ATLANTA--(BUSINESS WIRE)--Atlantic Capital Bancshares, Inc. (NASDAQ: ACBI) announced results of the quarter ended September 30, 2016.
Third Quarter Highlights
- Net income of $3.7 million, or $0.15 per diluted share; operating net income of $4.1 million, or $0.16 per diluted share.
- Total loans held for investment increased $66 million, or 3.4%, to $2.01 billion from June 30, 2016.
- Total deposits increased $31 million, or 1.4%, to $2.19 billion from June 30, 2016.
- Noninterest expense decreased $1.6 million, or 8.7%, to $17.3 million, compared to the second quarter of 2016. Operating noninterest expense decreased $0.7 million, or 4.1%, to $16.7 million compared the second quarter of 2016.
- Nonperforming assets totaled 0.09% of total assets as of September 30, 2016.
- Net charge-offs were 0.06% of average loans for the third quarter of 2016 and 0.13% for the nine months ended September 30, 2016.
“Atlantic Capital’s third quarter results reflect strong growth and profit improvement in our metropolitan Atlanta and specialized lending and corporate services businesses while our work to redirect and restructure our Tennessee based businesses continued. We also announced our intent to open a corporate banking office in Charlotte, North Carolina as part of our effort to build capacity for growth in revenue and improvement in profitability,” explained Douglas Williams, Chief Executive Officer.
Results of Operations
For the third quarter of 2016, Atlantic Capital recorded net income of $3.7 million, or $0.15 per diluted share, compared to net income of $5.1 million, or $0.20 per diluted share, in the second quarter of 2016. Operating net income totaled $4.1 million, or $0.16 per diluted share, for the third quarter of 2016, compared to $3.7 million, or $0.15 per diluted share, in the second quarter of 2016. Operating net income excludes merger related expenses and the net gain on sale of Eastern Tennessee branches.
Taxable equivalent net interest income improved to $19.5 million in the third quarter of 2016 from $19.3 million in the second quarter of 2016. Net accretion income on acquired loans totaled $576,000 and premium amortization on acquired time deposits totaled $170,000 in the third quarter of 2016 compared to $525,000 and $234,000, respectively, in the second quarter of 2016.
Taxable equivalent net interest margin was unchanged at 3.12% in the third quarter of 2016 from the second quarter of 2016. The accretion of acquired loan discount and amortization of time deposit premium contributed 12 basis points in the second and third quarters of 2016. The net interest margin excluding these purchase accounting adjustments was unchanged at 3.00% in the third quarter of 2016 from the second quarter of 2016.
The provision for loan losses was $463,000 in the third quarter of 2016 compared to $777,000 in the second quarter of 2016.
Total noninterest income totaled $4.0 million in the third quarter of 2016, a decrease of $4.9 million compared to the second quarter of 2016. The second quarter included a $3.6 million net gain on sale of branches. Excluding the gain on sale of branches, noninterest income decreased $1 million to $4.0 million from $5.0 million in the second quarter of 2016. This decrease was primarily due to lower gains on the sale of SBA and TriNet loans. The SBA division contributed $1.0 million in income in the third quarter of 2016 compared to $1.2 million in the second quarter of 2016. The TriNet lending division did not sell any loans in the third quarter compared to $761,000 of income on sales in the second quarter of 2016.
During the third quarter, Atlantic Capital made the decision to close the TriNet Lending division. Sales of additional TriNet loans are expected in the fourth quarter of 2016, resulting in additional fee income and a reduction in loan balances. A portion of the cost savings from closure of the TriNet division will be reinvested in our SBA lending division.
On December 17, 2015, Atlantic Capital announced that it had entered into agreements for the sale of seven legacy FSGBank branches in Eastern Tennessee. The sale of four of the branches closed on April 1, 2016 and the sale of the remaining three branches closed on May 13, 2016. The branch sales resulted in a net gain of $3.6 million in the second quarter of 2016 and included the sale of approximately $190 million in deposits, $35 million in loans and $9 million in other assets. The net gain included the write-off of $1.6 million in core deposit intangibles and $305,000 in expenses related to the sales.
Noninterest expense totaled $17.3 million in the third quarter of 2016, a decrease of $1.6 million compared to $18.9 million in the second quarter of 2016. Merger related expenses accounted for $631,000 of the decrease and totaled $579,000 in the third quarter of 2016, compared to $1.2 million in the second quarter. Operating noninterest expense, which excludes merger related expenses and the other noninterest expenses associated with the branch sales, decreased by $711,000 to $16.7 million. Salaries and benefits decreased $361,000 due to lower incentive expense and the remaining benefit from the second quarter branch sales. Professional fees decreased $318,000 in the third quarter as a result of lower legal fees. Amortization of intangibles decreased $148,000 largely from the decrease in core deposit intangibles from the second quarter branch sale.
Loans held for investment were $2.01 billion at September 30, 2016, an increase of $66 million, or 3.4%, from June 30, 2016. The third quarter included the net transfer of $17 million in TriNet loans from loans held for investment to loans held for sale. Excluding the transfer of TriNet loans, loans held for investment increased $83 million from June 30, 2016.
At September 30, 2016, the allowance for loan losses was $18.5 million, or 0.92% of loans held for investment, compared to $18.4 million, or 0.95% of loans held for investment as June 30, 2016. Annualized net charge-offs in the third quarter of 2016 totaled 0.06% of average loans and 0.13% for the nine months ended September 30, 2016. Nonperforming assets totaled $2.5 million, or 0.09% of total assets, as of September 30, 2016, compared to $1.9 million, or 0.07% of total assets, as of June 30, 2016.
Total deposits as of September 30, 2016 were $2.19 billion, an increase of $31 million, or 1.4%, from June 30, 2016. Brokered deposits were $194 million at September 30, 2016, a decrease of $18 million from June 30, 2016. Deposits associated with our payments business were $212 million at September 30, 2016, a decrease of $83 million in the third quarter, due to the normal volatility.
Earnings Conference Call
The Company will host a conference call at 10:00 a.m. EST on Friday, October 28, 2016, to discuss the financial results for the quarter ended September 30, 2016. 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) interest income - taxable equivalent; (ii) net interest income - taxable equivalent; (iii) operating provision for loan losses; (iv) operating noninterest income; (v) operating noninterest expense; (vi) operating income before income taxes; (vii) operating income tax expense; (viii) operating net income; (ix) diluted earnings per share - operating; (x) tangible common equity; (xi) tangible book value; (xii) return on average assets - operating; (xiii) return on average equity - operating; (xiv) efficiency ratio; (xv) total tangible assets; and (xvi) deposits excluding deposits to be assumed in branch sales, 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, provision for loan losses for the acquired FSG portfolio, and the income tax effect of adjustments. 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. 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 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 “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in Atlantic Capital’s Annual Report on Form 10-K for the year ended December 31, 2015 and Quarterly Reports on Form 10-Q for the periods ended March 31, 2016 and June 30, 2016. 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., with assets of $2.8 billion, is a publicly-traded bank holding company headquartered in Atlanta, Georgia with corporate offices in Chattanooga and Knoxville, Tennessee. Atlantic Capital Bank, (the “Bank”) operates under the “Atlantic Capital” brand in Atlanta and “FSGBank” brand in east Tennessee and northwest Georgia. The Bank provides lending, treasury management and capital markets services to small and mid-sized businesses and mortgage, trust and other banking services to private and individual clients.
ATLANTIC CAPITAL BANCSHARES, INC. | ||||||||||||||||||||||||||||||
Selected Financial Information | ||||||||||||||||||||||||||||||
2016 | 2015 |
For the nine months ended |
||||||||||||||||||||||||||||
(in thousands, except share and per share data; taxable equivalent) |
Third |
Second |
First |
Fourth |
Third |
2016 | 2015 | |||||||||||||||||||||||
INCOME SUMMARY | ||||||||||||||||||||||||||||||
Interest income (1) | $ | 22,428 | $ | 22,190 | $ | 21,553 | $ | 18,270 | $ | 10,345 | $ | 66,171 | $ | 30,760 | ||||||||||||||||
Interest expense | 2,941 | 2,907 | 2,632 | 2,292 | 840 | 8,480 | 2,631 | |||||||||||||||||||||||
Net interest income | 19,487 | 19,283 | 18,921 | 15,978 | 9,505 | 57,691 | 28,129 | |||||||||||||||||||||||
Operating provision for loan losses (2) | 463 | 777 | 368 | 859 | (137 | ) | 1,608 | 412 | ||||||||||||||||||||||
Net interest income after provision for loan losses | 19,024 | 18,506 | 18,553 | 15,119 | 9,642 | 56,083 | 27,717 | |||||||||||||||||||||||
Operating noninterest income | 4,002 | 4,995 | 4,420 | 3,460 | 1,729 | 13,417 | 5,939 | |||||||||||||||||||||||
Operating noninterest expense (3) | 16,717 | 17,428 | 17,517 | 16,067 | 6,953 | 51,662 | 20,712 | |||||||||||||||||||||||
Operating income before income taxes | 6,309 | 6,073 | 5,456 | 2,512 | 4,418 | 17,838 | 12,944 | |||||||||||||||||||||||
Operating income tax expense | 2,245 | 2,381 | 2,065 | 2,117 | 1,749 | 6,691 | 4,880 | |||||||||||||||||||||||
Operating net income (2)(3) | 4,064 | 3,692 | 3,391 | 395 | 2,669 | 11,147 | 8,064 | |||||||||||||||||||||||
Provision for acquired non PCI FSG loans | — | — | — | 4,153 | — | — | — | |||||||||||||||||||||||
Merger related expenses, net of income tax | 356 | 743 | 460 | 4,403 | 443 | 1,559 | 1,222 | |||||||||||||||||||||||
Net gain on sale of branches, net of income tax | — | 2,198 | — | — | — | 2,198 | — | |||||||||||||||||||||||
Net income (loss) - GAAP | $ | 3,708 | $ | 5,147 | $ | 2,931 | $ | (8,161 | ) | $ | 2,226 | $ | 11,786 | $ | 6,842 | |||||||||||||||
PER SHARE DATA | ||||||||||||||||||||||||||||||
Diluted earnings (loss) per share - GAAP | $ | 0.15 | $ | 0.20 | $ | 0.12 | $ | (0.40 | ) | $ | 0.16 | $ | 0.47 | $ | 0.49 | |||||||||||||||
Diluted earnings per share - operating (2)(3) | 0.16 | 0.15 | 0.14 | 0.02 | 0.19 | 0.44 | 0.58 | |||||||||||||||||||||||
Book value per share | 12.36 | 12.29 | 11.99 | 11.79 | 11.05 | 12.36 | 11.05 | |||||||||||||||||||||||
Tangible book value per share (4) | 11.16 | 11.01 | 10.61 | 10.35 | 10.95 | 11.16 | 10.95 | |||||||||||||||||||||||
PERFORMANCE MEASURES | ||||||||||||||||||||||||||||||
Return on average equity - GAAP | 4.84 | % | 6.88 | % | 4.02 | % | (13.22 | ) | % | 6.08 | % | 5.25 | % | 6.30 | % | |||||||||||||||
Return on average equity - operating (2)(3) | 5.30 | 4.94 | 4.65 | 0.64 | 7.29 | 4.97 | 7.42 | |||||||||||||||||||||||
Return on average assets - GAAP | 0.55 | 0.76 | 0.45 | (1.45 | ) | 0.66 | 0.58 | 0.67 | ||||||||||||||||||||||
Return on average assets operating (2)(3) | 0.60 | 0.54 | 0.52 | 0.07 | 0.79 | 0.55 | 0.79 | |||||||||||||||||||||||
Taxable equivalent net interest margin | 3.12 | 3.12 | 3.26 | 3.13 | 2.93 | 3.11 | 2.91 | |||||||||||||||||||||||
Efficiency ratio | 71.57 | 72.00 | 75.22 | 82.79 | 61.95 | 72.92 | 60.86 | |||||||||||||||||||||||
CAPITAL | ||||||||||||||||||||||||||||||
Average equity to average assets | 11.28 | % | 11.01 | % | 11.13 | % | 10.98 | % | 10.85 | % | 11.06 | % | 10.85 | % | ||||||||||||||||
Tangible common equity to tangible assets | 10.19 | 9.81 | 9.69 | 9.71 | 10.76 | 10.19 | 10.76 | |||||||||||||||||||||||
Tier 1 capital ratio | 9.7 |
(6) |
9.9 | 9.5 | 9.8 | 11.0 | 9.7 |
(6) |
11.0 | |||||||||||||||||||||
Total risk based capital ratio | 12.5 |
(6) |
12.8 | 12.4 | 12.9 | 15.5 | 12.5 |
(6) |
15.5 | |||||||||||||||||||||
Number of common shares outstanding - basic | 24,950,099 | 24,750,163 | 24,569,823 | 24,425,546 | 13,562,125 | 24,950,099 | 13,562,125 | |||||||||||||||||||||||
Number of common shares outstanding - diluted | 25,342,883 | 25,267,803 | 25,077,520 | 25,059,823 | 13,904,395 | 25,342,883 | 13,904,395 | |||||||||||||||||||||||
ASSET QUALITY | ||||||||||||||||||||||||||||||
Allowance for loan losses to loans held for investment | 0.92 | % | 0.95 | % | 0.93 | % | 1.06 | % | 1.13 | % | 0.92 | % | 1.13 | % | ||||||||||||||||
Net charge-offs to average loans (5) | 0.06 | — | 0.35 | 0.15 | (0.01 | ) | 0.13 | — | ||||||||||||||||||||||
NPAs to total assets | 0.09 | 0.07 | 0.08 | 0.40 | — | 0.09 | — | |||||||||||||||||||||||
(1)Interest income has been increased to reflect comparable interest on taxable securities. The rate used was 35%, reflecting the statutory federal income tax rate. (2)Excludes provision for acquired non PCI FSG loans. (3)Excludes merger related expenses. (4)Excludes effect of servicing asset and acquisition related intangibles. (5)Annualized. (6)Amounts are estimates as of 9/30/16. | ||||||||||||||||||||||||||||||
ATLANTIC CAPITAL BANCSHARES, INC. | ||||||||||||||||
Consolidated Balance Sheets (unaudited) | ||||||||||||||||
September 30, | June 30, | December 31, | September 30, | |||||||||||||
(in thousands, except share data) | 2016 | 2016 | 2015 | 2015 | ||||||||||||
ASSETS | ||||||||||||||||
Cash and due from banks | $ | 44,563 | $ | 40,309 | $ | 45,848 | $ | 45,971 | ||||||||
Interest-bearing deposits in banks | 75,750 | 239,387 | 130,900 | 90,695 | ||||||||||||
Other short-term investments | 23,159 | 20,548 | 26,137 | 24,135 | ||||||||||||
Cash and cash equivalents | 143,472 | 300,244 | 202,885 | 160,801 | ||||||||||||
Investment securities available-for-sale | 348,484 | 328,370 | 346,221 | 127,168 | ||||||||||||
Other investments | 26,370 | 22,575 | 8,034 | 3,011 | ||||||||||||
Loans held for sale | 46,600 | 29,061 | 95,465 | — | ||||||||||||
Loans held for investment | 2,008,102 | 1,942,137 | 1,790,669 | 1,046,437 | ||||||||||||
Less: allowance for loan losses | (18,534 | ) | (18,377 | ) | (18,905 | ) | (11,862 | ) | ||||||||
Loans, net | 1,989,568 | 1,923,760 | 1,771,764 | 1,034,575 | ||||||||||||
Branch premises held for sale | 5,201 | — | 7,200 | — | ||||||||||||
Premises and equipment, net | 15,213 | 21,770 | 23,145 | 3,138 | ||||||||||||
Bank owned life insurance | 61,766 | 61,378 | 60,608 | 30,479 | ||||||||||||
Goodwill and intangible assets, net | 30,071 | 31,674 | 35,232 | 1,259 | ||||||||||||
Other real estate owned | 1,727 | 951 | 1,982 | 27 | ||||||||||||
Other assets | 92,772 | 88,039 | 86,244 | 21,240 | ||||||||||||
Total assets | $ | 2,761,244 | $ | 2,807,822 | $ | 2,638,780 | $ | 1,381,698 | ||||||||
LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||||||||||||
Deposits: | ||||||||||||||||
Noninterest-bearing demand | $ | 557,783 | $ | 592,043 | $ | 544,561 | $ | 328,065 | ||||||||
Interest-bearing checking | 260,531 | 231,091 | 232,868 | 135,350 | ||||||||||||
Savings | 29,658 | 30,839 | 28,922 | 321 | ||||||||||||
Money market | 974,072 | 913,094 | 875,441 | 550,879 | ||||||||||||
Time | 172,348 | 178,615 | 183,206 | 15,434 | ||||||||||||
Brokered deposits | 194,464 | 212,623 | 183,810 | 98,559 | ||||||||||||
Deposits to be assumed in branch sale | — | — | 213,410 | — | ||||||||||||
Total deposits | 2,188,856 | 2,158,305 | 2,262,218 | 1,128,608 | ||||||||||||
Federal funds purchased and securities sold under agreements to repurchase | — | 14,047 | 11,931 | 43,000 | ||||||||||||
Federal Home Loan Bank borrowings | 170,000 | 240,000 | — | — | ||||||||||||
Long-term debt | 49,324 | 49,281 | 49,197 | 49,226 | ||||||||||||
Other liabilities | 44,601 | 42,123 | 27,442 | 11,055 | ||||||||||||
Total liabilities | 2,452,781 | 2,503,756 | 2,350,788 | 1,231,889 | ||||||||||||
SHAREHOLDERS' EQUITY | ||||||||||||||||
Preferred stock, no par value; 10,000,000 shares authorized; no shares issued and outstanding as of September 30, 2016, June 30, 2016, December 31, 2015, and September 30, 2015 | — | — | — | — | ||||||||||||
Common stock, no par value; 100,000,000 shares authorized; 24,950,099, 24,750,163, 24,425,546, and 13,562,125 shares issued and outstanding as of September 30, 2016, June 30, 2016, December 31, 2015, and September 30, 2015, respectively | 290,835 | 289,353 | 286,367 | 136,941 | ||||||||||||
Retained earnings | 14,927 | 11,219 | 3,141 | 11,302 | ||||||||||||
Accumulated other comprehensive income (loss) | 2,701 | 3,494 | (1,516 | ) | 1,566 | |||||||||||
Total shareholders’ equity | 308,463 | 304,066 | 287,992 | 149,809 | ||||||||||||
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | $ | 2,761,244 | $ | 2,807,822 | $ | 2,638,780 | $ | 1,381,698 | ||||||||
ATLANTIC CAPITAL BANCSHARES, INC. | ||||||||||||||||||||||||
Consolidated Statements of Income (unaudited) | ||||||||||||||||||||||||
(in thousands, except share and per share data) | Three months ended | Nine months ended | ||||||||||||||||||||||
September |
June 30, |
March 31, |
December |
September |
September |
September |
||||||||||||||||||
INTEREST INCOME | ||||||||||||||||||||||||
Loans, including fees | $ | 20,511 | $ | 20,282 | $ | 19,625 | $ | 16,688 | $ | 9,423 | $ | 60,418 | $ | 27,874 | ||||||||||
Investment securities available-for-sale | 1,293 | 1,327 | 1,601 | 1,224 | 664 | 4,221 | 2,077 | |||||||||||||||||
Interest and dividends on other interest-earning assets | 491 | 507 | 273 | 328 | 247 | 1,271 | 776 | |||||||||||||||||
Total interest income | 22,295 | 22,116 | 21,499 | 18,240 | 10,334 | 65,910 | 30,727 | |||||||||||||||||
INTEREST EXPENSE | ||||||||||||||||||||||||
Interest on deposits | 1,956 | 1,841 | 1,673 | 1,355 | 751 | 5,470 | 2,262 | |||||||||||||||||
Interest on Federal Home Loan Bank advances | 133 | 147 | 44 | 7 | 52 | 324 | 283 | |||||||||||||||||
Interest on federal funds purchased and securities sold under agreements to repurchase | 37 | 87 | 67 | 10 | 20 | 191 | 69 | |||||||||||||||||
Interest on long-term debt | 815 | 832 | 810 | 841 | 17 | 2,457 | 17 | |||||||||||||||||
Other | — | — | 38 | 79 | — | 38 | — | |||||||||||||||||
Total interest expense | 2,941 | 2,907 | 2,632 | 2,292 | 840 | 8,480 | 2,631 | |||||||||||||||||
NET INTEREST INCOME BEFORE PROVISION FOR LOAN LOSSES | 19,354 | 19,209 | 18,867 | 15,948 | 9,494 | 57,430 | 28,096 | |||||||||||||||||
Provision for loan losses | 463 | 777 | 368 | 7,623 | (137 | ) | 1,608 | 412 | ||||||||||||||||
NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES | 18,891 | 18,432 | 18,499 | 8,325 | 9,631 | 55,822 | 27,684 | |||||||||||||||||
NONINTEREST INCOME | ||||||||||||||||||||||||
Service charges | 1,270 | 1,392 | 1,498 | 1,265 | 521 | 4,160 | 1,348 | |||||||||||||||||
Gains on sale of securities available-for-sale | — | 11 | 33 | — | 10 | 44 | 10 | |||||||||||||||||
Gains on sale of other assets | 71 | 31 | 48 | 103 | — | 150 | — | |||||||||||||||||
Mortgage income | 632 | 447 | 339 | 163 | — | 1,418 | — | |||||||||||||||||
Trust income | 361 | 386 | 314 | 192 | — | 1,061 | — | |||||||||||||||||
Derivatives income | 69 | 98 | 65 | 89 | 67 | 232 | 215 | |||||||||||||||||
Bank owned life insurance | 424 | 398 | 393 | 365 | 227 | 1,215 | 1,794 | |||||||||||||||||
SBA lending activities | 959 | 1,204 | 880 | 904 | 745 | 3,043 | 2,006 | |||||||||||||||||
TriNet gains on sale | — | 761 | 383 | — | — | 1,144 | — | |||||||||||||||||
Gains on sale of branches | — | 3,885 | — | — | — | 3,885 | — | |||||||||||||||||
Other noninterest income | 216 | 267 | 467 | 379 | 159 | 950 | 566 | |||||||||||||||||
Total noninterest income | 4,002 | 8,880 | 4,420 | 3,460 | 1,729 | 17,302 | 5,939 | |||||||||||||||||
NONINTEREST EXPENSE | ||||||||||||||||||||||||
Salaries and employee benefits | 10,059 | 10,420 | 10,555 | 9,661 | 4,859 | 31,034 | 14,437 | |||||||||||||||||
Occupancy | 1,235 | 1,274 | 1,100 | 907 | 419 | 3,609 | 1,263 | |||||||||||||||||
Equipment and software | 862 | 724 | 686 | 608 | 243 | 2,272 | 687 | |||||||||||||||||
Professional services | 442 | 760 | 748 | 1,020 | 208 | 1,950 | 613 | |||||||||||||||||
Postage, printing and supplies | 61 | 159 | 169 | 115 | 21 | 389 | 63 | |||||||||||||||||
Communications and data processing | 617 | 694 | 916 | 555 | 313 | 2,227 | 986 | |||||||||||||||||
Marketing and business development | 269 | 317 | 267 | 197 | 90 | 853 | 213 | |||||||||||||||||
FDIC premiums | 415 | 493 | 398 | 273 | 161 | 1,306 | 516 | |||||||||||||||||
Merger and conversion costs | 579 | 1,210 | 749 | 7,172 | 718 | 2,538 | 1,982 | |||||||||||||||||
Amortization of intangibles | 520 | 668 | 762 | 526 | — | 1,950 | — | |||||||||||||||||
Other noninterest expense | 2,237 | 2,224 | 1,916 | 2,205 | 639 | 6,377 | 1,934 | |||||||||||||||||
Total noninterest expense | 17,296 | 18,943 | 18,266 | 23,239 | 7,671 | 54,505 | 22,694 | |||||||||||||||||
INCOME (LOSS) BEFORE PROVISION FOR INCOME TAXES | 5,597 | 8,369 | 4,653 | (11,454 | ) | 3,689 | 18,619 | 10,929 | ||||||||||||||||
Provision for income taxes | 1,889 | 3,222 | 1,722 | (3,293 | ) | 1,463 | 6,833 | 4,087 | ||||||||||||||||
NET INCOME (LOSS) | $ | 3,708 | $ | 5,147 | $ | 2,931 | $ | (8,161 | ) | $ | 2,226 | $ | 11,786 | $ | 6,842 | |||||||||
Net income (loss) per common share-basic | $ | 0.15 | $ | 0.21 | $ | 0.12 | $ | (0.40 | ) | $ | 0.16 | $ | 0.48 | $ | 0.51 | |||||||||
Net income (loss) per common share-diluted | $ | 0.15 | $ | 0.20 | $ | 0.12 | $ | (0.40 | ) | $ | 0.16 | $ | 0.47 | $ | 0.49 | |||||||||
Weighted average shares - basic | 24,891,822 | 24,644,755 | 24,485,900 | 20,494,895 | 13,562,125 | 24,674,953 | 13,527,195 | |||||||||||||||||
Weighted average shares - diluted | 25,260,280 | 25,158,694 | 24,993,597 | 21,004,577 | 13,904,395 | 25,106,250 | 13,866,312 | |||||||||||||||||
ATLANTIC CAPITAL BANCSHARES, INC. | ||||||||||||||||||
Average Balance Sheets and Net Interest Margin Analysis | ||||||||||||||||||
Selected Financial Information | ||||||||||||||||||
Three months ended | ||||||||||||||||||
September 30, 2016 | June 30, 2016 | |||||||||||||||||
(dollars in thousands; taxable equivalent) |
Average |
Interest |
Tax |
Average |
Interest |
Tax |
||||||||||||
Assets | ||||||||||||||||||
Interest bearing deposits in other banks | $ | 109,883 | $ | 158 | 0.57 | % | $ | 84,734 | $ | 131 | 0.62 | % | ||||||
Other short-term investments | 18,741 | 60 | 1.27 | 27,777 | 100 | 1.45 | ||||||||||||
Investment securities: | ||||||||||||||||||
Taxable investment securities | 283,303 | 1,033 | 1.45 | 329,237 | 1,183 | 1.45 | ||||||||||||
Non-taxable investment securities(1) | 52,577 | 393 | 2.97 | 29,202 | 218 | 3.00 | ||||||||||||
Total investment securities | 335,880 | 1,426 | 1.69 | 358,439 | 1,401 | 1.57 | ||||||||||||
Total loans | 2,003,180 | 20,511 | 4.07 | 2,000,685 | 20,281 | 4.08 | ||||||||||||
FHLB and FRB stock | 17,192 | 273 | 6.32 | 14,642 | 277 | 7.61 | ||||||||||||
Total interest-earning assets | 2,484,876 | 22,428 | 3.59 | 2,486,277 | 22,190 | 3.59 | ||||||||||||
Non-earning assets | 233,120 | 231,833 | ||||||||||||||||
Total assets | $ | 2,717,996 | $ | 2,718,110 | ||||||||||||||
Liabilities | ||||||||||||||||||
Interest bearing deposits: | ||||||||||||||||||
NOW, money market, and savings | 1,236,828 | 1,338 | 0.43 | 1,173,093 | 1,256 | 0.43 | ||||||||||||
Time deposits | 175,135 | 241 | 0.55 | 203,679 | 189 | 0.37 | ||||||||||||
Brokered deposits | 196,598 | 377 | 0.76 | 220,098 | 395 | 0.72 | ||||||||||||
Total interest-bearing deposits | 1,608,561 | 1,956 | 0.48 | 1,596,870 | 1,840 | 0.46 | ||||||||||||
Total borrowings | 157,957 | 170 | 0.43 | 204,231 | 235 | 0.46 | ||||||||||||
Long-term debt | 49,296 | 815 | 6.58 | 49,254 | 832 | 6.79 | ||||||||||||
Total interest-bearing liabilities | 1,815,814 | 2,941 | 0.64 | 1,850,355 | 2,907 | 0.63 | ||||||||||||
Demand deposits | 555,008 | 538,422 | ||||||||||||||||
Other liabilities | 40,532 | 30,163 | ||||||||||||||||
Shareholders' equity | 306,642 | 299,170 | ||||||||||||||||
Total liabilities and shareholders' equity | $ | 2,717,996 | $ | 2,718,110 | ||||||||||||||
Net interest spread | 2.95 | % | 2.96 | % | ||||||||||||||
Net interest income and net interest margin(2) | $ | 19,487 | 3.12 | % | $ | 19,283 | 3.12 | % | ||||||||||
(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. | ||||||||||||||||||
Three months ended | ||||||||||||
September 30, 2016 | June 30, 2016 | |||||||||||
(dollars in thousands; taxable equivalent) | Amount | Yield | Amount | Yield | ||||||||
Reported interest income on loans | $ | 20,511 | 4.07% | $ | 20,281 | 4.08% | ||||||
Less: accretion of loan acquisition discounts | (576 | ) | (525 | ) | ||||||||
Core interest income on loans | $ | 19,935 | 3.96% | $ | 19,756 | 3.97% | ||||||
Amount |
Net Interest |
Amount |
Net Interest |
|||||||||
Net interest income / net interest margin | $ | 19,487 | 3.12% | $ | 19,283 | 3.12% | ||||||
Less: | ||||||||||||
Accretion of loan acquisition discounts | (576 | ) | (525 | ) | ||||||||
Accretion of time deposit premium | (170 | ) | (234 | ) | ||||||||
Net interest income / net interest margin excluding purchase accounting | $ | 18,741 | 3.00% | $ | 18,524 | 3.00% | ||||||
ATLANTIC CAPITAL BANCSHARES, INC. | ||||||||||||||||||
Average Balance Sheets and Net Interest Margin Analysis | ||||||||||||||||||
Selected Financial Information | ||||||||||||||||||
Nine months ended | ||||||||||||||||||
September 30, 2016 | September 30, 2015 | |||||||||||||||||
(dollars in thousands; taxable equivalent) |
Average |
Interest |
Tax |
Average |
Interest |
Tax |
||||||||||||
Assets | ||||||||||||||||||
Interest bearing deposits in other banks | $ | 100,279 | $ | 481 | 0.64 | % | $ | 46,376 | $ | 87 | 0.25 | % | ||||||
Other short-term investments | 24,120 | 244 | 1.35 | 54,843 | 547 | 1.33 | ||||||||||||
Investment securities: | ||||||||||||||||||
Taxable investment securities |
337,263 | 3,714 | 1.47 | 133,641 | 2,016 | 2.02 | ||||||||||||
Non-taxable investment securities(1) | 34,945 | 768 | 2.94 | 2,320 | 94 | 5.42 | ||||||||||||
Total investment securities | 372,208 | 4,482 | 1.61 | 135,961 | 2,110 | 2.07 | ||||||||||||
Total loans | 1,965,092 | 60,418 | 4.11 | 1,051,878 | 27,874 | 3.54 | ||||||||||||
FHLB and FRB stock | 13,825 | 546 | 5.28 | 4,599 | 142 | 4.13 | ||||||||||||
Total interest-earning assets | 2,475,524 | 66,171 | 3.57 | 1,293,657 | 30,760 | 3.18 | ||||||||||||
Non-earning assets | 229,146 | 65,402 | ||||||||||||||||
Total assets | $ | 2,704,670 | $ | 1,359,059 | ||||||||||||||
Liabilities | ||||||||||||||||||
Interest bearing deposits: | ||||||||||||||||||
NOW, money market, and savings | 1,182,520 | 3,646 | 0.41 | 655,641 | 1,890 | 0.39 | ||||||||||||
Time deposits | 221,937 | 654 | 0.39 | 16,094 | 46 | 0.38 | ||||||||||||
Brokered deposits | 210,803 | 1,170 | 0.74 | 120,676 | 326 | 0.36 | ||||||||||||
Total interest-bearing deposits | 1,615,260 | 5,470 | 0.45 | 792,411 | 2,262 | 0.38 | ||||||||||||
Total borrowings | 156,148 | 553 | 0.47 | 104,861 | 369 | 0.47 | ||||||||||||
Total long-term debt | 49,254 | 2,457 | 6.66 | — | — | — | ||||||||||||
Total interest-bearing liabilities | 1,820,662 | 8,480 | 0.62 | 897,272 | 2,631 | 0.39 | ||||||||||||
Demand deposits | 549,217 | 307,991 | ||||||||||||||||
Other liabilities | 35,743 | 8,980 | ||||||||||||||||
Shareholders' equity | 299,048 | 144,816 | ||||||||||||||||
Total liabilities and shareholders' equity | $ | 2,704,670 | $ | 1,359,059 | ||||||||||||||
Net interest spread | 2.95 | % | 2.79 | % | ||||||||||||||
Net interest income and net interest margin(2) | $ | 57,691 | 3.11 | % | $ | 28,129 | 2.91 | % | ||||||||||
(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. | ||||||||||||||||||
Six months ended | |||||||||||
September 30, 2016 | September 30, 2015 | ||||||||||
(dollars in thousands; taxable equivalent) | Amount | Yield | Amount | Yield | |||||||
Reported interest income on loans | $ | 60,418 | 4.11% | $ | 27,874 | 3.54% | |||||
Less: accretion of loan acquisition discounts | (1,987 | ) | — | ||||||||
Core interest income on loans | $ | 58,431 | 3.97% | $ | 27,874 | 3.54% | |||||
Amount |
Net Interest |
Amount |
Net Interest |
||||||||
Net interest income / net interest margin | $ | 57,691 | 3.11% | $ | 28,129 | 2.91% | |||||
Less: | |||||||||||
Accretion of loan acquisition discounts | (1,987 | ) | — | ||||||||
Accretion of time deposit premium | (712 | ) | — | ||||||||
Net interest income / net interest margin excluding purchase accounting | $ | 54,992 | 2.97% | $ | 28,129 | 2.91% | |||||
ATLANTIC CAPITAL BANCSHARES, INC. | |||||||||||||||||||||||||
Period End Loans | |||||||||||||||||||||||||
2016 |
2015 |
Linked |
Year Over |
||||||||||||||||||||||
(dollars in thousands) |
Third |
Second |
First |
Fourth |
Third |
||||||||||||||||||||
Loans held for sale | |||||||||||||||||||||||||
Loans held for sale | $ | 46,600 | $ | 29,061 | $ | 61,003 | $ | 59,995 | $ | — | $ | 17,539 | $ | 46,600 | |||||||||||
Branch loans held for sale | — | — | 34,288 | 35,470 | — | — | — | ||||||||||||||||||
Total loans held for sale | $ | 46,600 | $ | 29,061 | $ | 95,291 | $ | 95,465 | $ | — | $ | 17,539 | $ | 46,600 | |||||||||||
Loans held for investment | |||||||||||||||||||||||||
Commercial loans: | |||||||||||||||||||||||||
Commercial and industrial | $ | 533,632 | $ | 508,516 | $ | 499,634 | $ | 467,083 | $ | 366,830 | $ | 25,116 | $ | 166,802 | |||||||||||
Commercial real estate: | |||||||||||||||||||||||||
Multifamily | 74,881 | 79,144 | 81,331 | 78,778 | 55,352 | (4,263 | ) | 19,529 | |||||||||||||||||
Owner occupied | 337,277 | 351,419 | 333,172 | 320,656 | 165,210 | (14,142 | ) | 172,067 | |||||||||||||||||
Investment | 451,125 | 431,633 | 429,094 | 446,979 | 219,664 | 19,492 | 231,461 | ||||||||||||||||||
Construction and land: | |||||||||||||||||||||||||
1-4 family residential construction | 11,273 | 9,611 | 8,540 | 6,609 | — | 1,662 | 11,273 | ||||||||||||||||||
Other construction, development, and land | 202,063 | 199,536 | 174,899 | 159,749 | 106,934 | 2,527 | 95,129 | ||||||||||||||||||
Mortgage warehouse loans | 171,251 | 126,108 | 123,875 | 84,350 | 89,816 | 45,143 | 81,435 | ||||||||||||||||||
Total commercial loans | 1,781,502 | 1,705,967 | 1,650,545 | 1,564,204 | 1,003,806 | 75,535 | 777,696 | ||||||||||||||||||
Residential: | |||||||||||||||||||||||||
Residential mortgages | 100,046 | 103,313 | 106,433 | 110,381 | 726 | (3,267 | ) | 99,320 | |||||||||||||||||
Home equity | 78,952 | 80,321 | 83,094 | 80,738 | 27,186 | (1,369 | ) | 51,766 | |||||||||||||||||
Total residential loans | 178,998 | 183,634 | 189,527 | 191,119 | 27,912 | (4,636 | ) | 151,086 | |||||||||||||||||
Consumer | 30,453 | 29,788 | 30,905 | 30,451 | 18,741 | 665 | 11,712 | ||||||||||||||||||
Other | 20,736 | 28,168 | 20,925 | 6,901 | — | (7,432 | ) | 20,736 | |||||||||||||||||
2,011,689 | 1,947,557 | 1,891,902 | 1,792,675 | 1,050,459 | 64,132 | 961,230 | |||||||||||||||||||
Less net deferred fees and other unearned income | (3,587 | ) | (5,420 | ) | (5,139) | (2,006 | ) | (4,022) | 1,833 | 435 | |||||||||||||||
Total loans held for investment | $ | 2,008,102 | $ | 1,942,137 | $ | 1,886,763 | $ | 1,790,669 | $ | 1,046,437 | $ | 65,965 | $ | 961,665 | |||||||||||
ATLANTIC CAPITAL BANCSHARES, INC. | |||||||||||||||||||||
Allowance for Loan Losses Activity and Credit Quality | |||||||||||||||||||||
2016 | 2015 | ||||||||||||||||||||
(dollars in thousands) |
Third |
Second |
First |
Fourth |
Third |
||||||||||||||||
Balance at beginning of period | $ | 18,377 | $ | 17,608 | $ | 18,905 | $ | 11,862 | $ | 11,985 | |||||||||||
Provision for loan losses | 463 | 777 | 368 | 7,623 | (137 | ) | |||||||||||||||
Loans charged-off: | |||||||||||||||||||||
Commercial and industrial | (61 | ) | (5 | ) | (1,465 | ) | — | — | |||||||||||||
Commercial real estate | (226 | ) | — | (140 | ) | (500 | ) | — | |||||||||||||
Residential mortgages | — | (2 | ) | — | — | — | |||||||||||||||
Home equity | (9 | ) | (23 | ) | — | — | — | ||||||||||||||
Consumer | (60 | ) | (38 | ) | (146 | ) | (128 | ) | — | ||||||||||||
Other | (5 | ) | — | — | — | — | |||||||||||||||
Total loans charged-off | (361 | ) | (68 | ) | (1,751 | ) | (628 | ) | — | ||||||||||||
Recoveries on loans previously charged-off: | |||||||||||||||||||||
Construction and land | 12 | — | — | — | — | ||||||||||||||||
Commercial and industrial | 2 | — | 15 | — | 14 | ||||||||||||||||
Commercial real estate | 20 | — | 2 | — | — | ||||||||||||||||
Residential mortgages | 5 | — | — | — | — | ||||||||||||||||
Home equity | 2 | — | — | — | — | ||||||||||||||||
Consumer | 12 | 60 | 69 | 48 | — | ||||||||||||||||
Other | 2 | — | — | — | — | ||||||||||||||||
Total recoveries | 55 | 60 | 86 | 48 | 14 | ||||||||||||||||
Net charge-offs | (306 | ) | (8 | ) | (1,665 | ) | (580 | ) | 14 | ||||||||||||
Balance at period end | $ | 18,534 | $ | 18,377 | $ | 17,608 | $ | 18,905 | $ | 11,862 | |||||||||||
Loans held for investment | |||||||||||||||||||||
PCI Loans | $ | 17,237 | $ | 19,733 | $ | 22,893 | $ | 24,349 | $ | — | |||||||||||
Non-PCI Loans | 1,990,865 | 1,922,404 | 1,863,870 | 1,766,320 | 1,046,437 | ||||||||||||||||
$ | 2,008,102 | $ | 1,942,137 | $ | 1,886,763 | $ | 1,790,669 | $ | 1,046,437 | ||||||||||||
Non-performing loans - PCI | $ | 2,348 | $ | 1,082 | $ | 911 | $ | 1,422 | $ | — | |||||||||||
Non-performing loans - Non-PCI | $ | 792 | $ | 922 | $ | 566 | $ | 8,549 | $ | — | |||||||||||
Foreclosed properties (OREO) | 1,727 | 951 | 1,760 | 1,982 | 27 | ||||||||||||||||
Total nonperforming assets | $ | 2,519 | $ | 1,873 | $ | 2,326 | $ | 10,531 | $ | 27 | |||||||||||
Allowance for loan losses to loans | 0.92 | % | 0.95 | % | 0.93 | % | 1.06 | % | 1.13 | % | |||||||||||
Net charge-offs to average loans (1) | 0.06 | — | 0.35 | 0.15 | (0.01 | ) | |||||||||||||||
Nonperforming loans as a percentage of total loans(2) | 0.04 | 0.05 | 0.02 | 0.45 | — | ||||||||||||||||
Nonperforming assets as a percentage of total assets(2) | 0.09 | 0.07 | 0.08 | 0.40 | — | ||||||||||||||||
(1)Annualized (2)Excludes non-performing PCI loans | |||||||||||||||||||||
ATLANTIC CAPITAL BANCSHARES, INC. | |||||||||||||||||||||||||||
Period End Deposits | |||||||||||||||||||||||||||
2016 | 2015 |
Linked |
Year Over |
||||||||||||||||||||||||
(dollars in thousands) |
Third |
Second |
First |
Fourth |
Third |
||||||||||||||||||||||
DDA | $ | 557,783 | $ | 592,043 | $ | 560,363 | $ | 544,561 | $ | 328,065 | $ | (34,260 | ) | $ | 229,718 | ||||||||||||
NOW | 260,531 | 231,091 | 215,176 | 232,868 | 135,350 | 29,440 | 125,181 | ||||||||||||||||||||
Savings | 29,658 | 30,839 | 29,788 | 28,922 | 321 | (1,181 | ) | 29,337 | |||||||||||||||||||
Money Market | 974,072 | 913,094 | 862,120 | 875,441 | 550,879 | 60,978 | 423,193 | ||||||||||||||||||||
Time | 172,348 | 178,615 | 187,750 | 183,206 | 15,434 | (6,267 | ) | 156,914 | |||||||||||||||||||
Brokered | 194,464 | 212,623 | 229,408 | 183,810 | 98,559 | (18,159 | ) | 95,905 | |||||||||||||||||||
Deposits to be assumed in branch sale | — | — | 197,857 | 213,410 | — | — | — | ||||||||||||||||||||
Total Deposits | $ | 2,188,856 | $ | 2,158,305 | $ | 2,282,462 | $ | 2,262,218 | $ | 1,128,608 | $ | 30,551 | $ | 1,060,248 | |||||||||||||
Payments Clients | $ | 212,049 | $ | 295,440 | $ | 300,348 | $ | 261,102 | $ | 170,554 | $ | (83,391 | ) | $ | 41,495 | ||||||||||||
Average Deposits(1) | |||||||||||||||||||||||||||
2016 | 2015 |
Linked |
Year Over |
||||||||||||||||||||||||
(dollars in thousands) |
Third |
Second |
First |
Fourth |
Third |
||||||||||||||||||||||
DDA | $ | 555,008 | $ | 538,422 | $ | 554,547 | $ | 486,860 | $ | 325,474 | $ | 16,586 | $ | 229,534 | |||||||||||||
NOW | 282,701 | 272,556 | 302,376 | 254,821 | 154,776 | 10,145 | 127,925 | ||||||||||||||||||||
Savings | 30,692 | 35,090 | 45,571 | 30,024 | 425 | (4,398 | ) | 30,267 | |||||||||||||||||||
Money Market | 923,435 | 865,447 | 769,369 | 730,582 | 506,064 | 57,988 | 417,371 | ||||||||||||||||||||
Time | 175,135 | 203,679 | 267,330 | 184,257 | 15,756 | (28,544 | ) | 159,379 | |||||||||||||||||||
Brokered | 196,598 | 220,098 | 216,490 | 199,748 | 98,939 | (23,500 | ) | 97,659 | |||||||||||||||||||
Total Deposits | $ | 2,163,569 | $ | 2,135,292 | $ | 2,155,683 | $ | 1,886,292 | $ | 1,101,434 | $ | 28,277 | $ | 1,062,135 | |||||||||||||
Payments Clients | $ | 184,895 | $ | 176,474 | $ | 155,860 | $ | 198,539 | $ | 140,346 | $ | 8,421 | $ | 44,549 | |||||||||||||
Noninterest bearing deposits as a percentage of average deposits | 25.7 | % | 25.2 | % | 25.7 | % | 25.8 | % | 29.6 | % | |||||||||||||||||
Cost of deposits | 0.36 | % | 0.35 | % | 0.31 | % | 0.28 | % | 0.27 | % | |||||||||||||||||
(1) Includes average balances of deposits to be assumed in branch sale. | |||||||||||||||||||||||||||
ATLANTIC CAPITAL BANCSHARES, INC. | |||||||||||||||||||||||||||||||||||
Non-GAAP Performance Measures Reconciliation | |||||||||||||||||||||||||||||||||||
(in thousands, except share and per share data) | 2016 | 2015 |
For the nine months |
||||||||||||||||||||||||||||||||
Third |
Second |
First |
Fourth |
Third |
2016 | 2015 | |||||||||||||||||||||||||||||
Interest income reconciliation | |||||||||||||||||||||||||||||||||||
Interest income - GAAP | $ | 22,295 | $ | 22,116 | $ | 21,499 | $ | 18,240 | $ | 10,334 | $ | 65,910 | $ | 30,727 | |||||||||||||||||||||
Taxable equivalent adjustment | 133 | 74 | 54 | 30 | 11 | 261 | 33 | ||||||||||||||||||||||||||||
Interest income - taxable equivalent | $ | 22,428 | $ | 22,190 | $ | 21,553 | $ | 18,270 | $ | 10,345 | $ | 66,171 | $ | 30,760 | |||||||||||||||||||||
Net interest income reconciliation | |||||||||||||||||||||||||||||||||||
Net interest income - GAAP | $ | 19,354 | $ | 19,209 | $ | 18,867 | $ | 15,948 | $ | 9,494 | $ | 57,430 | $ | 28,096 | |||||||||||||||||||||
Taxable equivalent adjustment | 133 | 74 | 54 | 30 | 11 | 261 | 33 | ||||||||||||||||||||||||||||
Net interest income - taxable equivalent | $ | 19,487 | $ | 19,283 | $ | 18,921 | $ | 15,978 | $ | 9,505 | $ | 57,691 | $ | 28,129 | |||||||||||||||||||||
Operating provision for loan losses reconciliation | |||||||||||||||||||||||||||||||||||
Provision for loan losses - GAAP | $ | 463 | $ | 777 | $ | 368 | $ | 7,623 | $ | (137 | ) | $ | 1,608 | $ | 412 | ||||||||||||||||||||
Provision for acquired non PCI FSG loans | — | — | — | (6,764 | ) | — | — | — | |||||||||||||||||||||||||||
Operating provision for loan losses | $ | 463 | $ | 777 | $ | 368 | $ | 859 | $ | (137 | ) | $ | 1,608 | $ | 412 | ||||||||||||||||||||
Operating noninterest income reconciliation | |||||||||||||||||||||||||||||||||||
Noninterest income - GAAP | $ | 4,002 | $ | 8,880 | $ | 4,420 | $ | 3,460 | $ | 1,729 | $ | 17,302 | $ | 5,939 | |||||||||||||||||||||
Gain on sale of branches | — | (3,885 | ) | — | — | — | (3,885 | ) | — | ||||||||||||||||||||||||||
Operating noninterest income | $ | 4,002 | $ | 4,995 | $ | 4,420 | $ | 3,460 | $ | 1,729 | $ | 13,417 | $ | 5,939 | |||||||||||||||||||||
Operating noninterest expense reconciliation | |||||||||||||||||||||||||||||||||||
Noninterest expense - GAAP | $ | 17,296 | $ | 18,943 | $ | 18,266 | $ | 23,239 | $ | 7,671 | $ | 54,505 | $ | 22,694 | |||||||||||||||||||||
Merger-related expenses | (579 | ) | (1,210 | ) | (749 | ) | (7,172 | ) | (718 | ) | (2,538 | ) | (1,982 | ) | |||||||||||||||||||||
Divestiture expenses | — | (305 | ) | — | — | — | (305 | ) | — | ||||||||||||||||||||||||||
Operating noninterest expense | $ | 16,717 | $ | 17,428 | $ | 17,517 | $ | 16,067 | $ | 6,953 | $ | 51,662 | $ | 20,712 | |||||||||||||||||||||
Operating income before income taxes reconciliation | |||||||||||||||||||||||||||||||||||
Income (loss) before income taxes - GAAP | $ | 5,597 | $ | 8,369 | $ | 4,653 | $ | (11,454 | ) | $ | 3,689 | $ | 18,619 | $ | 10,929 | ||||||||||||||||||||
Taxable equivalent adjustment | 133 | 74 | 54 | 30 | 11 | 261 | 33 | ||||||||||||||||||||||||||||
Merger-related expenses | 579 | 1,210 | 749 | 7,172 | 718 | 2,538 | 1,982 | ||||||||||||||||||||||||||||
Divestiture expenses | — | 305 | — | — | — | 305 | — | ||||||||||||||||||||||||||||
Gain on sale of branches | — | (3,885 | ) | — | — | — | (3,885 | ) | — | ||||||||||||||||||||||||||
Provision for acquired non PCI FSG loans | — | — | — | 6,764 | — | — | — | ||||||||||||||||||||||||||||
Operating income before income taxes | $ | 6,309 | $ | 6,073 | $ | 5,456 | $ | 2,512 | $ | 4,418 | $ | 17,838 | $ | 12,944 | |||||||||||||||||||||
Income tax reconciliation | |||||||||||||||||||||||||||||||||||
Income tax expense - GAAP | $ | 1,889 | $ | 3,222 | $ | 1,722 | $ | (3,293 | ) | $ | 1,463 | 6,833 | 4,087 | ||||||||||||||||||||||
Taxable equivalent adjustment | 133 | 74 | 54 | 30 | 11 | 261 | 33 | ||||||||||||||||||||||||||||
Merger related expenses, tax benefit | 223 | 467 | 289 | 2,769 | 275 | 979 | 760 | ||||||||||||||||||||||||||||
Divestiture expenses, tax benefit | — | 118 | — | — | — | 118 | — | ||||||||||||||||||||||||||||
Gain on sale of branches, tax expense | — | (1,500 | ) | — | — | — | (1,500 | ) | — | ||||||||||||||||||||||||||
Provision for acquired non PCI FSG loans, tax benefit | — | — | — | 2,611 | — | — | — | ||||||||||||||||||||||||||||
Operating income tax expense | $ | 2,245 | $ | 2,381 | $ | 2,065 | $ | 2,117 | $ | 1,749 | $ | 6,691 | $ | 4,880 | |||||||||||||||||||||
Net income reconciliation | |||||||||||||||||||||||||||||||||||
Net income - GAAP | $ | 3,708 | $ | 5,147 | $ | 2,931 | $ | (8,161 | ) | $ | 2,226 | 11,786 | $ | 6,842 | |||||||||||||||||||||
Merger related expenses, net of income tax | 356 | 743 | 460 | 4,403 | 443 | 1,559 | 1,222 | ||||||||||||||||||||||||||||
Divestiture expenses, net of income tax | — | 187 | — | — | — | 187 | — | ||||||||||||||||||||||||||||
Gain on sale of branches, net of income tax | — | (2,385 | ) | — | — | — | (2,385 | ) | — | ||||||||||||||||||||||||||
Provision for acquired non PCI FSG loans, net of income tax | — | — | — | 4,153 | — | — | — | ||||||||||||||||||||||||||||
Operating net income | $ | 4,064 | $ | 3,692 | $ | 3,391 | $ | 395 | $ | 2,669 | $ | 11,147 | $ | 8,064 | |||||||||||||||||||||
Diluted earnings per share reconciliation | |||||||||||||||||||||||||||||||||||
Diluted earnings per share - GAAP | $ | 0.15 | $ | 0.20 | $ | 0.12 | $ | (0.40 | ) | $ | 0.16 | $ | 0.47 | $ | 0.49 | ||||||||||||||||||||
Merger related expenses | 0.01 | 0.03 | 0.02 | 0.42 | 0.03 | 0.07 | 0.09 | ||||||||||||||||||||||||||||
Net gain on sale of branches | — | (0.08 | ) | — | — | — | (0.10 | ) | — | ||||||||||||||||||||||||||
Diluted earnings per share - operating | $ | 0.16 | $ | 0.15 | $ | 0.14 | $ | 0.02 | $ | 0.19 | $ | 0.44 | $ | 0.58 | |||||||||||||||||||||
Book value per common share reconciliation | |||||||||||||||||||||||||||||||||||
Total shareholders’ equity | $ | 308,463 | $ | 304,066 | $ | 294,652 | $ | 287,992 | $ | 149,809 | $ | 308,463 | $ | 149,809 | |||||||||||||||||||||
Intangible assets | (30,071 | ) | (31,674 | ) | (33,914 | ) | (35,232 | ) | (1,259 | ) | (30,071 | ) | (1,259 | ) | |||||||||||||||||||||
Total tangible common equity | $ | 278,392 | $ | 272,392 | $ | 260,738 | $ | 252,760 | $ | 148,550 | $ | 278,392 | $ | 148,550 | |||||||||||||||||||||
Common shares outstanding | 24,950,099 | 24,750,163 | 24,569,823 | 24,425,546 | 13,562,125 | 24,950,099 | 13,562,125 | ||||||||||||||||||||||||||||
Book value per common share - GAAP | 12.36 | 12.29 | 11.99 | 11.79 | 11.05 | 12.36 | 11.05 | ||||||||||||||||||||||||||||
Tangible book value | 11.16 | 11.01 | 10.61 | 10.35 | 10.95 | 11.16 | 10.95 | ||||||||||||||||||||||||||||
Return on average equity reconciliation | |||||||||||||||||||||||||||||||||||
Net income - GAAP | $ | 3,708 | $ | 5,147 | $ | 2,931 | $ | (8,161 | ) | $ | 2,226 | $ | 11,786 | $ | 6,842 | ||||||||||||||||||||
Merger related expenses, net of income tax | 356 | 743 | 460 | 4,403 | 443 | 1,559 | 1,222 | ||||||||||||||||||||||||||||
Divestiture expenses, net of income tax | — | 187 | — | — | — | 187 | — | ||||||||||||||||||||||||||||
Gain on sale of branches, net of income tax | — | (2,385 | ) | — | — | — | (2,385 | ) | — | ||||||||||||||||||||||||||
Provision for acquired FSG loans, net of income tax | — | — | — | 4,153 | — | — | — | ||||||||||||||||||||||||||||
Operating net income | $ | 4,064 | $ | 3,692 | $ | 3,391 | $ | 395 | $ | 2,669 | $ | 11,147 | $ | 8,064 | |||||||||||||||||||||
Average shareholders' equity | 306,642 | 299,170 | 291,806 | 246,842 | 146,430 | 299,048 | 144,816 | ||||||||||||||||||||||||||||
Return on average equity - GAAP | 4.84 | % | 6.88 | % | 4.02 | % | (13.22 | ) | % | 6.08 | % | 5.25 | % | 6.30 | % | ||||||||||||||||||||
Return on average equity - operating | 5.30 | 4.94 | 4.65 | 0.64 | 7.29 | 4.97 | 7.42 | ||||||||||||||||||||||||||||
Return on average assets reconciliation | |||||||||||||||||||||||||||||||||||
Net income - GAAP | $ | 3,708 | $ | 5,147 | $ | 2,931 | $ | (8,161 | ) | $ | 2,226 | $ | 11,786 | $ | 6,842 | ||||||||||||||||||||
Merger related expenses, net of income tax | 356 | 743 | 460 | 4,403 | 443 | 1,559 | 1,222 | ||||||||||||||||||||||||||||
Divestiture expenses, net of income tax | — | 187 | — | — | — | 187 | — | ||||||||||||||||||||||||||||
Gain on sale of branches, net of income tax | — | (2,385 | ) | — | — | — | (2,385 | ) | — | ||||||||||||||||||||||||||
Provision for acquired FSG loans, net of income tax | — | — | — | 4,153 | — | — | — | ||||||||||||||||||||||||||||
Operating net income | $ | 4,064 | $ | 3,692 | $ | 3,391 | $ | 395 | $ | 2,669 | $ | 11,147 | $ | 8,064 | |||||||||||||||||||||
Average assets | 2,717,996 | 2,718,110 | 2,620,750 | 2,248,614 | 1,349,997 | 2,704,670 | 1,359,059 | ||||||||||||||||||||||||||||
Return on average assets - GAAP | 0.55 | % | 0.76 | % | 0.45 | % | (1.45 | ) | % | 0.66 | % | 0.58 | % | 0.67 | % | ||||||||||||||||||||
Return on average assets - operating | 0.60 | 0.54 | 0.52 | 0.07 | 0.79 | 0.55 | 0.79 | ||||||||||||||||||||||||||||
Efficiency ratio reconciliation | |||||||||||||||||||||||||||||||||||
Noninterest income - GAAP | $ | 4,002 | $ | 8,880 | $ | 4,420 | $ | 3,460 | $ | 1,729 | $ | 17,302 | $ | 5,939 | |||||||||||||||||||||
Gain on sale of branches | — | (3,885 | ) | — | — | — | (3,885 | ) | — | ||||||||||||||||||||||||||
Operating noninterest income | $ | 4,002 | $ | 4,995 | $ | 4,420 | $ | 3,460 | $ | 1,729 | $ | 13,417 | $ | 5,939 | |||||||||||||||||||||
Noninterest expense - GAAP | $ | 17,296 | $ | 18,943 | $ | 18,266 | $ | 23,239 | $ | 7,671 | $ | 54,505 | $ | 22,694 | |||||||||||||||||||||
Merger-related expenses | (579 | ) | (1,210 | ) | (749 | ) | (7,172 | ) | (718 | ) | (2,538 | ) | (1,982 | ) | |||||||||||||||||||||
Divestiture expenses | — | (305 | ) | — | — | — | (305 | ) | — | ||||||||||||||||||||||||||
Operating noninterest expense | $ | 16,717 | $ | 17,428 | $ | 17,517 | $ | 16,067 | $ | 6,953 | $ | 51,662 | $ | 20,712 | |||||||||||||||||||||
Net interest income | 19,354 | 19,209 | 18,867 | 15,948 | 9,494 | 57,430 | 28,096 | ||||||||||||||||||||||||||||
Efficiency ratio | 71.57 | % | 72.00 | % | 75.22 | % | 82.79 | % | 61.95 | % | 72.92 | % | 60.86 | % | |||||||||||||||||||||
Tangible equity to tangible assets reconciliation | |||||||||||||||||||||||||||||||||||
Total shareholders’ equity | $ | 308,463 | $ | 304,066 | $ | 294,652 | $ | 287,992 | $ | 149,809 | $ | 308,463 | $ | 149,809 | |||||||||||||||||||||
Intangible assets | (30,071 | ) | (31,674 | ) | (33,914 | ) | (35,232 | ) | (1,259 | ) | (30,071 | ) | (1,259 | ) | |||||||||||||||||||||
Total tangible common equity | $ | 278,392 | $ | 272,392 | $ | 260,738 | $ | 252,760 | $ | 148,550 | $ | 278,392 | $ | 148,550 | |||||||||||||||||||||
Total assets | $ | 2,761,244 | $ | 2,807,822 | $ | 2,724,669 | $ | 2,638,780 | $ | 1,381,698 | $ | 2,761,244 | $ | 1,381,698 | |||||||||||||||||||||
Intangible assets | (30,071 | ) | (31,674 | ) | (33,914 | ) | (35,232 | ) | (1,259 | ) | (30,071 | ) | (1,259 | ) | |||||||||||||||||||||
Total tangible assets | $ | 2,731,173 | $ | 2,776,148 | $ | 2,690,755 | $ | 2,603,548 | $ | 1,380,439 | $ | 2,731,173 | $ | 1,380,439 | |||||||||||||||||||||
Tangible common equity to tangible assets | 10.19 | % | 9.81 | % | 9.69 | % | 9.71 | % | 10.76 | % | 10.19 | % | 10.76 | % | |||||||||||||||||||||
Deposits excluding deposits to be assumed in branch sales | |||||||||||||||||||||||||||||||||||
Total deposits | $ | 2,188,856 | $ | 2,158,305 | $ | 2,282,462 | $ | 2,262,218 | $ | 1,128,608 | $ | 2,188,856 | $ | 1,128,608 | |||||||||||||||||||||
Deposits to be assumed in branch sales | — | — | 197,857 | 213,410 | — | — | — | ||||||||||||||||||||||||||||
Deposits excluding deposits to be assumed in branch sales | $ | 2,188,856 | $ | 2,158,305 | $ | 2,084,605 | $ | 2,048,808 | $ | 1,128,608 | $ | 2,188,856 | $ | 1,128,608 | |||||||||||||||||||||