Atlantic Capital Bancshares Inc
Atlantic Capital Bancshares — Q2 2021 Earnings Presentation
33 slides from Atlantic Capital Bancshares's earnings presentation, Jul 23, 2021
Slide 1: Investor Presentation Q2 2021
Proprietary & Confidential INVESTOR PRESENTATION | Q2 2021 atlanticcapitalbank.com NASDAQ TICKER: ACBI
Slide 2: Forward-Looking Statements Disclaimer and Non-GAAP Financial Information
atlanticcapitalbank.com Forward-Looking Statements Disclaimer and Non-GAAP Financial Information This presentation contains forward-looking statements within the meaning of section 27A of the Securities Act of 1933, as amended, and 21E of the Securities Exchange Act of 1934, as amended (the “Exchang
Slide 3: Q2 2021 Overview
atlanticcapitalbank.com Q2 2021 Overview Performance Highlights Credit Update 3 Atlantic Capital produced another quarter of strong operating results. • Reported net income was $18.6 million or $0.58 per diluted share. • Taxable equivalent revenue increased 34.4% annualized from Q1 2021 and 21.7% ye
Slide 4: Financial Highlights: Continuing Operations
atlanticcapitalbank.com Financial Highlights: Continuing Operations (1) Pre-provision net revenue (PPNR) is calculated as the sum of taxable equivalent net interest income and noninterest income less noninterest expense (except provision for credit losses). Dollars in millions. For a reconciliation
Slide 5: Commercial Lending Focus
Owner-occupied CRE 17% atlanticcapitalbank.com Commercial Lending Focus $688 $790 $944 $1,063 $1,134 $1,115 $1,160 $622 $605 $653 $686 $681 $693 $745 $176 $203 $184 $61 $62 $80 $73 $65 $71 $70 $144 $192 $219 $106 $1,519 $2,301 Loans from Continuing Operations Loan yield Commercial(1) CRE(2) Consumer
Slide 6: Strong Core Deposit Franchise
atlanticcapitalbank.com Strong Core Deposit Franchise 28% 32% 33% 33% 34% 36% 39% 56% 56% 61% 61% 58% 53% 49% 1% 1% 1% 1% 5% 9% 9% 15% 3% 3% 3% 11% 5% $3,157 5% Average Deposits from Continuing Operations Dollars in millions. Deposit figures represent average balances. Prior periods have been retros
Slide 7: Atlanta's Hometown Business Bank
atlanticcapitalbank.com Atlanta’s Hometown Business Bank • C&I Banking – Entrepreneurs and emerging growth companies value experienced commercial bankers attuned to clients’ needs. • Commercial Real Estate – Established relationships with experienced developers of institutional grade properties. • P
Slide 8: Rapidly Growing Fintech & Payments Businesses
atlanticcapitalbank.com Rapidly Growing Fintech & Payments Businesses • Powering fintech and payments companies across the US • Rapidly growing recurring revenue stream • Top 40 ACH Bank in the US(1) • Diversified platform of capabilities • High volume ACH • Fintech partnerships • Card issuance (foc
Slide 9: Financial Update: Q2 2021 Income Summary
atlanticcapitalbank.com Financial Update: Q2 2021 Income Summary Net interest income(1) 26,035 $ 23,710 $ 21,985 $ 18% Provision for credit losses (933) (4,519) 8,863 -111% Noninterest income 3,584 3,562 2,343 53% Noninterest expense 15,197 15,149 12,904 18% Income before taxes 15,355 16,642 2,561 5
Slide 10: Balance Sheet Liquidity
atlanticcapitalbank.com Balance Sheet Liquidity Average Loan / Deposit Ratio 88% 89% 77% 72% 68% Q2 2020 Q3 2020 Q4 2020 Q1 2021 Q2 2021 Average Interest Bearing Deposits in Other Banks $129,989 $136,459 $435,939 $561,809 $687,795 Q2 2020 Q3 2020 Q4 2020 Q1 2021 Q2 2021 • Atlantic Capital’s liquidit
Slide 11: Net Interest Margin
atlanticcapitalbank.com Net Interest Margin NIM by Quarter(1) Net Interest Income by Quarter(1) Dollars in thousands Income and margin from continuing operations (1)Net interest income and net interest margin are taxable equivalent and are non-GAAP financial measures. Taxable equivalent net interest
Slide 12: Noninterest Expense Overview
atlanticcapitalbank.com Noninterest Expense Overview Dollars in thousands (1) Continuing operations Noninterest Expense and Efficiency Ratio by Year(1) Noninterest Expense $50,099 $52,834 $49,991 $53,108 $52,659 76.3% 70.4% 57.9% 58.0% 54.1% 2016 2017 2018 2019 2020 Q2 2021 Q1 2021 Q2 2020 Salaries
Slide 13: Strong Capital Position
atlanticcapitalbank.com Strong Capital Position (1)For a reconciliation of this non-GAAP financial measure, see slides 31-32. (2)Amounts are estimates as of June 30, 2021 • Capital levels remained strong but were impacted by the increase in deposits and corresponding increase in the size of the bala
Slide 14: Strong Historical Credit Quality
atlanticcapitalbank.com Strong Historical Credit Quality Non-performing Assets / Total Assets Net Charge-Offs / Total Average Loans (0.01%) 0.05% 0.11% 0.23% 0.02% 0.11% 0.11% 0.04% 0.10% 2014 2015 2016 2017 2018 2019 2020 Q1 2021 Q2 2021 0.12% 0.40% 0.13% 0.14% 0.20% 0.26% 0.13% 0.06% 0.14% Highlig
Slide 15: Current Expected Credit Losses (CECL)
atlanticcapitalbank.com Current Expected Credit Losses (CECL) $19,848 $27,734 $35,085 $34,765 $34,946 $30,189 $28,689 1.06% 1.43% 1.80% 1.78% 1.70% 1.45% 1.33% 1.43% 1.61% 1.59% 1.55% 1.31% 1.27% Day 1 3/31/20 6/30/20 9/30/20 12/31/20 3/31/21 6/30/21 Allowance for Credit Losses (ACL) Allowance for L
Slide 16: Hotel Portfolio
atlanticcapitalbank.com Hotel Portfolio • $112 million outstanding net of SBA/USDA guaranteed portions as of 6/30/2021 • Weighted average original LTV 66% • Average occupancy has increased to above 60% from 49% in February 2021 • $16 million special mention, $1 million classified, $0 non- accrual Ho
Slide 17: Restaurant Portfolio
atlanticcapitalbank.com Restaurant Portfolio Restaurant Loans by State Restaurant Portfolio Highlights Restaurant Loans by Concept Restaurant Loans by Type • $196 million outstanding as of 6/30/2021 • 94% QSR; Dunkin’ 42% of QSR • $16 million special mention, $3 million classified, $0 non- accrual •
Slide 18: Paycheck Protection Program (PPP) Update
atlanticcapitalbank.com Paycheck Protection Program (PPP) Update Dollars in thousands • $2.9 million in fees still to be recognized • 537 PPP loans totaling $113 million forgiven during the second quarter 18 Ending Balances and Total Yield Interest and Fee Income $234,049 $231,834 $192,160 $218,766
Slide 19: Appendix
Appendix
Slide 20: Management Biographies
atlanticcapitalbank.com Management Biographies Douglas Williams President and Chief Executive Officer • President and CEO of Atlantic Capital since its inception • Former Managing Director and Head of Wachovia Corporation’s International Corporate Finance Group • Held numerous roles within Wachovia,
Slide 21: Atlanta's Hometown Business Bank
atlanticcapitalbank.com Atlanta’s Hometown Business Bank • Proven underwriting; superior credit quality • Lead with strong risk and compliance • Strong capital • Capitalize on Atlanta market opportunities • Fintech and processing businesses • Core deposit strength Fundamentally Sound Positioned for
Slide 22: Atlanta's Hometown Business Bank: Metro Highlights
atlanticcapitalbank.com Atlanta’s Hometown Business Bank Atlanta metro highlights: •#1 for economic growth potential (among large metro areas) • 16 Fortune 500 headquarters •#1 world’s busiest airport •#4 metro area for largest increase in population (2018-2019) •#2 moving destination • 70% of all U
Slide 23: Investment Portfolio
atlanticcapitalbank.com Investment Portfolio Portfolio Yield Tax-exempt Municipal 33% Taxable Municipal 11% MBS 45% Agency CMO 6% Corporate 4% CDs 1% Sector Allocation at 6/30/2021 1.73% 2.25% 2.48% 2.69% 2.88% 2.61% 2016 2017 2018 2019 2020 Q2 2021 Municipal Bond Ratings 6/30/2021 AAA 43% AA+ 22% A
Slide 24: Summary of Loan Portfolio
atlanticcapitalbank.com Summary of Loan Portfolio Borrowers by State(2) Highlights C&I Concentrations(1) (2) CRE Concentrations by Property Type(1) GA $1,275MM, 74% TN $98MM, 6% FL $87MM, 5% TX $25MM, 2% PA $25MM, 1% Other $211MM, 12% (GA 81% excluding SBA and Franchise) (1) Commercial includes comm
Slide 25: Loan Portfolio by Risk Rating
atlanticcapitalbank.com Loan Portfolio by Risk Rating Pass Special Mention Substandard Doubtful Total Pass Special Mention Substandard Doubtful Total Commercial - commercial and industrial 818,155 $ 38,319 $ 16,856 $ - $ 873,330 $ 872,952 $ 66,813 $ 14,288 $ - $ 954,053 $ Commercial - commercial rea
Slide 26: Shared National Credit Portfolio
atlanticcapitalbank.com Shared National Credit Portfolio SNC Portfolio Highlights SNC Portfolio by Industry • $173 million outstanding as of 6/30/2021 • Average commitment $12 million • 19% highly leveraged transactions (outstandings) • $15 million special mention, no classified, no non-accrual Othe
Slide 27: Balance Sheet
atlanticcapitalbank.com Balance Sheet (in thousands, except share data) Jun. 30, Mar. 31, Dec. 31, Jun. 30, 2021 2021 2020 2020 ASSETS Cash and due from banks $ 35,530 $ 32,850 $ 16,865 $ 33,759 Interest-bearing deposits in banks 593,195 612,966 636,537 33,038 Cash and cash equivalents 628,725 645,8
Slide 28: Period End Loans
atlanticcapitalbank.com Period End Loans (dollars in thousands) June 30, 2021 March 31, 2021 December 31, 2020 September 30, 2020 June 30, 2020 Loans held for sale Loans held for sale $ - $ 1,847 $ - $ 859 $ 1,153 $ (1,847) $ (1,153) Loans held for sale - discontinued operations - - - - - - - Total
Slide 29: Deposits: Period End and Average
atlanticcapitalbank.com Deposits: Period End and Average Period End Deposits (dollars in thousands) June 30, 2021 March 31, 2021 December 31, 2020 September 30, 2020 June 30, 2020 Linked Quarter Change Year Over Year Change DDA $ 1,374,018 $ 1,280,524 $ 1,033,765 $ 843,656 $ 883,662 $ 93,494 $ 490,3
Slide 30: Income Statements
atlanticcapitalbank.com Income Statements (in thousands except share and per share data) June 30, 2021 March 31, 2021 December 31, 2020 September 30, 2020 June 30, 2020 Total interest income $ 27,618 $ 25,410 $ 24,943 $ 24,233 $ 23,797 Total interest expense 1,958 2,065 2,299 2,515 2,166 NET INTERES
Slide 31: Non-GAAP Financial Measures
atlanticcapitalbank.com Non-GAAP Financial Measures (in thousands, except share and per share data) Second Quarter First Quarter Fourth Quarter Third Quarter Second Quarter Taxable equivalent net interest income reconciliation Net interest income - GAAP $ 25,660 $ 23,345 $ 22,644 $ 21,718 $ 21,631 T
Slide 32: Non-GAAP Financial Measures
atlanticcapitalbank.com Non-GAAP Financial Measures (in thousands, except share and per share data) Second Quarter First Quarter Fourth Quarter Third Quarter Second Quarter Allowance for credit losses to loans held for investment reconciliation Total loans held for investment $ 2,264,899 $ 2,300,814
Slide 33: Thank You
THANK YOU atlanticcapitalbank.com Member FDIC. Equal Housing Lender. @AtlanticCapital @AtlanticCapitalBank @Atlcapbank
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