ATLANTA, Oct. 24, 2019 (GLOBE NEWSWIRE) -- Atlantic Capital Bancshares, Inc. ACBI announced net income from continuing operations for the quarter ended September 30, 2019 of $7.6 million, or $0.33 per diluted share, compared to $7.0 million, or $0.27 per diluted share, for the third quarter of 2018 and $7.0 million, or $0.29 per diluted share, for the second quarter of 2019.
Diluted earnings per share from continuing operations for the first nine months of 2019 improved to $0.88, an increase of $0.09, or 11%, compared to the first nine months of 2018.
"With solid loan and deposit growth from new and expanded client relationships, disciplined expense management, and sound credit quality, Atlantic Capital recorded another quarter of strong operating results," remarked Douglas Williams, President and Chief Executive Officer.
Third Quarter Highlights(1)
- Tangible book value per share increased to $13.91, from $11.37 at September 30, 2018 and $13.60 at June 30, 2019.
- Total loans held for investment increased $173.2 million, or 10.4%, from September 30, 2018 and $45.9 million, or 10.3% annualized, from June 30, 2019.
- Average deposits from continuing operations increased $297.0 million, or 18.0%, compared to the third quarter of 2018 and $47.6 million, or 10.0% annualized, compared to the second quarter of 2019.
- Efficiency ratio from continuing operations of 55.7% compared to 55.1% in the third quarter of 2018 and 58.1% in the second quarter of 2019.
- Taxable equivalent net interest margin from continuing operations was 3.52%, compared to 3.48% in the third quarter of 2018 and 3.61% in the second quarter of 2019.
- The company repurchased 1.2 million shares in the third quarter totaling $20.1 million, and has repurchased 4.1 million shares totaling $70.9 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 $20.1 million for the third quarter of 2019, an increase of $694,000, or 4%, from the third quarter of 2018, and an increase of $111,000, or 2% annualized, from the second quarter of 2019.
Net interest margin from continuing operations was 3.52% in the third quarter of 2019, an increase of 4 basis points from the third quarter of 2018 and a decrease of 9 basis points from the second quarter of 2019. The decrease in the third quarter of 2019 compared to the second quarter of 2019 was primarily the result of lower loan yields due to lower short term interest rates, partially offset by a drop in the cost of interest bearing deposits and an increase in noninterest bearing deposits.
The yield on loans from continuing operations in the third quarter of 2019 was 5.18%, an increase of 14 basis points from the third quarter of 2018 and a decrease of 16 basis points from the second quarter of 2019. The linked quarter decrease in loan yields was due primarily to the repricing of our variable rate loans as a result of declines in 1 month LIBOR.
The cost of deposits from continuing operations in the third quarter of 2019 was 1.06%, an increase of 30 basis points from the third quarter of 2018 and a decrease of 9 basis points from the second quarter of 2019. The cost of interest bearing deposits from continuing operations increased 42 basis points to 1.58% from the third quarter of 2018, and decreased 8 basis points from the second quarter of 2019. The linked quarter decrease in the cost of interest bearing deposits reflects the actions taken to reduce deposit costs resulting from the reductions in the fed funds target rate.
(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 14.
The provision for loan losses for continuing operations was $413,000 in the third quarter of 2019 compared to $845,000 in the third quarter of 2018 and $698,000 in the second quarter of 2019. Annualized net charge-offs were 0.11% of average loans in the third quarter of 2019 and 0.12% for the first nine months of 2019.
Noninterest income from continuing operations totaled $2.8 million in the third quarter of 2019 compared to $2.3 million in the third quarter of 2018, and increase of $514,000, or 23%, and $2.9 million in the second quarter of 2019, a decrease of $172,000, or 6%. The third quarter of 2019 included a gain of $253,000 on the sale investment securities compared to a gain of $654,000 in the second quarter of 2019. The third quarter of 2019 also included a gain of $140,000 on the sale of other assets and a loss of $293,000 in derivative income due to the credit valuation adjustment on the customer swap portfolio.
Noninterest expense from continuing operations totaled $12.7 million in the third quarter of 2019, an increase of $805,000, or 7%, compared to the third quarter of 2018, and a decrease of $577,000, or 4% compared to the second quarter of 2019. The FDIC premium expense in the third quarter of 2019 decreased $368,000 compared to the second quarter of 2019 due to an FDIC assessment credit received. Salaries and employee benefits expense decreased $234,000, to $8.3 million in the third quarter of 2019 compared to the second quarter of 2019, partly as a result of lower benefits cost.
The overall effective tax rate from continuing operations was 21.7% for the third quarter of 2019 and 21.3% for the first nine months of 2019.
Balance Sheet
Total loans held for investment were $1.84 billion at September 30, 2019, an increase of $173.2 million, or 10.4%, from September 30, 2018 and an increase of $45.9 million, or 10.3% annualized, from June 30, 2019.
At September 30, 2019, the allowance for loan losses was $18.1 million, or 0.98% of loans held for investment compared to 1.00% at September 30, 2018 and 1.02% at June 30, 2019. Non-performing assets from continuing operations totaled $7.0 million, or 0.29% of total assets, as of September 30, 2019, compared to 0.11% of total assets as of September 30, 2018 and 0.31% of total assets as of June 30, 2019.
Total average deposits from continuing operations were $1.95 billion for the third quarter of 2019, an increase of $297.0 million, or 18.0%, from the third quarter of 2018 and an increase of $47.6 million, or 10.0% annualized, from the second quarter of 2019. Noninterest bearing deposits were 32.7% of total average deposits from continuing operations in the third quarter of 2019, compared to 34.0% in the third quarter of 2018 and 30.9% in the second quarter of 2019.
Tangible common equity to tangible assets was 12.9% at September 30, 2019 compared to 10.4% at September 30, 2018 and 13.4% at June 30, 2019. The total risk based capital ratio was estimated at 15.5% at September 30, 2019 compared to 14.7% at September 30, 2018 and 16.5% at June 30, 2019.
Earnings Conference Call
The Company will host a conference call at 9:00 a.m. EST on Friday, October 25, 2019, to discuss the financial results for the quarter ended September 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
For the nine months ended | |||||||||||||||||||||||||
2019 | 2018 | September 30, | |||||||||||||||||||||||
Third | Second | First | Fourth | Third | |||||||||||||||||||||
(in thousands, except share and per share data; taxable equivalent) | Quarter | Quarter | Quarter | Quarter | Quarter | 2019 | 2018 | ||||||||||||||||||
INCOME SUMMARY (1) | |||||||||||||||||||||||||
Interest income (2) | $ | 26,624 | $ | 26,686 | $ | 26,297 | $ | 26,725 | $ | 24,114 | $ | 79,607 | $ | 68,430 | |||||||||||
Interest expense | 6,536 | 6,709 | 5,773 | 5,560 | 4,720 | 19,018 | 12,953 | ||||||||||||||||||
Net interest income | 20,088 | 19,977 | 20,524 | 21,165 | 19,394 | 60,589 | 55,477 | ||||||||||||||||||
Provision for loan losses | 413 | 698 | 814 | 502 | 845 | 1,925 | 1,444 | ||||||||||||||||||
Net interest income after provision for loan losses | 19,675 | 19,279 | 19,710 | 20,663 | 18,549 | 58,664 | 54,033 | ||||||||||||||||||
Noninterest income | 2,769 | 2,941 | 2,336 | 164 | 2,255 | 8,046 | 9,883 | ||||||||||||||||||
Noninterest expense | 12,677 | 13,254 | 13,795 | 12,208 | 11,872 | 39,726 | 37,783 | ||||||||||||||||||
Income from continuing operations before income taxes | 9,767 | 8,966 | 8,251 | 8,619 | 8,932 | 26,984 | 26,133 | ||||||||||||||||||
Income tax expense | 2,198 | 1,957 | 1,811 | 1,136 | 1,934 | 5,966 | 5,566 | ||||||||||||||||||
Net income from continuing operations | 7,569 | 7,009 | 6,440 | 7,483 | 6,998 | 21,018 | 20,567 | ||||||||||||||||||
Income (loss) from discontinued operations, net of tax | 617 | 22,143 | (1,063 | ) | 1,347 | (485 | ) | 21,697 | (865 | ) | |||||||||||||||
Net income | $ | 8,186 | $ | 29,152 | $ | 5,377 | $ | 8,830 | $ | 6,513 | $ | 42,715 | $ | 19,702 | |||||||||||
PER SHARE DATA | |||||||||||||||||||||||||
Diluted earnings per share - continuing operations | $ | 0.33 | $ | 0.29 | $ | 0.26 | $ | 0.29 | $ | 0.27 | $ | 0.88 | $ | 0.79 | |||||||||||
Diluted earnings (loss) per share - discontinued operations | 0.03 | 0.92 | (0.04 | ) | 0.05 | (0.02 | ) | 0.91 | (0.03 | ) | |||||||||||||||
Diluted earnings per share | 0.36 | 1.21 | 0.21 | 0.34 | 0.25 | 1.78 | 0.75 | ||||||||||||||||||
Book value per share | 14.81 | 14.46 | 13.10 | 12.80 | 12.27 | 14.81 | 12.27 | ||||||||||||||||||
Tangible book value per common share (3) | 13.91 | 13.60 | 12.17 | 11.88 | 11.37 | 13.91 | 11.37 | ||||||||||||||||||
PERFORMANCE MEASURES | |||||||||||||||||||||||||
Return on average equity | 9.77 | % | 34.38 | % | 6.80 | % | 10.90 | % | 8.07 | % | 17.25 | % | 8.41 | % | |||||||||||
Return on average assets | 1.32 | 4.79 | 0.77 | 1.21 | 0.92 | 2.22 | 0.96 | ||||||||||||||||||
Taxable equivalent net interest margin - continuing operations | 3.52 | 3.61 | 3.74 | 3.66 | 3.48 | 3.66 | 3.46 | ||||||||||||||||||
Efficiency ratio - continuing operations | 55.72 | 58.06 | 60.61 | 57.50 | 55.09 | 58.13 | 58.07 | ||||||||||||||||||
CAPITAL | |||||||||||||||||||||||||
Average equity to average assets | 13.54 | % | 13.94 | % | 11.34 | % | 11.11 | % | 11.41 | % | 12.87 | % | 11.42 | % | |||||||||||
Tangible common equity to tangible assets | 12.92 | 13.37 | 10.51 | 10.25 | 10.38 | 12.92 | 10.38 | ||||||||||||||||||
Tier 1 capital ratio | 12.5 | (4) | 13.4 | 11.0 | 11.5 | 11.8 | 12.5 | (4) | 11.8 | ||||||||||||||||
Total risk based capital ratio | 15.5 | (4) | 16.5 | 13.7 | 14.2 | 14.7 | 15.5 | (4) | 14.7 | ||||||||||||||||
Number of common shares outstanding - basic | 22,193,761 | 23,293,465 | 24,466,964 | 25,290,419 | 26,103,666 | 22,193,761 | 26,103,666 | ||||||||||||||||||
Number of common shares outstanding - diluted | 22,405,141 | 23,508,442 | 24,719,273 | 25,480,233 | 26,281,849 | 22,405,141 | 26,281,849 | ||||||||||||||||||
ASSET QUALITY | |||||||||||||||||||||||||
Allowance for loan losses to loans held for investment (5) | 0.98 | % | 1.02 | % | 1.04 | % | 1.03 | % | 1.00 | % | 0.98 | % | 1.00 | % | |||||||||||
Net charge-offs to average loans (6) | 0.11 | 0.14 | 0.11 | — | — | 0.12 | 0.02 | ||||||||||||||||||
Non-performing assets to total assets | 0.29 | 0.31 | 0.40 | 0.20 | 0.13 | 0.29 | 0.13 | ||||||||||||||||||
AVERAGE BALANCES | |||||||||||||||||||||||||
Total loans - continuing operations | $ | 1,801,629 | $ | 1,769,803 | $ | 1,707,682 | $ | 1,699,801 | $ | 1,583,563 | $ | 1,739,917 | $ | 1,553,609 | |||||||||||
Investment securities | 340,872 | 360,047 | 400,101 | 450,465 | 461,348 | 366,790 | 456,660 | ||||||||||||||||||
Total assets | 2,453,438 | 2,440,502 | 2,829,072 | 2,891,327 | 2,805,740 | 2,572,961 | 2,743,247 | ||||||||||||||||||
Deposits - continuing operations | 1,949,657 | 1,902,076 | 1,793,791 | 1,780,092 | 1,652,651 | 1,851,674 | 1,583,859 | ||||||||||||||||||
Shareholders' equity | 332,291 | 340,119 | 320,812 | 321,348 | 320,090 | 331,116 | 313,200 | ||||||||||||||||||
Number of common shares - basic | 22,681,904 | 23,888,381 | 24,855,171 | 25,919,445 | 26,103,397 | 23,800,525 | 25,956,336 | ||||||||||||||||||
Number of common shares - diluted | 22,837,531 | 24,040,806 | 25,019,384 | 26,043,799 | 26,254,772 | 23,957,915 | 26,134,655 | ||||||||||||||||||
(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 9/30/19. (5)The ratios for the first, second and third quarters of 2019 and third 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) | September 30, 2019 | June 30, 2019 | December 31, 2018 | |||||||
Cash | $ | — | $ | — | $ | 4,234 | ||||
Loans held for sale - discontinued operations | — | — | 373,030 | |||||||
Premises held for sale - discontinued operations | — | — | 7,722 | |||||||
Goodwill - discontinued operations | — | — | 4,555 | |||||||
Other assets | — | — | 1,405 | |||||||
Total assets | $ | — | $ | — | $ | 390,946 | ||||
Deposits to be assumed - discontinued operations | $ | — | $ | — | $ | 585,429 | ||||
Securities sold under agreements to repurchase - discontinued operations | — | — | 6,220 | |||||||
Total liabilities | $ | — | $ | — | $ | 591,649 | ||||
Net liabilities | $ | — | $ | — | $ | (200,703 | ) |
Components of Net Income (Loss) from Discontinued Operations
For the nine months ended | ||||||||||||||||||||||||||||
2019 | 2018 | September 30, | ||||||||||||||||||||||||||
Third | Second | First | Fourth | Third | ||||||||||||||||||||||||
(in thousands) | Quarter | Quarter | Quarter | Quarter | Quarter | 2019 | 2018 | |||||||||||||||||||||
Net interest income | $ | — | $ | (39 | ) | $ | 3,125 | $ | 3,225 | $ | 3,266 | $ | 3,086 | $ | 10,915 | |||||||||||||
Provision for loan losses | — | — | — | (3,097 | ) | — | — | — | ||||||||||||||||||||
Net interest income after provision | — | (39 | ) | 3,125 | 6,322 | 3,266 | 3,086 | 10,915 | ||||||||||||||||||||
Service charges | — | 46 | 481 | 483 | 474 | 527 | 1,439 | |||||||||||||||||||||
Mortgage income | — | — | 288 | 320 | 315 | 288 | 982 | |||||||||||||||||||||
Gain on sale of branches | — | 34,475 | — | — | — | 34,475 | — | |||||||||||||||||||||
Other income | — | (22 | ) | 21 | 47 | 22 | (1 | ) | 76 | |||||||||||||||||||
Total noninterest income | — | 34,499 | 790 | 850 | 811 | 35,289 | 2,497 | |||||||||||||||||||||
Salaries and employee benefits | — | 330 | 2,427 | 2,757 | 2,820 | 2,757 | 8,957 | |||||||||||||||||||||
Occupancy | — | 71 | 339 | 479 | 556 | 410 | 1,537 | |||||||||||||||||||||
Equipment and software | — | 8 | 123 | 158 | 217 | 131 | 621 | |||||||||||||||||||||
Amortization of intangibles | — | — | 247 | 271 | 296 | 247 | 958 | |||||||||||||||||||||
Communications and data processing | — | 197 | 389 | 440 | 381 | 586 | 1,089 | |||||||||||||||||||||
Divestiture expense | — | 3,646 | 1,449 | 825 | — | 5,095 | — | |||||||||||||||||||||
Other noninterest expense | — | 101 | 358 | 446 | 453 | 459 | 1,403 | |||||||||||||||||||||
Total noninterest expense | — | 4,353 | 5,332 | 5,376 | 4,723 | 9,685 | 14,565 | |||||||||||||||||||||
Net income (loss) before provision for income taxes | — | 30,107 | (1,417 | ) | 1,796 | (646 | ) | 28,690 | (1,153 | ) | ||||||||||||||||||
Provision (benefit) for income taxes | (617 | ) | 7,964 | (354 | ) | 449 | (161 | ) | 6,993 | (288 | ) | |||||||||||||||||
Net income (loss) from discontinued operations | $ | 617 | $ | 22,143 | $ | (1,063 | ) | $ | 1,347 | $ | (485 | ) | $ | 21,697 | $ | (865 | ) |
ATLANTIC CAPITAL BANCSHARES, INC.
Consolidated Balance Sheets (unaudited)
September 30, | June 30, | December 31, | September 30, | |||||||||||||
(in thousands, except share data) | 2019 | 2019 | 2018 | 2018 | ||||||||||||
ASSETS | ||||||||||||||||
Cash and due from banks | $ | 42,577 | $ | 24,206 | $ | 42,895 | $ | 28,007 | ||||||||
Interest-bearing deposits in banks | 27,167 | 52,932 | 216,040 | 140,682 | ||||||||||||
Other short-term investments | — | — | 9,457 | 20,898 | ||||||||||||
Cash and cash equivalents | 69,744 | 77,138 | 268,392 | 189,587 | ||||||||||||
Investment securities available for sale | 286,785 | 348,723 | 402,486 | 465,756 | ||||||||||||
Investment securities held to maturity | 42,863 | — | — | — | ||||||||||||
Other investments | 31,360 | 31,912 | 29,236 | 33,021 | ||||||||||||
Loans held for sale | 916 | — | 5,889 | 1,886 | ||||||||||||
Loans held for sale - discontinued operations(1) | — | — | 373,030 | 375,976 | ||||||||||||
Loans held for investment(1) | 1,835,673 | 1,789,740 | 1,728,073 | 1,662,458 | ||||||||||||
Less: allowance for loan losses(2) | (18,080 | ) | (18,186 | ) | (17,851 | ) | (20,443 | ) | ||||||||
Loans held for investment, net | 1,817,593 | 1,771,554 | 1,710,222 | 1,642,015 | ||||||||||||
Premises held for sale - discontinued operations(1) | — | — | 7,722 | 7,158 | ||||||||||||
Premises and equipment, net(1) | 19,688 | 20,037 | 9,779 | 10,213 | ||||||||||||
Bank owned life insurance | 66,047 | 65,874 | 65,149 | 64,769 | ||||||||||||
Goodwill - discontinued operations(1) | — | — | 4,555 | 4,555 | ||||||||||||
Goodwill - continuing operations(1) | 19,925 | 19,925 | 17,135 | 17,135 | ||||||||||||
Other intangibles, net | 3,112 | 3,095 | 4,388 | 4,867 | ||||||||||||
Other real estate owned | 278 | 971 | 874 | 968 | ||||||||||||
Other assets | 51,887 | 50,451 | 56,583 | 64,815 | ||||||||||||
Total assets | $ | 2,410,198 | $ | 2,389,680 | $ | 2,955,440 | $ | 2,882,721 | ||||||||
LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||||||||||||
Deposits: | ||||||||||||||||
Noninterest-bearing demand(1) | $ | 599,657 | $ | 569,693 | $ | 602,252 | $ | 518,155 | ||||||||
Interest-bearing checking(1) | 240,427 | 309,709 | 252,490 | 407,214 | ||||||||||||
Savings(1) | 1,081 | 1,090 | 725 | 698 | ||||||||||||
Money market(1) | 921,133 | 802,973 | 987,183 | 759,583 | ||||||||||||
Time(1) | 30,782 | 33,902 | 10,623 | 10,396 | ||||||||||||
Brokered deposits | 61,192 | 134,164 | 99,241 | 79,119 | ||||||||||||
Deposits to be assumed - discontinued operations(1) | — | — | 585,429 | 604,659 | ||||||||||||
Total deposits | 1,854,272 | 1,851,531 | 2,537,943 | 2,379,824 | ||||||||||||
Federal funds purchased | 57,000 | 35,000 | — | — | ||||||||||||
Securities sold under agreements to repurchase - discontinued operations(1) | — | — | 6,220 | 8,904 | ||||||||||||
Federal Home Loan Bank borrowings | 76,000 | 82,000 | — | 83,000 | ||||||||||||
Long-term debt | 49,831 | 49,789 | 49,704 | 49,662 | ||||||||||||
Other liabilities | 44,384 | 34,645 | 37,920 | 41,094 | ||||||||||||
Total liabilities | 2,081,487 | 2,052,965 | 2,631,787 | 2,562,484 | ||||||||||||
SHAREHOLDERS' EQUITY | ||||||||||||||||
Preferred stock, no par value; 10,000,000 shares authorized; no shares issued and outstanding as of September 30, 2019, June 30, 2019, December 31, 2018 and September 30, 2018 | — | — | — | — | ||||||||||||
Common stock, no par value; 100,000,000 shares authorized; 22,193,761, 23,293,465, 25,290,419, and 26,103,666 shares issued and outstanding as of September 30, 2019, June 30, 2019, December 31, 2018 and September 30, 2018; respectively | 237,687 | 256,791 | 291,771 | 305,300 | ||||||||||||
Retained earnings | 84,529 | 76,343 | 42,187 | 33,357 | ||||||||||||
Accumulated other comprehensive (loss) income | 6,495 | 3,581 | (10,305 | ) | (18,420 | ) | ||||||||||
Total shareholders' equity | 328,711 | 336,715 | 323,653 | 320,237 | ||||||||||||
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | $ | 2,410,198 | $ | 2,389,680 | $ | 2,955,440 | $ | 2,882,721 |
(1)Assets and liabilities related to the sale of Tennessee and northwest Georgia banking operations were classified as held for sale as of 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 | Nine months ended | ||||||||||||||||||||||||||
September 30, | June 30, | March 31, | December 31, | September 30, | September 30, | September 30, | ||||||||||||||||||||||
2019 | 2019 | 2019 | 2018 | 2018 | 2019 | 2018 | ||||||||||||||||||||||
INTEREST INCOME | ||||||||||||||||||||||||||||
Loans, including fees | $ | 23,541 | $ | 23,554 | $ | 22,752 | $ | 22,752 | $ | 20,117 | $ | 69,847 | $ | 57,358 | ||||||||||||||
Investment securities available-for-sale | 2,176 | 2,339 | 2,631 | 2,844 | 2,789 | 7,146 | 8,068 | |||||||||||||||||||||
Interest and dividends on other interest‑earning assets | 803 | 705 | 814 | 1,032 | 1,111 | 2,322 | 2,706 | |||||||||||||||||||||
Total interest income | 26,520 | 26,598 | 26,197 | 26,628 | 24,017 | 79,315 | 68,132 | |||||||||||||||||||||
INTEREST EXPENSE | ||||||||||||||||||||||||||||
Interest on deposits | 5,223 | 5,448 | 4,831 | 4,185 | 3,182 | 15,502 | 8,321 | |||||||||||||||||||||
Interest on Federal Home Loan Bank advances | 390 | 270 | — | 487 | 637 | 660 | 1,912 | |||||||||||||||||||||
Interest on federal funds purchased and securities sold under agreements to repurchase | 99 | 168 | 118 | 60 | 77 | 385 | 244 | |||||||||||||||||||||
Interest on long-term debt | 824 | 823 | 824 | 828 | 824 | 2,471 | 2,476 | |||||||||||||||||||||
Total interest expense | 6,536 | 6,709 | 5,773 | 5,560 | 4,720 | 19,018 | 12,953 | |||||||||||||||||||||
NET INTEREST INCOME BEFORE PROVISION FOR LOAN LOSSES | 19,984 | 19,889 | 20,424 | 21,068 | 19,297 | 60,297 | 55,179 | |||||||||||||||||||||
Provision for loan losses | 413 | 698 | 814 | 502 | 845 | 1,925 | 1,444 | |||||||||||||||||||||
NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES | 19,571 | 19,191 | 19,610 | 20,566 | 18,452 | 58,372 | 53,735 | |||||||||||||||||||||
NONINTEREST INCOME | ||||||||||||||||||||||||||||
Service charges | 925 | 870 | 794 | 876 | 804 | 2,589 | 2,339 | |||||||||||||||||||||
Gains (losses) on sale of securities | 253 | 654 | — | (1,853 | ) | — | 907 | (2 | ) | |||||||||||||||||||
Gains (losses) on sale of other assets | 140 | (10 | ) | (3 | ) | — | 58 | 127 | (154 | ) | ||||||||||||||||||
Trust income | — | — | — | — | — | — | 1,025 | |||||||||||||||||||||
Derivatives income | (293 | ) | (233 | ) | (111 | ) | 154 | 20 | (637 | ) | 154 | |||||||||||||||||
Bank owned life insurance | 422 | 389 | 360 | 380 | 379 | 1,171 | 1,126 | |||||||||||||||||||||
SBA lending activities | 1,150 | 1,096 | 1,086 | 425 | 882 | 3,332 | 3,181 | |||||||||||||||||||||
Gain on sale of trust company | — | — | — | — | — | — | 1,681 | |||||||||||||||||||||
Other noninterest income | 172 | 175 | 210 | 182 | 112 | 557 | 533 | |||||||||||||||||||||
Total noninterest income | 2,769 | 2,941 | 2,336 | 164 | 2,255 | 8,046 | 9,883 | |||||||||||||||||||||
NONINTEREST EXPENSE | ||||||||||||||||||||||||||||
Salaries and employee benefits | 8,295 | 8,529 | 9,213 | 7,573 | 7,332 | 26,037 | 24,193 | |||||||||||||||||||||
Occupancy | 722 | 689 | 639 | 655 | 732 | 2,050 | 2,317 | |||||||||||||||||||||
Equipment and software | 842 | 753 | 739 | 783 | 747 | 2,334 | 2,034 | |||||||||||||||||||||
Professional services | 764 | 792 | 775 | 947 | 796 | 2,331 | 2,564 | |||||||||||||||||||||
Postage, printing and supplies | 32 | 29 | 48 | 30 | 55 | 109 | 136 | |||||||||||||||||||||
Communications and data processing | 796 | 662 | 675 | 772 | 566 | 2,133 | 1,904 | |||||||||||||||||||||
Marketing and business development | 243 | 233 | 226 | 224 | 211 | 702 | 486 | |||||||||||||||||||||
FDIC premiums | (193 | ) | 175 | 235 | 157 | 154 | 217 | 405 | ||||||||||||||||||||
Other noninterest expense | 1,176 | 1,392 | 1,245 | 1,067 | 1,279 | 3,813 | 3,744 | |||||||||||||||||||||
Total noninterest expense | 12,677 | 13,254 | 13,795 | 12,208 | 11,872 | 39,726 | 37,783 | |||||||||||||||||||||
INCOME FROM CONTINUING OPERATIONS BEFORE PROVISION FOR INCOME TAXES | 9,663 | 8,878 | 8,151 | 8,522 | 8,835 | 26,692 | 25,835 | |||||||||||||||||||||
Provision for income taxes | 2,094 | 1,869 | 1,711 | 1,039 | 1,837 | 5,674 | 5,268 | |||||||||||||||||||||
NET INCOME FROM CONTINUING OPERATIONS | 7,569 | 7,009 | 6,440 | 7,483 | 6,998 | 21,018 | 20,567 | |||||||||||||||||||||
DISCONTINUED OPERATIONS | ||||||||||||||||||||||||||||
Income (loss) from discontinued operations | $ | — | $ | 30,107 | $ | (1,417 | ) | $ | 1,796 | $ | (646 | ) | $ | 28,690 | $ | (1,153 | ) | |||||||||||
Provision (benefit) for income taxes | (617 | ) | 7,964 | (354 | ) | 449 | (161 | ) | 6,993 | (288 | ) | |||||||||||||||||
Net income (loss) from discontinued operations | 617 | 22,143 | (1,063 | ) | 1,347 | (485 | ) | 21,697 | (865 | ) | ||||||||||||||||||
NET INCOME | $ | 8,186 | $ | 29,152 | $ | 5,377 | $ | 8,830 | $ | 6,513 | $ | 42,715 | $ | 19,702 | ||||||||||||||
Net Income (Loss) per Common Share - Basic | ||||||||||||||||||||||||||||
Net income per common share - continuing operations | $ | 0.33 | $ | 0.29 | $ | 0.26 | $ | 0.29 | $ | 0.27 | $ | 0.88 | $ | 0.79 | ||||||||||||||
Net income (loss) per common share - discontinued operations | 0.03 | 0.93 | (0.04 | ) | 0.05 | (0.02 | ) | 0.91 | (0.03 | ) | ||||||||||||||||||
Net Income per Common Share - Basic | 0.36 | 1.22 | 0.22 | 0.34 | 0.25 | 1.79 | 0.76 | |||||||||||||||||||||
Net Income (Loss) per Common Share - Diluted | ||||||||||||||||||||||||||||
Net income per common share - continuing operations | $ | 0.33 | $ | 0.29 | $ | 0.26 | $ | 0.29 | $ | 0.27 | $ | 0.88 | $ | 0.79 | ||||||||||||||
Net income (loss) per common share - discontinued operations | 0.03 | 0.92 | (0.04 | ) | 0.05 | (0.02 | ) | 0.91 | (0.03 | ) | ||||||||||||||||||
Net Income per Common Share - Diluted | 0.36 | 1.21 | 0.21 | 0.34 | 0.25 | 1.78 | 0.75 | |||||||||||||||||||||
Weighted average shares - basic | 22,681,904 | 23,888,381 | 24,855,171 | 25,919,445 | 26,103,397 | 23,800,525 | 25,956,336 | |||||||||||||||||||||
Weighted average shares - diluted | 22,837,531 | 24,040,806 | 25,019,384 | 26,043,799 | 26,254,772 | 23,957,915 | 26,134,655 |
(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 | |||||||||||||||||
September 30, 2019 | June 30, 2019 | ||||||||||||||||
Interest | Tax | Interest | Tax | ||||||||||||||
Average | Income/ | Equivalent | Average | Income/ | Equivalent | ||||||||||||
(dollars in thousands; taxable equivalent) | Balance | Expense | Yield/Rate | Balance | Expense | Yield/Rate | |||||||||||
Assets | |||||||||||||||||
Interest bearing deposits in other banks | $ | 103,954 | $ | 564 | 2.15 | % | $ | 70,628 | $ | 450 | 2.56 | % | |||||
Other short-term investments | — | — | — | 3,993 | 32 | 3.21 | |||||||||||
Investment securities: | |||||||||||||||||
Taxable investment securities | 257,005 | 1,657 | 2.56 | 280,639 | 1,848 | 2.64 | |||||||||||
Non-taxable investment securities(1) | 83,867 | 623 | 2.95 | 79,408 | 579 | 2.92 | |||||||||||
Total investment securities | 340,872 | 2,280 | 2.65 | 360,047 | 2,427 | 2.70 | |||||||||||
Loans - continuing operations | 1,801,629 | 23,541 | 5.18 | 1,769,803 | 23,554 | 5.34 | |||||||||||
FHLB and FRB stock | 15,524 | 239 | 6.11 | 14,435 | 223 | 6.20 | |||||||||||
Total interest-earning assets - continuing operations | 2,261,979 | 26,624 | 4.67 | 2,218,906 | 26,686 | 4.82 | |||||||||||
Loans held for sale - discontinued operations | — | — | — | 30,198 | 47 | 0.62 | |||||||||||
Total interest-earning assets | 2,261,979 | 26,624 | 4.67 | 2,249,104 | 26,733 | 4.77 | |||||||||||
Non-earning assets | 191,459 | 191,398 | |||||||||||||||
Total assets | $ | 2,453,438 | $ | 2,440,502 | |||||||||||||
Liabilities | |||||||||||||||||
Interest bearing deposits: | |||||||||||||||||
NOW, money market, and savings | 1,191,293 | 4,642 | 1.55 | 1,175,237 | 4,733 | 1.62 | |||||||||||
Time deposits | 32,409 | 51 | 0.62 | 32,358 | 50 | 0.62 | |||||||||||
Brokered deposits | 88,146 | 530 | 2.39 | 106,524 | 665 | 2.50 | |||||||||||
Total interest-bearing deposits | 1,311,848 | 5,223 | 1.58 | 1,314,119 | 5,448 | 1.66 | |||||||||||
Total borrowings | 85,478 | 489 | 2.27 | 70,770 | 438 | 2.48 | |||||||||||
Total long-term debt | 49,803 | 824 | 6.56 | 49,761 | 823 | 6.63 | |||||||||||
Total interest-bearing liabilities - continuing operations | 1,447,129 | 6,536 | 1.79 | 1,434,650 | 6,709 | 1.88 | |||||||||||
Interest-bearing liabilities - discontinued operations | — | — | — | 36,255 | 86 | 0.95 | |||||||||||
Total interest-bearing liabilities | 1,447,129 | 6,536 | 1.79 | 1,470,905 | 6,795 | 1.85 | |||||||||||
Demand deposits | 637,809 | 587,957 | |||||||||||||||
Demand deposits - discontinued operations | — | 9,851 | |||||||||||||||
Other liabilities | 36,209 | 31,670 | |||||||||||||||
Shareholders' equity | 332,291 | 340,119 | |||||||||||||||
Total liabilities and shareholders' equity | $ | 2,453,438 | $ | 2,440,502 | |||||||||||||
Net interest spread - continuing operations | 2.88 | % | 2.94 | % | |||||||||||||
Net interest income and net interest margin - continuing operations(2) | $ | 20,088 | 3.52 | % | $ | 19,977 | 3.61 | % | |||||||||
Net interest income and net interest margin(2) | $ | 20,088 | 3.52 | % | $ | 19,938 | 3.56 | % | |||||||||
Non-taxable equivalent net interest margin | 3.51 | % | 3.54 | % | |||||||||||||
(1) Interest revenue on tax-exempt securities has been increased to reflect comparable interest on taxable securities. The rate used was 21%, reflecting the statutory federal income tax rate.
(2) Tax equivalent net interest income divided by total interest-earning assets using the appropriate day count convention based on the type of interest-earning asset.
ATLANTIC CAPITAL BANCSHARES, INC.
Average Balance Sheets and Net Interest Margin Analysis
Selected Financial Information
Three months ended | |||||||||||||||||
September 30, 2019 | September 30, 2018 | ||||||||||||||||
Interest | Tax | Interest | Tax | ||||||||||||||
Average | Income/ | Equivalent | Average | Income/ | Equivalent | ||||||||||||
(dollars in thousands; taxable equivalent) | Balance | Expense | Yield/Rate | Balance | Expense | Yield/Rate | |||||||||||
Assets | |||||||||||||||||
Interest bearing deposits in other banks | $ | 103,954 | $ | 564 | 2.15 | % | $ | 128,248 | $ | 647 | 2.00 | % | |||||
Other short-term investments | — | — | — | 21,985 | 157 | 2.83 | |||||||||||
Investment securities: | |||||||||||||||||
Taxable investment securities | 257,005 | 1,657 | 2.56 | 385,834 | 2,315 | 2.38 | |||||||||||
Non-taxable investment securities(1) | 83,867 | 623 | 2.95 | 75,514 | 571 | 3.00 | |||||||||||
Total investment securities | 340,872 | 2,280 | 2.65 | 461,348 | 2,886 | 2.48 | |||||||||||
Loans - continuing operations | 1,801,629 | 23,541 | 5.18 | 1,583,459 | 20,117 | 5.04 | |||||||||||
FHLB and FRB stock | 15,524 | 239 | 6.11 | 17,624 | 307 | 6.91 | |||||||||||
Total interest-earning assets - continuing operations | 2,261,979 | 26,624 | 4.67 | 2,212,664 | 24,114 | 4.32 | |||||||||||
Loans held for sale - discontinued operations | — | — | — | 380,358 | 4,502 | 4.70 | |||||||||||
Total interest-earning assets | 2,261,979 | 26,624 | 4.67 | 2,593,022 | 28,616 | 4.38 | |||||||||||
Non-earning assets | 191,459 | 212,718 | |||||||||||||||
Total assets | $ | 2,453,438 | $ | 2,805,740 | |||||||||||||
Liabilities | |||||||||||||||||
Interest bearing deposits: | |||||||||||||||||
NOW, money market, and savings | 1,191,293 | 4,642 | 1.55 | 1,012,953 | 2,791 | 1.09 | |||||||||||
Time deposits | 32,409 | 51 | 0.62 | 10,406 | 30 | 1.14 | |||||||||||
Brokered deposits | 88,146 | 530 | 2.39 | 67,937 | 361 | 2.11 | |||||||||||
Total interest-bearing deposits | 1,311,848 | 5,223 | 1.58 | 1,091,296 | 3,182 | 1.16 | |||||||||||
Total borrowings | 85,478 | 489 | 2.27 | 134,609 | 714 | 2.10 | |||||||||||
Total long-term debt | 49,803 | 824 | 6.56 | 49,634 | 824 | 6.59 | |||||||||||
Total interest-bearing liabilities - continuing operations | 1,447,129 | 6,536 | 1.79 | 1,275,539 | 4,720 | 1.47 | |||||||||||
Interest-bearing liabilities - discontinued operations | — | — | — | 473,388 | 1,236 | 1.04 | |||||||||||
Total interest-bearing liabilities | 1,447,129 | 6,536 | 1.79 | 1,748,927 | 5,956 | 1.35 | |||||||||||
Demand deposits | 637,809 | 561,355 | |||||||||||||||
Demand deposits - discontinued operations | — | 136,572 | |||||||||||||||
Other liabilities | 36,209 | 38,796 | |||||||||||||||
Shareholders' equity | 332,291 | 320,090 | |||||||||||||||
Total liabilities and shareholders' equity | $ | 2,453,438 | $ | 2,805,740 | |||||||||||||
Net interest spread - continuing operations | 2.88 | % | 2.85 | % | |||||||||||||
Net interest income and net interest margin - continuing operations(2) | $ | 20,088 | 3.52 | % | $ | 19,394 | 3.48 | % | |||||||||
Net interest income and net interest margin(2) | $ | 20,088 | 3.52 | % | $ | 22,660 | 3.47 | % | |||||||||
Non-taxable equivalent net interest margin | 3.51 | % | 3.45 | % |
(1) Interest revenue on tax-exempt securities has been increased to reflect comparable interest on taxable securities. The rate used was 21%, reflecting the statutory federal income tax rate.
(2) Tax equivalent net interest income divided by total interest-earning assets using the appropriate day count convention based on the type of interest-earning asset.
ATLANTIC CAPITAL BANCSHARES, INC.
Average Balance Sheets and Net Interest Margin Analysis
Selected Financial Information
Nine months ended | |||||||||||||||||
September 30, 2019 | September 30, 2018 | ||||||||||||||||
Interest | Tax | Interest | Tax | ||||||||||||||
Average | Income/ | Equivalent | Average | Income/ | Equivalent | ||||||||||||
(dollars in thousands; taxable equivalent) | Balance | Expense | Yield/Rate | Balance | Expense | Yield/Rate | |||||||||||
Assets | |||||||||||||||||
Interest bearing deposits in other banks | $ | 88,960 | $ | 1,477 | 2.22 | % | $ | 101,502 | $ | 1,606 | 2.12 | % | |||||
Other short-term investments | 5,181 | 118 | 3.05 | 13,907 | 284 | 2.73 | |||||||||||
Investment securities: | |||||||||||||||||
Taxable investment securities | 284,978 | 5,619 | 2.64 | 380,002 | 6,643 | 2.34 | |||||||||||
Non-taxable investment securities(1) | 81,812 | 1,819 | 2.97 | 76,658 | 1,723 | 3.01 | |||||||||||
Total investment securities | 366,790 | 7,438 | 2.71 | 456,660 | 8,366 | 2.45 | |||||||||||
Loans - continuing operations | 1,739,917 | 69,847 | 5.37 | 1,553,609 | 57,358 | 4.94 | |||||||||||
FHLB and FRB stock | 14,173 | 727 | 6.86 | 18,291 | 816 | 5.96 | |||||||||||
Total interest-earning assets - continuing operations | 2,215,021 | 79,607 | 4.81 | 2,143,969 | 68,430 | 4.27 | |||||||||||
Loans held for sale - discontinued operations | 156,060 | 4,588 | 3.93 | 389,760 | 13,714 | 4.70 | |||||||||||
Total interest-earning assets | 2,371,081 | 84,195 | 4.75 | 2,533,729 | 82,144 | 4.33 | |||||||||||
Non-earning assets | 201,880 | 209,518 | |||||||||||||||
Total assets | $ | 2,572,961 | $ | 2,743,247 | |||||||||||||
Liabilities | |||||||||||||||||
Interest bearing deposits: | |||||||||||||||||
NOW, money market, and savings | 1,147,508 | 13,630 | 1.59 | 974,678 | 7,028 | 0.96 | |||||||||||
Time deposits | 18,246 | 139 | 1.02 | 10,075 | 82 | 1.09 | |||||||||||
Brokered deposits | 91,963 | 1,733 | 2.52 | 80,920 | 1,212 | 2.00 | |||||||||||
Total interest-bearing deposits | 1,257,717 | 15,502 | 1.65 | 1,065,673 | 8,322 | 1.04 | |||||||||||
Total borrowings | 57,844 | 1,045 | 2.42 | 155,701 | 2,155 | 1.85 | |||||||||||
Total long-term debt | 49,761 | 2,471 | 6.64 | 49,592 | 2,476 | 6.68 | |||||||||||
Total interest-bearing liabilities - continuing operations | 1,365,322 | 19,018 | 1.86 | 1,270,966 | 12,953 | 1.36 | |||||||||||
Interest-bearing liabilities - discontinued operations | 192,613 | 1,502 | 1.04 | 465,339 | 2,800 | 0.80 | |||||||||||
Total interest-bearing liabilities | 1,557,935 | 20,520 | 1.76 | 1,736,305 | 15,753 | 1.21 | |||||||||||
Demand deposits | 593,957 | 518,186 | |||||||||||||||
Demand deposits - discontinued operations | 52,481 | 138,621 | |||||||||||||||
Other liabilities | 37,472 | 36,935 | |||||||||||||||
Shareholders' equity | 331,116 | 313,200 | |||||||||||||||
Total liabilities and shareholders' equity | $ | 2,572,961 | $ | 2,743,247 | |||||||||||||
Net interest spread - continuing operations | 2.95 | % | 2.91 | % | |||||||||||||
Net interest income and net interest margin - continuing operations(2) | $ | 60,589 | 3.66 | % | $ | 55,477 | 3.46 | % | |||||||||
Net interest income and net interest margin(2) | $ | 63,675 | 3.59 | % | $ | 66,391 | 3.50 | % | |||||||||
Non-taxable equivalent net interest margin | 3.57 | % | 3.49 | % |
(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)
Linked | Year Over | |||||||||||||||||||||||||||
September 30, | June 30, | March 31, | December 31, | September 30, | Quarter | Year | ||||||||||||||||||||||
(dollars in thousands) | 2019 | 2019 | 2019 | 2018 | 2018 | Change | Change | |||||||||||||||||||||
Loans held for sale | ||||||||||||||||||||||||||||
Loans held for sale | $ | 916 | $ | — | $ | 1,530 | $ | 5,889 | $ | 1,886 | $ | 916 | $ | (970 | ) | |||||||||||||
Loans held for sale - discontinued operations | — | — | 384,779 | 373,030 | 375,976 | — | (375,976 | ) | ||||||||||||||||||||
Total loans held for sale | $ | 916 | $ | — | $ | 386,309 | $ | 378,919 | $ | 377,862 | $ | 916 | $ | (376,946 | ) | |||||||||||||
Loans held for investment | ||||||||||||||||||||||||||||
Commercial loans: | ||||||||||||||||||||||||||||
Commercial and industrial | $ | 697,412 | $ | 701,566 | $ | 679,489 | $ | 645,374 | $ | 581,737 | $ | (4,154 | ) | $ | 115,675 | |||||||||||||
Commercial real estate: | ||||||||||||||||||||||||||||
Multifamily | 60,398 | 43,907 | 43,929 | 88,826 | 108,001 | 16,491 | (47,603 | ) | ||||||||||||||||||||
Owner occupied | 352,842 | 313,310 | 304,945 | 298,291 | 295,801 | 39,532 | 57,041 | |||||||||||||||||||||
Investment | 452,285 | 409,629 | 394,087 | 407,711 | 409,145 | 42,656 | 43,140 | |||||||||||||||||||||
Construction and land: | ||||||||||||||||||||||||||||
1‑4 family residential construction | 5,186 | 3,696 | 2,067 | 1,006 | — | 1,490 | 5,186 | |||||||||||||||||||||
Other construction, development, and land | 139,991 | 195,260 | 171,818 | 155,226 | 147,114 | (55,269 | ) | (7,123 | ) | |||||||||||||||||||
Mortgage warehouse loans | 23,256 | 10,665 | 22,267 | 27,967 | 27,838 | 12,591 | (4,582 | ) | ||||||||||||||||||||
Total commercial loans | 1,731,370 | 1,678,033 | 1,618,602 | 1,624,401 | 1,569,636 | 53,337 | 161,734 | |||||||||||||||||||||
Residential: | ||||||||||||||||||||||||||||
Residential mortgages | 31,903 | 31,338 | 32,915 | 32,800 | 24,904 | 565 | 6,999 | |||||||||||||||||||||
Home equity | 25,638 | 24,303 | 23,171 | 22,822 | 33,410 | 1,335 | (7,772 | ) | ||||||||||||||||||||
Total residential loans | 57,541 | 55,641 | 56,086 | 55,622 | 58,314 | 1,900 | (773 | ) | ||||||||||||||||||||
Consumer | 27,168 | 34,618 | 35,203 | 25,851 | 26,825 | (7,450 | ) | 343 | ||||||||||||||||||||
Other | 22,533 | 24,126 | 26,663 | 24,712 | 10,579 | (1,593 | ) | 11,954 | ||||||||||||||||||||
1,838,612 | 1,792,418 | 1,736,554 | 1,730,586 | 1,665,354 | 46,194 | 173,258 | ||||||||||||||||||||||
Less net deferred fees and other unearned income | (2,939 | ) | (2,678 | ) | (1,997 | ) | (2,513 | ) | (2,896 | ) | (261 | ) | (43 | ) | ||||||||||||||
Total loans held for investment | $ | 1,835,673 | $ | 1,789,740 | $ | 1,734,557 | $ | 1,728,073 | $ | 1,662,458 | $ | 45,933 | $ | 173,215 | ||||||||||||||
Total loans | $ | 1,836,589 | $ | 1,789,740 | $ | 2,120,866 | $ | 2,106,992 | $ | 2,040,320 | $ | 46,849 | $ | (203,731 | ) |
(1) Loans held for sale-discontinued operations and loans held for investment have been adjusted retrospectively for all periods prior to December 31, 2018.
ATLANTIC CAPITAL BANCSHARES, INC.
Allowance for Loan Losses Activity and Credit Quality
2019 | 2018 | ||||||||||||||||||
Third | Second | First | Fourth | Third | |||||||||||||||
(dollars in thousands) | Quarter | Quarter | Quarter | Quarter | Quarter | ||||||||||||||
Balance at beginning of period | $ | 18,186 | $ | 18,107 | $ | 17,851 | $ | 20,443 | $ | 19,583 | |||||||||
Provision for loan losses | 413 | 698 | 814 | 595 | 758 | ||||||||||||||
Provision for loan losses (reversal of provision) - discontinued operations | — | — | — | (3,097 | ) | — | |||||||||||||
Provision for PCI loan losses | — | — | — | (93 | ) | 87 | |||||||||||||
Loans charged-off: | |||||||||||||||||||
Commercial and industrial | (541 | ) | (588 | ) | (549 | ) | — | — | |||||||||||
Commercial real estate | — | (47 | ) | — | — | — | |||||||||||||
Construction and land | — | — | — | — | — | ||||||||||||||
Residential mortgages | — | — | (9 | ) | (5 | ) | — | ||||||||||||
Home equity | — | — | — | — | — | ||||||||||||||
Consumer | (2 | ) | — | (37 | ) | (3 | ) | — | |||||||||||
Other | — | — | — | — | — | ||||||||||||||
Total loans charged-off | (543 | ) | (635 | ) | (595 | ) | (8 | ) | — | ||||||||||
Recoveries on loans previously charged-off: | |||||||||||||||||||
Commercial and industrial | 17 | — | 14 | — | — | ||||||||||||||
Commercial real estate | — | — | — | — | — | ||||||||||||||
Construction and land | 1 | — | 3 | — | — | ||||||||||||||
Residential mortgages | — | — | 7 | 4 | — | ||||||||||||||
Home equity | — | — | 1 | — | — | ||||||||||||||
Consumer | 6 | 16 | 12 | 7 | 15 | ||||||||||||||
Other | — | — | — | — | — | ||||||||||||||
Total recoveries | 24 | 16 | 37 | 11 | 15 | ||||||||||||||
Net charge-offs | $ | (519 | ) | $ | (619 | ) | $ | (558 | ) | $ | 3 | $ | 15 | ||||||
Balance at period end (1) | $ | 18,080 | $ | 18,186 | $ | 18,107 | $ | 17,851 | $ | 20,443 | |||||||||
Loans | |||||||||||||||||||
Loans held for sale | $ | 916 | $ | — | $ | 1,530 | $ | 5,889 | $ | 1,886 | |||||||||
Loans held for sale - discontinued operations | — | — | 384,779 | 373,030 | 375,976 | ||||||||||||||
Loans held for investment - continuing operations | 1,835,673 | 1,789,740 | 1,734,557 | 1,728,073 | 1,662,458 | ||||||||||||||
Total loans | $ | 1,836,589 | $ | 1,789,740 | $ | 2,120,866 | $ | 2,106,992 | $ | 2,040,320 | |||||||||
Non-performing loans - continuing operations (4) | $ | 6,770 | $ | 6,352 | $ | 8,830 | $ | 3,252 | $ | 2,160 | |||||||||
Non-performing loans - discontinued operations (4) | — | — | 1,506 | 1,924 | 556 | ||||||||||||||
Total non-performing loans | 6,770 | 6,352 | 10,336 | 5,176 | 2,716 | ||||||||||||||
Foreclosed properties (OREO) | 278 | 971 | 971 | 874 | 968 | ||||||||||||||
Total nonperforming assets | $ | 7,048 | $ | 7,323 | $ | 11,307 | $ | 6,050 | $ | 3,684 | |||||||||
Allowance for loan losses to loans held for investment (2) | 0.98 | % | 1.02 | % | 1.04 | 1.03 | % | 1.00 | |||||||||||
Net charge-offs to average loans (3) | 0.11 | 0.14 | 0.11 | — | — | ||||||||||||||
Non-performing loans as a percentage of total loans - continuing operations (4) | 0.37 | % | 0.35 | % | 0.51 | 0.19 | % | 0.13 | |||||||||||
Non-performing loans as a percentage of total loans - discontinued operations (4) | — | — | 0.39 | 0.52 | 0.15 | ||||||||||||||
Non-performing loans as a percentage of total loans (4) | 0.37 | 0.35 | 0.49 | 0.25 | 0.13 | ||||||||||||||
Non-performing assets as a percentage of total assets - continuing operations (4) | 0.29 | % | 0.31 | % | 0.34 | % | 0.14 | % | 0.11 | ||||||||||
Non-performing assets as a percentage of total assets - discontinued operations (4) | — | — | 0.05 | 0.07 | 0.02 | ||||||||||||||
Non-performing assets as a percentage of total assets (4) | 0.29 | 0.31 | 0.40 | 0.20 | 0.13 |
(1) The allowance for loan losses has not been adjusted retrospectively for periods prior to December 31, 2018. (2)The third quarter of 2019, the second quarter of 2019, the first quarter of 2019 and the fourth quarter of 2018 ratios are calculated on a continuing operations basis. Ratios prior to December 31, 2018 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
Linked | |||||||||||||||||||||||
September 30, | June 30, | March 31, | December 31, | September 30, | Quarter | Year Over | |||||||||||||||||
(dollars in thousands) | 2019 | 2019 | 2019 | 2018 | 2018 | Change | Year Change | ||||||||||||||||
DDA | $ | 599,657 | $ | 569,693 | $ | 561,829 | $ | 602,252 | $ | 518,155 | $ | 29,964 | $ | 81,502 | |||||||||
NOW | 240,427 | 309,709 | 233,838 | 252,490 | 407,214 | (69,282 | ) | (166,787 | ) | ||||||||||||||
Savings | 1,081 | 1,090 | 896 | 725 | 698 | (9 | ) | 383 | |||||||||||||||
Money market | 921,133 | 802,973 | 962,741 | 987,183 | 759,583 | 118,160 | 161,550 | ||||||||||||||||
Time | 30,782 | 33,902 | 22,069 | 10,623 | 10,396 | (3,120 | ) | 20,386 | |||||||||||||||
Brokered | 61,192 | 134,164 | 65,811 | 99,241 | 79,119 | (72,972 | ) | (17,927 | ) | ||||||||||||||
Total deposits - continuing operations | 1,854,272 | 1,851,531 | 1,847,184 | 1,952,514 | 1,775,165 | 2,741 | 79,107 | ||||||||||||||||
Deposits to be assumed - discontinued operations | — | — | 593,264 | 585,429 | 604,659 | — | (604,659 | ) | |||||||||||||||
Total deposits | $ | 1,854,272 | $ | 1,851,531 | $ | 2,440,448 | $ | 2,537,943 | $ | 2,379,824 | $ | 2,741 | $ | (525,552 | ) | ||||||||
Payments clients | $ | 286,373 | $ | 301,413 | $ | 361,192 | $ | 397,608 | $ | 258,320 | $ | (15,040 | ) | $ | 28,053 |
Average Deposits
2019 | 2018 | Linked | |||||||||||||||||||||
Third | Second | First | Fourth | Third | Quarter | Q3 2019 vs | |||||||||||||||||
(dollars in thousands) | Quarter | Quarter | Quarter | Quarter | Quarter | Change | Q3 2018 | ||||||||||||||||
DDA | $ | 637,809 | $ | 587,957 | $ | 575,453 | $ | 597,239 | $ | 561,355 | $ | 49,852 | $ | 76,454 | |||||||||
NOW | 295,106 | 314,601 | 276,212 | 280,449 | 314,759 | (19,495 | ) | (19,653 | ) | ||||||||||||||
Savings | 1,085 | 956 | 884 | 712 | 616 | 129 | 469 | ||||||||||||||||
Money market | 895,102 | 859,680 | 847,254 | 798,017 | 697,578 | 35,422 | 197,524 | ||||||||||||||||
Time | 32,409 | 32,358 | 12,847 | 10,117 | 10,406 | 51 | 22,003 | ||||||||||||||||
Brokered | 88,146 | 106,524 | 81,141 | 93,558 | 67,937 | (18,378 | ) | 20,209 | |||||||||||||||
Total deposits - continuing operations | 1,949,657 | 1,902,076 | 1,793,791 | 1,780,092 | 1,652,651 | 47,581 | 297,006 | ||||||||||||||||
Deposits to be assumed - discontinued operations | — | 45,350 | 593,313 | 600,769 | 601,421 | (45,350 | ) | (601,421 | ) | ||||||||||||||
Total deposits | $ | 1,949,657 | $ | 1,947,426 | $ | 2,387,104 | $ | 2,380,861 | $ | 2,254,072 | $ | 2,231 | $ | (304,415 | ) | ||||||||
Payments clients | $ | 289,526 | $ | 285,949 | $ | 295,059 | $ | 263,800 | $ | 227,029 | $ | 3,577 | $ | 62,497 | |||||||||
Noninterest bearing deposits as a percentage of average deposits - continuing operations | 32.7 | % | 30.9 | % | 32.1 | % | 33.6 | % | 34.0 | % | |||||||||||||
Cost of deposits - continuing operations | 1.06 | % | 1.15 | % | 1.09 | % | 0.93 | % | 0.76 | % |
ATLANTIC CAPITAL BANCSHARES, INC.
Non-GAAP Performance and Financial Measures Reconciliation
For the nine months | |||||||||||||||||||||||||||||
2019 | 2018 | ended September 30, | |||||||||||||||||||||||||||
Third | Second | First | Fourth | Third | |||||||||||||||||||||||||
(in thousands, except share and per share data) | Quarter | Quarter | Quarter | Quarter | Quarter | 2019 | 2018 | ||||||||||||||||||||||
Taxable equivalent interest income reconciliation | |||||||||||||||||||||||||||||
Interest income - GAAP | $ | 26,520 | $ | 26,598 | $ | 26,197 | $ | 26,628 | $ | 24,017 | $ | 79,315 | $ | 68,132 | |||||||||||||||
Taxable equivalent adjustment | 104 | 88 | 100 | 97 | 97 | 292 | 298 | ||||||||||||||||||||||
Interest income - taxable equivalent | $ | 26,624 | $ | 26,686 | $ | 26,297 | $ | 26,725 | $ | 24,114 | $ | 79,607 | $ | 68,430 | |||||||||||||||
Taxable equivalent net interest income reconciliation | |||||||||||||||||||||||||||||
Net interest income - GAAP | $ | 19,984 | $ | 19,889 | $ | 20,424 | $ | 21,068 | $ | 19,297 | $ | 60,297 | $ | 55,179 | |||||||||||||||
Taxable equivalent adjustment | 104 | 88 | 100 | 97 | 97 | 292 | 298 | ||||||||||||||||||||||
Net interest income - taxable equivalent | $ | 20,088 | $ | 19,977 | $ | 20,524 | $ | 21,165 | $ | 19,394 | $ | 60,589 | $ | 55,477 | |||||||||||||||
Taxable equivalent net interest margin reconciliation - continuing operations | |||||||||||||||||||||||||||||
Net interest margin - GAAP - continuing operations | 3.51 | % | 3.60 | % | 3.72 | % | 3.64 | % | 3.46 | % | 3.64 | % | 3.44 | % | |||||||||||||||
Impact of taxable equivalent adjustment | 0.01 | 0.01 | 0.02 | 0.02 | 0.02 | 0.02 | 0.02 | ||||||||||||||||||||||
Net interest margin - taxable equivalent - continuing operations | 3.52 | % | 3.61 | % | 3.74 | % | 3.66 | % | 3.48 | % | 3.66 | % | 3.46 | % | |||||||||||||||
Taxable equivalent net interest margin reconciliation | |||||||||||||||||||||||||||||
Net interest margin - GAAP | 3.51 | % | 3.54 | % | 3.66 | % | 3.60 | % | 3.45 | % | 3.57 | % | 3.49 | % | |||||||||||||||
Impact of taxable equivalent adjustment | 0.01 | 0.02 | 0.02 | 0.02 | 0.02 | 0.02 | 0.01 | ||||||||||||||||||||||
Net interest margin - taxable equivalent | 3.52 | % | 3.56 | % | 3.68 | % | 3.62 | % | 3.47 | % | 3.59 | % | 3.50 | % | |||||||||||||||
Income before income taxes reconciliation | |||||||||||||||||||||||||||||
Income before income taxes - GAAP | $ | 9,663 | $ | 8,878 | $ | 8,151 | $ | 8,522 | $ | 8,835 | $ | 26,692 | $ | 25,835 | |||||||||||||||
Taxable equivalent adjustment | 104 | 88 | 100 | 97 | 97 | 292 | 298 | ||||||||||||||||||||||
Income before income taxes | $ | 9,767 | $ | 8,966 | $ | 8,251 | $ | 8,619 | $ | 8,932 | $ | 26,984 | $ | 26,133 | |||||||||||||||
Income tax reconciliation | |||||||||||||||||||||||||||||
Income tax expense - GAAP | $ | 2,094 | $ | 1,869 | $ | 1,711 | $ | 1,039 | $ | 1,837 | $ | 5,674 | $ | 5,268 | |||||||||||||||
Taxable equivalent adjustment | 104 | 88 | 100 | 97 | 97 | 292 | 298 | ||||||||||||||||||||||
Income tax expense | $ | 2,198 | $ | 1,957 | $ | 1,811 | $ | 1,136 | $ | 1,934 | $ | 5,966 | $ | 5,566 | |||||||||||||||
Tangible book value per common share reconciliation | |||||||||||||||||||||||||||||
Total shareholders' equity | $ | 328,711 | $ | 336,715 | $ | 320,627 | $ | 323,653 | $ | 320,237 | $ | 328,711 | $ | 320,237 | |||||||||||||||
Intangible assets | (19,925 | ) | (19,925 | ) | (22,848 | ) | (23,095 | ) | (23,367 | ) | (19,925 | ) | (23,367 | ) | |||||||||||||||
Total tangible common equity | $ | 308,786 | $ | 316,790 | $ | 297,779 | $ | 300,558 | $ | 296,870 | $ | 308,786 | $ | 296,870 | |||||||||||||||
Common shares outstanding | 22,193,761 | 23,293,465 | 24,466,964 | 25,290,419 | 26,103,666 | 22,193,761 | 26,103,666 | ||||||||||||||||||||||
Book value per common share - GAAP | $ | 14.81 | $ | 14.46 | $ | 13.10 | $ | 12.80 | $ | 12.27 | $ | 14.81 | $ | 12.27 | |||||||||||||||
Tangible book value | 13.91 | 13.60 | 12.17 | 11.88 | 11.37 | 13.91 | 11.37 | ||||||||||||||||||||||
Tangible common equity to tangible assets reconciliation | |||||||||||||||||||||||||||||
Total shareholders' equity | $ | 328,711 | $ | 336,715 | $ | 320,627 | $ | 323,653 | $ | 320,237 | $ | 328,711 | $ | 320,237 | |||||||||||||||
Intangible assets | (19,925 | ) | (19,925 | ) | (22,848 | ) | (23,095 | ) | (23,367 | ) | (19,925 | ) | (23,367 | ) | |||||||||||||||
Total tangible common equity | $ | 308,786 | $ | 316,790 | $ | 297,779 | $ | 300,558 | $ | 296,870 | $ | 308,786 | $ | 296,870 | |||||||||||||||
Total assets | $ | 2,410,198 | $ | 2,389,680 | $ | 2,855,887 | $ | 2,955,440 | $ | 2,882,721 | $ | 2,410,198 | $ | 2,882,721 | |||||||||||||||
Intangible assets | (19,925 | ) | (19,925 | ) | (22,848 | ) | (23,095 | ) | (23,367 | ) | (19,925 | ) | (23,367 | ) | |||||||||||||||
Total tangible assets | $ | 2,390,273 | $ | 2,369,755 | $ | 2,833,039 | $ | 2,932,345 | $ | 2,859,354 | $ | 2,390,273 | $ | 2,859,354 | |||||||||||||||
Tangible common equity to tangible assets | 12.92 | % | 13.37 | % | 10.51 | % | 10.25 | % | 10.38 | % | 12.92 | % | 10.38 | % |
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