CapStar Bank Q3 Metrics Continue Positive Trajectory

NASHVILLE, Tenn. - Nov. 2, 2015 - PRLog -- CapStar Bank reported net income of $2.01 million for the quarter ending 9-30-15. On a year-to-date basis, the bank reported net income of $5.47 million for the period ending 9-30-15 compared to $4.30 million for the same period in 2014, an increase of 27 percent.

“CapStar continues to excel in a robust Nashville market, as our strong third quarter results improve on the bank’s already strong first half performance,” said Claire W. Tucker, President and CEO of CapStar Bank. “We remain focused on strengthening our relationships with Nashville’s business leaders and working with them to grow their businesses in this dynamic marketplace. Our continued organic growth is a direct result of the success we have experienced in this area.”

Profitability
·         Return on average equity ("ROAE") was 7.50 percent and return on average assets ("ROAA") was 0.71 percent for the quarter ended 9-30-15.
·         The bank’s net interest margin for the quarter ended 9-30-15 increased to 3.45 percent compared to 3.16 percent for the same quarter last year.

Growth
·         Gross loans, including loans held for sale, for the quarter ended 9-30-15 increased to $811.2 million compared to $729.5 million for the same quarter last year, a year-over-year increase of 11 percent.
·         Demand deposits for the quarter ended 9-30-15 increased to $187.1 million compared to $144.4 million for the same quarter last year, a year-over-year increase of 30 percent.
·         Total assets for the quarter ended 9-30-15 increased to $1.14 billion compared to $1.08 billion for the same quarter last year, a year-over-year increase of 5 percent.
Dan W. Hogan, Chief Operating Officer, said, “The investments we have made in talent continue to be a positive factor in the growth of the company.”

Soundness
·         The allowance for loan losses represented 1.24 percent of total loans at 9-30-15 compared to 1.21 percent at 9-30-14.
·         Nonperforming loans decreased to 0.38 percent of total loans at 9-30-15 compared to 1.45 percent at 9-30-14.
·         There were no charge-offs during the quarter, and a small amount of recoveries for a net charge-off ratio of -0.10 percent of average loans at 9-30-15 compared to 0.09 percent at 9-30-14.
·         The bank maintains capital ratios in excess of the regulatory guidelines for well capitalized banks, with Total Risk Based Capital and Tier 1 Leverage ratios for the quarter ended 9-30-15 increasing to 11.4 percent and 9.2 percent, respectively.

“We continue to build upon the bank’s strong performance increasing earnings each quarter and improving both profitability and credit metrics,” said Rob Anderson, Chief Financial Officer.

CapStar Bank opened on July 14, 2008. CapStar is the tenth largest bank in Nashville’s MSA with assets of $1.14 billion. CapStar is headquartered at 201 Fourth Avenue in downtown Nashville. For more information about CapStar, visit www.CapStarBank.com.