Document And Entity Information
Document And Entity Information - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Mar. 09, 2020 | Jun. 28, 2019 | |
Document And Entity Information [Abstract] | |||
Entity Registrant Name | ATLANTIC CAPITAL BANCSHARES, INC. | ||
Entity Central Index Key | 0001461755 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Filer Category | Accelerated Filer | ||
Entity Public Float | $ 330.2 | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | true | ||
Entity Ex Transition Period | false | ||
Entity Shell Company | false | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Document Type | 10-K | ||
Document Period End Date | Dec. 31, 2019 | ||
Document Fiscal Year Focus | 2019 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false | ||
Entity Common Stock, Shares Outstanding | 21,590,313 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | |
ASSETS | |||
Cash and due from banks | [1] | $ 45,249 | $ 42,895 |
Interest-bearing deposits in banks | 421,079 | 216,040 | |
Other short-term investments | 0 | 9,457 | |
Cash and cash equivalents | 466,328 | 268,392 | |
Investment securities available for sale | 282,461 | 402,486 | |
Investment securities held to maturity (fair value $115,291 and $0 at December 31, 2019 and 2018, respectively) | 116,972 | 0 | |
Other investments | 27,556 | 29,236 | |
Loans held for sale | 370 | 5,889 | |
Loans held for sale - discontinued operations | [1] | 0 | 373,030 |
Loans held for investment | [1] | 1,873,524 | 1,728,073 |
Less: Allowance for loan losses | (18,535) | (17,851) | |
Loans held for investment, net | 1,854,989 | 1,710,222 | |
Premises held for sale - discontinued operations | [1] | 0 | 7,722 |
Premises and equipment, net | [1] | 22,536 | 9,779 |
Bank owned life insurance | 66,421 | 65,149 | |
Goodwill - discontinued operations | [1] | 0 | 4,555 |
Goodwill - continuing operations | [1] | 19,925 | 17,135 |
Other intangibles, net | 3,027 | 4,388 | |
Other real estate owned | 278 | 874 | |
Other assets | 49,516 | 56,583 | |
Total assets | 2,910,379 | 2,955,440 | |
Deposits: | |||
Noninterest-bearing demand | [1] | 824,646 | 602,252 |
Interest-bearing checking | [1] | 373,727 | 252,490 |
Savings | [1] | 1,219 | 725 |
Money market | [1] | 1,173,218 | 987,183 |
Time | [1] | 44,389 | 10,623 |
Brokered deposits | 81,847 | 99,241 | |
Deposits to be assumed - discontinued operations | [1] | 0 | 585,429 |
Total deposits | 2,499,046 | 2,537,943 | |
Securities sold under agreements to repurchase - discontinued operations | [1] | 0 | 6,220 |
Long-term debt | 49,873 | 49,704 | |
Other liabilities | 34,965 | 37,920 | |
Total liabilities | 2,583,884 | 2,631,787 | |
SHAREHOLDERS’ EQUITY | |||
Preferred Stock, no par value - 10,000,000 shares authorized; no shares issued and outstanding as of December 31, 2019 and December 31, 2018 | 0 | 0 | |
Common stock, no par value - 100,000,000 shares authorized; 21,751,026 and 25,290,419 shares issued and outstanding as of December 31, 2019 and December 31, 2018, respectively | 230,265 | 291,771 | |
Retained earnings | 91,669 | 42,187 | |
Accumulated other comprehensive income (loss) | 4,561 | (10,305) | |
Total shareholders’ equity | 326,495 | 323,653 | |
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY | $ 2,910,379 | $ 2,955,440 | |
[1] | Assets and liabilities related to the sale of Tennessee and northwest Georgia banking operations were classified as held for sale as of December 31, 2018. |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Statement of Financial Position [Abstract] | ||
Investment securities held-to-maturity, fair value | $ 115,291 | $ 0 |
Preferred stock authorized (in shares) | 10,000,000 | 10,000,000 |
Preferred stock issued (in shares) | 0 | 0 |
Preferred stock outstanding (in shares) | 0 | 0 |
Common stock authorized (in shares) | 100,000,000 | 100,000,000 |
Common stock issued (in shares) | 21,751,026 | 25,290,419 |
Common stock outstanding (in shares) | 21,751,026 | 25,290,419 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
INTEREST INCOME | |||
Loans, including fees | $ 93,022,000 | $ 80,110,000 | $ 64,436,000 |
Investment securities | 9,559,000 | 10,912,000 | 9,181,000 |
Interest and dividends on other interest-earning assets | 3,266,000 | 3,738,000 | 2,201,000 |
Total interest income | 105,847,000 | 94,760,000 | 75,818,000 |
INTEREST EXPENSE | |||
Interest on deposits | 20,392,000 | 12,506,000 | 7,934,000 |
Interest on Federal Home Loan Bank advances | 817,000 | 2,399,000 | 1,536,000 |
Interest on federal funds purchased and securities sold under agreements to repurchase | 479,000 | 304,000 | 222,000 |
Interest on long-term debt | 3,295,000 | 3,304,000 | 3,294,000 |
Total interest expense | 24,983,000 | 18,513,000 | 12,986,000 |
NET INTEREST INCOME BEFORE PROVISION FOR LOAN LOSSES | 80,864,000 | 76,247,000 | 62,832,000 |
Provision for loan losses | 2,712,000 | 1,946,000 | 3,218,000 |
NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES | 78,152,000 | 74,301,000 | 59,614,000 |
NONINTEREST INCOME | |||
Service charges | 3,587,000 | 3,215,000 | 2,734,000 |
Gain (loss) on sales of securities | 907,000 | (1,855,000) | (63,000) |
Gain (loss) on sales of other assets | 127,000 | (154,000) | 742,000 |
Trust income | 1,025,000 | 1,814,000 | |
Derivatives (loss) income | (322,000) | 308,000 | 156,000 |
Bank owned life insurance | 1,546,000 | 1,506,000 | 1,530,000 |
SBA lending activities | 4,178,000 | 3,606,000 | 4,129,000 |
Gain on sale of trust business | 0 | 1,681,000 | 0 |
Other noninterest income | 702,000 | 715,000 | 1,137,000 |
Total noninterest income | 10,725,000 | 10,047,000 | 12,179,000 |
NONINTEREST EXPENSE | |||
Salaries and employee benefits | 34,537,000 | 31,766,000 | 33,130,000 |
Occupancy | 2,888,000 | 2,972,000 | 2,516,000 |
Equipment and software | 3,103,000 | 2,817,000 | 2,341,000 |
Professional services | 2,908,000 | 3,511,000 | 4,591,000 |
Postage, printing and supplies | 137,000 | 166,000 | 244,000 |
Communications and data processing | 3,199,000 | 2,676,000 | 2,625,000 |
Marketing and business development | 845,000 | 710,000 | 798,000 |
FDIC premiums | 217,000 | 562,000 | 697,000 |
Merger and conversion costs | 304,000 | ||
Other noninterest expense | 5,274,000 | 4,811,000 | 5,588,000 |
Total noninterest expense | 53,108,000 | 49,991,000 | 52,834,000 |
INCOME FROM CONTINUING OPERATIONS BEFORE PROVISION FOR INCOME TAXES | 35,769,000 | 34,357,000 | 18,959,000 |
Provision for income taxes | 7,611,000 | 6,307,000 | 23,715,000 |
NET INCOME (LOSS) FROM CONTINUING OPERATIONS | 28,158,000 | 28,050,000 | (4,756,000) |
Income from discontinued operations | 28,690,000 | 643,000 | 1,689,000 |
Provision for income taxes | 6,993,000 | 161,000 | 659,000 |
Net income from discontinued operations | 21,697,000 | 482,000 | 1,030,000 |
NET INCOME (LOSS) | $ 49,855,000 | $ 28,532,000 | $ (3,726,000) |
Net income (loss) per common share ‑ basic | |||
Net income (loss) per common share - continuing operations (in dollars per share) | $ 1.21 | $ 1.08 | $ (0.19) |
Net income per common share - discontinued operations (in dollars per share) | 0.93 | 0.02 | 0.04 |
Net income (loss) per Common share ‑ basic (in dollars per share) | 2.14 | 1.10 | (0.15) |
Net income (loss) per common share ‑ diluted | |||
Net income (loss) per common share - continuing operations (in dollars per share) | 1.20 | 1.07 | (0.19) |
Net income per common share - discontinued operations (in dollars per share) | 0.92 | 0.02 | 0.04 |
Net income (loss) per common share ‑ diluted (in dollars per share) | $ 2.12 | $ 1.09 | $ (0.15) |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Consolidated Statements of Comprehensive Income (Loss) | |||
Net income | $ 49,855 | $ 28,532 | $ (3,726) |
Unrealized gains (losses) on available-for-sale securities: | |||
Unrealized holding gains (losses) arising during the period, net of tax of $3,974, ($2,018), and $1,491, respectively | 11,914 | (6,052) | 2,385 |
Reclassification adjustment for losses (gains) included in net income net of tax of ($227), $464, and $70, respectively | (680) | 1,391 | 111 |
Unrealized gains (losses) on available-for-sale securities, net of tax | 11,234 | (4,661) | 2,496 |
Cash flow hedges: | |||
Net unrealized derivative gains (losses) on cash flow hedges, net of tax of $1,211, ($313), and ($457), respectively | 3,632 | (941) | (730) |
Changes from cash flow hedges | 3,632 | (941) | (730) |
Other comprehensive income (loss), net of tax | 14,866 | (5,602) | 1,766 |
Comprehensive income (loss) | $ 64,721 | $ 22,930 | $ (1,960) |
Consolidated Statements of Co_2
Consolidated Statements of Comprehensive Income (Loss) (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Consolidated Statements of Comprehensive Income (Loss) | |||
Tax portion of unrealized holding gains arising during the period | $ 3,974 | $ (2,018) | $ 1,491 |
Tax portion of reclassification adjustment for gains included in net income | (227) | 464 | 70 |
Tax portion of net unrealized derivative (losses) gains on cash flow hedges | $ 1,211 | $ (313) | $ (457) |
Consolidated Statements of Shar
Consolidated Statements of Shareholders’ Equity - USD ($) $ in Thousands | Common Stock | Retained Earnings | Accumulated other comprehensive income (loss) | Total |
Beginning balance at Dec. 31, 2016 | $ 292,747 | $ 16,536 | $ (5,625) | $ 303,658 |
Beginning balance (in shares) at Dec. 31, 2016 | 25,093,135 | |||
Comprehensive income: | ||||
Net income | (3,726) | (3,726) | ||
Change in unrealized gains (losses) on investment securities available-for-sale, net | 2,496 | 2,496 | ||
Change in unrealized gains (losses) on derivatives | (730) | (730) | ||
Comprehensive income (loss) | (1,960) | |||
Net issuance of restricted stock (in shares) | 71,974 | |||
Issuance of common stock for option exercises | $ 3,567 | $ 3,567 | ||
Issuance of common stock for option exercises (in shares) | 486,001 | 724,912 | ||
Issuance of common stock for long-term incentive plan | $ 1,209 | $ 1,209 | ||
Issuance of common stock for long-term incentive plan (in shares) | 61,799 | |||
Restricted stock activity | $ 810 | 810 | ||
Stock-based compensation | 1,141 | 1,141 | ||
Ending balance at Dec. 31, 2017 | $ 299,474 | 12,810 | (3,859) | 308,425 |
Ending balance (in shares) at Dec. 31, 2017 | 25,712,909 | |||
Comprehensive income: | ||||
Net income | 28,532 | 28,532 | ||
Reclassification of tax effects from AOCI | 844 | (844) | ||
Change in unrealized gains (losses) on investment securities available-for-sale, net | (4,661) | (4,661) | ||
Change in unrealized gains (losses) on derivatives | (941) | (941) | ||
Comprehensive income (loss) | 22,930 | |||
Net issuance of restricted stock (in shares) | 68,730 | |||
Issuance of common stock for option exercises | $ 4,097 | $ 4,097 | ||
Issuance of common stock for option exercises (in shares) | 292,039 | 310,016 | ||
Issuance of common stock for long-term incentive plan | $ 687 | $ 687 | ||
Issuance of common stock for long-term incentive plan (in shares) | 38,841 | |||
Restricted stock activity | $ 1,158 | 1,158 | ||
Stock-based compensation | 242 | 242 | ||
Performance share compensation | 290 | 290 | ||
Stock repurchases | $ (14,177) | $ (14,177) | ||
Stock repurchases (in shares) | (822,100) | (822,100) | ||
Ending balance at Dec. 31, 2018 | $ 291,771 | 42,187 | (10,305) | $ 323,653 |
Ending balance (in shares) at Dec. 31, 2018 | 25,290,419 | 25,290,419 | ||
Comprehensive income: | ||||
Change in accounting principle | 1 | $ 1 | ||
Net income | 49,855 | 49,855 | ||
Change in unrealized gains (losses) on investment securities available-for-sale, net | 11,234 | 11,234 | ||
Change in unrealized gains (losses) on derivatives | 3,632 | 3,632 | ||
Comprehensive income (loss) | 64,721 | |||
Net issuance of restricted stock (in shares) | 49,702 | |||
Issuance of common stock for option exercises | $ 1,153 | $ 1,153 | ||
Issuance of common stock for option exercises (in shares) | 70,129 | 90,330 | ||
Issuance of common stock for long-term incentive plan | $ 655 | $ 655 | ||
Issuance of common stock for long-term incentive plan (in shares) | 35,678 | |||
Restricted stock activity | $ 908 | 908 | ||
Stock-based compensation | 169 | 169 | ||
Performance share compensation | 422 | 422 | ||
Stock repurchases | $ (64,813) | $ (64,813) | ||
Stock repurchases (in shares) | (3,694,902) | (3,694,902) | ||
Ending balance at Dec. 31, 2019 | $ 230,265 | 91,669 | $ 4,561 | $ 326,495 |
Ending balance (in shares) at Dec. 31, 2019 | 21,751,026 | 21,751,026 | ||
Comprehensive income: | ||||
Change in accounting principle | $ (373) | $ (373) |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
OPERATING ACTIVITIES | |||
Net income (loss) from continuing operations | $ 28,158 | $ 28,050 | $ (4,756) |
Net income from discontinued operations, net of tax | 21,697 | 482 | 1,030 |
Adjustments to reconcile net income to net cash provided by operating activities | |||
Provision for loan losses | 2,712 | 1,946 | 3,218 |
Depreciation, amortization, and accretion | 3,361 | 4,671 | 5,287 |
Amortization of operating lease right-of-use assets | 2,004 | ||
Amortization of restricted stock and performance share compensation | 1,330 | 1,448 | 810 |
Stock option compensation | 169 | 242 | 1,141 |
Deferred income tax expense (benefit) | 10,381 | 2,226 | 24,241 |
(Gain) loss on sales of available-for-sale securities | (907) | 1,855 | 63 |
(Gain) loss on disposition of premises and equipment, net | 27 | 214 | 359 |
Net write downs and (gains) losses on sales of other real estate owned | (154) | 222 | (288) |
Small Business Investment Company (SBIC) impairment | 26 | 228 | 0 |
Gain on sale of tax credit | (426) | ||
Net increase in cash value of bank owned life insurance | (1,474) | (1,482) | (1,507) |
(Gain) on bank owned life insurance | (46) | 0 | 0 |
Net (gains) on sale of branches | (34,475) | 0 | (302) |
Net (gain) on sale of trust business | 0 | (1,681) | 0 |
Origination of servicing assets | (1,226) | (823) | (1,022) |
Proceeds from sales of SBA loans | 68,748 | 56,620 | 47,135 |
Net (gains) on sale of SBA loans | (3,594) | (3,089) | (3,045) |
Changes in operating assets and liabilities - | |||
Net change in loans held for sale | 5,519 | (776) | 9,374 |
Net change in operating lease right-of-use assets | (3,883) | ||
Net (increase) decrease in other assets | (2,385) | 6,511 | (8,217) |
Net decrease in accrued expenses and other liabilities | (13,410) | 720 | 12,089 |
Net cash provided by operating activities | 82,578 | 97,584 | 85,184 |
Activity in securities available-for-sale: | |||
Prepayments | 40,342 | 50,380 | 47,393 |
Maturities and calls | 5,430 | 365 | 5,894 |
Sales | 116,963 | 62,087 | 19,238 |
Purchases | (28,282) | (77,036) | (173,391) |
Activity in securities held to maturity: | |||
Purchases | (117,043) | ||
Net change in loans held for investment | (212,730) | (270,097) | (52,266) |
Net change in assets held for sale - discontinued operations | (11,789) | 42,412 | 50,774 |
(Purchases) proceeds of Federal Home Loan Bank stock, net | (58) | 1,766 | 2,679 |
(Purchases) proceeds of Federal Reserve Bank stock, net | (92) | (114) | (102) |
Proceeds from bank owned life insurance benefits | 248 | 0 | 0 |
Proceeds from sales of other real estate | 847 | 496 | 1,403 |
Net cash received (paid) for branch divestiture | (166,755) | 0 | 5,379 |
Proceeds from sale of premises and equipment | 2 | ||
(Purchases) of premises and equipment, net | (1,155) | (7,884) | (2,112) |
Net cash (used in) investing activities | (374,074) | (197,623) | (95,111) |
FINANCING ACTIVITIES | |||
Net change in deposits | 546,532 | 87,379 | 289,897 |
Net change in liabilities to be assumed - discontinued operations | 6,560 | 6,119 | (54,248) |
Proceeds from Federal Home Loan Bank advances | 738,000 | 1,435,100 | 1,734,000 |
Repayments of Federal Home Loan Bank advances | (738,000) | (1,480,100) | (1,799,000) |
Proceeds from exercise of stock options | 1,153 | 4,096 | 3,567 |
Repurchase of common stock | (64,813) | (14,177) | 0 |
Net cash (provided by) financing activities | 489,432 | 38,417 | 174,216 |
NET CHANGE IN CASH AND CASH EQUIVALENTS | 197,936 | (61,622) | 164,289 |
CASH AND CASH EQUIVALENTS – beginning of period | 268,392 | 330,014 | 165,725 |
CASH AND CASH EQUIVALENTS – end of period | 466,328 | 268,392 | 330,014 |
SUPPLEMENTAL SCHEDULE OF CASH FLOWS | |||
Interest paid | 26,960 | 22,562 | 15,212 |
Income taxes paid | $ 2,190 | $ 270 | $ 898 |
Accounting Policies and Basis o
Accounting Policies and Basis of Presentation | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies and Basis of Presentation | |
Accounting Policies and Basis of Presentation | NOTE 1 – ACCOUNTING POLICIES AND BASIS OF PRESENTATION Basis of Presentation The accounting and financial reporting policies of Atlantic Capital Bancshares, Inc. (“Atlantic Capital”) and its subsidiary conform to accounting principles generally accepted in the United States of America (“GAAP”) and general banking industry practices. All material intercompany balances and transactions have been eliminated. In management’s opinion, all accounting adjustments necessary to accurately reflect the financial position and results of operations on the accompanying financial statements have been made. These adjustments are normal and recurring accruals considered necessary for a fair and accurate presentation. Certain prior period amounts have been reclassified to conform to the current year presentation. As discussed in Note 3 - Divestitures and Discontinued Operations, prior periods presented in the consolidated statements of operations as well as the related note disclosures covering income and expense amounts have been retrospectively adjusted for the impact of discontinued operations for comparative purposes. The consolidated balance sheets and related note disclosures for prior periods also reflect the reclassification of certain assets and liabilities related to discontinued operations to held for sale. Significant Accounting Policies Cash and Cash Equivalents Cash and cash equivalents include cash and due from banks, interest-bearing deposits in other banks, commercial paper, federal funds sold and reverse repurchase agreements. Generally, cash and cash equivalents have maturities of three months or less and, accordingly, the carrying amount of these instruments is deemed to be a reasonable estimate of fair value. Reverse repurchase agreements are not subject to netting and offset with repurchase agreements. Investment Securities Investment securities designated as available-for-sale are stated at fair value. Investment securities available-for-sale include securities that may be sold in response to changes in interest rates, changes in prepayment risk, liquidity needs, or for other purposes. Held-to-maturity securities are recorded at cost, adjusted for the amortization or accretion of premiums or discounts. Interest income and dividends on securities are recognized in interest income on an accrual basis. Premiums and discounts on debt securities are amortized or accreted over the life of the related security as an adjustment of the yield. Realized gains and losses are included in earnings and the cost of securities sold is derived using the specific identification method. Unrealized gains and losses, net of the related tax effect, on securities available-for-sale are excluded from earnings and are reported as a separate component of shareholders’ equity. Securities are reviewed for other-than-temporary impairment (“OTTI”). A security is considered to be impaired if the fair value is less than its amortized cost basis at the measurement date. The Company determines whether a decline in fair value below the amortized cost basis is other-than-temporary. The Company determines whether it has the intent to sell the debt security or whether it is more likely than not that it will be required to sell the debt security before the recovery of its amortized cost basis. If either of these conditions is met, the Company must recognize the entire impairment in the Consolidated Statements of Operations and write the debt security down to fair value. For debt securities which the Company does not expect to recover the entire amortized cost basis of the security and which do not meet either condition, an OTTI loss is considered to have occurred. The credit loss portion of impairment is recorded as a realized loss in the Consolidated Statements of Operations and the temporary impairment related to all other factors is recorded in accumulated other comprehensive income, a component of shareholders’ equity. Federal Home Loan Bank Stock/Federal Reserve Bank Stock The Company holds stock in the Federal Home Loan Bank of Atlanta (“FHLB”) and Federal Reserve Bank (“FRB”). The Company accounts for the stock based on the industry guidance in Accounting Standard Codification 325‑942, Investments - Other , which requires the investment be carried at cost and be evaluated for impairment based on the ultimate recoverability of the par value. The Company evaluated its holdings in FHLB and FRB stock at December 31, 2019 and 2018, and believes its holdings in the stock are ultimately recoverable at par. Discontinued Operations Portions of the Company that were disposed of by sale, and that represented a strategic shift that had a major effect on operations and financial results, were accounted for as discontinued operations. Additional information on discontinued operations can be found in Note 3 - Divestitures and Discontinued Operations. Loans Loans Held for Investment Loans are stated at the amount of unpaid principal, net of the allowance for loan losses, deferred income (net of deferred costs) and other unearned income. Interest income on loans is recognized using the effective yield method on the daily balances of the principal amount outstanding. Loan origination fees, net of direct loan origination costs, commitment fees, premiums and discounts are deferred and amortized as an adjustment to yield over the life of the loan, or over the commitment period, as applicable. Loans are considered to be past due when payment is not received from the borrower by the contractually specified due date. Interest accruals on loans are discontinued when interest or principal has been in default 90 days or more, unless the loan is secured by collateral that is sufficient to repay the debt in full and the loan is in the process of collection. When a loan is placed on nonaccrual status, interest accrued and not paid in the current accounting period is reversed against current period income. Interest accrued and not paid in prior periods, if significant, is reversed against the allowance for loan losses. Income on such loans is subsequently recognized on a cash basis as long as the future collection of principal is deemed probable or after all principal payments are received. Commercial loans are placed back on accrual status after sustained performance of timely and current principal and interest payments and it is probable that all remaining amounts due, both principal and interest, are fully collectible according to the terms of the loan agreement. Residential loans and consumer loans are generally placed back on accrual status when they are no longer past due. A loan is considered to be impaired when, based on current information and events, it is probable that all amounts due according to the contractual terms of the loan agreement will not be collected. A specific allowance is established for individually evaluated impaired loans as needed. Reserves on impaired loans are measured based on the present value of expected future cash flows discounted at the loan’s effective interest rate or the observable market price, or the fair value of the underlying collateral of the loan if the loan is collateral dependent. The Company evaluates loans in accordance with the provisions within the Financial Accounting Standards Board (“FASB”) ASC 310‑40, Troubled Debt Restructurings by Creditors . Troubled debt restructurings (“TDRs”) are loans in which the Company has modified the terms and granted an economic concession to a borrower who is experiencing financial difficulties. These modifications may include interest rate reductions, term extensions and other concessions intended to minimize losses. Typically, loans accruing interest at the time of the modification remain on accrual status and are subject to the Company’s charge-off and nonaccrual policies. Loans on nonaccrual prior to modification remain on nonaccrual. TDRs may be returned to accrual status as outlined above. Interest income recognition on impaired loans is dependent upon nonaccrual status and loan type as discussed above. During the year ended December 31, 2015, the Company acquired loans through a business combination. Certain loans showed evidence of credit deterioration (see discussion below). A majority of the acquired loans did not show signs of credit deterioration and were accounted for under ASC 310‑20. As such, the difference between the fair value and the unpaid principal balance of loans at acquisition is accreted into interest income over the life of the loan. In the third quarter of 2012, the Bank entered into a sub-participation agreement with a commercial bank (the participating bank), whereby pursuant to the sub-participation agreement, the Bank purchases participation interests in single-family mortgage loans from the participating bank that has purchased ownership interests from unaffiliated mortgage originators that seek funding to facilitate the origination of single-family residential mortgage loans for sale in the secondary market. The originators underwrite and close mortgage loans consistent with established standards of approved investors and, once the sales close, the originators and the participating bank deliver the loans to the investors. Typically, the participating bank purchases up to an aggregate of a 99% ownership interest with the originators retaining the remaining 1% interest. The Bank typically purchases a 40% or less interest in the mortgage warehouse loans from the participating bank. These loans are held for short periods, usually less than 30 days. These mortgage warehouse loans are classified as held for investment as of December 31, 2019, and 2018. Loans Held for Sale The Company had loans held-for-sale related to branch divestitures and also, at times, will have loans held for sale in connection with the SBA department. Loans held-for-sale are carried at lower of cost or market on an individual loan basis. Held-for-investment loans that have been transferred to held-for-sale are carried at lower of cost or fair value. Fair value is determined from observable current market prices. The credit component of any charge-off upon transfer to held-for-sale is reflected in the allowance for loan losses. Purchased Loans With Evidence of Credit Deterioration During the year ended December 31, 2015, Atlantic Capital purchased loans through a business combination transaction. Some of those purchased loans showed evidence of credit deterioration since origination and are accounted for pursuant to ASC 310‑30, Loans and Debt Securities Acquired with Deteriorated Credit Quality . These purchased credit impaired (“PCI”) loans are recorded at their estimated fair value at date of purchase. PCI loans are aggregated into pools of loans based on common risk characteristics such as the type of loan, payment status, or collateral type. Atlantic Capital estimates the amount and timing of expected cash flows for each purchased loan pool and the expected cash flows in excess of the fair value of the loans are recorded as interest income over the remaining life of the pool (accretable yield). The excess of the pool’s contractual principal and interest over expected cash flows is not recorded (nonaccretable difference). At least quarterly and over the life of the loan pool, expected cash flows continue to be estimated. Increases in estimated cash flows are recognized on a prospective basis as interest income over the remaining life of the loan. Decreases in expected cash flows result in the recognition of a provision for loan loss. As of December 31, 201 8, PCI loans were reclassified to held for sale and subsequently sold in the Branch Sale. Allowance for Loan Losses The allowance for loan losses is established through the provision for loan losses charged against earnings and is maintained at a level that management considers adequate to absorb losses inherent in the portfolio. The allowance for loan losses framework has two basic elements: specific allowances for loans individually evaluated for impairment and a general allowance for pools of loans with similar characteristics not individually evaluated. This analysis includes the evaluation of impaired loans as prescribed under the Receivables Topic of the FASB ASC, as well as pooled loans as prescribed under the Contingencies Topic of the FASB ASC. Management’s evaluation of the allowance considers changes in the nature and volume of the portfolio, historic charge-offs, adequacy of collateral, delinquency trends, loan concentrations, economic conditions, changes in policies and procedures, changes in lending management, changes in loan review system and other factors considered necessary to maintain the allowance at an adequate level. Loans are charged against the allowance for loan losses when management believes that the collection of the principal is unlikely and the loss is quantifiable. Subsequent recoveries, if any, are credited to the allowance in the period received. The allowance for loans losses for acquired performing loans is evaluated at each reporting date subsequent to acquisition and the allowance is determined using a methodology similar to that described above. Management believes that the allowance for loan losses is appropriate and adequate. While management uses available information to estimate the inherent losses at each balance sheet date, future changes to the allowance may be necessary based on changes in economic conditions. In addition, various regulatory agencies, as an integral part of their examination process, periodically review the Bank’s allowance for losses on loans. Premises and Equipment, Net Land is carried at cost. Other premises and equipment are stated at cost, less accumulated depreciation. Depreciation is computed using the straight-line method over the estimated useful lives of the respective assets. In general, estimated lives for buildings and improvements are up to 40 years, furniture and equipment useful lives range from one to ten years, and the lives of leasehold improvements range from ten to eleven years. Expenditures for major improvements of the Company’s premises and equipment are capitalized and depreciated over their estimated useful lives. Major additions and improvements are charged to the asset accounts while maintenance and repairs that do not improve or extend the useful lives of the assets are charged to expense as incurred. When assets are retired or otherwise disposed of, the cost and related accumulated depreciation are removed from the accounts, and any gain or loss is reflected in the results of operations for the period. The Company determines if a lease is present at the inception of an agreement. Operating leases are capitalized at commencement and are discounted using the Company’s FHLB borrowing rate for a similar term borrowing unless the lease defines an implicit rate within the contract. Leases with original terms of less than 12 months are not capitalized. Right-of-use assets represent the Company’s right to use an underlying asset for the lease term and lease liabilities represent the obligation to make lease payments arising from the lease. Operating lease right-of-use assets and operating lease liabilities are recognized on the lease commencement date based on the present value of lease payments over the lease term. No significant judgments or assumptions were involved in developing the estimated operating lease liabilities as the Company’s operating lease liabilities largely represent future rental expenses associated with operating leases and the borrowing rates are based on publicly available interest rates. The lease term includes options to extend or terminate the lease. These options to extend or terminate are assessed on a lease-by-lease basis and adjustments are made to the right-of-use asset and lease liability if the Company is reasonably certain that an option will be exercised and will be expensed on a straight-line basis. Right-of-use assets and lease liabilities arising from operating leases are included within premises and equipment, net and other liabilities, respectively, on the Consolidated Balance Sheets. See Note 7 – Premises and Equipment for additional information on leases. Goodwill and Other Intangible Assets Goodwill is an asset representing the future economic benefits from other assets acquired that are not individually identified and separately recognized. Goodwill is measured as the excess of the consideration transferred, net of the fair value of identifiable assets acquired and liabilities assumed at the acquisition date. Goodwill is not amortized, but instead is tested for impairment annually or more frequently if events or circumstances exist that indicate a goodwill impairment test should be performed. Other intangible assets, which are initially recorded at fair value, consist of core deposit intangible assets resulting from Atlantic Capital’s acquisition of First Security. Core deposit intangible assets are amortized on a sum-of-all-months basis over their estimated useful lives. The Company evaluates its other intangible assets for impairment whenever events or changes in circumstances indicate the carrying amount of the asset may not be recoverable. Other Real Estate Owned Assets acquired through, or in lieu of, loan foreclosure are held for sale and are initially recorded at the lower of the loan balance or fair value at the date of foreclosure, less estimated costs to sell. Any difference between the initial cost basis and the carrying value of the loan is charged to the allowance for loan losses at the date of the transfer to other real estate owned. Subsequent to foreclosure, any further declines in value of the assets are recorded as adjustments to the asset’s carrying amount and reported in noninterest expense, along with costs related to holding the properties, in the Consolidated Statements of Operations. Servicing Rights The Company sells certain loans to third parties. All such transfers are accounted for as sales by the Company. Gains or losses upon sale are recorded in noninterest income. The Company records a separate servicing asset for the loans when the servicing is retained and the expected servicing income is more than adequate compensation for providing the servicing. This asset represents the right or obligation to service the loans and receive a fee in compensation. Servicing assets are initially recorded at their fair value as a component of the sale proceeds. The fair value of the servicing assets is based on an analysis of discounted cash flows that incorporates estimates of (1) market servicing costs, (2) market-based prepayment rates, and (3) market profit margins. The Company has elected to subsequently measure the servicing assets under the amortization method and measured for impairment on a quarterly basis. The rate of prepayment of loans serviced is the most significant estimate involved in the measurement process. Estimates of prepayment rates are based on market participant’s expectations of future prepayment rates, reflecting the Company’s historical rate of loan repayments if consistent with market participant assumptions, industry trends, and other considerations. Actual prepayment rates may differ from those projected by management due to changes in a variety of economic factors, including prevailing interest rates and the availability of alternative financing sources to borrowers. If actual prepayments of the loans being serviced were to occur more quickly than projected, an impairment could exist, and the carrying value of servicing assets may require a write-down through a charge to earnings in the current period. Accordingly, the servicing assets actually realized, could differ from the amounts initially recorded. Bank Owned Life Insurance The Bank has purchased life insurance policies on certain key personnel. Bank owned life insurance is recorded at the amount that can be realized under the insurance contract at the balance sheet date, which is the cash surrender value adjusted for other charges or other amounts due that are probable at settlement. Segment Reporting Atlantic Capital considers its operations to be a single business segment as defined in ASC 280, Segment Reporting . The Company has determined that its lending divisions meet the aggregation criteria of ASC 280 as the products and services, nature of the production processes, types of customers, methods used to distribute products and services and the regulatory environment are sufficiently similar to aggregate their results. Income Taxes The provision for income taxes is based on income and expense reported for financial statement purposes after adjustments for permanent differences. Deferred tax assets and liabilities are recorded for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Future tax benefits, such as net operating loss carryforwards, are recognized to the extent that realization of such benefits is more likely than not. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which the assets and liabilities are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income tax expense in the period that includes the enactment date. A valuation allowance is provided when it is deemed more likely than not that some portion, or all, of the deferred tax asset will not be realized. In assessing the ability to realize the deferred tax assets, management considers the four possible sources of taxable income including future reversals of existing taxable temporary differences, future taxable income, taxable income in prior carryback years and tax-planning strategies that would be implemented to utilize the loss carryforwards prior to expiration. A tax position is recognized as a benefit only if it is more-likely-than-not that the tax position would be sustained in a tax examination, with a tax examination being presumed to occur. The amount recognized is the largest amount of tax benefit that is greater than 50% likely of being realized on examination. Atlantic Capital files its income tax returns on a consolidated basis. For additional information, see, Note 14 - Income Taxes. Stock-Based Compensation Atlantic Capital sponsors a stock-based compensation plan, which is described more fully in Note 15 - Employee and Director Benefit Plans. Compensation cost is recognized for stock options and restricted stock awards issued to employees and directors, based on the fair value of these awards at the date of grant. A Black-Scholes model is utilized to estimate the fair value of stock options, while the price of the Company’s common stock at the date of grant is used for restricted stock awards. Compensation expense for performance share awards are based on the fair value of Atlantic Capital’s stock at the grant date adjusted for market conditions, as well as the subsequent achievement of performance conditions. The total cost of the Company’s stock-based awards is recognized as expense on a straight-line basis over the vesting periods of the awards. Earnings Per Share Basic earnings per share are computed by dividing net income available to common shareholders by the weighted-average number of common shares outstanding during each period. Diluted earnings per share are based on the weighted-average number of common shares outstanding during each period, plus common share equivalents calculated for stock options outstanding using the treasury stock method. When a net loss is recognized for the period, diluted earnings per share is calculated in the same manner as basic earnings per share. Off-Balance Sheet Financial Instruments In the ordinary course of business, the Bank has entered into off-balance sheet financial instruments consisting of commitments to extend credit and letters of credit. Such financial instruments are recorded in the financial statements when they are funded. Fair Value Certain assets and liabilities are measured at fair value on a recurring basis. Examples of these include available-for-sale securities and derivative instruments. Fair value is used on a nonrecurring basis when assets are evaluated for impairment; the basis for accounting is lower of cost or market or fair value for disclosure purposes. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. ASC 820, Fair Value Measurements and Disclosures , defines fair value, establishes a framework for measuring fair value, and expands disclosures about fair value measurements. For additional information, see Note 18 - Fair Value Measurements. Derivative Financial Instruments The Company follows the guidance under ASC 815, Derivatives and Hedging , and records all derivatives on the Consolidated Balance Sheets at fair value. For derivatives designated as qualifying cash flow hedging relationships, the change in fair value of the effective portion is accounted for in other comprehensive income. For all other derivatives not designated as qualifying hedging relationships, changes in market value are recognized directly into earnings. For additional information, see Note 16 - Derivatives and Hedging. Branch Assets Held for Sale and Liabilities to be Assumed On April 5, 2019, Atlantic Capital completed the sale of all 14 of its bank branches located in Tennessee and northwest Georgia, including its mortgage banking business, to FirstBank (the “Branch Sale”). These branches were acquired from First Security and consisted of loans, premises and deposits that were considered to be held for sale as of December 31, 2018. They were carried at the lower of cost or fair value. Going Concern Assessment I n August 2014, the FASB issued ASU 2014‑15, “Presentation of Financial Statements - Going Concern (Subtopic 205‑40 - Disclosure of Uncertainties about and Entity’s Ability to Continue as a Going Concern .” This guidance requires management to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about an entity’s ability to continue as a going concern within one year after the date that the financial statements are issued or available to be issued. No conditions or events, considered in the aggregate, raise substantial doubt about Atlantic Capital’s ability to continue as a going concern within one year after the date that the 2019 financial statements are issued or available to be issued |
Accounting Standards Updates an
Accounting Standards Updates and Recently Adopted Standards | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Standards Updates and Recently Adopted Standards | |
Accounting Standards Updates and Recently Adopted Standards | NOTE 2 – ACCOUNTING STANDARDS UPDATES AND RECENTLY ADOPTED STANDARDS Recently Adopted Accounting Pronouncements In February 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2016‑02, “Leases.” Under the new guidance, leases classified as operating leases under previous GAAP must be recorded on the balance sheet. A lessee should recognize in the statement of financial position a liability to make lease payments (the lease liability) and a right-of-use (“ROU”) asset representing its right to use the underlying asset for the lease term. In July 2018, the FASB issued ASU No. 2018‑10, “Codification Improvements to Topic 842, Leases and ASU No. 2018‑11, Leases (Topic 842): Targeted Improvements .” ASU No. 2018‑10 provides improvements related to ASU No. 2016‑02 to increase stakeholders’ awareness of the amendments and to expedite the improvements. The amendments affect narrow aspects of the guidance issued in ASU No. 2016‑02. ASU No. 2018‑11 allows entities adopting ASU No. 2016‑02 to choose an additional (and optional) transition method, under which an entity initially applies the new leases standard at the adoption date and recognizes a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption. By electing the transition option provided in ASU No. 2018-11, the Company applied the modified retrospective approach on January 1, 2019 (as opposed to January 1, 2017). The Company also elected certain relief options offered in ASU 2016-02 including the package of practical expedients, the option not to separate lease and non-lease components and instead to account for them as a single lease component, and the option not to recognize right-of-use assets and lease liabilities that arise from short-term leases (i.e., leases with terms of twelve months or less). The Company did not elect the hindsight practical expedient, which allows entities to use hindsight when determining lease term and impairment of right-of-use assets. The amendments in these updates became effective for the Company on January 1, 2019. The impact of adoption was recording a lease liability of approximately $18.9 million in other liabilities, an ROU asset of approximately $14.5 million in premises and equipment, and a cumulative effect adjustment to retained earnings, net of tax, of approximately $373,000 on the Consolidated Balance Sheets. Recently Issued Accounting Pronouncements Not Yet Adopted In May 2019, the FASB issued ASU No. 2019-05, “ Financial Instruments - Credit Losses (Topic 326); Targeted Transition Relief .” This ASU allows entities to irrevocably elect, upon adoption of ASU 2016-13, the fair value option on financial instruments that (1) were previously recorded at amortized cost and (2) are within the scope of Accounting Standards Codification (“ASC”) 326-20 if the instruments are eligible for the fair value option under ASC 825-10. The fair value option election does not apply to held-to-maturity debt securities. Entities are required to make this election on an instrument-by-instrument basis. ASU 2019-05 has the same effective date as ASU 2016-13 (i.e., the first quarter of 2020). The Company does not expect to elect the fair value option, and therefore, ASU 2019-05 is not expected to impact the Company’s consolidated financial statements. In August 2018, the FASB issued ASU No. 2018‑13, “ Fair Value Measurement (Topic 820): Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement.” The amendments in this update modify the disclosure requirements for fair value measurements by removing, modifying, or adding certain disclosures. The update is effective for interim and annual periods in fiscal years beginning after December 31, 2019, with early adoption permitted for the removed disclosures and delayed adoption until fiscal year 2020 permitted for new disclosures. The removed and modified disclosures will be adopted on a retrospective basis and the new disclosures will be adopted on a prospective basis. The adoption will not have a material effect on the Company’s consolidated financial statements. In March 2017, the FASB issued ASU 2017‑08, “Receivables - Nonrefundable Fees and Other Costs (Subtopic 310‑20): Premium Amortization on Purchased Callable Debt Securities.” This guidance shortens the premium amortization period for certain callable debt securities by requiring amortization to the earliest call date. The standard is effective for public companies for annual and interim periods beginning after December 15, 2020. The adoption of this update is not expected to have a material impact on Atlantic Capital’s consolidated financial statements. In January 2017, the FASB issued ASU 2017‑04, “Intangibles - Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment,” which intends to simplify goodwill impairment testing by eliminating the second step of the analysis under which the implied fair value of goodwill is determined as if the reporting unit were being acquired in a business combination. The update instead requires entities to compare the fair value of a reporting unit with its carrying amount and recognize an impairment charge for any amount by which the carrying amount exceeds the reporting unit’s fair value, to the extent that the loss recognized does not exceed the amount of goodwill allocated to that reporting unit. ASU 2017‑04 must be applied prospectively and was effective for the Company on January 1, 2020. Early adoption is permitted. Atlantic Capital does not expect the new guidance to have a material impact on its financial condition or results of operations. In June 2016, the FASB issued ASU 2016‑13, “Financial Instruments - Credit Losses (Topic 326) Measurement of Credit Losses on Financial Instruments.” ASU 2016‑13 requires an entity to utilize a new impairment model known as the current expected credit loss (“CECL”) model to estimate its lifetime “expected credit loss” and record an allowance that, when deducted from the amortized cost basis of the financial asset, presents the net amount expected to be collected on the financial asset. The CECL model is expected to result in more timely recognition of credit losses. ASU 2016‑13 also requires new disclosures for financial assets measured at amortized cost, loans and available-for-sale debt securities. ASU 2016‑13 was effective for public companies for annual periods beginning after December 15, 2019, including interim periods within those fiscal years. Entities apply the standard’s provisions as a cumulative-effect adjustment to retained earnings as of the beginning of the first reporting period in which the guidance is adopted. The Company implemented a software package that is being utilized to estimate credit losses under CECL and performed model validation procedures. The Company is currently finalizing its implementation of internal controls and processes and will finalize the adoption during the first quarter of 2020. |
Divestitures and Discontinued O
Divestitures and Discontinued Operations | 12 Months Ended |
Dec. 31, 2019 | |
Divestitures and Discontinued Operations | |
Divestitures and Discontinued Operations | NOTE 3 – DIVESTITURES AND DISCONTINUED OPERATIONS Discontinued Operations On April 5, 2019, the Bank completed the Branch Sale. FirstBank assumed deposits and customer repurchase agreements of approximately $598 million and purchased approximately $385 million in loans. FirstBank paid a deposit premium equal to 6.25% of the balance of assumed deposits less a discount of 0.68% of purchased loans. The income and expenses related to these branches for the years ended December 31, 2019, 2018, and 2017 are included in discontinued operations and prior period financial information has been retrospectively adjusted for the impact of discontinued operations. Sale of Southeastern Trust Company (“SETCO”) On December 14, 2017, the Bank entered into an agreement with The Banc Group, LLC to sell its trust business, a division of the Bank known as Southeastern Trust Company, for approximately $1.8 million. The Banc Group, LLC, which subsequently changed its name to Southeastern Trust Company, LLC, is controlled by a former director and Chief Operating Officer of the Company. The sale of SETCO closed on June 1, 2018 and Atlantic Capital recorded a gain of $1.7 million during the second quarter, which was net of goodwill impairment in the amount of $69,000. The following table presents results of the discontinued operations for the years ended December 31, 2019, 2018, and 2017: Components of Net Income from Discontinued Operations For the year ended December 31, (in thousands) 2019 2018 2017 Net interest income $ 3,086 $ 14,140 $ 18,310 Provision for loan losses — (3,097) — Net interest income after provision for loan losses 3,086 17,237 18,310 Service charges 527 1,922 2,342 Mortgage income 288 1,302 1,255 Gain on sale of branches 34,475 — 302 Other (loss) income (1) 123 111 Total noninterest income 35,289 3,347 4,010 Salaries and employee benefits 2,757 11,714 12,245 Occupancy 410 2,016 2,073 Equipment and software 131 779 1,108 Amortization of intangibles 247 1,229 1,653 Communications and data processing 586 1,529 1,524 Divestiture expense 5,095 825 — Other noninterest expense 459 1,849 2,028 Total noninterest expense 9,685 19,941 20,631 Net income before provision for income taxes 28,690 643 1,689 Provision for income taxes 6,993 161 659 Net income from discontinued operations $ 21,697 $ 482 $ 1,030 Assets sold to and liabilities assumed by FirstBank include substantially all assets and liabilities associated with the branches sold in the Branch Sale, and were classified as held for sale on the consolidated balance sheets as of December 31, 2018. Prior year balances have been adjusted to conform with current presentation. The following table summarizes the major categories of assets and liabilities classified as held for sale and intangibles related to discontinued operations in the consolidated balance sheet as of December 31, 2018: Assets and Liabilities from Discontinued Operations (in thousands) December 31, 2018 Cash $ 4,234 Loans held for sale - discontinued operations 373,030 Premises held for sale - discontinued operations 7,722 Goodwill - discontinued operations 4,555 Core deposit intangible 1,405 Total assets $ 390,946 Deposits to be assumed - discontinued operations $ 585,429 Securities sold under agreements to repurchase - discontinued operations 6,220 Total liabilities $ 591,649 Net liabilities $ (200,703) |
Balance Sheet Offsetting
Balance Sheet Offsetting | 12 Months Ended |
Dec. 31, 2019 | |
Balance Sheet Offsetting | |
Balance Sheet Offsetting | NOTE 4 – BALANCE SHEET OFFSETTING Atlantic Capital enters into reverse repurchase agreements in order to invest short-term funds. The Company enters into repurchase agreements for short-term financing needs. The following table presents a summary of amounts outstanding under repurchase agreements, reverse repurchase agreements and derivative financial instruments including those entered into in connection with the same counterparty under master netting agreements as of December 31, 2019 and 2018. While these agreements are typically over-collateralized, U.S. GAAP requires disclosures in this table to limit the amount of such collateral to the amount of the related recognized asset or liability for each counterparty. Gross Amounts not Offset in the Gross Balance Sheet Amounts of Gross Amounts Net Cash (in thousands) Recognized Offset on the Asset Financial Collateral December 31, 2019 Assets Balance Sheet Balance Instruments Received Net Amount Derivatives $ 8,856 $ — $ 8,856 $ — $ — $ 8,856 Total $ 8,856 $ — $ 8,856 $ — $ — $ 8,856 Gross Amounts not Offset in the Gross Balance Sheet Amounts of Gross Amounts Net Cash Recognized Offset on the Liability Financial Collateral Liabilities Balance Sheet Balance Instruments Pledged Net Amount Derivatives $ 5,647 $ — $ 5,647 $ (5,647) $ — $ — Total $ 5,647 $ — $ 5,647 $ (5,647) $ — $ — Gross Amounts not Offset in the Gross Balance Sheet Amounts of Gross Amounts Net Cash Recognized Offset on the Asset Financial Collateral December 31, 2018 Assets Balance Sheet Balance Instruments Received Net Amount Reverse repurchase agreements $ 9,457 $ — $ 9,457 $ (9,457) $ — $ — Derivatives 1,961 — 1,961 — — 1,961 Total $ 11,418 $ — $ 11,418 $ (9,457) $ — $ 1,961 Gross Amounts not Offset in the Gross Balance Sheet Amounts of Gross Amounts Net Cash Recognized Offset on the Liability Financial Collateral Liabilities Balance Sheet Balance Instruments Pledged Net Amount Repurchase agreements - discontinued operations $ 6,220 $ — $ 6,220 $ (6,220) $ — $ — Derivatives 4,027 — 4,027 (4,027) — — Total $ 10,247 $ — $ 10,247 $ (10,247) $ — $ — |
Securities
Securities | 12 Months Ended |
Dec. 31, 2019 | |
Securities | |
Securities | NOTE 5 – SECURITIES The following table presents the amortized cost, unrealized gains and losses, and fair value of securities available-for-sale and held-to-maturity at December 31, 2019 and December 31, 2018 . Gross Gross Amortized Unrealized Unrealized Cost Gains Losses Fair Value (in thousands) December 31, 2019 Available-For-Sale U.S. states and political divisions $ 81,865 $ 863 $ (243) $ 82,485 Trust preferred securities 4,808 — (120) 4,688 Corporate debt securities 19,557 363 — 19,920 Residential mortgage-backed securities 173,047 2,797 (476) 175,368 Total available-for-sale 279,277 4,023 (839) 282,461 Held-to-Maturity U.S. states and political divisions 116,972 104 (1,785) 115,291 Total held-to-maturity 116,972 104 (1,785) 115,291 Total securities $ 396,249 $ 4,127 $ (2,624) $ 397,752 December 31, 2018 Available-For-Sale U.S. Government agencies $ 27,259 $ 24 $ (434) $ 26,849 U.S. states and political divisions 91,864 40 (7,070) 84,834 Trust preferred securities 4,781 — (381) 4,400 Corporate debt securities 12,855 — (492) 12,363 Residential mortgage-backed securities 277,524 2,726 (6,210) 274,040 Total securities $ 414,283 $ 2,790 $ (14,587) $ 402,486 The following table presents the amortized cost and fair value of available-for-sale and held-to-maturity debt securities by contractual maturity at December 31, 2019. Actual maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. Available-For-Sale Held-to-Maturity Amortized Fair Amortized Fair Cost Value Cost Value (in thousands) (in thousands) Within 1 year $ 6,044 $ 6,136 $ — $ — Over 1 year through 5 years 4,027 4,078 — — 5 years to 10 years 34,804 35,152 — — Over 10 years 61,355 61,727 116,972 115,291 106,230 107,093 116,972 115,291 Residential mortgage-backed securities 173,047 175,368 — — Total $ 279,277 $ 282,461 $ 116,972 $ 115,291 The following table summarizes available-for-sale securities and held-to-maturity securities in an unrealized loss position as of December 31, 2019 and December 31, 2018. Less than 12 months 12 months or greater Totals Fair Unrealized Fair Unrealized Fair Unrealized December 31, 2019 Value Losses Value Losses Value Losses (in thousands) Available-for-Sale U.S. states and political divisions $ 20,019 $ (190) $ 4,090 $ (53) $ 24,109 $ (243) Trust preferred securities — — 4,687 (120) 4,687 (120) Corporate debt securities — — — — — — Residential mortgage-backed securities 10,751 (78) 30,292 (398) 41,043 (476) Total available-for-sale 30,770 (268) 39,069 (571) 69,839 (839) Held-to-Maturity U.S. states and political divisions 96,854 (1,785) — — 96,854 (1,785) Total held-to-maturity 96,854 (1,785) — — 96,854 (1,785) Total securities $ 127,624 $ (2,053) $ 39,069 $ (571) $ 166,693 $ (2,624) December 31, 2018 Available-for-Sale U.S. Government agencies $ 1,487 $ (19) $ 21,849 $ (415) $ 23,336 $ (434) U.S. states and political divisions 2,351 (54) 75,234 (7,016) 77,585 (7,070) Trust preferred securities — — 4,400 (381) 4,400 (381) Corporate debt securities 6,009 (60) 6,354 (432) 12,363 (492) Residential mortgage-backed securities 30,938 (152) 196,745 (6,058) 227,683 (6,210) Total securities $ 40,785 $ (285) $ 304,582 $ (14,302) $ 345,367 $ (14,587) At December 31, 2019, there were 77 available-for-sale securities and 35 held-to-maturity securities that were in an unrealized loss position. At December 31, 2018, there were 271 securities in an unrealized loss position, and all were classified as available-for-sale. Atlantic Capital does not intend to sell nor believes it will be required to sell securities in an unrealized loss position prior to the recovery of their amortized cost basis. Unrealized losses at December 31, 2019 and December 31, 2018 were attributable to changes in market interest rates. Management evaluates securities for other-than-temporary impairment on a quarterly basis. Consideration is given to the length of time and the extent to which the fair value has been less than cost, the financial condition and near-term prospects of the issuer, among other factors. In analyzing an issuer’s financial condition, management considers whether the securities are issued by the federal government or its agencies, whether downgrades by bond rating agencies have occurred, and industry analysts’ reports. No impairment charges were recognized during the year ended December 31, 2019 or 2018. Realized gains and losses are derived using the specific identification method for determining the cost of securities sold. The following table summarizes securities sales activity for the years ended December 31, 2019 and 2018. Year Ended December 31, 2019 2018 (in thousands) Proceeds from sales $ 116,963 $ 62,087 Gross realized gains $ 1,675 $ — Gross realized losses (768) (1,855) Net gains (losses) on sales of securities $ 907 $ (1,855) Investment securities with a carrying value of $32.3 million and $65.3 million were pledged to secure public funds and other borrowings at December 31, 2019 and December 31, 2018, respectively. As of December 31, 2019 and December 31, 2018, Atlantic Capital had investments with a carrying value of $4.7 million and $4.4 million, respectively, in Small Business Investment Companies (“SBICs”) where Atlantic Capital is a limited partner. These investments are included in other assets on the Consolidated Balance Sheets. During the years ended December 31, 2019 and 2018, the Company recorded impairments in the amounts of $26,000 and $228,000, respectively, on these SBICs. The impairment resulted from deterioration in the credit quality of one of the SBICs and their inability to pay distributions until their financial position improves. There have been no upward adjustments, cumulatively or year-to-date, on these investments. |
Loans and Allowance for Loan Lo
Loans and Allowance for Loan Losses | 12 Months Ended |
Dec. 31, 2019 | |
Loans and Allowance for Loan Losses | |
Loans and Allowance for Loan Losses | NOTE 6 – LOANS AND ALLOWANCE FOR LOAN LOSSES The composition of the loan portfolio as of December 31, 2019 and December 31, 2018, is summarized below. December 31, 2019 December 31, 2018 (in thousands) Loans held for sale Loans held for sale - discontinued operations $ — $ 373,030 Loans held for sale - continuing operations 370 5,889 Total loans held for sale $ 370 $ 378,919 Loans held for investment Commercial loans: Commercial and industrial $ 705,115 $ 645,374 Commercial real estate 916,328 794,828 Construction and land 127,540 156,232 Mortgage warehouse participations 13,941 27,967 Total commercial loans 1,762,924 1,624,401 Residential: Residential mortgages 31,315 32,800 Home equity 25,002 22,822 Total residential loans 56,317 55,622 Consumer 37,765 25,851 Other 19,552 24,712 Total loans 1,876,558 1,730,586 Less net deferred fees and other unearned income (3,034) (2,513) Less allowance for loan losses (18,535) (17,851) Loans held for investment, net $ 1,854,989 $ 1,710,222 At December 31, 2019 and December 31, 2018, loans with a carrying value of $729.6 million and $752.7 million, respectively, were pledged as collateral to secure FHLB advances and the Federal Reserve discount window. At December 31, 2018, PCI loans were designated as held for sale for the Branch Sale that occurred in the second quarter of 2019. The following table presents changes in the value of the accretable yield for acquired loans accounted for under ASC 310‑30. Year Ended December 31, 2018 Balance at beginning of period $ 2,316 Accretion (970) Reclassification of nonaccretable discount due to change in expected cash flows 444 Other changes, net (1,790) Balance at end of period $ — In addition to the accretable yield on PCI loans, the fair value adjustments on purchased loans outside the scope of ASC 310‑30 are also accreted to interest income over the life of the loans. At December 31, 2019, the unamortized balance of fair value discount on loans acquired through a business combination and not accounted for under ASC 310‑30 was $279,000 compared to $3.6 million at December 31, 2018. The allowance for loan losses represents management’s estimate of probable incurred losses in the loan portfolio as of the end of the period. It is comprised of specific reserves for impaired loans and a general allowance for pools of loans with similar characteristics not individually evaluated. The allowance is regularly evaluated for loan losses to maintain an adequate level to absorb probable current inherent losses in the loan portfolio. Factors contributing to the determination of the allowance include the credit worthiness of the borrower, changes in the value of pledged collateral, and general economic conditions. Most loan commitments rated substandard or worse are specifically reviewed for loss potential. For loans deemed to be impaired, a specific allocation is assigned based on the losses expected to be realized from those loans. The following table presents the balance and activity in the allowance for credit losses by portfolio segment for the years ended December 31, 2019 and 2018. 2019 2018 Year Ended December 31, Commercial Residential Consumer Total Commercial Residential Consumer Total (in thousands) Allowance for loan losses: Beginning balance $ 17,322 $ 292 $ 237 $ 17,851 $ 18,267 $ 802 $ 275 $ 19,344 Provision for loan losses 2,910 (153) (45) 2,712 1,613 374 (41) 1,946 Provision for loan losses - discontinued operations — — — — (2,429) (653) (15) (3,097) Loans charged-off (2,069) (9) (39) (2,117) (176) (235) (16) (427) Recoveries 40 15 34 89 47 4 34 85 Total ending allowance balance $ 18,203 $ 145 $ 187 $ 18,535 $ 17,322 $ 292 $ 237 $ 17,851 The general component of the allowance for loan losses is based on the incurred losses inherent in the portfolio. The loss factors are determined through the generation of probabilities of default (“PDs”) and losses given default (“LGDs”) for groups of similar loans with similar credit grades where Loss Factor = PD x LGD. The PDs and LGDs for the loan portfolio are calculated based on Atlantic Capital’s loss history as well as available market-based data. The loss factor for each pool of loans is adjusted based on Qualitative and Environmental factors to account for conditions in the current environment which management believes are likely to cause a difference between the calculated loss based on historical performance and the incurred loss in the existing portfolio. These factors include: changes in policies and procedures, changes in the economy, changes in nature, volume of the portfolio and in the terms of loans, changes in lending management, changes in past dues and credit migration, changes in the loan review system, changes in the value of collateral and concentration risk and changes in external factors, such as competition, legal, regulatory, etc. On a quarterly basis, management evaluates these factors in order to determine an adjustment unique to Atlantic Capital and its market. Charge-offs are recognized when the amount of the loss is quantifiable and timing is known. Collateral based loan charge-offs are measured based on the difference between the loan’s carrying value, including deferred fees, and the estimated net realizable value of the loan. When assessing property value for the purpose of determining a charge-off, a third-party appraisal or an independently derived internal evaluation is generally employed. A loan is considered to be impaired when, based on current information and events, it is probable that all amounts due according to the contractual terms of the loan agreement will not be collected. Loans for which the terms have been modified resulting in a concession, and for which the borrower is experiencing financial difficulties, are considered TDRs and classified as impaired. Factors considered by management in determining impairment include payment status, collateral value, and the probability of collecting scheduled principal and interest payments when due. Loans that experience insignificant payment delays and payment shortfalls generally are not classified as impaired. Management determines the significance of payment delays and payment shortfalls on a case-by-case basis, taking into consideration all of the circumstances surrounding the loan and the borrower, including the length of the delay, the reasons for the delay, the borrower’s prior payment record, and the amount of the shortfall in relation to the principal and interest owed. A specific allowance is established for individually evaluated impaired loans as needed. Reserves on impaired loans are measured based on the present value of expected future cash flows discounted at the loan’s effective interest rate or the observable market price, or the fair value of the underlying collateral of the loan if the loan is collateral dependent. Nonaccrual loans include both homogeneous loans that are collectively evaluated for impairment and individually evaluated impaired loans. Atlantic Capital’s policy is to place loans on nonaccrual status, when, in the opinion of management, the principal and interest on a loan is not likely to be repaid in accordance with the loan terms or when the loan becomes 90 days past due and is not well secured and in the process of collection. When a loan is classified on nonaccrual status, interest previously accrued but not collected is reversed against current interest revenue. Principal and interest payments received on a nonaccrual loan are applied to reduce outstanding principal. PCI Loans are considered past due or delinquent when the contractual principal or interest due in accordance with the terms of the loan agreement remains unpaid after the due date of the scheduled payment. Loans accounted for under ASC 310‑30 were not classified as nonaccrual, as the carrying value of the respective loan or pool of loans cash flows were considered estimable and probable of collection. Therefore, interest revenue, through accretion of the difference between the carrying value of the loans and the expected cash flows (accretable yield), was recognized on all acquired loans accounted for under ASC 310‑30. The balance in the allowance for loan losses and the recorded investment in loans by portfolio segment and based on impairment method is presented in the following table as of December 31, 2019 and December 31, 2018. December 31, 2019 Commercial Residential Consumer Total (in thousands) Allowance for loan losses: Ending allowance balance attributable to loans Individually evaluated for impairment $ 1,010 $ — $ — $ 1,010 Collectively evaluated for impairment 17,193 145 187 17,525 Total ending allowance balance $ 18,203 $ 145 $ 187 $ 18,535 Loans: Loans individually evaluated for impairment $ 22,091 $ 726 $ — $ 22,817 Loans collectively evaluated for impairment 1,740,833 55,591 57,317 1,853,741 Total ending loans held for investment balance $ 1,762,924 $ 56,317 $ 57,317 $ 1,876,558 December 31, 2018 Commercial Residential Consumer Total (in thousands) Allowance for loan losses: Ending allowance balance attributable to loans Individually evaluated for impairment $ 317 $ — $ — $ 317 Collectively evaluated for impairment 17,005 292 237 17,534 Total ending allowance balance $ 17,322 $ 292 $ 237 $ 17,851 Loans: Loans individually evaluated for impairment $ 10,273 $ 161 $ — $ 10,434 Loans collectively evaluated for impairment 1,614,128 55,461 50,563 1,720,152 Total ending loans balance $ 1,624,401 $ 55,622 $ 50,563 $ 1,730,586 The following table presents information on Atlantic Capital’s impaired loans for the years ended December 31, 2019 and 2018: For the Year Ended December 31, 2019 2018 Average Balance Interest Income Average Balance Interest Income Unpaid of Recorded Recognized Unpaid of Recorded Recognized Principal Recorded Related Investment While During Principal Recorded Related Investment While During Balance Investment Allowance Impaired Impairment Balance Investment Allowance Impaired Impairment (in thousands) Impaired loans with no related allowance recorded: Commercial and industrial $ 6,920 6,082 $ — $ 6,270 $ 161 $ 4,346 $ 4,346 $ — $ 4,529 $ 230 Commercial real estate 5,005 4,794 — 4,819 226 1,828 1,665 — 1,691 — Construction and land — — — — — — — — — — Residential mortgages 72 26 — 26 — 207 161 — 173 — Home equity 700 700 — 700 — — — — — — Mortgage warehouse — — — — — — — — — — Consumer — — — — — — — — — — Total $ 12,697 $ 11,602 $ — $ 11,815 $ 387 $ 6,381 $ 6,172 $ — $ 6,393 $ 230 Impaired loans with an allowance recorded: Commercial and industrial $ 3,350 3,350 $ 886 $ 3,370 $ 27 $ 395 $ 395 $ 124 $ 395 $ — Commercial real estate 7,865 7,865 124 7,865 254 3,867 3,867 193 4,242 69 Construction and land — — — — — — — — — — Residential mortgages — — — — — — — — — — Home equity — — — — — — — — — — Mortgage warehouse — — — — — — — — — — Consumer — — — — — — — — — — Total $ 11,215 $ 11,215 $ 1,010 $ 11,235 $ 281 $ 4,262 $ 4,262 $ 317 $ 4,637 $ 69 Total impaired loans $ 23,912 $ 22,817 $ 1,010 $ 23,050 $ 668 $ 10,643 $ 10,434 $ 317 $ 11,030 $ 299 Atlantic Capital evaluates loans in accordance with ASC 310‑40, Troubled Debt Restructurings by Creditors . TDRs are loans in which Atlantic Capital has modified the terms and granted an economic concession to a borrower who is experiencing financial difficulties. These modifications may include interest rate reductions, term extensions and other concessions intended to minimize losses. As of December 31, 2019 and 2018, the Company had a recorded investment in TDRs of $13.2 million and $8.2 million, respectively. The Company had commitments to lend additional funds of $4,000 and $28,000 on loans modified as TDRs, as of December 31, 2019 and December 31, 2018, respectively. During the years ended December 31, 2019 and 2018, the Company granted restructurings, which included modifications such as payment deferrals and interest-only forbearance. Loans, by portfolio class, modified as TDRs during the years ended December 31, 2019 and 2018, are as follows. Pre-Modification Post-Modification Outstanding Outstanding Number of Loans Recorded Investment Recorded Investment (in thousands) Year Ended December 31, 2019 Commercial and industrial 9 $ 4,699 $ 4,699 Commercial real estate 4 8,471 8,471 Total 13 $ 13,170 $ 13,170 Year Ended December 31, 2018 Commercial real estate 1 4,617 4,617 Total 1 $ 4,617 $ 4,617 The Company did not forgive any principal or give any interest rate reductions on TDRs during the years ended December 31, 2019 and 2018, and there were no subsequent defaults of previously identified TDRs. The Bank conducts transactions with its directors and executive officers, including companies in which such officers or directors have beneficial interests. The following is a summary of activity with respect to related-party loans in 2019 and 2018. 2019 2018 (in thousands) Balance at January 1, $ — $ 1,885 Additions 6 4,362 Repayments (6) (6,247) Balance at December 31, $ — $ — Atlantic Capital individually rates loans based on internal credit risk ratings using numerous factors, including thorough analysis of historical and expected cash flows, consumer credit risk scores (FICO scores), rating agency information, LTV ratios, collateral, collection experience, and other internal metrics. Atlantic Capital uses a dual rating system. The likelihood of default of a credit transaction is graded in the Obligor Rating. The risk of loss given default is graded in the Facility Rating. The Obligor Rating is determined through thorough credit analysis. Facility Ratings are used to describe the value to the bank that the collateral represents. Facility Ratings are based on the collateral package or market expectations regarding the value or liquidity of the collateral. Ratings are generally reviewed at least annually or more frequently if there is a material change in creditworthiness. Exceptions to this policy may include well collateralized term loans and loans to individuals with limited exposure or complexity. Atlantic Capital uses the following definitions for risk ratings: Pass: Loans that are analyzed individually as part of the above described process and that do not meet the criteria of special mention, substandard or doubtful. Special Mention: Loans classified as special mention have a potential weakness that requires management’s close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the loan or of the institution’s credit position at some future date. Substandard: Loans classified as substandard are inadequately protected by the current net worth and paying capacity of the obligor or of the collateral pledged, if any. Loans so classified have a well-defined weakness or weaknesses that jeopardize the liquidation of the debt. They are characterized by the distinct possibility that the institution will sustain some loss if the deficiencies are not corrected. Doubtful: Loans classified as doubtful have all the weaknesses inherent in those classified as substandard, with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of currently existing facts, conditions, and values, highly questionable and improbable. As of December 31, 2019 and December 31, 2018, and based on the most recent analysis performed, the risk category of loans by class of loans is as follows. (Total loans includes loans held for sale - discontinued operations as of December 31, 2018.) Special Substandard Substandard Doubtful Pass Mention Accruing Nonaccruing Nonaccruing Total (in thousands) December 31, 2019 Commercial and industrial $ 648,895 $ 40,179 $ 10,051 $ 5,990 $ — $ 705,115 Commercial real estate 891,078 5,483 19,504 263 — 916,328 Construction and land 127,540 — — — — 127,540 Residential mortgages 30,941 — 119 151 104 31,315 Home equity 24,302 — — 700 — 25,002 Mortgage warehouse 13,941 — — — — 13,941 Consumer/Other 56,336 500 481 — — 57,317 Total loans $ 1,793,033 $ 46,162 $ 30,155 $ 7,104 $ 104 $ 1,876,558 Special Substandard Substandard Doubtful Pass Mention Accruing Nonaccruing Nonaccruing Total (in thousands) December 31, 2018 Commercial and industrial $ 671,992 $ 6,802 $ 22,777 $ 832 $ — $ 702,403 Commercial real estate 946,612 4,754 14,914 126 1,647 968,053 Construction and land 169,687 40 25 — — 169,752 Residential mortgages 118,265 1,119 1,441 1,138 281 122,244 Home equity 54,707 92 294 499 — 55,592 Mortgage warehouse 22,192 5,775 — — — 27,967 Consumer/Other 57,268 66 97 174 — 57,605 Total loans $ 2,040,723 $ 18,648 $ 39,548 $ 2,769 $ 1,928 $ 2,103,616 Atlantic Capital monitors loans by past due status. The following table presents the aging of the recorded investment in past due loans as of December 31, 2019 and December 31, 2018 by class of loans. As of December 31, 2019 Accruing 30‑89 Accruing Accruing Days 90+ Days Current Past Due Past Due Nonaccruing Total (in thousands) Loans by Classification Commercial and industrial $ 695,026 $ 4,099 $ — $ 5,990 $ 705,115 Commercial real estate 914,787 1,194 85 262 916,328 Construction and land 127,540 — — — 127,540 Residential mortgages 30,352 707 — 256 31,315 Home equity 24,302 — — 700 25,002 Mortgage warehouse 13,941 — — — 13,941 Consumer 57,181 136 — — 57,317 Total Loans $ 1,863,129 $ 6,136 $ 85 $ 7,208 $ 1,876,558 As of December 31, 2018 Accruing 30‑89 Accruing Accruing Days 90+ Days Current Past Due Past Due Nonaccruing Total (in thousands) Loans by Classification Commercial and industrial $ 692,308 $ 8,785 $ 478 $ 832 $ 702,403 Commercial real estate 963,579 2,701 — 1,773 968,053 Construction and land 169,752 — — — 169,752 Residential mortgages 119,932 893 — 1,419 122,244 Home equity 54,714 379 — 499 55,592 Mortgage warehouse 27,967 — — — 27,967 Consumer 57,371 59 1 174 57,605 Total Loans $ 2,085,623 $ 12,817 $ 479 $ 4,697 $ 2,103,616 |
Premises and Equipment
Premises and Equipment | 12 Months Ended |
Dec. 31, 2019 | |
Premises and Equipment | |
Premises and Equipment | NOTE 7 – PREMISES AND EQUIPMENT Premises and equipment consist of the following: As of December 31, 2019 2018 (in thousands) Land and improvements $ — $ 1,902 Buildings and improvements — 7,402 Leasehold improvements 9,040 7,745 Equipment, furniture and software 11,636 13,339 Right of use asset - leases 11,940 — Projects in process 147 — Premises and equipment-gross 32,763 30,388 Accumulated depreciation (10,227) (12,887) Premises and equipment-net $ 22,536 $ 17,501 Depreciation expense was $1.8 million, $1.9 million, and $1.6 million in 2019, 2018, and 2017, respectively. There were no premises and equipment held for sale for discontinued operations as of December 31, 2019. Premises and equipment held for sale for discontinued operations as of December 31, 2018 totaled $7.7 million. This balance represents premises and equipment related to the Branch Sale that closed on April 5, 2019. Leases A lease is defined as a contract, or part of a contract, that conveys the right to control the use of identified property, plant or equipment for a period of time in exchange for consideration. On January 1, 2019, the Company adopted ASU No. 2016-02 “Leases” (Topic 842) and all subsequent ASUs that modified Topic 842. For the Company, Topic 842 primarily affected the accounting treatment for operating lease agreements in which the Company is the lessee. Operating leases in which the Company is the lessee are recorded as operating lease ROU assets and operating lease liabilities, included in premises and equipment and other liabilities, respectively, on the Consolidated Balance Sheets. The Company does not currently have any significant finance leases in which it is the lessee. Operating lease ROU assets represent the Company’s right to use an underlying asset during the lease term and operating lease liabilities represent its obligation to make lease payments arising from the lease. ROU assets and operating lease liabilities are recognized at lease commencement based on the present value of the remaining lease payments using a discount rate that represents the Company’s incremental borrowing rate at the lease commencement date. ROU assets are further adjusted for lease incentives. Operating lease expense, which is comprised of amortization of the ROU asset and the implicit interest accreted on the operating lease liability, is recognized on a straight-line basis over the lease term, and is recorded in net occupancy expense in the Consolidated Statements of Operations. The Company’s leases relate primarily to office space and bank branches with remaining lease terms of generally 1 to 12 years. Certain lease arrangements contain extension options which typically range from 5 to 10 years at the then fair market rental rates. As these extension options are not generally considered reasonably certain of exercise, they are not included in the lease term. Portions of certain properties are subleased for terms extending through 2024. As of December 31, 2019, operating lease ROU assets and liabilities were $11.9 million and $16.9 million, respectively. The Company elected not to include short-term leases (i.e., leases with initial terms of twelve months or less) on the Consolidated Balance Sheets. Additionally, the Company elected, for all classes of underlying assets, not to separate lease and non-lease components and instead to account for them as a single lease component. Rent expense for the years ended December 31, 2019, 2018, and 2017 was $2.3 million, $3.1 million, and $2.7 million, respectively, which were included in occupancy expense in the Consolidated Statements of Operations. The table below summarizes the Company’s net lease cost: Year Ended December 31, 2019 Operating lease cost $ 2,274 Short-term lease cost 44 Sublease income (252) Net lease cost $ 2,066 The tables below summarize other information related to the Company’s operating leases: Year Ended December 31, 2019 Operating cash paid for amounts included in the measurement of lease liabilities $ 1,944 Right-of-use assets obtained in exchange for new finance lease liabilities 17,807 December 31, 2019 Weighted-average remaining lease term - operating leases 9.0 Weighted-average discount rate - operating leases 3.1 % The table below summarizes the maturity of remaining lease liabilities: December 31, 2019 (in thousands) Year Ended: December 31, 2020 $ 2,062 December 31, 2021 2,176 December 31, 2022 2,418 December 31, 2023 2,025 December 31, 2024 1,937 Thereafter 9,437 Total future minimum lease payments 20,055 Less: Interest (3,190) Present value of net future minimum lease payments $ 16,865 On April 5, 2019, Atlantic Capital completed the Branch Sale. Eight of these properties were owned by Atlantic Capital and nine were leased. The Company’s ROU asset and lease liability were reduced during the second quarter of 2019 by $3.6 million and $4.1 million, respectively, as a result of this divestiture. |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 12 Months Ended |
Dec. 31, 2019 | |
Goodwill and Intangible Assets | |
Goodwill and Intangible Assets | NOTE 8 – GOODWILL AND INTANGIBLE ASSETS The carrying amount of goodwill and other intangible assets is summarized below: December 31, December 31, 2019 2018 (in thousands) Core deposit intangible $ 9,544 $ 9,544 Less: accumulated amortization (6,100) (5,853) Less: impairment to-date related to divested branches (3,444) (2,286) Core deposit intangible, net - discontinued operations — 1,405 Servicing assets, net 3,027 2,983 Total intangibles subject to amortization, net 3,027 4,388 Goodwill - discontinued operations — 4,555 Goodwill - continuing operations 19,925 17,135 Total goodwill and other intangible assets, net $ 22,952 $ 26,078 The Company conducted its annual impairment testing as of October 1, 2019, utilizing a qualitative assessment. Based on these assessments, management concluded that the 2019 annual qualitative impairment assessment indicated that it is more likely than not that the estimated fair value exceeded the carrying value (including goodwill). Therefore, a step one quantitative analysis was not required. On April 5, 2019, the Bank completed the Branch Sale. In accordance with U.S. GAAP, Atlantic Capital allocated a proportionate share of its goodwill balance to the discontinued operations on a relative fair value basis and performed a qualitative assessment impairment test for the goodwill allocated to continuing operations. The qualitative goodwill impairment analysis of continuing operations indicated that it was more likely than not that the estimated fair value exceeded the carrying value as of the assessment date. Based on a relative fair value analysis performed through the date of the Branch Sale, goodwill impairment in the amount of $1.8 million related to the Branch Sale was recorded during the second quarter of 2019. Additionally, goodwill impairment in the amount of $69,000 related to the sale of the trust business was recorded during the second quarter of 2018. The following table presents activity for goodwill and other intangible assets: Goodwill Core Deposit Intangible Total (in thousands) Balance at December 31, 2017 $ 21,759 $ 2,634 $ 24,393 Amortization — (1,229) (1,229) Impairment, due to trust business sale (69) — (69) Balance at December 31, 2018 21,690 1,405 23,095 Amortization — (247) (247) Impairment, due to Branch Sale (1,765) (1,158) (2,923) Balance at December 31, 2019 $ 19,925 $ — $ 19,925 Atlantic Capital recognized amortization expense on its core deposit intangible of $247,000, $1.2 million, and $1.7 million for the years ended December 31, 2019, 2018, and 2017, respectiv ely, which was included in noninterest expense. The Company recorded impairment due to the Branch Sale totaling $1.2 million during 2019. There were no events or circumstances that led management to believe that any impairment existed at December 31, 2019 in Atlantic Capital’s other intangible assets. |
Servicing Rights
Servicing Rights | 12 Months Ended |
Dec. 31, 2019 | |
Servicing Rights | |
Servicing Rights | NOTE 9 – SERVICING RIGHTS SBA Servicing Rights SBA servicing rights are initially recorded at fair value. Subsequently, Atlantic Capital accounts for SBA servicing rights using the amortization method and they are included in other intangibles, net on the Consolidated Balance Sheets. As of December 31, 2019 and 2018, the balance of SBA loans sold and serviced by Atlantic Capital totaled $185.5 million and $161.51 million, respectively. Changes in the balance of SBA servicing assets for the years ended December 31, 2019 and 2018 are presented in the following table . Year ended December 31, SBA Loan Servicing Assets 2019 2018 (in thousands) Beginning carrying value, net $ 2,539 $ 2,635 Additions 1,226 823 Amortization (1,034) (919) Ending carrying value $ 2,731 $ 2,539 At December 31, 2019 and 2018, the sensitivity of the fair value of the SBA loan servicing rights to immediate changes in key economic assumptions are presented in the table below . Sensitivity of the SBA Servicing Assets December 31, 2019 December 31, 2018 (dollars in thousands) Fair value of retained servicing assets $ 2,842 $ 2,630 Weighted average life 3.77 years 4.83 years Prepayment speed: 14.87 % 11.92 % Decline in fair value due to a 10% adverse change $ (150) $ (131) Decline in fair value due to a 20% adverse change $ (254) $ (223) Weighted average discount rate 13.66 % 14.42 % Decline in fair value due to a 100 bps adverse change $ (98) $ (101) Decline in fair value due to a 200 bps adverse change $ (156) $ (165) The above sensitivities are hypothetical and should be used with caution. As the amounts indicate, changes in fair value based on valuation assumptions generally cannot be extrapolated because the relationship of the change in assumption to the change in fair value may not be linear. Also, the effect of a variation in a particular assumption on the fair value of the retained interest is calculated without changing any other assumption. In reality, changes in one factor may result in changes in another, which might magnify or counteract the sensitivities. TriNet Servicing Rights TriNet servicing rights are initially recorded at fair value. Subsequently, Atlantic Capital accounts for TriNet servicing rights using the amortization method and they are included in other intangibles, net. Changes in the balance of TriNet servicing assets for the years ended December 31, 2019 and 2018 are presented in the following table . Year Ended December 31, TriNet Servicing Assets 2019 2018 (in thousands) Beginning carrying value, net $ 444 $ 605 Additions — — Amortization (148) (161) Ending carrying value $ 296 $ 444 At December 31, 2019 and 2018, the sensitivity of the fair value of the TriNet servicing rights to immediate changes in key economic assumptions are presented in the table below . Sensitivity of the TriNet Servicing Assets December 31, 2019 December 31, 2018 (dollars in thousands) Fair value of retained servicing assets $ $ Weighted average life 5.58 years 6.48 years Prepayment speed: 5.00 % 5.00 % Decline in fair value due to a 10% adverse change $ (5) $ (7) Decline in fair value due to a 20% adverse change $ (10) $ (14) Weighted average discount rate 8.00 % 8.00 % Decline in fair value due to a 100 bps adverse change $ (9) $ (13) Decline in fair value due to a 200 bps adverse change $ (18) $ (25) The above sensitivities are hypothetical and should be used with caution. As the amounts indicate, changes in fair value based on valuation assumptions generally cannot be extrapolated because the relationship of the change in assumption to the change in fair value may not be linear. Also, the effect of a variation in a particular assumption on the fair value of the retained interest is calculated without changing any other assumption. In reality, changes in one factor may result in changes in another, which might magnify or counteract the sensitivities. |
Deposits
Deposits | 12 Months Ended |
Dec. 31, 2019 | |
Regulatory Matters | |
Deposits | NOTE 10 – DEPOSITS December 31, 2019 December 31, 2018 (in thousands) Non-interest bearing demand deposits $ 824,646 $ 602,252 Interest-bearing demand deposits 373,727 252,490 Savings and money market deposits 1,174,437 987,908 Time deposits less than $250,000 37,680 3,630 Time deposits $250,000 or greater 6,709 6,993 Brokered deposits 81,847 99,241 Total deposits - continuing operations $ 2,499,046 $ 1,952,514 Deposits to be assumed - discontinued operations $ — $ 585,429 Time deposits less than $250,000 at December 31, 2019 increased compared to December 31, 2018 due to the Company’s growth in its fintech partnership with a financial technology firm that offers CD-secured loans to its customers in order to build credit and/or improve their credit score. Brokered certificate of deposits issued in denominations of $100,000 or more are participated out by the deposit brokers in shares of $100,000 or less. Overdrawn deposits accounts reclassified as loans were $383,000 and $1.3 million at December 31, 2019 and 2018, respectively. There were $32.3 million and $65.3 million in investment securities pledged to secure public deposits and other secured borrowings as of December 31, 2019 and 2018, respectively. Deposits of certain officers, directors, and their associates totaled $9.2 million and $8.4 million as of December 31, 2019 and 2018, respectively. The scheduled maturities of time and brokered deposits as of December 31, 2019 are as follows: Time Brokered (in thousands) 2020 $ 38,446 $ 79,276 2021 5,005 2,571 2022 866 — 2023 — — 2024 44 — Thereafter 28 — Total $ 44,389 $ 81,847 |
Other Borrowings and Long Term
Other Borrowings and Long Term Debt | 12 Months Ended |
Dec. 31, 2019 | |
Other Borrowings and Long Term Debt | |
Other Borrowings and Long Term Debt | NOTE 11 – OTHER BORROWINGS AND LONG TERM DEBT As of December 31, 2019 and December 31, 2018, Atlantic Capital had no Federal Home Loan Bank borrowings outstanding. Interest expense for FHLB borrowings for the years ended December 31, 2019, 2018, and 2017 was $817,000, $2.4 million, and $1.5 million, respectively. At December 31, 2019, the Company had available line of credit commitments with the FHLB totaling $723.3 million, with no outstanding FHLB advances. However, based on actual collateral pledged, $155.8. million was available. At December 31, 2019, the Company had an available line of credit based on the collateral available of $410.9 million with the Federal Reserve Bank of Atlanta. Interest expense on federal funds purchased for the years ended December 31, 2019, 2018, and 2017 totaled $479,000, $303,000, and $222,000, respectively. On September 28, 2015, Atlantic Capital issued subordinated notes (the “Notes”) totaling $50.0 million in aggregate principal amount. The Notes are due September 30, 2025 and bear a fixed rate of interest of 6.25% per year until September 29, 2020. From September 30, 2020 to the maturity date, the interest rate will be a floating rate equal to the three-month LIBOR plus 468 basis points. The Notes were priced at 100% of their par value. The Notes qualify as Tier 2 regulatory capital. Subordinated debt is summarized as follows: December 31, 2019 December 31, 2018 (in thousands) Floating rate 10 year capital securities, with interest paid semi-annually at an annual fixed rate of 6.25% until September 30, 2020 $ 50,000 $ 50,000 Principal amount of subordinated debt $ 50,000 $ 50,000 Less debt issuance costs 127 296 Subordinated debt, net $ 49,873 $ 49,704 All subordinated debt outstanding at December 31, 2019 matures after more than five years. |
Other Comprehensive (Loss) Inco
Other Comprehensive (Loss) Income | 12 Months Ended |
Dec. 31, 2019 | |
Other Comprehensive (Loss) Income | |
Other Comprehensive (Loss) Income | NOTE 12 – OTHER COMPREHENSIVE (LOSS) INCOME Other comprehensive (loss) income for Atlantic Capital consists of changes in net unrealized gains and losses on investment securities available-for-sale and derivatives. The following tables present a summary of the changes in accumulated other comprehensive (loss) income balances for the applicable periods. For the Year Ended December 31, 2019 December 31, 2018 December 31, 2017 Income Income Income Tax Tax Tax Pre-Tax (Expense) After-Tax Pre-Tax (Expense) After-Tax Pre-Tax (Expense) After-Tax Amount Benefit Amount Amount Benefit Amount Amount Benefit Amount (in thousands) Accumulated other comprehensive (loss) income beginning of period $ (13,743) 3,438 $ (10,305) $ (6,274) $ 2,415 $ (3,859) $ (9,144) $ 3,519 $ (5,625) Reclassification of tax effects from AOCI — — — — (844) (844) — — — Unrealized net (losses) gains on investment securities available-for-sale 15,888 (3,974) 11,914 (8,070) 2,018 (6,052) 3,876 (1,491) 2,385 Reclassification adjustment for net realized (gains)/losses on investment securities available-for-sale (907) 227 (680) 1,855 (464) 1,391 181 (70) 111 Unrealized net (losses) gains on derivatives 4,843 (1,211) 3,632 (1,254) 313 (941) (1,187) 457 (730) Accumulated other comprehensive (loss) income end of period $ 6,081 $ (1,520) $ 4,561 $ (13,743) $ 3,438 $ (10,305) $ (6,274) $ 2,415 $ (3,859) |
Earnings Per Common Share
Earnings Per Common Share | 12 Months Ended |
Dec. 31, 2019 | |
Earnings Per Common Share | |
Earnings Per Common Share | NOTE 13 – EARNINGS PER COMMON SHARE Basic earnings per share amounts are computed by dividing net income by the weighted average number of shares of common stock outstanding. Diluted earnings per share amounts are computed by dividing net income by the weighted average number of shares of common stock outstanding and the dilutive effects of the shares awarded under the stock option plan, based on the treasury stock method using an average fair market value of the stock during the respective periods. The following table represents the earnings per share calculations from continuing operations and discontinued operations for the years ended December 31, 2019, 2018, and 2017. Year Ended December 31, 2019 2018 2017 (in thousands, except share and per share amounts) Net income (loss) from continuing operations $ 28,158 $ 28,050 $ (4,756) Net income from discontinued operations 21,697 482 1,030 Net income (loss) available to common shareholders $ 49,855 $ 28,532 $ (3,726) Weighted average shares outstanding Basic (1) 23,315,562 25,947,038 25,592,731 Effect of dilutive securities: Stock options and performance share awards 162,439 164,717 229,354 Diluted 23,478,001 26,111,755 25,822,085 Net income (loss) per common share - basic Net income (loss) per common share - continuing operations $ 1.21 $ 1.08 $ (0.19) Net income per common share - discontinued operations 0.93 0.02 0.04 Net income (loss) per common share - basic $ 2.14 $ 1.10 $ (0.15) Net income (loss) per common share - diluted Net income (loss) per common share - continuing operations $ 1.20 $ 1.07 $ (0.19) Net income per common share - discontinued operations 0.92 0.02 0.04 Net income (loss) per common share - diluted $ 2.12 $ 1.09 $ (0.15) (1) Unvested restricted shares are participating securities and included in basic share calculations. Stock options outstanding of 150, 2,124, and 550 at December 31, 2019, 2018, and 2017, respectively, have not been included in diluted earnings per share because to do so would have been anti-dilutive for the periods presented. These awards were considered anti-dilutive because the exercise price of the award was higher than the market value of the shares. The Amended and Restated Articles of Incorporation of Atlantic Capital authorize Atlantic Capital to issue 110,000,000 shares of capital stock, of which 10,000,000 shares are designated as preferred stock, no par value per share, and 100,000,000 shares are designated as common stock, no par value per share. Atlantic Capital had 21,751,026 and 25,290,419 shares of common stock issued and outstanding at December 31, 2019 and 2018, respectively. The primary source of funds available to Atlantic Capital is payments of dividends from the Bank. The Bank paid dividends totaling $45.5 million and $30.0 million to Atlantic Capital in 2019 and 2018, respectively. Banking laws and other regulations limit the amount of dividends a bank subsidiary may pay without prior regulatory approval. Additionally, Atlantic Capital’s ability to pay dividends to its shareholders will depend on the ability of the Bank to pay dividends to Atlantic Capital. The Bank is subject to regulatory restrictions on the payment of cash dividends, which generally may be paid only from current earnings. On November 14, 2018, the Board of Directors authorized a stock repurchase program pursuant to which the Company may purchase up to $85 million of its issued and outstanding common stock. The timing and amounts of any repurchases depend on certain factors, including but not limited to market conditions and prices, available funds and alternative uses of capital. The stock repurchase program may be carried out through open-market purchases, block trades, negotiated private transactions and pursuant to a trading plan that was adopted in accordance with Rule 10b‑18 and Rule 10b5‑1 under the Securities Exchange Act of 1934. Atlantic Capital repurchased 3,694,902 shares and 822,100 shares in 2019 and 2018, respectively, for a total of $64.8 million and $14.2 million, respectively. Since the announcement of the $85.0 million buyback program in November 2018, Atlantic Capital has repurchased 4.5 million shares totaling $79.0 million. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | NOTE 14 – INCOME TAXES The components of income tax expense from continuing operations included in the Consolidated Statements of Operations for the years ended were as follows: For the year ended December 31, (in thousands) 2019 2018 2017 Current income tax expense (benefit): Federal $ (2,587) $ 3,710 $ (561) State (183) 371 35 Total (2,770) 4,081 (526) Deferred income tax expense (benefit): Federal 9,646 (1,798) 24,354 State 735 4,024 (113) Total 10,381 2,226 24,241 Total income tax from continuing operations $ 7,611 $ 6,307 $ 23,715 The income tax expense differs from the statutory rate of 21% in 2019 and 2018 and 35% in 2017, as indicated in the following analysis: For the year ended December 31, (in thousands) 2019 2018 2017 Tax expense (benefit) based on federal statutory rate $ 7,518 $ 7,215 $ 6,636 State taxes, net of federal benefit 572 899 102 Income tax credits (10) (103) (208) Tax-exempt earnings (822) (717) (1,221) Excess benefit 4 (142) (298) Nondeductible expenses 135 116 361 Change in uncertain tax positions reserve 137 56 (109) Change in valuation allowance (111) (996) (649) Revaluation of deferred tax asset excluding valuation allowance due to tax reform — — 18,983 Other 188 (21) 118 Total income tax from continuing operations $ 7,611 $ 6,307 $ 23,715 Deferred income tax assets and liabilities result from differences between assets and liabilities measured for financial reporting purposes and for income tax return purposes. These assets and liabilities are measured using the enacted tax rates and laws. The net deferred tax asset is included as a component of other assets at December 31, 2019 and 2018, and is comprised of the following: (in thousands) December 31, 2019 December 31, 2018 Net operating loss carryforward $ 15,743 $ 25,992 Federal tax credits 5,342 5,342 State credits — 27 Allowance for loan losses 4,545 4,374 Stock-based compensation 729 699 Other real estate owned 206 371 Transaction costs 152 787 Deferred rent — 815 Lease liability 4,158 — Nonaccrual loan interest 509 530 Net unrealized losses on investment securities available‑for‑sale — 2,950 Net unrealized losses on cash flow hedges — 486 Long term incentive plan 204 471 Other 2,197 2,229 Total gross deferred tax assets 33,785 45,073 Less: valuation allowance (6,698) (7,446) Net deferred tax asset 27,087 37,627 Depreciation 626 1,215 Deferred loan costs 429 365 Other 301 192 Right of use asset - leases 2,944 — Net unrealized gains on investment securities available‑for‑sale 796 — Net unrealized gains on cash flow hedges 725 — Total gross deferred tax liabilities 5,821 1,772 Net deferred tax assets $ 21,266 $ 35,855 In assessing the realizability of deferred tax assets, management considers whether it is more‑likely-than-not that some portion or all of the deferred tax assets will not be realized. A valuation allowance is provided when it is deemed more likely than not that some portion, or all, of the deferred tax asset will not be realized. In assessing the ability to realize the deferred tax assets, management considers the four possible sources of taxable income including future reversals of existing taxable temporary differences, future taxable income, taxable income in prior carryback years and tax-planning strategies that would, if necessary, be implemented. At December 31, 2018, the Company had a valuation allowance of $7.4 million. This valuation allowance relates to the portion of net operating losses and credits that the Company will not be able to utilize due to limitations under Section 382 of the Internal Revenue Code. In the third quarter of 2019, the Company recorded a $700,000 favorable reduction of the valuation allowance on Federal deferred tax assets through discontinued operations from the finalization of the Branch Sale. At December 31, 2019, the Company had a valuation allowance of $6.7 million. ASC 740‑10‑65 prescribes a recognition threshold and a measurement attribute for the financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. The Company has reviewed and evaluated the relevant technical merits of each of its tax positions in accordance with ASC 740‑10‑65 and determined there are no uncertain tax positions that would have a material impact on the financial statements of the Company as of December 31, 2019. A reconciliation of the beginning and ending unrecognized tax benefit related to uncertain tax positions is as follows: (in thousands) 2019 2018 Balance at beginning of year $ 278 $ 216 Additions based on tax positions related to the current year 174 62 Settlement of prior year positions — — Balance at end of year $ 452 $ 278 The amount of unrecognized tax positions that would have impacted the effective tax rate if recognized was $357,000. With the adoption of ASC 740‑10‑65, the Company elected to recognize accrued interest and penalties related to any future unrecognized tax benefits in current income tax expense. Interest in the amount of $65,000 and $51,000 was accrued as of December 31, 2019 and 2018, respectively. The total amount of interest and penalties recognized in current income tax expense during 2019, 2018, and 2017 was $14,000, $11,000 and $3,000, respectively. At December 31, 2019, Atlantic Capital had operating loss carryforwards for federal income tax purposes of $50.2 million, which are available to offset future federal taxable income, if any, through 2035. Atlantic Capital had operating loss carryforwards for state income tax purposes of $101 million, which are available to offset future state taxable income, if any, through 2035. Additionally, Atlantic Capital had general business credits of approximately $5.3 million, which are available to reduce future federal income taxes, if any through 2035. The Company’s income tax returns remain subject to examination by both U.S. federal and state jurisdictions for tax years 2015 forward. |
Employee and Director Benefit P
Employee and Director Benefit Plans | 12 Months Ended |
Dec. 31, 2019 | |
Employee and Director Benefit Plans | |
Employee and Director Benefit Plans | NOTE 15 - EMPLOYEE AND DIRECTOR BENEFIT PLANS Defined Contribution Plan Atlantic Capital sponsors a 401(k) qualified retirement plan that is qualified pursuant to Section 401 of the Internal Revenue Code. The plan is referred to as a “safe harbor 401(k) plan.” The plan allows eligible employees to defer a portion of their income by making contributions into the plan on a pre-tax or post-tax basis. The 401(k) plan has an auto enrollment feature starting with a 1% deferral rate for new participants who meet eligibility requirements. The plan also includes an automatic deferral escalation feature that increases each year up to a maximum participant deferral rate of 5%. The plan provides for a safe harbor matching contribution by Atlantic Capital. The Company will make a matching contribution of 100% on participating employee’s deferrals up to 5% of their eligible compensation. Eligible employees are required to participate in the plan in order to receive the safe harbor matching contribution. The plan also provides that the Board of Directors may authorize matching contributions based on a percentage of the amount contributed by the employee and discretionary profit sharing contributions. Employees of the Company must meet certain requirements concerning minimum age and credited period of service to participate in the plan. During the years ended December 31, 2019, 2018, and 2017, the Company contributed approximately $1.1 million, $1.1 million, and $1.0 million, respectively, to this plan under its safe harbor provision. Long-Term Incentive Plan Atlantic Capital maintains a long-term incentive plan for certain key employees. Bonuses under the Executive Officer Long Term Incentive Plan (the “LTI Plan”) may be paid in lump sum in cash or in common stock or in any combination of cash and common stock. Awards are granted under the LTI Plan for a bonus period, which generally means a period of more than one year. Any shares of common stock earned under the LTI Plan are issued under and subject to the terms of the Company’s 2015 Stock Incentive Plan, as amended and restated. Awards are based on individual performance, business unit, division, or similar performance or Company-wide performance, or any combination of these performance objectives. Awards granted in 2019, 2018, and 2017 are earned, if at all, at the end of a three year period from the date of the awards. Compensation expense for the LTI Plan was $765,000, $879,000, and $1.5 million for the years ended December 31, 2019, 2018, and 2017, respectively. Beginning in 2018, the LTI Plan issued performance share awards under the Company’s 2015 Stock Incentive Plan. The awards granted in 2019 and 2018 are accounted for as equity awards. Previously, in 2017, no performance share awards were issued and LTI Plan awards were accounted for as liabilities and remeasured at each reporting date. Stock Incentive Plans Atlantic Capital sponsors a stock incentive plan for the benefit of directors and employees. Under the Company’s 2015 Stock Incentive Plan (as amended and restated effective May 16, 2018) there were approximately 4,525,000 shares reserved for issuance to directors, employees, and independent contractors of Atlantic Capital and its affiliates. The Compensation Committee has the authority to grant the following: an incentive or nonqualified option; a stock appreciation right (including a related SAR or a freestanding SAR); a restricted award (including a restricted stock award or a restricted stock unit award); a performance award (including a performance share award or a performance unit award); a phantom stock award; an other stock-based award; a cash bonus award; a dividend equivalent award; or any other award granted under the plan. As of December 31, 2019, approximately 3,345,000 additional awards could be granted under the plan. Through December 31, 2019, incentive stock options, nonqualified stock options, restricted stock awards, performance share awards, and other stock-based awards have been granted under the plan. Stock options are granted at a price which is no less than the fair market value of a share of Atlantic Capital common stock on the grant date. Stock options generally vest over three years and expire after ten years. As of December 31, 2019 and 2018, no warrants were outstanding for the purchase of common stock. The Company accounts for stock options in accordance with FASB ASC 718, Stock Compensation , which requires the Company to recognize the costs of its employee stock option awards in its Consolidated Statements of Operations. According to ASC 718, the total cost of the Company’s share‑based awards is equal to their grant date fair value and is recognized as expense on a straight-line basis over the vesting period of the awards. Total stock-based compensation expense recognized by the Company during 2019, 2018, and 2017 for stock option grants was $169,000, $242,000, and $1.1 million, respectively. Unrecognized stock-based compensation expense related to stock option grants at December 31, 2019, 2018, and 2017 was $59,000, $308,000, and $646,000, respectively. At December 31, 2019, 2018, and 2017, the weighted average period over which this unrecognized expense is expected to be recognized was 0.8 years, 1.9 years, and 2.6 years, respectively. The weighted average remaining contractual life of options outstanding at December 31, 2019 was 2.4 years. The Company estimates the fair value of its options awards using the Black‑Scholes option pricing model. The risk-free rate for periods within the contractual life of the option is based on the U.S. Treasury yield curve in effect at the time of grant. The table below summarizes the assumptions used to calculate the fair value of options granted/modified during 2019, 2018, and 2017: For the year ended December 31, 2019 2018 2017 Risk‑free interest rate 2.27 % 1.66 % 1.00-2.42 % Expected term in years 1.73-1.82 0.25 .25-8 Expected stock price volatility 26.8 % 24.2 % 23.2-25.3 % Dividend yield — % — % — % The following table represents stock option activity for the years ended December 31, 2019, 2018, and 2017: Weighted Average Weighted Remaining Aggregate Average Contractual Term Intrinsic Value Shares Exercise Price (in years) (in thousands) Outstanding, December 31, 2018 442,454 $ 12.02 Granted/modified (1) 12,500 10.00 Exercised (90,330) 12.76 Forfeited (1) (38,500) 13.17 Expired (7,144) 17.79 Outstanding, December 31, 2019 318,980 $ 11.47 2.41 $ 2,203 Exercisable, December 31, 2019 308,980 $ 11.36 2.30 $ 2,170 Weighted average fair value of options granted/modified $ 8.07 Outstanding, December 31, 2017 757,711 $ 12.66 Granted/modified (2) 15,000 14.64 Exercised (310,016) 13.21 Forfeited (2) (19,935) 14.08 Expired (306) 105.97 Outstanding, December 31, 2018 442,454 $ 12.02 3.98 $ 1,990 Exercisable, December 31, 2018 396,454 $ 11.67 3.63 $ 1,919 Weighted average fair value of options granted/modified $ 2.79 Outstanding, December 31, 2016 1,485,704 $ 11.69 Granted/modified (3) 229,100 13.53 Exercised (724,912) 10.53 Forfeited (3) (231,546) 13.50 Expired (635) 126.22 Outstanding, December 31, 2017 757,711 $ 12.66 5.56 $ 3,883 Exercisable, December 31, 2017 662,016 $ 12.39 5.24 $ 3,585 Weighted average fair value of options granted/modified $ 7.15 (1) During the year ended December 31, 2019, the Company modified options for 12,500 shares. The modifications are included as shares granted/modified and as shares forfeited in this table. (2) During the year ended December 31, 2018, the Company modified options for 15,000 shares. The modifications are included as shares granted/modified and as shares forfeited in this table. (3) During the year ended December 31, 2017, the Company modified options for 229,100 shares. The modifications are included as shares granted/modified and as shares forfeited in this table The total fair value of shares vested during each of the years ended December 31, 2019, 2018, and 2017, was $208,000, $307,000, and $1.8 million, respectively. In 2019 and 2018, the Company granted performance share awards under Atlantic Capital’s 2015 Stock Incentive Plan to members of executive management to evidence awards granted under the LTI Plan. The Company also granted restricted stock awards to certain employees in 2019 and 2018 under the 2015 Stock Incentive Plan. Compensation expense for restricted stock is based on the fair value of restricted stock awards at the time of grant, which is equal to the value of Atlantic Capital’s common stock on the date of grant. Compensation expense for performance share awards are based on the fair value of Atlantic Capital’s stock at the grant date adjusted for market conditions, as well as the subsequent achievement of performance conditions over the vesting period. The value of restricted stock awards and performance share awards that are expected to vest is amortized into expense over the vesting period. Restricted stock awards may cliff vest over 1‑3 years or vest on a pro-rata basis, generally over 3 years. The market value at the date of award is amortized by charges to compensation expense over the vesting period. Compensation expense related to these awards during 2019, 2018, and 2017 was $1.3 million, $1.5 million, and $1.3 million, respectively. Unrecognized compensation expense associated with restricted stock was $2. 2 million, $2.5 million, and $2.6 million as of December 31, 2019, 2018, and 2017, respectively. At December 31, 2019, 2018, and 2017, the weighted average period over which this unrecognized expense is to be recognized was 2.1 years, 2.4 years, and 3.0 years, respectively. During 2019, 2018, and 2017, respectively, there were 158,593, 139,507, and 132,487 restricted stock and performance share awards granted at a weighted average grant price of $19.19, $19.79, and $17.83. per share. During the year ended December 31, 2019, the Company modified options for 12,500 shares and 4,719 restricted stock awards to two individuals. During the year ended December 31, 2018, the Company modified options for 15,000 shares and 6,869 restricted stock awards to two individuals. Also, during the year ended December 31, 2017, the Company modified options for 229,100 shares and 24,628 restricted stock awards to five individuals. The modifications allowed for the immediate vesting of the awards upon retirement. The total incremental cost resulting from the modifications was approximately $31,000, $111,000 and $709,000 for the years ended December 31, 2019, 2018, and 2017, respectively. The following table represents restricted stock and performance share award activity for the year ended December 31, 2019, 2018, and 2017: Weighted Average Grant- Shares Date Fair Value Outstanding, December 31, 2018 272,695 $ 18.09 Granted/modified (1) 158,593 19.19 Vested (70,748) 16.51 Forfeited (1) (67,663) 18.34 Outstanding, December 31, 2019 292,877 $ 19.00 Outstanding, December 31, 2017 239,468 $ 15.69 Granted/modified (1) 139,507 19.79 Vested (73,686) 14.51 Forfeited (1) (32,594) 15.91 Outstanding, December 31, 2018 272,695 $ 18.09 Outstanding, December 31, 2016 259,165 $ 13.70 Granted/modified (1) 132,487 17.83 Vested (91,671) 13.54 Forfeited (1) (60,513) 15.03 Outstanding, December 31, 2017 239,468 $ 15.69 (1) Durin g the years ended December 31, 2019, 2018, and 2017, the Company modified 4,719, 6,869 and 24,628 restricted stock awards, respectively. The modifications are included as shares granted/modified and as shares forfeited in the table above. |
Derivatives and Hedging
Derivatives and Hedging | 12 Months Ended |
Dec. 31, 2019 | |
Derivatives and Hedging | |
Derivatives and Hedging | NOTE 16 – DERIVATIVES AND HEDGING Risk Management Atlantic Capital’s objectives in using interest rate derivatives are to add stability to net interest revenue and to manage its exposure to interest rate movements. To accomplish this objective, Atlantic Capital primarily uses interest rate swaps as part of its interest rate risk management strategy. Cash Flow Hedges At December 31, 2019, Atlantic Capital’s interest rate swaps designated as cash flow hedges involve the payment of floating-rate amounts to a counterparty in exchange for receiving fixed-rate payments over the life of the agreements without exchange of the underlying notional amount. At December 31, 2019 and 2018, Atlantic Capital had interest rate swaps designated as cash flow hedges with aggregate notional amounts of $175.0 million and $100.0 million, respectively. No hedge ineffectiveness gains or losses were recognized on active cash flow hedges in 2019 or 2018. The effective portion of changes in the fair value of derivatives designated and that qualify as cash flow hedges is recorded in accumulated other comprehensive income and is subsequently reclassified into earnings in the period that the hedged forecasted transaction affects earnings. Atlantic Capital expects that approximately $271,000 will be reclassified as a decrease to loan interest income over the next twelve months related to these cash flow hedges. Customer Swaps Atlantic Capital also enters into derivative contracts, which consist of interest rate swaps, to facilitate the needs of clients desiring to manage interest rate risk. These swaps are not designated as accounting hedges under ASC 815, Derivatives and Hedging . In order to economically hedge the interest rate risk associated with offering this product, Atlantic Capital simultaneously enters into derivative contracts with third parties to offset the customer contracts, such that Atlantic Capital minimizes its net risk exposure resulting from such transactions. The derivative contracts are structured such that the notional amounts reduce over time to generally match the expected amortization of the underlying loans. These derivatives are not speculative and arise from a service provided to clients. Atlantic Capital’s derivative instruments are recorded at fair value in other assets and accrued interest receivable and other liabilities and accrued interest payable in the Consolidated Balance Sheets. The changes in the fair value of the derivative instruments are recognized in derivatives income in the Consolidated Statements of Operations. At December 31, 2019 and 2018, Atlantic Capital had interest rate swaps related to this program with an aggregate notional amount of $ 89.5 million and $109.5 million, respectively. Atlantic Capital acquired a loan level hedging program, which First Security utilized to accommodate clients preferring a fixed rate loan. The loan documents include an addendum with a zero premium collar. The zero premium collar is a cap and a floor at the same interest rate, resulting in a fixed rate to the borrower. To hedge this embedded option, First Security entered into a dealer facing trade exactly mirroring the terms in the loan addendum. At December 31, 2019 and 2018, Atlantic Capital had interest rate swaps related to this program with an aggregate notional amount of $149.1 million and $166.8 million, respectively. Counterparty Credit Risk As a result of its derivative contracts, Atlantic Capital is exposed to credit risk. Specifically approved counterparties and exposure limits are defined. On a quarterly basis, the customer derivative contracts and related counterparties are evaluated for credit risk and an adjustment is made to the contract’s fair value. This adjustment is recognized in the Consolidated Statements of Operations. In accordance with the interest rate agreements with derivatives dealers, Atlantic Capital may be required to post margin to these counterparties. At December 31, 2019 and 2018, Atlantic Capital had minimum collateral posting thresholds with certain of its derivative counterparties and posted collateral of $13.6. million and $5.1 million, respectively, against its obligations under these agreements. Cash collateral related to derivative contracts is recorded in other assets in the Consolidated Balance Sheets. Atlantic Capital has master netting agreements with the derivatives dealers with which it does business, but reflects gross assets and liabilities on the Consolidated Balance Sheets. In conjunction with the FASB’s fair value measurement guidance, management made an accounting policy election to measure the credit risk of its derivative financial instruments that are subject to master netting arrangements on a net basis. To accommodate clients, Atlantic Capital occasionally enters into credit risk participation agreements with counterparty banks to accept a portion of the credit risk related to interest rate swaps. This allows clients to execute an interest rate swap with one bank while allowing for distribution of the credit risk among participating members. Credit risk participation agreements arise when Atlantic Capital contracts with other financial institutions, as a guarantor, to share credit risk associated with certain interest rate swaps. These agreements provide for reimbursement of losses resulting from a third party default on the underlying swap. At December 31, 2019 and 2018, Atlantic Capital had credit risk participation agreements with a notional amount of $7.7 million and $9.5 million, respectively. The following table reflects the estimated fair value positions of derivative contracts and credit risk participation agreements as of December 31, 2019 and 2018: Derivatives designated as hedging instruments under ASC 815 December 31, 2019 December 31, 2018 (in thousands) Balance Sheet Notional Notional Interest Rate Products Location Amount Fair Value Amount Fair Value Cash flow hedge of LIBOR based loans Other assets $ 125,000 $ 3,578 $ — $ — Cash flow hedge of LIBOR based loans Other liabilities $ 50,000 $ 8 $ 100,000 $ 2,029 Derivatives not designated as hedging instruments under ASC 815 December 31, 2019 December 31, 2018 (in thousands) Balance Sheet Notional Notional Interest Rate Products Location Amount Fair Value Amount Fair Value Customer swap positions Other assets $ 44,763 $ 1,025 $ 54,760 $ 756 Zero premium collar Other assets 74,562 4,253 83,385 1,205 $ 119,325 $ 5,278 $ 138,145 $ 1,961 Dealer offsets to customer swap positions Other liabilities $ 44,763 $ 1,090 $ 54,760 $ 770 Dealer offset to zero premium collar Other liabilities 74,562 4,545 83,385 1,226 Credit risk participation Other liabilities 7,657 4 9,532 2 $ 126,982 $ 5,639 $ 147,677 $ 1,998 The following table presents the effect of the Company’s derivative financial instruments that are not designated as hedging instruments on the Consolidated Statements of Operations for the years ended December 31, 2019 and 2018: Derivatives not designated as hedging instruments under ASC 815 Location of Gain or Amount of Gain or (Loss) (Loss) Recognized in Recognized in Income on Derivative (in thousands) Income on Derivative Year Ended December 31, 2019 2018 Interest rate products Other income / (expense) $ (321) $ 79 Other contracts Other income / (expense) (1) 2 Total $ (322) $ 81 Fee income Other income / (expense) $ — $ 227 The following table reflects the impact to the Consolidated Statements of Operations related to derivative contracts for the years ended December 31, 2019 and 2018: Derivatives in Cash Flow Hedging Relationships Amount of Gain or (Loss) Recognized in OCI on Derivatives Gain or (Loss) Reclassified from Accumulated OCI in Income (Effective Portion) (Effective Portion) (in thousands) 2019 2018 Location 2019 2018 Interest rate swaps $ 4,487 $ (1,229) Interest income $ (356) $ 26 |
Regulatory Matters
Regulatory Matters | 12 Months Ended |
Dec. 31, 2019 | |
Regulatory Matters | |
Regulatory Matters | NOTE 17 – REGULATORY MATTERS The Company and the Bank are subject to various regulatory capital requirements administered by the federal banking agencies. Failure to meet minimum capital requirements can initiate certain mandatory and possibly additional discretionary actions by regulators that, if undertaken, could have a direct material effect on the Company’s and the Bank’s financial statements. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, the Company and the Bank must meet specific capital guidelines that involve quantitative measures of the Company’s and the Bank’s assets, liabilities, and certain off-balance sheet items as calculated under regulatory accounting practices. The Company’s and the Bank’s capital amounts and classifications are also subject to qualitative judgments by the regulators about components, risk weightings, and other factors. On January 1, 2015, the Company became subject to Basel III rules, which include transition provisions through January 1, 2019. Under Basel III, total capital consists of two tiers of capital, Tier 1 and Tier 2. Tier 1 capital is further composed of Common Equity Tier 1 Capital and additional Tier 1 capital. The transition provisions include important differences in determining the composition of regulatory capital between the Basel I rules and Basel III rules including, changes in capital deductions related to the Company’s deferred tax assets, and the inclusion of unrealized gains and losses on AFS debt and certain marketable equity securities recorded in accumulated other comprehensive income (“AOCI”). These changes are impacted by, among other things, future changes in interest rates, overall earnings performance and company actions. Changes to the composition of regulatory capital under Basel III, as compared to the Basel I rules, are recognized in 20% annual increments, and were fully recognized as of January 1, 2019. When presented on a fully phased-in basis, capital, risk-weighted assets and the capital ratios assume all regulatory capital adjustments and deductions are fully recognized. Common Equity Tier 1 Capital primarily includes qualifying common shareholders’ equity, retained earnings, accumulated other comprehensive income and certain minority interests. Goodwill, disallowed intangible assets and certain disallowed deferred tax assets are excluded from Common Equity Tier 1 Capital. Additional Tier 1 capital primarily includes qualifying non-cumulative preferred stock, trust preferred securities subject to phase-out and certain minority interests. Certain deferred tax assets are also excluded. Tier 2 capital primarily consists of qualifying subordinated debt, a limited portion of the allowance for loan and lease losses, trust preferred securities subject to phase-out and reserves for unfunded lending commitments. The Company’s total capital is the sum of Tier 1 capital plus Tier 2 capital. To meet adequately capitalized regulatory requirements, an institution must maintain a Common Equity Tier 1 Capital of 4.5%, a Tier 1 capital ratio of 6.0%, and a Total capital ratio of 8.0%. A “well-capitalized” institution must generally maintain capital ratios 200 basis points higher than the minimum guidelines. The risk-based capital rules have been further supplemented by a Tier 1 leverage ratio, defined as Tier 1 capital divided by quarterly average total assets, after certain adjustments. The Bank must maintain a Tier 1 leverage ratio of at least 5.0% to be classified as “well capitalized.” Failure to meet the capital requirements established by the joint agencies can lead to certain mandatory and discretionary actions by regulators that could have a material adverse effect on the Company’s consolidated financial statements. The Basel III rules also introduced a capital conservation buffer which is fully phased in and is 2.5% of risk-weighted assets for 2019 and thereafter. Failure to maintain the required capital conservation buffer will result in limitations on capital distributions and on discretionary bonuses to executive officers. The Basel III rules were implemented in the first quarter of 2015. The Company opted out of the AOCI treatment under these requirements and, as such, unrealized security gains and losses will continue to be excluded from bank regulatory capital. As of December 31, 2019 and 2018, the Bank was categorized as well capitalized under the regulatory framework for prompt corrective action. Management believes there are no conditions or events since the previous notification that have changed the institution’s categorizations. The Company’s and the Bank’s actual capital amounts and ratios are presented in the table below: As of December 31, 2019 To be Well Capitalized Under For Capital Adequacy Prompt Corrective Action Actual Purposes Provisions (dollars in thousands) Amount Ratio Amount Ratio Amount Ratio Common Equity Tier 1 capital (to risk weighted assets): Consolidated $ 285,456 12.0 % $ 106,740 4.5 % N/A N/A Bank 327,426 13.8 % 106,698 4.5 % 154,119 6.5 % Tier 1 capital (to risk weighted assets): Consolidated $ 285,456 12.0 % $ 189,760 8.0 % N/A N/A Bank 327,426 13.8 % 189,685 8.0 % 237,107 10.0 % Total capital (to risk weighted assets): Consolidated $ 354,757 15.0 % $ 142,320 6.0 % N/A N/A Bank 346,854 14.6 % 142,264 6.0 % 189,685 8.0 % Tier 1 capital (to average assets): Consolidated $ 285,456 11.0 % $ 103,596 4.0 % N/A N/A Bank 327,426 12.7 % 103,425 4.0 % 129,281 5.0 % As of December 31, 2018 To be Well Capitalized For Capital Adequacy Under Prompt Corrective Actual Purposes Action Provisions Amount Ratio Amount Ratio Amount Ratio Common Equity Tier 1 capital (to risk weighted assets): Consolidated $ 285,250 11.5 % $ 112,033 4.5 % N/A N/A Bank 304,907 12.3 % 112,022 4.5 % 161,809 6.5 % Tier 1 capital (to risk weighted assets): Consolidated $ 285,250 11.5 % $ 149,378 6.0 % N/A N/A Bank 304,907 12.3 % 149,362 6.0 % 199,150 8.0 % Total capital (to risk weighted assets): Consolidated $ 353,458 14.2 % $ 199,170 8.0 % N/A N/A Bank 323,411 13.0 % 199,150 8.0 % 248,937 10.0 % Tier 1 capital (to average assets): Consolidated $ 285,250 10.0 % $ 113,705 4.0 % N/A N/A Bank 304,907 10.6 % 114,574 4.0 % 143,218 5.0 % |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 31, 2019 | |
Fair Value Measurements | |
Fair Value Measurements | NOTE 18 – FAIR VALUE MEASUREMENTS Atlantic Capital follows the guidance pursuant to ASC No. 820‑10, Fair Value Measurements and Disclosures . This guidance defines fair value, establishes a framework for measuring fair value and expands disclosures about fair value measurements. This issuance applies to reported balances that are required or permitted to be measured at fair value under existing accounting pronouncements; accordingly, the standard does not require any new fair value measurements of reported balances. Atlantic Capital measures its investment securities and interest rate derivative assets and liabilities at fair value on a recurring basis. Fair value is used on a nonrecurring basis either when assets are evaluated for impairment or for disclosure purposes. Atlantic Capital measures its servicing assets, goodwill, intangible assets, loans held for sale, impaired loans and other real estate owned at fair value on a nonrecurring basis if necessary. The guidance emphasizes that fair value is a market-based measurement, not an entity-specific measurement and defines fair value as the price that could be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. As a basis for considering market participant assumptions in fair value measurements, this guidance establishes a fair value hierarchy that distinguishes between market participant assumptions based on market data obtained from sources independent of the reporting entity (observable inputs that are classified within Levels 1 and 2 of the hierarchy) and the reporting entity’s own assumptions about market participant assumptions (unobservable inputs classified within Level 3 of the hierarchy). Atlantic Capital applied the following fair value hierarchy: Level 1 – Assets or liabilities for which the identical item is traded on an active exchange, such as publicly-traded instruments or futures contracts. Level 2 – Assets or liabilities valued based on observable market data for similar instruments. Level 3 – Assets or liabilities for which significant valuation assumptions are not readily observable in the market, instruments valued based on the best available data, some of which is internally-developed, and risk premiums that a market participant would require. In instances where the determination of the fair value measurement is based on inputs from different levels of the fair value hierarchy, the level in which the entire fair value measurement falls is based on the lowest level input that is significant to the fair value measurement. There were no transfers between Level 1 and Level 2 or Level 2 and Level 3 during 2019 or 2018. Atlantic Capital records investment securities available-for-sale at fair value on a recurring basis. Investment securities classified as available-for-sale are reported at fair value utilizing Level 2 inputs. For these securities, Atlantic Capital obtains fair value measurements from an independent pricing service. In estimating the fair values for investment securities, Atlantic Capital believes that independent third-party market prices are the best evidence of an exit price. The fair value measurements consider observable data that may include dealer quotes, market spreads, cash flows, the Treasury Department yield curve, trade execution data, market consensus prepayment speeds, credit information and the securities’ terms and conditions, among other things. Derivative instruments are primarily transacted as over-the-counter trades and priced with observable market assumptions. Ongoing measurements include observable market assumptions with appropriate valuation adjustments for liquidity and for credit risk of counterparties and Atlantic Capital’s own credit. For these instruments, Atlantic Capital obtains fair value measurements from an independent pricing service. The fair value measurements consider factors such as the likelihood of default by Atlantic Capital and its counterparties, total exposure and remaining maturities in determining the appropriate fair value adjustments to record. Generally, the expected loss of each client counterparty is estimated using Atlantic Capital’s internal risk rating system. For financial institution counterparties that are rated by national rating agencies, those ratings are used in determining the credit risk. This approach used to estimate exposures to counterparties is also used by Atlantic Capital to estimate its own credit risk on derivative liability positions. Assets and Liabilities Measured at Fair Value on a Recurring Basis The following tables present assets and liabilities that were measured at fair value on a recurring basis by level within the fair value hierarchy as reported in the Consolidated Balance Sheets at December 31, 2019 and 2018. Fair Value Measurements at December 31, 2019 Using: Quoted Prices in Active Significant Markets for Other Significant Identical Observable Unobservable Securities Inputs Inputs (Level 1) (Level 2) (Level 3) Total (in thousands) Securities available-for-sale— U.S. states and political subdivisions $ — $ 82,485 $ — $ 82,485 Trust preferred securities — 4,688 — 4,688 Corporate debt securities — 19,920 — 19,920 Mortgage-backed securities — 175,368 — 175,368 Total securities available-for-sale $ — $ 282,461 $ — $ 282,461 Interest rate derivative assets $ — $ 8,856 $ — $ 8,856 Interest rate derivative liabilities $ — $ 5,647 $ — $ 5,647 Fair Value Measurements at December 31, 2018 Using: Quoted Prices in Active Significant Markets for Other Significant Identical Observable Unobservable Securities Inputs Inputs (Level 1) (Level 2) (Level 3) Totals (in thousands) Securities available-for-sale— U.S. government agencies $ — $ 26,849 $ — $ 26,849 U.S. states and political subdivisions — 84,834 — 84,834 Trust preferred securities — 4,400 — 4,400 Corporate debt securities — 12,363 — 12,363 Mortgage-backed securities — 274,040 — 274,040 Total securities available-for-sale $ — $ 402,486 $ — $ 402,486 Interest rate derivative assets $ — $ 1,961 $ — $ 1,961 Interest rate derivative liabilities $ — $ 4,027 $ — $ 4,027 For Level 3 securities where quoted prices or market prices of similar securities are not available, fair values are calculated using discounted cash flows or other market indicators. Atlantic Capital had no Level 3 securities as of December 31, 2019 and 2018. For the years ended December 31, 2019 and 2018, there was not a change in the methods and significant assumptions used to estimate fair value. Assets and Liabilities Measured at Fair Value on a Non-Recurring Basis The following table presents the assets that were measured at fair value on a nonrecurring basis by level within the fair value hierarchy as reported in the Consolidated Balance Sheets at December 31, 2019 and December 31, 2018 . Level 1 Level 2 Level 3 Fair Value Fair Value Fair Value December 31, 2019 Measurement Measurement Measurement Total (in thousands) Impaired Loans $ — $ — $ 4,288 $ 4,288 Level 1 Level 2 Level 3 Fair Value Fair Value Fair Value December 31, 2018 Measurement Measurement Measurement Total (in thousands) Impaired Loans $ — $ — $ 1,836 $ 1,836 Level 3 loans consist of impaired loans which have been partially charged-off or have specific valuation allowances. The fair value of Level 3 assets is estimated based on the underlying collateral value. For loans which the cash proceeds from the sale of the underlying collateral is the expected source of repayment, the fair value of these loans was derived from internal estimates of the underlying collateral incorporating market data, including third party appraisals or evaluations, when available. Appraised values may be discounted based on management’s assessment of the level of inactivity in the real estate market and other markets for the underlying collateral, changes in market conditions from the time of the valuation, and other information that in management’s judgment may affect the value. Impaired loans are evaluated on at least a quarterly basis and adjusted accordingly. Assets and Liabilities Not Measured at Fair Value For financial instruments that have quoted market prices, those quotes are used to determine fair value. Financial instruments that have no defined maturity, have a remaining maturity of 180 days or less, or reprice frequently to a market rate, are assumed to have a fair value that approximates the reported book value, after taking into consideration any applicable credit risk. If no market quotes are available, financial instruments are valued by discounting the expected cash flows using an estimated current market interest rate for the financial instrument. For loans held for investment, fair value is measured using the exit price notion. For off-balance sheet derivative instruments, fair value is estimated as the amount that Atlantic Capital would receive or pay to terminate the contracts at the reporting date, taking into account the current unrealized gains or losses on open contracts. The short maturity of Atlantic Capital’s assets and liabilities results in having a significant number of financial instruments whose fair value equals or closely approximates carrying value. Such financial instruments are reported in the following balance sheet captions: cash and due from banks, interest-bearing deposits in other banks, other short-term investments, and FHLB stock. The fair value of securities equals quoted market prices, if available. If a quoted market price is not available, fair value is estimated used quoted market prices for similar securities or dealer quotes. Due to the short-term settlement of accrued interest receivable and payable, the carrying amount closely approximates fair value. Fair value estimates are made at a specific point in time, based on relevant market information and information about the financial instrument. These estimates do not reflect the premium or discount on any particular financial instrument that could result from the sale of Atlantic Capital’s entire holdings. Because no ready market exists for a significant portion of Atlantic Capital’s financial instruments, fair value estimates are based on many judgments. These estimates are subjective in nature, involve uncertainties and matters of significant judgment, and therefore cannot be determined with precision. Changes in assumptions could significantly affect the estimates. Off-balance sheet financial instruments (commitments to extend credit and standby letters of credit) are generally short-term and at variable rates. Therefore, both the carrying amount and the estimated fair value associated with these instruments are immaterial. The following tables present the estimated fair values of Atlantic Capital’s financial instruments at December 31, 2019 and December 31, 2018. Fair Value Measurements at December 31, 2019 Using: Quoted Prices in Active Significant markets for Other Significant Identical Observable Unobservable Carrying Securities Inputs Inputs Amount (Level 1) (Level 2) (Level 3) (in thousands) Financial assets: Cash and due from banks $ 45,249 $ 45,249 $ — $ — Interest-bearing deposits in banks 421,079 421,079 — — Total securities available-for-sale 282,461 — 282,461 — Total securities held-to-maturity 116,972 — 115,291 — FHLB stock 2,680 — — 2,680 Federal Reserve Bank stock 9,998 — — 9,998 Loans held for investment, net 1,873,524 — — 1,890,258 Loans held for sale 370 — 370 — Derivative assets 8,856 — 8,856 — Financial liabilities: Deposits $ 2,499,046 $ — $ 2,421,957 $ — Subordinated debt 49,873 — 50,081 — Derivative financial instruments 5,647 — 5,647 — Fair Value Measurements at December 31, 2018 Using: Quoted Prices in Active Significant markets for Other Significant Identical Observable Unobservable Carrying Securities Inputs Inputs Amount (Level 1) (Level 2) (Level 3) (in thousands) Financial assets: Cash and due from banks $ 42,895 $ 42,895 $ — $ — Interest-bearing deposits in other banks 216,040 216,040 — — Other short-term investments 9,457 9,457 — — Total securities available-for-sale 402,486 — 402,486 — FHLB stock 2,622 — — 2,622 Federal Reserve Bank stock 9,906 — — 9,906 Loans held for investment, net 1,710,222 — — 1,740,438 Loans held for sale 5,889 — 5,889 — Loans held for sale - discontinued operations 373,030 — 373,030 — Derivative assets 1,961 — 1,961 — Financial liabilities: Deposits $ 1,952,514 $ — $ 1,830,673 $ — Deposits to be assumed - discontinued operations 585,429 — 585,429 — Securities sold under agreements to repurchase - discontinued operations 6,220 6,220 — — Subordinated debt 49,704 — 48,960 — Derivative financial instruments 4,027 — 4,027 — In accordance with the adoption of ASU 2016‑01 in 2018, the methods used to measure the fair value of financial instruments at December 31, 2019 represent an approximation of exit price, however, an actual exit price may differ. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2019 | |
Commitments and Contingencies | |
Commitments and Contingencies | NOTE 19 – COMMITMENTS AND CONTINGENCIES Atlantic Capital is a party to financial instruments with off-balance sheet risk in the normal course of business to meet the financing needs of its customers. These financial instruments include commitments to extend credit and letters of credit, most of which are standby letters of credit. These instruments involve, to varying degrees, elements of credit risk in excess of the amounts recognized in the Consolidated Balance Sheets. The contract amounts of these instruments reflect the extent of involvement Atlantic Capital has in particular classes of financial instruments. Standby letters of credit are written conditional commitments issued by Atlantic Capital to guarantee the performance of a customer to a third party. Those guarantees are primarily issued to support public and private borrowing arrangements. Most letters of credit expire in less than one year. The credit risk involved in issuing letters of credit is essentially the same as that involved in extending loan facilities to customers. Atlantic Capital’s exposure to credit loss in the event of nonperformance by the other party to the financial instrument for commitments to extend credit and standby letters of credit is represented by the contractual amount of those instruments. Atlantic Capital uses the same credit policies in making commitments and conditional obligations as it does for on-balance sheet instruments. Atlantic Capital’s maximum exposure to credit risk for unfunded loan commitments and standby letters of credit as well as a summary of minimum lease payments at December 31, 2019 and December 31, 2018 were as follows: December 31, 2019 December 31, 2018 (in thousands) Financial Instruments whose contract amount represents credit risk: Commitments to extend credit $ 735,905 $ 715,591 Standby letters of credit 8,053 15,650 $ 743,958 $ 731,241 Minimum lease payments $ 20,055 $ 22,014 The Company also had commitments related to investment in SBICs totaling $2.4 million and $3.2 million at December 31, 2019 and 2018, respectively. Atlantic Capital, in the normal course of business, is subject to various pending and threatened lawsuits in which claims for monetary damages are asserted. Although it is not possible to predict the outcome of these lawsuits, or the range of any possible loss, management, after consultation with legal counsel, does not anticipate that the ultimate aggregate liability, if any, arising from these lawsuits will have a material adverse effect on Atlantic Capital’s financial position or results of operations. |
Revenue Recognition
Revenue Recognition | 12 Months Ended |
Dec. 31, 2019 | |
Revenue Recognition | |
Revenue Recognition | NOTE 20 – REVENUE RECOGNITION On January 1, 2018, the Company adopted ASU No. 2014‑09 “Revenue from Contracts with Customers” (Topic 606) and all subsequent ASUs that modified Topic 606. As stated in Note 2, Accounting Standards Updates and Recently Adopted Standards , the implementation of the new standard did not result in any significant changes to the Company’s methodology of recognizing revenue; as such, the Company recorded a cumulative effect adjustment to first quarter 2018 opening retained earnings in an amount of approximately $1,000. Results for reporting periods beginning after January 1, 2018 are presented under Topic 606, while prior period amounts were not adjusted and continue to be reported in accordance with the Company’s historic accounting under Topic 605. Topic 606 does not apply to revenue associated with financial instruments, including revenue from loans and securities. In addition, certain noninterest income streams such as fees associated with financial guarantees and derivatives are also not in scope of the new guidance. Topic 606 is applicable to noninterest revenue streams such as service charges on deposit accounts and trust and asset management income. However, the recognition of these revenue streams did not change significantly upon adoption of Topic 606. Substantially all of the Company’s revenue is generated from contracts with customers. Noninterest revenue streams within the scope of Topic 606 are discussed below. Service Charges on Deposit Accounts Service charges represent general service fees for monthly account maintenance and activity, or transaction-based fees and consist of transaction-based revenue, time-based revenue (service period), item-based revenue or some other individual attribute-based revenue. Revenue is recognized when the performance obligation is completed which is generally monthly for account maintenance services or when a transaction has been completed, such as a wire transfer or ATM withdrawal. Payment for such performance obligations are generally received at the time the performance obligations are satisfied. The following table presents service charges by type of service provided for the years ended December 31, 2019, 2018, and 2017: Year Ended December 31, 2019 2018 2017 (in thousands) Deposit account analysis fees and charges $ 2,630 $ 2,166 $ 1,785 ATM fees 58 223 234 NSF fees 57 97 74 Wire fees 483 426 356 Foreign exchange fees 352 288 258 Other 7 15 27 Total service charges - continuing operations 3,587 3,215 2,734 Service charges - discontinued operations 527 1,922 2,342 Total service charges $ 4,114 $ 5,137 $ 5,076 Trust and Asset Management Trust and asset management income is primarily comprised of fees earned from the management and administration of trusts and other customer assets. The Company’s performance obligation is generally satisfied over time and the resulting fees are recognized monthly, based upon the month-end market value of the assets under management and the applicable fee rate. Payment is generally received a few days after month end through a direct charge to customers’ accounts. The Company’s performance obligation for these transactional-based services is generally satisfied, and related revenue recognized, at a point in time (i.e., as incurred). Payment is received shortly after services are rendered. During the second quarter of 2018, Atlantic Capital sold its trust business. The following table presents trust income by type of service provided for the years ended December 31, 2018, and 2017: 2018 2017 Personal trust and agency accounts $ 615 $ 1,012 Employee benefit and retirement-related trust and agency accounts 120 225 Investment management and investment advisory agency accounts 216 355 Custody and safekeeping accounts 26 68 Other 48 154 $ 1,025 $ 1,814 Other Other noninterest income consists of other recurring revenue streams such as check printing income, safety deposit box rental fees, and other miscellaneous revenue streams. Check printing income is recognized ratably over the contract period as the Company satisfies its performance obligation to sell a specific number of check packages. Safe deposit box rental fees are charged to the customer annually and recognized upon receipt of payment. The Company determined that since rentals and renewals occur fairly consistently over time, revenue is recognized on a basis consistent with the duration of the performance obligation. Contract Balances A contract asset balance occurs when an entity performs a service for a customer before the customer pays consideration (resulting in a contract receivable) or before payment is due (resulting in a contract asset). A contract liability balance is an entity’s obligation to transfer a service to a customer for which the entity has already received payment (or payment is due) from the customer. The Company’s noninterest revenue streams are largely based on transactional activity, or standard month-end revenue accruals such as asset management fees based on month-end market values. Consideration is often received immediately or shortly after the Company satisfies its performance obligation and revenue is recognized. The Company does not typically enter into long-term revenue contracts with customers, and therefore, does not experience significant contract balances. As of December 31, 2019 and 2018, the Company did not have any significant contract balances. |
Atlantic Capital Bancshares, In
Atlantic Capital Bancshares, Inc. (Parent Company Only) Financial Information | 12 Months Ended |
Dec. 31, 2019 | |
Atlantic Capital Bancshares, Inc. (Parent Company Only) Financial Information | |
Atlantic Capital Bancshares, Inc. (Parent Company Only) Financial Information | NOTE 21 – ATLANTIC CAPITAL BANCSHARES, INC. (PARENT COMPANY ONLY) FINANCIAL INFORMATION Balance Sheets (in thousands) December 31, 2019 2018 Assets Cash $ 7,752 $ 30,568 Investment in subsidiary 368,465 343,311 Other assets 938 260 Total assets $ 377,155 $ 374,139 Liabilities and shareholders’ equity Long-term debt $ 49,873 $ 49,704 Other liabilities 787 782 Total liabilities 50,660 50,486 Shareholders’ equity: Common stock 230,265 291,771 Retained earnings 91,669 42,187 Accumulated other comprehensive income 4,561 (10,305) Total shareholders’ equity 326,495 323,653 Total liabilities and shareholders’ equity $ 377,155 $ 374,139 Statements of Operations (in thousands) Year Ended December 31, 2019 2018 2017 Income: Interest income $ — $ 381 $ 197 Total income — 381 197 Expense: Interest on long-term debt 3,294 3,304 3,294 Other expense 1,231 1,134 1,113 Total expense 4,525 4,438 4,407 Loss before income tax expense and equity in undistributed (losses) earnings from subsidiary (4,525) (4,057) (4,210) Income tax benefit (1,217) (1,091) (1,681) Loss before equity in undistributed (losses) earnings of subsidiary (3,308) (2,966) (2,529) Equity in undistributed earnings (losses) of subsidiary 53,163 31,498 (1,197) Net income (loss) $ 49,855 $ 28,532 $ (3,726) Statements of Cash Flows (in thousands) Year Ended December 31, 2019 2018 2017 Operating activities Net (loss) income $ 49,855 $ 28,532 $ (3,726) Adjustments to reconcile net income to net cash provided by (used in) operating activities: Equity in undistributed earnings of subsidiary (53,163) (31,498) 1,197 Decrease (increase) in other assets (1,521) (705) (1,264) (Decrease) increase in other liabilities 173 169 (1,354) Net cash provided by (used in) operating activities (4,656) (3,502) (5,147) Investing activities Net cash (used in) provided by investing activities — — — Financing activities Proceeds from exercise of stock options 1,154 4,096 3,567 Cash dividends received 45,500 30,000 — Repurchase of common stock (64,814) (14,177) — Net cash provided by financing activities (18,160) 19,919 3,567 Net (decrease) increase in cash and cash equivalents (22,816) 16,417 (1,580) Cash equivalents, beginning of year 30,568 14,151 15,731 Cash equivalents, end of year $ 7,752 $ 30,568 $ 14,151 |
Accounting Policies and Basis_2
Accounting Policies and Basis of Presentation (Policies) | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Standards Updates and Recently Adopted Standards | |
Basis of Presentation | Basis of Presentation The accounting and financial reporting policies of Atlantic Capital Bancshares, Inc. (“Atlantic Capital”) and its subsidiary conform to accounting principles generally accepted in the United States of America (“GAAP”) and general banking industry practices. All material intercompany balances and transactions have been eliminated. In management’s opinion, all accounting adjustments necessary to accurately reflect the financial position and results of operations on the accompanying financial statements have been made. These adjustments are normal and recurring accruals considered necessary for a fair and accurate presentation. Certain prior period amounts have been reclassified to conform to the current year presentation. As discussed in Note 3 - Divestitures and Discontinued Operations, prior periods presented in the consolidated statements of operations as well as the related note disclosures covering income and expense amounts have been retrospectively adjusted for the impact of discontinued operations for comparative purposes. The consolidated balance sheets and related note disclosures for prior periods also reflect the reclassification of certain assets and liabilities related to discontinued operations to held for sale. |
Cash and Cash Equivalents | Cash and Cash Equivalents Cash and cash equivalents include cash and due from banks, interest-bearing deposits in other banks, commercial paper, federal funds sold and reverse repurchase agreements. Generally, cash and cash equivalents have maturities of three months or less and, accordingly, the carrying amount of these instruments is deemed to be a reasonable estimate of fair value. Reverse repurchase agreements are not subject to netting and offset with repurchase agreements. |
Investment Securities | Investment Securities Investment securities designated as available-for-sale are stated at fair value. Investment securities available-for-sale include securities that may be sold in response to changes in interest rates, changes in prepayment risk, liquidity needs, or for other purposes. Held-to-maturity securities are recorded at cost, adjusted for the amortization or accretion of premiums or discounts. Interest income and dividends on securities are recognized in interest income on an accrual basis. Premiums and discounts on debt securities are amortized or accreted over the life of the related security as an adjustment of the yield. Realized gains and losses are included in earnings and the cost of securities sold is derived using the specific identification method. Unrealized gains and losses, net of the related tax effect, on securities available-for-sale are excluded from earnings and are reported as a separate component of shareholders’ equity. Securities are reviewed for other-than-temporary impairment (“OTTI”). A security is considered to be impaired if the fair value is less than its amortized cost basis at the measurement date. The Company determines whether a decline in fair value below the amortized cost basis is other-than-temporary. The Company determines whether it has the intent to sell the debt security or whether it is more likely than not that it will be required to sell the debt security before the recovery of its amortized cost basis. If either of these conditions is met, the Company must recognize the entire impairment in the Consolidated Statements of Operations and write the debt security down to fair value. For debt securities which the Company does not expect to recover the entire amortized cost basis of the security and which do not meet either condition, an OTTI loss is considered to have occurred. The credit loss portion of impairment is recorded as a realized loss in the Consolidated Statements of Operations and the temporary impairment related to all other factors is recorded in accumulated other comprehensive income, a component of shareholders’ equity. |
Federal Home Loan Bank Stock/Federal Reserve Bank Stock | Federal Home Loan Bank Stock/Federal Reserve Bank Stock The Company holds stock in the Federal Home Loan Bank of Atlanta (“FHLB”) and Federal Reserve Bank (“FRB”). The Company accounts for the stock based on the industry guidance in Accounting Standard Codification 325‑942, Investments - Other , which requires the investment be carried at cost and be evaluated for impairment based on the ultimate recoverability of the par value. The Company evaluated its holdings in FHLB and FRB stock at December 31, 2019 and 2018, and believes its holdings in the stock are ultimately recoverable at par. |
Discontinued Operations | Discontinued Operations Portions of the Company that were disposed of by sale, and that represented a strategic shift that had a major effect on operations and financial results, were accounted for as discontinued operations. Additional information on discontinued operations can be found in Note 3 - Divestitures and Discontinued Operations. |
Loans Held for Investment | Loans Held for Investment Loans are stated at the amount of unpaid principal, net of the allowance for loan losses, deferred income (net of deferred costs) and other unearned income. Interest income on loans is recognized using the effective yield method on the daily balances of the principal amount outstanding. Loan origination fees, net of direct loan origination costs, commitment fees, premiums and discounts are deferred and amortized as an adjustment to yield over the life of the loan, or over the commitment period, as applicable. Loans are considered to be past due when payment is not received from the borrower by the contractually specified due date. Interest accruals on loans are discontinued when interest or principal has been in default 90 days or more, unless the loan is secured by collateral that is sufficient to repay the debt in full and the loan is in the process of collection. When a loan is placed on nonaccrual status, interest accrued and not paid in the current accounting period is reversed against current period income. Interest accrued and not paid in prior periods, if significant, is reversed against the allowance for loan losses. Income on such loans is subsequently recognized on a cash basis as long as the future collection of principal is deemed probable or after all principal payments are received. Commercial loans are placed back on accrual status after sustained performance of timely and current principal and interest payments and it is probable that all remaining amounts due, both principal and interest, are fully collectible according to the terms of the loan agreement. Residential loans and consumer loans are generally placed back on accrual status when they are no longer past due. A loan is considered to be impaired when, based on current information and events, it is probable that all amounts due according to the contractual terms of the loan agreement will not be collected. A specific allowance is established for individually evaluated impaired loans as needed. Reserves on impaired loans are measured based on the present value of expected future cash flows discounted at the loan’s effective interest rate or the observable market price, or the fair value of the underlying collateral of the loan if the loan is collateral dependent. The Company evaluates loans in accordance with the provisions within the Financial Accounting Standards Board (“FASB”) ASC 310‑40, Troubled Debt Restructurings by Creditors . Troubled debt restructurings (“TDRs”) are loans in which the Company has modified the terms and granted an economic concession to a borrower who is experiencing financial difficulties. These modifications may include interest rate reductions, term extensions and other concessions intended to minimize losses. Typically, loans accruing interest at the time of the modification remain on accrual status and are subject to the Company’s charge-off and nonaccrual policies. Loans on nonaccrual prior to modification remain on nonaccrual. TDRs may be returned to accrual status as outlined above. Interest income recognition on impaired loans is dependent upon nonaccrual status and loan type as discussed above. During the year ended December 31, 2015, the Company acquired loans through a business combination. Certain loans showed evidence of credit deterioration (see discussion below). A majority of the acquired loans did not show signs of credit deterioration and were accounted for under ASC 310‑20. As such, the difference between the fair value and the unpaid principal balance of loans at acquisition is accreted into interest income over the life of the loan. In the third quarter of 2012, the Bank entered into a sub-participation agreement with a commercial bank (the participating bank), whereby pursuant to the sub-participation agreement, the Bank purchases participation interests in single-family mortgage loans from the participating bank that has purchased ownership interests from unaffiliated mortgage originators that seek funding to facilitate the origination of single-family residential mortgage loans for sale in the secondary market. The originators underwrite and close mortgage loans consistent with established standards of approved investors and, once the sales close, the originators and the participating bank deliver the loans to the investors. Typically, the participating bank purchases up to an aggregate of a 99% ownership interest with the originators retaining the remaining 1% interest. The Bank typically purchases a 40% or less interest in the mortgage warehouse loans from the participating bank. These loans are held for short periods, usually less than 30 days. These mortgage warehouse loans are classified as held for investment as of December 31, 2019, and 2018. |
Loans Held for Sale | Loans Held for Sale The Company had loans held-for-sale related to branch divestitures and also, at times, will have loans held for sale in connection with the SBA department. Loans held-for-sale are carried at lower of cost or market on an individual loan basis. Held-for-investment loans that have been transferred to held-for-sale are carried at lower of cost or fair value. Fair value is determined from observable current market prices. The credit component of any charge-off upon transfer to held-for-sale is reflected in the allowance for loan losses. |
Purchased Loans With Evidence of Credit Deterioration | Purchased Loans With Evidence of Credit Deterioration During the year ended December 31, 2015, Atlantic Capital purchased loans through a business combination transaction. Some of those purchased loans showed evidence of credit deterioration since origination and are accounted for pursuant to ASC 310‑30, Loans and Debt Securities Acquired with Deteriorated Credit Quality . These purchased credit impaired (“PCI”) loans are recorded at their estimated fair value at date of purchase. PCI loans are aggregated into pools of loans based on common risk characteristics such as the type of loan, payment status, or collateral type. Atlantic Capital estimates the amount and timing of expected cash flows for each purchased loan pool and the expected cash flows in excess of the fair value of the loans are recorded as interest income over the remaining life of the pool (accretable yield). The excess of the pool’s contractual principal and interest over expected cash flows is not recorded (nonaccretable difference). At least quarterly and over the life of the loan pool, expected cash flows continue to be estimated. Increases in estimated cash flows are recognized on a prospective basis as interest income over the remaining life of the loan. Decreases in expected cash flows result in the recognition of a provision for loan loss. As of December 31, 201 8, PCI loans were reclassified to held for sale |
Allowance for Loan Losses | Allowance for Loan Losses The allowance for loan losses is established through the provision for loan losses charged against earnings and is maintained at a level that management considers adequate to absorb losses inherent in the portfolio. The allowance for loan losses framework has two basic elements: specific allowances for loans individually evaluated for impairment and a general allowance for pools of loans with similar characteristics not individually evaluated. This analysis includes the evaluation of impaired loans as prescribed under the Receivables Topic of the FASB ASC, as well as pooled loans as prescribed under the Contingencies Topic of the FASB ASC. Management’s evaluation of the allowance considers changes in the nature and volume of the portfolio, historic charge-offs, adequacy of collateral, delinquency trends, loan concentrations, economic conditions, changes in policies and procedures, changes in lending management, changes in loan review system and other factors considered necessary to maintain the allowance at an adequate level. Loans are charged against the allowance for loan losses when management believes that the collection of the principal is unlikely and the loss is quantifiable. Subsequent recoveries, if any, are credited to the allowance in the period received. The allowance for loans losses for acquired performing loans is evaluated at each reporting date subsequent to acquisition and the allowance is determined using a methodology similar to that described above. Management believes that the allowance for loan losses is appropriate and adequate. While management uses available information to estimate the inherent losses at each balance sheet date, future changes to the allowance may be necessary based on changes in economic conditions. In addition, various regulatory agencies, as an integral part of their examination process, periodically review the Bank’s allowance for losses on loans. |
Premises and Equipment, Net | Premises and Equipment, Net Land is carried at cost. Other premises and equipment are stated at cost, less accumulated depreciation. Depreciation is computed using the straight-line method over the estimated useful lives of the respective assets. In general, estimated lives for buildings and improvements are up to 40 years, furniture and equipment useful lives range from one to ten years, and the lives of leasehold improvements range from ten to eleven years. Expenditures for major improvements of the Company’s premises and equipment are capitalized and depreciated over their estimated useful lives. Major additions and improvements are charged to the asset accounts while maintenance and repairs that do not improve or extend the useful lives of the assets are charged to expense as incurred. When assets are retired or otherwise disposed of, the cost and related accumulated depreciation are removed from the accounts, and any gain or loss is reflected in the results of operations for the period. The Company determines if a lease is present at the inception of an agreement. Operating leases are capitalized at commencement and are discounted using the Company’s FHLB borrowing rate for a similar term borrowing unless the lease defines an implicit rate within the contract. Leases with original terms of less than 12 months are not capitalized. Right-of-use assets represent the Company’s right to use an underlying asset for the lease term and lease liabilities represent the obligation to make lease payments arising from the lease. Operating lease right-of-use assets and operating lease liabilities are recognized on the lease commencement date based on the present value of lease payments over the lease term. No significant judgments or assumptions were involved in developing the estimated operating lease liabilities as the Company’s operating lease liabilities largely represent future rental expenses associated with operating leases and the borrowing rates are based on publicly available interest rates. The lease term includes options to extend or terminate the lease. These options to extend or terminate are assessed on a lease-by-lease basis and adjustments are made to the right-of-use asset and lease liability if the Company is reasonably certain that an option will be exercised and will be expensed on a straight-line basis. Right-of-use assets and lease liabilities arising from operating leases are included within premises and equipment, net and other liabilities, respectively, on the Consolidated Balance Sheets. See Note 7 – Premises and Equipment for additional information on leases. |
Goodwill and Other Intangible Assets | Goodwill and Other Intangible Assets Goodwill is an asset representing the future economic benefits from other assets acquired that are not individually identified and separately recognized. Goodwill is measured as the excess of the consideration transferred, net of the fair value of identifiable assets acquired and liabilities assumed at the acquisition date. Goodwill is not amortized, but instead is tested for impairment annually or more frequently if events or circumstances exist that indicate a goodwill impairment test should be performed. Other intangible assets, which are initially recorded at fair value, consist of core deposit intangible assets resulting from Atlantic Capital’s acquisition of First Security. Core deposit intangible assets are amortized on a sum-of-all-months basis over their estimated useful lives. The Company evaluates its other intangible assets for impairment whenever events or changes in circumstances indicate the carrying amount of the asset may not be recoverable. |
Other Real Estate Owned | Other Real Estate Owned Assets acquired through, or in lieu of, loan foreclosure are held for sale and are initially recorded at the lower of the loan balance or fair value at the date of foreclosure, less estimated costs to sell. Any difference between the initial cost basis and the carrying value of the loan is charged to the allowance for loan losses at the date of the transfer to other real estate owned. Subsequent to foreclosure, any further declines in value of the assets are recorded as adjustments to the asset’s carrying amount and reported in noninterest expense, along with costs related to holding the properties, in the Consolidated Statements of Operations. |
Servicing Rights | Servicing Rights The Company sells certain loans to third parties. All such transfers are accounted for as sales by the Company. Gains or losses upon sale are recorded in noninterest income. The Company records a separate servicing asset for the loans when the servicing is retained and the expected servicing income is more than adequate compensation for providing the servicing. This asset represents the right or obligation to service the loans and receive a fee in compensation. Servicing assets are initially recorded at their fair value as a component of the sale proceeds. The fair value of the servicing assets is based on an analysis of discounted cash flows that incorporates estimates of (1) market servicing costs, (2) market-based prepayment rates, and (3) market profit margins. The Company has elected to subsequently measure the servicing assets under the amortization method and measured for impairment on a quarterly basis. The rate of prepayment of loans serviced is the most significant estimate involved in the measurement process. Estimates of prepayment rates are based on market participant’s expectations of future prepayment rates, reflecting the Company’s historical rate of loan repayments if consistent with market participant assumptions, industry trends, and other considerations. Actual prepayment rates may differ from those projected by management due to changes in a variety of economic factors, including prevailing interest rates and the availability of alternative financing sources to borrowers. If actual prepayments of the loans being serviced were to occur more quickly than projected, an impairment could exist, and the carrying value of servicing assets may require a write-down through a charge to earnings in the current period. Accordingly, the servicing assets actually realized, could differ from the amounts initially recorded. |
Bank Owned Life Insurance | Bank Owned Life Insurance The Bank has purchased life insurance policies on certain key personnel. Bank owned life insurance is recorded at the amount that can be realized under the insurance contract at the balance sheet date, which is the cash surrender value adjusted for other charges or other amounts due that are probable at settlement. |
Segment Reporting | Segment Reporting Atlantic Capital considers its operations to be a single business segment as defined in ASC 280, Segment Reporting . The Company has determined that its lending divisions meet the aggregation criteria of ASC 280 as the products and services, nature of the production processes, types of customers, methods used to distribute products and services and the regulatory environment are sufficiently similar to aggregate their results. |
Income Taxes | Income Taxes The provision for income taxes is based on income and expense reported for financial statement purposes after adjustments for permanent differences. Deferred tax assets and liabilities are recorded for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Future tax benefits, such as net operating loss carryforwards, are recognized to the extent that realization of such benefits is more likely than not. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which the assets and liabilities are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income tax expense in the period that includes the enactment date. A valuation allowance is provided when it is deemed more likely than not that some portion, or all, of the deferred tax asset will not be realized. In assessing the ability to realize the deferred tax assets, management considers the four possible sources of taxable income including future reversals of existing taxable temporary differences, future taxable income, taxable income in prior carryback years and tax-planning strategies that would be implemented to utilize the loss carryforwards prior to expiration. A tax position is recognized as a benefit only if it is more-likely-than-not that the tax position would be sustained in a tax examination, with a tax examination being presumed to occur. The amount recognized is the largest amount of tax benefit that is greater than 50% likely of being realized on examination. Atlantic Capital files its income tax returns on a consolidated basis. For additional information, see, Note 14 - Income Taxes. |
Stock-Based Compensation | Stock-Based Compensation Atlantic Capital sponsors a stock-based compensation plan, which is described more fully in Note 15 - Employee and Director Benefit Plans. Compensation cost is recognized for stock options and restricted stock awards issued to employees and directors, based on the fair value of these awards at the date of grant. A Black-Scholes model is utilized to estimate the fair value of stock options, while the price of the Company’s common stock at the date of grant is used for restricted stock awards. Compensation expense for performance share awards are based on the fair value of Atlantic Capital’s stock at the grant date adjusted for market conditions, as well as the subsequent achievement of performance conditions. The total cost of the Company’s stock-based awards is recognized as expense on a straight-line basis over the vesting periods of the awards. |
Earnings Per Share | Earnings Per Share Basic earnings per share are computed by dividing net income available to common shareholders by the weighted-average number of common shares outstanding during each period. Diluted earnings per share are based on the weighted-average number of common shares outstanding during each period, plus common share equivalents calculated for stock options outstanding using the treasury stock method. When a net loss is recognized for the period, diluted earnings per share is calculated in the same manner as basic earnings per share. |
Off-Balance Sheet Financial Instruments | Off-Balance Sheet Financial Instruments In the ordinary course of business, the Bank has entered into off-balance sheet financial instruments consisting of commitments to extend credit and letters of credit. Such financial instruments are recorded in the financial statements when they are funded. |
Fair Value | Fair Value Certain assets and liabilities are measured at fair value on a recurring basis. Examples of these include available-for-sale securities and derivative instruments. Fair value is used on a nonrecurring basis when assets are evaluated for impairment; the basis for accounting is lower of cost or market or fair value for disclosure purposes. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. ASC 820, Fair Value Measurements and Disclosures , defines fair value, establishes a framework for measuring fair value, and expands disclosures about fair value measurements. For additional information, see Note 18 - Fair Value Measurements. |
Derivative Financial Instruments | Derivative Financial Instruments The Company follows the guidance under ASC 815, Derivatives and Hedging , and records all derivatives on the Consolidated Balance Sheets at fair value. For derivatives designated as qualifying cash flow hedging relationships, the change in fair value of the effective portion is accounted for in other comprehensive income. For all other derivatives not designated as qualifying hedging relationships, changes in market value are recognized directly into earnings. For additional information, see Note 16 - Derivatives and Hedging. |
Branch Assets Held for Sale and Liabilities to be Assumed | Branch Assets Held for Sale and Liabilities to be Assumed On April 5, 2019, Atlantic Capital completed the sale of all 14 of its bank branches located in Tennessee and northwest Georgia, including its mortgage banking business, to FirstBank (the “Branch Sale”). These branches were acquired from First Security and consisted of loans, premises and deposits that were considered to be held for sale as of December 31, 2018. They were carried at the lower of cost or fair value. |
Going Concern Assessment | Going Concern Assessment I n August 2014, the FASB issued ASU 2014‑15, “Presentation of Financial Statements - Going Concern (Subtopic 205‑40 - Disclosure of Uncertainties about and Entity’s Ability to Continue as a Going Concern .” This guidance requires management to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about an entity’s ability to continue as a going concern within one year after the date that the financial statements are issued or available to be issued. No conditions or events, considered in the aggregate, raise substantial doubt about Atlantic Capital’s ability to continue as a going concern within one year after the date that the 2019 financial statements are issued or available to be issued. |
Divestitures and Discontinued_2
Divestitures and Discontinued Operations (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Divestitures and Discontinued Operations | |
Disposal Groups, Including Discontinued Operations | The following table presents results of the discontinued operations for the years ended December 31, 2019, 2018, and 2017: Components of Net Income from Discontinued Operations For the year ended December 31, (in thousands) 2019 2018 2017 Net interest income $ 3,086 $ 14,140 $ 18,310 Provision for loan losses — (3,097) — Net interest income after provision for loan losses 3,086 17,237 18,310 Service charges 527 1,922 2,342 Mortgage income 288 1,302 1,255 Gain on sale of branches 34,475 — 302 Other (loss) income (1) 123 111 Total noninterest income 35,289 3,347 4,010 Salaries and employee benefits 2,757 11,714 12,245 Occupancy 410 2,016 2,073 Equipment and software 131 779 1,108 Amortization of intangibles 247 1,229 1,653 Communications and data processing 586 1,529 1,524 Divestiture expense 5,095 825 — Other noninterest expense 459 1,849 2,028 Total noninterest expense 9,685 19,941 20,631 Net income before provision for income taxes 28,690 643 1,689 Provision for income taxes 6,993 161 659 Net income from discontinued operations $ 21,697 $ 482 $ 1,030 The following table summarizes the major categories of assets and liabilities classified as held for sale and intangibles related to discontinued operations in the consolidated balance sheet as of December 31, 2018: Assets and Liabilities from Discontinued Operations (in thousands) December 31, 2018 Cash $ 4,234 Loans held for sale - discontinued operations 373,030 Premises held for sale - discontinued operations 7,722 Goodwill - discontinued operations 4,555 Core deposit intangible 1,405 Total assets $ 390,946 Deposits to be assumed - discontinued operations $ 585,429 Securities sold under agreements to repurchase - discontinued operations 6,220 Total liabilities $ 591,649 Net liabilities $ (200,703) |
Balance Sheet Offsetting (Table
Balance Sheet Offsetting (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Balance Sheet Offsetting | |
Offsetting Assets | The following table presents a summary of amounts outstanding under repurchase agreements, reverse repurchase agreements and derivative financial instruments including those entered into in connection with the same counterparty under master netting agreements as of December 31, 2019 and 2018. While these agreements are typically over-collateralized, U.S. GAAP requires disclosures in this table to limit the amount of such collateral to the amount of the related recognized asset or liability for each counterparty. Gross Amounts not Offset in the Gross Balance Sheet Amounts of Gross Amounts Net Cash (in thousands) Recognized Offset on the Asset Financial Collateral December 31, 2019 Assets Balance Sheet Balance Instruments Received Net Amount Derivatives $ 8,856 $ — $ 8,856 $ — $ — $ 8,856 Total $ 8,856 $ — $ 8,856 $ — $ — $ 8,856 Gross Amounts not Offset in the Gross Balance Sheet Amounts of Gross Amounts Net Cash Recognized Offset on the Liability Financial Collateral Liabilities Balance Sheet Balance Instruments Pledged Net Amount Derivatives $ 5,647 $ — $ 5,647 $ (5,647) $ — $ — Total $ 5,647 $ — $ 5,647 $ (5,647) $ — $ — Gross Amounts not Offset in the Gross Balance Sheet Amounts of Gross Amounts Net Cash Recognized Offset on the Asset Financial Collateral December 31, 2018 Assets Balance Sheet Balance Instruments Received Net Amount Reverse repurchase agreements $ 9,457 $ — $ 9,457 $ (9,457) $ — $ — Derivatives 1,961 — 1,961 — — 1,961 Total $ 11,418 $ — $ 11,418 $ (9,457) $ — $ 1,961 Gross Amounts not Offset in the Gross Balance Sheet Amounts of Gross Amounts Net Cash Recognized Offset on the Liability Financial Collateral Liabilities Balance Sheet Balance Instruments Pledged Net Amount Repurchase agreements - discontinued operations $ 6,220 $ — $ 6,220 $ (6,220) $ — $ — Derivatives 4,027 — 4,027 (4,027) — — Total $ 10,247 $ — $ 10,247 $ (10,247) $ — $ — |
Offsetting Liabilities | The following table presents a summary of amounts outstanding under repurchase agreements, reverse repurchase agreements and derivative financial instruments including those entered into in connection with the same counterparty under master netting agreements as of December 31, 2019 and 2018. While these agreements are typically over-collateralized, U.S. GAAP requires disclosures in this table to limit the amount of such collateral to the amount of the related recognized asset or liability for each counterparty. Gross Amounts not Offset in the Gross Balance Sheet Amounts of Gross Amounts Net Cash (in thousands) Recognized Offset on the Asset Financial Collateral December 31, 2019 Assets Balance Sheet Balance Instruments Received Net Amount Derivatives $ 8,856 $ — $ 8,856 $ — $ — $ 8,856 Total $ 8,856 $ — $ 8,856 $ — $ — $ 8,856 Gross Amounts not Offset in the Gross Balance Sheet Amounts of Gross Amounts Net Cash Recognized Offset on the Liability Financial Collateral Liabilities Balance Sheet Balance Instruments Pledged Net Amount Derivatives $ 5,647 $ — $ 5,647 $ (5,647) $ — $ — Total $ 5,647 $ — $ 5,647 $ (5,647) $ — $ — Gross Amounts not Offset in the Gross Balance Sheet Amounts of Gross Amounts Net Cash Recognized Offset on the Asset Financial Collateral December 31, 2018 Assets Balance Sheet Balance Instruments Received Net Amount Reverse repurchase agreements $ 9,457 $ — $ 9,457 $ (9,457) $ — $ — Derivatives 1,961 — 1,961 — — 1,961 Total $ 11,418 $ — $ 11,418 $ (9,457) $ — $ 1,961 Gross Amounts not Offset in the Gross Balance Sheet Amounts of Gross Amounts Net Cash Recognized Offset on the Liability Financial Collateral Liabilities Balance Sheet Balance Instruments Pledged Net Amount Repurchase agreements - discontinued operations $ 6,220 $ — $ 6,220 $ (6,220) $ — $ — Derivatives 4,027 — 4,027 (4,027) — — Total $ 10,247 $ — $ 10,247 $ (10,247) $ — $ — |
Securities (Tables)
Securities (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Securities | |
Schedule of Securities Available-For-Sale and Held-to-Maturity Reconciliation | The following table presents the amortized cost, unrealized gains and losses, and fair value of securities available-for-sale and held-to-maturity at December 31, 2019 and December 31, 2018 . Gross Gross Amortized Unrealized Unrealized Cost Gains Losses Fair Value (in thousands) December 31, 2019 Available-For-Sale U.S. states and political divisions $ 81,865 $ 863 $ (243) $ 82,485 Trust preferred securities 4,808 — (120) 4,688 Corporate debt securities 19,557 363 — 19,920 Residential mortgage-backed securities 173,047 2,797 (476) 175,368 Total available-for-sale 279,277 4,023 (839) 282,461 Held-to-Maturity U.S. states and political divisions 116,972 104 (1,785) 115,291 Total held-to-maturity 116,972 104 (1,785) 115,291 Total securities $ 396,249 $ 4,127 $ (2,624) $ 397,752 December 31, 2018 Available-For-Sale U.S. Government agencies $ 27,259 $ 24 $ (434) $ 26,849 U.S. states and political divisions 91,864 40 (7,070) 84,834 Trust preferred securities 4,781 — (381) 4,400 Corporate debt securities 12,855 — (492) 12,363 Residential mortgage-backed securities 277,524 2,726 (6,210) 274,040 Total securities $ 414,283 $ 2,790 $ (14,587) $ 402,486 |
Investments Classified by Contractual Maturity Date | The following table presents the amortized cost and fair value of available-for-sale and held-to-maturity debt securities by contractual maturity at December 31, 2019. Actual maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. Available-For-Sale Held-to-Maturity Amortized Fair Amortized Fair Cost Value Cost Value (in thousands) (in thousands) Within 1 year $ 6,044 $ 6,136 $ — $ — Over 1 year through 5 years 4,027 4,078 — — 5 years to 10 years 34,804 35,152 — — Over 10 years 61,355 61,727 116,972 115,291 106,230 107,093 116,972 115,291 Residential mortgage-backed securities 173,047 175,368 — — Total $ 279,277 $ 282,461 $ 116,972 $ 115,291 |
Continuous Unrealized Loss Position, Fair Value | The following table summarizes available-for-sale securities and held-to-maturity securities in an unrealized loss position as of December 31, 2019 and December 31, 2018. Less than 12 months 12 months or greater Totals Fair Unrealized Fair Unrealized Fair Unrealized December 31, 2019 Value Losses Value Losses Value Losses (in thousands) Available-for-Sale U.S. states and political divisions $ 20,019 $ (190) $ 4,090 $ (53) $ 24,109 $ (243) Trust preferred securities — — 4,687 (120) 4,687 (120) Corporate debt securities — — — — — — Residential mortgage-backed securities 10,751 (78) 30,292 (398) 41,043 (476) Total available-for-sale 30,770 (268) 39,069 (571) 69,839 (839) Held-to-Maturity U.S. states and political divisions 96,854 (1,785) — — 96,854 (1,785) Total held-to-maturity 96,854 (1,785) — — 96,854 (1,785) Total securities $ 127,624 $ (2,053) $ 39,069 $ (571) $ 166,693 $ (2,624) December 31, 2018 Available-for-Sale U.S. Government agencies $ 1,487 $ (19) $ 21,849 $ (415) $ 23,336 $ (434) U.S. states and political divisions 2,351 (54) 75,234 (7,016) 77,585 (7,070) Trust preferred securities — — 4,400 (381) 4,400 (381) Corporate debt securities 6,009 (60) 6,354 (432) 12,363 (492) Residential mortgage-backed securities 30,938 (152) 196,745 (6,058) 227,683 (6,210) Total securities $ 40,785 $ (285) $ 304,582 $ (14,302) $ 345,367 $ (14,587) |
Schedule of Realized Gain (Loss) on Securities | The following table summarizes securities sales activity for the years ended December 31, 2019 and 2018. Year Ended December 31, 2019 2018 (in thousands) Proceeds from sales $ 116,963 $ 62,087 Gross realized gains $ 1,675 $ — Gross realized losses (768) (1,855) Net gains (losses) on sales of securities $ 907 $ (1,855) |
Loans and Allowance for Loan _2
Loans and Allowance for Loan Losses (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Loans and Allowance for Loan Losses | |
Schedule of Accounts, Notes, Loans and Financing Receivable | The composition of the loan portfolio as of December 31, 2019 and December 31, 2018, is summarized below. December 31, 2019 December 31, 2018 (in thousands) Loans held for sale Loans held for sale - discontinued operations $ — $ 373,030 Loans held for sale - continuing operations 370 5,889 Total loans held for sale $ 370 $ 378,919 Loans held for investment Commercial loans: Commercial and industrial $ 705,115 $ 645,374 Commercial real estate 916,328 794,828 Construction and land 127,540 156,232 Mortgage warehouse participations 13,941 27,967 Total commercial loans 1,762,924 1,624,401 Residential: Residential mortgages 31,315 32,800 Home equity 25,002 22,822 Total residential loans 56,317 55,622 Consumer 37,765 25,851 Other 19,552 24,712 Total loans 1,876,558 1,730,586 Less net deferred fees and other unearned income (3,034) (2,513) Less allowance for loan losses (18,535) (17,851) Loans held for investment, net $ 1,854,989 $ 1,710,222 |
Schedule of Accretable Yield | The following table presents changes in the value of the accretable yield for acquired loans accounted for under ASC 310‑30. Year Ended December 31, 2018 Balance at beginning of period $ 2,316 Accretion (970) Reclassification of nonaccretable discount due to change in expected cash flows 444 Other changes, net (1,790) Balance at end of period $ — |
Schedule of Allowance for Credit Losses on Financing Receivables | The following table presents the balance and activity in the allowance for credit losses by portfolio segment for the years ended December 31, 2019 and 2018. 2019 2018 Year Ended December 31, Commercial Residential Consumer Total Commercial Residential Consumer Total (in thousands) Allowance for loan losses: Beginning balance $ 17,322 $ 292 $ 237 $ 17,851 $ 18,267 $ 802 $ 275 $ 19,344 Provision for loan losses 2,910 (153) (45) 2,712 1,613 374 (41) 1,946 Provision for loan losses - discontinued operations — — — — (2,429) (653) (15) (3,097) Loans charged-off (2,069) (9) (39) (2,117) (176) (235) (16) (427) Recoveries 40 15 34 89 47 4 34 85 Total ending allowance balance $ 18,203 $ 145 $ 187 $ 18,535 $ 17,322 $ 292 $ 237 $ 17,851 |
Schedule of Allowance for Loan Losses and Recorded Investment by Portfolio Segment | The balance in the allowance for loan losses and the recorded investment in loans by portfolio segment and based on impairment method is presented in the following table as of December 31, 2019 and December 31, 2018. December 31, 2019 Commercial Residential Consumer Total (in thousands) Allowance for loan losses: Ending allowance balance attributable to loans Individually evaluated for impairment $ 1,010 $ — $ — $ 1,010 Collectively evaluated for impairment 17,193 145 187 17,525 Total ending allowance balance $ 18,203 $ 145 $ 187 $ 18,535 Loans: Loans individually evaluated for impairment $ 22,091 $ 726 $ — $ 22,817 Loans collectively evaluated for impairment 1,740,833 55,591 57,317 1,853,741 Total ending loans held for investment balance $ 1,762,924 $ 56,317 $ 57,317 $ 1,876,558 December 31, 2018 Commercial Residential Consumer Total (in thousands) Allowance for loan losses: Ending allowance balance attributable to loans Individually evaluated for impairment $ 317 $ — $ — $ 317 Collectively evaluated for impairment 17,005 292 237 17,534 Total ending allowance balance $ 17,322 $ 292 $ 237 $ 17,851 Loans: Loans individually evaluated for impairment $ 10,273 $ 161 $ — $ 10,434 Loans collectively evaluated for impairment 1,614,128 55,461 50,563 1,720,152 Total ending loans balance $ 1,624,401 $ 55,622 $ 50,563 $ 1,730,586 |
Impaired Financing Receivables | The following table presents information on Atlantic Capital’s impaired loans for the years ended December 31, 2019 and 2018: For the Year Ended December 31, 2019 2018 Average Balance Interest Income Average Balance Interest Income Unpaid of Recorded Recognized Unpaid of Recorded Recognized Principal Recorded Related Investment While During Principal Recorded Related Investment While During Balance Investment Allowance Impaired Impairment Balance Investment Allowance Impaired Impairment (in thousands) Impaired loans with no related allowance recorded: Commercial and industrial $ 6,920 6,082 $ — $ 6,270 $ 161 $ 4,346 $ 4,346 $ — $ 4,529 $ 230 Commercial real estate 5,005 4,794 — 4,819 226 1,828 1,665 — 1,691 — Construction and land — — — — — — — — — — Residential mortgages 72 26 — 26 — 207 161 — 173 — Home equity 700 700 — 700 — — — — — — Mortgage warehouse — — — — — — — — — — Consumer — — — — — — — — — — Total $ 12,697 $ 11,602 $ — $ 11,815 $ 387 $ 6,381 $ 6,172 $ — $ 6,393 $ 230 Impaired loans with an allowance recorded: Commercial and industrial $ 3,350 3,350 $ 886 $ 3,370 $ 27 $ 395 $ 395 $ 124 $ 395 $ — Commercial real estate 7,865 7,865 124 7,865 254 3,867 3,867 193 4,242 69 Construction and land — — — — — — — — — — Residential mortgages — — — — — — — — — — Home equity — — — — — — — — — — Mortgage warehouse — — — — — — — — — — Consumer — — — — — — — — — — Total $ 11,215 $ 11,215 $ 1,010 $ 11,235 $ 281 $ 4,262 $ 4,262 $ 317 $ 4,637 $ 69 Total impaired loans $ 23,912 $ 22,817 $ 1,010 $ 23,050 $ 668 $ 10,643 $ 10,434 $ 317 $ 11,030 $ 299 |
Troubled Debt Restructurings on Financing Receivables | Loans, by portfolio class, modified as TDRs during the years ended December 31, 2019 and 2018, are as follows. Pre-Modification Post-Modification Outstanding Outstanding Number of Loans Recorded Investment Recorded Investment (in thousands) Year Ended December 31, 2019 Commercial and industrial 9 $ 4,699 $ 4,699 Commercial real estate 4 8,471 8,471 Total 13 $ 13,170 $ 13,170 Year Ended December 31, 2018 Commercial real estate 1 4,617 4,617 Total 1 $ 4,617 $ 4,617 |
Schedule of Related Party Transactions | The following is a summary of activity with respect to related-party loans in 2019 and 2018. 2019 2018 (in thousands) Balance at January 1, $ — $ 1,885 Additions 6 4,362 Repayments (6) (6,247) Balance at December 31, $ — $ — |
Schedule of Financing Receivable Credit Quality Indicators | As of December 31, 2019 and December 31, 2018, and based on the most recent analysis performed, the risk category of loans by class of loans is as follows. (Total loans includes loans held for sale - discontinued operations as of December 31, 2018.) Special Substandard Substandard Doubtful Pass Mention Accruing Nonaccruing Nonaccruing Total (in thousands) December 31, 2019 Commercial and industrial $ 648,895 $ 40,179 $ 10,051 $ 5,990 $ — $ 705,115 Commercial real estate 891,078 5,483 19,504 263 — 916,328 Construction and land 127,540 — — — — 127,540 Residential mortgages 30,941 — 119 151 104 31,315 Home equity 24,302 — — 700 — 25,002 Mortgage warehouse 13,941 — — — — 13,941 Consumer/Other 56,336 500 481 — — 57,317 Total loans $ 1,793,033 $ 46,162 $ 30,155 $ 7,104 $ 104 $ 1,876,558 Special Substandard Substandard Doubtful Pass Mention Accruing Nonaccruing Nonaccruing Total (in thousands) December 31, 2018 Commercial and industrial $ 671,992 $ 6,802 $ 22,777 $ 832 $ — $ 702,403 Commercial real estate 946,612 4,754 14,914 126 1,647 968,053 Construction and land 169,687 40 25 — — 169,752 Residential mortgages 118,265 1,119 1,441 1,138 281 122,244 Home equity 54,707 92 294 499 — 55,592 Mortgage warehouse 22,192 5,775 — — — 27,967 Consumer/Other 57,268 66 97 174 — 57,605 Total loans $ 2,040,723 $ 18,648 $ 39,548 $ 2,769 $ 1,928 $ 2,103,616 |
Schedule of Past Due Financing Receivables | Atlantic Capital monitors loans by past due status. The following table presents the aging of the recorded investment in past due loans as of December 31, 2019 and December 31, 2018 by class of loans. As of December 31, 2019 Accruing 30‑89 Accruing Accruing Days 90+ Days Current Past Due Past Due Nonaccruing Total (in thousands) Loans by Classification Commercial and industrial $ 695,026 $ 4,099 $ — $ 5,990 $ 705,115 Commercial real estate 914,787 1,194 85 262 916,328 Construction and land 127,540 — — — 127,540 Residential mortgages 30,352 707 — 256 31,315 Home equity 24,302 — — 700 25,002 Mortgage warehouse 13,941 — — — 13,941 Consumer 57,181 136 — — 57,317 Total Loans $ 1,863,129 $ 6,136 $ 85 $ 7,208 $ 1,876,558 As of December 31, 2018 Accruing 30‑89 Accruing Accruing Days 90+ Days Current Past Due Past Due Nonaccruing Total (in thousands) Loans by Classification Commercial and industrial $ 692,308 $ 8,785 $ 478 $ 832 $ 702,403 Commercial real estate 963,579 2,701 — 1,773 968,053 Construction and land 169,752 — — — 169,752 Residential mortgages 119,932 893 — 1,419 122,244 Home equity 54,714 379 — 499 55,592 Mortgage warehouse 27,967 — — — 27,967 Consumer 57,371 59 1 174 57,605 Total Loans $ 2,085,623 $ 12,817 $ 479 $ 4,697 $ 2,103,616 |
Premises and Equipment (Tables)
Premises and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Premises and Equipment | |
Schedule of Premises and Equipment | As of December 31, 2019 2018 (in thousands) Land and improvements $ — $ 1,902 Buildings and improvements — 7,402 Leasehold improvements 9,040 7,745 Equipment, furniture and software 11,636 13,339 Right of use asset - leases 11,940 — Projects in process 147 — Premises and equipment-gross 32,763 30,388 Accumulated depreciation (10,227) (12,887) Premises and equipment-net $ 22,536 $ 17,501 |
Lease Cost and Other Information Related to Leases | Year Ended December 31, 2019 Operating lease cost $ 2,274 Short-term lease cost 44 Sublease income (252) Net lease cost $ 2,066 Year Ended December 31, 2019 Operating cash paid for amounts included in the measurement of lease liabilities $ 1,944 Right-of-use assets obtained in exchange for new finance lease liabilities 17,807 December 31, 2019 Weighted-average remaining lease term - operating leases 9.0 Weighted-average discount rate - operating leases 3.1 % |
Schedule of Maturity of Lease Liabilities | December 31, 2019 (in thousands) Year Ended: December 31, 2020 $ 2,062 December 31, 2021 2,176 December 31, 2022 2,418 December 31, 2023 2,025 December 31, 2024 1,937 Thereafter 9,437 Total future minimum lease payments 20,055 Less: Interest (3,190) Present value of net future minimum lease payments $ 16,865 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Goodwill and Intangible Assets | |
Schedule of Intangible Assets and Goodwill | The carrying amount of goodwill and other intangible assets is summarized below: December 31, December 31, 2019 2018 (in thousands) Core deposit intangible $ 9,544 $ 9,544 Less: accumulated amortization (6,100) (5,853) Less: impairment to-date related to divested branches (3,444) (2,286) Core deposit intangible, net - discontinued operations — 1,405 Servicing assets, net 3,027 2,983 Total intangibles subject to amortization, net 3,027 4,388 Goodwill - discontinued operations — 4,555 Goodwill - continuing operations 19,925 17,135 Total goodwill and other intangible assets, net $ 22,952 $ 26,078 The following table presents activity for goodwill and other intangible assets: Goodwill Core Deposit Intangible Total (in thousands) Balance at December 31, 2017 $ 21,759 $ 2,634 $ 24,393 Amortization — (1,229) (1,229) Impairment, due to trust business sale (69) — (69) Balance at December 31, 2018 21,690 1,405 23,095 Amortization — (247) (247) Impairment, due to Branch Sale (1,765) (1,158) (2,923) Balance at December 31, 2019 $ 19,925 $ — $ 19,925 |
Servicing Rights (Tables)
Servicing Rights (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Servicing Rights | |
Changes in the Balance of Servicing Assets | Changes in the balance of SBA servicing assets for the years ended December 31, 2019 and 2018 are presented in the following table . Year ended December 31, SBA Loan Servicing Assets 2019 2018 (in thousands) Beginning carrying value, net $ 2,539 $ 2,635 Additions 1,226 823 Amortization (1,034) (919) Ending carrying value $ 2,731 $ 2,539 Changes in the balance of TriNet servicing assets for the years ended December 31, 2019 and 2018 are presented in the following table . Year Ended December 31, TriNet Servicing Assets 2019 2018 (in thousands) Beginning carrying value, net $ 444 $ 605 Additions — — Amortization (148) (161) Ending carrying value $ 296 $ 444 |
Schedule of Sensitivity to Immediate Changes in Key Economic Assumptions | At December 31, 2019 and 2018, the sensitivity of the fair value of the SBA loan servicing rights to immediate changes in key economic assumptions are presented in the table below . Sensitivity of the SBA Servicing Assets December 31, 2019 December 31, 2018 (dollars in thousands) Fair value of retained servicing assets $ 2,842 $ 2,630 Weighted average life 3.77 years 4.83 years Prepayment speed: 14.87 % 11.92 % Decline in fair value due to a 10% adverse change $ (150) $ (131) Decline in fair value due to a 20% adverse change $ (254) $ (223) Weighted average discount rate 13.66 % 14.42 % Decline in fair value due to a 100 bps adverse change $ (98) $ (101) Decline in fair value due to a 200 bps adverse change $ (156) $ (165) At December 31, 2019 and 2018, the sensitivity of the fair value of the TriNet servicing rights to immediate changes in key economic assumptions are presented in the table below . Sensitivity of the TriNet Servicing Assets December 31, 2019 December 31, 2018 (dollars in thousands) Fair value of retained servicing assets $ $ Weighted average life 5.58 years 6.48 years Prepayment speed: 5.00 % 5.00 % Decline in fair value due to a 10% adverse change $ (5) $ (7) Decline in fair value due to a 20% adverse change $ (10) $ (14) Weighted average discount rate 8.00 % 8.00 % Decline in fair value due to a 100 bps adverse change $ (9) $ (13) Decline in fair value due to a 200 bps adverse change $ (18) $ (25) |
Deposits (Tables)
Deposits (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Regulatory Matters | |
Schedule of Deposit Liabilities | December 31, 2019 December 31, 2018 (in thousands) Non-interest bearing demand deposits $ 824,646 $ 602,252 Interest-bearing demand deposits 373,727 252,490 Savings and money market deposits 1,174,437 987,908 Time deposits less than $250,000 37,680 3,630 Time deposits $250,000 or greater 6,709 6,993 Brokered deposits 81,847 99,241 Total deposits - continuing operations $ 2,499,046 $ 1,952,514 Deposits to be assumed - discontinued operations $ — $ 585,429 |
Schedule of Maturities of Time Deposits | The scheduled maturities of time and brokered deposits as of December 31, 2019 are as follows: Time Brokered (in thousands) 2020 $ 38,446 $ 79,276 2021 5,005 2,571 2022 866 — 2023 — — 2024 44 — Thereafter 28 — Total $ 44,389 $ 81,847 |
Other Borrowings and Long Ter_2
Other Borrowings and Long Term Debt (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Other Borrowings and Long Term Debt | |
Schedule of Long-term Debt Instruments and Borrowings | Subordinated debt is summarized as follows: December 31, 2019 December 31, 2018 (in thousands) Floating rate 10 year capital securities, with interest paid semi-annually at an annual fixed rate of 6.25% until September 30, 2020 $ 50,000 $ 50,000 Principal amount of subordinated debt $ 50,000 $ 50,000 Less debt issuance costs 127 296 Subordinated debt, net $ 49,873 $ 49,704 |
Other Comprehensive (Loss) In_2
Other Comprehensive (Loss) Income (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Other Comprehensive (Loss) Income | |
Schedule of Accumulated Other Comprehensive Income (Loss) | The following tables present a summary of the changes in accumulated other comprehensive (loss) income balances for the applicable periods. For the Year Ended December 31, 2019 December 31, 2018 December 31, 2017 Income Income Income Tax Tax Tax Pre-Tax (Expense) After-Tax Pre-Tax (Expense) After-Tax Pre-Tax (Expense) After-Tax Amount Benefit Amount Amount Benefit Amount Amount Benefit Amount (in thousands) Accumulated other comprehensive (loss) income beginning of period $ (13,743) 3,438 $ (10,305) $ (6,274) $ 2,415 $ (3,859) $ (9,144) $ 3,519 $ (5,625) Reclassification of tax effects from AOCI — — — — (844) (844) — — — Unrealized net (losses) gains on investment securities available-for-sale 15,888 (3,974) 11,914 (8,070) 2,018 (6,052) 3,876 (1,491) 2,385 Reclassification adjustment for net realized (gains)/losses on investment securities available-for-sale (907) 227 (680) 1,855 (464) 1,391 181 (70) 111 Unrealized net (losses) gains on derivatives 4,843 (1,211) 3,632 (1,254) 313 (941) (1,187) 457 (730) Accumulated other comprehensive (loss) income end of period $ 6,081 $ (1,520) $ 4,561 $ (13,743) $ 3,438 $ (10,305) $ (6,274) $ 2,415 $ (3,859) |
Earnings Per Common Share (Tabl
Earnings Per Common Share (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Earnings Per Common Share | |
Schedule of Calculation of Numerator and Denominator in Earnings Per Share | The following table represents the earnings per share calculations from continuing operations and discontinued operations for the years ended December 31, 2019, 2018, and 2017. Year Ended December 31, 2019 2018 2017 (in thousands, except share and per share amounts) Net income (loss) from continuing operations $ 28,158 $ 28,050 $ (4,756) Net income from discontinued operations 21,697 482 1,030 Net income (loss) available to common shareholders $ 49,855 $ 28,532 $ (3,726) Weighted average shares outstanding Basic (1) 23,315,562 25,947,038 25,592,731 Effect of dilutive securities: Stock options and performance share awards 162,439 164,717 229,354 Diluted 23,478,001 26,111,755 25,822,085 Net income (loss) per common share - basic Net income (loss) per common share - continuing operations $ 1.21 $ 1.08 $ (0.19) Net income per common share - discontinued operations 0.93 0.02 0.04 Net income (loss) per common share - basic $ 2.14 $ 1.10 $ (0.15) Net income (loss) per common share - diluted Net income (loss) per common share - continuing operations $ 1.20 $ 1.07 $ (0.19) Net income per common share - discontinued operations 0.92 0.02 0.04 Net income (loss) per common share - diluted $ 2.12 $ 1.09 $ (0.15) Unvested restricted shares are participating securities and included in basic share calculations. |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Schedule of components of income tax expense (benefit) | The components of income tax expense from continuing operations included in the Consolidated Statements of Operations for the years ended were as follows: For the year ended December 31, (in thousands) 2019 2018 2017 Current income tax expense (benefit): Federal $ (2,587) $ 3,710 $ (561) State (183) 371 35 Total (2,770) 4,081 (526) Deferred income tax expense (benefit): Federal 9,646 (1,798) 24,354 State 735 4,024 (113) Total 10,381 2,226 24,241 Total income tax from continuing operations $ 7,611 $ 6,307 $ 23,715 |
Schedule of effective income tax rate reconciliation | The income tax expense differs from the statutory rate of 21% in 2019 and 2018 and 35% in 2017, as indicated in the following analysis: For the year ended December 31, (in thousands) 2019 2018 2017 Tax expense (benefit) based on federal statutory rate $ 7,518 $ 7,215 $ 6,636 State taxes, net of federal benefit 572 899 102 Income tax credits (10) (103) (208) Tax-exempt earnings (822) (717) (1,221) Excess benefit 4 (142) (298) Nondeductible expenses 135 116 361 Change in uncertain tax positions reserve 137 56 (109) Change in valuation allowance (111) (996) (649) Revaluation of deferred tax asset excluding valuation allowance due to tax reform — — 18,983 Other 188 (21) 118 Total income tax from continuing operations $ 7,611 $ 6,307 $ 23,715 |
Schedule of deferred tax assets and liabilities | The net deferred tax asset is included as a component of other assets at December 31, 2019 and 2018, and is comprised of the following: (in thousands) December 31, 2019 December 31, 2018 Net operating loss carryforward $ 15,743 $ 25,992 Federal tax credits 5,342 5,342 State credits — 27 Allowance for loan losses 4,545 4,374 Stock-based compensation 729 699 Other real estate owned 206 371 Transaction costs 152 787 Deferred rent — 815 Lease liability 4,158 — Nonaccrual loan interest 509 530 Net unrealized losses on investment securities available‑for‑sale — 2,950 Net unrealized losses on cash flow hedges — 486 Long term incentive plan 204 471 Other 2,197 2,229 Total gross deferred tax assets 33,785 45,073 Less: valuation allowance (6,698) (7,446) Net deferred tax asset 27,087 37,627 Depreciation 626 1,215 Deferred loan costs 429 365 Other 301 192 Right of use asset - leases 2,944 — Net unrealized gains on investment securities available‑for‑sale 796 — Net unrealized gains on cash flow hedges 725 — Total gross deferred tax liabilities 5,821 1,772 Net deferred tax assets $ 21,266 $ 35,855 |
Schedule of reconciliation of unrecognized tax benefits | A reconciliation of the beginning and ending unrecognized tax benefit related to uncertain tax positions is as follows: (in thousands) 2019 2018 Balance at beginning of year $ 278 $ 216 Additions based on tax positions related to the current year 174 62 Settlement of prior year positions — — Balance at end of year $ 452 $ 278 |
Employee and Director Benefit_2
Employee and Director Benefit Plans (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Employee and Director Benefit Plans | |
Schedule of Assumptions Used | The table below summarizes the assumptions used to calculate the fair value of options granted/modified during 2019, 2018, and 2017: For the year ended December 31, 2019 2018 2017 Risk‑free interest rate 2.27 % 1.66 % 1.00-2.42 % Expected term in years 1.73-1.82 0.25 .25-8 Expected stock price volatility 26.8 % 24.2 % 23.2-25.3 % Dividend yield — % — % — % |
Schedule of Share-based Compensation, Stock Options and Warrants Activity | The following table represents stock option activity for the years ended December 31, 2019, 2018, and 2017: Weighted Average Weighted Remaining Aggregate Average Contractual Term Intrinsic Value Shares Exercise Price (in years) (in thousands) Outstanding, December 31, 2018 442,454 $ 12.02 Granted/modified (1) 12,500 10.00 Exercised (90,330) 12.76 Forfeited (1) (38,500) 13.17 Expired (7,144) 17.79 Outstanding, December 31, 2019 318,980 $ 11.47 2.41 $ 2,203 Exercisable, December 31, 2019 308,980 $ 11.36 2.30 $ 2,170 Weighted average fair value of options granted/modified $ 8.07 Outstanding, December 31, 2017 757,711 $ 12.66 Granted/modified (2) 15,000 14.64 Exercised (310,016) 13.21 Forfeited (2) (19,935) 14.08 Expired (306) 105.97 Outstanding, December 31, 2018 442,454 $ 12.02 3.98 $ 1,990 Exercisable, December 31, 2018 396,454 $ 11.67 3.63 $ 1,919 Weighted average fair value of options granted/modified $ 2.79 Outstanding, December 31, 2016 1,485,704 $ 11.69 Granted/modified (3) 229,100 13.53 Exercised (724,912) 10.53 Forfeited (3) (231,546) 13.50 Expired (635) 126.22 Outstanding, December 31, 2017 757,711 $ 12.66 5.56 $ 3,883 Exercisable, December 31, 2017 662,016 $ 12.39 5.24 $ 3,585 Weighted average fair value of options granted/modified $ 7.15 (1) During the year ended December 31, 2019, the Company modified options for 12,500 shares. The modifications are included as shares granted/modified and as shares forfeited in this table. (2) During the year ended December 31, 2018, the Company modified options for 15,000 shares. The modifications are included as shares granted/modified and as shares forfeited in this table. (3) During the year ended December 31, 2017, the Company modified options for 229,100 shares. The modifications are included as shares granted/modified and as shares forfeited in this table |
Schedule of Share-based Compensation, Restricted Stock Award Activity | The following table represents restricted stock and performance share award activity for the year ended December 31, 2019, 2018, and 2017: Weighted Average Grant- Shares Date Fair Value Outstanding, December 31, 2018 272,695 $ 18.09 Granted/modified (1) 158,593 19.19 Vested (70,748) 16.51 Forfeited (1) (67,663) 18.34 Outstanding, December 31, 2019 292,877 $ 19.00 Outstanding, December 31, 2017 239,468 $ 15.69 Granted/modified (1) 139,507 19.79 Vested (73,686) 14.51 Forfeited (1) (32,594) 15.91 Outstanding, December 31, 2018 272,695 $ 18.09 Outstanding, December 31, 2016 259,165 $ 13.70 Granted/modified (1) 132,487 17.83 Vested (91,671) 13.54 Forfeited (1) (60,513) 15.03 Outstanding, December 31, 2017 239,468 $ 15.69 (1) Durin g the years ended December 31, 2019, 2018, and 2017, the Company modified 4,719, 6,869 and 24,628 restricted stock awards, respectively. The modifications are included as shares granted/modified and as shares forfeited in the table above. |
Derivatives and Hedging (Tables
Derivatives and Hedging (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Derivatives and Hedging | |
Schedule of Derivative Instruments | The following table reflects the estimated fair value positions of derivative contracts and credit risk participation agreements as of December 31, 2019 and 2018: Derivatives designated as hedging instruments under ASC 815 December 31, 2019 December 31, 2018 (in thousands) Balance Sheet Notional Notional Interest Rate Products Location Amount Fair Value Amount Fair Value Cash flow hedge of LIBOR based loans Other assets $ 125,000 $ 3,578 $ — $ — Cash flow hedge of LIBOR based loans Other liabilities $ 50,000 $ 8 $ 100,000 $ 2,029 Derivatives not designated as hedging instruments under ASC 815 December 31, 2019 December 31, 2018 (in thousands) Balance Sheet Notional Notional Interest Rate Products Location Amount Fair Value Amount Fair Value Customer swap positions Other assets $ 44,763 $ 1,025 $ 54,760 $ 756 Zero premium collar Other assets 74,562 4,253 83,385 1,205 $ 119,325 $ 5,278 $ 138,145 $ 1,961 Dealer offsets to customer swap positions Other liabilities $ 44,763 $ 1,090 $ 54,760 $ 770 Dealer offset to zero premium collar Other liabilities 74,562 4,545 83,385 1,226 Credit risk participation Other liabilities 7,657 4 9,532 2 $ 126,982 $ 5,639 $ 147,677 $ 1,998 The following table presents the effect of the Company’s derivative financial instruments that are not designated as hedging instruments on the Consolidated Statements of Operations for the years ended December 31, 2019 and 2018: Derivatives not designated as hedging instruments under ASC 815 Location of Gain or Amount of Gain or (Loss) (Loss) Recognized in Recognized in Income on Derivative (in thousands) Income on Derivative Year Ended December 31, 2019 2018 Interest rate products Other income / (expense) $ (321) $ 79 Other contracts Other income / (expense) (1) 2 Total $ (322) $ 81 Fee income Other income / (expense) $ — $ 227 The following table reflects the impact to the Consolidated Statements of Operations related to derivative contracts for the years ended December 31, 2019 and 2018: Derivatives in Cash Flow Hedging Relationships Amount of Gain or (Loss) Recognized in OCI on Derivatives Gain or (Loss) Reclassified from Accumulated OCI in Income (Effective Portion) (Effective Portion) (in thousands) 2019 2018 Location 2019 2018 Interest rate swaps $ 4,487 $ (1,229) Interest income $ (356) $ 26 |
Regulatory Matters (Tables)
Regulatory Matters (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Regulatory Matters | |
Schedule of Compliance with Regulatory Capital Requirements under Banking Regulations | The Company’s and the Bank’s actual capital amounts and ratios are presented in the table below: As of December 31, 2019 To be Well Capitalized Under For Capital Adequacy Prompt Corrective Action Actual Purposes Provisions (dollars in thousands) Amount Ratio Amount Ratio Amount Ratio Common Equity Tier 1 capital (to risk weighted assets): Consolidated $ 285,456 12.0 % $ 106,740 4.5 % N/A N/A Bank 327,426 13.8 % 106,698 4.5 % 154,119 6.5 % Tier 1 capital (to risk weighted assets): Consolidated $ 285,456 12.0 % $ 189,760 8.0 % N/A N/A Bank 327,426 13.8 % 189,685 8.0 % 237,107 10.0 % Total capital (to risk weighted assets): Consolidated $ 354,757 15.0 % $ 142,320 6.0 % N/A N/A Bank 346,854 14.6 % 142,264 6.0 % 189,685 8.0 % Tier 1 capital (to average assets): Consolidated $ 285,456 11.0 % $ 103,596 4.0 % N/A N/A Bank 327,426 12.7 % 103,425 4.0 % 129,281 5.0 % As of December 31, 2018 To be Well Capitalized For Capital Adequacy Under Prompt Corrective Actual Purposes Action Provisions Amount Ratio Amount Ratio Amount Ratio Common Equity Tier 1 capital (to risk weighted assets): Consolidated $ 285,250 11.5 % $ 112,033 4.5 % N/A N/A Bank 304,907 12.3 % 112,022 4.5 % 161,809 6.5 % Tier 1 capital (to risk weighted assets): Consolidated $ 285,250 11.5 % $ 149,378 6.0 % N/A N/A Bank 304,907 12.3 % 149,362 6.0 % 199,150 8.0 % Total capital (to risk weighted assets): Consolidated $ 353,458 14.2 % $ 199,170 8.0 % N/A N/A Bank 323,411 13.0 % 199,150 8.0 % 248,937 10.0 % Tier 1 capital (to average assets): Consolidated $ 285,250 10.0 % $ 113,705 4.0 % N/A N/A Bank 304,907 10.6 % 114,574 4.0 % 143,218 5.0 % |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Fair Value Measurements | |
Schedule of Fair Value, Assets and Liabilities, Measured on Recurring Basis | Assets and Liabilities Measured at Fair Value on a Recurring Basis The following tables present assets and liabilities that were measured at fair value on a recurring basis by level within the fair value hierarchy as reported in the Consolidated Balance Sheets at December 31, 2019 and 2018. Fair Value Measurements at December 31, 2019 Using: Quoted Prices in Active Significant Markets for Other Significant Identical Observable Unobservable Securities Inputs Inputs (Level 1) (Level 2) (Level 3) Total (in thousands) Securities available-for-sale— U.S. states and political subdivisions $ — $ 82,485 $ — $ 82,485 Trust preferred securities — 4,688 — 4,688 Corporate debt securities — 19,920 — 19,920 Mortgage-backed securities — 175,368 — 175,368 Total securities available-for-sale $ — $ 282,461 $ — $ 282,461 Interest rate derivative assets $ — $ 8,856 $ — $ 8,856 Interest rate derivative liabilities $ — $ 5,647 $ — $ 5,647 Fair Value Measurements at December 31, 2018 Using: Quoted Prices in Active Significant Markets for Other Significant Identical Observable Unobservable Securities Inputs Inputs (Level 1) (Level 2) (Level 3) Totals (in thousands) Securities available-for-sale— U.S. government agencies $ — $ 26,849 $ — $ 26,849 U.S. states and political subdivisions — 84,834 — 84,834 Trust preferred securities — 4,400 — 4,400 Corporate debt securities — 12,363 — 12,363 Mortgage-backed securities — 274,040 — 274,040 Total securities available-for-sale $ — $ 402,486 $ — $ 402,486 Interest rate derivative assets $ — $ 1,961 $ — $ 1,961 Interest rate derivative liabilities $ — $ 4,027 $ — $ 4,027 |
Fair Value Measurements, Nonrecurring | Assets and Liabilities Measured at Fair Value on a Non-Recurring Basis The following table presents the assets that were measured at fair value on a nonrecurring basis by level within the fair value hierarchy as reported in the Consolidated Balance Sheets at December 31, 2019 and December 31, 2018 . Level 1 Level 2 Level 3 Fair Value Fair Value Fair Value December 31, 2019 Measurement Measurement Measurement Total (in thousands) Impaired Loans $ — $ — $ 4,288 $ 4,288 Level 1 Level 2 Level 3 Fair Value Fair Value Fair Value December 31, 2018 Measurement Measurement Measurement Total (in thousands) Impaired Loans $ — $ — $ 1,836 $ 1,836 |
Fair Value Measurements, Recurring and Nonrecurring | The following tables present the estimated fair values of Atlantic Capital’s financial instruments at December 31, 2019 and December 31, 2018. Fair Value Measurements at December 31, 2019 Using: Quoted Prices in Active Significant markets for Other Significant Identical Observable Unobservable Carrying Securities Inputs Inputs Amount (Level 1) (Level 2) (Level 3) (in thousands) Financial assets: Cash and due from banks $ 45,249 $ 45,249 $ — $ — Interest-bearing deposits in banks 421,079 421,079 — — Total securities available-for-sale 282,461 — 282,461 — Total securities held-to-maturity 116,972 — 115,291 — FHLB stock 2,680 — — 2,680 Federal Reserve Bank stock 9,998 — — 9,998 Loans held for investment, net 1,873,524 — — 1,890,258 Loans held for sale 370 — 370 — Derivative assets 8,856 — 8,856 — Financial liabilities: Deposits $ 2,499,046 $ — $ 2,421,957 $ — Subordinated debt 49,873 — 50,081 — Derivative financial instruments 5,647 — 5,647 — Fair Value Measurements at December 31, 2018 Using: Quoted Prices in Active Significant markets for Other Significant Identical Observable Unobservable Carrying Securities Inputs Inputs Amount (Level 1) (Level 2) (Level 3) (in thousands) Financial assets: Cash and due from banks $ 42,895 $ 42,895 $ — $ — Interest-bearing deposits in other banks 216,040 216,040 — — Other short-term investments 9,457 9,457 — — Total securities available-for-sale 402,486 — 402,486 — FHLB stock 2,622 — — 2,622 Federal Reserve Bank stock 9,906 — — 9,906 Loans held for investment, net 1,710,222 — — 1,740,438 Loans held for sale 5,889 — 5,889 — Loans held for sale - discontinued operations 373,030 — 373,030 — Derivative assets 1,961 — 1,961 — Financial liabilities: Deposits $ 1,952,514 $ — $ 1,830,673 $ — Deposits to be assumed - discontinued operations 585,429 — 585,429 — Securities sold under agreements to repurchase - discontinued operations 6,220 6,220 — — Subordinated debt 49,704 — 48,960 — Derivative financial instruments 4,027 — 4,027 — |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Commitments and Contingencies | |
Schedule of Exposure to Credit Risk By Commitment | Atlantic Capital’s maximum exposure to credit risk for unfunded loan commitments and standby letters of credit as well as a summary of minimum lease payments at December 31, 2019 and December 31, 2018 were as follows: December 31, 2019 December 31, 2018 (in thousands) Financial Instruments whose contract amount represents credit risk: Commitments to extend credit $ 735,905 $ 715,591 Standby letters of credit 8,053 15,650 $ 743,958 $ 731,241 Minimum lease payments $ 20,055 $ 22,014 |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Revenue Recognition | |
Disaggregation of Revenue | The following table presents service charges by type of service provided for the years ended December 31, 2019, 2018, and 2017: Year Ended December 31, 2019 2018 2017 (in thousands) Deposit account analysis fees and charges $ 2,630 $ 2,166 $ 1,785 ATM fees 58 223 234 NSF fees 57 97 74 Wire fees 483 426 356 Foreign exchange fees 352 288 258 Other 7 15 27 Total service charges - continuing operations 3,587 3,215 2,734 Service charges - discontinued operations 527 1,922 2,342 Total service charges $ 4,114 $ 5,137 $ 5,076 The following table presents trust income by type of service provided for the years ended December 31, 2018, and 2017: 2018 2017 Personal trust and agency accounts $ 615 $ 1,012 Employee benefit and retirement-related trust and agency accounts 120 225 Investment management and investment advisory agency accounts 216 355 Custody and safekeeping accounts 26 68 Other 48 154 $ 1,025 $ 1,814 |
Atlantic Capital Bancshares, _2
Atlantic Capital Bancshares, Inc. (Parent Company Only) Financial Information (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Atlantic Capital Bancshares, Inc. (Parent Company Only) Financial Information | |
Balance Sheets | Balance Sheets (in thousands) December 31, 2019 2018 Assets Cash $ 7,752 $ 30,568 Investment in subsidiary 368,465 343,311 Other assets 938 260 Total assets $ 377,155 $ 374,139 Liabilities and shareholders’ equity Long-term debt $ 49,873 $ 49,704 Other liabilities 787 782 Total liabilities 50,660 50,486 Shareholders’ equity: Common stock 230,265 291,771 Retained earnings 91,669 42,187 Accumulated other comprehensive income 4,561 (10,305) Total shareholders’ equity 326,495 323,653 Total liabilities and shareholders’ equity $ 377,155 $ 374,139 |
Statements of Operations | Statements of Operations (in thousands) Year Ended December 31, 2019 2018 2017 Income: Interest income $ — $ 381 $ 197 Total income — 381 197 Expense: Interest on long-term debt 3,294 3,304 3,294 Other expense 1,231 1,134 1,113 Total expense 4,525 4,438 4,407 Loss before income tax expense and equity in undistributed (losses) earnings from subsidiary (4,525) (4,057) (4,210) Income tax benefit (1,217) (1,091) (1,681) Loss before equity in undistributed (losses) earnings of subsidiary (3,308) (2,966) (2,529) Equity in undistributed earnings (losses) of subsidiary 53,163 31,498 (1,197) Net income (loss) $ 49,855 $ 28,532 $ (3,726) |
Statements of Cash Flow | Statements of Cash Flows (in thousands) Year Ended December 31, 2019 2018 2017 Operating activities Net (loss) income $ 49,855 $ 28,532 $ (3,726) Adjustments to reconcile net income to net cash provided by (used in) operating activities: Equity in undistributed earnings of subsidiary (53,163) (31,498) 1,197 Decrease (increase) in other assets (1,521) (705) (1,264) (Decrease) increase in other liabilities 173 169 (1,354) Net cash provided by (used in) operating activities (4,656) (3,502) (5,147) Investing activities Net cash (used in) provided by investing activities — — — Financing activities Proceeds from exercise of stock options 1,154 4,096 3,567 Cash dividends received 45,500 30,000 — Repurchase of common stock (64,814) (14,177) — Net cash provided by financing activities (18,160) 19,919 3,567 Net (decrease) increase in cash and cash equivalents (22,816) 16,417 (1,580) Cash equivalents, beginning of year 30,568 14,151 15,731 Cash equivalents, end of year $ 7,752 $ 30,568 $ 14,151 |
Accounting Policies and Basis_3
Accounting Policies and Basis of Presentation - Narrative (Details) - item | Apr. 05, 2019 | Dec. 31, 2019 |
Business Acquisition [Line Items] | ||
Default period for interest accruals to cease on loans, days | 90 days | |
Sub-participation agreement aggregate ownership interest, percentage, participators | 99.00% | |
Sub-participation agreement aggregate ownership interest, percentage, originator | 1.00% | |
Mortgage warehouse loans interest purchased, percent | 40.00% | |
Bank loans time held, days (less than) | 30 days | |
Options to extend | True | |
Options to terminate | True | |
Number of branches sold | 14 | |
Buildings and improvements | Maximum | ||
Business Acquisition [Line Items] | ||
Useful life | 40 years | |
Equipment and furniture | Maximum | ||
Business Acquisition [Line Items] | ||
Useful life | 10 years | |
Equipment and furniture | Minimum | ||
Business Acquisition [Line Items] | ||
Useful life | 1 year | |
Leasehold improvements | Maximum | ||
Business Acquisition [Line Items] | ||
Useful life | 11 years | |
Leasehold improvements | Minimum | ||
Business Acquisition [Line Items] | ||
Useful life | 10 years |
Accounting Standards Updates _2
Accounting Standards Updates and Recently Adopted Standards (Details) - USD ($) | Dec. 31, 2019 | Jan. 01, 2019 | Dec. 31, 2018 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Operating lease liabilities | $ 16,865,000 | ||
Operating lease ROU assets | 11,900,000 | ||
Cumulative effect adjustment to retained earnings, net of tax | (373,000) | $ 1,000 | |
Retained Earnings | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Cumulative effect adjustment to retained earnings, net of tax | $ (373,000) | $ 1,000 | |
ASU No. 2016-02 | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Cumulative effect adjustment to retained earnings, net of tax | $ 373,000 | ||
ASU No. 2016-02 | Restatement Adjustment | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Operating lease liabilities | 18,900,000 | ||
Operating lease ROU assets | $ 14,500,000 |
Divestitures and Discontinued_3
Divestitures and Discontinued Operations (Narrative) (Details) $ in Thousands | Apr. 05, 2019USD ($)item | Dec. 14, 2017USD ($) | Jun. 30, 2019USD ($) | Jun. 30, 2018USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||
Number of branches sold | item | 14 | ||||||
Gain on sale of trust business | $ 0 | $ 1,681 | $ 0 | ||||
Goodwill impairment | 1,765 | $ 69 | |||||
Branch Sale | |||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||
Goodwill impairment | $ 1,800 | $ 1,200 | |||||
Branch Sale | Discontinued Operations | |||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||
Deposits and customer repurchase agreements assumed by buyer | $ 598,000 | ||||||
Amount of loans purchased by buyer | $ 385,000 | ||||||
Deposit premium paid (as a percent) | 6.25% | ||||||
Discount of purchased loans (as a percent) | 0.68% | ||||||
Southeastern Trust Company | Discontinued Operations | |||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||
Proceeds from divestiture of business | $ 1,800 | ||||||
Gain on sale of trust business | $ 1,700 | ||||||
Goodwill impairment | $ 69 |
Divestitures and Discontinued_4
Divestitures and Discontinued Operations - Components of Net Income from Discontinued Operations (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Divestitures and Discontinued Operations | |||
Net interest income | $ 3,086 | $ 14,140 | $ 18,310 |
Provision for loan losses | 0 | (3,097) | |
Net interest income after provision for loan losses | 3,086 | 17,237 | 18,310 |
Service charges | 527 | 1,922 | 2,342 |
Mortgage income | 288 | 1,302 | 1,255 |
Gain on sale of branches | 34,475 | 0 | 302 |
Other (loss) income | (1) | 123 | 111 |
Total noninterest income | 35,289 | 3,347 | 4,010 |
Salaries and employee benefits | 2,757 | 11,714 | 12,245 |
Occupancy | 410 | 2,016 | 2,073 |
Equipment and software | 131 | 779 | 1,108 |
Amortization of intangibles | 247 | 1,229 | 1,653 |
Communications and data processing | 586 | 1,529 | 1,524 |
Divestiture expense | 5,095 | 825 | 0 |
Other noninterest expense | 459 | 1,849 | 2,028 |
Total noninterest expense | 9,685 | 19,941 | 20,631 |
Net income before provision for income taxes | 28,690 | 643 | 1,689 |
Provision for income taxes | 6,993 | 161 | 659 |
Net income from discontinued operations | $ 21,697 | $ 482 | $ 1,030 |
Divestitures and Discontinued_5
Divestitures and Discontinued Operations - Assets and Liabilities from Discontinued Operations (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | |
Divestitures and Discontinued Operations | |||
Cash | $ 4,234 | ||
Loans held for sale - discontinued operations | [1] | $ 0 | 373,030 |
Premises held for sale - discontinued operations | [1] | 0 | 7,722 |
Goodwill - discontinued operations | [1] | 0 | 4,555 |
Core deposit intangible | 1,405 | ||
Total assets | 390,946 | ||
Deposits to be assumed - discontinued operations | [1] | 0 | 585,429 |
Securities sold under agreements to repurchase - discontinued operations | [1] | $ 0 | 6,220 |
Total liabilities | 591,649 | ||
Net liabilities | $ (200,703) | ||
[1] | Assets and liabilities related to the sale of Tennessee and northwest Georgia banking operations were classified as held for sale as of December 31, 2018. |
Balance Sheet Offsetting (Detai
Balance Sheet Offsetting (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Reverse repurchase agreements, Assets | ||
Gross Amounts of Recognized Assets | $ 9,457 | |
Gross Amounts Offset on the Balance Sheet | 0 | |
Net Asset Balance | 9,457 | |
Financial Instruments | (9,457) | |
Cash Collateral Received | 0 | |
Net Amount | 0 | |
Derivatives, Assets | ||
Gross Amounts of Recognized Assets | $ 8,856 | 1,961 |
Gross Amounts Offset on the Balance Sheet | 0 | 0 |
Net Asset Balance | 8,856 | 1,961 |
Financial Instruments | 0 | 0 |
Cash Collateral Received | 0 | 0 |
Net Amount | 8,856 | 1,961 |
Total, Assets | ||
Gross Amounts of Recognized Assets | 8,856 | 11,418 |
Gross Amounts Offset on the Balance Sheet | 0 | 0 |
Net Asset Balance | 8,856 | 11,418 |
Financial Instruments | 0 | (9,457) |
Cash Collateral Received | 0 | 0 |
Net Amount | 8,856 | 1,961 |
Repurchase agreements - discontinued operations, Liabilities | ||
Gross Amounts of Recognized Liabilities | 6,220 | |
Gross Amounts Offset on the Balance Sheet | 0 | |
Net Liability Balance | 6,220 | |
Financial Instruments | (6,220) | |
Cash Collateral Pledged | 0 | |
Net Amount | 0 | |
Derivatives, Liabilities | ||
Gross Amounts of Recognized Liabilities | 5,647 | 4,027 |
Gross Amounts Offset on the Balance Sheet | 0 | 0 |
Net Liability Balance | 5,647 | 4,027 |
Financial Instruments | (5,647) | (4,027) |
Cash Collateral Pledged | 0 | 0 |
Net Amount | 0 | 0 |
Total, Liabilities | ||
Gross Amounts of Recognized Liabilities | 5,647 | 10,247 |
Gross Amounts Offset on the Balance Sheet | 0 | 0 |
Net Liability Balance | 5,647 | 10,247 |
Financial Instruments | (5,647) | (10,247) |
Cash Collateral Pledged | 0 | 0 |
Net Amount | $ 0 | $ 0 |
Securities - Available-For-Sale
Securities - Available-For-Sale (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Available-For-Sale | ||
Amortized Cost | $ 279,277 | $ 414,283 |
Gross Unrealized Gains | 4,023 | 2,790 |
Gross Unrealized Losses | (839) | (14,587) |
Fair Value | 282,461 | 402,486 |
Held-to-Maturity | ||
Amortized Cost | 116,972 | 0 |
Gross Unrealized Gains | 104 | |
Gross Unrealized Losses | (1,785) | |
Fair Value | 115,291 | 0 |
Total securities | ||
Amortized Cost | 396,249 | |
Gross Unrealized Gains | 4,127 | |
Gross Unrealized Losses | (2,624) | |
Fair Value | 397,752 | |
U.S. government agencies | ||
Available-For-Sale | ||
Amortized Cost | 81,865 | 27,259 |
Gross Unrealized Gains | 863 | 24 |
Gross Unrealized Losses | (243) | (434) |
Fair Value | 82,485 | 26,849 |
U.S. states and political divisions | ||
Available-For-Sale | ||
Amortized Cost | 91,864 | |
Gross Unrealized Gains | 40 | |
Gross Unrealized Losses | (7,070) | |
Fair Value | 84,834 | |
Held-to-Maturity | ||
Amortized Cost | 116,972 | |
Gross Unrealized Gains | 104 | |
Gross Unrealized Losses | (1,785) | |
Fair Value | 115,291 | |
Trust preferred securities | ||
Available-For-Sale | ||
Amortized Cost | 4,808 | 4,781 |
Gross Unrealized Gains | 0 | |
Gross Unrealized Losses | (120) | (381) |
Fair Value | 4,688 | 4,400 |
Corporate debt securities | ||
Available-For-Sale | ||
Amortized Cost | 19,557 | 12,855 |
Gross Unrealized Gains | 363 | |
Gross Unrealized Losses | 0 | (492) |
Fair Value | 19,920 | 12,363 |
Residential mortgage-backed securities | ||
Available-For-Sale | ||
Amortized Cost | 173,047 | 277,524 |
Gross Unrealized Gains | 2,797 | 2,726 |
Gross Unrealized Losses | (476) | (6,210) |
Fair Value | $ 175,368 | $ 274,040 |
Securities - Contractual Maturi
Securities - Contractual Maturity (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Available-For-Sale, Amortized Cost | ||
Within 1 year | $ 6,044 | |
Over 1 year through 5 years | 4,027 | |
5 years to 10 years | 34,804 | |
Over 10 years | 61,355 | |
Amortized cost of securities with single maturity date | 106,230 | |
Residential mortgage-backed securities | 173,047 | |
Amortized Cost | 279,277 | $ 414,283 |
Available-For-Sale, Fair Value | ||
Within 1 year | 6,136 | |
Over 1 year through 5 years | 4,078 | |
5 years to 10 years | 35,152 | |
Over 10 years | 61,727 | |
Fair value of securities with single maturity date | 107,093 | |
Residential mortgage-backed securities | 175,368 | |
Fair Value | 282,461 | 402,486 |
Held-to-Maturity, Amortized Cost | ||
Over 10 years | 116,972 | |
Amortized cost of securities with single maturity date | 116,972 | |
Amortized Cost | 116,972 | 0 |
Held-to-Maturity, Fair Value | ||
Over 10 years | 115,291 | |
Fair value of securities with single maturity date | 115,291 | |
Fair Value | $ 115,291 | $ 0 |
Securities - Unrealized Losses
Securities - Unrealized Losses (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Available-for-Sale, Fair Value | ||
Less than 12 months | $ 30,770 | $ 40,785 |
12 months or greater, fair value | 39,069 | 304,582 |
Totals | 69,839 | 345,367 |
Available-for-Sale, Unrealized Losses | ||
Less than 12 months | (268) | (285) |
12 months or greater | (571) | (14,302) |
Totals | (839) | (14,587) |
Held-to-Maturity, Fair Value | ||
Less than 12 months | 96,854 | |
Totals | 96,854 | |
Held-to-Maturity, Unrealized Losses | ||
Less than 12 months | (1,785) | |
Totals | (1,785) | |
Total securities - Fair Value | ||
Less than 12 months | 127,624 | |
12 months or greater | 39,069 | |
Totals | 166,693 | |
Total securities - Unrealized losses | ||
Less than 12 months | (2,053) | |
12 months or greater | (571) | |
Totals | (2,624) | |
U.S. government agencies | ||
Available-for-Sale, Fair Value | ||
Less than 12 months | 1,487 | |
12 months or greater, fair value | 21,849 | |
Totals | 23,336 | |
Available-for-Sale, Unrealized Losses | ||
Less than 12 months | (19) | |
12 months or greater | (415) | |
Totals | (434) | |
U.S. states and political divisions | ||
Available-for-Sale, Fair Value | ||
Less than 12 months | 20,019 | 2,351 |
12 months or greater, fair value | 4,090 | 75,234 |
Totals | 24,109 | 77,585 |
Available-for-Sale, Unrealized Losses | ||
Less than 12 months | (190) | (54) |
12 months or greater | (53) | (7,016) |
Totals | (243) | (7,070) |
Held-to-Maturity, Fair Value | ||
Less than 12 months | 96,854 | |
Totals | 96,854 | |
Held-to-Maturity, Unrealized Losses | ||
Less than 12 months | (1,785) | |
Totals | (1,785) | |
Trust preferred securities | ||
Available-for-Sale, Fair Value | ||
Less than 12 months | 0 | 0 |
12 months or greater, fair value | 4,687 | 4,400 |
Totals | 4,687 | 4,400 |
Available-for-Sale, Unrealized Losses | ||
Less than 12 months | 0 | 0 |
12 months or greater | (120) | (381) |
Totals | (120) | (381) |
Corporate debt securities | ||
Available-for-Sale, Fair Value | ||
Less than 12 months | 6,009 | |
12 months or greater, fair value | 6,354 | |
Totals | 12,363 | |
Available-for-Sale, Unrealized Losses | ||
Less than 12 months | (60) | |
12 months or greater | (432) | |
Totals | (492) | |
Residential mortgage-backed securities | ||
Available-for-Sale, Fair Value | ||
Less than 12 months | 10,751 | 30,938 |
12 months or greater, fair value | 30,292 | 196,745 |
Totals | 41,043 | 227,683 |
Available-for-Sale, Unrealized Losses | ||
Less than 12 months | (78) | (152) |
12 months or greater | (398) | (6,058) |
Totals | $ (476) | $ (6,210) |
Securities - Narrative (Details
Securities - Narrative (Details) | 12 Months Ended | ||
Dec. 31, 2019USD ($)security | Dec. 31, 2018USD ($)security | Dec. 31, 2017USD ($) | |
Securities | |||
Number of available-for-sale securities in unrealized loss position | security | 77 | 271 | |
Number of held for maturity securities in unrealized loss position | security | 35 | ||
Impairment charges on securities available-for-sale | $ 0 | $ 0 | |
Carrying value of investment securities pledged to secure public funds and other borrowings | 32,300,000 | 65,300,000 | |
Investment securities available for sale | 282,461,000 | 402,486,000 | |
Impairments on SBICs | 26,000 | 228,000 | $ 0 |
SBIC Investments | |||
Securities | |||
Investment securities available for sale | 4,700,000 | 4,400,000 | |
Impairments on SBICs | $ 26,000 | $ 228,000 |
Securities - Realized Gains (Lo
Securities - Realized Gains (Losses) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Securities | |||
Proceeds from sales | $ 116,963 | $ 62,087 | $ 19,238 |
Gross realized gains | 1,675 | 0 | |
Gross realized losses | (768) | (1,855) | |
Net gains (losses) on sales of securities | $ 907 | $ (1,855) | $ (63) |
Loans and Allowance for Loan _3
Loans and Allowance for Loan Losses - Summary of Loans (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans held for sale - discontinued operations | $ 373,030 | ||
Loans held for sale - continuing operations | $ 370 | 5,889 | |
Total loans held for sale | 370 | 378,919 | |
Loans held for investment | 1,876,558 | 1,730,586 | |
Less net deferred fees and other unearned income | (3,034) | (2,513) | |
Less allowance for loan losses | (18,535) | (17,851) | $ (19,344) |
Loans held for investment, net | 1,854,989 | 1,710,222 | |
Other | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans held for investment | 19,552 | 24,712 | |
Commercial | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans held for investment | 1,762,924 | 1,624,401 | |
Less allowance for loan losses | (18,203) | (17,322) | (18,267) |
Commercial | Commercial and industrial | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans held for investment | 705,115 | 645,374 | |
Commercial | Commercial real estate | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans held for investment | 916,328 | 794,828 | |
Commercial | Construction and land | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans held for investment | 127,540 | 156,232 | |
Commercial | Mortgage warehouse participations | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans held for investment | 13,941 | 27,967 | |
Residential | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans held for investment | 56,317 | 55,622 | |
Less allowance for loan losses | (145) | (292) | (802) |
Residential | Residential mortgages | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans held for investment | 31,315 | 32,800 | |
Residential | Home equity | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans held for investment | 25,002 | 22,822 | |
Consumer | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans held for investment | 37,765 | 25,851 | |
Less allowance for loan losses | $ (187) | $ (237) | $ (275) |
Loans and Allowance for Loan _4
Loans and Allowance for Loan Losses - Narrative (Details) | 12 Months Ended | |
Dec. 31, 2019USD ($)loan | Dec. 31, 2018USD ($)loan | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans pledged as collateral | $ 729,600,000 | $ 752,700,000 |
Recorded investment in TDRs | $ 13,200,000 | $ 8,200,000 |
Number of loans | loan | 13 | 1 |
Subsequent defaults | $ 0 | $ 0 |
Principal Forgiveness | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Recorded investment in TDRs | 0 | 0 |
PCI Loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Remaining accretable fair value discount | 279,000,000,000 | 3,600,000 |
Commercial | Commercial real estate | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Commitments to lend additional funds | $ 4,000 | $ 28,000 |
Commercial | Commercial and industrial | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Number of loans | loan | 9 |
Loans and Allowance for Loan _5
Loans and Allowance for Loan Losses - Allowance Rollforward (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Allowance for Loan and Lease Losses [Roll Forward] | |||
Beginning balance | $ 17,851 | $ 19,344 | |
Provision for loan losses | 2,712 | 1,946 | $ 3,218 |
Provision for loan losses | 0 | (3,097) | |
Loans charged-off | (2,117) | (427) | |
Recoveries | 89 | 85 | |
Total ending allowance balance | 18,535 | 17,851 | 19,344 |
Commercial | |||
Allowance for Loan and Lease Losses [Roll Forward] | |||
Beginning balance | 17,322 | 18,267 | |
Provision for loan losses | 2,910 | 1,613 | |
Provision for loan losses | 0 | (2,429) | |
Loans charged-off | (2,069) | (176) | |
Recoveries | 40 | 47 | |
Total ending allowance balance | 18,203 | 17,322 | 18,267 |
Residential | |||
Allowance for Loan and Lease Losses [Roll Forward] | |||
Beginning balance | 292 | 802 | |
Provision for loan losses | (153) | 374 | |
Provision for loan losses | 0 | (653) | |
Loans charged-off | (9) | (235) | |
Recoveries | 15 | 4 | |
Total ending allowance balance | 145 | 292 | 802 |
Consumer | |||
Allowance for Loan and Lease Losses [Roll Forward] | |||
Beginning balance | 237 | 275 | |
Provision for loan losses | (45) | (41) | |
Provision for loan losses | 0 | (15) | |
Loans charged-off | (39) | (16) | |
Recoveries | 34 | 34 | |
Total ending allowance balance | $ 187 | $ 237 | $ 275 |
Loans and Allowance for Loan _6
Loans and Allowance for Loan Losses - Allowance Additional Information (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Allowance for loan losses, Individually evaluated for impairment | $ 1,010 | $ 317 |
Allowance for loan losses, Collectively evaluated for impairment | 17,525 | 17,534 |
Allowance for loan losses, Total ending allowance balance | 18,535 | 17,851 |
Loans, Individually evaluated for impairment | 22,817 | 10,434 |
Loans, Collectively evaluated for impairment | 1,853,741 | 1,720,152 |
Loans, Total ending allowance balance | 1,876,558 | 1,730,586 |
Commercial | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Allowance for loan losses, Individually evaluated for impairment | 1,010 | 317 |
Allowance for loan losses, Collectively evaluated for impairment | 17,193 | 17,005 |
Allowance for loan losses, Total ending allowance balance | 18,203 | 17,322 |
Loans, Individually evaluated for impairment | 22,091 | 10,273 |
Loans, Collectively evaluated for impairment | 1,740,833 | 1,614,128 |
Loans, Total ending allowance balance | 1,762,924 | 1,624,401 |
Residential | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Allowance for loan losses, Individually evaluated for impairment | 0 | 0 |
Allowance for loan losses, Collectively evaluated for impairment | 145 | 292 |
Allowance for loan losses, Total ending allowance balance | 145 | 292 |
Loans, Individually evaluated for impairment | 726 | 161 |
Loans, Collectively evaluated for impairment | 55,591 | 55,461 |
Loans, Total ending allowance balance | 56,317 | 55,622 |
Consumer | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Allowance for loan losses, Individually evaluated for impairment | 0 | 0 |
Allowance for loan losses, Collectively evaluated for impairment | 187 | 237 |
Allowance for loan losses, Total ending allowance balance | 187 | 237 |
Loans, Individually evaluated for impairment | 0 | 0 |
Loans, Collectively evaluated for impairment | 57,317 | 50,563 |
Loans, Total ending allowance balance | $ 57,317 | $ 50,563 |
Loans and Allowance for Loan _7
Loans and Allowance for Loan Losses - Impaired Loans (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Unpaid Principal Balance | ||
Impaired loans with no related allowance recorded | $ 12,697 | $ 6,381 |
Impaired loans with an allowance recorded | 11,215 | 4,262 |
Total impaired loans | 23,912 | 10,643 |
Recorded Investment | ||
Impaired loans with no related allowance recorded | 11,602 | 6,172 |
Impaired loans with an allowance recorded | 11,215 | 4,262 |
Total impaired loans | 22,817 | 10,434 |
Related Allowance | 1,010 | 317 |
Average Balance of Recorded Investment While Impaired | ||
Impaired loans with no related allowance recorded | 11,815 | 6,393 |
Impaired loans with an allowance recorded | 11,235 | 4,637 |
Total impaired loans | 23,050 | 11,030 |
Interest Income Recognized During Impairment | ||
Impaired loans with no related allowance recorded | 387 | 230 |
Impaired loans with an allowance recorded | 281 | 69 |
Total impaired loans | 668 | 299 |
Commercial | Commercial and industrial | ||
Unpaid Principal Balance | ||
Impaired loans with no related allowance recorded | 6,920 | 4,346 |
Impaired loans with an allowance recorded | 3,350 | 395 |
Recorded Investment | ||
Impaired loans with no related allowance recorded | 6,082 | 4,346 |
Impaired loans with an allowance recorded | 3,350 | 395 |
Related Allowance | 886 | 124 |
Average Balance of Recorded Investment While Impaired | ||
Impaired loans with no related allowance recorded | 6,270 | 4,529 |
Impaired loans with an allowance recorded | 3,370 | 395 |
Interest Income Recognized During Impairment | ||
Impaired loans with no related allowance recorded | 161 | 230 |
Impaired loans with an allowance recorded | 27 | |
Commercial | Commercial real estate | ||
Unpaid Principal Balance | ||
Impaired loans with no related allowance recorded | 5,005 | 1,828 |
Impaired loans with an allowance recorded | 7,865 | 3,867 |
Recorded Investment | ||
Impaired loans with no related allowance recorded | 4,794 | 1,665 |
Impaired loans with an allowance recorded | 7,865 | 3,867 |
Related Allowance | 124 | 193 |
Average Balance of Recorded Investment While Impaired | ||
Impaired loans with no related allowance recorded | 4,819 | 1,691 |
Impaired loans with an allowance recorded | 7,865 | 4,242 |
Interest Income Recognized During Impairment | ||
Impaired loans with no related allowance recorded | 226 | |
Impaired loans with an allowance recorded | 254 | 69 |
Residential | Residential mortgages | ||
Unpaid Principal Balance | ||
Impaired loans with no related allowance recorded | 72 | 207 |
Recorded Investment | ||
Impaired loans with no related allowance recorded | 26 | 161 |
Average Balance of Recorded Investment While Impaired | ||
Impaired loans with no related allowance recorded | 26 | $ 173 |
Residential | Home equity | ||
Unpaid Principal Balance | ||
Impaired loans with no related allowance recorded | 700 | |
Recorded Investment | ||
Impaired loans with no related allowance recorded | 700 | |
Average Balance of Recorded Investment While Impaired | ||
Impaired loans with no related allowance recorded | $ 700 |
Loans and Allowance for Loan _8
Loans and Allowance for Loan Losses - Troubled Debt Restructurings (Details) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019USD ($)loan | Dec. 31, 2018USD ($)loan | |
Financing Receivable, Modifications [Line Items] | ||
Number of Loans | loan | 13 | 1 |
Pre-Modification Outstanding Recorded Investment | $ 13,170 | $ 4,617 |
Post-Modification Outstanding Recorded Investment | $ 13,170 | $ 4,617 |
Commercial | Commercial and industrial | ||
Financing Receivable, Modifications [Line Items] | ||
Number of Loans | loan | 9 | |
Pre-Modification Outstanding Recorded Investment | $ 4,699 | |
Post-Modification Outstanding Recorded Investment | $ 4,699 | |
Commercial | Commercial real estate | ||
Financing Receivable, Modifications [Line Items] | ||
Number of Loans | loan | 4 | 1 |
Pre-Modification Outstanding Recorded Investment | $ 8,471 | $ 4,617 |
Post-Modification Outstanding Recorded Investment | $ 8,471 | $ 4,617 |
Loans and Allowance for Loan _9
Loans and Allowance for Loan Losses - Related Party Loans (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Loans and Leases Receivable, Related Parties [Roll Forward] | ||
Balance at January 1, | $ 1,885 | |
Additions | $ 6 | 4,362 |
Repayments | $ (6) | $ (6,247) |
Loans and Allowance for Loan_10
Loans and Allowance for Loan Losses - Risk Category of Loan by Class of Loan (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Financing Receivable, Impaired [Line Items] | ||
Financing receivable, gross | $ 1,876,558 | $ 1,730,586 |
Financing receivable gross, including discontinued operations | 2,103,616 | |
Pass | ||
Financing Receivable, Impaired [Line Items] | ||
Financing receivable, gross | 1,793,033 | |
Financing receivable gross, including discontinued operations | 2,040,723 | |
Special Mention | ||
Financing Receivable, Impaired [Line Items] | ||
Financing receivable, gross | 46,162 | |
Financing receivable gross, including discontinued operations | 18,648 | |
Substandard | Accruing Loans | ||
Financing Receivable, Impaired [Line Items] | ||
Financing receivable, gross | 30,155 | |
Financing receivable gross, including discontinued operations | 39,548 | |
Substandard | Nonaccruing Loans | ||
Financing Receivable, Impaired [Line Items] | ||
Financing receivable, gross | 7,104 | |
Financing receivable gross, including discontinued operations | 2,769 | |
Doubtful Nonaccruing | ||
Financing Receivable, Impaired [Line Items] | ||
Financing receivable gross, including discontinued operations | 1,928 | |
Doubtful Nonaccruing | Nonaccruing Loans | ||
Financing Receivable, Impaired [Line Items] | ||
Financing receivable, gross | 104 | |
Commercial | ||
Financing Receivable, Impaired [Line Items] | ||
Financing receivable, gross | 1,762,924 | 1,624,401 |
Commercial | Commercial and industrial | ||
Financing Receivable, Impaired [Line Items] | ||
Financing receivable, gross | 705,115 | |
Financing receivable gross, including discontinued operations | 702,403 | |
Commercial | Commercial real estate | ||
Financing Receivable, Impaired [Line Items] | ||
Financing receivable, gross | 916,328 | |
Financing receivable gross, including discontinued operations | 968,053 | |
Commercial | Construction and land | ||
Financing Receivable, Impaired [Line Items] | ||
Financing receivable, gross | 127,540 | |
Financing receivable gross, including discontinued operations | 169,752 | |
Commercial | Mortgage warehouse participations | ||
Financing Receivable, Impaired [Line Items] | ||
Financing receivable, gross | 13,941 | |
Financing receivable gross, including discontinued operations | 27,967 | |
Commercial | Pass | Commercial and industrial | ||
Financing Receivable, Impaired [Line Items] | ||
Financing receivable, gross | 648,895 | |
Financing receivable gross, including discontinued operations | 671,992 | |
Commercial | Pass | Commercial real estate | ||
Financing Receivable, Impaired [Line Items] | ||
Financing receivable, gross | 891,078 | |
Financing receivable gross, including discontinued operations | 946,612 | |
Commercial | Pass | Construction and land | ||
Financing Receivable, Impaired [Line Items] | ||
Financing receivable, gross | 127,540 | |
Financing receivable gross, including discontinued operations | 169,687 | |
Commercial | Pass | Mortgage warehouse participations | ||
Financing Receivable, Impaired [Line Items] | ||
Financing receivable, gross | 13,941 | |
Financing receivable gross, including discontinued operations | 22,192 | |
Commercial | Special Mention | Commercial and industrial | ||
Financing Receivable, Impaired [Line Items] | ||
Financing receivable, gross | 40,179 | |
Financing receivable gross, including discontinued operations | 6,802 | |
Commercial | Special Mention | Commercial real estate | ||
Financing Receivable, Impaired [Line Items] | ||
Financing receivable, gross | 5,483 | |
Financing receivable gross, including discontinued operations | 4,754 | |
Commercial | Special Mention | Construction and land | ||
Financing Receivable, Impaired [Line Items] | ||
Financing receivable, gross | 0 | |
Financing receivable gross, including discontinued operations | 40 | |
Commercial | Special Mention | Mortgage warehouse participations | ||
Financing Receivable, Impaired [Line Items] | ||
Financing receivable, gross | 0 | |
Financing receivable gross, including discontinued operations | 5,775 | |
Commercial | Substandard | Accruing Loans | Commercial and industrial | ||
Financing Receivable, Impaired [Line Items] | ||
Financing receivable, gross | 10,051 | |
Financing receivable gross, including discontinued operations | 22,777 | |
Commercial | Substandard | Accruing Loans | Commercial real estate | ||
Financing Receivable, Impaired [Line Items] | ||
Financing receivable, gross | 19,504 | |
Financing receivable gross, including discontinued operations | 14,914 | |
Commercial | Substandard | Accruing Loans | Construction and land | ||
Financing Receivable, Impaired [Line Items] | ||
Financing receivable, gross | 0 | |
Financing receivable gross, including discontinued operations | 25 | |
Commercial | Substandard | Accruing Loans | Mortgage warehouse participations | ||
Financing Receivable, Impaired [Line Items] | ||
Financing receivable, gross | 0 | |
Financing receivable gross, including discontinued operations | 0 | |
Commercial | Substandard | Nonaccruing Loans | Commercial and industrial | ||
Financing Receivable, Impaired [Line Items] | ||
Financing receivable, gross | 5,990 | |
Financing receivable gross, including discontinued operations | 832 | |
Commercial | Substandard | Nonaccruing Loans | Commercial real estate | ||
Financing Receivable, Impaired [Line Items] | ||
Financing receivable, gross | 263 | |
Financing receivable gross, including discontinued operations | 126 | |
Commercial | Substandard | Nonaccruing Loans | Construction and land | ||
Financing Receivable, Impaired [Line Items] | ||
Financing receivable, gross | 0 | |
Financing receivable gross, including discontinued operations | 0 | |
Commercial | Substandard | Nonaccruing Loans | Mortgage warehouse participations | ||
Financing Receivable, Impaired [Line Items] | ||
Financing receivable, gross | 0 | |
Financing receivable gross, including discontinued operations | 0 | |
Commercial | Doubtful Nonaccruing | Commercial real estate | ||
Financing Receivable, Impaired [Line Items] | ||
Financing receivable gross, including discontinued operations | 1,647 | |
Commercial | Doubtful Nonaccruing | Construction and land | ||
Financing Receivable, Impaired [Line Items] | ||
Financing receivable gross, including discontinued operations | 0 | |
Commercial | Doubtful Nonaccruing | Mortgage warehouse participations | ||
Financing Receivable, Impaired [Line Items] | ||
Financing receivable gross, including discontinued operations | 0 | |
Commercial | Doubtful Nonaccruing | Nonaccruing Loans | Commercial and industrial | ||
Financing Receivable, Impaired [Line Items] | ||
Financing receivable, gross | 0 | |
Commercial | Doubtful Nonaccruing | Nonaccruing Loans | Construction and land | ||
Financing Receivable, Impaired [Line Items] | ||
Financing receivable, gross | 0 | |
Commercial | Doubtful Nonaccruing | Nonaccruing Loans | Mortgage warehouse participations | ||
Financing Receivable, Impaired [Line Items] | ||
Financing receivable, gross | 0 | |
Residential | ||
Financing Receivable, Impaired [Line Items] | ||
Financing receivable, gross | 56,317 | 55,622 |
Residential | Residential mortgages | ||
Financing Receivable, Impaired [Line Items] | ||
Financing receivable, gross | 31,315 | |
Financing receivable gross, including discontinued operations | 122,244 | |
Residential | Home equity | ||
Financing Receivable, Impaired [Line Items] | ||
Financing receivable, gross | 25,002 | |
Financing receivable gross, including discontinued operations | 55,592 | |
Residential | Pass | Residential mortgages | ||
Financing Receivable, Impaired [Line Items] | ||
Financing receivable, gross | 30,941 | |
Financing receivable gross, including discontinued operations | 118,265 | |
Residential | Pass | Home equity | ||
Financing Receivable, Impaired [Line Items] | ||
Financing receivable, gross | 24,302 | |
Financing receivable gross, including discontinued operations | 54,707 | |
Residential | Special Mention | Residential mortgages | ||
Financing Receivable, Impaired [Line Items] | ||
Financing receivable gross, including discontinued operations | 1,119 | |
Residential | Special Mention | Home equity | ||
Financing Receivable, Impaired [Line Items] | ||
Financing receivable, gross | 0 | |
Financing receivable gross, including discontinued operations | 92 | |
Residential | Substandard | Accruing Loans | Residential mortgages | ||
Financing Receivable, Impaired [Line Items] | ||
Financing receivable, gross | 119 | |
Financing receivable gross, including discontinued operations | 1,441 | |
Residential | Substandard | Accruing Loans | Home equity | ||
Financing Receivable, Impaired [Line Items] | ||
Financing receivable, gross | 0 | |
Financing receivable gross, including discontinued operations | 294 | |
Residential | Substandard | Nonaccruing Loans | Residential mortgages | ||
Financing Receivable, Impaired [Line Items] | ||
Financing receivable, gross | 151 | |
Financing receivable gross, including discontinued operations | 1,138 | |
Residential | Substandard | Nonaccruing Loans | Home equity | ||
Financing Receivable, Impaired [Line Items] | ||
Financing receivable, gross | 700 | |
Financing receivable gross, including discontinued operations | 499 | |
Residential | Doubtful Nonaccruing | Residential mortgages | ||
Financing Receivable, Impaired [Line Items] | ||
Financing receivable gross, including discontinued operations | 281 | |
Residential | Doubtful Nonaccruing | Home equity | ||
Financing Receivable, Impaired [Line Items] | ||
Financing receivable gross, including discontinued operations | 0 | |
Residential | Doubtful Nonaccruing | Nonaccruing Loans | Residential mortgages | ||
Financing Receivable, Impaired [Line Items] | ||
Financing receivable, gross | 104 | |
Residential | Doubtful Nonaccruing | Nonaccruing Loans | Home equity | ||
Financing Receivable, Impaired [Line Items] | ||
Financing receivable, gross | 0 | |
Consumer | ||
Financing Receivable, Impaired [Line Items] | ||
Financing receivable, gross | 57,317 | 50,563 |
Financing receivable gross, including discontinued operations | 57,605 | |
Consumer | Other | ||
Financing Receivable, Impaired [Line Items] | ||
Financing receivable, gross | 57,317 | |
Financing receivable gross, including discontinued operations | 57,605 | |
Consumer | Pass | Other | ||
Financing Receivable, Impaired [Line Items] | ||
Financing receivable, gross | 56,336 | |
Financing receivable gross, including discontinued operations | 57,268 | |
Consumer | Special Mention | Other | ||
Financing Receivable, Impaired [Line Items] | ||
Financing receivable, gross | 500 | |
Financing receivable gross, including discontinued operations | 66 | |
Consumer | Substandard | Accruing Loans | Other | ||
Financing Receivable, Impaired [Line Items] | ||
Financing receivable, gross | 481 | |
Financing receivable gross, including discontinued operations | 97 | |
Consumer | Substandard | Nonaccruing Loans | Other | ||
Financing Receivable, Impaired [Line Items] | ||
Financing receivable, gross | 0 | |
Financing receivable gross, including discontinued operations | 174 | |
Consumer | Doubtful Nonaccruing | Other | ||
Financing Receivable, Impaired [Line Items] | ||
Financing receivable gross, including discontinued operations | $ 0 | |
Consumer | Doubtful Nonaccruing | Nonaccruing Loans | Other | ||
Financing Receivable, Impaired [Line Items] | ||
Financing receivable, gross | $ 0 |
Loans and Allowance for Loan_11
Loans and Allowance for Loan Losses - Financing Receivables Past Due (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Financing Receivable, Past Due [Line Items] | ||
Accruing Current | $ 1,863,129 | $ 2,085,623 |
Nonaccruing | 7,208 | 4,697 |
Financing receivable, gross, including discontinued operations | 2,103,616 | |
Loans, Total ending allowance balance | 1,876,558 | 1,730,586 |
Financing Receivables 30 To 89 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Accruing past due | 6,136 | 12,817 |
Accruing 90 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Accruing past due | 85 | 479 |
Commercial | ||
Financing Receivable, Past Due [Line Items] | ||
Loans, Total ending allowance balance | 1,762,924 | 1,624,401 |
Commercial | Commercial and industrial | ||
Financing Receivable, Past Due [Line Items] | ||
Accruing Current | 695,026 | 692,308 |
Nonaccruing | 5,990 | 832 |
Financing receivable, gross, including discontinued operations | 702,403 | |
Loans, Total ending allowance balance | 705,115 | |
Commercial | Commercial real estate | ||
Financing Receivable, Past Due [Line Items] | ||
Accruing Current | 914,787 | 963,579 |
Nonaccruing | 262 | 1,773 |
Financing receivable, gross, including discontinued operations | 968,053 | |
Loans, Total ending allowance balance | 916,328 | |
Commercial | Construction and land | ||
Financing Receivable, Past Due [Line Items] | ||
Accruing Current | 127,540 | 169,752 |
Nonaccruing | 0 | 0 |
Financing receivable, gross, including discontinued operations | 169,752 | |
Loans, Total ending allowance balance | 127,540 | |
Commercial | Mortgage warehouse participations | ||
Financing Receivable, Past Due [Line Items] | ||
Accruing Current | 13,941 | 27,967 |
Nonaccruing | 0 | 0 |
Financing receivable, gross, including discontinued operations | 27,967 | |
Loans, Total ending allowance balance | 13,941 | |
Commercial | Financing Receivables 30 To 89 Days Past Due | Commercial and industrial | ||
Financing Receivable, Past Due [Line Items] | ||
Accruing past due | 4,099 | 8,785 |
Commercial | Financing Receivables 30 To 89 Days Past Due | Commercial real estate | ||
Financing Receivable, Past Due [Line Items] | ||
Accruing past due | 1,194 | 2,701 |
Commercial | Financing Receivables 30 To 89 Days Past Due | Construction and land | ||
Financing Receivable, Past Due [Line Items] | ||
Accruing past due | 0 | 0 |
Commercial | Financing Receivables 30 To 89 Days Past Due | Mortgage warehouse participations | ||
Financing Receivable, Past Due [Line Items] | ||
Accruing past due | 0 | 0 |
Commercial | Accruing 90 Days Past Due | Commercial and industrial | ||
Financing Receivable, Past Due [Line Items] | ||
Accruing past due | 478 | |
Commercial | Accruing 90 Days Past Due | Commercial real estate | ||
Financing Receivable, Past Due [Line Items] | ||
Accruing past due | 85 | 0 |
Commercial | Accruing 90 Days Past Due | Construction and land | ||
Financing Receivable, Past Due [Line Items] | ||
Accruing past due | 0 | 0 |
Commercial | Accruing 90 Days Past Due | Mortgage warehouse participations | ||
Financing Receivable, Past Due [Line Items] | ||
Accruing past due | 0 | 0 |
Residential | ||
Financing Receivable, Past Due [Line Items] | ||
Loans, Total ending allowance balance | 56,317 | 55,622 |
Residential | Residential mortgages | ||
Financing Receivable, Past Due [Line Items] | ||
Accruing Current | 30,352 | 119,932 |
Nonaccruing | 256 | 1,419 |
Financing receivable, gross, including discontinued operations | 122,244 | |
Loans, Total ending allowance balance | 31,315 | |
Residential | Home equity | ||
Financing Receivable, Past Due [Line Items] | ||
Accruing Current | 24,302 | 54,714 |
Nonaccruing | 700 | 499 |
Financing receivable, gross, including discontinued operations | 55,592 | |
Loans, Total ending allowance balance | 25,002 | |
Residential | Financing Receivables 30 To 89 Days Past Due | Residential mortgages | ||
Financing Receivable, Past Due [Line Items] | ||
Accruing past due | 707 | 893 |
Residential | Financing Receivables 30 To 89 Days Past Due | Home equity | ||
Financing Receivable, Past Due [Line Items] | ||
Accruing past due | 0 | 379 |
Residential | Accruing 90 Days Past Due | Residential mortgages | ||
Financing Receivable, Past Due [Line Items] | ||
Accruing past due | 0 | |
Residential | Accruing 90 Days Past Due | Home equity | ||
Financing Receivable, Past Due [Line Items] | ||
Accruing past due | 0 | 0 |
Consumer | ||
Financing Receivable, Past Due [Line Items] | ||
Accruing Current | 57,181 | 57,371 |
Nonaccruing | 174 | |
Financing receivable, gross, including discontinued operations | 57,605 | |
Loans, Total ending allowance balance | 57,317 | 50,563 |
Consumer | Other | ||
Financing Receivable, Past Due [Line Items] | ||
Financing receivable, gross, including discontinued operations | 57,605 | |
Loans, Total ending allowance balance | 57,317 | |
Consumer | Financing Receivables 30 To 89 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Accruing past due | $ 136 | 59 |
Consumer | Accruing 90 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Accruing past due | $ 1 |
Premises and Equipment - Summar
Premises and Equipment - Summary (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Premises and Equipment | ||
Premises and equipment-gross | $ 32,763 | $ 30,388 |
Accumulated depreciation | (10,227) | (12,887) |
Premises and equipment-net | 22,536 | 17,501 |
Land and improvements | ||
Premises and Equipment | ||
Premises and equipment-gross | 0 | 1,902 |
Buildings and improvements | ||
Premises and Equipment | ||
Premises and equipment-gross | 0 | 7,402 |
Leasehold improvements | ||
Premises and Equipment | ||
Premises and equipment-gross | 9,040 | 7,745 |
Equipment, furniture and software | ||
Premises and Equipment | ||
Premises and equipment-gross | 11,636 | 13,339 |
Right of use asset - leases | ||
Premises and Equipment | ||
Premises and equipment-gross | 11,940 | 0 |
Projects in process | ||
Premises and Equipment | ||
Premises and equipment-gross | $ 147 | $ 0 |
Premises and Equipment - Other
Premises and Equipment - Other (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | ||
Premises and Equipment | ||||
Depreciation expense | $ 1,800 | $ 1,900 | $ 1,600 | |
Premises held for sale - discontinued operations | [1] | 0 | 7,722 | |
Discontinued Operations | ||||
Premises and Equipment | ||||
Premises and equipment held for sale - discontinued operations | $ 0 | $ 7,700 | ||
[1] | Assets and liabilities related to the sale of Tennessee and northwest Georgia banking operations were classified as held for sale as of December 31, 2018. |
Premises and Equipment - Leases
Premises and Equipment - Leases, contracts (Details) $ in Thousands | Dec. 31, 2019USD ($) |
Leases | |
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List] | Property, Plant and Equipment, Net |
Operating Lease, Liability, Statement of Financial Position [Extensible List] | Other Liabilities |
Operating lease ROU assets | $ 11,900 |
Operating lease liabilities | $ 16,865 |
Minimum | |
Leases | |
Contract terms | 1 year |
Contract renewal terms | 5 years |
Maximum | |
Leases | |
Contract terms | 12 years |
Contract renewal terms | 10 years |
Premises and Equipment - Rent E
Premises and Equipment - Rent Expense (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Premises and Equipment | |||
Rent expense | $ 2.3 | ||
Rent expense | $ 3.1 | $ 2.7 |
Premises and Equipment - Leas_2
Premises and Equipment - Leases, net lease cost (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Net least cost: | |
Operating lease cost | $ 2,274 |
Short-term lease cost | 44 |
Sublease income | (252) |
Net lease cost | $ 2,066 |
Premises and Equipment - Leas_3
Premises and Equipment - Leases, other (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Premises and Equipment | |
Operating cash paid for amounts included in the measurement of lease liabilities | $ 1,944 |
Right-of-use assets obtained in exchange for new finance lease liabilities | $ 17,807 |
Weighted-average remaining lease term - operating leases | 9 years |
Weighted-average discount rate - operating leases | 3.10% |
Premises and Equipment - Leas_4
Premises and Equipment - Leases, maturity (Details) $ in Thousands | Dec. 31, 2019USD ($) |
Maturity of remaining lease liabilities: | |
December 31, 2020 | $ 2,062 |
December 31, 2021 | 2,176 |
December 31, 2022 | 2,418 |
December 31, 2023 | 2,025 |
December 31, 2024 | 1,937 |
Thereafter | 9,437 |
Total future minimum lease payments | 20,055 |
Less: Interest | (3,190) |
Present value of net future minimum lease payments | $ 16,865 |
Operating Lease, Liability, Statement of Financial Position [Extensible List] | Other Liabilities |
Premises and Equipment - Branch
Premises and Equipment - Branch Sale (Details) - Branch Sale $ in Millions | Apr. 05, 2019item | Jun. 30, 2019USD ($) |
Premises and Equipment | ||
Number of branches sold that were owned by the company | item | 8 | |
Number of branches sold that were leased | item | 9 | |
Reduction of ROU asset | $ | $ 3.6 | |
Reduction of lease liability | $ | $ 4.1 |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets - Summary (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Finite-Lived Intangible Assets [Line Items] | ||||
Total intangibles subject to amortization, net | $ 3,027 | $ 4,388 | ||
Goodwill - discontinued operations | [1] | 0 | 4,555 | |
Goodwill - continuing operations | [1] | 19,925 | 17,135 | |
Total goodwill and other intangible assets, net | 22,952 | 26,078 | ||
Core Deposit Intangible | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Core deposit intangible | 9,544 | 9,544 | ||
Less: accumulated amortization | (6,100) | (5,853) | ||
Less: impairment to date related to divested branches | (3,444) | (2,286) | ||
Core deposit intangible, net - discontinued operations | 1,405 | $ 2,634 | ||
Servicing assets, net | 9,544 | 9,544 | ||
Servicing Assets | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Core deposit intangible | 3,027 | 2,983 | ||
Servicing assets, net | 3,027 | 2,983 | ||
Total intangibles subject to amortization, net | $ 3,027 | $ 4,388 | ||
[1] | Assets and liabilities related to the sale of Tennessee and northwest Georgia banking operations were classified as held for sale as of December 31, 2018. |
Goodwill and Intangible Asset_3
Goodwill and Intangible Assets - Narrative (Details) $ in Thousands | Apr. 05, 2019item | Jun. 30, 2019USD ($) | Jun. 30, 2018USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) |
Finite-Lived Intangible Assets [Line Items] | ||||||
Number of branches sold | item | 14 | |||||
Goodwill impairment | $ 1,765 | $ 69 | ||||
Amortization expense | 247 | 1,229 | ||||
Core Deposit Intangible | ||||||
Finite-Lived Intangible Assets [Line Items] | ||||||
Amortization expense | 247 | $ 1,229 | $ 1,700 | |||
Branch Sale | ||||||
Finite-Lived Intangible Assets [Line Items] | ||||||
Goodwill impairment | $ 1,800 | $ 1,200 | ||||
Sale of the trust business | ||||||
Finite-Lived Intangible Assets [Line Items] | ||||||
Goodwill impairment | $ 69 |
Goodwill and Intangible Asset_4
Goodwill and Intangible Assets - Activity (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Goodwill | |||
Balance, beginning of period | $ 21,690 | $ 21,759 | |
Impairment, due to Branch Sale | (1,765) | (69) | |
Balance, end of period | 19,925 | 21,690 | $ 21,759 |
Core Deposit Intangible | |||
Amortization | (247) | (1,229) | |
Total | |||
Balance, beginning of period | 23,095 | 24,393 | |
Amortization | (247) | (1,229) | |
Goodwill and core deposit intangible, Impairment | (2,923) | (69) | |
Balance, end of period | 19,925 | 23,095 | 24,393 |
Core Deposit Intangible | |||
Core Deposit Intangible | |||
Balance, beginning of period | 1,405 | 2,634 | |
Amortization | (247) | (1,229) | (1,700) |
Impairment, due to Branch Sale | (1,158) | ||
Balance, end of period | 1,405 | 2,634 | |
Total | |||
Amortization | $ (247) | $ (1,229) | $ (1,700) |
Servicing Rights - Narrative (D
Servicing Rights - Narrative (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Servicing Rights | ||
Loans sold and serviced | $ 185,500 | $ 161,510 |
Servicing Rights - Changes in t
Servicing Rights - Changes in the Balance of Servicing Assets (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
SBA Servicing Assets | ||
Loan Servicing Rights | ||
Beginning carrying value, net | $ 2,539 | $ 2,635 |
Additions | 1,226 | 823 |
Amortization | (1,034) | (919) |
Ending carrying value | 2,731 | 2,539 |
TriNet Servicing Assets | ||
Loan Servicing Rights | ||
Beginning carrying value, net | 444 | 605 |
Amortization | (148) | (161) |
Ending carrying value | $ 296 | $ 444 |
Servicing Rights - Sensitivity
Servicing Rights - Sensitivity of the Fair Value to Immediate Changes in Key Economic Assumptions (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
SBA Servicing Assets | ||
Sensitivity Analysis of Fair Value of Interests Continued to be Held by Transferor, Servicing Assets or Liabilities, Impact of Adverse Change in Assumption [Line Items] | ||
Fair value of retained servicing assets | $ 2,842 | $ 2,630 |
Weighted average life | 3 years 9 months 7 days | 4 years 9 months 29 days |
Prepayment speed (as a percent) | 14.87% | 11.92% |
Decline in fair value due to a 10% adverse change | $ (150) | $ (131) |
Decline in fair value due to a 20% adverse change | $ (254) | $ (223) |
Weighted average discount rate | 13.66% | 14.42% |
Decline in fair value due to a 100 bps adverse change | $ (98) | $ (101) |
Decline in fair value due to a 200 bps adverse change | (156) | (165) |
TriNet Servicing Assets | ||
Sensitivity Analysis of Fair Value of Interests Continued to be Held by Transferor, Servicing Assets or Liabilities, Impact of Adverse Change in Assumption [Line Items] | ||
Fair value of retained servicing assets | $ 414 | $ 515 |
Weighted average life | 5 years 6 months 29 days | 6 years 5 months 23 days |
Prepayment speed (as a percent) | 5.00% | 5.00% |
Decline in fair value due to a 10% adverse change | $ (5) | $ (7) |
Decline in fair value due to a 20% adverse change | $ (10) | $ (14) |
Weighted average discount rate | 8.00% | 8.00% |
Decline in fair value due to a 100 bps adverse change | $ (9) | $ (13) |
Decline in fair value due to a 200 bps adverse change | $ (18) | $ (25) |
Deposits - Summary (Details)
Deposits - Summary (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | |
Regulatory Matters | |||
Non-interest bearing demand deposits | [1] | $ 824,646 | $ 602,252 |
Interest-bearing demand deposits | [1] | 373,727 | 252,490 |
Savings and money market deposits | 1,174,437 | 987,908 | |
Time deposits less than $250,000 | 37,680 | 3,630 | |
Time deposits $250,000 or greater | 6,709 | 6,993 | |
Brokered deposits | 81,847 | 99,241 | |
Total deposits | 2,499,046 | 1,952,514 | |
Deposits to be assumed - discontinued operations | [1] | $ 0 | $ 585,429 |
[1] | Assets and liabilities related to the sale of Tennessee and northwest Georgia banking operations were classified as held for sale as of December 31, 2018. |
Deposits - Other (Details)
Deposits - Other (Details) - USD ($) | Dec. 31, 2019 | Dec. 31, 2018 |
Regulatory Matters | ||
Deposit reclassified as loans receivable | $ 383,000 | $ 1,300,000 |
Deposits issued as collateral | 32,300,000 | 65,300,000 |
Deposits of certain officers, directors, and their associates | $ 9,200,000 | $ 8,400,000 |
Deposits - Maturities (Details)
Deposits - Maturities (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | |
Time | |||
2020 | $ 38,446 | ||
2021 | 5,005 | ||
2022 | 866 | ||
2023 | 0 | ||
2024 | 44 | ||
Thereafter | 28 | ||
Time Deposits, Total | [1] | 44,389 | $ 10,623 |
Brokered | |||
2020 | 79,276 | ||
2021 | 2,571 | ||
2022 | 0 | ||
2023 | 0 | ||
2024 | 0 | ||
Thereafter | 0 | ||
Brokered Deposits, Total | $ 81,847 | $ 99,241 | |
[1] | Assets and liabilities related to the sale of Tennessee and northwest Georgia banking operations were classified as held for sale as of December 31, 2018. |
Other Borrowings and Long Ter_3
Other Borrowings and Long Term Debt - Narrative (Details) - USD ($) | Sep. 28, 2015 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Other Borrowings and Long-Term Debt | ||||
Federal Home Loan Bank borrowings | $ 0 | $ 0 | ||
Interest expense for FHLB borrowings | 817,000 | 2,399,000 | $ 1,536,000 | |
FHLB Advances | 0 | |||
Available line of credit commitments | 723,300,000 | |||
Available line of credit based on collateral available | 155,800,000 | |||
Federal funds purchased | 479,000 | 303,000 | $ 222,000 | |
Subordinated Debt | ||||
Other Borrowings and Long-Term Debt | ||||
Aggregate principal amount | $ 50,000,000 | 50,000,000 | ||
Debt instrument term | 5 years | |||
Floating rate 10 year capital securities, with interest paid semi-annually at an annual fixed rate of 6.25% until September 30, 2020 | Subordinated Debt | ||||
Other Borrowings and Long-Term Debt | ||||
Aggregate principal amount | $ 50,000,000 | $ 50,000,000 | $ 50,000,000 | |
Fixed rate of interest | 6.25% | 6.25% | 6.25% | |
Debt instrument redemption price (as a percent) | 100.00% | |||
Debt instrument term | 10 years | |||
Subordinated Note After September 30, 2020 Due September 2025 | Subordinated Debt | ||||
Other Borrowings and Long-Term Debt | ||||
Basis spread on variable rate | 468.00% | |||
Federal Home Loan Bank of Atlanta | ||||
Other Borrowings and Long-Term Debt | ||||
Available line of credit based on collateral available | $ 410,900,000 |
Other Borrowings and Long Ter_4
Other Borrowings and Long Term Debt - Subordinated Debt (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Sep. 28, 2015 | |
Debt Instrument [Line Items] | |||
Subordinated debt, net | $ 49,873,000 | $ 49,704,000 | |
Subordinated Debt | |||
Debt Instrument [Line Items] | |||
Principal amount | 50,000,000 | 50,000,000 | |
Less debt issuance costs | 127,000 | 296,000 | |
Subordinated debt, net | $ 49,873,000 | 49,704,000 | |
Debt instrument term | 5 years | ||
Subordinated Debt | Floating rate 10 year capital securities, with interest paid semi-annually at an annual fixed rate of 6.25% until September 30, 2020 | |||
Debt Instrument [Line Items] | |||
Principal amount | $ 50,000,000 | $ 50,000,000 | $ 50,000,000 |
Debt instrument term | 10 years | ||
Annual fixed rate | 6.25% | 6.25% | 6.25% |
Other Comprehensive (Loss) In_3
Other Comprehensive (Loss) Income (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
After-Tax Amount | |||
Beginning balance | $ 323,653 | $ 308,425 | $ 303,658 |
Other comprehensive income (loss), net of tax | 14,866 | (5,602) | 1,766 |
Ending balance | 326,495 | 323,653 | 308,425 |
Accumulated other comprehensive income (loss) | |||
Pre-Tax Amount | |||
Beginning balance | (13,743) | (6,274) | (9,144) |
Ending balance | 6,081 | (13,743) | (6,274) |
Income Tax (Expense) Benefit | |||
Beginning balance | 3,438 | 2,415 | 3,519 |
Reclassification of tax effects from AOCI | (844) | ||
Ending balance | (1,520) | 3,438 | 2,415 |
After-Tax Amount | |||
Beginning balance | (10,305) | (3,859) | (5,625) |
Reclassification of tax effects from AOCI | (844) | ||
Ending balance | 4,561 | (10,305) | (3,859) |
Accumulated Net Investment Gain (Loss) from Available-for-Sale Securities | |||
Pre-Tax Amount | |||
Unrealized net gains (losses) on investment securities available-for-sale | 15,888 | (8,070) | 3,876 |
Reclassification adjustment for net realized (gains) losses on investment securities available-for-sale | (907) | 1,855 | 181 |
Income Tax (Expense) Benefit | |||
Unrealized net gains (losses) on investment securities available-for-sale | (3,974) | 2,018 | (1,491) |
Reclassification adjustment for net realized losses on investment securities available-for-sale | 227 | (464) | (70) |
After-Tax Amount | |||
Unrealized net gains (losses) on investment securities available-for-sale | 11,914 | (6,052) | 2,385 |
Reclassification adjustment for net realized losses on investment securities available-for-sale | (680) | 1,391 | 111 |
Derivatives | |||
Pre-Tax Amount | |||
Unrealized net gains (losses) on derivatives | 4,843 | (1,254) | (1,187) |
Income Tax (Expense) Benefit | |||
Unrealized net gains (losses) on derivatives | (1,211) | 313 | 457 |
After-Tax Amount | |||
Other comprehensive income (loss), net of tax | $ 3,632 | $ (941) | $ (730) |
Earnings Per Common Share - Com
Earnings Per Common Share - Computation of Basic and Diluted Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Earnings Per Common Share | |||
Net income (loss) from continuing operations | $ 28,158 | $ 28,050 | $ (4,756) |
Net income from discontinued operations | 21,697 | 482 | 1,030 |
Net income (loss) available to common shareholders | $ 49,855 | $ 28,532 | $ (3,726) |
Weighted average shares outstanding | |||
Basic (in shares) | 23,315,562 | 25,947,038 | 25,592,731 |
Effect of dilutive securities: | |||
Stock options and performance share awards (in shares) | 162,439 | 164,717 | 229,354 |
Diluted (in shares) | 23,478,001 | 26,111,755 | 25,822,085 |
Net income (loss) per common share - basic | |||
Net income (loss) per common share - continuing operations (in dollars per share) | $ 1.21 | $ 1.08 | $ (0.19) |
Net income per common share - discontinued operations (in dollars per share) | 0.93 | 0.02 | 0.04 |
Net income (loss) per Common share ‑ basic (in dollars per share) | 2.14 | 1.10 | (0.15) |
Net income (loss) per common share - diluted | |||
Net income (loss) per common share - continuing operations (in dollars per share) | 1.20 | 1.07 | (0.19) |
Net income per common share - discontinued operations (in dollars per share) | 0.92 | 0.02 | 0.04 |
Net income (loss) per common share ‑ diluted (in dollars per share) | $ 2.12 | $ 1.09 | $ (0.15) |
Earnings Per Common Share - Nar
Earnings Per Common Share - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | 14 Months Ended | ||||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2019 | Nov. 14, 2018 | Mar. 24, 2015 | |
Earnings Per Common Share | ||||||
Antidilutive securities excluded (in shares) | 150 | 2,124 | 550 | |||
Capital shares, authorized (in shares) | 110,000,000 | |||||
Preferred stock authorized (in shares) | 10,000,000 | 10,000,000 | 10,000,000 | 10,000,000 | ||
Common stock authorized (in shares) | 100,000,000 | 100,000,000 | 100,000,000 | 100,000,000 | ||
Common stock issued (in shares) | 21,751,026 | 25,290,419 | 21,751,026 | |||
Common stock outstanding (in shares) | 21,751,026 | 25,290,419 | 21,751,026 | |||
Dividends paid | $ 45,500 | $ 30,000 | ||||
Authorized amount under stock repurchase program | $ 85,000 | |||||
Stock repurchased (in shares) | 3,694,902 | 822,100 | 4,500,000 | |||
Stock repurchased | $ 64,813 | $ 14,177 | $ 79,000 |
Income Taxes - Components of In
Income Taxes - Components of Income Tax Expense, Benefit (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Current income tax expense (benefit): | |||
Federal | $ (2,587) | $ 3,710 | $ (561) |
State | (183) | 371 | 35 |
Total | (2,770) | 4,081 | (526) |
Deferred income tax expense (benefit): | |||
Federal | 9,646 | (1,798) | 24,354 |
State | 735 | 4,024 | (113) |
Total | 10,381 | 2,226 | 24,241 |
Income Tax Expense (Benefit), Total | $ 7,611 | $ 6,307 | $ 23,715 |
Income Taxes - Effective Income
Income Taxes - Effective Income Tax Rate Reconciliation (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Effective Income Tax Rate Reconciliation, Amount [Abstract] | |||
Tax expense (benefit) based on federal statutory rate | $ 7,518 | $ 7,215 | $ 6,636 |
State taxes, net of federal benefit | 572 | 899 | 102 |
Income tax credits | (10) | (103) | (208) |
Tax-exempt earnings | (822) | (717) | (1,221) |
Excess benefit | 4 | (142) | (298) |
Nondeductible expenses | 135 | 116 | 361 |
Change in uncertain tax positions reserve | 137 | 56 | (109) |
Change in valuation allowance | (111) | (996) | (649) |
Revaluation of deferred tax asset excluding valuation allowance due to tax reform | 0 | 0 | 18,983 |
Other | 188 | (21) | 118 |
Income Tax Expense (Benefit), Total | $ 7,611 | $ 6,307 | $ 23,715 |
Income Taxes - Deferred Tax Ass
Income Taxes - Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Operating Loss Carryforwards [Line Items] | |||
Net operating loss carryforward | $ 15,743 | $ 25,992 | |
Allowance for loan losses | 4,545 | 4,374 | |
Stock-based compensation | 729 | 699 | |
Other real estate owned | 206 | 371 | |
Transaction costs | 152 | 787 | |
Deferred rent | 0 | 815 | |
Lease liability | 4,158 | ||
Nonaccrual loan interest | 509 | 530 | |
Net unrealized losses on investment securities available-for-sale | 2,950 | ||
Net unrealized losses on cash flow hedges | 486 | ||
Long term incentive plan | 204 | 471 | |
Other | 2,197 | 2,229 | |
Total gross deferred tax assets | 33,785 | 45,073 | |
Less: valuation allowance | (6,698) | (7,446) | $ (7,400) |
Net deferred tax asset | 27,087 | 37,627 | |
Depreciation | 626 | 1,215 | |
Deferred loan costs | 429 | 365 | |
Other | 301 | 192 | |
Right of use asset - leases | 2,944 | ||
Net unrealized gains on investment securities available‑for‑sale | 796 | ||
Net unrealized gains on cash flow hedges | 725 | ||
Total gross deferred tax liabilities | 5,821 | 1,772 | |
Net deferred tax assets | 21,266 | 35,855 | |
Domestic Tax Authority | |||
Operating Loss Carryforwards [Line Items] | |||
Tax credits | $ 5,342 | 5,342 | |
State and Local Jurisdiction | |||
Operating Loss Carryforwards [Line Items] | |||
Tax credits | $ 27 |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Details) - USD ($) | 3 Months Ended | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | ||||
Statutory corporate tax rate | 21.00% | 21.00% | 35.00% | |
Valuation allowance | $ 7,446,000 | $ 6,698,000 | $ 7,446,000 | $ 7,400,000 |
Unrecognized tax benefits that would impact effective tax rate | 357,000 | |||
Unrecognized tax benefits, interest on income taxes accrued | 51,000 | 65,000 | 51,000 | |
Income tax penalties and interest expense | 14,000 | $ 11,000 | $ 3,000 | |
Domestic Tax Authority | ||||
Operating Loss Carryforwards [Line Items] | ||||
Operating loss carryforwards | 50,200,000 | |||
State and Local Jurisdiction | ||||
Operating Loss Carryforwards [Line Items] | ||||
Operating loss carryforwards | 101,000,000 | |||
Limitations Under Section 382 of Internal Revenue Code | ||||
Operating Loss Carryforwards [Line Items] | ||||
Increase (decrease) in valuation allowance | $ 700,000,000,000 | |||
General Business Tax Credit Carryforward | ||||
Tax Credit Carryforward [Line Items] | ||||
Tax credit carryforward, amount | $ 5,300,000 |
Income Taxes - Unrecognized Tax
Income Taxes - Unrecognized Tax Benefits (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | ||
Balance at beginning of year | $ 278 | $ 216 |
Additions based on tax positions related to the current year | 174 | 62 |
Settlement of prior year positions | 0 | 0 |
Balance at end of year | $ 452 | $ 278 |
Employee and Director Benefit_3
Employee and Director Benefit Plans - Defined Contribution Plan (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Employee and Director Benefit Plans | |||
Defined Contribution Plan, starting deferral rate by employee per the plan's auto enrollment feature, percent | 1.00% | ||
Defined Contribution Plan, maximum deferral rate by employee, percent | 5.00% | ||
Defined Contribution Plan, Company matching contribution, percent of match | 100.00% | ||
Defined Contribution Plan, Company matching contribution, percent of employees' eligible compensation | 5.00% | ||
Defined contribution plan, employer discretionary contribution amount | $ 1.1 | $ 1.1 | $ 1 |
Employee and Director Benefit_4
Employee and Director Benefit Plans - Narrative (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Employee and Director Benefit Plans | |||
Weighted average remaining contractual term (in years) | 2 years 4 months 28 days | 3 years 11 months 23 days | 5 years 6 months 22 days |
Options granted in period (in shares) | 12,500 | 15,000 | 229,100 |
Fair value of vested shares | $ 208 | $ 307 | $ 1,800 |
Total incremental cost resulting from modifications | 31 | 111 | 709 |
Stock options and warrants | |||
Employee and Director Benefit Plans | |||
Compensation expense | 169 | 242 | 1,100 |
Unrecognized compensation cost | $ 59 | $ 308 | $ 646 |
Weighted-average period of recognition | 9 months 18 days | 1 year 10 months 24 days | 2 years 7 months 6 days |
Options modified during period (in shares) | 15,000 | ||
Restricted stock awards | |||
Employee and Director Benefit Plans | |||
Compensation expense | $ 1,300 | $ 1,500 | $ 1,300 |
Unrecognized compensation cost | $ 2,200 | $ 2,500 | $ 2,600 |
Weighted average remaining contractual term (in years) | 2 years 1 month 6 days | 2 years 4 months 24 days | 3 years |
Restricted stock awards granted (in shares) | 158,593 | 139,507 | 132,487 |
Granted/modified (dollars per share) | $ 19.19 | $ 19.79 | $ 17.83 |
Options modified during period (in shares) | 4,719 | 6,869 | 24,628 |
Restricted stock awards | Minimum | |||
Employee and Director Benefit Plans | |||
Award vesting period | 1 year | ||
Restricted stock awards | Maximum | |||
Employee and Director Benefit Plans | |||
Award vesting period | 3 years | ||
Employee Stock Option | |||
Employee and Director Benefit Plans | |||
Weighted average remaining contractual term (in years) | 2 years 4 months 24 days | ||
Options modified during period (in shares) | 12,500 | 15,000 | 229,100 |
Warrant | |||
Employee and Director Benefit Plans | |||
Warrants outstanding (in shares) | 0 | 0 | |
LTI Plan | |||
Employee and Director Benefit Plans | |||
Long-Term Incentive Plan bonus period (years) | 1 year | ||
Award vesting period | 3 years | 3 years | 3 years |
Compensation expense | $ 765 | $ 879 | $ 1,500 |
2015 Stock Incentive Plan | |||
Employee and Director Benefit Plans | |||
Award vesting period | 3 years | ||
Number of shares reserved for issuance | 4,525,000 | ||
Additional awards available to be granted (in shares) | 3,345,000 | ||
Expiration period | 10 years |
Employee and Director Benefit_5
Employee and Director Benefit Plans - Assumptions (Details) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Risk-free interest rate | 2.27% | ||
Expected stock price volatility | 26.80% | ||
Dividend yield | 0.00% | 0.00% | |
Minimum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Risk-free interest rate | 1.66% | 1.00% | |
Expected term in years | 1 year 8 months 23 days | 3 months | 3 months |
Expected stock price volatility | 24.20% | 23.20% | |
Maximum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Risk-free interest rate | 2.42% | ||
Expected term in years | 1 year 9 months 26 days | 8 years | |
Expected stock price volatility | 25.30% |
Employee and Director Benefit_6
Employee and Director Benefit Plans - Stock Option Activity (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Shares | |||
Outstanding, Beginning of period (in shares) | 442,454 | 757,711 | 1,485,704 |
Granted/modified (in shares) | 12,500 | 15,000 | 229,100 |
Exercised (in shares) | (90,330) | (310,016) | (724,912) |
Forfeited (in shares) | (38,500) | (19,935) | (231,546) |
Expired (in shares) | (7,144) | (306) | (635) |
Outstanding, End of period (in shares) | 318,980 | 442,454 | 757,711 |
Exercisable (in shares) | 308,980 | 396,454 | 662,016 |
Weighted Average Exercise Price | |||
Outstanding, Beginning of period (dollars per share) | $ 12.02 | $ 12.66 | $ 11.69 |
Granted/modified (dollars per share) | 10 | 14.64 | 13.53 |
Exercised (dollars per share) | 12.76 | 13.21 | 10.53 |
Forfeited (dollars per share) | 13.17 | 14.08 | 13.50 |
Expired (dollars per share) | 17.79 | 105.97 | 126.22 |
Outstanding, End of period (dollars per share) | 11.47 | 12.02 | 12.66 |
Exercisable (dollars per share) | $ 11.36 | $ 11.67 | $ 12.39 |
Weighted Average Remaining Contractual Term and Aggregate Intrinsic Value | |||
Outstanding, Weighted average remaining contractual term (in years) | 2 years 4 months 28 days | 3 years 11 months 23 days | 5 years 6 months 22 days |
Exercisable, Weighted average remaining contractual term (in years) | 2 years 3 months 18 days | 3 years 7 months 17 days | 5 years 2 months 27 days |
Outstanding, Aggregate intrinsic value | $ 2,203 | $ 1,990 | $ 3,883 |
Exercisable, Aggregate intrinsic value | $ 2,170 | $ 1,919 | $ 3,585 |
Weighted average fair value of options and warrants granted (dollars per share) | $ 8.07 | $ 2.79 | $ 7.15 |
Employee and Director Benefit_7
Employee and Director Benefit Plans - Restricted Stock Activity (Details) - Restricted stock awards - $ / shares | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Shares | |||
Outstanding, Beginning of period (in shares) | 272,695 | 239,468 | 259,165 |
Granted/modified (in shares) | 158,593 | 139,507 | 132,487 |
Vested (in shares) | (70,748) | (73,686) | (91,671) |
Forfeited (in shares) | (67,663) | (32,594) | (60,513) |
Outstanding, End of period (in shares) | 292,877 | 272,695 | 239,468 |
Weighted Average Grant-Date Fair Value | |||
Outstanding, Beginning of period (dollars per share) | $ 18.09 | $ 15.69 | $ 13.70 |
Granted/modified (dollars per share) | 19.19 | 19.79 | 17.83 |
Weighted average grant date fair value, vested (dollars per share) | 16.51 | 14.51 | 13.54 |
Forfeited (dollars per share) | 18.34 | 15.91 | 15.03 |
Outstanding, Ending of period (dollars per share) | $ 19 | $ 18.09 | $ 15.69 |
Derivatives and Hedging - Narra
Derivatives and Hedging - Narrative (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Derivative [Line Items] | ||
Notional Amount | $ 7,700,000 | $ 9,500,000 |
Expected reclassification to loan interest income | 271,000 | |
Collateral posted | 13,600,000 | 5,100,000 |
Derivatives not designated as hedging instruments under ASC 815 | Other assets | ||
Derivative [Line Items] | ||
Notional Amount | 119,325,000 | 138,145,000 |
Swap | Derivatives designated as hedging instruments under ASC 815 | ||
Derivative [Line Items] | ||
Notional Amount | 149,100,000 | 166,800,000 |
Swap | Derivatives not designated as hedging instruments under ASC 815 | ||
Derivative [Line Items] | ||
Notional Amount | 89,500,000 | 109,500,000 |
Swap | Derivatives not designated as hedging instruments under ASC 815 | Other assets | ||
Derivative [Line Items] | ||
Notional Amount | 44,763,000 | 54,760,000 |
Cash Flow Hedging | ||
Derivative [Line Items] | ||
Hedge ineffectiveness gains or losses recognized | 0 | 0 |
Cash Flow Hedging | Derivatives designated as hedging instruments under ASC 815 | LIBOR | ||
Derivative [Line Items] | ||
Notional Amount | 175,000,000 | $ 100,000,000 |
Cash Flow Hedging | Derivatives designated as hedging instruments under ASC 815 | Other assets | LIBOR | ||
Derivative [Line Items] | ||
Notional Amount | $ 125,000,000 |
Derivatives and Hedging (Deriva
Derivatives and Hedging (Derivative Contracts and Credit Risk Participation Agreements) (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Derivative [Line Items] | ||
Notional Amount | $ 7,700 | $ 9,500 |
Derivatives designated as hedging instruments under ASC 815 | Swap | ||
Derivative [Line Items] | ||
Notional Amount | 149,100 | 166,800 |
Derivatives designated as hedging instruments under ASC 815 | Cash Flow Hedging | LIBOR | ||
Derivative [Line Items] | ||
Notional Amount | 175,000 | 100,000 |
Derivatives not designated as hedging instruments under ASC 815 | Swap | ||
Derivative [Line Items] | ||
Notional Amount | 89,500 | 109,500 |
Other assets | Derivatives designated as hedging instruments under ASC 815 | Cash Flow Hedging | LIBOR | ||
Derivative [Line Items] | ||
Notional Amount | 125,000 | |
Fair Value | 3,578 | |
Other assets | Derivatives not designated as hedging instruments under ASC 815 | ||
Derivative [Line Items] | ||
Notional Amount | 119,325 | 138,145 |
Fair Value | 5,278 | 1,961 |
Other assets | Derivatives not designated as hedging instruments under ASC 815 | Swap | ||
Derivative [Line Items] | ||
Notional Amount | 44,763 | 54,760 |
Fair Value | 1,025 | 756 |
Other assets | Derivatives not designated as hedging instruments under ASC 815 | Zero premium collar | ||
Derivative [Line Items] | ||
Notional Amount | 74,562 | 83,385 |
Fair Value | 4,253 | 1,205 |
Other liabilities | Derivatives designated as hedging instruments under ASC 815 | Cash Flow Hedging | LIBOR | ||
Derivative [Line Items] | ||
Notional Amount | 50,000 | 100,000 |
Fair Value | 8 | 2,029 |
Other liabilities | Derivatives not designated as hedging instruments under ASC 815 | ||
Derivative [Line Items] | ||
Notional Amount | 126,982 | 147,677 |
Fair Value | 5,639 | 1,998 |
Other liabilities | Derivatives not designated as hedging instruments under ASC 815 | Swap | ||
Derivative [Line Items] | ||
Notional Amount | 44,763 | 54,760 |
Fair Value | 1,090 | 770 |
Other liabilities | Derivatives not designated as hedging instruments under ASC 815 | Dealer offset to zero premium collar | ||
Derivative [Line Items] | ||
Notional Amount | 74,562 | 83,385 |
Fair Value | 4,545 | 1,226 |
Other liabilities | Derivatives not designated as hedging instruments under ASC 815 | Credit risk participation | ||
Derivative [Line Items] | ||
Notional Amount | 7,657 | 9,532 |
Fair Value | $ 4 | $ 2 |
Derivatives and Hedging (Impact
Derivatives and Hedging (Impact to Consolidated Statements of Income Related to Derivative Contracts) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Cash Flow Hedging | Interest rate swaps | ||
Derivative [Line Items] | ||
Amount of Gain or (Loss) Recognized in OCI on Derivatives (Effective Portion) | $ 4,487 | $ (1,229) |
Gain or (Loss) Reclassified from Accumulated OCI in Income (Effective Portion) | (356) | 26 |
Derivatives not designated as hedging instruments under ASC 815 | ||
Derivative [Line Items] | ||
Amount of Gain or (Loss) Recognized in OCI on Derivatives (Effective Portion) | (322) | 81 |
Derivatives not designated as hedging instruments under ASC 815 | Other income / (expense) | Interest rate products | ||
Derivative [Line Items] | ||
Amount of Gain or (Loss) Recognized in OCI on Derivatives (Effective Portion) | (321) | 79 |
Derivatives not designated as hedging instruments under ASC 815 | Other income / (expense) | Other contracts | ||
Derivative [Line Items] | ||
Amount of Gain or (Loss) Recognized in OCI on Derivatives (Effective Portion) | $ (1) | 2 |
Derivatives not designated as hedging instruments under ASC 815 | Other income / (expense) | Fee income | ||
Derivative [Line Items] | ||
Amount of Gain or (Loss) Recognized in OCI on Derivatives (Effective Portion) | $ 227 |
Regulatory Matters (Details)
Regulatory Matters (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||
Common equity tier one | $ 285,456 | $ 285,250 |
Common equity tier one weighted assets | 12.00% | 11.50% |
Common equity tier one capital required for capital adequacy | $ 106,740 | $ 112,033 |
Common equity tier one capital required for capital adequacy to risk weighted assets | 4.50% | 4.50% |
Tier one risk based capital | $ 285,456 | $ 285,250 |
Tier one risk based capital to risk weighted assets | 12.00% | 11.50% |
Tier one risk based capital required for capital adequacy | $ 189,760 | $ 149,378 |
Tier one risk based capital required for capital adequacy to risk weighted assets | 8.00% | 6.00% |
Capital | $ 354,757 | $ 353,458 |
Capital to risk weighted assets | 15.00% | 14.20% |
Capital required for capital adequacy | $ 142,320 | $ 199,170 |
Capital required for capital adequacy to risk weighted assets | 6.00% | 8.00% |
Tier one leverage capital | $ 285,456 | $ 285,250 |
Tier one leverage capital to average assets | 11.00% | 10.00% |
Tier one leverage capital required for capital adequacy | $ 103,596 | $ 113,705 |
Tier one leverage capital required for capital adequacy to average assets | 4.00% | 4.00% |
Bank | ||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||
Common equity tier one | $ 327,426 | $ 304,907 |
Common equity tier one weighted assets | 13.80% | 12.30% |
Common equity tier one capital required for capital adequacy | $ 106,698 | $ 112,022 |
Common equity tier one capital required for capital adequacy to risk weighted assets | 4.50% | 4.50% |
Common equity tier one to be well capitalized | $ 154,119 | $ 161,809 |
Common equity tier one capital risk weighted assets to be well capitalized | 6.50% | 6.50% |
Tier one risk based capital | $ 327,426 | $ 304,907 |
Tier one risk based capital to risk weighted assets | 13.80% | 12.30% |
Tier one risk based capital required for capital adequacy | $ 189,685 | $ 149,362 |
Tier one risk based capital required for capital adequacy to risk weighted assets | 8.00% | 6.00% |
Tier one risk based capital required to be well capitalized | $ 237,107 | $ 199,150 |
Tier one risk based capital required to be well capitalized to risk weighted assets | 10.00% | 8.00% |
Capital | $ 346,854 | $ 323,411 |
Capital to risk weighted assets | 14.60% | 13.00% |
Capital required for capital adequacy | $ 142,264 | $ 199,150 |
Capital required for capital adequacy to risk weighted assets | 6.00% | 8.00% |
Capital required to be well capitalized | $ 189,685 | $ 248,937 |
Capital required to be well capitalized to risk weighted assets | 8.00% | 10.00% |
Tier one leverage capital | $ 327,426 | $ 304,907 |
Tier one leverage capital to average assets | 12.70% | 10.60% |
Tier one leverage capital required for capital adequacy | $ 103,425 | $ 114,574 |
Tier one leverage capital required for capital adequacy to average assets | 4.00% | 4.00% |
Tier one leverage capital required to be well capitalized | $ 129,281 | $ 143,218 |
Tier one leverage capital required to be well capitalized to average assets | 5.00% | 5.00% |
Fair Value Measurements (Detail
Fair Value Measurements (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Fair Value Measurements | ||
Fair value of assets from Level 1 to Level 2 | $ 0 | $ 0 |
Fair value assets from Level 2 to Level 1 | 0 | 0 |
Fair value liabilities from Level 1 to Level 2 | 0 | 0 |
Fair value liabilities from Level 2 to Level 1 | 0 | 0 |
Fair value of inputs from reconciliation of recurring assets | 0 | 0 |
Fair value of inputs from reconciliation of recurring liabilities | $ 0 | $ 0 |
Fair Value Measurements - Fair
Fair Value Measurements - Fair Value Measurements Recurring (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total securities available-for-sale | $ 282,461 | $ 402,486 |
Interest rate derivative assets | 8,856 | 1,961 |
Interest rate derivative liabilities | 5,647 | 4,027 |
Fair Value | Fair value, measurements, recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total securities available-for-sale | 282,461 | 402,486 |
Interest rate derivative assets | 8,856 | 1,961 |
Interest rate derivative liabilities | 5,647 | 4,027 |
Fair Value | Fair value, measurements, recurring | Quoted Prices in Active Markets for Identical Securities (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total securities available-for-sale | 0 | 0 |
Interest rate derivative assets | 0 | 0 |
Interest rate derivative liabilities | 0 | 0 |
Fair Value | Fair value, measurements, recurring | Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total securities available-for-sale | 282,461 | 402,486 |
Interest rate derivative assets | 8,856 | 1,961 |
Interest rate derivative liabilities | 5,647 | 4,027 |
Fair Value | Fair value, measurements, recurring | Significant Unobservable Inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total securities available-for-sale | 0 | 0 |
Interest rate derivative assets | 0 | 0 |
Interest rate derivative liabilities | 0 | 0 |
Fair Value | U.S. government agencies | Fair value, measurements, recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total securities available-for-sale | 26,849 | |
Fair Value | U.S. government agencies | Fair value, measurements, recurring | Quoted Prices in Active Markets for Identical Securities (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total securities available-for-sale | 0 | |
Fair Value | U.S. government agencies | Fair value, measurements, recurring | Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total securities available-for-sale | 26,849 | |
Fair Value | U.S. government agencies | Fair value, measurements, recurring | Significant Unobservable Inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total securities available-for-sale | 0 | |
Fair Value | U.S. states and political divisions | Fair value, measurements, recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total securities available-for-sale | 82,485 | 84,834 |
Fair Value | U.S. states and political divisions | Fair value, measurements, recurring | Quoted Prices in Active Markets for Identical Securities (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total securities available-for-sale | 0 | 0 |
Fair Value | U.S. states and political divisions | Fair value, measurements, recurring | Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total securities available-for-sale | 82,485 | 84,834 |
Fair Value | U.S. states and political divisions | Fair value, measurements, recurring | Significant Unobservable Inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total securities available-for-sale | 0 | 0 |
Fair Value | Trust preferred securities | Fair value, measurements, recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total securities available-for-sale | 4,688 | 4,400 |
Fair Value | Trust preferred securities | Fair value, measurements, recurring | Quoted Prices in Active Markets for Identical Securities (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total securities available-for-sale | 0 | 0 |
Fair Value | Trust preferred securities | Fair value, measurements, recurring | Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total securities available-for-sale | 4,688 | 4,400 |
Fair Value | Trust preferred securities | Fair value, measurements, recurring | Significant Unobservable Inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total securities available-for-sale | 0 | 0 |
Fair Value | Corporate debt securities | Fair value, measurements, recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total securities available-for-sale | 19,920 | 12,363 |
Fair Value | Corporate debt securities | Fair value, measurements, recurring | Quoted Prices in Active Markets for Identical Securities (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total securities available-for-sale | 0 | 0 |
Fair Value | Corporate debt securities | Fair value, measurements, recurring | Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total securities available-for-sale | 19,920 | 12,363 |
Fair Value | Corporate debt securities | Fair value, measurements, recurring | Significant Unobservable Inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total securities available-for-sale | 0 | 0 |
Fair Value | Mortgage-backed securities | Fair value, measurements, recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total securities available-for-sale | 175,368 | 274,040 |
Fair Value | Mortgage-backed securities | Fair value, measurements, recurring | Quoted Prices in Active Markets for Identical Securities (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total securities available-for-sale | 0 | 0 |
Fair Value | Mortgage-backed securities | Fair value, measurements, recurring | Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total securities available-for-sale | 175,368 | 274,040 |
Fair Value | Mortgage-backed securities | Fair value, measurements, recurring | Significant Unobservable Inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total securities available-for-sale | $ 0 | $ 0 |
Fair Value Measurements - Fai_2
Fair Value Measurements - Fair Value Measurements Nonrecurring (Details) - Impaired Loans - Fair Value - Fair value, measurements, nonrecurring - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets | $ 4,288 | $ 1,836 |
Quoted Prices in Active Markets for Identical Securities (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets | 0 | 0 |
Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets | 0 | 0 |
Significant Unobservable Inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets | $ 4,288 | $ 1,836 |
Fair Value Measurements - Estim
Fair Value Measurements - Estimated Fair Value and Carrying Value Summary (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | |
Financial assets | |||
Cash and due from banks | [1] | $ 45,249 | $ 42,895 |
Interest bearing deposits in banks | 421,079 | 216,040 | |
Other short-term investments | 0 | 9,457 | |
Total securities available-for-sale | 282,461 | 402,486 | |
Total securities held to maturity | 116,972 | 0 | |
Loans held for investment, net | 1,854,989 | 1,710,222 | |
Federal Home Loan Bank borrowings | 0 | 0 | |
Loans held for sale - discontinued operations | [1] | 0 | 373,030 |
Derivative assets | 8,856 | 1,961 | |
Financial liabilities | |||
Deposits to be assumed - discontinued operations | [1] | 0 | 585,429 |
Securities sold under agreements to repurchase - discontinued operations | [1] | 0 | 6,220 |
Subordinated debt | 49,873 | 49,704 | |
Derivative financial instruments | 5,647 | 4,027 | |
Fair value, measurements, recurring | Carrying Value | |||
Financial assets | |||
Cash and due from banks | 45,249 | 42,895 | |
Interest bearing deposits in banks | 421,079 | 216,040 | |
Other short-term investments | 9,457 | ||
Total securities available-for-sale | 282,461 | 402,486 | |
Total securities held to maturity | 116,972 | ||
FHLB stock | 2,680 | 2,622 | |
Federal Reserve Bank stock | 9,998 | 9,906 | |
Loans held for investment, net | 1,873,524 | 1,710,222 | |
Loans held for sale - discontinued operations | 373,030 | ||
Derivative assets | 8,856 | 1,961 | |
Financial liabilities | |||
Deposits | 2,499,046 | 1,952,514 | |
Deposits to be assumed - discontinued operations | 585,429 | ||
Securities sold under agreements to repurchase - discontinued operations | 6,220 | ||
Subordinated debt | 49,873 | 49,704 | |
Loans held for sale | 370 | 5,889 | |
Derivative financial instruments | 5,647 | 4,027 | |
Fair value, measurements, recurring | Fair Value | |||
Financial assets | |||
Total securities available-for-sale | 282,461 | 402,486 | |
Derivative assets | 8,856 | 1,961 | |
Financial liabilities | |||
Derivative financial instruments | 5,647 | 4,027 | |
Fair value, measurements, recurring | Fair Value | Quoted Prices in Active Markets for Identical Securities (Level 1) | |||
Financial assets | |||
Cash and due from banks | 45,249 | 42,895 | |
Interest bearing deposits in banks | 421,079 | 216,040 | |
Other short-term investments | 9,457 | ||
Total securities available-for-sale | 0 | 0 | |
Total securities held to maturity | 0 | ||
FHLB stock | 0 | 0 | |
Federal Reserve Bank stock | 0 | 0 | |
Loans held for investment, net | 0 | 0 | |
Loans held for sale - discontinued operations | 0 | ||
Derivative assets | 0 | 0 | |
Financial liabilities | |||
Deposits | 0 | 0 | |
Deposits to be assumed - discontinued operations | 0 | ||
Securities sold under agreements to repurchase - discontinued operations | 6,220 | ||
Subordinated debt | 0 | 0 | |
Loans held for sale | 0 | 0 | |
Derivative financial instruments | 0 | 0 | |
Fair value, measurements, recurring | Fair Value | Significant Other Observable Inputs (Level 2) | |||
Financial assets | |||
Cash and due from banks | 0 | 0 | |
Interest bearing deposits in banks | 0 | 0 | |
Other short-term investments | 0 | ||
Total securities available-for-sale | 282,461 | 402,486 | |
Total securities held to maturity | 115,291 | ||
FHLB stock | 0 | 0 | |
Federal Reserve Bank stock | 0 | 0 | |
Loans held for investment, net | 0 | 0 | |
Loans held for sale - discontinued operations | 373,030 | ||
Derivative assets | 8,856 | 1,961 | |
Financial liabilities | |||
Deposits | 2,421,957 | 1,830,673 | |
Deposits to be assumed - discontinued operations | 585,429 | ||
Securities sold under agreements to repurchase - discontinued operations | 0 | ||
Subordinated debt | 50,081 | 48,960 | |
Loans held for sale | 370 | 5,889 | |
Derivative financial instruments | 5,647 | 4,027 | |
Fair value, measurements, recurring | Fair Value | Significant Unobservable Inputs (Level 3) | |||
Financial assets | |||
Cash and due from banks | 0 | 0 | |
Interest bearing deposits in banks | 0 | 0 | |
Other short-term investments | 0 | ||
Total securities available-for-sale | 0 | 0 | |
Total securities held to maturity | 0 | ||
FHLB stock | 2,680 | 2,622 | |
Federal Reserve Bank stock | 9,998 | 9,906 | |
Loans held for investment, net | 1,890,258 | 1,740,438 | |
Loans held for sale - discontinued operations | 0 | ||
Derivative assets | 0 | 0 | |
Financial liabilities | |||
Deposits | 0 | 0 | |
Deposits to be assumed - discontinued operations | 0 | ||
Securities sold under agreements to repurchase - discontinued operations | 0 | ||
Subordinated debt | 0 | 0 | |
Loans held for sale | 0 | 0 | |
Derivative financial instruments | $ 0 | $ 0 | |
[1] | Assets and liabilities related to the sale of Tennessee and northwest Georgia banking operations were classified as held for sale as of December 31, 2018. |
Commitments and Contingencies_2
Commitments and Contingencies (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Loss Contingencies [Line Items] | ||
Financial Instruments whose contract amount represents credit risk | $ 743,958 | $ 731,241 |
Minimum lease payments under Topic 842 | 20,055 | |
Minimum lease payments under Topic 840 | 22,014 | |
Commitments to extend credit | ||
Loss Contingencies [Line Items] | ||
Financial Instruments whose contract amount represents credit risk | 735,905 | 715,591 |
Standby letters of credit | ||
Loss Contingencies [Line Items] | ||
Financial Instruments whose contract amount represents credit risk | 8,053 | 15,650 |
SBIC Investments | ||
Loss Contingencies [Line Items] | ||
Commitments related to investments in SBICs | $ 2,400 | $ 3,200 |
Letter of Credit | ||
Loss Contingencies [Line Items] | ||
Credit facility, expiration period (less than) | 1 year |
Revenue Recognition (Details)
Revenue Recognition (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Disaggregation of Revenue [Line Items] | |||
Cumulative effect adjustment to retained earnings | $ 91,669,000 | $ 42,187,000 | |
Deposit account analysis fees and charges | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from contract with customer | 2,630,000 | 2,166,000 | $ 1,785,000 |
ATM fees | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from contract with customer | 58,000 | 223,000 | 234,000 |
NSF fees | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from contract with customer | 57,000 | 97,000 | 74,000 |
Wire fees | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from contract with customer | 483,000 | 426,000 | 356,000 |
Foreign exchange fees | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from contract with customer | 352,000 | 288,000 | 258,000 |
Other | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from contract with customer | 7,000 | 15,000 | 27,000 |
Total service charges | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from contract with customer | 4,114,000 | 5,137,000 | 5,076,000 |
Service charges - continuing operations | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from contract with customer | 3,587,000 | 3,215,000 | 2,734,000 |
Service charges - discontinued operations | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from contract with customer | 527,000 | 1,922,000 | 2,342,000 |
Personal trust and agency accounts | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from contract with customer | 615,000 | 1,012,000 | |
Employee benefit and retirement-related trust and agency accounts | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from contract with customer | 120,000 | 225,000 | |
Investment management and investment advisory agency accounts | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from contract with customer | 216,000 | 355,000 | |
Custody and safekeeping accounts | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from contract with customer | 26,000 | 68,000 | |
Other | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from contract with customer | 48,000 | 154,000 | |
Total trust Income | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from contract with customer | $ 1,025,000 | $ 1,814,000 | |
Difference between Revenue Guidance in Effect before and after Topic 606 | ASU 2014-09 | Pro Forma | |||
Disaggregation of Revenue [Line Items] | |||
Cumulative effect adjustment to retained earnings | $ 1,000 |
Atlantic Capital Bancshares, _3
Atlantic Capital Bancshares, Inc. (Parent Company Only) Financial Information - Balance Sheets (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
ASSETS | ||||
Other assets | $ 49,516 | $ 56,583 | ||
Total assets | 2,910,379 | 2,955,440 | ||
LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||
Long-term debt | 49,873 | 49,704 | ||
Other liabilities | 34,965 | 37,920 | ||
Total liabilities | 2,583,884 | 2,631,787 | ||
Shareholders’ equity: | ||||
Common stock | 230,265 | 291,771 | ||
Retained earnings | 91,669 | 42,187 | ||
Accumulated other comprehensive income (loss) | 4,561 | (10,305) | ||
Total shareholders’ equity | 326,495 | 323,653 | $ 308,425 | $ 303,658 |
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY | 2,910,379 | 2,955,440 | ||
Parent Company | ||||
ASSETS | ||||
Cash | 7,752 | 30,568 | ||
Investment in subsidiary | 368,465 | 343,311 | ||
Other assets | 938 | 260 | ||
Total assets | 377,155 | 374,139 | ||
LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||
Long-term debt | 49,873 | 49,704 | ||
Other liabilities | 787 | 782 | ||
Total liabilities | 50,660 | 50,486 | ||
Shareholders’ equity: | ||||
Common stock | 230,265 | 291,771 | ||
Retained earnings | 91,669 | 42,187 | ||
Accumulated other comprehensive income (loss) | 4,561 | (10,305) | ||
Total shareholders’ equity | 326,495 | 323,653 | ||
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY | $ 377,155 | $ 374,139 |
Atlantic Capital Bancshares, _4
Atlantic Capital Bancshares, Inc. (Parent Company Only) Financial Information - Statements of Operations (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income: | |||
Total interest income | $ 105,847 | $ 94,760 | $ 75,818 |
Expense: | |||
Interest on long-term debt | 3,295 | 3,304 | 3,294 |
INCOME FROM CONTINUING OPERATIONS BEFORE PROVISION FOR INCOME TAXES | 35,769 | 34,357 | 18,959 |
Income tax benefit | 7,611 | 6,307 | 23,715 |
NET INCOME (LOSS) | 49,855 | 28,532 | (3,726) |
Parent Company | |||
Income: | |||
Interest income | 381 | 197 | |
Total interest income | 381 | 197 | |
Expense: | |||
Interest on long-term debt | 3,294 | 3,304 | 3,294 |
Other expense | 1,231 | 1,134 | 1,113 |
Total expense | 4,525 | 4,438 | 4,407 |
INCOME FROM CONTINUING OPERATIONS BEFORE PROVISION FOR INCOME TAXES | (4,525) | (4,057) | (4,210) |
Income tax benefit | (1,217) | (1,091) | (1,681) |
Loss before equity in undistributed (losses) earnings of subsidiary | (3,308) | (2,966) | (2,529) |
Equity in undistributed (losses) earnings of subsidiary | 53,163 | 31,498 | (1,197) |
NET INCOME (LOSS) | $ 49,855 | $ 28,532 | $ (3,726) |
Atlantic Capital Bancshares, _5
Atlantic Capital Bancshares, Inc. (Parent Company Only) Financial Information - Statement of Cash Flows (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
OPERATING ACTIVITIES | |||
Net income | $ 49,855 | $ 28,532 | $ (3,726) |
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | |||
Decrease (increase) in other assets | (2,385) | 6,511 | (8,217) |
Net cash provided by operating activities | 82,578 | 97,584 | 85,184 |
INVESTING ACTIVITIES | |||
Net cash (used in) investing activities | (374,074) | (197,623) | (95,111) |
FINANCING ACTIVITIES | |||
Proceeds from exercise of stock options | 1,153 | 4,096 | 3,567 |
Repurchase of common stock | (64,813) | (14,177) | 0 |
Net cash (provided by) financing activities | 489,432 | 38,417 | 174,216 |
NET CHANGE IN CASH AND CASH EQUIVALENTS | 197,936 | (61,622) | 164,289 |
CASH AND CASH EQUIVALENTS – beginning of period | 268,392 | 330,014 | 165,725 |
CASH AND CASH EQUIVALENTS – end of period | 466,328 | 268,392 | 330,014 |
Parent Company | |||
OPERATING ACTIVITIES | |||
Net income | 49,855 | 28,532 | (3,726) |
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | |||
Equity in undistributed earnings of subsidiary | (53,163) | (31,498) | 1,197 |
Decrease (increase) in other assets | (1,521) | (705) | (1,264) |
(Decrease) increase in other liabilities | 173 | 169 | (1,354) |
Net cash provided by operating activities | (4,656) | (3,502) | (5,147) |
INVESTING ACTIVITIES | |||
Net cash (used in) investing activities | 0 | 0 | 0 |
FINANCING ACTIVITIES | |||
Proceeds from exercise of stock options | 1,154 | 4,096 | 3,567 |
Cash dividends received | 45,500 | 30,000 | 0 |
Repurchase of common stock | (64,814) | (14,177) | 0 |
Net cash (provided by) financing activities | (18,160) | 19,919 | 3,567 |
NET CHANGE IN CASH AND CASH EQUIVALENTS | (22,816) | 16,417 | (1,580) |
CASH AND CASH EQUIVALENTS – beginning of period | 30,568 | 14,151 | 15,731 |
CASH AND CASH EQUIVALENTS – end of period | $ 7,752 | $ 30,568 | $ 14,151 |