FirstSun Capital Bancorp

we'll conduct a question and answer session. If you'd like to ask a question during this time, simply press star followed by the number one on your telephone keypad. If you'd like to withdraw your question, press star followed by two. Also, as a reminder, this call may be recorded. I'd now like to turn the call over to Ed Jack, First Sons Director of Investor Relations and Business Development. You may begin.

thank you and good morning i'm joined today by neil arnold our chief executive officer and president rob caferra our chief financial officer and jennifer norris our chief credit officer we will start the call with some brief remarks to highlight a few items of interest and then move into questions our comments will reference the earnings release and investor presentation which you will find on our website under the investor relations section during this call we may make remarks about future expectations plans and prospects for the company that constitute forward-looking statements for the purposes of the safe harbor provisions under the Private Securities Litigation Reform Act of 1995. Actual results may differ materially from those indicated by these forward-looking statements as a result of various important factors, including those discussed in our annual report on Form 10-K, which is on file with the SEC. I will now turn the call over to Neil Arman.

Good morning, and thank you for joining us. And thank you, Ed. We might be a little rusty. It's been a while since we did earnings calls. But let me start by saying we're quite pleased with the start for the year, certainly here in the first quarter. Our focus on consistently delivering value-added solutions across the footprint continues to drive our growth and our strong financial performance. This quarter, we achieved net income of $23.6 million representing earnings per share of 83 cents and a 120 ROA. This quarter also was highlighted by continued strong net interest margin performance at 4.07 and solid loan deposit growth with loans up 7% and deposits up 12% annualized at the end of the quarter. Our focus on relationship-based banking across our business lines continues to be evidenced by the revenue mix with our service fee income up slightly over last quarter and representing 22.6% of our total revenues. We also maintained expense at a level flat to last quarter adjusted for all the growth opportunities in front of us. Our focus remains on delivering positive operating leverage in 2025 and beyond. We believe we are making the right investments to position us favorably as we move forward. Certainly, we all recognize the talk about tariffs and potential economic impact is spreading around the industry right now. While it's still early, I think many are exercising more and more caution. We haven't seen pervasive issues emerging within our loan portfolio, and that is somewhat a function of the nature of our customer base and not being overly reliant on any one industry. Having said that, in the first quarter, we did see one $13 million commercial credit experience some performance challenges that has cross-border component to it. The credit was moved to non-accrual and did negatively impact our loan loss provision in the first quarter. And I think most of you have heard us say the challenge with CNI is it's lumpy. We don't see any other pervasive issues, however, at this time.