cstr-8k_20180726.htm

 

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

______________________________

 

FORM 8-K

 

CURRENT REPORT PURSUANT TO

SECTION 13 OR 15(d) OF THE

SECURITIES EXCHANGE ACT OF 1934

 

Date of Report (Date of earliest event reported): July 26, 2018

 

______________________________

 

CAPSTAR FINANCIAL HOLDINGS, INC.

(Exact name of registrant as specified in its charter)

 

 

Tennessee

 

001-37886

 

81-1527911

(State or other jurisdiction of incorporation)

 

(Commission File Number)

 

(IRS Employer Identification No.)

 

 

 

1201 Demonbreun Street, Suite 700

Nashville, Tennessee

 

 

 

37203

 

 

(Address of principal executive offices)

 

(Zip Code)

 

 

 

Registrant’s telephone number, including area code    (615) 732-6400

 

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

 

[  ]   Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

 

[  ]   Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

 

[  ]   Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

 

[  ]   Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (17 CFR §230.405) or Rule 12b-2 of the Securities Exchange Act of 1934 (17 CFR §240.12b-2). Emerging growth company [X]

 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. [X]

 

 

 

 


 


 

 

Section 2 – Financial Information

 

Item 2.02.  Results of Operations and Financial Condition.

 

On July 26, 2018, CapStar Financial Holdings, Inc. (the “Company”) issued an earnings release announcing its financial results for the second quarter ended June 30, 2018.  A copy of the earnings release is furnished as Exhibit 99.1 to this Current Report on Form 8-K (this “Report”) and is incorporated herein by reference.

 

Section 7 – Regulation FD

 

Item 7.01.  Regulation FD Disclosure.

 

The Company will conduct a conference call at 9:00 a.m. (Central Time) on July 27, 2018 to discuss its financial results for the second quarter ended June 30, 2018.  A copy of the presentation to be used for the conference call is furnished as Exhibit 99.2 to this Report and is incorporated herein by reference.

 

Section 9 – Financial Statements and Exhibits

 

Item 9.01.  Financial Statements and Exhibits.

 

Exhibit Number

 

Description

99.1

 

Earnings release issued on July 26, 2018 by CapStar Financial Holdings, Inc.

99.2

 

Presentation for conference call to be conducted by CapStar Financial Holdings, Inc. on July 27, 2018

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2


 

 

SIGNATURES

 

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 

 

CAPSTAR FINANCIAL HOLDINGS, INC.

 

 

By:

/s/ Robert B. Anderson

 

Robert B. Anderson

 

Chief Financial Officer and Chief Administrative Officer

 

 

 

Date: July 26, 2018

 

3

cstr-ex991_7.htm

Exhibit 99.1

EARNINGS RELEASE

 

CONTACT

 

Rob Anderson

Chief Financial Officer and Chief Administrative Officer

(615) 732-6470

 

 

 

 

CAPSTAR FINANCIAL HOLDINGS, INC. ANNOUNCES SECOND QUARTER 2018 RESULTS

 

NASHVILLE, TN, July 26, 2018/GlobeNewswire/ -- CapStar Financial Holdings, Inc. (“CapStar”) (NASDAQ:CSTR) reported net income of $3.5 million, or $0.27 per share on a fully diluted basis, for the three months ended June 30, 2018, compared to a net loss of $3.3 million, or ($0.26) per share on a fully diluted basis, for the three months ended June 30, 2017.  Net income for the six months ending June 30, 2018 was $6.7 million, or $0.52 per share on a fully diluted basis, compared to a net loss of $3.0 million, or ($0.24) per share on a fully diluted basis, for the six months ended June 30, 2017.

 

“Our associates followed up on our strong first quarter with a number of accomplishments during the second quarter that continue to demonstrate our focus on delivering sound, profitable growth for our shareholders,” said Claire W. Tucker, CapStar’s president and chief executive officer.  “Excluding merger-related charges, operating net income(1) was $3.8 million, or $0.29 per share on a fully diluted basis, for the three months ended June 30, 2018.”

 

Soundness

 

The allowance for loan losses represented 1.41% of total loans at June 30, 2018 compared to 1.25% at June 30, 2017.

 

 

Non-performing assets as a percentage of total loans and other real estate owned was 0.52% at June 30, 2018 compared to 0.32% at June 30, 2017.

 

 

Annualized net charge-offs (recoveries) to average loans was 0.01% for the three months ended June 30, 2018 compared to 4.38% for the same period in 2017.  

 

 

The total risk based capital ratio was 12.45% at June 30, 2018 compared to 11.51% at June 30, 2017.

 

Profitability

Operating measures exclude merger-related expenses unrelated to CapStar’s normal operations. CapStar believes these measures are useful to investors as they exclude certain costs resulting from acquisition activity and allow investors to more clearly see the economic results of the organization's operations.

 

 

Operating return on average assets ("ROAA") for the three months ended June 30, 2018 was 1.08% compared to  -0.96% for the same period in 2017.

 

 

Operating return on average tangible equity ("ROATE") for the three months ended June 30, 2018 was 10.4% compared to -9.8% for the same period in 2017.

 

(1) For a reconciliation of the non-GAAP operating measures that exclude merger-related costs unrelated to CapStar’s normal operations, see the non-GAAP financial measures section of this document.


 

 

The net interest margin (“NIM”) for the three months ended June 30, 2018 was 3.46% compared to 3.20% for the same period in 2017.  

 

 

Operating efficiency ratio for the three months ended June 30, 2018 was 67.4% compared to 62.1% for the same period in 2017.

 

“Excluding merger-related expenses, our operating results were in line with our expectations.  Delivering a 1.08% Operating ROAA in the second quarter is a step in the right direction towards improving our profitability profile,” said Rob Anderson, chief financial officer and chief administrative officer of CapStar.  

 

Growth

 

Average gross loans for the quarter ended June 30, 2018 increased 1.3%, to $1.04 billion, compared to $1.03 billion for the same period in 2017.

 

 

Average demand deposits for the quarter ended June 30, 2018 increased 3.6%, to $237.3 million, compared to $229.1 million for the same period in 2017.

 

 

Average total assets for the quarter ended June 30, 2018 increased 0.2%, to $1.40 billion, compared to $1.39 billion for the same period in 2017.

 

Merger Update

 

In addition, as announced on June 11, 2018, CapStar entered into a definitive merger agreement (the “Merger Agreement”) with Athens Bancshares Corporation (“Athens”). The Merger Agreement provides that Athens will merge with and into CapStar (the “Merger”), with CapStar as the surviving entity in the Merger and that, after the Merger, Athens’ wholly owned bank subsidiary, Athens Federal Community Bank, National Association, will merge with and into CapStar’s wholly owned bank subsidiary, CapStar Bank (the “Bank Merger,” together with the Merger, the “Mergers”), with CapStar Bank as the surviving entity in the Bank Merger.

 

The Merger Agreement was unanimously approved by the board of directors of each of CapStar and Athens. In the Merger, Athens shareholders will receive 2.864 shares of CapStar common stock for each share of Athens common stock. The all-stock transaction is valued at approximately $113.5 million based on the closing price of CapStar common stock on June 11, 2018.  

 

Athens operates 10 locations in Southeast Tennessee. As of June 30, 2018, Athens had approximately $474 million in total assets, which included approximately $338 million in total loans, and approximately $412 million in total deposits.

 

CapStar expects to complete the Mergers in the fourth quarter of 2018. However, CapStar can provide no assurances of when or if the Mergers will be completed. CapStar must first obtain the approval of CapStar shareholders and Athens shareholders for the Mergers, as well as obtain necessary regulatory approvals and satisfy certain other closing conditions.

 

“We believe the second quarter financial results reported by Athens earlier this week support our confidence in the merits of this combination and the value creation potential for all of our shareholders,” said Claire W. Tucker, CapStar’s president and chief executive officer.

 

Conference Call and Webcast Information

 

CapStar will host a conference call and webcast at 9:00 a.m. Central Time on Friday, July 27, 2018.  During the call, management will review the second quarter results and operational highlights.  Interested parties may listen to the call by dialing (844) 412-1002.  The conference ID number is 7191747.  A simultaneous webcast may be accessed on CapStar’s website at ir.capstarbank.com by clicking on “News & Events”.  An archived version of the webcast will be available in the same location shortly after the live call has ended.



 

About CapStar Financial Holdings, Inc.

 

CapStar Financial Holdings, Inc. is a bank holding company headquartered in Nashville, Tennessee, and operates primarily through its wholly owned subsidiary, CapStar Bank, a Tennessee-chartered state bank.  CapStar Bank is a commercial bank that seeks to establish and maintain comprehensive relationships with its clients by delivering customized and creative banking solutions and superior client service.  As of June 30, 2018, on a consolidated basis, CapStar had total assets of $1.4 billion, gross loans of $1.0 billion, total deposits of $1.1 billion, and shareholders’ equity of $153.1 million.  Visit www.capstarbank.com for more information.

 

Important Additional Information about the Mergers and Where to Find It

In connection with the Mergers, CapStar has filed with the SEC a registration statement on Form S-4 (File Number 333-226112) that includes a joint proxy statement of CapStar and Athens and a prospectus of CapStar, as well as other relevant documents concerning the proposed Mergers. This earnings release does not constitute an offer to sell or the solicitation of an offer to buy any securities or a solicitation of any vote or approval. SHAREHOLDERS OF CAPSTAR AND ATHENS ARE URGED TO READ THE REGISTRATION STATEMENT AND THE JOINT PROXY STATEMENT/PROSPECTUS REGARDING THE MERGERS AND ANY OTHER RELEVANT DOCUMENTS FILED WITH THE SEC, AS WELL AS ANY AMENDMENTS OR SUPPLEMENTS TO THOSE DOCUMENTS, BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION ABOUT THE MERGERS. When filed, this earnings release and other documents relating to the Mergers filed by CapStar with the SEC can be obtained free of charge from the SEC’s website at www.sec.gov. These documents also can be obtained free of charge by accessing CapStar’s website at https://ir.capstarbank.com/ under the tab “Financials & Filings.” Alternatively, these documents, when available, can be obtained free of charge from CapStar upon written request to CapStar Financials Holding, Inc., 1201 Demonbreun Street, Suite 700, Nashville, Tennessee 37203, Attention: Investor Relations or by calling (615) 732-6455.

 

Participants in the Solicitation

CapStar, Athens and certain of their respective directors, executive officers and employees may be deemed to be participants in the solicitation of proxies in respect of the proposed Mergers. Information regarding CapStar’s directors and executive officers is available in its definitive proxy statement, which was filed with the SEC on March 19, 2018, and certain of its Current Reports on Form 8-K. Information about the directors and executive officers of Athens is set forth in the joint proxy statement/prospectus when it is filed with the SEC. Other information regarding the participants in the proxy solicitation and a description of their direct and indirect interests, by security holdings or otherwise, are contained in the joint proxy statement/prospectus and other relevant materials filed with the SEC. Free copies of this document may be obtained as described in the preceding paragraph.

 

Forward-Looking Statements

 

Certain statements in this earnings release are forward-looking statements that reflect CapStar’s current views with respect to, among other things, future events, including, without limitation, the terms, timing and closing of the proposed Mergers and CapStar’s financial and operational performance. These statements are often, but not always, made through the use of words or phrases such as “may,” “should,” “could,” “predict,” “potential,” “believe,” “will likely result,” “expect,” “continue,” “will,” “anticipate,” “seek,” “aspire,” “achieve,” “estimate,” “intend,” “plan,” “project,” “projection,” “forecast,” “roadmap,” “goal,” “guidance”, “target,” “would,” and “outlook,” or the negative version of those words or other comparable words of a future or forward-looking nature. These forward-looking statements are not historical facts, and are based on current expectations, estimates and projections about CapStar’s industry, management’s beliefs and certain assumptions made by management, many of which, by their nature, are inherently uncertain and beyond CapStar’s control. The inclusion of these forward-looking statements should not be regarded as a representation by CapStar or any other person that such expectations, estimates and projections will be achieved. Accordingly, CapStar cautions you that any such forward-looking statements are not guarantees of future performance and are subject to risks, assumptions and uncertainties that are difficult to predict. Although CapStar believes that the expectations reflected in these forward-looking statements are reasonable as of the date made, actual results may prove to be materially different from the results expressed or implied by the forward-looking statements. There are or will be important factors that could cause CapStar’s actual results to differ materially from those indicated in these forward-looking statements, including, but not limited to, any factors identified in this earnings release as well as those factors that are detailed from time to time in CapStar’s periodic and current reports filed with the Securities and Exchange Commission, including those factors included in the


 

Company’s Annual Report on Form 10-K for the year ended December 31, 2017 under the headings “Item 1A. Risk Factors” and “Cautionary Note Regarding Forward Looking Statements” and in the Company’s Quarterly Reports on Form 10-Q and Current Reports on Form 8-K.  If one or more events related to these or other risks or uncertainties materialize, or if CapStar’s underlying assumptions prove to be incorrect, actual results may differ materially from our forward-looking statements. Accordingly, you should not place undue reliance on any such forward-looking statements. Any forward-looking statement speaks only as of the date of this earnings release, and CapStar does not undertake any obligation to publicly update or review any forward-looking statement, whether as a result of new information, future developments or otherwise, except as required by law. New risks and uncertainties may emerge from time to time, and it is not possible for CapStar to predict their occurrence or how they will affect CapStar.

 

Non-GAAP Disclaimer

 

This earnings release includes the following financial measures that were prepared other than in accordance with generally accepted accounting principles in the United States (“non-GAAP financial measure”): operating net income, operating diluted net income per share, operating return on average assets, operating return on average tangible equity, tangible book value per share and operating efficiency ratio. These non-GAAP financial measures (i) provide useful information to management and investors that is supplementary to CapStar’s financial condition, results of operations and cash flows computed in accordance with GAAP, (ii) enable a more complete understanding of factors and trends affecting CapStar’s business, and (iii) allow investors to evaluate CapStar’s performance in a manner similar to management, the financial services industry, bank stock analysts and bank regulators; however, CapStar acknowledges that these non-GAAP financial measures have a number of limitations.  As such, you should not view these non-GAAP financial measures as a substitute for results determined in accordance with GAAP, and they are not necessarily comparable to non-GAAP financial measures that other companies use.  See below for a reconciliation of these non-GAAP financial measures to the most directly comparable GAAP financial measure.  


 

CAPSTAR FINANCIAL HOLDINGS, INC. AND SUBSIDIARY

Consolidated Statements of Income (unaudited) (dollars in thousands, except share data)

Second Quarter 2018 Earnings Release

 

Three Months Ended

 

 

Six Months Ended

 

 

 

June 30,

 

 

June 30,

 

 

 

2018

 

 

2017

 

 

2018

 

 

2017

 

Interest income:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loans, including fees

 

$

13,796

 

 

$

11,373

 

 

$

26,030

 

 

$

21,840

 

Securities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Taxable

 

 

939

 

 

 

983

 

 

 

1,815

 

 

 

1,987

 

Tax-exempt

 

 

261

 

 

 

317

 

 

 

546

 

 

 

642

 

Federal funds sold

 

 

19

 

 

 

16

 

 

 

39

 

 

 

18

 

Restricted equity securities

 

 

128

 

 

 

86

 

 

 

257

 

 

 

163

 

Interest-bearing deposits in financial institutions

 

 

211

 

 

 

115

 

 

 

411

 

 

 

219

 

Total interest income

 

 

15,354

 

 

 

12,890

 

 

 

29,098

 

 

 

24,869

 

Interest expense:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest-bearing deposits

 

 

892

 

 

 

586

 

 

 

1,646

 

 

 

1,204

 

Savings and money market accounts

 

 

1,413

 

 

 

773

 

 

 

2,418

 

 

 

1,587

 

Time deposits

 

 

834

 

 

 

574

 

 

 

1,483

 

 

 

1,046

 

Federal funds purchased

 

 

1

 

 

 

7

 

 

 

1

 

 

 

11

 

Federal Home Loan Bank advances

 

 

627

 

 

 

379

 

 

 

1,117

 

 

 

519

 

Total interest expense

 

 

3,767

 

 

 

2,319

 

 

 

6,665

 

 

 

4,367

 

Net interest income

 

 

11,587

 

 

 

10,571

 

 

 

22,433

 

 

 

20,502

 

Provision for loan losses

 

 

169

 

 

 

9,690

 

 

 

846

 

 

 

13,094

 

Net interest income after provision for loan losses

 

 

11,418

 

 

 

881

 

 

 

21,587

 

 

 

7,408

 

Noninterest income:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Treasury management and other deposit service charges

 

 

427

 

 

 

342

 

 

 

829

 

 

 

670

 

Loan commitment fees

 

 

185

 

 

 

187

 

 

 

572

 

 

 

423

 

Net gain on sale of securities

 

 

3

 

 

 

40

 

 

 

3

 

 

 

34

 

Tri-Net fees

 

 

325

 

 

 

297

 

 

 

853

 

 

 

382

 

Mortgage banking income

 

 

1,383

 

 

 

1,370

 

 

 

2,695

 

 

 

2,587

 

Other noninterest income

 

 

442

 

 

 

430

 

 

 

902

 

 

 

703

 

Total noninterest income

 

 

2,765

 

 

 

2,666

 

 

 

5,854

 

 

 

4,799

 

Noninterest expense:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Salaries and employee benefits

 

 

6,340

 

 

 

4,784

 

 

 

12,598

 

 

 

9,870

 

Data processing and software

 

 

810

 

 

 

711

 

 

 

1,608

 

 

 

1,331

 

Professional fees

 

 

344

 

 

 

350

 

 

 

819

 

 

 

714

 

Occupancy

 

 

535

 

 

 

539

 

 

 

1,056

 

 

 

987

 

Equipment

 

 

602

 

 

 

544

 

 

 

1,141

 

 

 

1,040

 

Regulatory fees

 

 

233

 

 

 

301

 

 

 

436

 

 

 

608

 

Merger related expenses

 

 

335

 

 

 

 

 

 

335

 

 

 

 

Other operating

 

 

806

 

 

 

988

 

 

 

1,593

 

 

 

2,042

 

Total noninterest expense

 

 

10,005

 

 

 

8,217

 

 

 

19,586

 

 

 

16,592

 

Income (loss) before income taxes

 

 

4,178

 

 

 

(4,670

)

 

 

7,855

 

 

 

(4,385

)

Income tax (benefit) expense

 

 

665

 

 

 

(1,328

)

 

 

1,148

 

 

 

(1,375

)

Net income (loss)

 

$

3,513

 

 

$

(3,342

)

 

$

6,707

 

 

$

(3,010

)

Per share information:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic net income (loss) per share of common stock

 

$

0.30

 

 

$

(0.30

)

 

$

0.57

 

 

$

(0.27

)

Diluted net income (loss) per share of common stock

 

$

0.27

 

 

$

(0.26

)

 

$

0.52

 

 

$

(0.24

)

Weighted average shares outstanding:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

 

11,845,822

 

 

 

11,226,216

 

 

 

11,755,535

 

 

 

11,218,624

 

Diluted

 

 

13,067,223

 

 

 

12,740,104

 

 

 

13,021,744

 

 

 

12,761,989

 

 

This information is preliminary and based on company data available at the time of the presentation.


 

CAPSTAR FINANCIAL HOLDINGS, INC. AND SUBSIDIARY

Selected Quarterly Financial Data (unaudited) (dollars in thousands, except share data)

Second Quarter 2018 Earnings Release

 

Five Quarter Comparison

 

 

 

6/30/18

 

 

3/31/18

 

 

12/31/17

 

 

9/30/17

 

 

6/30/17

 

Income Statement Data:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net interest income

 

$

11,587

 

 

$

10,846

 

 

$

10,518

 

 

$

10,843

 

 

$

10,571

 

Provision for loan losses

 

 

169

 

 

 

678

 

 

 

(30

)

 

 

(195

)

 

 

9,690

 

Net interest income after provision for loan losses

 

 

11,418

 

 

 

10,168

 

 

 

10,548

 

 

 

11,038

 

 

 

881

 

Treasury management and other deposit service charges

 

 

427

 

 

 

402

 

 

 

419

 

 

 

427

 

 

 

342

 

Loan commitment fees

 

 

185

 

 

 

387

 

 

 

124

 

 

 

224

 

 

 

188

 

Net gain (loss) on sale of securities

 

 

3

 

 

 

 

 

 

(108

)

 

 

9

 

 

 

40

 

Tri-Net fees

 

 

325

 

 

 

528

 

 

 

254

 

 

 

367

 

 

 

297

 

Mortgage banking income

 

 

1,383

 

 

 

1,313

 

 

 

1,621

 

 

 

2,030

 

 

 

1,370

 

Other noninterest income

 

 

442

 

 

 

458

 

 

 

426

 

 

 

315

 

 

 

429

 

Total noninterest income

 

 

2,765

 

 

 

3,088

 

 

 

2,736

 

 

 

3,372

 

 

 

2,666

 

Salaries and employee benefits

 

 

6,340

 

 

 

6,257

 

 

 

5,411

 

 

 

5,119

 

 

 

4,784

 

Data processing and software

 

 

810

 

 

 

798

 

 

 

746

 

 

 

709

 

 

 

711

 

Professional fees

 

 

344

 

 

 

474

 

 

 

473

 

 

 

336

 

 

 

350

 

Occupancy

 

 

535

 

 

 

521

 

 

 

507

 

 

 

531

 

 

 

539

 

Equipment

 

 

602

 

 

 

539

 

 

 

467

 

 

 

564

 

 

 

544

 

Regulatory fees

 

 

233

 

 

 

203

 

 

 

234

 

 

 

270

 

 

 

301

 

Merger related expenses

 

 

335

 

 

 

 

 

 

 

 

 

 

 

 

 

Other operating

 

 

806

 

 

 

788

 

 

 

861

 

 

 

945

 

 

 

988

 

Total noninterest expense

 

 

10,005

 

 

 

9,580

 

 

 

8,699

 

 

 

8,474

 

 

 

8,217

 

Net income (loss) before income tax expense

 

 

4,178

 

 

 

3,676

 

 

 

4,585

 

 

 

5,936

 

 

 

(4,670

)

Income tax (benefit) expense

 

 

665

 

 

 

483

 

 

 

4,494

 

 

 

1,516

 

 

 

(1,328

)

Net income (loss)

 

$

3,513

 

 

$

3,193

 

 

$

91

 

 

$

4,420

 

 

$

(3,342

)

Weighted average shares - basic

 

 

11,845,822

 

 

 

11,664,467

 

 

 

11,403,689

 

 

 

11,279,364

 

 

 

11,226,216

 

Weighted average shares - diluted

 

 

13,067,223

 

 

 

12,975,981

 

 

 

12,938,288

 

 

 

12,750,423

 

 

 

12,740,104

 

Net income (loss) per share, basic

 

$

0.30

 

 

$

0.27

 

 

$

0.01

 

 

$

0.39

 

 

$

(0.30

)

Net income (loss) per share, diluted

 

 

0.27

 

 

 

0.25

 

 

 

0.01

 

 

 

0.35

 

 

 

(0.26

)

Balance Sheet Data (at period end):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

58,222

 

 

$

51,125

 

 

$

82,797

 

 

$

69,789

 

 

$

48,093

 

Securities available-for-sale

 

 

183,364

 

 

 

189,580

 

 

 

192,621

 

 

 

146,600

 

 

 

155,663

 

Securities held-to-maturity

 

 

3,746

 

 

 

3,752

 

 

 

3,759

 

 

 

45,635

 

 

 

46,458

 

Loans held for sale

 

 

65,320

 

 

 

62,286

 

 

 

74,093

 

 

 

53,225

 

 

 

73,573

 

Total loans

 

 

1,046,525

 

 

 

1,031,821

 

 

 

947,537

 

 

 

974,530

 

 

 

996,617

 

Allowance for loan losses

 

 

(14,705

)

 

 

(14,563

)

 

 

(13,721

)

 

 

(14,122

)

 

 

(12,454

)

Total assets

 

 

1,401,181

 

 

 

1,382,745

 

 

 

1,344,429

 

 

 

1,338,559

 

 

 

1,371,626

 

Non-interest-bearing deposits

 

 

223,579

 

 

 

258,161

 

 

 

301,742

 

 

 

250,007

 

 

 

231,169

 

Interest-bearing deposits

 

 

921,435

 

 

 

869,393

 

 

 

818,124

 

 

 

841,488

 

 

 

889,816

 

Federal Home Loan Bank advances

 

 

95,000

 

 

 

100,000

 

 

 

70,000

 

 

 

95,000

 

 

 

105,000

 

Total liabilities

 

 

1,248,035

 

 

 

1,234,052

 

 

 

1,197,483

 

 

 

1,194,355

 

 

 

1,233,596

 

Shareholders' equity

 

$

153,146

 

 

$

148,693

 

 

$

146,946

 

 

$

144,204

 

 

$

138,031

 

Total shares of common stock outstanding

 

 

11,931,131

 

 

 

11,773,358

 

 

 

11,582,026

 

 

 

11,346,498

 

 

 

11,235,255

 

Total shares of preferred stock outstanding

 

 

878,049

 

 

 

878,049

 

 

 

878,049

 

 

 

878,049

 

 

 

878,049

 

Book value per share of common stock

 

$

12.08

 

 

$

11.87

 

 

$

11.91

 

 

$

11.92

 

 

$

11.48

 

Tangible book value per share of common stock*

 

 

11.56

 

 

 

11.34

 

 

 

11.37

 

 

 

11.36

 

 

 

10.93

 

Market value per share of common stock

 

$

18.53

 

 

$

18.83

 

 

$

20.77

 

 

$

19.58

 

 

$

17.74

 

Capital ratios:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total risk based capital

 

 

12.45

%

 

 

12.22

%

 

 

12.52

%

 

 

12.41

%

 

 

11.51

%

Tier 1 risk based capital

 

 

11.33

%

 

 

11.11

%

 

 

11.41

%

 

 

11.28

%

 

 

10.54

%

Common equity tier 1 capital

 

 

10.66

%

 

 

10.43

%

 

 

10.70

%

 

 

10.58

%

 

 

9.86

%

Leverage

 

 

10.87

%

 

 

10.91

%

 

 

10.77

%

 

 

10.36

%

 

 

9.77

%

_____________________

*This metric is a non-GAAP financial measure.  See below for reconciliation to the most directly comparable GAAP financial measure.

 

This information is preliminary and based on company data available at the time of the presentation.

 


 

CAPSTAR FINANCIAL HOLDINGS, INC. AND SUBSIDIARY

Selected Quarterly Financial Data (unaudited) (dollars in thousands, except share data)

Second Quarter 2018 Earnings Release

 

 

Five Quarter Comparison

 

 

 

6/30/18

 

 

3/31/18

 

 

12/31/17

 

 

9/30/17

 

 

6/30/17

 

Average Balance Sheet Data:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

63,064

 

 

$

60,965

 

 

$

64,850

 

 

$

59,352

 

 

$

62,002

 

Investment securities

 

 

197,933

 

 

 

203,274

 

 

 

202,818

 

 

 

207,926

 

 

 

227,431

 

Loans held for sale

 

 

58,297

 

 

 

68,084

 

 

 

66,311

 

 

 

67,886

 

 

 

34,690

 

Loans

 

 

1,041,835

 

 

 

983,496

 

 

 

956,441

 

 

 

991,238

 

 

 

1,028,968

 

Assets

 

 

1,396,359

 

 

 

1,351,129

 

 

 

1,329,621

 

 

 

1,367,993

 

 

 

1,393,331

 

Interest bearing deposits

 

 

901,076

 

 

 

840,871

 

 

 

827,732

 

 

 

857,344

 

 

 

882,721

 

Deposits

 

 

1,138,400

 

 

 

1,111,182

 

 

 

1,081,380

 

 

 

1,094,500

 

 

 

1,111,833

 

Federal Home Loan Bank advances

 

 

99,121

 

 

 

84,533

 

 

 

92,554

 

 

 

123,315

 

 

 

128,901

 

Liabilities

 

 

1,244,824

 

 

 

1,202,854

 

 

 

1,181,954

 

 

 

1,226,438

 

 

 

1,250,544

 

Shareholders' equity

 

 

151,535

 

 

 

148,276

 

 

 

147,667

 

 

 

141,556

 

 

 

142,787

 

Performance Ratios:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Annualized return on average assets

 

 

1.01

%

 

 

0.96

%

 

 

0.03

%

 

 

1.28

%

 

 

-0.96

%

Annualized return on average equity

 

 

9.30

%

 

 

8.74

%

 

 

0.25

%

 

 

12.38

%

 

 

-9.39

%

Net interest margin (1)

 

 

3.46

%

 

 

3.39

%

 

 

3.31

%

 

 

3.31

%

 

 

3.20

%

Annualized Non-interest income to average assets

 

 

0.79

%

 

 

0.93

%

 

 

0.82

%

 

 

0.98

%

 

 

0.77

%

Efficiency ratio

 

 

69.7

%

 

 

68.8

%

 

 

65.6

%

 

 

59.6

%

 

 

62.1

%

Loans by Type (at period end):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial and industrial

 

$

386,065

 

 

$

408,353

 

 

$

373,248

 

 

$

394,600

 

 

$

406,636

 

Commercial real estate - owner occupied

 

 

121,475

 

 

 

131,741

 

 

 

101,132

 

 

 

103,183

 

 

 

97,634

 

Commercial real estate - non-owner occupied

 

 

286,769

 

 

 

258,016

 

 

 

249,489

 

 

 

263,594

 

 

 

288,124

 

Construction and development

 

 

96,580

 

 

 

91,953

 

 

 

82,586

 

 

 

79,951

 

 

 

62,152

 

Consumer real estate

 

 

109,915

 

 

 

104,224

 

 

 

102,581

 

 

 

100,811

 

 

 

99,750

 

Consumer

 

 

9,671

 

 

 

9,524

 

 

 

6,862

 

 

 

6,289

 

 

 

4,096

 

Other

 

 

36,428

 

 

 

28,750

 

 

 

31,984

 

 

 

26,461

 

 

 

38,784

 

Asset Quality Data: