ATLANTA, Oct. 27, 2021 (GLOBE NEWSWIRE) -- Atlantic Capital Bancshares, Inc. (NASDAQ: ACBI) announced net income for the quarter ended September 30, 2021, of $13.3 million, or $0.65 per diluted share, compared to $8.6 million, or $0.40 per diluted share, for the third quarter of 2020 and $11.8 million, or $0.58 per diluted share, for the second quarter of 2021.
“With strong growth in loans, deposits, and revenue, Atlantic Capital recorded another quarter of solid operating results. Our clients are performing well, and Atlantic Capital is fueling their prosperity with reliable service and innovative solutions. New business pipelines are robust, and we expect continued strong momentum in the fourth quarter of this year and into 2022,” remarked Douglas Williams, President and Chief Executive Officer.
Third Quarter Highlights(1)
- Total assets were $4.2 billion, compared to $3.8 billion at June 30, 2021 and $2.9 billion at September 30, 2020.
- Return on average assets totaled 1.36% and return on average equity was 14.69% in the third quarter of 2021.
- Loans held for investment, excluding Paycheck Protection Program (“PPP”) loans, increased $66.3 million, or 12.3% annualized, from June 30, 2021, and increased $269.4 million, or 13.8%, from September 30, 2020.
- Quarterly average deposits increased $106.3 million, or 12.9% annualized, compared to the second quarter of 2021 and increased $941.7 million, or 38.1%, compared to the third quarter of 2020.
- Cost of deposits decreased to 0.08% from 0.10% in the second quarter of 2021 and from 0.19% in the third quarter of 2020.
- Tangible book value per share increased to $16.94 from $16.40 at June 30, 2021 and from $15.11 at September 30, 2020.
- Annualized net charge-offs to average loans totaled 0.00% for the third quarter of 2021 and 0.05% for the full year 2021. Non-performing assets to total assets were 0.10% at September 30, 2021.
- The allowance for credit losses was 1.16% of total loans held for investment at September 30, 2021, compared to 1.27% at June 30, 2021 and 1.59% at September 30, 2020.
Income Statement
Taxable equivalent net interest income totaled $25.1 million for the third quarter of 2021, compared to $22.1 million in the third quarter of 2020 and $26.0 million in the second quarter of 2021. The third quarter of 2021 included $1.9 million in PPP loan income, compared to $3.0 million in the second quarter of 2021. The second quarter of 2021 also included $671,000 in interest income related to the receipt of an investment prepayment penalty and the accelerated accretion of a loan discount upon payoff.
Taxable equivalent net interest margin was 2.69% in the third quarter of 2021, compared to 3.14% in the third quarter of 2020 and 2.91% in the second quarter of 2021. The taxable equivalent net interest margin excluding PPP loans was 2.54% for the third quarter of 2021, compared to 2.70% for the second quarter of 2021.
The yield on loans in the third quarter of 2021 was 3.91%, an increase of 9 basis points from the third quarter of 2020 and a decrease of 28 basis points from the second quarter of 2021. Excluding PPP loans, the third quarter of 2021 loan yield was 3.71%, a decrease of 24 basis points compared to the second quarter of 2021. In addition, loan interest income for the second quarter of 2021 included $405,000 in previously mentioned accelerated discount accretion.
The cost of deposits in the third quarter of 2021 was 0.08%, a decrease of 11 basis points from the third quarter of 2020 and a decrease of 2 basis points from the second quarter of 2021. The cost of interest-bearing deposits decreased 13 basis points to 0.15% from the third quarter of 2020 and decreased 2 basis points from the second quarter of 2021.
In the third quarter of 2021, we recorded a negative provision for credit losses of $2.4 million, compared to a provision for credit losses of $28,000 in the third quarter of 2020 and a negative provision for credit losses of $933,000 in the second quarter of 2021.
Noninterest income totaled $4.6 million in the third quarter of 2021, compared to $2.5 million in the third quarter of 2020 and $3.6 million in the second quarter of 2021. Other noninterest income in the third quarter of 2021 totaled $1.1 million and included $930,000 in income from Small Business Investment Company (“SBIC”) funds.
Noninterest expense totaled $15.0 million in the third quarter of 2021, compared to $13.7 million in the third quarter of 2020 and $15.2 million in the second quarter of 2021. The third quarter of 2021 included an expense reduction of $3.0 million as a result of the employee retention payroll tax credit pursuant to the CARES Act. Additionally, there were $2.9 million in merger related expenses.
(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 13.
Balance Sheet
Total loans held for investment were $2.3 billion at September 30, 2021, an increase of $85.8 million from September 30, 2020 and an increase of $9.0 million from June 30, 2021. Loans held for investment, excluding PPP loans, increased $66.3 million, or 12.3% annualized, from June 30, 2021, and increased $269.4 million, or 13.8%, from September 30, 2020.
The allowance for credit losses was 1.16% of total loans held for investment at September 30, 2021, compared to 1.27% at June 30, 2021. The decrease in the allowance was a result of an improvement in our current expected credit losses, or CECL, economic forecast along with credit rating upgrades for certain criticized and classified loans. Excluding the impact of PPP loans, the allowance for credit losses at September 30, 2021 was 1.18%, compared to 1.33% at June 30, 2021.
Total average deposits were $3.4 billion for the third quarter of 2021, an increase of $941.7 million, or 38.1%, from the third quarter of 2020 and an increase of $106.3 million, or 12.9% annualized, from the second quarter of 2021. Average noninterest bearing deposits were $1.4 billion for the third quarter of 2021, an increase of $520.4 million, or 61%, from the third quarter of 2020 and an increase of $79.4 million, or 24.5% annualized, from the second quarter of 2021. Noninterest bearing deposits were 40.3% of total average deposits in the third quarter of 2021, compared to 34.6% in the third quarter of 2020 and 39.2% in the second quarter of 2021.
Merger Update
On July 22, 2021, Atlantic Capital and SouthState Corporation (“SouthState”) entered into an Agreement and Plan of Merger, pursuant to which Atlantic Capital will merge with and into SouthState, with SouthState as the surviving corporation in the merger. The merger remains subject to approval by our shareholders at the Special Meeting scheduled for November 16, 2021, as well as approval by the Board of Governors of the Federal Reserve System. Approval of the merger from the Office of the Comptroller of the Currency has been received.
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) loans held for investment excluding PPP loans; (iv) loan yield excluding PPP loans; (v) taxable equivalent net interest margin; (vi) taxable equivalent net interest margin excluding PPP loans; (vii) taxable equivalent income before income taxes; (viii) taxable equivalent income tax expense; (ix) tangible common equity to tangible assets; (x) tangible book value per share, and (xi) allowance for credit losses to loans held for investment excluding PPP loans, in our analysis of the Company's performance. Tangible common equity excludes goodwill 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,” “strive,” or words or phases of similar meaning. Forward-looking statements may include, among other things, statements about the proposed merger with SouthState, Atlantic Capital’s confidence in its strategies and its expectations about financial performance, the impact of COVID-19 on operations, 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. Additional information and other factors that could affect future financial results are included in Atlantic Capital’s subsequent filings with the SEC. Please refer to the SEC’s website at www.sec.gov where you can review those documents.
Important Additional Information
SouthState filed a registration statement on Form S-4 with the SEC on September 15, 2021, to register the shares of SouthState common stock that will be issued to Atlantic Capital’s shareholders in connection with the merger. The registration statement, which became effective on October 15, 2021, includes a proxy statement/prospectus and other relevant materials in connection with the transaction. BEFORE MAKING ANY VOTING OR INVESTMENT DECISION, INVESTORS AND SECURITY HOLDERS ARE URGED TO READ THE PROXY STATEMENT/PROSPECTUS REGARDING THE MERGER AND ANY OTHER RELEVANT DOCUMENTS CAREFULLY IN THEIR ENTIRETY BECAUSE THEY CONTAIN IMPORTANT INFORMATION ABOUT THE MERGER. Investors and security holders may obtain free copies of these documents and other documents filed with the SEC on its website at http://www.sec.gov. Investors and security holders may also obtain free copies of the documents filed with the SEC by Atlantic Capital on our website at www.atlanticcapitalbank.com and by SouthState on its website at www.southstatebank.com.
This press release does not constitute an offer to sell or the solicitation of an offer to buy any securities or a solicitation of any vote or approval. Before making any voting or investment decision, investors and security holders of Atlantic Capital and SouthState are urged to read carefully the entire registration statement and proxy statement/prospectus, including any amendments thereto, because they contain important information about the merger. Free copies of these documents may be obtained as described above.
Participants in the Merger
Atlantic Capital and SouthState, and certain of their respective directors, executive officers and other members of management and employees, may be deemed to be participants in the solicitation of proxies from Atlantic Capital’s shareholders in respect of the merger. Information regarding such persons who may be deemed participants in the solicitation of proxies from Atlantic Capital’s shareholders is included in the proxy statement/prospectus for Atlantic Capital’s meeting of shareholders, which was filed by SouthState on Form S-4 on September 15, 2021 and declared effective on October 15, 2021. Information about Atlantic Capital’s directors and executive officers and their ownership of Atlantic Capital common stock can also be found in definitive proxy statement filed in connection with its 2021 annual meeting of shareholders on May 20, 2021, and other documents subsequently filed by Atlantic Capital with the SEC. Information about SouthState’s directors and executive officers and their ownership of SouthState common stock can also be found in SouthState’s definitive proxy statement filed in connection with its 2021 annual meeting of shareholders on April 28, 2021, and other documents subsequently filed by SouthState with the SEC. Information regarding the interests of such participants is included in the proxy statement/prospectus and other relevant documents regarding the merger filed with the SEC.
About Atlantic Capital Bancshares
Atlantic Capital Bancshares, Inc. is a $4.2 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 payments and other specialized financial services for select clients nationally.
Media Contact:
Ashley Carson
Email: ashley.carson@atlcapbank.com
Phone: 404-995-6050
(ACB-ER)
Financial Contact:
Patrick Oakes
Email: patrick.oakes@atlcapbank.com
Phone: 404-995-6050
| ATLANTIC CAPITAL BANCSHARES, INC. | ||||||||||||||||||||||||||||
| Selected Financial Information | ||||||||||||||||||||||||||||
| For the nine months ended | ||||||||||||||||||||||||||||
| 2021 | 2020 | September 30, | ||||||||||||||||||||||||||
| (in thousands, except share and per share data; | Third | Second | First | Fourth | Third | |||||||||||||||||||||||
| taxable equivalent) | Quarter | Quarter | Quarter | Quarter | Quarter | 2021 | 2020 | |||||||||||||||||||||
| INCOME SUMMARY | ||||||||||||||||||||||||||||
| Interest income - taxable equivalent (1) | $ | 27,040 | $ | 27,993 | $ | 25,775 | $ | 25,288 | $ | 24,578 | $ | 80,808 | $ | 74,976 | ||||||||||||||
| Interest expense | 1,895 | 1,958 | 2,065 | 2,299 | 2,515 | 5,918 | 9,724 | |||||||||||||||||||||
| Net interest income - taxable equivalent | 25,145 | 26,035 | 23,710 | 22,989 | 22,063 | 74,890 | 65,252 | |||||||||||||||||||||
| Provision for credit losses | (2,405 | ) | (933 | ) | (4,519 | ) | 481 | 28 | (7,857 | ) | 16,965 | |||||||||||||||||
| Net interest income after provision for credit losses | 27,550 | 26,968 | 28,229 | 22,508 | 22,035 | 82,747 | 48,287 | |||||||||||||||||||||
| Noninterest income | 4,609 | 3,584 | 3,562 | 3,016 | 2,504 | 11,755 | 7,269 | |||||||||||||||||||||
| Noninterest expense | 15,018 | 15,197 | 15,149 | 13,164 | 13,713 | 45,364 | 39,494 | |||||||||||||||||||||
| Income before income taxes | 17,141 | 15,355 | 16,642 | 12,360 | 10,826 | 49,138 | 16,062 | |||||||||||||||||||||
| Income tax expense | 3,837 | 3,539 | 3,280 | 2,410 | 2,208 | 10,656 | 3,471 | |||||||||||||||||||||
| Net income(1)(2) | $ | 13,304 | $ | 11,816 | $ | 13,362 | $ | 9,950 | $ | 8,618 | $ | 38,482 | $ | 12,591 | ||||||||||||||
| PER SHARE DATA | ||||||||||||||||||||||||||||
| Diluted earnings per share | $ | 0.65 | $ | 0.58 | $ | 0.65 | $ | 0.48 | $ | 0.40 | $ | 1.88 | $ | 0.58 | ||||||||||||||
| Book value per share | 17.92 | 17.38 | 16.72 | 16.60 | 16.05 | 17.92 | 16.05 | |||||||||||||||||||||
| Tangible book value per common share (3) | 16.94 | 16.40 | 15.74 | 15.62 | 15.11 | 16.94 | 15.11 | |||||||||||||||||||||
| PERFORMANCE MEASURES | ||||||||||||||||||||||||||||
| Return on average equity | 14.69 | % | 13.60 | % | 15.99 | % | 11.68 | % | 10.05 | % | 14.74 | % | 4.98 | % | ||||||||||||||
| Return on average assets | 1.36 | 1.26 | 1.50 | 1.19 | 1.15 | 1.37 | 0.59 | |||||||||||||||||||||
| Taxable equivalent net interest margin | 2.69 | 2.91 | 2.81 | 2.91 | 3.14 | 2.80 | 3.25 | |||||||||||||||||||||
| Taxable equivalent net interest margin excluding PPP loans | 2.54 | 2.70 | 2.70 | 2.81 | 3.18 | 2.65 | 3.31 | |||||||||||||||||||||
| Efficiency ratio | 51.12 | 51.97 | 56.30 | 51.30 | 56.61 | 53.04 | 55.16 | |||||||||||||||||||||
| Average loans to average deposits | 65.81 | 67.54 | 71.93 | 76.81 | 88.65 | 68.32 | 87.07 | |||||||||||||||||||||
| CAPITAL | ||||||||||||||||||||||||||||
| Average equity to average assets | 9.23 | % | 9.24 | % | 9.39 | % | 10.18 | % | 11.45 | % | 9.28 | % | 11.78 | % | ||||||||||||||
| Tangible common equity to tangible assets | 8.21 | 8.86 | 8.63 | 8.86 | 11.03 | 8.21 | 11.03 | |||||||||||||||||||||
| Leverage ratio | 8.50 | (3) | 8.4 | 8.4 | 8.9 | 9.9 | 8.73 | (3) | 9.9 | |||||||||||||||||||
| Total risk based capital ratio | 15.91 | (3) | 16.0 | 16.4 | 16.1 | 16.9 | 15.91 | (3) | 16.9 | |||||||||||||||||||
| SHARES OUTSTANDING | ||||||||||||||||||||||||||||
| Number of common shares outstanding - basic | 20,305,109 | 20,319,429 | 20,354,077 | 20,394,912 | 21,202,783 | 20,305,109 | 21,202,783 | |||||||||||||||||||||
| Number of common shares outstanding - diluted | 20,590,747 | 20,595,812 | 20,617,188 | 20,492,542 | 21,298,098 | 20,590,747 | 21,298,098 | |||||||||||||||||||||
| Average number of common shares - basic | 20,308,761 | 20,332,503 | 20,380,066 | 20,711,089 | 21,500,735 | 20,340,182 | 21,553,953 | |||||||||||||||||||||
| Average number of common shares - diluted | 20,507,604 | 20,516,478 | 20,502,184 | 20,795,332 | 21,543,805 | 20,508,775 | 21,640,057 | |||||||||||||||||||||
| ASSET QUALITY | ||||||||||||||||||||||||||||
| Allowance for credit losses to loans held for investment | 1.16 | % | 1.27 | % | 1.31 | % | 1.55 | % | 1.59 | % | 1.16 | % | 1.59 | % | ||||||||||||||
| Net charge-offs to average loans (4) | 0.00 | 0.10 | 0.04 | 0.05 | 0.06 | 0.05 | 0.13 | |||||||||||||||||||||
| Non-performing assets to total assets | 0.10 | 0.14 | 0.06 | 0.13 | 0.20 | 0.10 | 0.20 | |||||||||||||||||||||
| AVERAGE BALANCES | ||||||||||||||||||||||||||||
| Total loans | $ | 2,246,529 | $ | 2,233,906 | $ | 2,270,660 | $ | 2,207,956 | $ | 2,191,669 | $ | 2,250,277 | $ | 2,071,673 | ||||||||||||||
| Investment securities | 733,452 | 656,507 | 579,547 | 491,134 | 453,382 | 657,066 | 444,766 | |||||||||||||||||||||
| Total assets | 3,893,049 | 3,771,970 | 3,611,417 | 3,328,719 | 2,977,444 | 3,759,841 | 2,865,884 | |||||||||||||||||||||
| Deposits | 3,413,882 | 3,307,601 | 3,156,906 | 2,874,402 | 2,472,218 | 3,293,738 | 2,379,235 | |||||||||||||||||||||
| Shareholders' equity | 359,300 | 348,416 | 338,990 | 338,948 | 341,017 | 348,974 | 337,521 | |||||||||||||||||||||
| AT PERIOD END | ||||||||||||||||||||||||||||
| Loans and loans held for sale | $ | 2,285,670 | $ | 2,264,899 | $ | 2,302,661 | $ | 2,249,036 | $ | 2,188,894 | $ | 2,285,670 | $ | 2,188,894 | ||||||||||||||
| Investment securities | 772,987 | 714,065 | 613,236 | 535,579 | 446,706 | 772,987 | 446,706 | |||||||||||||||||||||
| Total assets | 4,210,316 | 3,780,445 | 3,732,668 | 3,615,617 | 2,923,977 | 4,210,316 | 2,923,977 | |||||||||||||||||||||
| Deposits | 3,727,321 | 3,306,224 | 3,277,692 | 3,161,508 | 2,468,722 | 3,727,321 | 2,468,722 | |||||||||||||||||||||
| Shareholders’ equity | 363,925 | 353,185 | 340,328 | 338,586 | 340,309 | 363,925 | 340,309 | |||||||||||||||||||||
| (1)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. | ||||||||||||||||||||||||||||
| (2)Excludes effect of acquisition related intangibles. | ||||||||||||||||||||||||||||
| (3)Amounts are estimates as of September 30, 2021. | ||||||||||||||||||||||||||||
| (4)Annualized. | ||||||||||||||||||||||||||||
| ATLANTIC CAPITAL BANCSHARES, INC. | ||||||||||||||||
| Consolidated Balance Sheets (unaudited) | ||||||||||||||||
| September 30, | June 30, | December 31, | September 30, | |||||||||||||
| (in thousands, except share data) | 2021 | 2021 | 2020 | 2020 | ||||||||||||
| ASSETS | ||||||||||||||||
| Cash and due from banks | $ | 25,725 | $ | 35,530 | $ | 16,865 | $ | 22,715 | ||||||||
| Interest-bearing deposits in banks | 811,168 | 593,195 | 636,537 | 91,243 | ||||||||||||
| Other short-term investments | 140,848 | — | — | — | ||||||||||||
| Cash and cash equivalents | 977,741 | 628,725 | 653,402 | 113,958 | ||||||||||||
| Investment securities available for sale | 535,158 | 480,518 | 335,423 | 260,884 | ||||||||||||
| Investment securities held to maturity, net of allowance for credit losses of $13, $13, $14, and $15 at September 30,2021, June 30, 2021, December 31, 2020 and September 30, 2020, respectively | 237,829 | 233,547 | 200,156 | 185,822 | ||||||||||||
| Other investments | 23,877 | 24,293 | 25,892 | 26,315 | ||||||||||||
| Loans held for sale | 11,814 | — | — | 859 | ||||||||||||
| Loans held for investment | 2,273,856 | 2,264,899 | 2,249,036 | 2,188,035 | ||||||||||||
| Less: allowance for loan losses | (23,924 | ) | (26,123 | ) | (31,818 | ) | (31,894 | ) | ||||||||
| Loans held for investment, net | 2,249,932 | 2,238,776 | 2,217,218 | 2,156,141 | ||||||||||||
| Premises and equipment, net | 18,517 | 19,643 | 21,589 | 22,558 | ||||||||||||
| Bank owned life insurance | 74,000 | 73,610 | 72,856 | 67,489 | ||||||||||||
| Goodwill | 19,925 | 19,925 | 19,925 | 19,925 | ||||||||||||
| Other intangibles, net | 2,573 | 2,637 | 2,731 | 2,685 | ||||||||||||
| Other real estate owned | — | 16 | 16 | 563 | ||||||||||||
| Other assets | 58,950 | 58,755 | 66,409 | 66,778 | ||||||||||||
| Total assets | $ | 4,210,316 | $ | 3,780,445 | $ | 3,615,617 | $ | 2,923,977 | ||||||||
| LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||||||||||||||
| Deposits: | ||||||||||||||||
| Noninterest-bearing demand | $ | 1,691,616 | $ | 1,374,018 | $ | 1,033,765 | $ | 843,656 | ||||||||
| Interest-bearing checking | 721,525 | 536,677 | 760,638 | 387,858 | ||||||||||||
| Savings | 800 | 676 | 625 | 568 | ||||||||||||
| Money market | 930,929 | 1,026,239 | 1,030,753 | 945,834 | ||||||||||||
| Time | 287,865 | 283,656 | 241,328 | 196,343 | ||||||||||||
| Brokered deposits | 94,586 | 84,958 | 94,399 | 94,463 | ||||||||||||
| Total deposits | 3,727,321 | 3,306,224 | 3,161,508 | 2,468,722 | ||||||||||||
| Long-term debt | 74,024 | 73,953 | 73,807 | 73,814 | ||||||||||||
| Other liabilities | 45,046 | 47,083 | 41,716 | 41,132 | ||||||||||||
| Total liabilities | 3,846,391 | 3,427,260 | 3,277,031 | 2,583,668 | ||||||||||||
| SHAREHOLDERS’ EQUITY | ||||||||||||||||
| Preferred stock, no par value; 10,000,000 shares authorized; no shares issued and outstanding as of September 30, 2021, June 30, 2021, December 31, 2020 and September 30, 2020 | — | — | — | — | ||||||||||||
| Common stock, no par value; 100,000,000 shares authorized; 20,305,109, 20,319,429, 20,394,912, and 21,202,783 shares issued and outstanding as of September 30, 2021, June 30, 2021, December 31, 2020 and September 30, 2020, respectively | 207,214 | 206,619 | 209,942 | 220,643 | ||||||||||||
| Retained earnings | 152,619 | 139,315 | 114,137 | 104,188 | ||||||||||||
| Accumulated other comprehensive income | 4,092 | 7,251 | 14,507 | 15,478 | ||||||||||||
| Total shareholders’ equity | 363,925 | 353,185 | 338,586 | 340,309 | ||||||||||||
| TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY | $ | 4,210,316 | $ | 3,780,445 | $ | 3,615,617 | $ | 2,923,977 | ||||||||
| ATLANTIC CAPITAL BANCSHARES, INC. | ||||||||||||||||||||||||||||
| Consolidated Statements of Income (unaudited) | ||||||||||||||||||||||||||||
| (in thousands, except share and per share data) | Three months ended | Nine months ended | ||||||||||||||||||||||||||
| September 30, | June 30, | March 31, | December 31, | September 30, | September 30, | September 30, | ||||||||||||||||||||||
| 2021 | 2021 | 2021 | 2020 | 2020 | 2021 | 2020 | ||||||||||||||||||||||
| INTEREST INCOME | ||||||||||||||||||||||||||||
| Loans, including fees | $ | 22,151 | $ | 23,352 | $ | 21,769 | $ | 21,609 | $ | 21,049 | $ | 67,272 | $ | 63,971 | ||||||||||||||
| Investment securities | 3,920 | 3,900 | 3,374 | 3,000 | 2,910 | 11,194 | 8,683 | |||||||||||||||||||||
| Interest and dividends on other interest‑earning assets | 593 | 366 | 267 | 334 | 274 | 1,226 | 1,399 | |||||||||||||||||||||
| Total interest income | 26,664 | 27,618 | 25,410 | 24,943 | 24,233 | 79,692 | 74,053 | |||||||||||||||||||||
| INTEREST EXPENSE | ||||||||||||||||||||||||||||
| Interest on deposits | 789 | 851 | 971 | 1,188 | 1,151 | 2,611 | 6,632 | |||||||||||||||||||||
| Interest on Federal Home Loan Bank advances | — | — | — | — | 16 | — | 54 | |||||||||||||||||||||
| Interest on federal funds purchased and securities sold under agreements to repurchase | — | — | — | — | 3 | — | 41 | |||||||||||||||||||||
| Interest on long-term debt | 1,106 | 1,107 | 1,094 | 1,111 | 1,345 | 3,307 | 2,997 | |||||||||||||||||||||
| Total interest expense | 1,895 | 1,958 | 2,065 | 2,299 | 2,515 | 5,918 | 9,724 | |||||||||||||||||||||
| NET INTEREST INCOME BEFORE PROVISION FOR CREDIT LOSSES | 24,769 | 25,660 | 23,345 | 22,644 | 21,718 | 73,774 | 64,329 | |||||||||||||||||||||
| Provision for credit losses | (2,405 | ) | (933 | ) | (4,519 | ) | 481 | 28 | (7,857 | ) | 16,965 | |||||||||||||||||
| NET INTEREST INCOME AFTER PROVISION FOR CREDIT LOSSES | 27,174 | 26,593 | 27,864 | 22,163 | 21,690 | 81,631 | 47,364 | |||||||||||||||||||||
| NONINTEREST INCOME | ||||||||||||||||||||||||||||
| Service charges | 1,765 | 1,727 | 1,663 | 1,341 | 1,217 | 5,155 | 3,530 | |||||||||||||||||||||
| Gains (losses) on sale of securities | — | — | 2 | (23 | ) | — | 2 | — | ||||||||||||||||||||
| Gains (losses) on sale of other assets | 38 | — | — | (6 | ) | (145 | ) | 38 | (140 | ) | ||||||||||||||||||
| Derivatives income (loss) | 21 | (7 | ) | 47 | 11 | 10 | 61 | 246 | ||||||||||||||||||||
| Bank owned life insurance | 391 | 388 | 391 | 368 | 363 | 1,170 | 1,092 | |||||||||||||||||||||
| SBA lending activities | 1,276 | 1,231 | 1,225 | 1,015 | 893 | 3,732 | 2,089 | |||||||||||||||||||||
| Other noninterest income | 1,118 | 245 | 234 | 310 | 166 | 1,597 | 452 | |||||||||||||||||||||
| Total noninterest income | 4,609 | 3,584 | 3,562 | 3,016 | 2,504 | 11,755 | 7,269 | |||||||||||||||||||||
| NONINTEREST EXPENSE | ||||||||||||||||||||||||||||
| Salaries and employee benefits | 10,290 | 10,362 | 10,421 | 8,437 | 8,850 | 31,073 | 25,792 | |||||||||||||||||||||
| Employee retention credit | (3,035 | ) | — | — | — | — | (3,035 | ) | — | |||||||||||||||||||
| Occupancy | 756 | 778 | 734 | 767 | 739 | 2,268 | 2,416 | |||||||||||||||||||||
| Equipment and software | 857 | 819 | 774 | 969 | 826 | 2,450 | 2,368 | |||||||||||||||||||||
| Professional services | 737 | 723 | 922 | 686 | 562 | 2,382 | 2,059 | |||||||||||||||||||||
| Communications and data processing | 889 | 869 | 792 | 789 | 757 | 2,550 | 2,324 | |||||||||||||||||||||
| Marketing and business development | 142 | 138 | 108 | 144 | 141 | 388 | 373 | |||||||||||||||||||||
| Travel, meals and entertainment | 91 | 47 | 10 | 14 | 39 | 148 | 213 | |||||||||||||||||||||
| FDIC premiums | 478 | 421 | 275 | 241 | 213 | 1,174 | 388 | |||||||||||||||||||||
| Merger and conversion costs | 2,899 | — | — | — | — | 2,899 | — | |||||||||||||||||||||
| Other noninterest expense | 914 | 1,040 | 1,113 | 1,117 | 1,586 | 3,067 | 3,561 | |||||||||||||||||||||
| Total noninterest expense | 15,018 | 15,197 | 15,149 | 13,164 | 13,713 | 45,364 | 39,494 | |||||||||||||||||||||
| INCOME BEFORE PROVISION FOR INCOME TAXES | 16,765 | 14,980 | 16,277 | 12,015 | 10,481 | 48,022 | 15,139 | |||||||||||||||||||||
| Provision for income taxes | 3,461 | 3,164 | 2,915 | 2,065 | 1,863 | 9,540 | 2,548 | |||||||||||||||||||||
| NET INCOME | $ | 13,304 | $ | 11,816 | $ | 13,362 | $ | 9,950 | $ | 8,618 | $ | 38,482 | $ | 12,591 | ||||||||||||||
| Net income per common share - basic | $ | 0.66 | $ | 0.58 | $ | 0.66 | $ | 0.48 | $ | 0.40 | $ | 1.89 | $ | 0.58 | ||||||||||||||
| Net income per common share - diluted | $ | 0.65 | $ | 0.58 | $ | 0.65 | $ | 0.48 | $ | 0.40 | $ | 1.88 | $ | 0.58 | ||||||||||||||
| Weighted average shares - basic | 20,308,761 | 20,332,503 | 20,380,066 | 20,711,089 | 21,500,735 | 20,340,182 | 21,553,953 | |||||||||||||||||||||
| Weighted average shares - diluted | 20,507,604 | 20,516,478 | 20,502,184 | 20,795,332 | 21,543,805 | 20,508,775 | 21,640,057 | |||||||||||||||||||||
| ATLANTIC CAPITAL BANCSHARES, INC. | ||||||||||||||||||
| Average Balance Sheets and Net Interest Margin Analysis | ||||||||||||||||||
| Selected Financial Information | ||||||||||||||||||
| Three months ended | ||||||||||||||||||
| September 30, 2021 | June 30, 2021 | |||||||||||||||||
| Interest | Tax | Interest | Tax | |||||||||||||||
| Average | Income/ | Equivalent | Average | Income/ | Equivalent | |||||||||||||
| (dollars in thousands; taxable equivalent) | Balance | Expense | Yield/Rate | Balance | Expense | Yield/Rate | ||||||||||||
| Assets | ||||||||||||||||||
| Interest bearing deposits in other banks | $ | 594,338 | $ | 266 | 0.18 | % | $ | 687,795 | $ | 201 | 0.12 | % | ||||||
| Other short-term investments | 122,477 | 156 | 0.51 | — | — | — | ||||||||||||
| Investment securities: | ||||||||||||||||||
| Taxable investment securities | 503,420 | 2,411 | 1.90 | 426,634 | 2,382 | 2.24 | ||||||||||||
| Non-taxable investment securities (1) | 230,032 | 1,885 | 3.25 | 229,873 | 1,893 | 3.30 | ||||||||||||
| Total investment securities | 733,452 | 4,296 | 2.32 | 656,507 | 4,275 | 2.61 | ||||||||||||
| Loans | 2,246,529 | 22,151 | 3.91 | 2,233,906 | 23,352 | 4.19 | ||||||||||||
| FHLB and FRB stock | 11,931 | 171 | 5.69 | 11,931 | 165 | 5.55 | ||||||||||||
| Total interest-earning assets | 3,708,727 | 27,040 | 2.89 | 3,590,139 | 27,993 | 3.13 | ||||||||||||
| Non-earning assets | 184,322 | 181,831 | ||||||||||||||||
| Total assets | $ | 3,893,049 | $ | 3,771,970 | ||||||||||||||
| Liabilities | ||||||||||||||||||
| Interest bearing deposits: | ||||||||||||||||||
| NOW, money market, and savings | 1,665,462 | 680 | 0.16 | 1,637,374 | 725 | 0.18 | ||||||||||||
| Time deposits | 285,808 | 50 | 0.07 | 290,331 | 68 | 0.09 | ||||||||||||
| Brokered deposits | 87,498 | 59 | 0.27 | 84,168 | 58 | 0.28 | ||||||||||||
| Total interest-bearing deposits | 2,038,768 | 789 | 0.15 | 2,011,873 | 851 | 0.17 | ||||||||||||
| Total borrowings | — | — | — | 89 | — | — | ||||||||||||
| Total long-term debt | 73,978 | 1,106 | 5.93 | 73,904 | 1,107 | 6.01 | ||||||||||||
| Total interest-bearing liabilities | 2,112,746 | 1,895 | 0.36 | 2,085,866 | 1,958 | 0.38 | ||||||||||||
| Demand deposits | 1,375,114 | 1,295,728 | ||||||||||||||||
| Other liabilities | 45,889 | 41,960 | ||||||||||||||||
| Shareholders’ equity | 359,300 | 348,416 | ||||||||||||||||
| Total liabilities and shareholders’ equity | $ | 3,893,049 | $ | 3,771,970 | ||||||||||||||
| Net interest spread | 2.53 | % | 2.75 | % | ||||||||||||||
| Net interest income and net interest margin (2) | $ | 25,145 | 2.69 | % | $ | 26,035 | 2.91 | % | ||||||||||
| Non-taxable equivalent net interest margin | 2.65 | % | 2.87 | % | ||||||||||||||
| (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 | ||||||||||||||||||
| September 30, 2021 | September 30, 2020 | |||||||||||||||||
| Interest | Tax | Interest | Tax | |||||||||||||||
| Average | Income/ | Equivalent | Average | Income/ | Equivalent | |||||||||||||
| (dollars in thousands; taxable equivalent) | Balance | Expense | Yield/Rate | Balance | Expense | Yield/Rate | ||||||||||||
| Assets | ||||||||||||||||||
| Interest bearing deposits in other banks | $ | 594,338 | $ | 266 | 0.18 | % | $ | 136,459 | $ | 65 | 0.19 | % | ||||||
| Other short-term investments | 122,477 | 156 | 0.51 | — | — | — | ||||||||||||
| Investment securities: | ||||||||||||||||||
| Taxable investment securities | 503,420 | 2,411 | 1.90 | 237,655 | 1,467 | 2.46 | ||||||||||||
| Non-taxable investment securities (1) | 230,032 | 1,885 | 3.25 | 215,727 | 1,788 | 3.30 | ||||||||||||
| Total investment securities | 733,452 | 4,296 | 2.32 | 453,382 | 3,255 | 2.86 | ||||||||||||
| Loans | 2,246,529 | 22,151 | 3.91 | 2,191,669 | 21,049 | 3.82 | ||||||||||||
| FHLB and FRB stock | 11,931 | 171 | 5.69 | 14,484 | 209 | 5.74 | ||||||||||||
| Total interest-earning assets | 3,708,727 | 27,040 | 2.89 | 2,795,994 | 24,578 | 3.50 | ||||||||||||
| Non-earning assets | 184,322 | 181,450 | ||||||||||||||||
| Total assets | $ | 3,893,049 | $ | 2,977,444 | ||||||||||||||
| Liabilities | ||||||||||||||||||
| Interest bearing deposits: | ||||||||||||||||||
| NOW, money market, and savings | 1,665,462 | 680 | 0.16 | 1,383,382 | 1,006 | 0.29 | ||||||||||||
| Time deposits | 285,808 | 50 | 0.07 | 166,019 | 86 | 0.21 | ||||||||||||
| Brokered deposits | 87,498 | 59 | 0.27 | 68,102 | 59 | 0.34 | ||||||||||||
| Total interest-bearing deposits | 2,038,768 | 789 | 0.15 | 1,617,503 | 1,151 | 0.28 | ||||||||||||
| Total borrowings | — | — | — | 40,793 | 19 | 0.19 | ||||||||||||
| Total long-term debt | 73,978 | 1,106 | 5.93 | 82,708 | 1,345 | 6.47 | ||||||||||||
| Total interest-bearing liabilities | 2,112,746 | 1,895 | 0.36 | 1,741,004 | 2,515 | 0.57 | ||||||||||||
| Demand deposits | 1,375,114 | 854,715 | ||||||||||||||||
| Other liabilities | 45,889 | 40,708 | ||||||||||||||||
| Shareholders’ equity | 359,300 | 341,017 | ||||||||||||||||
| Total liabilities and shareholders’ equity | $ | 3,893,049 | $ | 2,977,444 | ||||||||||||||
| Net interest spread | 2.53 | % | 2.92 | % | ||||||||||||||
| Net interest income and net interest margin (2) | $ | 25,145 | 2.69 | % | $ | 22,063 | 3.14 | % | ||||||||||
| Non-taxable equivalent net interest margin | 2.65 | % | 3.09 | % | ||||||||||||||
| (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 | ||||||||||||||||||
| Nine months ended | ||||||||||||||||||
| September 30, 2021 | September 30, 2020 | |||||||||||||||||
| Interest | Tax | Interest | Tax | |||||||||||||||
| Average | Income/ | Equivalent | Average | Income/ | Equivalent | |||||||||||||
| (dollars in thousands; taxable equivalent) | Balance | Expense | Yield/Rate | Balance | Expense | Yield/Rate | ||||||||||||
| Assets | ||||||||||||||||||
| Interest bearing deposits in other banks | $ | 615,001 | $ | 634 | 0.14 | % | $ | 147,795 | $ | 756 | 0.68 | % | ||||||
| Other short-term investments | 41,274 | 156 | 0.51 | 36 | — | — | ||||||||||||
| Investment securities: | ||||||||||||||||||
| Taxable investment securities | 429,307 | 6,691 | 2.08 | 246,388 | 4,729 | 2.56 | ||||||||||||
| Non-taxable investment securities (1) | 227,759 | 5,619 | 3.30 | 198,378 | 4,877 | 3.28 | ||||||||||||
| Total investment securities | 657,066 | 12,310 | 2.50 | 444,766 | 9,606 | 2.88 | ||||||||||||
| Loans | 2,250,277 | 67,272 | 4.00 | 2,071,673 | 63,971 | 4.12 | ||||||||||||
| FHLB and FRB stock | 12,183 | 436 | 4.78 | 14,667 | 643 | 5.86 | ||||||||||||
| Total interest-earning assets | 3,575,801 | 80,808 | 3.02 | 2,678,937 | 74,976 | 3.74 | ||||||||||||
| Non-earning assets | 184,040 | 186,947 | ||||||||||||||||
| Total assets | $ | 3,759,841 | $ | 2,865,884 | ||||||||||||||
| Liabilities | ||||||||||||||||||
| Interest bearing deposits: | ||||||||||||||||||
| NOW, money market, and savings | 1,654,990 | 2,240 | 0.18 | 1,397,280 | 5,889 | 0.56 | ||||||||||||
| Time deposits | 283,296 | 191 | 0.09 | 106,271 | 196 | 0.25 | ||||||||||||
| Brokered deposits | 85,454 | 180 | 0.28 | 81,125 | 547 | 0.90 | ||||||||||||
| Total interest-bearing deposits | 2,023,740 | 2,611 | 0.17 | 1,584,676 | 6,632 | 0.56 | ||||||||||||
| Total borrowings | 30 | — | — | 50,055 | 95 | 0.25 | ||||||||||||
| Total long-term debt | 73,905 | 3,307 | 5.98 | 60,922 | 2,997 | 6.57 | ||||||||||||
| Total interest-bearing liabilities | 2,097,675 | 5,918 | 0.38 | 1,695,653 | 9,724 | 0.77 | ||||||||||||
| Demand deposits | 1,269,998 | 794,559 | ||||||||||||||||
| Other liabilities | 43,194 | 38,151 | ||||||||||||||||
| Shareholders’ equity | 348,974 | 337,521 | ||||||||||||||||
| Total liabilities and shareholders’ equity | $ | 3,759,841 | $ | 2,865,884 | ||||||||||||||
| Net interest spread | 2.64 | % | 2.97 | % | ||||||||||||||
| Net interest income and net interest margin (2) | $ | 74,890 | 2.80 | % | $ | 65,252 | 3.25 | % | ||||||||||
| Non-taxable equivalent net interest margin | 2.76 | % | 3.21 | % | ||||||||||||||
| (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 | ||||||||||||||||||||||||||||
| Linked | Year Over | |||||||||||||||||||||||||||
| September 30, | June 30, | March 31, | December 31, | September 30, | Quarter | Year | ||||||||||||||||||||||
| (dollars in thousands) | 2021 | 2021 | 2021 | 2020 | 2020 | Change | Change | |||||||||||||||||||||
| Loans held for sale | ||||||||||||||||||||||||||||
| Loans held for sale | $ | 11,814 | $ | — | $ | 1,847 | $ | — | $ | 859 | $ | 11,814 | $ | 10,955 | ||||||||||||||
| Total loans held for sale | $ | 11,814 | $ | — | $ | 1,847 | $ | — | $ | 859 | $ | 11,814 | $ | 10,955 | ||||||||||||||
| Loans held for investment | ||||||||||||||||||||||||||||
| Commercial loans: | ||||||||||||||||||||||||||||
| Commercial and industrial - other | $ | 790,437 | $ | 767,646 | $ | 735,287 | $ | 760,645 | $ | 712,567 | $ | 22,791 | $ | 77,870 | ||||||||||||||
| Commercial and industrial - PPP | 48,304 | 105,684 | 218,766 | 192,160 | 231,834 | (57,380 | ) | (183,530 | ) | |||||||||||||||||||
| Commercial real estate: | ||||||||||||||||||||||||||||
| Multifamily | 62,906 | 58,632 | 80,507 | 66,262 | 58,336 | 4,274 | 4,570 | |||||||||||||||||||||
| Owner occupied | 413,875 | 392,108 | 381,018 | 373,689 | 364,170 | 21,767 | 49,705 | |||||||||||||||||||||
| Investment | 483,538 | 506,230 | 480,566 | 469,150 | 458,279 | (22,692 | ) | 25,259 | ||||||||||||||||||||
| Construction and land: | ||||||||||||||||||||||||||||
| 1‑4 family residential construction | 2,338 | 2,074 | 1,578 | 1,171 | — | 264 | 2,338 | |||||||||||||||||||||
| Other construction, development, and land | 202,810 | 178,423 | 141,218 | 144,424 | 139,836 | 24,387 | 62,974 | |||||||||||||||||||||
| Total commercial loans | 2,004,208 | 2,010,797 | 2,038,940 | 2,007,501 | 1,965,022 | (6,589 | ) | 39,186 | ||||||||||||||||||||
| Residential: | ||||||||||||||||||||||||||||
| Residential mortgages | 47,076 | 45,207 | 31,817 | 33,783 | 29,460 | 1,869 | 17,616 | |||||||||||||||||||||
| Home equity | 28,943 | 24,972 | 26,293 | 25,443 | 24,528 | 3,971 | 4,415 | |||||||||||||||||||||
| Total residential loans | 76,019 | 70,179 | 58,110 | 59,226 | 53,988 | 5,840 | 22,031 | |||||||||||||||||||||
| Consumer | 192,462 | 184,203 | 203,176 | 176,066 | 154,916 | 8,259 | 37,546 | |||||||||||||||||||||
| Other | 4,921 | 5,234 | 7,689 | 13,897 | 22,777 | (313 | ) | (17,856 | ) | |||||||||||||||||||
| 2,277,610 | 2,270,413 | 2,307,915 | 2,256,690 | 2,196,703 | 7,197 | 80,907 | ||||||||||||||||||||||
| Less net deferred fees and other unearned income | (3,754 | ) | (5,514 | ) | (7,101 | ) | (7,654 | ) | (8,668 | ) | 1,760 | 4,914 | ||||||||||||||||
| Total loans held for investment | $ | 2,273,856 | $ | 2,264,899 | $ | 2,300,814 | $ | 2,249,036 | $ | 2,188,035 | $ | 8,957 | $ | 85,821 | ||||||||||||||
| Total loans | $ | 2,285,670 | $ | 2,264,899 | $ | 2,302,661 | $ | 2,249,036 | $ | 2,188,894 | $ | 20,771 | $ | 96,776 | ||||||||||||||
| Total unfunded commitments | $ | 848,642 | $ | 804,784 | $ | 789,869 | $ | 813,757 | $ | 764,247 | $ | 43,858 | $ | 84,395 | ||||||||||||||
| ATLANTIC CAPITAL BANCSHARES, INC. | |||||||||||||||||||||
| Allowance for Credit Losses Activity and Credit Quality | |||||||||||||||||||||
| 2021 | 2020 | ||||||||||||||||||||
| Third | Second | First | Fourth | Third | |||||||||||||||||
| (dollars in thousands) | Quarter | Quarter | Quarter | Quarter | Quarter | ||||||||||||||||
| Allowance for loan losses | |||||||||||||||||||||
| Balance at beginning of period | $ | 26,123 | $ | 27,506 | $ | 31,818 | $ | 31,894 | $ | 31,605 | |||||||||||
| Provision for loan losses | (2,221 | ) | (814 | ) | (4,074 | ) | 225 | 636 | |||||||||||||
| Loans charged-off: | |||||||||||||||||||||
| Commercial and industrial | (131 | ) | (386 | ) | (288 | ) | (401 | ) | (404 | ) | |||||||||||
| Commercial real estate | — | — | — | — | — | ||||||||||||||||
| Construction and land | — | — | — | — | — | ||||||||||||||||
| Residential mortgages | — | (223 | ) | — | — | — | |||||||||||||||
| Home equity | — | — | — | — | — | ||||||||||||||||
| Consumer | — | — | — | — | — | ||||||||||||||||
| Other | — | — | — | — | — | ||||||||||||||||
| Total loans charged-off | (131 | ) | (609 | ) | (288 | ) | (401 | ) | (404 | ) | |||||||||||
| Recoveries on loans previously charged-off: | |||||||||||||||||||||
| Commercial and industrial | 151 | 6 | 50 | 37 | 56 | ||||||||||||||||
| Commercial real estate | — | — | — | 44 | — | ||||||||||||||||
| Construction and land | — | — | — | 18 | — | ||||||||||||||||
| Residential mortgages | — | 32 | — | — | — | ||||||||||||||||
| Home equity | — | — | — | — | — | ||||||||||||||||
| Consumer | 2 | 2 | — | 1 | 1 | ||||||||||||||||
| Other | — | — | — | — | — | ||||||||||||||||
| Total recoveries | 153 | 40 | 50 | 100 | 57 | ||||||||||||||||
| Net charge-offs | $ | 22 | $ | (569 | ) | $ | (238 | ) | $ | (301 | ) | $ | (347 | ) | |||||||
| Balance at period end | $ | 23,924 | $ | 26,123 | $ | 27,506 | $ | 31,818 | $ | 31,894 | |||||||||||
| Allowance for unfunded commitments | |||||||||||||||||||||
| Balance at beginning of period | $ | 2,565 | $ | 2,683 | $ | 3,128 | $ | 2,871 | $ | 3,480 | |||||||||||
| Provision for unfunded commitments | (185 | ) | (118 | ) | (445 | ) | 257 | (609 | ) | ||||||||||||
| Balance at period end | $ | 2,380 | $ | 2,565 | $ | 2,683 | $ | 3,128 | $ | 2,871 | |||||||||||
| Total allowance for credit losses - loans and unfunded commitments | $ | 26,304 | $ | 28,688 | $ | 30,189 | $ | 34,946 | $ | 34,765 | |||||||||||
| Provision for credit losses under CECL | |||||||||||||||||||||
| Provision for loan losses | (2,221 | ) | (814 | ) | (4,074 | ) | 225 | 636 | |||||||||||||
| Provision for securities held to maturity credit losses | 1 | (1 | ) | - | (1 | ) | 1 | ||||||||||||||
| Provision for unfunded commitments | (185 | ) | (118 | ) | (445 | ) | 257 | (609 | ) | ||||||||||||
| Total provision for credit losses | $ | (2,405 | ) | $ | (933 | ) | $ | (4,519 | ) | $ | 481 | $ | 28 | ||||||||
| Non-performing loans | $ | 4,077 | $ | 5,194 | $ | 2,056 | $ | 4,862 | $ | 5,421 | |||||||||||
| Foreclosed properties (OREO) | — | 16 | 16 | 16 | 563 | ||||||||||||||||
| Total nonperforming assets | $ | 4,077 | $ | 5,210 | $ | 2,072 | $ | 4,878 | $ | 5,984 | |||||||||||
| Allowance for loan losses to loans held for investment | 1.05 | % | 1.15 | % | 1.20 | % | 1.41 | % | 1.46 | % | |||||||||||
| Allowance for credit losses to loans held for investment | 1.16 | % | 1.27 | % | 1.31 | % | 1.55 | % | 1.59 | % | |||||||||||
| Allowance for credit losses to loans held for investment excluding PPP loans | 1.18 | % | 1.33 | % | 1.45 | % | 1.70 | % | 1.78 | % | |||||||||||
| Net charge-offs to average loans (1) | 0.00 | 0.10 | 0.04 | 0.05 | 0.06 | ||||||||||||||||
| Non-performing loans as a percentage of total loans | 0.18 | % | 0.23 | % | 0.09 | % | 0.22 | % | 0.25 | % | |||||||||||
| Non-performing assets as a percentage of total assets | 0.10 | % | 0.14 | % | 0.06 | % | 0.13 | % | 0.20 | % | |||||||||||
| (1)Annualized. | |||||||||||||||||||||
| ATLANTIC CAPITAL BANCSHARES, INC. | |||||||||||||||||||||||
| Period End Deposits | |||||||||||||||||||||||
| Linked | |||||||||||||||||||||||
| September 30, | June 30, | March 31, | December 31, | September 30, | Quarter | Year Over | |||||||||||||||||
| (dollars in thousands) | 2021 | 2021 | 2021 | 2020 | 2020 | Change | Year Change | ||||||||||||||||
| DDA | $ | 1,691,616 | $ | 1,374,018 | $ | 1,280,524 | $ | 1,033,765 | $ | 843,656 | $ | 317,598 | $ | 847,960 | |||||||||
| NOW | 721,525 | 536,677 | 485,540 | 760,638 | 387,858 | 184,848 | 333,667 | ||||||||||||||||
| Savings | 800 | 676 | 562 | 625 | 568 | 124 | 232 | ||||||||||||||||
| Money market | 930,929 | 1,026,239 | 1,142,361 | 1,030,753 | 945,834 | (95,310 | ) | (14,905 | ) | ||||||||||||||
| Time | 287,865 | 283,656 | 294,129 | 241,328 | 196,343 | 4,209 | 91,522 | ||||||||||||||||
| Brokered | 94,586 | 84,958 | 74,576 | 94,399 | 94,463 | 9,628 | 123 | ||||||||||||||||
| Total deposits | $ | 3,727,321 | $ | 3,306,224 | $ | 3,277,692 | $ | 3,161,508 | $ | 2,468,722 | $ | 421,097 | $ | 1,258,599 | |||||||||
| Average Deposits | |||||||||||||||||||||||
| 2021 | 2020 | Linked | |||||||||||||||||||||
| Third | Second | First | Fourth | Third | Quarter | Q3 2021 vs | |||||||||||||||||
| (dollars in thousands) | Quarter | Quarter | Quarter | Quarter | Quarter | Change | Q3 2020 | ||||||||||||||||
| DDA | $ | 1,375,114 | $ | 1,295,728 | $ | 1,136,531 | $ | 977,009 | $ | 854,715 | $ | 79,386 | $ | 520,399 | |||||||||
| NOW | 607,485 | 548,358 | 618,701 | 558,967 | 440,734 | 59,127 | $ | 166,751 | |||||||||||||||
| Savings | 731 | 593 | 587 | 614 | 586 | 138 | $ | 145 | |||||||||||||||
| Money market | 1,057,246 | 1,088,423 | 1,042,809 | 1,026,347 | 942,062 | (31,177 | ) | $ | 115,184 | ||||||||||||||
| Time | 285,808 | 290,331 | 273,615 | 221,792 | 166,019 | (4,523 | ) | $ | 119,789 | ||||||||||||||
| Brokered | 87,498 | 84,168 | 84,663 | 89,673 | 68,102 | 3,330 | $ | 19,396 | |||||||||||||||
| Total deposits | $ | 3,413,882 | $ | 3,307,601 | $ | 3,156,906 | $ | 2,874,402 | $ | 2,472,218 | $ | 106,281 | $ | 941,664 | |||||||||
| Noninterest bearing deposits as a percentage of average deposits | 40.3 | % | 39.2 | % | 36.0 | % | 34.0 | % | 34.6 | % | |||||||||||||
| Cost of interest-bearing deposits | 0.15 | % | 0.17 | % | 0.19 | % | 0.25 | % | 0.28 | % | |||||||||||||
| Cost of deposits | 0.08 | % | 0.10 | % | 0.12 | % | 0.16 | % | 0.19 | % | |||||||||||||
| ATLANTIC CAPITAL BANCSHARES, INC. | |||||||||||||||||||||||||||||
| Non-GAAP Performance and Financial Measures Reconciliation | |||||||||||||||||||||||||||||
| For the nine months | |||||||||||||||||||||||||||||
| 2021 | 2020 | ended September 30, | |||||||||||||||||||||||||||
| Third | Second | First | Fourth | Third | |||||||||||||||||||||||||
| (in thousands, except share and per share data) | Quarter | Quarter | Quarter | Quarter | Quarter | 2021 | 2020 | ||||||||||||||||||||||
| Taxable equivalent interest income reconciliation | |||||||||||||||||||||||||||||
| Interest income - GAAP | $ | 26,664 | $ | 27,618 | $ | 25,410 | $ | 24,943 | $ | 24,233 | $ | 79,692 | $ | 74,053 | |||||||||||||||
| Taxable equivalent adjustment | 376 | 375 | 365 | 345 | 345 | 1,116 | 923 | ||||||||||||||||||||||
| Interest income - taxable equivalent | $ | 27,040 | $ | 27,993 | $ | 25,775 | $ | 25,288 | $ | 24,578 | $ | 80,808 | $ | 74,976 | |||||||||||||||
| Taxable equivalent net interest income reconciliation | |||||||||||||||||||||||||||||
| Net interest income - GAAP | $ | 24,769 | $ | 25,660 | $ | 23,345 | $ | 22,644 | $ | 21,718 | $ | 73,774 | $ | 64,329 | |||||||||||||||
| Taxable equivalent adjustment | 376 | 375 | 365 | 345 | 345 | 1,116 | 923 | ||||||||||||||||||||||
| Net interest income - taxable equivalent | $ | 25,145 | $ | 26,035 | $ | 23,710 | $ | 22,989 | $ | 22,063 | $ | 74,890 | $ | 65,252 | |||||||||||||||
| Loan yield excluding PPP loans reconciliation | |||||||||||||||||||||||||||||
| Loan yield - GAAP | 3.91 | % | 4.19 | % | 3.89 | % | 3.89 | % | 3.82 | % | 4.00 | % | 4.12 | % | |||||||||||||||
| Impact of PPP loans | (0.20 | ) | (0.24 | ) | (0.06 | ) | (0.03 | ) | 0.13 | (0.17 | ) | 0.14 | |||||||||||||||||
| Loan yield excluding PPP loans | 3.71 | % | 3.95 | % | 3.83 | % | 3.86 | % | 3.95 | % | 3.83 | % | 4.26 | % | |||||||||||||||
| Taxable equivalent net interest margin reconciliation | |||||||||||||||||||||||||||||
| Net interest margin - GAAP | 2.65 | % | 2.87 | % | 2.76 | % | 2.86 | % | 3.09 | % | 2.76 | % | 3.21 | % | |||||||||||||||
| Impact of taxable equivalent adjustment | 0.04 | 0.04 | 0.05 | 0.05 | 0.05 | 0.04 | 0.04 | ||||||||||||||||||||||
| Net interest margin - taxable equivalent | 2.69 | % | 2.91 | % | 2.81 | % | 2.91 | % | 3.14 | % | 2.80 | % | 3.25 | % | |||||||||||||||
| Taxable equivalent net interest margin excluding PPP loans reconciliation | |||||||||||||||||||||||||||||
| Net interest margin - taxable equivalent | 2.69 | % | 2.91 | % | 2.81 | % | 2.91 | % | 3.14 | % | 2.80 | % | 3.21 | % | |||||||||||||||
| Impact of PPP loans | (0.15 | ) | (0.21 | ) | (0.11 | ) | (0.10 | ) | 0.04 | (0.15 | ) | 0.10 | |||||||||||||||||
| Net interest margin - taxable equivalent excluding PPP loans | 2.54 | % | 2.70 | % | 2.70 | % | 2.81 | % | 3.18 | % | 2.65 | % | 3.31 | % | |||||||||||||||
| Taxable equivalent income before income taxes reconciliation | |||||||||||||||||||||||||||||
| Income before income taxes - GAAP | $ | 16,765 | $ | 14,980 | $ | 16,277 | $ | 12,015 | $ | 10,481 | $ | 48,022 | $ | 15,139 | |||||||||||||||
| Taxable equivalent adjustment | 376 | 375 | 365 | 345 | 345 | 1,116 | 923 | ||||||||||||||||||||||
| Income before income taxes | $ | 17,141 | $ | 15,355 | $ | 16,642 | $ | 12,360 | $ | 10,826 | $ | 49,138 | $ | 16,062 | |||||||||||||||
| Taxable equivalent income tax expense reconciliation | |||||||||||||||||||||||||||||
| Income tax expense - GAAP | $ | 3,461 | $ | 3,164 | $ | 2,915 | $ | 2,065 | $ | 1,863 | $ | 9,540 | $ | 2,548 | |||||||||||||||
| Taxable equivalent adjustment | 376 | 375 | 365 | 345 | 345 | 1,116 | 923 | ||||||||||||||||||||||
| Income tax expense | $ | 3,837 | $ | 3,539 | $ | 3,280 | $ | 2,410 | $ | 2,208 | $ | 10,656 | $ | 3,471 | |||||||||||||||
| Tangible book value per common share reconciliation | |||||||||||||||||||||||||||||
| Total shareholders’ equity | $ | 363,925 | $ | 353,185 | $ | 340,328 | $ | 338,586 | $ | 340,309 | $ | 363,925 | $ | 340,309 | |||||||||||||||
| Intangible assets | (19,925 | ) | (19,925 | ) | (19,925 | ) | (19,925 | ) | (19,925 | ) | (19,925 | ) | (19,925 | ) | |||||||||||||||
| Total tangible common equity | $ | 344,000 | $ | 333,260 | $ | 320,403 | $ | 318,661 | $ | 320,384 | $ | 344,000 | $ | 320,384 | |||||||||||||||
| Common shares outstanding | 20,305,109 | 20,319,429 | 20,354,077 | 20,394,912 | 21,202,783 | 20,305,109 | 21,202,783 | ||||||||||||||||||||||
| Book value per common share - GAAP | $ | 17.92 | $ | 17.38 | $ | 16.72 | $ | 16.60 | $ | 16.05 | $ | 17.92 | $ | 16.05 | |||||||||||||||
| Tangible book value | 16.94 | 16.40 | 15.74 | 15.62 | 15.11 | 16.94 | 15.11 | ||||||||||||||||||||||
| Tangible common equity to tangible assets reconciliation | |||||||||||||||||||||||||||||
| Total shareholders’ equity | $ | 363,925 | $ | 353,185 | $ | 340,328 | $ | 338,586 | $ | 340,309 | $ | 363,925 | $ | 340,309 | |||||||||||||||
| Intangible assets | (19,925 | ) | (19,925 | ) | (19,925 | ) | (19,925 | ) | (19,925 | ) | (19,925 | ) | (19,925 | ) | |||||||||||||||
| Total tangible common equity | $ | 344,000 | $ | 333,260 | $ | 320,403 | $ | 318,661 | $ | 320,384 | $ | 344,000 | $ | 320,384 | |||||||||||||||
| Total assets | $ | 4,210,316 | $ | 3,780,445 | $ | 3,732,668 | $ | 3,615,617 | $ | 2,923,977 | $ | 4,210,316 | $ | 2,923,977 | |||||||||||||||
| Intangible assets | (19,925 | ) | (19,925 | ) | (19,925 | ) | (19,925 | ) | (19,925 | ) | (19,925 | ) | (19,925 | ) | |||||||||||||||
| Total tangible assets | $ | 4,190,391 | $ | 3,760,520 | $ | 3,712,743 | $ | 3,595,692 | $ | 2,904,052 | $ | 4,190,391 | $ | 2,904,052 | |||||||||||||||
| Tangible common equity to tangible assets | 8.21 | % | 8.86 | % | 8.63 | % | 8.86 | % | 11.03 | % | 8.21 | % | 11.03 | % | |||||||||||||||
| Allowance for credit losses to loans held for investment reconciliation | |||||||||||||||||||||||||||||
| Total loans held for investment | $ | 2,273,856 | $ | 2,264,899 | $ | 2,300,814 | $ | 2,249,036 | $ | 2,188,035 | $ | 2,273,856 | $ | 2,188,035 | |||||||||||||||
| PPP loans | (48,304 | ) | (105,684 | ) | (218,766 | ) | (192,160 | ) | (231,834 | ) | (48,304 | ) | (231,834 | ) | |||||||||||||||
| Total loans held for investment excluding PPP loans | $ | 2,225,552 | $ | 2,159,215 | $ | 2,082,048 | $ | 2,056,876 | $ | 1,956,201 | $ | 2,225,552 | $ | 1,956,201 | |||||||||||||||
| Allowance for credit losses to loans held for investment | 1.16 | % | 1.27 | % | 1.31 | % | 1.55 | % | 1.59 | % | 1.16 | % | 1.59 | % | |||||||||||||||
| Allowance for credit losses to loans held for investment excluding PPP loans | 1.18 | % | 1.33 | % | 1.45 | % | 1.70 | % | 1.78 | % | 1.18 | % | 1.78 | % | |||||||||||||||
