ACBI Atlantic Capital Bancshares Inc

Atlantic Capital Bancshares, Inc. (NASDAQ: ACBI) announced net income from continuing operations for the quarter ended June 30, 2019 of $7.0 million, or $0.29 per diluted share, compared to $8.4 million, or $0.32 per diluted share, for the second quarter of 2018 and $6.4 million, or $0.26 per diluted share, for the first quarter of 2019.

On April 5, 2019, Atlantic Capital completed the sale of 14 branches in Tennessee and northwest Georgia, including its mortgage business to FirstBank (the “branch sale”). This branch sale included the sale of approximately $598 million in deposits and repurchase agreements and approximately $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.  Net income from discontinued operations in the second quarter of 2019 included a gain on sale of branches of $34.5 million and divestiture expenses of $3.6 million.

“With strong loan, deposit, and non-interest income growth in the second quarter, Atlantic Capital continued to build on its success in Atlanta and its specialty commercial lines of business. We have invested aggressively in new bankers, support professionals, and offices to address new opportunities in our vibrant and growing markets,” remarked Douglas Williams, President and Chief Executive Officer.

Second Quarter Highlights(1)

• Tangible book value per share increased to $13.60, compared to $11.23 at June 30, 2018 and $12.17 at March 31, 2019. 
• Taxable equivalent net interest margin from continuing operations was 3.61%, compared to 3.51% in the second quarter of 2018 and 3.74% in the first quarter of 2019.
• Noninterest expense from continuing operations totaled $13.3 million, compared to $12.6 million in the second quarter of 2018 and $13.8 million in the first quarter of 2019.
• Commercial and industrial loans held for investment increased $155.1 million, or 28.3% from June 30, 2018 and $22.1 million, or 13.0% annualized, from March 31, 2019. 
• Average deposits from continuing operations increased $369.1 million, or 24.1%, compared to the second quarter of 2018 and $108.3 million, or 24.1% annualized, compared to the first quarter of 2019.
• The company repurchased 1.1 million shares in the second quarter totaling $19.5 million, and has repurchased 2.9 million shares totaling $50.8 million since the announcement of the $85.0 million buyback program in November of 2018.

Income Statement             

Taxable equivalent net interest income from continuing operations totaled $20.0 million for the second quarter of 2019, an increase of $1.4 million, or 8%, from the second quarter of 2018, and a decrease of $547,000 from the first quarter of 2019.  The decrease in net interest income from the first quarter of 2019 was primarily the result of a decrease in the average balance of investment securities and an increase in borrowings to help fund the $167 million in cash paid to FirstBank at the closing of the branch sale, along with an increase in the cost of interest bearing deposits.

Net interest margin from continuing operations was 3.61% in the second quarter of 2019, an increase of 10 basis points from the second quarter of 2018 and a decrease of 13 basis points from the first quarter of 2019.  The decrease in the second quarter was primarily the result of a decrease in loan yields, higher cost of interest bearing deposits and an increase in borrowings to help fund the cash paid for the branch sale.

The yield on loans from continuing operations in the second quarter of 2019 was 5.34%, an increase of 32 basis points from the second quarter of 2018 and a decrease of 6 basis points from the first quarter of 2019.  The linked quarter decrease was primarily a result of decreases in 1 month LIBOR during the quarter.

(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 16.

The cost of deposits from continuing operations in the second quarter of 2019 was 1.15%, an increase of 44 basis points from the second quarter of 2018 and an increase of 6 basis points from the first quarter of 2019. The cost of interest bearing deposits from continuing operations increased 62 basis points to 1.66% from the second quarter of 2018, and increased 5 basis points from the first quarter of 2019.

The provision for loan losses for continuing operations was $698,000 in the second quarter of 2019 compared to ($173,000) in the second quarter of 2018 and $814,000 in the first quarter of 2019.  Annualized net charge-offs were 0.14% of average loans in the second quarter of 2019 and 0.12% for the first six months of 2019.

Noninterest income from continuing operations totaled $2.9 million in the second quarter of 2019 compared to $4.5 million in the second quarter of 2018 and $2.3 million in the first quarter of 2019.  The second quarter of 2018 included a $1.7 million gain on the sale of the Southeastern Trust Company and $518,000 in trust income earned prior to the sale.  The second quarter of 2019 included a gain of $654,000 on the sale of investment securities to help fund the cash owed to the buyer at the closing of the branch sale and a loss of $233,000 in derivative income due to the credit valuation adjustment on the customer swap portfolio.

Noninterest expense from continuing operations totaled $13.3 million in the second quarter of 2019, an increase of $631,000 compared to the second quarter of 2018, and a decrease of $541,000 compared to the first quarter of 2019.  Salaries and employee benefits expense totaled $8.5 million in the second quarter of 2019, and accounted for most of the linked quarter decrease in expenses primarily as a result of lower benefits cost.

Balance Sheet

Total loans held for investment were $1.79 billion at June 30, 2019, an increase of $238.2 million, or 15.3%, from June 30, 2018 and an increase of $55.2 million, or 12.7% annualized, from March 31, 2019.  Commercial and industrial loans increased $155.1 million, or 28.4%, from June 30, 2018 and increased $22.1 million, or 13.0% annualized, from March 31, 2019.  Mortgage warehouse loans decreased $27.7 million from June 30, 2018 and $11.6 million from March 31, 2019.

At June 30, 2019, the allowance for loan losses was $18.2 million, or 1.02% of loans held for investment compared to 1.01%, at June 30, 2018 and 1.04%, at March 31, 2019.  Non-performing assets from continuing operations totaled $6.4 million, or 0.31% of total assets, as of June 30, 2019, compared to 0.11% of total assets as of June 30, 2018 and 0.34% of total assets as of March 31, 2019.

Total average deposits from continuing operations were $1.90 billion for the second quarter of 2019, an increase of $369.0 million, or 24.1%, from the second quarter of 2018 and an increase of $108.3 million, or 24.1% annualized, from the first quarter of 2019. Noninterest bearing deposits were 30.9% of total average deposits from continuing operations in the second quarter of 2019, compared to 31.9% in the second quarter of 2018 and 32.1% in the first quarter of 2019.

Earnings Conference Call

The Company will host a conference call at 10:00 a.m. EDT on Friday, July 26, 2019, to discuss the financial results for the quarter ended June 30, 2019. Individuals wishing to participate in the conference call may do so by dialing 866-777-2509 from the United States. 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 $2.4 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 CarsonEmail: ashley.carson@atlcapbank.comPhone: 404-995-6050

Financial Contact:Patrick OakesEmail: patrick.oakes@atlcapbank.comPhone: 404-995-6050

ATLANTIC CAPITAL BANCSHARES, INC.
Selected Financial Information
		2019								2018												For the six months ended June 30,
(in thousands, except share and per share data; taxable equivalent)		Second Quarter				First Quarter				Fourth Quarter				Third Quarter				Second Quarter				2019				2018
INCOME SUMMARY (1)
Interest income (2)		$	26,686			$	26,297			$	26,725			$	24,114			$	22,934			$	52,983			$	44,316
Interest expense		6,709				5,773				5,560				4,720				4,392				12,482				8,233
Net interest income		19,977				20,524				21,165				19,394				18,542				40,501				36,083
Provision for loan losses		698				814				502				845				(173		)		1,512				599
Net interest income after provision for loan losses		19,279				19,710				20,663				18,549				18,715				38,989				35,484
Noninterest income		2,941				2,336				164				2,255				4,466				5,277				7,628
Noninterest expense		13,254				13,795				12,208				11,872				12,623				27,049				25,911
Income from continuing operations before income taxes		8,966				8,251				8,619				8,932				10,558				17,217				17,201
Income tax expense		1,957				1,811				1,136				1,934				2,180				3,768				3,632
Net income from continuing operations		7,009				6,440				7,483				6,998				8,378				13,449				13,569
Income (loss) from discontinued operations, net of tax		22,143				(1,063		)		1,347				(485		)		(227		)		21,080				(380		)
Net income		$	29,152			$	5,377			$	8,830			$	6,513			$	8,151			$	34,529			$	13,189
PER SHARE DATA
Diluted earnings per share - continuing operations		$	0.29			$	0.26			$	0.29			$	0.27			$	0.32			$	0.55			$	0.52
Diluted earnings (loss) per share - discontinued operations		0.92				(0.04		)		0.05				(0.02		)		(0.01		)		0.86				(0.01		)
Diluted earnings per share		1.21				0.21				0.34				0.25				0.31				1.41				0.51
Book value per share		14.46				13.10				12.80				12.27				12.14				14.46				12.14
Tangible book value per common share (3)		13.60				12.17				11.88				11.37				11.23				13.60				11.23
PERFORMANCE MEASURES
Return on average equity		34.38			%	6.80			%	10.90			%	8.07			%	10.46			%	21.07			%	8.59			%
Return on average assets		4.79				0.77				1.21				0.92				1.20				2.64				0.98
Taxable equivalent net interest margin - continuing operations		3.61				3.74				3.66				3.48				3.51				3.73				3.45
Efficiency ratio - continuing operations		58.06				60.61				57.50				55.09				55.10				59.33				59.55
CAPITAL
Average equity to average assets		13.94			%	11.34			%	11.11			%	11.41			%	11.50			%	12.55			%	11.42			%
Tangible common equity to tangible assets		13.37				10.51				10.25				10.38				10.99				13.37				10.99
Tier 1 capital ratio		13.4			(4)	11.0				11.5				11.8				12.0				13.4			(4)	12.0
Total risk based capital ratio		16.5			(4)	13.7				14.2				14.7				15.0				16.5			(4)	15.0
Number of common shares outstanding - basic		23,293,465				24,466,964				25,290,419				26,103,666				26,102,217				23,293,465				26,102,217
Number of common shares outstanding - diluted		23,508,442				24,719,273				25,480,233				26,281,849				26,336,871				23,508,442				26,336,871
ASSET QUALITY
Allowance for loan losses to loans held for investment (5)		1.02			%	1.04			%	1.03			%	1.00			%	1.01			%	1.02			%	1.01			%
Net charge-offs to average loans (6)		0.14				0.11				—				—				0.03				0.12				0.04
Non-performing assets to total assets		0.31				0.40				0.20				0.13				0.14				0.31				0.14
(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 mortgage business and branches 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)Amounts are estimates as of 6/30/19. (5)The ratios for the first and second quarters of 2019 and fourth quarter of 2018 are calculated on a continuing operations basis.  Prior period ratios have not been retrospectively adjusted for the impact of discontinued operations.  (6)Annualized.

ATLANTIC CAPITAL BANCSHARES, INC.
Financial Information from Discontinued Operations
Assets and Liabilities from Discontinued Operations
(in thousands)		June 30, 2019				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												For the six months ended June 30,
(in thousands)		Second Quarter				First Quarter				Fourth Quarter				Third Quarter				Second Quarter				2019				2018
Net interest income		$	(39	)		$	3,125			$	3,225			$	3,266			$	3,570			$	3,086			$	7,649
Provision for loan losses		—				—				(3,097		)		—				—				—				—
Net interest income after provision		(39		)		3,125				6,322				3,266				3,570				3,086				7,649
Service charges		46				481				483				474				480				527				965
Mortgage income		—				288				320				315				363				288				667
Gain on sale of branches		34,475				—				—				—				—				34,475				—
Other income		(22		)		21				47				22				22				(1		)		54
Total noninterest income		34,499				790				850				811				865				35,289				1,686
Salaries and employee benefits		330				2,427				2,757				2,820				3,010				2,757				6,137
Occupancy		71				339				479				556				511				410				981
Equipment and software		8				123				158				217				203				131				404
Amortization of intangibles		—				247				271				296				319				247				662
Communications and data processing		197				389				440				381				346				586				708
Divestiture expense		3,646				1,449				825				—				—				5,095				—
Other noninterest expense		101				358				446				453				349				459				950
Total noninterest expense		4,353				5,332				5,376				4,723				4,738				9,685				9,842
Net income (loss) before provision for income taxes		30,107				(1,417		)		1,796				(646		)		(303		)		28,690				(507		)
Provision (benefit) for income taxes		7,964				(354		)		449				(161		)		(76		)		7,610				(127		)
Net income (loss) from discontinued operations		$	22,143			$	(1,063	)		$	1,347			$	(485	)		$	(227	)		$	21,080			$	(380	)

ATLANTIC CAPITAL BANCSHARES, INC.
Consolidated Balance Sheets (unaudited)
		June 30,				March 31,				December 31,				June 30,
(in thousands, except share data)		2019				2019				2018				2018
ASSETS
Cash and due from banks		$	24,206			$	36,992			$	42,895			$	55,612
Interest-bearing deposits in banks		52,932				76,720				216,040				42,477
Other short-term investments		—				29,457				9,457				14,712
Cash and cash equivalents		77,138				143,169				268,392				112,801
Investment securities available-for-sale		348,723				402,640				402,486				453,968
Other investments		31,912				28,844				29,236				36,190
Loans held for sale		—				1,530				5,889				1,612
Loans held for sale - discontinued operations(1)		—				384,779				373,030				382,732
Loans held for investment(1)		1,789,740				1,734,557				1,728,073				1,551,579
Less: allowance for loan losses(2)		(18,186		)		(18,107		)		(17,851		)		(19,583		)
Loans held for investment, net		1,771,554				1,716,450				1,710,222				1,531,996
Premises held for sale - discontinued operations(1)		—				7,736				7,722				7,296
Premises and equipment, net(1)		20,037				23,311				9,779				9,582
Bank owned life insurance		65,874				65,486				65,149				64,391
Goodwill - discontinued operations(1)		—				4,555				4,555				4,555
Goodwill - continuing operations(1)		19,925				17,135				17,135				17,135
Other intangibles, net		3,095				4,241				4,388				5,322
Other real estate owned		971				971				874				1,288
Other assets		50,451				55,040				56,583				61,806
Total assets		$	2,389,680			$	2,855,887			$	2,955,440			$	2,690,674
LIABILITIES AND SHAREHOLDERS' EQUITY
Deposits:
Noninterest-bearing demand(1)		$	569,693			$	561,829			$	602,252			$	464,282
Interest-bearing checking(1)		309,709				233,838				252,490				241,461
Savings(1)		1,090				896				725				951
Money market(1)		802,973				962,741				987,183				647,247
Time(1)		33,902				22,069				10,623				10,359
Brokered deposits		134,164				65,811				99,241				92,656
Deposits to be assumed - discontinued operations(1)		—				593,264				585,429				609,631
Total deposits		1,851,531				2,440,448				2,537,943				2,066,587
Federal funds purchased		35,000				—				—				65,000
Securities sold under agreements to repurchase - discontinued operations(1)		—				9,821				6,220				8,024
Federal Home Loan Bank borrowings		82,000				—				—				150,000
Long-term debt		49,789				49,746				49,704				49,620
Other liabilities		34,645				35,245				37,920				34,673
Total liabilities		2,052,965				2,535,260				2,631,787				2,373,904
SHAREHOLDERS' EQUITY
Preferred stock, no par value;  10,000,000 shares authorized; no shares issued and outstanding as of June 30, 2019, March 31, 2019, December 31, 2018, and June 30, 2018		—				—				—				—
Common stock, no par value; 100,000,000 shares authorized; 23,293,465, 24,466,964, 25,290,419, and 26,102,217 shares issued and outstanding as of June 30, 2019, March 31, 2019, December 31, 2018, and June 30, 2018, respectively		256,791				276,346				291,771				304,793
Retained earnings		76,343				47,191				42,187				26,844
Accumulated other comprehensive (loss) income		3,581				(2,910		)		(10,305		)		(14,867		)
Total shareholders’ equity		336,715				320,627				323,653				316,770
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY		$	2,389,680			$	2,855,887			$	2,955,440			$	2,690,674
(1)Assets and liabilities related to the sale of Tennessee and northwest Georgia banking operations were classified as held for sale as of March 31, 2019 and 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 periods prior to December 31, 2018.

ATLANTIC CAPITAL BANCSHARES, INC.
Consolidated Statements of Income (unaudited) (1)
(in thousands, except share and per share data)		Three months ended																				Six months ended
		June 30, 2019				March 31, 2019				December 31, 2018				September 30, 2018				June 30, 2018				June 30, 2019				June 30, 2018
INTEREST INCOME
Loans, including fees		$	23,554			$	22,752			$	22,752			$	20,117			$	19,269			$	46,306			$	37,241
Investment securities available-for-sale		2,339				2,631				2,844				2,789				2,687				4,970				5,279
Interest and dividends on other interest‑earning assets		705				814				1,032				1,111				880				1,519				1,595
Total interest income		26,598				26,197				26,628				24,017				22,836				52,795				44,115
INTEREST EXPENSE
Interest on deposits		5,448				4,831				4,185				3,182				2,715				10,279				5,139
Interest on Federal Home Loan Bank advances		270				—				487				637				766				270				1,275
Interest on federal funds purchased and securities sold under agreements to repurchase		168				118				60				77				88				286				167
Interest on long-term debt		823				824				828				824				823				1,647				1,652
Total interest expense		6,709				5,773				5,560				4,720				4,392				12,482				8,233
NET INTEREST INCOME BEFORE PROVISION FOR LOAN LOSSES		19,889				20,424				21,068				19,297				18,444				40,313				35,882
Provision for loan losses		698				814				502				845				(173		)		1,512				599
NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES		19,191				19,610				20,566				18,452				18,617				38,801				35,283
NONINTEREST  INCOME
Service charges		870				794				876				804				828				1,664				1,535
Gains (losses) on sale of securities		654				—				(1,853		)		—				(2		)		654				(2		)
Gains (losses) on sale of other assets		(10		)		(3		)		—				58				(166		)		(13		)		(212		)
Trust income		—				—				—				—				507				—				1,025
Derivatives income		(233		)		(111		)		154				20				20				(344		)		134
Bank owned life insurance		389				360				380				379				378				749				747
SBA lending activities		1,096				1,086				425				882				997				2,182				2,299
Gain on sale of trust company		—				—				—				—				1,681				—				1,681
Other noninterest income		175				210				182				112				223				385				421
Total noninterest income		2,941				2,336				164				2,255				4,466				5,277				7,628
NONINTEREST EXPENSE
Salaries and employee benefits		8,529				9,213				7,573				7,332				7,911				17,742				16,861
Occupancy		689				639				655				732				700				1,328				1,585
Equipment and software		753				739				783				747				701				1,492				1,287
Professional services		792				775				947				796				943				1,567				1,768
Postage, printing and supplies		29				48				30				55				44				77				81
Communications and data processing		662				675				772				566				657				1,337				1,338
Marketing and business development		233				226				224				211				135				459				275
FDIC premiums		175				235				157				154				143				410				251
Other noninterest expense		1,392				1,245				1,067				1,279				1,389				2,637				2,465
Total noninterest expense		13,254				13,795				12,208				11,872				12,623				27,049				25,911
INCOME FROM CONTINUING OPERATIONS BEFORE PROVISION FOR INCOME TAXES		8,878				8,151				8,522				8,835				10,460				17,029				17,000
Provision for income taxes		1,869				1,711				1,039				1,837				2,082				3,580				3,431
NET INCOME FROM CONTINUING OPERATIONS		7,009				6,440				7,483				6,998				8,378				13,449				13,569
DISCONTINUED OPERATIONS
Income (loss) from discontinued operations		$	30,107			$	(1,417	)		$	1,796			$	(646	)		$	(303	)		$	28,690			$	(507	)
Provision (benefit) for income taxes		7,964				(354		)		449				(161		)		(76		)		7,610				(127		)
Net income (loss) from discontinued operations		22,143				(1,063		)		1,347				(485		)		(227		)		21,080				(380		)
NET INCOME		$	29,152			$	5,377			$	8,830			$	6,513			$	8,151			$	34,529			$	13,189
Net Income (Loss) per Common Share ‑ Basic
Net income per common share - continuing operations		$	0.29			$	0.26			$	0.29			$	0.27			$	0.32			$	0.55			$	0.52
Net income (loss) per common share - discontinued operations		0.93				(0.04		)		0.05				(0.02		)		(0.01		)		0.87				(0.01		)
Net Income per Common Share ‑ Basic		1.22				0.22				0.34				0.25				0.31				1.42				0.51
Net Income (Loss) per Common Share ‑ Diluted
Net income per common share - continuing operations		$	0.29			$	0.26			$	0.29			$	0.27			$	0.32			$	0.55			$	0.52
Net income (loss) per common share - discontinued operations		0.92				(0.04		)		0.05				(0.02		)		(0.01		)		0.86				(0.01		)
Net Income per Common Share ‑ Diluted		1.21				0.21				0.34				0.25				0.31				1.41				0.51
Weighted average shares - basic		23,888,381				24,855,171				25,919,445				26,103,397				26,010,914				24,369,106				25,881,587
Weighted average shares - diluted		24,040,806				25,019,384				26,043,799				26,254,772				26,200,026				24,527,392				26,073,602
(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
		June 30, 2019												March 31, 2019
(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		$	70,628			$	450			2.56		%		$	92,168			$	463			2.04		%
Other short-term investments		3,993				32				3.21				11,680				86				2.99
Investment securities:
Taxable investment securities		280,639				1,848				2.64				320,089				2,113				2.68
Non-taxable investment securities(1)		79,408				579				2.92				80,012				618				3.13
Total investment securities		360,047				2,427				2.70				400,101				2,731				2.77
Loans - continuing operations		1,769,803				23,554				5.34				1,707,682				22,752				5.40
FHLB and FRB stock		14,435				223				6.20				12,528				265				8.58
Total interest-earning assets - continuing operations		2,218,906				26,686				4.82				2,224,159				26,297				4.80
Loans held for sale - discontinued operations		30,198				47				0.62				381,783				4,541				4.82
Total interest-earning assets		2,249,104				26,733				4.77				2,605,942				30,838				4.80
Non-earning assets		191,398												223,130
Total assets		$	2,440,502											$	2,829,072
Liabilities
Interest bearing deposits:
NOW, money market, and savings		1,175,237				4,733				1.62				1,124,350				4,255				1.53
Time deposits		32,358				50				0.62				12,847				38				1.20
Brokered deposits		106,524				665				2.50				81,141				538				2.69
Total interest-bearing deposits		1,314,119				5,448				1.66				1,218,338				4,831				1.61
Total borrowings		70,770				438				2.48				18,056				118				2.65
Total long-term debt		49,761				823				6.63				49,719				824				6.72
Total interest-bearing liabilities - continuing operations		1,434,650				6,709				1.88				1,286,113				5,773				1.82
Interest-bearing liabilities - discontinued operations		36,255				86				0.95				473,090				1,416				1.21
Total interest-bearing liabilities		1,470,905				6,795				1.85				1,759,203				7,189				1.66
Demand deposits		587,957												575,453
Demand deposits - discontinued operations		9,851												128,977
Other liabilities		31,670												44,627
Shareholders' equity		340,119												320,812
Total liabilities and shareholders' equity		$	2,440,502											$	2,829,072
Net interest spread - continuing operations										2.94		%										2.98		%
Net interest income and net interest margin - continuing operations(2)						$	19,977			3.61		%						$	20,524			3.74		%
Net interest income and net interest margin(2)						$	19,938			3.56		%						$	23,649			3.68		%
Non-taxable equivalent net interest margin										3.54		%										3.66		%
(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.
Average Balance Sheets and Net Interest Margin Analysis
Selected Financial Information
		Three months ended
		June 30, 2019												June 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		$	70,628			$	450			2.56		%		$	97,501			$	562			2.31		%
Other short-term investments		3,993				32				3.21				9,262				64				2.77
Investment securities:
Taxable investment securities		280,639				1,848				2.64				378,291				2,212				2.35
Non-taxable investment securities(1)		79,408				579				2.92				76,343				573				3.01
Total investment securities		360,047				2,427				2.70				454,634				2,785				2.46
Loans - continuing operations		1,769,803				23,554				5.34				1,540,351				19,269				5.02
FHLB and FRB stock		14,435				223				6.20				19,357				254				5.26
Total interest-earning assets - continuing operations		2,218,906				26,686				4.82				2,121,105				22,934				4.34
Loans held for sale - discontinued operations		30,198				47				0.62				386,712				4,510				4.68
Total interest-earning assets		2,249,104				26,733				4.77				2,507,817				27,444				4.39
Non-earning assets		191,398												210,254
Total assets		$	2,440,502											$	2,718,071
Liabilities
Interest bearing deposits:
NOW, money market, and savings		1,175,237				4,733				1.62				932,991				2,222				0.96
Time deposits		32,358				50				0.62				9,855				25				1.02
Brokered deposits		106,524				665				2.50				100,425				468				1.87
Total interest-bearing deposits		1,314,119				5,448				1.66				1,043,271				2,715				1.04
Total borrowings		70,770				438				2.48				180,699				853				1.89
Total long-term debt		49,761				823				6.63				49,592				823				6.66
Total interest-bearing liabilities - continuing operations		1,434,650				6,709				1.88				1,273,562				4,391				1.38
Interest-bearing liabilities - discontinued operations		36,255				86				0.95				464,598				941				0.81
Total interest-bearing liabilities		1,470,905				6,795				1.85				1,738,160				5,332				1.23
Demand deposits		587,957												489,722
Demand deposits - discontinued operations		9,851												143,391
Other liabilities		31,670												34,255
Shareholders' equity		340,119												312,543
Total liabilities and shareholders' equity		$	2,440,502											$	2,718,071
Net interest spread - continuing operations										2.94		%										2.96		%
Net interest income and net interest margin - continuing operations(2)						$	19,977			3.61		%						$	18,543			3.51		%
Net interest income and net interest margin(2)						$	19,938			3.56		%						$	22,112			3.54		%
Non-taxable equivalent net interest margin										3.54		%										3.52		%
(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.
Average Balance Sheets and Net Interest Margin Analysis
Selected Financial Information
		Six months ended
		June 30, 2019												June 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		$	81,339			$	913			2.26		%		$	87,907			$	959			2.20		%
Other short-term investments		7,815				118				3.04				9,801				127				2.61
Investment securities:
Taxable investment securities		300,255				3,962				2.66				377,038				4,328				2.31
Non-taxable investment securities(1)		79,709				1,196				3.03				77,239				1,152				3.01
Total investment securities		379,964				5,158				2.74				454,277				5,480				2.43
Loans - continuing operations		1,708,549				46,306				5.47				1,538,504				37,241				4.88
FHLB and FRB stock		13,487				488				7.30				18,630				509				5.51
Total interest-earning assets - continuing operations		2,191,154				52,983				4.88				2,109,119				44,316				4.24
Loans held for sale - discontinued operations		235,384				4,588				3.93				394,471				9,213				4.71
Total interest-earning assets		2,426,538				57,571				4.78				2,503,590				53,529				4.31
Non-earning assets		207,175												207,893
Total assets		$	2,633,713											$	2,711,483
Liabilities
Interest bearing deposits:
NOW, money market, and savings		1,125,253				8,988				1.61				933,699				4,139				0.89
Time deposits		11,049				88				1.61				9,828				53				1.09
Brokered deposits		93,903				1,203				2.58				109,058				947				1.75
Total interest-bearing deposits		1,230,205				10,279				1.68				1,052,585				5,139				0.98
Total borrowings		43,798				556				2.56				166,402				1,442				1.75
Total long-term debt		49,740				1,647				6.68				49,571				1,652				6.72
Total interest-bearing liabilities - continuing operations		1,323,743				12,482				1.90				1,268,558				8,233				1.31
Interest-bearing liabilities - discontinued operations		290,515				1,502				1.04				461,331				1,564				0.68
Total interest-bearing liabilities		1,614,258				13,984				1.75				1,729,889				9,797				1.14
Demand deposits		571,669												496,239
Demand deposits - discontinued operations		79,156												139,667
Other liabilities		38,111												35,990
Shareholders' equity		330,519												309,698
Total liabilities and shareholders' equity		$	2,633,713											$	2,711,483
Net interest spread - continuing operations										2.98		%										2.94		%
Net interest income and net interest margin - continuing operations(2)						$	40,501			3.73		%						$	36,083			3.45		%
Net interest income and net interest margin(2)						$	43,587			3.62		%						$	43,732			3.52		%
Non-taxable equivalent net interest margin										3.61		%										3.51		%
(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)		June 30, 2019				March 31, 2019				December 31, 2018				September 30, 2018				June 30, 2018				Linked Quarter Change				Year Over Year Change
Loans held for sale
Loans held for sale		$	—			$	1,530			$	5,889			$	1,886			$	1,612			$	(1,530	)		$	(1,612	)
Loans held for sale - discontinued operations		—				384,779				373,030				375,976				382,732				(384,779		)		(382,732		)
Total loans held for sale		$	—			$	386,309			$	378,919			$	377,862			$	384,344			$	(386,309	)		$	(384,344	)
Loans held for investment
Commercial loans:
Commercial and industrial		$	701,566			$	679,489			$	645,374			$	581,737			$	546,497			$	22,077			$	155,069
Commercial real estate:
Multifamily		43,907				43,929				88,826				108,001				92,013				(22		)		(48,106		)
Owner occupied		313,310				304,945				298,291				295,801				265,576				8,365				47,734
Investment		409,629				394,087				407,711				409,145				386,072				15,542				23,557
Construction and land:
1-4 family residential construction		3,696				2,067				1,006				—				378				1,629				3,318
Other construction, development, and land		195,260				171,818				155,226				147,114				134,764				23,442				60,496
Mortgage warehouse loans		10,665				22,267				27,967				27,838				38,352				(11,602		)		(27,687		)
Total commercial loans		1,678,033				1,618,602				1,624,401				1,569,636				1,463,652				59,431				214,381
Residential:
Residential mortgages		31,338				32,915				32,800				24,904				20,270				(1,577		)		11,068
Home equity		24,303				23,171				22,822				33,410				32,638				1,132				(8,335		)
Total residential loans		55,641				56,086				55,622				58,314				52,908				(445		)		2,733
Consumer		34,618				35,203				25,851				26,825				25,531				(585		)		9,087
Other		24,126				26,663				24,712				10,579				12,409				(2,537		)		11,717
		1,792,418				1,736,554				1,730,586				1,665,354				1,554,500				55,864				237,918
Less net deferred fees and other unearned income		(2,678		)		(1,997		)		(2,513		)		(2,896		)		(2,921		)		(681		)		243
Total loans held for investment		$	1,789,740			$	1,734,557			$	1,728,073			$	1,662,458			$	1,551,579			$	55,183			$	238,161
Total loans		$	1,789,740			$	2,120,866			$	2,106,992			$	2,040,320			$	1,935,923			$	(331,126	)		$	(146,183	)
(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)		Second Quarter				First  Quarter				Fourth Quarter				Third Quarter				Second Quarter
Balance at beginning of period		$	18,107			$	17,851			$	20,443			$	19,583			$	19,885
Provision for loan losses		698				814				595				758				(173		)
Provision for loan losses (reversal of provision) - discontinued operations		—				—				(3,097		)		—				—
Provision for PCI loan losses		—				—				(93		)		87				—
Loans charged-off:
Commercial and industrial		(588		)		(549		)		—				—				—
Commercial real estate		(47		)		—				—				—				(50		)
Construction and land		—				—				—				—				—
Residential mortgages		—				(9		)		(5		)		—				—
Home equity		—				—				—				—				(102		)
Consumer		—				(37		)		(3		)		—				(10		)
Other		—				—				—				—				—
Total loans charged-off		(635		)		(595		)		(8		)		—				(162		)
Recoveries on loans previously charged-off:
Commercial and industrial		—				14				—				—				—
Commercial real estate		—				—				—				—				28
Construction and land		—				3				—				—				—
Residential mortgages		—				7				4				—				—
Home equity		—				1				—				—				—
Consumer		16				12				7				15				5
Other		—				—				—				—				—
Total recoveries		16				37				11				15				33
Net charge-offs		$	(619	)		$	(558	)		$	3			$	15			$	(129	)
Balance at period end (1)		$	18,186			$	18,107			$	17,851			$	20,443			$	19,583
Loans
Loans held for sale		$	—			$	1,530			$	5,889			$	1,886			$	1,612
Loans held for sale - discontinued operations		—				384,779				373,030				375,976				382,732
Loans held for investment - continuing operations		1,789,740				1,734,557				1,728,073				1,662,458				1,551,579
Total loans		$	1,789,740			$	2,120,866			$	2,106,992			$	2,040,320			$	1,935,923
Non-performing loans - continuing operations (4)		$	6,352			$	8,830			$	3,252			$	2,160			$	1,697
Non-performing loans - discontinued operations (4)		—				1,506				1,924				556				709
Total non-performing loans		6,352				10,336				5,176				2,716				2,406
Foreclosed properties (OREO)		971				971				874				968				1,288
Total nonperforming assets		$	7,323			$	11,307			$	6,050			$	3,684			$	3,694
Allowance for loan losses to loans held for investment (2)		1.02			%	1.04			%	1.03			%	1.00			%	1.01			%
Net charge-offs to average loans (3)		0.14				0.11				—				—				0.03
Non-performing loans as a percentage of total loans - continuing operations (4)		0.35			%	0.51			%	0.19			%	0.13			%	0.11			%
Non-performing loans as a percentage of total loans - discontinued operations (4)		—				0.39				0.52				0.15				0.19
Non-performing loans as a percentage of total loans (4)		0.35				0.49				0.25				0.13				0.12
Non-performing assets as a percentage of total assets - continuing operations (4)		0.31			%	0.34			%	0.14			%	0.11			%	0.11			%
Non-performing assets as a percentage of total assets - discontinued operations (4)		—				0.05				0.07				0.02				0.03
Non-performing assets as a percentage of total assets (4)		0.31				0.40				0.20				0.13				0.14
(1)The allowance for loan losses has not been adjusted retrospectively in periods prior to December 31, 2018.  (2)The second quarter 2019, 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)		June 30, 2019				March 31, 2019				December 31, 2018				September 30, 2018				June 30, 2018				Linked Quarter Change				Year Over Year Change
DDA		$	569,693			$	561,829			$	602,252			$	518,155			$	464,282			$	7,864			$	105,411
NOW		309,709				233,838				252,490				407,214				241,461				75,871				68,248
Savings		1,090				896				725				698				951				194				139
Money market		802,973				962,741				987,183				759,583				647,247				(159,768		)		155,726
Time		33,902				22,069				10,623				10,396				10,359				11,833				23,543
Brokered		134,164				65,811				99,241				79,119				92,656				68,353				41,508
Total deposits - continuing operations		1,851,531				1,847,184				1,952,514				1,775,165				1,456,956				4,347				394,575
Deposits to be assumed - discontinued operations		—				593,264				585,429				604,659				609,631				(593,264		)		(609,631		)
Total deposits		$	1,851,531			$	2,440,448			$	2,537,943			$	2,379,824			$	2,066,587			$	(588,917	)		$	(215,056	)
Payments clients		$	301,413			$	361,192			$	397,608			$	258,320			$	251,748			$	(59,779	)		$	49,665
Average Deposits
		2019								2018												Linked Quarter Change				Q2 2019 vs Q2 2018
(dollars in thousands)		Second Quarter				First  Quarter				Fourth Quarter				Third Quarter				Second Quarter
DDA		$	587,957			$	575,453			$	597,239			$	561,355			$	489,722			$	12,504			$	98,235
NOW		314,601				276,212				280,449				314,759				287,283				38,389				27,318
Savings		956				884				712				616				674				72				282
Money market		859,680				847,254				798,017				697,578				645,034				12,426				214,646
Time		32,358				12,847				10,117				10,406				9,855				19,511				22,503
Brokered		106,524				81,141				93,558				67,937				100,425				25,383				6,099
Total deposits - continuing operations		1,902,076				1,793,791				1,780,092				1,652,651				1,532,993				108,285				369,083
Deposits to be assumed - discontinued operations		45,350				593,313				600,769				601,421				602,832				(547,963		)		(557,482		)
Total deposits		$	1,947,426			$	2,387,104			$	2,380,861			$	2,254,072			$	2,135,825			$	(439,678	)		$	(188,399	)
Payments clients		$	285,949			$	295,059			$	263,800			$	227,029			$	219,016			$	(9,110	)		$	66,933
Noninterest bearing deposits as a percentage of average deposits - continuing operations		30.9		%		32.1		%		33.6		%		34.0		%		31.9		%
Cost of deposits - continuing operations		1.15		%		1.09		%		0.93		%		0.76		%		0.71		%

ATLANTIC CAPITAL BANCSHARES, INC.
Non-GAAP Performance and Financial Measures Reconciliation
		2019								2018												For the six months ended June 30,
(in thousands, except share and per share data)		Second Quarter				First Quarter				Fourth Quarter				Third Quarter				Second Quarter				2019				2018
Taxable equivalent interest income reconciliation
Interest income - GAAP		$	26,598			$	26,197			$	26,628			$	24,017			$	22,836			$	52,795			$	44,115
Taxable equivalent adjustment		88				100				97				97				98				188				201
Interest income - taxable equivalent		$	26,686			$	26,297			$	26,725			$	24,114			$	22,934			$	52,983			$	44,316
Taxable equivalent net interest income reconciliation
Net interest income - GAAP		$	19,889			$	20,424			$	21,068			$	19,297			$	18,444			$	40,313			$	35,882
Taxable equivalent adjustment		88				100				97				97				98				188				201
Net interest income - taxable equivalent		$	19,977			$	20,524			$	21,165			$	19,394			$	18,542			$	40,501			$	36,083
Taxable equivalent net interest margin reconciliation - continuing operations
Net interest margin - GAAP - continuing operations		3.60			%	3.72			%	3.64			%	3.46			%	3.49			%	3.71			%	3.43			%
Impact of taxable equivalent adjustment		0.01				0.02				0.02				0.02				0.02				0.02				0.02
Net interest margin - taxable equivalent - continuing operations		3.61			%	3.74			%	3.66			%	3.48			%	3.51			%	3.73			%	3.45			%
Taxable equivalent net interest margin reconciliation
Net interest margin - GAAP		3.54			%	3.66			%	3.60			%	3.45			%	3.52			%	3.61			%	3.51			%
Impact of taxable equivalent adjustment		0.02				0.02				0.02				0.02				0.02				0.01				0.01
Net interest margin - taxable equivalent		3.56			%	3.68			%	3.62			%	3.47			%	3.54			%	3.62			%	3.52			%
Income before income taxes reconciliation
Income before income taxes - GAAP		$	8,878			$	8,151			$	8,522			$	8,835			$	10,460			$	17,029			$	17,000
Taxable equivalent adjustment		88				100				97				97				98				188				201
Income before income taxes		$	8,966			$	8,251			$	8,619			$	8,932			$	10,558			$	17,217			$	17,201
Income tax reconciliation
Income tax expense - GAAP		$	1,869			$	1,711			$	1,039			$	1,837			$	2,082			$	3,580			$	3,431
Taxable equivalent adjustment		88				100				97				97				98				188				201
Income tax expense		$	1,957			$	1,811			$	1,136			$	1,934			$	2,180			$	3,768			$	3,632
Tangible book value per common share reconciliation
Total shareholders’ equity		$	336,715			$	320,627			$	323,653			$	320,237			$	316,770			$	336,715			$	316,770
Intangible assets		(19,925		)		(22,848		)		(23,095		)		(23,367		)		(23,662		)		(19,925		)		(23,662		)
Total tangible common equity		$	316,790			$	297,779			$	300,558			$	296,870			$	293,108			$	316,790			$	293,108
Common shares outstanding		23,293,465				24,466,964				25,290,419				26,103,666				26,102,217				23,293,465				26,102,217
Book value per common share - GAAP		$	14.46			$	13.10			$	12.80			$	12.27			$	12.14			$	14.46			$	12.14
Tangible book value		13.60				12.17				11.88				11.37				11.23				13.60				11.23
Tangible common equity to tangible assets reconciliation
Total shareholders’ equity		$	336,715			$	320,627			$	323,653			$	320,237			$	316,770			$	336,715			$	316,770
Intangible assets		(19,925		)		(22,848		)		(23,095		)		(23,367		)		(23,662		)		(19,925		)		(23,662		)
Total tangible common equity		$	316,790			$	297,779			$	300,558			$	296,870			$	293,108			$	316,790			$	293,108
Total assets		$	2,389,680			$	2,855,887			$	2,955,440			$	2,882,721			$	2,690,674			$	2,389,680			$	2,690,674
Intangible assets		(19,925		)		(22,848		)		(23,095		)		(23,367		)		(23,662		)		(19,925		)		(23,662		)
Total tangible assets		$	2,369,755			$	2,833,039			$	2,932,345			$	2,859,354			$	2,667,012			$	2,369,755			$	2,667,012
Tangible common equity to tangible assets		13.37			%	10.51			%	10.25			%	10.38			%	10.99			%	13.37			%	10.99			%