CapStar Bank Announces Fourth Quarter Earnings

Emphasis on organic growth drives 51 percent increase in net income

Jan 29, 2016, 15:24 ET from CapStar Bank

NASHVILLE, Tenn., Jan. 29, 2016 /PRNewswire/ -- CapStar Bank reported net income of $2.09 million for the quarter ended December 31, 2015. For the full year, the bank reported net income of $7.56 million compared to $5.00 million in 2014, an increase of 51 percent driven by strong fee income growth, consistent loan growth, and continued core deposit growth.

"Despite another year of historically low interest rates, our associates delivered strong results in 2015," said Claire Tucker, President and Chief Executive Officer of CapStar Bank. "We are excited about the outlook for 2016 as we focus on organic growth, leveraging our investments in talent and strong capital base to further increase shareholder returns."

Profitability

  • Return on average tangible common equity ("ROATCE") was 9.62 percent for the quarter ended December 31, 2015, and 9.01 percent for the entire year.
  • Return on average assets ("ROAA") was 0.73 percent for the 4th quarter ended December 31, 2015, and 0.66 percent for the entire year as the company continues to drive revenue from its investment in new initiatives.
  • Net interest margin ("NIM") was 3.22 percent for the quarter ended December 31, 2015, and 3.19 percent for the entire year.  The improvement in net interest margin was impacted by improving loan yields on new production, as well as an increase to the loan to deposit ratio during the year.

Growth

  • Gross loans, including loans held for sale, for the quarter ended December 31, 2015 increased to $844.1 million compared to $728.5 million for the same quarter in 2014, a year-over-year increase of 16 percent.
  • Demand deposits for the quarter ended December 31, 2015 increased to $190.6 million compared to $157.4 million for the same quarter in 2014, a year-over-year increase of 21 percent.
  • Mortgage originations for the year ended December 31, 2015 were strong and experienced a year-over-year increase of 55 percent. 
  • Total assets for the quarter ended December 31, 2015 increased to $1.21 billion compared to $1.13 billion for the same quarter in 2014, a year-over-year increase of 7 percent.

"Our lenders continue to post consistent loan growth focusing on full relationship customers while maintaining our desired credit standard," said Dan W. Hogan, Chief Operating Officer. 

 Soundness

  • Nonperforming loans decreased to 0.34 percent of total loans at December 31, 2015 compared to 1.58 percent at the end of the same quarter in 2014.
  • There were no charge-offs during the 4th quarter 2015, compared to 0.28 percent for the same quarter in 2014.
  • The bank maintained capital ratios in excess of the regulatory guidelines for well capitalized banks during the quarter ended December 31, 2015, with the Total Risk Based Capital ratio holding strong at 11.4 percent and the Tier 1 Leverage ratio increasing to 9.3 percent.

"We have emphasized sound, profitable growth, which is directly reflected in our quarterly and year-end results," said Rob Anderson, Chief Financial Officer. "In addition, our balance sheet is positioned to benefit from the mid-December increase in the federal funds rate. Combined with our sound credit metrics and capital levels, we are poised for a strong performance in 2016. "

CapStar Bank opened on July 14, 2008. The tenth largest bank in Nashville's MSA with assets of $1.2 billion, CapStar is a full service, commercially oriented bank. CapStar has two branches in Davidson County, one branch in Williamson County and two in Sumner County. For more information about CapStar, visit www.CapStarBank.com.

CapStar Bank: We're listening.

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SOURCE CapStar Bank



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