Regulatory Capital Requirements

3 Months Ended

Mar. 31, 2019

Banking And Thrift [Abstract]

Regulatory Capital Requirements

NOTE 11 – REGULATORY CAPITAL REQUIREMENTS

The Company and the Bank are subject to regulatory capital requirements administered by the Federal Reserve and the Bank is also subject to the regulatory capital requirements of the Tennessee Department of Financial Institutions. Failure to meet capital requirements can initiate certain mandatory – and possibly additional discretionary – actions by regulators that could, in that event, have a material adverse effect on the institutions’ financial statements. The relevant regulations require the Company and the Bank to meet specific capital adequacy guidelines that involve quantitative measures of their assets, liabilities and certain off-balance-sheet items as calculated under regulatory accounting principles. The capital classifications of the Company and the Bank are also subject to qualitative judgments by their regulators about components, risk weightings, and other factors. Those qualitative judgments could also affect the capital status of the Company and the Bank and the amount of dividends the Company and the Bank may distribute. The final rules implementing the Basel Committee on Banking Supervision’s capital guidelines for U.S. banks (Basel III rules) became effective for the Bank on January 1, 2015 with full compliance with all of the requirements being phased in over a multi-year schedule, and fully phased in by January 1, 2019. The net unrealized gain or loss on available for sale securities is not included in computing regulatory capital. Management believes as of March 31, 2019, the Company and the Bank met all regulatory capital adequacy requirements to which they are subject.

The Company’s and the Bank’s capital amounts and ratios as of March 31, 2019 and December 31, 2018 are presented in the following table (dollars in thousands).

	Actual					Minimum capital requirement (1)					Minimum to be well-capitalized (2)
	Amount		Ratio			Amount		Ratio			Amount		Ratio
At March 31, 2019:
Total capital to risk-weighted assets:
CapStar Financial Holdings, Inc.	$	226,159		12.64	%	$	143,152		8.00	%	N/A		N/A
CapStar Bank		207,479		11.60			143,091		8.00		$	178,864		10.00
Tier I capital to risk-weighted assets:
CapStar Financial Holdings, Inc.		213,021		11.90			107,364		6.00		N/A		N/A
CapStar Bank		194,341		10.87			107,318		6.00			143,091		8.00
Common equity Tier 1 capital to risk weighted    assets:
CapStar Financial Holdings, Inc.		204,021		11.40			80,523		4.50		N/A		N/A
CapStar Bank		177,841		9.94			80,489		4.50			116,261		6.50
Tier I capital to average assets:
CapStar Financial Holdings, Inc.		213,021		10.97			77,671		4.00		N/A		N/A
CapStar Bank		194,341		10.01			77,642		4.00			97,053		5.00
At December 31, 2018:
Total capital to risk-weighted assets:
CapStar Financial Holdings, Inc.	$	222,030		12.84	%	$	138,336		8.00	%	N/A		N/A
CapStar Bank		201,972		11.68			138,294		8.00		$	172,868		10.00
Tier I capital to risk-weighted assets:
CapStar Financial Holdings, Inc.		209,738		12.13			103,752		6.00		N/A		N/A
CapStar Bank		189,680		10.97			103,721		6.00			138,294		8.00
Common equity Tier 1 capital to risk weighted    assets:
CapStar Financial Holdings, Inc.		200,738		11.61			77,814		4.50		N/A		N/A
CapStar Bank		173,180		10.02			77,791		4.50			112,364		6.50
Tier I capital to average assets:
CapStar Financial Holdings, Inc.		209,738		11.06			75,867		4.00		N/A		N/A
CapStar Bank		189,680		10.01			75,828		4.00			94,785		5.00

(1) For the calendar year 2019, the Company must maintain a capital conservation buffer of Tier 1 common equity capital in excess of minimum risk-based capital ratios by at least 2.5% to avoid limits on capital distributions and certain discretionary bonus payments to executive officers and similar employees.

(2) For the Company to be well-capitalized, the Bank must be well-capitalized and the Company must not be subject to any written agreement, order, capital directive, or prompt corrective action directive issued by the Federal Reserve to meet and maintain a specific capital level for any capital measure.