cstr-8k_20190124.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): January 24, 2019

 

______________________________

 

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 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter). 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 January 24, 2019, CapStar Financial Holdings, Inc. (the “Company”) issued an earnings release announcing its financial results for the fourth quarter ended December 31, 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.

 

The Company will conduct a conference call at 9:00 a.m. (Central Time) on January 25, 2019 to discuss its financial results for the fourth quarter ended December 31, 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 7 – Regulation FD

 

Item 7.01.  Regulation FD Disclosure.

 

The disclosure set forth in Item 2.02 of this Report 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 January 24, 2019 by CapStar Financial Holdings, Inc.

99.2

 

Presentation for conference call to be conducted by CapStar Financial Holdings, Inc. on January 25, 2019.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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: January 24, 2019

 

3

cstr-ex991_6.htm

Exhibit 99.1

EARNINGS RELEASE

 

CONTACT

 

Rob Anderson

Chief Financial Officer and Chief Administrative Officer

(615) 732-6470

 

 

 

 

 

CapStar Reports Fully Diluted EPS of ($0.04) and Fully Diluted Operating EPS of $0.33 for 4Q 2018

CapStar Reports Record Fully Diluted Operating EPS of $1.19 for 2018

 

NASHVILLE, TN, January 24, 2018/GlobeNewswire/ -- CapStar Financial Holdings, Inc. (“CapStar”) (NASDAQ:CSTR) reported a net loss of ($0.7) million, or ($0.04) per share on a fully diluted basis, for the three months ended December 31, 2018, compared to net income of $0.0 million, or $0.01 per share on a fully diluted basis, for the three months ended December 31, 2017.  Operating(1) net income was $6.2 million, or $0.33 per share on a fully diluted basis, for the three months ended December 31, 2018, compared to $3.7 million, or $0.28, for the three months ended December 31, 2017.  

 

Net income for the twelve months ended December 31, 2018 was $9.7 million, or $0.67 per share on a fully diluted basis, compared to net income of $1.5 million, or $0.12 per share on a fully diluted basis, for the twelve months ended December 31, 2017. Operating net income was $17.2 million, or $1.19 per share on a fully diluted basis, for the twelve months ended December 31, 2018, compared to $5.1 million, or $0.40, for the twelve months ended December 31, 2017.  

 

“From a performance standpoint, 2018 was a good year for CapStar,” said Claire W. Tucker, CapStar’s president and chief executive officer.  “We initiated a quarterly dividend for our shareholders, were named a C&I leader in U.S. Small Business Banking by Greenwich Associates, and closed our acquisition of Athens Bancshares,” Ms. Tucker continued.  “I am very proud of our team’s efforts under very difficult circumstances.  The sudden passing of CapStar Bank president Dan W. Hogan was a tragic loss for everyone who knew him, and he will be missed tremendously. However, the strength of the CapStar culture that Dan helped build and exemplified so well stood out in each of our associates when it mattered most. Our focus on caring for our customers and each other never wavered.”

 

Soundness

 

The current reserve of $12.1MM plus the $5.2MM fair value mark on acquired loans would equate to a 1.21% reserve/loans.

 

 

Current Criticized and Classified loans are at a low level, totaling 1.71% at December 31, 2018 compared to 2.64% at December 31, 2017.

 

 

Non-performing assets as a percentage of total loans and other real estate owned was 0.21% at December 31, 2018 compared to 0.28% at December 31, 2017.

 

 

Annualized net charge-offs to average loans was 1.27% for the three months ended December 31, 2018 compared to 0.15% for the same period in 2017.

 

(1) For a discussion and reconciliation of the Non-GAAP operating measures that exclude merger-related costs unrelated to CapStar’s normal operations, see the section titled “Non-GAAP Disclaimer” and the Non-GAAP financial measures section of the financial statements.


 

 

Annualized net charge-offs for the year ended December 31, 2018 totaled 0.39%, compared to 1.09% for the year ended December 31, 2017.

 

The total risk based capital ratio was 12.84% at December 31, 2018 compared to 12.52% at December 31, 2017.

 

“CapStar’s strategy remains one of sound, profitable growth.  While charge-offs are never easy to accept, our current criticized loans are at historic low points and we feel very good about our asset quality going forward,” Ms. Tucker continued.    

 

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 financial results of the CapStar’s operations.

 

 

Operating return on average assets ("ROAA") for the three months ended December 31, 2018 was 1.27% compared to 1.09% for the same period in 2017.

 

 

Operating return on average tangible equity ("ROATE") for the three months ended December 31, 2018 was 12.36% compared to 10.25% for the same period in 2017.

 

 

The net interest margin (“NIM”) for the three months ended December 31, 2018 was 3.89% compared to 3.30% for the same period in 2017.  

 

 

The operating efficiency ratio for the three months ended December 31, 2018 was 61.83% compared to 65.63% for the same period in 2017.

 

“Our profitability profile improved significantly with the closing of the Athens acquisition on October 1, 2018,” said Rob Anderson, chief financial officer and chief administrative officer of CapStar.  “While competition for quality loans and core deposits remains fierce, we will stick to our discipline of sound, profitable, growth.”

 

Growth

 

Average gross loans for the quarter ended December 31, 2018 increased 50.5% to $1.44 billion, compared to $956.4 million for the same period in 2017.

 

o

Excluding the impact of acquired loans, legacy CapStar loans increased 13.9% compared to the same period in 2017.

 

 

Average deposits for the quarter ended December 31, 2018 increased 46.0% to $1.58 billion, compared to $1.1 billion for the same period in 2017.

 

o

Excluding the impact of acquired deposits, legacy CapStar deposits increased 4.1% compared to the same period in 2017.

 

 

Average total assets for the quarter ended December 31, 2018 increased 46.0% to $1.94 billion, compared to $1.33 billion for the same period in 2017.

 

“With the acquisition of Athens, we experienced an increase in our loan portfolio of over 50% from the fourth quarter of 2017.  Excluding the impact of acquired loans, legacy CapStar loans grew 14% since the end of last year as our bankers continue to provide excellent service and differentiate themselves with our customers,” said Mr. Anderson.  “In addition, we continue to make good progress in our integration efforts with Athens Federal and are on track with our stated synergies and delivering on the economics of the merger at announcement. I’m confident the combined organization will bring even stronger value to our shareholders, our customers and the communities in which we serve,” Anderson concluded.

 


 

Dividend

 

On January 24, 2019, the board of directors of CapStar approved a quarterly dividend of $0.04 per share that will be paid on or about February 25, 2019 to all shareholders of record of CapStar’s capital stock as of the close of business on February 5, 2019.

 

Conference Call and Webcast Information

 

CapStar will host a conference call and webcast at 9:00 a.m. Central Time on Friday, January 25, 2019.  During the call, management will review the fourth quarter results and operational highlights.  Interested parties may listen to the call by dialing (844) 412-1002.  The conference ID number is 1857538.  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 December 31, 2018, on a consolidated basis, CapStar had total assets of $1.96 billion, gross loans of $1.43 billion, total deposits of $1.57 billion, and shareholders’ equity of $254.4 million.  Visit www.capstarbank.com for more information.

 

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, CapStar’s assets, business, cash flows, condition (financial or otherwise), credit quality, financial performance, liquidity, short and long-term performance goals, prospects, results of operations, strategic initiatives and the timing, benefits, costs and synergies of recently completed and future acquisition, disposition and other growth opportunities, including, without limitation, those relating to the acceptance by customers of Athens of CapStar’s products and services, the ability of CapStar to meet expectations regarding the benefits, costs, synergies, and financial and operational impact of the Athens merger, the possibility that any of the anticipated benefits, costs, synergies and financial and operational improvements of the Athens merger will not be realized or will not be realized as expected, the possibility that the Athens merger integration may be more expensive or take more time to complete than anticipated, the opportunities to enhance market share in certain markets and market acceptance of CapStar are generally in new markets and CapStar’s commitment to make contributions to Athens Federal Foundation. 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 its 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 (Loss) (unaudited) (dollars in thousands, except share data)

Fourth Quarter 2018 Earnings Release

 

Three Months Ended

 

 

Year Ended

 

 

 

December 31,

 

 

December 31,

 

 

 

2018

 

 

2017

 

 

2018

 

 

2017

 

Interest income:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loans, including fees

 

$

20,554

 

 

$

11,666

 

 

$

60,751

 

 

$

45,601

 

Securities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Taxable

 

 

1,411

 

 

 

869

 

 

 

4,184

 

 

 

3,696

 

Tax-exempt

 

 

416

 

 

 

286

 

 

 

1,201

 

 

 

1,230

 

Federal funds sold

 

 

8

 

 

 

15

 

 

 

63

 

 

 

41

 

Restricted equity securities

 

 

181

 

 

 

125

 

 

 

571

 

 

 

396

 

Interest-bearing deposits in financial institutions

 

 

330

 

 

 

163

 

 

 

1,011

 

 

 

551

 

Total interest income

 

 

22,900

 

 

 

13,124

 

 

 

67,781

 

 

 

51,515

 

Interest expense:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest-bearing deposits

 

 

1,371

 

 

 

608

 

 

 

4,164

 

 

 

2,447

 

Savings and money market accounts

 

 

1,619

 

 

 

827

 

 

 

5,446

 

 

 

3,188

 

Time deposits

 

 

1,472

 

 

 

694

 

 

 

3,940

 

 

 

2,445

 

Federal funds purchased

 

 

 

 

 

 

 

 

3

 

 

 

13

 

Securities sold under agreements to repurchase

 

 

3

 

 

 

 

 

 

3

 

 

 

0

 

Federal Home Loan Bank advances

 

 

719

 

 

 

477

 

 

 

2,533

 

 

 

1,559

 

Total interest expense

 

 

5,184

 

 

 

2,606

 

 

 

16,089

 

 

 

9,652

 

Net interest income

 

 

17,716

 

 

 

10,518

 

 

 

51,692

 

 

 

41,863

 

Provision for loan losses

 

 

1,514

 

 

 

(30

)

 

 

2,842

 

 

 

12,870

 

Net interest income after provision for loan losses

 

 

16,202

 

 

 

10,548

 

 

 

48,850

 

 

 

28,993

 

Noninterest income:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Treasury management and other deposit service charges

 

 

793

 

 

 

419

 

 

 

2,150

 

 

 

1,516

 

Net gain (loss) on sale of securities

 

 

1

 

 

 

(108

)

 

 

3

 

 

 

(66

)

Tri-Net fees

 

 

276

 

 

 

254

 

 

 

1,503

 

 

 

1,002

 

Mortgage banking income

 

 

1,324

 

 

 

1,621

 

 

 

5,653

 

 

 

6,238

 

Other noninterest income

 

 

3,993

 

 

 

550

 

 

 

6,150

 

 

 

2,218

 

Total noninterest income

 

 

6,387

 

 

 

2,736

 

 

 

15,459

 

 

 

10,908

 

Noninterest expense:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Salaries and employee benefits

 

 

9,475

 

 

 

5,411

 

 

 

28,586

 

 

 

20,400

 

Data processing and software

 

 

1,424

 

 

 

746

 

 

 

3,835

 

 

 

2,786

 

Professional fees

 

 

534

 

 

 

473

 

 

 

1,608

 

 

 

1,522

 

Occupancy

 

 

736

 

 

 

507

 

 

 

2,336

 

 

 

2,025

 

Equipment

 

 

810

 

 

 

467

 

 

 

2,471

 

 

 

2,071

 

Regulatory fees

 

 

364

 

 

 

234

 

 

 

1,028

 

 

 

1,111

 

Merger related expenses

 

 

8,929

 

 

 

 

 

 

9,803

 

 

 

 

Other operating

 

 

1,560

 

 

 

861

 

 

 

3,820

 

 

 

3,850

 

Total noninterest expense

 

 

23,832

 

 

 

8,699

 

 

 

53,487

 

 

 

33,765

 

Income (loss) before income taxes

 

 

(1,243

)

 

 

4,585

 

 

 

10,822

 

 

 

6,136

 

Income tax expense

 

 

(535

)

 

 

4,494

 

 

 

1,167

 

 

 

4,635

 

Net income (loss)

 

$

(708

)

 

$

91

 

 

$

9,655

 

 

$

1,501

 

Per share information:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic net income (loss) per share of common stock

 

$

(0.04

)

 

$

0.01

 

 

$

0.73

 

 

$

0.13

 

Diluted net income (loss) per share of common stock

 

$

(0.04

)

 

$

0.01

 

 

$

0.67

 

 

$

0.12

 

Weighted average shares outstanding:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

 

17,509,525

 

 

 

11,403,689

 

 

 

13,277,614

 

 

 

11,280,580

 

Diluted

 

 

18,716,562

 

 

 

12,938,288

 

 

 

14,480,347

 

 

 

12,803,511

 

 

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)

Fourth Quarter 2018 Earnings Release

 

Five Quarter Comparison

 

 

 

12/31/18

 

 

9/30/18

 

 

6/30/18

 

 

3/31/18

 

 

12/31/17

 

Income Statement Data:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net interest income

 

$

17,716

 

 

$

11,543

 

 

$

11,587

 

 

$

10,846

 

 

$

10,518

 

Provision for loan losses

 

 

1,514

 

 

 

481

 

 

 

169

 

 

 

678

 

 

 

(30

)

Net interest income after provision for loan losses

 

 

16,202

 

 

 

11,062

 

 

 

11,418

 

 

 

10,168

 

 

 

10,548

 

Treasury management and other deposit service charges

 

 

793

 

 

 

528

 

 

 

427

 

 

 

402

 

 

 

419

 

Net gain (loss) on sale of securities

 

 

1

 

 

 

(1

)

 

 

3

 

 

 

 

 

 

(108

)

Tri-Net fees

 

 

276

 

 

 

374

 

 

 

325

 

 

 

528

 

 

 

254

 

Mortgage banking income

 

 

1,324

 

 

 

1,634

 

 

 

1,383

 

 

 

1,313

 

 

 

1,621

 

Other noninterest income

 

 

3,993

 

 

 

683

 

 

 

627

 

 

 

845

 

 

 

550

 

Total noninterest income

 

 

6,387

 

 

 

3,218

 

 

 

2,765

 

 

 

3,088

 

 

 

2,736

 

Salaries and employee benefits

 

 

9,475

 

 

 

6,514

 

 

 

6,340

 

 

 

6,257

 

 

 

5,411

 

Data processing and software

 

 

1,424

 

 

 

803

 

 

 

810

 

 

 

798

 

 

 

746

 

Professional fees

 

 

534

 

 

 

255

 

 

 

344

 

 

 

474

 

 

 

473

 

Occupancy

 

 

736

 

 

 

544

 

 

 

535

 

 

 

521

 

 

 

507

 

Equipment

 

 

810

 

 

 

520

 

 

 

602

 

 

 

539

 

 

 

467

 

Regulatory fees

 

 

364

 

 

 

228

 

 

 

233

 

 

 

203

 

 

 

234

 

Merger related expenses

 

 

8,929

 

 

 

540

 

 

 

335

 

 

 

 

 

 

 

Other operating

 

 

1,560

 

 

 

666

 

 

 

806

 

 

 

788

 

 

 

861

 

Total noninterest expense

 

 

23,832

 

 

 

10,070

 

 

 

10,005

 

 

 

9,580

 

 

 

8,699

 

Net income (loss) before income tax expense

 

 

(1,243

)

 

 

4,210

 

 

 

4,178

 

 

 

3,676

 

 

 

4,585

 

Income tax (benefit) expense

 

 

(535

)

 

 

554

 

 

 

665

 

 

 

483

 

 

 

4,494

 

Net income (loss)

 

$

(708

)

 

$

3,656

 

 

$

3,513

 

 

$

3,193

 

 

$

91

 

Weighted average shares - basic

 

 

17,509,525

 

 

 

12,040,229

 

 

 

11,845,822

 

 

 

11,664,245

 

 

 

11,403,689

 

Weighted average shares - diluted

 

 

18,716,562

 

 

 

13,113,775

 

 

 

13,067,223

 

 

 

12,975,759

 

 

 

12,938,288

 

Net income (loss) per share, basic

 

$

(0.04

)

 

$

0.30

 

 

$

0.30

 

 

$

0.27

 

 

$

0.01

 

Net income (loss) per share, diluted

 

 

(0.04

)

 

 

0.28

 

 

 

0.27

 

 

 

0.25

 

 

 

0.01

 

Balance Sheet Data (at period end):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

105,443

 

 

$

52,589

 

 

$

58,222

 

 

$

51,125

 

 

$

82,797

 

Securities available-for-sale

 

 

243,808

 

 

 

187,469

 

 

 

183,364

 

 

 

189,580

 

 

 

192,621

 

Securities held-to-maturity

 

 

3,734

 

 

 

3,740

 

 

 

3,746

 

 

 

3,752

 

 

 

3,759

 

Loans held for sale

 

 

57,618

 

 

 

50,499

 

 

 

65,320

 

 

 

62,286

 

 

 

74,093

 

Total loans

 

 

1,429,794

 

 

 

1,073,870

 

 

 

1,046,525

 

 

 

1,031,821

 

 

 

947,537

 

Allowance for loan losses

 

 

(12,113

)

 

 

(15,218

)

 

 

(14,705

)

 

 

(14,563

)

 

 

(13,721

)

Total assets

 

 

1,963,883

 

 

 

1,416,907

 

 

 

1,401,181

 

 

 

1,382,745

 

 

 

1,344,429

 

Non-interest-bearing deposits

 

 

289,552

 

 

 

239,792

 

 

 

223,579

 

 

 

258,161

 

 

 

301,742

 

Interest-bearing deposits

 

 

1,280,456

 

 

 

886,611

 

 

 

921,435

 

 

 

869,393

 

 

 

818,124

 

Federal Home Loan Bank advances

 

 

125,000

 

 

 

125,000

 

 

 

95,000

 

 

 

100,000

 

 

 

70,000

 

Total liabilities

 

 

1,709,504

 

 

 

1,259,397

 

 

 

1,248,035

 

 

 

1,234,052

 

 

 

1,197,483

 

Shareholders' equity

 

$

254,379

 

 

$

157,510

 

 

$

153,146

 

 

$

148,693

 

 

$

146,946

 

Total shares of common stock outstanding

 

 

17,724,721

 

 

 

12,125,122

 

 

 

11,931,131

 

 

 

11,773,358

 

 

 

11,582,026

 

Total shares of preferred stock outstanding

 

 

878,048

 

 

 

878,048

 

 

 

878,049

 

 

 

878,049

 

 

 

878,049

 

Book value per share of common stock

 

$

13.84

 

 

$

12.25

 

 

$

12.08

 

 

$

11.87

 

 

$

11.91

 

Tangible book value per share of common stock *

 

 

11.25

 

 

 

11.74

 

 

 

11.56

 

 

 

11.34

 

 

 

11.37

 

Market value per common share

 

$

14.73

 

 

$

16.72

 

 

$

18.53

 

 

$

18.83

 

 

$

20.77

 

Capital ratios:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total risk based capital

 

 

12.84

%

 

 

12.62

%

 

 

12.53

%

 

 

12.22

%

 

 

12.52

%

Tier 1 risk based capital

 

 

12.13

%

 

 

11.49

%

 

 

11.41

%

 

 

11.11

%

 

 

11.41

%

Common equity tier 1 capital

 

 

11.61

%

 

 

10.83

%

 

 

10.73

%

 

 

10.43

%

 

 

10.70

%

Leverage

 

 

11.06

%

 

 

11.02

%

 

 

10.87

%

 

 

10.91

%

 

 

10.77

%

_____________________

*This metric is a non-GAAP financial measure.  See below for discussion and 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)

Fourth Quarter 2018 Earnings Release

 

 

Five Quarter Comparison

 

 

 

12/31/18

 

 

9/30/18

 

 

6/30/18

 

 

3/31/18

 

 

12/31/17

 

Average Balance Sheet Data:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

83,560

 

 

$

62,787

 

 

$

63,064

 

 

$

60,965

 

 

$

64,850

 

Investment securities

 

 

256,595

 

 

 

196,031

 

 

 

197,933

 

 

 

203,274

 

 

 

202,818

 

Loans held for sale

 

 

52,131

 

 

 

54,701

 

 

 

58,297

 

 

 

68,084

 

 

 

66,311

 

Loans

 

 

1,439,652

 

 

 

1,070,060

 

 

 

1,041,835

 

 

 

983,496

 

 

 

956,441

 

Assets

 

 

1,940,991

 

 

 

1,421,873

 

 

 

1,396,359

 

 

 

1,351,129

 

 

 

1,329,621

 

Interest bearing deposits

 

 

1,271,602

 

 

 

913,534

 

 

 

901,076

 

 

 

840,871

 

 

 

827,732

 

Deposits

 

 

1,579,250

 

 

 

1,147,274

 

 

 

1,138,400

 

 

 

1,111,182

 

 

 

1,081,380

 

Federal Home Loan Bank advances

 

 

102,304

 

 

 

109,728

 

 

 

99,121

 

 

 

84,533

 

 

 

92,554

 

Liabilities

 

 

1,695,181

 

 

 

1,265,610

 

 

 

1,244,824

 

 

 

1,202,854

 

 

 

1,181,954

 

Shareholders' equity

 

$

245,811

 

 

$

156,264

 

 

$

151,535

 

 

$

148,276

 

 

$

147,667

 

Performance Ratios:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Annualized return on average assets

 

 

-0.14

%

 

 

1.02

%

 

 

1.01

%

 

 

0.96

%

 

 

0.03

%

Annualized return on average equity

 

 

-1.14

%

 

 

9.28

%

 

 

9.30

%

 

 

8.74

%

 

 

0.25

%

Net interest margin (1)

 

 

3.89

%

 

 

3.35

%

 

 

3.46

%

 

 

3.39

%

 

 

3.30

%

Annualized Non-interest income to average assets

 

 

1.31

%

 

 

0.90

%

 

 

0.79

%

 

 

0.93

%

 

 

0.82

%

Efficiency ratio

 

 

98.9

%

 

 

68.2

%

 

 

69.7

%

 

 

68.8

%

 

 

65.6

%

Loans by Type (at period end):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial and industrial

 

$

404,600

 

 

$

398,626

 

 

$

386,065

 

 

$

408,353

 

 

$

373,248

 

Commercial real estate - owner occupied

 

 

141,932

 

 

 

117,904

 

 

 

121,475

 

 

 

131,741

 

 

 

101,132

 

Commercial real estate - non-owner occupied

 

 

408,514

 

 

 

286,848

 

 

 

286,769

 

 

 

258,016

 

 

 

249,490

 

Construction and development

 

 

174,670

 

 

 

129,799

 

 

 

96,580

 

 

 

91,953

 

 

 

82,586

 

Consumer real estate

 

 

253,562

 

 

 

112,957

 

 

 

109,915

 

 

 

104,224

 

 

 

102,581

 

Consumer

 

 

25,615

 

 

 

8,274

 

 

 

9,671

 

 

 

9,524

 

 

 

6,862

 

Other

 

$

21,002

 

 

$

19,792

 

 

$

36,428

 

 

$

28,750

 

 

$

31,984

 

Asset Quality Data: