ATLANTA, Jan. 29, 2018 (GLOBE NEWSWIRE) -- Atlantic Capital Bancshares, Inc. (NASDAQ:ACBI) announced a loss of $15.3 million, or ($0.59) per diluted share for the fourth quarter of 2017, compared to net income of $4.0 million, or $0.16 per diluted share, in the third quarter of 2017. The tax reform legislation signed into law on December 22, 2017 resulted in a reduction of the value of our deferred tax asset and an increase in tax expense of $17.4 million, or ($0.67) per diluted share, in the fourth quarter of 2017. Net loss for the full year 2017 was $3.7 million, or ($0.14) per diluted share, compared to net income for the full year 2016 of $13.4 million, or $0.53 per diluted share.
Fourth Quarter Highlights
- Grew loans held for investment by $28.4 million to $1.93 billion from September 30, 2017.
- Grew commercial and industrial loans by $52.9 million to $615.4 million from September 30, 2017.
- Grew total quarterly average deposits by $73.6 million to $2.19 billion from the third quarter of 2017.
- Reported taxable equivalent net interest margin of 3.39%, an increase of 13 basis points from the third quarter of 2017.
- Decreased nonperforming assets to 0.14% of total assets from 0.23% in the third quarter of 2017.
- Recorded expense of $2.2 million related to the previously announced resignation of the President and Chief Operating Officer and a planned reduction of staff.
2017 Highlights
- Grew commercial and industrial loans by $84.3 million, or 16%, from December 31, 2016.
- Grew average noninterest bearing deposits by $71.3 million, or 13%, from 2016.
- Reported taxable equivalent net interest margin of 3.28%, an increase of 16 basis points from 2016.
- Grew income from SBA lending activities by $487,000, or 13%, from 2016.
- Completed the sale of our Cleveland Tennessee branch in the first quarter of 2017.
2018 Expectations
- Anticipate closing on the sale of the Southeast Trust Company in the second quarter of 2018, with an expected gain of approximately $1.7 million.
- Plan additional severance expense in the first quarter of 2018 from the reduction of staff and the closing of our Charlotte loan production office.
- Anticipate the consolidation of two branches in Chattanooga, Tennessee during the first quarter of 2018.
- Estimate the 2018 effective tax rate to be approximately 20%.
“Atlantic Capital’s earnings in the fourth quarter of 2017 were affected not only by the change in tax law, but also by several actions management has taken to drive growth in our core businesses, streamline the structure of our organization, and position the Company for better performance in 2018 and beyond. This disciplined focus on efficiency, alignment, and productivity will continue in our day to day management of the Company,” explained Douglas Williams, President and Chief Executive Officer.
“We are confident as we begin 2018 that the cost saving, restructuring, and new investment decisions we have made will allow us to bring our successful and focused banking strategy to the entire Atlantic Capital footprint, while providing best of class service and solutions to our clients and prospects. Our banking teams are now almost fully staffed and are better aligned for meaningful improvement in performance. Our balance sheet is strong and our credit quality is sound. We are ready for 2018.”
Income Statement
Net interest income increased to $21.1 million in the fourth quarter of 2017 from $20.3 million in the third quarter of 2017, primarily as a result of higher loan and investment yields. Net accretion income on acquired loans totaled $686,000 in the fourth quarter of 2017 compared to $343,000 in the third quarter of 2017.
Taxable equivalent net interest margin was 3.39% in the fourth quarter of 2017, an increase of 13 basis points from the third quarter of 2017. The accretion from the acquired loan discount and amortization of time deposit premium contributed 12 basis points to the net interest margin in the fourth quarter of 2017 compared to 6 basis points in the third quarter of 2017.
Loan yields in the fourth quarter of 2017 increased 20 basis points to 4.61% from the third quarter of 2017 as a result of the December increase in the fed funds rate, an increase in loan fees and an increase in accretion income. Loan fees contributed 25 basis points to the loan yield in the fourth quarter of 2017 compared to 20 basis points in the third quarter of 2017. Accretion income contributed 15 basis points to the loan yield in the fourth quarter of 2017 compared to 7 basis points in the third quarter of 2017.
The cost of total deposits in the fourth quarter of 2017 was 0.52%, an increase of 2 basis points from the third quarter of 2017. The cost of interest bearing deposits increased 1 basis point to 0.73% from the third quarter of 2017.
The provision for loan losses was $282,000 in the fourth quarter of 2017 compared to $322,000 in the third quarter of 2017. Non-performing assets to total assets improved to 0.14% in the fourth quarter of 2017, compared to 0.23% for the third quarter of 2017. The fourth quarter included a recovery of $192,000 on a $7.7 million loan relationship that was charged-off in the third quarter of 2017.
Noninterest income totaled $3.6 million in the fourth quarter of 2017, an increase of $91,000 from the third quarter of 2017. The increase included higher derivatives income of $97,000, and higher trust income of $45,000, resulting from an increase in assets under management. This was offset by a decrease in mortgage income of $30,000 due to lower residential mortgage loan sales and a decrease in SBA income of $45,000 resulting from lower loan sales.
Noninterest expense totaled $20.6 million in the fourth quarter of 2017 compared to $17.5 million in the third quarter of 2017. Salaries and employee benefits expense increased by $2.9 million in the fourth quarter of 2017 to $13.3 million. The fourth quarter salaries and benefits expense included $937,000 in severance expense, $1.3 million in expenses related to the President and Chief Operating Officer’s resignation, and the additional expense of adding new SBA and Tennessee commercial bankers.
Balance Sheet
Total loans were $1.94 billion at December 31, 2017, an increase of $26.6 million from September 30, 2017. Loans held for investment were $1.93 billion at December 31, 2017, an increase of $28.4 million from September 30, 2017, as commercial and industrial loans grew $52.9 million during the quarter due to an increase in new loan originations and increased balances on existing loans. This increase was offset by a $27.7 million decrease in investment commercial real estate and construction and land loans related to the timing of payoffs.
At December 31, 2017, the allowance for loan losses was $19.3 million, or 1.00% of loans held for investment, compared to $18.9 million, or 0.99% of loans held for investment as of September 30, 2017. Annualized net charge-offs to average loans totaled (0.04%) in the fourth third quarter of 2017 and totaled 0.23% for 2017. Nonperforming assets totaled $4.1 million, or 0.14% of total assets, as of December 31, 2017, compared to $6.0 million, or 0.23% of total assets, as of September 30, 2017.
Total average deposits for the fourth quarter of 2017 were $2.19 billion, an increase of $73.6 million from the third quarter of 2017. Average noninterest bearing deposits increased $21.2 million to $649.2 million in the fourth quarter of 2017 and accounted for 29.6% of average total deposits.
Total deposits were $2.45 billion at December 31, 2017, an increase of $347.0 million from September 30, 2017. This increase included higher than normal levels of seasonal volatility at year-end.
Earnings Conference Call
The Company will host a conference call at 10:00 a.m. EST on Monday, January 29, 2018, to discuss the financial results for the quarter ended December 31, 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; (ix) tangible common equity; and (x) tangible book value, 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 net income also excludes the revaluation of net deferred tax assets. 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, strategic focus, 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 the “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” sections in Atlantic Capital’s Annual Report on Form 10-K and Quarterly Reports on Form 10-Q. Please refer to the SEC’s website at www.sec.gov where you can review those documents.
About Atlantic Capital Bancshares
Atlantic Capital Bancshares, Inc. is a $2.9 billion publicly traded bank holding company headquartered in Atlanta, Georgia. Atlantic Capital offers banking, treasury management, capital markets, trust, and mortgage services to privately held companies and individuals in Atlanta, eastern Tennessee, and northwest Georgia. Atlantic Capital also provides specialized financial services to select clients nationally.
| ATLANTIC CAPITAL BANCSHARES, INC. | |||||||||||||||||||||||||||||||
| Selected Financial Information | |||||||||||||||||||||||||||||||
| 2017 | 2016 | For the year ended December 31, | |||||||||||||||||||||||||||||
| (in thousands, except share and per share data; taxable equivalent) | Fourth Quarter | Third Quarter | Second Quarter | First Quarter | Fourth Quarter | 2017 | 2016 | ||||||||||||||||||||||||
| INCOME SUMMARY | |||||||||||||||||||||||||||||||
| Interest income (1) | $ | 25,350 | $ | 24,566 | $ | 24,545 | $ | 22,716 | $ | 22,530 | $ | 97,177 | $ | 88,701 | |||||||||||||||||
| Interest expense | 4,028 | 4,060 | 3,833 | 3,208 | 3,029 | 15,129 | 11,509 | ||||||||||||||||||||||||
| Net interest income | 21,322 | 20,506 | 20,712 | 19,508 | 19,501 | 82,048 | 77,192 | ||||||||||||||||||||||||
| Provision for loan losses | 282 | 322 | 1,980 | 634 | 2,208 | 3,218 | 3,816 | ||||||||||||||||||||||||
| Net interest income after provision for loan losses | 21,040 | 20,184 | 18,732 | 18,874 | 17,293 | 78,830 | 73,376 | ||||||||||||||||||||||||
| Operating noninterest income (2) | 3,568 | 3,477 | 5,287 | 3,857 | 4,430 | 16,189 | 17,847 | ||||||||||||||||||||||||
| Operating noninterest expense (3) | 20,594 | 17,504 | 17,623 | 17,744 | 18,571 | 73,465 | 70,233 | ||||||||||||||||||||||||
| Operating income before income taxes | 4,014 | 6,157 | 6,396 | 4,987 | 3,152 | 21,554 | 20,990 | ||||||||||||||||||||||||
| Operating income tax expense (4) | 1,953 | 2,105 | 2,067 | 1,757 | 1,417 | 7,882 | 8,108 | ||||||||||||||||||||||||
| Operating net income (2)(3)(4) | 2,061 | 4,052 | 4,329 | 3,230 | 1,735 | 13,672 | 12,882 | ||||||||||||||||||||||||
| Merger related expenses, net of income tax | — | — | — | — | 126 | — | 1,685 | ||||||||||||||||||||||||
| Net gain on sale of branches, net of income tax | — | — | — | — | — | — | 2,198 | ||||||||||||||||||||||||
| Revaluation of net deferred tax asset | 17,398 | — | — | — | — | 17,398 | — | ||||||||||||||||||||||||
| Net income (loss) - GAAP | $ | (15,337 | ) | $ | 4,052 | $ | 4,329 | $ | 3,230 | $ | 1,609 | $ | (3,726 | ) | $ | 13,395 | |||||||||||||||
| PER SHARE DATA | |||||||||||||||||||||||||||||||
| Diluted earnings (loss) per share - GAAP | $ | (0.59 | ) | $ | 0.16 | $ | 0.17 | $ | 0.13 | $ | 0.06 | $ | (0.14 | ) | $ | 0.53 | |||||||||||||||
| Diluted earnings per share - operating (2)(3)(4) | 0.08 | 0.16 | 0.17 | 0.13 | 0.07 | 0.53 | 0.51 | ||||||||||||||||||||||||
| Book value per share | 11.99 | 12.63 | 12.45 | 12.18 | 12.10 | 11.99 | 12.10 | ||||||||||||||||||||||||
| Tangible book value per share (5) | 11.05 | 11.67 | 11.47 | 11.16 | 11.05 | 11.05 | 11.05 | ||||||||||||||||||||||||
| PERFORMANCE MEASURES | |||||||||||||||||||||||||||||||
| Return on average equity - GAAP | (18.66 | ) | % | 4.96 | % | 5.48 | % | 4.19 | % | 2.09 | % | (1.17 | ) | % | 4.44 | % | |||||||||||||||
| Return on average equity - operating (2)(3)(4) | 2.51 | 4.96 | 5.48 | 4.19 | 2.25 | 4.29 | 4.27 | ||||||||||||||||||||||||
| Return on average assets - GAAP | (2.24 | ) | 0.60 | 0.63 | 0.48 | 0.24 | (0.14 | ) | 0.49 | ||||||||||||||||||||||
| Return on average assets - operating (2)(3)(4) | 0.30 | 0.60 | 0.63 | 0.48 | 0.25 | 0.50 | 0.48 | ||||||||||||||||||||||||
| Taxable equivalent net interest margin | 3.39 | 3.26 | 3.26 | 3.20 | 3.11 | 3.28 | 3.12 | ||||||||||||||||||||||||
| Efficiency ratio | 83.45 | 73.65 | 68.37 | 76.78 | 78.33 | 75.48 | 74.28 | ||||||||||||||||||||||||
| CAPITAL | |||||||||||||||||||||||||||||||
| Average equity to average assets | 11.99 | % | 11.99 | % | 11.47 | % | 11.44 | % | 11.33 | % | 11.72 | % | 11.13 | % | |||||||||||||||||
| Tangible common equity to tangible assets | 9.91 | 11.48 | 10.99 | 10.27 | 10.27 | 9.91 | 10.27 | ||||||||||||||||||||||||
| Tier 1 capital ratio | 11.1 | (7 | ) | 11.3 | 10.9 | 10.7 | 10.3 | 11.1 | (7 | ) | 10.3 | ||||||||||||||||||||
| Total risk based capital ratio | 14.1 | (7 | ) | 14.3 | 14.0 | 13.8 | 13.3 | 14.1 | (7 | ) | 13.3 | ||||||||||||||||||||
| Number of common shares outstanding - basic | 25,712,909 | 25,716,418 | 25,654,521 | 25,535,013 | 25,093,135 | 25,712,909 | 25,093,135 | ||||||||||||||||||||||||
| Number of common shares outstanding - diluted | 25,891,225 | 25,967,575 | 25,931,671 | 25,836,809 | 25,673,841 | 25,891,225 | 25,673,841 | ||||||||||||||||||||||||
| ASSET QUALITY | |||||||||||||||||||||||||||||||
| Allowance for loan losses to loans held for investment | 1.00 | % | 0.99 | % | 1.11 | % | 1.05 | % | 1.04 | % | 1.00 | % | 1.04 | % | |||||||||||||||||
| Net charge-offs to average loans (6) | (0.04 | ) | 0.68 | 0.01 | 0.26 | 0.03 | 0.23 | 0.11 | |||||||||||||||||||||||
| NPAs to total assets | 0.14 | 0.23 | 0.52 | 0.21 | 0.13 | 0.14 | 0.13 | ||||||||||||||||||||||||
| (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 revaluation of net deferred tax asset. (5)Excludes effect of acquisition related intangibles. (6)Annualized. (7)Amounts are estimates as of 12/31/17. | |||||||||||||||||||||||||||||||
| ATLANTIC CAPITAL BANCSHARES, INC. | ||||||||||||
| Consolidated Balance Sheets (unaudited) | ||||||||||||
| December 31, | September 30, | December 31, | ||||||||||
| (in thousands, except share data) | 2017 | 2017 | 2016 | |||||||||
| ASSETS | ||||||||||||
| Cash and due from banks | $ | 38,086 | $ | 35,504 | $ | 36,790 | ||||||
| Interest-bearing deposits in banks | 281,247 | 40,558 | 118,039 | |||||||||
| Other short-term investments | 10,681 | 5,189 | 10,896 | |||||||||
| Cash and cash equivalents | 330,014 | 81,251 | 165,725 | |||||||||
| Investment securities available-for-sale | 449,117 | 447,005 | 347,705 | |||||||||
| Other investments | 32,174 | 35,818 | 23,806 | |||||||||
| Loans held for sale | 1,487 | 3,274 | 35,219 | |||||||||
| Loans held for investment | 1,933,839 | 1,905,432 | 1,981,330 | |||||||||
| Less: allowance for loan losses | (19,344 | ) | (18,870 | ) | (20,595 | ) | ||||||
| Loans held for investment, net | 1,914,495 | 1,886,562 | 1,960,735 | |||||||||
| Branch premises held for sale | — | — | 2,995 | |||||||||
| Premises and equipment, net | 12,054 | 11,747 | 11,958 | |||||||||
| Bank owned life insurance | 63,667 | 63,284 | 62,160 | |||||||||
| Goodwill and intangible assets, net | 27,633 | 27,945 | 29,567 | |||||||||
| Other real estate owned | 1,215 | 1,494 | 1,872 | |||||||||
| Other assets | 59,565 | 80,032 | 85,801 | |||||||||
| Total assets | $ | 2,891,421 | $ | 2,638,412 | $ | 2,727,543 | ||||||
| LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||||||||
| Deposits: | ||||||||||||
| Noninterest-bearing demand | $ | 732,442 | $ | 599,292 | $ | 643,471 | ||||||
| Interest-bearing checking | 306,331 | 270,740 | 264,062 | |||||||||
| Savings | 26,573 | 30,131 | 27,932 | |||||||||
| Money market | 1,117,891 | 865,238 | 912,493 | |||||||||
| Time | 138,612 | 144,250 | 157,810 | |||||||||
| Brokered deposits | 128,816 | 193,994 | 200,223 | |||||||||
| Deposits to be assumed in branch sale | — | — | 31,589 | |||||||||
| Total deposits | 2,450,665 | 2,103,645 | 2,237,580 | |||||||||
| Federal Home Loan Bank borrowings | 45,000 | 125,000 | 110,000 | |||||||||
| Long-term debt | 49,535 | 49,493 | 49,366 | |||||||||
| Other liabilities | 37,796 | 35,520 | 26,939 | |||||||||
| Total liabilities | 2,582,996 | 2,313,658 | 2,423,885 | |||||||||
| SHAREHOLDERS' EQUITY | ||||||||||||
| Preferred stock, no par value; 10,000,000 shares authorized; no shares issued and outstanding as of December 31, 2017, September 30, 2017, and December 31, 2016 | — | — | — | |||||||||
| Common stock, no par value; 100,000,000 shares authorized; 25,712,909, 25,716,418, and 25,093,135 shares issued and outstanding as of December 31, 2017, September 30, 2017, and December 31, 2016, respectively | 299,474 | 298,469 | 292,747 | |||||||||
| Retained earnings | 12,810 | 28,147 | 16,536 | |||||||||
| Accumulated other comprehensive (loss) income | (3,859 | ) | (1,862 | ) | (5,625 | ) | ||||||
| Total shareholders’ equity | 308,425 | 324,754 | 303,658 | |||||||||
| TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | $ | 2,891,421 | $ | 2,638,412 | $ | 2,727,543 | ||||||
| ATLANTIC CAPITAL BANCSHARES, INC. | ||||||||||||||||||||||||||||
| Consolidated Statements of Income (unaudited) | ||||||||||||||||||||||||||||
| (in thousands, except share and per share data) | Three months ended | Year ended | ||||||||||||||||||||||||||
| December 31, 2017 | September 30, 2017 | June 30, 2017 | March 31, 2017 | December 31, 2016 | December 31, 2017 | December 31, 2016 | ||||||||||||||||||||||
| INTEREST INCOME | ||||||||||||||||||||||||||||
| Loans, including fees | $ | 22,043 | $ | 21,491 | $ | 21,361 | $ | 19,994 | $ | 20,363 | $ | 84,889 | $ | 80,781 | ||||||||||||||
| Investment securities available-for-sale | 2,510 | 2,298 | 2,355 | 2,018 | 1,477 | 9,181 | 5,698 | |||||||||||||||||||||
| Interest and dividends on other interest‑earning assets | 584 | 562 | 606 | 449 | 467 | 2,201 | 1,738 | |||||||||||||||||||||
| Total interest income | 25,137 | 24,351 | 24,322 | 22,461 | 22,307 | 96,271 | 88,217 | |||||||||||||||||||||
| INTEREST EXPENSE | ||||||||||||||||||||||||||||
| Interest on deposits | 2,856 | 2,693 | 2,481 | 2,047 | 1,929 | 10,077 | 7,399 | |||||||||||||||||||||
| Interest on Federal Home Loan Bank advances | 323 | 459 | 452 | 302 | 234 | 1,536 | 558 | |||||||||||||||||||||
| Interest on federal funds purchased and securities sold under agreements to repurchase | 26 | 84 | 76 | 36 | 38 | 222 | 229 | |||||||||||||||||||||
| Interest on long-term debt | 823 | 824 | 824 | 823 | 828 | 3,294 | 3,285 | |||||||||||||||||||||
| Other | — | — | — | — | — | — | 38 | |||||||||||||||||||||
| Total interest expense | 4,028 | 4,060 | 3,833 | 3,208 | 3,029 | 15,129 | 11,509 | |||||||||||||||||||||
| NET INTEREST INCOME BEFORE PROVISION FOR LOAN LOSSES | 21,109 | 20,291 | 20,489 | 19,253 | 19,278 | 81,142 | 76,708 | |||||||||||||||||||||
| Provision for loan losses | 282 | 322 | 1,980 | 634 | 2,208 | 3,218 | 3,816 | |||||||||||||||||||||
| NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES | 20,827 | 19,969 | 18,509 | 18,619 | 17,070 | 77,924 | 72,892 | |||||||||||||||||||||
| NONINTEREST INCOME | ||||||||||||||||||||||||||||
| Service charges | 1,206 | 1,247 | 1,274 | 1,349 | 1,327 | 5,076 | 5,487 | |||||||||||||||||||||
| Gains (losses) on sale of securities | 17 | (80 | ) | — | — | — | (63 | ) | 44 | |||||||||||||||||||
| Gains (losses) on sale of other assets | (46 | ) | 44 | 666 | 78 | 238 | 742 | 388 | ||||||||||||||||||||
| Mortgage income | 290 | 320 | 388 | 257 | 499 | 1,255 | 1,917 | |||||||||||||||||||||
| Trust income | 482 | 437 | 488 | 407 | 350 | 1,814 | 1,411 | |||||||||||||||||||||
| Derivatives income | 94 | (3 | ) | 116 | (51 | ) | 346 | 156 | 578 | |||||||||||||||||||
| Bank owned life insurance | 384 | 384 | 384 | 378 | 395 | 1,530 | 1,610 | |||||||||||||||||||||
| SBA lending activities | 843 | 888 | 1,171 | 1,227 | 599 | 4,129 | 3,642 | |||||||||||||||||||||
| TriNet lending activities | 27 | 20 | 20 | 20 | 357 | 87 | 1,501 | |||||||||||||||||||||
| Gains on sale of branches | — | — | 302 | — | — | 302 | 3,885 | |||||||||||||||||||||
| Other noninterest income | 271 | 220 | 478 | 192 | 319 | 1,161 | 1,269 | |||||||||||||||||||||
| Total noninterest income | 3,568 | 3,477 | 5,287 | 3,857 | 4,430 | 16,189 | 21,732 | |||||||||||||||||||||
| NONINTEREST EXPENSE | ||||||||||||||||||||||||||||
| Salaries and employee benefits | 13,298 | 10,409 | 10,603 | 11,065 | 11,269 | 45,375 | 42,303 | |||||||||||||||||||||
| Occupancy | 1,156 | 1,129 | 1,074 | 1,230 | 995 | 4,589 | 4,604 | |||||||||||||||||||||
| Equipment and software | 872 | 776 | 996 | 805 | 694 | 3,449 | 2,966 | |||||||||||||||||||||
| Professional services | 1,280 | 1,595 | 973 | 904 | 968 | 4,752 | 2,918 | |||||||||||||||||||||
| Postage, printing and supplies | 114 | 63 | 78 | 85 | 73 | 340 | 462 | |||||||||||||||||||||
| Communications and data processing | 1,111 | 982 | 1,069 | 987 | 1,064 | 4,149 | 3,291 | |||||||||||||||||||||
| Marketing and business development | 225 | 272 | 179 | 270 | 247 | 946 | 1,100 | |||||||||||||||||||||
| FDIC premiums | 212 | 308 | 132 | 314 | 262 | 966 | 1,568 | |||||||||||||||||||||
| Merger and conversion costs | — | — | 304 | — | 204 | 304 | 2,742 | |||||||||||||||||||||
| Amortization of intangibles | 367 | 391 | 425 | 470 | 495 | 1,653 | 2,445 | |||||||||||||||||||||
| Foreclosed property/problem asset expense | 7 | 7 | 107 | 3 | 666 | 124 | 864 | |||||||||||||||||||||
| Other noninterest expense | 1,952 | 1,572 | 1,683 | 1,611 | 1,838 | 6,818 | 8,017 | |||||||||||||||||||||
| Total noninterest expense | 20,594 | 17,504 | 17,623 | 17,744 | 18,775 | 73,465 | 73,280 | |||||||||||||||||||||
| INCOME BEFORE PROVISION FOR INCOME TAXES | 3,801 | 5,942 | 6,173 | 4,732 | 2,725 | 20,648 | 21,344 | |||||||||||||||||||||
| Provision for income taxes | 19,138 | 1,890 | 1,844 | 1,502 | 1,116 | 24,374 | 7,949 | |||||||||||||||||||||
| NET (LOSS)/INCOME | $ | (15,337 | ) | $ | 4,052 | $ | 4,329 | $ | 3,230 | $ | 1,609 | $ | (3,726 | ) | $ | 13,395 | ||||||||||||
| Net (loss)/income per common share ‑ basic | $ | (0.60 | ) | $ | 0.16 | $ | 0.17 | $ | 0.13 | $ | 0.06 | $ | (0.15 | ) | $ | 0.54 | ||||||||||||
| Net (loss)/income per common share ‑ diluted | $ | (0.59 | ) | $ | 0.16 | $ | 0.17 | $ | 0.13 | $ | 0.06 | $ | (0.14 | ) | $ | 0.53 | ||||||||||||
| Weighted average shares - basic | 25,723,548 | 25,699,179 | 25,621,910 | 25,320,690 | 25,027,304 | 25,592,731 | 24,763,522 | |||||||||||||||||||||
| Weighted average shares - diluted | 25,888,064 | 25,890,779 | 25,831,281 | 25,672,286 | 25,407,728 | 25,822,085 | 25,186,680 | |||||||||||||||||||||
| ATLANTIC CAPITAL BANCSHARES, INC. | ||||||||||||||||||||||||
| Average Balance Sheets and Net Interest Margin Analysis | ||||||||||||||||||||||||
| Selected Financial Information | ||||||||||||||||||||||||
| Three months ended | ||||||||||||||||||||||||
| December 31, 2017 | September 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 | $ | 113,553 | $ | 302 | 1.06 | % | $ | 69,839 | $ | 216 | 1.23 | % | ||||||||||||
| Other short-term investments | 8,532 | 40 | 1.86 | 13,830 | 67 | 1.92 | ||||||||||||||||||
| Investment securities: | ||||||||||||||||||||||||
| Taxable investment securities | 378,859 | 2,024 | 2.12 | 373,087 | 1,812 | 1.93 | ||||||||||||||||||
| Non-taxable investment securities(1) | 81,410 | 699 | 3.41 | 82,781 | 701 | 3.36 | ||||||||||||||||||
| Total investment securities | 460,269 | 2,723 | 2.35 | 455,868 | 2,513 | 2.19 | ||||||||||||||||||
| Total loans | 1,898,745 | 22,043 | 4.61 | 1,934,505 | 21,491 | 4.41 | ||||||||||||||||||
| FHLB and FRB stock | 16,693 | 242 | 5.75 | 18,494 | 279 | 5.99 | ||||||||||||||||||
| Total interest-earning assets | 2,497,792 | 25,350 | 4.03 | 2,492,536 | 24,566 | 3.91 | ||||||||||||||||||
| Non-earning assets | 222,278 | 208,851 | ||||||||||||||||||||||
| Total assets | $ | 2,720,070 | $ | 2,701,387 | ||||||||||||||||||||
| Liabilities | ||||||||||||||||||||||||
| Interest bearing deposits: | ||||||||||||||||||||||||
| NOW, money market, and savings | 1,276,116 | 2,140 | 0.67 | 1,192,664 | 1,886 | 0.63 | ||||||||||||||||||
| Time deposits | 140,921 | 301 | 0.85 | 143,862 | 292 | 0.81 | ||||||||||||||||||
| Brokered deposits | 128,594 | 415 | 1.28 | 156,708 | 515 | 1.30 | ||||||||||||||||||
| Total interest-bearing deposits | 1,545,631 | 2,856 | 0.73 | 1,493,234 | 2,693 | 0.72 | ||||||||||||||||||
| Total borrowings | 111,879 | 349 | 1.24 | 179,808 | 543 | 1.20 | ||||||||||||||||||
| Total long-term debt | 49,507 | 823 | 6.60 | 49,465 | 824 | 6.61 | ||||||||||||||||||
| Total interest-bearing liabilities | 1,707,017 | 4,028 | 0.94 | 1,722,507 | 4,060 | 0.94 | ||||||||||||||||||
| Demand deposits | 649,218 | 628,029 | ||||||||||||||||||||||
| Other liabilities | 37,776 | 27,019 | ||||||||||||||||||||||
| Shareholders' equity | 326,059 | 323,832 | ||||||||||||||||||||||
| Total liabilities and shareholders' equity | $ | 2,720,070 | $ | 2,701,387 | ||||||||||||||||||||
| Net interest spread | 3.09 | % | 2.97 | % | ||||||||||||||||||||
| Net interest income and net interest margin(2) | $ | 21,322 | 3.39 | % | $ | 20,506 | 3.26 | % | ||||||||||||||||
| Non-taxable equivalent net interest margin | 3.35 | % | 3.23 | % | ||||||||||||||||||||
| (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. | ||||||||||||||||||||||||
| ATLANTIC CAPITAL BANCSHARES, INC. | ||||||||||||||||||||||||
| Average Balance Sheets and Net Interest Margin Analysis | ||||||||||||||||||||||||
| Selected Financial Information | ||||||||||||||||||||||||
| Year ended | ||||||||||||||||||||||||
| December 31, 2017 | December 31, 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 | $ | 85,525 | $ | 916 | 1.07 | % | $ | 92,744 | $ | 583 | 0.63 | % | ||||||||||||
| Other short-term investments | 14,266 | 270 | 1.89 | 23,134 | 318 | 1.37 | ||||||||||||||||||
| Investment securities: | ||||||||||||||||||||||||
| Taxable investment securities | 366,309 | 7,221 | 1.97 | 310,815 | 4,755 | 1.53 | ||||||||||||||||||
| Non-taxable investment securities(1) | 81,466 | 2,866 | 3.52 | 46,239 | 1,427 | 3.09 | ||||||||||||||||||
| Total investment securities | 447,775 | 10,087 | 2.25 | 357,054 | 6,182 | 1.73 | ||||||||||||||||||
| Total loans | 1,936,109 | 84,889 | 4.38 | 1,986,482 | 80,781 | 4.07 | ||||||||||||||||||
| FHLB and FRB stock | 18,528 | 1,015 | 5.48 | 15,617 | 837 | 5.36 | ||||||||||||||||||
| Total interest-earning assets | 2,502,203 | 97,177 | 3.88 | 2,475,031 | 88,701 | 3.58 | ||||||||||||||||||
| Non-earning assets | 217,455 | 234,107 | ||||||||||||||||||||||
| Total assets | $ | 2,719,658 | $ | 2,709,138 | ||||||||||||||||||||
| Liabilities | ||||||||||||||||||||||||
| Interest bearing deposits: | ||||||||||||||||||||||||
| NOW, money market, and savings | 1,197,771 | 6,983 | 0.58 | 1,170,879 | 4,889 | 0.42 | ||||||||||||||||||
| Time deposits | 149,350 | 1,134 | 0.76 | 208,800 | 936 | 0.45 | ||||||||||||||||||
| Brokered deposits | 168,685 | 1,960 | 1.16 | 207,543 | 1,574 | 0.76 | ||||||||||||||||||
| Total interest-bearing deposits | 1,515,806 | 10,077 | 0.66 | 1,587,222 | 7,399 | 0.47 | ||||||||||||||||||
| Total borrowings | 175,060 | 1,758 | 1.00 | 176,122 | 825 | 0.47 | ||||||||||||||||||
| Total long-term debt | 49,444 | 3,294 | 6.66 | 49,275 | 3,285 | 6.67 | ||||||||||||||||||
| Total interest-bearing liabilities | 1,740,310 | 15,129 | 0.87 | 1,812,619 | 11,509 | 0.63 | ||||||||||||||||||
| Demand deposits | 631,046 | 559,762 | ||||||||||||||||||||||
| Other liabilities | 29,497 | 35,314 | ||||||||||||||||||||||
| Shareholders' equity | 318,805 | 301,443 | ||||||||||||||||||||||
| Total liabilities and shareholders' equity | $ | 2,719,658 | $ | 2,709,138 | ||||||||||||||||||||
| Net interest spread | 3.01 | % | 2.95 | % | ||||||||||||||||||||
| Net interest income and net interest margin(2) | $ | 82,048 | 3.28 | % | $ | 77,192 | 3.12 | % | ||||||||||||||||
| Non-taxable equivalent net interest margin | 3.24 | % | 3.10 | % | ||||||||||||||||||||
| (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. | ||||||||||||||||||||||||
| ATLANTIC CAPITAL BANCSHARES, INC. | ||||||||||||||||||||||||||||
| Period End Loans | ||||||||||||||||||||||||||||
| (dollars in thousands) | December 31, 2017 | September 30, 2017 | June 30, 2017 | March 31, 2017 | December 31, 2016 | Linked Quarter Change | Year Over Year Change | |||||||||||||||||||||
| Loans held for sale | ||||||||||||||||||||||||||||
| Loans held for sale | $ | 1,487 | $ | 3,274 | $ | 1,744 | $ | 1,297 | $ | 4,302 | $ | (1,787 | ) | $ | (2,815 | ) | ||||||||||||
| Branch loans held for sale | — | — | — | 27,944 | 30,917 | — | (30,917 | ) | ||||||||||||||||||||
| Total loans held for sale | $ | 1,487 | $ | 3,274 | $ | 1,744 | $ | 29,241 | $ | 35,219 | $ | (1,787 | ) | $ | (33,732 | ) | ||||||||||||
| Loans held for investment | ||||||||||||||||||||||||||||
| Commercial loans: | ||||||||||||||||||||||||||||
| Commercial and industrial | $ | 615,359 | $ | 562,426 | $ | 578,888 | $ | 544,911 | $ | 531,061 | $ | 52,933 | $ | 84,298 | ||||||||||||||
| Commercial real estate: | ||||||||||||||||||||||||||||
| Multifamily | 99,553 | 91,219 | 113,571 | 108,215 | 68,223 | 8,334 | 31,330 | |||||||||||||||||||||
| Owner occupied | 346,746 | 348,447 | 351,733 | 348,888 | 352,523 | (1,701 | ) | (5,777 | ) | |||||||||||||||||||
| Investment | 494,116 | 505,188 | 517,571 | 478,485 | 438,032 | (11,072 | ) | 56,084 | ||||||||||||||||||||
| Construction and land: | ||||||||||||||||||||||||||||
| 1-4 family residential construction | 6,906 | 9,644 | 11,711 | 11,799 | 10,335 | (2,738 | ) | (3,429 | ) | |||||||||||||||||||
| Other construction, development, and land | 108,589 | 122,436 | 113,347 | 123,838 | 209,017 | (13,847 | ) | (100,428 | ) | |||||||||||||||||||
| Mortgage warehouse loans | 39,981 | 41,551 | 47,992 | 58,357 | 147,519 | (1,570 | ) | (107,538 | ) | |||||||||||||||||||
| Total commercial loans | 1,711,250 | 1,680,911 | 1,734,813 | 1,674,493 | 1,756,710 | 30,339 | (45,460 | ) | ||||||||||||||||||||
| Residential: | ||||||||||||||||||||||||||||
| Residential mortgages | 104,484 | 101,976 | 101,798 | 99,665 | 101,921 | 2,508 | 2,563 | |||||||||||||||||||||
| Home equity | 76,244 | 78,773 | 79,769 | 81,438 | 77,358 | (2,529 | ) | (1,114 | ) | |||||||||||||||||||
| Total residential loans | 180,728 | 180,749 | 181,567 | 181,103 | 179,279 | (21 | ) | 1,449 | ||||||||||||||||||||
| Consumer | 29,393 | 31,750 | 31,981 | 32,525 | 27,338 | (2,357 | ) | 2,055 | ||||||||||||||||||||
| Other | 16,278 | 16,106 | 18,013 | 17,611 | 21,565 | 172 | (5,287 | ) | ||||||||||||||||||||
| 1,937,649 | 1,909,516 | 1,966,374 | 1,905,732 | 1,984,892 | 28,133 | (47,243 | ) | |||||||||||||||||||||
| Less net deferred fees and other unearned income | (3,810 | ) | (4,084 | ) | (4,283 | ) | (4,008 | ) | (3,562 | ) | 274 | (248 | ) | |||||||||||||||
| Total loans held for investment | $ | 1,933,839 | $ | 1,905,432 | $ | 1,962,091 | $ | 1,901,724 | $ | 1,981,330 | $ | 28,407 | $ | (47,491 | ) | |||||||||||||
| Total loans | $ | 1,935,326 | $ | 1,908,706 | $ | 1,963,835 | $ | 1,930,965 | $ | 2,016,549 | $ | 26,620 | $ | (81,223 | ) | |||||||||||||
| ATLANTIC CAPITAL BANCSHARES, INC. | |||||||||||||||||||||
| Allowance for Loan Losses Activity and Credit Quality | |||||||||||||||||||||
| 2017 | 2016 | ||||||||||||||||||||
| (dollars in thousands) | Fourth Quarter | Third Quarter | Second Quarter | First Quarter | Fourth Quarter | ||||||||||||||||
| Balance at beginning of period | $ | 18,870 | $ | 21,870 | $ | 19,939 | $ | 20,595 | $ | 18,534 | |||||||||||
| Provision for loan losses | 312 | 314 | 2,048 | 565 | 2,134 | ||||||||||||||||
| Provision for PCI loan losses | (30 | ) | 8 | (68 | ) | 69 | 74 | ||||||||||||||
| Loans charged-off: | |||||||||||||||||||||
| Commercial and industrial | — | (3,292 | ) | — | (781 | ) | — | ||||||||||||||
| Commercial real estate | — | — | — | (132 | ) | 24 | |||||||||||||||
| Construction and land | — | (16 | ) | — | — | — | |||||||||||||||
| Residential mortgages | — | — | — | (46 | ) | — | |||||||||||||||
| Home equity | — | (31 | ) | (8 | ) | — | — | ||||||||||||||
| Consumer | (13 | ) | (7 | ) | (57 | ) | (332 | ) | (158 | ) | |||||||||||
| Other | — | — | — | — | — | ||||||||||||||||
| Total loans charged-off | (13 | ) | (3,346 | ) | (65 | ) | (1,291 | ) | (134 | ) | |||||||||||
| Recoveries on loans previously charged‑off: | |||||||||||||||||||||
| Commercial and industrial | 192 | 1 | 7 | — | — | ||||||||||||||||
| Commercial real estate | — | — | 2 | — | (15 | ) | |||||||||||||||
| Construction and land | 1 | 15 | — | — | — | ||||||||||||||||
| Residential mortgages | — | — | 1 | — | — | ||||||||||||||||
| Home equity | — | — | 1 | — | — | ||||||||||||||||
| Consumer | 12 | 8 | 5 | 1 | 2 | ||||||||||||||||
| Other | — | — | — | — | — | ||||||||||||||||
| Total recoveries | 205 | 24 | 16 | 1 | (13 | ) | |||||||||||||||
| Net charge-offs | $ | 192 | $ | (3,322 | ) | $ | (49 | ) | $ | (1,290 | ) | $ | (147 | ) | |||||||
| Balance at period end | $ | 19,344 | $ | 18,870 | $ | 21,870 | $ | 19,939 | $ | 20,595 | |||||||||||
| Loans held for investment | |||||||||||||||||||||
| PCI Loans | $ | 11,754 | $ | 12,090 | $ | 11,510 | $ | 11,841 | $ | 15,253 | |||||||||||
| Non-PCI Loans | 1,922,085 | 1,893,342 | 1,950,581 | 1,889,883 | 1,966,077 | ||||||||||||||||
| $ | 1,933,839 | $ | 1,905,432 | $ | 1,962,091 | $ | 1,901,724 | $ | 1,981,330 | ||||||||||||
| Non-performing loans - PCI | $ | 1,211 | $ | 1,289 | $ | 1,310 | $ | 1,684 | $ | 2,446 | |||||||||||
| Non-performing loans - Non-PCI | $ | 2,912 | $ | 4,553 | $ | 12,300 | $ | 3,983 | $ | 1,615 | |||||||||||
| Foreclosed properties (OREO) | 1,215 | 1,494 | 1,819 | 1,869 | 1,872 | ||||||||||||||||
| Total nonperforming assets | $ | 4,127 | $ | 6,047 | $ | 14,119 | $ | 5,852 | $ | 3,487 | |||||||||||
| Allowance for loan losses to loans held for investment | 1.00 | % | 0.99 | % | 1.11 | % | 1.05 | % | 1.04 | % | |||||||||||
| Net charge-offs to average loans (1) | (0.04 | ) | 0.68 | 0.01 | 0.26 | 0.03 | |||||||||||||||
| Nonperforming loans as a percentage of total loans (2) | 0.15 | 0.24 | 0.63 | 0.21 | 0.08 | ||||||||||||||||
| Nonperforming assets as a percentage of total assets (2) | 0.14 | 0.23 | 0.52 | 0.21 | 0.13 | ||||||||||||||||
| (1)Annualized. (2)Excludes non-performing PCI loans. | |||||||||||||||||||||
| ATLANTIC CAPITAL BANCSHARES, INC. | ||||||||||||||||||||||||||||
| Period End Deposits | ||||||||||||||||||||||||||||
| (dollars in thousands) | December 31, 2017 | September 30, 2017 | June 30, 2017 | March 31, 2017 | December 31, 2016 | Linked Quarter Change | Year Over Year Change | |||||||||||||||||||||
| DDA | $ | 732,442 | $ | 599,292 | $ | 612,744 | $ | 606,386 | $ | 643,471 | $ | 133,150 | $ | 88,971 | ||||||||||||||
| NOW | 306,331 | 270,740 | 250,254 | 259,760 | 264,062 | 35,591 | 42,269 | |||||||||||||||||||||
| Savings | 26,573 | 30,131 | 30,170 | 30,756 | 27,932 | (3,558 | ) | (1,359 | ) | |||||||||||||||||||
| Money Market | 1,117,891 | 865,238 | 882,824 | 916,390 | 912,493 | 252,653 | 205,398 | |||||||||||||||||||||
| Time | 138,612 | 144,250 | 142,915 | 150,867 | 157,810 | (5,638 | ) | (19,198 | ) | |||||||||||||||||||
| Brokered | 128,816 | 193,994 | 195,047 | 209,385 | 200,223 | (65,178 | ) | (71,407 | ) | |||||||||||||||||||
| Deposits to be assumed in branch sale | — | — | — | 29,495 | 31,589 | — | (31,589 | ) | ||||||||||||||||||||
| Total Deposits | $ | 2,450,665 | $ | 2,103,645 | $ | 2,113,954 | $ | 2,203,039 | $ | 2,237,580 | $ | 347,020 | $ | 213,085 | ||||||||||||||
| Payments Clients | $ | 405,873 | $ | 239,079 | $ | 250,104 | $ | 321,899 | $ | 347,833 | $ | 166,794 | $ | 58,040 | ||||||||||||||
| Average Deposits(1) | ||||||||||||||||||||||||||||
| 2017 | 2016 | Linked Quarter Change | Year Over Year Change | |||||||||||||||||||||||||
| (dollars in thousands) | Fourth Quarter | Third Quarter | Second Quarter | First Quarter | Fourth Quarter | |||||||||||||||||||||||
| DDA | $ | 649,218 | $ | 628,029 | $ | 626,330 | $ | 620,325 | $ | 591,166 | $ | 21,189 | $ | 58,052 | ||||||||||||||
| NOW | 338,741 | 291,810 | 293,160 | 290,862 | 253,187 | 46,931 | 85,554 | |||||||||||||||||||||
| Savings | 29,851 | 30,236 | 30,468 | 30,306 | 29,741 | (385 | ) | 110 | ||||||||||||||||||||
| Money Market | 907,524 | 870,618 | 860,116 | 815,920 | 853,281 | 36,906 | 54,243 | |||||||||||||||||||||
| Time | 140,921 | 143,862 | 149,898 | 163,021 | 169,677 | (2,941 | ) | (28,756 | ) | |||||||||||||||||||
| Brokered | 128,594 | 156,708 | 198,703 | 191,558 | 197,833 | (28,114 | ) | (69,239 | ) | |||||||||||||||||||
| Total Deposits | $ | 2,194,849 | $ | 2,121,263 | $ | 2,158,675 | $ | 2,111,992 | $ | 2,094,885 | $ | 73,586 | $ | 99,964 | ||||||||||||||
| Payments Clients | $ | 234,558 | $ | 209,851 | $ | 244,157 | $ | 273,630 | $ | 211,000 | $ | 24,707 | $ | 23,558 | ||||||||||||||
| Noninterest bearing deposits as a percentage of average deposits | 29.6 | % | 29.6 | % | 29.0 | % | 29.4 | % | 28.2 | % | ||||||||||||||||||
| Cost of deposits | 0.52 | % | 0.50 | % | 0.46 | % | 0.39 | % | 0.37 | % | ||||||||||||||||||
| (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 year ended December 31, | ||||||||||||||||||||||||||
| Fourth Quarter | Third Quarter | Second Quarter | First Quarter | Fourth Quarter | 2017 | 2016 | |||||||||||||||||||||||
| Taxable equivalent interest income reconciliation | |||||||||||||||||||||||||||||
| Interest income - GAAP | $ | 25,137 | $ | 24,351 | $ | 24,322 | $ | 22,461 | $ | 22,307 | $ | 96,271 | $ | 88,217 | |||||||||||||||
| Taxable equivalent adjustment | 213 | 215 | 223 | 255 | 223 | 906 | 484 | ||||||||||||||||||||||
| Interest income - taxable equivalent | $ | 25,350 | $ | 24,566 | $ | 24,545 | $ | 22,716 | $ | 22,530 | $ | 97,177 | $ | 88,701 | |||||||||||||||
| Taxable equivalent net interest income reconciliation | |||||||||||||||||||||||||||||
| Net interest income - GAAP | $ | 21,109 | $ | 20,291 | $ | 20,489 | $ | 19,253 | $ | 19,278 | $ | 81,142 | $ | 76,708 | |||||||||||||||
| Taxable equivalent adjustment | 213 | 215 | 223 | 255 | 223 | 906 | 484 | ||||||||||||||||||||||
| Net interest income - taxable equivalent | $ | 21,322 | $ | 20,506 | $ | 20,712 | $ | 19,508 | $ | 19,501 | $ | 82,048 | $ | 77,192 | |||||||||||||||
| Taxable equivalent net interest margin reconciliation | |||||||||||||||||||||||||||||
| Net interest margin - GAAP | 3.35 | % | 3.23 | % | 3.23 | % | 3.16 | % | 3.07 | % | 3.24 | % | 3.10 | % | |||||||||||||||
| Impact of taxable equivalent adjustment | 0.04 | 0.03 | 0.03 | 0.04 | 0.04 | 0.04 | 0.02 | ||||||||||||||||||||||
| Net interest margin - taxable equivalent | 3.39 | % | 3.26 | % | 3.26 | % | 3.20 | % | 3.11 | % | 3.28 | % | 3.12 | % | |||||||||||||||
| Operating noninterest income reconciliation | |||||||||||||||||||||||||||||
| Noninterest income - GAAP | $ | 3,568 | $ | 3,477 | $ | 5,287 | $ | 3,857 | $ | 4,430 | $ | 16,189 | $ | 21,732 | |||||||||||||||
| Gain on sale of branches | — | — | — | — | — | — | (3,885 | ) | |||||||||||||||||||||
| Operating noninterest income | $ | 3,568 | $ | 3,477 | $ | 5,287 | $ | 3,857 | $ | 4,430 | $ | 16,189 | $ | 17,847 | |||||||||||||||
| Operating noninterest expense reconciliation | |||||||||||||||||||||||||||||
| Noninterest expense - GAAP | $ | 20,594 | $ | 17,504 | $ | 17,623 | $ | 17,744 | $ | 18,775 | $ | 73,465 | $ | 73,280 | |||||||||||||||
| Merger-related expenses | — | — | — | — | (204 | ) | — | (2,742 | ) | ||||||||||||||||||||
| Divestiture expenses | — | — | — | — | — | — | (305 | ) | |||||||||||||||||||||
| Operating noninterest expense | $ | 20,594 | $ | 17,504 | $ | 17,623 | $ | 17,744 | $ | 18,571 | $ | 73,465 | $ | 70,233 | |||||||||||||||
| Operating income before income taxes reconciliation | |||||||||||||||||||||||||||||
| Income before income taxes - GAAP | $ | 3,801 | $ | 5,942 | $ | 6,173 | $ | 4,732 | $ | 2,725 | $ | 20,648 | $ | 21,344 | |||||||||||||||
| Taxable equivalent adjustment | 213 | 215 | 223 | 255 | 223 | 906 | 484 | ||||||||||||||||||||||
| Merger-related expenses | — | — | — | — | 204 | — | 2,742 | ||||||||||||||||||||||
| Divestiture expenses | — | — | — | — | — | — | 305 | ||||||||||||||||||||||
| Gain on sale of branches | — | — | — | — | — | — | (3,885 | ) | |||||||||||||||||||||
| Operating income before income taxes | $ | 4,014 | $ | 6,157 | $ | 6,396 | $ | 4,987 | $ | 3,152 | $ | 21,554 | $ | 20,990 | |||||||||||||||
| Operating income tax reconciliation | |||||||||||||||||||||||||||||
| Income tax expense - GAAP | $ | 19,138 | $ | 1,890 | $ | 1,844 | $ | 1,502 | $ | 1,116 | $ | 24,374 | $ | 7,949 | |||||||||||||||
| Taxable equivalent adjustment | 213 | 215 | 223 | 255 | 223 | 906 | 484 | ||||||||||||||||||||||
| Merger related expenses, tax benefit | — | — | — | — | 78 | — | 1,057 | ||||||||||||||||||||||
| Divestiture expenses, tax benefit | — | — | — | — | — | — | 118 | ||||||||||||||||||||||
| Gain on sale of branches, tax expense | — | — | — | — | — | — | (1,500 | ) | |||||||||||||||||||||
| Revaluation of net deferred tax asset | (17,398 | ) | — | — | — | — | (17,398 | ) | — | ||||||||||||||||||||
| Operating income tax expense | $ | 1,953 | $ | 2,105 | $ | 2,067 | $ | 1,757 | $ | 1,417 | $ | 7,882 | $ | 8,108 | |||||||||||||||
| Operating net income reconciliation | |||||||||||||||||||||||||||||
| Net income (loss) - GAAP | $ | (15,337 | ) | $ | 4,052 | $ | 4,329 | $ | 3,230 | $ | 1,609 | $ | (3,726 | ) | $ | 13,395 | |||||||||||||
| Merger related expenses, net of income tax | — | — | — | — | 126 | — | 1,685 | ||||||||||||||||||||||
| Divestiture expenses, net of income tax | — | — | — | — | — | — | 187 | ||||||||||||||||||||||
| Gain on sale of branches, net of income tax | — | — | — | — | — | — | (2,385 | ) | |||||||||||||||||||||
| Revaluation of net deferred tax asset | 17,398 | — | — | — | — | 17,398 | — | ||||||||||||||||||||||
| Operating net income | $ | 2,061 | $ | 4,052 | $ | 4,329 | $ | 3,230 | $ | 1,735 | $ | 13,672 | $ | 12,882 | |||||||||||||||
| Operating diluted earnings per share reconciliation | |||||||||||||||||||||||||||||
| Diluted earnings (loss) per share - GAAP | $ | (0.59 | ) | $ | 0.16 | $ | 0.17 | $ | 0.13 | $ | 0.06 | $ | (0.14 | ) | $ | 0.53 | |||||||||||||
| Merger related expenses | — | — | — | — | 0.01 | — | 0.06 | ||||||||||||||||||||||
| Net gain on sale of branches | — | — | — | — | — | — | (0.08 | ) | |||||||||||||||||||||
| Revaluation of net deferred tax asset | 0.67 | — | — | — | — | 0.67 | — | ||||||||||||||||||||||
| Diluted earnings per share - operating | $ | 0.08 | $ | 0.16 | $ | 0.17 | $ | 0.13 | $ | 0.07 | $ | 0.53 | $ | (0.51 | ) | ||||||||||||||
| Tangible book value per common share reconciliation | |||||||||||||||||||||||||||||
| Total shareholders’ equity | $ | 308,425 | $ | 324,754 | $ | 319,435 | $ | 310,967 | $ | 303,658 | $ | 308,425 | $ | 303,658 | |||||||||||||||
| Intangible assets | (24,393 | ) | (24,760 | ) | (25,151 | ) | (25,913 | ) | (26,383 | ) | (24,393 | ) | (26,383 | ) | |||||||||||||||
| Total tangible common equity | $ | 284,032 | $ | 299,994 | $ | 294,284 | $ | 285,054 | $ | 277,275 | $ | 284,032 | $ | 277,275 | |||||||||||||||
| Common shares outstanding | 25,712,909 | 25,716,418 | 25,654,521 | 25,535,013 | 25,093,135 | 25,712,909 | 25,093,135 | ||||||||||||||||||||||
| Book value per common share - GAAP | $ | 11.99 | $ | 12.63 | $ | 12.45 | $ | 12.18 | $ | 12.10 | $ | 11.99 | $ | 12.10 | |||||||||||||||
| Tangible book value | 11.05 | 11.67 | 11.47 | 11.16 | 11.05 | 11.05 | 11.05 | ||||||||||||||||||||||
| Return on average equity reconciliation | |||||||||||||||||||||||||||||
| Net income (loss) - GAAP | $ | (15,337 | ) | $ | 4,052 | $ | 4,329 | $ | 3,230 | $ | 1,609 | $ | (3,726 | ) | $ | 13,395 | |||||||||||||
| Merger related expenses, net of income tax | — | — | — | — | 126 | — | 1,685 | ||||||||||||||||||||||
| Divestiture expenses, net of income tax | — | — | — | — | — | — | 187 | ||||||||||||||||||||||
| Gain on sale of branches, net of income tax | — | — | — | — | — | — | (2,385 | ) | |||||||||||||||||||||
| Revaluation of net deferred tax asset | 17,398 | — | — | — | — | 17,398 | — | ||||||||||||||||||||||
| Operating net income | $ | 2,061 | $ | 4,052 | $ | 4,329 | $ | 3,230 | $ | 1,735 | $ | 13,672 | $ | 12,882 | |||||||||||||||
| Average shareholders' equity | $ | 326,059 | $ | 323,832 | $ | 316,825 | $ | 308,261 | $ | 308,588 | $ | 318,805 | $ | 301,443 | |||||||||||||||
| Return on average equity - GAAP | (18.66 | ) | % | 4.96 | % | 5.48 | % | 4.19 | % | 2.09 | % | (1.17 | ) | % | 4.44 | % | |||||||||||||
| Return on average equity - operating | 2.51 | 4.96 | 5.48 | 4.19 | 2.25 | 4.29 | 4.27 | ||||||||||||||||||||||
| Return on average assets reconciliation | |||||||||||||||||||||||||||||
| Net income (loss) - GAAP | $ | (15,337 | ) | $ | 4,052 | $ | 4,329 | $ | 3,230 | $ | 1,609 | $ | (3,726 | ) | $ | 13,395 | |||||||||||||
| Merger related expenses, net of income tax | — | — | — | — | 126 | — | 1,685 | ||||||||||||||||||||||
| Divestiture expenses, net of income tax | — | — | — | — | — | — | 187 | ||||||||||||||||||||||
| Gain on sale of branches, net of income tax | — | — | — | — | — | — | (2,385 | ) | |||||||||||||||||||||
| Revaluation of net deferred tax asset | 17,398 | — | — | — | — | 17,398 | — | ||||||||||||||||||||||
| Operating net income | $ | 2,061 | $ | 4,052 | $ | 4,329 | $ | 3,230 | $ | 1,735 | $ | 13,672 | $ | 12,882 | |||||||||||||||
| Average assets | $ | 2,720,070 | $ | 2,701,387 | $ | 2,762,389 | $ | 2,694,715 | $ | 2,722,444 | $ | 2,719,658 | $ | 2,709,138 | |||||||||||||||
| Return on average assets - GAAP | (2.24 | ) | % | 0.60 | % | 0.63 | % | 0.48 | % | 0.24 | % | (0.14 | ) | % | 0.49 | % | |||||||||||||
| Return on average assets - operating | 0.30 | 0.60 | 0.63 | 0.48 | 0.25 | 0.50 | 0.48 | ||||||||||||||||||||||
| Efficiency ratio reconciliation | |||||||||||||||||||||||||||||
| Noninterest income - GAAP | $ | 3,568 | $ | 3,477 | $ | 5,287 | $ | 3,857 | $ | 4,430 | $ | 16,189 | $ | 21,732 | |||||||||||||||
| Gain on sale of branches | — | — | — | — | — | — | (3,885 | ) | |||||||||||||||||||||
| Operating noninterest income | $ | 3,568 | $ | 3,477 | $ | 5,287 | $ | 3,857 | $ | 4,430 | $ | 16,189 | $ | 17,847 | |||||||||||||||
| Noninterest expense - GAAP | $ | 20,594 | $ | 17,504 | $ | 17,623 | $ | 17,744 | $ | 18,775 | $ | 73,465 | $ | 73,280 | |||||||||||||||
| Merger-related expenses | — | — | — | — | (204 | ) | — | (2,742 | ) | ||||||||||||||||||||
| Divestiture expenses | — | — | — | — | — | — | (305 | ) | |||||||||||||||||||||
| Operating noninterest expense | $ | 20,594 | $ | 17,504 | $ | 17,623 | $ | 17,744 | $ | 18,571 | $ | 73,465 | $ | 70,233 | |||||||||||||||
| Net interest income | $ | 21,109 | $ | 20,291 | $ | 20,489 | $ | 19,253 | $ | 19,278 | $ | 81,142 | $ | 76,708 | |||||||||||||||
| Efficiency ratio | 83.45 | % | 73.65 | % | 68.37 | % | 76.78 | % | 78.33 | % | 75.48 | % | 74.28 | % | |||||||||||||||
| Tangible common equity to tangible assets reconciliation | |||||||||||||||||||||||||||||
| Total shareholders’ equity | $ | 308,425 | $ | 324,754 | $ | 319,435 | $ | 310,967 | $ | 303,658 | $ | 308,425 | $ | 303,658 | |||||||||||||||
| Intangible assets | (24,393 | ) | (24,760 | ) | (25,151 | ) | (25,913 | ) | (26,383 | ) | (24,393 | ) | (26,383 | ) | |||||||||||||||
| Total tangible common equity | $ | 284,032 | $ | 299,994 | $ | 294,284 | $ | 285,054 | $ | 277,275 | $ | 284,032 | $ | 277,275 | |||||||||||||||
| Total assets | $ | 2,891,421 | $ | 2,638,412 | $ | 2,702,575 | $ | 2,802,078 | $ | 2,727,543 | $ | 2,891,421 | $ | 2,727,543 | |||||||||||||||
| Intangible assets | (24,393 | ) | (24,760 | ) | (25,151 | ) | (25,913 | ) | (26,383 | ) | (24,393 | ) | (26,383 | ) | |||||||||||||||
| Total tangible assets | $ | 2,867,028 | $ | 2,613,652 | $ | 2,677,424 | $ | 2,776,165 | $ | 2,701,160 | $ | 2,867,028 | $ | 2,701,160 | |||||||||||||||
| Tangible common equity to tangible assets | 9.91 | % | 11.48 | % | 10.99 | % | 10.27 | % | 10.27 | % | 9.91 | % | 10.27 | % | |||||||||||||||
| Contact: | Douglas L. Williams | Patrick T. Oakes |
| President and Chief Executive Officer | Executive Vice President and CFO | |
| 404-995-6051 | 404-995-6079 | |
| doug.williams@atlcapbank.com | patrick.oakes@atlcapbank.com |