 ATLANTA, July 23, 2020 GLOBE NEWSWIRE -- Atlantic Capital Bancshares, Inc. NASDAQ: ACBI announced net income from continuing operations for the quarter ended June 30, 2020 of 1.8 million, or 0.09 per diluted share, compared to 7.0 million, or 0.29 per diluted share, for the second quarter of 2019 and 2.1 million, or 0.10 per diluted share, for the first quarter of 2020. With solid growth in loans and deposits, a significant decline in deposit costs, and disciplined expense management, Atlantic Capital grew earnings before taxes and provision for potential credit losses at a strong pace from the first quarter of 2020 and from the second quarter of 2019. These solid operating results, along with another substantial addition to the allowance for credit losses, further buttress Atlantic Capitals fortress balance sheet for the uncertain economic environment ahead. As the second quarter progressed, our borrowers generally reported improved business results and are cautiously optimistic about the remainder of 2020, remarked Douglas Williams, President and Chief Executive Officer.Second Quarter Highlights1 Capital ratios remained strong, with a tangible common equity to tangible assets ratio of 11.0 and total risk-based capital ratio of 14.8. Tangible book value per share increased to 14.72 from 14.54 at March 31, 2020. Total loans held for investment increased 251.8 million, or 52.1 annualized, from March 31, 2020. Included in the increase are 234 million in SBA Paycheck Protection Program PPP loans. Average deposits from continuing operations increased 155.4 million, or 27.6 annualized, compared to the first quarter of 2020. Cost of deposits from continuing operations decreased to 0.22 from 0.75 in the first quarter of 2020. Efficiency ratio improved to 53.8 compared to 55.0 in the first quarter of 2020. Allowance for credit losses increased to 1.61 of loans held for investment compared to 1.43 at March 31, 2020. Excluding the impact of PPP loans, the allowance for credit losses at June 30, 2020 was 1.80 of total loans held for investment.Income StatementTaxable equivalent net interest income from continuing operations totaled 22.0 million for the second quarter of 2020, an increase of 2.0 million, or 10.1, from the second quarter of 2019, and an increase of 782,000, or 14.8 annualized, from the first quarter of 2020. The linked quarter increase in net interest income was primarily driven by the addition of the PPP loans during the second quarter.Taxable equivalent net interest margin from continuing operations was 3.23 in the second quarter of 2020, a decrease of 38 basis points from the second quarter of 2019 and a decrease of 18 basis points from the first quarter of 2020. The linked quarter decrease was primarily the result of a decrease in loan yields and the addition of the lower yielding PPP loans, partially offset by a decrease in the cost of interest bearing deposits. The PPP loans had an adverse impact of approximately 14 basis points on the net interest margin for the second quarter of 2020.The yield on loans from continuing operations in the second quarter of 2020 was 3.87, a decrease of 147 basis points from the second quarter of 2019 and a decrease of 90 basis points from the first quarter of 2020. The decrease in loan yields was due primarily to the repricing of variable rate loans from declines in short term interest rates and the addition of lower yielding PPP loans. The PPP loans had an adverse impact of approximately 22 basis points on loan yields for the second quarter of 2020.The cost of deposits from continuing operations in the second quarter of 2020 was 0.22, a decrease of 93 basis points from the second quarter of 2019 and a decrease of 53 basis points from the first quarter of 2020. The cost of interest bearing deposits from continuing operations decreased 133 basis points to 0.33 from the second quarter of 2019, and decreased 76 basis points from the first quarter of 2020.1 Commentary is on a fully taxable-equivalent basis unless otherwise noted. Consistent with SEC guidance in Industry Guide 3 that contemplates the calculation of tax-exempt income on a tax equivalent basis, net interest income and net interest margin are provided on a fully taxable-equivalent basis, which generally assumes a 21 marginal tax rate. We provide detailed reconciliations in the Non-GAAP Performance and Financial Measures Reconciliation table on page 13.The provision for credit losses for continuing operations was 8.9 million in the second quarter of 2020 compared to 698,000 in the second quarter of 2019 and 8.1 million in the first quarter of 2020. The provision for credit losses in the second quarter of 2020 included an 8.2 million provision for loan losses and a 642,000 provision for unfunded commitments. Annualized net charge-offs were 0.29 of average loans in the second quarter of 2020 and 0.17 for the first six months of 2020.Noninterest income from continuing operations totaled 2.3 million in the second quarter of 2020 compared to 2.9 million in the second quarter of 2019 and 2.4 million in the first quarter of 2020. Service charge income in the second quarter of 2020 totaled 1.1 million, an increase of 211,000 compared to the second quarter of 2019 and a decrease of 151,000 from the first quarter of 2020. The linked-quarter decrease in service charge income was primarily due to the COVID-19 related impact on ACH volumes in our payments business. SBA income totaled 768,000, a decrease from 1.10 million in the second quarter of 2019 and an increase from 414,000 in the first quarter of 2020, primarily from an increase in loans sold during the second quarter of 2020.Noninterest expense from continuing operations totaled 12.9 million in the second quarter of 2020, a decrease of 350,000 compared to the second quarter of 2019 and unchanged compared to the first quarter of 2020. Salaries and employee benefits totaled 8.5 million in the second quarter of 2020, unchanged from the previous quarter as the seasonal decrease in first quarter benefits costs were offset by higher salaries and an increase in incentive accruals. Approximately 293,000 in incentive expense was incurred in the second quarter of 2020 related to COVID-19 pay for employees.The year-to-date 2020 effective tax rate from continuing operations was 14.7 compared to 21.3 for the full year of 2019, and was impacted by lower pretax earnings as well as increased non-taxable securities income from municipal bonds.Balance SheetTotal loans held for investment were 2.18 billion at June 30, 2020, an increase of 395.0 million, or 22.0, from June 30, 2019 and an increase of 251.8 million, or 52.1 annualized, from March 31, 2020. Excluding the 234.0 million in PPP loans funded during the second quarter of 2020, loans held for investment increased 17.7 million, or 3.7 annualized. Consumer loans increased 55.0 million from March 31, 2020 to 113.1 million at June 30, 2020, due to the growth in a partnership with a fintech firm that offers CD-secured loans to its customers.The allowance for credit losses was 1.61 of total loans held for investment at June 30, 2020, compared to 1.43 at March 31, 2020. Excluding the impact of PPP loans, the allowance for credit losses at June 30, 2020 was 1.80 of total loans held for investment. Non-performing assets totaled 7.2 million, or 0.25 of total assets, as of June 30, 2020, compared to 7.3 million, or 0.27 of total assets, as of March 31, 2020.Total average deposits from continuing operations were 2.41 billion for the second quarter of 2020, an increase of 507.9 million, or 26.7, from the second quarter of 2019 and an increase of 155.5 million, or 27.6 annualized, from the first quarter of 2020. Noninterest bearing deposits were 33.8 of total average deposits from continuing operations in the second quarter of 2020, compared to 30.9 in the second quarter of 2019 and 31.6 in the first quarter of 2020.Tangible common equity to tangible assets was 11.0 at June 30, 2020, a decrease from 11.6 at March 31, 2020 due to the increase in PPP loans in the second quarter. The estimated total risk based capital ratio was 14.8 at June 30, 2020 compared to 16.5 at June 30, 2019 and 14.9 at March 31, 2020.Earnings Conference CallThe Company will host a conference call at 9:00 a.m. EST on Friday, July 24, 2020, to discuss the financial results for the quarter ended June 30, 2020. Individuals wishing to participate in the conference call may do so by dialing 877-270-2148 from the United States. The call will also be available live via webcast on the Investor Relations page of the Companys website, A presentation will be used during the earnings conference call and is available at Financial MeasuresStatements included in this press release include non-GAAP financial measures and should be read along with the accompanying tables, which provide a reconciliation of non-GAAP financial measures to GAAP financial measures. Atlantic Capital management uses non-GAAP financial measures, including: i taxable equivalent interest income; ii taxable equivalent netinterest income; iii taxable equivalent net interest margin; iv taxable equivalent income before income taxes; v taxable equivalent income tax expense; vi tangible assets; vii tangible common equity; viii tangible book value per common share; and ix allowance for loan losses to loans held for investment excluding PPP loans, in its analysis of the Companys performance. Tangible common equity excludes goodwill and other intangible assets from shareholders equity. 