cstr-8k_20210128.htm
false 0001676479 0001676479 2021-01-28 2021-01-28

 

 

 

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 28, 2021

______________________________


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

 

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.

 

 

 

 

 


 

 

 

Section 2 – Financial Information

 

Item 2.02.  Results of Operations and Financial Condition.

 

On January 28, 2021, CapStar Financial Holdings, Inc. (the “Company”) issued an earnings release announcing its financial results for the fourth quarter ended December 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 9:00 a.m. (Central Time) on January 29, 2021 to discuss its financial results for the fourth quarter ended December 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 January 28, 2021 by CapStar Financial Holdings, Inc.

99.2

 

Presentation for conference call to be conducted by CapStar Financial Holdings, Inc. on January 29, 2021.

104

 

Cover Page Interactive Data File (embedded within the Inline XBRL document).

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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/ Denis J. Duncan

 

Denis J. Duncan

 

Chief Financial Officer

 

 

 

Date: January 28, 2021

 

3

cstr-ex991_6.htm

Exhibit 99.1

EARNINGS RELEASE

 

CONTACT

 

Denis J. Duncan

Chief Financial Officer

(615) 732-7492

 

 

 

CapStar Financial Holdings, Inc. Reports Year End 2020 Results

 

 

NASHVILLE, TN, January 28, 2021 GlobeNewswire -- CapStar Financial Holdings, Inc. (“CapStar”) (NASDAQ:CSTR) today reported net income of $9.7 million or $0.44 per diluted share, for the quarter ended December 31, 2020, compared with net income of $5.4 million or $0.29 per diluted share, for the quarter ended December 31, 2019. Annualized return on average assets and return on average equity for the quarter ended December 31, 2020 was 1.27% and 11.30%, respectively. Excluding fourth quarter merger-related charges of $2.1 million, operating(1) diluted earnings per share were $0.51, return on average assets was 1.48%, and return on average tangible equity was 15.38%.  

 

For the year ended December 31, 2020, the company reported net income of $24.7 million or $1.22 per diluted share compared with net income of $22.4 million, or $1.20 per diluted share, for the year ended December 31, 2019. Return on average assets and return on average equity for the year ended December 31, 2020 was 0.94% and 9.55%, respectively. Excluding merger-related charges of $5.4 million, operating(1) diluted earnings per share were $1.42, return on average assets was 1.09%, and return on average tangible equity was 11.09%.  

 

“I would like to thank our employees for their tireless work over the past year in helping our clients and communities,” said Timothy K. Schools, chief executive officer. “As a result of their tremendous efforts and our solid risk management culture in a challenging and uncertain operating environment, we are pleased to report strong 2020 and fourth quarter financial results, led by high performance in our mortgage and tri-net divisions. During the year, we made progress in advancing several strategic initiatives, including the continued refocus on providing core banking services to our local markets, integrating and expanding our recent East Tennessee expansion with the addition of Knoxville and completion of our FCB acquisition, and strengthening our balance sheet management capabilities. Importantly, as part of our mission, we made extra efforts to support our employees, clients, and communities as we all manage through the current pandemic. We are proud to have maintained full employment and compensation, offer flexible work programs, and participate in loan assistance and deferral programs. Together, with our client-centric banking model, stable and growing markets, and key strategic initiatives, we are optimistic about our future prospects and enhanced opportunities to serve our clients.”

 

Profitability

 

Annualized return on average assets for the three months ended December 31, 2020 was 1.27% compared to 1.06% for the same period in 2019. Operating(1) annualized return on average assets for the three months ended December 31, 2020 was 1.48% compared to 1.08% for the same period in 2019. Operating(1) annualized pre-tax pre-provision income to average assets for the three months ended December 31, 2020 was 1.93% compared to 1.41% for the same period in 2019.

 

Annualized return on average equity for the three months ended December 31, 2020 was 11.30% compared to 7.92% for the same period in 2019. Operating(1) annualized return on average tangible equity for the three months ended December 31, 2020 was 15.38% compared to 9.69% for the same period in 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.


 

 

Net interest margin was 3.12% for the three months ended December 31, 2020 compared to 3.49% for the same period in 2019.

 

The efficiency ratio for the three months ended December 31, 2020 was 63.02% compared to 68.46% for the same period in 2019. The operating(1) efficiency ratio for the three months ended December 31, 2020 was 56.85% compared to 67.73% for the same period in 2019.

 

Growth

 

Pre-tax pre-provision earnings for the quarter ended December 31, 2020 increased 79% to $12.6 million, compared to $7.0 million for the quarter ended December 31, 2019.

 

End of period deposits for the quarter ended December 31, 2020 decreased $49.5 million or 8% annualized.

 

Excluding PPP loans, end of period loan growth for the quarter ended December 31, 2020, was $19.61 million or 5% annualized.

 

Tangible book value per share for the quarter ended December 31, 2020 increased 7% to $13.36, compared to $12.45 for the quarter ended December 31, 2019.

 

Soundness

 

The total risk-based capital ratio was 16.03% at December 31, 2020 compared to 13.45% at December 31, 2019.

 

The allowance for loan losses to total loans was 1.23% at December 31, 2020 compared to 0.89% at December 31, 2019. The allowance for loan losses plus the fair value mark on acquired loans to total loans, less PPP loans, was 1.57% at December 31, 2020 compared to 1.13% at December 31, 2019.

 

Non-performing assets to total loans and OREO were 0.28% at December 31, 2020 compared to 0.18% at December 31, 2019.

 

Annualized net charge offs to average loans were 0.02% for the three months ended December 31, 2020 compared to 0.06% for the same period in 2019.

 

Dividend

 

On January 28, 2021, the board of directors of CapStar approved a quarterly dividend of $0.05 per common share that will be paid on February 24, 2021 to shareholders of record of CapStar’s common stock as of the close of business on February 10, 2021.

 

Conference Call and Webcast Information

 

CapStar will host a conference call and webcast at 9:00 a.m. Central Time on Friday, January 29, 2021. During the call, management will review the third quarter results and operational highlights. Interested parties may listen to the call by dialing (844) 412-1002. The conference ID number is 1963565. 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, 2020, on a consolidated basis, CapStar had total assets of $2.98 billion, total loans of $1.89 billion, total deposits of $2.57 billion, and shareholders’ equity of $343.49 million. Visit www.capstarbank.com for more information.


 

FORWARD-LOOKING STATEMENTS

All statements, other than statements of historical fact, included in this release and any oral statements made regarding the subject of this release, including in the conference call referenced herein, that address activities, events or developments that the Company expects, believes or anticipates will or may occur in the future are “forward-looking statements“ within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1955. The words “expect“, “anticipate”, “intend”, “may”, “should”, “plan”, “believe”, “seek“, “estimate“ and similar expressions are intended to identify such forward-looking statements, but other statements not based on historical information may also be considered forward-looking statements. These forward-looking statements are subject to known and unknown risks, uncertainties and other factors that could cause the actual results to differ materially from the statements, including, but not limited to: (I) deterioration in the financial condition of borrowers of the Company and its subsidiaries, resulting in significant increases in loan losses and provisions for those losses; (II) the effects of the emergence of widespread health emergencies or pandemics, including the magnitude and duration of the Covid-19 pandemic and its impact on general economic and financial market conditions and on the Company’s customer’s business, results of operations, asset quality and financial condition; (III) the ability to grow and retain low-cost, core deposits and retain large, uninsured deposits, including during times when the Company is seeking to lower rates it pays on deposits; (IV) the impact of competition with other financial institutions, including pricing pressures and the resulting impact on the Company’s results, including as a result of compression to net interest margin; (V) fluctuations or differences in interest rates on loans or deposits from those that the Company is modeling or anticipating, including as a result of the Company’s inability to better match deposit rates with the changes in the short term rate environment, or that affect the yield curve; (VI) difficulties and delays in integrating required businesses or fully realizing cost savings or other benefits from acquisitions; (VII) the Company‘s ability to profitably grow its business and successfully execute on its business plans; (VIII) any matter that would cause the Company to conclude that there was impairment of any asset, including goodwill or other intangible assets; (IX) the vulnerability of the Company’s network and online banking portals, and the systems of customers or parties with whom the Company contracts, to unauthorized access, computer viruses, phishing schemes, spam attacks, human error, natural disasters, power loss and other security breaches; (X) the availability of and access to capital; (XI) adverse results (including costs, fines, reputational harm, inability to obtain necessary approvals, and/or other negative affects) from current or future litigation, regulatory examinations or other legal and/or regulatory actions, including as a result of the Company’s participation in and execution of government programs related to the Covid-19 pandemic; and (XII) general competitive, economic, political and market conditions. Additional factors which could affect the forward-looking statements can be found in the Company’s Annual Report on Form 10-K, Quarterly Reports on Form 10-Q, and Current Reports on Form 8-K, filed with the SEC. The Company disclaims any obligation to update or revise any forward-looking statements contained in this press release (we speak only as of the date hereof), whether as a result of new information, future events, or otherwise.

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)

Fourth quarter 2020 Earnings Release

 

 

Three Months Ended

 

 

Year Ended

 

 

 

December 31,

 

 

December 31,

 

 

 

2020

 

 

2019

 

 

2020

 

 

2019

 

Interest income:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loans, including fees

 

$

22,653

 

 

$

20,233

 

 

$

84,272

 

 

$

82,828

 

Securities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Taxable

 

 

1,412

 

 

 

1,077

 

 

 

4,863

 

 

 

4,619

 

Tax-exempt

 

 

354

 

 

 

347

 

 

 

1,342

 

 

 

1,438

 

Federal funds sold

 

 

 

 

 

 

 

 

 

 

 

26

 

Restricted equity securities

 

 

155

 

 

 

171

 

 

 

576

 

 

 

755

 

Interest-bearing deposits in financial institutions

 

 

158

 

 

 

377

 

 

 

799

 

 

 

1,881

 

Total interest income

 

 

24,732

 

 

 

22,205

 

 

 

91,852

 

 

 

91,547

 

Interest expense:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest-bearing deposits

 

 

497

 

 

 

2,015

 

 

 

3,868

 

 

 

7,538

 

Savings and money market accounts

 

 

377

 

 

 

1,821

 

 

 

5,196

 

 

 

7,266

 

Time deposits

 

 

1,121

 

 

 

1,626

 

 

 

5,317

 

 

 

7,542

 

Federal funds purchased

 

 

 

 

 

 

 

 

 

 

 

4

 

Securities sold under agreements to repurchase

 

 

 

 

 

 

 

 

 

 

 

5

 

Federal Home Loan Bank advances

 

 

8

 

 

 

162

 

 

 

356

 

 

 

1,444

 

Subordinated notes

 

 

398

 

 

 

 

 

 

792

 

 

 

 

Total interest expense

 

 

2,401

 

 

 

5,624

 

 

 

15,529

 

 

 

23,799

 

Net interest income

 

 

22,331

 

 

 

16,581

 

 

 

76,323

 

 

 

67,748

 

Provision for loan losses

 

 

184

 

 

 

 

 

 

11,479

 

 

 

761

 

Net interest income after provision for loan losses

 

 

22,147

 

 

 

16,581

 

 

 

64,844

 

 

 

66,987

 

Noninterest income:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Treasury management and other deposit service charges

 

 

964

 

 

 

736

 

 

 

3,494

 

 

 

3,135

 

Interchange and debit card transaction fees

 

 

782

 

 

 

928

 

 

 

3,172

 

 

 

3,251

 

Mortgage banking income

 

 

5,971

 

 

 

2,316

 

 

 

25,034

 

 

 

9,467

 

Tri-Net fees

 

 

1,165

 

 

 

274

 

 

 

3,693

 

 

 

2,785

 

Wealth management fees

 

 

411

 

 

 

407

 

 

 

1,573

 

 

 

1,425

 

Net gain (loss) on Sale of SBA Loans

 

 

916

 

 

 

(20

)

 

 

1,440

 

 

 

803

 

Net gain (loss) on sale of securities

 

 

51

 

 

 

9

 

 

 

125

 

 

 

(99

)

Other noninterest income

 

 

1,488

 

 

 

1,069

 

 

 

4,717

 

 

 

3,507

 

Total noninterest income

 

 

11,748

 

 

 

5,719

 

 

 

43,248

 

 

 

24,274

 

Noninterest expense:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Salaries and employee benefits

 

 

11,996

 

 

 

9,318

 

 

 

45,252

 

 

 

35,542

 

Data processing and software

 

 

2,548

 

 

 

1,835

 

 

 

8,865

 

 

 

6,961

 

Professional fees

 

 

370

 

 

 

531

 

 

 

2,224

 

 

 

2,102

 

Occupancy

 

 

975

 

 

 

795

 

 

 

3,590

 

 

 

3,345

 

Equipment

 

 

900

 

 

 

834

 

 

 

3,195

 

 

 

3,723

 

Regulatory fees

 

 

368

 

 

 

28

 

 

 

1,261

 

 

 

591

 

Merger related expenses

 

 

2,105

 

 

 

163

 

 

 

5,390

 

 

 

2,654

 

Amortization of intangibles

 

 

524

 

 

 

397

 

 

 

1,824

 

 

 

1,655

 

Other operating

 

 

1,692

 

 

 

1,365

 

 

 

5,760

 

 

 

5,422

 

Total noninterest expense

 

 

21,478

 

 

 

15,266

 

 

 

77,361

 

 

 

61,995

 

Income before income taxes

 

 

12,417

 

 

 

7,034

 

 

 

30,731

 

 

 

29,266

 

Income tax expense

 

 

2,736

 

 

 

1,613

 

 

 

6,035

 

 

 

6,844

 

Net income

 

$

9,681

 

 

$

5,421

 

 

$

24,696

 

 

$

22,422

 

Per share information:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic net income per share of common stock

 

$

0.44

 

 

$

0.30

 

 

$

1.22

 

 

$

1.25

 

Diluted net income per share of common stock

 

$

0.44

 

 

$

0.29

 

 

$

1.22

 

 

$

1.20

 

Weighted average shares outstanding:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

 

21,960,184

 

 

 

18,350,994

 

 

 

20,162,038

 

 

 

17,886,164

 

Diluted

 

 

21,978,925

 

 

 

18,443,916

 

 

 

20,185,589

 

 

 

18,613,224

 

 

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 2020 Earnings Release

 

 

Five Quarter Comparison

 

 

 

12/31/20

 

 

9/30/20

 

 

6/30/20

 

 

3/31/20

 

 

12/31/19

 

Income Statement Data:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net interest income

 

$

22,331

 

 

$

19,656

 

 

$

17,675

 

 

$

16,661

 

 

$

16,581

 

Provision for loan losses

 

 

184

 

 

 

2,119

 

 

 

1,624

 

 

 

7,553

 

 

 

 

Net interest income after provision for loan losses

 

 

22,147

 

 

 

17,537

 

 

 

16,051

 

 

 

9,108

 

 

 

16,581

 

Treasury management and other deposit service charges

 

 

964

 

 

 

1,064

 

 

 

691

 

 

 

775

 

 

 

736

 

Interchange and debit card transaction fees

 

 

782

 

 

 

936

 

 

 

729

 

 

 

724

 

 

 

928

 

Mortgage banking income

 

 

5,971

 

 

 

9,686

 

 

 

7,123

 

 

 

2,253

 

 

 

2,316

 

Tri-Net fees

 

 

1,165

 

 

 

668

 

 

 

1,260

 

 

 

599

 

 

 

274

 

Wealth management fees

 

 

411

 

 

 

382

 

 

 

374

 

 

 

407

 

 

 

407

 

Net gain (loss) on Sale of SBA Loans

 

 

916

 

 

 

476

 

 

 

13

 

 

 

35

 

 

 

(20

)

Net gain on sale of securities

 

 

51

 

 

 

34

 

 

 

13

 

 

 

27

 

 

 

9

 

Other noninterest income

 

 

1,488

 

 

 

1,558

 

 

 

620

 

 

 

1,054

 

 

 

1,069

 

Total noninterest income

 

 

11,748

 

 

 

14,804

 

 

 

10,823

 

 

 

5,874

 

 

 

5,719

 

Salaries and employee benefits

 

 

11,996

 

 

 

12,949

 

 

 

12,305

 

 

 

8,002

 

 

 

9,318

 

Data processing and software

 

 

2,548

 

 

 

2,353

 

 

 

2,100

 

 

 

1,864

 

 

 

1,835

 

Professional fees

 

 

370

 

 

 

638

 

 

 

581

 

 

 

636

 

 

 

531

 

Occupancy

 

 

975

 

 

 

999

 

 

 

797

 

 

 

820

 

 

 

795

 

Equipment

 

 

900

 

 

 

864

 

 

 

680

 

 

 

751

 

 

 

834

 

Regulatory fees

 

 

368

 

 

 

397

 

 

 

333

 

 

 

163

 

 

 

28

 

Merger related expenses

 

 

2,105

 

 

 

2,548

 

 

 

448

 

 

 

290

 

 

 

163

 

Amortization of intangibles

 

 

524

 

 

 

539

 

 

 

375

 

 

 

386

 

 

 

397

 

Other operating

 

 

1,692

 

 

 

1,452

 

 

 

1,315

 

 

 

1,299

 

 

 

1,365

 

Total noninterest expense

 

 

21,478

 

 

 

22,739

 

 

 

18,934

 

 

 

14,211

 

 

 

15,266

 

Net income before income tax expense

 

 

12,417

 

 

 

9,602

 

 

 

7,940

 

 

 

771

 

 

 

7,034

 

Income tax (benefit) expense

 

 

2,736

 

 

 

2,115

 

 

 

1,759

 

 

 

(575

)

 

 

1,613

 

Net income

 

$

9,681

 

 

$

7,487

 

 

$

6,181

 

 

$

1,346

 

 

$

5,421

 

Weighted average shares - basic

 

 

21,960,184

 

 

 

21,948,579

 

 

 

18,307,083

 

 

 

18,392,913

 

 

 

18,350,994

 

Weighted average shares - diluted

 

 

21,978,925

 

 

 

21,960,490

 

 

 

18,320,006

 

 

 

18,443,725

 

 

 

18,443,916

 

Net income per share, basic

 

$

0.44

 

 

$

0.34

 

 

$

0.34

 

 

$

0.07

 

 

$

0.30

 

Net income per share, diluted

 

 

0.44

 

 

 

0.34

 

 

 

0.34

 

 

 

0.07

 

 

 

0.29

 

Balance Sheet Data (at period end):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

277,439

 

 

$

455,925

 

 

$

368,820

 

 

$

91,450

 

 

$

101,269

 

Securities available-for-sale

 

 

486,215

 

 

 

308,337

 

 

 

223,034

 

 

 

219,213

 

 

 

213,129

 

Securities held-to-maturity

 

 

2,407

 

 

 

2,413

 

 

 

2,699

 

 

 

3,306

 

 

 

3,313

 

Loans held for sale

 

 

179,669

 

 

 

198,603

 

 

 

129,807

 

 

 

186,937

 

 

 

168,222

 

Total loans

 

 

1,891,019

 

 

 

1,906,603

 

 

 

1,592,725

 

 

 

1,446,835

 

 

 

1,420,102

 

Allowance for loan losses

 

 

(23,245

)

 

 

(23,167

)

 

 

(21,035

)

 

 

(20,114

)

 

 

(12,604

)

Total assets

 

 

2,984,102

 

 

 

3,024,348

 

 

 

2,445,172

 

 

 

2,072,585

 

 

 

2,037,201

 

Non-interest-bearing deposits

 

 

662,934

 

 

 

716,707

 

 

 

546,974

 

 

 

442,789

 

 

 

312,096

 

Interest-bearing deposits

 

 

1,905,067

 

 

 

1,900,835

 

 

 

1,548,592

 

 

 

1,320,920

 

 

 

1,417,355

 

Federal Home Loan Bank advances and borrowings

 

 

39,423

 

 

 

39,418

 

 

 

39,464

 

 

 

10,000

 

 

 

10,000

 

Total liabilities

 

 

2,640,616

 

 

 

2,690,453

 

 

 

2,163,222

 

 

 

1,796,795

 

 

 

1,764,155

 

Shareholders' equity

 

$

343,486

 

 

$

333,895

 

 

$

281,950

 

 

$

275,790

 

 

$

273,046

 

Total shares of common stock outstanding

 

 

21,988,803

 

 

 

21,947,805

 

 

 

18,302,188

 

 

 

18,307,802

 

 

 

18,361,922

 

Book value per share of common stock

 

$

15.62

 

 

$

15.21

 

 

$

15.41

 

 

$

15.06

 

 

$

14.87

 

Tangible book value per share of common stock *

 

 

13.36

 

 

 

12.92

 

 

 

13.02

 

 

 

12.66

 

 

 

12.45

 

Market value per common share

 

 

14.75

 

 

 

9.81

 

 

 

12.00

 

 

 

9.89

 

 

 

16.65

 

Capital ratios:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total risk based capital

 

 

16.03

%

 

 

15.96

%

 

 

16.76

%

 

 

13.68

%

 

 

13.45

%

Tier 1 risk based capital

 

 

13.52

%

 

 

13.39

%

 

 

13.76

%

 

 

12.56

%

 

 

12.73

%

Common equity tier 1 capital

 

 

13.52

%

 

 

13.39

%

 

 

13.76

%

 

 

12.56

%

 

 

12.73

%

Leverage

 

 

9.60

%

 

 

9.23

%

 

 

10.08

%

 

 

11.23

%

 

 

11.37

%

_____________________

*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 2020 Earnings Release

 

 

Five Quarter Comparison

 

 

 

12/31/20

 

 

9/30/20

 

 

6/30/20

 

 

3/31/20

 

 

12/31/19

 

Average Balance Sheet Data:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

427,086

 

 

$

526,409

 

 

$

257,709

 

 

$

114,272

 

 

$

115,100

 

Investment securities

 

 

407,622

 

 

 

323,689

 

 

 

238,762

 

 

 

226,537

 

 

 

225,265

 

Loans held for sale

 

 

165,441

 

 

 

156,123

 

 

 

176,193

 

 

 

180,401

 

 

 

140,731

 

Loans

 

 

1,891,202

 

 

 

1,906,449

 

 

 

1,560,626

 

 

 

1,421,256

 

 

 

1,431,027

 

Assets

 

 

3,028,225

 

 

 

3,043,847

 

 

 

2,350,021

 

 

 

2,059,306

 

 

 

2,030,231

 

Interest bearing deposits

 

 

1,909,692

 

 

 

1,957,259

 

 

 

1,519,877

 

 

 

1,411,666

 

 

 

1,388,496

 

Deposits

 

 

2,613,080

 

 

 

2,648,465

 

 

 

2,031,924

 

 

 

1,735,635

 

 

 

1,711,021

 

Federal Home Loan Bank advances and other borrowings

 

 

39,428

 

 

 

39,431

 

 

 

10,966

 

 

 

20,989

 

 

 

22,391

 

Liabilities

 

 

2,687,516

 

 

 

2,722,341

 

 

 

2,068,408

 

 

 

1,780,756

 

 

 

1,758,663

 

Shareholders' equity

 

$

340,709

 

 

$

321,506

 

 

$

281,614

 

 

$

278,550

 

 

$

271,568

 

Performance Ratios:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Annualized return on average assets

 

 

1.27

%

 

 

0.98

%

 

 

1.06

%

 

 

0.26

%

 

 

1.06

%

Annualized return on average equity

 

 

11.30

%

 

 

9.26

%

 

 

8.83

%

 

 

1.94

%

 

 

7.92

%

Net interest margin (1)

 

 

3.12

%

 

 

2.72

%

 

 

3.23

%

 

 

3.50

%

 

 

3.49

%

Annualized noninterest income to average assets

 

 

1.54

%

 

 

1.93

%

 

 

1.85

%

 

 

1.15

%

 

 

1.12

%

Efficiency ratio

 

 

63.02

%

 

 

65.99

%

 

 

66.44

%

 

 

63.06

%

 

 

68.46

%

Loans by Type (at period end):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial and industrial