ATLANTIC CAPITAL BANCSHARES
ATLANTIC CAPITAL BANCSHARES
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Ticker: ACBI
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Atlantic Capital Bancshares, Inc. Reports First Quarter 2018 Results

  • 37

ATLANTA, April 26, 2018 (GLOBE NEWSWIRE) -- Atlantic Capital Bancshares, Inc. (NASDAQ:ACBI) announced net income of $5.0 million, or $0.19 per diluted share, compared to a loss of $15.3 million, or ($0.60) per diluted share, in the fourth quarter of 2017.

First Quarter Highlights(1)

  • Grew loans held for investment by $25 million to $1.96 billion from December 31, 2017.
  • Grew commercial and industrial loans by $21 million to $636 million from December 31, 2017.
  • Reported net interest margin of 3.51%, an increase of 12 basis points from the fourth quarter of 2017.
  • Reported nonperforming assets to total assets of 0.13% and annualized net charge-offs to average loans of 0.05%.
  • Increased noninterest income $415,000 to $4.0 million compared to the fourth quarter of 2017.
  • Decreased noninterest expense $2.2 million to $18.4 million compared to the fourth quarter of 2017. 

“These improved results reflect solid growth in our core corporate and business banking activities, higher loan yields, and the benefit of our cost reduction initiatives undertaken in prior quarters. We anticipate continued improvement in operating results throughout 2018 and into next year,” explained Douglas Williams, President and Chief Executive Officer.

Income Statement(1)

Net interest income increased to $21.6 million in the first quarter of 2018 from $21.3 million in the fourth quarter of 2017, primarily as a result of higher loan yields and higher loan balances. Net accretion income on acquired loans totaled $448,000 in the first quarter of 2018 compared to $686,000 in the fourth quarter of 2017.

Net interest margin was 3.51% in the first quarter of 2018, an increase of 12 basis points from the fourth quarter of 2017. The accretion from the acquired loan discount and amortization of time deposit premium contributed 9 basis points to the net interest margin in the first quarter of 2018 compared to 12 basis points in the fourth quarter of 2017.

Loan yields in the first quarter of 2018 increased 13 basis points to 4.74% from the fourth quarter of 2017 as a result of the increases in the federal funds rate and 1 month LIBOR, offset by a decrease in accretion income. Accretion income contributed 9 basis points to the loan yield in the first quarter of 2018 compared to 15 basis points in the fourth quarter of 2017.

The cost of total deposits in the first quarter of 2018 was 0.57%, an increase of 5 basis points from the fourth quarter of 2017. The cost of interest bearing deposits increased 8 basis points to 0.81% from the fourth quarter of 2017, driven by increased competition for deposits.

The provision for loan losses was $772,000 in the first quarter of 2018 compared to $282,000 in the fourth quarter of 2017. The first quarter included net charge offs of $231,000 compared to a net recovery of $192,000 in the fourth quarter of 2017.

Noninterest income totaled $4.0 million in the first quarter of 2018, an increase of $415,000 from the fourth quarter of 2017. SBA income increased $459,000 in the first quarter of 2018 from the fourth quarter of 2017 due to a higher volume of SBA loan sales.

(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 for 2018 and 35% for 2017 and prior. We provide detailed reconciliations in the Non-GAAP Performance and Financial Measures Reconciliation table beginning on page 11. See Non-GAAP Financial Measures below for additional information.

The closing on the sale of the Southeastern Trust Company is expected to occur in the second quarter of 2018 and result in a gain of approximately $1.7 million. Quarterly expense savings are expected to be approximately $450,000 to $500,000 but will be offset by an expected decrease in quarterly trust income of approximately $518,000, based on first quarter 2018 results.

Noninterest expense totaled $18.4 million in the first quarter of 2018 compared to $20.6 million in the fourth quarter of 2017. Salaries and employee benefits expense decreased by $1.2 million in the first quarter of 2018 to $12.1 million and included $1.1 million in severance expense and seasonally higher payroll taxes. Professional fees decreased $448,000 from lower legal and consulting fees. The first quarter of 2018 included a write down on other real estate owned of $227,000 on a previously closed branch.

Balance Sheet

Total loans were $1.96 billion at March 31, 2018, an increase of $24.9 million from December 31, 2017. Loans held for investment were $1.96 billion at March 31, 2018, an increase of $25.6 million from December 31, 2017, as commercial and industrial loans grew $20.8 million during the quarter from an increase in new loan originations and increased balances on existing loans.

At March 31, 2018, the allowance for loan losses was $19.9 million, or 1.01% of loans held for investment, compared to $19.3 million, or 1.00% of loans held for investment as of December 31, 2017. Annualized net charge-offs to average loans totaled 0.05% in the first quarter of 2018. Nonperforming assets totaled $3.4 million, or 0.13% of total assets, as of March 31, 2018, compared to $4.1 million, or 0.14% of total assets, as of December 31, 2017.

Total average deposits for the first quarter of 2018 were $2.15 billion, a decrease of $41.0 million from the fourth quarter of 2017. This decrease was the result of seasonal volatility and a large increase in temporary deposits during the fourth quarter of 2017. Average noninterest bearing deposits accounted for 29.7% of average total deposits compared to 29.6% in the fourth quarter of 2017.

Earnings Conference Call

The Company will host a conference call at 9:00 a.m. EDT on Friday, April 27, 2018, to discuss the financial results for the quarter ended March 31, 2018. 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) taxable equivalent interest income; (iii) taxable equivalent net interest income; (iv) taxable equivalent net interest margin; (v) operating income before taxes; (vi) operating income tax expense; (vii) operating return on average assets; (viii) operating return on average equity; (ix) tangible common equity; (x) operating diluted earnings per share; and (xi) tangible book value per common share, in its analysis of the Company's performance. Operating net income excludes the revaluation of net deferred tax assets. 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 $2.7 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.

Media Contact:
Ashley Carson
Corporate and Community Affairs Executive
Email: [email protected]
Phone: 404-995-6050

Financial Contact:
Patrick Oakes
Executive Vice President and Chief Financial Officer
Email: [email protected]
Phone: 404-995-6050


ATLANTIC CAPITAL BANCSHARES, INC.   
Selected Financial Information   
              
  2018 2017 First
Quarter
2018 to 2017
Change
 
(in thousands, except share and per share data; taxable equivalent) First Quarter Fourth Quarter Third Quarter Second Quarter First Quarter  
INCOME SUMMARY             
Interest income (1) $26,085  $25,350  $24,566  $24,545  $22,716  15 %
Interest expense 4,465  4,028  4,060  3,833  3,208  39  
Net interest income 21,620  21,322  20,506  20,712  19,508  11  
Provision for loan losses 772  282  322  1,980  634  22  
Net interest income after provision for loan losses 20,848  21,040  20,184  18,732  18,874  10  
Noninterest income 3,983  3,568  3,477  5,287  3,857  3  
Noninterest expense 18,392  20,594  17,504  17,623  17,744  4  
Income before income taxes 6,439  4,014  6,157  6,396  4,987  29  
Operating income tax expense (2) 1,401  1,953  2,105  2,067  1,757  (20) 
Operating net income (2) 5,038  2,061  4,052  4,329  3,230  56  
Revaluation of net deferred tax asset   17,398          
Net income (loss) - GAAP $5,038  $(15,337) $4,052  $4,329  $3,230  56 %
              
PER SHARE DATA             
Diluted earnings (loss) per share - GAAP $0.19  $(0.60) $0.16  $0.17  $0.13    
Diluted earnings per share - operating (2) 0.19  0.08  0.16  0.17  0.13    
Book value per share 11.91  11.99  12.63  12.45  12.18    
Tangible book value per common share (3) 10.98  11.05  11.67  11.47  11.16    
              
PERFORMANCE MEASURES             
Return on average equity - GAAP 6.66 %(18.66)%4.96 %5.48 %4.19 %  
Return on average equity - operating (2) 6.66  2.51  4.96  5.48  4.19    
Return on average assets - GAAP 0.76  (2.24) 0.60  0.63  0.48    
Return on average assets - operating (2) 0.76  0.30  0.60  0.63  0.48    
Taxable equivalent net interest margin 3.51  3.39  3.26  3.26  3.20    
Efficiency ratio 72.13  83.45  73.65  68.37  76.78    
              
CAPITAL             
Average equity to average assets 11.34 %11.99 %11.99 %11.47 %11.44 %  
Tangible common equity to tangible assets 10.50  9.91  11.48  10.99  10.27    
Tier 1 capital ratio 11.2 (5)11.2  11.3  10.9  10.7    
Total risk based capital ratio 14.2 (5)14.1  14.3  14.0  13.8    
Number of common shares outstanding - basic 25,772,208  25,712,909  25,716,418  25,654,521  25,535,013    
Number of common shares outstanding - diluted 26,000,216  25,891,225  25,967,575  25,931,671  25,836,809    
              
ASSET QUALITY             
Allowance for loan losses to loans held for investment 1.01 %1.00 %0.99 %1.11 %1.05 %  
Net charge-offs to average loans (4) 0.05  (0.04) 0.68  0.01  0.26    
Non-performing assets to total assets 0.13  0.14  0.23  0.52  0.21    
              
(1)Interest income on tax-exempt securities has been increased to reflect comparable interest on taxable securities. The rate used was 21% for the quarter ended March 31, 2018 and 35% for all four quarters of 2017, reflecting the statutory federal income tax rates. (2)Excludes revaluation of net deferred tax asset. (3)Excludes effect of acquisition related intangibles. (4)Annualized. (5)Amounts are estimates as of 3/31/18.


ATLANTIC CAPITAL BANCSHARES, INC.      
Consolidated Balance Sheets (unaudited)      
       
  March 31, December 31, March 31,
(in thousands, except share data) 2018 2017 2017
ASSETS      
Cash and due from banks $39,985  $38,086  $34,626 
Interest-bearing deposits in banks 62,787  281,247  158,920 
Other short-term investments 9,669  10,681  20,870 
Cash and cash equivalents 112,441  330,014  214,416 
Investment securities available-for-sale 458,730  449,117  456,942 
Other investments 37,949  32,174  28,331 
Loans held for sale 835  1,487  29,241 
Loans held for investment 1,959,421  1,933,839  1,901,724 
Less: allowance for loan losses (19,885) (19,344) (19,939)
  Loans held for investment, net 1,939,536  1,914,495  1,881,785 
Branch premises held for sale     2,897 
Premises and equipment, net 15,475  12,054  12,308 
Bank owned life insurance 64,014  63,667  62,516 
Goodwill and intangible assets, net 27,485  27,633  29,186 
Other real estate owned 927  1,215  1,869 
Other assets 61,273  59,565  82,587 
Total assets $2,718,665  $2,891,421  $2,802,078 
       
LIABILITIES AND SHAREHOLDERS' EQUITY      
Deposits:      
Noninterest-bearing demand $599,838  $732,442  $606,386 
Interest-bearing checking 302,636  306,331  259,760 
Savings 29,407  26,573  30,756 
Money market 911,449  1,117,891  916,390 
Time 140,594  138,612  150,867 
Brokered deposits 112,376  128,816  209,385 
Deposits to be assumed in branch sale     29,495 
Total deposits 2,096,300  2,450,665  2,203,039 
Federal funds purchased and securities sold under agreements to repurchase 47,855     
Federal Home Loan Bank borrowings 185,000  45,000  217,000 
Long-term debt 49,577  49,535  49,408 
Other liabilities 32,874  37,796  21,664 
Total liabilities 2,411,606  2,582,996  2,491,111 
       
SHAREHOLDERS' EQUITY      
Preferred stock, no par value;  10,000,000 shares authorized; no shares issued and outstanding as of March 31, 2018, December 31, 2017, and March 31, 2017      
Common stock, no par value; 100,000,000 shares authorized; 25,772,208, 25,712,909, and 25,535,013 shares issued and outstanding as of March 31, 2018, December 31, 2017, and March 31, 2017, respectively 300,893  299,474  296,608 
Retained earnings 18,693  12,810  19,766 
Accumulated other comprehensive (loss) income (12,527) (3,859) (5,407)
Total shareholders’ equity 307,059  308,425  310,967 
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $2,718,665  $2,891,421  $2,802,078 


ATLANTIC CAPITAL BANCSHARES, INC.        
Consolidated Statements of Income (unaudited)        
           
(in thousands, except share and per share data) Three months ended
  March 31, 2018 December 31, 2017 September 30, 2017 June 30, 2017 March 31, 2017
INTEREST INCOME          
Loans, including fees $22,675  $22,043  $21,491  $21,361  $19,994 
Investment securities available-for-sale 2,592  2,510  2,298  2,355  2,018 
Interest and dividends on other interest‑earning assets 715  584  562  606  449 
Total interest income 25,982  25,137  24,351  24,322  22,461 
           
INTEREST EXPENSE          
Interest on deposits 3,044  2,856  2,693  2,481  2,047 
Interest on Federal Home Loan Bank advances 509  323  459  452  302 
Interest on federal funds purchased and securities sold under agreements to repurchase 83  26  84  76  36 
Interest on long-term debt 829  823  824  824  823 
Total interest expense 4,465  4,028  4,060  3,833  3,208 
           
NET INTEREST INCOME BEFORE PROVISION FOR LOAN LOSSES 21,517  21,109  20,291  20,489  19,253 
Provision for loan losses 772  282  322  1,980  634 
NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES 20,745  20,827  19,969  18,509  18,619 
           
NONINTEREST  INCOME          
Service charges 1,192  1,206  1,247  1,274  1,349 
Gains (losses) on sale of securities   17  (80)    
Gains (losses) on sale of other assets (46) (46) 44  666  78 
Mortgage income 304  290  320  388  257 
Trust income 518  482  437  488  407 
Derivatives income 114  94  (3) 116  (51)
Bank owned life insurance 369  384  384  384  378 
SBA lending activities 1,302  843  888  1,171  1,227 
Gains on sale of branches       302   
Other noninterest income 230  298  240  498  212 
Total noninterest income 3,983  3,568  3,477  5,287  3,857 
           
NONINTEREST EXPENSE          
Salaries and employee benefits 12,077  13,298  10,409  10,603  11,065 
Occupancy 1,355  1,156  1,129  1,074  1,230 
Equipment and software 787  872  776  996  805 
Professional services 832  1,280  1,595  973  904 
Postage, printing and supplies 58  114  63  78  85 
Communications and data processing 1,043  1,111  982  1,069  987 
Marketing and business development 190  225  272  179  270 
FDIC premiums 147  212  308  132  314 
Merger and conversion costs       304   
Amortization of intangibles 343  367  391  425  470 
Foreclosed property/problem asset expense 282  7  7  107  3 
Other noninterest expense 1,278  1,952  1,572  1,683  1,611 
Total noninterest expense 18,392  20,594  17,504  17,623  17,744 
           
INCOME BEFORE PROVISION FOR INCOME TAXES 6,336  3,801  5,942  6,173  4,732 
Provision for income taxes 1,298  19,138  1,890  1,844  1,502 
NET INCOME (LOSS) $5,038  $(15,337) $4,052  $4,329  $3,230 
           
Net income (loss) per common share ‑ basic $0.20  $(0.60) $0.16  $0.17  $0.13 
Net income (loss) per common share ‑ diluted $0.19  $(0.60) $0.16  $0.17  $0.13 
           
Weighted average shares - basic 25,750,824  25,723,548  25,699,179  25,621,910  25,320,690 
Weighted average shares - diluted 25,945,773  25,888,064  25,890,779  25,831,281  25,672,286 


ATLANTIC CAPITAL BANCSHARES, INC.     
Average Balance Sheets and Net Interest Margin Analysis     
Selected Financial Information     
    
   Three months ended 
  March 31, 2018  December 31, 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 $78,207  $397  2.06 % $113,553  $302  1.06 %
Other short-term investments 10,346  63  2.47   8,532  40  1.86  
Investment securities:              
  Taxable investment securities 375,771  2,116  2.28   378,859  2,024  2.12  
  Non-taxable investment securities(1) 78,146  579  3.00   81,410  699  3.41  
Total investment securities 453,917  2,695  2.41   460,269  2,723  2.35  
Total loans 1,938,953  22,675  4.74   1,898,745  22,043  4.61  
FHLB and FRB stock 17,895  255  5.78   16,693  242  5.75  
  Total interest-earning assets 2,499,318  26,085  4.23   2,497,792  25,350  4.03  
Non-earning assets 205,504       222,278      
  Total assets $2,704,822       $2,720,070      
Liabilities              
Interest bearing deposits:              
NOW, money market, and savings 1,257,580  2,251  0.73   1,276,116  2,140  0.67  
Time deposits 139,788  314  0.91   140,921  301  0.85  
Brokered deposits 117,787  479  1.65   128,594  415  1.28  
Total interest-bearing deposits 1,515,155  3,044  0.81   1,545,631  2,856  0.73  
Total borrowings 156,822  592  1.53   111,879  349  1.24  
Total long-term debt 49,550  829  6.79   49,507  823  6.60  
  Total interest-bearing liabilities 1,721,527  4,465  1.05   1,707,017  4,028  0.94  
Demand deposits 638,730       649,218      
Other liabilities 37,744       37,776      
Shareholders' equity 306,821       326,059      
  Total liabilities and shareholders' equity $2,704,822       $2,720,070      
Net interest spread     3.18 %     3.09 %
Net interest income and net interest margin(2)   $21,620  3.51 %   $21,322  3.39 %
               
Non-taxable equivalent net interest margin     3.49 %     3.35 %
               
(1) Interest revenue on tax-exempt securities has been increased to reflect comparable interest on taxable securities. The rate used was 21% for the three months ended March 31, 2018 and 35% for the three months ended December 31, 2017, reflecting the statutory federal income tax rates. 
(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) March 31, 2018 December 31, 2017 September 30, 2017 June 30, 2017 March 31, 2017 Linked Quarter Change Year Over Year Change
               
Loans held for sale              
Loans held for sale $835  $1,487  $3,274  $1,744  $1,297  $(652) $(462)
Branch loans held for sale         27,944    (27,944)
Total loans held for sale $835  $1,487  $3,274  $1,744  $29,241  $(652) $(28,406)
               
Loans held for investment              
Commercial loans:              
Commercial and industrial $636,181  $615,359  $562,426  $578,888  $544,911  $20,822  $91,270 
Commercial real estate:              
Multifamily 99,227  99,553  91,219  113,571  108,215  (326) (8,988)
Owner occupied 353,235  346,746  348,447  351,733  348,888  6,489  4,347 
Investment 461,638  494,116  505,188  517,571  478,485  (32,478) (16,847)
Construction and land:              
1-4 family residential construction 6,571  6,906  9,644  11,711  11,799  (335) (5,228)
Other construction, development, and land 139,333  108,589  122,436  113,347  123,838  30,744  15,495 
Mortgage warehouse loans 44,575  39,981  41,551  47,992  58,357  4,594  (13,782)
Total commercial loans 1,740,760  1,711,250  1,680,911  1,734,813  1,674,493  29,510  66,267 
               
Residential:              
Residential mortgages 105,255  104,484  101,976  101,798  99,665  771  5,590 
Home equity 70,712  76,244  78,773  79,769  81,438  (5,532) (10,726)
Total residential loans 175,967  180,728  180,749  181,567  181,103  (4,761) (5,136)
               
Consumer 30,966  29,393  31,750  31,981  32,525  1,573  (1,559)
Other 15,181  16,278  16,106  18,013  17,611  (1,097) (2,430)
  1,962,874  1,937,649  1,909,516  1,966,374  1,905,732  25,225  57,142 
Less net deferred fees and other unearned income (3,453) (3,810) (4,084) (4,283) (4,008) 357  555 
Total loans held for investment $1,959,421  $1,933,839  $1,905,432  $1,962,091  $1,901,724  $25,582  $57,697 
               
Total loans $1,960,256  $1,935,326  $1,908,706  $1,963,835  $1,930,965  $24,930  $29,291 
               


ATLANTIC CAPITAL BANCSHARES, INC. 
Allowance for Loan Losses Activity and Credit Quality 
            
  2018 2017 
(dollars in thousands) First  Quarter Fourth Quarter Third Quarter Second Quarter First  Quarter 
            
Balance at beginning of period $19,344  $18,870  $21,870  $19,939  $20,595  
Provision for loan losses 811  312  314  2,048  565  
Provision for PCI loan losses (39) (30) 8  (68) 69  
Loans charged-off:           
Commercial and industrial (126)   (3,292)   (781) 
Commercial real estate         (132) 
Construction and land     (16)     
Residential mortgages (70)       (46) 
Home equity (58)   (31) (8)   
Consumer (3) (13) (7) (57) (332) 
Other           
Total loans charged-off (257) (13) (3,346) (65) (1,291) 
Recoveries on loans previously charged-off:           
Commercial and industrial 19  192  1  7    
Commercial real estate       2    
Construction and land   1  15      
Residential mortgages       1    
Home equity       1    
Consumer 7  12  8  5  1  
Other           
Total recoveries 26  205  24  16  1  
Net charge-offs $(231) $192  $(3,322) $(49) $(1,290) 
Balance at period end $19,885  $19,344  $18,870  $21,870  $19,939  
            
Loans held for investment           
PCI Loans $11,837  $11,754  $12,090  $11,510  $11,841  
Non-PCI Loans 1,947,584  1,922,085  1,893,342  1,950,581  1,889,883  
  $1,959,421  $1,933,839  $1,905,432  $1,962,091  $1,901,724  
            
Non-performing loans - PCI $1,217  $1,211  $1,289  $1,310  $1,684  
            
Non-performing loans - Non-PCI $2,501  $2,912  $4,553  $12,300  $3,983  
Foreclosed properties (OREO) 927  1,215  1,494  1,819  1,869  
Total nonperforming assets $3,428  $4,127  $6,047  $14,119  $5,852  
            
Allowance for loan losses to loans held for investment 1.01 %1.00 %0.99 %1.11 %1.05 %
Net charge-offs to average loans (1) 0.05  (0.04) 0.68  0.01  0.26  
Nonperforming loans as a percentage of total loans (2) 0.13  0.15  0.24  0.63  0.21  
Nonperforming assets as a percentage of total assets (2) 0.13  0.14  0.23  0.52  0.21  
            
(1)Annualized.  (2)Excludes non-performing PCI loans. 


ATLANTIC CAPITAL BANCSHARES, INC.          
Period End Deposits          
               
(dollars in thousands) March 31, 2018 December 31, 2017 September 30, 2017 June 30,  2017 March 31, 2017 Linked Quarter Change Year Over Year Change
               
DDA $599,838  $732,442  $599,292  $612,744  $606,386  $(132,604) $(6,548)
NOW 302,636  306,331  270,740  250,254  259,760  (3,695) 42,876 
Savings 29,407  26,573  30,131  30,170  30,756  2,834  (1,349)
Money Market 911,449  1,117,891  865,238  882,824  916,390  (206,442) (4,941)
Time 140,594  138,612  144,250  142,915  150,867  1,982  (10,273)
Brokered 112,376  128,816  193,994  195,047  209,385  (16,440) (97,009)
Deposits to be assumed in branch sale         29,495    (29,495)
Total Deposits $2,096,300  $2,450,665  $2,103,645  $2,113,954  $2,203,039  $(354,365) $(106,739)
               
Payments Clients $311,943  $405,873  $239,079  $250,104  $321,899  $(93,930) $(9,956)
               
Average Deposits(1)              
               
  2018 2017 Linked Quarter Change Year Over Year Change
(dollars in thousands) First  Quarter Fourth Quarter Third Quarter Second Quarter First  Quarter  
               
DDA $638,730  $649,218  $628,029  $626,330  $620,325  $(10,488) $18,405 
NOW 329,171  338,741  291,810  293,160  290,862  (9,570) 38,309 
Savings 29,609  29,851  30,236  30,468  30,306  (242) (697)
Money Market 898,800  907,524  870,618  860,116  815,920  (8,724) 82,880 
Time 139,788  140,921  143,862  149,898  163,021  (1,133) (23,233)
Brokered 117,787  128,594  156,708  198,703  191,558  (10,807) (73,771)
Total Deposits $2,153,885  $2,194,849  $2,121,263  $2,158,675  $2,111,992  $(40,964) $41,893 
               
Payments Clients $256,794  $234,558  $209,851  $244,157  $273,630  $22,236  $(16,836)
               
Noninterest bearing deposits as a percentage of average deposits 29.7% 29.6% 29.6% 29.0% 29.4%    
Cost of deposits 0.57% 0.52% 0.50% 0.46% 0.39%    
               
(1) Includes average balances of deposits to be assumed in branch sale.        


ATLANTIC CAPITAL BANCSHARES, INC. 
Non-GAAP Performance and Financial Measures Reconciliation 
            
            
  2018 2017 
(in thousands, except share and per share data) First Quarter Fourth Quarter Third Quarter Second Quarter First Quarter 
            
Taxable equivalent interest income reconciliation           
Interest income - GAAP $25,982  $25,137  $24,351  $24,322  $22,461  
Taxable equivalent adjustment 103  213  215  223  255  
Interest income - taxable equivalent $26,085  $25,350  $24,566  $24,545  $22,716  
            
Taxable equivalent net interest income reconciliation           
Net interest income - GAAP $21,517  $21,109  $20,291  $20,489  $19,253  
Taxable equivalent adjustment 103  213  215  223  255  
Net interest income - taxable equivalent $21,620  $21,322  $20,506  $20,712  $19,508  
            
Taxable equivalent net interest margin reconciliation           
Net interest margin - GAAP 3.49 %3.35 %3.23 %3.23 %3.16 %
Impact of taxable equivalent adjustment 0.02  0.04  0.03  0.03  0.04  
Net interest margin - taxable equivalent 3.51 %3.39 %3.26 %3.26 %3.20 %
            
Operating income before income taxes reconciliation           
Income before income taxes - GAAP $6,336  $3,801  $5,942  $6,173  $4,732  
Taxable equivalent adjustment 103  213  215  223  255  
Operating income before income taxes $6,439  $4,014  $6,157  $6,396  $4,987  
            
Operating income tax reconciliation           
Income tax expense - GAAP $1,298  $19,138  $1,890  $1,844  $1,502  
Taxable equivalent adjustment 103  213  215  223  255  
Revaluation of net deferred tax asset   (17,398)       
Operating income tax expense $1,401  $1,953  $2,105  $2,067  $1,757  
            
Operating net income reconciliation           
Net income (loss) - GAAP $5,038  $(15,337) $4,052  $4,329  $3,230  
Revaluation of net deferred tax asset   17,398        
Operating net income $5,038  $2,061  $4,052  $4,329  $3,230  
            
Operating diluted earnings per share reconciliation           
Diluted earnings (loss) per share - GAAP $0.19  $(0.60) $0.16  $0.17  $0.13  
Revaluation of net deferred tax asset   0.68        
Diluted earnings per share - operating $0.19  $0.08  $0.16  $0.17  $0.13  
            
Tangible book value per common share reconciliation           
Total shareholders’ equity $307,059  $308,425  $324,754  $319,435  $310,967  
Intangible assets (24,050) (24,393) (24,760) (25,151) (25,913) 
Total tangible common equity $283,009  $284,032  $299,994  $294,284  $285,054  
Common shares outstanding 25,772,208  25,712,909  25,716,418  25,654,521  25,535,013  
Book value per common share - GAAP $11.91  $11.99  $12.63  $12.45  $12.18  
Tangible book value 10.98  11.05  11.67  11.47  11.16  
            
Return on average equity reconciliation           
Net income (loss) - GAAP $5,038  $(15,337) $4,052  $4,329  $3,230  
Revaluation of net deferred tax asset   17,398        
Operating net income $5,038  $2,061  $4,052  $4,329  $3,230  
Average shareholders' equity $306,821  $326,059  $323,832  $316,825  $308,261  
Return on average equity - GAAP 6.66 %(18.66)%4.96 %5.48 %4.19 %
Return on average equity - operating 6.66  2.51  4.96  5.48  4.19  
            
Return on average assets reconciliation           
Net income (loss) - GAAP $5,038  $(15,337) $4,052  $4,329  $3,230  
Revaluation of net deferred tax asset   17,398        
Operating net income $5,038  $2,061  $4,052  $4,329  $3,230  
Average assets $2,704,822  $2,720,070  $2,701,387  $2,762,389  $2,694,715  
Return on average assets - GAAP 0.76 %(2.24)%0.60 %0.63 %0.48 %
Return on average assets - operating 0.76  0.30  0.60  0.63  0.48  
            
Tangible common equity to tangible assets reconciliation           
Total shareholders’ equity $307,059  $308,425  $324,754  $319,435  $310,967  
Intangible assets (24,050) (24,393) (24,760) (25,151) (25,913) 
Total tangible common equity $283,009  $284,032  $299,994  $294,284  $285,054  
            
Total assets $2,718,665  $2,891,421  $2,638,412  $2,702,575  $2,802,078  
Intangible assets (24,050) (24,393) (24,760) (25,151) (25,913) 
Total tangible assets $2,694,615  $2,867,028  $2,613,652  $2,677,424  $2,776,165  
Tangible common equity to tangible assets 10.50 %9.91 %11.48 %10.99 %10.27 %

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