ATLANTA, Oct. 27, 2017 (GLOBE NEWSWIRE) -- Atlantic Capital Bancshares, Inc. (NASDAQ:ACBI) announced results of the quarter ended September 30, 2017.
Third Quarter Highlights
- Reported net income of $4.1 million, or $0.16 per diluted share, compared to $4.3 million, or $0.17 per diluted share, in the second quarter of 2017.
- Reported return on average assets of 0.60% and tangible book value per share of $11.67.
- Excluding the impact of purchase accounting, reported taxable equivalent net interest margin of 3.20%, up 5 basis points from the second quarter of 2017.
- Lowered noninterest expense to $17.5 million from $17.6 million in the second quarter of 2017.
- Decreased nonperforming assets to 0.23% of total assets from 0.52% in the second quarter of 2017.
“Atlantic Capital’s earnings this quarter fell short of our expectations for a variety of reasons, including exceptionally large, unanticipated loan repayments and one time expenses related to the secondary offering in August. Our board and new leadership team are working together to develop and implement new revenue and cost savings initiatives designed to accelerate performance improvement in 2018 and beyond,” explained Douglas Williams, Chief Executive Officer.
Results of Operations
For the third quarter of 2017, Atlantic Capital recorded net income of $4.1 million, or $0.16 per diluted share, compared to net income of $4.3 million, or $0.17 per diluted share, in the second quarter of 2017.
Taxable equivalent net interest income decreased to $20.5 million in the third quarter of 2017 from $20.7 million in the second quarter of 2017. This decrease was driven by lower loan accretion income and an increase in the cost of interest bearing deposits. Net accretion income on acquired loans totaled $343,000 in the third quarter of 2017 compared to $629,000 in the second quarter of 2017.
Taxable equivalent net interest margin was 3.26% in the third quarter of 2017, unchanged from the second quarter of 2017. Excluding the impact of purchase accounting, the margin in the third quarter of 2017 increased 5 basis points to 3.20%, benefiting from the increase in the Fed Funds rate in June 2017. Loan yields, excluding loan accretion income, increased 10 basis points and the cost of deposits increased 4 basis points in the third quarter. The accretion of the acquired loan discount and amortization of time deposit premium contributed 6 basis points to the net interest margin in the third quarter of 2017 compared to 11 basis points in the second quarter of 2017.
The provision for loan losses was $322,000 in the third quarter of 2017 compared to $2.0 million in the second quarter of 2017. The second quarter of 2017 included the downgrade of a $7.7 million loan relationship to nonperforming and an additional $1.0 million specific reserve related to this downgrade. The third quarter included a $3.3 million charge-off of this loan relationship which had a $2.75 million total specific reserve as of June 30, 2017.
Noninterest income totaled $3.5 million in the third quarter of 2017, a decrease of $1.8 million from the second quarter of 2017. The second quarter of 2017 included a $302,000 gain on the sale of the Cleveland branch, a $240,000 gain on sale of other real estate, and a $426,000 gain on the sale of a tax credit investment. In addition, SBA lending activities decreased $283,000 from the second quarter of 2017, to $888,000.
Noninterest expense totaled $17.5 million in the third quarter of 2017 compared to $17.6 million in the second quarter of 2017. The second quarter of 2017 included $304,000 in merger expenses related to rebranding of the legacy First Security branches. The third quarter of 2017 included $395,000 in expenses related to the public offering of common stock by a selling stockholder completed during the quarter. Salaries and employee benefits decreased in the third quarter of 2017 by $194,000 to $10.4 million mainly from a lower incentive accrual.
Total loans were $1.91 billion at September 30, 2017, a decrease of $55.1 million from June 30, 2017. Loans held for investment were $1.91 billion at September 30, 2017, a decrease of $56.7 million from June 30, 2017 mainly as a result of higher loan payoffs and decreases in the balances of existing lines of credit. Mortgage warehouse participations decreased $6.4 million in the third quarter to $41.6 million at September 30, 2017.
At September 30, 2017, the allowance for loan losses was $18.9 million, or 0.99% of loans held for investment, compared to $21.9 million, or 1.11% of loans held for investment as of June 30, 2017. The decrease in the allowance was the result of the $3.3 million charge-off of the $7.7 million loan relationship which had a $2.75 million specific impairment as of June 30, 2017.
Annualized net charge-offs to average loans totaled 0.68% in the third quarter of 2017 and totaled 0.32% the first nine months of 2017. Nonperforming assets totaled $6.0 million, or 0.23% of total assets, as of September 30, 2017, compared to $14.1 million, or 0.52% of total assets, as of June 30, 2017, primarily as a result of the $3.3 million charge-off of the $7.7 million loan relationship.
Total average deposits for the third quarter of 2017 were $2.12 billion, a decrease of $37.4 million from the second quarter of 2017. Average noninterest bearing deposits increased $1.7 million to $628 million in the third quarter of 2017 and accounted for 29.6% of average total deposits. Average deposits associated with our payments business were $210 million in the third quarter of 2017, a decrease of $34.3 million from the second quarter of 2017.
Earnings Conference Call
The Company will host a conference call at 10:00 a.m. EST on Friday, October 27, 2017, to discuss the financial results for the quarter ended September 30, 2017. Individuals wishing to participate in the conference call may do so by dialing 844.868.8848 from the United States and entering Conference ID 89772886. The call will also be available live via webcast on the Investor Relations page of the Company's website, www.atlanticcapitalbank.com.
Non-GAAP Financial Measures
Statements included in this press release include non-GAAP financial measures and should be read along with the accompanying tables, which provide a reconciliation of non-GAAP financial measures to GAAP financial measures. Atlantic Capital management uses non-GAAP financial measures, including: (i) operating net income; (ii) operating non-interest expense; (iii) operating non-interest income; (iv) taxable equivalent interest income; (v) taxable equivalent net interest margin; (vi) efficiency ratio; (vii) operating return on average assets; (viii) operating return on average equity; and (ix) tangible common equity, in its analysis of the Company's performance. Operating net income excludes the following from net income available to common shareholders: merger and conversion costs, net gains on branch sales, and the income tax effect of adjustments. Operating non-interest expense excludes merger and conversion costs from non-interest expense as well as costs related to the sale of branches. The efficiency ratio excludes merger and conversion costs. Tangible common equity excludes goodwill and other intangible assets from shareholders' equity.
Management believes that non-GAAP financial measures provide a greater understanding of ongoing performance and operations, and enhance comparability with prior periods. Non-GAAP financial measures should not be considered as an alternative to any measure of performance or financial condition as determined in accordance with GAAP, and investors should consider Atlantic Capital’s performance and financial condition as reported under GAAP and all other relevant information when assessing the performance or financial condition of the Company. Non-GAAP financial measures have limitations as analytical tools, and investors should not consider them in isolation or as a substitute for analysis of the results or financial condition as reported under GAAP. Non-GAAP financial measures may not be comparable to non-GAAP financial measures presented by other companies.
Forward-Looking Statements
This press release contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements represent plans, estimates, objectives, goals, guidelines, expectations, intentions, projections and statements of our beliefs concerning future events, business plans, objectives, expected operating results and the assumptions upon which those statements are based. Forward-looking statements include without limitation, any statement that may predict, forecast, indicate or imply future results, performance or achievements, and are typically identified with words such as “may,” “could,” “should,” “will,” “would,” “believe,” “anticipate,” “estimate,” “project,” “expect,” “intend,” “plan,” or words or phases of similar meaning. Forward-looking statements may include, among other things, statements about Atlantic Capital’s confidence in its strategies and its expectations about financial performance, market growth, market and regulatory trends and developments, acquisitions and divestitures, new technologies, services and opportunities and earnings. The forward-looking statements are based largely on Atlantic Capital’s expectations and are subject to a number of known and unknown risks and uncertainties that are subject to change based on factors which are, in many instances, beyond Atlantic Capital’s control. Atlantic Capital undertakes no obligation to publicly update any forward-looking statement to reflect developments occurring after the statement is made, except as otherwise required by law. Actual results, performance or achievements could differ materially from those contemplated, expressed, or implied by the forward-looking statements as a result of, among other factors, the risks and uncertainties described in “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in Atlantic Capital’s Annual Report on Form 10-K and Quarterly Reports on Form 10-Q. Please refer to the SEC’s website at www.sec.gov where you can review those documents.
About Atlantic Capital Bancshares
Atlantic Capital Bancshares, Inc. is a $2.6 billion publicly traded bank holding company headquartered in Atlanta, Georgia. Atlantic Capital offers banking, treasury management, capital markets, trust, and mortgage services to privately held companies and individuals in Atlanta, eastern Tennessee, northwest Georgia and Charlotte, North Carolina. Atlantic Capital also provides specialized financial services to select clients nationally.
| ATLANTIC CAPITAL BANCSHARES, INC. | |||||||||||||||||||||||||||||||
| Selected Financial Information | |||||||||||||||||||||||||||||||
| 2017 | 2016 | For the nine months ended September 30, | |||||||||||||||||||||||||||||
| (in thousands, except share and per share data; taxable equivalent) | Third Quarter | Second Quarter | First Quarter | Fourth Quarter | Third Quarter | 2017 | 2016 | ||||||||||||||||||||||||
| INCOME SUMMARY | |||||||||||||||||||||||||||||||
| Interest income (1) | $ | 24,566 | $ | 24,545 | $ | 22,716 | $ | 22,530 | $ | 22,428 | $ | 71,827 | $ | 66,171 | |||||||||||||||||
| Interest expense | 4,060 | 3,833 | 3,208 | 3,029 | 2,941 | 11,101 | 8,480 | ||||||||||||||||||||||||
| Net interest income | 20,506 | 20,712 | 19,508 | 19,501 | 19,487 | 60,726 | 57,691 | ||||||||||||||||||||||||
| Provision for loan losses | 322 | 1,980 | 634 | 2,208 | 463 | 2,936 | 1,608 | ||||||||||||||||||||||||
| Net interest income after provision for loan losses | 20,184 | 18,732 | 18,874 | 17,293 | 19,024 | 57,790 | 56,083 | ||||||||||||||||||||||||
| Operating noninterest income (2) | 3,477 | 5,287 | 3,857 | 4,430 | 4,002 | 12,621 | 13,417 | ||||||||||||||||||||||||
| Operating noninterest expense (3) | 17,504 | 17,623 | 17,744 | 18,571 | 16,717 | 52,871 | 51,662 | ||||||||||||||||||||||||
| Operating income before income taxes | 6,157 | 6,396 | 4,987 | 3,152 | 6,309 | 17,540 | 17,838 | ||||||||||||||||||||||||
| Operating income tax expense | 2,105 | 2,067 | 1,757 | 1,417 | 2,245 | 5,929 | 6,691 | ||||||||||||||||||||||||
| Operating net income (2)(3) | 4,052 | 4,329 | 3,230 | 1,735 | 4,064 | 11,611 | 11,147 | ||||||||||||||||||||||||
| Merger related expenses, net of income tax | — | — | — | 126 | 356 | — | 1,559 | ||||||||||||||||||||||||
| Net gain on sale of branches, net of income tax | — | — | — | — | — | — | 2,198 | ||||||||||||||||||||||||
| Net income - GAAP | $ | 4,052 | $ | 4,329 | $ | 3,230 | $ | 1,609 | $ | 3,708 | $ | 11,611 | $ | 11,786 | |||||||||||||||||
| PER SHARE DATA | |||||||||||||||||||||||||||||||
| Diluted earnings per share - GAAP | $ | 0.16 | $ | 0.17 | $ | 0.13 | $ | 0.06 | $ | 0.15 | $ | 0.45 | $ | 0.47 | |||||||||||||||||
| Diluted earnings per share - operating (2)(3) | 0.16 | 0.17 | 0.13 | 0.07 | 0.16 | 0.45 | 0.44 | ||||||||||||||||||||||||
| Book value per share | 12.63 | 12.45 | 12.18 | 12.10 | 12.36 | 12.63 | 12.36 | ||||||||||||||||||||||||
| Tangible book value per share (4) | 11.67 | 11.47 | 11.16 | 11.05 | 11.29 | 11.67 | 11.29 | ||||||||||||||||||||||||
| PERFORMANCE MEASURES | |||||||||||||||||||||||||||||||
| Return on average equity - GAAP | 4.96 | % | 5.48 | % | 4.19 | % | 2.09 | % | 4.84 | % | 4.91 | % | 5.25 | % | |||||||||||||||||
| Return on average equity - operating (2)(3) | 4.96 | 5.48 | 4.19 | 2.25 | 5.30 | 4.91 | 4.97 | ||||||||||||||||||||||||
| Return on average assets - GAAP | 0.60 | 0.63 | 0.48 | 0.24 | 0.55 | 0.57 | 0.58 | ||||||||||||||||||||||||
| Return on average assets - operating (2)(3) | 0.60 | 0.63 | 0.48 | 0.25 | 0.60 | 0.57 | 0.55 | ||||||||||||||||||||||||
| Taxable equivalent net interest margin | 3.26 | 3.26 | 3.20 | 3.11 | 3.12 | 3.24 | 3.11 | ||||||||||||||||||||||||
| Efficiency ratio | 73.65 | 68.37 | 76.78 | 78.33 | 71.57 | 72.77 | 72.92 | ||||||||||||||||||||||||
| CAPITAL | |||||||||||||||||||||||||||||||
| Average equity to average assets | 11.99 | % | 11.47 | % | 11.44 | % | 11.33 | % | 11.28 | % | 11.63 | % | 11.06 | % | |||||||||||||||||
| Tangible common equity to tangible assets | 11.48 | 10.99 | 10.27 | 10.27 | 10.30 | 11.48 | 10.30 | ||||||||||||||||||||||||
| Tier 1 capital ratio | 11.2 | (6 | ) | 10.9 | 10.7 | 10.3 | 9.7 | 11.2 | (6 | ) | 9.7 | ||||||||||||||||||||
| Total risk based capital ratio | 14.2 | (6 | ) | 14.0 | 13.8 | 13.3 | 12.5 | 14.2 | (6 | ) | 12.5 | ||||||||||||||||||||
| Number of common shares outstanding - basic | 25,716,418 | 25,654,521 | 25,535,013 | 25,093,135 | 24,950,099 | 25,716,418 | 24,950,099 | ||||||||||||||||||||||||
| Number of common shares outstanding - diluted | 25,967,575 | 25,931,671 | 25,836,809 | 25,673,841 | 25,342,883 | 25,967,575 | 25,342,883 | ||||||||||||||||||||||||
| ASSET QUALITY | |||||||||||||||||||||||||||||||
| Allowance for loan losses to loans held for investment | 0.99 | % | 1.11 | % | 1.05 | % | 1.04 | % | 0.92 | % | 0.99 | % | 0.92 | % | |||||||||||||||||
| Net charge-offs to average loans (5) | 0.68 | 0.01 | 0.26 | 0.03 | 0.06 | 0.32 | 0.13 | ||||||||||||||||||||||||
| NPAs to total assets | 0.23 | 0.52 | 0.21 | 0.13 | 0.09 | 0.23 | 0.09 | ||||||||||||||||||||||||
| (1)Interest income on tax-exempt securities has been increased to reflect comparable interest on taxable securities. The rate used was 35%, reflecting the statutory federal income tax rate. (2)Excludes gain on sale of branches. (3)Excludes merger related and divestiture expenses. (4)Excludes effect of acquisition related intangibles. (5)Annualized. (6)Amounts are estimates as of 9/30/17. | |||||||||||||||||||||||||||||||
| ATLANTIC CAPITAL BANCSHARES, INC. | ||||||||||||||||
| Consolidated Balance Sheets (unaudited) | ||||||||||||||||
| September 30, | June 30, | December 31, | September 30, | |||||||||||||
| (in thousands, except share data) | 2017 | 2017 | 2016 | 2016 | ||||||||||||
| ASSETS | ||||||||||||||||
| Cash and due from banks | $ | 35,504 | $ | 45,008 | $ | 36,790 | $ | 44,563 | ||||||||
| Interest-bearing deposits in banks | 40,558 | 36,171 | 118,039 | 75,750 | ||||||||||||
| Other short-term investments | 5,189 | 17,459 | 10,896 | 23,159 | ||||||||||||
| Cash and cash equivalents | 81,251 | 98,638 | 165,725 | 143,472 | ||||||||||||
| Investment securities available-for-sale | 447,005 | 450,273 | 347,705 | 348,484 | ||||||||||||
| Other investments | 35,818 | 26,741 | 23,806 | 26,370 | ||||||||||||
| Loans held for sale | 3,274 | 1,744 | 35,219 | 46,600 | ||||||||||||
| Loans held for investment | 1,905,432 | 1,962,091 | 1,981,330 | 2,008,102 | ||||||||||||
| Less: allowance for loan losses | (18,870 | ) | (21,870 | ) | (20,595 | ) | (18,534 | ) | ||||||||
| Loans held for investment, net | 1,886,562 | 1,940,221 | 1,960,735 | 1,989,568 | ||||||||||||
| Branch premises held for sale | — | — | 2,995 | 5,201 | ||||||||||||
| Premises and equipment, net | 11,747 | 11,997 | 11,958 | 15,213 | ||||||||||||
| Bank owned life insurance | 63,284 | 62,901 | 62,160 | 61,766 | ||||||||||||
| Goodwill and intangible assets, net | 27,945 | 28,446 | 29,567 | 30,071 | ||||||||||||
| Other real estate owned | 1,494 | 1,819 | 1,872 | 1,727 | ||||||||||||
| Other assets | 80,032 | 79,795 | 85,801 | 92,772 | ||||||||||||
| Total assets | $ | 2,638,412 | $ | 2,702,575 | $ | 2,727,543 | $ | 2,761,244 | ||||||||
| LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||||||||||||
| Deposits: | ||||||||||||||||
| Noninterest-bearing demand | $ | 599,292 | $ | 612,744 | $ | 643,471 | $ | 557,783 | ||||||||
| Interest-bearing checking | 270,740 | 250,254 | 264,062 | 260,531 | ||||||||||||
| Savings | 30,131 | 30,170 | 27,932 | 29,658 | ||||||||||||
| Money market | 865,238 | 882,824 | 912,493 | 974,072 | ||||||||||||
| Time | 144,250 | 142,915 | 157,810 | 172,348 | ||||||||||||
| Brokered deposits | 193,994 | 195,047 | 200,223 | 194,464 | ||||||||||||
| Deposits to be assumed in branch sale | — | — | 31,589 | — | ||||||||||||
| Total deposits | 2,103,645 | 2,113,954 | 2,237,580 | 2,188,856 | ||||||||||||
| Federal funds purchased and securities sold under agreements to repurchase | — | 15,000 | — | — | ||||||||||||
| Federal Home Loan Bank borrowings | 125,000 | 180,000 | 110,000 | 170,000 | ||||||||||||
| Long-term debt | 49,493 | 49,451 | 49,366 | 49,324 | ||||||||||||
| Other liabilities | 35,520 | 24,735 | 26,939 | 44,601 | ||||||||||||
| Total liabilities | 2,313,658 | 2,383,140 | 2,423,885 | 2,452,781 | ||||||||||||
| SHAREHOLDERS' EQUITY | ||||||||||||||||
| Preferred stock, no par value; 10,000,000 shares authorized; no shares issued and outstanding as of September 30, 2017, June 30, 2017, December 31, 2016, and September 30, 2016 | — | — | — | — | ||||||||||||
| Common stock, no par value; 100,000,000 shares authorized; 25,716,418, 25,654,521, 25,093,135, and 24,950,099 shares issued and outstanding as of September 30, 2017, June 30, 2017, December 31, 2016, and September 30, 2016, respectively | 298,469 | 297,610 | 292,747 | 290,835 | ||||||||||||
| Retained earnings | 28,147 | 24,095 | 16,536 | 14,927 | ||||||||||||
| Accumulated other comprehensive income (loss) | (1,862 | ) | (2,270 | ) | (5,625 | ) | 2,701 | |||||||||
| Total shareholders’ equity | 324,754 | 319,435 | 303,658 | 308,463 | ||||||||||||
| TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | $ | 2,638,412 | $ | 2,702,575 | $ | 2,727,543 | $ | 2,761,244 | ||||||||
| 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, 2017 | June 30, 2017 | March 31, 2017 | December 31, 2016 | September 30, 2016 | September 30, 2017 | September 30, 2016 | ||||||||||||||||||||||
| INTEREST INCOME | ||||||||||||||||||||||||||||
| Loans, including fees | $ | 21,491 | $ | 21,361 | $ | 19,994 | $ | 20,363 | $ | 20,511 | $ | 62,846 | $ | 60,418 | ||||||||||||||
| Investment securities available-for-sale | 2,298 | 2,355 | 2,018 | 1,477 | 1,293 | 6,671 | 4,221 | |||||||||||||||||||||
| Interest and dividends on other interest‑earning assets | 562 | 606 | 449 | 467 | 491 | 1,617 | 1,271 | |||||||||||||||||||||
| Total interest income | 24,351 | 24,322 | 22,461 | 22,307 | 22,295 | 71,134 | 65,910 | |||||||||||||||||||||
| INTEREST EXPENSE | ||||||||||||||||||||||||||||
| Interest on deposits | 2,693 | 2,481 | 2,047 | 1,929 | 1,956 | 7,221 | 5,470 | |||||||||||||||||||||
| Interest on Federal Home Loan Bank advances | 459 | 452 | 302 | 234 | 133 | 1,213 | 324 | |||||||||||||||||||||
| Interest on federal funds purchased and securities sold under agreements to repurchase | 84 | 76 | 36 | 38 | 37 | 196 | 191 | |||||||||||||||||||||
| Interest on long-term debt | 824 | 824 | 823 | 828 | 815 | 2,471 | 2,457 | |||||||||||||||||||||
| Other | — | — | — | — | — | — | 38 | |||||||||||||||||||||
| Total interest expense | 4,060 | 3,833 | 3,208 | 3,029 | 2,941 | 11,101 | 8,480 | |||||||||||||||||||||
| NET INTEREST INCOME BEFORE PROVISION FOR LOAN LOSSES | 20,291 | 20,489 | 19,253 | 19,278 | 19,354 | 60,033 | 57,430 | |||||||||||||||||||||
| Provision for loan losses | 322 | 1,980 | 634 | 2,208 | 463 | 2,936 | 1,608 | |||||||||||||||||||||
| NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES | 19,969 | 18,509 | 18,619 | 17,070 | 18,891 | 57,097 | 55,822 | |||||||||||||||||||||
| NONINTEREST INCOME | ||||||||||||||||||||||||||||
| Service charges | 1,247 | 1,274 | 1,349 | 1,327 | 1,270 | 3,870 | 4,160 | |||||||||||||||||||||
| Gains (losses) on sale of securities available-for-sale | (80 | ) | — | — | — | — | (80 | ) | 44 | |||||||||||||||||||
| Gains on sale of other assets | 44 | 666 | 78 | 238 | 71 | 788 | 150 | |||||||||||||||||||||
| Mortgage income | 320 | 388 | 257 | 499 | 632 | 965 | 1,418 | |||||||||||||||||||||
| Trust income | 437 | 488 | 407 | 350 | 361 | 1,332 | 1,061 | |||||||||||||||||||||
| Derivatives income | (3 | ) | 116 | (51 | ) | 346 | 69 | 62 | 232 | |||||||||||||||||||
| Bank owned life insurance | 384 | 384 | 378 | 395 | 424 | 1,146 | 1,215 | |||||||||||||||||||||
| SBA lending activities | 888 | 1,171 | 1,227 | 599 | 959 | 3,286 | 3,043 | |||||||||||||||||||||
| TriNet lending activities | 20 | 20 | 20 | 357 | — | 60 | 1,144 | |||||||||||||||||||||
| Gains on sale of branches | — | 302 | — | — | — | 302 | 3,885 | |||||||||||||||||||||
| Other noninterest income | 220 | 478 | 192 | 319 | 216 | 890 | 950 | |||||||||||||||||||||
| Total noninterest income | 3,477 | 5,287 | 3,857 | 4,430 | 4,002 | 12,621 | 17,302 | |||||||||||||||||||||
| NONINTEREST EXPENSE | ||||||||||||||||||||||||||||
| Salaries and employee benefits | 10,409 | 10,603 | 11,065 | 11,269 | 10,059 | 32,077 | 31,034 | |||||||||||||||||||||
| Occupancy | 1,129 | 1,074 | 1,230 | 995 | 1,235 | 3,433 | 3,609 | |||||||||||||||||||||
| Equipment and software | 776 | 996 | 805 | 694 | 862 | 2,577 | 2,272 | |||||||||||||||||||||
| Professional services | 1,595 | 973 | 904 | 968 | 442 | 3,472 | 1,950 | |||||||||||||||||||||
| Postage, printing and supplies | 63 | 78 | 85 | 73 | 61 | 226 | 389 | |||||||||||||||||||||
| Communications and data processing | 982 | 1,069 | 987 | 1,064 | 617 | 3,038 | 2,227 | |||||||||||||||||||||
| Marketing and business development | 272 | 179 | 270 | 247 | 269 | 721 | 853 | |||||||||||||||||||||
| FDIC premiums | 308 | 132 | 314 | 262 | 415 | 754 | 1,306 | |||||||||||||||||||||
| Merger and conversion costs | — | 304 | — | 204 | 579 | 304 | 2,538 | |||||||||||||||||||||
| Amortization of intangibles | 391 | 425 | 470 | 495 | 520 | 1,286 | 1,950 | |||||||||||||||||||||
| Foreclosed property/problem asset expense | 7 | 107 | 3 | 666 | 39 | 117 | 198 | |||||||||||||||||||||
| Other noninterest expense | 1,572 | 1,683 | 1,611 | 1,838 | 2,198 | 4,866 | 6,179 | |||||||||||||||||||||
| Total noninterest expense | 17,504 | 17,623 | 17,744 | 18,775 | 17,296 | 52,871 | 54,505 | |||||||||||||||||||||
| INCOME BEFORE PROVISION FOR INCOME TAXES | 5,942 | 6,173 | 4,732 | 2,725 | 5,597 | 16,847 | 18,619 | |||||||||||||||||||||
| Provision for income taxes | 1,890 | 1,844 | 1,502 | 1,116 | 1,889 | 5,236 | 6,833 | |||||||||||||||||||||
| NET INCOME | $ | 4,052 | $ | 4,329 | $ | 3,230 | $ | 1,609 | $ | 3,708 | $ | 11,611 | $ | 11,786 | ||||||||||||||
| Net income per common share ‑ basic | $ | 0.16 | $ | 0.17 | $ | 0.13 | $ | 0.06 | $ | 0.15 | $ | 0.45 | $ | 0.48 | ||||||||||||||
| Net income per common share ‑ diluted | $ | 0.16 | $ | 0.17 | $ | 0.13 | $ | 0.06 | $ | 0.15 | $ | 0.45 | $ | 0.47 | ||||||||||||||
| Weighted average shares - basic | 25,699,179 | 25,621,910 | 25,320,690 | 25,027,304 | 24,891,822 | 25,548,646 | 24,674,953 | |||||||||||||||||||||
| Weighted average shares - diluted | 25,890,779 | 25,831,281 | 25,672,286 | 25,407,728 | 25,260,280 | 25,799,851 | 25,106,250 | |||||||||||||||||||||
| ATLANTIC CAPITAL BANCSHARES, INC. | ||||||||||||||||||||||||
| Average Balance Sheets and Net Interest Margin Analysis | ||||||||||||||||||||||||
| Selected Financial Information | ||||||||||||||||||||||||
| Three months ended | ||||||||||||||||||||||||
| September 30, 2017 | June 30, 2017 | |||||||||||||||||||||||
| (dollars in thousands; taxable equivalent) | Average Balance | Interest Income/ Expense | Tax Equivalent Yield/Rate | Average Balance | Interest Income/ Expense | Tax Equivalent Yield/Rate | ||||||||||||||||||
| Assets | ||||||||||||||||||||||||
| Interest bearing deposits in other banks | $ | 69,839 | $ | 216 | 1.23 | % | $ | 85,935 | $ | 233 | 1.09 | % | ||||||||||||
| Other short-term investments | 13,830 | 67 | 1.92 | 23,683 | 117 | 1.98 | ||||||||||||||||||
| Investment securities: | ||||||||||||||||||||||||
| Taxable investment securities | 373,087 | 1,812 | 1.93 | 373,170 | 1,862 | 2.00 | ||||||||||||||||||
| Non-taxable investment securities(1) | 82,781 | 701 | 3.36 | 81,920 | 716 | 3.51 | ||||||||||||||||||
| Total investment securities | 455,868 | 2,513 | 2.19 | 455,090 | 2,578 | 2.27 | ||||||||||||||||||
| Total loans | 1,934,505 | 21,491 | 4.41 | 1,962,374 | 21,361 | 4.37 | ||||||||||||||||||
| FHLB and FRB stock | 18,494 | 279 | 5.99 | 19,352 | 256 | 5.31 | ||||||||||||||||||
| Total interest-earning assets | 2,492,536 | 24,566 | 3.91 | 2,546,434 | 24,545 | 3.87 | ||||||||||||||||||
| Non-earning assets | 208,851 | 215,955 | ||||||||||||||||||||||
| Total assets | $ | 2,701,387 | $ | 2,762,389 | ||||||||||||||||||||
| Liabilities | ||||||||||||||||||||||||
| Interest bearing deposits: | ||||||||||||||||||||||||
| NOW, money market, and savings | 1,192,664 | 1,886 | 0.63 | 1,183,744 | 1,641 | 0.56 | ||||||||||||||||||
| Time deposits | 143,862 | 292 | 0.81 | 149,898 | 270 | 0.72 | ||||||||||||||||||
| Brokered deposits | 156,708 | 515 | 1.30 | 198,703 | 570 | 1.15 | ||||||||||||||||||
| Total interest-bearing deposits | 1,493,234 | 2,693 | 0.72 | 1,532,345 | 2,481 | 0.65 | ||||||||||||||||||
| Total borrowings | 179,808 | 543 | 1.20 | 214,931 | 528 | 0.99 | ||||||||||||||||||
| Total long-term debt | 49,465 | 824 | 6.61 | 49,423 | 824 | 6.69 | ||||||||||||||||||
| Total interest-bearing liabilities | 1,722,507 | 4,060 | 0.94 | 1,796,699 | 3,833 | 0.86 | ||||||||||||||||||
| Demand deposits | 628,029 | 626,330 | ||||||||||||||||||||||
| Other liabilities | 27,019 | 22,535 | ||||||||||||||||||||||
| Shareholders' equity | 323,832 | 316,825 | ||||||||||||||||||||||
| Total liabilities and shareholders' equity | $ | 2,701,387 | $ | 2,762,389 | ||||||||||||||||||||
| Net interest spread | 2.97 | % | 3.01 | % | ||||||||||||||||||||
| Net interest income and net interest margin(2) | $ | 20,506 | 3.26 | % | $ | 20,712 | 3.26 | % | ||||||||||||||||
| (1) Interest revenue on tax-exempt securities has been increased to reflect comparable interest on taxable securities. The rate used was 35%, 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. | ||||||||||||||||||||||||
| Three months ended | ||||||||||||||
| September 30, 2017 | June 30, 2017 | |||||||||||||
| (dollars in thousands; taxable equivalent) | Amount | Yield | Amount | Yield | ||||||||||
| Reported interest income on loans | $ | 21,491 | 4.41 | % | $ | 21,361 | 4.37 | % | ||||||
| Less: accretion of loan acquisition discounts | (343 | ) | (629 | ) | ||||||||||
| Core interest income on loans | $ | 21,148 | 4.34 | % | $ | 20,732 | 4.24 | % | ||||||
| Amount | Net Interest Margin | Amount | Net Interest Margin | |||||||||||
| Net interest income / net interest margin | $ | 20,506 | 3.26 | % | $ | 20,712 | 3.26 | % | ||||||
| Less: | ||||||||||||||
| Accretion of loan acquisition discounts | (343 | ) | (629 | ) | ||||||||||
| Accretion of time deposit premium | (75 | ) | (86 | ) | ||||||||||
| Net interest income / net interest margin excluding purchase accounting | $ | 20,088 | 3.20 | % | $ | 19,997 | 3.15 | % | ||||||
| ATLANTIC CAPITAL BANCSHARES, INC. | ||||||||||||||||||||||||
| Average Balance Sheets and Net Interest Margin Analysis | ||||||||||||||||||||||||
| Selected Financial Information | ||||||||||||||||||||||||
| Nine months ended | ||||||||||||||||||||||||
| September 30, 2017 | September 30, 2016 | |||||||||||||||||||||||
| (dollars in thousands; taxable equivalent) | Average Balance | Interest Income/ Expense | Tax Equivalent Yield/Rate | Average Balance | Interest Income/ Expense | Tax Equivalent Yield/Rate | ||||||||||||||||||
| Assets | ||||||||||||||||||||||||
| Interest bearing deposits in other banks | $ | 76,079 | $ | 614 | 1.08 | % | $ | 100,279 | $ | 481 | 0.64 | % | ||||||||||||
| Other short-term investments | 16,198 | 231 | 1.91 | 24,120 | 244 | 1.35 | ||||||||||||||||||
| Investment securities: | ||||||||||||||||||||||||
| Taxable investment securities | 362,080 | 5,197 | 1.92 | 337,263 | 3,714 | 1.47 | ||||||||||||||||||
| Non-taxable investment securities(1) | 81,485 | 2,167 | 3.56 | 34,945 | 768 | 2.94 | ||||||||||||||||||
| Total investment securities | 443,565 | 7,364 | 2.22 | 372,208 | 4,482 | 1.61 | ||||||||||||||||||
| Total loans | 1,948,700 | 62,846 | 4.31 | 1,965,092 | 60,418 | 4.11 | ||||||||||||||||||
| FHLB and FRB stock | 19,147 | 772 | 5.39 | 13,825 | 546 | 5.28 | ||||||||||||||||||
| Total interest-earning assets | 2,503,689 | 71,827 | 3.84 | 2,475,524 | 66,171 | 3.57 | ||||||||||||||||||
| Non-earning assets | 215,830 | 229,146 | ||||||||||||||||||||||
| Total assets | $ | 2,719,519 | $ | 2,704,670 | ||||||||||||||||||||
| Liabilities | ||||||||||||||||||||||||
| Interest bearing deposits: | ||||||||||||||||||||||||
| NOW, money market, and savings | 1,171,369 | 4,842 | 0.55 | 1,182,520 | 3,646 | 0.41 | ||||||||||||||||||
| Time deposits | 152,190 | 833 | 0.73 | 221,937 | 654 | 0.39 | ||||||||||||||||||
| Brokered deposits | 182,195 | 1,546 | 1.13 | 210,803 | 1,170 | 0.74 | ||||||||||||||||||
| Total interest-bearing deposits | 1,505,754 | 7,221 | 0.64 | 1,615,260 | 5,470 | 0.45 | ||||||||||||||||||
| Total borrowings | 196,352 | 1,409 | 0.96 | 156,148 | 553 | 0.47 | ||||||||||||||||||
| Total long-term debt | 49,423 | 2,471 | 6.68 | 49,254 | 2,457 | 6.66 | ||||||||||||||||||
| Total interest-bearing liabilities | 1,751,529 | 11,101 | 0.85 | 1,820,662 | 8,480 | 0.62 | ||||||||||||||||||
| Demand deposits | 624,923 | 549,217 | ||||||||||||||||||||||
| Other liabilities | 26,706 | 35,743 | ||||||||||||||||||||||
| Shareholders' equity | 316,361 | 299,048 | ||||||||||||||||||||||
| Total liabilities and shareholders' equity | $ | 2,719,519 | $ | 2,704,670 | ||||||||||||||||||||
| Net interest spread | 2.99 | % | 2.95 | % | ||||||||||||||||||||
| Net interest income and net interest margin(2) | $ | 60,726 | 3.24 | % | $ | 57,691 | 3.11 | % | ||||||||||||||||
| (1) Interest revenue on tax-exempt securities has been increased to reflect comparable interest on taxable securities. The rate used was 35%, 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. | ||||||||||||||||||||||||
| Nine months ended | ||||||||||||||
| September 30, 2017 | September 30, 2016 | |||||||||||||
| (dollars in thousands; taxable equivalent) | Amount | Yield | Amount | Yield | ||||||||||
| Reported interest income on loans | $ | 62,846 | 4.31 | % | $ | 60,418 | 4.11 | % | ||||||
| Less: accretion of loan acquisition discounts | (1,729 | ) | (1,987 | ) | ||||||||||
| Core interest income on loans | $ | 61,117 | 4.19 | % | $ | 58,431 | 3.97 | % | ||||||
| Amount | Net Interest Margin | Amount | Net Interest Margin | |||||||||||
| Net interest income / net interest margin | $ | 60,726 | 3.24 | % | $ | 57,691 | 3.11 | % | ||||||
| Less: | ||||||||||||||
| Accretion of loan acquisition discounts | (1,729 | ) | (1,987 | ) | ||||||||||
| Accretion of time deposit premium | (280 | ) | (712 | ) | ||||||||||
| Net interest income / net interest margin excluding purchase accounting | $ | 58,717 | 3.14 | % | $ | 54,992 | 2.97 | % | ||||||
| ATLANTIC CAPITAL BANCSHARES, INC. | ||||||||||||||||||||||||||||
| Period End Loans | ||||||||||||||||||||||||||||
| (dollars in thousands) | September 30, 2017 | June 30, 2017 | March 31, 2017 | December 31, 2016 | September 30, 2016 | Linked Quarter Change | Year Over Year Change | |||||||||||||||||||||
| Loans held for sale | ||||||||||||||||||||||||||||
| Loans held for sale | $ | 3,274 | $ | 1,744 | $ | 1,297 | $ | 4,302 | $ | 46,600 | $ | 1,530 | $ | (43,326 | ) | |||||||||||||
| Branch loans held for sale | — | — | 27,944 | 30,917 | — | — | — | |||||||||||||||||||||
| Total loans held for sale | $ | 3,274 | $ | 1,744 | $ | 29,241 | $ | 35,219 | $ | 46,600 | $ | 1,530 | $ | (43,326 | ) | |||||||||||||
| Loans held for investment | ||||||||||||||||||||||||||||
| Commercial loans: | ||||||||||||||||||||||||||||
| Commercial and industrial | $ | 562,426 | $ | 578,888 | $ | 544,911 | $ | 531,061 | $ | 533,632 | $ | (16,462 | ) | $ | 28,794 | |||||||||||||
| Commercial real estate: | ||||||||||||||||||||||||||||
| Multifamily | 91,219 | 113,571 | 108,215 | 68,223 | 74,881 | (22,352 | ) | 16,338 | ||||||||||||||||||||
| Owner occupied | 348,447 | 351,733 | 348,888 | 352,523 | 337,277 | (3,286 | ) | 11,170 | ||||||||||||||||||||
| Investment | 505,188 | 517,571 | 478,485 | 438,032 | 451,125 | (12,383 | ) | 54,063 | ||||||||||||||||||||
| Construction and land: | ||||||||||||||||||||||||||||
| 1-4 family residential construction | 9,644 | 11,711 | 11,799 | 10,335 | 11,273 | (2,067 | ) | (1,629 | ) | |||||||||||||||||||
| Other construction, development, and land | 122,436 | 113,347 | 123,838 | 209,017 | 202,063 | 9,089 | (79,627 | ) | ||||||||||||||||||||
| Mortgage warehouse loans | 41,551 | 47,992 | 58,357 | 147,519 | 171,251 | (6,441 | ) | (129,700 | ) | |||||||||||||||||||
| Total commercial loans | 1,680,911 | 1,734,813 | 1,674,493 | 1,756,710 | 1,781,502 | (53,902 | ) | (100,591 | ) | |||||||||||||||||||
| Residential: | ||||||||||||||||||||||||||||
| Residential mortgages | 101,976 | 101,798 | 99,665 | 101,921 | 100,046 | 178 | 1,930 | |||||||||||||||||||||
| Home equity | 78,773 | 79,769 | 81,438 | 77,358 | 78,952 | (996 | ) | (179 | ) | |||||||||||||||||||
| Total residential loans | 180,749 | 181,567 | 181,103 | 179,279 | 178,998 | (818 | ) | 1,751 | ||||||||||||||||||||
| Consumer | 31,750 | 31,981 | 32,525 | 27,338 | 30,453 | (231 | ) | 1,297 | ||||||||||||||||||||
| Other | 16,106 | 18,013 | 17,611 | 21,565 | 20,736 | (1,907 | ) | (4,630 | ) | |||||||||||||||||||
| 1,909,516 | 1,966,374 | 1,905,732 | 1,984,892 | 2,011,689 | (56,858 | ) | (102,173 | ) | ||||||||||||||||||||
| Less net deferred fees and other unearned income | (4,084 | ) | (4,283 | ) | (4,008 | ) | (3,562 | ) | (3,587 | ) | 199 | (497 | ) | |||||||||||||||
| Total loans held for investment | $ | 1,905,432 | $ | 1,962,091 | $ | 1,901,724 | $ | 1,981,330 | $ | 2,008,102 | $ | (56,659 | ) | $ | (102,670 | ) | ||||||||||||
| Total loans | $ | 1,908,706 | $ | 1,963,835 | $ | 1,930,965 | $ | 2,016,549 | $ | 2,054,702 | $ | (55,129 | ) | $ | (145,996 | ) | ||||||||||||
| ATLANTIC CAPITAL BANCSHARES, INC. | |||||||||||||||||||||
| Allowance for Loan Losses Activity and Credit Quality | |||||||||||||||||||||
| 2017 | 2016 | ||||||||||||||||||||
| (dollars in thousands) | Third Quarter | Second Quarter | First Quarter | Fourth Quarter | Third Quarter | ||||||||||||||||
| Balance at beginning of period | $ | 21,870 | $ | 19,939 | $ | 20,595 | $ | 18,534 | $ | 18,377 | |||||||||||
| Provision for loan losses | 314 | 2,048 | 565 | 2,134 | 463 | ||||||||||||||||
| Provision for PCI loan losses | 8 | (68 | ) | 69 | 74 | — | |||||||||||||||
| Loans charged-off: | |||||||||||||||||||||
| Commercial and industrial | (3,292 | ) | — | (781 | ) | — | (61 | ) | |||||||||||||
| Commercial real estate | — | — | (132 | ) | 24 | (226 | ) | ||||||||||||||
| Construction and land | (16 | ) | — | — | — | — | |||||||||||||||
| Residential mortgages | — | — | (46 | ) | — | — | |||||||||||||||
| Home equity | (31 | ) | (8 | ) | — | — | (9 | ) | |||||||||||||
| Consumer | (7 | ) | (57 | ) | (332 | ) | (158 | ) | (60 | ) | |||||||||||
| Other | — | — | — | — | (5 | ) | |||||||||||||||
| Total loans charged-off | (3,346 | ) | (65 | ) | (1,291 | ) | (134 | ) | (361 | ) | |||||||||||
| Recoveries on loans previously charged‑off: | |||||||||||||||||||||
| Construction and land | 15 | — | — | — | 12 | ||||||||||||||||
| Commercial and industrial | 1 | 7 | — | — | 2 | ||||||||||||||||
| Commercial real estate | — | 2 | — | (15 | ) | 20 | |||||||||||||||
| Residential mortgages | — | 1 | — | — | 5 | ||||||||||||||||
| Home equity | — | 1 | — | — | 2 | ||||||||||||||||
| Consumer | 8 | 5 | 1 | 2 | 12 | ||||||||||||||||
| Other | — | — | — | — | 2 | ||||||||||||||||
| Total recoveries | 24 | 16 | 1 | (13 | ) | 55 | |||||||||||||||
| Net charge-offs | (3,322 | ) | (49 | ) | (1,290 | ) | (147 | ) | (306 | ) | |||||||||||
| Balance at period end | $ | 18,870 | $ | 21,870 | $ | 19,939 | $ | 20,595 | $ | 18,534 | |||||||||||
| Loans held for investment | |||||||||||||||||||||
| PCI Loans | $ | 12,090 | $ | 11,510 | $ | 11,841 | $ | 15,253 | $ | 17,237 | |||||||||||
| Non-PCI Loans | 1,893,342 | 1,950,581 | 1,889,883 | 1,966,077 | 1,990,865 | ||||||||||||||||
| $ | 1,905,432 | $ | 1,962,091 | $ | 1,901,724 | $ | 1,981,330 | $ | 2,008,102 | ||||||||||||
| Non-performing loans - PCI | $ | 1,289 | $ | 1,310 | $ | 1,684 | $ | 2,446 | $ | 2,348 | |||||||||||
| Non-performing loans - Non-PCI | $ | 4,553 | $ | 12,300 | $ | 3,983 | $ | 1,615 | $ | 790 | |||||||||||
| Foreclosed properties (OREO) | 1,494 | 1,819 | 1,869 | 1,872 | 1,727 | ||||||||||||||||
| Total nonperforming assets | $ | 6,047 | $ | 14,119 | $ | 5,852 | $ | 3,487 | $ | 2,517 | |||||||||||
| Allowance for loan losses to loans held for investment | 0.99 | % | 1.11 | % | 1.05 | % | 1.04 | % | 0.92 | % | |||||||||||
| Net charge-offs to average loans (1) | 0.68 | 0.01 | 0.26 | 0.03 | 0.06 | ||||||||||||||||
| Nonperforming loans as a percentage of total loans (2) | 0.24 | 0.63 | 0.21 | 0.08 | 0.04 | ||||||||||||||||
| Nonperforming assets as a percentage of total assets (2) | 0.23 | 0.52 | 0.21 | 0.13 | 0.09 | ||||||||||||||||
| (1)Annualized. (2)Excludes non-performing PCI loans. | |||||||||||||||||||||
| ATLANTIC CAPITAL BANCSHARES, INC. | ||||||||||||||||||||||||||||
| Period End Deposits | ||||||||||||||||||||||||||||
| (dollars in thousands) | September 30, 2017 | June 30, 2017 | March 31, 2017 | December 31, 2016 | September 30, 2016 | Linked Quarter Change | Year Over Year Change | |||||||||||||||||||||
| DDA | $ | 599,292 | $ | 612,744 | $ | 606,386 | $ | 643,471 | $ | 557,783 | $ | (13,452 | ) | $ | 41,509 | |||||||||||||
| NOW | 270,740 | 250,254 | 259,760 | 264,062 | 260,531 | 20,486 | 10,209 | |||||||||||||||||||||
| Savings | 30,131 | 30,170 | 30,756 | 27,932 | 29,658 | (39 | ) | 473 | ||||||||||||||||||||
| Money Market | 865,238 | 882,824 | 916,390 | 912,493 | 974,072 | (17,586 | ) | (108,834 | ) | |||||||||||||||||||
| Time | 144,250 | 142,915 | 150,867 | 157,810 | 172,348 | 1,335 | (28,098 | ) | ||||||||||||||||||||
| Brokered | 193,994 | 195,047 | 209,385 | 200,223 | 194,464 | (1,053 | ) | (470 | ) | |||||||||||||||||||
| Deposits to be assumed in branch sale | — | — | 29,495 | 31,589 | — | — | — | |||||||||||||||||||||
| Total Deposits | $ | 2,103,645 | $ | 2,113,954 | $ | 2,203,039 | $ | 2,237,580 | $ | 2,188,856 | $ | (10,309 | ) | $ | (85,211 | ) | ||||||||||||
| Payments Clients | $ | 239,079 | $ | 250,104 | $ | 321,899 | $ | 347,833 | $ | 212,049 | $ | (11,025 | ) | $ | 27,030 | |||||||||||||
| Average Deposits(1) | ||||||||||||||||||||||||||||
| 2017 | 2016 | Linked Quarter Change | Year Over Year Change | |||||||||||||||||||||||||
| (dollars in thousands) | Third Quarter | Second Quarter | First Quarter | Fourth Quarter | Third Quarter | |||||||||||||||||||||||
| DDA | $ | 628,029 | $ | 626,330 | $ | 620,325 | $ | 591,166 | $ | 555,008 | $ | 1,699 | $ | 73,021 | ||||||||||||||
| NOW | 291,810 | 293,160 | 290,862 | 253,187 | 282,701 | (1,350 | ) | 9,109 | ||||||||||||||||||||
| Savings | 30,236 | 30,468 | 30,306 | 29,741 | 30,692 | (232 | ) | (456 | ) | |||||||||||||||||||
| Money Market | 870,618 | 860,116 | 815,920 | 853,281 | 923,435 | 10,502 | (52,817 | ) | ||||||||||||||||||||
| Time | 143,862 | 149,898 | 163,021 | 169,677 | 175,135 | (6,036 | ) | (31,273 | ) | |||||||||||||||||||
| Brokered | 156,708 | 198,703 | 191,558 | 197,833 | 196,598 | (41,995 | ) | (39,890 | ) | |||||||||||||||||||
| Total Deposits | $ | 2,121,263 | $ | 2,158,675 | $ | 2,111,992 | $ | 2,094,885 | $ | 2,163,569 | $ | (37,412 | ) | $ | (42,306 | ) | ||||||||||||
| Payments Clients | $ | 209,851 | $ | 244,157 | $ | 273,630 | $ | 211,000 | $ | 184,895 | $ | (34,306 | ) | $ | 24,956 | |||||||||||||
| Noninterest bearing deposits as a percentage of average deposits | 29.6 | % | 29.0 | % | 29.4 | % | 28.2 | % | 25.7 | % | ||||||||||||||||||
| Cost of deposits | 0.50 | % | 0.46 | % | 0.39 | % | 0.37 | % | 0.36 | % | ||||||||||||||||||
| (1) Includes average balances of deposits to be assumed in branch sale. | ||||||||||||||||||||||||||||
| ATLANTIC CAPITAL BANCSHARES, INC. | |||||||||||||||||||||||||||||
| Non-GAAP Performance and Financial Measures Reconciliation | |||||||||||||||||||||||||||||
| (in thousands, except share and per share data) | 2017 | 2016 | For the nine months ended September 30, | ||||||||||||||||||||||||||
| Third Quarter | Second Quarter | First Quarter | Fourth Quarter | Third Quarter | 2017 | 2016 | |||||||||||||||||||||||
| Taxable equivalent interest income reconciliation | |||||||||||||||||||||||||||||
| Interest income - GAAP | $ | 24,351 | $ | 24,322 | $ | 22,461 | $ | 22,307 | $ | 22,295 | $ | 71,134 | $ | 65,910 | |||||||||||||||
| Taxable equivalent adjustment | 215 | 223 | 255 | 223 | 133 | 693 | 261 | ||||||||||||||||||||||
| Interest income - taxable equivalent | $ | 24,566 | $ | 24,545 | $ | 22,716 | $ | 22,530 | $ | 22,428 | $ | 71,827 | $ | 66,171 | |||||||||||||||
| Taxable equivalent net interest income reconciliation | |||||||||||||||||||||||||||||
| Net interest income - GAAP | $ | 20,291 | $ | 20,489 | $ | 19,253 | $ | 19,278 | $ | 19,354 | $ | 60,033 | $ | 57,430 | |||||||||||||||
| Taxable equivalent adjustment | 215 | 223 | 255 | 223 | 133 | 693 | 261 | ||||||||||||||||||||||
| Net interest income - taxable equivalent | $ | 20,506 | $ | 20,712 | $ | 19,508 | $ | 19,501 | $ | 19,487 | $ | 60,726 | $ | 57,691 | |||||||||||||||
| Taxable equivalent net interest margin excluding purchase accounting | |||||||||||||||||||||||||||||
| Taxable equivalent net interest margin | 3.26 | % | 3.26 | % | 3.20 | % | 3.11 | % | 3.12 | % | 3.24 | % | 3.11 | % | |||||||||||||||
| Impact of purchase accounting | (0.06 | ) | (0.11 | ) | (0.13 | ) | (0.12 | ) | (0.12 | ) | (0.10 | ) | (0.14 | ) | |||||||||||||||
| Taxable equivalent net interest margin excluding purchase accounting | 3.20 | % | 3.15 | % | 3.07 | % | 2.99 | % | 3.00 | % | 3.14 | % | 2.97 | % | |||||||||||||||
| Operating noninterest income reconciliation | |||||||||||||||||||||||||||||
| Noninterest income - GAAP | $ | 3,477 | $ | 5,287 | $ | 3,857 | $ | 4,430 | $ | 4,002 | $ | 12,621 | $ | 17,302 | |||||||||||||||
| Gain on sale of branches | — | — | — | — | — | — | (3,885 | ) | |||||||||||||||||||||
| Operating noninterest income | $ | 3,477 | $ | 5,287 | $ | 3,857 | $ | 4,430 | $ | 4,002 | $ | 12,621 | $ | 13,417 | |||||||||||||||
| Operating noninterest expense reconciliation | |||||||||||||||||||||||||||||
| Noninterest expense - GAAP | $ | 17,504 | $ | 17,623 | $ | 17,744 | $ | 18,775 | $ | 17,296 | $ | 52,871 | $ | 54,505 | |||||||||||||||
| Merger-related expenses | — | — | — | (204 | ) | (579 | ) | — | (2,538 | ) | |||||||||||||||||||
| Divestiture expenses | — | — | — | — | — | — | (305 | ) | |||||||||||||||||||||
| Operating noninterest expense | $ | 17,504 | $ | 17,623 | $ | 17,744 | $ | 18,571 | $ | 16,717 | $ | 52,871 | $ | 51,662 | |||||||||||||||
| Operating income before income taxes reconciliation | |||||||||||||||||||||||||||||
| Income before income taxes - GAAP | $ | 5,942 | $ | 6,173 | $ | 4,732 | $ | 2,725 | $ | 5,597 | $ | 16,847 | $ | 18,619 | |||||||||||||||
| Taxable equivalent adjustment | 215 | 223 | 255 | 223 | 133 | 693 | 261 | ||||||||||||||||||||||
| Merger-related expenses | — | — | — | 204 | 579 | — | 2,538 | ||||||||||||||||||||||
| Divestiture expenses | — | — | — | — | — | — | 305 | ||||||||||||||||||||||
| Gain on sale of branches | — | — | — | — | — | — | (3,885 | ) | |||||||||||||||||||||
| Operating income before income taxes | $ | 6,157 | $ | 6,396 | $ | 4,987 | $ | 3,152 | $ | 6,309 | $ | 17,540 | $ | 17,838 | |||||||||||||||
| Operating income tax reconciliation | |||||||||||||||||||||||||||||
| Income tax expense - GAAP | $ | 1,890 | $ | 1,844 | $ | 1,502 | $ | 1,116 | $ | 1,889 | $ | 5,236 | $ | 6,833 | |||||||||||||||
| Taxable equivalent adjustment | 215 | 223 | 255 | 223 | 133 | 693 | 261 | ||||||||||||||||||||||
| Merger related expenses, tax benefit | — | — | — | 78 | 223 | — | 979 | ||||||||||||||||||||||
| Divestiture expenses, tax benefit | — | — | — | — | — | — | 118 | ||||||||||||||||||||||
| Gain on sale of branches, tax expense | — | — | — | — | — | — | (1,500 | ) | |||||||||||||||||||||
| Operating income tax expense | $ | 2,105 | $ | 2,067 | $ | 1,757 | $ | 1,417 | $ | 2,245 | $ | 5,929 | $ | 6,691 | |||||||||||||||
| Operating net income reconciliation | |||||||||||||||||||||||||||||
| Net income - GAAP | $ | 4,052 | $ | 4,329 | $ | 3,230 | $ | 1,609 | $ | 3,708 | $ | 11,611 | $ | 11,786 | |||||||||||||||
| Merger related expenses, net of income tax | — | — | — | 126 | 356 | — | 1,559 | ||||||||||||||||||||||
| Divestiture expenses, net of income tax | — | — | — | — | — | — | 187 | ||||||||||||||||||||||
| Gain on sale of branches, net of income tax | — | — | — | — | — | — | (2,385 | ) | |||||||||||||||||||||
| Operating net income | $ | 4,052 | $ | 4,329 | $ | 3,230 | $ | 1,735 | $ | 4,064 | $ | 11,611 | $ | 11,147 | |||||||||||||||
| Operating diluted earnings per share reconciliation | |||||||||||||||||||||||||||||
| Diluted earnings per share - GAAP | $ | 0.16 | $ | 0.17 | $ | 0.13 | $ | 0.06 | $ | 0.15 | $ | 0.45 | $ | 0.47 | |||||||||||||||
| Merger related expenses | — | — | — | 0.01 | 0.01 | — | 0.07 | ||||||||||||||||||||||
| Net gain on sale of branches | — | — | — | — | — | — | (0.10 | ) | |||||||||||||||||||||
| Diluted earnings per share - operating | $ | 0.16 | $ | 0.17 | $ | 0.13 | $ | 0.07 | $ | 0.16 | $ | 0.45 | $ | 0.44 | |||||||||||||||
| Tangible book value per common share reconciliation | |||||||||||||||||||||||||||||
| Total shareholders’ equity | $ | 324,754 | $ | 319,435 | $ | 310,967 | $ | 303,658 | $ | 308,463 | $ | 324,754 | $ | 308,463 | |||||||||||||||
| Intangible assets | (24,760 | ) | (25,151 | ) | (25,913 | ) | (26,383 | ) | (26,878 | ) | (24,760 | ) | (26,878 | ) | |||||||||||||||
| Total tangible common equity | $ | 299,994 | $ | 294,284 | $ | 285,054 | $ | 277,275 | $ | 281,585 | $ | 299,994 | $ | 281,585 | |||||||||||||||
| Common shares outstanding | 25,716,418 | 25,654,521 | 25,535,013 | 25,093,135 | 24,950,099 | 25,716,418 | 24,950,099 | ||||||||||||||||||||||
| Book value per common share - GAAP | $ | 12.63 | $ | 12.45 | $ | 12.18 | $ | 12.10 | $ | 12.36 | $ | 12.63 | $ | 12.36 | |||||||||||||||
| Tangible book value | 11.67 | 11.47 | 11.16 | 11.05 | 11.29 | 11.67 | 11.29 | ||||||||||||||||||||||
| Return on average equity reconciliation | |||||||||||||||||||||||||||||
| Net income - GAAP | $ | 4,052 | $ | 4,329 | $ | 3,230 | $ | 1,609 | $ | 3,708 | $ | 11,611 | $ | 11,786 | |||||||||||||||
| Merger related expenses, net of income tax | — | — | — | 126 | 356 | — | 1,559 | ||||||||||||||||||||||
| Divestiture expenses, net of income tax | — | — | — | — | — | — | 187 | ||||||||||||||||||||||
| Gain on sale of branches, net of income tax | — | — | — | — | — | — | (2,385 | ) | |||||||||||||||||||||
| Operating net income | $ | 4,052 | $ | 4,329 | $ | 3,230 | $ | 1,735 | $ | 4,064 | $ | 11,611 | $ | 11,147 | |||||||||||||||
| Average shareholders' equity | $ | 323,832 | $ | 316,825 | $ | 308,261 | $ | 308,588 | $ | 306,642 | $ | 316,361 | $ | 299,048 | |||||||||||||||
| Return on average equity - GAAP | 4.96 | % | 5.48 | % | 4.19 | % | 2.09 | % | 4.84 | % | 4.91 | % | 5.25 | % | |||||||||||||||
| Return on average equity - operating | 4.96 | 5.48 | 4.19 | 2.25 | 5.30 | 4.91 | 4.97 | ||||||||||||||||||||||
| Return on average assets reconciliation | |||||||||||||||||||||||||||||
| Net income - GAAP | $ | 4,052 | $ | 4,329 | $ | 3,230 | $ | 1,609 | $ | 3,708 | $ | 11,611 | $ | 11,786 | |||||||||||||||
| Merger related expenses, net of income tax | — | — | — | 126 | 356 | — | 1,559 | ||||||||||||||||||||||
| Divestiture expenses, net of income tax | — | — | — | — | — | — | 187 | ||||||||||||||||||||||
| Gain on sale of branches, net of income tax | — | — | — | — | — | — | (2,385 | ) | |||||||||||||||||||||
| Operating net income | $ | 4,052 | $ | 4,329 | $ | 3,230 | $ | 1,735 | $ | 4,064 | $ | 11,611 | $ | 11,147 | |||||||||||||||
| Average assets | $ | 2,701,387 | $ | 2,762,389 | $ | 2,694,715 | $ | 2,722,444 | $ | 2,717,996 | $ | 2,719,519 | $ | 2,704,670 | |||||||||||||||
| Return on average assets - GAAP | 0.60 | % | 0.63 | % | 0.48 | % | 0.24 | % | 0.55 | % | 0.57 | % | 0.58 | % | |||||||||||||||
| Return on average assets - operating | 0.60 | 0.63 | 0.48 | 0.25 | 0.60 | 0.57 | 0.55 | ||||||||||||||||||||||
| Efficiency ratio reconciliation | |||||||||||||||||||||||||||||
| Noninterest income - GAAP | $ | 3,477 | $ | 5,287 | $ | 3,857 | $ | 4,430 | $ | 4,002 | $ | 12,621 | $ | 17,302 | |||||||||||||||
| Gain on sale of branches | — | — | — | — | — | — | (3,885 | ) | |||||||||||||||||||||
| Operating noninterest income | $ | 3,477 | $ | 5,287 | $ | 3,857 | $ | 4,430 | $ | 4,002 | $ | 12,621 | $ | 13,417 | |||||||||||||||
| Noninterest expense - GAAP | $ | 17,504 | $ | 17,623 | $ | 17,744 | $ | 18,775 | $ | 17,296 | $ | 52,871 | $ | 54,505 | |||||||||||||||
| Merger-related expenses | — | — | — | (204 | ) | (579 | ) | — | (2,538 | ) | |||||||||||||||||||
| Divestiture expenses | — | — | — | — | — | — | (305 | ) | |||||||||||||||||||||
| Operating noninterest expense | $ | 17,504 | $ | 17,623 | $ | 17,744 | $ | 18,571 | $ | 16,717 | $ | 52,871 | $ | 51,662 | |||||||||||||||
| Net interest income | $ | 20,291 | $ | 20,489 | $ | 19,253 | $ | 19,278 | $ | 19,354 | $ | 60,033 | $ | 57,430 | |||||||||||||||
| Efficiency ratio | 73.65 | % | 68.37 | % | 76.78 | % | 78.33 | % | 71.57 | % | 72.77 | % | 72.92 | % | |||||||||||||||
| Tangible common equity to tangible assets reconciliation | |||||||||||||||||||||||||||||
| Total shareholders’ equity | $ | 324,754 | $ | 319,435 | $ | 310,967 | $ | 303,658 | $ | 308,463 | $ | 324,754 | $ | 308,463 | |||||||||||||||
| Intangible assets | (24,760 | ) | (25,151 | ) | (25,913 | ) | (26,383 | ) | (26,878 | ) | (24,760 | ) | (26,878 | ) | |||||||||||||||
| Total tangible common equity | $ | 299,994 | $ | 294,284 | $ | 285,054 | $ | 277,275 | $ | 281,585 | $ | 299,994 | $ | 281,585 | |||||||||||||||
| Total assets | $ | 2,638,412 | $ | 2,702,575 | $ | 2,802,078 | $ | 2,727,543 | $ | 2,761,244 | $ | 2,638,412 | $ | 2,761,244 | |||||||||||||||
| Intangible assets | (24,760 | ) | (25,151 | ) | (25,913 | ) | (26,383 | ) | (26,878 | ) | (24,760 | ) | (26,878 | ) | |||||||||||||||
| Total tangible assets | $ | 2,613,652 | $ | 2,677,424 | $ | 2,776,165 | $ | 2,701,160 | $ | 2,734,366 | $ | 2,613,652 | $ | 2,734,366 | |||||||||||||||
| Tangible common equity to tangible assets | 11.48 | % | 10.99 | % | 10.27 | % | 10.27 | % | 10.30 | % | 11.48 | % | 10.30 | % | |||||||||||||||
Contact:
Douglas L. Williams
Chief Executive Officer
404-995-6051
doug.williams@atlcapbank.com
Patrick T. Oakes
Executive Vice President and CFO
404-995-6079
patrick.oakes@atlcapbank.com