ATLANTA, Jan. 30, 2020 (GLOBE NEWSWIRE) -- Atlantic Capital Bancshares, Inc. (NASDAQ: ACBI) announced net income from continuing operations for the quarter ended December 31, 2019 of $7.1 million, or $0.32 per diluted share, compared to $7.5 million, or $0.29 per diluted share, for the fourth quarter of 2018 and $7.6 million, or $0.33 per diluted share, for the third quarter of 2019. Diluted earnings per share from continuing operations for 2019 totaled $1.20, an increase of $0.13, or 12%, compared to 2018.
“For the fourth quarter of 2019 and for all of 2019, Atlantic Capital reported strong growth in earnings per share, average core deposits, and loans, while maintaining sound credit quality and a fortress balance sheet. We begin 2020 with strong momentum and tremendous opportunity in all of our businesses,” remarked Douglas Williams, President and Chief Executive Officer.
Highlights(1)
- Tangible book value per share increased to $14.09, from $11.88 at December 31, 2018 and $13.91 at September 30, 2019.
- Average deposits from continuing operations increased $366.5 million, or 21%, compared to the fourth quarter of 2018 and $197.0 million, or 40% annualized, compared to the third quarter of 2019.
- Total loans held for investment increased $145.5 million, or 8% from December 31, 2018 and $37.9 million, or 8% annualized, from September 30, 2019.
- Net charge-offs to average loans totaled 0.07% for the fourth quarter of 2019 and 0.11% for the full year of 2019.
- Atlantic Capital repurchased 452,000 shares in the fourth quarter totaling $8.1 million and repurchased 4.5 million shares totaling $79.0 million, or approximately 17% of total shares, since November 2018.
Income Statement
Taxable equivalent net interest income from continuing operations totaled $20.7 million for the fourth quarter of 2019, a decrease of $431,000, or 2%, from the fourth quarter of 2018, and an increase of $646,000, or 13% annualized, from the third quarter of 2019. The linked quarter increase in taxable equivalent net interest income was driven by a combination of growth in loans, deposits, investment securities, and excess cash.
Taxable equivalent net interest margin from continuing operations was 3.38% in the fourth quarter of 2019, a decrease of 28 basis points from the fourth quarter of 2018 and a decrease of 14 basis points from the third quarter of 2019. The decrease in the fourth quarter of 2019 compared to the third quarter of 2019 was primarily the result of an increase in excess cash due to strong deposit growth and lower loan yields due to lower short-term interest rates. This was partially offset by a drop in the cost of interest bearing deposits and an increase in noninterest bearing deposits.
The yield on loans from continuing operations in the fourth quarter of 2019 was 4.95%, a decrease of 36 basis points from the fourth quarter of 2018 and a decrease of 23 basis points from the third quarter of 2019. The decrease in loan yields was due primarily to the repricing of our variable rate loans as a result of declines in 1 month LIBOR during 2019.
The cost of deposits from continuing operations in the fourth quarter of 2019 was 0.90%, a decrease of 3 basis points from the fourth quarter of 2018 and a decrease of 16 basis points from the third quarter of 2019. The cost of interest bearing deposits from continuing operations decreased 4 basis points to 1.36% from the fourth quarter of 2018, and decreased 22 basis points from the third quarter of 2019.
(1) Commentary is on a fully taxable-equivalent basis unless otherwise noted. Consistent with SEC guidance in Industry Guide 3 that contemplates the calculation of tax-exempt income on a tax equivalent basis, net interest income and net interest margin are provided on a fully taxable-equivalent basis, which generally assumes a 21% marginal tax rate. We provide detailed reconciliations in the Non-GAAP Performance and Financial Measures Reconciliation table on page 15.
The provision for loan losses from continuing operations was $787,000 in the fourth quarter of 2019 compared to $502,000 in the fourth quarter of 2018 and $413,000 in the third quarter of 2019. Annualized net charge-offs were 0.07% of average loans in the fourth quarter of 2019 and 0.11% for the full year of 2019.
Noninterest income from continuing operations totaled $2.7 million in the fourth quarter of 2019 compared to
$164,000 in the fourth quarter of 2018 and $2.8 million in the third quarter of 2019. Service charge income in the fourth quarter of 2019 totaled $998,000, an increase of $122,000 or 14%, compared to the fourth quarter of 2018 and an increase of $73,000, or 32% annualized, from the third quarter of 2019. This increase was driven by continued growth in our payments and fintech businesses. The fourth quarter of 2018 included a loss of $1.9 million on the sale of $63 million in investment securities to help fund the cash payout for the sale of 14 branches in Tennessee and northwest Georgia that closed in the second quarter of 2019.
Derivatives income totaled $315,000 compared to a loss of $293,000 in the third quarter of 2019 due to credit valuation adjustments on the customer swap portfolio. SBA income totaled $846,000, a decrease from $1.2 million in the third quarter of 2019 primarily as a result of fewer SBA loan sales during the quarter.
Noninterest expense from continuing operations totaled $13.4 million in the fourth quarter of 2019, an increase of
$1.2 million compared to the fourth quarter of 2018, and an increase of $705,000 compared to the third quarter of 2019. Salaries and employee benefits expense increased $205,000, to $8.5 million in the fourth quarter of 2019 compared to the third quarter of 2019, primarily from the full impact of new hires and higher incentive expense. Communications and data processing expense for the fourth quarter of 2019 increased $270,000 compared to the third quarter of 2019, due to a higher volume of transactions in the payments business, as well as non-recurring charges related to vendor negotiations and contract terminations. The FDIC premium expense in the fourth quarter of 2019 increased $193,000 compared to the third quarter of 2019 due to the FDIC assessment credit received in the third quarter.
The overall effective tax rate from continuing operations was 21.3% for the fourth quarter of 2019 and for the full year of 2019.
Balance Sheet
Total loans held for investment were $1.87 billion at December 31, 2019, an increase of $145.5 million, or 8%, from December 31, 2018 and an increase of $37.9 million, or 8% annualized, from September 30, 2019. Mortgage warehouse loan participations decreased $14.0 million from December 31, 2018 and $9.3 million from September 30, 2019. Multifamily loans increased $38.0 million in the fourth quarter of 2019 and included $28.0 million in construction loans that moved to permanent funding.
At December 31, 2019, the allowance for loan losses was $18.5 million, or 0.99% of loans held for investment compared to 1.03% at December 31, 2018 and 0.98% at September 30, 2019. Non-performing assets from continuing operations totaled $7.6 million, or 0.26% of total assets as of December 31, 2019 compared to 0.20% of total assets as of December 31, 2018 and 0.29% of total assets as of September 30, 2019.
Total average deposits from continuing operations were $2.15 billion for the fourth quarter of 2019, an increase of $366.5 million, or 21%, from the fourth quarter of 2018 and an increase of $197.0 million, or 40% annualized, from the third quarter of 2019. This included increases in large, year-end deposits that the Company anticipates to decrease in the first quarter of 2020.
Noninterest bearing deposits were 33.5% of total average deposits from continuing operations in the fourth quarter of 2019, compared to 33.6% in the fourth quarter of 2018 and 32.7% in the third quarter of 2019.
Tangible common equity to tangible assets was 10.6% at December 31, 2019, a decrease from 12.9% at September 30, 2019, due to the balance sheet impact from the increase in year-end deposits. The estimated total risk based capital ratio was 15.0% at December 31, 2019 compared to 14.2% at December 31, 2018 and 15.5% at September 30, 2019.
Earnings Conference Call
The Company will host a conference call at 9:00 a.m. EST on Friday, January 31, 2020, to discuss the financial results for the quarter ended December 31, 2019. Individuals wishing to participate in the conference call may do so by dialing 866-777-2509 from the United States. The call will also be available live via webcast on the Investor Relations page of the Company's website, www.atlanticcapitalbank.com.
Non-GAAP Financial Measures
Statements included in this press release include non-GAAP financial measures and should be read along with the accompanying tables, which provide a reconciliation of non-GAAP financial measures to GAAP financial measures. Atlantic Capital management uses non-GAAP financial measures, including: (i) taxable equivalent interest income; (ii) taxable equivalent net interest income; (iii) taxable equivalent net interest margin; (iv) taxable equivalent income before income taxes; (v) taxable equivalent income tax expense; (vi) tangible assets; (vii) tangible common equity; and (viii) tangible book value per common share, in its analysis of the Company's performance. Tangible common equity excludes goodwill and other intangible assets from shareholders' equity.
Management believes that non-GAAP financial measures provide a greater understanding of ongoing performance and operations, and enhance comparability with prior periods. Non-GAAP financial measures should not be considered as an alternative to any measure of performance or financial condition as determined in accordance with GAAP, and investors should consider Atlantic Capital’s performance and financial condition as reported under GAAP and all other relevant information when assessing the performance or financial condition of the Company. Non-GAAP financial measures have limitations as analytical tools, and investors should not consider them in isolation or as a substitute for analysis of the results or financial condition as reported under GAAP. Non-GAAP financial measures may not be comparable to non-GAAP financial measures presented by other companies.
Forward-Looking Statements
This press release contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements represent plans, estimates, objectives, goals, guidelines, expectations, intentions, projections and statements of our beliefs concerning future events, business plans, objectives, expected operating results and the assumptions upon which those statements are based. Forward-looking statements include without limitation, any statement that may predict, forecast, indicate or imply future results, performance or achievements, and are typically identified with words such as “may,” “could,” “should,” “will,” “would,” “believe,” “anticipate,” “estimate,” “project,” “expect,” “intend,” “plan,” or words or phases of similar meaning. Forward-looking statements may include, among other things, statements about Atlantic Capital’s confidence in its strategies and its expectations about financial performance, market growth, market and regulatory trends and developments, acquisitions and divestitures, new technologies, services and opportunities and earnings. The forward-looking statements are based largely on Atlantic Capital’s expectations and are subject to a number of known and unknown risks and uncertainties that are subject to change based on factors which are, in many instances, beyond Atlantic Capital’s control. Atlantic Capital undertakes no obligation to publicly update any forward-looking statement to reflect developments occurring after the statement is made, except as otherwise required by law. Actual results, performance or achievements could differ materially from those contemplated, expressed, or implied by the forward-looking statements as a result of, among other factors, the risks and uncertainties described in “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in Atlantic Capital’s Annual Report on Form 10-K and Quarterly Reports on Form 10-Q. Please refer to the SEC’s website at www.sec.gov where you can review those documents.
About Atlantic Capital Bancshares
Atlantic Capital Bancshares, Inc. is a $2.9 billion publicly traded bank holding company headquartered in Atlanta, Georgia. Atlantic Capital offers commercial and not-for-profit banking services, specialty corporate financial services, private banking services and commercial real estate finance solutions to privately held companies and individuals in the Atlanta area, as well as specialized financial services for select clients nationally.
Media Contact:
Ashley Carson
Email: ashley.carson@atlcapbank.com Phone: 404-995-6050
Financial Contact:
Patrick Oakes
Email: patrick.oakes@atlcapbank.com Phone: 404-995-6050
| ATLANTIC CAPITAL BANCSHARES, INC. | ||||||||||||||||||||||||||||
| Selected Financial Information | Fourth Quarter 2019 to 2018 Change | YTD 2019 to 2018 Change | ||||||||||||||||||||||||||
| 2019 | 2018 | For the year ended December 31, | ||||||||||||||||||||||||||
| (in thousands, except share and per share data; taxable equivalent) | Fourth Quarter | Third Quarter | Second Quarter | First Quarter | Fourth Quarter | 2019 | 2018 | |||||||||||||||||||||
| INCOME SUMMARY(1) | ||||||||||||||||||||||||||||
| Interest income (2) | $ | 26,699 | $ | 26,624 | $ | 26,686 | $ | 26,297 | $ | 26,725 | (0 | ) | % | $ | 106,306 | $ | 95,155 | 12 | % | |||||||||
| Interest expense | 5,965 | 6,536 | 6,709 | 5,773 | 5,560 | 7 | 24,983 | 18,513 | 35 | |||||||||||||||||||
| Net interest income | 20,734 | 20,088 | 19,977 | 20,524 | 21,165 | (2 | ) | 81,323 | 76,642 | 6 | ||||||||||||||||||
| Provision for loan losses | 787 | 413 | 698 | 814 | 502 | 57 | 2,712 | 1,946 | 39 | |||||||||||||||||||
| Net interest income after provision for loan losses | 19,947 | 19,675 | 19,279 | 19,710 | 20,663 | (3 | ) | 78,611 | 74,696 | 5 | ||||||||||||||||||
| Noninterest income | 2,679 | 2,769 | 2,941 | 2,336 | 164 | 1,534 | 10,725 | 10,047 | 7 | |||||||||||||||||||
| Noninterest expense | 13,382 | 12,677 | 13,254 | 13,795 | 12,208 | 10 | 53,108 | 49,991 | 6 | |||||||||||||||||||
| Income from continuing operations before income taxes | 9,244 | 9,767 | 8,966 | 8,251 | 8,619 | 7 | 36,228 | 34,752 | 4 | |||||||||||||||||||
| Income tax expense | 2,104 | 2,198 | 1,957 | 1,811 | 1,136 | 85 | 8,070 | 6,702 | 20 | |||||||||||||||||||
| Net income from continuing operations (2)(3) | 7,140 | 7,569 | 7,009 | 6,440 | 7,483 | (5 | ) | 28,158 | 28,050 | 0 | ||||||||||||||||||
| Income (loss) from discontinued operations, net of tax | - | 617 | 22,143 | (1,063 | ) | 1,347 | (100 | ) | 21,697 | 482 | 4,401 | |||||||||||||||||
| Net income | $ | 7,140 | $ | 8,186 | $ | 29,152 | $ | 5,377 | $ | 8,830 | (19 | ) | % | $ | 49,855 | $ | 28,532 | 75 | % | |||||||||
| PER SHARE DATA | ||||||||||||||||||||||||||||
| Diluted earnings per share - continuing operations | $ | 0.32 | $ | 0.33 | $ | 0.29 | $ | 0.26 | $ | 0.29 | $ | 1.20 | $ | 1.07 | ||||||||||||||
| Diluted earnings (loss) per share - discontinued operations | - | 0.03 | 0.92 | (0.04 | ) | 0.05 | 0.92 | 0.02 | ||||||||||||||||||||
| Diluted earnings per share | 0.32 | 0.36 | 1.21 | 0.21 | 0.34 | 2.12 | 1.09 | |||||||||||||||||||||
| Book value per share | 15.01 | 14.81 | 14.46 | 13.10 | 12.80 | 15.01 | 12.80 | |||||||||||||||||||||
| Tangible book value per common share (3) | 14.09 | 13.91 | 13.60 | 12.17 | 11.88 | 14.09 | 11.88 | |||||||||||||||||||||
| PERFORMANCE MEASURES | ||||||||||||||||||||||||||||
| Return on average equity | 8.65 | % | 9.77 | % | 34.38 | % | 6.80 | % | 10.90 | % | 15.10 | % | 9.05 | % | ||||||||||||||
| Return on average assets | 1.08 | 1.32 | 4.79 | 0.77 | 1.21 | 1.93 | 1.03 | |||||||||||||||||||||
| Taxable equivalent net interest margin - continuing operations | 3.38 | 3.52 | 3.61 | 3.74 | 3.66 | 3.58 | 3.50 | |||||||||||||||||||||
| Efficiency ratio - continuing operations | 57.57 | 55.72 | 58.06 | 60.61 | 57.50 | 57.99 | 57.93 | |||||||||||||||||||||
| CAPITAL | ||||||||||||||||||||||||||||
| Average equity to average assets | 12.47 | % | 13.54 | % | 13.94 | % | 11.34 | % | 11.11 | % | 12.77 | % | 11.34 | % | ||||||||||||||
| Tangible common equity to tangible assets | 10.61 | 12.92 | 13.37 | 10.51 | 10.25 | 10.61 | 10.25 | |||||||||||||||||||||
| Tier 1 capital ratio | 12.0 | (4 | ) | 12.5 | 13.4 | 11.0 | 11.5 | 12.0 | (4 | ) | 11.5 | |||||||||||||||||
| Total risk based capital ratio | 15.0 | (4 | ) | 15.5 | 16.5 | 13.7 | 14.2 | 15.0 | (4 | ) | 14.2 | |||||||||||||||||
| Number of common shares outstanding - basic | 21,751,026 | 22,193,761 | 23,293,465 | 24,466,964 | 25,290,419 | 21,751,026 | 25,290,419 | |||||||||||||||||||||
| Number of common shares outstanding - diluted | 21,974,959 | 22,405,141 | 23,508,442 | 24,719,273 | 25,480,233 | 21,974,959 | 25,480,233 | |||||||||||||||||||||
| ASSET QUALITY | ||||||||||||||||||||||||||||
| Allowance for loan losses to loans held for investment (5) | 0.99 | % | 0.98 | % | 1.02 | % | 1.04 | % | 1.03 | % | 0.99 | % | 1.03 | % | ||||||||||||||
| Net charge-offs to average loans | 0.07 | 0.11 | 0.14 | 0.11 | - | 0.11 | 0.02 | |||||||||||||||||||||
| Non-performing assets to total assets | 0.26 | 0.29 | 0.31 | 0.40 | 0.20 | 0.26 | 0.20 | |||||||||||||||||||||
| AVERAGE BALANCES | ||||||||||||||||||||||||||||
| Total loans- continuing operations | $ | 1,857,736 | $ | 1,801,629 | $ | 1,769,803 | $ | 1,707,682 | $ | 1,699,801 | $ | 1,769,613 | $ | 1,599,916 | ||||||||||||||
| Investment securities | 389,667 | 340,872 | 360,047 | 400,101 | 450,465 | 372,556 | 455,099 | |||||||||||||||||||||
| Total assets | 2,626,388 | 2,453,438 | 2,440,502 | 2,829,072 | 2,891,327 | 2,586,428 | 2,780,571 | |||||||||||||||||||||
| Deposits - continuing operations | 2,146,626 | 1,949,657 | 1,902,076 | 1,793,791 | 1,780,092 | 1,805,300 | 1,633,286 | |||||||||||||||||||||
| Shareholders’ equity | 327,543 | 332,291 | 340,119 | 320,812 | 321,348 | 330,216 | 315,253 | |||||||||||||||||||||
| Number of common shares - basic | 21,876,487 | 22,681,904 | 23,888,381 | 24,855,171 | 25,919,445 | 23,315,562 | 25,947,038 | |||||||||||||||||||||
| Number of common shares - diluted | 22,053,907 | 22,837,531 | 24,040,806 | 25,019,384 | 26,043,799 | 23,478,001 | 26,111,755 | |||||||||||||||||||||
| AT PERIOD END | ||||||||||||||||||||||||||||
| Loans and loans held for sale | $ | 1,873,894 | $ | 1,836,589 | $ | 1,789,740 | $ | 2,120,866 | $ | 2,106,992 | $ | 1,873,894 | $ | 2,106,992 | ||||||||||||||
| Investment securities | 399,433 | 329,648 | 348,723 | 402,640 | 402,486 | 399,433 | 402,486 | |||||||||||||||||||||
| Total assets | 2,910,379 | 2,410,198 | 2,389,680 | 2,855,887 | 2,955,440 | 2,910,379 | 2,955,440 | |||||||||||||||||||||
| Deposits | 2,499,046 | 1,854,272 | 1,851,531 | 2,440,448 | 2,544,163 | 2,499,046 | 2,544,163 | |||||||||||||||||||||
| Shareholders’ equity | 326,495 | 328,711 | 336,715 | 320,627 | 323,653 | 326,495 | 323,653 | |||||||||||||||||||||
| Number of common shares outstanding | 21,751,026 | 22,193,761 | 23,293,465 | 24,466,964 | 25,290,419 | 21,751,026 | 25,290,419 | |||||||||||||||||||||
| (1)On April 5, 2019, Atlantic Capital completed the sale to FirstBank of its Tennessee and northwest Georgia banking operations, including 14 branches and the mortgage business. The mortgage business and branches sold to FirstBank are reported as discontinued operations. (2)Interest income on tax-exempt securities has been increased to reflect comparable interest on taxable securities. The rate used was 21%, reflecting the statutory federal income tax rate. (3)Excludes effect of acquisition related intangibles. (4)Amounts are estimates as of 12/31/19. (5)The ratios for the first, second, and third quarters of 2019 and fourth quarter of 2018 are calculated on a continuing operations basis. | ||||||||||||||||||||||||||||
| ATLANTIC CAPITAL BANCSHARES, INC. | ||||||||||||||||||||||||||||||
| Financial Information from Discontinued Operations | ||||||||||||||||||||||||||||||
| Assets and Liabilities from Discontinued Operations | ||||||||||||||||||||||||||||||
| (in thousands) | December 31, 2019 | September 30, 2019 | December 31, 2018 | |||||||||||||||||||||||||||
| Cash | $ | – | $ | – | $ | 4,234 | ||||||||||||||||||||||||
| Loans held for sale - discontinued operations | – | – | 373,030 | |||||||||||||||||||||||||||
| Premises held for sale - discontinued operations | – | – | 7,722 | |||||||||||||||||||||||||||
| Goodwill - discontinued operations | – | – | 4,555 | |||||||||||||||||||||||||||
| Other assets | – | – | 1,405 | |||||||||||||||||||||||||||
| Total assets | $ | – | $ | – | $ | 390,946 | ||||||||||||||||||||||||
| Deposits to be assumed - discontinued operations | $ | – | $ | – | $ | 585,429 | ||||||||||||||||||||||||
| Securities sold under agreements to repurchase - discontinued operations | – | – | 6,220 | |||||||||||||||||||||||||||
| Total liabilities | $ | – | $ | – | $ | 591,649 | ||||||||||||||||||||||||
| Net liabilities | $ | – | $ | – | $ | (200,703 | ) | |||||||||||||||||||||||
| Components of Net Income (Loss) from Discontinued Operations | ||||||||||||||||||||||||||||||
| 2019 | 2018 | For the year ended December 31, | ||||||||||||||||||||||||||||
| (in thousands) | Fourth Quarter | Third Quarter | Second Quarter | First Quarter | Fourth Quarter | 2019 | 2018 | |||||||||||||||||||||||
| Net interest income | $ | - | $ | - | $ | (39 | ) | $ | 3,125 | $ | 3,225 | $ | 3,086 | $ | 14,140 | |||||||||||||||
| Provision for loan losses | - | - | – | – | (3,097 | ) | – | (3,097 | ) | |||||||||||||||||||||
| Net interest income after provision | - | - | (39 | ) | 3,125 | 6,322 | 3,086 | 17,237 | ||||||||||||||||||||||
| Service charges | - | - | 46 | 481 | 483 | 527 | 1,922 | |||||||||||||||||||||||
| Mortgage income | - | - | – | 288 | 320 | 288 | 1,302 | |||||||||||||||||||||||
| Gain on sale of branches | - | - | 34,475 | – | - | 34,475 | – | |||||||||||||||||||||||
| Other income | - | - | (22 | ) | 21 | 47 | (1 | ) | 123 | |||||||||||||||||||||
| Total noninterest income | - | - | 34,499 | 790 | 850 | 35,289 | 3,347 | |||||||||||||||||||||||
| Salaries and employee benefits | - | - | 330 | 2,427 | 2,757 | 2,757 | 11,714 | |||||||||||||||||||||||
| Occupancy | - | - | 71 | 339 | 479 | 410 | 2,016 | |||||||||||||||||||||||
| Equipment and software | - | - | 8 | 123 | 158 | 131 | 779 | |||||||||||||||||||||||
| Amortization of intangibles | - | - | – | 247 | 271 | 247 | 1,229 | |||||||||||||||||||||||
| Communications and data processing | - | - | 197 | 389 | 440 | 586 | 1,529 | |||||||||||||||||||||||
| Divestiture expense | - | - | 3,646 | 1,449 | 825 | 5,095 | 825 | |||||||||||||||||||||||
| Other noninterest expense | - | - | 101 | 358 | 446 | 459 | 1,849 | |||||||||||||||||||||||
| Total noninterest expense | - | - | 4,353 | 5,332 | 5,376 | 9,685 | 19,941 | |||||||||||||||||||||||
| Net income (loss) before provision for income taxes | - | - | 30,107 | (1,417 | ) | 1,796 | 28,690 | 643 | ||||||||||||||||||||||
| Provision (benefit) for income taxes | - | (617 | ) | 7,964 | (354 | ) | 449 | 6,993 | 161 | |||||||||||||||||||||
| Net income (loss) from discontinued operations | $ | - | $ | 617 | $ | 22,143 | $ | (1,063 | ) | $ | 1,347 | $ | 21,697 | $ | 482 | |||||||||||||||
| Atlantic Capital Bancshares, Inc. | |||||||||||
| Consolidated Balance Sheets (unaudited) | |||||||||||
| December 31, | September 30, | December 31, | |||||||||
| (in thousands, except share data) | 2019 | 2019 | 2018 | ||||||||
| ASSETS | |||||||||||
| Cash and due from banks | $ | 45,249 | $ | 42,577 | $ | 42,895 | |||||
| Interest-bearing deposits in banks | 421,079 | 27,167 | 216,040 | ||||||||
| Other short-term investments | – | – | 9,457 | ||||||||
| Cash and cash equivalents | 466,328 | 69,744 | 268,392 | ||||||||
| Securities available for sale | 282,461 | 286,785 | 402,486 | ||||||||
| Securities held to maturity (fair value of $115,291, $42,740 and $0 at December 31, 2019, September 30, 2019, and December 31, 2018, | 116,972 | 42,863 | – | ||||||||
| Other investments | 27,556 | 31,360 | 29,236 | ||||||||
| Loans held for sale | 370 | 916 | 5,889 | ||||||||
| Loans held for sale - discontinued operations(1) | – | – | 373,030 | ||||||||
| Loans held for investment(1) | 1,873,524 | 1,835,673 | 1,728,073 | ||||||||
| Less: allowance for loan losses | (18,535 | ) | (18,080 | ) | (17,851 | ) | |||||
| Loans held for investment, net | 1,854,989 | 1,817,593 | 1,710,222 | ||||||||
| Premises held for sale - discontinued operations(1) | – | – | 7,722 | ||||||||
| Premises and equipment, net(1) | 22,536 | 19,688 | 9,779 | ||||||||
| Bank owned life insurance | 66,421 | 66,047 | 65,149 | ||||||||
| Goodwill - discontinued operations(1) | – | – | 4,555 | ||||||||
| Goodwill - continuing operations(1) | 19,925 | 19,925 | 17,135 | ||||||||
| Other intangibles, net | 3,027 | 3,112 | 4,388 | ||||||||
| Other real estate owned | 278 | 278 | 874 | ||||||||
| Other assets | 49,516 | 51,887 | 56,583 | ||||||||
| Total assets | $ | 2,910,379 | $ | 2,410,198 | $ | 2,955,440 | |||||
| LIABILITIES AND SHAREHOLDERS' EQUITY | |||||||||||
| Deposits: | |||||||||||
| Noninterest-bearing demand(1) | $ | 824,646 | $ | 599,657 | $ | 602,252 | |||||
| Interest-bearing checking(1) | 373,727 | 240,427 | 252,490 | ||||||||
| Savings(1) | 1,219 | 1,081 | 725 | ||||||||
| Money market(1) | 1,173,218 | 921,133 | 987,183 | ||||||||
| Time(1) | 44,389 | 30,782 | 10,623 | ||||||||
| Brokered deposits | 81,847 | 61,192 | 99,241 | ||||||||
| Deposits to be assumed - discontinued operations(1) | – | – | 585,429 | ||||||||
| Total deposits | 2,499,046 | 1,854,272 | 2,537,943 | ||||||||
| Federal funds purchased | – | 57,000 | – | ||||||||
| Securities sold under agreements to repurchase - discontinued operations(1) | – | – | 6,220 | ||||||||
| Federal Home Loan Bank borrowings | – | 76,000 | – | ||||||||
| Long-term debt | 49,873 | 49,831 | 49,704 | ||||||||
| Other liabilities | 34,965 | 44,384 | 37,920 | ||||||||
| Total liabilities | 2,583,884 | 2,081,487 | 2,631,787 | ||||||||
| SHAREHOLDERS' EQUITY | |||||||||||
| Preferred stock, no par value; 10,000,000 shares authorized; no shares issued and outstanding | |||||||||||
| as of December 31, 2019, September 30, 2019, and December 31, 2018 | – | – | – | ||||||||
| Common stock, no par value; 100,000,000 shares authorized; 21,751,026, 22,193,761, | |||||||||||
| and 25,290,419 shares issued and outstanding as of December 31, 2019, | |||||||||||
| September 30, 2019, and December 31, 2018, respectively | 230,265 | 237,687 | 291,771 | ||||||||
| Retained earnings | 91,669 | 84,529 | 42,187 | ||||||||
| Accumulated other comprehensive income (loss) | 4,561 | 6,495 | (10,305 | ) | |||||||
| Total shareholders’ equity | 326,495 | 328,711 | 323,653 | ||||||||
| TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | $ | 2,910,379 | $ | 2,410,198 | $ | 2,955,440 | |||||
| (1)Assets and liabilities related to the sale of Tennessee and northwest Georgia banking operations were classified as held for sale as of December 31, 2018. | |||||||||||
| Atlantic Capital Bancshares, Inc. | |||||||||||||||||||||||||||||||||
| Consolidated Statements of Income (unaudited) | |||||||||||||||||||||||||||||||||
| (in thousands except share and per share data) | Three months ended | Years ended | |||||||||||||||||||||||||||||||
| December 31, 2019 | September 30, 2019 | June 30, 2019 | March 31, 2019 | December 31, 2018 | December 31, 2019 | December 31, 2018 | |||||||||||||||||||||||||||
| INTEREST INCOME | |||||||||||||||||||||||||||||||||
| Loans, including fees | $ | 23,175 | $ | 23,541 | $ | 23,554 | $ | 22,752 | $ | 22,752 | $ | 93,022 | $ | 80,110 | |||||||||||||||||||
| Investment securities | 2,413 | 2,176 | 2,339 | 2,631 | 2,844 | 9,559 | 10,912 | ||||||||||||||||||||||||||
| Interest and dividends on other interest‑earning assets | 944 | 803 | 705 | 814 | 1,032 | 3,266 | 3,738 | ||||||||||||||||||||||||||
| Total interest income | 26,532 | 26,520 | 26,598 | 26,197 | 26,628 | 105,847 | 94,760 | ||||||||||||||||||||||||||
| INTEREST EXPENSE | |||||||||||||||||||||||||||||||||
| Interest on deposits | 4,890 | 5,223 | 5,448 | 4,831 | 4,185 | 20,392 | 12,506 | ||||||||||||||||||||||||||
| Interest on Federal Home Loan Bank advances | 157 | 390 | 270 | – | 487 | 817 | 2,399 | ||||||||||||||||||||||||||
| Interest on federal funds purchased and securities sold under | |||||||||||||||||||||||||||||||||
| agreements to repurchase | 94 | 99 | 168 | 118 | 60 | 479 | 304 | ||||||||||||||||||||||||||
| Interest on long-term debt | 824 | 824 | 823 | 824 | 828 | 3,295 | 3,304 | ||||||||||||||||||||||||||
| Total interest expense | 5,965 | 6,536 | 6,709 | 5,773 | 5,560 | 24,983 | 18,513 | ||||||||||||||||||||||||||
| NET INTEREST INCOME BEFORE PROVISION FOR LOAN LOSSES | 20,567 | 19,984 | 19,889 | 20,424 | 21,068 | 80,864 | 76,247 | ||||||||||||||||||||||||||
| Provision for loan losses | 787 | 413 | 698 | 814 | 502 | 2,712 | 1,946 | ||||||||||||||||||||||||||
| NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES | 19,780 | 19,571 | 19,191 | 19,610 | 20,566 | 78,152 | 74,301 | ||||||||||||||||||||||||||
| NONINTEREST INCOME | |||||||||||||||||||||||||||||||||
| Service charges | 998 | 925 | 870 | 794 | 876 | 3,587 | 3,215 | ||||||||||||||||||||||||||
| Gains (losses) on sale of securities | – | 253 | 654 | – | (1,853 | ) | 907 | (1,855 | ) | ||||||||||||||||||||||||
| Gains (losses) on sale of other assets | – | 140 | (10 | ) | (3 | ) | – | 127 | (154 | ) | |||||||||||||||||||||||
| Trust income | – | – | – | – | – | – | 1,025 | ||||||||||||||||||||||||||
| Derivatives income (loss) | 315 | (293 | ) | (233 | ) | (111 | ) | 154 | (322 | ) | 308 | ||||||||||||||||||||||
| Bank owned life insurance | 375 | 422 | 389 | 360 | 380 | 1,546 | 1,506 | ||||||||||||||||||||||||||
| SBA lending activities | 846 | 1,150 | 1,096 | 1,086 | 425 | 4,178 | 3,606 | ||||||||||||||||||||||||||
| Gain on sale of trust company | – | – | – | – | – | – | 1,681 | ||||||||||||||||||||||||||
| Other noninterest income | 145 | 172 | 175 | 210 | 182 | 702 | 715 | ||||||||||||||||||||||||||
| Total noninterest income | 2,679 | 2,769 | 2,941 | 2,336 | 164 | 10,725 | 10,047 | ||||||||||||||||||||||||||
| NONINTEREST EXPENSE | |||||||||||||||||||||||||||||||||
| Salaries and employee benefits | 8,500 | 8,295 | 8,529 | 9,213 | 7,573 | 34,537 | 31,766 | ||||||||||||||||||||||||||
| Occupancy | 838 | 722 | 689 | 639 | 655 | 2,888 | 2,972 | ||||||||||||||||||||||||||
| Equipment and software | 769 | 842 | 753 | 739 | 783 | 3,103 | 2,817 | ||||||||||||||||||||||||||
| Professional services | 577 | 764 | 792 | 775 | 947 | 2,908 | 3,511 | ||||||||||||||||||||||||||
| Postage, printing and supplies | 28 | 32 | 29 | 48 | 30 | 137 | 166 | ||||||||||||||||||||||||||
| Communications and data processing | 1,066 | 796 | 662 | 675 | 772 | 3,199 | 2,676 | ||||||||||||||||||||||||||
| Marketing and business development | 143 | 243 | 233 | 226 | 224 | 845 | 710 | ||||||||||||||||||||||||||
| FDIC premiums | – | (193 | ) | 175 | 235 | 157 | 217 | 562 | |||||||||||||||||||||||||
| Other noninterest expense | 1,461 | 1,176 | 1,392 | 1,245 | 1,067 | 5,274 | 4,811 | ||||||||||||||||||||||||||
| Total noninterest expense | 13,382 | 12,677 | 13,254 | 13,795 | 12,208 | 53,108 | 49,991 | ||||||||||||||||||||||||||
| INCOME FROM CONTINUING OPERATIONS BEFORE PROVISION FOR INCOME TAXES | 9,077 | 9,663 | 8,878 | 8,151 | 8,522 | 35,769 | 34,357 | ||||||||||||||||||||||||||
| Provision for income taxes | 1,937 | 2,094 | 1,869 | 1,711 | 1,039 | 7,611 | 6,307 | ||||||||||||||||||||||||||
| NET INCOME FROM CONTINUING OPERATIONS | 7,140 | 7,569 | 7,009 | 6,440 | 7,483 | 28,158 | 28,050 | ||||||||||||||||||||||||||
| DISCONTINUED OPERATIONS | |||||||||||||||||||||||||||||||||
| Income (loss) from discontinued operations | $ | – | $ | – | $ | 30,107 | $ | (1,417 | ) | $ | 1,796 | $ | 28,690 | $ | 643 | ||||||||||||||||||
| Provision (benefit) for income taxes | – | (617 | ) | 7,964 | (354 | ) | 449 | 6,993 | 161 | ||||||||||||||||||||||||
| Net income (loss) from discontinued operations | – | 617 | 22,143 | (1,063 | ) | 1,347 | 21,697 | 482 | |||||||||||||||||||||||||
| NET INCOME | $ | 7,140 | $ | 8,186 | $ | 29,152 | $ | 5,377 | $ | 8,830 | $ | 49,855 | $ | 28,532 | |||||||||||||||||||
| Net Income (Loss) per Common Share ‑ Basic | |||||||||||||||||||||||||||||||||
| Net income per common share - continuing operations | $ | 0.33 | $ | 0.33 | $ | 0.29 | $ | 0.26 | $ | 0.29 | $ | 1.21 | $ | 1.08 | |||||||||||||||||||
| Net income (loss) per common share - discontinued operations | – | 0.03 | 0.93 | (0.04 | ) | 0.05 | 0.93 | 0.02 | |||||||||||||||||||||||||
| Net Income per Common Share ‑ Basic | 0.33 | 0.36 | 1.22 | 0.22 | 0.34 | 2.14 | 1.10 | ||||||||||||||||||||||||||
| Net Income (Loss) per Common Share ‑ Diluted | |||||||||||||||||||||||||||||||||
| Net income per common share - continuing operations | $ | 0.32 | $ | 0.33 | $ | 0.29 | $ | 0.26 | $ | 0.29 | $ | 1.20 | $ | 1.07 | |||||||||||||||||||
| Net income (loss) per common share - discontinued operations | – | 0.03 | 0.92 | (0.04 | ) | 0.05 | 0.92 | 0.02 | |||||||||||||||||||||||||
| Net Income per Common Share ‑ Diluted | 0.32 | 0.36 | 1.21 | 0.21 | 0.34 | 2.12 | 1.09 | ||||||||||||||||||||||||||
| Weighted average shares - basic | 21,876,487 | 22,681,904 | 23,888,381 | 24,855,171 | 25,919,445 | 23,315,562 | 25,947,038 | ||||||||||||||||||||||||||
| Weighted average shares - diluted | 22,053,907 | 22,837,531 | 24,040,806 | 25,019,384 | 26,043,799 | 23,478,001 | 26,111,755 | ||||||||||||||||||||||||||
ATLANTIC CAPITAL BANCSHARES, INC.
Average Balance Sheets and Net Interest Margin Analysis
Selected Financial Information
| Three months ended | ||||||||||||||||
| December 31, 2019 | September 30, 2019 | |||||||||||||||
| (dollars in thousands; taxable equivalent) | Average Balance | Interest Income/Expense | Tax Equivalent Yield/Rate | Average Balance | Interest Income/Expense | Tax Equivalent Yield/Rate | ||||||||||
| Assets Interest bearing deposits in other banks | $ | 174,589 | $ | 733 | 1.67 | % | $ | 103,954 | $ | 564 | 2.15 | % | ||||
| Other short-term investments | - | - | 0.00 | % | - | - | 0.00 | % | ||||||||
| Investment securities: | ||||||||||||||||
| Taxable investment securities | 242,175 | 1,570 | 2.57 | % | 257,005 | 1,657 | 2.56 | % | ||||||||
| Non-taxable investment securities(1) | 147,492 | 1,010 | 2.72 | % | 83,867 | 623 | 2.95 | % | ||||||||
| Total investment securities | 389,667 | 2,580 | 2.63 | % | 340,872 | 2,280 | 2.65 | % | ||||||||
| Loans - continuing operations | 1,857,736 | 23,175 | 4.95 | % | 1,801,629 | 23,541 | 5.18 | % | ||||||||
| FHLB and FRB stock | 14,106 | 211 | 5.93 | % | 15,524 | 239 | 6.11 | % | ||||||||
| Total interest-earning assets | 2,436,098 | 26,699 | 4.35 | % | 2,261,979 | 26,624 | 4.67 | % | ||||||||
| Non-earning assets | 190,290 | 191,459 | ||||||||||||||
| Total assets | $ | 2,626,388 | $ | 2,453,438 | ||||||||||||
| Liabilities Interest bearing deposits: NOW, money market, and savings | 1,328,184 | 4,525 | 1.35 | % | 1,191,293 | 4,642 | 1.55 | % | ||||||||
| Time deposits | 37,388 | 52 | 0.55 | % | 32,409 | 51 | 0.62 | % | ||||||||
| Brokered deposits | 62,757 | 313 | 1.98 | % | 88,146 | 530 | 2.39 | % | ||||||||
| Total interest-bearing deposits | 1,428,329 | 4,890 | 1.36 | % | 1,311,848 | 5,223 | 1.58 | % | ||||||||
| Total borrowings | 54,706 | 252 | 1.83 | % | 85,478 | 489 | 2.27 | % | ||||||||
| Total long-term debt | 49,845 | 823 | 6.55 | % | 49,803 | 824 | 6.56 | % | ||||||||
| Total interest-bearing liabilities | 1,532,880 | 5,965 | 1.54 | % | 1,447,129 | 6,536 | 1.79 | % | ||||||||
| Demand deposits | 718,297 | 637,809 | ||||||||||||||
| Other liabilities | 47,668 | 36,209 | ||||||||||||||
| Shareholders' equity | 327,543 | 332,291 | ||||||||||||||
| Total liabilities and shareholders' equity | $ | 2,626,388 | $ | 2,453,438 | ||||||||||||
| Net interest spread | 2.80 | % | 2.88 | % | ||||||||||||
| Net interest income and net interest margin(2) | $ | 20,734 | 3.38 | % | $ | 20,088 | 3.52 | % | ||||||||
| Non-taxable equivalent net interest margin | 3.35 | % | 3.51 | % | ||||||||||||
(1) Interest revenue on tax-exempt securities has been increased to reflect comparable interest on taxable securities. The rate used was 21%, reflecting the statutory federal income tax rate.
(2) Tax equivalent net interest income divided by total interest-earning assets using the appropriate day count convention based on the type of interest-earning asset.
| ATLANTIC CAPITAL BANCSHARES, INC. | |||||||||||||||||||
| Average Balance Sheets and Net Interest Margin Analysis | |||||||||||||||||||
| Selected Financial Information | |||||||||||||||||||
| Three months ended | |||||||||||||||||||
| December 31, 2019 | December 31, 2018 | ||||||||||||||||||
| (dollars in thousands; taxable equivalent) | Average Balance | Interest Income/Expense | Tax Equivalent Yield/Rate | Average Balance | Interest Income/Expense | Tax Equivalent Yield/Rate | |||||||||||||
| Assets | |||||||||||||||||||
| Interest bearing deposits in other banks | $ | 174,589 | $ | 733 | 1.67 | % | $ | 111,988 | $ | 638 | 2.26 | % | |||||||
| Other short-term investments | - | - | 0.00 | % | 19,078 | 142 | 2.95 | % | |||||||||||
| Investment securities: | |||||||||||||||||||
| Taxable investment securities | 242,175 | 1,570 | 2.57 | % | 376,163 | 2,362 | 2.49 | % | |||||||||||
| Non-taxable investment securities(1) | 147,492 | 1,010 | 2.72 | % | 74,302 | 579 | 3.09 | % | |||||||||||
| Total investment securities | 389,667 | 2,580 | 2.63 | % | 450,465 | 2,941 | 2.59 | % | |||||||||||
| Loans - continuing operations | 1,857,736 | 23,175 | 4.95 | % | 1,699,801 | 22,752 | 5.31 | % | |||||||||||
| FHLB and FRB stock | 14,106 | 211 | 5.93 | % | 15,985 | 252 | 6.25 | % | |||||||||||
| Total interest-earning assets - continuing operations | 2,436,098 | 26,699 | 4.35 | % | 2,297,317 | 26,725 | 4.62 | % | |||||||||||
| Loans held for sale - discontinued operations | - | - | 0.00 | % | 377,052 | 4,509 | 4.74 | % | |||||||||||
| Total interest-earning assets | 2,436,098 | 26,699 | 4.35 | % | 2,674,369 | 31,234 | 4.63 | % | |||||||||||
| Non-earning assets | 190,290 | 216,958 | |||||||||||||||||
| Total assets | $ | 2,626,388 | $ | 2,891,327 | |||||||||||||||
| Liabilities | |||||||||||||||||||
| Interest bearing deposits: | |||||||||||||||||||
| NOW, money market, and savings | 1,328,184 | 4,525 | 1.35 | % | 1,079,178 | 3,601 | 1.32 | % | |||||||||||
| Time deposits | 37,388 | 52 | 0.55 | % | 10,116 | 33 | 1.29 | % | |||||||||||
| Brokered deposits | 62,757 | 313 | 1.98 | % | 93,558 | 551 | 2.34 | % | |||||||||||
| Total interest-bearing deposits | 1,428,329 | 4,890 | 1.36 | % | 1,182,852 | 4,185 | 1.40 | % | |||||||||||
| Total borrowings | 54,706 | 252 | 1.83 | % | 91,155 | 547 | 2.38 | % | |||||||||||
| Total long-term debt | 49,845 | 823 | 6.55 | % | 49,677 | 828 | 6.61 | % | |||||||||||
| Total interest-bearing liabilities - continuing operations | 1,532,880 | 5,965 | 1.54 | % | 1,323,684 | 5,560 | 1.67 | % | |||||||||||
| Interest-bearing liabilities - discontinued operations | - | - | 0.00 | % | 472,162 | 1,284 | 1.08 | % | |||||||||||
| Total interest-bearing liabilities | 1,532,880 | 5,965 | 1.54 | % | 1,795,846 | 6,844 | 1.51 | % | |||||||||||
| Demand deposits | 718,297 | 597,240 | |||||||||||||||||
| Demand deposits - discontinued operations | - | 135,774 | |||||||||||||||||
| Other liabilities | 47,668 | 41,120 | |||||||||||||||||
| Shareholders' equity | 327,543 | 321,347 | |||||||||||||||||
| Total liabilities and shareholders' equity | $ | 2,626,388 | $ | 2,891,327 | |||||||||||||||
| Net interest spread - continuing operations | 2.80 | % | 2.95 | % | |||||||||||||||
| Net interest income and net interest margin - continuing operations(2) | $ | 20,734 | 3.38 | % | $ | 21,165 | 3.66 | % | |||||||||||
| Net interest income and net interest margin(2) | $ | 20,734 | 3.38 | % | $ | 24,390 | 3.62 | % | |||||||||||
| Non-taxable equivalent net interest margin | 3.35 | % | 3.60 | % | |||||||||||||||
| (1) Interest revenue on tax-exempt securities has been increased to reflect comparable interest on taxable securities. The rate used was 21%, reflecting the statutory federal income tax rate. | |||||||||||||||||||
| (2) Tax equivalent net interest income divided by total interest-earning assets using the appropriate day count convention based on the type of interest-earning asset. | |||||||||||||||||||
| ATLANTIC CAPITAL BANCSHARES, INC. | |||||||||||||||||||||
| Average Balance Sheets and Net Interest Margin Analysis | |||||||||||||||||||||
| Selected Financial Information | |||||||||||||||||||||
| Twelve months ended December 31, | |||||||||||||||||||||
| 2019 | 2018 | ||||||||||||||||||||
| (dollars in thousands; taxable equivalent) | Average Balance | Interest Income/Expense | Tax Equivalent Yield/Rate | Average Balance | Interest Income/Expense | Tax Equivalent Yield/Rate | |||||||||||||||
| Assets | |||||||||||||||||||||
| Interest bearing deposits in other banks | $ | 110,543 | $ | 2,209 | 2.00 | % | $ | 104,145 | $ | 2,244 | 2.15 | % | |||||||||
| Other short-term investments | 3,875 | 118 | 3.05 | % | 15,210 | 426 | 2.80 | % | |||||||||||||
| Investment securities: | |||||||||||||||||||||
| Taxable investment securities | 274,189 | 7,188 | 2.62 | % | 379,035 | 9,005 | 2.38 | % | |||||||||||||
| Non-taxable investment securities(1) | 98,367 | 2,830 | 2.88 | % | 76,064 | 2,302 | 3.03 | % | |||||||||||||
| Total investment securities | 372,556 | 10,018 | 2.69 | % | 455,099 | 11,307 | 2.48 | % | |||||||||||||
| Loans - continuing operations | 1,769,613 | 93,022 | 5.26 | % | 1,599,916 | 80,110 | 5.01 | % | |||||||||||||
| FHLB and FRB stock | 14,156 | 939 | 6.63 | % | 17,710 | 1,068 | 6.03 | % | |||||||||||||
| Total interest-earning assets - continuing operations | 2,270,743 | 106,306 | 4.68 | % | 2,192,080 | 95,155 | 4.34 | % | |||||||||||||
| Loans held for sale - discontinued operations | 116,725 | 4,588 | 3.93 | % | 377,098 | 18,224 | 4.83 | % | |||||||||||||
| Total interest-earning assets | 2,387,468 | 110,894 | 4.64 | % | 2,569,178 | 113,379 | 4.41 | % | |||||||||||||
| Non-earning assets | 198,960 | 211,393 | |||||||||||||||||||
| Total assets | $ | 2,586,428 | $ | 2,780,571 | |||||||||||||||||
| Liabilities | |||||||||||||||||||||
| Interest bearing deposits: | |||||||||||||||||||||
| NOW, money market, and savings | 1,107,765 | 18,155 | 1.64 | % | 1,001,025 | 10,627 | 1.06 | % | |||||||||||||
| Time deposits | 23,072 | 191 | 0.83 | % | 10,046 | 115 | 1.14 | % | |||||||||||||
| Brokered deposits | 84,601 | 2,046 | 2.42 | % | 84,105 | 1,764 | 2.10 | % | |||||||||||||
| Total interest-bearing deposits | 1,215,438 | 20,392 | 1.68 | % | 1,095,176 | 12,506 | 1.14 | % | |||||||||||||
| Total borrowings | 54,931 | 1,297 | 2.36 | % | 139,422 | 2,703 | 1.94 | % | |||||||||||||
| Total long-term debt | 49,782 | 3,294 | 6.62 | % | 49,613 | 3,304 | 6.66 | % | |||||||||||||
| Total interest-bearing liabilities - continuing operations | 1,320,151 | 24,983 | 1.89 | % | 1,284,211 | 18,513 | 1.44 | % | |||||||||||||
| Interest-bearing liabilities - discontinued operations | 144,064 | 1,502 | 1.04 | % | 467,101 | 4,084 | 0.87 | % | |||||||||||||
| Total interest-bearing liabilities | 1,464,215 | 26,485 | 1.81 | % | 1,751,312 | 22,597 | 1.29 | % | |||||||||||||
| Demand deposits | 589,862 | 538,110 | |||||||||||||||||||
| Demand deposits - discontinued operations | 39,253 | 137,905 | |||||||||||||||||||
| Other liabilities | 162,882 | 37,991 | |||||||||||||||||||
| Shareholders' equity | 330,216 | 315,253 | |||||||||||||||||||
| Total liabilities and shareholders' equity | $ | 2,586,428 | $ | 2,780,571 | |||||||||||||||||
| Net interest spread - continuing operations | 2.79 | % | 2.90 | % | |||||||||||||||||
| Net interest income and net interest margin - continuing operations(2) | $ | 81,323 | 3.58 | % | $ | 76,642 | 3.50 | % | |||||||||||||
| Net interest income and net interest margin(2) | $ | 84,409 | 3.54 | % | $ | 90,782 | 3.53 | % | |||||||||||||
| Non-taxable equivalent net interest margin | 3.52 | % | 3.52 | % | |||||||||||||||||
| (1) Interest revenue on tax-exempt securities has been increased to reflect comparable interest on taxable securities. The rate used was 21%, reflecting the statutory federal income tax rate. | |||||||||||||||||||||
| (2) Tax equivalent net interest income divided by total interest-earning assets using the appropriate day count convention based on the type of interest-earning asset. | |||||||||||||||||||||
| ATLANTIC CAPITAL BANCSHARES, INC. | ||||||||||||||||||||||||||||
| Period End Loans | ||||||||||||||||||||||||||||
| (dollars in thousands) | December 31, 2019 | September 30, 2019 | June 30, 2019 | March 31, 2019 | December 31, 2018 | Linked Quarter Change | Year Over Year Change | |||||||||||||||||||||
| Loans held for sale | ||||||||||||||||||||||||||||
| Loans held for sale | $ | 370 | $ | 916 | $ | - | $ | 1,530 | $ | 5,889 | $ | (546 | ) | $ | (5,519 | ) | ||||||||||||
| Loans held for sale - discontinued operations | - | - | - | 384,779 | 373,030 | - | (373,030 | ) | ||||||||||||||||||||
| Total loans held for sale | $ | 370 | $ | 916 | $ | - | $ | 386,309 | $ | 378,919 | $ | (546 | ) | $ | (378,549 | ) | ||||||||||||
| Loans held for investment | ||||||||||||||||||||||||||||
| Commercial loans: | ||||||||||||||||||||||||||||
| Commercial and industrial | $ | 705,115 | $ | 697,412 | $ | 701,566 | $ | 679,489 | $ | 645,374 | $ | 7,703 | $ | 59,741 | ||||||||||||||
| Commercial real estate: | ||||||||||||||||||||||||||||
| Multifamily | 98,378 | 60,398 | 43,907 | 43,929 | 88,826 | 37,980 | 9,552 | |||||||||||||||||||||
| Owner occupied | 357,912 | 352,842 | 313,310 | 304,945 | 298,291 | 5,070 | 59,621 | |||||||||||||||||||||
| Investment | 460,038 | 452,285 | 409,629 | 394,087 | 407,711 | 7,753 | 52,327 | |||||||||||||||||||||
| Construction and land: | - | |||||||||||||||||||||||||||
| 1-4 family residential construction | 4,009 | 5,186 | 3,696 | 2,067 | 1,006 | (1,177 | ) | 3,003 | ||||||||||||||||||||
| Other construction, development, and land | 123,531 | 139,991 | 195,260 | 171,818 | 155,226 | (16,460 | ) | (31,695 | ) | |||||||||||||||||||
| Mortgage warehouse loans | 13,941 | 23,256 | 10,665 | 22,267 | 27,967 | (9,315 | ) | (14,026 | ) | |||||||||||||||||||
| Total commercial loans | 1,762,924 | 1,731,370 | 1,678,033 | 1,618,602 | 1,624,401 | 31,554 | 138,523 | |||||||||||||||||||||
| Residential: | ||||||||||||||||||||||||||||
| Residential mortgages | 31,315 | 31,903 | 31,338 | 32,915 | 32,800 | (588 | ) | (1,485 | ) | |||||||||||||||||||
| Home equity | 25,002 | 25,638 | 24,303 | 23,171 | 22,822 | (636 | ) | 2,180 | ||||||||||||||||||||
| Total residential loans | 56,317 | 57,541 | 55,641 | 56,086 | 55,622 | (1,224 | ) | 695 | ||||||||||||||||||||
| Consumer | 37,765 | 27,168 | 34,618 | 35,203 | 25,851 | 10,597 | 11,914 | |||||||||||||||||||||
| Other | 19,552 | 22,533 | 24,126 | 26,663 | 24,712 | (2,981 | ) | (5,160 | ) | |||||||||||||||||||
| 1,876,558 | 1,838,612 | 1,792,418 | 1,736,554 | 1,730,586 | 37,946 | 145,972 | ||||||||||||||||||||||
| Less net deferred fees and other unearned income | (3,034 | ) | (2,939 | ) | (2,678 | ) | (1,997 | ) | (2,513 | ) | (95 | ) | (521 | ) | ||||||||||||||
| Total loans held for investment | $ | 1,873,524 | $ | 1,835,673 | $ | 1,789,740 | $ | 1,734,557 | $ | 1,728,073 | $ | 37,851 | $ | 145,451 | ||||||||||||||
| Total loans | $ | 1,873,894 | $ | 1,836,589 | $ | 1,789,740 | $ | 2,120,866 | $ | 2,106,992 | $ | 37,305 | $ | (233,098 | ) | |||||||||||||
| ATLANTIC CAPITAL BANCSHARES, INC. | |||||||||||||||||||||
| Allowance for Loan Losses Activity and Credit Quality | |||||||||||||||||||||
| 2019 | 2018 | ||||||||||||||||||||
(dollars in thousands) | Fourth Quarter | Third Quarter | Second Quarter | First Quarter | Fourth Quarter | ||||||||||||||||
| Balance at beginning of period | $ | 18,080 | $ | 18,186 | $ | 18,107 | $ | 17,851 | $ | 20,443 | |||||||||||
| Provision for loan losses | 787 | 413 | 698 | 814 | 595 | ||||||||||||||||
| Provision for loan losses (reversal of provision) - discontinued operations | – | – | – | – | (3,097 | ) | |||||||||||||||
| Provision for PCI loan losses | – | – | – | – | (93 | ) | |||||||||||||||
| Loans charged-off: | |||||||||||||||||||||
| Commercial and industrial | (344 | ) | (541 | ) | (588 | ) | (549 | ) | – | ||||||||||||
| Commercial real estate | – | – | (47 | ) | – | – | |||||||||||||||
| Construction and land | – | – | – | – | – | ||||||||||||||||
| Residential mortgages | – | – | – | (9 | ) | (5 | ) | ||||||||||||||
| Home equity | – | – | – | – | – | ||||||||||||||||
| Consumer | – | (2 | ) | – | (37 | ) | (3 | ) | |||||||||||||
| Other | – | – | – | – | – | ||||||||||||||||
| Total loans charged-off | (344 | ) | (543 | ) | (635 | ) | (595 | ) | (8 | ) | |||||||||||
| Recoveries on loans previously charged-off: | |||||||||||||||||||||
| Commercial and industrial | 5 | 17 | – | 14 | – | ||||||||||||||||
| Commercial real estate | – | – | – | – | – | ||||||||||||||||
| Construction and land | – | 1 | – | 3 | – | ||||||||||||||||
| Residential mortgages | 7 | – | – | 7 | 4 | ||||||||||||||||
| Home equity | – | – | – | 1 | – | ||||||||||||||||
| Consumer | – | 6 | 16 | 12 | 7 | ||||||||||||||||
| Other | – | – | – | – | – | ||||||||||||||||
| Total recoveries | 12 | 24 | 16 | 37 | 11 | ||||||||||||||||
| Net charge-offs | (332 | ) | (519 | ) | (619 | ) | (558 | ) | 3 | ||||||||||||
| Balance at period end | $ | 18,535 | $ | 18,080 | $ | 18,186 | $ | 18,107 | $ | 17,851 | |||||||||||
| Loans | |||||||||||||||||||||
| Loans held for sale | $ | 370 | $ | 916 | $ | – | $ | 1,530 | $ | 5,889 | |||||||||||
| Loans held for sale - discontinued operations | – | – | – | 384,779 | 373,030 | ||||||||||||||||
| Loans held for investment - continuing operations | 1,873,524 | 1,835,673 | 1,789,740 | 1,734,557 | 1,728,073 | ||||||||||||||||
| Total loans | $ | 1,873,894 | $ | 1,836,589 | $ | 1,789,740 | $ | 2,120,866 | $ | 2,106,992 | |||||||||||
| Non-performing loans - continuing operations (2) | $ | 7,293 | $ | 6,770 | $ | 6,352 | $ | 8,830 | $ | 3,252 | |||||||||||
| Non-performing loans - discontinued operations | – | – | – | 1,506 | 1,924 | ||||||||||||||||
| Total non-performing loans | 7,293 | 6,770 | 6,352 | 10,336 | 5,176 | ||||||||||||||||
| Foreclosed properties (OREO) | 278 | 278 | 971 | 971 | 874 | ||||||||||||||||
| Total nonperforming assets | $ | 7,571 | $ | 7,048 | $ | 7,323 | $ | 11,307 | $ | 6,050 | |||||||||||
| Allowance for loan losses to loans held for investment | 0.99 | % | 0.98 | % | 1.02 | % | 1.04 | % | 1.03 | % | |||||||||||
| Net charge-offs to average loans (1) | 0.07 | 0.11 | 0.14 | 0.11 | – | ||||||||||||||||
| Non-performing loans as a percentage of total loans - continuing operations (2) | 0.39 | 0.37 | 0.35 | 0.51 | 0.19 | ||||||||||||||||
| Non-performing loans as a percentage of total loans - discontinued operations (2) | – | – | – | 0.39 | 0.52 | ||||||||||||||||
| Non-performing loans as a percentage of total loans (2) | 0.39 | 0.37 | 0.35 | 0.49 | 0.25 | ||||||||||||||||
| Non-performing assets as a percentage of total assets - continuing operations (2) | 0.26 | 0.29 | 0.31 | 0.34 | 0.14 | ||||||||||||||||
| Non-performing assets as a percentage of total assets - discontinued operations (2) | – | – | – | 0.05 | 0.07 | ||||||||||||||||
| Non-performing assets as a percentage of total assets (2) | 0.26 | 0.29 | 0.31 | 0.40 | 0.20 | ||||||||||||||||
(1) Annualized. (2) The third quarter of 2019, second quarter of 2019, first quarter of 2019 and fourth quarter of 2018 ratios are calculated on a continuing operations basis. | |||||||||||||||||||||
| ATLANTIC CAPITAL BANCSHARES, INC. | |||||||||||||||||||||||||||
| Period End Deposits | |||||||||||||||||||||||||||
| (dollars in thousands) | December 31, 2019 | September 30, 2019 | June 30, 2019 | March 31, 2019 | December 31, 2018 | Linked Quarter Change | Year Over Year Change | ||||||||||||||||||||
| DDA | $ | 824,646 | $ | 599,657 | $ | 569,693 | $ | 561,829 | $ | 602,252 | $ | 224,989 | $ | 222,394 | |||||||||||||
| NOW | 373,727 | 240,427 | 309,709 | 233,838 | 252,490 | 133,300 | 121,237 | ||||||||||||||||||||
| Savings | 1,219 | 1,081 | 1,090 | 896 | 725 | 138 | 494 | ||||||||||||||||||||
| Money market | 1,173,218 | 921,133 | 802,973 | 962,741 | 987,183 | 252,085 | 186,035 | ||||||||||||||||||||
| Time | 44,389 | 30,782 | 33,902 | 22,069 | 10,623 | 13,607 | 33,766 | ||||||||||||||||||||
| Brokered | 81,847 | 61,192 | 134,164 | 65,811 | 99,241 | 20,655 | (17,394 | ) | |||||||||||||||||||
| Total deposits - continuing operations | 2,499,046 | 1,854,272 | 1,851,531 | 1,847,184 | 1,952,514 | 644,774 | 546,532 | ||||||||||||||||||||
| Deposits to be assumed - discontinued operations | – | – | – | 593,264 | 585,429 | – | (585,429 | ) | |||||||||||||||||||
| Total deposits | $ | 2,499,046 | $ | 1,854,272 | $ | 1,851,531 | $ | 2,440,448 | $ | 2,537,943 | $ | 644,774 | $ | (38,897 | ) | ||||||||||||
| Payments clients | $ | 567,597 | $ | 286,373 | $ | 301,413 | $ | 361,192 | $ | 397,608 | $ | 281,224 | $ | 169,989 | |||||||||||||
| Average Deposits | |||||||||||||||||||||||||||
| 2019 | 2018 | ||||||||||||||||||||||||||
| (dollars in thousands) | Fourth Quarter | Third Quarter | Second Quarter | First Quarter | Fourth Quarter | Linked Quarter Change | Q4 2019 vs Q4 2018 | ||||||||||||||||||||
| DDA | $ | 718,298 | $ | 637,809 | $ | 587,957 | $ | 575,453 | $ | 597,239 | $ | 80,489 | $ | 121,059 | |||||||||||||
| NOW | 320,637 | 295,106 | 314,601 | 276,212 | 280,449 | 25,531 | 40,188 | ||||||||||||||||||||
| Savings | 1,098 | 1,085 | 956 | 884 | 712 | 13 | 386 | ||||||||||||||||||||
| Money market | 1,006,449 | 895,102 | 859,680 | 847,254 | 798,017 | 111,347 | 208,432 | ||||||||||||||||||||
| Time | 37,388 | 32,409 | 32,358 | 12,847 | 10,117 | 4,979 | 27,271 | ||||||||||||||||||||
| Brokered | 62,757 | 88,146 | 106,524 | 81,141 | 93,558 | (25,389 | ) | (30,801 | ) | ||||||||||||||||||
| Total deposits - continuing operations | 2,146,627 | 1,949,657 | 1,902,076 | 1,793,791 | 1,780,092 | 196,970 | 366,535 | ||||||||||||||||||||
| Deposits to be assumed - discontinued operations | - | - | 45,350 | 593,313 | 600,769 | - | (600,769 | ) | |||||||||||||||||||
| Total deposits | $ | 2,146,627 | $ | 1,949,657 | $ | 1,947,426 | $ | 2,387,104 | $ | 2,380,861 | $ | 196,970 | $ | (234,234 | ) | ||||||||||||
| Payments clients | $ | 362,327 | $ | 289,526 | $ | 285,949 | $ | 295,059 | $ | 263,800 | $ | 72,801 | $ | 98,527 | |||||||||||||
| Noninterest bearing deposits as a percentage | |||||||||||||||||||||||||||
| of average deposits - continuing operations | 33.5 | % | 32.7 | % | 30.9 | % | 32.1 | % | 33.6 | % | |||||||||||||||||
| Cost of deposits - continuing operations | 0.90 | % | 1.06 | % | 1.15 | % | 1.09 | % | 0.93 | % | |||||||||||||||||
| ATLANTIC CAPITAL BANCSHARES, INC. | |||||||||||||||||||||||||||
| Non-GAAP Performance and Financial Measures Reconciliation | |||||||||||||||||||||||||||
| (in thousands, except share and per share data) | 2019 | 2018 | For the year ended December 31, | ||||||||||||||||||||||||
| Fourth Quarter | Third Quarter | Second Quarter | First Quarter | Fourth Quarter | 2019 | 2018 | |||||||||||||||||||||
| Taxable equivalent interest income reconciliation | |||||||||||||||||||||||||||
| Interest income - GAAP | $ | 26,532 | $ | 26,520 | $ | 26,598 | $ | 26,197 | $ | 26,628 | $ | 105,847 | $ | 94,760 | |||||||||||||
| Taxable equivalent adjustment | 167 | 104 | 88 | 100 | 97 | 459 | 395 | ||||||||||||||||||||
| Interest income - taxable equivalent | $ | 26,699 | $ | 26,624 | $ | 26,686 | $ | 26,297 | $ | 26,725 | $ | 106,306 | $ | 95,155 | |||||||||||||
| Taxable equivalent net interest income reconciliation - continuing operations | |||||||||||||||||||||||||||
| Net interest income - GAAP | $ | 20,567 | $ | 19,984 | $ | 19,889 | $ | 20,424 | $ | 21,068 | $ | 80,864 | $ | 76,247 | |||||||||||||
| Taxable equivalent adjustment | 167 | 104 | 88 | 100 | 97 | 459 | 395 | ||||||||||||||||||||
| Net interest income - taxable equivalent - continuing operations | $ | 20,734 | $ | 20,088 | $ | 19,977 | $ | 20,524 | $ | 21,165 | $ | 81,323 | $ | 76,642 | |||||||||||||
| Taxable equivalent net interest margin reconciliation - continuing operations | |||||||||||||||||||||||||||
| Net interest margin - GAAP - continuing operations | 3.35 | % | 3.51 | % | 3.60 | % | 3.72 | % | 3.64 | % | 3.52 | % | 3.48 | % | |||||||||||||
| Impact of taxable equivalent adjustment | 0.03 | % | 0.01 | % | 0.01 | % | 0.02 | % | 0.02 | % | 0.06 | % | 0.02 | % | |||||||||||||
| Net interest margin - taxable equivalent - continuing operations | 3.38 | % | 3.52 | % | 3.61 | % | 3.74 | % | 3.66 | % | 3.58 | % | 3.50 | % | |||||||||||||
| Taxable equivalent net interest margin reconciliation | |||||||||||||||||||||||||||
| Net interest margin - GAAP | 3.35 | % | 3.51 | % | 3.54 | % | 3.66 | % | 3.60 | % | 3.52 | % | 3.52 | % | |||||||||||||
| Impact of taxable equivalent adjustment | 0.03 | % | 0.01 | % | 0.02 | % | 0.02 | % | 0.02 | % | 0.02 | % | 0.01 | % | |||||||||||||
| Net interest margin - taxable equivalent | 3.38 | % | 3.52 | % | 3.56 | % | 3.68 | % | 3.62 | % | 3.54 | % | 3.53 | % | |||||||||||||
| Income before income taxes reconciliation | |||||||||||||||||||||||||||
| Income before income taxes - GAAP | $ | 9,077 | $ | 9,663 | $ | 8,878 | $ | 8,151 | $ | 8,522 | $ | 35,769 | $ | 34,357 | |||||||||||||
| Taxable equivalent adjustment | 167 | 104 | 88 | 100 | 97 | 459 | 395 | ||||||||||||||||||||
| Income before income taxes | $ | 9,244 | $ | 9,767 | $ | 8,966 | $ | 8,251 | $ | 8,619 | $ | 36,228 | $ | 34,752 | |||||||||||||
| Income tax reconciliation | |||||||||||||||||||||||||||
| Income tax expense - GAAP | $ | 1,937 | $ | 2,094 | $ | 1,869 | $ | 1,711 | $ | 1,039 | $ | 7,611 | $ | 6,307 | |||||||||||||
| Taxable equivalent adjustment | 167 | 104 | 88 | 100 | 97 | 459 | 395 | ||||||||||||||||||||
| Income tax expense | $ | 2,104 | $ | 2,198 | $ | 1,957 | $ | 1,811 | $ | 1,136 | $ | 8,070 | $ | 6,702 | |||||||||||||
| Tangible book value per common share reconciliation | |||||||||||||||||||||||||||
| Total shareholders’ equity | $ | 326,495 | $ | 328,711 | $ | 336,715 | $ | 320,627 | $ | 323,653 | $ | 326,495 | $ | 323,653 | |||||||||||||
| Intangible assets | (19,925 | ) | (19,925 | ) | (19,925 | ) | (22,848 | ) | (23,095 | ) | (19,925 | ) | (23,095 | ) | |||||||||||||
| Total tangible common equity | $ | 306,570 | $ | 308,786 | $ | 316,790 | $ | 297,779 | $ | 300,558 | $ | 306,570 | $ | 300,558 | |||||||||||||
| Common shares outstanding | 21,751,026 | 22,193,761 | 23,293,465 | 24,466,964 | 25,290,419 | 21,751,026 | 25,290,419 | ||||||||||||||||||||
| Book value per common share - GAAP | $ | 15.01 | $ | 14.81 | $ | 14.46 | $ | 13.10 | $ | 12.80 | $ | 15.01 | $ | 12.80 | |||||||||||||
| Tangible book value | 14.09 | 13.91 | 13.60 | 12.17 | 11.88 | 14.09 | 11.88 | ||||||||||||||||||||
| Tangible common equity to tangible assets reconciliation | |||||||||||||||||||||||||||
| Total shareholders’ equity | $ | 326,495 | $ | 328,711 | $ | 336,715 | $ | 320,627 | $ | 323,653 | $ | 326,495 | $ | 323,653 | |||||||||||||
| Intangible assets | (19,925 | ) | (19,925 | ) | (19,925 | ) | (22,848 | ) | (23,095 | ) | (19,925 | ) | (23,095 | ) | |||||||||||||
| Total tangible common equity | $ | 306,570 | $ | 308,786 | $ | 316,790 | $ | 297,779 | $ | 300,558 | $ | 306,570 | $ | 300,558 | |||||||||||||
| Total assets | $ | 2,910,379 | $ | 2,410,198 | $ | 2,389,680 | $ | 2,855,887 | $ | 2,955,440 | $ | 2,910,379 | $ | 2,955,440 | |||||||||||||
| Intangible assets | (19,925 | ) | (19,925 | ) | (19,925 | ) | (22,848 | ) | (23,095 | ) | (19,925 | ) | (23,095 | ) | |||||||||||||
| Total tangible assets | $ | 2,890,454 | $ | 2,390,273 | $ | 2,369,755 | $ | 2,833,039 | $ | 2,932,345 | $ | 2,890,454 | $ | 2,932,345 | |||||||||||||
| Tangible common equity to tangible assets | 10.61 | % | 12.92 | % | 13.37 | % | 10.51 | % | 10.25 | % | 10.61 | % | 10.25 | % | |||||||||||||