GlobeNewswire Inc | Jan 21, 2021 04:10PM EST

January 21, 2021

ATLANTA, Jan. 21, 2021 (GLOBE NEWSWIRE) -- Atlantic Capital Bancshares, Inc. (NASDAQ: ACBI) announced net income for the quarter ended December 31, 2020 of $10.0 million, or $0.48 per diluted share, compared to $7.1 million, or $0.32 per diluted share, for the fourth quarter of 2019 and $8.6 million, or $0.40 per diluted share, for the third quarter of 2020.

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, or 21% annualized, compared to the third quarter of 2020 and increased $183.4 million, or 10%, compared to the fourth quarter of 2019. -- Average deposits increased $402.2 million, or 65% annualized, compared to the third quarter of 2020 and increased $727.8 million, or 34%, compared to the fourth quarter of 2019. -- Cost of deposits decreased to 0.16% from 0.19% in the third quarter of 2020 and 0.90% 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 and 0.11% for the full year 2020. -- Non-performing assets to total assets were 0.13% at December 31, 2020 compared to 0.20% 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 $23.0 million for the fourth quarter of 2020, an increase of $2.3 million, or 11%, from the fourth quarter of 2019, and an increase of $926,000, or 17% annualized, from the third quarter of 2020. The fourth quarter of 2020 included $2.3 million in PPP loan income compared to $1.6 million in the third quarter of 2020.

Taxable equivalent net interest margin was 2.91% in the fourth quarter of 2020, compared to 3.38% in the fourth quarter of 2019 and 3.14% in the third quarter of 2020. The linked quarter decrease was primarily the result of the increase in deposits and corresponding increase in cash balances. The taxable equivalent net interest margin, excluding PPP loans, in the fourth quarter of 2020 was 2.81% compared to 3.18% in the third quarter of 2020.

The yield on loans in the fourth quarter of 2020 was 3.89%, a decrease of 106 basis points from the fourth quarter of 2019 and an increase of 7 basis points from the third quarter of 2020. Excluding the PPP loans, the fourth quarter of 2020 loan yield was 3.86% compared to 3.95% in the third quarter of 2020.

The cost of deposits in the fourth quarter of 2020 was 0.16%, a decrease of 74 basis points from the fourth quarter of 2019 and a decrease of 3 basis points from the third quarter of 2020. The cost of interest bearing deposits decreased 111 basis points to 0.25% from the fourth quarter of 2019, and decreased 3 basis points from the third quarter of 2020.

The provision for credit losses was $481,000 in the fourth quarter of 2020 compared to $787,000 in the fourth quarter of 2019 and $28,000 in the third quarter of 2020. The fourth quarter of 2020 provision for credit losses included a $225,000 provision for loan losses and a $257,000 provision for unfunded commitments. The higher provision for unfunded commitments in the fourth quarter of 2020 was driven by an increase in the level of unfunded commitments.

Noninterest income totaled $3.0 million in the fourth quarter of 2020 compared to $2.7 million in the fourth quarter of 2019 and $2.5 million in the third quarter of 2020. Service charge income in the fourth quarter of 2020 totaled $1.3 million, an increase of $343,000 compared to the fourth quarter of 2019, and an increase of $124,000 from the third quarter of 2020. The increase in service charge income was primarily due to growth in our payments and fintech businesses along with solid growth in our core treasury management business. SBA income totaled $1.0 million, an increase from $893,000 in the third quarter of 2020, primarily from higher SBA origination volume.

Noninterest expense totaled $13.2 million in the fourth quarter of 2020, compared to $13.4 million in the fourth quarter of 2019 and $13.7 million in the third quarter of 2020. The $413,000 linked quarter decrease in salaries and benefits was primarily driven by an increase in loan production salary cost deferrals due to higher loan originations during the fourth quarter and a decrease in incentive compensation. In addition, other noninterest expense decreased in the fourth quarter of 2020 primarily from the recovery of $290,000 of the $470,000 in losses on customer accounts incurred during the third quarter of 2020.

The 2020 effective tax rate from continuing operations was 17.0% compared to 21.3% for the full year of 2019, and was impacted by lower pretax earnings as well as increased non-taxable securities income from municipal bonds.

(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 21% marginal tax rate. We provide detailed reconciliations in the Non-GAAP Performance and Financial Measures Reconciliation table on page 13.

Balance Sheet

Total loans held for investment were $2.25 billion at December 31, 2020, an increase of $375.5 million, or 20.0%, from December 31, 2019 and an increase of $61.0 million, or 11% annualized, from September 30, 2020. PPP loans totaled $192.2 million at December 31, 2020, a decrease of $40.0 million compared to September 30, 2020, due to the forgiveness of PPP loans during the fourth quarter. In addition to the strong funded loan growth across most of our lines of business, total unfunded commitments increased $50.0 million, on a linked quarter basis, primarily due to strong growth in our commercial real estate business.

The allowance for credit losses was 1.55% of total loans held for investment at December 31, 2020, compared to 1.59% at September 30, 2020. Excluding the impact of PPP loans, the allowance for credit losses at December 31, 2020 was 1.70% compared to 1.78% at September 30, 2020. Annualized net charge-offs were 0.05% for the fourth quarter of 2020 and 0.11% for the full year 2020. Non-performing assets totaled $4.9 million, or 0.13% of total assets, as of December 31, 2020, compared to $6.0 million, or 0.20% of total assets, as of September 30, 2020.

Total average deposits were $2.87 billion for the fourth quarter of 2020, an increase of $727.8 million, or 33.9%, from the fourth quarter of 2019 and an increase of $402.2 million, or 65.1% annualized, from the third quarter of 2020. In addition to typical seasonal increases in fourth quarter deposits, we continued to see strong growth in core deposits across most of our lines of business. Noninterest bearing deposits were 34.0% of total average deposits in the fourth quarter of 2020, compared to 33.5% in the fourth quarter of 2019 and 34.6% in the third quarter of 2020.

Tangible common equity to tangible assets decreased to 8.9% at December 31, 2020, compared to 11.0% at September 30, 2020, due to the impact from the fourth quarter growth in deposits and its corresponding increase on the size of the year-end balance. Cash and cash equivalents were $653.4 million and total assets were $3.62 billion at December 31, 2020 compared to cash and cash equivalents of $114.0 million and total assets of $2.92 billion at September 30, 2020.

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 Capitals 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 Capitals 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 Capitals 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 Capitals 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 Managements Discussion and Analysis of Financial Condition and Results of Operations in Atlantic Capitals 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 SECs website at www.sec.gov where you can review those documents.

About Atlantic Capital Bancshares

Atlantic Capital Bancshares, Inc. is a $3.6 billion publicly traded bank holding company headquartered in Atlanta, Georgia. Atlantic Capital offers commercial and not-for-profit banking services, specialty corporate financial services, private banking services and commercial real estate finance solutions to privately held companies and individuals in the Atlanta area, as well as payments and other specialized financial services for select clients nationally.

Media Contact:Ashley CarsonEmail: ashley.carson@atlcapbank.comPhone: 404-995-6050(ACB-ER)

Financial Contact:Patrick OakesEmail: patrick.oakes@atlcapbank.comPhone: 404-995-6050

ATLANTIC CAPITAL BANCSHARES, INC.Selected Financial Information For the year ended 2020 2019 December31, (in thousands,except share Fourth Third Second First Fourth and per sharedata;taxable Quarter Quarter Quarter Quarter Quarter 2020 2019 equivalent)INCOME SUMMARY ^(1)Interest income- taxable $ 25,288 $ 24,578 $ 24,151 $ 26,246 $ 26,699 $ 100,474 $ 106,306 equivalent ^(2)Interest 2,299 2,515 2,166 5,043 5,965 12,023 24,983 expenseNet interestincome - 22,989 22,063 21,985 21,203 20,734 88,451 81,323 taxableequivalentProvision for 481 28 8,863 8,074 787 17,446 2,712 credit lossesNet interestincome after 22,508 22,035 13,122 13,129 19,947 71,005 78,611 provision forcredit lossesNoninterest 3,016 2,504 2,343 2,422 2,679 10,285 10,725 incomeNoninterest 13,164 13,713 12,904 12,877 13,382 52,659 53,108 expenseIncome fromcontinuingoperations 12,360 10,826 2,561 2,674 9,244 28,631 36,228 before incometaxesIncome tax 2,410 2,208 712 550 2,104 6,091 8,070 expenseNet income fromcontinuing 9,950 8,618 1,849 2,124 7,140 22,540 28,158 operations^(2)(3)Income fromdiscontinued ? ? ? ? ? ? 21,697 operations, netof taxNet income $ 9,950 $ 8,618 $ 1,849 $ 2,124 $ 7,140 $ 22,540 $ 49,855 PER SHARE DATA Dilutedearnings pershare - $ 0.48 $ 0.40 $ 0.09 $ 0.10 $ 0.32 $ 1.05 $ 1.20 continuingoperationsDilutedearnings pershare - ? ? ? ? ? ? 0.92 discontinuedoperationsDilutedearnings per 0.48 0.40 0.09 0.10 0.32 1.05 2.12 shareBook value per 16.60 16.05 15.64 15.47 15.01 16.60 15.01 shareTangible bookvalue per 15.62 15.11 14.72 14.54 14.09 15.62 14.09 common share ^(3) PERFORMANCE MEASURESReturn on 11.68 % 10.05 % 2.20 % 2.56 % 8.65 % 6.67 % 15.10 %average equityReturn on 1.19 1.15 0.25 0.32 1.08 0.76 1.93 average assetsTaxableequivalent netinterest margin 2.91 3.14 3.23 3.41 3.38 3.16 3.58 - continuingoperationsTaxableequivalent netinterest margin 2.81 3.18 3.35 3.41 3.38 3.18 3.58 excluding PPPloansEfficiencyratio - 51.30 56.61 53.82 55.03 57.57 54.14 57.99 continuingoperationsAverage loansto average 76.81 88.65 88.46 83.84 86.54 84.11 98.02 depositsCAPITAL Average equityto average 10.18 % 11.45 % 11.53 % 12.41 % 12.47 % 11.33 % 12.77 %assetsTangible commonequity to 8.86 11.03 11.01 11.57 10.61 8.86 10.61 tangible assetsLeverage ratio 8.9 ^ 9.9 9.9 10.7 11.0 8.9 ^ 11.0 (4) (4)Total risk ^ ^based capital 16.1 (4) 16.9 14.8 14.9 15.0 16.1 (4) 15.0 ratio SHARES OUTSTANDINGNumber ofcommon shares 20,394,912 21,202,783 21,477,631 21,479,986 21,751,026 20,394,912 21,751,026 outstanding -basicNumber ofcommon shares 20,492,542 21,298,098 21,569,050 21,675,934 21,974,959 20,492,542 21,974,959 outstanding -dilutedAverage numberof common 20,711,089 21,500,735 21,472,462 21,689,038 21,876,487 21,342,086 23,315,562 shares - basicAverage numberof common 20,795,332 21,543,805 21,535,040 21,842,175 22,053,907 21,427,722 23,478,001 shares -diluted ASSET QUALITY Allowance forcredit losses 1.55 % 1.59 % 1.61 % 1.43 % 1.04 % 1.55 % 0.99 %to loans heldfor investmentNet charge-offsto average 0.05 0.06 0.29 0.04 0.07 0.11 0.11 loans ^(5)Non-performingassets to total 0.13 0.20 0.24 0.27 0.26 0.13 0.26 assets AVERAGE BALANCESTotal loans -continuing $ 2,207,956 $ 2,191,669 $ 2,131,847 $ 1,890,184 $ 1,857,736 $ 2,105,930 $ 1,769,613 operationsInvestment 491,134 453,382 462,850 417,971 389,667 456,422 372,556 securitiesTotal assets 3,328,719 2,977,444 2,932,716 2,686,266 2,626,388 2,982,222 2,586,428 Deposits -continuing 2,874,402 2,472,218 2,409,958 2,254,505 2,146,626 2,503,703 1,805,300 operationsShareholders' 338,948 341,017 338,027 333,480 327,543 337,879 330,216 equity AT PERIOD END Loans and loans $ 2,249,036 $ 2,188,894 $ 2,185,847 $ 1,932,909 $ 1,873,524 $ 2,249,036 $ 1,873,894 held for saleInvestment 535,579 446,706 457,749 466,405 399,433 535,579 399,433 securitiesTotal assets 3,615,617 2,923,977 2,890,622 2,719,658 2,910,379 3,615,617 2,910,379 Deposits 3,161,508 2,468,722 2,407,631 2,225,119 2,499,046 3,161,508 2,499,046 Shareholders? 338,586 340,309 335,980 332,300 326,495 338,586 326,495 equity ^(1)On April 5, 2019, Atlantic Capital completed the sale to FirstBank of itsTennessee and northwest Georgia banking operations, including 14 branches andthe mortgage business. The mortgage business and branches soldto FirstBank arereported as discontinued operations.^(2)Interest income on tax-exempt securities has been increased to reflectcomparable interest on taxable securities. The rate used was 21%, reflectingthe statutory federal income tax rate.^(3)Excludes effect of acquisition related intangibles. ^(4)Amounts are estimates as of December 31, 2020. ^(5)Annualized.

ATLANTIC CAPITAL BANCSHARES, INC.Consolidated Balance Sheets (unaudited) December31, September30, December31,(in thousands, except share 2020 2020 2019data)ASSETS Cash and due from banks $ 16,865 $ 22,715 $ 45,249 Interest-bearing deposits in 636,537 91,243 421,079 banksCash and cash equivalents 653,402 113,958 466,328 Investment securities 335,423 260,884 282,461 available for saleInvestment securities held tomaturity, net of allowance forcredit losses of $14 and $15 200,156 185,822 116,972 at December 31, 2020 andSeptember 30, 2020,respectivelyOther investments 25,892 26,315 27,556 Loans held for sale ? 859 370 Loans held for investment 2,249,036 2,188,035 1,873,524 Less: allowance for loan (31,818 ) (31,894 ) (18,535 )lossesLoans held for investment, net 2,217,218 2,156,141 1,854,989 Premises and equipment, net 21,589 22,558 22,536 Bank owned life insurance 72,856 67,489 66,421 Goodwill 19,925 19,925 19,925 Other intangibles, net 2,731 2,685 3,027 Other real estate owned 16 563 278 Other assets 66,409 66,778 49,516 Total assets $ 3,615,617 $ 2,923,977 $ 2,910,379 LIABILITIES AND SHAREHOLDERS? EQUITYDeposits: Noninterest-bearing demand $ 1,033,765 $ 843,656 $ 824,646 Interest-bearing checking 760,638 387,858 373,727 Savings 625 568 1,219 Money market 1,030,753 945,834 1,173,218 Time 241,328 196,343 44,389 Brokered deposits 94,399 94,463 81,847 Total deposits 3,161,508 2,468,722 2,499,046 Long-term debt 73,807 73,814 49,873 Other liabilities 41,716 41,132 34,965 Total liabilities 3,277,031 2,583,668 2,583,884 SHAREHOLDERS? EQUITY Preferred stock, no par value;10,000,000 shares authorized;no shares issued andoutstanding as of ? ? ? December31,2020,September30,2020 andDecember31,2019Common stock, no par value;100,000,000 shares authorized;20,394,912, 21,202,783, and21,751,026 shares issued andoutstanding as of 209,942 220,643 230,265 December31,2020,September30,2020 andDecember31,2019,respectivelyRetained earnings 114,137 104,188 91,669 Accumulated other 14,507 15,478 4,561 comprehensive incomeTotal shareholders? equity 338,586 340,309 326,495 TOTAL LIABILITIES AND $ 3,615,617 $ 2,923,977 $ 2,910,379 SHAREHOLDERS? EQUITY

ATLANTIC CAPITAL BANCSHARES, INC.Consolidated Statements of Income (unaudited) (in thousands,except share and Three months ended Year endedper share data) December31, September30, June30, March31, December31, December31, December31, 2020 2020 2020 2020 2019 2020 2019INTEREST INCOME Loans, including $ 21,609 $ 21,049 $ 20,496 $ 22,426 $ 23,175 $ 85,580 $ 93,022 feesInvestment 3,000 2,910 3,041 2,732 2,413 11,683 9,559 securitiesInterest anddividends onother 334 274 260 865 944 1,733 3,266 interest?earningassetsTotal interest 24,943 24,233 23,797 26,023 26,532 98,996 105,847 incomeINTEREST EXPENSE Interest on 1,188 1,151 1,299 4,182 4,890 7,820 20,392 depositsInterest onFederal Home ? 16 38 ? 157 54 817 Loan BankadvancesInterest onfederal fundspurchased and ? 3 6 32 94 41 479 securities soldunder agreementsto repurchaseInterest on 1,111 1,345 823 829 824 4,108 3,295 long-term debtTotal interest 2,299 2,515 2,166 5,043 5,965 12,023 24,983 expenseNET INTERESTINCOME BEFORE 22,644 21,718 21,631 20,980 20,567 86,973 80,864 PROVISION FORCREDIT LOSSESProvision for 481 28 8,863 8,074 787 17,446 2,712 credit lossesNET INTERESTINCOME AFTER 22,163 21,690 12,768 12,906 19,780 69,527 78,152 PROVISION FORCREDIT LOSSESNONINTEREST INCOMEService charges 1,341 1,217 1,081 1,232 998 4,871 3,587 (Losses) gainson sale of (23 ) ? ? ? ? (23 ) 907 securities(Losses) gainson sale of other (6 ) (145 ) ? 5 ? (146 ) 127 assetsDerivatives 11 10 (10 ) 246 315 257 (322 )income (loss)Bank owned life 368 363 367 362 375 1,460 1,546 insuranceSBA lending 1,015 893 782 414 846 3,104 4,178 activitiesOthernoninterest 310 166 123 163 145 762 702 incomeTotalnoninterest 3,016 2,504 2,343 2,422 2,679 10,285 10,725 incomeNONINTEREST EXPENSESalaries andemployee 8,437 8,850 8,466 8,476 8,500 34,229 34,537 benefitsOccupancy 767 739 883 794 838 3,183 2,888 Equipment and 969 826 763 779 769 3,337 3,103 softwareProfessional 686 562 792 705 577 2,745 2,908 servicesCommunicationsand data 789 757 670 897 1,066 3,113 3,199 processingMarketing andbusiness 144 141 79 153 143 517 845 developmentTravel, mealsand 14 39 34 140 175 227 679 entertainmentFDIC premiums 241 213 175 ? ? 629 217 Othernoninterest 1,117 1,586 1,042 933 1,314 4,679 4,732 expenseTotalnoninterest 13,164 13,713 12,904 12,877 13,382 52,659 53,108 expense INCOME FROMCONTINUINGOPERATIONS 12,015 10,481 2,207 2,451 9,077 27,153 35,769 BEFORE PROVISIONFOR INCOME TAXESProvision for 2,065 1,863 358 327 1,937 4,613 7,611 income taxesNET INCOME FROMCONTINUING 9,950 8,618 1,849 2,124 7,140 22,540 28,158 OPERATIONSDISCONTINUED OPERATIONSIncome fromdiscontinued $ ? $ ? $ ? $ ? $ ? $ ? $ 28,690 operationsProvision for ? ? ? ? ? ? 6,993 income taxesNet income fromdiscontinued ? ? ? ? ? ? 21,697 operationsNET INCOME $ 9,950 $ 8,618 $ 1,849 $ 2,124 $ 7,140 $ 22,540 $ 49,855 Net Income perCommon Share - BasicNet income percommon share - $ 0.48 $ 0.40 $ 0.09 $ 0.10 $ 0.33 $ 1.06 $ 1.21 continuingoperationsNet income percommon share - ? ? ? ? ? ? 0.93 discontinuedoperationsNet Income perCommon Share - 0.48 0.40 0.09 0.10 0.33 1.06 2.14 BasicNet Income perCommon Share - DilutedNet income percommon share - $ 0.48 $ 0.40 $ 0.09 $ 0.10 $ 0.32 $ 1.05 $ 1.20 continuingoperationsNet income percommon share - ? ? ? ? ? ? 0.92 discontinuedoperationsNet Income perCommon Share - 0.48 0.40 0.09 0.10 0.32 1.05 2.12 Diluted Weighted average 20,711,089 21,500,735 21,472,462 21,689,038 21,876,487 21,342,086 23,315,562 shares - basicWeighted average 20,795,332 21,543,805 21,535,040 21,842,175 22,053,907 21,427,722 23,478,001 shares - diluted

ATLANTIC CAPITAL BANCSHARES, INC.Average Balance Sheets and Net Interest Margin AnalysisSelected Financial Information Three months ended December31,2020 September30,2020 Interest Tax Interest Tax Average Income/ Equivalent Average Income/ Equivalent (dollars inthousands; Balance Expense Yield/Rate Balance Expense Yield/Rate taxableequivalent)Assets Interest bearingdeposits in $ 435,939 $ 141 0.13 % $ 136,459 $ 65 0.19 %other banksInvestment securities:Taxableinvestment 275,872 1,587 2.29 237,655 1,467 2.46 securitiesNon-taxableinvestment 215,262 1,758 3.25 215,727 1,788 3.30 securities ^(1)Total investment 491,134 3,345 2.71 453,382 3,255 2.86 securitiesLoans 2,207,956 21,609 3.89 2,191,669 21,049 3.82 FHLB and FRB 12,699 193 6.05 14,484 209 5.74 stockTotalinterest-earning 3,147,728 25,288 3.20 2,795,994 24,578 3.50 assetsNon-earning 180,991 181,450 assetsTotal assets $ 3,328,719 $ 2,977,444 Liabilities Interest bearing deposits:NOW, moneymarket, and 1,585,928 1,043 0.26 1,383,382 1,006 0.29 savingsTime deposits 221,792 72 0.13 166,019 86 0.21 Brokered 89,673 73 0.32 68,102 59 0.34 depositsTotalinterest-bearing 1,897,393 1,188 0.25 1,617,503 1,151 0.28 depositsTotal borrowings ? ? ? 40,793 19 0.19 Total long-term 73,811 1,111 5.99 82,708 1,345 6.47 debtTotalinterest-bearing 1,971,204 2,299 0.46 1,741,004 2,515 0.57 liabilitiesDemand deposits 977,009 854,715 Other 41,558 40,708 liabilitiesShareholders? 338,948 341,017 equityTotalliabilities and $ 3,328,719 $ 2,977,444 shareholders?equityNet interest 2.73 % 2.92 %spreadNet interestincome and net $ 22,989 2.91 % $ 22,063 3.14 %interest margin^(2) Non-taxableequivalent net 2.86 % 3.09 %interest margin

^(1) Interest revenue on tax-exempt securities has been increased to reflectcomparable interest on taxable securities. The rate used was 21%, reflectingthe statutory federal income tax rate.^(2) Tax equivalent net interest income divided by total interest-earningassets using the appropriate day count convention based on the type ofinterest-earning asset.

Three months ended December31,2020 December31,2019 Interest Tax Interest Tax Average Income/ Equivalent Average Income/ Equivalent (dollars inthousands; Balance Expense Yield/Rate Balance Expense Yield/Rate taxableequivalent)Assets Interest bearingdeposits in $ 435,939 $ 141 0.13 % $ 174,589 $ 733 1.67 %other banksInvestment securities:Taxableinvestment 275,872 1,587 2.29 242,175 1,570 2.57 securitiesNon-taxableinvestment 215,262 1,758 3.25 147,492 1,010 2.72 securities ^(1)Total investment 491,134 3,345 2.71 389,667 2,580 2.63 securitiesLoans 2,207,956 21,609 3.89 1,857,736 23,175 4.95 FHLB and FRB 12,699 193 6.05 14,106 211 5.93 stockTotalinterest-earning 3,147,728 25,288 3.20 2,436,098 26,699 4.35 assetsNon-earning 180,991 190,290 assetsTotal assets $ 3,328,719 $ 2,626,388 Liabilities Interest bearing deposits:NOW, moneymarket, and 1,585,928 1,043 0.26 1,328,184 4,525 1.35 savingsTime deposits 221,792 72 0.13 37,388 52 0.55 Brokered 89,673 73 0.32 62,757 313 1.98 depositsTotalinterest-bearing 1,897,393 1,188 0.25 1,428,329 4,890 1.36 depositsTotal borrowings ? ? ? 54,706 252 1.83 Total long-term 73,811 1,111 5.99 49,845 823 6.55 debtTotalinterest-bearing 1,971,204 2,299 0.46 1,532,880 5,965 1.54 liabilitiesDemand deposits 977,009 718,297 Other 41,558 47,668 liabilitiesShareholders? 338,948 327,543 equityTotalliabilities and $ 3,328,719 $ 2,626,388 shareholders?equityNet interest 2.73 % 2.80 %spreadNet interestincome and net $ 22,989 2.91 % $ 20,734 3.38 %interest margin^(2) Non-taxableequivalent net 2.86 % 3.35 %interest margin

^(1) Interest revenue on tax-exempt securities has been increased to reflectcomparable interest on taxable securities. The rate used was 21%, reflectingthe statutory federal income tax rate.^(2) Tax equivalent net interest income divided by total interest-earningassets using the appropriate day count convention based on the type ofinterest-earning asset. ATLANTIC CAPITAL BANCSHARES, INC. Average Balance Sheets and Net Interest Margin Analysis Selected Financial Information Year ended December31,2020 December31,2019 Interest Tax Interest Tax Average Income/ Equivalent Average Income/ Equivalent (dollars inthousands; Balance Expense Yield/Rate Balance Expense Yield/Rate taxableequivalent)Assets Interest bearingdeposits in $ 220,225 $ 897 0.41 % $ 110,543 $ 2,209 2.00 %other banksOther short-term 27 ? ? 3,875 118 3.05 investmentsInvestment securities:Taxableinvestment 253,799 6,316 2.49 274,189 7,188 2.62 securitiesNon-taxableinvestment 202,623 6,845 3.38 98,367 2,830 2.88 securities ^(1)Total investment 456,422 13,161 2.88 372,556 10,018 2.69 securitiesLoans-continuing 2,105,930 85,580 4.06 1,769,613 93,022 5.26 operationsFHLB and FRB 14,172 836 5.90 14,156 939 6.63 stockTotalinterest-earningassets- 2,796,776 100,474 3.59 2,270,743 106,306 4.68 continuingoperationsLoans held forsale- ? ? ? 116,725 4,588 3.93 discontinuedoperationsTotalinterest-earning 2,796,776 100,474 3.59 2,387,468 110,894 4.64 assetsNon-earning 185,446 198,960 assetsTotal assets $ 2,982,222 $ 2,586,428 Liabilities Interest bearing deposits:NOW, moneymarket, and 1,444,699 6,931 0.48 1,107,765 18,155 1.64 savingsTime deposits 135,309 269 0.20 23,072 191 0.83 Brokered 83,274 620 0.74 84,601 2,046 2.42 depositsTotalinterest-bearing 1,663,282 7,820 0.47 1,215,438 20,392 1.68 depositsTotal borrowings 37,473 95 0.25 54,931 1,297 2.36 Total long-term 64,162 4,108 6.40 49,782 3,294 6.62 debtTotalinterest-bearingliabilities- 1,764,917 12,023 0.68 1,320,151 24,983 1.89 continuingoperationsInterest-bearingliabilities- ? ? ? 144,064 1,502 1.04 discontinuedoperationsTotalinterest-bearing 1,764,917 12,023 0.68 1,464,215 26,485 1.81 liabilitiesDemand deposits 840,421 589,862 Demanddeposits- ? 39,253 discontinuedoperationsOther 39,005 162,882 liabilitiesShareholders? 337,879 330,216 equityTotalliabilities and $ 2,982,222 $ 2,586,428 shareholders?equityNet interestspread- 2.91 % 2.79 %continuingoperationsNet interestincome and netinterest margin- $ 88,451 3.16 % $ 81,323 3.58 %continuingoperations ^(2)Net interestincome and net $ 88,451 3.16 % $ 84,409 3.54 %interest margin^(2) Non-taxableequivalent net 3.11 % 3.52 %interest margin

^(1) Interest revenue on tax-exempt securities has been increased to reflectcomparable interest on taxable securities. The rate used was 21%, reflectingthe statutory federal income tax rate.^(2) Tax equivalent net interest income divided by total interest-earningassets using the appropriate day count convention based on the type ofinterest-earning asset.

ATLANTIC CAPITAL BANCSHARES, INC. Period End Loans Linked YearOver December31, September30, June30, March31, December31, Quarter Year(dollars in 2020 2020 2020 2020 2019 Change Changethousands)Loans held for saleLoans held $ ? $ 859 $ 1,153 $ ? $ 370 $ (859 ) $ (370 )for saleTotal loans $ ? $ 859 $ 1,153 $ ? $ 370 $ (859 ) $ (370 )held for sale Loans heldfor investmentCommercial loans:Commercialand $ 760,645 $ 712,567 $ 739,769 $ 760,062 $ 705,115 $ 48,078 $ 55,530 industrial -otherCommercialand 192,160 231,834 234,049 ? ? (39,674 ) 192,160 industrial -PPPCommercial real estate:Multifamily 66,262 58,336 58,909 73,654 98,378 7,926 (32,116 )Owner 373,689 364,170 366,847 359,026 357,912 9,519 15,777 occupiedInvestment 469,150 458,279 474,565 477,451 460,038 10,871 9,112 Construction and land:1?4 familyresidential 1,171 ? 11 2,706 4,009 1,171 (2,838 )constructionOtherconstruction, 144,424 139,836 128,980 124,116 123,531 4,588 20,893 development,and landMortgagewarehouse ? ? ? ? 13,941 ? (13,941 )loansTotalcommercial 2,007,501 1,965,022 2,003,130 1,797,015 1,762,924 42,479 244,577 loans Residential: Residential 33,783 29,460 32,327 31,761 31,315 4,323 2,468 mortgagesHome equity 25,443 24,528 23,689 23,479 25,002 915 441 Totalresidential 59,226 53,988 56,016 55,240 56,317 5,238 2,909 loans Consumer 176,066 154,916 113,149 58,164 37,765 21,150 138,301 Other 13,897 22,777 22,160 25,488 19,552 (8,880 ) (5,655 ) 2,256,690 2,196,703 2,194,455 1,935,907 1,876,558 59,987 380,132 Less netdeferred feesand other (7,654 ) (8,668 ) (9,761 ) (2,998 ) (3,034 ) 1,014 (4,620 )unearnedincomeTotal loansheld for $ 2,249,036 $ 2,188,035 $ 2,184,694 $ 1,932,909 $ 1,873,524 $ 61,001 $ 375,512 investment Total loans $ 2,249,036 $ 2,188,894 $ 2,185,847 $ 1,932,909 $ 1,873,894 $ 60,142 $ 375,142 Totalunfunded $ 813,757 $ 764,247 $ 749,321 $ 689,620 $ 743,958 $ 49,510 $ 69,799 commitments

ATLANTIC CAPITAL BANCSHARES, INC.Allowance for Credit Losses Activity and Credit Quality 2020 2019 Fourth Third Second First Fourth(dollars in Quarter Quarter Quarter Quarter Quarterthousands)Allowance for loan lossesBalance atbeginning of $ 31,894 $ 31,605 $ 24,896 $ 18,535 $ 18,080 periodAdoption of ? ? ? (854 ) ? ASU 2016-13Provision for 225 636 8,222 7,409 787 loan lossesLoans charged-off:Commercial and (401 ) (404 ) (1,479 ) (18 ) (344 )industrialCommercial ? ? ? (78 ) ? real estateConstruction ? ? ? ? ? and landResidential ? ? (36 ) ? ? mortgagesHome equity ? ? ? (125 ) ? Consumer ? ? ? ? ? Other ? ? ? ? ? Total loans (401 ) (404 ) (1,515 ) (221 ) (344 )charged-offRecoveries onloans previouslycharged-off:Commercial and 37 56 1 ? 5 industrialCommercial 44 ? ? 18 ? real estateConstruction 18 ? ? ? ? and landResidential ? ? ? 1 7 mortgagesHome equity ? ? ? ? ? Consumer 1 1 1 8 ? Other ? ? ? ? ? Total 100 57 2 27 12 recoveriesNet $ (301 ) $ (347 ) $ (1,513 ) $ (194 ) $ (332 )charge-offsBalance at $ 31,818 $ 31,894 $ 31,605 $ 24,896 $ 18,535 period end Allowance forunfunded commitmentsBalance atbeginning of $ 2,871 $ 3,480 $ 2,838 $ 892 $ 836 periodAdoption of ? ? ? 1,275 ? ASU 2016-13Provision forunfunded 257 (609 ) 642 671 56 commitmentsBalance at $ 3,128 $ 2,871 $ 3,480 $ 2,838 $ 892 period end Totalallowance forcredit losses $ 34,946 $ 34,765 $ 35,085 $ 27,734 $ 19,427 - loans andunfundedcommitments Provision forcredit losses under CECLProvision for 225 636 8,222 7,409 787 loan lossesProvision forsecuritiesheld to (1 ) 1 (1 ) (6 ) ? maturitycredit lossesProvision forunfunded 257 (609 ) 642 671 ? commitments^(1)Totalprovision for $ 481 $ 28 $ 8,863 $ 8,074 $ 787 credit losses Non-performing $ 4,862 $ 5,421 $ 6,265 $ 6,515 $ 7,293 loansForeclosedproperties 16 563 779 779 278 (OREO)Totalnonperforming $ 4,878 $ 5,984 $ 7,044 $ 7,294 $ 7,571 assets Allowance forloan losses to 1.41 % 1.46 % 1.45 % 1.29 % 0.99 %loans held forinvestmentAllowance forcredit losses 1.55 % 1.59 % 1.61 % 1.43 % 1.04 %to loans heldfor investmentAllowance forcredit lossesto loans held 1.70 % 1.78 % 1.80 % 1.43 % 1.04 %for investmentexcluding PPPloansNetcharge-offs to 0.05 0.06 0.29 0.04 0.07 average loans^(2)Non-performingloans as a 0.22 % 0.25 % 0.29 % 0.34 % 0.39 %percentage oftotal loansNon-performingassets as a 0.13 % 0.20 % 0.24 % 0.27 % 0.26 %percentage oftotal assets ^(1) Prior to the adoption of ASU 2016-13, the provision for unfundedcommitments was included in other expense and totaled $56 for the fourthquarter of 2019.^(2) Annualized.

ATLANTIC CAPITAL BANCSHARES, INC.Period End Deposits Linked December31, September30, June30, March31, December31, Quarter YearOver(dollars in 2020 2020 2020 2020 2019 Change YearChangethousands)DDA $ 1,033,765 $ 843,656 $ 883,662 $ 712,919 $ 824,646 $ 190,109 $ 209,119 NOW 760,638 387,858 449,737 368,463 373,727 372,780 386,911 Savings 625 568 583 567 1,219 57 (594 )Money market 1,030,753 945,834 879,863 982,109 1,173,218 84,919 (142,465 )Time 241,328 196,343 131,353 66,793 44,389 44,985 196,939 Brokered 94,399 94,463 62,433 94,268 81,847 (64 ) 12,552 Total deposits $ 3,161,508 $ 2,468,722 $ 2,407,631 $ 2,225,119 $ 2,499,046 $ 692,786 $ 662,462 Average Deposits 2020 2019 Linked Fourth Third Second First Fourth Quarter Q4 2020 vs(dollars in Quarter Quarter Quarter Quarter Quarter Change Q4 2019thousands)DDA $ 977,009 $ 854,715 $ 815,299 $ 713,001 $ 718,298 $ 122,294 $ 258,711 NOW 558,967 440,734 462,051 382,178 320,637 118,233 238,330 Savings 614 586 574 650 1,098 28 (484 )Money market 1,026,347 942,062 952,444 1,010,713 1,006,449 84,285 19,898 Time 221,792 166,019 96,362 55,775 37,388 55,773 184,404 Brokered 89,673 68,102 83,228 92,188 62,757 21,571 26,916 Total deposits $ 2,874,402 $ 2,472,218 $ 2,409,958 $ 2,254,505 $ 2,146,627 $ 402,184 $ 727,775 Noninterestbearing depositsas a percentage 34.0 % 34.6 % 33.8 % 31.6 % 33.5 % of averagedepositsCost ofinterest-bearing 0.25 % 0.28 % 0.33 % 1.09 % 1.36 % depositsCost of deposits 0.16 % 0.19 % 0.22 % 0.75 % 0.90 %

ATLANTIC CAPITAL BANCSHARES, INC. Non-GAAP Performance and Financial Measures Reconciliation For the year 2020 2019 ended December31, Fourth Third Second First Fourth (in thousands,except share and Quarter Quarter Quarter Quarter Quarter 2020 2019 per share data) Taxable equivalentinterest income reconciliationInterest income- $ 24,943 $ 24,233 $ 23,797 $ 26,023 $ 26,532 $ 98,996 $ 105,847 GAAPTaxable equivalent 345 345 354 223 167 1,478 459 adjustmentInterest income- $ 25,288 $ 24,578 $ 24,151 $ 26,246 $ 26,699 $ 100,474 $ 106,306 taxable equivalent Taxable equivalentnet interestincome reconciliation -continuingoperationsNet interest $ 22,644 $ 21,718 $ 21,631 $ 20,980 $ 20,567 $ 86,973 $ 80,864 income- GAAPTaxable equivalent 345 345 354 223 167 1,478 459 adjustmentNet interestincome- taxableequivalent - $ 22,989 $ 22,063 $ 21,985 $ 21,203 $ 20,734 $ 88,451 $ 81,323 continuingoperations Loan yieldexcluding PPP loansreconciliationLoan yield - GAAP 3.89 % 3.82 % 3.87 % 4.77 % 4.95 % 4.06 % 5.26 %Impact of PPP (0.03 ) 0.13 0.22 ? ? 0.10 ? loansLoan yieldexcluding PPP 3.86 3.95 % 4.09 % 4.77 % 4.95 % 4.16 % 5.26 %loans Taxable equivalentnet interestmargin reconciliation-continuingoperationsNet interestmargin- GAAP- 2.86 % 3.09 % 3.17 % 3.38 % 3.35 % 3.11 % 3.52 %continuingoperationsImpact of taxableequivalent 0.05 0.05 0.06 0.03 0.03 0.05 0.06 adjustmentNet interestmargin- taxableequivalent- 2.91 % 3.14 % 3.23 % 3.41 % 3.38 % 3.16 % 3.58 %continuingoperations Taxable equivalentnet interest marginreconciliationNet interest 2.86 % 3.09 % 3.17 % 3.38 % 3.35 % 3.11 % 3.52 %margin- GAAPImpact of taxableequivalent 0.05 0.05 0.06 0.03 0.03 0.05 0.02 adjustmentNet interestmargin- taxable 2.91 % 3.14 % 3.23 % 3.41 % 3.38 % 3.16 % 3.54 %equivalent Taxable equivalentnet interestmargin excluding PPP loansreconciliationNet interest 2.86 % 3.09 % 3.17 % 3.38 % 3.35 % 3.11 % 3.52 %margin- GAAPImpact of PPP (0.05 ) 0.09 0.18 ? ? 0.07 ? loansNet interestmargin- taxableequivalent 2.81 % 3.18 % 3.35 % 3.38 % 3.35 % 3.18 % 3.52 %excluding PPPloans Taxable equivalentincome before income taxesreconciliationIncome beforeincome taxes- $ 12,015 $ 10,481 $ 2,207 $ 2,451 $ 9,077 $ 27,153 $ 35,769 GAAPTaxable equivalent 345 345 354 223 167 1,478 459 adjustmentIncome before $ 12,360 $ 10,826 $ 2,561 $ 2,674 $ 9,244 $ 28,631 $ 36,228 income taxes Taxable equivalentincome tax expense reconciliationIncome tax $ 2,065 $ 1,863 $ 358 $ 327 $ 1,937 $ 4,613 $ 7,611 expense- GAAPTaxable equivalent 345 345 354 223 167 1,478 459 adjustmentIncome tax expense $ 2,410 $ 2,208 $ 712 $ 550 $ 2,104 $ 6,091 $ 8,070 Tangible bookvalue per common sharereconciliationTotalshareholders? $ 338,586 $ 340,309 $ 335,980 $ 332,300 $ 326,495 $ 338,586 $ 326,495 equityIntangible assets (19,925 ) (19,925 ) (19,925 ) (19,925 ) (19,925 ) (19,925 ) (19,925 )Total tangible $ 318,661 $ 320,384 $ 316,055 $ 312,375 $ 306,570 $ 318,661 $ 306,570 common equityCommon shares 20,394,912 21,202,783 21,477,631 21,479,986 21,751,026 20,394,912 21,751,026 outstandingBook value percommon share- $ 16.60 $ 16.05 $ 15.64 $ 15.47 $ 15.01 $ 16.60 $ 15.01 GAAPTangible book 15.62 15.11 14.72 14.54 14.09 15.62 14.09 value Tangible commonequity to tangible assetsreconciliationTotalshareholders? $ 338,586 $ 340,309 $ 335,980 $ 332,300 $ 326,495 $ 338,586 $ 326,495 equityIntangible assets (19,925 ) (19,925 ) (19,925 ) (19,925 ) (19,925 ) (19,925 ) (19,925 )Total tangible $ 318,661 $ 320,384 $ 316,055 $ 312,375 $ 306,570 $ 318,661 $ 306,570 common equity Total assets $ 3,615,617 $ 2,923,977 $ 2,890,622 $ 2,719,658 $ 2,910,379 $ 3,615,617 $ 2,910,379 Intangible assets (19,925 ) (19,925 ) (19,925 ) (19,925 ) (19,925 ) (19,925 ) (19,925 )Total tangible $ 3,595,692 $ 2,904,052 $ 2,870,697 $ 2,699,733 $ 2,890,454 $ 3,595,692 $ 2,890,454 assetsTangible commonequity to tangible 8.86 % 11.03 % 11.01 % 11.57 % 10.61 % 8.86 % 10.61 %assets Allowance forcredit losses toloans held for investmentreconciliationTotal loans held $ 2,249,036 $ 2,188,035 $ 2,184,694 $ 1,932,909 $ 1,873,524 $ 2,249,036 $ 1,873,524 for investmentPPP loans (192,160 ) (231,834 ) (234,049 ) ? ? (192,160 ) ? Total loans heldfor investment $ 2,056,876 $ 1,956,201 $ 1,950,645 $ 1,932,909 $ 1,873,524 $ 2,056,876 $ 1,873,524 excluding PPPloans Allowance forcredit losses to 1.55 % 1.59 % 1.61 % 1.43 % 1.04 % 1.55 % 1.04 %loans held forinvestmentAllowance forcredit losses toloans held for 1.70 % 1.78 % 1.80 % 1.43 % 1.04 % 1.70 % 1.04 %investmentexcluding PPPloans

ATLANTIC CAPITAL BANCSHARES, INC.Financial Information from Discontinued Operations Components of Net Income from Discontinued Operations For the year ended 2020 2019 December31, Fourth Third Second First Fourth (in thousands) Quarter Quarter Quarter Quarter Quarter 2020 2019 Net interest $ ? $ ? $ ? $ ? $ ? $ ? $ 3,086 incomeProvision for ? ? ? ? ? ? ? credit lossesNet interestincome after ? ? ? ? ? ? 3,086 provisionService ? ? ? ? ? ? 527 chargesMortgage ? ? ? ? ? ? 288 incomeGain on sale ? ? ? ? ? ? 34,475 of branchesOther income ? ? ? ? ? ? (1 )Totalnoninterest ? ? ? ? ? ? 35,289 incomeSalaries andemployee ? ? ? ? ? ? 2,757 benefitsOccupancy ? ? ? ? ? ? 410 Equipment and ? ? ? ? ? ? 131 softwareAmortization ? ? ? ? ? ? 247 of intangiblesCommunicationsand data ? ? ? ? ? ? 586 processingDivestiture ? ? ? ? ? ? 5,095 expenseOthernoninterest ? ? ? ? ? ? 459 expenseTotalnoninterest ? ? ? ? ? ? 9,685 expenseNet incomebefore ? ? ? ? ? ? 28,690 provision forincome taxesProvision for ? ? ? ? ? ? 6,993 income taxesNet incomefrom $ ? $ ? $ ? $ ? $ ? $ ? $ 21,697 discontinuedoperations