CapStar Issues Updated Financial Figures
CapStar Financial Holdings, Inc. (Nasdaq: CSTR) reported its financial standing as of March 10, 2023, emphasizing its strong capital, liquidity, and asset quality amidst recent industry challenges. The company maintains a well-diversified business model, emphasizing traditional banking services without exposure to cryptocurrency or fintech. As of year-end, 53.7% of deposit accounts were under $250,000. The tangible common equity ratio stood at 9.8%, exceeding regulatory guidelines. CapStar's liquidity includes $140 million in cash and $175 million in marketable securities, with solid asset quality reflected in a 5-star Bauer Financial rating.
- Well-diversified business model with no exposure to cryptocurrency or fintech.
- Tangible common equity ratio of 9.8%, exceeding regulatory benchmarks.
- Strong liquidity with $140 million in cash and $175 million in unpledged securities.
- Asset quality rated 5-stars by Bauer Financial, indicating strong financial health.
- None.
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Reiterates Strong Capital, Liquidity, and Asset Quality Position
NASHVILLE, Tenn., March 12, 2023 (GLOBE NEWSWIRE) -- CapStar Financial Holdings, Inc. (Nasdaq: CSTR), a bank holding company with
“While the events of the past week are unfortunate, the impacted institutions operated very unique business models which presented unique risks. CapStar is a conservative and well-diversified company with a history of solid performance and risk management. We target and maintain a diverse business mix of established, known customers that principally operate and live in our seven communities. Importantly, we have no deposits, loans, or equity investments related to cryptocurrency/digital-assets or fintech,” said Timothy K. Schools, President and Chief Executive Officer of CapStar. “We intentionally maintain a balanced and disciplined approach to capital, liquidity, asset quality, and earnings, which has proven to differentiate us during challenging operating environments. I am extremely proud of our employees who continue to provide outstanding service and assistance to customers as we all work together to navigate the current inflationary period.”
- CapStar’s wholly-owned subsidiary, CapStar Bank, operates a relationship-based business model offering traditional banking services to a geographically and industry-diversified mix of small to mid-sized businesses, their owners, professionals, individuals, and real estate investors;
- No depositor or industry comprises a significant portion of total deposits; as of year end, 53.7 percent of deposit accounts were less than
$250,000 , which would rank CapStar 8th best among the nation’s 100 largest banks and 2nd among the five largest Tennessee-based banks by total assets, and another approximate 14 percent of deposits were collateralized or otherwise insured; - Investment securities accounted for 12.9 percent of total assets and nearly 100 percent were categorized as available-for-sale, with associated unrealized losses recorded in tangible common equity, as of February 28, 2023 with no sales, purchases, or material value differences since that date;
- Loans held for investment are principally to CapStar-led, established, in-market customers supported by strong collateral and or guarantees with geographic, industry, and size diversification;
- Capital remains strong with tangible common equity ratio and common equity tier 1 risk-based capital ratio, adjusted for unrealized investment security losses, of 9.8 and 10.5 percent respectively, each of which is in excess of regulatory guidelines for a “well-capitalized” institution as of February 28, 2023;
- Our liquidity position as of the close of business March 10, 2023 is:
- Cash held on balance sheet of
$140 million - Unpledged marketable investment securities of
$175 million - Loans held for sale of
$30 million - Brokered CD authorization of
$541 million based on a self-established internal policy of20% of total deposits with$165 million of remaining issuance capacity - Fully collateralized credit facility from the Federal Home Loan Bank of Cincinnati of
$518 million with$487 million of remaining borrowing capacity - Fully collateralized credit facility from the Federal Reserve Bank of Atlanta of
$316 million with$316 million of remaining borrowing capacity;
- Cash held on balance sheet of
- Asset quality remains excellent;
- CapStar has Bauer Financial’s highest 5-star rating, indicating the Company is among the strongest banks in the nation.
For more information on CapStar’s financial position, review its Form 10-K for the period ended December 31, 2022 which can be found here.
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, 2022, on a consolidated basis, CapStar had total assets of
For more information, contact:
Michael J. Fowler
Chief Financial Officer
(615) 732-7404
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