Firstsun Capital Bancorp · NASDAQ:FSUN
Firstsun Capital Bancorp — Investor Presentation (September 2023)
25 slides from Firstsun Capital Bancorp's investor presentation, Sep 1, 2023
Slide 1: FSUN Investor Relations Materials
FSUN Investor Relations Materials
Slide 2: Cautionary Statement Regarding Forward-Looking Statements
Page 2 Cautionary Statement Regarding Forward-Looking Statements This presentation contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Examples of forward-looking statements include, but are not limited to, statements regarding our outlook,
Slide 3: Unique High Growth Franchise
Page 3 Unique High Growth Franchise Source: S&P Global Market Intelligence; Financial data as of most recent quarter available (1) Loan Growth represents CAGR calculated from 12/31/2017 (2) MSA’s ranked by population size within the Midwest and Southwest regions as defined by S&P Global Market Intel
Slide 4: Balance Between Organic Growth and Strategic M&A
Page 4 $7.8 $1.7 $1.9 $3.7 $3.9 $4.2 $5.0 $5.7 $7.4 2015 2016 2017 2018 2019 2020 2021 2022 2023Q2 Balance Between Organic Growth and Strategic M&A Asset Growth Over Time ($bn) Total Asset CAGR: 22.7% Source: S&P Global Market Intelligence; Data as of 6/30/2023 Note: CAGR calculated over 7.5 year pe
Slide 5: Financial summary
Page 5 For the Qtr For the Year Ended '19 - '22 Ended FY 2019A FY 2020A FY 2021A FY 2022A CAGR Q2 2023A Balance Sheet ($mm) Total Assets $4,185 $4,995 $5,667 $7,430 21.1% $7,797 Total Net Loans 3,060 3,799 3,990 5,846 24.1% 6,078 Deposits 3,490 4,154 4,855 5,765 18.2% 6,150 Tang. Common Equity 387 4
Slide 6: Key Themes
Page 6 Key Themes St ra te g y O p e ra tin g Solid core earnings progression & growth momentum, have moved from heavy investment phase to realization phase ‒ Past 5 years of repositioning to C&I and reduction in CRE exposure delivering NIM expansion & fee income ‒ Retooled infrastructure has create
Slide 7: History of Sunflower Bank
Page 7 0.00% 2.00% 4.00% 6.00% 8.00% 10.00% 1990 2000 2010 2023 Q2 Leverage Ratio NPAs / Loans + OREO NIM 0% 5% 10% 15% 20% 25% 30% 35% 40% 1990 2000 2010 2023 Q2 C&I Loans / Loans CRE Loans / Loans 0 1,000 2,000 3,000 4,000 5,000 6,000 7,000 8,000 1990 2000 2010 2023 Q2 Total Assets ($mm) Total Dep
Slide 8: Long-Term Credit Performance and Low-Cost Core Deposits
Page 8 0.13% 0.11% 0.09% (0.01%) 0.03% 2019 2020 2021 2022 2023 YTD Ann. 0.22% 0.21% 0.65% 1.94% 0.26% 0.29% 1.05% 2.23% 2021Q4 2022Q2 2022Q4 2023Q2 FSUN Peer Median 36% 41% FSUN Deposit Beta Peer Deposit Beta 204% 133% 167% 227% 114% 2019 2020 2021 2022 2023 Q2 Long-Term Credit Performance Low-Cost
Slide 9: Strong Organic Growth Underpinning Recent Operating Trends
Page 9 $170 $232 2019 2023Q2 Annualized $198 $393 2019 2023Q2 Annualized $127 $136 $155 $242 $295 2019 2020 2021 2022 2023Q2 Annualized $3,490 $4,154 $4,855 $5,765 $6,150 2019 2020 2021 2022 2023Q2 ’19 – ’23Q2 CAGR: 18% Strong Organic Growth Underpinning Recent Operating Trends Total Loans excl. PPP
Slide 10: Strategic Focus
Page 10 Strategic Focus St ra te g y GEOGRAPHIC CONNECTIVITY: Focus in key Southwest region growth markets ‒ Dallas, Phoenix-Scottsdale, Houston, Kansas City, San Antonio, Austin and Denver ‒ Pioneer Bank acquisition added scale in Austin and Houston markets ‒ Scarcity created across 5 states and al
Slide 11: Situated in Top-Tier Growth Markets
Page 11 $97.0 $90.9 $74.3 $78.2 $81.6 $69.1 $73.5 Denver, CO Austin, TX Houston, TX Phoenix, AZ Dallas, TX San Antonio, TX U.S.National Average 19.0% 41.8% 24.5% 20.1% 24.6% 24.1% 8.3% Denver, CO Austin, TX Houston, TX Phoenix, AZ Dallas, TX San Antonio, TX U.S.National Average Source: S&P Global Ma
Slide 12: Regional Operations & Scale
Page 12 Regional Operations & Scale Source: Company documents; Financial data as of June 30, 2023 Eastern KS Loans: $705 Deposits: $246 Branches: 3 FTE: 36 Metro TX Loans: $2,324 Deposits: $1,303 Branches: 19 FTE: 148 El Paso Loans: $210 Deposits: $548 Branches: 5 FTE: 35 New Mexico Loans: $140 Depo
Slide 13: C&I Relationship Banking: Vertical Focus in Growing Markets
Page 13 C&I Relationship Banking: Vertical Focus in Growing Markets C&I relationships come with higher margins, fees and deposits Diversified verticals in specialized markets, competing w/ bigger competitors Robust client relationships – proven track record of beating bigger competitors due to
Slide 14: Loan Composition: Strong C&I Growth while Lowering CRE
Page 14 40.2% 28.3% FirstSun Peer Median Construction 4% Residential R.E. 21% Multifamily 1% Owner Occupied C.R.E 12% Non-Owner Occupied C.R.E. 26% Commercial & Industrial 22% Consumer & Other 4% Oblig. of St & Poli. Subdivisions 10% Construction 5% Residential R.E. 18% Multifamily 2% Owner Occupied
Slide 15: Operating Focus
Page 15 Operating Focus O p e ra tin g SOLID CORE EARNINGS PROGRESSION & GROWTH, HAVE MOVED FROM INVESTMENT PHASE TO REALIZATION PHASE ‒ Past 5 years of repositioning to C&I and reduction in CRE exposure delivering NIM expansion & fee income ‒ Retooled infrastructure has created tremendous operating
Slide 16: Funding Composition: Low-Cost, Low Beta Deposits
Page 16 Loans / Cash + Securities / On-Hand Reliance on One Year GAP / AOCI & HTM Sec. FMV / Deposits Deposits Liquidity Ratio Wholesale Funding Assets Total Equity FirstSun 100.1% 17.0% 9.6% 16.5% 18.1% (6.1%) Peer Median 91.5% 25.2% 12.8% 13.9% 17.9% (14.0%) Demand Deposits 22%NOW & Other Trans. A
Slide 17: Investments Made into the Franchise Post-2019
Page 17 979 1,121 2019Q4 2023Q2 $76 $525 $0 $200 $400 $600 Dec 2019 Jun 2023 $517 $705 $0 $300 $600 $900 Dec 2019 Jun 2023 $92 $1,868 $0 $500 $1,000 $1,500 $2,000 Dec 2019 Jun 2023 178.5% 146.0% 136.4% 170.6% 152.3% $0.8 $1.3 $1.7 $2.3 $2.5 Organic Growth Strategy in New Markets $113.8 $136.2 2019Q4
Slide 18: Revenue Mix
Page 18 75% 2% 3% 3% 3% 12% 3% Net Interest Income Wealth Management Service Fees Treasury Management Service Fees Deposit Service Fees Interchange Service Fees Mortgage Service Fee Income Other Service Fee Income Sources % of Revenue ($000) Balance Total Net Interest Income $295,340 75% Wealth Mana
Slide 19: Creating a High-Growth, High-Performing Franchise
Page 19 Creating a High-Growth, High-Performing Franchise Select High Performing Regional Peers(1) Broader Midwest & Southwest Median(2) Outpacing peers If We Deliver on Focused Strategies and Keep to Our Operating Disciplines, then FirstSun can Outpace its Peers Size & Balance Sheet Composition Rev
Slide 20: Appendix
~~ Sunflower = Gar sk Bank tek OPI? APPENDIX
Slide 21: Introduction to FirstSun & Sunflower Management
Page 21 Introduction to FirstSun & Sunflower Management NEAL E. ARNOLD, CEO & President Neal E. Arnold serves as President and Chief Executive Officer of FirstSun since April 1, 2022 and for Sunflower since 2018. Mr. Arnold also serves as a board member for FirstSun and Sunflower Bank. He served as
Slide 22: Board of Directors (excluding management)
Page 22 Board of Directors (excluding management) CHRISTOPHER C. CASCIATO Christopher C. Casciato is a Managing Director of Lightyear Capital LLC, a position he has held since 2008. Before that, he spent over 20 years at Goldman, Sachs & Co., where he was elected partner in 2000. His career at Goldm
Slide 23: Asset Quality Summary
Page 23 Asset Quality Summary Source: S&P Global Market Intelligence; Financial data as of the most recent quarter available (1) Includes U.S. Banks headquartered in the Midwest and Southwest with total assets between $5 billion and $10 billion with C&I / Loans > 20% for the quarter ending June 30,
Slide 24: Tangible common equity reconciliation
Page 24 Tangible common equity: Total stockholders' equity (GAAP) 430$ 486$ 524$ 775$ 824$ Less: Goodwill and other intangible assets Goodwill (33) (33) (33) (93) (93) Other intangible assets (10) (10) (8) (16) (13) Tangible common equity (non-GAAP) 387$ 443$ 483$ 665$ 717$ Tangible assets: Total as
Slide 25: Core Net Income / Core Pre-Tax Pre-Provision Net Income
Page 25 Core Net Income / Core Pre-Tax Pre-Provision Net Income: Net income (GAAP) 20.5$ 47.6$ 43.2$ 59.2$ 28.0$ Add: Merger costs, net of income taxes Merger related expenses - - 3.1 18.8 - Income tax effect on merger related expenses - - (0.5) (4.1) - Prov ision for loan loss on Pioneer loans mark
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