EX-99.1 2 ex-99d1.htm EX-99.1 acbi_Ex99_1

Exhibit 99.1

PRESS RELEASE

 

ATLANTIC CAPITAL BANCSHARES, INC. REPORTS THIRD QUARTER 2019 RESULTS

Atlanta, GA – October 24, 2019 – Atlantic Capital Bancshares, Inc. (NASDAQ: ACBI) announced net income from continuing operations for the quarter ended September 30, 2019 of $7.6 million, or $0.33 per diluted share, compared to $7.0 million, or $0.27 per diluted share, for the third quarter of 2018 and $7.0 million, or $0.29 per diluted share, for the second quarter of 2019.   

Diluted earnings per share from continuing operations for the first nine months of 2019 improved to $0.88, an increase of $0.09, or 11%, compared to the first nine months of 2018.

 “With solid loan and deposit growth from new and expanded client relationships, disciplined expense management, and sound credit quality, Atlantic Capital recorded another quarter of strong operating results,” remarked Douglas Williams, President and Chief Executive Officer.

Third Quarter Highlights(1)

·

Tangible book value per share increased to $13.91, from $11.37 at September 30, 2018 and $13.60 at June 30, 2019. 

·

Total loans held for investment increased $173.2 million, or 10.4%, from September 30, 2018 and $45.9 million, or 10.3% annualized, from June 30, 2019. 

·

Average deposits from continuing operations increased $297.0 million, or 18.0%, compared to the third quarter of 2018 and $47.6 million, or 10.0% annualized, compared to the second quarter of 2019.

·

Efficiency ratio from continuing operations of 55.7% compared to 55.1% in the third quarter of 2018 and 58.1% in the second quarter of 2019.

·

Taxable equivalent net interest margin from continuing operations was 3.52%, compared to 3.48% in the third quarter of 2018 and 3.61% in the second quarter of 2019.

·

The company repurchased 1.2 million shares in the third quarter totaling $20.1 million, and has repurchased 4.1 million shares totaling $70.9 million since the announcement of the $85.0 million buyback program in November of 2018.

Income Statement

Taxable equivalent net interest income from continuing operations totaled $20.1 million for the third quarter of 2019, an increase of $694,000, or 4%, from the third quarter of 2018, and an increase of $111,000, or 2% annualized, from the second quarter of 2019.

Net interest margin from continuing operations was 3.52% in the third quarter of 2019, an increase of 4 basis points from the third quarter of 2018 and a decrease of 9 basis points from the second quarter of 2019.  The decrease in the third quarter of 2019 compared to the second quarter of 2019 was primarily the result of lower loan yields due to lower short term interest rates, partially offset by a drop in the cost of interest bearing deposits and an increase in noninterest bearing deposits. 

The yield on loans from continuing operations in the third quarter of 2019 was 5.18%, an increase of 14 basis points from the third quarter of 2018 and a decrease of 16 basis points from the second quarter of 2019.  The linked quarter decrease in loan yields was due primarily to the repricing of our variable rate loans as a result of declines in 1 month LIBOR.

The cost of deposits from continuing operations in the third quarter of 2019 was 1.06%, an increase of 30 basis points from the third quarter of 2018 and a decrease of 9 basis points from the second quarter of 2019. The cost of interest bearing deposits from continuing operations increased 42 basis points to 1.58% from the third quarter of 2018, and decreased 8

(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.

 

basis points from the second quarter of 2019. The linked quarter decrease in the cost of interest bearing deposits reflects the actions taken to reduce deposit costs resulting from the reductions in the fed funds target rate.    

The provision for loan losses for continuing operations was $413,000 in the third quarter of 2019 compared to $845,000 in the third quarter of 2018 and $698,000 in the second quarter of 2019.  Annualized net charge-offs were 0.11% of average loans in the third quarter of 2019 and 0.12% for the first nine months of 2019.

Noninterest income from continuing operations totaled $2.8 million in the third quarter of 2019 compared to $2.3 million in the third quarter of 2018, and increase of $514,000, or 23%, and $2.9 million in the second quarter of 2019, a decrease of $172,000, or 6%.  The third quarter of 2019 included a gain of $253,000 on the sale investment securities compared to a gain of $654,000 in the second quarter of 2019. The third quarter of 2019 also included a gain of $140,000 on the sale of other assets and a loss of $293,000 in derivative income due to the credit valuation adjustment on the customer swap portfolio. 

Noninterest expense from continuing operations totaled $12.7 million in the third quarter of 2019, an increase of $805,000, or 7%, compared to the third quarter of 2018, and a decrease of $577,000, or 4% compared to the second quarter of 2019.  The FDIC premium expense in the third quarter of 2019 decreased $368,000 compared to the second quarter of 2019 due to an FDIC assessment credit received.  Salaries and employee benefits expense decreased $234,000, to $8.3 million in the third quarter of 2019 compared to the second quarter of 2019, partly as a result of lower benefits cost.

The overall effective tax rate from continuing operations was 21.7% for the third quarter of 2019 and 21.3% for the first nine months of 2019.

Balance Sheet

Total loans held for investment were $1.84 billion at September 30, 2019, an increase of $173.2 million, or 10.4%, from September 30, 2018 and an increase of $45.9 million, or 10.3% annualized, from June 30, 2019. 

At September 30, 2019, the allowance for loan losses was $18.1 million, or 0.98% of loans held for investment compared to 1.00% at September 30, 2018 and 1.02% at June 30, 2019.  Non-performing assets from continuing operations totaled $7.0 million, or 0.29% of total assets, as of September 30, 2019, compared to 0.11% of total assets as of September 30, 2018 and 0.31% of total assets as of June 30, 2019. 

Total average deposits from continuing operations were $1.95 billion for the third quarter of 2019, an increase of $297.0 million, or 18.0%, from the third quarter of 2018 and an increase of $47.6 million, or 10.0% annualized, from the second quarter of 2019. Noninterest bearing deposits were 32.7% of total average deposits from continuing operations in the third quarter of 2019, compared to 34.0% in the third quarter of 2018 and 30.9% in the second quarter of 2019.

Tangible common equity to tangible assets was 12.9% at September 30, 2019 compared to 10.4% at September 30, 2018 and 13.4% at June 30, 2019.  The total risk based capital ratio was estimated at 15.5% at September 30, 2019 compared to 14.7% at September 30, 2018 and 16.5% at June 30, 2019. 

Earnings Conference Call

The Company will host a conference call at 9:00 a.m. EST on Friday, October 25, 2019, to discuss the financial results for the quarter ended September 30, 2019. Individuals wishing to participate in the conference call may do so by dialing 866-777-2509 from the United States. The call will also be available live via webcast on the Investor Relations page of the Company's website, www.atlanticcapitalbank.com.

Non-GAAP Financial Measures

Statements included in this press release include non-GAAP financial measures and should be read along with the accompanying tables, which provide a reconciliation of non-GAAP financial measures to GAAP financial measures. Atlantic Capital management uses non-GAAP financial measures, including: (i) taxable equivalent interest income; (ii)

 

2

taxable equivalent net interest income; (iii) taxable equivalent net interest margin; (iv) taxable equivalent income before income taxes; (v) taxable equivalent income tax expense; (vi) tangible assets; (vii) tangible common equity; and (viii) tangible book value per common share, in its analysis of the Company's performance. Tangible common equity excludes goodwill and other intangible assets from shareholders' equity.

Management believes that non-GAAP financial measures provide a greater understanding of ongoing performance and operations, and enhance comparability with prior periods. Non-GAAP financial measures should not be considered as an alternative to any measure of performance or financial condition as determined in accordance with GAAP, and investors should consider Atlantic Capital’s performance and financial condition as reported under GAAP and all other relevant information when assessing the performance or financial condition of the Company. Non-GAAP financial measures have limitations as analytical tools, and investors should not consider them in isolation or as a substitute for analysis of the results or financial condition as reported under GAAP. Non-GAAP financial measures may not be comparable to non-GAAP financial measures presented by other companies.

Forward-Looking Statements

This press release contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements represent plans, estimates, objectives, goals, guidelines, expectations, intentions, projections and statements of our beliefs concerning future events, business plans, objectives, expected operating results and the assumptions upon which those statements are based. Forward-looking statements include without limitation, any statement that may predict, forecast, indicate or imply future results, performance or achievements, and are typically identified with words such as “may,” “could,” “should,” “will,” “would,” “believe,” “anticipate,” “estimate,” “project,” “expect,” “intend,” “plan,” or words or phases of similar meaning. Forward-looking statements may include, among other things, statements about Atlantic Capital’s confidence in its strategies and its expectations about financial performance, market growth, market and regulatory trends and developments, acquisitions and divestitures, new technologies, services and opportunities and earnings. The forward-looking statements are based largely on Atlantic Capital’s expectations and are subject to a number of known and unknown risks and uncertainties that are subject to change based on factors which are, in many instances, beyond Atlantic Capital’s control. Atlantic Capital undertakes no obligation to publicly update any forward-looking statement to reflect developments occurring after the statement is made, except as otherwise required by law. Actual results, performance or achievements could differ materially from those contemplated, expressed, or implied by the forward-looking statements as a result of, among other factors, the risks and uncertainties described in “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in Atlantic Capital’s Annual Report on Form 10-K and Quarterly Reports on Form 10-Q. Please refer to the SEC’s website at www.sec.gov where you can review those documents.

About Atlantic Capital Bancshares

Atlantic Capital Bancshares, Inc. is a $2.4 billion publicly traded bank holding company headquartered in Atlanta, Georgia. Atlantic Capital offers commercial and not-for-profit banking services, specialty corporate financial services, private banking services and commercial real estate finance solutions to privately held companies and individuals in the Atlanta area, as well as specialized financial services for select clients nationally.

 

Media Contact:

Ashley Carson

Email: ashley.carson@atlcapbank.com

Phone: 404-995-6050

 

Financial Contact:

Patrick Oakes

Email: patrick.oakes@atlcapbank.com

Phone: 404-995-6050

 

 

3

ATLANTIC CAPITAL BANCSHARES, INC.

Selected Financial Information

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

For the nine months ended

 

 

 

2019

 

2018

 

September 30, 

 

 

Third

    

Second

    

First

    

Fourth

    

Third

    

 

 

    

 

 

 

(in thousands, except share and per share data; taxable equivalent)

 

Quarter

 

Quarter

 

Quarter

 

Quarter

 

Quarter

 

2019

 

2018

 

INCOME SUMMARY (1)

 

 

  

 

 

  

 

 

  

 

 

  

 

 

  

 

 

  

 

 

  

 

Interest income (2)

 

$

26,624

 

$

26,686

 

$

26,297

 

$

26,725

 

$

24,114

 

$

79,607

 

$

68,430

 

Interest expense

 

 

6,536

 

 

6,709

 

 

5,773

 

 

5,560

 

 

4,720

 

 

19,018

 

 

12,953

 

Net interest income

 

 

20,088

 

 

19,977

 

 

20,524

 

 

21,165

 

 

19,394

 

 

60,589

 

 

55,477

 

Provision for loan losses

 

 

413

 

 

698

 

 

814

 

 

502

 

 

845

 

 

1,925

 

 

1,444

 

Net interest income after provision for loan losses

 

 

19,675

 

 

19,279

 

 

19,710

 

 

20,663

 

 

18,549

 

 

58,664

 

 

54,033

 

Noninterest income

 

 

2,769

 

 

2,941

 

 

2,336

 

 

164

 

 

2,255

 

 

8,046

 

 

9,883

 

Noninterest expense

 

 

12,677

 

 

13,254

 

 

13,795

 

 

12,208

 

 

11,872

 

 

39,726

 

 

37,783

 

Income from continuing operations before income taxes

 

 

9,767

 

 

8,966

 

 

8,251

 

 

8,619

 

 

8,932

 

 

26,984

 

 

26,133

 

Income tax expense

 

 

2,198

 

 

1,957

 

 

1,811

 

 

1,136

 

 

1,934

 

 

5,966

 

 

5,566

 

Net income from continuing operations

 

 

7,569

 

 

7,009

 

 

6,440

 

 

7,483

 

 

6,998

 

 

21,018

 

 

20,567

 

Income (loss) from discontinued operations, net of tax

 

 

617

 

 

22,143

 

 

(1,063)

 

 

1,347

 

 

(485)

 

 

21,697

 

 

(865)

 

Net income

 

$

8,186

 

$

29,152

 

$

5,377

 

$

8,830

 

$

6,513

 

$

42,715

 

$

19,702

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

PER SHARE DATA

 

 

  

 

 

  

 

 

  

 

 

  

 

 

  

 

 

  

 

 

  

 

Diluted earnings per share - continuing operations

 

$

0.33

 

$

0.29

 

$

0.26

 

$

0.29

 

$

0.27

 

$

0.88

 

$

0.79

 

Diluted earnings (loss) per share - discontinued operations

 

 

0.03

 

 

0.92

 

 

(0.04)

 

 

0.05

 

 

(0.02)

 

 

0.91

 

 

(0.03)

 

Diluted earnings per share

 

 

0.36

 

 

1.21

 

 

0.21

 

 

0.34

 

 

0.25

 

 

1.78

 

 

0.75

 

Book value per share

 

 

14.81

 

 

14.46

 

 

13.10

 

 

12.80

 

 

12.27

 

 

14.81

 

 

12.27

 

Tangible book value per common share (3)

 

 

13.91

 

 

13.60

 

 

12.17

 

 

11.88

 

 

11.37

 

 

13.91

 

 

11.37

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

PERFORMANCE MEASURES

 

 

  

 

 

  

 

 

  

 

 

  

 

 

  

 

 

  

 

 

  

 

Return on average equity

 

 

9.77

%  

 

34.38

%  

 

6.80

%  

 

10.90

%  

 

8.07

%  

 

17.25

%  

 

8.41

%

Return on average assets

 

 

1.32

 

 

4.79

 

 

0.77

 

 

1.21

 

 

0.92

 

 

2.22

 

 

0.96

 

Taxable equivalent net interest margin - continuing operations

 

 

3.52

 

 

3.61

 

 

3.74

 

 

3.66

 

 

3.48

 

 

3.66

 

 

3.46

 

Efficiency ratio - continuing operations

 

 

55.72

 

 

58.06

 

 

60.61

 

 

57.50

 

 

55.09

 

 

58.13

 

 

58.07

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

CAPITAL

 

 

  

 

 

  

 

 

  

 

 

  

 

 

  

 

 

  

 

 

  

 

Average equity to average assets

 

 

13.54

%  

 

13.94

%  

 

11.34

%  

 

11.11

%  

 

11.41

%  

 

12.87

%  

 

11.42

%

Tangible common equity to tangible assets

 

 

12.92

 

 

13.37

 

 

10.51

 

 

10.25

 

 

10.38

 

 

12.92

 

 

10.38

 

Tier 1 capital ratio

 

 

12.5

(4)

 

13.4

 

 

11.0

 

 

11.5

 

 

11.8

 

 

12.5

(4)

 

11.8

 

Total risk based capital ratio

 

 

15.5

(4)

 

16.5

 

 

13.7

 

 

14.2

 

 

14.7

 

 

15.5

(4)

 

14.7

 

Number of common shares outstanding - basic

 

 

22,193,761

 

 

23,293,465

 

 

24,466,964

 

 

25,290,419

 

 

26,103,666

 

 

22,193,761

 

 

26,103,666

 

Number of common shares outstanding - diluted

 

 

22,405,141

 

 

23,508,442

 

 

24,719,273

 

 

25,480,233

 

 

26,281,849

 

 

22,405,141

 

 

26,281,849

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

ASSET QUALITY

 

 

  

 

 

  

 

 

  

 

 

  

 

 

  

 

 

  

 

 

  

 

Allowance for loan losses to loans held for investment (5)

 

 

0.98

%  

 

1.02

%  

 

1.04

%  

 

1.03

%  

 

1.00

%  

 

0.98

%  

 

1.00

%

Net charge-offs to average loans (6)

 

 

0.11

 

 

0.14

 

 

0.11

 

 

 —

 

 

 —

 

 

0.12

 

 

0.02

 

Non-performing assets to total assets

 

 

0.29

 

 

0.31

 

 

0.40

 

 

0.20

 

 

0.13

 

 

0.29

 

 

0.13

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

AVERAGE BALANCES

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total loans - continuing operations

 

$

1,801,629

 

$

1,769,803

 

$

1,707,682

 

$

1,699,801

 

$

1,583,563

 

$

1,739,917

 

$

1,553,609

 

Investment securities

 

 

340,872

 

 

360,047

 

 

400,101

 

 

450,465

 

 

461,348

 

 

366,790

 

 

456,660

 

Total assets

 

 

2,453,438

 

 

2,440,502

 

 

2,829,072

 

 

2,891,327

 

 

2,805,740

 

 

2,572,961

 

 

2,743,247

 

Deposits - continuing operations

 

 

1,949,657

 

 

1,902,076

 

 

1,793,791

 

 

1,780,092

 

 

1,652,651

 

 

1,851,674

 

 

1,583,859

 

Shareholders' equity

 

 

332,291

 

 

340,119

 

 

320,812

 

 

321,348

 

 

320,090

 

 

331,116

 

 

313,200

 

Number of common shares - basic

 

 

22,681,904

 

 

23,888,381

 

 

24,855,171

 

 

25,919,445

 

 

26,103,397

 

 

23,800,525

 

 

25,956,336

 

Number of common shares - diluted

 

 

22,837,531

 

 

24,040,806

 

 

25,019,384

 

 

26,043,799

 

 

26,254,772

 

 

23,957,915

 

 

26,134,655

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1)On April 5, 2019, Atlantic Capital completed the sale to FirstBank of its Tennessee and northwest Georgia banking operations, including 14 branches and the mortgage business. The mortgage business and branches sold to FirstBank are reported as discontinued operations.  Discontinued operations have been reported retrospectively for periods presented prior to December 31, 2018. (2)Interest income on tax-exempt securities has been increased to reflect comparable interest on taxable securities. The rate used was 21%, reflecting the statutory federal income tax rate.  (3)Excludes effect of acquisition related intangibles. (4)Amounts are estimates as of 9/30/19. (5)The ratios for the first, second and third quarters of 2019 and third and fourth quarter of 2018 are calculated on a continuing operations basis.  Prior period ratios have not been retrospectively adjusted for the impact of discontinued operations.  (6)Annualized.

 

4

ATLANTIC CAPITAL BANCSHARES, INC.

Financial Information from Discontinued Operations

Assets and Liabilities from Discontinued Operations

 

 

 

 

 

 

 

 

 

 

(in thousands)

    

September 30, 2019

    

June 30, 2019

    

December 31, 2018

Cash

 

$

 —

 

$

 —

 

$

4,234

Loans held for sale - discontinued operations

 

 

 —

 

 

 —

 

 

373,030

Premises held for sale - discontinued operations

 

 

 —

 

 

 —

 

 

7,722

Goodwill - discontinued operations

 

 

 —

 

 

 —

 

 

4,555

Other assets

 

 

 —

 

 

 —

 

 

1,405

Total assets

 

$

 —

 

$

 —

 

$

390,946

 

 

 

 

 

 

 

 

 

 

Deposits to be assumed - discontinued operations

 

$

 —

 

$

 —

 

$

585,429

Securities sold under agreements to repurchase - discontinued operations

 

 

 —

 

 

 —

 

 

6,220

Total liabilities

 

$

 —

 

$

 —

 

$

591,649

Net liabilities

 

$

 —

 

$

 —

 

$

(200,703)

 

Components of Net Income (Loss) from Discontinued Operations

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

For the nine months ended

 

 

2019

 

2018

 

September 30, 

 

    

Third

    

Second

    

First

    

Fourth

    

Third

    

 

 

    

 

 

(in thousands)

 

Quarter

 

Quarter

 

Quarter

 

Quarter

 

Quarter

 

2019

 

2018

Net interest income

 

$

 —

 

$

(39)

 

$

3,125

 

$

3,225

 

$

3,266

 

$

3,086

 

$

10,915

Provision for loan losses

 

 

 —

 

 

 —

 

 

 —

 

 

(3,097)

 

 

 —

 

 

 —

 

 

 —

Net interest income after provision

 

 

 —

 

 

(39)

 

 

3,125

 

 

6,322

 

 

3,266

 

 

3,086

 

 

10,915

Service charges

 

 

 —

 

 

46

 

 

481

 

 

483

 

 

474

 

 

527

 

 

1,439

Mortgage income

 

 

 —

 

 

 —

 

 

288

 

 

320

 

 

315

 

 

288

 

 

982

Gain on sale of branches

 

 

 —

 

 

34,475

 

 

 —

 

 

 —

 

 

 —

 

 

34,475

 

 

 —

Other income

 

 

 —

 

 

(22)

 

 

21

 

 

47

 

 

22

 

 

(1)

 

 

76

Total noninterest income

 

 

 —

 

 

34,499

 

 

790

 

 

850

 

 

811

 

 

35,289

 

 

2,497

Salaries and employee benefits

 

 

 —

 

 

330

 

 

2,427

 

 

2,757

 

 

2,820

 

 

2,757

 

 

8,957

Occupancy

 

 

 —

 

 

71

 

 

339

 

 

479

 

 

556

 

 

410

 

 

1,537

Equipment and software

 

 

 —

 

 

 8

 

 

123

 

 

158

 

 

217

 

 

131

 

 

621

Amortization of intangibles

 

 

 —

 

 

 —

 

 

247

 

 

271

 

 

296

 

 

247

 

 

958

Communications and data processing

 

 

 —

 

 

197

 

 

389

 

 

440

 

 

381

 

 

586

 

 

1,089

Divestiture expense

 

 

 —

 

 

3,646

 

 

1,449

 

 

825

 

 

 —

 

 

5,095

 

 

 —

Other noninterest expense

 

 

 —

 

 

101

 

 

358

 

 

446

 

 

453

 

 

459

 

 

1,403

Total noninterest expense

 

 

 —

 

 

4,353

 

 

5,332

 

 

5,376

 

 

4,723

 

 

9,685

 

 

14,565

Net income (loss) before provision for income taxes

 

 

 —

 

 

30,107

 

 

(1,417)

 

 

1,796

 

 

(646)

 

 

28,690

 

 

(1,153)

Provision (benefit) for income taxes

 

 

(617)

 

 

7,964

 

 

(354)

 

 

449

 

 

(161)

 

 

6,993

 

 

(288)

Net income (loss) from discontinued operations

 

$

617

 

$

22,143

 

$

(1,063)

 

$

1,347

 

$

(485)

 

$

21,697

 

$

(865)

 

 

5

ATLANTIC CAPITAL BANCSHARES, INC.

Consolidated Balance Sheets (unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

    

September 30, 

    

June 30, 

    

December 31, 

    

September 30, 

(in thousands, except share data)

 

2019

 

2019

 

2018

 

2018

ASSETS

 

 

  

 

 

  

 

 

  

 

 

  

Cash and due from banks

 

$

42,577

 

$

24,206

 

$

42,895

 

$

28,007

Interest-bearing deposits in banks

 

 

27,167

 

 

52,932

 

 

216,040

 

 

140,682

Other short-term investments

 

 

 —

 

 

 —

 

 

9,457

 

 

20,898

Cash and cash equivalents

 

 

69,744

 

 

77,138

 

 

268,392

 

 

189,587

Investment securities available for sale

 

 

286,785

 

 

348,723

 

 

402,486

 

 

465,756

Investment securities held to maturity

 

 

42,863

 

 

 —

 

 

 —

 

 

 —

Other investments

 

 

31,360

 

 

31,912

 

 

29,236

 

 

33,021

Loans held for sale

 

 

916

 

 

 —

 

 

5,889

 

 

1,886

Loans held for sale - discontinued operations(1)

 

 

 —

 

 

 —

 

 

373,030

 

 

375,976

Loans held for investment(1)

 

 

1,835,673

 

 

1,789,740

 

 

1,728,073

 

 

1,662,458

Less: allowance for loan losses(2)

 

 

(18,080)

 

 

(18,186)

 

 

(17,851)

 

 

(20,443)

Loans held for investment, net

 

 

1,817,593

 

 

1,771,554

 

 

1,710,222

 

 

1,642,015

Premises held for sale - discontinued operations(1)

 

 

 —

 

 

 —

 

 

7,722

 

 

7,158

Premises and equipment, net(1)

 

 

19,688

 

 

20,037

 

 

9,779

 

 

10,213

Bank owned life insurance

 

 

66,047

 

 

65,874

 

 

65,149

 

 

64,769

Goodwill - discontinued operations(1)

 

 

 —

 

 

 —

 

 

4,555

 

 

4,555

Goodwill - continuing operations(1)

 

 

19,925

 

 

19,925

 

 

17,135

 

 

17,135

Other intangibles, net

 

 

3,112

 

 

3,095

 

 

4,388

 

 

4,867

Other real estate owned

 

 

278

 

 

971

 

 

874

 

 

968

Other assets

 

 

51,887

 

 

50,451

 

 

56,583

 

 

64,815

Total assets

 

$

2,410,198

 

$

2,389,680

 

$

2,955,440

 

$

2,882,721

 

 

 

 

 

 

 

 

 

 

 

 

 

LIABILITIES AND SHAREHOLDERS’ EQUITY

 

 

  

 

 

  

 

 

  

 

 

  

Deposits:

 

 

  

 

 

  

 

 

  

 

 

  

Noninterest-bearing demand(1)

 

$

599,657

 

$

569,693

 

$

602,252

 

$

518,155

Interest-bearing checking(1)

 

 

240,427

 

 

309,709

 

 

252,490

 

 

407,214

Savings(1)

 

 

1,081

 

 

1,090

 

 

725

 

 

698

Money market(1)

 

 

921,133

 

 

802,973

 

 

987,183

 

 

759,583

Time(1)

 

 

30,782

 

 

33,902

 

 

10,623

 

 

10,396

Brokered deposits

 

 

61,192

 

 

134,164

 

 

99,241

 

 

79,119

Deposits to be assumed - discontinued operations(1)

 

 

 —

 

 

 —

 

 

585,429

 

 

604,659

Total deposits

 

 

1,854,272

 

 

1,851,531

 

 

2,537,943

 

 

2,379,824

Federal funds purchased

 

 

57,000

 

 

35,000

 

 

 —

 

 

 —

Securities sold under agreements to repurchase - discontinued operations(1)

 

 

 —

 

 

 —

 

 

6,220

 

 

8,904

Federal Home Loan Bank borrowings

 

 

76,000

 

 

82,000

 

 

 —

 

 

83,000

Long-term debt

 

 

49,831

 

 

49,789

 

 

49,704

 

 

49,662

Other liabilities

 

 

44,384

 

 

34,645

 

 

37,920

 

 

41,094

Total liabilities

 

 

2,081,487

 

 

2,052,965

 

 

2,631,787

 

 

2,562,484

 

 

 

 

 

 

 

 

 

 

 

 

 

SHAREHOLDERS’ EQUITY

 

 

  

 

 

  

 

 

  

 

 

  

Preferred stock, no par value; 10,000,000 shares authorized; no shares issued and outstanding as of September 30, 2019,  June 30, 2019,  December 31, 2018  and September 30, 2018

 

 

 —

 

 

 —

 

 

 —

 

 

 —

Common stock, no par value; 100,000,000 shares authorized; 22,193,761, 23,293,465, 25,290,419, and 26,103,666 shares issued and outstanding as of September 30, 2019,  June 30, 2019,  December 31, 2018 and September 30, 2018; respectively

 

 

237,687

 

 

256,791

 

 

291,771

 

 

305,300

Retained earnings

 

 

84,529

 

 

76,343

 

 

42,187

 

 

33,357

Accumulated other comprehensive (loss) income

 

 

6,495

 

 

3,581

 

 

(10,305)

 

 

(18,420)

Total shareholders’ equity

 

 

328,711

 

 

336,715

 

 

323,653

 

 

320,237

TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY

 

$

2,410,198

 

$

2,389,680

 

$

2,955,440

 

$

2,882,721

 

(1)Assets and liabilities related to the sale of Tennessee and northwest Georgia banking operations were classified as held for sale as of December 31, 2018, and prior periods have been adjusted retrospectively.  (2)The allowance for loan losses has not been adjusted retrospectively for discontinued operations in periods prior to December 31, 2018.

 

6

ATLANTIC CAPITAL BANCSHARES, INC.

Consolidated Statements of Income (unaudited) (1)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(in thousands, except share and per share data)

 

Three months ended

 

Nine months ended

 

    

September 30, 

    

June 30, 

    

March 31, 

    

December 31, 

    

September 30, 

    

September 30, 

    

September 30, 

 

 

2019

 

2019

 

2019

 

2018

 

2018

 

2019

 

2018

INTEREST INCOME

 

 

  

 

 

  

 

 

  

 

 

  

 

 

  

 

 

  

 

 

  

Loans, including fees

 

$

23,541

 

$

23,554

 

$

22,752

 

$

22,752

 

$

20,117

 

$

69,847

 

$

57,358

Investment securities available-for-sale

 

 

2,176

 

 

2,339

 

 

2,631

 

 

2,844

 

 

2,789

 

 

7,146

 

 

8,068

Interest and dividends on other interest‑earning assets

 

 

803

 

 

705

 

 

814

 

 

1,032

 

 

1,111

 

 

2,322

 

 

2,706

Total interest income

 

 

26,520

 

 

26,598

 

 

26,197

 

 

26,628

 

 

24,017

 

 

79,315

 

 

68,132

INTEREST EXPENSE

 

 

  

 

 

  

 

 

  

 

 

  

 

 

  

 

 

  

 

 

  

Interest on deposits

 

 

5,223

 

 

5,448

 

 

4,831

 

 

4,185

 

 

3,182

 

 

15,502

 

 

8,321

Interest on Federal Home Loan Bank advances

 

 

390

 

 

270

 

 

 —

 

 

487

 

 

637

 

 

660

 

 

1,912

Interest on federal funds purchased and securities sold under agreements to repurchase

 

 

99

 

 

168

 

 

118

 

 

60

 

 

77

 

 

385

 

 

244

Interest on long-term debt

 

 

824

 

 

823

 

 

824

 

 

828

 

 

824

 

 

2,471

 

 

2,476

Total interest expense

 

 

6,536

 

 

6,709

 

 

5,773

 

 

5,560

 

 

4,720

 

 

19,018

 

 

12,953

NET INTEREST INCOME BEFORE PROVISION FOR LOAN LOSSES

 

 

19,984

 

 

19,889

 

 

20,424

 

 

21,068

 

 

19,297

 

 

60,297

 

 

55,179

Provision for loan losses

 

 

413

 

 

698

 

 

814

 

 

502

 

 

845

 

 

1,925

 

 

1,444

NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES

 

 

19,571

 

 

19,191

 

 

19,610

 

 

20,566

 

 

18,452

 

 

58,372

 

 

53,735

NONINTEREST INCOME

 

 

 

 

 

 

 

 

  

 

 

  

 

 

  

 

 

  

 

 

  

Service charges

 

 

925

 

 

870

 

 

794

 

 

876

 

 

804

 

 

2,589

 

 

2,339

Gains (losses) on sale of securities

 

 

253

 

 

654

 

 

 —

 

 

(1,853)

 

 

 —

 

 

907

 

 

(2)

Gains (losses) on sale of other assets

 

 

140

 

 

(10)

 

 

(3)

 

 

 —

 

 

58

 

 

127

 

 

(154)

Trust income

 

 

 —

 

 

 —

 

 

 —

 

 

 —

 

 

 —

 

 

 —

 

 

1,025

Derivatives income

 

 

(293)

 

 

(233)

 

 

(111)

 

 

154

 

 

20

 

 

(637)

 

 

154

Bank owned life insurance

 

 

422

 

 

389

 

 

360

 

 

380

 

 

379

 

 

1,171

 

 

1,126

SBA lending activities

 

 

1,150

 

 

1,096

 

 

1,086

 

 

425

 

 

882

 

 

3,332

 

 

3,181

Gain on sale of trust company

 

 

 —

 

 

 —

 

 

 —

 

 

 —

 

 

 —

 

 

 —

 

 

1,681

Other noninterest income

 

 

172

 

 

175

 

 

210

 

 

182

 

 

112

 

 

557

 

 

533

Total noninterest income

 

 

2,769

 

 

2,941

 

 

2,336

 

 

164

 

 

2,255

 

 

8,046

 

 

9,883

NONINTEREST EXPENSE

 

 

  

 

 

  

 

 

  

 

 

  

 

 

  

 

 

  

 

 

  

Salaries and employee benefits

 

 

8,295

 

 

8,529

 

 

9,213

 

 

7,573

 

 

7,332

 

 

26,037

 

 

24,193

Occupancy

 

 

722

 

 

689

 

 

639

 

 

655

 

 

732

 

 

2,050

 

 

2,317

Equipment and software

 

 

842

 

 

753

 

 

739

 

 

783

 

 

747

 

 

2,334

 

 

2,034

Professional services

 

 

764

 

 

792

 

 

775

 

 

947

 

 

796

 

 

2,331

 

 

2,564

Postage, printing and supplies

 

 

32

 

 

29

 

 

48

 

 

30

 

 

55

 

 

109

 

 

136

Communications and data processing

 

 

796

 

 

662

 

 

675

 

 

772

 

 

566

 

 

2,133

 

 

1,904

Marketing and business development

 

 

243

 

 

233

 

 

226

 

 

224

 

 

211

 

 

702

 

 

486

FDIC premiums

 

 

(193)

 

 

175

 

 

235

 

 

157

 

 

154

 

 

217

 

 

405

Other noninterest expense

 

 

1,176

 

 

1,392

 

 

1,245

 

 

1,067

 

 

1,279

 

 

3,813

 

 

3,744

Total noninterest expense

 

 

12,677

 

 

13,254

 

 

13,795

 

 

12,208

 

 

11,872

 

 

39,726

 

 

37,783

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

INCOME FROM CONTINUING OPERATIONS BEFORE PROVISION FOR INCOME TAXES

 

 

9,663

 

 

8,878

 

 

8,151

 

 

8,522

 

 

8,835

 

 

26,692

 

 

25,835

Provision for income taxes

 

 

2,094

 

 

1,869

 

 

1,711

 

 

1,039

 

 

1,837

 

 

5,674

 

 

5,268

NET INCOME FROM CONTINUING OPERATIONS

 

 

7,569

 

 

7,009

 

 

6,440

 

 

7,483

 

 

6,998

 

 

21,018

 

 

20,567

DISCONTINUED OPERATIONS

 

 

  

 

 

  

 

 

  

 

 

  

 

 

  

 

 

  

 

 

  

Income (loss) from discontinued operations

 

$

 —

 

$

30,107

 

$

(1,417)

 

$

1,796

 

$

(646)

 

$

28,690

 

$

(1,153)

Provision (benefit) for income taxes

 

 

(617)

 

 

7,964

 

 

(354)

 

 

449

 

 

(161)

 

 

6,993

 

 

(288)

Net income (loss) from discontinued operations

 

 

617

 

 

22,143

 

 

(1,063)

 

 

1,347

 

 

(485)

 

 

21,697

 

 

(865)

NET INCOME

 

$

8,186

 

$

29,152

 

$

5,377

 

$

8,830

 

$

6,513

 

$

42,715

 

$

19,702

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Income (Loss) per Common Share - Basic

 

 

  

 

 

  

 

 

  

 

 

  

 

 

  

 

 

  

 

 

  

Net income per common share - continuing operations

 

$

0.33

 

$

0.29

 

$

0.26

 

$

0.29

 

$

0.27

 

$

0.88

 

$

0.79

Net income (loss) per common share - discontinued operations

 

 

0.03

 

 

0.93

 

 

(0.04)

 

 

0.05

 

 

(0.02)

 

 

0.91

 

 

(0.03)

Net Income per Common Share - Basic

 

 

0.36

 

 

1.22

 

 

0.22

 

 

0.34

 

 

0.25

 

 

1.79

 

 

0.76

Net Income (Loss) per Common Share - Diluted

 

 

  

 

 

  

 

 

  

 

 

  

 

 

  

 

 

  

 

 

  

Net income per common share - continuing operations

 

$

0.33

 

$

0.29

 

$

0.26

 

$

0.29

 

$

0.27

 

$

0.88

 

$

0.79

Net income (loss) per common share - discontinued operations

 

 

0.03

 

 

0.92

 

 

(0.04)

 

 

0.05

 

 

(0.02)

 

 

0.91

 

 

(0.03)

Net Income per Common Share - Diluted

 

 

0.36

 

 

1.21

 

 

0.21

 

 

0.34

 

 

0.25

 

 

1.78

 

 

0.75

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average shares - basic

 

 

22,681,904

 

 

23,888,381

 

 

24,855,171

 

 

25,919,445

 

 

26,103,397

 

 

23,800,525

 

 

25,956,336

Weighted average shares - diluted

 

 

22,837,531

 

 

24,040,806

 

 

25,019,384

 

 

26,043,799

 

 

26,254,772

 

 

23,957,915

 

 

26,134,655

 

(1)Discontinued operations have been reported retrospectively for all periods presented.

 

7

ATLANTIC CAPITAL BANCSHARES, INC.

Average Balance Sheets and Net Interest Margin Analysis

Selected Financial Information

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three months ended

 

 

 

September 30, 2019

 

June 30, 2019

 

 

    

 

 

    

Interest

    

Tax

    

 

 

    

Interest

    

Tax

 

 

 

Average

 

Income/

 

Equivalent

 

Average

 

Income/

 

Equivalent

 

(dollars in thousands; taxable equivalent)

 

Balance

 

Expense

 

Yield/Rate

 

Balance

 

Expense

 

Yield/Rate

 

Assets

 

 

  

 

 

  

 

  

 

 

  

 

 

  

 

  

 

Interest bearing deposits in other banks

 

$

103,954

 

$

564

 

2.15

%  

$

70,628

 

$

450

 

2.56

%

Other short-term investments

 

 

 —

 

 

 —

 

 —

 

 

3,993

 

 

32

 

3.21

 

Investment securities:

 

 

  

 

 

  

 

  

 

 

  

 

 

  

 

  

 

Taxable investment securities

 

 

257,005

 

 

1,657

 

2.56

 

 

280,639

 

 

1,848

 

2.64

 

Non-taxable investment securities(1)

 

 

83,867

 

 

623

 

2.95

 

 

79,408

 

 

579

 

2.92

 

Total investment securities

 

 

340,872

 

 

2,280

 

2.65

 

 

360,047

 

 

2,427

 

2.70

 

Loans - continuing operations

 

 

1,801,629

 

 

23,541

 

5.18

 

 

1,769,803

 

 

23,554

 

5.34

 

FHLB and FRB stock

 

 

15,524

 

 

239

 

6.11

 

 

14,435

 

 

223

 

6.20

 

Total interest-earning assets - continuing operations

 

 

2,261,979

 

 

26,624

 

4.67

 

 

2,218,906

 

 

26,686

 

4.82

 

Loans held for sale - discontinued operations

 

 

 —

 

 

 —

 

 —

 

 

30,198

 

 

47

 

0.62

 

Total interest-earning assets

 

 

2,261,979

 

 

26,624

 

4.67

 

 

2,249,104

 

 

26,733

 

4.77

 

Non-earning assets

 

 

191,459

 

 

  

 

  

 

 

191,398

 

 

  

 

  

 

Total assets

 

$

2,453,438

 

 

  

 

  

 

$

2,440,502

 

 

  

 

  

 

Liabilities

 

 

  

 

 

  

 

  

 

 

  

 

 

  

 

  

 

Interest bearing deposits:

 

 

  

 

 

  

 

  

 

 

  

 

 

  

 

  

 

NOW, money market, and savings

 

 

1,191,293

 

 

4,642

 

1.55

 

 

1,175,237

 

 

4,733

 

1.62

 

Time deposits

 

 

32,409

 

 

51

 

0.62

 

 

32,358

 

 

50

 

0.62

 

Brokered deposits

 

 

88,146

 

 

530

 

2.39

 

 

106,524

 

 

665

 

2.50

 

Total interest-bearing deposits

 

 

1,311,848

 

 

5,223

 

1.58

 

 

1,314,119

 

 

5,448

 

1.66

 

Total borrowings

 

 

85,478

 

 

489

 

2.27

 

 

70,770

 

 

438

 

2.48

 

Total long-term debt

 

 

49,803

 

 

824

 

6.56

 

 

49,761

 

 

823

 

6.63

 

Total interest-bearing liabilities - continuing operations

 

 

1,447,129

 

 

6,536

 

1.79

 

 

1,434,650

 

 

6,709

 

1.88

 

Interest-bearing liabilities - discontinued operations

 

 

 —

 

 

 —

 

 —

 

 

36,255

 

 

86

 

0.95

 

Total interest-bearing liabilities

 

 

1,447,129

 

 

6,536

 

1.79

 

 

1,470,905

 

 

6,795

 

1.85

 

Demand deposits

 

 

637,809

 

 

  

 

  

 

 

587,957

 

 

  

 

  

 

Demand deposits - discontinued operations

 

 

 —

 

 

  

 

  

 

 

9,851

 

 

  

 

  

 

Other liabilities

 

 

36,209

 

 

  

 

  

 

 

31,670

 

 

  

 

  

 

Shareholders’ equity

 

 

332,291

 

 

  

 

  

 

 

340,119

 

 

  

 

  

 

Total liabilities and shareholders’ equity

 

$

2,453,438

 

 

 

 

  

 

$

2,440,502

 

 

  

 

  

 

Net interest spread - continuing operations

 

 

  

 

 

 

 

2.88

%  

 

  

 

 

  

 

2.94

%

Net interest income and net interest margin - continuing operations(2)

 

 

  

 

$

20,088

 

3.52

%  

 

  

 

$

19,977

 

3.61

%

Net interest income and net interest margin(2)

 

 

  

 

$

20,088

 

3.52

%  

 

  

 

$

19,938

 

3.56

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-taxable equivalent net interest margin

 

 

  

 

 

  

 

3.51

%  

 

  

 

 

  

 

3.54

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1) Interest revenue on tax-exempt securities has been increased to reflect comparable interest on taxable securities. The rate used was 21%, reflecting the statutory federal income tax rate.

(2) Tax equivalent net interest income divided by total interest-earning assets using the appropriate day count convention based on the type of interest-earning asset.

 

8

ATLANTIC CAPITAL BANCSHARES, INC.

Average Balance Sheets and Net Interest Margin Analysis

Selected Financial Information

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three months ended

 

 

 

September 30, 2019

 

September 30, 2018

 

 

    

 

 

    

Interest

    

Tax

    

 

 

    

Interest

    

Tax

 

 

 

Average

 

Income/

 

Equivalent

 

Average

 

Income/

 

Equivalent

 

(dollars in thousands; taxable equivalent)

 

Balance

 

Expense

 

Yield/Rate

 

Balance

 

Expense

 

Yield/Rate

 

Assets

 

 

  

 

 

  

 

  

 

 

  

 

 

  

 

  

 

Interest bearing deposits in other banks

 

$

103,954

 

$

564

 

2.15

%  

$

128,248

 

$

647

 

2.00

%

Other short-term investments

 

 

 —

 

 

 —

 

 —

 

 

21,985

 

 

157

 

2.83

 

Investment securities:

 

 

  

 

 

  

 

  

 

 

  

 

 

  

 

  

 

Taxable investment securities

 

 

257,005

 

 

1,657

 

2.56

 

 

385,834

 

 

2,315

 

2.38

 

Non-taxable investment securities(1)

 

 

83,867

 

 

623

 

2.95

 

 

75,514

 

 

571

 

3.00

 

Total investment securities

 

 

340,872

 

 

2,280

 

2.65

 

 

461,348

 

 

2,886

 

2.48

 

Loans - continuing operations

 

 

1,801,629

 

 

23,541

 

5.18

 

 

1,583,459

 

 

20,117

 

5.04

 

FHLB and FRB stock

 

 

15,524

 

 

239

 

6.11

 

 

17,624

 

 

307

 

6.91

 

Total interest-earning assets - continuing operations

 

 

2,261,979

 

 

26,624

 

4.67

 

 

2,212,664

 

 

24,114

 

4.32

 

Loans held for sale - discontinued operations

 

 

 —

 

 

 —

 

 —

 

 

380,358

 

 

4,502

 

4.70

 

Total interest-earning assets

 

 

2,261,979

 

 

26,624

 

4.67

 

 

2,593,022

 

 

28,616

 

4.38

 

Non-earning assets

 

 

191,459

 

 

  

 

  

 

 

212,718

 

 

  

 

  

 

Total assets

 

$

2,453,438

 

 

  

 

  

 

$

2,805,740

 

 

  

 

  

 

Liabilities

 

 

  

 

 

  

 

  

 

 

  

 

 

  

 

  

 

Interest bearing deposits:

 

 

  

 

 

  

 

  

 

 

  

 

 

  

 

  

 

NOW, money market, and savings

 

 

1,191,293

 

 

4,642

 

1.55

 

 

1,012,953

 

 

2,791

 

1.09

 

Time deposits

 

 

32,409

 

 

51

 

0.62

 

 

10,406

 

 

30

 

1.14

 

Brokered deposits

 

 

88,146

 

 

530

 

2.39

 

 

67,937

 

 

361

 

2.11

 

Total interest-bearing deposits

 

 

1,311,848

 

 

5,223

 

1.58

 

 

1,091,296

 

 

3,182

 

1.16

 

Total borrowings

 

 

85,478

 

 

489

 

2.27

 

 

134,609

 

 

714

 

2.10

 

Total long-term debt

 

 

49,803

 

 

824

 

6.56

 

 

49,634

 

 

824

 

6.59

 

Total interest-bearing liabilities - continuing operations

 

 

1,447,129

 

 

6,536

 

1.79

 

 

1,275,539

 

 

4,720

 

1.47

 

Interest-bearing liabilities - discontinued operations

 

 

 —

 

 

 —

 

 —

 

 

473,388

 

 

1,236

 

1.04

 

Total interest-bearing liabilities

 

 

1,447,129

 

 

6,536

 

1.79

 

 

1,748,927

 

 

5,956

 

1.35

 

Demand deposits

 

 

637,809

 

 

  

 

  

 

 

561,355

 

 

  

 

  

 

Demand deposits - discontinued operations

 

 

 —

 

 

  

 

  

 

 

136,572

 

 

  

 

  

 

Other liabilities

 

 

36,209

 

 

  

 

  

 

 

38,796

 

 

  

 

  

 

Shareholders’ equity

 

 

332,291

 

 

  

 

  

 

 

320,090

 

 

  

 

  

 

Total liabilities and shareholders’ equity

 

$

2,453,438

 

 

  

 

  

 

$

2,805,740

 

 

  

 

  

 

Net interest spread - continuing operations

 

 

  

 

 

  

 

2.88

%  

 

  

 

 

  

 

2.85

%

Net interest income and net interest margin - continuing operations(2)

 

 

  

 

$

20,088

 

3.52

%  

 

  

 

$

19,394

 

3.48

%

Net interest income and net interest margin(2)

 

 

  

 

$

20,088

 

3.52

%  

 

  

 

$

22,660

 

3.47

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-taxable equivalent net interest margin

 

 

  

 

 

  

 

3.51

%  

 

  

 

 

  

 

3.45

%

(1) Interest revenue on tax-exempt securities has been increased to reflect comparable interest on taxable securities. The rate used was 21%, reflecting the statutory federal income tax rate.

(2) Tax equivalent net interest income divided by total interest-earning assets using the appropriate day count convention based on the type of interest-earning asset.

 

9

ATLANTIC CAPITAL BANCSHARES, INC.

Average Balance Sheets and Net Interest Margin Analysis

Selected Financial Information

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Nine months ended

 

 

 

September 30, 2019

 

September 30, 2018

 

 

    

 

 

    

Interest

    

Tax

    

 

 

    

Interest

    

Tax

 

 

 

Average

 

Income/

 

Equivalent

 

Average

 

Income/

 

Equivalent

 

(dollars in thousands; taxable equivalent)

 

Balance

 

Expense

 

Yield/Rate

 

Balance

 

Expense

 

Yield/Rate

 

Assets

 

 

  

 

 

  

 

  

 

 

  

 

 

  

 

  

 

Interest bearing deposits in other banks

 

$

88,960

 

$

1,477

 

2.22

%  

$

101,502

 

$

1,606

 

2.12

%

Other short-term investments

 

 

5,181

 

 

118

 

3.05

 

 

13,907

 

 

284

 

2.73

 

Investment securities:

 

 

  

 

 

  

 

 

 

 

  

 

 

  

 

  

 

Taxable investment securities

 

 

284,978

 

 

5,619

 

2.64

 

 

380,002

 

 

6,643

 

2.34

 

Non-taxable investment securities(1)

 

 

81,812

 

 

1,819

 

2.97

 

 

76,658

 

 

1,723

 

3.01

 

Total investment securities

 

 

366,790

 

 

7,438

 

2.71

 

 

456,660

 

 

8,366

 

2.45

 

Loans - continuing operations

 

 

1,739,917

 

 

69,847

 

5.37

 

 

1,553,609

 

 

57,358

 

4.94

 

FHLB and FRB stock

 

 

14,173

 

 

727

 

6.86

 

 

18,291

 

 

816

 

5.96

 

Total interest-earning assets - continuing operations

 

 

2,215,021

 

 

79,607

 

4.81

 

 

2,143,969

 

 

68,430

 

4.27

 

Loans held for sale - discontinued operations

 

 

156,060

 

 

4,588

 

3.93

 

 

389,760

 

 

13,714

 

4.70

 

Total interest-earning assets

 

 

2,371,081

 

 

84,195

 

4.75

 

 

2,533,729

 

 

82,144

 

4.33

 

Non-earning assets

 

 

201,880

 

 

  

 

  

 

 

209,518

 

 

  

 

  

 

Total assets

 

$

2,572,961

 

 

  

 

  

 

$

2,743,247

 

 

  

 

  

 

Liabilities

 

 

  

 

 

  

 

  

 

 

  

 

 

  

 

  

 

Interest bearing deposits:

 

 

  

 

 

  

 

  

 

 

  

 

 

  

 

  

 

NOW, money market, and savings

 

 

1,147,508

 

 

13,630

 

1.59

 

 

974,678

 

 

7,028

 

0.96

 

Time deposits

 

 

18,246

 

 

139

 

1.02

 

 

10,075

 

 

82

 

1.09

 

Brokered deposits

 

 

91,963

 

 

1,733

 

2.52

 

 

80,920

 

 

1,212

 

2.00

 

Total interest-bearing deposits

 

 

1,257,717

 

 

15,502

 

1.65

 

 

1,065,673

 

 

8,322

 

1.04

 

Total borrowings

 

 

57,844

 

 

1,045

 

2.42

 

 

155,701

 

 

2,155

 

1.85

 

Total long-term debt

 

 

49,761

 

 

2,471

 

6.64

 

 

49,592

 

 

2,476

 

6.68

 

Total interest-bearing liabilities - continuing operations

 

 

1,365,322

 

 

19,018

 

1.86

 

 

1,270,966

 

 

12,953

 

1.36

 

Interest-bearing liabilities - discontinued operations

 

 

192,613

 

 

1,502

 

1.04

 

 

465,339

 

 

2,800

 

0.80

 

Total interest-bearing liabilities

 

 

1,557,935

 

 

20,520

 

1.76

 

 

1,736,305

 

 

15,753

 

1.21

 

Demand deposits

 

 

593,957

 

 

  

 

  

 

 

518,186

 

 

  

 

  

 

Demand deposits - discontinued operations

 

 

52,481

 

 

  

 

  

 

 

138,621

 

 

  

 

  

 

Other liabilities

 

 

37,472

 

 

  

 

  

 

 

36,935

 

 

  

 

  

 

Shareholders’ equity

 

 

331,116

 

 

  

 

  

 

 

313,200

 

 

  

 

  

 

Total liabilities and shareholders’ equity

 

$

2,572,961

 

 

  

 

  

 

$

2,743,247

 

 

  

 

  

 

Net interest spread - continuing operations

 

 

  

 

 

  

 

2.95

%  

 

  

 

 

  

 

2.91

%

Net interest income and net interest margin - continuing operations(2)

 

 

  

 

$

60,589

 

3.66

%  

 

  

 

$

55,477

 

3.46

%

Net interest income and net interest margin(2)

 

 

  

 

$

63,675

 

3.59

%  

 

  

 

$

66,391

 

3.50

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-taxable equivalent net interest margin

 

 

  

 

 

  

 

3.57

%  

 

  

 

 

  

 

3.49

%

(1) Interest revenue on tax-exempt securities has been increased to reflect comparable interest on taxable securities. The rate used was 21%, reflecting the statutory federal income tax rate.

(2) Tax equivalent net interest income divided by total interest-earning assets using the appropriate day count convention based on the type of interest-earning asset.

 

10

ATLANTIC CAPITAL BANCSHARES, INC.

Period End Loans(1)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

    

 

    

 

    

 

    

 

    

 

    

Linked

    

Year Over

 

 

September 30,

 

June 30,

 

March 31,

 

December 31,

 

September 30,

 

Quarter

 

Year

(dollars in thousands)

 

2019

 

2019

 

2019

 

2018

 

2018

 

Change

 

Change

Loans held for sale

 

 

  

 

 

  

 

 

  

 

 

  

 

 

  

 

 

  

 

 

  

Loans held for sale

 

$

916

 

$

 —

 

$

1,530

 

$

5,889

 

$

1,886

 

$

916

 

$

(970)

Loans held for sale - discontinued operations

 

 

 —

 

 

 —

 

 

384,779

 

 

373,030

 

 

375,976

 

 

 —

 

 

(375,976)

Total loans held for sale

 

$

916

 

$

 —

 

$

386,309

 

$

378,919

 

$

377,862

 

$

916

 

$

(376,946)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loans held for investment

 

 

  

 

 

  

 

 

  

 

 

  

 

 

  

 

 

  

 

 

  

Commercial loans:

 

 

  

 

 

  

 

 

  

 

 

  

 

 

  

 

 

  

 

 

  

Commercial and industrial

 

$

697,412

 

$

701,566

 

$

679,489

 

$

645,374

 

$

581,737

 

$

(4,154)

 

$

115,675

Commercial real estate:

 

 

  

 

 

  

 

 

  

 

 

  

 

 

  

 

 

  

 

 

  

Multifamily

 

 

60,398

 

 

43,907

 

 

43,929

 

 

88,826

 

 

108,001

 

 

16,491

 

 

(47,603)

Owner occupied

 

 

352,842

 

 

313,310

 

 

304,945

 

 

298,291

 

 

295,801

 

 

39,532

 

 

57,041

Investment

 

 

452,285

 

 

409,629

 

 

394,087

 

 

407,711

 

 

409,145

 

 

42,656

 

 

43,140

Construction and land:

 

 

  

 

 

  

 

 

  

 

 

  

 

 

  

 

 

  

 

 

  

1‑4 family residential construction

 

 

5,186

 

 

3,696

 

 

2,067

 

 

1,006

 

 

 —

 

 

1,490

 

 

5,186

Other construction, development, and land

 

 

139,991

 

 

195,260

 

 

171,818

 

 

155,226

 

 

147,114

 

 

(55,269)

 

 

(7,123)

Mortgage warehouse loans

 

 

23,256

 

 

10,665

 

 

22,267

 

 

27,967

 

 

27,838

 

 

12,591

 

 

(4,582)

Total commercial loans

 

 

1,731,370

 

 

1,678,033

 

 

1,618,602

 

 

1,624,401

 

 

1,569,636

 

 

53,337

 

 

161,734

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Residential:

 

 

  

 

 

  

 

 

  

 

 

  

 

 

  

 

 

  

 

 

  

Residential mortgages

 

 

31,903

 

 

31,338

 

 

32,915

 

 

32,800

 

 

24,904

 

 

565

 

 

6,999

Home equity

 

 

25,638

 

 

24,303

 

 

23,171

 

 

22,822

 

 

33,410

 

 

1,335

 

 

(7,772)

Total residential loans

 

 

57,541

 

 

55,641

 

 

56,086

 

 

55,622

 

 

58,314

 

 

1,900

 

 

(773)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Consumer

 

 

27,168

 

 

34,618

 

 

35,203

 

 

25,851

 

 

26,825

 

 

(7,450)

 

 

343

Other

 

 

22,533

 

 

24,126

 

 

26,663

 

 

24,712

 

 

10,579

 

 

(1,593)

 

 

11,954

 

 

 

1,838,612

 

 

1,792,418

 

 

1,736,554

 

 

1,730,586

 

 

1,665,354

 

 

46,194

 

 

173,258

Less net deferred fees and other unearned income

 

 

(2,939)

 

 

(2,678)

 

 

(1,997)

 

 

(2,513)

 

 

(2,896)

 

 

(261)

 

 

(43)

Total loans held for investment

 

$

1,835,673

 

$

1,789,740

 

$

1,734,557

 

$

1,728,073

 

$

1,662,458

 

$

45,933

 

$

173,215

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total loans

 

$

1,836,589

 

$

1,789,740

 

$

2,120,866

 

$

2,106,992

 

$

2,040,320

 

$

46,849

 

$

(203,731)

 

(1) Loans held for sale-discontinued operations and loans held for investment have been adjusted retrospectively for all periods prior to December 31, 2018.

 

11

ATLANTIC CAPITAL BANCSHARES, INC.

Allowance for Loan Losses Activity and Credit Quality

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2019

 

2018

 

    

Third

    

Second

    

First

    

Fourth

    

Third

(dollars in thousands)

 

Quarter

 

Quarter

 

Quarter

 

Quarter

 

Quarter

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance at beginning of period

 

$

18,186

 

$

18,107

 

$

17,851

 

$

20,443

 

$

19,583

Provision for loan losses

 

 

413

 

 

698

 

 

814

 

 

595

 

 

758

Provision for loan losses (reversal of provision) - discontinued operations

 

 

 —

 

 

 —

 

 

 —

 

 

(3,097)

 

 

 —

Provision for PCI loan losses

 

 

 —

 

 

 —

 

 

 —

 

 

(93)

 

 

87

Loans charged-off:

 

 

  

 

 

  

 

 

  

 

 

  

 

 

  

Commercial and industrial

 

 

(541)

 

 

(588)

 

 

(549)

 

 

 —

 

 

 —

Commercial real estate

 

 

 —

 

 

(47)

 

 

 —

 

 

 —

 

 

 —

Construction and land

 

 

 —

 

 

 —

 

 

 —

 

 

 —

 

 

 —

Residential mortgages

 

 

 —

 

 

 —

 

 

(9)

 

 

(5)

 

 

 —

Home equity

 

 

 —

 

 

 —

 

 

 —

 

 

 —

 

 

 —

Consumer

 

 

(2)

 

 

 —

 

 

(37)

 

 

(3)

 

 

 —

Other

 

 

 —

 

 

 —

 

 

 —

 

 

 —

 

 

 —

Total loans charged-off

 

 

(543)

 

 

(635)

 

 

(595)

 

 

(8)

 

 

 —

Recoveries on loans previously charged-off:

 

 

  

 

 

  

 

 

  

 

 

  

 

 

  

Commercial and industrial

 

 

17

 

 

 —

 

 

14

 

 

 —

 

 

 —

Commercial real estate

 

 

 —

 

 

 —

 

 

 —

 

 

 —

 

 

 —

Construction and land

 

 

 1

 

 

 —

 

 

 3

 

 

 —

 

 

 —

Residential mortgages

 

 

 —

 

 

 —

 

 

 7

 

 

 4

 

 

 —

Home equity

 

 

 —

 

 

 —

 

 

 1

 

 

 —

 

 

 —

Consumer

 

 

 6

 

 

16

 

 

12

 

 

 7

 

 

15

Other

 

 

 —

 

 

 —

 

 

 —

 

 

 —

 

 

 —

Total recoveries

 

 

24

 

 

16

 

 

37

 

 

11

 

 

15

Net charge-offs

 

$

(519)

 

$

(619)

 

$

(558)

 

$

 3

 

$

15

Balance at period end (1)

 

$

18,080

 

$

18,186

 

$

18,107

 

$

17,851

 

$

20,443

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loans

 

 

  

 

 

  

 

 

  

 

 

  

 

 

  

Loans held for sale

 

$

916

 

$

 —

 

$

1,530

 

$

5,889

 

$

1,886

Loans held for sale - discontinued operations

 

 

 —

 

 

 —

 

 

384,779

 

 

373,030

 

 

375,976

Loans held for investment - continuing operations

 

 

1,835,673

 

 

1,789,740

 

 

1,734,557

 

 

1,728,073

 

 

1,662,458

Total loans

 

$

1,836,589

 

$

1,789,740

 

$

2,120,866

 

$

2,106,992

 

$

2,040,320

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-performing loans - continuing operations (4)

 

$

6,770

 

$

6,352

 

$

8,830

 

$

3,252

 

$

2,160

Non-performing loans - discontinued operations (4)

 

 

 —

 

 

 —

 

 

1,506

 

 

1,924

 

 

556

Total non-performing loans

 

 

6,770

 

 

6,352

 

 

10,336

 

 

5,176

 

 

2,716

Foreclosed properties (OREO)

 

 

278

 

 

971

 

 

971

 

 

874

 

 

968

Total nonperforming assets

 

$

7,048

 

$

7,323

 

$

11,307

 

$

6,050

 

$

3,684

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Allowance for loan losses to loans held for investment (2)

 

 

0.98

%  

 

1.02

%  

 

1.04

 

 

1.03

%  

 

1.00

Net charge-offs to average loans (3)

 

 

0.11

 

 

0.14

 

 

0.11

 

 

 —

 

 

 —

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-performing loans as a percentage of total loans - continuing operations (4)

 

 

0.37

%  

 

0.35

%  

 

0.51

 

 

0.19

%  

 

0.13

Non-performing loans as a percentage of total loans - discontinued operations (4)

 

 

 —

 

 

 —

 

 

0.39

 

 

0.52

 

 

0.15

Non-performing loans as a percentage of total loans (4)

 

 

0.37

 

 

0.35

 

 

0.49

 

 

0.25

 

 

0.13

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-performing assets as a percentage of total assets - continuing operations (4)

 

 

0.29

%  

 

0.31

%  

 

0.34

%  

 

0.14

%  

 

0.11

Non-performing assets as a percentage of total assets - discontinued operations (4)

 

 

 —

 

 

 —

 

 

0.05

 

 

0.07

 

 

0.02

Non-performing assets as a percentage of total assets (4)

 

 

0.29

 

 

0.31

 

 

0.40

 

 

0.20

 

 

0.13

 

(1) The allowance for loan losses has not been adjusted retrospectively for periods prior to December 31, 2018.  (2)The third quarter of 2019, the second quarter of 2019, the first quarter of 2019 and the fourth quarter of 2018 ratios are calculated on a continuing operations basis.  Ratios prior to December 31, 2018 have not been retroactively adjusted for the impact of discontinued operations.  (3)Annualized.  (4)Excludes non-performing PCI loans.

 

12

ATLANTIC CAPITAL BANCSHARES, INC.

Period End Deposits

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

Linked

    

 

 

 

 

September 30, 

 

June 30, 

 

March 31, 

 

December 31, 

 

September 30, 

 

Quarter

 

Year Over

(dollars in thousands)

 

2019

 

2019

 

2019

 

2018

 

2018

 

Change

 

Year Change

DDA

 

$

599,657

 

$

569,693

 

$

561,829

 

$

602,252

 

$

518,155

 

$

29,964

 

$

81,502

NOW

 

 

240,427

 

 

309,709

 

 

233,838

 

 

252,490

 

 

407,214

 

 

(69,282)

 

 

(166,787)

Savings

 

 

1,081

 

 

1,090

 

 

896

 

 

725

 

 

698

 

 

(9)

 

 

383

Money market

 

 

921,133

 

 

802,973

 

 

962,741

 

 

987,183

 

 

759,583

 

 

118,160

 

 

161,550

Time

 

 

30,782

 

 

33,902

 

 

22,069

 

 

10,623

 

 

10,396

 

 

(3,120)

 

 

20,386

Brokered

 

 

61,192

 

 

134,164

 

 

65,811

 

 

99,241

 

 

79,119

 

 

(72,972)

 

 

(17,927)

Total deposits - continuing operations

 

 

1,854,272

 

 

1,851,531

 

 

1,847,184

 

 

1,952,514

 

 

1,775,165

 

 

2,741

 

 

79,107

Deposits to be assumed - discontinued operations

 

 

 —

 

 

 —

 

 

593,264

 

 

585,429

 

 

604,659

 

 

 —

 

 

(604,659)

Total deposits

 

$

1,854,272

 

$

1,851,531

 

$

2,440,448

 

$

2,537,943

 

$

2,379,824

 

$

2,741

 

$

(525,552)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Payments clients

 

$

286,373

 

$

301,413

 

$

361,192

 

$

397,608

 

$

258,320

 

$

(15,040)

 

$

28,053

 

Average Deposits

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

    

2019

    

2018

    

Linked

    

 

 

 

Third

 

Second

 

First

 

Fourth

 

Third

 

Quarter

 

Q3 2019 vs

(dollars in thousands)

 

Quarter

 

Quarter

 

Quarter

 

Quarter

 

Quarter

 

Change

 

Q3 2018

DDA

 

$

637,809

 

$

587,957

 

$

575,453

 

$

597,239

 

$

561,355

 

$

49,852

 

$

76,454

NOW

 

 

295,106

 

 

314,601

 

 

276,212

 

 

280,449

 

 

314,759

 

 

(19,495)

 

 

(19,653)

Savings

 

 

1,085

 

 

956

 

 

884

 

 

712

 

 

616

 

 

129

 

 

469

Money market

 

 

895,102

 

 

859,680

 

 

847,254

 

 

798,017

 

 

697,578

 

 

35,422

 

 

197,524

Time

 

 

32,409

 

 

32,358

 

 

12,847

 

 

10,117

 

 

10,406

 

 

51

 

 

22,003

Brokered

 

 

88,146

 

 

106,524

 

 

81,141

 

 

93,558

 

 

67,937

 

 

(18,378)

 

 

20,209

Total deposits - continuing operations

 

 

1,949,657

 

 

1,902,076

 

 

1,793,791

 

 

1,780,092

 

 

1,652,651

 

 

47,581

 

 

297,006

Deposits to be assumed - discontinued operations

 

 

 —

 

 

45,350

 

 

593,313

 

 

600,769

 

 

601,421

 

 

(45,350)

 

 

(601,421)

Total deposits

 

$

1,949,657

 

$

1,947,426

 

$

2,387,104

 

$

2,380,861

 

$

2,254,072

 

$

2,231

 

$

(304,415)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Payments clients

 

$

289,526

 

$

285,949

 

$

295,059

 

$

263,800

 

$

227,029

 

$

3,577

 

$

62,497

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Noninterest bearing deposits as a percentage of average deposits - continuing operations

 

 

32.7

%  

 

30.9

%  

 

32.1

%  

 

33.6

%  

 

34.0

%  

 

  

 

 

  

Cost of deposits - continuing operations

 

 

1.06

%  

 

1.15

%  

 

1.09

%  

 

0.93

%  

 

0.76

%  

 

  

 

 

  

 

 

13

ATLANTIC CAPITAL BANCSHARES, INC.

Non-GAAP Performance and Financial Measures Reconciliation

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

For the nine months

 

 

 

2019

2018

ended September 30, 

 

 

    

Third

    

Second

    

First

    

Fourth

    

Third

    

 

 

    

 

 

 

(in thousands, except share and per share data)

 

Quarter

 

Quarter

 

Quarter

 

Quarter

 

Quarter

 

2019

2018

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Taxable equivalent interest income reconciliation

 

 

  

 

 

  

 

 

  

 

 

  

 

 

  

 

 

  

 

 

  

 

Interest income - GAAP

 

$

26,520

 

$

26,598

 

$

26,197

 

$

26,628

 

$

24,017

 

$

79,315

 

$

68,132

 

Taxable equivalent adjustment

 

 

104

 

 

88

 

 

100

 

 

97

 

 

97

 

 

292

 

 

298

 

Interest income - taxable equivalent

 

$

26,624

 

$

26,686

 

$

26,297

 

$

26,725

 

$

24,114

 

$

79,607

 

$

68,430

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Taxable equivalent net interest income reconciliation

 

 

  

 

 

  

 

 

  

 

 

  

 

 

  

 

 

  

 

 

  

 

Net interest income - GAAP

 

$

19,984

 

$

19,889

 

$

20,424

 

$

21,068

 

$

19,297

 

$

60,297

 

$

55,179

 

Taxable equivalent adjustment

 

 

104

 

 

88

 

 

100

 

 

97

 

 

97

 

 

292

 

 

298

 

Net interest income - taxable equivalent

 

$

20,088

 

$

19,977

 

$

20,524

 

$

21,165

 

$

19,394

 

$

60,589

 

$

55,477

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Taxable equivalent net interest margin reconciliation - continuing operations

 

 

  

 

 

  

 

 

  

 

 

  

 

 

  

 

 

  

 

 

  

 

Net interest margin - GAAP - continuing operations

 

 

3.51

%  

 

3.60

%  

 

3.72

%  

 

3.64

%  

 

3.46

%  

 

3.64

%  

 

3.44

%

Impact of taxable equivalent adjustment

 

 

0.01

 

 

0.01

 

 

0.02

 

 

0.02

 

 

0.02

 

 

0.02

 

 

0.02

 

Net interest margin - taxable equivalent - continuing operations

 

 

3.52

%  

 

3.61

%  

 

3.74

%  

 

3.66

%  

 

3.48

%  

 

3.66

%  

 

3.46

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Taxable equivalent net interest margin reconciliation

 

 

  

 

 

  

 

 

  

 

 

  

 

 

  

 

 

  

 

 

  

 

Net interest margin - GAAP

 

 

3.51

%  

 

3.54

%  

 

3.66

%  

 

3.60

%  

 

3.45

%  

 

3.57

%  

 

3.49

%

Impact of taxable equivalent adjustment

 

 

0.01

 

 

0.02

 

 

0.02

 

 

0.02

 

 

0.02

 

 

0.02

 

 

0.01

 

Net interest margin - taxable equivalent

 

 

3.52

%  

 

3.56

%  

 

3.68

%  

 

3.62

%  

 

3.47

%  

 

3.59

%  

 

3.50

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income before income taxes reconciliation

 

 

  

 

 

  

 

 

  

 

 

  

 

 

  

 

 

  

 

 

  

 

Income before income taxes - GAAP

 

$

9,663

 

$

8,878

 

$

8,151

 

$

8,522

 

$

8,835

 

$

26,692

 

$

25,835

 

Taxable equivalent adjustment

 

 

104

 

 

88

 

 

100

 

 

97

 

 

97

 

 

292

 

 

298

 

Income before income taxes

 

$

9,767

 

$

8,966

 

$

8,251

 

$

8,619

 

$

8,932

 

$

26,984

 

$

26,133

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income tax reconciliation

 

 

  

 

 

  

 

 

  

 

 

  

 

 

  

 

 

  

 

 

  

 

Income tax expense - GAAP

 

$

2,094

 

$

1,869

 

$

1,711

 

$

1,039

 

$

1,837

 

$

5,674

 

$

5,268

 

Taxable equivalent adjustment

 

 

104

 

 

88

 

 

100

 

 

97

 

 

97

 

 

292

 

 

298

 

Income tax expense

 

$

2,198

 

$

1,957

 

$

1,811

 

$

1,136

 

$

1,934

 

$

5,966

 

$

5,566

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Tangible book value per common share reconciliation

 

 

  

 

 

  

 

 

  

 

 

  

 

 

  

 

 

  

 

 

  

 

Total shareholders’ equity

 

$

328,711

 

$

336,715

 

$

320,627

 

$

323,653

 

$

320,237

 

$

328,711

 

$

320,237

 

Intangible assets

 

 

(19,925)

 

 

(19,925)

 

 

(22,848)

 

 

(23,095)

 

 

(23,367)

 

 

(19,925)

 

 

(23,367)

 

Total tangible common equity

 

$

308,786

 

$

316,790

 

$

297,779

 

$

300,558

 

$

296,870

 

$

308,786

 

$

296,870

 

Common shares outstanding

 

 

22,193,761

 

 

23,293,465

 

 

24,466,964

 

 

25,290,419

 

 

26,103,666

 

 

22,193,761

 

 

26,103,666

 

Book value per common share - GAAP

 

$

14.81

 

$

14.46

 

$

13.10

 

$

12.80

 

$

12.27

 

$

14.81

 

$

12.27

 

Tangible book value

 

 

13.91

 

 

13.60

 

 

12.17

 

 

11.88

 

 

11.37

 

 

13.91

 

 

11.37

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Tangible common equity to tangible assets reconciliation

 

 

  

 

 

  

 

 

  

 

 

  

 

 

  

 

 

  

 

 

  

 

Total shareholders’ equity

 

$

328,711

 

$

336,715

 

$

320,627

 

$

323,653

 

$

320,237

 

$

328,711

 

$

320,237

 

Intangible assets

 

 

(19,925)

 

 

(19,925)

 

 

(22,848)

 

 

(23,095)

 

 

(23,367)

 

 

(19,925)

 

 

(23,367)

 

Total tangible common equity

 

$

308,786

 

$

316,790

 

$

297,779

 

$

300,558

 

$

296,870

 

$

308,786

 

$

296,870

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total assets

 

$

2,410,198

 

$

2,389,680

 

$

2,855,887

 

$

2,955,440

 

$

2,882,721

 

$

2,410,198

 

$

2,882,721

 

Intangible assets

 

 

(19,925)

 

 

(19,925)

 

 

(22,848)

 

 

(23,095)

 

 

(23,367)

 

 

(19,925)

 

 

(23,367)

 

Total tangible assets

 

$

2,390,273

 

$

2,369,755

 

$

2,833,039

 

$

2,932,345

 

$

2,859,354

 

$

2,390,273

 

$

2,859,354

 

Tangible common equity to tangible assets

 

 

12.92

%  

 

13.37

%  

 

10.51

%  

 

10.25

%  

 

10.38

%  

 

12.92

%  

 

10.38

%

 

 

14