FirstSun Swings to $38.4M Profit as Credit Losses Collapse and Margin Widens
FSUN sits 33% above its 52-week low of $29.95.
Summary
FirstSun swung to $38.4 million of net income, or $0.82 per diluted share, in Q3 2026 from a $22.9 million loss in Q2, and adjusted EPS of $1.03 more than doubled the prior quarter's $0.45. The credit story is the big change: provision for credit losses fell to $4.4 million from $40.4 million, and net charge-offs dropped to $3.3 million (0.11% of average loans) from $42.4 million (1.45%) in Q2, when a $22 million fraud-related charge-off drove the loss. Net interest margin widened 24 basis points to 3.82% as the First Foundation balance-sheet repositioning — $1.3 billion of loans and $1.4 billion of securities sold in Q2 — lifted loan yields to 6.33%. Merger costs fell to $13.2 million from $57.6 million, and management said the First Foundation core system conversion was completed in late September. Nonperforming assets ticked up to 1.46% of total assets from 1.32%, and deposits fell 13.2% annualized to $13.0 billion, so watch whether the margin holds as the repositioned book seasons. The earnings call is October 27 at 11:00 a.m. ET.
At the time of this announcement, FSUN was trading at $39.80 on NASDAQ in the Finance sector, with a market capitalization of approximately $1.7B. The 52-week trading range was $29.95 to $42.34. This news item was assessed with positive market sentiment and an importance score of 8 out of 10. Source: BusinessWire.