CapStar Financial Holdings, Inc. (“CapStar”)
(NASDAQ:CSTR) reported a net loss of $3.34 million, or $0.26 per
share on a fully diluted basis, for the three months ended June 30,
2017, compared to net income of $2.48 million, or $0.23 per share
on a fully diluted basis, for the three months ended June 30,
2016. The net loss for the quarter was primarily attributable
to the charge off and costs associated with one borrowing
relationship, which impacted pretax earnings by $9.7 million.
“CapStar’s organic growth remains strong,” said Claire W.
Tucker, CapStar’s president and chief executive officer.
“Comparing performance in the second quarter of 2017 to the same
period in 2016, pre-tax pre-provision income increased 31% to $5.0
million from $3.8 million. Our otherwise strong quarterly
performance was overshadowed by deterioration in one non-performing
relationship that we discussed previously in connection with our
first quarter results, which led to a charge off of the
relationship’s existing loan balance. We believe that our
existing risk management processes and credit infrastructure
provide a solid framework for sound asset quality. We are
consistently focused on delivering strong operating and financial
results, and we remain committed to achieving our stated goal of a
1% ROAA by the end of 2018.”
Soundness
- The allowance for loan losses represented 1.25% of total loans
at June 30, 2017 compared to 1.18% at June 30, 2016.
- Non-performing assets as a percentage of total loans and other
real estate owned was 0.32% at June 30, 2017 compared to 0.66% at
June 30, 2016.
- Annualized net charge-offs totaled 4.38% for the three months
ended June 30, 2017 compared to 0.01% for the same period in
2016.
- The total risk based capital ratio increased to 11.51% at June
30, 2017 compared to 10.67% at June 30, 2016.
Profitability
- Return on average assets ("ROAA") for the three months ended
June 30, 2017 was -0.96% compared to 0.80% for the same period in
2016.
- Return on average equity ("ROAE") for the three months ended
June 30, 2017 was -9.39% compared to 8.85% for the same period in
2016.
- The net interest margin (“NIM”) for the three months ended June
30, 2017 was 3.15% compared to 3.09% for the same period in
2016.
- The efficiency ratio for the three months ended June 30, 2017
was 62.1% compared to 67.6% for the same period in 2016.
“While we are disappointed with the credit impact on our
bottom-line performance, there are several positives from our
quarterly performance,” said Rob Anderson, chief financial officer
and chief administrative officer of CapStar. “Our net
interest margin expanded 6 basis points, loan growth was up 18%,
DDA & NOW deposits increased 14%, and noninterest income
benefited from loan sales in our Tri-Net line of business.
Absent the credit charges, the operating performance of the company
met our internal expectations for the quarter.”
Growth
- Average total assets for the quarter ended June 30, 2017
increased 11.7%, to $1.39 billion, compared to $1.25 billion for
the same period in 2016.
- Average gross loans for the quarter ended June 30, 2017
increased 17.7%, to $1.03 billion, compared to $874.0 million for
the same period in 2016.
- Average total deposits for the quarter ended June 30, 2017
increased 1.7%, to $1.11 billion, compared to $1.09 billion for the
same period in 2016.
- Average Demand and NOW deposits for the quarter ended June 30,
2017 increased 13.9%, to $531.6 million, compared to $466.7 million
for the same period in 2016.
Conference Call and Webcast Information
CapStar will host a conference call and webcast at 9:00 a.m.
Central Time on Friday, July 28, 2017. 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 50968047.
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, 2017, on a consolidated basis, CapStar had total assets of
$1.4 billion, gross loans of $996.6 million, total deposits of $1.1
billion, and shareholders’ equity of $138.0 million. Visit
www.capstarbank.com for more information.
Forward-Looking Statements
Certain statements in this earnings release are forward-looking
statements that reflect CapStar’s current views with respect to,
among other things, future events and CapStar’s financial and
operational performance. These statements are often, but not
always, made through the use of words or phrases such as “may,”
“should,” “could,” “predict,” “potential,” “believe,” “will likely
result,” “expect,” “continue,” “will,” “anticipate,” “seek,”
“aspire,” “achieve,” “estimate,” “intend,” “plan,” “project,”
“projection,” “forecast,” “roadmap,” “goal,” “target,” “would,” and
“outlook,” or the negative version of those words or other
comparable words of a future or forward-looking nature. These
forward-looking statements are not historical facts, and are based
on current expectations, estimates and projections about CapStar’s
industry, management’s beliefs and certain assumptions made by
management, many of which, by their nature, are inherently
uncertain and beyond CapStar’s control. The inclusion of these
forward-looking statements should not be regarded as a
representation by CapStar or any other person that such
expectations, estimates and projections will be achieved.
Accordingly, CapStar cautions you that any such forward-looking
statements are not guarantees of future performance and are subject
to risks, assumptions and uncertainties that are difficult to
predict. Although CapStar believes that the expectations reflected
in these forward-looking statements are reasonable as of the date
made, actual results may prove to be materially different from the
results expressed or implied by the forward-looking statements.
There are or will be important factors that could cause CapStar’s
actual results to differ materially from those indicated in these
forward-looking statements, including, but not limited to, any
factors identified in this earnings release as well as those
factors that are detailed from time to time in CapStar’s periodic
and current reports filed with the Securities and Exchange
Commission, including those factors included in the Company’s
Annual Report on Form 10-K for the year ended December 31, 2016
under the headings “Item 1A. Risk Factors” and “Cautionary Note
Regarding Forward Looking Statements” and in the Company’s
Quarterly Reports on Form 10-Q and Current Reports on Form
8-K. If one or more events related to these or other risks or
uncertainties materialize, or if CapStar’s underlying assumptions
prove to be incorrect, actual results may differ materially from
our forward-looking statements. Accordingly, you should not place
undue reliance on any such forward-looking statements. Any
forward-looking statement speaks only as of the date of this
earnings release, and CapStar does not undertake any obligation to
publicly update or review any forward-looking statement, whether as
a result of new information, future developments or otherwise,
except as required by law. New risks and uncertainties may emerge
from time to time, and it is not possible for CapStar to predict
their occurrence or how they will affect CapStar.
Non-GAAP Disclaimer
This earnings release includes the following financial measure
that was prepared other than in accordance with generally accepted
accounting principles in the United States (“non-GAAP financial
measure”): pre-tax, pre-provision income. This non-GAAP financial
measure (i) provides useful information to management and investors
that is supplementary to CapStar’s financial condition, results of
operations and cash flows computed in accordance with GAAP, (ii)
enables a more complete understanding of factors and trends
affecting CapStar’s business, and (iii) allows investors to
evaluate CapStar’s performance in a manner similar to management,
the financial services industry, bank stock analysts and bank
regulators; however, CapStar acknowledges that this non-GAAP
financial measure has a number of limitations. As such, you
should not view this non-GAAP financial measure as a substitute for
results determined in accordance with GAAP, and it is not
necessarily comparable to non-GAAP financial measures that other
companies use. See below for a reconciliation of this
non-GAAP financial measure to the most directly comparable GAAP
financial measure.
|
|
CAPSTAR FINANCIAL HOLDINGS, INC. AND
SUBSIDIARY |
|
Consolidated Statements of Income (Loss) (unaudited)
(dollars in thousands, except share data) |
|
Second Quarter 2017 Earnings Release |
|
|
|
|
|
Three Months Ended |
|
|
Six Months Ended |
|
|
|
June 30, |
|
|
June 30, |
|
|
|
2017 |
|
|
2016 |
|
|
2017 |
|
|
2016 |
|
Interest income: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans,
including fees |
|
$ |
11,373 |
|
|
$ |
9,605 |
|
|
$ |
21,840 |
|
|
$ |
18,873 |
|
Securities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Taxable |
|
|
983 |
|
|
|
911 |
|
|
|
1,987 |
|
|
|
1,810 |
|
Tax-exempt |
|
|
317 |
|
|
|
268 |
|
|
|
642 |
|
|
|
549 |
|
Federal
funds sold |
|
|
16 |
|
|
|
4 |
|
|
|
18 |
|
|
|
9 |
|
Restricted equity securities |
|
|
86 |
|
|
|
70 |
|
|
|
163 |
|
|
|
139 |
|
Interest-bearing deposits in financial institutions |
|
|
115 |
|
|
|
56 |
|
|
|
219 |
|
|
|
133 |
|
Total
interest income |
|
|
12,890 |
|
|
|
10,914 |
|
|
|
24,869 |
|
|
|
21,513 |
|
Interest expense: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing deposits |
|
|
586 |
|
|
|
390 |
|
|
|
1,204 |
|
|
|
692 |
|
Savings
and money market accounts |
|
|
773 |
|
|
|
719 |
|
|
|
1,587 |
|
|
|
1,451 |
|
Time
deposits |
|
|
574 |
|
|
|
506 |
|
|
|
1,046 |
|
|
|
1,020 |
|
Federal
funds purchased |
|
|
7 |
|
|
|
6 |
|
|
|
11 |
|
|
|
8 |
|
Securities sold under agreements to repurchase |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
1 |
|
Federal
Home Loan Bank advances |
|
|
379 |
|
|
|
92 |
|
|
|
519 |
|
|
|
183 |
|
Total
interest expense |
|
|
2,319 |
|
|
|
1,713 |
|
|
|
4,367 |
|
|
|
3,355 |
|
Net
interest income |
|
|
10,571 |
|
|
|
9,201 |
|
|
|
20,502 |
|
|
|
18,158 |
|
Provision for loan
losses |
|
|
9,690 |
|
|
|
183 |
|
|
|
13,094 |
|
|
|
1,120 |
|
Net
interest income after provision for loan losses |
|
|
881 |
|
|
|
9,018 |
|
|
|
7,408 |
|
|
|
17,038 |
|
Noninterest
income: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Service
charges on deposit accounts |
|
|
342 |
|
|
|
303 |
|
|
|
670 |
|
|
|
529 |
|
Loan
commitment fees |
|
|
187 |
|
|
|
142 |
|
|
|
423 |
|
|
|
572 |
|
Net gain
on sale of securities |
|
|
40 |
|
|
|
86 |
|
|
|
34 |
|
|
|
125 |
|
Tri-Net
fees |
|
|
297 |
|
|
|
— |
|
|
|
382 |
|
|
|
— |
|
Mortgage
banking income |
|
|
1,370 |
|
|
|
1,655 |
|
|
|
2,587 |
|
|
|
3,002 |
|
Other
noninterest income |
|
|
430 |
|
|
|
382 |
|
|
|
703 |
|
|
|
711 |
|
Total
noninterest income |
|
|
2,666 |
|
|
|
2,568 |
|
|
|
4,799 |
|
|
|
4,939 |
|
Noninterest
expense: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Salaries
and employee benefits |
|
|
4,784 |
|
|
|
4,938 |
|
|
|
9,870 |
|
|
|
10,156 |
|
Data
processing and software |
|
|
711 |
|
|
|
635 |
|
|
|
1,331 |
|
|
|
1,203 |
|
Professional fees |
|
|
350 |
|
|
|
426 |
|
|
|
714 |
|
|
|
757 |
|
Occupancy |
|
|
539 |
|
|
|
371 |
|
|
|
987 |
|
|
|
781 |
|
Equipment |
|
|
544 |
|
|
|
436 |
|
|
|
1,040 |
|
|
|
843 |
|
Regulatory fees |
|
|
301 |
|
|
|
265 |
|
|
|
608 |
|
|
|
492 |
|
Other
operating |
|
|
988 |
|
|
|
880 |
|
|
|
2,042 |
|
|
|
1,729 |
|
Total
noninterest expense |
|
|
8,217 |
|
|
|
7,951 |
|
|
|
16,592 |
|
|
|
15,961 |
|
Income
(loss) before income taxes |
|
|
(4,670 |
) |
|
|
3,635 |
|
|
|
(4,385 |
) |
|
|
6,016 |
|
Income tax (benefit)
expense |
|
|
(1,328 |
) |
|
|
1,159 |
|
|
|
(1,375 |
) |
|
|
1,956 |
|
Net
income (loss) |
|
$ |
(3,342 |
) |
|
$ |
2,476 |
|
|
$ |
(3,010 |
) |
|
$ |
4,060 |
|
Per share
information: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic net
income (loss) per share of common stock |
|
$ |
(0.30 |
) |
|
$ |
0.29 |
|
|
$ |
(0.27 |
) |
|
$ |
0.47 |
|
Diluted
net income (loss) per share of common stock |
|
$ |
(0.26 |
) |
|
$ |
0.23 |
|
|
$ |
(0.24 |
) |
|
$ |
0.38 |
|
Weighted
average shares outstanding: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
|
11,226,216 |
|
|
|
8,682,438 |
|
|
|
11,218,624 |
|
|
|
8,655,561 |
|
Diluted |
|
|
12,740,104 |
|
|
|
10,675,916 |
|
|
|
12,761,989 |
|
|
|
10,624,004 |
|
|
|
This information is preliminary and based on company data
available at the time of the presentation.
|
|
CAPSTAR FINANCIAL HOLDINGS, INC. AND
SUBSIDIARY |
|
Selected Quarterly Financial Data (unaudited) (dollars in
thousands, except share data) |
|
Second Quarter 2017 Earnings Release |
|
|
|
|
|
Five Quarter Comparison |
|
|
|
6/30/17 |
|
|
3/31/17 |
|
|
12/31/16 |
|
|
9/30/16 |
|
|
6/30/16 |
|
Income
Statement Data: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
interest income |
|
$ |
10,571 |
|
|
$ |
9,932 |
|
|
$ |
10,180 |
|
|
$ |
10,126 |
|
|
$ |
9,201 |
|
Provision
for loan losses |
|
|
9,690 |
|
|
|
3,405 |
|
|
|
70 |
|
|
|
1,639 |
|
|
|
183 |
|
Net
interest income after provision for loan losses |
|
|
881 |
|
|
|
6,527 |
|
|
|
10,110 |
|
|
|
8,487 |
|
|
|
9,018 |
|
Service
charges on deposit accounts |
|
|
342 |
|
|
|
329 |
|
|
|
303 |
|
|
|
277 |
|
|
|
303 |
|
Loan
commitment fees |
|
|
187 |
|
|
|
236 |
|
|
|
217 |
|
|
|
329 |
|
|
|
142 |
|
Net gain
(loss) on sale of securities |
|
|
40 |
|
|
|
(6 |
) |
|
|
— |
|
|
|
(4 |
) |
|
|
86 |
|
Tri-Net
fees |
|
|
297 |
|
|
|
84 |
|
|
|
125 |
|
|
|
— |
|
|
|
— |
|
Mortgage
banking income |
|
|
1,370 |
|
|
|
1,216 |
|
|
|
2,033 |
|
|
|
2,339 |
|
|
|
1,655 |
|
Other
noninterest income |
|
|
430 |
|
|
|
274 |
|
|
|
276 |
|
|
|
251 |
|
|
|
382 |
|
Total
noninterest income |
|
|
2,666 |
|
|
|
2,133 |
|
|
|
2,954 |
|
|
|
3,192 |
|
|
|
2,568 |
|
Salaries
and employee benefits |
|
|
4,784 |
|
|
|
5,086 |
|
|
|
5,185 |
|
|
|
5,119 |
|
|
|
4,938 |
|
Data
processing and software |
|
|
711 |
|
|
|
621 |
|
|
|
542 |
|
|
|
627 |
|
|
|
635 |
|
Professional fees |
|
|
350 |
|
|
|
365 |
|
|
|
406 |
|
|
|
391 |
|
|
|
426 |
|
Occupancy |
|
|
539 |
|
|
|
449 |
|
|
|
366 |
|
|
|
352 |
|
|
|
371 |
|
Equipment |
|
|
544 |
|
|
|
496 |
|
|
|
443 |
|
|
|
458 |
|
|
|
436 |
|
Regulatory fees |
|
|
301 |
|
|
|
307 |
|
|
|
348 |
|
|
|
250 |
|
|
|
265 |
|
Other
operating |
|
|
988 |
|
|
|
1,052 |
|
|
|
1,352 |
|
|
|
1,329 |
|
|
|
880 |
|
Total
noninterest expense |
|
|
8,217 |
|
|
|
8,376 |
|
|
|
8,642 |
|
|
|
8,526 |
|
|
|
7,951 |
|
Net
income (loss) before income tax expense |
|
|
(4,670 |
) |
|
|
284 |
|
|
|
4,422 |
|
|
|
3,153 |
|
|
|
3,635 |
|
Income
tax (benefit) expense |
|
|
(1,328 |
) |
|
|
(47 |
) |
|
|
1,495 |
|
|
|
1,042 |
|
|
|
1,159 |
|
Net
income (loss) |
|
$ |
(3,342 |
) |
|
$ |
331 |
|
|
$ |
2,927 |
|
|
$ |
2,111 |
|
|
$ |
2,476 |
|
Weighted
average shares - basic |
|
|
11,226,216 |
|
|
|
11,210,948 |
|
|
|
11,194,534 |
|
|
|
8,792,665 |
|
|
|
8,682,438 |
|
Weighted
average shares - diluted |
|
|
12,740,104 |
|
|
|
12,784,117 |
|
|
|
12,787,677 |
|
|
|
10,799,536 |
|
|
|
10,675,916 |
|
Net
income (loss) per share, basic |
|
$ |
(0.30 |
) |
|
$ |
0.03 |
|
|
$ |
0.26 |
|
|
$ |
0.24 |
|
|
$ |
0.29 |
|
Net
income (loss) per share, diluted |
|
|
(0.26 |
) |
|
|
0.03 |
|
|
|
0.23 |
|
|
|
0.20 |
|
|
|
0.23 |
|
Balance Sheet
Data (at period end): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and
cash equivalents |
|
$ |
48,093 |
|
|
$ |
60,039 |
|
|
$ |
80,111 |
|
|
$ |
73,451 |
|
|
$ |
97,546 |
|
Securities available-for-sale |
|
|
155,663 |
|
|
|
188,516 |
|
|
|
182,355 |
|
|
|
167,213 |
|
|
|
171,337 |
|
Securities held-to-maturity |
|
|
46,458 |
|
|
|
46,855 |
|
|
|
46,864 |
|
|
|
46,228 |
|
|
|
43,331 |
|
Loans
held for sale |
|
|
73,573 |
|
|
|
35,371 |
|
|
|
42,111 |
|
|
|
61,252 |
|
|
|
57,014 |
|
Total
loans |
|
|
996,617 |
|
|
|
1,003,434 |
|
|
|
935,251 |
|
|
|
924,031 |
|
|
|
887,437 |
|
Allowance
for loan losses |
|
|
(12,454 |
) |
|
|
(13,997 |
) |
|
|
(11,634 |
) |
|
|
(11,510 |
) |
|
|
(10,454 |
) |
Total
assets |
|
|
1,371,626 |
|
|
|
1,381,703 |
|
|
|
1,333,675 |
|
|
|
1,318,057 |
|
|
|
1,310,418 |
|
Non-interest-bearing deposits |
|
|
231,169 |
|
|
|
223,450 |
|
|
|
197,788 |
|
|
|
191,469 |
|
|
|
193,542 |
|
Interest-bearing deposits |
|
|
889,816 |
|
|
|
934,545 |
|
|
|
930,935 |
|
|
|
944,590 |
|
|
|
949,759 |
|
Federal
Home Loan Bank advances |
|
|
105,000 |
|
|
|
75,000 |
|
|
|
55,000 |
|
|
|
30,000 |
|
|
|
40,000 |
|
Total
liabilities |
|
|
1,233,596 |
|
|
|
1,241,491 |
|
|
|
1,194,468 |
|
|
|
1,179,631 |
|
|
|
1,196,100 |
|
Shareholders' equity |
|
|
138,030 |
|
|
|
140,211 |
|
|
|
139,207 |
|
|
|
138,427 |
|
|
|
114,318 |
|
Total
shares of common stock outstanding |
|
|
11,235,255 |
|
|
|
11,218,328 |
|
|
|
11,204,515 |
|
|
|
11,191,021 |
|
|
|
8,683,902 |
|
Total
shares of preferred stock outstanding |
|
|
878,049 |
|
|
|
878,049 |
|
|
|
878,049 |
|
|
|
878,049 |
|
|
|
1,609,756 |
|
Book
value per share of common stock |
|
|
11.48 |
|
|
|
11.70 |
|
|
|
11.62 |
|
|
|
11.57 |
|
|
|
11.26 |
|
Market
value per share of common stock (1) |
|
|
17.74 |
|
|
|
19.07 |
|
|
|
21.96 |
|
|
|
16.92 |
|
|
|
- |
|
Capital
ratios: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
risk based capital |
|
|
11.51 |
% |
|
|
12.13 |
% |
|
|
12.60 |
% |
|
|
12.45 |
% |
|
|
10.67 |
% |
Tier 1
risk based capital |
|
|
10.54 |
% |
|
|
11.01 |
% |
|
|
11.61 |
% |
|
|
11.46 |
% |
|
|
9.73 |
% |
Common
equity tier 1 capital |
|
|
9.86 |
% |
|
|
10.32 |
% |
|
|
10.90 |
% |
|
|
10.75 |
% |
|
|
8.34 |
% |
Leverage |
|
|
9.77 |
% |
|
|
10.37 |
% |
|
|
10.46 |
% |
|
|
10.47 |
% |
|
|
8.90 |
% |
(1) CapStar Financial Holdings, Inc. completed its initial public
offering during the third quarter of 2016. As such, market
values per share of common stock are not provided for previous
periods.
This information is preliminary and based on company data
available at the time of the presentation.
|
|
CAPSTAR FINANCIAL HOLDINGS, INC. AND
SUBSIDIARY |
|
Selected Quarterly Financial Data (unaudited) (dollars in
thousands, except share data) |
|
Second Quarter 2017 Earnings Release |
|
|
|
|
|
Five Quarter Comparison |
|
|
|
6/30/17 |
|
|
3/31/17 |
|
|
12/31/16 |
|
|
9/30/16 |
|
|
6/30/16 |
|
Average Balance
Sheet Data: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average
cash and cash equivalents |
|
$ |
62,002 |
|
|
$ |
58,925 |
|
|
$ |
66,758 |
|
|
$ |
55,054 |
|
|
$ |
56,459 |
|
Average
investment securities |
|
|
227,431 |
|
|
|
237,084 |
|
|
|
226,033 |
|
|
|
218,463 |
|
|
|
232,588 |
|
Average
loans held for sale |
|
|
34,690 |
|
|
|
28,359 |
|
|
|
52,483 |
|
|
|
63,640 |
|
|
|
43,055 |
|
Average
loans |
|
|
1,028,968 |
|
|
|
974,350 |
|
|
|
938,887 |
|
|
|
918,302 |
|
|
|
873,984 |
|
Average
assets |
|
|
1,393,331 |
|
|
|
1,340,237 |
|
|
|
1,324,620 |
|
|
|
1,296,871 |
|
|
|
1,247,077 |
|
Average
interest bearing deposits |
|
|
882,722 |
|
|
|
933,328 |
|
|
|
942,923 |
|
|
|
944,794 |
|
|
|
909,028 |
|
Average
total deposits |
|
|
1,111,833 |
|
|
|
1,143,636 |
|
|
|
1,138,779 |
|
|
|
1,132,038 |
|
|
|
1,093,452 |
|
Average
Federal Home Loan Bank advances |
|
|
128,901 |
|
|
|
43,837 |
|
|
|
33,478 |
|
|
|
29,565 |
|
|
|
27,418 |
|
Average
liabilities |
|
|
1,250,544 |
|
|
|
1,198,686 |
|
|
|
1,185,091 |
|
|
|
1,179,480 |
|
|
|
1,134,506 |
|
Average
shareholders' equity |
|
|
142,787 |
|
|
|
141,551 |
|
|
|
139,529 |
|
|
|
117,390 |
|
|
|
112,571 |
|
Performance
Ratios: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Annualized return on average assets |
|
|
-0.96 |
% |
|
|
0.10 |
% |
|
|
0.88 |
% |
|
|
0.65 |
% |
|
|
0.80 |
% |
Annualized return on average equity |
|
|
-9.39 |
% |
|
|
0.95 |
% |
|
|
8.35 |
% |
|
|
7.15 |
% |
|
|
8.85 |
% |
Net
interest margin |
|
|
3.15 |
% |
|
|
3.12 |
% |
|
|
3.17 |
% |
|
|
3.23 |
% |
|
|
3.09 |
% |
Annualized Non-interest income to average assets |
|
|
0.77 |
% |
|
|
0.65 |
% |
|
|
0.89 |
% |
|
|
0.98 |
% |
|
|
0.83 |
% |
Efficiency ratio |
|
|
62.1 |
% |
|
|
69.4 |
% |
|
|
65.8 |
% |
|
|
64.0 |
% |
|
|
67.6 |
% |
Loans by
Type: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial and industrial |
|
$ |
406,636 |
|
|
$ |
420,825 |
|
|
$ |
379,620 |
|
|
$ |
389,718 |
|
|
$ |
389,088 |
|
Commercial real estate - owner occupied |
|
|
97,635 |
|
|
|
92,213 |
|
|
|
106,735 |
|
|
|
108,921 |
|
|
|
104,345 |
|
Commercial real estate - non-owner occupied |
|
|
288,123 |
|
|
|
268,742 |
|
|
|
195,587 |
|
|
|
163,626 |
|
|
|
171,426 |
|
Construction and development |
|
|
62,152 |
|
|
|
74,007 |
|
|
|
94,491 |
|
|
|
91,366 |
|
|
|
63,744 |
|
Consumer
real estate |
|
|
99,751 |
|
|
|
99,952 |
|
|
|
97,015 |
|
|
|
96,919 |
|
|
|
91,091 |
|
Consumer |
|
|
4,096 |
|
|
|
4,495 |
|
|
|
5,974 |
|
|
|
7,046 |
|
|
|
7,486 |
|
Other |
|
|
38,783 |
|
|
|
43,983 |
|
|
|
56,796 |
|
|
|
67,806 |
|
|
|
61,670 |
|
Asset Quality
Data: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Allowance
for loan losses to total loans |
|
|
1.25 |
% |
|
|
1.39 |
% |
|
|
1.24 |
% |
|
|
1.25 |
% |
|
|
1.18 |
% |
Allowance
for loan losses to non-performing loans |
|
|
386 |
% |
|
|
103 |
% |
|
|
321 |
% |
|
|
279 |
% |
|
|
179 |
% |
Nonaccrual loans |
|
$ |
3,229 |
|
|
$ |
13,624 |
|
|
$ |
3,619 |
|
|
$ |
4,123 |
|
|
$ |
5,829 |
|
Troubled
debt restructurings |
|
|
1,239 |
|
|
|
1,256 |
|
|
|
1,272 |
|
|
|
1,288 |
|
|
|
- |
|
Loans -
90 days past due and accruing |
|
|
15 |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
Total
non-performing loans |
|
|
3,229 |
|
|
|
13,624 |
|
|
|
3,619 |
|
|
|
4,123 |
|
|
|
5,829 |
|
OREO and
repossessed assets |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
Total
non-performing assets |
|
|
3,229 |
|
|
|
13,624 |
|
|
|
3,619 |
|
|
|
4,123 |
|
|
|
5,829 |
|
Non-performing loans to total loans |
|
|
0.32 |
% |
|
|
1.36 |
% |
|
|
0.39 |
% |
|
|
0.45 |
% |
|
|
0.66 |
% |
Non-performing assets to total assets |
|
|
0.24 |
% |
|
|
0.99 |
% |
|
|
0.27 |
% |
|
|
0.31 |
% |
|
|
0.44 |
% |
Non-performing assets to total loans and OREO |
|
|
0.32 |
% |
|
|
1.36 |
% |
|
|
0.39 |
% |
|
|
0.45 |
% |
|
|
0.66 |
% |
Annualized net charge-offs to average loans |
|
|
4.38 |
% |
|
|
0.43 |
% |
|
|
-0.02 |
% |
|
|
0.25 |
% |
|
|
0.01 |
% |
Net
charge-offs (recoveries) |
|
$ |
11,233 |
|
|
$ |
1,041 |
|
|
$ |
(53 |
) |
|
$ |
582 |
|
|
$ |
28 |
|
Interest Rates
and Yields: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans |
|
|
4.29 |
% |
|
|
4.24 |
% |
|
|
4.32 |
% |
|
|
4.36 |
% |
|
|
4.24 |
% |
Securities |
|
|
2.44 |
% |
|
|
2.37 |
% |
|
|
2.19 |
% |
|
|
2.10 |
% |
|
|
2.15 |
% |
Total
interest-earning assets |
|
|
3.85 |
% |
|
|
3.77 |
% |
|
|
3.74 |
% |
|
|
3.79 |
% |
|
|
3.66 |
% |
Deposits |
|
|
0.70 |
% |
|
|
0.67 |
% |
|
|
0.57 |
% |
|
|
0.58 |
% |
|
|
0.59 |
% |
Borrowings and repurchase agreements |
|
|
1.18 |
% |
|
|
1.30 |
% |
|
|
2.32 |
% |
|
|
1.25 |
% |
|
|
1.31 |
% |
Total
interest-bearing liabilities |
|
|
0.92 |
% |
|
|
0.85 |
% |
|
|
0.74 |
% |
|
|
0.71 |
% |
|
|
0.73 |
% |
Other
Information: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Full-time
equivalent employees |
|
169 |
|
|
168 |
|
|
170 |
|
|
168 |
|
|
166 |
|
This information is preliminary and based on company data
available at the time of the presentation.
|
|
CAPSTAR FINANCIAL HOLDINGS, INC. AND
SUBSIDIARY |
|
Analysis of Interest Income and Expense, Rates and
Yields (unaudited) (dollars in thousands) |
|
Second Quarter 2017 Earnings Release |
|
|
|
|
|
For the Three Months Ended
June 30, |
|
|
|
2017 |
|
|
2016 |
|
|
|
AverageOutstandingBalance |
|
|
InterestIncome/Expense |
|
|
AverageYield/Rate |
|
|
AverageOutstandingBalance |
|
|
InterestIncome/Expense |
|
|
AverageYield/Rate |
|
Interest-Earning
Assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans
(1) |
|
$ |
1,028,968 |
|
|
$ |
11,011 |
|
|
|
4.29 |
% |
|
$ |
873,984 |
|
|
$ |
9,204 |
|
|
|
4.24 |
% |
Loans
held for sale |
|
|
34,690 |
|
|
|
362 |
|
|
|
4.18 |
% |
|
|
43,055 |
|
|
|
401 |
|
|
|
3.74 |
% |
Securities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Taxable
investment securities (2) |
|
|
174,075 |
|
|
|
1,069 |
|
|
|
2.46 |
% |
|
|
187,309 |
|
|
|
981 |
|
|
|
2.09 |
% |
Investment securities exempt from federal income tax (3) |
|
|
53,356 |
|
|
|
317 |
|
|
|
2.38 |
% |
|
|
45,279 |
|
|
|
268 |
|
|
|
2.37 |
% |
Total
securities |
|
|
227,431 |
|
|
|
1,386 |
|
|
|
2.44 |
% |
|
|
232,588 |
|
|
|
1,249 |
|
|
|
2.15 |
% |
Cash
balances in other banks |
|
|
49,735 |
|
|
|
115 |
|
|
|
0.93 |
% |
|
|
46,787 |
|
|
|
56 |
|
|
|
0.49 |
% |
Funds
sold |
|
|
3,637 |
|
|
|
16 |
|
|
|
1.78 |
% |
|
|
1,952 |
|
|
|
4 |
|
|
|
0.90 |
% |
Total interest-earning
assets |
|
|
1,344,461 |
|
|
|
12,890 |
|
|
|
3.85 |
% |
|
|
1,198,366 |
|
|
|
10,914 |
|
|
|
3.66 |
% |
Noninterest-earning assets |
|
|
48,869 |
|
|
|
|
|
|
|
|
|
|
|
48,712 |
|
|
|
|
|
|
|
|
|
Total assets |
|
$ |
1,393,330 |
|
|
|
|
|
|
|
|
|
|
$ |
1,247,078 |
|
|
|
|
|
|
|
|
|
Interest-Bearing
Liabilities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing deposits: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing transaction accounts |
|
$ |
302,532 |
|
|
|
586 |
|
|
|
0.78 |
% |
|
$ |
282,299 |
|
|
|
390 |
|
|
|
0.56 |
% |
Savings
and money market deposits |
|
|
379,800 |
|
|
|
773 |
|
|
|
0.82 |
% |
|
|
444,558 |
|
|
|
719 |
|
|
|
0.65 |
% |
Time
deposits |
|
|
200,389 |
|
|
|
574 |
|
|
|
1.15 |
% |
|
|
182,171 |
|
|
|
506 |
|
|
|
1.12 |
% |
Total
interest-bearing deposits |
|
|
882,721 |
|
|
|
1,933 |
|
|
|
0.88 |
% |
|
|
909,028 |
|
|
|
1,615 |
|
|
|
0.71 |
% |
Borrowings and repurchase agreements |
|
|
130,824 |
|
|
|
386 |
|
|
|
1.18 |
% |
|
|
30,000 |
|
|
|
98 |
|
|
|
1.31 |
% |
Total interest-bearing
liabilities |
|
|
1,013,545 |
|
|
|
2,319 |
|
|
|
0.92 |
% |
|
|
939,028 |
|
|
|
1,713 |
|
|
|
0.73 |
% |
Noninterest-bearing deposits |
|
|
229,111 |
|
|
|
|
|
|
|
|
|
|
|
184,425 |
|
|
|
|
|
|
|
|
|
Total funding
sources |
|
|
1,242,656 |
|
|
|
|
|
|
|
|
|
|
|
1,123,453 |
|
|
|
|
|
|
|
|
|
Noninterest-bearing liabilities |
|
|
7,887 |
|
|
|
|
|
|
|
|
|
|
|
11,054 |
|
|
|
|
|
|
|
|
|
Shareholders’ equity |
|
|
142,787 |
|
|
|
|
|
|
|
|
|
|
|
112,571 |
|
|
|
|
|
|
|
|
|
Total liabilities and
shareholders’ equity |
|
$ |
1,393,330 |
|
|
|
|
|
|
|
|
|
|
$ |
1,247,078 |
|
|
|
|
|
|
|
|
|
Net interest spread
(4) |
|
|
|
|
|
|
|
|
|
|
2.93 |
% |
|
|
|
|
|
|
|
|
|
|
2.93 |
% |
Net interest
income/margin (5) |
|
|
|
|
|
$ |
10,571 |
|
|
|
3.15 |
% |
|
|
|
|
|
$ |
9,201 |
|
|
|
3.09 |
% |
(1) Average loan balances include nonaccrual loans.
Interest income on loans includes amortization of deferred loan
fees, net of deferred loan costs.(2) Taxable investment securities
include restricted equity securities.(3) Balances for investment
securities exempt from federal income tax are not calculated on a
tax equivalent basis.(4) Net interest spread is the average yield
on total average interest-earning assets minus the average rate on
total average interest-bearing liabilities.(5) Net interest margin
is net interest income divided by total average interest-earning
assets and is presented in the table above on an annualized
basis.
This information is preliminary and based on company data
available at the time of the presentation.
|
|
CAPSTAR FINANCIAL HOLDINGS, INC. AND
SUBSIDIARY |
|
Analysis of Interest Income and Expense, Rates and
Yields (unaudited) (dollars in thousands) |
|
Second Quarter 2017 Earnings Release |
|
|
|
|
|
For the Six Months Ended
June 30, |
|
|
|
2017 |
|
|
2016 |
|
|
|
AverageOutstandingBalance |
|
|
InterestIncome/Expense |
|
|
AverageYield/Rate |
|
|
AverageOutstandingBalance |
|
|
InterestIncome/Expense |
|
|
AverageYield/Rate |
|
Interest-Earning
Assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans
(1) |
|
$ |
1,001,810 |
|
|
$ |
21,205 |
|
|
|
4.27 |
% |
|
$ |
848,048 |
|
|
$ |
18,180 |
|
|
|
4.31 |
% |
Loans
held for sale |
|
|
31,542 |
|
|
|
635 |
|
|
|
4.06 |
% |
|
|
36,427 |
|
|
|
693 |
|
|
|
3.83 |
% |
Securities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Taxable
investment securities (2) |
|
|
177,840 |
|
|
|
2,150 |
|
|
|
2.42 |
% |
|
|
182,436 |
|
|
|
1,949 |
|
|
|
2.14 |
% |
Investment securities exempt from federal income tax (3) |
|
|
54,391 |
|
|
|
642 |
|
|
|
2.36 |
% |
|
|
43,999 |
|
|
|
549 |
|
|
|
2.50 |
% |
Total
securities |
|
|
232,231 |
|
|
|
2,792 |
|
|
|
2.40 |
% |
|
|
226,435 |
|
|
|
2,498 |
|
|
|
2.21 |
% |
Cash
balances in other banks |
|
|
48,893 |
|
|
|
219 |
|
|
|
0.91 |
% |
|
|
51,607 |
|
|
|
133 |
|
|
|
0.52 |
% |
Funds
sold |
|
|
2,689 |
|
|
|
18 |
|
|
|
1.39 |
% |
|
|
2,328 |
|
|
|
9 |
|
|
|
0.74 |
% |
Total interest-earning
assets |
|
|
1,317,165 |
|
|
|
24,869 |
|
|
|
3.81 |
% |
|
|
1,164,845 |
|
|
|
21,513 |
|
|
|
3.71 |
% |
Noninterest-earning assets |
|
|
49,766 |
|
|
|
|
|
|
|
|
|
|
|
49,407 |
|
|
|
|
|
|
|
|
|
Total assets |
|
$ |
1,366,931 |
|
|
|
|
|
|
|
|
|
|
$ |
1,214,252 |
|
|
|
|
|
|
|
|
|
Interest-Bearing
Liabilities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing deposits: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing transaction accounts |
|
$ |
316,502 |
|
|
|
1,204 |
|
|
|
0.77 |
% |
|
$ |
242,791 |
|
|
|
692 |
|
|
|
0.57 |
% |
Savings
and money market deposits |
|
|
406,937 |
|
|
|
1,587 |
|
|
|
0.79 |
% |
|
|
445,224 |
|
|
|
1,451 |
|
|
|
0.66 |
% |
Time
deposits |
|
|
184,446 |
|
|
|
1,046 |
|
|
|
1.14 |
% |
|
|
185,475 |
|
|
|
1,020 |
|
|
|
1.11 |
% |
Total
interest-bearing deposits |
|
|
907,885 |
|
|
|
3,837 |
|
|
|
0.85 |
% |
|
|
873,490 |
|
|
|
3,163 |
|
|
|
0.73 |
% |
Borrowings and repurchase agreements |
|
|
88,206 |
|
|
|
530 |
|
|
|
1.21 |
% |
|
|
30,399 |
|
|
|
192 |
|
|
|
1.27 |
% |
Total interest-bearing
liabilities |
|
|
996,091 |
|
|
|
4,367 |
|
|
|
0.88 |
% |
|
|
903,889 |
|
|
|
3,355 |
|
|
|
0.75 |
% |
Noninterest-bearing deposits |
|
|
219,762 |
|
|
|
|
|
|
|
|
|
|
|
186,965 |
|
|
|
|
|
|
|
|
|
Total funding
sources |
|
|
1,215,853 |
|
|
|
|
|
|
|
|
|
|
|
1,090,854 |
|
|
|
|
|
|
|
|
|
Noninterest-bearing liabilities |
|
|
8,905 |
|
|
|
|
|
|
|
|
|
|
|
11,703 |
|
|
|
|
|
|
|
|
|
Shareholders’ equity |
|
|
142,173 |
|
|
|
|
|
|
|
|
|
|
|
111,695 |
|
|
|
|
|
|
|
|
|
Total liabilities and
shareholders’ equity |
|
$ |
1,366,931 |
|
|
|
|
|
|
|
|
|
|
$ |
1,214,252 |
|
|
|
|
|
|
|
|
|
Net interest spread
(4) |
|
|
|
|
|
|
|
|
|
|
2.92 |
% |
|
|
|
|
|
|
|
|
|
|
2.97 |
% |
Net interest
income/margin (5) |
|
|
|
|
|
$ |
20,502 |
|
|
|
3.14 |
% |
|
|
|
|
|
$ |
18,158 |
|
|
|
3.13 |
% |
(1) Average loan balances include nonaccrual loans.
Interest income on loans includes amortization of deferred loan
fees, net of deferred loan costs.(2) Taxable investment securities
include restricted equity securities.(3) Balances for investment
securities exempt from federal income tax are not calculated on a
tax equivalent basis.(4) Net interest spread is the average yield
on total average interest-earning assets minus the average rate on
total average interest-bearing liabilities.(5) Net interest margin
is net interest income divided by total average interest-earning
assets and is presented in the table above on an annualized
basis.
This information is preliminary and based on company data
available at the time of the presentation.
|
|
CAPSTAR FINANCIAL HOLDINGS, INC. AND
SUBSIDIARY |
|
Non-GAAP Financial Measures (unaudited) (dollars in
thousands) |
|
Second Quarter 2017 Earnings Release |
|
|
|
|
|
Three Months Ended |
|
|
|
June 30, |
|
|
|
2017 |
|
|
2016 |
|
Pre-Tax Pre-Provision
Income: |
|
|
|
|
|
|
|
|
Income
(loss) before income taxes
|
|
$ |
(4,670 |
) |
|
$ |
3,635 |
|
Add: provision for loan losses |
|
|
9,690 |
|
|
|
183 |
|
Pre-tax
pre-provision income |
|
$ |
5,020 |
|
|
$ |
3,818 |
|
|
|
FOR MORE INFORMATION, CONTACT
Rob Anderson
Chief Financial Officer and Chief Administrative Officer
(615) 732-6470
CapStar Financial (NASDAQ:CSTR)
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