Press Release

Atlantic Capital Bancshares, Inc. Reports Fourth Quarter and Full Year 2017 Results

Company Release - 1/29/2018 7:00 AM ET

ATLANTA, Jan. 29, 2018 (GLOBE NEWSWIRE) -- Atlantic Capital Bancshares, Inc. (NASDAQ:ACBI) announced a loss of $15.3 million, or ($0.59) per diluted share for the fourth quarter of 2017, compared to net income of $4.0 million, or $0.16 per diluted share, in the third quarter of 2017. The tax reform legislation signed into law on December 22, 2017 resulted in a reduction of the value of our deferred tax asset and an increase in tax expense of $17.4 million, or ($0.67) per diluted share, in the fourth quarter of 2017. Net loss for the full year 2017 was $3.7 million, or ($0.14) per diluted share, compared to net income for the full year 2016 of $13.4 million, or $0.53 per diluted share.

Fourth Quarter Highlights

  • Grew loans held for investment by $28.4 million to $1.93 billion from September 30, 2017.
  • Grew commercial and industrial loans by $52.9 million to $615.4 million from September 30, 2017.
  • Grew total quarterly average deposits by $73.6 million to $2.19 billion from the third quarter of 2017.
  • Reported taxable equivalent net interest margin of 3.39%, an increase of 13 basis points from the third quarter of 2017.
  • Decreased nonperforming assets to 0.14% of total assets from 0.23% in the third quarter of 2017.
  • Recorded expense of $2.2 million related to the previously announced resignation of the President and Chief Operating Officer and a planned reduction of staff. 

2017 Highlights

  • Grew commercial and industrial loans by $84.3 million, or 16%, from December 31, 2016.
  • Grew average noninterest bearing deposits by $71.3 million, or 13%, from 2016.
  • Reported taxable equivalent net interest margin of 3.28%, an increase of 16 basis points from 2016.
  • Grew income from SBA lending activities by $487,000, or 13%, from 2016.
  • Completed the sale of our Cleveland Tennessee branch in the first quarter of 2017.

2018 Expectations

  • Anticipate closing on the sale of the Southeast Trust Company in the second quarter of 2018, with an expected gain of approximately $1.7 million. 
  • Plan additional severance expense in the first quarter of 2018 from the reduction of staff and the closing of our Charlotte loan production office.   
  • Anticipate the consolidation of two branches in Chattanooga, Tennessee during the first quarter of 2018.
  • Estimate the 2018 effective tax rate to be approximately 20%. 

“Atlantic Capital’s earnings in the fourth quarter of 2017 were affected not only by the change in tax law, but also by several actions management has taken to drive growth in our core businesses, streamline the structure of our organization, and position the Company for better performance in 2018 and beyond. This disciplined focus on efficiency, alignment, and productivity will continue in our day to day management of the Company,” explained Douglas Williams, President and Chief Executive Officer.

“We are confident as we begin 2018 that the cost saving, restructuring, and new investment decisions we have made will allow us to bring our successful and focused banking strategy to the entire Atlantic Capital footprint, while providing best of class service and solutions to our clients and prospects. Our banking teams are now almost fully staffed and are better aligned for meaningful improvement in performance. Our balance sheet is strong and our credit quality is sound.  We are ready for 2018.”

Income Statement

Net interest income increased to $21.1 million in the fourth quarter of 2017 from $20.3 million in the third quarter of 2017, primarily as a result of higher loan and investment yields. Net accretion income on acquired loans totaled $686,000 in the fourth quarter of 2017 compared to $343,000 in the third quarter of 2017.

Taxable equivalent net interest margin was 3.39% in the fourth quarter of 2017, an increase of 13 basis points from the third quarter of 2017. The accretion from the acquired loan discount and amortization of time deposit premium contributed 12 basis points to the net interest margin in the fourth quarter of 2017 compared to 6 basis points in the third quarter of 2017.

Loan yields in the fourth quarter of 2017 increased 20 basis points to 4.61% from the third quarter of 2017 as a result of the December increase in the fed funds rate, an increase in loan fees and an increase in accretion income. Loan fees contributed 25 basis points to the loan yield in the fourth quarter of 2017 compared to 20 basis points in the third quarter of 2017. Accretion income contributed 15 basis points to the loan yield in the fourth quarter of 2017 compared to 7 basis points in the third quarter of 2017.

The cost of total deposits in the fourth quarter of 2017 was 0.52%, an increase of 2 basis points from the third quarter of 2017. The cost of interest bearing deposits increased 1 basis point to 0.73% from the third quarter of 2017.

The provision for loan losses was $282,000 in the fourth quarter of 2017 compared to $322,000 in the third quarter of 2017. Non-performing assets to total assets improved to 0.14% in the fourth quarter of 2017, compared to 0.23% for the third quarter of 2017. The fourth quarter included a recovery of $192,000 on a $7.7 million loan relationship that was charged-off in the third quarter of 2017.

Noninterest income totaled $3.6 million in the fourth quarter of 2017, an increase of $91,000 from the third quarter of 2017. The increase included higher derivatives income of $97,000, and higher trust income of $45,000, resulting from an increase in assets under management. This was offset by a decrease in mortgage income of $30,000 due to lower residential mortgage loan sales and a decrease in SBA income of $45,000 resulting from lower loan sales.

Noninterest expense totaled $20.6 million in the fourth quarter of 2017 compared to $17.5 million in the third quarter of 2017. Salaries and employee benefits expense increased by $2.9 million in the fourth quarter of 2017 to $13.3 million.  The fourth quarter salaries and benefits expense included $937,000 in severance expense, $1.3 million in expenses related to the President and Chief Operating Officer’s resignation, and the additional expense of adding new SBA and Tennessee commercial bankers.

Balance Sheet

Total loans were $1.94 billion at December 31, 2017, an increase of $26.6 million from September 30, 2017. Loans held for investment were $1.93 billion at December 31, 2017, an increase of $28.4 million from September 30, 2017, as commercial and industrial loans grew $52.9 million during the quarter due to an increase in new loan originations and increased balances on existing loans. This increase was offset by a $27.7 million decrease in investment commercial real estate and construction and land loans related to the timing of payoffs.

At December 31, 2017, the allowance for loan losses was $19.3 million, or 1.00% of loans held for investment, compared to $18.9 million, or 0.99% of loans held for investment as of September 30, 2017. Annualized net charge-offs to average loans totaled (0.04%) in the fourth third quarter of 2017 and totaled 0.23% for 2017. Nonperforming assets totaled $4.1 million, or 0.14% of total assets, as of December 31, 2017, compared to $6.0 million, or 0.23% of total assets, as of September 30, 2017.

Total average deposits for the fourth quarter of 2017 were $2.19 billion, an increase of $73.6 million from the third quarter of 2017. Average noninterest bearing deposits increased $21.2 million to $649.2 million in the fourth quarter of 2017 and accounted for 29.6% of average total deposits.

Total deposits were $2.45 billion at December 31, 2017, an increase of $347.0 million from September 30, 2017. This increase included higher than normal levels of seasonal volatility at year-end.

Earnings Conference Call

The Company will host a conference call at 10:00 a.m. EST on Monday, January 29, 2018, to discuss the financial results for the quarter ended December 31, 2017. Individuals wishing to participate in the conference call may do so by dialing 844.868.8848 from the United States and entering Conference ID 89772886. 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) operating net income; (ii) operating non-interest expense; (iii) operating non-interest income; (iv) taxable equivalent interest income; (v) taxable equivalent net interest margin; (vi) efficiency ratio; (vii) operating return on average assets; (viii) operating return on average equity; (ix) tangible common equity; and (x) tangible book value, in its analysis of the Company's performance. Operating net income excludes the following from net income available to common shareholders: merger and conversion costs, net gains on branch sales, and the income tax effect of adjustments. Operating net income also excludes the revaluation of net deferred tax assets. Operating non-interest expense excludes merger and conversion costs from non-interest expense as well as costs related to the sale of branches. The efficiency ratio excludes merger and conversion costs. 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, strategic focus, 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 the “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” sections 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 $2.9 billion publicly traded bank holding company headquartered in Atlanta, Georgia. Atlantic Capital offers banking, treasury management, capital markets, trust, and mortgage services to privately held companies and individuals in Atlanta, eastern Tennessee, and northwest Georgia. Atlantic Capital also provides specialized financial services to select clients nationally.

        
ATLANTIC CAPITAL BANCSHARES, INC.       
Selected Financial Information       
                
  2017 2016  For the year ended
December 31,
 
(in thousands, except share and per share data; taxable equivalent) Fourth
Quarter
 Third
Quarter
 Second
Quarter
 First
Quarter
 Fourth
Quarter
 2017 2016 
INCOME SUMMARY               
Interest income (1) $25,350  $24,566  $24,545  $22,716  $22,530  $97,177  $88,701  
Interest expense 4,028  4,060  3,833  3,208  3,029  15,129  11,509  
Net interest income 21,322  20,506  20,712  19,508  19,501  82,048  77,192  
Provision for loan losses 282  322  1,980  634  2,208  3,218  3,816  
Net interest income after provision for loan losses 21,040  20,184  18,732  18,874  17,293  78,830  73,376  
Operating noninterest income (2) 3,568  3,477  5,287  3,857  4,430  16,189  17,847  
Operating noninterest expense (3) 20,594  17,504  17,623  17,744  18,571  73,465  70,233  
Operating income before income taxes 4,014  6,157  6,396  4,987  3,152  21,554  20,990  
Operating income tax expense (4) 1,953  2,105  2,067  1,757  1,417  7,882  8,108  
Operating net income (2)(3)(4) 2,061  4,052  4,329  3,230  1,735  13,672  12,882  
Merger related expenses, net of income tax         126    1,685  
Net gain on sale of branches, net of income tax             2,198  
Revaluation of net deferred tax asset 17,398          17,398    
Net income (loss) - GAAP $(15,337) $4,052  $4,329  $3,230  $1,609  $(3,726) $13,395  
                
PER SHARE DATA               
Diluted earnings (loss) per share - GAAP $(0.59) $0.16  $0.17  $0.13  $0.06  $(0.14) $0.53  
Diluted earnings per share - operating (2)(3)(4) 0.08  0.16  0.17  0.13  0.07  0.53  0.51  
Book value per share 11.99  12.63  12.45  12.18  12.10  11.99  12.10  
Tangible book value per share (5) 11.05  11.67  11.47  11.16  11.05  11.05  11.05  
                
PERFORMANCE MEASURES               
Return on average equity - GAAP (18.66)%4.96 %5.48 %4.19 %2.09 %(1.17)%4.44 %
Return on average equity - operating (2)(3)(4) 2.51  4.96  5.48  4.19  2.25  4.29  4.27  
Return on average assets - GAAP (2.24) 0.60  0.63  0.48  0.24  (0.14) 0.49  
Return on average assets - operating (2)(3)(4) 0.30  0.60  0.63  0.48  0.25  0.50  0.48  
Taxable equivalent net interest margin 3.39  3.26  3.26  3.20  3.11  3.28  3.12  
Efficiency ratio 83.45  73.65  68.37  76.78  78.33  75.48  74.28  
                
CAPITAL               
Average equity to average assets 11.99 %11.99 %11.47 %11.44 %11.33 %11.72 %11.13 %
Tangible common equity to tangible assets 9.91  11.48  10.99  10.27  10.27  9.91  10.27  
Tier 1 capital ratio 11.1 (7)11.3  10.9  10.7  10.3  11.1 (7)10.3  
Total risk based capital ratio 14.1 (7)14.3  14.0  13.8  13.3  14.1 (7)13.3  
Number of common shares outstanding - basic 25,712,909  25,716,418  25,654,521  25,535,013  25,093,135  25,712,909  25,093,135  
Number of common shares outstanding - diluted 25,891,225  25,967,575  25,931,671  25,836,809  25,673,841  25,891,225  25,673,841  
                
ASSET QUALITY               
Allowance for loan losses to loans held for investment 1.00 %0.99 %1.11 %1.05 %1.04 %1.00 %1.04 %
Net charge-offs to average loans (6) (0.04) 0.68  0.01  0.26  0.03  0.23  0.11  
NPAs to total assets 0.14  0.23  0.52  0.21  0.13  0.14  0.13  
                
(1)Interest income on tax-exempt securities has been increased to reflect comparable interest on taxable securities. The rate used was 35%, reflecting the statutory federal income tax rate. (2)Excludes gain on sale of branches. (3)Excludes merger related and divestiture expenses. (4)Excludes revaluation of net deferred tax asset. (5)Excludes effect of acquisition related intangibles. (6)Annualized. (7)Amounts are estimates as of 12/31/17.


       
ATLANTIC CAPITAL BANCSHARES, INC.      
Consolidated Balance Sheets (unaudited)      
       
  December 31, September 30, December 31,
(in thousands, except share data) 2017 2017 2016
ASSETS      
Cash and due from banks $38,086  $35,504  $36,790 
Interest-bearing deposits in banks 281,247  40,558  118,039 
Other short-term investments 10,681  5,189  10,896 
Cash and cash equivalents 330,014  81,251  165,725 
Investment securities available-for-sale 449,117  447,005  347,705 
Other investments 32,174  35,818  23,806 
Loans held for sale 1,487  3,274  35,219 
Loans held for investment 1,933,839  1,905,432  1,981,330 
Less: allowance for loan losses (19,344) (18,870) (20,595)
  Loans held for investment, net 1,914,495  1,886,562  1,960,735 
Branch premises held for sale     2,995 
Premises and equipment, net 12,054  11,747  11,958 
Bank owned life insurance 63,667  63,284  62,160 
Goodwill and intangible assets, net 27,633  27,945  29,567 
Other real estate owned 1,215  1,494  1,872 
Other assets 59,565  80,032  85,801 
Total assets $2,891,421  $2,638,412  $2,727,543 
       
LIABILITIES AND SHAREHOLDERS' EQUITY      
Deposits:      
Noninterest-bearing demand $732,442  $599,292  $643,471 
Interest-bearing checking 306,331  270,740  264,062 
Savings 26,573  30,131  27,932 
Money market 1,117,891  865,238  912,493 
Time 138,612  144,250  157,810 
Brokered deposits 128,816  193,994  200,223 
Deposits to be assumed in branch sale     31,589 
Total deposits 2,450,665  2,103,645  2,237,580 
Federal Home Loan Bank borrowings 45,000  125,000  110,000 
Long-term debt 49,535  49,493  49,366 
Other liabilities 37,796  35,520  26,939 
Total liabilities 2,582,996  2,313,658  2,423,885 
       
SHAREHOLDERS' EQUITY      
Preferred stock, no par value;  10,000,000 shares authorized; no shares issued and outstanding as of December 31, 2017, September 30, 2017, and December 31, 2016      
Common stock, no par value; 100,000,000 shares authorized; 25,712,909, 25,716,418, and 25,093,135 shares issued and outstanding as of December 31, 2017, September 30, 2017, and December 31, 2016, respectively 299,474  298,469  292,747 
Retained earnings 12,810  28,147  16,536 
Accumulated other comprehensive (loss) income (3,859) (1,862) (5,625)
Total shareholders’ equity 308,425  324,754  303,658 
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $2,891,421  $2,638,412  $2,727,543 
       


ATLANTIC CAPITAL BANCSHARES, INC.            
Consolidated Statements of Income (unaudited)            
               
(in thousands, except share and per share data) Three months ended Year ended
  December
31, 2017
 September
30, 2017
 June 30,
2017
 March 31,
2017
 December
31, 2016
 December
31, 2017
 December
31, 2016
INTEREST INCOME              
Loans, including fees $22,043  $21,491  $21,361  $19,994  $20,363  $84,889  $80,781 
Investment securities available-for-sale 2,510  2,298  2,355  2,018  1,477  9,181  5,698 
Interest and dividends on other interest‑earning assets 584  562  606  449  467  2,201  1,738 
Total interest income 25,137  24,351  24,322  22,461  22,307  96,271  88,217 
               
INTEREST EXPENSE              
Interest on deposits 2,856  2,693  2,481  2,047  1,929  10,077  7,399 
Interest on Federal Home Loan Bank advances 323  459  452  302  234  1,536  558 
Interest on federal funds purchased and securities sold under agreements to repurchase 26  84  76  36  38  222  229 
Interest on long-term debt 823  824  824  823  828  3,294  3,285 
Other             38 
Total interest expense 4,028  4,060  3,833  3,208  3,029  15,129  11,509 
               
NET INTEREST INCOME BEFORE PROVISION FOR LOAN LOSSES 21,109  20,291  20,489  19,253  19,278  81,142  76,708 
Provision for loan losses 282  322  1,980  634  2,208  3,218  3,816 
NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES 20,827  19,969  18,509  18,619  17,070  77,924  72,892 
               
NONINTEREST  INCOME              
Service charges 1,206  1,247  1,274  1,349  1,327  5,076  5,487 
Gains (losses) on sale of securities 17  (80)       (63) 44 
Gains (losses) on sale of other assets (46) 44  666  78  238  742  388 
Mortgage income 290  320  388  257  499  1,255  1,917 
Trust income 482  437  488  407  350  1,814  1,411 
Derivatives income 94  (3) 116  (51) 346  156  578 
Bank owned life insurance 384  384  384  378  395  1,530  1,610 
SBA lending activities 843  888  1,171  1,227  599  4,129  3,642 
TriNet lending activities 27  20  20  20  357  87  1,501 
Gains on sale of branches     302      302  3,885 
Other noninterest income 271  220  478  192  319  1,161  1,269 
Total noninterest income 3,568  3,477  5,287  3,857  4,430  16,189  21,732 
               
NONINTEREST EXPENSE              
Salaries and employee benefits 13,298  10,409  10,603  11,065  11,269  45,375  42,303 
Occupancy 1,156  1,129  1,074  1,230  995  4,589  4,604 
Equipment and software 872  776  996  805  694  3,449  2,966 
Professional services 1,280  1,595  973  904  968  4,752  2,918 
Postage, printing and supplies 114  63  78  85  73  340  462 
Communications and data processing 1,111  982  1,069  987  1,064  4,149  3,291 
Marketing and business development 225  272  179  270  247  946  1,100 
FDIC premiums 212  308  132  314  262  966  1,568 
Merger and conversion costs     304    204  304  2,742 
Amortization of intangibles 367  391  425  470  495  1,653  2,445 
Foreclosed property/problem asset expense 7  7  107  3  666  124  864 
Other noninterest expense 1,952  1,572  1,683  1,611  1,838  6,818  8,017 
Total noninterest expense 20,594  17,504  17,623  17,744  18,775  73,465  73,280 
               
INCOME BEFORE PROVISION FOR INCOME TAXES 3,801  5,942  6,173  4,732  2,725  20,648  21,344 
Provision for income taxes 19,138  1,890  1,844  1,502  1,116  24,374  7,949 
NET (LOSS)/INCOME $(15,337) $4,052  $4,329  $3,230  $1,609  $(3,726) $13,395 
               
Net (loss)/income per common share ‑ basic $(0.60) $0.16  $0.17  $0.13  $0.06  $(0.15) $0.54 
Net (loss)/income per common share ‑ diluted $(0.59) $0.16  $0.17  $0.13  $0.06  $(0.14) $0.53 
               
Weighted average shares - basic 25,723,548  25,699,179  25,621,910  25,320,690  25,027,304  25,592,731  24,763,522 
Weighted average shares - diluted 25,888,064  25,890,779  25,831,281  25,672,286  25,407,728  25,822,085  25,186,680 


      
ATLANTIC CAPITAL BANCSHARES, INC.     
Average Balance Sheets and Net Interest Margin Analysis     
Selected Financial Information     
    
   Three months ended 
  December 31, 2017  September 30, 2017 
(dollars in thousands; taxable equivalent) Average
Balance
 Interest
Income/
Expense
 Tax
Equivalent
Yield/Rate
  Average
Balance
 Interest
Income/
Expense
 Tax
Equivalent
Yield/Rate
 
    
Assets              
Interest bearing deposits in other banks $113,553  $302  1.06 % $69,839  $216  1.23 %
Other short-term investments 8,532  40  1.86   13,830  67  1.92  
Investment securities:              
  Taxable investment securities 378,859  2,024  2.12   373,087  1,812  1.93  
  Non-taxable investment securities(1) 81,410  699  3.41   82,781  701  3.36  
Total investment securities 460,269  2,723  2.35   455,868  2,513  2.19  
Total loans 1,898,745  22,043  4.61   1,934,505  21,491  4.41  
FHLB and FRB stock 16,693  242  5.75   18,494  279  5.99  
  Total interest-earning assets 2,497,792  25,350  4.03   2,492,536  24,566  3.91  
Non-earning assets 222,278       208,851      
  Total assets $2,720,070       $2,701,387      
Liabilities              
Interest bearing deposits:              
NOW, money market, and savings 1,276,116  2,140  0.67   1,192,664  1,886  0.63  
Time deposits 140,921  301  0.85   143,862  292  0.81  
Brokered deposits 128,594  415  1.28   156,708  515  1.30  
Total interest-bearing deposits 1,545,631  2,856  0.73   1,493,234  2,693  0.72  
Total borrowings 111,879  349  1.24   179,808  543  1.20  
Total long-term debt 49,507  823  6.60   49,465  824  6.61  
  Total interest-bearing liabilities 1,707,017  4,028  0.94   1,722,507  4,060  0.94  
Demand deposits 649,218       628,029      
Other liabilities 37,776       27,019      
Shareholders' equity 326,059       323,832      
  Total liabilities and shareholders' equity $2,720,070       $2,701,387      
Net interest spread     3.09 %     2.97 %
Net interest income and net interest margin(2)   $21,322  3.39 %   $20,506  3.26 %
               
Non-taxable equivalent net interest margin     3.35 %     3.23 %
               
(1) Interest revenue on tax-exempt securities has been increased to reflect comparable interest on taxable securities. The rate used was 35%, 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, 2017  December 31, 2016 
(dollars in thousands; taxable equivalent) Average
Balance
 Interest
Income/
Expense
 Tax
Equivalent
Yield/Rate
  Average
Balance
 Interest
Income/
Expense
 Tax
Equivalent
Yield/Rate
 
    
Assets              
Interest bearing deposits in other banks $85,525  $916  1.07 % $92,744  $583  0.63 %
Other short-term investments 14,266  270  1.89   23,134  318  1.37  
Investment securities:              
  Taxable investment securities 366,309  7,221  1.97   310,815  4,755  1.53  
  Non-taxable investment securities(1) 81,466  2,866  3.52   46,239  1,427  3.09  
Total investment securities 447,775  10,087  2.25   357,054  6,182  1.73  
Total loans 1,936,109  84,889  4.38   1,986,482  80,781  4.07  
FHLB and FRB stock 18,528  1,015  5.48   15,617  837  5.36  
  Total interest-earning assets 2,502,203  97,177  3.88   2,475,031  88,701  3.58  
Non-earning assets 217,455       234,107      
  Total assets $2,719,658       $2,709,138      
Liabilities              
Interest bearing deposits:              
NOW, money market, and savings 1,197,771  6,983  0.58   1,170,879  4,889  0.42  
Time deposits 149,350  1,134  0.76   208,800  936  0.45  
Brokered deposits 168,685  1,960  1.16   207,543  1,574  0.76  
Total interest-bearing deposits 1,515,806  10,077  0.66   1,587,222  7,399  0.47  
Total borrowings 175,060  1,758  1.00   176,122  825  0.47  
Total long-term debt 49,444  3,294  6.66   49,275  3,285  6.67  
  Total interest-bearing liabilities 1,740,310  15,129  0.87   1,812,619  11,509  0.63  
Demand deposits 631,046       559,762      
Other liabilities 29,497       35,314      
Shareholders' equity 318,805       301,443      
  Total liabilities and shareholders' equity $2,719,658       $2,709,138      
Net interest spread     3.01 %     2.95 %
Net interest income and net interest margin(2)   $82,048  3.28 %   $77,192  3.12 %
               
Non-taxable equivalent net interest margin     3.24 %     3.10 %
               
(1) Interest revenue on tax-exempt securities has been increased to reflect comparable interest on taxable securities. The rate used was 35%, 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              
               
               
(dollars in thousands) December
31, 2017
 September
30, 2017
 June
30, 2017
 March
31, 2017
 December
31, 2016
 Linked
Quarter
Change
 Year Over
Year
Change
               
Loans held for sale              
Loans held for sale $1,487  $3,274  $1,744  $1,297  $4,302  $(1,787) $(2,815)
Branch loans held for sale       27,944  30,917    (30,917)
Total loans held for sale $1,487  $3,274  $1,744  $29,241  $35,219  $(1,787) $(33,732)
               
Loans held for investment              
Commercial loans:              
Commercial and industrial $615,359  $562,426  $578,888  $544,911  $531,061  $52,933  $84,298 
Commercial real estate:              
Multifamily 99,553  91,219  113,571  108,215  68,223  8,334  31,330 
Owner occupied 346,746  348,447  351,733  348,888  352,523  (1,701) (5,777)
Investment 494,116  505,188  517,571  478,485  438,032  (11,072) 56,084 
Construction and land:              
1-4 family residential construction 6,906  9,644  11,711  11,799  10,335  (2,738) (3,429)
Other construction, development, and land 108,589  122,436  113,347  123,838  209,017  (13,847) (100,428)
Mortgage warehouse loans 39,981  41,551  47,992  58,357  147,519  (1,570) (107,538)
Total commercial loans 1,711,250  1,680,911  1,734,813  1,674,493  1,756,710  30,339  (45,460)
               
Residential:              
Residential mortgages 104,484  101,976  101,798  99,665  101,921  2,508  2,563 
Home equity 76,244  78,773  79,769  81,438  77,358  (2,529) (1,114)
Total residential loans 180,728  180,749  181,567  181,103  179,279  (21) 1,449 
               
Consumer 29,393  31,750  31,981  32,525  27,338  (2,357) 2,055 
Other 16,278  16,106  18,013  17,611  21,565  172  (5,287)
  1,937,649  1,909,516  1,966,374  1,905,732  1,984,892  28,133  (47,243)
Less net deferred fees and other unearned income (3,810) (4,084) (4,283) (4,008) (3,562) 274  (248)
Total loans held for investment $1,933,839  $1,905,432  $1,962,091  $1,901,724  $1,981,330  $28,407  $(47,491)
               
Total loans $1,935,326  $1,908,706  $1,963,835  $1,930,965  $2,016,549  $26,620  $(81,223)
               


ATLANTIC CAPITAL BANCSHARES, INC. 
Allowance for Loan Losses Activity and Credit Quality 
            
  2017 2016 
(dollars in thousands) Fourth
Quarter
 Third
Quarter
 Second
Quarter
 First 
Quarter
 Fourth
Quarter
 
            
Balance at beginning of period $18,870  $21,870  $19,939  $20,595  $18,534  
Provision for loan losses 312  314  2,048  565  2,134  
Provision for PCI loan losses (30) 8  (68) 69  74  
Loans charged-off:           
Commercial and industrial   (3,292)   (781)   
Commercial real estate       (132) 24  
Construction and land   (16)       
Residential mortgages       (46)   
Home equity   (31) (8)     
Consumer (13) (7) (57) (332) (158) 
Other           
Total loans charged-off (13) (3,346) (65) (1,291) (134) 
Recoveries on loans previously charged‑off:           
Commercial and industrial 192  1  7      
Commercial real estate     2    (15) 
Construction and land 1  15        
Residential mortgages     1      
Home equity     1      
Consumer 12  8  5  1  2  
Other           
Total recoveries 205  24  16  1  (13) 
Net charge-offs $192  $(3,322) $(49) $(1,290) $(147) 
Balance at period end $19,344  $18,870  $21,870  $19,939  $20,595  
            
Loans held for investment           
PCI Loans $11,754  $12,090  $11,510  $11,841  $15,253  
Non-PCI Loans 1,922,085  1,893,342  1,950,581  1,889,883  1,966,077  
  $1,933,839  $1,905,432  $1,962,091  $1,901,724  $1,981,330  
            
Non-performing loans - PCI $1,211  $1,289  $1,310  $1,684  $2,446  
            
Non-performing loans - Non-PCI $2,912  $4,553  $12,300  $3,983  $1,615  
Foreclosed properties (OREO) 1,215  1,494  1,819  1,869  1,872  
Total nonperforming assets $4,127  $6,047  $14,119  $5,852  $3,487  
            
Allowance for loan losses to loans held for investment 1.00 %0.99 %1.11 %1.05 %1.04 %
Net charge-offs to average loans (1) (0.04) 0.68  0.01  0.26  0.03  
Nonperforming loans as a percentage of total loans (2) 0.15  0.24  0.63  0.21  0.08  
Nonperforming assets as a percentage of total assets (2) 0.14  0.23  0.52  0.21  0.13  
            
(1)Annualized.  (2)Excludes non-performing PCI loans. 


           
ATLANTIC CAPITAL BANCSHARES, INC.          
Period End Deposits          
               
(dollars in thousands) December 31,
2017
 September 30,
2017
 June 30, 
2017
 March 31,
2017
 December 31,
2016