ATLANTA, Jan. 29, 2018 (GLOBE NEWSWIRE) -- Atlantic Capital Bancshares, Inc. (NASDAQ:ACBI) announced a loss of $15.3 million, or ($0.59) per diluted share for the fourth quarter of 2017, compared to net income of $4.0 million, or $0.16 per diluted share, in the third quarter of 2017. The tax reform legislation signed into law on December 22, 2017 resulted in a reduction of the value of our deferred tax asset and an increase in tax expense of $17.4 million, or ($0.67) per diluted share, in the fourth quarter of 2017. Net loss for the full year 2017 was $3.7 million, or ($0.14) per diluted share, compared to net income for the full year 2016 of $13.4 million, or $0.53 per diluted share.

Fourth Quarter Highlights

• Grew loans held for investment by $28.4 million to $1.93 billion from September 30, 2017.
• Grew commercial and industrial loans by $52.9 million to $615.4 million from September 30, 2017.
• Grew total quarterly average deposits by $73.6 million to $2.19 billion from the third quarter of 2017.
• Reported taxable equivalent net interest margin of 3.39%, an increase of 13 basis points from the third quarter of 2017.
• Decreased nonperforming assets to 0.14% of total assets from 0.23% in the third quarter of 2017.
• Recorded expense of $2.2 million related to the previously announced resignation of the President and Chief Operating Officer and a planned reduction of staff. 

2017 Highlights

• Grew commercial and industrial loans by $84.3 million, or 16%, from December 31, 2016.
• Grew average noninterest bearing deposits by $71.3 million, or 13%, from 2016.
• Reported taxable equivalent net interest margin of 3.28%, an increase of 16 basis points from 2016.
• Grew income from SBA lending activities by $487,000, or 13%, from 2016.
• Completed the sale of our Cleveland Tennessee branch in the first quarter of 2017.

2018 Expectations

• Anticipate closing on the sale of the Southeast Trust Company in the second quarter of 2018, with an expected gain of approximately $1.7 million. 
• Plan additional severance expense in the first quarter of 2018 from the reduction of staff and the closing of our Charlotte loan production office.   
• Anticipate the consolidation of two branches in Chattanooga, Tennessee during the first quarter of 2018.
• Estimate the 2018 effective tax rate to be approximately 20%. 

“Atlantic Capital’s earnings in the fourth quarter of 2017 were affected not only by the change in tax law, but also by several actions management has taken to drive growth in our core businesses, streamline the structure of our organization, and position the Company for better performance in 2018 and beyond. This disciplined focus on efficiency, alignment, and productivity will continue in our day to day management of the Company,” explained Douglas Williams, President and Chief Executive Officer.

“We are confident as we begin 2018 that the cost saving, restructuring, and new investment decisions we have made will allow us to bring our successful and focused banking strategy to the entire Atlantic Capital footprint, while providing best of class service and solutions to our clients and prospects. Our banking teams are now almost fully staffed and are better aligned for meaningful improvement in performance. Our balance sheet is strong and our credit quality is sound.  We are ready for 2018.”

Income Statement

Net interest income increased to $21.1 million in the fourth quarter of 2017 from $20.3 million in the third quarter of 2017, primarily as a result of higher loan and investment yields. Net accretion income on acquired loans totaled $686,000 in the fourth quarter of 2017 compared to $343,000 in the third quarter of 2017.

Taxable equivalent net interest margin was 3.39% in the fourth quarter of 2017, an increase of 13 basis points from the third quarter of 2017. The accretion from the acquired loan discount and amortization of time deposit premium contributed 12 basis points to the net interest margin in the fourth quarter of 2017 compared to 6 basis points in the third quarter of 2017.

Loan yields in the fourth quarter of 2017 increased 20 basis points to 4.61% from the third quarter of 2017 as a result of the December increase in the fed funds rate, an increase in loan fees and an increase in accretion income. Loan fees contributed 25 basis points to the loan yield in the fourth quarter of 2017 compared to 20 basis points in the third quarter of 2017. Accretion income contributed 15 basis points to the loan yield in the fourth quarter of 2017 compared to 7 basis points in the third quarter of 2017.

The cost of total deposits in the fourth quarter of 2017 was 0.52%, an increase of 2 basis points from the third quarter of 2017. The cost of interest bearing deposits increased 1 basis point to 0.73% from the third quarter of 2017.

The provision for loan losses was $282,000 in the fourth quarter of 2017 compared to $322,000 in the third quarter of 2017. Non-performing assets to total assets improved to 0.14% in the fourth quarter of 2017, compared to 0.23% for the third quarter of 2017. The fourth quarter included a recovery of $192,000 on a $7.7 million loan relationship that was charged-off in the third quarter of 2017.

Noninterest income totaled $3.6 million in the fourth quarter of 2017, an increase of $91,000 from the third quarter of 2017. The increase included higher derivatives income of $97,000, and higher trust income of $45,000, resulting from an increase in assets under management. This was offset by a decrease in mortgage income of $30,000 due to lower residential mortgage loan sales and a decrease in SBA income of $45,000 resulting from lower loan sales.

Noninterest expense totaled $20.6 million in the fourth quarter of 2017 compared to $17.5 million in the third quarter of 2017. Salaries and employee benefits expense increased by $2.9 million in the fourth quarter of 2017 to $13.3 million.  The fourth quarter salaries and benefits expense included $937,000 in severance expense, $1.3 million in expenses related to the President and Chief Operating Officer’s resignation, and the additional expense of adding new SBA and Tennessee commercial bankers.

Balance Sheet

Total loans were $1.94 billion at December 31, 2017, an increase of $26.6 million from September 30, 2017. Loans held for investment were $1.93 billion at December 31, 2017, an increase of $28.4 million from September 30, 2017, as commercial and industrial loans grew $52.9 million during the quarter due to an increase in new loan originations and increased balances on existing loans. This increase was offset by a $27.7 million decrease in investment commercial real estate and construction and land loans related to the timing of payoffs.

At December 31, 2017, the allowance for loan losses was $19.3 million, or 1.00% of loans held for investment, compared to $18.9 million, or 0.99% of loans held for investment as of September 30, 2017. Annualized net charge-offs to average loans totaled (0.04%) in the fourth third quarter of 2017 and totaled 0.23% for 2017. Nonperforming assets totaled $4.1 million, or 0.14% of total assets, as of December 31, 2017, compared to $6.0 million, or 0.23% of total assets, as of September 30, 2017.

Total average deposits for the fourth quarter of 2017 were $2.19 billion, an increase of $73.6 million from the third quarter of 2017. Average noninterest bearing deposits increased $21.2 million to $649.2 million in the fourth quarter of 2017 and accounted for 29.6% of average total deposits.

Total deposits were $2.45 billion at December 31, 2017, an increase of $347.0 million from September 30, 2017. This increase included higher than normal levels of seasonal volatility at year-end.

Earnings Conference Call

The Company will host a conference call at 10:00 a.m. EST on Monday, January 29, 2018, to discuss the financial results for the quarter ended December 31, 2017. Individuals wishing to participate in the conference call may do so by dialing 844.868.8848 from the United States and entering Conference ID 89772886. The call will also be available live via webcast on the Investor Relations page of the Company's website, www.atlanticcapitalbank.com.

Non-GAAP Financial Measures

Statements included in this press release include non-GAAP financial measures and should be read along with the accompanying tables, which provide a reconciliation of non-GAAP financial measures to GAAP financial measures. Atlantic Capital management uses non-GAAP financial measures, including: (i) operating net income; (ii) operating non-interest expense; (iii) operating non-interest income; (iv) taxable equivalent interest income; (v) taxable equivalent net interest margin; (vi) efficiency ratio; (vii) operating return on average assets; (viii) operating return on average equity; (ix) tangible common equity; and (x) tangible book value, in its analysis of the Company's performance. Operating net income excludes the following from net income available to common shareholders: merger and conversion costs, net gains on branch sales, and the income tax effect of adjustments. Operating net income also excludes the revaluation of net deferred tax assets. Operating non-interest expense excludes merger and conversion costs from non-interest expense as well as costs related to the sale of branches. The efficiency ratio excludes merger and conversion costs. Tangible common equity excludes goodwill and other intangible assets from shareholders' equity.

Management believes that non-GAAP financial measures provide a greater understanding of ongoing performance and operations, and enhance comparability with prior periods. Non-GAAP financial measures should not be considered as an alternative to any measure of performance or financial condition as determined in accordance with GAAP, and investors should consider Atlantic Capital’s performance and financial condition as reported under GAAP and all other relevant information when assessing the performance or financial condition of the Company. Non-GAAP financial measures have limitations as analytical tools, and investors should not consider them in isolation or as a substitute for analysis of the results or financial condition as reported under GAAP. Non-GAAP financial measures may not be comparable to non-GAAP financial measures presented by other companies.

Forward-Looking Statements

This press release contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements represent plans, estimates, objectives, goals, guidelines, expectations, intentions, projections and statements of our beliefs concerning future events, business plans, objectives, expected operating results and the assumptions upon which those statements are based. Forward-looking statements include without limitation, any statement that may predict, forecast, indicate or imply future results, performance or achievements, and are typically identified with words such as “may,” “could,” “should,” “will,” “would,” “believe,” “anticipate,” “estimate,” “project,” “expect,” “intend,” “plan,” or words or phases of similar meaning. Forward-looking statements may include, among other things, statements about Atlantic Capital’s confidence in its strategies and its expectations about financial performance, market growth, market and regulatory trends and developments, strategic focus, acquisitions and divestitures, new technologies, services and opportunities and earnings. The forward-looking statements are based largely on Atlantic Capital’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 Atlantic Capital’s control. Atlantic Capital undertakes no obligation to publicly update any forward-looking statement to reflect developments occurring after the statement is made, except as otherwise required by law. Actual results, performance or achievements could differ materially from those contemplated, expressed, or implied by the forward-looking statements as a result of, among other factors, the risks and uncertainties described in the “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” sections in Atlantic Capital’s Annual Report on Form 10-K and Quarterly Reports on Form 10-Q. Please refer to the SEC’s website at www.sec.gov where you can review those documents.

About Atlantic Capital Bancshares

Atlantic Capital Bancshares, Inc. is a $2.9 billion publicly traded bank holding company headquartered in Atlanta, Georgia. Atlantic Capital offers banking, treasury management, capital markets, trust, and mortgage services to privately held companies and individuals in Atlanta, eastern Tennessee, and northwest Georgia. Atlantic Capital also provides specialized financial services to select clients nationally.

ATLANTIC CAPITAL BANCSHARES, INC.
Selected Financial Information
		2017																	2016				For the year ended December 31,
(in thousands, except share and per share data; taxable equivalent)		Fourth Quarter					Third Quarter				Second Quarter				First Quarter				Fourth Quarter				2017					2016
INCOME SUMMARY
Interest income (1)		$	25,350				$	24,566			$	24,545			$	22,716			$	22,530			$	97,177				$	88,701
Interest expense		4,028					4,060				3,833				3,208				3,029				15,129					11,509
Net interest income		21,322					20,506				20,712				19,508				19,501				82,048					77,192
Provision for loan losses		282					322				1,980				634				2,208				3,218					3,816
Net interest income after provision for loan losses		21,040					20,184				18,732				18,874				17,293				78,830					73,376
Operating noninterest income (2)		3,568					3,477				5,287				3,857				4,430				16,189					17,847
Operating noninterest expense (3)		20,594					17,504				17,623				17,744				18,571				73,465					70,233
Operating income before income taxes		4,014					6,157				6,396				4,987				3,152				21,554					20,990
Operating income tax expense (4)		1,953					2,105				2,067				1,757				1,417				7,882					8,108
Operating net income (2)(3)(4)		2,061					4,052				4,329				3,230				1,735				13,672					12,882
Merger related expenses, net of income tax		—					—				—				—				126				—					1,685
Net gain on sale of branches, net of income tax		—					—				—				—				—				—					2,198
Revaluation of net deferred tax asset		17,398					—				—				—				—				17,398					—
Net income (loss) - GAAP		$	(15,337	)			$	4,052			$	4,329			$	3,230			$	1,609			$	(3,726	)			$	13,395
PER SHARE DATA
Diluted earnings (loss) per share - GAAP		$	(0.59	)			$	0.16			$	0.17			$	0.13			$	0.06			$	(0.14	)			$	0.53
Diluted earnings per share - operating (2)(3)(4)		0.08					0.16				0.17				0.13				0.07				0.53					0.51
Book value per share		11.99					12.63				12.45				12.18				12.10				11.99					12.10
Tangible book value per share (5)		11.05					11.67				11.47				11.16				11.05				11.05					11.05
PERFORMANCE MEASURES
Return on average equity - GAAP		(18.66		)	%		4.96			%	5.48			%	4.19			%	2.09			%	(1.17		)	%		4.44			%
Return on average equity - operating (2)(3)(4)		2.51					4.96				5.48				4.19				2.25				4.29					4.27
Return on average assets - GAAP		(2.24		)			0.60				0.63				0.48				0.24				(0.14		)			0.49
Return on average assets - operating (2)(3)(4)		0.30					0.60				0.63				0.48				0.25				0.50					0.48
Taxable equivalent net interest margin		3.39					3.26				3.26				3.20				3.11				3.28					3.12
Efficiency ratio		83.45					73.65				68.37				76.78				78.33				75.48					74.28
CAPITAL
Average equity to average assets		11.99			%		11.99			%	11.47			%	11.44			%	11.33			%	11.72			%		11.13			%
Tangible common equity to tangible assets		9.91					11.48				10.99				10.27				10.27				9.91					10.27
Tier 1 capital ratio		11.1			(7	)	11.3				10.9				10.7				10.3				11.1			(7	)	10.3
Total risk based capital ratio		14.1			(7	)	14.3				14.0				13.8				13.3				14.1			(7	)	13.3
Number of common shares outstanding - basic		25,712,909					25,716,418				25,654,521				25,535,013				25,093,135				25,712,909					25,093,135
Number of common shares outstanding - diluted		25,891,225					25,967,575				25,931,671				25,836,809				25,673,841				25,891,225					25,673,841
ASSET QUALITY
Allowance for loan losses to loans held for investment		1.00			%		0.99			%	1.11			%	1.05			%	1.04			%	1.00			%		1.04			%
Net charge-offs to average loans (6)		(0.04		)			0.68				0.01				0.26				0.03				0.23					0.11
NPAs to total assets		0.14					0.23				0.52				0.21				0.13				0.14					0.13
(1)Interest income on tax-exempt securities has been increased to reflect comparable interest on taxable securities. The rate used was 35%, reflecting the statutory federal income tax rate. (2)Excludes gain on sale of branches. (3)Excludes merger related and divestiture expenses. (4)Excludes revaluation of net deferred tax asset. (5)Excludes effect of acquisition related intangibles. (6)Annualized. (7)Amounts are estimates as of 12/31/17.

ATLANTIC CAPITAL BANCSHARES, INC.
Consolidated Balance Sheets (unaudited)
		December 31,				September 30,				December 31,
(in thousands, except share data)		2017				2017				2016
ASSETS
Cash and due from banks		$	38,086			$	35,504			$	36,790
Interest-bearing deposits in banks		281,247				40,558				118,039
Other short-term investments		10,681				5,189				10,896
Cash and cash equivalents		330,014				81,251				165,725
Investment securities available-for-sale		449,117				447,005				347,705
Other investments		32,174				35,818				23,806
Loans held for sale		1,487				3,274				35,219
Loans held for investment		1,933,839				1,905,432				1,981,330
Less: allowance for loan losses		(19,344		)		(18,870		)		(20,595		)
Loans held for investment, net		1,914,495				1,886,562				1,960,735
Branch premises held for sale		—				—				2,995
Premises and equipment, net		12,054				11,747				11,958
Bank owned life insurance		63,667				63,284				62,160
Goodwill and intangible assets, net		27,633				27,945				29,567
Other real estate owned		1,215				1,494				1,872
Other assets		59,565				80,032				85,801
Total assets		$	2,891,421			$	2,638,412			$	2,727,543
LIABILITIES AND SHAREHOLDERS' EQUITY
Deposits:
Noninterest-bearing demand		$	732,442			$	599,292			$	643,471
Interest-bearing checking		306,331				270,740				264,062
Savings		26,573				30,131				27,932
Money market		1,117,891				865,238				912,493
Time		138,612				144,250				157,810
Brokered deposits		128,816				193,994				200,223
Deposits to be assumed in branch sale		—				—				31,589
Total deposits		2,450,665				2,103,645				2,237,580
Federal Home Loan Bank borrowings		45,000				125,000				110,000
Long-term debt		49,535				49,493				49,366
Other liabilities		37,796				35,520				26,939
Total liabilities		2,582,996				2,313,658				2,423,885
SHAREHOLDERS' EQUITY
Preferred stock, no par value;  10,000,000 shares authorized; no shares issued and outstanding as of December 31, 2017, September 30, 2017, and December 31, 2016		—				—				—
Common stock, no par value; 100,000,000 shares authorized; 25,712,909, 25,716,418, and 25,093,135 shares issued and outstanding as of December 31, 2017, September 30, 2017, and December 31, 2016, respectively		299,474				298,469				292,747
Retained earnings		12,810				28,147				16,536
Accumulated other comprehensive (loss) income		(3,859		)		(1,862		)		(5,625		)
Total shareholders’ equity		308,425				324,754				303,658
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY		$	2,891,421			$	2,638,412			$	2,727,543

ATLANTIC CAPITAL BANCSHARES, INC.
Consolidated Statements of Income (unaudited)
(in thousands, except share and per share data)		Three months ended																				Year ended
		December 31, 2017				September 30, 2017				June 30, 2017				March 31, 2017				December 31, 2016				December 31, 2017				December 31, 2016
INTEREST INCOME
Loans, including fees		$	22,043			$	21,491			$	21,361			$	19,994			$	20,363			$	84,889			$	80,781
Investment securities available-for-sale		2,510				2,298				2,355				2,018				1,477				9,181				5,698
Interest and dividends on other interest‑earning assets		584				562				606				449				467				2,201				1,738
Total interest income		25,137				24,351				24,322				22,461				22,307				96,271				88,217
INTEREST EXPENSE
Interest on deposits		2,856				2,693				2,481				2,047				1,929				10,077				7,399
Interest on Federal Home Loan Bank advances		323				459				452				302				234				1,536				558
Interest on federal funds purchased and securities sold under agreements to repurchase		26				84				76				36				38				222				229
Interest on long-term debt		823				824				824				823				828				3,294				3,285
Other		—				—				—				—				—				—				38
Total interest expense		4,028				4,060				3,833				3,208				3,029				15,129				11,509
NET INTEREST INCOME BEFORE PROVISION FOR LOAN LOSSES		21,109				20,291				20,489				19,253				19,278				81,142				76,708
Provision for loan losses		282				322				1,980				634				2,208				3,218				3,816
NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES		20,827				19,969				18,509				18,619				17,070				77,924				72,892
NONINTEREST  INCOME
Service charges		1,206				1,247				1,274				1,349				1,327				5,076				5,487
Gains (losses) on sale of securities		17				(80		)		—				—				—				(63		)		44
Gains (losses) on sale of other assets		(46		)		44				666				78				238				742				388
Mortgage income		290				320				388				257				499				1,255				1,917
Trust income		482				437				488				407				350				1,814				1,411
Derivatives income		94				(3		)		116				(51		)		346				156				578
Bank owned life insurance		384				384				384				378				395				1,530				1,610
SBA lending activities		843				888				1,171				1,227				599				4,129				3,642
TriNet lending activities		27				20				20				20				357				87				1,501
Gains on sale of branches		—				—				302				—				—				302				3,885
Other noninterest income		271				220				478				192				319				1,161				1,269
Total noninterest income		3,568				3,477				5,287				3,857				4,430				16,189				21,732
NONINTEREST EXPENSE
Salaries and employee benefits		13,298				10,409				10,603				11,065				11,269				45,375				42,303
Occupancy		1,156				1,129				1,074				1,230				995				4,589				4,604
Equipment and software		872				776				996				805				694				3,449				2,966
Professional services		1,280				1,595				973				904				968				4,752				2,918
Postage, printing and supplies		114				63				78				85				73				340				462
Communications and data processing		1,111				982				1,069				987				1,064				4,149				3,291
Marketing and business development		225				272				179				270				247				946				1,100
FDIC premiums		212				308				132				314				262				966				1,568
Merger and conversion costs		—				—				304				—				204				304				2,742
Amortization of intangibles		367				391				425				470				495				1,653				2,445
Foreclosed property/problem asset expense		7				7				107				3				666				124				864
Other noninterest expense		1,952				1,572				1,683				1,611				1,838				6,818				8,017
Total noninterest expense		20,594				17,504				17,623				17,744				18,775				73,465				73,280
INCOME BEFORE PROVISION FOR INCOME TAXES		3,801				5,942				6,173				4,732				2,725				20,648				21,344
Provision for income taxes		19,138				1,890				1,844				1,502				1,116				24,374				7,949
NET (LOSS)/INCOME		$	(15,337	)		$	4,052			$	4,329			$	3,230			$	1,609			$	(3,726	)		$	13,395
Net (loss)/income per common share ‑ basic		$	(0.60	)		$	0.16			$	0.17			$	0.13			$	0.06			$	(0.15	)		$	0.54
Net (loss)/income per common share ‑ diluted		$	(0.59	)		$	0.16			$	0.17			$	0.13			$	0.06			$	(0.14	)		$	0.53
Weighted average shares - basic		25,723,548				25,699,179				25,621,910				25,320,690				25,027,304				25,592,731				24,763,522
Weighted average shares - diluted		25,888,064				25,890,779				25,831,281				25,672,286				25,407,728				25,822,085				25,186,680

ATLANTIC CAPITAL BANCSHARES, INC.
Average Balance Sheets and Net Interest Margin Analysis
Selected Financial Information
		Three months ended
		December 31, 2017												September 30, 2017
(dollars in thousands; taxable equivalent)		Average Balance				Interest Income/ Expense				Tax Equivalent Yield/Rate				Average Balance				Interest Income/ Expense				Tax Equivalent Yield/Rate
Assets
Interest bearing deposits in other banks		$	113,553			$	302			1.06		%		$	69,839			$	216			1.23		%
Other short-term investments		8,532				40				1.86				13,830				67				1.92
Investment securities:
Taxable investment securities		378,859				2,024				2.12				373,087				1,812				1.93
Non-taxable investment securities(1)		81,410				699				3.41				82,781				701				3.36
Total investment securities		460,269				2,723				2.35				455,868				2,513				2.19
Total loans		1,898,745				22,043				4.61				1,934,505				21,491				4.41
FHLB and FRB stock		16,693				242				5.75				18,494				279				5.99
Total interest-earning assets		2,497,792				25,350				4.03				2,492,536				24,566				3.91
Non-earning assets		222,278												208,851
Total assets		$	2,720,070											$	2,701,387
Liabilities
Interest bearing deposits:
NOW, money market, and savings		1,276,116				2,140				0.67				1,192,664				1,886				0.63
Time deposits		140,921				301				0.85				143,862				292				0.81
Brokered deposits		128,594				415				1.28				156,708				515				1.30
Total interest-bearing deposits		1,545,631				2,856				0.73				1,493,234				2,693				0.72
Total borrowings		111,879				349				1.24				179,808				543				1.20
Total long-term debt		49,507				823				6.60				49,465				824				6.61
Total interest-bearing liabilities		1,707,017				4,028				0.94				1,722,507				4,060				0.94
Demand deposits		649,218												628,029
Other liabilities		37,776												27,019
Shareholders' equity		326,059												323,832
Total liabilities and shareholders' equity		$	2,720,070											$	2,701,387
Net interest spread										3.09		%										2.97		%
Net interest income and net interest margin(2)						$	21,322			3.39		%						$	20,506			3.26		%
Non-taxable equivalent net interest margin										3.35		%										3.23		%
(1) Interest revenue on tax-exempt securities has been increased to reflect comparable interest on taxable securities. The rate used was 35%, reflecting the statutory federal income tax rate.
(2) Tax equivalent net interest income divided by total interest-earning assets using the appropriate day count convention based on the type of interest-earning asset.

ATLANTIC CAPITAL BANCSHARES, INC.
Average Balance Sheets and Net Interest Margin Analysis
Selected Financial Information
		Year ended
		December 31, 2017												December 31, 2016
(dollars in thousands; taxable equivalent)		Average Balance				Interest Income/ Expense				Tax Equivalent Yield/Rate				Average Balance				Interest Income/ Expense				Tax Equivalent Yield/Rate
Assets
Interest bearing deposits in other banks		$	85,525			$	916			1.07		%		$	92,744			$	583			0.63		%
Other short-term investments		14,266				270				1.89				23,134				318				1.37
Investment securities:
Taxable investment securities		366,309				7,221				1.97				310,815				4,755				1.53
Non-taxable investment securities(1)		81,466				2,866				3.52				46,239				1,427				3.09
Total investment securities		447,775				10,087				2.25				357,054				6,182				1.73
Total loans		1,936,109				84,889				4.38				1,986,482				80,781				4.07
FHLB and FRB stock		18,528				1,015				5.48				15,617				837				5.36
Total interest-earning assets		2,502,203				97,177				3.88				2,475,031				88,701				3.58
Non-earning assets		217,455												234,107
Total assets		$	2,719,658											$	2,709,138
Liabilities
Interest bearing deposits:
NOW, money market, and savings		1,197,771				6,983				0.58				1,170,879				4,889				0.42
Time deposits		149,350				1,134				0.76				208,800				936				0.45
Brokered deposits		168,685				1,960				1.16				207,543				1,574				0.76
Total interest-bearing deposits		1,515,806				10,077				0.66				1,587,222				7,399				0.47
Total borrowings		175,060				1,758				1.00				176,122				825				0.47
Total long-term debt		49,444				3,294				6.66				49,275				3,285				6.67
Total interest-bearing liabilities		1,740,310				15,129				0.87				1,812,619				11,509				0.63
Demand deposits		631,046												559,762
Other liabilities		29,497												35,314
Shareholders' equity		318,805												301,443
Total liabilities and shareholders' equity		$	2,719,658											$	2,709,138
Net interest spread										3.01		%										2.95		%
Net interest income and net interest margin(2)						$	82,048			3.28		%						$	77,192			3.12		%
Non-taxable equivalent net interest margin										3.24		%										3.10		%
(1) Interest revenue on tax-exempt securities has been increased to reflect comparable interest on taxable securities. The rate used was 35%, reflecting the statutory federal income tax rate.
(2) Tax equivalent net interest income divided by total interest-earning assets using the appropriate day count convention based on the type of interest-earning asset.

ATLANTIC CAPITAL BANCSHARES, INC.
Period End Loans
(dollars in thousands)		December 31, 2017				September 30, 2017				June 30, 2017				March 31, 2017				December 31, 2016				Linked Quarter Change				Year Over Year Change
Loans held for sale
Loans held for sale		$	1,487			$	3,274			$	1,744			$	1,297			$	4,302			$	(1,787	)		$	(2,815	)
Branch loans held for sale		—				—				—				27,944				30,917				—				(30,917		)
Total loans held for sale		$	1,487			$	3,274			$	1,744			$	29,241			$	35,219			$	(1,787	)		$	(33,732	)
Loans held for investment
Commercial loans:
Commercial and industrial		$	615,359			$	562,426			$	578,888			$	544,911			$	531,061			$	52,933			$	84,298
Commercial real estate:
Multifamily		99,553				91,219				113,571				108,215				68,223				8,334				31,330
Owner occupied		346,746				348,447				351,733				348,888				352,523				(1,701		)		(5,777		)
Investment		494,116				505,188				517,571				478,485				438,032				(11,072		)		56,084
Construction and land:
1-4 family residential construction		6,906				9,644				11,711				11,799				10,335				(2,738		)		(3,429		)
Other construction, development, and land		108,589				122,436				113,347				123,838				209,017				(13,847		)		(100,428		)
Mortgage warehouse loans		39,981				41,551				47,992				58,357				147,519				(1,570		)		(107,538		)
Total commercial loans		1,711,250				1,680,911				1,734,813				1,674,493				1,756,710				30,339				(45,460		)
Residential:
Residential mortgages		104,484				101,976				101,798				99,665				101,921				2,508				2,563
Home equity		76,244				78,773				79,769				81,438				77,358				(2,529		)		(1,114		)
Total residential loans		180,728				180,749				181,567				181,103				179,279				(21		)		1,449
Consumer		29,393				31,750				31,981				32,525				27,338				(2,357		)		2,055
Other		16,278				16,106				18,013				17,611				21,565				172				(5,287		)
		1,937,649				1,909,516				1,966,374				1,905,732				1,984,892				28,133				(47,243		)
Less net deferred fees and other unearned income		(3,810		)		(4,084		)		(4,283		)		(4,008		)		(3,562		)		274				(248		)
Total loans held for investment		$	1,933,839			$	1,905,432			$	1,962,091			$	1,901,724			$	1,981,330			$	28,407			$	(47,491	)
Total loans		$	1,935,326			$	1,908,706			$	1,963,835			$	1,930,965			$	2,016,549			$	26,620			$	(81,223	)

ATLANTIC CAPITAL BANCSHARES, INC.
Allowance for Loan Losses Activity and Credit Quality
		2017																2016
(dollars in thousands)		Fourth Quarter				Third Quarter				Second Quarter				First  Quarter				Fourth Quarter
Balance at beginning of period		$	18,870			$	21,870			$	19,939			$	20,595			$	18,534
Provision for loan losses		312				314				2,048				565				2,134
Provision for PCI loan losses		(30		)		8				(68		)		69				74
Loans charged-off:
Commercial and industrial		—				(3,292		)		—				(781		)		—
Commercial real estate		—				—				—				(132		)		24
Construction and land		—				(16		)		—				—				—
Residential mortgages		—				—				—				(46		)		—
Home equity		—				(31		)		(8		)		—				—
Consumer		(13		)		(7		)		(57		)		(332		)		(158		)
Other		—				—				—				—				—
Total loans charged-off		(13		)		(3,346		)		(65		)		(1,291		)		(134		)
Recoveries on loans previously charged‑off:
Commercial and industrial		192				1				7				—				—
Commercial real estate		—				—				2				—				(15		)
Construction and land		1				15				—				—				—
Residential mortgages		—				—				1				—				—
Home equity		—				—				1				—				—
Consumer		12				8				5				1				2
Other		—				—				—				—				—
Total recoveries		205				24				16				1				(13		)
Net charge-offs		$	192			$	(3,322	)		$	(49	)		$	(1,290	)		$	(147	)
Balance at period end		$	19,344			$	18,870			$	21,870			$	19,939			$	20,595
Loans held for investment
PCI Loans		$	11,754			$	12,090			$	11,510			$	11,841			$	15,253
Non-PCI Loans		1,922,085				1,893,342				1,950,581				1,889,883				1,966,077
		$	1,933,839			$	1,905,432			$	1,962,091			$	1,901,724			$	1,981,330
Non-performing loans - PCI		$	1,211			$	1,289			$	1,310			$	1,684			$	2,446
Non-performing loans - Non-PCI		$	2,912			$	4,553			$	12,300			$	3,983			$	1,615
Foreclosed properties (OREO)		1,215				1,494				1,819				1,869				1,872
Total nonperforming assets		$	4,127			$	6,047			$	14,119			$	5,852			$	3,487
Allowance for loan losses to loans held for investment		1.00			%	0.99			%	1.11			%	1.05			%	1.04			%
Net charge-offs to average loans (1)		(0.04		)		0.68				0.01				0.26				0.03
Nonperforming loans as a percentage of total loans (2)		0.15				0.24				0.63				0.21				0.08
Nonperforming assets as a percentage of total assets (2)		0.14				0.23				0.52				0.21				0.13
(1)Annualized.  (2)Excludes non-performing PCI loans.

ATLANTIC CAPITAL BANCSHARES, INC.
Period End Deposits
(dollars in thousands)		December 31, 2017				September 30, 2017				June 30,  2017				March 31, 2017				December 31, 2016				Linked Quarter Change				Year Over Year Change
DDA		$	732,442			$	599,292			$	612,744			$	606,386			$	643,471			$	133,150			$	88,971
NOW		306,331				270,740				250,254				259,760				264,062				35,591				42,269
Savings		26,573				30,131				30,170				30,756				27,932				(3,558		)		(1,359		)
Money Market		1,117,891				865,238				882,824				916,390				912,493				252,653				205,398
Time		138,612				144,250				142,915				150,867				157,810				(5,638		)		(19,198		)
Brokered		128,816				193,994				195,047				209,385				200,223				(65,178		)		(71,407		)
Deposits to be assumed in branch sale		—				—				—				29,495				31,589				—				(31,589		)
Total Deposits		$	2,450,665			$	2,103,645			$	2,113,954			$	2,203,039			$	2,237,580			$	347,020			$	213,085
Payments Clients		$	405,873			$	239,079			$	250,104			$	321,899			$	347,833			$	166,794			$	58,040
Average Deposits(1)
		2017																2016				Linked Quarter Change				Year Over Year Change
(dollars in thousands)		Fourth Quarter				Third Quarter				Second Quarter				First  Quarter				Fourth Quarter
DDA		$	649,218			$	628,029			$	626,330			$	620,325			$	591,166			$	21,189			$	58,052
NOW		338,741				291,810				293,160				290,862				253,187				46,931				85,554
Savings		29,851				30,236				30,468				30,306				29,741				(385		)		110
Money Market		907,524				870,618				860,116				815,920				853,281				36,906				54,243
Time		140,921				143,862				149,898				163,021				169,677				(2,941		)		(28,756		)
Brokered		128,594				156,708				198,703				191,558				197,833				(28,114		)		(69,239		)
Total Deposits		$	2,194,849			$	2,121,263			$	2,158,675			$	2,111,992			$	2,094,885			$	73,586			$	99,964
Payments Clients		$	234,558			$	209,851			$	244,157			$	273,630			$	211,000			$	24,707			$	23,558
Noninterest bearing deposits as a percentage of average deposits		29.6		%		29.6		%		29.0		%		29.4		%		28.2		%
Cost of deposits		0.52		%		0.50		%		0.46		%		0.39		%		0.37		%
(1) Includes average balances of deposits to be assumed in branch sale.

ATLANTIC CAPITAL BANCSHARES, INC.
Non-GAAP Performance and Financial Measures Reconciliation
(in thousands, except share and per share data)		2017																2016				For the year ended December 31,
		Fourth Quarter				Third Quarter				Second Quarter				First Quarter				Fourth Quarter				2017				2016
Taxable equivalent interest income reconciliation
Interest income - GAAP		$	25,137			$	24,351			$	24,322			$	22,461			$	22,307			$	96,271			$	88,217
Taxable equivalent adjustment		213				215				223				255				223				906				484
Interest income - taxable equivalent		$	25,350			$	24,566			$	24,545			$	22,716			$	22,530			$	97,177			$	88,701
Taxable equivalent net interest income reconciliation
Net interest income - GAAP		$	21,109			$	20,291			$	20,489			$	19,253			$	19,278			$	81,142			$	76,708
Taxable equivalent adjustment		213				215				223				255				223				906				484
Net interest income - taxable equivalent		$	21,322			$	20,506			$	20,712			$	19,508			$	19,501			$	82,048			$	77,192
Taxable equivalent net interest margin reconciliation
Net interest margin - GAAP		3.35			%	3.23			%	3.23			%	3.16			%	3.07			%	3.24			%	3.10			%
Impact of taxable equivalent adjustment		0.04				0.03				0.03				0.04				0.04				0.04				0.02
Net interest margin - taxable equivalent		3.39			%	3.26			%	3.26			%	3.20			%	3.11			%	3.28			%	3.12			%
Operating noninterest income reconciliation
Noninterest income - GAAP		$	3,568			$	3,477			$	5,287			$	3,857			$	4,430			$	16,189			$	21,732
Gain on sale of branches		—				—				—				—				—				—				(3,885		)
Operating noninterest income		$	3,568			$	3,477			$	5,287			$	3,857			$	4,430			$	16,189			$	17,847
Operating noninterest expense reconciliation
Noninterest expense - GAAP		$	20,594			$	17,504			$	17,623			$	17,744			$	18,775			$	73,465			$	73,280
Merger-related expenses		—				—				—				—				(204		)		—				(2,742		)
Divestiture expenses		—				—				—				—				—				—				(305		)
Operating noninterest expense		$	20,594			$	17,504			$	17,623			$	17,744			$	18,571			$	73,465			$	70,233
Operating income before income taxes reconciliation
Income before income taxes - GAAP		$	3,801			$	5,942			$	6,173			$	4,732			$	2,725			$	20,648			$	21,344
Taxable equivalent adjustment		213				215				223				255				223				906				484
Merger-related expenses		—				—				—				—				204				—				2,742
Divestiture expenses		—				—				—				—				—				—				305
Gain on sale of branches		—				—				—				—				—				—				(3,885		)
Operating income before income taxes		$	4,014			$	6,157			$	6,396			$	4,987			$	3,152			$	21,554			$	20,990
Operating income tax reconciliation
Income tax expense - GAAP		$	19,138			$	1,890			$	1,844			$	1,502			$	1,116			$	24,374			$	7,949
Taxable equivalent adjustment		213				215				223				255				223				906				484
Merger related expenses, tax benefit		—				—				—				—				78				—				1,057
Divestiture expenses, tax benefit		—				—				—				—				—				—				118
Gain on sale of branches, tax expense		—				—				—				—				—				—				(1,500		)
Revaluation of net deferred tax asset		(17,398		)		—				—				—				—				(17,398		)		—
Operating income tax expense		$	1,953			$	2,105			$	2,067			$	1,757			$	1,417			$	7,882			$	8,108
Operating net income reconciliation
Net income (loss) - GAAP		$	(15,337	)		$	4,052			$	4,329			$	3,230			$	1,609			$	(3,726	)		$	13,395
Merger related expenses, net of income tax		—				—				—				—				126				—				1,685
Divestiture expenses, net of income tax		—				—				—				—				—				—				187
Gain on sale of branches, net of income tax		—				—				—				—				—				—				(2,385		)
Revaluation of net deferred tax asset		17,398				—				—				—				—				17,398				—
Operating net income		$	2,061			$	4,052			$	4,329			$	3,230			$	1,735			$	13,672			$	12,882
Operating diluted earnings per share reconciliation
Diluted earnings (loss) per share - GAAP		$	(0.59	)		$	0.16			$	0.17			$	0.13			$	0.06			$	(0.14	)		$	0.53
Merger related expenses		—				—				—				—				0.01				—				0.06
Net gain on sale of branches		—				—				—				—				—				—				(0.08		)
Revaluation of net deferred tax asset		0.67				—				—				—				—				0.67				—
Diluted earnings per share - operating		$	0.08			$	0.16			$	0.17			$	0.13			$	0.07			$	0.53			$	(0.51	)
Tangible book value per common share reconciliation
Total shareholders’ equity		$	308,425			$	324,754			$	319,435			$	310,967			$	303,658			$	308,425			$	303,658
Intangible assets		(24,393		)		(24,760		)		(25,151		)		(25,913		)		(26,383		)		(24,393		)		(26,383		)
Total tangible common equity		$	284,032			$	299,994			$	294,284			$	285,054			$	277,275			$	284,032			$	277,275
Common shares outstanding		25,712,909				25,716,418				25,654,521				25,535,013				25,093,135				25,712,909				25,093,135
Book value per common share - GAAP		$	11.99			$	12.63			$	12.45			$	12.18			$	12.10			$	11.99			$	12.10
Tangible book value		11.05				11.67				11.47				11.16				11.05				11.05				11.05
Return on average equity reconciliation
Net income (loss) - GAAP		$	(15,337	)		$	4,052			$	4,329			$	3,230			$	1,609			$	(3,726	)		$	13,395
Merger related expenses, net of income tax		—				—				—				—				126				—				1,685
Divestiture expenses, net of income tax		—				—				—				—				—				—				187
Gain on sale of branches, net of income tax		—				—				—				—				—				—				(2,385		)
Revaluation of net deferred tax asset		17,398				—				—				—				—				17,398				—
Operating net income		$	2,061			$	4,052			$	4,329			$	3,230			$	1,735			$	13,672			$	12,882
Average shareholders' equity		$	326,059			$	323,832			$	316,825			$	308,261			$	308,588			$	318,805			$	301,443
Return on average equity - GAAP		(18.66		)	%	4.96			%	5.48			%	4.19			%	2.09			%	(1.17		)	%	4.44			%
Return on average equity - operating		2.51				4.96				5.48				4.19				2.25				4.29				4.27
Return on average assets reconciliation
Net income (loss) - GAAP		$	(15,337	)		$	4,052			$	4,329			$	3,230			$	1,609			$	(3,726	)		$	13,395
Merger related expenses, net of income tax		—				—				—				—				126				—				1,685
Divestiture expenses, net of income tax		—				—				—				—				—				—				187
Gain on sale of branches, net of income tax		—				—				—				—				—				—				(2,385		)
Revaluation of net deferred tax asset		17,398				—				—				—				—				17,398				—
Operating net income		$	2,061			$	4,052			$	4,329			$	3,230			$	1,735			$	13,672			$	12,882
Average assets		$	2,720,070			$	2,701,387			$	2,762,389			$	2,694,715			$	2,722,444			$	2,719,658			$	2,709,138
Return on average assets - GAAP		(2.24		)	%	0.60			%	0.63			%	0.48			%	0.24			%	(0.14		)	%	0.49			%
Return on average assets - operating		0.30				0.60				0.63				0.48				0.25				0.50				0.48
Efficiency ratio reconciliation
Noninterest income - GAAP		$	3,568			$	3,477			$	5,287			$	3,857			$	4,430			$	16,189			$	21,732
Gain on sale of branches		—				—				—				—				—				—				(3,885		)
Operating noninterest income		$	3,568			$	3,477			$	5,287			$	3,857			$	4,430			$	16,189			$	17,847
Noninterest expense - GAAP		$	20,594			$	17,504			$	17,623			$	17,744			$	18,775			$	73,465			$	73,280
Merger-related expenses		—				—				—				—				(204		)		—				(2,742		)
Divestiture expenses		—				—				—				—				—				—				(305		)
Operating noninterest expense		$	20,594			$	17,504			$	17,623			$	17,744			$	18,571			$	73,465			$	70,233
Net interest income		$	21,109			$	20,291			$	20,489			$	19,253			$	19,278			$	81,142			$	76,708
Efficiency ratio		83.45			%	73.65			%	68.37			%	76.78			%	78.33			%	75.48			%	74.28			%
Tangible common equity to tangible assets reconciliation
Total shareholders’ equity		$	308,425			$	324,754			$	319,435			$	310,967			$	303,658			$	308,425			$	303,658
Intangible assets		(24,393		)		(24,760		)		(25,151		)		(25,913		)		(26,383		)		(24,393		)		(26,383		)
Total tangible common equity		$	284,032			$	299,994			$	294,284			$	285,054			$	277,275			$	284,032			$	277,275
Total assets		$	2,891,421			$	2,638,412			$	2,702,575			$	2,802,078			$	2,727,543			$	2,891,421			$	2,727,543
Intangible assets		(24,393		)		(24,760		)		(25,151		)		(25,913		)		(26,383		)		(24,393		)		(26,383		)
Total tangible assets		$	2,867,028			$	2,613,652			$	2,677,424			$	2,776,165			$	2,701,160			$	2,867,028			$	2,701,160
Tangible common equity to tangible assets		9.91			%	11.48			%	10.99			%	10.27			%	10.27			%	9.91			%	10.27			%

Contact:	Douglas L. Williams	Patrick T. Oakes
	President and Chief Executive Officer	Executive Vice President and CFO
	404-995-6051	404-995-6079
	doug.williams@atlcapbank.com	patrick.oakes@atlcapbank.com

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