Firstsun Capital Bancorp · NASDAQ:FSUN
Firstsun Capital Bancorp — Investor Presentation (August 2024)
27 slides from Firstsun Capital Bancorp's investor presentation, Aug 30, 2024
Slide 1: FirstSun Capital Bancorp Investor Relations Materials
FirstSun Capital Bancorp (NASDAQ: FSUN) Investor Relations Materials
Slide 2: Disclaimer & Forward Looking Statements
Page 2 2 DISCLAIMER & FORWARD LOOKING STATEMENTS CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS This presentation contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements reflect current views of FirstSun Capital
Slide 3: Agenda
Page 3 1 FirstSun Overview - High Growth Franchise - Strong Operating Performance - Key Themes: Focused Strategies 2 Merger Update - Integration Planning 3 Markets and Clients Served - Situated in Top-Tier Growth Markets - Operations and Scale 4 History of FirstSun - Credit and Deposits - Strong Org
Slide 4: Unique High Growth Franchise
Page 4 Unique High Growth Franchise Source: S&P Global Market Intelligence; Financial data as of most recent quarter available (1) Specialized C&I lending defined as C&I concentration of 30% or greater of total loan portfolio (2) Loan Growth represents CAGR calculated from 12/31/2018 (3) MSA’s ranke
Slide 5: Balance Between Organic Growth and Strategic M&A
Page 5 $9.3 $4.4 $3.6 $1.7 $1.9 $3.7 $3.9 $4.2 $5.0 $5.7 $7.4 $7.9 $17.3 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024Q2 Balance Between Organic Growth and Strategic M&A Asset Growth Over Time ($bn) Source: S&P Global Market Intelligence; Data as of 6/30/2024 Note: CAGR calculated over 8.5 year
Slide 6: Key Themes
Page 6 Key Themes S tr a te g y O p e ra ti n 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 crea
Slide 7: Financial Summary
Page 7 For the Qtr For the Year Ended '20 - '23 Ended FY 2020A FY 2021A FY 2022A FY 2023A CAGR Q2 2024A Balance Sheet ($mm) Total Assets $4,995 $5,667 $7,430 $7,880 16.4% $7,999 Total Net Loans 3,799 3,990 5,846 6,187 17.7% 6,258 Deposits 4,154 4,855 5,765 6,374 15.3% 6,620 Tang. Common Equity 443 4
Slide 8: FirstSun Stand Alone vs. Peers
Page 8 # of Branches 134 69 122 Total Assets ($B) $20.7 $8.0 $18.4 Tangible Common Equity / Tangible Assets(3) 7.59% 11.32% 8.91% Loans / Deposits 91.0% 95.7% 86.6% Most Recent Quarter Cost of Deposits 2.31% 2.38% 2.24% Noninterest Bearing Deposits / Deposits 31% 24% 30% Regulatory CRE / TRBC 216% 1
Slide 9: Transformational Merger Update
Page 9 Premier, differentiated regional bank positioned for growth Combined balance sheet well-positioned for either a rising rate or declining rate environment Exceptional financial benefits and upside for both sets of shareholders Transformational Merger Update - Compelling Investment Thesis Key T
Slide 10: Integration and Organic Growth Progress
Page 10 Integration and Organic Growth Progress • Extensive integration and conversion planning: - All application system decisions made • Business unit leaders confirmed, retained and working toward integration as planned • Actively monitoring and risk managing credit, rate and concentration risks
Slide 11: Go-to-Market Strategy & Opportunity
Page 11 GO-TO MARKET STRATEGY & OPPORTUNITY Houston, TXSouthern California(2)Denver, CO Seattle, WA Dallas, TX Phoenix, AZ San Antonio , TX Ontario, CA Regional business model structure with line of business overlay Operations in 6 of the Top 10 Fastest Growth MSAs… … And With a Presence in 8 of the
Slide 12: Regional Operations & Scale
Page 12 Eastern KS Loans: $668 Deposits: $248 Branches: 3 FTE: 33 Central / Western KS Loans: $191 Deposits: $1,388 Branches: 20 FTE: 118 Metro TX Loans: $2,415 Deposits: $1,449 Branches: 19 FTE: 140 El Paso Loans: $263 Deposits: $588 Branches: 5 FTE: 33 New Mexico Loans: $140 Deposits: $1,138 Branc
Slide 13: History of Sunflower Bank
Page 13 0.00% 2.00% 4.00% 6.00% 8.00% 10.00% 12.00% 1990 2000 2010 2024 Q2 Leverage Ratio NPAs / Loans + OREO NIM 0% 5% 10% 15% 20% 25% 30% 35% 40% 1990 2000 2010 2024 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 9,000 1990 2000 2010 2024 Q2 Total Assets (
Slide 14: Strong Organic Growth Underpinning Recent Operating Trends
Page 14 $3,595 $3,970 $5,908 $6,264 $6,335 $3,014 $3,466 $5,128 $5,452 $5,468 2020 2021 2022 2023 2024Q2 Total Loans excl. PPP & HFS Loans excl. PPP, HFS & NOO CRE $170 $252 2019 2024Q2 Annualized Non Interest Expense $198 $385 2019 2024Q2 Annualized Revenue $136 $155 $242 $293 $292 2020 2021 2022 2
Slide 15: Long-Term Credit Performance; Low-Cost, Low Beta Core Deposits
Page 15 56% 58% FSUN Deposit Beta Peer Deposit Beta 0.22% 0.21% 0.65% 1.94% 2.64% 2.93% 3.00% 3.11% 0.15% 0.18% 0.95% 2.26% 2.77% 3.01% 3.14% 3.17% 2021Q4 2022Q2 2022Q4 2023Q2 2023Q4 2024Q2 FSUN Peer Median 133% 167% 227% 127% 126% 2020 2021 2022 2023 2024 Q2 0.11% 0.09% (0.01%) 0.13% 0.61% 2020 202
Slide 16: C&I Relationship Banking: Vertical Focus in Growing Markets
Page 16 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 17: Loan Composition
Page 17 146% 136% 156% 146% 134% 207% 180% 186% 202% 202% 2020Y 2021Y 2022Y 2023Y 2024Q2 FirstSun Peer Median 38.4% 26.0% FirstSun Peer Median Construction 6% Residential R.E. 18% Multifamily 1% Owner Occupied C.R.E 10% Non-Owner Occupied C.R.E. 14% Commercial & Industrial 38% Consumer & Other 4% Ob
Slide 18: Operating Focus
Page 18 Operating Focus O p e ra ti n 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 operatin
Slide 19: Funding Composition: Low-Cost, Low Beta Deposits
Page 19 Loans / Cash + Securities / On-Hand Reliance on One Year GAP / AOCI & HTM Sec. FMV / Deposits Deposits Liquidity Ratio Wholesale Funding Assets Total Equity FirstSun 95.7% 16.1% 8.8% 8.4% 11.0% (4.5%) Peer Median 85.2% 28.6% 14.7% 10.0% 22.2% (12.5%)(1) (2) (3) (4) Demand Deposits 24%NOW & O
Slide 20: Focused Go-to-Market Strategy: Regional Model with Business Line Overlay
Page 20 FOCUSED GO-TO-MARKET STRATEGY: REGIONAL MODEL WITH BUSINESS LINE OVERLAY Strategic Deposit Growth 2024Q22015 Strong Organic Loan Growth in Select Metro Markets $ in millions, unless otherwise stated Metro Texas $1.4B 19 Branches $0.0B 0 Branches $1.4B 20 Branches $0.9B 20 Branches Central /
Slide 21: Revenue Mix
Page 21 % of Revenue ($000) Balance Total Net Interest Income $291,596 76% Wealth Management Service Fees 5,972 2% Treasury Management Service Fees 14,524 4% Deposit Service Fees 9,488 2% Interchange Service Fees 11,800 3% Mortgage Service Fee Income 44,172 11% Other Service Fee Income Sources 7,140
Slide 22: Appendix
as ota Bk oP APPENDIX
Slide 23: Introduction to FirstSun & Sunflower Management
Page 23 Introduction to FirstSun & Sunflower Management NEAL E. ARNOLD, CEO & President Neal E. Arnold serves as President and Chief Executive Officer of FirstSun since April 1, 2022 and for Sunflower since 2018. Mr. Arnold also serves as a board member for FirstSun and Sunflower Bank. He served as
Slide 24: Board of Directors (excluding management)
Page 24 Board of Directors (excluding management) CHRISTOPHER C. CASCIATO Christopher C. Casciato is a Managing Director of Lightyear Capital LLC, a position he has held since 2008. Before that, he spent over 20 years at Goldman, Sachs & Co., where he was elected partner in 2000. His career at Goldm
Slide 25: Asset Quality Summary
Page 25 133% 167% 227% 127% 126% 2020 2021 2022 2023 2024 Q2 0.11% 0.09% (0.01%) 0.13% 0.61% 2020 2021 2022 2023 2024 YTD Ann. 1.33% 1.20% 1.12% 1.28% 1.25% 2020 2021 2022 2023 2024 Q2 0.79% 0.60% 0.48% 0.85% 0.84% 2020 2021 2022 2023 2024 Q2 Asset Quality Summary Source: S&P Global Market Intellige
Slide 26: Non-GAAP Financial Measures and Reconciliations
Page 26 Tangible common equity: Total stockholders' equity (GAAP) 486$ 524$ 775$ 877$ 997$ Less: Goodwill and other intangible assets Goodwill (33) (33) (93) (93) (93) Other intangible assets (10) (8) (16) (11) (10) Tangible common equity (non-GAAP) 443$ 483$ 665$ 773$ 894$ Tangible assets: Total as
Slide 27: Non-GAAP Financial Measures and Reconciliations (continued)
Page 27 Non-GAAP Financial Measures and Reconciliations (continued) Source: Company Documents Core Net Income / Core Pre-Tax Pre-Provision Net Income: Net income (GAAP) 47.6$ 43.2$ 59.2$ 103.5$ 24.6$ Add: Merger costs, net of income taxes Merger related expenses - 3.1 18.8 - 1.0 Income tax effect on
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