cstr-8k_20200723.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 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 July 23, 2020, CapStar Financial Holdings, Inc. (the “Company”) issued an earnings release announcing its financial results for the second quarter ended June 30, 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 9:00 a.m. (Central Time) on July 24, 2020 to discuss its financial results for the second quarter ended June 30, 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 July 23, 2020 by CapStar Financial Holdings, Inc.

99.2

 

Presentation for conference call to be conducted by CapStar Financial Holdings, Inc. on July 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/ Michael J. Fowler

 

Michael J. Fowler

 

Chief Financial Officer

 

 

 

Date: July 23, 2020

 

3

cstr-ex991_6.htm

Exhibit 99.1

EARNINGS RELEASE

 

CONTACT

 

Mike Fowler

Chief Financial Officer

(615) 732-7404

 

 

 

CapStar Financial Holdings, Inc. Reports Second Quarter 2020 Results

 

Strong Pre-tax Pre-provision Income led by Record Mortgage Results

 

NASHVILLE, TN, July 23, 2020 GlobeNewswire -- CapStar Financial Holdings, Inc. (“CapStar”) (NASDAQ:CSTR) today reported second quarter net income of $6.2 million and pre-tax pre-provision income of $9.6 million.  Diluted earnings per share were $0.34, an increase of $0.03 from the second quarter of 2019. Excluding merger-related charges, diluted operating(1) earnings per share were $0.36, a decline of $0.02 from the second quarter of 2019. Return on average assets and return on average equity for the second quarter of 2020 were 1.06% and 8.83%, respectively.  On an operating basis, return on average assets was 1.11% and return on average tangible common equity was 11.02%.  Net income for the quarter included provision for loan losses of $1.6 million, severance expense of $1.4 million, and merger related expenses of $448,000.

 

“I am proud of the CapStar team for their remarkable dedication during an extremely challenging operating environment,” said Timothy K. Schools, CapStar’s president and CEO.  “In keeping with our vision, mission and values, we have been unwavering in our commitment to support our employees, clients and communities through the public health crisis. Our non-financial center work force mobilized to working 100% remotely and continues to provide outstanding service. Importantly, we prioritized client assistance by offering loan deferrals and took a leadership position in facilitating PPP loans to protect all local business – both clients and non-clients – as they navigate the challenges presented by COVID-19.  Our inclusive and response-driven approach is supporting our communities and presents the prospect for many new and expanded relationships.”

 

“In the second quarter, we delivered solid financial results with strong pre-tax pre-provision revenue led by our mortgage and Tri-Net divisions,” continued Schools.  “During the quarter, we saw a significant rise in both loans related to PPP and in deposits which will bring short-term compression to our net interest margin and we continued to actively monitor our portfolio to identify potential weaknesses.  On July 1, we completed our merger with The Bank of Waynesboro and The First National Bank of Manchester, creating an approximately $3 billion financial institution which will enhance our funding profile, diversify our loan portfolio, expand our geographic reach, and improve our net interest margin, efficiency ratio, and return on assets."

 

Soundness

 

Allowance for loan losses to total loans was 1.32% at June 30, 2020 compared to 0.90% at June 30, 2019.

 

Annualized net charge-offs to average loans were 0.18% for the three months ended June 30, 2020 compared to 0.02% for the same period in 2019.

 

Non-performing assets to total loans and OREO were 0.20% at June 30, 2020 compared to 0.16% at June 30, 2019.

 

The leverage ratio was 10.08% at June 30, 2020 compared to 11.01% at June 30, 2019.

 

The total risk based capital ratio was 16.76% at June 30, 2020 compared to 13.29% at June 30, 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

 

Operating annualized return on average assets for the three months ended June 30, 2020 was 1.11% compared to 1.40% for the same period in 2019.

 

Operating annualized return on average tangible equity for the three months ended June 30, 2020 was 11.02% compared to 13.05% for the same period in 2019.

 

Net interest margin for the three months ended June 30, 2020 was 3.23% compared to 3.68% for the same period in 2019; approximately 17 bps of the decline is attributed to the impact of PPP loans and an increase in cash due to significant deposit growth during the quarter.

 

The operating efficiency ratio for the three months ended June 30, 2020 was 64.87% compared to 61.39% for the same period in 2019.

 

Operating annualized pre-tax pre-provision income to average assets for the three months ended June 30, 2020 was 1.71% compared to 1.86% for the same period in 2019.

 

Growth

 

Average deposits for the quarter ended June 30, 2020 increased 21.1% to $2.03 billion, compared to $1.68 billion for the same period in 2019.

 

Average gross loans for the quarter ended June 30, 2020 increased 6.3% to $1.56 billion, compared to $1.47 billion for the same period in 2019.

 

Pre-tax pre-provision earnings for the quarter ended June 30, 2020 increased 26.3% to $9.6 million, compared to $7.6 million for the quarter ended June 30, 2019.

 

Tangible book value per share for the quarter ended June 30, 2020 increased 9.7% to $13.02, compared to $11.87 for the quarter ended June 30, 2019.

 

Dividend

 

On July 23, 2020, the board of directors of CapStar approved a quarterly dividend of $0.05 per common share that will be paid on August 27, 2020 to shareholders of record of CapStar’s common stock as of the close of business on August 13, 2020.

 

Conference Call and Webcast Information

 

CapStar will host a conference call and webcast at 9:00 a.m. Central Time on Friday, July 24, 2020. 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 4376815. 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, 2020, on a consolidated basis, CapStar had total assets of $2.45 billion, gross loans of $1.59 billion, total deposits of $2.10 billion, and shareholders’ equity of $282.0 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 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)

Second quarter 2020 Earnings Release

 

 

Three Months Ended

 

 

Six Months Ended

 

 

 

June 30,

 

 

June 30,

 

 

 

2020

 

 

2019

 

 

2020

 

 

2019

 

Interest income:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loans, including fees

 

$

19,086

 

 

$

20,999

 

 

$

38,823

 

 

$

41,591

 

Securities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Taxable

 

 

1,096

 

 

 

1,165

 

 

 

2,272

 

 

 

2,512

 

Tax-exempt

 

 

312

 

 

 

363

 

 

 

633

 

 

 

739

 

Federal funds sold

 

 

 

 

 

6

 

 

 

 

 

 

25

 

Restricted equity securities

 

 

140

 

 

 

214

 

 

 

282

 

 

 

401

 

Interest-bearing deposits in financial institutions

 

 

107

 

 

 

411

 

 

 

469

 

 

 

857

 

Total interest income

 

 

20,741

 

 

 

23,158

 

 

 

42,479

 

 

 

46,125

 

Interest expense:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest-bearing deposits

 

 

831

 

 

 

1,827

 

 

 

2,732

 

 

 

3,420

 

Savings and money market accounts

 

 

731

 

 

 

1,782

 

 

 

2,283

 

 

 

3,500

 

Time deposits

 

 

1,416

 

 

 

2,217

 

 

 

2,897

 

 

 

4,030

 

Federal funds purchased

 

 

 

 

 

 

 

 

 

 

 

4

 

Securities sold under agreements to repurchase

 

 

 

 

 

 

 

 

 

 

 

5

 

Federal Home Loan Bank advances

 

 

88

 

 

 

324

 

 

 

231

 

 

 

1,156

 

Total interest expense

 

 

3,066

 

 

 

6,150

 

 

 

8,143

 

 

 

12,115

 

Net interest income

 

 

17,675

 

 

 

17,008

 

 

 

34,336

 

 

 

34,010

 

Provision for loan losses

 

 

1,624

 

 

 

 

 

 

9,177

 

 

 

886

 

Net interest income after provision for loan losses

 

 

16,051

 

 

 

17,008

 

 

 

25,159

 

 

 

33,124

 

Noninterest income:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Treasury management and other deposit service charges

 

 

691

 

 

 

813

 

 

 

1,466

 

 

 

1,611

 

Net gain (loss) on sale of securities

 

 

13

 

 

 

(121

)

 

 

40

 

 

 

(108

)

Tri-Net fees

 

 

1,260

 

 

 

1,024

 

 

 

1,860

 

 

 

1,664

 

Mortgage banking income

 

 

7,123

 

 

 

3,087

 

 

 

9,376

 

 

 

4,472

 

Wealth management fees

 

 

374

 

 

 

334

 

 

 

781

 

 

 

639

 

Interchange and debit card transaction fees

 

 

729

 

 

 

991

 

 

 

1,454

 

 

 

1,569

 

Other noninterest income

 

 

633

 

 

 

904

 

 

 

1,720

 

 

 

1,920

 

Total noninterest income

 

 

10,823

 

 

 

7,032

 

 

 

16,697

 

 

 

11,767

 

Noninterest expense:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Salaries and employee benefits

 

 

12,305

 

 

 

8,563

 

 

 

20,307

 

 

 

16,995

 

Data processing and software

 

 

2,100

 

 

 

1,862

 

 

 

3,964

 

 

 

3,336

 

Professional fees

 

 

581

 

 

 

501

 

 

 

1,216

 

 

 

1,043

 

Occupancy

 

 

797

 

 

 

809

 

 

 

1,616

 

 

 

1,692

 

Equipment

 

 

680

 

 

 

1,026

 

 

 

1,431

 

 

 

1,878

 

Regulatory fees

 

 

333

 

 

 

272

 

 

 

496

 

 

 

546

 

Merger related expenses

 

 

448

 

 

 

1,711

 

 

 

738

 

 

 

2,305

 

Amortization of intangibles

 

 

375

 

 

 

419

 

 

 

761

 

 

 

850

 

Other operating

 

 

1,315

 

 

 

1,307

 

 

 

2,616

 

 

 

2,551

 

Total noninterest expense

 

 

18,934

 

 

 

16,470

 

 

 

33,145

 

 

 

31,196

 

Income before income taxes

 

 

7,940

 

 

 

7,570

 

 

 

8,711

 

 

 

13,695

 

Income tax expense

 

 

1,759

 

 

 

1,814

 

 

 

1,184

 

 

 

3,160

 

Net income

 

$

6,181

 

 

$

5,756

 

 

$

7,527

 

 

$

10,535

 

Per share information:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic net income per share of common stock

 

$

0.34

 

 

$

0.33

 

 

$

0.41

 

 

$

0.59

 

Diluted net income per share of common stock

 

$

0.34

 

 

$

0.31

 

 

$

0.41

 

 

$

0.56

 

Weighted average shares outstanding:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

 

18,307,083

 

 

 

17,663,992

 

 

 

18,349,998

 

 

 

17,723,286

 

Diluted

 

 

18,320,006

 

 

 

18,650,706

 

 

 

18,381,866

 

 

 

18,740,322

 

 

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)

Second quarter 2020 Earnings Release

 

 

Five Quarter Comparison

 

 

 

6/30/20

 

 

3/31/20

 

 

12/31/19

 

 

9/30/19

 

 

6/30/19

 

Income Statement Data:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net interest income

 

$

17,675

 

 

$

16,661

 

 

$

16,581

 

 

$

17,156

 

 

$

17,008

 

Provision for loan losses

 

 

1,624

 

 

 

7,553

 

 

 

 

 

 

(125

)

 

 

 

Net interest income after provision for loan losses

 

 

16,051

 

 

 

9,108

 

 

 

16,581

 

 

 

17,281

 

 

 

17,008

 

Treasury management and other deposit service charges

 

 

691

 

 

 

775

 

 

 

736

 

 

 

788

 

 

 

813

 

Net gain (loss) on sale of securities

 

 

13

 

 

 

27

 

 

 

9

 

 

 

 

 

 

(121

)

Tri-Net fees

 

 

1,260

 

 

 

599

 

 

 

274

 

 

 

847

 

 

 

1,024

 

Mortgage banking income

 

 

7,123

 

 

 

2,253

 

 

 

2,316

 

 

 

2,679

 

 

 

3,087

 

Wealth management fees

 

 

374

 

 

 

407

 

 

 

407

 

 

 

379

 

 

 

334

 

Interchange and debit card transaction fees

 

 

729

 

 

 

724

 

 

 

928

 

 

 

754

 

 

 

991

 

Other noninterest income

 

 

633

 

 

 

1,089

 

 

 

1,049

 

 

 

1,341

 

 

 

904

 

Total noninterest income

 

 

10,823

 

 

 

5,874

 

 

 

5,719

 

 

 

6,788

 

 

 

7,032

 

Salaries and employee benefits

 

 

12,305

 

 

 

8,002

 

 

 

9,318

 

 

 

9,229

 

 

 

8,563

 

Data processing and software

 

 

2,100

 

 

 

1,864

 

 

 

1,835

 

 

 

1,790

 

 

 

1,862

 

Professional fees

 

 

581

 

 

 

636

 

 

 

531

 

 

 

528

 

 

 

501

 

Occupancy

 

 

797

 

 

 

820

 

 

 

795

 

 

 

858

 

 

 

809

 

Equipment

 

 

680

 

 

 

751

 

 

 

834

 

 

 

1,012

 

 

 

1,026

 

Regulatory fees

 

 

333

 

 

 

163

 

 

 

28

 

 

 

18

 

 

 

272

 

Merger related expenses

 

 

448

 

 

 

290

 

 

 

163

 

 

 

187

 

 

 

1,711

 

Amortization of intangibles

 

 

375

 

 

 

386

 

 

 

397

 

 

 

408

 

 

 

419

 

Other operating

 

 

1,315

 

 

 

1,299

 

 

 

1,365

 

 

 

1,501

 

 

 

1,307

 

Total noninterest expense

 

 

18,934

 

 

 

14,211

 

 

 

15,266

 

 

 

15,531

 

 

 

16,470

 

Net income before income tax expense

 

 

7,940

 

 

 

771

 

 

 

7,034

 

 

 

8,538

 

 

 

7,570

 

Income tax (benefit) expense

 

 

1,759

 

 

 

(575

)

 

 

1,613

 

 

 

2,072

 

 

 

1,814

 

Net income

 

$

6,181

 

 

$

1,346

 

 

$

5,421

 

 

$

6,466

 

 

$

5,756

 

Weighted average shares - basic

 

 

18,307,083

 

 

 

18,392,913

 

 

 

18,350,994

 

 

 

17,741,778

 

 

 

17,663,992

 

Weighted average shares - diluted

 

 

18,320,006

 

 

 

18,443,725

 

 

 

18,443,916

 

 

 

18,532,479

 

 

 

18,650,706

 

Net income per share, basic

 

$

0.34

 

 

$

0.07

 

 

$

0.30

 

 

$

0.36

 

 

$

0.33

 

Net income per share, diluted

 

 

0.34

 

 

 

0.07

 

 

 

0.29

 

 

 

0.35

 

 

 

0.31

 

Balance Sheet Data (at period end):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

368,820

 

 

$

91,450

 

 

$

101,269

 

 

$

154,021

 

 

$

156,085

 

Securities available-for-sale

 

 

223,034

 

 

 

219,213

 

 

 

213,129

 

 

 

203,500

 

 

 

194,957

 

Securities held-to-maturity

 

 

2,699

 

 

 

3,306

 

 

 

3,313

 

 

 

3,319

 

 

 

3,721

 

Loans held for sale

 

 

129,807

 

 

 

186,937

 

 

 

168,222

 

 

 

129,613

 

 

 

89,629

 

Total loans

 

 

1,592,725

 

 

 

1,446,835

 

 

 

1,420,102

 

 

 

1,411,768

 

 

 

1,440,617

 

Allowance for loan losses

 

 

(21,035

)

 

 

(20,114

)

 

 

(12,604

)

 

 

(12,828

)

 

 

(12,903

)

Total assets

 

 

2,445,172

 

 

 

2,072,585

 

 

 

2,037,201

 

 

 

2,033,911

 

 

 

2,018,421

 

Non-interest-bearing deposits

 

 

546,974

 

 

 

442,789

 

 

 

312,096

 

 

 

352,266

 

 

 

326,550

 

Interest-bearing deposits

 

 

1,548,591

 

 

 

1,320,920

 

 

 

1,417,355

 

 

 

1,379,497

 

 

 

1,396,220

 

Federal Home Loan Bank advances and other borrowings

 

 

39,464

 

 

 

10,000

 

 

 

10,000

 

 

 

10,000

 

 

 

10,000

 

Total liabilities

 

 

2,163,222

 

 

 

1,796,795

 

 

 

1,764,155

 

 

 

1,765,829

 

 

 

1,755,757

 

Shareholders' equity

 

$

281,950

 

 

$

275,790

 

 

$

273,046

 

 

$

268,082

 

 

$

262,664

 

Total shares of common stock outstanding

 

 

18,302,188

 

 

 

18,307,802

 

 

 

18,361,922

 

 

 

18,343,403

 

 

 

17,561,476

 

Total shares of preferred stock outstanding

 

 

 

 

 

 

 

 

 

 

 

 

 

 

878,048

 

Book value per share of common stock

 

$

15.41

 

 

$

15.06

 

 

$

14.87

 

 

$

14.61

 

 

$

14.44

 

Tangible book value per share of common stock*

 

 

13.02

 

 

 

12.66

 

 

 

12.45

 

 

 

12.17

 

 

 

11.87

 

Market value per share of common stock

 

$

12.00

 

 

$

9.89

 

 

$

16.65

 

 

$

16.58

 

 

$

15.15

 

Capital ratios:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total risk based capital

 

 

16.76

%

 

 

13.68

%

 

 

13.45

%

 

 

13.46

%

 

 

13.29

%

Tier 1 risk based capital

 

 

13.76

%

 

 

12.56

%

 

 

12.73

%

 

 

12.71

%

 

 

12.53

%

Common equity tier 1 capital

 

 

13.76

%

 

 

12.56

%

 

 

12.73

%

 

 

12.71

%

 

 

12.01

%

Leverage

 

 

10.08

%

 

 

11.23

%

 

 

11.37

%

 

 

11.24

%

 

 

11.01

%

_____________________

*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)

Second quarter 2020 Earnings Release

 

 

Five Quarter Comparison

 

 

 

6/30/20

 

 

3/31/20

 

 

12/31/19

 

 

9/30/19

 

 

6/30/19

 

Average Balance Sheet Data:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

257,709

 

 

$

114,272

 

 

$

115,100

 

 

$

129,114

 

 

$

93,523

 

Investment securities

 

 

238,762

 

 

 

226,537

 

 

 

225,265

 

 

 

211,460

 

 

 

228,283

 

Loans held for sale

 

 

176,193

 

 

 

180,401

 

 

 

140,731

 

 

 

101,835

 

 

 

91,585

 

Loans

 

 

1,560,626

 

 

 

1,421,256

 

 

 

1,431,027

 

 

 

1,445,755

 

 

 

1,469,210

 

Assets

 

 

2,350,021

 

 

 

2,059,306

 

 

 

2,030,231

 

 

 

2,005,950

 

 

 

2,004,207

 

Interest bearing deposits

 

 

1,519,877

 

 

 

1,411,666

 

 

 

1,388,496

 

 

 

1,370,988

 

 

 

1,364,211

 

Deposits

 

 

2,031,924

 

 

 

1,735,635

 

 

 

1,711,021

 

 

 

1,704,873

 

 

 

1,678,240

 

Federal Home Loan Bank advances and other borrowings

 

 

10,966

 

 

 

20,989

 

 

 

22,391

 

 

 

12,174

 

 

 

42,088

 

Liabilities

 

 

2,068,408

 

 

 

1,780,756

 

 

 

1,758,663

 

 

 

1,739,509

 

 

 

1,743,010

 

Shareholders' equity

 

 

281,614

 

 

 

278,550

 

 

 

271,568

 

 

 

266,441

 

 

 

261,197

 

Performance Ratios:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Annualized return on average assets

 

 

1.06

%

 

 

0.26

%

 

 

1.06

%

 

 

1.28

%

 

 

1.15

%

Annualized return on average equity

 

 

8.83

%

 

 

1.94

%

 

 

7.92

%

 

 

9.63

%

 

 

8.84

%

Net interest margin (1)

 

 

3.23

%

 

 

3.50

%

 

 

3.49

%

 

 

3.66

%

 

 

3.68

%

Annualized Noninterest income to average assets

 

 

1.85

%

 

 

1.15

%

 

 

1.12

%

 

 

1.34

%

 

 

1.41

%

Efficiency ratio

 

 

66.44

%

 

 

63.06

%

 

 

68.46

%

 

 

64.87

%

 

 

68.51

%

Loans by Type (at period end):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial and industrial

 

$

621,541

 

 

$

447,311

 

 

$

394,408

 

 

$

382,816

 

 

$

404,745

 

Commercial real estate - owner occupied

 

 

147,682

 

 

 

166,652

 

 

 

172,456

 

 

 

169,370

 

 

 

173,316

 

Commercial real estate - non-owner occupied

 

 

408,402

 

 

 

378,170

 

 

 

387,443

 

 

 

407,378

 

 

 

421,496

 

Construction and development