FirstSun Capital and First Foundation Announce $785 Million Merger

On October 27, 2025, FirstSun Capital Bancorp and First Foundation Inc. announced a definitive agreement to merge in an all-stock transaction valued at approximately $785 million. Under the terms of the agreement, First Foundation shareholders will receive 0.16083 shares of FirstSun common stock for each share they own. Upon completion, FirstSun shareholders will own 59.5% of the combined entity, while First Foundation shareholders will hold 40.5%. The merger is expected to close in the second quarter of 2026, pending regulatory and shareholder approvals.

The combined company will have approximately $17 billion in total assets and $6.8 billion in assets under management, significantly expanding FirstSun's presence into the Southern California market. FirstSun's executive leadership will remain unchanged, with First Foundation's CEO, Tom Shafer, becoming vice chairman of the merged company.

FirstSun Capital Bancorp is the holding company for Sunflower Bank, N.A., headquartered in Dallas, Texas. The bank operates across several states, including Texas, Colorado, and New Mexico, offering a range of financial services to both individual and commercial clients. First Foundation Inc., based in Irvine, California, is a financial services company that provides personal banking, business banking, and wealth management services, primarily in California, Nevada, and Hawaii.

The merger is projected to deliver over 30% accretion to FirstSun's estimated earnings per share by 2027. The combined entity aims to achieve a Return on Average Assets (ROAA) of approximately 1.45% and a Return on Average Tangible Common Equity (ROATCE) of 13.3%. These metrics underscore the financial discipline driving the transaction.

This merger is part of a broader trend of consolidation in the regional banking sector, driven by the need to strengthen balance sheets amid economic uncertainties. For instance, Nicolet Bankshares recently announced an $864 million stock purchase of MidWestOne Financial Group. Such mergers aim to enhance financial stability and expand market reach.

The completion of the merger is contingent upon obtaining necessary regulatory approvals and the approval of shareholders from both companies. The parties anticipate closing the transaction in the second quarter of 2026.

The merger will result in a combined company with approximately $17 billion in total assets and $6.8 billion in assets under management. This expansion significantly enhances FirstSun's presence in the Southern California market, aligning with its strategic growth objectives. The executive leadership of FirstSun will remain unchanged, with Mollie Hale Carter as Executive Chairman, Neal Arnold as CEO, and Rob Cafera as CFO. Tom Shafer, the current CEO of First Foundation, will serve as Vice Chairman of the combined company. Additionally, five current First Foundation directors will join the combined company's board of directors.