Attached files
| file | filename |
|---|---|
| 8-K - 8-K - CapStar Financial Holdings, Inc. | cstr-8k_20200427.htm |
Exhibit 99.1
EARNINGS RELEASE
CONTACT
Rob Anderson
Chief Financial Officer and Chief Administrative Officer
(615) 732-6470
CapStar Financial Holdings, Inc. Report First Quarter 2020 Results
Entering Cycle with Strong Balance Sheet Position
NASHVILLE, TN, April 27, 2020/GlobeNewswire/ -- CapStar Financial Holdings, Inc. (“CapStar”) (NASDAQ:CSTR) reported first quarter net income of $1.3 million, pre-tax pre-provision income of $8.3 million, and increased its allowance for loan losses $7.5 million based on an initial assessment of the range of potential impacts from the COVID-19 pandemic to its loan portfolio. As a result, CapStar’s allowance for loan losses to total loans increased during the quarter from 0.89 percent to 1.39 percent at March 31, 2020. Fully diluted earnings per share were $0.07, compared to $0.25 from a year ago. Excluding merger-related and other charges, operating(1) earnings per share were $0.08.
“I am pleased with the quality and improvement in our first quarter pre-tax pre-provision earnings, given how challenging the industry’s outlook was for 2020,” said Timothy K. Schools, CapStar’s president and chief executive officer. “Mid-quarter, our attention quickly and unexpectedly pivoted to addressing the impacts of COVID-19. I could not be prouder of what our teammates have accomplished working together to support each other, clients, and communities. It is unimaginable that over the last forty-five days we mobilized 100% of our non-branch employees to work from home, served our clients solely through online banking and drive thru locations, and responded and processed approximately 1,700 applications for the Small Business Administration’s Paycheck Protection Program.”
“Importantly, our leadership team proactively enacted well thought out pandemic procedures,” Schools continued. “Forward thinking in technology investments, liquidity planning, credit administration, and capital planning positions us well as we enter the current cycle. We believe in and are excited about our communities and look forward to continuing to be a leader as we all work together to navigate this environment. While we will face uncertain challenges in the near-term and loan losses are likely, we are cautiously optimistic with the initial assessment of our credit risk.”
Soundness
|
|
• |
Annualized net charge-offs to average loans were 0.01% for the three months ended March 31, 2020 compared to 0.01% for the same period in 2019. |
|
|
• |
Non-performing assets to total loans and OREO were 0.26% at March 31, 2020 compared to 0.19% at March 31, 2019. |
|
|
• |
The leverage ratio was 11.19% at March 31, 2020 compared to 10.97% at March 31, 2019. |
|
|
• |
The total risk based capital ratio was 13.64% at March 31, 2020 compared to 12.64% at March 31, 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 for the three months ended March 31, 2020 was 3.50% compared to 3.75% for the same period in 2019. |
|
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• |
The operating efficiency ratio for the three months ended March 31, 2020 was 61.78% compared to 65.01% for the same period in 2019. |
|
|
• |
Operating annualized pre-tax pre-provision income to average assets for the three months ended March 31, 2020 was 1.68% compared to 1.55% for the same period in 2019. |
|
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• |
Operating annualized return on average assets for the three months ended March 31, 2020 was 0.30% compared to 1.06% for the same period in 2019. |
|
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• |
Operating annualized return on average tangible equity for the three months ended March 31, 2020 was 2.68% compared to 10.02% for the same period in 2019. |
Growth
|
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• |
Average deposits for the quarter ended March 31, 2020 increased 9.3% to $1.74 billion, compared to $1.59 billion for the same period in 2019. |
|
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• |
Average gross loans for the quarter ended March 31, 2020 fell 2.8% to $1.42 billion, compared to $1.46 billion for the same period in 2019. |
|
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• |
Pre-tax pre-provision earnings for the quarter ended March 31, 2020 increased 18.7% to $8.3 million, compared to $7.0 million for the quarter ended March 31, 2019. |
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• |
Tangible book value per share for the quarter ended March 31, 2020 increased 9.6% to $12.66, compared to $11.55 for the quarter ended March 31, 2019. |
Dividend
As previously announced on April 22, 2020, the board of directors of CapStar approved a quarterly dividend of $0.05 per common share that will be paid on May 29, 2020 to shareholders of record of CapStar’s common stock as of the close of business on May 15, 2020.
Conference Call and Webcast Information
CapStar will host a conference call and webcast at 8:30 a.m. Central Time on Tuesday, April 28, 2020. During the call, management will review the first quarter results and operational highlights. Interested parties may listen to the call by dialing (844) 412-1002. The conference ID number is 2681305. 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 March 31, 2020, on a consolidated basis, CapStar had total assets of $2.07 billion, gross loans of $1.45 billion, total deposits of $1.76 billion, and shareholders’ equity of $275.8 million. Visit www.capstarbank.com for more information.
FORWARD-LOOKING STATEMENTS
This release contains forward-looking statements, as defined by federal securities laws, including statements about CapStar Financial Holdings, Inc. (“CapStar”) and its financial outlook and business environment. These statements are based on current expectations and are provided to assist in the understanding of our operations and future financial performance. Our operations and such performance involves risks and uncertainties, including but in no way limited to the effect of the COVID-19 pandemic, that may cause actual results to differ materially from those expressed or implied in
any such statements. For a discussion of some of the risks and other factors that may cause such forward-looking statements to differ materially from actual results, please refer to CapStar’s filings with the Securities and Exchange Commission, including its 2019 Annual Report on Form 10-K under the sections entitled “Forward-Looking Statements” and “Item 1A Risk Factors.” Forward-looking statements speak only as of the date they are made, and except as otherwise required by applicable law, we undertake no obligation to update or revise forward-looking statements.
NON-GAAP MEASURES
This release includes financial information determined by methods other than in accordance with generally accepted accounting principles (“GAAP”). This financial information includes certain operating performance measures, which exclude merger-related and other charges that are not considered part of recurring operations. Such measures include: “Efficiency ratio – operating,” “Expenses – operating,” “Earnings per share – operating,” “Diluted earnings per share – operating,” “Tangible book value per share,” “Return on common equity – operating,” “Return on tangible common equity – operating,” “Return on assets – operating,” and “Tangible common equity to tangible assets.”
Management has included these non-GAAP measures because it believes these measures may provide useful supplemental information for evaluating CapStar’s underlying performance trends. Further, management uses these measures in managing and evaluating CapStar’s business and intends to refer to them in discussions about our operations and performance. Operating performance measures should be viewed in addition to, and not as an alternative to or substitute for, measures determined in accordance with GAAP, and are not necessarily comparable to non-GAAP measures that may be presented by other companies. To the extent applicable, reconciliations of these non-GAAP measures to the most directly comparable GAAP measures can be found in the ‘Non-GAAP Reconciliation Tables’ included in the exhibits to this presentation.
CAPSTAR FINANCIAL HOLDINGS, INC. AND SUBSIDIARY
Consolidated Statements of Income (unaudited) (dollars in thousands, except share data)
First Quarter 2020 Earnings Release
|
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Three Months Ended |
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|||||
|
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March 31, |
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|||||
|
|
|
2020 |
|
|
2019 |
|
||
|
Interest income: |
|
|
|
|
|
|
|
|
|
Loans, including fees |
|
$ |
19,738 |
|
|
$ |
20,592 |
|
|
Securities: |
|
|
|
|
|
|
|
|
|
Taxable |
|
|
1,174 |
|
|
|
1,346 |
|
|
Tax-exempt |
|
|
321 |
|
|
|
377 |
|
|
Federal funds sold |
|
|
— |
|
|
|
19 |
|
|
Restricted equity securities |
|
|
142 |
|
|
|
187 |
|
|
Interest-bearing deposits in financial institutions |
|
|
363 |
|
|
|
446 |
|
|
Total interest income |
|
|
21,738 |
|
|
|
22,967 |
|
|
Interest expense: |
|
|
|
|
|
|
|
|
|
Interest-bearing deposits |
|
|
1,901 |
|
|
|
1,594 |
|
|
Savings and money market accounts |
|
|
1,551 |
|
|
|
1,718 |
|
|
Time deposits |
|
|
1,481 |
|
|
|
1,813 |
|
|
Federal funds purchased |
|
|
— |
|
|
|
4 |
|
|
Securities sold under agreements to repurchase |
|
|
— |
|
|
|
5 |
|
|
Federal Home Loan Bank advances |
|
|
144 |
|
|
|
831 |
|
|
Total interest expense |
|
|
5,077 |
|
|
|
5,965 |
|
|
Net interest income |
|
|
16,661 |
|
|
|
17,002 |
|
|
Provision for loan losses |
|
|
7,553 |
|
|
|
886 |
|
|
Net interest income after provision for loan losses |
|
|
9,108 |
|
|
|
16,116 |
|
|
Noninterest income: |
|
|
|
|
|
|
|
|
|
Treasury management and other deposit service charges |
|
|
775 |
|
|
|
798 |
|
|
Net gain on sale of securities |
|
|
27 |
|
|
|
12 |
|
|
Tri-Net fees |
|
|
599 |
|
|
|
641 |
|
|
Mortgage banking income |
|
|
2,253 |
|
|
|
1,385 |
|
|
Wealth management fees |
|
|
407 |
|
|
|
306 |
|
|
Interchange and debit card transaction fees |
|
|
724 |
|
|
|
579 |
|
|
Other noninterest income |
|
|
1,089 |
|
|
|
1,014 |
|
|
Total noninterest income |
|
|
5,874 |
|
|
|
4,735 |
|
|
Noninterest expense: |
|
|
|
|
|
|
|
|
|
Salaries and employee benefits |
|
|
8,002 |
|
|
|
8,432 |
|
|
Data processing and software |
|
|
1,864 |
|
|
|
1,474 |
|
|
Professional fees |
|
|
636 |
|
|
|
543 |
|
|
Occupancy |
|
|
820 |
|
|
|
883 |
|
|
Equipment |
|
|
751 |
|
|
|
852 |
|
|
Regulatory fees |
|
|
163 |
|
|
|
274 |
|
|
Merger related expenses |
|
|
290 |
|
|
|
594 |
|
|
Amortization of intangibles |
|
|
386 |
|
|
|
430 |
|
|
Other operating |
|
|
1,299 |
|
|
|
1,243 |
|
|
Total noninterest expense |
|
|
14,211 |
|
|
|
14,725 |
|
|
Income before income taxes |
|
|
771 |
|
|
|
6,126 |
|
|
Income tax expense (benefit) |
|
|
(575 |
) |
|
|
1,346 |
|
|
Net income |
|
$ |
1,346 |
|
|
$ |
4,780 |
|
|
Per share information: |
|
|
|
|
|
|
|
|
|
Basic net income per share of common stock |
|
$ |
0.07 |
|
|
$ |
0.27 |
|
|
Diluted net income per share of common stock |
|
$ |
0.07 |
|
|
$ |
0.25 |
|
|
Weighted average shares outstanding: |
|
|
|
|
|
|
|
|
|
Basic |
|
|
18,392,913 |
|
|
|
17,783,239 |
|
|
Diluted |
|
|
18,443,725 |
|
|
|
18,830,933 |
|
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)
First Quarter 2020 Earnings Release
|
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|
Five Quarter Comparison |
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|
3/31/20 |
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|
12/31/19 |
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|
9/30/19 |
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|
6/30/19 |
|
|
3/31/19 |
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|||||
|
Income Statement Data: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income |
|
$ |
16,661 |
|
|
$ |
16,581 |
|
|
$ |
17,156 |
|
|
$ |
17,008 |
|
|
$ |
17,002 |
|
|
Provision for loan losses |
|
|
7,553 |
|
|
|
— |
|
|
|
(125 |
) |
|
|
— |
|
|
|
886 |
|
|
Net interest income after provision for loan losses |
|
|
9,108 |
|
|
|
16,581 |
|
|
|
17,281 |
|
|
|
17,008 |
|
|
|
16,116 |
|
|
Treasury management and other deposit service charges |
|
|
775 |
|
|
|
736 |
|
|
|
788 |
|
|
|
813 |
|
|
|
798 |
|
|
Net gain (loss) on sale of securities |
|
|
27 |
|
|
|
9 |
|
|
|
— |
|
|
|
(121 |
) |
|
|
12 |
|
|
Tri-Net fees |
|
|
599 |
|
|
|
274 |
|
|
|
847 |
|
|
|
1,024 |
|
|
|
641 |
|
|
Mortgage banking income |
|
|
2,253 |
|
|
|
2,316 |
|
|
|
2,679 |
|
|
|
3,087 |
|
|
|
1,385 |
|
|
Wealth management fees |
|
|
407 |
|
|
|
407 |
|
|
|
379 |
|
|
|
334 |
|
|
|
306 |
|
|
Interchange and debit card transaction fees |
|
|
724 |
|
|
|
928 |
|
|
|
754 |
|
|
|
991 |
|
|
|
579 |
|
|
Other noninterest income |
|
|
1,089 |
|
|
|
1,049 |
|
|
|
1,341 |
|
|
|
904 |
|
|
|
1,014 |
|
|
Total noninterest income |
|
|
5,874 |
|
|
|
5,719 |
|
|
|
6,788 |
|
|
|
7,032 |
|
|
|
4,735 |
|
|
Salaries and employee benefits |
|
|
8,002 |
|
|
|
9,318 |
|
|
|
9,229 |
|
|
|
8,563 |
|
|
|
8,432 |
|
|
Data processing and software |
|
|
1,864 |
|
|
|
1,835 |
|
|
|
1,790 |
|
|
|
1,862 |
|
|
|
1,474 |
|
|
Professional fees |
|
|
636 |
|
|
|
531 |
|
|
|
528 |
|
|
|
501 |
|
|
|
543 |
|
|
Occupancy |
|
|
820 |
|
|
|
795 |
|
|
|
858 |
|
|
|
809 |
|
|
|
883 |
|
|
Equipment |
|
|
751 |
|
|
|
834 |
|
|
|
1,012 |
|
|
|
1,026 |
|
|
|
852 |
|
|
Regulatory fees |
|
|
163 |
|
|
|
28 |
|
|
|
18 |
|
|
|
272 |
|
|
|
274 |
|
|
Merger related expenses |
|
|
290 |
|
|
|
163 |
|
|
|
187 |
|
|
|
1,711 |
|
|
|
594 |
|
|
Amortization of intangibles |
|
|
386 |
|
|
|
397 |
|
|
|
408 |
|
|
|
419 |
|
|
|
430 |
|
|
Other operating |
|
|
1,299 |
|
|
|
1,365 |
|
|
|
1,501 |
|
|
|
1,307 |
|
|
|
1,243 |
|
|
Total noninterest expense |
|
|
14,211 |
|
|
|
15,266 |
|
|
|
15,531 |
|
|
|
16,470 |
|
|
|
14,725 |
|
|
Net income before income tax expense |
|
|
771 |
|
|
|
7,034 |
|
|
|
8,538 |
|
|
|
7,570 |
|
|
|
6,126 |
|
|
Income tax expense (benefit) |
|
|
(575 |
) |
|
|
1,613 |
|
|
|
2,072 |
|
|
|
1,814 |
|
|
|
1,346 |
|
|
Net income |
|
$ |
1,346 |
|
|
$ |
5,421 |
|
|
$ |
6,466 |
|
|
$ |
5,756 |
|
|
$ |
4,780 |
|
|
Weighted average shares - basic |
|
|
18,392,913 |
|
|
|
18,350,994 |
|
|
|
17,741,778 |
|
|
|
17,663,992 |
|
|
|
17,783,239 |
|
|
Weighted average shares - diluted |
|
|
18,443,725 |
|
|
|
18,443,916 |
|
|
|
18,532,479 |
|
|
|
18,650,706 |
|
|
|
18,830,933 |
|
|
Net income per share, basic |
|
$ |
0.07 |
|
|
$ |
0.30 |
|
|
$ |
0.36 |
|
|
$ |
0.33 |
|
|
$ |
0.27 |
|
|
Net income per share, diluted |
|
|
0.07 |
|
|
|
0.29 |
|
|
|
0.35 |
|
|
|
0.31 |
|
|
|
0.25 |
|
|
Balance Sheet Data (at period end): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
91,450 |
|
|
$ |
101,269 |
|
|
$ |
154,021 |
|
|
$ |
156,085 |
|
|
$ |
120,321 |
|
|
Securities available-for-sale |
|
|
219,213 |
|
|
|
213,129 |
|
|
|
203,500 |
|
|
|
194,957 |
|
|
|
233,691 |
|
|
Securities held-to-maturity |
|
|
3,306 |
|
|
|
3,313 |
|
|
|
3,319 |
|
|
|
3,721 |
|
|
|
3,727 |
|
|
Loans held for sale |
|
|
186,937 |
|
|
|
168,222 |
|
|
|
129,613 |
|
|
|
89,629 |
|
|
|
72,870 |
|
|
Total loans |
|
|
1,446,835 |
|
|
|
1,420,102 |
|
|
|
1,411,768 |
|
|
|
1,440,617 |
|
|
|
1,467,786 |
|
|
Allowance for loan losses |
|
|
(20,114 |
) |
|
|
(12,604 |
) |
|
|
(12,828 |
) |
|
|
(12,903 |
) |
|
|
(12,959 |
) |
|
Total assets |
|
|
2,072,585 |
|
|
|
2,037,201 |
|
|
|
2,033,911 |
|
|
|
2,018,421 |
|
|
|
2,035,811 |
|
|
Non-interest-bearing deposits |
|
|
442,789 |
|
|
|
312,096 |
|
|
|
352,266 |
|
|
|
326,550 |
|
|
|
312,597 |
|
|
Interest-bearing deposits |
|
|
1,320,920 |
|
|
|
1,417,355 |
|
|
|
1,379,497 |
|
|
|
1,396,220 |
|
|
|
1,366,205 |
|
|
Federal Home Loan Bank advances |
|
|
10,000 |
|
|
|
10,000 |
|
|
|
10,000 |
|
|
|
10,000 |
|
|
|
75,000 |
|
|
Total liabilities |
|
|
1,796,795 |
|
|
|
1,764,155 |
|
|
|
1,765,829 |
|
|
|
1,755,757 |
|
|
|
1,776,060 |
|
|
Shareholders' equity |
|
$ |
275,790 |
|
|
$ |
273,046 |
|
|
$ |
268,082 |
|
|
$ |
262,664 |
|
|
$ |
259,751 |
|
|
Total shares of common stock outstanding |
|
|
18,307,802 |
|
|
|
18,361,922 |
|
|
|
18,343,403 |
|
|
|
17,561,476 |
|
|
|
17,765,124 |
|
|
Total shares of preferred stock outstanding |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
878,048 |
|
|
|
878,048 |
|
|
Book value per share of common stock |
|
$ |
15.06 |
|
|
$ |
14.87 |
|
|
$ |
14.61 |
|
|
$ |
14.44 |
|
|
$ |
14.11 |
|
|
Tangible book value per share of common stock * |
|
|
12.66 |
|
|
|
12.45 |
|
|
|
12.17 |
|
|
|
11.87 |
|
|
|
11.55 |
|
|
Market value per share of common stock |
|
$ |
9.89 |
|
|
$ |
16.65 |
|
|
$ |
16.58 |
|
|
$ |
15.15 |
|
|
$ |
14.44 |
|
|
Capital ratios: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total risk based capital |
|
|
13.64 |
% |
|
|
13.45 |
% |
|
|
13.46 |
% |
|
|
13.29 |
% |
|
|
12.64 |
% |
|
Tier 1 risk based capital |
|
|
12.51 |
% |
|
|
12.73 |
% |
|
|
12.71 |
% |
|
|
12.53 |
% |
|
|
11.90 |
% |
|
Common equity tier 1 capital |
|
|
12.51 |
% |
|
|
12.73 |
% |
|
|
12.71 |
% |
|
|
12.01 |
% |
|
|
11.40 |
% |
|
Leverage |
|
|
11.19 |
% |
|
|
11.37 |
% |
|
|
11.24 |
% |
|
|
11.01 |
% |
|
|
10.97 |
% |
_____________________
*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)
First Quarter 2020 Earnings Release
|
|
|
Five Quarter Comparison |
|
|||||||||||||||||
|
|
|
3/31/20 |
|
|
12/31/19 |
|
|
9/30/19 |
|
|
6/30/19 |
|
|
3/31/19 |
|
|||||
|
Average Balance Sheet Data: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
114,272 |
|
|
$ |
115,100 |
|
|
$ |
129,114 |
|
|
$ |
93,523 |
|
|
$ |
83,689 |
|
|
Investment securities |
|
|
226,537 |
|
|
|
225,265 |
|
|
|
211,460 |
|
|
|
228,283 |
|
|
|
251,631 |
|
|
Loans held for sale |
|
|
180,401 |
|
|
|
140,731 |
|
|
|
101,835 |
|
|
|
91,585 |
|
|
|
66,880 |
|
|
Loans |
|
|
1,421,256 |
|
|
|
1,431,027 |
|
|
|
1,445,755 |
|
|
|
1,469,210 |
|
|
|
1,461,696 |
|
|
Assets |
|
|
2,059,306 |
|
|
|
2,030,231 |
|
|
|
2,005,950 |
|
|
|
2,004,207 |
|
|
|
1,988,478 |
|
|
Interest bearing deposits |
|
|
1,411,666 |
|
|
|
1,388,496 |
|
|
|
1,370,988 |
|
|
|
1,364,211 |
|
|
|
1,299,205 |
|
|
Deposits |
|
|
1,735,635 |
|
|
|
1,711,021 |
|
|
|
1,704,873 |
|
|
|
1,678,240 |
|
|
|
1,588,317 |
|
|
Federal Home Loan Bank advances |
|
|
20,989 |
|
|
|
22,391 |
|
|
|
12,174 |
|
|
|
42,088 |
|
|
|
117,278 |
|
|
Liabilities |
|
|
1,780,756 |
|
|
|
1,758,663 |
|
|
|
1,739,509 |
|
|
|
1,743,010 |
|
|
|
1,731,373 |
|
|
Shareholders' equity |
|
|
278,550 |
|
|
|
271,568 |
|
|
|
266,441 |
|
|
|
261,197 |
|
|
|
257,105 |
|
|
Performance Ratios: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Annualized return on average assets |
|
|
0.26 |
% |
|
|
1.06 |
% |
|
|
1.28 |
% |
|
|
1.15 |
% |
|
|
0.97 |
% |
|
Annualized return on average equity |
|
|
1.94 |
% |
|
|
7.92 |
% |
|
|
9.63 |
% |
|
|
8.84 |
% |
|
|
7.54 |
% |
|
Net interest margin (1) |
|
|
3.50 |
% |
|
|
3.49 |
% |
|
|
3.66 |
% |
|
|
3.68 |
% |
|
|
3.75 |
% |
|
Annualized noninterest income to average assets |
|
|
1.15 |
% |
|
|
1.12 |
% |
|
|
1.34 |
% |
|
|
1.41 |
% |
|
|
0.97 |
% |
|
Efficiency ratio |
|
|
63.06 |
% |
|
|
68.46 |
% |
|
|
64.87 |
% |
|
|
68.51 |
% |
|
|
67.74 |
% |
|
Loans by Type (at period end): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial and industrial |
|
$ |
447,311 |
|
|
$ |
394,408 |
|
|
$ |
382,816 |
|
|
$ |
404,745 |
|
|
$ |
419,941 |
|
|
Commercial real estate - owner occupied |
|
|
166,652 |
|
|
|
172,456 |
|
|
|
169,370 |
|
|
|
173,316 |
|
|
|
170,558 |
|
|
Commercial real estate - non-owner occupied |
|
|
378,170 |
|
|
|
387,443 |
|
|
|
407,378 |
|
|
|
421,496 |
|
|
|
403,443 |
|
|
Construction and development |
|
|
141,087 |
|
|
|
143,111 |
|
|
|
132,222 |
|
|
|
123,901 |
|
|
|
162,237 |
|
|
Consumer real estate |
|
|
248,243 |
|
|
|
256,097 |
|
|
|
254,736 |
|
|
|
255,043 |
|
|
|
248,943 |
|
|
Consumer |
|
|
27,739 |
|
|
|
28,426 |
|
|
|
29,059 |
|
|
|
26,704 |
|
|
|
26,241 |
|
|
Other |
|
|
37,633 |
|
|
|
38,161 |
|
|
|
36,187 |
|
|
|
35,412 |
|
|
|
36,423 |
|
|
Asset Quality Data: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Allowance for loan losses to total loans |
|
|
1.39 |
% |
|
|
0.89 |
% |
|
|
0.91 |
% |
|
|
0.90 |
% |
|
|
0.88 |
% |
|
Allowance for loan losses to non-performing loans |
|
|
550 |
% |
|
|
861 |
% |
|
|
754 |
% |
|
|
894 |
% |
|
|
757 |
% |
|
Nonaccrual loans |
|
$ |
3,658 |
|
|
$ |
1,464 |
|
|
$ |
1,701 |
|
|
$ |
1,443 |
|
|
$ |
1,712 |
|
|
Troubled debt restructurings |
|
|
1,306 |
|
|
|
2,717 |
|
|
|
2,725 |
|
|
|
1,238 |
|
|
|
1,255 |
|
|
Loans - over 89 days past due and accruing |
|
|
399 |
|
|
|
38 |
|
|
|
551 |
|
|
|
302 |
|
|
|
- |
|
|
Total non-performing loans |
|
|
3,658 |
|
|
|
1,464 |
|
|
|
1,701 |
|
|
|
1,443 |
|
|
|
1,712 |
|
|
OREO and repossessed assets |
|
|
147 |
|
|
|
1,044 |
|
|
|
914 |
|
|
|
914 |
|
|
|
1,038 |
|
|
Total non-performing assets |
|
|
3,805 |
|
|
|
2,508 |
|
|
|
2,615 |
|
|
|
2,357 |
|
|
|
2,750 |
|
|
Non-performing loans to total loans |
|
|
0.25 |
% |
|
|
0.10 |
% |
|
|
0.12 |
% |
|
|
0.10 |
% |
|
|
0.12 |
% |
|
Non-performing assets to total assets |
|
|
0.18 |
% |
|
|
0.12 |
% |
|
|
0.13 |
% |
|
|
0.12 |
% |
|
|
0.14 |
% |
|
Non-performing assets to total loans and OREO |
|
|
0.26 |
% |
|
|
0.18 |
% |
|
|
0.19 |
% |
|
|
0.16 |
% |
|
|
0.19 |
% |
|
Annualized net charge-offs (recoveries) to average loans |
|
|
0.01 |
% |
|
|
0.06 |
% |
|
|
(0.01 |
)% |
|
|
0.02 |
% |
|
|
0.01 |
% |
|
Net charge-offs (recoveries) |
|
$ |
43 |
|
|
$ |
224 |
|
|
$ |
(50 |
) |
|
$ |
56 |
|
|
$ |
40 |
|
|
Interest Rates and Yields: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans |
|
|
5.10 |
% |
|
|
5.24 |
% |
|
|
5.48 |
% |
|
|
5.44 |
% |
|
|
5.49 |
% |
|
Securities (1) |
|
|
3.04 |
% |
|
|
3.00 |
% |
|
|
3.14 |
% |
|
|
3.22 |
% |
|
|
3.20 |
% |
|
Total interest-earning assets (1) |
|
|
4.56 |
% |
|
|
4.67 |
% |
|
|
4.95 |
% |
|
|
5.00 |
% |
|
|
5.06 |
% |
|
Deposits |
|
|
1.14 |
% |
|
|
1.27 |
% |
|
|
1.38 |
% |
|
|
1.39 |
% |
|
|
1.31 |
% |
|
Borrowings and repurchase agreements |
|
|
2.77 |
% |
|
|
2.88 |
% |
|
|
4.12 |
% |
|
|
3.09 |
% |
|
|
2.85 |
% |
|
Total interest-bearing liabilities |
|
|
1.43 |
% |
|
|
1.58 |
% |
|
|
1.74 |
% |
|
|
1.75 |
% |
|
|
1.71 |
% |
|
Other Information: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Full-time equivalent employees |
|
288 |
|
|
289 |
|
|
290 |
|
|
290 |
|
|
289 |
|
|||||
_____________________
This information is preliminary and based on CapStar data available at the time of this earnings release.
(1) Net Interest Margin, Securities yields, and Total interest-earning asset yields are calculated on a tax-equivalent basis.
CAPSTAR FINANCIAL HOLDINGS, INC. AND SUBSIDIARY
Analysis of Interest Income and Expense, Rates and Yields (unaudited) (dollars in thousands)
First Quarter 2020 Earnings Release
|
|
|
For the Three Months Ended March 31, |
|
|||||||||||||||||||||
|
|
|
2020 |
|
|
2019 |
|
||||||||||||||||||
|
|
|
Average Outstanding Balance |
|
|
Interest Income/ Expense |
|
|
Average Yield/ Rate |
|
|
Average Outstanding Balance |
|
|
Interest Income/ Expense |
|
|
Average Yield/ Rate |
|
||||||
|
Interest-Earning Assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans (1) |
|
$ |
1,421,256 |
|
|
$ |
18,019 |
|
|
|
5.10 |
% |
|
$ |
1,461,696 |
|
|
$ |
19,787 |
|
|
|
5.49 |
% |
|
Loans held for sale |
|
|
180,401 |
|
|
|
1,719 |
|
|
|
3.83 |
% |
|
|
66,880 |
|
|
|
805 |
|
|
|
4.88 |
% |
|
Securities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Taxable investment securities (2) |
|
|
181,649 |
|
|
|
1,316 |
|
|
|
2.90 |
% |
|
|
195,191 |
|
|
|
1,533 |
|
|
|
3.14 |
% |
|
Investment securities exempt from federal income tax (3) |
|
|
44,888 |
|
|
|
321 |
|
|
|
3.62 |
% |
|
|
56,440 |
|
|
|
377 |
|
|
|
3.38 |
% |
|
Total securities |
|
|
226,537 |
|
|
|
1,637 |
|
|
|
3.04 |
% |
|
|
251,631 |
|
|
|
1,910 |
|
|
|
3.20 |
% |
|
Cash balances in other banks |
|
|
96,004 |
|
|
|
363 |
|
|
|
1.52 |
% |
|
|
66,335 |
|
|
|
446 |
|
|
|
2.73 |
% |
|
Funds sold |
|
|
71 |
|
|
|
— |
|
|
|
2.80 |
% |
|
|
2,079 |
|
|
|
19 |
|
|
|
3.73 |
% |
|
Total interest-earning assets |
|
|
1,924,269 |
|
|
|
21,738 |
|
|
|
4.56 |
% |
|
|
1,848,621 |
|
|
|
22,967 |
|
|
|
5.06 |
% |
|
Noninterest-earning assets |
|
|
135,037 |
|
|
|
|
|
|
|
|
|
|
|
139,857 |
|
|
|
|
|
|
|
|
|
|
Total assets |
|
$ |
2,059,306 |
|
|
|
|
|
|
|
|
|
|
$ |
1,988,478 |
|
|
|
|
|
|
|
|
|
|
Interest-Bearing Liabilities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing deposits: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing transaction accounts |
|
$ |
613,855 |
|
|
|
1,901 |
|
|
|
1.25 |
% |
|
$ |
434,151 |
|
|
|
1,594 |
|
|
|
1.49 |
% |
|
Savings and money market deposits |
|
|
500,117 |
|
|
|
1,551 |
|
|
|
1.25 |
% |
|
|
489,989 |
|
|
|
1,718 |
|
|
|
1.42 |
% |
|
Time deposits |
|
|
297,694 |
|
|
|
1,481 |
|
|
|
2.00 |
% |
|
|
375,065 |
|
|
|
1,813 |
|
|
|
1.96 |
% |
|
Total interest-bearing deposits |
|
|
1,411,666 |
|
|
|
4,933 |
|
|
|
1.41 |
% |
|
|
1,299,205 |
|
|
|
5,125 |
|
|
|
1.60 |
% |
|
Borrowings and repurchase agreements |
|
|
20,989 |
|
|
|
144 |
|
|
|
2.77 |
% |
|
|
119,301 |
|
|
|
840 |
|
|
|
2.85 |
% |
|
Total interest-bearing liabilities |
|
|
1,432,655 |
|
|
|
5,077 |
|
|
|
1.43 |
% |
|
|
1,418,506 |
|
|
|
5,965 |
|
|
|
1.71 |
% |
|
Noninterest-bearing deposits |
|
|
323,969 |
|
|
|
|
|
|
|
|
|
|
|
289,111 |
|
|
|
|
|
|
|
|
|
|
Total funding sources |
|
|
1,756,624 |
|
|
|
|
|
|
|
|
|
|
|
1,707,617 |
|
|
|
|
|
|
|
|
|
|
Noninterest-bearing liabilities |
|
|
24,132 |
|
|
|
|
|
|
|
|
|
|
|
23,756 |
|
|
|
|
|
|
|
|
|
|
Shareholders’ equity |
|
|
278,550 |
|
|
|
|
|
|
|
|
|
|
|
257,105 |
|
|
|
|
|
|
|
|
|
|
Total liabilities and shareholders’ equity |
|
$ |
2,059,306 |
|
|
|
|
|
|
|
|
|
|
$ |
1,988,478 |
|
|
|
|
|
|
|
|
|
|
Net interest spread (4) |
|
|
|
|
|
|
|
|
|
|
3.14 |
% |
|
|
|
|
|
|
|
|
|
|
3.36 |
% |
|
Net interest income/margin (5) |
|
|
|
|
|
$ |
16,661 |
|
|
|
3.50 |
% |
|
|
|
|
|
$ |
17,002 |
|
|
|
3.75 |
% |
|
(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) |
Yields on tax exempt securities, total securities, and total interest-earning assets are shown 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 annualized net interest income calculated on a tax equivalent basis divided by total average interest-earning assets for the period. |
This information is preliminary and based on CapStar data available at the time of this earnings release.
CAPSTAR FINANCIAL HOLDINGS, INC. AND SUBSIDIARY
Non-GAAP Financial Measures (unaudited) (dollars in thousands except share data)
First Quarter 2020 Earnings Release
|
|
|
Three Months Ended |
|
|||||||||||||||||
|
|
|
March 31, 2020 |
|
|
December 31, 2019 |
|
|
September 30, 2019 |
|
|
June 30, 2019 |
|
|
March 31, 2019 |
|
|||||
|
Operating net income: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income |
|
$ |
1,346 |
|
|
$ |
5,421 |
|
|
$ |
6,466 |
|
|
$ |
5,756 |
|
|
$ |
4,780 |
|
|
Add: merger related expenses |
|
|
290 |
|
|
|
163 |
|
|
|
187 |
|
|
|
1,711 |
|
|
|
594 |
|
|
Less: income tax impact of merger related expenses |
|
|
(76 |
) |
|
|
(43 |
) |
|
|
(49 |
) |
|
|
(447 |
) |
|
|
(155 |
) |
|
Operating net income |
|
$ |
1,560 |
|
|
$ |
5,541 |
|
|
$ |
6,604 |
|
|
$ |
7,020 |
|
|
$ |
5,219 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating diluted net income per share of common stock: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating net income |
|
$ |
1,560 |
|
|
$ |
5,541 |
|
|
$ |
6,604 |
|
|
$ |
7,020 |
|
|
$ |
5,219 |
|
|
Weighted average shares - diluted |
|
|
18,443,725 |
|
|
|
18,443,916 |
|
|
|
18,532,479 |
|
|
|
18,650,706 |
|
|
|
18,830,933 |
|
|
Operating diluted net income per share of common stock |
|
$ |
0.08 |
|
|
$ |
0.30 |
|
|
$ |
0.36 |
|
|
$ |
0.38 |
|
|
$ |
0.28 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating annualized return on average assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating net income |
|
$ |
1,560 |
|
|
$ |
5,541 |
|
|
$ |
6,604 |
|
|
$ |
7,020 |
|
|
$ |
5,219 |
|
|
Average assets |
|
$ |
2,059,306 |
|
|
$ |
2,030,231 |
|
|
$ |
2,005,950 |
|
|
$ |
2,004,207 |
|
|
$ |
1,988,478 |
|
|
Operating annualized return on average assets |
|
|
0.30 |
% |
|
|
1.08 |
% |
|
|
1.31 |
% |
|
|
1.40 |
% |
|
|
1.06 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating annualized return on average tangible equity: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average total shareholders' equity |
|
$ |
278,550 |
|
|
$ |
271,568 |
|
|
$ |
266,441 |
|
|
$ |
261,197 |
|
|
$ |
257,105 |
|
|
Less: average intangible assets |
|
|
(44,253 |
) |
|
|
(44,646 |
) |
|
|
(45,050 |
) |
|
|
(45,456 |
) |
|
|
(45,890 |
) |
|
Average tangible equity |
|
|
234,297 |
|
|
|
226,922 |
|
|
|
221,391 |
|
|
|
215,741 |
|
|
|
211,215 |
|
|
Operating net income |
|
$ |
1,560 |
|
|
$ |
5,541 |
|
|
$ |
6,604 |
|
|
$ |
7,020 |
|
|
$ |
5,219 |
|
|
Operating annualized return on average tangible equity |
|
|
2.68 |
% |
|
|
9.69 |
% |
|
|
11.83 |
% |
|
|
13.05 |
% |
|
|
10.02 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating efficiency ratio: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total noninterest expense |
|
$ |
14,211 |
|
|
$ |
15,266 |
|
|
$ |
15,531 |
|
|
$ |
16,470 |
|
|
$ |
14,725 |
|
|
Less: merger related expenses |
|
|
(290 |
) |
|
|
(163 |
) |
|
|
(187 |
) |
|
|
(1,711 |
) |
|
|
(594 |
) |
|
Total operating noninterest expense |
|
|
13,921 |
|
|
|
15,103 |
|
|
|
15,344 |
|
|
|
14,759 |
|
|
|
14,131 |
|
|
Net interest income |
|
|
16,661 |
|
|
|
16,581 |
|
|
|
17,156 |
|
|
|
17,008 |
|
|
|
17,002 |
|
|
Total noninterest income |
|
|
5,874 |
|
|
|
5,719 |
|
|
|
6,788 |
|
|
|
7,032 |
|
|
|
4,735 |
|
|
Total revenues |
|
$ |
22,535 |
|
|
$ |
22,300 |
|
|
$ |
23,944 |
|
|
$ |
24,040 |
|
|
$ |
21,737 |
|
|
Operating efficiency ratio: |
|
|
61.78 |
% |
|
|
67.73 |
% |
|
|
64.08 |
% |
|
|
61.39 |
% |
|
|
65.01 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
March 31, 2020 |
|
|
December 31, 2019 |
|
|
September 30, 2019 |
|
|
June 30, 2019 |
|
|
March 31, 2019 |
|
|||||
|
Tangible Equity: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total shareholders' equity |
|
$ |
275,790 |
|
|
$ |
273,046 |
|
|
$ |
268,082 |
|
|
$ |
262,664 |
|
|
$ |
259,751 |
|
|
Less: intangible assets |
|
|
(44,008 |
) |
|
|
(44,393 |
) |
|
|
(44,790 |
) |
|
|
(45,199 |
) |
|
|
(45,618 |
) |
|
Tangible equity |
|
$ |
231,782 |
|
|
$ |
228,653 |
|
|
$ |
223,292 |
|
|
$ |
217,465 |
|
|
$ |
214,133 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tangible Common Equity: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tangible equity |
|
$ |
231,782 |
|
|
$ |
228,653 |
|
|
$ |
223,292 |
|
|
$ |
217,465 |
|
|
$ |
214,133 |
|
|
Less: preferred equity |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(9,000 |
) |
|
|
(9,000 |
) |
|
Tangible common equity |
|
$ |
231,782 |
|
|
$ |
228,653 |
|
|
$ |
223,292 |
|
|
$ |
208,465 |
|
|
$ |
205,133 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tangible Book Value per Share of Common Stock: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tangible common equity |
|
$ |
231,782 |
|
|
$ |
228,653 |
|
|
$ |
223,292 |
|
|
$ |
208,465 |
|
|
$ |
205,133 |
|
|
Total shares of common stock outstanding |
|
|
18,307,802 |
|
|
|
18,361,922 |
|
|
|
18,343,403 |
|
|
|
17,561,476 |
|
|
|
17,765,124 |
|
|
Tangible book value per share of common stock |
|
$ |
12.66 |
|
|
$ |
12.45 |
|
|
$ |
12.17 |
|
|
$ |
11.87 |
|
|
$ |
11.55 |
|