News & Events zu Firstsun Capital Bancorp (FSUN)FSUNFirstsun Capital Bancorp

FirstSun Capital Shares Halted Due to Charge-Offs Impact

FirstSun Capital shares are set to resume trading at 5:00 pm ET, with quotes to resume at 4:55 pm ET, according to Nasdaq. Shares had been halted, pending news, as the company has disclosed that its Q2 results are to be adversely affected by charge-offs, primarily related to two commercial lending relationships, and related increases in provision for credit losses.

FirstSun Capital Expects $42 Million Charge-Off in Q2 2026

In a regulatory filing, the company states: "FirstSun Capital, the holding company for Sunflower Bank, National Association, expects its second quarter 2026 financial results to be adversely affected by charge-offs, primarily related to two commercial lending relationships, and related increases in our provision for credit losses. The first lending relationship is an asset-based loan to a materials distributor with an outstanding principal balance of approximately $23.6 million with no previous specific reserve as of March 31, 2026. Based on current information, we believe the borrower made fraudulent misrepresentations about its accounts receivable, collateral and historical financial results. The Bank initiated legal proceedings seeking the appointment of a receiver over the borrower and its assets, and a receiver has been appointed. While we plan to pursue all available sources of recovery and other means of mitigating the potential loss, at this time, we expect minimal recovery on the exposure. As a result, in the second quarter, we anticipate an approximate $22.0 million charge-off on this loan. We have notified the appropriate law enforcement authorities in connection with this matter. Based on our review of the circumstances, we believe this incident is an isolated occurrence and not indicative of broader exposure to fraud-related losses in connection with our lending activities. The second lending relationship is a commercial and industrial loan to a technology company with an outstanding principal balance of approximately $16.0 million with no previous specific reserve as of March 31, 2026. Based on recent developments impacting the borrower's business, including deterioration in the borrower's financial performance in the second quarter, we anticipate an approximate $12.9 million charge-off on this loan. Inclusive of the above-mentioned credit events, for the second quarter of 2026, we expect our provision for credit losses to be in the range of between $40 million and $41 million and charge-offs to be in the range of between $42 million and $43 million. As a result of these credit events, we are updating our 2026 full year credit outlook. For the full year 2026, inclusive of First Foundation Inc. beginning April 1, 2026, we expect net charge-offs to average loans to be in the high 50s range in basis points and we expect our allowance for credit losses to loans to be in the mid-140s to 150s range in basis points."