FirstSun Capital and First Foundation Announce $785 Million Merger

FirstSun Capital Bancorp and First Foundation Inc. have announced a definitive agreement to merge in an all-stock transaction valued at approximately $785 million. The merger is expected to close in the second quarter of 2026, pending regulatory and shareholder approvals.

Under the terms of the agreement, First Foundation shareholders will receive 0.16083 shares of FirstSun common stock for each share they own. Post-merger, FirstSun shareholders will own 59.5% of the combined entity, while First Foundation shareholders will hold 40.5%. The combined organization will operate under the FirstSun and Sunflower Bank names, with total assets of approximately $17 billion and assets under management of $6.8 billion.

Mollie Hale Carter, Executive Chairman of FirstSun, stated, "This merger represents an exciting opportunity to strengthen our platform for long-term, sustainable growth, expand our earnings power, and drive greater value for our stockholders." She emphasized the strategic benefits of combining the two organizations, particularly in expanding their presence in the Southern California market.

The leadership team of the combined entity will include Mollie Hale Carter as Executive Chairman, Neal Arnold as CEO and President, and Tom Shafer, current CEO of First Foundation, as Vice Chairman.

The merger is projected to deliver compelling financial benefits, with estimated 2027 earnings per share (EPS) accretion of over 30% and a 3.3-year earn-back period on tangible book value dilution. Pro forma financial metrics for 2027 include a return on average assets of approximately 1.45% and a return on average tangible common equity of about 13.3%.

This transaction reflects a broader trend of consolidation in the regional banking sector, driven by credit concerns and economic uncertainties. For example, Nicolet Bankshares recently announced an $864 million stock purchase of MidWestOne Financial Group.

The merger is subject to customary closing conditions, including receipt of required regulatory approvals and approval by the stockholders of each company. The parties expect the closing of the proposed transaction to occur early in the second quarter of 2026.

This strategic combination aims to create a premier regional bank with a powerful footprint across dynamic markets, enhancing value for clients, employees, and stockholders over time.