FirstSun Hit by Loan Fraud, Forecasts Sharp Surge in Second-Quarter Charge-Offs

FirstSun Capital faces fraud losses of up to $22 million after a commercial lending customer falsified accounts receivable and other financial data. The case highlights the growing risk of borrower fraud confronting banks’ credit assessment and risk controls, raising concerns about lending safeguards and internal controls across the financial sector.

Hit by the fraud and a separate bad loan, Denver-based FirstSun Capital expects net charge-offs to surge to $43 million in the second quarter of 2026. The steep increase will directly erode its quarterly earnings and formally places FirstSun among the banks that have suffered substantial losses from borrower fraud.