GlobeNewswire Inc | Jan 24, 2022 04:01PM EST

January 24, 2022

ATLANTA, Jan. 24, 2022 (GLOBE NEWSWIRE) -- Atlantic Capital Bancshares, Inc. (NASDAQ: ACBI) announced net income for the quarter ended December 31, 2021, of $11.7 million, or $0.57 per diluted share, compared to $10.0 million, or $0.48 per diluted share, for the fourth quarter of 2020 and $13.3 million, or $0.65 per diluted share, for the third quarter of 2021.

Atlantic Capital reported another quarter of solid operating results despite disruptions to economic activity from the Omicron variant and historically low interest rates. All of our businesses contributed to these solid results and credit quality remained strong. New business pipelines are robust in all of our businesses and we anticipate carrying strong momentum into our pending merger with SouthState Corporation, remarked Douglas Williams, President and Chief Executive Officer.

Fourth Quarter Highlights(1)

-- Total assets were $3.8 billion, compared to $4.2 billion at September 30, 2021 and $3.6 billion at December 31, 2020. -- Return on average assets totaled 1.19% and return on average equity was 12.52% in the fourth quarter of 2021. -- Loans held for investment, excluding Paycheck Protection Program (PPP) loans, increased $123.8 million, or 22.2% annualized, from September 30, 2021, and increased $292.4 million, or 14.2%, from December 31, 2020. -- Quarterly average demand deposit accounts increased $112.3 million, or 32.7% annualized, compared to the third quarter of 2021 and increased $510.4 million, or 52.2%, compared to the fourth quarter of 2020. -- Cost of deposits decreased to 0.07% from 0.08% in the third quarter of 2021 and from 0.16% in the fourth quarter of 2020. -- Tangible book value per share increased to $17.39 from $16.94 at September 30, 2021 and from $15.62 at December 31, 2020. -- Annualized net charge-offs to average loans totaled 0.11% for the fourth quarter of 2021 and 0.06% for the full year 2021. Non-performing assets to total assets were 0.11% at December 31, 2021. -- The allowance for credit losses was 1.05% of total loans held for investment at December 31, 2021, compared to 1.16% at September 30, 2021 and 1.55% at December 31, 2020. -- On November 16, 2021, ACBI shareholders approved the announced merger with SouthState Corporation (SouthState), which is expected to close in 2022, subject to regulatory approval.

Income Statement

Taxable equivalent net interest income totaled $25.7 million for the fourth quarter of 2021, compared to $23.0 million in the fourth quarter of 2020 and $25.1 million in the third quarter of 2021. The fourth quarter of 2021 included $929,000 in PPP loan income, compared to $2.3 million in the fourth quarter of 2020 and $1.9 million in the third quarter of 2021.

Taxable equivalent net interest margin was 2.76% in the fourth quarter of 2021, compared to 2.91% in the fourth quarter of 2020 and 2.69% in the third quarter of 2021. The taxable equivalent net interest margin excluding PPP loans was 2.68% for the fourth quarter of 2021, compared to 2.54% for the third quarter of 2021.

The yield on loans in the fourth quarter of 2021 was 3.86%, a decrease of 3 basis points from the fourth quarter of 2020 and a decrease of 5 basis points from the third quarter of 2021. Excluding PPP loans, the fourth quarter of 2021 loan yield was 3.75%, up 4 basis points from the third quarter of 2021.

The cost of deposits in the fourth quarter of 2021 was 0.07%, a decrease of 9 basis points from the fourth quarter of 2020 and a decrease of 1 basis point from the third quarter of 2021. The cost of interest-bearing deposits decreased 13 basis points to 0.12% from the fourth quarter of 2020 and decreased 3 basis points from the third quarter of 2021.

In the fourth quarter of 2021, we recorded a negative provision for credit losses of $731,000, compared to a provision for credit losses of $481,000 in the fourth quarter of 2020 and a negative provision for credit losses of $2.4 million in the third quarter of 2021.

Noninterest income totaled $4.6 million in the fourth quarter of 2021, compared to $3.0 million in the fourth quarter of 2020 and $4.6 million in the third quarter of 2021.

Noninterest expense totaled $16.0 million in the fourth quarter of 2021, compared to $13.2 million in the fourth quarter of 2020 and $15.0 million in the third quarter of 2021. The fourth quarter of 2021 included $846,000 in merger related expenses compared to $2.9 million in the third quarter of 2021. The third quarter of 2021 also included an expense reduction of $3.0 million as a result of the employee retention payroll tax credit pursuant to the CARES Act.

(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 $2.4 billion at December 31, 2021, an increase of $118.2 million from December 31, 2020 and an increase of $93.4 million from September 30, 2021. Loans held for investment, excluding PPP loans, increased $123.8 million, or 22.2% annualized, from September 30, 2021, and increased $292.4 million, or 14.2%, from December 31, 2020.

The allowance for credit losses was 1.05% of total loans held for investment at December 31, 2021, compared to 1.16% at September 30, 2021. The decrease in the allowance was primarily a result of an improvement in our current expected credit losses, or CECL, economic forecast. Excluding the impact of PPP loans, the allowance for credit losses at December 31, 2021 was 1.06%, compared to 1.18% at September 30, 2021.

Total average deposits were $3.4 billion for the fourth quarter of 2021, an increase of $521.4 million, or 18.1%, from the fourth quarter of 2020 and a decrease of $18.1 million, or 2.1% annualized, from the third quarter of 2021. Average noninterest bearing deposits were $1.5 billion for the fourth quarter of 2021, an increase of $510.4 million, or 52.2%, from the fourth quarter of 2020 and an increase of $112.3 million, or 32.7% annualized, from the third quarter of 2021. Noninterest bearing deposits were 43.8% of total average deposits in the fourth quarter of 2021, compared to 34.0% in the fourth quarter of 2020 and 40.3% in the third quarter of 2021.

Merger Update

On July 22, 2021, Atlantic Capital and SouthState entered into an Agreement and Plan of Merger, pursuant to which Atlantic Capital will merge with and into SouthState, with SouthState as the surviving corporation in the merger. The merger remains subject to approval by the Board of Governors of the Federal Reserve System. Approval of the merger has been received from shareholders and the Office of the Comptroller of the Currency.

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 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 the proposed merger with SouthState, 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. Additional information and other factors that could affect future financial results are included in Atlantic Capitals subsequent filings with the SEC. Please refer to the SECs website at www.sec.govwhere 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 year ended 2021 2020 December31, (in thousands,except share and Fourth Third Second First Fourth per share data;taxable Quarter Quarter Quarter Quarter Quarter 2021 2020 equivalent)INCOME SUMMARY Interest income- taxable $ 27,323 $ 27,040 $ 27,993 $ 25,775 $ 25,288 $ 108,132 $ 100,474 equivalent ^(1)Interest expense 1,658 1,895 1,958 2,065 2,299 7,576 12,023 Net interestincome - taxable 25,665 25,145 26,035 23,710 22,989 100,556 88,451 equivalentProvision for (731 ) (2,405 ) (933 ) (4,519 ) 481 (8,588 ) 17,446 credit lossesNet interestincome after 26,396 27,550 26,968 28,229 22,508 109,144 71,005 provision forcredit lossesNoninterest 4,555 4,609 3,584 3,562 3,016 16,310 10,285 incomeNoninterest 15,963 15,018 15,197 15,149 13,164 61,327 52,659 expenseIncome before 14,988 17,141 15,355 16,642 12,360 64,127 28,631 income taxesIncome tax 3,324 3,837 3,539 3,280 2,410 13,981 6,091 expenseNet income^(1) $ 11,664 $ 13,304 $ 11,816 $ 13,362 $ 9,950 $ 50,146 $ 22,540 (2) PER SHARE DATA Diluted earnings $ 0.57 $ 0.65 $ 0.58 $ 0.65 $ 0.48 $ 2.45 $ 1.05 per shareBook value per 18.37 17.92 17.38 16.72 16.60 18.37 16.60 shareTangible bookvalue per common 17.39 16.94 16.40 15.74 15.62 17.39 15.62 share ^(3) PERFORMANCE MEASURESReturn on 12.52 % 14.69 % 13.60 % 15.99 % 11.68 % 14.16 % 6.67 %average equityReturn on 1.19 1.36 1.26 1.50 1.19 1.32 0.76 average assetsTaxableequivalent net 2.76 2.69 2.91 2.81 2.91 2.79 3.16 interest marginTaxableequivalent netinterest margin 2.68 2.54 2.70 2.70 2.81 2.66 3.18 excluding PPPloansEfficiency ratio 53.52 51.12 51.97 56.30 51.30 53.16 54.14 Average loans to 67.79 65.81 67.54 71.93 76.81 68.18 84.11 average depositsCAPITAL Average equityto average 9.51 % 9.23 % 9.24 % 9.39 % 10.18 % 9.34 % 11.33 %assetsTangible commonequity to 9.31 8.21 8.86 8.63 8.86 9.31 8.86 tangible assetsLeverage ratio 8.9 ^(3) 8.5 8.4 8.4 8.9 9.1 ^(3) 8.9 Total risk based 15.3 ^(3) 15.9 16.0 16.4 16.1 15.3 ^(3) 16.1 capital ratio SHARES OUTSTANDINGNumber of commonshares 20,334,150 20,305,109 20,319,429 20,354,077 20,394,912 20,334,150 20,394,912 outstanding -basicNumber of commonshares 20,573,618 20,590,747 20,595,812 20,617,188 20,492,542 20,573,618 20,492,542 outstanding -dilutedAverage numberof common shares 20,309,415 20,308,761 20,332,503 20,380,066 20,711,089 20,276,717 21,342,086 - basicAverage numberof common shares 20,532,447 20,507,604 20,516,478 20,502,184 20,795,332 20,459,032 21,427,722 - diluted ASSET QUALITY Allowance forcredit losses to 1.05 % 1.16 % 1.27 % 1.31 % 1.55 % 1.05 % 1.55 %loans held forinvestmentNet charge-offsto average loans 0.11 0.00 0.10 0.04 0.05 0.06 0.11 ^(4)Non-performingassets to total 0.11 0.10 0.14 0.06 0.13 0.11 0.13 assets AVERAGE BALANCES Total loans $ 2,302,085 $ 2,246,529 $ 2,233,906 $ 2,270,660 $ 2,207,956 $ 2,263,335 $ 2,105,930 Investment 759,824 733,452 656,507 579,547 491,134 682,967 456,422 securitiesTotal assets 3,883,632 3,893,049 3,771,970 3,611,417 3,328,719 3,791,043 2,982,222 Deposits 3,395,762 3,413,882 3,307,601 3,156,906 2,874,402 3,319,454 2,503,703 Shareholders' 369,485 359,300 348,416 338,990 338,948 354,144 337,879 equity AT PERIOD END Loans and loans $ 2,369,321 $ 2,285,670 $ 2,264,899 $ 2,302,661 $ 2,249,036 $ 2,369,321 $ 2,249,036 held for saleInvestment 738,929 772,987 714,065 613,236 535,579 738,929 535,579 securitiesTotal assets 3,819,585 4,210,316 3,780,445 3,732,668 3,615,617 3,819,585 3,615,617 Deposits 3,327,902 3,727,321 3,306,224 3,277,692 3,161,508 3,327,902 3,161,508 Shareholders? 373,523 363,925 353,185 340,328 338,586 373,523 338,586 equity ^(1)Interest income on tax-exempt securities has been increased to reflectcomparable interest on taxable securities. The rate used was 21%, reflecting the statutory federal income tax rate.^(2)Excludes effect of acquisition related intangibles. ^(3)Amounts are estimates as of December 31, 2021. ^(4)Annualized.

ATLANTIC CAPITAL BANCSHARES, INC.ConsolidatedBalance Sheets (unaudited) December31, September30, December31, (in thousands, 2021 2021 2020 except share data)ASSETS Cash and due from $ 16,214 $ 25,725 $ 16,865 banksInterest-bearing 377,780 811,168 636,537 deposits in banksOther short-term 137,181 140,848 ? investmentsCash and cash 531,175 977,741 653,402 equivalentsInvestmentsecurities 501,218 535,158 335,423 available for saleInvestmentsecurities held tomaturity, net ofallowance forcredit losses of$13, $13, and $14, 237,711 237,829 200,156 at December 31,2021, September 30,2021, and December31, 2020,respectivelyOther investments 23,546 23,877 25,892 Loans held for sale 2,087 11,814 ? Loans held for 2,367,234 2,273,856 2,249,036 investmentLess: allowance for (22,186 ) (23,924 ) (31,818 ) loan lossesLoans held for 2,345,048 2,249,932 2,217,218 investment, netPremises and 17,540 18,517 21,589 equipment, netBank owned life 74,385 74,000 72,856 insuranceGoodwill 19,925 19,925 19,925 Other intangibles, 2,597 2,573 2,731 netOther real estate ? ? 16 ownedOther assets 64,353 58,950 66,409 Total assets $ 3,819,585 $ 4,210,316 $ 3,615,617 LIABILITIES ANDSHAREHOLDERS? EQUITYDeposits: Noninterest-bearing $ 1,471,920 $ 1,691,616 $ 1,033,765 demandInterest-bearing 648,763 721,525 760,638 checkingSavings 884 800 625 Money market 823,127 930,929 1,030,753 Time 288,698 287,865 241,328 Brokered deposits 94,510 94,586 94,399 Total deposits 3,327,902 3,727,321 3,161,508 Long-term debt 74,089 74,024 73,807 Other liabilities 44,071 45,046 41,716 Total liabilities 3,446,062 3,846,391 3,277,031 SHAREHOLDERS? EQUITYPreferred stock, nopar value;10,000,000 sharesauthorized; noshares issued and ? ? ? outstanding as ofDecember31,2021,September30,2021andDecember31,2020Common stock, nopar value;100,000,000 sharesauthorized;20,334,150,20,305,109, and20,394,912 shares 207,514 207,214 209,942 issued andoutstanding as ofDecember31,2021,September30,2021andDecember31,2020,respectivelyRetained earnings 164,283 152,619 114,137 Accumulated othercomprehensive 1,726 4,092 14,507 incomeTotal shareholders? 373,523 363,925 338,586 equityTOTAL LIABILITIESAND SHAREHOLDERS? $ 3,819,585 $ 4,210,316 $ 3,615,617 EQUITY

ATLANTIC CAPITAL BANCSHARES, INC. Consolidated Statements of Income (unaudited) (in thousands,except share Three months ended Year ended and per sharedata) December31, September30, June30, March31, December31, December31, December31, 2021 2021 2021 2021 2020 2021 2020 INTEREST INCOMELoans, $ 22,375 $ 22,151 $ 23,352 $ 21,769 $ 21,609 $ 89,647 $ 85,580 including feesInvestment 4,014 3,920 3,900 3,374 3,000 15,208 11,683 securitiesInterest anddividends on other 541 593 366 267 334 1,767 1,733 interest?earningassetsTotal interest 26,930 26,664 27,618 25,410 24,943 106,622 98,996 incomeINTEREST EXPENSEInterest on 562 789 851 971 1,188 3,173 7,820 depositsInterest onFederal Home ? ? ? ? ? ? 54 Loan BankadvancesInterest onfederal fundspurchased andsecurities ? ? ? ? ? ? 41 sold underagreements torepurchaseInterest on 1,096 1,106 1,107 1,094 1,111 4,403 4,108 long-term debtTotal interest 1,658 1,895 1,958 2,065 2,299 7,576 12,023 expenseNET INTERESTINCOME BEFORE 25,272 24,769 25,660 23,345 22,644 99,046 86,973 PROVISION FORCREDIT LOSSESProvision for (731 ) (2,405 ) (933 ) (4,519 ) 481 (8,588 ) 17,446 credit lossesNET INTERESTINCOME AFTER 26,003 27,174 26,593 27,864 22,163 107,634 69,527 PROVISION FORCREDIT LOSSESNONINTEREST INCOMEService 1,777 1,765 1,727 1,663 1,341 6,932 4,871 chargesGains (losses)on sale of ? ? ? 2 (23 ) 2 (23 ) securitiesGains (losses)on sale of ? 38 ? ? (6 ) 38 (146 ) other assetsDerivatives 5 21 (7 ) 47 11 66 257 income (loss)Bank owned 386 391 388 391 368 1,556 1,460 life insuranceSBA lending 1,451 1,276 1,231 1,225 1,015 5,183 3,104 activitiesOthernoninterest 936 1,118 245 234 310 2,533 762 incomeTotalnoninterest 4,555 4,609 3,584 3,562 3,016 16,310 10,285 incomeNONINTEREST EXPENSESalaries andemployee 10,176 10,290 10,362 10,421 8,437 41,249 34,229 benefitsEmployeeretention ? (3,035 ) ? ? ? (3,035 ) ? creditOccupancy 682 756 778 734 767 2,950 3,183 Equipment and 688 857 819 774 969 3,138 3,337 softwareProfessional 653 737 723 922 686 3,035 2,745 servicesCommunicationsand data 1,011 889 869 792 789 3,561 3,113 processingMarketing andbusiness 145 142 138 108 144 533 517 developmentTravel, mealsand 102 91 47 10 14 250 227 entertainmentFDIC premiums 506 478 421 275 241 1,680 629 Merger andconversion 846 2,899 ? ? ? 3,745 ? costsOthernoninterest 1,154 914 1,040 1,113 1,117 4,221 4,679 expenseTotalnoninterest 15,963 15,018 15,197 15,149 13,164 61,327 52,659 expense INCOME BEFOREPROVISION FOR 14,595 16,765 14,980 16,277 12,015 62,617 27,153 INCOME TAXESProvision for 2,931 3,461 3,164 2,915 2,065 12,471 4,613 income taxesNET INCOME $ 11,664 $ 13,304 $ 11,816 $ 13,362 $ 9,950 $ 50,146 $ 22,540 Net income percommon share - $ 0.57 $ 0.66 $ 0.58 $ 0.66 $ 0.48 $ 2.47 $ 1.06 basicNet income percommon share - $ 0.57 $ 0.65 $ 0.58 $ 0.65 $ 0.48 $ 2.45 $ 1.05 diluted Weightedaverage shares 20,309,415 20,308,761 20,332,503 20,380,066 20,711,089 20,276,717 21,342,086 - basicWeightedaverage shares 20,532,447 20,507,604 20,516,478 20,502,184 20,795,332 20,459,032 21,427,722 - diluted

ATLANTIC CAPITAL BANCSHARES, INC.Average BalanceSheets and Net Interest MarginAnalysisSelectedFinancial Information Three months ended December31,2021 September30,2021 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 $ 476,945 $ 201 0.17 % $ 594,338 $ 266 0.18 % other banksOther short-term 139,094 174 0.50 122,477 156 0.51 investmentsInvestment securities:Taxableinvestment 533,088 2,453 1.83 503,420 2,411 1.90 securitiesNon-taxableinvestment 226,736 1,954 3.42 230,032 1,885 3.25 securities ^(1)Total investment 759,824 4,407 2.30 733,452 4,296 2.32 securitiesLoans 2,302,085 22,375 3.86 2,246,529 22,151 3.91 FHLB and FRB 11,972 166 5.50 11,931 171 5.69 stockTotalinterest-earning 3,689,920 27,323 2.94 3,708,727 27,040 2.89 assetsNon-earning 193,712 184,322 assetsTotal assets $ 3,883,632 $ 3,893,049 Liabilities Interest bearing deposits:NOW, moneymarket, and 1,526,469 453 0.12 1,665,462 680 0.16 savingsTime deposits 287,617 44 0.06 285,808 50 0.07 Brokered 94,271 65 0.27 87,498 59 0.27 depositsTotalinterest-bearing 1,908,357 562 0.12 2,038,768 789 0.15 depositsTotal borrowings ? ? ? ? ? ? Total long-term 74,046 1,096 5.87 73,978 1,106 5.93 debtTotalinterest-bearing 1,982,403 1,658 0.33 2,112,746 1,895 0.36 liabilitiesDemand deposits 1,487,405 1,375,114 Other 44,339 45,889 liabilitiesShareholders? 369,485 359,300 equityTotalliabilities and $ 3,883,632 $ 3,893,049 shareholders?equityNet interest 2.61 % 2.53 % spreadNet interestincome and net $ 25,665 2.76 % $ 25,145 2.69 % interest margin^(2) Non-taxableequivalent net 2.72 % 2.65 %interest margin ^(1) Interest revenue on tax-exempt securities has been increased to reflectcomparable interest on taxable securities. The rate used was 21%, reflecting the 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 of interest-earning asset. ATLANTIC CAPITAL BANCSHARES, INC.Average BalanceSheets and Net Interest MarginAnalysisSelectedFinancial Information Three months ended December31,2021 December31,2020 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 $ 476,945 $ 201 0.17 % $ 435,939 $ 141 0.13 % other banksOther short-term 139,094 174 0.50 ? ? ? investmentsInvestment securities:Taxableinvestment 533,088 2,453 1.83 275,872 1,587 2.29 securitiesNon-taxableinvestment 226,736 1,954 3.42 215,262 1,758 3.25 securities ^(1)Total investment 759,824 4,407 2.30 491,134 3,345 2.71 securitiesLoans 2,302,085 22,375 3.86 2,207,956 21,609 3.89 FHLB and FRB 11,972 166 5.50 12,699 193 6.05 stockTotalinterest-earning 3,689,920 27,323 2.94 3,147,728 25,288 3.20 assetsNon-earning 193,712 180,991 assetsTotal assets $ 3,883,632 $ 3,328,719 Liabilities Interest bearing deposits:NOW, moneymarket, and 1,526,469 453 0.12 1,585,928 1,043 0.26 savingsTime deposits 287,617 44 0.06 221,792 72 0.13 Brokered 94,271 65 0.27 89,673 73 0.32 depositsTotalinterest-bearing 1,908,357 562 0.12 1,897,393 1,188 0.25 depositsTotal borrowings ? ? ? ? ? ? Total long-term 74,046 1,096 5.87 73,811 1,111 5.99 debtTotalinterest-bearing 1,982,403 1,658 0.33 1,971,204 2,299 0.46 liabilitiesDemand deposits 1,487,405 977,009 Other 44,339 41,558 liabilitiesShareholders? 369,485 338,948 equityTotalliabilities and $ 3,883,632 $ 3,328,719 shareholders?equityNet interest 2.61 % 2.73 % spreadNet interestincome and net $ 25,665 2.76 % $ 22,989 2.91 % interest margin^(2) Non-taxableequivalent net 2.72 % 2.86 % interest margin ^(1) Interest revenue on tax-exempt securities has been increased to reflectcomparable interest on taxable securities. The rate used was 21%, reflecting the 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 of interest-earning asset.

ATLANTIC CAPITAL BANCSHARES, INC.Average BalanceSheets and Net Interest MarginAnalysisSelectedFinancial Information Year ended December31,2021 December31,2020 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 $ 580,203 $ 835 0.14 % $ 220,225 $ 897 0.41 % other banksOther short-term 65,930 330 0.50 27 ? ? investmentsInvestment securities:Taxableinvestment 455,466 9,145 2.01 253,799 6,316 2.49 securitiesNon-taxableinvestment 227,501 7,573 3.33 202,623 6,845 3.38 securities ^(1)Total investment 682,967 16,718 2.45 456,422 13,161 2.88 securitiesLoans 2,263,335 89,647 3.96 2,105,930 85,580 4.06 FHLB and FRB 12,129 602 4.96 14,172 836 5.90 stockTotalinterest-earning 3,604,564 108,132 3.00 2,796,776 100,474 3.59 assetsNon-earning 186,479 185,446 assetsTotal assets $ 3,791,043 $ 2,982,222 Liabilities Interest bearing deposits:NOW, moneymarket, and 1,622,596 2,692 0.17 1,444,699 6,931 0.48 savingsTime deposits 284,385 236 0.08 135,309 269 0.20 Brokered 87,676 245 0.28 83,274 620 0.74 depositsTotalinterest-bearing 1,994,657 3,173 0.16 1,663,282 7,820 0.47 depositsTotal borrowings 22 ? ? 37,473 95 0.25 Total long-term 73,940 4,403 5.95 64,162 4,108 6.40 debtTotalinterest-bearing 2,068,619 7,576 0.37 1,764,917 12,023 0.68 liabilitiesDemand deposits 1,324,797 840,421 Other 43,483 39,005 liabilitiesShareholders? 354,144 337,879 equityTotalliabilities and $ 3,791,043 $ 2,982,222 shareholders?equityNet interest 2.63 % 2.91 % spreadNet interestincome and net $ 100,556 2.79 % $ 88,451 3.16 % interest margin^(2) Non-taxableequivalent net 2.75 % 3.11 % interest margin ^(1) Interest revenue on tax-exempt securities has been increased to reflectcomparable interest on taxable securities. The rate used was 21%, reflecting the 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 of interest-earning asset.

ATLANTIC CAPITAL BANCSHARES, INC.Period End Loans Linked YearOver December31, September30, June30, March31, December31, Quarter Year (dollars in 2021 2021 2021 2021 2020 Change Change thousands)Loans held for saleLoans held $ 2,087 $ 11,814 $ ? $ 1,847 $ ? $ (9,727 ) $ 2,087 for saleTotal loans $ 2,087 $ 11,814 $ ? $ 1,847 $ ? $ (9,727 ) $ 2,087 held for sale Loans heldfor investmentCommercial loans:Commercialand $ 863,060 $ 790,437 $ 767,646 $ 735,287 $ 760,645 $ 72,623 $ 102,415 industrial -otherCommercialand 17,919 48,304 105,684 218,766 192,160 (30,385 ) (174,241 ) industrial -PPPCommercial real estate:Multifamily 73,581 62,906 58,632 80,507 66,262 10,675 7,319 Owner 438,630 413,875 392,108 381,018 373,689 24,755 64,941 occupiedInvestment 548,143 483,538 506,230 480,566 469,150 64,605 78,993 Construction and land:1?4 familyresidential 297 2,338 2,074 1,578 1,171 (2,041 ) (874 ) constructionOtherconstruction, 153,639 202,810 178,423 141,218 144,424 (49,171 ) 9,215 development,and landTotalcommercial 2,095,269 2,004,208 2,010,797 2,038,940 2,007,501 91,061 87,768 loans Residential: Residential 45,816 47,076 45,207 31,817 33,783 (1,260 ) 12,033 mortgagesHome equity 27,315 28,943 24,972 26,293 25,443 (1,628 ) 1,872 Totalresidential 73,131 76,019 70,179 58,110 59,226 (2,888 ) 13,905 loans Consumer 197,955 192,462 184,203 203,176 176,066 5,493 21,889 Other 4,733 4,921 5,234 7,689 13,897 (188 ) (9,164 ) 2,371,088 2,277,610 2,270,413 2,307,915 2,256,690 93,478 114,398 Less netdeferred feesand other (3,854 ) (3,754 ) (5,514 ) (7,101 ) (7,654 ) (100 ) 3,800 unearnedincomeTotal loansheld for $ 2,367,234 $ 2,273,856 $ 2,264,899 $ 2,300,814 $ 2,249,036 $ 93,378 $ 118,198 investment Total loans $ 2,369,321 $ 2,285,670 $ 2,264,899 $ 2,302,661 $ 2,249,036 $ 83,651 $ 120,285 Totalunfunded $ 1,079,769 $ 848,642 $ 804,784 $ 789,869 $ 813,757 $ 231,127 $ 266,012 commitments

ATLANTICCAPITAL BANCSHARES,INC.Allowance forCredit Losses Activity and CreditQuality 2021 2020 Fourth Third Second First Fourth(dollars in Quarter Quarter Quarter Quarter Quarterthousands)Allowance for loan lossesBalance atbeginning of $ 23,924 $ 26,123 $ 27,506 $ 31,818 $ 31,894 periodProvision for (1,108 ) (2,221 ) (814 ) (4,074 ) 225 loan lossesLoans charged-off:Commercial and (215 ) (131 ) (386 ) (288 ) (401 ) industrialCommercial ? ? ? ? ? real estateConstruction ? ? ? ? ? and landResidential (501 ) ? (223 ) ? ? mortgagesHome equity ? ? ? ? ? Consumer ? ? ? ? ? Other ? ? ? ? ? Total loans (716 ) (131 ) (609 ) (288 ) (401 ) charged-offRecoveries onloans previouslycharged-off:Commercial and 81 151 6 50 37 industrialCommercial ? ? ? ? 44 real estateConstruction ? ? ? ? 18 and landResidential 3 ? 32 ? ? mortgagesHome equity ? ? ? ? ? Consumer 2 2 2 ? 1 Other ? ? ? ? ? Total 86 153 40 50 100 recoveriesNet $ (630 ) $ 22 $ (569 ) $ (238 ) $ (301 ) charge-offsBalance at $ 22,186 $ 23,924 $ 26,123 $ 27,506 $ 31,818 period end Allowance forunfunded commitmentsBalance atbeginning of $ 2,380 $ 2,565 $ 2,683 $ 3,128 $ 2,871 periodProvision forunfunded 377 (185 ) (118 ) (445 ) 257 commitmentsBalance at $ 2,757 $ 2,380 $ 2,565 $ 2,683 $ 3,128 period end Totalallowance forcredit losses $ 24,943 $ 26,304 $ 28,688 $ 30,189 $ 34,946 - loans andunfundedcommitments Provision forcredit losses under CECLProvision for (1,108 ) (2,221 ) (814 ) (4,074 ) 225 loan lossesProvision forsecuritiesheld to - 1 (1 ) - (1 ) maturitycredit lossesProvision forunfunded 377 (185 ) (118 ) (445 ) 257 commitmentsTotalprovision for $ (731 ) $ (2,405 ) $ (933 ) $ (4,519 ) $ 481 credit losses Non-performing $ 4,153 $ 4,077 $ 5,194 $ 2,056 $ 4,862 loansForeclosedproperties ? ? 16 16 16 (OREO)Totalnonperforming $ 4,153 $ 4,077 $ 5,210 $ 2,072 $ 4,878 assets Allowance forloan losses to 0.94 % 1.05 % 1.15 % 1.20 % 1.41 %loans held forinvestmentAllowance forcredit losses 1.05 % 1.16 % 1.27 % 1.31 % 1.55 %to loans heldfor investmentAllowance forcredit lossesto loans held 1.06 % 1.18 % 1.33 % 1.45 % 1.70 %for investmentexcluding PPPloansNetcharge-offs to 0.11 0.00 0.10 0.04 0.05 average loans^(1)Non-performingloans as a 0.18 % 0.18 % 0.23 % 0.09 % 0.22 %percentage oftotal loansNon-performingassets as a 0.11 % 0.10 % 0.14 % 0.06 % 0.13 %percentage oftotal assets ^(1) Annualized.

ATLANTIC CAPITAL BANCSHARES, INC. Period End Deposits Linked December31, September30, June30, March31, December31, Quarter YearOver (dollars in 2021 2021 2021 2021 2020 Change YearChange thousands)DDA $ 1,471,920 $ 1,691,616 $ 1,374,018 $ 1,280,524 $ 1,033,765 $ (219,696 ) $ 438,155 NOW 648,763 721,525 536,677 485,540 760,638 (72,762 ) (111,875 ) Savings 884 800 676 562 625 84 259 Money market 823,127 930,929 1,026,239 1,142,361 1,030,753 (107,802 ) (207,626 ) Time 288,698 287,865 283,656 294,129 241,328 833 47,370 Brokered 94,510 94,586 84,958 74,576 94,399 (76 ) 111 Total deposits $ 3,327,902 $ 3,727,321 $ 3,306,224 $ 3,277,692 $ 3,161,508 $ (399,419 ) $ 166,394 Average Deposits 2021 2020 Linked Fourth Third Second First Fourth Quarter Q4 2021 vs (dollars in Quarter Quarter Quarter Quarter Quarter Change Q4 2020 thousands)DDA $ 1,487,405 $ 1,375,114 $ 1,295,728 $ 1,136,531 $ 977,009 $ 112,291 $ 510,396 NOW 650,668 607,485 548,358 618,701 558,967 43,183 $ 91,701 Savings 875 731 593 587 614 144 $ 261 Money market 874,926 1,057,246 1,088,423 1,042,809 1,026,347 (182,320 ) $ (151,421 ) Time 287,617 285,808 290,331 273,615 221,792 1,809 $ 65,825 Brokered 94,271 87,498 84,168 84,663 89,673 6,773 $ 4,598 Total deposits $ 3,395,762 $ 3,413,882 $ 3,307,601 $ 3,156,906 $ 2,874,402 $ (18,120 ) $ 521,360 Noninterestbearing depositsas a percentage 43.8 % 40.3 % 39.2 % 36.0 % 34.0 % of averagedepositsCost ofinterest-bearing 0.12 % 0.15 % 0.17 % 0.19 % 0.25 % depositsCost of deposits 0.07 % 0.08 % 0.10 % 0.12 % 0.16 %

ATLANTIC CAPITAL BANCSHARES, INC.Non-GAAP Performance and Financial Measures Reconciliation For the twelve months 2021 2020 ended December31, Fourth Third Second First Fourth (in thousands,except share and Quarter Quarter Quarter Quarter Quarter 2021 2020 per share data) Taxableequivalent interest incomereconciliationInterest $ 26,930 $ 26,664 $ 27,618 $ 25,410 $ 24,943 $ 106,622 $ 98,996 income- GAAPTaxableequivalent 393 376 375 365 345 1,510 1,478 adjustmentInterestincome- taxable $ 27,323 $ 27,040 $ 27,993 $ 25,775 $ 25,288 $ 108,132 $ 100,474 equivalent Taxableequivalent net interest incomereconciliationNet interest $ 25,272 $ 24,769 $ 25,660 $ 23,345 $ 22,644 $ 99,046 $ 86,973 income- GAAPTaxableequivalent 393 376 375 365 345 1,510 1,478 adjustmentNet interestincome- taxable $ 25,665 $ 25,145 $ 26,035 $ 23,710 $ 22,989 $ 100,556 $ 88,451 equivalent Loan yieldexcluding PPP loansreconciliationLoan yield - 3.86 % 3.91 % 4.19 % 3.89 % 3.89 % 3.96 % 4.06 % GAAPImpact of PPP (0.11 ) (0.20 ) (0.24 ) (0.06 ) (0.03 ) (0.15 ) 0.10 loansLoan yieldexcluding PPP 3.75 % 3.71 % 3.95 % 3.83 % 3.86 % 3.81 % 4.16 % loans Taxableequivalent net interest marginreconciliationNet interest 2.72 % 2.65 % 2.87 % 2.76 % 2.86 % 2.75 % 3.11 % margin- GAAPImpact oftaxable 0.04 0.04 0.04 0.05 0.05 0.04 0.05 equivalentadjustmentNet interestmargin- taxable 2.76 % 2.69 % 2.91 % 2.81 % 2.91 % 2.79 % 3.16 % equivalent Taxableequivalent netinterest margin excluding PPPloansreconciliationNet interestmargin- taxable 2.76 % 2.69 % 2.91 % 2.81 % 2.91 % 2.79 % 3.11 % equivalentImpact of PPP (0.08 ) (0.15 ) (0.21 ) (0.11 ) (0.10 ) (0.13 ) 0.07 loansNet interest margin-taxable equivalent 2.68 % 2.54 % 2.70 % 2.70 % 2.81 % 2.66 % 3.18 % excluding PPP loans Taxableequivalentincome before income taxesreconciliationIncome beforeincome taxes- $ 14,595 $ 16,765 $ 14,980 $ 16,277 $ 12,015 $ 62,617 $ 27,153 GAAPTaxableequivalent 393 376 375 365 345 1,510 1,478 adjustmentIncome before $ 14,988 $ 17,141 $ 15,355 $ 16,642 $ 12,360 $ 64,127 $ 28,631 income taxes Taxableequivalentincome tax expensereconciliationIncome tax $ 2,931 $ 3,461 $ 3,164 $ 2,915 $ 2,065 $ 12,471 $ 4,613 expense- GAAPTaxableequivalent 393 376 375 365 345 1,510 1,478 adjustmentIncome tax $ 3,324 $ 3,837 $ 3,539 $ 3,280 $ 2,410 $ 13,981 $ 6,091 expense Tangible bookvalue per common sharereconciliationTotalshareholders? $ 373,523 $ 363,925 $ 353,185 $ 340,328 $ 338,586 $ 373,523 $ 338,586 equityIntangible (19,925 ) (19,925 ) (19,925 ) (19,925 ) (19,925 ) (19,925 ) (19,925 ) assetsTotal tangible $ 353,598 $ 344,000 $ 333,260 $ 320,403 $ 318,661 $ 353,598 $ 318,661 common equityCommon shares 20,334,150 20,305,109 20,319,429 20,354,077 20,394,912 20,334,150 20,394,912 outstandingBook value percommon share- $ 18.37 $ 17.92 $ 17.38 $ 16.72 $ 16.60 $ 18.37 $ 16.60 GAAPTangible book 17.39 16.94 16.40 15.74 15.62 17.39 15.62 value Tangible commonequity to tangible assetsreconciliationTotalshareholders? $ 373,523 $ 363,925 $ 353,185 $ 340,328 $ 338,586 $ 373,523 $ 338,586 equityIntangible (19,925 ) (19,925 ) (19,925 ) (19,925 ) (19,925 ) (19,925 ) (19,925 ) assetsTotal tangible $ 353,598 $ 344,000 $ 333,260 $ 320,403 $ 318,661 $ 353,598 $ 318,661 common equity Total assets $ 3,819,585 $ 4,210,316 $ 3,780,445 $ 3,732,668 $ 3,615,617 $ 3,819,585 $ 3,615,617 Intangible (19,925 ) (19,925 ) (19,925 ) (19,925 ) (19,925 ) (19,925 ) (19,925 ) assetsTotal tangible $ 3,799,660 $ 4,190,391 $ 3,760,520 $ 3,712,743 $ 3,595,692 $ 3,799,660 $ 3,595,692 assetsTangible commonequity to 9.31 % 8.21 % 8.86 % 8.63 % 8.86 % 9.31 % 8.86 % tangible assets Allowance forcredit losses toloans held for investmentreconciliationTotal loans held $ 2,367,234 $ 2,273,856 $ 2,264,899 $ 2,300,814 $ 2,249,036 $ 2,367,234 $ 2,249,036 for investmentPPP loans (17,919 ) (48,304 ) (105,684 ) (218,766 ) (192,160 ) (17,919 ) (192,160 ) Total loans heldfor investment $ 2,349,315 $ 2,225,552 $ 2,159,215 $ 2,082,048 $ 2,056,876 $ 2,349,315 $ 2,056,876 excluding PPPloans Allowance forcredit losses to 1.05 % 1.16 % 1.27 % 1.31 % 1.55 % 1.05 % 1.55 % loans held forinvestmentAllowance forcredit losses toloans held for 1.06 % 1.18 % 1.33 % 1.45 % 1.70 % 1.06 % 1.70 % investmentexcluding PPPloans