v3.26.1
Segment Information
 6 Months Ended
Jun. 30, 2026
Segment Reporting [Abstract]  
Segment Information Segment Information
Operating segments are components of a business where separate financial information is available and evaluated regularly by the chief operating decision maker (“CODM”) in deciding how to allocate resources and in assessing performance. The Company’s Chief Executive Officer has been identified as the CODM, who oversees the operations conducted through our primary operating segments. Effective April 1, 2026, we revised our segment reporting structure to better reflect how the CODM evaluates the performance and allocates resources across the business following our acquisition of First Foundation. Historically, the Company had 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.
Beginning April 1, 2026, we added a third primary operating segment, Private Wealth Banking. This new segment reflects First Foundation Advisors, an SEC-registered investment adviser acquired as part of the First Foundation acquisition. As a result, we now have three primary operating segments: Banking, Private Wealth Banking and Mortgage Operations, and we will continue to report Corporate, which represents costs not allocated to the operating segments, including those of FirstSun and our non-bank subsidiaries. The results discussed below reflect the updated segment structure for all current-period activity. Prior-period segment information has been recast, where applicable, to conform to the current presentation. The change in reportable segments did not impact our consolidated financial statements for prior periods other than reclassifications to conform prior period segment information to the current presentation.
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.
The Private Wealth Banking segment primarily consists of First Foundation Advisors, a fee-based investment adviser which provides investment advisory and wealth management services primarily to high-net-worth individuals, their families and their family businesses, and other affiliated organizations. In addition, the Bank provides trust services, which consist primarily of the management of trust assets, including financial planning services. We earn trust and investment advisory fees from contracts with our customers to manage and invest their assets and/or transact on their accounts. These fees are generally assessed based on a tiered scale of the market value of assets under management. Related services are based on a fixed fee schedule.
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 for sale 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, Private Wealth 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 June 30,:
BankingPrivate Wealth BankingMortgage OperationsCorporateTotal Segments
2026
Summary of Operations
Interest income$216,631 $134 $13,185 $66 $230,016 
Interest expense79,428 (1,726)6,035 3,084 86,821 
Net interest income (expense)137,203 1,860 7,150 (3,018)143,195 
Provision for (benefit from) credit losses41,708 — (1,308)— 40,400 
Noninterest income:
Deposit account service fees2,281 11 — — 2,292 
Treasury management service fees5,007 60 — — 5,067 
Credit and debit card fees2,925 27 — — 2,952 
Trust and investment advisory fees(67)9,480 — — 9,413 
Mortgage banking services, net(652)— 16,610 — 15,958 
Other noninterest income5,133 133 — — 5,266 
Total noninterest income14,627 9,711 16,610 — 40,948 
Noninterest expense:
Salary and employee benefits45,985 8,160 12,882 1,717 68,744 
Occupancy, equipment and software13,619 534 1,281 70 15,504 
Customer service costs2,742 — — — 2,742 
Amortization of intangible assets3,506 731 — — 4,237 
Merger related expenses40,905 805 — 15,849 57,559 
Other noninterest expenses13,849 3,110 5,378 589 22,926 
Total noninterest expense120,606 13,340 19,541 18,225 171,712 
Income (loss) before income taxes$(10,484)$(1,769)$5,527 $(21,243)$(27,969)
Other Information
Depreciation expense on premises and equipment and amortization on software$2,734 $4 $56 $— $2,794 
Identifiable assets$14,228,523 $111,120 $1,268,746 $109,596 $15,717,985 
BankingPrivate Wealth BankingMortgage OperationsCorporateTotal Segments
2025
Summary of Operations
Interest income$103,766 $1,307 $11,840 $8 $116,921 
Interest expense32,517 (928)5,660 1,173 38,422 
Net interest income (expense)71,249 2,235 6,180 (1,165)78,499 
Provision for (benefit from) credit losses4,462 — 38 — 4,500 
Noninterest income:
Deposit account service fees2,010 6 — — 2,016 
Treasury management service fees4,266 67 — — 4,333 
Credit and debit card fees2,710 17 1 — 2,728 
Trust and investment advisory fees— 1,473 — — 1,473 
Mortgage banking services, net(631)— 13,905 — 13,274 
Other noninterest income3,247 2 — — 3,249 
Total noninterest income11,602 1,565 13,906 — 27,073 
Noninterest expense:
Salary and employee benefits30,906 2,084 10,280 651 43,921 
Occupancy, equipment and software8,340 276 866 59 9,541 
Amortization of intangible assets546 32 — — 578 
Merger related expenses285 — — — 285 
Other noninterest expenses7,454 1,570 4,351 410 13,785 
Total noninterest expense47,531 3,962 15,497 1,120 68,110 
Income (loss) before income taxes$30,858 $(162)$4,551 $(2,285)$32,962 
Other Information
Depreciation expense on premises and equipment and amortization on software$2,023 $3 $42 $— $2,068 
Identifiable assets$7,007,535 $93,596 $1,199,850 $134,880 $8,435,861 
Significant segment totals are reconciled to the financial statements as follows for the six months ended June 30,:
BankingPrivate Wealth BankingMortgage OperationsCorporateTotal Segments
2026
Summary of Operations
Interest income$318,844 $1,240 $25,985 $73 $346,142 
Interest expense107,421 (2,656)11,795 3,608 120,168 
Net interest income (expense)211,423 3,896 14,190 (3,535)225,974 
Provision for (benefit from) credit losses49,778 — (1,128)— 48,650 
Noninterest income:
Deposit account service fees4,369 19 — — 4,388 
Treasury management service fees9,552 128 — — 9,680 
Credit and debit card fees5,620 45 — — 5,665 
Trust and investment advisory fees(67)10,969 — — 10,902 
Mortgage banking services, net(1,308)— 31,581 — 30,273 
Other noninterest income7,074 141 — — 7,215 
Total noninterest income25,240 11,302 31,581 — 68,123 
Noninterest expense:
Salary and employee benefits78,599 10,204 24,602 2,695 116,100 
Occupancy, equipment and software22,064 799 2,510 137 25,510 
Customer service costs2,742 — — — 2,742 
Amortization and impairment of intangible assets4,013 731 — — 4,744 
Merger related expenses43,227 805 — 16,208 60,240 
Other noninterest expenses21,283 4,967 10,473 994 37,717 
Total noninterest expense171,928 17,506 37,585 20,034 247,053 
Income (loss) before income taxes$14,957 $(2,308)$9,314 $(23,569)$(1,606)
Other Information
Depreciation expense on premises and equipment and amortization on software$4,833 $8 $90 $— $4,931 
Identifiable assets$14,228,523 $111,120 $1,268,746 $109,596 $15,717,985 
BankingPrivate Wealth BankingMortgage OperationsCorporateTotal Segments
2025
Summary of Operations
Interest income$202,145 $2,404 $22,803 $16 $227,368 
Interest expense62,743 (2,016)11,291 2,373 74,391 
Net interest income (expense)139,402 4,420 11,512 (2,357)152,977 
Provision for (benefit from) credit losses8,524 — (224)— 8,300 
Noninterest income:
Deposit account service fees4,030 13 — — 4,043 
Treasury management service fees8,394 133 — — 8,527 
Credit and debit card fees5,278 34 2 — 5,314 
Trust and investment advisory fees— 2,894 — — 2,894 
Mortgage banking services, net(1,253)— 23,582 — 22,329 
Other noninterest income5,742 (2)(45)— 5,695 
Total noninterest income22,191 3,072 23,539 — 48,802 
Noninterest expense:
Salary and employee benefits60,077 3,969 18,147 1,289 83,482 
Occupancy, equipment and software16,765 531 1,661 120 19,077 
Amortization of intangible assets1,143 63 — — 1,206 
Merger related expenses285 — — — 285 
Other noninterest expenses14,102 3,269 8,569 842 26,782 
Total noninterest expense92,372 7,832 28,377 2,251 130,832 
Income (loss) before income taxes$60,697 $(340)$6,898 $(4,608)$62,647 
Other Information
Depreciation expense on premises and equipment and amortization on software$4,015 $7 $81 $— $4,103 
Identifiable assets$7,007,535 $93,596 $1,199,850 $134,880 $8,435,861