FIRSTSUN CAPITAL BANCORP 10-Q

Item 1. Financial Statements (Unaudited) Index to Consolidated Financial Statements Page Consolidated Balance Sheets 6 Consolidated Statements of Income and Comprehensive Income 7 Consolidated Statements of Stockholders' Equity 8 Consolidated Statements of Cash Flows 10 Notes to Consolidated Financial Statements 12 Note 1 - Organization and Basis of Presentation 12 Note 2 - Securities 14 Note 3 - Loans 18 Note 4 - Mortgage Servicing Rights 28 Note 5 - Derivative Financial Instruments 29 Note 6 - Deposits 32 Note 7 - Debt 33 Note 8 - Earnings Per Share 34 Note 9 - Stockholders' Equity 35 Note 10 - Income Taxes 37 Note 11 - Regulatory Capital Matters 38 Note 12 - Fair Value Measurements 39 Note 13 - Segment Information 42 Note 14 - Commitments and Contingencies 47 Note 15 - Lease Commitments 49 Note 1 6 - Subsequent Events 50 5 FIRSTSUN CAPITAL BANCORP and Subsidiaries Consolidated Balance Sheets As of (Unaudited) (In thousands, except par and share amounts) September 30, 2025 December 31, 2024 Assets Cash and cash equivalents $ 659,899 $ 615,917 Securities available-for-sale, at fair value 476,114 469,076 Securities held-to-maturity, fair value of $ 29,705 and $ 29,563 , respectively 34,247 35,242 Loans held-for-sale, at fair value 85,250 61,825 Loans, net of allowance for credit losses of $ 84,040 and $ 88,221 , respectively 6,597,589 6,288,136 Mortgage servicing rights, at fair value 85,695 84,258 Premises and equipment, net 81,886 82,483 Other real estate owned and foreclosed assets, net 13,418 5,138 Bank-owned life insurance 82,722 81,115 Restricted equity securities 24,765 28,917 Goodwill 93,483 93,483 Core deposits and other intangible assets, net 5,650 7,434 Accrued interest receivable 34,796 32,102 Deferred tax assets, net 35,989 41,195 Prepaid expenses and other assets 183,934 171,066 Total assets $ 8,495,437 $ 8,097,387 Liabilities and Stockholders’ Equity Liabilities: Deposits: Noninterest-bearing accounts $ 1,674,497 $ 1,541,158 Interest-bearing accounts 5,430,918 5,131,102 Total deposits 7,105,415 6,672,260 Securities sold under agreements to repurchase 9,824 14,699 Federal Home Loan Bank advances — 135,000 Subordinated debt, net 76,163 75,841 Accrued interest payable 8,061 8,705 Accrued expenses and other liabilities 168,461 149,516 Total liabilities 7,367,924 7,056,021 Commitments and contingencies ( Note 14 ) Stockholders’ equity: Preferred stock, $ 0.0001 par value, 10,000,000 shares authorized, none issued or outstanding, respectively — — Common stock, $ 0.0001 par value; 50,000,000 shares authorized; 27,854,764 and 27,709,679 shares issued and outstanding, respectively 3 3 Additional paid-in capital 548,952 547,325 Retained earnings 606,279 533,150 Accumulated other comprehensive loss, net ( 27,721 ) ( 39,112 ) Total stockholders’ equity 1,127,513 1,041,366 Total liabilities and stockholders’ equity $ 8,495,437 $ 8,097,387 The accompanying notes are an integral part of these consolidated financial statements. 6 FIRSTSUN CAPITAL BANCORP and Subsidiaries Consolidated Statements of Income and Comprehensive Income For the three and nine months ended September 30, (Unaudited) Three months ended September 30, Nine months ended September 30, (In thousands, except per share amounts) 2025 2024 2025 2024 Interest income: Interest and fee income on loans: Taxable $ 104,498 $ 104,186 $ 302,289 $ 302,338 Tax exempt 4,594 4,255 13,600 13,555 Interest and dividend income on securities: Taxable 4,362 4,767 13,158 14,017 Tax exempt 14 2 21 11 Other interest income 7,660 5,722 19,428 13,580 Total interest income 121,128 118,932 348,496 343,501 Interest expense: Interest expense on deposits 38,525 39,585 110,104 114,459 Interest expense on securities sold under agreements to repurchase 37 44 110 148 Interest expense on other borrowed funds 1,613 3,145 4,352 9,031 Total interest expense 40,175 42,774 114,566 123,638 Net interest income 80,953 76,158 233,930 219,863 Provision for credit losses 10,100 5,000 18,400 22,700 Net interest income after credit loss expense 70,853 71,158 215,530 197,163 Noninterest income: Service charges on deposit accounts 2,162 2,560 6,205 7,276 Treasury management service fees 4,402 3,748 12,929 10,847 Credit and debit card fees 2,671 2,738 7,985 8,447 Trust and investment advisory fees 1,536 1,395 4,430 4,351 Income from mortgage banking services, net 12,641 8,838 34,970 29,383 Loss on other real estate owned and foreclosed assets activity, net ( 27 ) ( 19 ) ( 27 ) ( 8 ) Other noninterest income 2,948 2,815 8,643 7,861 Total noninterest income 26,333 22,075 75,135 68,157 Noninterest expense: Salary and employee benefits 44,822 39,306 128,304 116,487 Occupancy and equipment 9,591 9,121 28,668 26,417 Amortization and impairment of intangible assets 578 651 1,784 2,118 Terminated merger related expenses — 1,633 — 5,168 Other noninterest expenses 13,910 13,953 40,977 40,177 Total noninterest expense 68,901 64,664 199,733 190,367 Income before income taxes 28,285 28,569 90,932 74,953 Provision for income taxes 5,111 6,147 17,803 15,675 Net income $ 23,174 $ 22,422 $ 73,129 $ 59,278 Other comprehensive income: Net unrealized gain on securities available-for-sale 7,935 11,132 11,391 13,018 Other comprehensive income 7,935 11,132 11,391 13,018 Comprehensive income $ 31,109 $ 33,554 $ 84,520 $ 72,296 Earnings per share: Net income available to common stockholders $ 23,174 $ 22,422 $ 73,129 $ 59,278 Basic $ 0.83 $ 0.81 $ 2.63 $ 2.17 Diluted $ 0.82 $ 0.79 $ 2.59 $ 2.12 The accompanying notes are an integral part of these consolidated financial statements. 7 FIRSTSUN CAPITAL BANCORP and Subsidiaries Consolidated Statements of Stockholders’ Equity For the three months ended September 30, (Unaudited) (in thousands, except share amounts) Issued shares of common stock Common stock Additional paid-in capital Retained earnings Accumulated other comprehensive income (loss) Total stockholders’ equity 2025 Balance, beginning of period 27,834,525 $ 3 $ 547,950 $ 583,105 $ ( 35,656 ) $ 1,095,402 Net income — — — 23,174 — 23,174 Other comprehensive income — — — — 7,935 7,935 Share-based compensation expense, net of forfeitures — — 1,243 — — 1,243 Restricted stock activity, net of forfeitures (See Note 9 - Stockholders’ Equit y) 4,802 — ( 45 ) — — ( 45 ) Stock option exercises, net 15,437 — ( 196 ) — — ( 196 ) Balance, end of period 27,854,764 $ 3 $ 548,952 $ 606,279 $ ( 27,721 ) $ 1,127,513 2024 Balance, beginning of period 27,443,246 $ 3 $ 543,339 $ 494,378 $ ( 41,121 ) $ 996,599 Net income — — — 22,422 — 22,422 Other comprehensive income — — — — 11,132 11,132 Share-based compensation expense, net of forfeitures — — 549 — — 549 Issuance of common stock, net of issuance costs — — ( 128 ) — — ( 128 ) Restricted stock activity, net of forfeitures (See Note 9 - Stockholders’ Equit y) — — — — — — Stock option exercises, net 222,672 — 3,511 — — 3,511 Balance, end of period 27,665,918 $ 3 $ 547,271 $ 516,800 $ ( 29,989 ) $ 1,034,085 The accompanying notes are an integral part of these consolidated financial statements. 8 FIRSTSUN CAPITAL BANCORP and Subsidiaries Consolidated Statements of Stockholders’ Equity For the nine months ended September 30, (Unaudited) (in thousands, except share amounts) Issued shares of common stock Common stock Additional paid-in capital Retained earnings Accumulated other comprehensive income (loss) Total stockholders’ equity 2025 Balance, beginning of period 27,709,679 $ 3 $ 547,325 $ 533,150 $ ( 39,112 ) $ 1,041,366 Net income — — — 73,129 — 73,129 Other comprehensive income — — — — 11,391 11,391 Share-based compensation expense, net of forfeitures — — 2,935 — — 2,935 Restricted stock activity, net of forfeitures (See Note 9 - Stockholders’ Equit y) 75,831 — ( 524 ) — — ( 524 ) Stock option exercises, net 69,254 — ( 784 ) — — ( 784 ) Balance, end of period 27,854,764 $ 3 $ 548,952 $ 606,279 $ ( 27,721 ) $ 1,127,513 2024 Balance, beginning of period 24,960,639 $ 2 $ 462,680 $ 457,522 $ ( 43,007 ) $ 877,197 Net income — — — 59,278 — 59,278 Other comprehensive income — — — — 13,018 13,018 Share-based compensation expense, net of forfeitures — — 1,813 — — 1,813 Issuance of common stock, net of issuance costs 2,461,538 1 79,355 — — 79,356 Restricted stock activity, net of forfeitures (See Note 9 - Stockholders’ Equit y) 10,998 — — — — — Stock option exercises, net 232,743 — 3,423 — — 3,423 Balance, end of period 27,665,918 $ 3 $ 547,271 $ 516,800 $ ( 29,989 ) $ 1,034,085 The accompanying notes are an integral part of these consolidated financial statements. 9 FIRSTSUN CAPITAL BANCORP and Subsidiaries Consolidated Statements of Cash Flows For the nine months ended September 30, (Unaudited) (In thousands) 2025 2024 Cash flows from operating activities: Net income $ 73,129 $ 59,278 Adjustments to reconcile income to net cash provided by operating activities: Provision for credit losses 18,400 22,700 Depreciation and amortization on premises and equipment 6,170 5,441 Deferred tax expense 6,618 2,531 Amortization of net premium on securities 401 552 Accretion of net discount on acquired loans ( 976 ) ( 2,036 ) Net change in deferred loan origination fees and costs 3,899 8 Amortization of core deposits and other intangible assets 1,784 2,118 Amortization of premium on acquired deposits ( 54 ) ( 300 ) Accretion of discount on subordinated debt 211 287 Amortization of issuance costs on subordinated debt 110 110 Increase in cash surrender value of bank-owned life insurance ( 1,607 ) ( 1,457 ) Impairment of other real estate owned and foreclosed assets 672 53 Federal Home Loan Bank stock dividends ( 478 ) ( 560 ) Share-based compensation expense 2,935 1,813 Decrease in fair value of mortgage servicing rights 9,111 6,687 Net loss on disposal of premises and equipment 180 21 Net loss on other real estate owned and foreclosed assets activity 27 8 Net gain on sales of loans held-for-sale ( 7,723 ) ( 5,300 ) Origination of loans held-for-sale ( 1,017,631 ) ( 502,485 ) Proceeds from sales of loans held-for-sale 991,380 482,741 Changes in operating assets and liabilities: Lease right-of-use assets ( 160 ) ( 234 ) Accrued interest receivable ( 2,694 ) 1,388 Prepaid expenses and other assets 24,143 6,889 Accrued interest payable ( 644 ) ( 4,562 ) Accrued expenses and other liabilities ( 11,370 ) 20,467 Deferred tax assets ( 5,100 ) — Net cash provided by operating activities $ 90,733 $ 96,158 The accompanying notes are an integral part of these consolidated financial statements. 10 FIRSTSUN CAPITAL BANCORP and Subsidiaries Consolidated Statements of Cash Flows (continued) For the nine months ended September 30, (Unaudited) (In thousands) 2025 2024 Cash flows from operating activities: (previous page) $ 90,733 $ 96,158 Cash flows from investing activities: Proceeds from maturities of held-to-maturity securities 1,092 1,182 Purchases of available-for-sale securities ( 21,595 ) ( 5,584 ) Proceeds from paydowns, sales or maturities of available-for-sale securities 29,143 42,642 Loan originations, net of repayments ( 340,654 ) ( 198,011 ) Purchases of premises and equipment ( 5,753 ) ( 3,151 ) Proceeds from sales of other real estate owned and foreclosed assets 249 324 Proceeds from bank-owned life insurance — 725 Purchases of restricted equity securities ( 661 ) ( 44,037 ) Proceeds from the sale or redemption of restricted equity securities 5,289 50,275 Purchase of other investments ( 6,585 ) ( 17,490 ) Proceeds from the sale or redemption of other investments 698 671 Net cash used in investing activities ( 338,777 ) ( 172,454 ) Cash flows from financing activities: Net change in deposits 433,209 276,077 Net change in securities sold under agreements to repurchase ( 4,875 ) ( 13,780 ) Proceeds from Federal Home Loan Bank advances 293,000 4,015,410 Repayments of Federal Home Loan Bank advances ( 428,000 ) ( 4,189,878 ) Proceeds from issuance of common stock, net of issuance costs and taxes paid on cashless exercise of equity awards ( 1,308 ) 82,779 Net cash provided by financing activities 292,026 170,608 Net increase in cash and cash equivalents 43,982 94,312 Cash and cash equivalents, beginning of period 615,917 479,362 Cash and cash equivalents, end of period $ 659,899 $ 573,674 Supplemental disclosures of cash flow information: Interest paid on deposits $ 110,941 $ 118,615 Interest paid on borrowed funds $ 4,370 $ 9,322 Cash paid for income taxes, net $ 12,180 $ 5,611 Non-cash investing and financing activities: Net change in unrealized gain (loss) on available-for-sale securities $ 15,079 $ 17,232 Loan charge-offs $ 23,839 $ 21,608 Loans transferred to other real estate owned and foreclosed assets $ 9,228 $ 764 Mortgage servicing rights resulting from sale or securitization of mortgage loans $ 10,548 $ 8,785 The accompanying notes are an integral part of these consolidated financial statements. 11 FIRSTSUN CAPITAL BANCORP and Subsidiaries Notes to Consolidated Financial Statements (Unaudited) ($ in thousands, except share and per share amounts) NOTE 1 - Organization and Basis of Presentation Nature of Operations - The consolidated financial statements include the accounts of FirstSun Capital Bancorp (“FirstSun” or “Parent Company”) and its wholly-owned subsidiaries, Sunflower Bank, N.A. (the “Bank” or “Sunflower Bank”), Sunflower Wealth Advisors, LLC (“SWA”), and FEIF Capital Partners, LLC, and have been prepared using U.S. generally accepted accounting principles (“U.S. GAAP”) and prevailing practices in the banking industry. All significant intercompany balances and transactions have been eliminated. These entities are collectively referred to as “our”, “us”, “we”, or “the Company”. These consolidated financial statements in this Quarterly Report on Form 10-Q do not include all of the information and footnotes required by U.S. GAAP for a full year presentation and certain disclosures have been condensed or omitted in accordance with rules and regulations of the SEC. These interim financial statements are unaudited, and include, in our opinion, all adjustments necessary for a fair statement of the results for the periods indicated, which are not necessarily indicative of results which may be expected for the full year. These unaudited consolidated financial statements and notes should be read in conjunction with FirstSun’s audited consolidated financial statements and footnotes thereto for the year ended December 31, 2024, included in our 2024 Annual Report . Use of Estimates - The preparation of consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions based on available information. These estimates and assumptions affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. These estimates are based on historical experience and on various assumptions about the future that are believed to be reasonable based on all available information. Our reported financial position or results of operations may be materially different under changed conditions or when using different estimates and assumptions, particularly with respect to critical accounting policies. In the event that estimates or assumptions prove to differ from actual results, adjustments are made in subsequent periods to reflect more current information. Reclassifications - Some items in the prior year financial statements were reclassified to conform to the current presentation. Reclassifications had no effect on prior years net income or stockholders’ equity. Accounting Pronouncements Recently Adopted - As an “emerging growth company” under Section 107 of the JOBS Act, we can take advantage of the extended transition period provided in Section 7(a)(2)(B) of the Securities Act for complying with new or revised accounting standards. Therefore, we can delay the adoption of certain accounting standards until those standards would otherwise apply to non-public business entities. We intend to take advantage of the benefits of this extended transition period for an “emerging growth company” for as long as it is available to us. For standards that we have delayed adoption, we may lack comparability to other companies who have adopted such standards. In November of 2023, the FASB issued ASU 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures , which improves reportable segment disclosure requirements, primarily through enhanced disclosures about significant segment expenses. We adopted the amendments in this ASU on January 1, 2024. A description of each business and the methodologies used to measure financial performance is described in Note 13 - Segment Information and in our 2024 Annual Report . 12 Recent Accounting Pronouncements Not Yet Adopted - ASU No. 2023-09, “Income Taxes (Topic 740): Improvements to Income Tax Disclosures.” ASU 2023-09 requires public business entities to disclose in their rate reconciliation table additional categories of information about federal, state and foreign income taxes and to provide more details about the reconciling items in some categories if items meet a quantitative threshold. ASU 2023-09 also requires all entities to disclose income taxes paid, net of refunds, disaggregated by federal, state and foreign taxes for annual periods and to disaggregate the information by jurisdiction based on a quantitative threshold, among other things. ASU 2023-09 is effective for us on January 1, 2026; however early adoption is permitted. ASU 2023-09 is not expected to have a significant impact on our financial statements. ASU No. 2024-03, “Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses.” ASU 2024-03 requires disaggregated disclosure of income statement expenses for public business entities. ASU 2024-03 requires new financial statement disclosures in tabular format, disaggregating information about prescribed categories underlying any relevant income statement expense caption. The prescribed categories include, among other things, employee compensation, depreciation, and intangible asset amortization. Additionally, entities must disclose the total amount of selling expenses and, in annual reporting periods, an entity’s definition of selling expenses. ASU 2024-03 is effective for us, on a prospective basis, for annual periods beginning January 1, 2027, and interim periods within fiscal years beginning January 1, 2028, though early adoption and retrospective application is permitted. ASU 2024-03 is not expected to have a significant impact on our financial statements. ASU No. 2025-05, “Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses for Accounts Receivable and Contract Assets.” ASU 2025-05 applies to current contract assets arising from transactions accounted for under ASC Topic 606 - Revenue from Contracts with Customers by reducing the cost and complexity of applying the current expected credit loss model to short-term receivables or contract assets when the benefits of detail forecasting may be minimal. Under the practical expedient election entities can assume that current conditions as of the balance sheet date do not change for the remaining life of the asset ASU 2025-05 will be effective for us in 2026 and is not expected to have a significant impact on our financial statements. ASU No. 2025-06, “Intangibles - Goodwill and Other - Internal-Use Software (Subtopic 350-40): Targeted Improvements to the Accounting for Internal-Use Software” ASU 2025-06 modernizes the internal-use software accounting model by eliminating the “stage-of-development” framework and instead establishing two key criteria for capitalization: (1) management has authorized and committed funding for the project; and (2) it is probable that the project will be completed and the software will be used as intended, with no significant unresolved development uncertainties. ASU 2025-06 will be effective for us in 2028 and is not expected to have a significant impact on our financial statements. 13 NOTE 2 - Securities The amortized cost, gross unrealized gains and losses, and fair values of available-for-sale and held-to-maturity debt securities by type follows as of: Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value September 30, 2025 Available-for-sale: U.S. treasury $ 35,179 $ — $ ( 2,128 ) $ 33,051 U.S. agency 543 — ( 6 ) 537 Obligations of states and political subdivisions 29,518 46 ( 1,668 ) 27,896 Mortgage backed - residential 110,315 337 ( 11,161 ) 99,491 Collateralized mortgage obligations 169,057 — ( 14,932 ) 154,125 Mortgage backed - commercial 152,448 1,165 ( 8,834 ) 144,779 Other debt 15,749 486 — 16,235 Total available-for-sale $ 512,809 $ 2,034 $ ( 38,729 ) $ 476,114 Held-to-maturity: Obligations of states and political subdivisions $ 25,845 $ 1 $ ( 4,062 ) $ 21,784 Mortgage backed - residential 5,762 1 ( 362 ) 5,401 Collateralized mortgage obligations 2,640 — ( 120 ) 2,520 Total held-to-maturity $ 34,247 $ 2 $ ( 4,544 ) $ 29,705 December 31, 2024 Available-for-sale: U.S. treasury $ 35,224 $ — $ ( 3,494 ) $ 31,730 U.S. agency 665 — ( 9 ) 656 Obligations of states and political subdivisions 27,709 31 ( 2,041 ) 25,699 Mortgage backed - residential 111,038 128 ( 14,887 ) 96,279 Collateralized mortgage obligations 183,718 3 ( 19,374 ) 164,347 Mortgage backed - commercial 147,374 357 ( 12,904 ) 134,827 Other debt 15,122 416 — 15,538 Total available-for-sale $ 520,850 $ 935 $ ( 52,709 ) $ 469,076 Held-to-maturity: Obligations of states and political subdivisions $ 25,713 $ — $ ( 4,899 ) $ 20,814 Mortgage backed - residential 6,373 1 ( 576 ) 5,798 Collateralized mortgage obligations 3,156 — ( 205 ) 2,951 Total held-to-maturity $ 35,242 $ 1 $ ( 5,680 ) $ 29,563 There was no allowance for credit losses related to our investment securities as of September 30, 2025 and December 31, 2024. As of September 30, 2025 and December 31, 2024, there were no holdings of securities of any one issuer, other than the U.S. Government and its agencies, in an amount greater than 10% of stockholders’ equity. 14 Fair value and unrealized losses on debt securities by type and length of time in a continuous unrealized loss position without an allowance for credit losses were as follows: Less than 12 months 12 months or longer Total Estimated Fair Value Unrealized Losses Estimated Fair Value Unrealized Losses Estimated Fair Value Unrealized Losses Number of Securities September 30, 2025 Available-for-sale: U.S. treasury $ — $ — $ 33,051 $ ( 2,128 ) $ 33,051 $ ( 2,128 ) 4 U.S. agency — — 536 ( 6 ) 536 ( 6 ) 4 Obligations of states and political subdivisions — — 23,559 ( 1,668 ) 23,559 ( 1,668 ) 17 Mortgage backed - residential 1,523 ( 6 ) 81,549 ( 11,155 ) 83,072 ( 11,161 ) 82 Collateralized mortgage obligations 9,692 ( 18 ) 143,403 ( 14,914 ) 153,095 ( 14,932 ) 59 Mortgage backed - commercial — — 110,677 ( 8,834 ) 110,677 ( 8,834 ) 21 Total available-for-sale $ 11,215 $ ( 24 ) $ 392,775 $ ( 38,705 ) $ 403,990 $ ( 38,729 ) 187 Held-to-maturity: Obligations of states and political subdivisions $ — $ — $ 21,455 $ ( 4,062 ) $ 21,455 $ ( 4,062 ) 8 Mortgage backed - residential — — 5,337 ( 362 ) 5,337 ( 362 ) 10 Collateralized mortgage obligations — — 2,520 ( 120 ) 2,520 ( 120 ) 5 Total held-to-maturity $ — $ — $ 29,312 $ ( 4,544 ) $ 29,312 $ ( 4,544 ) 23 15 Less than 12 months 12 months or longer Total Estimated Fair Value Unrealized Losses Estimated Fair Value Unrealized Losses Estimated Fair Value Unrealized Losses Number of Securities December 31, 2024 Available-for-sale: U.S. treasury $ — $ — $ 31,730 $ ( 3,494 ) $ 31,730 $ ( 3,494 ) 4 U.S. agency — — 656 ( 9 ) 656 ( 9 ) 7 Obligations of states and political subdivisions — — 22,253 ( 2,041 ) 22,253 ( 2,041 ) 17 Mortgage backed - residential 3,788 ( 49 ) 86,626 ( 14,838 ) 90,414 ( 14,887 ) 81 Collateralized mortgage obligations 10,785 ( 12 ) 146,740 ( 19,362 ) 157,525 ( 19,374 ) 62 Mortgage backed - commercial 1,705 ( 51 ) 112,801 ( 12,853 ) 114,506 ( 12,904 ) 23 Total available-for-sale $ 16,278 $ ( 112 ) $ 400,806 $ ( 52,597 ) $ 417,084 $ ( 52,709 ) 194 Held-to-maturity: Obligations of states and political subdivisions $ 329 $ — $ 20,485 $ ( 4,899 ) $ 20,814 $ ( 4,899 ) 9 Mortgage backed - residential — — 5,703 ( 576 ) 5,703 ( 576 ) 10 Collateralized mortgage obligations — — 2,951 ( 205 ) 2,951 ( 205 ) 5 Total held-to-maturity $ 329 $ — $ 29,139 $ ( 5,680 ) $ 29,468 $ ( 5,680 ) 24 16 We do not consider the unrealized losses to be credit-related, as these unrealized losses primarily relate to changes in interest rates and market spreads subsequent to purchase. We do not have plans to sell any of the available-for-sale debt securities with unrealized losses as of September 30, 2025, and we believe it is more likely than not that we would not be required to sell such available-for-sale debt securities before recovery of their amortized cost. We continue to monitor unrealized loss positions for potential credit impairments. During the three and nine months ended September 30, 2025 and 2024, there were no credit impairments related to our investment securities. The amortized cost and fair value of our debt securities by contractual maturity as of September 30, 2025 are summarized in the following table. Maturities are based on the final contractual payment dates and do not reflect the impact of prepayments or earlier redemptions that may occur. Amortized Cost Estimated Fair Value Available-for-sale: Due within 1 year $ 304 $ 303 Due after 1 year through 5 years 112,450 109,468 Due after 5 years through 10 years 123,559 116,312 Due after 10 years 276,496 250,031 Total available-for-sale $ 512,809 $ 476,114 Held-to-maturity: Due within 1 year $ 659 $ 655 Due after 1 year through 5 years 426 427 Due after 5 years through 10 years 3,513 3,328 Due after 10 years 29,649 25,295 Total held-to-maturity $ 34,247 $ 29,705 Securities with a carrying value of $ 373,325 and $ 460,387 were pledged to secure public deposits, securities sold under agreements to repurchase, and borrowed funds at September 30, 2025 and December 31, 2024, respectively. Available-for-sale debt securities with a carrying value of $ 38,937 and $ 37,749 were designated in fair value hedges at September 30, 2025 and December 31, 2024, respectively. See Note 5 - Derivative Financial Instruments for further information. There were no proceeds from sales and calls of securities for the three months ended September 30, 2025. There were $ 946 proceeds from sales and calls of securities for the nine months ended September 30, 2025. There were no proceeds from sales and calls of securities for the three and nine months ended September 30, 2024. 17 NOTE 3 - Loans Loans held-for-investment by portfolio type 1 consist of the following as of: September 30, 2025 December 31, 2024 Commercial and industrial $ 2,945,697 $ 2,627,591 Commercial real estate: Non-owner occupied 725,425 752,628 Owner occupied 668,172 700,867 Construction and land 343,803 362,677 Multifamily 183,504 94,355 Total commercial real estate 1,920,904 1,910,527 Residential real estate 1,209,742 1,180,610 Public finance 516,247 554,784 Consumer 38,931 41,144 Other 50,108 61,701 Total loans $ 6,681,629 $ 6,376,357 Allowance for credit losses ( 84,040 ) ( 88,221 ) Loans, net of allowance for credit losses $ 6,597,589 $ 6,288,136 As of September 30, 2025 and December 31, 2024, we had net deferred fees, costs, premiums and discounts of $ 13,161 and $ 10,222 , respectively, on our loan portfolio. Accrued interest receivable on loans totaled $ 32,055 and $ 29,971 at September 30, 2025 and December 31, 2024, respectively, and is included in accrued interest receivable in the accompanying consolidated balance sheets. The following table presents the activity in the allowance for credit losses by portfolio type for the three months ended September 30,: Commercial and Industrial Commercial Real Estate Residential Real Estate Public Finance Consumer Other Total 2025 Allowance for credit losses: Balance, beginning of period $ 37,802 $ 25,481 $ 15,249 $ 3,203 $ 804 $ 454 $ 82,993 Provision (benefit) for credit losses 9,409 1,153 ( 444 ) ( 79 ) ( 99 ) 160 10,100 Loans charged off ( 9,025 ) — ( 66 ) ( 242 ) ( 97 ) — ( 9,430 ) Recoveries 260 11 51 — 55 — 377 Balance, end of period $ 38,446 $ 26,645 $ 14,790 $ 2,882 $ 663 $ 614 $ 84,040 2024 Allowance for credit losses: Balance, beginning of period $ 26,052 $ 29,919 $ 15,982 $ 5,921 $ 666 $ 420 $ 78,960 Provision (benefit) for credit losses 9,014 ( 552 ) ( 1,369 ) ( 1,663 ) 117 53 5,600 Loans charged off ( 1,116 ) ( 474 ) — — ( 52 ) — ( 1,642 ) Recoveries 206 4 — — 31 — 241 Balance, end of period $ 34,156 $ 28,897 $ 14,613 $ 4,258 $ 762 $ 473 $ 83,159 1 Loans to nondepository financial institutions are included within commercial and industrial. Prior period amounts have been reclassified to conform to the current presentation. 18 The following table presents the activity in the allowance for credit losses by portfolio type for the nine months ended September 30,: Commercial and Industrial Commercial Real Estate Residential Real Estate Public Finance Consumer Other Total 2025 Allowance for credit losses: Balance, beginning of period $ 38,489 $ 28,323 $ 15,450 $ 4,750 $ 750 $ 459 $ 88,221 Provision (benefit) for credit losses 20,333 ( 1,689 ) ( 668 ) 54 122 898 19,050 Loans charged-off ( 20,757 ) — ( 66 ) ( 1,922 ) ( 351 ) ( 743 ) ( 23,839 ) Recoveries 381 11 74 — 142 — 608 Balance, end of period $ 38,446 $ 26,645 $ 14,790 $ 2,882 $ 663 $ 614 $ 84,040 2024 Allowance for credit losses: Balance, beginning of period $ 29,830 $ 27,546 $ 16,345 $ 5,337 $ 717 $ 623 $ 80,398 Provision (benefit) for credit losses 24,402 1,816 ( 1,702 ) ( 1,079 ) 313 ( 150 ) 23,600 Loans charged-off ( 20,743 ) ( 474 ) ( 38 ) — ( 353 ) — ( 21,608 ) Recoveries 667 9 8 — 85 — 769 Balance, end of period $ 34,156 $ 28,897 $ 14,613 $ 4,258 $ 762 $ 473 $ 83,159 We determine the allowance for credit losses estimate on at least a quarterly basis. As of September 30, 2025 and December 31, 2024, we had an allowance for credit losses on unfunded commitments of $ 1,009 and $ 1,659 , respectively. For the three months ended September 30, 2025 we did not record a provision for credit losses on unfunded commitments. For the three months ended September 30, 2024 we recorded a benefit for credit losses on unfunded commitments of $ 600 . For the nine months ended September 30, 2025 and 2024 we recorded a benefit for credit losses on unfunded commitments of $ 650 and $ 900 , respectively. 19 The following table presents our loan portfolio aging analysis as of: Loans Not Past Due Loans 30-59 Days Past Due Loans 60-89 Days Past Due Loans Greater than 90 Days Past Due, Still Accruing Nonaccrual Total September 30, 2025 Commercial and industrial $ 2,892,612 $ 8,850 $ — $ — $ 44,235 $ 2,945,697 Commercial real estate: Non-owner occupied 720,987 222 — — 4,216 725,425 Owner occupied 665,222 795 — — 2,155 668,172 Construction and land 343,803 — — — — 343,803 Multifamily 181,899 — — — 1,605 183,504 Total commercial real estate 1,911,911 1,017 — — 7,976 1,920,904 Residential real estate 1,188,409 1,238 2,743 13 17,339 1,209,742 Public Finance 516,247 — — — — 516,247 Consumer 38,850 3 — — 78 38,931 Other 50,108 — — — — 50,108 Total loans $ 6,598,137 $ 11,108 $ 2,743 $ 13 $ 69,628 $ 6,681,629 December 31, 2024 Commercial and industrial $ 2,592,274 $ 6,331 $ 672 $ — $ 28,314 $ 2,627,591 Commercial real estate: Non-owner occupied 748,004 274 — — 4,350 752,628 Owner occupied 695,733 1,856 — — 3,278 700,867 Construction and land 362,677 — — — — 362,677 Multifamily 92,681 — — — 1,674 94,355 Total commercial real estate 1,899,095 2,130 — — 9,302 1,910,527 Residential real estate 1,140,193 17,065 3,117 15 20,220 1,180,610 Public Finance 547,558 — — — 7,226 554,784 Consumer 41,044 36 — — 64 41,144 Other 50,248 7,156 388 1,518 2,391 61,701 Total loans $ 6,270,412 $ 32,718 $ 4,177 $ 1,533 $ 67,517 $ 6,376,357 Interest income recorded on nonperforming loans was not material for the three and nine months ended September 30, 2025 and 2024. Credit risk monitoring and management is a continuous process to manage the quality of the loan portfolio. We segment loans into risk categories based on relevant borrower risk profile information, including the ability of borrowers to service their debt based on current financial information, historical payment experience, credit documentation, public information and current economic trends among other factors. The risk rating system is used as a tool to analyze and monitor movements in loan portfolio quality. 20 Risk ratings meeting an internally specified exposure threshold are updated annually, or more frequently upon the occurrence of a circumstance that affects the credit risk of the loan. We use the following definitions for risk ratings: Pass – Loans classified as Pass have a well-defined primary source of repayment, an acceptable financial position profile (including capitalization), profitability and minimal operating risk. Pass/Watch – Pass/Watch loans require close attention by bank management and enhanced monitoring due to quantitative or qualitative concerns linked to adverse trends or near-term uncertainty. A covenant default or other type of requirement shortfall may have arisen subsequent to a loan's booking or borrower now shows signs of weakness in the overall base of confirmable financial resources available to repay the loan. However, overall financial capacity & performance are considered sufficient to support an expectation of continued payment performance and / or mitigating factors exist that are expected to limit the risk of near term default and loss. Special Mention – Special Mention loans have identified potential weaknesses that are of sufficient materiality to require management’s (persistent) close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the loan or in the bank's credit position under normal business operations. Special Mention loans contain greater than acceptable risk to warrant increases in credit exposure and are thus considered “criticized”, non-pass rated credits. They may contain weaknesses (that have arisen due to deteriorating conditions since origination) and / or underwriting exceptions that are not currently offset by mitigating factors. However, these weaknesses, while sufficient to constitute significantly elevated credit risk, are not sufficient to support a conclusion that the liquidation of the debt is in significant jeopardy. Substandard - Accruing – Substandard - Accruing loans are inadequately protected by the current sound net worth and paying capacity of the obligor(s). Loans classified as Substandard - Accruing possess one or more well-defined weaknesses that are expected to jeopardize their liquidation but the weaknesses have not progressed to a point where recent late payments on the loan have become more than 90 days past due. These loans are characterized by the distinct possibility that the bank may sustain up to a moderate but not significant level of loss if such weaknesses are not corrected. Losses for Substandard - Accruing loans are moderated by the lower likelihood of ultimate default and the existence of relatively favorable secondary repayment protection. These loans are considered “nonperforming”. Substandard - Nonaccrual – Substandard - Nonaccrual loans are inadequately protected by the current sound net worth and paying capacity of the obligor or the collateral pledged, if any. Loans classified as Substandard - Nonaccrual possess material, well-defined weaknesses that are expected to jeopardize their liquidation and have progressed to a point where consistently late payments on the loan have become more than 90 or more days past due. These loans are characterized by the distinct possibility that the bank may sustain a material level of loss if such weaknesses are not corrected. Losses for Substandard - Nonaccrual loans are prone to being elevated based on the strong likelihood of the loan remaining in payment default and an undesirable level of secondary repayment protection. These loans are considered “nonperforming”. Doubtful – Loans classified as Doubtful possess all of the weaknesses inherent in loans classified as Substandard - Nonaccrual with the added characteristic that the weaknesses make collection or liquidation in full highly questionable or improbable based on currently existing facts, conditions and values. A high probability of substantial loss or possible total loss exists. Loans rated as doubtful are not rated as loss because certain events may occur that could salvage at least a portion of the debt. These events include injections of capital, additions of pledged collateral or possible mezzanine debt refinancing options. However, without the occurrence of such events, total loss may be possible. No definite repayment schedule exists for these loans. The Doubtful grade is a temporary grade. If a near term recovery of a portion of the loan balance is indeterminable or unlikely to occur, the remaining balance of the loan should be written off and possible future recoveries may partially offset the full write-off of the loan. These loans are considered “nonperforming”. Loss – Loans classified as Loss are defaulted loans with limited or immaterial recovery prospects. No loan that has not yet defaulted should be classified at this grade level. This rating level tends to be very short lived as the full balance of the loan tends to be fully written off nearly immediately after a change to this rating level. These loans are considered “nonperforming”. 21 The following table presents the amortized cost by segment of loans by risk category and origination date as of September 30, 2025 and gross charge-offs by origination date for the nine months ended September 30, 2025: 2025 2024 2023 2022 2021 Prior Revolving Loans Converted to Term Revolving Total Commercial and industrial: Pass $ 648,310 $ 342,933 $ 201,418 $ 173,090 $ 140,914 $ 89,730 $ 48,247 $ 1,035,257 $ 2,679,899 Pass/Watch 1,190 17,436 2,093 33,248 1,030 2,014 200 9,020 66,231 Special Mention — 14,693 16,837 23,175 3,409 336 16,951 11,796 87,197 Substandard - Accruing 1,560 1,133 20,434 9,628 13,993 4,119 1,303 15,965 68,135 Substandard - Nonaccrual — — 822 11,457 1,545 3,644 16,777 245 34,490 Doubtful — — — 9,168 — 174 — 403 9,745 Total commercial and industrial $ 651,060 $ 376,195 $ 241,604 $ 259,766 $ 160,891 $ 100,017 $ 83,478 $ 1,072,686 $ 2,945,697 Gross charge-offs $ — $ — $ 1,765 $ 13,812 $ 83 $ 1,219 $ 2,688 $ 1,190 $ 20,757 Commercial real estate: Non-owner occupied: Pass $ 123,715 $ 37,861 $ 58,799 $ 90,738 $ 106,289 $ 229,190 $ 7,637 $ 19,284 $ 673,513 Pass/Watch — — — 1,248 26,892 7,095 — 12,239 47,474 Substandard - Accruing — — — — — 222 — — 222 Substandard - Nonaccrual — — — — — 4,216 — — 4,216 Total non-owner occupied $ 123,715 $ 37,861 $ 58,799 $ 91,986 $ 133,181 $ 240,723 $ 7,637 $ 31,523 $ 725,425 Gross charge-offs $ — $ — $ — $ — $ — $ — $ — $ — $ — Owner occupied: Pass $ 36,516 $ 47,701 $ 70,632 $ 30,738 $ 81,209 $ 231,522 $ 34,206 $ 13,437 $ 545,961 Pass/Watch — 54,658 2,598 11,339 5,336 16,365 — — 90,296 Special Mention — — 1,891 1,752 — 2,652 — — 6,295 Substandard - Accruing — — 9,591 854 396 12,624 — — 23,465 Substandard - Nonaccrual — — — — 1,104 1,051 — — 2,155 Total owner occupied $ 36,516 $ 102,359 $ 84,712 $ 44,683 $ 88,045 $ 264,214 $ 34,206 $ 13,437 $ 668,172 Gross charge-offs $ — $ — $ — $ — $ — $ — $ — $ — $ — Construction & land: Pass $ 12,859 $ 45,605 $ 81,876 $ 77,048 $ 6,560 $ 8,053 $ 15,102 $ 14,234 $ 261,337 Pass/Watch 1,146 1,056 4,537 46,108 — — — — 52,847 Special Mention — 1,849 2,904 24,866 — — — — 29,619 Total construction & land $ 14,005 $ 48,510 $ 89,317 $ 148,022 $ 6,560 $ 8,053 $ 15,102 $ 14,234 $ 343,803 Gross charge-offs $ — $ — $ — $ — $ — $ — $ — $ — $ — Multifamily: Pass $ 35,215 $ 7,613 $ 1,317 $ 86,004 $ 29,811 $ 8,700 $ 10,483 $ — $ 179,143 Pass/Watch — — — — — 885 — — 885 Special Mention — — — — 1,871 — — — 1,871 Substandard - Nonaccrual — — — 1,605 — — — — 1,605 Total multifamily $ 35,215 $ 7,613 $ 1,317 $ 87,609 $ 31,682 $ 9,585 $ 10,483 $ — $ 183,504 Gross charge-offs $ — $ — $ — $ — $ — $ — $ — $ — $ — 22 2025 2024 2023 2022 2021 Prior Revolving Loans Converted to Term Revolving Total Total commercial real estate: Pass $ 208,305 $ 138,780 $ 212,624 $ 284,528 $ 223,869 $ 477,465 $ 67,428 $ 46,955 $ 1,659,954 Pass/Watch 1,146 55,714 7,135 58,695 32,228 24,345 — 12,239 191,502 Special Mention — 1,849 4,795 26,618 1,871 2,652 — — 37,785 Substandard - Accruing — — 9,591 854 396 12,846 — — 23,687 Substandard - Nonaccrual — — — 1,605 1,104 5,267 — — 7,976 Total commercial real estate: $ 209,451 $ 196,343 $ 234,145 $ 372,300 $ 259,468 $ 522,575 $ 67,428 $ 59,194 $ 1,920,904 Gross charge-offs $ — $ — $ — $ — $ — $ — $ — $ — $ — Residential real estate: Pass $ 115,751 $ 134,345 $ 109,324 $ 513,534 $ 102,240 $ 162,355 $ 2,938 $ 15,043 $ 1,155,530 Pass/Watch 5,066 2,773 3,256 7,378 5,918 7,149 57 — 31,597 Special Mention 2,176 431 1,493 629 — 428 — — 5,157 Substandard - Accruing — — — — — 119 — — 119 Substandard - Nonaccrual — 569 — 9,322 359 6,940 123 26 17,339 Total residential real estate $ 122,993 $ 138,118 $ 114,073 $ 530,863 $ 108,517 $ 176,991 $ 3,118 $ 15,069 $ 1,209,742 Gross charge-offs $ — $ — $ — $ — $ — $ 66 $ — $ — $ 66 Public Finance: Pass $ 6,727 $ 30,477 $ 6,068 $ — $ 42,083 $ 430,892 $ — $ — $ 516,247 Total public finance $ 6,727 $ 30,477 $ 6,068 $ — $ 42,083 $ 430,892 $ — $ — $ 516,247 Gross charge-offs $ — $ — $ — $ — $ — $ 1,922 $ — $ — $ 1,922 Consumer: Pass $ 5,367 $ 2,526 $ 966 $ 874 $ 3,103 $ 10,019 $ 60 $ 15,222 $ 38,137 Pass/Watch 28 — 3 6 104 522 2 51 716 Substandard - Nonaccrual — 8 — — 2 68 — — 78 Total consumer $ 5,395 $ 2,534 $ 969 $ 880 $ 3,209 $ 10,609 $ 62 $ 15,273 $ 38,931 Gross charge-offs $ — $ — $ 16 $ 58 $ 42 $ 109 $ 3 $ 123 $ 351 Other: Pass $ 8,617 $ 2,919 $ — $ 7,322 $ 9,433 $ 6,546 $ 8 $ 14,462 $ 49,307 Pass/Watch — — — — 801 — — — 801 Total other $ 8,617 $ 2,919 $ — $ 7,322 $ 10,234 $ 6,546 $ 8 $ 14,462 $ 50,108 Gross charge-offs $ — $ — $ — $ — $ — $ 743 $ — $ — $ 743 Total loans: Pass $ 993,077 $ 651,980 $ 530,400 $ 979,348 $ 521,642 $ 1,177,007 $ 118,681 $ 1,126,939 $ 6,099,074 Pass/Watch 7,430 75,923 12,487 99,327 40,081 34,030 259 21,310 290,847 Special Mention 2,176 16,973 23,125 50,422 5,280 3,416 16,951 11,796 130,139 Substandard - Accruing 1,560 1,133 30,025 10,482 14,389 17,084 1,303 15,965 91,941 Substandard - Nonaccrual — 577 822 22,384 3,010 15,919 16,900 271 59,883 Doubtful — — — 9,168 — 174 — 403 9,745 Total loans $ 1,004,243 $ 746,586 $ 596,859 $ 1,171,131 $ 584,402 $ 1,247,630 $ 154,094 $ 1,176,684 $ 6,681,629 Gross charge-offs $ — $ — $ 1,781 $ 13,870 $ 125 $ 4,059 $ 2,691 $ 1,313 $ 23,839 23 The following table presents the amortized cost by segment of loans by risk category and origination date as of December 31, 2024 and gross charge-offs by origination date for the year ended December 31, 2024: 2024 2023 2022 2021 2020 Prior Revolving Loans Converted to Term Revolving Total Commercial and industrial: Pass $ 515,836 $ 269,395 $ 257,423 $ 221,972 $ 67,636 $ 48,713 $ 76,821 $ 912,809 $ 2,370,605 Pass/Watch 1,469 17,131 29,927 19,200 4,373 2,343 322 19,994 94,759 Special Mention 277 13,796 22,630 3,740 345 664 1,901 3,772 47,125 Substandard - Accruing 928 6,359 27,244 22,543 2,862 3,236 6,339 17,277 86,788 Substandard - Nonaccrual — 2,235 12,689 4,100 2,895 2,459 1,584 1,707 27,669 Doubtful — — — — 415 — 230 — 645 Total commercial and industrial $ 518,510 $ 308,916 $ 349,913 $ 271,555 $ 78,526 $ 57,415 $ 87,197 $ 955,559 $ 2,627,591 Gross charge-offs $ — $ — $ — $ 19,720 $ 269 $ 2 $ 630 $ 122 $ 20,743 Commercial real estate: Non-owner occupied: Pass $ 40,289 $ 62,077 $ 101,213 $ 125,983 $ 137,151 $ 190,617 $ 7,919 $ 20,030 $ 685,279 Pass/Watch — — 1,305 23,343 851 6,016 — 17,386 48,901 Special Mention — — — 5,953 — — — — 5,953 Substandard - Accruing — 2,711 — — 542 3,399 1,493 — 8,145 Substandard - Nonaccrual — — — — — 4,350 — — 4,350 Total non-owner occupied $ 40,289 $ 64,788 $ 102,518 $ 155,279 $ 138,544 $ 204,382 $ 9,412 $ 37,416 $ 752,628 Gross charge-offs $ — $ — $ — $ — $ 270 $ 11 $ — $ — $ 281 Owner occupied: Pass $ 102,994 $ 78,583 $ 63,861 $ 88,399 $ 90,033 $ 177,733 $ 21,049 $ 4,386 $ 627,038 Pass/Watch — 13,933 875 5,515 19,266 3,773 — — 43,362 Special Mention — — 2,268 407 1,870 6,836 — — 11,381 Substandard - Accruing — 577 446 — 2,516 12,269 — — 15,808 Substandard - Nonaccrual — — — 1,167 — 2,111 — — 3,278 Total owner occupied $ 102,994 $ 93,093 $ 67,450 $ 95,488 $ 113,685 $ 202,722 $ 21,049 $ 4,386 $ 700,867 Gross charge-offs $ — $ — $ — $ — $ — $ 194 $ — $ — $ 194 Construction & land: Pass $ 15,602 $ 54,903 $ 199,051 $ 6,749 $ 3,745 $ 4,414 $ 3,436 $ 29,998 $ 317,898 Pass/Watch — — 3,351 — — 15 — — 3,366 Special Mention — — 41,413 — — — — — 41,413 Total construction & land $ 15,602 $ 54,903 $ 243,815 $ 6,749 $ 3,745 $ 4,429 $ 3,436 $ 29,998 $ 362,677 Gross charge-offs $ — $ — $ — $ — $ — $ — $ — $ — $ — Multifamily: Pass $ 4,408 $ 1,338 $ 36,156 $ 32,878 $ 4,866 $ 7,502 $ 5,533 $ — $ 92,681 Substandard - Nonaccrual — — 1,674 — — — — — 1,674 Total multifamily $ 4,408 $ 1,338 $ 37,830 $ 32,878 $ 4,866 $ 7,502 $ 5,533 $ — $ 94,355 Gross charge-offs $ — $ — $ — $ — $ — $ — $ — $ — $ — 24 2024 2023 2022 2021 2020 Prior Revolving Loans Converted to Term Revolving Total Total commercial real estate: Pass $ 163,293 $ 196,901 $ 400,281 $ 254,009 $ 235,795 $ 380,266 $ 37,937 $ 54,414 $ 1,722,896 Pass/Watch — 13,933 5,531 28,858 20,117 9,804 — 17,386 95,629 Special Mention — — 43,681 6,360 1,870 6,836 — — 58,747 Substandard - Accruing — 3,288 446 — 3,058 15,668 1,493 — 23,953 Substandard - Nonaccrual — — 1,674 1,167 — 6,461 — — 9,302 Total commercial real estate: $ 163,293 $ 214,122 $ 451,613 $ 290,394 $ 260,840 $ 419,035 $ 39,430 $ 71,800 $ 1,910,527 Gross charge-offs $ — $ — $ — $ — $ 270 $ 205 $ — $ — $ 475 Residential real estate: Pass $ 141,409 $ 138,915 $ 549,022 $ 108,084 $ 35,720 $ 151,015 $ 2,405 $ 15,201 $ 1,141,771 Pass/Watch — 1,405 4,731 4,148 90 6,151 62 994 17,581 Special Mention — — 351 — — 601 — — 952 Substandard - Accruing — — — — — 86 — — 86 Substandard - Nonaccrual 210 — 10,667 727 2,244 6,284 59 29 20,220 Total residential real estate $ 141,619 $ 140,320 $ 564,771 $ 112,959 $ 38,054 $ 164,137 $ 2,526 $ 16,224 $ 1,180,610 Gross charge-offs $ — $ — $ — $ — $ — $ 38 $ — $ — $ 38 Public Finance: Pass $ 29,860 $ 19,986 $ — $ 42,558 $ 130,447 $ 322,066 $ — $ 2,641 $ 547,558 Substandard - Nonaccrual — — — — — 7,226 — — 7,226 Total public finance $ 29,860 $ 19,986 $ — $ 42,558 $ 130,447 $ 329,292 $ — $ 2,641 $ 554,784 Gross charge-offs $ — $ — $ — $ — $ — $ — $ — $ — $ — Consumer: Pass $ 3,949 $ 1,610 $ 1,333 $ 3,793 $ 7,463 $ 4,695 $ 60 $ 17,465 $ 40,368 Pass/Watch — 6 37 104 182 331 1 46 707 Special Mention — — — 1 — — — — 1 Substandard - Accruing — — — — — — 4 — 4 Substandard - Nonaccrual — — — 58 4 2 — — 64 Total consumer $ 3,949 $ 1,616 $ 1,370 $ 3,956 $ 7,649 $ 5,028 $ 65 $ 17,511 $ 41,144 Gross charge-offs $ 3 $ 10 $ 6 $ 3 $ 147 $ 46 $ 15 $ 208 $ 438 Other: Pass $ 1,564 $ 6,503 $ 6,663 $ 10,620 $ 148 $ 8,339 $ 129 $ 21,984 $ 55,950 Pass/Watch — — — 3,360 — — — — 3,360 Substandard - Nonaccrual — — — — — 2,391 — — 2,391 Total other $ 1,564 $ 6,503 $ 6,663 $ 13,980 $ 148 $ 10,730 $ 129 $ 21,984 $ 61,701 Gross charge-offs $ — $ — $ — $ — $ — $ — $ — $ — $ — Total loans: Pass $ 855,911 $ 633,310 $ 1,214,722 $ 641,036 $ 477,209 $ 915,094 $ 117,352 $ 1,024,514 $ 5,879,148 Pass/Watch 1,469 32,475 40,226 55,670 24,762 18,629 385 38,420 212,036 Special Mention 277 13,796 66,662 10,101 2,215 8,101 1,901 3,772 106,825 Substandard - Accruing 928 9,647 27,690 22,543 5,920 18,990 7,836 17,277 110,831 Substandard - Nonaccrual 210 2,235 25,030 6,052 5,143 24,823 1,643 1,736 66,872 Doubtful — — — — 415 — 230 — 645 Total loans $ 858,795 $ 691,463 $ 1,374,330 $ 735,402 $ 515,664 $ 985,637 $ 129,347 $ 1,085,719 $ 6,376,357 Gross charge-offs $ 3 $ 10 $ 6 $ 19,723 $ 686 $ 291 $ 645 $ 330 $ 21,694 25 The following table presents information about collateral dependent loans that were individually evaluated for purposes of determining the ACL as of: Collateral Dependent Loans With Allowance Collateral Dependent Loans With No Related Allowance Total Collateral Dependent Loans Amortized Cost Related Allowance Amortized Cost Amortized Cost Related Allowance September 30, 2025 Commercial & industrial $ 23,136 $ 8,058 $ 21,099 $ 44,235 $ 8,058 Commercial real estate: Non-owner occupied 3,617 102 599 4,216 102 Owner occupied — — 2,155 2,155 — Multifamily — — 1,605 1,605 — Total commercial real estate 3,617 102 4,359 7,976 102 Residential real estate 676 127 16,663 17,339 127 Public Finance — — — — — Consumer 73 76 5 78 76 Other — — — — — Total loans $ 27,502 $ 8,363 $ 42,126 $ 69,628 $ 8,363 December 31, 2024 Commercial & industrial $ 20,890 $ 8,460 $ 7,424 $ 28,314 $ 8,460 Commercial real estate: Non-owner occupied — — 4,350 4,350 — Owner occupied — — 3,278 3,278 — Multifamily — — 1,674 1,674 — Total commercial real estate — — 9,302 9,302 — Residential real estate 1,409 154 18,811 20,220 154 Public Finance 7,226 1,460 — 7,226 1,460 Consumer 64 64 — 64 64 Other 2,391 159 — 2,391 159 Total loans $ 31,980 $ 10,297 $ 35,537 $ 67,517 $ 10,297 The allowance related to collateral dependent loans reported in the tables above includes qualitative adjustments applied to the loan portfolio that consider possible changes in circumstances that could ultimately impact credit losses and might not be reflected in historical data or forecasted data incorporated in the quantitative models. Loan Modifications Made to Borrowers Experiencing Financial Difficulty: The allowance for credit losses incorporates an estimate of lifetime expected credit losses and is recorded on each asset upon origination. The starting point for the estimate of the allowance for credit losses is historical loss information, which includes losses from modifications of receivables to borrowers experiencing financial difficulty. We use a PD/LGD model to determine the allowance for credit losses. An assessment of whether a borrower is experiencing financial difficulty is made at the time of a modification. The loan modifications in the table below did not significantly impact our determination of the allowance for credit losses on loans during the three and nine months ended September 30, 2025. 26 Because the effect of most modifications made to borrowers experiencing financial difficulty is already included in the allowance for credit losses, a change to the allowance for credit losses is generally not recorded upon modification. Occasionally, we modify loans by providing principal forgiveness that is deemed to be uncollectible; therefore, that portion of the loan is written-off, resulting in a reduction of the amortized cost basis and a corresponding adjustment to the allowance for credit losses. Additionally, we may allow a loan to go interest only for a specified period of time. The following tables present loan modifications for borrowers experiencing financial difficulty, segregated by modification type, regardless of whether such modifications resulted in a new loan. For the three months ended September 30,: Principal Forgiveness Payment Delay Term Extension Interest Rate Reduction Combination Principal Forgiveness and Interest Rate Reduction % of Total Class of Loans 2025 Commercial and industrial $ — $ 5,931 $ 345 $ — $ — 0.2 % Total loans $ — $ 5,931 $ 345 $ — $ — 0.1 % 2024 Commercial and industrial $ 965 $ — $ 374 $ — $ 125 0.1 % Commercial real estate: Owner occupied $ — 3,748 — 2,082 $ — 0.8 % Total commercial real estate — 3,748 — 2,082 — 0.3 % Total loans $ 965 $ 3,748 $ 374 $ 2,082 $ 125 0.1 % For the nine months ended September 30,: Principal Forgiveness Payment Delay Term Extension Interest Rate Reduction Combination Principal Forgiveness and Interest Rate Reduction % of Total Class of Loans 2025 Commercial and industrial $ — $ 7,553 $ 1,167 $ — $ — 0.3 % Commercial real estate: Owner occupied — 1,048 — 1,175 — 0.3 % Total commercial real estate — 1,048 — 1,175 — 0.1 % Residential real estate — — 1,195 — — 0.1 % Total loans $ — $ 8,601 $ 2,362 $ 1,175 $ — 0.2 % 2024 Commercial and industrial $ 965 $ 9,674 $ 374 $ — $ 125 0.4 % Commercial real estate: Owner occupied — 3,748 — 2,748 — 0.9 % Total commercial real estate — 3,748 — 2,748 — 0.3 % Total loans $ 965 $ 13,422 $ 374 $ 2,748 $ 125 0.3 % 27 There were no commitments to lend additional funds to these borrowers at September 30, 2025. We closely monitor the performance of loan modifications made to borrowers experiencing financial difficulty to understand the effectiveness of the modification efforts. The following table depicts the performance of loan modifications made to borrowers experiencing financial difficulty that have been modified in the preceding 12 months: Loans Not Past Due Loans 30-59 Days Past Due Loans 60-89 Days Past Due Loans Greater than 90 Days Past Due, Still Accruing Nonaccrual Total September 30, 2025 Commercial and industrial $ 1,622 $ — $ — $ — $ 11,604 $ 13,226 Commercial real estate: Owner occupied 1,175 — — — 1,048 2,223 Residential real estate 931 — 264 — 241 1,436 Total loans $ 3,728 $ — $ 264 $ — $ 12,893 $ 16,885 September 30, 2024 Commercial and industrial $ 2,059 $ 182 $ — $ — $ 8,898 $ 11,139 Commercial real estate: Owner occupied 6,850 — 103 — 666 7,619 Total loans $ 8,909 $ 182 $ 103 $ — $ 9,564 $ 18,758 NOTE 4 - Mortgage Servicing Rights We have investments in mortgage servicing rights (“MSRs”) that result from the sale of loans to the secondary market for which we retain the servicing. We account for these MSRs at their fair value. The unpaid principal loan balance of our servicing portfolio is presented in the following table as of: September 30, 2025 December 31, 2024 Federal National Mortgage Association $ 2,680,469 $ 2,578,587 Federal Home Loan Mortgage Corporation 2,022,107 1,876,095 Government National Mortgage Association 1,377,010 1,259,513 Federal Home Loan Bank 104,531 98,582 Other 1,030 1,169 Total $ 6,185,147 $ 5,813,946 28 The activity of MSRs carried at fair value is as follows: For the three months ended September 30, For the nine months ended September 30, 2025 2024 2025 2024 Balance, beginning of period $ 84,736 $ 80,744 $ 84,258 $ 76,701 Additions: Servicing resulting from transfers of financial assets 3,775 3,488 10,548 8,785 Changes in fair value: Due to changes in valuation inputs or assumptions used in the valuation model ( 466 ) ( 2,584 ) ( 1,782 ) ( 490 ) Changes in fair value due to pay-offs, pay-downs, and runoff ( 2,350 ) ( 2,849 ) ( 7,329 ) ( 6,197 ) Balance, end of period $ 85,695 $ 78,799 $ 85,695 $ 78,799 The following represents the weighted-average key assumptions used to estimate the fair value of MSRs as of: September 30, 2025 December 31, 2024 September 30, 2024 Discount rate 9.84 % 10.09 % 10.07 % Total prepayment speeds 9.04 % 7.90 % 8.21 % Cost of servicing each loan $ 91 /per loan $ 92 /per loan $ 91 /per loan Total servicing and ancillary fees earned from the mortgage servicing portfolio is presented in the following table: For the three months ended September 30, For the nine months ended September 30, 2025 2024 2025 2024 Servicing fees $ 4,511 $ 4,083 $ 13,180 $ 11,908 Late and ancillary fees 215 238 691 672 Total $ 4,726 $ 4,321 $ 13,871 $ 12,580 NOTE 5 - Derivative Financial Instruments Banking Derivative Financial Instruments : We use fair value hedges to seek to manage our exposure to changes in the fair value of certain recognized assets attributable to changes in a benchmark interest rate, such as SOFR. The fair value hedges were determined to be effective during all periods presented and we expect the hedges to remain effective during their remaining terms. Derivatives not designated as hedges are not speculative and result from a service we provide to certain customers. We execute interest rate swaps with banking customers to facilitate their respective risk management strategies. Those interest rate swaps are simultaneously offset by derivatives that we execute with a third-party, such that we minimize our net risk exposure resulting from such transactions. As the interest rate derivatives associated with this program do not meet the strict hedge accounting requirements, changes in the fair value of both the customer derivatives and the offsetting derivatives are recognized directly in earnings. Derivative instruments are measured at fair value and recorded as a component of prepaid expenses and other assets and accrued expenses and other liabilities. 29 The components of our banking derivative financial instruments consisted of the following as of: Number of Transactions Expiration Dates Outstanding Notional Estimated Fair Value September 30, 2025 Derivative financial instruments designated as hedging instruments: Assets: Interest Rate Products 32 2028 - 2036 $ 152,037 $ 7,661 Derivative financial instruments not designated as hedging instruments: Assets: Interest Rate Products 65 2025 - 2037 $ 600,793 $ 14,451 Other 5 2028 $ 16,148 $ 9 Liabilities: Interest Rate Products 65 2025 - 2037 $ 600,793 $ 14,450 Other 6 2027 - 2029 $ 52,887 $ 52 December 31, 2024 Derivative financial instruments designated as hedging instruments: Assets: Interest Rate Products 36 2029 - 2034 $ 175,967 $ 13,452 Derivative financial instruments not designated as hedging instruments: Assets: Interest Rate Products 57 2025 - 2037 $ 502,080 $ 22,062 Other 1 2025 $ 7,759 $ — Liabilities: Interest Rate Products 57 2025 - 2037 $ 502,080 $ 21,830 Other 5 2027 - 2028 $ 38,756 $ 31 We recorded gains and losses on banking derivative assets and liabilities as follows: For the three months ended September 30, For the nine months ended September 30, 2025 2024 2025 2024 Recorded gain (loss) on banking derivative assets $ 120 $ ( 8,724 ) $ ( 1,527 ) $ 918 Recorded (loss) gain on banking derivative liabilities $ ( 103 ) $ 8,427 $ 1,329 $ ( 1,056 ) For the three months ended September 30, 2025 and 2024, our banking derivative financial instruments not designated as hedging instruments generated fee income of $ 285 and $ 121 , respectively. For the nine months ended September 30, 2025 and 2024 our banking derivative financial instruments not designated as hedging instruments generated fee income of $ 1,079 , and $ 595 , respectively. The carrying amount of hedged loans receivable as of September 30, 2025 and December 31, 2024 was $ 145,445 and $ 170,166 , respectively. The cumulative amount of fair value hedging adjustment included in the carrying amount of the hedged loans receivable as of September 30, 2025 and December 31, 2024 was $( 5,201 ) and $( 9,169 ), respectively. The fair value hedging adjustment included in other noninterest income for the three months ended September 30, 2025 and 2024 was $ 607 and $ 4,110 , respectively. The fair value hedging adjustment included in other noninterest income for the nine months ended September 30, 2025 and 2024 was $ 3,968 and $ 2,757 , respectively. 30 The carrying amount of hedged available-for-sale debt securities as of September 30, 2025 and December 31, 2024 was $ 38,937 and $ 37,749 , respectively. The cumulative amount of fair value hedging adjustment included in the amortized cost amount of the hedged available-for-sale debt securities as of September 30, 2025 and December 31, 2024 was $( 2,461 ), and $( 4,285 ), respectively. The fair value hedging adjustment included in interest income for the three months ended September 30, 2025 and 2024 was $ 212 and $ 1,970 , respectively. The fair value hedging adjustment included in interest income for the nine months ended September 30, 2025 and 2024 was $ 1,824 and $ 515 , respectively. Credit-risk-related Contingent Features : We have agreements with each of our derivative counterparties that contain a provision where if we either default or are capable of being declared in default on any of our indebtedness, then we could also be declared in default on our derivative obligations. We also have agreements with our derivative counterparties that contain a provision where if we fail to maintain our status as a well-capitalized institution, then our derivative counterparties have the right but not the obligation to terminate existing swaps. As of September 30, 2025 and December 31, 2024, the fair value of derivatives in a net liability position, which includes accrued interest but excludes any adjustment for nonperformance risk, related to these agreements was $ 14,916 and $ 22,391 , respectively. As of September 30, 2025 and December 31, 2024, we have minimum collateral posting thresholds with our derivative counterparties and have posted collateral of $ 5,890 , respectively. If we had breached any of these provisions at September 30, 2025, we could have been required to settle our obligations under the agreements at their termination value of $ 14,916 . Mortgage Banking Derivative Financial Instruments : The components of our mortgage banking derivative financial instruments consisted of the following as of: Expiration Dates Outstanding Notional Estimated Fair Value September 30, 2025 Derivative financial instruments Assets: Futures 2025 $ 88,300 $ 811 Interest rate lock commitments (IRLC) 2025 $ 129,967 $ 392 Liabilities: Forward MBS trades 2025 $ 153,000 $ ( 183 ) December 31, 2024 Derivative financial instruments Assets: Forward MBS trades 2025 $ 86,000 $ 464 Interest rate lock commitments (IRLC) 2025 $ 44,701 $ 110 Liabilities: Futures 2025 $ 44,900 $ 1,002 We recorded gains and losses on mortgage banking derivative assets and liabilities as follows: For the three months ended September 30, For the nine months ended September 30, 2025 2024 2025 2024 Recorded (loss) gain on mortgage banking derivative assets $ ( 1,713 ) $ 1,222 $ 2,095 $ 215 Recorded gain on mortgage banking derivative liabilities $ 2,741 $ 376 $ 12 $ 376 31 NOTE 6 - Deposits The composition of our deposits is as follows as of: September 30, 2025 December 31, 2024 Noninterest-bearing demand deposit accounts $ 1,674,497 $ 1,541,158 Interest-bearing deposit accounts: Interest-bearing demand accounts 811,617 685,865 Savings accounts and money market accounts 3,223,254 2,834,123 NOW accounts 42,559 45,539 Certificate of deposit accounts: Less than $100 708,427 781,109 $100 through $250 306,808 388,571 Greater than $250 338,253 395,895 Total interest-bearing deposit accounts 5,430,918 5,131,102 Total deposits $ 7,105,415 $ 6,672,260 The following table summarizes the interest expense incurred on our deposits: For the three months ended September 30, For the nine months ended September 30, 2025 2024 2025 2024 Interest-bearing deposit accounts: Interest-bearing demand accounts $ 6,488 $ 6,010 $ 18,380 $ 16,488 Savings accounts and money market accounts 19,105 12,792 49,520 34,676 NOW accounts 123 157 375 436 Certificate of deposit accounts 12,809 20,626 41,829 62,859 Total interest-bearing deposit accounts $ 38,525 $ 39,585 $ 110,104 $ 114,459 The remaining maturity on certificate of deposit accounts is as follows as of: September 30, 2025 Remainder of 2025 $ 951,560 2026 381,501 2027 10,271 2028 4,502 2029 2,757 2030 1,580 Thereafter 1,317 Total certificate of deposit accounts $ 1,353,488 32 NOTE 7 - Debt FHLB advances The following is a breakdown of our FHLB advances and other borrowings outstanding as of: September 30, 2025 December 31, 2024 Amount Weighted Average Rate Amount Weighted Average Rate Variable rate line-of-credit advance $ — N/A $ — N/A Fixed rate term advance — N/A 135,000 4.60 % $ — $ 135,000 Our FHLB advances are typically considered short-term borrowings with maturities less than one year and are used to manage liquidity as needed. Maturing advances are replaced by drawing on available cash, making additional borrowings or through increased customer deposits. The advances were collateralized by $ 2,688,133 and $ 2,733,150 of loans pledged to the FHLB as of September 30, 2025 and December 31, 2024, respectively. As of September 30, 2025 and December 31, 2024, the Bank had total borrowing capacity with the FHLB that is based on qualified collateral lending values of $ 1,443,697 and $ 1,669,888 , respectively. Our additional borrowing availability with the FHLB at September 30, 2025 was $ 1,372,059 . These borrowings can be in the form of additional term advances or a line-of-credit. FRB advances We also had a $ 2,216,726 line-of-credit with the FRB. The agreement bears interest at the Fed Funds target rate plus 0.50 % and is secured by $ 2,644,095 of investment securities and loans pledged to the FRB as collateral. No amounts were drawn on the line-of-credit as of September 30, 2025. Other borrowings We have lines-of-credit with certain other financial institutions totaling $ 160,000 as of September 30, 2025. No amounts were drawn on these lines-of-credit at September 30, 2025. Subordinated Debt Subordinated Notes - 2020 In June and August 2020, we issued a total of $ 40,000 subordinated notes. The notes paid interest at a fixed rate of 6.00 % through June 30, 2025 and subsequently, until maturity, pay interest at a floating rate of three month term SOFR plus 5.89 % ( 10.18 % as of September 30, 2025), reset quarterly. Interest is payable quarterly on January 1, April 1, July 1 and October 1 of each year. Such notes are due on July 1, 2030, but were redeemed in full on October 1, 2025, see Note 16 - Subsequent Events . We incurred and capitalized $ 933 of costs related to the issuance of the subordinated notes. The amortization associated with the capitalized issuance costs is no t significant for the periods presented. Subordinated Note - 2022 On January 13, 2022, we issued a subordinated note totaling $ 25,000 . The note pays interest at a fixed rate of 3.375 % through January 15, 2027 and subsequently, until maturity, pays interest at a floating rate of three month term SOFR plus 2.03 %, reset quarterly. Interest is payable on July 15 and January 15 of each year. Such note is due on January 15, 2032. The note is not redeemable within the first five years of issuance, except under certain limited conditions. After five years , we may redeem the note at our discretion. We incurred and capitalized $ 534 of costs related to the issuance of the subordinated note. The amortization associated with the capitalized issuance costs is no t significant for the periods presented. 33 Trust preferred securities We have issued $ 9,279 in trust preferred securities through a special-purpose trust, New Mexico Banquest Capital Trust I (“NMBCT I”). In addition, we have issued $ 4,640 in trust preferred securities through a special purpose trust, New Mexico Banquest Capital Trust II (“NMBCT II”, and together with NMBCT I, collectively referred to as “NMBCT Trusts”). Interest is payable quarterly at a rate of three-month term SOFR plus 3.35 % ( 7.61 % and 8.94 % as of September 30, 2025 and 2024, respectively) for the trust preferred securities issued through NMBCT I and at a rate of three-month term SOFR plus 2.00 % ( 6.46 % and 7.36 % as of September 30, 2025 and 2024, respectively) for the trust preferred securities issued through NMBCT II. This subordinated debt of $ 13,919 was originally recorded at a discount of $ 4,293 . The accretion associated with the fair value discount is not significant for the periods presented. The Parent Company fully and unconditionally guarantees the obligations of the NMBCT Trusts on a subordinated basis. The trust preferred securities issued through the NMBCT Trusts are mandatorily redeemable upon the maturity of the debentures on December 19, 2032 and November 23, 2034, respectively, and are optionally redeemable, in part or in whole, by the Parent Company at each quarterly interest payment date. The Parent Company owns all of the outstanding common securities of the NMBCT Trusts, which have an aggregate liquidation valuation amount of $ 419 and is recorded in prepaid expenses and other assets on the consolidated balance sheet. The NMBCT Trusts are considered variable interest entities. Since the Parent Company is not the primary beneficiary of the NMBCT Trusts, the financial statements of the NMBCT Trusts are not included in our consolidated financial statements. NOTE 8 - Earnings Per Share Basic earnings per share, excluding dilution, is computed by dividing earnings available to common stockholders by the weighted average number of shares of common stock outstanding during the period. Diluted earnings per share reflects the potential dilution that could occur if securities or other contracts to issue common stock were exercised and converted into common stock or resulted in the issuance of common stock that could then share in our earnings. The following table sets forth the computation of basic and diluted earnings per share of common stock: For the three months ended September 30, For the nine months ended September 30, 2025 2024 2025 2024 Net income applicable to common stockholders $ 23,174 $ 22,422 $ 73,129 $ 59,278 Weighted Average Shares Weighted average common shares outstanding 27,801,255 27,612,538 27,769,320 27,355,098 Effect of dilutive securities Stock-based awards 490,523 600,271 504,814 621,117 Weighted average diluted common shares 28,291,778 28,212,809 28,274,134 27,976,215 Earnings per common share Basic earnings per common share $ 0.83 $ 0.81 $ 2.63 $ 2.17 Effect of dilutive securities Stock-based awards ( 0.01 ) ( 0.02 ) ( 0.04 ) ( 0.05 ) Diluted earnings per common share $ 0.82 $ 0.79 $ 2.59 $ 2.12 Long-term incentive plan grants for 20,249 shares of common stock were not considered in computing diluted earnings per share for the three months ended September 30, 2025, because they were antidilutive. Long-term incentive plan grants for 15,676 shares of common stock were not considered in computing diluted earnings per share for the nine months ended September 30, 2025, because they were antidilutive. There were no antidilutive shares for the three and nine months ended September 30, 2024. 34 NOTE 9 - Stockholders’ Equity As of September 30, 2025 and December 31, 2024, the Company has 10,000,000 shares of preferred stock authorized, $ 0.0001 par value, of which none were issued or outstanding, respectively. As of September 30, 2025 and December 31, 2024, the Company has 50,000,000 shares of common stock authorized, $ 0.0001 par value, of which 27,854,764 and 27,709,679 shares were issued and outstanding, respectively. Equity Incentive Plans : 2017 Equity Incentive Plan The 2017 Equity Incentive Plan (the “2017 Plan”) provides for the grant of stock options, stock appreciation rights, restricted stock and other stock awards to its employees, directors and consultants for up to 1,977,292 shares of FirstSun common stock in the aggregate. Option awards are generally granted with an exercise price of not less than the fair value of a share of the Company’s common stock at the date of grant, they vest 25 % on the first, second, third and fourth anniversaries following the date of grant and have 10 year terms. The fair value of each stock option award is estimated on the date of grant utilizing the Black-Scholes option pricing model. Expected volatility is determined based on the median historical volatility of 25 to 30 comparable companies that were publicly traded for a period commensurate with the expected term of the options. The expected term of the options is estimated to be the average of the vesting term and time to expiration. The risk-free rate for the expected term of the stock options is based on the U.S. Treasury yield curve in effect at the date of grant. The following table presents stock options outstanding as of and for the nine months ended September 30, 2025: Shares Weighted-Average Exercise Price, per Share Weighted-Average Remaining Term (years) Outstanding, beginning of period 882,570 $ 20.39 Exercised ( 174,720 ) 20.90 Outstanding, vested, and exercisable, end of period 707,850 $ 20.27 2.45 At September 30, 2025, the outstanding options were fully vested. At September 30, 2025 and 2024, the intrinsic value of the stock options was $ 13,045 and $ 21,326 , respectively. 2021 Equity Incentive Plan The FirstSun Capital Bancorp 2021 Equity Incentive Plan (the “2021 Plan”) provides for the grant of stock options, stock appreciation rights, restricted stock and other stock awards to its employees, directors and consultants for up to 2,476,571 shares of FirstSun common stock in the aggregate. Additionally, we established the FirstSun Capital Bancorp Long-Term Incentive Plan (“LTIP”), which became effective April 1, 2022. The LTIP is intended to qualify as a “top-hat” plan under ERISA that is unfunded and provides benefits only to a select group of management or highly compensated employees of FirstSun or the Bank. 35 The following table presents non-vested restricted stock outstanding with only a service condition as of and for the nine months ended September 30, 2025: Shares Weighted-Average Issuance Price, per Share Weighted-Average Remaining Term (years) Outstanding, beginning of period 11,739 $ 35.75 Issued 122,829 36.27 Vested, restriction released ( 20,905 ) 37.76 Forfeited ( 3,252 ) 35.76 Outstanding, end of period 110,411 $ 35.95 2.08 At September 30, 2025, there was $ 3,296 of total unrecognized compensation cost related to the non-vested restricted stock granted with only a service condition. During 2025 we granted 71,516 shares of restricted stock with a market condition and service condition under the LTIP that, subject to the achievement of service and market conditions, will fully vest in March 2028. At September 30, 2025, there was $ 2,162 of total unrecognized compensation cost related to the non-vested restricted stock granted. In April 2024, we granted performance-based shares of restricted stock under the LTIP that, subject to the achievement of performance conditions, will fully vest in March 2027. At September 30, 2025, based upon the probability that the performance conditions will be achieved, we determined that 84,150 shares will be issued. At September 30, 2025, there was $ 1,494 of total unrecognized compensation cost related to the non-vested restricted stock granted on these probable future issuances. In May 2023, we granted performance-based shares of restricted stock under the LTIP that, subject to the achievement of performance conditions, will fully vest in April 2026. At September 30, 2025, based upon the probability that the performance conditions will be achieved, we determined that 77,873 shares will be issued. At September 30, 2025, there was $ 363 of total unrecognized compensation cost related to the non-vested restricted stock granted on these probable future issuances. For the three months ended September 30, 2025, and 2024, we recorded total compensation cost from the 2017 and 2021 Plans of $ 1,243 and $ 549 , respectively. For the nine months ended September 30, 2025, and 2024, we recorded total compensation cost from the 2017 and 2021 Plans of $ 2,935 and $ 1,813 , respectively. Acquired Equity Incentive Plans In conjunction with the Pioneer Bancshares, Inc. merger, we assumed certain options that had been granted under Pioneer’s option plans. All assumed options were fully vested and exercisable. No further options will be granted under the Pioneer plans. The following table presents stock options outstanding as of and for the nine months ended September 30, 2025: Shares Weighted-Average Exercise Price, per Share Weighted-Average Remaining Term (years) Outstanding, beginning of year 74,919 $ 22.76 Exercised ( 18,794 ) 22.59 Outstanding, vested, and exercisable, end of period 56,125 $ 22.81 1.59 At September 30, 2025 and 2024, the intrinsic value of the stock options was $ 897 and $ 1,243 , respectively. 36 NOTE 10 - Income Taxes The provision for income taxes in interim periods requires us to make an estimate of the effective tax rate expected to be applicable for the full year, adjusted for any discrete items for the applicable period. This estimated effective tax rate is then applied to interim consolidated pre-tax operating income to determine the interim provision for income taxes. The provision for income tax is summarized as follows: For the three months ended September 30, For the nine months ended September 30, 2025 2024 2025 2024 Provision for income taxes $ 5,111 $ 6,147 $ 17,803 $ 15,675 Effective tax provision rate 18.1 % 21.5 % 19.6 % 20.9 % We do not believe that we have any material uncertain tax positions, and do not expect any material changes during the next twelve months. 37 NOTE 11 - Regulatory Capital Matters Banks and bank holding companies are subject to regulatory capital requirements administered by federal banking agencies. Capital adequacy guidelines and, additionally for banks, prompt corrective action regulations involve quantitative measures of assets, liabilities, and certain off-balance sheet items calculated under regulatory accounting practices. Capital amounts and classifications are also subject to qualitative judgments by regulators. Failure to meet capital requirements can initiate regulatory action. Under the Basel III rules, the Parent Company and the Bank must hold a capital conservation buffer above the adequately capitalized risk-based capital ratios. The fully phased in capital conservation buffer is 2.50% for all periods presented. The net unrealized gain or loss on available for sale securities is not included in computing regulatory capital. As of September 30, 2025, both the Parent Company and the Bank met all capital adequacy requirements to which they were subject. Prompt corrective action regulations provide five classifications: well-capitalized, adequately capitalized, undercapitalized, significantly undercapitalized, and critically undercapitalized, although these terms are not used to represent overall financial condition. If adequately capitalized, regulatory approval is required to accept brokered deposits. If undercapitalized, capital distributions are limited, as is asset growth and expansion, and capital restoration plans are required. As of September 30, 2025 and December 31, 2024, the most recent regulatory notifications categorized the Bank as well-capitalized under the regulatory framework for prompt corrective action. There are no conditions or events since that notification that management believes have changed the Bank’s category. Actual and required capital amounts for the Parent Company are as follows as of: Actual For Capital Adequacy Purposes To be Well- Capitalized under Prompt Corrective Action Provisions Amount Ratio Amount Ratio Amount Ratio September 30, 2025 Total risk-based capital to risk-weighted assets: $ 1,192,380 15.81 % $ 603,336 8.00 % N/A N/A Tier 1 risk-based capital to risk-weighted assets: $ 1,040,031 13.79 % $ 452,502 6.00 % N/A N/A Common Equity Tier 1 (CET 1) to risk-weighted assets: $ 1,040,031 13.79 % $ 339,377 4.50 % N/A N/A Tier 1 leverage capital to average assets: $ 1,040,031 12.44 % $ 334,339 4.00 % N/A N/A December 31, 2024 Total risk-based capital to risk-weighted assets: $ 1,128,334 15.42 % $ 585,567 8.00 % N/A N/A Tier 1 risk-based capital to risk-weighted assets: $ 964,517 13.18 % $ 439,175 6.00 % N/A N/A Common Equity Tier 1 (CET 1) to risk-weighted assets: $ 964,517 13.18 % $ 329,381 4.50 % N/A N/A Tier 1 leverage capital to average assets: $ 964,517 12.11 % $ 318,646 4.00 % N/A N/A 38 Actual and required capital amounts for the Bank are as follows as of: Actual For Capital Adequacy Purposes To be Well- Capitalized under Prompt Corrective Action Provisions Amount Ratio Amount Ratio Amount Ratio September 30, 2025 Total risk-based capital to risk-weighted assets: $ 1,096,953 14.57 % $ 602,281 8.00 % $ 752,851 10.00 % Tier 1 risk-based capital to risk-weighted assets: $ 1,012,856 13.45 % $ 451,710 6.00 % $ 602,281 8.00 % Common Equity Tier 1 (CET 1) to risk-weighted assets: $ 1,012,856 13.45 % $ 338,783 4.50 % $ 489,353 6.50 % Tier 1 leverage capital to average assets: $ 1,012,856 12.12 % $ 334,297 4.00 % $ 417,871 5.00 % December 31, 2024 Total risk-based capital to risk-weighted assets: $ 1,018,866 13.94 % $ 584,594 8.00 % $ 730,742 10.00 % Tier 1 risk-based capital to risk-weighted assets: $ 930,890 12.74 % $ 438,445 6.00 % $ 584,594 8.00 % Common Equity Tier 1 (CET 1) to risk-weighted assets: $ 930,890 12.74 % $ 328,834 4.50 % $ 474,982 6.50 % Tier 1 leverage capital to average assets: $ 930,890 11.69 % $ 318,647 4.00 % $ 398,308 5.00 % NOTE 12 - Fair Value Measurements We utilize fair value measurements to record or disclose the fair value on certain assets and liabilities. Fair value is the exchange price that would be received for an asset or paid to transfer a liability (exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. The determination of fair values of financial instruments often requires the use of estimates. In cases where quoted market values in an active market are not available, we use present value techniques and other valuation methods to estimate the fair values of our financial instruments. These valuation models rely on market-based parameters when available, such as interest rate yield curves or credit spreads. Unobservable inputs may be based on management’s judgment assumptions and estimates related to credit quality, our future earnings, interest rates and other relevant inputs. These valuation methods require considerable judgment and the resulting estimates of fair value can be significantly affected by the assumptions made and the methods used. ASC Topic 820 establishes a three-level valuation hierarchy for disclosure of fair value measurements. The hierarchy is based on the transparency of the inputs used in the valuation process with the highest priority given to quoted prices available in active markets and the lowest priority to unobservable inputs where no active market exists. The three levels of inputs that may be used to measure fair value are as follows: Level 1 : Unadjusted quoted prices in active markets for identical assets or liabilities that the reporting entity has the ability to access at the measurement date. Level 2 : Inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly or indirectly. These might include quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the asset or liability (such as interest rates, volatilities, prepayment speeds, credit risks, etc.) or inputs that are derived principally from or corroborated by market data by correlation or other means. Level 3 : Unobservable inputs for determining the fair values of assets or liabilities that reflect an entity’s own beliefs about the assumptions that market participants would use in pricing the assets or liabilities. 39 A financial instrument’s categorization within the valuation hierarchy is based upon the lowest level of input within the valuation hierarchy that is significant to the overall fair value measurement. Transfers between levels of the fair value hierarchy are recognized at the end of the reporting period. The following table sets forth our assets and liabilities measured at fair value on a recurring basis as of: Level 1 Level 2 Level 3 Quoted prices in active markets for identical assets Significant other observable inputs Significant unobservable inputs Total Estimated Fair Value September 30, 2025 Available-for-sale securities $ 33,051 $ 443,063 $ — $ 476,114 Loans held-for-sale — 85,250 — 85,250 Mortgage servicing rights — — 85,695 85,695 Derivative financial instruments - assets — 23,324 — 23,324 Derivative financial instruments - liabilities — ( 14,319 ) — ( 14,319 ) Total $ 33,051 $ 537,318 $ 85,695 $ 656,064 December 31, 2024 Available-for-sale securities $ 31,730 $ 437,346 $ — $ 469,076 Loans held-for-sale — 61,825 — 61,825 Mortgage servicing rights — — 84,258 84,258 Derivative financial instruments - assets — 36,088 — 36,088 Derivative financial instruments - liabilities — ( 22,863 ) — ( 22,863 ) Total $ 31,730 $ 512,396 $ 84,258 $ 628,384 For further details on our Level 3 inputs related to MSRs, see Note 4 - Mortgage Servicing Rights . The following table presents a reconciliation for our Level 3 assets measured at fair value on a recurring basis: For the three months ended September 30, For the nine months ended September 30, 2025 2024 2025 2024 Balance, beginning of period $ 84,736 $ 80,744 $ 84,258 $ 76,701 Total losses included in earnings ( 2,816 ) ( 5,433 ) ( 9,111 ) ( 6,687 ) Purchases, issuances, sales and settlements: Issuances 3,775 3,488 10,548 8,785 Balance, end of period $ 85,695 $ 78,799 $ 85,695 $ 78,799 40 Certain financial assets and financial liabilities are regularly measured at fair value on a nonrecurring basis; that is, the instruments are not measured at fair value on an ongoing basis but are subject to fair value adjustments in certain circumstances. Financial assets measured at fair value on a non-recurring basis during the reported periods include certain collateral dependent loans reported at the fair value of the underlying collateral if repayment is expected solely from the collateral and other real estate owned and foreclosed assets, which, upon initial recognition, were remeasured and reported at fair value through a charge-off to the allowance for credit losses, and subsequent to their initial recognition, were remeasured at fair value through a write-down included in other non-interest expense. The following table sets forth our assets and liabilities that were measured at fair value on a non-recurring basis as of: Level 3 September 30, 2025 December 31, 2024 Collateral dependent loans: Commercial and industrial $ 15,078 $ 12,430 Commercial real estate 3,515 — Residential real estate 549 1,255 Public finance — 5,766 Consumer ( 3 ) — Other — 2,232 Total collateral dependent loans $ 19,139 $ 21,683 Other real estate owned and foreclosed assets, net: Commercial real estate $ 3,660 $ 2,911 Residential real estate 2,783 2,227 Public finance 5,301 — Other 1,674 — Total other real estate owned and foreclosed assets, net: $ 13,418 $ 5,138 The fair value of the financial assets in the table above utilizes the market approach valuation technique, with discount adjustments for differences between comparable sales. 41 Fair value of financial instruments not carried at fair value: The carrying amounts and estimated fair values of financial instruments not carried at fair value are as follows as of: Estimated Fair Value Carrying Value Total Level 1 Level 2 Level 3 September 30, 2025 Assets: Cash and cash equivalents $ 659,899 $ 659,899 $ 659,899 $ — $ — Securities held-to-maturity 34,247 29,705 — 29,705 — Loans (excluding collateral dependent loans) 6,612,001 6,541,222 — — 6,541,222 Restricted equity securities 24,765 24,765 — 24,765 — Accrued interest receivable 34,796 34,796 — 2,741 32,055 Liabilities: Deposits (excluding demand deposits) $ 4,619,301 $ 4,614,470 $ 3,265,813 $ 1,348,657 $ — Securities sold under agreements to repurchase 9,824 9,824 — 9,824 — Subordinated debt, net 76,163 74,796 — 74,796 — Accrued interest payable 8,061 8,061 — 8,061 — December 31, 2024 Assets: Cash and cash equivalents $ 615,917 $ 615,917 $ 615,917 $ — $ — Securities held-to-maturity 35,242 29,563 — 29,563 — Loans (excluding collateral dependent loans) 6,344,377 6,191,461 — — 6,191,461 Restricted equity securities 28,917 28,917 — 28,917 — Accrued interest receivable 32,102 32,102 — 2,131 29,971 Liabilities: Deposits (excluding demand deposits) $ 4,445,237 $ 4,436,305 $ 2,879,662 $ 1,556,643 $ — Securities sold under agreements to repurchase 14,699 14,699 — 14,699 — FHLB advances 135,000 135,000 — 135,000 — Subordinated debt, net 75,841 73,326 — 73,326 — Accrued interest payable 8,705 8,705 — 8,705 — NOTE 13 - Segment Information The Company’s Chief Executive Officer has been identified as the chief operating decision maker (“CODM”), who oversees the operations conducted through our two primary operating segments: Banking and Mortgage Operations. Corporate represents costs not allocated to the operating segments, including those of FirstSun and our non-bank subsidiaries. The Banking segment originates loans and provides deposits and fee based services to consumer, business, and mortgage lending customers. Products offered include a full range of commercial and consumer banking and financial services. The interest income on loans held-for-investment is recognized in the Banking segment, excluding newly originated residential first mortgages within the Mortgage Operations segment. 42 The Mortgage Operations segment originates, sells, services, and manages market risk from changes in interest rates on one-to-four family residential mortgage loans to sell or hold on our balance sheet. Loans originated-to-sell comprise the majority of the lending activity. The Mortgage Operations segment recognizes interest income on loans that are held-for-sale and newly originated residential mortgages held-for-investment, the gains from one to four family residential mortgage sales, and revenue for servicing loans and other ancillary fees following a sales transaction. Revenue from servicing activities is earned on a contractual fee basis. The Mortgage Operations segment services loans for the held-for-investment portfolio, for which it earns revenue via an intercompany service fee allocation which appears as a cost to Banking in mortgage fees. Forward traded loan purchases and sales settlements as well as mortgage servicing rights and related fair value adjustments are reported in this segment. Corporate represents miscellaneous other expenses of a corporate nature as well as revenue and expenses not directly assigned or allocated to the Banking or Mortgage Operations segments. The majority of executive management’s time is spent managing operating segments; related costs have been allocated between the operating segments and Corporate. Allocations of expenses to the operating segments are based on estimated uses of those services. We use a funds transfer pricing process to allocate costs, capital and resources to each operating segment. This allows us to identify the cost of funds within each segment, measure the profitability of each segment by relating costs to revenue, and to evaluate each operating segment’s impact on consolidated earnings. Our CODM reviews net income to budgeted net income to assess segment performance on a monthly basis and to make decisions about allocating capital and personnel to the segments. Significant segment totals are reconciled to the financial statements as follows for the three months ended September 30,: Banking Mortgage Operations Corporate Total Segments 2025 Summary of Operations Interest income $ 108,866 $ 12,254 $ 8 $ 121,128 Interest expense 32,856 5,705 1,614 40,175 Net interest income (expense) 76,010 6,549 ( 1,606 ) 80,953 Provision for (benefit from) credit losses 10,544 ( 444 ) — 10,100 Noninterest income: Service charges on deposit accounts 2,162 — — 2,162 Treasury management service fees 4,402 — — 4,402 Credit and debit card fees 2,670 1 — 2,671 Trust and investment advisory fees 1,536 — — 1,536 (Loss) income from mortgage banking services, net ( 646 ) 13,287 — 12,641 Other noninterest income 2,921 — — 2,921 Total noninterest income 13,045 13,288 — 26,333 Noninterest expense: Salary and employee benefits 34,494 9,740 588 44,822 Occupancy and equipment 8,707 794 90 9,591 Amortization of intangible assets 578 — — 578 Other noninterest expenses 9,002 4,509 399 13,910 Total noninterest expense 52,781 15,043 1,077 68,901 Income (loss) before income taxes $ 25,730 $ 5,238 $ ( 2,683 ) $ 28,285 Other Information Depreciation expense and amortization on premises and equipment $ 2,034 $ 33 $ — $ 2,067 Identifiable assets $ 7,184,376 $ 1,177,326 $ 133,735 $ 8,495,437 43 Banking Mortgage Operations Corporate Total Segments 2024 Summary of Operations Interest income $ 108,712 $ 10,211 $ 9 $ 118,932 Interest expense 36,291 5,239 1,244 42,774 Net interest income (expense) 72,421 4,972 ( 1,235 ) 76,158 Provision for (benefit from) credit losses 6,369 ( 1,369 ) — 5,000 Noninterest income: Service charges on deposit accounts 2,562 ( 2 ) — 2,560 Treasury management service fees 3,748 — — 3,748 Credit and debit card fees 2,737 1 — 2,738 Trust and investment advisory fees 1,395 — — 1,395 (Loss) income from mortgage banking services, net ( 611 ) 9,449 — 8,838 Other noninterest income 2,796 — — 2,796 Total noninterest income 12,627 9,448 — 22,075 Noninterest expense: Salary and employee benefits 30,518 8,302 486 39,306 Occupancy and equipment 8,260 778 83 9,121 Amortization of intangible assets 651 — — 651 Terminated merger related expenses 1,285 — 348 1,633 Other noninterest expenses 9,346 4,051 556 13,953 Total noninterest expense 50,060 13,131 1,473 64,664 Income (loss) before income taxes $ 28,619 $ 2,658 $ ( 2,708 ) $ 28,569 Other Information Depreciation expense and amortization on premises and equipment $ 1,795 $ 45 $ — $ 1,840 Identifiable assets $ 6,950,905 $ 1,047,853 $ 139,729 $ 8,138,487 44 Significant segment totals are reconciled to the financial statements as follows for the nine months ended September 30,: Banking Mortgage Operations Corporate Total Segments 2025 Summary of Operations Interest income $ 313,415 $ 35,057 $ 24 $ 348,496 Interest expense 93,583 16,996 3,987 114,566 Net interest income (expense) 219,832 18,061 ( 3,963 ) 233,930 Provision for (benefit from) credit losses 19,068 ( 668 ) — 18,400 Noninterest income: Service charges on deposit accounts 6,205 — — 6,205 Treasury management service fees 12,929 — — 12,929 Credit and debit card fees 7,982 3 — 7,985 Trust and investment advisory fees 4,430 — — 4,430 (Loss) income from mortgage banking services, net ( 1,899 ) 36,869 — 34,970 Other noninterest income 8,661 ( 45 ) — 8,616 Total noninterest income 38,308 36,827 — 75,135 Noninterest expense: Salary and employee benefits 98,540 27,887 1,877 128,304 Occupancy and equipment 26,003 2,455 210 28,668 Amortization and impairment of intangible assets 1,784 — — 1,784 Other noninterest expenses 26,658 13,078 1,241 40,977 Total noninterest expense 152,985 43,420 3,328 199,733 Income (loss) before income taxes $ 86,087 $ 12,136 $ ( 7,291 ) $ 90,932 Other Information Depreciation expense and amortization on premises and equipment $ 6,056 $ 114 $ — $ 6,170 Identifiable assets $ 7,184,376 $ 1,177,326 $ 133,735 $ 8,495,437 45 Banking Mortgage Operations Corporate Total Segments 2024 Summary of Operations Interest income $ 315,255 $ 28,220 $ 26 $ 343,501 Interest expense 104,661 15,246 3,731 123,638 Net interest income (expense) 210,594 12,974 ( 3,705 ) 219,863 Provision for credit losses 24,402 ( 1,702 ) — 22,700 Noninterest income: Service charges on deposit accounts 7,279 ( 3 ) — 7,276 Treasury management service fees 10,847 — — 10,847 Credit and debit card fees 8,444 3 — 8,447 Trust and investment advisory fees 4,351 — — 4,351 (Loss) income from mortgage banking services, net ( 1,778 ) 31,161 — 29,383 Other noninterest income 7,853 — — 7,853 Total noninterest income 36,996 31,161 — 68,157 Noninterest expense: Salary and employee benefits 91,290 23,881 1,316 116,487 Occupancy and equipment 23,864 2,382 171 26,417 Amortization of intangible assets 2,118 — — 2,118 Terminated merger related expenses 2,064 — 3,104 5,168 Other noninterest expenses 27,107 12,123 947 40,177 Total noninterest expense 146,443 38,386 5,538 190,367 Income (loss) before income taxes $ 76,745 $ 7,451 $ ( 9,243 ) $ 74,953 Other Information Depreciation expense and amortization on premises and equipment $ 5,298 $ 143 $ — $ 5,441 Identifiable assets $ 6,950,905 $ 1,047,853 $ 139,729 $ 8,138,487 46 NOTE 14 - Commitments and Contingencies Commitments We are a party to financial instruments with off-balance sheet risk in the normal course of business to meet the financing needs of our customers. These financial instruments include loan commitments, standby letters of credit, and documentary letters of credit and involve, to varying degrees, elements of credit and interest rate risk in excess of the amount recognized in the financial statements. Our exposure to credit loss in the event of nonperformance by the other party of these loan commitments and standby letters of credit is represented by the contractual amount of those instruments. We use the same credit policies in making commitments and conditional obligations as we do for on-balance sheet financial instruments. Undistributed portion of committed loans and unused lines of credit Loan commitments are agreements to lend to a customer as long as there is no customer violation of any condition established in the contract. Commitments generally have fixed expiration dates or other termination clauses and may require a payment of a fee. As of September 30, 2025 and December 31, 2024, commitments included the funding of fixed-rate loans totaling $ 138,174 and $ 184,780 and variable-rate loans totaling $ 1,363,989 and $ 1,615,505 , respectively. The fixed-rate loan commitments have interest rates ranging from 1.00 % to 18.00 % at September 30, 2025 and December 31, 2024, and maturities ranging from 1 month to 17 years at September 30, 2025 and December 31, 2024. Standby letters of credit Standby letters of credit are conditional commitments to guarantee the performance of a customer to a third-party. The credit risk involved in issuing letters of credit is essentially the same as that involved in extending loan facilities to customers. Since many loan commitments and letters of credit expire without being drawn upon, the total commitment amount does not necessarily represent future cash requirements. We evaluate each customer’s creditworthiness on a case-by-case basis. The amount of collateral obtained, if deemed necessary upon extension of credit, is based on our credit evaluation of the counterparty. Collateral held varies but may include accounts receivable, inventory, property, plant and equipment, owner occupied real estate, and/or income-producing commercial properties. As of September 30, 2025 and December 31, 2024, our standby letters of credit commitment totaled $ 41,225 and $ 39,586 , respectively. MPF Master Commitments The Bank has executed MPF Master Commitments (Commitments) with the FHLB to deliver mortgage loans and to guarantee the payment of any realized losses that exceed the FHLB’s first loss account for mortgages delivered under the Commitments. The Bank receives credit enhancement fees from the FHLB for providing this guarantee and continuing to manage the credit risk of the MPF Program mortgage loans. As of September 30, 2025 and December 31, 2024, the Bank considered the amount of any of its liability for the present value of the credit enhancement fees less any expected losses in the mortgages delivered under the Commitments to be immaterial, and has not recorded a liability and offsetting receivable. As of September 30, 2025 and December 31, 2024, the maximum potential amount of future payments that the Bank would have been required to make under the Commitments was $ 4,170 and $ 3,887 , respectively. Under the Commitments, the Bank agrees to service the loans and therefore, is responsible for any necessary foreclosure proceedings. Any future recoveries on any losses would not be paid by the FHLB under the Commitments. The Bank has not experienced any material losses under these guarantees. Contingencies We generally sell loans to investors without recourse; therefore, the investors have assumed the risk of loss or default by the borrower. However, we are usually required by these investors to make certain standard representations and warranties relating to credit information, loan documentation, and collateral. To the extent that we do not comply with such representations, we may be required to repurchase the loans or indemnify these investors for any losses from borrower defaults. We establish reserves for potential losses related to these representations and warranties if deemed appropriate and such reserves would be recorded within accrued expenses and other liabilities. In assessing the adequacy of the reserve, we evaluate various factors including actual write-offs during the period, historical loss experience, known delinquent and other problem loans, and economic trends and conditions in the industry. 47 From time to time, we are a defendant in various claims, legal actions, and complaints arising in the ordinary course of business. We periodically review all outstanding pending or threatened legal proceedings and determine if such matters will have an adverse effect on our business, financial condition, results of operations or cash flows. Litigation C heck Fraud Litigation Rodeo Electrical Services, Inc. and its owner (collectively, “RESI”) filed a civil action against the Bank on June 23, 2020 in the Santa Fe County, New Mexico District Court. The complaint alleged that the Bank conspired with or otherwise aided a former RESI employee’s embezzlement of approximately $ 0.4 million from RESI. The complaint sought compensatory, exemplary, statutory and punitive damages, as well as payment of RESI’s legal fees and expenses. On January 18, 2024, the jury awarded RESI approximately $ 2.1 million which included punitive damages. Judgment on the jury’s award was entered on July 25, 2024. On June 6, 2025, a supplemental award of RESI’s legal fees of $ 0.8 million was entered. On June 30, 2025 the Bank filed an appeal, and on August 20, 2025, after mediation, the parties reached a settlement, all of which is covered by the Bank’s insurance. Because the settlement is covered by insurance, the settlement will not have a material effect on the financial condition or results of operations of the Bank. We establish reserves for contingencies, including legal proceedings, when potential losses become probable and can be reasonably estimated. While the ultimate resolution of any legal proceedings, including the matters described above, cannot be determined at this time, based on information presently available, and after consultation with legal counsel, management believes that the ultimate outcome in these above legal proceedings, either individually or in the aggregate, will not have a material adverse effect on our financial statements. It is possible, however, that future developments could result in an unfavorable outcome for or resolution of any of these proceedings, which may be material to our results of operations for a given fiscal period. 48 NOTE 15 - Lease Commitments Our leases relate primarily to office space and bank branches with remaining lease terms of generally 1 to 15 years. Certain lease arrangements contain extension options which typically range from 5 to 10 years at the then fair market rental rates. As these extension options are not generally considered reasonably certain of exercise, they are not included in the lease term. September 30, 2025 December 31, 2024 ROU asset on leased property, gross $ 40,933 $ 38,779 Accumulated amortization ( 18,110 ) ( 16,303 ) ROU asset, net (included in prepaid expenses and other assets in our consolidated balance sheets) $ 22,823 $ 22,476 Lease liability (included in accrued expenses and other liabilities in our consolidated balance sheets) $ 24,562 $ 24,376 Weighted Average Remaining Life - Operating Leases (years) 5.07 5.09 Weighted Average Rate - Operating Leases 3.34 % 2.61 % The following table reconciles future undiscounted lease payments due under non-cancelable operating leases to the aggregate operating lessee lease liability as of September 30, 2025: Remainder of 2025 $ 2,525 2026 6,794 2027 4,787 2028 4,461 2029 3,685 2030 4,913 Thereafter 331 Total undiscounted operating lease liability 27,496 Imputed interest 2,934 Total operating lease liability included in the accompanying balance sheet $ 24,562 Total lease expense for three months ended September 30, 2025 and 2024 was $ 1,885 and $ 1,857 , respectively. Total lease expense for the nine months ended September 30, 2025 and 2024 was $ 5,989 and $ 5,695 , respectively. The components of total lease expense were as follows: For the three months ended September 30, For the nine months ended September 30, 2025 2024 2025 2024 Operating leases $ 1,872 $ 1,813 $ 5,862 $ 5,680 Short-term leases 63 74 264 168 Sublease income ( 50 ) ( 30 ) ( 137 ) ( 153 ) Net lease expense $ 1,885 $ 1,857 $ 5,989 $ 5,695 We do not currently have any significant finance leases in which we are the lessee, material related-party leases, leases containing residual value guarantees or restrictive covenants. 49 NOTE 16 - Subsequent Events The Company has evaluated subsequent events for potential recognition and disclosure through the filing date of this Form 10-Q. Subordinated Notes Redemption On October 1, 2025, FirstSun Capital Bancorp redeemed the entire principal amount, or $ 40 million, of its 6.000 % Fixed-to-Floating Rate Subordinated Notes Due July 1, 2030. Proposed Merger with First Foundation Inc. On October 27, 2025, FirstSun and First Foundation, Inc. (“First Foundation”) entered into a definitive merger agreement pursuant to which First Foundation will merge with and into FirstSun (the “Merger”). In accordance with the terms and subject to the conditions set forth in the merger agreement, FirstSun will exchange 0.16083 shares of its common stock for each share of First Foundation common stock and preferred stock (on a fully converted basis) outstanding at the effective time of the Merger. Additionally, First Foundation’s warrant holders will exercise their warrants early and receive FirstSun common stock in the merger and also receive additional cash consideration totaling $ 17.5 million in the aggregate. The aggregate transaction value, inclusive of the cash consideration being paid to warrant holders, is estimated at $ 785 million based on FirstSun’s closing price as of October 24, 2025. 50