Atlantic Capital Bancshares, Inc. (NASDAQ:ACBI) Files An 8-K Other EventsItem 8.01. Other Events.
Atlantic Capital Bancshares, Inc. (the “Company”) has concluded that certain provisions of the tax reform legislation signed into law on December 22, 2017, which among other items reduces the federal corporate tax rate to 21%, will cause the Company’s net deferred tax asset to be revalued. The Company’s net deferred tax asset represents net operating loss carryforwards that will be used to reduce corporate taxes expected to be paid in the future as well as differences between the carrying amounts and tax basis of assets and liabilities carried on the Company’s balance sheet. The Company has performed an analysis to determine the impact of the revaluation of the deferred tax asset. The Company estimates that the value of the deferred tax asset will be reduced by a range of approximately $17 to $20 million. The estimated impact of the revaluation on the Company’s fourth quarter earnings would be approximately ($0.66) to ($0.77) per share and the estimated impact of the revaluation on the Company’s tangible book value would be approximately ($0.66) to ($0.78) per share.
The Company’s revaluation of its net deferred tax asset may be subject to further adjustments, based on clarifications of the recent legislation, that cannot be estimated at this time. As such, the Company is unable to make a final determination of the impact on the quarterly and fiscal year earnings for the period ending December 31, 2017 at this time.
To the extent required, the Company may file one or more amendments to this Current Report on Form 8-K.
Forward-Looking Statements
This Current Report on Form 8-K contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements represent plans, estimates, objectives, goals, guidelines, expectations, intentions, projections and statements of our beliefs concerning future events, business plans, objectives, expected operating results and the assumptions upon which those statements are based. Forward-looking statements include without limitation, any statement that may predict, forecast, indicate or imply future results, performance or achievements, and are typically identified with words such as “may,” “could,” “should,” “will,” “would,” “believe,” “anticipate,” “estimate,” “project,” “expect,” “intend,” “plan,” or words or phases of similar meaning. Forward-looking statements may include, among other things, statements about the Company’s confidence in its strategies and its expectations about financial performance, market growth, market and regulatory trends and developments, acquisitions and divestitures, new technologies, services and opportunities and earnings. The forward-looking statements are based largely on the Company’s expectations and are subject to a number of known and unknown risks and uncertainties that are subject to change based on factors which are, in many instances, beyond the Company’s control. The Company undertakes no obligation to publicly update any forward-looking statement to reflect developments occurring after the statement is made, except as otherwise required by law. Actual results, performance or achievements could differ materially from those contemplated, expressed, or implied by the forward-looking statements as a result of, among other factors, the risks and uncertainties described in “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in the Company’s Annual Report on Form 10-K and Quarterly Reports on Form 10-Q.
About Atlantic Capital Bancshares, Inc. (NASDAQ:ACBI)
Atlantic Capital Bancshares, Inc. is the bank holding company for Atlantic Capital Bank (the Bank). The Bank operates as a full service, locally-managed commercial bank. The Bank provides an array of credit, treasury management and deposit products and services to growth businesses, middle market corporations, commercial real estate developers and investors, and private clients. Its wealth management division offers financial planning, trust administration, investment management, brokerage and estate planning services. It also provides selected capital markets, mortgage banking, and electronic banking services to its corporate, business and individual clients. Its private banking credit products include loans to individuals for personal and investment purposes, such as secured installment and term loans, and home equity lines of credit. Its specialty corporate financial services include payments industry banking, financial institutions banking and capital markets services.