Attached files
| file | filename |
|---|---|
| EX-99.2 - EX-99.2 - CapStar Financial Holdings, Inc. | cstr-ex992_1038.htm |
| 8-K - 8-K - CapStar Financial Holdings, Inc. | cstr-8k_20210422.htm |
Exhibit 99.1
EARNINGS RELEASE
CONTACT
Denis J. Duncan
Chief Financial Officer
(615) 732-7492
CapStar Financial Holdings, Inc. Reports First Quarter 2021 Results and Increase in Quarterly Dividend
NASHVILLE, TN, April 22, 2021 GlobeNewswire -- CapStar Financial Holdings, Inc. (“CapStar”) (NASDAQ:CSTR) today reported net income of $11.0 million or $0.50 per diluted share, for the quarter ended March 31, 2021, compared with net income of $1.3 million or $0.07 per diluted share, for the quarter ended March 31, 2020. Annualized return on average assets and return on average tangible equity for the quarter ended March 31, 2021 were 1.45% and 14.85%, respectively.
“CapStar began 2021 with outstanding results,” said Timothy K. Schools, president and chief executive officer. “Our performance reflects the beginning of an improving economy and execution of strategic priorities to enhance our profitability and earnings consistency, accelerate organic growth, maintain sound risk management principles, and develop disciplined capital allocation. With continued dedication to exceptional customer service, our hard-working associates are delivering. If current trends continue, we are optimistic that 2021 can be an outstanding year for CapStar. We have more levers than ever before, now serving two dynamic urban markets, three established and stable community markets, and operating several unique specialty businesses.”
“During the quarter, average loans, excluding PPP loans, grew 11.5% annualized; we added Commercial Relationship Managers in both the Knoxville and Nashville metropolitan areas to complement our existing teams; our mortgage, Tri-Net, and SBA businesses showed continued strength; expense discipline led to a record efficiency ratio of 54.08%; and asset quality remained solid with criticized and classified loan levels improving from elevated pandemic levels. Importantly, we ended the quarter with capital ratios approximately 200 bps higher than the industry median and nearly 30% of our assets in cash and investment securities, of which $391 million was in cash. This positions CapStar favorably, allowing us to expand our business, increase our dividend, and announce a substantial share purchase program that enables us to return excess capital to shareholders at the times we believe our stock is our best investment.”
Profitability
|
|
• |
Annualized pre-tax pre-provision income to average assets for the three months ended March 31, 2021 was 1.95% compared to 1.63% for the same period in 2020. |
|
|
• |
Annualized return on average assets for the three months ended March 31, 2021 was 1.45% compared to 0.26% for the same period in 2020. |
|
|
• |
Annualized return on average tangible equity for the three months ended March 31, 2021 was 14.85% compared to 2.31% for the same period in 2020. |
|
|
• |
Net interest margin was 3.13% for the three months ended March 31, 2021 compared to 3.50% for the same period in 2020. The decrease was principally the result of excess liquidity, partially offset by the positive impact of PPP loans. |
|
|
• |
The efficiency ratio for the three months ended March 31, 2021 was 54.08% compared to 63.06% for the same period in 2020. |
|
|
Growth
|
|
• |
Pre-tax pre-provision earnings for the quarter ended March 31, 2021 totaled $14.8 million, compared to $8.3 million for the quarter ended March 31, 2020. The increase was largely attributable to the acquisitions of The Bank of Waynesboro and The First National Bank of Manchester, along with growth in our mortgage business. |
|
|
• |
Average deposits for the quarter ended March 31, 2021 increased $50.5 million or 7.8% annualized compared to December 31, 2020. |
|
|
• |
Average loans, excluding PPP loans, increased $48.0 million or 11.5% annualized for the quarter ended March 31, 2021 compared to December 31, 2020. |
|
|
• |
Tangible book value per share for the quarter ended March 31, 2021 increased to $13.34 compared to $12.66 for the quarter ended March 31, 2020 and declined 2 cents compared to the quarter ended December 31, 2020. |
Soundness
|
|
• |
The total risk-based capital ratio was 16.29% at March 31, 2021 compared to 13.68% at March 31, 2020. |
|
|
• |
The allowance for loan losses to total loans was 1.23% at March 31, 2021 compared to 1.39% at March 31, 2020. The allowance for loan losses plus the fair value mark on acquired loans to total loans, less PPP loans, was 1.59% at March 31, 2021 compared to 1.61% at March 31, 2020. |
|
|
• |
Non-performing assets to total loans and OREO was 0.30% at March 31, 2021 compared to 0.26% at March 31, 2020. |
|
|
• |
Annualized net charge offs to average loans for the three months ended March 31, 2021 was less than 0.01% compared to 0.01% at March 31, 2020. |
Dividend
On April 22, 2021, the board of directors of CapStar approved a quarterly dividend of $0.06 per common share, an increase of 20% from $0.05 in the first quarter 2020, payable on May 26, 2021 to shareholders of record of CapStar’s common stock as of the close of business on May 12, 2021. The increase reflects the Board of Directors’ confidence in CapStar’s near-term and long-term strategy and further underscores its commitment to return value to shareholders.
Conference Call and Webcast Information
CapStar will host a conference call and webcast at 11:00 a.m. Central Time on Friday, April 23, 2021. 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 3558917. 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, 2021, on a consolidated basis, CapStar had total assets of $3.15 billion, total loans of $1.94 billion, total deposits of $2.75 billion, and shareholders’ equity of $343.94 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)
First quarter 2021 Earnings Release
|
|
|
Three Months Ended |
|
|
|||||
|
|
|
March 31, |
|
|
|||||
|
|
|
2021 |
|
|
2020 |
|
|
||
|
Interest income: |
|
|
|
|
|
|
|
|
|
|
Loans, including fees |
|
$ |
22,014 |
|
|
$ |
19,738 |
|
|
|
Securities: |
|
|
|
|
|
|
|
|
|
|
Taxable |
|
|
1,596 |
|
|
|
1,174 |
|
|
|
Tax-exempt |
|
|
373 |
|
|
|
321 |
|
|
|
Federal funds sold |
|
|
— |
|
|
|
— |
|
|
|
Restricted equity securities |
|
|
161 |
|
|
|
142 |
|
|
|
Interest-bearing deposits in financial institutions |
|
|
134 |
|
|
|
363 |
|
|
|
Total interest income |
|
|
24,278 |
|
|
|
21,738 |
|
|
|
Interest expense: |
|
|
|
|
|
|
|
|
|
|
Interest-bearing deposits |
|
|
446 |
|
|
|
1,901 |
|
|
|
Savings and money market accounts |
|
|
313 |
|
|
|
1,551 |
|
|
|
Time deposits |
|
|
931 |
|
|
|
1,481 |
|
|
|
Federal funds purchased |
|
|
— |
|
|
|
— |
|
|
|
Securities sold under agreements to repurchase |
|
|
— |
|
|
|
— |
|
|
|
Federal Home Loan Bank advances |
|
|
12 |
|
|
|
144 |
|
|
|
Subordinated notes |
|
|
394 |
|
|
|
— |
|
|
|
Total interest expense |
|
|
2,096 |
|
|
|
5,077 |
|
|
|
Net interest income |
|
|
22,182 |
|
|
|
16,661 |
|
|
|
Provision for loan losses |
|
|
650 |
|
|
|
7,553 |
|
|
|
Net interest income after provision for loan losses |
|
|
21,532 |
|
|
|
9,108 |
|
|
|
Noninterest income: |
|
|
|
|
|
|
|
|
|
|
Deposit service charges |
|
|
1,102 |
|
|
|
775 |
|
|
|
Interchange and debit card transaction fees |
|
|
1,092 |
|
|
|
724 |
|
|
|
Mortgage banking |
|
|
4,716 |
|
|
|
2,253 |
|
|
|
Tri-Net |
|
|
1,143 |
|
|
|
599 |
|
|
|
Wealth management |
|
|
459 |
|
|
|
407 |
|
|
|
SBA lending |
|
|
492 |
|
|
|
35 |
|
|
|
Net gain on sale of securities |
|
|
26 |
|
|
|
27 |
|
|
|
Other noninterest income |
|
|
984 |
|
|
|
1,054 |
|
|
|
Total noninterest income |
|
|
10,014 |
|
|
|
5,874 |
|
|
|
Noninterest expense: |
|
|
|
|
|
|
|
|
|
|
Salaries and employee benefits |
|
|
9,427 |
|
|
|
8,002 |
|
|
|
Data processing and software |
|
|
2,827 |
|
|
|
1,864 |
|
|
|
Occupancy |
|
|
1,108 |
|
|
|
820 |
|
|
|
Equipment |
|
|
899 |
|
|
|
751 |
|
|
|
Professional services |
|
|
704 |
|
|
|
636 |
|
|
|
Regulatory fees |
|
|
257 |
|
|
|
163 |
|
|
|
Acquisition related expenses |
|
|
67 |
|
|
|
290 |
|
|
|
Amortization of intangibles |
|
|
508 |
|
|
|
386 |
|
|
|
Other operating |
|
|
1,616 |
|
|
|
1,299 |
|
|
|
Total noninterest expense |
|
|
17,413 |
|
|
|
14,211 |
|
|
|
Income before income taxes |
|
|
14,133 |
|
|
|
771 |
|
|
|
Income tax expense |
|
|
3,103 |
|
|
|
(575 |
) |
|
|
Net income |
|
$ |
11,030 |
|
|
$ |
1,346 |
|
|
|
Per share information: |
|
|
|
|
|
|
|
|
|
|
Basic net income per share of common stock |
|
$ |
0.50 |
|
|
$ |
0.07 |
|
|
|
Diluted net income per share of common stock |
|
$ |
0.50 |
|
|
$ |
0.07 |
|
|
|
Weighted average shares outstanding: |
|
|
|
|
|
|
|
|
|
|
Basic |
|
|
22,045,501 |
|
|
|
18,392,913 |
|
|
|
Diluted |
|
|
22,076,600 |
|
|
|
18,443,725 |
|
|
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 2021 Earnings Release
|
|
|
Five Quarter Comparison |
|
|||||||||||||||||
|
|
|
3/31/2021 |
|
|
12/31/2020 |
|
|
9/30/2020 |
|
|
6/30/2020 |
|
|
3/31/2020 |
|
|||||
|
Income Statement Data: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income |
|
$ |
22,182 |
|
|
$ |
22,331 |
|
|
$ |
19,656 |
|
|
$ |
17,675 |
|
|
$ |
16,661 |
|
|
Provision for loan losses |
|
|
650 |
|
|
|
184 |
|
|
|
2,119 |
|
|
|
1,624 |
|
|
|
7,553 |
|
|
Net interest income after provision for loan losses |
|
|
21,532 |
|
|
|
22,147 |
|
|
|
17,537 |
|
|
|
16,051 |
|
|
|
9,108 |
|
|
Deposit service charges |
|
|
1,102 |
|
|
|
964 |
|
|
|
1,064 |
|
|
|
691 |
|
|
|
775 |
|
|
Interchange and debit card transaction fees |
|
|
1,092 |
|
|
|
782 |
|
|
|
936 |
|
|
|
729 |
|
|
|
724 |
|
|
Mortgage banking |
|
|
4,716 |
|
|
|
5,971 |
|
|
|
9,686 |
|
|
|
7,123 |
|
|
|
2,253 |
|
|
Tri-Net |
|
|
1,143 |
|
|
|
1,165 |
|
|
|
668 |
|
|
|
1,260 |
|
|
|
599 |
|
|
Wealth management |
|
|
459 |
|
|
|
411 |
|
|
|
382 |
|
|
|
374 |
|
|
|
407 |
|
|
SBA lending |
|
|
492 |
|
|
|
916 |
|
|
|
476 |
|
|
|
13 |
|
|
|
35 |
|
|
Net gain on sale of securities |
|
|
26 |
|
|
|
51 |
|
|
|
34 |
|
|
|
13 |
|
|
|
27 |
|
|
Other noninterest income |
|
|
984 |
|
|
|
1,488 |
|
|
|
1,558 |
|
|
|
620 |
|
|
|
1,054 |
|
|
Total noninterest income |
|
|
10,014 |
|
|
|
11,748 |
|
|
|
14,804 |
|
|
|
10,823 |
|
|
|
5,874 |
|
|
Salaries and employee benefits |
|
|
9,427 |
|
|
|
11,996 |
|
|
|
12,949 |
|
|
|
12,305 |
|
|
|
8,002 |
|
|
Data processing and software |
|
|
2,827 |
|
|
|
2,548 |
|
|
|
2,353 |
|
|
|
2,100 |
|
|
|
1,864 |
|
|
Occupancy |
|
|
1,108 |
|
|
|
975 |
|
|
|
999 |
|
|
|
797 |
|
|
|
820 |
|
|
Equipment |
|
|
899 |
|
|
|
900 |
|
|
|
864 |
|
|
|
680 |
|
|
|
751 |
|
|
Professional services |
|
|
704 |
|
|
|
370 |
|
|
|
638 |
|
|
|
581 |
|
|
|
636 |
|
|
Regulatory fees |
|
|
257 |
|
|
|
368 |
|
|
|
397 |
|
|
|
333 |
|
|
|
163 |
|
|
Acquisition related expenses |
|
|
67 |
|
|
|
2,105 |
|
|
|
2,548 |
|
|
|
448 |
|
|
|
290 |
|
|
Amortization of intangibles |
|
|
508 |
|
|
|
524 |
|
|
|
539 |
|
|
|
375 |
|
|
|
386 |
|
|
Other operating |
|
|
1,616 |
|
|
|
1,692 |
|
|
|
1,452 |
|
|
|
1,315 |
|
|
|
1,299 |
|
|
Total noninterest expense |
|
|
17,413 |
|
|
|
21,478 |
|
|
|
22,739 |
|
|
|
18,934 |
|
|
|
14,211 |
|
|
Net income before income tax expense |
|
|
14,133 |
|
|
|
12,417 |
|
|
|
9,602 |
|
|
|
7,940 |
|
|
|
771 |
|
|
Income tax expense (benefit) |
|
|
3,103 |
|
|
|
2,736 |
|
|
|
2,115 |
|
|
|
1,759 |
|
|
|
(575 |
) |
|
Net income |
|
$ |
11,030 |
|
|
$ |
9,681 |
|
|
$ |
7,487 |
|
|
$ |
6,181 |
|
|
$ |
1,346 |
|
|
Weighted average shares - basic |
|
|
22,045,501 |
|
|
|
21,960,184 |
|
|
|
21,948,579 |
|
|
|
18,307,083 |
|
|
|
18,392,913 |
|
|
Weighted average shares - diluted |
|
|
22,076,600 |
|
|
|
21,978,925 |
|
|
|
21,960,490 |
|
|
|
18,320,006 |
|
|
|
18,443,725 |
|
|
Net income per share, basic |
|
$ |
0.50 |
|
|
$ |
0.44 |
|
|
$ |
0.34 |
|
|
$ |
0.34 |
|
|
$ |
0.07 |
|
|
Net income per share, diluted |
|
|
0.50 |
|
|
|
0.44 |
|
|
|
0.34 |
|
|
|
0.34 |
|
|
|
0.07 |
|
|
Balance Sheet Data (at period end): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
390,565 |
|
|
$ |
277,439 |
|
|
$ |
455,925 |
|
|
$ |
368,820 |
|
|
$ |
91,450 |
|
|
Securities available-for-sale |
|
|
474,788 |
|
|
|
486,215 |
|
|
|
308,337 |
|
|
|
223,034 |
|
|
|
219,213 |
|
|
Securities held-to-maturity |
|
|
2,401 |
|
|
|
2,407 |
|
|
|
2,413 |
|
|
|
2,699 |
|
|
|
3,306 |
|
|
Loans held for sale |
|
|
162,269 |
|
|
|
179,669 |
|
|
|
198,603 |
|
|
|
129,807 |
|
|
|
186,937 |
|
|
Total loans |
|
|
1,941,078 |
|
|
|
1,891,019 |
|
|
|
1,906,603 |
|
|
|
1,592,725 |
|
|
|
1,446,835 |
|
|
Allowance for loan losses |
|
|
(23,877 |
) |
|
|
(23,245 |
) |
|
|
(23,167 |
) |
|
|
(21,035 |
) |
|
|
(20,114 |
) |
|
Total assets |
|
|
3,150,457 |
|
|
|
2,987,006 |
|
|
|
3,024,348 |
|
|
|
2,445,172 |
|
|
|
2,072,585 |
|
|
Non-interest-bearing deposits |
|
|
711,606 |
|
|
|
662,934 |
|
|
|
716,707 |
|
|
|
546,974 |
|
|
|
442,789 |
|
|
Interest-bearing deposits |
|
|
2,039,595 |
|
|
|
1,905,067 |
|
|
|
1,900,835 |
|
|
|
1,548,592 |
|
|
|
1,320,920 |
|
|
Federal Home Loan Bank advances and other borrowings |
|
|
29,455 |
|
|
|
39,423 |
|
|
|
39,418 |
|
|
|
39,464 |
|
|
|
10,000 |
|
|
Total liabilities |
|
|
2,806,513 |
|
|
|
2,643,520 |
|
|
|
2,690,453 |
|
|
|
2,163,222 |
|
|
|
1,796,795 |
|
|
Shareholders' equity |
|
$ |
343,944 |
|
|
$ |
343,486 |
|
|
$ |
333,895 |
|
|
$ |
281,950 |
|
|
$ |
275,790 |
|
|
Total shares of common stock outstanding |
|
|
22,089,873 |
|
|
|
21,988,803 |
|
|
|
21,947,805 |
|
|
|
18,302,188 |
|
|
|
18,307,802 |
|
|
Book value per share of common stock |
|
$ |
15.57 |
|
|
$ |
15.62 |
|
|
$ |
15.21 |
|
|
$ |
15.41 |
|
|
$ |
15.06 |
|
|
Tangible book value per share of common stock* |
|
|
13.34 |
|
|
|
13.36 |
|
|
|
12.92 |
|
|
|
13.02 |
|
|
|
12.66 |
|
|
Market value per share of common stock |
|
$ |
17.25 |
|
|
$ |
14.75 |
|
|
$ |
9.81 |
|
|
$ |
12.00 |
|
|
$ |
9.89 |
|
|
Capital ratios: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total risk based capital |
|
|
16.29 |
% |
|
|
16.03 |
% |
|
|
15.96 |
% |
|
|
16.76 |
% |
|
|
13.68 |
% |
|
Tier 1 risk based capital |
|
|
13.79 |
% |
|
|
13.52 |
% |
|
|
13.39 |
% |
|
|
13.76 |
% |
|
|
12.56 |
% |
|
Common equity tier 1 capital |
|
|
13.79 |
% |
|
|
13.52 |
% |
|
|
13.39 |
% |
|
|
13.76 |
% |
|
|
12.56 |
% |
|
Leverage |
|
|
9.78 |
% |
|
|
9.60 |
% |
|
|
9.23 |
% |
|
|
10.08 |
% |
|
|
11.23 |
% |
_____________________
*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 2021 Earnings Release
|
|
|
Five Quarter Comparison |
|
|||||||||||||||||
|
|
|
3/31/2021 |
|
|
12/31/2020 |
|
|
9/30/2020 |
|
|
6/30/2020 |
|
|
3/31/2020 |
|
|||||
|
Average Balance Sheet Data: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
341,092 |
|
|
$ |
427,086 |
|
|
$ |
526,409 |
|
|
$ |
257,709 |
|
|
$ |
114,272 |
|
|
Investment securities |
|
|
496,035 |
|
|
|
407,622 |
|
|
|
323,689 |
|
|
|
238,762 |
|
|
|
226,537 |
|
|
Loans held for sale |
|
|
155,677 |
|
|
|
165,441 |
|
|
|
156,123 |
|
|
|
176,193 |
|
|
|
180,401 |
|
|
Loans |
|
|
1,938,532 |
|
|
|
1,891,202 |
|
|
|
1,906,449 |
|
|
|
1,560,626 |
|
|
|
1,421,256 |
|
|
Assets |
|
|
3,078,745 |
|
|
|
3,028,225 |
|
|
|
3,043,847 |
|
|
|
2,350,021 |
|
|
|
2,059,306 |
|
|
Interest bearing deposits |
|
|
1,986,621 |
|
|
|
1,909,692 |
|
|
|
1,957,259 |
|
|
|
1,519,877 |
|
|
|
1,411,666 |
|
|
Deposits |
|
|
2,663,551 |
|
|
|
2,613,080 |
|
|
|
2,648,465 |
|
|
|
2,031,924 |
|
|
|
1,735,635 |
|
|
Federal Home Loan Bank advances and other borrowings |
|
|
33,879 |
|
|
|
39,428 |
|
|
|
39,431 |
|
|
|
10,966 |
|
|
|
20,989 |
|
|
Liabilities |
|
|
2,728,064 |
|
|
|
2,687,516 |
|
|
|
2,722,341 |
|
|
|
2,068,408 |
|
|
|
1,780,756 |
|
|
Shareholders' equity |
|
|
350,681 |
|
|
|
340,709 |
|
|
|
321,506 |
|
|
|
281,614 |
|
|
|
278,550 |
|
|
Performance Ratios: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Annualized return on average assets |
|
|
1.45 |
% |
|
|
1.27 |
% |
|
|
0.98 |
% |
|
|
1.06 |
% |
|
|
0.26 |
% |
|
Annualized return on average equity |
|
|
12.76 |
% |
|
|
11.30 |
% |
|
|
9.26 |
% |
|
|
8.83 |
% |
|
|
1.94 |
% |
|
Net interest margin (1) |
|
|
3.13 |
% |
|
|
3.12 |
% |
|
|
2.72 |
% |
|
|
3.23 |
% |
|
|
3.50 |
% |
|
Annualized noninterest income to average assets |
|
|
1.32 |
% |
|
|
1.54 |
% |
|
|
1.93 |
% |
|
|
1.85 |
% |
|
|
1.15 |
% |
|
Efficiency ratio |
|
|
54.08 |
% |
|
|
63.02 |
% |
|
|
65.99 |
% |
|
|
66.44 |
% |
|
|
63.06 |
% |
|
Loans by Type (at period end): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial and industrial |
|
$ |
619,287 |
|
|
$ |
630,775 |
|
|
$ |
648,018 |
|
|
$ |
621,541 |
|
|
$ |
447,311 |
|
|
Commercial real estate - owner occupied |
|
|
197,758 |
|
|
|
162,603 |
|
|
|
164,336 |
|
|
|
147,682 |
|
|
|
166,652 |
|
|
Commercial real estate - non-owner occupied |
|
|
505,252 |
|
|
|
481,229 |
|
|
|
480,106 |
|
|
|
408,402 |
|
|
|
378,170 |
|
|
Construction and development |
|
|
170,965 |
|
|
|
174,859 |
|
|
|
176,751 |
|
|
|
117,830 |
|
|
|
141,087 |
|
|
Consumer real estate |
|
|
336,496 |
|
|
|
343,791 |
|
|
|
350,238 |
|
|
|
238,696 |
|
|
|
248,243 |
|
|
Consumer |
|
|
45,481 |
|
|
|
44,279 |
|
|
|
42,104 |
|
|
|
27,542 |
|
|
|
27,739 |
|
|
Other |
|
|
65,839 |
|
|
|
53,483 |
|
|
|
45,050 |
|
|
|
31,032 |
|
|
|
37,633 |
|
|
Asset Quality Data: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Allowance for loan losses to total loans |
|
|
1.23 |
% |
|
|
1.23 |
% |
|
|
1.22 |
% |
|
|
1.32 |
% |
|
|
1.39 |
% |
|
Allowance for loan losses to non-performing loans |
|
|
446 |
% |
|
|
483 |
% |
|
|
787 |
% |
|
|
705 |
% |
|
|
550 |
% |
|
Nonaccrual loans |
|
$ |
5,355 |
|
|
$ |
4,817 |
|
|
$ |
2,945 |
|
|
$ |
2,982 |
|
|
$ |
3,658 |
|
|
Troubled debt restructurings |
|
|
1,914 |
|
|
|
1,928 |
|
|
|
1,886 |
|
|
|
1,228 |
|
|
|
1,306 |
|
|
Loans - over 89 days past due and accruing |
|
|
2,720 |
|
|
|
4,367 |
|
|
|
541 |
|
|
|
639 |
|
|
|
399 |
|
|
Total non-performing loans |
|
|
5,355 |
|
|
|
4,817 |
|
|
|
2,945 |
|
|
|
2,982 |
|
|
|
3,658 |
|
|
OREO and repossessed assets |
|
|
523 |
|
|
|
523 |
|
|
|
171 |
|
|
|
147 |
|
|
|
147 |
|
|
Total non-performing assets |
|
|
5,878 |
|
|
|
5,340 |
|
|
|
3,116 |
|
|
|
3,129 |
|
|
|
3,805 |
|
|
Non-performing loans to total loans |
|
|
0.28 |
% |
|
|
0.25 |
% |
|
|
0.15 |
% |
|
|
0.19 |
% |
|
|
0.25 |
% |
|
Non-performing assets to total assets |
|
|
0.19 |
% |
|
|
0.18 |
% |
|
|
0.10 |
% |
|
|
0.13 |
% |
|
|
0.18 |
% |
|
Non-performing assets to total loans and OREO |
|
|
0.30 |
% |
|
|
0.28 |
% |
|
|
0.16 |
% |
|
|
0.20 |
% |
|
|
0.26 |
% |
|
Annualized net charge-offs (recoveries) to average loans |
|
|
0.00 |
% |
|
|
0.02 |
% |
|
|
0.00 |
% |
|
|
0.18 |
% |
|
|
0.01 |
% |
|
Net charge-offs (recoveries) |
|
$ |
18 |
|
|
$ |
106 |
|
|
$ |
(13 |
) |
|
$ |
703 |
|
|
$ |
43 |
|
|
Interest Rates and Yields: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans |
|
|
4.34 |
% |
|
|
4.48 |
% |
|
|
4.47 |
% |
|
|
4.50 |
% |
|
|
5.10 |
% |
|
Securities (1) |
|
|
1.80 |
% |
|
|
1.98 |
% |
|
|
2.18 |
% |
|
|
2.73 |
% |
|
|
3.04 |
% |
|
Total interest-earning assets (1) |
|
|
3.42 |
% |
|
|
3.45 |
% |
|
|
3.41 |
% |
|
|
3.78 |
% |
|
|
4.56 |
% |
|
Deposits |
|
|
0.26 |
% |
|
|
0.30 |
% |
|
|
0.67 |
% |
|
|
0.59 |
% |
|
|
1.14 |
% |
|
Borrowings and repurchase agreements |
|
|
4.85 |
% |
|
|
4.09 |
% |
|
|
5.14 |
% |
|
|
3.16 |
% |
|
|
2.77 |
% |
|
Total interest-bearing liabilities |
|
|
0.42 |
% |
|
|
0.49 |
% |
|
|
0.99 |
% |
|
|
0.81 |
% |
|
|
1.43 |
% |
|
Other Information: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Full-time equivalent employees |
|
|
379 |
|
|
|
380 |
|
|
|
403 |
|
|
|
286 |
|
|
|
288 |
|
_____________________
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 2021 Earnings Release
|
|
|
For the Three Months Ended March 31, |
|
|||||||||||||||||||||
|
|
|
2021 |
|
|
2020 |
|
||||||||||||||||||
|
|
|
Average Outstanding Balance |
|
|
Interest Income/ Expense |
|
|
Average Yield/ Rate |
|
|
Average Outstanding Balance |
|
|
Interest Income/ Expense |
|
|
Average Yield/ Rate |
|
||||||
|
Interest-Earning Assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans (1) |
|
$ |
1,938,532 |
|
|
$ |
20,723 |
|
|
|
4.34 |
% |
|
$ |
1,421,256 |
|
|
$ |
18,019 |
|
|
|
5.10 |
% |
|
Loans held for sale |
|
|
155,677 |
|
|
|
1,291 |
|
|
|
3.36 |
% |
|
|
180,401 |
|
|
|
1,719 |
|
|
|
3.83 |
% |
|
Securities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Taxable investment securities (2) |
|
|
431,406 |
|
|
|
1,757 |
|
|
|
1.63 |
% |
|
|
181,649 |
|
|
|
1,316 |
|
|
|
2.90 |
% |
|
Investment securities exempt from federal income tax (3) |
|
|
64,629 |
|
|
|
373 |
|
|
|
2.92 |
% |
|
|
44,888 |
|
|
|
321 |
|
|
|
3.62 |
% |
|
Total securities |
|
|
496,035 |
|
|
|
2,130 |
|
|
|
1.80 |
% |
|
|
226,537 |
|
|
|
1,637 |
|
|
|
3.04 |
% |
|
Cash balances in other banks |
|
|
298,722 |
|
|
|
134 |
|
|
|
0.18 |
% |
|
|
96,004 |
|
|
|
363 |
|
|
|
1.52 |
% |
|
Funds sold |
|
|
153 |
|
|
|
— |
|
|
|
1.27 |
% |
|
|
71 |
|
|
|
— |
|
|
|
2.80 |
% |
|
Total interest-earning assets |
|
|
2,889,119 |
|
|
|
24,278 |
|
|
|
3.42 |
% |
|
|
1,924,269 |
|
|
|
21,738 |
|
|
|
4.56 |
% |
|
Noninterest-earning assets |
|
|
189,626 |
|
|
|
|
|
|
|
|
|
|
|
135,037 |
|
|
|
|
|
|
|
|
|
|
Total assets |
|
$ |
3,078,745 |
|
|
|
|
|
|
|
|
|
|
$ |
2,059,306 |
|
|
|
|
|
|
|
|
|
|
Interest-Bearing Liabilities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing deposits: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing transaction accounts |
|
$ |
944,651 |
|
|
|
446 |
|
|
|
0.19 |
% |
|
$ |
613,855 |
|
|
|
1,901 |
|
|
|
1.25 |
% |
|
Savings and money market deposits |
|
|
583,590 |
|
|
|
313 |
|
|
|
0.22 |
% |
|
|
500,117 |
|
|
|
1,551 |
|
|
|
1.25 |
% |
|
Time deposits |
|
|
458,380 |
|
|
|
931 |
|
|
|
0.82 |
% |
|
|
297,694 |
|
|
|
1,481 |
|
|
|
2.00 |
% |
|
Total interest-bearing deposits |
|
|
1,986,621 |
|
|
|
1,690 |
|
|
|
0.35 |
% |
|
|
1,411,666 |
|
|
|
4,933 |
|
|
|
1.41 |
% |
|
Borrowings and repurchase agreements |
|
|
33,879 |
|
|
|
406 |
|
|
|
4.85 |
% |
|
|
20,989 |
|
|
|
144 |
|
|
|
2.77 |
% |
|
Total interest-bearing liabilities |
|
|
2,020,500 |
|
|
|
2,096 |
|
|
|
0.42 |
% |
|
|
1,432,655 |
|
|
|
5,077 |
|
|
|
1.43 |
% |
|
Noninterest-bearing deposits |
|
|
676,929 |
|
|
|
|
|
|
|
|
|
|
|
323,969 |
|
|
|
|
|
|
|
|
|
|
Total funding sources |
|
|
2,697,429 |
|
|
|
|
|
|
|
|
|
|
|
1,756,624 |
|
|
|
|
|
|
|
|
|
|
Noninterest-bearing liabilities |
|
|
30,635 |
|
|
|
|
|
|
|
|
|
|
|
24,132 |
|
|
|
|
|
|
|
|
|
|
Shareholders’ equity |
|
|
350,681 |
|
|
|
|
|
|
|
|
|
|
|
278,550 |
|
|
|
|
|
|
|
|
|
|
Total liabilities and shareholders’ equity |
|
$ |
3,078,745 |
|
|
|
|
|
|
|
|
|
|
$ |
2,059,306 |
|
|
|
|
|
|
|
|
|
|
Net interest spread (4) |
|
|
|
|
|
|
|
|
|
|
3.00 |
% |
|
|
|
|
|
|
|
|
|
|
3.14 |
% |
|
Net interest income/margin (5) |
|
|
|
|
|
$ |
22,182 |
|
|
|
3.13 |
% |
|
|
|
|
|
$ |
16,661 |
|
|
|
3.50 |
% |
|
(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 2021 Earnings Release
|
|
|
Five Quarter Comparison |
|
|||||||||||||||||
|
|
|
3/31/2021 |
|
|
12/31/20 |
|
|
9/30/20 |
|
|
6/30/20 |
|
|
3/31/20 |
|
|||||
|
Operating net income: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income |
|
$ |
11,030 |
|
|
$ |
9,681 |
|
|
$ |
7,487 |
|
|
$ |
6,181 |
|
|
$ |
1,346 |
|
|
Add: acquisition related expenses |
|
|
67 |
|
|
|
2,105 |
|
|
|
2,548 |
|
|
|
448 |
|
|
|
290 |
|
|
Less: income tax impact of acquisition related expenses |
|
|
(18 |
) |
|
|
(550 |
) |
|
|
(666 |
) |
|
|
(117 |
) |
|
|
(76 |
) |
|
Operating net income |
|
$ |
11,079 |
|
|
$ |
11,236 |
|
|
$ |
9,369 |
|
|
$ |
6,512 |
|
|
$ |
1,560 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating diluted net income per share of common stock: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating net income |
|
$ |
11,079 |
|
|
$ |
11,236 |
|
|
$ |
9,369 |
|
|
$ |
6,512 |
|
|
$ |
1,560 |
|
|
Weighted average shares - diluted |
|
|
22,076,600 |
|
|
|
21,978,925 |
|
|
|
21,960,490 |
|
|
|
18,320,006 |
|
|
|
18,443,725 |
|
|
Operating diluted net income per share of common stock |
|
$ |
0.50 |
|
|
$ |
0.51 |
|
|
$ |
0.43 |
|
|
$ |
0.36 |
|
|
$ |
0.08 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating annualized return on average assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating net income |
|
$ |
11,079 |
|
|
$ |
11,236 |
|
|
$ |
9,369 |
|
|
$ |
6,512 |
|
|
$ |
1,560 |
|
|
Average assets |
|
|
3,078,745 |
|
|
|
3,028,225 |
|
|
|
3,043,847 |
|
|
|
2,350,021 |
|
|
|
2,059,306 |
|
|
Operating annualized return on average assets |
|
|
1.46 |
% |
|
|
1.48 |
% |
|
|
1.22 |
% |
|
|
1.11 |
% |
|
|
0.30 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating annualized return on average tangible equity: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average total shareholders' equity |
|
$ |
350,681 |
|
|
$ |
340,709 |
|
|
$ |
321,506 |
|
|
$ |
281,614 |
|
|
$ |
278,550 |
|
|
Less: average intangible assets |
|
|
(49,514 |
) |
|
|
(50,038 |
) |
|
|
(50,577 |
) |
|
|
(43,871 |
) |
|
|
(44,253 |
) |
|
Average tangible equity |
|
|
301,167 |
|
|
|
290,671 |
|
|
|
270,929 |
|
|
|
237,743 |
|
|
|
234,297 |
|
|
Operating net income |
|
$ |
11,079 |
|
|
$ |
11,236 |
|
|
$ |
9,369 |
|
|
$ |
6,512 |
|
|
$ |
1,560 |
|
|
Operating annualized return on average tangible equity |
|
|
14.92 |
% |
|
|
15.38 |
% |
|
|
13.76 |
% |
|
|
11.02 |
% |
|
|
2.68 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating efficiency ratio: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total noninterest expense |
|
$ |
17,413 |
|
|
$ |
21,478 |
|
|
$ |
22,739 |
|
|
$ |
18,934 |
|
|
$ |
14,211 |
|
|
Less: acquisition related expenses |
|
|
(67 |
) |
|
|
(2,105 |
) |
|
|
(2,548 |
) |
|
|
(448 |
) |
|
|
(290 |
) |
|
Total operating noninterest expense |
|
|
17,346 |
|
|
|
19,373 |
|
|
|
20,191 |
|
|
|
18,486 |
|
|
|
13,921 |
|
|
Net interest income |
|
|
22,182 |
|
|
|
22,331 |
|
|
|
19,656 |
|
|
|
17,675 |
|
|
|
16,661 |
|
|
Total noninterest income |
|
|
10,014 |
|
|
|
11,748 |
|
|
|
14,804 |
|
|
|
10,823 |
|
|
|
5,874 |
|
|
Total revenues |
|
$ |
32,196 |
|
|
$ |
34,079 |
|
|
$ |
34,460 |
|
|
$ |
28,498 |
|
|
$ |
22,535 |
|
|
Operating efficiency ratio: |
|
|
53.88 |
% |
|
|
56.85 |
% |
|
|
58.59 |
% |
|
|
64.87 |
% |
|
|
61.78 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating annualized pre-tax pre-provision income to average assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income before income taxes |
|
$ |
14,133 |
|
|
$ |
12,417 |
|
|
$ |
9,602 |
|
|
$ |
7,940 |
|
|
$ |
771 |
|
|
Add: acquisition related expenses |
|
|
67 |
|
|
|
2,105 |
|
|
|
2,548 |
|
|
|
448 |
|
|
|
290 |
|
|
Add: provision for loan losses |
|
|
650 |
|
|
|
184 |
|
|
|
2,119 |
|
|
|
1,624 |
|
|
|
7,553 |
|
|
Operating pre-tax pre-provision income |
|
|
14,850 |
|
|
|
14,706 |
|
|
|
14,269 |
|
|
|
10,012 |
|
|
|
8,614 |
|
|
Average assets |
|
$ |
3,078,745 |
|
|
$ |
3,028,225 |
|
|
$ |
3,043,847 |
|
|
$ |
2,350,021 |
|
|
$ |
2,059,306 |
|
|
Operating annualized pre-tax pre-provision income to average assets: |
|
|
1.96 |
% |
|
|
1.93 |
% |
|
|
1.86 |
% |
|
|
1.71 |
% |
|
|
1.68 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
3/31/2021 |
|
|
12/31/20 |
|
|
9/30/20 |
|
|
6/30/20 |
|
|
3/31/20 |
|
|||||
|
Tangible Equity: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total shareholders' equity |
|
$ |
343,944 |
|
|
$ |
343,486 |
|
|
$ |
333,895 |
|
|
$ |
281,950 |
|
|
$ |
275,790 |
|
|
Less: intangible assets |
|
|
(49,190 |
) |
|
|
(49,698 |
) |
|
|
(50,222 |
) |
|
|
(43,633 |
) |
|
|
(44,008 |
) |
|
Tangible equity |
|
$ |
294,754 |
|
|
$ |
293,788 |
|
|
$ |
283,673 |
|
|
$ |
238,317 |
|
|
$ |
231,782 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tangible Book Value per Share of Common Stock: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tangible common equity |
|
$ |
294,754 |
|
|
$ |
293,788 |
|
|
$ |
283,673 |
|
|
$ |
238,317 |
|
|
$ |
231,782 |
|
|
Total shares of common stock outstanding |
|
|
22,089,873 |
|
|
|
21,988,803 |
|
|
|
21,947,805 |
|
|
|
18,302,188 |
|
|
|
18,307,802 |
|
|
Tangible book value per share of common stock |
|
$ |
13.34 |
|
|
$ |
13.36 |
|
|
$ |
12.92 |
|
|
$ |
13.02 |
|
|
$ |
12.66 |
|
CAPSTAR FINANCIAL HOLDINGS, INC. AND SUBSIDIARY
Non-GAAP Financial Measures (unaudited) (dollars in thousands except share data)
First quarter 2021 Earnings Release
|
|
|
Five Quarter Comparison |
|
|||||||||||||||||
|
|
|
3/31/2021 |
|
|
12/31/2020 |
|
|
9/30/2020 |
|
|
6/30/2020 |
|
|
3/31/2020 |
|
|||||
|
Allowance for loan losses |
|
$ |
23,877 |
|
|
$ |
23,245 |
|
|
$ |
23,167 |
|
|
$ |
21,035 |
|
|
$ |
20,114 |
|
|
Purchase accounting marks |
|
|
3,615 |
|
|
|
3,663 |
|
|
|
4,013 |
|
|
|
2,790 |
|
|
|
3,178 |
|
|
Allowance for loan losses and purchase accounting fair value marks |
|
|
27,492 |
|
|
|
26,908 |
|
|
|
27,180 |
|
|
|
23,825 |
|
|
|
23,292 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans |
|
|
1,941,078 |
|
|
|
1,891,019 |
|
|
|
1,906,603 |
|
|
|
1,592,725 |
|
|
|
1,446,835 |
|
|
Less: PPP Loans net of deferred fees |
|
|
210,810 |
|
|
|
181,601 |
|
|
|
216,799 |
|
|
|
213,064 |
|
|
|
— |
|
|
Non-PPP Loans |
|
|
1,730,268 |
|
|
|
1,709,418 |
|
|
|
1,689,804 |
|
|
|
1,379,661 |
|
|
|
1,446,835 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Allowance for loan losses plus fair value marks / Non-PPP Loans |
|
|
1.59 |
% |
|
|
1.57 |
% |
|
|
1.61 |
% |
|
|
1.73 |
% |
|
|
1.61 |
% |