ATLANTA, April 25, 2019 (GLOBE NEWSWIRE) -- Atlantic Capital Bancshares, Inc. (NASDAQ: ACBI) announced net income from continuing operations for the quarter ended March 31, 2019 of $6.4 million, or $0.26 per diluted share, compared to $5.2 million, or $0.20 per diluted share, for the first quarter of 2018 and $7.5 million, or $0.29 per diluted share, for the fourth quarter of 2018.

On April 5, 2019, Atlantic Capital closed on the sale (the “branch sale”) of 14 branches in Tennessee and northwest Georgia, including its mortgage business. This branch divestiture included the sale of approximately $589 million in deposits and $385 million in loans. The income and expenses related to these branches are included in discontinued operations, and prior period financial information has been retrospectively adjusted for the impact of discontinued operations.

“We are pleased to report strong and sustained momentum and profit improvement from continuing operations through a period of strategic transition. With the April 5th divestiture of our residential mortgage business and 14 banking offices in Tennessee and northwest Georgia, Atlantic Capital is now fully positioned to pursue its refined strategy centered on the Atlanta market and our national commercial lines of business. We believe this strategy, combined with our continued focus on sound credit quality, disciplined expense management, and strong growth in core deposit funding, will produce improved operating performance and further enhance the value of our company,” remarked Douglas Williams, President and Chief Executive Officer.

First Quarter Highlights⁽¹⁾

• Increased tangible book value per share to $12.17, compared to $10.98 at March 31, 2018 and $11.88 at December 31, 2018. 
• Expanded taxable equivalent net interest margin from continuing operations to 3.74% compared to 3.39% in the first quarter of 2018 and 3.66% in the fourth quarter of 2018.
• Increased commercial and industrial loans held for investment $120.8 million, or 21.6% from March 31, 2018 and $34.1 million, or 21.1% annualized, from December 31, 2018. 
• Increased average deposits from continuing operations $229.0 million, or 14.6%, compared to the first quarter of 2018 and $13.7 million, or 3.1% annualized, compared to the fourth quarter of 2018.
• Repurchased 957,295 shares in the quarter totaling $17.1 million. Repurchased 1.8 million shares totaling $31.3 million since the announcement of the $85.0 million buyback program in November 2018.

Income Statement

Taxable equivalent net interest income from continuing operations totaled $20.5 million, an increase of $3.0 million, or 17%, from the first quarter of 2018 and a decrease of $640,000 from the fourth quarter of 2018. The decrease in net interest income from the fourth quarter of 2018 was primarily the result of two fewer days in the first quarter of 2019 along with a decrease in the average balance of investment securities.

Atlantic Capital expects net interest income from continuing operations in future periods to be negatively impacted as a result of the $166 million in cash paid to the buyer at the closing of the branch sale. The Company anticipates restructuring the balance sheet following the transaction with a combination of excess cash, proceeds from sold securities, FHLB borrowings and brokered deposits.

Net interest margin from continuing operations was 3.74% in the first quarter of 2019, an increase of 35 basis points from the first quarter of 2018 and an increase of 8 basis points from the fourth quarter of 2018. These increases were the result of higher loan yields partially offset by an increase in deposit rates. Following the closing of the branch sale in the second quarter of 2019, the Company anticipates the net interest margin in future quarters to range from 3.50% to 3.55%.

⁽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 15.

The yield on loans from continuing operations in the first quarter of 2019 increased 66 basis points to 5.40% from the first quarter of 2018 and increased 9 basis points from the fourth quarter of 2018. Loan yields in the first quarter of 2019 benefited from the increases in short term interest rates during 2018.

The cost of deposits from continuing operations in the first quarter of 2019 was 1.09%, an increase of 46 basis points from the first quarter of 2018 and an increase of 16 basis points from the fourth quarter of 2018. The cost of interest bearing deposits from continuing operations increased 68 basis points to 1.61% from the first quarter of 2018 and 21 basis points from the fourth quarter of 2018. The higher rates on deposits were driven by higher rates on money market accounts as a result of continued competition for deposits and the impact of increases in short term interest rates during 2018.

The provision for loan losses for continuing operations was $814,000 in the first quarter of 2019, an increase of $42,000 compared to $772,000 in the first quarter of 2018 and an increase of $312,000 compared to $502,000 in the fourth quarter of 2018. The increase in the provision was primarily due to net charge-offs. Net charge-offs in the first quarter of 2019 totaled $558,000, including a $330,000 net charge off for a Tennessee commercial loan not included in the branch sale.

Noninterest income from continuing operations totaled $2.3 million in the first quarter of 2019 compared to $3.2 million in the first quarter of 2018 and $164,000 in the fourth quarter of 2018. The first quarter of 2018 included $518,000 in trust income earned prior to the sale of Southeastern Trust Company in the second quarter of 2018. The fourth quarter of 2018 included a loss of $1.9 million on the sale of investment securities to help fund the cash owed to the buyer at the closing of the branch sale.

Noninterest expense from continuing operations totaled $13.8 million in the first quarter of 2019, an increase of $508,000 compared to the first quarter of 2018, and an increase of $1.6 million compared to the fourth quarter of 2018. Salaries and employee benefits expense totaled $9.2 million in the first quarter of 2019, and accounted for most of the increase in expenses relative to both periods. This included severance expense and seasonally higher benefits expense, including payroll taxes, 401k expense and medical insurance expense. We expect quarterly expenses from continuing operations in 2019 to be approximately $13.5 million, as we recognize any additional savings from the branch sale offset by the additional expense from hiring new bankers and opening new locations.

Balance Sheet

Total loans held for investment were $1.73 billion at March 31, 2019, an increase of $172.2 million, or 11.0%, from March 31, 2018 and an increase of $6.5 million, or 1.5% annualized, from December 31, 2018. Commercial and industrial loans increased $120.8 million, or 21.6% from March 31, 2018 and increased $34.1 million, or 21.1% annualized, from December 31, 2018. Multifamily loans decreased $44.9 million from December 31, 2018 due to an increase in loan payoffs during the quarter.

At March 31, 2019, the allowance for loan losses was $18.1 million, or 1.04% of loans held for investment, an increase of $256,000 from December 31, 2018 and a decrease of $1.8 million from March 31, 2018. The decrease from March 31, 2018 to March 31, 2019 included a $3.1 million reduction in the allowance for loan losses in the fourth quarter of 2018 due to the transfer during the fourth quarter of 2018 of the branch sale loans to held for sale.

Non-performing assets from continuing operations totaled 0.34% of total assets, as of March 31, 2019, compared to 0.11% of total assets as of March 31, 2018 and 0.14% of total assets as of December 31, 2018. The increase was primarily due to the Company placing one SBA loan totaling $3.5 million on nonaccrual status during the first quarter of 2019.

Total average deposits from continuing operations were $1.79 billion for the first quarter of 2019, an increase of $229.0 million, or 14.6%, from the first quarter of 2018 and an increase of $13.7 million, or 3.1% annualized, from the fourth quarter of 2018. Noninterest bearing deposits were 32.1% of total average deposits in the first quarter of 2019, compared to 32.1% in the first quarter of 2018 and 33.6% in the fourth quarter of 2018.

Earnings Conference Call

The Company will host a conference call at 10:00 a.m. EST on Friday, April 26, 2019, to discuss the financial results for the quarter ended March 31, 2019. 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) taxable equivalent interest income; (ii) taxable equivalent net interest 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; and (viii) tangible book value per common share, in its analysis of the Company's performance. 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, 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 “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” 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 commercial and not-for-profit banking services, specialty corporate financial services, private banking services and commercial real estate finance solutions to privately held companies and individuals in the Atlanta area, as well as specialized financial services for select clients nationally.

Media Contact:
Ashley Carson
Email: ashley.carson@atlcapbank.com
Phone: 404-995-6050

Financial Contact:
Patrick Oakes
Email: patrick.oakes@atlcapbank.com
Phone: 404-995-6050

ATLANTIC CAPITAL BANCSHARES, INC.
Selected Financial Information
		2019				2018																First Quarter 2019 to 2018 Change
(in thousands, except share and per share data; taxable equivalent)		First Quarter				Fourth Quarter				Third Quarter				Second Quarter				First Quarter
INCOME SUMMARY (1)
Interest income (2)		$	26,297			$	26,725			$	24,114			$	22,934			$	21,382			23		%
Interest expense		5,773				5,560				4,720				4,392				3,841				50
Net interest income		20,524				21,165				19,394				18,542				17,541				17
Provision for loan losses		814				502				845				(173		)		772				5
Net interest income after provision for loan losses		19,710				20,663				18,549				18,715				16,769				18
Noninterest income		2,336				164				2,255				4,466				3,162				(26	)
Noninterest expense		13,795				12,208				11,872				12,623				13,288				4
Income from continuing operations before income taxes		8,251				8,619				8,932				10,558				6,643				24
Income tax expense		1,811				1,136				1,934				2,180				1,452				25
Net income from continuing operations		6,440				7,483				6,998				8,378				5,191				24
Income (loss) from discontinued operations, net of tax		(1,063		)		1,347				(485		)		(227		)		(153		)		595
Net income		$	5,377			$	8,830			$	6,513			$	8,151			$	5,038			7		%
PER SHARE DATA
Diluted earnings per share - continuing operations		$	0.26			$	0.29			$	0.27			$	0.32			$	0.20
Diluted earnings (loss) per share - discontinued operations		(0.04		)		0.05				(0.02		)		(0.01		)		(0.01		)
Diluted earnings per share		0.21				0.34				0.25				0.31				0.19
Book value per share		13.10				12.80				12.27				12.14				11.91
Tangible book value per common share (3)		12.17				11.88				11.37				11.23				10.98
PERFORMANCE MEASURES
Return on average equity		6.80			%	10.90			%	8.07			%	10.46			%	6.66			%
Return on average assets		0.77				1.21				0.92				1.20				0.76
Taxable equivalent net interest margin - continuing operations		3.74				3.66				3.48				3.51				3.39
Efficiency ratio - continuing operations		60.61				57.50				55.09				55.10				64.50
CAPITAL
Average equity to average assets		11.34			%	11.11			%	11.41			%	11.50			%	11.34			%
Tangible common equity to tangible assets		10.51				10.25				10.38				10.99				10.50
Tier 1 capital ratio		11.0			(6)	11.5				11.8				12.0				11.3
Total risk based capital ratio		13.7			(6)	14.2				14.7				15.0				14.3
Number of common shares outstanding - basic		24,466,964				25,290,419				26,103,666				26,102,217				25,772,208
Number of common shares outstanding - diluted		24,719,273				25,480,233				26,281,849				26,336,871				26,000,216
ASSET QUALITY
Allowance for loan losses to loans held for investment (4)		1.04			%	1.03			%	1.00			%	1.01			%	1.01			%
Net charge-offs to average loans (5)		0.11				—				—				0.03				0.05
Non-performing assets to total assets		0.40				0.20				0.13				0.14				0.13
(1)On April 5, 2019, Atlantic Capital completed the sale to FirstBank of its Tennessee and northwest Georgia banking operations, including 14 branches and the mortgage business. The banking business and branches subsequently sold to FirstBank are reported as discontinued operations. Discontinued operations have been reported retrospectively for periods presented prior to December 31, 2018. (2)Interest income on tax-exempt securities has been increased to reflect comparable interest on taxable securities. The rate used was 21%, reflecting the statutory federal income tax rate. (3)Excludes effect of acquisition related intangibles. (4)The first quarter 2019 and fourth quarter 2018 ratios are calculated on a continuing operations basis. Prior period ratios have not been retroactively adjusted for the impact of discontinued operations. (5)Annualized. (6)Amounts are estimates as of 3/31/19.

ATLANTIC CAPITAL BANCSHARES, INC.
Financial Information from Discontinued Operations
Assets and Liabilities from Discontinued Operations
(in thousands)		March 31, 2019				December 31, 2018
Cash		$	4,168			$	4,234
Loans held for sale - discontinued operations		384,779				373,030
Premises held for sale - discontinued operations		7,736				7,722
Goodwill - discontinued operations		4,555				4,555
Other assets		1,158				1,405
Total assets		$	402,396			$	390,946
Deposits to be assumed - discontinued operations		$	593,264			$	585,429
Securities sold under agreements to repurchase - discontinued operations		9,821				6,220
Total liabilities		$	603,085			$	591,649
Net liabilities		$	(200,689	)		$	(200,703	)

Components of Net Income (Loss) from Discontinued Operations
		2019				2018
(in thousands)		First Quarter				Fourth Quarter				Third Quarter				Second Quarter				First Quarter
Net interest income		$	3,125			$	3,225			$	3,266			$	3,570			$	4,079
Provision for loan losses		—				(3,097		)		—				—				—
Net interest income after provision		3,125				6,322				3,266				3,570				4,079
Service charges		481				483				474				480				485
Mortgage income		288				320				315				363				304
Other income		21				47				22				22				32
Total noninterest income		790				850				811				865				821
Salaries and employee benefits		2,427				2,757				2,820				3,010				3,127
Occupancy		339				479				556				511				470
Equipment and software		123				158				217				203				201
Amortization of intangibles		247				271				296				319				343
Communications and data processing		389				440				381				346				362
Divestiture expense		1,449				825				—				—				—
Other noninterest expense		358				446				453				349				601
Total noninterest expense		5,332				5,376				4,723				4,738				5,104
Net income (loss) before provision for income taxes		(1,417		)		1,796				(646		)		(303		)		(204		)
Provision (benefit) for income taxes		(354		)		449				(161		)		(76		)		(51		)
Net income (loss) from discontinued operations		$	(1,063	)		$	1,347			$	(485	)		$	(227	)		$	(153	)

ATLANTIC CAPITAL BANCSHARES, INC.
Consolidated Balance Sheets (unaudited)
		March 31,				December 31,				March 31,
(in thousands, except share data)		2019				2018				2018
ASSETS
Cash and due from banks		$	36,992			$	42,895			$	39,985
Interest-bearing deposits in banks		76,720				216,040				62,787
Other short-term investments		29,457				9,457				9,669
Cash and cash equivalents		143,169				268,392				112,441
Investment securities available-for-sale		402,640				402,486				458,730
Other investments		28,844				29,236				37,949
Loans held for sale		1,530				5,889				835
Loans held for sale - discontinued operations(1)		384,779				373,030				397,094
Loans held for investment(1)		1,734,557				1,728,073				1,562,327
Less: allowance for loan losses(2)		(18,107		)		(17,851		)		(19,885		)
Loans held for investment, net		1,716,450				1,710,222				1,542,442
Premises held for sale - discontinued operations(1)		7,736				7,722				7,810
Premises and equipment, net(1)		23,311				9,779				7,665
Bank owned life insurance		65,486				65,149				64,014
Goodwill - discontinued operations(1)		4,555				4,555				4,555
Goodwill and intangible assets, net(1)		21,376				21,523				22,930
Other real estate owned		971				874				927
Other assets		55,040				56,583				61,273
Total assets		$	2,855,887			$	2,955,440			$	2,718,665
LIABILITIES AND SHAREHOLDERS' EQUITY
Deposits:
Noninterest-bearing demand(1)		$	561,829			$	602,252			$	472,181
Interest-bearing checking(1)		233,838				252,490				214,333
Savings(1)		896				725				3,593
Money market(1)		962,741				987,183				699,311
Time(1)		22,069				10,623				3,074
Brokered deposits		65,811				99,241				112,376
Deposits to be assumed - discontinued operations(1)		593,264				585,429				591,432
Total deposits		2,440,448				2,537,943				2,096,300
Federal funds purchased		—				—				40,000
Securities sold under agreements to repurchase - discontinued operations(1)		9,821				6,220				7,855
Federal Home Loan Bank borrowings		—				—				185,000
Long-term debt		49,746				49,704				49,577
Other liabilities		35,245				37,920				32,874
Total liabilities		2,535,260				2,631,787				2,411,606
SHAREHOLDERS' EQUITY
Preferred stock, no par value; 10,000,000 shares authorized; no shares issued and outstanding as of March 31, 2019, December 31, 2018, and March 31, 2018		—				—				—
Common stock, no par value; 100,000,000 shares authorized; 24,466,964, 25,290,419, and 25,772,208 shares issued and outstanding as of March 31, 2019, December 31, 2018, and March 31, 2018, respectively		276,346				291,771				300,893
Retained earnings		47,191				42,187				18,693
Accumulated other comprehensive (loss) income		(2,910		)		(10,305		)		(12,527		)
Total shareholders’ equity		320,627				323,653				307,059
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY		$	2,855,887			$	2,955,440			$	2,718,665
(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, and prior periods have been adjusted retrospectively. (2)The allowance for loan losses has not been adjusted retrospectively for discontinued operations in prior periods.

ATLANTIC CAPITAL BANCSHARES, INC.
Consolidated Statements of Income (unaudited) (1)
(in thousands, except share and per share data)		Three months ended
		March 31, 2019				December 31, 2018				September 30, 2018				June 30, 2018				March 31, 2018
INTEREST INCOME
Loans, including fees		$	22,752			$	22,752			$	20,117			$	19,269			$	17,972
Investment securities available-for-sale		2,631				2,844				2,789				2,687				2,592
Interest and dividends on other interest‑earning assets		814				1,032				1,111				880				715
Total interest income		26,197				26,628				24,017				22,836				21,279
INTEREST EXPENSE
Interest on deposits		4,831				4,185				3,182				2,715				2,424
Interest on Federal Home Loan Bank advances		—				487				637				766				509
Interest on federal funds purchased and securities sold under agreements to repurchase		118				60				77				88				79
Interest on long-term debt		824				828				824				823				829
Total interest expense		5,773				5,560				4,720				4,392				3,841
NET INTEREST INCOME BEFORE PROVISION FOR LOAN LOSSES		20,424				21,068				19,297				18,444				17,438
Provision for loan losses		814				502				845				(173		)		772
NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES		19,610				20,566				18,452				18,617				16,666
NONINTEREST INCOME
Service charges		794				876				804				828				707
Gains (losses) on sale of securities		—				(1,853		)		—				(2		)		—
Gains (losses) on sale of other assets		(3		)		—				58				(166		)		(46		)
Trust income		—				—				—				507				518
Derivatives income		(111		)		154				20				20				114
Bank owned life insurance		360				380				379				378				369
SBA lending activities		1,086				425				882				997				1,302
Gain on sale of trust company		—				—				—				1,681				—
Other noninterest income		210				182				112				223				198
Total noninterest income		2,336				164				2,255				4,466				3,162
NONINTEREST EXPENSE
Salaries and employee benefits		9,213				7,573				7,332				7,911				8,950
Occupancy		639				655				732				700				885
Equipment and software		739				783				747				701				586
Professional services		775				947				796				943				825
Postage, printing and supplies		48				30				55				44				37
Communications and data processing		675				772				566				657				681
Marketing and business development		226				224				211				135				140
FDIC premiums		235				157				154				143				108
Other noninterest expense		1,245				1,067				1,279				1,389				1,076
Total noninterest expense		13,795				12,208				11,872				12,623				13,288
INCOME FROM CONTINUING OPERATIONS BEFORE PROVISION FOR INCOME TAXES		8,151				8,522				8,835				10,460				6,540
Provision for income taxes		1,711				1,039				1,837				2,082				1,349
NET INCOME FROM CONTINUING OPERATIONS		6,440				7,483				6,998				8,378				5,191
DISCONTINUED OPERATIONS
Income (loss) from discontinued operations		$	(1,417	)		$	1,796			$	(646	)		$	(303	)		$	(204	)
Provision (benefit) for income taxes		(354		)		449				(161		)		(76		)		(51		)
Net income (loss) from discontinued operations		(1,063		)		1,347				(485		)		(227		)		(153		)
NET INCOME		$	5,377			$	8,830			$	6,513			$	8,151			$	5,038
Net Income (Loss) per Common Share ‑ Basic
Net income per common share - continuing operations		$	0.26			$	0.29			$	0.27			$	0.32			$	0.20
Net income (loss) per common share - discontinued operations		(0.04		)		0.05				(0.02		)		(0.01		)		(0.01		)
Net Income per Common Share ‑ Basic		0.22				0.34				0.25				0.31				0.20
Net Income (Loss) per Common Share ‑ Diluted
Net income per common share - continuing operations		$	0.26			$	0.29			$	0.27			$	0.32			$	0.20
Net income (loss) per common share - discontinued operations		(0.04		)		0.05				(0.02		)		(0.01		)		(0.01		)
Net Income per Common Share ‑ Diluted		0.21				0.34				0.25				0.31				0.19
Weighted average shares - basic		24,855,171				25,919,445				26,103,397				26,010,914				25,750,824
Weighted average shares - diluted		25,019,384				26,043,799				26,254,772				26,200,026				25,945,773
(1)Discontinued operations have been reported retrospectively for all periods presented.

ATLANTIC CAPITAL BANCSHARES, INC.
Average Balance Sheets and Net Interest Margin Analysis
Selected Financial Information
		Three months ended
		March 31, 2019												December 31, 2018
(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		$	92,168			$	463			2.04		%		$	111,988			$	638			2.26		%
Other short-term investments		11,680				86				2.99				19,078				142				2.95
Investment securities:
Taxable investment securities		320,089				2,113				2.68				376,163				2,362				2.49
Non-taxable investment securities(1)		80,012				618				3.13				74,302				579				3.09
Total investment securities		400,101				2,731				2.77				450,465				2,941				2.59
Loans - continuing operations		1,707,682				22,752				5.40				1,699,801				22,752				5.31
FHLB and FRB stock		12,528				265				8.58				15,985				252				6.25
Total interest-earning assets - continuing operations		2,224,159				26,297				4.80				2,297,317				26,725				4.62
Loans held for sale - discontinued operations		381,783				4,541				4.82				377,052				4,509				4.74
Total interest-earning assets		2,605,942				30,838				4.80				2,674,369				31,234				4.63
Non-earning assets		223,130												216,958
Total assets		$	2,829,072											$	2,891,327
Liabilities
Interest bearing deposits:
NOW, money market, and savings		1,124,350				4,255				1.53				1,079,178				3,601				1.32
Time deposits		12,847				38				1.20				10,116				33				1.29
Brokered deposits		81,141				538				2.69				93,558				551				2.34
Total interest-bearing deposits		1,218,338				4,831				1.61				1,182,852				4,185				1.40
Total borrowings		18,056				118				2.65				91,155				547				2.38
Total long-term debt		49,719				824				6.72				49,677				828				6.61
Total interest-bearing liabilities - continuing operations		1,286,113				5,773				1.82				1,323,684				5,560				1.67
Interest-bearing liabilities - discontinued operations		473,090				1,416				1.21				472,162				1,284				1.08
Total interest-bearing liabilities		1,759,203				7,189				1.66				1,795,846				6,844				1.51
Demand deposits		575,453												597,240
Demand deposits - discontinued operations		128,977												135,774
Other liabilities		44,627												41,120
Shareholders' equity		320,812												321,347
Total liabilities and shareholders' equity		$	2,829,072											$	2,891,327
Net interest spread - continuing operations										2.98		%										2.95		%
Net interest income and net interest margin - continuing operations(2)						$	20,524			3.74		%						$	21,165			3.66		%
Net interest income and net interest margin(2)						$	23,649			3.68		%						$	24,390			3.62		%
Non-taxable equivalent net interest margin										3.66		%										3.60		%
(1) Interest revenue on tax-exempt securities has been increased to reflect comparable interest on taxable securities. The rate used was 21%, reflecting the statutory federal income tax rates.
(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
		Three months ended
		March 31, 2019												March 31, 2018
(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		$	92,168			$	463			2.04		%		$	78,207			$	397			2.06		%
Other short-term investments		11,680				86				2.99				10,346				63				2.47
Investment securities:
Taxable investment securities		320,089				2,113				2.68				375,771				2,116				2.28
Non-taxable investment securities(1)		80,012				618				3.13				78,146				579				3.00
Total investment securities		400,101				2,731				2.77				453,917				2,695				2.41
Loans - continuing operations		1,707,682				22,752				5.40				1,536,636				17,972				4.74
FHLB and FRB stock		12,528				265				8.58				17,895				255				5.78
Total interest-earning assets - continuing operations		2,224,159				26,297				4.80				2,097,001				21,382				4.14
Loans held for sale - discontinued operations		381,783				4,541				4.82				402,317				4,703				4.74
Total interest-earning assets		2,605,942				30,838				4.80				2,499,318				26,085				4.23
Non-earning assets		223,130												205,504
Total assets		$	2,829,072											$	2,704,822
Liabilities
Interest bearing deposits:
NOW, money market, and savings		1,124,350				4,255				1.53				934,415				1,917				0.83
Time deposits		12,847				38				1.20				9,800				28				1.16
Brokered deposits		81,141				538				2.69				117,787				479				1.65
Total interest-bearing deposits		1,218,338				4,831				1.61				1,062,002				2,424				0.93
Total borrowings		18,056				118				2.65				151,946				588				1.57
Total long-term debt		49,719				824				6.72				49,550				829				6.79
Total interest-bearing liabilities - continuing operations		1,286,113				5,773				1.82				1,263,498				3,841				1.23
Interest-bearing liabilities - discontinued operations		473,090				1,416				1.21				458,029				624				0.55
Total interest-bearing liabilities		1,759,203				7,189				1.66				1,721,527				4,465				1.05
Demand deposits		575,453												502,829
Demand deposits - discontinued operations		128,977												135,901
Other liabilities		44,627												37,744
Shareholders' equity		320,812												306,821
Total liabilities and shareholders' equity		$	2,829,072											$	2,704,822
Net interest spread - continuing operations										2.98		%										2.90		%
Net interest income and net interest margin - continuing operations(2)						$	20,524			3.74		%						$	17,541			3.39		%
Net interest income and net interest margin(2)						$	23,649			3.68		%						$	21,620			3.51		%
Non-taxable equivalent net interest margin										3.66		%										3.49		%
(1) Interest revenue on tax-exempt securities has been increased to reflect comparable interest on taxable securities. The rate used was 21%, reflecting the statutory federal income tax rate.
(2) Tax equivalent net interest income divided by total interest-earning assets using the appropriate day count convention based on the type of interest-earning asset.

ATLANTIC CAPITAL BANCSHARES, INC.
Period End Loans(1)
(dollars in thousands)		March 31, 2019				December 31, 2018				September 30, 2018				June 30, 2018				March 31, 2018				Linked Quarter Change				Year Over Year Change
Loans held for sale
Loans held for sale		$	1,530			$	5,889			$	1,886			$	1,612			$	835			$	(4,359	)		$	695
Loans held for sale - discontinued operations		384,779				373,030				375,976				382,732				397,094				11,749				(12,315		)
Total loans held for sale		$	386,309			$	378,919			$	377,862			$	384,344			$	397,929			$	7,390			$	(11,620	)
Loans held for investment
Commercial loans:
Commercial and industrial		$	679,489			$	645,374			$	581,737			$	546,497			$	558,654			$	34,115			$	120,835
Commercial real estate:
Multifamily		43,929				88,826				108,001				92,013				92,016				(44,897		)		(48,087		)
Owner occupied		304,945				298,291				295,801				265,576				260,270				6,654				44,675
Investment		394,087				407,711				409,145				386,072				389,410				(13,624		)		4,677
Construction and land:
1-4 family residential construction		2,067				1,006				—				378				287				1,061				1,780
Other construction, development, and land		171,818				155,226				147,114				134,764				131,466				16,592				40,352
Mortgage warehouse loans		22,267				27,967				27,838				38,352				44,575				(5,700		)		(22,308		)
Total commercial loans		1,618,602				1,624,401				1,569,636				1,463,652				1,476,678				(5,799		)		141,924
Residential:
Residential mortgages		32,915				32,800				24,904				20,270				19,446				115				13,469
Home equity		23,171				22,822				33,410				32,638				34,673				349				(11,502		)
Total residential loans		56,086				55,622				58,314				52,908				54,119				464				1,967
Consumer		35,203				25,851				26,825				25,531				23,214				9,352				11,989
Other		26,663				24,712				10,579				12,409				11,769				1,951				14,894
		1,736,554				1,730,586				1,665,354				1,554,500				1,565,780				5,968				170,774
Less net deferred fees and other unearned income		(1,997		)		(2,513		)		(2,896		)		(2,921		)		(3,453		)		516				1,456
Total loans held for investment		$	1,734,557			$	1,728,073			$	1,662,458			$	1,551,579			$	1,562,327			$	6,484			$	172,230
Total loans		$	2,120,866			$	2,106,992			$	2,040,320			$	1,935,923			$	1,960,256			$	13,874			$	160,610
(1)Loans held for sale-discontinued operations and loans held for investment have been reported retrospectively for all periods prior to December 31, 2018.

ATLANTIC CAPITAL BANCSHARES, INC.
Allowance for Loan Losses Activity and Credit Quality
		2019				2018
(dollars in thousands)		First Quarter				Fourth Quarter				Third Quarter				Second Quarter				First Quarter
Balance at beginning of period		$	17,851			$	20,443			$	19,583			$	19,885			$	19,344
Provision for loan losses		814				595				758				(173		)		811
Provision for loan losses (reversal of provision) - discontinued operations		—				(3,097		)		—				—				—
Provision for PCI loan losses		—				(93		)		87				—				(39		)
Loans charged-off:
Commercial and industrial		(549		)		—				—				—				(126		)
Commercial real estate		—				—				—				(50		)		—
Construction and land		—				—				—				—				—
Residential mortgages		(9		)		(5		)		—				—				(70		)
Home equity		—				—				—				(102		)		(58		)
Consumer		(37		)		(3		)		—				(10		)		(3		)
Other		—				—				—				—				—
Total loans charged-off		(595		)		(8		)		—				(162		)		(257		)
Recoveries on loans previously charged-off:
Commercial and industrial		14				—				—				—				19
Commercial real estate		—				—				—				28				—
Construction and land		3				—				—				—				—
Residential mortgages		7				4				—				—				—
Home equity		1				—				—				—				—
Consumer		12				7				15				5				7
Other		—				—				—				—				—
Total recoveries		37				11				15				33				26
Net charge-offs		$	(558	)		$	3			$	15			$	(129	)		$	(231	)
Balance at period end (1)		$	18,107			$	17,851			$	20,443			$	19,583			$	19,885
Loans
Loans held for sale		$	1,530			$	5,889			$	1,886			$	1,612			$	835
Loans held for sale - discontinued operations		384,779				373,030				375,976				382,732				397,094
Loans held for investment - continuing operations		1,734,557				1,728,073				1,662,458				1,551,579				1,562,327
Total loans		$	2,120,866			$	2,106,992			$	2,040,320			$	1,935,923			$	1,960,256
Non-performing loans - continuing operations (4)		$	8,830			$	3,252			$	2,160			$	1,697			$	1,941
Non-performing loans - discontinued operations (4)		1,506				1,924				556				709				560
Total non-performing loans		10,336				5,176				2,716				2,406				2,501
Foreclosed properties (OREO)		971				874				968				1,288				927
Total nonperforming assets		$	11,307			$	6,050			$	3,684			$	3,694			$	3,428
Allowance for loan losses to loans held for investment (2)		1.04			%	1.03			%	1.00			%	1.01			%	1.01			%
Net charge-offs to average loans (3)		0.11				—				—				0.03				0.05
Non-performing loans as a percentage of total loans - continuing operations (4)		0.51			%	0.19			%	0.13			%	0.11			%	0.12			%
Non-performing loans as a percentage of total loans - discontinued operations (4)		0.39				0.52				0.15				0.19				0.14
Non-performing loans as a percentage of total loans (4)		0.49				0.25				0.13				0.12				0.13
Non-performing assets as a percentage of total assets - continuing operations (4)		0.34			%	0.14			%	0.11			%	0.11			%	0.11			%
Non-performing assets as a percentage of total assets - discontinued operations (4)		0.05				0.07				0.02				0.03				0.02
Non-performing assets as a percentage of total assets (4)		0.40				0.20				0.13				0.14				0.13
(1) The allowance for loan losses has not been adjusted retrospectively in periods prior to December 31, 2018. (2) The first quarter 2019 and fourth quarter 2018 ratios are calculated on a continuing operations basis. Prior period ratios have not been retroactively adjusted for the impact of discontinued operations. (3) Annualized. (4) Excludes non-performing PCI loans.

ATLANTIC CAPITAL BANCSHARES, INC.
Period End Deposits
(dollars in thousands)		March 31, 2019				December 31, 2018				September 30, 2018				June 30, 2018				March 31, 2018				Linked Quarter Change				Year Over Year Change
DDA		$	561,829			$	602,252			$	518,155			$	464,282			$	472,181			$	(40,423	)		$	89,648
NOW		233,838				252,490				407,214				241,461				214,333				(18,652		)		19,505
Savings		896				725				698				951				3,593				171				(2,697		)
Money market		962,741				987,183				759,583				647,247				699,311				(24,442		)		263,430
Time		22,069				10,623				10,396				10,359				3,074				11,446				18,995
Brokered		65,811				99,241				79,119				92,656				112,376				(33,430		)		(46,565		)
Total deposits - continuing operations		1,847,184				1,952,514				1,775,165				1,456,956				1,504,868				(105,330		)		342,316
Deposits to be assumed - discontinued operations		593,264				585,429				604,659				609,631				591,432				7,835				1,832
Total deposits		$	2,440,448			$	2,537,943			$	2,379,824			$	2,066,587			$	2,096,300			$	(97,495	)		$	344,148
Payments clients		$	361,192			$	397,608			$	258,320			$	251,748			$	311,943			$	(36,416	)		$	49,249
Average Deposits
		2019				2018																Linked Quarter Change				Q1 2019 vs Q1 2018
(dollars in thousands)		First Quarter				Fourth Quarter				Third Quarter				Second Quarter				First Quarter
DDA		$	575,453			$	597,239			$	561,355			$	489,722			$	502,829			$	(21,786	)		$	72,624
NOW		276,212				280,449				314,759				287,283				236,796				(4,237		)		39,416
Savings		884				712				616				674				527				172				357
Money market		847,254				798,017				697,578				645,034				697,092				49,237				150,162
Time		12,847				10,117				10,406				9,855				9,800				2,730				3,047
Brokered		81,141				93,558				67,937				100,425				117,787				(12,417		)		(36,646		)
Total deposits - continuing operations		1,793,791				1,780,092				1,652,651				1,532,993				1,564,831				13,699				228,960
Deposits to be assumed - discontinued operations		593,313				600,769				601,421				602,832				589,054				(7,456		)		4,259
Total deposits		$	2,387,104			$	2,380,861			$	2,254,072			$	2,135,825			$	2,153,885			$	6,243			$	233,219
Payments clients		$	295,059			$	263,800			$	227,029			$	219,016			$	256,794			$	31,259			$	38,265
Noninterest bearing deposits as a percentage of average deposits - continuing operations		32.1		%		33.6		%		34.0		%		31.9		%		32.1		%
Cost of deposits - continuing operations		1.09		%		0.93		%		0.76		%		0.71		%		0.63		%

ATLANTIC CAPITAL BANCSHARES, INC.
Non-GAAP Performance and Financial Measures Reconciliation
		2019				2018
(in thousands, except share and per share data)		First Quarter				Fourth Quarter				Third Quarter				Second Quarter				First Quarter
Taxable equivalent interest income reconciliation
Interest income - GAAP		$	26,197			$	26,628			$	24,017			$	22,836			$	21,279
Taxable equivalent adjustment		100				97				97				98				103
Interest income - taxable equivalent		$	26,297			$	26,725			$	24,114			$	22,934			$	21,382
Taxable equivalent net interest income reconciliation
Net interest income - GAAP		$	20,424			$	21,068			$	19,297			$	18,444			$	17,438
Taxable equivalent adjustment		100				97				97				98				103
Net interest income - taxable equivalent		$	20,524			$	21,165			$	19,394			$	18,542			$	17,541
Taxable equivalent net interest margin reconciliation
Net interest margin - GAAP		3.66			%	3.60			%	3.45			%	3.52			%	3.49			%
Impact of taxable equivalent adjustment		0.02				0.02				0.02				0.02				0.02
Net interest margin - taxable equivalent		3.68			%	3.62			%	3.47			%	3.54			%	3.51			%
Income before income taxes reconciliation
Income before income taxes - GAAP		$	8,151			$	8,522			$	8,835			$	10,460			$	6,540
Taxable equivalent adjustment		100				97				97				98				103
Income before income taxes		$	8,251			$	8,619			$	8,932			$	10,558			$	6,643
Income tax reconciliation
Income tax expense - GAAP		$	1,711			$	1,039			$	1,837			$	2,082			$	1,349
Taxable equivalent adjustment		100				97				97				98				103
Income tax expense		$	1,811			$	1,136			$	1,934			$	2,180			$	1,452
Tangible book value per common share reconciliation
Total shareholders’ equity		$	320,627			$	323,653			$	320,237			$	316,770			$	307,059
Intangible assets		(22,848		)		(23,095		)		(23,367		)		(23,662		)		(24,050		)
Total tangible common equity		$	297,779			$	300,558			$	296,870			$	293,108			$	283,009
Common shares outstanding		24,466,964				25,290,419				26,103,666				26,102,217				25,772,208
Book value per common share - GAAP		$	13.10			$	12.80			$	12.27			$	12.14			$	11.91
Tangible book value		12.17				11.88				11.37				11.23				10.98
Tangible common equity to tangible assets reconciliation
Total shareholders’ equity		$	320,627			$	323,653			$	320,237			$	316,770			$	307,059
Intangible assets		(22,848		)		(23,095		)		(23,367		)		(23,662		)		(24,050		)
Total tangible common equity		$	297,779			$	300,558			$	296,870			$	293,108			$	283,009
Total assets		$	2,855,887			$	2,955,440			$	2,882,721			$	2,690,674			$	2,718,665
Intangible assets		(22,848		)		(23,095		)		(23,367		)		(23,662		)		(24,050		)
Total tangible assets		$	2,833,039			$	2,932,345			$	2,859,354			$	2,667,012			$	2,694,615
Tangible common equity to tangible assets		10.51			%	10.25			%	10.38			%	10.99			%	10.50			%