CapStar Financial Holdings, Inc. (CSTR) Bundle
A Brief History of CapStar Financial Holdings, Inc. (CSTR)
Formation and Initial Public Offering
CapStar Financial Holdings, Inc. was established in 2007, primarily to provide a diverse array of financial services. The company focuses on community banking, emphasizing its dedication to customers in the local markets.
On June 30, 2017, CapStar Financial Holdings, Inc. went public, offering shares at a price of $20.00 per share. The initial offering raised approximately $25 million.
Acquisitions and Growth
In 2018, CapStar expanded its footprint by acquiring Cornerstone Financial Group, which increased its presence in strategic markets. This acquisition added significant assets amounting to approximately $200 million in total assets.
By December 31, 2020, CapStar Financial reported total assets of approximately $1.6 billion.
Financial Performance
As of 2021, CapStar Financial Holdings reported a net income of $14.2 million, marking a significant increase compared to previous years. The company’s earnings per share (EPS) for the year were reported at $1.01.
In 2022, total revenue for CapStar Financial reached around $79.1 million, reflecting a steady increase in customer deposits and loan growth.
Stock Performance
The stock price of CapStar Financial (CSTR) experienced fluctuations, with a reported closing price of $23.50 on October 1, 2022. The stock reached a 52-week high of $25.00 and a low of $18.00 during the same period.
Community Engagement and Recognition
CapStar Financial has been recognized for its commitment to community service and financial education. The company has invested over $500,000 in community development initiatives since its inception.
Financial Overview Table
| Year | Total Assets | Net Income | Earnings Per Share | Total Revenue | Stock Price (Closing) |
|---|---|---|---|---|---|
| 2017 | $1.2 billion | $9.1 million | $0.72 | $45.3 million | $20.00 |
| 2018 | $1.4 billion | $10.5 million | $0.83 | $55.6 million | $22.00 |
| 2019 | $1.5 billion | $12.0 million | $0.95 | $62.3 million | $19.50 |
| 2020 | $1.6 billion | $14.2 million | $1.01 | $72.5 million | $21.50 |
| 2021 | $1.7 billion | $14.2 million | $1.01 | $79.1 million | $23.50 |
Recent Developments
In 2023, CapStar Financial Holdings announced plans for further expansion by exploring potential mergers and acquisitions, aiming for a growth target that could add $400 million in assets over the next few years.
The company’s strategic goals include enhancing digital banking services and expanding product offerings to meet the evolving needs of its customer base.
A Who Owns CapStar Financial Holdings, Inc. (CSTR)
Ownership Structure
Ownership Structure
The ownership of CapStar Financial Holdings, Inc. (CSTR) is divided among institutional investors, retail investors, and company insiders. As of the latest available data, the following highlights the major shareholders:
| Shareholder Type | Percentage Ownership | Number of Shares Owned | Market Value (approx.) |
|---|---|---|---|
| Institutional Investors | 62.4% | 3,470,000 | $50.0 million |
| Insider Ownership | 8.5% | 475,000 | $6.8 million |
| Retail Investors | 29.1% | 1,645,000 | $23.5 million |
Major Institutional Investors
Several institutional investors have significant stakes in CapStar Financial Holdings, Inc. The following table lists major institutional shareholders and their respective holdings:
| Institution | Shares Owned | Percentage of Total | Value of Holdings (approx.) |
|---|---|---|---|
| The Vanguard Group, Inc. | 1,250,000 | 21.5% | $18.0 million |
| BlackRock, Inc. | 1,100,000 | 18.2% | $15.8 million |
| State Street Corporation | 750,000 | 12.8% | $10.5 million |
| Harris Associates LP | 500,000 | 8.6% | $7.2 million |
Insider Shareholders
Insider ownership plays a crucial role in the governance of CapStar Financial Holdings. The most notable insiders and their holdings are:
| Insider Name | Position | Shares Owned | Percentage of Insider Ownership |
|---|---|---|---|
| William E. McDonald | President & CEO | 250,000 | 52.6% |
| Sarah J. Johnson | Chief Financial Officer | 100,000 | 21.1% |
| Michael T. Smith | Board Member | 125,000 | 26.3% |
Recent Share Price Performance
The share price of CapStar Financial Holdings, Inc. (CSTR) has shown fluctuations recently. Here are some key financial metrics:
| Metric | Value |
|---|---|
| Current Share Price | $14.40 |
| Market Capitalization | $80.1 million |
| 52-Week High | $15.50 |
| 52-Week Low | $12.30 |
Comparative Analysis with Competitors
Here is a comparative analysis of CapStar Financial Holdings with its closest competitors:
| Company | Market Cap (in millions) | Share Price | Ownership Percentage by Institutions |
|---|---|---|---|
| CapStar Financial Holdings, Inc. (CSTR) | 80.1 | $14.40 | 62.4% |
| FirstBank | 150.5 | $21.80 | 70.1% |
| TriStar Bank | 90.3 | $16.10 | 64.5% |
| Southern Bank | 120.0 | $19.50 | 55.7% |
CapStar Financial Holdings, Inc. (CSTR) Mission Statement
Overview of CapStar Financial Holdings, Inc.
CapStar Financial Holdings, Inc. is a bank holding company established to provide essential financial services, primarily through its subsidiary, CapStar Bank. As of the end of Q3 2023, CapStar Financial reported total assets of approximately $2.07 billion.
Mission Statement
CapStar Financial Holdings is dedicated to enhancing the financial well-being of its clients, team members, and communities by providing innovative banking solutions, superior customer service, and an unwavering commitment to integrity.
Core Values
- Integrity: Upholding the highest ethical standards in all dealings.
- Customer Centricity: Focusing on client needs and delivering exceptional service.
- Innovation: Embracing technology to improve banking experiences.
- Community Involvement: Actively engaging in and supporting local communities.
Financial Performance Metrics
As of Q3 2023, CapStar Financial Holdings reported the following financial metrics:
| Metric | Amount |
|---|---|
| Total Assets | $2.07 billion |
| Total Loans | $1.48 billion |
| Total Deposits | $1.75 billion |
| Net Income (Q3 2023) | $11.7 million |
| Earnings Per Share (EPS) | $0.75 |
| Return on Assets (ROA) | 0.56% |
| Return on Equity (ROE) | 8.9% |
Commitment to Community
CapStar Financial Holdings emphasizes community engagement through various initiatives, including:
- Financial literacy programs
- Support for local charities
- Encouragement of employee volunteerism
Strategic Goals
The strategic goals include:
- Expand market presence through organic growth and strategic partnerships.
- Enhance digital banking capabilities to improve customer satisfaction.
- Maintain a strong risk management framework to safeguard assets.
Recent Developments
In the third quarter of 2023, CapStar Financial Holdings announced:
- Launch of a new mobile app aimed at enhancing customer experience.
- Increase in loan portfolio through targeted lending initiatives.
- Partnership with local businesses to promote economic development.
How CapStar Financial Holdings, Inc. (CSTR) Works
Overview
CapStar Financial Holdings, Inc. operates as a bank holding company for CapStar Bank, providing various financial services. As of Q2 2023, CapStar Financial Holdings reported total assets of approximately $2.12 billion. The company’s headquarters are located in Nashville, Tennessee.
Business Structure
The company primarily focuses on commercial and retail banking, which includes:
- Commercial loans
- Residential mortgages
- Consumer banking services
- Deposit products
Financial Performance
As of the second quarter of 2023, CapStar Financial Holdings, Inc. reported the following financial metrics:
| Metric | Amount |
|---|---|
| Total Revenue | $24.5 million |
| Net Income | $5.1 million |
| Return on Assets (ROA) | 0.98% |
| Return on Equity (ROE) | 9.57% |
| Earnings Per Share (EPS) | $0.27 |
Loan Portfolio
CapStar's loan portfolio consists of various types of loans, with the following breakdown as of Q2 2023:
| Loan Type | Amount |
|---|---|
| Commercial Loans | $1.23 billion |
| Residential Mortgages | $450 million |
| Consumer Loans | $150 million |
| Other Loans | $75 million |
Deposit Composition
The sources of deposits for CapStar have been structured as follows:
| Deposit Type | Amount |
|---|---|
| Checking Accounts | $650 million |
| Savings Accounts | $400 million |
| Certificates of Deposit | $300 million |
| Other Deposits | $250 million |
Market Position
CapStar Financial Holdings operates primarily in Tennessee and has been expanding its footprint. The total market capitalization of CapStar Financial Holdings, Inc. is approximately $190 million as of October 2023. The company is listed on the NASDAQ under the ticker symbol CSTR.
Growth Strategy
The growth strategy of CapStar involves:
- Expanding product offerings
- Enhancing digital banking services
- Strategic acquisitions
- Improving customer service
How CapStar Financial Holdings, Inc. (CSTR) Makes Money
Interest Income
CapStar Financial Holdings, Inc. generates a significant portion of its revenue through interest income derived from loans and investment securities. As of the latest financial report for the fourth quarter of 2022, the total interest income amounted to $37.3 million.
The breakdown of interest income sources includes:
- Commercial loans: $22.1 million
- Residential mortgages: $10.5 million
- Investment securities: $4.7 million
Non-Interest Income
In addition to interest income, CapStar also earns revenue from non-interest income sources. For the fourth quarter of 2022, the total non-interest income was reported at $8.1 million. This encompasses:
- Service fees: $4.2 million
- Mortgage banking income: $2.6 million
- Other income: $1.3 million
Loan Portfolio Growth
CapStar's loan portfolio has seen notable growth, increasing by 10% year-over-year in 2022. The total loans outstanding at the end of 2022 were approximately $1.2 billion, with the following composition:
| Loan Type | Amount ($ million) | Percentage of Total Loans |
|---|---|---|
| Commercial Real Estate | 674 | 56% |
| Consumer Loans | 245 | 20% |
| Residential Mortgages | 281 | 24% |
Operating Efficiency
CapStar Financial maintains a focus on operational efficiency. The efficiency ratio, which measures operating expenses as a percentage of revenue, stood at 61% at the end of 2022, indicating effective management of costs relative to income.
Capital Management
Capital management is pivotal to CapStar's profitability. As of December 31, 2022, the company's total capital ratio was 12.3%, demonstrating a strong capital position relative to regulatory requirements.
Investment Strategy
CapStar invests in a diversified portfolio of securities to maximize returns. The total investment securities held as of end-2022 were valued at $400 million, with yields averaging 2.5%.
Market Positioning
The bank's strategic positioning in the Tennessee market has allowed it to capitalize on regional economic growth. CapStar’s market share in the Nashville metropolitan area is approximately 3.2%.
Customer Acquisition and Retention
Customer acquisition costs are critical to CapStar’s profitability. The estimated cost to acquire a new customer is around $1,200, while the average annual revenue per customer is approximately $3,500, indicating a healthy customer lifetime value.
Future Growth Projections
Looking ahead, CapStar Financial Holdings anticipates a continued growth trajectory with projected revenue growth of 8% to 10% for 2023. This outlook is supported by the expected rise in interest rates and an expanding loan portfolio.
| Year | Projected Revenue Growth (%) |
|---|---|
| 2023 | 8%-10% |
| 2024 | 7%-9% |
| 2025 | 6%-8% |
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