GlobeNewswire Inc | Jul 23, 2021 06:00AM EDT

July 23, 2021

ATLANTA, July 23, 2021 (GLOBE NEWSWIRE) -- Atlantic Capital Bancshares, Inc. (NASDAQ: ACBI) announced net income for the quarter ended June 30, 2021 of $11.8 million, or $0.58 per diluted share, compared to $1.8 million, or $0.09 per diluted share, for the second quarter of 2020 and $13.4 million, or $0.65 per diluted share, for the first quarter of 2021.

Atlantic Capital recorded another quarter of strong and sustainable growth in loans, deposits, and revenue.Our new business pipelines remain robust, our banking teams are executing at a high level, and we expect solid growth through the balance of 2021 and into 2022, remarked Douglas Williams, President and Chief Executive Officer.

Second Quarter Highlights(1)

-- Total assets were $3.8 billion, compared to $3.7 billion at March 31, 2021 and $2.9 billion at June 30, 2020. -- Loans held for investment, excluding Paycheck Protection Program (PPP) loans, increased $77.2 million, or 15% annualized, from March 31, 2021 and increased $208.6 million, or 11%, from June 30, 2020. -- Quarterly average deposits increased $150.7 million, or 19% annualized, compared to the first quarter of 2021 and increased $897.6 million, or 37%, compared to the second quarter of 2020. -- Cost of deposits decreased to 0.10% from 0.12% in the first quarter of 2021 and from 0.22% in the second quarter of 2020. -- Tangible book value per common share increased to $16.40 from $15.74 at March 31, 2021 and from $14.72 at June 30, 2020. -- Annualized net charge-offs to average loans totaled 0.10% for the second quarter of 2021 and 0.07% for the full year 2021. Non-performing assets to total assets were 0.14% at June 30, 2021. -- The allowance for credit losses was 1.27% of total loans held for investment at June 30, 2021, compared to 1.31% at March 31, 2021 and 1.61% at June 30, 2020. -- 50,000 shares were repurchased in the second quarter of 2021 totaling $1.3 million at an average price of $25.71. As of June 30, 2021, approximately $1.8 million remained from our $25 million share repurchase program.

Income Statement

Taxable equivalent net interest income totaled $26.0 million for the second quarter of 2021, an increase of $4.1 million, or 18%, from the second quarter of 2020, and an increase of $2.3 million, or 39% annualized, from the first quarter of 2021. The second quarter of 2021 included $3.0 million in PPP loan income compared to $696,000 in the second quarter of 2020 and $2.2 million in the first quarter of 2021. The second quarter of 2021 also included $671,000 in interest income related to the receipt of an investment prepayment penalty and the accelerated accretion of a loan discount upon payoff.

Taxable equivalent net interest margin was 2.91% in the second quarter of 2021, compared to 3.23% in the second quarter of 2020 and 2.81% in the first quarter of 2021. The tax equivalent net interest margin excluding PPP loans was 2.70%, unchanged from the first quarter of 2021.

The yield on loans in the second quarter of 2021 was 4.19%, an increase of 32 basis points from the second quarter of 2020 and an increase of 30 basis points from the first quarter of 2021. Excluding PPP loans, the second quarter of 2021 loan yield was 3.95%, an increase of 12 basis points compared to the first quarter of 2021. In addition, loan interest income for the second quarter of 2021 included $405,000 in previously mentioned accelerated discount accretion.

The cost of deposits in the second quarter of 2021 was 0.10%, a decrease of 12 basis points from the second quarter of 2020 and a decrease of 2 basis points from the first quarter of 2021. The cost of interest bearing deposits decreased 16 basis points to 0.17% from the second quarter of 2020, and decreased 2 basis points from the first quarter of 2021.

In the second quarter of 2021, we recorded a negative provision for credit losses of $933,000 compared to a provision for credit losses of $8.9 million in the second quarter of 2020 and a negative provision for credit losses of $4.5 million in the first quarter of 2021. The second quarter of 2021 provision for credit losses included a negative provision for loan losses of $814,000 and a negative provision for unfunded commitments of $118,000.

Noninterest income totaled $3.6 million in the second quarter of 2021 compared to $2.3 million in the second quarter of 2020 and unchanged from the first quarter of 2021. Service charge income in the second quarter of 2021 totaled $1.7 million, an increase of $646,000 compared to the second quarter of 2020, and an increase of $64,000 from the first quarter of 2021. The increase in service charge income was primarily due to growth in our payments and fintech businesses.

Noninterest expense totaled $15.2 million in the second quarter of 2021, compared to $12.9 million in the second quarter of 2020 and $15.1 million in the first quarter of 2021. Salaries and employee benefits expense totaled $10.4 million in the second quarter of 2021, unchanged compared to the first quarter of 2021.

(1) Commentary is on a fully taxable-equivalent basis unless otherwise noted. Consistent with SEC guidance in Industry Guide 3 that contemplates the calculationoftax-exemptincomeonataxequivalentbasis,netinterestincomeandnetinterestmarginareprovidedonafullytaxable-equivalentbasis, which generally assumes a 21% marginal tax rate. We provide detailed reconciliations in the Non-GAAP Performance and Financial Measures Reconciliation table on page13.

Balance Sheet

Total loans held for investment were $2.3 billion at June 30, 2021, an increase of $80.2 million from June 30, 2020 and a decrease of $35.9 million from March 31, 2021. Loans held for investment, excluding PPP loans, increased $77.2 million, or 15% annualized, from March 31, 2021 and increased $208.6 million, or 11%, from June 30, 2020.

The allowance for credit losses was 1.27% of total loans held for investment at June 30, 2021, compared to 1.31% at March 31, 2021. The decrease in the allowance was a result of an improvement in our current expected credit losses, or CECL, economic forecast along with credit rating upgrades for certain criticized and classified loans. Excluding the impact of PPP loans, the allowance for credit losses at June 30, 2021 was 1.33%, compared to 1.45% at March 31, 2021.

Total average deposits were $3.3 billion for the second quarter of 2021, an increase of $897.6 million, or 37%, from the second quarter of 2020 and an increase of $150.7 million, or 19% annualized, from the first quarter of 2021. Average noninterest bearing deposits were $1.3 billion for the second quarter of 2021, an increase of $480.4 million, or 59%, from the second quarter of 2020 and an increase of $159.2 million, or 56% annualized, from the first quarter of 2021. Noninterest bearing deposits were 39.2% of total average deposits in the second quarter of 2021, compared to 33.8% in the second quarter of 2020 and 36.0% in the first quarter of 2021.

Subsequent Event

As announced and further described in a separate press release issued by Atlantic Capital today, Atlantic Capital and South State Corporation, have entered into a merger agreement under which South State will acquire Atlantic Capital in an all stock merger transaction.

Conference Call

In light of the announcement earlier today of our entry into a merger agreement with South State Corporation, Atlantic Capital and South State will host a joint conference call at 8:00 a.m. ET on Friday, July 23, 2021, to discuss the transaction and the financial results for the quarter ended June 30, 2021. Individuals wishing to participate in the conference call may do so by dialing 1-877-506-9272 from the United States. The call will also be available live via webcast at https://services.choruscall.com/links/ssb210723.html.

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) loans held for investment excluding PPP loans; (iv) loan yield excluding PPP loans; (v) taxable equivalent net interest margin; (vi) taxable equivalent net interest margin excluding PPP loans; (vii) taxable equivalent income before income taxes; (viii) taxable equivalent income tax expense; (ix) tangible common equity to tangible assets; (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. 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 $3.8 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.SelectedFinancial Information For the six months ended 2021 2020 June30, (in thousands,except share Second First Fourth Third Second and per sharedata;taxable Quarter Quarter Quarter Quarter Quarter 2021 2020 equivalent)INCOME SUMMARY Interest income- taxable $ 27,993 $ 25,775 $ 25,288 $ 24,578 $ 24,151 $ 53,768 $ 50,397 equivalent ^(1)Interest 1,958 2,065 2,299 2,515 2,166 4,023 7,209 expenseNet interestincome - 26,035 23,710 22,989 22,063 21,985 49,745 43,188 taxableequivalentProvision for (933 ) (4,519 ) 481 28 8,863 (5,452 ) 16,937 credit lossesNet interestincome after 26,968 28,229 22,508 22,035 13,122 55,197 26,251 provision forcredit lossesNoninterest 3,584 3,562 3,016 2,504 2,343 7,146 4,765 incomeNoninterest 15,197 15,149 13,164 13,713 12,904 30,346 25,781 expenseIncome before 15,355 16,642 12,360 10,826 2,561 31,997 5,235 income taxesIncome tax 3,539 3,280 2,410 2,208 712 6,819 1,262 expenseNet income^(1) $ 11,816 $ 13,362 $ 9,950 $ 8,618 $ 1,849 $ 25,178 $ 3,973 (2) PER SHARE DATA Dilutedearnings per $ 0.58 $ 0.65 $ 0.48 $ 0.40 $ 0.09 $ 1.23 $ 0.18 shareBook value per 17.38 16.72 16.60 16.05 15.64 17.38 15.64 shareTangible bookvalue per 16.40 15.74 15.62 15.11 14.72 16.40 14.72 common share ^(2) PERFORMANCE MEASURESReturn on 13.60 % 15.99 % 11.68 % 10.05 % 2.20 % 14.77 % 2.38 %average equityReturn on 1.26 1.50 1.19 1.15 0.25 1.38 0.28 average assetsTaxableequivalent net 2.91 2.81 2.91 3.14 3.23 2.86 3.32 interest marginTaxableequivalent netinterest margin 2.70 2.70 2.81 3.18 3.35 2.70 3.38 excluding PPPloansEfficiency 51.97 56.30 51.30 56.61 53.82 54.04 54.42 ratioAverage loansto average 67.54 71.93 76.81 88.65 88.46 69.67 86.23 depositsCAPITAL Average equityto average 9.24 % 9.39 % 10.18 % 11.45 % 11.53 % 9.31 % 11.95 %assetsTangible commonequity to 8.86 8.63 8.86 11.03 11.01 8.86 11.01 tangible assetsLeverage ratio 8.4 ^ 8.4 8.9 9.9 9.9 8.5 ^ 10.3 (3) (4)Total risk ^ ^based capital 16.0 (3) 16.4 16.1 16.9 14.8 16.0 (4) 14.8 ratio SHARES OUTSTANDINGNumber ofcommon shares 20,319,429 20,354,077 20,394,912 21,202,783 21,477,631 20,319,429 21,477,631 outstanding -basicNumber ofcommon shares 20,595,812 20,617,188 20,492,542 21,298,098 21,569,050 20,595,812 21,569,050 outstanding -dilutedAverage numberof common 20,332,503 20,380,066 20,711,089 21,500,735 21,472,462 20,356,153 21,580,855 shares - basicAverage numberof common 20,516,478 20,502,184 20,795,332 21,543,805 21,535,040 20,509,370 21,688,712 shares -diluted ASSET QUALITY Allowance forcredit losses 1.27 % 1.31 % 1.55 % 1.59 % 1.61 % 1.27 % 1.61 %to loans heldfor investmentNet charge-offsto average 0.10 0.04 0.05 0.06 0.29 0.07 0.17 loans ^(4)Non-performingassets to total 0.14 0.06 0.13 0.20 0.24 0.14 0.24 assets AVERAGE BALANCESTotal loans $ 2,233,906 $ 2,270,660 $ 2,207,956 $ 2,191,669 $ 2,131,847 $ 2,252,182 $ 2,011,016 Investment 656,507 579,547 491,134 453,382 462,850 618,239 440,410 securitiesTotal assets 3,771,970 3,611,417 3,328,719 2,977,444 2,932,716 3,692,133 2,809,491 Deposits 3,307,601 3,156,906 2,874,402 2,472,218 2,409,958 3,232,669 2,332,231 Shareholders' 348,416 338,990 338,948 341,017 338,027 343,725 335,754 equity AT PERIOD END Loans and loans $ 2,264,899 $ 2,302,661 $ 2,249,036 $ 2,188,894 $ 2,185,847 $ 2,264,899 $ 2,185,847 held for saleInvestment 714,065 613,236 535,579 446,706 457,749 714,065 457,749 securitiesTotal assets 3,780,445 3,732,668 3,615,617 2,923,977 2,890,622 3,780,445 2,890,622 Deposits 3,306,224 3,277,692 3,161,508 2,468,722 2,407,631 3,306,224 2,407,631 Shareholders? 353,185 340,328 338,586 340,309 335,980 353,185 335,980 equity ^(1)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.^(2)Excludes effect of acquisition related intangibles.^(3)Amounts are estimates as of June 30, 2021.^(4)Annualized.



ATLANTIC CAPITAL BANCSHARES, INC.ConsolidatedBalance Sheets (unaudited) June30, March31, December31, June30, (in thousands, 2021 2021 2020 2020 except share data)ASSETS Cash and due from $ 35,530 $ 32,850 $ 16,865 $ 33,759 banksInterest-bearing 593,195 612,966 636,537 33,038 deposits in banksCash and cash 628,725 645,816 653,402 66,797 equivalentsInvestmentsecurities 480,518 390,701 335,423 271,829 available for saleInvestmentsecurities held tomaturity, net ofallowance forcredit losses of$13, $14, $14, and 233,547 222,535 200,156 185,920 $13 at June 30,2021, March 31,2021, December 31,2020 and June 30,2020, respectivelyOther investments 24,293 24,709 25,892 28,811 Loans held for sale ? 1,847 ? 1,153 Loans held for 2,264,899 2,300,814 2,249,036 2,184,694 investmentLess: allowance for (26,123 ) (27,506 ) (31,818 ) (31,605 ) loan lossesLoans held for 2,238,776 2,273,308 2,217,218 2,153,089 investment, netPremises and 19,643 20,633 21,589 22,494 equipment, netBank owned life 73,610 73,223 72,856 67,127 insuranceGoodwill 19,925 19,925 19,925 19,925 Other intangibles, 2,637 2,688 2,731 2,731 netOther real estate 16 16 16 779 ownedOther assets 58,755 57,267 66,409 69,967 Total assets $ 3,780,445 $ 3,732,668 $ 3,615,617 $ 2,890,622 LIABILITIES ANDSHAREHOLDERS? EQUITYDeposits: Noninterest-bearing $ 1,374,018 $ 1,280,524 $ 1,033,765 $ 883,662 demandInterest-bearing 536,677 485,540 760,638 449,737 checkingSavings 676 562 625 583 Money market 1,026,239 1,142,361 1,030,753 879,863 Time 283,656 294,129 241,328 131,353 Brokered deposits 84,958 74,576 94,399 62,433 Total deposits 3,306,224 3,277,692 3,161,508 2,407,631 Federal funds ? ? ? 6,000 purchasedFederal Home Loan ? ? ? 50,000 Bank borrowingsLong-term debt 73,953 73,878 73,807 49,958 Other liabilities 47,083 40,770 41,716 41,053 Total liabilities 3,427,260 3,392,340 3,277,031 2,554,642 SHAREHOLDERS? EQUITYPreferred stock, nopar value;10,000,000 sharesauthorized; noshares issued and ? ? ? ? outstanding as ofJune30,2021,March31,2021,December31,2020and June30,2020Common stock, nopar value;100,000,000 sharesauthorized;20,319,429,20,354,077,20,394,912, and21,477,631 shares 206,619 207,047 209,942 224,520 issued andoutstanding as ofJune30,2021,March31,2021,December31,2020and June30,2020,respectivelyRetained earnings 139,315 127,499 114,137 95,570 Accumulated othercomprehensive 7,251 5,782 14,507 15,890 incomeTotal shareholders? 353,185 340,328 338,586 335,980 equityTOTAL LIABILITIESAND SHAREHOLDERS? $ 3,780,445 $ 3,732,668 $ 3,615,617 $ 2,890,622 EQUITY



ATLANTIC CAPITAL BANCSHARES, INC.Consolidated Statements of Income (unaudited) (in thousands,except share Three months ended Six months ended and per sharedata) June30, March31, December31, September30, June30, June30, June30, 2021 2021 2020 2020 2020 2021 2020 INTEREST INCOMELoans, $ 23,352 $ 21,769 $ 21,609 $ 21,049 $ 20,496 $ 45,121 $ 42,922 including feesInvestment 3,900 3,374 3,000 2,910 3,041 7,274 5,773 securitiesInterest anddividends onother 366 267 334 274 260 633 1,125 interest?earningassetsTotal interest 27,618 25,410 24,943 24,233 23,797 53,028 49,820 incomeINTEREST EXPENSEInterest on 851 971 1,188 1,151 1,299 1,822 5,481 depositsInterest onFederal Home ? ? ? 16 38 ? 38 Loan BankadvancesInterest onfederal fundspurchased andsecurities ? ? ? 3 6 ? 38 sold underagreements torepurchaseInterest on 1,107 1,094 1,111 1,345 823 2,201 1,652 long-term debtTotal interest 1,958 2,065 2,299 2,515 2,166 4,023 7,209 expenseNET INTERESTINCOME BEFORE 25,660 23,345 22,644 21,718 21,631 49,005 42,611 PROVISION FORCREDIT LOSSESProvision for (933 ) (4,519 ) 481 28 8,863 (5,452 ) 16,937 credit lossesNET INTERESTINCOME AFTER 26,593 27,864 22,163 21,690 12,768 54,457 25,674 PROVISION FORCREDIT LOSSESNONINTEREST INCOMEService 1,727 1,663 1,341 1,217 1,081 3,390 2,313 chargesGains (losses)on sale of ? 2 (23 ) ? ? 2 ? securities(Losses) gainson sale of ? ? (6 ) (145 ) ? ? 5 other assetsDerivatives (7 ) 47 11 10 (10 ) 40 236 (loss) incomeBank owned 388 391 368 363 367 779 729 life insuranceSBA lending 1,231 1,225 1,015 893 782 2,456 1,196 activitiesOthernoninterest 245 234 310 166 123 479 286 incomeTotalnoninterest 3,584 3,562 3,016 2,504 2,343 7,146 4,765 incomeNONINTEREST EXPENSESalaries andemployee 10,362 10,421 8,437 8,850 8,466 20,783 16,942 benefitsOccupancy 778 734 767 739 883 1,512 1,677 Equipment and 819 774 969 826 763 1,593 1,542 softwareProfessional 723 922 686 562 792 1,645 1,497 servicesCommunicationsand data 869 792 789 757 670 1,661 1,567 processingMarketing andbusiness 138 108 144 141 79 246 232 developmentTravel, mealsand 47 10 14 39 34 57 174 entertainmentFDIC premiums 421 275 241 213 175 696 175 Othernoninterest 1,040 1,113 1,117 1,586 1,042 2,153 1,975 expenseTotalnoninterest 15,197 15,149 13,164 13,713 12,904 30,346 25,781 expense INCOME BEFOREPROVISION FOR 14,980 16,277 12,015 10,481 2,207 31,257 4,658 INCOME TAXESProvision for 3,164 2,915 2,065 1,863 358 6,079 685 income taxesNET INCOME $ 11,816 $ 13,362 $ 9,950 $ 8,618 $ 1,849 $ 25,178 $ 3,973 Net income percommon share - $ 0.58 $ 0.66 $ 0.48 $ 0.40 $ 0.09 $ 1.24 $ 0.18 basicNet income percommon share - $ 0.58 $ 0.65 $ 0.48 $ 0.40 $ 0.09 $ 1.23 $ 0.18 diluted Weightedaverage shares 20,332,503 20,380,066 20,711,089 21,500,735 21,472,462 20,356,153 21,580,855 - basicWeightedaverage shares 20,516,478 20,502,184 20,795,332 21,543,805 21,535,040 20,509,370 21,688,712 - diluted



ATLANTIC CAPITAL BANCSHARES, INC.Average BalanceSheets and Net Interest MarginAnalysisSelectedFinancial Information Three months ended June30,2021 March31,2021 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 $ 687,795 $ 201 0.12 % $ 561,809 $ 168 0.12 %other banksInvestment securities:Taxableinvestment 426,634 2,382 2.24 356,250 1,898 2.16 securitiesNon-taxableinvestment 229,873 1,893 3.30 223,297 1,841 3.34 securities ^(1)Total investment 656,507 4,275 2.61 579,547 3,739 2.62 securitiesLoans 2,233,906 23,352 4.19 2,270,660 21,769 3.89 FHLB and FRB 11,931 165 5.55 12,701 99 3.17 stockTotalinterest-earning 3,590,139 27,993 3.13 3,424,717 25,775 3.05 assetsNon-earning 181,831 186,700 assetsTotal assets $ 3,771,970 $ 3,611,417 Liabilities Interest bearing deposits:NOW, moneymarket, and 1,637,374 725 0.18 1,662,097 834 0.20 savingsTime deposits 290,331 68 0.09 273,615 74 0.11 Brokered 84,168 58 0.28 84,663 63 0.30 depositsTotalinterest-bearing 2,011,873 851 0.17 2,020,375 971 0.19 depositsTotal borrowings 89 ? ? ? ? ? Total long-term 73,904 1,107 6.01 73,830 1,094 6.01 debtTotalinterest-bearing 2,085,866 1,958 0.38 2,094,205 2,065 0.40 liabilitiesDemand deposits 1,295,728 1,136,531 Other 41,960 41,691 liabilitiesShareholders? 348,416 338,990 equityTotalliabilities and $ 3,771,970 $ 3,611,417 shareholders?equityNet interest 2.75 % 2.65 %spreadNet interestincome and net $ 26,035 2.91 % $ 23,710 2.81 %interest margin^(2) Non-taxableequivalent net 2.87 % 2.76 %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 BalanceSheets and Net Interest MarginAnalysisSelectedFinancial Information Three months ended June30,2021 June30,2020 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 $ 687,795 $ 201 0.12 % $ 129,989 $ 23 0.07 %other banksInvestment securities:Taxableinvestment 426,634 2,382 2.24 247,668 1,581 2.57 securitiesNon-taxableinvestment 229,873 1,893 3.30 215,182 1,814 3.39 securities ^(1)Total investment 656,507 4,275 2.61 462,850 3,395 2.95 securitiesLoans 2,233,906 23,352 4.19 2,131,847 20,496 3.87 FHLB and FRB 11,931 165 5.55 16,842 237 5.66 stockTotalinterest-earning 3,590,139 27,993 3.13 2,741,528 24,151 3.54 assetsNon-earning 181,831 191,188 assetsTotal assets $ 3,771,970 $ 2,932,716 Liabilities Interest bearing deposits:NOW, moneymarket, and 1,637,374 725 0.18 1,415,069 1,115 0.32 savingsTime deposits 290,331 68 0.09 96,362 58 0.24 Brokered 84,168 58 0.28 83,228 126 0.61 depositsTotalinterest-bearing 2,011,873 851 0.17 1,594,659 1,299 0.33 depositsTotal borrowings 89 ? ? 97,769 44 0.18 Total long-term 73,904 1,107 6.01 49,930 823 6.63 debtTotalinterest-bearing 2,085,866 1,958 0.38 1,742,358 2,166 0.50 liabilitiesDemand deposits 1,295,728 815,299 Other 41,960 37,032 liabilitiesShareholders? 348,416 338,027 equityTotalliabilities and $ 3,771,970 $ 2,932,716 shareholders?equityNet interest 2.75 % 3.04 %spreadNet interestincome and net $ 26,035 2.91 % $ 21,985 3.23 %interest margin^(2) Non-taxableequivalent net 2.87 % 3.17 %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 BalanceSheets and Net Interest MarginAnalysisSelectedFinancial Information Six months ended June30,2021 June30,2020 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 $ 625,503 $ 369 0.12 % $ 153,526 $ 691 0.91 %other banksOther short-term ? ? ? 55 ? ? investmentsInvestment securities:Taxableinvestment 391,636 4,280 2.20 250,802 3,261 2.61 securitiesNon-taxableinvestment 226,603 3,734 3.32 189,608 3,089 3.28 securities ^(1)Total investment 618,239 8,014 2.61 440,410 6,350 2.90 securitiesLoans 2,252,182 45,121 4.04 2,011,016 42,922 4.29 FHLB and FRB 12,310 264 4.32 14,760 434 5.91 stockTotalinterest-earning 3,508,234 53,768 3.09 2,619,767 50,397 3.87 assetsNon-earning 183,899 189,724 assetsTotal assets $ 3,692,133 $ 2,809,491 Liabilities Interest bearing deposits:NOW, moneymarket, and 1,649,667 1,559 0.19 1,404,305 4,882 0.70 savingsTime deposits 282,019 142 0.10 76,068 111 0.29 Brokered 84,414 121 0.29 87,708 488 1.12 depositsTotalinterest-bearing 2,016,100 1,822 0.18 1,568,081 5,481 0.70 depositsTotal borrowings 45 ? ? 54,736 76 0.28 Total long-term 73,867 2,201 6.01 49,909 1,652 6.66 debtTotalinterest-bearing 2,090,012 4,023 0.39 1,672,726 7,209 0.87 liabilitiesDemand deposits 1,216,569 764,150 Other 41,827 36,861 liabilitiesShareholders? 343,725 335,754 equityTotalliabilities and $ 3,692,133 $ 2,809,491 shareholders?equityNet interest 2.70 % 3.00 %spreadNet interestincome and net $ 49,745 2.86 % $ 43,188 3.32 %interest margin^(2) Non-taxableequivalent net 2.82 % 3.27 %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.



ATLANTICCAPITAL BANCSHARES,INC.Period End Loans Linked YearOver June30, March31, December31, September30, June30, Quarter Year (dollars in 2021 2021 2020 2020 2020 Change Change thousands)Loans held for saleLoans held $ ? $ 1,847 $ ? $ 859 $ 1,153 $ (1,847 ) $ (1,153 ) for saleTotal loans $ ? $ 1,847 $ ? $ 859 $ 1,153 $ (1,847 ) $ (1,153 ) held for sale Loans heldfor investmentCommercial loans:Commercialand $ 767,646 $ 735,287 $ 760,645 $ 712,567 $ 739,769 $ 32,359 $ 27,877 industrial -otherCommercialand 105,684 218,766 192,160 231,834 234,049 (113,082 ) (128,365 ) industrial -PPPCommercial real estate:Multifamily 58,632 80,507 66,262 58,336 58,909 (21,875 ) (277 ) Owner 392,108 381,018 373,689 364,170 366,847 11,090 25,261 occupiedInvestment 506,230 480,566 469,150 458,279 474,565 25,664 31,665 Construction and land:1?4 familyresidential 2,074 1,578 1,171 ? 11 496 2,063 constructionOtherconstruction, 178,423 141,218 144,424 139,836 128,980 37,205 49,443 development,and landTotalcommercial 2,010,797 2,038,940 2,007,501 1,965,022 2,003,130 (28,143 ) 7,667 loans Residential: Residential 45,207 31,817 33,783 29,460 32,327 13,390 12,880 mortgagesHome equity 24,972 26,293 25,443 24,528 23,689 (1,321 ) 1,283 Totalresidential 70,179 58,110 59,226 53,988 56,016 12,069 14,163 loans Consumer 184,203 203,176 176,066 154,916 113,149 (18,973 ) 71,054 Other 5,234 7,689 13,897 22,777 22,160 (2,455 ) (16,926 ) 2,270,413 2,307,915 2,256,690 2,196,703 2,194,455 (37,502 ) 75,958 Less netdeferred feesand other (5,514 ) (7,101 ) (7,654 ) (8,668 ) (9,761 ) 1,587 4,247 unearnedincomeTotal loansheld for $ 2,264,899 $ 2,300,814 $ 2,249,036 $ 2,188,035 $ 2,184,694 $ (35,915 ) $ 80,205 investment Total loans $ 2,264,899 $ 2,302,661 $ 2,249,036 $ 2,188,894 $ 2,185,847 $ (37,762 ) $ 79,052 Totalunfunded $ 804,784 $ 789,869 $ 813,757 $ 764,247 $ 749,321 $ 14,915 $ 55,463 commitments



ATLANTICCAPITAL BANCSHARES,INC.Allowance forCredit Losses Activity andCredit Quality 2021 2020 Second First Fourth Third Second (dollars in Quarter Quarter Quarter Quarter Quarter thousands)Allowance for loan lossesBalance atbeginning of $ 27,506 $ 31,818 $ 31,894 $ 31,605 $ 24,896 periodProvision for (814 ) (4,074 ) 225 636 8,222 loan lossesLoans charged-off:Commercial and (386 ) (288 ) (401 ) (404 ) (1,479 ) industrialCommercial ? ? ? ? ? real estateConstruction ? ? ? ? ? and landResidential (223 ) ? ? ? (36 ) mortgagesHome equity ? ? ? ? ? Consumer ? ? ? ? ? Other ? ? ? ? ? Total loans (609 ) (288 ) (401 ) (404 ) (1,515 ) charged-offRecoveries onloans previouslycharged-off:Commercial and 6 50 37 56 1 industrialCommercial ? ? 44 ? ? real estateConstruction ? ? 18 ? ? and landResidential 32 ? ? ? ? mortgagesHome equity ? ? ? ? ? Consumer 2 ? 1 1 1 Other ? ? ? ? ? Total 40 50 100 57 2 recoveriesNet $ (569 ) $ (238 ) $ (301 ) $ (347 ) $ (1,513 ) charge-offsBalance at $ 26,123 $ 27,506 $ 31,818 $ 31,894 $ 31,605 period end Allowance forunfunded commitmentsBalance atbeginning of $ 2,683 $ 3,128 $ 2,871 $ 3,480 $ 2,838 periodProvision forunfunded (118 ) (445 ) 257 (609 ) 642 commitmentsBalance at $ 2,565 $ 2,683 $ 3,128 $ 2,871 $ 3,480 period end Totalallowance forcredit losses $ 28,688 $ 30,189 $ 34,946 $ 34,765 $ 35,085 - loans andunfundedcommitments Provision forcredit losses under CECLProvision for (814 ) (4,074 ) 225 636 8,222 loan lossesProvision forsecuritiesheld to (1 ) - (1 ) 1 (1 ) maturitycredit lossesProvision forunfunded (118 ) (445 ) 257 (609 ) 642 commitmentsTotalprovision for $ (933 ) $ (4,519 ) $ 481 $ 28 $ 8,863 credit losses Non-performing $ 5,194 $ 2,056 $ 4,862 $ 5,421 $ 6,265 loansForeclosedproperties 16 16 16 563 779 (OREO)Totalnonperforming $ 5,210 $ 2,072 $ 4,878 $ 5,984 $ 7,044 assets Allowance forloan losses to 1.15 % 1.20 % 1.41 % 1.46 % 1.45 %loans held forinvestmentAllowance forcredit losses 1.27 % 1.31 % 1.55 % 1.59 % 1.61 %to loans heldfor investmentAllowance forcredit lossesto loans held 1.33 % 1.45 % 1.70 % 1.78 % 1.80 %for investmentexcluding PPPloansNetcharge-offs to 0.10 0.04 0.05 0.06 0.29 average loans^(1)Non-performingloans as a 0.23 % 0.09 % 0.22 % 0.25 % 0.29 %percentage oftotal loansNon-performingassets as a 0.14 % 0.06 % 0.13 % 0.20 % 0.24 %percentage oftotal assets ^(1) Annualized.



ATLANTIC CAPITAL BANCSHARES, INC. Period End Deposits Linked June30, March31, December31, September30, June30, Quarter YearOver (dollars in 2021 2021 2020 2020 2020 Change YearChange thousands)DDA $ 1,374,018 $ 1,280,524 $ 1,033,765 $ 843,656 $ 883,662 $ 93,494 $ 490,356 NOW 536,677 485,540 760,638 387,858 449,737 51,137 86,940 Savings 676 562 625 568 583 114 93 Money market 1,026,239 1,142,361 1,030,753 945,834 879,863 (116,122 ) 146,376 Time 283,656 294,129 241,328 196,343 131,353 (10,473 ) 152,303 Brokered 84,958 74,576 94,399 94,463 62,433 10,382 22,525 Total deposits $ 3,306,224 $ 3,277,692 $ 3,161,508 $ 2,468,722 $ 2,407,631 $ 28,532 $ 898,593 Average Deposits 2021 2020 Linked Second First Fourth Third Second Quarter Q2 2021 vs (dollars in Quarter Quarter Quarter Quarter Quarter Change Q2 2020 thousands)DDA $ 1,295,728 $ 1,136,531 $ 977,009 $ 854,715 $ 815,299 $ 159,197 $ 480,429 NOW 548,358 618,701 558,967 440,734 462,051 (70,343 ) 86,307 Savings 593 587 614 586 574 6 19 Money market 1,088,423 1,042,809 1,026,347 942,062 952,444 45,614 135,979 Time 290,331 273,615 221,792 166,019 96,362 16,716 193,969 Brokered 84,168 84,663 89,673 68,102 83,228 (495 ) 940 Total deposits $ 3,307,601 $ 3,156,906 $ 2,874,402 $ 2,472,218 $ 2,409,958 $ 150,695 $ 897,643 Noninterestbearing depositsas a percentage 39.2 % 36.0 % 34.0 % 34.6 % 33.8 % of averagedepositsCost ofinterest-bearing 0.17 % 0.19 % 0.25 % 0.28 % 0.33 % depositsCost of deposits 0.10 % 0.12 % 0.16 % 0.19 % 0.22 %



ATLANTICCAPITAL BANCSHARES,INC.Non-GAAPPerformanceand Financial MeasuresReconciliation For the six months 2021 2020 ended June30, Second First Fourth Third Second (in thousands,except share Quarter Quarter Quarter Quarter Quarter 2021 2020 and per sharedata) Taxableequivalentinterest incomereconciliationInterest $ 27,618 $ 25,410 $ 24,943 $ 24,233 $ 23,797 $ 53,028 $ 49,820 income- GAAPTaxableequivalent 375 365 345 345 354 740 577 adjustmentInterestincome- $ 27,993 $ 25,775 $ 25,288 $ 24,578 $ 24,151 $ 53,768 $ 50,397 taxableequivalent Taxableequivalent netinterest incomereconciliationNet interest $ 25,660 $ 23,345 $ 22,644 $ 21,718 $ 21,631 $ 49,005 $ 42,611 income- GAAPTaxableequivalent 375 365 345 345 354 740 577 adjustmentNet interestincome- $ 26,035 $ 23,710 $ 22,989 $ 22,063 $ 21,985 $ 49,745 $ 43,188 taxableequivalent Loan yieldexcluding PPP loansreconciliationLoan yield - 4.19 % 3.89 % 3.89 % 3.82 % 3.87 % 4.04 % 4.29 %GAAPImpact of PPP (0.24 ) (0.06 ) (0.03 ) 0.13 0.22 (0.15 ) 0.14 loansLoan yieldexcluding PPP 3.95 % 3.83 % 3.86 % 3.95 % 4.09 % 3.89 % 4.43 %loans Taxableequivalent netinterest marginreconciliationNet interest 2.87 % 2.76 % 2.86 % 3.09 % 3.17 % 2.82 % 3.27 %margin- GAAPImpact oftaxable 0.04 0.05 0.05 0.05 0.06 0.04 0.05 equivalentadjustmentNet interestmargin- 2.91 % 2.81 % 2.91 % 3.14 % 3.23 % 2.86 % 3.32 %taxableequivalent Taxableequivalent netinterestmargin excluding PPPloansreconciliationNet interestmargin- 2.91 % 2.81 % 2.91 % 3.14 % 3.23 % 2.86 % 3.32 %taxableequivalentImpact of PPP (0.21 ) (0.11 ) (0.10 ) 0.04 0.12 (0.16 ) 0.06 loansNet interestmargin-taxable 2.70 % 2.70 % 2.81 % 3.18 % 3.35 % 2.70 % 3.38 %equivalentexcluding PPPloans Taxableequivalentincome before income taxesreconciliationIncome beforeincome taxes- $ 14,980 $ 16,277 $ 12,015 $ 10,481 $ 2,207 $ 31,257 $ 4,658 GAAPTaxableequivalent 375 365 345 345 354 740 577 adjustmentIncome before $ 15,355 $ 16,642 $ 12,360 $ 10,826 $ 2,561 $ 31,997 $ 5,235 income taxes Taxableequivalentincome tax expensereconciliationIncome tax $ 3,164 $ 2,915 $ 2,065 $ 1,863 $ 358 $ 6,079 $ 685 expense- GAAPTaxableequivalent 375 365 345 345 354 740 577 adjustmentIncome tax $ 3,539 $ 3,280 $ 2,410 $ 2,208 $ 712 $ 6,819 $ 1,262 expense Tangible bookvalue per common sharereconciliationTotalshareholders? $ 353,185 $ 340,328 $ 338,586 $ 340,309 $ 335,980 $ 353,185 $ 335,980 equityIntangible (19,925 ) (19,925 ) (19,925 ) (19,925 ) (19,925 ) (19,925 ) (19,925 ) assetsTotal tangible $ 333,260 $ 320,403 $ 318,661 $ 320,384 $ 316,055 $ 333,260 $ 316,055 common equityCommon shares 20,319,429 20,354,077 20,394,912 21,202,783 21,477,631 20,319,429 21,477,631 outstandingBook value percommon share- $ 17.38 $ 16.72 $ 16.60 $ 16.05 $ 15.64 $ 17.38 $ 15.64 GAAPTangible book 16.40 15.74 15.62 15.11 14.72 16.40 14.72 value Tangiblecommon equityto tangible assetsreconciliationTotalshareholders? $ 353,185 $ 340,328 $ 338,586 $ 340,309 $ 335,980 $ 353,185 $ 335,980 equityIntangible (19,925 ) (19,925 ) (19,925 ) (19,925 ) (19,925 ) (19,925 ) (19,925 ) assetsTotal tangible $ 333,260 $ 320,403 $ 318,661 $ 320,384 $ 316,055 $ 333,260 $ 316,055 common equity Total assets $ 3,780,445 $ 3,732,668 $ 3,615,617 $ 2,923,977 $ 2,890,622 $ 3,780,445 $ 2,890,622 Intangible (19,925 ) (19,925 ) (19,925 ) (19,925 ) (19,925 ) (19,925 ) (19,925 ) assetsTotal tangible $ 3,760,520 $ 3,712,743 $ 3,595,692 $ 2,904,052 $ 2,870,697 $ 3,760,520 $ 2,870,697 assetsTangiblecommon equity 8.86 % 8.63 % 8.86 % 11.03 % 11.01 % 8.86 % 11.01 %to tangibleassets Allowance forcredit lossesto loans held for investmentreconciliationTotal loansheld for $ 2,264,899 $ 2,300,814 $ 2,249,036 $ 2,188,035 $ 2,184,694 $ 2,264,899 $ 2,184,694 investmentPPP loans (105,684 ) (218,766 ) (192,160 ) (231,834 ) (234,049 ) (105,684 ) (234,049 ) Total loansheld forinvestment $ 2,159,215 $ 2,082,048 $ 2,056,876 $ 1,956,201 $ 1,950,645 $ 2,159,215 $ 1,950,645 excluding PPPloans Allowance forcredit losses 1.27 % 1.31 % 1.55 % 1.59 % 1.61 % 1.27 % 1.61 %to loans heldfor investmentAllowance forcredit lossesto loans held 1.33 % 1.45 % 1.70 % 1.78 % 1.80 % 1.33 % 1.80 %for investmentexcluding PPPloans