FIRSTSUN CAPITAL BANCORP (FSUN) as of March 31, 2026 presents a balance sheet where book equity of approximately $1.18B (total assets $8.57B less total liabilities $7.39B) is substantially eroded under liquidation assumptions. Applying standard bank liquidation haircuts: cash and equivalents ($414M) recovers at par; loans held-for-investment net of ACL ($6.86B gross at $6.94B less $83M ACL) would face a 20-30% haircut on the commercial book given forced-sale dynamics—the 45.5% C&I concentration and $59.4M nonaccrual balance (0.86% of loans) are notable credit quality flags. Q1 2026 net charge-offs spiked to $10.6M (annualized NCO rate 0.63%), versus $0.6M in Q1 2025, driven almost entirely by a single $10.6M C&I charge-off, compressing ACL coverage from 1.27% (Dec 2025) to 1.20% of total loans. Available-for-sale securities ($458.5M fair value) carry $38.3M in gross unrealized losses, predominantly in positions held >12 months ($363.9M with $38.2M accumulated loss); under orderly liquidation these securities would likely trade near current fair value. Held-to-maturity securities ($33.6M carrying, $29.0M fair value) carry a $4.5M embedded loss that would crystallize on wind-up. Goodwill ($93.5M) and other intangibles ($4.5M) recover zero. Mortgage servicing rights ($89.0M at fair value, Level 3) are illiquid in stress and would face a significant haircut. BOLI ($83.8M) recovers near par. Operating lease liabilities ($29.0M) and deposits without stated maturity ($5.88B, classified as due within one year in the contractual obligation table) represent full face-value obligations. Subordinated debt ($38.9M, all due after 5 years) and FHLB term advances ($75M short-term) must be settled at face. Total deposits of $7.09B are the dominant liability; ~$2.0B is uninsured and uncollateralized, creating run risk in a distressed scenario that could accelerate liquidation costs. The First Foundation merger (announced Oct 2025, closed March 31, 2026 per exhibit disclosures) is the most significant structural change from the prior 10-K period: FSUN assumed First Foundation's subordinated debt ($38.9M face, 3.50% fixed-to-floating due 2032) and added legacy FF assets/liabilities to the consolidated balance sheet. The filing does not separately disclose the fair value marks or credit quality of acquired FF loans, which is material to liquidation recovery but not separately XBRL-tagged. Pre-tax acquisition costs of $2.7M were expensed in Q1 2026. Liquid assets fell sharply QoQ—from $642M (7.6% of assets at Dec 2025) to $400M (4.7%), primarily from a drawdown of Federal Reserve cash balances, reducing the immediate liquidity cushion relative to the deposit base. On a conservative liquidation basis, equity recovery is likely negative when MSR, goodwill, intangible write-offs, and the deposit liability stack are applied at face.
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