Castle Creek Capital, a specialist in community banking, purchased $40 million of FirstSun Capital Bancorp common stock from legacy shareholders, giving the firm a roughly 4% ownership stake as of December 4, 2025. The transaction marks the largest institutional investment in FirstSun to date and positions Castle Creek as a key strategic partner.
The deal is part of a broader strategy to support FirstSun’s pending merger with First Foundation Inc. Castle Creek’s representative, Spencer T. Cohn, said the merger would “substantially improve the Company’s already top‑tier performance and also reduce its credit and liquidity risk profile.” The investment is expected to provide FirstSun with additional capital and governance oversight as the merger moves toward closing.
FirstSun’s board will add Cohn as a director contingent on the merger’s completion or the 2026 annual meeting, giving Castle Creek a seat to influence post‑merger integration and capital allocation. The appointment underscores the confidence that FirstSun’s leadership has in Castle Creek’s experience in scaling community banks.
FirstSun’s recent financials show a market capitalization of about $966 million and total assets of $8.5 billion as of September 30, 2025. The bank reported Q3 2025 net income of $23.2 million and EPS of $0.82, slightly below the $0.89 consensus. The miss was attributed to a modest decline in loan growth and higher provisioning for credit losses, offset by disciplined cost management that kept operating margins near 4.1%.
Analysts have maintained a “Buy” stance on FirstSun, citing the bank’s strong asset quality and the upside potential from the First Foundation merger. The new investment is expected to strengthen FirstSun’s balance sheet, improve capital ratios, and provide a platform for future growth in the regional banking space.
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