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.
CONTACTRob AndersonChief Financial Officer and Chief Administrative Officer(615) 732-6470

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