CapStar Financial reports Q3 EPS 43c, consensus 36c

Reports Q3 revenue $26.6M, consensus $29M. Tangible book value per share of common stock was $14.50 as of September 30, 2023 compared to $14.47 and $13.72 for the quarters ended June 30, 2023 and September 30, 2022. “CapStar’s Q3 results demonstrate the hard work of our associates to mitigate the impact of the rapid rise in interest rates over the past year,” said CEO Timothy Schools. “While the pace in the rise of market deposit rates slowed during the quarter, marginal deposit rates remain high relative to portfolio and new production loan yields and clients continue to migrate toward higher yielding deposit products. In response, we are focusing on controlling the controllables – liquidity, credit, expenses, and capital – each showing strength this quarter. Over the past five years, our team has repositioned CapStar enhancing its performance and long-term prospects. Today’s merger announcement will build on and further accelerate our progress. This partnership follows 16 years of meaningful work and best positions CapStar’s employees, customers, and shareholders for future success. Excitingly, our organizations share common missions and cultures, and CapStar will be a major contributor to their organization as we strengthen Old National’s recent entry into Tennessee.”