Yahoo Finance Atlantic Capital Bancshares, Inc. Reports Fourth Quarter 2021 Results
ATLANTA, Jan. 24, 2022 (GLOBE NEWSWIRE) -- Atlantic Capital Bancshares, Inc. (NASDAQ: ACBI) announced net income for the quarter ended December 31, 2021, of $11.7 million, or $0.57 per diluted share, compared to $10.0 million, or $0.48 per diluted share, for the fourth quarter of 2020 and $13.3 million, or $0.65 per diluted share, for the third quarter of 2021.
“Atlantic Capital reported another quarter of solid operating results despite disruptions to economic activity from the Omicron variant and historically low interest rates. All of our businesses contributed to these solid results and credit quality remained strong. New business pipelines are robust in all of our businesses and we anticipate carrying strong momentum into our pending merger with SouthState Corporation,” remarked Douglas Williams, President and Chief Executive Officer.
Fourth Quarter Highlights(1)
Total assets were $3.8 billion, compared to $4.2 billion at September 30, 2021 and $3.6 billion at December 31, 2020.
Return on average assets totaled 1.19% and return on average equity was 12.52% in the fourth quarter of 2021.
Loans held for investment, excluding Paycheck Protection Program (“PPP”) loans, increased $123.8 million, or 22.2% annualized, from September 30, 2021, and increased $292.4 million, or 14.2%, from December 31, 2020.
Quarterly average demand deposit accounts increased $112.3 million, or 32.7% annualized, compared to the third quarter of 2021 and increased $510.4 million, or 52.2%, compared to the fourth quarter of 2020.
Cost of deposits decreased to 0.07% from 0.08% in the third quarter of 2021 and from 0.16% in the fourth quarter of 2020.
Tangible book value per share increased to $17.39 from $16.94 at September 30, 2021 and from $15.62 at December 31, 2020.
Annualized net charge-offs to average loans totaled 0.11% for the fourth quarter of 2021 and 0.06% for the full year 2021. Non-performing assets to total assets were 0.11% at December 31, 2021.
The allowance for credit losses was 1.05% of total loans held for investment at December 31, 2021, compared to 1.16% at September 30, 2021 and 1.55% at December 31, 2020.
On November 16, 2021, ACBI shareholders approved the announced merger with SouthState Corporation (“SouthState”), which is expected to close in 2022, subject to regulatory approval.
Income Statement
Taxable equivalent net interest income totaled $25.7 million for the fourth quarter of 2021, compared to $23.0 million in the fourth quarter of 2020 and $25.1 million in the third quarter of 2021. The fourth quarter of 2021 included $929,000 in PPP loan income, compared to $2.3 million in the fourth quarter of 2020 and $1.9 million in the third quarter of 2021.
Taxable equivalent net interest margin was 2.76% in the fourth quarter of 2021, compared to 2.91% in the fourth quarter of 2020 and 2.69% in the third quarter of 2021. The taxable equivalent net interest margin excluding PPP loans was 2.68% for the fourth quarter of 2021, compared to 2.54% for the third quarter of 2021.
The yield on loans in the fourth quarter of 2021 was 3.86%, a decrease of 3 basis points from the fourth quarter of 2020 and a decrease of 5 basis points from the third quarter of 2021. Excluding PPP loans, the fourth quarter of 2021 loan yield was 3.75%, up 4 basis points from the third quarter of 2021.
The cost of deposits in the fourth quarter of 2021 was 0.07%, a decrease of 9 basis points from the fourth quarter of 2020 and a decrease of 1 basis point from the third quarter of 2021. The cost of interest-bearing deposits decreased 13 basis points to 0.12% from the fourth quarter of 2020 and decreased 3 basis points from the third quarter of 2021.
In the fourth quarter of 2021, we recorded a negative provision for credit losses of $731,000, compared to a provision for credit losses of $481,000 in the fourth quarter of 2020 and a negative provision for credit losses of $2.4 million in the third quarter of 2021.
Noninterest income totaled $4.6 million in the fourth quarter of 2021, compared to $3.0 million in the fourth quarter of 2020 and $4.6 million in the third quarter of 2021.
Noninterest expense totaled $16.0 million in the fourth quarter of 2021, compared to $13.2 million in the fourth quarter of 2020 and $15.0 million in the third quarter of 2021. The fourth quarter of 2021 included $846,000 in merger related expenses compared to $2.9 million in the third quarter of 2021. The third quarter of 2021 also included an expense reduction of $3.0 million as a result of the employee retention payroll tax credit pursuant to the CARES Act.
(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 13.
Balance Sheet
Total loans held for investment were $2.4 billion at December 31, 2021, an increase of $118.2 million from December 31, 2020 and an increase of $93.4 million from September 30, 2021. Loans held for investment, excluding PPP loans, increased $123.8 million, or 22.2% annualized, from September 30, 2021, and increased $292.4 million, or 14.2%, from December 31, 2020.
The allowance for credit losses was 1.05% of total loans held for investment at December 31, 2021, compared to 1.16% at September 30, 2021. The decrease in the allowance was primarily a result of an improvement in our current expected credit losses, or CECL, economic forecast. Excluding the impact of PPP loans, the allowance for credit losses at December 31, 2021 was 1.06%, compared to 1.18% at September 30, 2021.
Total average deposits were $3.4 billion for the fourth quarter of 2021, an increase of $521.4 million, or 18.1%, from the fourth quarter of 2020 and a decrease of $18.1 million, or 2.1% annualized, from the third quarter of 2021. Average noninterest bearing deposits were $1.5 billion for the fourth quarter of 2021, an increase of $510.4 million, or 52.2%, from the fourth quarter of 2020 and an increase of $112.3 million, or 32.7% annualized, from the third quarter of 2021. Noninterest bearing deposits were 43.8% of total average deposits in the fourth quarter of 2021, compared to 34.0% in the fourth quarter of 2020 and 40.3% in the third quarter of 2021.
Merger Update
On July 22, 2021, Atlantic Capital and SouthState entered into an Agreement and Plan of Merger, pursuant to which Atlantic Capital will merge with and into SouthState, with SouthState as the surviving corporation in the merger. The merger remains subject to approval by the Board of Governors of the Federal Reserve System. Approval of the merger has been received from shareholders and the Office of the Comptroller of the Currency.
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) loans held for investment excluding PPP loans (iv) loan yield excluding PPP loans; (v) taxable equivalent net interest margin; (vi) taxable equivalent net interest margin excluding PPP loans; (vii) taxable equivalent income before income taxes; (viii) taxable equivalent income tax expense; (ix) tangible common equity to tangible assets; (x) tangible book value per share, and (xi) allowance for credit losses to loans held for investment excluding PPP loans, in our analysis of the Company's performance. Tangible common equity excludes goodwill 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 the proposed merger with SouthState, 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. Additional information and other factors that could affect future financial results are included in Atlantic Capital’s subsequent filings with the SEC. 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 $3.8 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 payments and other specialized financial services for select clients nationally.
Media Contact:
Ashley Carson
Email:
ashley.carson@atlcapbank.com
Phone: 404-995-6050
(ACB-ER)
Financial Contact:
Patrick Oakes
Email:
patrick.oakes@atlcapbank.com
Phone: 404-995-6050
ATLANTIC CAPITAL BANCSHARES, INC. | ||||||||||||||||||||||||||
Selected Financial Information | ||||||||||||||||||||||||||
For the year ended | ||||||||||||||||||||||||||
2021 | 2020 | December 31, | ||||||||||||||||||||||||
(in thousands, except share and per share data; | Fourth | Third | Second | First | Fourth | |||||||||||||||||||||
taxable equivalent) | Quarter | Quarter | Quarter | Quarter | Quarter | 2021 | 2020 | |||||||||||||||||||
INCOME SUMMARY | ||||||||||||||||||||||||||
Interest income - taxable equivalent (1) | $ | 27,323 | $ | 27,040 | $ | 27,993 | $ | 25,775 | $ | 25,288 | $ | 108,132 | $ | 100,474 | ||||||||||||
Interest expense | 1,658 | 1,895 | 1,958 | 2,065 | 2,299 | 7,576 | 12,023 | |||||||||||||||||||
Net interest income - taxable equivalent | 25,665 | 25,145 | 26,035 | 23,710 | 22,989 | 100,556 | 88,451 | |||||||||||||||||||
Provision for credit losses | (731 | ) | (2,405 | ) | (933 | ) | (4,519 | ) | 481 | (8,588 | ) | 17,446 | ||||||||||||||
Net interest income after provision for credit losses | 26,396 | 27,550 | 26,968 | 28,229 | 22,508 | 109,144 | 71,005 | |||||||||||||||||||
Noninterest income | 4,555 | 4,609 | 3,584 | 3,562 | 3,016 | 16,310 | 10,285 | |||||||||||||||||||
Noninterest expense | 15,963 | 15,018 | 15,197 | 15,149 | 13,164 | 61,327 | 52,659 | |||||||||||||||||||
Income before income taxes | 14,988 | 17,141 | 15,355 | 16,642 | 12,360 | 64,127 | 28,631 | |||||||||||||||||||
Income tax expense | 3,324 | 3,837 | 3,539 | 3,280 | 2,410 | 13,981 | 6,091 | |||||||||||||||||||
Net income(1)(2) | $ | 11,664 | $ | 13,304 | $ | 11,816 | $ | 13,362 | $ | 9,950 | $ | 50,146 | $ | 22,540 | ||||||||||||
PER SHARE DATA | ||||||||||||||||||||||||||
Diluted earnings per share | $ | 0.57 | $ | 0.65 | $ | 0.58 | $ | 0.65 | $ | 0.48 | $ | 2.45 | $ | 1.05 | ||||||||||||
Book value per share | 18.37 | 17.92 | 17.38 | 16.72 | 16.60 | 18.37 | 16.60 | |||||||||||||||||||
Tangible book value per common share (3) | 17.39 | 16.94 | 16.40 | 15.74 | 15.62 | 17.39 | 15.62 | |||||||||||||||||||
PERFORMANCE MEASURES | ||||||||||||||||||||||||||
Return on average equity | 12.52 | % | 14.69 | % | 13.60 | % | 15.99 | % | 11.68 | % | 14.16 | % | 6.67 | % | ||||||||||||
Return on average assets | 1.19 | 1.36 | 1.26 | 1.50 | 1.19 | 1.32 | 0.76 | |||||||||||||||||||
Taxable equivalent net interest margin | 2.76 | 2.69 | 2.91 | 2.81 | 2.91 | 2.79 | 3.16 | |||||||||||||||||||
Taxable equivalent net interest margin excluding PPP loans | 2.68 | 2.54 | 2.70 | 2.70 | 2.81 | 2.66 | 3.18 | |||||||||||||||||||
Efficiency ratio | 53.52 | 51.12 | 51.97 | 56.30 | 51.30 | 53.16 | 54.14 | |||||||||||||||||||
Average loans to average deposits | 67.79 | 65.81 | 67.54 | 71.93 | 76.81 | 68.18 | 84.11 | |||||||||||||||||||
CAPITAL | ||||||||||||||||||||||||||
Average equity to average assets | 9.51 | % | 9.23 | % | 9.24 | % | 9.39 | % | 10.18 | % | 9.34 | % | 11.33 | % | ||||||||||||
Tangible common equity to tangible assets | 9.31 | 8.21 | 8.86 | 8.63 | 8.86 | 9.31 | 8.86 | |||||||||||||||||||
Leverage ratio | 8.9 | (3) | 8.5 | 8.4 | 8.4 | 8.9 | 9.1 | (3) | 8.9 | |||||||||||||||||
Total risk based capital ratio | 15.3 | (3) | 15.9 | 16.0 | 16.4 | 16.1 | 15.3 | (3) | 16.1 | |||||||||||||||||
SHARES OUTSTANDING | ||||||||||||||||||||||||||
Number of common shares outstanding - basic | 20,334,150 | 20,305,109 | 20,319,429 | 20,354,077 | 20,394,912 | 20,334,150 | 20,394,912 | |||||||||||||||||||
Number of common shares outstanding - diluted | 20,573,618 | 20,590,747 | 20,595,812 | 20,617,188 | 20,492,542 | 20,573,618 | 20,492,542 | |||||||||||||||||||
Average number of common shares - basic | 20,309,415 | 20,308,761 | 20,332,503 | 20,380,066 | 20,711,089 | 20,276,717 | 21,342,086 | |||||||||||||||||||
Average number of common shares - diluted | 20,532,447 | 20,507,604 | 20,516,478 | 20,502,184 | 20,795,332 | 20,459,032 | 21,427,722 | |||||||||||||||||||
ASSET QUALITY | ||||||||||||||||||||||||||
Allowance for credit losses to loans held for investment | 1.05 | % | 1.16 | % | 1.27 | % | 1.31 | % | 1.55 | % | 1.05 | % | 1.55 | % | ||||||||||||
Net charge-offs to average loans (4) | 0.11 | 0.00 | 0.10 | 0.04 | 0.05 | 0.06 | 0.11 | |||||||||||||||||||
Non-performing assets to total assets | 0.11 | 0.10 | 0.14 | 0.06 | 0.13 | 0.11 | 0.13 | |||||||||||||||||||
AVERAGE BALANCES | ||||||||||||||||||||||||||
Total loans | $ | 2,302,085 | $ | 2,246,529 | $ | 2,233,906 | $ | 2,270,660 | $ | 2,207,956 | $ | 2,263,335 | $ | 2,105,930 | ||||||||||||
Investment securities | 759,824 | 733,452 | 656,507 | 579,547 | 491,134 | 682,967 | 456,422 | |||||||||||||||||||
Total assets | 3,883,632 | 3,893,049 | 3,771,970 | 3,611,417 | 3,328,719 | 3,791,043 | 2,982,222 | |||||||||||||||||||
Deposits | 3,395,762 | 3,413,882 | 3,307,601 | 3,156,906 | 2,874,402 | 3,319,454 | 2,503,703 | |||||||||||||||||||
Shareholders' equity | 369,485 | 359,300 | 348,416 | 338,990 | 338,948 | 354,144 | 337,879 | |||||||||||||||||||
AT PERIOD END | ||||||||||||||||||||||||||
Loans and loans held for sale | $ | 2,369,321 | $ | 2,285,670 | $ | 2,264,899 | $ | 2,302,661 | $ | 2,249,036 | $ | 2,369,321 | $ | 2,249,036 | ||||||||||||
Investment securities | 738,929 | 772,987 | 714,065 | 613,236 | 535,579 | 738,929 | 535,579 | |||||||||||||||||||
Total assets | 3,819,585 | 4,210,316 | 3,780,445 | 3,732,668 | 3,615,617 | 3,819,585 | 3,615,617 | |||||||||||||||||||
Deposits | 3,327,902 | 3,727,321 | 3,306,224 | 3,277,692 | 3,161,508 | 3,327,902 | 3,161,508 | |||||||||||||||||||
Shareholders’ equity | 373,523 | 363,925 | 353,185 | 340,328 | 338,586 | 373,523 | 338,586 | |||||||||||||||||||
(1)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. | ||||||||||||||||||||||||||
(2)Excludes effect of acquisition related intangibles. | ||||||||||||||||||||||||||
(3)Amounts are estimates as of December 31, 2021. | ||||||||||||||||||||||||||
(4)Annualized. | ||||||||||||||||||||||||||
ATLANTIC CAPITAL BANCSHARES, INC. | |||||||||||||
Consolidated Balance Sheets (unaudited) | |||||||||||||
December 31, | September 30, | December 31, | |||||||||||
(in thousands, except share data) | 2021 | 2021 | 2020 | ||||||||||
ASSETS | |||||||||||||
Cash and due from banks | $ | 16,214 | $ | 25,725 | $ | 16,865 | |||||||
Interest-bearing deposits in banks | 377,780 | 811,168 | 636,537 | ||||||||||
Other short-term investments | 137,181 | 140,848 | — | ||||||||||
Cash and cash equivalents | 531,175 | 977,741 | 653,402 | ||||||||||
Investment securities available for sale | 501,218 | 535,158 | 335,423 | ||||||||||
Investment securities held to maturity, net of allowance for credit losses of $13, $13, and $14, at December 31, 2021, September 30, 2021, and December 31, 2020, respectively | 237,711 | 237,829 | 200,156 | ||||||||||
Other investments | 23,546 | 23,877 | 25,892 | ||||||||||
Loans held for sale | 2,087 | 11,814 | — | ||||||||||
Loans held for investment | 2,367,234 | 2,273,856 | 2,249,036 | ||||||||||
Less: allowance for loan losses | (22,186 | ) | (23,924 | ) | (31,818 | ) | |||||||
Loans held for investment, net | 2,345,048 | 2,249,932 | 2,217,218 | ||||||||||
Premises and equipment, net | 17,540 | 18,517 | 21,589 | ||||||||||
Bank owned life insurance | 74,385 | 74,000 | 72,856 | ||||||||||
Goodwill | 19,925 | 19,925 | 19,925 | ||||||||||
Other intangibles, net | 2,597 | 2,573 | 2,731 | ||||||||||
Other real estate owned | — | — | 16 | ||||||||||
Other assets | 64,353 | 58,950 | 66,409 | ||||||||||
Total assets | $ | 3,819,585 | $ | 4,210,316 | $ | 3,615,617 | |||||||
LIABILITIES AND SHAREHOLDERS’ EQUITY | |||||||||||||
Deposits: | |||||||||||||
Noninterest-bearing demand | $ | 1,471,920 | $ | 1,691,616 | $ | 1,033,765 | |||||||
Interest-bearing checking | 648,763 | 721,525 | 760,638 | ||||||||||
Savings | 884 | 800 | 625 | ||||||||||
Money market | 823,127 | 930,929 | 1,030,753 | ||||||||||
Time | 288,698 | 287,865 | 241,328 | ||||||||||
Brokered deposits | 94,510 | 94,586 | 94,399 | ||||||||||
Total deposits | 3,327,902 | 3,727,321 | 3,161,508 | ||||||||||
Long-term debt | 74,089 | 74,024 | 73,807 | ||||||||||
Other liabilities | 44,071 | 45,046 | 41,716 | ||||||||||
Total liabilities | 3,446,062 | 3,846,391 | 3,277,031 | ||||||||||
SHAREHOLDERS’ EQUITY | |||||||||||||
Preferred stock, no par value; 10,000,000 shares authorized; no shares issued and outstanding as of December 31, 2021, September 30, 2021 and December 31, 2020 | — | — | — | ||||||||||
Common stock, no par value; 100,000,000 shares authorized; 20,334,150, 20,305,109, and 20,394,912 shares issued and outstanding as of December 31, 2021, September 30, 2021 and December 31, 2020, respectively | 207,514 | 207,214 | 209,942 | ||||||||||
Retained earnings | 164,283 | 152,619 | 114,137 | ||||||||||
Accumulated other comprehensive income | 1,726 | 4,092 | 14,507 | ||||||||||
Total shareholders’ equity | 373,523 | 363,925 | 338,586 | ||||||||||
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY | $ | 3,819,585 | $ | 4,210,316 | $ | 3,615,617 | |||||||
ATLANTIC CAPITAL BANCSHARES, INC. | |||||||||||||||||||||||||||||
Consolidated Statements of Income (unaudited) | |||||||||||||||||||||||||||||
(in thousands, except share and per share data) | Three months ended | Year ended | |||||||||||||||||||||||||||
December 31, | September 30, | June 30, | March 31, | December 31, | December 31, | December 31, | |||||||||||||||||||||||
2021 | 2021 | 2021 | 2021 | 2020 | 2021 | 2020 | |||||||||||||||||||||||
INTEREST INCOME | |||||||||||||||||||||||||||||
Loans, including fees | $ | 22,375 | $ | 22,151 | $ | 23,352 | $ | 21,769 | $ | 21,609 | $ | 89,647 | $ | 85,580 | |||||||||||||||
Investment securities | 4,014 | 3,920 | 3,900 | 3,374 | 3,000 | 15,208 | 11,683 | ||||||||||||||||||||||
Interest and dividends on other interest‑earning assets | 541 | 593 | 366 | 267 | 334 | 1,767 | 1,733 | ||||||||||||||||||||||
Total interest income | 26,930 | 26,664 | 27,618 | 25,410 | 24,943 | 106,622 | 98,996 | ||||||||||||||||||||||
INTEREST EXPENSE | |||||||||||||||||||||||||||||
Interest on deposits | 562 | 789 | 851 | 971 | 1,188 | 3,173 | 7,820 | ||||||||||||||||||||||
Interest on Federal Home Loan Bank advances | — | — | — | — | — | — | 54 | ||||||||||||||||||||||
Interest on federal funds purchased and securities sold under agreements to repurchase | — | — | — | — | — | — | 41 | ||||||||||||||||||||||
Interest on long-term debt | 1,096 | 1,106 | 1,107 | 1,094 | 1,111 | 4,403 | 4,108 | ||||||||||||||||||||||
Total interest expense | 1,658 | 1,895 | 1,958 | 2,065 | 2,299 | 7,576 | 12,023 | ||||||||||||||||||||||
NET INTEREST INCOME BEFORE PROVISION FOR CREDIT LOSSES | 25,272 | 24,769 | 25,660 | 23,345 | 22,644 | 99,046 | 86,973 | ||||||||||||||||||||||
Provision for credit losses | (731 | ) | (2,405 | ) | (933 | ) | (4,519 | ) | 481 | (8,588 | ) | 17,446 | |||||||||||||||||
NET INTEREST INCOME AFTER PROVISION FOR CREDIT LOSSES | 26,003 | 27,174 | 26,593 | 27,864 | 22,163 | 107,634 | 69,527 | ||||||||||||||||||||||
NONINTEREST INCOME | |||||||||||||||||||||||||||||
Service charges | 1,777 | 1,765 | 1,727 | 1,663 | 1,341 | 6,932 | 4,871 | ||||||||||||||||||||||
Gains (losses) on sale of securities | — | — | — | 2 | (23 | ) | 2 | (23 | ) | ||||||||||||||||||||
Gains (losses) on sale of other assets | — | 38 | — | — | (6 | ) | 38 | (146 | ) | ||||||||||||||||||||
Derivatives income (loss) | 5 | 21 | (7 | ) | 47 | 11 | 66 | 257 | |||||||||||||||||||||
Bank owned life insurance | 386 | 391 | 388 | 391 | 368 | 1,556 | 1,460 | ||||||||||||||||||||||
SBA lending activities | 1,451 | 1,276 | 1,231 | 1,225 | 1,015 | 5,183 | 3,104 | ||||||||||||||||||||||
Other noninterest income | 936 | 1,118 | 245 | 234 | 310 | 2,533 | 762 | ||||||||||||||||||||||
Total noninterest income | 4,555 | 4,609 | 3,584 | 3,562 | 3,016 | 16,310 | 10,285 | ||||||||||||||||||||||
NONINTEREST EXPENSE | |||||||||||||||||||||||||||||
Salaries and employee benefits | 10,176 | 10,290 | 10,362 | 10,421 | 8,437 | 41,249 | 34,229 | ||||||||||||||||||||||
Employee retention credit | — | (3,035 | ) | — | — | — | (3,035 | ) | — | ||||||||||||||||||||
Occupancy | 682 | 756 | 778 | 734 | 767 | 2,950 | 3,183 | ||||||||||||||||||||||
Equipment and software | 688 | 857 | 819 | 774 | 969 | 3,138 | 3,337 | ||||||||||||||||||||||
Professional services | 653 | 737 | 723 | 922 | 686 | 3,035 | 2,745 | ||||||||||||||||||||||
Communications and data processing | 1,011 | 889 | 869 | 792 | 789 | 3,561 | 3,113 | ||||||||||||||||||||||
Marketing and business development | 145 | 142 | 138 | 108 | 144 | 533 | 517 | ||||||||||||||||||||||
Travel, meals and entertainment | 102 | 91 | 47 | 10 | 14 | 250 | 227 | ||||||||||||||||||||||
FDIC premiums | 506 | 478 | 421 | 275 | 241 | 1,680 | 629 | ||||||||||||||||||||||
Merger and conversion costs | 846 | 2,899 | — | — | — | 3,745 | — | ||||||||||||||||||||||
Other noninterest expense | 1,154 | 914 | 1,040 | 1,113 | 1,117 | 4,221 | 4,679 | ||||||||||||||||||||||
Total noninterest expense | 15,963 | 15,018 | 15,197 | 15,149 | 13,164 | 61,327 | 52,659 | ||||||||||||||||||||||
INCOME BEFORE PROVISION FOR INCOME TAXES | 14,595 | 16,765 | 14,980 | 16,277 | 12,015 | 62,617 | 27,153 | ||||||||||||||||||||||
Provision for income taxes | 2,931 | 3,461 | 3,164 | 2,915 | 2,065 | 12,471 | 4,613 | ||||||||||||||||||||||
NET INCOME | $ | 11,664 | $ | 13,304 | $ | 11,816 | $ | 13,362 | $ | 9,950 | $ | 50,146 | $ | 22,540 | |||||||||||||||
Net income per common share - basic | $ | 0.57 | $ | 0.66 | $ | 0.58 | $ | 0.66 | $ | 0.48 | $ | 2.47 | $ | 1.06 | |||||||||||||||
Net income per common share - diluted | $ | 0.57 | $ | 0.65 | $ | 0.58 | $ | 0.65 | $ | 0.48 | $ | 2.45 | $ | 1.05 | |||||||||||||||
Weighted average shares - basic | 20,309,415 | 20,308,761 | 20,332,503 | 20,380,066 | 20,711,089 | 20,276,717 | 21,342,086 | ||||||||||||||||||||||
Weighted average shares - diluted | 20,532,447 | 20,507,604 | 20,516,478 | 20,502,184 | 20,795,332 | 20,459,032 | 21,427,722 | ||||||||||||||||||||||
ATLANTIC CAPITAL BANCSHARES, INC. | |||||||||||||||||||
Average Balance Sheets and Net Interest Margin Analysis | |||||||||||||||||||
Selected Financial Information | |||||||||||||||||||
Three months ended | |||||||||||||||||||
December 31, 2021 | September 30, 2021 | ||||||||||||||||||
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 | $ | 476,945 | $ | 201 | 0.17 | % | $ | 594,338 | $ | 266 | 0.18 | % | |||||||
Other short-term investments | 139,094 | 174 | 0.50 | 122,477 | 156 | 0.51 | |||||||||||||
Investment securities: | |||||||||||||||||||
Taxable investment securities | 533,088 | 2,453 | 1.83 | 503,420 | 2,411 | 1.90 | |||||||||||||
Non-taxable investment securities (1) | 226,736 | 1,954 | 3.42 | 230,032 | 1,885 | 3.25 | |||||||||||||
Total investment securities | 759,824 | 4,407 | 2.30 | 733,452 | 4,296 | 2.32 | |||||||||||||
Loans | 2,302,085 | 22,375 | 3.86 | 2,246,529 | 22,151 | 3.91 | |||||||||||||
FHLB and FRB stock | 11,972 | 166 | 5.50 | 11,931 | 171 | 5.69 | |||||||||||||
Total interest-earning assets | 3,689,920 | 27,323 | 2.94 | 3,708,727 | 27,040 | 2.89 | |||||||||||||
Non-earning assets | 193,712 | 184,322 | |||||||||||||||||
Total assets | $ | 3,883,632 | $ | 3,893,049 | |||||||||||||||
Liabilities | |||||||||||||||||||
Interest bearing deposits: | |||||||||||||||||||
NOW, money market, and savings | 1,526,469 | 453 | 0.12 | 1,665,462 | 680 | 0.16 | |||||||||||||
Time deposits | 287,617 | 44 | 0.06 | 285,808 | 50 | 0.07 | |||||||||||||
Brokered deposits | 94,271 | 65 | 0.27 | 87,498 | 59 | 0.27 | |||||||||||||
Total interest-bearing deposits | 1,908,357 | 562 | 0.12 | 2,038,768 | 789 | 0.15 | |||||||||||||
Total borrowings | — | — | — | — | — | — | |||||||||||||
Total long-term debt | 74,046 | 1,096 | 5.87 | 73,978 | 1,106 | 5.93 | |||||||||||||
Total interest-bearing liabilities | 1,982,403 | 1,658 | 0.33 | 2,112,746 | 1,895 | 0.36 | |||||||||||||
Demand deposits | 1,487,405 | 1,375,114 | |||||||||||||||||
Other liabilities | 44,339 | 45,889 | |||||||||||||||||
Shareholders’ equity | 369,485 | 359,300 | |||||||||||||||||
Total liabilities and shareholders’ equity | $ | 3,883,632 | $ | 3,893,049 | |||||||||||||||
Net interest spread | 2.61 | % | 2.53 | % | |||||||||||||||
Net interest income and net interest margin (2) | $ | 25,665 | 2.76 | % | $ | 25,145 | 2.69 | % | |||||||||||
Non-taxable equivalent net interest margin | 2.72 | % | 2.65 | % | |||||||||||||||
(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 | |||||||||||||||||||
December 31, 2021 | December 31, 2020 | ||||||||||||||||||
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 | $ | 476,945 | $ | 201 | 0.17 | % | $ | 435,939 | $ | 141 | 0.13 | % | |||||||
Other short-term investments | 139,094 | 174 | 0.50 | — | — | — | |||||||||||||
Investment securities: | |||||||||||||||||||
Taxable investment securities | 533,088 | 2,453 | 1.83 | 275,872 | 1,587 | 2.29 | |||||||||||||
Non-taxable investment securities (1) | 226,736 | 1,954 | 3.42 | 215,262 | 1,758 | 3.25 | |||||||||||||
Total investment securities | 759,824 | 4,407 | 2.30 | 491,134 | 3,345 | 2.71 | |||||||||||||
Loans | 2,302,085 | 22,375 | 3.86 | 2,207,956 | 21,609 | 3.89 | |||||||||||||
FHLB and FRB stock | 11,972 | 166 | 5.50 | 12,699 | 193 | 6.05 | |||||||||||||
Total interest-earning assets | 3,689,920 | 27,323 | 2.94 | 3,147,728 | 25,288 | 3.20 | |||||||||||||
Non-earning assets | 193,712 | 180,991 | |||||||||||||||||
Total assets | $ | 3,883,632 | $ | 3,328,719 | |||||||||||||||
Liabilities | |||||||||||||||||||
Interest bearing deposits: | |||||||||||||||||||
NOW, money market, and savings | 1,526,469 | 453 | 0.12 | 1,585,928 | 1,043 | 0.26 | |||||||||||||
Time deposits | 287,617 | 44 | 0.06 | 221,792 | 72 | 0.13 | |||||||||||||
Brokered deposits | 94,271 | 65 | 0.27 | 89,673 | 73 | 0.32 | |||||||||||||
Total interest-bearing deposits | 1,908,357 | 562 | 0.12 | 1,897,393 | 1,188 | 0.25 | |||||||||||||
Total borrowings | — | — | — | — | — | — | |||||||||||||
Total long-term debt | 74,046 | 1,096 | 5.87 | 73,811 | 1,111 | 5.99 | |||||||||||||
Total interest-bearing liabilities | 1,982,403 | 1,658 | 0.33 | 1,971,204 | 2,299 | 0.46 | |||||||||||||
Demand deposits | 1,487,405 | 977,009 | |||||||||||||||||
Other liabilities | 44,339 | 41,558 | |||||||||||||||||
Shareholders’ equity | 369,485 | 338,948 | |||||||||||||||||
Total liabilities and shareholders’ equity | $ | 3,883,632 | $ | 3,328,719 | |||||||||||||||
Net interest spread | 2.61 | % | 2.73 | % | |||||||||||||||
Net interest income and net interest margin (2) | $ | 25,665 | 2.76 | % | $ | 22,989 | 2.91 | % | |||||||||||
Non-taxable equivalent net interest margin | 2.72 | % | 2.86 | % | |||||||||||||||
(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 | |||||||||||||||||||
Year ended | |||||||||||||||||||
December 31, 2021 | December 31, 2020 | ||||||||||||||||||
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 | $ | 580,203 | $ | 835 | 0.14 | % | $ | 220,225 | $ | 897 | 0.41 | % | |||||||
Other short-term investments | 65,930 | 330 | 0.50 | 27 | — | — | |||||||||||||
Investment securities: | |||||||||||||||||||
Taxable investment securities | 455,466 | 9,145 | 2.01 | 253,799 | 6,316 | 2.49 | |||||||||||||
227,501 | |||||||||||||||||||
