize a third-party consulting firm to assist us with the valuation. Because of the nature of the valuation inputs, we classify the valuation of our MSRs as Level 3 in the fair value hierarchy. See Note 4 - Mortgage Servicing Rights for our assumptions used in valuing the MSRs. For information concerning the hypothetical sensitivity of the key assumptions under adverse changes on our MSRs, see the table under “Noninterest Income” elsewhere in the Management’s Discussion and Analysis of Financial Condition and Results of Operations in this report.

Results of Operations

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


	As of and for the three months ended June 30,			As of and for the six months ended June 30,
($ in thousands, except per share amounts)	2025			2024			2025			2024
Net interest income	$	78,499		$	72,899		$	152,977		$	143,705
Provision for credit losses	4,500			1,200			8,300			17,700
Noninterest income	27,073			23,274			48,802			46,082
Noninterest expense	68,110			63,875			130,832			125,703
Income before income taxes	32,962			31,098			62,647			46,384
Provision for income taxes	6,576			6,538			12,692			9,528
Net income	26,386			24,560			49,955			36,856

Diluted earnings per share	$	0.93		$	0.88		$	1.77		$	1.32
Return on average total assets	1.28		%	1.27		%	1.24		%	0.96		%
Return on average stockholders' equity	9.74		%	10.08		%	9.39		%	7.66		%
Net interest margin	4.07		%	4.04		%	4.07		%	4.03		%
Net interest margin - FTE basis (non-GAAP) 1	4.13		%	4.10		%	4.13		%	4.09		%
Efficiency ratio	64.52		%	66.42		%	64.84		%	66.23		%
Noninterest income to total revenue 2	25.6		%	24.2		%	24.19		%	24.28		%
1 See section entitled “ Non-GAAP Financial Measures and Reconciliations ” for information regarding non-GAAP financial measures and a reconciliation to the most comparable GAAP equivalent.
2 Total revenue is net interest income plus noninterest income.

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 income from mortgage banking services, treasury

management service fees, service charges on deposit accounts, 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 and equipment, 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.

Three months ended June 30, 2025 and 2024

Our net interest income was $78.5 million for the second quarter of 2025, an increase of $5.6 million, or 7.7%, compared to the same period in 2024. Interest income on loans increased by $0.9 million for the second quarter of 2025, compared to the same period in 2024. Interest income on investment securities decreased by $0.3 million for the second quarter of 2025, compared to the same period in 2024. Interest income on interest-bearing cash and other assets increased by $1.8 million for the second quarter of 2025, compared to the same period in 2024. Interest expense from total interest-bearing liabilities decreased by $3.2 million for the second quarter of 2025, compared to the same period in 2024.

Our net interest margin was 4.07% for the second quarter of 2025, compared to 4.04% for the same period in 2024, an increase of three basis points. We experienced a 28 basis point decrease in yield from earning assets while our total cost of funds decreased by 41 basis points, for the second quarter of 2025 as compared to the same period in 2024.

Total average loans grew to $6.6 billion at June 30, 2025, an increase of $0.2 billion or 3.7%, compared to June 30, 2024, due to organic growth in our loan portfolio. Yield on loans decreased 20 basis points for the second quarter of 2025, compared to the same period in 2024, primarily due to the declining interest rate environment and its impact on variable rate loans in the portfolio. Interest-bearing cash and other assets increased $0.2 billion, or 71.2%, for the second quarter of 2025, compared to the same period in 2024. Yield on interest-bearing cash and other assets decreased 100 basis points for the second quarter of 2025, compared to the same period in 2024, primarily due to the declining interest rate environment.

Average interest-bearing liabilities increased $0.3 billion, or 5.2%, for the second quarter of 2025, compared to the same period in 2024, primarily to support the growth in our loan portfolio. Average interest-bearing deposits increased $0.4 billion, or 8.2%, for the second quarter of 2025, compared to the same period in 2024, which included a decrease of $0.3 billion, or 17.5%, in average certificates of deposit balances. Cost of interest-bearing deposits decreased 35 basis points for the second quarter of 2025, compared to the same period in 2024, 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 $0.1 billion, or 98.2%, for the second quarter of 2025, compared to the same period in 2024. Cost of FHLB borrowings decreased 98 basis points, for the second quarter of 2025, compared to the same period in 2024.

Six months ended June 30, 2025 and 2024

Our net interest income was $153.0 million for the six months ended June 30, 2025, an increase of $9.3 million, or 6.5%, compared to the same period in 2024. Interest income on loans decreased by $0.7 million for the six months ended June 30, 2025, compared to the same period in 2024. Interest income on investment securities decreased by $0.5 million for the six months ended June 30, 2025, compared to the same period in 2024. Interest income on interest-bearing cash and other assets increased by $3.9 million for the six months ended June 30, 2025, compared to the same period in 2024. Interest expense from total interest-bearing liabilities decreased by $6.5 million for the six months ended June 30, 2025, compared to the same period in 2024.

Our net interest margin was 4.07% for the six months ended June 30, 2025, compared to 4.03% for the same period in 2024, an increase of four basis points. We experienced a 24 basis point decrease in yield from earning assets and our total cost of funds decreased by 37 basis points for the six months ended June 30, 2025, compared to the same period in 2024.

Total average loans grew to $6.5 billion at June 30, 2025, an increase of $0.2 billion, compared to June 30, 2024, primarily due to organic growth in our loan portfolio. Yield on loans decreased 18 basis points for the six months ended June 30, 2025, compared to the same period in 2024, primarily due to the declining interest rate environment and its impact on variable rate loans in the portfolio. Interest-bearing cash and other assets increased $0.3 billion, or 86.7%, for the six months ended June 30, 2025, compared to the same period in 2024. Yield on interest-bearing cash and other assets decreased 105 basis points for the six months ended June 30, 2025, compared to the same period in 2024, primarily due to the declining interest rate environment.

Average interest-bearing liabilities increased $0.2 billion, or 4.3%, for the six months ended June 30, 2025, compared to the same period in 2024. Average interest-bearing deposits increased $0.3 billion, or 6.8%, for the six months ended June 30, 2025, compared to the same period in 2024. Average FHLB borrowings decreased $0.1 billion, or 86.9%, for the six months ended June 30, 2025, compared to the same period in 2024.

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,:


	2025							2024
(In thousands)	Average Balance		Interest			Average Yield/Rate		Average Balance		Interest			Average Yield/Rate
Interest Earning Assets

Loans 1	6,620,493		106,117			6.43	%	6,384,709		105,184			6.63	%
Investment securities	510,350		4,433			3.48	%	523,545		4,772			3.67	%
Interest-bearing cash and other assets	596,713		6,371			4.28	%	348,509		4,573			5.28	%
Total earning assets	7,727,556		116,921			6.07	%	7,256,763		114,529			6.35	%
Other assets	537,156							548,465
Total assets	$	8,264,712						$	7,805,228

Interest-bearing liabilities
Demand and NOW deposits	$	793,461	$	6,445		3.26	%	$	621,343	$	5,896		3.82	%
Savings deposits	401,093		576			0.58	%	413,699		715			0.70	%
Money market deposits	2,659,342		16,064			2.42	%	2,092,449		10,498			2.02	%
Certificates of deposits	1,504,235		14,100			3.76	%	1,823,522		21,375			4.71	%
Total deposits	5,358,131		37,185			2.78	%	4,951,013		38,484			3.13	%
Repurchase agreements	9,024		36			1.61	%	16,553		47			1.16	%
Total deposits and repurchase agreements	5,367,155		37,221			2.78	%	4,967,566		38,531			3.12	%
FHLB borrowings	2,308		27			4.72	%	130,871		1,855			5.70	%
Other long-term borrowings	76,025		1,174			6.19	%	75,522		1,244			6.62	%
Total interest-bearing liabilities	5,445,488		38,422			2.83	%	5,173,959		41,630			3.24	%
Noninterest-bearing deposits	1,587,302							1,517,560
Other liabilities	145,064							133,845
Stockholders' equity	1,086,858							979,864
Total liabilities and stockholders' equity	$	8,264,712						$	7,805,228

Net interest income			$	78,499						$	72,899
Net interest spread			3.24		%					3.11		%
Net interest margin			4.07		%					4.04		%
Net interest margin - FTE basis (non-GAAP) 2			4.13		%					4.10		%
1 Includes loans held-for-investment, including nonaccrual loans, and loans held-for-sale.
2 See section entitled “ Non-GAAP Financial Measures and Reconciliations ” for information regarding non-GAAP financial measures and a reconciliation to the most comparable GAAP equivalent.

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


	2025							2024
(In thousands)	Average Balance		Interest			Average Yield/Rate		Average Balance		Interest			Average Yield/Rate
Interest Earning Assets

Loans 1	6,521,154		206,797			6.39	%	6,349,282		207,452			6.57	%
Investment securities	506,103		8,803			3.51	%	535,252		9,259			3.48	%
Interest-bearing cash and other assets	549,050		11,768			4.32	%	294,009		7,858			5.37	%
Total earning assets	7,576,307		227,368			6.05	%	7,178,543		224,569			6.29	%
Other assets	543,032							548,553
Total assets	$	8,119,339						$	7,727,096

Interest-bearing liabilities
Demand and NOW deposits	$	757,282	$	12,144		3.23	%	$	585,417	$	10,757		3.70	%
Savings deposits	400,948		1,145			0.58	%	417,791		1,440			0.69	%
Money market deposits	2,551,141		29,270			2.31	%	2,077,885		20,444			1.98	%
Certificates of deposits	1,525,814		29,020			3.84	%	1,819,075		42,233			4.67	%
Total deposits	5,235,185		71,579			2.76	%	4,900,168		74,874			3.07	%
Repurchase agreements	9,318		73			1.59	%	18,904		104			1.11	%
Total deposits and repurchase agreements	5,244,503		71,652			2.76	%	4,919,072		74,978			3.07	%
FHLB borrowings	15,823		362			4.61	%	120,824		3,396			5.65	%
Other long-term borrowings	75,966		2,377			6.31	%	75,456		2,490			6.64	%
Total interest-bearing liabilities	5,336,292		74,391			2.81	%	5,115,352		80,864			3.18	%
Noninterest-bearing deposits	1,559,878							1,510,134
Other liabilities	150,172							134,106
Stockholders’ equity	1,072,997							967,504
Total liabilities and stockholders’ equity	$	8,119,339						$	7,727,096

Net interest income			$	152,977						$	143,705
Net interest spread			3.24		%					3.11		%
Net interest margin			4.07		%					4.03		%
Net interest margin - FTE basis (non-GAAP) 2			4.13		%					4.09		%
1 Includes loans held-for-investment, including nonaccrual loans, and loans held-for-sale.
2 See section entitled “ Non-GAAP Financial Measures and Reconciliations ” for information regarding non-GAAP financial measures and a reconciliation to the most comparable GAAP equivalent.

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.


	For the three months ended June 30,
	2025 Versus 2024 Increase (Decrease) Due to:
(In thousands)	Rate		Volume		Total
Interest Earning Assets

Loans 1	$	(3,058)	$	3,991	$	933
Investment securities	(225)		(114)		(339)
Interest-bearing cash	(990)		2,788		1,798
Total earning assets	(4,273)		6,665		2,392
Interest-bearing liabilities
Demand and NOW deposits	(942)		1,491		549
Savings deposits	(118)		(21)		(139)
Money market deposits	2,369		3,197		5,566
Certificates of deposits	(3,902)		(3,373)		(7,275)
Total deposits	(2,593)		1,294		(1,299)
Repurchase agreements	15		(26)		(11)
Total deposits and repurchase agreements	(2,578)		1,268		(1,310)
FHLB borrowings	(272)		(1,556)		(1,828)
Other long-term borrowings	(79)		9		(70)
Total interest-bearing liabilities	(2,929)		(279)		(3,208)
Net interest income	$	(1,344)	$	6,944	$	5,600
1 Includes loans held-for-investment, including nonaccrual loans, and loans held-for-sale.


	For the six months ended June 30,
	2025 Versus 2024 Increase (Decrease) Due to:
(In thousands)	Rate		Volume		Total
Interest Earning Assets

Loans 1	$	(5,891)	$	5,236	$	(655)
Investment securities	73		(529)		(456)
Interest-bearing cash	(1,784)		5,694		3,910
Total earning assets	(7,602)		10,401		2,799
Interest-bearing liabilities
Demand and NOW deposits	(1,466)		2,853		1,387
Savings deposits	(238)		(57)		(295)
Money market deposits	3,764		5,062		8,826
Certificates of deposits	(6,943)		(6,270)		(13,213)
Total deposits	(4,883)		1,588		(3,295)
Repurchase agreements	34		(65)		(31)
Total deposits and repurchase agreements	(4,849)		1,523		(3,326)
FHLB borrowings	(533)		(2,501)		(3,034)
Other long-term borrowings	(129)		16		(113)
Total interest-bearing liabilities	(5,511)		(962)		(6,473)
Net interest income	$	(2,091)	$	11,363	$	9,272
1 Includes loans held-for-investment, including nonaccrual loans, and loans held-for-sale.

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 $4.5 million for the second quarter of 2025, compared to $1.2 million for the same period in 2024. The provision for credit losses for the second quarter of 2025 was primarily due to deterioration in a couple of C&I customer relationships and impacts from net portfolio downgrades, partially offset by impacts from net changes in loan portfolio balances.

We recorded a provision for credit losses of $8.3 million for the six months ended June 30, 2025, compared to $17.7 million for the same period in 2024. The provision for credit losses for the six months ended June 30, 2025 was primarily due to deterioration in a couple of C&I customer relationships and impacts from net portfolio downgrades, partially offset by impacts from net changes in loan portfolio balances.

Noninterest Income

The following table presents noninterest income:


	For the three months ended				For the six months ended
(In thousands)	June 30, 2025		June 30, 2024		June 30, 2025		June 30, 2024
Service charges on deposit accounts	$	2,016	$	2,372	$	4,043	$	4,716
Treasury management service fees	4,333		3,631		8,527		7,099
Credit and debit card fees	2,728		2,950		5,314		5,709
Trust and investment advisory fees	1,473		1,493		2,894		2,956
Income from mortgage banking services, net	13,274		11,043		22,329		20,545
Other	3,249		1,785		5,695		5,057
Total noninterest income	$	27,073	$	23,274	$	48,802	$	46,082

Three months ended June 30, 2025 and 2024

Our noninterest income increased $3.8 million to $27.1 million for the second quarter of 2025 from $23.3 million for the same period in 2024.

Service charges on deposit accounts includes overdraft and non-sufficient funds charges, and other service fees on deposit accounts. Service charges on deposit accounts decreased $0.4 million for the second quarter of 2025, compared to the same period in 2024, primarily due to a decrease 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 $0.7 million for the second quarter of 2025 compared to the same period in 2024, 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 decreased $0.2 million for the second quarter of 2025 compared to the same period in 2024, as card transaction volumes decreased 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 were largely unchanged for the second quarter of 2025 as compared to the same period in 2024.

The components of income from mortgage banking services were as follows:


	For the three months ended June 30,
(In thousands)	2025		2024
Net sale gains and fees from mortgage loan originations, including loans held-for-sale changes in fair value and hedging	$	6,601	$	5,265

Mortgage servicing income	4,640		4,155
Net MSR capitalization and changes in fair value, net of derivative activity	2,033		1,623


Income from mortgage banking services, net	$	13,274	$	11,043

For the second quarter of 2025, income from mortgage banking services increased $2.2 million, compared to the same period in 2024. Total loan originations for sale were $380.6 million for the second quarter of 2025, an increase of $83.1 million from $297.5 million for the same period in 2024. The increase in loan originations sold, partially offset by slightly lower 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 $0.5 million to $4.6 million for the second quarter of 2025, from $4.2 million for the same period in 2024. Net MSR capitalization and changes in fair value, net of derivative activity, increased $0.4 million in the second quarter of 2025, compared to the same period in 2024. The increase in revenue related to our MSRs was due to higher net MSR capitalization and a slight increase in the fair value of our MSRs, net of hedging.

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 June 30, 2025.


(In thousands)	10%		20%
Discount rate	$	(4,009)	$	(7,005)
Total prepayment speeds	(3,679)		(6,343)
Cost of servicing each loan	(1,738)		(2,608)

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 $1.5 million for the second quarter of 2025 compared to the same period in 2024, primarily due to an increase in the fair value of investments related to our deferred compensation plan.

Six months ended June 30, 2025 and 2024

Our noninterest income increased $2.7 million to $48.8 million for the six months ended June 30, 2025 from $46.1 million for the same period in 2024.

Service charges on deposit accounts decreased $0.7 million for the six months ended June 30, 2025, compared to the same period in 2024, primarily due to a decrease in non-sufficient funds and overdraft fees.

Credit and debit card fees decreased $0.4 million for the six months ended June 30, 2025 compared to the same period in 2024, as card transaction volumes decreased slightly.

Trust and investment advisory fees were largely unchanged for the six months ended June 30, 2025 as compared to the same period in 2024.

The components of income from mortgage banking services were as follows:


	For the six months ended June 30,
(In thousands)		2025		2024
Net sale gains and fees from mortgage loan originations, including loans held-for-sale changes in fair value and hedging		$	11,164	$	10,236

Mortgage servicing income		9,145		8,259
Net MSR capitalization and changes in fair value, net of derivative activity		2,020		2,050


Income from mortgage banking services, net		$	22,329	$	20,545

For the six months ended June 30, 2025, income from mortgage banking services increased $1.8 million, compared to the same period in 2024. Total loan originations for sale were $631.6 million for the six months ended June 30, 2025, an increase of $139.2 million from $492.4 million for the same period in 2024. The increase in loan originations sold, partially offset by slightly lower 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 $0.9 million to $9.1 million for the six months ended June 30, 2025, from $8.3 million for the same period in 2024. Net MSR capitalization and changes in fair value, net of derivative activity was largely unchanged for the six months ended June 30, 2025, compared to the same period in 2024 as an increase in capitalized servicing value was offset by an increase in MSR amortization.

Other noninterest income increased $0.6 million for the six months ended June 30, 2025 compared to the same period in 2024, primarily due to an increase in interest rate swap and loan syndication revenue partially offset by a decrease in income from BOLI.

Noninterest Expense

The following table presents noninterest expense:


	For the three months ended June 30,				For the six months ended June 30,
(In thousands)	2025		2024		2025		2024
Salary and employee benefits	$	43,921	$	39,828	$	83,482	$	77,181
Occupancy and equipment	9,541		8,701		19,077		17,296
Amortization of intangible assets	578		652		1,206		1,467
Terminated merger-related expenses	—		1,046		—		3,535
Other	14,070		13,648		27,067		26,224
Total noninterest expenses	$	68,110	$	63,875	$	130,832	$	125,703

Three months ended June 30, 2025 and 2024

Our noninterest expenses increased $4.2 million to $68.1 million for the second quarter of 2025, from $63.9 million for the same period in 2024.

Salary and employee benefits increased $4.1 million to $43.9 million for the second quarter of 2025, from $39.8 million for the same period in 2024, primarily due to higher levels of variable compensation associated with an increase in residential mortgage loan originations and an increase in the fair value of investments related to our deferred compensation plan.

Occupancy and equipment increased $0.8 million to $9.5 million for the second quarter of 2025, from $8.7 million for the same period in 2024, primarily due to higher software subscriptions and license fees.

Other noninterest expense increased $0.4 million to $14.1 million for the second quarter of 2025, from $13.6 million for the same period in 2024, primarily due to higher legal and professional fees.

Six months ended June 30, 2025 and 2024

Our noninterest expenses increased $5.1 million to $130.8 million for the six months ended June 30, 2025, from $125.7 million for the same period in 2024.

Salary and employee benefits increased $6.3 million to $83.5 million for the six months ended June 30, 2025, from $77.2 million for the same period in 2024, primarily due to increased headcount, including the hiring of C&I bankers in Southern California and higher variable compensation due to an increase in mortgage loan originations.

Occupancy and equipment increased $1.8 million to $19.1 million for the six months ended June 30, 2025, from $17.3 million for the same period in 2024, primarily due to higher software subscriptions and license fees.

Other noninterest expense increased $0.8 million to $27.1 million for the six months ended June 30, 2025, from $26.2 million for the same period in 2024, primarily due to higher data processing expenses.

Income Taxes

Three months ended June 30, 2025 and 2024

We recorded income tax expense for the second quarter of 2025 of $6.6 million, compared to income tax expense of $6.5 million for the same period in 2024. The increase in income tax expense was due to an increase in income during the second quarter of 2025, compared to the same period in 2024. Our effective tax rate was 20.0% for the second quarter of 2025, compared to 21.0% for the same period in 2024.

Six months ended June 30, 2025 and 2024

We recorded income tax expense for the six months ended June 30, 2025 of $12.7 million, compared to $9.5 million for the same period in 2024. The increase in income tax expense was primarily due to our increased income during the six months ended June 30, 2025. Our effective tax rate was 20.3% for the six months ended June 30, 2025, compared to 20.5% for the same period in 2024.

Financial Condition

Balance Sheet

Our total assets were $8.4 billion and $8.1 billion, total liabilities were $7.3 billion and $7.1 billion, and total stockholders’ equity was $1.1 billion and $1.0 billion at June 30, 2025 and December 31, 2024, 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. There were no trading securities in our investment portfolio as of June 30, 2025 and December 31, 2024. 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 $4.4 million to $473.5 million at June 30, 2025, compared to December 31, 2024. During the period ended June 30, 2025, the securities held-to-maturity decreased $0.7 million to $34.6 million.

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


	June 30, 2025				December 31, 2024
(In thousands)	Carrying Amount		% of Portfolio		Carrying Amount		% of Portfolio
Available-for-sale:
U.S. treasury	$	32,605	6.9	%	$	31,730	6.8	%
U.S. agency	549		0.1	%	656		0.2	%
Obligations of states and political subdivisions	27,079		5.7	%	25,699		5.5	%
Mortgage backed - residential	98,767		20.8	%	96,279		20.5	%
Collateralized mortgage obligations	156,292		33.0	%	164,347		35.0	%
Mortgage backed - commercial	142,309		30.1	%	134,827		28.7	%
Other debt	15,867		3.4	%	15,538		3.3	%
Total available-for-sale	$	473,468	100.0	%	$	469,076	100.0	%
Held-to-maturity:


Obligations of states and political subdivisions	$	25,801	74.6	%	$	25,713	73.0	%
Mortgage backed - residential	5,951		17.2	%	6,373		18.0	%
Collateralized mortgage obligations	2,829		8.2	%	3,156		9.0	%


Total held-to-maturity	$	34,581	100.0	%	$	35,242	100.0	%

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, 2025:


(In thousands)	One year or less				One to five years				Five to ten years				After ten years
	Carrying Amount		Average Yield		Carrying Amount		Average Yield		Carrying Amount		Average Yield		Carrying Amount		Average Yield
Available-for-sale:
U.S. treasury	$	—	—	%	$	32,605	1.28	%	$	—	—	%	$	—	—	%
U.S. agency	47		5.25	%	—		—	%	502		5.59	%	—		—	%
Obligations of states and political subdivisions	—		—	%	—		—	%	23,115		3.23	%	3,964		2.39	%
Mortgage backed - residential	1,373		2.19	%	24,108		3.33	%	33,530		2.04	%	39,756		3.05	%
Collateralized mortgage obligations	147		3.07	%	36,805		3.60	%	104,285		3.22	%	15,055		2.31	%
Mortgage backed - commercial	1,070		2.83	%	74,816		3.55	%	66,423		2.81	%	—		—	%
Other debt	—		—	%	7,846		3.84	%	6,199		1.86	%	1,822		3.75	%
Total available-for-sale	$	2,637	2.55	%	$	176,180	3.12	%	$	234,054	2.91	%	$	60,597	2.85	%
Held-to-maturity:


Obligations of states and political subdivisions	$	—	—	%	$	992	2.06	%	$	—	—	%	$	24,809	3.52	%
Mortgage backed - residential	100		3.22	%	3,354		2.52	%	19		5.73	%	2,478		3.24	%
Collateralized mortgage obligations	120		2.79	%	1,654		2.77	%	1,055		3.05	%	—		—	%


Total held-to-maturity	$	220	2.98	%	$	6,000	2.51	%	$	1,074	3.10	%	$	27,287	3.50	%

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 $6.5 billion at June 30, 2025 and $6.4 billion at December 31, 2024.

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


	June 30, 2025				December 31, 2024
(In thousands)	Amount		% of total loans		Amount		% of total loans
Commercial and industrial	$	2,651,646	40.8	%	$	2,497,772	39.2	%
Commercial real estate:
Non-owner occupied	705,749		10.8	%	752,861		11.8	%
Owner occupied	662,120		10.2	%	702,773		11.0	%
Construction and land	383,969		5.9	%	362,677		5.7	%
Multifamily	134,520		2.1	%	94,355		1.5	%
Total commercial real estate	1,886,358		29.0	%	1,912,666		30.0	%
Residential real estate	1,226,760		18.9	%	1,180,610		18.5	%
Public finance	524,441		8.1	%	554,784		8.7	%
Consumer	43,080		0.6	%	41,345		0.6	%
Other	174,781		2.6	%	189,180		3.0	%
Total loans	$	6,507,066	100.0	%	$	6,376,357	100.0	%

Commercial and industrial loans include loans to commercial customers for use in normal business operations to finance working capital needs, equipment and inventory purchases, and other expansion projects. 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 60.1% of the Company’s risk-based capital, or 10.8% of total loans as of June 30, 2025. Non-owner occupied CRE loans associated with office space were $169.0 million, or 2.6% of total loans as of June 30, 2025. Owner occupied CRE loans associated with office space were $61.6 million, or 0.9% of total loans as of June 30, 2025.

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 loans to nondepository financial institutions, 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, 2025:


(In thousands)	One year or less		After one through five years		After five through 15 years		After 15 years		Total
Commercial and industrial	$	491,251	$	1,876,212	$	262,098	$	22,085	$	2,651,646
Commercial real estate	367,030		1,148,185		319,091		52,052		1,886,358
Residential real estate	114,257		38,092		53,488		1,020,923		1,226,760
Public finance	11,390		196,579		241,719		74,753		524,441
Consumer	17,363		12,168		13,305		244		43,080
Other	32,874		122,273		15,348		4,286		174,781
Total loans	$	1,034,165	$	3,393,509	$	905,049	$	1,174,343	$	6,507,066


(In thousands)	One year or less		After one through five years		After five through 15 years		After 15 years		Total		Total Loans Maturing After 1 Year
Loans maturing with:
Fixed interest rates
Commercial and industrial	$	105,629	$	199,054	$	156,246	$	519	$	461,448	$	355,819
Commercial real estate	172,069		536,468		51,983		4,560		765,080		593,011
Residential real estate	83,577		24,249		37,456		300,526		445,808		362,231
Public finance	7,857		196,579		238,714		74,753		517,903		510,046
Consumer	6,446		11,440		12,932		—		30,818		24,372
Other	2,197		30,227		14,564		4,286		51,274		49,077
Total fixed interest rate loans	$	377,775	$	998,017	$	511,895	$	384,644	$	2,272,331	$	1,894,556
Floating or adjustable interest rates
Commercial and industrial	$	385,622	$	1,677,158	$	105,852	$	21,566	$	2,190,198	$	1,804,576
Commercial real estate	194,961		611,717		267,108		47,492		1,121,278		926,317
Residential real estate	30,680		13,843		16,032		720,397		780,952		750,272
Public finance	3,533		—		3,005		—		6,538		3,005
Consumer	10,917		728		373		244		12,262		1,345
Other	30,677		92,046		784		—		123,507		92,830
Total floating or adjustable interest rate loans	$	656,390	$	2,395,492	$	393,154	$	789,699	$	4,234,735	$	3,578,345
Total loans	$	1,034,165	$	3,393,509	$	905,049	$	1,174,343	$	6,507,066	$	5,472,901

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:


	For the three months ended June 30,						For the six months ended June 30,
(In thousands)	2025			2024			2025			2024
Balance, beginning of period	$	91,790		$	79,829		$	88,221		$	80,398


Loan charge-offs:
Commercial and industrial	(11,089)			(2,261)			(11,732)			(19,627)
Commercial real estate	—			—			—			—
Residential real estate	—			(38)			—			(38)
Public finance	(1,680)			—			(1,680)			—
Consumer	(85)			(161)			(254)			(301)
Other	(743)			—			(743)			—
Total loan charge-offs	(13,597)			(2,460)			(14,409)			(19,966)
Recoveries of loans previously charged-off:
Commercial and industrial	2			414			121			461
Commercial real estate	—			5			—			5
Residential real estate	—			—			23			8
Public finance	—			—			—			—
Consumer	48			32			87			54
Other	—			—			—			—
Total loan recoveries	50			451			231			528
Net (charge-offs) recoveries	(13,547)			(2,009)			(14,178)			(19,438)
Provision for credit losses 1	4,750			1,140			8,950			18,000
Balance, end of period	$	82,993		$	78,960		$	82,993		$	78,960
Allowance for credit losses to total loans	1.28		%	1.25		%	1.28		%	1.25		%
Ratio of net charge-offs to average loans outstanding	0.83		%	0.13		%	0.44		%	0.62		%
1 For the three months ended June 30, 2025 and 2024 we recorded a (benefit) provision for credit losses on unfunded commitments of $(250) and $60, respectively. For the six months ended June 30, 2025 and 2024 we recorded a benefit for credit losses on unfunded commitments of $650 and $300, respectively. For further information, see Note 3 - Loans .

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


	For the three months ended June 30,				For the six months ended June 30,
(In thousands)	2025		2024		2025		2024
Commercial and industrial	1.45	%	1.27	%	0.79	%	1.39	%
Commercial real estate	—	%	—	%	—	%	—	%
Residential real estate	—	%	0.02	%	—	%	0.01	%
Public finance	1.25	%	—	%	0.63	%	—	%
Consumer	0.39	%	1.26	%	0.87	%	1.24	%
Other	2.14	%	—	%	0.85	%	—	%

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:


	June 30, 2025				December 31, 2024
(In thousands)	Allowance Amount		% of loans in each category to total loans		Allowance Amount		% of loans in each category to total loans
Commercial and industrial	$	36,680	40.7	%	$	37,912	39.2	%
Commercial real estate	25,481		29.0	%	28,323		30.0	%
Residential real estate	15,249		18.8	%	15,450		18.5	%
Public finance	3,203		8.1	%	4,750		8.7	%
Consumer	804		0.7	%	750		0.6	%
Other	1,576		2.7	%	1,036		3.0	%
Total	$	82,993	100.0	%	$	88,221	100.0	%

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:


(In thousands)	June 30, 2025			December 31, 2024
Nonaccrual loans:
Commercial and industrial	$	27,911		$	28,314
Commercial real estate	8,423			9,302
Residential real estate	18,273			20,220
Public finance	—			7,226
Consumer	40			64
Other	—			2,391
Total nonaccrual loans	54,647			67,517

Accrual loans greater than 90 days past due	194			1,533
Total nonperforming loans	54,841			69,050
Other real estate owned and foreclosed assets, net	13,052			5,138
Total nonperforming assets	$	67,893		$	74,188
Nonaccrual loans to total loans	0.84		%	1.06		%
Nonperforming loans to total loans	0.84		%	1.08		%
Nonperforming assets to total assets	0.80		%	0.92		%
Allowance for credit losses to nonaccrual loans	151.87		%	130.66		%

Deposits

Deposits represent our primary source of funds. Total deposits increased by $0.4 billion to $7.1 billion at June 30, 2025, compared to December 31, 2024.

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:


($ in thousands)	June 30, 2025		December 31, 2024
Consumer
Noninterest bearing deposit accounts	$	426,909	$	410,303
Interest-bearing deposit accounts:
Demand and NOW deposits	113,415		61,987
Savings deposits	322,672		326,916
Money market deposits	1,803,348		1,516,577
Certificates of deposits	937,439		1,069,704
Total interest-bearing deposit accounts	3,176,874		2,975,184
Total consumer deposits	$	3,603,783	$	3,385,487
Business
Noninterest bearing deposit accounts	$	1,279,769	$	1,130,855
Interest-bearing deposit accounts:
Demand and NOW deposits	684,340		669,417
Savings deposits	74,448		75,422
Money market deposits	965,998		915,208
Certificates of deposits	56,930		51,131
Total interest-bearing deposit accounts	1,781,716		1,711,178
Total business deposits	$	3,061,485	$	2,842,033
Wholesale deposits 1	$	434,896	$	444,740
Total deposits	$	7,100,164	$	6,672,260
1 Wholesale deposits primarily consist of brokered deposits included in our consolidated balance sheets within certificate of deposits.

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


	For the three months ended June 30,								For the six months ended June 30,
	2025				2024				2025				2024
(Dollars in thousands)	Average Balance		Average Rate Paid		Average Balance		Average Rate Paid		Average Balance		Average Rate Paid		Average Balance		Average Rate Paid
Noninterest-bearing demand deposit accounts	$	1,587,302	—	%	$	1,517,560	—	%	$	1,559,878	—	%	$	1,510,134	—	%
Interest-bearing deposit accounts:
Interest-bearing demand accounts	751,033		3.38	%	580,886		3.99	%	712,154		3.37	%	543,948		3.88	%
Savings accounts and money market accounts	3,060,435		2.18	%	2,506,148		1.80	%	2,952,089		2.08	%	2,495,676		1.76	%
NOW accounts	42,428		1.21	%	40,457		1.35	%	45,128		1.03	%	41,469		1.35	%
Certificate of deposit accounts	1,504,235		3.76	%	1,823,522		4.71	%	1,525,814		3.84	%	1,819,075		4.67	%
Total interest-bearing deposit accounts	5,358,131		2.78	%	4,951,013		3.13	%	5,235,185		2.76	%	4,900,168		3.07	%
Total deposits	$	6,945,433	2.15	%	$	6,468,573	2.39	%	$	6,795,063	2.12	%	$	6,410,302	2.35	%

As of June 30, 2025 and December 31, 2024, approximately $2.6 billion or 37.0% and $2.3 billion or 34.8%, respectively, of our deposit portfolio was uninsured. As of June 30, 2025 and December 31, 2024, approximately $2.0 billion or 28.3% and $1.7 billion or 25.2%, 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 $0.8 billion, or 11.3% of all deposits as of June 30, 2025, and $0.7 billion, or 11.1% of all deposits as of December 31, 2024.

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,:


(In thousands)	2025
Three months or less	$	65,369
Over three months through six months	106,277
Over six through twelve months	37,926
Over twelve months through three years	2,846
Over three years	518
Total	$	212,936

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 June 30, 2025, FirstSun had available cash and cash equivalents of $104.4 million and debt outstanding of $78.9 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 2024 and is not currently required. At June 30, 2025, the Bank could pay dividends to FirstSun of approximately $222.3 million without prior regulatory approval. During the three and six months ended June 30, 2025, the Bank did not pay dividends to FirstSun.

Bank

As more fully discussed in our 2024 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, 2025, our liquid assets, which consist of cash and amounts due from banks and interest-bearing deposits in other financial institutions, amounted to $776.5 million, or 9.2% of total assets, compared to $607.6 million, or 7.5% of total assets, at December 31, 2024. The increase in our liquid assets was primarily due to an increase in cash held at the Federal Reserve. At June 30, 2025, approximately 84% of the investment securities portfolio was pledged as collateral to secure public deposits and repurchase agreements. Our unencumbered available-for-sale securities at June 30, 2025 were $73.0 million, or 0.9% of total assets, compared to $34.5 million, or 0.4% of total assets, at December 31, 2024.

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 sizeable source of relatively stable and low-cost funds. At June 30, 2025, loans as a percentage of customer deposits were 91.6%, compared with 95.6% at December 31, 2024. 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 requires that securities and qualifying loans be pledged to secure any advances. Liquidity sources available to us for immediate funding at June 30, 2025, are as follows:


FHLB borrowings available	$	1,333,895
Fed Funds lines	2,120,854

Unused lines with other financial institutions	160,000
Immediate funding availability	$	3,614,749

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 at June 30, 2025 was $1.1 billion, compared to $1.0 billion at December 31, 2024, an increase of $54.0 million, or 5.2%.

We did not pay a dividend to our common shareholders for the three and six months ended June 30, 2025 and 2024.

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 11 - 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, 2025. Further discussion of each obligation or commitment is included in the referenced note to the consolidated financial statements.


(In thousands)	Note Reference	Total		Less than 1 Year		1 - 3 Years		3 - 5 Years		More than 5 Years
Deposits:
Deposits without a stated maturity	6	$	5,670,899	$	5,670,899	$	—	$	—	$	—
Certificates of deposit	6	1,429,265		1,371,430		49,379		6,573		1,883
Securities sold under agreements to repurchase		11,173		11,173		—		—		—
Short-term debt:

FHLB term advances	7	—		—		—		—		—
Long-term debt:


Subordinated debt	7	78,919		—		—		—		78,919
Operating leases	15	27,882		7,289		10,138		7,155		3,300

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 5 - 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 14 - 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 14 - Commitments and Contingencies to the consolidated financial statements.

Item 3. Quantitative and Qualitative Disclosures About Market Risk

Market risk is the risk of reduced earnings and/or declines in the net market value of the balance sheet due to changes in market rates. Our primary market risk is interest rate risk which impacts our net interest income, fee income related to interest sensitive activities such as mortgage origination and servicing income and loan and deposit demand.

We are subject to interest rate risk due to:

• the maturity or repricing of assets and liabilities at different times or for different amounts;

• differences in short-term and long-term market interest rate changes; and

• the remaining maturity of various assets or liabilities may shorten or lengthen as interest rates change.

Our Asset Liability Committee, or ALCO, which is composed of our executive officers and certain other members of management, monitors interest rate risk on an ongoing basis in accordance with policies approved by our board of directors. The ALCO reviews interest rate positions and considers the impact projected interest rate scenarios have on earnings, liquidity, business strategies and other factors. However, management has the latitude to change interest rate positions within certain limits if, in management’s judgment, the change will enhance profitability or minimize risk.

To assess and manage interest rate risk, sensitivity analysis is used to determine the impact on earnings and the net market value of the balance sheet across various interest rate scenarios, balance sheet trends, and strategies.

Management uses a simulation model to analyze the sensitivity of net interest income to changes in interest rates across various interest rate scenarios, which seeks to demonstrate the level of interest rate risk inherent in the existing balance sheet. The analysis holds the current balance sheet values constant and does not take into account management intervention.

Additionally our simulation model incorporates various key assumptions, which we believe are reasonable, but may have an impact on the results such as: (1) we assume certain correlation rates, often referred to as “deposit beta,” for interest-bearing deposits, wherein the rates paid to customers change relative to changes in benchmark interest rates, (2) cash flows and maturities of interest sensitive assets and liabilities, (3) re-pricing characteristics for market rate sensitive instruments, (4) prepayment rates and product mix of assets and liabilities, and (5) simulations do not contemplate any actions management may undertake in response to changes in interest rates. Because of limitations in any approach used to measure interest rate risk, simulation results are not intended to forecast actual results driven by the effect of a change in market rates but to better plan and execute appropriate asset-liability management strategies and manage our interest rate risk.

The primary impact of inflation on operations is reflected in increasing operating costs and non-interest expense. Our interest-bearing assets and liabilities are monetary in nature and changes in interest rates will impact our performance on net interest margin more than changes in the general rate of inflation.

The effect on net interest income over a 12-month time horizon due to hypothetical changes in market interest rates is presented in the table below. In this interest rate shock simulation, as of the periods presented, interest rates have been adjusted by instantaneous parallel changes rather than in a ramp simulation, which applies interest rate changes over time. All rates, short-term and long-term, are changed by the same amount (e.g., plus or minus 100 basis points) resulting in the shape of the yield curve remaining unchanged.


	% Change in Net Interest Income As of June 30,				% Change in Economic Value of Equity As of June 30,
Changes in Interest Rate (Basis Points)	2025		2024		2025		2024

+300	8.0	%	2.7	%	(6.0)	%	(9.5)	%
+200	5.5	%	1.9	%	(3.5)	%	(6.2)	%
+100	2.8	%	1.2	%	(1.3)	%	(2.7)	%
Base	—	%	—	%	—	%	—	%
-100	1.5	%	1.7	%	1.5	%	2.9	%
-200	1.9	%	2.5	%	1.1	%	4.0	%
-300	0.8	%	2.1	%	(1.1)	%	2.7	%

Item 4. Controls and Procedures

a. Evaluation of Disclosure Controls and Procedures

Under the supervision and with the participation of our management, including our principal executive officer and principal financial officer, we conducted an evaluation of our disclosure controls and procedures (as such term is defined in Rule 13a-15(e) promulgated under the Securities and Exchange Act of 1934 (the “Exchange Act”)) as of June 30, 2025. Based on that evaluation, our principal executive officer and chief financial officer concluded that our disclosure controls and procedures were effective as of the end of the period covered by this report.

b. Changes in Internal Control over Financial Reporting

No change in our internal control over financial reporting (as such term is defined in Exchange Act Rule 13a-15(f)) occurred during the fiscal quarter ended June 30, 2025, that materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.

Part II - Other Information

Item 1. Legal Proceedings

FirstSun and its subsidiaries are from time to time subject to claims and litigation arising in the ordinary course of business. For further information regarding legal proceedings, see Note 14 - Commitments and Contingencies under the subheading “Litigation” in our unaudited consolidated financial statements contained in this report.

Item 6. Exhibits


Exhibit No.						Description

3.1						Amended and Restated Certificate of Incorporation of FirstSun Capital Bancorp (incorporated by reference to Exhibit 3.1 of the Company's Form 10-Q for the quarter ended March 31, 2025).

3.2						Bylaws of FirstSun Capital Bancorp as amended and restated through May 7, 2025 (incorporated by reference to Exhibit 3.2 of the Company's Form 10-Q for the quarter ended March 31, 2025).

31.1						Certification of Chief Executive Officer Pursuant to Rule 13a-14(a)/15d-14(a).

31.2						Certification of Chief Financial Officer Pursuant to Rule 13a-14(a)/15d-14(a).

32.1						Certification of Chief Executive Officer and Chief Financial Officer Pursuant to 18 U.S.C. Section 1350, as adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.

101						The following financial statements from the Company’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2025, were formatted in Inline XBRL: (i) Consolidated Balance Sheets, (ii) Consolidated Statements of Income and Comprehensive Income, (iii) Consolidated Statements of Stockholders’ Equity, (iv) Consolidated Statements of Cash Flows, (v) Notes to Consolidated Financial Statements.

104						Cover Page Interactive Data File (formatted in Inline XBRL and contained in Exhibit 101).

Signatures

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.


		FIRSTSUN CAPITAL BANCORP
		(Registrant)
		/s/ Neal E. Arnold


Date:	August 8, 2025
		Neal E. Arnold
		President and Chief Executive Officer
		(Principal Executive Officer)
		/s/ Robert A. Cafera, Jr.


Date:	August 8, 2025
		Robert A. Cafera, Jr.
		Senior Executive Vice President and Chief Financial Officer
		(Principal Financial Officer and Principal Accounting Officer)

TABLE OF CONTENTS

Part I - Financial Information Item 1. Financial Statements (unaudited)Note 1 - Organization and Basis Of Presentation Note 2 - Securities Note 3 - Loans Note 4 - Mortgage Servicing Rights Note 5 - Derivative Financial Instruments Note 6 - Deposits Note 7 - Debt Note 8 - Earnings Per Share Note 9 - Stockholders Equity Note 10 - Income Taxes Note 11 - Regulatory Capital Matters Note 12 - Fair Value Measurements Note 13 - Segment Information Note 14 - Commitments and Contingencies Note 15 - Lease Commitments Item 2. Management's Discussion and Analysis Of Financial Condition and Results Of Operations Of Firstsun Item 3. Quantitative and Qualitative Disclosures About Market Risk Item 4. Controls and Procedures Part II - Other Information Item 1. Legal Proceedings Item 6. Exhibits

Exhibits

3.1 Amended and Restated Certificate of Incorporation of FirstSun Capital Bancorp (incorporated by reference to Exhibit 3.1 of the Company's Form 10-Q for the quarter ended March 31, 2025). 3.2 Bylaws of FirstSun Capital Bancorp as amended and restated through May 7, 2025 (incorporated by reference to Exhibit 3.2 of the Company's Form 10-Q for the quarter ended March 31, 2025). 31.1 Certification of Chief Executive Officer Pursuant to Rule 13a-14(a)/15d-14(a). 31.2 Certification of Chief Financial Officer Pursuant to Rule 13a-14(a)/15d-14(a). 32.1 Certification of Chief Executive Officer and Chief Financial Officer Pursuant to 18 U.S.C. Section 1350, as adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.

FSUN 10-Q Quarter ended June 30, 2025

Exhibits