CapStar Financial Holdings, Inc. (“CapStar”)
(NASDAQ:CSTR) today reported net income of $10.3 million
or $0.47 per diluted share, for the quarter ended December 31,
2022, compared with net income of $8.0 million or $0.37 per diluted
share, for the quarter ended September 30, 2022, and net income of
$12.5 million or $0.56 per diluted share, for the quarter ended
December 31, 2021. Annualized return on average assets and return
on average equity for the quarter ended December 31, 2022 were
1.31% and 11.78%, respectively. Fourth quarter results include a
$0.7 million recovery related to an operational loss that occurred
in third quarter 2022.
For the twelve months ended December 31, 2022, the Company
reported net income of $39.0 million or $1.77 per diluted share,
compared with $48.7 million or $2.19 per diluted share, for the
same period of 2021. Year to date 2022 return on average assets and
return on average equity were 1.24% and 10.74%, respectively.
Four Key Drivers |
|
Targets |
|
2022 |
|
4Q22 |
|
3Q22 |
|
4Q21 |
Annualized revenue growth |
|
> 5% |
|
-9.89% |
|
33.30% |
|
-19.51% |
|
-5.61% |
Net interest margin |
|
≥ 3.60% |
|
3.33% |
|
3.44% |
|
3.50% |
|
3.14% |
Efficiency ratio |
|
≤ 55% |
|
57.51% |
|
53.23% |
|
62.21% |
|
54.74% |
Annualized net charge-offs to average loans |
|
≤ 0.25% |
|
0.02% |
|
0.03% |
|
0.02% |
|
0.04% |
Concurrently, the Company announced the hiring of a team of
experienced SBA professionals from top 10 SBA originators to expand
our SBA division and its fee contribution to the bank. Led by newly
appointed director Marc Gilson, an SBA lending professional with
over 25 years experience, the division now includes three business
development officers along with additions to our existing team
totaling 14 dedicated and experienced professionals in processing,
underwriting, approval, loan closing and servicing.
“CapStar’s 2022 performance and results were outstanding,” said
Timothy K. Schools, President and Chief Executive Officer of
CapStar. “Our Company delivered excellent service to our valued
customers across each of our markets, investments in Chattanooga
and Knoxville approached $450 million in loans helping us remix our
earning assets into higher yielding balances through the addition
of numerous new customers, net interest margin expanded due to a
rise in rates as well as an emphasis on disciplined pricing, our
focus on productivity and operating efficiency continues, and our
net charge-offs remain limited. Further, we added a new office in
Asheville and key hires in our existing markets. With the year’s
strong performance and our focus on capital management, we were
pleased to return a record $17.9 million to shareholders in the
form of share repurchases and dividends.”
“It is an exciting time at CapStar and our employees' hard work
was recognized in 2022 by being named the fourteenth highest
performing bank among the nation’s top 300 publicly traded banks by
Bank Director. As we look to 2023, we will continue to deliver
exemplary service and seek to expand existing and new relationships
while remaining actively focused on the challenging deposit
environment and uncertain economic environment. While the outlook
for this year remains clouded with an array of possible outcomes,
we are very excited about our progress and the prospects of our
markets and company.”
Revenue
Total revenue, defined as net interest income plus noninterest
income, was $31.2 million in the fourth quarter of 2022 compared to
the third quarter of 2022 revenue of $28.8 million.
As previously communicated, loans produced in our Tri-Net
division since the spring have proved challenging to achieve a gain
on sale. Additional production was ceased in early July. Third
quarter 2022 revenue was negatively impacted by $2.1 million
related to realized and unrealized losses associated with selling
or transferring to held for investment the remaining Tri-Net loans
in held for sale.
Fourth quarter net interest income declined $0.6 million to
$25.0 million as a result of increased deposit pricing pressure and
a shift into higher cost deposit categories. Noninterest income for
the fourth quarter of 2022 was $6.3 million, an increase of $3.0
million from the previous quarter, or when adjusting for the
Tri-Net impact, an increase of $1.0 million largely due to improved
SBA revenues.
Fourth quarter 2022 average earning assets remained relatively
flat at $2.89 billion compared to the third quarter 2022 as fourth
quarter growth in loans held for investment was principally funded
by a decline in loans held for sale. Average loans held for
investment, excluding Tri-Net loan transfers from held for sale to
held for investments during the third quarter, increased $59.5
million, or 11% linked-quarter annualized. The current commercial
loan pipeline remains strong, exceeding $450 million. The Company
remains conservative maintaining pricing discipline and limiting
commercial real estate lending as a result of an uncertain economic
outlook and in an effort to balance loan demand with funding in a
challenging deposit environment.
For the fourth quarter of 2022, the net interest margin
decreased 6 basis points from the prior quarter to 3.44% primarily
resulting from increased deposit pricing pressure and a shift into
higher cost deposit categories.
The Company's average deposits totaled $2.66 billion in the
fourth quarter of 2022, flat compared to the third quarter of 2022.
During the quarter, the Company experienced a $155.4 million
increase in higher cost average time deposits, primarily a result
of brokered deposit issuances. These increases were partially
offset by a $80.2 million decrease in interest-bearing transaction
accounts, creating an overall net increase of $83.6 million in
average interest-bearing deposits when compared to the third
quarter of 2022. During the quarter, the Company’s
noninterest-bearing deposits decreased 12% from the linked quarter
to 22% of total average deposits as of December 31, 2022. Total
deposit costs increased 58 basis points to 1.20% compared to 0.62%
for the prior quarter.
Noninterest income for the fourth quarter of 2022 was $6.3
million compared to the third quarter of 2022 noninterest income of
$3.3 million, or $5.3 million when adjusted for the previously
discussed Tri-Net losses. The $1.0 million increase versus adjusted
third quarter was largely attributable to a $0.9 million
improvement in the Company’s SBA division driven by the expansion
of the SBA division in the fourth quarter. The Company’s mortgage
and Tri-Net divisions provided little contribution in the fourth
quarter.
Noninterest Expense and Operating
Efficiency
Noninterest expense was $16.6 million for the fourth quarter of
2022, compared to $17.9 million in the third quarter of 2022. Third
quarter expenses included a $1.5 million wire fraud and a $0.7
million operational loss, offset by an $0.8 million voluntary
executive incentive reversal. Fourth quarter expenses included a
$0.7 million recovery of the third quarter operational loss.
Excluding the third quarter wire fraud, operational loss and
incentive reversal, and the fourth quarter operation loss recovery,
adjusted noninterest expense was $17.4 million in the fourth
quarter and $16.5 million for the third quarter. Commissions and
incentives for the SBA division contributed $0.4 million to the
quarter's $0.9 million increase.
The efficiency ratio was 53.23% for the quarter ended December
31, 2022 and 62.21% for the quarter ended September 30, 2022. The
fourth quarter efficiency ratio adjusted for the operational loss
recovery was 55.57%. The third quarter ratio adjusted for the wire
fraud, operational loss, executive incentive reversal, and Tri-Net
losses was 53.44%.
Annualized noninterest expense, adjusted for the wire fraud,
operational loss and recovery and executive incentive reversal, as
a percentage of average assets increased 14 basis points to 2.20%
for the quarter ended December 31, 2022 compared to 2.08% for the
quarter ended September 30, 2022. Assets per employee declined to
$7.9 million as of December 31, 2022 compared to $8.2 million in
the previous quarter.
Asset Quality
The provision for credit losses for fourth quarter totaled $1.5
million, an increase from $0.9 million in third quarter 2022, as a
result of continued strong loan growth and $0.7 million in specific
reserves related to two impaired loans. Net loan charge-offs in
fourth quarter were $172 thousand, or 0.03% of average loans held
for investment, compared with $120 thousand, or 0.02% in third
quarter 2022. For the year 2022, net loan charge-offs totaled $366
thousand or 0.02% of average loans held for investment.
Past due loans improved to $11.6 million or 0.50% of total loans
held for investment at December 31, 2022 compared to $14.4 million
or 0.63% of total loans held for investment at September 30, 2022.
The decrease was primarily related to the renewal of loans that had
matured. Past dues are largely comprised of three relationships
totaling $8.9 million for which the Company believes at this time
there is nominal risk of loss beyond the impairment-related
specific reserve of $0.7 million recorded in the fourth
quarter.
Non-performing assets to total loans and OREO increased to 0.46%
at December 31, 2022 compared to 0.30% at September 30,
2022. The increase in non-performing assets is principally
related to one of the three previously noted past due relationships
that totals $3.4 million but which has a 90% SBA guaranty of $3.0
million.
The allowance for loan losses plus the fair value mark on
acquired loans to total loans increased to 1.13% as of December 31,
2022 compared to 1.09% as of September 30, 2022.
Asset Quality Data: |
|
12/31/22 |
|
9/30/22 |
|
6/30/22 |
|
3/31/22 |
|
12/31/21 |
Annualized net charge-offs to average loans |
|
0.03% |
|
0.02% |
|
0.00% |
|
0.01% |
|
0.04% |
Criticized and classified loans to total loans |
|
1.31% |
|
1.79% |
|
2.12% |
|
2.49% |
|
2.64% |
Loans- past due to total end of period loans |
|
0.50% |
|
0.63% |
|
0.12% |
|
0.17% |
|
0.25% |
Loans- over 90 days past due to total end of period loans |
|
0.44% |
|
0.27% |
|
0.02% |
|
0.05% |
|
0.11% |
Non-performing assets to total loans held for investment and
OREO |
|
0.46% |
|
0.30% |
|
0.11% |
|
0.18% |
|
0.18% |
Allowance for loan losses plus fair value marks / Non-PPP
Loans |
|
1.13% |
|
1.09% |
|
1.09% |
|
1.16% |
|
1.27% |
Allowance for loan losses to non-performing loans |
|
222% |
|
333% |
|
974% |
|
596% |
|
666% |
Income Tax Expense
The Company’s fourth quarter effective income tax rate increased
slightly to 21% when compared to 20% in the prior quarter ended
September 30, 2022. The Company's effective tax rate for 2022 was
approximately 20%.
Capital
The Company continues to be well capitalized with tangible
equity of $308.1 million at December 31, 2022. Tangible book
value per share of common stock for the quarter ended December 31,
2022 was $14.19 compared to $13.72 and $14.99 for the quarters
ended September 30, 2022 and December 31, 2021, respectively, with
the changes being attributable to a decline in the value of the
investment portfolio related to an increase in market interest
rates, partially offset by ongoing earnings. Excluding the
impact of after-tax gain or loss within the available for sale
investment portfolio, tangible book value per share of common stock
for the quarter ended December 31, 2022 was $16.57 compared to
$16.16 and $15.13 for the quarters ended September 30, 2022 and
December 31, 2021, respectively.
Capital ratios: |
|
12/31/22 |
|
9/30/22 |
|
6/30/22 |
|
3/31/22 |
|
12/31/21 |
Total risk based capital |
|
14.51% |
|
14.59% |
|
14.79% |
|
15.60% |
|
16.29% |
Common equity tier 1 capital |
|
12.61% |
|
12.70% |
|
12.87% |
|
13.58% |
|
14.11% |
Leverage |
|
11.40% |
|
11.22% |
|
11.10% |
|
10.99% |
|
10.69% |
As a component of the Company’s capital allocation strategy,
$17.9 million was returned to shareholders in 2022 in the form of
share repurchases and dividends. In total, 523,663 shares were
repurchased at an average price of $19.12 of which 198,610 shares
were repurchased in fourth quarter 2022 for an average price of
$17.39. The Board of Directors of the Company renewed a common
stock share repurchase of up to $10 million on January 18, 2023.
The Plan will terminate on the earlier of the date on which the
maximum authorized dollar amount of shares of common stock has been
repurchased or January 31, 2024.
Dividend
On January 18, 2023, the Board of Directors of the Company
approved a quarterly dividend of $0.10 per common share payable on
February 22, 2023 to shareholders of record of CapStar’s common
stock as of the close of business on February 8, 2023.
Conference Call and Webcast Information
CapStar will host a conference call and webcast at 10:30 a.m.
Central Time on Friday, January 20, 2023. During the call,
management will review the fourth quarter results and operational
highlights. Interested parties may listen to the call by
registering here to access the live call, including for
participants who plan to ask a question during the call. 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, 2022, on
a consolidated basis, CapStar had total assets of $3.1 billion,
total loans of $2.3 billion, total deposits of $2.7 billion, and
shareholders’ equity of $354.2 million. Visit www.capstarbank.com
for more information.
NON-GAAP MEASURES
Certain releases may include financial information determined by
methods other than in accordance with generally accepted accounting
principles (“GAAP”). This financial information may include certain
operating performance measures, which exclude merger-related and
other charges that are not considered part of recurring operations.
Such measures may 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”, "Tangible
common equity to tangible assets" or other measures.
Management may include 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
SUBSIDIARYConsolidated Statements of Income
(unaudited) (dollars in thousands, except share
data)Fourth quarter 2022 Earnings
Release
|
|
Three Months Ended |
|
|
Year Ended |
|
|
|
December 31, |
|
|
December 31, |
|
|
|
2022 |
|
|
2021 |
|
|
2022 |
|
|
2021 |
|
Interest income: |
|
|
|
|
|
|
|
|
|
|
|
|
Loans, including fees |
|
$ |
30,024 |
|
|
$ |
22,284 |
|
|
$ |
101,501 |
|
|
$ |
89,219 |
|
Securities: |
|
|
|
|
|
|
|
|
|
|
|
|
Taxable |
|
|
2,000 |
|
|
|
1,682 |
|
|
|
7,642 |
|
|
|
6,573 |
|
Tax-exempt |
|
|
310 |
|
|
|
335 |
|
|
|
1,268 |
|
|
|
1,408 |
|
Federal funds sold |
|
|
45 |
|
|
|
9 |
|
|
|
76 |
|
|
|
21 |
|
Restricted equity securities |
|
|
240 |
|
|
|
157 |
|
|
|
784 |
|
|
|
640 |
|
Interest-bearing deposits in financial institutions |
|
|
1,187 |
|
|
|
192 |
|
|
|
2,262 |
|
|
|
598 |
|
Total interest income |
|
|
33,806 |
|
|
|
24,659 |
|
|
|
113,533 |
|
|
|
98,459 |
|
Interest expense: |
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing deposits |
|
|
2,200 |
|
|
|
410 |
|
|
|
4,479 |
|
|
|
1,626 |
|
Savings and money market accounts |
|
|
2,701 |
|
|
|
307 |
|
|
|
5,102 |
|
|
|
1,203 |
|
Time deposits |
|
|
3,151 |
|
|
|
556 |
|
|
|
5,421 |
|
|
|
2,873 |
|
Federal funds purchased |
|
|
— |
|
|
|
— |
|
|
|
2 |
|
|
|
— |
|
Federal Home Loan Bank advances |
|
|
401 |
|
|
|
— |
|
|
|
862 |
|
|
|
12 |
|
Subordinated notes |
|
|
394 |
|
|
|
394 |
|
|
|
1,575 |
|
|
|
1,575 |
|
Total interest expense |
|
|
8,847 |
|
|
|
1,667 |
|
|
|
17,441 |
|
|
|
7,289 |
|
Net interest income |
|
|
24,959 |
|
|
|
22,992 |
|
|
|
96,092 |
|
|
|
91,170 |
|
Provision for loan losses |
|
|
1,548 |
|
|
|
(651 |
) |
|
|
2,474 |
|
|
|
(1,066 |
) |
Net interest income after provision for loan losses |
|
|
23,411 |
|
|
|
23,643 |
|
|
|
93,618 |
|
|
|
92,236 |
|
Noninterest income: |
|
|
|
|
|
|
|
|
|
|
|
|
Deposit service charges |
|
|
1,206 |
|
|
|
1,117 |
|
|
|
4,781 |
|
|
|
4,515 |
|
Interchange and debit card transaction fees |
|
|
1,250 |
|
|
|
1,261 |
|
|
|
5,053 |
|
|
|
4,816 |
|
Mortgage banking income |
|
|
637 |
|
|
|
2,740 |
|
|
|
5,073 |
|
|
|
16,058 |
|
Tri-Net |
|
|
39 |
|
|
|
3,996 |
|
|
|
78 |
|
|
|
8,613 |
|
Wealth management |
|
|
403 |
|
|
|
438 |
|
|
|
1,687 |
|
|
|
1,850 |
|
SBA lending |
|
|
1,446 |
|
|
|
279 |
|
|
|
2,501 |
|
|
|
2,060 |
|
Net gain on sale of securities |
|
|
1 |
|
|
|
8 |
|
|
|
8 |
|
|
|
28 |
|
Other noninterest income |
|
|
1,303 |
|
|
|
1,295 |
|
|
|
5,341 |
|
|
|
4,741 |
|
Total noninterest income |
|
|
6,285 |
|
|
|
11,134 |
|
|
|
24,522 |
|
|
|
42,681 |
|
Noninterest expense: |
|
|
|
|
|
|
|
|
|
|
|
|
Salaries and employee benefits |
|
|
9,875 |
|
|
|
10,549 |
|
|
|
38,065 |
|
|
|
41,758 |
|
Data processing and software |
|
|
2,797 |
|
|
|
2,719 |
|
|
|
11,152 |
|
|
|
11,248 |
|
Occupancy |
|
|
1,032 |
|
|
|
1,012 |
|
|
|
4,299 |
|
|
|
4,205 |
|
Equipment |
|
|
753 |
|
|
|
867 |
|
|
|
2,988 |
|
|
|
3,507 |
|
Professional services |
|
|
522 |
|
|
|
521 |
|
|
|
2,175 |
|
|
|
2,155 |
|
Regulatory fees |
|
|
266 |
|
|
|
284 |
|
|
|
1,080 |
|
|
|
1,031 |
|
Acquisition related expenses |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
323 |
|
Amortization of intangibles |
|
|
399 |
|
|
|
461 |
|
|
|
1,690 |
|
|
|
1,939 |
|
Other noninterest expense |
|
|
984 |
|
|
|
2,269 |
|
|
|
7,921 |
|
|
|
7,375 |
|
Total noninterest expense |
|
|
16,628 |
|
|
|
18,682 |
|
|
|
69,370 |
|
|
|
73,541 |
|
Income before income taxes |
|
|
13,068 |
|
|
|
16,095 |
|
|
|
48,770 |
|
|
|
61,376 |
|
Income tax expense |
|
|
2,735 |
|
|
|
3,625 |
|
|
|
9,753 |
|
|
|
12,699 |
|
Net income |
|
$ |
10,333 |
|
|
$ |
12,470 |
|
|
$ |
39,017 |
|
|
$ |
48,677 |
|
Per share information: |
|
|
|
|
|
|
|
|
|
|
|
|
Basic net income per share of common stock |
|
$ |
0.47 |
|
|
$ |
0.56 |
|
|
$ |
1.77 |
|
|
$ |
2.20 |
|
Diluted net income per share of common stock |
|
$ |
0.47 |
|
|
$ |
0.56 |
|
|
$ |
1.77 |
|
|
$ |
2.19 |
|
Weighted average shares outstanding: |
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
|
21,887,351 |
|
|
|
22,166,410 |
|
|
|
22,010,462 |
|
|
|
22,127,919 |
|
Diluted |
|
|
21,926,821 |
|
|
|
22,221,989 |
|
|
|
22,059,855 |
|
|
|
22,179,461 |
|
This information is preliminary and based on CapStar data
available at the time of this earnings release.
CAPSTAR FINANCIAL HOLDINGS, INC. AND
SUBSIDIARYSelected Quarterly Financial Data
(unaudited) (dollars in thousands, except share
data)Fourth quarter 2022 Earnings
Release
|
|
Five Quarter Comparison |
|
|
|
12/31/2022 |
|
|
9/30/2022 |
|
|
6/30/2022 |
|
|
3/31/2022 |
|
|
12/31/2021 |
|
Income Statement
Data: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income |
|
$ |
24,959 |
|
|
$ |
25,553 |
|
|
$ |
24,440 |
|
|
$ |
21,140 |
|
|
$ |
22,992 |
|
Provision for loan losses |
|
|
1,548 |
|
|
|
867 |
|
|
|
843 |
|
|
|
(784 |
) |
|
|
(651 |
) |
Net interest income after provision for loan losses |
|
|
23,411 |
|
|
|
24,686 |
|
|
|
23,597 |
|
|
|
21,924 |
|
|
|
23,643 |
|
Deposit service charges |
|
|
1,206 |
|
|
|
1,251 |
|
|
|
1,182 |
|
|
|
1,142 |
|
|
|
1,117 |
|
Interchange and debit card transaction fees |
|
|
1,250 |
|
|
|
1,245 |
|
|
|
1,336 |
|
|
|
1,222 |
|
|
|
1,261 |
|
Mortgage banking |
|
|
637 |
|
|
|
765 |
|
|
|
1,705 |
|
|
|
1,966 |
|
|
|
2,740 |
|
Tri-Net |
|
|
39 |
|
|
|
(2,059 |
) |
|
|
(73 |
) |
|
|
2,171 |
|
|
|
3,996 |
|
Wealth management |
|
|
403 |
|
|
|
385 |
|
|
|
459 |
|
|
|
440 |
|
|
|
438 |
|
SBA lending |
|
|
1,446 |
|
|
|
560 |
|
|
|
273 |
|
|
|
222 |
|
|
|
279 |
|
Net gain (loss) on sale of securities |
|
|
1 |
|
|
|
7 |
|
|
|
— |
|
|
|
— |
|
|
|
8 |
|
Other noninterest income |
|
|
1,303 |
|
|
|
1,118 |
|
|
|
994 |
|
|
|
1,926 |
|
|
|
1,295 |
|
Total noninterest income |
|
|
6,285 |
|
|
|
3,272 |
|
|
|
5,876 |
|
|
|
9,089 |
|
|
|
11,134 |
|
Salaries and employee benefits |
|
|
9,875 |
|
|
|
8,712 |
|
|
|
9,209 |
|
|
|
10,269 |
|
|
|
10,549 |
|
Data processing and software |
|
|
2,797 |
|
|
|
2,861 |
|
|
|
2,847 |
|
|
|
2,647 |
|
|
|
2,719 |
|
Occupancy |
|
|
1,032 |
|
|
|
1,092 |
|
|
|
1,076 |
|
|
|
1,099 |
|
|
|
1,012 |
|
Equipment |
|
|
753 |
|
|
|
743 |
|
|
|
783 |
|
|
|
709 |
|
|
|
867 |
|
Professional services |
|
|
522 |
|
|
|
468 |
|
|
|
506 |
|
|
|
679 |
|
|
|
521 |
|
Regulatory fees |
|
|
266 |
|
|
|
269 |
|
|
|
265 |
|
|
|
280 |
|
|
|
284 |
|
Acquisition related expenses |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Amortization of intangibles |
|
|
399 |
|
|
|
415 |
|
|
|
430 |
|
|
|
446 |
|
|
|
461 |
|
Other noninterest expense |
|
|
984 |
|
|
|
3,371 |
|
|
|
1,959 |
|
|
|
1,607 |
|
|
|
2,269 |
|
Total noninterest expense |
|
|
16,628 |
|
|
|
17,931 |
|
|
|
17,075 |
|
|
|
17,736 |
|
|
|
18,682 |
|
Net income before income tax expense |
|
|
13,068 |
|
|
|
10,027 |
|
|
|
12,398 |
|
|
|
13,277 |
|
|
|
16,095 |
|
Income tax expense |
|
|
2,735 |
|
|
|
1,988 |
|
|
|
2,426 |
|
|
|
2,604 |
|
|
|
3,625 |
|
Net income |
|
$ |
10,333 |
|
|
$ |
8,039 |
|
|
$ |
9,972 |
|
|
$ |
10,673 |
|
|
$ |
12,470 |
|
Weighted average shares - basic |
|
|
21,887,351 |
|
|
|
21,938,259 |
|
|
|
22,022,109 |
|
|
|
22,198,339 |
|
|
|
22,166,410 |
|
Weighted average shares - diluted |
|
|
21,926,821 |
|
|
|
21,988,085 |
|
|
|
22,074,260 |
|
|
|
22,254,644 |
|
|
|
22,221,989 |
|
Net income per share, basic |
|
$ |
0.47 |
|
|
$ |
0.37 |
|
|
$ |
0.45 |
|
|
$ |
0.48 |
|
|
$ |
0.56 |
|
Net income per share, diluted |
|
|
0.47 |
|
|
|
0.37 |
|
|
|
0.45 |
|
|
|
0.48 |
|
|
|
0.56 |
|
Balance Sheet Data (at
period end): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
135,305 |
|
|
$ |
199,913 |
|
|
$ |
113,825 |
|
|
$ |
355,981 |
|
|
$ |
415,125 |
|
Securities available-for-sale |
|
|
396,416 |
|
|
|
401,345 |
|
|
|
437,420 |
|
|
|
460,558 |
|
|
|
459,396 |
|
Securities held-to-maturity |
|
|
1,240 |
|
|
|
1,762 |
|
|
|
1,769 |
|
|
|
1,775 |
|
|
|
1,782 |
|
Loans held for sale |
|
|
44,708 |
|
|
|
43,122 |
|
|
|
85,884 |
|
|
|
106,895 |
|
|
|
83,715 |
|
Loans held for investment |
|
|
2,312,798 |
|
|
|
2,290,269 |
|
|
|
2,234,833 |
|
|
|
2,047,555 |
|
|
|
1,965,769 |
|
Allowance for loan losses |
|
|
(23,806 |
) |
|
|
(22,431 |
) |
|
|
(21,684 |
) |
|
|
(20,857 |
) |
|
|
(21,698 |
) |
Total assets |
|
|
3,117,169 |
|
|
|
3,165,706 |
|
|
|
3,096,537 |
|
|
|
3,190,749 |
|
|
|
3,133,046 |
|
Non-interest-bearing deposits |
|
|
512,076 |
|
|
|
628,846 |
|
|
|
717,167 |
|
|
|
702,172 |
|
|
|
725,171 |
|
Interest-bearing deposits |
|
|
2,167,743 |
|
|
|
2,004,827 |
|
|
|
1,913,320 |
|
|
|
2,053,823 |
|
|
|
1,959,110 |
|
Federal Home Loan Bank advances and borrowings |
|
|
44,666 |
|
|
|
149,633 |
|
|
|
74,599 |
|
|
|
29,566 |
|
|
|
29,532 |
|
Total liabilities |
|
|
2,762,987 |
|
|
|
2,818,341 |
|
|
|
2,738,802 |
|
|
|
2,821,832 |
|
|
|
2,752,952 |
|
Shareholders' equity |
|
$ |
354,182 |
|
|
$ |
347,365 |
|
|
$ |
357,735 |
|
|
$ |
368,917 |
|
|
$ |
380,094 |
|
Total shares of common stock outstanding |
|
|
21,714,380 |
|
|
|
21,931,624 |
|
|
|
21,934,554 |
|
|
|
22,195,071 |
|
|
|
22,166,129 |
|
Book value per share of common stock |
|
$ |
16.31 |
|
|
$ |
15.84 |
|
|
$ |
16.31 |
|
|
$ |
16.62 |
|
|
$ |
17.15 |
|
Tangible book value per share of common stock * |
|
|
14.19 |
|
|
|
13.72 |
|
|
|
14.17 |
|
|
|
14.49 |
|
|
|
14.99 |
|
Tangible book value per share of common stock plus after-tax
unrealized available for sale investment losses* |
|
|
16.57 |
|
|
|
16.16 |
|
|
|
15.86 |
|
|
|
15.53 |
|
|
|
15.13 |
|
Market value per common share |
|
|
17.66 |
|
|
|
18.53 |
|
|
|
19.62 |
|
|
|
21.08 |
|
|
|
21.03 |
|
Capital
ratios: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total risk based capital |
|
|
14.51 |
% |
|
|
14.59 |
% |
|
|
14.79 |
% |
|
|
15.60 |
% |
|
|
16.29 |
% |
Tangible common equity to tangible assets* |
|
|
10.03 |
% |
|
|
9.65 |
% |
|
|
10.19 |
% |
|
|
10.23 |
% |
|
|
10.77 |
% |
Tangible common equity to tangible assets less after-tax unrealized
available for sale investment (gains) losses* |
|
|
11.52 |
% |
|
|
11.17 |
% |
|
|
11.27 |
% |
|
|
10.88 |
% |
|
|
10.86 |
% |
Common equity tier 1 capital |
|
|
12.61 |
% |
|
|
12.70 |
% |
|
|
12.87 |
% |
|
|
13.58 |
% |
|
|
14.11 |
% |
Leverage |
|
|
11.40 |
% |
|
|
11.22 |
% |
|
|
11.10 |
% |
|
|
10.99 |
% |
|
|
10.69 |
% |
_____________________*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
SUBSIDIARYSelected Quarterly Financial Data
(unaudited) (dollars in thousands, except share
data)Fourth quarter 2022 Earnings
Release
|
|
Five Quarter Comparison |
|
|
|
12/31/2022 |
|
|
9/30/2022 |
|
|
6/30/2022 |
|
|
3/31/2022 |
|
|
12/31/2021 |
|
Average Balance Sheet
Data: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
154,150 |
|
|
$ |
154,543 |
|
|
$ |
189,542 |
|
|
$ |
380,262 |
|
|
$ |
470,963 |
|
Investment securities |
|
|
415,414 |
|
|
|
450,933 |
|
|
|
473,167 |
|
|
|
483,339 |
|
|
|
491,135 |
|
Loans held for sale |
|
|
37,945 |
|
|
|
94,811 |
|
|
|
114,223 |
|
|
|
90,163 |
|
|
|
123,962 |
|
Loans held for investment |
|
|
2,309,349 |
|
|
|
2,241,355 |
|
|
|
2,147,750 |
|
|
|
2,001,740 |
|
|
|
1,888,094 |
|
Assets |
|
|
3,124,928 |
|
|
|
3,146,841 |
|
|
|
3,128,864 |
|
|
|
3,153,320 |
|
|
|
3,159,308 |
|
Interest-bearing deposits |
|
|
2,076,743 |
|
|
|
1,993,172 |
|
|
|
1,936,910 |
|
|
|
1,976,803 |
|
|
|
1,964,641 |
|
Deposits |
|
|
2,662,954 |
|
|
|
2,659,268 |
|
|
|
2,664,614 |
|
|
|
2,704,938 |
|
|
|
2,713,314 |
|
Federal Home Loan Bank advances and other borrowings |
|
|
74,812 |
|
|
|
88,584 |
|
|
|
70,516 |
|
|
|
29,547 |
|
|
|
29,514 |
|
Liabilities |
|
|
2,776,902 |
|
|
|
2,782,703 |
|
|
|
2,767,714 |
|
|
|
2,773,281 |
|
|
|
2,781,951 |
|
Shareholders' equity |
|
$ |
348,027 |
|
|
$ |
364,138 |
|
|
$ |
361,150 |
|
|
$ |
380,039 |
|
|
$ |
377,357 |
|
Performance
Ratios: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Annualized return on average assets |
|
|
1.31 |
% |
|
|
1.01 |
% |
|
|
1.28 |
% |
|
|
1.37 |
% |
|
|
1.57 |
% |
Annualized return on average equity |
|
|
11.78 |
% |
|
|
8.76 |
% |
|
|
11.08 |
% |
|
|
11.39 |
% |
|
|
13.11 |
% |
Net interest margin (1) |
|
|
3.44 |
% |
|
|
3.50 |
% |
|
|
3.41 |
% |
|
|
2.97 |
% |
|
|
3.14 |
% |
Annualized noninterest income to average assets |
|
|
0.80 |
% |
|
|
0.41 |
% |
|
|
0.75 |
% |
|
|
1.17 |
% |
|
|
1.40 |
% |
Efficiency ratio |
|
|
53.23 |
% |
|
|
62.21 |
% |
|
|
56.32 |
% |
|
|
58.67 |
% |
|
|
54.74 |
% |
Loans by Type (at
period end): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial and industrial |
|
$ |
496,347 |
|
|
$ |
499,048 |
|
|
$ |
510,987 |
|
|
$ |
499,719 |
|
|
$ |
497,615 |
|
Commercial real estate - owner occupied |
|
|
246,109 |
|
|
|
235,519 |
|
|
|
241,461 |
|
|
|
231,933 |
|
|
|
209,261 |
|
Commercial real estate - non-owner occupied |
|
|
803,611 |
|
|
|
832,156 |
|
|
|
786,610 |
|
|
|
652,936 |
|
|
|
616,023 |
|
Construction and development |
|
|
229,972 |
|
|
|
198,869 |
|
|
|
205,573 |
|
|
|
208,513 |
|
|
|
214,310 |
|
Consumer real estate |
|
|
402,615 |
|
|
|
386,628 |
|
|
|
357,849 |
|
|
|
327,416 |
|
|
|
326,412 |
|
Consumer |
|
|
53,382 |
|
|
|
52,715 |
|
|
|
53,227 |
|
|
|
48,790 |
|
|
|
46,811 |
|
Other |
|
|
80,762 |
|
|
|
85,334 |
|
|
|
79,126 |
|
|
|
78,248 |
|
|
|
55,337 |
|
Asset Quality
Data: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Allowance for loan losses to total loans |
|
|
1.03 |
% |
|
|
0.98 |
% |
|
|
0.97 |
% |
|
|
1.02 |
% |
|
|
1.10 |
% |
Allowance for loan losses to non-performing loans |
|
|
222 |
% |
|
|
333 |
% |
|
|
974 |
% |
|
|
596 |
% |
|
|
666 |
% |
Nonaccrual loans |
|
|
10,714 |
|
|
|
6,734 |
|
|
|
2,225 |
|
|
|
3,502 |
|
|
|
3,258 |
|
Troubled debt restructurings |
|
|
344 |
|
|
|
344 |
|
|
|
86 |
|
|
|
1,847 |
|
|
|
1,832 |
|
Loans - over 90 days past due |
|
|
10,222 |
|
|
|
6,096 |
|
|
|
494 |
|
|
|
1,076 |
|
|
|
2,120 |
|
Total non-performing loans |
|
|
10,714 |
|
|
|
6,734 |
|
|
|
2,225 |
|
|
|
3,502 |
|
|
|
3,258 |
|
OREO and repossessed assets |
|
|
- |
|
|
|
165 |
|
|
|
165 |
|
|
|
178 |
|
|
|
266 |
|
Total non-performing assets |
|
$ |
10,714 |
|
|
$ |
6,899 |
|
|
$ |
2,390 |
|
|
$ |
3,680 |
|
|
$ |
3,524 |
|
Non-performing loans to total loans held for investment |
|
|
0.46 |
% |
|
|
0.29 |
% |
|
|
0.10 |
% |
|
|
0.17 |
% |
|
|
0.17 |
% |
Non-performing assets to total assets |
|
|
0.34 |
% |
|
|
0.22 |
% |
|
|
0.08 |
% |
|
|
0.12 |
% |
|
|
0.11 |
% |
Non-performing assets to total loans held for investment and
OREO |
|
|
0.46 |
% |
|
|
0.30 |
% |
|
|
0.11 |
% |
|
|
0.18 |
% |
|
|
0.18 |
% |
Annualized net charge-offs to average loans |
|
|
0.03 |
% |
|
|
0.02 |
% |
|
|
0.00 |
% |
|
|
0.01 |
% |
|
|
0.04 |
% |
Net charge-offs |
|
$ |
172 |
|
|
$ |
120 |
|
|
$ |
16 |
|
|
$ |
59 |
|
|
$ |
184 |
|
Interest Rates and
Yields: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans |
|
|
5.03 |
% |
|
|
4.62 |
% |
|
|
4.25 |
% |
|
|
3.97 |
% |
|
|
4.47 |
% |
Securities (1) |
|
|
2.53 |
% |
|
|
2.29 |
% |
|
|
2.11 |
% |
|
|
1.92 |
% |
|
|
1.84 |
% |
Total interest-earning assets (1) |
|
|
4.66 |
% |
|
|
4.17 |
% |
|
|
3.69 |
% |
|
|
3.20 |
% |
|
|
3.36 |
% |
Deposits |
|
|
1.20 |
% |
|
|
0.62 |
% |
|
|
0.23 |
% |
|
|
0.19 |
% |
|
|
0.19 |
% |
Borrowings and repurchase agreements |
|
|
4.22 |
% |
|
|
3.41 |
% |
|
|
2.79 |
% |
|
|
5.40 |
% |
|
|
5.29 |
% |
Total interest-bearing liabilities |
|
|
1.63 |
% |
|
|
0.93 |
% |
|
|
0.41 |
% |
|
|
0.33 |
% |
|
|
0.33 |
% |
Other
Information: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Full-time equivalent employees |
|
|
397 |
|
|
|
387 |
|
|
|
391 |
|
|
|
397 |
|
|
|
397 |
|
_____________________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
SUBSIDIARYAnalysis of Interest Income and Expense,
Rates and Yields (unaudited) (dollars in
thousands)Fourth quarter 2022 Earnings
Release
|
|
For the Three Months Ended December 31, |
|
|
|
2022 |
|
|
2021 |
|
|
|
AverageOutstandingBalance |
|
|
InterestIncome/Expense |
|
|
AverageYield/Rate |
|
|
AverageOutstandingBalance |
|
|
InterestIncome/Expense |
|
|
AverageYield/Rate |
|
Interest-Earning Assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans held for investment (1) |
|
$ |
2,309,349 |
|
|
$ |
29,278 |
|
|
|
5.03 |
% |
|
$ |
1,888,094 |
|
|
$ |
21,291 |
|
|
|
4.47 |
% |
Loans held for sale |
|
|
37,945 |
|
|
|
746 |
|
|
|
7.80 |
% |
|
|
123,962 |
|
|
|
993 |
|
|
|
3.18 |
% |
Securities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Taxable investment securities (2) |
|
|
361,563 |
|
|
|
2,239 |
|
|
|
2.48 |
% |
|
|
432,165 |
|
|
|
1,839 |
|
|
|
1.70 |
% |
Investment securities exempt from federal income tax (3) |
|
|
53,851 |
|
|
|
310 |
|
|
|
2.91 |
% |
|
|
58,970 |
|
|
|
335 |
|
|
|
2.88 |
% |
Total securities |
|
|
415,414 |
|
|
|
2,549 |
|
|
|
2.53 |
% |
|
|
491,135 |
|
|
|
2,174 |
|
|
|
1.84 |
% |
Cash balances in other banks |
|
|
122,493 |
|
|
|
1,187 |
|
|
|
3.84 |
% |
|
|
397,381 |
|
|
|
192 |
|
|
|
0.19 |
% |
Funds sold |
|
|
1,608 |
|
|
|
46 |
|
|
|
— |
|
|
|
19,906 |
|
|
|
9 |
|
|
|
— |
|
Total interest-earning
assets |
|
|
2,886,809 |
|
|
|
33,806 |
|
|
|
4.66 |
% |
|
|
2,920,478 |
|
|
|
24,659 |
|
|
|
3.36 |
% |
Noninterest-earning assets |
|
|
238,119 |
|
|
|
|
|
|
|
|
|
238,830 |
|
|
|
|
|
|
|
Total assets |
|
$ |
3,124,928 |
|
|
|
|
|
|
|
|
$ |
3,159,308 |
|
|
|
|
|
|
|
Interest-Bearing
Liabilities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing deposits: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing transaction accounts |
|
$ |
741,347 |
|
|
|
2,200 |
|
|
|
1.18 |
% |
|
$ |
964,932 |
|
|
|
410 |
|
|
|
0.17 |
% |
Savings and money market deposits |
|
|
717,999 |
|
|
|
2,701 |
|
|
|
1.49 |
% |
|
|
616,610 |
|
|
|
307 |
|
|
|
0.20 |
% |
Time deposits |
|
|
617,397 |
|
|
|
3,151 |
|
|
|
2.02 |
% |
|
|
383,099 |
|
|
|
556 |
|
|
|
0.58 |
% |
Total interest-bearing deposits |
|
|
2,076,743 |
|
|
|
8,052 |
|
|
|
1.54 |
% |
|
|
1,964,641 |
|
|
|
1,273 |
|
|
|
0.26 |
% |
Borrowings and repurchase agreements |
|
|
74,812 |
|
|
|
795 |
|
|
|
4.22 |
% |
|
|
29,514 |
|
|
|
394 |
|
|
|
5.29 |
% |
Total interest-bearing
liabilities |
|
|
2,151,555 |
|
|
|
8,847 |
|
|
|
1.63 |
% |
|
|
1,994,155 |
|
|
|
1,667 |
|
|
|
0.33 |
% |
Noninterest-bearing deposits |
|
|
586,211 |
|
|
|
|
|
|
|
|
|
748,673 |
|
|
|
|
|
|
|
Total funding sources |
|
|
2,737,766 |
|
|
|
|
|
|
|
|
|
2,742,828 |
|
|
|
|
|
|
|
Noninterest-bearing liabilities |
|
|
39,135 |
|
|
|
|
|
|
|
|
|
39,123 |
|
|
|
|
|
|
|
Shareholders’ equity |
|
|
348,027 |
|
|
|
|
|
|
|
|
|
377,357 |
|
|
|
|
|
|
|
Total liabilities and
shareholders’ equity |
|
$ |
3,124,928 |
|
|
|
|
|
|
|
|
$ |
3,159,308 |
|
|
|
|
|
|
|
Net interest spread (4) |
|
|
|
|
|
|
|
|
3.03 |
% |
|
|
|
|
|
|
|
|
3.03 |
% |
Net interest income/margin
(5) |
|
|
|
|
$ |
24,959 |
|
|
|
3.44 |
% |
|
|
|
|
$ |
22,992 |
|
|
|
3.14 |
% |
_____________________(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
SUBSIDIARYNon-GAAP Financial Measures (unaudited)
(dollars in thousands except share data)Fourth
quarter 2022 Earnings Release
|
|
Five Quarter Comparison |
|
|
|
12/31/2022 |
|
|
9/30/2022 |
|
|
6/30/2022 |
|
|
3/31/2022 |
|
|
12/31/2021 |
|
Operating net income: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income |
|
$ |
10,333 |
|
|
$ |
8,039 |
|
|
$ |
9,972 |
|
|
$ |
10,673 |
|
|
$ |
12,470 |
|
Add: acquisition related expenses |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Less: income tax impact of acquisition related expenses |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Operating net income |
|
$ |
10,333 |
|
|
$ |
8,039 |
|
|
$ |
9,972 |
|
|
$ |
10,673 |
|
|
$ |
12,470 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating diluted net income
per share of common stock: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating net income |
|
$ |
10,333 |
|
|
$ |
8,039 |
|
|
$ |
9,972 |
|
|
$ |
10,673 |
|
|
$ |
12,470 |
|
Weighted average shares - diluted |
|
|
21,926,821 |
|
|
|
21,988,085 |
|
|
|
22,074,260 |
|
|
|
22,254,644 |
|
|
|
22,221,989 |
|
Operating diluted net income per share of common stock |
|
$ |
0.47 |
|
|
$ |
0.37 |
|
|
$ |
0.45 |
|
|
$ |
0.48 |
|
|
$ |
0.56 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating annualized return on
average assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating net income |
|
$ |
10,333 |
|
|
$ |
8,039 |
|
|
$ |
9,972 |
|
|
$ |
10,673 |
|
|
$ |
12,470 |
|
Average assets |
|
$ |
3,124,928 |
|
|
$ |
3,146,841 |
|
|
$ |
3,128,864 |
|
|
$ |
3,153,320 |
|
|
$ |
3,159,308 |
|
Operating annualized return on average assets |
|
|
1.31 |
% |
|
|
1.01 |
% |
|
|
1.28 |
% |
|
|
1.37 |
% |
|
|
1.57 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating annualized return on
average tangible equity: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average total shareholders' equity |
|
$ |
348,027 |
|
|
$ |
364,138 |
|
|
$ |
361,150 |
|
|
$ |
380,039 |
|
|
$ |
377,357 |
|
Less: average intangible assets |
|
|
(46,328 |
) |
|
|
(46,737 |
) |
|
|
(47,160 |
) |
|
|
(47,604 |
) |
|
|
(48,054 |
) |
Average tangible equity |
|
|
301,699 |
|
|
|
317,401 |
|
|
|
313,990 |
|
|
|
332,435 |
|
|
|
329,303 |
|
Operating net income |
|
$ |
10,333 |
|
|
$ |
8,039 |
|
|
$ |
9,972 |
|
|
$ |
10,673 |
|
|
$ |
12,470 |
|
Operating annualized return on average tangible equity |
|
|
13.59 |
% |
|
|
10.05 |
% |
|
|
12.74 |
% |
|
|
13.02 |
% |
|
|
15.02 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating efficiency
ratio: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total noninterest expense |
|
$ |
16,628 |
|
|
$ |
17,931 |
|
|
$ |
17,075 |
|
|
$ |
17,736 |
|
|
$ |
18,682 |
|
Less: acquisition related expenses |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Total operating noninterest expense |
|
|
16,628 |
|
|
|
17,931 |
|
|
|
17,075 |
|
|
|
17,736 |
|
|
|
18,682 |
|
Net interest income |
|
|
24,959 |
|
|
|
25,553 |
|
|
|
24,440 |
|
|
|
21,140 |
|
|
|
22,992 |
|
Total noninterest income |
|
|
6,285 |
|
|
|
3,272 |
|
|
|
5,876 |
|
|
|
9,089 |
|
|
|
11,134 |
|
Total revenues |
|
$ |
31,244 |
|
|
$ |
28,825 |
|
|
$ |
30,316 |
|
|
$ |
30,229 |
|
|
$ |
34,126 |
|
Operating efficiency ratio: |
|
|
53.23 |
% |
|
|
62.21 |
% |
|
|
56.32 |
% |
|
|
58.67 |
% |
|
|
54.74 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating annualized pre-tax
pre-provision income to average assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income before income taxes |
|
$ |
13,068 |
|
|
$ |
10,027 |
|
|
$ |
12,398 |
|
|
$ |
13,277 |
|
|
$ |
16,095 |
|
Add: acquisition related expenses |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Add: provision for loan losses |
|
|
1,548 |
|
|
|
867 |
|
|
|
843 |
|
|
|
(784 |
) |
|
|
(651 |
) |
Operating pre-tax pre-provision income |
|
|
14,616 |
|
|
|
10,894 |
|
|
|
13,241 |
|
|
|
12,493 |
|
|
|
15,444 |
|
Average assets |
|
$ |
3,124,928 |
|
|
$ |
3,146,841 |
|
|
$ |
3,128,864 |
|
|
$ |
3,153,320 |
|
|
$ |
3,159,308 |
|
Operating annualized pre-tax pre-provision income to average
assets: |
|
|
1.86 |
% |
|
|
1.37 |
% |
|
|
1.70 |
% |
|
|
1.61 |
% |
|
|
1.94 |
% |
CAPSTAR FINANCIAL HOLDINGS, INC. AND
SUBSIDIARYNon-GAAP Financial Measures (unaudited)
(dollars in thousands except share data)Fourth
quarter 2022 Earnings Release
|
|
Five Quarter Comparison |
|
|
|
12/31/2022 |
|
|
9/30/2022 |
|
|
6/30/2022 |
|
|
3/31/2022 |
|
|
12/31/2021 |
|
Tangible Equity: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total shareholders' equity |
|
$ |
354,182 |
|
|
$ |
347,365 |
|
|
$ |
357,735 |
|
|
$ |
368,917 |
|
|
$ |
380,094 |
|
Less: intangible assets |
|
|
(46,069 |
) |
|
|
(46,468 |
) |
|
|
(46,883 |
) |
|
|
(47,313 |
) |
|
|
(47,759 |
) |
Tangible equity |
|
$ |
308,113 |
|
|
$ |
300,897 |
|
|
$ |
310,852 |
|
|
$ |
321,604 |
|
|
$ |
332,335 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tangible book value per share
of common stock: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tangible equity |
|
$ |
308,113 |
|
|
$ |
300,897 |
|
|
$ |
310,852 |
|
|
$ |
321,604 |
|
|
$ |
332,335 |
|
Total shares of stock outstanding |
|
|
21,714,380 |
|
|
|
21,931,624 |
|
|
|
21,934,554 |
|
|
|
22,195,071 |
|
|
|
22,166,129 |
|
Tangible book value per share of common stock |
|
$ |
14.19 |
|
|
$ |
13.72 |
|
|
$ |
14.17 |
|
|
$ |
14.49 |
|
|
$ |
14.99 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tangible book value per share
of common stock plus after-tax unrealized available for sale
investment losses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total shareholders' equity |
|
$ |
354,182 |
|
|
$ |
347,365 |
|
|
$ |
357,735 |
|
|
$ |
368,917 |
|
|
$ |
380,094 |
|
Less: intangible assets |
|
|
(46,069 |
) |
|
|
(46,468 |
) |
|
|
(46,883 |
) |
|
|
(47,313 |
) |
|
|
(47,759 |
) |
Add: after-tax unrealized available for saleinvestment (gains)
losses |
|
|
51,760 |
|
|
|
53,488 |
|
|
|
37,034 |
|
|
|
23,041 |
|
|
|
2,978 |
|
Tangible equity plus after-tax unrealized available for sale
investment (gains) losses |
|
$ |
359,873 |
|
|
$ |
354,385 |
|
|
$ |
347,886 |
|
|
$ |
344,645 |
|
|
$ |
335,313 |
|
Total shares of common stock outstanding |
|
|
21,714,380 |
|
|
|
21,931,624 |
|
|
|
21,934,554 |
|
|
|
22,195,071 |
|
|
|
22,166,129 |
|
Tangible book value per share of common stock plus after-tax
unrealized available for sale investment losses |
|
$ |
16.57 |
|
|
$ |
16.16 |
|
|
$ |
15.86 |
|
|
$ |
15.53 |
|
|
$ |
15.13 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tangible common equity to
tangible assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tangible equity |
|
$ |
308,113 |
|
|
$ |
300,897 |
|
|
$ |
310,852 |
|
|
$ |
321,604 |
|
|
$ |
332,335 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Assets |
|
$ |
3,117,169 |
|
|
$ |
3,165,706 |
|
|
$ |
3,096,537 |
|
|
$ |
3,190,749 |
|
|
$ |
3,133,046 |
|
Less: intangible assets |
|
|
(46,069 |
) |
|
|
(46,468 |
) |
|
|
(46,883 |
) |
|
|
(47,313 |
) |
|
|
(47,759 |
) |
Tangible assets |
|
$ |
3,071,100 |
|
|
$ |
3,119,238 |
|
|
$ |
3,049,654 |
|
|
$ |
3,143,436 |
|
|
$ |
3,085,287 |
|
Tangible common equity to tangible assets |
|
|
10.03 |
% |
|
|
9.65 |
% |
|
|
10.19 |
% |
|
|
10.23 |
% |
|
|
10.77 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tangible common equity to
tangible assets plus after-tax unrealized available for sale
investment losses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tangible equity plus after-tax unrealized available for sale
investment losses |
|
$ |
359,873 |
|
|
$ |
354,385 |
|
|
$ |
347,886 |
|
|
$ |
344,645 |
|
|
$ |
335,313 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tangible assets |
|
$ |
3,071,100 |
|
|
$ |
3,119,238 |
|
|
$ |
3,049,654 |
|
|
$ |
3,143,436 |
|
|
$ |
3,085,287 |
|
Add: after-tax unrealized available for saleinvestment losses |
|
|
51,760 |
|
|
|
53,488 |
|
|
|
37,034 |
|
|
|
23,041 |
|
|
|
2,978 |
|
Tangible assets plus after-tax unrealized available for sale
investment losses |
|
$ |
3,122,860 |
|
|
$ |
3,172,726 |
|
|
$ |
3,086,688 |
|
|
$ |
3,166,477 |
|
|
$ |
3,088,265 |
|
Tangible common equity to tangible assets plus after-tax unrealized
available for sale investment losses |
|
|
11.52 |
% |
|
|
11.17 |
% |
|
|
11.27 |
% |
|
|
10.88 |
% |
|
|
10.86 |
% |
CAPSTAR FINANCIAL HOLDINGS, INC. AND
SUBSIDIARYNon-GAAP Financial Measures (unaudited)
(dollars in thousands except share data)Fourth
quarter 2022 Earnings Release
|
|
12/31/2022 |
|
|
9/30/2022 |
|
|
6/30/2022 |
|
Average loans held for investment |
|
$ |
2,309,349 |
|
|
$ |
2,241,355 |
|
|
$ |
2,147,750 |
|
Less: Average PPP Loans |
|
|
(496 |
) |
|
|
(834 |
) |
|
|
(3,337 |
) |
Less: Average Tri-Net transfers from held for sale to held for
investment |
|
|
(115,386 |
) |
|
|
(106,590 |
) |
|
|
(58,757 |
) |
Loans held for investment excluding PPP loans and Tri-Net
transfers |
|
|
2,193,467 |
|
|
|
2,133,931 |
|
|
|
2,085,656 |
|
|
|
|
|
|
|
|
|
|
|
Annualized loans held for investment growth excluding PPP and
Tri-Net transfers |
|
|
11.1 |
% |
|
|
9.2 |
% |
|
|
|
|
|
12/31/2022 |
|
|
9/30/2022 |
|
Net interest income |
|
$ |
24,959 |
|
|
$ |
25,553 |
|
|
|
|
|
|
|
|
Noninterest income |
|
|
6,285 |
|
|
|
3,272 |
|
Less: Tri-Net losses |
|
|
— |
|
|
|
2,059 |
|
Noninterest income excluding Tri-Net losses |
|
|
6,285 |
|
|
|
5,331 |
|
|
|
|
|
|
|
|
Total income excluding Tri-Net losses |
|
|
31,244 |
|
|
|
30,884 |
|
|
|
|
|
|
|
|
Noninterest expense |
|
|
16,628 |
|
|
|
17,931 |
|
Less: Operational recoveries (losses) |
|
|
734 |
|
|
|
(2,197 |
) |
Less: Executive incentive reversal |
|
|
— |
|
|
|
770 |
|
Noninterest expense excluding operational losses and incentive
reversal |
|
|
17,362 |
|
|
|
16,504 |
|
|
|
|
|
|
|
|
Efficiency ratio excluding Tri-Net losses, operational losses, and
executive incentive reversal |
|
|
55.57 |
% |
|
|
53.44 |
% |
|
|
Five Quarter Comparison |
|
|
|
12/31/2022 |
|
|
9/30/2022 |
|
|
6/30/2022 |
|
|
3/31/2022 |
|
|
12/31/2021 |
|
Allowance for loan losses |
|
$ |
23,806 |
|
|
$ |
22,431 |
|
|
$ |
21,684 |
|
|
$ |
20,857 |
|
|
$ |
21,698 |
|
Purchase accounting marks |
|
|
2,438 |
|
|
|
2,535 |
|
|
|
2,717 |
|
|
|
2,838 |
|
|
|
3,003 |
|
Allowance for loan losses and purchase accounting fair value
marks |
|
|
26,244 |
|
|
|
24,966 |
|
|
|
24,401 |
|
|
|
23,695 |
|
|
|
24,701 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans held for investment |
|
|
2,312,798 |
|
|
|
2,290,269 |
|
|
|
2,234,833 |
|
|
|
2,047,555 |
|
|
|
1,965,769 |
|
Less: PPP Loans net of deferred fees |
|
|
221 |
|
|
|
748 |
|
|
|
921 |
|
|
|
6,529 |
|
|
|
26,539 |
|
Non-PPP Loans |
|
|
2,312,577 |
|
|
|
2,289,521 |
|
|
|
2,233,912 |
|
|
|
2,041,026 |
|
|
|
1,939,230 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Allowance for loan losses plus fair value marks / Non-PPP
Loans |
|
|
1.13 |
% |
|
|
1.09 |
% |
|
|
1.09 |
% |
|
|
1.16 |
% |
|
|
1.27 |
% |
_____________________(1) Net interest margin
and adjusted net interest margin are shown on a tax equivalent
basis.
CONTACT
Michael J. FowlerChief Financial
Officer(615) 732-7404
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