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home / news releases / ACBI - Atlantic Capital Bancshares Inc. Reports Fourth Quarter 2021 Results

ACBI - Atlantic Capital Bancshares Inc. Reports Fourth Quarter 2021 Results

Atlantic Capital Bancshares Inc.

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
Non-taxable investment securities (1)
227,501
7,573
3.33
202,623
6,845
3.38
Total investment securities
682,967
16,718
2.45
456,422
13,161
2.88
Loans
2,263,335
89,647
3.96
2,105,930
85,580
4.06
FHLB and FRB stock
12,129
602
4.96
14,172
836
5.90
Total interest-earning assets
3,604,564
108,132
3.00
2,796,776
100,474
3.59
Non-earning assets
186,479
185,446
Total assets
$
3,791,043
$
2,982,222
Liabilities
Interest bearing deposits:
NOW, money market, and savings
1,622,596
2,692
0.17
1,444,699
6,931
0.48
Time deposits
284,385
236
0.08
135,309
269
0.20
Brokered deposits
87,676
245
0.28
83,274
620
0.74
Total interest-bearing deposits
1,994,657
3,173
0.16
1,663,282
7,820
0.47
Total borrowings
22
—
—
37,473
95
0.25
Total long-term debt
73,940
4,403
5.95
64,162
4,108
6.40
Total interest-bearing liabilities
2,068,619
7,576
0.37
1,764,917
12,023
0.68
Demand deposits
1,324,797
840,421
Other liabilities
43,483
39,005
Shareholders’ equity
354,144
337,879
Total liabilities and shareholders’ equity
$
3,791,043
$
2,982,222
Net interest spread
2.63
%
2.91
%
Net interest income and net interest margin (2)
$
100,556
2.79
%
$
88,451
3.16
%
Non-taxable equivalent net interest margin
2.75
%
3.11
%
(1) Interest revenue on tax-exempt securities has been increased to reflect comparable interest on taxable securities. The rate used was 21%, reflecting the statutory federal income tax rate.
(2) Tax equivalent net interest income divided by total interest-earning assets using the appropriate day count convention based on the type of interest-earning asset.



ATLANTIC CAPITAL BANCSHARES, INC.
Period End Loans
Linked
Year Over
December 31,
September 30,
June 30,
March 31,
December 31,
Quarter
Year
(dollars in thousands)
2021
2021
2021
2021
2020
Change
Change
Loans held for sale
Loans held for sale
$
2,087
$
11,814
$
—
$
1,847
$
—
$
(9,727
)
$
2,087
Total loans held for sale
$
2,087
$
11,814
$
—
$
1,847
$
—
$
(9,727
)
$
2,087
Loans held for investment
Commercial loans:
Commercial and industrial - other
$
863,060
$
790,437
$
767,646
$
735,287
$
760,645
$
72,623
$
102,415
Commercial and industrial - PPP
17,919
48,304
105,684
218,766
192,160
(30,385
)
(174,241
)
Commercial real estate:
Multifamily
73,581
62,906
58,632
80,507
66,262
10,675
7,319
Owner occupied
438,630
413,875
392,108
381,018
373,689
24,755
64,941
Investment
548,143
483,538
506,230
480,566
469,150
64,605
78,993
Construction and land:
1?4 family residential construction
297
2,338
2,074
1,578
1,171
(2,041
)
(874
)
Other construction, development, and land
153,639
202,810
178,423
141,218
144,424
(49,171
)
9,215
Total commercial loans
2,095,269
2,004,208
2,010,797
2,038,940
2,007,501
91,061
87,768
Residential:
Residential mortgages
45,816
47,076
45,207
31,817
33,783
(1,260
)
12,033
Home equity
27,315
28,943
24,972
26,293
25,443
(1,628
)
1,872
Total residential loans
73,131
76,019
70,179
58,110
59,226
(2,888
)
13,905
Consumer
197,955
192,462
184,203
203,176
176,066
5,493
21,889
Other
4,733
4,921
5,234
7,689
13,897
(188
)
(9,164
)
2,371,088
2,277,610
2,270,413
2,307,915
2,256,690
93,478
114,398
Less net deferred fees and other unearned income
(3,854
)
(3,754
)
(5,514
)
(7,101
)
(7,654
)
(100
)
3,800
Total loans held for investment
$
2,367,234
$
2,273,856
$
2,264,899
$
2,300,814
$
2,249,036
$
93,378
$
118,198
Total loans
$
2,369,321
$
2,285,670
$
2,264,899
$
2,302,661
$
2,249,036
$
83,651
$
120,285
Total unfunded commitments
$
1,079,769
$
848,642
$
804,784
$
789,869
$
813,757
$
231,127
$
266,012



ATLANTIC CAPITAL BANCSHARES, INC.
Allowance for Credit Losses Activity and Credit Quality
2021
2020
Fourth
Third
Second
First
Fourth
(dollars in thousands)
Quarter
Quarter
Quarter
Quarter
Quarter
Allowance for loan losses
Balance at beginning of period
$
23,924
$
26,123
$
27,506
$
31,818
$
31,894
Provision for loan losses
(1,108
)
(2,221
)
(814
)
(4,074
)
225
Loans charged-off:
Commercial and industrial
(215
)
(131
)
(386
)
(288
)
(401
)
Commercial real estate
—
—
—
—
—
Construction and land
—
—
—
—
—
Residential mortgages
(501
)
—
(223
)
—
—
Home equity
—
—
—
—
—
Consumer
—
—
—
—
—
Other
—
—
—
—
—
Total loans charged-off
(716
)
(131
)
(609
)
(288
)
(401
)
Recoveries on loans previously charged-off:
Commercial and industrial
81
151
6
50
37
Commercial real estate
—
—
—
—
44
Construction and land
—
—
—
—
18
Residential mortgages
3
—
32
—
—
Home equity
—
—
—
—
—
Consumer
2
2
2
—
1
Other
—
—
—
—
—
Total recoveries
86
153
40
50
100
Net charge-offs
$
(630
)
$
22
$
(569
)
$
(238
)
$
(301
)
Balance at period end
$
22,186
$
23,924
$
26,123
$
27,506
$
31,818
Allowance for unfunded commitments
Balance at beginning of period
$
2,380
$
2,565
$
2,683
$
3,128
$
2,871
Provision for unfunded commitments
377
(185
)
(118
)
(445
)
257
Balance at period end
$
2,757
$
2,380
$
2,565
$
2,683
$
3,128
Total allowance for credit losses - loans and unfunded commitments
$
24,943
$
26,304
$
28,688
$
30,189
$
34,946
Provision for credit losses under CECL
Provision for loan losses
(1,108
)
(2,221
)
(814
)
(4,074
)
225
Provision for securities held to maturity credit losses
-
1
(1
)
-
(1
)
Provision for unfunded commitments
377
(185
)
(118
)
(445
)
257
Total provision for credit losses
$
(731
)
$
(2,405
)
$
(933
)
$
(4,519
)
$
481
Non-performing loans
$
4,153
$
4,077
$
5,194
$
2,056
$
4,862
Foreclosed properties (OREO)
—
—
16
16
16
Total nonperforming assets
$
4,153
$
4,077
$
5,210
$
2,072
$
4,878
Allowance for loan losses to loans held for investment
0.94
%
1.05
%
1.15
%
1.20
%
1.41
%
Allowance for credit losses to loans held for investment
1.05
%
1.16
%
1.27
%
1.31
%
1.55
%
Allowance for credit losses to loans held for investment excluding PPP loans
1.06
%
1.18
%
1.33
%
1.45
%
1.70
%
Net charge-offs to average loans (1)
0.11
0.00
0.10
0.04
0.05
Non-performing loans as a percentage of total loans
0.18
%
0.18
%
0.23
%
0.09
%
0.22
%
Non-performing assets as a percentage of total assets
0.11
%
0.10
%
0.14
%
0.06
%
0.13
%
(1) Annualized.



ATLANTIC CAPITAL BANCSHARES, INC.
Period End Deposits
Linked
December 31,
September 30,
June 30,
March 31,
December 31,
Quarter
Year Over
(dollars in thousands)
2021
2021
2021
2021
2020
Change
Year Change
DDA
$
1,471,920
$
1,691,616
$
1,374,018
$
1,280,524
$
1,033,765
$
(219,696
)
$
438,155
NOW
648,763
721,525
536,677
485,540
760,638
(72,762
)
(111,875
)
Savings
884
800
676
562
625
84
259
Money market
823,127
930,929
1,026,239
1,142,361
1,030,753
(107,802
)
(207,626
)
Time
288,698
287,865
283,656
294,129
241,328
833
47,370
Brokered
94,510
94,586
84,958
74,576
94,399
(76
)
111
Total deposits
$
3,327,902
$
3,727,321
$
3,306,224
$
3,277,692
$
3,161,508
$
(399,419
)
$
166,394
Average Deposits
2021
2020
Linked
Fourth
Third
Second
First
Fourth
Quarter
Q4 2021 vs
(dollars in thousands)
Quarter
Quarter
Quarter
Quarter
Quarter
Change
Q4 2020
DDA
$
1,487,405
$
1,375,114
$
1,295,728
$
1,136,531
$
977,009
$
112,291
$
510,396
NOW
650,668
607,485
548,358
618,701
558,967
43,183
$
91,701
Savings
875
731
593
587
614
144
$
261
Money market
874,926
1,057,246
1,088,423
1,042,809
1,026,347
(182,320
)
$
(151,421
)
Time
287,617
285,808
290,331
273,615
221,792
1,809
$
65,825
Brokered
94,271
87,498
84,168
84,663
89,673
6,773
$
4,598
Total deposits
$
3,395,762
$
3,413,882
$
3,307,601
$
3,156,906
$
2,874,402
$
(18,120
)
$
521,360
Noninterest bearing deposits as a percentage of average deposits
43.8
%
40.3
%
39.2
%
36.0
%
34.0
%
Cost of interest-bearing deposits
0.12
%
0.15
%
0.17
%
0.19
%
0.25
%
Cost of deposits
0.07
%
0.08
%
0.10
%
0.12
%
0.16
%



ATLANTIC CAPITAL BANCSHARES, INC.
Non-GAAP Performance and Financial Measures Reconciliation
For the twelve months
2021
2020
ended December 31,
Fourth
Third
Second
First
Fourth
(in thousands, except share and per share data)
Quarter
Quarter
Quarter
Quarter
Quarter
2021
2020
Taxable equivalent interest income reconciliation
Interest income - GAAP
$
26,930
$
26,664
$
27,618
$
25,410
$
24,943
$
106,622
$
98,996
Taxable equivalent adjustment
393
376
375
365
345
1,510
1,478
Interest income - taxable equivalent
$
27,323
$
27,040
$
27,993
$
25,775
$
25,288
$
108,132
$
100,474
Taxable equivalent net interest income reconciliation
Net interest income - GAAP
$
25,272
$
24,769
$
25,660
$
23,345
$
22,644
$
99,046
$
86,973
Taxable equivalent adjustment
393
376
375
365
345
1,510
1,478
Net interest income - taxable equivalent
$
25,665
$
25,145
$
26,035
$
23,710
$
22,989
$
100,556
$
88,451
Loan yield excluding PPP loans reconciliation
Loan yield - GAAP
3.86
%
3.91
%
4.19
%
3.89
%
3.89
%
3.96
%
4.06
%
Impact of PPP loans
(0.11
)
(0.20
)
(0.24
)
(0.06
)
(0.03
)
(0.15
)
0.10
Loan yield excluding PPP loans
3.75
%
3.71
%
3.95
%
3.83
%
3.86
%
3.81
%
4.16
%
Taxable equivalent net interest margin reconciliation
Net interest margin - GAAP
2.72
%
2.65
%
2.87
%
2.76
%
2.86
%
2.75
%
3.11
%
Impact of taxable equivalent adjustment
0.04
0.04
0.04
0.05
0.05
0.04
0.05
Net interest margin - taxable equivalent
2.76
%
2.69
%
2.91
%
2.81
%
2.91
%
2.79
%
3.16
%
Taxable equivalent net interest margin excluding PPP loans reconciliation
Net interest margin - taxable equivalent
2.76
%
2.69
%
2.91
%
2.81
%
2.91
%
2.79
%
3.11
%
Impact of PPP loans
(0.08
)
(0.15
)
(0.21
)
(0.11
)
(0.10
)
(0.13
)
0.07
Net interest margin - taxable equivalent excluding PPP loans
2.68
%
2.54
%
2.70
%
2.70
%
2.81
%
2.66
%
3.18
%
Taxable equivalent income before income taxes reconciliation
Income before income taxes - GAAP
$
14,595
$
16,765
$
14,980
$
16,277
$
12,015
$
62,617
$
27,153
Taxable equivalent adjustment
393
376
375
365
345
1,510
1,478
Income before income taxes
$
14,988
$
17,141
$
15,355
$
16,642
$
12,360
$
64,127
$
28,631
Taxable equivalent income tax expense reconciliation
Income tax expense - GAAP
$
2,931
$
3,461
$
3,164
$
2,915
$
2,065
$
12,471
$
4,613
Taxable equivalent adjustment
393
376
375
365
345
1,510
1,478
Income tax expense
$
3,324
$
3,837
$
3,539
$
3,280
$
2,410
$
13,981
$
6,091
Tangible book value per common share reconciliation
Total shareholders’ equity
$
373,523
$
363,925
$
353,185
$
340,328
$
338,586
$
373,523
$
338,586
Intangible assets
(19,925
)
(19,925
)
(19,925
)
(19,925
)
(19,925
)
(19,925
)
(19,925
)
Total tangible common equity
$
353,598
$
344,000
$
333,260
$
320,403
$
318,661
$
353,598
$
318,661
Common shares outstanding
20,334,150
20,305,109
20,319,429
20,354,077
20,394,912
20,334,150
20,394,912
Book value per common share - GAAP
$
18.37
$
17.92
$
17.38
$
16.72
$
16.60
$
18.37
$
16.60
Tangible book value
17.39
16.94
16.40
15.74
15.62
17.39
15.62
Tangible common equity to tangible assets reconciliation
Total shareholders’ equity
$
373,523
$
363,925
$
353,185
$
340,328
$
338,586
$
373,523
$
338,586
Intangible assets
(19,925
)
(19,925
)
(19,925
)
(19,925
)
(19,925
)
(19,925
)
(19,925
)
Total tangible common equity
$
353,598
$
344,000
$
333,260
$
320,403
$
318,661
$
353,598
$
318,661
Total assets
$
3,819,585
$
4,210,316
$
3,780,445
$
3,732,668
$
3,615,617
$
3,819,585
$
3,615,617
Intangible assets
(19,925
)
(19,925
)
(19,925
)
(19,925
)
(19,925
)
(19,925
)
(19,925
)
Total tangible assets
$
3,799,660
$
4,190,391
$
3,760,520
$
3,712,743
$
3,595,692
$
3,799,660
$
3,595,692
Tangible common equity to tangible assets
9.31
%
8.21
%
8.86
%
8.63
%
8.86
%
9.31
%
8.86
%
Allowance for credit losses to loans held for investment reconciliation
Total loans held for investment
$
2,367,234
$
2,273,856
$
2,264,899
$
2,300,814
$
2,249,036
$
2,367,234
$
2,249,036
PPP loans
(17,919
)
(48,304
)
(105,684
)
(218,766
)
(192,160
)
(17,919
)
(192,160
)
Total loans held for investment excluding PPP loans
$
2,349,315
$
2,225,552
$
2,159,215
$
2,082,048
$
2,056,876
$
2,349,315
$
2,056,876
Allowance for credit losses to loans held for investment
1.05
%
1.16
%
1.27
%
1.31
%
1.55
%
1.05
%
1.55
%
Allowance for credit losses to loans held for investment excluding PPP loans
1.06
%
1.18
%
1.33
%
1.45
%
1.70
%
1.06
%
1.70
%

Stock Information
Company Name: Atlantic Capital Bancshares Inc.
Stock Symbol: ACBI
Market: NASDAQ
Website: atlanticcapitalbank.com
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