CapStar Announces Expansion to Asheville

Rhea-AI Summary

CapStar Bank, a subsidiary of CapStar Financial Holdings (NASDAQ: CSTR), is expanding into Asheville, North Carolina, with Martin Nesbitt as the new Asheville Market President. This move aims to serve the local market of small to medium-sized businesses and individuals, amidst a historical decline of community banks in the area. Timothy K. Schools, CEO, emphasized significant growth in previous expansions, with Chattanooga and Knoxville nearing $400 million in assets. CapStar currently boasts $3.2 billion in assets, providing personalized banking services across 23 financial centers in Tennessee.

Positive

• Expansion into Asheville, targeting a market with reduced community banking options.
• Appointment of Martin Nesbitt, a local with over 30 years of banking experience.
• Strong initial results in previous expansions, with Chattanooga and Knoxville approaching $400 million in assets.

Negative

• None.

To be Led by Martin Nesbitt and Local Business Leaders Sutton Bacon, Chris Eller, and Cale Smith

NASHVILLE, Tenn., July 08, 2022 (GLOBE NEWSWIRE) -- CapStar Bank, a subsidiary of CapStar Financial Holdings (NASDAQ: CSTR), today announced its entry into Asheville. Martin Nesbitt has joined CapStar as Asheville Market President and will begin building a team of experienced financial professionals to serve small to medium-sized businesses and their owners, professionals, real estate investors, and relationship retail customers.   Martin will be joined by prominent local business leaders Sutton Bacon, Chris Eller, and Cale Smith who will lead the development of a strong and effective local advisory board. The process is underway to identify CapStar’s first office in North Carolina.

“CapStar is excited to continue its momentum by expanding into the dynamic Western North Carolina market,” said Timothy K. Schools, President and Chief Executive Officer of CapStar. “One of the South’s most attractive places to live and work, Asheville lost the majority of its community banks over the past decade and is now principally served by extremely large banks, often with less personal service and bankers out of Charlotte. As an Asheville native, Martin’s deep local banking experience and the Nesbitt family’s long history of community involvement are the perfect match for CapStar’s unique, highly responsive and flexible business model. We look forward to returning local community banking to The Land of the Sky.”

“In an effort to invest excess capital, diversify risk, and increase revenue growth, we have attracted leading banking teams in Asheville, Chattanooga, and Knoxville over the past two years,” Schools continued. “Our initial results have exceeded expectations with Chattanooga and Knoxville approaching $400 million in total assets, achieving preprovision profitability in 6 months, and full preprovision earnback in 8 months. CapStar is now strategically positioned in four of the nation’s strongest markets and our recent investments in these three communities provide significant upside in our future profitability and growth.”

Martin Nesbitt, Asheville Market President (martin.nesbitt@capstarbank.com)

With over 30 years of Asheville banking experience, Martin joins CapStar having most recently served as Senior Commercial Relationship Manager at First Horizon Bank for 15 years. Martin began his career in 1989 as Small Business and Commercial Banker for Wachovia. Subsequently, he worked for RBC Bank as a Commercial Relationship Manager.

The Nesbitt family has deep Western North Carolina roots with Martin’s father, grandfather, and grandmother serving the community in the North Carolina House of Representatives and Senate for nearly a half a century with Martin’s father achieving the honor of Senate Majority Leader. Martin earned a bachelor’s degree in business administration and management from the University of North Carolina at Chapel Hill.

“Our community is built on entrepreneurs and local business owners who desire a caring bank with local talent and decision making,” Nesbitt said. “CapStar is an outstanding match with a stellar reputation of flexibility, responsiveness, and customer service. At $3 billion, we are small enough for our employees and customers to be heard but we have the skill and products of larger banks – a combination that is lacking in our market. I look forward to building on CapStar’s recent success in bringing its higher touch model to Chattanooga and Knoxville.”

About CapStar

CapStar Bank, with assets of $3.2 billion, provides a relationship-based and highly personal banking experience to small to mid-sized private businesses, professionals, and individuals. Focused on delivering superior flexibility, responsiveness, and customer service, CapStar serves customers through highly-skilled employees, digital channels, as well as 23 financial centers across 13 Tennessee counties.

For more information about CapStar, please visit www.capstarbank.com.

For more information, contact:
Nicole Gibbs, (423) 457-4579
nicole.gibbs@capstarbank.com 

FAQ

What does CapStar Bank's expansion into Asheville mean for local businesses?

CapStar aims to provide personalized banking services to small and medium-sized businesses in Asheville, filling a gap left by the decline of community banks.

Who is leading CapStar Bank's new Asheville branch?

Martin Nesbitt has been appointed as the Asheville Market President and will build a team of local banking professionals.

What are CapStar Bank's asset figures after the expansion?

CapStar Bank currently has assets of $3.2 billion, reflecting its strong financial position.

How has CapStar Bank performed in recent expansions before Asheville?

In Chattanooga and Knoxville, CapStar achieved preprovision profitability in just 6 months and is nearing $400 million in total assets.

What is the significance of the leadership team in Ashville?

Local leaders Sutton Bacon, Chris Eller, and Cale Smith will help establish a strong advisory board, enhancing community ties.