CapStar Financial Holdings (CSTR) has reported 39.87 percent jump in profit for the quarter ended Dec. 31, 2016. The company has earned $2.93 million, or $0.23 a share in the quarter, compared with $2.09 million, or $0.20 a share for the same period last year.     

Revenue during the quarter grew 25.55 percent to $13.06 million from $10.41 million in the previous year period. Net interest income for the quarter rose 15.19 percent over the prior year period to $10.18 million. Non-interest income for the quarter rose 54 percent over the last year period to $2.95 million.

CapStar Financial Holdings has made provision of $0.07 million for loan losses during the quarter, down 80.03 percent from $0.35 million in the same period last year.

Net interest margin contracted 5 basis points to 3.17 percent in the quarter from 3.22 percent in the last year period. Efficiency ratio for the quarter improved to 65.80 percent from 68.10 percent in the previous year period. A decline in efficiency ratio indicates a rise in profitability.

"CapStar experienced an exciting year in 2016 with the completion of our initial public offering in September," said Claire W. Tucker, president and chief executive officer of CapStar "Our team of experienced bankers did an excellent job delivering sound, profitable growth as evidenced by 19% growth in loans and leases and 38% growth in demand and NOW deposits. In addition, 2016 was a record year for net income, excluding the reversal of our valuation allowance of our deferred tax asset in 2012."

Deposits stood at $1,128.72 million as on Dec. 31, 2016, up 8.69 percent compared with $1,038.46 million on Dec. 31, 2015.

Noninterest-bearing deposit liabilities were $197.79 million or 17.52 percent of total deposits on Dec. 31, 2016, compared with $190.58 million or 18.35 percent of total deposits on Dec. 31, 2015.

Investments stood at $229.22 million as on Dec. 31, 2016, up 5.89 percent or $12.74 million from year-ago. Shareholders equity was at $139.21 million as on Dec. 31, 2016.

Return on average assets moved up 15 basis points to 0.88 percent in the quarter from 0.73 percent in the last year period. At the same time, return on average equity increased 74 basis points to 8.35 percent in the quarter from 7.61 percent in the last year period.

Nonperforming assets moved up 24.59 percent or $0.71 million to $3.62 million on Dec. 31, 2016 from $2.90 million on Dec. 31, 2015. Meanwhile, nonperforming assets to total assets was 0.27 percent in the quarter, up from 0.24 percent in the last year period.

Book value per share was $11.62 for the quarter, up 8.19 percent or $0.88 compared to $10.74 for the same period last year.