10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

_______________________________________________

FORM 10-Q

_______________________________________________

(Mark One)

ý QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES AND EXCHANGE ACT OF 1934

For the quarterly period ended June 30, 2017

OR

¨ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES AND EXCHANGE ACT OF 1934

For the transition period from              to             

COMMISSION FILE NO. 001-37615

_________________________________________________

ATLANTIC CAPITAL BANCSHARES, INC.

(Exact Name of Registrant as Specified in its Charter)

_________________________________________________

Georgia	20-5728270
(State of Incorporation)	(I.R.S. Employer Identification No.)
3280 Peachtree Road NE, Suite 1600 Atlanta, Georgia	30305
(Address of principal executive offices)	(Zip Code)

(404) 995-6050

(Registrant’s telephone number, including area code)

Not Applicable

(Former name, former address, and former fiscal year, if changed since last report)

Indicate by check mark whether the Registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities and Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the Registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    Yes  ý    No  ¨

Indicate by check mark whether the Registrant has submitted electronically and posted on its Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the Registrant was required to submit and post such files).    Yes  ý    No  ¨

Indicate by check mark whether the Registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See definition of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer	¨		Accelerated filer	ý
Non-accelerated filer	¨	(Do not check if a smaller reporting company)
			Smaller reporting company	¨
			Emerging growth company	ý

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ¨

Indicate by check mark whether the Registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).    Yes  ¨    No  ý

Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date: Common Stock, no par value: 25,661,631 shares outstanding as of August 1, 2017

Atlantic Capital Bancshares, Inc. and Subsidiary

Form 10-Q

INDEX

		Page No.
PART I.	FINANCIAL INFORMATION	1
Item 1.	Financial Statements (Unaudited)	1
	Consolidated Balance Sheets - June 30, 2017 and December 31, 2016	1
	Consolidated Statements of Income - Three and Six Months ended June 30, 2017 and 2016	2
	Consolidated Statements of Comprehensive Income - Three and Six Months ended June 30, 2017 and 2016	3
	Consolidated Statements of Shareholders’ Equity - Six Months ended June 30, 2017 and 2016	4
	Consolidated Statements of Cash Flows - Six Months ended June 30, 2017 and 2016	5
	Notes to Unaudited Consolidated Financial Statements	6
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	34
Item 3.	Quantitative and Qualitative Disclosures about Market Risk	55
Item 4.	Controls and Procedures	55
PART II.	OTHER INFORMATION	56
Item 1.	Legal Proceedings	56
Item 1A.	Risk Factors	56
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	56
Item 3.	Defaults Upon Senior Securities	56
Item 4.	Mine Safety Disclosures	56
Item 5.	Other Information	56
Item 6.	Exhibits	56
SIGNATURES		57
EXHIBIT INDEX		58

PART I - FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS (UNAUDITED)

Atlantic Capital Bancshares, Inc. and Subsidiary

Consolidated Balance Sheets

	June 30, 2017			December 31, 2016
(in thousands, except share data)	(unaudited)
ASSETS
Cash and due from banks	$	45,008		$	36,790
Interest-bearing deposits in banks	36,171			118,039
Other short-term investments	17,459			10,896
Cash and cash equivalents	98,638			165,725
Securities available-for-sale	450,273			347,705
Other investments	26,741			23,806
Loans held for sale	1,744			35,219
Loans held for investment	1,962,091			1,981,330
Less: allowance for loan losses	(21,870		)	(20,595		)
Loans held for investment, net	1,940,221			1,960,735
Branch premises held for sale	—			2,995
Premises and equipment, net	11,997			11,958
Bank owned life insurance	62,901			62,160
Goodwill and intangible assets, net	28,446			29,567
Other real estate owned	1,819			1,872
Other assets	79,795			85,801
Total assets	$	2,702,575		$	2,727,543

LIABILITIES AND SHAREHOLDERS’ EQUITY
Liabilities:
Deposits:
Noninterest-bearing demand	$	612,744		$	643,471
Interest-bearing checking	250,254			264,062
Savings	30,170			27,932
Money market	882,824			912,493
Time	142,915			157,810
Brokered deposits	195,047			200,223
Total deposits	2,113,954			2,205,991
Deposits to be assumed in branch sale	—			31,589
Federal funds purchased and securities sold under agreements to repurchase	15,000			—
Federal Home Loan Bank borrowings	180,000			110,000
Long-term debt	49,451			49,366
Other liabilities	24,735			26,939
Total liabilities	2,383,140			2,423,885
SHAREHOLDERS’ EQUITY
Preferred Stock, no par value – 10,000,000 shares authorized; no shares issued and outstanding as of June 30, 2017 and December 31, 2016	—			—
Common stock, no par value – 100,000,000 shares authorized; 25,654,521 and 25,093,135 shares issued and outstanding as of June 30, 2017, and December 31, 2016, respectively	297,610			292,747
Retained earnings	24,095			16,536
Accumulated other comprehensive (loss) income	(2,270		)	(5,625		)
Total shareholders’ equity	319,435			303,658
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY	$	2,702,575		$	2,727,543

See Accompanying Notes to Consolidated Financial Statements

1

Atlantic Capital Bancshares, Inc. and Subsidiary

Consolidated Statements of Income

(Unaudited)

	Three Months Ended				Six Months Ended
	June 30,				June 30,
(in thousands, except per share data)	2017		2016		2017		2016
INTEREST INCOME
Loans, including fees	$	21,361	$	20,282	$	41,355	$	39,907
Investment securities – available-for-sale	2,355		1,327		4,373		2,928
Interest and dividends on other interest-earning assets	606		507		1,055		780
Total interest income	24,322		22,116		46,783		43,615
INTEREST EXPENSE
Interest on deposits	2,481		1,841		4,528		3,514
Interest on Federal Home Loan Bank advances	452		147		754		191
Interest on federal funds purchased and securities sold under agreements to repurchase	76		87		112		154
Interest on long-term debt	824		832		1,647		1,642
Other	—		—		—		38
Total interest expense	3,833		2,907		7,041		5,539
NET INTEREST INCOME BEFORE PROVISION FOR LOAN LOSSES	20,489		19,209		39,742		38,076
Provision for loan losses	1,980		777		2,614		1,145
NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES	18,509		18,432		37,128		36,931
NONINTEREST INCOME
Service charges	1,274		1,392		2,623		2,890
Gain on sales of securities available-for-sale	—		11		—		44
Gain on sales of other assets	666		31		744		79
Mortgage income	388		447		645		786
Trust income	488		386		895		700
Derivatives income	116		98		65		163
Bank owned life insurance	384		398		762		791
SBA lending activities	1,171		1,204		2,398		2,084
TriNet lending activities	20		761		40		1,144
Gains on sale of branches	302		3,885		302		3,885
Other noninterest income	478		267		670		734
Total noninterest income	5,287		8,880		9,144		13,300
NONINTEREST EXPENSE
Salaries and employee benefits	10,603		10,420		21,668		20,975
Occupancy	1,074		1,274		2,304		2,374
Equipment and software	996		724		1,801		1,410
Professional services	973		760		1,877		1,508
Postage, printing and supplies	78		159		163		328
Communications and data processing	1,069		694		2,056		1,610
Marketing and business development	179		317		449		584
FDIC premiums	132		493		446		891
Merger and conversion costs	304		1,210		304		1,959
Amortization of intangibles	425		668		895		1,430
Foreclosed property/problem asset expense	107		55		110		159
Other noninterest expense	1,683		2,169		3,294		3,981
Total noninterest expense	17,623		18,943		35,367		37,209
INCOME BEFORE PROVISION FOR INCOME TAXES	6,173		8,369		10,905		13,022
Provision for income taxes	1,844		3,222		3,346		4,944
NET INCOME	$	4,329	$	5,147	$	7,559	$	8,078
NET INCOME PER SHARE:
Net income per share – basic	$	0.17	$	0.21	$	0.30	$	0.33
Net income per share – diluted	$	0.17	$	0.20	$	0.29	$	0.32

See Accompanying Notes to Consolidated Financial Statements

2

Atlantic Capital Bancshares, Inc. and Subsidiary

Consolidated Statements of Comprehensive Income

(Unaudited)

	Three Months Ended					Six Months Ended
	June 30,					June 30,
(in thousands)	2017		2016			2017			2016
Net income	$	4,329	$	5,147		$	7,559		$	8,078
Other comprehensive income
Unrealized gains (losses) on available-for-sale securities:
Unrealized holding gains arising during the period, net of tax of $1,951, $1,043, $2,178, and $2,683, respectively	3,118		1,660			3,482			4,295
Reclassification adjustment for gains included in net income net of tax of $0, ($4), $0, and ($17), respectively	—		(7		)	—			(27		)
Unrealized gains on available-for-sale securities, net of tax	3,118		1,653			3,482			4,268
Cash flow hedges:
Net unrealized derivative gains (losses) on cash flow hedges, net of tax of $12, $106, ($79), and $470, respectively	19		169			(127		)	742
Changes from cash flow hedges	19		169			(127		)	742
Other comprehensive income, net of tax	3,137		1,822			3,355			5,010
Comprehensive income	$	7,466	$	6,969		$	10,914		$	13,088

See Accompanying Notes to Consolidated Financial Statements

3

Atlantic Capital Bancshares, Inc. and Subsidiary

Consolidated Statements of Shareholders’ Equity

(Unaudited)

	Common Stock					Accumulated Other Comprehensive Income (Loss)
(in thousands, except share data)	Shares	Amount		Retained Earnings					Total
Balance - December 31, 2015	24,425,546	$	286,367	$	3,141	$	(1,516	)	$	287,992
Comprehensive income:
Net Income	—	—		8,078		—			8,078
Change in unrealized gains on investment securities available-for-sale, net	—	—		—		4,268			4,268
Change in unrealized gains on cash flow hedges	—	—		—		742			742
Total comprehensive income									13,088
Issuance of restricted stock	61,884	—		—		—			—
Issuance of common stock for option exercises	196,584	1,349		—		—			1,349
Issuance of common stock for long-term incentive plan	66,149	884		—		—			884
Restricted stock activity	—	307		—		—			307
Stock-based compensation	—	446		—		—			446
Balance - June 30, 2016	24,750,163	$	289,353	$	11,219	$	3,494		$	304,066
Balance - December 31, 2016	25,093,135	$	292,747	$	16,536	$	(5,625	)	$	303,658
Comprehensive income:
Net Income	—	—		7,559		—			7,559
Change in unrealized gains on investment securities available-for-sale, net	—	—		—		3,482			3,482
Change in unrealized gains (losses) on cash flow hedges	—	—		—		(127		)	(127		)
Total comprehensive income									10,914
Issuance of restricted stock	61,715	—		—		—			—
Issuance of common stock for option exercises	437,872	2,901		—		—			2,901
Issuance of common stock for long-term incentive plan	61,799	1,209		—		—			1,209
Restricted stock activity	—	473		—		—			473
Stock-based compensation	—	280		—		—			280
Balance - June 30, 2017	25,654,521	$	297,610	$	24,095	$	(2,270	)	$	319,435

See Accompanying Notes to Consolidated Financial Statements

4

Atlantic Capital Bancshares, Inc. and Subsidiary

Consolidated Statements of Cash Flows (Unaudited)

	Six Months Ended
	June 30,
(in thousands)	2017			2016
OPERATING ACTIVITIES
Net income	$	7,559		$	8,078
Adjustments to reconcile net income to net cash provided by operating activities
Provision for loan losses	2,614			1,145
Depreciation, amortization, and accretion	2,757			2,960
Amortization of restricted stock compensation	473			307
Stock option compensation	280			446
Gain on sales of available-for-sale securities	—			(44		)
Loss on disposition of premises and equipment, net	347			—
Net gains on sales of other real estate owned	(222		)	(64		)
Gain on sale of tax credit	(426		)	—
Net increase in cash value of bank owned life insurance	(741		)	(770		)
Net gains on sale of branches	(302		)	(3,885		)
Origination of servicing assets	(593		)	(967		)
Proceeds from sales of SBA loans	27,239			26,975
Net gains on sale of SBA loans	(1,901		)	(1,893		)
Proceeds from sales of TriNet loans	—			97,039
Net gains on sale of TriNet loans	—			(1,144		)
Changes in operating assets and liabilities -
Net change in loans held for sale	9,117			(29,480		)
Net (increase) decrease in other assets	7,827			1,038
Net increase (decrease) in accrued expenses and other liabilities	9,983			7,525
Net cash provided by operating activities	64,011			107,266
INVESTING ACTIVITIES
Activity in securities available-for-sale:
Prepayments	22,563			21,147
Maturities and calls	1,690			20,932
Sales	—			65,103
Purchases	(121,417		)	(77,270		)
Net increase in loans held for investment	(7,872		)	(213,434		)
Purchases of Federal Home Loan Bank stock, net	(3,059		)	(11,544		)
Purchases of Federal Reserve Bank stock, net	(91		)	(3,055		)
Proceeds from sales of other real estate	709			1,146
Net cash received (paid) for branch divestiture	5,379			(140,295		)
Purchases of premises and equipment, net	(1,183		)	(417		)
Net cash used in investing activities	(103,281		)	(337,687		)
FINANCING ACTIVITIES
Net change in deposits	(101,062		)	86,334
Proceeds from Federal Home Loan Bank advances	1,049,000			570,000
Repayments of Federal Home Loan Bank advances	(979,000		)	(330,000		)
Proceeds from exercise of stock options	3,245			1,446
Net cash (used in) provided by financing activities	(27,817		)	327,780
NET CHANGE IN CASH AND CASH EQUIVALENTS	(67,087		)	97,359
CASH AND CASH EQUIVALENTS – beginning of period	165,725			202,885
CASH AND CASH EQUIVALENTS – end of period	$	98,638		$	300,244
	Six Months Ended
	June 30,
	2017			2016
SUPPLEMENTAL SCHEDULE OF CASH FLOWS
Interest paid	$	7,420		$	5,772
Income taxes paid	$	230		$	(2,372	)

See Accompanying Notes to Consolidated Financial Statements

5

ATLANTIC CAPITAL BANCSHARES, INC. AND SUBSIDIARY

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

NOTE 1 – ACCOUNTING POLICIES AND BASIS OF PRESENTATION

Basis of Presentation

The accounting and financial reporting policies of Atlantic Capital Bancshares, Inc. (“Atlantic Capital” or the “Company”) and its subsidiary conform to accounting principles generally accepted in the United States of America (“GAAP”) and general banking industry practices. The accompanying interim consolidated financial statements have not been audited. All material intercompany balances and transactions have been eliminated.

In management’s opinion, all accounting adjustments necessary to accurately reflect the financial position and results of operations on the accompanying financial statements have been made. These adjustments are normal and recurring accruals considered necessary for a fair and accurate presentation. The accompanying consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto included in Atlantic Capital’s filing on Form 10-K. The results for interim periods are not necessarily indicative of results for the full year or any other interim periods. Certain prior period amounts have been reclassified to conform to the current year presentation.

NOTE 2 – ACCOUNTING STANDARDS UPDATES AND RECENTLY ADOPTED STANDARDS

In May 2017, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2017-09 - “Compensation - Stock Compensation (Topic 718): Scope and Modification Accounting.” The amendments in this ASU provide guidance about which changes to the terms or conditions of a share-based payment award require an entity to apply modification accounting in accordance with Topic 718. The amendments will be effective for interim and annual reporting periods beginning after December 15, 2017. This ASU is not expected to have a material impact on Atlantic Capital’s consolidated financial statements.

In March 2017, the FASB issued ASU 2017-08 “Receivables - Nonrefundable Fees and Other Costs (Subtopic 310-20): Premium Amortization on Purchased Callable Debt Securities.” This guidance shortens the premium amortization period for certain callable debt securities by requiring amortization to the earliest call date. The standard is effective for public companies for annual and interim periods beginning after December 15, 2020. The adoption of this update is not expected to have a material impact on Atlantic Capital’s consolidated financial statements.

In January 2017, the FASB issued ASU 2017-04, “Intangibles - Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment,” which intends to simplify goodwill impairment testing by eliminating the second step of the analysis under which the implied fair value of goodwill is determined as if the reporting unit were being acquired in a business combination. The update instead requires entities to compare the fair value of a reporting unit with its carrying amount and recognize an impairment charge for any amount by which the carrying amount exceeds the reporting unit’s fair value, to the extent that the loss recognized does not exceed the amount of goodwill allocated to that reporting unit. ASU 2017-04 must be applied prospectively and is effective for the Company on January 1, 2020. Early adoption is permitted. Atlantic Capital does not expect the new guidance to have a material impact on its financial condition or results of operation.

In August 2016, the FASB issued ASU 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments, to address diversity in how certain cash receipts and cash payments are presented and classified in the statement of cash flows. The amendments provide guidance on the following eight specific cash flow issues: 1) debt prepayment or debt extinguishment costs; 2) settlement of zero-coupon debt instruments or other debt instruments with coupon interest rates that are insignificant in relation to the effective interest rate of the borrowing; 3) contingent consideration payments made after a business combination; 4) proceeds from the settlement of insurance claims; 5) proceeds from the settlement of corporate-owned life insurance policies, including bank-owned life insurance policies; 6) distributions received from equity method investees; 7) beneficial interests in securitization transactions; and 8) separately identifiable cash flows and application of the predominance principle. The amendments are effective for public companies for fiscal years beginning after December 31, 2017, and interim periods within those fiscal years. Early adoption is permitted, including adoption in an interim period. As this guidance only affects the classification within the statement of cash flows, this ASU is not expected to have a material impact on the Company’s consolidated financial statements.

In June 2016, the FASB issued ASU 2016-13 “Financial Instruments - Credit Losses (Topic 326) Measurement of Credit Losses on Financial Instruments.” ASU 2016-13 requires an entity to utilize a new impairment model known as the current expected credit loss (“CECL”) model to estimate its lifetime “expected credit loss” and record an allowance that, when deducted from the amortized cost basis of the financial asset, presents the net amount expected to be collected on the financial asset. The CECL model

6

is expected to result in more timely recognition of credit losses. ASU 2016-13 also requires new disclosures for financial assets measured at amortized cost, loans and available-for-sale debt securities. ASU 2016-13 is effective for public companies for annual periods beginning after December 13, 2019, including interim periods within those fiscal years. Entities will apply the standard’s provisions as a cumulative-effect adjustment to retained earnings as of the beginning of the first reporting period in which the guidance is adopted. Atlantic Capital is in the process of evaluating the impact of the adoption of ASU 2016-13 on the Company’s consolidated financial statements and disclosures.

In March 2016, the FASB issued ASU 2016-09, Compensation - Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting. The amendments in ASU 2016-09 simplify several aspects of accounting for employee share-based payments including income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash flows. Some areas of the simplification apply only to nonpublic entities. The new guidance will require all income tax effects of awards to be recognized as income tax expense or benefit in the income statement when the awards vest or are settled and additional paid in capital pools will be eliminated. The guidance requires companies to present excess tax benefits as an operating activity on the statement of cash flows rather than as a financing activity. Companies will be required to account for forfeitures of share-based payments by recognizing forfeitures of awards as they occur or estimating the number of awards expected to be forfeited and adjusting the estimate when it is likely to change, as currently required, through an accounting policy election. The guidance will increase the amount an employer can withhold to cover income taxes on awards and still qualify for the exception to liability classification for shares used to satisfy the employer’s income tax withholding obligation. The guidance requires an employer to classify the cash paid to a tax authority when shares are withheld to satisfy its statutory income tax withholding obligation as a financing activity on the statement of cash flows. ASU 2016-09 became effective for the Company on January 1, 2017 and did not have a material effect on its financial position or results of operations.

In February 2016, the FASB issued ASU 2016-2, Leases. Under the new guidance, leases classified as operating leases under previous GAAP must be recorded on the balance sheet. A lessee should recognize in the statement of financial position a liability to make lease payments (the lease liability) and a right-of-use asset representing its right to use the underlying asset for the lease term. The standard is effective for public companies for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. Early adoption is permitted. The new standard must be adopted using a modified retrospective transition, and provides for certain practical expedients. Atlantic Capital is evaluating the significance and other effects of adoption on the consolidated financial statements and related disclosures.

In January 2016, the FASB issued ASU 2016-1, Financial Instruments – Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Liabilities. The guidance in this update requires that equity investments (except those accounting for under the equity method of accounting) be measured at fair value with changes in fair value recognized in net income. However, an entity may choose to measure equity investments that do not have readily determinable fair values at cost minus impairment, if any, plus or minus changes resulting from observable price changes in orderly transactions for the identical or a similar investment of the same issuer. The guidance also simplifies the impairment assessment of equity investments without readily determinable fair values by requiring a qualitative assessment to identify impairment. In addition, the guidance addresses various disclosure and presentation issues related to financial instruments. For public entities, this update is effective for fiscal years beginning after December 15, 2017 with early application permitted. The adoption of this update is not expected to have a material impact on Atlantic Capital’s consolidated financial statements.

In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers. This update is a joint project with the International Accounting Standards Board initiated to clarify the principles for recognizing revenue and to develop a common revenue standard that is meant to remove inconsistencies and weaknesses in revenue requirements, provide a more robust framework for addressing revenue issues, improve comparability of revenue recognition practices, provide more useful information to users of financial statements and simplify the preparation of financial statements. The core principle of the guidance is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. For public companies, this guidance is effective for annual and interim periods beginning after December 15, 2017. Because the guidance does not apply to revenue associated with financial instruments, including loans and securities, Atlantic Capital does not expect this ASU to have a material impact on net interest income and securities gains. Atlantic Capital completed an initial evaluation of the impact to other revenue streams such as service charges and trust income, and believes the most significant changes will be related to disclosures.

7

NOTE 3 – ACQUISITIONS AND DIVESTITURES

On October 31, 2015, Atlantic Capital completed the acquisition of First Security Group, Inc. (“First Security”). First Security operated twenty-five branches in Georgia and Tennessee. In connection with the acquisition, Atlantic Capital acquired approximately $801.1 million of loans and assumed approximately $970.0 million of deposits.

Acquisition-related costs totaled $304,000 for the three and six months ended June 30, 2017, respectively, and $1.2 million and $2.0 million for the three and six months ended June 30, 2016, respectively, and were included in noninterest expense in the consolidated income statement. Acquisition related costs primarily include severance costs, professional services, data processing fees related to systems conversion and other noninterest expenses.

Divestiture of Branches

On December 17, 2015, Atlantic Capital Bank, N.A. (the “Bank”) entered into two separate definitive agreements to sell seven branches in the Tennessee market. The agreement with First Freedom Bank included the sale of three branches located in Algood, Cookeville and Gainesboro, Tennessee for a premium of 2.25% of deposits. The agreement with Athens Federal Community Bank, N.A. included the sale of four branches in Athens, Lenoir City, Madisonville and Sweetwater, Tennessee for a premium of 3.50% of deposits. Both transactions closed in the second quarter of 2016 and resulted in a combined gain of $3.9 million as well as a reduction of approximately $191.0 million in deposits, approximately $34.7 million in loans and approximately $8.6 million in other assets. The gain was somewhat reduced by an impairment of $2.0 million in core deposit intangibles, which was offset by a $344,000 reversal in time deposit premium. There were also $305,000 of expenses associated with the divestitures included in noninterest expense in the second quarter of 2016.

On December 9, 2016, Atlantic Capital entered into a definitive agreement to sell one branch in Cleveland, Tennessee, to SmartBank. The sale closed in the second quarter of 2017, and resulted in a net gain of $302,000 as well as a reduction of approximately $21.9 million in deposits and approximately $27.3 million in loans and other assets. The gross gain of $533,000 was reduced by an impairment of $337,000 in core deposit intangibles, which was offset by a $106,000 reversal in time deposit premium. There were also $38,000 of expenses associated with the divestiture included in noninterest expense in the second quarter of 2017.

8

NOTE 4 – BALANCE SHEET OFFSETTING

Atlantic Capital enters into reverse repurchase agreements in order to invest short-term funds. Atlantic Capital enters into repurchase agreements for short-term financing needs.

The following table presents a summary of amounts outstanding under reverse repurchase agreements, repurchase agreements, and derivative financial instruments including those entered into in connection with the same counterparty under master netting agreements as of June 30, 2017 and December 31, 2016. While these agreements are typically over-collateralized, U.S. GAAP requires disclosures in this table to limit the amount of such collateral to the amount of the related recognized asset or liability for each counterparty.

(in thousands)							Gross Amounts not Offset in the Balance Sheet
June 30, 2017	Gross Amounts of Recognized Assets		Gross Amounts Offset on the Balance Sheet		Net Asset Balance		Financial Instruments			Cash Collateral Received			Net Amount
Reverse repurchase agreements	$	17,459	$	—	$	17,459	$	(17,459	)	$	—		$	—
Derivatives	4,150		—		4,150		—			—			4,150
Total	$	21,609	$	—	$	21,609	$	(17,459	)	$	—		$	4,150
							Gross Amounts not Offset in the Balance Sheet
	Gross Amounts of Recognized Liabilities		Gross Amounts Offset on the Balance Sheet		Net Liability Balance		Financial Instruments			Cash Collateral Pledged			Net Amount
Repurchase agreements	$	—	$	—	$	—	$	—		$	—		$	—
Derivatives	4,244		—		4,244		(2,929		)	(1,315		)	—
Total	$	4,244	$	—	$	4,244	$	(2,929	)	$	(1,315	)	$	—
							Gross Amounts not Offset in the Balance Sheet
December 31, 2016	Gross Amounts of Recognized Assets		Gross Amounts Offset on the Balance Sheet		Net Asset Balance		Financial Instruments			Cash Collateral Received			Net Amount
Reverse repurchase agreements	$	10,896	$	—	$	10,896	$	(10,896	)	$	—		$	—
Derivatives	4,310		—		4,310		—			—			4,310
Total	$	15,206	$	—	$	15,206	$	(10,896	)	$	—		$	4,310
							Gross Amounts not Offset in the Balance Sheet
	Gross Amounts of Recognized Liabilities		Gross Amounts Offset on the Balance Sheet		Net Liability Balance		Financial Instruments			Cash Collateral Pledged			Net Amount
Repurchase agreements	$	—	$	—	$	—	$	—		$	—		$	—
Derivatives	4,131		—		4,131		(1,818		)	(2,313		)	—
Total	$	4,131	$	—	$	4,131	$	(1,818	)	$	(2,313	)	$	—

9

NOTE 5 – SECURITIES

The following table presents the amortized cost, unrealized gains and losses, and fair value of securities available-for-sale at June 30, 2017 and December 31, 2016.

Available-For-Sale	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
	(in thousands)
June 30, 2017
Debt securities—
U.S. Government agencies	$	35,299	$	105	$	(279	)	$	35,125
U.S. states and political divisions	97,502		316		(3,650		)	94,168
Trust preferred securities	4,741		—		(53		)	4,688
Corporate debt securities	19,777		119		(676		)	19,220
Residential mortgage-backed securities	296,934		3,117		(2,979		)	297,072
Total	$	454,253	$	3,657	$	(7,637	)	$	450,273
December 31, 2016
Debt securities—
U.S. Government agencies	$	21,485	$	24	$	(357	)	$	21,152
U.S. states and political divisions	96,908		141		(6,877		)	90,172
Trust preferred securities	4,727		—		(202		)	4,525
Corporate debt securities	19,928		72		(769		)	19,231
Residential mortgage-backed securities	214,297		2,689		(4,361		)	212,625
Total	$	357,345	$	2,926	$	(12,566	)	$	347,705

The following table presents the amortized cost and fair value of debt securities by contractual maturity at June 30, 2017. Actual maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties.

	Available-For-Sale
	Amortized Cost		Fair Value
	(in thousands)
Within 1 year	$	4,140	$	4,141
Over 1 year through 5 years	17,642		17,472
5 years to 10 years	60,990		60,448
Over 10 years	74,547		71,140
	157,319		153,201
Residential mortgage-backed securities	296,934		297,072
Total	$	454,253	$	450,273

10

The following table summarizes available-for-sale securities in an unrealized loss position as of June 30, 2017 and December 31, 2016.

	Less than 12 months					12 months or greater					Totals
Available-For-Sale	Fair Value		Unrealized Losses			Fair Value		Unrealized Losses			Fair Value		Unrealized Losses
	(in thousands)
June 30, 2017
U.S. Government agencies	$	24,547	$	(207	)	2,673		$	(72	)	$	27,220	$	(279	)
U.S. states and political divisions	75,219		(3,552		)	3,136		(98		)	78,355		(3,650		)
Trust preferred securities	—		—			4,688		(53		)	4,688		(53		)
Corporate debt securities	—		—			5,869		(676		)	5,869		(676		)
Residential mortgage-backed securities	106,559		(1,356		)	69,728		(1,623		)	176,287		(2,979		)
Totals	$	206,325	$	(5,115	)	$	86,094	$	(2,522	)	$	292,419	$	(7,637	)
December 31, 2016
U.S. Government agencies	$	12,250	$	(263	)	$	2,881	$	(94	)	$	15,131	$	(357	)
U.S. states and political divisions	87,511		(6,877		)	—		—			87,511		(6,877		)
Trust preferred securities	—		—			4,525		(202		)	4,525		(202		)
Corporate debt securities	7,886		(769		)	—		—			7,886		(769		)
Residential mortgage-backed securities	151,406		(3,231		)	32,550		(1,130		)	183,956		(4,361		)
Totals	$	259,053	$	(11,140	)	$	39,956	$	(1,426	)	$	299,009	$	(12,566	)

At June 30, 2017, there were 248 available-for-sale securities that were in an unrealized loss position. Atlantic Capital does not intend to sell and does not believe it will be required to sell securities in an unrealized loss position prior to the recovery of their amortized cost basis. Unrealized losses at June 30, 2017 and December 31, 2016 were attributable to changes in interest rates.

Management evaluates securities for other-than-temporary impairment on a quarterly basis. Consideration is given to the length of time and the extent to which the fair value has been less than cost, the financial condition and near-term prospects of the issuer, among other factors. In analyzing an issuer’s financial condition, management considers whether the securities are issued by the federal government or its agencies, whether downgrades by bond rating agencies have occurred, and industry analysts’ reports. No impairment charges were recognized during the three or six months endedJune 30, 2017 or 2016.

Realized gains and losses are derived using the specific identification method for determining the cost of securities sold. The following table summarizes securities sales activity for the three and six months endedJune 30, 2017 and 2016.

	Three Months Ended June 30,					Six Months Ended June 30,
	2017		2016			2017		2016
	(in thousands)
Proceeds from sales	$	—	$	60,150		$	—	$	65,103
Gross realized gains	—		416			—		449
Gross realized losses	—		(405		)	—		(405		)
Net gains on sales of securities	$	—	$	11		$	—	$	44

Investment securities with a carrying value of $99.3 million and $104.9 million were pledged to secure public funds and other borrowings at June 30, 2017 and December 31, 2016, respectively.

11

NOTE 6 – LOANS AND ALLOWANCE FOR LOAN LOSSES

The composition of the loan portfolio as of June 30, 2017 and December 31, 2016, is summarized below.

	June 30, 2017			December 31, 2016
	(in thousands)
Loans held for sale
Branch loans held for sale	$	—		$	30,917
Other loans held for sale	1,744			4,302
Total loans held for sale	$	1,744		$	35,219
Loans held for investment
Commercial loans:
Commercial and industrial	$	578,888		$	531,061
Commercial real estate	982,875			858,778
Construction and land	125,058			219,352
Mortgage warehouse participations	47,992			147,519
Total commercial loans	1,734,813			1,756,710
Residential:
Residential mortgages	101,798			101,921
Home equity	79,769			77,358
Total residential loans	181,567			179,279
Consumer	31,981			27,338
Other	18,013			21,565
Total loans	1,966,374			1,984,892
Less net deferred fees and other unearned income	(4,283		)	(3,562		)
Less allowance for loan losses	(21,870		)	(20,595		)
Loans held for investment, net	$	1,940,221		$	1,960,735

At June 30, 2017 and December 31, 2016, loans with a carrying value of $458.9 million and $474.8 million, respectively, were pledged as collateral to secure FHLB advances and the Federal Reserve discount window.

At June 30, 2017, the carrying value and outstanding balance of Purchased Credit Impaired (“PCI”) loans accounted for under ASC 310-30 was $11.5 million and $14.5 million, respectively. At December 31, 2016, the carrying value and outstanding balance of PCI loans accounted for under ASC 310-30 was $15.3 million and $18.7 million, respectively. The following table presents changes in the value of the accretable yield for acquired loans accounted for under ASC 310-30.

	For the Three Months Ended						For the Six Months Ended
	June 30, 2017			June 30, 2016			June 30, 2017			June 30, 2016
	(in thousands)
Balance at beginning of period	$	3,369		$	2,088		$	3,467		$	2,369
Additions due to acquisitions	—			—			—			—
Accretion	(334		)	(262		)	(779		)	(543		)
Reclassification of nonaccretable discount due to improvement in expected cash flows	92			—			344			—
Other changes, net	3			—			98			—
Balance at end of period	$	3,130		$	1,826		$	3,130		$	1,826

In addition to the accretable yield on PCI loans, the fair value adjustments on purchased loans outside the scope of ASC 310-30 are also accreted to interest income over the life of the loans. At June 30, 2017, the remaining accretable fair value discount on loans acquired through a business combination and not accounted for under ASC 310-30 was $3.0 million compared to $3.9 million at December 31, 2016.

12

The allowance for loan losses represents management’s estimate of probable incurred losses in the loan portfolio as of the end of the period. It is comprised of specific reserves for impaired loans and a general allowance for pools of loans with similar characteristics not individually evaluated. The allowance is regularly evaluated for loan losses to maintain an adequate level to absorb probable current inherent losses in the loan portfolio. Factors contributing to the determination of the allowance include the credit worthiness of the borrower, changes in the value of pledged collateral, and general economic conditions. Most loan commitments rated substandard or worse are specifically reviewed for loss potential. For loans deemed to be impaired, a specific allocation is assigned based on the losses expected to be realized from those loans.

The following table presents the balance and activity in the allowance for credit losses by portfolio segment for the three and six months endedJune 30, 2017 and 2016.

	2017												2016
Three Months Ended June 30,	Commercial			Residential			Consumer			Total			Commercial			Residential			Consumer			Total
	(in thousands)
Allowance for loan losses:
Beginning balance	$	18,101		$	1,406		$	432		$	19,939		$	15,613		$	1,502		$	493		$	17,608
Provision for loan losses	2,582			(540		)	(62		)	1,980			861			(88		)	4			777
Loans charged-off	—			(8		)	(57		)	(65		)	(5		)	(25		)	(38		)	(68		)
Recoveries	9			2			5			16			—			—			60			60
Total ending allowance balance	$	20,692		$	860		$	318		$	21,870		$	16,469		$	1,389		$	519		$	18,377
	2017												2016
Six Months Ended June 30,	Commercial			Residential			Consumer			Total			Commercial			Residential			Consumer			Total
	(in thousands)
Allowance for loan losses:
Beginning balance	$	18,717		$	1,418		$	460		$	20,595		$	16,537		$	1,981		$	387		$	18,905
Provision for loan losses	2,879			(506		)	241			2,614			1,525			(567		)	187			1,145
Loans charged-off	(913		)	(54		)	(389		)	(1,356		)	(1,610		)	(25		)	(184		)	(1,819		)
Recoveries	9			2			6			17			17			—			129			146
Total ending allowance balance	$	20,692		$	860		$	318		$	21,870		$	16,469		$	1,389		$	519		$	18,377

The general component of the allowance for loan losses is based on the incurred losses inherent in the portfolio. The loss factors are determined through the generation of probabilities of default (“PDs”) and losses given default (“LGDs”) for groups of similar loans with similar credit grades where Loss Rate = PD x LGD. The PDs and LGDs for the loan portfolio are calculated based on Atlantic Capital’s loss history as well as available market-based data. The loss factor for each pool of loans is adjusted based on Qualitative and Environmental factors to account for conditions in the current environment which management believes are likely to cause a difference between the calculated loss based on historical performance and the incurred loss in the existing portfolio. These factors include: changes in policies and procedures, changes in the economy, changes in nature or volume of the portfolio and in the terms of loans, changes in lending management, changes in past dues and credit migration, changes in the loan review system, changes in the value of collateral and concentration risk and changes in external factors, such as competition, legal and regulatory. On a quarterly basis, management evaluates these factors in order to determine an adjustment unique to Atlantic Capital and its market.

Charge-offs are recognized when the amount of the loss is quantifiable and timing is known. Collateral based loan charge-offs are measured based on the difference between the loan’s carrying value, including deferred fees, and the estimated net realizable value of the loan. When assessing property value for the purpose of determining a charge-off, a third-party appraisal or an independently derived internal evaluation is generally employed.

A loan is considered to be impaired when, based on current information and events, it is probable that all amounts due according to the contractual terms of the loan agreement will not be collected. Loans for which the terms have been modified resulting in a concession, and for which the borrower is experiencing financial difficulties, are considered troubled debt restructurings (“TDRs”) and classified as impaired. Factors considered by management in determining impairment include payment status, collateral value, and the probability of collecting scheduled principal and interest payments when due. Loans that experience insignificant payment delays and payment shortfalls generally are not classified as impaired. Management determines the significance of payment delays and payment shortfalls on a case-by-case basis, taking into consideration all of the circumstances surrounding the loan and the borrower, including the length of the delay, the reasons for the delay, the borrower’s prior payment record, and the amount of the shortfall in relation to the principal and interest owed. A specific allowance is established for individually evaluated impaired loans as needed. Reserves on impaired loans are measured based on the present value of expected future cash flows discounted at the loan’s effective interest rate or the observable market price, or the fair value of the underlying collateral of the loan if the loan is collateral dependent.

13

Atlantic Capital’s policy is to place loans on nonaccrual status, when, in the opinion of management, the principal and interest on a loan is not likely to be repaid in accordance with the loan terms or when the loan becomes 90 days past due and is not both well secured and in the process of collection. When a loan is classified on nonaccrual status, interest previously accrued but not collected is reversed against current interest revenue. Principal and interest payments received on a nonaccrual loan are applied to reduce outstanding principal.

PCI loans are considered past due or delinquent when the contractual principal or interest due in accordance with the terms of the loan agreement remains unpaid after the due date of the scheduled payment. Loans accounted for under ASC 310-30 were not classified as nonaccrual at June 30, 2017 or December 31, 2016, as the carrying value of the respective loan or pool of loans’ cash flows were considered estimable and collection was probable. Therefore, interest revenue, through accretion of the difference between the carrying value of the loans and the expected cash flows (accretable yield), is being recognized on all acquired loans being accounted for under ASC 310-30.

The balance in the allowance for loan losses and the recorded investment in loans by portfolio segment and based on impairment method is presented in the following table as of June 30, 2017 and December 31, 2016.

June 30, 2017	Commercial		Residential		Consumer		Total
	(in thousands)
Allowance for loan losses:
Ending allowance balance attributable to loans
Individually evaluated for impairment	$	3,249	$	—	$	—	$	3,249
Collectively evaluated for impairment	17,370		860		316		18,546
PCI	73		—		2		75
Total ending allowance balance	$	20,692	$	860	$	318	$	21,870
Loans:
Loans individually evaluated for impairment	$	16,931	$	868	$	—	$	17,799
Loans collectively evaluated for impairment	1,709,411		177,669		49,985		1,937,065
PCI	8,471		3,030		9		11,510
Total ending loans balance	$	1,734,813	$	181,567	$	49,994	$	1,966,374
December 31, 2016	Commercial		Residential		Consumer		Total
	(in thousands)
Allowance for loan losses:
Ending allowance balance attributable to loans
Individually evaluated for impairment	$	2,626	$	58	$	—	$	2,684
Collectively evaluated for impairment	16,018		1,360		459		17,837
PCI	73		—		1		74
Total ending allowance balance	$	18,717	$	1,418	$	460	$	20,595
Loans:
Loans individually evaluated for impairment	$	13,687	$	398	$	—	$	14,085
Loans collectively evaluated for impairment	1,732,324		174,338		48,892		1,955,554
PCI	10,699		4,543		11		15,253
Total ending loans balance	$	1,756,710	$	179,279	$	48,903	$	1,984,892

14

The following tables present information on Atlantic Capital’s impaired loans for the three and six months endedJune 30, 2017 and 2016:

	For the Three Months Ended June 30,
	2017										2016
	Unpaid Principal Balance		Recorded Investment		Related Allowance		Average Balance of Recorded Investment While Impaired		Interest Income Recognized During Impairment		Unpaid Principal Balance		Recorded Investment		Related Allowance		Average Balance of Recorded Investment While Impaired		Interest Income Recognized During Impairment
	(in thousands)
Impaired loans with no related allowance recorded:
Commercial and industrial	$	4,962	$	4,899	$	—	$	4,866	$	13	$	2,843	$	2,843	$	—	$	2,811	$	36
Commercial real estate	2,494		2,331		—		2,361		20		557		416		—		413		21
Construction and land	—		—		—		—		—		—		—		—		—		—
Residential mortgages	380		334		—		340		—		—		—		—		—		—
Home equity	534		534		—		541		—		—		—		—		—		—
Mortgage warehouse	—		—		—		—		—		—		—		—		—		—
Consumer	—		—		—		—		—		—		—		—		—		—
Total	$	8,370	$	8,098	$	—	$	8,108	$	33	$	3,400	$	3,259	$	—	$	3,224	$	57
Impaired loans with an allowance recorded:
Commercial and industrial	$	9,122	$	9,122	$	3,106	$	9,160	$	138	$	78	$	78	$	390	$	78	$	—
Commercial real estate	579		579		143		582		6		1,659		1,659		261		1,659		6
Construction and land	—		—		—		—		—		—		—		—		—		—
Residential mortgages	—		—		—		—		—		—		—		—		—		—
Home equity	—		—		—		—		—		—		—		—		—		—
Mortgage warehouse	—		—		—		—		—		—		—		—		—		—
Consumer	—		—		—		—		—		—		—		—		—		—
Total	$	9,701	$	9,701	$	3,249	$	9,742	$	144	$	1,737	$	1,737	$	651	$	1,737	$	6
Total impaired loans	$	18,071	$	17,799	$	3,249	$	17,850	$	177	$	5,137	$	4,996	$	651	$	4,961	$	63

15

	For the Six Months Ended June 30,
	2017										2016
	Unpaid Principal Balance		Recorded Investment		Related Allowance		Average Balance of Recorded Investment While Impaired		Interest Income Recognized During Impairment		Unpaid Principal Balance		Recorded Investment		Related Allowance		Average Balance of Recorded Investment While Impaired		Interest Income Recognized During Impairment
	(in thousands)
Impaired loans with no related allowance recorded:
Commercial and industrial	$	4,962	$	4,899	$	—	$	5,346	$	30	$	2,843	$	2,843	$	—	$	2,774	$	72
Commercial real estate	2,494		2,331		—		2,439		20		557		416		—		413		21
Construction and land	—		—		—		—		—		—		—		—		—		—
Residential mortgages	380		334		—		366		—		—		—		—		—		—
Home equity	534		534		—		541		—		—		—		—		—		—
Mortgage warehouse	—		—		—		—		—		—		—		—		—		—
Consumer	—		—		—		—		—		—		—		—		—		—
Total	$	8,370	$	8,098	$	—	$	8,692	$	50	$	3,400	$	3,259	$	—	$	3,187	$	93
Impaired loans with an allowance recorded:
Commercial and industrial	$	9,122	$	9,122	$	3,106	$	9,200	$	246	$	78	$	78	$	390	$	78	$	—
Commercial real estate	579		579		143		585		13		1,659		1,659		261		1,659		27
Construction and land	—		—		—		—		—		—		—		—		—		—
Residential mortgages	—		—		—		—		—		—		—		—		—		—
Home equity	—		—		—		—		—		—		—		—		—		—
Mortgage warehouse	—		—		—		—		—		—		—		—		—		—
Consumer	—		—		—		—		—		—		—		—		—		—
Total	$	9,701	$	9,701	$	3,249	$	9,785	$	259	$	1,737	$	1,737	$	651	$	1,737	$	27
Total impaired loans	$	18,071	$	17,799	$	3,249	$	18,477	$	309	$	5,137	$	4,996	$	651	$	4,924	$	120

Atlantic Capital evaluates loans in accordance with ASC 310-40, Troubled Debt Restructurings by Creditors. TDRs are loans in which Atlantic Capital has modified the terms or granted an economic concession to a borrower who is experiencing financial difficulties. These modifications may include interest rate reductions, term extensions and other concessions intended to minimize losses.

As of June 30, 2017 and December 31, 2016, the Company had a recorded investment in TDRs of $6.1 million and $6.6 million, respectively. The Company had commitments to lend additional funds of $483,000 and $387,000 on loans modified as TDRs, as of June 30, 2017 and December 31, 2016, respectively. During the three and six months ended June 30, 2017, the modification of terms for one Home Equity loan included a short term extension of the maturity date. The Company did not modify any new loans as a TDR during the three and six months endedJune 30, 2016. There were no subsequent defaults on prior TDRs.

16

Atlantic Capital individually rates loans based on internal credit risk ratings using numerous factors, including thorough analysis of historical and expected cash flows, consumer credit risk scores (FICO scores), rating agency information, LTV ratios, collateral, collection experience, and other internal metrics. Atlantic Capital uses a dual rating system. The likelihood of default of a credit transaction is graded in the Obligor Rating. The risk of loss given default is graded in the Facility Rating. The Obligor Rating is determined through credit analysis. Facility Ratings are used to describe the value to the Company that the collateral represents. Facility Ratings are based on the collateral package or market expectations regarding the value or liquidity of the collateral. Ratings are generally reviewed at least annually or more frequently if there is a material change in creditworthiness. Exceptions to this policy may include well collateralized term loans and loans to individuals with limited exposure or complexity.

Atlantic Capital uses the following definitions for risk ratings:

Pass: Loans that are analyzed individually as part of the above described process and that do not meet the criteria of special mention, substandard or doubtful.

Special Mention: Loans classified as special mention have a potential weakness that requires management’s close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the loan or of the institution’s credit position at some future date.

Substandard: Loans classified as substandard are inadequately protected by the current net worth and paying capacity of the obligor or of the collateral pledged, if any. Loans so classified have a well-defined weakness or weaknesses that jeopardize the liquidation of the debt. They are characterized by the distinct possibility that the institution will sustain some loss if the deficiencies are not corrected.

Doubtful: Loans classified as doubtful have all the weaknesses inherent in those classified as substandard, with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of currently existing facts, conditions, and values, highly questionable and improbable.

17

As of June 30, 2017 and December 31, 2016, and based on the most recent analysis performed, the risk category of loans by class of loans is as follows.

	Pass		Special Mention		Substandard Accruing		Substandard Nonaccruing		Doubtful		Total
	(in thousands)
June 30, 2017
Commercial and industrial	$	529,268	$	4,882	$	32,249	$	8,235	$	—	$	574,634
Commercial real estate	964,573		7,254		4,961		2,310		—		979,098
Construction and land	119,876		4,722		—		20		—		124,618
Residential mortgages	96,824		1,407		959		631		—		99,821
Home equity	77,461		42		500		713		—		78,716
Mortgage warehouse	47,992		—		—		—		—		47,992
Consumer/Other	49,682		97		206		—		—		49,985
Total loans, excluding PCI loans	$	1,885,676	$	18,404	$	38,875	$	11,909	$	—	$	1,954,864
Commercial and industrial	$	3,200	$	272	$	782	$	—	$	—	$	4,254
Commercial real estate	3,099		250		306		—		122		3,777
Construction and land	396		7		37		—		—		440
Residential mortgages	117		902		958		—		—		1,977
Home equity	33		649		371		—		—		1,053
Mortgage warehouse	—		—		—		—		—		—
Consumer/Other	1		1		7		—		—		9
Total PCI loans	$	6,846	$	2,081	$	2,461	$	—	$	122	$	11,510

	Pass		Special Mention		Substandard Accruing		Substandard Nonaccruing		Doubtful		Total
	(in thousands)
December 31, 2016
Commercial and industrial	$	494,617	$	3,160	$	26,399	$	3	$	471	$	524,650
Commercial real estate	843,924		5,513		5,571		—		—		855,008
Construction and land	213,981		4,789		64		—		—		218,834
Residential mortgages	97,660		586		747		147		—		99,140
Home equity	75,031		168		397		—		—		75,596
Mortgage warehouse	147,519		—		—		—		—		147,519
Consumer/Other	48,680		190		22		—		—		48,892
Total loans, excluding PCI loans	$	1,921,412	$	14,406	$	33,200	$	150	$	471	$	1,969,639
Commercial and industrial	$	4,650	$	299	$	614	$	—	$	848	$	6,411
Commercial real estate	477		240		2,716		—		337		3,770
Construction and land	229		8		281		—		—		518
Residential mortgages	59		1,232		1,016		—		474		2,781
Home equity	364		834		564		—		—		1,762
Mortgage warehouse	—		—		—		—		—		—
Consumer/Other	1		—		10		—		—		11
Total PCI loans	$	5,780	$	2,613	$	5,201	$	—	$	1,659	$	15,253

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Atlantic Capital monitors loans by past due status. The following table presents the aging of the recorded investment in past due loans as of June 30, 2017 and December 31, 2016 by class of loans.

	As of June 30, 2017
	Accruing Current		Accruing 30-89 Days Past Due		Accruing 90+ Days Past Due		Nonaccruing		PCI Loans		Total
	(in thousands)
Loans by Classification
Commercial and industrial	$	565,802	$	472	$	125	$	8,235	$	4,254	$	578,888
Commercial real estate	976,640		—		148		2,310		3,777		982,875
Construction and land	124,598		—		—		20		440		125,058
Residential mortgages	98,851		261		78		631		1,977		101,798
Home equity	77,963		—		40		713		1,053		79,769
Mortgage warehouse	47,992		—		—		—		—		47,992
Consumer	49,984		1		—		—		9		49,994
Total Loans	$	1,941,830	$	734	$	391	$	11,909	$	11,510	$	1,966,374

	As of December 31, 2016
	Accruing Current		Accruing 30-89 Days Past Due		Accruing 90+ Days Past Due		Nonaccruing		PCI Loans		Total
	(in thousands)
Loans by Classification
Commercial and industrial	$	520,908	$	3,079	$	189	$	474	$	6,411	$	531,061
Commercial real estate	852,626		2,382		—		—		3,770		858,778
Construction and land	218,290		544		—		—		518		219,352
Residential mortgages	97,901		664		428		147		2,781		101,921
Home equity	74,420		884		292		—		1,762		77,358
Mortgage warehouse	147,519		—		—		—		—		147,519
Consumer	48,558		249		85		—		11		48,903
Total Loans	$	1,960,222	$	7,802	$	994	$	621	$	15,253	$	1,984,892

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NOTE 7 – GOODWILL AND INTANGIBLE ASSETS

The carrying amount of goodwill and other intangible assets as of June 30, 2017 and December 31, 2016 is summarized below:

	June 30,			December 31,
	2017			2016
	(in thousands)
Core deposit intangible	$	9,544		$	9,544
Less: accumulated amortization	(3,866		)	(2,971		)
Less: impairment related to divested branches	(2,286		)	(1,949		)
Core deposit intangible, net	3,392			4,624
Servicing assets, net	3,295			3,184
Total other intangibles, net	6,687			7,808
Goodwill	21,759			21,759
Total goodwill and other intangible assets, net	$	28,446		$	29,567

During the six months ended June 30, 2017 and 2016, Atlantic Capital recorded measurement period adjustments that decreased goodwill by $0 and $906,000, respectively. The adjustments reduced the TriNet servicing asset, increased the book value of securities available-for-sale, and increased the deferred tax asset.

There were no goodwill impairment charges recorded in the three and six months ended June 30, 2017 and 2016. The following table presents activity for goodwill and other intangible assets:

	For the Three Months Ended June 30,								For the Six Months Ended June 30,
	Goodwill		Core Deposit Intangible			Total			Goodwill			Core Deposit Intangible			Total
	(in thousands)
2017
Balance, beginning of period	$	21,759	$	4,154		$	25,913		$	21,759		$	4,624		$	26,383
Amortization	—		(425		)	(425		)	—			(895		)	(895		)
Impairment, due to branch divestiture	—		(337		)	(337		)	—			(337		)	(337		)
Balance, end of period	$	21,759	$	3,392		$	25,151		$	21,759		$	3,392		$	25,151
2016
Balance, beginning of period	$	22,446	$	8,256		$	30,702		$	23,352		$	9,018		$	32,370
Amortization	—		(668		)	(668		)	—			(1,430		)	(1,430		)
Impairment, due to branch divestiture	—		(1,949		)	(1,949		)	—			(1,949		)	(1,949		)
Measurement period adjustments	—		—			—			(906		)	—			(906		)
Balance, end of period	$	22,446	$	5,639		$	28,085		$	22,446		$	5,639		$	28,085

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NOTE 8 – SERVICING ASSETS

SBA Servicing Assets

SBA servicing assets are initially recorded at fair value. Subsequently, Atlantic Capital accounts for SBA servicing assets using the amortization method and they are included in other assets. As of June 30, 2017 and December 31, 2016, the balance of SBA loans sold and serviced by Atlantic Capital totaled $122.8 million and $107.0 million, respectively.

Changes in the balance of servicing assets for the three and six months endedJune 30, 2017 and 2016 are presented in the following table.

	Three months ended June 30,						Six months ended June 30,
SBA Loan Servicing Assets	2017			2016			2017			2016
	(in thousands)
Beginning carrying value, net	$	2,495		$	1,860		$	2,359		$	1,687
Additions	326			359			593			561
Amortization	(257		)	(102		)	(388		)	(131		)
Impairment	—			—			—			—
Ending carrying value	$	2,564		$	2,117		$	2,564		$	2,117

At June 30, 2017 and 2016, the sensitivity of the fair value of the SBA loan servicing assets to immediate changes in key economic assumptions are presented in the table below.

Sensitivity of the SBA Servicing Assets	June 30, 2017				December 31, 2016
	(dollars in thousands)
Fair value of retained servicing assets	$	2,822			$	2,474
Weighted average life	6.69 years				6.52 years
Prepayment speed:	7.76			%	7.67			%
Decline in fair value due to a 10% adverse change	$	(100	)		$	(89	)
Decline in fair value due to a 20% adverse change	$	(173	)		$	(151	)
Weighted average discount rate	12.22			%	12.27			%
Decline in fair value due to a 100 bps adverse change	$	(109	)		$	(97	)
Decline in fair value due to a 200 bps adverse change	$	(189	)		$	(168	)

The above sensitivities are hypothetical and should be used with caution. As the amounts indicate, changes in fair value based on valuation assumptions generally cannot be extrapolated because the relationship of the change in assumption to the change in fair value may not be linear. Also, the effect of a variation in a particular assumption on the fair value of the retained interest is calculated without changing any other assumption. In reality, changes in one factor may result in changes in another, which might magnify or counteract the sensitivities.

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TriNet Servicing Assets

Changes in the balance of TriNet servicing assets for the three and six months endedJune 30, 2017 and 2016 are presented in the following table.

	Three months ended June 30,						Six months ended June 30,
TriNet Servicing Assets	2017			2016			2017			2016
	(in thousands)
Beginning carrying value, net	$	778		$	1,352		$	825		$	1,175
Additions	—			179			—			406
Amortization	(47		)	(60		)	(94		)	(110		)
Impairment	—			—			—			—
Ending carrying value	$	731		$	1,471		$	731		$	1,471

At June 30, 2017, the sensitivity of the fair value of the TriNet servicing assets to immediate changes in key economic assumptions are presented in the table below.

Sensitivity of the TriNet Servicing Assets	June 30, 2017				December 31, 2016
	(dollars in thousands)
Fair value of retained servicing assets	$	788			$	840
Weighted average life	8.44 years				8.47 years
Prepayment speed:	5.00			%	5.00			%
Decline in fair value due to a 10% adverse change	$	(8	)		$	(12	)
Decline in fair value due to a 20% adverse change	$	(23	)		$	(24	)
Weighted average discount rate	8.00			%	8.00			%
Decline in fair value due to a 100 bps adverse change	$	(22	)		$	(25	)
Decline in fair value due to a 200 bps adverse change	$	(43	)		$	(49	)

The above sensitivities are hypothetical and should be used with caution. As the amounts indicate, changes in fair value based on valuation assumptions generally cannot be extrapolated because the relationship of the change in assumption to the change in fair value may not be linear. Also, the effect of a variation in a particular assumption on the fair value of the retained interest is calculated without changing any other assumption. In reality, changes in one factor may result in changes in another, which might magnify or counteract the sensitivities.

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NOTE 9 – OTHER COMPREHENSIVE INCOME (LOSS)

Other comprehensive income (loss) for Atlantic Capital consists of changes in net unrealized gains and losses on investment securities available-for-sale and derivatives.  The following tables present a summary of the changes in accumulated other comprehensive income (loss) balances for the applicable periods.

	For the Three Months Ended									For the Six Months Ended
	June 30, 2017									June 30, 2017
	Pre-Tax Amount			Income Tax (Expense) Benefit			After-Tax Amount			Pre-Tax Amount			Income Tax (Expense) Benefit			After-Tax Amount
	(in thousands)
Accumulated other comprehensive income (loss) beginning of period	$	(8,790	)	$	3,383		$	(5,407	)	$	(9,144	)	$	3,519		$	(5,625	)
Unrealized net gains (losses) on investment securities available-for-sale	5,069			(1,951		)	3,118			5,660			(2,178		)	3,482
Reclassification adjustment for net realized gains (losses) on investment securities available-for-sale	—			—			—			—			—			—
Unrealized net gains (losses) on derivatives	31			(12		)	19			(206		)	79			(127		)
Accumulated other comprehensive income (loss) end of period	$	(3,690	)	$	1,420		$	(2,270	)	$	(3,690	)	$	1,420		$	(2,270	)

	For the Three Months Ended									For the Six Months Ended
	June 30, 2016									June 30, 2016
	Pre-Tax Amount			Income Tax (Expense) Benefit			After-Tax Amount			Pre-Tax Amount			Income Tax (Expense) Benefit			After-Tax Amount
	(in thousands)
Accumulated other comprehensive income (loss) beginning of period	$	2,724		$	(1,052	)	$	1,672		$	(2,455	)	$	939		$	(1,516	)
Unrealized net gains (losses) on investment securities available-for-sale	2,703			(1,043		)	1,660			6,978			(2,683		)	4,295
Reclassification adjustment for net realized gains on investment securities available-for-sale	(11		)	4			(7		)	(44		)	17			(27		)
Unrealized net gains (losses) on derivatives	275			(106		)	169			1,212			(470		)	742
Accumulated other comprehensive income (loss) end of period	$	5,691		$	(2,197	)	$	3,494		$	5,691		$	(2,197	)	$	3,494

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NOTE 10 – EARNINGS PER COMMON SHARE

Basic earnings per share amounts are computed by dividing net income by the weighted average number of shares of common stock outstanding.

Diluted earnings per share amounts are computed by dividing net income by the weighted average number of shares of common stock outstanding and the dilutive effects of the shares awarded under the stock option plan, based on the treasury stock method using an average fair market value of the stock during the respective periods.

The following table represents the earnings per share calculations for the three and six months endedJune 30, 2017 and 2016.

	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2017		2016		2017		2016
(in thousands, except share and per share amounts)
Net income available to common shareholders	$	4,329	$	5,147	$	7,559	$	8,078
Weighted average shares outstanding
Basic (1)	25,621,910		24,644,755		25,472,132		24,565,328
Effect of dilutive securities:
Stock options and warrants	209,371		513,939		281,501		517,640
Diluted	25,831,281		25,158,694		25,753,633		25,082,968
Income per common share:
Basic	$	0.17	$	0.21	$	0.30	$	0.33
Diluted	$	0.17	$	0.20	$	0.29	$	0.32
(1) Unvested restricted shares are participating securities and included in basic share calculations.

Stock options and warrants outstanding of 550 at June 30, 2017 and 259,044 at June 30, 2016 have not been included in diluted earnings per share because to do so would have been anti-dilutive for the periods presented. These awards were considered anti-dilutive because the exercise price of the award was higher than the market value of the shares.

The Amended and Restated Articles of Incorporation of Atlantic Capital, which were approved by the Board of Directors on March 24, 2015 and by Atlantic Capital’s shareholders on May 21, 2015, authorize Atlantic Capital to issue 110,000,000 shares of capital stock, of which 10,000,000 shares are designated as preferred stock, no par value per share, and 100,000,000 shares are designated as common stock, no par value per share.

At June 30, 2017, 25,654,521 shares of common stock were issued and outstanding. At December 31, 2016, 25,093,135 shares of common stock were issued and outstanding.

The primary source of funds available to Atlantic Capital is payments of dividends from the Bank. The Bank has not paid any dividends to Atlantic Capital in 2017 or 2016. Banking laws and other regulations limit the amount of dividends a bank subsidiary may pay without prior regulatory approval. Additionally, Atlantic Capital’s ability to pay dividends to its shareholders will depend on the ability of the Bank to pay dividends to Atlantic Capital. The Bank is subject to regulatory restrictions on the payment of cash dividends, which generally may be paid only from current earnings.

NOTE 11 – DERIVATIVES AND HEDGING

Risk Management

Atlantic Capital’s objectives in using interest rate derivatives are to add stability to net interest revenue and to manage its exposure to interest rate movements. To accomplish this objective, Atlantic Capital primarily uses interest rate swaps as part of its interest rate risk management strategy.

Cash Flow Hedges

At June 30, 2017, Atlantic Capital’s interest rate swaps designated as cash flow hedges involve the payment of floating-rate amounts to a counterparty in exchange for receiving fixed-rate payments over the life of the agreements without exchange of the underlying notional amount. At June 30, 2017 and December 31, 2016, Atlantic Capital had interest rate swaps designated as cash flow hedges with an aggregate notional amount of $50.0 million.

No hedge ineffectiveness gains or losses were recognized on active cash flow hedges for the three and six months endedJune 30, 2017 and 2016. The effective portion of changes in the fair value of derivatives designated and that qualify as cash flow hedges

24

is recorded in accumulated other comprehensive income and is subsequently reclassified into earnings in the period that the hedged forecasted transaction affects earnings. Atlantic Capital expects that approximately $159,000 will be reclassified as an increase to loan interest income over the next twelve months related to these cash flow hedges.

Customer Swaps

Atlantic Capital also enters into derivative contracts, which consist of interest rate swaps, to facilitate the needs of clients desiring to manage interest rate risk. These swaps are not designated as accounting hedges under ASC 815, Derivatives and Hedging. In order to economically hedge the interest rate risk associated with offering this product, Atlantic Capital simultaneously enters into derivative contracts with third parties to offset the customer contracts, such that Atlantic Capital minimizes its net risk exposure resulting from such transactions. The derivative contracts are structured such that the notional amounts reduce over time to generally match the expected amortization of the underlying loans. These derivatives are not speculative and arise from a service provided to clients.

Atlantic Capital’s derivative instruments are recorded at fair value in other assets and accrued interest receivable and other liabilities and accrued interest payable in the Consolidated Balance Sheets. The changes in the fair value of the derivative instruments are recognized in other noninterest income in the Consolidated Statements of Income. At June 30, 2017 and December 31, 2016, Atlantic Capital had interest rate swaps related to this program with an aggregate notional amount of $141.0 million and $140.7 million, respectively.

Atlantic Capital acquired a loan level hedging program, which First Security utilized to accommodate clients preferring a fixed rate loan. The loan documents include an addendum with a zero premium collar. The zero premium collar is a cap and a floor at the same interest rate, resulting in a fixed rate to the borrower. To hedge this embedded option, First Security entered into a dealer facing trade exactly mirroring the terms in the loan addendum.

Counterparty Credit Risk

As a result of its derivative contracts, Atlantic Capital is exposed to credit risk. Specifically approved counterparties and exposure limits are defined. On a quarterly basis, the customer derivative contracts and related counterparties are evaluated for credit risk and an adjustment is made to the contract’s fair value. This adjustment is recognized in the Consolidated Statements of Income.

Most derivative contracts with clients are secured by collateral. Additionally, in accordance with the interest rate agreements with derivatives dealers, Atlantic Capital may be required to post margin to these counterparties. At June 30, 2017 and December 31, 2016, Atlantic Capital had minimum collateral posting thresholds with certain of its derivative counterparties and posted collateral of $8.3 million and $16.3 million, respectively, against its obligations under these agreements. Cash collateral related to derivative contracts is recorded in other assets in the Consolidated Balance Sheets.

Atlantic Capital has master netting agreements with the derivatives dealers with which it does business, but reflects gross assets and liabilities on the Consolidated Balance Sheets.

In conjunction with the FASB’s fair value measurement guidance, management made an accounting policy election to measure the credit risk of its derivative financial instruments that are subject to master netting arrangements on a net basis.

To accommodate clients, Atlantic Capital occasionally enters into credit risk participation agreements with counterparty banks to accept a portion of the credit risk related to interest rate swaps. This allows clients to execute an interest rate swap with one bank while allowing for distribution of the credit risk among participating members. Credit risk participation agreements arise when Atlantic Capital contracts with other financial institutions, as a guarantor, to share credit risk associated with certain interest rate swaps. These agreements provide for reimbursement of losses resulting from a third party default on the underlying swap. At June 30, 2017 and December 31, 2016, Atlantic Capital had credit risk participation agreements with a notional amount of $16.3 million and $4.5 million, respectively.

25

The following table reflects the estimated fair value positions of derivative contracts and credit risk participation agreements as of June 30, 2017 and December 31, 2016:

Derivatives designated as hedging instruments under ASC 815
(in thousands)		June 30, 2017				December 31, 2016
Interest Rate Products	Balance Sheet Location	Notional Amount		Fair Value		Notional Amount		Fair Value
Cash flow hedge of LIBOR based loans	Other assets	$	25,000	$	38	$	50,000	$	186
Cash flow hedge of LIBOR based loans	Other liabilities	$	25,000	$	1	$	—	$	—
Derivatives not designated as hedging instruments under ASC 815
(in thousands)		June 30, 2017				December 31, 2016
Interest Rate Products	Balance Sheet Location	Notional Amount		Fair Value		Notional Amount		Fair Value
Customer swap positions	Other assets	$	70,476	$	1,262	$	70,352	$	1,364
Zero premium collar	Other assets	96,396		2,850		98,697		2,760
		$	166,872	$	4,112	$	169,049	$	4,124
Dealer offsets to customer swap positions	Other liabilities	$	70,476	$	1,306	$	70,352	$	1,371
Credit risk participation	Other liabilities	16,304		6		4,460		—
Dealer offset to zero premium collar	Other liabilities	96,396		2,931		98,697		2,760
		$	183,176	$	4,243	$	173,509	$	4,131

The following table reflects the impact to the Consolidated Statements of Income related to derivative contracts for the three and six months endedJune 30, 2017 and 2016:

Derivatives in Cash Flow Hedging Relationships
	Three Months Ended June 30,									Six Months Ended June 30,
(in thousands)	Amount of Gain or (Loss) Recognized in OCI on Derivatives (Effective Portion)				Gain or (Loss) Reclassified from Accumulated OCI in Income (Effective Portion)					Amount of Gain or (Loss) Recognized in OCI on Derivatives (Effective Portion)					Gain or (Loss) Reclassified from Accumulated OCI in Income (Effective Portion)
	2017		2016		Location	2017		2016		2017			2016		Location	2017		2016
Interest rate swaps	$	19	$	169	Interest income	$	110	$	183	$	(127	)	$	742	Interest income	$	247	$	369

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NOTE 12 – OTHER BORROWINGS AND LONG TERM DEBT

Federal Home Loan Bank borrowings as of June 30, 2017 and December 31, 2016 are as follows:

	June 30, 2017					December 31, 2016
	Balance		Interest Rate			Balance		Interest Rate
	(in thousands)					(in thousands)
FHLB short-term borrowings:					FHLB short-term borrowings:
Fixed rate advance maturing July 3, 2017	25,000		1.02	%	Fixed rate advance maturing January 17, 2017	40,000		0.64	%
Fixed rate advance maturing July 20, 2017	40,000		1.16	%	Fixed rate advance maturing January 24, 2017	40,000		0.61	%
Fixed rate advance maturing July 24, 2017	35,000		1.16	%	Fixed rate advance maturing January 30, 2017	30,000		0.62	%
Fixed rate advance maturing July 24, 2017	40,000		1.17	%	Total	$	110,000
Fixed rate advance maturing July 27, 2017	40,000		1.17	%
Total	$	180,000
Federal Funds purchased and securities sold under agreements to repurchase					Federal Funds purchased and securities sold under agreements to repurchase
Federal Funds purchased	15,000		1.28%- 1.31%		Federal Funds purchased	—		—	%
Total Short-Term Borrowings	$	195,000			Total Short-Term Borrowings	$	110,000

On September 28, 2015, Atlantic Capital issued subordinated notes (the “Notes”) totaling $50.0 million in aggregate principal amount. The Notes are due September 30, 2025 and bear a fixed rate of interest of 6.25% per year until September 29, 2020. From September 30, 2020 to the maturity date, the interest rate will be a floating rate equal to the three-month LIBOR plus 468 basis points. The Notes were priced at 100% of their par value. The Notes qualify as Tier 2 regulatory capital.

Subordinated debt is summarized as follows.

	June 30, 2017		December 31, 2016
	(in thousands
Floating rate 10 year capital securities, with interest paid semi-annually at an annual fixed rate of 6.25% until September 30, 2020	$	50,000	$	50,000
Principal amount of subordinated debt	$	50,000	$	50,000
Less debt issuance costs		549		634
Subordinated debt, net	$	49,451	$	49,366

All subordinated debt outstanding at June 30, 2017 matures after more than five years.

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NOTE 13 – SHARE-BASED COMPENSATION

Atlantic Capital sponsors a stock incentive plan for the benefit of directors and employees. Under the 2015 Stock Incentive Plan, there were approximately 4,525,000 shares reserved for issuance to directors and employees. The Compensation Committee has the authority to grant the following: an incentive or nonqualified option; a restricted stock award (including a restricted stock award or a restricted unit award); a performance award (including a performance share award or a performance unit award); a phantom stock award; a dividend equivalent award; or any other award granted under the plan.

As of June 30, 2017, approximately 3,862,000 additional awards were available to be granted under the plan. Stock options are granted at a price which is no less than the fair market value of a share of Atlantic Capital common stock on the grant date. Stock options generally vest over three years and expire after ten years.

As of June 30, 2017, no warrants were outstanding for the purchase of common stock. As of December 31, 2016, warrants for 363,000 shares were outstanding for the purchase of common stock at a price of $10.00 per warrant. The warrants were issued as of May 14, 2007, the date of issuance of common stock sold in the initial private placement, and were exercisable for a period of ten years following the issuance.

The Company estimates the fair value of its options and warrants awards using the Black-Scholes option pricing model. The risk-free rate for periods within the contractual life of the option and warrant is based on the U.S. Treasury yield curve in effect at the time of grant. There were no options or warrants granted during the six months endedJune 30, 2017 and 2016.

The following table represents stock option and warrant activity for the six months endedJune 30, 2017:

	Shares		Weighted Average Exercise Price		Weighted Average Remaining Contractual Term (in years)	Aggregate Intrinsic Value
Outstanding, December 31, 2016	1,485,704		$	11.69
Exercised	(694,984	)	10.48
Forfeited	(628	)	10.31
Expired	(635	)	126.22
Outstanding, June 30, 2017	789,457		$	12.61	6.02	$	5,274
Exercisable, June 30, 2017	513,515		$	11.72	4.99	$	3,926

Atlantic Capital recognized compensation expense relating to stock options of $139,000 and $281,000 for the three and six months endedJune 30, 2017, respectively, and $203,000 and $445,000 for the three and six months endedJune 30, 2016, respectively. Using the Black-Scholes pricing model, the amount of compensation expense was determined based on the fair value of the options at the time of grant, multiplied by the number of options granted that were expected to vest, which was then amortized over the vesting period.

The following table represents restricted stock activity for the six months endedJune 30, 2017:

	Shares		Weighted Average Grant-Date Fair Value
Outstanding, December 31, 2016	259,165		$	13.70
Granted	61,715		18.72
Vested	(58,309	)	12.25
Forfeited	(26,875	)	14.57
Outstanding, June 30, 2017	235,696		$	15.27

Compensation expense for restricted stock is based on the fair value of restricted stock awards at the time of grant, which is equal to the value of Atlantic Capital’s common stock on the date of grant. The value of restricted stock grants that are expected to vest is amortized into expense over the vesting period. For the three months ended June 30, 2017 and 2016, compensation expense of $243,000 and $205,000, respectively, was recognized related to restricted stock awards. For the six months ended June 30, 2017 and 2016, compensation expense of $473,000 and $455,000, respectively, was recognized related to restricted stock awards.

As of June 30, 2017, there was $2.7 million of unrecognized compensation cost related to restricted stock awards granted under the plan. That cost is expected to be recognized over a weighted-average period of 2.84 years.

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NOTE 14 – FAIR VALUE MEASUREMENTS

Atlantic Capital follows the guidance pursuant to ASC 820-10, Fair Value Measurements and Disclosures. This guidance defines fair value, establishes a framework for measuring fair value and expands disclosures about fair value measurements. This issuance applies to reported balances that are required or permitted to be measured at fair value under existing accounting pronouncements; accordingly, the standard does not require any new fair value measurements of reported balances. Atlantic Capital measures its investment securities and interest rate derivative assets and liabilities at fair value on a recurring basis. Fair value is used on a nonrecurring basis either when assets are evaluated for impairment or for disclosure purposes. Atlantic Capital measures its servicing assets, goodwill, intangible assets, loans held for sale, impaired loans and other real estate owned at fair value on a nonrecurring basis if necessary.

The guidance emphasizes that fair value is a market-based measurement, not an entity-specific measurement and defines fair value as the price that could be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. As a basis for considering market participant assumptions in fair value measurements, this guidance establishes a fair value hierarchy that distinguishes between market participant assumptions based on market data obtained from sources independent of the reporting entity (observable inputs that are classified within Levels 1 and 2 of the hierarchy) and the reporting entity’s own assumptions about market participant assumptions (unobservable inputs classified within Level 3 of the hierarchy).

Atlantic Capital applied the following fair value hierarchy:

Level 1 – Assets or liabilities for which the identical item is traded on an active exchange, such as publicly-traded instruments or futures contracts.

Level 2 – Assets or liabilities valued based on observable market data for similar instruments.

Level 3 – Assets or liabilities for which significant valuation assumptions are not readily observable in the market, instruments valued based on the best available data, some of which is internally-developed, and risk premiums that a market participant would require.

In instances where the determination of the fair value measurement is based on inputs from different levels of the fair value hierarchy, the level in which the entire fair value measurement falls is based on the lowest level input that is significant to the fair value measurement. There were no transfers between Level 1 and Level 2 or Level 2 and Level 3 during the six months ended June 30, 2017. There was one transfer between Level 2 and Level 3 and no transfers between Level 1 and Level 2 during the six months ended June 30, 2016.

Atlantic Capital records investment securities available-for-sale at fair value on a recurring basis. Investment securities classified as available-for-sale are reported at fair value utilizing Level 2 inputs. For these securities, Atlantic Capital obtains fair value measurements from an independent pricing service. In estimating the fair values for investment securities, Atlantic Capital believes that independent third-party market prices are the best evidence of an exit price. The fair value measurements consider observable data that may include dealer quotes, market spreads, cash flows, the Treasury Department yield curve, trade execution data, market consensus prepayment speeds, credit information and the securities’ terms and conditions, among other things.

Derivative instruments are primarily transacted as over-the-counter trades and priced with observable market assumptions. Ongoing measurements include observable market assumptions with appropriate valuation adjustments for liquidity and for credit risk of counterparties and Atlantic Capital’s own credit. For these instruments, Atlantic Capital obtains fair value measurements from an independent pricing service. The fair value measurements consider factors such as the likelihood of default by Atlantic Capital and its counterparties, total exposure and remaining maturities in determining the appropriate fair value adjustments to record. Generally, the expected loss of each client counterparty is estimated using Atlantic Capital’s internal risk rating system. For financial institution counterparties that are rated by national rating agencies, those ratings are used in determining the credit risk. This approach used to estimate exposures to counterparties is also used by Atlantic Capital to estimate its own credit risk on derivative liability positions.

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Assets and Liabilities Measured at Fair Value on a Recurring Basis

The following table presents the assets that were measured at fair value on a recurring basis by level within the fair value hierarchy as reported in the Consolidated Balance Sheets at June 30, 2017 and December 31, 2016.

	Fair Value Measurements at
	June 30, 2017 Using:
	Quoted Prices in Active Markets for Identical Securities (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total
	(in thousands)
Securities available-for-sale—
U.S. government agencies	$	—	$	35,125	$	—	$	35,125
U.S. states and political subdivisions	—		94,168		—		94,168
Trust preferred securities	—		4,688		—		4,688
Corporate debt securities	—		19,220		—		19,220
Mortgage-backed securities	—		297,072		—		297,072
Total securities available-for-sale	$	—	$	450,273	$	—	$	450,273
Interest rate derivative assets	$	—	$	4,150	$	—	$	4,150
Interest rate derivative liabilities	$	—	$	4,244	$	—	$	4,244

	Fair Value Measurements at
	December 31, 2016 Using:
	Quoted Prices in Active Markets for Identical Securities (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total
	(in thousands)
Securities available-for-sale—
U.S. government agencies	$	—	$	21,152	$	—	$	21,152
U.S. states and political subdivisions	—		90,172		—		90,172
Trust preferred securities	—		4,525		—		4,525
Corporate debt securities	—		19,231		—		19,231
Mortgage-backed securities	—		212,625		—		212,625
Total securities available-for-sale	$	—	$	347,705	$	—	$	347,705
Interest rate derivative assets	$	—	$	4,310	$	—	$	4,310
Interest rate derivative liabilities	$	—	$	4,131	$	—	$	4,131

For the six months endedJune 30, 2017 and 2016, there was not a change in the methods and significant assumptions used to estimate fair value.

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Assets and Liabilities Measured at Fair Value on a Non-Recurring Basis

The following table presents the assets that were measured at fair value on a nonrecurring basis by level within the fair value hierarchy as reported in the Consolidated Balance Sheets at June 30, 2017 and December 31, 2016.

June 30, 2017		Level 1 Fair Value Measurement		Level 2 Fair Value Measurement		Level 3 Fair Value Measurement		Total
	(in thousands)
Impaired Loans		$	—	$	—	$	7,655	$	7,655

December 31, 2016		Level 1 Fair Value Measurement		Level 2 Fair Value Measurement		Level 3 Fair Value Measurement		Total
	(in thousands)
Impaired Loans		$	—	$	—	$	7,248	$	7,248

Level 3 loans consist of impaired loans which have been partially charged-off or have specific valuation allowances. The fair value of Level 3 assets is estimated based on the underlying collateral value. For loans which the cash proceeds from the sale of the underlying collateral is the expected source of repayment, the fair value of these loans was derived from internal estimates of the underlying collateral incorporating market data, including third party appraisals or evaluations, when available. Appraised values may be discounted based on management’s assessment of the level of inactivity in the real estate market and other markets for the underlying collateral, changes in market conditions from the time of the valuation, and other information that in management’s judgment may affect the value. Impaired loans are evaluated on at least a quarterly basis and adjusted accordingly.

Assets and Liabilities Not Measured at Fair Value

For financial instruments that have quoted market prices, those quotes are used to determine fair value. Financial instruments that have no defined maturity, have a remaining maturity of 180 days or less, or reprice frequently to a market rate, are assumed to have a fair value that approximates the reported book value, after taking into consideration any applicable credit risk. If no market quotes are available, financial instruments are valued by discounting the expected cash flows using an estimated current market interest rate for the financial instrument. For off-balance sheet derivative instruments, fair value is estimated as the amount that Atlantic Capital would receive or pay to terminate the contracts at the reporting date, taking into account the current unrealized gains or losses on open contracts.

The short maturity of Atlantic Capital’s assets and liabilities results in having a significant number of financial instruments whose fair value equals or closely approximates carrying value. Such financial instruments are reported in the following balance sheet captions: cash and due from banks, interest-bearing deposits in other banks, other short-term investments, and FHLB stock. The fair value of securities available-for-sale equals the balance sheet value. Due to the short-term settlement of accrued interest receivable and payable, the carrying amount closely approximates fair value.

Fair value estimates are made at a specific point in time, based on relevant market information and information about the financial instrument. These estimates do not reflect the premium or discount on any particular financial instrument that could result from the sale of Atlantic Capital’s entire holdings. Because no ready market exists for a significant portion of Atlantic Capital’s financial instruments, fair value estimates are based on many judgments. These estimates are subjective in nature and involve uncertainties and matters of significant judgment and therefore cannot be determined with precision. Changes in assumptions could significantly affect the estimates.

Off-balance sheet financial instruments (commitments to extend credit and standby letters of credit) are generally short-term and at variable rates. Therefore, both the carrying amount and the estimated fair value associated with these instruments are immaterial.

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The following table presents the estimated fair values of Atlantic Capital’s financial instruments at June 30, 2017 and December 31, 2016.

	Fair Value Measurements at
	June 30, 2017 Using:
	Carrying Value		Quoted Prices in Active markets for Identical Securities (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
	(in thousands)
Financial assets
Cash and due from banks	$	45,008	$	45,008	$	—	$	—
Interest bearing deposits in banks	36,171		36,171		—		—
Other short-term investments	17,459		17,459		—		—
Total securities available-for-sale	450,273		—		450,273		—
FHLB stock	10,126		—		—		10,126
Federal Reserve Bank stock	9,781		—		—		9,781
Loans held for investment, net	1,940,221		—		—		1,999,159
Loans held for sale	1,744		—		1,744		—
Derivative assets	4,150		—		4,150		—
Financial liabilities
Deposits	$	2,113,954	$	—	$	2,006,800	$	—
Federal funds purchased and securities sold under agreements to repurchase	15,000		15,000		—		—
Subordinated debt	49,451		—		50,007		—
FHLB advances	180,000		—		180,012		—
Derivative financial instruments	4,244		—		4,244		—

	Fair Value Measurements at
	December 31, 2016 Using:
	Carrying Value		Quoted Prices in Active markets for Identical Securities (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
	(in thousands)
Financial assets
Cash and due from banks	$	36,790	$	36,790	$	—	$	—
Interest-bearing deposits in other banks	118,039		118,039		—		—
Other short-term investments	10,896		10,896		—		—
Total securities available-for-sale	347,705		—		347,705		—
FHLB stock	7,067		—		—		7,067
Federal Reserve Bank stock	9,690		—		—		9,690
Loans held for investment, net	1,960,735		—		—		1,939,895
Loans held for sale	35,219		—		35,219		—
Derivative assets	4,310		—		4,310		—
Financial liabilities
Deposits	$	2,205,991	$	—	$	2,144,196	$	—
Deposits to be assumed in branch sale	31,589		—		31,589		—
Subordinated debt	49,366		—		48,971		—
FHLB advances	110,000		—		109,946		—
Derivative financial instruments	4,131		—		4,131		—

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NOTE 15 – COMMITMENTS AND CONTINGENCIES

Atlantic Capital is a party to financial instruments with off-balance sheet risk in the normal course of business to meet the financing needs of its customers. These financial instruments include commitments to extend credit and letters of credit, most of which are standby letters of credit. These instruments involve, to varying degrees, elements of credit risk in excess of the amounts recognized in the Consolidated Balance Sheets. The contract amounts of these instruments reflect the extent of involvement Atlantic Capital has in particular classes of financial instruments.

Standby letters of credit are written conditional commitments issued by Atlantic Capital to guarantee the performance of a customer to a third party. Those guarantees are primarily issued to support public and private borrowing arrangements. Most letters of credit expire in less than one year. The credit risk involved in issuing letters of credit is essentially the same as that involved in extending loan facilities to customers.

Atlantic Capital’s exposure to credit loss in the event of nonperformance by the other party to the financial instrument for commitments to extend credit and standby letters of credit is represented by the contractual amount of those instruments. Atlantic Capital uses the same credit policies in making commitments and conditional obligations as it does for on-balance sheet instruments.

Atlantic Capital’s maximum exposure to credit risk for unfunded loan commitments and standby letters of credit at June 30, 2017 and December 31, 2016 was as follows:

	June 30, 2017		December 31, 2016
	(in thousands)
Financial Instruments whose contract amount represents credit risk:
Commitments to extend credit	$	631,250	$	617,432
Standby letters of credit	15,925		16,625
	$	647,175	$	634,057

Atlantic Capital, in the normal course of business, is subject to various pending and threatened lawsuits in which claims for monetary damages are asserted. Although it is not possible to predict the outcome of these lawsuits, or the range of any possible loss, management, after consultation with legal counsel, does not anticipate that the ultimate aggregate liability, if any, arising from these lawsuits will have a material adverse effect on Atlantic Capital’s financial position or results of operations.

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ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS

This Quarterly Report on Form 10-Q of Atlantic Capital Bancshares, Inc. (the “Company” or “Atlantic Capital”) contains forward-looking statements within the meaning of section 27A of the Securities Act of 1933, as amended, and 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”). These forward-looking statements reflect our current views with respect to, among other things, future events and our financial performance. These statements are often, but not always, made through the use of words or phrases such as “may,” “should,” “could,” “predict,” “potential,” “believe,” “will likely result,” “expect,” “continue,” “will,” “anticipate,” “seek,” “estimate,” “intend,” “plan,” “projection,” “would,” and “outlook,” or the negative version of those words or other comparable words or phrases of a future or forward-looking nature. These forward-looking statements are not historical facts, and are based on current expectations, estimates, and projections about our industry, management’s beliefs, and certain assumptions made by management, many of which, by their nature, are inherently uncertain and beyond our control. Accordingly, we caution you that any such forward-looking statements are not guarantees of future performance and are subject to risks, assumptions, and uncertainties that are difficult to predict. Although we believe that the expectations reflected in these forward-looking statements are reasonable as of the date made, actual results may prove to be materially different from the results expressed or implied by the forward-looking statements.

The following risks, among others, could cause actual results to differ materially from the anticipated results or other expectations expressed in the forward-looking statements:

• the expected growth opportunities and cost savings from the acquisition of First Security Group, Inc. (“First Security”) may not be fully realized or may take longer to realize than expected;

• loss of income from our TriNet division following our exit of this business;

• changes in asset quality and credit risk;

• the cost and availability of capital;

• customer acceptance of our products and services;

• customer borrowing, repayment, investment and deposit practices;

• the introduction, withdrawal, success and timing of business initiatives;

• the impact, extent, and timing of technological changes;

• severe catastrophic events in our geographic area;

• a weakening of the economies in which we conduct operations may adversely affect our operating results;

• the potential impact of any legal, regulatory and policy changes affecting financial institutions and the economies in which we conduct operations as a result of the new presidential administration;

• the U.S. legal and regulatory framework, including those associated with the Dodd-Frank Wall Street Reform and Consumer Protection Act (the “Dodd-Frank Act”), could adversely affect the operating results of the company;

• the interest rate environment may compress margins and adversely affect net interest income;

• changes in trade, monetary, and fiscal policies of various governmental bodies and central banks could affect the economic environment in which we operate;

• our ability to determine accurate values of certain assets and liabilities;

• adverse developments in securities, public debt, and capital markets, including changes in market liquidity and volatility;

• our ability to anticipate interest rate changes correctly and manage interest rate risk presented through unanticipated changes in our interest rate risk position and/or short- and long-term interest rates;

• unanticipated changes in our liquidity position, including but not limited to our ability to enter the financial markets to manage and respond to any changes to our liquidity position;

• adequacy of our risk management program;

• increased costs associated with operating as a public company;

• increased competitive pressure due to consolidation in the financial services industry; or

34

• other risks and factors identified in our Annual Report on Form 10-K as filed with the Securities and Exchange Commission on March 14, 2017 (the “Annual Report”) in Part I, Item 1A under the heading “Risk Factors.”

CRITICAL ACCOUNTING POLICIES

The accounting and reporting policies of Atlantic Capital are in accordance with GAAP and conform to general practices within the banking industry. Atlantic Capital’s financial position and results of operations are affected by management’s application of accounting policies, including judgments made to arrive at the carrying value of assets and liabilities and amounts reported for revenues, expenses and related disclosures. Different assumptions in the application of these policies could result in material changes in Atlantic Capital’s consolidated financial position and/or consolidated results of operations. The more critical accounting and reporting policies include Atlantic Capital’s accounting for the allowance for loan losses, fair value measurements, and income tax related items. Significant accounting policies are discussed in the Notes to Consolidated Financial Statements within Atlantic Capital’s Annual Report on Form 10-K.

Non-GAAP Financial Measures.

This Form 10-Q contains 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) net interest income after provision for loan losses-taxable equivalent; (v) income before income taxes-taxable equivalent; and (vi) income tax expense-taxable equivalent. Management uses these non-GAAP financial measures because it believes they provide a greater understanding of ongoing performance and operations, enhance comparability with prior periods, and provide users of our financial information with a meaningful measure for assessing our financial results and credit trends. Non-GAAP financial measures have limitations as analytical tools, and investors should not consider them in isolation or as an alternative to any measure of performance or financial condition as determined in accordance with GAAP. In addition, non-GAAP financial measures may not be comparable to similarly titled non-GAAP financial measures presented by other companies. 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. A reconciliation of these non-GAAP financial measures to GAAP financial measures is included in Table 1.

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EXECUTIVE OVERVIEW AND EARNINGS SUMMARY

Atlantic Capital reported net income of $4.3 million for the second quarter of 2017. This compared to net income of $5.1 million for the second quarter of 2016. Diluted income per common share was $.17 for the second quarter of 2017 compared to diluted income per common share of $.20 for the second quarter of 2016.

For the six months ended June 30, 2017, Atlantic Capital reported net income of $7.6 million. This compared to net income $8.1 million for the first six months ended June 30, 2016. Diluted income per common share was $.29 for the six months ended June 30, 2017 compared to $.32 for the same period in 2016.

The decrease in net income for the three months ended June 30, 2017, compared to the same period in 2016, was primarily the result of a $3.9 million gain on the sale of seven branches in the second quarter of 2016 and a $1.2 million, or 155%, higher loan loss provision in the second quarter of 2017. These decreases in net income were offset by a $1.3 million, or 7%, increase in net interest income before provision for loan losses and a $1.3 million, or 7%, reduction in noninterest expense.

For the six months ended June 30, 2017 compared to the first six months of 2016, the decrease in net income was primarily attributable to a $4.2 million, or 31%, decrease in noninterest income and a $1.5 million, or 128%, increase in loan loss provision. The decrease in noninterest income compared to 2016 was primarily due to the $3.9 million gain on sale of branches and a $1.1 million, or 97%, decrease in TriNet lending activities. This was offset by a $1.7 million, or 4%, increase in net interest income before provision for loan losses and a $1.8 million, or 5%, reduction in noninterest expense.

Taxable equivalent net interest income was $20.7 million for the second quarter of 2017, compared to $19.3 million for the second quarter of 2016. Taxable equivalent net interest margin increased to 3.26% for the three months ended June 30, 2017 from 3.12% for the three months ended June 30, 2016. For the six months ended June 30, 2017, taxable equivalent net interest income was $40.2 million compared to $38.2 million for the same period of 2016. Taxable equivalent net interest margin increased to 3.23% for the six months ended June 30, 2017 from 3.18% for the six months ended June 30, 2016. The margin increase for the three and six months ended June 30, 2017 compared to the prior year was due to increased investment in non-taxable investment securities and increases in the Fed Funds rate in December 2016 and March 2017.

Provision for loan losses for the quarter ended June 30, 2017 totaled $2.0 million, an increase of $1.2 million from the quarter ended June 30, 2016. The higher provision for the three months ended June 30, 2017 was primarily related to the downgrade of a $7.7 million loan relationship to nonperforming and an additional $1.0 million specific reserve related to this downgrade. The specific reserve for this loan relationship totaled $2.8 million as of June 30, 2017. For the six months ended June 30, 2017, Atlantic Capital’s provision for loan losses was $2.6 million compared to a provision of $1.1 million for the first six months of 2016. The increase was primarily due to the same factors resulting in the quarterly increase, as well as a change in the loan portfolio mix.

Noninterest income decreased $3.6 million, or 40%, to $5.3 million from the second quarter of 2016. The decrease was primarily due to a $3.9 million gain on the sale of seven branches in the second quarter of 2016. For the first six months of 2017, noninterest income decreased $4.2 million, or 31%, to $9.1 million. The decrease was primarily due to the same factors resulting in the quarterly decrease as well as a $1.1 million decrease in gains on the sale of TriNet loans.

For the second quarter of 2017, noninterest expense decreased $1.3 million, or 7%, compared to the second quarter of 2016. Noninterest expense totaled $35.4 million for the six months ended June 30, 2017, compared to $37.2 million for the same period in 2016. The most significant component of the decrease for the quarterly and six month periods was a $906,000, or 75%, and $1.7 million, or 84%, respectively, reduction in merger and conversion costs due to the substantial completion of the integration of FSGBank, N.A. (“FSGBank”) into Atlantic Capital Bank in 2016.

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Table 1 - Quarterly Selected Financial Data
(in thousands, except share and per share data; taxable equivalent)
	2017						2016									For the six months ended June 30,
	Second Quarter			First Quarter			Fourth Quarter			Third Quarter			Second Quarter			2017			2016
INCOME SUMMARY
Interest income	$	24,545		$	22,716		$	22,530		$	22,428		$	22,190		$	47,261		$	43,743
Interest expense	3,833			3,208			3,029			2,941			2,907			7,041			5,539
Net interest income	20,712			19,508			19,501			19,487			19,283			40,220			38,204
Provision for loan losses	1,980			634			2,208			463			777			2,614			1,145
Net interest income after provision for loan losses	18,732			18,874			17,293			19,024			18,506			37,606			37,059
Noninterest income	5,287			3,857			4,430			4,002			8,880			9,144			13,300
Noninterest expense	17,623			17,744			18,775			17,296			18,943			35,367			37,209
Income before income taxes	6,396			4,987			2,948			5,730			8,443			11,383			13,150
Income tax expense	2,067			1,757			1,339			2,022			3,296			3,824			5,072
Net income	$	4,329		$	3,230		$	1,609		$	3,708		$	5,147		$	7,559		$	8,078
PER SHARE DATA
Basic earnings per share	$	0.17		$	0.13		$	0.06		$	0.15		$	0.21		$	0.30		$	0.33
Diluted earnings per share	0.17			0.13			0.06			0.15			0.20			0.29			0.32
PERFORMANCE MEASURES
Return on average equity	5.48		%	4.19		%	2.09		%	4.84		%	6.88		%	4.88		%	5.47		%
Return on average assets	0.63			0.48			0.24			0.55			0.76			0.56			0.61
Taxable equivalent net interest margin	3.26			3.20			3.11			3.12			3.12			3.23			3.18
Efficiency ratio	68.37			76.78			79.19			74.05			67.44			72.35			73.58
Equity to assets	11.82			11.10			11.13			11.17			10.83			11.82			10.83
ASSET QUALITY
Allowance for loan losses to loans	1.11		%	1.05		%	1.04		%	0.92		%	0.95		%	1.11		%	0.95		%
Net charge-offs	$	49		$	1,290		$	147		$	306		$	8		$	1,339		$	1,673
Net charge-offs to average loans(1)	0.01		%	0.26		%	0.03		%	0.06		%	—		%	0.14		%	0.17		%
NPAs to total assets	0.52			0.21			0.13			0.09			0.07			0.52			0.07
AVERAGE BALANCES
Total loans	$	1,962,374		$	1,949,385		$	2,036,995		$	2,003,180		$	2,000,685		$	1,955,915		$	1,941,217
Investment securities	455,090			419,335			349,762			335,880			358,439			437,311			358,084
Total assets	2,762,389			2,694,715			2,722,444			2,717,996			2,718,110			2,728,739			2,669,430
Deposits	2,158,675			2,111,992			2,094,885			2,163,569			2,135,292			2,135,462			2,145,488
Shareholders’ equity	316,825			308,261			308,588			306,642			299,170			312,567			295,488
Number of common shares - basic	25,621,910			25,320,690			25,027,304			24,891,822			24,644,755			25,472,132			24,565,328
Number of common shares - diluted	25,831,281			25,672,286			25,407,728			25,260,280			25,158,694			25,753,633			25,082,968
(1) Annualized.

37

Table 1 - Quarterly Selected Financial Data (continued)
(in thousands, except share and per share data)
	2017						2016									For the six months ended June 30,
	Second Quarter			First Quarter			Fourth Quarter			Third Quarter			Second Quarter			2017			2016
AT PERIOD END
Total loans	$	1,963,835		$	1,930,965		$	2,016,549		$	2,054,702		$	1,971,198		$	1,963,835		$	1,971,198
Investment securities	450,273			456,942			347,705			348,484			328,370			450,273			328,370
Total assets	2,702,575			2,802,078			2,727,543			2,761,244			2,807,822			2,702,575			2,807,822
Deposits	2,113,954			2,203,039			2,237,580			2,188,856			2,158,305			2,113,954			2,158,305
Shareholders’ equity	319,435			310,967			303,658			308,463			304,066			319,435			304,066
Number of common shares outstanding	25,654,521			25,535,013			25,093,135			24,950,099			24,750,163			25,654,521			24,750,163
Non-GAAP Performance Measures Reconciliation
(in thousands)
	2017						2016									For the six months ended June 30,
	Second Quarter			First Quarter			Fourth Quarter			Third Quarter			Second Quarter			2017			2016
Interest income reconciliation
Interest income - GAAP	$	24,322		$	22,461		$	22,307		$	22,295		$	22,116		$	46,783		$	43,615
Taxable equivalent adjustment	223			255			223			133			74			478			128
Interest income - taxable equivalent	$	24,545		$	22,716		$	22,530		$	22,428		$	22,190		$	47,261		$	43,743
Net interest income reconciliation
Net interest income - GAAP	$	20,489		$	19,253		$	19,278		$	19,354		$	19,209		$	39,742		$	38,076
Taxable equivalent adjustment	223			255			223			133			74			478			128
Net interest income - taxable equivalent	$	20,712		$	19,508		$	19,501		$	19,487		$	19,283		$	40,220		$	38,204
Net interest income after provision for loan losses reconciliation
Net interest income after provision for loan losses - GAAP	$	18,509		$	18,619		$	17,070		$	18,891		$	18,432		$	37,128		$	36,931
Taxable equivalent adjustment	223			255			223			133			74			478			128
Net interest income after provision for loan losses - taxable equivalent	$	18,732		$	18,874		$	17,293		$	19,024		$	18,506		$	37,606		$	37,059
Income before income taxes reconciliation
Income (loss) before income taxes - GAAP	$	6,173		$	4,732		$	2,725		$	5,597		$	8,369		$	10,905		$	13,022
Taxable equivalent adjustment	223			255			223			133			74			478			128
Income before income taxes - taxable equivalent	$	6,396		$	4,987		$	2,948		$	5,730		$	8,443		$	11,383		$	13,150
Income tax expense reconciliation
Income tax expense - GAAP	$	1,844		$	1,502		$	1,116		$	1,889		$	3,222		$	3,346		$	4,944
Taxable equivalent adjustment	223			255			223			133			74			478			128
Income tax expense - taxable equivalent	$	2,067		$	1,757		$	1,339		$	2,022		$	3,296		$	3,824		$	5,072
Net interest margin reconciliation
Net interest margin - GAAP	3.23		%	3.16		%	3.07		%	3.10		%	3.11		%	3.19		%	3.17		%
Impact of taxable equivalent adjustment	0.03			0.04			0.04			0.02			0.01			0.04			0.01
Net interest margin - taxable equivalent	3.26		%	3.20		%	3.11		%	3.12		%	3.12		%	3.23		%	3.18		%

38

RESULTS OF OPERATIONS

Net Interest Income and Net Interest Margin

Taxable equivalent net interest income for the second quarter of 2017 totaled $20.7 million, a $1.4 million, or 7%, increase compared to the second quarter of 2016. This increase was primarily driven by a $2.4 million, or 11%, increase in taxable equivalent interest income. The change in taxable equivalent net interest income primarily resulted from the following:

• a $1.2 million, or 84%, increase to $2.6 million in taxable equivalent interest income on investment securities, resulting from a $96.7 million, or 27%, increase in average balance, due primarily to the increased investment in non-taxable investment securities; and

• a $1.1 million, or 5%, increase in interest income on loans, resulting from increases in the Fed Funds rate in December 2016 and March 2017.

Interest expense for the three months ended June 30, 2017 totaled $3.8 million, a $926,000, or 32%, increase from the same period of 2016. The rate paid on interest bearing liabilities increased 23 basis points from the second quarter of 2016 to the second quarter of 2017, driven by an increase in interest rates on deposits and other borrowings. Average interest-bearing deposits were lower mainly due to the branch sale in the second quarter of 2017 and a reduction in brokered deposits. In addition, premium amortization of acquired time deposits reduced interest expense during the second quarter of 2017 in the amount of $86,000, compared to $234,000 in the second quarter of 2016.

Taxable equivalent net interest income for the six months ended June 30, 2017 totaled $40.2 million, a $2.0 million, or 5%, increase compared to the same period in 2016. This increase was primarily driven by a $3.5 million, or 8%, increase in taxable equivalent interest income. The interest income increase primarily resulted from the following:

• a $1.8 million, or 59%, increase to $4.9 million in tax equivalent interest income on investment securities, resulting from a $79.2 million, or 22%, increase in average balance, due primarily to the increased investment in non-taxable investment securities; and

• a $1.4 million, or 4%, increase in interest income on loans, resulting from increases in the Fed Funds rate in December 2016 and March 2017.

Interest expense for the six months ended June 30, 2017 totaled $7.0 million, a $1.5 million, or 27%, increase from the same period of 2016, primarily due to a $1.0 million, or 29%, increase in interest paid on deposits. The rate paid on interest bearing liabilities increased 18 basis points from the first six months of 2016 to the same period of 2017, driven by an increase in interest rates on deposits and other borrowings. In addition, premium amortization of acquired time deposits reduced interest expense during the first six months of 2017 in the amount of $205,000, as compared to $542,000 in the same period of 2016.

Taxable equivalent net interest margin increased to 3.26% from 3.12% for the three months ended June 30, 2017 compared to the three months ended June 30, 2016. Taxable equivalent net interest margin for the six months ended June 30, 2017 increased to 3.23% compared to 3.18% for the six months ended June 30, 2016. The primary reasons for the increase in taxable equivalent net interest margin for the three and six month periods were the higher level of investment in non-taxable investment securities and higher interest rates on loans resulting from the Fed Funds rate increases in December 2016 and March 2017.

The following table presents information regarding average balances for assets and liabilities, the total dollar amounts of interest income and dividends from average interest-earning assets, the total dollar amounts of interest expense on average interest-bearing liabilities, and the resulting average yields and costs. The yields and costs for the periods indicated are derived by dividing the income or expense by the average balances for assets or liabilities, respectively, for the periods presented. Loan fees are included in interest income on loans.

39

Table 2 - Average Balance Sheets and Net Interest Analysis
(dollars in thousands; taxable equivalent)
	Three months ended June 30,
	2017						2016
	Average Balance		Interest Income/Expense		Tax Equivalent Yield/Rate		Average Balance		Interest Income/Expense		Tax Equivalent Yield/Rate
Assets
Interest bearing deposits in other banks	$	85,935	$	233	1.09	%	$	84,734	$	131	0.62	%
Other short-term investments	23,683		117		1.98	%	27,777		100		1.45	%
Investment securities:
Taxable investment securities	373,170		1,862		2.00	%	329,237		1,183		1.45	%
Non-taxable investment securities(1)	81,920		716		3.51	%	29,202		218		3.00	%
Total investment securities	455,090		2,578		2.27	%	358,439		1,401		1.57	%
Total loans	1,962,374		21,361		4.37	%	2,000,685		20,281		4.08	%
FHLB and FRB stock	19,352		256		5.31	%	14,642		277		7.61	%
Total interest-earning assets	2,546,434		24,545		3.87	%	2,486,277		22,190		3.59	%
Non-earning assets	215,955						231,833
Total assets	$	2,762,389					$	2,718,110
Liabilities
Interest bearing deposits:
NOW, money market, and savings	1,183,744		1,641		0.56	%	1,173,093		1,256		0.43	%
Time deposits	149,898		270		0.72	%	203,679		189		0.37	%
Brokered deposits	198,703		570		1.15	%	220,098		395		0.72	%
Total interest-bearing deposits	1,532,345		2,481		0.65	%	1,596,870		1,840		0.46	%
Other borrowings	214,931		528		0.99	%	204,231		235		0.46	%
Long-term debt	49,423		824		6.69	%	49,254		832		6.79	%
Total interest-bearing liabilities	1,796,699		3,833		0.86	%	1,850,355		2,907		0.63	%
Demand deposits	626,330						538,422
Other liabilities	22,535						30,163
Shareholders’ equity	316,825						299,170
Total liabilities and shareholders’ equity	$	2,762,389					$	2,718,110
Net interest spread					3.01	%					2.96	%
Net interest income and net interest margin(2)			$	20,712	3.26	%			$	19,283	3.12	%
(1) Interest revenue on tax-exempt securities has been increased to reflect comparable interest on taxable securities. The rate used was 35%, reflecting the statutory federal income tax rate.
(2) Taxable equivalent net interest income divided by total interest-earning assets using the appropriate day count convention based on the type of interest-earning asset.

40

Table 2 - Average Balance Sheets and Net Interest Analysis (continued)
(dollars in thousands; taxable equivalent)
	Six months ended June 30,
	2017						2016
	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	$	79,251	$	398	1.01	%	$	74,355	$	301	0.81	%
Other short-term investments	17,402		164		1.90	%	28,773		183		1.28	%
Investment securities:
Taxable investment securities	356,485		3,386		1.92	%	334,059		2,681		1.61	%
Non-taxable investment securities(1)	80,826		1,465		3.66	%	24,025		375		3.14	%
Total investment securities	437,311		4,851		2.24	%	358,084		3,056		1.72	%
Total loans	1,955,915		41,355		4.26	%	1,941,217		39,906		4.13	%
FHLB and FRB stock	19,479		493		5.10	%	11,845		297		5.04	%
Total interest-earning assets	2,509,358		47,261		3.80	%	2,414,273		43,743		3.64	%
Non-earning assets	219,381						255,157
Total assets	$	2,728,739					$	2,669,430
Liabilities
Interest bearing deposits:
NOW, money market, and savings	1,160,545		2,956		0.51	%	1,145,205		2,307		0.41	%
Time deposits	156,423		541		0.70	%	235,505		413		0.35	%
Brokered deposits	195,150		1,031		1.07	%	218,294		794		0.73	%
Total interest-bearing deposits	1,512,118		4,528		0.60	%	1,599,003		3,514		0.44	%
Other borrowings	204,761		866		0.85	%	151,794		383		0.51	%
Long-term debt	49,402		1,647		6.72	%	49,234		1,642		6.71	%
Total interest-bearing liabilities	1,766,281		7,041		0.80	%	1,800,031		5,539		0.62	%
Demand deposits	623,344						546,485
Other liabilities	26,547						27,427
Shareholders’ equity	312,567						295,488
Total liabilities and shareholders’ equity	$	2,728,739					$	2,669,430
Net interest spread					3.00	%					3.02	%
Net interest income and net interest margin(2)			$	40,220	3.23	%			$	38,204	3.18	%
(1) Interest revenue on tax-exempt securities has been increased to reflect comparable interest on taxable securities. The rate used was 35%, reflecting the statutory federal income tax rate.
(2) Taxable equivalent net interest income divided by total interest-earning assets using the appropriate day count convention based on the type of interest-earning asset.

41

The following table shows the relative effect on taxable equivalent net interest income for changes in the average outstanding amounts (volume) of interest-earning assets and interest-bearing liabilities and the rates earned and paid on such assets and liabilities (rate). Variances resulting from a combination of changes in rate and volume are allocated in proportion to the absolute dollar amounts of the change in each category.

Table 3 - Changes in Taxable Equivalent Net Interest Income
(dollars in thousands)
	Three Months Ended June 30, 2017 Compared to 2016 Increase (decrease) Due to Changes in:									Six Months Ended June 30, 2017 Compared to 2016 Increase (decrease) Due to Changes in:
	Volume			Yield/Rate			Total Change			Volume			Yield/Rate		Total Change
Interest earning assets
Interest bearing deposits in other banks	$	3		$	99		$	102		$	25		$	72	$	97
Other short-term investments	(20		)	37			17			(110		)	91		(19		)
Investment securities:
Taxable investment securities	220			459			679			211			494		705
Non-taxable investment securities	461			37			498			1,028			62		1,090
Total investment securities	681			496			1,177			1,239			556		1,795
Total loans	(440		)	1,520			1,080			289			1,160		1,449
FHLB and FRB stock	62			(83		)	(21		)	192			4		196
Total interest-earning assets	286			2,069			2,355			1,635			1,883		3,518
Interest bearing liabilities
Interest bearing deposits:
NOW, money market, and savings	15			370			385			39			610		649
Time deposits	(97		)	178			81			(274		)	402		128
Brokered deposits	(61		)	236			175			(122		)	359		237
Total interest-bearing deposits	(143		)	784			641			(357		)	1,371		1,014
Total borrowings	26			267			293			223			260		483
Total long-term debt	3			(11		)	(8		)	3			2		5
Total interest-bearing liabilities	(114		)	1,040			926			(131		)	1,633		1,502
Change in net interest income	$	400		$	1,029		$	1,429		$	1,766		$	250	$	2,016

Provision for Loan Losses

Management considers a number of factors in determining the required level of the allowance for loan losses and the provision required to achieve what is believed to be appropriate reserve level, including historical loss experience, loan growth, credit risk rating trends, nonperforming loan levels, delinquencies, loan portfolio concentrations and economic and market trends. The provision for loan losses represents management’s determination of the amount necessary to be charged against the current period’s earnings to maintain the allowance for loan losses at a level that it considered adequate in relation to the estimated losses inherent in the loan portfolio.

For the three months ended June 30, 2017, the provision for loan losses was $2.0 million, an increase of $1.2 million, or 155%, compared to the three months ended June 30, 2016. For the six months ended June 30, 2017, the provision for loan losses was $2.6 million, an increase of $1.5 million, or 128%, compared to the six months ended June 30, 2016.

The higher provision for the three and six months ended June 30, 2017 was primarily related to the downgrade of a $7.7 million loan relationship to nonperforming and an additional $1.0 million specific reserve related to this downgrade. At June 30, 2017, the specific reserve for this loan relationship totaled $2.8 million. At June 30, 2017, nonperforming loans totaled $12.3 million compared to $922,000 at June 30, 2016. Net loan charge-offs were .01% and .14%, respectively, of average loans (annualized) for the three and six months ended June 30, 2017 compared to 0% and .17%, respectively, for the three and six months ended June 30, 2016. The allowance for loan losses to total loans at June 30, 2017 was 1.11%, compared to .95% at June 30, 2016.

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Noninterest Income

Noninterest income for the three and six months ended June 30, 2017 was $5.3 million and $9.1 million, respectively, a decrease of $3.6 million, or 40%, compared to the second quarter of 2016, and a decrease of $4.2 million, or 31%, from the six months ended June 30, 2016. The following table presents the components of noninterest income.

Table 4 - Noninterest Income
(dollars in thousands)
	Three months ended June 30,				Change						Six months ended June 30,				Change
	2017		2016		$			%			2017		2016		$			%
Service charges	$	1,274	$	1,392	$	(118	)	(8	)	%	$	2,623	$	2,890	$	(267	)	(9	)	%
Securities gains, net	—		11		(11		)	(100	)		—		44		(44		)	(100	)
Gain on sales of other assets	666		31		635			2,048			744		79		665			842
Mortgage income	388		447		(59		)	(13	)		645		786		(141		)	(18	)
Trust income	488		386		102			26			895		700		195			28
Derivatives income (loss)	116		98		18			18			65		163		(98		)	(60	)
Bank owned life insurance	384		398		(14		)	(4	)		762		791		(29		)	(4	)
SBA lending activities	1,171		1,204		(33		)	(3	)		2,398		2,084		314			15
TriNet lending activities	20		761		(741		)	(97	)		40		1,144		(1,104		)	(97	)
Gains on sale of branches	302		3,885		(3,583		)	(92	)		302		3,885		(3,583		)	(92	)
Other noninterest income	478		267		211			79			670		734		(64		)	(9	)
Total noninterest income	$	5,287	$	8,880	$	(3,593	)	(40	)	%	$	9,144	$	13,300	$	(4,156	)	(31	)	%

Service charges for the second quarter and first six months of 2017 decreased $118,000, or 8%, and $267,000, or 9%, respectively, from the same periods in 2016. The decrease was primarily due to the reduction of retail customer activity from the sale of seven legacy FSGBank branches in the second quarter of 2016.

Gain on sales of other assets for the second quarter and first six months of 2017 increased $635,000 and $665,000, respectively, from the same periods in 2016 due to a $240,000 gain on sale of other real estate and a $426,000 gain on the sale of a tax credit investment during the second quarter of 2017. Trust income for the second quarter and first six months of 2017 increased $102,000, or 26%, and $195,000, or 28%, respectively, from the same periods in 2016 due to an increase in managed assets.

Income from SBA lending activities for the second quarter of 2017 decreased $33,000, or 3%, from the same period in 2016, due to a lower level of loan sales. During the three months ended June 30, 2017 and 2016, guaranteed portions of 10 SBA loans with principal balances of $18.8 million and $19.6 million, respectively, were sold in the secondary market. Income from SBA lending activities for the first six months of 2017 increased $314,000, or 15%, from the same period in 2016, due to a higher level of loan sales earlier in 2017. During the six months ended June 30, 2017 and 2016, guaranteed portions of 21 and 20 SBA loans with principal balances of $36.9 million and $30.0 million, respectively, were sold in the secondary market. During the three and six months ended June 30, 2016, the TriNet lending division contributed $761,000 and $1.1 million, respectively, in noninterest income from the sale of loans. During the third quarter of 2016, Atlantic Capital made the decision to close the TriNet Lending division.

On December 17, 2015, Atlantic Capital announced that it had entered into agreements for the sale of seven legacy FSGBank branches in Eastern Tennessee. The sale of four of the branches closed on April 1, 2016 and the sale of the remaining three branches closed on May 13, 2016. The branch sales resulted in a net gain of $3.9 million for the six months ended June 30, 2016 and included the sale of approximately $191.0 million in deposits, $34.7 million in loans and $8.6 million in other assets. The net gain included the write-off of $2.0 million in core deposit intangibles. In addition, $305,000 in expenses related to the sales were recorded in noninterest expense.

On December 9, 2016, Atlantic Capital entered into a definitive agreement to sell one branch in Cleveland, Tennessee, to SmartBank. The sale closed in the second quarter of 2017, and resulted in a net gain of $302,000 as well as a reduction of approximately $21.9 million in deposits and approximately $27.3 million in loans and other assets. The gross gain of $533,000 was reduced by an impairment of $337,000 in core deposit intangibles, which was offset by a $106,000 reversal in time deposit premium. There were also $38,000 of expenses associated with the divestiture included in noninterest expense in the second quarter of 2017.

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Noninterest Expense

The following table presents the components of noninterest expense.

Table 5 - Noninterest Expense
(dollars in thousands)
	Three months ended June 30,				Change						Six months ended June 30,				Change
	2017		2016		$			%			2017		2016		$			%
Salaries and employee benefits	$	10,603	$	10,420	$	183		2		%	$	21,668	$	20,975	$	693		3		%
Occupancy	1,074		1,274		(200		)	(16	)		2,304		2,374		(70		)	(3	)
Equipment and software	996		724		272			38			1,801		1,410		391			28
Professional services	973		760		213			28			1,877		1,508		369			24
Postage, printing and supplies	78		159		(81		)	(51	)		163		328		(165		)	(50	)
Communications and data processing	1,069		694		375			54			2,056		1,610		446			28
Marketing and business development	179		317		(138		)	(44	)		449		584		(135		)	(23	)
FDIC premiums	132		493		(361		)	(73	)		446		891		(445		)	(50	)
Merger and conversion costs	304		1,210		(906		)	(75	)		304		1,959		(1,655		)	(84	)
Amortization of intangibles	425		668		(243		)	(36	)		895		1,430		(535		)	(37	)
Foreclosed property/problem asset expense	107		55		52			95			110		159		(49		)	(31	)
Other noninterest expense	1,683		2,169		(486		)	(22	)		3,294		3,981		(687		)	(17	)
Total noninterest expense	$	17,623	$	18,943	$	(1,320	)	(7	)	%	$	35,367	$	37,209	$	(1,842	)	(5	)	%

Noninterest expense for the second quarter of 2017 was $17.6 million, a decrease of $1.3 million, or 7%, from the second quarter of 2016. For the six months ended June 30, 2017, noninterest expense totaled $35.4 million, a decrease of $1.8 million, or 5%, from the same period in 2016. The decrease from the prior periods mostly reflects lower merger and conversion costs related to the acquisition of First Security.

Salaries and employee benefits expense for the three months ended June 30, 2017 totaled $10.6 million, an increase of $183,000, or 2%, from the same period in 2016. For the first six months of 2017, salaries and employee benefits totaled $21.7 million, an increase of $693,000, or 3%, from the first six months of 2016. The increase was primarily attributable to higher salary and insurance costs. Full time equivalent headcount totaled 329 at June 30, 2017, compared to 337 at June 30, 2016, a decrease of 8 positions, mainly from branch closures and divestitures.

Occupancy costs were $1.1 million for the second quarter of 2017, a decrease of $200,000, or 16%, compared to the second quarter of 2016. For the six months ended June 30, 2017, occupancy costs were $2.3 million, a decrease of $70,000, or 3%, from the first six months of 2016. The decrease was due to the divestiture of seven branches in the second quarter of 2016.

Equipment and software costs were $996,000 for the second quarter of 2017, an increase of $272,000, or 38%, compared to the second quarter of 2016. For the six months ended June 30, 2017, equipment and software costs were $1.8 million, an increase of $391,000, or 28%, from the first six months of 2016. The increase was due to higher ATM managed services costs.

Professional services costs were $973,000 for the second quarter of 2017, an increase of $213,000, or 28%, compared to the second quarter of 2016. For the six months ended June 30, 2017, professional services costs were $1.9 million, an increase of $369,000, or 24%, from the first six months of 2016. The increase was due to higher accounting and consulting fees.

Communications and data processing costs were $1.1 million for the second quarter of 2017, an increase of $375,000, or 54%, compared to the second quarter of 2016. For the six months ended June 30, 2017, communications and data processing costs were $2.1 million, an increase of $446,000, or 28%, from the first six months of 2016. In 2016, core processing expenses were reduced by vendor credits.

Merger and conversion costs were $304,000 for the second quarter of 2017, a decrease of $906,000, or 75%, compared to the second quarter of 2016. For the six months ended June 30, 2017, merger and conversion costs were $304,000, a decrease of $1.7 million, or 84%, from the first six months of 2016. Merger expenses include professional fees, severance, rebranding and data conversion costs related to the acquisition of First Security.

Amortization of intangibles includes the amortization of core deposit intangible related to the acquisition of First Security and totaled $425,000 and $895,000 for the three months and six ended June 30, 2017, respectively, and $668,000 and $1.4 million for the three months and six ended June 30, 2016, respectively. The decrease in 2017 was mainly due to the write-off of core deposit

44

intangibles related to the seven branches divested during the second quarter of 2016 and one branch divested during the second quarter of 2017.

Income Taxes

Atlantic Capital monitors and evaluates the potential impact of current events on the estimates used to establish income tax expenses and income tax liabilities. On a periodic basis, Atlantic Capital evaluates its income tax positions based on current tax law and positions taken by various tax auditors within the jurisdictions where Atlantic Capital is required to file income tax returns.

The income tax provision for the second quarter and first six months of 2017 was $1.8 million and $3.3 million, respectively, as compared with $3.2 million and $4.9 million for the same periods in 2016. The effective tax rate (as a percentage of pre-tax earnings) was 29.9% and 30.7%, respectively, for the second quarter and first six months of 2017 compared to 38.5% and 38.0%, respectively, for the same periods in 2016. The decrease in the effective tax rate for the three and six months ended June 30,2017 was driven mainly by the decrease in non-deductible merger expenses in 2017 compared to 2016, excess benefit related to stock compensation in 2017 compared to 2016, and the increase in non-taxable income on municipal securities purchased throughout the latter half of 2016 and beginning of 2017.

Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts and their respective tax basis including operating losses and tax credit carryforwards. Net deferred tax assets (deferred tax assets net of deferred tax liabilities and valuation allowance) are reported in the consolidated balance sheet as a component of total assets.

Accounting Standards Codification Topic 740, Income Taxes, requires that companies assess whether a valuation allowance should be established against their deferred tax assets based on the consideration of all available evidence using a “more likely than not” standard. The determination of whether a valuation allowance for deferred tax assets is appropriate is subject to considerable judgment and requires an evaluation of all positive and negative evidence with more weight given to evidence that can be objectively verified. Each quarter, management considers both positive and negative evidence and analyzes changes in near-term market conditions as well as other factors which may impact future operating results.

Based on all evidence considered, as of June 30, 2017 and 2016, management concluded that it was more likely than not that the net deferred tax asset would be realized, except as outlined in the following discussion. At June 30, 2017 and 2016, Atlantic Capital had a deferred tax asset valuation allowance totaling $9.2 million and $9.5 million, respectively, on certain net operating loss carryforwards due to the fact that certain tax attributes are subject to an annual limitation as a result of the acquisition of First Security, which constituted a change of ownership as defined under Internal Revenue Code Section 382. Management expects to generate higher levels of future taxable income and believes this will allow for full utilization of Atlantic Capital’s remaining net operating loss carryforwards within the statutory carryforward periods.

45

FINANCIAL CONDITION

Total assets at June 30, 2017 and December 31, 2016 were $2.70 billion and $2.73 billion, respectively. Average total assets for the second quarter of 2017 were $2.76 billion, compared to $2.72 billion in the second quarter of 2016.

Loans

At June 30, 2017, total loans decreased $52.7 million, or 3%, to $1.96 billion compared to $2.02 billion at December 31, 2016, primarily due to the sale of $30.9 million in connection with the branch sale, as well as a decrease of $99.5 million in mortgage warehouse participations, resulting from a decrease in commitments and the market effect of increases in the Fed Funds rate in December 2016 and March 2017. Table 6 provides additional information regarding Atlantic Capital’s loan portfolio.

Table 6 - Loans
(dollars in thousands)
	June 30, 2017			% of Total Loans		December 31, 2016			% of Total Loans
Loans held for sale
Branch loans held for sale	$	—				$	30,917
Other loans held for sale	1,744					4,302
Total loans held for sale	$	1,744				$	35,219
Loans held for investment
Commercial loans:
Commercial and industrial	$	578,888		30	%	$	531,061		27	%
Commercial real estate:
Owner occupied	351,733			18		352,523			18
Non-owner occupied	631,142			32		506,255			26
Construction and land	125,058			6		219,352			11
Mortgage warehouse participations	47,992			2		147,519			7
Total commercial loans	1,734,813			88		1,756,710			89
Residential:
Residential mortgages	101,798			5		101,921			5
Home equity	79,769			4		77,358			4
Total residential loans	181,567			9		179,279			9
Consumer	31,981			2		27,338			1
Other	18,013			1		21,565			1
	1,966,374					1,984,892
Less net deferred fees and other unearned income	(4,283		)			(3,562		)
Total loans held for investment	1,962,091					1,981,330
Total loans	$	1,963,835				$	2,016,549

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Nonperforming Assets

Nonperforming assets include nonaccrual loans, accruing loans past due 90 days or more, and other real estate owned. Loans are considered to be past due when payment is not received from the borrower by the contractually specified due date. Interest accruals on loans are discontinued when interest or principal has been in default 90 days or more, unless the loan is both secured by collateral that is sufficient to repay the debt in full and the loan is in the process of collection. When a loan is placed on nonaccrual status, interest accrued and not paid in the current accounting period is reversed against current period income. Interest accrued and not paid in prior periods, if significant, is reversed against the allowance for loan losses.

Income on such loans is subsequently recognized on a cash basis as long as the future collection of principal is deemed probable or after all principal payments are received. Commercial loans are placed back on accrual status after sustained performance of timely and current principal and interest payments and it is probable that all remaining amounts due, both principal and interest, are fully collectible according to the terms of the loan agreement. Residential loans and consumer loans are generally placed back on accrual status when they are no longer past due.

Purchased Credit Impaired (“PCI”) loans accounted for under ASC 310-30 are considered past due or delinquent when the contractual principal or interest due in accordance with the terms of the loan agreement remains unpaid after the due date of the scheduled payment. However, these loans are considered as performing, even though they may be contractually past due, as any non-payment of contractual principal or interest is considered in the periodic re-estimation of expected cash flows and is included in the resulting recognition of current period covered loan loss provision or future period yield adjustments. PCI loans totaling $1.2 million were not classified as nonaccrual at June 30, 2017 as the carrying value of the respective loan or pool of loans cash flows were considered estimable and collection was probable. Therefore, interest revenue, through accretion of the difference between the carrying value of the loans and the expected cash flows, is being recognized on all PCI loans.

At June 30, 2017, Atlantic Capital’s nonperforming assets totaled $14.1 million, or 0.52% of assets, compared to $3.5 million, or 0.13% of assets, at December 31, 2016. The increase was primarily due to Atlantic Capital Bank N.A. (the “Bank”) placing three loan relationships totaling $10.6 million on nonaccrual status.

Nonaccrual loans totaled $11.9 million and $621,000 as of June 30, 2017 and December 31, 2016, respectively. The increase was primarily due to the Bank placing three loan relationships totaling $10.6 million on nonaccrual status. Loans past due 90 days and still accruing totaled $391,000 at June 30, 2017 compared to $994,000 at December 31, 2016. Table 7 provides details on nonperforming assets and other risk elements.

Table 7 - Nonperforming assets
(dollars in thousands)
	June 30, 2017			March 31, 2017			December 31, 2016			September 30, 2016			June 30, 2016
Nonaccrual loans	$	11,909		$	3,212		$	621		$	28		$	657
Loans past due 90 days and still accruing	391			771			994			762			265
Total nonperforming loans* (NPLs)	12,300			3,983			1,615			790			922
Other real estate owned	1,819			1,869			1,872			1,727			951
Total nonperforming assets (NPAs)	$	14,119		$	5,852		$	3,487		$	2,517		$	1,873
NPLs as a percentage of total loans	0.63		%	0.21		%	0.08		%	0.04		%	0.05		%
NPAs as a percentage of total assets	0.52			0.21			0.13			0.09			0.07

*Nonperforming loans exclude those loans which are PCI loans

Troubled Debt Restructurings

TDRs are selectively made to provide relief to customers experiencing liquidity challenges or other circumstances that could affect their ability to meet their debt obligations. Typical modifications include short-term deferral of interest or modification of payment terms. Nonperforming TDRs are not accruing interest and are included as nonperforming assets within nonaccrual loans. TDRs which are accruing interest based on the restructured terms are considered performing. Table 8 summarizes TDRs.

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Table 8 - Troubled Debt Restructurings
(dollars in thousands)
	June 30, 2017		December 31, 2016
Accruing TDRs	$	5,558	$	6,602
Nonaccruing TDRs	534		—
Total TDRs	$	6,092	$	6,602

Potential Problem Loans

Management identifies and maintains a list of potential problem loans. These are loans that are internally risk graded special mention or below but which are not included in nonaccrual status and are not past due 90 days or more. A loan is added to the potential problem list when management becomes aware of information about possible credit problems of the borrower which raises serious doubts as to the ability of such borrower to comply with the current loan repayment terms. Potential problem loans totaled $57.3 million and $47.6 million, respectively, as of June 30, 2017 and December 31, 2016. As a number of potential problem loans are real estate secured, management closely tracks the current values of real estate collateral when assessing the collectability of these loans.

Allowance for Loan Losses

At June 30, 2017, the allowance for loan losses totaled $21.9 million, or 1.11% of loans, compared to $20.6 million, or 1.04% of loans, at December 31, 2016. The increase in the allowance was primarily related to the downgrade of a $7.7 million loan relationship to nonperforming and an additional $1.0 million specific reserve related to this downgrade.

Net charge-offs for the second quarter of 2017 and 2016 were $49,000 and $8,000, respectively. For the six months ended June 30, 2017, net charge-offs totaled $1.3 million compared to $1.7 million for the same period in 2016. Table 9 provides details concerning the allowance for loan losses during the past five quarters.

Table 9 - Allowance for Loan Losses (ALL)
(dollars in thousands)
	2017								2016
	Second				First				Fourth				Third				Second
	Quarter				Quarter				Quarter				Quarter				Quarter
Balance at beginning of period	$	19,939			$	20,595			$	18,534			$	18,377			$	17,608
Provision for loan losses	2,048				565				2,134				463				777
Provision for PCI loan losses	(68		)		69				74				—				—
Loans charged-off:
Commercial and industrial	—				(781		)		—				(61		)		(5		)
Commercial real estate	—				(132		)		24				(226		)		—
Residential mortgages	—				(46		)		—				—				(2		)
Home equity	(8		)		—				—				(9		)		(23		)
Consumer	(57		)		(332		)		(158		)		(60		)		(38		)
Other	—				—				—				(5		)		—
Total loans charged-off	(65		)		(1,291		)		(134		)		(361		)		(68		)
Recoveries on loans previously charged-off:
Commercial and industrial	7				—				—				2				—
Commercial real estate	2				—				(15		)		20				—
Construction and land	—				—				—				12				—
Residential mortgages	1				—				—				5				—
Home equity	1				—				—				2				—
Consumer	5				1				2				12				60
Other	—				—				—				2				—
Total recoveries	16				1				(13		)		55				60
Net charge-offs	$	(49	)		$	(1,290	)		$	(147	)		$	(306	)		$	(8	)
Balance at period end	$	21,870			$	19,939			$	20,595			$	18,534			$	18,377
Net charge-offs (annualized) to average loans	0.01			%	0.26			%	0.03			%	0.06			%	—			%
Allowance for loan losses to total loans	1.11				1.05				1.04				0.92				0.95

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Investment Securities

Investment securities available-for-sale totaled $450.3 million at June 30, 2017, compared to $347.7 million at December 31, 2016. Atlantic Capital purchased $121.4 million in available-for-sale securities during the first quarter of 2017, as a response to the decrease in mortgage warehouse participations. Available-for-sale securities are reported at their aggregate fair value, and unrealized gains and losses are included as a component of other comprehensive income, net of deferred taxes. As of June 30, 2017, investment securities available-for-sale had a net unrealized loss of $4.0 million, compared to a net unrealized loss of $9.6 million as of December 31, 2016. Market changes in interest rates and credit spreads result in temporary unrealized losses as the market price of securities fluctuate. After evaluating the securities with unrealized losses, management concluded that no other than temporary impairment existed as of June 30, 2017.

Changes in the amount of Atlantic Capital’s available-for-sale securities portfolio result primarily from balance sheet trends including loans, deposit balances and short-term borrowings. When inflows arising from deposits and short-term borrowings exceed loan demand, Atlantic Capital invests excess funds in the securities portfolio or in short-term investments. Conversely, when loan demand exceeds growth in deposits and short-term borrowings, Atlantic Capital allows interest-bearing balances with other banks to decline and uses proceeds from maturing or sold securities to fund loan demand. Details of investment securities at June 30, 2017 and December 31, 2016 are provided in Table 10.

Table 10 - Securities
(dollars in thousands)
	June 30, 2017				December 31, 2016
Available for Sale Securities	Amortized Cost		Fair Value		Amortized Cost		Fair Value
U.S. Government agencies	$	35,299	$	35,125	$	21,485	$	21,152
U.S. states and political divisions	97,502		94,168		96,908		90,172
Trust preferred securities	4,741		4,688		4,727		4,525
Corporate debt securities	19,777		19,220		19,928		19,231
Residential mortgage-backed securities	296,934		297,072		214,297		212,625
Total	$	454,253	$	450,273	$	357,345	$	347,705

The effective duration of Atlantic Capital’s securities at June 30, 2017 was 4.88 years.

Goodwill and Other Intangible Assets

Atlantic Capital’s core deposit intangible representing the value of the acquired deposit base, is an amortizing intangible asset that is required to be tested for impairment only when events or circumstances indicate that impairment may exist. There were no events or circumstances that led management to believe that any impairment existed at June 30, 2017 in Atlantic Capital’s other intangible assets.

Goodwill represents the premium paid for acquired companies above the fair value of the assets acquired and liabilities assumed, including separately identifiable intangible assets. Atlantic Capital evaluates its goodwill annually, or more frequently if necessary, to determine if any impairment exists.

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LIQUIDITY AND CAPITAL RESOURCES

Deposits

At June 30, 2017, total deposits were $2.11 billion, a decrease of $123.6 million, or 6%, from December 31, 2016. Noninterest-bearing demand deposits decreased $30.1 million, or 5%, and deposits to be assumed in branch sale decreased $31.6 million, or 100%, from December 31, 2016 to June 30, 2017.

Total average deposits for the quarter ended June 30, 2017 were $2.16 billion, an increase of $23.4 million, or 1%, from the same period in 2016. Average noninterest-bearing demand deposits increased $87.9 million, or 16%, and average time deposits decreased $53.8 million, or 26%, from the quarter ended June 30, 2016 to the same period in 2017. Table 11 provides additional information regarding deposits during the past five quarters.

Table 11 - Deposits
(dollars in thousands)
Period End Deposits
	June 30, 2017			March 31, 2017			December 31, 2016			September 30, 2016			June 30, 2016			Linked Quarter Change			Year Over Year Change
DDA	$	612,744		$	606,386		$	643,471		$	557,783		$	592,043		$	6,358		$	20,701
NOW	250,254			259,760			264,062			260,531			231,091			(9,506		)	19,163
Savings	30,170			30,756			27,932			29,658			30,839			(586		)	(669		)
Money Market	882,824			916,390			912,493			974,072			913,094			(33,566		)	(30,270		)
Time	142,915			150,867			157,810			172,348			178,615			(7,952		)	(35,700		)
Brokered	195,047			209,385			200,223			194,464			212,623			(14,338		)	(17,576		)
Deposits to be assumed in branch sale	—			29,495			31,589			—			—			(29,495		)	—
Total Deposits	$	2,113,954		$	2,203,039		$	2,237,580		$	2,188,856		$	2,158,305		$	(89,085	)	$	(44,351	)
Payments Clients	$	250,104		$	321,899		$	347,833		$	212,049		$	295,440		$	(71,795	)	$	(45,336	)
Average Deposits(1)
	2017						2016									Linked Quarter Change			Year Over Year Change
	Second Quarter			First Quarter			Fourth Quarter			Third Quarter			Second Quarter
DDA	$	626,330		$	620,325		$	591,166		$	555,008		$	538,422		$	6,005		$	87,908
NOW	293,160			290,862			253,187			282,701			272,556			2,298			20,604
Savings	30,468			30,306			29,741			30,692			35,090			162			(4,622		)
Money Market	860,116			815,920			853,281			923,435			865,447			44,196			(5,331		)
Time	149,898			163,021			169,677			175,135			203,679			(13,123		)	(53,781		)
Brokered	198,703			191,558			197,833			196,598			220,098			7,145			(21,395		)
Total Deposits	$	2,158,675		$	2,111,992		$	2,094,885		$	2,163,569		$	2,135,292		$	46,683		$	23,383
Payments Clients	$	244,157		$	273,630		$	211,000		$	184,895		$	176,474		$	(29,473	)	$	67,683
Noninterest bearing deposits as a percentage of average deposits	29.0		%	29.4		%	28.2		%	25.7		%	25.2		%
Cost of deposits	0.46		%	0.39		%	0.37		%	0.36		%	0.35		%
(1) Includes average balances of deposits to be assumed in branch sale.

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Short-Term Borrowings

At June 30, 2017 and December 31, 2016, Federal Funds purchased totaled $15.0 million and $0, respectively.

As a member of the Federal Home Loan Bank of Atlanta (“FHLB”), Atlantic Capital has the ability to acquire short and long-term advances through a blanket agreement secured by our unencumbered qualifying 1-4 family first mortgage loans and by pledging investment securities or individual, qualified loans, subject to approval of the FHLB. At June 30, 2017 and December 31, 2016, Atlantic Capital had FHLB advances of $180.0 million and $110.0 million, respectively. The balance of FHLB borrowings increased due to an increase in short-term funding needs.

Long-Term Debt

During the third quarter of 2015, Atlantic Capital issued $50.0 million in fixed-to-floating rate subordinated notes due in 2025, all of which was outstanding at June 30, 2017.

Liquidity risk management

Liquidity risk is the risk that an institution will be unable to generate or obtain sufficient funding, at a reasonable cost, to meet operational cash needs and to take advantage of revenue producing opportunities as they arise. Other forms of liquidity risk include market constraints on the ability to convert assets into cash at expected levels, an inability to access funding sources at sufficient levels at a reasonable cost, and changes in economic conditions or exposure to credit, market, operational, legal and reputation risks that can affect an institution’s liquidity risk profile. Liquidity management involves maintaining Atlantic Capital’s ability to meet the daily cash flow requirements of Atlantic Capital’s customers, both depositors and borrowers.

Atlantic Capital utilizes various measures to monitor and control liquidity risk across three different types of liquidity:

• tactical liquidity measures the risk of a negative cash flow position whereby cash outflows exceed cash inflows over a short-term horizon;

• structural liquidity measures the amount by which illiquid assets are supported by long-term funding; and

• contingent liquidity utilizes cash flow stress testing across three crisis scenarios to determine the adequacy of Atlantic Capital’s liquidity.

Atlantic Capital aims to maintain a diverse mix of existing and potential liquidity sources to support the liquidity management function. At its core is a reliance on the customer deposit book, due to the low cost it offers. Other sources of liquidity include asset-based liquidity in the form of cash and unencumbered securities, as well as access to wholesale funding from external counterparties, primarily advances from the FHLB of Atlanta, Federal Funds lines and other borrowing facilities. Atlantic Capital aims to avoid funding concentrations by diversifying external secured and unsecured funding with respect to maturities, counterparties and nature. At June 30, 2017, management believes that Atlantic Capital had sufficient on-balance sheet liquidity to meet its funding needs.

At June 30, 2017, Atlantic Capital had access to $360.0 million in unsecured borrowings and $629.2 million in secured borrowings through various sources. Atlantic Capital also has the ability to attract more retail deposits by offering aggressively priced rates.

Shareholders’ Equity and Capital Adequacy

Shareholders’ equity at June 30, 2017 was $319.4 million, an increase of $15.8 million, or 5%, from December 31, 2016. Accumulated other comprehensive income, which includes unrealized gains and losses on securities available-for-sale and unrealized gains and losses on derivatives qualifying as cash flow hedges, is excluded in the calculation of regulatory capital ratios.

Atlantic Capital and the Bank are required to meet minimum capital requirements imposed by regulatory authorities. Failure to meet certain capital requirements may result in actions by regulatory agencies that could have a material impact on Atlantic Capital’s consolidated financial statements. Tables 12 and 13 provide additional information regarding regulatory capital requirements and Atlantic Capital’s capital levels.

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Table 12 - Capital Ratios
(dollars in thousands)
	Consolidated						Bank						Regulatory Guidelines
	June 30, 2017			December 31, 2016			June 30, 2017			December 31, 2016			Minimum		Well capitalized		Minimum Capital plus capital conservation buffer 2019
Risk based ratios:
Common equity tier 1 capital	10.9		%	10.3		%	12.4		%	11.8		%	4.5	%	6.5	%	7.0	%
Tier 1 Capital	10.9			10.3			12.4			11.8			6.0		8.0		8.5
Total capital	14.0			13.3			13.4			12.7			8.0		10.0		10.5
Leverage ratio	9.5			9.1			10.7			10.4			4.0		5.0		N/A
Common equity tier 1 capital	$	254,997		$	241,313		$	289,691		$	276,778
Tier 1 capital	254,997			241,313			289,691			276,778
Total capital	327,098			311,954			312,341			298,053
Risk weighted assets	2,337,068			2,343,622			2,336,639			2,344,387
Quarterly average total assets for leverage ratio	2,762,389			2,654,473			2,704,198			2,654,473

Atlantic Capital continues to exceed minimum capital standards and the Bank remains “well-capitalized” under regulatory guidelines.

In July 2013, bank regulatory agencies approved the Basel III capital guidelines, which are aimed at strengthening existing capital requirements for bank holding companies through a combination of higher minimum capital requirements, new capital conservation buffers and more conservative definitions of capital and balance sheet exposure. Atlantic Capital and the Bank became subject to the requirements of Basel III effective January 1, 2015, subject to a transition period for several aspects of the rule.

Under the revised rules, Atlantic Capital’s common equity tier 1 ratio was 10.9% at June 30, 2017, exceeding the fully phased-in minimum of 7.0%, which includes the 2.5% minimum capital conservation buffer. Management continues to monitor Basel III developments and remains committed to managing Atlantic Capital’s capital levels in a prudent manner.

Table 13 - Tier 1 Common Equity
(dollars in thousands)
	June 30, 2017
Tier 1 capital	$	254,997
Less: restricted core capital	—
Tier 1 common equity	$	254,997
Risk-adjusted assets	$	2,337,068
Tier 1 common equity ratio	10.9		%

Off-Balance Sheet Arrangements

Atlantic Capital makes contractual commitments to extend credit and issues standby letters of credit in the ordinary course of its business activities. These commitments are legally binding agreements to lend money to customers at predetermined interest rates for a specified period of time. In addition to commitments to extend credit, Atlantic Capital also issues standby letters of credit which are assurances to a third party that it will not suffer a loss if the customer fails to meet a contractual obligation to the third party. At June 30, 2017, Atlantic Capital had issued commitments to extend credit of approximately $631.3 million and standby letters of credit of approximately $15.9 million through various types of commercial lending arrangements.

Based on historical experience, many of the commitments and letters of credit will expire unfunded. Through its various sources of liquidity, Atlantic Capital believes it will be able to fund these obligations as they arise. Atlantic Capital evaluates each customer’s

52

credit worthiness on a case-by-case basis. The amount of collateral obtained, if deemed necessary upon extension of credit, is based on Atlantic Capital’s credit evaluation of the borrower. Collateral varies but may include accounts receivable, inventory, property, plant and equipment, and commercial and residential real estate.

Contractual Obligations

There have been no significant changes in Atlantic Capital’s contractual obligations at June 30, 2017 compared to December 31, 2016.

Risk Management

Effective risk management is critical to Atlantic Capital’s success. The Dodd-Frank Act requires that bank holding companies with total assets in excess of $10 billion establish an enterprise-wide risk committee consisting of members of its board of directors. Although Atlantic Capital does not have total assets in excess of $10 billion, the Bank’s board of directors has an Audit and Risk Committee that, among other responsibilities, provides oversight of enterprise-wide risk management activities. The Audit and Risk Committee reviews the Bank’s activities in identifying, measuring and mitigating existing and emerging risks (including credit, liquidity, interest-rate, compliance, operational, strategic and reputational risks). The committee monitors management’s execution of risk management practices in accordance with the risk appetite of the Bank, reviews supervisory examination reports together with management’s response to such examinations and discusses legal matters that may have a material impact on the financial statements or Atlantic Capital’s compliance policies. With guidance from and oversight by the Audit and Risk Committee, management continually refines and enhances its risk management policies and procedures to maintain effective risk management programs and processes.

Credit risk management

Credit risk is the risk of not collecting payments pursuant to the contractual terms of loans, leases and investment securities. Atlantic Capital’s independent credit review function conducts risk reviews and analyses of loans to help assure compliance with credit policies and to monitor asset quality trends.The risk reviews include portfolio analysis by industry, collateral type and product. Atlantic Capital has implemented policies and procedures designed to identify potential problem loans as early as possible, to record charge-offs or write-downs as appropriate and to maintain adequate allowances for loan losses that are inherent in the loan portfolio.

Market Risk

Market risk reflects the risk of economic loss resulting from adverse changes in market price and interest rates. This risk of loss can be reflected in diminished current market values and/or reduced potential net interest income in future periods. Atlantic Capital’s market risk arises primarily from interest rate risk inherent in Atlantic Capital’s lending and deposit-taking activities. The structure of Atlantic Capital’s loan and deposit portfolios is such that a significant decline in interest rates may adversely impact net market values and net interest income. Atlantic Capital does not maintain a trading account nor is Atlantic Capital subject to currency exchange risk or commodity price risk.

Interest Rate Risk Management

Interest rate risk results principally from assets and liabilities maturing or repricing at different points in time, from assets and liabilities repricing at the same point in time but in different amounts and from short-term and long-term interest rates changing in different magnitudes. Market interest rates also have an impact on the interest rate and repricing characteristics of loans that are originated as well as the rate characteristics of interest-bearing liabilities.

Atlantic Capital assesses interest rate risk by forecasting net interest income under various interest rate scenarios and comparing those results to forecasted net interest income assuming stable rates. Atlantic Capital’s rate shock simulation, as of June 30, 2017, indicates that, over a 12-month period, net interest income is estimated to increase by 13.88% with rates rising 200-basis points. The increase in net interest income is primarily due to the short-term repricing characteristics of the loan portfolio, combined with a favorable funding mix. Atlantic Capital’s loan portfolio consists mainly of floating rate loans. Atlantic Capital’s core client deposits are likely to allow Atlantic Capital to lag short term interbank rate indices when pricing deposits. Transaction accounts comprise a significant amount of Atlantic Capital’s total deposits.

Table 14 provides the impact on net interest income resulting from various interest rate scenarios as of June 30, 2017 and December 31, 2016.

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Table 14 - Net Interest Income Sensitivity Simulation Analysis
	Estimated change in net interest income
Change in interest rate (basis point)	June 30, 2017			December 31, 2016
-100	(10.84	)	%	(8.59	)	%
+100	7.22			8.20
+200	13.88			16.39
+300	20.39			20.34

Atlantic Capital also utilizes the market value of equity (“MVE”) as a tool in measuring and managing interest rate risk. Long-term interest rate risk exposure is measured using the MVE sensitivity analysis to study the impact of long-term cash flows on capital. As of June 30, 2017, the MVE calculated with a 200-basis point shock up in rates decreased by (4.54)% from the base case MVE value. Table 15 presents the MVE profile as of June 30, 2017 and December 31, 2016.

Table 15 - Market Value of Equity Modeling Analysis
	Estimated % change in MVE
Change in interest rate (basis point)	June 30, 2017			December 31, 2016
-100	(1.00	)	%	0.90		%
+100	(1.08	)		(2.39	)
+200	(4.54	)		(4.52	)
+300	(9.15	)		(5.94	)

Atlantic Capital may utilize interest rate swaps, floors, collars or other derivative financial instruments in an attempt to manage Atlantic Capital’s overall sensitivity to changes in interest rates.

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ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

The information required by this item is included in Part I, Item 2 of this report under “Management’s Discussion and Analysis of Financial Condition and Results of Operations-Risk Management.”

ITEM 4. CONTROLS AND PROCEDURES

The Company maintains disclosure controls and procedures as required under Rule 13a-15 promulgated under the Exchange Act, that are designed to ensure that information required to be disclosed in the Company’s Exchange Act reports is recorded, processed, summarized, and reported within the time periods specified in the SEC’s rules and forms, and that such information is accumulated and communicated to the Company’s management, including its Chief Executive Officer and Chief Financial Officer, as appropriate, to allow timely decisions regarding required disclosure. As of June 30, 2017, the Company’s management carried out an evaluation, under the supervision and with the participation of the Chief Executive Officer and Chief Financial Officer, of the effectiveness of its disclosure controls and procedures. Based on the foregoing, the Chief Executive Officer and Chief Financial Officer concluded that the Company’s disclosure controls and procedures were effective as of June 30, 2017.

No changes were made to the Company’s internal control over financial reporting (as defined in Rule 13a-15(f) promulgated under the Exchange Act) during the quarter ended June 30, 2017 that have materially affected, or are reasonably likely to materially affect, the Company’s internal control over financial reporting.

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PART II - OTHER INFORMATION

ITEM 1. LEGAL PROCEEDINGS

In the ordinary course of operations, Atlantic Capital and the Bank are defendants in various legal proceedings. Additionally, in the ordinary course of business, Atlantic Capital and the Bank are subject to regulatory examinations and investigations. Based on our current knowledge and advice of counsel, in the opinion of management there is no such pending or threatened legal matter which would result in a material adverse change, either individually or in the aggregate, in the consolidated financial condition or results of operations of Atlantic Capital.

ITEM 1A. RISK FACTORS

In addition to the other information set forth in this report, you should carefully consider the factors discussed in the Company’s Annual Report on Form 10-K for the period ended December 31, 2016, under Part I, Item 1A “Risk Factors,” because these risk factors may affect the operations and financial results of the Company. Our evaluation of our risk factors has not changed materially since those discussed in the Annual Report. The risks described in the Annual Report are not the only risks facing the Company. Additional risks and uncertainties not currently known to us or that we currently deem to be immaterial also may materially adversely affect our business, financial condition, and operating results.

ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

None.

ITEM 3. DEFAULTS UPON SENIOR SECURITIES

None.

ITEM 4. MINE SAFETY DISCLOSURES

Not applicable.

ITEM 5. OTHER INFORMATION

None.

ITEM 6. EXHIBITS

The exhibits listed in the accompanying Exhibit Index are filed as part of this report.

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SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this Report to be signed on its behalf by the undersigned thereunto duly authorized.

ATLANTIC CAPITAL BANCSHARES, INC.

/s/ Douglas L. Williams

Douglas L. Williams

Chief Executive Officer (Principal Executive Officer)

/s/ Patrick T. Oakes

Patrick T. Oakes

Executive Vice President and

Chief Financial Officer

(Principal Financial and Accounting Officer)

Date: August 8, 2017

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EXHIBIT INDEX

3.1	Amended and Restated Articles of Incorporation of Atlantic Capital Bancshares, Inc., which is incorporated by reference to Exhibit 3.1 to our Registration Statement on Form S-4 (file no. 333-204855), initially filed with the Securities and Exchange Commission on June 10, 2015
3.2	Amended and Restated Bylaws of Atlantic Capital Bancshares, Inc., which is incorporated by reference to Exhibit 3.1 to our Current Report on Form 8-K (file no. 001-37615), filed with the Securities and Exchange Commission on January 19, 2017
10.1	Amendment No. 1 to Employment Agreement, dated July 20, 2017, by and among Atlantic Capital Bancshares, Inc., Atlantic Capital Bank, and Douglas L. Williams.*
10.2	Amendment No. 1 to Employment Agreement, dated July 20, 2017, by and among Atlantic Capital Bancshares, Inc., Atlantic Capital Bank, and D. Michael Kramer.*
10.3	Atlantic Capital Bancshares, Inc. 2015 Stock Incentive Plan (as amended and restated effective May 18, 2017), which is incorporated by reference to Exhibit 10.1 to our Current Report on Form 8-K (file no. 001-37615), initially filed with the Securities and Exchange Commission on May 22, 2017.*
10.4	Atlantic Capital Bancshares, Inc. Change in Control Plan.*
31.1	Certification of Chief Executive Officer pursuant to Rule 13a-14(a) under the Exchange Act, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
31.2	Certification of Chief Financial Officer pursuant to Rule 13a-14(a) under the Exchange Act, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
32.1	Certification of Chief Executive Officer pursuant to Rule 13a-14(b) under the Exchange Act, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
32.2	Certification of Chief Financial Officer pursuant to Rule 13a-14(b) under the Exchange Act, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
101	The following materials from our Quarterly Report on Form 10-Q for the quarter ended June 30, 2017, formatted in XBRL (eXtensible Business Reporting Language): (i) the Consolidated Balance Sheets as of June 30, 2017 and December 31, 2016; (ii) the Consolidated Statements of Income for the three and six months ended June 30, 2017 and 2016; (iii) the Consolidated Statements of Comprehensive Income for the three and six months ended June 30, 2017 and 2016; (iv) the Consolidated Statements of Shareholders’ Equity for the six months ended June 30, 2017 and 2016; (v) the Consolidated Statements of Cash Flows for the six months ended June 30, 2017 and 2016; and (vi) the Notes to the Unaudited Consolidated Financial Statements

* Management contract or compensatory plan or arrangement.

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EX-10.1

Exhibit 10.1

AMENDMENT NO. 1 TO EMPLOYMENT AGREEMENT

THIS AMENDMENT NO. 1 TO EMPLOYMENT AGREEMENT (the “Amendment”) is made and entered into effective July 20, 2017 (the “Effective Date”), by and among ATLANTIC CAPITAL BANCSHARES, INC., a Georgia corporation (the “Holding Company”); ATLANTIC CAPITAL BANK, a wholly-owned Georgia banking subsidiary of the Holding Company (the “Bank”) (collectively, the “Employers”); and DOUGLAS L. WILLIAMS (“Executive”).

WITNESSETH:

WHEREAS, the Employers and the Executive hereby agree to amend that Employment Agreement among the Employers and the Executive dated January 1, 2015 (the “Employment Agreement”) pursuant Section 17(a) thereof;

NOW, THEREFORE, for and in consideration of the Amendment’s mutual covenants, and other good and valuable consideration, the receipt and legal sufficiency of which are hereby acknowledged, the parties agree as follows:

1.Section 7(b) of the Employment Agreement is hereby amended to add a new subpart (iv) in the fourth to last sentence of that section, which shall read as follows:

“(iv) any Protected Rights (as defined herein);”

The remaining subpart of that sentence shall be renumbered to “v.”

2.Section 7(c) of the Employment Agreement is hereby amended to add a new subpart (iv) in the fourth to last sentence of that section, which shall read as follows:

“(iv) any Protected Rights;”

The remaining subpart of that sentence shall be renumbered to “v.”

3.Section 9 of the Employment Agreement is hereby amended to add a new subsection (h), which shall read as follows:

“(h)    Notwithstanding anything in this Agreement to the contrary, (a) nothing in this Agreement, including but not limited to the release, or other agreement prohibits the Executive from reporting possible violations of law or regulation to any governmental agency or entity, including but not limited to the Department of Justice, the Securities and Exchange Commission, the Congress and any agency Inspector General (the “Government Agencies”), or communicating with Government Agencies or otherwise participating in any investigation or proceedings that may be conducted by Government Agencies, including providing documents or other information; (b) the Executive does not need the prior authorization of the Employers to take any action described in (a), and the Executive is not required to notify the Employers that he or she has taken any action described in (a); and (c) neither this Agreement nor the release limits the Executive’s right to receive an award for providing information relating to a possible securities law violation to the Securities and Exchange Commission. Further, notwithstanding the foregoing, the Executive will not be held criminally or civilly liable under any federal, state or local trade secret law for the disclosure of a trade secret that (x) is made (i) in confidence to a federal, state or local official, either directly or indirectly, or to an attorney; and (ii) solely for the purpose of reporting or investigating a suspected violation or law; or (y) is made in a compliant or other document filed in a lawsuit or other proceeding, if such filing is made under seal. Additionally, an individual suing an employer for retaliation based on the reporting of a suspected violation of law may disclose a trade secret to his or her attorney and use the trade secret information in the court proceeding, so long as any document containing the trade secret is filed under seal and the individual does not disclose the trade secret except pursuant to court order. The rights described in this subsection (h) are referred to in this Agreement as the ‘Protected Rights.’”

4.Exhibit B (the Release) of the Employment Agreement is hereby amended by deleting the current Exhibit B and replacing it with the form of Release attached to this Amendment as Exhibit A.

[Remainder of Page Left Blank]

IN WITNESS WHEREOF, the Holding Company and the Bank have caused this Amendment to be executed and their seals to be affixed hereunto by their duly authorized officers, and Executive has signed this Amendment, as of the Effective Date set forth above.

ATTEST:                    ATLANTIC CAPITAL BANCSHARES, INC.

/s/ Patrick T. Oakes                By: /s/ Walter M. Deriso, Jr.                

Secretary                    Name:    Walter M. Deriso, Jr.

Title:    Chairman

(CORPORATE SEAL)

ATTEST:                    ATLANTIC CAPITAL BANK

/s/ Patrick T. Oakes                By: /s/ Walter M. Deriso, Jr.                

Secretary                    Name:    Walter M. Deriso, Jr.

Title:    Chairman

(BANK SEAL)

EXECUTIVE

/s/ Anita M. Hill            /s/ Douglas L. Williams                

Witness                    DOUGLAS L. WILLIAMS

EXHIBIT A

RELEASE

In exchange for certain termination payments, benefits and promises to __________________________ which _______________________ (“Executive”) would not otherwise be entitled, Executive, knowingly and voluntarily releases and Atlantic Capital Bank and Atlantic Capital Bancshares, Inc., their subsidiaries, affiliates or related corporations, together with their officers, directors, agents, employees and representatives (collectively, the “Employer”), of and from any and all claims, demands, obligations, liabilities and causes of action, of whatsoever kind in law or equity, whether known or unknown, which Executive has or ever had against the Employer on or before the date of the execution of this Release, including but not limited to claims in common law, whether in contract or in tort, and causes of action under the Age Discrimination in Employment Act, 29 U.S.C. Sections 621 et seq., Title VII of the Civil Rights Act of 1964, 42 U.S.C. Sections 2000e et seq., the Employee Retirement Income Security Act, 29 U.S.C. Sections 1001 et seq., the Americans with Disabilities Act, 29 U.S.C. Section 12101 et seq., and all other federal, state or local laws, ordinances or regulations, for any losses, injuries or damages (including compensatory or punitive damages), attorney’s fees and costs arising out of employment or termination from employment with the Employer. Notwithstanding the foregoing, Executive does not waive or release the Employer from any claims, demands, obligations, liabilities or causes of action that may hereafter arise as the result of the breach by the Employer of its obligations under the Employment Agreement dated as of _____________, 20__ by and among the Atlantic Capital Bancshares, Inc., Atlantic Capital Bank and Executive (the “Employment Agreement”).

Executive acknowledges that he has had a period of twenty-one (21) days from the date of receipt of this Release to consider it. Executive acknowledges that he has been given the opportunity to consult an attorney prior to executing this Release. This Release shall not become effective or enforceable until seven (7) days following its execution by Executive. Prior to the expiration of the seven (7) day period, Executive may revoke Executive’s consent to this Release.

Executive acknowledges by executing this Release that Executive has returned to the Employer all Employer property in Executive’s possession.

Executive acknowledges that the terms of this Release and Executive’s separation of employment are confidential and, unless otherwise required by law or for the purposes of enforcing the Release or when needed to consult with Executive’s immediate family or tax or legal advisors, neither Executive nor Executive’s agents shall divulge, publish or publicize any such confidential information to any third parties or the media, or to any current or former employee, customer or client of the Employer or its businesses or any of its affiliates.

Notwithstanding anything in this Release to the contrary, (a) nothing in this Release, the Employment Agreement or other agreement prohibits the Executive from reporting possible violations of law or regulation to any governmental agency or entity, including but not limited to the Department of Justice, the Securities and Exchange Commission, the Congress and any agency Inspector General (the “Government Agencies”), or communicating with Government Agencies or otherwise participating in any investigation or proceedings that may be conducted by Government Agencies, including providing documents or other information; (b) the Executive does not need the prior authorization of the Employer to take any action described in (a), and the Executive is not required to notify the Employer that he or she has taken any action described in (a); and (c) neither this Release nor the Employment Agreement limits the Executive’s right to receive an award for providing information relating to a possible securities law violation to the Securities and Exchange Commission. Further, notwithstanding the foregoing, the Executive will not be held criminally or civilly liable under any federal, state or local trade secret law for the disclosure of a trade secret that (x) is made (i) in confidence to a federal, state or local official, either directly or indirectly, or to an attorney; and (ii) solely for the purpose of reporting or investigating a suspected violation or law; or (y) is made in a compliant or other document filed in a lawsuit or other proceeding, if such filing is made under seal. Additionally, an individual suing an employer for retaliation based on the reporting of a suspected violation of law may disclose a trade secret to his or her attorney and use the trade secret information in the court proceeding, so long as any document containing the trade secret is filed under seal and the individual does not disclose the trade secret except pursuant to court order.

EXECUTIVE ACKNOWLEDGES HE FULLY UNDERSTANDS THE CONTENTS OF THIS RELEASE AND EXECUTES IT FREELY AND VOLUNTARILY, WITHOUT DURESS, COERCION OR UNDUE INFLUENCE.

Signed:    Date:

Executive

EX-10.2

Exhibit 10.2

AMENDMENT NO. 1 TO EMPLOYMENT AGREEMENT

THIS AMENDMENT NO. 1 TO EMPLOYMENT AGREEMENT (the “Amendment”) is made and entered into effective July 20, 2017 (the “Effective Date”), by and among ATLANTIC CAPITAL BANCSHARES, INC., at Georgia corporation (the “Holding Company”); ATLANTIC CAPITAL BANK, a wholly-owned Georgia banking subsidiary of the Holding Company (the “Bank”) (collectively, the “Employers”); and D. MICHAEL KRAMER (“Executive”).

WITNESSETH:

WHEREAS, the Employers and the Executive hereby agree to amend that Employment Agreement among the Employers and the Executive dated June 5, 2015 (the “Employment Agreement”) pursuant Section 17(a) thereof;

NOW, THEREFORE, for and in consideration of the Amendment’s mutual covenants, and other good and valuable consideration, the receipt and legal sufficiency of which are hereby acknowledged, the parties agree as follows:

1.Section 7(b) of the Employment Agreement is hereby amended to add a new subpart (iv) in the fourth to last sentence of that section, which shall read as follows:

“(iv) any Protected Rights (as defined herein);”

The remaining subpart of that sentence shall be renumbered to “v.”

2.Section 7(c) of the Employment Agreement is hereby amended to add a new subpart (iv) in the fourth to last sentence of that section, which shall read as follows:

“(iv) any Protected Rights;”

The remaining subpart of that sentence shall be renumbered to “v.”

3.Section 9 of the Employment Agreement is hereby amended to add a new subsection (h), which shall read as follows:

“(h)    Notwithstanding anything in this Agreement to the contrary, (a) nothing in this Agreement, including but not limited to the release, or other agreement prohibits the Executive from reporting possible violations of law or regulation to any governmental agency or entity, including but not limited to the Department of Justice, the Securities and Exchange Commission, the Congress and any agency Inspector General (the “Government Agencies”), or communicating with Government Agencies or otherwise participating in any investigation or proceedings that may be conducted by Government Agencies, including providing documents or other information; (b) the Executive does not need the prior authorization of the Employers to take any action described in (a), and the Executive is not required to notify the Employers that he or she has taken any action described in (a); and (c) neither this Agreement nor the release limits the Executive’s right to receive an award for providing information relating to a possible securities law violation to the Securities and Exchange Commission. Further, notwithstanding the foregoing, the Executive will not be held criminally or civilly liable under any federal, state or local trade secret law for the disclosure of a trade secret that (x) is made (i) in confidence to a federal, state or local official, either directly or indirectly, or to an attorney; and (ii) solely for the purpose of reporting or investigating a suspected violation or law; or (y) is made in a compliant or other document filed in a lawsuit or other proceeding, if such filing is made under seal. Additionally, an individual suing an employer for retaliation based on the reporting of a suspected violation of law may disclose a trade secret to his or her attorney and use the trade secret information in the court proceeding, so long as any document containing the trade secret is filed under seal and the individual does not disclose the trade secret except pursuant to court order. The rights described in this subsection (h) are referred to in this Agreement as the ‘Protected Rights.’”

4.Exhibit A (the Release) of the Employment Agreement is hereby amended by deleting the current Exhibit A and replacing it with the form of Release attached to this Amendment as Exhibit A.

[Remainder of Page Left Blank]

IN WITNESS WHEREOF, the Holding Company and the Bank have caused this Amendment to be executed and their seals to be affixed hereunto by their duly authorized officers, and Executive has signed this Amendment, as of the Effective Date set forth above.

ATTEST: /s/ Patrick T. Oakes_____________________ Secretary (CORPORATE SEAL) ATTEST: /s/ Patrick T. Oakes_____________________ Secretary (BANK SEAL) /s/ Annette Rollins_____________________ Witness ATLANTIC CAPITAL BANCSHARES, INC. By:/s/ Douglas L. Williams______________ Name: Douglas L. Williams Title: Chief Executive Officer ATLANTIC CAPITAL BANK By:/s/ Douglas L. Williams______________ Name: Douglas L. Williams Title: Chief Executive Officer EXECUTIVE /s/ D. Michael Kramer___________________ D. Michael Kramer

EXHIBIT A

RELEASE

In exchange for certain termination payments, benefits and promises _________________ to ______________ which (“Executive”) would not otherwise be entitled, Executive, knowingly and voluntarily releases and Atlantic Capital Bank and Atlantic Capital Bancshares, Inc., their subsidiaries, affiliates or related corporations, together with their officers, directors, agents, employees and representatives (collectively, the “Employer”), of and from any and all claims, demands, obligations, liabilities and causes of action, of whatsoever kind in law or equity, whether known or unknown, which Executive has or ever had against the Employer on or before the date of the execution of this Release, including but not limited to claims in common law, whether in contract or in tort, and causes of action under the Age Discrimination in Employment Act, 29 U.S.C. Sections 621 et seq., Title VII of the Civil Rights Act of 1964, 42 U.S.C. Sections 2000e et seq., the Employee Retirement Income Security Act, 29 U.S.C. Sections 1001 et seq., the Americans with Disabilities Act, 29 U.S.C. Section 12101 et seq., and all other federal, state or local laws, ordinances or regulations, for any losses, injuries or damages (including compensatory or punitive damages), attorney’s fees and costs arising out of employment or termination from employment with the Employer. Notwithstanding the foregoing, Executive does not waive or release the Employer from any claims, demands, obligations, liabilities or causes of action that may hereafter arise as the result of the breach by the Employer of its obligations under the Employment Agreement dated as of ________________, 20 by and among the Atlantic Capital Bancshares, Inc., Atlantic Capital Bank and Executive (the “Employment Agreement”).

Executive acknowledges that he has had a period of twenty-one (21) days from the date of receipt of this Release to consider it. Executive acknowledges that he has been given the opportunity to consult an attorney prior to executing this Release. This Release shall not become effective or enforceable until seven (7) days following its execution by Executive. Prior to the expiration of the seven (7) day period, Executive may revoke Executive’s consent to this Release.

Executive acknowledges by executing this Release that Executive has returned to the Employer all Employer property in Executive’s possession.

Executive acknowledges that the terms of this Release and Executive’s separation of employment are confidential and, unless otherwise required by law or for the purposes of enforcing the Release or when needed to consult with Executive’s immediate family or tax or legal advisors, neither Executive nor Executive’s agents shall divulge, publish or publicize any such confidential information to any third parties or the media, or to any current or former employee, customer or client of the Employer or its businesses or any of its affiliates.

Notwithstanding anything in this Release to the contrary, (a) nothing in this Release, the Employment Agreement or other agreement prohibits the Executive from reporting possible violations of law or regulation to any governmental agency or entity, including but not limited to the Department of Justice, the Securities and Exchange Commission, the Congress and any agency Inspector General (the “Government Agencies”), or communicating with Government Agencies or otherwise participating in any investigation or proceedings that may be conducted by Government Agencies, including providing documents or other information; (b) the Executive does not need the prior authorization of the Employer to take any action described in (a), and the Executive is not required to notify the Employer that he or she has taken any action described in (a); and (c) neither this Release nor the Employment Agreement limits the Executive’s right to receive an award for providing information relating to a possible securities law violation to the Securities and Exchange Commission. Further, notwithstanding the foregoing, the Executive will not be held criminally or civilly liable under any federal, state or local trade secret law for the disclosure of a trade secret that (x) is made (i) in confidence to a federal, state or local official, either directly or indirectly, or to an attorney; and (ii) solely for the purpose of reporting or investigating a suspected violation or law; or (y) is made in a compliant or other document filed in a lawsuit or other proceeding, if such filing is made under seal. Additionally, an individual suing an employer for retaliation based on the reporting of a suspected violation of law may disclose a trade secret to his or her attorney and use the trade secret information in the court proceeding, so long as any document containing the trade secret is filed under seal and the individual does not disclose the trade secret except pursuant to court order.

EXECUTIVE ACKNOWLEDGES HE FULLY UNDERSTANDS THE CONTENTS OF THIS RELEASE AND EXECUTES IT FREELY AND VOLUNTARILY, WITHOUT DURESS, COERCION OR UNDUE INFLUENCE.

Signed:________________________________    Date:

Executive

EX-10.4

Exhibit 10.4

ATLANTIC CAPITAL BANCSHARES, INC.

CHANGE IN CONTROL PLAN

§ 1.

PURPOSE

The purpose of this Plan is to provide an appropriate measure of protection and security for a Participant in the event that a Change in Control is determined to be in the best interests of the Corporation's shareholders.

§ 2.

ADMINISTRATON

This Plan shall be administered by the Compensation Committee, which shall have the power and discretion to interpret this Plan and to take such other action in the operation and administration of this Plan as the Compensation Committee deems necessary or appropriate under the circumstances.

§ 3.

PARTICIPATION

3.1.    Senior Officers. The Compensation Committee shall select the individuals who shall (subject to § 3.2) participate in this Plan, but the Compensation Committee shall only select individuals who at the time of their selection are senior officers of the Corporation or the Bank.

3.2.    Termination of Participation. An individual's status as a Participant will (subject to § 5.5) terminate only upon his or her Separation from Service outside the Protection Period even if his or her status as a senior officer of the Corporation or the Bank ends before the date he or she has a Separation from Service.

§ 4.

DEFINITIONS

Bank: Means Atlantic Capital Bank and any successor to Atlantic Capital Bank.

Base Salary: Means a Participant's base salary as properly paid or accrued for the 12 month period which ends on the date of his or her Separation from Service.

Beneficiary: Means the person so designated by the Participant on the form provided by the Corporation for this purpose or, if no designation is made or no one so designated survives the Participant, his or her estate.

Board of Directors: Means the Board of Directors of the Corporation or, where applicable, the Board of Directors of the Bank.

Cash Severance Package: Means

(a)    an amount equal to 1.5 times the sum of (1) the Participant's Base Salary and (2) his or her target bonus in effect for the calendar year in which he or she has a Separation from Service; plus

(b)    an amount equal to the Participant's Base Salary times his or her highest annual incentive target bonus percentage in effect for the calendar year in which the Participant has a Separation from Service, prorated based on the number of days in such calendar year before the date of his or her Separation from Service.

Cause: Means any of the following:

(a)    the Participant has a Forfeiture Event which harms the Corporation or the Bank in any material respect or has violated in any material respect any restrictive covenants agreed to by the Participant in connection with any other matter related to the Corporation or the Bank; or

(b)    the Participant has violated in any willful and material respect the code of ethics and business conduct for officers and employees of the Corporation or the Bank, whichever is applicable, provided a copy of such code had been furnished to the Participant at the time such code first becomes effective and such code after a Change in Control is consistent in all material respects with the code of ethics and business conduct for the officers and employees of the Corporation or the Bank, whichever is applicable, as in effect immediately before the Change in Control; or

(c)    the Participant has refused to follow in any material respect any reasonable and proper and lawful directive from the Board of Directors of the Corporation or the Bank, whichever is applicable, the CEO or the individual to whom the Participant directly reports; or

2

(d)    the Participant has been convicted of a felony, which conviction standing alone is reasonably likely to have a material and adverse effect on the business or reputation of the Corporation or the Bank; provided, however,

no Separation from Service for a Participant shall be for "Cause" unless (e) there shall have been delivered to the Participant within thirty (30) normal business days of the Corporation a written notice which sets forth the basis for such alleged "Cause" in reasonable detail, (f) the Participant after the delivery of such notice shall have had thirty (30) normal business days of the Corporation to address and cure any act or omission which is set forth in such notice as the basis for such alleged "Cause" and (g) the Participant fails to cure such act or omission before the end of such thirty (30) day period.

CEO: Means the individual who is the Chief Executive Officer of the Corporation.

Change in Control: Means any one of the following:

(a)    a change in any one year period in the members of the Corporation's Board of Directors or the Bank's Board of Directors such that the members of the Corporation's Board of Directors or the Bank's Board of Directors, whichever is applicable, at the beginning of such one year period no longer constitute a majority of the members of the applicable board at the end of such period unless the nomination for election for each new member of the applicable board was approved by at least two thirds (2/3s) of the individuals who were the members of the applicable board at the beginning of such one year period; or

(b)    any "person" (as that term is used in section 13(d)(3) or section 14(d)(2) the Securities Exchange Act of 1934, as amended) in one transaction or in a series of related transactions becomes the beneficial owner (as defined in Rule 13d-3 under the Securities Exchange Act of 1934, as amended ) of 40% or more the voting power of the Corporation's common stock or the Bank's common stock other than (i) an acquisition directly by or from the Corporation or the Bank, (ii) an initial public offering of the Corporation's common stock or the Bank's common stock, (iii) an acquisition by an employee benefit plan sponsored by the Corporation or the Bank or (iv) any transaction described in subsection (c)(i) through (c)(iii) of this definition of a Change in Control; or

(c)    the consummation of a merger or other corporate transaction involving the Corporation or the Bank unless (i) immediately after such consummation at least 50% of the voting power of the stock of the surviving corporation is held by the persons who were the Corporation's shareholders or the Bank's shareholders, whichever is applicable, immediately before such consummation in substantially the same proportion that they held the voting power of the stock of the Corporation or the Bank, whichever is applicable, immediately before such consummation, (ii) no person holds more than 20% of the voting power of the surviving corporation's stock (other than

3

a person who immediately before such consummation held more than 20% of the voting power of the Corporation's stock or the Bank's stock, whichever is applicable) and (iii) at least 50% of the directors of the surviving corporation were members of the Corporation's Board of Directors or the Bank's Board of Directors, whichever is applicable, immediately before such consummation; or

(d)    the shareholders of the Corporation or the Bank approve a sale of substantially all of the assets of the Corporation or the Bank or a liquidation of the Corporation or the Bank.

Code: Means the Internal Revenue Code of 1986, as amended.

COBRA Severance Package: Means the reimbursement by the Corporation of the COBRA coverage premiums, if any, paid by the Participant for his or her self-only COBRA coverage each month, which reimbursement shall be made for the 18 month period which starts on the date of the Participant's Separation from Service or until the date the Participant is first eligible to receive at least self-only healthcare coverage from a new employer, whichever comes first.

Compensation Committee: Means the Compensation Committee of the Corporation's Board of Directors or any successor to such committee.

Corporation: Means Atlantic Capital Bancshares, Inc. and any successor to such corporation or, if there is a Change in Control of Atlantic Capital Bancshares, Inc. or any successor to such corporation as a result of the consummation of a merger or other corporate transaction, the corporation which survives such merger or other corporate transaction.    

Forfeiture Event: Means an event described in Exhibit B as a Forfeiture Event.

Golden Parachute Tax: Means the 20% additional tax under Code § 280G and § 4999 on the payments made to an individual on account of a change in control.

Good Reason: Means any of the following:

(a)    any diminution in the Participant's position, duties or responsibilities, including any diminution in the reporting relationship with respect to who the Participant directly reports to (unless the change is from reporting directly to the CEO to reporting directly to the next most senior executive officer of the Corporation and such officer reports directly to the CEO) or with respect to the officers or offices or business functions which report directly to the Participant; or

(b)    any reduction in the Participant's base salary or annual bonus opportunity other than as part of a pro-rata reduction effected for the CEO and all other senior officers of the Corporation; or

4

(c)    any change in the Participant's primary work site if that site is outside a 25 mile radius from his or her primary work site on the date of the Change in Control unless his or her new primary work site is closer to his or her primary residence; or

(d)    the successor to the Corporation or the Bank fails to expressly adopt this Plan in the transaction documents related to a merger or other corporate transaction which constitutes a Change in Control; provided, however,

no Separation from Service shall be for "Good Reason" unless (e) there shall have been delivered to the Corporation within sixty (60) normal business days of the Corporation a written notice which sets forth the basis for such alleged "Good Reason" in reasonable detail, (f) the Corporation after the delivery of such notice shall have had thirty (30) normal business days of the Corporation to address and cure any act or omission set forth in such notice as the basis for such alleged "Good Reason" and (g) the Corporation fails to cure such act or omission before the end of such thirty (30) day period.

Plan: Means this Atlantic Capital Bancshares, Inc. Change in Control Plan, as amended from time to time in accordance with § 6.

Protection Period: Means the period which begins on the date which is 90 days before and ends on the date which 540 days after a Change in Control.

Release: Means a general release which is the same in all material respects as the form of the release attached as Exhibit A to this Plan except that the time period to consider whether to sign the Release and the time period for revoking a Release which has been signed may be reduced to the extent consistent with the applicable requirements, if any, of the Older Workers Benefit Protection Act.

Separation from Service: Means a termination of employment which constitutes a permissible payment event under § 409A of the Code.

§ 5

Payment of Severance Package

5.1    Cash Severance.

(a)    Separation from Service. If during the Protection Period a Participant has a Separation from Service by reason of a termination of his or her employment without Cause or a resignation for Good Reason, the Corporation shall (subject to § 5.4 and § 5.5) pay the Cash Severance Package in accordance with this § 5.1.

(b)    Timing. The payments described in § 5.1(a) shall (subject to § 5.4 and § 5.5) be made by the Corporation in equal or substantially equal installments on each regular pay day for the

5

Corporation's officers in the 12 month period which starts as of the date the Participant has a Separation from Service.

(c)    Beneficiary. If the Participant dies before the Cash Severance Package has been paid in full, any unpaid part of the Cash Severance Package will continue to be paid to his or her Beneficiary at the same time and in the same amounts as the payments would have been made to the Participant.

5.2    COBRA Severance Package.

(a)    Reimbursement. If during the Protection Period a Participant has a Separation from Service by reason of a termination of his or her employment without Cause or a resignation for Good Reason, the Corporation shall (subject to § 5.4 and § 5.5) make the reimbursements called for under the COBRA Severance Package in accordance with the Corporation's standard expense reimbursement policy for executives; provided, however, for purposes of complying with § 409A of the Code, (1) a claim for reimbursement shall be paid by the Corporation within thirty (30) days following the date that the Corporation receives the properly completed claim for reimbursement if, and only if, the Corporation receives such claim before December 1 of the calendar year immediately following the calendar year in which the COBRA premium is paid by the Participant, (2) in no event will the reimbursement for the COBRA premiums for one calendar affect the reimbursement of COBRA premiums for any other calendar year and (3) in no event will a Participant's right to reimbursement be subject to liquidation or exchange for another benefit.

(b)    Death. The reimbursements called for in this § 5.2 will stop with the reimbursement of the last COBRA premium paid by the Participant before his or her death.

5.3    Outstanding Equity Grants and LTIP Awards.

(a)    Separation from Service. If during the Protection Period a Participant has a Separation from Service by reason of a termination of his or her employment without Cause or a resignation for Good Reason, then (1) the Participant's right to exercise any and all then outstanding stock option, warrant, restricted stock and other equity grants made to the Participant by the Corporation and the Bank shall (subject to § 5.4 and § 5.5) vest 100% at his or her Separation from Service and (2) the Participant's right to receive any then outstanding long term incentive plan awards shall (subject to § 5.4 and § 5.5) vest 100% and shall be paid at "target" in cash when, and if, permissible under § 5.4.

(b)    Death.     If a Participant dies on or after his or her Separation from Service while any stock option, restricted stock and other equity grants described in § 5.3(a) are outstanding, the Participant's vested interest in such grants shall pass to such person or persons as provided in the respective grants. If a Participant dies on or after his or her Separation from Service and before his or her long term

6

incentive plan awards have been paid pursuant to § 5.3, any payment then due pursuant to § 5.3 shall be made to his or her Beneficiary.

5.4    Release.

(a)    Delivery. The Corporation shall have the right to require a Participant to timely sign a Release as a condition to the receipt of any payments or benefits under this Plan. If the Corporation desires to exercise such right, the Corporation shall deliver the Release to the Participant no later than seven (7) days after the date of his or her Separation from Service. If the Corporation fails to deliver the Release to the Participant before the end of such seven (7) day period, the Corporation shall be deemed to have irrevocably waived its right to require a Release.

(b)    Deadlines. The Release shall set forth the number of days which the Participant shall have to consider whether to sign and return the Release and the number of days which the Participant shall have to revoke a Release which he or she has signed. If the Participant fails to sign and return the Release to the Corporation before the end of the period he or she has to consider signing the Release or if the Participant revokes the Release before the end of period he or she has to revoke the Release, the Participant shall forfeit any right to any payments or benefits under this Plan.

(c)    Payments and Benefits. If a Release becomes irrevocable, the payments and benefits called for under this Plan shall be paid or made available no later than the end of the sixty two (62) day period which starts of the date of the Participant's Separation from Service and, to the extent permissible under § 409A of the Code, may be paid or made available before the end of such period. When payments are first to be made under this § 5.4(c) or benefits are first to be made available under this § 5.4(c), any payments or benefits which had been withheld pending the Release becoming irrevocable shall be included as part of the first payment or shall be made available when benefits are first made available.

(d)    Suspension. Any and all action with respect to payments and benefits under this Plan shall be suspended pending a forfeiture under § 5.4(b) or payments being made or benefits being made available under § 5.4(c).

5.5    Forfeiture Event. If a Participant has a Forfeiture Event which harms the Corporation or the Bank in any material respect, the Participant's participation in this Plan will immediately terminate as of the date of such Forfeiture Event, and he or she as of the date of such Forfeiture Event will forfeit any right to any further payments or benefits under this Plan. All payments made and benefits provided under this Plan shall be made or provided subject to the condition that there has been no such Forfeiture Event, a Participant by accepting any payments or benefits under this Plan shall be deemed to represent to the Corporation that there has been no such Forfeiture Event and the Corporation shall have the right to recoup any payments and benefits provided under this Plan after the date of such a Forfeiture Event.

7

5.6.    Golden Parachute Tax. If the Corporation's accounting firm determines that the Cash Severance Package, the COBRA Severance Package, the benefits under § 5.3 and any other payments or benefits will if paid in full trigger the Golden Parachute Tax, the Compensation Committee will reduce the Cash Severance Package, the COBRA Severance Package or the benefits under § 5.3, or some combination of the foregoing, to the extent required to eliminate the tax or, if the Participant would after paying the Golden Parachute Tax be financially better off being paid the full Cash Severance Package, the full COBRA Severance Package and the full benefits under § 5.3, all of the foregoing will be paid in full. Further, if a Participant's Separation from Service coincides with the Change in Control, the Corporation pursuant to § 280G of the Code will undertake all reasonable and proper steps to secure the approval of the Corporation's shareholder for the payment of the full Cash Severance Package, the full COBRA Severance Package and the full benefits under § 5.3 as well as any other payments and benefits then payable to the Participant if such approval would eliminate any Golden Parachute Tax risk for the Participant.    

§ 6.

Amendment or Termination

This Plan may be amended or terminated by action of the Corporation's Board of Directors, provided that at least 75% of the then Participants (rounded up to the next whole number of Participants) consent in writing to the adoption of the amendment or the termination and the Corporation provides certified copy of such consent by each such Participant to all Participants.

§ 7

Miscellaneous

7.1    Disputes. Any legal action based on, arising out of, or relating to this Plan shall be brought in the federal or state courts in or for Fulton County, Georgia. The Corporation and the Bank each consent, and waive any objections, to personal jurisdiction and venue in these courts, and each Participant by virtue of his or her participation in this Plan shall be deemed to consent, and waive any objections, to personal jurisdiction and venue in these courts. If the Participant is the prevailing party in any such action, the Participant shall be entitled to recover from the Corporation or from the Bank his or her reasonable attorneys' fees and all other reasonable costs and expenses incurred by the Participant in connection with such action.

7.2    No Assignment. Neither a Participant nor a Beneficiary shall have the right to assign or otherwise transfer to any person any rights whatsoever which he or she might have under this Plan.

8

7.3    Applicable Law. This Plan shall be construed in accordance with and be governed by the laws of the State of Georgia other than any law which would require the application of the laws of another state or jurisdiction.

7.4    Headings. The headings for the provisions of this Plan are set forth for convenience of reference and shall not be used to affect in any way the meaning or interpretation of any provision of this Plan.

7.5    General and Unsecured Creditor Status. The status of a Participant's claim against the Corporation for a benefit under this Plan shall be the same as the status of a claim by a general and unsecured creditor of the Corporation, and any benefits payable under this Plan shall be paid solely from the Corporation's general assets.

7.6    Tax Withholding. The Corporation shall have the right to make such tax withholding from the benefits paid under this Plan as required under applicable law.

ATLANTIC CAPITAL BANCSHARES, INC.

BY: /s/ Douglas L. Williams______________

TITLE: Chief Executive Officer___________

DATE: July 10, 2014____________________

9

EXHIBIT A

GENERAL RELEASE

I, ________________________, as an express condition of receiving the Cash Severance Package and other valuable benefits under the Change in Control Plan (the “CIC Plan”) of Atlantic Capital Bancshares, Inc. (the “Corporation”), hereby freely and voluntarily enter into this General Release. Unless otherwise indicated below, all capitalized terms in this General Release shall have the meanings set forth in the CIC Plan.

1.I understand that any payments or benefits paid or granted to me under the CIC Plan, including the Cash Severance Package, constitute consideration for signing and not revoking this General Release and are not salary, wages, benefits, or other consideration to which I was otherwise entitled. I understand and agree that I will not receive any of these payments or benefits, including the Cash Severance Package, unless I sign this General Release and do not revoke it within the time periods stated below.

2.I knowingly and voluntarily, on behalf of myself and my spouse, heirs, executors, administrators, and assigns (collectively with me the “Releasors”), release and forever discharge the Corporation, all of its subsidiaries and affiliates, including Atlantic Capital Bank (the “Bank”), and all of their respective current and former officers, directors, members, employees, insurers, representatives, agents, and assigns (collectively with the Corporation and the Bank the “Released Parties”) from any and all claims, suits, controversies, actions, causes of action, cross-claims, counter-claims, demands, debts, compensatory damages, liquidated damages, punitive or exemplary damages, other damages, claims for costs and attorneys’ fees, or liabilities of any kind or nature whatsoever, whether in law and in equity, whether KNOWN OR UNKNOWN, suspected or unsuspected, from the beginning of time through the effective date of this General Release, which I or any of the other Releasors have or may have against the Corporation or the Bank or any of the other Released Parties, including arising out of, based on, or in connection with my employment with the Corporation or the Bank or the termination of such employment, including any allegation, claim or violation arising under: Title VII of the Civil Rights Act of 1964, as amended (“Title VII”); the Civil Rights Act of 1991, as amended (the “1991 Act”); the Age Discrimination in Employment Act of 1967, as amended (including the Older Workers Benefit Protection Act) (the “ADEA”); the Equal Pay Act of 1963, as amended (the “EPA”); the Americans with Disabilities Act of 1990, as amended (the “ADA”); the Family and Medical Leave Act of 1993 (the “FMLA”); the Worker Adjustment Retraining and Notification Act; the Employee Retirement Income Security Act of 1974; any applicable Executive Order Programs; the Fair Labor Standards Act; or their state or local counterparts; or under any other federal, state or local civil or human rights law, or under any other local, state, or federal law, regulation or ordinance; or under any public policy, contract or tort, or under common law; or arising under any policies, practices or procedures of the Corporation or the Bank, or any claim for wrongful discharge, breach of contract, infliction of emotional distress, defamation; or any claim for costs, fees, or other expenses, including attorneys’ fees incurred in these matters (collectively the “Claims” and individually a “Claim”).

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3.I represent and warrant that I have not sold, assigned, or otherwise transferred any of the Claims to any other person or entity.

4.I understand and acknowledge that this General Release does not waive or release any rights or claims that I may have under the ADEA that arise after the date I sign this General Release.

5.I further understand and acknowledge that I am not waiving any right that cannot be waived under applicable law, including the right to file a charge, complaint, or claim with, or to participate in any investigation or proceeding by, any governmental agency, including the Equal Employment Opportunity Commission; provided, however, that I disclaim any right to share or participate in any monetary award or other individual relief resulting from any such charge, complaint, claim, investigation, or proceeding.

6.In signing this General Release, I acknowledge and intend that it shall be effective as a bar to each and every one of the Claims. I expressly consent that this General Release shall be given full force and effect according to each and all of its express terms and provisions, including those relating to unknown and unsuspected Claims (notwithstanding any state statute that expressly limits the effectiveness of a general release of unknown, unsuspected and unanticipated Claims), if any, as well as those relating to any other Claims. I acknowledge and agree that this waiver is an essential and material term of this General Release and that without such waiver the Corporation would not have agreed to provide the Cash Severance Package or other benefits under the CIC Plan. I further agree that in the event I bring a Claim against the Company or any of the other Released Parties, or in the event I seek to recover against the Company or any of the other Released Parties for any Claim brought by a governmental agency on my behalf, this General Release shall serve as a complete defense to such Claims to the maximum extent permitted by applicable law. I further represent and warrant that I am not aware of any pending legal action or administrative proceeding in which any of the Claims have been alleged or threatened.

7.I agree that neither this General Release nor the availability of the Cash Severance Package or other benefits under the CIC Plan shall be deemed or construed at any time to be an admission by the Corporation or the Bank or any of the other Released Parties of any unlawful or improper conduct or wrongdoing of any kind or nature whatsoever.

8.Notwithstanding anything in this General Release to the contrary, this General Release shall not relinquish, diminish, or in any way affect any rights or claims arising out of any breach by the Corporation of the CIC Plan after the effective date of this General Release.

9.Whenever possible, each provision of this General Release shall be interpreted in such manner as to be effective and valid under applicable law, but if any provision of this General Release is held to be invalid, illegal or unenforceable in any respect under any applicable law or rule in any jurisdiction, such invalidity, illegality or unenforceability shall not affect any other provision or any other jurisdiction, but this General Release shall be reformed, construed and enforced in such jurisdiction as if such invalid, illegal or unenforceable provision had never been contained herein.

10.This General Release shall be governed by the laws of the State of Georgia except to the extent that its choice of laws rules would call for the application of the laws of another state.

2 of 3

BY SIGNING THIS GENERAL RELEASE, I REPRESENT, ACKNOWLEDGE, AND AGREE THAT:

(a)I HAVE READ IT CAREFULLY;

(b)I UNDERSTAND ALL OF ITS TERMS AND KNOW THAT I AM GIVING UP IMPORTANT RIGHTS, INCLUDING BUT NOT LIMITED TO, RIGHTS UNDER TITLE VII, THE 1991 ACT, THE ADEA, THE ADA, AND THE FMLA;

(c)I HAVE BEEN OR AM HEREBY ADVISED TO CONSULT WITH AN ATTORNEY BEFORE SIGNING IT AND I HAVE DONE SO OR, AFTER CAREFUL READING AND CONSIDERATION, HAVE CHOSEN NOT TO DO SO OF MY OWN VOLITION;

(d)I HAVE BEEN GIVEN AT LEAST 45 DAYS FROM MY RECEIPT OF THIS GENERAL RELEASE TO CONSIDER IT BUT I AM FREE TO ELECT TO SIGN IT SOONER;

(e) ANY CHANGES TO THIS GENERAL RELEASE SINCE I INITIALLY RECEIVED IT ARE NOT MATERIAL OR WERE MADE AT MY REQUEST AND WILL THEREFORE NOT RESTART THE REQUIRED 45 DAY CONSIDERATION PERIOD;

(f)I HAVE 7 DAYS AFTER I SIGN THIS GENERAL RELEASE TO REVOKE IT IN WRITING (HAND DELIVERED, FAXED, OR POSTMARKED TO _________________), AND THIS GENERAL RELEASE SHALL NOT BECOME EFFECTIVE OR ENFORCEABLE UNTIL THE REVOCATION PERIOD HAS EXPIRED WITHOUT ME REVOKING IT;

(g)I HAVE SIGNED THIS GENERAL RELEASE KNOWINGLY AND VOLUNTARILY; AND

(h)THE PROVISIONS OF THIS GENERAL RELEASE MAY NOT BE AMENDED, WAIVED, CHANGED, OR MODIFIED EXCEPT IN WRITING SIGNED BY AN AUTHORIZED REPRESENTATIVE OF THE CORPORATION AND ME.

DATE:    

3 of 3

EX-31.1

EXHIBIT 31.1

CERTIFICATION PURSUANT TO RULE 13a-14(a) OR 15d-14(a) OF THE EXCHANGE ACT,

AS ADOPTED PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

I, Douglas L. Williams, certify that:

1. I have reviewed this quarterly report on Form 10-Q of Atlantic Capital Bancshares, Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f) for the registrant and have:

a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: August 8, 2017

/s/ Douglas L. Williams

Douglas L. Williams

Chief Executive Officer

EX-31.2

EXHIBIT 31.2

CERTIFICATION PURSUANT TO RULE 13a-14(a) OR 15d-14(a) OF THE EXCHANGE ACT,

AS ADOPTEDPURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

I, Patrick T. Oakes, certify that:

1. I have reviewed this quarterly report on Form 10-Q of Atlantic Capital Bancshares, Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f) for the registrant and have:

a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: August 8, 2017

/s/ Patrick T. Oakes

Patrick T. Oakes

Executive Vice President, Chief Financial Officer, and Secretary

EX-32.1

EXHIBIT 32.1

CERTIFICATION PURSUANT TO 18 U.S.C. SECTION 1350, AS ADOPTED PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

I, Douglas L. Williams, Chief Executive Officer of Atlantic Capital Bancshares, Inc. (the “Company”), certify pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, 18 U.S.C. Section 1350, that, to my knowledge:

(1) the Quarterly Report on Form 10-Q of the Company for the fiscal quarter ended June 30, 2017 (the “Report”), as filed with the Securities and Exchange Commission, fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and

(2) the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company on the dates and for the periods presented therein.

August 8, 2017	/s/ Douglas L. Williams
	Douglas L. Williams
	Chief Executive Officer

EX-32.2

EXHIBIT 32.2

CERTIFICATION PURSUANT TO 18 U.S.C. SECTION 1350, AS ADOPTED PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

I, Patrick T. Oakes, Chief Financial Officer of Atlantic Capital Bancshares, Inc. (the “Company”), certify pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, 18 U.S.C. Section 1350, that, to my knowledge:

(1) the Quarterly Report on Form 10-Q of the Company for the fiscal quarter ended June 30, 2017 (the “Report”), as filed with the Securities and Exchange Commission, fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and

(2) the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company on the dates and for the periods presented therein.

August 8, 2017	/s/ Patrick T. Oakes
	Patrick T. Oakes
	Executive Vice President, Chief Financial Officer, and Secretary

XML

Document And Entity Information - shares	6 Months Ended
	Jun. 30, 2017	Aug. 01, 2017
Document And Entity Information [Abstract]
Entity Registrant Name	ATLANTIC CAPITAL BANCSHARES, INC.
Entity Central Index Key	0001461755
Current Fiscal Year End Date	--12-31
Entity Filer Category	Accelerated Filer
Document Type	10-Q
Document Period End Date	Jun. 30, 2017
Document Fiscal Year Focus	2017
Document Fiscal Period Focus	Q2
Amendment Flag	false
Entity Common Stock, Shares Outstanding		25,661,631

XML

Consolidated Balance Sheets - USD ($) $ in Thousands	Jun. 30, 2017	Dec. 31, 2016
ASSETS
Cash and due from banks	$ 45,008	$ 36,790
Interest-bearing deposits in banks	36,171	118,039
Other short-term investments	17,459	10,896
Cash and cash equivalents	98,638	165,725
Securities available-for-sale	450,273	347,705
Other investments	26,741	23,806
Loans held for sale	1,744	35,219
Loans held for investment	1,962,091	1,981,330
Less: allowance for loan losses	(21,870)	(20,595)
Loans held for investment, net	1,940,221	1,960,735
Branch premises held for sale	0	2,995
Premises and equipment, net	11,997	11,958
Bank owned life insurance	62,901	62,160
Goodwill and intangible assets, net	28,446	29,567
Other real estate owned	1,819	1,872
Other assets	79,795	85,801
Total assets	2,702,575	2,727,543
Deposits:
Noninterest-bearing demand	612,744	643,471
Interest-bearing checking	250,254	264,062
Savings	30,170	27,932
Money market	882,824	912,493
Time	142,915	157,810
Brokered deposits	195,047	200,223
Total deposits	2,113,954	2,205,991
Deposits to be assumed in branch sale	0	31,589
Federal funds purchased and securities sold under agreements to repurchase	15,000	0
Federal Home Loan Bank borrowings	180,000	110,000
Long-term debt	49,451	49,366
Other liabilities	24,735	26,939
Total liabilities	2,383,140	2,423,885
SHAREHOLDERS’ EQUITY
Preferred Stock, no par value – 10,000,000 shares authorized; no shares issued and outstanding as of June 30, 2017 and December 31, 2016	0	0
Common stock, no par value – 100,000,000 shares authorized; 25,654,521 and 25,093,135 shares issued and outstanding as of June 30, 2017, and December 31, 2016, respectively	297,610	292,747
Retained earnings	24,095	16,536
Accumulated other comprehensive (loss) income	(2,270)	(5,625)
Total shareholders’ equity	319,435	303,658
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY	$ 2,702,575	$ 2,727,543

XML

Consolidated Balance Sheets (Parenthetical) - shares	Jun. 30, 2017	Dec. 31, 2016
Statement of Financial Position [Abstract]
Preferred stock authorized (in shares)	10,000,000	10,000,000
Preferred stock issued (in shares)	0	0
Preferred stock outstanding (in shares)	0	0
Common stock authorized (in shares)	100,000,000	100,000,000
Common stock issued (in shares)	25,654,521	25,093,135
Common stock outstanding (in shares)	25,654,521	25,093,135

XML

Consolidated Statements of Income - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
INTEREST INCOME
Loans, including fees	$ 21,361	$ 20,282	$ 41,355	$ 39,907
Investment securities – available-for-sale	2,355	1,327	4,373	2,928
Interest and dividends on other interest-earning assets	606	507	1,055	780
Total interest income	24,322	22,116	46,783	43,615
INTEREST EXPENSE
Interest on deposits	2,481	1,841	4,528	3,514
Interest on Federal Home Loan Bank advances	452	147	754	191
Interest on federal funds purchased and securities sold under agreements to repurchase	76	87	112	154
Interest on long-term debt	824	832	1,647	1,642
Other	0	0	0	38
Total interest expense	3,833	2,907	7,041	5,539
NET INTEREST INCOME BEFORE PROVISION FOR LOAN LOSSES	20,489	19,209	39,742	38,076
Provision for loan losses	1,980	777	2,614	1,145
NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES	18,509	18,432	37,128	36,931
NONINTEREST INCOME
Service charges	1,274	1,392	2,623	2,890
Gain on sales of securities available-for-sale	0	11	0	44
Gain on sales of other assets	666	31	744	79
Mortgage income	388	447	645	786
Trust income	488	386	895	700
Derivatives income	116	98	65	163
Bank owned life insurance	384	398	762	791
SBA lending activities	1,171	1,204	2,398	2,084
TriNet lending activities	20	761	40	1,144
Gains on sale of branches	302	3,885	302	3,885
Other noninterest income	478	267	670	734
Total noninterest income	5,287	8,880	9,144	13,300
NONINTEREST EXPENSE
Salaries and employee benefits	10,603	10,420	21,668	20,975
Occupancy	1,074	1,274	2,304	2,374
Equipment and software	996	724	1,801	1,410
Professional services	973	760	1,877	1,508
Postage, printing and supplies	78	159	163	328
Communications and data processing	1,069	694	2,056	1,610
Marketing and business development	179	317	449	584
FDIC premiums	132	493	446	891
Merger and conversion costs	304	1,210	304	1,959
Amortization of intangibles	425	668	895	1,430
Foreclosed property/problem asset expense	107	55	110	159
Other noninterest expense	1,683	2,169	3,294	3,981
Total noninterest expense	17,623	18,943	35,367	37,209
INCOME BEFORE PROVISION FOR INCOME TAXES	6,173	8,369	10,905	13,022
Provision for income taxes	1,844	3,222	3,346	4,944
NET INCOME	$ 4,329	$ 5,147	$ 7,559	$ 8,078
NET INCOME PER SHARE:
Net income per share – basic (in dollars per share)	$ 0.17	$ 0.21	$ 0.30	$ 0.33
Net income per share – diluted (in dollars per share)	$ 0.17	$ 0.20	$ 0.29	$ 0.32

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Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Statement of Comprehensive Income [Abstract]
Net income	$ 4,329	$ 5,147	$ 7,559	$ 8,078
Unrealized gains (losses) on available-for-sale securities:
Unrealized holding gains arising during the period, net of tax of $1,951, $1,043, $2,178, and $2,683, respectively	3,118	1,660	3,482	4,295
Reclassification adjustment for gains included in net income net of tax of $0, ($4), $0, and ($17), respectively	0	(7)	0	(27)
Unrealized gains on available-for-sale securities, net of tax	3,118	1,653	3,482	4,268
Cash flow hedges:
Net unrealized derivative gains (losses) on cash flow hedges, net of tax of $12, $106, ($79), and $470, respectively	19	169	(127)	742
Changes from cash flow hedges	19	169	(127)	742
Other comprehensive income, net of tax	3,137	1,822	3,355	5,010
Comprehensive income	$ 7,466	$ 6,969	$ 10,914	$ 13,088

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Consolidated Statements of Comprehensive Income (Parenthetical) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Statement of Comprehensive Income [Abstract]
Unrealized holding gains arising during the period, net of tax	$ 1,951	$ 1,043	$ 2,178	$ 2,683
Reclassification adjustment for gains (losses) included in net income net of tax	0	(4)	0	(17)
Net unrealized derivative (losses) gains on cash flow hedges, net of tax	$ 12	$ 106	$ (79)	$ 470

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Consolidated Statements of Shareholders’ Equity - USD ($) $ in Thousands	Total	Common Stock	Retained Earnings	Accumulated Other Comprehensive Income (Loss)
Beginning balance (in shares) at Dec. 31, 2015		24,425,546
Accumulated other comprehensive income (loss) beginning of period at Dec. 31, 2015	$ 287,992	$ 286,367	$ 3,141	$ (1,516)
Comprehensive income:
Net income	8,078		8,078
Change in unrealized gains on investment securities available-for-sale, net	4,268			4,268
Change in unrealized gains (losses) on cash flow hedges	742			742
Comprehensive income	13,088
Issuance of restricted stock (in shares)		61,884
Issuance of common stock for option exercises (in shares)		196,584
Issuance of common stock for option exercises	1,349	$ 1,349
Issuance of common stock for long-term incentive plan (in shares)		66,149
Issuance of common stock for long-term incentive plan	884	$ 884
Restricted stock activity	307	307
Stock-based compensation	446	$ 446
Ending balance (in shares) at Jun. 30, 2016		24,750,163.000
Accumulated other comprehensive income (loss) end of period at Jun. 30, 2016	304,066	$ 289,353	11,219	3,494
Accumulated other comprehensive income (loss) beginning of period at Mar. 31, 2016				1,672
Comprehensive income:
Net income	5,147
Change in unrealized gains on investment securities available-for-sale, net	1,653
Change in unrealized gains (losses) on cash flow hedges	169
Comprehensive income	6,969
Ending balance (in shares) at Jun. 30, 2016		24,750,163.000
Accumulated other comprehensive income (loss) end of period at Jun. 30, 2016	$ 304,066	$ 289,353	11,219	3,494
Beginning balance (in shares) at Dec. 31, 2016	25,093,135	25,093,135
Accumulated other comprehensive income (loss) beginning of period at Dec. 31, 2016	$ 303,658	$ 292,747	16,536	(5,625)
Comprehensive income:
Net income	7,559		7,559
Change in unrealized gains on investment securities available-for-sale, net	3,482			3,482
Change in unrealized gains (losses) on cash flow hedges	(127)			(127)
Comprehensive income	$ 10,914
Issuance of restricted stock (in shares)		61,715
Issuance of common stock for option exercises (in shares)	694,984	437,872
Issuance of common stock for option exercises	$ 2,901	$ 2,901
Issuance of common stock for long-term incentive plan (in shares)		61,799
Issuance of common stock for long-term incentive plan	1,209	$ 1,209
Restricted stock activity	473	473
Stock-based compensation	$ 280	$ 280
Ending balance (in shares) at Jun. 30, 2017	25,654,521	25,654,521.000
Accumulated other comprehensive income (loss) end of period at Jun. 30, 2017	$ 319,435	$ 297,610	24,095	(2,270)
Accumulated other comprehensive income (loss) beginning of period at Mar. 31, 2017				(5,407)
Comprehensive income:
Net income	4,329
Change in unrealized gains on investment securities available-for-sale, net	3,118
Change in unrealized gains (losses) on cash flow hedges	19
Comprehensive income	$ 7,466
Ending balance (in shares) at Jun. 30, 2017	25,654,521	25,654,521.000
Accumulated other comprehensive income (loss) end of period at Jun. 30, 2017	$ 319,435	$ 297,610	$ 24,095	$ (2,270)

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Consolidated Statements of Cash Flows - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016
OPERATING ACTIVITIES
Net income	$ 7,559	$ 8,078
Adjustments to reconcile net income to net cash provided by operating activities
Provision for loan losses	2,614	1,145
Depreciation, amortization, and accretion	2,757	2,960
Amortization of restricted stock compensation	473	307
Stock option compensation	280	446
Gain on sales of available-for-sale securities	0	(44)
Loss on disposition of premises and equipment, net	347	0
Net gains on sales of other real estate owned	(222)	(64)
Gain on sale of tax credit	(426)	0
Net increase in cash value of bank owned life insurance	(741)	(770)
Net gains on sale of branches	(302)	(3,885)
Origination of servicing assets	(593)	(967)
Proceeds from sales of SBA loans	27,239	26,975
Net gains on sale of SBA loans	(1,901)	(1,893)
Proceeds from sales of TriNet loans	0	97,039
Net gains on sale of TriNet loans	0	(1,144)
Changes in operating assets and liabilities -
Net change in loans held for sale	9,117	(29,480)
Net (increase) decrease in other assets	7,827	1,038
Net increase (decrease) in accrued expenses and other liabilities	9,983	7,525
Net cash provided by operating activities	64,011	107,266
Activity in securities available-for-sale:
Prepayments	22,563	21,147
Maturities and calls	1,690	20,932
Sales	0	65,103
Purchases	(121,417)	(77,270)
Net increase in loans held for investment	(7,872)	(213,434)
Purchases of Federal Home Loan Bank stock, net	(3,059)	(11,544)
Purchases of Federal Reserve Bank stock, net	(91)	(3,055)
Proceeds from sales of other real estate	709	1,146
Net cash received (paid) for branch divestiture	5,379	(140,295)
Purchases of premises and equipment, net	(1,183)	(417)
Net cash used in investing activities	(103,281)	(337,687)
FINANCING ACTIVITIES
Net change in deposits	(101,062)	86,334
Proceeds from Federal Home Loan Bank advances	1,049,000	570,000
Repayments of Federal Home Loan Bank advances	(979,000)	(330,000)
Proceeds from exercise of stock options	3,245	1,446
Net cash (used in) provided by financing activities	(27,817)	327,780
NET CHANGE IN CASH AND CASH EQUIVALENTS	(67,087)	97,359
CASH AND CASH EQUIVALENTS – beginning of period	165,725	202,885
CASH AND CASH EQUIVALENTS – end of period	98,638	300,244
SUPPLEMENTAL SCHEDULE OF CASH FLOWS
Interest paid	7,420	5,772
Income taxes paid	$ 230	$ (2,372)

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Accounting Policies and Basis of Presentation

6 Months Ended

Jun. 30, 2017

Accounting Policies [Abstract]

Accounting Policies and Basis of Presentation

ACCOUNTING POLICIES AND BASIS OF PRESENTATION

Basis of Presentation

The accounting and financial reporting policies of Atlantic Capital Bancshares, Inc. (“Atlantic Capital” or the “Company”) and its subsidiary conform to accounting principles generally accepted in the United States of America (“GAAP”) and general banking industry practices. The accompanying interim consolidated financial statements have not been audited. All material intercompany balances and transactions have been eliminated.

In management’s opinion, all accounting adjustments necessary to accurately reflect the financial position and results of operations on the accompanying financial statements have been made. These adjustments are normal and recurring accruals considered necessary for a fair and accurate presentation. The accompanying consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto included in Atlantic Capital’s filing on Form 10-K. The results for interim periods are not necessarily indicative of results for the full year or any other interim periods. Certain prior period amounts have been reclassified to conform to the current year presentation.

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Accounting Standards Updates and Recently Adopted Standards

6 Months Ended

Jun. 30, 2017

Accounting Changes and Error Corrections [Abstract]

Accounting Standards Updates and Recently Adopted Standards

ACCOUNTING STANDARDS UPDATES AND RECENTLY ADOPTED STANDARDS

In May 2017, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2017-09 - “Compensation - Stock Compensation (Topic 718): Scope and Modification Accounting.” The amendments in this ASU provide guidance about which changes to the terms or conditions of a share-based payment award require an entity to apply modification accounting in accordance with Topic 718. The amendments will be effective for interim and annual reporting periods beginning after December 15, 2017. This ASU is not expected to have a material impact on Atlantic Capital’s consolidated financial statements.

In March 2017, the FASB issued ASU 2017-08 “Receivables - Nonrefundable Fees and Other Costs (Subtopic 310-20): Premium Amortization on Purchased Callable Debt Securities.” This guidance shortens the premium amortization period for certain callable debt securities by requiring amortization to the earliest call date. The standard is effective for public companies for annual and interim periods beginning after December 15, 2020. The adoption of this update is not expected to have a material impact on Atlantic Capital’s consolidated financial statements.

In January 2017, the FASB issued ASU 2017-04, “Intangibles - Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment,” which intends to simplify goodwill impairment testing by eliminating the second step of the analysis under which the implied fair value of goodwill is determined as if the reporting unit were being acquired in a business combination. The update instead requires entities to compare the fair value of a reporting unit with its carrying amount and recognize an impairment charge for any amount by which the carrying amount exceeds the reporting unit’s fair value, to the extent that the loss recognized does not exceed the amount of goodwill allocated to that reporting unit. ASU 2017-04 must be applied prospectively and is effective for the Company on January 1, 2020. Early adoption is permitted. Atlantic Capital does not expect the new guidance to have a material impact on its financial condition or results of operation.

In August 2016, the FASB issued ASU 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments, to address diversity in how certain cash receipts and cash payments are presented and classified in the statement of cash flows. The amendments provide guidance on the following eight specific cash flow issues: 1) debt prepayment or debt extinguishment costs; 2) settlement of zero-coupon debt instruments or other debt instruments with coupon interest rates that are insignificant in relation to the effective interest rate of the borrowing; 3) contingent consideration payments made after a business combination; 4) proceeds from the settlement of insurance claims; 5) proceeds from the settlement of corporate-owned life insurance policies, including bank-owned life insurance policies; 6) distributions received from equity method investees; 7) beneficial interests in securitization transactions; and 8) separately identifiable cash flows and application of the predominance principle. The amendments are effective for public companies for fiscal years beginning after December 31, 2017, and interim periods within those fiscal years. Early adoption is permitted, including adoption in an interim period. As this guidance only affects the classification within the statement of cash flows, this ASU is not expected to have a material impact on the Company’s consolidated financial statements.

In June 2016, the FASB issued ASU 2016-13 “Financial Instruments - Credit Losses (Topic 326) Measurement of Credit Losses on Financial Instruments.” ASU 2016-13 requires an entity to utilize a new impairment model known as the current expected credit loss (“CECL”) model to estimate its lifetime “expected credit loss” and record an allowance that, when deducted from the amortized cost basis of the financial asset, presents the net amount expected to be collected on the financial asset. The CECL model is expected to result in more timely recognition of credit losses. ASU 2016-13 also requires new disclosures for financial assets measured at amortized cost, loans and available-for-sale debt securities. ASU 2016-13 is effective for public companies for annual periods beginning after December 13, 2019, including interim periods within those fiscal years. Entities will apply the standard’s provisions as a cumulative-effect adjustment to retained earnings as of the beginning of the first reporting period in which the guidance is adopted. Atlantic Capital is in the process of evaluating the impact of the adoption of ASU 2016-13 on the Company’s consolidated financial statements and disclosures.

In March 2016, the FASB issued ASU 2016-09, Compensation - Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting. The amendments in ASU 2016-09 simplify several aspects of accounting for employee share-based payments including income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash flows. Some areas of the simplification apply only to nonpublic entities. The new guidance will require all income tax effects of awards to be recognized as income tax expense or benefit in the income statement when the awards vest or are settled and additional paid in capital pools will be eliminated. The guidance requires companies to present excess tax benefits as an operating activity on the statement of cash flows rather than as a financing activity. Companies will be required to account for forfeitures of share-based payments by recognizing forfeitures of awards as they occur or estimating the number of awards expected to be forfeited and adjusting the estimate when it is likely to change, as currently required, through an accounting policy election. The guidance will increase the amount an employer can withhold to cover income taxes on awards and still qualify for the exception to liability classification for shares used to satisfy the employer’s income tax withholding obligation. The guidance requires an employer to classify the cash paid to a tax authority when shares are withheld to satisfy its statutory income tax withholding obligation as a financing activity on the statement of cash flows. ASU 2016-09 became effective for the Company on January 1, 2017 and did not have a material effect on its financial position or results of operations.

In February 2016, the FASB issued ASU 2016-2, Leases. Under the new guidance, leases classified as operating leases under previous GAAP must be recorded on the balance sheet. A lessee should recognize in the statement of financial position a liability to make lease payments (the lease liability) and a right-of-use asset representing its right to use the underlying asset for the lease term. The standard is effective for public companies for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. Early adoption is permitted. The new standard must be adopted using a modified retrospective transition, and provides for certain practical expedients. Atlantic Capital is evaluating the significance and other effects of adoption on the consolidated financial statements and related disclosures.

In January 2016, the FASB issued ASU 2016-1, Financial Instruments – Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Liabilities. The guidance in this update requires that equity investments (except those accounting for under the equity method of accounting) be measured at fair value with changes in fair value recognized in net income. However, an entity may choose to measure equity investments that do not have readily determinable fair values at cost minus impairment, if any, plus or minus changes resulting from observable price changes in orderly transactions for the identical or a similar investment of the same issuer. The guidance also simplifies the impairment assessment of equity investments without readily determinable fair values by requiring a qualitative assessment to identify impairment. In addition, the guidance addresses various disclosure and presentation issues related to financial instruments. For public entities, this update is effective for fiscal years beginning after December 15, 2017 with early application permitted. The adoption of this update is not expected to have a material impact on Atlantic Capital’s consolidated financial statements.

In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers. This update is a joint project with the International Accounting Standards Board initiated to clarify the principles for recognizing revenue and to develop a common revenue standard that is meant to remove inconsistencies and weaknesses in revenue requirements, provide a more robust framework for addressing revenue issues, improve comparability of revenue recognition practices, provide more useful information to users of financial statements and simplify the preparation of financial statements. The core principle of the guidance is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. For public companies, this guidance is effective for annual and interim periods beginning after December 15, 2017. Because the guidance does not apply to revenue associated with financial instruments, including loans and securities, Atlantic Capital does not expect this ASU to have a material impact on net interest income and securities gains. Atlantic Capital completed an initial evaluation of the impact to other revenue streams such as service charges and trust income, and believes the most significant changes will be related to disclosures.

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Acquisitions and Divestitures

6 Months Ended

Jun. 30, 2017

Business Combinations [Abstract]

Acquisitions and Divestitures

ACQUISITIONS AND DIVESTITURES

On October 31, 2015, Atlantic Capital completed the acquisition of First Security Group, Inc. (“First Security”). First Security operated twenty-five branches in Georgia and Tennessee. In connection with the acquisition, Atlantic Capital acquired approximately $801.1 million of loans and assumed approximately $970.0 million of deposits.

Acquisition-related costs totaled $304,000 for the three and six months ended June 30, 2017, respectively, and $1.2 million and $2.0 million for the three and six months ended June 30, 2016, respectively, and were included in noninterest expense in the consolidated income statement. Acquisition related costs primarily include severance costs, professional services, data processing fees related to systems conversion and other noninterest expenses.

Divestiture of Branches

On December 17, 2015, Atlantic Capital Bank, N.A. (the “Bank”) entered into two separate definitive agreements to sell seven branches in the Tennessee market. The agreement with First Freedom Bank included the sale of three branches located in Algood, Cookeville and Gainesboro, Tennessee for a premium of 2.25% of deposits. The agreement with Athens Federal Community Bank, N.A. included the sale of four branches in Athens, Lenoir City, Madisonville and Sweetwater, Tennessee for a premium of 3.50% of deposits. Both transactions closed in the second quarter of 2016 and resulted in a combined gain of $3.9 million as well as a reduction of approximately $191.0 million in deposits, approximately $34.7 million in loans and approximately $8.6 million in other assets. The gain was somewhat reduced by an impairment of $2.0 million in core deposit intangibles, which was offset by a $344,000 reversal in time deposit premium. There were also $305,000 of expenses associated with the divestitures included in noninterest expense in the second quarter of 2016.

On December 9, 2016, Atlantic Capital entered into a definitive agreement to sell one branch in Cleveland, Tennessee, to SmartBank. The sale closed in the second quarter of 2017, and resulted in a net gain of $302,000 as well as a reduction of approximately $21.9 million in deposits and approximately $27.3 million in loans and other assets. The gross gain of $533,000 was reduced by an impairment of $337,000 in core deposit intangibles, which was offset by a $106,000 reversal in time deposit premium. There were also $38,000 of expenses associated with the divestiture included in noninterest expense in the second quarter of 2017.

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Balance Sheet Offsetting

6 Months Ended

Jun. 30, 2017

Offsetting [Abstract]

Balance Sheet Offsetting

BALANCE SHEET OFFSETTING

Atlantic Capital enters into reverse repurchase agreements in order to invest short-term funds. Atlantic Capital enters into repurchase agreements for short-term financing needs.

The following table presents a summary of amounts outstanding under reverse repurchase agreements, repurchase agreements, and derivative financial instruments including those entered into in connection with the same counterparty under master netting agreements as of June 30, 2017 and December 31, 2016. While these agreements are typically over-collateralized, U.S. GAAP requires disclosures in this table to limit the amount of such collateral to the amount of the related recognized asset or liability for each counterparty.

(in thousands)							Gross Amounts not Offset in the Balance Sheet
June 30, 2017	Gross Amounts of Recognized Assets		Gross Amounts Offset on the Balance Sheet		Net Asset Balance		Financial Instruments			Cash Collateral Received			Net Amount
Reverse repurchase agreements	$	17,459	$	—	$	17,459	$	(17,459	)	$	—		$	—
Derivatives	4,150		—		4,150		—			—			4,150
Total	$	21,609	$	—	$	21,609	$	(17,459	)	$	—		$	4,150
							Gross Amounts not Offset in the Balance Sheet
	Gross Amounts of Recognized Liabilities		Gross Amounts Offset on the Balance Sheet		Net Liability Balance		Financial Instruments			Cash Collateral Pledged			Net Amount
Repurchase agreements	$	—	$	—	$	—	$	—		$	—		$	—
Derivatives	4,244		—		4,244		(2,929		)	(1,315		)	—
Total	$	4,244	$	—	$	4,244	$	(2,929	)	$	(1,315	)	$	—
							Gross Amounts not Offset in the Balance Sheet
December 31, 2016	Gross Amounts of Recognized Assets		Gross Amounts Offset on the Balance Sheet		Net Asset Balance		Financial Instruments			Cash Collateral Received			Net Amount
Reverse repurchase agreements	$	10,896	$	—	$	10,896	$	(10,896	)	$	—		$	—
Derivatives	4,310		—		4,310		—			—			4,310
Total	$	15,206	$	—	$	15,206	$	(10,896	)	$	—		$	4,310
							Gross Amounts not Offset in the Balance Sheet
	Gross Amounts of Recognized Liabilities		Gross Amounts Offset on the Balance Sheet		Net Liability Balance		Financial Instruments			Cash Collateral Pledged			Net Amount
Repurchase agreements	$	—	$	—	$	—	$	—		$	—		$	—
Derivatives	4,131		—		4,131		(1,818		)	(2,313		)	—
Total	$	4,131	$	—	$	4,131	$	(1,818	)	$	(2,313	)	$	—

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Securities

6 Months Ended

Jun. 30, 2017

Investments, Debt and Equity Securities [Abstract]

Securities

SECURITIES

The following table presents the amortized cost, unrealized gains and losses, and fair value of securities available-for-sale at June 30, 2017 and December 31, 2016.

Available-For-Sale	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
	(in thousands)
June 30, 2017
Debt securities—
U.S. Government agencies	$	35,299	$	105	$	(279	)	$	35,125
U.S. states and political divisions	97,502		316		(3,650		)	94,168
Trust preferred securities	4,741		—		(53		)	4,688
Corporate debt securities	19,777		119		(676		)	19,220
Residential mortgage-backed securities	296,934		3,117		(2,979		)	297,072
Total	$	454,253	$	3,657	$	(7,637	)	$	450,273
December 31, 2016
Debt securities—
U.S. Government agencies	$	21,485	$	24	$	(357	)	$	21,152
U.S. states and political divisions	96,908		141		(6,877		)	90,172
Trust preferred securities	4,727		—		(202		)	4,525
Corporate debt securities	19,928		72		(769		)	19,231
Residential mortgage-backed securities	214,297		2,689		(4,361		)	212,625
Total	$	357,345	$	2,926	$	(12,566	)	$	347,705

The following table presents the amortized cost and fair value of debt securities by contractual maturity at June 30, 2017. Actual maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties.

	Available-For-Sale
	Amortized Cost		Fair Value
	(in thousands)
Within 1 year	$	4,140	$	4,141
Over 1 year through 5 years	17,642		17,472
5 years to 10 years	60,990		60,448
Over 10 years	74,547		71,140
	157,319		153,201
Residential mortgage-backed securities	296,934		297,072
Total	$	454,253	$	450,273

The following table summarizes available-for-sale securities in an unrealized loss position as of June 30, 2017 and December 31, 2016.

	Less than 12 months					12 months or greater					Totals
Available-For-Sale	Fair Value		Unrealized Losses			Fair Value		Unrealized Losses			Fair Value		Unrealized Losses
	(in thousands)
June 30, 2017
U.S. Government agencies	$	24,547	$	(207	)	2,673		$	(72	)	$	27,220	$	(279	)
U.S. states and political divisions	75,219		(3,552		)	3,136		(98		)	78,355		(3,650		)
Trust preferred securities	—		—			4,688		(53		)	4,688		(53		)
Corporate debt securities	—		—			5,869		(676		)	5,869		(676		)
Residential mortgage-backed securities	106,559		(1,356		)	69,728		(1,623		)	176,287		(2,979		)
Totals	$	206,325	$	(5,115	)	$	86,094	$	(2,522	)	$	292,419	$	(7,637	)
December 31, 2016
U.S. Government agencies	$	12,250	$	(263	)	$	2,881	$	(94	)	$	15,131	$	(357	)
U.S. states and political divisions	87,511		(6,877		)	—		—			87,511		(6,877		)
Trust preferred securities	—		—			4,525		(202		)	4,525		(202		)
Corporate debt securities	7,886		(769		)	—		—			7,886		(769		)
Residential mortgage-backed securities	151,406		(3,231		)	32,550		(1,130		)	183,956		(4,361		)
Totals	$	259,053	$	(11,140	)	$	39,956	$	(1,426	)	$	299,009	$	(12,566	)

At June 30, 2017, there were 248 available-for-sale securities that were in an unrealized loss position. Atlantic Capital does not intend to sell and does not believe it will be required to sell securities in an unrealized loss position prior to the recovery of their amortized cost basis. Unrealized losses at June 30, 2017 and December 31, 2016 were attributable to changes in interest rates.

Management evaluates securities for other-than-temporary impairment on a quarterly basis. Consideration is given to the length of time and the extent to which the fair value has been less than cost, the financial condition and near-term prospects of the issuer, among other factors. In analyzing an issuer’s financial condition, management considers whether the securities are issued by the federal government or its agencies, whether downgrades by bond rating agencies have occurred, and industry analysts’ reports. No impairment charges were recognized during the three or six months endedJune 30, 2017 or 2016.

Realized gains and losses are derived using the specific identification method for determining the cost of securities sold. The following table summarizes securities sales activity for the three and six months endedJune 30, 2017 and 2016.

	Three Months Ended June 30,					Six Months Ended June 30,
	2017		2016			2017		2016
	(in thousands)
Proceeds from sales	$	—	$	60,150		$	—	$	65,103
Gross realized gains	—		416			—		449
Gross realized losses	—		(405		)	—		(405		)
Net gains on sales of securities	$	—	$	11		$	—	$	44

Investment securities with a carrying value of $99.3 million and $104.9 million were pledged to secure public funds and other borrowings at June 30, 2017 and December 31, 2016, respectively.

XML

Loans and Allowance for Loan Losses

6 Months Ended

Jun. 30, 2017

Loans and Leases Receivable Disclosure [Abstract]

Loans and Allowance for Loan Losses

LOANS AND ALLOWANCE FOR LOAN LOSSES

The composition of the loan portfolio as of June 30, 2017 and December 31, 2016, is summarized below.

	June 30, 2017			December 31, 2016
	(in thousands)
Loans held for sale
Branch loans held for sale	$	—		$	30,917
Other loans held for sale	1,744			4,302
Total loans held for sale	$	1,744		$	35,219
Loans held for investment
Commercial loans:
Commercial and industrial	$	578,888		$	531,061
Commercial real estate	982,875			858,778
Construction and land	125,058			219,352
Mortgage warehouse participations	47,992			147,519
Total commercial loans	1,734,813			1,756,710
Residential:
Residential mortgages	101,798			101,921
Home equity	79,769			77,358
Total residential loans	181,567			179,279
Consumer	31,981			27,338
Other	18,013			21,565
Total loans	1,966,374			1,984,892
Less net deferred fees and other unearned income	(4,283		)	(3,562		)
Less allowance for loan losses	(21,870		)	(20,595		)
Loans held for investment, net	$	1,940,221		$	1,960,735

At June 30, 2017 and December 31, 2016, loans with a carrying value of $458.9 million and $474.8 million, respectively, were pledged as collateral to secure FHLB advances and the Federal Reserve discount window.

At June 30, 2017, the carrying value and outstanding balance of Purchased Credit Impaired (“PCI”) loans accounted for under ASC 310-30 was $11.5 million and $14.5 million, respectively. At December 31, 2016, the carrying value and outstanding balance of PCI loans accounted for under ASC 310-30 was $15.3 million and $18.7 million, respectively. The following table presents changes in the value of the accretable yield for acquired loans accounted for under ASC 310-30.

	For the Three Months Ended						For the Six Months Ended
	June 30, 2017			June 30, 2016			June 30, 2017			June 30, 2016
	(in thousands)
Balance at beginning of period	$	3,369		$	2,088		$	3,467		$	2,369
Additions due to acquisitions	—			—			—			—
Accretion	(334		)	(262		)	(779		)	(543		)
Reclassification of nonaccretable discount due to improvement in expected cash flows	92			—			344			—
Other changes, net	3			—			98			—
Balance at end of period	$	3,130		$	1,826		$	3,130		$	1,826

In addition to the accretable yield on PCI loans, the fair value adjustments on purchased loans outside the scope of ASC 310-30 are also accreted to interest income over the life of the loans. At June 30, 2017, the remaining accretable fair value discount on loans acquired through a business combination and not accounted for under ASC 310-30 was $3.0 million compared to $3.9 million at December 31, 2016.

The allowance for loan losses represents management’s estimate of probable incurred losses in the loan portfolio as of the end of the period. It is comprised of specific reserves for impaired loans and a general allowance for pools of loans with similar characteristics not individually evaluated. The allowance is regularly evaluated for loan losses to maintain an adequate level to absorb probable current inherent losses in the loan portfolio. Factors contributing to the determination of the allowance include the credit worthiness of the borrower, changes in the value of pledged collateral, and general economic conditions. Most loan commitments rated substandard or worse are specifically reviewed for loss potential. For loans deemed to be impaired, a specific allocation is assigned based on the losses expected to be realized from those loans.

The following table presents the balance and activity in the allowance for credit losses by portfolio segment for the three and six months endedJune 30, 2017 and 2016.

	2017												2016
Three Months Ended June 30,	Commercial			Residential			Consumer			Total			Commercial			Residential			Consumer			Total
	(in thousands)
Allowance for loan losses:
Beginning balance	$	18,101		$	1,406		$	432		$	19,939		$	15,613		$	1,502		$	493		$	17,608
Provision for loan losses	2,582			(540		)	(62		)	1,980			861			(88		)	4			777
Loans charged-off	—			(8		)	(57		)	(65		)	(5		)	(25		)	(38		)	(68		)
Recoveries	9			2			5			16			—			—			60			60
Total ending allowance balance	$	20,692		$	860		$	318		$	21,870		$	16,469		$	1,389		$	519		$	18,377
	2017												2016
Six Months Ended June 30,	Commercial			Residential			Consumer			Total			Commercial			Residential			Consumer			Total
	(in thousands)
Allowance for loan losses:
Beginning balance	$	18,717		$	1,418		$	460		$	20,595		$	16,537		$	1,981		$	387		$	18,905
Provision for loan losses	2,879			(506		)	241			2,614			1,525			(567		)	187			1,145
Loans charged-off	(913		)	(54		)	(389		)	(1,356		)	(1,610		)	(25		)	(184		)	(1,819		)
Recoveries	9			2			6			17			17			—			129			146
Total ending allowance balance	$	20,692		$	860		$	318		$	21,870		$	16,469		$	1,389		$	519		$	18,377

The general component of the allowance for loan losses is based on the incurred losses inherent in the portfolio. The loss factors are determined through the generation of probabilities of default (“PDs”) and losses given default (“LGDs”) for groups of similar loans with similar credit grades where Loss Rate = PD x LGD. The PDs and LGDs for the loan portfolio are calculated based on Atlantic Capital’s loss history as well as available market-based data. The loss factor for each pool of loans is adjusted based on Qualitative and Environmental factors to account for conditions in the current environment which management believes are likely to cause a difference between the calculated loss based on historical performance and the incurred loss in the existing portfolio. These factors include: changes in policies and procedures, changes in the economy, changes in nature or volume of the portfolio and in the terms of loans, changes in lending management, changes in past dues and credit migration, changes in the loan review system, changes in the value of collateral and concentration risk and changes in external factors, such as competition, legal and regulatory. On a quarterly basis, management evaluates these factors in order to determine an adjustment unique to Atlantic Capital and its market.

Charge-offs are recognized when the amount of the loss is quantifiable and timing is known. Collateral based loan charge-offs are measured based on the difference between the loan’s carrying value, including deferred fees, and the estimated net realizable value of the loan. When assessing property value for the purpose of determining a charge-off, a third-party appraisal or an independently derived internal evaluation is generally employed.

A loan is considered to be impaired when, based on current information and events, it is probable that all amounts due according to the contractual terms of the loan agreement will not be collected. Loans for which the terms have been modified resulting in a concession, and for which the borrower is experiencing financial difficulties, are considered troubled debt restructurings (“TDRs”) and classified as impaired. Factors considered by management in determining impairment include payment status, collateral value, and the probability of collecting scheduled principal and interest payments when due. Loans that experience insignificant payment delays and payment shortfalls generally are not classified as impaired. Management determines the significance of payment delays and payment shortfalls on a case-by-case basis, taking into consideration all of the circumstances surrounding the loan and the borrower, including the length of the delay, the reasons for the delay, the borrower’s prior payment record, and the amount of the shortfall in relation to the principal and interest owed. A specific allowance is established for individually evaluated impaired loans as needed. Reserves on impaired loans are measured based on the present value of expected future cash flows discounted at the loan’s effective interest rate or the observable market price, or the fair value of the underlying collateral of the loan if the loan is collateral dependent.

Atlantic Capital’s policy is to place loans on nonaccrual status, when, in the opinion of management, the principal and interest on a loan is not likely to be repaid in accordance with the loan terms or when the loan becomes 90 days past due and is not both well secured and in the process of collection. When a loan is classified on nonaccrual status, interest previously accrued but not collected is reversed against current interest revenue. Principal and interest payments received on a nonaccrual loan are applied to reduce outstanding principal.

PCI loans are considered past due or delinquent when the contractual principal or interest due in accordance with the terms of the loan agreement remains unpaid after the due date of the scheduled payment. Loans accounted for under ASC 310-30 were not classified as nonaccrual at June 30, 2017 or December 31, 2016, as the carrying value of the respective loan or pool of loans’ cash flows were considered estimable and collection was probable. Therefore, interest revenue, through accretion of the difference between the carrying value of the loans and the expected cash flows (accretable yield), is being recognized on all acquired loans being accounted for under ASC 310-30.

The balance in the allowance for loan losses and the recorded investment in loans by portfolio segment and based on impairment method is presented in the following table as of June 30, 2017 and December 31, 2016.

June 30, 2017	Commercial		Residential		Consumer		Total
	(in thousands)
Allowance for loan losses:
Ending allowance balance attributable to loans
Individually evaluated for impairment	$	3,249	$	—	$	—	$	3,249
Collectively evaluated for impairment	17,370		860		316		18,546
PCI	73		—		2		75
Total ending allowance balance	$	20,692	$	860	$	318	$	21,870
Loans:
Loans individually evaluated for impairment	$	16,931	$	868	$	—	$	17,799
Loans collectively evaluated for impairment	1,709,411		177,669		49,985		1,937,065
PCI	8,471		3,030		9		11,510
Total ending loans balance	$	1,734,813	$	181,567	$	49,994	$	1,966,374
December 31, 2016	Commercial		Residential		Consumer		Total
	(in thousands)
Allowance for loan losses:
Ending allowance balance attributable to loans
Individually evaluated for impairment	$	2,626	$	58	$	—	$	2,684
Collectively evaluated for impairment	16,018		1,360		459		17,837
PCI	73		—		1		74
Total ending allowance balance	$	18,717	$	1,418	$	460	$	20,595
Loans:
Loans individually evaluated for impairment	$	13,687	$	398	$	—	$	14,085
Loans collectively evaluated for impairment	1,732,324		174,338		48,892		1,955,554
PCI	10,699		4,543		11		15,253
Total ending loans balance	$	1,756,710	$	179,279	$	48,903	$	1,984,892

The following tables present information on Atlantic Capital’s impaired loans for the three and six months endedJune 30, 2017 and 2016:

	For the Three Months Ended June 30,
	2017										2016
	Unpaid Principal Balance		Recorded Investment		Related Allowance		Average Balance of Recorded Investment While Impaired		Interest Income Recognized During Impairment		Unpaid Principal Balance		Recorded Investment		Related Allowance		Average Balance of Recorded Investment While Impaired		Interest Income Recognized During Impairment
	(in thousands)
Impaired loans with no related allowance recorded:
Commercial and industrial	$	4,962	$	4,899	$	—	$	4,866	$	13	$	2,843	$	2,843	$	—	$	2,811	$	36
Commercial real estate	2,494		2,331		—		2,361		20		557		416		—		413		21
Construction and land	—		—		—		—		—		—		—		—		—		—
Residential mortgages	380		334		—		340		—		—		—		—		—		—
Home equity	534		534		—		541		—		—		—		—		—		—
Mortgage warehouse	—		—		—		—		—		—		—		—		—		—
Consumer	—		—		—		—		—		—		—		—		—		—
Total	$	8,370	$	8,098	$	—	$	8,108	$	33	$	3,400	$	3,259	$	—	$	3,224	$	57
Impaired loans with an allowance recorded:
Commercial and industrial	$	9,122	$	9,122	$	3,106	$	9,160	$	138	$	78	$	78	$	390	$	78	$	—
Commercial real estate	579		579		143		582		6		1,659		1,659		261		1,659		6
Construction and land	—		—		—		—		—		—		—		—		—		—
Residential mortgages	—		—		—		—		—		—		—		—		—		—
Home equity	—		—		—		—		—		—		—		—		—		—
Mortgage warehouse	—		—		—		—		—		—		—		—		—		—
Consumer	—		—		—		—		—		—		—		—		—		—
Total	$	9,701	$	9,701	$	3,249	$	9,742	$	144	$	1,737	$	1,737	$	651	$	1,737	$	6
Total impaired loans	$	18,071	$	17,799	$	3,249	$	17,850	$	177	$	5,137	$	4,996	$	651	$	4,961	$	63

	For the Six Months Ended June 30,
	2017										2016
	Unpaid Principal Balance		Recorded Investment		Related Allowance		Average Balance of Recorded Investment While Impaired		Interest Income Recognized During Impairment		Unpaid Principal Balance		Recorded Investment		Related Allowance		Average Balance of Recorded Investment While Impaired		Interest Income Recognized During Impairment
	(in thousands)
Impaired loans with no related allowance recorded:
Commercial and industrial	$	4,962	$	4,899	$	—	$	5,346	$	30	$	2,843	$	2,843	$	—	$	2,774	$	72
Commercial real estate	2,494		2,331		—		2,439		20		557		416		—		413		21
Construction and land	—		—		—		—		—		—		—		—		—		—
Residential mortgages	380		334		—		366		—		—		—		—		—		—
Home equity	534		534		—		541		—		—		—		—		—		—
Mortgage warehouse	—		—		—		—		—		—		—		—		—		—
Consumer	—		—		—		—		—		—		—		—		—		—
Total	$	8,370	$	8,098	$	—	$	8,692	$	50	$	3,400	$	3,259	$	—	$	3,187	$	93
Impaired loans with an allowance recorded:
Commercial and industrial	$	9,122	$	9,122	$	3,106	$	9,200	$	246	$	78	$	78	$	390	$	78	$	—
Commercial real estate	579		579		143		585		13		1,659		1,659		261		1,659		27
Construction and land	—		—		—		—		—		—		—		—		—		—
Residential mortgages	—		—		—		—		—		—		—		—		—		—
Home equity	—		—		—		—		—		—		—		—		—		—
Mortgage warehouse	—		—		—		—		—		—		—		—		—		—
Consumer	—		—		—		—		—		—		—		—		—		—
Total	$	9,701	$	9,701	$	3,249	$	9,785	$	259	$	1,737	$	1,737	$	651	$	1,737	$	27
Total impaired loans	$	18,071	$	17,799	$	3,249	$	18,477	$	309	$	5,137	$	4,996	$	651	$	4,924	$	120

Atlantic Capital evaluates loans in accordance with ASC 310-40, Troubled Debt Restructurings by Creditors. TDRs are loans in which Atlantic Capital has modified the terms or granted an economic concession to a borrower who is experiencing financial difficulties. These modifications may include interest rate reductions, term extensions and other concessions intended to minimize losses.

As of June 30, 2017 and December 31, 2016, the Company had a recorded investment in TDRs of $6.1 million and $6.6 million, respectively. The Company had commitments to lend additional funds of $483,000 and $387,000 on loans modified as TDRs, as of June 30, 2017 and December 31, 2016, respectively. During the three and six months ended June 30, 2017, the modification of terms for one Home Equity loan included a short term extension of the maturity date. The Company did not modify any new loans as a TDR during the three and six months endedJune 30, 2016. There were no subsequent defaults on prior TDRs.

Atlantic Capital individually rates loans based on internal credit risk ratings using numerous factors, including thorough analysis of historical and expected cash flows, consumer credit risk scores (FICO scores), rating agency information, LTV ratios, collateral, collection experience, and other internal metrics. Atlantic Capital uses a dual rating system. The likelihood of default of a credit transaction is graded in the Obligor Rating. The risk of loss given default is graded in the Facility Rating. The Obligor Rating is determined through credit analysis. Facility Ratings are used to describe the value to the Company that the collateral represents. Facility Ratings are based on the collateral package or market expectations regarding the value or liquidity of the collateral. Ratings are generally reviewed at least annually or more frequently if there is a material change in creditworthiness. Exceptions to this policy may include well collateralized term loans and loans to individuals with limited exposure or complexity.

Atlantic Capital uses the following definitions for risk ratings:

Pass: Loans that are analyzed individually as part of the above described process and that do not meet the criteria of special mention, substandard or doubtful.

Special Mention: Loans classified as special mention have a potential weakness that requires management’s close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the loan or of the institution’s credit position at some future date.

Substandard: Loans classified as substandard are inadequately protected by the current net worth and paying capacity of the obligor or of the collateral pledged, if any. Loans so classified have a well-defined weakness or weaknesses that jeopardize the liquidation of the debt. They are characterized by the distinct possibility that the institution will sustain some loss if the deficiencies are not corrected.

Doubtful: Loans classified as doubtful have all the weaknesses inherent in those classified as substandard, with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of currently existing facts, conditions, and values, highly questionable and improbable.

As of June 30, 2017 and December 31, 2016, and based on the most recent analysis performed, the risk category of loans by class of loans is as follows.

	Pass		Special Mention		Substandard Accruing		Substandard Nonaccruing		Doubtful		Total
	(in thousands)
June 30, 2017
Commercial and industrial	$	529,268	$	4,882	$	32,249	$	8,235	$	—	$	574,634
Commercial real estate	964,573		7,254		4,961		2,310		—		979,098
Construction and land	119,876		4,722		—		20		—		124,618
Residential mortgages	96,824		1,407		959		631		—		99,821
Home equity	77,461		42		500		713		—		78,716
Mortgage warehouse	47,992		—		—		—		—		47,992
Consumer/Other	49,682		97		206		—		—		49,985
Total loans, excluding PCI loans	$	1,885,676	$	18,404	$	38,875	$	11,909	$	—	$	1,954,864
Commercial and industrial	$	3,200	$	272	$	782	$	—	$	—	$	4,254
Commercial real estate	3,099		250		306		—		122		3,777
Construction and land	396		7		37		—		—		440
Residential mortgages	117		902		958		—		—		1,977
Home equity	33		649		371		—		—		1,053
Mortgage warehouse	—		—		—		—		—		—
Consumer/Other	1		1		7		—		—		9
Total PCI loans	$	6,846	$	2,081	$	2,461	$	—	$	122	$	11,510

	Pass		Special Mention		Substandard Accruing		Substandard Nonaccruing		Doubtful		Total
	(in thousands)
December 31, 2016
Commercial and industrial	$	494,617	$	3,160	$	26,399	$	3	$	471	$	524,650
Commercial real estate	843,924		5,513		5,571		—		—		855,008
Construction and land	213,981		4,789		64		—		—		218,834
Residential mortgages	97,660		586		747		147		—		99,140
Home equity	75,031		168		397		—		—		75,596
Mortgage warehouse	147,519		—		—		—		—		147,519
Consumer/Other	48,680		190		22		—		—		48,892
Total loans, excluding PCI loans	$	1,921,412	$	14,406	$	33,200	$	150	$	471	$	1,969,639
Commercial and industrial	$	4,650	$	299	$	614	$	—	$	848	$	6,411
Commercial real estate	477		240		2,716		—		337		3,770
Construction and land	229		8		281		—		—		518
Residential mortgages	59		1,232		1,016		—		474		2,781
Home equity	364		834		564		—		—		1,762
Mortgage warehouse	—		—		—		—		—		—
Consumer/Other	1		—		10		—		—		11
Total PCI loans	$	5,780	$	2,613	$	5,201	$	—	$	1,659	$	15,253

Atlantic Capital monitors loans by past due status. The following table presents the aging of the recorded investment in past due loans as of June 30, 2017 and December 31, 2016 by class of loans.

	As of June 30, 2017
	Accruing Current		Accruing 30-89 Days Past Due		Accruing 90+ Days Past Due		Nonaccruing		PCI Loans		Total
	(in thousands)
Loans by Classification
Commercial and industrial	$	565,802	$	472	$	125	$	8,235	$	4,254	$	578,888
Commercial real estate	976,640		—		148		2,310		3,777		982,875
Construction and land	124,598		—		—		20		440		125,058
Residential mortgages	98,851		261		78		631		1,977		101,798
Home equity	77,963		—		40		713		1,053		79,769
Mortgage warehouse	47,992		—		—		—		—		47,992
Consumer	49,984		1		—		—		9		49,994
Total Loans	$	1,941,830	$	734	$	391	$	11,909	$	11,510	$	1,966,374

	As of December 31, 2016
	Accruing Current		Accruing 30-89 Days Past Due		Accruing 90+ Days Past Due		Nonaccruing		PCI Loans		Total
	(in thousands)
Loans by Classification
Commercial and industrial	$	520,908	$	3,079	$	189	$	474	$	6,411	$	531,061
Commercial real estate	852,626		2,382		—		—		3,770		858,778
Construction and land	218,290		544		—		—		518		219,352
Residential mortgages	97,901		664		428		147		2,781		101,921
Home equity	74,420		884		292		—		1,762		77,358
Mortgage warehouse	147,519		—		—		—		—		147,519
Consumer	48,558		249		85		—		11		48,903
Total Loans	$	1,960,222	$	7,802	$	994	$	621	$	15,253	$	1,984,892

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Goodwill and Intangible Assets

6 Months Ended

Jun. 30, 2017

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Intangible Assets

GOODWILL AND INTANGIBLE ASSETS

The carrying amount of goodwill and other intangible assets as of June 30, 2017 and December 31, 2016 is summarized below:

	June 30,			December 31,
	2017			2016
	(in thousands)
Core deposit intangible	$	9,544		$	9,544
Less: accumulated amortization	(3,866		)	(2,971		)
Less: impairment related to divested branches	(2,286		)	(1,949		)
Core deposit intangible, net	3,392			4,624
Servicing assets, net	3,295			3,184
Total other intangibles, net	6,687			7,808
Goodwill	21,759			21,759
Total goodwill and other intangible assets, net	$	28,446		$	29,567

During the six months ended June 30, 2017 and 2016, Atlantic Capital recorded measurement period adjustments that decreased goodwill by $0 and $906,000, respectively. The adjustments reduced the TriNet servicing asset, increased the book value of securities available-for-sale, and increased the deferred tax asset.

There were no goodwill impairment charges recorded in the three and six months ended June 30, 2017 and 2016. The following table presents activity for goodwill and other intangible assets:

	For the Three Months Ended June 30,								For the Six Months Ended June 30,
	Goodwill		Core Deposit Intangible			Total			Goodwill			Core Deposit Intangible			Total
	(in thousands)
2017
Balance, beginning of period	$	21,759	$	4,154		$	25,913		$	21,759		$	4,624		$	26,383
Amortization	—		(425		)	(425		)	—			(895		)	(895		)
Impairment, due to branch divestiture	—		(337		)	(337		)	—			(337		)	(337		)
Balance, end of period	$	21,759	$	3,392		$	25,151		$	21,759		$	3,392		$	25,151
2016
Balance, beginning of period	$	22,446	$	8,256		$	30,702		$	23,352		$	9,018		$	32,370
Amortization	—		(668		)	(668		)	—			(1,430		)	(1,430		)
Impairment, due to branch divestiture	—		(1,949		)	(1,949		)	—			(1,949		)	(1,949		)
Measurement period adjustments	—		—			—			(906		)	—			(906		)
Balance, end of period	$	22,446	$	5,639		$	28,085		$	22,446		$	5,639		$	28,085

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Servicing Assets

6 Months Ended

Jun. 30, 2017

Transfers and Servicing [Abstract]

Servicing Assets

SERVICING ASSETS

SBA Servicing Assets

SBA servicing assets are initially recorded at fair value. Subsequently, Atlantic Capital accounts for SBA servicing assets using the amortization method and they are included in other assets. As of June 30, 2017 and December 31, 2016, the balance of SBA loans sold and serviced by Atlantic Capital totaled $122.8 million and $107.0 million, respectively.

Changes in the balance of servicing assets for the three and six months endedJune 30, 2017 and 2016 are presented in the following table.

	Three months ended June 30,						Six months ended June 30,
SBA Loan Servicing Assets	2017			2016			2017			2016
	(in thousands)
Beginning carrying value, net	$	2,495		$	1,860		$	2,359		$	1,687
Additions	326			359			593			561
Amortization	(257		)	(102		)	(388		)	(131		)
Impairment	—			—			—			—
Ending carrying value	$	2,564		$	2,117		$	2,564		$	2,117

At June 30, 2017 and 2016, the sensitivity of the fair value of the SBA loan servicing assets to immediate changes in key economic assumptions are presented in the table below.

Sensitivity of the SBA Servicing Assets	June 30, 2017				December 31, 2016
	(dollars in thousands)
Fair value of retained servicing assets	$	2,822			$	2,474
Weighted average life	6.69 years				6.52 years
Prepayment speed:	7.76			%	7.67			%
Decline in fair value due to a 10% adverse change	$	(100	)		$	(89	)
Decline in fair value due to a 20% adverse change	$	(173	)		$	(151	)
Weighted average discount rate	12.22			%	12.27			%
Decline in fair value due to a 100 bps adverse change	$	(109	)		$	(97	)
Decline in fair value due to a 200 bps adverse change	$	(189	)		$	(168	)

The above sensitivities are hypothetical and should be used with caution. As the amounts indicate, changes in fair value based on valuation assumptions generally cannot be extrapolated because the relationship of the change in assumption to the change in fair value may not be linear. Also, the effect of a variation in a particular assumption on the fair value of the retained interest is calculated without changing any other assumption. In reality, changes in one factor may result in changes in another, which might magnify or counteract the sensitivities.

TriNet Servicing Assets

Changes in the balance of TriNet servicing assets for the three and six months endedJune 30, 2017 and 2016 are presented in the following table.

	Three months ended June 30,						Six months ended June 30,
TriNet Servicing Assets	2017			2016			2017			2016
	(in thousands)
Beginning carrying value, net	$	778		$	1,352		$	825		$	1,175
Additions	—			179			—			406
Amortization	(47		)	(60		)	(94		)	(110		)
Impairment	—			—			—			—
Ending carrying value	$	731		$	1,471		$	731		$	1,471

At June 30, 2017, the sensitivity of the fair value of the TriNet servicing assets to immediate changes in key economic assumptions are presented in the table below.

Sensitivity of the TriNet Servicing Assets	June 30, 2017				December 31, 2016
	(dollars in thousands)
Fair value of retained servicing assets	$	788			$	840
Weighted average life	8.44 years				8.47 years
Prepayment speed:	5.00			%	5.00			%
Decline in fair value due to a 10% adverse change	$	(8	)		$	(12	)
Decline in fair value due to a 20% adverse change	$	(23	)		$	(24	)
Weighted average discount rate	8.00			%	8.00			%
Decline in fair value due to a 100 bps adverse change	$	(22	)		$	(25	)
Decline in fair value due to a 200 bps adverse change	$	(43	)		$	(49	)

The above sensitivities are hypothetical and should be used with caution. As the amounts indicate, changes in fair value based on valuation assumptions generally cannot be extrapolated because the relationship of the change in assumption to the change in fair value may not be linear. Also, the effect of a variation in a particular assumption on the fair value of the retained interest is calculated without changing any other assumption. In reality, changes in one factor may result in changes in another, which might magnify or counteract the sensitivities.

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Other Comprehensive Income (Loss)

6 Months Ended

Jun. 30, 2017

Equity [Abstract]

Other Comprehensive Income (Loss)

OTHER COMPREHENSIVE INCOME (LOSS)

Other comprehensive income (loss) for Atlantic Capital consists of changes in net unrealized gains and losses on investment securities available-for-sale and derivatives.  The following tables present a summary of the changes in accumulated other comprehensive income (loss) balances for the applicable periods.

	For the Three Months Ended									For the Six Months Ended
	June 30, 2017									June 30, 2017
	Pre-Tax Amount			Income Tax (Expense) Benefit			After-Tax Amount			Pre-Tax Amount			Income Tax (Expense) Benefit			After-Tax Amount
	(in thousands)
Accumulated other comprehensive income (loss) beginning of period	$	(8,790	)	$	3,383		$	(5,407	)	$	(9,144	)	$	3,519		$	(5,625	)
Unrealized net gains (losses) on investment securities available-for-sale	5,069			(1,951		)	3,118			5,660			(2,178		)	3,482
Reclassification adjustment for net realized gains (losses) on investment securities available-for-sale	—			—			—			—			—			—
Unrealized net gains (losses) on derivatives	31			(12		)	19			(206		)	79			(127		)
Accumulated other comprehensive income (loss) end of period	$	(3,690	)	$	1,420		$	(2,270	)	$	(3,690	)	$	1,420		$	(2,270	)

	For the Three Months Ended									For the Six Months Ended
	June 30, 2016									June 30, 2016
	Pre-Tax Amount			Income Tax (Expense) Benefit			After-Tax Amount			Pre-Tax Amount			Income Tax (Expense) Benefit			After-Tax Amount
	(in thousands)
Accumulated other comprehensive income (loss) beginning of period	$	2,724		$	(1,052	)	$	1,672		$	(2,455	)	$	939		$	(1,516	)
Unrealized net gains (losses) on investment securities available-for-sale	2,703			(1,043		)	1,660			6,978			(2,683		)	4,295
Reclassification adjustment for net realized gains on investment securities available-for-sale	(11		)	4			(7		)	(44		)	17			(27		)
Unrealized net gains (losses) on derivatives	275			(106		)	169			1,212			(470		)	742
Accumulated other comprehensive income (loss) end of period	$	5,691		$	(2,197	)	$	3,494		$	5,691		$	(2,197	)	$	3,494

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Earnings Per Common Share

6 Months Ended

Jun. 30, 2017

Earnings Per Share [Abstract]

Earnings Per Common Share

EARNINGS PER COMMON SHARE

Basic earnings per share amounts are computed by dividing net income by the weighted average number of shares of common stock outstanding.

Diluted earnings per share amounts are computed by dividing net income by the weighted average number of shares of common stock outstanding and the dilutive effects of the shares awarded under the stock option plan, based on the treasury stock method using an average fair market value of the stock during the respective periods.

The following table represents the earnings per share calculations for the three and six months endedJune 30, 2017 and 2016.

	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2017		2016		2017		2016
(in thousands, except share and per share amounts)
Net income available to common shareholders	$	4,329	$	5,147	$	7,559	$	8,078
Weighted average shares outstanding
Basic (1)	25,621,910		24,644,755		25,472,132		24,565,328
Effect of dilutive securities:
Stock options and warrants	209,371		513,939		281,501		517,640
Diluted	25,831,281		25,158,694		25,753,633		25,082,968
Income per common share:
Basic	$	0.17	$	0.21	$	0.30	$	0.33
Diluted	$	0.17	$	0.20	$	0.29	$	0.32
(1) Unvested restricted shares are participating securities and included in basic share calculations.

Stock options and warrants outstanding of 550 at June 30, 2017 and 259,044 at June 30, 2016 have not been included in diluted earnings per share because to do so would have been anti-dilutive for the periods presented. These awards were considered anti-dilutive because the exercise price of the award was higher than the market value of the shares.

The Amended and Restated Articles of Incorporation of Atlantic Capital, which were approved by the Board of Directors on March 24, 2015 and by Atlantic Capital’s shareholders on May 21, 2015, authorize Atlantic Capital to issue 110,000,000 shares of capital stock, of which 10,000,000 shares are designated as preferred stock, no par value per share, and 100,000,000 shares are designated as common stock, no par value per share.

At June 30, 2017, 25,654,521 shares of common stock were issued and outstanding. At December 31, 2016, 25,093,135 shares of common stock were issued and outstanding.

The primary source of funds available to Atlantic Capital is payments of dividends from the Bank. The Bank has not paid any dividends to Atlantic Capital in 2017 or 2016. Banking laws and other regulations limit the amount of dividends a bank subsidiary may pay without prior regulatory approval. Additionally, Atlantic Capital’s ability to pay dividends to its shareholders will depend on the ability of the Bank to pay dividends to Atlantic Capital. The Bank is subject to regulatory restrictions on the payment of cash dividends, which generally may be paid only from current earnings.

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Derivatives and Hedging

6 Months Ended

Jun. 30, 2017

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Derivatives and Hedging

DERIVATIVES AND HEDGING

Risk Management

Atlantic Capital’s objectives in using interest rate derivatives are to add stability to net interest revenue and to manage its exposure to interest rate movements. To accomplish this objective, Atlantic Capital primarily uses interest rate swaps as part of its interest rate risk management strategy.

Cash Flow Hedges

At June 30, 2017, Atlantic Capital’s interest rate swaps designated as cash flow hedges involve the payment of floating-rate amounts to a counterparty in exchange for receiving fixed-rate payments over the life of the agreements without exchange of the underlying notional amount. At June 30, 2017 and December 31, 2016, Atlantic Capital had interest rate swaps designated as cash flow hedges with an aggregate notional amount of $50.0 million.

No hedge ineffectiveness gains or losses were recognized on active cash flow hedges for the three and six months endedJune 30, 2017 and 2016. The effective portion of changes in the fair value of derivatives designated and that qualify as cash flow hedges is recorded in accumulated other comprehensive income and is subsequently reclassified into earnings in the period that the hedged forecasted transaction affects earnings. Atlantic Capital expects that approximately $159,000 will be reclassified as an increase to loan interest income over the next twelve months related to these cash flow hedges.

Customer Swaps

Atlantic Capital also enters into derivative contracts, which consist of interest rate swaps, to facilitate the needs of clients desiring to manage interest rate risk. These swaps are not designated as accounting hedges under ASC 815, Derivatives and Hedging. In order to economically hedge the interest rate risk associated with offering this product, Atlantic Capital simultaneously enters into derivative contracts with third parties to offset the customer contracts, such that Atlantic Capital minimizes its net risk exposure resulting from such transactions. The derivative contracts are structured such that the notional amounts reduce over time to generally match the expected amortization of the underlying loans. These derivatives are not speculative and arise from a service provided to clients.

Atlantic Capital’s derivative instruments are recorded at fair value in other assets and accrued interest receivable and other liabilities and accrued interest payable in the Consolidated Balance Sheets. The changes in the fair value of the derivative instruments are recognized in other noninterest income in the Consolidated Statements of Income. At June 30, 2017 and December 31, 2016, Atlantic Capital had interest rate swaps related to this program with an aggregate notional amount of $141.0 million and $140.7 million, respectively.

Atlantic Capital acquired a loan level hedging program, which First Security utilized to accommodate clients preferring a fixed rate loan. The loan documents include an addendum with a zero premium collar. The zero premium collar is a cap and a floor at the same interest rate, resulting in a fixed rate to the borrower. To hedge this embedded option, First Security entered into a dealer facing trade exactly mirroring the terms in the loan addendum.

Counterparty Credit Risk

As a result of its derivative contracts, Atlantic Capital is exposed to credit risk. Specifically approved counterparties and exposure limits are defined. On a quarterly basis, the customer derivative contracts and related counterparties are evaluated for credit risk and an adjustment is made to the contract’s fair value. This adjustment is recognized in the Consolidated Statements of Income.

Most derivative contracts with clients are secured by collateral. Additionally, in accordance with the interest rate agreements with derivatives dealers, Atlantic Capital may be required to post margin to these counterparties. At June 30, 2017 and December 31, 2016, Atlantic Capital had minimum collateral posting thresholds with certain of its derivative counterparties and posted collateral of $8.3 million and $16.3 million, respectively, against its obligations under these agreements. Cash collateral related to derivative contracts is recorded in other assets in the Consolidated Balance Sheets.

Atlantic Capital has master netting agreements with the derivatives dealers with which it does business, but reflects gross assets and liabilities on the Consolidated Balance Sheets.

In conjunction with the FASB’s fair value measurement guidance, management made an accounting policy election to measure the credit risk of its derivative financial instruments that are subject to master netting arrangements on a net basis.

To accommodate clients, Atlantic Capital occasionally enters into credit risk participation agreements with counterparty banks to accept a portion of the credit risk related to interest rate swaps. This allows clients to execute an interest rate swap with one bank while allowing for distribution of the credit risk among participating members. Credit risk participation agreements arise when Atlantic Capital contracts with other financial institutions, as a guarantor, to share credit risk associated with certain interest rate swaps. These agreements provide for reimbursement of losses resulting from a third party default on the underlying swap. At June 30, 2017 and December 31, 2016, Atlantic Capital had credit risk participation agreements with a notional amount of $16.3 million and $4.5 million, respectively.

The following table reflects the estimated fair value positions of derivative contracts and credit risk participation agreements as of June 30, 2017 and December 31, 2016:

Derivatives designated as hedging instruments under ASC 815
(in thousands)		June 30, 2017				December 31, 2016
Interest Rate Products	Balance Sheet Location	Notional Amount		Fair Value		Notional Amount		Fair Value
Cash flow hedge of LIBOR based loans	Other assets	$	25,000	$	38	$	50,000	$	186
Cash flow hedge of LIBOR based loans	Other liabilities	$	25,000	$	1	$	—	$	—
Derivatives not designated as hedging instruments under ASC 815
(in thousands)		June 30, 2017				December 31, 2016
Interest Rate Products	Balance Sheet Location	Notional Amount		Fair Value		Notional Amount		Fair Value
Customer swap positions	Other assets	$	70,476	$	1,262	$	70,352	$	1,364
Zero premium collar	Other assets	96,396		2,850		98,697		2,760
		$	166,872	$	4,112	$	169,049	$	4,124
Dealer offsets to customer swap positions	Other liabilities	$	70,476	$	1,306	$	70,352	$	1,371
Credit risk participation	Other liabilities	16,304		6		4,460		—
Dealer offset to zero premium collar	Other liabilities	96,396		2,931		98,697		2,760
		$	183,176	$	4,243	$	173,509	$	4,131

The following table reflects the impact to the Consolidated Statements of Income related to derivative contracts for the three and six months endedJune 30, 2017 and 2016:

Derivatives in Cash Flow Hedging Relationships
	Three Months Ended June 30,									Six Months Ended June 30,
(in thousands)	Amount of Gain or (Loss) Recognized in OCI on Derivatives (Effective Portion)				Gain or (Loss) Reclassified from Accumulated OCI in Income (Effective Portion)					Amount of Gain or (Loss) Recognized in OCI on Derivatives (Effective Portion)					Gain or (Loss) Reclassified from Accumulated OCI in Income (Effective Portion)
	2017		2016		Location	2017		2016		2017			2016		Location	2017		2016
Interest rate swaps	$	19	$	169	Interest income	$	110	$	183	$	(127	)	$	742	Interest income	$	247	$	369

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Other Borrowings and Long Term Debt

6 Months Ended

Jun. 30, 2017

Debt Disclosure [Abstract]

Other Borrowings and Long Term Debt

OTHER BORROWINGS AND LONG TERM DEBT

Federal Home Loan Bank borrowings as of June 30, 2017 and December 31, 2016 are as follows:

	June 30, 2017					December 31, 2016
	Balance		Interest Rate			Balance		Interest Rate
	(in thousands)					(in thousands)
FHLB short-term borrowings:					FHLB short-term borrowings:
Fixed rate advance maturing July 3, 2017	25,000		1.02	%	Fixed rate advance maturing January 17, 2017	40,000		0.64	%
Fixed rate advance maturing July 20, 2017	40,000		1.16	%	Fixed rate advance maturing January 24, 2017	40,000		0.61	%
Fixed rate advance maturing July 24, 2017	35,000		1.16	%	Fixed rate advance maturing January 30, 2017	30,000		0.62	%
Fixed rate advance maturing July 24, 2017	40,000		1.17	%	Total	$	110,000
Fixed rate advance maturing July 27, 2017	40,000		1.17	%
Total	$	180,000
Federal Funds purchased and securities sold under agreements to repurchase					Federal Funds purchased and securities sold under agreements to repurchase
Federal Funds purchased	15,000		1.28%- 1.31%		Federal Funds purchased	—		—	%
Total Short-Term Borrowings	$	195,000			Total Short-Term Borrowings	$	110,000

On September 28, 2015, Atlantic Capital issued subordinated notes (the “Notes”) totaling $50.0 million in aggregate principal amount. The Notes are due September 30, 2025 and bear a fixed rate of interest of 6.25% per year until September 29, 2020. From September 30, 2020 to the maturity date, the interest rate will be a floating rate equal to the three-month LIBOR plus 468 basis points. The Notes were priced at 100% of their par value. The Notes qualify as Tier 2 regulatory capital.

Subordinated debt is summarized as follows.

	June 30, 2017		December 31, 2016
	(in thousands
Floating rate 10 year capital securities, with interest paid semi-annually at an annual fixed rate of 6.25% until September 30, 2020	$	50,000	$	50,000
Principal amount of subordinated debt	$	50,000	$	50,000
Less debt issuance costs		549		634
Subordinated debt, net	$	49,451	$	49,366

All subordinated debt outstanding at June 30, 2017 matures after more than five years.

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Share-Based Compensation

6 Months Ended

Jun. 30, 2017

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Share-Based Compensation

SHARE-BASED COMPENSATION

Atlantic Capital sponsors a stock incentive plan for the benefit of directors and employees. Under the 2015 Stock Incentive Plan, there were approximately 4,525,000 shares reserved for issuance to directors and employees. The Compensation Committee has the authority to grant the following: an incentive or nonqualified option; a restricted stock award (including a restricted stock award or a restricted unit award); a performance award (including a performance share award or a performance unit award); a phantom stock award; a dividend equivalent award; or any other award granted under the plan.

As of June 30, 2017, approximately 3,862,000 additional awards were available to be granted under the plan. Stock options are granted at a price which is no less than the fair market value of a share of Atlantic Capital common stock on the grant date. Stock options generally vest over three years and expire after ten years.

As of June 30, 2017, no warrants were outstanding for the purchase of common stock. As of December 31, 2016, warrants for 363,000 shares were outstanding for the purchase of common stock at a price of $10.00 per warrant. The warrants were issued as of May 14, 2007, the date of issuance of common stock sold in the initial private placement, and were exercisable for a period of ten years following the issuance.

The Company estimates the fair value of its options and warrants awards using the Black-Scholes option pricing model. The risk-free rate for periods within the contractual life of the option and warrant is based on the U.S. Treasury yield curve in effect at the time of grant. There were no options or warrants granted during the six months endedJune 30, 2017 and 2016.

The following table represents stock option and warrant activity for the six months endedJune 30, 2017:

	Shares		Weighted Average Exercise Price		Weighted Average Remaining Contractual Term (in years)	Aggregate Intrinsic Value
Outstanding, December 31, 2016	1,485,704		$	11.69
Exercised	(694,984	)	10.48
Forfeited	(628	)	10.31
Expired	(635	)	126.22
Outstanding, June 30, 2017	789,457		$	12.61	6.02	$	5,274
Exercisable, June 30, 2017	513,515		$	11.72	4.99	$	3,926

Atlantic Capital recognized compensation expense relating to stock options of $139,000 and $281,000 for the three and six months endedJune 30, 2017, respectively, and $203,000 and $445,000 for the three and six months endedJune 30, 2016, respectively. Using the Black-Scholes pricing model, the amount of compensation expense was determined based on the fair value of the options at the time of grant, multiplied by the number of options granted that were expected to vest, which was then amortized over the vesting period.

The following table represents restricted stock activity for the six months endedJune 30, 2017:

	Shares		Weighted Average Grant-Date Fair Value
Outstanding, December 31, 2016	259,165		$	13.70
Granted	61,715		18.72
Vested	(58,309	)	12.25
Forfeited	(26,875	)	14.57
Outstanding, June 30, 2017	235,696		$	15.27

Compensation expense for restricted stock is based on the fair value of restricted stock awards at the time of grant, which is equal to the value of Atlantic Capital’s common stock on the date of grant. The value of restricted stock grants that are expected to vest is amortized into expense over the vesting period. For the three months ended June 30, 2017 and 2016, compensation expense of $243,000 and $205,000, respectively, was recognized related to restricted stock awards. For the six months ended June 30, 2017 and 2016, compensation expense of $473,000 and $455,000, respectively, was recognized related to restricted stock awards.

As of June 30, 2017, there was $2.7 million of unrecognized compensation cost related to restricted stock awards granted under the plan. That cost is expected to be recognized over a weighted-average period of 2.84 years.

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Fair Value Measurements

6 Months Ended

Jun. 30, 2017

Fair Value Disclosures [Abstract]

Fair Value Measurements

FAIR VALUE MEASUREMENTS

Atlantic Capital follows the guidance pursuant to ASC 820-10, Fair Value Measurements and Disclosures. This guidance defines fair value, establishes a framework for measuring fair value and expands disclosures about fair value measurements. This issuance applies to reported balances that are required or permitted to be measured at fair value under existing accounting pronouncements; accordingly, the standard does not require any new fair value measurements of reported balances. Atlantic Capital measures its investment securities and interest rate derivative assets and liabilities at fair value on a recurring basis. Fair value is used on a nonrecurring basis either when assets are evaluated for impairment or for disclosure purposes. Atlantic Capital measures its servicing assets, goodwill, intangible assets, loans held for sale, impaired loans and other real estate owned at fair value on a nonrecurring basis if necessary.

The guidance emphasizes that fair value is a market-based measurement, not an entity-specific measurement and defines fair value as the price that could be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. As a basis for considering market participant assumptions in fair value measurements, this guidance establishes a fair value hierarchy that distinguishes between market participant assumptions based on market data obtained from sources independent of the reporting entity (observable inputs that are classified within Levels 1 and 2 of the hierarchy) and the reporting entity’s own assumptions about market participant assumptions (unobservable inputs classified within Level 3 of the hierarchy).

Atlantic Capital applied the following fair value hierarchy:

Level 1 – Assets or liabilities for which the identical item is traded on an active exchange, such as publicly-traded instruments or futures contracts.

Level 2 – Assets or liabilities valued based on observable market data for similar instruments.

Level 3 – Assets or liabilities for which significant valuation assumptions are not readily observable in the market, instruments valued based on the best available data, some of which is internally-developed, and risk premiums that a market participant would require.

In instances where the determination of the fair value measurement is based on inputs from different levels of the fair value hierarchy, the level in which the entire fair value measurement falls is based on the lowest level input that is significant to the fair value measurement. There were no transfers between Level 1 and Level 2 or Level 2 and Level 3 during the six months ended June 30, 2017. There was one transfer between Level 2 and Level 3 and no transfers between Level 1 and Level 2 during the six months ended June 30, 2016.

Atlantic Capital records investment securities available-for-sale at fair value on a recurring basis. Investment securities classified as available-for-sale are reported at fair value utilizing Level 2 inputs. For these securities, Atlantic Capital obtains fair value measurements from an independent pricing service. In estimating the fair values for investment securities, Atlantic Capital believes that independent third-party market prices are the best evidence of an exit price. The fair value measurements consider observable data that may include dealer quotes, market spreads, cash flows, the Treasury Department yield curve, trade execution data, market consensus prepayment speeds, credit information and the securities’ terms and conditions, among other things.

Derivative instruments are primarily transacted as over-the-counter trades and priced with observable market assumptions. Ongoing measurements include observable market assumptions with appropriate valuation adjustments for liquidity and for credit risk of counterparties and Atlantic Capital’s own credit. For these instruments, Atlantic Capital obtains fair value measurements from an independent pricing service. The fair value measurements consider factors such as the likelihood of default by Atlantic Capital and its counterparties, total exposure and remaining maturities in determining the appropriate fair value adjustments to record. Generally, the expected loss of each client counterparty is estimated using Atlantic Capital’s internal risk rating system. For financial institution counterparties that are rated by national rating agencies, those ratings are used in determining the credit risk. This approach used to estimate exposures to counterparties is also used by Atlantic Capital to estimate its own credit risk on derivative liability positions.

Assets and Liabilities Measured at Fair Value on a Recurring Basis

The following table presents the assets that were measured at fair value on a recurring basis by level within the fair value hierarchy as reported in the Consolidated Balance Sheets at June 30, 2017 and December 31, 2016.

	Fair Value Measurements at
	June 30, 2017 Using:
	Quoted Prices in Active Markets for Identical Securities (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total
	(in thousands)
Securities available-for-sale—
U.S. government agencies	$	—	$	35,125	$	—	$	35,125
U.S. states and political subdivisions	—		94,168		—		94,168
Trust preferred securities	—		4,688		—		4,688
Corporate debt securities	—		19,220		—		19,220
Mortgage-backed securities	—		297,072		—		297,072
Total securities available-for-sale	$	—	$	450,273	$	—	$	450,273
Interest rate derivative assets	$	—	$	4,150	$	—	$	4,150
Interest rate derivative liabilities	$	—	$	4,244	$	—	$	4,244

	Fair Value Measurements at
	December 31, 2016 Using:
	Quoted Prices in Active Markets for Identical Securities (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total
	(in thousands)
Securities available-for-sale—
U.S. government agencies	$	—	$	21,152	$	—	$	21,152
U.S. states and political subdivisions	—		90,172		—		90,172
Trust preferred securities	—		4,525		—		4,525
Corporate debt securities	—		19,231		—		19,231
Mortgage-backed securities	—		212,625		—		212,625
Total securities available-for-sale	$	—	$	347,705	$	—	$	347,705
Interest rate derivative assets	$	—	$	4,310	$	—	$	4,310
Interest rate derivative liabilities	$	—	$	4,131	$	—	$	4,131

For the six months endedJune 30, 2017 and 2016, there was not a change in the methods and significant assumptions used to estimate fair value.

Assets and Liabilities Measured at Fair Value on a Non-Recurring Basis

The following table presents the assets that were measured at fair value on a nonrecurring basis by level within the fair value hierarchy as reported in the Consolidated Balance Sheets at June 30, 2017 and December 31, 2016.

June 30, 2017		Level 1 Fair Value Measurement		Level 2 Fair Value Measurement		Level 3 Fair Value Measurement		Total
	(in thousands)
Impaired Loans		$	—	$	—	$	7,655	$	7,655

December 31, 2016		Level 1 Fair Value Measurement		Level 2 Fair Value Measurement		Level 3 Fair Value Measurement		Total
	(in thousands)
Impaired Loans		$	—	$	—	$	7,248	$	7,248

Level 3 loans consist of impaired loans which have been partially charged-off or have specific valuation allowances. The fair value of Level 3 assets is estimated based on the underlying collateral value. For loans which the cash proceeds from the sale of the underlying collateral is the expected source of repayment, the fair value of these loans was derived from internal estimates of the underlying collateral incorporating market data, including third party appraisals or evaluations, when available. Appraised values may be discounted based on management’s assessment of the level of inactivity in the real estate market and other markets for the underlying collateral, changes in market conditions from the time of the valuation, and other information that in management’s judgment may affect the value. Impaired loans are evaluated on at least a quarterly basis and adjusted accordingly.

Assets and Liabilities Not Measured at Fair Value

For financial instruments that have quoted market prices, those quotes are used to determine fair value. Financial instruments that have no defined maturity, have a remaining maturity of 180 days or less, or reprice frequently to a market rate, are assumed to have a fair value that approximates the reported book value, after taking into consideration any applicable credit risk. If no market quotes are available, financial instruments are valued by discounting the expected cash flows using an estimated current market interest rate for the financial instrument. For off-balance sheet derivative instruments, fair value is estimated as the amount that Atlantic Capital would receive or pay to terminate the contracts at the reporting date, taking into account the current unrealized gains or losses on open contracts.

The short maturity of Atlantic Capital’s assets and liabilities results in having a significant number of financial instruments whose fair value equals or closely approximates carrying value. Such financial instruments are reported in the following balance sheet captions: cash and due from banks, interest-bearing deposits in other banks, other short-term investments, and FHLB stock. The fair value of securities available-for-sale equals the balance sheet value. Due to the short-term settlement of accrued interest receivable and payable, the carrying amount closely approximates fair value.

Fair value estimates are made at a specific point in time, based on relevant market information and information about the financial instrument. These estimates do not reflect the premium or discount on any particular financial instrument that could result from the sale of Atlantic Capital’s entire holdings. Because no ready market exists for a significant portion of Atlantic Capital’s financial instruments, fair value estimates are based on many judgments. These estimates are subjective in nature and involve uncertainties and matters of significant judgment and therefore cannot be determined with precision. Changes in assumptions could significantly affect the estimates.

Off-balance sheet financial instruments (commitments to extend credit and standby letters of credit) are generally short-term and at variable rates. Therefore, both the carrying amount and the estimated fair value associated with these instruments are immaterial.

The following table presents the estimated fair values of Atlantic Capital’s financial instruments at June 30, 2017 and December 31, 2016.

	Fair Value Measurements at
	June 30, 2017 Using:
	Carrying Value		Quoted Prices in Active markets for Identical Securities (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
	(in thousands)
Financial assets
Cash and due from banks	$	45,008	$	45,008	$	—	$	—
Interest bearing deposits in banks	36,171		36,171		—		—
Other short-term investments	17,459		17,459		—		—
Total securities available-for-sale	450,273		—		450,273		—
FHLB stock	10,126		—		—		10,126
Federal Reserve Bank stock	9,781		—		—		9,781
Loans held for investment, net	1,940,221		—		—		1,999,159
Loans held for sale	1,744		—		1,744		—
Derivative assets	4,150		—		4,150		—
Financial liabilities
Deposits	$	2,113,954	$	—	$	2,006,800	$	—
Federal funds purchased and securities sold under agreements to repurchase	15,000		15,000		—		—
Subordinated debt	49,451		—		50,007		—
FHLB advances	180,000		—		180,012		—
Derivative financial instruments	4,244		—		4,244		—

	Fair Value Measurements at
	December 31, 2016 Using:
	Carrying Value		Quoted Prices in Active markets for Identical Securities (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
	(in thousands)
Financial assets
Cash and due from banks	$	36,790	$	36,790	$	—	$	—
Interest-bearing deposits in other banks	118,039		118,039		—		—
Other short-term investments	10,896		10,896		—		—
Total securities available-for-sale	347,705		—		347,705		—
FHLB stock	7,067		—		—		7,067
Federal Reserve Bank stock	9,690		—		—		9,690
Loans held for investment, net	1,960,735		—		—		1,939,895
Loans held for sale	35,219		—		35,219		—
Derivative assets	4,310		—		4,310		—
Financial liabilities
Deposits	$	2,205,991	$	—	$	2,144,196	$	—
Deposits to be assumed in branch sale	31,589		—		31,589		—
Subordinated debt	49,366		—		48,971		—
FHLB advances	110,000		—		109,946		—
Derivative financial instruments	4,131		—		4,131		—

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Commitments and Contingencies

6 Months Ended

Jun. 30, 2017

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies

COMMITMENTS AND CONTINGENCIES

Atlantic Capital is a party to financial instruments with off-balance sheet risk in the normal course of business to meet the financing needs of its customers. These financial instruments include commitments to extend credit and letters of credit, most of which are standby letters of credit. These instruments involve, to varying degrees, elements of credit risk in excess of the amounts recognized in the Consolidated Balance Sheets. The contract amounts of these instruments reflect the extent of involvement Atlantic Capital has in particular classes of financial instruments.

Standby letters of credit are written conditional commitments issued by Atlantic Capital to guarantee the performance of a customer to a third party. Those guarantees are primarily issued to support public and private borrowing arrangements. Most letters of credit expire in less than one year. The credit risk involved in issuing letters of credit is essentially the same as that involved in extending loan facilities to customers.

Atlantic Capital’s exposure to credit loss in the event of nonperformance by the other party to the financial instrument for commitments to extend credit and standby letters of credit is represented by the contractual amount of those instruments. Atlantic Capital uses the same credit policies in making commitments and conditional obligations as it does for on-balance sheet instruments.

Atlantic Capital’s maximum exposure to credit risk for unfunded loan commitments and standby letters of credit at June 30, 2017 and December 31, 2016 was as follows:

	June 30, 2017		December 31, 2016
	(in thousands)
Financial Instruments whose contract amount represents credit risk:
Commitments to extend credit	$	631,250	$	617,432
Standby letters of credit	15,925		16,625
	$	647,175	$	634,057

Atlantic Capital, in the normal course of business, is subject to various pending and threatened lawsuits in which claims for monetary damages are asserted. Although it is not possible to predict the outcome of these lawsuits, or the range of any possible loss, management, after consultation with legal counsel, does not anticipate that the ultimate aggregate liability, if any, arising from these lawsuits will have a material adverse effect on Atlantic Capital’s financial position or results of operations.

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Accounting Policies and Basis of Presentation (Policies)

6 Months Ended

Jun. 30, 2017

Accounting Policies [Abstract]

Basis of Presentation

Basis of Presentation

The accounting and financial reporting policies of Atlantic Capital Bancshares, Inc. (“Atlantic Capital” or the “Company”) and its subsidiary conform to accounting principles generally accepted in the United States of America (“GAAP”) and general banking industry practices. The accompanying interim consolidated financial statements have not been audited. All material intercompany balances and transactions have been eliminated.

In management’s opinion, all accounting adjustments necessary to accurately reflect the financial position and results of operations on the accompanying financial statements have been made. These adjustments are normal and recurring accruals considered necessary for a fair and accurate presentation. The accompanying consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto included in Atlantic Capital’s filing on Form 10-K. The results for interim periods are not necessarily indicative of results for the full year or any other interim periods. Certain prior period amounts have been reclassified to conform to the current year presentation.

Accounting Standards Updates and Recently Adopted Standards

In May 2017, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2017-09 - “Compensation - Stock Compensation (Topic 718): Scope and Modification Accounting.” The amendments in this ASU provide guidance about which changes to the terms or conditions of a share-based payment award require an entity to apply modification accounting in accordance with Topic 718. The amendments will be effective for interim and annual reporting periods beginning after December 15, 2017. This ASU is not expected to have a material impact on Atlantic Capital’s consolidated financial statements.

In March 2017, the FASB issued ASU 2017-08 “Receivables - Nonrefundable Fees and Other Costs (Subtopic 310-20): Premium Amortization on Purchased Callable Debt Securities.” This guidance shortens the premium amortization period for certain callable debt securities by requiring amortization to the earliest call date. The standard is effective for public companies for annual and interim periods beginning after December 15, 2020. The adoption of this update is not expected to have a material impact on Atlantic Capital’s consolidated financial statements.

In January 2017, the FASB issued ASU 2017-04, “Intangibles - Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment,” which intends to simplify goodwill impairment testing by eliminating the second step of the analysis under which the implied fair value of goodwill is determined as if the reporting unit were being acquired in a business combination. The update instead requires entities to compare the fair value of a reporting unit with its carrying amount and recognize an impairment charge for any amount by which the carrying amount exceeds the reporting unit’s fair value, to the extent that the loss recognized does not exceed the amount of goodwill allocated to that reporting unit. ASU 2017-04 must be applied prospectively and is effective for the Company on January 1, 2020. Early adoption is permitted. Atlantic Capital does not expect the new guidance to have a material impact on its financial condition or results of operation.

In August 2016, the FASB issued ASU 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments, to address diversity in how certain cash receipts and cash payments are presented and classified in the statement of cash flows. The amendments provide guidance on the following eight specific cash flow issues: 1) debt prepayment or debt extinguishment costs; 2) settlement of zero-coupon debt instruments or other debt instruments with coupon interest rates that are insignificant in relation to the effective interest rate of the borrowing; 3) contingent consideration payments made after a business combination; 4) proceeds from the settlement of insurance claims; 5) proceeds from the settlement of corporate-owned life insurance policies, including bank-owned life insurance policies; 6) distributions received from equity method investees; 7) beneficial interests in securitization transactions; and 8) separately identifiable cash flows and application of the predominance principle. The amendments are effective for public companies for fiscal years beginning after December 31, 2017, and interim periods within those fiscal years. Early adoption is permitted, including adoption in an interim period. As this guidance only affects the classification within the statement of cash flows, this ASU is not expected to have a material impact on the Company’s consolidated financial statements.

In June 2016, the FASB issued ASU 2016-13 “Financial Instruments - Credit Losses (Topic 326) Measurement of Credit Losses on Financial Instruments.” ASU 2016-13 requires an entity to utilize a new impairment model known as the current expected credit loss (“CECL”) model to estimate its lifetime “expected credit loss” and record an allowance that, when deducted from the amortized cost basis of the financial asset, presents the net amount expected to be collected on the financial asset. The CECL model is expected to result in more timely recognition of credit losses. ASU 2016-13 also requires new disclosures for financial assets measured at amortized cost, loans and available-for-sale debt securities. ASU 2016-13 is effective for public companies for annual periods beginning after December 13, 2019, including interim periods within those fiscal years. Entities will apply the standard’s provisions as a cumulative-effect adjustment to retained earnings as of the beginning of the first reporting period in which the guidance is adopted. Atlantic Capital is in the process of evaluating the impact of the adoption of ASU 2016-13 on the Company’s consolidated financial statements and disclosures.

In March 2016, the FASB issued ASU 2016-09, Compensation - Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting. The amendments in ASU 2016-09 simplify several aspects of accounting for employee share-based payments including income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash flows. Some areas of the simplification apply only to nonpublic entities. The new guidance will require all income tax effects of awards to be recognized as income tax expense or benefit in the income statement when the awards vest or are settled and additional paid in capital pools will be eliminated. The guidance requires companies to present excess tax benefits as an operating activity on the statement of cash flows rather than as a financing activity. Companies will be required to account for forfeitures of share-based payments by recognizing forfeitures of awards as they occur or estimating the number of awards expected to be forfeited and adjusting the estimate when it is likely to change, as currently required, through an accounting policy election. The guidance will increase the amount an employer can withhold to cover income taxes on awards and still qualify for the exception to liability classification for shares used to satisfy the employer’s income tax withholding obligation. The guidance requires an employer to classify the cash paid to a tax authority when shares are withheld to satisfy its statutory income tax withholding obligation as a financing activity on the statement of cash flows. ASU 2016-09 became effective for the Company on January 1, 2017 and did not have a material effect on its financial position or results of operations.

In February 2016, the FASB issued ASU 2016-2, Leases. Under the new guidance, leases classified as operating leases under previous GAAP must be recorded on the balance sheet. A lessee should recognize in the statement of financial position a liability to make lease payments (the lease liability) and a right-of-use asset representing its right to use the underlying asset for the lease term. The standard is effective for public companies for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. Early adoption is permitted. The new standard must be adopted using a modified retrospective transition, and provides for certain practical expedients. Atlantic Capital is evaluating the significance and other effects of adoption on the consolidated financial statements and related disclosures.

In January 2016, the FASB issued ASU 2016-1, Financial Instruments – Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Liabilities. The guidance in this update requires that equity investments (except those accounting for under the equity method of accounting) be measured at fair value with changes in fair value recognized in net income. However, an entity may choose to measure equity investments that do not have readily determinable fair values at cost minus impairment, if any, plus or minus changes resulting from observable price changes in orderly transactions for the identical or a similar investment of the same issuer. The guidance also simplifies the impairment assessment of equity investments without readily determinable fair values by requiring a qualitative assessment to identify impairment. In addition, the guidance addresses various disclosure and presentation issues related to financial instruments. For public entities, this update is effective for fiscal years beginning after December 15, 2017 with early application permitted. The adoption of this update is not expected to have a material impact on Atlantic Capital’s consolidated financial statements.

In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers. This update is a joint project with the International Accounting Standards Board initiated to clarify the principles for recognizing revenue and to develop a common revenue standard that is meant to remove inconsistencies and weaknesses in revenue requirements, provide a more robust framework for addressing revenue issues, improve comparability of revenue recognition practices, provide more useful information to users of financial statements and simplify the preparation of financial statements. The core principle of the guidance is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. For public companies, this guidance is effective for annual and interim periods beginning after December 15, 2017. Because the guidance does not apply to revenue associated with financial instruments, including loans and securities, Atlantic Capital does not expect this ASU to have a material impact on net interest income and securities gains. Atlantic Capital completed an initial evaluation of the impact to other revenue streams such as service charges and trust income, and believes the most significant changes will be related to disclosures.

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Balance Sheet Offsetting (Tables)

6 Months Ended

Jun. 30, 2017

Offsetting [Abstract]

Offsetting Assets

The following table presents a summary of amounts outstanding under reverse repurchase agreements, repurchase agreements, and derivative financial instruments including those entered into in connection with the same counterparty under master netting agreements as of June 30, 2017 and December 31, 2016. While these agreements are typically over-collateralized, U.S. GAAP requires disclosures in this table to limit the amount of such collateral to the amount of the related recognized asset or liability for each counterparty.

(in thousands)							Gross Amounts not Offset in the Balance Sheet
June 30, 2017	Gross Amounts of Recognized Assets		Gross Amounts Offset on the Balance Sheet		Net Asset Balance		Financial Instruments			Cash Collateral Received			Net Amount
Reverse repurchase agreements	$	17,459	$	—	$	17,459	$	(17,459	)	$	—		$	—
Derivatives	4,150		—		4,150		—			—			4,150
Total	$	21,609	$	—	$	21,609	$	(17,459	)	$	—		$	4,150
							Gross Amounts not Offset in the Balance Sheet
	Gross Amounts of Recognized Liabilities		Gross Amounts Offset on the Balance Sheet		Net Liability Balance		Financial Instruments			Cash Collateral Pledged			Net Amount
Repurchase agreements	$	—	$	—	$	—	$	—		$	—		$	—
Derivatives	4,244		—		4,244		(2,929		)	(1,315		)	—
Total	$	4,244	$	—	$	4,244	$	(2,929	)	$	(1,315	)	$	—
							Gross Amounts not Offset in the Balance Sheet
December 31, 2016	Gross Amounts of Recognized Assets		Gross Amounts Offset on the Balance Sheet		Net Asset Balance		Financial Instruments			Cash Collateral Received			Net Amount
Reverse repurchase agreements	$	10,896	$	—	$	10,896	$	(10,896	)	$	—		$	—
Derivatives	4,310		—		4,310		—			—			4,310
Total	$	15,206	$	—	$	15,206	$	(10,896	)	$	—		$	4,310
							Gross Amounts not Offset in the Balance Sheet
	Gross Amounts of Recognized Liabilities		Gross Amounts Offset on the Balance Sheet		Net Liability Balance		Financial Instruments			Cash Collateral Pledged			Net Amount
Repurchase agreements	$	—	$	—	$	—	$	—		$	—		$	—
Derivatives	4,131		—		4,131		(1,818		)	(2,313		)	—
Total	$	4,131	$	—	$	4,131	$	(1,818	)	$	(2,313	)	$	—

Offsetting Liabilities

The following table presents a summary of amounts outstanding under reverse repurchase agreements, repurchase agreements, and derivative financial instruments including those entered into in connection with the same counterparty under master netting agreements as of June 30, 2017 and December 31, 2016. While these agreements are typically over-collateralized, U.S. GAAP requires disclosures in this table to limit the amount of such collateral to the amount of the related recognized asset or liability for each counterparty.

(in thousands)							Gross Amounts not Offset in the Balance Sheet
June 30, 2017	Gross Amounts of Recognized Assets		Gross Amounts Offset on the Balance Sheet		Net Asset Balance		Financial Instruments			Cash Collateral Received			Net Amount
Reverse repurchase agreements	$	17,459	$	—	$	17,459	$	(17,459	)	$	—		$	—
Derivatives	4,150		—		4,150		—			—			4,150
Total	$	21,609	$	—	$	21,609	$	(17,459	)	$	—		$	4,150
							Gross Amounts not Offset in the Balance Sheet
	Gross Amounts of Recognized Liabilities		Gross Amounts Offset on the Balance Sheet		Net Liability Balance		Financial Instruments			Cash Collateral Pledged			Net Amount
Repurchase agreements	$	—	$	—	$	—	$	—		$	—		$	—
Derivatives	4,244		—		4,244		(2,929		)	(1,315		)	—
Total	$	4,244	$	—	$	4,244	$	(2,929	)	$	(1,315	)	$	—
							Gross Amounts not Offset in the Balance Sheet
December 31, 2016	Gross Amounts of Recognized Assets		Gross Amounts Offset on the Balance Sheet		Net Asset Balance		Financial Instruments			Cash Collateral Received			Net Amount
Reverse repurchase agreements	$	10,896	$	—	$	10,896	$	(10,896	)	$	—		$	—
Derivatives	4,310		—		4,310		—			—			4,310
Total	$	15,206	$	—	$	15,206	$	(10,896	)	$	—		$	4,310
							Gross Amounts not Offset in the Balance Sheet
	Gross Amounts of Recognized Liabilities		Gross Amounts Offset on the Balance Sheet		Net Liability Balance		Financial Instruments			Cash Collateral Pledged			Net Amount
Repurchase agreements	$	—	$	—	$	—	$	—		$	—		$	—
Derivatives	4,131		—		4,131		(1,818		)	(2,313		)	—
Total	$	4,131	$	—	$	4,131	$	(1,818	)	$	(2,313	)	$	—

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Securities (Tables)

6 Months Ended

Jun. 30, 2017

Investments, Debt and Equity Securities [Abstract]

Schedule of Available-for-sale Securities Reconciliation

The following table presents the amortized cost, unrealized gains and losses, and fair value of securities available-for-sale at June 30, 2017 and December 31, 2016.

Available-For-Sale	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
	(in thousands)
June 30, 2017
Debt securities—
U.S. Government agencies	$	35,299	$	105	$	(279	)	$	35,125
U.S. states and political divisions	97,502		316		(3,650		)	94,168
Trust preferred securities	4,741		—		(53		)	4,688
Corporate debt securities	19,777		119		(676		)	19,220
Residential mortgage-backed securities	296,934		3,117		(2,979		)	297,072
Total	$	454,253	$	3,657	$	(7,637	)	$	450,273
December 31, 2016
Debt securities—
U.S. Government agencies	$	21,485	$	24	$	(357	)	$	21,152
U.S. states and political divisions	96,908		141		(6,877		)	90,172
Trust preferred securities	4,727		—		(202		)	4,525
Corporate debt securities	19,928		72		(769		)	19,231
Residential mortgage-backed securities	214,297		2,689		(4,361		)	212,625
Total	$	357,345	$	2,926	$	(12,566	)	$	347,705

Investments Classified by Contractual Maturity Date

The following table presents the amortized cost and fair value of debt securities by contractual maturity at June 30, 2017. Actual maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties.

	Available-For-Sale
	Amortized Cost		Fair Value
	(in thousands)
Within 1 year	$	4,140	$	4,141
Over 1 year through 5 years	17,642		17,472
5 years to 10 years	60,990		60,448
Over 10 years	74,547		71,140
	157,319		153,201
Residential mortgage-backed securities	296,934		297,072
Total	$	454,253	$	450,273

Continuous Unrealized Loss Position, Fair Value

The following table summarizes available-for-sale securities in an unrealized loss position as of June 30, 2017 and December 31, 2016.

	Less than 12 months					12 months or greater					Totals
Available-For-Sale	Fair Value		Unrealized Losses			Fair Value		Unrealized Losses			Fair Value		Unrealized Losses
	(in thousands)
June 30, 2017
U.S. Government agencies	$	24,547	$	(207	)	2,673		$	(72	)	$	27,220	$	(279	)
U.S. states and political divisions	75,219		(3,552		)	3,136		(98		)	78,355		(3,650		)
Trust preferred securities	—		—			4,688		(53		)	4,688		(53		)
Corporate debt securities	—		—			5,869		(676		)	5,869		(676		)
Residential mortgage-backed securities	106,559		(1,356		)	69,728		(1,623		)	176,287		(2,979		)
Totals	$	206,325	$	(5,115	)	$	86,094	$	(2,522	)	$	292,419	$	(7,637	)
December 31, 2016
U.S. Government agencies	$	12,250	$	(263	)	$	2,881	$	(94	)	$	15,131	$	(357	)
U.S. states and political divisions	87,511		(6,877		)	—		—			87,511		(6,877		)
Trust preferred securities	—		—			4,525		(202		)	4,525		(202		)
Corporate debt securities	7,886		(769		)	—		—			7,886		(769		)
Residential mortgage-backed securities	151,406		(3,231		)	32,550		(1,130		)	183,956		(4,361		)
Totals	$	259,053	$	(11,140	)	$	39,956	$	(1,426	)	$	299,009	$	(12,566	)

Schedule of Realized Gain (Loss)

The following table summarizes securities sales activity for the three and six months endedJune 30, 2017 and 2016.

	Three Months Ended June 30,					Six Months Ended June 30,
	2017		2016			2017		2016
	(in thousands)
Proceeds from sales	$	—	$	60,150		$	—	$	65,103
Gross realized gains	—		416			—		449
Gross realized losses	—		(405		)	—		(405		)
Net gains on sales of securities	$	—	$	11		$	—	$	44

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Loans and Allowance for Loan Losses (Tables)

6 Months Ended

Jun. 30, 2017

Loans and Leases Receivable Disclosure [Abstract]

Schedule of Accounts, Notes, Loans and Financing Receivable

The composition of the loan portfolio as of June 30, 2017 and December 31, 2016, is summarized below.

	June 30, 2017			December 31, 2016
	(in thousands)
Loans held for sale
Branch loans held for sale	$	—		$	30,917
Other loans held for sale	1,744			4,302
Total loans held for sale	$	1,744		$	35,219
Loans held for investment
Commercial loans:
Commercial and industrial	$	578,888		$	531,061
Commercial real estate	982,875			858,778
Construction and land	125,058			219,352
Mortgage warehouse participations	47,992			147,519
Total commercial loans	1,734,813			1,756,710
Residential:
Residential mortgages	101,798			101,921
Home equity	79,769			77,358
Total residential loans	181,567			179,279
Consumer	31,981			27,338
Other	18,013			21,565
Total loans	1,966,374			1,984,892
Less net deferred fees and other unearned income	(4,283		)	(3,562		)
Less allowance for loan losses	(21,870		)	(20,595		)
Loans held for investment, net	$	1,940,221		$	1,960,735

Schedule of Accretable Yield

The following table presents changes in the value of the accretable yield for acquired loans accounted for under ASC 310-30.

	For the Three Months Ended						For the Six Months Ended
	June 30, 2017			June 30, 2016			June 30, 2017			June 30, 2016
	(in thousands)
Balance at beginning of period	$	3,369		$	2,088		$	3,467		$	2,369
Additions due to acquisitions	—			—			—			—
Accretion	(334		)	(262		)	(779		)	(543		)
Reclassification of nonaccretable discount due to improvement in expected cash flows	92			—			344			—
Other changes, net	3			—			98			—
Balance at end of period	$	3,130		$	1,826		$	3,130		$	1,826

Schedule of Credit Losses Related to Financing Receivables, Current and Noncurrent

The following table presents the balance and activity in the allowance for credit losses by portfolio segment for the three and six months endedJune 30, 2017 and 2016.

	2017												2016
Three Months Ended June 30,	Commercial			Residential			Consumer			Total			Commercial			Residential			Consumer			Total
	(in thousands)
Allowance for loan losses:
Beginning balance	$	18,101		$	1,406		$	432		$	19,939		$	15,613		$	1,502		$	493		$	17,608
Provision for loan losses	2,582			(540		)	(62		)	1,980			861			(88		)	4			777
Loans charged-off	—			(8		)	(57		)	(65		)	(5		)	(25		)	(38		)	(68		)
Recoveries	9			2			5			16			—			—			60			60
Total ending allowance balance	$	20,692		$	860		$	318		$	21,870		$	16,469		$	1,389		$	519		$	18,377
	2017												2016
Six Months Ended June 30,	Commercial			Residential			Consumer			Total			Commercial			Residential			Consumer			Total
	(in thousands)
Allowance for loan losses:
Beginning balance	$	18,717		$	1,418		$	460		$	20,595		$	16,537		$	1,981		$	387		$	18,905
Provision for loan losses	2,879			(506		)	241			2,614			1,525			(567		)	187			1,145
Loans charged-off	(913		)	(54		)	(389		)	(1,356		)	(1,610		)	(25		)	(184		)	(1,819		)
Recoveries	9			2			6			17			17			—			129			146
Total ending allowance balance	$	20,692		$	860		$	318		$	21,870		$	16,469		$	1,389		$	519		$	18,377

Allowance for Credit Losses on Financing Receivables

The balance in the allowance for loan losses and the recorded investment in loans by portfolio segment and based on impairment method is presented in the following table as of June 30, 2017 and December 31, 2016.

June 30, 2017	Commercial		Residential		Consumer		Total
	(in thousands)
Allowance for loan losses:
Ending allowance balance attributable to loans
Individually evaluated for impairment	$	3,249	$	—	$	—	$	3,249
Collectively evaluated for impairment	17,370		860		316		18,546
PCI	73		—		2		75
Total ending allowance balance	$	20,692	$	860	$	318	$	21,870
Loans:
Loans individually evaluated for impairment	$	16,931	$	868	$	—	$	17,799
Loans collectively evaluated for impairment	1,709,411		177,669		49,985		1,937,065
PCI	8,471		3,030		9		11,510
Total ending loans balance	$	1,734,813	$	181,567	$	49,994	$	1,966,374
December 31, 2016	Commercial		Residential		Consumer		Total
	(in thousands)
Allowance for loan losses:
Ending allowance balance attributable to loans
Individually evaluated for impairment	$	2,626	$	58	$	—	$	2,684
Collectively evaluated for impairment	16,018		1,360		459		17,837
PCI	73		—		1		74
Total ending allowance balance	$	18,717	$	1,418	$	460	$	20,595
Loans:
Loans individually evaluated for impairment	$	13,687	$	398	$	—	$	14,085
Loans collectively evaluated for impairment	1,732,324		174,338		48,892		1,955,554
PCI	10,699		4,543		11		15,253
Total ending loans balance	$	1,756,710	$	179,279	$	48,903	$	1,984,892

Impaired Financing Receivables

The following tables present information on Atlantic Capital’s impaired loans for the three and six months endedJune 30, 2017 and 2016:

	For the Three Months Ended June 30,
	2017										2016
	Unpaid Principal Balance		Recorded Investment		Related Allowance		Average Balance of Recorded Investment While Impaired		Interest Income Recognized During Impairment		Unpaid Principal Balance		Recorded Investment		Related Allowance		Average Balance of Recorded Investment While Impaired		Interest Income Recognized During Impairment
	(in thousands)
Impaired loans with no related allowance recorded:
Commercial and industrial	$	4,962	$	4,899	$	—	$	4,866	$	13	$	2,843	$	2,843	$	—	$	2,811	$	36
Commercial real estate	2,494		2,331		—		2,361		20		557		416		—		413		21
Construction and land	—		—		—		—		—		—		—		—		—		—
Residential mortgages	380		334		—		340		—		—		—		—		—		—
Home equity	534		534		—		541		—		—		—		—		—		—
Mortgage warehouse	—		—		—		—		—		—		—		—		—		—
Consumer	—		—		—		—		—		—		—		—		—		—
Total	$	8,370	$	8,098	$	—	$	8,108	$	33	$	3,400	$	3,259	$	—	$	3,224	$	57
Impaired loans with an allowance recorded:
Commercial and industrial	$	9,122	$	9,122	$	3,106	$	9,160	$	138	$	78	$	78	$	390	$	78	$	—
Commercial real estate	579		579		143		582		6		1,659		1,659		261		1,659		6
Construction and land	—		—		—		—		—		—		—		—		—		—
Residential mortgages	—		—		—		—		—		—		—		—		—		—
Home equity	—		—		—		—		—		—		—		—		—		—
Mortgage warehouse	—		—		—		—		—		—		—		—		—		—
Consumer	—		—		—		—		—		—		—		—		—		—
Total	$	9,701	$	9,701	$	3,249	$	9,742	$	144	$	1,737	$	1,737	$	651	$	1,737	$	6
Total impaired loans	$	18,071	$	17,799	$	3,249	$	17,850	$	177	$	5,137	$	4,996	$	651	$	4,961	$	63

	For the Six Months Ended June 30,
	2017										2016
	Unpaid Principal Balance		Recorded Investment		Related Allowance		Average Balance of Recorded Investment While Impaired		Interest Income Recognized During Impairment		Unpaid Principal Balance		Recorded Investment		Related Allowance		Average Balance of Recorded Investment While Impaired		Interest Income Recognized During Impairment
	(in thousands)
Impaired loans with no related allowance recorded:
Commercial and industrial	$	4,962	$	4,899	$	—	$	5,346	$	30	$	2,843	$	2,843	$	—	$	2,774	$	72
Commercial real estate	2,494		2,331		—		2,439		20		557		416		—		413		21
Construction and land	—		—		—		—		—		—		—		—		—		—
Residential mortgages	380		334		—		366		—		—		—		—		—		—
Home equity	534		534		—		541		—		—		—		—		—		—
Mortgage warehouse	—		—		—		—		—		—		—		—		—		—
Consumer	—		—		—		—		—		—		—		—		—		—
Total	$	8,370	$	8,098	$	—	$	8,692	$	50	$	3,400	$	3,259	$	—	$	3,187	$	93
Impaired loans with an allowance recorded:
Commercial and industrial	$	9,122	$	9,122	$	3,106	$	9,200	$	246	$	78	$	78	$	390	$	78	$	—
Commercial real estate	579		579		143		585		13		1,659		1,659		261		1,659		27
Construction and land	—		—		—		—		—		—		—		—		—		—
Residential mortgages	—		—		—		—		—		—		—		—		—		—
Home equity	—		—		—		—		—		—		—		—		—		—
Mortgage warehouse	—		—		—		—		—		—		—		—		—		—
Consumer	—		—		—		—		—		—		—		—		—		—
Total	$	9,701	$	9,701	$	3,249	$	9,785	$	259	$	1,737	$	1,737	$	651	$	1,737	$	27
Total impaired loans	$	18,071	$	17,799	$	3,249	$	18,477	$	309	$	5,137	$	4,996	$	651	$	4,924	$	120

Troubled Debt Restructurings on Financing Receivables

As of June 30, 2017 and December 31, 2016, and based on the most recent analysis performed, the risk category of loans by class of loans is as follows.

	Pass		Special Mention		Substandard Accruing		Substandard Nonaccruing		Doubtful		Total
	(in thousands)
June 30, 2017
Commercial and industrial	$	529,268	$	4,882	$	32,249	$	8,235	$	—	$	574,634
Commercial real estate	964,573		7,254		4,961		2,310		—		979,098
Construction and land	119,876		4,722		—		20		—		124,618
Residential mortgages	96,824		1,407		959		631		—		99,821
Home equity	77,461		42		500		713		—		78,716
Mortgage warehouse	47,992		—		—		—		—		47,992
Consumer/Other	49,682		97		206		—		—		49,985
Total loans, excluding PCI loans	$	1,885,676	$	18,404	$	38,875	$	11,909	$	—	$	1,954,864
Commercial and industrial	$	3,200	$	272	$	782	$	—	$	—	$	4,254
Commercial real estate	3,099		250		306		—		122		3,777
Construction and land	396		7		37		—		—		440
Residential mortgages	117		902		958		—		—		1,977
Home equity	33		649		371		—		—		1,053
Mortgage warehouse	—		—		—		—		—		—
Consumer/Other	1		1		7		—		—		9
Total PCI loans	$	6,846	$	2,081	$	2,461	$	—	$	122	$	11,510

	Pass		Special Mention		Substandard Accruing		Substandard Nonaccruing		Doubtful		Total
	(in thousands)
December 31, 2016
Commercial and industrial	$	494,617	$	3,160	$	26,399	$	3	$	471	$	524,650
Commercial real estate	843,924		5,513		5,571		—		—		855,008
Construction and land	213,981		4,789		64		—		—		218,834
Residential mortgages	97,660		586		747		147		—		99,140
Home equity	75,031		168		397		—		—		75,596
Mortgage warehouse	147,519		—		—		—		—		147,519
Consumer/Other	48,680		190		22		—		—		48,892
Total loans, excluding PCI loans	$	1,921,412	$	14,406	$	33,200	$	150	$	471	$	1,969,639
Commercial and industrial	$	4,650	$	299	$	614	$	—	$	848	$	6,411
Commercial real estate	477		240		2,716		—		337		3,770
Construction and land	229		8		281		—		—		518
Residential mortgages	59		1,232		1,016		—		474		2,781
Home equity	364		834		564		—		—		1,762
Mortgage warehouse	—		—		—		—		—		—
Consumer/Other	1		—		10		—		—		11
Total PCI loans	$	5,780	$	2,613	$	5,201	$	—	$	1,659	$	15,253

Past Due Financing Receivables

The following table presents the aging of the recorded investment in past due loans as of June 30, 2017 and December 31, 2016 by class of loans.

	As of June 30, 2017
	Accruing Current		Accruing 30-89 Days Past Due		Accruing 90+ Days Past Due		Nonaccruing		PCI Loans		Total
	(in thousands)
Loans by Classification
Commercial and industrial	$	565,802	$	472	$	125	$	8,235	$	4,254	$	578,888
Commercial real estate	976,640		—		148		2,310		3,777		982,875
Construction and land	124,598		—		—		20		440		125,058
Residential mortgages	98,851		261		78		631		1,977		101,798
Home equity	77,963		—		40		713		1,053		79,769
Mortgage warehouse	47,992		—		—		—		—		47,992
Consumer	49,984		1		—		—		9		49,994
Total Loans	$	1,941,830	$	734	$	391	$	11,909	$	11,510	$	1,966,374

	As of December 31, 2016
	Accruing Current		Accruing 30-89 Days Past Due		Accruing 90+ Days Past Due		Nonaccruing		PCI Loans		Total
	(in thousands)
Loans by Classification
Commercial and industrial	$	520,908	$	3,079	$	189	$	474	$	6,411	$	531,061
Commercial real estate	852,626		2,382		—		—		3,770		858,778
Construction and land	218,290		544		—		—		518		219,352
Residential mortgages	97,901		664		428		147		2,781		101,921
Home equity	74,420		884		292		—		1,762		77,358
Mortgage warehouse	147,519		—		—		—		—		147,519
Consumer	48,558		249		85		—		11		48,903
Total Loans	$	1,960,222	$	7,802	$	994	$	621	$	15,253	$	1,984,892

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Goodwill and Intangible Assets (Tables)

6 Months Ended

Jun. 30, 2017

Goodwill and Intangible Assets Disclosure [Abstract]

Schedule of Intangible Assets and Goodwill

The following table presents activity for goodwill and other intangible assets:

	For the Three Months Ended June 30,								For the Six Months Ended June 30,
	Goodwill		Core Deposit Intangible			Total			Goodwill			Core Deposit Intangible			Total
	(in thousands)
2017
Balance, beginning of period	$	21,759	$	4,154		$	25,913		$	21,759		$	4,624		$	26,383
Amortization	—		(425		)	(425		)	—			(895		)	(895		)
Impairment, due to branch divestiture	—		(337		)	(337		)	—			(337		)	(337		)
Balance, end of period	$	21,759	$	3,392		$	25,151		$	21,759		$	3,392		$	25,151
2016
Balance, beginning of period	$	22,446	$	8,256		$	30,702		$	23,352		$	9,018		$	32,370
Amortization	—		(668		)	(668		)	—			(1,430		)	(1,430		)
Impairment, due to branch divestiture	—		(1,949		)	(1,949		)	—			(1,949		)	(1,949		)
Measurement period adjustments	—		—			—			(906		)	—			(906		)
Balance, end of period	$	22,446	$	5,639		$	28,085		$	22,446		$	5,639		$	28,085

The carrying amount of goodwill and other intangible assets as of June 30, 2017 and December 31, 2016 is summarized below:

	June 30,			December 31,
	2017			2016
	(in thousands)
Core deposit intangible	$	9,544		$	9,544
Less: accumulated amortization	(3,866		)	(2,971		)
Less: impairment related to divested branches	(2,286		)	(1,949		)
Core deposit intangible, net	3,392			4,624
Servicing assets, net	3,295			3,184
Total other intangibles, net	6,687			7,808
Goodwill	21,759			21,759
Total goodwill and other intangible assets, net	$	28,446		$	29,567

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Servicing Assets (Tables)

6 Months Ended

Jun. 30, 2017

Transfers and Servicing [Abstract]

Changes in the Balance of Servicing Assets

Changes in the balance of TriNet servicing assets for the three and six months endedJune 30, 2017 and 2016 are presented in the following table.

	Three months ended June 30,						Six months ended June 30,
TriNet Servicing Assets	2017			2016			2017			2016
	(in thousands)
Beginning carrying value, net	$	778		$	1,352		$	825		$	1,175
Additions	—			179			—			406
Amortization	(47		)	(60		)	(94		)	(110		)
Impairment	—			—			—			—
Ending carrying value	$	731		$	1,471		$	731		$	1,471

Changes in the balance of servicing assets for the three and six months endedJune 30, 2017 and 2016 are presented in the following table.

	Three months ended June 30,						Six months ended June 30,
SBA Loan Servicing Assets	2017			2016			2017			2016
	(in thousands)
Beginning carrying value, net	$	2,495		$	1,860		$	2,359		$	1,687
Additions	326			359			593			561
Amortization	(257		)	(102		)	(388		)	(131		)
Impairment	—			—			—			—
Ending carrying value	$	2,564		$	2,117		$	2,564		$	2,117

Schedule of Sensitivity to Immediate Changes in Key Economic Assumptions

At June 30, 2017 and 2016, the sensitivity of the fair value of the SBA loan servicing assets to immediate changes in key economic assumptions are presented in the table below.

Sensitivity of the SBA Servicing Assets	June 30, 2017				December 31, 2016
	(dollars in thousands)
Fair value of retained servicing assets	$	2,822			$	2,474
Weighted average life	6.69 years				6.52 years
Prepayment speed:	7.76			%	7.67			%
Decline in fair value due to a 10% adverse change	$	(100	)		$	(89	)
Decline in fair value due to a 20% adverse change	$	(173	)		$	(151	)
Weighted average discount rate	12.22			%	12.27			%
Decline in fair value due to a 100 bps adverse change	$	(109	)		$	(97	)
Decline in fair value due to a 200 bps adverse change	$	(189	)		$	(168	)

At June 30, 2017, the sensitivity of the fair value of the TriNet servicing assets to immediate changes in key economic assumptions are presented in the table below.

Sensitivity of the TriNet Servicing Assets	June 30, 2017				December 31, 2016
	(dollars in thousands)
Fair value of retained servicing assets	$	788			$	840
Weighted average life	8.44 years				8.47 years
Prepayment speed:	5.00			%	5.00			%
Decline in fair value due to a 10% adverse change	$	(8	)		$	(12	)
Decline in fair value due to a 20% adverse change	$	(23	)		$	(24	)
Weighted average discount rate	8.00			%	8.00			%
Decline in fair value due to a 100 bps adverse change	$	(22	)		$	(25	)
Decline in fair value due to a 200 bps adverse change	$	(43	)		$	(49	)

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Other Comprehensive Income (Loss) (Tables)

6 Months Ended

Jun. 30, 2017

Equity [Abstract]

Schedule of Accumulated Other Comprehensive Income (Loss)

The following tables present a summary of the changes in accumulated other comprehensive income (loss) balances for the applicable periods.

	For the Three Months Ended									For the Six Months Ended
	June 30, 2017									June 30, 2017
	Pre-Tax Amount			Income Tax (Expense) Benefit			After-Tax Amount			Pre-Tax Amount			Income Tax (Expense) Benefit			After-Tax Amount
	(in thousands)
Accumulated other comprehensive income (loss) beginning of period	$	(8,790	)	$	3,383		$	(5,407	)	$	(9,144	)	$	3,519		$	(5,625	)
Unrealized net gains (losses) on investment securities available-for-sale	5,069			(1,951		)	3,118			5,660			(2,178		)	3,482
Reclassification adjustment for net realized gains (losses) on investment securities available-for-sale	—			—			—			—			—			—
Unrealized net gains (losses) on derivatives	31			(12		)	19			(206		)	79			(127		)
Accumulated other comprehensive income (loss) end of period	$	(3,690	)	$	1,420		$	(2,270	)	$	(3,690	)	$	1,420		$	(2,270	)

	For the Three Months Ended									For the Six Months Ended
	June 30, 2016									June 30, 2016
	Pre-Tax Amount			Income Tax (Expense) Benefit			After-Tax Amount			Pre-Tax Amount			Income Tax (Expense) Benefit			After-Tax Amount
	(in thousands)
Accumulated other comprehensive income (loss) beginning of period	$	2,724		$	(1,052	)	$	1,672		$	(2,455	)	$	939		$	(1,516	)
Unrealized net gains (losses) on investment securities available-for-sale	2,703			(1,043		)	1,660			6,978			(2,683		)	4,295
Reclassification adjustment for net realized gains on investment securities available-for-sale	(11		)	4			(7		)	(44		)	17			(27		)
Unrealized net gains (losses) on derivatives	275			(106		)	169			1,212			(470		)	742
Accumulated other comprehensive income (loss) end of period	$	5,691		$	(2,197	)	$	3,494		$	5,691		$	(2,197	)	$	3,494

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Earnings Per Common Share (Tables)

6 Months Ended

Jun. 30, 2017

Earnings Per Share [Abstract]

Schedule of Calculation of Numerator and Denominator in Earnings Per Share

The following table represents the earnings per share calculations for the three and six months endedJune 30, 2017 and 2016.

	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2017		2016		2017		2016
(in thousands, except share and per share amounts)
Net income available to common shareholders	$	4,329	$	5,147	$	7,559	$	8,078
Weighted average shares outstanding
Basic (1)	25,621,910		24,644,755		25,472,132		24,565,328
Effect of dilutive securities:
Stock options and warrants	209,371		513,939		281,501		517,640
Diluted	25,831,281		25,158,694		25,753,633		25,082,968
Income per common share:
Basic	$	0.17	$	0.21	$	0.30	$	0.33
Diluted	$	0.17	$	0.20	$	0.29	$	0.32
(1) Unvested restricted shares are participating securities and included in basic share calculations.

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Derivatives and Hedging (Tables)

6 Months Ended

Jun. 30, 2017

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Schedule of Derivative Instruments

The following table reflects the estimated fair value positions of derivative contracts and credit risk participation agreements as of June 30, 2017 and December 31, 2016:

Derivatives designated as hedging instruments under ASC 815
(in thousands)		June 30, 2017				December 31, 2016
Interest Rate Products	Balance Sheet Location	Notional Amount		Fair Value		Notional Amount		Fair Value
Cash flow hedge of LIBOR based loans	Other assets	$	25,000	$	38	$	50,000	$	186
Cash flow hedge of LIBOR based loans	Other liabilities	$	25,000	$	1	$	—	$	—
Derivatives not designated as hedging instruments under ASC 815
(in thousands)		June 30, 2017				December 31, 2016
Interest Rate Products	Balance Sheet Location	Notional Amount		Fair Value		Notional Amount		Fair Value
Customer swap positions	Other assets	$	70,476	$	1,262	$	70,352	$	1,364
Zero premium collar	Other assets	96,396		2,850		98,697		2,760
		$	166,872	$	4,112	$	169,049	$	4,124
Dealer offsets to customer swap positions	Other liabilities	$	70,476	$	1,306	$	70,352	$	1,371
Credit risk participation	Other liabilities	16,304		6		4,460		—
Dealer offset to zero premium collar	Other liabilities	96,396		2,931		98,697		2,760
		$	183,176	$	4,243	$	173,509	$	4,131

The following table reflects the impact to the Consolidated Statements of Income related to derivative contracts for the three and six months endedJune 30, 2017 and 2016:

Derivatives in Cash Flow Hedging Relationships
	Three Months Ended June 30,									Six Months Ended June 30,
(in thousands)	Amount of Gain or (Loss) Recognized in OCI on Derivatives (Effective Portion)				Gain or (Loss) Reclassified from Accumulated OCI in Income (Effective Portion)					Amount of Gain or (Loss) Recognized in OCI on Derivatives (Effective Portion)					Gain or (Loss) Reclassified from Accumulated OCI in Income (Effective Portion)
	2017		2016		Location	2017		2016		2017			2016		Location	2017		2016
Interest rate swaps	$	19	$	169	Interest income	$	110	$	183	$	(127	)	$	742	Interest income	$	247	$	369

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Other Borrowings and Long Term Debt (Tables)

6 Months Ended

Jun. 30, 2017

Debt Disclosure [Abstract]

Schedule of Long-term Debt Instruments and Borrowings

Subordinated debt is summarized as follows.

	June 30, 2017		December 31, 2016
	(in thousands
Floating rate 10 year capital securities, with interest paid semi-annually at an annual fixed rate of 6.25% until September 30, 2020	$	50,000	$	50,000
Principal amount of subordinated debt	$	50,000	$	50,000
Less debt issuance costs		549		634
Subordinated debt, net	$	49,451	$	49,366

Federal Home Loan Bank borrowings as of June 30, 2017 and December 31, 2016 are as follows:

	June 30, 2017					December 31, 2016
	Balance		Interest Rate			Balance		Interest Rate
	(in thousands)					(in thousands)
FHLB short-term borrowings:					FHLB short-term borrowings:
Fixed rate advance maturing July 3, 2017	25,000		1.02	%	Fixed rate advance maturing January 17, 2017	40,000		0.64	%
Fixed rate advance maturing July 20, 2017	40,000		1.16	%	Fixed rate advance maturing January 24, 2017	40,000		0.61	%
Fixed rate advance maturing July 24, 2017	35,000		1.16	%	Fixed rate advance maturing January 30, 2017	30,000		0.62	%
Fixed rate advance maturing July 24, 2017	40,000		1.17	%	Total	$	110,000
Fixed rate advance maturing July 27, 2017	40,000		1.17	%
Total	$	180,000
Federal Funds purchased and securities sold under agreements to repurchase					Federal Funds purchased and securities sold under agreements to repurchase
Federal Funds purchased	15,000		1.28%- 1.31%		Federal Funds purchased	—		—	%
Total Short-Term Borrowings	$	195,000			Total Short-Term Borrowings	$	110,000

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Share-Based Compensation (Tables)

6 Months Ended

Jun. 30, 2017

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Schedule of Share-based Compensation, Stock Options, Activity

The following table represents stock option and warrant activity for the six months endedJune 30, 2017:

	Shares		Weighted Average Exercise Price		Weighted Average Remaining Contractual Term (in years)	Aggregate Intrinsic Value
Outstanding, December 31, 2016	1,485,704		$	11.69
Exercised	(694,984	)	10.48
Forfeited	(628	)	10.31
Expired	(635	)	126.22
Outstanding, June 30, 2017	789,457		$	12.61	6.02	$	5,274
Exercisable, June 30, 2017	513,515		$	11.72	4.99	$	3,926

Schedule of Share-based Compensation, Restricted Stock Award Activity

The following table represents restricted stock activity for the six months endedJune 30, 2017:

	Shares		Weighted Average Grant-Date Fair Value
Outstanding, December 31, 2016	259,165		$	13.70
Granted	61,715		18.72
Vested	(58,309	)	12.25
Forfeited	(26,875	)	14.57
Outstanding, June 30, 2017	235,696		$	15.27

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Fair Value Measurements (Tables)

6 Months Ended

Jun. 30, 2017

Fair Value Disclosures [Abstract]

Schedule of Fair Value, Assets and Liabilities, Measured on Recurring Basis

The following table presents the assets that were measured at fair value on a recurring basis by level within the fair value hierarchy as reported in the Consolidated Balance Sheets at June 30, 2017 and December 31, 2016.

	Fair Value Measurements at
	June 30, 2017 Using:
	Quoted Prices in Active Markets for Identical Securities (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total
	(in thousands)
Securities available-for-sale—
U.S. government agencies	$	—	$	35,125	$	—	$	35,125
U.S. states and political subdivisions	—		94,168		—		94,168
Trust preferred securities	—		4,688		—		4,688
Corporate debt securities	—		19,220		—		19,220
Mortgage-backed securities	—		297,072		—		297,072
Total securities available-for-sale	$	—	$	450,273	$	—	$	450,273
Interest rate derivative assets	$	—	$	4,150	$	—	$	4,150
Interest rate derivative liabilities	$	—	$	4,244	$	—	$	4,244

	Fair Value Measurements at
	December 31, 2016 Using:
	Quoted Prices in Active Markets for Identical Securities (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total
	(in thousands)
Securities available-for-sale—
U.S. government agencies	$	—	$	21,152	$	—	$	21,152
U.S. states and political subdivisions	—		90,172		—		90,172
Trust preferred securities	—		4,525		—		4,525
Corporate debt securities	—		19,231		—		19,231
Mortgage-backed securities	—		212,625		—		212,625
Total securities available-for-sale	$	—	$	347,705	$	—	$	347,705
Interest rate derivative assets	$	—	$	4,310	$	—	$	4,310
Interest rate derivative liabilities	$	—	$	4,131	$	—	$	4,131

Fair Value Measurements, Nonrecurring

The following table presents the assets that were measured at fair value on a nonrecurring basis by level within the fair value hierarchy as reported in the Consolidated Balance Sheets at June 30, 2017 and December 31, 2016.

June 30, 2017		Level 1 Fair Value Measurement		Level 2 Fair Value Measurement		Level 3 Fair Value Measurement		Total
	(in thousands)
Impaired Loans		$	—	$	—	$	7,655	$	7,655

December 31, 2016		Level 1 Fair Value Measurement		Level 2 Fair Value Measurement		Level 3 Fair Value Measurement		Total
	(in thousands)
Impaired Loans		$	—	$	—	$	7,248	$	7,248

Fair Value Measurements, Recurring and Nonrecurring

The following table presents the estimated fair values of Atlantic Capital’s financial instruments at June 30, 2017 and December 31, 2016.

	Fair Value Measurements at
	June 30, 2017 Using:
	Carrying Value		Quoted Prices in Active markets for Identical Securities (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
	(in thousands)
Financial assets
Cash and due from banks	$	45,008	$	45,008	$	—	$	—
Interest bearing deposits in banks	36,171		36,171		—		—
Other short-term investments	17,459		17,459		—		—
Total securities available-for-sale	450,273		—		450,273		—
FHLB stock	10,126		—		—		10,126
Federal Reserve Bank stock	9,781		—		—		9,781
Loans held for investment, net	1,940,221		—		—		1,999,159
Loans held for sale	1,744		—		1,744		—
Derivative assets	4,150		—		4,150		—
Financial liabilities
Deposits	$	2,113,954	$	—	$	2,006,800	$	—
Federal funds purchased and securities sold under agreements to repurchase	15,000		15,000		—		—
Subordinated debt	49,451		—		50,007		—
FHLB advances	180,000		—		180,012		—
Derivative financial instruments	4,244		—		4,244		—

	Fair Value Measurements at
	December 31, 2016 Using:
	Carrying Value		Quoted Prices in Active markets for Identical Securities (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
	(in thousands)
Financial assets
Cash and due from banks	$	36,790	$	36,790	$	—	$	—
Interest-bearing deposits in other banks	118,039		118,039		—		—
Other short-term investments	10,896		10,896		—		—
Total securities available-for-sale	347,705		—		347,705		—
FHLB stock	7,067		—		—		7,067
Federal Reserve Bank stock	9,690		—		—		9,690
Loans held for investment, net	1,960,735		—		—		1,939,895
Loans held for sale	35,219		—		35,219		—
Derivative assets	4,310		—		4,310		—
Financial liabilities
Deposits	$	2,205,991	$	—	$	2,144,196	$	—
Deposits to be assumed in branch sale	31,589		—		31,589		—
Subordinated debt	49,366		—		48,971		—
FHLB advances	110,000		—		109,946		—
Derivative financial instruments	4,131		—		4,131		—

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Commitments and Contingencies (Tables)

6 Months Ended

Jun. 30, 2017

Commitments and Contingencies Disclosure [Abstract]

Schedule of Exposure to Credit Risk By Commitment

Atlantic Capital’s maximum exposure to credit risk for unfunded loan commitments and standby letters of credit at June 30, 2017 and December 31, 2016 was as follows:

	June 30, 2017		December 31, 2016
	(in thousands)
Financial Instruments whose contract amount represents credit risk:
Commitments to extend credit	$	631,250	$	617,432
Standby letters of credit	15,925		16,625
	$	647,175	$	634,057

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Acquisitions and Divestitures (Details) $ in Thousands			3 Months Ended		6 Months Ended
	Dec. 09, 2016 USD ($) branch	Dec. 17, 2015 USD ($) branch agreement	Jun. 30, 2017 USD ($)	Jun. 30, 2016 USD ($)	Jun. 30, 2017 USD ($)	Jun. 30, 2016 USD ($)	Oct. 31, 2015 USD ($) branch
Business Acquisition [Line Items]
Number of agreements to sell branch assets | agreement		2
Number of branches held for sale | branch		7
Gain on disposition of business		$ 3,900			$ 302	$ 3,885
Decrease in deposits	$ (21,900)	(191,000)			$ (101,062)	86,334
Decrease in loans		(34,700)
Decrease in other assets		(8,600)
Write-off for intangibles	300	2,000
Decrease in deposit premium	106	$ 344
Dispositions expense			$ 38	$ 305
Change in finance receivables and other noncurrent assets	$ (27,300)
Cleveland, Tennessee
Business Acquisition [Line Items]
Number of branches held for sale | branch	1
Gain on disposition of business	$ 302
Gross gain on disposition of business	$ 533
First Security Group, Inc
Business Acquisition [Line Items]
Business combination, loans acquired							$ 801,100
Business combinations, deposits assumed							$ 970,000
Merger-related costs			$ 304	$ 1,200		$ 2,000
First Security Group, Inc | Georgia and Tennessee
Business Acquisition [Line Items]
Number of branches | branch							25
Athens Federal
Business Acquisition [Line Items]
Number of branches held for sale | branch		4
Sale premium for branches held for sale, rate		3.50%
First Freedom
Business Acquisition [Line Items]
Number of branches held for sale | branch		3
Sale premium for branches held for sale, rate		2.25%

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Balance Sheet Offsetting (Details) - USD ($) $ in Thousands	Jun. 30, 2017	Dec. 31, 2016
Offsetting Securities Purchased under Agreements to Resell [Abstract]
Reverse repurchase agreements, Gross amounts of recognized assets	$ 17,459	$ 10,896
Reverse repurchase agreements, Gross amounts offset on the Balance Sheet	0	0
Reversed repurchase agreements, Net asset balance	17,459	10,896
Reverse repurchase agreements, Financial instruments	(17,459)	(10,896)
Reverse repurchase agreements, Cash collateral received	0	0
Reverse repurchase agreements, Net amount	0	0
Offsetting Derivative Assets [Abstract]
Derivatives, Gross amounts of recognized assets	4,150	4,310
Derivatives, Gross amounts offset on the Balance Sheet	0	0
Derivatives, Net asset balance	4,150	4,310
Derivatives, Financial instruments	0	0
Derivatives, Cash collateral received	0	0
Derivatives, Net amount	4,150	4,310
Offsetting Derivative Asset, Securities Purchased under Agreements to Resell, Securities Borrowed [Abstract]
Total, Gross amounts of recognized assets	21,609	15,206
Total, Gross amounts offset on the Balance Sheet	0	0
Total, Net asset balance	21,609	15,206
Total, Financial instruments	(17,459)	(10,896)
Total, Cash Cash collateral received	0	0
Total, Net amount	4,150	4,310
Offsetting Securities Sold under Agreements to Repurchase [Abstract]
Repurchase agreements, Gross amounts of recognized liability	0	0
Repurchase agreements, Gross amounts offset on the Balance Sheet	0	0
Repurchase agreements, Net liability balance	0	0
Repurchase agreements, Financial instruments	0	0
Repurchase agreements, Cash collateral pledged	0	0
Repurchase agreements, Net amount	0	0
Offsetting Derivative Liabilities [Abstract]
Derivative, Gross amounts of recognized liability	4,244	4,131
Derivatives, Gross amounts offset on the Balance Sheet	0	0
Derivative, Net liability balance	4,244	4,131
Derivatives, Financial instruments	(2,929)	(1,818)
Derivatives, Cash collateral pledged	(1,315)	(2,313)
Derivatives, Net amount	0	0
Offsetting Derivative Liability, Securities Sold under Agreements to Repurchase, Securities Loaned [Abstract]
Total, Gross amounts of recognized liability	4,244	4,131
Total, Gross amounts offset on the Balance Sheet	0	0
Total, Net liability balance	4,244	4,131
Total, Financial instruments	(2,929)	(1,818)
Total, Cash collateral pledged	(1,315)	(2,313)
Total, Net amount	$ 0	$ 0

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Securities (Securities Available-For-Sale) (Details) - USD ($) $ in Thousands	Jun. 30, 2017	Dec. 31, 2016
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	$ 454,253	$ 357,345
Gross Unrealized Gains	3,657	2,926
Gross Unrealized Losses	(7,637)	(12,566)
Fair Value	450,273	347,705
U.S. Government agencies
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	35,299	21,485
Gross Unrealized Gains	105	24
Gross Unrealized Losses	(279)	(357)
Fair Value	35,125	21,152
U.S. states and political subdivisions
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	97,502	96,908
Gross Unrealized Gains	316	141
Gross Unrealized Losses	(3,650)	(6,877)
Fair Value	94,168	90,172
Trust preferred securities
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	4,741	4,727
Gross Unrealized Gains	0	0
Gross Unrealized Losses	(53)	(202)
Fair Value	4,688	4,525
Corporate debt securities
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	19,777	19,928
Gross Unrealized Gains	119	72
Gross Unrealized Losses	(676)	(769)
Fair Value	19,220	19,231
Residential mortgage-backed securities
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	296,934	214,297
Gross Unrealized Gains	3,117	2,689
Gross Unrealized Losses	(2,979)	(4,361)
Fair Value	$ 297,072	$ 212,625

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Securities (Maturities) (Details) - USD ($) $ in Thousands	Jun. 30, 2017	Dec. 31, 2016
Amortized Cost
Within 1 year	$ 4,140
Over 1 year through 5 years	17,642
5 years to 10 years	60,990
Over 10 years	74,547
Total with Single Maturity Date	157,319
Residential mortgage-backed securities	296,934
Total	454,253
Fair Value
Within 1 year	4,141
Over 1 year through 5 years	17,472
5 years to 10 years	60,448
Over 10 years	71,140
Total with Single Maturity Date	153,201
Residential mortgage-backed securities	297,072
Total	$ 450,273	$ 347,705

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Securities (Unrealized Losses - Available-For-Sale) (Details) - USD ($) $ in Thousands	Jun. 30, 2017	Dec. 31, 2016
Continuous Unrealized Loss Position, Fair Value [Abstract]
Less than 12 months, fair value	$ 206,325	$ 259,053
12 months or greater, fair value	86,094	39,956
Total fair value	292,419	299,009
Continuous Unrealized Loss Position, Unrealized Losses [Abstract]
Less than 12 months, unrealized losses	(5,115)	(11,140)
12 months or greater, unrealized losses	(2,522)	(1,426)
Total unrealized losses	(7,637)	(12,566)
U.S. Government agencies
Continuous Unrealized Loss Position, Fair Value [Abstract]
Less than 12 months, fair value	24,547	12,250
12 months or greater, fair value	2,673	2,881
Total fair value	27,220	15,131
Continuous Unrealized Loss Position, Unrealized Losses [Abstract]
Less than 12 months, unrealized losses	(207)	(263)
12 months or greater, unrealized losses	(72)	(94)
Total unrealized losses	(279)	(357)
U.S. states and political divisions
Continuous Unrealized Loss Position, Fair Value [Abstract]
Less than 12 months, fair value	75,219	87,511
12 months or greater, fair value	3,136	0
Total fair value	78,355	87,511
Continuous Unrealized Loss Position, Unrealized Losses [Abstract]
Less than 12 months, unrealized losses	(3,552)	(6,877)
12 months or greater, unrealized losses	(98)	0
Total unrealized losses	(3,650)	(6,877)
Trust preferred securities
Continuous Unrealized Loss Position, Fair Value [Abstract]
Less than 12 months, fair value	0	0
12 months or greater, fair value	4,688	4,525
Total fair value	4,688	4,525
Continuous Unrealized Loss Position, Unrealized Losses [Abstract]
Less than 12 months, unrealized losses	0	0
12 months or greater, unrealized losses	(53)	(202)
Total unrealized losses	(53)	(202)
Corporate debt securities
Continuous Unrealized Loss Position, Fair Value [Abstract]
Less than 12 months, fair value	0	7,886
12 months or greater, fair value	5,869	0
Total fair value	5,869	7,886
Continuous Unrealized Loss Position, Unrealized Losses [Abstract]
Less than 12 months, unrealized losses	0	(769)
12 months or greater, unrealized losses	(676)	0
Total unrealized losses	(676)	(769)
Residential mortgage-backed securities
Continuous Unrealized Loss Position, Fair Value [Abstract]
Less than 12 months, fair value	106,559	151,406
12 months or greater, fair value	69,728	32,550
Total fair value	176,287	183,956
Continuous Unrealized Loss Position, Unrealized Losses [Abstract]
Less than 12 months, unrealized losses	(1,356)	(3,231)
12 months or greater, unrealized losses	(1,623)	(1,130)
Total unrealized losses	$ (2,979)	$ (4,361)

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Securities (Narrative) (Details)	3 Months Ended		6 Months Ended
	Jun. 30, 2017 USD ($) security	Jun. 30, 2016 USD ($)	Jun. 30, 2017 USD ($) security	Jun. 30, 2016 USD ($)	Dec. 31, 2016 USD ($)
Investments, Debt and Equity Securities [Abstract]
Available-for-sale securities in unrealized loss positions (security) | security	248		248
Impairment charges	$ 0	$ 0	$ 0	$ 0
Investment securities pledged to secure borrowings	$ 99,300,000		$ 99,300,000		$ 104,900,000

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Securities (Sales) (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Investments, Debt and Equity Securities [Abstract]
Proceeds from sales	$ 0	$ 60,150	$ 0	$ 65,103
Gross realized gains	0	416	0	449
Gross realized losses	0	(405)	0	(405)
Net gains on sales of securities	$ 0	$ 11	$ 0	$ 44

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Loans and Allowance for Loan Losses (Summary of Loans) (Details) - USD ($) $ in Thousands	Jun. 30, 2017	Mar. 31, 2017	Dec. 31, 2016	Jun. 30, 2016	Mar. 31, 2016	Dec. 31, 2015
Accounts, Notes, Loans and Financing Receivable [Line Items]
Branch loans held for sale	$ 0		$ 30,917
Other loans held for sale	1,744		4,302
Total loans held for sale	1,744		35,219
Loans	1,966,374		1,984,892
Less net deferred fees and other unearned income	(4,283)		(3,562)
Less allowance for loan losses	(21,870)	$ (19,939)	(20,595)	$ (18,377)	$ (17,608)	$ (18,905)
Loans held for investment, net	1,940,221		1,960,735
Residential mortgages
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans	101,798		101,921
Home equity
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans	79,769		77,358
Other
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans	18,013		21,565
Commercial
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans	1,734,813		1,756,710
Less allowance for loan losses	(20,692)	(18,101)	(18,717)	(16,469)	(15,613)	(16,537)
Commercial | Commercial and industrial
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans	578,888		531,061
Commercial | Commercial real estate
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans	982,875		858,778
Commercial | Construction and land
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans	125,058		219,352
Commercial | Mortgage warehouse participations
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans	47,992		147,519
Residential
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans	181,567		179,279
Less allowance for loan losses	(860)	(1,406)	(1,418)	(1,389)	(1,502)	(1,981)
Consumer
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans	31,981		27,338
Less allowance for loan losses	$ (318)	$ (432)	$ (460)	$ (519)	$ (493)	$ (387)

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Loans and Allowance for Loan Losses (Narrative) (Details) - USD ($) $ in Thousands	Jun. 30, 2017	Dec. 31, 2016
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans pledged as collateral	$ 458,900	$ 474,800
Carrying value of loans	1,966,374	1,984,892
Accretable yield	3,000	3,900
Troubled debt restructurings	6,100	6,600
PCI Loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Carrying value of loans	11,510	15,253
Loans receivable	14,500	18,700
Commercial real estate | PCI Loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Carrying value of loans	3,777	3,770
Commercial
Accounts, Notes, Loans and Financing Receivable [Line Items]
Carrying value of loans	1,734,813	1,756,710
Commercial | Commercial real estate
Accounts, Notes, Loans and Financing Receivable [Line Items]
Carrying value of loans	982,875	858,778
Additional loan amounts	$ 483	$ 387

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Loans and Allowance for Loan Losses (Accretable Yield Movement) (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Accretable Yield Movement Schedule [Roll Forward]
Balance at beginning of period	$ 3,369	$ 2,088	$ 3,467	$ 2,369
Additions due to acquisitions	0	0	0	0
Accretion	(334)	(262)	(779)	(543)
Reclassification of nonaccretable discount due to improvement in expected cash flows	92	0	344	0
Other changes, net	3	0	98	0
Balance at end of period	$ 3,130	$ 1,826	$ 3,130	$ 1,826

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Loans and Allowance for Loan Losses (Allowance Rollforward) (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Allowance for Loan and Lease Losses [Roll Forward]
Beginning balance	$ 19,939	$ 17,608	$ 20,595	$ 18,905
Provision for loan losses	1,980	777	2,614	1,145
Loans charged-off	(65)	(68)	(1,356)	(1,819)
Recoveries	16	60	17	146
Total ending allowance balance	21,870	18,377	21,870	18,377
Commercial
Allowance for Loan and Lease Losses [Roll Forward]
Beginning balance	18,101	15,613	18,717	16,537
Provision for loan losses	2,582	861	2,879	1,525
Loans charged-off	0	(5)	(913)	(1,610)
Recoveries	9	0	9	17
Total ending allowance balance	20,692	16,469	20,692	16,469
Residential
Allowance for Loan and Lease Losses [Roll Forward]
Beginning balance	1,406	1,502	1,418	1,981
Provision for loan losses	(540)	(88)	(506)	(567)
Loans charged-off	(8)	(25)	(54)	(25)
Recoveries	2	0	2	0
Total ending allowance balance	860	1,389	860	1,389
Consumer
Allowance for Loan and Lease Losses [Roll Forward]
Beginning balance	432	493	460	387
Provision for loan losses	(62)	4	241	187
Loans charged-off	(57)	(38)	(389)	(184)
Recoveries	5	60	6	129
Total ending allowance balance	$ 318	$ 519	$ 318	$ 519

XML

Loans and Allowance for Loan Losses (Allowance Additional Information) (Details) - USD ($) $ in Thousands	Jun. 30, 2017	Dec. 31, 2016
Financing Receivable, Allowance for Credit Losses [Line Items]
Allowance for loan losses, Individually evaluated for impairment	$ 3,249	$ 2,684
Allowance for loan losses, Collectively evaluated for impairment	18,546	17,837
Allowance for loan losses, PCI	75	74
Allowance for loan losses, Total ending allowance balance	21,870	20,595
Loans, Individually evaluated for impairment	17,799	14,085
Loans, Collectively evaluated for impairment	1,937,065	1,955,554
Loans, PCI	11,510	15,253
Loans, Total ending allowance balance	1,966,374	1,984,892
Commercial
Financing Receivable, Allowance for Credit Losses [Line Items]
Allowance for loan losses, Individually evaluated for impairment	3,249	2,626
Allowance for loan losses, Collectively evaluated for impairment	17,370	16,018
Allowance for loan losses, PCI	73	73
Allowance for loan losses, Total ending allowance balance	20,692	18,717
Loans, Individually evaluated for impairment	16,931	13,687
Loans, Collectively evaluated for impairment	1,709,411	1,732,324
Loans, PCI	8,471	10,699
Loans, Total ending allowance balance	1,734,813	1,756,710
Residential
Financing Receivable, Allowance for Credit Losses [Line Items]
Allowance for loan losses, Individually evaluated for impairment	0	58
Allowance for loan losses, Collectively evaluated for impairment	860	1,360
Allowance for loan losses, PCI	0	0
Allowance for loan losses, Total ending allowance balance	860	1,418
Loans, Individually evaluated for impairment	868	398
Loans, Collectively evaluated for impairment	177,669	174,338
Loans, PCI	3,030	4,543
Loans, Total ending allowance balance	181,567	179,279
Consumer
Financing Receivable, Allowance for Credit Losses [Line Items]
Allowance for loan losses, Individually evaluated for impairment	0	0
Allowance for loan losses, Collectively evaluated for impairment	316	459
Allowance for loan losses, PCI	2	1
Allowance for loan losses, Total ending allowance balance	318	460
Loans, Individually evaluated for impairment	0	0
Loans, Collectively evaluated for impairment	49,985	48,892
Loans, PCI	9	11
Loans, Total ending allowance balance	$ 49,994	$ 48,903

XML

Loans and Allowance for Loan Losses (Impaired Loans) (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Impaired Financing Receivable, Unpaid Principal Balance [Abstract]
Impaired loans with no related allowance recorded, Unpaid principal balance	$ 8,370	$ 3,400	$ 8,370	$ 3,400
Impaired loans with an allowance recorded, Unpaid principal balance	9,701	1,737	9,701	1,737
Total impaired loans, Unpaid principal balance	18,071	5,137	18,071	5,137
Impaired Financing Receivable, Recorded Investment [Abstract]
Impaired loans with no related allowance recorded, Recorded investment	8,098	3,259	8,098	3,259
Impaired loans with an allowance recorded, Recorded investment	9,701	1,737	9,701	1,737
Total impaired loans, Recorded investment	17,799	4,996	17,799	4,996
Impaired loans with an allowance recorded, Related allowance	3,249	651	3,249	651
Impaired Financing Receivable, Average Recorded Investment [Abstract]
Impaired loans with no related allowance recorded, Average balance of recorded investment while impaired	8,108	3,224	8,692	3,187
Impaired loans with an allowance recorded, Average balance of recorded investment while impaired	9,742	1,737	9,785	1,737
Total impaired loans, Average balance of recorded investment while impaired	17,850	4,961	18,477	4,924
Impaired Financing Receivable, Interest Income, Accrual Method [Abstract]
Impaired loans with no related allowance recorded, Interest income recognized during impairment	33	57	50	93
Impaired loans with an allowance recorded, Interest income recognized during impairment	144	6	259	27
Total impaired loans, Interest income recognized during impairment	177	63	309	120
Commercial | Commercial and industrial
Impaired Financing Receivable, Unpaid Principal Balance [Abstract]
Impaired loans with no related allowance recorded, Unpaid principal balance	4,962	2,843	4,962	2,843
Impaired loans with an allowance recorded, Unpaid principal balance	9,122	78	9,122	78
Impaired Financing Receivable, Recorded Investment [Abstract]
Impaired loans with no related allowance recorded, Recorded investment	4,899	2,843	4,899	2,843
Impaired loans with an allowance recorded, Recorded investment	9,122	78	9,122	78
Impaired loans with an allowance recorded, Related allowance	3,106	390	3,106	390
Impaired Financing Receivable, Average Recorded Investment [Abstract]
Impaired loans with no related allowance recorded, Average balance of recorded investment while impaired	4,866	2,811	5,346	2,774
Impaired loans with an allowance recorded, Average balance of recorded investment while impaired	9,160	78	9,200	78
Impaired Financing Receivable, Interest Income, Accrual Method [Abstract]
Impaired loans with no related allowance recorded, Interest income recognized during impairment	13	36	30	72
Impaired loans with an allowance recorded, Interest income recognized during impairment	138	0	246	0
Commercial | Commercial real estate
Impaired Financing Receivable, Unpaid Principal Balance [Abstract]
Impaired loans with no related allowance recorded, Unpaid principal balance	2,494	557	2,494	557
Impaired loans with an allowance recorded, Unpaid principal balance	579	1,659	579	1,659
Impaired Financing Receivable, Recorded Investment [Abstract]
Impaired loans with no related allowance recorded, Recorded investment	2,331	416	2,331	416
Impaired loans with an allowance recorded, Recorded investment	579	1,659	579	1,659
Impaired loans with an allowance recorded, Related allowance	143	261	143	261
Impaired Financing Receivable, Average Recorded Investment [Abstract]
Impaired loans with no related allowance recorded, Average balance of recorded investment while impaired	2,361	413	2,439	413
Impaired loans with an allowance recorded, Average balance of recorded investment while impaired	582	1,659	585	1,659
Impaired Financing Receivable, Interest Income, Accrual Method [Abstract]
Impaired loans with no related allowance recorded, Interest income recognized during impairment	20	21	20	21
Impaired loans with an allowance recorded, Interest income recognized during impairment	6	6	13	27
Commercial | Construction and land
Impaired Financing Receivable, Unpaid Principal Balance [Abstract]
Impaired loans with no related allowance recorded, Unpaid principal balance	0	0	0	0
Impaired loans with an allowance recorded, Unpaid principal balance	0	0	0	0
Impaired Financing Receivable, Recorded Investment [Abstract]
Impaired loans with no related allowance recorded, Recorded investment	0	0	0	0
Impaired loans with an allowance recorded, Recorded investment	0	0	0	0
Impaired loans with an allowance recorded, Related allowance	0	0	0	0
Impaired Financing Receivable, Average Recorded Investment [Abstract]
Impaired loans with no related allowance recorded, Average balance of recorded investment while impaired	0	0	0	0
Impaired loans with an allowance recorded, Average balance of recorded investment while impaired	0	0	0	0
Impaired Financing Receivable, Interest Income, Accrual Method [Abstract]
Impaired loans with no related allowance recorded, Interest income recognized during impairment	0	0	0	0
Impaired loans with an allowance recorded, Interest income recognized during impairment	0	0	0	0
Commercial | Mortgage warehouse participations
Impaired Financing Receivable, Unpaid Principal Balance [Abstract]
Impaired loans with no related allowance recorded, Unpaid principal balance	0	0	0	0
Impaired loans with an allowance recorded, Unpaid principal balance	0	0	0	0
Impaired Financing Receivable, Recorded Investment [Abstract]
Impaired loans with no related allowance recorded, Recorded investment	0	0	0	0
Impaired loans with an allowance recorded, Recorded investment	0	0	0	0
Impaired loans with an allowance recorded, Related allowance	0	0	0	0
Impaired Financing Receivable, Average Recorded Investment [Abstract]
Impaired loans with no related allowance recorded, Average balance of recorded investment while impaired	0	0	0	0
Impaired loans with an allowance recorded, Average balance of recorded investment while impaired	0	0	0	0
Impaired Financing Receivable, Interest Income, Accrual Method [Abstract]
Impaired loans with no related allowance recorded, Interest income recognized during impairment	0	0	0	0
Impaired loans with an allowance recorded, Interest income recognized during impairment	0	0	0	0
Residential | Residential mortgages
Impaired Financing Receivable, Unpaid Principal Balance [Abstract]
Impaired loans with no related allowance recorded, Unpaid principal balance	380	0	380	0
Impaired loans with an allowance recorded, Unpaid principal balance	0	0	0	0
Impaired Financing Receivable, Recorded Investment [Abstract]
Impaired loans with no related allowance recorded, Recorded investment	334	0	334	0
Impaired loans with an allowance recorded, Recorded investment	0	0	0	0
Impaired loans with an allowance recorded, Related allowance	0	0	0	0
Impaired Financing Receivable, Average Recorded Investment [Abstract]
Impaired loans with no related allowance recorded, Average balance of recorded investment while impaired	340	0	366	0
Impaired loans with an allowance recorded, Average balance of recorded investment while impaired	0	0	0	0
Impaired Financing Receivable, Interest Income, Accrual Method [Abstract]
Impaired loans with no related allowance recorded, Interest income recognized during impairment	0	0	0	0
Impaired loans with an allowance recorded, Interest income recognized during impairment	0	0	0	0
Residential | Home equity
Impaired Financing Receivable, Unpaid Principal Balance [Abstract]
Impaired loans with no related allowance recorded, Unpaid principal balance	534	0	534	0
Impaired loans with an allowance recorded, Unpaid principal balance	0	0	0	0
Impaired Financing Receivable, Recorded Investment [Abstract]
Impaired loans with no related allowance recorded, Recorded investment	534	0	534	0
Impaired loans with an allowance recorded, Recorded investment	0	0	0	0
Impaired loans with an allowance recorded, Related allowance	0	0	0	0
Impaired Financing Receivable, Average Recorded Investment [Abstract]
Impaired loans with no related allowance recorded, Average balance of recorded investment while impaired	541	0	541	0
Impaired loans with an allowance recorded, Average balance of recorded investment while impaired	0	0	0	0
Impaired Financing Receivable, Interest Income, Accrual Method [Abstract]
Impaired loans with no related allowance recorded, Interest income recognized during impairment	0	0	0	0
Impaired loans with an allowance recorded, Interest income recognized during impairment	0	0	0	0
Consumer
Impaired Financing Receivable, Unpaid Principal Balance [Abstract]
Impaired loans with no related allowance recorded, Unpaid principal balance	0	0	0	0
Impaired loans with an allowance recorded, Unpaid principal balance	0	0	0	0
Impaired Financing Receivable, Recorded Investment [Abstract]
Impaired loans with no related allowance recorded, Recorded investment	0	0	0	0
Impaired loans with an allowance recorded, Recorded investment	0	0	0	0
Impaired loans with an allowance recorded, Related allowance	0	0	0	0
Impaired Financing Receivable, Average Recorded Investment [Abstract]
Impaired loans with no related allowance recorded, Average balance of recorded investment while impaired	0	0	0	0
Impaired loans with an allowance recorded, Average balance of recorded investment while impaired	0	0	0	0
Impaired Financing Receivable, Interest Income, Accrual Method [Abstract]
Impaired loans with no related allowance recorded, Interest income recognized during impairment	0	0	0	0
Impaired loans with an allowance recorded, Interest income recognized during impairment	$ 0	$ 0	$ 0	$ 0

XML

Loans and Allowance for Loan Losses (Risk Category of Loan by Class of Loan) (Details) - USD ($) $ in Thousands	Jun. 30, 2017	Dec. 31, 2016
Financing Receivable, Impaired [Line Items]
Financing receivable, gross	$ 1,966,374	$ 1,984,892
Non-PCI Loans
Financing Receivable, Impaired [Line Items]
Financing receivable, gross	1,954,864	1,969,639
Non-PCI Loans | Pass
Financing Receivable, Impaired [Line Items]
Financing receivable, gross	1,885,676	1,921,412
Non-PCI Loans | Special Mention
Financing Receivable, Impaired [Line Items]
Financing receivable, gross	18,404	14,406
Non-PCI Loans | Substandard | Accruing Loans
Financing Receivable, Impaired [Line Items]
Financing receivable, gross	38,875	33,200
Non-PCI Loans | Substandard | Nonaccruing Loans
Financing Receivable, Impaired [Line Items]
Financing receivable, gross	11,909	150
Non-PCI Loans | Doubtful | Nonaccruing Loans
Financing Receivable, Impaired [Line Items]
Financing receivable, gross	0	471
PCI Loans
Financing Receivable, Impaired [Line Items]
Financing receivable, gross	11,510	15,253
PCI Loans | Commercial and industrial
Financing Receivable, Impaired [Line Items]
Financing receivable, gross	4,254	6,411
PCI Loans | Commercial real estate
Financing Receivable, Impaired [Line Items]
Financing receivable, gross	3,777	3,770
PCI Loans | Construction and land
Financing Receivable, Impaired [Line Items]
Financing receivable, gross	440	518
PCI Loans | Pass
Financing Receivable, Impaired [Line Items]
Financing receivable, gross	6,846	5,780
PCI Loans | Pass | Commercial and industrial
Financing Receivable, Impaired [Line Items]
Financing receivable, gross	3,200	4,650
PCI Loans | Pass | Commercial real estate
Financing Receivable, Impaired [Line Items]
Financing receivable, gross	3,099	477
PCI Loans | Pass | Construction and land
Financing Receivable, Impaired [Line Items]
Financing receivable, gross	396	229
PCI Loans | Special Mention
Financing Receivable, Impaired [Line Items]
Financing receivable, gross	2,081	2,613
PCI Loans | Special Mention | Commercial and industrial
Financing Receivable, Impaired [Line Items]
Financing receivable, gross	272	299
PCI Loans | Special Mention | Commercial real estate
Financing Receivable, Impaired [Line Items]
Financing receivable, gross	250	240
PCI Loans | Special Mention | Construction and land
Financing Receivable, Impaired [Line Items]
Financing receivable, gross	7	8
PCI Loans | Substandard | Accruing Loans
Financing Receivable, Impaired [Line Items]
Financing receivable, gross	2,461	5,201
PCI Loans | Substandard | Accruing Loans | Commercial and industrial
Financing Receivable, Impaired [Line Items]
Financing receivable, gross	782	614
PCI Loans | Substandard | Accruing Loans | Commercial real estate
Financing Receivable, Impaired [Line Items]
Financing receivable, gross	306	2,716
PCI Loans | Substandard | Accruing Loans | Construction and land
Financing Receivable, Impaired [Line Items]
Financing receivable, gross	37	281
PCI Loans | Substandard | Nonaccruing Loans
Financing Receivable, Impaired [Line Items]
Financing receivable, gross	0	0
PCI Loans | Substandard | Nonaccruing Loans | Commercial and industrial
Financing Receivable, Impaired [Line Items]
Financing receivable, gross	0	0
PCI Loans | Substandard | Nonaccruing Loans | Commercial real estate
Financing Receivable, Impaired [Line Items]
Financing receivable, gross	0	0
PCI Loans | Substandard | Nonaccruing Loans | Construction and land
Financing Receivable, Impaired [Line Items]
Financing receivable, gross	0	0
PCI Loans | Doubtful | Nonaccruing Loans
Financing Receivable, Impaired [Line Items]
Financing receivable, gross	122	1,659
PCI Loans | Doubtful | Nonaccruing Loans | Commercial and industrial
Financing Receivable, Impaired [Line Items]
Financing receivable, gross	0	848
PCI Loans | Doubtful | Nonaccruing Loans | Commercial real estate
Financing Receivable, Impaired [Line Items]
Financing receivable, gross	122	337
PCI Loans | Doubtful | Nonaccruing Loans | Construction and land
Financing Receivable, Impaired [Line Items]
Financing receivable, gross	0	0
Commercial
Financing Receivable, Impaired [Line Items]
Financing receivable, gross	1,734,813	1,756,710
Commercial | Commercial and industrial
Financing Receivable, Impaired [Line Items]
Financing receivable, gross	578,888	531,061
Commercial | Commercial real estate
Financing Receivable, Impaired [Line Items]
Financing receivable, gross	982,875	858,778
Commercial | Construction and land
Financing Receivable, Impaired [Line Items]
Financing receivable, gross	125,058	219,352
Commercial | Mortgage warehouse participations
Financing Receivable, Impaired [Line Items]
Financing receivable, gross	47,992	147,519
Commercial | Non-PCI Loans | Commercial and industrial
Financing Receivable, Impaired [Line Items]
Financing receivable, gross	574,634	524,650
Commercial | Non-PCI Loans | Commercial real estate
Financing Receivable, Impaired [Line Items]
Financing receivable, gross	979,098	855,008
Commercial | Non-PCI Loans | Construction and land
Financing Receivable, Impaired [Line Items]
Financing receivable, gross	124,618	218,834
Commercial | Non-PCI Loans | Mortgage warehouse participations
Financing Receivable, Impaired [Line Items]
Financing receivable, gross	47,992	147,519
Commercial | Non-PCI Loans | Pass | Commercial and industrial
Financing Receivable, Impaired [Line Items]
Financing receivable, gross	529,268	494,617
Commercial | Non-PCI Loans | Pass | Commercial real estate
Financing Receivable, Impaired [Line Items]
Financing receivable, gross	964,573	843,924
Commercial | Non-PCI Loans | Pass | Construction and land
Financing Receivable, Impaired [Line Items]
Financing receivable, gross	119,876	213,981
Commercial | Non-PCI Loans | Pass | Mortgage warehouse participations
Financing Receivable, Impaired [Line Items]
Financing receivable, gross	47,992	147,519
Commercial | Non-PCI Loans | Special Mention | Commercial and industrial
Financing Receivable, Impaired [Line Items]
Financing receivable, gross	4,882	3,160
Commercial | Non-PCI Loans | Special Mention | Commercial real estate
Financing Receivable, Impaired [Line Items]
Financing receivable, gross	7,254	5,513
Commercial | Non-PCI Loans | Special Mention | Construction and land
Financing Receivable, Impaired [Line Items]
Financing receivable, gross	4,722	4,789
Commercial | Non-PCI Loans | Special Mention | Mortgage warehouse participations
Financing Receivable, Impaired [Line Items]
Financing receivable, gross	0	0
Commercial | Non-PCI Loans | Substandard | Accruing Loans | Commercial and industrial
Financing Receivable, Impaired [Line Items]
Financing receivable, gross	32,249	26,399
Commercial | Non-PCI Loans | Substandard | Accruing Loans | Commercial real estate
Financing Receivable, Impaired [Line Items]
Financing receivable, gross	4,961	5,571
Commercial | Non-PCI Loans | Substandard | Accruing Loans | Construction and land
Financing Receivable, Impaired [Line Items]
Financing receivable, gross	0	64
Commercial | Non-PCI Loans | Substandard | Accruing Loans | Mortgage warehouse participations
Financing Receivable, Impaired [Line Items]
Financing receivable, gross	0	0
Commercial | Non-PCI Loans | Substandard | Nonaccruing Loans | Commercial and industrial
Financing Receivable, Impaired [Line Items]
Financing receivable, gross	8,235	3
Commercial | Non-PCI Loans | Substandard | Nonaccruing Loans | Commercial real estate
Financing Receivable, Impaired [Line Items]
Financing receivable, gross	2,310	0
Commercial | Non-PCI Loans | Substandard | Nonaccruing Loans | Construction and land
Financing Receivable, Impaired [Line Items]
Financing receivable, gross	20	0
Commercial | Non-PCI Loans | Substandard | Nonaccruing Loans | Mortgage warehouse participations
Financing Receivable, Impaired [Line Items]
Financing receivable, gross	0	0
Commercial | Non-PCI Loans | Doubtful | Nonaccruing Loans | Commercial and industrial
Financing Receivable, Impaired [Line Items]
Financing receivable, gross	0	471
Commercial | Non-PCI Loans | Doubtful | Nonaccruing Loans | Commercial real estate
Financing Receivable, Impaired [Line Items]
Financing receivable, gross	0	0
Commercial | Non-PCI Loans | Doubtful | Nonaccruing Loans | Construction and land
Financing Receivable, Impaired [Line Items]
Financing receivable, gross	0	0
Commercial | Non-PCI Loans | Doubtful | Nonaccruing Loans | Mortgage warehouse participations
Financing Receivable, Impaired [Line Items]
Financing receivable, gross	0	0
Commercial | PCI Loans | Mortgage warehouse participations
Financing Receivable, Impaired [Line Items]
Financing receivable, gross	0	0
Commercial | PCI Loans | Pass | Mortgage warehouse participations
Financing Receivable, Impaired [Line Items]
Financing receivable, gross	0	0
Commercial | PCI Loans | Special Mention | Mortgage warehouse participations
Financing Receivable, Impaired [Line Items]
Financing receivable, gross	0	0
Commercial | PCI Loans | Substandard | Accruing Loans | Mortgage warehouse participations
Financing Receivable, Impaired [Line Items]
Financing receivable, gross	0	0
Commercial | PCI Loans | Substandard | Nonaccruing Loans | Mortgage warehouse participations
Financing Receivable, Impaired [Line Items]
Financing receivable, gross	0	0
Commercial | PCI Loans | Doubtful | Nonaccruing Loans | Mortgage warehouse participations
Financing Receivable, Impaired [Line Items]
Financing receivable, gross	0	0
Residential
Financing Receivable, Impaired [Line Items]
Financing receivable, gross	181,567	179,279
Residential | Residential mortgages
Financing Receivable, Impaired [Line Items]
Financing receivable, gross	101,798	101,921
Residential | Home equity
Financing Receivable, Impaired [Line Items]
Financing receivable, gross	79,769	77,358
Residential | Non-PCI Loans | Residential mortgages
Financing Receivable, Impaired [Line Items]
Financing receivable, gross	99,821	99,140
Residential | Non-PCI Loans | Home equity
Financing Receivable, Impaired [Line Items]
Financing receivable, gross	78,716	75,596
Residential | Non-PCI Loans | Pass | Residential mortgages
Financing Receivable, Impaired [Line Items]
Financing receivable, gross	96,824	97,660
Residential | Non-PCI Loans | Pass | Home equity
Financing Receivable, Impaired [Line Items]
Financing receivable, gross	77,461	75,031
Residential | Non-PCI Loans | Special Mention | Residential mortgages
Financing Receivable, Impaired [Line Items]
Financing receivable, gross	1,407	586
Residential | Non-PCI Loans | Special Mention | Home equity
Financing Receivable, Impaired [Line Items]
Financing receivable, gross	42	168
Residential | Non-PCI Loans | Substandard | Accruing Loans | Residential mortgages
Financing Receivable, Impaired [Line Items]
Financing receivable, gross	959	747
Residential | Non-PCI Loans | Substandard | Accruing Loans | Home equity
Financing Receivable, Impaired [Line Items]
Financing receivable, gross	500	397
Residential | Non-PCI Loans | Substandard | Nonaccruing Loans | Residential mortgages
Financing Receivable, Impaired [Line Items]
Financing receivable, gross	631	147
Residential | Non-PCI Loans | Substandard | Nonaccruing Loans | Home equity
Financing Receivable, Impaired [Line Items]
Financing receivable, gross	713	0
Residential | Non-PCI Loans | Doubtful | Nonaccruing Loans | Residential mortgages
Financing Receivable, Impaired [Line Items]
Financing receivable, gross	0	0
Residential | Non-PCI Loans | Doubtful | Nonaccruing Loans | Home equity
Financing Receivable, Impaired [Line Items]
Financing receivable, gross	0	0
Residential | PCI Loans | Residential mortgages
Financing Receivable, Impaired [Line Items]
Financing receivable, gross	1,977	2,781
Residential | PCI Loans | Home equity
Financing Receivable, Impaired [Line Items]
Financing receivable, gross	1,053	1,762
Residential | PCI Loans | Pass | Residential mortgages
Financing Receivable, Impaired [Line Items]
Financing receivable, gross	117	59
Residential | PCI Loans | Pass | Home equity
Financing Receivable, Impaired [Line Items]
Financing receivable, gross	33	364
Residential | PCI Loans | Special Mention | Residential mortgages
Financing Receivable, Impaired [Line Items]
Financing receivable, gross	902	1,232
Residential | PCI Loans | Special Mention | Home equity
Financing Receivable, Impaired [Line Items]
Financing receivable, gross	649	834
Residential | PCI Loans | Substandard | Accruing Loans | Residential mortgages
Financing Receivable, Impaired [Line Items]
Financing receivable, gross	958	1,016
Residential | PCI Loans | Substandard | Accruing Loans | Home equity
Financing Receivable, Impaired [Line Items]
Financing receivable, gross	371	564
Residential | PCI Loans | Substandard | Nonaccruing Loans | Residential mortgages
Financing Receivable, Impaired [Line Items]
Financing receivable, gross	0	0
Residential | PCI Loans | Substandard | Nonaccruing Loans | Home equity
Financing Receivable, Impaired [Line Items]
Financing receivable, gross	0	0
Residential | PCI Loans | Doubtful | Nonaccruing Loans | Residential mortgages
Financing Receivable, Impaired [Line Items]
Financing receivable, gross	0	474
Residential | PCI Loans | Doubtful | Nonaccruing Loans | Home equity
Financing Receivable, Impaired [Line Items]
Financing receivable, gross	0	0
Consumer
Financing Receivable, Impaired [Line Items]
Financing receivable, gross	49,994	48,903
Consumer | Other
Financing Receivable, Impaired [Line Items]
Financing receivable, gross	49,994	48,903
Consumer | Non-PCI Loans | Other
Financing Receivable, Impaired [Line Items]
Financing receivable, gross	49,985	48,892
Consumer | Non-PCI Loans | Pass | Other
Financing Receivable, Impaired [Line Items]
Financing receivable, gross	49,682	48,680
Consumer | Non-PCI Loans | Special Mention | Other
Financing Receivable, Impaired [Line Items]
Financing receivable, gross	97	190
Consumer | Non-PCI Loans | Substandard | Accruing Loans | Other
Financing Receivable, Impaired [Line Items]
Financing receivable, gross	206	22
Consumer | Non-PCI Loans | Substandard | Nonaccruing Loans | Other
Financing Receivable, Impaired [Line Items]
Financing receivable, gross	0	0
Consumer | Non-PCI Loans | Doubtful | Nonaccruing Loans | Other
Financing Receivable, Impaired [Line Items]
Financing receivable, gross	0	0
Consumer | PCI Loans | Other
Financing Receivable, Impaired [Line Items]
Financing receivable, gross	9	11
Consumer | PCI Loans | Pass | Other
Financing Receivable, Impaired [Line Items]
Financing receivable, gross	1	1
Consumer | PCI Loans | Special Mention | Other
Financing Receivable, Impaired [Line Items]
Financing receivable, gross	1	0
Consumer | PCI Loans | Substandard | Accruing Loans | Other
Financing Receivable, Impaired [Line Items]
Financing receivable, gross	7	10
Consumer | PCI Loans | Substandard | Nonaccruing Loans | Other
Financing Receivable, Impaired [Line Items]
Financing receivable, gross	0	0
Consumer | PCI Loans | Doubtful | Nonaccruing Loans | Other
Financing Receivable, Impaired [Line Items]
Financing receivable, gross	$ 0	$ 0

XML

Loans and Allowance for Loan Losses (Financing Receivables Past Due) (Details) - USD ($) $ in Thousands	Jun. 30, 2017	Dec. 31, 2016
Financing Receivable, Recorded Investment, Past Due [Line Items]
Accruing Current	$ 1,941,830	$ 1,960,222
Nonaccruing	11,909	621
Loans, Total ending allowance balance	1,966,374	1,984,892
Commercial
Financing Receivable, Recorded Investment, Past Due [Line Items]
Loans, Total ending allowance balance	1,734,813	1,756,710
Commercial | Commercial and industrial
Financing Receivable, Recorded Investment, Past Due [Line Items]
Accruing Current	565,802	520,908
Nonaccruing	8,235	474
Loans, Total ending allowance balance	578,888	531,061
Commercial | Commercial real estate
Financing Receivable, Recorded Investment, Past Due [Line Items]
Accruing Current	976,640	852,626
Nonaccruing	2,310	0
Loans, Total ending allowance balance	982,875	858,778
Commercial | Construction and land
Financing Receivable, Recorded Investment, Past Due [Line Items]
Accruing Current	124,598	218,290
Nonaccruing	20	0
Loans, Total ending allowance balance	125,058	219,352
Commercial | Mortgage warehouse participations
Financing Receivable, Recorded Investment, Past Due [Line Items]
Accruing Current	47,992	147,519
Nonaccruing	0	0
Loans, Total ending allowance balance	47,992	147,519
Residential
Financing Receivable, Recorded Investment, Past Due [Line Items]
Loans, Total ending allowance balance	181,567	179,279
Residential | Residential mortgages
Financing Receivable, Recorded Investment, Past Due [Line Items]
Accruing Current	98,851	97,901
Nonaccruing	631	147
Loans, Total ending allowance balance	101,798	101,921
Residential | Home equity
Financing Receivable, Recorded Investment, Past Due [Line Items]
Accruing Current	77,963	74,420
Nonaccruing	713	0
Loans, Total ending allowance balance	79,769	77,358
Consumer
Financing Receivable, Recorded Investment, Past Due [Line Items]
Loans, Total ending allowance balance	49,994	48,903
Consumer | Other
Financing Receivable, Recorded Investment, Past Due [Line Items]
Accruing Current	49,984	48,558
Nonaccruing	0	0
Loans, Total ending allowance balance	49,994	48,903
Accruing 30-89 Days Past Due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Accruing past due	734	7,802
Accruing 30-89 Days Past Due | Commercial | Commercial and industrial
Financing Receivable, Recorded Investment, Past Due [Line Items]
Accruing past due	472	3,079
Accruing 30-89 Days Past Due | Commercial | Commercial real estate
Financing Receivable, Recorded Investment, Past Due [Line Items]
Accruing past due	0	2,382
Accruing 30-89 Days Past Due | Commercial | Construction and land
Financing Receivable, Recorded Investment, Past Due [Line Items]
Accruing past due	0	544
Accruing 30-89 Days Past Due | Commercial | Mortgage warehouse participations
Financing Receivable, Recorded Investment, Past Due [Line Items]
Accruing past due	0	0
Accruing 30-89 Days Past Due | Residential | Residential mortgages
Financing Receivable, Recorded Investment, Past Due [Line Items]
Accruing past due	261	664
Accruing 30-89 Days Past Due | Residential | Home equity
Financing Receivable, Recorded Investment, Past Due [Line Items]
Accruing past due	0	884
Accruing 30-89 Days Past Due | Consumer | Other
Financing Receivable, Recorded Investment, Past Due [Line Items]
Accruing past due	1	249
Accruing 90 Days Past Due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Accruing past due	391	994
Accruing 90 Days Past Due | Commercial | Commercial and industrial
Financing Receivable, Recorded Investment, Past Due [Line Items]
Accruing past due	125	189
Accruing 90 Days Past Due | Commercial | Commercial real estate
Financing Receivable, Recorded Investment, Past Due [Line Items]
Accruing past due	148	0
Accruing 90 Days Past Due | Commercial | Construction and land
Financing Receivable, Recorded Investment, Past Due [Line Items]
Accruing past due	0	0
Accruing 90 Days Past Due | Commercial | Mortgage warehouse participations
Financing Receivable, Recorded Investment, Past Due [Line Items]
Accruing past due	0	0
Accruing 90 Days Past Due | Residential | Residential mortgages
Financing Receivable, Recorded Investment, Past Due [Line Items]
Accruing past due	78	428
Accruing 90 Days Past Due | Residential | Home equity
Financing Receivable, Recorded Investment, Past Due [Line Items]
Accruing past due	40	292
Accruing 90 Days Past Due | Consumer | Other
Financing Receivable, Recorded Investment, Past Due [Line Items]
Accruing past due	0	85
PCI Loans
Financing Receivable, Recorded Investment, Past Due [Line Items]
Accruing Current	11,510	15,253
Loans, Total ending allowance balance	11,510	15,253
PCI Loans | Commercial and industrial
Financing Receivable, Recorded Investment, Past Due [Line Items]
Loans, Total ending allowance balance	4,254	6,411
PCI Loans | Commercial real estate
Financing Receivable, Recorded Investment, Past Due [Line Items]
Loans, Total ending allowance balance	3,777	3,770
PCI Loans | Construction and land
Financing Receivable, Recorded Investment, Past Due [Line Items]
Loans, Total ending allowance balance	440	518
PCI Loans | Commercial | Commercial and industrial
Financing Receivable, Recorded Investment, Past Due [Line Items]
Accruing Current	4,254	6,411
PCI Loans | Commercial | Commercial real estate
Financing Receivable, Recorded Investment, Past Due [Line Items]
Accruing Current	3,777	3,770
PCI Loans | Commercial | Construction and land
Financing Receivable, Recorded Investment, Past Due [Line Items]
Accruing Current	440	518
PCI Loans | Commercial | Mortgage warehouse participations
Financing Receivable, Recorded Investment, Past Due [Line Items]
Accruing Current	0	0
Loans, Total ending allowance balance	0	0
PCI Loans | Residential | Residential mortgages
Financing Receivable, Recorded Investment, Past Due [Line Items]
Accruing Current	1,977	2,781
Loans, Total ending allowance balance	1,977	2,781
PCI Loans | Residential | Home equity
Financing Receivable, Recorded Investment, Past Due [Line Items]
Accruing Current	1,053	1,762
Loans, Total ending allowance balance	1,053	1,762
PCI Loans | Consumer | Other
Financing Receivable, Recorded Investment, Past Due [Line Items]
Accruing Current	9	11
Loans, Total ending allowance balance	$ 9	$ 11

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Goodwill and Intangible Assets (Details) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016	Mar. 31, 2017	Dec. 31, 2016	Mar. 31, 2016	Dec. 31, 2015
Finite-Lived Intangible Assets [Line Items]
Total other intangibles, net	$ 6,687,000		$ 6,687,000			$ 7,808,000
Goodwill	21,759,000	$ 22,446,000	21,759,000	$ 22,446,000	$ 21,759,000	21,759,000	$ 22,446,000	$ 23,352,000
Total goodwill and other intangible assets, net	28,446,000		28,446,000			29,567,000
Goodwill purchase accounting adjustments		0	0	(906,000)
Goodwill impairment	0	0	0	0
Core Deposits
Finite-Lived Intangible Assets [Line Items]
Core deposit intangible	9,544,000		9,544,000			9,544,000
Less: accumulated amortization	(3,866,000)		(3,866,000)			(2,971,000)
Less: impairment related to divested branches	(2,286,000)		(2,286,000)			(1,949,000)
Core deposit intangible, net	3,392,000	5,639,000	3,392,000	5,639,000	$ 4,154,000	4,624,000	$ 8,256,000	$ 9,018,000
Servicing assets, net	9,544,000		9,544,000			9,544,000
Goodwill purchase accounting adjustments		$ 0		$ 0
Servicing Assets
Finite-Lived Intangible Assets [Line Items]
Core deposit intangible	3,295,000		3,295,000			3,184,000
Servicing assets, net	$ 3,295,000		$ 3,295,000			$ 3,184,000

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Goodwill and Intangible Assets (Goodwill and Other Intangible Assets Activity) (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Goodwill
Balance, beginning of period	$ 21,759	$ 22,446	$ 21,759	$ 23,352
Measurement period adjustments		0	0	906
Balance, end of period	21,759	22,446	21,759	22,446
Core Deposit Intangible
Amortization	(425)	(668)	(895)	(1,430)
Intangible Assets, Net (Including Goodwill) [Abstract]
Balance, beginning of period	25,913	30,702	26,383	32,370
Amortization	(425)	(668)	(895)	(1,430)
Impairment, due to branch divestiture	(337)	(1,949)	(337)	(1,949)
Measurement period adjustments		0	0	906
Balance, end of period	25,151	28,085	25,151	28,085
Core Deposits
Goodwill
Measurement period adjustments		0		0
Core Deposit Intangible
Balance, beginning of period	4,154	8,256	4,624	9,018
Amortization	(425)	(668)	(895)	(1,430)
Balance, end of period	3,392	5,639	3,392	5,639
Intangible Assets, Net (Including Goodwill) [Abstract]
Amortization	(425)	(668)	(895)	(1,430)
Impairment, due to branch divestiture	$ (337)	(1,949)	$ (337)	(1,949)
Measurement period adjustments		$ 0		$ 0

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Servicing Assets (Narrative) (Details) - USD ($) $ in Millions	Jun. 30, 2017	Dec. 31, 2016
Transfers and Servicing [Abstract]
Loans sold and serviced	$ 122.8	$ 107.0

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Servicing Assets (SBA) (Details) - SBA Loan Servicing Assets - Commercial Loan - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
SBA Loan Servicing Rights
Beginning carrying value, net	$ 2,495	$ 1,860	$ 2,359	$ 1,687
Additions	326	359	593	561
Amortization	(257)	(102)	(388)	(131)
Impairment	0	0	0	0
Ending carrying value	$ 2,564	$ 2,117	$ 2,564	$ 2,117

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Servicing Assets (Sensitivity of the Fair Value to Immediate Changes in Key Economic Assumptions) (Details) - Commercial - USD ($) $ in Thousands	6 Months Ended	12 Months Ended
	Jun. 30, 2017	Dec. 31, 2016
SBA Loan Servicing Assets
Sensitivity Analysis of Fair Value of Interests Continued to be Held by Transferor, Servicing Assets or Liabilities, Impact of Adverse Change in Assumption [Line Items]
Fair value of retained servicing assets	$ 2,822	$ 2,474
Weighted average life	6 years 8 months 7 days	6 years 6 months 8 days
Prepayment speed:	7.76%	7.67%
Decline in fair value due to a 10% adverse change	$ (100)	$ (89)
Decline in fair value due to a 20% adverse change	$ (173)	$ (151)
Weighted average discount rate	12.22%	12.27%
Decline in fair value due to a 100 bps adverse change	$ (109)	$ (97)
Decline in fair value due to a 200 bps adverse change	(189)	(168)
TriNet Servicing Assets
Sensitivity Analysis of Fair Value of Interests Continued to be Held by Transferor, Servicing Assets or Liabilities, Impact of Adverse Change in Assumption [Line Items]
Fair value of retained servicing assets	$ 788	$ 840
Weighted average life	8 years 5 months 10 days	8 years 5 months 20 days
Prepayment speed:	5.00%	5.00%
Decline in fair value due to a 10% adverse change	$ (8)	$ (12)
Decline in fair value due to a 20% adverse change	$ (23)	$ (24)
Weighted average discount rate	8.00%	8.00%
Decline in fair value due to a 100 bps adverse change	$ (22)	$ (25)
Decline in fair value due to a 200 bps adverse change	$ (43)	$ (49)

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Servicing Assets (TriNet) (Details) - TriNet Servicing Assets - Commercial Loan - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Servicing Rights
Beginning carrying value, net	$ 778	$ 1,352	$ 825	$ 1,175
Additions	0	179	0	406
Amortization	(47)	(60)	(94)	(110)
Impairment	0	0	0	0
Ending carrying value	$ 731	$ 1,471	$ 731	$ 1,471

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Other Comprehensive Income (Loss) (Summary of Changes) (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
After-Tax Amount
Accumulated other comprehensive income (loss) beginning of period			$ 303,658	$ 287,992
Other comprehensive income, net of tax	$ 3,137	$ 1,822	3,355	5,010
Accumulated other comprehensive income (loss) end of period	319,435	304,066	319,435	304,066
Reclassification adjustment for net realized gains (losses) on investment securities available-for-sale
Pre-Tax Amount
Unrealized net gains (losses) on investment securities available-for-sale	5,069	2,703	5,660	6,978
Reclassification adjustment for net realized gains (losses) on investment securities available-for-sale	0	(11)	0	(44)
Income Tax (Expense) Benefit
Unrealized net gains (losses) on investment securities available-for-sale	(1,951)	(1,043)	(2,178)	(2,683)
Reclassification adjustment for net realized gains (losses) on investment securities available-for-sale	0	4	0	17
After-Tax Amount
Unrealized net gains (losses) on investment securities available-for-sale	3,118	1,660	3,482	4,295
Reclassification adjustment for net realized gains on investment securities available-for-sale	0	(7)	0	(27)
Unrealized net gains (losses) on derivatives
Pre-Tax Amount
Unrealized net gains (losses) on derivatives	31	275	(206)	1,212
Income Tax (Expense) Benefit
Unrealized net gains (losses) on derivatives	(12)	(106)	79	(470)
After-Tax Amount
Other comprehensive income, net of tax	19	169	(127)	742
Accumulated Other Comprehensive Income (Loss)
Pre-Tax Amount
Accumulated other comprehensive income (loss) beginning of period	(8,790)	2,724	(9,144)	(2,455)
Accumulated other comprehensive income (loss) end of period	(3,690)	5,691	(3,690)	5,691
Income Tax (Expense) Benefit
Accumulated other comprehensive income (loss) beginning of period	3,383	(1,052)	3,519	939
Accumulated other comprehensive income (loss) end of period	1,420	(2,197)	1,420	(2,197)
After-Tax Amount
Accumulated other comprehensive income (loss) beginning of period	(5,407)	1,672	(5,625)	(1,516)
Accumulated other comprehensive income (loss) end of period	$ (2,270)	$ 3,494	$ (2,270)	$ 3,494

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Earnings Per Common Share (Computation of Basic and Diluted Earnings Per Share) (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Earnings Per Share [Abstract]
Net income available to common shareholders	$ 4,329	$ 5,147	$ 7,559	$ 8,078
Weighted average shares outstanding
Basic (in shares)	25,621,910	24,644,755	25,472,132	24,565,328
Effect of dilutive securities:
Stock options and warrants (in shares)	209,371	513,939	281,501	517,640
Diluted (in shares)	25,831,281	25,158,694	25,753,633	25,082,968
Income per common share:
Basic (in dollars per share)	$ 0.17	$ 0.21	$ 0.30	$ 0.33
Diluted (in dollars per share)	$ 0.17	$ 0.20	$ 0.29	$ 0.32

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Earnings Per Common Share (Narrative) (Details) - shares	6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Dec. 31, 2016	Mar. 24, 2015
Earnings Per Share [Abstract]
Antidilutive securities excluded (in shares)	550	259,044
Capital shares, authorized (in shares)				110,000,000
Preferred stock authorized (in shares)	10,000,000		10,000,000	10,000,000
Common stock authorized (in shares)	100,000,000		100,000,000	100,000,000
Common stock issued (in shares)	25,654,521		25,093,135
Common stock outstanding (in shares)	25,654,521		25,093,135

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Derivatives and Hedging (Narrative) (Details) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016	Dec. 31, 2016
Derivative [Line Items]
Notional Amount	$ 16,300,000		$ 16,300,000		$ 4,500,000
Expected reclassification from AOCI in the next twelve months	159,000		159,000
Collateral posted	8,300,000		8,300,000		16,300,000
Not designated as hedging instrument | Other assets
Derivative [Line Items]
Notional Amount	166,872,000		166,872,000		169,049,000
Swap | Not designated as hedging instrument
Derivative [Line Items]
Notional Amount	141,000,000		141,000,000		140,700,000
Swap | Not designated as hedging instrument | Other assets
Derivative [Line Items]
Notional Amount	70,476,000		70,476,000		70,352,000
Cash Flow Hedging
Derivative [Line Items]
Hedge ineffectiveness gain (loss) recognized	0	$ 0	0	$ 0
Cash Flow Hedging | Designated as hedging instrument | LIBOR
Derivative [Line Items]
Notional Amount	50,000,000		50,000,000		50,000,000
Cash Flow Hedging | Designated as hedging instrument | Other assets | LIBOR
Derivative [Line Items]
Notional Amount	$ 25,000,000		$ 25,000,000		$ 50,000,000

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Derivatives and Hedging (Derivative Contracts and Credit Risk Participation Agreements) (Details) - USD ($) $ in Thousands	Jun. 30, 2017	Dec. 31, 2016
Derivative [Line Items]
Notional Amount	$ 16,300	$ 4,500
Designated as hedging instrument | Cash Flow Hedging | LIBOR
Derivative [Line Items]
Notional Amount	50,000	50,000
Not designated as hedging instrument | Swap
Derivative [Line Items]
Notional Amount	141,000	140,700
Other assets | Designated as hedging instrument | Cash Flow Hedging | LIBOR
Derivative [Line Items]
Notional Amount	25,000	50,000
Fair Value	38	186
Other assets | Not designated as hedging instrument
Derivative [Line Items]
Notional Amount	166,872	169,049
Fair Value	4,112	4,124
Other assets | Not designated as hedging instrument | Swap
Derivative [Line Items]
Notional Amount	70,476	70,352
Fair Value	1,262	1,364
Other assets | Not designated as hedging instrument | Zero premium collar
Derivative [Line Items]
Notional Amount	96,396	98,697
Fair Value	2,850	2,760
Other liabilities | Designated as hedging instrument | Cash Flow Hedging | LIBOR
Derivative [Line Items]
Notional Amount	25,000	0
Fair Value	1	0
Other liabilities | Not designated as hedging instrument
Derivative [Line Items]
Notional Amount	183,176	173,509
Fair Value	4,243	4,131
Other liabilities | Not designated as hedging instrument | Swap
Derivative [Line Items]
Notional Amount	70,476	70,352
Fair Value	1,306	1,371
Other liabilities | Not designated as hedging instrument | Credit risk participation
Derivative [Line Items]
Notional Amount	16,304	4,460
Fair Value	6	0
Other liabilities | Not designated as hedging instrument | Dealer offset to zero premium collar
Derivative [Line Items]
Notional Amount	96,396	98,697
Fair Value	$ 2,931	$ 2,760

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Derivatives and Hedging (Impact to Consolidated Statements of Income Related to Derivative Contracts) (Details) - Cash Flow Hedging - Interest rate swaps - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Derivative [Line Items]
Amount of Gain or (Loss) Recognized in OCI on Derivatives (Effective Portion)	$ 19	$ 169	$ (127)	$ 742
Gain or (Loss) Reclassified from Accumulated OCI in Income (Effective Portion)	$ 110	$ 183	$ 247	$ 369

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Other Borrowings and Long Term Debt (Schedule of Borrowings) (Details) - USD ($) $ in Thousands	Jun. 30, 2017	Dec. 31, 2016
Debt Instrument [Line Items]
Federal Home Loan Bank borrowings	$ 180,000	$ 110,000
Federal Funds purchased	15,000	0
Total Short-Term Borrowings	195,000	110,000
FHLB short-term borrowings
Debt Instrument [Line Items]
Federal Home Loan Bank borrowings	180,000	110,000
FHLB short-term borrowings | Fixed rate advance maturing January 17, 2017
Debt Instrument [Line Items]
Federal Home Loan Bank borrowings		$ 40,000
Interest Rate		0.64%
FHLB short-term borrowings | Fixed rate advance maturing January 24, 2017
Debt Instrument [Line Items]
Federal Home Loan Bank borrowings		$ 40,000
Interest Rate		0.61%
FHLB short-term borrowings | Fixed rate advance maturing January 30, 2017
Debt Instrument [Line Items]
Federal Home Loan Bank borrowings		$ 30,000
Interest Rate		0.62%
FHLB short-term borrowings | Fixed rate advance maturing July 3, 2017
Debt Instrument [Line Items]
Federal Home Loan Bank borrowings	$ 25,000
Interest Rate	1.02%
FHLB short-term borrowings | Fixed rate advance maturing July 20, 2017
Debt Instrument [Line Items]
Federal Home Loan Bank borrowings	$ 40,000
Interest Rate	1.16%
FHLB short-term borrowings | Fixed rate advance maturing July 24, 2017
Debt Instrument [Line Items]
Federal Home Loan Bank borrowings	$ 35,000
Interest Rate	1.16%
FHLB short-term borrowings | Fixed rate advance maturing July 24, 2017
Debt Instrument [Line Items]
Federal Home Loan Bank borrowings	$ 40,000
Interest Rate	1.17%
FHLB short-term borrowings | Fixed rate advance maturing July 27, 2017
Debt Instrument [Line Items]
Federal Home Loan Bank borrowings	$ 40,000
Interest Rate	1.17%
Federal Funds purchased and securities sold under agreements to repurchase
Debt Instrument [Line Items]
Interest Rate		0.00%
Federal Funds purchased	$ 15,000	$ 0
Federal Funds purchased and securities sold under agreements to repurchase | Minimum
Debt Instrument [Line Items]
Interest Rate	1.28%
Federal Funds purchased and securities sold under agreements to repurchase | Maximum
Debt Instrument [Line Items]
Interest Rate	1.31%

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Other Borrowings and Long Term Debt (Narrative) (Details) - Subordinated Debt - USD ($)		6 Months Ended
	Sep. 28, 2015	Jun. 30, 2017	Dec. 31, 2016
Debt Instrument [Line Items]
Aggregate principal amount		$ 50,000,000	$ 50,000,000
Maturity, more than		5 years
6.25% Subordinated Note, Due September 2020
Debt Instrument [Line Items]
Aggregate principal amount	$ 50,000,000.0	$ 50,000,000	$ 50,000,000
Stated interest rate	6.25%	6.25%
Debt instrument redemption price	100.00%
Maturity, more than		10 years
Subordinated Note After September 30, 2020 Due September 2025
Debt Instrument [Line Items]
Basis spread on variable rate		4.68%

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Other Borrowings and Long Term Debt (Schedule of Subordinated Debt) (Details) - USD ($)	6 Months Ended
	Jun. 30, 2017	Dec. 31, 2016	Sep. 28, 2015
Debt Instrument [Line Items]
Long-term debt	$ 49,451,000	$ 49,366,000
Subordinated Debt
Debt Instrument [Line Items]
Aggregate principal amount	50,000,000	50,000,000
Less debt issuance costs	549,000	634,000
Long-term debt	$ 49,451,000	49,366,000
Debt instrument term	5 years
Subordinated Debt | 6.25% Subordinated Note, Due September 2020
Debt Instrument [Line Items]
Aggregate principal amount	$ 50,000,000	$ 50,000,000	$ 50,000,000.0
Debt instrument term	10 years
Stated interest rate	6.25%		6.25%

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Share-Based Compensation (Narrative) (Details) - USD ($) $ / shares in Units, $ in Thousands		3 Months Ended		6 Months Ended
	May 14, 2007	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016	Dec. 31, 2016
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Options granted in period (shares)				0	0
Warrants granted in period (shares)				0	0
Share based compensation expense		$ 139	$ 203	$ 281	$ 445
Warrant
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Warrants outstanding (shares)		0		0		363,000
Share price (usd per share)						$ 10.00
Exercisable period from date from which warrants were issued (years)	10 years
2006 Stock Incentive Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares authorized (shares)		4,525,000		4,525,000
Number of additional shares authorized (shares)				3,862,000
Award vesting period				3 years
Term of award				10 years
Restricted Stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share based compensation expense		$ 243	$ 205	$ 473	$ 455
Compensation cost not yet recognized		$ 2,700		$ 2,700
Compensation cost not yet recognized, period for recognition				2 years 10 months 1 day

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Share-Based Compensation (Stock Option Activity) (Details) $ / shares in Units, $ in Thousands	6 Months Ended
	Jun. 30, 2017 USD ($) $ / shares shares
Shares
Outstanding, Beginning of period (in shares) | shares	1,485,704
Exercised | shares	(694,984)
Forfeited (in shares) | shares	(628)
Expired (in shares) | shares	(635)
Outstanding, End of period (in shares) | shares	789,457
Exercisable, End of period (in shares) | shares	513,515
Weighted Average Exercise Price
Outstanding, Weighted average exercise price, Beginning of period (dollars per share) | $ / shares	$ 11.69
Exercised, Weighted average exercise price (dollars per share) | $ / shares	10.48
Forfeited, Weighted average exercise price (dollars per share) | $ / shares	10.31
Expired, Weighted average exercise price (dollars per share) | $ / shares	126.22
Outstanding, Weighted average exercise price, End of period (dollars per share) | $ / shares	12.61
Exercisable, Weighted average exercise price, End of period (dollars per share) | $ / shares	$ 11.72
Share-based Compensation Arrangement by Share-based Payment Award, Options, Additional Disclosures [Abstract]
Outstanding, Weighted average remaining contractual term, End of period (in years)	6 years 8 days
Exercisable, Weighted average remaining contractual term, End of period (in years)	4 years 11 months 28 days
Outstanding, Aggregate intrinsic value, End of period | $	$ 5,274
Exercisable, Aggregate intrinsic value, End of period | $	$ 3,926

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Share-Based Compensation (Restricted Stock Activity) (Details) - Restricted Stock	6 Months Ended
	Jun. 30, 2017 $ / shares shares
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward]
Beginning of period (in shares) | shares	259,165
Granted (in shares) | shares	61,715
Vested (in shares) | shares	(58,309)
Forfeited (in shares) | shares	(26,875)
End of period (in shares) | shares	235,696
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Roll Forward]
Weighted average grant date fair value, Nonvested, Beginning of period (dollars per share) | $ / shares	$ 13.70
Weighted average grant date fair value, Granted (dollars per share) | $ / shares	18.72
Weighted average grant date fair value, Vested (dollars per share) | $ / shares	12.25
Weighted average grant date fair value, Forfeited (dollars per share) | $ / shares	14.57
Weighted average grant date fair value, Nonvested, End of period (dollars per share) | $ / shares	$ 15.27

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Fair Value Measurements (Fair Value Measurements Recurring) (Details) - USD ($) $ in Thousands	Jun. 30, 2017	Dec. 31, 2016
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total securities available-for-sale	$ 450,273	$ 347,705
Interest rate derivative assets	4,150	4,310
Interest rate derivative liabilities	4,244	4,131
Fair Value | Fair value, measurements, recurring
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total securities available-for-sale	450,273	347,705
Interest rate derivative assets	4,150	4,310
Interest rate derivative liabilities	4,244	4,131
Fair Value | Fair value, measurements, recurring | Quoted Prices in Active Markets for Identical Securities (Level 1)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total securities available-for-sale	0	0
Interest rate derivative assets	0	0
Interest rate derivative liabilities	0	0
Fair Value | Fair value, measurements, recurring | Significant Other Observable Inputs (Level 2)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total securities available-for-sale	450,273	347,705
Interest rate derivative assets	4,150	4,310
Interest rate derivative liabilities	4,244	4,131
Fair Value | Fair value, measurements, recurring | Significant Unobservable Inputs (Level 3)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total securities available-for-sale	0	0
Interest rate derivative assets	0	0
Interest rate derivative liabilities	0	0
Fair Value | U.S. government agencies | Fair value, measurements, recurring
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total securities available-for-sale	35,125	21,152
Fair Value | U.S. government agencies | Fair value, measurements, recurring | Quoted Prices in Active Markets for Identical Securities (Level 1)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total securities available-for-sale	0	0
Fair Value | U.S. government agencies | Fair value, measurements, recurring | Significant Other Observable Inputs (Level 2)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total securities available-for-sale	35,125	21,152
Fair Value | U.S. government agencies | Fair value, measurements, recurring | Significant Unobservable Inputs (Level 3)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total securities available-for-sale	0	0
Fair Value | U.S. states and political subdivisions | Fair value, measurements, recurring
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total securities available-for-sale	94,168	90,172
Fair Value | U.S. states and political subdivisions | Fair value, measurements, recurring | Quoted Prices in Active Markets for Identical Securities (Level 1)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total securities available-for-sale	0	0
Fair Value | U.S. states and political subdivisions | Fair value, measurements, recurring | Significant Other Observable Inputs (Level 2)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total securities available-for-sale	94,168	90,172
Fair Value | U.S. states and political subdivisions | Fair value, measurements, recurring | Significant Unobservable Inputs (Level 3)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total securities available-for-sale	0	0
Fair Value | Trust preferred securities | Fair value, measurements, recurring
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total securities available-for-sale	4,688	4,525
Fair Value | Trust preferred securities | Fair value, measurements, recurring | Quoted Prices in Active Markets for Identical Securities (Level 1)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total securities available-for-sale	0	0
Fair Value | Trust preferred securities | Fair value, measurements, recurring | Significant Other Observable Inputs (Level 2)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total securities available-for-sale	4,688	4,525
Fair Value | Trust preferred securities | Fair value, measurements, recurring | Significant Unobservable Inputs (Level 3)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total securities available-for-sale	0	0
Fair Value | Corporate debt securities | Fair value, measurements, recurring
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total securities available-for-sale	19,220	19,231
Fair Value | Corporate debt securities | Fair value, measurements, recurring | Quoted Prices in Active Markets for Identical Securities (Level 1)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total securities available-for-sale	0	0
Fair Value | Corporate debt securities | Fair value, measurements, recurring | Significant Other Observable Inputs (Level 2)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total securities available-for-sale	19,220	19,231
Fair Value | Corporate debt securities | Fair value, measurements, recurring | Significant Unobservable Inputs (Level 3)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total securities available-for-sale	0	0
Fair Value | Mortgage-backed securities | Fair value, measurements, recurring
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total securities available-for-sale	297,072	212,625
Fair Value | Mortgage-backed securities | Fair value, measurements, recurring | Quoted Prices in Active Markets for Identical Securities (Level 1)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total securities available-for-sale	0	0
Fair Value | Mortgage-backed securities | Fair value, measurements, recurring | Significant Other Observable Inputs (Level 2)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total securities available-for-sale	297,072	$ 212,625
Fair Value | Mortgage-backed securities | Fair value, measurements, recurring | Significant Unobservable Inputs (Level 3)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total securities available-for-sale	$ 0

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Fair Value Measurements (Fair Value Measurements Nonrecurring) (Details) - Impaired Loans - Fair Value - Fair value, measurements, nonrecurring - USD ($) $ in Thousands	Jun. 30, 2017	Dec. 31, 2016
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets	$ 7,655	$ 7,248
Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets	0	0
Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets	0	0
Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets	$ 7,655	$ 7,248

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Fair Value Measurements (Estimated Fair Value and Carrying Value Summary) (Details) - USD ($) $ in Thousands	Jun. 30, 2017	Dec. 31, 2016
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash and due from banks	$ 45,008	$ 36,790
Interest-bearing deposits in banks	36,171	118,039
Other short-term investments	17,459	10,896
Total securities available-for-sale	450,273	347,705
Loans held for investment, net	1,940,221	1,960,735
Derivative assets	4,150	4,310
Subordinated debt	49,451	49,366
FHLB advances	180,000	110,000
Derivative financial instruments	4,244	4,131
Fair value, measurements, recurring | Carrying Value
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash and due from banks	45,008	36,790
Interest-bearing deposits in banks	36,171	118,039
Other short-term investments	17,459	10,896
Total securities available-for-sale	450,273	347,705
FHLB stock	10,126	7,067
Federal Reserve Bank stock	9,781	9,690
Loans held for investment, net	1,940,221	1,960,735
Loans held for sale	1,744	35,219
Derivative assets	4,150	4,310
Deposits	2,113,954	2,205,991
Federal funds purchased and securities sold under agreements to repurchase	15,000
Deposits to be assumed in branch sale		31,589
Subordinated debt	49,451	49,366
FHLB advances	180,000	110,000
Derivative financial instruments	4,244	4,131
Fair value, measurements, recurring | Fair Value
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total securities available-for-sale	450,273	347,705
Derivative assets	4,150	4,310
Derivative financial instruments	4,244	4,131
Fair value, measurements, recurring | Fair Value | Quoted Prices in Active Markets for Identical Securities (Level 1)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash and due from banks	45,008	36,790
Interest-bearing deposits in banks	36,171	118,039
Other short-term investments	17,459	10,896
Total securities available-for-sale	0	0
FHLB stock	0	0
Federal Reserve Bank stock	0	0
Loans held for investment, net	0	0
Loans held for sale	0	0
Derivative assets	0	0
Deposits	0	0
Federal funds purchased and securities sold under agreements to repurchase	15,000
Deposits to be assumed in branch sale		0
Subordinated debt	0	0
FHLB advances	0	0
Derivative financial instruments	0	0
Fair value, measurements, recurring | Fair Value | Significant Other Observable Inputs (Level 2)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash and due from banks	0	0
Interest-bearing deposits in banks	0	0
Other short-term investments	0	0
Total securities available-for-sale	450,273	347,705
FHLB stock	0	0
Federal Reserve Bank stock	0	0
Loans held for investment, net	0	0
Loans held for sale	1,744	35,219
Derivative assets	4,150	4,310
Deposits	2,006,800	2,144,196
Federal funds purchased and securities sold under agreements to repurchase	0
Deposits to be assumed in branch sale		31,589
Subordinated debt	50,007	48,971
FHLB advances	180,012	109,946
Derivative financial instruments	4,244	4,131
Fair value, measurements, recurring | Fair Value | Significant Unobservable Inputs (Level 3)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash and due from banks	0	0
Interest-bearing deposits in banks	0	0
Other short-term investments	0	0
Total securities available-for-sale	0	0
FHLB stock	10,126	7,067
Federal Reserve Bank stock	9,781	9,690
Loans held for investment, net	1,999,159	1,939,895
Loans held for sale	0	0
Derivative assets	0	0
Deposits	0	0
Federal funds purchased and securities sold under agreements to repurchase	0
Deposits to be assumed in branch sale		0
Subordinated debt	0	0
FHLB advances	0	0
Derivative financial instruments	$ 0	$ 0

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Commitments and Contingencies (Exposure to Credit Risk) (Details) - USD ($) $ in Thousands	Jun. 30, 2017	Dec. 31, 2016
Loss Contingencies [Line Items]
Maximum credit risk exposure	$ 647,175	$ 634,057
Commitments to extend credit
Loss Contingencies [Line Items]
Maximum credit risk exposure	631,250	617,432
Standby letters of credit
Loss Contingencies [Line Items]
Maximum credit risk exposure	$ 15,925	$ 16,625