FirstSun Capital and First Foundation Announce $785M Merger to Expand Market Presence

FirstSun Capital Bancorp (NASDAQ: FSUN) and First Foundation Inc. (NYSE: FFWM) have announced a definitive agreement to merge in an all-stock transaction valued at approximately $785 million. The merger, disclosed on October 27, 2025, aims to create a combined entity with enhanced financial strength and a significant presence in key growth markets.

Under the terms of the agreement, First Foundation shareholders will receive 0.16083 shares of FirstSun common stock for each share of First Foundation common stock they own. Additionally, First Foundation's warrant holders are expected to exercise their warrants early, receiving FirstSun common stock and an aggregate cash consideration of $17.5 million. Based on FirstSun's closing price as of October 24, 2025, the total transaction is valued at approximately $785 million.

Upon completion of the merger, FirstSun shareholders will own approximately 59.5% of the combined entity, while First Foundation shareholders will hold about 40.5%. The merger is anticipated to close in the second quarter of 2026, pending regulatory and shareholder approvals.

The combined organization will operate under the FirstSun and Sunflower Bank brands, boasting approximately $17 billion in total assets and $6.8 billion in assets under management. This strategic move significantly enhances FirstSun's presence in the Southern California market, adding 18 California branches to its existing nine-state footprint.

Leadership roles in the merged entity have been clearly defined. Mollie Hale Carter will continue as Executive Chairman, Neal Arnold as CEO and President, and Rob Cafera as CFO. Tom Shafer, current CEO of First Foundation, will serve as Vice Chairman of the combined company. Additionally, five directors from First Foundation will join the board of the merged entity, ensuring representation from both organizations.

The merger is projected to deliver over 30% accretion to FirstSun's 2027 estimated earnings per share, with a tangible book value dilution earn-back period of approximately 3.3 years. Pro forma financial metrics for 2027 include a return on average assets of approximately 1.45%, a return on average tangible common equity of about 13.3%, and fee income constituting around 20% of total revenue.

This merger reflects a broader trend of consolidation among regional banks, aiming to strengthen balance sheets amid economic uncertainties. For instance, Nicolet Bankshares recently announced an $864 million stock acquisition of MidWestOne Financial Group.

FirstSun Capital Bancorp, headquartered in Denver, Colorado, operates through its subsidiary, Sunflower Bank, serving communities across multiple states with a range of financial services. First Foundation Inc., based in Irvine, California, offers banking, trust, and wealth management services, primarily in the Western United States.

The merger is poised to enhance financial services accessibility in Southern California, potentially leading to job creation and economic growth in the region. However, consolidations can also result in branch closures and workforce reductions, impacting local communities. The combined entity's increased asset base and diversified service offerings may provide greater financial stability and competitive positioning in the market.

As the banking industry continues to evolve, such strategic mergers are likely to play a pivotal role in shaping the future landscape, offering enhanced services and stability to customers and stakeholders alike.