Attached files
| file | filename |
|---|---|
| 8-K - 8-K - Atlantic Capital Bancshares, Inc. | acb-form8k.htm |
PRESS RELEASE
Contact: | Douglas L. Williams | Patrick T. Oakes |
Chief Executive Officer | Executive Vice President and CFO | |
404-995-6051 | 404-995-6079 | |
doug.williams@atlcapbank.com | patrick.oakes@atlcapbank.com | |
ATLANTIC CAPITAL BANCSHARES REPORTS FOURTH QUARTER 2015 RESULTS
Atlanta, GA - January 29, 2016 - Atlantic Capital Bancshares, Inc. (NASDAQ: ACBI) announced results of the quarter ended December 31, 2015. The Company reported a net loss of $824 thousand, or $(0.05) per diluted share and operating net income of $9.7 million, or operating diluted EPS of $0.62.
Fourth Quarter Highlights
• | Completed the merger of First Security Group, Inc. on October 31, 2015 |
• | Announced divestiture of seven branches in Eastern Tennessee |
• | Reported total assets of $2.6 billion, loans of $1.8 billion and deposits of $2.1 billion as of December 31, 2015 |
• | Achieved tangible book value per share of $10.59 as of December 31, 2015 |
• | Reported net interest margin of 3.11% |
2015 Highlights
• | Legacy Atlantic Capital period-end deposits increased $243 million, or 22% compared to 2014 |
• | Non-interest income increased $3.1 million, or 59%, compared to 2014 |
• | Annual net-charge offs to average loans of 0.05% |
Douglas Williams, Chief Executive Officer, commented, “With the merger with First Security, we met our objectives to provide our shareholders with public market liquidity, and to diversify our business mix and geographic footprint.”
Mr. Williams continued, “We plan to earn superior shareholder returns over the next 24-36 months by building on the solid performance trajectory evident at legacy Atlantic Capital in 2015, and repositioning legacy FSG businesses for improved performance and conformity to our mission of developing a premier regional corporate business and private banking company.”
Merger with First Security Group
On October 31, 2015, Atlantic Capital completed its merger with First Security Group, Inc. (“FSG”). The consideration consisted of approximately $47.1 million in cash and 8.79 million shares of Atlantic Capital common stock, for total consideration of $168 million. The financial results of Atlantic Capital for the three and twelve months ended December 31, 2015 include the operating results of FSG for the two months subsequent to October 31, 2015.
In conjunction with the merger, Atlantic Capital also completed a $25.0 million private placement of Atlantic Capital common stock at $12.60 per share. Atlantic Capital used the proceeds from this private placement as well as from the issuance of a $50.0 million private placement of subordinated debt that was completed on September 28, 2015, to fund the cash portion of the merger consideration. Atlantic Capital acquired approximately $857 million of loans and loans held for sale, and assumed approximately $968 million of deposits with the merger.
Sale of Eastern Tennessee Branches
On December 17, 2015, Atlantic Capital announced the sale of seven legacy FSG branches in Eastern Tennessee. These branch divestitures include the sale of approximately $207 million in deposits, $35.5 million in loans and $7.2 million in other assets. Subject to customary closing conditions, including the receipt of all necessary regulatory approvals, the transactions are expected to be completed during the second quarter of 2016.
Results of Operations
Atlantic Capital reported a net loss of $824 thousand, or a loss of $0.05 per diluted share, for the full year 2015, compared to net income of $7.5 million, or $0.55 per diluted share for the full year 2014. Operating net income totaled $9.7 million, or $0.62 per diluted share, for 2015 compared to $7.5 million, or $0.55 per diluted share, for 2014. Operating net income excludes merger related expenses and the fourth quarter 2015 loan loss provision expense related to the necessary increase in the allowance for loan losses due to the increase in loans resulting from the acquisition of FSG.
For the fourth quarter of 2015, Atlantic Capital recorded a net loss of $7.7 million, or a diluted loss per share of $0.37, compared to net income of $2.2 million, or $0.16 earnings per diluted share, in the third quarter of 2015. Operating net income, totaled $1.63 million, or $0.08 per diluted share, for the fourth quarter of 2015, compared to $2.67 million, or $0.19 per diluted share in the third quarter of 2015. Operating net income excludes merger related expenses and the loan loss provision expense related to the necessary increase in the allowance for loan losses due to the increase in loans resulting from the acquisition of FSG.
Net interest income improved to $15.9 million in the fourth quarter of 2015 from $9.5 million in the third quarter of 2015, primarily due to the impact of the merger with FSG. Net accretion income on acquired loans totaled $625 thousand and premium amortization on acquired time deposits totaled $181 thousand in the fourth quarter of 2015. Net interest margin increased from 2.93% in the third quarter of 2015 to 3.11% in the fourth quarter of 2015. The discount accretion on acquired loans and premium amortization on time deposits contributed 16 basis points to the increase in the net interest margin.
At December, 31, 2015, the allowance for loan losses was $19.2 million, or 1.07% of total loans, compared to $11.9 million, or 1.13% of total loans as of September 30, 2015. The increase in the allowance was primarily due to the acquired FSG loan portfolio recorded in the fourth quarter of 2015. Annualized net charge-offs were 0.15% of average loans in the fourth quarter of 2015 and (0.01)% for the third quarter of 2015. The provision for loan losses was $7.9 million in the fourth quarter of 2015 compared to $(137) thousand in the third quarter of 2015. The higher provision expense was mainly due to the necessary allowance for the acquired FSG portfolio.
Non-interest income improved to $3.4 million in the fourth quarter of 2015 from $1.7 million in the third quarter of 2015. Service charges and fees on deposit accounts increased by $744 thousand compared to the third quarter of 2015, primarily due to the addition of FSG deposit accounts. Two new lines of business resulting from the merger - mortgage banking and trust - contributed $163 thousand and $192 thousand, respectively, during the fourth quarter of 2015. SBA lending activities, which includes gains on sales of the guaranteed portion of certain SBA loans as well as servicing fees on previously sold SBA loans, contributed $904 thousand to non-interest income during the fourth quarter of 2015, up $159 thousand from the prior quarter.
The TriNet division originates commercial real estate loans, of which a portion are sold each quarter. During the fourth quarter of 2015, Atlantic Capital sold approximately $60 million in TriNet loans for a gain of $1.1 million that was included in the day one fair value mark of the FSG portfolio at acquisition and was not included in non-interest income for the fourth quarter of 2015.
Non-interest expense totaled $22.2 million in the fourth quarter of 2015 compared to $7.7 million in the third quarter of 2015. The increase in expenses was primarily due to the addition of FSG and $6.3 million in merger related charges, which included professional fees, severance, and other expenses required to close the acquisition. Operating non-interest expense, which excludes merger related charges, increased by $9.0 million. Salaries and employee benefits for the fourth quarter of 2015 totaled $9.8 million, an increase of $4.9 million compared to the previous quarter. The increase included $1.1 million in non-merger related severance payments and one-time bonuses. Other non-interest expense increased $1.9 million from the third quarter of 2015, and included a $372 thousand provision for unfunded commitments.
Total loans, including loans held for sale, increased $839.7 million from September 30, 2015, to $1.89 billion as of December 31, 2015. The December 31, 2015 balance included $60 million in TriNet loans held for sale and $35 million in branch loans held for sale in connection with the pending sale of the seven Eastern Tennessee branches. The overall increase in loans was due to the addition of the FSG loan portfolio.
Total nonperforming assets as a percentage of total assets was 0.45% as of December 31, 2015, which was an increase from 0.00% as of September 30, 2015. The increase in nonperforming loans was primarily driven by the addition of $4.2 million from the acquired FSG loan portfolio and other real estate and $7.7 million increase in the legacy Atlantic Capital loan portfolio.
Deposits increased $923 million from September 30, 2015, to $2.05 billion at December 31, 2015. The increase in deposits was primarily due to the addition of the FSG deposit portfolio and an increase in the year-end legacy Atlantic Capital payments business.
Earnings Conference Call
The Company will host a conference call at 10:00 a.m. EST on Friday, January 29, 2016, to discuss the financial results for the quarter ended December 31, 2015. Individuals wishing to participate in the conference call may do so by dialing 844.868.8848 from the United States and entering Conference ID 25051485. 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 provision for loan losses, (iv) operating efficiency ratio, (v) operating return on assets; (vi) operating return on equity and (vii) tangible common equity, 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, provision for loan losses for the FSG portfolio, and the income tax effect of adjustments. Operating non-interest expense excludes merger and conversion costs from non-interest expense. The operating efficiency ratio excludes merger and conversion costs from the efficiency ratio. Operating provision for loan losses excludes the provision related to loans acquired from FSG. Tangible common equity excludes goodwill and other intangible assets, from shareholders' equity.
Management believes that non-GAAP financial measures provide additional useful information that allows readers to evaluate the ongoing performance of the Company and provide meaningful comparisons to its peers. Non-GAAP financial measures should not be considered as an alternative to any measure of performance or financial condition as promulgated under 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.
Forward-Looking Statements
This news release contains, and Atlantic Capital and its management may make, certain statements that constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. These statements can be identified by the fact that they do not relate strictly to historical or current facts and often use words such as “may,” “plan,” “contemplate,” “anticipate,” “believe,” “intend,” “continue,” expect,” “project,” “predict,” “estimate,” “could,” “should,” “would,” “will,” “goal,” “target” and similar expressions. These forward-looking statements express management's current expectations or forecasts of future events and, by their nature, are subject to risks and uncertainties and there are a number of factors that could cause actual results to differ materially from those in such statements. Factors that might cause such a difference include, but are not limited to: increases in expected costs or decreases in expected savings or difficulties related to merger integration matters; inability to identify and successfully negotiate and complete additional combinations with other potential merger partners or to successfully integrate such businesses into Atlantic Capital, including the company’s ability to adequately estimate or to realize the benefits and cost savings from and limit any unexpected liabilities acquired as a result of any such business combinations; failure to generate an adequate return on investment related to new branches or other hiring initiatives; inability to generate future organic growth in loan balances, retail banking, wealth management, mortgage banking or capital markets results through the hiring of new personnel, development of new products, including new online and mobile banking platforms for treasury services, opening of de novo branches or otherwise; inability to capitalize on identified revenue enhancements or expense management opportunities, including the inability to achieve targeted adjusted non-interest expense to adjusted operating revenue targets; inability to generate future ATM and card income from marketing expenses; variability in the performance of covered loans and associated loss-share related expenses; the effects of negative or soft economic conditions, including stress in the commercial real estate markets or failure of continued recovery in the residential real estate markets; changes in consumer and investor confidence and the related impact on financial markets and institutions; changes in interest rates; failure of assumptions underlying non-interest expense levels; failure of assumptions underlying the establishment of allowances for loan losses; deterioration in the credit quality of the loan portfolio or in the value of the collateral securing those loans; deterioration in the value of securities held in the investment securities portfolio; the possibility of recognizing other than temporary impairments on holdings of collateralized loan obligation securities as a result of the Volcker Rule; the impacts on Atlantic Capital of a potential increasing rate environment; the potential impacts of any government shutdown or debt ceiling impasse, including the risk of a U.S. credit rating downgrade or default, or continued global economic instability, which could cause disruptions in the financial markets, impact interest rates, and cause other potential unforeseen consequences; fluctuations in the market price of the common stock, regulatory, legal and contractual requirements of Atlantic Capital, other uses of capital, the company’s financial performance, market conditions generally, and future actions by the board of directors, in each case impacting repurchases of common stock or declaration of dividends; legal and regulatory developments, including changes in the federal risk-based capital rules; increased competition from both banks and nonbanks; changes in accounting standards, rules and interpretations, inaccurate estimates or assumptions in accounting, including acquisition accounting fair market value assumptions and accounting for purchased credit-impaired loans, and the impact on Atlantic Capital’s financial statements; and management’s ability to effectively manage credit risk, market risk, operational risk, legal risk, and regulatory and compliance risk. Forward-looking statements speak only as of the date they are made, and Atlantic Capital undertakes no obligation to update any forward-looking statement to reflect the impact of circumstances or events that arise after the date the forward-looking statement was made.
About Atlantic Capital Bancshares
Atlantic Capital Bancshares, Inc., with assets of $2.6 billion, is a publicly-traded bank holding company headquartered in Atlanta, Georgia with corporate offices in Chattanooga and Knoxville, Tennessee. Operating under the “Atlantic Capital” brand in Atlanta and “FSGBank” brand in east Tennessee and northwest Georgia, the company provides lending, treasury management and capital markets services to small and mid-sized businesses. The company’s banking offices also provide mortgage, trust and other banking services to private and individual clients.
ATLANTIC CAPITAL BANCSHARES, INC. | |||||||||||||||||||||||||||||||||||
Selected Financial Information | |||||||||||||||||||||||||||||||||||
2015 | 2014 | Fourth Quarter | For the year ended December 31, | YTD | |||||||||||||||||||||||||||||||
(in thousands, except share and per share data) | Fourth Quarter | Third Quarter | Second Quarter | First Quarter | Fourth Quarter | 2015 to 2014 Change | 2015 | 2014 | 2015 to 2014 Change | ||||||||||||||||||||||||||
INCOME SUMMARY | |||||||||||||||||||||||||||||||||||
Interest income | $ | 18,240 | $ | 10,334 | $ | 10,481 | $ | 9,912 | $ | 9,878 | 85 | % | $ | 48,967 | $ | 36,542 | 34 | % | |||||||||||||||||
Interest expense | 2,352 | 840 | 911 | 880 | 891 | 164 | 4,983 | 3,449 | 44 | ||||||||||||||||||||||||||
Net interest income | 15,888 | 9,494 | 9,570 | 9,032 | 8,987 | 77 | 43,984 | 33,093 | 33 | ||||||||||||||||||||||||||
Operating provision for loan losses (1) | 1,107 | (137 | ) | 185 | 364 | 19 | 5,726 | 1,519 | 488 | 211 | |||||||||||||||||||||||||
Net interest income after provision for loan losses | 14,781 | 9,631 | 9,385 | 8,668 | 8,968 | 65 | 42,465 | 32,605 | 30 | ||||||||||||||||||||||||||
Noninterest income | 3,357 | 1,729 | 3,028 | 1,182 | 1,502 | 124 | 9,296 | 5,342 | 74 | ||||||||||||||||||||||||||
Operating noninterest expense (2) | 15,921 | 6,953 | 7,065 | 6,694 | 7,175 | 122 | 36,633 | 26,574 | 38 | ||||||||||||||||||||||||||
Operating income before income taxes | 2,217 | 4,407 | 5,348 | 3,156 | 3,295 | (33 | ) | 15,128 | 11,373 | 33 | |||||||||||||||||||||||||
Operating income tax expense (benefit) | 583 | 1,738 | 1,980 | 1,129 | 1,144 | (49 | ) | 5,435 | 3,857 | 41 | |||||||||||||||||||||||||
Operating net income (2) | 1,634 | 2,669 | 3,368 | 2,027 | 2,151 | (24 | ) | 9,693 | 7,516 | 29 | |||||||||||||||||||||||||
Provision for acquired non PCI FSG loans | 4,153 | — | — | — | — | — | 4,153 | — | — | ||||||||||||||||||||||||||
Merger related charges, net of income tax | 5,147 | 443 | 466 | 313 | — | — | 6,364 | — | — | ||||||||||||||||||||||||||
Net income (loss) - GAAP | $ | (7,666 | ) | $ | 2,226 | $ | 2,902 | $ | 1,714 | $ | 2,151 | (456 | ) | % | $ | (824 | ) | $ | 7,516 | (111 | ) | % | |||||||||||||
PER SHARE DATA | |||||||||||||||||||||||||||||||||||
Diluted earnings (loss) per share - GAAP | $ | (0.37 | ) | $ | 0.16 | $ | 0.21 | $ | 0.12 | $ | 0.16 | $ | (0.05 | ) | $ | 0.55 | |||||||||||||||||||
Diluted earnings per share - operating (1)(2) | 0.08 | 0.19 | 0.24 | 0.15 | 0.16 | 0.62 | 0.55 | ||||||||||||||||||||||||||||
Book value per share | 11.87 | 11.05 | 10.8 | 10.67 | 10.48 | 11.87 | 10.48 | ||||||||||||||||||||||||||||
Tangible book value per share (3) | 10.59 | 10.95 | 10.72 | 10.61 | 10.41 | 10.59 | 10.41 | ||||||||||||||||||||||||||||
PERFORMANCE MEASURES | |||||||||||||||||||||||||||||||||||
Return on average equity - GAAP | (12.42 | ) | % | 6.08 | % | 7.99 | % | 4.83 | % | 6.18 | % | (0.48 | ) | % | 5.54 | % | |||||||||||||||||||
Return on average equity - operating (1)(2) | 2.65 | 7.29 | 9.28 | 5.71 | 6.18 | 5.68 | 5.54 | ||||||||||||||||||||||||||||
Return on average assets - GAAP | (1.36 | ) | 0.66 | 0.84 | 0.51 | 0.66 | (0.05 | ) | 0.61 | ||||||||||||||||||||||||||
Return on average assets operating (1)(2) | 0.29 | 0.79 | 0.98 | 0.60 | 0.66 | 0.61 | 0.61 | ||||||||||||||||||||||||||||
Net interest margin | 3.11 | 2.93 | 2.92 | 2.86 | 2.86 | 2.98 | 2.85 | ||||||||||||||||||||||||||||
Efficiency ratio - GAAP | 115.54 | 68.35 | 61.95 | 69.66 | 68.89 | 84.33 | 69.14 | ||||||||||||||||||||||||||||
Efficiency ratio - operating (1)(2) | 82.73 | 61.95 | 56.08 | 65.54 | 68.89 | 68.76 | 69.14 | ||||||||||||||||||||||||||||
CAPITAL | |||||||||||||||||||||||||||||||||||
Average equity to average assets | 10.98 | % | 10.85 | % | 10.53 | % | 10.54 | % | 10.62 | % | 10.79 | % | 11.06 | % | |||||||||||||||||||||
Tangible common equity to tangible assets | 9.93 | 10.76 | 10.6 | 10.39 | 10.67 | 9.93 | 10.67 | ||||||||||||||||||||||||||||
Tier 1 capital ratio | 8.7 | (5) | 11.0 | 10.4 | 10.1 | 11.0 | 8.7 | (5) | 11.0 | ||||||||||||||||||||||||||
Total risk based capital ratio | 11.6 | (5) | 15.5 | 11.3 | 11.0 | 11.9 | 11.6 | (5) | 11.9 | ||||||||||||||||||||||||||
Number of common shares outstanding - basic | 24,425,546 | 13,562,125 | 13,562,125 | 13,508,480 | 13,453,820 | 24,425,546 | 13,453,820 | ||||||||||||||||||||||||||||
Number of common shares outstanding - diluted | 25,059,823 | 13,904,395 | 13,904,395 | 13,850,750 | 13,650,580 | 25,059,823 | 13,650,580 | ||||||||||||||||||||||||||||
ASSET QUALITY | |||||||||||||||||||||||||||||||||||
Allowance for loan losses to loans | 1.07 | % | 1.13 | % | 1.13 | % | 1.09 | % | 1.10 | % | 1.07 | % | 1.10 | % | |||||||||||||||||||||
Net charge-offs to average loans (4) | 0.15 | (0.01 | ) | — | (0.01 | ) | (0.04 | ) | 0.05 | (0.01 | ) | ||||||||||||||||||||||||
NPAs to total assets | 0.45 | — | — | 0.11 | 0.12 | 0.45 | 0.12 | ||||||||||||||||||||||||||||
AVERAGE BALANCES | |||||||||||||||||||||||||||||||||||
Loans | $ | 1,583,280 | $ | 1,052,745 | $ | 1,062,736 | $ | 1,040,638 | $ | 1,012,309 | 56 | % | $ | 1,184,689 | $ | 918,901 | 29 | % | |||||||||||||||||
Investment securities | 255,312 | 134,016 | 139,707 | 134,638 | 131,769 | 94 | 165,796 | 143,727 | 15 | ||||||||||||||||||||||||||
Total assets | 2,248,614 | 1,349,997 | 1,379,150 | 1,346,437 | 1,311,506 | 71 | 1,581,687 | 1,227,230 | 29 | ||||||||||||||||||||||||||
Deposits | 1,886,292 | 1,101,434 | 1,113,333 | 1,085,749 | 1,067,831 | 77 | 1,296,763 | 983,772 | 32 | ||||||||||||||||||||||||||
Shareholders’ equity | 246,842 | 146,430 | 145,210 | 141,930 | 139,220 | 77 | 170,675 | 135,687 | 26 | ||||||||||||||||||||||||||
Number of common shares - basic | 20,494,895 | 13,562,125 | 13,552,820 | 13,465,579 | 13,453,820 | 52 | 15,283,437 | 13,445,122 | 14 | ||||||||||||||||||||||||||
Number of common shares - diluted | 21,004,577 | 13,904,395 | 13,895,090 | 13,798,344 | 13,650,580 | 54 | 15,663,865 | 13,641,882 | 15 | ||||||||||||||||||||||||||
(1) Excludes provision for acquired non PCI FSG loans (2) Excludes merger related charges (3) Excludes effect of servicing asset and acquisition related intangibles. (4) Annualized. (5) Amounts are estimates as of 12/31/15. | |||||||||||||||||||||||||||||||||||
ATLANTIC CAPITAL BANCSHARES, INC. | ||||||||||||
Consolidated Balance Sheets (unaudited) | ||||||||||||
December 31, | September 30, | December 31, | ||||||||||
(in thousands, except share and per share data) | 2015 | 2015 | 2014 | |||||||||
ASSETS | ||||||||||||
Cash and due from banks | $ | 58,319 | $ | 45,971 | $ | 36,490 | ||||||
Interest-bearing deposits in banks | 130,900 | 90,695 | 12,137 | |||||||||
Other short-term investments | 13,666 | 24,135 | 45,623 | |||||||||
Cash and cash equivalents | 202,885 | 160,801 | 94,250 | |||||||||
Investment securities available-for-sale | 346,221 | 127,168 | 133,437 | |||||||||
Other investments | 8,182 | 3,011 | 3,653 | |||||||||
Loans held for sale | 59,995 | — | — | |||||||||
Branch loans held for sale | 35,470 | — | — | |||||||||
Loans held for investment | 1,790,669 | 1,046,437 | 1,039,713 | |||||||||
Less: allowance for loan losses | (19,153 | ) | (11,862 | ) | (11,421 | ) | ||||||
Loans, net | 1,771,516 | 1,034,575 | 1,028,292 | |||||||||
Branch premises held for sale | 7,200 | — | — | |||||||||
Premises and equipment, net | 23,145 | 3,138 | 3,612 | |||||||||
Bank owned life insurance | 60,608 | 30,479 | 30,571 | |||||||||
Goodwill and intangible assets, net | 31,253 | 1,259 | 782 | |||||||||
Other real estate owned | 1,982 | 27 | 1,531 | |||||||||
Other assets | 87,721 | 21,240 | 18,731 | |||||||||
Total assets | $ | 2,636,178 | $ | 1,381,698 | $ | 1,314,859 | ||||||
LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||||||||
Liabilities: | ||||||||||||
Deposits: | ||||||||||||
Noninterest-bearing demand | $ | 544,561 | $ | 328,065 | $ | 320,346 | ||||||
Interest-bearing checking | 235,682 | 135,350 | 91,709 | |||||||||
Savings | 28,922 | 321 | 304 | |||||||||
Money market | 875,441 | 550,879 | 572,658 | |||||||||
Time | 183,206 | 15,434 | 16,129 | |||||||||
Brokered deposits | 183,810 | 98,559 | 104,699 | |||||||||
Total deposits | 2,051,622 | 1,128,608 | 1,105,845 | |||||||||
Branch deposits held for sale | 206,940 | — | — | |||||||||
Federal Home Loan Bank borrowings | — | 43,000 | 56,517 | |||||||||
Federal funds purchased and securities sold under agreements to repurchase | 11,931 | — | — | |||||||||
Long-term debt | 49,197 | 49,226 | — | |||||||||
Other liabilities | 26,506 | 11,055 | 11,568 | |||||||||
Total liabilities | 2,346,196 | 1,231,889 | 1,173,930 | |||||||||
SHAREHOLDERS' EQUITY | ||||||||||||
Preferred stock, no par value; 10,000,000 shares authorized; 0 shares issued | ||||||||||||
and outstanding at December 31, 2015 and 2014 | — | — | — | |||||||||
Common stock, no par value; 100,000,000 shares authorized; 24,546,794 | ||||||||||||
shares issued and 24,425,546 shares outstanding at December 31, 2015, | ||||||||||||
and 13,497,118 shares issued and 13,453,820 shares outstanding at December 31, 2014 | 286,420 | 136,941 | 135,860 | |||||||||
Retained earnings | 3,636 | 11,302 | 4,460 | |||||||||
Accumulated other comprehensive income (loss) | (74 | ) | 1,566 | 609 | ||||||||
Total shareholders’ equity | 289,982 | 149,809 | 140,929 | |||||||||
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | $ | 2,636,178 | $ | 1,381,698 | $ | 1,314,859 | ||||||
ATLANTIC CAPITAL BANCSHARES, INC. | ||||||||||||||||||||
Consolidated Statements of Income (unaudited) | ||||||||||||||||||||
(in thousands, except per share data) | Three months ended | Twelve months ended | ||||||||||||||||||
December 31, 2015 | September 30, 2014 | December 31, 2014 | December 31, 2015 | December 31, 2014 | ||||||||||||||||
INTEREST INCOME | ||||||||||||||||||||
Loans, including fees | $ | 16,688 | $ | 9,423 | $ | 8,978 | $ | 44,562 | $ | 32,762 | ||||||||||
Investment securities available-for-sale | 1,224 | 664 | 715 | 3,301 | 3,109 | |||||||||||||||
Interest and dividends on other interest‑earning assets | 328 | 247 | 185 | 1,104 | 671 | |||||||||||||||
Total interest income | 18,240 | 10,334 | 9,878 | 48,967 | 36,542 | |||||||||||||||
INTEREST EXPENSE | ||||||||||||||||||||
Interest on deposits | 1,416 | 751 | 756 | 3,678 | 2,889 | |||||||||||||||
Interest on Federal Home Loan Bank advances | 7 | 52 | 109 | 290 | 437 | |||||||||||||||
Interest on federal funds sold and securities sold under | ||||||||||||||||||||
agreements to repurchase | 10 | 20 | 26 | 79 | 123 | |||||||||||||||
Interest on long-term debt | 841 | 17 | — | 858 | — | |||||||||||||||
Other | 78 | — | — | 78 | — | |||||||||||||||
Total interest expense | 2,352 | 840 | 891 | 4,983 | 3,449 | |||||||||||||||
NET INTEREST INCOME BEFORE PROVISION FOR LOAN LOSSES | 15,888 | 9,494 | 8,987 | 43,984 | 33,093 | |||||||||||||||
Provision for loan losses | 7,871 | (137 | ) | 19 | 8,283 | 488 | ||||||||||||||
NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES | 8,017 | 9,631 | 8,968 | 35,701 | 32,605 | |||||||||||||||
NONINTEREST INCOME | ||||||||||||||||||||
Service charges | 1,265 | 521 | 336 | 2,613 | 1,170 | |||||||||||||||
Gains on sale of securities available-for-sale | — | 10 | 15 | 10 | 59 | |||||||||||||||
Mortgage income | 163 | — | — | 163 | — | |||||||||||||||
Trust income | 192 | — | — | 192 | — | |||||||||||||||
Derivatives income | 89 | 67 | 183 | 304 | 245 | |||||||||||||||
Bank owned life insurance | 365 | 227 | 241 | 2,159 | 932 | |||||||||||||||
SBA lending activities | 904 | 745 | 572 | 2,910 | 2,264 | |||||||||||||||
Other noninterest income | 379 | 159 | 155 | 945 | 672 | |||||||||||||||
Total noninterest income | 3,357 | 1,729 | 1,502 | 9,296 | 5,342 | |||||||||||||||
NONINTEREST EXPENSE | ||||||||||||||||||||
Salaries and employee benefits | 9,807 | 4,859 | 4,942 | 24,244 | 18,608 | |||||||||||||||
Occupancy | 907 | 419 | 420 | 2,170 | 1,721 | |||||||||||||||
Equipment and software | 608 | 243 | 235 | 1,295 | 921 | |||||||||||||||
Professional services | 872 | 208 | 299 | 1,485 | 1,055 | |||||||||||||||
Postage, printing and supplies | 115 | 21 | 25 | 178 | 91 | |||||||||||||||
Communications and data processing | 555 | 313 | 336 | 1,541 | 1,253 | |||||||||||||||
Marketing and business development | 197 | 90 | 77 | 410 | 323 | |||||||||||||||
FDIC premiums | 341 | 161 | 197 | 857 | 643 | |||||||||||||||
Merger and conversion costs | 6,314 | 718 | — | 8,296 | — | |||||||||||||||
Other noninterest expense | 2,519 | 639 | 644 | 4,453 | 1,959 | |||||||||||||||
Total noninterest expense | 22,235 | 7,671 | 7,175 | 44,929 | 26,574 | |||||||||||||||
(LOSS) INCOME BEFORE PROVISION FOR INCOME TAXES | (10,861 | ) | 3,689 | 3,295 | 68 | 11,373 | ||||||||||||||
Provision for income taxes | (3,195 | ) | 1,463 | 1,144 | 892 | 3,857 | ||||||||||||||
(LOSS) NET INCOME | $ | (7,666 | ) | $ | 2,226 | $ | 2,151 | $ | (824 | ) | $ | 7,516 | ||||||||
Net (loss) income per common share‑basic | $ | (0.37 | ) | $ | 0.16 | $ | 0.16 | $ | (0.05 | ) | $ | 0.56 | ||||||||
Net (loss) income per common share‑diluted | $ | (0.37 | ) | $ | 0.16 | $ | 0.16 | $ | (0.05 | ) | $ | 0.55 | ||||||||
ATLANTIC CAPITAL BANCSHARES, INC. | ||||||||||||||||||||||
Average Balance Sheets and Net Interest Margin Analysis | ||||||||||||||||||||||
Selected Financial Information | ||||||||||||||||||||||
Three months ended December 31, | ||||||||||||||||||||||
2015 | 2014 | |||||||||||||||||||||
(dollars in thousands) | Average Balance | Interest Income/Expense | Yield/Rate | Average Balance | Interest Income/Expense | Yield/Rate | ||||||||||||||||
Assets | ||||||||||||||||||||||
Deposits in other banks | $ | 117,646 | $ | 167 | 0.56 | % | $ | 59,538 | $ | 53 | 0.35 | % | ||||||||||
Other short-term investments | 34,700 | 114 | 1.30 | % | 37,235 | 81 | 0.86 | % | ||||||||||||||
Investment securities: | ||||||||||||||||||||||
Taxable investment securities | 245,475 | 1,164 | 1.88 | % | 129,412 | 695 | 2.13 | % | ||||||||||||||
Non-taxable investment securities | 9,837 | 60 | 2.42 | % | 2,357 | 20 | 3.36 | % | ||||||||||||||
Total investment securities | 255,312 | 1,224 | 1.90 | % | 131,769 | 715 | 2.15 | % | ||||||||||||||
Total loans | 1,612,854 | 16,688 | 4.11 | % | 1,012,367 | 8,978 | 3.52 | % | ||||||||||||||
FHLB stock | 3,583 | 47 | 5.20 | % | 3,907 | 51 | 5.05 | % | ||||||||||||||
Total interest-earning assets | 2,024,095 | 18,240 | 3.58 | % | 1,244,816 | 9,878 | 3.15 | % | ||||||||||||||
Non-earning assets | 224,519 | 66,690 | ||||||||||||||||||||
Total assets | $ | 2,248,614 | $ | 1,311,506 | ||||||||||||||||||
Liabilities | ||||||||||||||||||||||
Interest bearing deposits: | ||||||||||||||||||||||
NOW, money market, and savings | 1,015,427 | 950 | 0.37 | % | 601,210 | 579 | 0.38 | % | ||||||||||||||
Time deposits | 184,257 | 165 | 0.36 | % | 16,258 | 17 | 0.41 | % | ||||||||||||||
Internet and brokered deposits | 199,748 | 301 | 0.60 | % | 161,268 | 160 | 0.39 | % | ||||||||||||||
Total interest-bearing deposits | 1,399,432 | 1,416 | 0.40 | % | 778,736 | 756 | 0.38 | % | ||||||||||||||
Total borrowings | 24,564 | 95 | 1.53 | % | 95,669 | 135 | 0.56 | % | ||||||||||||||
Total long-term debt | 49,189 | 841 | 6.78 | % | — | — | — | % | ||||||||||||||
Total interest-bearing liabilities | 1,473,185 | 2,352 | 0.63 | % | 874,405 | 891 | 0.40 | % | ||||||||||||||
Demand deposits | 486,860 | 289,096 | ||||||||||||||||||||
Other liabilities | 41,727 | 8,784 | ||||||||||||||||||||
Stockholders' equity | 246,842 | 139,221 | ||||||||||||||||||||
Total liabilities and stockholders' equity | $ | 2,248,614 | $ | 1,311,506 | ||||||||||||||||||
Net interest spread | 2.94 | % | 2.74 | % | ||||||||||||||||||
Net interest income and net interest margin(1) | $ | 15,888 | 3.11 | % | $ | 8,987 | 2.86 | % | ||||||||||||||
(1) 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 | ||||||||||||||||||||||
Twelve months ended December 31, | ||||||||||||||||||||||
2015 | 2014 | |||||||||||||||||||||
(dollars in thousands) | Average Balance | Interest Income/Expense | Yield/Rate | Average Balance | Interest Income/Expense | Yield/Rate | ||||||||||||||||
Assets | ||||||||||||||||||||||
Deposits in other banks | $ | 63,785 | $ | 251 | 0.39 | % | $ | 56,328 | $ | 214 | 0.38 | % | ||||||||||
Other short-term investments | 50,322 | 664 | 1.32 | % | 36,828 | 311 | 0.84 | % | ||||||||||||||
Investment securities: | ||||||||||||||||||||||
Taxable investment securities | 161,597 | 3,179 | 1.97 | % | 141,627 | 3,035 | 2.14 | % | ||||||||||||||
Non-taxable investment securities | 4,199 | 122 | 2.91 | % | 2,100 | 74 | 3.54 | % | ||||||||||||||
Total investment securities | 165,796 | 3,301 | 1.99 | % | 143,727 | 3,109 | 2.16 | % | ||||||||||||||
Total loans | 1,192,103 | 44,562 | 3.74 | % | 918,959 | 32,762 | 3.57 | % | ||||||||||||||
FHLB stock | 4,338 | 189 | 4.36 | % | 3,917 | 146 | 3.74 | % | ||||||||||||||
Total interest-earning assets | 1,476,344 | 48,967 | 3.32 | % | 1,159,759 | 36,542 | 3.15 | % | ||||||||||||||
Non-earning assets | 105,343 | 67,471 | ||||||||||||||||||||
Total assets | $ | 1,581,687 | $ | 1,227,230 | ||||||||||||||||||
Liabilities | ||||||||||||||||||||||
Interest bearing deposits: | ||||||||||||||||||||||
NOW, money market, and savings | 745,777 | 2,839 | 0.38 | % | 605,014 | 2,376 | 0.39 | % | ||||||||||||||
Time deposits | 58,133 | 211 | 0.36 | % | 16,322 | 69 | 0.42 | % | ||||||||||||||
Internet and brokered deposits | 140,416 | 628 | 0.45 | % | 107,575 | 444 | 0.41 | % | ||||||||||||||
Total interest-bearing deposits | 944,326 | 3,678 | 0.39 | % | 728,911 | 2,889 | 0.40 | % | ||||||||||||||
Total borrowings | 84,196 | 447 | 0.53 | % | 100,326 | 560 | 0.56 | % | ||||||||||||||
Total long-term debt | 12,805 | 858 | 6.70 | % | — | — | — | % | ||||||||||||||
Total interest-bearing liabilities | 1,041,327 | 4,983 | 0.48 | % | 829,237 | 3,449 | 0.42 | % | ||||||||||||||
Demand deposits | 352,437 | 254,861 | ||||||||||||||||||||
Other liabilities | 17,248 | 7,445 | ||||||||||||||||||||
Stockholders' equity | 170,675 | 135,687 | ||||||||||||||||||||
Total liabilities and stockholders' equity | $ | 1,581,687 | $ | 1,227,230 | ||||||||||||||||||
Net interest spread | 2.84 | % | 2.73 | % | ||||||||||||||||||
Net interest income and net interest margin(1) | $ | 43,984 | 2.98 | % | $ | 33,093 | 2.85 | % | ||||||||||||||
(1) 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 | ||||||||||||||||||||||||||||
2015 | 2014 | Linked Quarter Change | Year Over Year Change | |||||||||||||||||||||||||
(dollars in thousands) | Fourth Quarter | Third Quarter | Second Quarter | First Quarter | Fourth Quarter | |||||||||||||||||||||||
Atlantic Capital Bancshares, Inc. Loans | ||||||||||||||||||||||||||||
Loans held for sale | $ | 59,995 | $ | — | $ | 1,768 | $ | 581 | $ | — | $ | 59,995 | $ | 59,995 | ||||||||||||||
Branch loans held for sale | 35,470 | — | — | — | — | 35,470 | 35,470 | |||||||||||||||||||||
Total loans held for sale | 95,465 | — | 1,768 | 581 | — | 95,465 | 95,465 | |||||||||||||||||||||
Loans held for investment | ||||||||||||||||||||||||||||
Commercial loans: | ||||||||||||||||||||||||||||
Commercial and industrial | $ | 467,083 | $ | 366,830 | $ | 368,857 | $ | 375,619 | $ | 365,447 | $ | 100,253 | $ | 101,636 | ||||||||||||||
Commercial real estate | 846,413 | 440,226 | 437,000 | 440,100 | 439,071 | 406,187 | 407,342 | |||||||||||||||||||||
Construction and land | 166,358 | 106,934 | 90,039 | 99,146 | 82,567 | 59,424 | 83,791 | |||||||||||||||||||||
Mortgage warehouse loans | 84,350 | 89,816 | 113,285 | 130,112 | 116,939 | (5,466 | ) | (32,589 | ) | |||||||||||||||||||
Total commercial loans | 1,564,204 | 1,003,806 | 1,009,181 | 1,044,977 | 1,004,024 | 560,398 | 560,180 | |||||||||||||||||||||
Residential: | ||||||||||||||||||||||||||||
Residential mortgages | 110,381 | 726 | 728 | 737 | 1,320 | 109,655 | 109,061 | |||||||||||||||||||||
Home equity | 80,738 | 27,186 | 32,005 | 26,829 | 28,464 | 53,552 | 52,274 | |||||||||||||||||||||
Total residential loans | 191,119 | 27,912 | 32,733 | 27,566 | 29,784 | 163,207 | 161,335 | |||||||||||||||||||||
Consumer | 30,451 | 18,741 | 18,462 | 15,608 | 9,290 | 11,710 | 21,161 | |||||||||||||||||||||
Other | 6,901 | — | — | — | — | 6,901 | 6,901 | |||||||||||||||||||||
1,792,675 | 1,050,459 | 1,060,376 | 1,088,151 | 1,043,098 | 742,216 | 749,577 | ||||||||||||||||||||||
Less net deferred fees and other unearned income | $ | (2,006 | ) | $ | (4,022 | ) | $ | (3,688 | ) | $ | (3,482 | ) | $ | (3,385 | ) | $ | 2,015 | $ | 1,378 | |||||||||
Total loans held for investment | $ | 1,790,669 | $ | 1,046,437 | $ | 1,056,688 | $ | 1,084,669 | $ | 1,039,713 | $ | 744,232 | $ | 750,956 | ||||||||||||||
Legacy Atlantic Capital Loans | ||||||||||||||||||||||||||||
Loans held for sale | $ | — | $ | — | $ | 1,768 | $ | 581 | $ | — | $ | — | $ | — | ||||||||||||||
Loans held for investment | ||||||||||||||||||||||||||||
Commercial loans: | ||||||||||||||||||||||||||||
Commercial and industrial | $ | 365,281 | $ | 366,830 | $ | 368,857 | $ | 375,619 | $ | 365,447 | $ | (1,549 | ) | $ | (166 | ) | ||||||||||||
Commercial real estate | 436,866 | 440,226 | 437,000 | 440,100 | 439,071 | (3,360 | ) | (2,205 | ) | |||||||||||||||||||
Construction and land | 118,766 | 106,934 | 90,039 | 99,146 | 82,567 | 11,832 | 36,199 | |||||||||||||||||||||
Mortgage warehouse loans | 84,350 | 89,816 | 113,285 | 130,112 | 116,939 | (5,466 | ) | (32,589 | ) | |||||||||||||||||||
Total commercial loans | 1,005,263 | 1,003,806 | 1,009,181 | 1,044,977 | 1,004,024 | 1,457 | 1,239 | |||||||||||||||||||||
Residential: | ||||||||||||||||||||||||||||
Residential mortgages | 724 | 726 | 728 | 737 | 1,320 | (2 | ) | (596 | ) | |||||||||||||||||||
Home equity | 26,034 | 27,186 | 32,005 | 26,829 | 28,464 | (1,152 | ) | (2,430 | ) | |||||||||||||||||||
Total residential loans | 26,758 | 27,912 | 32,733 | 27,566 | 29,784 | (1,154 | ) | (3,026 | ) | |||||||||||||||||||
Consumer | 20,028 | 18,741 | 18,462 | 15,608 | 9,290 | 1,287 | 10,738 | |||||||||||||||||||||
1,052,049 | 1,050,459 | 1,060,376 | 1,088,151 | 1,043,098 | 1,590 | 8,951 | ||||||||||||||||||||||
Less net deferred fees and other unearned income | (4,472 | ) | (4,022 | ) | (3,688 | ) | (3,482 | ) | (3,385 | ) | (450 | ) | (1,087 | ) | ||||||||||||||
Total loans held for investment | $ | 1,047,577 | $ | 1,046,437 | $ | 1,056,688 | $ | 1,084,669 | $ | 1,039,713 | $ | 1,140 | $ | 7,864 | ||||||||||||||
ATLANTIC CAPITAL BANCSHARES, INC. | ||||||||||||||||||||||||||||
Allowance for Loan Losses Activity and Credit Quality | ||||||||||||||||||||||||||||
2015 | 2014 | |||||||||||||||||||||||||||
Non-PCI Loans | PCI Loans | Total | ||||||||||||||||||||||||||
(dollars in thousands) | Fourth Quarter | Fourth Quarter | Fourth Quarter | Third Quarter | Second Quarter | First Quarter | Fourth Quarter | |||||||||||||||||||||
Loans held for investment | $ | 1,768,186 | $ | 22,483 | $ | 1,790,669 | $ | 1,046,437 | $ | 1,056,688 | $ | 1,084,669 | $ | 1,039,713 | ||||||||||||||
Balance at beginning of period | $ | 11,862 | $ | — | $ | 11,862 | $ | 11,985 | $ | 11,800 | $ | 11,421 | $ | 11,301 | ||||||||||||||
Provision for loan losses | 7,871 | — | 7,871 | (137 | ) | 185 | 364 | 19 | ||||||||||||||||||||
Loans charged-off: | ||||||||||||||||||||||||||||
Commercial real estate | (500 | ) | — | (500 | ) | — | — | — | — | |||||||||||||||||||
Consumer | (128 | ) | — | (128 | ) | — | — | — | — | |||||||||||||||||||
Total loans charged-off | (628 | ) | — | (628 | ) | — | — | — | — | |||||||||||||||||||
Recoveries on loans previously charged‑off: | ||||||||||||||||||||||||||||
Construction and land | — | — | — | 14 | — | 15 | 37 | |||||||||||||||||||||
Commercial real estate | — | — | — | — | — | — | 64 | |||||||||||||||||||||
Consumer | 48 | — | 48 | — | — | — | — | |||||||||||||||||||||
Balance at period end | $ | 19,153 | $ | — | $ | 19,153 | $ | 11,862 | $ | 11,985 | $ | 11,800 | $ | 11,421 | ||||||||||||||
Allowance for loan losses to loans | 1.07 | % | 1.13 | % | 1.13 | % | 1.09 | % | 1.10 | % | ||||||||||||||||||
Net charge-offs to average loans (1) | 0.15 | (0.01 | ) | — | (0.01 | ) | (0.04 | ) | ||||||||||||||||||||
Non-performing loans | $ | 8,527 | $ | 1,422 | $ | 9,949 | $ | — | $ | — | $ | — | $ | — | ||||||||||||||
Foreclosed Properties (OREO) | 1,982 | — | 1,982 | 27 | 27 | 1,531 | 1,531 | |||||||||||||||||||||
Total nonperforming assets | $ | 10,509 | $ | 1,422 | $ | 11,931 | $ | 27 | $ | 27 | $ | 1,531 | $ | 1,531 | ||||||||||||||
Nonperforming loans as a percentage of total loans | 0.47 | % | — | % | 0.54 | % | — | % | — | % | — | % | — | % | ||||||||||||||
Nonperforming assets as a percentage of total assets | 0.40 | — | 0.45 | — | — | 0.11 | 0.12 | |||||||||||||||||||||
(1) Annualized | ||||||||||||||||||||||||||||
ATLANTIC CAPITAL BANCSHARES, INC. | ||||||||||||||||||||||||||||
Period End Deposits | ||||||||||||||||||||||||||||
2015 | 2014 | Linked Quarter Change | Year Over Year Change | |||||||||||||||||||||||||
(dollars in thousands) | Fourth Quarter | Third Quarter | Second Quarter | First Quarter | Fourth Quarter | |||||||||||||||||||||||
Atlantic Capital Bancshares, Inc. Deposits | ||||||||||||||||||||||||||||
DDA | $ | 544,561 | $ | 328,065 | $ | 327,775 | $ | 300,439 | $ | 320,346 | $ | 216,496 | $ | 224,215 | ||||||||||||||
NOW | 235,682 | 135,350 | 115,614 | 106,680 | 91,709 | 100,332 | 143,973 | |||||||||||||||||||||
Savings | 28,922 | 321 | 437 | 403 | 304 | 28,601 | 28,618 | |||||||||||||||||||||
Money Market | 875,441 | 550,879 | 546,408 | 585,971 | 572,658 | 324,562 | 302,783 | |||||||||||||||||||||
Time | 183,206 | 15,434 | 16,597 | 16,069 | 16,129 | 167,772 | 167,077 | |||||||||||||||||||||
Brokered | 183,810 | 98,559 | 96,230 | 139,049 | 104,699 | 85,251 | 79,111 | |||||||||||||||||||||
Total Deposits | $ | 2,051,622 | $ | 1,128,608 | $ | 1,103,061 | $ | 1,148,611 | $ | 1,105,845 | $ | 923,014 | $ | 945,777 | ||||||||||||||
Legacy Atlantic Capital Deposits | ||||||||||||||||||||||||||||
DDA | $ | 399,615 | $ | 328,065 | $ | 327,775 | $ | 300,439 | $ | 320,346 | $ | 71,550 | $ | 79,269 | ||||||||||||||
NOW | 169,041 | 135,350 | 115,614 | 106,680 | 91,709 | 33,691 | 77,332 | |||||||||||||||||||||
Savings | 417 | 321 | 437 | 403 | 304 | 96 | 113 | |||||||||||||||||||||
Money Market | 663,996 | 550,879 | 546,408 | 585,971 | 572,658 | 113,117 | 91,338 | |||||||||||||||||||||
Time | 15,384 | 15,434 | 16,597 | 16,069 | 16,129 | (50 | ) | (745 | ) | |||||||||||||||||||
Brokered | 100,361 | 98,559 | 96,230 | 139,049 | 104,699 | 1,802 | (4,338 | ) | ||||||||||||||||||||
Total Deposits | $ | 1,348,814 | $ | 1,128,608 | $ | 1,103,061 | $ | 1,148,611 | $ | 1,105,845 | $ | 220,206 | $ | 242,969 | ||||||||||||||
ATLANTIC CAPITAL BANCSHARES, INC. | |||||||||||||||||||||||||||||
Non-GAAP Performance Measures Reconciliation | |||||||||||||||||||||||||||||
Selected Financial Information | |||||||||||||||||||||||||||||
(in thousands, except per share data) | 2015 | 2014 | For the year ended December 31, | ||||||||||||||||||||||||||
Fourth Quarter | Third Quarter | Second Quarter | First Quarter | Fourth Quarter | 2015 | 2014 | |||||||||||||||||||||||
Operating provision for loan losses reconciliation | |||||||||||||||||||||||||||||
Operating provision for loan losses | $ | 1,107 | $ | (137 | ) | $ | 185 | $ | 364 | $ | 19 | $ | 1,519 | $ | 488 | ||||||||||||||
Provision for acquired non PCI FSG loans | 6,764 | — | — | — | — | 6,764 | — | ||||||||||||||||||||||
Provision for loan losses - GAAP | $ | 7,871 | $ | (137 | ) | $ | 185 | $ | 364 | $ | 19 | $ | 8,283 | $ | 488 | ||||||||||||||
Operating noninterest expense reconciliation | |||||||||||||||||||||||||||||
Operating noninterest expense | $ | 15,921 | $ | 6,953 | $ | 7,065 | $ | 6,694 | $ | 7,175 | $ | 36,633 | $ | 26,574 | |||||||||||||||
Merger-related charges | 6,314 | 718 | 756 | 508 | — | 8,296 | — | ||||||||||||||||||||||
Noninterest expense - GAAP | $ | 22,235 | $ | 7,671 | $ | 7,821 | $ | 7,202 | $ | 7,175 | $ | 44,929 | $ | 26,574 | |||||||||||||||
Operating income before income taxes reconciliation | |||||||||||||||||||||||||||||
Operating income before income taxes | $ | 2,217 | $ | 4,407 | $ | 5,348 | $ | 3,156 | $ | 3,295 | $ | 15,128 | $ | 11,373 | |||||||||||||||
Merger-related charges | (6,314 | ) | (718 | ) | (756 | ) | (508 | ) | — | (8,296 | ) | — | |||||||||||||||||
Provision for acquired non PCI FSG loans | (6,764 | ) | — | — | — | — | (6,764 | ) | — | ||||||||||||||||||||
Income (loss) before income taxes - GAAP | $ | (10,861 | ) | $ | 3,689 | $ | 4,592 | $ | 2,648 | $ | 3,295 | $ | 68 | $ | 11,373 | ||||||||||||||
Income tax reconciliation | |||||||||||||||||||||||||||||
Operating income tax expense | 583 | 1,738 | 1,980 | 1,129 | 1,144 | 5,435 | 3,857 | ||||||||||||||||||||||
Merger related charges, tax benefit | (1,167 | ) | (275 | ) | (290 | ) | (195 | ) | — | (1,932 | ) | — | |||||||||||||||||
Provision for acquired non PCI FSG loans, tax benefit | (2,611 | ) | — | — | — | — | (2,611 | ) | — | ||||||||||||||||||||
Income tax expense - GAAP | $ | (3,195 | ) | $ | 1,463 | $ | 1,690 | $ | 934 | $ | 1,144 | $ | 892 | $ | 3,857 | ||||||||||||||
Net income reconciliation | |||||||||||||||||||||||||||||
Operating net income | 1,634 | 2,669 | 3,368 | 2,027 | 2,151 | 9,693 | $ | 7,516 | |||||||||||||||||||||
Merger related charges, net of income tax | (5,147 | ) | (443 | ) | (466 | ) | (313 | ) | — | (6,364 | ) | — | |||||||||||||||||
Provision for acquired non PCI FSG loans, net of income tax | (4,153 | ) | — | — | — | — | (4,153 | ) | — | ||||||||||||||||||||
Net income - GAAP | $ | (7,666 | ) | $ | 2,226 | $ | 2,902 | $ | 1,714 | $ | 2,151 | $ | (824 | ) | $ | 7,516 | |||||||||||||
Diluted earnings per share reconciliation | |||||||||||||||||||||||||||||
Diluted earnings per share - operating | $ | 0.08 | $ | 0.19 | $ | 0.24 | $ | 0.15 | $ | 0.16 | $ | 0.62 | $ | 0.55 | |||||||||||||||
Merger related charges | (0.45 | ) | (0.03 | ) | (0.03 | ) | (0.03 | ) | — | (0.67 | ) | — | |||||||||||||||||
Diluted earnings per share - GAAP | $ | (0.37 | ) | $ | 0.16 | $ | 0.21 | $ | 0.12 | $ | 0.16 | $ | (0.05 | ) | $ | 0.55 | |||||||||||||
Book value per common share reconciliation | |||||||||||||||||||||||||||||
Total shareholders’ equity | $ | 289,982 | $ | 149,809 | $ | 146,485 | $ | 144,159 | $ | 140,929 | $ | 289,982 | $ | 140,929 | |||||||||||||||
Intangible assets | (31,253 | ) | (1,259 | ) | (1,055 | ) | (848 | ) | (782 | ) | (31,253 | ) | (782 | ) | |||||||||||||||
Total tangible common equity | $ | 258,729 | $ | 148,550 | $ | 145,430 | $ | 143,311 | $ | 140,147 | $ | 258,729 | $ | 140,147 | |||||||||||||||
Common shares outstanding | 24,425,546 | 13,562,125 | 13,562,125 | 13,508,480 | 13,453,820 | 24,425,546 | 13,453,820 | ||||||||||||||||||||||
Book value per common share - GAAP | 11.87 | 11.05 | 10.8 | 10.67 | 10.48 | 11.87 | 10.48 | ||||||||||||||||||||||
Tangible book value | 10.59 | 10.95 | 10.72 | 10.61 | 10.41 | 10.59 | 10.41 | ||||||||||||||||||||||
Return on average equity reconciliation | |||||||||||||||||||||||||||||
Net income - GAAP | $ | (7,666 | ) | $ | 2,226 | $ | 2,902 | $ | 1,714 | $ | 2,151 | $ | (824 | ) | $ | 7,516 | |||||||||||||
Merger related charges, net of income tax | 5,147 | 443 | 466 | 313 | — | 6,364 | — | ||||||||||||||||||||||
Provision for acquired FSG loans, net of income tax | 4,153 | — | — | — | — | 4,153 | — | ||||||||||||||||||||||
Operating net income | $ | 1,634 | $ | 2,669 | $ | 3,368 | $ | 2,027 | $ | 2,151 | $ | 9,693 | $ | 7,516 | |||||||||||||||
Average shareholders' equity | 246,842 | 146,430 | 145,210 | 141,930 | 139,220 | 170,675 | 135,687 | ||||||||||||||||||||||
Return on average equity - GAAP | (12.42 | ) | % | 6.08 | % | 7.99 | % | 4.83 | % | 6.18 | % | (0.48 | ) | % | 5.54 | % | |||||||||||||
Return on average equity - operating | 2.65 | 7.29 | 9.28 | 5.71 | 6.18 | 5.68 | 5.54 | ||||||||||||||||||||||
Return on average assets reconciliation | |||||||||||||||||||||||||||||
Net income - GAAP | $ | (7,666 | ) | $ | 2,226 | $ | 2,902 | $ | 1,714 | $ | 2,151 | $ | (824 | ) | $ | 7,516 | |||||||||||||
Merger related charges, net of income tax benefit | 5,147 | 443 | 466 | 313 | — | 6,364 | — | ||||||||||||||||||||||
Provision for acquired FSG loans | 4,153 | — | — | — | — | 4,153 | — | ||||||||||||||||||||||
Operating net income | $ | 1,634 | $ | 2,669 | $ | 3,368 | $ | 2,027 | $ | 2,151 | $ | 9,693 | $ | 7,516 | |||||||||||||||
Average assets | 2,248,614 | 1,349,997 | 1,379,150 | 1,346,437 | 1,311,506 | 1,581,687 | 1,227,230 | ||||||||||||||||||||||
Return on average assets - GAAP | (1.36 | ) | % | 0.66 | % | 0.84 | % | 0.51 | % | 0.66 | % | (0.05 | ) | % | 0.61 | % | |||||||||||||
Return on average assets - operating | 0.29 | 0.79 | 0.98 | 0.60 | 0.66 | 0.61 | 0.61 | ||||||||||||||||||||||
Efficiency ratio reconciliation | |||||||||||||||||||||||||||||
Operating noninterest expense | $ | 15,921 | $ | 6,953 | $ | 7,065 | $ | 6,694 | $ | 7,175 | $ | 36,633 | $ | 26,574 | |||||||||||||||
Merger-related charges | 6,314 | 718 | 756 | 508 | — | 8,296 | — | ||||||||||||||||||||||
Noninterest expense - GAAP | $ | 22,235 | $ | 7,671 | $ | 7,821 | $ | 7,202 | $ | 7,175 | $ | 44,929 | $ | 26,574 | |||||||||||||||
Net interest income | 15,888 | 9,494 | 9,570 | 9,032 | 8,987 | 43,984 | 33,093 | ||||||||||||||||||||||
Noninterest income | 3,357 | 1,729 | 3,028 | 1,182 | 1,502 | 9,296 | 5,342 | ||||||||||||||||||||||
Efficiency ratio - GAAP | 115.54 | % | 68.35 | % | 61.95 | % | 69.66 | % | 68.89 | % | 84.33 | % | 69.14 | % | |||||||||||||||
Efficiency ratio - operating | 82.73 | 61.95 | 56.08 | 65.54 | 68.89 | 68.76 | 69.14 | ||||||||||||||||||||||
Tangible equity to tangible assets reconciliation | |||||||||||||||||||||||||||||
Total shareholders’ equity | $ | 289,982 | $ | 149,809 | $ | 146,485 | $ | 144,159 | $ | 140,929 | $ | 289,982 | $ | 140,929 | |||||||||||||||
Intangible assets | (31,253 | ) | (1,259 | ) | (1,055 | ) | (848 | ) | (782 | ) | (31,253 | ) | (782 | ) | |||||||||||||||
Total tangible common equity | $ | 258,729 | $ | 148,550 | $ | 145,430 | $ | 143,311 | $ | 140,147 | $ | 258,729 | $ | 140,147 | |||||||||||||||
Total assets | $ | 2,636,178 | $ | 1,381,698 | $ | 1,373,267 | $ | 1,380,768 | $ | 1,314,859 | $ | 2,636,178 | $ | 1,314,859 | |||||||||||||||
Intangible assets | (31,253 | ) | (1,259 | ) | (1,055 | ) | (848 | ) | (782 | ) | (31,253 | ) | (782 | ) | |||||||||||||||
Total tangible assets | $ | 2,604,925 | $ | 1,380,439 | $ | 1,372,212 | $ | 1,379,920 | $ | 1,314,077 | $ | 2,604,925 | $ | 1,314,077 | |||||||||||||||
Tangible equity to tangible assets | 9.93 | % | 10.76 | % | 10.6 | % | 10.39 | % | 10.67 | % | 9.93 | % | 10.67 | % | |||||||||||||||