 Strong Pre-tax Pre-provision Income led by Record Mortgage ResultsNASHVILLE, Tenn., July 23, 2020 GLOBE NEWSWIRE -- CapStar Financial Holdings, Inc. CapStar NASDAQ:CSTR today reported second quarter net income of 6.2 million and pre-tax pre-provision income of 9.6 million. Diluted earnings per share were 0.34, an increase of 0.03 from the second quarter of 2019. Excluding merger-related charges, diluted operating1 earnings per share were 0.36, a decline of 0.02 from the second quarter of 2019. Return on average assets and return on average equity for the second quarter of 2020 were 1.06 and 8.83, respectively. On an operating basis, return on average assets was 1.11 and return on average tangible common equity was 11.02. Net income for the quarter included provision for loan losses of 1.6 million, severance expense of 1.4 million, and merger related expenses of 448,000. I am proud of the CapStar team for their remarkable dedication during an extremely challenging operating environment, said Timothy K. Schools, CapStars president and CEO. In keeping with our vision, mission and values, we have been unwavering in our commitment to support our employees, clients and communities through the public health crisis. Our non-financial center work force mobilized to working 100 remotely and continues to provide outstanding service. Importantly, we prioritized client assistance by offering loan deferrals and took a leadership position in facilitating PPP loans to protect all local business both clients and non-clients as they navigate the challenges presented by COVID-19. Our inclusive and response-driven approach is supporting our communities and presents the prospect for many new and expanded relationships.In the second quarter, we delivered solid financial results with strong pre-tax pre-provision revenue led by our mortgage and Tri-Net divisions, continued Schools. During the quarter, we saw a significant rise in both loans related to PPP and in deposits which will bring short-term compression to our net interest margin and we continued to actively monitor our portfolio to identify potential weaknesses. On July 1, we completed our merger with The Bank of Waynesboro and The First National Bank of Manchester, creating an approximately 3 billion financial institution which will enhance our funding profile, diversify our loan portfolio, expand our geographic reach, and improve our net interest margin, efficiency ratio, and return on assets.Soundness Allowance for loan losses to total loans was 1.32 at June 30, 2020 compared to 0.90 at June 30, 2019. Annualized net charge-offs to average loans were 0.18 for the three months ended June 30, 2020 compared to 0.02 for the same period in 2019. Non-performing assets to total loans and OREO were 0.20 at June 30, 2020 compared to 0.16 at June 30, 2019. The leverage ratio was 10.08 at June 30, 2020 compared to 11.01 at June 30, 2019. The total risk based capital ratio was 16.76 at June 30, 2020 compared to 13.29 at June 30, 2019. Profitability Operating annualized return on average assets for the three months ended June 30, 2020 was 1.11 compared to 1.40 for the same period in 2019. Operating annualized return on average tangible equity for the three months ended June 30, 2020 was 11.02 compared to 13.05 for the same period in 2019. Net interest margin for the three months ended June 30, 2020 was 3.23 compared to 3.68 for the same period in 2019; approximately 17 bps of the decline is attributed to the impact of PPP loans and an increase in cash due to significant deposit growth during the quarter. The operating efficiency ratio for the three months ended June 30, 2020 was 64.87 compared to 61.39 for the same period in 2019. Operating annualized pre-tax pre-provision income to average assets for the three months ended June 30, 2020 was 1.71 compared to 1.86 for the same period in 2019.Growth Average deposits for the quarter ended June 30, 2020 increased 21.1 to 2.03 billion, compared to 1.68 billion for the same period in 2019. Average gross loans for the quarter ended June 30, 2020 increased 6.3 to 1.56 billion, compared to 1.47 billion for the same period in 2019. Pre-tax pre-provision earnings for the quarter ended June 30, 2020 increased 26.3 to 9.6 million, compared to 7.6 million for the quarter ended June 30, 2019. Tangible book value per share for the quarter ended June 30, 2020 increased 9.7 to 13.02, compared to 11.87 for the quarter ended June 30, 2019.DividendOn July 23, 2020, the board of directors of CapStar approved a quarterly dividend of 0.05 per common share that will be paid on August 27, 2020 to shareholders of record of CapStars common stock as of the close of business on August 13, 2020.Conference Call and Webcast InformationCapStar will host a conference call and webcast at 9:00 a.m. Central Time on Friday, July 24, 2020. During the call, management will review the second quarter results and operational highlights. Interested parties may listen to the call by dialing 844 412-1002. The conference ID number is 4376815. A simultaneous webcast may be accessed on CapStars website at ir.capstarbank.com by clicking on News Events. An archived version of the webcast will be available in the same location shortly after the live call has ended.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 June 30, 2020, on a consolidated basis, CapStar had total assets of 2.45 billion, gross loans of 1.59 billion, total deposits of 2.10 billion, and shareholders equity of 282.0 million. Visit for more information.FORWARD-LOOKING STATEMENTS This release contains forward-looking statements, as defined by federal securities laws, including statements about CapStar and its financial outlook and business environment. These statements are based on current expectations and are provided to assist in the understanding of our operations and future financial performance. Our operations and such performance involves risks and uncertainties, including but in no way limited to the effect of the COVID-19 pandemic, that may cause actual results to differ materially from those expressed or implied in any such statements. For a discussion of some of the risks and other factors that may cause such forward-looking statements to differ materially from actual results, please refer to CapStars filings with the Securities and Exchange Commission, including its 2019 Annual Report on Form 10-K under the sections entitled Forward-Looking Statements and Item 1A Risk Factors. Forward-looking statements speak only as of the date they are made, and except as otherwise required by applicable law, we undertake no obligation to update or revise forward-looking statements. NON-GAAP MEASURES This release includes financial information determined by methods other than in accordance with generally accepted accounting principles GAAP. This financial information includes certain operating performance measures, which exclude merger-related and other charges that are not considered part of recurring operations. Such measures include: Efficiency ratio operating, Expenses operating, Earnings per share operating, Diluted earnings per share operating, Tangible book value per share, Return on common equity operating, Return on tangible common equity operating, Return on assets operating, and Tangible common equity to tangible assets. Management has included these non-GAAP measures because it believes these measures may provide useful supplemental information for evaluating CapStars underlying performance trends. Further, management uses these measures in managing and evaluating CapStars business and intends to refer to them in discussions about our operations and performance. Operating performance measures should be viewed in addition to, and not as an alternative to or substitute for, measures determined in accordance with GAAP, and are not necessarily comparable to non-GAAP measures that may be presented by other companies. To the extent applicable, reconciliations of these non-GAAP measures to the most directly comparable GAAP measures can be found in the Non-GAAP Reconciliation Tables included in the exhibits to this presentation. CAPSTAR FINANCIAL HOLDINGS, INC. 