The Office of the Comptroller of the Currency approved the merger of First Foundation Bank, N.A. and Sunflower Bank, N.A., the banking subsidiaries of First Foundation Inc. and FirstSun Capital Bancorp, on February 25, 2026. The approval removes a key regulatory hurdle and allows the two banks to move forward with integration and finalization of the transaction.
Under the terms of the deal, FirstSun stockholders will own 59.5% of the combined entity and First Foundation stockholders 40.5%. The transaction is valued at approximately $785 million, including cash consideration for warrant holders. The combined bank will have a larger deposit base and a broader geographic footprint across seven states, positioning it to compete more effectively with regional peers such as Banc of California and CVB Financial.
FirstSun reported a Q4 2025 earnings beat, with an adjusted EPS of $0.95 versus the consensus estimate of $0.85, and revenue of $110.21 million versus the $107.61 million forecast. The strong performance was driven by a 4.18% net interest margin and 8.5% annualized loan growth, underscoring the bank’s solid underwriting and pricing power.
In contrast, First Foundation posted a Q4 2025 loss of $0.04 per share against an estimate of $0.03, and revenue missed expectations. The loss reflects ongoing challenges such as negative earnings growth, high debt levels, and rising problem credits. The merger is viewed as a way to combine First Foundation’s community‑bank strengths with FirstSun’s growth momentum and to address its financial headwinds.
The next steps for the transaction include obtaining final approval from the Federal Reserve Board, holding shareholder votes on February 27, 2026, and completing the integration of systems and operations. The parties expect the merger to close early in the second quarter of 2026.
The OCC’s approval signals confidence in the financial soundness and governance plans of both banks. By creating a larger institution with a more diversified deposit base and expanded geographic reach, the merger is expected to enhance competitive positioning, enable cross‑selling of banking and wealth‑management services, and provide a platform for future growth.
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