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%

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(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%

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* 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.

CONTACT

Rob Anderson
Chief Financial Officer and Chief Administrative Officer
(615) 732-6470

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