ATLANTA, Jan. 31, 2019 (GLOBE NEWSWIRE) — Atlantic Capital Bancshares, Inc. (NASDAQ: ACBI) announced earnings of $8.8 million, or $0.34 per diluted share, for the fourth quarter of 2018, compared to $6.5 million, or $0.25 per diluted share, in the third quarter of 2018.  Net income for 2018 was $28.5 million, or $1.09 per diluted share, compared to a loss of $3.7 million, or ($0.15) per diluted share, for 2017.

On November 14, 2018, Atlantic Capital announced the sale of fourteen branches in Tennessee and northwest Georgia and the mortgage business. This branch divestiture includes the sale of approximately $585 million in deposits and $373 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.  Subject to customary closing conditions, including the receipt of all necessary regulatory approvals, the transaction is expected to be completed during the second quarter of 2019.

“Atlantic Capital’s results in the fourth quarter of 2018 and for all of 2018 reflect continued strength in our core Atlanta and national commercial businesses.  We begin 2019 with solid momentum and good prospects for strong operating performance in our continuing operations,” remarked Douglas Williams, President and Chief Executive Officer.

Fourth Quarter Highlights⁽¹⁾

• Return on average assets of 1.21% and return on average equity of 10.90%.
• Net income from continuing operations totaled $7.5 million, or $0.29 per diluted share, compared to $7.0 million, or $0.27 per diluted share in the third quarter of 2018.
• Net interest margin from continuing operations was 3.66% compared to 3.48% for the third quarter of 2018.
• Total loans held for investment increased $65.7 million, or 15.8% annualized, compared to September 30, 2018.
• Average deposits from continuing operations increased $127.4 million, or 30.8% annualized, compared to the third quarter of 2018.
• 822,100 shares were repurchased in the fourth quarter totaling $14.2 million.
• Noninterest income includes a $1.9 million loss on the sale of securities that were sold in the fourth quarter to help fund the cash owed to the buyer at the upcoming closing of the branch sale.
• Provision for income taxes includes a $996,000 net benefit as a result of the pending transaction. 

2018 Highlights

• Net income from continuing operations totaled $28.1 million, or $1.07 per diluted share, compared to a loss of $4.8 million, or ($0.19) per diluted share in 2017.
• Efficiency ratio – continuing operations improved to 57.9% from 70.4% in 2017.
• Total loans held for investment increased $209.6 million, or 13.8%, compared to December 31, 2017.
• Average deposits from continuing operations in the fourth quarter of 2018 increased $177 million, or 11.0%, compared to the fourth quarter of 2017.
• Net charge-offs to average loans totaled 0.02% compared to 0.23% in 2017.

⁽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 for 2018 and 35% for 2017 and prior. We provide detailed reconciliations in the Non-GAAP Performance and Financial Measures Reconciliation table.

Income Statement

Taxable equivalent net interest income from continuing operations increased to $21.2 million in the fourth quarter of 2018 from $19.4 million in the third quarter of 2018, primarily as a result of higher loan balances and an increase in loan yields offset by an increase in the cost of interest bearing deposits. Net interest income from continuing operations does not currently reflect the planned decrease in net interest income necessary to fund the cash amount owed to the buyer at the closing of the branch sale in the second quarter of 2019.  The Company anticipates funding the transaction with a combination of brokered deposits and proceeds from sold securities.

Net interest margin from continuing operations was 3.66% in the fourth quarter of 2018, an increase of 18 basis points from the third quarter of 2018, as a result of an increase in loan yields partially offset by higher cost of deposits.  Following the close of the branch transaction in the second quarter of 2019, the Company anticipates the net interest margin to range from 3.50% to 3.55%.

The yield on loans from continuing operations in the fourth quarter of 2018 increased 27 basis points to 5.31% from the third quarter of 2018.  Loan yields benefited from increases in 1 month LIBOR during the fourth quarter of 2018.

The cost of deposits from continuing operations in the fourth quarter of 2018 was 0.93%, an increase of 17 basis points from the third quarter of 2018. The cost of interest bearing deposits from continuing operations increased 24 basis points to 1.40% from the third quarter of 2018, driven by the increase in rates on money market accounts.

The provision for loan losses for continuing operations was $502,000 in the fourth quarter of 2018, a decrease compared to $845,000 in the third quarter of 2018.  The Company recorded negative provision for loan losses totaling $3.1 million included in discontinued operations, primarily due to the classification of $373 million of loans to held for sale.

Noninterest income from continuing operations totaled $164,000 in the fourth quarter of 2018 compared to $2.3 million in the third quarter of 2018. The fourth quarter included a loss of $1.9 million on the sale of $63 million in investment securities to help fund the cash owed to the buyer at the closing of the upcoming branch sale.

SBA income totaled $425,000 in the fourth quarter of 2018, a decrease of $457,000 from the third quarter of 2018, partly as a result of the impact on the sale of SBA loans in December from the shutdown of the Small Business Administration. As of December 31, 2018, loans held for sale included $3.6 million in SBA 7a loans that the Company intends to sell.

Noninterest expense from continuing operations totaled $12.2 million in the fourth quarter of 2018, an increase of $336,000 compared to $11.9 million in the third quarter of 2018. Salaries and employee benefits expense increased by $241,000 from the third quarter of 2018 to $7.6 million in the fourth quarter, primarily from an increase in incentive expense.  Compared to the third quarter of 2018, professional fees increased $151,000 in the fourth quarter due to higher consulting fees.

Income tax expense related to continuing operations totaled $1.1 million in the fourth quarter of 2018, compared to $1.9 million in the third quarter of 2018.  In the fourth quarter of 2018, the Company recorded a $4.5 million favorable reduction of the valuation allowance on Federal deferred tax assets related to the limitations under Section 382 of the Internal Revenue Code.  This reduction was offset by an unfavorable increase of $3.5 million in the valuation allowance related to state net operating losses and carryforwards that are not expected to be utilized.

Balance Sheet

Total loans held for investment were $1.73 billion at December 31, 2018, an increase of $65.7 million, or 15.8% annualized, from September 30, 2018.  This included growth of $66.2 million, or 30.2% annualized, in commercial and industrial and owner occupied commercial real estate loans from September 30, 2018.

At December 31, 2018, the allowance for loan losses was $17.9 million, or 1.03% of loans held for investment, a decrease of $2.6 million from the $20.4 million allowance at September 30, 2018.  This decrease included a $3.1 million reduction in the allowance for loan losses due to the transfer of the branch sale loans to held for sale.

Annualized net charge-offs to average loans were 0.00% in the fourth quarter of 2018, unchanged from the third quarter of 2018. Nonperforming assets from continuing operations totaled $4.1 million, or 0.14% of total assets, as of December 30, 2018, compared to $3.1 million, or 0.11% of total assets, as of September 30, 2018.

Total average deposits from continuing operations were $1.78 billion for the fourth quarter of 2018, an increase of $127.4 million from the third quarter of 2018. This included increases in large, year-end deposits that the Company anticipates will decrease in the first quarter of 2019.

Earnings Conference Call

The Company will host a conference call at 10:00 a.m. EST on Friday, February 1, 2019, to discuss the financial results for the quarter ended December 31, 2018. 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 $2.96 billion publicly traded bank holding company headquartered in Atlanta, Georgia. Atlantic Capital offers banking, treasury management, capital markets 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.

Media Contact:
Ashley Carson
Email: [email protected]
Phone: 404-995-6050

Financial Contact:
Patrick Oakes
Email: [email protected]
Phone: 404-995-6050

ATLANTIC CAPITAL BANCSHARES, INC.
Selected Financial Information
		2018																2017				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				2018				2017
INCOME SUMMARY (1)
Interest income (2)		$	26,725			$	24,114			$	22,934			$	21,382			$	20,383			$	95,155			$	76,724
Interest expense		5,560				4,720				4,392				3,841				3,454				18,513				12,986
Net interest income		21,165				19,394				18,542				17,541				16,929				76,642				63,738
Provision for loan losses		502				845				(173		)		772				282				1,946				3,218
Net interest income after provision for loan losses		20,663				18,549				18,715				16,769				16,647				74,696				60,520
Noninterest income		164				2,255				4,466				3,162				2,748				10,047				12,179
Noninterest expense		12,208				11,872				12,623				13,288				15,333				49,991				52,834
Income from continuing operations before income taxes		8,619				8,932				10,558				6,643				4,062				34,752				19,865
Income tax expense		1,136				1,934				2,180				1,452				19,370				6,702				24,621
Net income (loss) from continuing operations		7,483				6,998				8,378				5,191				(15,308		)		28,050				(4,756		)
Income (loss) from discontinued operations, net of tax		1,347				(485		)		(227		)		(153		)		(29		)		482				1,030
Net income (loss)		$	8,830			$	6,513			$	8,151			$	5,038			$	(15,337	)		$	28,532			$	(3,726	)
PER SHARE DATA
Diluted earnings (loss) per share – continuing operations		$	0.29			$	0.27			$	0.32			$	0.20			$	(0.60	)		$	1.07			$	(0.19	)
Diluted earnings (loss) per share – discontinued operations		0.05				(0.02		)		(0.01		)		(0.01		)		—				0.02				0.04
Diluted earnings (loss) per share		0.34				0.25				0.31				0.19				(0.60		)		1.09				(0.15		)
Book value per share		12.80				12.27				12.14				11.91				11.99				12.80				11.99
Tangible book value per common share (3)		11.88				11.37				11.23				10.98				11.05				11.88				11.05
PERFORMANCE MEASURES
Return on average equity		10.90			%	8.07			%	10.46			%	6.66			%	(18.66		)	%	9.05			%	(1.17		)	%
Return on average assets		1.21				0.92				1.20				0.76				(2.24		)		1.03				(0.14		)
Taxable equivalent net interest margin – continuing operations		3.66				3.48				3.51				3.39				3.23				3.50				3.07
Efficiency ratio – continuing operations		57.50				55.09				55.10				64.50				78.78				57.93				70.44
CAPITAL
Average equity to average assets		11.11			%	11.41			%	11.50			%	11.34			%	11.99			%	11.34			%	11.72			%
Tangible common equity to tangible assets		10.25				10.38				10.99				10.50				9.91				10.25				9.91
Tier 1 capital ratio		11.5			(6)	11.8				12.0				11.3				11.2				11.5			(6)	11.2
Total risk based capital ratio		14.2			(6)	14.7				15.0				14.3				14.1				14.2			(6)	14.1
Number of common shares outstanding – basic		25,290,419				26,103,666				26,102,217				25,772,208				25,712,909				25,290,419				25,712,909
Number of common shares outstanding – diluted		25,480,233				26,281,849				26,336,871				26,000,216				25,891,225				25,480,233				25,891,225
ASSET QUALITY
Allowance for loan losses to loans held for investment (4)		1.03			%	1.00			%	1.01			%	1.01			%	1.00			%	1.03			%	1.00			%
Net charge-offs to average loans (5)		—				—				0.03				0.05				(0.04		)		0.02				0.23
Non-performing assets to total assets		0.20				0.13				0.14				0.13				0.14				0.20				0.14
(1)On November 14, 2018, Atlantic Capital entered into an agreement with FirstBank to sell its Tennessee and northwest Georgia banking operations, including 14 branches and the mortgage business. The banking business and branches to be sold to FirstBank are reported as discontinued operations.  Discontinued operations have been reported retrospectively for all periods presented. (2)Interest income on tax-exempt securities has been increased to reflect comparable interest on taxable securities. The rate used was 21% for all periods ending in 2018 and 35% for all periods ending in 2017, reflecting the statutory federal income tax rates.  (3)Excludes effect of acquisition related intangibles.  (4)The fourth quarter 2018 ratio is 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 12/31/18.

ATLANTIC CAPITAL BANCSHARES, INC.
Financial Information from Discontinued Operations
Assets and Liabilities from Discontinued Operations
(in thousands)		December 31, 2018
Cash		$	4,234
Loans held for sale – discontinued operations		373,030
Premises held for sale – discontinued operations		7,722
Goodwill – discontinued operations		6,290
Other assets		1,405
Total assets		$	392,681
Deposits to be assumed – discontinued operations		$	585,429
Securities sold under agreements to repurchase – discontinued operations		6,220
Total liabilities		$	591,649
Net liabilities		$	(198,968	)

Components of Net Income (Loss) from Discontinued Operations
		2018																2017				For the year ended December 31,
(in thousands)		Fourth Quarter				Third Quarter				Second Quarter				First Quarter				Fourth Quarter				2018				2017
Net interest income		$	3,225			$	3,266			$	3,570			$	4,079			$	4,393			$	14,140			$	18,310
Provision for loan losses		(3,097		)		—				—				—				—				(3,097		)		—
Net interest income after provision		6,322				3,266				3,570				4,079				4,393				17,237				18,310
Service charges		483				474				480				485				484				1,922				2,342
Mortgage income		320				315				363				304				290				1,302				1,255
Other income		47				22				22				32				46				123				413
Total noninterest income		850				811				865				821				820				3,347				4,010
Salaries and employee benefits		2,757				2,820				3,010				3,127				3,300				11,714				12,245
Occupancy		479				556				511				470				523				2,016				2,073
Equipment and software		158				217				203				201				193				779				1,108
Amortization of intangibles		271				296				319				343				367				1,229				1,653
Communications and data processing		440				381				346				362				394				1,529				1,524
Divestiture expense		825				—				—				—				—				825				—
Other noninterest expense		446				453				349				601				484				1,849				2,028
Total noninterest expense		5,376				4,723				4,738				5,104				5,261				19,941				20,631
Net income (loss) before provision for income taxes		1,796				(646		)		(303		)		(204		)		(48		)		643				1,689
Provision (benefit) for income taxes		449				(161		)		(76		)		(51		)		(19		)		161				659
Net income (loss) from discontinued operations		$	1,347			$	(485	)		$	(227	)		$	(153	)		$	(29	)		$	482			$	1,030

ATLANTIC CAPITAL BANCSHARES, INC.
Consolidated Balance Sheets (unaudited)
		December 31,				September 30,				December 31,
(in thousands, except share data)		2018				2018				2017
ASSETS
Cash and due from banks		$	42,895			$	28,007			$	38,086
Interest-bearing deposits in banks		216,040				140,682				281,247
Other short-term investments		9,457				20,898				10,681
Cash and cash equivalents		268,392				189,587				330,014
Investment securities available-for-sale		402,486				465,756				449,117
Other investments		29,236				33,021				32,174
Loans held for sale		5,889				1,886				1,487
Loans held for sale – discontinued operations(1)		373,030				376,081				415,335
Loans held for investment(1)		1,728,073				1,662,353				1,518,504
Less: allowance for loan losses(2)		(17,851		)		(20,443		)		(19,344		)
Loans held for investment, net		1,710,222				1,641,910				1,499,160
Premises held for sale – discontinued operations(1)		7,722				7,158				7,958
Premises and equipment, net(1)		9,779				10,213				4,096
Bank owned life insurance		65,149				64,769				63,667
Goodwill – discontinued operations(1)		6,290				6,290				6,310
Goodwill and intangible assets, net(1)		19,788				20,267				21,323
Other real estate owned		874				968				1,215
Other assets		56,583				64,815				59,565
Total assets		$	2,955,440			$	2,882,721			$	2,891,421
LIABILITIES AND SHAREHOLDERS’ EQUITY
Deposits:
Noninterest-bearing demand		$	602,252			$	518,155			$	596,328
Interest-bearing checking		252,490				407,214				203,113
Savings		725				698				530
Money market		987,183				759,583				925,536
Time		10,623				10,396				10,812
Brokered deposits		99,241				79,119				128,816
Deposits to be assumed – discontinued operations(1)		585,429				604,659				585,530
Total deposits		2,537,943				2,379,824				2,450,665
Securities sold under agreements to repurchase – discontinued operations(1)		6,220				8,904				—
Federal Home Loan Bank borrowings		—				83,000				45,000
Long-term debt		49,704				49,662				49,535
Other liabilities		37,920				41,094				37,796
Total liabilities		2,631,787				2,562,484				2,582,996
SHAREHOLDERS’ EQUITY
Preferred stock, no par value;  10,000,000 shares authorized; no shares issued and outstanding as of December 31, 2018, September 30, 2018, and December 31, 2017		—				—				—
Common stock, no par value; 100,000,000 shares authorized; 25,290,419, 26,103,666, and 25,712,909 shares issued and outstanding as of December 31, 2018, September 30, 2018, and December 31, 2017, respectively		291,771				305,300				299,474
Retained earnings		42,187				33,357				12,810
Accumulated other comprehensive (loss) income		(10,305		)		(18,420		)		(3,859		)
Total shareholders’ equity		323,653				320,237				308,425
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY		$	2,955,440			$	2,882,721			$	2,891,421
(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																				Year ended
		December 31, 2018				September 30, 2018				June 30, 2018				March 31, 2018				December 31, 2017				December 31, 2018				December 31, 2017
INTEREST INCOME
Loans, including fees		$	22,752			$	20,117			$	19,269			$	17,972			$	17,076			$	80,110			$	64,436
Investment securities available-for-sale		2,844				2,789				2,687				2,592				2,510				10,912				9,181
Interest and dividends on other interest‑earning assets		1,032				1,111				880				715				584				3,738				2,201
Total interest income		26,628				24,017				22,836				21,279				20,170				94,760				75,818
INTEREST EXPENSE
Interest on deposits		4,185				3,182				2,715				2,424				2,282				12,506				7,934
Interest on Federal Home Loan Bank advances		487				637				766				509				323				2,399				1,536
Interest on federal funds purchased and securities sold under agreements to repurchase		60				77				88				79				26				304				222
Interest on long-term debt		828				824				823				829				823				3,304				3,294
Total interest expense		5,560				4,720				4,392				3,841				3,454				18,513				12,986
NET INTEREST INCOME BEFORE PROVISION FOR LOAN LOSSES		21,068				19,297				18,444				17,438				16,716				76,247				62,832
Provision for loan losses		502				845				(173		)		772				282				1,946				3,218
NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES		20,566				18,452				18,617				16,666				16,434				74,301				59,614
NONINTEREST  INCOME
Service charges		876				804				828				707				722				3,215				2,734
Gains (losses) on sale of securities		(1,853		)		—				(2		)		—				17				(1,855		)		(63		)
Gains (losses) on sale of other assets		—				58				(166		)		(46		)		(46		)		(154		)		742
Trust income		—				—				507				518				482				1,025				1,814
Derivatives income		154				20				20				114				94				308				156
Bank owned life insurance		380				379				378				369				384				1,506				1,530
SBA lending activities		425				882				997				1,302				843				3,606				4,129
Gain on sale of trust company		—				—				1,681				—				—				1,681				—
Other noninterest income		182				112				223				198				252				715				1,137
Total noninterest income		164				2,255				4,466				3,162				2,748				10,047				12,179
NONINTEREST EXPENSE
Salaries and employee benefits		7,573				7,332				7,911				8,950				9,998				31,766				33,130
Occupancy		655				732				700				885				633				2,972				2,516
Equipment and software		783				747				701				586				679				2,817				2,341
Professional services		947				796				943				825				1,205				3,511				4,591
Postage, printing and supplies		30				55				44				37				84				166				244
Communications and data processing		772				566				657				681				717				2,676				2,625
Marketing and business development		224				211				135				140				150				710				798
FDIC premiums		157				154				143				108				156				562				697
Merger and conversion costs		—				—				—				—				—				—				304
Other noninterest expense		1,067				1,279				1,389				1,076				1,711				4,811				5,588
Total noninterest expense		12,208				11,872				12,623				13,288				15,333				49,991				52,834
INCOME FROM CONTINUING OPERATIONS BEFORE PROVISION FOR INCOME TAXES		8,522				8,835				10,460				6,540				3,849				34,357				18,959
Provision for income taxes		1,039				1,837				2,082				1,349				19,157				6,307				23,715
NET INCOME (LOSS) FROM CONTINUING OPERATIONS		7,483				6,998				8,378				5,191				(15,308		)		28,050				(4,756		)
DISCONTINUED OPERATIONS
Income (loss) from discontinued operations		$	1,796			$	(646	)		$	(303	)		$	(204	)		$	(48	)		$	643			$	1,689
Provision (benefit) for income taxes		449				(161		)		(76		)		(51		)		(19		)		161				659
Net income (loss) from discontinued operations		1,347				(485		)		(227		)		(153		)		(29		)		482				1,030
NET INCOME (LOSS)		$	8,830			$	6,513			$	8,151			$	5,038			$	(15,337	)		$	28,532			$	(3,726	)
Net Income (Loss) per Common Share ‑ Basic
Net income (loss) per common share – continuing operations		$	0.29			$	0.27			$	0.32			$	0.20			$	(0.60	)		$	1.08			$	(0.19	)
Net income (loss) per common share – discontinued operations		0.05				(0.02		)		(0.01		)		(0.01		)		—				0.02				0.04
Net Income (Loss) per Common Share ‑ Basic		$	0.34			$	0.25			$	0.31			$	0.19			$	(0.60	)		$	1.10			$	(0.15	)
Net Income (Loss) per Common Share ‑ Diluted
Net income (loss) per common share – continuing operations		$	0.29			$	0.27			$	0.32			$	0.20			$	(0.60	)		$	1.07			$	(0.19	)
Net income (loss) per common share – discontinued operations		0.05				(0.02		)		(0.01		)		(0.01		)		—				0.02				0.04
Net Income (Loss) per Common Share ‑ Diluted		$	0.34			$	0.25			$	0.31			$	0.19			$	(0.60	)		$	1.09			$	(0.15	)
Weighted average shares – basic		25,919,445				26,103,397				26,010,914				25,750,824				25,723,548				25,947,038				25,592,731
Weighted average shares – diluted		26,043,799				26,254,772				26,200,026				25,945,773				25,888,064				26,111,755				25,822,085
(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
		December 31, 2018												September 30, 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		$	111,988			$	638			2.26		%		$	128,248			$	647			2.00		%
Other short-term investments		19,078				142				2.95				21,985				157				2.83
Investment securities:
Taxable investment securities		376,163				2,362				2.49				385,834				2,315				2.38
Non-taxable investment securities(1)		74,302				579				3.09				75,514				571				3.00
Total investment securities		450,465				2,941				2.59				461,348				2,886				2.48
Loans – continuing operations		1,699,801				22,752				5.31				1,583,459				20,117				5.04
FHLB and FRB stock		15,985				252				6.25				17,624				307				6.91
Total interest-earning assets – continuing operations		2,297,317				26,725				4.62				2,212,664				24,114				4.32
Loans held for sale – discontinued operations		377,052				4,509				4.74				380,358				4,502				4.70
Total interest-earning assets		2,674,369				31,234				4.63				2,593,022				28,616				4.38
Non-earning assets		216,958												212,718
Total assets		$	2,891,327											$	2,805,740
Liabilities
Interest bearing deposits:
NOW, money market, and savings		1,079,178				3,601				1.32				1,012,953				2,791				1.09
Time deposits		10,116				33				1.29				10,406				30				1.14
Brokered deposits		93,558				551				2.34				67,937				361				2.11
Total interest-bearing deposits		1,182,852				4,185				1.40				1,091,296				3,182				1.16
Total borrowings		91,155				547				2.38				134,609				714				2.10
Total long-term debt		49,677				828				6.61				49,634				824				6.59
Total interest-bearing liabilities – continuing operations		1,323,684				5,560				1.67				1,275,539				4,720				1.47
Interest-bearing liabilities – discontinued operations		472,162				1,284				1.08				473,388				1,236				1.04
Total interest-bearing liabilities		1,795,846				6,844				1.51				1,748,927				5,956				1.35
Demand deposits		597,240												561,355
Demand deposits – discontinued operations		135,774												136,572
Other liabilities		41,120												38,796
Shareholders’ equity		321,347												320,090
Total liabilities and shareholders’ equity		$	2,891,327											$	2,805,740
Net interest spread – continuing operations										2.95		%										2.85		%
Net interest income and net interest margin – continuing operations(2)						$	21,165			3.66		%						$	19,394			3.48		%
Net interest income and net interest margin(2)						$	24,390			3.62		%						$	22,660			3.47		%
Non-taxable equivalent net interest margin										3.60		%										3.45		%
(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
		Year ended
		December 31, 2018												December 31, 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		$	104,145			$	2,244			2.15		%		$	85,525			$	916			1.07		%
Other short-term investments		15,210				426				2.80				14,266				270				1.89
Investment securities:
Taxable investment securities		379,035				9,005				2.38				366,309				7,221				1.97
Non-taxable investment securities(1)		76,064				2,302				3.03				81,466				2,866				3.52
Total investment securities		455,099				11,307				2.48				447,775				10,087				2.25
Loans – continuing operations		1,599,916				80,110				5.01				1,506,862				64,436				4.28
FHLB and FRB stock		17,710				1,068				6.03				18,528				1,015				5.48
Total interest-earning assets – continuing operations		2,192,080				95,155				4.34				2,072,956				76,724				3.70
Loans held for sale – discontinued operations		377,098				18,224				4.83				429,247				20,453				4.76
Total interest-earning assets		2,569,178				113,379				4.41				2,502,203				97,177				3.88
Non-earning assets		211,393												217,455
Total assets		$	2,780,571											$	2,719,658
Liabilities
Interest bearing deposits:
NOW, money market, and savings		1,001,025				10,627				1.06				868,999				5,921				0.68
Time deposits		10,046				115				1.14				11,345				53				0.47
Brokered deposits		84,105				1,764				2.10				168,685				1,960				1.16
Total interest-bearing deposits		1,095,176				12,506				1.14				1,049,029				7,934				0.76
Total borrowings		139,422				2,703				1.94				175,060				1,758				1.00
Total long-term debt		49,613				3,304				6.66				49,444				3,294				6.66
Total interest-bearing liabilities – continuing operations		1,284,211				18,513				1.44				1,273,533				12,986				1.02
Interest-bearing liabilities – discontinued operations		467,101				4,084				0.87				466,777				2,143				0.46
Total interest-bearing liabilities		1,751,312				22,597				1.29				1,740,310				15,129				0.87
Demand deposits		538,110												490,495
Demand deposits – discontinued operations		137,905												140,551
Other liabilities		37,991												29,497
Shareholders’ equity		315,253												318,805
Total liabilities and shareholders’ equity		$	2,780,571											$	2,719,658
Net interest spread – continuing operations										2.90		%										2.68		%
Net interest income and net interest margin – continuing operations(2)						$	76,642			3.50		%						$	63,738			3.07		%
Net interest income and net interest margin(2)						$	90,782			3.53		%						$	82,048			3.28		%
Non-taxable equivalent net interest margin										3.52		%										3.24		%
(1) Interest revenue on tax-exempt securities has been increased to reflect comparable interest on taxable securities. The rate used was 21% for the year ended December 31, 2018 and 35% for the year ended December 31, 2017, 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.
Period End Loans(1)
(dollars in thousands)		December 31, 2018				September 30, 2018				June 30, 2018				March 31, 2018				December 31, 2017				Linked Quarter Change				Year Over Year Change
Loans held for sale
Loans held for sale		$	5,889			$	1,886			$	1,612			$	835			$	1,487			$	4,003			$	4,402
Loans held for sale – discontinued operations		373,030				376,081				382,848				397,212				415,335				(3,051		)		(42,305		)
Total loans held for sale		$	378,919			$	377,967			$	384,460			$	398,047			$	416,822			$	952			$	(37,903	)
Loans held for investment
Commercial loans:
Commercial and industrial		$	645,374			$	581,632			$	546,381			$	558,536			$	538,917			$	63,742			$	106,457
Commercial real estate:
Multifamily		88,826				108,001				92,013				92,016				91,475				(19,175		)		(2,649		)
Owner occupied		298,291				295,801				265,576				260,270				250,588				2,490				47,703
Investment		407,711				409,145				386,072				389,410				411,923				(1,434		)		(4,212		)
Construction and land:
1-4 family residential construction		1,006				—				378				287				335				1,006				671
Other construction, development, and land		155,226				147,114				134,764				131,466				101,466				8,112				53,760
Mortgage warehouse loans		27,967				27,838				38,352				44,575				39,981				129				(12,014		)
Total commercial loans		1,624,401				1,569,531				1,463,536				1,476,560				1,434,685				54,870				189,716
Residential:
Residential mortgages		32,800				24,904				20,270				19,446				12,960				7,896				19,840
Home equity		22,822				33,410				32,638				34,673				39,407				(10,588		)		(16,585		)
Total residential loans		55,622				58,314				52,908				54,119				52,367				(2,692		)		3,255
Consumer		25,851				26,825				25,531				23,214				21,959				(974		)		3,892
Other		24,712				10,579				12,409				11,769				13,303				14,133				11,409
		1,730,586				1,665,249				1,554,384				1,565,662				1,522,314				65,337				208,272
Less net deferred fees and other unearned income		(2,513		)		(2,896		)		(2,921		)		(3,453		)		(3,810		)		383				1,297
Total loans held for investment		$	1,728,073			$	1,662,353			$	1,551,463			$	1,562,209			$	1,518,504			$	65,720			$	209,569
Total loans		$	2,106,992			$	2,040,320			$	1,935,923			$	1,960,256			$	1,935,326			$	66,672			$	171,666
(1)Loans held for sale-discontinued operations and loans held for investment have been adjusted retrospectively for all periods presented for the impact of discontinued operations.

ATLANTIC CAPITAL BANCSHARES, INC.
Allowance for Loan Losses Activity and Credit Quality
		2018																2017
(dollars in thousands)		Fourth Quarter				Third Quarter				Second Quarter				First Quarter				Fourth Quarter
Balance at beginning of period		$	20,443			$	19,583			$	19,885			$	19,344			$	18,870
Provision for loan losses		595				758				(173		)		811				312
Provision for loan losses (reversal of provision) – discontinued operations		(3,097		)		—				—				—				—
Provision for PCI loan losses		(93		)		87				—				(39		)		(30		)
Loans charged-off:
Commercial and industrial		—				—				—				(126		)		—
Commercial real estate		—				—				(50		)		—				—
Construction and land		—				—				—				—				—
Residential mortgages		(5		)		—				—				(70		)		—
Home equity		—				—				(102		)		(58		)		—
Consumer		(3		)		—				(10		)		(3		)		(13		)
Other		—				—				—				—				—
Total loans charged-off		(8		)		—				(162		)		(257		)		(13		)
Recoveries on loans previously charged-off:
Commercial and industrial		—				—				—				19				192
Commercial real estate		—				—				28				—				—
Construction and land		—				—				—				—				1
Residential mortgages		4				—				—				—				—
Home equity		—				—				—				—				—
Consumer		7				15				5				7				12
Other		—				—				—				—				—
Total recoveries		11				15				33				26				205
Net charge-offs		$	3			$	15			$	(129	)		$	(231	)		$	192
Balance at period end (1)		$	17,851			$	20,443			$	19,583			$	19,885			$	19,344
Loans
Loans held for sale		$	5,889			$	1,886			$	1,612			$	835			$	1,487
Loans held for sale – discontinued operations		373,030				376,081				382,848				397,212				415,335
Loans held for investment – continuing operations		1,728,073				1,662,353				1,551,463				1,562,209				1,518,504
Total loans		$	2,106,992			$	2,040,320			$	1,935,923			$	1,960,256			$	1,935,326
Non-performing loans – continuing operations (4)		$	3,252			$	2,160			$	1,697			$	1,941			$	1,915
Non-performing loans – discontinued operations		1,924				556				709				560				997
Total non-performing loans		5,176				2,716				2,406				2,501				2,912
Foreclosed properties (OREO)		874				968				1,288				927				1,215
Total nonperforming assets		$	6,050			$	3,684			$	3,694			$	3,428			$	4,127
Allowance for loan losses to loans held for investment (2)		1.03			%	1.00			%	1.01			%	1.01			%	1.00			%
Net charge-offs to average loans (3)		—				—				0.03				0.05				(0.04		)
Non-performing loans as a percentage of total loans – continuing operations (4)		0.19			%	0.13			%	0.11			%	0.12			%	0.13			%
Non-performing loans as a percentage of total loans – discontinued operations (4)		0.52				0.15				0.19				0.14				0.24
Non-performing loans as a percentage of total loans (4)		0.25				0.13				0.12				0.13				0.15
Non-performing assets as a percentage of total assets – continuing operations (4)		0.14			%	0.11			%	0.11			%	0.11			%	0.11			%
Non-performing assets as a percentage of total assets – discontinued operations (4)		0.07				0.02				0.03				0.02				0.03
Non-performing assets as a percentage of total assets (4)		0.20				0.13				0.14				0.13				0.14
(1) The allowance for loan losses has not been adjusted retrospectively for discontinued operations in prior periods.  (2) The fourth quarter 2018 ratio is 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)		December 31, 2018				September 30, 2018				June 30,   2018				March 31, 2018				December 31, 2017				Linked Quarter Change				Year Over Year Change
DDA		$	602,252			$	518,155			$	464,282			$	472,181			$	596,328			$	84,097			$	5,924
NOW		252,490				407,214				241,461				214,333				203,113				(154,724		)		49,377
Savings		725				698				951				3,593				530				27				195
Money market		987,183				759,583				647,247				699,311				925,536				227,600				61,647
Time		10,623				10,396				10,359				3,074				10,812				227				(189		)
Brokered		99,241				79,119				92,656				112,376				128,816				20,122				(29,575		)
Total deposits – continuing operations		1,952,514				1,775,165				1,456,956				1,504,868				1,865,135				177,349				87,379
Deposits to be assumed – discontinued operations		585,429				604,659				609,631				591,432				585,530				(19,230		)		(101		)
Total deposits		$	2,537,943			$	2,379,824			$	2,066,587			$	2,096,300			$	2,450,665			$	158,119			$	87,278
Payments clients		$	397,608			$	258,320			$	251,748			$	311,943			$	405,873			$	139,288			$	(8,265	)
Average Deposits
		2018																2017				Linked
(dollars in thousands)		Fourth Quarter				Third Quarter				Second Quarter				First   Quarter				Fourth Quarter				Quarter Change				Q4 2018 vs Q4 2017
DDA		$	597,239			$	561,355			$	489,722			$	502,829			$	509,301			$	35,884			$	87,938
NOW		280,449				314,759				287,283				236,796				240,891				(34,310		)		39,558
Savings		712				616				674				527				436				96				276
Money market		798,017				697,578				645,034				697,092				713,118				100,439				84,899
Time		10,117				10,406				9,855				9,800				10,643				(289		)		(526		)
Brokered		93,558				67,937				100,425				117,787				128,594				25,621				(35,036		)
Total deposits – continuing operations		1,780,092				1,652,651				1,532,993				1,564,831				1,602,983				127,441				177,109
Deposits to be assumed – discontinued operations		600,769				601,421				602,832				589,054				591,866				(652		)		8,903
Total deposits		$	2,380,861			$	2,254,072			$	2,135,825			$	2,153,885			$	2,194,849			$	126,789			$	186,012
Payments clients		$	263,800			$	227,029			$	219,016			$	256,794			$	234,558			$	36,771			$	29,242
Noninterest bearing deposits as a percentage of average deposits – continuing operations		33.6		%		34.0		%		31.9		%		32.1		%		31.8		%
Cost of deposits – continuing operations		0.93		%		0.76		%		0.71		%		0.63		%		0.56		%

ATLANTIC CAPITAL BANCSHARES, INC.
Discontinued Operations Information
		Q4 2018
(in thousands, except per share data)		Actual Results (GAAP)				Discontinued Operations Adjustments(1)				Loss on Sale of Securities				DTA Adjustment(2)				Adjusted Results (Non-GAAP)
Net interest income		$	21,068			$	—			$	—			$	—			$	21,068
Provision for loan losses		502				—				—				—				502
Net interest income after provision for loan losses		20,566				—				—				—				20,566
Noninterest income		164				—				1,853				—				2,017
Noninterest expense		12,208				—				—				—				12,208
Income from continuing operations before income tax		8,522				—				1,853				—				10,375
Provision for income taxes		1,039				—				463				996				2,498
Net income from continuing operations		7,483				—				1,390				(996		)		7,877
Income (loss) from discontinued operations		1,347				(1,704		)		—				—				(357		)
Net income		$	8,830			$	(1,704	)		$	1,390			$	(996	)		$	7,520
Diluted earnings per share – continuing operations		$	0.29															$	0.30
Diluted earnings per share		0.34																0.29
(1)Includes negative provision for loan losses and divestiture expenses, net of tax.
(2)Represents a $4.5 million favorable reduction of the valuation allowance on deferred tax assets related to Section 382 limitation offset by an unfavorable increase of $3.5 million in the valuation allowance related to deferred taxes on state net operating loss utilization.

ATLANTIC CAPITAL BANCSHARES, INC.
Non-GAAP Performance and Financial Measures Reconciliation
		2018																2017				For the year ended December 31,
(in thousands, except share and per share data)		Fourth Quarter				Third Quarter				Second Quarter				First Quarter				Fourth Quarter				2018				2017
Taxable equivalent interest income reconciliation
Interest income – GAAP		$	26,628			$	24,017			$	22,836			$	21,279			$	20,170			$	94,760			$	75,818
Taxable equivalent adjustment		97				97				98				103				213				395				906
Interest income – taxable equivalent		$	26,725			$	24,114			$	22,934			$	21,382			$	20,383			$	95,155			$	76,724
Taxable equivalent net interest income reconciliation
Net interest income – GAAP		$	21,068			$	19,297			$	18,444			$	17,438			$	16,716			$	76,247			$	62,832
Taxable equivalent adjustment		97				97				98				103				213				395				906
Net interest income – taxable equivalent		$	21,165			$	19,394			$	18,542			$	17,541			$	16,929			$	76,642			$	63,738
Taxable equivalent net interest margin reconciliation
Net interest margin – GAAP		3.60			%	3.45			%	3.52			%	3.49			%	3.35			%	3.52			%	3.24			%
Impact of taxable equivalent adjustment		0.02				0.02				0.02				0.02				0.04				0.01				0.04
Net interest margin – taxable equivalent		3.62			%	3.47			%	3.54			%	3.51			%	3.39			%	3.53			%	3.28			%
Income before income taxes reconciliation
Income before income taxes – GAAP		$	8,522			$	8,835			$	10,460			$	6,540			$	3,849			$	34,357			$	18,959
Taxable equivalent adjustment		97				97				98				103				213				395				906
Income before income taxes		$	8,619			$	8,932			$	10,558			$	6,643			$	4,062			$	34,752			$	19,865
Income tax reconciliation
Income tax expense – GAAP		$	1,039			$	1,837			$	2,082			$	1,349			$	19,157			$	6,307			$	23,715
Taxable equivalent adjustment		97				97				98				103				213				395				906
Income tax expense		$	1,136			$	1,934			$	2,180			$	1,452			$	19,370			$	6,702			$	24,621
Tangible book value per common share reconciliation
Total shareholders’ equity		$	323,653			$	320,237			$	316,770			$	307,059			$	308,425			$	323,653			$	308,425
Intangible assets		(23,095		)		(23,367		)		(23,662		)		(24,050		)		(24,393		)		(23,095		)		(24,393		)
Total tangible common equity		$	300,558			$	296,870			$	293,108			$	283,009			$	284,032			$	300,558			$	284,032
Common shares outstanding		25,290,419				26,103,666				26,102,217				25,772,208				25,712,909				25,290,419				25,712,909
Book value per common share – GAAP		$	12.80			$	12.27			$	12.14			$	11.91			$	11.99			$	12.80			$	11.99
Tangible book value		11.88				11.37				11.23				10.98				11.05				11.88				11.05
Tangible common equity to tangible assets reconciliation
Total shareholders’ equity		$	323,653			$	320,237			$	316,770			$	307,059			$	308,425			$	323,653			$	308,425
Intangible assets		(23,095		)		(23,367		)		(23,662		)		(24,050		)		(24,393		)		(23,095		)		(24,393		)
Total tangible common equity		$	300,558			$	296,870			$	293,108			$	283,009			$	284,032			$	300,558			$	284,032
Total assets		$	2,955,440			$	2,882,721			$	2,690,674			$	2,718,665			$	2,891,421			$	2,955,440			$	2,891,421
Intangible assets		(23,095		)		(23,367		)		(23,662		)		(24,050		)		(24,393		)		(23,095		)		(24,393		)
Total tangible assets		$	2,932,345			$	2,859,354			$	2,667,012			$	2,694,615			$	2,867,028			$	2,932,345			$	2,867,028
Tangible common equity to tangible assets		10.25			%	10.38			%	10.99			%	10.50			%	9.91			%	10.25			%	9.91			%