CapStar Financial Holdings, Inc. (CSTR) has reported a 79.03 percent plunge in profit for the quarter ended Mar. 31, 2017. The company has earned $0.33 million, or $0.03 a share in the quarter, compared with $1.58 million, or $0.15 a share for the same period last year.
Revenue during the quarter dropped 16.65 percent to $8.66 million from $10.39 million in the previous year period. Net interest income for the quarter rose 10.89 percent over the prior year period to $9.93 million. Non-interest income for the quarter fell 10.01 percent over the last year period to $2.13 million.
CapStar Financial Holdings, Inc. has made provision of $3.40 million for loan losses during the quarter, up 263.29 percent from $0.94 million in the same period last year.
Net interest margin contracted 6 basis points to 3.12 percent in the quarter from 3.18 percent in the last year period. Efficiency ratio for the quarter improved to 69.40 percent from 70.70 percent in the previous year period. A decline in efficiency ratio indicates a rise in profitability.
"While we are disappointed with the increase in nonperforming loans and net charge-offs during the first quarter, we are pleased with another strong quarter of loan and core deposit growth," said Claire W Tucker, president and chief executive officer of CapStar. “The changes in these credit metrics are a result of two borrowers that have been on our radar screen and classified for some time, “said Tucker. “We continue to believe the credit infrastructure and risk management systems we have in place will satisfactorily support our operations and will allow us to achieve our goal of delivering sound, profitable growth for our shareholders. We remain confident that overall asset quality remains solid, growth continues at a robust pace, and we are committed to delivering the profitability that will help us achieve our goal of 1.0% ROAA by the end of 2018."
Deposits stood at $1,158 million as on Mar. 31, 2017, up 6.60 percent compared with $1,086.34 million on Mar. 31, 2016.
Noninterest-bearing deposit liabilities were $223.45 million or 19.30 percent of total deposits on Mar. 31, 2017, compared with $220.69 million or 20.31 percent of total deposits on Mar. 31, 2016.
Investments stood at $235.37 million as on Mar. 31, 2017, up 1.12 percent or $2.61 million from year-ago. Shareholders equity was at $140.21 million as on Mar. 31, 2017.
Return on average assets moved down 44 basis points to 0.10 percent in the quarter from 0.54 percent in the last year period. At the same time, return on average equity decreased 480 basis points to 0.95 percent in the quarter from 5.75 percent in the last year period.
Nonperforming assets moved up 143.87 percent or $8.04 million to $13.62 million on Mar. 31, 2017 from $5.59 million on Mar. 31, 2016. Meanwhile, nonperforming assets to total assets was 0.99 percent in the quarter, up from 0.46 percent in the last year period.
Book value per share was $11.70 for the quarter, up 7.64 percent or $0.83 compared to $10.87 for the same period last year.
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