8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

______________________________

FORM 8-K

CURRENT REPORT

PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

Date of Report (Date of earliest event reported): July 25, 2019

______________________________

CAPSTAR FINANCIAL HOLDINGS, INC.

(Exact name of registrant as specified in its charter)

Tennessee		001-37886		81-1527911
(State or other jurisdiction of incorporation)		(Commission File Number)		(IRS Employer Identification No.)
	1201 Demonbreun Street, Suite 700 Nashville, Tennessee		37203
	(Address of principal executive offices)		(Zip Code)

Registrant’s telephone number, including area code    (615) 732-6400

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

[  ]   Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

[  ]   Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

[  ]   Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

[  ]   Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Exchange Act:
Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock, $1.00 par value per share	CSTR	Nasdaq Global Select Market

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company [X]

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. [X]

Section 2 – Financial Information

Item 2.02.  Results of Operations and Financial Condition.

On July 25, 2019, CapStar Financial Holdings, Inc. (the “Company”) issued an earnings release announcing its financial results for the second quarter ended June 30, 2019.  A copy of the earnings release is furnished as Exhibit 99.1 to this Current Report on Form 8-K (this “Report”) and is incorporated herein by reference.

The Company will conduct a conference call at 9:00 a.m. (Central Time) on July 26, 2019 to discuss its financial results for the second quarter ended June 30, 2019.  A copy of the presentation to be used for the conference call is furnished as Exhibit 99.2 to this Report and is incorporated herein by reference.

Section 7 – Regulation FD

Item 7.01.  Regulation FD Disclosure.

The information disclosed under Item 2.02 of this Report is incorporated by reference into this Item 7.01.

Section 9 – Financial Statements and Exhibits

Item 9.01.  Financial Statements and Exhibits.

Exhibit Number	Description
99.1	Earnings release issued on July 25, 2019 by CapStar Financial Holdings, Inc.
99.2	Presentation for conference call to be conducted by CapStar Financial Holdings, Inc. on July 26, 2019.

2

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this Report to be signed on its behalf by the undersigned hereunto duly authorized.

CAPSTAR FINANCIAL HOLDINGS, INC.
By:	/s/ Robert B. Anderson
	Robert B. Anderson
	Chief Financial Officer and Chief Administrative Officer

Date: July 25, 2019

3

EX-99.1

Exhibit 99.1

EARNINGS RELEASE

CONTACT

Rob Anderson

Chief Financial Officer and Chief Administrative Officer

(615) 732-6470

CapStar Reports Fully Diluted EPS of $0.31 and Fully Diluted Operating EPS of $0.38 for 2Q2019

NASHVILLE, TN, July 25, 2019/GlobeNewswire/ -- CapStar Financial Holdings, Inc. (“CapStar”) (NASDAQ:CSTR) reported net income of $5.76 million, or $0.31 per share on a fully diluted basis, for the three months ended June 30, 2019, compared to net income of $3.51 million, or $0.27 per share on a fully diluted basis, for the three months ended June 30, 2018.  Operating⁽¹⁾ net income was $7.02 million, or $0.38 per share on a fully diluted basis, for the three months ended June 30, 2019, compared to $3.76 million, or $0.29 per share on a fully diluted basis, for the three months ended June 30, 2018.  

“Our strong second quarter results show that CapStar’s talented group of bankers continues to deliver a highly-personalized banking experience, providing creative solutions for our clients and creating long-term sustainable value for our shareholders,” said Claire W. Tucker, CapStar’s chief executive officer.  

“Since joining the company in May, I have met with associates and customers across the organization and I am excited about the opportunities in front of us,” added Timothy K. Schools, CapStar’s recently appointed president. “CapStar is well positioned to expand within our dynamic markets and our strong second quarter results demonstrate the importance of our diverse revenue streams,” continued Mr. Schools.

Soundness

• Non-performing assets as a percentage of total assets were 0.12% at June 30, 2019 compared to 0.39% at June 30, 2018.

• Annualized net charge-offs to average loans were 0.02% for the three months ended June 30, 2019 compared to 0.01% for the same period in 2018.

• The total risk based capital ratio was 13.29% at June 30, 2019 compared to 12.53% at June 30, 2018.

Profitability

Operating measures exclude merger-related expenses unrelated to CapStar’s normal operations. CapStar believes these measures are useful to investors as they exclude certain non-recurring costs resulting from acquisition activity and allow investors to more clearly see the financial results of CapStar’s operations.

• Operating annualized return on average assets for the three months ended June 30, 2019 was 1.40% compared to 1.08% for the same period in 2018.

• Operating annualized return on average tangible equity for the three months ended June 30, 2019 was 13.05% compared to 10.38% for the same period in 2018.

• The operating efficiency ratio for the three months ended June 30, 2019 was 61.39% compared to 67.38% for the same period in 2018.

• Net interest margin for the three months ended June 30, 2019 was 3.68% compared to 3.46% for the same period in 2018.

(1) For a discussion and reconciliation of the Non-GAAP operating measures that exclude merger-related costs unrelated to CapStar’s normal operations, see the section titled “Non-GAAP Disclaimer” and the Non-GAAP financial measures section of the financial statements.

“Despite a challenging macro-economic environment with a flat to inverted yield curve, we grew our operating earnings per share by 31.0% from the same period last year and our operating return on average tangible equity grew to 13.05%,” said Rob Anderson, chief financial officer and chief administrative officer of CapStar. “A tremendous quarter by our Mortgage Banking and TriNet teams boosted profitability measures and helped mitigate the decline in our margin,” continued Mr. Anderson.  

Growth

• Operating EPS on a fully diluted basis increased 31.0% to $0.38 for the quarter ended June 30, 2019, compared to $0.29 on a fully diluted basis for the same period in 2018.

• Average gross loans for the quarter ended June 30, 2019 increased 41.0% to $1.47 billion, compared to $1.04 billion for the same period in 2018.

o Excluding Day 1 loans from Athens, organic average loan growth was 7.9% year-over-year.

• Average deposits for the quarter ended June 30, 2019 increased 47.4% to $1.68 billion, compared to $1.14 billion for the same period in 2018.

o Excluding Day 1 deposits from Athens, organic average deposit growth was 11.9% year-over-year.

“Excluding Day 1 loans from Athens, organic average loan growth was 7.9% year-over-year and “in market” loan growth was 10.3% year-over-year, while our “out of market” loans declined $49 million from $124 million in the second quarter of 2018 to $75 million at June 30, 2019,” said Mr. Anderson. “In addition, our organic deposit growth was 11.9% year-over-year, excluding the Day 1 deposits acquired from Athens.”

Dividend

On July 25, 2019, the board of directors of CapStar approved a quarterly dividend of $0.05 per share that will be paid on or about August 26, 2019 to all shareholders of record of CapStar’s capital stock as of the close of business on August 12, 2019.

Conference Call and Webcast Information

CapStar will host a conference call and webcast at 9:00 a.m. Central Time on Friday July 26, 2019.  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 7628709.  A simultaneous webcast may be accessed on CapStar’s 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, 2019, on a consolidated basis, CapStar had total assets of $2.02 billion, gross loans of $1.44 billion, total deposits of $1.72 billion, and shareholders’ equity of $262.66 million.  Visit www.capstarbank.com for more information.

Forward-Looking Statements

Certain statements in this earnings release are forward-looking statements that reflect CapStar’s current views with respect to, among other things, CapStar’s assets, business, cash flows, condition (financial or otherwise), credit quality, financial performance, liquidity, short and long-term performance goals, prospects, results of operations, strategic initiatives and the timing, benefits, costs and synergies of recently completed and future acquisition, disposition and other growth

opportunities, including, without limitation, those relating to the acceptance by customers of Athens of CapStar’s products and services, the ability of CapStar to meet expectations regarding the benefits, costs, synergies, and financial and operational impact of the Athens merger, the possibility that any of the anticipated benefits, costs, synergies and financial and operational improvements of the Athens merger will not be realized or will not be realized as expected and the opportunities to enhance market share in certain markets and market acceptance of CapStar are generally in new markets. These statements are often, but not always, made through the use of words or phrases such as “may,” “should,” “could,” “predict,” “potential,” “believe,” “will likely result,” “expect,” “continue,” “will,” “anticipate,” “seek,” “aspire,” “achieve,” “estimate,” “intend,” “plan,” “project,” “projection,” “forecast,” “roadmap,” “goal,” “guidance,” “target,” “would,” and “outlook,” or the negative version of those words or other comparable words of a future or forward-looking nature. These forward-looking statements are not historical facts, and are based on current expectations, estimates and projections about CapStar’s industry, management’s beliefs and certain assumptions made by management, many of which, by their nature, are inherently uncertain and beyond CapStar’s control. The inclusion of these forward-looking statements should not be regarded as a representation by CapStar or any other person that such expectations, estimates and projections will be achieved. Accordingly, CapStar cautions you that any such forward-looking statements are not guarantees of future performance and are subject to risks, assumptions and uncertainties that are difficult to predict. Although CapStar believes that the expectations reflected in these forward-looking statements are reasonable as of the date made, actual results may prove to be materially different from the results expressed or implied by the forward-looking statements. There are or will be important factors that could cause CapStar’s actual results to differ materially from those indicated in these forward-looking statements, including, but not limited to,any factors identified in this earnings release as well as those factors that are detailed from time to time in CapStar’s periodic and current reports filed with the Securities and Exchange Commission, including those factors included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2018under the headings “Item 1A. Risk Factors” and “Cautionary Note Regarding Forward Looking Statements” and in the Company’s Quarterly Reports on Form 10-Q and Current Reports on Form 8-K.  If one or more events related to these or other risks or uncertainties materialize, or if CapStar’s underlying assumptions prove to be incorrect, actual results may differ materially from its forward-looking statements. Accordingly, you should not place undue reliance on any such forward-looking statements. Any forward-looking statement speaks only as of the date of this earnings release, and CapStar does not undertake any obligation to publicly update or review any forward-looking statement, whether as a result of new information, future developments or otherwise, except as required by law. New risks and uncertainties may emerge from time to time, and it is not possible for CapStar to predict their occurrence or how they will affect CapStar.

Non-GAAP Disclaimer

This earnings release includes the following financial measures that were prepared other than in accordance with generally accepted accounting principles in the United States (“non-GAAP financial measure”): operating net income, operating diluted net income per share, operating return on average assets, operating return on average tangible equity, tangible book value per share and operating efficiency ratio. These non-GAAP financial measures (i) provide useful information to management and investors that is supplementary to CapStar’s financial condition, results of operations and cash flows computed in accordance with GAAP, (ii) enable a more complete understanding of factors and trends affecting CapStar’s business, and (iii) allow investors to evaluate CapStar’s performance in a manner similar to management, the financial services industry, bank stock analysts and bank regulators; however, CapStar acknowledges that these non-GAAP financial measures have a number of limitations.  As such, you should not view these non-GAAP financial measures as a substitute for results determined in accordance with GAAP, and they are not necessarily comparable to non-GAAP financial measures that other companies use.  See below for a reconciliation of these non-GAAP financial measures to the most directly comparable GAAP financial measure.  

CAPSTAR FINANCIAL HOLDINGS, INC. AND SUBSIDIARY

Consolidated Statements of Income (unaudited) (dollars in thousands, except share data)

Second Quarter 2019 Earnings Release

	Three Months Ended					Six Months Ended
	June 30,					June 30,
	2019			2018		2019			2018
Interest income:
Loans, including fees	$	20,999		$	13,796	$	41,591		$	26,030
Securities:
Taxable		1,165			943		2,512			1,823
Tax-exempt		363			257		739			538
Federal funds sold		6			19		25			39
Restricted equity securities		214			128		401			257
Interest-bearing deposits in financial institutions		411			211		857			411
Total interest income		23,158			15,354		46,125			29,098
Interest expense:
Interest-bearing deposits		1,827			892		3,420			1,646
Savings and money market accounts		1,782			1,413		3,500			2,418
Time deposits		2,217			834		4,030			1,483
Federal funds purchased		—			1		4			1
Securities sold under agreements to repurchase		—			—		5			—
Federal Home Loan Bank advances		324			627		1,156			1,117
Total interest expense		6,150			3,767		12,115			6,665
Net interest income		17,008			11,587		34,010			22,433
Provision for loan losses		—			169		886			846
Net interest income after provision for loan losses		17,008			11,418		33,124			21,587
Noninterest income:
Treasury management and other deposit service charges		813			427		1,611			829
Net gain (loss) on sale of securities		(121	)		3		(108	)		3
Tri-Net fees		1,024			325		1,664			853
Mortgage banking income		3,087			1,383		4,472			2,695
Other noninterest income		2,229			627		4,128			1,474
Total noninterest income		7,032			2,765		11,767			5,854
Noninterest expense:
Salaries and employee benefits		8,563			6,340		16,995			12,598
Data processing and software		1,862			810		3,336			1,608
Professional fees		501			344		1,043			819
Occupancy		809			535		1,692			1,056
Equipment		1,026			602		1,878			1,141
Regulatory fees		272			233		546			436
Merger related expenses		1,711			335		2,305			335
Amortization of intangibles		419			10		850			20
Other operating		1,307			796		2,551			1,573
Total noninterest expense		16,470			10,005		31,196			19,586
Income before income taxes		7,570			4,178		13,695			7,855
Income tax expense		1,814			665		3,160			1,148
Net income	$	5,756		$	3,513	$	10,535		$	6,707
Per share information:
Basic net income per share of common stock	$	0.33		$	0.30	$	0.59		$	0.57
Diluted net income per share of common stock	$	0.31		$	0.27	$	0.56		$	0.52
Weighted average shares outstanding:
Basic		17,663,992			11,845,822		17,723,286			11,755,535
Diluted		18,650,706			13,067,223		18,740,322			13,021,744

This information is preliminary and based on company data available at the time of the presentation.

CAPSTAR FINANCIAL HOLDINGS, INC. AND SUBSIDIARY

Selected Quarterly Financial Data (unaudited) (dollars in thousands, except share data)

Second Quarter 2019 Earnings Release

	Five Quarter Comparison
	6/30/19			3/31/19			12/31/18			9/30/18			6/30/18
Income Statement Data:
Net interest income	$	17,008		$	17,002		$	17,716		$	11,543		$	11,587
Provision for loan losses		—			886			1,514			481			169
Net interest income after provision for loan losses		17,008			16,116			16,202			11,062			11,418
Treasury management and other deposit service charges		813			798			793			528			427
Net gain (loss) on sale of securities		(121	)		12			1			(1	)		3
Tri-Net fees		1,024			641			276			374			325
Mortgage banking income		3,087			1,385			1,324			1,634			1,383
Other noninterest income		2,229			1,899			3,993			683			627
Total noninterest income		7,032			4,735			6,387			3,218			2,765
Salaries and employee benefits		8,563			8,432			9,475			6,514			6,340
Data processing and software		1,862			1,474			1,424			803			810
Professional fees		501			543			534			255			344
Occupancy		809			883			736			544			535
Equipment		1,026			852			810			520			602
Regulatory fees		272			274			364			228			233
Merger related expenses		1,711			594			8,929			540			335
Amortization of intangibles		419			430			442			3			10
Other operating		1,307			1,243			1,118			663			796
Total noninterest expense		16,470			14,725			23,832			10,070			10,005
Net income (loss) before income tax expense		7,570			6,126			(1,243	)		4,210			4,178
Income tax (benefit) expense		1,814			1,346			(535	)		554			665
Net income (loss)	$	5,756		$	4,780		$	(708	)	$	3,656		$	3,513
Weighted average shares - basic		17,663,992			17,783,239			17,509,525			12,040,229			11,845,822
Weighted average shares - diluted		18,650,706			18,830,933			18,716,562			13,113,775			13,067,223
Net income (loss) per share, basic	$	0.33		$	0.27		$	(0.04	)	$	0.30		$	0.30
Net income (loss) per share, diluted		0.31			0.25			(0.04	)		0.28			0.27
Balance Sheet Data (at period end):
Cash and cash equivalents	$	156,085		$	120,321		$	105,443		$	52,589		$	58,222
Securities available-for-sale		194,957			233,691			243,808			187,469			183,364
Securities held-to-maturity		3,721			3,727			3,734			3,740			3,746
Loans held for sale		89,629			72,870			57,618			50,499			65,320
Total loans		1,440,617			1,467,786			1,429,794			1,073,870			1,046,525
Allowance for loan losses		(12,903	)		(12,959	)		(12,113	)		(15,218	)		(14,705	)
Total assets		2,018,421			2,035,811			1,963,883			1,416,907			1,401,181
Non-interest-bearing deposits		326,550			312,597			289,552			239,792			223,579
Interest-bearing deposits		1,396,220			1,366,205			1,280,456			886,611			921,435
Federal Home Loan Bank advances		10,000			75,000			125,000			125,000			95,000
Total liabilities		1,755,757			1,776,060			1,709,504			1,259,397			1,248,035
Shareholders' equity	$	262,664		$	259,751		$	254,379		$	157,510		$	153,146
Total shares of common stock outstanding		17,561,476			17,765,124			17,724,721			12,125,122			11,931,131
Total shares of preferred stock outstanding		878,048			878,048			878,048			878,048			878,048
Book value per share of common stock	$	14.44		$	14.11		$	13.84		$	12.25		$	12.08
Tangible book value per share of common stock*		11.87			11.55			11.25			11.74			11.56
Market value per share of common stock	$	15.15		$	14.44		$	14.73		$	16.72		$	18.53
Capital ratios:
Total risk based capital		13.29	%		12.64	%		12.84	%		12.62	%		12.53	%
Tier 1 risk based capital		12.53	%		11.90	%		12.13	%		11.49	%		11.41	%
Common equity tier 1 capital		12.01	%		11.40	%		11.61	%		10.83	%		10.73	%
Leverage		11.01	%		10.97	%		11.06	%		11.02	%		10.87	%

_____________________

*This metric is a non-GAAP financial measure.  See below for discussion and reconciliation to the most directly comparable GAAP financial measure.

This information is preliminary and based on company data available at the time of the presentation.

CAPSTAR FINANCIAL HOLDINGS, INC. AND SUBSIDIARY

Selected Quarterly Financial Data (unaudited) (dollars in thousands, except share data)

Second Quarter 2019 Earnings Release

	Five Quarter Comparison
	6/30/19			3/31/19			12/31/18			9/30/18			6/30/18
Average Balance Sheet Data:
Cash and cash equivalents	$	93,523		$	83,689		$	83,560		$	62,787		$	63,064
Investment securities		228,283			251,631			256,595			196,031			197,933
Loans held for sale		91,585			66,880			52,131			54,701			58,297
Loans		1,469,210			1,461,696			1,439,652			1,070,060			1,041,835
Assets		2,004,207			1,988,478			1,940,991			1,421,873			1,396,359
Interest bearing deposits		1,364,211			1,299,205			1,271,602			913,534			901,076
Deposits		1,678,240			1,588,317			1,579,250			1,147,274			1,138,400
Federal Home Loan Bank advances		42,088			117,278			102,304			109,728			99,121
Liabilities		1,743,010			1,731,373			1,695,181			1,265,610			1,244,824
Shareholders' equity		261,197			257,105			245,811			156,264			151,535
Performance Ratios:
Annualized return on average assets		1.15	%		0.97	%		(0.14	)%		1.02	%		1.01	%
Annualized return on average equity		8.84	%		7.54	%		(1.14	)%		9.28	%		9.30	%
Net interest margin (1)		3.68	%		3.75	%		3.89	%		3.35	%		3.46	%
Annualized Noninterest income to average assets		1.41	%		0.97	%		1.31	%		0.90	%		0.79	%
Efficiency ratio		68.51	%		67.74	%		98.88	%		68.22	%		69.71	%
Loans by Type (at period end):
Commercial and industrial	$	404,745		$	419,941		$	404,600		$	398,626		$	386,065
Commercial real estate - owner occupied		173,316			170,558			141,931			117,904			121,475
Commercial real estate - non-owner occupied		421,496			403,443			408,515			286,848			286,769
Construction and development		123,901			162,237			174,670			129,799			96,580
Consumer real estate		255,043			248,943			253,562			112,957			109,915
Consumer		26,704			26,241			25,615			8,274			9,671
Other		35,412			36,423			20,901			19,462			36,050
Asset Quality Data:
Allowance for loan losses to total loans		0.90	%		0.88	%		0.85	%		1.42	%		1.41	%
Allowance for loan losses to non-performing loans		894	%		757	%		583	%		271	%		271	%
Nonaccrual loans	$	1,443		$	1,712		$	2,078		$	5,610		$	5,419
Troubled debt restructurings		1,238			1,255			1,391			1,146			1,173
Loans - over 89 days past due and accruing		302			-			214			215			216
Total non-performing loans		1,443			1,712			2,078			5,610			5,419
OREO and repossessed assets		914			1,038			988			-			-
Total non-performing assets		2,357			2,750			3,066			5,610			5,419
Non-performing loans to total loans		0.10	%		0.12	%		0.15	%		0.52	%		0.52	%
Non-performing assets to total assets		0.12	%		0.14	%		0.16	%		0.40	%		0.39	%
Non-performing assets to total loans and OREO		0.16	%		0.19	%		0.21	%		0.52	%		0.52	%
Annualized net charge-offs (recoveries) to average loans		0.02	%		0.01	%		1.27	%		(0.01	)%		0.01	%
Net charge-offs (recoveries)	$	56		$	40		$	4,620		$	(32	)	$	27
Interest Rates and Yields:
Loans		5.44	%		5.49	%		5.49	%		5.00	%		5.04	%
Securities (1)		3.22	%		3.20	%		3.30	%		2.85	%		2.82	%
Total interest-earning assets (1)		5.00	%		5.06	%		5.02	%		4.58	%		4.58	%
Deposits		1.39	%		1.31	%		1.12	%		1.22	%		1.11	%
Borrowings and repurchase agreements		3.09	%		2.85	%		2.76	%		2.53	%		2.53	%
Total interest-bearing liabilities		1.75	%		1.71	%		1.50	%		1.64	%		1.51	%
Other Information:
Full-time equivalent employees		290			289			286			185			183

_____________________

This information is preliminary and based on company data available at the time of the presentation.

(1)  Net Interest Margin, Securities yields, and Total interest-earning asset yields are calculated on a tax-equivalent basis

CAPSTAR FINANCIAL HOLDINGS, INC. AND SUBSIDIARY

Analysis of Interest Income and Expense, Rates and Yields (unaudited) (dollars in thousands)

Second Quarter 2019 Earnings Release

	For the Three Months Ended June 30,
	2019							2018
	Average Outstanding Balance		Interest Income/ Expense		Average Yield/ Rate			Average Outstanding Balance		Interest Income/ Expense		Average Yield/ Rate
Interest-Earning Assets
Loans (1)	$	1,469,210	$	19,931		5.44	%	$	1,041,835	$	13,090		5.04	%
Loans held for sale		91,585		1,068		4.68	%		58,297		706		4.86	%
Securities:
Taxable investment securities (2)		175,742		1,379		3.14	%		155,552		1,071		2.76	%
Investment securities exempt from    federal income tax (3)		52,541		363		3.50	%		42,381		257		3.07	%
Total securities		228,283		1,742		3.22	%		197,933		1,328		2.82	%
Cash balances in other banks		75,485		411		2.18	%		50,335		211		1.68	%
Funds sold		767		6		2.96	%		2,898		19		2.57	%
Total interest-earning assets		1,865,330		23,158		5.00	%		1,351,298		15,354		4.58	%
Noninterest-earning assets		138,877							45,061
Total assets	$	2,004,207						$	1,396,359
Interest-Bearing Liabilities
Interest-bearing deposits:
Interest-bearing transaction accounts	$	467,326		1,827		1.57	%	$	279,705		892		1.28	%
Savings and money market deposits		479,012		1,782		1.49	%		428,330		1,413		1.32	%
Time deposits		417,873		2,217		2.13	%		193,041		834		1.73	%
Total interest-bearing deposits		1,364,211		5,826		1.71	%		901,076		3,139		1.40	%
Borrowings and repurchase agreements		42,117		324		3.09	%		99,286		628		2.53	%
Total interest-bearing liabilities		1,406,328		6,150		1.75	%		1,000,362		3,767		1.51	%
Noninterest-bearing deposits		314,029							237,324
Total funding sources		1,720,357							1,237,686
Noninterest-bearing liabilities		22,653							7,138
Shareholders’ equity		261,197							151,535
Total liabilities and shareholders’ equity	$	2,004,207						$	1,396,359
Net interest spread (4)						3.25	%						3.07	%
Net interest income/margin (5)			$	17,008		3.68	%			$	11,587		3.46	%

(1) Average loan balances include nonaccrual loans.  Interest income on loans includes amortization of deferred loan fees, net of deferred loan costs.

(2) Taxable investment securities include restricted equity securities.

(3) Yields on tax exempt securities, total securities, and total interest-earning assets are shown on a tax equivalent basis.

(4) Net interest spread is the average yield on total average interest-earning assets minus the average rate on total average interest-bearing liabilities.

(5) Net interest margin is annualized net interest income calculated on a tax equivalent basis divided by total average interest-earning assets for the period.

This information is preliminary and based on company data available at the time of the presentation.

CAPSTAR FINANCIAL HOLDINGS, INC. AND SUBSIDIARY

Non-GAAP Financial Measures (unaudited) (dollars in thousands except share data)

Second Quarter 2019 Earnings Release

	Three Months Ended
	June 30, 2019			March 31, 2019			December 31, 2018			September 30, 2018			June 30, 2018
Operating net income:
Net income (loss)	$	5,756		$	4,780		$	(708	)	$	3,656		$	3,513
Add:  merger related expenses		1,711			594			8,929			540			335
Less: income tax impact of merger related expenses		(447	)		(155	)		(1,985	)		(141	)		(88	)
Operating net income	$	7,020		$	5,219		$	6,236		$	4,055		$	3,760
Operating diluted net income per    share of common stock:
Operating net income	$	7,020		$	5,219		$	6,236		$	4,055		$	3,760
Weighted average shares - diluted		18,650,706			18,830,933			18,716,562			13,113,775			13,067,223
Operating diluted net income    per share of common stock	$	0.38		$	0.28		$	0.33		$	0.31		$	0.29
Operating annualized return on average assets:
Operating net income	$	7,020		$	5,219		$	6,236		$	4,055		$	3,760
Average assets	$	2,004,207		$	1,988,478		$	1,940,991		$	1,421,873		$	1,396,359
Operating annualized return on    average assets		1.40	%		1.06	%		1.27	%		1.13	%		1.08	%
Operating annualized return on    average tangible equity:
Average total shareholders' equity	$	261,197		$	257,105		$	245,811		$	156,264		$	151,535
Less: average intangible assets		(45,456	)		(45,890	)		(45,687	)		(6,220	)		(6,228	)
Average tangible equity		215,741			211,215			200,124			150,044			145,307
Operating net income	$	7,020		$	5,219		$	6,236		$	4,055		$	3,760
Operating annualized return on    average tangible equity		13.05	%		10.02	%		12.36	%		10.72	%		10.38	%
Operating efficiency ratio:
Total noninterest expense	$	16,470		$	14,725		$	23,832		$	10,070		$	10,005
Less:  merger related expenses		(1,711	)		(594	)		(8,929	)		(540	)		(335	)
Total operating noninterest expense		14,759			14,131			14,903			9,530			9,670
Net interest income		17,008			17,002			17,716			11,543			11,587
Total noninterest income		7,032			4,735			6,387			3,218			2,765
Total revenues	$	24,040		$	21,737		$	24,103		$	14,761		$	14,352
Operating efficiency ratio:		61.39	%		65.01	%		61.83	%		64.56	%		67.38	%
	June 30, 2019			March 31, 2019			December 31, 2018			September 30, 2018			June 30, 2018
Tangible Equity:
Total shareholders' equity	$	262,664		$	259,751		$	254,379		$	157,510		$	153,146
Less: intangible assets		(45,199	)		(45,618	)		(46,048	)		(6,219	)		(6,222	)
Tangible equity	$	217,465		$	214,133		$	208,331		$	151,291		$	146,924
Tangible Common Equity:
Tangible equity	$	217,465		$	214,133		$	208,331		$	151,291		$	146,924
Less: preferred equity		(9,000	)		(9,000	)		(9,000	)		(9,000	)		(9,000	)
Tangible common equity	$	208,465		$	205,133		$	199,331		$	142,291		$	137,924
Tangible Book Value per Share of Common Stock:
Tangible common equity	$	208,465		$	205,133		$	199,331		$	142,291		$	137,924
Total shares of common stock outstanding		17,561,476			17,765,124			17,724,721			12,125,122			11,931,131
Tangible book value per share of common stock	$	11.87		$	11.55		$	11.25		$	11.74		$	11.56

CAPSTAR FINANCIAL HOLDINGS, INC. AND SUBSIDIARY

Non-GAAP Financial Measures (unaudited) (dollars in thousands except share data)

Second Quarter 2019 Earnings Release

	Six Months Ended
	June 30, 2019			June 30, 2018
Operating net income:
Net income	$	10,535		$	6,707
Add:  merger related expenses		2,305			335
Less: income tax impact of merger related expenses		(603	)		(88	)
Operating net income	$	12,237		$	6,954
Operating diluted net income per    share of common stock:
Operating net income	$	12,237		$	6,954
Weighted average shares - diluted		18,740,322			13,021,744
Operating diluted net income    per share of common stock	$	0.65		$	0.53
Operating annualized return on average assets:
Operating net income	$	12,237		$	6,954
Average assets	$	1,996,386		$	1,373,869
Operating annualized return on    average assets		1.24	%		1.02	%
Operating annualized return on    average tangible equity:
Average total shareholders' equity	$	259,162		$	149,914
Less: average intangible assets		(45,672	)		(6,233	)
Average tangible equity		213,490			143,681
Operating net income	$	12,237		$	6,954
Operating annualized return on    average tangible equity		11.56	%		9.76	%
Operating efficiency ratio:
Total noninterest expense	$	31,196		$	19,586
Less:  merger related expenses		(2,305	)		(335	)
Total operating noninterest expense		28,891			19,251
Net interest income		34,010			22,433
Total noninterest income		11,767			5,854
Total revenues	$	45,777		$	28,287
Operating efficiency ratio:		63.11	%		68.06	%

EX-99.2

Second Quarter 2019 Earnings Call July 26, 2019 Exhibit 99.2

Terminology The terms “we,” “our,” “us,” “the Company,” “CSTR” and “CapStar” that appear in this presentation refer to CapStar Financial Holdings, Inc. and its wholly owned subsidiary, CapStar Bank. The terms “CapStar Bank,” “the Bank” and “our Bank” that appear in this presentation refer to CapStar Bank. Contents of Presentation Except as is otherwise expressly stated in this presentation, the contents of this presentation are presented as of the date on the front cover of this presentation. Market Data Market data used in this presentation has been obtained from government and independent industry sources and publications available to the public, sometimes with a subscription fee, as well as from research reports prepared for other purposes. Industry publications and surveys and forecasts generally state that the information contained therein has been obtained from sources believed to be reliable. CSTR did not commission the preparation of any of the sources or publications referred to in this presentation. CSTR has not independently verified the data obtained from these sources, and, although CSTR believes such data to be reliable as of the dates presented, it could prove to be inaccurate. Forward-looking information obtained from these sources is subject to the same qualifications and the additional uncertainties regarding the other forward-looking statements in this presentation. Non-GAAP Disclaimer This presentation includes the following financial measures that have been prepared other than in accordance with generally accepted accounting principles in the United States (“non-GAAP financial measures”): pre-tax, pre-provision net income, pre-tax, pre-provision return on average assets, tangible equity, tangible common equity, tangible assets, return on average tangible equity, return on average tangible common equity, book value per share (as adjusted), tangible book value per share (as reported and as adjusted), tangible equity to tangible assets, tangible common equity to tangible assets and adjusted shares outstanding at the end of the period. CSTR non-GAAP financial measures (i) provide useful information to management and investors that is supplementary to its financial condition, results of operations and cash flows computed in accordance with GAAP, (ii) enable a more complete understanding of factors and trends affecting CSTR’s business, and (iii) allow investors to evaluate CSTR’s performance in a manner similar to management, the financial services industry, bank stock analysts and bank regulators; however, CSTR acknowledges that its non-GAAP financial measures have a number of limitations. As such, you should not view these disclosures as a substitute for results determined in accordance with GAAP, and they are not necessarily comparable to non-GAAP financial measures that other companies use. See the Appendix to this presentation for a reconciliation of non-GAAP financial measures to the most directly comparable GAAP financial measures. Disclaimers

Certain statements in this presentation are forward-looking statements that reflect our current views with respect to, among other things, future events and our financial and operational performance. These statements are often, but not always, made through the use of words or phrases such as “may,” “should,” “could,” “predict,” “potential,” “believe,” “will likely result,” “expect,” “continue,” “will,” “anticipate,” “seek,” “aspire,” “estimate,” “intend,” “plan,” “project,” “projection,” “forecast,” “roadmap,” “goal,” “target,” “guidance,” “would,” and “outlook,” or the negative version of those words or other comparable words of a future or forward-looking nature. These forward-looking statements are not historical facts, and are based on current expectations, estimates and projections about our industry, management’s beliefs and certain assumptions made by management, many of which, by their nature, are inherently uncertain and beyond our control. The inclusion of these forward-looking statements should not be regarded as a representation by us or any other person that such expectations, estimates and projections will be achieved. Accordingly, we caution you that any such forward-looking statements are not guarantees of future performance and are subject to risks, assumptions and uncertainties that are difficult to predict. Although we believe that the expectations reflected in these forward-looking statements are reasonable as of the date made, actual results may prove to be materially different from the results expressed or implied by the forward-looking statements. There are or will be important factors that could cause our actual results to differ materially from those indicated in these forward-looking statements, including, but not limited to, the following: The acceptance by customers of Athens of the Company’s products and services; the ability of the Company to meet expectations regarding the benefits, costs, synergies, and financial and operational impact of the Athens merger; the possibility that any of the anticipated benefits, costs, synergies and financial and operational improvements of the Athens merger will not be realized or will not be realized as expected; the possibility that the Athens merger integration may be more expensive or take more time to complete than anticipated; the opportunities to enhance market share in certain markets and acceptance of the Company generally in new markets; economic conditions (including interest rate environment, government economic and monetary policies, the strength of global financial markets and inflation and deflation) that impact the financial services industry as a whole and/or our business; the concentration of our business in the Nashville metropolitan statistical area (“MSA”) and in Tennessee, and the effect of changes in the economic, political and environmental conditions on this market; increased competition in the financial services industry, locally, regionally or nationally, which may adversely affect pricing and the other terms offered to our clients; an increase in the cost of deposits, loss of deposits or a change in the deposit mix, which could increase our cost of funding; an increase in the costs of capital, which could negatively affect our ability to borrow funds, successfully raise additional capital or participate in strategic acquisition opportunities; our dependence on our management team and board of directors and changes in our management and board composition; our reputation in the community; our ability to execute our strategy and to achieve our loan ROAA and efficiency ratio goals, hire seasoned bankers, loan and deposit growth through organic growth and strategic acquisitions; credit risks related to the size of our borrowers and our ability to adequately identify, assess and limit our credit risk; our concentration of large loans to a small number of borrowers; the significant portion of our loan portfolio that originated during the past two years and therefore may less reliably predict future collectability than older loans; the adequacy of reserves (including our allowance for loan losses) and the appropriateness of our methodology for calculating such reserves; non-performing loans and leases; non-performing assets; charge-offs, non-accruals, troubled debt restructurings, impairments and other credit-related issues; adverse trends in the healthcare service industry, which is an integral component of our market’s economy; our management of risks inherent in our commercial real estate loan portfolio, and the risk of a prolonged downturn in the real estate market, which could impair the value of our collateral and our ability to sell collateral upon any foreclosure; governmental legislation and regulation, including changes in the nature and timing of the adoption and effectiveness of new requirements under the Dodd-Frank Act of 2010, as amended, Basel guidelines, capital requirements, accounting regulation or standards and other applicable laws and regulations; the impact of the Tax Cuts and Job Act of 2017, as amended, on the Company and its financial performance and results of operations; the loss of large depositor relationships, which could force us to fund our business through more expensive and less stable sources; operational and liquidity risks associated with our business, including liquidity risks inherent in correspondent banking; volatility in interest rates and our overall management of interest rate risk, including managing the sensitivity of our interest-earning assets and interest-bearing liabilities to interest rates, and the impact to our earnings from a change in interest rates; the potential for our bank’s regulatory lending limits and other factors related to our size to restrict our growth and prevent us from effectively implementing our business strategy; strategic acquisitions we may undertake to achieve our goals; the sufficiency of our capital, including sources of capital and the extent to which we may be required to raise additional capital to meet our goals; fluctuations in the fair value of our investment securities that are beyond our control; deterioration in the fiscal position of the U.S. government and downgrades in Treasury and federal agency securities; potential exposure to fraud, negligence, computer theft and cyber-crime; the adequacy of our risk management framework; our dependence on our information technology and telecommunications systems and the potential for any systems failures or interruptions; threats to and breaches of our information technology systems and data security, including cyber-attacks; our dependence upon outside third parties for the processing and handling of our records and data; our ability to adapt to technological change; the financial soundness of other financial institutions; our exposure to environmental liability risk associated with our lending activities; our engagement in derivative transactions; our involvement from time to time in legal proceedings and examinations and remedial actions by regulators; the susceptibility of our market to natural disasters and acts of God; and the effectiveness of our internal controls over financial reporting and our ability to remediate any future material weakness in our internal controls over financial reporting. The foregoing factors should not be construed as exhaustive and should be read in conjunction with those factors that are detailed from time to time in the Company’s periodic and current reports filed with the Securities and Exchange Commission, including those factors included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2018 under the headings “Item 1A. Risk Factors” and “Cautionary Note Regarding Forward-Looking Statements” and in the Company’s Quarterly Reports on Form 10-Q and Current Reports on Form 8-K. If one or more events related to these or other risks or uncertainties materialize, or if our underlying assumptions prove to be incorrect, actual results may differ materially from our forward-looking statements. Accordingly, you should not place undue reliance on any such forward-looking statements. Any forward-looking statement speaks only as of the date of this presentation, and we do not undertake any obligation to publicly update or review any forward-looking statement, whether as a result of new information, future developments or otherwise, except as required by law. New risks and uncertainties may emerge from time to time, and it is not possible for us to predict their occurrence or how they will affect us. Safe Harbor Statements

Operating EPS(1) of $0.38 which includes $0.04 for the implementation of a hedging program for residential mortgage loans originated with the intent to sell. Excluding this, we have 17.2% year-over year EPS growth. Operating Return on Average Assets(1) of 1.40%; ROATE of 13.05%. Annualized AVG Deposit growth of 22.7% over 1Q19. Noninterest Income to Average Assets of 1.41% driven predominately by Mortgage and TriNet Fees. Current Criticized and Classified loans continue to be at a low level. Second Quarter 2019 Highlights Operating results are non-GAAP financial measures that adjust GAAP reported net income and other metrics for certain income and expense items as outlined in the non-GAAP reconciliation calculations included in the Appendix at the end of this presentation using a blended statutory income tax rate of 26.14% excluding non-deductible one-time merger related items.

CapStar was named to the list of the Tennessean’s Top Workplaces 2019. CapStar East Tennessee was recognized by The Daily Post-Athenian as the “Best of the Best” TOP Workplaces 2019. CapStar was awarded Preferred Lending Program status from the Office of Credit Risk Management, a division of the Small Business Administration. CapStar earned a Bauer Five-Star rating from BauerFinancial based on capital adequacy, asset quality, profitability and liquidity. CapStar is a Greenwich CX Leader in U.S. Commercial Small Business Banking recognizing leadership in the increasingly important field of customer experience. CapStar Recognition in the Marketplace

Sound, Profitable, Growth Financial Metrics - 2Q19 Operating results are non-GAAP financial measures that adjust GAAP reported net income and other metrics for certain income and expense items as outlined in the non-GAAP reconciliation calculations included in the Appendix at the end of this presentation using a blended statutory income tax rate of 26.14% excluding non-deductible one-time merger related items. Efficiency ratio is Noninterest expense divided by the sum of net interest income and noninterest income Calculated on a tax equivalent basis.     Operating Metrics1 2Q19 1Q19 2Q18                     Soundness Allowance for Loan Losses to Total Loans 0.90% 0.88% 1.41% Net Charge-Offs to Average Loans (Periods Annualized) 0.02% 0.01% 0.01% Non-Performing Assets/Assets 0.12% 0.14% 0.39% Total Risk Based Capital Ratio 13.29% 12.64% 12.53% Tangible Equity / Tangible Assets 11.02% 10.76% 10.53% Profitability   Return on Average Assets (ROAA) 1.40% 1.06% 1.08%   Return on Average Equity (ROAE) 10.78% 8.23% 9.95%   Return on Average Tangible Equity (ROATE) 13.05% 10.02% 10.38%   Efficiency Ratio2 61.39% 65.01% 67.38%   Net Interest Margin3 (tax equivalent basis) 3.68% 3.75% 3.46%                         Growth Operating Net Income $7.02 $5.22 $3.76 Diluted EPS $0.38 $0.28 $0.29 Tangible Book Value per Share $11.87 $11.55 $11.56   Total Loans (Avg) $1,469 $1,462 $1,042   Total Deposits (Avg) $1,678 $1,588 $1,138   Total Assets (Avg) $2,004 $1,988 $1,396

Deposit Growth and Costs Avg Deposit balances grew 22.7% on an annualized basis from 1Q19. EOP Deposits grew 10.5% on an annualized basis from 1Q19. Excluding Day 1 deposits from Athens, organic average deposit growth was 11.9% vs. 2Q18. Fed Funds 1.25% Fed Funds 1.50% Fed Funds 1.75% Fed Funds 2.00% Fed Funds 2.25% *Annualized % change from 1Q19 to 2Q19       2Q19 Change Vs. 1Q19* Change Vs. 2Q18 $ in millions $ $ % $ % Balance Sheet (EOP Balances) Non-Interest Bearing $ 327 $ 14 17.9% $ 103 46.1% Interest Checking (NOW) 491 41 36.2% 199 68.3% Savings & Money Market 508 16 12.9% 86 20.4% Time Deposit's under $100K 105 (15) -49.2% 63 151.9% Time Deposit's over $100K 292 (12) -15.6% 127 76.1% Deposits $ 1,723 $ 44 10.5% $ 578 50.5%

Loan Growth Avg Loans increased 2.1% on an annualized basis from 1Q19. Excluding Day 1 loans from Athens, organic average loan growth is 7.9% over 2Q18. Total “in market” growth was 10.3% excluding Athens vs. 2Q18 while our “out of market” loans declined $46MM from $124MM in 2Q18 to $78MM over the same period. *Annualized % change from 1Q19 to 2Q19       2Q19 Change Vs. 1Q19* Change Vs. 2Q18 $ in millions $ $ % $ % Balance Sheet (EOP Balances) Commercial and Industrial $ 405 $ (15) -14.5% $ 19 4.8% Commercial Real Estate (Non Owner Occupied) 422 18 17.9% 135 47.0% Commercial Real Estate (Owner Occupied) 173 3 6.7% 52 42.7% Consumer Real Estate 255 6 9.8% 145 132.0% Construction & Land Development 124 (38) -94.8% 27 28.3% Consumer 27 0 7.1% 17 176.1% Other 35 (1) -11.1% (1) -1.8% Total Loans $ 1,441 $ (27) -7.4% $ 394 37.7%

Credit Quality The current reserve of $12.9MM plus the $4.4MM fair value mark on acquired loans equates to a 1.20% reserve/loans. Criticized and Classified Loans remain at low levels. Average criticized and classified borrower credit balance is $300K. Current NPAs/Assets remain at a low level.

Loan Yields The yield on new loan production in 2Q19 was 5.55%. The last 3 quarters of new loan production yields are above our portfolio average. The average 1 month Libor rate was 2.45% and down 5 bps from the first quarter. Loan Yield Rollforward 1Q19 (Avg) 5.49% Decrease in Purchase Accounting (0.02%) Loan Volume/Mix (0.02%) Decrease in Loan Fees (0.01%) 2Q19 (Avg) 5.44%

Net Interest Margin(1) Our NIM was 3.68% and decreased 7 bps. We have taken a number of actions to better position the balance sheet in a rates down scenario. EOP loan to deposit ratio decreased to 93.0% with loan payoffs late in the quarter. Net Interest Margin     1Q19 (Avg) 3.75% Increase in Deposit Balances and Costs (0.14%) Decrease in Investment Balances (0.05%) Decrease in Loan Yields (0.04%) Increase in Loan HFI/HFS Balances 0.07% Decrease in Borrowing Balances 0.09% 2Q19 (Avg) 3.68% Calculated on a tax equivalent basis

IRR Summary Like most of the industry, we have interest rate risk; we are in the range of peers: We have taken the following actions to mitigate risk in a rates down scenario: Emphasized fixed rate lending with relationship managers. Restructured $45MM of securities during the quarter, lowered floating rate allocation of securities portfolio to 6% and extended duration slightly to 3.5 years. Unwound $20MM notional of fixed to floating interest rate swaps. Lowered rates on time deposits and shortened duration of wholesale liabilities to under 3 months. Relationship managers are proactively meeting with clients regarding opportunities to optimize deposit costs with potential rate cuts. Source: S&P Global *Percentage change is for a DN 50bps shock Name Ticker 3/31/2019 DN 100 UP 100 Atlantic Capital ACBI -6.91% 6.83% Pinnacle PNFP -5.30% 4.10% First Bank FBK -4.90% 0.80% Crescom CARO -3.90% 0.70% Southern First SFST -3.53% -0.46% CapStar CSTR -3.50% 1.60% First TN* FHN -2.70% 5.20% Renasant RNST -2.69% 1.96% Cadence CADE -0.98% 3.98% Franklin Synergy FSB 0.84% -1.40% Reliant RBNC 1.70% -1.00% Our loan portfolio profile has changed with the acquisition of Athens:

Noninterest Income Treasury Management and other Deposit Service Charges continue to grow. Net loss on sale of securities due to repositioning of Investment Portfolio with anticipated rate cuts. Tri-Net fees of $1MM. Mortgage income predominantly due to higher volumes and the implementation of forward rate locks and mandatory delivery vs. selling at best efforts ($912K). Other fee businesses (Debit card Interchange, Wealth, BOLI, Title and Finance company) continue to demonstrate growth.   Three Months Ended (Dollars in thousands) June 30, March 31, December 31, September 30, June 30, 2019 2019 2018 2018 2018 Noninterest Income  Treasury Management and Other Deposit Service Charges $ 813 $ 798 $ 793 $ 528 $ 427 Net Gain (Loss) on Sale of Securities (121) 12 1 (1) 3 Tri-Net Fees 1,024 641 276 374 325 Mortgage Banking Income 3,087 1,385 1,324 1,634 1,383 Other 2,229 1,899 3,993 683 627 Total Noninterest Income $ 7,032 $ 4,735 $ 6,387 $ 3,218 $ 2,765 Average Assets 2,004,207 1,988,478 1,940,991 1,421,873 1,396,359 Noninterest Income / Average Assets 1.41% 0.97% 1.31% 0.90% 0.79%    Noninterest Income was 1.41% of Average Assets.

Noninterest Expense .42 Three Months Ended (Dollars in thousands) June 30, March 31, December 31, September 30, June 30, 2019 2019 2018 2018 2018 Noninterest Expense  Salaries and Employee Benefits $ 8,563 $ 8,432 $ 9,475 $ 6,514 $ 6,340 Data Processing & Software 1,862 1,474 1,424 803 810 Professional Fees 501 543 534 255 344 Occupancy 809 883 736 544 535 Equipment 1,026 852 810 520 602 Regulatory Fees 272 274 364 228 233 Merger Related Expenses 1,711 594 8,929 540 335 Amortization of Intangibles 419 430 442 3 10 Other Operating 1,307 1,243 1,118 663 796 Total Noninterest Expense $ 16,470 $ 14,725 $ 23,832 $ 10,070 $ 10,005 Efficiency Ratio 68.51% 67.74% 98.88% 68.22% 69.71% Average Assets $ 2,004,207 $ 1,988,478 $ 1,940,991 $ 1,421,873 $ 1,396,359 Noninterest Expense / Average Assets 3.30% 3.00% 4.87% 2.81% 2.87% FTE 290 289 286 185 183    Operating Noninterest Expense(1) $ 14,759 $ 14,131 $ 14,903 $ 9,530 $ 9,670 Operating Efficiency Ratio(1) 61.39% 65.01% 61.83% 64.56% 67.38% Operating Noninterest Expense / Average Assets(1) 2.95% 2.88% 3.05% 2.66% 2.78% Operating Efficiency Ratio of 61.39% was in line with previously provided guidance. (1) Operating results are non-GAAP financial measures that adjust GAAP reported net income and other metrics for certain income and expense items as outlined in the non-GAAP reconciliation calculations included in the Appendix at the end of this presentation using a blended statutory income tax rate of 26.14% excluding non-deductible one-time merger related items.             Data Processing, Software and Equipment were elevated over the prior quarter due to the following: $50K of one-time expenses. $100K of “bubble” expenses for two managed IT providers; one vendor goes away in 4Q19. $200K of Equipment upgrades in East TN. Implemented new modules for enhanced customer experience. Majority of Merger expenses are complete.

All of our capital ratios increased from the prior quarter and are above regulatory guidelines. Shares repurchases: 2Q19: 219,600 CSTR shares in 2Q19 at an average price of $15.47 per share. YTD 2019: 375,000 CSTR shares at an average price of $15.53 per share. Paid quarterly cash dividend of $0.05/share to all shareholders on May 24, 2019. *Reconciliation provided in non-GAAP tables in the Appendix at the end of this presentation. Capital Ratios 6/30/19   3/31/19   12/31/18   9/30/18   "Well Capitalized" Guidelines                     Tangible Equity / Tangible Assets* 11.02%   10.76%   10.86%   10.72%   NA Tangible Common Equity / Tangible Assets* 10.56%   10.31%   10.39%   10.09%   NA Leverage 11.01%   10.97%   11.06%   11.02%   ≥ 5.00% Tier 1 Risk Based Capital 12.53%   11.90%   12.13%   11.49%   ≥ 8.00% Total Risk Based Capital 13.29%   12.64%   12.84%   12.62%   ≥ 10.00% Draft Capital

CapStar’s strategy remains one of sound, profitable growth with an overall objective of becoming a high performing financial institution: Continuing to build out a client-centric model committed to serving local consumers, small and medium sized businesses and their owners and employees in our target markets. Expanding market share in Middle and East Tennessee. Building a consistent and stable earnings franchise. Improving our ability to grow stable, low cost deposits. Maintaining a sound credit profile. Exploring strategic and opportunistic M&A. Points of Emphasis

Appendix: Non-GAAP Reconciliations

  Three Months Ended (Dollars in thousands, except per share information) June 30, 2019 March 31, 2019 December 31, 2018 September 30, 2018 June 30, 2018 TANGIBLE EQUITY Total Shareholders’ Equity $ 262,664 $ 259,751 $ 254,379 $ 157,510 $ 153,146 Less: Intangible Assets 45,199 45,618 46,048 6,219 6,222 Tangible Equity 217,465 214,133 208,331 151,291 146,924 TANGIBLE COMMON EQUITY Tangible Equity $ 217,465 $ 214,133 $ 208,331 $ 151,291 $ 146,924 Less: Preferred Equity 9,000 9,000 9,000 9,000 9,000 Tangible Common Equity 208,465 205,133 199,331 142,291 137,924 TANGIBLE EQUITY TO TANGIBLE ASSETS Tangible Equity $ 217,465 $ 214,133 $ 208,331 $ 151,291 $ 146,924 Total Assets 2,018,421 2,035,811 1,963,883 1,416,907 1,401,181 Less: Intangible Assets 45,199 45,618 46,048 6,219 6,222 Tangible Assets 1,973,223 1,990,193 1,917,835 1,410,689 1,394,959 Tangible Equity to Tangible Assets 11.02% 10.76% 10.86% 10.72% 10.53% TANGIBLE COMMON EQUITY TO TANGIBLE ASSETS Tangible Common Equity $ 208,465 $ 205,133 $ 199,331 $ 142,291 $ 137,924 Tangible Assets 1,973,223 1,990,193 1,917,835 1,410,689 1,394,959 Tangible Common Equity to Tangible Assets 10.56% 10.31% 10.39% 10.09% 9.89% Non-GAAP Financial Measures

  Three Months Ended (Dollars in thousands, except per share information) June 30, 2019 March 31, 2019 December 31, 2018 September 30, 2018 June 30, 2018 RETURN ON AVERAGE TANGIBLE EQUITY (ROATE) Total Average Shareholders’ Equity $ 261,197 $ 257,105 $ 245,811 $ 156,264 $ 151,535 Less: Average Intangible Assets 45,456 45,890 45,687 6,220 6,228 Average Tangible Equity 215,741 211,215 200,124 150,044 145,307 Net Income 5,756 4,780 (708) 3,656 3,513 Return on Average Tangible Equity (ROATE) 10.70% 9.18% -1.40% 9.67% 9.70% RETURN ON AVERAGE TANGIBLE COMMON EQUITY (ROATCE) Average Tangible Equity $ 215,741 $ 211,215 $ 200,124 $ 150,044 $ 145,307 Less: Preferred Equity 9,000 9,000 9,000 9,000 9,000 Average Tangible Common Equity 206,741 202,215 191,124 141,044 136,307 Net Income 5,756 4,780 (708) 3,656 3,513 Return on Average Tangible Common Equity (ROATCE) 11.17% 9.59% -1.47% 10.28% 10.34% Non-GAAP Financial Measures

  Three Months Ended (Dollars in thousands, except per share information) June 30, 2019 March 31, 2019 December 31, 2018 September 30, 2018 June 30, 2018 TANGIBLE BOOK VALUE PER SHARE, REPORTED Tangible Common Equity $ 208,465 $ 205,133 $ 199,331 $ 142,291 $ 137,924 Shares of Common Stock Outstanding 17,561,476 17,765,124 17,724,721 12,125,122 11,931,131 Tangible Book Value Per Share, Reported $11.87 $11.55 $11.25 $11.74 $11.56 SHARES OUTSTANDING AT END OF PERIOD Shares of Common Stock Outstanding 17,561,476 17,765,124 17,724,721 12,125,122 11,931,131 Shares of Preferred Stock Outstanding 878,048 878,048 878,048 878,048 878,049 Total Shares Outstanding at End of Period 18,439,524 18,643,172 18,602,769 13,003,170 12,809,180 TANGIBLE BOOK VALUE PER SHARE, ADJUSTED Tangible Equity $ 217,465 $ 214,133 $ 208,331 $ 151,291 $ 146,924 Total Shares Outstanding at End of Period 18,439,524 18,643,172 18,602,769 13,003,170 12,809,180 Tangible Book Value Per Share, Adjusted $11.79 $11.49 $11.20 $11.63 $11.47 Non-GAAP Financial Measures

  Three Months Ended (Dollars in thousands, except per share information) June 30, 2019 March 31, 2019 December 31, 2018 September 30, 2018 June 30, 2018 OPERATING NET INCOME Net Income $ 5,756 $ 4,780 $ (708) $ 3,656 $ 3,513 Add: Merger Related Expense 1,711 594 8,929 540 335 Less: Income Tax Impact (447) (155) (1,985) (141) (88) Operating Net Income 7,020 5,219 6,236 4,055 3,760 OPERATING DILUTED NET INCOME PER SHARE Operating Net Income $ 7,020 $ 5,219 $ 6,236 $ 4,055 $ 3,760 Average Diluted Shares Outstanding 18,650,706 18,830,933 18,716,562 13,113,775 13,067,223 Operating Diluted Net Income per Share $0.38 $0.28 $0.33 $0.31 $0.29 OPERATING RETURN ON AVERAGE ASSETS (ROAA) Operating Net Income $ 7,020 $ 5,219 $ 6,236 $ 4,055 $ 3,760 Total Average Assets 2,004,207 1,988,478 1,940,991 1,421,873 1,396,359 Operating Return on Average Assets (ROAA) 1.40% 1.06% 1.27% 1.13% 1.08% OPERATING RETURN ON AVERAGE TANGIBLE EQUITY (ROATE) Average Tangible Equity $ 215,741 $ 211,215 $ 200,124 $ 150,044 $ 145,307 Operating Net Income 7,020 5,219 6,236 4,055 3,760 Operating Return on Average Tangible Equity (ROATE) 13.05% 10.02% 12.36% 10.72% 10.38% Non-GAAP Financial Measures Operating results are non-GAAP financial measures that adjust GAAP reported net income and other metrics for certain income and expense items as outlined in the non-GAAP reconciliation calculations above using a blended statutory income tax rate of 26.14% excluding non-deductible one-time merger related items.

  Three Months Ended (Dollars in thousands, except per share information) June 30, 2019 March 31, 2019 December 31, 2018 September 30, 2018 June 30, 2018 OPERATING NONINTEREST EXPENSE Noninterest Expense $ 16,470 $ 14,725 $ 23,832 $ 10,070 $ 10,005 Less: Merger Related Expense (1,711) (594) (8,929) (540) (335) Operating Noninterest Expense 14,759 14,131 14,903 9,530 9,670 OPERATING NONINTEREST EXPENSE / AVERAGE ASSETS Operating Noninterest Expense $ 14,759 $ 14,131 $ 14,903 $ 9,530 $ 9,670 Total Average Assets 2,004,207 1,988,478 1,940,991 1,421,873 1,396,359 Operating Noninterest Income / Average Assets 2.95% 2.88% 3.05% 2.66% 2.78% OPERATING EFFICIENCY RATIO Operating Noninterest Expense $ 14,759 $ 14,131 $ 14,903 $ 9,530 $ 9,670 Net Interest Income 17,008 17,002 17,716 11,543 11,587 Non Interest Income 7,032 4,735 6,387 3,218 2,765 Total Revenues 24,040 21,737 24,103 14,761 14,352 Operating Efficiency Ratio 61.39% 65.01% 61.83% 64.56% 67.38% Non-GAAP Financial Measures Operating results are non-GAAP financial measures that adjust GAAP reported net income and other metrics for certain income and expense items as outlined in the non-GAAP reconciliation calculations above using a blended statutory income tax rate of 26.14% excluding non-deductible one-time merger related items.

CapStar Financial Holdings, Inc. 1201 Demonbreun Street, Suite 700 Nashville, TN 37203 Mail: P.O. Box 305065 Nashville, TN 37230-5065 (615) 732-6400 Telephone www.capstarbank.com (615) 732-6455 Email: ir@capstarbank.com Contact Information Investor Relations Executive Leadership Claire W. Tucker Chief Executive Officer CapStar Financial Holdings, Inc. (615) 732-6402 Email: ctucker@capstarbank.com Tim Schools President, CapStar Financial Holdings, Inc. President and Chief Executive Officer, CapStar Bank (615) 732-7449 Email: tkschools@capstarbank.com Rob Anderson Chief Financial and Administrative Officer CapStar Financial Holdings, Inc. (615) 732-6470 Email: randerson@capstarbank.com Corporate Headquarters