FirstSun is a discounted regional-bank turnaround where aggressive First Foundation de-risking could unlock a powerful post-merger re-rating.
Overview
FirstSun Capital Bancorp is executing a high-stakes but value-creating transformation after closing its First Foundation merger on April 1, 2026. The acquired bank brought distressed multifamily CRE exposure and costly wholesale funding, but management is rapidly de-risking the balance sheet through asset sales, including an $890 million Brookfield transaction. Despite near-term dilution and integration expenses, FSUN trades below tangible book at 0.94x while maintaining strong capital and a path toward ~1.45% ROAA and ~13.3% ROATCE by 2027.