Advertisement
Australia markets closed
  • ALL ORDS

    8,153.70
    +80.10 (+0.99%)
     
  • ASX 200

    7,896.90
    +77.30 (+0.99%)
     
  • AUD/USD

    0.6519
    -0.0017 (-0.26%)
     
  • OIL

    82.99
    +1.64 (+2.02%)
     
  • GOLD

    2,241.20
    +28.50 (+1.29%)
     
  • Bitcoin AUD

    108,739.12
    +3,292.70 (+3.12%)
     
  • CMC Crypto 200

    885.54
    0.00 (0.00%)
     
  • AUD/EUR

    0.6041
    +0.0010 (+0.17%)
     
  • AUD/NZD

    1.0909
    +0.0029 (+0.26%)
     
  • NZX 50

    12,105.29
    +94.63 (+0.79%)
     
  • NASDAQ

    18,269.70
    -11.14 (-0.06%)
     
  • FTSE

    7,952.62
    +20.64 (+0.26%)
     
  • Dow Jones

    39,844.16
    +84.08 (+0.21%)
     
  • DAX

    18,492.49
    +15.40 (+0.08%)
     
  • Hang Seng

    16,541.42
    +148.58 (+0.91%)
     
  • NIKKEI 225

    40,168.07
    -594.66 (-1.46%)
     

CapStar Reports Third Quarter 2022 Results

CapStar Financial Holdings, Inc.
CapStar Financial Holdings, Inc.

NASHVILLE, Tenn., Oct. 20, 2022 (GLOBE NEWSWIRE) -- CapStar Financial Holdings, Inc. (“CapStar”) (NASDAQ:CSTR) today reported net income of $8.2 million or $0.37 per diluted share, for the quarter ended September 30, 2022, compared with net income of $10.0 million or $0.45 per diluted share, for the quarter ended June 30, 2022, and net income of $13.1 million or $0.59 per diluted share, for the quarter ended September 30, 2021. Annualized return on average assets and return on average equity for the quarter ended September 30, 2022 were 1.03 percent and 8.93 percent, respectively. Third quarter results include $2.1 million in losses related to Tri-Net loans, $2.2 million in two operational loss incidents, which occurred during the quarter and for which the bank is seeking a potential recovery, and $0.8 million of voluntary executive incentive reversals.

For the nine months ended September 30, 2022, the Company reported net income of $28.8 million or $1.30 per diluted share, compared with $36.2 million or $1.63 per diluted share, for the same period of 2021. Year to date 2022 annualized return on average assets and return on average equity were 1.23 percent and 10.47 percent, respectively.

Four Key Drivers

 

Targets

 

3Q22

 

2Q22

 

3Q21

Annualized revenue growth

 

> 5%

 

-19.51%

 

1.15%

 

20.49%

Net interest margin

 

≥ 3.60%

 

3.50%

 

3.41%

 

3.12%

Efficiency ratio

 

≤ 55%

 

61.53%

 

56.32%

 

53.06%

Annualized net charge-offs to average loans

 

≤ 0.25%

 

0.02%

 

0.00%

 

0.05%

 

 

 

 

 

 

 

 

 

"CapStar's third quarter earnings did not meet our expectations nor represent CapStar's continued strong performance," said Timothy K. Schools, CapStar President and Chief Executive Officer. "As we 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, and this quarter the Company experienced realized and unrealized losses totaling $2.1 million related to the remaining loans in process. Currently, no further Tri-Net loans exist in loans held for sale and of the $2.3 million of related losses recorded since second quarter, $900,000 are unrealized where there is a high probability that it will be recovered over time through accretion. Additionally, the Company experienced a $1.5 million wire fraud and $0.7 million operational loss for which the Company is pursuing possible recoveries."

ADVERTISEMENT

"Whereas the current market has proved challenging for Tri-Net and we are disappointed in these operational losses, the underlying quarterly performance of the bank was outstanding. Adjusting for these items, we experienced strong operating leverage with revenue rising $600,000 and expenses declining $800,000, our net interest margin expanded to 3.50%, efficiency ratio improved to 52.81%, and charge-offs remained low at 0.02%, resulting in a return on assets of 1.39% all with no contribution from our mortgage or Tri-Net divisions. While the current interest rate environment is presenting certain challenges to industry loan demand, mortgage banking, and deposits, we are proactively managing our loan portfolio for a potential economic slowdown and remain excited about our improved profitability, expanded high-growth markets, and strengthened sales teams."

Revenue

Total revenue, defined as net interest income plus noninterest income, was $28.8 million in the third quarter. Second and third quarter revenues were negatively impacted by $0.2 million and $2.1 million, respectively, as the Company liquidated and transferred the remaining balance of its Tri-Net loans held for sale to loans held for investment. Adjusting for the impact of the $2.1 million Tri-Net loss, net interest income and noninterest income totaled $25.6 million and $5.4 million, an increase of $1.1 million and a decrease of $0.7 million, respectively, from the second quarter of 2022. Rising interest rates and a positive mix shift in average earning assets contributed to the increase in net interest income, while noninterest income declined due to lower Tri-Net and mortgage division revenues.

Third quarter 2022 average earning assets remained flat at $2.91 billion compared to June 30, 2022 as strong loan growth was principally funded from cash. Average loans held for investment, excluding Tri-Net loan transfers from held for sale, increased $48.2 million, or 9.2 percent linked-quarter annualized. The current commercial loan pipeline remains strong, exceeding $550 million; however, during the quarter, the Company limited commercial real estate lending to established, existing customers as a result of a softening economic outlook and in an effort to balance loan demand with an increasingly challenging deposit environment.

For the third quarter of 2022, the net interest margin increased 9 basis points from the prior quarter to 3.50 percent primarily resulting from continued increases in interest rates and the positive mix shift in average earning assets.

The Company's average deposits totaled $2.66 billion in the third quarter of 2022, flat compared to the second quarter of 2022. During the quarter, the Company experienced a $39.4 million increase in average savings and money market accounts and a $111.1 million increase in higher cost average time deposits, primarily a result of brokered deposit issuances. These increases were partially offset by a $94.3 million decrease in interest-bearing transaction accounts, creating an overall net increase of $56.3 million in average interest-bearing deposits when compared to the second quarter of 2022. During the quarter, the Company’s lowest cost deposit category, noninterest-bearing, decreased 2.3 percent to 25.0 percent of total average deposits as of September 30, 2022. Total deposit costs increased 39 basis points to 0.62 percent compared to 0.23 percent for the prior quarter. A key longer-term strategic initiative is to create a stronger deposit-led culture with an emphasis on lower cost relationship-based deposits.

Noninterest income for the third quarter was $3.3 million. Noninterest income when adjusted for the Tri-Net losses during the quarter, decreased $0.5 million from the second quarter ended June 30, 2022. This decrease was attributable to a $0.9 million decline in mortgage revenue partially offset by a $0.3 million improvement in the Company’s SBA division. The Company’s mortgage division experienced a reduction in demand due to higher market rates and anticipates a difficult environment at least until the 2023 buying season returns. Tri-Net production remains halted until interest rates and the associated market stabilizes.

Noninterest Expense and Operating Efficiency

Improving productivity and operating efficiency is a key focus of the Company. During the quarter, the Company continued to exhibit strong expense discipline. Noninterest expense was $17.7 million for the third quarter. Noninterest expense when adjusted for the previously discussed $2.2 million in operational losses and $0.8 million executive incentive reversal, decreased $0.8 million from the second quarter of 2022 to $16.3 million in the third quarter of 2022. Additionally, as a result of the challenging mortgage environment, annualized mortgage expenses were reduced by approximately $0.4 million in the third quarter with the majority of the benefit to begin in fourth quarter of 2022.

For the quarter ended September 30, 2022, the efficiency ratio was 61.53%. The efficiency ratio adjusted for the operational losses, executive incentive reversal, and Tri-Net losses, was 52.81% percent, an improvement from 56.32 percent in the second quarter of 2022. Annualized noninterest expense, adjusted for the operational losses and executive incentive reversal, as a percentage of average assets decreased 13 basis points to 2.06 percent for the quarter ended September 30, 2022 compared to 2.19 percent for the quarter ended June 30, 2022. Assets per employee improved to $8.2 million as of September 30, 2022 compared to $7.9 million in the previous quarter. The continued discipline in productivity metrics demonstrates the Company's commitment to outstanding performance.

Asset Quality

Strong asset quality is a core tenant of the Company’s culture. Sound risk management led to continued low net charge-offs and strong credit metrics. Annualized net charge-offs to average loans for the three months ended September 30, 2022 were 0.02 percent. Criticized and classified loans continued to improve to $41.1 million or 1.79 percent of total loans at September 30, 2022, a $6.3 million or 33 basis point improvement from June 30, 2022, and included an upgrade of the Company's largest substandard shared national credit of $11.5 million. Past due loans increased to $14.4 million or 0.63 percent of total loans held for investment at September 30, 2022 compared to a record $2.6 million or 0.12 percent of total loans held for investment at June 30, 2022. The increase in past dues is principally related to two relationships totaling $8.3 million, of which the Company feels the risk of loss is nominal, $1.6 million of matured loans, which were not renewed by quarter end, and $0.4 million for three PPP loans, which are fully guaranteed. Non-performing assets to total loans and OREO increased to 0.30 percent at September 30, 2022 compared to 0.11 percent at June 30, 2022. The increase in non-performing assets is solely related to one of the two previously cited relationships.

The Company recorded a provision for loan losses of $0.9 million during the quarter as a result of continued strong loan growth and other qualitative factors. The allowance for loan losses plus the fair value mark on acquired loans to total loans, less PPP loans, was flat at 1.09 percent as of September 30, 2022 compared to June 30, 2022.

Asset Quality Data:

 

9/30/2022

 

 

6/30/2022

 

 

3/31/2022

 

 

12/31/2021

 

 

9/30/2021

 

Annualized net charge-offs to average loans

 

 

0.02

%

 

 

0.00

%

 

 

0.01

%

 

 

0.04

%

 

 

0.05

%

Criticized and classified loans to total loans

 

 

1.79

%

 

 

2.12

%

 

 

2.49

%

 

 

2.64

%

 

 

2.85

%

Loans- past due to total end of period loans

 

 

0.63

%

 

 

0.12

%

 

 

0.17

%

 

 

0.25

%

 

 

0.31

%

Loans- over 90 days past due to total end of period loans

 

 

0.27

%

 

 

0.02

%

 

 

0.05

%

 

 

0.11

%

 

 

0.12

%

Non-performing assets to total loans held for investment and OREO

 

 

0.30

%

 

 

0.11

%

 

 

0.18

%

 

 

0.18

%

 

 

0.20

%

Allowance for loan losses plus fair value marks / Non-PPP Loans

 

 

1.09

%

 

 

1.09

%

 

 

1.16

%

 

 

1.27

%

 

 

1.41

%

Allowance for loan losses to non-performing loans

 

 

333

%

 

 

974

%

 

 

596

%

 

 

666

%

 

 

657

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income Tax Expense

The Company’s third quarter effective income tax rate remained flat at 20 percent when compared to the prior quarter ended June 30, 2022. The Company anticipates its effective tax rate for 2022 to be approximately 20 percent.

Capital

The Company continues to be well capitalized with tangible equity of $302.1 million at September 30, 2022. Tangible book value per share of common stock for the quarter ended September 30, 2022 was $13.73 compared to $14.17 and $14.53 for the quarters ended June 30, 2022 and September 30, 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 September 30, 2022 was $16.22 compared to $15.86 and $14.59 for the quarters ended June 30, 2022 and September 30, 2021, respectively.

Capital ratios:

 

9/30/2022

 

 

6/30/2022

 

 

3/31/2022

 

 

12/31/2021

 

 

9/30/2021

 

Total risk-based capital

 

 

14.59

%

 

 

14.79

%

 

 

15.60

%

 

 

16.29

%

 

 

16.23

%

Common equity tier 1 capital

 

 

12.70

%

 

 

12.87

%

 

 

13.58

%

 

 

14.11

%

 

 

13.95

%

Leverage

 

 

11.22

%

 

 

11.10

%

 

 

10.99

%

 

 

10.69

%

 

 

10.28

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

The Company did not repurchase common stock in the third quarter of 2022. The total remaining authorization for future purchases was $23.9 million as of September 30, 2022. 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, 2023.

Dividend

On October 19, 2022, the Board of Directors of the Company approved a quarterly dividend of $0.10 per common share payable on November 23, 2022 to shareholders of record of CapStar’s common stock as of the close of business on November 9, 2022.

Conference Call and Webcast Information

CapStar will host a conference call and webcast at 9:00 a.m. Central Time on Friday, October 21, 2022. During the call, management will review the third 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 September 30, 2022, on a consolidated basis, CapStar had total assets of $3.2 billion, total loans of $2.3 billion, total deposits of $2.6 billion, and shareholders’ equity of $347.5 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 SUBSIDIARY
Consolidated Statements of Income (unaudited) (dollars in thousands, except share data)
Third quarter 2022 Earnings Release

 

 

 

Three Months Ended

 

 

Nine Months Ended

 

 

 

September 30,

 

 

September 30,

 

 

 

2022

 

 

2021

 

 

2022

 

 

2021

 

Interest income:

 

 

 

 

 

 

 

 

 

 

 

 

Loans, including fees

 

$

27,335

 

 

$

22,350

 

 

$

71,476

 

 

$

66,936

 

Securities:

 

 

 

 

 

 

 

 

 

 

 

 

Taxable

 

 

1,966

 

 

 

1,655

 

 

 

5,643

 

 

 

4,900

 

Tax-exempt

 

 

314

 

 

 

344

 

 

 

958

 

 

 

1,065

 

Federal funds sold

 

 

7

 

 

 

9

 

 

 

31

 

 

 

12

 

Restricted equity securities

 

 

215

 

 

 

161

 

 

 

544

 

 

 

482

 

Interest-bearing deposits in financial institutions

 

 

617

 

 

 

171

 

 

 

1,076

 

 

 

405

 

Total interest income

 

 

30,454

 

 

 

24,690

 

 

 

79,728

 

 

 

73,800

 

Interest expense:

 

 

 

 

 

 

 

 

 

 

 

 

Interest-bearing deposits

 

 

1,205

 

 

 

390

 

 

 

2,279

 

 

 

1,216

 

Savings and money market accounts

 

 

1,603

 

 

 

288

 

 

 

2,401

 

 

 

896

 

Time deposits

 

 

1,332

 

 

 

654

 

 

 

2,271

 

 

 

2,317

 

Federal funds purchased

 

 

2

 

 

 

 

 

 

2

 

 

 

 

Federal Home Loan Bank advances

 

 

365

 

 

 

 

 

 

461

 

 

 

12

 

Subordinated notes

 

 

394

 

 

 

394

 

 

 

1,181

 

 

 

1,181

 

Total interest expense

 

 

4,901

 

 

 

1,726

 

 

 

8,595

 

 

 

5,622

 

Net interest income

 

 

25,553

 

 

 

22,964

 

 

 

71,133

 

 

 

68,178

 

Provision for loan losses

 

 

867

 

 

 

 

 

 

926

 

 

 

(415

)

Net interest income after provision for loan losses

 

 

24,686

 

 

 

22,964

 

 

 

70,207

 

 

 

68,593

 

Noninterest income:

 

 

 

 

 

 

 

 

 

 

 

 

Deposit service charges

 

 

1,251

 

 

 

1,187

 

 

 

3,575

 

 

 

3,398

 

Interchange and debit card transaction fees

 

 

1,245

 

 

 

1,236

 

 

 

3,803

 

 

 

3,555

 

Mortgage banking

 

 

765

 

 

 

4,693

 

 

 

4,436

 

 

 

13,318

 

Tri-Net

 

 

(2,059

)

 

 

1,939

 

 

 

39

 

 

 

4,618

 

Wealth management

 

 

385

 

 

 

481

 

 

 

1,284

 

 

 

1,412

 

SBA lending

 

 

560

 

 

 

911

 

 

 

1,054

 

 

 

1,781

 

Net gain on sale of securities

 

 

7

 

 

 

7

 

 

 

8

 

 

 

20

 

Other noninterest income

 

 

1,118

 

 

 

1,197

 

 

 

4,038

 

 

 

3,446

 

Total noninterest income

 

 

3,272

 

 

 

11,651

 

 

 

18,237

 

 

 

31,548

 

Noninterest expense:

 

 

 

 

 

 

 

 

 

 

 

 

Salaries and employee benefits

 

 

8,235

 

 

 

10,980

 

 

 

27,713

 

 

 

31,210

 

Data processing and software

 

 

2,861

 

 

 

2,632

 

 

 

8,355

 

 

 

8,530

 

Occupancy

 

 

1,092

 

 

 

1,028

 

 

 

3,266

 

 

 

3,193

 

Equipment

 

 

743

 

 

 

760

 

 

 

2,235

 

 

 

2,640

 

Professional services

 

 

468

 

 

 

469

 

 

 

1,653

 

 

 

1,634

 

Regulatory fees

 

 

269

 

 

 

279

 

 

 

814

 

 

 

746

 

Acquisition related expenses

 

 

 

 

 

 

 

 

 

 

 

323

 

Amortization of intangibles

 

 

415

 

 

 

477

 

 

 

1,291

 

 

 

1,478

 

Other operating

 

 

3,652

 

 

 

1,741

 

 

 

7,218

 

 

 

5,105

 

Total noninterest expense

 

 

17,735

 

 

 

18,366

 

 

 

52,545

 

 

 

54,859

 

Income before income taxes

 

 

10,223

 

 

 

16,249

 

 

 

35,899

 

 

 

45,282

 

Income tax expense

 

 

2,030

 

 

 

3,147

 

 

 

7,060

 

 

 

9,075

 

Net income

 

$

8,193

 

 

$

13,102

 

 

$

28,839

 

 

$

36,207

 

Per share information:

 

 

 

 

 

 

 

 

 

 

 

 

Basic net income per share of common stock

 

$

0.37

 

 

$

0.59

 

 

$

1.31

 

 

$

1.64

 

Diluted net income per share of common stock

 

$

0.37

 

 

$

0.59

 

 

$

1.30

 

 

$

1.63

 

Weighted average shares outstanding:

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

 

21,938,259

 

 

 

22,164,278

 

 

 

22,051,950

 

 

 

22,114,948

 

Diluted

 

 

21,988,085

 

 

 

22,218,402

 

 

 

22,104,687

 

 

 

22,165,130

 



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)
Third quarter 2022 Earnings Release

 

 

 

Five Quarter Comparison

 

 

 

9/30/2022

 

 

6/30/2022

 

 

3/31/2022

 

 

12/31/2021

 

 

9/30/2021

 

Income Statement Data:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net interest income

 

$

25,553

 

 

$

24,440

 

 

$

21,140

 

 

$

22,992

 

 

$

22,964

 

Provision for loan losses

 

 

867

 

 

 

843

 

 

 

(784

)

 

 

(651

)

 

 

 

Net interest income after provision for loan losses

 

 

24,686

 

 

 

23,597

 

 

 

21,924

 

 

 

23,643

 

 

 

22,964

 

Deposit service charges

 

 

1,251

 

 

 

1,182

 

 

 

1,142

 

 

 

1,117

 

 

 

1,187

 

Interchange and debit card transaction fees

 

 

1,245

 

 

 

1,336

 

 

 

1,222

 

 

 

1,261

 

 

 

1,236

 

Mortgage banking

 

 

765

 

 

 

1,705

 

 

 

1,966

 

 

 

2,740

 

 

 

4,693

 

Tri-Net

 

 

(2,059

)

 

 

(73

)

 

 

2,171

 

 

 

3,996

 

 

 

1,939

 

Wealth management

 

 

385

 

 

 

459

 

 

 

440

 

 

 

438

 

 

 

481

 

SBA lending

 

 

560

 

 

 

273

 

 

 

222

 

 

 

279

 

 

 

911

 

Net gain (loss) on sale of securities

 

 

7

 

 

 

 

 

 

 

 

 

8

 

 

 

7

 

Other noninterest income

 

 

1,118

 

 

 

994

 

 

 

1,926

 

 

 

1,295

 

 

 

1,197

 

Total noninterest income

 

 

3,272

 

 

 

5,876

 

 

 

9,089

 

 

 

11,134

 

 

 

11,651

 

Salaries and employee benefits

 

 

8,235

 

 

 

9,209

 

 

 

10,269

 

 

 

10,549

 

 

 

10,980

 

Data processing and software

 

 

2,861

 

 

 

2,847

 

 

 

2,647

 

 

 

2,719

 

 

 

2,632

 

Occupancy

 

 

1,092

 

 

 

1,076

 

 

 

1,099

 

 

 

1,012

 

 

 

1,028

 

Equipment

 

 

743

 

 

 

783

 

 

 

709

 

 

 

867

 

 

 

760

 

Professional services

 

 

468

 

 

 

506

 

 

 

679

 

 

 

521

 

 

 

469

 

Regulatory fees

 

 

269

 

 

 

265

 

 

 

280

 

 

 

284

 

 

 

279

 

Acquisition related expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Amortization of intangibles

 

 

415

 

 

 

430

 

 

 

446

 

 

 

461

 

 

 

477

 

Other noninterest expense

 

 

3,652

 

 

 

1,959

 

 

 

1,607

 

 

 

2,269

 

 

 

1,741

 

Total noninterest expense

 

 

17,735

 

 

 

17,075

 

 

 

17,736

 

 

 

18,682

 

 

 

18,366

 

Net income before income tax expense

 

 

10,223

 

 

 

12,398

 

 

 

13,277

 

 

 

16,095

 

 

 

16,249

 

Income tax expense

 

 

2,030

 

 

 

2,426

 

 

 

2,604

 

 

 

3,625

 

 

 

3,147

 

Net income

 

$

8,193

 

 

$

9,972

 

 

$

10,673

 

 

$

12,470

 

 

$

13,102

 

Weighted average shares - basic

 

 

21,938,259

 

 

 

22,022,109

 

 

 

22,198,339

 

 

 

22,166,410

 

 

 

22,164,278

 

Weighted average shares - diluted

 

 

21,988,085

 

 

 

22,074,260

 

 

 

22,254,644

 

 

 

22,221,989

 

 

 

22,218,402

 

Net income per share, basic

 

$

0.37

 

 

$

0.45

 

 

$

0.48

 

 

$

0.56

 

 

$

0.59

 

Net income per share, diluted

 

 

0.37

 

 

 

0.45

 

 

 

0.48

 

 

 

0.56

 

 

 

0.59

 

Balance Sheet Data (at period end):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

199,913

 

 

$

113,825

 

 

$

355,981

 

 

$

415,125

 

 

$

359,267

 

Securities available-for-sale

 

 

401,345

 

 

 

437,420

 

 

 

460,558

 

 

 

459,396

 

 

 

483,778

 

Securities held-to-maturity

 

 

1,762

 

 

 

1,769

 

 

 

1,775

 

 

 

1,782

 

 

 

1,788

 

Loans held for sale

 

 

43,122

 

 

 

85,884

 

 

 

106,895

 

 

 

83,715

 

 

 

176,488

 

Loans held for investment

 

 

2,292,781

 

 

 

2,234,833

 

 

 

2,047,555

 

 

 

1,965,769

 

 

 

1,894,249

 

Allowance for loan losses

 

 

(22,431

)

 

 

(21,684

)

 

 

(20,857

)

 

 

(21,698

)

 

 

(22,533

)

Total assets

 

 

3,166,687

 

 

 

3,096,537

 

 

 

3,190,749

 

 

 

3,133,046

 

 

 

3,112,127

 

Non-interest-bearing deposits

 

 

629,556

 

 

 

717,167

 

 

 

702,172

 

 

 

725,171

 

 

 

718,299

 

Interest-bearing deposits

 

 

2,004,827

 

 

 

1,913,320

 

 

 

2,053,823

 

 

 

1,959,110

 

 

 

1,956,093

 

Federal Home Loan Bank advances and other borrowings

 

 

149,633

 

 

 

74,599

 

 

 

29,566

 

 

 

29,532

 

 

 

29,499

 

Total liabilities

 

 

2,819,169

 

 

 

2,738,802

 

 

 

2,821,832

 

 

 

2,752,952

 

 

 

2,741,799

 

Shareholders' equity

 

$

347,518

 

 

$

357,735

 

 

$

368,917

 

 

$

380,094

 

 

$

370,328

 

Total shares of common stock outstanding

 

 

21,931,624

 

 

 

21,934,554

 

 

 

22,195,071

 

 

 

22,166,129

 

 

 

22,165,760

 

Book value per share of common stock

 

$

15.85

 

 

$

16.31

 

 

$

16.62

 

 

$

17.15

 

 

$

16.71

 

Tangible book value per share of common stock*

 

 

13.73

 

 

 

14.17

 

 

 

14.49

 

 

 

14.99

 

 

 

14.53

 

Tangible book value per share of common stock less after-tax unrealized available for sale investment (gains) losses*

 

 

16.17

 

 

 

15.86

 

 

 

15.53

 

 

 

15.13

 

 

 

14.59

 

Market value per share of common stock

 

$

18.53

 

 

$

19.62

 

 

$

21.08

 

 

$

21.03

 

 

$

21.24

 

Capital ratios:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total risk-based capital

 

 

14.59

%

 

 

14.79

%

 

 

15.60

%

 

 

16.29

%

 

 

16.23

%

Tangible common equity to tangible assets*

 

 

9.65

%

 

 

10.19

%

 

 

10.23

%

 

 

10.77

%

 

 

10.51

%

Tangible common equity to tangible assets less after-tax unrealized available for sale investment (gains) losses*

 

 

11.17

%

 

 

11.27

%

 

 

10.88

%

 

 

10.86

%

 

 

10.55

%

Common equity tier 1 capital

 

 

12.70

%

 

 

12.87

%

 

 

13.58

%

 

 

14.11

%

 

 

13.95

%

Leverage

 

 

11.22

%

 

 

11.10

%

 

 

10.99

%

 

 

10.69

%

 

 

10.28

%


_____________________

*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)
Third quarter 2022 Earnings Release

 

 

 

Five Quarter Comparison

 

 

 

9/30/2022

 

 

6/30/2022

 

 

3/31/2022

 

 

12/31/2021

 

 

9/30/2021

 

Average Balance Sheet Data:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

154,543

 

 

$

189,542

 

 

$

380,262

 

 

$

470,963

 

 

$

411,101

 

Investment securities

 

 

450,933

 

 

 

473,167

 

 

 

483,339

 

 

 

491,135

 

 

 

515,877

 

Loans held for sale

 

 

94,811

 

 

 

114,223

 

 

 

90,163

 

 

 

123,962

 

 

 

173,402

 

Loans held for investment

 

 

2,241,382

 

 

 

2,147,750

 

 

 

2,001,740

 

 

 

1,888,094

 

 

 

1,884,935

 

Assets

 

 

3,146,852

 

 

 

3,128,864

 

 

 

3,153,320

 

 

 

3,159,308

 

 

 

3,171,182

 

Interest bearing deposits

 

 

1,993,172

 

 

 

1,936,910

 

 

 

1,976,803

 

 

 

1,964,641

 

 

 

1,980,304

 

Deposits

 

 

2,659,275

 

 

 

2,664,614

 

 

 

2,704,938

 

 

 

2,713,314

 

 

 

2,732,165

 

Federal Home Loan Bank advances and other borrowings

 

 

88,584

 

 

 

70,516

 

 

 

29,547

 

 

 

29,514

 

 

 

29,495

 

Liabilities

 

 

2,782,712

 

 

 

2,767,714

 

 

 

2,773,281

 

 

 

2,781,951

 

 

 

2,803,375

 

Shareholders' equity

 

 

364,140

 

 

 

361,150

 

 

 

380,039

 

 

 

377,357

 

 

 

367,807

 

Performance Ratios:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Annualized return on average assets

 

 

1.03

%

 

 

1.28

%

 

 

1.37

%

 

 

1.57

%

 

 

1.64

%

Annualized return on average equity

 

 

8.93

%

 

 

11.08

%

 

 

11.39

%

 

 

13.11

%

 

 

14.13

%

Net interest margin (1)

 

 

3.50

%

 

 

3.41

%

 

 

2.97

%

 

 

3.14

%

 

 

3.12

%

Annualized noninterest income to average assets

 

 

0.41

%

 

 

0.75

%

 

 

1.17

%

 

 

1.40

%

 

 

1.46

%

Efficiency ratio

 

 

61.53

%

 

 

56.32

%

 

 

58.67

%

 

 

54.74

%

 

 

53.06

%

Loans by Type (at period end):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial and industrial

 

$

499,048

 

 

$

510,987

 

 

$

499,719

 

 

$

497,615

 

 

$

478,279

 

Commercial real estate - owner occupied

 

 

235,519

 

 

 

241,461

 

 

 

231,933

 

 

 

209,261

 

 

 

193,139

 

Commercial real estate - non-owner occupied

 

 

833,686

 

 

 

786,610

 

 

 

652,936

 

 

 

616,023

 

 

 

579,857

 

Construction and development

 

 

198,869

 

 

 

205,573

 

 

 

208,513

 

 

 

214,310

 

 

 

210,516

 

Consumer real estate

 

 

386,628

 

 

 

357,849

 

 

 

327,416

 

 

 

326,412

 

 

 

328,262

 

Consumer

 

 

52,715

 

 

 

53,227

 

 

 

48,790

 

 

 

46,811

 

 

 

45,669

 

Other

 

 

86,316

 

 

 

79,126

 

 

 

78,248

 

 

 

55,337

 

 

 

58,527

 

Asset Quality Data:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Allowance for loan losses to total loans

 

 

0.98

%

 

 

0.97

%

 

 

1.02

%

 

 

1.10

%

 

 

1.19

%

Allowance for loan losses to non-performing loans

 

 

974

%

 

 

974

%

 

 

596

%

 

 

666

%

 

 

657

%

Nonaccrual loans

 

$

6,734

 

 

$

2,225

 

 

$

3,502

 

 

$

3,258

 

 

$

3,431

 

Troubled debt restructurings

 

 

344

 

 

 

86

 

 

 

1,847

 

 

 

1,832

 

 

 

1,859

 

Loans - over 90 days past due

 

 

6,096

 

 

 

494

 

 

 

1,076

 

 

 

2,120

 

 

 

2,333

 

Total non-performing loans