Executive Summary

EPS beat but top-line (S&P-defined revenue) missed: diluted EPS was $0.83 vs S&P consensus $0.80 (+4%); S&P “Revenue” was $92.4m vs $99.5m consensus (−7%). Company-reported net interest income (NII) was $74.5m and noninterest income $21.7m (total revenue definition used by the company = $96.2m). Drivers: stable NIM (4.07%), modest sequential NII downtick (day count, lower average loans), and mixed fee income (mortgage/MSR headwinds offset by swap/syndication and treasury management) . EPS/Revenue consensus figures marked with * (Values retrieved from S&P Global).
Balance sheet momentum: loans +6.8% annualized QoQ to $6.48B (C&I +$137m; CRE −$28m), deposits +12.3% annualized to $6.87B; loan-to-deposit ratio improved to 94.3% .
Credit quality largely benign but one idiosyncratic nonaccrual: net charge-offs 4 bps; NPLs/loans rose to 1.21% due to a single ~$13m C&I credit with cross‑border manufacturing exposure; ACL/loans increased to 1.42% .
Guidance/tone: maintained mid-single-digit loan/deposit growth; lowered NII guide (average balance dynamics, rate path); lowered expense guide (variable comp tied to lower fee outlook); 2025 efficiency mid‑60s, NCOs high-teens to low‑20s bps; tax rate 20–22% .
Potential stock catalysts: sustained >4% NIM with improving deposit mix, loan growth outperformance vs peers, and capital strength (CET1 13.26%); offsets include top‑line miss vs S&P “revenue,” higher NPLs from the single credit, and macro/tariff uncertainty .

What Went Well and What Went Wrong

What Went Well

NIM durability and healthy spread: NIM held at 4.07% (10 straight quarters ≥4% per management), with deposit costs easing and mix improving (noninterest-bearing 22.9%; CDs expected to decline, growth in MMDA/NIB) .
Core growth and liquidity: loans +$108m QoQ (C&I-led) and deposits +$202m QoQ; loan-to-deposit ratio improved to 94.3%; wholesale funding reliance down to ~7% .
Fee momentum in targeted areas: swap/syndication revenues +~$600k QoQ (+111%); treasury management fees increased, consistent with C&I relationship growth .

Quote: “We’re quite pleased with the start for the year… NIM of 4.07% and solid loan and deposit growth…” — CEO Neal Arnold .

What Went Wrong

Top-line shortfall vs S&P “revenue”: S&P “Revenue” actual $92.4m vs $99.5m consensus (miss), with sequential NII down ~3% (day count, lower average loans) and mixed service fees (lower consumer deposit fees, card volumes, mortgage MSR capitalization) .
Asset quality optics: NPLs/loans up to 1.21% driven by a single ~$13m C&I credit moved to nonaccrual; management raised full‑year NCO outlook to high‑teens/low‑20s bps (specific reserve established) .
Lowered NII and expense guides: NII trimmed due to back‑end‑loaded Q1 balances and rate‑path timing; expense guide lowered on softer fee outlook (mortgage, interchange) and variable comp .

Financial Results

Metric	Q1 2024	Q4 2024	Q1 2025
Diluted EPS ($)	$0.45	$0.58	$0.83
Net Income ($m)	$12.30	$16.35	$23.57
Net Interest Income ($m)	$70.81	$77.05	$74.48
Noninterest Income ($m)	$22.81	$21.64	$21.73
Net Interest Margin (%)	4.01%	4.09%	4.07%
Efficiency Ratio (%)	66.05%	74.66%	65.19%
ROAA (%)	0.65%	0.81%	1.20%

Estimates vs Actual (S&P Global)

Metric	Consensus	Actual	Surprise
EPS (Primary, $)	0.797*	0.83	+$0.03 (+4%)*
Revenue (S&P “Revenue”, $m)	99.46*	92.41*	−$7.05 (−7%)*

Notes: Company’s “total revenue” is NII + noninterest income = $96.21m in Q1 2025 (74.48 + 21.73); S&P’s revenue construct differs and is used for estimate comparisons . Values marked with * retrieved from S&P Global.

Segment Performance (Income before income taxes basis)

Segment ($m)	Q1 2024	Q1 2025
Banking – Net interest income	68.52	70.34
Banking – Noninterest income	12.72	12.10
Banking – Noninterest expense	47.29	48.71
Banking – Income before taxes	16.09	29.66
Mortgage Ops – Net interest income	3.52	5.33
Mortgage Ops – Noninterest income	10.09	9.63
Mortgage Ops – Noninterest expense	11.87	12.88
Mortgage Ops – Income before taxes	3.10	2.35

Key KPIs

KPI	Q1 2024	Q4 2024	Q1 2025
Loans ($m, EOP)	6,284.87	6,376.36	6,484.01
Deposits ($m, EOP)	6,445.39	6,672.26	6,874.24
Loan-to-Deposit Ratio (%)	97.5%	95.6%	94.3%
NPLs/Loans (%)	0.92%	1.08%	1.21%
ACL/Loans (%)	1.27%	1.38%	1.42%
Net Charge-offs/Average Loans (%)	1.12%	(0.03%)	0.04%
CET1 (%)	12.54%	13.18%	13.26%
Tangible BV/Share ($)	31.37	33.94	34.88

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Loans (EOP)	FY 2025	Mid-single-digit (prior commentary)	Mid-single-digit growth	Maintained
Deposits (EOP)	FY 2025	Mid-single-digit (prior commentary)	Mid-single-digit growth	Maintained
Net Interest Income	FY 2025 vs 2024	Higher previously implied	Mid-single-digit growth; timing of rate cuts and Q1 average balance dynamics cited	Lowered
Noninterest Income	FY 2025 vs 2024	—	High single- to low double-digit growth	Set/affirmed
Noninterest Expense	FY 2025 vs 2024 adj.	Higher previously implied (variable comp)	Mid- to high single-digit growth vs 2024 adjusted $248.0m baseline	Lowered
Efficiency Ratio	FY 2025	~Mid-60s (prior)	Mid-60s average for year	Maintained
Net Charge-offs	FY 2025	—	High teens to low 20s bps	Provided/affirmed
Tax Rate	FY 2025	—	20–22%	Provided/affirmed
CET1	FY 2025	—	Consistent	Provided/affirmed

Earnings Call Themes & Trends

Topic	Previous Mentions (Q3 & Q4 2024)	Current Period (Q1 2025)	Trend
NIM & Deposit Costs	NIM ≥4% across recent quarters; deposit costs elevated but stabilizing	NIM 4.07% (non‑FTE), deposit mix improving; expect tight pricing; deposit beta ~50% near term	Stable NIM; incremental mix/tailwind
Credit Quality	Low NCOs; ACL build; NPL ratio creeping higher	NCOs 4 bps; one ~$13m C&I nonaccrual; ACL/loans 1.42%; 2025 NCO guide high‑teens/low‑20s bps	Slight deterioration from single credit; outlook conservative
Fee Income Mix	Service fee revenue ~22–24% of total; mortgage variable	Swap/syndication +$0.6m; treasury mgmt up; consumer fees and mortgage MSR weaker	Mixed; noninterest income guide still strong
Southern California Expansion	New teams/locations ramping	New branches opened in San Diego & Los Angeles; “couple hundred million” deposits already	Positive traction
Macro/Tariffs	Cautious tone into 2025	Tariff headlines creating caution; pipeline still solid	Cautious but resilient demand
M&A Posture	Opportunistic, in‑footprint	Remains opportunistic; avoiding deals with outsized asset marks; focus on capital preservation	Patient/Selective

Management Commentary

“We… achieved net income of $23.6 million, EPS of $0.83 and a 1.20% ROA… NIM 4.07% and solid loan and deposit growth…” — Neal Arnold, CEO .
“Loan growth was strong… C&I up; CRE down… deposits up ~$200m; noninterest‑bearing stable at 22.9%; L/D 94.3%...” — Rob Cafera, CFO .
“Swap and syndication revenues were up about $600,000 (~111%)… treasury management fees grew; consumer deposit service revenues down ~9%; interchange volumes down ~8% QoQ; mortgage revenue down on MSR capitalization/prepay speeds.” — CFO .
“NPLs rose 13 bps to 1.21% from one larger credit to nonaccrual; 2025 NCOs expected high‑teens to low‑20s bps; specific reserve established.” — CFO .
On guidance: “We moved expense guide lower… linked to fee guide and macro; mortgage slowdown and lower interchange… NII lower tied to Q1 average balances and rate path.” — CFO .

Q&A Highlights

Expenses and fees linked: Expense guide lowered alongside reduced fee outlook (mortgage, interchange); variable comp avoided pressure .
Loan growth and competition: C&I pricing “remains strong,” pipeline solid; activity accelerated late in quarter .
Deposits & NIM: Expect continued mix improvement; pricing competitive; stable NIM; significant SoCal deposit traction already (“couple hundred million”) .
NII guide lowered: Reflects back‑end‑loaded Q1 loan growth and timing of rate cuts; still mid‑single‑digit NII growth for 2025 .
M&A: Opportunistic, in‑footprint; unwilling to assume large asset marks that could risk shareholders in current market .

Estimates Context

EPS beat: $0.83 actual vs $0.797 consensus (+$0.03); revenue (S&P construct) missed: $92.4m actual vs $99.5m consensus (−$7.1m). Company-reported “total revenue” (NII + noninterest income) was $96.2m, reflecting stable NIM and mixed fee trends . Values marked with * retrieved from S&P Global.
Revisions likely: Modest upward EPS revisions possible from better NIM stability and expense control; revenue models may adjust to reflect S&P’s revenue construct and fee mix, and to incorporate management’s lowered NII and expense guides .

Q1 2025	EPS	Revenue ($m)
Consensus (S&P)	0.797*	99.457*
Actual	0.83	92.407*

Key Takeaways for Investors

NIM resilience remains the differentiator: >4% across 10 consecutive quarters, with improving deposit mix and manageable betas underpinning spread defensibility .
C&I‑led growth with disciplined CRE: C&I expansion in attractive markets, CRE exposure shrinking; regulatory CRE/capital ratio at ~115% supports flexibility .
Credit manageable despite a lumpy C&I issue: Single nonaccrual drove NPL uptick; NCO guide remains low in absolute terms (high‑teens/low‑20s bps) with specific reserve in place .
Expense framework tightening: Lowered expense guide offsets fee moderation; efficiency ratio target mid‑60s suggests continued focus on positive operating leverage .
Southern California build‑out gaining traction: Early deposit wins support medium‑term funding and relationship growth .
Watch top‑line definitions: S&P “Revenue” miss contrasts with company “total revenue”; model to the S&P construct for beats/misses and the company construct for operating analysis .
Near‑term trading setup: EPS beat vs consensus and strong capital (CET1 13.26%) vs top‑line miss and NPL uptick; trajectory hinges on deposit-cost discipline, pipeline conversion, and macro/tariff path .

Footnote: Estimates (consensus and S&P revenue actuals) marked with * are Values retrieved from S&P Global.

FIRSTSUN CAPITAL BANCORP (FSUN)·Q1 2025 Earnings Summary