Atlantic Capital Bancshares, Inc. Reports Fourth Quarter 2020 Results
Atlantic Capital Bancshares (NASDAQ: ACBI) reported a net income of $10.0 million for Q4 2020, up from $7.1 million in Q4 2019. Earnings per diluted share increased to $0.48 from $0.32 year-over-year. The bank experienced significant growth in loans and deposits, with loans up 21% annualized and deposits rising 65% annualized compared to Q3 2020. Non-performing assets decreased to 0.13% of total assets. The company aims for strong performance in 2021, underpinned by a solid balance sheet and business growth.
- Net income increased to $10.0 million in Q4 2020 from $7.1 million in Q4 2019.
- Earnings per diluted share rose to $0.48 from $0.32 year-over-year.
- Loans held for investment grew by $100.7 million, or 21% annualized, compared to Q3 2020.
- Average deposits increased by $402.2 million, or 65% annualized, from Q3 2020.
- Tangible book value per share improved to $15.62 from $15.11 in Q3 2020.
- Non-performing assets decreased to 0.13% of total assets from 0.20% in Q3 2020.
- Taxable equivalent net interest margin fell to 2.91% from 3.38% in Q4 2019.
- Loan yield decreased by 106 basis points year-over-year to 3.89%.
- Tangible common equity to tangible assets decreased to 8.9% from 11.0% in Q3 2020.
ATLANTA, Jan. 21, 2021 (GLOBE NEWSWIRE) -- Atlantic Capital Bancshares, Inc. (NASDAQ: ACBI) announced net income for the quarter ended December 31, 2020 of
“Atlantic Capital recorded another quarter of strong operating performance during the pandemic with double-digit percentage growth in loans, deposits, net interest income, and service charge income. While the course of economic recovery is uncertain, Atlantic Capital is well positioned with a fortress balance sheet and strong business development momentum for solid growth and strong performance in 2021,” remarked Douglas Williams, President and Chief Executive Officer.
Fourth Quarter Highlights(1)
- Loans held for investment excluding Paycheck Protection Program (“PPP”) loans increased
$100.7 million , or21% annualized, compared to the third quarter of 2020 and increased$183.4 million , or10% , compared to the fourth quarter of 2019. - Average deposits increased
$402.2 million , or65% annualized, compared to the third quarter of 2020 and increased$727.8 million , or34% , compared to the fourth quarter of 2019. - Cost of deposits decreased to
0.16% from0.19% in the third quarter of 2020 and0.90% in the fourth quarter of 2019. - Tangible book value per share increased to
$15.62 from$15.11 at September 30, 2020 and from$14.09 at December 31, 2019. - Annualized net charge-offs to average loans totaled
0.05% for the fourth quarter of 2020 and0.11% for the full year 2020. - Non-performing assets to total assets were
0.13% at December 31, 2020 compared to0.20% at September 30, 2020. - 823,000 shares repurchased in the fourth quarter of 2020 totaling
$11.5 million at an average price of$13.98 . As of December 31, 2020, approximately$7.3 million remained from the$25 million share repurchase program.
Income Statement
Taxable equivalent net interest income totaled
Taxable equivalent net interest margin was
The yield on loans in the fourth quarter of 2020 was
The cost of deposits in the fourth quarter of 2020 was
The provision for credit losses was
Noninterest income totaled
Noninterest expense totaled
The 2020 effective tax rate from continuing operations was
(1) Commentary is on a fully taxable-equivalent basis unless otherwise noted. Consistent with SEC guidance in Industry Guide 3 that contemplates the calculation of tax-exempt income on a tax equivalent basis, net interest income and net interest margin are provided on a fully taxable-equivalent basis, which generally assumes a
Balance Sheet
Total loans held for investment were
The allowance for credit losses was
Total average deposits were
Tangible common equity to tangible assets decreased to
Earnings Conference Call
Atlantic Capital will host a conference call at 1:00 p.m. EST on Friday, January 22, 2021, to discuss the financial results for the quarter ended December 31, 2020. Individuals wishing to participate in the conference call may do so by dialing 833-685-0902 from the United States. The call will also be available live via webcast on the Investor Relations page of our website, www.atlanticcapitalbank.com. A presentation will be used during the earnings conference call and is available at https://atlanticcapitalbank.q4ir.com/news-market-data/presentations/default.aspx.
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) taxable equivalent interest income; (ii) taxable equivalent net interest income; (iii) loan yield excluding PPP loans; (iv) taxable equivalent net interest margin; (v) taxable equivalent net interest margin excluding PPP loans; (vi) taxable equivalent income before income taxes; (vii) taxable equivalent income tax expense; (viii) tangible assets; (ix) tangible common equity; (x) tangible book value per common share, and (xi) allowance for credit losses to loans held for investment excluding PPP loans, in our analysis of the Company's performance. Tangible common equity excludes goodwill 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,” “strive,” 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, the impact of COVID-19 on operations, market growth, market and regulatory trends and developments, acquisitions and divestitures, new technologies, services and opportunities and earnings. The forward-looking statements are based largely on Atlantic Capital’s expectations and are subject to a number of known and unknown risks and uncertainties that are subject to change based on factors which are, in many instances, beyond Atlantic Capital’s control. Atlantic Capital undertakes no obligation to publicly update any forward-looking statement to reflect developments occurring after the statement is made, except as otherwise required by law. Actual results, performance or achievements could differ materially from those contemplated, expressed, or implied by the forward-looking statements as a result of, among other factors, the risks and uncertainties described in “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in Atlantic Capital’s Annual Report on Form 10-K, as supplemented by our Current Report on Form 8-K filed on April 23, 2020, and Quarterly Reports on Form 10-Q. Please refer to the SEC’s website at www.sec.gov where you can review those documents.
About Atlantic Capital Bancshares
Atlantic Capital Bancshares, Inc. is a
Media Contact:
Ashley Carson
Email: ashley.carson@atlcapbank.com
Phone: 404-995-6050
(ACB-ER)
Financial Contact:
Patrick Oakes
Email: patrick.oakes@atlcapbank.com
Phone: 404-995-6050
| ATLANTIC CAPITAL BANCSHARES, INC. | ||||||||||||||||||||||
| Selected Financial Information | ||||||||||||||||||||||
| For the year ended | ||||||||||||||||||||||
| 2020 | 2019 | December 31, | ||||||||||||||||||||
| (in thousands, except share and per share data; | Fourth | Third | Second | First | Fourth | |||||||||||||||||
| taxable equivalent) | Quarter | Quarter | Quarter | Quarter | Quarter | 2020 | 2019 | |||||||||||||||
| INCOME SUMMARY (1) | ||||||||||||||||||||||
| Interest income - taxable equivalent (2) | $ | 25,288 | $ | 24,578 | $ | 24,151 | $ | 26,246 | $ | 26,699 | $ | 100,474 | $ | 106,306 | ||||||||
| Interest expense | 2,299 | 2,515 | 2,166 | 5,043 | 5,965 | 12,023 | 24,983 | |||||||||||||||
| Net interest income - taxable equivalent | 22,989 | 22,063 | 21,985 | 21,203 | 20,734 | 88,451 | 81,323 | |||||||||||||||
| Provision for credit losses | 481 |
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FAQ
What were Atlantic Capital Bancshares' earnings for Q4 2020?
Atlantic Capital Bancshares reported a net income of $10.0 million for Q4 2020.
How did earnings per diluted share change for ACBI in Q4 2020?
Earnings per diluted share for ACBI increased to $0.48 in Q4 2020 from $0.32 in Q4 2019.
What was the growth in loans for Atlantic Capital in Q4 2020?
Loans held for investment increased by $100.7 million, or 21% annualized, compared to Q3 2020.
What changes occurred regarding deposits at ACBI in Q4 2020?
Average deposits rose by $402.2 million, or 65% annualized, compared to Q3 2020.
What is the current non-performing assets ratio for Atlantic Capital?
The non-performing assets ratio decreased to 0.13% of total assets as of December 31, 2020.
ACBI
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