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)
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Tennessee |
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001-37886 |
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81-1527911 |
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(State or other jurisdiction of incorporation) |
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(Commission File Number) |
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(IRS Employer Identification No.)
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1201 Demonbreun Street, Suite 700 Nashville, Tennessee |
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37203 |
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(Address of principal executive offices) |
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(Zip Code) |
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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))
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Securities registered pursuant to Section 12(b) of the Exchange Act: |
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Title of each class |
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Trading Symbol(s) |
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Name of each exchange on which registered |
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Common Stock, $1.00 par value per share |
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CSTR |
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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.
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Exhibit Number |
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Description |
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Earnings release issued on July 23, 2020 by CapStar Financial Holdings, Inc. |
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99.2 |
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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.
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CAPSTAR FINANCIAL HOLDINGS, INC. |
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By: |
/s/ Michael J. Fowler |
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Michael J. Fowler |
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Chief Financial Officer |
Date: July 23, 2020
3
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
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• |
Allowance for loan losses to total loans was 1.32% at June 30, 2020 compared to 0.90% at June 30, 2019. |
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• |
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. |
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• |
Non-performing assets to total loans and OREO were 0.20% at June 30, 2020 compared to 0.16% at June 30, 2019. |
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• |
The leverage ratio was 10.08% at June 30, 2020 compared to 11.01% at June 30, 2019. |
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• |
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
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• |
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. |
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• |
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. |
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• |
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. |
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• |
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. |
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• |
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
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• |
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. |
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• |
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. |
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• |
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. |
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• |
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.
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
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Three Months Ended |
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Six Months Ended |
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June 30, |
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June 30, |
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2020 |
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2019 |
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2020 |
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2019 |
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Interest income: |
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|
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|
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|
|
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Loans, including fees |
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$ |
19,086 |
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$ |
20,999 |
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$ |
38,823 |
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$ |
41,591 |
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Securities: |
|
|
|
|
|
|
|
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|
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|
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Taxable |
|
|
1,096 |
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|
|
1,165 |
|
|
|
2,272 |
|
|
|
2,512 |
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Tax-exempt |
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312 |
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|
|
363 |
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|
|
633 |
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|
739 |
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Federal funds sold |
|
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— |
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|
|
6 |
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|
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— |
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25 |
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Restricted equity securities |
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140 |
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214 |
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282 |
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401 |
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Interest-bearing deposits in financial institutions |
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107 |
|
|
|
411 |
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|
|
469 |
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|
|
857 |
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Total interest income |
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|
20,741 |
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|
|
23,158 |
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|
|
42,479 |
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|
|
46,125 |
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Interest expense: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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Interest-bearing deposits |
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|
831 |
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|
|
1,827 |
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|
|
2,732 |
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|
|
3,420 |
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Savings and money market accounts |
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|
731 |
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1,782 |
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|
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2,283 |
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|
|
3,500 |
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Time deposits |
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|
1,416 |
|
|
|
2,217 |
|
|
|
2,897 |
|
|
|
4,030 |
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Federal funds purchased |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
4 |
|
|
Securities sold under agreements to repurchase |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
5 |
|
|
Federal Home Loan Bank advances |
|
|
88 |
|
|
|
324 |
|
|
|
231 |
|
|
|
1,156 |
|
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Total interest expense |
|
|
3,066 |
|
|
|
6,150 |
|
|
|
8,143 |
|
|
|
12,115 |
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|
Net interest income |
|
|
17,675 |
|
|
|
17,008 |
|
|
|
34,336 |
|
|
|
34,010 |
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Provision for loan losses |
|
|
1,624 |
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|
|
— |
|
|
|
9,177 |
|
|
|
886 |
|
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Net interest income after provision for loan losses |
|
|
16,051 |
|
|
|
17,008 |
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|
|
25,159 |
|
|
|
33,124 |
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Noninterest income: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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Treasury management and other deposit service charges |
|
|
691 |
|
|
|
813 |
|
|
|
1,466 |
|
|
|
1,611 |
|
|
Net gain (loss) on sale of securities |
|
|
13 |
|
|
|
(121 |
) |
|
|
40 |
|
|
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(108 |
) |
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Tri-Net fees |
|
|
1,260 |
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|
|
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 |
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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 |
|
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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 |
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|
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 |
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|
|
6/30/20 |
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|
3/31/20 |
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|
12/31/19 |
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|
9/30/19 |
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|
6/30/19 |
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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 |
|
|
117,830 |
|
||||||||||||||||