NASHVILLE, Tenn., Jan. 25, 2018 (GLOBE NEWSWIRE) --
CapStar Financial Holdings, Inc. (“CapStar”) (NASDAQ:CSTR) reported unaudited net income of $91,000, or $0.01 per share on a fully diluted basis, for the three months ended December 31, 2017. As a result of the Tax Cuts and Jobs Act of 2017 that was signed into law last month, CapStar revalued its net deferred tax asset position. CapStar currently expects that the revaluation will result in a one-time, non-cash charge of approximately $3.6 million, or $0.27 per share on a fully diluted basis. Reconciliations of non-GAAP measures are provided in the tables that follow. Adjusted net income was $3.7 million, or $0.28 per share on a fully diluted basis for the three months ended December 31, 2017, compared to net income of $2.9 million, or $0.23 per share on a fully diluted basis, for the three months ended December 31, 2016.
“We remain focused on delivering consistent financial results for our shareholders through sound, profitable growth,” said Claire W. Tucker, CapStar’s president and chief executive officer. “The recent addition of a SBA team is intended to augment financial results by expanding market penetration and enhancing fee income.”
Soundness
- The allowance for loan losses represented 1.45% of total loans at December 31, 2017 compared to 1.24% at December 31, 2016.
- Non-performing assets as a percentage of total loans and other real estate owned was 0.28% at December 31, 2017 compared to 0.39% at December 31, 2016.
- Annualized net charge-offs (recoveries) to average loans was 0.15% for the three months ended December 31, 2017 compared to (0.02%) for the same period in 2016.
- The total risk based capital ratio was 12.50% at December 31, 2017 compared to 12.60% at December 31, 2016.
Profitability
- Return on average assets ("ROAA") for the three months ended December 31, 2017 was 0.03% compared to 0.88% for the same period in 2016.
• Adjusting for the impact for tax reform, our adjusted ROAA was 1.09%. - The net interest margin (“NIM”) for the three months ended December 31, 2017 was 3.26% compared to 3.17% for the same period in 2016.
- The efficiency ratio for the three months ended December 31, 2017 was 65.6% compared to 65.8% for the same period in 2016.
Growth
- Average demand deposits for the quarter ended December 31, 2017 increased 29.5%, to $253.6 million, compared to $195.9 million for the same period in 2016.
- Average gross loans for the quarter ended December 31, 2017 increased 1.9%, to $956.4 million, compared to $938.9 million for the same period in 2016.
- Average total assets for the quarter ended December 31, 2017 increased 0.4%, to $1.33 billion, compared to $1.32 billion for the same period in 2016.
“Although 2017 presented some challenges, there are many positives that have us excited about our prospects for 2018,” said Rob Anderson, chief financial officer and chief administrative officer of CapStar. “Banking is a relationship business, and our bankers continue to have success growing core relationships, as over half of our deposit book is now in DDA or NOW checking accounts. In addition, our treasury management and other deposit service charges increased 38% over prior year.”
Conference Call and Webcast Information
CapStar will host a conference call and webcast at 8:30 a.m. Central Time on Friday, January 26, 2018. During the call, management will review the fourth quarter results and operational highlights. Interested parties may listen to the call by dialing (844) 412-1002. The conference ID number is 8989947. A simultaneous webcast may be accessed on CapStar’s website at ir.capstarbank.com by clicking on “News & Events”. An archived version of the webcast will be available in the same location shortly after the live call has ended.
About CapStar Financial Holdings, Inc.
CapStar Financial Holdings, Inc. is a bank holding company headquartered in Nashville, Tennessee, and operates primarily through its wholly owned subsidiary, CapStar Bank, a Tennessee-chartered state bank. CapStar Bank is a commercial bank that seeks to establish and maintain comprehensive relationships with its clients by delivering customized and creative banking solutions and superior client service. As of December 31, 2017, on a consolidated basis, CapStar had total assets of $1.3 billion, gross loans of $947.5 million, total deposits of $1.1 billion, and shareholders’ equity of $146.9 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,” “guidance”, “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 measures that were prepared other than in accordance with generally accepted accounting principles in the United States (“non-GAAP financial measure”): adjusted net income, adjusted diluted net income per share, adjusted return on average assets, adjusted return on average tangible common equity and tangible book value per share. These non-GAAP financial measures (i) provide 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) enable a more complete understanding of factors and trends affecting CapStar’s business, and (iii) allow 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 these non-GAAP financial measures have a number of limitations. As such, you should not view these non-GAAP financial measures as a substitute for results determined in accordance with GAAP, and they are not necessarily comparable to non-GAAP financial measures that other companies use. See below for a reconciliation of these non-GAAP financial measures to the most directly comparable GAAP financial measure.
| CAPSTAR FINANCIAL HOLDINGS, INC. AND SUBSIDIARY | ||||||||||||||||
| Consolidated Statements of Income (unaudited) (dollars in thousands, except share data) | ||||||||||||||||
| Fourth Quarter 2017 Earnings Release | ||||||||||||||||
| Three Months Ended | Year Ended | |||||||||||||||
| December 31, | December 31, | |||||||||||||||
| 2017 | 2016 | 2017 | 2016 | |||||||||||||
| Interest income: | ||||||||||||||||
| Loans, including fees | $ | 11,666 | $ | 10,681 | $ | 45,601 | $ | 40,213 | ||||||||
| Securities: | ||||||||||||||||
| Taxable | 855 | 852 | 3,682 | 3,448 | ||||||||||||
| Tax-exempt | 300 | 317 | 1,244 | 1,158 | ||||||||||||
| Federal funds sold | 15 | 7 | 41 | 19 | ||||||||||||
| Restricted equity securities | 125 | 71 | 396 | 281 | ||||||||||||
| Interest-bearing deposits in financial institutions | 163 | 79 | 551 | 276 | ||||||||||||
| Total interest income | 13,124 | 12,007 | 51,515 | 45,395 | ||||||||||||
| Interest expense: | ||||||||||||||||
| Interest-bearing deposits | 608 | 393 | 2,447 | 1,489 | ||||||||||||
| Savings and money market accounts | 827 | 719 | 3,188 | 2,859 | ||||||||||||
| Time deposits | 694 | 518 | 2,445 | 2,085 | ||||||||||||
| Federal funds purchased | — | 1 | 13 | 22 | ||||||||||||
| Securities sold under agreements to repurchase | — | — | — | 1 | ||||||||||||
| Federal Home Loan Bank advances | 477 | 196 | 1,559 | 475 | ||||||||||||
| Total interest expense | 2,606 | 1,827 | 9,652 | 6,931 | ||||||||||||
| Net interest income | 10,518 | 10,180 | 41,863 | 38,464 | ||||||||||||
| Provision for loan losses | (30 | ) | 70 | 12,870 | 2,829 | |||||||||||
| Net interest income after provision for loan losses | 10,548 | 10,110 | 28,993 | 35,635 | ||||||||||||
| Noninterest income: | ||||||||||||||||
| Treasury management and other deposit service charges | 419 | 303 | 1,516 | 1,108 | ||||||||||||
| Loan commitment fees | 124 | 217 | 771 | 1,118 | ||||||||||||
| Net gain (loss) on sale of securities | (108 | ) | — | (66 | ) | 121 | ||||||||||
| Tri-Net fees | 254 | 125 | 1,002 | 125 | ||||||||||||
| Mortgage banking income | 1,621 | 2,033 | 6,238 | 7,375 | ||||||||||||
| Other noninterest income | 426 | 276 | 1,447 | 1,237 | ||||||||||||
| Total noninterest income | 2,736 | 2,954 | 10,908 | 11,084 | ||||||||||||
| Noninterest expense: | ||||||||||||||||
| Salaries and employee benefits | 5,411 | 5,185 | 20,400 | 20,461 | ||||||||||||
| Data processing and software | 746 | 542 | 2,786 | 2,373 | ||||||||||||
| Professional fees | 473 | 406 | 1,522 | 1,554 | ||||||||||||
| Occupancy | 507 | 366 | 2,025 | 1,498 | ||||||||||||
| Equipment | 467 | 443 | 2,071 | 1,743 | ||||||||||||
| Regulatory fees | 234 | 348 | 1,111 | 1,091 | ||||||||||||
| Other operating | 861 | 1,352 | 3,850 | 4,409 | ||||||||||||
| Total noninterest expense | 8,699 | 8,642 | 33,765 | 33,129 | ||||||||||||
| Income before income taxes | 4,585 | 4,422 | 6,136 | 13,590 | ||||||||||||
| Income tax expense | 4,494 | 1,495 | 4,635 | 4,493 | ||||||||||||
| Net income | $ | 91 | $ | 2,927 | $ | 1,501 | $ | 9,097 | ||||||||
| Per share information: | ||||||||||||||||
| Basic net income per share of common stock | $ | 0.01 | $ | 0.26 | $ | 0.13 | $ | 0.98 | ||||||||
| Diluted net income per share of common stock | $ | 0.01 | $ | 0.23 | $ | 0.12 | $ | 0.81 | ||||||||
| Weighted average shares outstanding: | ||||||||||||||||
| Basic | 11,403,689 | 11,194,534 | 11,280,580 | 9,328,236 | ||||||||||||
| Diluted | 12,938,288 | 12,787,677 | 12,803,511 | 11,212,026 | ||||||||||||
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) | ||||||||||||||||||||
| Fourth Quarter 2017 Earnings Release | ||||||||||||||||||||
| Five Quarter Comparison | ||||||||||||||||||||
| 12/31/17 | 9/30/17 | 6/30/17 | 3/31/17 | 12/31/16 | ||||||||||||||||
| Income Statement Data: | ||||||||||||||||||||
| Net interest income | $ | 10,518 | $ | 10,843 | $ | 10,571 | $ | 9,932 | $ | 10,180 | ||||||||||
| Provision for loan losses | (30 | ) | (195 | ) | 9,690 | 3,405 | 70 | |||||||||||||
| Net interest income after provision for loan losses | 10,548 | 11,038 | 881 | 6,527 | 10,110 | |||||||||||||||
| Treasury management and other deposit service charges | 419 | 427 | 342 | 329 | 303 | |||||||||||||||
| Loan commitment fees | 124 | 223 | 187 | 236 | 217 | |||||||||||||||
| Net gain (loss) on sale of securities | (108 | ) | 9 | 40 | (6 | ) | — | |||||||||||||
| Tri-Net fees | 254 | 367 | 297 | 84 | 125 | |||||||||||||||
| Mortgage banking income | 1,621 | 2,030 | 1,370 | 1,216 | 2,033 | |||||||||||||||
| Other noninterest income | 426 | 316 | 430 | 274 | 276 | |||||||||||||||
| Total noninterest income | 2,736 | 3,372 | 2,666 | 2,133 | 2,954 | |||||||||||||||
| Salaries and employee benefits | 5,411 | 5,119 | 4,784 | 5,086 | 5,185 | |||||||||||||||
| Data processing and software | 746 | 709 | 711 | 621 | 542 | |||||||||||||||
| Professional fees | 473 | 336 | 350 | 365 | 406 | |||||||||||||||
| Occupancy | 507 | 531 | 539 | 449 | 366 | |||||||||||||||
| Equipment | 467 | 564 | 544 | 496 | 443 | |||||||||||||||
| Regulatory fees | 234 | 270 | 301 | 307 | 348 | |||||||||||||||
| Other operating | 861 | 946 | 988 | 1,052 | 1,352 | |||||||||||||||
| Total noninterest expense | 8,699 | 8,475 | 8,217 | 8,376 | 8,642 | |||||||||||||||
| Net income (loss) before income tax expense | 4,585 | 5,935 | (4,670 | ) | 284 | 4,422 | ||||||||||||||
| Income tax (benefit) expense | 4,494 | 1,516 | (1,328 | ) | (47 | ) | 1,495 | |||||||||||||
| Net income (loss) | $ | 91 | $ | 4,419 | $ | (3,342 | ) | $ | 331 | $ | 2,927 | |||||||||
| Weighted average shares - basic | 11,403,689 | 11,279,364 | 11,226,216 | 11,210,948 | 11,194,534 | |||||||||||||||
| Weighted average shares - diluted | 12,938,288 | 12,750,423 | 12,740,104 | 12,784,117 | 12,787,677 | |||||||||||||||
| Net income (loss) per share, basic | $ | 0.01 | $ | 0.39 | $ | (0.30 | ) | $ | 0.03 | $ | 0.26 | |||||||||
| Net income (loss) per share, diluted | 0.01 | 0.35 | (0.26 | ) | 0.03 | 0.23 | ||||||||||||||
| Balance Sheet Data (at period end): | ||||||||||||||||||||
| Cash and cash equivalents | $ | 82,797 | $ | 69,789 | $ | 48,093 | $ | 60,039 | $ | 80,111 | ||||||||||
| Securities available-for-sale | 192,621 | 146,600 | 155,663 | 188,516 | 182,355 | |||||||||||||||
| Securities held-to-maturity | 3,759 | 45,635 | 46,458 | 46,855 | 46,864 | |||||||||||||||
| Loans held for sale | 74,093 | 53,225 | 73,573 | 35,371 | 42,111 | |||||||||||||||
| Total loans | 947,537 | 974,530 | 996,617 | 1,003,434 | 935,251 | |||||||||||||||
| Allowance for loan losses | (13,721 | ) | (14,122 | ) | (12,454 | ) | (13,997 | ) | (11,634 | ) | ||||||||||
| Total assets | 1,344,429 | 1,338,559 | 1,371,626 | 1,381,703 | 1,333,675 | |||||||||||||||
| Non-interest-bearing deposits | 301,742 | 250,007 | 231,169 | 223,450 | 197,788 | |||||||||||||||
| Interest-bearing deposits | 818,124 | 841,488 | 889,816 | 934,545 | 930,935 | |||||||||||||||
| Federal Home Loan Bank advances | 70,000 | 95,000 | 105,000 | 75,000 | 55,000 | |||||||||||||||
| Total liabilities | 1,197,483 | 1,194,355 | 1,233,596 | 1,241,491 | 1,194,468 | |||||||||||||||
| Shareholders' equity | $ | 146,946 | $ | 144,204 | $ | 138,030 | $ | 140,211 | $ | 139,207 | ||||||||||
| Total shares of common stock outstanding | 11,582,026 | 11,346,498 | 11,235,255 | 11,218,328 | 11,204,515 | |||||||||||||||
| Total shares of preferred stock outstanding | 878,049 | 878,049 | 878,049 | 878,049 | 878,049 | |||||||||||||||
| Book value per share of common stock | $ | 11.91 | $ | 11.92 | $ | 11.48 | $ | 11.70 | $ | 11.62 | ||||||||||
| Tangible book value per share of common stock * | 11.37 | 11.36 | 10.93 | 11.14 | 11.06 | |||||||||||||||
| Market value per common share | $ | 20.77 | $ | 19.58 | $ | 17.74 | $ | 19.07 | $ | 21.96 | ||||||||||
| Capital ratios: | ||||||||||||||||||||
| Total risk based capital | 12.50 | % | 12.42 | % | 11.51 | % | 12.13 | % | 12.60 | % | ||||||||||
| Tier 1 risk based capital | 11.39 | % | 11.28 | % | 10.54 | % | 11.01 | % | 11.61 | % | ||||||||||
| Common equity tier 1 capital | 10.68 | % | 10.58 | % | 9.86 | % | 10.32 | % | 10.90 | % | ||||||||||
| Leverage | 10.75 | % | 10.36 | % | 9.77 | % | 10.37 | % | 10.46 | % | ||||||||||
_____________________
*This metric is a non-GAAP financial measure. See below for a reconciliation to the most directly comparable GAAP financial measure.
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) | ||||||||||||||||||||
| Fourth Quarter 2017 Earnings Release | ||||||||||||||||||||
| Five Quarter Comparison | ||||||||||||||||||||
| 12/31/17 | 9/30/17 | 6/30/17 | 3/31/17 | 12/31/16 | ||||||||||||||||
| Average Balance Sheet Data: | ||||||||||||||||||||
| Cash and cash equivalents | $ | 64,850 | $ | 59,352 | $ | 62,002 | $ | 58,925 | $ | 66,758 | ||||||||||
| Investment securities | 202,818 | 207,926 | 227,431 | 237,084 | 226,033 | |||||||||||||||
| Loans held for sale | 66,311 | 67,886 | 34,690 | 28,359 | 52,483 | |||||||||||||||
| Loans | 956,441 | 991,238 | 1,028,968 | 974,350 | 938,887 | |||||||||||||||
| Assets | 1,329,621 | 1,367,993 | 1,393,331 | 1,340,237 | 1,324,620 | |||||||||||||||
| Interest bearing deposits | 827,733 | 857,344 | 882,722 | 933,328 | 942,923 | |||||||||||||||
| Deposits | 1,081,380 | 1,094,500 | 1,111,833 | 1,143,636 | 1,138,779 | |||||||||||||||
| Federal Home Loan Bank advances | 92,554 | 123,315 | 128,901 | 43,837 | 33,478 | |||||||||||||||
| Liabilities | 1,181,954 | 1,226,438 | 1,250,544 | 1,198,686 | 1,185,091 | |||||||||||||||
| Shareholders' equity | $ | 147,667 | $ | 141,556 | $ | 142,787 | $ | 141,551 | $ | 139,529 | ||||||||||
| Performance Ratios: | ||||||||||||||||||||
| Annualized return on average assets | 0.03 | % | 1.28 | % | (0.96 | )% | 0.10 | % | 0.88 | % | ||||||||||
| Annualized return on average equity | 0.25 | % | 12.38 | % | (9.39 | )% | 0.95 | % | 8.35 | % | ||||||||||
| Net interest margin | 3.26 | % | 3.26 | % | 3.15 | % | 3.12 | % | 3.17 | % | ||||||||||
| Annualized Non-interest income to average assets | 0.82 | % | 0.98 | % | 0.77 | % | 0.65 | % | 0.89 | % | ||||||||||
| Efficiency ratio | 65.6 | % | 59.6 | % | 62.1 | % | 69.4 | % | 65.8 | % | ||||||||||
| Loans by Type (at period end): | ||||||||||||||||||||
| Commercial and industrial | $ | 373,248 | $ | 394,600 | $ | 406,636 | $ | 420,825 | $ | 379,620 | ||||||||||
| Commercial real estate - owner occupied | 101,132 | 103,183 | 97,635 | 92,213 | 106,735 | |||||||||||||||
| Commercial real estate - non-owner occupied | 249,490 | 263,595 | 288,123 | 268,742 | 195,587 | |||||||||||||||
| Construction and development | 82,586 | 79,951 | 62,152 | 74,007 | 94,491 | |||||||||||||||
| Consumer real estate | 102,581 | 100,811 | 99,751 | 99,952 | 97,015 | |||||||||||||||
| Consumer | 6,862 | 6,289 | 4,096 | 4,495 | 5,974 | |||||||||||||||
| Other | $ | 31,983 | $ | 26,460 | $ | 38,783 | $ | 43,983 | $ | 56,796 | ||||||||||
| Asset Quality Data: | ||||||||||||||||||||
| Allowance for loan losses to total loans | 1.45 | % | 1.45 | % | 1.25 | % | 1.39 | % | 1.24 | % | ||||||||||
| Allowance for loan losses to non-performing loans | 509 | % | 446 | % | 386 | % | 103 | % | 321 | % | ||||||||||
| Nonaccrual loans | $ | 2,695 | $ | 3,165 | $ | 3,229 | $ | 13,624 | $ | 3,619 | ||||||||||
| Troubled debt restructurings | 1,206 | 1,222 | 1,239 | 1,256 | 1,272 | |||||||||||||||
| Loans - 90 days past due & still accruing | 231 | 27 | 15 | - | - | |||||||||||||||
| Total non-performing loans | 2,695 | 3,165 | 3,229 | 13,624 | 3,619 | |||||||||||||||
| OREO and repossessed assets | - | - | - | - | - | |||||||||||||||
| Total non-performing assets | $ | 2,695 | $ | 3,165 | $ | 3,229 | $ | 13,624 | $ | 3,619 | ||||||||||
| Non-performing loans to total loans | 0.28 | % | 0.32 | % | 0.32 | % | 1.36 | % | 0.39 | % | ||||||||||
| Non-performing assets to total assets | 0.20 | % | 0.24 | % | 0.24 | % | 0.99 | % | 0.27 | % | ||||||||||
| Non-performing assets to total loans and OREO | 0.28 | % | 0.32 | % | 0.32 | % | 1.36 | % | 0.39 | % | ||||||||||
| Annualized net charge-offs (recoveries) to average loans | 0.15 | % | (0.75 | )% | 4.38 | % | 0.43 | % | (0.02 | )% | ||||||||||
| Net charge-offs (recoveries) | $ | 372 | $ | (1,863 | ) | $ | 11,233 | $ | 1,041 | $ | (53 | ) | ||||||||
| Interest Rates and Yields: | ||||||||||||||||||||
| Loans | 4.54 | % | 4.55 | % | 4.29 | % | 4.24 | % | 4.32 | % | ||||||||||
| Securities | 2.53 | % | 2.40 | % | 2.44 | % | 2.37 | % | 2.19 | % | ||||||||||
| Total interest-earning assets | 4.06 | % | 4.07 | % | 3.85 | % | 3.77 | % | 3.74 | % | ||||||||||
| Deposits | 0.78 | % | 0.77 | % | 0.70 | % | 0.67 | % | 0.57 | % | ||||||||||
| Borrowings and repurchase agreements | 2.04 | % | 1.81 | % | 1.18 | % | 1.30 | % | 2.32 | % | ||||||||||
| Total interest-bearing liabilities | 1.12 | % | 1.08 | % | 0.92 | % | 0.85 | % | 0.74 | % | ||||||||||
| Other Information: | ||||||||||||||||||||
| Full-time equivalent employees | 175 | 168 | 169 | 168 | 170 | |||||||||||||||
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) | ||||||||||||||||||||||||
| Fourth Quarter 2017 Earnings Release | ||||||||||||||||||||||||
| For the Three Months Ended December 31, | ||||||||||||||||||||||||
| 2017 | 2016 | |||||||||||||||||||||||
| Average Outstanding Balance | Interest Income/ Expense | Average Yield/ Rate | Average Outstanding Balance | Interest Income/ Expense | Average Yield/ Rate | |||||||||||||||||||
| Interest-Earning Assets | ||||||||||||||||||||||||
| Loans (1) | $ | 956,441 | $ | 10,950 | 4.54 | % | $ | 938,887 | $ | 10,198 | 4.32 | % | ||||||||||||
| Loans held for sale | 66,311 | 716 | 4.28 | % | 52,483 | 483 | 3.66 | % | ||||||||||||||||
| Securities: | ||||||||||||||||||||||||
| Taxable investment securities (2) | 153,955 | 980 | 2.55 | % | 172,771 | 923 | 2.14 | % | ||||||||||||||||
| Investment securities exempt from federal income tax (3) | 48,863 | 300 | 2.46 | % | 53,262 | 317 | 2.38 | % | ||||||||||||||||
| Total securities | 202,818 | 1,280 | 2.53 | % | 226,033 | 1,240 | 2.19 | % | ||||||||||||||||
| Cash balances in other banks | 52,988 | 163 | 1.22 | % | 56,263 | 79 | 0.56 | % | ||||||||||||||||
| Funds sold | 2,989 | 15 | 2.04 | % | 2,449 | 7 | 1.15 | % | ||||||||||||||||
| Total interest-earning assets | 1,281,547 | 13,124 | 4.06 | % | 1,276,115 | 12,007 | 3.74 | % | ||||||||||||||||
| Noninterest-earning assets | 48,074 | 48,505 | ||||||||||||||||||||||
| Total assets | $ | 1,329,621 | $ | 1,324,620 | ||||||||||||||||||||
| Interest-Bearing Liabilities | ||||||||||||||||||||||||
| Interest-bearing deposits: | ||||||||||||||||||||||||
| Interest-bearing transaction accounts | $ | 281,881 | 608 | 0.86 | % | $ | 286,572 | 393 | 0.55 | % | ||||||||||||||
| Savings and money market deposits | 346,639 | 827 | 0.95 | % | 455,201 | 719 | 0.63 | % | ||||||||||||||||
| Time deposits | 199,212 | 694 | 1.38 | % | 201,151 | 518 | 1.03 | % | ||||||||||||||||
| Total interest-bearing deposits | 827,732 | 2,129 | 1.02 | % | 942,924 | 1,630 | 0.69 | % | ||||||||||||||||
| Borrowings and repurchase agreements | 92,554 | 477 | 2.04 | % | 33,694 | 197 | 2.32 | % | ||||||||||||||||
| Total interest-bearing liabilities | 920,286 | 2,606 | 1.12 | % | 976,618 | 1,827 | 0.74 | % | ||||||||||||||||
| Noninterest-bearing deposits | 253,647 | 195,856 | ||||||||||||||||||||||
| Total funding sources | 1,173,934 | 1,172,474 | ||||||||||||||||||||||
| Noninterest-bearing liabilities | 8,020 | 12,617 | ||||||||||||||||||||||
| Shareholders’ equity | 147,667 | 139,529 | ||||||||||||||||||||||
| Total liabilities and shareholders’ equity | $ | 1,329,621 | $ | 1,324,620 | ||||||||||||||||||||
| Net interest spread (4) | 2.94 | % | 3.00 | % | ||||||||||||||||||||
| Net interest income/margin (5) | $ | 10,518 | 3.26 | % | $ | 10,180 | 3.17 | % | ||||||||||||||||
_____________________
(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) | ||||||||||||||||||||||||
| Fourth Quarter 2017 Earnings Release | ||||||||||||||||||||||||
| For the Year Ended December 31, | ||||||||||||||||||||||||
| 2017 | 2016 | |||||||||||||||||||||||
| (Amounts in thousands) | Average Outstanding Balance | Interest Income/ Expense | Average Yield/ Rate | Average Outstanding Balance | Interest Income/ Expense | Average Yield/ Rate | ||||||||||||||||||
| Interest-Earning Assets | ||||||||||||||||||||||||
| Loans (1) | $ | 987,710 | $ | 43,531 | 4.41 | % | $ | 888,541 | $ | 38,450 | 4.33 | % | ||||||||||||
| Loans held for sale | 49,466 | 2,070 | 4.19 | % | 47,303 | 1,763 | 3.73 | % | ||||||||||||||||
| Securities: | ||||||||||||||||||||||||
| Taxable investment securities (2) | 166,561 | 4,078 | 2.45 | % | 176,977 | 3,729 | 2.11 | % | ||||||||||||||||
| Investment securities exempt from federal income tax (3) | 52,130 | 1,244 | 2.39 | % | 47,353 | 1,158 | 2.45 | % | ||||||||||||||||
| Total securities | 218,691 | 5,322 | 2.43 | % | 224,330 | 4,887 | 2.18 | % | ||||||||||||||||
| Cash balances in other banks | 49,990 | 551 | 1.10 | % | 51,147 | 276 | 0.54 | % | ||||||||||||||||
| Funds sold | 2,518 | 41 | 1.63 | % | 2,153 | 19 | 0.89 | % | ||||||||||||||||
| Total interest-earning assets | 1,308,375 | 51,515 | 3.94 | % | 1,213,475 | 45,395 | 3.74 | % | ||||||||||||||||
| Noninterest-earning assets | 49,419 | 49,288 | ||||||||||||||||||||||
| Total assets | $ | 1,357,794 | $ | 1,262,763 | ||||||||||||||||||||
| Interest-Bearing Liabilities | ||||||||||||||||||||||||
| Interest-bearing deposits: | ||||||||||||||||||||||||
| Interest-bearing transaction accounts | $ | 301,411 | 2,447 | 0.81 | % | $ | 269,113 | 1,489 | 0.55 | % | ||||||||||||||
| Savings and money market deposits | 378,640 | 3,188 | 0.84 | % | 445,873 | 2,859 | 0.64 | % | ||||||||||||||||
| Time deposits | 194,892 | 2,445 | 1.25 | % | 193,881 | 2,085 | 1.08 | % | ||||||||||||||||
| Total interest-bearing deposits | 874,943 | 8,080 | 0.92 | % | 908,867 | 6,433 | 0.71 | % | ||||||||||||||||
| Borrowings and repurchase agreements | 98,289 | 1,572 | 1.60 | % | 32,371 | 498 | 1.54 | % | ||||||||||||||||
| Total interest-bearing liabilities | 973,232 | 9,652 | 0.99 | % | 941,238 | 6,931 | 0.74 | % | ||||||||||||||||
| Noninterest-bearing deposits | 232,687 | 189,270 | ||||||||||||||||||||||
| Total funding sources | 1,205,919 | 1,130,507 | ||||||||||||||||||||||
| Noninterest-bearing liabilities | 8,473 | 12,133 | ||||||||||||||||||||||
| Shareholders’ equity | 143,402 | 120,123 | ||||||||||||||||||||||
| Total liabilities and shareholders’ equity | $ | 1,357,794 | $ | 1,262,763 | ||||||||||||||||||||
| Net interest spread (4) | 2.95 | % | 3.00 | % | ||||||||||||||||||||
| Net interest income/margin (5) | $ | 41,863 | 3.20 | % | $ | 38,464 | 3.17 | % | ||||||||||||||||
_____________________
(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) | ||||||||||||||||
| Fourth Quarter 2017 Earnings Release | ||||||||||||||||
| Three Months Ended | Year Ended | |||||||||||||||
| December 31, | December 31, | |||||||||||||||
| 2017 | 2016 | 2017 | 2016 | |||||||||||||
| Average Tangible Equity: | ||||||||||||||||
| Average Total shareholders' equity | $ | 147,667 | $ | 139,529 | $ | 143,402 | $ | 120,123 | ||||||||
| Less: average intangible assets | (6,248 | ) | (6,298 | ) | (6,265 | ) | (6,318 | ) | ||||||||
| Average Tangible equity | $ | 141,419 | $ | 133,231 | $ | 137,137 | $ | 113,805 | ||||||||
| Average Tangible Common Equity: | ||||||||||||||||
| Average tangible equity | $ | 141,419 | $ | 133,231 | $ | 137,137 | $ | 113,805 | ||||||||
| Less: average preferred equity | (9,000 | ) | (9,000 | ) | (9,000 | ) | (14,533 | ) | ||||||||
| Average tangible common equity | $ | 132,419 | $ | 124,231 | $ | 128,137 | $ | 99,272 | ||||||||
| Annualized Return on Average Tangible Common Equity (ROATCE): | ||||||||||||||||
| Average tangible common equity | $ | 132,419 | $ | 124,231 | $ | 128,137 | $ | 99,272 | ||||||||
| Net income | $ | 91 | $ | 2,927 | $ | 1,501 | $ | 9,097 | ||||||||
| Annualized return on average tangible common equity (ROATCE) | 0.27 | % | 9.37 | % | 1.17 | % | 9.16 | % | ||||||||
| 12/31/17 | 12/31/16 | |||||||||||||||
| Tangible Equity: | ||||||||||||||||
| Total shareholders' equity | $ | 146,946 | $ | 139,207 | ||||||||||||
| Less: intangible assets | (6,242 | ) | (6,290 | ) | ||||||||||||
| Tangible equity | $ | 140,704 | $ | 132,917 | ||||||||||||
| Tangible Common Equity: | ||||||||||||||||
| Tangible equity | $ | 140,704 | $ | 132,917 | ||||||||||||
| Less: preferred equity | (9,000 | ) | (9,000 | ) | ||||||||||||
| Tangible common equity | $ | 131,704 | $ | 123,917 | ||||||||||||
| Tangible Book Value per Share of Common Stock: | ||||||||||||||||
| Tangible common equity | $ | 131,704 | $ | 123,917 | ||||||||||||
| Total shares of common stock outstanding | 11,582,026 | 11,204,515 | ||||||||||||||
| Tangible book value per share of common stock | $ | 11.37 | $ | 11.06 | ||||||||||||
| CAPSTAR FINANCIAL HOLDINGS, INC. AND SUBSIDIARY | ||||||||||||||||
| Non-GAAP Financial Measures (unaudited) (dollars in thousands) | ||||||||||||||||
| Fourth Quarter 2017 Earnings Release | ||||||||||||||||
| Three Months Ended | Year Ended | |||||||||||||||
| December 31, | December 31, | |||||||||||||||
| 2017 | 2016 | 2017 | 2016 | |||||||||||||
| Adjusted Net Income: | ||||||||||||||||
| Reported net income | $ | 91 | $ | 2,927 | $ | 1,501 | $ | 9,097 | ||||||||
| Impact of tax reform* | (3,562 | ) | — | (3,562 | ) | — | ||||||||||
| Adjusted net income | $ | 3,653 | $ | 2,927 | $ | 5,063 | $ | 9,097 | ||||||||
| Adjusted Diluted Net Income per Share of Common Stock: | ||||||||||||||||
| Reported diluted net income per share of common stock | $ | 0.01 | $ | 0.23 | $ | 0.12 | $ | 0.81 | ||||||||
| Impact of tax reform* | (0.27 | ) | — | (0.28 | ) | — | ||||||||||
| Adjusted diluted net income per share of common stock | $ | 0.28 | $ | 0.23 | $ | 0.40 | $ | 0.81 | ||||||||
| Adjusted Return on Average Assets (ROAA): | ||||||||||||||||
| Reported ROAA | 0.03 | % | 0.88 | % | 0.11 | % | 0.72 | % | ||||||||
| Impact of tax reform* | (1.06 | )% | — | (0.26 | )% | — | ||||||||||
| Adjusted ROAA | 1.09 | % | 0.88 | % | 0.37 | % | 0.72 | % | ||||||||
_____________________
* As a result of the Tax Cuts and Jobs Act of 2017, which included a Federal corporate tax rate change from 35% to 21%, we revalued our deferred tax assets, which resulted in a $3.6 million increase in income tax expense for 2017. The adjusted non-GAAP amounts and ratios above have excluded the impact of this transaction.