Atlantic Capital Bancshares, Inc. Reports Fourth Quarter

ATLANTA, Jan. 24, 2022 (GLOBE NEWSWIRE) -- Atlantic Capital Bancshares, Inc. (NASDAQ: ACBI) announced net income for the quarter ended December 31, 2021, of $11.7 million, or $0.57 per diluted share, compared to $10.0 million, or $0.48 per diluted share, for the fourth quarter of 2020 and $13.3 million, or $0.65 per diluted share, for the third quarter of 2021.

“Atlantic Capital reported another quarter of solid operating results despite disruptions to economic activity from the Omicron variant and historically low interest rates. All of our businesses contributed to these solid results and credit quality remained strong. New business pipelines are robust in all of our businesses and we anticipate carrying strong momentum into our pending merger with SouthState Corporation,” remarked Douglas Williams, President and Chief Executive Officer.

Fourth Quarter Highlights⁽¹⁾

Total assets were $3.8 billion, compared to $4.2 billion at September 30, 2021 and $3.6 billion at December 31, 2020.
Return on average assets totaled 1.19% and return on average equity was 12.52% in the fourth quarter of 2021.
Loans held for investment, excluding Paycheck Protection Program (“PPP”) loans, increased $123.8 million, or 22.2% annualized, from September 30, 2021, and increased $292.4 million, or 14.2%, from December 31, 2020.
Quarterly average demand deposit accounts increased $112.3 million, or 32.7% annualized, compared to the third quarter of 2021 and increased $510.4 million, or 52.2%, compared to the fourth quarter of 2020.
Cost of deposits decreased to 0.07% from 0.08% in the third quarter of 2021 and from 0.16% in the fourth quarter of 2020.
Tangible book value per share increased to $17.39 from $16.94 at September 30, 2021 and from $15.62 at December 31, 2020.
Annualized net charge-offs to average loans totaled 0.11% for the fourth quarter of 2021 and 0.06% for the full year 2021. Non-performing assets to total assets were 0.11% at December 31, 2021.
The allowance for credit losses was 1.05% of total loans held for investment at December 31, 2021, compared to 1.16% at September 30, 2021 and 1.55% at December 31, 2020.
On November 16, 2021, ACBI shareholders approved the announced merger with SouthState Corporation (“SouthState”), which is expected to close in 2022, subject to regulatory approval.

Income Statement

Taxable equivalent net interest income totaled $25.7 million for the fourth quarter of 2021, compared to $23.0 million in the fourth quarter of 2020 and $25.1 million in the third quarter of 2021. The fourth quarter of 2021 included $929,000 in PPP loan income, compared to $2.3 million in the fourth quarter of 2020 and $1.9 million in the third quarter of 2021.

Taxable equivalent net interest margin was 2.76% in the fourth quarter of 2021, compared to 2.91% in the fourth quarter of 2020 and 2.69% in the third quarter of 2021. The taxable equivalent net interest margin excluding PPP loans was 2.68% for the fourth quarter of 2021, compared to 2.54% for the third quarter of 2021.

The yield on loans in the fourth quarter of 2021 was 3.86%, a decrease of 3 basis points from the fourth quarter of 2020 and a decrease of 5 basis points from the third quarter of 2021. Excluding PPP loans, the fourth quarter of 2021 loan yield was 3.75%, up 4 basis points from the third quarter of 2021.

The cost of deposits in the fourth quarter of 2021 was 0.07%, a decrease of 9 basis points from the fourth quarter of 2020 and a decrease of 1 basis point from the third quarter of 2021. The cost of interest-bearing deposits decreased 13 basis points to 0.12% from the fourth quarter of 2020 and decreased 3 basis points from the third quarter of 2021.

In the fourth quarter of 2021, we recorded a negative provision for credit losses of $731,000, compared to a provision for credit losses of $481,000 in the fourth quarter of 2020 and a negative provision for credit losses of $2.4 million in the third quarter of 2021.

Noninterest income totaled $4.6 million in the fourth quarter of 2021, compared to $3.0 million in the fourth quarter of 2020 and $4.6 million in the third quarter of 2021.

Noninterest expense totaled $16.0 million in the fourth quarter of 2021, compared to $13.2 million in the fourth quarter of 2020 and $15.0 million in the third quarter of 2021. The fourth quarter of 2021 included $846,000 in merger related expenses compared to $2.9 million in the third quarter of 2021. The third quarter of 2021 also included an expense reduction of $3.0 million as a result of the employee retention payroll tax credit pursuant to the CARES Act.

⁽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 $2.4 billion at December 31, 2021, an increase of $118.2 million from December 31, 2020 and an increase of $93.4 million from September 30, 2021. Loans held for investment, excluding PPP loans, increased $123.8 million, or 22.2% annualized, from September 30, 2021, and increased $292.4 million, or 14.2%, from December 31, 2020.

The allowance for credit losses was 1.05% of total loans held for investment at December 31, 2021, compared to 1.16% at September 30, 2021. The decrease in the allowance was primarily a result of an improvement in our current expected credit losses, or CECL, economic forecast. Excluding the impact of PPP loans, the allowance for credit losses at December 31, 2021 was 1.06%, compared to 1.18% at September 30, 2021.

Total average deposits were $3.4 billion for the fourth quarter of 2021, an increase of $521.4 million, or 18.1%, from the fourth quarter of 2020 and a decrease of $18.1 million, or 2.1% annualized, from the third quarter of 2021. Average noninterest bearing deposits were $1.5 billion for the fourth quarter of 2021, an increase of $510.4 million, or 52.2%, from the fourth quarter of 2020 and an increase of $112.3 million, or 32.7% annualized, from the third quarter of 2021. Noninterest bearing deposits were 43.8% of total average deposits in the fourth quarter of 2021, compared to 34.0% in the fourth quarter of 2020 and 40.3% in the third quarter of 2021.

Merger Update

On July 22, 2021, Atlantic Capital and 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 the Board of Governors of the Federal Reserve System. Approval of the merger has been received from shareholders and the Office of the Comptroller of the Currency.

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.

About Atlantic Capital Bancshares

Atlantic Capital Bancshares, Inc. is a $3.8 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 year ended
	2021																2020			December 31,
(in thousands, except share and per share data;	Fourth				Third				Second				First				Fourth
taxable equivalent)	Quarter				Quarter				Quarter				Quarter				Quarter			2021				2020
INCOME SUMMARY
Interest income - taxable equivalent ⁽¹⁾	$	27,323			$	27,040			$	27,993			$	25,775			$	25,288		$	108,132			$	100,474
Interest expense		1,658				1,895				1,958				2,065				2,299			7,576				12,023
Net interest income - taxable equivalent		25,665				25,145				26,035				23,710				22,989			100,556				88,451
Provision for credit losses		(731	)			(2,405	)			(933	)			(4,519	)			481			(8,588	)			17,446
Net interest income after provision for credit losses		26,396				27,550				26,968				28,229				22,508			109,144				71,005
Noninterest income		4,555				4,609				3,584				3,562				3,016			16,310				10,285
Noninterest expense		15,963				15,018				15,197				15,149				13,164			61,327				52,659
Income before income taxes		14,988				17,141				15,355				16,642				12,360			64,127				28,631
Income tax expense		3,324				3,837				3,539				3,280				2,410			13,981				6,091
Net income⁽¹⁾⁽²⁾	$	11,664			$	13,304			$	11,816			$	13,362			$	9,950		$	50,146			$	22,540

PER SHARE DATA
Diluted earnings per share	$	0.57			$	0.65			$	0.58			$	0.65			$	0.48		$	2.45			$	1.05
Book value per share		18.37				17.92				17.38				16.72				16.60			18.37				16.60
Tangible book value per common share ⁽³⁾		17.39				16.94				16.40				15.74				15.62			17.39				15.62

PERFORMANCE MEASURES
Return on average equity		12.52		%		14.69		%		13.60		%		15.99		%		11.68	%		14.16		%		6.67	%
Return on average assets		1.19				1.36				1.26				1.50				1.19			1.32				0.76
Taxable equivalent net interest margin		2.76				2.69				2.91				2.81				2.91			2.79				3.16
Taxable equivalent net interest margin excluding PPP loans		2.68				2.54				2.70				2.70				2.81			2.66				3.18
Efficiency ratio		53.52				51.12				51.97				56.30				51.30			53.16				54.14
Average loans to average deposits		67.79				65.81				67.54				71.93				76.81			68.18				84.11
CAPITAL
Average equity to average assets		9.51		%		9.23		%		9.24		%		9.39		%		10.18	%		9.34		%		11.33	%
Tangible common equity to tangible assets		9.31				8.21				8.86				8.63				8.86			9.31				8.86
Leverage ratio		8.9		⁽³⁾		8.5				8.4				8.4				8.9			9.1		⁽³⁾		8.9
Total risk based capital ratio		15.3		⁽³⁾		15.9				16.0				16.4				16.1			15.3		⁽³⁾		16.1

SHARES OUTSTANDING
Number of common shares outstanding - basic		20,334,150				20,305,109				20,319,429				20,354,077				20,394,912			20,334,150				20,394,912
Number of common shares outstanding - diluted		20,573,618				20,590,747				20,595,812				20,617,188				20,492,542			20,573,618				20,492,542
Average number of common shares - basic		20,309,415				20,308,761				20,332,503				20,380,066				20,711,089			20,276,717				21,342,086
Average number of common shares - diluted		20,532,447				20,507,604				20,516,478				20,502,184				20,795,332			20,459,032				21,427,722

ASSET QUALITY
Allowance for credit losses to loans held for investment		1.05		%		1.16		%		1.27		%		1.31		%		1.55	%		1.05		%		1.55	%
Net charge-offs to average loans ⁽⁴⁾		0.11				0.00				0.10				0.04				0.05			0.06				0.11
Non-performing assets to total assets		0.11				0.10				0.14				0.06				0.13			0.11				0.13

AVERAGE BALANCES
Total loans	$	2,302,085			$	2,246,529			$	2,233,906			$	2,270,660			$	2,207,956		$	2,263,335			$	2,105,930
Investment securities		759,824				733,452				656,507				579,547				491,134			682,967				456,422
Total assets		3,883,632				3,893,049				3,771,970				3,611,417				3,328,719			3,791,043				2,982,222
Deposits		3,395,762				3,413,882				3,307,601				3,156,906				2,874,402			3,319,454				2,503,703
Shareholders' equity		369,485				359,300				348,416				338,990				338,948			354,144				337,879

AT PERIOD END
Loans and loans held for sale	$	2,369,321			$	2,285,670			$	2,264,899			$	2,302,661			$	2,249,036		$	2,369,321			$	2,249,036
Investment securities		738,929				772,987				714,065				613,236				535,579			738,929				535,579
Total assets		3,819,585				4,210,316				3,780,445				3,732,668				3,615,617			3,819,585				3,615,617
Deposits		3,327,902				3,727,321				3,306,224				3,277,692				3,161,508			3,327,902				3,161,508
Shareholders’ equity		373,523				363,925				353,185				340,328				338,586			373,523				338,586

⁽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 December 31, 2021.
⁽⁴⁾Annualized.

ATLANTIC CAPITAL BANCSHARES, INC.
Consolidated Balance Sheets (unaudited)

	December 31,			September 30,			December 31,
(in thousands, except share data)	2021			2021			2020
ASSETS
Cash and due from banks	$	16,214		$	25,725		$	16,865
Interest-bearing deposits in banks		377,780			811,168			636,537
Other short-term investments		137,181			140,848			—
Cash and cash equivalents		531,175			977,741			653,402
Investment securities available for sale		501,218			535,158			335,423
Investment securities held to maturity, net of allowance for credit losses of $13, $13, and $14, at December 31, 2021, September 30, 2021, and December 31, 2020, respectively		237,711			237,829			200,156
Other investments		23,546			23,877			25,892
Loans held for sale		2,087			11,814			—
Loans held for investment		2,367,234			2,273,856			2,249,036
Less: allowance for loan losses		(22,186	)		(23,924	)		(31,818	)
Loans held for investment, net		2,345,048			2,249,932			2,217,218
Premises and equipment, net		17,540			18,517			21,589
Bank owned life insurance		74,385			74,000			72,856
Goodwill		19,925			19,925			19,925
Other intangibles, net		2,597			2,573			2,731
Other real estate owned		—			—			16
Other assets		64,353			58,950			66,409
Total assets	$	3,819,585		$	4,210,316		$	3,615,617

LIABILITIES AND SHAREHOLDERS’ EQUITY
Deposits:
Noninterest-bearing demand	$	1,471,920		$	1,691,616		$	1,033,765
Interest-bearing checking		648,763			721,525			760,638
Savings		884			800			625
Money market		823,127			930,929			1,030,753
Time		288,698			287,865			241,328
Brokered deposits		94,510			94,586			94,399
Total deposits		3,327,902			3,727,321			3,161,508
Long-term debt		74,089			74,024			73,807
Other liabilities		44,071			45,046			41,716
Total liabilities		3,446,062			3,846,391			3,277,031

SHAREHOLDERS’ EQUITY
Preferred stock, no par value; 10,000,000 shares authorized; no shares issued and outstanding as of December 31, 2021, September 30, 2021 and December 31, 2020		—			—			—
Common stock, no par value; 100,000,000 shares authorized; 20,334,150, 20,305,109, and 20,394,912 shares issued and outstanding as of December 31, 2021, September 30, 2021 and December 31, 2020, respectively		207,514			207,214			209,942
Retained earnings		164,283			152,619			114,137
Accumulated other comprehensive income		1,726			4,092			14,507
Total shareholders’ equity		373,523			363,925			338,586
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY	$	3,819,585		$	4,210,316		$	3,615,617

ATLANTIC CAPITAL BANCSHARES, INC.
Consolidated Statements of Income (unaudited)

(in thousands, except share and per share data)	Three months ended															Year ended
	December 31,			September 30,			June 30,			March 31,			December 31,			December 31,			December 31,
	2021			2021			2021			2021			2020			2021			2020
INTEREST INCOME
Loans, including fees	$	22,375		$	22,151		$	23,352		$	21,769		$	21,609		$	89,647		$	85,580
Investment securities		4,014			3,920			3,900			3,374			3,000			15,208			11,683
Interest and dividends on other interest‑earning assets		541			593			366			267			334			1,767			1,733
Total interest income		26,930			26,664			27,618			25,410			24,943			106,622			98,996
INTEREST EXPENSE
Interest on deposits		562			789			851			971			1,188			3,173			7,820
Interest on Federal Home Loan Bank advances		—			—			—			—			—			—			54
Interest on federal funds purchased and securities sold under agreements to repurchase		—			—			—			—			—			—			41
Interest on long-term debt		1,096			1,106			1,107			1,094			1,111			4,403			4,108
Total interest expense		1,658			1,895			1,958			2,065			2,299			7,576			12,023
NET INTEREST INCOME BEFORE PROVISION FOR CREDIT LOSSES		25,272			24,769			25,660			23,345			22,644			99,046			86,973
Provision for credit losses		(731	)		(2,405	)		(933	)		(4,519	)		481			(8,588	)		17,446
NET INTEREST INCOME AFTER PROVISION FOR CREDIT LOSSES		26,003			27,174			26,593			27,864			22,163			107,634			69,527
NONINTEREST INCOME
Service charges		1,777			1,765			1,727			1,663			1,341			6,932			4,871
Gains (losses) on sale of securities		—			—			—			2			(23	)		2			(23	)
Gains (losses) on sale of other assets		—			38			—			—			(6	)		38			(146	)
Derivatives income (loss)		5			21			(7	)		47			11			66			257
Bank owned life insurance		386			391			388			391			368			1,556			1,460
SBA lending activities		1,451			1,276			1,231			1,225			1,015			5,183			3,104
Other noninterest income		936			1,118			245			234			310			2,533			762
Total noninterest income		4,555			4,609			3,584			3,562			3,016			16,310			10,285
NONINTEREST EXPENSE
Salaries and employee benefits		10,176			10,290			10,362			10,421			8,437			41,249			34,229
Employee retention credit		—			(3,035	)		—			—			—			(3,035	)		—
Occupancy		682			756			778			734			767			2,950			3,183
Equipment and software		688			857			819			774			969			3,138			3,337
Professional services		653			737			723			922			686			3,035			2,745
Communications and data processing		1,011			889			869			792			789			3,561			3,113
Marketing and business development		145			142			138			108			144			533			517
Travel, meals and entertainment		102			91			47			10			14			250			227
FDIC premiums		506			478			421			275			241			1,680			629
Merger and conversion costs		846			2,899			—			—			—			3,745			—
Other noninterest expense		1,154			914			1,040			1,113			1,117			4,221			4,679
Total noninterest expense		15,963			15,018			15,197			15,149			13,164			61,327			52,659

INCOME BEFORE PROVISION FOR INCOME TAXES		14,595			16,765			14,980			16,277			12,015			62,617			27,153
Provision for income taxes		2,931			3,461			3,164			2,915			2,065			12,471			4,613
NET INCOME	$	11,664		$	13,304		$	11,816		$	13,362		$	9,950		$	50,146		$	22,540

Net income per common share - basic	$	0.57		$	0.66		$	0.58		$	0.66		$	0.48		$	2.47		$	1.06
Net income per common share - diluted	$	0.57		$	0.65		$	0.58		$	0.65		$	0.48		$	2.45		$	1.05

Weighted average shares - basic		20,309,415			20,308,761			20,332,503			20,380,066			20,711,089			20,276,717			21,342,086
Weighted average shares - diluted		20,532,447			20,507,604			20,516,478			20,502,184			20,795,332			20,459,032			21,427,722

ATLANTIC CAPITAL BANCSHARES, INC.
Average Balance Sheets and Net Interest Margin Analysis
Selected Financial Information
	Three months ended
	December 31, 2021						September 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	$	476,945	$	201	0.17	%	$	594,338	$	266	0.18	%
Other short-term investments		139,094		174	0.50			122,477		156	0.51
Investment securities:
Taxable investment securities		533,088		2,453	1.83			503,420		2,411	1.90
Non-taxable investment securities ⁽¹⁾		226,736		1,954	3.42			230,032		1,885	3.25
Total investment securities		759,824		4,407	2.30			733,452		4,296	2.32
Loans		2,302,085		22,375	3.86			2,246,529		22,151	3.91
FHLB and FRB stock		11,972		166	5.50			11,931		171	5.69
Total interest-earning assets		3,689,920		27,323	2.94			3,708,727		27,040	2.89
Non-earning assets		193,712						184,322
Total assets	$	3,883,632					$	3,893,049
Liabilities
Interest bearing deposits:
NOW, money market, and savings		1,526,469		453	0.12			1,665,462		680	0.16
Time deposits		287,617		44	0.06			285,808		50	0.07
Brokered deposits		94,271		65	0.27			87,498		59	0.27
Total interest-bearing deposits		1,908,357		562	0.12			2,038,768		789	0.15
Total borrowings		—		—	—			—		—	—
Total long-term debt		74,046		1,096	5.87			73,978		1,106	5.93
Total interest-bearing liabilities		1,982,403		1,658	0.33			2,112,746		1,895	0.36
Demand deposits		1,487,405						1,375,114
Other liabilities		44,339						45,889
Shareholders’ equity		369,485						359,300
Total liabilities and shareholders’ equity	$	3,883,632					$	3,893,049
Net interest spread					2.61	%					2.53	%
Net interest income and net interest margin ⁽²⁾			$	25,665	2.76	%			$	25,145	2.69	%

Non-taxable equivalent net interest margin					2.72	%					2.65	%

⁽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, 2021						December 31, 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	$	476,945	$	201	0.17	%	$	435,939	$	141	0.13	%
Other short-term investments		139,094		174	0.50			—		—	—
Investment securities:
Taxable investment securities		533,088		2,453	1.83			275,872		1,587	2.29
Non-taxable investment securities ⁽¹⁾		226,736		1,954	3.42			215,262		1,758	3.25
Total investment securities		759,824		4,407	2.30			491,134		3,345	2.71
Loans		2,302,085		22,375	3.86			2,207,956		21,609	3.89
FHLB and FRB stock		11,972		166	5.50			12,699		193	6.05
Total interest-earning assets		3,689,920		27,323	2.94			3,147,728		25,288	3.20
Non-earning assets		193,712						180,991
Total assets	$	3,883,632					$	3,328,719
Liabilities
Interest bearing deposits:
NOW, money market, and savings		1,526,469		453	0.12			1,585,928		1,043	0.26
Time deposits		287,617		44	0.06			221,792		72	0.13
Brokered deposits		94,271		65	0.27			89,673		73	0.32
Total interest-bearing deposits		1,908,357		562	0.12			1,897,393		1,188	0.25
Total borrowings		—		—	—			—		—	—
Total long-term debt		74,046		1,096	5.87			73,811		1,111	5.99
Total interest-bearing liabilities		1,982,403		1,658	0.33			1,971,204		2,299	0.46
Demand deposits		1,487,405						977,009
Other liabilities		44,339						41,558
Shareholders’ equity		369,485						338,948
Total liabilities and shareholders’ equity	$	3,883,632					$	3,328,719
Net interest spread					2.61	%					2.73	%
Net interest income and net interest margin ⁽²⁾			$	25,665	2.76	%			$	22,989	2.91	%

Non-taxable equivalent net interest margin					2.72	%					2.86	%

⁽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
	Year ended
	December 31, 2021						December 31, 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	$	580,203	$	835	0.14	%	$	220,225	$	897	0.41	%
Other short-term investments		65,930		330	0.50			27		—	—
Investment securities:
Taxable investment securities		455,466		9,145	2.01			253,799		6,316	2.49
Non-taxable investment securities ⁽¹⁾		227,501		7,573	3.33			202,623		6,845	3.38
Total investment securities		682,967		16,718	2.45			456,422		13,161	2.88
Loans		2,263,335		89,647	3.96			2,105,930		85,580	4.06
FHLB and FRB stock		12,129		602	4.96			14,172		836	5.90
Total interest-earning assets		3,604,564		108,132	3.00			2,796,776		100,474	3.59
Non-earning assets		186,479						185,446
Total assets	$	3,791,043					$	2,982,222
Liabilities
Interest bearing deposits:
NOW, money market, and savings		1,622,596		2,692	0.17			1,444,699		6,931	0.48
Time deposits		284,385		236	0.08			135,309		269	0.20
Brokered deposits		87,676		245	0.28			83,274		620	0.74
Total interest-bearing deposits		1,994,657		3,173	0.16			1,663,282		7,820	0.47
Total borrowings		22		—	—			37,473		95	0.25
Total long-term debt		73,940		4,403	5.95			64,162		4,108	6.40
Total interest-bearing liabilities		2,068,619		7,576	0.37			1,764,917		12,023	0.68
Demand deposits		1,324,797						840,421
Other liabilities		43,483						39,005
Shareholders’ equity		354,144						337,879
Total liabilities and shareholders’ equity	$	3,791,043					$	2,982,222
Net interest spread					2.63	%					2.91	%
Net interest income and net interest margin ⁽²⁾			$	100,556	2.79	%			$	88,451	3.16	%

Non-taxable equivalent net interest margin					2.75	%					3.11	%

⁽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
	December 31,			September 30,			June 30,			March 31,			December 31,			Quarter			Year
(dollars in thousands)	2021			2021			2021			2021			2020			Change			Change
Loans held for sale
Loans held for sale	$	2,087		$	11,814		$	—		$	1,847		$	—		$	(9,727	)	$	2,087
Total loans held for sale	$	2,087		$	11,814		$	—		$	1,847		$	—		$	(9,727	)	$	2,087

Loans held for investment
Commercial loans:
Commercial and industrial - other	$	863,060		$	790,437		$	767,646		$	735,287		$	760,645		$	72,623		$	102,415
Commercial and industrial - PPP		17,919			48,304			105,684			218,766			192,160			(30,385	)		(174,241	)
Commercial real estate:
Multifamily		73,581			62,906			58,632			80,507			66,262			10,675			7,319
Owner occupied		438,630			413,875			392,108			381,018			373,689			24,755			64,941
Investment		548,143			483,538			506,230			480,566			469,150			64,605			78,993
Construction and land:
1‑4 family residential construction		297			2,338			2,074			1,578			1,171			(2,041	)		(874	)
Other construction, development, and land		153,639			202,810			178,423			141,218			144,424			(49,171	)		9,215
Total commercial loans		2,095,269			2,004,208			2,010,797			2,038,940			2,007,501			91,061			87,768

Residential:
Residential mortgages		45,816			47,076			45,207			31,817			33,783			(1,260	)		12,033
Home equity		27,315			28,943			24,972			26,293			25,443			(1,628	)		1,872
Total residential loans		73,131			76,019			70,179			58,110			59,226			(2,888	)		13,905

Consumer		197,955			192,462			184,203			203,176			176,066			5,493			21,889
Other		4,733			4,921			5,234			7,689			13,897			(188	)		(9,164	)
		2,371,088			2,277,610			2,270,413			2,307,915			2,256,690			93,478			114,398
Less net deferred fees and other unearned income		(3,854	)		(3,754	)		(5,514	)		(7,101	)		(7,654	)		(100	)		3,800
Total loans held for investment	$	2,367,234		$	2,273,856		$	2,264,899		$	2,300,814		$	2,249,036		$	93,378		$	118,198

Total loans	$	2,369,321		$	2,285,670		$	2,264,899		$	2,302,661		$	2,249,036		$	83,651		$	120,285

Total unfunded commitments	$	1,079,769		$	848,642		$	804,784		$	789,869		$	813,757		$	231,127		$	266,012

ATLANTIC CAPITAL BANCSHARES, INC.
Allowance for Credit Losses Activity and Credit Quality

	2021																2020
	Fourth				Third				Second				First				Fourth
(dollars in thousands)	Quarter				Quarter				Quarter				Quarter				Quarter
Allowance for loan losses
Balance at beginning of period	$	23,924			$	26,123			$	27,506			$	31,818			$	31,894
Provision for loan losses		(1,108	)			(2,221	)			(814	)			(4,074	)			225
Loans charged-off:
Commercial and industrial		(215	)			(131	)			(386	)			(288	)			(401	)
Commercial real estate		—				—				—				—				—
Construction and land		—				—				—				—				—
Residential mortgages		(501	)			—				(223	)			—				—
Home equity		—				—				—				—				—
Consumer		—				—				—				—				—
Other		—				—				—				—				—
Total loans charged-off		(716	)			(131	)			(609	)			(288	)			(401	)
Recoveries on loans previously charged-off:
Commercial and industrial		81				151				6				50				37
Commercial real estate		—				—				—				—				44
Construction and land		—				—				—				—				18
Residential mortgages		3				—				32				—				—
Home equity		—				—				—				—				—
Consumer		2				2				2				—				1
Other		—				—				—				—				—
Total recoveries		86				153				40				50				100
Net charge-offs	$	(630	)		$	22			$	(569	)		$	(238	)		$	(301	)
Balance at period end	$	22,186			$	23,924			$	26,123			$	27,506			$	31,818

Allowance for unfunded commitments
Balance at beginning of period	$	2,380			$	2,565			$	2,683			$	3,128			$	2,871
Provision for unfunded commitments		377				(185	)			(118	)			(445	)			257
Balance at period end	$	2,757			$	2,380			$	2,565			$	2,683			$	3,128

Total allowance for credit losses - loans and unfunded commitments	$	24,943			$	26,304			$	28,688			$	30,189			$	34,946

Provision for credit losses under CECL
Provision for loan losses		(1,108	)			(2,221	)			(814	)			(4,074	)			225
Provision for securities held to maturity credit losses		-				1				(1	)			-				(1	)
Provision for unfunded commitments		377				(185	)			(118	)			(445	)			257
Total provision for credit losses	$	(731	)		$	(2,405	)		$	(933	)		$	(4,519	)		$	481

Non-performing loans	$	4,153			$	4,077			$	5,194			$	2,056			$	4,862
Foreclosed properties (OREO)		—				—				16				16				16
Total nonperforming assets	$	4,153			$	4,077			$	5,210			$	2,072			$	4,878

Allowance for loan losses to loans held for investment		0.94		%		1.05		%		1.15		%		1.20		%		1.41		%
Allowance for credit losses to loans held for investment		1.05		%		1.16		%		1.27		%		1.31		%		1.55		%
Allowance for credit losses to loans held for investment excluding PPP loans		1.06		%		1.18		%		1.33		%		1.45		%		1.70		%
Net charge-offs to average loans ⁽¹⁾		0.11				0.00				0.10				0.04				0.05
Non-performing loans as a percentage of total loans		0.18		%		0.18		%		0.23		%		0.09		%		0.22		%
Non-performing assets as a percentage of total assets		0.11		%		0.10		%		0.14		%		0.06		%		0.13		%

⁽¹⁾Annualized.

ATLANTIC CAPITAL BANCSHARES, INC.
Period End Deposits

																Linked
	December 31,			September 30,			June 30,			March 31,			December 31,			Quarter			Year Over
(dollars in thousands)	2021			2021			2021			2021			2020			Change			Year Change
DDA	$	1,471,920		$	1,691,616		$	1,374,018		$	1,280,524		$	1,033,765		$	(219,696	)	$	438,155
NOW		648,763			721,525			536,677			485,540			760,638			(72,762	)		(111,875	)
Savings		884			800			676			562			625			84			259
Money market		823,127			930,929			1,026,239			1,142,361			1,030,753			(107,802	)		(207,626	)
Time		288,698			287,865			283,656			294,129			241,328			833			47,370
Brokered		94,510			94,586			84,958			74,576			94,399			(76	)		111
Total deposits	$	3,327,902		$	3,727,321		$	3,306,224		$	3,277,692		$	3,161,508		$	(399,419	)	$	166,394


Average Deposits

	2021												2020			Linked
	Fourth			Third			Second			First			Fourth			Quarter			Q4 2021 vs
(dollars in thousands)	Quarter			Quarter			Quarter			Quarter			Quarter			Change			Q4 2020
DDA	$	1,487,405		$	1,375,114		$	1,295,728		$	1,136,531		$	977,009		$	112,291		$	510,396
NOW		650,668			607,485			548,358			618,701			558,967			43,183		$	91,701
Savings		875			731			593			587			614			144		$	261
Money market		874,926			1,057,246			1,088,423			1,042,809			1,026,347			(182,320	)	$	(151,421	)
Time		287,617			285,808			290,331			273,615			221,792			1,809		$	65,825
Brokered		94,271			87,498			84,168			84,663			89,673			6,773		$	4,598
Total deposits	$	3,395,762		$	3,413,882		$	3,307,601		$	3,156,906		$	2,874,402		$	(18,120	)	$	521,360

Noninterest bearing deposits as a percentage of average deposits		43.8	%		40.3	%		39.2	%		36.0	%		34.0	%
Cost of interest-bearing deposits		0.12	%		0.15	%		0.17	%		0.19	%		0.25	%
Cost of deposits		0.07	%		0.08	%		0.10	%		0.12	%		0.16	%

ATLANTIC CAPITAL BANCSHARES, INC.
Non-GAAP Performance and Financial Measures Reconciliation
																					For the twelve months
	2021																2020				ended December 31,
	Fourth				Third				Second				First				Fourth
(in thousands, except share and per share data)	Quarter				Quarter				Quarter				Quarter				Quarter				2021				2020

Taxable equivalent interest income reconciliation
Interest income - GAAP	$	26,930			$	26,664			$	27,618			$	25,410			$	24,943			$	106,622			$	98,996
Taxable equivalent adjustment		393				376				375				365				345				1,510				1,478
Interest income - taxable equivalent	$	27,323			$	27,040			$	27,993			$	25,775			$	25,288			$	108,132			$	100,474

Taxable equivalent net interest income reconciliation
Net interest income - GAAP	$	25,272			$	24,769			$	25,660			$	23,345			$	22,644			$	99,046			$	86,973
Taxable equivalent adjustment		393				376				375				365				345				1,510				1,478
Net interest income - taxable equivalent	$	25,665			$	25,145			$	26,035			$	23,710			$	22,989			$	100,556			$	88,451

Loan yield excluding PPP loans reconciliation
Loan yield - GAAP		3.86		%		3.91		%		4.19		%		3.89		%		3.89		%		3.96		%		4.06		%
Impact of PPP loans		(0.11	)			(0.20	)			(0.24	)			(0.06	)			(0.03	)			(0.15	)			0.10
Loan yield excluding PPP loans		3.75		%		3.71		%		3.95		%		3.83		%		3.86		%		3.81		%		4.16		%

Taxable equivalent net interest margin reconciliation
Net interest margin - GAAP		2.72		%		2.65		%		2.87		%		2.76		%		2.86		%		2.75		%		3.11		%
Impact of taxable equivalent adjustment		0.04				0.04				0.04				0.05				0.05				0.04				0.05
Net interest margin - taxable equivalent		2.76		%		2.69		%		2.91		%		2.81		%		2.91		%		2.79		%		3.16		%

Taxable equivalent net interest margin excluding PPP loans reconciliation
Net interest margin - taxable equivalent		2.76		%		2.69		%		2.91		%		2.81		%		2.91		%		2.79		%		3.11		%
Impact of PPP loans		(0.08	)			(0.15	)			(0.21	)			(0.11	)			(0.10	)			(0.13	)			0.07
Net interest margin - taxable equivalent excluding PPP loans		2.68		%		2.54		%		2.70		%		2.70		%		2.81		%		2.66		%		3.18		%

Taxable equivalent income before income taxes reconciliation
Income before income taxes - GAAP	$	14,595			$	16,765			$	14,980			$	16,277			$	12,015			$	62,617			$	27,153
Taxable equivalent adjustment		393				376				375				365				345				1,510				1,478
Income before income taxes	$	14,988			$	17,141			$	15,355			$	16,642			$	12,360			$	64,127			$	28,631

Taxable equivalent income tax expense reconciliation
Income tax expense - GAAP	$	2,931			$	3,461			$	3,164			$	2,915			$	2,065			$	12,471			$	4,613
Taxable equivalent adjustment		393				376				375				365				345				1,510				1,478
Income tax expense	$	3,324			$	3,837			$	3,539			$	3,280			$	2,410			$	13,981			$	6,091

Tangible book value per common share reconciliation
Total shareholders’ equity	$	373,523			$	363,925			$	353,185			$	340,328			$	338,586			$	373,523			$	338,586
Intangible assets		(19,925	)			(19,925	)			(19,925	)			(19,925	)			(19,925	)			(19,925	)			(19,925	)
Total tangible common equity	$	353,598			$	344,000			$	333,260			$	320,403			$	318,661			$	353,598			$	318,661
Common shares outstanding		20,334,150				20,305,109				20,319,429				20,354,077				20,394,912				20,334,150				20,394,912
Book value per common share - GAAP	$	18.37			$	17.92			$	17.38			$	16.72			$	16.60			$	18.37			$	16.60
Tangible book value		17.39				16.94				16.40				15.74				15.62				17.39				15.62

Tangible common equity to tangible assets reconciliation
Total shareholders’ equity	$	373,523			$	363,925			$	353,185			$	340,328			$	338,586			$	373,523			$	338,586
Intangible assets		(19,925	)			(19,925	)			(19,925	)			(19,925	)			(19,925	)			(19,925	)			(19,925	)
Total tangible common equity	$	353,598			$	344,000			$	333,260			$	320,403			$	318,661			$	353,598			$	318,661

Total assets	$	3,819,585			$	4,210,316			$	3,780,445			$	3,732,668			$	3,615,617			$	3,819,585			$	3,615,617
Intangible assets		(19,925	)			(19,925	)			(19,925	)			(19,925	)			(19,925	)			(19,925	)			(19,925	)
Total tangible assets	$	3,799,660			$	4,190,391			$	3,760,520			$	3,712,743			$	3,595,692			$	3,799,660			$	3,595,692
Tangible common equity to tangible assets		9.31		%		8.21		%		8.86		%		8.63		%		8.86		%		9.31		%		8.86		%

Allowance for credit losses to loans held for investment reconciliation
Total loans held for investment	$	2,367,234			$	2,273,856			$	2,264,899			$	2,300,814			$	2,249,036			$	2,367,234			$	2,249,036
PPP loans		(17,919	)			(48,304	)			(105,684	)			(218,766	)			(192,160	)			(17,919	)			(192,160	)
Total loans held for investment excluding PPP loans	$	2,349,315			$	2,225,552			$	2,159,215			$	2,082,048			$	2,056,876			$	2,349,315			$	2,056,876

Allowance for credit losses to loans held for investment		1.05		%		1.16		%		1.27		%		1.31		%		1.55		%		1.05		%		1.55		%
Allowance for credit losses to loans held for investment excluding PPP loans		1.06		%		1.18		%		1.33		%		1.45		%		1.70		%		1.06		%		1.70		%

Atlantic Capital Bancshares, Inc. Reports Fourth Quarter 2021 Results