FIRSTSUN CAPITAL BANCORPFSUN
FIRSTSUN CAPITAL BANCORP Income Taxes Disclosure
Income Taxes
The components of income tax expense were as follows for the year ended December 31, 2025:
| 2025 | |||||
| Federal: | |||||
| Current | $ | 18,780 | |||
| Deferred | 2,291 | ||||
| Federal income tax expense | 21,071 | ||||
| State: | |||||
| Current | 3,421 | ||||
| Deferred | 468 | ||||
| State income tax expense | 3,889 | ||||
| Total income tax expense | $ | 24,960 | |||
For the year ended December 31, 2025, we have no current or deferred foreign income tax expense.
The provision for income tax is summarized as follows for the years ended December 31,:
| 2024 | 2023 | ||||||||||
| Current | $ | 16,137 | $ | 24,938 | |||||||
| Deferred | 3,347 | 3,012 | |||||||||
| Federal income tax expense | $ | 19,484 | $ | 27,950 | |||||||
The following tables present a reconciliation of the statutory federal income tax rate to the effective income tax rate for the years ended December 31,:
| 2025 | |||||||||||
| Amount | Percent | ||||||||||
| U.S. federal statutory income tax | $ | 25,808 | 21.0 | % | |||||||
State and local income taxes, net of federal benefits1 | 3,170 | 2.6 | % | ||||||||
| Tax credits: | |||||||||||
Proportional Amortization of LIHTC Credits2 | 1,072 | 0.9 | % | ||||||||
| Nontaxable or nondeductible items: | |||||||||||
| Tax Exempt Interest | (3,867) | (3.1) | % | ||||||||
| Share-based payment awards | 133 | 0.1 | % | ||||||||
| Non-deductible professional fees | 427 | 0.3 | % | ||||||||
| Other adjustments: | |||||||||||
Permanent RTP3 | (1,208) | (1.0) | % | ||||||||
| Other | (575) | (0.5) | % | ||||||||
| Income tax expense | $ | 24,960 | 20.3 | % | |||||||
1 The majority of state and local income taxes are from Colorado, Illinois, Kansas, Texas and Arizona. 2 LIHTC tax credits are net of amortization and other income tax benefits. 3 2024 Provision to Return adjustment. | |||||||||||
| 2024 | 2023 | ||||||||||||||||||||||
| Amount | Percent | Amount | Percent | ||||||||||||||||||||
| Taxes at statutory federal income tax rate | $ | 19,974 | 21.0 | % | $ | 27,611 | 21.0 | % | |||||||||||||||
| Tax effect from: | |||||||||||||||||||||||
| State income taxes, net of federal benefits | 4,012 | 4.2 | % | 3,718 | 2.9 | % | |||||||||||||||||
| Tax exempt income | (3,827) | (4.0) | % | (4,017) | (3.1) | % | |||||||||||||||||
| Net increase in cash surrender value of BOLI | (588) | (0.6) | % | (405) | (0.3) | % | |||||||||||||||||
| Federal tax credits | (380) | (0.4) | % | — | — | % | |||||||||||||||||
| Executive compensation | 107 | 0.1 | % | 301 | 0.2 | % | |||||||||||||||||
| Other | 186 | 0.2 | % | 742 | 0.6 | % | |||||||||||||||||
| Income tax provision | $ | 19,484 | 20.5 | % | $ | 27,950 | 21.3 | % | |||||||||||||||
The following table presents income taxes paid for the year ended December 31, 2025:
| Federal | $ | 12,691 | |||
| State: | |||||
| Texas | 640 | ||||
| Kansas | 416 | ||||
| California | 332 | ||||
| Arizona | 227 | ||||
| Other States | 1,401 | ||||
| Federal and state income taxes paid | $ | 15,707 | |||
The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and deferred tax liabilities were as follows at December 31,:
| 2025 | 2024 | ||||||||||
| Deferred tax assets: | |||||||||||
| Acquired federal and state net operating loss | $ | 18,421 | $ | 20,620 | |||||||
| Allowance for credit losses | 19,907 | 20,794 | |||||||||
| Unrealized loss on securities | 8,396 | 12,203 | |||||||||
| Deferred compensation | 4,324 | 3,679 | |||||||||
| Fair value adjustments on securities | 2,185 | 2,449 | |||||||||
| Deferred loan fees | 2,011 | 877 | |||||||||
| Accrued expenses | 1,534 | 1,615 | |||||||||
| Share-based compensation | 1,143 | 1,374 | |||||||||
| Fair value adjustments on loans | 759 | 1,073 | |||||||||
| Lease liability | 420 | 448 | |||||||||
| Unfunded commitment liability | 283 | — | |||||||||
| Fair value adjustments on deposits | — | 19 | |||||||||
| Other | 655 | 1,682 | |||||||||
| Total deferred tax assets | 60,038 | 66,833 | |||||||||
| Deferred tax liabilities: | |||||||||||
| Mortgage servicing rights | 20,196 | 19,623 | |||||||||
| Prepaid expenses | 1,601 | 1,661 | |||||||||
| Fair value adjustments on intangible assets | 1,562 | 2,098 | |||||||||
| Premises and equipment | 1,002 | 978 | |||||||||
| Fair value adjustments on debt | 433 | 516 | |||||||||
| FHLB stock | 100 | 100 | |||||||||
| Partnership investment | — | 485 | |||||||||
| Other | 271 | 177 | |||||||||
| Total deferred tax liabilities | 25,165 | 25,638 | |||||||||
| Total deferred tax assets, net | $ | 34,873 | $ | 41,195 | |||||||
As of December 31, 2025, we had net operating loss carryforwards of approximately $86,648, which begin to expire between 2030 and 2037, and operating loss carryforwards generated after 2017 of $341 that do not expire. As of December 31, 2025, we had net operating loss carryforwards for state tax purposes of approximately $142, which will begin to expire in 2033. Utilization of the net operating losses may be subject to a substantial annual limitation due to the ownership change limitations set forth in Internal Revenue Code Section 382 and similar state provisions. Such an annual limitation could result in the expiration of the net operating loss carryforwards before utilization. We believe that all of the net operating loss carryforwards will be used prior to expiration.
We evaluate uncertain tax positions at the end of each reporting period. We may recognize the tax benefit from an uncertain tax position only if it is more likely than not that the tax position will be sustained on examination by the taxing authorities, based on the technical merits of the position. The tax benefit recognized in the financial statements from any such position is measured based on the largest benefit that has a greater than fifty percent likelihood of being realized upon ultimate settlement. As of December 31, 2025 and 2024, we concluded there were no material uncertain tax positions.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Mar 6, 2026 | Showing above |
| 2024 | Mar 7, 2025 | |
| 2023 | Mar 7, 2024 | |
| 2022 | Mar 16, 2023 | |
About Income Taxes Disclosures
The income tax disclosure reveals how much a company actually pays in taxes versus what the statutory rate would predict. Analysts focus on the effective tax rate (ETR) reconciliation, which breaks down every item driving the gap between the 21% federal rate and the company's reported ETR — including R&D credits, foreign rate differentials, and state taxes. Deferred tax assets (DTAs) and their valuation allowances signal management's confidence in future profitability: a rising allowance suggests the company doubts it can use accumulated tax benefits. Uncertain tax benefit (UTB) reserves quantify exposure to IRS challenges on aggressive positions.
Key signals to watch: sudden ETR drops without clear operational reasons, large increases in valuation allowances, growing UTB balances, and significant unremitted foreign earnings. Post-TCJA, pay attention to GILTI and BEAT provisions that affect multinational tax structures. Compare the cash taxes paid (from the cash flow statement) against the income tax provision to gauge earnings quality.