UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
_______________________________________________
FORM 8-K
_______________________________________________
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
April 23, 2020
(Date of earliest event reported)
Atlantic Capital Bancshares, Inc.
(Exact name of registrant as specified in its charter)
Georgia |
001-37615 |
20-5728270 |
(State or Other Jurisdiction
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(Commission File
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(I.R.S. Employer
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945 East Paces Ferry Rd. NE, Suite 1600
Atlanta, Georgia 30326
(Address of principal executive offices)
(Zip Code)
(404) 995-6050
(Registrant’s telephone number, including area code)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
[ ] Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
[ ] Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
[ ] Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
[ ] Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Securities registered pursuant to Section 12(b) of the Act
Title of each class |
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Trading Symbol(s) |
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Name of each exchange on which registered |
Common Stock, no par value |
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ACBI |
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The Nasdaq Stock Market LLC
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Indicate by check mark whether the registrant is an emerging growth company as defined in as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company [X]
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. [ ]
Item 2.02.Results of Operations and Financial Condition.
On April 23, 2020, Atlantic Capital Bancshares, Inc. (the “Company”) announced its financial results for the three months ended March 31, 2020. A copy of the press release issued in connection with the announcement is furnished as Exhibit 99.1 to this Form 8-K. Exhibit 99.1 shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities under that Section and shall not be deemed to be incorporated by reference into any filing of the Company under the Securities Act of 1933, as amended (the “Securities Act”), or the Exchange Act, except as expressly set forth by specific reference in such filing.
Item 7.01.Regulation FD Disclosure.
During the Company’s earnings conference call on April 24, 2020, members of management will be presenting certain information regarding the Company’s loan portfolio. A copy of the presentation slides is attached hereto as Exhibit 99.2 and is incorporated herein by reference. The information contained in this report and in the exhibit hereto is intended to be “furnished” and shall not be deemed to be “filed” for purposes of Section 18 of the Exchange Act, or otherwise subject to the liabilities under that Section and shall not be deemed to be incorporated by reference into any filing of the Company under the Securities Act or the Exchange Act.
Item 8.01.Other Events
The Company is supplementing the risk factors contained in Item 1A of the Company’s Annual Report on Form 10-K for the year ended December 31, 2019 (the “Annual Report”) filed with the Securities and Exchange Commission on March 16, 2020. The following risk factor should be read in conjunction with the risk factors set forth in the Annual Report.
The COVID-19 pandemic has adversely affected, and is likely to continue to adversely affect, our customers and other businesses in our market area, as well as counterparties and third party vendors. The resulting adverse impacts on our business, financial condition, liquidity and results of operations will likely be significant.
The COVID-19 pandemic has resulted in widespread economic and financial disruptions that have adversely affected, and are likely to continue to adversely effect, our customers and other businesses in our market area. The extent of the effect on our customers and market area, and the resulting impact on our business, financial condition, liquidity and results of operations, is unknown at this time, and will depend on a number of factors beyond our control, including:
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the duration and ultimate severity of the COVID-19 pandemic, and the timing of development and widespread availability of medical treatments or vaccines; |
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the response of governmental authorities, which have significantly curtailed business and individual activities; |
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the impact and continued availability of monetary, fiscal, and other economic policies and programs, such as the Paycheck Protection Program, designed to provide economic assistance to individuals and small businesses and otherwise mitigate the impact on businesses and individuals; and |
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continuing trends in unemployment and consumer confidence. |
Many of the risks described in Section IA – Risk Factors in our Annual Report on Form 10-K for the year ended December 19, 2019, and in any Quarterly Reports on Form 10-Q, will likely be exacerbated, and the impact of such risks will likely be magnified, as a result of the COVID-19 pandemic. The following discussion highlights areas where the negative impacts of the COVID-19 pandemic on our business, financial condition, liquidity and results of operations are expected to be most severe.
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Loan Credit Quality. Approximately 30% of our loan portfolio is comprised of commercial and industrial and commercial real estate loans to borrowers in the hotel, restaurant and retail industries. These industries have been more severely impacted by the COVID-19 pandemic and governmental responses, such as stay-at-home orders and social distancing requirements, than other industries, and may have a longer recovery period than other industries. Aside from the industries mentioned above, we have other borrowers whose ability to make loan payments is dependent on rental income from their tenants, some of whom are engaged in businesses significantly impacted by the COVID-19 pandemic. Deteriorating economic conditions are likely to result in an increase in tenants failing to make rental payments, and economic relief programs adopted in response to the COVID-19 pandemic may permit tenants to defer or reduce rent payments. As a result of actual or expected credit losses, we may downgrade loans, increase |
our allowance for loan losses as a result of increases in non-performing assets, and write-down or charge-off credit relationships, any of which will negatively impact our results of operations. In addition, market upheavals are likely to affect the value of real estate and commercial assets. In the event of foreclosure, it is unlikely that we will be able to sell the foreclosed property at a price that will allow us to recoup a significant portion of the delinquent loan. |
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Increased Demands on Capital and Liquidity. We have begun to experience increased volume of loan originations, particularly SBA loans pursuant to the Paycheck Protection Program created by recent legislation. Certain of these SBA loans have mandated interest rates that are lower than our usual rates and may not be purchased by the SBA or other third parties within expected timeframes. In addition, borrowers may draw on existing lines of credit or seek additional loans to finance their businesses. These factors may result in reduced levels of capital and liquidity being available to originate more profitable loans, which will negatively impact our ability to serve our existing customers and our ability to attract new customers. |
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Payment Processing Business. We have not experienced a material decline in payment processing to date; however, the COVID-19 pandemic’s effect on consumer behavior and business-to-business transactions could result in a decrease in transaction volume and a corresponding decrease in transaction fees, which would negatively impact our ability to generate non-interest income. In addition, we rely on third-party vendors and service providers in our payment processing business. If any of these parties are unable to perform their services as a result of direct or indirect impact of the COVID-19 pandemic, then we may not be able to continue providing certain services to our customers, or may incur unexpected costs related to engaging new or different vendors. As a result, we would likely experience a decrease in non-interest income in the short-term, and could experience in reputational damage in the longer term. |
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Deposit Business. As a result of the COVID-19 pandemic, deposit customers are expected to retain higher levels of cash. While increased low-interest deposits could have a positive impact in the short-term, we would not expect these funds to be replenished as customers use deposit funds for liquidity for their business and individual needs. If deposit levels decline, our available liquidity would decline, and we could be forced to obtain liquidity on terms less favorable than current deposit terms, which would in turn compress margins and negatively impact our results of operations. |
Even following medical resolution of the COVID-19 pandemic and the loosening of restrictions on business and individual activities, the U.S. economy may not recover quickly, and may experience a recession. Our business and operations would continue to be materially adversely affected by a slow economic recovery or a prolonged recession.
Item 9.01. Financial Statements and Exhibits.
(d) Exhibits
Exhibit No. Description
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
ATLANTIC CAPITAL BANCSHARES, INC.
Dated: April 23, 2020
By: /s/ Patrick T. Oakes
Name: Patrick T. Oakes
Title: Executive Vice President and
Chief Financial Officer
Exhibit 99.1
PRESS RELEASE
ATLANTIC CAPITAL BANCSHARES, INC. REPORTS FIRST QUARTER 2020 RESULTS
Atlanta, GA – April 23, 2020 – Atlantic Capital Bancshares, Inc. (NASDAQ: ACBI) announced net income from continuing operations for the quarter ended March 31, 2020 of $2.1 million, or $0.10 per diluted share, compared to $6.4 million, or $0.26 per diluted share, for the first quarter of 2019 and $7.1 million, or $0.32 per diluted share, for the fourth quarter of 2019. The decrease in net income was predominantly driven by increases in credit reserves in anticipation of the expected impact from the economic slowdown from COVID-19.
“Atlantic Capital entered the COVID-19 crisis in a position of strength with solid first quarter operating results, a fortress balance sheet, and sound business continuity plans. With that strength, our company will provide needed assistance to businesses in our community, add new client relationships, and strive to continue to build meaningful shareholder value through the crisis.” remarked Douglas Williams, President and Chief Executive Officer.
Response to COVID-19
As the COVID-19 pandemic affected all areas of economic and social life, Atlantic Capital responded with measures to protect the health of its community, customers and associates. The Company implemented work-from-home initiatives for employees when possible, ceased non-essential business related travel, and began regular meetings of its executive leadership and incident response teams to direct the Company’s response to the ever-changing environment. Each week, Doug Williams and his executive leadership team host an internal company-wide conference call to communicate the latest developments, answer teammate questions, and gather information from teammates based on the challenges their relationship customers are facing.
In addition, Atlantic Capital has taken the following steps to assist borrowers during these challenging times, consistent with sound banking practice:
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facilitating approximately $223 million in loan applications for business borrowers through the Paycheck Protection Program; |
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evaluating business segments in our market areas to evaluate areas of need and focus our assessment and management of portfolio risk; |
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offering payment deferrals to existing customers with a streamlined loan modification process when appropriate; |
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communicating with customers in order to assess developing credit situations and needs; and |
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engaging in liquidity planning, including pausing stock repurchases in March. |
Our goal is to continue to support our community of customers and prospective customers while maintaining our historically cautious approach to new loan underwriting. With reliable core deposit funding, solid balance sheet liquidity, a strong capital position, and access to significant wholesale funding, Atlantic Capital anticipates adequate funding capacity for future lending needs.
First Quarter Highlights(1)
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Capital ratios remained strong, with a tangible common equity to tangible assets ratio of 11.6%. |
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Tangible book value per share increased 19.5% from March 31, 2019 to $14.54, and increased 12.8% annualized from December 31, 2019. |
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Net interest margin from continuing operations of 3.41%, compared to 3.74% in the first quarter of 2019 and 3.38% in the fourth quarter of 2019. |
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Average deposits from continuing operations increased $460.7 million, or 25.7%, compared to the first quarter of 2019 and $107.9 million, or 20.1% annualized, compared to the fourth quarter of 2019. |
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Total loans held for investment increased $198.4 million, or 11.4% from March 31, 2019 and $59.4 million, or 12.7% annualized, from December 31, 2019. |
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Annualized net charge-offs to average loans totaled 0.04%, compared 0.11% in the first quarter of 2019 and 0.07% for the fourth quarter of 2019. |
Income Statement
Taxable equivalent net interest income from continuing operations totaled $21.2 million for the first quarter of 2020, an increase of $679,000, or 3.3%, from the first quarter of 2019, and an increase of $469,000, or 9.0% annualized, from the fourth quarter of 2019. The linked quarter increase in net interest income was primarily driven by a decrease in the cost of interest bearing liabilities offset by a decrease in loan yields.
Taxable equivalent net interest margin from continuing operations was 3.41% in the first quarter of 2020, a decrease of 33 basis points from the first quarter of 2019 and an increase of 3 basis points from the fourth quarter of 2019. The linked quarter increase was primarily the result of a drop in the cost of interest bearing deposits and an increase in the yield on investment securities. This was partially offset by a decrease in loan yields.
The yield on loans from continuing operations in the first quarter of 2020 was 4.77%, a decrease of 63 basis points from the first quarter of 2019 and a decrease of 18 basis points from the fourth quarter of 2019. The decrease in loan yields was due primarily to the repricing of variable rate loans as a result of declines in short term interest rates during 2019 and 2020.
The taxable equivalent yield on investment securities in the first quarter of 2020 was 2.84%, an increase of 7 basis points from the first quarter of 2019 and an increase of 21 basis points from the fourth quarter of 2019. The increase in taxable equivalent investment portfolio yields was primarily the result of municipal bond purchases in 2019 and 2020, many of which were non-taxable.
The cost of deposits from continuing operations in the first quarter of 2020 was 0.75%, a decrease of 34 basis points from the first quarter of 2019 and a decrease of 15 basis points from the fourth quarter of 2019. The cost of interest bearing deposits from continuing operations decreased 52 basis points to 1.09% from the first quarter of 2019, and decreased 27 basis points from the fourth quarter of 2019.
The provision for credit losses for continuing operations was $8.1 million in the first quarter of 2020 compared to $814,000 in the first quarter of 2019 and $787,000 in the fourth quarter of 2019. The provision for credit losses in the first quarter of 2020 included a $7.4 million provision for loan losses and a $671,000 provision for unfunded commitments. The provision increased primarily as a response to the expected impact from the economic slowdown from COVID-19.
Noninterest income from continuing operations totaled $2.4 million in the first quarter of 2020 compared to $2.3 million in the first quarter of 2019 and $2.7 million in the fourth quarter of 2019. Service charge income in the first quarter of 2020 totaled $1.2 million, an increase of $438,000 or 55.2%, compared to the first quarter of 2019 and an increase of $234,000, or 93.8% annualized, from the fourth quarter of 2019. Continued strong growth in core deposits, particularly in
(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.
our payments processing businesses, drove the increases in service charge income. SBA income totaled $414,000, a decrease from $1.1 million in the first quarter of 2019 and $846,000 in the fourth quarter of 2019, primarily from lower SBA origination volume and a decrease in loan premiums during the quarter.
Noninterest expense from continuing operations totaled $12.9 million in the first quarter of 2020, a decrease of $918,000 compared to the first quarter of 2019 and $505,000 compared to the fourth quarter of 2019. Salaries and employee benefits totaled $8.5 million in the first quarter of 2020, unchanged from the previous quarter as the higher first quarter benefits costs were offset by lower incentive accruals.
The effective tax rate from continuing operations for the first quarter of 2020 was 13.3% compared to 21.3% for the full year of 2019, and was impacted by lower pretax earnings as well as increased non-taxable securities income from municipal bonds.
Balance Sheet
Total loans held for investment were $1.93 billion at March 31, 2020, an increase of $198.4 million, or 11.4%, from March 31, 2019 and an increase of $59.4 million, or 12.7% annualized, from December 31, 2019. Commercial and industrial loans were $760.0 million at March 31, 2020, an increase of 11.9% from March 31, 2019 and 31.2% annualized from December 31, 2019. The increase from December 31, 2019 was primarily due to organic growth across different areas of the Company. Mortgage warehouse loan participations decreased to zero as we exited the business during the first quarter of 2020. Consumer loans increased $20.4 million from December 31, 2019 to $58.2 million at March 31, 2020, due to the growth in a partnership with a fintech firm that offers CD-secured loans to its customers.
On January 1, 2020, the Company adopted the CECL accounting standard, which resulted in a day one reduction of $854,000 to the allowance for loan losses offset by an increase of $1.3 million to the allowance for unfunded commitments. The allowance for loan losses totaled $18.5 million as of December 31, 2019, was reduced by $854,000 due to CECL adoption, was increased by $7.4 million related to the first quarter 2020 provision, and ended the quarter at $24.9 million. The allowance for unfunded commitments totaled $892,000 at December 31, 2019, was increased by $1.3 million due to CECL adoption, was increased by $671,000 related to the first quarter 2020 provision, and ended the quarter at $2.8 million. At March 31, 2020, the combined allowance for credit losses for loans and unfunded commitments was $27.7 million, compared to $19.4 million at December 31, 2019.
The allowance for loan losses was 1.29% of total loans held for investment at March 31, 2020, compared to 0.99% at December 31, 2019. The increase reflects the impact of COVID-19 on the economic forecast used in the estimation of expected credit losses. Non-performing assets from continuing operations totaled $7.3 million, or 0.27% of total assets, as of March 31, 2020, compared to 0.34% of total assets as of March 31, 2019 and 0.26% of total assets as of December 31, 2019.
Total average deposits from continuing operations were $2.25 billion for the first quarter of 2020, an increase of $460.7 million, or 25.7%, from the first quarter of 2019 and an increase of $107.9 million, or 20.1% annualized, from the fourth quarter of 2019. Noninterest bearing deposits were 31.6% of total average deposits from continuing operations in the first quarter of 2020, compared to 32.1% in the first quarter of 2019 and 33.5% in the fourth quarter of 2019.
Tangible common equity to tangible assets was 11.6% at March 31, 2020, an increase from 10.6% at December 31, 2019 due to the elevated levels of cash related to year-end deposits at December 31, 2019. The estimated total risk based capital ratio was 14.9% at March 31, 2020 compared to 13.7% at March 31, 2019 and 15.0% at December 31, 2019.
Earnings Conference Call
The Company will host a conference call at 9:30 a.m. EST on Friday, April 24, 2020, to discuss the financial results for the quarter ended March 31, 2020. Individuals wishing to participate in the conference call may do so by dialing 877-270-2148 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. A presentation will be used during the earnings conference call and is available at http://www.snl.com/IRW/CorporateProfile/4155740.
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,” “strive,” 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, the impact of COVID-19 on operations, market growth, market and regulatory trends and developments, acquisitions and divestitures, new technologies, services and opportunities and earnings. The forward-looking statements are based largely on Atlantic Capital’s expectations and are subject to a number of known and unknown risks and uncertainties that are subject to change based on factors which are, in many instances, beyond Atlantic Capital’s control. Atlantic Capital undertakes no obligation to publicly update any forward-looking statement to reflect developments occurring after the statement is made, except as otherwise required by law. Actual results, performance or achievements could differ materially from those contemplated, expressed, or implied by the forward-looking statements as a result of, among other factors, the risks and uncertainties described in “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in Atlantic Capital’s Annual Report on Form 10-K, as supplemented by our Current Report on Form 8-K filed on April 23, 2020, 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 $2.7 billion publicly traded bank holding company headquartered in Atlanta, Georgia. Atlantic Capital offers commercial and not-for-profit banking services, specialty corporate financial services, private banking services and commercial real estate finance solutions to privately held companies and individuals in the Atlanta area, as well as specialized financial services for select clients nationally.
Media Contact:
Ashley Carson
Email: ashley.carson@atlcapbank.com
Phone: 404-995-6050
Financial Contact:
Patrick Oakes
Email: patrick.oakes@atlcapbank.com
Phone: 404-995-6050
ATLANTIC CAPITAL BANCSHARES, INC.
Selected Financial Information
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2020 |
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2019 |
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(in thousands, except share and per share data; |
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First |
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Fourth |
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Third |
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Second |
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First |
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First Quarter 2020 |
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taxable equivalent) |
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Quarter |
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Quarter |
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Quarter |
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Quarter |
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Quarter |
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to 2019 Change |
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INCOME SUMMARY (1) |
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Interest income (2) |
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$ |
26,246 |
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$ |
26,699 |
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$ |
26,624 |
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$ |
26,686 |
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$ |
26,297 |
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(0) |
% |
Interest expense |
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5,043 |
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5,965 |
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6,536 |
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6,709 |
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5,773 |
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(13) |
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Net interest income |
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21,203 |
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20,734 |
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20,088 |
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19,977 |
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20,524 |
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3 |
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Provision for credit losses |
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8,074 |
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787 |
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413 |
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698 |
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814 |
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892 |
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Net interest income after provision for credit losses |
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13,129 |
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19,947 |
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19,675 |
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19,279 |
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19,710 |
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(33) |
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Noninterest income |
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2,422 |
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2,679 |
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2,769 |
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2,941 |
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2,336 |
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4 |
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Noninterest expense |
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12,877 |
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13,382 |
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12,677 |
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13,254 |
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13,795 |
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(7) |
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Income from continuing operations before income taxes |
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2,674 |
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9,244 |
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9,767 |
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8,966 |
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8,251 |
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(68) |
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Income tax expense |
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550 |
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2,104 |
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2,198 |
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1,957 |
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1,811 |
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(70) |
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Net income from continuing operations(2)(3) |
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2,124 |
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7,140 |
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7,569 |
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7,009 |
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6,440 |
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(67) |
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Income (loss) from discontinued operations, net of tax |
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— |
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— |
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617 |
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22,143 |
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(1,063) |
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(100) |
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Net income |
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$ |
2,124 |
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$ |
7,140 |
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$ |
8,186 |
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$ |
29,152 |
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$ |
5,377 |
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(60) |
% |
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PER SHARE DATA |
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Diluted earnings per share - continuing operations |
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$ |
0.10 |
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$ |
0.32 |
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$ |
0.33 |
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$ |
0.29 |
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$ |
0.26 |
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Diluted earnings (loss) per share - discontinued operations |
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— |
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— |
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0.03 |
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0.92 |
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(0.04) |
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Diluted earnings per share |
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0.10 |
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0.32 |
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0.36 |
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1.21 |
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0.21 |
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Book value per share |
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15.47 |
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15.01 |
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14.81 |
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14.46 |
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13.10 |
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Tangible book value per common share (3) |
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14.54 |
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14.09 |
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13.91 |
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13.60 |
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12.17 |
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PERFORMANCE MEASURES |
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Return on average equity |
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2.56 |
% |
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8.65 |
% |
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9.77 |
% |
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34.38 |
% |
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6.80 |
% |
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Return on average assets |
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0.32 |
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1.08 |
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1.32 |
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4.79 |
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0.77 |
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Taxable equivalent net interest margin - continuing operations |
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3.41 |
|
|
3.38 |
|
|
3.52 |
|
|
3.61 |
|
|
3.74 |
|
|
|
|
Efficiency ratio - continuing operations |
|
|
55.03 |
|
|
57.57 |
|
|
55.72 |
|
|
58.06 |
|
|
60.61 |
|
|
|
|
Average loans to average deposits |
|
|
83.84 |
|
|
86.54 |
|
|
92.41 |
|
|
93.05 |
|
|
95.20 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CAPITAL |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average equity to average assets |
|
|
12.41 |
% |
|
12.47 |
% |
|
13.54 |
% |
|
13.94 |
% |
|
11.34 |
% |
|
|
|
Tangible common equity to tangible assets |
|
|
11.57 |
|
|
10.61 |
|
|
12.92 |
|
|
13.37 |
|
|
10.51 |
|
|
|
|
Tier 1 capital ratio |
|
|
11.7 |
(4) |
|
12.0 |
|
|
12.5 |
|
|
13.4 |
|
|
11.0 |
|
|
|
|
Total risk based capital ratio |
|
|
14.9 |
(4) |
|
15.0 |
|
|
15.5 |
|
|
16.5 |
|
|
13.7 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SHARES OUTSTANDING |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Number of common shares outstanding - basic |
|
|
21,479,986 |
|
|
21,751,026 |
|
|
22,193,761 |
|
|
23,293,465 |
|
|
24,466,964 |
|
|
|
|
Number of common shares outstanding - diluted |
|
|
21,675,934 |
|
|
21,974,959 |
|
|
22,405,141 |
|
|
23,508,442 |
|
|
24,719,273 |
|
|
|
|
Average number of common shares - basic |
|
|
21,689,038 |
|
|
21,876,487 |
|
|
22,681,904 |
|
|
23,888,381 |
|
|
24,855,171 |
|
|
|
|
Average number of common shares - diluted |
|
|
21,842,175 |
|
|
22,053,907 |
|
|
22,837,531 |
|
|
24,040,806 |
|
|
25,019,384 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ASSET QUALITY |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Allowance for loan losses to loans held for investment (5) |
|
|
1.29 |
% |
|
0.99 |
% |
|
0.98 |
% |
|
1.02 |
% |
|
1.04 |
% |
|
|
|
Net charge-offs to average loans (6) |
|
|
0.04 |
|
|
0.07 |
|
|
0.11 |
|
|
0.14 |
|
|
0.11 |
|
|
|
|
Non-performing assets to total assets |
|
|
0.27 |
|
|
0.26 |
|
|
0.29 |
|
|
0.31 |
|
|
0.40 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
AVERAGE BALANCES |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total loans - continuing operations |
|
$ |
1,890,184 |
|
$ |
1,857,736 |
|
$ |
1,801,629 |
|
$ |
1,769,803 |
|
$ |
1,707,682 |
|
|
|
|
Investment securities |
|
|
417,971 |
|
|
389,667 |
|
|
340,872 |
|
|
360,047 |
|
|
400,101 |
|
|
|
|
Total assets |
|
|
2,686,266 |
|
|
2,626,388 |
|
|
2,453,438 |
|
|
2,440,502 |
|
|
2,829,072 |
|
|
|
|
Deposits - continuing operations |
|
|
2,254,505 |
|
|
2,146,626 |
|
|
1,949,657 |
|
|
1,902,076 |
|
|
1,793,791 |
|
|
|
|
Shareholders' equity |
|
|
333,480 |
|
|
327,543 |
|
|
332,291 |
|
|
340,119 |
|
|
320,812 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
AT PERIOD END |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans and loans held for sale |
|
$ |
1,932,909 |
|
$ |
1,873,524 |
|
$ |
1,836,589 |
|
$ |
1,789,740 |
|
$ |
2,120,866 |
|
|
|
|
Investment securities |
|
|
466,405 |
|
|
399,433 |
|
|
329,648 |
|
|
348,723 |
|
|
402,640 |
|
|
|
|
Total assets |
|
|
2,719,658 |
|
|
2,910,379 |
|
|
2,410,198 |
|
|
2,389,680 |
|
|
2,855,887 |
|
|
|
|
Deposits |
|
|
2,225,119 |
|
|
2,499,046 |
|
|
1,854,272 |
|
|
1,851,531 |
|
|
2,440,448 |
|
|
|
|
Shareholders’ equity |
|
|
332,300 |
|
|
326,495 |
|
|
328,711 |
|
|
336,715 |
|
|
320,627 |
|
|
|
|
(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.
(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 March 31, 2020.
(5)The ratios for the first, second, and third quarters of 2019 are calculated on a continuing operations basis.
(6)Annualized.
ATLANTIC CAPITAL BANCSHARES, INC.
Financial Information from Discontinued Operations
Assets and Liabilities from Discontinued Operations
|
|
|
|
|
|
|
|
|
|
(in thousands) |
|
March 31, 2020 |
|
December 31, 2019 |
|
March 31, 2019 |
|||
Cash |
|
$ |
— |
|
$ |
— |
|
$ |
4,168 |
Loans held for sale - discontinued operations |
|
|
— |
|
|
— |
|
|
384,779 |
Premises held for sale - discontinued operations |
|
|
— |
|
|
— |
|
|
7,736 |
Goodwill - discontinued operations |
|
|
— |
|
|
— |
|
|
4,555 |
Other assets |
|
|
— |
|
|
— |
|
|
1,158 |
Total assets |
|
$ |
— |
|
$ |
— |
|
$ |
402,396 |
|
|
|
|
|
|
|
|
|
|
Deposits to be assumed - discontinued operations |
|
$ |
— |
|
$ |
— |
|
$ |
593,264 |
Securities sold under agreements to repurchase - discontinued operations |
|
|
— |
|
|
— |
|
|
9,821 |
Total liabilities |
|
$ |
— |
|
$ |
— |
|
$ |
603,085 |
Net liabilities |
|
$ |
— |
|
$ |
— |
|
$ |
(200,689) |
Components of Net Income (Loss) from Discontinued Operations
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2020 |
|
2019 |
|||||||||||
|
|
First |
|
Fourth |
|
Third |
|
Second |
|
First |
|||||
(in thousands) |
|
Quarter |
|
Quarter |
|
Quarter |
|
Quarter |
|
Quarter |
|||||
Net interest income |
|
$ |
— |
|
$ |
— |
|
$ |
— |
|
$ |
(39) |
|
$ |
3,125 |
Provision for credit losses |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
Net interest income after provision |
|
|
— |
|
|
— |
|
|
— |
|
|
(39) |
|
|
3,125 |
Service charges |
|
|
— |
|
|
— |
|
|
— |
|
|
46 |
|
|
481 |
Mortgage income |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
288 |
Gain on sale of branches |
|
|
— |
|
|
— |
|
|
— |
|
|
34,475 |
|
|
— |
Other income |
|
|
— |
|
|
— |
|
|
— |
|
|
(22) |
|
|
21 |
Total noninterest income |
|
|
— |
|
|
— |
|
|
— |
|
|
34,499 |
|
|
790 |
Salaries and employee benefits |
|
|
— |
|
|
— |
|
|
— |
|
|
330 |
|
|
2,427 |
Occupancy |
|
|
— |
|
|
— |
|
|
— |
|
|
71 |
|
|
339 |
Equipment and software |
|
|
— |
|
|
— |
|
|
— |
|
|
8 |
|
|
123 |
Amortization of intangibles |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
247 |
Communications and data processing |
|
|
— |
|
|
— |
|
|
— |
|
|
197 |
|
|
389 |
Divestiture expense |
|
|
— |
|
|
— |
|
|
— |
|
|
3,646 |
|
|
1,449 |
Other noninterest expense |
|
|
— |
|
|
— |
|
|
— |
|
|
101 |
|
|
358 |
Total noninterest expense |
|
|
— |
|
|
— |
|
|
— |
|
|
4,353 |
|
|
5,332 |
Net income (loss) before provision for income taxes |
|
|
— |
|
|
— |
|
|
— |
|
|
30,107 |
|
|
(1,417) |
Provision (benefit) for income taxes |
|
|
— |
|
|
— |
|
|
(617) |
|
|
7,964 |
|
|
(354) |
Net income (loss) from discontinued operations |
|
$ |
— |
|
$ |
— |
|
$ |
617 |
|
$ |
22,143 |
|
$ |
(1,063) |
ATLANTIC CAPITAL BANCSHARES, INC.
Consolidated Balance Sheets (unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
March 31, |
|
December 31, |
|
March 31, |
|||
(in thousands, except share data) |
|
2020 |
|
2019 |
|
2019 |
|||
ASSETS |
|
|
|
|
|
|
|
|
|
Cash and due from banks |
|
$ |
27,536 |
|
$ |
45,249 |
|
$ |
36,992 |
Interest-bearing deposits in banks |
|
|
114,829 |
|
|
421,079 |
|
|
76,720 |
Other short-term investments |
|
|
— |
|
|
— |
|
|
29,457 |
Cash and cash equivalents |
|
|
142,365 |
|
|
466,328 |
|
|
143,169 |
Securities available for sale |
|
|
280,390 |
|
|
282,461 |
|
|
402,640 |
Securities held to maturity, net of allowance for credit losses of $14, $0 and $0 at March 31, 2020, December 31, 2019 and March 31, 2019, respectively (fair value of $189,940, $115,291 and $0 at March 31, 2020, December 31, 2019 and March 31, 2019, respectively) |
|
|
186,015 |
|
|
116,972 |
|
|
— |
Other investments |
|
|
27,140 |
|
|
27,556 |
|
|
28,844 |
Loans held for sale |
|
|
— |
|
|
370 |
|
|
1,530 |
Loans held for sale - discontinued operations(1) |
|
|
— |
|
|
— |
|
|
384,779 |
Loans held for investment(1) |
|
|
1,932,909 |
|
|
1,873,524 |
|
|
1,734,557 |
Less: allowance for loan losses |
|
|
(24,896) |
|
|
(18,535) |
|
|
(18,107) |
Loans held for investment, net |
|
|
1,908,013 |
|
|
1,854,989 |
|
|
1,716,450 |
Premises held for sale - discontinued operations(1) |
|
|
— |
|
|
— |
|
|
7,736 |
Premises and equipment, net(1) |
|
|
22,533 |
|
|
22,536 |
|
|
23,311 |
Bank owned life insurance |
|
|
66,761 |
|
|
66,421 |
|
|
65,486 |
Goodwill - discontinued operations(1) |
|
|
— |
|
|
— |
|
|
4,555 |
Goodwill - continuing operations(1) |
|
|
19,925 |
|
|
19,925 |
|
|
17,135 |
Other intangibles, net |
|
|
2,785 |
|
|
3,027 |
|
|
4,241 |
Other real estate owned |
|
|
779 |
|
|
278 |
|
|
971 |
Other assets |
|
|
62,952 |
|
|
49,516 |
|
|
55,040 |
Total assets |
|
$ |
2,719,658 |
|
$ |
2,910,379 |
|
$ |
2,855,887 |
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND SHAREHOLDERS’ EQUITY |
|
|
|
|
|
|
|
|
|
Deposits: |
|
|
|
|
|
|
|
|
|
Noninterest-bearing demand(1) |
|
$ |
712,919 |
|
$ |
824,646 |
|
$ |
561,829 |
Interest-bearing checking(1) |
|
|
368,463 |
|
|
373,727 |
|
|
233,838 |
Savings(1) |
|
|
567 |
|
|
1,219 |
|
|
896 |
Money market(1) |
|
|
982,109 |
|
|
1,173,218 |
|
|
962,741 |
Time(1) |
|
|
66,793 |
|
|
44,389 |
|
|
22,069 |
Brokered deposits |
|
|
94,268 |
|
|
81,847 |
|
|
65,811 |
Deposits to be assumed - discontinued operations(1) |
|
|
— |
|
|
— |
|
|
593,264 |
Total deposits |
|
|
2,225,119 |
|
|
2,499,046 |
|
|
2,440,448 |
Federal funds purchased |
|
|
75,000 |
|
|
— |
|
|
— |
Securities sold under agreements to repurchase - discontinued operations(1) |
|
|
— |
|
|
— |
|
|
9,821 |
Long-term debt |
|
|
49,916 |
|
|
49,873 |
|
|
49,746 |
Other liabilities |
|
|
37,323 |
|
|
34,965 |
|
|
35,245 |
Total liabilities |
|
|
2,387,358 |
|
|
2,583,884 |
|
|
2,535,260 |
|
|
|
|
|
|
|
|
|
|
SHAREHOLDERS’ EQUITY |
|
|
|
|
|
|
|
|
|
Preferred stock, no par value; 10,000,000 shares authorized; no shares issued and outstanding as of March 31, 2020, December 31, 2019, and March 31, 2019 |
|
|
— |
|
|
— |
|
|
— |
Common stock, no par value; 100,000,000 shares authorized; 21,479,986, 21,751,026, and 24,466,964 shares issued and outstanding as of March 31, 2020, December 31, 2019, and March 31, 2019; respectively |
|
|
224,233 |
|
|
230,265 |
|
|
276,346 |
Retained earnings |
|
|
93,721 |
|
|
91,669 |
|
|
47,191 |
Accumulated other comprehensive income (loss) |
|
|
14,346 |
|
|
4,561 |
|
|
(2,910) |
Total shareholders’ equity |
|
|
332,300 |
|
|
326,495 |
|
|
320,627 |
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY |
|
$ |
2,719,658 |
|
$ |
2,910,379 |
|
$ |
2,855,887 |
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.
ATLANTIC CAPITAL BANCSHARES, INC.
Consolidated Statements of Income (unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(in thousands, except share and per share data) |
|
Three months ended |
|||||||||||||
|
|
March 31, |
|
December 31, |
|
September 30, |
|
June 30, |
|
March 31, |
|||||
|
|
2020 |
|
2019 |
|
2019 |
|
2019 |
|
2019 |
|||||
INTEREST INCOME |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans, including fees |
|
$ |
22,426 |
|
$ |
23,175 |
|
$ |
23,541 |
|
$ |
23,554 |
|
$ |
22,752 |
Investment securities |
|
|
2,732 |
|
|
2,413 |
|
|
2,176 |
|
|
2,339 |
|
|
2,631 |
Interest and dividends on other interest‑earning assets |
|
|
865 |
|
|
944 |
|
|
803 |
|
|
705 |
|
|
814 |
Total interest income |
|
|
26,023 |
|
|
26,532 |
|
|
26,520 |
|
|
26,598 |
|
|
26,197 |
INTEREST EXPENSE |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest on deposits |
|
|
4,182 |
|
|
4,890 |
|
|
5,223 |
|
|
5,448 |
|
|
4,831 |
Interest on Federal Home Loan Bank advances |
|
|
— |
|
|
157 |
|
|
390 |
|
|
270 |
|
|
— |
Interest on federal funds purchased and securities sold under agreements to repurchase |
|
|
32 |
|
|
94 |
|
|
99 |
|
|
168 |
|
|
118 |
Interest on long-term debt |
|
|
829 |
|
|
824 |
|
|
824 |
|
|
823 |
|
|
824 |
Total interest expense |
|
|
5,043 |
|
|
5,965 |
|
|
6,536 |
|
|
6,709 |
|
|
5,773 |
NET INTEREST INCOME BEFORE PROVISION FOR CREDIT LOSSES |
|
|
20,980 |
|
|
20,567 |
|
|
19,984 |
|
|
19,889 |
|
|
20,424 |
Provision for credit losses |
|
|
8,074 |
|
|
787 |
|
|
413 |
|
|
698 |
|
|
814 |
NET INTEREST INCOME AFTER PROVISION FOR CREDIT LOSSES |
|
|
12,906 |
|
|
19,780 |
|
|
19,571 |
|
|
19,191 |
|
|
19,610 |
NONINTEREST INCOME |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Service charges |
|
|
1,232 |
|
|
998 |
|
|
925 |
|
|
870 |
|
|
794 |
Gains (losses) on sale of securities |
|
|
— |
|
|
— |
|
|
253 |
|
|
654 |
|
|
— |
Gains (losses) on sale of other assets |
|
|
5 |
|
|
— |
|
|
140 |
|
|
(10) |
|
|
(3) |
Derivatives income |
|
|
246 |
|
|
315 |
|
|
(293) |
|
|
(233) |
|
|
(111) |
Bank owned life insurance |
|
|
362 |
|
|
375 |
|
|
422 |
|
|
389 |
|
|
360 |
SBA lending activities |
|
|
414 |
|
|
846 |
|
|
1,150 |
|
|
1,096 |
|
|
1,086 |
Other noninterest income |
|
|
163 |
|
|
145 |
|
|
172 |
|
|
175 |
|
|
210 |
Total noninterest income |
|
|
2,422 |
|
|
2,679 |
|
|
2,769 |
|
|
2,941 |
|
|
2,336 |
NONINTEREST EXPENSE |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Salaries and employee benefits |
|
|
8,476 |
|
|
8,500 |
|
|
8,295 |
|
|
8,529 |
|
|
9,213 |
Occupancy |
|
|
794 |
|
|
838 |
|
|
722 |
|
|
689 |
|
|
639 |
Equipment and software |
|
|
779 |
|
|
769 |
|
|
842 |
|
|
753 |
|
|
739 |
Professional services |
|
|
705 |
|
|
577 |
|
|
764 |
|
|
792 |
|
|
775 |
Communications and data processing |
|
|
897 |
|
|
1,066 |
|
|
796 |
|
|
662 |
|
|
675 |
Marketing and business development |
|
|
153 |
|
|
143 |
|
|
243 |
|
|
233 |
|
|
226 |
Travel, meals and entertainment |
|
|
140 |
|
|
175 |
|
|
152 |
|
|
186 |
|
|
166 |
FDIC premiums |
|
|
— |
|
|
— |
|
|
(193) |
|
|
175 |
|
|
235 |
Other noninterest expense |
|
|
933 |
|
|
1,314 |
|
|
1,056 |
|
|
1,235 |
|
|
1,127 |
Total noninterest expense |
|
|
12,877 |
|
|
13,382 |
|
|
12,677 |
|
|
13,254 |
|
|
13,795 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
INCOME FROM CONTINUING OPERATIONS BEFORE PROVISION FOR INCOME TAXES |
|
|
2,451 |
|
|
9,077 |
|
|
9,663 |
|
|
8,878 |
|
|
8,151 |
Provision for income taxes |
|
|
327 |
|
|
1,937 |
|
|
2,094 |
|
|
1,869 |
|
|
1,711 |
NET INCOME FROM CONTINUING OPERATIONS |
|
|
2,124 |
|
|
7,140 |
|
|
7,569 |
|
|
7,009 |
|
|
6,440 |
DISCONTINUED OPERATIONS |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) from discontinued operations |
|
$ |
— |
|
$ |
— |
|
$ |
— |
|
$ |
30,107 |
|
$ |
(1,417) |
Provision (benefit) for income taxes |
|
|
— |
|
|
— |
|
|
(617) |
|
|
7,964 |
|
|
(354) |
Net income (loss) from discontinued operations |
|
|
— |
|
|
— |
|
|
617 |
|
|
22,143 |
|
|
(1,063) |
NET INCOME |
|
$ |
2,124 |
|
$ |
7,140 |
|
$ |
8,186 |
|
$ |
29,152 |
|
$ |
5,377 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Income (Loss) per Common Share - Basic |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income per common share - continuing operations |
|
$ |
0.10 |
|
$ |
0.33 |
|
$ |
0.33 |
|
$ |
0.29 |
|
$ |
0.26 |
Net income (loss) per common share - discontinued operations |
|
|
— |
|
|
— |
|
|
0.03 |
|
|
0.93 |
|
|
(0.04) |
Net Income per Common Share - Basic |
|
|
0.10 |
|
|
0.33 |
|
|
0.36 |
|
|
1.22 |
|
|
0.22 |
Net Income (Loss) per Common Share - Diluted |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income per common share - continuing operations |
|
$ |
0.10 |
|
$ |
0.32 |
|
$ |
0.33 |
|
$ |
0.29 |
|
$ |
0.26 |
Net income (loss) per common share - discontinued operations |
|
|
— |
|
|
— |
|
|
0.03 |
|
|
0.92 |
|
|
(0.04) |
Net Income per Common Share - Diluted |
|
|
0.10 |
|
|
0.32 |
|
|
0.36 |
|
|
1.21 |
|
|
0.21 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average shares - basic |
|
|
21,689,038 |
|
|
21,876,487 |
|
|
22,681,904 |
|
|
23,888,381 |
|
|
24,855,171 |
Weighted average shares - diluted |
|
|
21,842,175 |
|
|
22,053,907 |
|
|
22,837,531 |
|
|
24,040,806 |
|
|
25,019,384 |
ATLANTIC CAPITAL BANCSHARES, INC.
Average Balance Sheets and Net Interest Margin Analysis
Selected Financial Information
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended |
|
|||||||||||||||
|
|
March 31, 2020 |
|
|
December 31, 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 |
|
$ |
177,063 |
|
$ |
668 |
|
1.52 |
% |
|
$ |
174,589 |
|
$ |
733 |
|
1.67 |
% |
Other short-term investments |
|
|
110 |
|
|
— |
|
— |
|
|
|
— |
|
|
— |
|
— |
|
Investment securities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Taxable investment securities |
|
|
253,937 |
|
|
1,680 |
|
2.66 |
|
|
|
242,175 |
|
|
1,570 |
|
2.57 |
|
Non-taxable investment securities(1) |
|
|
164,034 |
|
|
1,275 |
|
3.13 |
|
|
|
147,492 |
|
|
1,010 |
|
2.72 |
|
Total investment securities |
|
|
417,971 |
|
|
2,955 |
|
2.84 |
|
|
|
389,667 |
|
|
2,580 |
|
2.63 |
|
Loans |
|
|
1,890,184 |
|
|
22,426 |
|
4.77 |
|
|
|
1,857,736 |
|
|
23,175 |
|
4.95 |
|
FHLB and FRB stock |
|
|
12,678 |
|
|
197 |
|
6.25 |
|
|
|
14,106 |
|
|
211 |
|
5.93 |
|
Total interest-earning assets |
|
|
2,498,006 |
|
|
26,246 |
|
4.23 |
|
|
|
2,436,098 |
|
|
26,699 |
|
4.35 |
|
Non-earning assets |
|
|
188,260 |
|
|
|
|
|
|
|
|
190,290 |
|
|
|
|
|
|
Total assets |
|
$ |
2,686,266 |
|
|
|
|
|
|
|
$ |
2,626,388 |
|
|
|
|
|
|
Liabilities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest bearing deposits: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NOW, money market, and savings |
|
|
1,393,541 |
|
|
3,767 |
|
1.09 |
|
|
|
1,328,184 |
|
|
4,525 |
|
1.35 |
|
Time deposits |
|
|
55,775 |
|
|
52 |
|
0.37 |
|
|
|
37,388 |
|
|
52 |
|
0.55 |
|
Brokered deposits |
|
|
92,188 |
|
|
363 |
|
1.58 |
|
|
|
62,757 |
|
|
313 |
|
1.98 |
|
Total interest-bearing deposits |
|
|
1,541,504 |
|
|
4,182 |
|
1.09 |
|
|
|
1,428,329 |
|
|
4,890 |
|
1.36 |
|
Total borrowings |
|
|
11,703 |
|
|
32 |
|
1.10 |
|
|
|
54,706 |
|
|
252 |
|
1.83 |
|
Total long-term debt |
|
|
49,888 |
|
|
829 |
|
6.68 |
|
|
|
49,845 |
|
|
823 |
|
6.55 |
|
Total interest-bearing liabilities |
|
|
1,603,095 |
|
|
5,043 |
|
1.27 |
|
|
|
1,532,880 |
|
|
5,965 |
|
1.54 |
|
Demand deposits |
|
|
713,001 |
|
|
|
|
|
|
|
|
718,297 |
|
|
|
|
|
|
Other liabilities |
|
|
36,690 |
|
|
|
|
|
|
|
|
47,668 |
|
|
|
|
|
|
Shareholders’ equity |
|
|
333,480 |
|
|
|
|
|
|
|
|
327,543 |
|
|
|
|
|
|
Total liabilities and shareholders’ equity |
|
$ |
2,686,266 |
|
|
|
|
|
|
|
$ |
2,626,388 |
|
|
|
|
|
|
Net interest spread |
|
|
|
|
|
|
|
2.96 |
% |
|
|
|
|
|
|
|
2.80 |
% |
Net interest income and net interest margin(2) |
|
|
|
|
$ |
21,203 |
|
3.41 |
% |
|
|
|
|
$ |
20,734 |
|
3.38 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-taxable equivalent net interest margin |
|
|
|
|
|
|
|
3.38 |
% |
|
|
|
|
|
|
|
3.35 |
% |
(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 |
|
|||||||||||||||
|
|
March 31, 2020 |
|
|
March 31, 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 |
|
$ |
177,063 |
|
$ |
668 |
|
1.52 |
% |
|
$ |
92,168 |
|
$ |
463 |
|
2.04 |
% |
Other short-term investments |
|
|
110 |
|
|
— |
|
— |
|
|
|
11,680 |
|
|
86 |
|
2.99 |
|
Investment securities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Taxable investment securities |
|
|
253,937 |
|
|
1,680 |
|
2.66 |
|
|
|
320,089 |
|
|
2,113 |
|
2.68 |
|
Non-taxable investment securities(1) |
|
|
164,034 |
|
|
1,275 |
|
3.13 |
|
|
|
80,012 |
|
|
618 |
|
3.13 |
|
Total investment securities |
|
|
417,971 |
|
|
2,955 |
|
2.84 |
|
|
|
400,101 |
|
|
2,731 |
|
2.77 |
|
Loans - continuing operations |
|
|
1,890,184 |
|
|
22,426 |
|
4.77 |
|
|
|
1,707,682 |
|
|
22,752 |
|
5.40 |
|
FHLB and FRB stock |
|
|
12,678 |
|
|
197 |
|
6.25 |
|
|
|
12,528 |
|
|
265 |
|
8.58 |
|
Total interest-earning assets - continuing operations |
|
|
2,498,006 |
|
|
26,246 |
|
4.23 |
|
|
|
2,224,159 |
|
|
26,297 |
|
4.80 |
|
Loans held for sale - discontinued operations |
|
|
— |
|
|
— |
|
— |
|
|
|
381,783 |
|
|
4,541 |
|
4.82 |
|
Total interest-earning assets |
|
|
2,498,006 |
|
|
26,246 |
|
4.23 |
|
|
|
2,605,942 |
|
|
30,838 |
|
4.80 |
|
Non-earning assets |
|
|
188,260 |
|
|
|
|
|
|
|
|
223,130 |
|
|
|
|
|
|
Total assets |
|
$ |
2,686,266 |
|
|
|
|
|
|
|
$ |
2,829,072 |
|
|
|
|
|
|
Liabilities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest bearing deposits: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NOW, money market, and savings |
|
|
1,393,541 |
|
|
3,767 |
|
1.09 |
|
|
|
1,124,350 |
|
|
4,255 |
|
1.53 |
|
Time deposits |
|
|
55,775 |
|
|
52 |
|
0.37 |
|
|
|
12,847 |
|
|
38 |
|
1.20 |
|
Brokered deposits |
|
|
92,188 |
|
|
363 |
|
1.58 |
|
|
|
81,141 |
|
|
538 |
|
2.69 |
|
Total interest-bearing deposits |
|
|
1,541,504 |
|
|
4,182 |
|
1.09 |
|
|
|
1,218,338 |
|
|
4,831 |
|
1.61 |
|
Total borrowings |
|
|
11,703 |
|
|
32 |
|
1.10 |
|
|
|
18,056 |
|
|
118 |
|
2.65 |
|
Total long-term debt |
|
|
49,888 |
|
|
829 |
|
6.68 |
|
|
|
49,719 |
|
|
824 |
|
6.72 |
|
Total interest-bearing liabilities - continuing operations |
|
|
1,603,095 |
|
|
5,043 |
|
1.27 |
|
|
|
1,286,113 |
|
|
5,773 |
|
1.82 |
|
Interest-bearing liabilities - discontinued operations |
|
|
— |
|
|
— |
|
— |
|
|
|
473,090 |
|
|
1,416 |
|
1.21 |
|
Total interest-bearing liabilities |
|
|
1,603,095 |
|
|
5,043 |
|
1.27 |
|
|
|
1,759,203 |
|
|
7,189 |
|
1.66 |
|
Demand deposits |
|
|
713,001 |
|
|
|
|
|
|
|
|
575,453 |
|
|
|
|
|
|
Demand deposits - discontinued operations |
|
|
— |
|
|
|
|
|
|
|
|
128,977 |
|
|
|
|
|
|
Other liabilities |
|
|
36,690 |
|
|
|
|
|
|
|
|
44,627 |
|
|
|
|
|
|
Shareholders’ equity |
|
|
333,480 |
|
|
|
|
|
|
|
|
320,812 |
|
|
|
|
|
|
Total liabilities and shareholders’ equity |
|
$ |
2,686,266 |
|
|
|
|
|
|
|
$ |
2,829,072 |
|
|
|
|
|
|
Net interest spread - continuing operations |
|
|
|
|
|
|
|
2.96 |
% |
|
|
|
|
|
|
|
2.98 |
% |
Net interest income and net interest margin - continuing operations(2) |
|
|
|
|
$ |
21,203 |
|
3.41 |
% |
|
|
|
|
$ |
20,524 |
|
3.74 |
% |
Net interest income and net interest margin(2) |
|
|
|
|
$ |
21,203 |
|
3.41 |
% |
|
|
|
|
$ |
23,649 |
|
3.68 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-taxable equivalent net interest margin |
|
|
|
|
|
|
|
3.38 |
% |
|
|
|
|
|
|
|
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.
Period End Loans
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Linked |
|
Year Over |
||||
|
|
March 31, |
|
December 31, |
|
September 30, |
|
June 30, |
|
March 31, |
|
Quarter |
|
Year |
|||||||
(dollars in thousands) |
|
2020 |
|
2019 |
|
2019 |
|
2019 |
|
2019 |
|
Change |
|
Change |
|||||||
Loans held for sale |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans held for sale |
|
$ |
— |
|
$ |
370 |
|
$ |
916 |
|
$ |
— |
|
$ |
1,530 |
|
$ |
(370) |
|
$ |
(1,530) |
Loans held for sale - discontinued operations |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
384,779 |
|
|
— |
|
|
(384,779) |
Total loans held for sale |
|
$ |
— |
|
$ |
370 |
|
$ |
916 |
|
$ |
— |
|
$ |
386,309 |
|
$ |
(370) |
|
$ |
(386,309) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans held for investment |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial loans: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial and industrial |
|
$ |
760,062 |
|
$ |
705,115 |
|
$ |
697,412 |
|
$ |
701,566 |
|
$ |
679,489 |
|
$ |
54,947 |
|
$ |
80,573 |
Commercial real estate: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Multifamily |
|
|
73,654 |
|
|
98,378 |
|
|
60,398 |
|
|
43,907 |
|
|
43,929 |
|
|
(24,724) |
|
|
29,725 |
Owner occupied |
|
|
359,026 |
|
|
357,912 |
|
|
352,842 |
|
|
313,310 |
|
|
304,945 |
|
|
1,114 |
|
|
54,081 |
Investment |
|
|
477,451 |
|
|
460,038 |
|
|
452,285 |
|
|
409,629 |
|
|
394,087 |
|
|
17,413 |
|
|
83,364 |
Construction and land: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1‑4 family residential construction |
|
|
2,706 |
|
|
4,009 |
|
|
5,186 |
|
|
3,696 |
|
|
2,067 |
|
|
(1,303) |
|
|
639 |
Other construction, development, and land |
|
|
124,116 |
|
|
123,531 |
|
|
139,991 |
|
|
195,260 |
|
|
171,818 |
|
|
585 |
|
|
(47,702) |
Mortgage warehouse loans |
|
|
— |
|
|
13,941 |
|
|
23,256 |
|
|
10,665 |
|
|
22,267 |
|
|
(13,941) |
|
|
(22,267) |
Total commercial loans |
|
|
1,797,015 |
|
|
1,762,924 |
|
|
1,731,370 |
|
|
1,678,033 |
|
|
1,618,602 |
|
|
34,091 |
|
|
178,413 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Residential: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Residential mortgages |
|
|
31,761 |
|
|
31,315 |
|
|
31,903 |
|
|
31,338 |
|
|
32,915 |
|
|
446 |
|
|
(1,154) |
Home equity |
|
|
23,479 |
|
|
25,002 |
|
|
25,638 |
|
|
24,303 |
|
|
23,171 |
|
|
(1,523) |
|
|
308 |
Total residential loans |
|
|
55,240 |
|
|
56,317 |
|
|
57,541 |
|
|
55,641 |
|
|
56,086 |
|
|
(1,077) |
|
|
(846) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consumer |
|
|
58,164 |
|
|
37,765 |
|
|
27,168 |
|
|
34,618 |
|
|
35,203 |
|
|
20,399 |
|
|
22,961 |
Other |
|
|
25,488 |
|
|
19,552 |
|
|
22,533 |
|
|
24,126 |
|
|
26,663 |
|
|
5,936 |
|
|
(1,175) |
|
|
|
1,935,907 |
|
|
1,876,558 |
|
|
1,838,612 |
|
|
1,792,418 |
|
|
1,736,554 |
|
|
59,349 |
|
|
199,353 |
Less net deferred fees and other unearned income |
|
|
(2,998) |
|
|
(3,034) |
|
|
(2,939) |
|
|
(2,678) |
|
|
(1,997) |
|
|
36 |
|
|
(1,001) |
Total loans held for investment |
|
$ |
1,932,909 |
|
$ |
1,873,524 |
|
$ |
1,835,673 |
|
$ |
1,789,740 |
|
$ |
1,734,557 |
|
$ |
59,385 |
|
$ |
198,352 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total loans |
|
$ |
1,932,909 |
|
$ |
1,873,894 |
|
$ |
1,836,589 |
|
$ |
1,789,740 |
|
$ |
2,120,866 |
|
$ |
59,015 |
|
$ |
(187,957) |
ATLANTIC CAPITAL BANCSHARES, INC.
Allowance for Credit Losses Activity and Credit Quality
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2020 |
|
2019 |
||||||||||||
|
|
First |
|
Fourth |
|
Third |
|
Second |
|
First |
||||||
(dollars in thousands) |
|
Quarter |
|
Quarter |
|
Quarter |
|
Quarter |
|
Quarter |
||||||
Allowance for loan losses |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance at beginning of period |
|
$ |
18,535 |
|
$ |
18,080 |
|
$ |
18,186 |
|
$ |
18,107 |
|
$ |
17,851 |
|
Adoption of ASU 2016-13 |
|
|
(854) |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
Provision for loan losses |
|
|
7,409 |
|
|
787 |
|
|
413 |
|
|
698 |
|
|
814 |
|
Loans charged-off: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial and industrial |
|
|
(18) |
|
|
(344) |
|
|
(541) |
|
|
(588) |
|
|
(549) |
|
Commercial real estate |
|
|
(78) |
|
|
— |
|
|
— |
|
|
(47) |
|
|
— |
|
Construction and land |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
Residential mortgages |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
(9) |
|
Home equity |
|
|
(125) |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
Consumer |
|
|
— |
|
|
— |
|
|
(2) |
|
|
— |
|
|
(37) |
|
Other |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
Total loans charged-off |
|
|
(221) |
|
|
(344) |
|
|
(543) |
|
|
(635) |
|
|
(595) |
|
Recoveries on loans previously charged-off: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial and industrial |
|
|
— |
|
|
5 |
|
|
17 |
|
|
— |
|
|
14 |
|
Commercial real estate |
|
|
18 |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
Construction and land |
|
|
— |
|
|
— |
|
|
1 |
|
|
— |
|
|
3 |
|
Residential mortgages |
|
|
1 |
|
|
7 |
|
|
— |
|
|
— |
|
|
7 |
|
Home equity |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
1 |
|
Consumer |
|
|
8 |
|
|
— |
|
|
6 |
|
|
16 |
|
|
12 |
|
Other |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
Total recoveries |
|
|
27 |
|
|
12 |
|
|
24 |
|
|
16 |
|
|
37 |
|
Net charge-offs |
|
$ |
(194) |
|
$ |
(332) |
|
$ |
(519) |
|
$ |
(619) |
|
$ |
(558) |
|
Balance at period end |
|
$ |
24,896 |
|
$ |
18,535 |
|
$ |
18,080 |
|
$ |
18,186 |
|
$ |
18,107 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Allowance for unfunded commitments |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance at beginning of period |
|
$ |
892 |
|
$ |
836 |
|
$ |
785 |
|
$ |
631 |
|
$ |
653 |
|
Adoption of ASU 2016-13 |
|
|
1,275 |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
Provision for unfunded commitments |
|
|
671 |
|
|
56 |
|
|
51 |
|
|
154 |
|
|
(22) |
|
Balance at period end |
|
$ |
2,838 |
|
$ |
892 |
|
$ |
836 |
|
$ |
785 |
|
$ |
631 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total allowance for credit losses - loans and unfunded commitments |
|
$ |
27,734 |
|
$ |
19,427 |
|
$ |
18,916 |
|
$ |
18,971 |
|
$ |
18,738 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Provision for credit losses under CECL |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Provision for loan losses |
|
|
7,409 |
|
|
787 |
|
|
413 |
|
|
698 |
|
|
814 |
|
Provision for securities held to maturity credit losses |
|
|
(6) |
|
|
- |
|
|
- |
|
|
- |
|
|
- |
|
Provision for unfunded commitments(1) |
|
|
671 |
|
|
- |
|
|
- |
|
|
- |
|
|
- |
|
Total provision for credit losses |
|
$ |
8,074 |
|
$ |
787 |
|
$ |
413 |
|
$ |
698 |
|
$ |
814 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-performing loans - continuing operations |
|
$ |
6,515 |
|
$ |
7,293 |
|
$ |
6,770 |
|
$ |
6,352 |
|
$ |
8,830 |
|
Non-performing loans - discontinued operations |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
1,506 |
|
Total nonperforming loans |
|
|
6,515 |
|
|
7,293 |
|
|
6,770 |
|
|
6,352 |
|
|
10,336 |
|
Foreclosed properties (OREO) |
|
|
779 |
|
|
278 |
|
|
278 |
|
|
971 |
|
|
971 |
|
Total nonperforming assets |
|
$ |
7,294 |
|
$ |
7,571 |
|
$ |
7,048 |
|
$ |
7,323 |
|
$ |
11,307 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Allowance for loan losses to loans held for investment (2) |
|
|
1.29 |
% |
|
0.99 |
% |
|
0.98 |
% |
|
1.02 |
% |
|
1.04 |
% |
Net charge-offs to average loans (3) |
|
|
0.04 |
|
|
0.07 |
|
|
0.11 |
|
|
0.14 |
|
|
0.11 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-performing loans as a percentage of total loans |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Continuing operations |
|
|
0.34 |
% |
|
0.39 |
% |
|
0.37 |
% |
|
0.35 |
% |
|
0.51 |
% |
Discontinued operations |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
0.39 |
|
Total |
|
|
0.34 |
|
|
0.39 |
|
|
0.37 |
|
|
0.35 |
|
|
0.49 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-performing assets as a percentage of total assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Continuing operations |
|
|
0.27 |
% |
|
0.26 |
% |
|
0.29 |
% |
|
0.31 |
% |
|
0.34 |
% |
Discontinued operations |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
0.05 |
|
Total |
|
|
0.27 |
|
|
0.26 |
|
|
0.29 |
|
|
0.31 |
|
|
0.40 |
|
(1) Prior to the adoption of ASU 2016-13, the provision for unfunded commitments was included in other expense and totaled $56, $51, $154 and ($22) for the fourth, third, second, and first quarters of
2019, respectively.
(2)The third, second, and first quarters of 2019 ratios are calculated on a continuing operations basis.
(3)Annualized.
ATLANTIC CAPITAL BANCSHARES, INC.
Period End Deposits
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Linked |
|
|
|
|
|
|
March 31, |
|
December 31, |
|
September 30, |
|
June 30, |
|
March 31, |
|
Quarter |
|
Year Over |
|||||||
(dollars in thousands) |
|
2020 |
|
2019 |
|
2019 |
|
2019 |
|
2019 |
|
Change |
|
Year Change |
|||||||
DDA |
|
$ |
712,919 |
|
$ |
824,646 |
|
$ |
599,657 |
|
$ |
569,693 |
|
$ |
561,829 |
|
$ |
(111,727) |
|
$ |
151,090 |
NOW |
|
|
368,463 |
|
|
373,727 |
|
|
240,427 |
|
|
309,709 |
|
|
233,838 |
|
|
(5,264) |
|
|
134,625 |
Savings |
|
|
567 |
|
|
1,219 |
|
|
1,081 |
|
|
1,090 |
|
|
896 |
|
|
(652) |
|
|
(329) |
Money market |
|
|
982,109 |
|
|
1,173,218 |
|
|
921,133 |
|
|
802,973 |
|
|
962,741 |
|
|
(191,109) |
|
|
19,368 |
Time |
|
|
66,793 |
|
|
44,389 |
|
|
30,782 |
|
|
33,902 |
|
|
22,069 |
|
|
22,404 |
|
|
44,724 |
Brokered |
|
|
94,268 |
|
|
81,847 |
|
|
61,192 |
|
|
134,164 |
|
|
65,811 |
|
|
12,421 |
|
|
28,457 |
Total deposits - continuing operations |
|
|
2,225,119 |
|
|
2,499,046 |
|
|
1,854,272 |
|
|
1,851,531 |
|
|
1,847,184 |
|
|
(273,927) |
|
|
377,935 |
Deposits to be assumed - discontinued operations |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
593,264 |
|
|
— |
|
|
(593,264) |
Total deposits |
|
$ |
2,225,119 |
|
$ |
2,499,046 |
|
$ |
1,854,272 |
|
$ |
1,851,531 |
|
$ |
2,440,448 |
|
$ |
(273,927) |
|
$ |
(215,329) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Payments clients |
|
$ |
483,585 |
|
$ |
567,597 |
|
$ |
286,373 |
|
$ |
301,413 |
|
$ |
361,192 |
|
$ |
(84,012) |
|
$ |
122,393 |
Average Deposits
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2020 |
|
2019 |
|
Linked |
|
|
|||||||||||||
|
|
First |
|
Fourth |
|
Third |
|
Second |
|
First |
|
Quarter |
|
Q1 2020 vs |
|||||||
(dollars in thousands) |
|
Quarter |
|
Quarter |
|
Quarter |
|
Quarter |
|
Quarter |
|
Change |
|
Q1 2019 |
|||||||
DDA |
|
$ |
713,001 |
|
$ |
718,298 |
|
$ |
637,809 |
|
$ |
587,957 |
|
$ |
575,453 |
|
$ |
(5,297) |
|
$ |
137,548 |
NOW |
|
|
382,178 |
|
|
320,637 |
|
|
295,106 |
|
|
314,601 |
|
|
276,212 |
|
|
61,541 |
|
|
105,966 |
Savings |
|
|
650 |
|
|
1,098 |
|
|
1,085 |
|
|
956 |
|
|
884 |
|
|
(448) |
|
|
(234) |
Money market |
|
|
1,010,713 |
|
|
1,006,449 |
|
|
895,102 |
|
|
859,680 |
|
|
847,254 |
|
|
4,264 |
|
|
163,459 |
Time |
|
|
55,775 |
|
|
37,388 |
|
|
32,409 |
|
|
32,358 |
|
|
12,847 |
|
|
18,387 |
|
|
42,928 |
Brokered |
|
|
92,188 |
|
|
62,757 |
|
|
88,146 |
|
|
106,524 |
|
|
81,141 |
|
|
29,431 |
|
|
11,047 |
Total deposits - continuing operations |
|
|
2,254,505 |
|
|
2,146,627 |
|
|
1,949,657 |
|
|
1,902,076 |
|
|
1,793,791 |
|
|
107,878 |
|
|
460,714 |
Deposits to be assumed - discontinued operations |
|
|
— |
|
|
— |
|
|
— |
|
|
45,350 |
|
|
593,313 |
|
|
— |
|
|
(593,313) |
Total deposits |
|
$ |
2,254,505 |
|
$ |
2,146,627 |
|
$ |
1,949,657 |
|
$ |
1,947,426 |
|
$ |
2,387,104 |
|
$ |
107,878 |
|
$ |
(132,599) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Payments clients |
|
$ |
419,630 |
|
$ |
362,327 |
|
$ |
289,526 |
|
$ |
285,949 |
|
$ |
295,059 |
|
$ |
57,303 |
|
$ |
124,571 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest bearing deposits as a percentage of average deposits - continuing operations |
|
|
31.6 |
% |
|
33.5 |
% |
|
32.7 |
% |
|
30.9 |
% |
|
32.1 |
% |
|
|
|
|
|
Cost of interest-bearing deposits - continuing operations |
|
|
1.09 |
% |
|
1.36 |
% |
|
1.58 |
% |
|
1.66 |
% |
|
1.61 |
% |
|
|
|
|
|
Cost of deposits - continuing operations |
|
|
0.75 |
% |
|
0.90 |
% |
|
1.06 |
% |
|
1.15 |
% |
|
1.09 |
% |
|
|
|
|
|
ATLANTIC CAPITAL BANCSHARES, INC.
Non-GAAP Performance and Financial Measures Reconciliation
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2020 |
|
2019 |
|
|||||||||||
|
|
First |
|
Fourth |
|
Third |
|
Second |
|
First |
|
|||||
(in thousands, except share and per share data) |
|
Quarter |
|
Quarter |
|
Quarter |
|
Quarter |
|
Quarter |
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Taxable equivalent interest income reconciliation |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest income - GAAP |
|
$ |
26,023 |
|
$ |
26,532 |
|
$ |
26,520 |
|
$ |
26,598 |
|
$ |
26,197 |
|
Taxable equivalent adjustment |
|
|
223 |
|
|
167 |
|
|
104 |
|
|
88 |
|
|
100 |
|
Interest income - taxable equivalent |
|
$ |
26,246 |
|
$ |
26,699 |
|
$ |
26,624 |
|
$ |
26,686 |
|
$ |
26,297 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Taxable equivalent net interest income reconciliation - continuing operations |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income - GAAP |
|
$ |
20,980 |
|
$ |
20,567 |
|
$ |
19,984 |
|
$ |
19,889 |
|
$ |
20,424 |
|
Taxable equivalent adjustment |
|
|
223 |
|
|
167 |
|
|
104 |
|
|
88 |
|
|
100 |
|
Net interest income - taxable equivalent - continuing operations |
|
$ |
21,203 |
|
$ |
20,734 |
|
$ |
20,088 |
|
$ |
19,977 |
|
$ |
20,524 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Taxable equivalent net interest margin reconciliation - continuing operations |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest margin - GAAP - continuing operations |
|
|
3.38 |
% |
|
3.35 |
% |
|
3.51 |
% |
|
3.60 |
% |
|
3.72 |
% |
Impact of taxable equivalent adjustment |
|
|
0.03 |
|
|
0.03 |
|
|
0.01 |
|
|
0.01 |
|
|
0.02 |
|
Net interest margin - taxable equivalent - continuing operations |
|
|
3.41 |
% |
|
3.38 |
% |
|
3.52 |
% |
|
3.61 |
% |
|
3.74 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Taxable equivalent net interest margin reconciliation |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest margin - GAAP |
|
|
3.38 |
% |
|
3.35 |
% |
|
3.51 |
% |
|
3.54 |
% |
|
3.66 |
% |
Impact of taxable equivalent adjustment |
|
|
0.03 |
|
|
0.03 |
|
|
0.01 |
|
|
0.02 |
|
|
0.02 |
|
Net interest margin - taxable equivalent |
|
|
3.41 |
% |
|
3.38 |
% |
|
3.52 |
% |
|
3.56 |
% |
|
3.68 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income before income taxes reconciliation |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income before income taxes - GAAP |
|
$ |
2,451 |
|
$ |
9,077 |
|
$ |
9,663 |
|
$ |
8,878 |
|
$ |
8,151 |
|
Taxable equivalent adjustment |
|
|
223 |
|
|
167 |
|
|
104 |
|
|
88 |
|
|
100 |
|
Income before income taxes |
|
$ |
2,674 |
|
$ |
9,244 |
|
$ |
9,767 |
|
$ |
8,966 |
|
$ |
8,251 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax reconciliation |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax expense - GAAP |
|
$ |
327 |
|
$ |
1,937 |
|
$ |
2,094 |
|
$ |
1,869 |
|
$ |
1,711 |
|
Taxable equivalent adjustment |
|
|
223 |
|
|
167 |
|
|
104 |
|
|
88 |
|
|
100 |
|
Income tax expense |
|
$ |
550 |
|
$ |
2,104 |
|
$ |
2,198 |
|
$ |
1,957 |
|
$ |
1,811 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tangible book value per common share reconciliation |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total shareholders’ equity |
|
$ |
332,300 |
|
$ |
326,495 |
|
$ |
328,711 |
|
$ |
336,715 |
|
$ |
320,627 |
|
Intangible assets |
|
|
(19,925) |
|
|
(19,925) |
|
|
(19,925) |
|
|
(19,925) |
|
|
(22,848) |
|
Total tangible common equity |
|
$ |
312,375 |
|
$ |
306,570 |
|
$ |
308,786 |
|
$ |
316,790 |
|
$ |
297,779 |
|
Common shares outstanding |
|
|
21,479,986 |
|
|
21,751,026 |
|
|
22,193,761 |
|
|
23,293,465 |
|
|
24,466,964 |
|
Book value per common share - GAAP |
|
$ |
15.47 |
|
$ |
15.01 |
|
$ |
14.81 |
|
$ |
14.46 |
|
$ |
13.10 |
|
Tangible book value |
|
|
14.54 |
|
|
14.09 |
|
|
13.91 |
|
|
13.60 |
|
|
12.17 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tangible common equity to tangible assets reconciliation |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total shareholders’ equity |
|
$ |
332,300 |
|
$ |
326,495 |
|
$ |
328,711 |
|
$ |
336,715 |
|
$ |
320,627 |
|
Intangible assets |
|
|
(19,925) |
|
|
(19,925) |
|
|
(19,925) |
|
|
(19,925) |
|
|
(22,848) |
|
Total tangible common equity |
|
$ |
312,375 |
|
$ |
306,570 |
|
$ |
308,786 |
|
$ |
316,790 |
|
$ |
297,779 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total assets |
|
$ |
2,719,658 |
|
$ |
2,910,379 |
|
$ |
2,410,198 |
|
$ |
2,389,680 |
|
$ |
2,855,887 |
|
Intangible assets |
|
|
(19,925) |
|
|
(19,925) |
|
|
(19,925) |
|
|
(19,925) |
|
|
(22,848) |
|
Total tangible assets |
|
$ |
2,699,733 |
|
$ |
2,890,454 |
|
$ |
2,390,273 |
|
$ |
2,369,755 |
|
$ |
2,833,039 |
|
Tangible common equity to tangible assets |
|
|
11.57 |
% |
|
10.61 |
% |
|
12.92 |
% |
|
13.37 |
% |
|
10.51 |
% |
Exhibit 99.2
|
Loan Disclosure Presentation March 31, 2020 atlanticcapitalbank.com NASDAQ TICKER: ACBI |
|
Forward-Looking Statements Disclaimer This presentation 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, the impact of COVID-19 on operations, market growth, market and regulatory trends and developments, acquisitions and divestitures, new technologies, services and opportunities and earnings. The forward-looking statements are based largely on Atlantic Capital’s expectations and are subject to a number of known and unknown risks and uncertainties that are subject to change based on factors which are, in many instances, beyond Atlantic Capital’s control. Atlantic Capital undertakes no obligation to publicly update any forward-looking statement to reflect developments occurring after the statement is made, except as otherwise required by law. Actual results, performance or achievements could differ materially from those contemplated, expressed, or implied by the forward-looking statements as a result of, among other factors, the risks and uncertainties described in “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in Atlantic Capital’s Annual Report on Form 10-K, as supplemented by our Current Report on Form 8-K filed on April 23, 2020, and Quarterly Reports on Form 10-Q. Please refer to the SEC’s website at www.sec.gov where you can review those documents. 2 |
|
atlanticcapitalbank.com Credit Overview • Credit quality remained strong in the first quarter • Annualized net charge-offs to average loans totaled 0.04% • Non-performing assets totaled 0.27% of total assets • Allowance for loan losses was 1.29% of total loans compared to 0.99% at December 31, 2019 • Included a reduction of $854,000 due to CECL adoption on January 1, 2020 • First quarter provision for loan losses totaled $7.4 million • Borrower assistance • Paycheck Protection Program – 606 loans totaling $223 million approved in initial phase • Payment Deferrals - 311 loans totaling $389 million of outstandings (20% of total loans) under 90 day deferral • CARES Act Subsidy - SBA will make next 6 payments for approximately $125 million in existing SBA outstandings • Closely monitoring Hotel, Restaurant and Retail portfolios • Historically targeted strategies in each focusing on specific loan types and top tier borrowers/concepts • 39% of hotel outstandings are SBA guaranteed or SBA 504 loans • 87% of restaurant outstandings are in Franchise Finance, primarily split between Dunkin’ and other QSRs • 63% of retail outstandings are in industries determined to be essential businesses by most states • Cautiously considering any new loan exposure outside PPP across industries 3 |
|
atlanticcapitalbank.com Summary of Loan Portfolio Borrowers by State 2 Total Bank Loans Top 10 Commercial Industry Concentrations 1 CRE Concentrations by Property Type GA $1,230MM, 65% FL $118MM, 6% TN $91MM, 5% CA $82MM, 4% NC $35MM, 2% Other $336MM, 18% (GA 80% if exclude SBA, Franchise, TriNet) Retail $160MM, 23% Hotel $113 MM, $16% Office $111MM, 16% Multi-family $96MM, 14% Industrial $83MM, 12% Specialty Housing $46MM, 7% Developed Land $30MM, 4% Other $55MM, 8% Restaurants and food $177MM, 16% Retail $150MM, 13% Manufacturing $139MM, 12% Wholesale $107MM, 10% Finance and insurance $67MM, 6% Other services $64MM, 6% Transportation $62MM, 6% Construction $55MM, 5% Administrative support $55MM, 5% Real estate rental $36MM, 3% • Commercial focused loan portfolio 1 • 58% Commercial • 36% CRE • 6% Consumer • Granular portfolio • Average loan size $616,000 2 • 21 loans larger than $10 million outstanding 1 Commercial includes C&I, Owner-Occupied CRE; CRE includes Non-owner occupied CRE, Multifamily, Construction 2 Excludes fintech partnership consumer loans 4 |
|
atlanticcapitalbank.com Hotel Portfolio • $113 million outstanding, $152 million commitments • 53% CRE with select known developers, 39% SBA guaranteed or SBA 504 • 90% large national brands • Average loan size $2.9 million • $42 million (37%) under deferral • No non-accrual or classified as of 3/31/20 Hotel Loans by State Hotel Portfolio Highlights Hotel Loans by Type Hotel Loans by Brand CRE $60MM, 53% SBA 504 $22MM, 19% SBA guaranteed $22MM, 20% SBA unguaranteed $9MM, 8% Hilton $39MM, 35% Marriott $27MM, 24% Hyatt $21MM, 19% InterContinental $14MM, 12% Other $12MM, 10% GA $38MM, 33% SC $12MM, 11% TN $52MM, 46% NC $5MM, 4% FL $4MM, 4% Other $2MM, 2% 5 |
|
atlanticcapitalbank.com Restaurant Portfolio Restaurant Loans by State Restaurant Portfolio Highlights Restaurant Loans by Concept Restaurant Loans by Type • $176 million outstanding, $193 million commitments • Targeted Franchise strategy with concepts we know well • 97% QSR, most operating via drive-thru and delivery • Other QSR comprised of approximately 20 concepts, none over $10MM outstanding • Average loan size $748,000 • $131 million (74%) under deferral • No non-accrual; < $1 million classified as of 3/31/20 GA $52MM, 30% FL $36MM, 20% NJ $16MM, 9% IL $13MM, 7% MD $10MM, 6% MO $9MM, 5% NY $6MM, 3% NC $5MM, 3% OR $5MM, 3% Other $24MM, 14% Dunkin’ $83MM, 47% Other QSR $87MM, 50% Full service $6MM, 3% SNC $9MM, 5% Franchise finance $151MM, 86% C&I $1MM, 1% CRE $5MM, 3% SBA $5MM, 3% TriNet $5MM, 2% 6 |
|
atlanticcapitalbank.com Retail Portfolio Retail Loans by State Retail Portfolio Highlights Retail Loans by Industry ($ in millions) GA $95MM, 33% *CA $68MM, 24% NC $17MM, 6% VA $15MM, 5% NY $12MM, 4% TN $11MM, 4% FL $11MM, 4% Other $60MM, 20% *All of the CA exposure is related to TriNet. • $289 million outstanding, $315 million commitments • 63% in industries deemed essential businesses by most states • 85% of TriNet is drug stores and dollar stores • Average loan size $1.2 million • $45 million (16%) under deferral • $200,000 non-accrual; $2.4 million classified as of 3/31/20 Industry TriNet CRE SNC Franchise SBA C&I Total % of Retail Loans Pharmacies and Drug Stores $ 68 $ - $ - $ - $ - $ - $ 68 24% Gasoline Stations with C Stores - 34 10 --- 44 15% Automotive Parts and Accessories Stores 4 -- 34 -- 38 13% All Other General Merchandise Stores 33 ----- 33 11% Lessors of Nonresidential Buildings (Retail CRE) - 30 ---- 30 10% New Car Dealers - 16 ---- 16 6% Optical Goods Stores -- 12 --- 12 4% Sporting Goods Stores -- 9 --- 9 3% Family Clothing Stores -- 8 --- 8 3% Other 14 3 6 - 6 2 31 11% Total $ 119 $ 83 $ 45 $ 34 $ 6 $ 2 $ 289 % of Retail Loans 41% 29% 15% 12% 2% 1% 100% 7 |
|
atlanticcapitalbank.com Shared National Credit Portfolio SNC Portfolio Highlights SNC Portfolio by Industry • $190 million outstanding, $264 million commitments • Average commitment $12 million • 17% Highly Leveraged Transactions (outstandings) • No non-accrual or classified as of 3/31/20 Aluminum extruded product mfg. $17MM, 9% Air, rail and water transportation $18MM 10% Financial transaction processing $14MM, 7% Employee leasing services $12MM, 6% Optical goods stores $11MM, 6% Commercial printing $10MM, 5% Gas stations with C stores $10MM, 5% Ready-mix concrete manufacturing $10MM, 5% Electronic computer manufacturing $9MM, 5% Limited service restaurants $9MM, 5% Sporting goods stores $9MM, 5% Family clothing stores $7MM, 4% Paint/varnish supplies merchant wholesalers $7MM, 4% Continuing care retirement $12MM, 6% SNC Loans by State GA $65MM, 34% FL $35MM, 18% TN $21MM, 11% MO $18MM, 9% NC $14MM, 7% DE $14MM, 7% AZ $12MM, 6% TX $9MM, 5% AL $2MM, 1% Electronic shopping $6MM, 3% Wine and distilled alcoholic beverage wholesale $6MM, 3% Crushed and broken limestone mining and quarrying $6MM, 3% Other $17MM, 9% 8 |