CapStar Issues Updated Financial Figures

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 $3.1 billion in total assets, today reported updated unaudited financial figures and reiterated its strong financial position and well-diversified business mix in the wake of recent industry developments.

“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 of 20% 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;
• 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 $3.1 billion, total loans of $2.3 billion, total deposits of $2.7 billion, and shareholders’ equity of $354.2 million. Visit www.capstarbank.com for more information.

For more information, contact:
Michael J. Fowler
Chief Financial Officer
(615) 732-7404