Executive Summary

Q4 2024 delivered solid core performance with total revenue of $98.7M, NIM at 4.11%, and adjusted EPS of $0.86; GAAP EPS declined to $0.58 due to non‑recurring costs (terminated merger, ATM disposal, and brand write‑off) .
Deposit mix improved (CDs down, savings/MMDA up) and cost of deposits fell 29 bps QoQ, supporting stable NIM despite a 20 bps decline in earning‑asset yields; average deposits grew 3.0% annualized .
Asset quality remained resilient: net recoveries of 3 bps annualized, ACL increased to 1.38% with NPLs at 1.08% of loans; CET1 improved to 13.18% .
Strategic updates: rebranding Guardian Mortgage to Sunflower Bank Mortgage Lending and branch actions including Albuquerque relocation and new branch applications in San Diego and Los Angeles, CA .
Stock reaction catalyst: narrative centers on fee‑income diversification (~22% of revenue), improving funding costs/mix, robust capital, and expansion into Southern California; KBRA affirmed debt/deposit ratings earlier in January 2025, reinforcing confidence .

What Went Well and What Went Wrong

What Went Well

Deposit cost relief and mix shift: interest‑bearing deposit cost declined 29 bps QoQ to 2.87%, while savings/MMDA balances rose and CDs declined, supporting NIM stability at 4.11% .
Fee‑income diversification: noninterest income represented 21.9% of total revenue in Q4, with treasury management and mortgage banking contributing; the company highlights fee revenue at ~22% for Q4 (and ~23% FY) as a strategic strength .
Asset quality resilience: net recoveries (−$0.5M), ACL ratio increased to 1.38%, and NPLs were contained at 1.08% of loans; CFO cited pay‑off of a prior nonperforming loan in Q4 .
Management quote: “We are very pleased to deliver another strong quarter with positive operating leverage driving core earnings growth… continued strong net interest margin at 4.11% and deposit growth… diversified business mix” — Neal Arnold, CEO .

What Went Wrong

Non‑recurring charges pressured GAAP EPS: $5.8M net of tax terminated merger costs (~~$0.21 EPS), $1.5M net of tax ATM disposal (~~$0.05), and $0.6M net of tax brand write‑off (~$0.02) .
Provision elevation: provision for credit losses was $4.9M in Q4 on macro factors and one specific relationship deterioration (partly offset by a recovery), lifting ACL to 1.38% .
Loan balances declined 1.0% QoQ (EOP −$67.4M), primarily due to non‑owner‑occupied CRE downsizing; loan yield fell 16 bps to 6.55% amid declining rates .
Efficiency ratio increased to 74.66% on non‑recurring costs (adjusted 63.63%); GAAP ROAA/ROAE weakened QoQ (0.81%/6.25%) vs adjusted 1.21%/9.30% .

Financial Results

Core Performance vs Prior Periods

Metric	Q4 2023	Q3 2024	Q4 2024
Total Revenue ($USD Millions)	—	—	$98.7
Net Interest Income ($USD Millions)	$72.1	$76.2	$77.0
Noninterest Income ($USD Millions)	$17.2	$22.1	$21.6
Diluted EPS ($)	$0.94	$0.79	$0.58
Adjusted Diluted EPS ($)	$0.94	$0.84	$0.86
Net Interest Margin (%)	4.08%	4.10%	4.11%
Efficiency Ratio (%)	58.58%	65.83%	74.66%
Adjusted Efficiency Ratio (%)	58.58%	64.16%	63.63%
ROAA (%)	1.26%	1.13%	0.81%
Adjusted ROAA (%)	1.26%	1.19%	1.21%
ROAE (%)	11.19%	8.79%	6.25%
Adjusted ROAE (%)	11.19%	9.27%	9.30%

Trend Context (Last Two Quarters)

Metric	Q2 2024	Q3 2024	Q4 2024
Net Interest Income ($USD Millions)	$72.9	$76.2	$77.0
Noninterest Income ($USD Millions)	$23.3	$22.1	$21.6
Diluted EPS ($)	$0.88	$0.79	$0.58
Net Interest Margin (%)	4.02%	4.10%	4.11%
Efficiency Ratio (%)	66.42%	65.83%	74.66%
Loan to Deposit Ratio (%)	95.7%	96.9%	95.6%

Segment Breakdown (Loans EOP)

Category ($USD Millions)	Q4 2023	Q3 2024	Q4 2024
Commercial & Industrial	$2,467.7	$2,527.6	$2,497.8
CRE – Non‑Owner Occupied	$812.2	$821.7	$752.9
CRE – Owner Occupied	$635.4	$700.3	$702.8
Construction & Land	$345.4	$333.5	$362.7
Multifamily	$103.1	$95.1	$94.4
Residential Real Estate	$1,110.6	$1,172.5	$1,180.6
Public Finance	$602.9	$536.8	$554.8
Consumer	$36.4	$45.3	$41.3
Other	$153.4	$211.0	$189.2
Total Loans	$6,267.1	$6,443.8	$6,376.4

KPIs

KPI	Q4 2023	Q3 2024	Q4 2024
Loan to Deposit Ratio (%)	98.3%	96.9%	95.6%
ACL / Loans (%)	1.28%	1.29%	1.38%
NPLs / Loans (%)	1.01%	1.02%	1.08%
NPAs / Assets (%)	0.85%	0.86%	0.92%
Uninsured Deposits / Total Deposits (%)	31.2%	32.7%	34.8%
CET1 Ratio (%)	11.10%	13.06%	13.18%
Book Value per Share ($)	$35.14	$37.38	$37.58
Tangible Book Value per Share ($)	$30.96	$33.68	$33.94

Estimates vs Actuals

Metric	Consensus (Q4 2024)	Actual (Q4 2024)
EPS ($)	Unavailable (SPGI limit exceeded)*	$0.58 GAAP; $0.86 Adjusted
Total Revenue ($USD Millions)	Unavailable (SPGI limit exceeded)*	$98.7

*Values retrieved from S&P Global could not be accessed due to daily request limit; consensus will be incorporated once available.

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Noninterest Income Growth	FY 2025	High single‑digit to low double‑digit growth (Q1 2025 call)	Mid‑teens growth (FY 2025 outlook)	Raised
Noninterest Expense Growth	FY 2025	Mid to high single‑digit growth (Q1 2025 call)	Low double‑digit to low teens growth (FY 2025 outlook)	Raised (reflects investment)
Net Charge‑offs / Avg Loans	FY 2025	High teens to low 20s bps (Q1 2025 call)	Mid teens bps (FY 2025 outlook)	Lowered
Net Interest Income	FY 2025	—	Mid to slightly high single‑digit growth, assuming two 25 bp Fed cuts by end of Q2	New
NIM	FY 2025	—	Stable NIM (outlook narrative)	New
Deposits (EOP)	FY 2025	—	Mid single‑digit growth; CD decline, MMDA growth, NIB growth	New
Loans (EOP)	FY 2025	—	Mid single‑digit growth (primarily C&I)	New
Efficiency Ratio	FY 2025	—	Mid‑60s average	New
Tax Rate	FY 2025	—	20–22%	New
CET1 Ratio	FY 2025	—	Consistent	New
Dividends	FY 2025	Not discussed	Not discussed	—

Earnings Call Themes & Trends

Topic	Previous Mentions (Q2 & Q3 2024)	Current Period (Q4 2024)	Trend
Deposit costs/mix	Cost rising; CDs elevated; NIB 23.6% (Q2); mix pressures in elevated rate environment	Cost down 29 bps QoQ to 2.87%; CDs declined; savings/MMDA up; NIB 23.1%	Improving
Loan growth/yields	Loans up 3.3% ann. (Q2) and 6.7% ann. (Q3); loan yields up to 6.71% (Q3)	Loan EOP down 1.0% QoQ; loan yield down 16 bps to 6.55% on lower rates	Moderating
Fee income diversification	Noninterest income 24.2% of revenue in Q2	21.9% of revenue in Q4; mortgage & treasury management strong	Stable/high
Asset quality	Q2 net charge‑offs 0.13%, ACL 1.25%; Q3 provision increased on one relationship	Net recoveries −0.03%; ACL 1.38%; NPLs 1.08%	Resilient
Expansion/SoCal	—	Branch relocation approved (Albuquerque); apps filed for San Diego & Los Angeles	Expansion
Branding/technology	—	Guardian Mortgage rebranding; ATM network participation (disposal & contract change)	Strategic repositioning

Note: A Q4 2024 earnings call transcript was not available in our document catalog; themes derived from the earnings press release and investor presentation .

Management Commentary

“We are very pleased to deliver another strong quarter with positive operating leverage driving core earnings growth… continued strong net interest margin at 4.11% and deposit growth… diversified business mix…” — Neal Arnold, CEO .
Q4 actions: “Costs to dispose of a majority of our ATMs and amend our associated service contract as we move to participating in a national ATM network” and “write‑off of the Guardian Mortgage trade name as we are in the process of rebranding our residential mortgage business as Sunflower Bank Mortgage Lending” .
Strategic footprint: Operating across high‑growth Southwest/Western MSAs, strong fee mix, specialized C&I focus (investment thesis) .

Q&A Highlights

No Q4 2024 earnings call transcript was found in our document catalog; therefore, Q&A specific themes and any guidance clarifications are unavailable for this period. We searched for transcripts but did not locate a Q4 2024 call in the tools [ListDocuments Jan–Mar 2025 returned none; see our search and read steps].

Estimates Context

Wall Street consensus (S&P Global) for Q4 2024 EPS and revenue was unavailable due to a daily request limit on SPGI access; we will incorporate consensus comparisons once accessible. Actuals: EPS $0.58 GAAP / $0.86 adjusted; total revenue $98.7M .
With deposit cost relief, stable NIM, and fee‑income contribution, sell‑side estimates for 2025 likely need to reflect mid‑teens noninterest income growth, low‑teens expense growth (investment‑led), and mid‑single‑digit loan/deposit growth per outlook .
*Values retrieved from S&P Global could not be accessed due to daily request limit.

Key Takeaways for Investors

Funding tailwinds: A 29 bps QoQ decline in interest‑bearing deposit costs and favorable mix shift supported NIM stability at 4.11%; watch continued CD runoff vs MMDA/NIB growth .
Quality intact: Net recoveries in Q4, higher ACL coverage (1.38%), and contained NPLs (1.08%) underpin credit resilience; provision reflects conservative macro assumptions .
Core profitability masked by non‑recurring charges: Adjusted EPS of $0.86 vs GAAP $0.58; efficiency ratio adjusted to 63.63% vs reported 74.66% .
Strategic expansion: New branches planned in Southern California and mortgage rebranding enhance growth vectors and brand cohesion; investor presentations highlight scarcity value and fee‑income differentiation .
Capital strength: CET1 at 13.18% and tangible equity metrics improved; liquidity robust with balanced L/D and immediate borrowing access indicated in deck .
2025 setup: Management guides to mid‑single‑digit loan/deposit growth, stable NIM, mid‑teens noninterest income growth, and mid‑60s efficiency ratio, with NCOs mid‑teens bps — align positioning for potential Fed cuts and operating leverage .
Monitoring points: Non‑owner‑occupied CRE downsizing, deposit betas in a declining‑rate cycle, execution in new markets (SoCal), and sustained fee‑income momentum (mortgage, treasury) .

Additional Source Documents Reviewed

Q4 2024 earnings press release and investor presentation (Exhibits 99.1 and 99.2) .
Q3 2024 and Q2 2024 earnings press releases .
FY 2024 10‑K context: rebranding note and corporate background .
Governance 8‑K (Feb 25, 2025) for board representation updates (not operationally material to Q4) .

FIRSTSUN CAPITAL BANCORP (FSUN)·Q4 2024 Earnings Summary