KBRA Assigns Ratings to FirstSun Capital Bancorp

NEW YORK--()--Kroll Bond Rating Agency (KBRA) assigns a senior unsecured debt rating of BBB, subordinated debt rating of BBB-, and short-term debt rating of K3 for Denver, Colorado-based FirstSun Capital Bancorp (“FirstSun”). In addition, KBRA assigns deposit and senior unsecured debt ratings of BBB+, a subordinated debt rating of BBB, and short-term deposit and debt ratings of K2 for the subsidiary bank, Sunflower Bank, N.A. (“Sunflower”). The Outlook for all long-term ratings is Stable.

Ratings are underpinned by a lower-than-average risk profile embodied in the legacy Sunflower credit culture. The bank has comparatively smaller proportions of investor CRE and construction exposure and a more diverse loan portfolio compared with many like-sized peers. Financial stability benefits from a low-cost core deposit franchise and a relatively favorable level of loans to core deposits. FirstSun’s management is conservative with considerable experience and expertise backed by private shareholders with a long-term view. The mortgage business, though relatively volatile from quarter to quarter, provides revenue diversification. This contribution has increased recently in tandem with low interest rates combined with efficiency initiatives. After the transformative merger with Strategic Growth Bancorp in 2017, FirstSun’s profitability has been well below average. Management has made notable progress executing its post-merger strategy and attaining operating efficiencies, but sufficient core profitability is just beginning to emerge.

To view the rating report, click here.

The ratings are based on KBRA’s Bank and Bank Holding Company Global Rating Methodology published on October 16, 2019.

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About KBRA and KBRA Europe

KBRA is a full-service credit rating agency registered with the U.S. Securities and Exchange Commission as an NRSRO. In addition, KBRA is designated as a designated rating organization by the Ontario Securities Commission for issuers of asset-backed securities to file a short form prospectus or shelf prospectus. KBRA is also recognized by the National Association of Insurance Commissioners as a Credit Rating Provider and is a certified Credit Rating Agency (CRA) by the European Securities and Markets Authority (ESMA). Kroll Bond Rating Agency Europe Limited is registered with ESMA as a CRA.

Contacts

Analytical:
Joe Scott, Managing Director
(646) 731-2438
jscott@kbra.com

Thomas Curley, Associate
(301) 969-3245
tcurley@kbra.com

Business Development:
Dave DeMilt, Managing Director
(646) 731-3335
ddemilt@kbra.com

Contacts

Analytical:
Joe Scott, Managing Director
(646) 731-2438
jscott@kbra.com

Thomas Curley, Associate
(301) 969-3245
tcurley@kbra.com

Business Development:
Dave DeMilt, Managing Director
(646) 731-3335
ddemilt@kbra.com