FirstSun Capital Bancorp

Good morning and welcome to the First Son Capital Bank Corp First Quarter 2026 Earnings Conference Call. At this time, all participants are in listen-only mode. Later, we will conduct a question and answer session. If you would like to ask a question during this time, simply press star followed by the number one on your telephone keypad. If you would like to withdraw your question, press star one again. Also, as a reminder, this call may be recorded. I'd now like to turn the call over to Ed Jacks, 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 Coferra, our Chief Financial Officer, and Jennifer Norris, our Chief Credit Officer. We will start the call with some brief remarks to highlight commentary around our first quarter results and recent First Foundation acquisition before moving into questions. Our comments will reference the earnings release and earnings presentation, which you will find on our website under the investor relations section. During this call, we will comment on our financial performance using both gap metrics and non-gap financial measures. Important information about these non-gap financial measures, including reconciliations to comparable gap measures, is included in the appendix to our earnings presentation and in our earnings release. During this call, we will also 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. Please refer to our earnings presentation as well as our annual report on Form 10-K and our other SEC filings for a further discussion of the company's risk factors and other important information regarding our forward-looking statements. We undertake no obligation to publicly revise or update any forward-looking statement except as required by law. I will now turn the call over to Neil Arnold.

Thank you, Ed, and good morning. Thank you for joining us. It's a busy time right now at First Son, as we've just recently closed the acquisition of First Foundation. All of our teams are hard at work with the integration of these businesses. We're seeing some great examples of teamwork throughout our business lines on the sales side, as well as across our staff teams. So I'm very encouraged by the progress we've made so far. And Rob will talk about that. I'd like to start with some comments on our performance for the first quarter before circling back to some comments with regard to the first foundation acquisition. You know, we're pleased with the momentum we saw in our business to start this year. We believe our relationship focus diversified business model, and being in some of the largest fast-growing markets in the country continues to be an important driver to our overall performance. For the quarter, we had adjusted net income of $23.7 million, representing an adjusted diluted earnings per share of 84 cents and an adjusted ROA of 114. We saw very robust loan growth of over 16% annualized in the quarter, as well as continued expansion of our net interest margin to a strong four and a quarter. And we also saw a solid revenue mix on the non-interest income side, representing 24.7% of total revenue. On the asset quality side, we had higher provision, as I'm sure you all saw, in the quarter due to a combination of factors. First of all, some portfolio downgrades, as well as strong loan growth. Loan balances increased by approximately $267 million in the first quarter. We did see two loan charge-offs, and we're seeing some deterioration in value realization in the event of loss. But the significant loan growth we saw in the first quarter materially impacted our higher provision expense. As we've noted before, in addition to traditional return measurements, part of our reoccurring performance monitoring focus on what we call our credit adjusted NIN. And we believe our performance there continues to remain strong. Turning to our recently completed first foundation acquisition. As I mentioned, we're seeing some great energy across the teams since the deal closed on April 1st. The sharing of information and knowledge across the combined branch teams, across the legacy Peirce Foundation wealth advisory business, and our commercial and residential teams is already driving new business opportunity. I believe this teamwork will drive even greater long-term benefits to our future performance. As I've said from the beginning of this transaction, our focus is on de-risking the acquired balance sheet through a repositioning strategy that will allow us to unlock the core franchise and capitalize on the great market opportunities in the new acquired footprint, particularly in Southern California and in the deposit-rich markets of Southwest Florida. Our second quarter emphasis is on completing the post-acquisition balance sheet repositioning and we believe we're well underway in execution. I'll let Rob cover some of the details there. Our third quarter emphasis is on completing our main application system conversions and unlocking the rest of the additional cost synergies that are included in that. We believe the acquisition represents a significant step forward in the continuing growth and evolution of this franchise. The combination enhances our presence in great attractive high growth markets, and it further expands our regional footprint and gives us greater scale across our core businesses. Strategically, the expanded branch network will strengthen our ability to serve clients locally while enhancing our deposit gathering capabilities and overall relationship density. In addition, the transaction significantly expands our wealth platform, which will allow us to deliver a more comprehensive suite of advisory and investment solutions to a broader client base. Taken together, we believe these benefits enhance our long-term growth profile and improve the revenue diversification and strengthen the durability of this franchise so that we drive sustainable long-term value for shareholders. Our near-term focus remains on disciplined execution of our acquisition-related activities and completing the balance sheet repositioning we talked about, successfully executing our system conversion, and realizing the identified cost synergies. As we move through this year, we are confident our execution will drive improved profitability, a stronger funding portfolio, and great long-term shareholder value. Overall, I'm really proud of the hard work all of the teams have been underway on and excited by the momentum across our extended footprint and the opportunities that lie ahead. I'll now pass the call over to Rob for some further color on our financial results as well as some of the integration activities underway.