FirstSun Capital Bancorp (NASDAQ: FSUN) and First Foundation Inc. (NYSE: FFWM) announced on February 25, 2026 that the Office of the Comptroller of the Currency has approved the merger of their bank subsidiaries, Sunflower Bank, N.A. and First Foundation Bank, with Sunflower Bank, N.A. continuing as the surviving entity. The approval removes a key regulatory hurdle and brings the transaction closer to completion, which is expected in early Q2 2026.
The deal is an all‑stock transaction valued at approximately $785 million. FirstSun shareholders will own 59.5 % of the combined entity and First Foundation shareholders 40.5 %. The merger will create a combined institution with roughly $17 billion in assets, expanding FirstSun’s geographic footprint into Southern California and adding First Foundation’s digital capabilities. Management highlighted the opportunity to generate cost‑synergy opportunities, with projections of more than 30 % earnings‑per‑share accretion by 2027 and fully phased‑in cost savings that are expected to lift return on average assets to about 1.45 % and return on average tangible common equity to roughly 13.3 %.
A key component of the transaction is a balance‑sheet restructuring that will reduce non‑core assets by $3.4 billion, unlocking First Foundation’s core franchise and improving capital efficiency. The reduction is expected to strengthen the combined entity’s risk profile and support its strategic growth initiatives.
"This merger strengthens our ability to deliver exceptional financial services and expands our reach across key markets," said Tom Shafer, First Foundation chief executive. "This combination allows us to leverage FirstSun’s proven deposit and commercial‑industrial‑focused growth strategy at a larger scale. We’re enthusiastic about the opportunities this merger unlocks to enhance performance and deepen our specialty business capabilities," added Mollie Hale Carter, FirstSun executive chair. Neal Arnold, FirstSun’s chief executive officer and president, noted that "the results for this quarter continue to demonstrate the fundamental strength of our core franchise."
Strategically, the merger positions FirstSun as a more competitive regional bank, addressing its scale disadvantage relative to larger peers and accelerating its expansion into Southern California. The combined entity will benefit from First Foundation’s customer base, digital platform, and geographic reach, while FirstSun gains access to a broader deposit base and enhanced technology capabilities. The projected EPS accretion and improved return metrics underscore the financial upside of the deal.
Regulatory and shareholder milestones remain on track. The OCC approval is followed by pending Federal Reserve approval, and shareholder meetings for both companies are scheduled for February 27, 2026. The transaction is expected to close in early Q2 2026, marking a significant step toward completing the merger and realizing the anticipated synergies.
The approval comes amid a broader wave of banking consolidation, with other regional banks pursuing similar strategies to strengthen their competitive positions. FirstSun’s previous attempt to acquire HomeStreet Bank failed, making this merger a critical component of its growth strategy. The deal is expected to enhance FirstSun’s market presence, improve its balance sheet, and provide a platform for long‑term sustainable growth.
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