cstr-8k_20200123.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 23, 2020

______________________________


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))

 

Securities registered pursuant to Section 12(b) of the Exchange Act:

Title of each class

 

Trading Symbol(s)

 

Name of each exchange

on which registered

Common Stock, $1.00 par value per share

 

CSTR

 

Nasdaq Global Select Market

 

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 23, 2020, CapStar Financial Holdings, Inc. (the “Company”) issued an earnings release announcing its financial results for the fourth quarter ended December 31, 2019.  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 8:30 a.m. (Central Time) on January 24, 2020 to discuss its financial results for the fourth quarter ended December 31, 2019.  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 information disclosed under Item 2.02 of this Report is incorporated by reference into this Item 7.01.

 

Section 9 – Financial Statements and Exhibits

 

Item 9.01.  Financial Statements and Exhibits.

 

Exhibit Number

 

Description

99.1

 

Earnings release issued on January 23, 2020 by CapStar Financial Holdings, Inc.

99.2

 

Presentation for conference call to be conducted by CapStar Financial Holdings, Inc. on January 24, 2020.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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 23, 2020

 

3

cstr-ex991_7.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 $0.29 and Fully Diluted Operating EPS of $0.30 for Q4 2019

 

NASHVILLE, TN, January 23, 2020/GlobeNewswire/ -- CapStar Financial Holdings, Inc. (“CapStar”) (NASDAQ:CSTR) reported net income of $5.42 million, or $0.29 per share on a fully diluted basis, for the three months ended December 31, 2019, compared to a net loss of ($0.71) million, or ($0.04) per share on a fully diluted basis, for the three months ended December 31, 2018.  Operating(1) net income was $5.54 million, or $0.30 per share on a fully diluted basis, for the three months ended December 31, 2019, compared to $6.24 million, or $0.33 per share on a fully diluted basis, for the three months ended December 31, 2018.  Included in the fourth quarter 2019 results is a one-time charge of $289K associated with the early retirement of four employees, which reduces annualized non-interest expense by $582K.   

 

Net income was $22.42 million, or $1.20 per share on a fully diluted basis, for the twelve months ended December 31, 2019, compared to net income of $9.66 million, or $0.67 per share on a fully diluted basis, for the twelve months ended December 31, 2018.  Operating net income was $24.38 million, or $1.31 per share on a fully diluted basis, for the twelve months ended December 31, 2019, compared to $17.25 million, or $1.19 per share on a fully diluted basis, for the twelve months ended December 31, 2018.  

 

“I am pleased with everything that the CapStar team was able to accomplish in 2019 and am excited about the outlook for 2020,” said Timothy K. Schools, CapStar’s president and CEO.  “We believe we are in a good position from a credit perspective and have improved the quality of our loan portfolio, by reducing the percentage of shared national credits and highly leveraged loans in our portfolio,” continued Mr. Schools.  “In addition, both our Tri-Net and Mortgage teams had record years and we successfully integrated Athens Federal.”

 

“Further, we are thrilled to enter the Knoxville market under the leadership of King Purnell and Amy Pangelinan and look forward to demonstrating our differentiated delivery of financial services and establishing ourselves as a leader in Knoxville” said Mr. Schools.  

 

Soundness

 

Non-performing assets as a percentage of total assets were 0.12% at December 31, 2019 compared to 0.16% at December 31, 2018.

 

Annualized net charge-offs to average loans were 0.06% for the three months ended December 31, 2019 compared to 1.27% for the same period in 2018.

 

The total risk based capital ratio was 13.45% at December 31, 2019 compared to 12.84% at December 31, 2018.

 

Profitability

 

Operating annualized return on average assets for the three months ended December 31, 2019 was 1.08% compared to 1.27% for the same period in 2018.

 

Operating annualized return on average tangible equity for the three months ended December 31, 2019 was 9.69% compared to 12.36% for the same period in 2018.

(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.


 

 

Net interest margin for the three months ended December 31, 2019 was 3.49% compared to 3.89% for the same period in 2018.

 

The operating efficiency ratio for the three months ended December 31, 2019 was 67.73% compared to 61.83% for the same period in 2018.

 

“While fourth quarter profitability metrics were less than the prior year, we took a one-time charge of $289K associated with the early retirement of four employees, which reduces annualized non-interest expense by $582K.  Additionally, a flattening yield curve and the three rate cuts that the FOMC made in the second half of 2019 also impacted the quarter,” said Rob Anderson, chief financial officer and chief administrative officer of CapStar.

 

Growth

 

Average gross loans for the quarter ended December 31, 2019 fell 0.60% to $1.43 billion, compared to $1.44 billion for the same period in 2018.

 

Average deposits for the quarter ended December 31, 2019 increased 8.34% to $1.71 billion, compared to $1.58 billion for the same period in 2018.

 

Dividend

 

On January 23, 2020, the board of directors of CapStar approved a quarterly dividend of $0.05 per common share that will be paid on February 21, 2020 to shareholders of record of CapStar’s common stock as of the close of business on February 7, 2020.

 

Conference Call and Webcast Information

 

CapStar will host a conference call and webcast at 8:30 a.m. Central Time on Friday January 24, 2020.  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 6275611.  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, 2019, on a consolidated basis, CapStar had total assets of $2.04 billion, gross loans of $1.42 billion, total deposits of $1.73 billion, and shareholders’ equity of $273.05 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 a projected increase in liquidity for our shareholders, improvements in our loan production and deposit gathering capabilities, managing interest rate risk, 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 and the opportunities to enhance market share in certain markets and market acceptance of CapStar are generally in new markets. 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, 2018 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 (unaudited) (dollars in thousands, except share data)

Fourth Quarter 2019 Earnings Release

 

 

Three Months Ended

 

 

Year Ended

 

 

 

December 31,

 

 

December 31,

 

 

 

2019

 

 

2018

 

 

2019

 

 

2018

 

Interest income:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loans, including fees

 

$

20,233

 

 

$

20,554

 

 

$

82,828

 

 

$

60,751

 

Securities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Taxable

 

 

1,077

 

 

 

1,411

 

 

 

4,619

 

 

 

4,184

 

Tax-exempt

 

 

347

 

 

 

416

 

 

 

1,438

 

 

 

1,201

 

Federal funds sold

 

 

 

 

 

8

 

 

 

26

 

 

 

63

 

Restricted equity securities

 

 

171

 

 

 

181

 

 

 

755

 

 

 

571

 

Interest-bearing deposits in financial institutions

 

 

377

 

 

 

330

 

 

 

1,881

 

 

 

1,011

 

Total interest income

 

 

22,205

 

 

 

22,900

 

 

 

91,547

 

 

 

67,781

 

Interest expense:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest-bearing deposits

 

 

2,015

 

 

 

1,371

 

 

 

7,538

 

 

 

4,164

 

Savings and money market accounts

 

 

1,821

 

 

 

1,619

 

 

 

7,266

 

 

 

5,446

 

Time deposits

 

 

1,626

 

 

 

1,472

 

 

 

7,542

 

 

 

3,940

 

Federal funds purchased

 

 

 

 

 

 

 

 

4

 

 

 

3

 

Securities sold under agreements to repurchase

 

 

 

 

 

3

 

 

 

5

 

 

 

3

 

Federal Home Loan Bank advances

 

 

162

 

 

 

719

 

 

 

1,444

 

 

 

2,533

 

Total interest expense

 

 

5,624

 

 

 

5,184

 

 

 

23,799

 

 

 

16,089

 

Net interest income

 

 

16,581

 

 

 

17,716

 

 

 

67,748

 

 

 

51,692

 

Provision for loan losses

 

 

 

 

 

1,514

 

 

 

761

 

 

 

2,842

 

Net interest income after provision for loan losses

 

 

16,581

 

 

 

16,202

 

 

 

66,987

 

 

 

48,850

 

Noninterest income:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Treasury management and other deposit service charges

 

 

736

 

 

 

793

 

 

 

3,135

 

 

 

2,150

 

Net gain (loss) on sale of securities

 

 

9

 

 

 

1

 

 

 

(99

)

 

 

3

 

Tri-Net fees

 

 

274

 

 

 

276

 

 

 

2,785

 

 

 

1,503

 

Mortgage banking income

 

 

2,316

 

 

 

1,324

 

 

 

9,467

 

 

 

5,653

 

Other noninterest income

 

 

2,384

 

 

 

3,993

 

 

 

8,986

 

 

 

6,150

 

Total noninterest income

 

 

5,719

 

 

 

6,387

 

 

 

24,274

 

 

 

15,459

 

Noninterest expense:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Salaries and employee benefits

 

 

9,318

 

 

 

9,475

 

 

 

35,542

 

 

 

28,586

 

Data processing and software

 

 

1,835

 

 

 

1,424

 

 

 

6,961

 

 

 

3,835

 

Professional fees

 

 

531

 

 

 

534

 

 

 

2,102

 

 

 

1,608

 

Occupancy

 

 

795

 

 

 

736

 

 

 

3,345

 

 

 

2,336

 

Equipment

 

 

834

 

 

 

810

 

 

 

3,723

 

 

 

2,471

 

Regulatory fees

 

 

28

 

 

 

364

 

 

 

591

 

 

 

1,028

 

Merger related expenses

 

 

163

 

 

 

8,929

 

 

 

2,654

 

 

 

9,803

 

Amortization of intangibles

 

 

397

 

 

 

442

 

 

 

1,655

 

 

 

465

 

Other operating

 

 

1,365

 

 

 

1,118

 

 

 

5,422

 

 

 

3,355

 

Total noninterest expense

 

 

15,266

 

 

 

23,832

 

 

 

61,995

 

 

 

53,487

 

Income (loss) before income taxes

 

 

7,034

 

 

 

(1,243

)

 

 

29,266

 

 

 

10,822

 

Income tax expense (benefit)

 

 

1,613

 

 

 

(535

)

 

 

6,844

 

 

 

1,167

 

Net income (loss)

 

$

5,421

 

 

$

(708

)

 

$

22,422

 

 

$

9,655

 

Per share information:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic net income (loss) per share of common stock

 

$

0.30

 

 

$

(0.04

)

 

$

1.25

 

 

$

0.73

 

Diluted net income (loss) per share of common stock

 

$

0.29

 

 

$

(0.04

)

 

$

1.20

 

 

$

0.67

 

Weighted average shares outstanding:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

 

18,350,994

 

 

 

17,509,525

 

 

 

17,886,164

 

 

 

13,277,614

 

Diluted

 

 

18,443,916

 

 

 

18,716,562

 

 

 

18,613,224

 

 

 

14,480,347

 

 

This information is preliminary and based on CapStar data available at the time of this earnings release.


 

CAPSTAR FINANCIAL HOLDINGS, INC. AND SUBSIDIARY

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

Fourth Quarter 2019 Earnings Release

 

 

Five Quarter Comparison

 

 

 

12/31/19

 

 

9/30/19

 

 

6/30/19

 

 

3/31/19

 

 

12/31/18

 

Income Statement Data:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net interest income

 

$

16,581

 

 

$

17,156

 

 

$

17,008

 

 

$

17,002

 

 

$

17,715

 

Provision for loan losses

 

 

 

 

 

(125

)

 

 

 

 

 

886

 

 

 

1,514

 

Net interest income after provision for loan losses

 

 

16,581

 

 

 

17,281

 

 

 

17,008

 

 

 

16,116

 

 

 

16,201

 

Treasury management and other deposit service charges

 

 

736

 

 

 

788

 

 

 

813

 

 

 

798

 

 

 

793

 

Net gain (loss) on sale of securities

 

 

9

 

 

 

 

 

 

(121

)

 

 

12

 

 

 

1

 

Tri-Net fees

 

 

274

 

 

 

847

 

 

 

1,024

 

 

 

641

 

 

 

276

 

Mortgage banking income

 

 

2,316

 

 

 

2,679

 

 

 

3,087

 

 

 

1,385

 

 

 

1,324

 

Other noninterest income

 

 

2,384

 

 

 

2,474

 

 

 

2,229

 

 

 

1,899

 

 

 

3,993

 

Total noninterest income

 

 

5,719

 

 

 

6,788

 

 

 

7,032

 

 

 

4,735

 

 

 

6,387

 

Salaries and employee benefits

 

 

9,318

 

 

 

9,229

 

 

 

8,563

 

 

 

8,432

 

 

 

9,475

 

Data processing and software

 

 

1,835

 

 

 

1,790

 

 

 

1,862

 

 

 

1,474

 

 

 

1,424

 

Professional fees

 

 

531

 

 

 

528

 

 

 

501

 

 

 

543

 

 

 

534

 

Occupancy

 

 

795

 

 

 

858

 

 

 

809

 

 

 

883

 

 

 

736

 

Equipment

 

 

834

 

 

 

1,012

 

 

 

1,026

 

 

 

852

 

 

 

810

 

Regulatory fees

 

 

28

 

 

 

18

 

 

 

272

 

 

 

274

 

 

 

364

 

Merger related expenses

 

 

163

 

 

 

187

 

 

 

1,711

 

 

 

594

 

 

 

8,929

 

Amortization of intangibles

 

 

397

 

 

 

408

 

 

 

419

 

 

 

430

 

 

 

442

 

Other operating

 

 

1,365

 

 

 

1,501

 

 

 

1,307

 

 

 

1,243

 

 

 

1,117

 

Total noninterest expense

 

 

15,266

 

 

 

15,531

 

 

 

16,470

 

 

 

14,725

 

 

 

23,831

 

Net income (loss) before income tax expense

 

 

7,034

 

 

 

8,538

 

 

 

7,570

 

 

 

6,126

 

 

 

(1,243

)

Income tax (benefit) expense

 

 

1,613

 

 

 

2,072

 

 

 

1,814

 

 

 

1,346

 

 

 

(535

)

Net income (loss)

 

$

5,421

 

 

$

6,466

 

 

$

5,756

 

 

$

4,780

 

 

$

(708

)

Weighted average shares - basic

 

 

18,350,994

 

 

 

17,741,778

 

 

 

17,663,992

 

 

 

17,783,239

 

 

 

17,509,525

 

Weighted average shares - diluted

 

 

18,443,916

 

 

 

18,532,479

 

 

 

18,650,706

 

 

 

18,830,933

 

 

 

18,716,562

 

Net income (loss) per share, basic

 

$

0.30

 

 

$

0.36

 

 

$

0.33

 

 

$

0.27

 

 

$

(0.04

)

Net income (loss) per share, diluted

 

 

0.29

 

 

 

0.35

 

 

 

0.31

 

 

 

0.25

 

 

 

(0.04

)

Balance Sheet Data (at period end):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

101,269

 

 

$

154,021

 

 

$

156,085

 

 

$

120,321

 

 

$

105,443

 

Securities available-for-sale

 

 

213,129

 

 

 

203,500

 

 

 

194,957

 

 

 

233,691

 

 

 

243,808

 

Securities held-to-maturity

 

 

3,313

 

 

 

3,319

 

 

 

3,721

 

 

 

3,727

 

 

 

3,734

 

Loans held for sale

 

 

168,222

 

 

 

129,613

 

 

 

89,629

 

 

 

72,870

 

 

 

57,618

 

Total loans

 

 

1,420,102

 

 

 

1,411,768

 

 

 

1,440,617

 

 

 

1,467,786

 

 

 

1,429,794

 

Allowance for loan losses

 

 

(12,604

)

 

 

(12,828

)

 

 

(12,903

)

 

 

(12,959

)

 

 

(12,113

)

Total assets

 

 

2,037,201

 

 

 

2,033,911

 

 

 

2,018,421

 

 

 

2,035,811

 

 

 

1,963,883

 

Non-interest-bearing deposits

 

 

312,096

 

 

 

352,266

 

 

 

326,550

 

 

 

312,597

 

 

 

289,552

 

Interest-bearing deposits

 

 

1,417,355

 

 

 

1,379,497

 

 

 

1,396,220

 

 

 

1,366,205

 

 

 

1,280,456

 

Federal Home Loan Bank advances

 

 

10,000

 

 

 

10,000

 

 

 

10,000

 

 

 

75,000

 

 

 

125,000

 

Total liabilities

 

 

1,764,155

 

 

 

1,765,829

 

 

 

1,755,757

 

 

 

1,776,060

 

 

 

1,709,504

 

Shareholders' equity

 

$

273,046

 

 

$

268,082

 

 

$

262,664

 

 

$

259,751

 

 

$

254,379

 

Total shares of common stock outstanding

 

 

18,361,922

 

 

 

18,343,403

 

 

 

17,561,476

 

 

 

17,765,124

 

 

 

17,724,721

 

Total shares of preferred stock outstanding

 

 

 

 

 

 

 

 

878,048

 

 

 

878,048

 

 

 

878,048

 

Book value per share of common stock

 

$

14.87

 

 

$

14.61

 

 

$

14.44

 

 

$

14.11

 

 

$

13.84

 

Tangible book value per share of common stock *

 

 

12.45

 

 

 

12.17

 

 

 

11.87

 

 

 

11.55

 

 

 

11.25

 

Market value per common share

 

$

16.65

 

 

$

16.58

 

 

$

15.15

 

 

$

14.44

 

 

$

14.73

 

Capital ratios:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total risk based capital

 

 

13.45

%

 

 

13.46

%

 

 

13.29

%

 

 

12.64

%

 

 

12.84

%

Tier 1 risk based capital

 

 

12.73

%

 

 

12.71

%

 

 

12.53

%

 

 

11.90

%

 

 

12.13

%

Common equity tier 1 capital

 

 

12.73

%

 

 

12.71

%

 

 

12.01

%

 

 

11.40

%

 

 

11.61

%

Leverage

 

 

11.37

%

 

 

11.24

%

 

 

11.01

%

 

 

10.97

%

 

 

11.06

%

_____________________

*This metric is a non-GAAP financial measure.  See Non-GAAP disclaimer in this earnings release and below for discussion and reconciliation to the most directly comparable GAAP financial measure.

 

This information is preliminary and based on CapStar data available at the time of this earnings release.

 


 

CAPSTAR FINANCIAL HOLDINGS, INC. AND SUBSIDIARY

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

Fourth Quarter 2019 Earnings Release

 

 

Five Quarter Comparison

 

 

 

12/31/19

 

 

9/30/19

 

 

6/30/19

 

 

3/31/19

 

 

12/31/18

 

Average Balance Sheet Data:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

115,100

 

 

$

129,114

 

 

$

93,523

 

 

$

83,689

 

 

$

83,560

 

Investment securities

 

 

225,265

 

 

 

211,460

 

 

 

228,283

 

 

 

251,631

 

 

 

256,595

 

Loans held for sale

 

 

140,731

 

 

 

101,835

 

 

 

91,585

 

 

 

66,880

 

 

 

52,131

 

Loans

 

 

1,431,027

 

 

 

1,445,755

 

 

 

1,469,210

 

 

 

1,461,696

 

 

 

1,439,652

 

Assets

 

 

2,030,231

 

 

 

2,005,950

 

 

 

2,004,207

 

 

 

1,988,478

 

 

 

1,940,991

 

Interest bearing deposits

 

 

1,388,496

 

 

 

1,370,988

 

 

 

1,364,211

 

 

 

1,299,205

 

 

 

1,271,602

 

Deposits

 

 

1,711,021

 

 

 

1,704,873

 

 

 

1,678,240

 

 

 

1,588,317

 

 

 

1,579,250

 

Federal Home Loan Bank advances

 

 

22,391

 

 

 

12,174

 

 

 

42,088

 

 

 

117,278

 

 

 

102,304

 

Liabilities

 

 

1,758,663

 

 

 

1,739,509

 

 

 

1,743,010

 

 

 

1,731,373

 

 

 

1,695,181

 

Shareholders' equity

 

$

271,568

 

 

$

266,441

 

 

$

261,197

 

 

$

257,105

 

 

$

245,811

 

Performance Ratios:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Annualized return on average assets

 

 

1.06

%

 

 

1.28

%

 

 

1.15

%

 

 

0.97

%

 

 

(0.14

)%

Annualized return on average equity

 

 

7.92

%

 

 

9.63

%

 

 

8.84

%

 

 

7.54

%

 

 

(1.14

)%

Net interest margin (1)

 

 

3.49

%

 

 

3.66

%

 

 

3.68

%

 

 

3.75

%

 

 

3.89

%

Annualized noninterest income to average assets

 

 

1.12

%

 

 

1.34

%

 

 

1.41

%

 

 

0.97

%

 

 

1.31

%

Efficiency ratio

 

 

68.46

%

 

 

64.87

%

 

 

68.51

%

 

 

67.74

%

 

 

98.88

%

Loans by Type (at period end):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial and industrial

 

$

394,408

 

 

$

382,816

 

 

$

404,745

 

 

$

419,941

 

 

$

404,600

 

Commercial real estate - owner occupied

 

 

172,456

 

 

 

169,370

 

 

 

173,316

 

 

 

170,558

 

 

 

141,931

 

Commercial real estate - non-owner occupied

 

 

387,443

 

 

 

407,378

 

 

 

421,496

 

 

 

403,443

 

 

 

408,515

 

Construction and development

 

 

143,111

 

 

 

132,222

 

 

 

123,901

 

 

 

162,237

 

 

 

174,670

 

Consumer real estate

 

 

256,097

 

 

 

254,736

 

 

 

255,043

 

 

 

248,943

 

 

 

253,562

 

Consumer

 

 

28,426

 

 

 

29,059

 

 

 

26,704

 

 

 

26,241

 

 

 

25,615

 

Other

 

 

38,161