cstr-8k_20200427.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): April 27, 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 April 27, 2020, CapStar Financial Holdings, Inc. (the “Company”) issued an earnings release announcing its financial results for the first quarter ended March 31, 2020.  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 April 28, 2020 to discuss its financial results for the first quarter ended March 31, 2020.

 

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 April 27, 2020 by CapStar Financial Holdings, Inc.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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: April 27, 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 Financial Holdings, Inc. Report First Quarter 2020 Results

 

Entering Cycle with Strong Balance Sheet Position

 

NASHVILLE, TN, April 27, 2020/GlobeNewswire/ -- CapStar Financial Holdings, Inc. (“CapStar”) (NASDAQ:CSTR) reported first quarter net income of $1.3 million, pre-tax pre-provision income of $8.3 million, and increased its allowance for loan losses $7.5 million based on an initial assessment of the range of potential impacts from the COVID-19 pandemic to its loan portfolio. As a result, CapStar’s allowance for loan losses to total loans increased during the quarter from 0.89 percent to 1.39 percent at March 31, 2020. Fully diluted earnings per share were $0.07, compared to $0.25 from a year ago. Excluding merger-related and other charges, operating(1) earnings per share were $0.08.

 

“I am pleased with the quality and improvement in our first quarter pre-tax pre-provision earnings, given how challenging the industry’s outlook was for 2020,” said Timothy K. Schools, CapStar’s president and chief executive officer. “Mid-quarter, our attention quickly and unexpectedly pivoted to addressing the impacts of COVID-19. I could not be prouder of what our teammates have accomplished working together to support each other, clients, and communities. It is unimaginable that over the last forty-five days we mobilized 100% of our non-branch employees to work from home, served our clients solely through online banking and drive thru locations, and responded and processed approximately 1,700 applications for the Small Business Administration’s Paycheck Protection Program.”

 

“Importantly, our leadership team proactively enacted well thought out pandemic procedures,” Schools continued. “Forward thinking in technology investments, liquidity planning, credit administration, and capital planning positions us well as we enter the current cycle. We believe in and are excited about our communities and look forward to continuing to be a leader as we all work together to navigate this environment. While we will face uncertain challenges in the near-term and loan losses are likely, we are cautiously optimistic with the initial assessment of our credit risk.”

 

Soundness

 

Annualized net charge-offs to average loans were 0.01% for the three months ended March 31, 2020 compared to 0.01% for the same period in 2019.

 

Non-performing assets to total loans and OREO were 0.26% at March 31, 2020 compared to 0.19% at March 31, 2019.

 

The leverage ratio was 11.19% at March 31, 2020 compared to 10.97% at March 31, 2019.

 

The total risk based capital ratio was 13.64% at March 31, 2020 compared to 12.64% at March 31, 2019.

 

(1) Operating measures exclude merger-related expenses unrelated to CapStar’s normal operations. 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.


 

Profitability

 

Net interest margin for the three months ended March 31, 2020 was 3.50% compared to 3.75% for the same period in 2019.

 

The operating efficiency ratio for the three months ended March 31, 2020 was 61.78% compared to 65.01% for the same period in 2019.

 

Operating annualized pre-tax pre-provision income to average assets for the three months ended March 31, 2020 was 1.68% compared to 1.55% for the same period in 2019.

 

Operating annualized return on average assets for the three months ended March 31, 2020 was 0.30% compared to 1.06% for the same period in 2019.

 

Operating annualized return on average tangible equity for the three months ended March 31, 2020 was 2.68% compared to 10.02% for the same period in 2019.

 

Growth

 

Average deposits for the quarter ended March 31, 2020 increased 9.3% to $1.74 billion, compared to $1.59 billion for the same period in 2019.

 

Average gross loans for the quarter ended March 31, 2020 fell 2.8% to $1.42 billion, compared to $1.46 billion for the same period in 2019.

 

Pre-tax pre-provision earnings for the quarter ended March 31, 2020 increased 18.7% to $8.3 million, compared to $7.0 million for the quarter ended March 31, 2019.

 

Tangible book value per share for the quarter ended March 31, 2020 increased 9.6% to $12.66, compared to $11.55 for the quarter ended March 31, 2019.

 

Dividend

 

As previously announced on April 22, 2020, the board of directors of CapStar approved a quarterly dividend of $0.05 per common share that will be paid on May 29, 2020 to shareholders of record of CapStar’s common stock as of the close of business on May 15, 2020.

 

Conference Call and Webcast Information

 

CapStar will host a conference call and webcast at 8:30 a.m. Central Time on Tuesday, April 28, 2020. During the call, management will review the first quarter results and operational highlights. Interested parties may listen to the call by dialing (844) 412-1002. The conference ID number is 2681305. 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 March 31, 2020, on a consolidated basis, CapStar had total assets of $2.07 billion, gross loans of $1.45 billion, total deposits of $1.76 billion, and shareholders’ equity of $275.8 million. Visit www.capstarbank.com for more information.

 

FORWARD-LOOKING STATEMENTS

This release contains forward-looking statements, as defined by federal securities laws, including statements about CapStar Financial Holdings, Inc. (“CapStar”) and its financial outlook and business environment. These statements are based on current expectations and are provided to assist in the understanding of our operations and future financial performance. Our operations and such performance involves risks and uncertainties, including but in no way limited to the effect of the COVID-19 pandemic, that may cause actual results to differ materially from those expressed or implied in

 


 

any such statements. For a discussion of some of the risks and other factors that may cause such forward-looking statements to differ materially from actual results, please refer to CapStar’s filings with the Securities and Exchange Commission, including its 2019 Annual Report on Form 10-K under the sections entitled “Forward-Looking Statements” and “Item 1A Risk Factors.”  Forward-looking statements speak only as of the date they are made, and except as otherwise required by applicable law, we undertake no obligation to update or revise forward-looking statements.

NON-GAAP MEASURES

This release includes financial information determined by methods other than in accordance with generally accepted accounting principles (“GAAP”). This financial information includes certain operating performance measures, which exclude merger-related and other charges that are not considered part of recurring operations. Such measures include: “Efficiency ratio – operating,” “Expenses – operating,” “Earnings per share – operating,” “Diluted earnings per share – operating,” “Tangible book value per share,” “Return on common equity – operating,” “Return on tangible common equity – operating,” “Return on assets – operating,” and “Tangible common equity to tangible assets.”

Management has included these non-GAAP measures because it believes these measures may provide useful supplemental information for evaluating CapStar’s underlying performance trends. Further, management uses these measures in managing and evaluating CapStar’s business and intends to refer to them in discussions about our operations and performance. Operating performance measures should be viewed in addition to, and not as an alternative to or substitute for, measures determined in accordance with GAAP, and are not necessarily comparable to non-GAAP measures that may be presented by other companies. To the extent applicable, reconciliations of these non-GAAP measures to the most directly comparable GAAP measures can be found in the ‘Non-GAAP Reconciliation Tables’ included in the exhibits to this presentation.

 


 

CAPSTAR FINANCIAL HOLDINGS, INC. AND SUBSIDIARY

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

First Quarter 2020 Earnings Release

 

 

Three Months Ended

 

 

 

March 31,

 

 

 

2020

 

 

2019

 

Interest income:

 

 

 

 

 

 

 

 

Loans, including fees

 

$

19,738

 

 

$

20,592

 

Securities:

 

 

 

 

 

 

 

 

Taxable

 

 

1,174

 

 

 

1,346

 

Tax-exempt

 

 

321

 

 

 

377

 

Federal funds sold

 

 

 

 

 

19

 

Restricted equity securities

 

 

142

 

 

 

187

 

Interest-bearing deposits in financial institutions

 

 

363

 

 

 

446

 

Total interest income

 

 

21,738

 

 

 

22,967

 

Interest expense:

 

 

 

 

 

 

 

 

Interest-bearing deposits

 

 

1,901

 

 

 

1,594

 

Savings and money market accounts

 

 

1,551

 

 

 

1,718

 

Time deposits

 

 

1,481

 

 

 

1,813

 

Federal funds purchased

 

 

 

 

 

4

 

Securities sold under agreements to repurchase

 

 

 

 

 

5

 

Federal Home Loan Bank advances

 

 

144

 

 

 

831

 

Total interest expense

 

 

5,077

 

 

 

5,965

 

Net interest income

 

 

16,661

 

 

 

17,002

 

Provision for loan losses

 

 

7,553

 

 

 

886

 

Net interest income after provision for loan losses

 

 

9,108

 

 

 

16,116

 

Noninterest income:

 

 

 

 

 

 

 

 

Treasury management and other deposit service charges

 

 

775

 

 

 

798

 

Net gain on sale of securities

 

 

27

 

 

 

12

 

Tri-Net fees

 

 

599

 

 

 

641

 

Mortgage banking income

 

 

2,253

 

 

 

1,385

 

Wealth management fees

 

 

407

 

 

 

306

 

Interchange and debit card transaction fees

 

 

724

 

 

 

579

 

Other noninterest income

 

 

1,089

 

 

 

1,014

 

Total noninterest income

 

 

5,874

 

 

 

4,735

 

Noninterest expense:

 

 

 

 

 

 

 

 

Salaries and employee benefits

 

 

8,002

 

 

 

8,432

 

Data processing and software

 

 

1,864

 

 

 

1,474

 

Professional fees

 

 

636

 

 

 

543

 

Occupancy

 

 

820

 

 

 

883

 

Equipment

 

 

751

 

 

 

852

 

Regulatory fees

 

 

163

 

 

 

274

 

Merger related expenses

 

 

290

 

 

 

594

 

Amortization of intangibles

 

 

386

 

 

 

430

 

Other operating

 

 

1,299

 

 

 

1,243

 

Total noninterest expense

 

 

14,211

 

 

 

14,725

 

Income before income taxes

 

 

771

 

 

 

6,126

 

Income tax expense (benefit)

 

 

(575

)

 

 

1,346

 

Net income

 

$

1,346

 

 

$

4,780

 

Per share information:

 

 

 

 

 

 

 

 

Basic net income per share of common stock

 

$

0.07

 

 

$

0.27

 

Diluted net income per share of common stock

 

$

0.07

 

 

$

0.25

 

Weighted average shares outstanding:

 

 

 

 

 

 

 

 

Basic

 

 

18,392,913

 

 

 

17,783,239

 

Diluted

 

 

18,443,725

 

 

 

18,830,933

 

 

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)

First Quarter 2020 Earnings Release

 

 

Five Quarter Comparison

 

 

 

3/31/20

 

 

12/31/19

 

 

9/30/19

 

 

6/30/19

 

 

3/31/19

 

Income Statement Data:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net interest income

 

$

16,661

 

 

$

16,581

 

 

$

17,156

 

 

$

17,008

 

 

$

17,002

 

Provision for loan losses

 

 

7,553

 

 

 

 

 

 

(125

)

 

 

 

 

 

886

 

Net interest income after provision for loan losses

 

 

9,108

 

 

 

16,581

 

 

 

17,281

 

 

 

17,008

 

 

 

16,116

 

Treasury management and other deposit service charges

 

 

775

 

 

 

736

 

 

 

788

 

 

 

813

 

 

 

798

 

Net gain (loss) on sale of securities

 

 

27

 

 

 

9

 

 

 

 

 

 

(121

)

 

 

12

 

Tri-Net fees

 

 

599

 

 

 

274

 

 

 

847

 

 

 

1,024

 

 

 

641

 

Mortgage banking income

 

 

2,253

 

 

 

2,316

 

 

 

2,679

 

 

 

3,087

 

 

 

1,385

 

Wealth management fees

 

 

407

 

 

 

407

 

 

 

379

 

 

 

334

 

 

 

306

 

Interchange and debit card transaction fees

 

 

724

 

 

 

928

 

 

 

754

 

 

 

991

 

 

 

579

 

Other noninterest income

 

 

1,089

 

 

 

1,049

 

 

 

1,341

 

 

 

904

 

 

 

1,014

 

Total noninterest income

 

 

5,874

 

 

 

5,719

 

 

 

6,788

 

 

 

7,032

 

 

 

4,735

 

Salaries and employee benefits

 

 

8,002

 

 

 

9,318

 

 

 

9,229

 

 

 

8,563

 

 

 

8,432

 

Data processing and software

 

 

1,864

 

 

 

1,835

 

 

 

1,790

 

 

 

1,862

 

 

 

1,474

 

Professional fees

 

 

636

 

 

 

531

 

 

 

528

 

 

 

501

 

 

 

543

 

Occupancy

 

 

820

 

 

 

795

 

 

 

858

 

 

 

809

 

 

 

883

 

Equipment

 

 

751

 

 

 

834

 

 

 

1,012

 

 

 

1,026

 

 

 

852

 

Regulatory fees

 

 

163

 

 

 

28

 

 

 

18

 

 

 

272

 

 

 

274

 

Merger related expenses

 

 

290

 

 

 

163

 

 

 

187

 

 

 

1,711

 

 

 

594

 

Amortization of intangibles

 

 

386

 

 

 

397

 

 

 

408

 

 

 

419

 

 

 

430

 

Other operating

 

 

1,299

 

 

 

1,365

 

 

 

1,501

 

 

 

1,307

 

 

 

1,243

 

Total noninterest expense

 

 

14,211

 

 

 

15,266

 

 

 

15,531

 

 

 

16,470

 

 

 

14,725

 

Net income before income tax expense

 

 

771

 

 

 

7,034

 

 

 

8,538

 

 

 

7,570

 

 

 

6,126

 

Income tax expense (benefit)

 

 

(575

)

 

 

1,613

 

 

 

2,072

 

 

 

1,814

 

 

 

1,346

 

Net income

 

$

1,346

 

 

$

5,421

 

 

$

6,466

 

 

$

5,756

 

 

$

4,780

 

Weighted average shares - basic

 

 

18,392,913

 

 

 

18,350,994

 

 

 

17,741,778

 

 

 

17,663,992

 

 

 

17,783,239

 

Weighted average shares - diluted

 

 

18,443,725

 

 

 

18,443,916

 

 

 

18,532,479

 

 

 

18,650,706

 

 

 

18,830,933

 

Net income per share, basic

 

$

0.07

 

 

$

0.30

 

 

$

0.36

 

 

$

0.33

 

 

$

0.27

 

Net income per share, diluted

 

 

0.07

 

 

 

0.29

 

 

 

0.35

 

 

 

0.31

 

 

 

0.25

 

Balance Sheet Data (at period end):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

91,450

 

 

$

101,269

 

 

$

154,021

 

 

$

156,085

 

 

$

120,321

 

Securities available-for-sale

 

 

219,213

 

 

 

213,129

 

 

 

203,500

 

 

 

194,957

 

 

 

233,691

 

Securities held-to-maturity

 

 

3,306

 

 

 

3,313

 

 

 

3,319

 

 

 

3,721

 

 

 

3,727

 

Loans held for sale

 

 

186,937

 

 

 

168,222

 

 

 

129,613

 

 

 

89,629

 

 

 

72,870

 

Total loans

 

 

1,446,835

 

 

 

1,420,102

 

 

 

1,411,768

 

 

 

1,440,617

 

 

 

1,467,786

 

Allowance for loan losses

 

 

(20,114

)

 

 

(12,604

)

 

 

(12,828

)

 

 

(12,903

)

 

 

(12,959

)

Total assets

 

 

2,072,585

 

 

 

2,037,201

 

 

 

2,033,911

 

 

 

2,018,421

 

 

 

2,035,811

 

Non-interest-bearing deposits

 

 

442,789

 

 

 

312,096

 

 

 

352,266

 

 

 

326,550

 

 

 

312,597

 

Interest-bearing deposits

 

 

1,320,920

 

 

 

1,417,355

 

 

 

1,379,497

 

 

 

1,396,220

 

 

 

1,366,205

 

Federal Home Loan Bank advances

 

 

10,000

 

 

 

10,000

 

 

 

10,000

 

 

 

10,000

 

 

 

75,000

 

Total liabilities

 

 

1,796,795

 

 

 

1,764,155

 

 

 

1,765,829

 

 

 

1,755,757

 

 

 

1,776,060

 

Shareholders' equity

 

$

275,790

 

 

$

273,046

 

 

$

268,082

 

 

$

262,664

 

 

$

259,751

 

Total shares of common stock outstanding

 

 

18,307,802

 

 

 

18,361,922

 

 

 

18,343,403

 

 

 

17,561,476

 

 

 

17,765,124

 

Total shares of preferred stock outstanding

 

 

 

 

 

 

 

 

 

 

 

878,048

 

 

 

878,048

 

Book value per share of common stock

 

$

15.06

 

 

$

14.87

 

 

$

14.61

 

 

$

14.44

 

 

$

14.11

 

Tangible book value per share of common stock *

 

 

12.66

 

 

 

12.45

 

 

 

12.17

 

 

 

11.87

 

 

 

11.55

 

Market value per share of common stock

 

$

9.89

 

 

$

16.65

 

 

$

16.58

 

 

$

15.15

 

 

$

14.44

 

Capital ratios:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total risk based capital

 

 

13.64

%

 

 

13.45

%

 

 

13.46

%

 

 

13.29

%

 

 

12.64

%

Tier 1 risk based capital

 

 

12.51

%

 

 

12.73

%

 

 

12.71

%

 

 

12.53

%

 

 

11.90

%

Common equity tier 1 capital

 

 

12.51

%

 

 

12.73

%

 

 

12.71

%

 

 

12.01

%

 

 

11.40

%

Leverage

 

 

11.19

%

 

 

11.37

%

 

 

11.24

%

 

 

11.01

%

 

 

10.97

%

_____________________

*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)

First Quarter 2020 Earnings Release

 

 

Five Quarter Comparison

 

 

 

3/31/20

 

 

12/31/19

 

 

9/30/19

 

 

6/30/19

 

 

3/31/19

 

Average Balance Sheet Data:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

114,272

 

 

$

115,100

 

 

$

129,114

 

 

$

93,523

 

 

$

83,689

 

Investment securities

 

 

226,537

 

 

 

225,265

 

 

 

211,460

 

 

 

228,283

 

 

 

251,631

 

Loans held for sale

 

 

180,401

 

 

 

140,731

 

 

 

101,835

 

 

 

91,585

 

 

 

66,880

 

Loans

 

 

1,421,256

 

 

 

1,431,027

 

 

 

1,445,755

 

 

 

1,469,210

 

 

 

1,461,696

 

Assets

 

 

2,059,306

 

 

 

2,030,231

 

 

 

2,005,950

 

 

 

2,004,207

 

 

 

1,988,478

 

Interest bearing deposits

 

 

1,411,666

 

 

 

1,388,496

 

 

 

1,370,988

 

 

 

1,364,211

 

 

 

1,299,205

 

Deposits

 

 

1,735,635

 

 

 

1,711,021

 

 

 

1,704,873

 

 

 

1,678,240

 

 

 

1,588,317

 

Federal Home Loan Bank advances

 

 

20,989

 

 

 

22,391

 

 

 

12,174

 

 

 

42,088

 

 

 

117,278

 

Liabilities

 

 

1,780,756

 

 

 

1,758,663

 

 

 

1,739,509

 

 

 

1,743,010

 

 

 

1,731,373

 

Shareholders' equity

 

 

278,550

 

 

 

271,568

 

 

 

266,441

 

 

 

261,197

 

 

 

257,105

 

Performance Ratios:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Annualized return on average assets

 

 

0.26

%

 

 

1.06

%

 

 

1.28

%

 

 

1.15

%

 

 

0.97

%

Annualized return on average equity

 

 

1.94

%

 

 

7.92

%

 

 

9.63

%

 

 

8.84

%

 

 

7.54

%

Net interest margin (1)

 

 

3.50

%

 

 

3.49

%

 

 

3.66

%

 

 

3.68

%

 

 

3.75

%

Annualized noninterest income to average assets

 

 

1.15

%

 

 

1.12

%

 

 

1.34

%

 

 

1.41

%

 

 

0.97

%

Efficiency ratio

 

 

63.06

%

 

 

68.46

%

 

 

64.87

%

 

 

68.51

%

 

 

67.74

%

Loans by Type (at period end):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial and industrial

 

$

447,311

 

 

$

394,408

 

 

$

382,816

 

 

$

404,745

 

 

$

419,941

 

Commercial real estate - owner occupied

 

 

166,652

 

 

 

172,456

 

 

 

169,370

 

 

 

173,316

 

 

 

170,558

 

Commercial real estate - non-owner occupied

 

 

378,170

 

 

 

387,443

 

 

 

407,378

 

 

 

421,496

 

 

 

403,443

 

Construction and development

 

 

141,087

 

 

 

143,111

 

 

 

132,222

 

 

 

123,901

 

 

 

162,237

 

Consumer real estate

 

 

248,243

 

 

 

256,097

 

 

 

254,736

 

 

 

255,043

 

 

 

248,943

 

Consumer

 

 

27,739

 

 

 

28,426

 

 

 

29,059

 

 

 

26,704

 

 

 

26,241

 

Other

 

 

37,633

 

 

 

38,161

 

 

 

36,187

 

 

 

35,412

 

 

 

36,423

 

Asset Quality Data:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Allowance for loan losses to total loans

 

 

1.39

%

 

 

0.89

%

 

 

0.91

%

 

 

0.90

%

 

 

0.88

%

Allowance for loan losses to non-performing loans

 

 

550

%

 

 

861

%

 

 

754

%

 

 

894

%

 

 

757

%

Nonaccrual loans

 

$

3,658

 

 

$

1,464

 

 

$

1,701

 

 

$

1,443

 

 

$

1,712

 

Troubled debt restructurings

 

 

1,306

 

 

 

2,717

 

 

 

2,725

 

 

 

1,238

 

 

 

1,255

 

Loans - over 89 days past due and accruing

 

 

399

 

 

 

38

 

 

 

551

 

 

 

302

 

 

 

-

 

Total non-performing loans

 

 

3,658

 

 

 

1,464

 

 

 

1,701

 

 

 

1,443

 

 

 

1,712

 

OREO and repossessed assets

 

 

147

 

 

 

1,044

 

 

 

914

 

 

 

914

 

 

 

1,038

 

Total non-performing assets

 

 

3,805

 

 

 

2,508

 

 

 

2,615

 

 

 

2,357

 

 

 

2,750

 

Non-performing loans to total loans

 

 

0.25

%

 

 

0.10

%

 

 

0.12

%

 

 

0.10

%

 

 

0.12

%

Non-performing assets to total assets

 

 

0.18

%

 

 

0.12

%

 

 

0.13

%

 

 

0.12

%

 

 

0.14

%

Non-performing assets to total loans and OREO

 

 

0.26

%

 

 

0.18

%

 

 

0.19

%

 

 

0.16

%

 

 

0.19

%

Annualized net charge-offs (recoveries) to average loans

 

 

0.01

%

 

 

0.06

%

 

 

(0.01

)%

 

 

0.02

%

 

 

0.01

%

Net charge-offs (recoveries)

 

$

43

 

 

$

224

 

 

$

(50

)

 

$

56

 

 

$

40

 

Interest Rates and Yields:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loans

 

 

5.10

%

 

 

5.24

%

 

 

5.48

%

 

 

5.44

%

 

 

5.49

%

Securities (1)

 

 

3.04

%

 

 

3.00

%