Atlantic Capital Bancshares Inc
Atlantic Capital Bancshares — Q4 2021 Earnings Presentation
27 slides from Atlantic Capital Bancshares's earnings presentation, Jan 24, 2022
Slide 1: Investor Presentation Q4 2021
Proprietary & Confidential INVESTOR PRESENTATION | Q4 2021 a tlanticcapitalbank.com NASDAQ TICKER: ACBI
Slide 2: Forward-Looking Statements Disclaimer and Non-GAAP Financial Information
a tlanticcapitalbank.com Forward - Looking Statements Disclaimer and Non - GAAP Financial Information This presentation contains forward - looking statements within the meaning of section 27 A of the Securities Act of 1933 , as amended, and 21 E of the Securities Exchange Act of 1934 , as amended (t
Slide 3: Q4 2021 Highlights
a tlanticcapitalbank.com Q4 2021 Highlights Performance Highlights Credit Update 3 • Reported net income was $11.7 million or $0.57 per diluted share, this included $846,000 or $0.02 in merger related expenses. • Loans held for investment (excluding PPP loans) increased 22% annualized from Sept 30,
Slide 4: Financial Highlights
a tlanticcapitalbank.com Financial Highlights ( 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 of this non - GAAP
Slide 5: Commercial Lending Focus
Owner - occupied CRE 19% a tlanticcapitalbank.com Commercial Lending Focus $790 $944 $1,063 $1,134 $1,302 $605 $653 $686 $681 $775 $176 $198 $62 $80 $73 $65 $74 $192 $ 1,519 Loans from Continuing Operations Loan yield Commercial (1) CRE (2) Consumer Mortgage Warehouse 4.27% 5.01% 5.26% 3.89% 3.86% $
Slide 6: Strong Core Deposit Franchise
a tlanticcapitalbank.com Strong Core Deposit Franchise 32% 33% 33% 34% 40% 56% 61% 61% 58% 49% 1% 1% 1% 5% 9% 3% 3% 11% 5 % 5 % 5 % Average Deposits from Continuing Operations Dollars in millions. Deposit figures represent average balances .. Prior periods have been retrospectively adjusted for the
Slide 7: Atlanta's Hometown Business Bank
a tlanticcapitalbank.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. •
Slide 8: Rapidly Growing Fintech & Payments Businesses
a tlanticcapitalbank.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 •
Slide 9: Financial Update: Q4 2021 Income Summary
a tlanticcapitalbank.com Financial Update: Q4 2021 Income Summary Net interest income (1) 25,665 $ 25,145 $ 22,989 $ 12% Provision for credit losses (731) (2,405) 481 (252%) Noninterest income 4,555 4,609 3,016 51% Noninterest expense 15,963 15,018 13,164 21% Income before taxes 14,988 17,141 12,360
Slide 10: Net Interest Margin
a tlanticcapitalbank.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 in
Slide 11: Noninterest Expense Overview
a tlanticcapitalbank.com Noninterest Expense Overview Dollars in thousands (1) Continuing operations Noninterest Expense and Efficiency Ratio by Year (1) Noninterest Expense $52,834 $49,991 $53,108 $52,659 $61,327 70.4% 57.9% 58.0% 54.1% 53.2% 2017 2018 2019 2020 2021 Noninterest Expense and Efficie
Slide 12: Strong Credit Quality
a tlanticcapitalbank.com Strong 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% 0.06% 2014 2015 2016 2017 2018 2019 2020 2021 0.12% 0.40% 0.13% 0.14% 0.20% 0.26% 0.13% 0.11% Highlights Classified Loans / Total
Slide 13: Current Expected Credit Losses (CECL)
$17,681 $24,896 $31,605 $31,894 $31,818 $27,506 $26,123 $23,924 $22,186 0.94% 1.29% 1.62% 1.63% 1.55% 1.32% 1.21% 1.07% 0.94% 1.29% 1.45% 1.46% 1.41% 1.20% 1.15% 1.05% 0.94% Day 1 3/31/20 6/30/20 9/30/20 12/31/20 3/31/21 6/30/21 9/30/21 12/31/21 a tlanticcapitalbank.com Current Expected Credit Losse
Slide 14: Paycheck Protection Program (PPP) Update
a tlanticcapitalbank.com Paycheck Protection Program (PPP) Update Dollars in thousands • $395,000 in fees still to be recognized and 33 PPP loans outstanding as of December 31, 2021. • 73 PPP loans totaling $30 million forgiven during the fourth quarter. 14 Ending Balances and Total Yield Interest a
Slide 15: Appendix
Appendix
Slide 16: Management Biographies
a tlanticcapitalbank.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 17: Atlanta's Hometown Business Bank
a tlanticcapitalbank.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 18: Atlanta's Hometown Business Bank: Metro Highlights
a tlanticcapitalbank.com Atlanta’s Hometown Business Bank Atlanta metro highlights: • 16 Fortune 500 headquarters • 70% of all US payments are processed through Georgia • #4 metro for corporate headquarters • # 4 metro area for largest population growth (2010 - 2020) • #1 metro tech hub (growth pote
Slide 19: Investment Portfolio
a tlanticcapitalbank.com Investment Portfolio Portfolio Yield Tax - exempt Municipal 31% Taxable Municipal 11% MBS 50% Agency CMO 4% Corporate 3% CDs 1% Sector Allocation at 12/31 /2021 2.25% 2.48% 2.69% 2.88% 2.45% 2017 2018 2019 2020 2021 Municipal Bond Ratings 12/31/2021 AAA 43% AA+ 23% AA 30% AA
Slide 20: Loan Portfolio by Risk Rating
a tlanticcapitalbank.com Loan Portfolio by Risk Rating Pass Special Mention Substandard Doubtful Total Pass Special Mention Substandard Doubtful Total Commercial - commercial and industrial 843,720 $ 18,324 $ 17,703 $ 1,232 $ 880,979 $ 798,718 $ 18,648 $ 21,003 $ 372 $ 838,741 $ Commercial - commerc
Slide 21: Balance Sheet
a tlanticcapitalbank.com Balance Sheet (in thousands, except share data) Dec. 31, Sept. 30, Dec. 31, 2021 2021 2020 ASSETS Cash and due from banks $ 16,214 $ 25,725 $ 16,865 Interest-bearing deposits in banks 377,780 811,168 636,537 Other short-term investments 137,181 140,848 – Cash and cash equiva
Slide 22: Period End Loans
a tlanticcapitalbank.com Period End Loans (dollars in thousands) December 31, 2021 September 30, 2021 June 30, 2021 March 31, 2021 December 31, 2020 Loans held for sale Loans held for sale $ 2,087 $ 11,814 $ - $ 1,847 $ - $ (9,727) $ 2,087 Loans held for sale - discontinued operations - - - - - - -
Slide 23: Deposits: Period End and Average
a tlanticcapitalbank.com Deposits: Period End and Average Period End Deposits (dollars in thousands) December 31, 2021 September 30, 2021 June 30, 2021 March 31, 2021 December 31, 2020 Linked Quarter Change Year Over Year Change DDA $ 1,471,920 $ 1,691,616 $ 1,374,018 $ 1,280,524 $ 1,033,765 $ (219,
Slide 24: Income Statements
a tlanticcapitalbank.com Income Statements (in thousands except share and per share data) December 31, 2021 September 30, 2021 June 30, 2021 March 31, 2021 December 31, 2020 December 31, 2021 December 31, 2020 Total interest income $ 26,930 $ 26,664 $ 27,618 $ 25,410 $ 24,943 $ 106,622 $ 98,996 Tota
Slide 25: Non-GAAP Financial Measures
a tlanticcapitalbank.com Non - GAAP Financial Measures (in thousands, except share and per share data) Fourth Quarter Third Quarter Second Quarter First Quarter Fourth Quarter Taxable equivalent net interest income reconciliation Net interest income - GAAP $ 25,272 $ 24,769 $ 25,660 $ 23,345 $ 22,64
Slide 26: Non-GAAP Financial Measures
a tlanticcapitalbank.com Non - GAAP Financial Measures (in thousands, except share and per share data) 2020 Fourth Quarter Third Quarter Second Quarter First Quarter Fourth Quarter 2021 2020 Allowance for credit losses to loans held for investment reconciliation Total loans held for investment $ 2,3
Slide 27: Thank You
THANK YOU a tlanticcapitalbank.com Member FDIC. Equal Housing Lender. @ AtlanticCapital @ AtlanticCapitalBank @ Atlcapbank
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