Income Taxes

6 Months Ended

Jun. 30, 2022

Income Tax Disclosure [Abstract]

Income Taxes

NOTE 7– INCOME TAXES

The Company’s effective tax rate for the three and six month periods ended June 30, 2022 was 19.6% compared to 19.0% and 20.4% for the three and six months ended June 30, 2021.

The effective tax rate for the three month period ended June 30, 2022 compared favorably to the statutory federal rate of 21% and Tennessee excise tax rate of 6.5% primarily due to investments in qualified municipal securities, company owned life insurance, tax benefits of CapStar Bank’s real estate investment trust subsidiary, community investment tax credits, and tax benefits associated with share-based compensation, net of the effect of certain non-deductible expenses.