8-K
false000167647900016764792021-07-222021-07-22

 

 

 

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 22, 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.

 

 

 

 


 

Item 2.02. Results of Operations and Financial Condition.

 

On July 22, 2021, CapStar Financial Holdings, Inc. (the “Company”) issued an earnings release announcing its financial results for the second quarter ended June 30, 2021. 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.

 

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.

 

The Company will conduct a conference call at 9:00 a.m. (Central Time) on July 23, 2021 to discuss its financial results for the second quarter ended June 30, 2021.

 

 

Item 9.01. Financial Statements and Exhibits.

 

Exhibit Number

 

Description

99.1

 

Earnings release issued on July 22, 2021 by CapStar Financial Holdings, Inc.

99.2

 

Presentation for conference call to be conducted by CapStar Financial Holdings, Inc. on July 23, 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: July 22, 2021

 

3


EX-99.1

 

Exhibit 99.1

EARNINGS RELEASE

 

CONTACT

 

Denis J. Duncan

Chief Financial Officer

(615) 732-7492

 

https://cdn.kscope.io/bf2061565d3114a7369d14871df03322-img47978171_0.jpg

 

 

CapStar Reports Second Quarter 2021 Results

 

 

NASHVILLE, TN, July 22, 2021 (GLOBE NEWSWIRE) -- CapStar Financial Holdings, Inc. (“CapStar”) (NASDAQ:CSTR) today reported net income of $12.1 million or $0.54 per diluted share, for the quarter ended June 30, 2021, compared with net income of $11.0 million or $0.50 per diluted share, for the quarter ended March 31, 2021, and net income of $6.2 million or $0.34 per diluted share, for the quarter ended June 30, 2020. Annualized return on average assets and return on average equity for the quarter ended June 30, 2021 were 1.57 percent and 13.50 percent, respectively. Second quarter 2021 noninterest expense included $256,000 in acquisition related costs.

 

For the six months ended June 30, 2021, the Company reported net income of $23.1 million or $1.04 per diluted share, compared with $7.5 million or $0.41 per diluted share, for the same period of 2020. Year to date 2021 annualized return on average assets and return on average equity were 1.51 percent and 13.13 percent, respectively. Year to date 2021 noninterest expense included $323,000 in acquisition related costs.

 

Four Key Drivers

 

Targets

 

2Q21

 

1Q21

 

2Q20

Annualized revenue growth

 

> 5%

 

8.96%

 

-22.41%

 

106.43%

Net interest margin

 

≥ 3.60%

 

3.26%

 

3.13%

 

3.23%

Efficiency ratio

 

 ≤ 55%

 

57.97%

 

54.08%

 

66.44%

Annualized net charge-offs to average loans

 

 ≤ 0.25%

 

0.01%

 

0.00%

 

0.18%

 

“Our second quarter results reflect strong, profitable growth resulting from the hard work of our dedicated employees.  As we continue to execute on our strategic plan, we are enhancing profitability and accelerating in-market revenue growth while maintaining outstanding credit quality and customer service,” said Timothy K. Schools, President and Chief Executive Officer of CapStar. “The highlights of the second quarter include record noninterest bearing and total deposit balances; loan production, loan balances, and loan pipeline; earnings per share; book value per share; stock price; and market capitalization. Additionally, our criticized and classified loans as a percentage of total loans and classified loans to total risk-based capital ratios are returning to more traditional pre-pandemic levels. Our results benefited from increased PPP forgiveness and while these earnings are temporary in nature, they represent the tremendous effort and customer service provided by our teammates during the pandemic and are reflective of the Company’s capabilities. Looking forward, we are excited and optimistic about the many opportunities we have to expand our highly responsive and customer centric banking model across Tennessee, cited in a recent CNBC study as having our nation’s second best economy and as the fifth best place for business among all fifty states. With four Tennessee-based, $1 billion and greater financial institutions being acquired within our markets over the past twelve months, CapStar is poised to become one of Tennessee’s leading locally-based banks.”

 

 

 


 

Revenue


Total revenue, defined as net interest income plus noninterest income, increased $0.7 million to $32.9 million from the prior quarter. Net interest income totaled $23.0 million, an increase of $0.9 million compared to the first quarter of 2021, principally from income related to increased forgiveness of PPP loans. Second quarter 2021 noninterest income totaled $9.9 million, a decline of $131,000 from the prior quarter.

 

Second quarter 2021 average earning assets of $2.85 billion remained essentially unchanged from first quarter 2021, as strong growth in loans held for investment offset declines in low-yielding interest earning cash and PPP balances. Average loans held for investment, excluding PPP balances, increased $40.8 million from the prior quarter, or 9.4 percent linked-quarter annualized. Loan growth accelerated during the second quarter of 2021 with end of period loans held for investment, excluding PPP balances, increasing $67.6 million, or 15.7 percent linked-quarter annualized. Due to a significant increase in deposits over the past year, average loans as a percentage of average earning assets was 68.4 percent for second quarter 2021. The Company’s commercial loan pipeline is at a record level, approaching $500 million, comprised principally of CapStar-led Tennessee-based loans, presenting the Company a tremendous opportunity to utilize current excess liquidity and capital to grow revenue and net income.

 

The Company’s net interest margin continues to be positively and negatively impacted from the effects of the recent pandemic. For the second quarter of 2021, the net interest margin increased 13 basis points from the prior quarter to 3.26 percent. The Company's net interest margin continues to be impacted by revenues related to PPP loans, as well as significant growth in deposit balances over the past year. Adjusting for the influence of PPP and excess deposits, the Company estimates its second quarter 2021 net interest margin was 3.36 percent, an increase of 1 basis point compared to the first quarter of 2021. 

 

Within the adjusted net interest margin, the Company continued to experience favorable deposit trends. Average deposits totaled $2.66 billion in the second quarter of 2021, unchanged from the prior quarter. The Company experienced a favorable mix shift as average interest-bearing deposits declined $46.2 million, led by a $34.2 million reduction in higher cost time deposits. While the Company is experiencing a period of excess liquidity, a key longer-term strategic initiative is to create a stronger deposit-led culture with an emphasis on lower cost relationship-based deposits. During the quarter, the Company’s two lowest cost deposit categories, noninterest bearing and savings, increased $55.8 million on average from the prior quarter, or 27.8 percent linked-quarter annualized. Deposit costs declined across all interest-bearing account types leading to a 6 basis point decline to 0.29 percent. Combined with the favorable shift in noninterest bearing deposits, total deposit costs improved 5 basis points to 0.21 percent.

 

Noninterest income during the quarter benefitted from record interchange and debit card transaction fees, Tri-Net revenues, wealth management revenues, as well as continued strength in SBA revenues. While mortgage revenues declined from record levels, they remain high relative to past performance, and the Company strengthened its position during the quarter by hiring one of Nashville’s leading mortgage loan originators.

 

Noninterest Expense and Operating Efficiency

 

Noninterest expenses increased $1.7 million from the first quarter of 2021 to $19.1 million in the second quarter of 2021. Second quarter 2021 noninterest expense included approximately $3.0 million associated with the Company's 2021 incentive plan. Given the Company's performance in the first two quarters of 2021 and the outlook for the remainder of the year, the incentive accrual was increased $1.5 million in anticipation of reaching maximum payout. Data processing fees increased approximately $1 million for the quarter ended June 30, 2021 compared to the same period in 2020 due to increased transaction volumes related to the Company's recent acquisitions and services related to the processing of PPP loans. As noted above, second quarter 2021 noninterest expense included $256,000 in acquisition related costs.

 

Efficiency is a key focus and the Company uses three metrics to monitor its performance relative to peers: efficiency ratio (noninterest expense as a percentage of total revenue), noninterest expense as a percentage of assets, and assets per employee. For the quarter ended June 30, 2021, the efficiency ratio was 57.97 percent, an increase from 54.08 percent in the first quarter of 2021. Annualized noninterest expense as a percentage of average assets increased to 2.49 percent for the quarter ended June 30, 2021 compared to 2.29 percent for the quarter ended March 31, 2021. Assets per employee improved to $8.4 million as of June 30, 2021 compared to $8.3 million for the previous quarter.

 


 

 

Asset Quality

 

Asset quality is a core tenant of the Company’s culture. Sound risk management and an improving economy led to low net charge-offs and strong credit metrics. Annualized net charge offs to average loans for the three months ended June 30, 2021 remained low at 0.01 percent. Past due loans as a percentage of total loans held for investment were 0.49 percent at June 30, 2021, compared to 0.43 percent at March 31, 2021. Within this amount, loans greater than 90 days past due totaled $2.4 million, or 0.13 percent of loans held for investment at June 30, 2021, compared to 0.14 percent at March 31, 2021. Non-performing assets to total loans and OREO were 0.22 percent at June 30, 2021, an improvement from 0.30 percent at March 31, 2021. Criticized and classified loans to total loans, which elevated during the pandemic, continued to improve and were 3.93 percent at June 30, 2021.

 

As a result of the Company’s quarterly analysis of the adequacy of the allowance for credit losses, the Company released reserves during the quarter based on improved asset quality trends and other qualitative factors. In addition to providing reserves for the strong loan growth experienced during the second quarter, the allowance for loan losses declined $1.1 million. As a result, the allowance for loan losses plus the fair value mark on acquired loans to total loans, less PPP loans, declined 13 basis points to 1.46 percent at June 30, 2021 from 1.59 percent at March 31, 2021. 

 

Asset Quality Data:

 

6/30/2021

 

 

3/31/2021

 

 

12/31/2020

 

 

9/30/2020

 

 

6/30/2020

 

Annualized net charge-offs (recoveries) to average loans

 

 

0.01

%

 

 

0.00

%

 

 

0.02

%

 

 

0.00

%

 

 

0.18

%

Criticized and classified loans to total loans

 

 

3.93

%

 

 

4.37

%

 

 

5.44

%

 

 

5.61

%

 

 

4.25

%

Classified loans to total risk-based capital

 

 

7.69

%

 

 

10.51

%

 

 

11.08

%

 

 

11.43

%

 

 

8.88

%

Loans- past due to total end of period loans

 

 

0.49

%

 

 

0.43

%

 

 

1.12

%

 

 

0.44

%

 

 

0.32

%

Loans- over 89 days past due to total end of period loans

 

 

0.13

%

 

 

0.14

%

 

 

0.23

%

 

 

0.09

%

 

 

0.09

%

Non-performing assets to total loans and OREO

 

 

0.22

%

 

 

0.30

%

 

 

0.28

%

 

 

0.16

%

 

 

0.20

%

Allowance for loan losses plus fair value marks / Non-PPP Loans

 

 

1.46

%

 

 

1.59

%

 

 

1.57

%

 

 

1.61

%

 

 

1.73

%

Allowance for loan losses to non-performing loans

 

 

571

%

 

 

446

%

 

 

483

%

 

 

787

%

 

 

705

%

 

Income Tax Expense

 

The Company’s effective income tax rate for the second quarter of 2021 was 19.0 percent, a decline from 22.0. percent in the prior quarter ended March 31, 2021. The decrease was primarily attributable to adjustments to the tax provision related to changes in tax strategy and updated expected results for the year. The Company anticipates its effective tax rate for 2021 to be approximately 21.0 percent.

 

Capital

 

The Company continues to be strongly capitalized with tangible equity of $311.1 million at June 30, 2021. Tangible book value per share of common stock for the quarter ended June 30, 2021 increased to $14.03 compared to $13.34 and $13.02 for the quarters ended March 31, 2021 and June 30, 2020, respectively. The regulatory capital ratios in the table below are significantly above levels required to be considered “well capitalized," which is the highest possible regulatory designation.

 

Capital ratios:

 

6/30/2021

 

 

3/31/2021

 

 

12/31/2020

 

 

9/30/2020

 

 

6/30/2020

 

Total risk-based capital

 

 

16.13

%

 

 

16.29

%

 

 

16.03

%

 

 

15.96

%

 

 

16.76

%

Common equity tier 1 capital

 

 

13.78

%

 

 

13.79

%

 

 

13.52

%

 

 

13.39

%

 

 

13.76

%

Leverage

 

 

10.17

%

 

 

9.78

%

 

 

9.60

%

 

 

9.23

%

 

 

10.08

%

 

In the second quarter of 2021, the Company did not repurchase common stock under its share repurchase program. The total remaining authorization for future repurchases was $29.7 million as of June 30, 2021. 

 

Dividend

 

On July 22, 2021, the Board of Directors of CapStar approved a quarterly cash dividend of $0.06 per common share payable on August 25, 2021 to shareholders of record as of August 11, 2021.

 

 

 


 

Conference Call and Webcast Information

CapStar will host a conference call and webcast at 9:00 a.m. Central Time on Friday, July 23, 2021. 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 2976541. 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, 2021, on a consolidated basis, CapStar had total assets of $3.2 billion, total loans of $1.9 billion, total deposits of $2.8 billion, and shareholders’ equity of $359.8 million. Visit www.capstarbank.com for more information.

 

 


 

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 2021 Earnings Release

 

 

Three Months Ended

 

 

Six Months Ended

 

 

 

June 30,

 

 

June 30,

 

 

 

2021

 

 

2020

 

 

2021

 

 

2020

 

Interest income:

 

 

 

 

 

 

 

 

 

 

 

 

Loans, including fees

 

$

22,572

 

 

$

19,086

 

 

$

44,586

 

 

$

38,823

 

Securities:

 

 

 

 

 

 

 

 

 

 

 

 

Taxable

 

 

1,640

 

 

 

1,096

 

 

 

3,244

 

 

 

2,272

 

Tax-exempt

 

 

356

 

 

 

312

 

 

 

722

 

 

 

633

 

Federal funds sold

 

 

3

 

 

 

 

 

 

3

 

 

 

 

Restricted equity securities

 

 

160

 

 

 

140

 

 

 

321

 

 

 

282

 

Interest-bearing deposits in financial institutions

 

 

101

 

 

 

107

 

 

 

234

 

 

 

469

 

Total interest income

 

 

24,832

 

 

 

20,741

 

 

 

49,110

 

 

 

42,479

 

Interest expense:

 

 

 

 

 

 

 

 

 

 

 

 

Interest-bearing deposits

 

 

379

 

 

 

831

 

 

 

826

 

 

 

2,732

 

Savings and money market accounts

 

 

295

 

 

 

731

 

 

 

608

 

 

 

2,283

 

Time deposits

 

 

732

 

 

 

1,416

 

 

 

1,663

 

 

 

2,897

 

Federal funds purchased

 

 

 

 

 

 

 

 

 

 

 

 

Securities sold under agreements to repurchase

 

 

 

 

 

 

 

 

 

 

 

 

Federal Home Loan Bank advances

 

 

 

 

 

88

 

 

 

12

 

 

 

231

 

Subordinated notes

 

 

394

 

 

 

 

 

 

788

 

 

 

 

Total interest expense

 

 

1,800

 

 

 

3,066

 

 

 

3,897

 

 

 

8,143

 

Net interest income

 

 

23,032

 

 

 

17,675

 

 

 

45,213

 

 

 

34,336

 

Provision for loan losses

 

 

(1,065

)

 

 

1,624

 

 

 

(415

)

 

 

9,177

 

Net interest income after provision for loan losses

 

 

24,097

 

 

 

16,051

 

 

 

45,628

 

 

 

25,159

 

Noninterest income:

 

 

 

 

 

 

 

 

 

 

 

 

Deposit service charges

 

 

1,109

 

 

 

691

 

 

 

2,211

 

 

 

1,466

 

Interchange and debit card transaction fees

 

 

1,227

 

 

 

729

 

 

 

2,318

 

 

 

1,454

 

Mortgage banking

 

 

3,910

 

 

 

7,123

 

 

 

8,625

 

 

 

9,376

 

Tri-Net

 

 

1,536

 

 

 

1,260

 

 

 

2,679

 

 

 

1,860

 

Wealth management

 

 

471

 

 

 

374

 

 

 

931

 

 

 

781

 

SBA lending

 

 

377

 

 

 

13

 

 

 

870

 

 

 

49

 

Net gain (loss) on sale of securities

 

 

(13

)

 

 

13

 

 

 

13

 

 

 

40

 

Other noninterest income

 

 

1,266

 

 

 

620

 

 

 

2,250

 

 

 

1,671

 

Total noninterest income

 

 

9,883

 

 

 

10,823

 

 

 

19,897

 

 

 

16,697

 

Noninterest expense:

 

 

 

 

 

 

 

 

 

 

 

 

Salaries and employee benefits

 

 

10,803

 

 

 

12,305

 

 

 

20,229

 

 

 

20,307

 

Data processing and software

 

 

3,070

 

 

 

2,100

 

 

 

5,898

 

 

 

3,964

 

Occupancy

 

 

1,057

 

 

 

797

 

 

 

2,165

 

 

 

1,616

 

Equipment

 

 

980

 

 

 

680

 

 

 

1,880

 

 

 

1,431

 

Professional services

 

 

460

 

 

 

581

 

 

 

1,165

 

 

 

1,216

 

Regulatory fees

 

 

211

 

 

 

333

 

 

 

467

 

 

 

496

 

Acquisition related expenses

 

 

256

 

 

 

448

 

 

 

323

 

 

 

738

 

Amortization of intangibles

 

 

493

 

 

 

375

 

 

 

1,001

 

 

 

761

 

Other operating

 

 

1,750

 

 

 

1,315

 

 

 

3,364

 

 

 

2,616

 

Total noninterest expense

 

 

19,080

 

 

 

18,934

 

 

 

36,492

 

 

 

33,145

 

Income before income taxes

 

 

14,900

 

 

 

7,940

 

 

 

29,033

 

 

 

8,711

 

Income tax expense

 

 

2,824

 

 

 

1,759

 

 

 

5,927

 

 

 

1,184

 

Net income

 

$

12,076

 

 

$

6,181

 

 

$

23,106

 

 

$

7,527

 

Per share information:

 

 

 

 

 

 

 

 

 

 

 

 

Basic net income per share of common stock

 

$

0.55

 

 

$

0.34

 

 

$

1.05

 

 

$

0.41

 

Diluted net income per share of common stock

 

$

0.54

 

 

$

0.34

 

 

$

1.04

 

 

$

0.41

 

Weighted average shares outstanding:

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

 

22,133,759

 

 

 

18,307,083

 

 

 

22,089,874

 

 

 

18,349,998

 

Diluted

 

 

22,198,829

 

 

 

18,320,006

 

 

 

22,138,052

 

 

 

18,381,866

 

 

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 2021 Earnings Release

 

 

Five Quarter Comparison

 

 

 

6/30/2021

 

 

3/31/2021

 

 

12/31/2020

 

 

9/30/2020

 

 

6/30/2020

 

Income Statement Data:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net interest income

 

$

23,032

 

 

$

22,182

 

 

$

22,331

 

 

$

19,656

 

 

$

17,675

 

Provision for loan losses

 

 

(1,065

)

 

 

650

 

 

 

184

 

 

 

2,119

 

 

 

1,624

 

Net interest income after provision for loan losses

 

 

24,097

 

 

 

21,532

 

 

 

22,147

 

 

 

17,537

 

 

 

16,051

 

Deposit service charges

 

 

1,109

 

 

 

1,102

 

 

 

964

 

 

 

1,064

 

 

 

691

 

Interchange and debit card transaction fees

 

 

1,227

 

 

 

1,092

 

 

 

782

 

 

 

936

 

 

 

729

 

Mortgage banking

 

 

3,910

 

 

 

4,716

 

 

 

5,971

 

 

 

9,686

 

 

 

7,123

 

Tri-Net

 

 

1,536

 

 

 

1,143

 

 

 

1,165

 

 

 

668

 

 

 

1,260

 

Wealth management

 

 

471

 

 

 

459

 

 

 

411

 

 

 

382

 

 

 

374

 

SBA lending

 

 

377

 

 

 

492

 

 

 

916

 

 

 

476

 

 

 

13

 

Net gain on sale of securities

 

 

(13

)

 

 

26

 

 

 

51

 

 

 

34

 

 

 

13

 

Other noninterest income

 

 

1,266

 

 

 

984

 

 

 

1,488

 

 

 

1,558

 

 

 

620

 

Total noninterest income

 

 

9,883

 

 

 

10,014

 

 

 

11,748

 

 

 

14,804

 

 

 

10,823

 

Salaries and employee benefits

 

 

10,803

 

 

 

9,427

 

 

 

11,996

 

 

 

12,949

 

 

 

12,305

 

Data processing and software

 

 

3,070

 

 

 

2,827

 

 

 

2,548

 

 

 

2,353

 

 

 

2,100

 

Occupancy

 

 

1,057

 

 

 

1,108

 

 

 

975

 

 

 

999

 

 

 

797

 

Equipment

 

 

980

 

 

 

899

 

 

 

900

 

 

 

864

 

 

 

680

 

Professional services

 

 

460

 

 

 

704

 

 

 

370

 

 

 

638

 

 

 

581

 

Regulatory fees

 

 

211

 

 

 

257

 

 

 

368

 

 

 

397

 

 

 

333

 

Acquisition related expenses

 

 

256

 

 

 

67

 

 

 

2,105

 

 

 

2,548

 

 

 

448

 

Amortization of intangibles

 

 

493

 

 

 

508

 

 

 

524

 

 

 

539

 

 

 

375

 

Other operating

 

 

1,750

 

 

 

1,616

 

 

 

1,692

 

 

 

1,452

 

 

 

1,315

 

Total noninterest expense

 

 

19,080

 

 

 

17,413

 

 

 

21,478

 

 

 

22,739

 

 

 

18,934

 

Net income before income tax expense

 

 

14,900

 

 

 

14,133

 

 

 

12,417

 

 

 

9,602

 

 

 

7,940

 

Income tax expense (benefit)

 

 

2,824

 

 

 

3,103

 

 

 

2,736

 

 

 

2,115

 

 

 

1,759

 

Net income

 

$

12,076

 

 

$

11,030

 

 

$

9,681

 

 

$

7,487

 

 

$

6,181

 

Weighted average shares - basic

 

 

22,133,759

 

 

 

22,045,501

 

 

 

21,960,184

 

 

 

21,948,579

 

 

 

18,307,083

 

Weighted average shares - diluted

 

 

22,198,829

 

 

 

22,076,600

 

 

 

21,978,925

 

 

 

21,960,490

 

 

 

18,320,006

 

Net income per share, basic

 

$

0.55

 

 

$

0.50

 

 

$

0.44

 

 

$

0.34

 

 

$

0.34

 

Net income per share, diluted

 

 

0.54

 

 

 

0.50

 

 

 

0.44

 

 

 

0.34

 

 

 

0.34

 

Balance Sheet Data (at period end):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

449,267

 

 

$

390,565

 

 

$

277,439

 

 

$

455,925

 

 

$

368,820

 

Securities available-for-sale

 

 

500,339

 

 

 

474,788

 

 

 

486,215

 

 

 

308,337

 

 

 

223,034

 

Securities held-to-maturity

 

 

2,395

 

 

 

2,401

 

 

 

2,407

 

 

 

2,413

 

 

 

2,699

 

Loans held for sale

 

 

148,251

 

 

 

162,269

 

 

 

179,669

 

 

 

198,603

 

 

 

129,807

 

Loans held for investment

 

 

1,907,820

 

 

 

1,941,078

 

 

 

1,891,019

 

 

 

1,906,603

 

 

 

1,592,725

 

Allowance for loan losses

 

 

(22,754

)

 

 

(23,877

)

 

 

(23,245

)

 

 

(23,167

)

 

 

(21,035

)

Total assets

 

 

3,212,390

 

 

 

3,150,457

 

 

 

2,987,006

 

 

 

3,024,348

 

 

 

2,445,172

 

Non-interest-bearing deposits

 

 

782,170

 

 

 

711,606

 

 

 

662,934

 

 

 

716,707

 

 

 

546,974

 

Interest-bearing deposits

 

 

1,998,024

 

 

 

2,039,595

 

 

 

1,905,067

 

 

 

1,900,835

 

 

 

1,548,592

 

Federal Home Loan Bank advances and other borrowings

 

 

29,487

 

 

 

29,455

 

 

 

39,423

 

 

 

39,418

 

 

 

39,464

 

Total liabilities

 

 

2,852,639

 

 

 

2,806,513

 

 

 

2,643,520

 

 

 

2,690,453

 

 

 

2,163,222

 

Shareholders' equity

 

$

359,752

 

 

$

343,944

 

 

$

343,486

 

 

$

333,895

 

 

$

281,950

 

Total shares of common stock outstanding

 

 

22,165,547

 

 

 

22,089,873

 

 

 

21,988,803

 

 

 

21,947,805

 

 

 

18,302,188

 

Book value per share of common stock

 

$

16.23

 

 

$

15.57

 

 

$

15.62

 

 

$

15.21

 

 

$

15.41

 

Tangible book value per share of common stock*

 

 

14.03

 

 

 

13.34

 

 

 

13.36

 

 

 

12.92

 

 

 

13.02

 

Market value per share of common stock

 

$

20.50

 

 

$

17.25

 

 

$

14.75

 

 

$

9.81

 

 

$

12.00

 

Capital ratios:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total risk-based capital

 

 

16.13

%

 

 

16.29

%

 

 

16.03

%

 

 

15.96

%

 

 

16.76

%

Tier 1 risk-based capital

 

 

13.78

%

 

 

13.79

%

 

 

13.52

%

 

 

13.39

%

 

 

13.76

%

Common equity tier 1 capital

 

 

13.78

%

 

 

13.79

%

 

 

13.52

%

 

 

13.39

%

 

 

13.76

%

Leverage

 

 

10.17

%

 

 

9.78

%

 

 

9.60

%

 

 

9.23

%

 

 

10.08

%

_____________________

*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 2021 Earnings Release

 

 

 

Five Quarter Comparison

 

 

 

6/30/2021

 

 

3/31/2021

 

 

12/31/2020

 

 

9/30/2020

 

 

6/30/2020

 

Average Balance Sheet Data:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

301,773

 

 

$

341,092

 

 

$

427,086

 

 

$

526,409

 

 

$

257,709

 

Investment securities

 

 

508,595

 

 

 

496,035

 

 

 

407,622

 

 

 

323,689

 

 

 

238,762

 

Loans held for sale

 

 

138,093

 

 

 

155,677

 

 

 

165,441

 

 

 

156,123

 

 

 

176,193

 

Loans

 

 

1,948,638

 

 

 

1,938,532

 

 

 

1,891,202

 

 

 

1,906,449

 

 

 

1,560,626

 

Assets

 

 

3,078,748

 

 

 

3,078,745

 

 

 

3,028,225

 

 

 

3,043,847

 

 

 

2,350,021

 

Interest bearing deposits

 

 

1,940,442

 

 

 

1,986,621

 

 

 

1,909,692

 

 

 

1,957,259

 

 

 

1,519,877

 

Deposits

 

 

2,662,192

 

 

 

2,663,551

 

 

 

2,613,080

 

 

 

2,648,465

 

 

 

2,031,924

 

Federal Home Loan Bank advances and other borrowings

 

 

29,467

 

 

 

33,879

 

 

 

39,428

 

 

 

39,431

 

 

 

10,966

 

Liabilities

 

 

2,719,898

 

 

 

2,728,064

 

 

 

2,687,516

 

 

 

2,722,341

 

 

 

2,068,408

 

Shareholders' equity

 

 

358,850

 

 

 

350,681

 

 

 

340,709

 

 

 

321,506

 

 

 

281,614

 

Performance Ratios:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Annualized return on average assets

 

 

1.57

%

 

 

1.45

%

 

 

1.27

%

 

 

0.98

%

 

 

1.06

%

Annualized return on average equity

 

 

13.50

%

 

 

12.76

%

 

 

11.30

%

 

 

9.26

%

 

 

8.83

%

Net interest margin (1)

 

 

3.26

%

 

 

3.13

%

 

 

3.12

%

 

 

2.72

%

 

 

3.23

%

Annualized noninterest income to average assets

 

 

1.29

%

 

 

1.32

%