FirstSun Capital Bancorp to Acquire First Foundation Inc. in $785M All-Stock Merger
FirstSun Capital Bancorp will acquire First Foundation Inc. in a $785 million all-stock merger that will create a $17 billion regional banking franchise and accelerate FirstSun’s expansion into Southern California.
First Foundation shareholders will receive 0.16083 shares of FirstSun common stock for each First Foundation share owned, and warrant holders will receive $17.5 million in cash consideration. The deal values the transaction based on FirstSun’s closing price as of October 24, 2025, and is expected to close in the second quarter of 2026. Following the merger, FirstSun stockholders will own approximately 59.5% of the combined company, while First Foundation stockholders will own 40.5%.
The combined organization is projected to deliver more than 30% accretion to FirstSun’s 2027 estimated earnings per share, with a 3.3-year tangible book value dilution earnback period. By 2027, the bank expects to manage $6.8 billion in assets under management, achieve a 1.45% return on average assets, and generate a 13.3% return on average tangible common equity.
“This merger represents an exciting opportunity to strengthen our platform for long-term, sustainable growth and drive greater value for stockholders,” said Mollie Hale Carter, who will continue as Executive Chair. Neal Arnold will remain CEO and President, while Tom Shafer, current CEO of First Foundation, will become Vice Chair.
Stephens Inc. is serving as exclusive financial advisor and rendered a fairness opinion to FirstSun’s board of directors. Nelson Mullins Riley & Scarborough LLP served as legal counsel to FirstSun.
Keefe Bruyette and Woods, A Stifel Company, is serving as lead advisor to First Foundation and provided a fairness opinion to First Foundation’s board of directors. Jefferies LLC is serving as financial advisor to First Foundation and rendered a fairness opinion to First Foundation’s board of directors. Alston & Bird LLP served as legal counsel to First Foundation.