First Foundation Soars on $785M All-Stock Merger with FirstSun Capital
Deal values FFWM at a significant premium, aiming to forge a $17 billion regional banking powerhouse across high-growth markets.
Shares of First Foundation Inc. (NYSE: FFWM) jumped in trading Monday following the announcement that it will be acquired by FirstSun Capital Bancorp in an all-stock transaction valued at approximately $785 million. The deal aims to create a formidable regional bank with roughly $17 billion in assets, signaling ongoing consolidation in the U.S. banking sector.
The merger agreement, unveiled early Monday, sent First Foundation's stock up 4.7% to $5.81 in after-hours trading. The terms of the deal value First Foundation at approximately $6.50 per share, representing a substantial premium over its closing price of $5.55 on Friday. This move combines two significant players with complementary footprints across Texas, Colorado, Arizona, California, and Hawaii.
Under the definitive agreement, First Foundation stockholders will receive 0.16083 shares of FirstSun common stock for each share of First Foundation stock they own. Upon completion of the transaction, FirstSun shareholders are expected to own approximately 59.5% of the combined company, with First Foundation shareholders holding the remaining 40.5%.
Reflecting typical market dynamics in all-stock acquisitions, shares of the acquirer, FirstSun Capital Bancorp, dipped 1.9% to $39.45. The decline reflects the cost of the premium paid and the issuance of new shares to fund the purchase.
The strategic rationale behind the merger centers on achieving greater scale, enhancing earnings power, and expanding market presence. The combined entity will operate under the FirstSun and Sunflower Bank brands, boasting approximately $13.4 billion in loans and $14.5 billion in deposits across its pro forma footprint.
"This merger represents an exciting opportunity to strengthen our platform for long-term, sustainable growth, expand our earnings power, and drive greater value for our stockholders," said Mollie Hale Carter, Executive Chairman of FirstSun. "We are thrilled to welcome the customers and team members of First Foundation to the FirstSun and Sunflower Bank family," she added in a statement.
The new leadership structure is designed to integrate senior talent from both organizations. Mollie Hale Carter will continue as Executive Chairman of the combined company, with FirstSun's Neal Arnold remaining as CEO and President. Tom Shafer, the current CEO of First Foundation, will assume the role of Vice Chairman. The new board of directors will include five members from First Foundation.
"This merger strengthens our ability to deliver exceptional financial services and expands our reach across key markets," commented Tom Shafer, highlighting the benefits of combining forces.
The transaction is the latest in a series of mergers within the regional banking industry, as mid-sized institutions seek to build scale to compete more effectively with money-center giants and navigate a complex regulatory environment. The increased asset base provides greater lending capacity and the ability to invest in technology and services.
The merger is subject to customary closing conditions, including approvals from regulators and shareholders of both companies. The transaction is anticipated to close in the second quarter of 2026.