ATLANTA, July 25, 2019 (GLOBE NEWSWIRE) -- Atlantic Capital Bancshares, Inc. ACBI announced net income from continuing operations for the quarter ended June 30, 2019 of $7.0 million, or $0.29 per diluted share, compared to $8.4 million, or $0.32 per diluted share, for the second quarter of 2018 and $6.4 million, or $0.26 per diluted share, for the first quarter of 2019.
On April 5, 2019, Atlantic Capital completed the sale of 14 branches in Tennessee and northwest Georgia, including its mortgage business to FirstBank (the "branch sale"). This branch sale included the sale of approximately $598 million in deposits and repurchase agreements and approximately $385 million in loans. The income and expenses related to these branches are included in discontinued operations and prior period financial information has been retrospectively adjusted for the impact of discontinued operations. Net income from discontinued operations in the second quarter of 2019 included a gain on sale of branches of $34.5 million and divestiture expenses of $3.6 million.
"With strong loan, deposit, and non-interest income growth in the second quarter, Atlantic Capital continued to build on its success in Atlanta and its specialty commercial lines of business. We have invested aggressively in new bankers, support professionals, and offices to address new opportunities in our vibrant and growing markets," remarked Douglas Williams, President and Chief Executive Officer.
Second Quarter Highlights(1)
- Tangible book value per share increased to $13.60, compared to $11.23 at June 30, 2018 and $12.17 at March 31, 2019.
- Taxable equivalent net interest margin from continuing operations was 3.61%, compared to 3.51% in the second quarter of 2018 and 3.74% in the first quarter of 2019.
- Noninterest expense from continuing operations totaled $13.3 million, compared to $12.6 million in the second quarter of 2018 and $13.8 million in the first quarter of 2019.
- Commercial and industrial loans held for investment increased $155.1 million, or 28.3% from June 30, 2018 and $22.1 million, or 13.0% annualized, from March 31, 2019.
- Average deposits from continuing operations increased $369.1 million, or 24.1%, compared to the second quarter of 2018 and $108.3 million, or 24.1% annualized, compared to the first quarter of 2019.
- The company repurchased 1.1 million shares in the second quarter totaling $19.5 million, and has repurchased 2.9 million shares totaling $50.8 million since the announcement of the $85.0 million buyback program in November of 2018.
Income Statement
Taxable equivalent net interest income from continuing operations totaled $20.0 million for the second quarter of 2019, an increase of $1.4 million, or 8%, from the second quarter of 2018, and a decrease of $547,000 from the first quarter of 2019. The decrease in net interest income from the first quarter of 2019 was primarily the result of a decrease in the average balance of investment securities and an increase in borrowings to help fund the $167 million in cash paid to FirstBank at the closing of the branch sale, along with an increase in the cost of interest bearing deposits.
Net interest margin from continuing operations was 3.61% in the second quarter of 2019, an increase of 10 basis points from the second quarter of 2018 and a decrease of 13 basis points from the first quarter of 2019. The decrease in the second quarter was primarily the result of a decrease in loan yields, higher cost of interest bearing deposits and an increase in borrowings to help fund the cash paid for the branch sale.
The yield on loans from continuing operations in the second quarter of 2019 was 5.34%, an increase of 32 basis points from the second quarter of 2018 and a decrease of 6 basis points from the first quarter of 2019. The linked quarter decrease was primarily a result of decreases in 1 month LIBOR during the quarter.
(1) Commentary is on a fully taxable-equivalent basis unless otherwise noted. Consistent with SEC guidance in Industry Guide 3 that contemplates the calculation of tax-exempt income on a tax equivalent basis, net interest income and net interest margin are provided on a fully taxable-equivalent basis, which generally assumes a 21% marginal tax rate. We provide detailed reconciliations in the Non-GAAP Performance and Financial Measures Reconciliation table on page 16.
The cost of deposits from continuing operations in the second quarter of 2019 was 1.15%, an increase of 44 basis points from the second quarter of 2018 and an increase of 6 basis points from the first quarter of 2019. The cost of interest bearing deposits from continuing operations increased 62 basis points to 1.66% from the second quarter of 2018, and increased 5 basis points from the first quarter of 2019.
The provision for loan losses for continuing operations was $698,000 in the second quarter of 2019 compared to ($173,000) in the second quarter of 2018 and $814,000 in the first quarter of 2019. Annualized net charge-offs were 0.14% of average loans in the second quarter of 2019 and 0.12% for the first six months of 2019.
Noninterest income from continuing operations totaled $2.9 million in the second quarter of 2019 compared to $4.5 million in the second quarter of 2018 and $2.3 million in the first quarter of 2019. The second quarter of 2018 included a $1.7 million gain on the sale of the Southeastern Trust Company and $518,000 in trust income earned prior to the sale. The second quarter of 2019 included a gain of $654,000 on the sale of investment securities to help fund the cash owed to the buyer at the closing of the branch sale and a loss of $233,000 in derivative income due to the credit valuation adjustment on the customer swap portfolio.
Noninterest expense from continuing operations totaled $13.3 million in the second quarter of 2019, an increase of $631,000 compared to the second quarter of 2018, and a decrease of $541,000 compared to the first quarter of 2019. Salaries and employee benefits expense totaled $8.5 million in the second quarter of 2019, and accounted for most of the linked quarter decrease in expenses primarily as a result of lower benefits cost.
Balance Sheet
Total loans held for investment were $1.79 billion at June 30, 2019, an increase of $238.2 million, or 15.3%, from June 30, 2018 and an increase of $55.2 million, or 12.7% annualized, from March 31, 2019. Commercial and industrial loans increased $155.1 million, or 28.4%, from June 30, 2018 and increased $22.1 million, or 13.0% annualized, from March 31, 2019. Mortgage warehouse loans decreased $27.7 million from June 30, 2018 and $11.6 million from March 31, 2019.
At June 30, 2019, the allowance for loan losses was $18.2 million, or 1.02% of loans held for investment compared to 1.01%, at June 30, 2018 and 1.04%, at March 31, 2019. Non-performing assets from continuing operations totaled $6.4 million, or 0.31% of total assets, as of June 30, 2019, compared to 0.11% of total assets as of June 30, 2018 and 0.34% of total assets as of March 31, 2019.
Total average deposits from continuing operations were $1.90 billion for the second quarter of 2019, an increase of $369.0 million, or 24.1%, from the second quarter of 2018 and an increase of $108.3 million, or 24.1% annualized, from the first quarter of 2019. Noninterest bearing deposits were 30.9% of total average deposits from continuing operations in the second quarter of 2019, compared to 31.9% in the second quarter of 2018 and 32.1% in the first quarter of 2019.
Earnings Conference Call
The Company will host a conference call at 10:00 a.m. EDT on Friday, July 26, 2019, to discuss the financial results for the quarter ended June 30, 2019. Individuals wishing to participate in the conference call may do so by dialing 866-777-2509 from the United States. The call will also be available live via webcast on the Investor Relations page of the Company's website, www.atlanticcapitalbank.com.
Non-GAAP Financial Measures
Statements included in this press release include non-GAAP financial measures and should be read along with the accompanying tables, which provide a reconciliation of non-GAAP financial measures to GAAP financial measures. Atlantic Capital management uses non-GAAP financial measures, including: (i) taxable equivalent interest income; (ii) taxable equivalent net interest income; (iii) taxable equivalent net interest margin; (iv) taxable equivalent income before income taxes; (v) taxable equivalent income tax expense; (vi) tangible assets; (vii) tangible common equity; and (viii) tangible book value per common share, in its analysis of the Company's performance. Tangible common equity excludes goodwill and other intangible assets from shareholders' equity.
Management believes that non-GAAP financial measures provide a greater understanding of ongoing performance and operations, and enhance comparability with prior periods. Non-GAAP financial measures should not be considered as an alternative to any measure of performance or financial condition as determined in accordance with GAAP, and investors should consider Atlantic Capital's performance and financial condition as reported under GAAP and all other relevant information when assessing the performance or financial condition of the Company. Non-GAAP financial measures have limitations as analytical tools, and investors should not consider them in isolation or as a substitute for analysis of the results or financial condition as reported under GAAP. Non-GAAP financial measures may not be comparable to non-GAAP financial measures presented by other companies.
Forward-Looking Statements
This press release contains "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements represent plans, estimates, objectives, goals, guidelines, expectations, intentions, projections and statements of our beliefs concerning future events, business plans, objectives, expected operating results and the assumptions upon which those statements are based. Forward-looking statements include without limitation, any statement that may predict, forecast, indicate or imply future results, performance or achievements, and are typically identified with words such as "may," "could," "should," "will," "would," "believe," "anticipate," "estimate," "project," "expect," "intend," "plan," or words or phases of similar meaning. Forward-looking statements may include, among other things, statements about Atlantic Capital's confidence in its strategies and its expectations about financial performance, market growth, market and regulatory trends and developments, acquisitions and divestitures, new technologies, services and opportunities and earnings. The forward-looking statements are based largely on Atlantic Capital's expectations and are subject to a number of known and unknown risks and uncertainties that are subject to change based on factors which are, in many instances, beyond Atlantic Capital's control. Atlantic Capital undertakes no obligation to publicly update any forward-looking statement to reflect developments occurring after the statement is made, except as otherwise required by law. Actual results, performance or achievements could differ materially from those contemplated, expressed, or implied by the forward-looking statements as a result of, among other factors, the risks and uncertainties described in "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations" in Atlantic Capital's Annual Report on Form 10-K and Quarterly Reports on Form 10-Q. Please refer to the SEC's website at www.sec.gov where you can review those documents.
About Atlantic Capital Bancshares
Atlantic Capital Bancshares, Inc. is a $2.4 billion publicly traded bank holding company headquartered in Atlanta, Georgia. Atlantic Capital offers commercial and not-for-profit banking services, specialty corporate financial services, private banking services and commercial real estate finance solutions to privately held companies and individuals in the Atlanta area, as well as specialized financial services for select clients nationally.
Media Contact:
Ashley Carson
Email: ashley.carson@atlcapbank.com
Phone: 404-995-6050
Financial Contact:
Patrick Oakes
Email: patrick.oakes@atlcapbank.com
Phone: 404-995-6050
| ATLANTIC CAPITAL BANCSHARES, INC. | |||||||||||||||||||||||||||||
| Selected Financial Information | |||||||||||||||||||||||||||||
| 2019 | 2018 | For the six months ended June 30, | |||||||||||||||||||||||||||
| (in thousands, except share and per share data; taxable equivalent) | Second Quarter | First Quarter | Fourth Quarter | Third Quarter | Second Quarter | 2019 | 2018 | ||||||||||||||||||||||
| INCOME SUMMARY (1) | |||||||||||||||||||||||||||||
| Interest income (2) | $ | 26,686 | $ | 26,297 | $ | 26,725 | $ | 24,114 | $ | 22,934 | $ | 52,983 | $ | 44,316 | |||||||||||||||
| Interest expense | 6,709 | 5,773 | 5,560 | 4,720 | 4,392 | 12,482 | 8,233 | ||||||||||||||||||||||
| Net interest income | 19,977 | 20,524 | 21,165 | 19,394 | 18,542 | 40,501 | 36,083 | ||||||||||||||||||||||
| Provision for loan losses | 698 | 814 | 502 | 845 | (173 | ) | 1,512 | 599 | |||||||||||||||||||||
| Net interest income after provision for loan losses | 19,279 | 19,710 | 20,663 | 18,549 | 18,715 | 38,989 | 35,484 | ||||||||||||||||||||||
| Noninterest income | 2,941 | 2,336 | 164 | 2,255 | 4,466 | 5,277 | 7,628 | ||||||||||||||||||||||
| Noninterest expense | 13,254 | 13,795 | 12,208 | 11,872 | 12,623 | 27,049 | 25,911 | ||||||||||||||||||||||
| Income from continuing operations before income taxes | 8,966 | 8,251 | 8,619 | 8,932 | 10,558 | 17,217 | 17,201 | ||||||||||||||||||||||
| Income tax expense | 1,957 | 1,811 | 1,136 | 1,934 | 2,180 | 3,768 | 3,632 | ||||||||||||||||||||||
| Net income from continuing operations | 7,009 | 6,440 | 7,483 | 6,998 | 8,378 | 13,449 | 13,569 | ||||||||||||||||||||||
| Income (loss) from discontinued operations, net of tax | 22,143 | (1,063 | ) | 1,347 | (485 | ) | (227 | ) | 21,080 | (380 | ) | ||||||||||||||||||
| Net income | $ | 29,152 | $ | 5,377 | $ | 8,830 | $ | 6,513 | $ | 8,151 | $ | 34,529 | $ | 13,189 | |||||||||||||||
| PER SHARE DATA | |||||||||||||||||||||||||||||
| Diluted earnings per share - continuing operations | $ | 0.29 | $ | 0.26 | $ | 0.29 | $ | 0.27 | $ | 0.32 | $ | 0.55 | $ | 0.52 | |||||||||||||||
| Diluted earnings (loss) per share - discontinued operations | 0.92 | (0.04 | ) | 0.05 | (0.02 | ) | (0.01 | ) | 0.86 | (0.01 | ) | ||||||||||||||||||
| Diluted earnings per share | 1.21 | 0.21 | 0.34 | 0.25 | 0.31 | 1.41 | 0.51 | ||||||||||||||||||||||
| Book value per share | 14.46 | 13.10 | 12.80 | 12.27 | 12.14 | 14.46 | 12.14 | ||||||||||||||||||||||
| Tangible book value per common share (3) | 13.60 | 12.17 | 11.88 | 11.37 | 11.23 | 13.60 | 11.23 | ||||||||||||||||||||||
| PERFORMANCE MEASURES | |||||||||||||||||||||||||||||
| Return on average equity | 34.38 | % | 6.80 | % | 10.90 | % | 8.07 | % | 10.46 | % | 21.07 | % | 8.59 | % | |||||||||||||||
| Return on average assets | 4.79 | 0.77 | 1.21 | 0.92 | 1.20 | 2.64 | 0.98 | ||||||||||||||||||||||
| Taxable equivalent net interest margin - continuing operations | 3.61 | 3.74 | 3.66 | 3.48 | 3.51 | 3.73 | 3.45 | ||||||||||||||||||||||
| Efficiency ratio - continuing operations | 58.06 | 60.61 | 57.50 | 55.09 | 55.10 | 59.33 | 59.55 | ||||||||||||||||||||||
| CAPITAL | |||||||||||||||||||||||||||||
| Average equity to average assets | 13.94 | % | 11.34 | % | 11.11 | % | 11.41 | % | 11.50 | % | 12.55 | % | 11.42 | % | |||||||||||||||
| Tangible common equity to tangible assets | 13.37 | 10.51 | 10.25 | 10.38 | 10.99 | 13.37 | 10.99 | ||||||||||||||||||||||
| Tier 1 capital ratio | 13.4 | (4) | 11.0 | 11.5 | 11.8 | 12.0 | 13.4 | (4) | 12.0 | ||||||||||||||||||||
| Total risk based capital ratio | 16.5 | (4) | 13.7 | 14.2 | 14.7 | 15.0 | 16.5 | (4) | 15.0 | ||||||||||||||||||||
| Number of common shares outstanding - basic | 23,293,465 | 24,466,964 | 25,290,419 | 26,103,666 | 26,102,217 | 23,293,465 | 26,102,217 | ||||||||||||||||||||||
| Number of common shares outstanding - diluted | 23,508,442 | 24,719,273 | 25,480,233 | 26,281,849 | 26,336,871 | 23,508,442 | 26,336,871 | ||||||||||||||||||||||
| ASSET QUALITY | |||||||||||||||||||||||||||||
| Allowance for loan losses to loans held for investment (5) | 1.02 | % | 1.04 | % | 1.03 | % | 1.00 | % | 1.01 | % | 1.02 | % | 1.01 | % | |||||||||||||||
| Net charge-offs to average loans (6) | 0.14 | 0.11 | — | — | 0.03 | 0.12 | 0.04 | ||||||||||||||||||||||
| Non-performing assets to total assets | 0.31 | 0.40 | 0.20 | 0.13 | 0.14 | 0.31 | 0.14 | ||||||||||||||||||||||
| (1)On April 5, 2019, Atlantic Capital completed the sale to FirstBank of its Tennessee and northwest Georgia banking operations, including 14 branches and the mortgage business. The mortgage business and branches sold to FirstBank are reported as discontinued operations. Discontinued operations have been reported retrospectively for periods presented prior to December 31, 2018. (2)Interest income on tax-exempt securities has been increased to reflect comparable interest on taxable securities. The rate used was 21%, reflecting the statutory federal income tax rate. (3)Excludes effect of acquisition related intangibles. (4)Amounts are estimates as of 6/30/19. (5)The ratios for the first and second quarters of 2019 and fourth quarter of 2018 are calculated on a continuing operations basis. Prior period ratios have not been retrospectively adjusted for the impact of discontinued operations. (6)Annualized. | |||||||||||||||||||||||||||||
| ATLANTIC CAPITAL BANCSHARES, INC. | ||||||||||||
| Financial Information from Discontinued Operations | ||||||||||||
| Assets and Liabilities from Discontinued Operations | ||||||||||||
| (in thousands) | June 30, 2019 | March 31, 2019 | December 31, 2018 | |||||||||
| Cash | $ | — | $ | 4,168 | $ | 4,234 | ||||||
| Loans held for sale - discontinued operations | — | 384,779 | 373,030 | |||||||||
| Premises held for sale - discontinued operations | — | 7,736 | 7,722 | |||||||||
| Goodwill - discontinued operations | — | 4,555 | 4,555 | |||||||||
| Other assets | — | 1,158 | 1,405 | |||||||||
| Total assets | $ | — | $ | 402,396 | $ | 390,946 | ||||||
| Deposits to be assumed - discontinued operations | $ | — | $ | 593,264 | $ | 585,429 | ||||||
| Securities sold under agreements to repurchase - discontinued operations | — | 9,821 | 6,220 | |||||||||
| Total liabilities | $ | — | $ | 603,085 | $ | 591,649 | ||||||
| Net liabilities | $ | — | $ | (200,689 | ) | $ | (200,703 | ) | ||||
| Components of Net Income (Loss) from Discontinued Operations | ||||||||||||||||||||||||||||
| 2019 | 2018 | For the six months ended June 30, | ||||||||||||||||||||||||||
| (in thousands) | Second Quarter | First Quarter | Fourth Quarter | Third Quarter | Second Quarter | 2019 | 2018 | |||||||||||||||||||||
| Net interest income | $ | (39 | ) | $ | 3,125 | $ | 3,225 | $ | 3,266 | $ | 3,570 | $ | 3,086 | $ | 7,649 | |||||||||||||
| Provision for loan losses | — | — | (3,097 | ) | — | — | — | — | ||||||||||||||||||||
| Net interest income after provision | (39 | ) | 3,125 | 6,322 | 3,266 | 3,570 | 3,086 | 7,649 | ||||||||||||||||||||
| Service charges | 46 | 481 | 483 | 474 | 480 | 527 | 965 | |||||||||||||||||||||
| Mortgage income | — | 288 | 320 | 315 | 363 | 288 | 667 | |||||||||||||||||||||
| Gain on sale of branches | 34,475 | — | — | — | — | 34,475 | — | |||||||||||||||||||||
| Other income | (22 | ) | 21 | 47 | 22 | 22 | (1 | ) | 54 | |||||||||||||||||||
| Total noninterest income | 34,499 | 790 | 850 | 811 | 865 | 35,289 | 1,686 | |||||||||||||||||||||
| Salaries and employee benefits | 330 | 2,427 | 2,757 | 2,820 | 3,010 | 2,757 | 6,137 | |||||||||||||||||||||
| Occupancy | 71 | 339 | 479 | 556 | 511 | 410 | 981 | |||||||||||||||||||||
| Equipment and software | 8 | 123 | 158 | 217 | 203 | 131 | 404 | |||||||||||||||||||||
| Amortization of intangibles | — | 247 | 271 | 296 | 319 | 247 | 662 | |||||||||||||||||||||
| Communications and data processing | 197 | 389 | 440 | 381 | 346 | 586 | 708 | |||||||||||||||||||||
| Divestiture expense | 3,646 | 1,449 | 825 | — | — | 5,095 | — | |||||||||||||||||||||
| Other noninterest expense | 101 | 358 | 446 | 453 | 349 | 459 | 950 | |||||||||||||||||||||
| Total noninterest expense | 4,353 | 5,332 | 5,376 | 4,723 | 4,738 | 9,685 | 9,842 | |||||||||||||||||||||
| Net income (loss) before provision for income taxes | 30,107 | (1,417 | ) | 1,796 | (646 | ) | (303 | ) | 28,690 | (507 | ) | |||||||||||||||||
| Provision (benefit) for income taxes | 7,964 | (354 | ) | 449 | (161 | ) | (76 | ) | 7,610 | (127 | ) | |||||||||||||||||
| Net income (loss) from discontinued operations | $ | 22,143 | $ | (1,063 | ) | $ | 1,347 | $ | (485 | ) | $ | (227 | ) | $ | 21,080 | $ | (380 | ) | ||||||||||
| ATLANTIC CAPITAL BANCSHARES, INC. | ||||||||||||||||
| Consolidated Balance Sheets (unaudited) | ||||||||||||||||
| June 30, | March 31, | December 31, | June 30, | |||||||||||||
| (in thousands, except share data) | 2019 | 2019 | 2018 | 2018 | ||||||||||||
| ASSETS | ||||||||||||||||
| Cash and due from banks | $ | 24,206 | $ | 36,992 | $ | 42,895 | $ | 55,612 | ||||||||
| Interest-bearing deposits in banks | 52,932 | 76,720 | 216,040 | 42,477 | ||||||||||||
| Other short-term investments | — | 29,457 | 9,457 | 14,712 | ||||||||||||
| Cash and cash equivalents | 77,138 | 143,169 | 268,392 | 112,801 | ||||||||||||
| Investment securities available-for-sale | 348,723 | 402,640 | 402,486 | 453,968 | ||||||||||||
| Other investments | 31,912 | 28,844 | 29,236 | 36,190 | ||||||||||||
| Loans held for sale | — | 1,530 | 5,889 | 1,612 | ||||||||||||
| Loans held for sale - discontinued operations(1) | — | 384,779 | 373,030 | 382,732 | ||||||||||||
| Loans held for investment(1) | 1,789,740 | 1,734,557 | 1,728,073 | 1,551,579 | ||||||||||||
| Less: allowance for loan losses(2) | (18,186 | ) | (18,107 | ) | (17,851 | ) | (19,583 | ) | ||||||||
| Loans held for investment, net | 1,771,554 | 1,716,450 | 1,710,222 | 1,531,996 | ||||||||||||
| Premises held for sale - discontinued operations(1) | — | 7,736 | 7,722 | 7,296 | ||||||||||||
| Premises and equipment, net(1) | 20,037 | 23,311 | 9,779 | 9,582 | ||||||||||||
| Bank owned life insurance | 65,874 | 65,486 | 65,149 | 64,391 | ||||||||||||
| Goodwill - discontinued operations(1) | — | 4,555 | 4,555 | 4,555 | ||||||||||||
| Goodwill - continuing operations(1) | 19,925 | 17,135 | 17,135 | 17,135 | ||||||||||||
| Other intangibles, net | 3,095 | 4,241 | 4,388 | 5,322 | ||||||||||||
| Other real estate owned | 971 | 971 | 874 | 1,288 | ||||||||||||
| Other assets | 50,451 | 55,040 | 56,583 | 61,806 | ||||||||||||
| Total assets | $ | 2,389,680 | $ | 2,855,887 | $ | 2,955,440 | $ | 2,690,674 | ||||||||
| LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||||||||||||
| Deposits: | ||||||||||||||||
| Noninterest-bearing demand(1) | $ | 569,693 | $ | 561,829 | $ | 602,252 | $ | 464,282 | ||||||||
| Interest-bearing checking(1) | 309,709 | 233,838 | 252,490 | 241,461 | ||||||||||||
| Savings(1) | 1,090 | 896 | 725 | 951 | ||||||||||||
| Money market(1) | 802,973 | 962,741 | 987,183 | 647,247 | ||||||||||||
| Time(1) | 33,902 | 22,069 | 10,623 | 10,359 | ||||||||||||
| Brokered deposits | 134,164 | 65,811 | 99,241 | 92,656 | ||||||||||||
| Deposits to be assumed - discontinued operations(1) | — | 593,264 | 585,429 | 609,631 | ||||||||||||
| Total deposits | 1,851,531 | 2,440,448 | 2,537,943 | 2,066,587 | ||||||||||||
| Federal funds purchased | 35,000 | — | — | 65,000 | ||||||||||||
| Securities sold under agreements to repurchase - discontinued operations(1) | — | 9,821 | 6,220 | 8,024 | ||||||||||||
| Federal Home Loan Bank borrowings | 82,000 | — | — | 150,000 | ||||||||||||
| Long-term debt | 49,789 | 49,746 | 49,704 | 49,620 | ||||||||||||
| Other liabilities | 34,645 | 35,245 | 37,920 | 34,673 | ||||||||||||
| Total liabilities | 2,052,965 | 2,535,260 | 2,631,787 | 2,373,904 | ||||||||||||
| SHAREHOLDERS' EQUITY | ||||||||||||||||
| Preferred stock, no par value; 10,000,000 shares authorized; no shares issued and outstanding as of June 30, 2019, March 31, 2019, December 31, 2018, and June 30, 2018 | — | — | — | — | ||||||||||||
| Common stock, no par value; 100,000,000 shares authorized; 23,293,465, 24,466,964, 25,290,419, and 26,102,217 shares issued and outstanding as of June 30, 2019, March 31, 2019, December 31, 2018, and June 30, 2018, respectively | 256,791 | 276,346 | 291,771 | 304,793 | ||||||||||||
| Retained earnings | 76,343 | 47,191 | 42,187 | 26,844 | ||||||||||||
| Accumulated other comprehensive (loss) income | 3,581 | (2,910 | ) | (10,305 | ) | (14,867 | ) | |||||||||
| Total shareholders' equity | 336,715 | 320,627 | 323,653 | 316,770 | ||||||||||||
| TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | $ | 2,389,680 | $ | 2,855,887 | $ | 2,955,440 | $ | 2,690,674 | ||||||||
| (1)Assets and liabilities related to the sale of Tennessee and northwest Georgia banking operations were classified as held for sale as of March 31, 2019 and December 31, 2018, and prior periods have been adjusted retrospectively. (2)The allowance for loan losses has not been adjusted retrospectively for discontinued operations in periods prior to December 31, 2018. | ||||||||||||||||
| ATLANTIC CAPITAL BANCSHARES, INC. | ||||||||||||||||||||||||||||
| Consolidated Statements of Income (unaudited) (1) | ||||||||||||||||||||||||||||
| (in thousands, except share and per share data) | Three months ended | Six months ended | ||||||||||||||||||||||||||
| June 30, 2019 | March 31, 2019 | December 31, 2018 | September 30, 2018 | June 30, 2018 | June 30, 2019 | June 30, 2018 | ||||||||||||||||||||||
| INTEREST INCOME | ||||||||||||||||||||||||||||
| Loans, including fees | $ | 23,554 | $ | 22,752 | $ | 22,752 | $ | 20,117 | $ | 19,269 | $ | 46,306 | $ | 37,241 | ||||||||||||||
| Investment securities available-for-sale | 2,339 | 2,631 | 2,844 | 2,789 | 2,687 | 4,970 | 5,279 | |||||||||||||||||||||
| Interest and dividends on other interest‑earning assets | 705 | 814 | 1,032 | 1,111 | 880 | 1,519 | 1,595 | |||||||||||||||||||||
| Total interest income | 26,598 | 26,197 | 26,628 | 24,017 | 22,836 | 52,795 | 44,115 | |||||||||||||||||||||
| INTEREST EXPENSE | ||||||||||||||||||||||||||||
| Interest on deposits | 5,448 | 4,831 | 4,185 | 3,182 | 2,715 | 10,279 | 5,139 | |||||||||||||||||||||
| Interest on Federal Home Loan Bank advances | 270 | — | 487 | 637 | 766 | 270 | 1,275 | |||||||||||||||||||||
| Interest on federal funds purchased and securities sold under agreements to repurchase | 168 | 118 | 60 | 77 | 88 | 286 | 167 | |||||||||||||||||||||
| Interest on long-term debt | 823 | 824 | 828 | 824 | 823 | 1,647 | 1,652 | |||||||||||||||||||||
| Total interest expense | 6,709 | 5,773 | 5,560 | 4,720 | 4,392 | 12,482 | 8,233 | |||||||||||||||||||||
| NET INTEREST INCOME BEFORE PROVISION FOR LOAN LOSSES | 19,889 | 20,424 | 21,068 | 19,297 | 18,444 | 40,313 | 35,882 | |||||||||||||||||||||
| Provision for loan losses | 698 | 814 | 502 | 845 | (173 | ) | 1,512 | 599 | ||||||||||||||||||||
| NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES | 19,191 | 19,610 | 20,566 | 18,452 | 18,617 | 38,801 | 35,283 | |||||||||||||||||||||
| NONINTEREST INCOME | ||||||||||||||||||||||||||||
| Service charges | 870 | 794 | 876 | 804 | 828 | 1,664 | 1,535 | |||||||||||||||||||||
| Gains (losses) on sale of securities | 654 | — | (1,853 | ) | — | (2 | ) | 654 | (2 | ) | ||||||||||||||||||
| Gains (losses) on sale of other assets | (10 | ) | (3 | ) | — | 58 | (166 | ) | (13 | ) | (212 | ) | ||||||||||||||||
| Trust income | — | — | — | — | 507 | — | 1,025 | |||||||||||||||||||||
| Derivatives income | (233 | ) | (111 | ) | 154 | 20 | 20 | (344 | ) | 134 | ||||||||||||||||||
| Bank owned life insurance | 389 | 360 | 380 | 379 | 378 | 749 | 747 | |||||||||||||||||||||
| SBA lending activities | 1,096 | 1,086 | 425 | 882 | 997 | 2,182 | 2,299 | |||||||||||||||||||||
| Gain on sale of trust company | — | — | — | — | 1,681 | — | 1,681 | |||||||||||||||||||||
| Other noninterest income | 175 | 210 | 182 | 112 | 223 | 385 | 421 | |||||||||||||||||||||
| Total noninterest income | 2,941 | 2,336 | 164 | 2,255 | 4,466 | 5,277 | 7,628 | |||||||||||||||||||||
| NONINTEREST EXPENSE | ||||||||||||||||||||||||||||
| Salaries and employee benefits | 8,529 | 9,213 | 7,573 | 7,332 | 7,911 | 17,742 | 16,861 | |||||||||||||||||||||
| Occupancy | 689 | 639 | 655 | 732 | 700 | 1,328 | 1,585 | |||||||||||||||||||||
| Equipment and software | 753 | 739 | 783 | 747 | 701 | 1,492 | 1,287 | |||||||||||||||||||||
| Professional services | 792 | 775 | 947 | 796 | 943 | 1,567 | 1,768 | |||||||||||||||||||||
| Postage, printing and supplies | 29 | 48 | 30 | 55 | 44 | 77 | 81 | |||||||||||||||||||||
| Communications and data processing | 662 | 675 | 772 | 566 | 657 | 1,337 | 1,338 | |||||||||||||||||||||
| Marketing and business development | 233 | 226 | 224 | 211 | 135 | 459 | 275 | |||||||||||||||||||||
| FDIC premiums | 175 | 235 | 157 | 154 | 143 | 410 | 251 | |||||||||||||||||||||
| Other noninterest expense | 1,392 | 1,245 | 1,067 | 1,279 | 1,389 | 2,637 | 2,465 | |||||||||||||||||||||
| Total noninterest expense | 13,254 | 13,795 | 12,208 | 11,872 | 12,623 | 27,049 | 25,911 | |||||||||||||||||||||
| INCOME FROM CONTINUING OPERATIONS BEFORE PROVISION FOR INCOME TAXES | 8,878 | 8,151 | 8,522 | 8,835 | 10,460 | 17,029 | 17,000 | |||||||||||||||||||||
| Provision for income taxes | 1,869 | 1,711 | 1,039 | 1,837 | 2,082 | 3,580 | 3,431 | |||||||||||||||||||||
| NET INCOME FROM CONTINUING OPERATIONS | 7,009 | 6,440 | 7,483 | 6,998 | 8,378 | 13,449 | 13,569 | |||||||||||||||||||||
| DISCONTINUED OPERATIONS | ||||||||||||||||||||||||||||
| Income (loss) from discontinued operations | $ | 30,107 | $ | (1,417 | ) | $ | 1,796 | $ | (646 | ) | $ | (303 | ) | $ | 28,690 | $ | (507 | ) | ||||||||||
| Provision (benefit) for income taxes | 7,964 | (354 | ) | 449 | (161 | ) | (76 | ) | 7,610 | (127 | ) | |||||||||||||||||
| Net income (loss) from discontinued operations | 22,143 | (1,063 | ) | 1,347 | (485 | ) | (227 | ) | 21,080 | (380 | ) | |||||||||||||||||
| NET INCOME | $ | 29,152 | $ | 5,377 | $ | 8,830 | $ | 6,513 | $ | 8,151 | $ | 34,529 | $ | 13,189 | ||||||||||||||
| Net Income (Loss) per Common Share ‑ Basic | ||||||||||||||||||||||||||||
| Net income per common share - continuing operations | $ | 0.29 | $ | 0.26 | $ | 0.29 | $ | 0.27 | $ | 0.32 | $ | 0.55 | $ | 0.52 | ||||||||||||||
| Net income (loss) per common share - discontinued operations | 0.93 | (0.04 | ) | 0.05 | (0.02 | ) | (0.01 | ) | 0.87 | (0.01 | ) | |||||||||||||||||
| Net Income per Common Share ‑ Basic | 1.22 | 0.22 | 0.34 | 0.25 | 0.31 | 1.42 | 0.51 | |||||||||||||||||||||
| Net Income (Loss) per Common Share ‑ Diluted | ||||||||||||||||||||||||||||
| Net income per common share - continuing operations | $ | 0.29 | $ | 0.26 | $ | 0.29 | $ | 0.27 | $ | 0.32 | $ | 0.55 | $ | 0.52 | ||||||||||||||
| Net income (loss) per common share - discontinued operations | 0.92 | (0.04 | ) | 0.05 | (0.02 | ) | (0.01 | ) | 0.86 | (0.01 | ) | |||||||||||||||||
| Net Income per Common Share ‑ Diluted | 1.21 | 0.21 | 0.34 | 0.25 | 0.31 | 1.41 | 0.51 | |||||||||||||||||||||
| Weighted average shares - basic | 23,888,381 | 24,855,171 | 25,919,445 | 26,103,397 | 26,010,914 | 24,369,106 | 25,881,587 | |||||||||||||||||||||
| Weighted average shares - diluted | 24,040,806 | 25,019,384 | 26,043,799 | 26,254,772 | 26,200,026 | 24,527,392 | 26,073,602 | |||||||||||||||||||||
| (1)Discontinued operations have been reported retrospectively for all periods presented. | ||||||||||||||||||||||||||||
| ATLANTIC CAPITAL BANCSHARES, INC. | ||||||||||||||||||||||||
| Average Balance Sheets and Net Interest Margin Analysis | ||||||||||||||||||||||||
| Selected Financial Information | ||||||||||||||||||||||||
| Three months ended | ||||||||||||||||||||||||
| June 30, 2019 | March 31, 2019 | |||||||||||||||||||||||
| (dollars in thousands; taxable equivalent) | Average Balance | Interest Income/ Expense | Tax Equivalent Yield/Rate | Average Balance | Interest Income/ Expense | Tax Equivalent Yield/Rate | ||||||||||||||||||
| Assets | ||||||||||||||||||||||||
| Interest bearing deposits in other banks | $ | 70,628 | $ | 450 | 2.56 | % | $ | 92,168 | $ | 463 | 2.04 | % | ||||||||||||
| Other short-term investments | 3,993 | 32 | 3.21 | 11,680 | 86 | 2.99 | ||||||||||||||||||
| Investment securities: | ||||||||||||||||||||||||
| Taxable investment securities | 280,639 | 1,848 | 2.64 | 320,089 | 2,113 | 2.68 | ||||||||||||||||||
| Non-taxable investment securities(1) | 79,408 | 579 | 2.92 | 80,012 | 618 | 3.13 | ||||||||||||||||||
| Total investment securities | 360,047 | 2,427 | 2.70 | 400,101 | 2,731 | 2.77 | ||||||||||||||||||
| Loans - continuing operations | 1,769,803 | 23,554 | 5.34 | 1,707,682 | 22,752 | 5.40 | ||||||||||||||||||
| FHLB and FRB stock | 14,435 | 223 | 6.20 | 12,528 | 265 | 8.58 | ||||||||||||||||||
| Total interest-earning assets - continuing operations | 2,218,906 | 26,686 | 4.82 | 2,224,159 | 26,297 | 4.80 | ||||||||||||||||||
| Loans held for sale - discontinued operations | 30,198 | 47 | 0.62 | 381,783 | 4,541 | 4.82 | ||||||||||||||||||
| Total interest-earning assets | 2,249,104 | 26,733 | 4.77 | 2,605,942 | 30,838 | 4.80 | ||||||||||||||||||
| Non-earning assets | 191,398 | 223,130 | ||||||||||||||||||||||
| Total assets | $ | 2,440,502 | $ | 2,829,072 | ||||||||||||||||||||
| Liabilities | ||||||||||||||||||||||||
| Interest bearing deposits: | ||||||||||||||||||||||||
| NOW, money market, and savings | 1,175,237 | 4,733 | 1.62 | 1,124,350 | 4,255 | 1.53 | ||||||||||||||||||
| Time deposits | 32,358 | 50 | 0.62 | 12,847 | 38 | 1.20 | ||||||||||||||||||
| Brokered deposits | 106,524 | 665 | 2.50 | 81,141 | 538 | 2.69 | ||||||||||||||||||
| Total interest-bearing deposits | 1,314,119 | 5,448 | 1.66 | 1,218,338 | 4,831 | 1.61 | ||||||||||||||||||
| Total borrowings | 70,770 | 438 | 2.48 | 18,056 | 118 | 2.65 | ||||||||||||||||||
| Total long-term debt | 49,761 | 823 | 6.63 | 49,719 | 824 | 6.72 | ||||||||||||||||||
| Total interest-bearing liabilities - continuing operations | 1,434,650 | 6,709 | 1.88 | 1,286,113 | 5,773 | 1.82 | ||||||||||||||||||
| Interest-bearing liabilities - discontinued operations | 36,255 | 86 | 0.95 | 473,090 | 1,416 | 1.21 | ||||||||||||||||||
| Total interest-bearing liabilities | 1,470,905 | 6,795 | 1.85 | 1,759,203 | 7,189 | 1.66 | ||||||||||||||||||
| Demand deposits | 587,957 | 575,453 | ||||||||||||||||||||||
| Demand deposits - discontinued operations | 9,851 | 128,977 | ||||||||||||||||||||||
| Other liabilities | 31,670 | 44,627 | ||||||||||||||||||||||
| Shareholders' equity | 340,119 | 320,812 | ||||||||||||||||||||||
| Total liabilities and shareholders' equity | $ | 2,440,502 | $ | 2,829,072 | ||||||||||||||||||||
| Net interest spread - continuing operations | 2.94 | % | 2.98 | % | ||||||||||||||||||||
| Net interest income and net interest margin - continuing operations(2) | $ | 19,977 | 3.61 | % | $ | 20,524 | 3.74 | % | ||||||||||||||||
| Net interest income and net interest margin(2) | $ | 19,938 | 3.56 | % | $ | 23,649 | 3.68 | % | ||||||||||||||||
| Non-taxable equivalent net interest margin | 3.54 | % | 3.66 | % | ||||||||||||||||||||
| (1) Interest revenue on tax-exempt securities has been increased to reflect comparable interest on taxable securities. The rate used was 21%, reflecting the statutory federal income tax rate. | ||||||||||||||||||||||||
| (2) Tax equivalent net interest income divided by total interest-earning assets using the appropriate day count convention based on the type of interest-earning asset. | ||||||||||||||||||||||||
| ATLANTIC CAPITAL BANCSHARES, INC. | ||||||||||||||||||||||||
| Average Balance Sheets and Net Interest Margin Analysis | ||||||||||||||||||||||||
| Selected Financial Information | ||||||||||||||||||||||||
| Three months ended | ||||||||||||||||||||||||
| June 30, 2019 | June 30, 2018 | |||||||||||||||||||||||
| (dollars in thousands; taxable equivalent) | Average Balance | Interest Income/ Expense | Tax Equivalent Yield/Rate | Average Balance | Interest Income/ Expense | Tax Equivalent Yield/Rate | ||||||||||||||||||
| Assets | ||||||||||||||||||||||||
| Interest bearing deposits in other banks | $ | 70,628 | $ | 450 | 2.56 | % | $ | 97,501 | $ | 562 | 2.31 | % | ||||||||||||
| Other short-term investments | 3,993 | 32 | 3.21 | 9,262 | 64 | 2.77 | ||||||||||||||||||
| Investment securities: | ||||||||||||||||||||||||
| Taxable investment securities | 280,639 | 1,848 | 2.64 | 378,291 | 2,212 | 2.35 | ||||||||||||||||||
| Non-taxable investment securities(1) | 79,408 | 579 | 2.92 | 76,343 | 573 | 3.01 | ||||||||||||||||||
| Total investment securities | 360,047 | 2,427 | 2.70 | 454,634 | 2,785 | 2.46 | ||||||||||||||||||
| Loans - continuing operations | 1,769,803 | 23,554 | 5.34 | 1,540,351 | 19,269 | 5.02 | ||||||||||||||||||
| FHLB and FRB stock | 14,435 | 223 | 6.20 | 19,357 | 254 | 5.26 | ||||||||||||||||||
| Total interest-earning assets - continuing operations | 2,218,906 | 26,686 | 4.82 | 2,121,105 | 22,934 | 4.34 | ||||||||||||||||||
| Loans held for sale - discontinued operations | 30,198 | 47 | 0.62 | 386,712 | 4,510 | 4.68 | ||||||||||||||||||
| Total interest-earning assets | 2,249,104 | 26,733 | 4.77 | 2,507,817 | 27,444 | 4.39 | ||||||||||||||||||
| Non-earning assets | 191,398 | 210,254 | ||||||||||||||||||||||
| Total assets | $ | 2,440,502 | $ | 2,718,071 | ||||||||||||||||||||
| Liabilities | ||||||||||||||||||||||||
| Interest bearing deposits: | ||||||||||||||||||||||||
| NOW, money market, and savings | 1,175,237 | 4,733 | 1.62 | 932,991 | 2,222 | 0.96 | ||||||||||||||||||
| Time deposits | 32,358 | 50 | 0.62 | 9,855 | 25 | 1.02 | ||||||||||||||||||
| Brokered deposits | 106,524 | 665 | 2.50 | 100,425 | 468 | 1.87 | ||||||||||||||||||
| Total interest-bearing deposits | 1,314,119 | 5,448 | 1.66 | 1,043,271 | 2,715 | 1.04 | ||||||||||||||||||
| Total borrowings | 70,770 | 438 | 2.48 | 180,699 | 853 | 1.89 | ||||||||||||||||||
| Total long-term debt | 49,761 | 823 | 6.63 | 49,592 | 823 | 6.66 | ||||||||||||||||||
| Total interest-bearing liabilities - continuing operations | 1,434,650 | 6,709 | 1.88 | 1,273,562 | 4,391 | 1.38 | ||||||||||||||||||
| Interest-bearing liabilities - discontinued operations | 36,255 | 86 | 0.95 | 464,598 | 941 | 0.81 | ||||||||||||||||||
| Total interest-bearing liabilities | 1,470,905 | 6,795 | 1.85 | 1,738,160 | 5,332 | 1.23 | ||||||||||||||||||
| Demand deposits | 587,957 | 489,722 | ||||||||||||||||||||||
| Demand deposits - discontinued operations | 9,851 | 143,391 | ||||||||||||||||||||||
| Other liabilities | 31,670 | 34,255 | ||||||||||||||||||||||
| Shareholders' equity | 340,119 | 312,543 | ||||||||||||||||||||||
| Total liabilities and shareholders' equity | $ | 2,440,502 | $ | 2,718,071 | ||||||||||||||||||||
| Net interest spread - continuing operations | 2.94 | % | 2.96 | % | ||||||||||||||||||||
| Net interest income and net interest margin - continuing operations(2) | $ | 19,977 | 3.61 | % | $ | 18,543 | 3.51 | % | ||||||||||||||||
| Net interest income and net interest margin(2) | $ | 19,938 | 3.56 | % | $ | 22,112 | 3.54 | % | ||||||||||||||||
| Non-taxable equivalent net interest margin | 3.54 | % | 3.52 | % | ||||||||||||||||||||
| (1) Interest revenue on tax-exempt securities has been increased to reflect comparable interest on taxable securities. The rate used was 21%, reflecting the statutory federal income tax rate. | ||||||||||||||||||||||||
| (2) Tax equivalent net interest income divided by total interest-earning assets using the appropriate day count convention based on the type of interest-earning asset. | ||||||||||||||||||||||||
| ATLANTIC CAPITAL BANCSHARES, INC. | ||||||||||||||||||||||||
| Average Balance Sheets and Net Interest Margin Analysis | ||||||||||||||||||||||||
| Selected Financial Information | ||||||||||||||||||||||||
| Six months ended | ||||||||||||||||||||||||
| June 30, 2019 | June 30, 2018 | |||||||||||||||||||||||
| (dollars in thousands; taxable equivalent) | Average Balance | Interest Income/ Expense | Tax Equivalent Yield/Rate | Average Balance | Interest Income/ Expense | Tax Equivalent Yield/Rate | ||||||||||||||||||
| Assets | ||||||||||||||||||||||||
| Interest bearing deposits in other banks | $ | 81,339 | $ | 913 | 2.26 | % | $ | 87,907 | $ | 959 | 2.20 | % | ||||||||||||
| Other short-term investments | 7,815 | 118 | 3.04 | 9,801 | 127 | 2.61 | ||||||||||||||||||
| Investment securities: | ||||||||||||||||||||||||
| Taxable investment securities | 300,255 | 3,962 | 2.66 | 377,038 | 4,328 | 2.31 | ||||||||||||||||||
| Non-taxable investment securities(1) | 79,709 | 1,196 | 3.03 | 77,239 | 1,152 | 3.01 | ||||||||||||||||||
| Total investment securities | 379,964 | 5,158 | 2.74 | 454,277 | 5,480 | 2.43 | ||||||||||||||||||
| Loans - continuing operations | 1,708,549 | 46,306 | 5.47 | 1,538,504 | 37,241 | 4.88 | ||||||||||||||||||
| FHLB and FRB stock | 13,487 | 488 | 7.30 | 18,630 | 509 | 5.51 | ||||||||||||||||||
| Total interest-earning assets - continuing operations | 2,191,154 | 52,983 | 4.88 | 2,109,119 | 44,316 | 4.24 | ||||||||||||||||||
| Loans held for sale - discontinued operations | 235,384 | 4,588 | 3.93 | 394,471 | 9,213 | 4.71 | ||||||||||||||||||
| Total interest-earning assets | 2,426,538 | 57,571 | 4.78 | 2,503,590 | 53,529 | 4.31 | ||||||||||||||||||
| Non-earning assets | 207,175 | 207,893 | ||||||||||||||||||||||
| Total assets | $ | 2,633,713 | $ | 2,711,483 | ||||||||||||||||||||
| Liabilities | ||||||||||||||||||||||||
| Interest bearing deposits: | ||||||||||||||||||||||||
| NOW, money market, and savings | 1,125,253 | 8,988 | 1.61 | 933,699 | 4,139 | 0.89 | ||||||||||||||||||
| Time deposits | 11,049 | 88 | 1.61 | 9,828 | 53 | 1.09 | ||||||||||||||||||
| Brokered deposits | 93,903 | 1,203 | 2.58 | 109,058 | 947 | 1.75 | ||||||||||||||||||
| Total interest-bearing deposits | 1,230,205 | 10,279 | 1.68 | 1,052,585 | 5,139 | 0.98 | ||||||||||||||||||
| Total borrowings | 43,798 | 556 | 2.56 | 166,402 | 1,442 | 1.75 | ||||||||||||||||||
| Total long-term debt | 49,740 | 1,647 | 6.68 | 49,571 | 1,652 | 6.72 | ||||||||||||||||||
| Total interest-bearing liabilities - continuing operations | 1,323,743 | 12,482 | 1.90 | 1,268,558 | 8,233 | 1.31 | ||||||||||||||||||
| Interest-bearing liabilities - discontinued operations | 290,515 | 1,502 | 1.04 | 461,331 | 1,564 | 0.68 | ||||||||||||||||||
| Total interest-bearing liabilities | 1,614,258 | 13,984 | 1.75 | 1,729,889 | 9,797 | 1.14 | ||||||||||||||||||
| Demand deposits | 571,669 | 496,239 | ||||||||||||||||||||||
| Demand deposits - discontinued operations | 79,156 | 139,667 | ||||||||||||||||||||||
| Other liabilities | 38,111 | 35,990 | ||||||||||||||||||||||
| Shareholders' equity | 330,519 | 309,698 | ||||||||||||||||||||||
| Total liabilities and shareholders' equity | $ | 2,633,713 | $ | 2,711,483 | ||||||||||||||||||||
| Net interest spread - continuing operations | 2.98 | % | 2.94 | % | ||||||||||||||||||||
| Net interest income and net interest margin - continuing operations(2) | $ | 40,501 | 3.73 | % | $ | 36,083 | 3.45 | % | ||||||||||||||||
| Net interest income and net interest margin(2) | $ | 43,587 | 3.62 | % | $ | 43,732 | 3.52 | % | ||||||||||||||||
| Non-taxable equivalent net interest margin | 3.61 | % | 3.51 | % | ||||||||||||||||||||
| (1) Interest revenue on tax-exempt securities has been increased to reflect comparable interest on taxable securities. The rate used was 21%, reflecting the statutory federal income tax rate. | ||||||||||||||||||||||||
| (2) Tax equivalent net interest income divided by total interest-earning assets using the appropriate day count convention based on the type of interest-earning asset. | ||||||||||||||||||||||||
| ATLANTIC CAPITAL BANCSHARES, INC. | ||||||||||||||||||||||||||||
| Period End Loans(1) | ||||||||||||||||||||||||||||
| (dollars in thousands) | June 30, 2019 | March 31, 2019 | December 31, 2018 | September 30, 2018 | June 30, 2018 | Linked Quarter Change | Year Over Year Change | |||||||||||||||||||||
| Loans held for sale | ||||||||||||||||||||||||||||
| Loans held for sale | $ | — | $ | 1,530 | $ | 5,889 | $ | 1,886 | $ | 1,612 | $ | (1,530 | ) | $ | (1,612 | ) | ||||||||||||
| Loans held for sale - discontinued operations | — | 384,779 | 373,030 | 375,976 | 382,732 | (384,779 | ) | (382,732 | ) | |||||||||||||||||||
| Total loans held for sale | $ | — | $ | 386,309 | $ | 378,919 | $ | 377,862 | $ | 384,344 | $ | (386,309 | ) | $ | (384,344 | ) | ||||||||||||
| Loans held for investment | ||||||||||||||||||||||||||||
| Commercial loans: | ||||||||||||||||||||||||||||
| Commercial and industrial | $ | 701,566 | $ | 679,489 | $ | 645,374 | $ | 581,737 | $ | 546,497 | $ | 22,077 | $ | 155,069 | ||||||||||||||
| Commercial real estate: | ||||||||||||||||||||||||||||
| Multifamily | 43,907 | 43,929 | 88,826 | 108,001 | 92,013 | (22 | ) | (48,106 | ) | |||||||||||||||||||
| Owner occupied | 313,310 | 304,945 | 298,291 | 295,801 | 265,576 | 8,365 | 47,734 | |||||||||||||||||||||
| Investment | 409,629 | 394,087 | 407,711 | 409,145 | 386,072 | 15,542 | 23,557 | |||||||||||||||||||||
| Construction and land: | ||||||||||||||||||||||||||||
| 1-4 family residential construction | 3,696 | 2,067 | 1,006 | — | 378 | 1,629 | 3,318 | |||||||||||||||||||||
| Other construction, development, and land | 195,260 | 171,818 | 155,226 | 147,114 | 134,764 | 23,442 | 60,496 | |||||||||||||||||||||
| Mortgage warehouse loans | 10,665 | 22,267 | 27,967 | 27,838 | 38,352 | (11,602 | ) | (27,687 | ) | |||||||||||||||||||
| Total commercial loans | 1,678,033 | 1,618,602 | 1,624,401 | 1,569,636 | 1,463,652 | 59,431 | 214,381 | |||||||||||||||||||||
| Residential: | ||||||||||||||||||||||||||||
| Residential mortgages | 31,338 | 32,915 | 32,800 | 24,904 | 20,270 | (1,577 | ) | 11,068 | ||||||||||||||||||||
| Home equity | 24,303 | 23,171 | 22,822 | 33,410 | 32,638 | 1,132 | (8,335 | ) | ||||||||||||||||||||
| Total residential loans | 55,641 | 56,086 | 55,622 | 58,314 | 52,908 | (445 | ) | 2,733 | ||||||||||||||||||||
| Consumer | 34,618 | 35,203 | 25,851 | 26,825 | 25,531 | (585 | ) | 9,087 | ||||||||||||||||||||
| Other | 24,126 | 26,663 | 24,712 | 10,579 | 12,409 | (2,537 | ) | 11,717 | ||||||||||||||||||||
| 1,792,418 | 1,736,554 | 1,730,586 | 1,665,354 | 1,554,500 | 55,864 | 237,918 | ||||||||||||||||||||||
| Less net deferred fees and other unearned income | (2,678 | ) | (1,997 | ) | (2,513 | ) | (2,896 | ) | (2,921 | ) | (681 | ) | 243 | |||||||||||||||
| Total loans held for investment | $ | 1,789,740 | $ | 1,734,557 | $ | 1,728,073 | $ | 1,662,458 | $ | 1,551,579 | $ | 55,183 | $ | 238,161 | ||||||||||||||
| Total loans | $ | 1,789,740 | $ | 2,120,866 | $ | 2,106,992 | $ | 2,040,320 | $ | 1,935,923 | $ | (331,126 | ) | $ | (146,183 | ) | ||||||||||||
| (1)Loans held for sale-discontinued operations and loans held for investment have been reported retrospectively for all periods prior to December 31, 2018. | ||||||||||||||||||||||||||||
| ATLANTIC CAPITAL BANCSHARES, INC. | |||||||||||||||||||||
| Allowance for Loan Losses Activity and Credit Quality | |||||||||||||||||||||
| 2019 | 2018 | ||||||||||||||||||||
| (dollars in thousands) | Second Quarter | First Quarter | Fourth Quarter | Third Quarter | Second Quarter | ||||||||||||||||
| Balance at beginning of period | $ | 18,107 | $ | 17,851 | $ | 20,443 | $ | 19,583 | $ | 19,885 | |||||||||||
| Provision for loan losses | 698 | 814 | 595 | 758 | (173 | ) | |||||||||||||||
| Provision for loan losses (reversal of provision) - discontinued operations | — | — | (3,097 | ) | — | — | |||||||||||||||
| Provision for PCI loan losses | — | — | (93 | ) | 87 | — | |||||||||||||||
| Loans charged-off: | |||||||||||||||||||||
| Commercial and industrial | (588 | ) | (549 | ) | — | — | — | ||||||||||||||
| Commercial real estate | (47 | ) | — | — | — | (50 | ) | ||||||||||||||
| Construction and land | — | — | — | — | — | ||||||||||||||||
| Residential mortgages | — | (9 | ) | (5 | ) | — | — | ||||||||||||||
| Home equity | — | — | — | — | (102 | ) | |||||||||||||||
| Consumer | — | (37 | ) | (3 | ) | — | (10 | ) | |||||||||||||
| Other | — | — | — | — | — | ||||||||||||||||
| Total loans charged-off | (635 | ) | (595 | ) | (8 | ) | — | (162 | ) | ||||||||||||
| Recoveries on loans previously charged-off: | |||||||||||||||||||||
| Commercial and industrial | — | 14 | — | — | — | ||||||||||||||||
| Commercial real estate | — | — | — | — | 28 | ||||||||||||||||
| Construction and land | — | 3 | — | — | — | ||||||||||||||||
| Residential mortgages | — | 7 | 4 | — | — | ||||||||||||||||
| Home equity | — | 1 | — | — | — | ||||||||||||||||
| Consumer | 16 | 12 | 7 | 15 | 5 | ||||||||||||||||
| Other | — | — | — | — | — | ||||||||||||||||
| Total recoveries | 16 | 37 | 11 | 15 | 33 | ||||||||||||||||
| Net charge-offs | $ | (619 | ) | $ | (558 | ) | $ | 3 | $ | 15 | $ | (129 | ) | ||||||||
| Balance at period end (1) | $ | 18,186 | $ | 18,107 | $ | 17,851 | $ | 20,443 | $ | 19,583 | |||||||||||
| Loans | |||||||||||||||||||||
| Loans held for sale | $ | — | $ | 1,530 | $ | 5,889 | $ | 1,886 | $ | 1,612 | |||||||||||
| Loans held for sale - discontinued operations | — | 384,779 | 373,030 | 375,976 | 382,732 | ||||||||||||||||
| Loans held for investment - continuing operations | 1,789,740 | 1,734,557 | 1,728,073 | 1,662,458 | 1,551,579 | ||||||||||||||||
| Total loans | $ | 1,789,740 | $ | 2,120,866 | $ | 2,106,992 | $ | 2,040,320 | $ | 1,935,923 | |||||||||||
| Non-performing loans - continuing operations (4) | $ | 6,352 | $ | 8,830 | $ | 3,252 | $ | 2,160 | $ | 1,697 | |||||||||||
| Non-performing loans - discontinued operations (4) | — | 1,506 | 1,924 | 556 | 709 | ||||||||||||||||
| Total non-performing loans | 6,352 | 10,336 | 5,176 | 2,716 | 2,406 | ||||||||||||||||
| Foreclosed properties (OREO) | 971 | 971 | 874 | 968 | 1,288 | ||||||||||||||||
| Total nonperforming assets | $ | 7,323 | $ | 11,307 | $ | 6,050 | $ | 3,684 | $ | 3,694 | |||||||||||
| Allowance for loan losses to loans held for investment (2) | 1.02 | % | 1.04 | % | 1.03 | % | 1.00 | % | 1.01 | % | |||||||||||
| Net charge-offs to average loans (3) | 0.14 | 0.11 | — | — | 0.03 | ||||||||||||||||
| Non-performing loans as a percentage of total loans - continuing operations (4) | 0.35 | % | 0.51 | % | 0.19 | % | 0.13 | % | 0.11 | % | |||||||||||
| Non-performing loans as a percentage of total loans - discontinued operations (4) | — | 0.39 | 0.52 | 0.15 | 0.19 | ||||||||||||||||
| Non-performing loans as a percentage of total loans (4) | 0.35 | 0.49 | 0.25 | 0.13 | 0.12 | ||||||||||||||||
| Non-performing assets as a percentage of total assets - continuing operations (4) | 0.31 | % | 0.34 | % | 0.14 | % | 0.11 | % | 0.11 | % | |||||||||||
| Non-performing assets as a percentage of total assets - discontinued operations (4) | — | 0.05 | 0.07 | 0.02 | 0.03 | ||||||||||||||||
| Non-performing assets as a percentage of total assets (4) | 0.31 | 0.40 | 0.20 | 0.13 | 0.14 | ||||||||||||||||
| (1)The allowance for loan losses has not been adjusted retrospectively in periods prior to December 31, 2018. (2)The second quarter 2019, first quarter 2019 and fourth quarter 2018 ratios are calculated on a continuing operations basis. Prior period ratios have not been retroactively adjusted for the impact of discontinued operations. (3)Annualized. (4)Excludes non-performing PCI loans. | |||||||||||||||||||||
| ATLANTIC CAPITAL BANCSHARES, INC. | ||||||||||||||||||||||||||||
| Period End Deposits | ||||||||||||||||||||||||||||
| (dollars in thousands) | June 30, 2019 | March 31, 2019 | December 31, 2018 | September 30, 2018 | June 30, 2018 | Linked Quarter Change | Year Over Year Change | |||||||||||||||||||||
| DDA | $ | 569,693 | $ | 561,829 | $ | 602,252 | $ | 518,155 | $ | 464,282 | $ | 7,864 | $ | 105,411 | ||||||||||||||
| NOW | 309,709 | 233,838 | 252,490 | 407,214 | 241,461 | 75,871 | 68,248 | |||||||||||||||||||||
| Savings | 1,090 | 896 | 725 | 698 | 951 | 194 | 139 | |||||||||||||||||||||
| Money market | 802,973 | 962,741 | 987,183 | 759,583 | 647,247 | (159,768 | ) | 155,726 | ||||||||||||||||||||
| Time | 33,902 | 22,069 | 10,623 | 10,396 | 10,359 | 11,833 | 23,543 | |||||||||||||||||||||
| Brokered | 134,164 | 65,811 | 99,241 | 79,119 | 92,656 | 68,353 | 41,508 | |||||||||||||||||||||
| Total deposits - continuing operations | 1,851,531 | 1,847,184 | 1,952,514 | 1,775,165 | 1,456,956 | 4,347 | 394,575 | |||||||||||||||||||||
| Deposits to be assumed - discontinued operations | — | 593,264 | 585,429 | 604,659 | 609,631 | (593,264 | ) | (609,631 | ) | |||||||||||||||||||
| Total deposits | $ | 1,851,531 | $ | 2,440,448 | $ | 2,537,943 | $ | 2,379,824 | $ | 2,066,587 | $ | (588,917 | ) | $ | (215,056 | ) | ||||||||||||
| Payments clients | $ | 301,413 | $ | 361,192 | $ | 397,608 | $ | 258,320 | $ | 251,748 | $ | (59,779 | ) | $ | 49,665 | |||||||||||||
| Average Deposits | ||||||||||||||||||||||||||||
| 2019 | 2018 | Linked Quarter Change | Q2 2019 vs Q2 2018 | |||||||||||||||||||||||||
| (dollars in thousands) | Second Quarter | First Quarter | Fourth Quarter | Third Quarter | Second Quarter | |||||||||||||||||||||||
| DDA | $ | 587,957 | $ | 575,453 | $ | 597,239 | $ | 561,355 | $ | 489,722 | $ | 12,504 | $ | 98,235 | ||||||||||||||
| NOW | 314,601 | 276,212 | 280,449 | 314,759 | 287,283 | 38,389 | 27,318 | |||||||||||||||||||||
| Savings | 956 | 884 | 712 | 616 | 674 | 72 | 282 | |||||||||||||||||||||
| Money market | 859,680 | 847,254 | 798,017 | 697,578 | 645,034 | 12,426 | 214,646 | |||||||||||||||||||||
| Time | 32,358 | 12,847 | 10,117 | 10,406 | 9,855 | 19,511 | 22,503 | |||||||||||||||||||||
| Brokered | 106,524 | 81,141 | 93,558 | 67,937 | 100,425 | 25,383 | 6,099 | |||||||||||||||||||||
| Total deposits - continuing operations | 1,902,076 | 1,793,791 | 1,780,092 | 1,652,651 | 1,532,993 | 108,285 | 369,083 | |||||||||||||||||||||
| Deposits to be assumed - discontinued operations | 45,350 | 593,313 | 600,769 | 601,421 | 602,832 | (547,963 | ) | (557,482 | ) | |||||||||||||||||||
| Total deposits | $ | 1,947,426 | $ | 2,387,104 | $ | 2,380,861 | $ | 2,254,072 | $ | 2,135,825 | $ | (439,678 | ) | $ | (188,399 | ) | ||||||||||||
| Payments clients | $ | 285,949 | $ | 295,059 | $ | 263,800 | $ | 227,029 | $ | 219,016 | $ | (9,110 | ) | $ | 66,933 | |||||||||||||
| Noninterest bearing deposits as a percentage of average deposits - continuing operations | 30.9 | % | 32.1 | % | 33.6 | % | 34.0 | % | 31.9 | % | ||||||||||||||||||
| Cost of deposits - continuing operations | 1.15 | % | 1.09 | % | 0.93 | % | 0.76 | % | 0.71 | % | ||||||||||||||||||
| ATLANTIC CAPITAL BANCSHARES, INC. | |||||||||||||||||||||||||||||
| Non-GAAP Performance and Financial Measures Reconciliation | |||||||||||||||||||||||||||||
| 2019 | 2018 | For the six months ended June 30, | |||||||||||||||||||||||||||
| (in thousands, except share and per share data) | Second Quarter | First Quarter | Fourth Quarter | Third Quarter | Second Quarter | 2019 | 2018 | ||||||||||||||||||||||
| Taxable equivalent interest income reconciliation | |||||||||||||||||||||||||||||
| Interest income - GAAP | $ | 26,598 | $ | 26,197 | $ | 26,628 | $ | 24,017 | $ | 22,836 | $ | 52,795 | $ | 44,115 | |||||||||||||||
| Taxable equivalent adjustment | 88 | 100 | 97 | 97 | 98 | 188 | 201 | ||||||||||||||||||||||
| Interest income - taxable equivalent | $ | 26,686 | $ | 26,297 | $ | 26,725 | $ | 24,114 | $ | 22,934 | $ | 52,983 | $ | 44,316 | |||||||||||||||
| Taxable equivalent net interest income reconciliation | |||||||||||||||||||||||||||||
| Net interest income - GAAP | $ | 19,889 | $ | 20,424 | $ | 21,068 | $ | 19,297 | $ | 18,444 | $ | 40,313 | $ | 35,882 | |||||||||||||||
| Taxable equivalent adjustment | 88 | 100 | 97 | 97 | 98 | 188 | 201 | ||||||||||||||||||||||
| Net interest income - taxable equivalent | $ | 19,977 | $ | 20,524 | $ | 21,165 | $ | 19,394 | $ | 18,542 | $ | 40,501 | $ | 36,083 | |||||||||||||||
| Taxable equivalent net interest margin reconciliation - continuing operations | |||||||||||||||||||||||||||||
| Net interest margin - GAAP - continuing operations | 3.60 | % | 3.72 | % | 3.64 | % | 3.46 | % | 3.49 | % | 3.71 | % | 3.43 | % | |||||||||||||||
| Impact of taxable equivalent adjustment | 0.01 | 0.02 | 0.02 | 0.02 | 0.02 | 0.02 | 0.02 | ||||||||||||||||||||||
| Net interest margin - taxable equivalent - continuing operations | 3.61 | % | 3.74 | % | 3.66 | % | 3.48 | % | 3.51 | % | 3.73 | % | 3.45 | % | |||||||||||||||
| Taxable equivalent net interest margin reconciliation | |||||||||||||||||||||||||||||
| Net interest margin - GAAP | 3.54 | % | 3.66 | % | 3.60 | % | 3.45 | % | 3.52 | % | 3.61 | % | 3.51 | % | |||||||||||||||
| Impact of taxable equivalent adjustment | 0.02 | 0.02 | 0.02 | 0.02 | 0.02 | 0.01 | 0.01 | ||||||||||||||||||||||
| Net interest margin - taxable equivalent | 3.56 | % | 3.68 | % | 3.62 | % | 3.47 | % | 3.54 | % | 3.62 | % | 3.52 | % | |||||||||||||||
| Income before income taxes reconciliation | |||||||||||||||||||||||||||||
| Income before income taxes - GAAP | $ | 8,878 | $ | 8,151 | $ | 8,522 | $ | 8,835 | $ | 10,460 | $ | 17,029 | $ | 17,000 | |||||||||||||||
| Taxable equivalent adjustment | 88 | 100 | 97 | 97 | 98 | 188 | 201 | ||||||||||||||||||||||
| Income before income taxes | $ | 8,966 | $ | 8,251 | $ | 8,619 | $ | 8,932 | $ | 10,558 | $ | 17,217 | $ | 17,201 | |||||||||||||||
| Income tax reconciliation | |||||||||||||||||||||||||||||
| Income tax expense - GAAP | $ | 1,869 | $ | 1,711 | $ | 1,039 | $ | 1,837 | $ | 2,082 | $ | 3,580 | $ | 3,431 | |||||||||||||||
| Taxable equivalent adjustment | 88 | 100 | 97 | 97 | 98 | 188 | 201 | ||||||||||||||||||||||
| Income tax expense | $ | 1,957 | $ | 1,811 | $ | 1,136 | $ | 1,934 | $ | 2,180 | $ | 3,768 | $ | 3,632 | |||||||||||||||
| Tangible book value per common share reconciliation | |||||||||||||||||||||||||||||
| Total shareholders' equity | $ | 336,715 | $ | 320,627 | $ | 323,653 | $ | 320,237 | $ | 316,770 | $ | 336,715 | $ | 316,770 | |||||||||||||||
| Intangible assets | (19,925 | ) | (22,848 | ) | (23,095 | ) | (23,367 | ) | (23,662 | ) | (19,925 | ) | (23,662 | ) | |||||||||||||||
| Total tangible common equity | $ | 316,790 | $ | 297,779 | $ | 300,558 | $ | 296,870 | $ | 293,108 | $ | 316,790 | $ | 293,108 | |||||||||||||||
| Common shares outstanding | 23,293,465 | 24,466,964 | 25,290,419 | 26,103,666 | 26,102,217 | 23,293,465 | 26,102,217 | ||||||||||||||||||||||
| Book value per common share - GAAP | $ | 14.46 | $ | 13.10 | $ | 12.80 | $ | 12.27 | $ | 12.14 | $ | 14.46 | $ | 12.14 | |||||||||||||||
| Tangible book value | 13.60 | 12.17 | 11.88 | 11.37 | 11.23 | 13.60 | 11.23 | ||||||||||||||||||||||
| Tangible common equity to tangible assets reconciliation | |||||||||||||||||||||||||||||
| Total shareholders' equity | $ | 336,715 | $ | 320,627 | $ | 323,653 | $ | 320,237 | $ | 316,770 | $ | 336,715 | $ | 316,770 | |||||||||||||||
| Intangible assets | (19,925 | ) | (22,848 | ) | (23,095 | ) | (23,367 | ) | (23,662 | ) | (19,925 | ) | (23,662 | ) | |||||||||||||||
| Total tangible common equity | $ | 316,790 | $ | 297,779 | $ | 300,558 | $ | 296,870 | $ | 293,108 | $ | 316,790 | $ | 293,108 | |||||||||||||||
| Total assets | $ | 2,389,680 | $ | 2,855,887 | $ | 2,955,440 | $ | 2,882,721 | $ | 2,690,674 | $ | 2,389,680 | $ | 2,690,674 | |||||||||||||||
| Intangible assets | (19,925 | ) | (22,848 | ) | (23,095 | ) | (23,367 | ) | (23,662 | ) | (19,925 | ) | (23,662 | ) | |||||||||||||||
| Total tangible assets | $ | 2,369,755 | $ | 2,833,039 | $ | 2,932,345 | $ | 2,859,354 | $ | 2,667,012 | $ | 2,369,755 | $ | 2,667,012 | |||||||||||||||
| Tangible common equity to tangible assets | 13.37 | % | 10.51 | % | 10.25 | % | 10.38 | % | 10.99 | % | 13.37 | % | 10.99 | % | |||||||||||||||
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