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 September 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: 25,728,186 shares outstanding as of November 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 - September 30, 2017 and December 31, 2016	1
	Consolidated Statements of Income - Three and Nine Months ended September 30, 2017 and 2016	2
	Consolidated Statements of Comprehensive Income - Three and Nine Months ended September 30, 2017 and 2016	3
	Consolidated Statements of Shareholders’ Equity - Nine Months ended September 30, 2017 and 2016	4
	Consolidated Statements of Cash Flows - Nine Months ended September 30, 2017 and 2016	5
	Notes to Unaudited Consolidated Financial Statements	7
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	35
Item 3.	Quantitative and Qualitative Disclosures about Market Risk	56
Item 4.	Controls and Procedures	56
PART II.	OTHER INFORMATION	57
Item 1.	Legal Proceedings	57
Item 1A.	Risk Factors	57
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	57
Item 3.	Defaults Upon Senior Securities	57
Item 4.	Mine Safety Disclosures	57
Item 5.	Other Information	57
Item 6.	Exhibits	57
EXHIBIT INDEX		58
SIGNATURES		59

PART I - FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS (UNAUDITED)

Atlantic Capital Bancshares, Inc. and Subsidiary

Consolidated Balance Sheets

	September 30, 2017			December 31, 2016
(in thousands, except share data)	(unaudited)
ASSETS
Cash and due from banks	$	35,504		$	36,790
Interest-bearing deposits in banks	40,558			118,039
Other short-term investments	5,189			10,896
Cash and cash equivalents	81,251			165,725
Securities available-for-sale	447,005			347,705
Other investments	35,818			23,806
Loans held for sale	3,274			35,219
Loans held for investment	1,905,432			1,981,330
Less: allowance for loan losses	(18,870		)	(20,595		)
Loans held for investment, net	1,886,562			1,960,735
Branch premises held for sale	—			2,995
Premises and equipment, net	11,747			11,958
Bank owned life insurance	63,284			62,160
Goodwill and intangible assets, net	27,945			29,567
Other real estate owned	1,494			1,872
Other assets	80,032			85,801
Total assets	$	2,638,412		$	2,727,543

LIABILITIES AND SHAREHOLDERS’ EQUITY
Liabilities:
Deposits:
Noninterest-bearing demand	$	599,292		$	643,471
Interest-bearing checking	270,740			264,062
Savings	30,131			27,932
Money market	865,238			912,493
Time	144,250			157,810
Brokered deposits	193,994			200,223
Total deposits	2,103,645			2,205,991
Deposits to be assumed in branch sale	—			31,589
Federal Home Loan Bank borrowings	125,000			110,000
Long-term debt	49,493			49,366
Other liabilities	35,520			26,939
Total liabilities	2,313,658			2,423,885
SHAREHOLDERS’ EQUITY
Preferred Stock, no par value – 10,000,000 shares authorized; no shares issued and outstanding as of September 30, 2017 and December 31, 2016	—			—
Common stock, no par value – 100,000,000 shares authorized; 25,716,418 and 25,093,135 shares issued and outstanding as of September 30, 2017, and December 31, 2016, respectively	298,469			292,747
Retained earnings	28,147			16,536
Accumulated other comprehensive (loss) income	(1,862		)	(5,625		)
Total shareholders’ equity	324,754			303,658
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY	$	2,638,412		$	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					Nine Months Ended
	September 30,					September 30,
(in thousands, except per share data)	2017			2016		2017			2016
INTEREST INCOME
Loans, including fees	$	21,491		$	20,511	$	62,846		$	60,418
Investment securities – available-for-sale	2,298			1,293		6,671			4,221
Interest and dividends on other interest-earning assets	562			491		1,617			1,271
Total interest income	24,351			22,295		71,134			65,910
INTEREST EXPENSE
Interest on deposits	2,693			1,956		7,221			5,470
Interest on Federal Home Loan Bank advances	459			133		1,213			324
Interest on federal funds purchased and securities sold under agreements to repurchase	84			37		196			191
Interest on long-term debt	824			815		2,471			2,457
Other	—			—		—			38
Total interest expense	4,060			2,941		11,101			8,480
NET INTEREST INCOME BEFORE PROVISION FOR LOAN LOSSES	20,291			19,354		60,033			57,430
Provision for loan losses	322			463		2,936			1,608
NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES	19,969			18,891		57,097			55,822
NONINTEREST INCOME
Service charges	1,247			1,270		3,870			4,160
(Loss) gain on sales of securities available-for-sale	(80		)	—		(80		)	44
Gain on sales of other assets	44			71		788			150
Mortgage income	320			632		965			1,418
Trust income	437			361		1,332			1,061
Derivatives income	(3		)	69		62			232
Bank owned life insurance	384			424		1,146			1,215
SBA lending activities	888			959		3,286			3,043
TriNet lending activities	20			—		60			1,144
Gains on sale of branches	—			—		302			3,885
Other noninterest income	220			216		890			950
Total noninterest income	3,477			4,002		12,621			17,302
NONINTEREST EXPENSE
Salaries and employee benefits	10,409			10,059		32,077			31,034
Occupancy	1,129			1,235		3,433			3,609
Equipment and software	776			862		2,577			2,272
Professional services	1,595			442		3,472			1,950
Postage, printing and supplies	63			61		226			389
Communications and data processing	982			617		3,038			2,227
Marketing and business development	272			269		721			853
FDIC premiums	308			415		754			1,306
Merger and conversion costs	—			579		304			2,538
Amortization of intangibles	391			520		1,286			1,950
Foreclosed property/problem asset expense	7			39		117			198
Other noninterest expense	1,572			2,198		4,866			6,179
Total noninterest expense	17,504			17,296		52,871			54,505
INCOME BEFORE PROVISION FOR INCOME TAXES	5,942			5,597		16,847			18,619
Provision for income taxes	1,890			1,889		5,236			6,833
NET INCOME	$	4,052		$	3,708	$	11,611		$	11,786
NET INCOME PER SHARE:
Net income per share – basic	$	0.16		$	0.15	$	0.45		$	0.48
Net income per share – diluted	$	0.16		$	0.15	$	0.45		$	0.47

See Accompanying Notes to Consolidated Financial Statements

2

Atlantic Capital Bancshares, Inc. and Subsidiary

Consolidated Statements of Comprehensive Income

(Unaudited)

	Three Months Ended						Nine Months Ended
	September 30,						September 30,
(in thousands)	2017			2016			2017			2016
Net income	$	4,052		$	3,708		$	11,611		$	11,786
Other comprehensive income
Unrealized gains (losses) on available-for-sale securities:
Unrealized holding gains (losses) arising during the period, net of tax of $272, ($329), $2,450, and $2,354, respectively	434			(524		)	3,916			3,771
Reclassification adjustment for losses (gains) included in net income net of tax of $31, $0, $31, and ($17), respectively	49			—			49			(27		)
Unrealized gains on available-for-sale securities, net of tax	483			(524		)	3,965			3,744
Cash flow hedges:
Net unrealized derivative gains (losses) on cash flow hedges, net of tax of ($46), ($169), ($125), and $301, respectively	(75		)	(269		)	(202		)	473
Changes from cash flow hedges	(75		)	(269		)	(202		)	473
Other comprehensive income, net of tax	408			(793		)	3,763			4,217
Comprehensive income	$	4,460		$	2,915		$	15,374		$	16,003

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	—	—		11,786		—			11,786
Change in unrealized gains on investment securities available-for-sale, net	—	—		—		3,744			3,744
Change in unrealized gains on cash flow hedges	—	—		—		473			473
Total comprehensive income									16,003
Issuance of restricted stock	91,486	—		—		—			—
Issuance of common stock for option exercises	366,918	2,568		—		—			2,568
Issuance of common stock for long-term incentive plan	66,149	884		—		—			884
Restricted stock activity	—	378		—		—			378
Stock-based compensation	—	638		—		—			638
Balance - September 30, 2016	24,950,099	$	290,835	$	14,927	$	2,701		$	308,463
Balance - December 31, 2016	25,093,135	$	292,747	$	16,536	$	(5,625	)	$	303,658
Comprehensive income:
Net Income	—	—		11,611		—			11,611
Change in unrealized gains on investment securities available-for-sale, net	—	—		—		3,965			3,965
Change in unrealized gains (losses) on cash flow hedges	—	—		—		(202		)	(202		)
Total comprehensive income									15,374
Issuance of restricted stock	101,791	—		—		—			—
Issuance of common stock for option exercises	459,693	3,172		—		—			3,172
Issuance of common stock for long-term incentive plan	61,799	1,209		—		—			1,209
Restricted stock activity	—	869		—		—			869
Stock-based compensation	—	472		—		—			472
Balance - September 30, 2017	25,716,418	$	298,469	$	28,147	$	(1,862	)	$	324,754

See Accompanying Notes to Consolidated Financial Statements

4

Atlantic Capital Bancshares, Inc. and Subsidiary

Consolidated Statements of Cash Flows (Unaudited)

	Nine Months Ended
	September 30,
(in thousands)	2017			2016
OPERATING ACTIVITIES
Net income	$	11,611		$	11,786
Adjustments to reconcile net income to net cash provided by operating activities
Provision for loan losses	2,936			1,608
Depreciation, amortization, and accretion	4,088			4,550
Amortization of restricted stock compensation	869			378
Stock option compensation	472			638
Loss (gain) on sales of available-for-sale securities	80			(44		)
Loss on disposition of premises and equipment, net	347			—
Net gains on sales of other real estate owned	(267		)	(114		)
Gain on sale of tax credit	(426		)	—
Net increase in cash value of bank owned life insurance	(1,124		)	(1,167		)
Gain on bank owned life insurance	—			(27		)
Net gains on sale of branches	(302		)	(3,885		)
Origination of servicing assets	(749		)	(1,295		)
Proceeds from sales of SBA loans	34,448			41,890
Net gains on sale of SBA loans	(2,367		)	(2,743		)
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	7,587			(47,019		)
Net increase in other assets	(4,115		)	(8,929		)
Net increase (decrease) in accrued expenses and other liabilities	9,454			(2,237		)
Net cash provided by operating activities	62,542			89,285
INVESTING ACTIVITIES
Activity in securities available-for-sale:
Prepayments	35,271			32,438
Maturities and calls	5,190			26,932
Sales	1,813			65,103
Purchases	(139,465		)	(117,950		)
Net decrease (increase) in loans held for investment	38,720			(294,337		)
Purchases of Federal Home Loan Bank stock, net	(721		)	(8,569		)
Purchases of Federal Reserve Bank stock, net	(91		)	(3,055		)
Proceeds from bank owned life insurance benefits	—			36
Proceeds from sales of other real estate	1,081			1,814
Net cash received (paid) for branch divestiture	5,379			(140,295		)
Purchases of premises and equipment, net	(1,353		)	(467		)
Net cash used in investing activities	(54,176		)	(438,350		)

See Accompanying Notes to Consolidated Financial Statements

5

	Nine Months Ended
	September 30,
(in thousands)	2017			2016
FINANCING ACTIVITIES
Net change in deposits	(111,371		)	116,885
Proceeds from Federal Home Loan Bank advances	1,404,000			915,000
Repayments of Federal Home Loan Bank advances	(1,389,000		)	(745,000		)
Proceeds from exercise of stock options	3,531			2,767
Net cash (used in) provided by financing activities	(92,840		)	289,652
NET CHANGE IN CASH AND CASH EQUIVALENTS	(84,474		)	(59,413		)
CASH AND CASH EQUIVALENTS – beginning of period	165,725			202,885
CASH AND CASH EQUIVALENTS – end of period	$	81,251		$	143,472
	Nine Months Ended
	September 30,
	2017			2016
SUPPLEMENTAL SCHEDULE OF CASH FLOWS
Interest paid	$	12,270		$	9,386
Income taxes paid	$	840		$	3,462

See Accompanying Notes to Consolidated Financial Statements

6

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 August 2017, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2017-12 - “Derivatives and Hedging: Targeted Improvements to Accounting for Hedging Activities.” The purpose of this updated guidance is to better align a company’s financial reporting for hedging activities with the economic objectives of those activities. ASU 2017-12 is effective for public business entities for fiscal years beginning after December 15, 2018, with early adoption, including adoption in an interim period, permitted. Atlantic Capital plans to adopt ASU 2017-12 on January 1, 2018. The guidance requires a modified retrospective transition method resulting in the cumulative effect of the change on the opening balance of each affected component of equity in the statement of financial position as of the date of adoption. Atlantic Capital does not expect adoption to have a material impact on its consolidated financial statements.

In May 2017, the FASB issued 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

7

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, this ASU will not 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.

8

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 $0 and $304,000 for the three and nine months ended September 30, 2017, respectively, and $579,000 and $2.5 million for the three and nine months ended September 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.

9

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 September 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
September 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	$	5,189	$	—	$	5,189	$	(5,189	)	$	—		$	—
Derivatives	3,993		—		3,993		—			—			3,993
Total	$	9,182	$	—	$	9,182	$	(5,189	)	$	—		$	3,993
							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	4,184		—		4,184		(2,868		)	(1,316		)	—
Total	$	4,184	$	—	$	4,184	$	(2,868	)	$	(1,316	)	$	—
							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	)	$	—

10

NOTE 5 – SECURITIES

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

Available-For-Sale	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
	(in thousands)
September 30, 2017
Debt securities—
U.S. Government agencies	$	34,961	$	108	$	(286	)	$	34,783
U.S. states and political divisions	96,813		339		(3,373		)	93,779
Trust preferred securities	4,747		—		(72		)	4,675
Corporate debt securities	16,700		115		(659		)	16,156
Residential mortgage-backed securities	296,978		3,147		(2,513		)	297,612
Total	$	450,199	$	3,709	$	(6,903	)	$	447,005
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 September 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	$	625	$	625
Over 1 year through 5 years	25,696		25,507
5 years to 10 years	53,041		52,506
Over 10 years	73,859		70,755
	153,221		149,393
Residential mortgage-backed securities	296,978		297,612
Total	$	450,199	$	447,005

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The following table summarizes available-for-sale securities in an unrealized loss position as of September 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)
September 30, 2017
U.S. Government agencies	$	22,309	$	(221	)	2,582		$	(65	)	$	24,891	$	(286	)
U.S. states and political divisions	39,864		(1,038		)	36,070		(2,335		)	75,934		(3,373		)
Trust preferred securities	—		—			4,675		(72		)	4,675		(72		)
Corporate debt securities	3,501		(41		)	5,895		(618		)	9,396		(659		)
Residential mortgage-backed securities	77,392		(759		)	89,130		(1,754		)	166,522		(2,513		)
Totals	$	143,066	$	(2,059	)	$	138,352	$	(4,844	)	$	281,418	$	(6,903	)
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 September 30, 2017, there were 245 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 September 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 nine months endedSeptember 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 nine months endedSeptember 30, 2017 and 2016.

	Three Months Ended September 30,					Nine Months Ended September 30,
	2017			2016		2017			2016
	(in thousands)
Proceeds from sales	$	1,813		$	—	$	1,813		$	65,103
Gross realized gains	—			—		—			449
Gross realized losses	(80		)	—		(80		)	(405		)
Net gains on sales of securities	$	(80	)	$	—	$	(80	)	$	44

Investment securities with a carrying value of $100.0 million and $104.9 million were pledged to secure public funds and other borrowings at September 30, 2017 and December 31, 2016, respectively.

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NOTE 6 – LOANS AND ALLOWANCE FOR LOAN LOSSES

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

	September 30, 2017			December 31, 2016
	(in thousands)
Loans held for sale
Branch loans held for sale	$	—		$	30,917
Other loans held for sale	3,274			4,302
Total loans held for sale	$	3,274		$	35,219
Loans held for investment
Commercial loans:
Commercial and industrial	$	562,426		$	531,061
Commercial real estate	944,854			858,778
Construction and land	132,080			219,352
Mortgage warehouse participations	41,551			147,519
Total commercial loans	1,680,911			1,756,710
Residential:
Residential mortgages	101,976			101,921
Home equity	78,773			77,358
Total residential loans	180,749			179,279
Consumer	31,750			27,338
Other	16,106			21,565
Total loans	1,909,516			1,984,892
Less net deferred fees and other unearned income	(4,084		)	(3,562		)
Less allowance for loan losses	(18,870		)	(20,595		)
Loans held for investment, net	$	1,886,562		$	1,960,735

At September 30, 2017 and December 31, 2016, loans with a carrying value of $473.5 million and $474.8 million, respectively, were pledged as collateral to secure FHLB advances and the Federal Reserve discount window.

At September 30, 2017, the carrying value and outstanding balance of Purchased Credit Impaired (“PCI”) loans accounted for under ASC 310-30 was $12.1 million and $14.6 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 Nine Months Ended
	September 30, 2017			September 30, 2016			September 30, 2017			September 30, 2016
	(in thousands)
Balance at beginning of period	$	3,130		$	1,826		$	3,467		$	2,369
Additions due to acquisitions	—			—			—			—
Accretion	(427		)	(341		)	(1,206		)	(884		)
Reclassification of nonaccretable discount due to change in expected cash flows	(202		)	2,404			142			2,404
Other changes, net	281			295			379			295
Balance at end of period	$	2,782		$	4,184		$	2,782		$	4,184

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 September 30, 2017, the remaining accretable fair value discount on loans acquired through a business combination and not accounted for under ASC 310-30 was $3.1 million compared to $3.9 million at December 31, 2016.

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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 nine months endedSeptember 30, 2017 and 2016.

	2017												2016
Three Months Ended September 30,	Commercial			Residential			Consumer			Total			Commercial			Residential			Consumer			Total
	(in thousands)
Allowance for loan losses:
Beginning balance	$	20,692		$	860		$	318		$	21,870		$	16,469		$	1,389		$	519		$	18,377
Provision for loan losses	273			55			(6		)	322			409			64			(10		)	463
Loans charged-off	(3,308		)	(31		)	(7		)	(3,346		)	(287		)	(9		)	(65		)	(361		)
Recoveries	16			—			8			24			34			7			14			55
Total ending allowance balance	$	17,673		$	884		$	313		$	18,870		$	16,625		$	1,451		$	458		$	18,534
	2017												2016
Nine Months Ended September 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	3,152			(451		)	235			2,936			1,934			(503		)	177			1,608
Loans charged-off	(4,221		)	(85		)	(396		)	(4,702		)	(1,897		)	(34		)	(249		)	(2,180		)
Recoveries	25			2			14			41			51			7			143			201
Total ending allowance balance	$	17,673		$	884		$	313		$	18,870		$	16,625		$	1,451		$	458		$	18,534

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.

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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 September 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 September 30, 2017 and December 31, 2016.

September 30, 2017	Commercial		Residential		Consumer		Total
	(in thousands)
Allowance for loan losses:
Ending allowance balance attributable to loans
Individually evaluated for impairment	$	490	$	—	$	—	$	490
Collectively evaluated for impairment	17,102		884		311		18,297
PCI	81		—		2		83
Total ending allowance balance	$	17,673	$	884	$	313	$	18,870
Loans:
Loans individually evaluated for impairment	$	9,049	$	719	$	—	$	9,768
Loans collectively evaluated for impairment	1,662,299		177,511		47,848		1,887,658
PCI	9,563		2,519		8		12,090
Total ending loans balance	$	1,680,911	$	180,749	$	47,856	$	1,909,516
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

15

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

	For the Three Months Ended September 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	$	2,424	$	2,361	$	—	$	2,287	$	14	$	3,118	$	3,057	$	—	$	3,028	$	40
Commercial real estate	1,946		1,783		—		1,889		—		—		—		—		—		—
Construction and land	—		—		—		—		—		—		—		—		—		—
Residential mortgages	236		190		—		191		—		—		—		—		—		—
Home equity	529		529		—		531		—		—		—		—		—		—
Mortgage warehouse	—		—		—		—		—		—		—		—		—		—
Consumer	—		—		—		—		—		—		—		—		—		—
Total	$	5,135	$	4,863	$	—	$	4,898	$	14	$	3,118	$	3,057	$	—	$	3,028	$	40
Impaired loans with an allowance recorded:
Commercial and industrial	$	4,333	$	4,333	$	356	$	4,375	$	49	$	4,461	$	4,461	$	481	$	4,461	$	—
Commercial real estate	572		572		134		576		6		1,132		1,132		205		1,132		—
Construction and land	—		—		—		—		—		—		—		—		—		—
Residential mortgages	—		—		—		—		—		406		406		65		406		—
Home equity	—		—		—		—		—		—		—		—		—		—
Mortgage warehouse	—		—		—		—		—		—		—		—		—		—
Consumer	—		—		—		—		—		—		—		—		—		—
Total	$	4,905	$	4,905	$	490	$	4,951	$	55	$	5,999	$	5,999	$	751	$	5,999	$	—
Total impaired loans	$	10,040	$	9,768	$	490	$	9,849	$	69	$	9,117	$	9,056	$	751	$	9,027	$	40

16

	For the Nine Months Ended September 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	$	2,424	$	2,361	$	—	$	2,717	$	42	$	3,118	$	3,057	$	—	$	2,960	$	112
Commercial real estate	1,946		1,783		—		1,925		1		—		—		—		—		—
Construction and land	—		—		—		—		—		—		—		—		—		—
Residential mortgages	236		190		—		221		—		—		—		—		—		—
Home equity	529		529		—		264		—		—		—		—		—		—
Mortgage warehouse	—		—		—		—		—		—		—		—		—		—
Consumer	—		—		—		—		—		—		—		—		—		—
Total	$	5,135	$	4,863	$	—	$	5,127	$	43	$	3,118	$	3,057	$	—	$	2,960	$	112
Impaired loans with an allowance recorded:
Commercial and industrial	$	4,333	$	4,333	$	356	$	4,454	$	149	$	4,461	$	4,461	$	481	$	4,461	$	—
Commercial real estate	572		572		134		581		19		1,132		1,132		205		1,132		—
Construction and land	—		—		—		—		—		—		—		—		—		—
Residential mortgages	—		—		—		—		—		406		406		65		406		—
Home equity	—		—		—		—		—		—		—		—		—		—
Mortgage warehouse	—		—		—		—		—		—		—		—		—		—
Consumer	—		—		—		—		—		—		—		—		—		—
Total	$	4,905	$	4,905	$	490	$	5,035	$	168	$	5,999	$	5,999	$	751	$	5,999	$	—
Total impaired loans	$	10,040	$	9,768	$	490	$	10,162	$	211	$	9,117	$	9,056	$	751	$	8,959	$	112

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 September 30, 2017 and December 31, 2016, the Company had a recorded investment in TDRs of $7.1 million and $6.6 million, respectively. The Company had commitments to lend additional funds of $34,000 and $387,000 on loans modified as TDRs, as of September 30, 2017 and December 31, 2016, respectively. During the three months ended September 30, 2017, a large Commercial and Industrial borrower was sold. As a part of the deficiency agreement, part of the credit relationship was restructured. The restructure included a charge off and the reclassification of the remaining balance to a TDR of $980,000. Additionally, during the nine months ended September 30, 2017, the modification of terms for one Home Equity loan included a short term extension of the maturity date. During

17

the three and nine months endedSeptember 30, 2016, the modification of terms for one Commercial and Industrial loan included an extension of the maturity date and related amortization period date of two years. The modification of terms for two Commercial Real Estate loans established an interest only payment period of six months. 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.

18

As of September 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 Nonaccruing		Total
	(in thousands)
September 30, 2017
Commercial and industrial	$	515,388	$	13,362	$	27,179	$	996	$	5	$	556,930
Commercial real estate	925,588		9,730		4,037		133		1,631		941,119
Construction and land	127,005		4,721		—		22		—		131,748
Residential mortgages	97,685		1,365		714		248		328		100,340
Home equity	76,685		41		469		695		—		77,890
Mortgage warehouse	41,551		—		—		—		—		41,551
Consumer/Other	47,594		60		194		—		—		47,848
Total loans, excluding PCI loans	$	1,831,496	$	29,279	$	32,593	$	2,094	$	1,964	$	1,897,426
Commercial and industrial	$	—	$	4,781	$	715	$	—	$	—	$	5,496
Commercial real estate	3,091		233		295		—		116		3,735
Construction and land	298		7		27		—		—		332
Residential mortgages	396		540		700		—		—		1,636
Home equity	105		475		303		—		—		883
Mortgage warehouse	—		—		—		—		—		—
Consumer/Other	1		1		6		—		—		8
Total PCI loans	$	3,891	$	6,037	$	2,046	$	—	$	116	$	12,090

	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

19

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

	As of September 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	$	548,425	$	7,379	$	125	$	1,001	$	5,496	$	562,426
Commercial real estate	936,836		2,519		—		1,764		3,735		944,854
Construction and land	131,328		398		—		22		332		132,080
Residential mortgages	98,308		1,258		198		576		1,636		101,976
Home equity	76,951		244		—		695		883		78,773
Mortgage warehouse	41,551		—		—		—		—		41,551
Consumer	47,676		—		172		—		8		47,856
Total Loans	$	1,881,075	$	11,798	$	495	$	4,058	$	12,090	$	1,909,516

	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 September 30, 2017 and December 31, 2016 is summarized below:

	September 30,			December 31,
	2017			2016
	(in thousands)
Core deposit intangible	$	9,544		$	9,544
Less: accumulated amortization	(4,257		)	(2,971		)
Less: impairment related to divested branches	(2,286		)	(1,949		)
Core deposit intangible, net	3,001			4,624
Servicing assets, net	3,185			3,184
Total other intangibles, net	6,186			7,808
Goodwill	21,759			21,759
Total goodwill and other intangible assets, net	$	27,945		$	29,567

During the nine months endedSeptember 30, 2017 and 2016, Atlantic Capital recorded measurement period adjustments that decreased goodwill by $0 and $1.6 million, 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 nine months endedSeptember 30, 2017 and 2016. The following table presents activity for goodwill and other intangible assets:

	For the Three Months Ended September 30,									For the Nine Months Ended September 30,
	Goodwill			Core Deposit Intangible			Total			Goodwill			Core Deposit Intangible			Total
	(in thousands)
2017
Balance, beginning of period	$	21,759		$	3,392		$	25,151		$	21,759		$	4,624		$	26,383
Amortization	—			(391		)	(391		)	—			(1,286		)	(1,286		)
Impairment, due to branch divestiture	—			—			—			—			(337		)	(337		)
Balance, end of period	$	21,759		$	3,001		$	24,760		$	21,759		$	3,001		$	24,760
2016
Balance, beginning of period	$	22,446		$	5,639		$	28,085		$	23,352		$	9,018		$	32,370
Amortization	—			(520		)	(520		)	—			(1,950		)	(1,950		)
Impairment, due to branch divestiture	—			—			—			—			(1,949		)	(1,949		)
Measurement period adjustments	(687		)	—			(687		)	(1,593		)	—			(1,593		)
Balance, end of period	$	21,759		$	5,119		$	26,878		$	21,759		$	5,119		$	26,878

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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 September 30, 2017 and December 31, 2016, the balance of SBA loans sold and serviced by Atlantic Capital totaled $126.0 million and $107.0 million, respectively.

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

	Three months ended September 30,						Nine months ended September 30,
SBA Loan Servicing Assets	2017			2016			2017			2016
	(in thousands)
Beginning carrying value, net	$	2,564		$	2,117		$	2,359		$	1,687
Additions	157			328			750			889
Amortization	(221		)	(125		)	(609		)	(256		)
Impairment	—			—			—			—
Ending carrying value	$	2,500		$	2,320		$	2,500		$	2,320

At September 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	September 30, 2017				December 31, 2016
	(dollars in thousands)
Fair value of retained servicing assets	$	2,771			$	2,474
Weighted average life	6.62 years				6.52 years
Prepayment speed:	7.66			%	7.67			%
Decline in fair value due to a 10% adverse change	$	(108	)		$	(89	)
Decline in fair value due to a 20% adverse change	$	(183	)		$	(151	)
Weighted average discount rate	12.56			%	12.27			%
Decline in fair value due to a 100 bps adverse change	$	(117	)		$	(97	)
Decline in fair value due to a 200 bps adverse change	$	(200	)		$	(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 nine months endedSeptember 30, 2017 and 2016 are presented in the following table.

	Three months ended September 30,						Nine months ended September 30,
TriNet Servicing Assets	2017			2016			2017			2016
	(in thousands)
Beginning carrying value, net	$	731		$	1,471		$	825		$	1,175
Additions	—			—			—			406
Amortization	(46		)	(47		)	(140		)	(157		)
Impairment	—			(551		)	—			(551		)
Ending carrying value	$	685		$	873		$	685		$	873

At September 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	September 30, 2017				December 31, 2016
	(dollars in thousands)
Fair value of retained servicing assets	$	761			$	840
Weighted average life	8.25 years				8.47 years
Prepayment speed:	5.00			%	5.00			%
Decline in fair value due to a 10% adverse change	$	(11	)		$	(12	)
Decline in fair value due to a 20% adverse change	$	(22	)		$	(24	)
Weighted average discount rate	8.00			%	8.00			%
Decline in fair value due to a 100 bps adverse change	$	(21	)		$	(25	)
Decline in fair value due to a 200 bps adverse change	$	(41	)		$	(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.

23

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 Nine Months Ended
	September 30, 2017									September 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	$	(3,690	)	$	1,420		$	(2,270	)	$	(9,144	)	$	3,519		$	(5,625	)
Unrealized net gains (losses) on investment securities available-for-sale	706			(272		)	434			6,366			(2,450		)	3,916
Reclassification adjustment for net realized losses on investment securities available-for-sale	80			(31		)	49			80			(31		)	49
Unrealized net gains (losses) on derivatives	(121		)	46			(75		)	(327		)	125			(202		)
Accumulated other comprehensive income (loss) end of period	$	(3,025	)	$	1,163		$	(1,862	)	$	(3,025	)	$	1,163		$	(1,862	)

	For the Three Months Ended									For the Nine Months Ended
	September 30, 2016									September 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	$	5,691		$	(2,197	)	$	3,494		$	(2,455	)	$	939		$	(1,516	)
Unrealized net gains (losses) on investment securities available-for-sale	(853		)	329			(524		)	6,125			(2,354		)	3,771
Reclassification adjustment for net realized gains on investment securities available-for-sale	—			—			—			(44		)	17			(27		)
Unrealized net gains (losses) on derivatives	(438		)	169			(269		)	774			(301		)	473
Accumulated other comprehensive income (loss) end of period	$	4,400		$	(1,699	)	$	2,701		$	4,400		$	(1,699	)	$	2,701

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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 nine months endedSeptember 30, 2017 and 2016.

	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2017		2016		2017		2016
(in thousands, except share and per share amounts)
Net income available to common shareholders	$	4,052	$	3,708	$	11,611	$	11,786
Weighted average shares outstanding
Basic (1)	25,699,179		24,891,822		25,548,646		24,674,953
Effect of dilutive securities:
Stock options and warrants	191,600		368,458		251,205		431,297
Diluted	25,890,779		25,260,280		25,799,851		25,106,250
Income per common share:
Basic	$	0.16	$	0.15	$	0.45	$	0.48
Diluted	$	0.16	$	0.15	$	0.45	$	0.47
(1) Unvested restricted shares are participating securities and included in basic share calculations.

Stock options and warrants outstanding of 550 at September 30, 2017 and 162,428 at September 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 September 30, 2017, 25,716,418 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.

25

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 September 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 September 30, 2017 and December 31, 2016, Atlantic Capital had interest rate swaps designated as cash flow hedges with an aggregate notional amount of $75.0 million and $50.0 million, respectively.

No hedge ineffectiveness gains or losses were recognized on active cash flow hedges for the three and nine months endedSeptember 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 $237,000 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 September 30, 2017 and December 31, 2016, Atlantic Capital had interest rate swaps related to this program with an aggregate notional amount of $139.1 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 September 30, 2017 and December 31, 2016, Atlantic Capital had minimum collateral posting thresholds with certain of its derivative counterparties and posted collateral of $9.5 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 September 30, 2017 and December 31, 2016, Atlantic Capital had credit risk participation agreements with a notional amount of $15.6 million and $4.5 million, respectively.

26

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

Derivatives designated as hedging instruments under ASC 815
(in thousands)		September 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	$	—	$	—	$	50,000	$	186
Cash flow hedge of LIBOR based loans	Other liabilities	$	75,000	$	56	$	—	$	—
Derivatives not designated as hedging instruments under ASC 815
(in thousands)		September 30, 2017				December 31, 2016
Interest Rate Products	Balance Sheet Location	Notional Amount		Fair Value		Notional Amount		Fair Value
Customer swap positions	Other assets	$	69,543	$	1,168	$	70,352	$	1,364
Zero premium collar	Other assets	95,688		2,825		98,697		2,760
		$	165,231	$	3,993	$	169,049	$	4,124
Dealer offsets to customer swap positions	Other liabilities	$	69,543	$	1,214	$	70,352	$	1,371
Credit risk participation	Other liabilities	15,556		6		4,460		—
Dealer offset to zero premium collar	Other liabilities	95,688		2,908		98,697		2,760
		$	180,787	$	4,128	$	173,509	$	4,131

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

Derivatives in Cash Flow Hedging Relationships
	Three Months Ended September 30,											Nine Months Ended September 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	$	(75	)	$	(269	)	Interest income	$	84	$	177	$	(202	)	$	473	Interest income	$	331	$	546

27

NOTE 12 – OTHER BORROWINGS AND LONG TERM DEBT

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

	September 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 October 3, 2017	40,000		1.16	%	Fixed rate advance maturing January 17, 2017	40,000		0.64	%
Fixed rate advance maturing October 11, 2017	40,000		1.15	%	Fixed rate advance maturing January 24, 2017	40,000		0.61	%
Fixed rate advance maturing October 13, 2017	45,000		1.16	%	Fixed rate advance maturing January 30, 2017	30,000		0.62	%
Total	$	125,000			Total	$	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.

	September 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		507		634
Subordinated debt, net	$	49,493	$	49,366

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

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 September 30, 2017, approximately 3,825,000 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 September 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.

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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. The table below summarizes the assumptions used to calculate the fair value of options granted/modified during 2017:

	2017
Risk‑free interest rate	1.00-1.99%
Expected term in years	.25-8
Expected stock price volatility	23.2-25.3%
Dividend yield	—	%

The following table represents stock option and warrant activity for the nine months endedSeptember 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
Granted	30,400		12.39
Exercised	(718,912	)	10.53
Forfeited	(32,846	)	12.28
Expired	(635	)	126.22
Outstanding, September 30, 2017	763,711		$	12.64	5.77	$	4,348
Exercisable, September 30, 2017	518,336		$	11.73	4.77	$	3,466

Atlantic Capital recognized compensation expense relating to stock options of $191,000 and $472,000 for the three and nine months endedSeptember 30, 2017, respectively, and $192,000 and $638,000 for the three and nine months endedSeptember 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 nine months endedSeptember 30, 2017:

	Shares		Weighted Average Grant-Date Fair Value
Outstanding, December 31, 2016	259,165		$	13.70
Granted	110,293		17.85
Vested	(64,637	)	12.73
Forfeited	(36,674	)	14.88
Outstanding, September 30, 2017	268,147		$	15.47

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 and nine months ended September 30, 2017, compensation expense of $396,000 and $869,000, respectively, was recognized related to restricted stock awards. For the three and nine months endedSeptember 30, 2016, compensation expense of $71,000 and $527,000, respectively, was recognized related to restricted stock awards.

As of September 30, 2017, there was $3.0 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 3.11 years.

During the three months ended September 30, 2017, the Company modified options for 30,400 shares and 10,628 restricted stock awards to four individuals. The modifications allowed for the immediate vesting of the awards upon termination of service. The total incremental cost resulting from the modifications was $14,000 for the three and nine months ended September 30, 2017.

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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 nine months ended September 30, 2017. There was one transfer between Level 2 and Level 3 and no transfers between Level 1 and Level 2 during the nine months ended September 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 September 30, 2017 and December 31, 2016.

	Fair Value Measurements at
	September 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	$	—	$	34,783	$	—	$	34,783
U.S. states and political subdivisions	—		93,779		—		93,779
Trust preferred securities	—		4,675		—		4,675
Corporate debt securities	—		16,156		—		16,156
Mortgage-backed securities	—		297,612		—		297,612
Total securities available-for-sale	$	—	$	447,005	$	—	$	447,005
Interest rate derivative assets	$	—	$	3,993	$	—	$	3,993
Interest rate derivative liabilities	$	—	$	4,184	$	—	$	4,184

	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 nine months endedSeptember 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 September 30, 2017 and December 31, 2016.

September 30, 2017		Level 1 Fair Value Measurement		Level 2 Fair Value Measurement		Level 3 Fair Value Measurement		Total
	(in thousands)
Impaired Loans		$	—	$	—	$	2,970	$	2,970

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 September 30, 2017 and December 31, 2016.

	Fair Value Measurements at
	September 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	$	35,504	$	35,504	$	—	$	—
Interest bearing deposits in banks	40,558		40,558		—		—
Other short-term investments	5,189		5,189		—		—
Total securities available-for-sale	447,005		—		447,005		—
FHLB stock	7,788		—		—		7,788
Federal Reserve Bank stock	9,781		—		—		9,781
Loans held for investment, net	1,886,562		—		—		1,927,726
Loans held for sale	3,274		—		3,274		—
Derivative assets	3,993		—		3,993		—
Financial liabilities
Deposits	$	2,103,645	$	—	$	2,019,911	$	—
Subordinated debt	49,493		—		49,871		—
FHLB advances	125,000		—		125,007		—
Derivative financial instruments	4,184		—		4,184		—

	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 September 30, 2017 and December 31, 2016 was as follows:

	September 30, 2017		December 31, 2016
	(in thousands)
Financial Instruments whose contract amount represents credit risk:
Commitments to extend credit	$	686,685	$	617,432
Standby letters of credit	13,677		16,625
	$	700,362	$	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.

NOTE 16 – SUBSEQUENT EVENTS

On October 25, 2017, Atlantic Capital entered into a Separation Agreement with D. Michael Kramer in connection with the resignation from his position as President and Chief Operating Officer of the Company.

The Separation Agreement provides for benefits to and imposes obligations upon Mr. Kramer. Specifically, Mr. Kramer is entitled to receive the following payments and benefits under the Separation Agreement:

• all accrued but unpaid base salary through December 22, 2017;

• a cash payment of $407,265, which represents one (1) times his base salary;

• a cash payment of $183,269, which represents one (1) times his target bonus opportunity, under the Company’s Executive Officer Short Term Incentive Plan (the “STI Plan”) for 2017;

• a cash payment of $150,000, which represents the pro-rata portion of his STI Plan bonus opportunity deemed earned for 2017;

• a cash payment of $612,883, which represents accrued awards deemed earned under the Company’s Long Term Incentive Plan;

• acceleration of 14,000 shares of unvested restricted stock and 120,680 unvested options and extension of the post-termination exercise period for options; and

• reimbursement of COBRA premiums for 12 months following termination, so long as he is not entitled to obtain insurance from a subsequent employer.

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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;

• cyber-security incidents, including data security breaches or computer viruses;

• increased costs associated with operating as a public company;

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

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• 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 $4.1 million for the third quarter of 2017 compared to net income of $3.7 million for the third quarter of 2016. Diluted income per common share was $.16 for the third quarter of 2017 compared to diluted income per common share of $.15 for the third quarter of 2016.

For the nine months ended September 30, 2017, Atlantic Capital reported net income of $11.6 million compared to net income of $11.8 million for the first nine months ended September 30, 2016. Diluted income per common share was $.45 for the nine months ended September 30, 2017 compared to $.47 for the same period in 2016.

The increase in net income for the three months ended September 30, 2017, compared to the same period in 2016, was primarily the result of a $1.1 million, or 6%, increase in net interest income after provision for loan losses, offset by a decrease of $525,000 in noninterest income.

For the nine months ended September 30, 2017 compared to the first nine months of 2016, the decrease in net income was primarily attributable to a $4.7 million, or 27%, decrease in noninterest income and a $1.3 million, or 83%, 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 in the second quarter of 2016 and a $1.1 million, or 95%, decrease in TriNet lending activities. This was offset by a $2.6 million, or 5%, increase in net interest income before provision for loan losses and a $1.6 million, or 3%, reduction in noninterest expense.

Taxable equivalent net interest income was $20.5 million for the third quarter of 2017, compared to $19.5 million for the third quarter of 2016. Taxable equivalent net interest margin increased to 3.26% for the three months ended September 30, 2017 from 3.12% for the three months ended September 30, 2016. For the nine months ended September 30, 2017, taxable equivalent net interest income was $60.7 million compared to $57.7 million for the same period of 2016. Taxable equivalent net interest margin increased to 3.24% for the nine months ended September 30, 2017 from 3.11% for the nine months ended September 30, 2016. The margin increase for the three and nine months ended September 30, 2017 compared to the prior year was due to increased investment in non-taxable investment securities and increases in the Fed Funds rate.

Provision for loan losses for the quarter ended September 30, 2017 totaled $322,000, a decrease of $141,000 from the quarter ended September 30, 2016. The lower provision for the three months ended September 30, 2017 was primarily related to a decline in loan growth. For the nine months ended September 30, 2017, Atlantic Capital’s provision for loan losses was $2.9 million compared to a provision of $1.6 million for the first nine months of 2016. The increase was primarily related to an additional $1.0 million specific reserve that was recorded in the second quarter of 2017 as a result of the downgrade of a large loan relationship to nonperforming.

Noninterest income decreased $525,000, or 13%, to $3.5 million from the third quarter of 2016. The decrease was primarily due to a $312,000, or 49%, decrease in mortgage income which was attributable to higher interest rates and lower demand. For the first nine months of 2017, noninterest income decreased $4.7 million, or 27%, to $12.6 million. The decrease was primarily due to a $3.9 million gain on the sale of seven branches in the second quarter of 2016 as well as a $1.1 million, or 95%, decrease in gains on the sale of TriNet loans and a $453,000, or 32%, decrease in mortgage income.

For the third quarter of 2017, noninterest expense increased $208,000, or 1%, compared to the third quarter of 2016. The most significant component of the increase was professional services due to expenses related to the public offering of common stock by a selling stockholder completed during the third quarter of 2017. Noninterest expense totaled $52.9 million for the nine months ended September 30, 2017, compared to $54.5 million for the same period in 2016. The most significant component of the decrease for the nine month period was a $2.2 million, or 88%, reduction in merger and conversion costs due to the substantial completion of the integration of FSGBank, N.A. (“FSGBank”) into Atlantic Capital Bank N.A. (the “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 nine months ended September 30,
	Third Quarter			Second Quarter			First Quarter			Fourth Quarter			Third Quarter			2017			2016
INCOME SUMMARY
Interest income	$	24,566		$	24,545		$	22,716		$	22,530		$	22,428		$	71,827		$	66,171
Interest expense	4,060			3,833			3,208			3,029			2,941			11,101			8,480
Net interest income	20,506			20,712			19,508			19,501			19,487			60,726			57,691
Provision for loan losses	322			1,980			634			2,208			463			2,936			1,608
Net interest income after provision for loan losses	20,184			18,732			18,874			17,293			19,024			57,790			56,083
Noninterest income	3,477			5,287			3,857			4,430			4,002			12,621			17,302
Noninterest expense	17,504			17,623			17,744			18,775			17,296			52,871			54,505
Income before income taxes	6,157			6,396			4,987			2,948			5,730			17,540			18,880
Income tax expense	2,105			2,067			1,757			1,339			2,022			5,929			7,094
Net income	$	4,052		$	4,329		$	3,230		$	1,609		$	3,708		$	11,611		$	11,786
PER SHARE DATA
Basic earnings per share	$	0.16		$	0.17		$	0.13		$	0.06		$	0.15		$	0.45		$	0.48
Diluted earnings per share	0.16			0.17			0.13			0.06			0.15			0.45			0.47
PERFORMANCE MEASURES
Return on average equity	4.96		%	5.48		%	4.19		%	2.09		%	4.84		%	4.91		%	5.25		%
Return on average assets	0.60			0.63			0.48			0.24			0.55			0.57			0.58
Taxable equivalent net interest margin	3.26			3.26			3.20			3.11			3.12			3.24			3.11
Efficiency ratio	73.65			68.37			76.78			79.19			74.05			72.77			75.92
Equity to assets	12.31			11.82			11.10			11.13			11.17			12.31			11.17
ASSET QUALITY
Allowance for loan losses to loans	0.99		%	1.11		%	1.05		%	1.04		%	0.92		%	0.99		%	0.92		%
Net charge-offs	$	3,322		$	49		$	1,290		$	147		$	306		$	4,661		$	1,979
Net charge-offs to average loans(1)	0.68		%	0.01		%	0.26		%	0.03		%	0.06		%	0.32		%	0.13		%
NPAs to total assets	0.23			0.52			0.21			0.13			0.09			0.23			0.09
AVERAGE BALANCES
Total loans	$	1,934,505		$	1,962,374		$	1,949,385		$	2,036,995		$	2,003,180		$	1,948,700		$	1,965,092
Investment securities	455,868			455,090			419,335			349,762			335,880			443,565			372,208
Total assets	2,701,387			2,762,389			2,694,715			2,722,444			2,717,996			2,719,519			2,704,670
Deposits	2,121,263			2,158,675			2,111,992			2,094,885			2,163,569			2,130,677			2,164,477
Shareholders’ equity	323,832			316,825			308,261			308,588			306,642			316,361			299,048
Number of common shares - basic	25,699,179			25,621,910			25,320,690			25,027,304			24,891,822			25,548,646			24,674,953
Number of common shares - diluted	25,890,779			25,831,281			25,672,286			25,407,728			25,260,280			25,799,851			25,106,250
(1) Annualized.

38

Table 1 - Quarterly Selected Financial Data (continued)
(in thousands, except share and per share data)
	2017									2016						For the nine months ended September 30,
	Third Quarter			Second Quarter			First Quarter			Fourth Quarter			Third Quarter			2017			2016
AT PERIOD END
Total loans	$	1,908,706		$	1,963,835		$	1,930,965		$	2,016,549		$	2,054,702		$	1,908,706		$	2,054,702
Investment securities	447,005			450,273			456,942			347,705			348,484			447,005			348,484
Total assets	2,638,412			2,702,575			2,802,078			2,727,543			2,761,244			2,638,412			2,761,244
Deposits	2,103,645			2,113,954			2,203,039			2,237,580			2,188,856			2,103,645			2,188,856
Shareholders’ equity	324,754			319,435			310,967			303,658			308,463			324,754			308,463
Number of common shares outstanding	25,716,418			25,654,521			25,535,013			25,093,135			24,950,099			25,716,418			24,950,099
Non-GAAP Performance Measures Reconciliation
(in thousands)
	2017									2016						For the nine months ended September 30,
	Third Quarter			Second Quarter			First Quarter			Fourth Quarter			Third Quarter			2017			2016
Taxable equivalent interest income reconciliation
Interest income - GAAP	$	24,351		$	24,322		$	22,461		$	22,307		$	22,295		$	71,134		$	65,910
Taxable equivalent adjustment	215			223			255			223			133			693			261
Interest income - taxable equivalent	$	24,566		$	24,545		$	22,716		$	22,530		$	22,428		$	71,827		$	66,171
Taxable equivalent net interest income reconciliation
Net interest income - GAAP	$	20,291		$	20,489		$	19,253		$	19,278		$	19,354		$	60,033		$	57,430
Taxable equivalent adjustment	215			223			255			223			133			693			261
Net interest income - taxable equivalent	$	20,506		$	20,712		$	19,508		$	19,501		$	19,487		$	60,726		$	57,691
Taxable equivalent net interest income after provision for loan losses reconciliation
Net interest income after provision for loan losses - GAAP	$	19,969		$	18,509		$	18,619		$	17,070		$	18,891		$	57,097		$	55,822
Taxable equivalent adjustment	215			223			255			223			133			693			261
Net interest income after provision for loan losses - taxable equivalent	$	20,184		$	18,732		$	18,874		$	17,293		$	19,024		$	57,790		$	56,083
Taxable equivalent income before income taxes reconciliation
Income (loss) before income taxes - GAAP	$	5,942		$	6,173		$	4,732		$	2,725		$	5,597		$	16,847		$	18,619
Taxable equivalent adjustment	215			223			255			223			133			693			261
Income before income taxes - taxable equivalent	$	6,157		$	6,396		$	4,987		$	2,948		$	5,730		$	17,540		$	18,880
Taxable equivalent income tax expense reconciliation
Income tax expense - GAAP	$	1,890		$	1,844		$	1,502		$	1,116		$	1,889		$	5,236		$	6,833
Taxable equivalent adjustment	215			223			255			223			133			693			261
Income tax expense - taxable equivalent	$	2,105		$	2,067		$	1,757		$	1,339		$	2,022		$	5,929		$	7,094
Taxable equivalent net interest margin reconciliation
Net interest margin - GAAP	3.23		%	3.23		%	3.16		%	3.07		%	3.10		%	3.21		%	3.10		%
Impact of taxable equivalent adjustment	0.03			0.03			0.04			0.04			0.02			0.03			0.01
Net interest margin - taxable equivalent	3.26		%	3.26		%	3.20		%	3.11		%	3.12		%	3.24		%	3.11		%

39

RESULTS OF OPERATIONS

Net Interest Income and Net Interest Margin

Taxable equivalent net interest income for the third quarter of 2017 totaled $20.5 million, a $1.0 million, or 5%, increase compared to the third quarter of 2016. This increase was primarily driven by a $2.1 million, or 10%, increase in taxable equivalent interest income. The change in taxable equivalent net interest income primarily resulted from the following:

• a $1.1 million, or 76%, increase to $2.5 million in taxable equivalent interest income on investment securities, resulting from a $120.0 million, or 36%, increase in average balance, due primarily to the increased investment in non-taxable investment securities; and

• a $980,000, or 5%, increase in interest income on loans, resulting from increases in the Fed Funds rate.

Interest expense for the three months ended September 30, 2017 totaled $4.1 million, a $1.1 million, or 38%, increase from the same period of 2016. The rate paid on interest bearing liabilities increased 30 basis points from the third quarter of 2016 to the third 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 third quarter of 2017 in the amount of $75,000, compared to $170,000 in the third quarter of 2016.

Taxable equivalent net interest income for the nine months ended September 30, 2017 totaled $60.7 million, a $3.0 million, or 5%, increase compared to the same period in 2016. This increase was primarily driven by a $5.7 million, or 9%, increase in taxable equivalent interest income. The interest income increase primarily resulted from the following:

• a $2.9 million, or 64%, increase to $7.4 million in tax equivalent interest income on investment securities, resulting from a $71.4 million, or 19%, increase in average balance, due primarily to the increased investment in non-taxable investment securities; and

• a $2.4 million, or 4%, increase in interest income on loans, resulting from increases in the Fed Funds rate.

Interest expense for the nine months ended September 30, 2017 totaled $11.1 million, a $2.6 million, or 31%, increase from the same period of 2016, primarily due to a $1.8 million, or 32%, increase in interest paid on deposits. The rate paid on interest bearing liabilities increased 23 basis points from the first nine 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 nine months of 2017 in the amount of $280,000, as compared to $712,000 in the same period of 2016.

Taxable equivalent net interest margin increased to 3.26% from 3.12% for the three months ended September 30, 2017 compared to the three months ended September 30, 2016. Taxable equivalent net interest margin for the nine months ended September 30, 2017 increased to 3.24% compared to 3.11% for the nine months ended September 30, 2016. The primary reasons for the increase in taxable equivalent net interest margin for the three and nine month periods were the higher level of investment in non-taxable investment securities and higher interest rates on loans resulting from Fed Funds rate increases.

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.

40

Table 2 - Average Balance Sheets and Net Interest Analysis
(dollars in thousands; taxable equivalent)
	Three months ended September 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	$	69,839	$	216	1.23	%	$	109,883	$	158	0.57	%
Other short-term investments	13,830		67		1.92		18,741		60		1.27
Investment securities:
Taxable investment securities	373,087		1,812		1.93		283,303		1,033		1.45
Non-taxable investment securities(1)	82,781		701		3.36		52,577		393		2.97
Total investment securities	455,868		2,513		2.19		335,880		1,426		1.69
Total loans	1,934,505		21,491		4.41		2,003,180		20,511		4.07
FHLB and FRB stock	18,494		279		5.99		17,192		273		6.32
Total interest-earning assets	2,492,536		24,566		3.91		2,484,876		22,428		3.59
Non-earning assets	208,851						233,120
Total assets	$	2,701,387					$	2,717,996
Liabilities
Interest bearing deposits:
NOW, money market, and savings	1,192,664		1,886		0.63		1,236,828		1,338		0.43
Time deposits	143,862		292		0.81		175,135		241		0.55
Brokered deposits	156,708		515		1.30		196,598		377		0.76
Total interest-bearing deposits	1,493,234		2,693		0.72		1,608,561		1,956		0.48
Other borrowings	179,808		543		1.20		157,957		170		0.43
Long-term debt	49,465		824		6.61		49,296		815		6.58
Total interest-bearing liabilities	1,722,507		4,060		0.94		1,815,814		2,941		0.64
Demand deposits	628,029						555,008
Other liabilities	27,019						40,532
Shareholders’ equity	323,832						306,642
Total liabilities and shareholders’ equity	$	2,701,387					$	2,717,996
Net interest spread					2.97	%					2.95	%
Net interest income and net interest margin(2)			$	20,506	3.26	%			$	19,487	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.

41

Table 2 - Average Balance Sheets and Net Interest Analysis (continued)
(dollars in thousands; taxable equivalent)
	Nine months ended September 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	$	76,079	$	614	1.08	%	$	100,279	$	481	0.64	%
Other short-term investments	16,198		231		1.91		24,120		244		1.35
Investment securities:
Taxable investment securities	362,080		5,197		1.92		337,263		3,714		1.47
Non-taxable investment securities(1)	81,485		2,167		3.56		34,945		768		2.94
Total investment securities	443,565		7,364		2.22		372,208		4,482		1.61
Total loans	1,948,700		62,846		4.31		1,965,092		60,418		4.11
FHLB and FRB stock	19,147		772		5.39		13,825		546		5.28
Total interest-earning assets	2,503,689		71,827		3.84		2,475,524		66,171		3.57
Non-earning assets	215,830						229,146
Total assets	$	2,719,519					$	2,704,670
Liabilities
Interest bearing deposits:
NOW, money market, and savings	1,171,369		4,842		0.55		1,182,520		3,646		0.41
Time deposits	152,190		833		0.73		221,937		654		0.39
Brokered deposits	182,195		1,546		1.13		210,803		1,170		0.74
Total interest-bearing deposits	1,505,754		7,221		0.64		1,615,260		5,470		0.45
Other borrowings	196,352		1,409		0.96		156,148		553		0.47
Long-term debt	49,423		2,471		6.68		49,254		2,457		6.66
Total interest-bearing liabilities	1,751,529		11,101		0.85		1,820,662		8,480		0.62
Demand deposits	624,923						549,217
Other liabilities	26,706						35,743
Shareholders’ equity	316,361						299,048
Total liabilities and shareholders’ equity	$	2,719,519					$	2,704,670
Net interest spread					2.99	%					2.95	%
Net interest income and net interest margin(2)			$	60,726	3.24	%			$	57,691	3.11	%
(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.

42

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 September 30, 2017 Compared to 2016 Increase (decrease) Due to Changes in:								Nine Months Ended September 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	$	(124	)	$	182		$	58	$	(195	)	$	328	$	133
Other short-term investments	(24		)	31			7		(113		)	100		(13		)
Investment securities:
Taxable investment securities	436			343			779		356			1,127		1,483
Non-taxable investment securities	256			52			308		1,238			161		1,399
Total investment securities	692			395			1,087		1,594			1,288		2,882
Total loans	(763		)	1,743			980		(529		)	2,957		2,428
FHLB and FRB stock	20			(14		)	6		215			11		226
Total interest-earning assets	(199		)	2,337			2,138		972			4,684		5,656
Interest bearing liabilities
Interest bearing deposits:
NOW, money market, and savings	(70		)	618			548		(46		)	1,242		1,196
Time deposits	(63		)	114			51		(382		)	561		179
Brokered deposits	(131		)	269			138		(243		)	619		376
Total interest-bearing deposits	(264		)	1,001			737		(671		)	2,422		1,751
Total borrowings	66			307			373		288			568		856
Total long-term debt	3			6			9		8			6		14
Total interest-bearing liabilities	(195		)	1,314			1,119		(375		)	2,996		2,621
Change in net interest income	$	(4	)	$	1,023		$	1,019	$	1,347		$	1,688	$	3,035

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 September 30, 2017, the provision for loan losses was $322,000, a decrease of $141,000, or 30%, compared to the three months ended September 30, 2016. For the nine months ended September 30, 2017, the provision for loan losses was $2.9 million, an increase of $1.3 million, or 83%, compared to the nine months ended September 30, 2016.

The lower provision for the three months ended September 30, 2017 was primarily related to a reduction in loan growth. The higher provision for the nine months ended September 30, 2017 was primarily related to the downgrade of a $7.7 million loan relationship to nonperforming in the second quarter of 2017 and an additional $1.0 million specific reserve related to this downgrade. A $3.3 million charge-off was recorded in the third quarter of 2017 for this relationship. At September 30, 2017, nonperforming loans totaled $4.6 million compared to $790,000 at September 30, 2016. Net loan charge-offs were .68% and .32%, respectively, of average loans (annualized) for the three and nine months ended September 30, 2017 compared to .06% and .13%, respectively, for the three and nine months ended September 30, 2016. The allowance for loan losses to total loans at September 30, 2017 was 0.99%, compared to .92% at September 30, 2016.

43

Noninterest Income

Noninterest income for the three and nine months ended September 30, 2017 was $3.5 million and $12.6 million, respectively, a decrease of $525,000, or 13%, compared to the third quarter of 2016, and a decrease of $4.7 million, or 27%, from the nine months ended September 30, 2016. The following table presents the components of noninterest income.

Table 4 - Noninterest Income
(dollars in thousands)
	Three months ended September 30,					Change						Nine months ended September 30,					Change
	2017			2016		$			%			2017			2016		$			%
Service charges	$	1,247		$	1,270	$	(23	)	(2	)	%	$	3,870		$	4,160	$	(290	)	(7	)	%
Securities gains, net	(80		)	—		(80		)	—			(80		)	44		(124		)	(282	)
Gain on sales of other assets	44			71		(27		)	(38	)		788			150		638			425
Mortgage income	320			632		(312		)	(49	)		965			1,418		(453		)	(32	)
Trust income	437			361		76			21			1,332			1,061		271			26
Derivatives income (loss)	(3		)	69		(72		)	(104	)		62			232		(170		)	(73	)
Bank owned life insurance	384			424		(40		)	(9	)		1,146			1,215		(69		)	(6	)
SBA lending activities	888			959		(71		)	(7	)		3,286			3,043		243			8
TriNet lending activities	20			—		20			—			60			1,144		(1,084		)	(95	)
Gains on sale of branches	—			—		—			—			302			3,885		(3,583		)	(92	)
Other noninterest income	220			216		4			2			890			950		(60		)	(6	)
Total noninterest income	$	3,477		$	4,002	$	(525	)	(13	)	%	$	12,621		$	17,302	$	(4,681	)	(27	)	%

Service charges for the three and nine months ended September 30, 2017 decreased $23,000, or 2%, and $290,000, or 7%, 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 and one branch in the second quarter of 2017.

Gain on sales of other assets for the first nine months of 2017 increased $638,000, or 425% from the same period 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. Mortgage income for the three and nine months ended September 30, 2017 decreased $312,000, or 49%, and $453,000, or 32%, respectively, from the same periods in 2016 due to higher interest rates and lower demand. Trust income for the three and nine months ended September 30, 2017 increased $76,000, or 21%, and $271,000, or 26%, respectively, from the same periods in 2016 due to an increase in managed assets.

Income from SBA lending activities for the third quarter of 2017 decreased $71,000, or 7%, from the same period in 2016, due to a lower level of loan sales. During the three months ended September 30, 2017 and 2016, guaranteed portions of 14 and 16 SBA loans with principal balances of $11.8 million and $18.5 million, respectively, were sold in the secondary market. Income from SBA lending activities for the first nine months of 2017 increased $243,000, or 8%, from the same period in 2016, due to a higher level of loan sales earlier in 2017. During the nine months ended September 30, 2017 and 2016, guaranteed portions of 35 and 36 SBA loans with principal balances of $48.7 million and $48.5 million, respectively, were sold in the secondary market. During the three and nine months ended September 30, 2016, the TriNet lending division contributed $0 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 nine months ended September 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.

44

Noninterest Expense

The following table presents the components of noninterest expense.

Table 5 - Noninterest Expense
(dollars in thousands)
	Three months ended September 30,				Change						Nine months ended September 30,				Change
	2017		2016		$			%			2017		2016		$			%
Salaries and employee benefits	$	10,409	$	10,059	$	350		3		%	$	32,077	$	31,034	$	1,043		3		%
Occupancy	1,129		1,235		(106		)	(9	)		3,433		3,609		(176		)	(5	)
Equipment and software	776		862		(86		)	(10	)		2,577		2,272		305			13
Professional services	1,595		442		1,153			261			3,472		1,950		1,522			78
Postage, printing and supplies	63		61		2			3			226		389		(163		)	(42	)
Communications and data processing	982		617		365			59			3,038		2,227		811			36
Marketing and business development	272		269		3			1			721		853		(132		)	(15	)
FDIC premiums	308		415		(107		)	(26	)		754		1,306		(552		)	(42	)
Merger and conversion costs	—		579		(579		)	(100	)		304		2,538		(2,234		)	(88	)
Amortization of intangibles	391		520		(129		)	(25	)		1,286		1,950		(664		)	(34	)
Foreclosed property/problem asset expense	7		39		(32		)	(82	)		117		198		(81		)	(41	)
Other noninterest expense	1,572		2,198		(626		)	(28	)		4,866		6,179		(1,313		)	(21	)
Total noninterest expense	$	17,504	$	17,296	$	208		1		%	$	52,871	$	54,505	$	(1,634	)	(3	)	%

Noninterest expense for the third quarter of 2017 was $17.5 million, an increase of $208,000, or 1%, from the third quarter of 2016. For the nine months ended September 30, 2017, noninterest expense totaled $52.9 million, a decrease of $1.6 million, or 3%, 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 September 30, 2017 totaled $10.4 million, an increase of $350,000, or 3%, from the same period in 2016. For the first nine months of 2017, salaries and employee benefits totaled $32.1 million, an increase of $1.0 million, or 3%, from the first nine months of 2016. The increase was primarily attributable to a higher headcount. Full time equivalent headcount totaled 343 at September 30, 2017, compared to 328 at September 30, 2016, an increase of 15 positions, mainly due to increased staffing needs of the Bank and the opening of the Charlotte office.

Occupancy costs were $1.1 million for the third quarter of 2017, a decrease of $106,000, or 9%, compared to the third quarter of 2016. For the nine months ended September 30, 2017, occupancy costs were $3.4 million, a decrease of $176,000, or 5%, from the first nine months of 2016. The decrease was due to the divestiture of seven branches in the second quarter of 2016 and one branch in the second quarter of 2017.

Equipment and software costs were $776,000 for the third quarter of 2017, a decrease of $86,000, or 10%, compared to the third quarter of 2016. For the nine months ended September 30, 2017, equipment and software costs were $2.6 million, an increase of $305,000, or 13%, from the first nine months of 2016. The decrease in the third quarter of 2017 was due to lower ATM managed services costs and depreciation. The increase for the nine months ended September 30, 2017 was due to higher maintenance contracts and an increase in ATM managed services costs due to higher payments made in the first and second quarters of 2017.

Professional services costs were $1.6 million for the third quarter of 2017, an increase of $1.2 million, or 261%, compared to the third quarter of 2016. For the nine months ended September 30, 2017, professional services costs were $3.5 million, an increase of $1.5 million, or 78%, from the first nine months of 2016. The increase was due to higher accounting and legal fees related to the public offering of Atlantic Capital stock to a selling stockholder during the third quarter of 2017.

Communications and data processing costs were $982,000 for the third quarter of 2017, an increase of $365,000, or 59%, compared to the third quarter of 2016. For the nine months ended September 30, 2017, communications and data processing costs were $3.0 million, an increase of $811,000, or 36%, from the first nine months of 2016. In 2016, core processing expenses were reduced by vendor credits.

Merger and conversion costs were $0 for the third quarter of 2017, a decrease of $579,000, or 100%, compared to the third quarter of 2016. For the nine months ended September 30, 2017, merger and conversion costs were $304,000, a decrease of $2.2 million, or 88%, from the first nine months of 2016. Merger expenses include professional fees, severance, rebranding and data conversion costs related to the acquisition of First Security.

45

Amortization of intangibles includes the amortization of core deposit intangible related to the acquisition of First Security and totaled $391,000 and $1.3 million for the three and nine months ended September 30, 2017, respectively, and $520,000 and $2.0 million for the three and nine months ended September 30, 2016, respectively. The decrease in 2017 was mainly due to the write-off of core deposit 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 three and nine months ended September 30, 2017 was $1.9 million and $5.2 million, respectively, as compared with $1.9 million and $6.8 million for the same periods in 2016. The effective tax rate (as a percentage of pre-tax earnings) was 31.8% and 31.1%, respectively, for the three and nine months ended September 30, 2017 compared to 33.8% and 36.7%, respectively, for the same periods in 2016. The decrease in the effective tax rate for the three and nine months ended September 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 September 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 September 30, 2017 and 2016, Atlantic Capital had a deferred tax asset valuation allowance totaling $9.2 million and $9.0 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.

46

FINANCIAL CONDITION

Total assets at September 30, 2017 and December 31, 2016 were $2.64 billion and $2.73 billion, respectively. Average total assets for the third quarter of 2017 were $2.70 billion, compared to $2.72 billion in the third quarter of 2016.

Loans

At September 30, 2017, total loans decreased $108.0 million, or 5%, to $1.91 billion compared to $2.02 billion at December 31, 2016, primarily due to the sale of $30.9 million in loans in connection with the Cleveland branch sale, as well as a decrease of $106.0 million in mortgage warehouse participations, resulting from a decrease in commitments and the market effect of increases in the Fed Funds rate. Table 6 provides additional information regarding Atlantic Capital’s loan portfolio.

Table 6 - Loans
(dollars in thousands)
	September 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	3,274					4,302
Total loans held for sale	$	3,274				$	35,219
Loans held for investment
Commercial loans:
Commercial and industrial	$	562,426		30	%	$	531,061		27	%
Commercial real estate:
Owner occupied	348,447			18		352,523			18
Non-owner occupied	596,407			31		506,255			26
Construction and land	132,080			7		219,352			11
Mortgage warehouse participations	41,551			2		147,519			7
Total commercial loans	1,680,911			88		1,756,710			89
Residential:
Residential mortgages	101,976			5		101,921			5
Home equity	78,773			4		77,358			4
Total residential loans	180,749			9		179,279			9
Consumer	31,750			2		27,338			1
Other	16,106			1		21,565			1
	1,909,516					1,984,892
Less net deferred fees and other unearned income	(4,084		)			(3,562		)
Total loans held for investment	1,905,432					1,981,330
Total loans	$	1,908,706				$	2,016,549

47

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 $1.1 million were not classified as nonaccrual at September 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 September 30, 2017, Atlantic Capital’s nonperforming assets totaled $6.0 million, or 0.23% of assets, compared to $3.5 million, or 0.13% of assets, at December 31, 2016. The increase was primarily due to the Bank placing two loan relationships totaling $2.4 million on nonaccrual status.

Nonaccrual loans totaled $4.1 million and $621,000 as of September 30, 2017 and December 31, 2016, respectively. The increase was primarily due to the Bank placing two loan relationships totaling $2.4 million on nonaccrual status. Loans past due 90 days and still accruing totaled $495,000 at September 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)
	September 30, 2017			June 30, 2017			March 31, 2017			December 31, 2016			September 30, 2016
Nonaccrual loans	$	4,058		$	11,909		$	3,212		$	621		$	28
Loans past due 90 days and still accruing	495			391			771			994			762
Total nonperforming loans* (NPLs)	4,553			12,300			3,983			1,615			790
Other real estate owned	1,494			1,819			1,869			1,872			1,727
Total nonperforming assets (NPAs)	$	6,047		$	14,119		$	5,852		$	3,487		$	2,517
NPLs as a percentage of total loans	0.24		%	0.63		%	0.21		%	0.08		%	0.04		%
NPAs as a percentage of total assets	0.23			0.52			0.21			0.13			0.09

*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.

48

Table 8 - Troubled Debt Restructurings
(dollars in thousands)
	September 30, 2017		December 31, 2016
Accruing TDRs	$	5,612	$	6,602
Nonaccruing TDRs	1,508		—
Total TDRs	$	7,120	$	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 $61.9 million and $47.6 million, respectively, as of September 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 September 30, 2017, the allowance for loan losses totaled $18.9 million, or 0.99% of loans, compared to $20.6 million, or 1.04% of loans, at December 31, 2016. The decrease in the allowance was primarily related to the $3.3 million charge-off of a loan relationship and the reversal of the specific reserve.

Net charge-offs for the third quarter of 2017 and 2016 were $3.3 million and $306,000, respectively. For the nine months ended September 30, 2017, net charge-offs totaled $4.7 million compared to $2.0 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
	Third				Second				First				Fourth				Third
	Quarter				Quarter				Quarter				Quarter				Quarter
Balance at beginning of period	$	21,870			$	19,939			$	20,595			$	18,534			$	18,377
Provision for loan losses	314				2,048				565				2,134				463
Provision for PCI loan losses	8				(68		)		69				74				—
Loans charged-off:
Commercial and industrial	(3,292		)		—				(781		)		—				(61		)
Commercial real estate	(16		)		—				(132		)		24				(226		)
Residential mortgages	—				—				(46		)		—				—
Home equity	(31		)		(8		)		—				—				(9		)
Consumer	(7		)		(57		)		(332		)		(158		)		(60		)
Other	—				—				—				—				(5		)
Total loans charged-off	(3,346		)		(65		)		(1,291		)		(134		)		(361		)
Recoveries on loans previously charged-off:
Commercial and industrial	1				7				—				—				2
Commercial real estate	—				2				—				(15		)		20
Construction and land	15				—				—				—				12
Residential mortgages	—				1				—				—				5
Home equity	—				1				—				—				2
Consumer	8				5				1				2				12
Other	—				—				—				—				2
Total recoveries	24				16				1				(13		)		55
Net charge-offs	$	(3,322	)		$	(49	)		$	(1,290	)		$	(147	)		$	(306	)
Balance at period end	$	18,870			$	21,870			$	19,939			$	20,595			$	18,534
Net charge-offs (annualized) to average loans	0.68			%	0.01			%	0.26			%	0.03			%	0.06			%
Allowance for loan losses to total loans	0.99				1.11				1.05				1.04				0.92

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Investment Securities

Investment securities available-for-sale totaled $447.0 million at September 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 September 30, 2017, investment securities available-for-sale had a net unrealized loss of $3.2 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 September 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 September 30, 2017 and December 31, 2016 are provided in Table 10.

Table 10 - Securities
(dollars in thousands)
	September 30, 2017				December 31, 2016
Available for Sale Securities	Amortized Cost		Fair Value		Amortized Cost		Fair Value
U.S. Government agencies	$	34,961	$	34,783	$	21,485	$	21,152
U.S. states and political divisions	96,813		93,779		96,908		90,172
Trust preferred securities	4,747		4,675		4,727		4,525
Corporate debt securities	16,700		16,156		19,928		19,231
Residential mortgage-backed securities	296,978		297,612		214,297		212,625
Total	$	450,199	$	447,005	$	357,345	$	347,705

The effective duration of Atlantic Capital’s securities at September 30, 2017 was 4.76 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 September 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.

50

LIQUIDITY AND CAPITAL RESOURCES

Deposits

At September 30, 2017, total deposits were $2.10 billion, a decrease of $133.9 million, or 6%, from December 31, 2016. Noninterest-bearing demand deposits decreased $44.2 million, or 7%, and deposits to be assumed in branch sale decreased $31.6 million, or 100%, from December 31, 2016 to September 30, 2017.

Total average deposits for the quarter ended September 30, 2017 were $2.12 billion, a decrease of $42.3 million, or 2%, from the same period in 2016. Average noninterest-bearing demand deposits increased $73.0 million, or 13%, and average brokered deposits decreased $39.9 million, or 20%, from the quarter ended September 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
	September 30, 2017			June 30, 2017			March 31, 2017			December 31, 2016			September 30, 2016			Linked Quarter Change			Year Over Year Change
DDA	$	599,292		$	612,744		$	606,386		$	643,471		$	557,783		$	(13,452	)	$	41,509
NOW	270,740			250,254			259,760			264,062			260,531			20,486			10,209
Savings	30,131			30,170			30,756			27,932			29,658			(39		)	473
Money Market	865,238			882,824			916,390			912,493			974,072			(17,586		)	(108,834		)
Time	144,250			142,915			150,867			157,810			172,348			1,335			(28,098		)
Brokered	193,994			195,047			209,385			200,223			194,464			(1,053		)	(470		)
Deposits to be assumed in branch sale	—			—			29,495			31,589			—			—			—
Total Deposits	$	2,103,645		$	2,113,954		$	2,203,039		$	2,237,580		$	2,188,856		$	(10,309	)	$	(85,211	)
Payments Clients	$	239,079		$	250,104		$	321,899		$	347,833		$	212,049		$	(11,025	)	$	27,030
Average Deposits(1)
	2017									2016						Linked Quarter Change			Year Over Year Change
	Third Quarter			Second Quarter			First Quarter			Fourth Quarter			Third Quarter
DDA	$	628,029		$	626,330		$	620,325		$	591,166		$	555,008		$	1,699		$	73,021
NOW	291,810			293,160			290,862			253,187			282,701			(1,350		)	9,109
Savings	30,236			30,468			30,306			29,741			30,692			(232		)	(456		)
Money Market	870,618			860,116			815,920			853,281			923,435			10,502			(52,817		)
Time	143,862			149,898			163,021			169,677			175,135			(6,036		)	(31,273		)
Brokered	156,708			198,703			191,558			197,833			196,598			(41,995		)	(39,890		)
Total Deposits	$	2,121,263		$	2,158,675		$	2,111,992		$	2,094,885		$	2,163,569		$	(37,412	)	$	(42,306	)
Payments Clients	$	209,851		$	244,157		$	273,630		$	211,000		$	184,895		$	(34,306	)	$	24,956
Noninterest bearing deposits as a percentage of average deposits	29.6		%	29.0		%	29.4		%	28.2		%	25.7		%
Cost of deposits	0.50		%	0.46		%	0.39		%	0.37		%	0.36		%
(1) Includes average balances of deposits to be assumed in branch sale.

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Short-Term Borrowings

There were no securities sold under repurchase agreements with commercial checking customers or balances of federal funds purchased as of September 30, 2017 or December 31, 2016.

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 September 30, 2017 and December 31, 2016, Atlantic Capital had FHLB advances of $125.0 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 September 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 September 30, 2017, management believes that Atlantic Capital had sufficient on-balance sheet liquidity to meet its funding needs.

At September 30, 2017, Atlantic Capital had access to $375.0 million in unsecured borrowings and $695.2 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 September 30, 2017 was $324.8 million, an increase of $21.1 million, or 7%, 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
	September 30, 2017			December 31, 2016			September 30, 2017			December 31, 2016			Minimum		Well capitalized		Minimum Capital plus capital conservation buffer 2019
Risk based ratios:
Common equity tier 1 capital	11.3		%	10.3		%	12.8		%	11.8		%	4.5	%	6.5	%	7.0	%
Tier 1 Capital	11.3			10.3			12.8			11.8			6.0		8.0		8.5
Total capital	14.3			13.3			13.7			12.7			8.0		10.0		10.5
Leverage ratio	9.9			9.1			11.2			10.4			4.0		5.0		N/A
Common equity tier 1 capital	$	261,389		$	241,313		$	296,437		$	276,778
Tier 1 capital	261,389			241,313			296,437			276,778
Total capital	330,596			311,954			316,151			298,053
Risk weighted assets	2,313,663			2,343,622			2,313,329			2,344,387
Quarterly average total assets for leverage ratio	2,635,760			2,654,473			2,641,320			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 11.3% at September 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)
	September 30, 2017
Tier 1 capital	$	261,389
Less: restricted core capital	—
Tier 1 common equity	$	261,389
Risk-adjusted assets	$	2,313,663
Tier 1 common equity ratio	11.3		%

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 September 30, 2017, Atlantic Capital had issued commitments to extend credit of approximately $686.7 million and standby letters of credit of approximately $13.7 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

53

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 September 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 Management

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 September 30, 2017, indicates that, over a 12-month period, net interest income is estimated to increase by 13.74% 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.

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

Table 14 - Net Interest Income Sensitivity Simulation Analysis
	Estimated change in net interest income
Change in interest rate (basis point)	September 30, 2017			December 31, 2016
-100	(9.44	)	%	(8.59	)	%
+100	6.70			8.20
+200	13.74			16.39
+300	20.50			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 September 30, 2017, the MVE calculated with a 200-basis point shock up in rates decreased by (1.41)% from the base case MVE value. Table 15 presents the MVE profile as of September 30, 2017 and December 31, 2016.

Table 15 - Market Value of Equity Modeling Analysis
	Estimated % change in MVE
Change in interest rate (basis point)	September 30, 2017			December 31, 2016
-100	(1.09	)	%	0.90		%
+100	(0.22	)		(2.39	)
+200	(1.41	)		(4.52	)
+300	(3.22	)		(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 September 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 September 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 September 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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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	Separation Agreement, dated October 25, 2017, by and among Atlantic Capital Bancshares, Inc., Atlantic Capital Bank, N.A. and D. Michael Kramer, which is incorporated by reference to Exhibit 10.1 to our Current Report on Form 8-K (file no. 001-37615), filed with the Securities and Exchange Commission on October 26, 2017.*
10.2	Atlantic Capital Bancshares, Inc. 2017 Change in Control Plan.*
10.3	Atlantic Capital Bank Severance 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 September 30, 2017, formatted in XBRL (eXtensible Business Reporting Language): (i) the Consolidated Balance Sheets as of September 30, 2017 and December 31, 2016; (ii) the Consolidated Statements of Income for the three and nine months ended September 30, 2017 and 2016; (iii) the Consolidated Statements of Comprehensive Income for the three and nine months ended September 30, 2017 and 2016; (iv) the Consolidated Statements of Shareholders’ Equity for the nine months ended September 30, 2017 and 2016; (v) the Consolidated Statements of Cash Flows for the nine months ended September 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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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: November 9, 2017

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EX-10.2

Exhibit 10.2

ATLANTIC CAPITAL BANCSHARES, INC.

2017 CHANGE IN CONTROL PLAN

EFFECTIVE OCTOBER 19, 2017

SECTION 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. The Plan is also intended to further the best interests of the Corporation and its shareholders by protecting against the loss or distraction of selected senior officers in the event of a Change in Control.

SECTION 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. The Board of Directors shall have the authority to assume administration of the Plan at any time, in whole or in part, and, in such event, references to the “Compensation Committee” shall include the Board of Directors. The Compensation Committee may in its discretion delegate to the Chief Executive Officer or other officers ministerial or other administrative authority under the Plan, subject to the requirements of Applicable Law and any terms and conditions established by the Compensation Committee.

SECTION 3.PARTICIPATION

3.1. Senior Officers. The Compensation Committee shall select the individuals who shall (subject to Section 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 (as determined by the Compensation Committee). For the avoidance of doubt, those individuals who have been previously designated by the Compensation Committee prior to the Effective Date of this Plan to participate in the Corporation’s Prior Change in Control Plan shall continue to be covered by such Prior Change in Control Plan and their rights under such plan shall not be impacted by the adoption of this Plan unless otherwise determined by the Compensation Committee in accordance with the terms of the Prior Change in Control Plan and agreed to by the individual.

3.2. Termination of Participation. An individual's status as a Participant will (subject to Section 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.

SECTION 4.DEFINITIONS

In addition to other terms defined herein, the following terms shall have the meanings given:

Affiliate: Means any majority-owned subsidiary or other entity controlled by, controlling or under common control with the Corporation.

Applicable Law: Means any applicable laws, rules or regulations, including the listing or other rules of any applicable stock exchange.

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

Base Salary: Means a Participant's base salary as of the date of the Participant’s 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 annual cash incentive 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 cash 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 applicable to 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, 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 (i) there shall have been delivered by the Corporation to the Participant a written notice which sets forth the basis for such alleged "Cause" in reasonable detail, (ii) the Participant after the delivery of such notice shall have had thirty (30) business days from the date of delivery of such notice to address and cure any act or omission which is set forth in such notice as the basis for such alleged "Cause" and (iii) the Participant fails to cure such act or omission before the end of such thirty (30)-business day period. Without in any way limiting the effect of the foregoing, for purposes of the Plan, a Participant’s employment shall also be deemed to have been terminated for Cause if, after the Participant’s employment has terminated, facts and circumstances are discovered that would have justified, in the opinion of the Compensation Committee, a termination for Cause.

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 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 consummation of the sale of substantially all of the assets of the Corporation or the Bank or a liquidation of the Corporation or the Bank.

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 until the first to expire of (i) the 18-month period which starts on the date of

3

the Participant's Separation from Service or (ii) the date the Participant is first eligible to receive at least self-only healthcare coverage from a new employer.

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

Compensation Committee: Means the Compensation Committee of the Corporation's Board of Directors or any successor to such committee. It is intended that Compensation Committee members shall be independent under applicable standards to the extent required by Applicable Law.

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. The term “Corporation” may also include the Bank and any other Affiliate, if and to the extent determined by the Compensation Committee.

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

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

Good Reason: Means any of the following without the Participant’s consent:

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

(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 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 (i) there shall have been delivered by the Participant to the Corporation, within sixty (60) business days of the date the Participant has knowledge of the initial existence of any such event (or the date on which the Participant reasonably would be expected to have knowledge of the initial existence of any such event), a written notice which sets forth the basis for such alleged "Good Reason" in reasonable detail, (ii) the Corporation after the delivery of such notice shall have had thirty (30) business days to address and cure any act or omission set forth in such notice as the basis for such alleged "Good Reason" and (iii) the Corporation fails to cure such act or omission before the end of such thirty (30)-business day period.

4

Participant: Means a senior officer of the Corporation or the Bank who is selected by the Compensation Committee to participate in the Plan.

Plan: Means this Atlantic Capital Bancshares, Inc. 2017 Change in Control Plan (Effective October 19, 2017), as amended from time to time in accordance with Section 6.

Prior Change in Control Plan: Means the Atlantic Capital Bancshares, Inc. Change in Control Plan approved by the Board on July 17, 2014.

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 substantially 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 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 Code Section 409A.

Stock Plan: Means, collectively, the Corporation’s 2015 Stock Incentive Plan, the Corporation’s 2006 Stock Incentive Plan and any other stock incentive plan maintained by the Corporation, in each case as amended and/or restated.

SECTION 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 by the Corporation or the Bank without Cause or a resignation of employment by the Participant for Good Reason, the Corporation shall (subject to Section 5.4 and Section 5.5) pay the Cash Severance Package in accordance with this Section 5.1, less applicable withholdings.

(b)Timing. The payments described in Section 5.1(a) shall (subject to Section 5.4 and Section 5.5) be made by the Corporation in equal or substantially equal installments on each regular pay day for the 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 by the Corporation or the Bank without Cause or a resignation of employment by the Participant for Good Reason, the Corporation shall (subject to Section 5.4

5

and Section 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 Code Section 409A, (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 Section 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. Subject to the terms of the applicable Stock Plan, if during the Protection Period a Participant has a Separation from Service by reason of a termination of his or her employment by the Corporation or the Bank without Cause or a resignation of employment by the Participant 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 Section 5.4 and Section 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 Section 5.4 and Section 5.5) vest 100% and shall be paid at "target" in cash or shares of the Company’s common stock (as determined in the Board’s or the Compensation Committee’s discretion) when, and if, permissible under Section 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 Section 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 incentive plan awards have been paid pursuant to Section 5.3, any payment then due pursuant to Section 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.

(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. Provided that the Release shall have become irrevocable, and unless otherwise provided under the Plan, 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 Code Section 409A, may be paid or made available before the end of such period. When payments are first to be made under this Section 5.4(c) or benefits are first to be made available under this Section 5.4(c), any payments or benefits which had been

6

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.

5.5. Forfeiture Event. If a Participant has a Forfeiture Event, 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. Further, the Corporation shall have the right to suspend payment of benefits under the Plan in the event that the Corporation believes that a Forfeiture Event has or may have occurred.

5.6. Golden Parachute Tax. If the Corporation's accounting firm determines that the Cash Severance Package, the COBRA Severance Package, the benefits under Section 5.3 and any other payments or benefits payable to a Participant upon a Change in Control will if paid in full trigger the Golden Parachute Tax, the Compensation Committee will reduce the Cash Severance Package, the COBRA Severance Package, the benefits under Section 5.3, other payments or benefits payable to the Participant, 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, the full benefits under Section 5.3 and other payments or benefits payable to the Participant, all of the foregoing will be paid in full.

SECTION 6.
AMENDMENT OR TERMINATION

The Plan may be amended or terminated in any respect by action of the Board or the Compensation Committee; provided that, (i) in connection with or in anticipation of a Change in Control (as determined by the Board of Directors or the Committee prior to a Change in Control), the Plan may not be amended or terminated in any manner that would materially adversely affect the outstanding rights of a Participant without his or her consent, and (ii) following a Change in Control, the Plan shall continue in full force and effect and shall not terminate, expire or be materially amended in a manner that would materially adversely affect the outstanding rights of Participants until after all Participants who become entitled to any payments hereunder shall have received such payments in full pursuant to Section 5, unless such Participant consents to such termination, expiration or amendment.

SECTION 7.
MISCELLANEOUS

7.1. Effective Date. The effective date of this Plan shall be October 19, 2017.

7.2. Disputes. Any legal action based on, arising out of, or relating to this Plan shall be brought exclusively 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

7

such action, and in the event the Corporation or the Bank is the prevailing party in any such action, the Corporation and/or the Bank should be entitled to recover from the Participant its or their reasonable attorneys’ fees and all other reasonable costs and expenses incurred by the Corporation and/or the Bank, as applicable, in connection with such action.

7.3. 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.

7.4. Governing Law. This Plan, including the exhibits hereto, shall be construed in accordance with and be governed by the laws of the State of Georgia without respect to any conflict of law rules which would require the application of the laws of another state or jurisdiction.

7.5. 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.

7.6. General; Unsecured Creditor Status; No Fiduciary. 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. Nothing in the Plan shall create any fiduciary relationship between the Corporation and its Affiliates, officers and agents and any Participant or other person.

7.7. Tax Withholding; No Interest. The Corporation shall have the right to make such tax withholding from the benefits paid under this Plan as required under Applicable Law. No interest shall be payable on amounts due under the Plan.

7.8. Not Subject to ERISA. The Plan does not require an ongoing administrative scheme and, therefore, is intended to be a payroll practice which is not subject to the Employee Retirement Income Security Act of 1974, as amended (“ERISA”). However, if it is determined that the Plan is subject to ERISA, (i) it shall be considered to be an unfunded plan maintained by the Corporation primarily for the purpose of providing deferred compensation for a select group of management or highly compensated employees (a “top-hat plan”), and (ii) it shall be administered in a manner which complies with the provisions of ERISA that are applicable to top-hat plans.

7.9. Compliance with Applicable Law: The Corporation may impose such restrictions on any benefits provided under the Plan as may be required under Applicable Law or as the Compensation Committee may deem advisable. Notwithstanding any other Plan provision to the contrary, the Corporation shall not be obligated to make any distribution of benefits or take any other action unless such distribution or action is in compliance with Applicable Law.

7.10. Compliance with Recoupment, Ownership and Other Policies or Agreements: Notwithstanding anything in the Plan to the contrary, and without limiting in any way the effect of Section 5.5 herein, the Compensation Committee may, at any time, in its discretion provide that benefits payable under the Plan shall be forfeited and/or recouped if the Participant, during employment or service or following termination of employment or service for any reason, engages in certain specified conduct, including but not limited to violation of policies of the Corporation or an Affiliate, breach of non-solicitation, noncompetition, confidentiality or other restrictive covenants, or other conduct by the Participant that is determined by the Compensation Committee to be detrimental to the business or reputation of the Corporation or any Affiliate. In addition, without limiting the effect of the foregoing, as a condition to participation in the Plan and receipt or retention of any benefit under the Plan, the Compensation Committee may, at any

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time, require that a Participant agree to abide by any equity retention policy, stock ownership guidelines, compensation recovery policy and/or other policies adopted by the Corporation or an Affiliate, each as in effect from time to time and to the extent applicable to the Participant. Further, each Participant shall be subject to such compensation recovery, recoupment, forfeiture or other similar provisions as may apply under Applicable Law.

7.11. Code Section 409A. Notwithstanding any other provision in the Plan to the contrary, if and to the extent that Code Section 409A is deemed to apply to the Plan or any award granted under the Plan, it is the general intention of the Corporation that the Plan shall, to the extent practicable, be construed in accordance therewith. Deferrals pursuant to an award otherwise exempt from Code Section 409A in a manner that would cause Code Section 409A to apply shall not be permitted unless such deferrals are permitted by the Compensation Committee and structured to be in compliance with or exempt from Code Section 409A. Without in any way limiting the effect of the foregoing, (i) in the event that Code Section 409A requires that any special terms, provision or conditions be included in the Plan, then such terms, provisions and conditions shall, to the extent practicable, be deemed to be made a part of the Plan, and (ii) terms used in the Plan shall be construed in accordance with Code Section 409A if and to the extent required. Further, in the event that the Plan shall be deemed not to comply with Code Section 409A, then neither the Corporation, the Bank, the Board, the Compensation Committee nor its or their designees or agents shall be liable to any participant or other persons for actions, decisions or determinations made in good faith. Notwithstanding any provision to the contrary in the Plan, if a Participant is deemed on the date of his or her “separation from service” (within the meaning of Treas. Reg. Section 1.409A-1(h)) to be a “specified employee” (within the meaning of Treas. Reg. Section 1.409A-1(i)), then with regard to any payment that is required to be delayed pursuant to Code Section 409A(a)(2)(B), the portion, if any, of such payment so required to be delayed shall not be made prior to the earlier of (i) the expiration of the six (6)-month period measured from the date of his or her “separation from service,” or (ii) the date of his or her death (the “Delay Period”). Upon the expiration of the Delay Period, all payments delayed pursuant to this Section shall be paid to the Participant (within 30 days of the expiration of the Delay Period) in a lump sum, and any remaining payments shall be made as provided in the Plan and in a manner in accordance with Code Section 409A. Whenever payments under the Plan are to be made in installments, each such installment shall be deemed to be a separate payment for purposes of Code Section 409A.

7.12. Legality, Severability, and Modification. The Corporation, the Bank and the Participant covenant and agree that the provisions contained herein (expressly including Exhibit B) are reasonable and are not known or believed to be in violation of any federal, state, or local law, rule or regulation. It is the reasonable intent and expectation of the Corporation, the Bank and the Participant that the covenants shall be enforced in accordance with their terms. However, in the event a court of competent jurisdiction finds any provision herein (or subpart thereof) (expressly including those contained in Exhibit B) to be void or unenforceable, the Corporation, the Bank and the Participant agree that the court shall modify the provision(s) (or subpart(s) thereof) to make the provision(s) (or subpart(s) thereof) and this Plan valid and enforceable to the fullest extent permitted by Applicable Law. Any illegal or unenforceable provision (or subpart thereof), or any modification by any court, shall not affect the remainder of this Plan, which shall continue at all times to be valid and enforceable in accordance with its terms.

7.13. Entire Agreement. The Plan and the exhibits thereto constitute the entire understanding between the parties regarding the subject matters addressed herein and supersede any prior oral or written agreements, promises, representations, warranties or inducements between or by the parties with regard thereto.

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7.14. Acknowledgement. A Participant’s participation in the Plan and receipt of any benefits by the Participant or anyone claiming through him is, unless the Compensation Committee determines otherwise, subject to the Participant’s timely execution and return of an “Acknowledgment of Plan Terms and Participation” substantially similar to the form of Acknowledgment attached hereto as Exhibit C.

ATLANTIC CAPITAL BANCSHARES, INC.

BY: /s/ Douglas L. Williams

Douglas L. Williams

TITLE: Chief Executive Officer

DATE: October 19, 2017

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EXHIBIT A

GENERAL RELEASE

I, ________________________, as an express condition of receiving the Cash Severance Package and other valuable benefits under the 2017 Change in Control Plan (Effective October 19, 2017) (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 but not limited to 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”).

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

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Commission; provided, however, that, except as provided in the following sentence or as otherwise required by applicable law, 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. Notwithstanding the foregoing, (i) nothing in the CIC Plan or this General Release prohibits me from reporting possible violations of federal 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, or making other disclosures that are protected under the whistleblower provisions of federal law and regulation, (ii) I do not need the prior authorization of the Bank to make any such reports or disclosures, and I am not required to notify the Bank that I have made such reports or disclosures; and (iii) the CIC Plan and this General Release do not limit my right to seek and obtain an award for providing information relating to a possible securities law violation to the Securities and Exchange Commission. Further, notwithstanding the foregoing, I 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 (i) is made (A) in confidence to a federal, state or local government official, either directly or indirectly, or to an attorney, and (B) solely for the purpose of reporting or investigating a suspected violation or law; or (ii) is made in a complaint 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 section 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.

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 Corporation or any of the other Released Parties, or in the event I seek to recover against the Corporation 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

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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.

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:    

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EXHIBIT B

“FORFEITURE EVENT”

For purposes of this Exhibit B the term “Bank” shall include both the Corporation and the Bank, and a “Forfeiture Event” shall be any one or more than one of the following:

Section 1    Confidential Information and Trade Secrets.

(a)During a Participant’s employment by the Bank, the Bank shall disclose, or has already disclosed, to a Participant for use in his or her employment, and a Participant will be provided access to and otherwise will make use of, acquire, create, or add to certain valuable, unique, proprietary, and secret information of the Bank (whether tangible or intangible and whether or not electronically kept or stored), including financial statements, drawings, designs, manuals, business plans, processes, procedures, formulas, inventions, pricing policies, customer and prospect lists and contacts, contracts, sources and identity of vendors and contractors, financial information of customers of the Bank, and other proprietary documents, materials, or information indigenous to the Bank, relating to its businesses and activities, or the manner in which the Bank does business, which is valuable to the Bank in conducting its business because the information is kept confidential and is not generally known to the Bank’s competitors or to the general public (“Confidential Information”); provided, however, Confidential Information shall not include information generally known or easily obtained from public sources or public records, unless a Participant causes the Confidential Information to become generally known or easily obtained from public sources or public records.

(b)To the extent that the Confidential Information rises to the level of a trade secret under applicable law, then a Participant shall, during the Participant’s employment and for so long as the Confidential Information remains a trade secret under applicable law (or for the maximum period of time otherwise allowed by applicable law) have a Forfeiture Event if he or she (i) fails to protect and maintain the confidentiality of such trade secrets or (ii) discloses, copies, or uses any such trade secrets without the Bank’s prior written consent, except as necessary in the Participant’s performance of the Participant’s duties while employed with the Bank.

(c)To the extent that the Confidential Information does not rise to the level of a trade secret under applicable law, a Participant shall have a Forfeiture Event during the Participant’s employment and for a period of one year following any voluntary or involuntary termination of employment (whether by the Bank or the Participant), (i) if the Participant fails to protect and maintain the confidentiality of the Confidential Information or (ii) discloses, copies, or uses any Confidential Information without the Bank’s prior written consent, except as necessary in the Participant’s performance of the Participant’s duties while employed with the Bank.

(d)Notwithstanding the foregoing, (i) nothing in the Plan prohibits a Participant from reporting possible violations of federal 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, or making other disclosures that are protected under the whistleblower provisions of federal law and regulation, (ii) a Participant does not need the prior authorization of the Bank to make any such reports or disclosures, and a Participant is not required to notify the Bank that he or she has made such reports or disclosures; and (iii) the Plan does not limit a Participant’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, a Participant 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 (i) is made (A) in confidence

to a federal, state or local government official, either directly or indirectly, or to an attorney, and (B) solely for the purpose of reporting or investigating a suspected violation or law; or (ii) is made in a complaint 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 section 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.

Section 2    Return of Property of the Bank. Upon any voluntary or involuntary termination of a Participant’s employment or at any other time upon request of the Bank, the Participant shall have a Forfeiture Event if he or she fails to immediately return to the Bank all property of the Bank (including, without limitation, all documents, electronic files, records, computer disks or other tangible or intangible things that may or may not relate to or otherwise comprise Confidential Information or trade secrets (as defined by applicable law) that the Participant created, used, possessed or maintained while working for the Bank from whatever source and whenever created, including all reproductions or excerpts thereof. This Section 2 does not apply to purely personal documents of the Participant, but it does apply to business calendars, Rolodexes, customer lists, contact sheets, computer programs, disks and their contents and like information that may contain some personal matters of the Participant.

Section 3    Non-Diversion of Business Opportunity. During a Participant’s employment with the Bank and consistent with a Participant’s duties and fiduciary obligations to the Bank, a Participant shall have a Forfeiture Event if he or she (a) fails to disclose to the Bank any business opportunity that comes to the Participant’s attention during the Participant’s employment with the Bank and that relates to the business of the Bank or otherwise arises as a result of the Participant’s employment with the Bank and/or (b) takes advantage of or otherwise diverts any such opportunity for the Participant’s own benefit or that of any other person or entity without prior written consent of the Bank.

Section 4    Non-Solicitation of Customers. A Participant shall have a Forfeiture Event if, during the Participant’s employment and for a period of twelve (12) months following any employment termination, the Participant, directly or indirectly, contacts, solicits, diverts, appropriates, or calls upon, with the intent of doing business with, the customers or clients of the Bank with whom the Participant has had material contact during the last year of the Participant’s employment with the Bank, including prospects of the Bank with whom the Participant had such contact during such last year of the Participant’s employment, if the purpose of such activity is either (a) to solicit such customers or clients or prospective customers or clients for a Competitive Business (as defined in Section 5 of this Exhibit B), including, without limitation, any Competitive Business started by the Participant or (b) to otherwise encourage any such customer or client to discontinue, reduce, or adversely alter the amount of its business with the Bank.

Section 5    Competitive Business. A “Competitive Business” for purposes of this Exhibit B is an enterprise that is in the business of offering banking products and/or services, which services and/or products are similar or substantially identical to those offered by the Bank during the Participant’s employment with the Bank.

Section 6    Non-Piracy of Employees. A Participant shall have a Forfeiture Event if, during the Participant’s employment and for a period of twelve (12) months following any employment termination, the Participant, directly or indirectly: (a) solicits, recruits, or hires (or attempts to solicit, recruit, or hire) or otherwise assists anyone in soliciting, recruiting, or hiring, any employee or independent contractor (which shall not include non-exclusive outside vendors) of the Bank who performed work for the Bank within the United States of America within the last six (6) months of the Participant’s employment with the Bank or

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who was otherwise engaged by or employed with the Bank at the time of such termination of employment of the Participant or (b) otherwise encourages, solicits, or supports any such employees or independent contractors to leave their employment or engagement with the Bank, in either case until such employee or contractor has been terminated or separated from the Bank for at least twelve (12) months.

Section 7     Non-Compete. A Participant shall have a Forfeiture Event if, during the Participant’s employment and for a period of twelve (12) months following any employment termination, the Participant, directly or indirectly, competes with the Bank, as an officer, director, member, principal, partner, shareholder (other than a shareholder in a company that is publicly traded and so long as such ownership is less than five percent), owner, manager, supervisor, administrator, employee, consultant, or independent contractor, by working in the Territory (as defined in this Section 7) for or as a Competitive Business in the Territory, in a capacity in which the Participant provides services that are identical or substantially similar to the services the Participant provided on behalf of the Bank. The “Territory” shall be defined as (i) the following counties in the State of Georgia: Barrow; Bartow; Butts; Carroll; Cherokee; Clayton; Cobb; Coweta; Dawson; DeKalb; Douglas; Fayette; Forsyth; Fulton; Gwinnett; Haralson; Heard; Henry; Jasper; Lamar; Meriwether; Newton; Paulding; Pickens; Pike; Rockdale; Spalding; and Walton, as well as (ii) the area within the city limits of Chattanooga, Tennessee, Knoxville, Tennessee, and Charlotte, North Carolina, as well as (iii) each county within which any part of the city limits of Chattanooga, Tennessee, Knoxville, Tennessee, and Charlotte, North Carolina are located, as well as (iv) the counties (including those in adjacent states, if any) that are immediately contiguous to the counties referenced in subpart (iii), as well as (v) any counties of any state in which the Bank, at the time of termination of Participant’s employment, is operating or providing services; provided, however, that the Territory described herein is a good faith estimate of the geographic area that is now applicable or that may be applicable at the termination of Participant’s employment as the area in which the Bank does or will do business during the term of Participant’s employment, and the Bank and Participant agree that this non-compete covenant shall ultimately be construed to cover only so much of such estimate as relates to the geographic areas in which the Bank does business within the two-year period preceding termination of Participant’s employment.

Section 8    Post-Termination Cause Determination. A Participant shall also have a Forfeiture Event if, following the Participant’s Separation from Service, the Compensation Committee determines that the Participant, while employed by or in service to the Bank, engaged in conduct which would constitute a “Cause” termination under the terms of the Plan without respect to any notice and cure requirements.

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EXHIBIT C

ACKNOWLEDGMENT OF PLAN TERMS AND PARTICIPATION

I, ______________________, acknowledge that I understand that I have been selected by the Compensation Committee of the Board of Directors of Atlantic Capital Bancshares, Inc. (the “Corporation”) to participate in the Atlantic Capital Bancshares, Inc. 2017 Change in Control Plan (Effective October 19, 2017), including any exhibits to the Plan (specifically including but not limited to Exhibit B/Forfeiture Events) (collectively, the “Plan”), and I acknowledge that I have received a copy of the Plan. I further acknowledge and agree to abide by the terms and conditions of the Plan and understand that my receipt of benefits, if any, under the Plan is subject to my compliance with the terms and conditions of the Plan, including but not limited to those contained in Exhibit B.

Signature: ____________________

Printed Name: _________________

Date: _________________________

EX-10.3

Exhibit 10.3

Atlantic Capital Bank Severance Plan

and Summary Plan Description

EFFECTIVE DATE:

October 19, 2017

OVERVIEW OF THE PLAN

This section provides a brief overview of the Atlantic Capital Bank Severance Plan (the “Plan”). These pages are for general reference only. Each employee of Atlantic Capital Bank, N.A. (the “Company”) should read the entire Plan for a full explanation of the terms of the Plan. No employee should rely on the terms of this overview to determine employee’s rights under the Plan.

Eligibility

Regular, full-time and part-time employees of the Company generally are eligible to participate in this Plan if they do not have an employment, severance, termination, separation, change in control or similar agreement with the Company and are not participants in any other severance, termination, change in control or similar plan, policy or arrangement of the Company or Atlantic Capital Bancshares.

Entitlement to Benefits

An eligible employee generally will be entitled to receive severance benefits under this Plan if:

• One of the following termination events occur:

• their employment is terminated involuntarily and without Cause by the Company due to a reduction in force/downsizing or job elimination;

• they terminate employment due to their position being moved by the Company without their consent to a location more than 50 miles from the location of their current position; or

• they terminate employment due to the transfer by the Company without their consent to a new position that is not a comparable position (i.e., similar in skill level and salary) for reasons other than Cause, provided that, a position will not fail to be a comparable position unless it would result in a material negative change in the employment relationship;

• the employee is not otherwise ineligible to receive severance benefits under the Plan;

• the employee continues in active employment and good standing with the Company through a date determined by the Company; and

• the employee signs, delivers to the Company, and does not revoke a Release Agreement as directed by the Company.

Severance Benefits

The severance benefits generally payable under the Plan are as follows:

• Section 16 Officers and Executive Vice Presidents: 52 weeks of base pay (unless they have been employed for fewer than 6 months, in which case they will receive 26 weeks of base pay).

• Senior Vice Presidents: 26 weeks of base pay (unless they have been employed for fewer than 12 months, in which case they will receive 13 weeks of base pay).

• All Other Employees: 2 weeks of base pay per year of service, with a minimum of 8 weeks of base pay and a maximum of 26 weeks of base pay (unless they have been employed for fewer than 12 months (but at least 6 months), in which case they will receive 4 weeks of base pay; if they have been employed for fewer than 6 months, they will receive 2 weeks of base pay).

SECTION IPURPOSE AND ADOPTION OF PLAN

1.1 Adoption of the Plan. The Company has adopted the Plan to be effective beginning on October 19, 2017. The Plan is an unfunded welfare benefit plan for purposes of the Employee Retirement Income Security Act of 1974, as amended (“ERISA”), and a severance pay plan within the meaning of United States Department of Labor Regulations. This document serves as both the Plan document and the Summary Plan Description for the Plan. The Plan supersedes any prior severance plans, programs or policies sponsored by the Company covering employees eligible under this Plan, both formal and informal.

1.2 Purpose. The Plan is designed to provide severance benefits to eligible Employees whose employment terminates under the circumstances set forth herein and who otherwise satisfy the terms for receiving severance benefits under the Plan.

SECTION IIDEFINITIONS

The following words and phrases used in the Plan with the initial letter capitalized shall have the meanings set forth below

2.1 “Atlantic Capital Bancshares” means Atlantic Capital Bancshares, Inc. and any successor in interest to Atlantic Capital Bancshares, Inc. resulting from merger, consolidation or transfer of all or substantially all of its assets. Atlantic Capital Bancshares holds all of the issued and outstanding capital stock of the Company.

2.2 “Base Pay” means the rate of base earnings (whether salary or hourly wages and including commissions for a Participant entitled to receive commissions) of a Participant immediately preceding his or her Termination Date:

(a) exclusive of overtime pay, shift differential pay, bonuses, incentive compensation, equity awards, payments for accrued vacation pay or other special payments or ancillary earnings; and

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(b) before any deductions, including, but not limited to, any federal, state or other taxes, and salary reduction amounts contributed to benefit plans or programs.

If Participant is a full-time Employee entitled to receive commissions, the Participant’s Base Pay shall be the Participant’s average weekly base earnings and commissions for the preceding twenty-six (26) weeks (exclusive of the earnings and before the deductions described above). If Participant is a part-time Employee, the Participant’s Base Pay shall be the Participant’s average hourly base earnings for the preceding twenty-six (26) weeks (exclusive of the earnings and before the deductions described above).

2.3 “Cause” shall exist where the Participant’s employment with the Company is terminated due to:

(a) the Participant’s misconduct or negligence involving the Company or Atlantic Capital Bancshares;

(b) the Participant’s repeated failure to comply with the lawful directives of any supervisory personnel;

(c) any criminal act or act of dishonesty or willful misconduct by the Participant or any act of fraud, dishonesty or misappropriation by the Participant involving the Company or Atlantic Capital Bancshares;

(d) the Participant’s indictment, conviction or plea of guilty or nolo contendere to a felony or a crime involving dishonesty;

(e) the material breach by the Participant of the terms of any confidentiality, trade secrets, non-competition, non-solicitation, employment or similar agreement the Participant has with the Company or Atlantic Capital Bancshares;

(f) acts of malfeasance or negligence by the Participant in a matter involving the Company or Atlantic Capital Bancshares;

(g) the material failure by the Participant to perform the duties and responsibilities of Participant’s position;

(h) the Participant’s unsatisfactory performance as evidenced by a performance review and/or documented corrective action; or

(i) activities of the Participant that are damaging to the property, operations, business or reputation of the Company or Atlantic Capital Bancshares.

Without in any way limiting the effect of the foregoing, for purposes of the Plan, a Participant’s employment shall also be deemed to have terminated for Cause if, after the Participant’s employment has terminated, facts and circumstances are discovered that would have justified, in the opinion of the Committee, a termination for Cause.

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2.4 “Code” means the Internal Revenue Code of 1986, as amended.

2.5 “Committee” means the Joint Compensation Committee of the Boards of Directors of Atlantic Capital Bancshares and the Company and/or its designee(s) in accordance with applicable laws, rules and regulations.

2.6 “Company” means Atlantic Capital Bank, N.A. and its successors in interest resulting from merger, consolidation, or transfer of all or substantially all of its assets. In the Committee’s discretion, the “Company” may also include an affiliate of the Company.

2.7 “Comparable Position” means a position (i) which requires skills and knowledge similar to those required in the Participant’s current position, and (ii) at a salary level similar to the Participant’s current position; provided that, a position will not fail to be a “Comparable Position” unless it would result in a material negative change in the employment relationship for purposes of Section 409A.

2.8 “Disability” means, for any Participant, any injury, illness or sickness that qualifies as a long-term disability within the meaning of the Company’s long-term disability plan or program and on account of which such Participant is entitled to receive long-term disability benefits under such plan or program.

2.9 “Effective Date” means October 19, 2017.

2.10 “Eligible Employee” means an Employee who (a) is not a party to an employment, severance, termination, separation, change in control or similar agreement with the Company or Atlantic Capital Bancshares, and (b) is not a participant in any other severance, termination, change in control or similar plan, policy or arrangement of the Company or Atlantic Capital Bancshares. The Committee in its sole discretion shall determine whether an Employee is considered an Eligible Employee.

2.11 “Employee” means a full-time or part-time employee of the Company who is denoted as such on the books and records of the Company. Examples of individuals who are not “Employees” for this purpose and who are not eligible to participate in the Plan include: (1) consultants; (2) leased employees or workers; (3) individuals providing services to the Company pursuant to a contract with a third party; (4) temporary employees or workers; (5) independent contractors; (6) employees of independent contractors; (7) interns; and (8) co-op employees.

2.12 “ERISA” means the Employee Retirement Income Security Act of 1974, as amended.

2.13 “Human Resources Department” means the Company’s Human Resources Department.

2.14 “Participant” means any Eligible Employee who is eligible to receive Severance Benefits under the Plan if his or her employment with the Company terminates under the circumstances set forth herein and he or she otherwise satisfy the terms for receiving Severance Benefits under the Plan.

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2.15 “Plan” means this Atlantic Capital Bank Severance Plan, as set forth in this document and as it may be amended from time to time.

2.16 “Plan Year” means a twelve (12) month period commencing on each January 1 and ending on each following December 31, except for the initial Plan Year which shall commence on the Effective Date and shall end on December 31, 2017.

2.17 “Qualifying Termination” meansthe termination of the Participant’s employment (i) involuntarily and without Cause by the Company due to a reduction in force/downsizing or job elimination; (ii) by the Participant due to the Participant’s position being moved by the Company without his consent to a location more than 50 miles from the location of the Participant’s current position; or (iii) by the Participant due to the transfer by the Company without the Participant’s consent to a new position that is not a Comparable Position for reasons other than Cause. A termination by the Participant will not be treated as a Qualifying Termination unless the Participant notifies the Company of his decision to reject the new position or the transfer to a new location within the 30-day period immediately following the date on which the Participant is notified of the Company’s decision.

2.18 “Release Agreement” means the release and waiver agreement to be executed by a Participant in order to be eligible for and receive Severance Benefits under the Plan.

2.19 “Section 409A” means Section 409A of the Code.

2.20 “Section 16 Officer” means an officer of the Company who is subject to Section 16(b) of the Securities Exchange Act of 1934, as amended.

2.21 “Separation from Service” means the termination of a Participant’s employment with the Company and Atlantic Capital Bancshares due to death, retirement or other reasons. The Participant’s employment relationship is treated as continuing while the Participant is on military leave, sick leave, or other bona fide leave of absence (if the period of such leave does not exceed six (6) months, or if longer, so long as the Participant’s right to reemployment with the Company or Atlantic Capital Bancshares is provided either by statute or contract). If the Participant’s period of leave exceeds six (6) months and the Participant’s right to reemployment is not provided either by statute or by contract, the employment relationship is deemed to terminate on the first day immediately following the expiration of such six-month period. Whether a Separation from Service has occurred will be determined based on all of the facts and circumstances and in accordance with regulations under Section 409A. An Employee’s employment with the Company will be considered to be terminated for purposes of the Plan only if the Employee incurs a Separation from Service within the meaning of Section 409A.

2.22 “Severance Benefits” means the severance pay that a Participant will be entitled to receive pursuant to Section 4.1(a).

2.23 “Termination Date” means the effective date of the termination of the Participant’s employment with the Company and Atlantic Capital Bancshares.

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2.24 “Years of Service” means the cumulative consecutive years of active and continuous employment with the Company and/or Atlantic Capital Bancshares or a predecessor of the Company and/or Atlantic Capital Bancshares (including approved leaves of absence of six (6) months or less or legally protected leaves of absence), beginning on the date of the Participant’s most recent date of hire with the Company and counting each anniversary thereof. A partial year of employment shall not be treated as a Year of Service. Notwithstanding the foregoing, Participants who have served less than one year shall be entitled to Severance Benefits to the extent provided in Section 4.1(a) herein.

SECTION IIIENTITLEMENT TO SEVERANCE BENEFITS

3.1 Entitlement to Severance Benefits. A Participant will become entitled to receive Severance Benefits under the Plan only if:

(a) the Participant’s employment is terminated due to a Qualifying Termination;

(b) the Participant is not and does not become ineligible to receive Severance Benefits under Section 3.2, below;

(c) the Participant continues in active employment with the Company through a date determined by the Company in accordance with Section 3.3, below; and

(d) the Participant signs, delivers and does not revoke a Release Agreement in accordance with Section 3.4 below.

3.2 No Entitlement to Severance Benefits. Notwithstanding any other provision of the Plan, a Participant shall not become entitled to receive Severance Benefits under this Plan if:

(a) the Participant ceases to be an Eligible Employee other than due to a reduction in force/downsizing or job elimination;

(b) the Participant’s employment is involuntarily terminated by the Company with or without Cause and other than due to a reduction in force/downsizing or job elimination;

(c) the Participant retires, resigns or quits for any reason whatsoever other than a reason described in Section 2.17(ii) or (iii);

(d) the Participant terminates employment because of the Employee’s Disability or death;

(e) the Participant is offered another position with the Company or Atlantic Capital Bancshares, with the same or higher level salary or wages, whether or not the Employee accepts such offer;

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(f) in case of a sale of a business operation, or part of a business operation, in which the Participant is employed, the Participant is offered employment with the purchaser or an affiliate of the purchaser, with the same or higher level salary or wages, whether or not the Participant accepts such offer;

(g) the Participant is a party to any employment, severance, change in control, termination, separation or similar agreement between the Participant and the Company or Atlantic Capital Bancshares;

(h) the Participant is a participant in any other severance, termination, change in control or similar plan of the Company or Atlantic Capital Bancshares, whether or not the Participant is entitled to receive any benefits thereunder;

(i) the Participant’s employment terminates due to the Company outsourcing that Participant’s job or function if the Participant is offered employment with the vendor that will continue to provide the job or function that the Participant previously provided, with the same or higher level salary or wages, whether or not the Participant accepts such offer;

(j) the termination of the Participant’s employment entitles the Participant to severance benefits under any agreement between the Company and the Participant or any plan, program or policy of the Company; or

(k) the Plan is terminated pursuant to Section 7.1 of the Plan prior to the date the Participant is notified of his or her termination.

3.3 Continuation in Active Employment. A Participant shall not become entitled to receive Severance Benefits under the Plan unless he or she remains actively employed by the Company and continues to satisfactorily perform his or her duties until such date as the Company shall direct.

3.4 Release Agreement. A Participant shall not become entitled to receive Severance Benefits under the Plan unless he or she executes and delivers to the Company a Release Agreement, in the form described below, and does not revoke such Release, within the time period described below:

(a) The Release Agreement shall be drafted by the Company and shall contain such terms and conditions as are satisfactory to the Company, including, but not limited to, (i) the release of any and all claims that the Participant may then have, as of the signing of such release, against the Company, Atlantic Capital Bancshares and their affiliates, and any of their employees, officers, directors, agents and the like, (ii) an agreement to keep the confidential information and trade secrets of the Company, Atlantic Capital Bancshares and their affiliates confidential, and (iii) an agreement not to solicit the customers or employees of the Company, Atlantic Capital Bancshares and their affiliates for a period of no less than twelve (12) months following the Termination Date.

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(b) A Participant shall have at least twenty-one (21) days (forty-five (45) days, if it is a group termination or exit incentive) following the date the Release Agreement is given to the Participant to sign and return the Release Agreement to the Human Resources Department.

(c) Within seven (7) days after the Participant signs the Release Agreement, the Participant shall be entitled to revoke the Release Agreement by notifying the Human Resources Department of the revocation in writing. To be effective, such notice of revocation must be received by the Human Resources Department by the close of business on the seventh (7th) day following the date the Participant returned his or her signed Release Agreement. The Release Agreement will not become effective until after the seven (7)-day revocation period expires. The revocation of a previously signed and delivered Release Agreement pursuant to the above shall be deemed to constitute an irrevocable election by the Participant to have declined benefits under the Plan.

(d) Notwithstanding the foregoing, the Participant must sign and return the Release Agreement to the Human Resources Department and the seven-day revocation period must expire without the Participant having elected to revoke the Release Agreement within the sixty (60) days immediately following the Termination Date.

(e) Notwithstanding the foregoing, (i) nothing in the Release Agreement or other agreement shall prohibit the Participant from reporting possible violations of law or regulation to any federal, state or local 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 proceeding that may be conducted by Government Agencies, including providing documents or other information; (ii) the Participant will not need the prior authorization of the Company or Atlantic Capital Bancshares to take any action described in (i), and the Participant will not be required to notify the Company or Atlantic Capital Bancshares that he has taken any action described in (i); and (iii) the Release Agreement shall not limit the Participant’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 Participant will not be held criminally or civilly liable under any Governmental Agency’s trade secret law for the disclosure of a trade secret that (x) is made (i) in confidence to a federal, state or local government 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 complaint 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 attorney and use the trade secret information in the court proceeding, so long as any document containing the trade

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secret is filed under seal and the individual does not disclose the trade secret except pursuant to court order.

The Committee, in its sole discretion, may waive any requirement that the Participant execute a Release Agreement to become entitled to receive Severance Benefits under the Plan.

SECTION IVSEVERANCE BENEFITS

4.1 Severance Benefits.

(a) Amount of Severance Benefits. A Participant who satisfies the requirements of Section III of the Plan shall become entitled to receive Severance Benefits in an amount equal to the Participant’s Base Pay for the following number of weeks, based on the Participant’s job title and Years of Service as of the Termination Date, subject to Section 5.1 below:

Participant’s Job Title	Severance Benefits
Section 16 Officer or Executive Vice President	If employed for less than 6 months: 26 weeks of Base Pay If employed for 6 months or more: 52 weeks of Base Pay
Senior Vice President	If employed for less than 12 months: 13 weeks of Base Pay If employed for 12 months or more: 26 weeks of Base Pay
All other positions	If employed for less than 6 months: 2 weeks of Base Pay If employed for at least 6 months but less than 12 months: 4 weeks of Base Pay If employed for 12 months or more: 2 weeks of Base Pay per Year of Service, with a minimum of 8 weeks of Base Pay and a maximum of 26 weeks of Base Pay

(b) Payment of Severance Benefits. The Severance Benefits shall be paid to a Participant in such amounts and in periodic installments as were being paid to the Participant in Base Pay prior to the Termination Date (but no less frequently than monthly) beginning immediately after the Termination Date, except that any payments to be made within the sixty (60) days after the Termination Date shall be accumulated and paid (subject to Section V below) in a lump sum, on the first payroll date occurring after the Release Agreement has been executed and the applicable revocation period has expired without the Participant having revoked the Release.

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Notwithstanding anything herein to the contrary but subject to Section 5.2, the Company may elect, in its sole discretion, to pay some or all of the Severance Benefits in a single lump sum, in which case, that portion of the Severance Benefits will be paid in a single lump sum on the first payroll date occurring after the Release Agreement has been executed and the applicable revocation period has expired without the Participant having revoked the Release. Notwithstanding the foregoing, if the sixty (60)-day period after the Termination Date for the Release Agreement to become effective and irrevocable spans more than one calendar year, no payments shall be made until the first payroll period occurring within the subsequent calendar year. If the Participant dies before receiving all of his Severance Benefits payable pursuant to this Section 4.1, any remaining payments of his Severance Benefits will revert to the Company as of the date of the Participant's death and no further payments of Severance Benefits shall be made from the Plan on behalf of the Participant.

4.2 No Duplication of Benefits. Notwithstanding anything herein to the contrary, a Participant’s right to receive any Severance Benefits under the Plan is specifically conditioned upon the Participant either waiving or being ineligible for any and all benefits under any other change in control or severance benefit plans otherwise available to the Participant or any other severance, retention or change in control plan, program or agreement sponsored by the Company.

4.3 Effect of Rehire. Notwithstanding anything herein to the contrary, the Company may require a Participant to repay some or all of the Severance Benefits as a condition of reemployment. Additionally, all payments hereunder shall cease if the Participant becomes reemployed by the Company.

4.4 Effect of Violation of Release Agreement. Notwithstanding anything herein to the contrary, if the Committee determines that a Participant has breached any of the terms or conditions of the Release Agreement he or she signed as a condition for receiving Severance Benefits, the Committee may terminate the payment of those Severance Benefits and/or may require the Participant to repay some or all of the gross amount of any of those Severance Benefits.

SECTION VSECTION 409A

5.1 Exemption from Section 409A. It is intended that any payment or payments which is or are to be provided to a Participant in connection with this Plan shall be exempt from the applicable requirements of Section 409A, because (i) they will be paid in all events no later than the 15th day of the third month following the end of the taxable year of the Participant, or the fiscal year of the Company, in which the Participant’s right to the Severance Benefits are no longer subject to a substantial risk of forfeiture and/or (ii) satisfy the exemption for exempt separation pay under Section 409A. Accordingly, notwithstanding any other provision of the Plan, in no event will the aggregate of the weeks of Base Pay to be paid to any Participant under the Plan after the 15th day of the third month following the end of the taxable year of the Participant, or the fiscal year of the Company, in which the Participant’s right to the Severance Benefits are no longer subject to a substantial risk of forfeiture (i)

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exceed two times the lesser of (a) the Participant’s annual rate of compensation for the preceding calendar year (adjusted for any increase during that year that was expected to continue indefinitely if the Participant had not terminated employment) and (b) the Code Section 401(a)(17) qualified plan compensation limit for the calendar year in which the Participant terminates employment (i.e., $270,000 for 2017), or (ii) be paid later than December 31 of the second calendar year following the year in which the Participant terminates employment. The Company in its sole discretion will determine what adjustments will be made to comply with the foregoing limitations. Consequently, this Plan shall be operated in compliance with any available exception from Section 409A and each provision of this Plan shall be interpreted, to the extent possible, to qualify for an exception thereto.

5.2 No Acceleration or Deferral. Notwithstanding Section 5.1, if the Committee determines that all or a portion of the payments provided under the Plan constitute non-qualified deferred compensation under Section 409A then neither the Participant nor the Company shall take any action to accelerate or delay the payment of any monies in any manner which would not be in compliance with, or exempt from, Section 409A.

5.3 Specified Employee Rule. Notwithstanding Section 5.1, if the Committee determines that all or a portion of the payments provided under the Plan constitute non-qualified deferred compensation under Section 409A and if a Participant is a “specified employee” for purposes of Section 409A(a)(2)(B)(i) of the Code (as defined below), any payment in connection with the Participant’s Separation from Service shall not be made until six (6) months after the Participant’s Separation from Service or, if earlier, the Participant’s death (the “409A Deferral Period”) as and to the extent required under Section 409A. In the event such payments are otherwise due to be made in installments or periodically during the 409A Deferral Period, the payments which would otherwise have been made in the 409A Deferral Period shall be accumulated and paid in a lump sum as soon as, and within thirty (30) days after, the 409A Deferral Period ends, and the balance of the payments shall be made as otherwise scheduled. A “specified employee” for purposes of Section 409A(a)(2)(B)(i) of the Code shall be determined on the basis of the applicable twelve (12)-month period ending on the specified employee identification date designated by the Company consistently for purposes of this Plan and similar agreements or, if no such designation is made, based on the default rules and regulations under Section 409A(a)(2)(B)(i) of the Code.

5.4 Separate Payments. For purposes of this Plan, all rights to payments hereunder shall be treated as rights to receive a series of separate payments to the fullest extent allowed by Section 409A.

5.5 Separation from Service. For purposes of determining time of (but not entitlement to) the payment or provision of any non-qualified deferred compensation under this Plan subject to Section 409A in connection with the termination of the Participant’s employment, termination of employment will be construed to mean a “separation from service” within the meaning of Section 409A where it is reasonably anticipated that the Participant will not perform any further services after that date or that the level of bona fide services that the Participant will perform after that date (whether as an employee or independent contractor)

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will permanently decrease to no more than twenty percent (20%) of the average level of bona fide services the Participant performed over the immediately preceding thirty-six (36) month period.

5.6 No Company Liability. Notwithstanding any of the provisions of this Plan, neither the Company, Atlantic Capital Bancshares, or its or their officers, directors, employees or agents shall be liable to the Participant if any payment which is to be provided pursuant to this Plan and which is considered non-qualified deferred compensation subject to Section 409A otherwise fails to comply with, or be exempt from, the requirements of Section 409A.

SECTION VIPLAN ADMINISTRATION

6.1 Plan Administration. Except as otherwise provided herein, the Committee shall administer the Plan. The Committee shall be the “Named Fiduciary” for purposes of ERISA and shall have the full and complete duty and discretionary authority to control, interpret and construe the Plan and manage the operations thereof. Any such interpretation and construction of any provisions of the Plan by the Committee shall be final. The Committee shall, in addition to the foregoing, exercise such other powers and perform such other duties as it may deem advisable in the administration of the Plan. The Committee may delegate some (or all) of its authority hereunder to the Human Resources Department. The Committee also may engage agents and obtain other assistance from the Company, including Company counsel. The Committee shall not be responsible for any action taken or not taken on the advice of legal counsel. The Committee is given specific authority to allocate and revoke responsibilities among its members or designees. When the Committee has allocated authority pursuant to the foregoing, the Committee shall not be liable for the acts or omissions of the party to whom such responsibility has been allocated, except to the extent provided by law.

6.2 Claims Procedures.

(a) Initial Claim. A claim for benefits under the Plan must be submitted, in writing, to the Human Resources Department and must be signed by the Participant or, in the case of a death benefit, by Participant’s Beneficiary or legal representative. Any Participant or Beneficiary who disputes the amount of his or her entitlement to Plan benefits must file a claim in writing within one hundred eighty (180) days of the event that the Participant or Beneficiary is asserting constitutes an entitlement to such Plan benefits or, if later, within ninety (90) days of the date the payment is due. Failure by the Participant or Beneficiary to submit such claim within such time periods shall bar the Participant or Beneficiary from any claim for benefits under the Plan as the result of the occurrence of such event or the failure to make such payment. In no event shall the Participant or other claimant be entitled to challenge a decision of the Committee with respect to a claim unless and until the claims procedures herein have been complied with and exhausted.

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(b) Notice of Decision. Written notice of the disposition of the claim shall be furnished to the claimant within a reasonable period of time, but not later than ninety (90) days after receipt of the claim by the Human Resources Department, unless the Human Resources Department determines that special circumstances require an extension of time for processing the claim. If the Human Resources Department determines that an extension is required, written notice (including an explanation of the special circumstances requiring an extension and the date by which the Human Resources Department expects to render the benefits determination) shall be furnished to the claimant prior to the termination of the original ninety (90) day period. In no event shall such extension exceed a period of ninety (90) days from the end of the initial ninety (90) day period. If the claim is denied, the notice required pursuant to this Section shall set forth the following:

(1) The specific reason or reasons for the adverse determination;

(2) Special reference to the specific Plan provisions upon which the determination is based;

(3) A description of any additional material or information necessary for the claimant to perfect the claim and an explanation of why such material or information is necessary; and

(4) An explanation of the Plan’s appeal procedure and the time limits applicable to an appeal, including a statement of the claimant’s right to bring a civil action under Section 502(a) of ERISA.

(c) Appeal Procedures. Every claimant shall have the right to appeal an adverse benefits determination to the Committee (including, but not limited to, whether the Participant’s termination of employment was for Cause). Such an appeal may be accomplished by a written notice of appeal filed with the Committee within sixty (60) days after receipt by the claimant of written notification of the adverse benefits determination. Claimants shall have the opportunity to submit written comments, documents, records, and other information relating to the claim for benefits. Claimants will be provided, upon request and free of charge, reasonable access to, and copies of, all documents, records and other information relevant to the claimant’s claim for benefits, such relevance to be determined in accordance with Section 6.2(e), below. The appeal shall take into account all comments, documents, records, and other information submitted by claimant relating to the claim, without regard to whether such information was submitted or considered in the initial benefit determination.

(d) Notice of Decision. Notice of a decision on appeal shall be furnished to the claimant within a reasonable period of time, but not later than sixty (60) days after receipt of the appeal by the Committee unless the Committee determines that special circumstances (such as the need to hold a hearing if the Committee determines that a hearing is required) require an extension of time for processing the claim. If the

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Committee determines that an extension is required, written notice (including an explanation of the special circumstances requiring an extension and the date by which the Committee expects to render the benefits determination) shall be furnished to the claimant prior to the termination of the original sixty (60) day period. In no event shall such extension exceed a period of sixty (60) days from the end of the initial sixty (60) day period. The notice required by the first sentence of this Section shall be in writing, shall be set forth in a manner calculated to be understood by the claimant and, in the case of an adverse benefit determination, shall set forth the following:

(1) The specific reason or reasons for the adverse determination;

(2) Reference to the specific Plan provisions upon which the determination is based;

(3) A statement that the claimant is entitled to receive, upon request and free of charge, reasonable access to, and copies of, all documents, records, and other information relevant to the claimant’s claim for benefits, such relevance to be determined in accordance with Section 6.2(e), below; and

(4) An explanation of the claimant’s right to bring a civil action under Section 502(a) of ERISA following an adverse benefit determination on appeal.

(e) Definition of “Relevant”. For purposes of this Section, a document, or other information shall be considered “relevant” to the claimant’s claim if such document, record or other information: (1) was relied upon in making the benefit determination; (2) was submitted, considered or generated in the course of making the benefit determination, without regard to whether such document, record or other information was relied upon in making the benefit determination; or (3) demonstrates compliance with the administrative processes and safeguards required pursuant to this Section on making the benefit determination.

(f) Decisions Final; Procedures Mandatory. To the extent permitted by law, a decision on review or appeal shall be binding and conclusive upon all persons whomsoever. To the extent permitted by law, completion of the claims procedures described in this Section shall be a mandatory precondition that must be complied with prior to commencement of a legal or equitable action in connection with the Plan by a person claiming rights under the Plan. The Committee may, in its sole discretion, waive these procedures as a mandatory precondition to such an action.

(g) Time For Filing Legal Or Equitable Action. Any legal or equitable action filed in connection with the Plan by a person claiming rights under the Plan must be commenced not later than the earlier of: (1) the shortest applicable statute of limitations provided by law; or (2) one (1) year of the date the written copy of the Human Resources Department’s or Committee’s decision on review is delivered to the claimant in accordance with Section 6.2(b) or (d).

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SECTION VIIAMENDMENT AND TERMINATION

7.1 General. The Plan may be amended, in whole or in part, or terminated at any time, by the Company’s Board of Directors or the Compensation Committee of the Board of Directors, subject to the following exceptions:

(a) No amendment or termination of the Plan shall impair or abridge the obligations of the Company that have become vested and payable as the result of the previous termination of a Participant’s employment.

(b) No amendment or termination of the Plan shall affect the rights of a Participant who was notified of his or her termination of employment before the effective date of such amendment.

(c) No amendment may be made if it will result in a violation of Section 409A and any such amendment shall at no time have any legal validity.

7.2 Amendments to Comply with the Law. Notwithstanding the foregoing, the Plan may be amended at will at any time and from time to time unilaterally by the Board to reflect changes necessary due to revisions to, or interpretations of: (1) ERISA; (2) the Code; or (3) any other provision of applicable state or federal law.

SECTION VIIIMISCELLANEOUS

8.1 Withholding. Any payments or benefits provided for hereunder shall be paid or delivered subject to any applicable withholding required under federal, state or local law.

8.2 Binding Agreement / Successors. Subject to the right of the Company to amend or terminate the Plan, and the Committee’s right to interpret the Plan, the Plan shall be for the benefit of and be enforceable by, a Participant’s personal or legal representatives, executors, administrators, successors, heirs, distributees, devisees and legatees.

8.3 No Right of Assignment. Neither a Participant nor any person taking on behalf of a Participant may anticipate, assign or alienate (either by law or equity) any benefit provided under the Plan and the Company shall not recognize any such anticipation, assignment or alienation. Furthermore, to the extent permitted by law, a benefit under the Plan is not subject to attachment, garnishment, levy, execution or other legal or equitable process.

8.4 No Employment or Service Contract. Notwithstanding anything to the contrary contained in the Plan, by the execution of the Plan, the Company does not intend to change the employment-at-will relationship with any of its employees. Instead, the Company retains its absolute right to terminate the employment or service of any Participant at any time for any reason.

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8.5 Mitigation of Benefits. A Participant shall not be required to mitigate the amount of payment provided for in the Plan by seeking other employment or otherwise, and except as set forth in the Plan, the amount of any payment or benefit provided for shall not be reduced by any compensation earned by the Participant as the result of employment by another employer, or by retirement benefits received.

8.6 Notices. For the purpose of the Plan, and except as specifically set forth herein, notices and all other communications provided for in the Plan shall be in writing and shall be deemed to have been duly given when hand-delivered or mailed by United States certified mail, return receipt requested, postage prepaid, addressed to the Participant or Employee at his or her last known address, and to the Company at Atlantic Capital Bank, N.A., 3280 Peachtree Road, Suite 1600, Atlanta, GA 30305, provided that all notices to the Company shall be directed to the attention of the Human Resources Department; or to such other address as either party may have furnished to the other in writing in accordance herewith, except that notice of change of address shall be effective only upon receipt.

8.7 Service of Process. The Corporate Secretary of the Company shall be the agent for service of process in matters relating to the Plan.

8.8 ERISA Plan. The Plan shall be interpreted as, and is intended to qualify as, a severance pay plan under ERISA, and therefore does not constitute an employee pension benefit plan pursuant to Section 3(2) of ERISA.

8.9 Effect on Other Plans Sponsored by the Company. Nothing in this Plan is intended to or shall be construed to require the Company to establish or continue in effect any particular plan or benefit sponsored by the Company. The Company reserves the right to amend or terminate any of its benefit programs at any time under the procedures contained in those plans.

8.10 Construction. The masculine gender, when appearing in the Plan, shall include the feminine gender (and vice versa), and the singular shall include the plural, unless the Plan clearly states to the contrary. Headings and subheadings are for the purpose of reference only and are not to be considered in the construction of the Plan. If any provision of the Plan is determined to be for any reason invalid or unenforceable, the remaining provisions shall continue in full force and effect.

8.11 Governing Law. All of the provisions of the Plan shall be construed and enforced according to the laws of the State of Georgia and shall be administered according to the laws of such state, except as otherwise required by ERISA, the Code, or other applicable Federal law. To the extent lawful, the Company and each Participant or person claiming benefits under the Plan consents irrevocably to jurisdiction, service and venue in connection with any claim or controversy arising out of this Plan in the courts of the State of Georgia located in Fulton County, Georgia, and in the federal courts in the Northern District of Georgia.

8.12 Unsecured Creditor Status. The status of a Participant’s claim against the Company for a benefit under the Plan shall be the same as the status of a claim by a general and unsecured

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creditor of the Company, and any benefits payable under the Plan shall be paid solely from the Company’s general assets. Nothing in the Plan shall create any fiduciary or trust relationship between the Company and Atlantic Capital Bancshares and any Participant or other person.

IN WITNESS WHEREOF, the Company has caused this Plan document to be executed by its duly authorized representative as of the 19th day of October, 2017.

ATLANTIC CAPITAL BANK, N.A.

By: /s/ Douglas L. Williams

Name: Douglas L. Williams

Title: Chief Executive Officer

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General Plan Information

Plan Name

Atlantic Capital Bank Severance Plan

Plan Sponsor

Atlantic Capital Bank, N.A.3280 Peachtree Rd NE, Suite 1600 Atlanta, GA 30305855-693-7422

Employer Identification Number (EIN)

62-1816536

Plan Number

504

Plan Type

The Plan is a welfare benefit plan that provides severance pay upon certain qualifying terminations of employment. The benefits under the Plan are provided out of the general assets of the Company.

Plan Administrator

Plan Administrator, Atlantic Capital Bank Severance Plan

c/o Atlantic Capital Bank, N.A.3280 Peachtree Rd NE, Suite 1600 Atlanta, GA 30305
Attention: Chief Human Resources Officer855-693-7422

Agent for Service of Legal Process

The Corporate Secretary of the Company

Plan Year

The calendar year, except for the initial Plan Year which will commence on the Effective Date of the Plan and will end on December 31, 2017.

18

ERISA Rights Statement

As participant in this Plan, you are entitled to certain rights and protections under ERISA. ERISA provides that all Plan participants shall be entitled to:

• examine, without charge at the Plan Administrator’s office and at other specified locations, such as worksites, all documents governing the Plan, including collective bargaining agreements, and a copy of the latest Annual Report (Form 5500 series), if any, filed by the Plan with the U.S. Department of Labor and available at the Public Disclosure Room of the Employee Benefits Security Administration (f/k/a the Pension Welfare Benefits Administration).

• obtain copies of all documents governing the operation of the Plan including collective bargaining agreements and copies of the latest Annual Report (Form 5500 series), if any, and an updated summary plan description, by making a written request to the Plan Administrator and paying a reasonable charge for the copies.

• receive a summary of the Plan’s annual financial report. The Plan Administrator is required by law to furnish each participant under the Plan with a copy of this summary annual report.

In addition to creating rights for Plan participants, ERISA imposes duties upon the people who are responsible for the operation of the Plan. The people who operate the Plan, called “fiduciaries” of the Plan, have a duty to do so prudently and in your interest and in the interest of the other Plan participants and beneficiaries.

No one, including your employer or any other person may fire you or otherwise discriminate against you, in any way solely to prevent you from getting a benefit or exercising your rights under ERISA. If your claim for a benefit is denied or ignored, in whole or in part, you have a right to know why this was done, to obtain copies of documents relating to the decision without charge, and to appeal any denial, all within certain time schedules.

Under ERISA, there are steps you can take to enforce the above rights. For instance, if you request a copy of Plan documents or the latest Annual Report from the Plan and do not receive them within thirty (30) days, you may file suit in federal court. In such a case, the court may require the Plan Administrator to provide the documents and pay you up to $110 a day until you receive them, unless they were not sent because of reasons beyond the control of the Plan Administrator.

If you have a claim for benefits which is denied or ignored, in whole or in part, you may file suit in a state or federal court. If it should happen that Plan fiduciaries misuse the Plan’s money, or if you are discriminated against for asserting your rights, you may seek assistance from the U.S. Department of Labor or you may file suit in a federal court. The court will decide who should pay court costs and legal fees. If your suit is successful, the court may order the person you have sued to pay costs and fees. If you lose, the court may order you to pay these costs and fees, for example, if it finds your claim is frivolous.

19

If you have any questions about the Plan, you should contact the Plan Administrator. If you have any questions about your rights under ERISA, or if you need assistance in obtaining documents from the Plan Administrator, you should contact the nearest office of the Employee Benefits Security Administration, U.S. Department of Labor listed in your telephone directory or the Division of Technical Assistance and Inquiries, Employee Benefits Security Administration, U.S. Department of Labor, 200 Constitution Avenue, N.W., Washington, D.C. 20210. You may also obtain certain publications about your rights and responsibilities under ERISA by calling the publications hotline of the Employee Benefits Security Administration.

20

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: November 9, 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: November 9, 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 September 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.

November 9, 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 September 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.

November 9, 2017	/s/ Patrick T. Oakes
	Patrick T. Oakes
	Executive Vice President, Chief Financial Officer, and Secretary

XML

Document And Entity Information - shares	9 Months Ended
	Sep. 30, 2017	Nov. 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	Sep. 30, 2017
Document Fiscal Year Focus	2017
Document Fiscal Period Focus	Q3
Amendment Flag	false
Entity Common Stock, Shares Outstanding		25,728,186

XML

Consolidated Balance Sheets - USD ($) $ in Thousands	Sep. 30, 2017	Dec. 31, 2016
ASSETS
Cash and due from banks	$ 35,504	$ 36,790
Interest-bearing deposits in banks	40,558	118,039
Other short-term investments	5,189	10,896
Cash and cash equivalents	81,251	165,725
Securities available-for-sale	447,005	347,705
Other investments	35,818	23,806
Loans held for sale	3,274	35,219
Loans held for investment	1,905,432	1,981,330
Less: allowance for loan losses	(18,870)	(20,595)
Loans held for investment, net	1,886,562	1,960,735
Branch premises held for sale	0	2,995
Premises and equipment, net	11,747	11,958
Bank owned life insurance	63,284	62,160
Goodwill and intangible assets, net	27,945	29,567
Other real estate owned	1,494	1,872
Other assets	80,032	85,801
Total assets	2,638,412	2,727,543
Deposits:
Noninterest-bearing demand	599,292	643,471
Interest-bearing checking	270,740	264,062
Savings	30,131	27,932
Money market	865,238	912,493
Time	144,250	157,810
Brokered deposits	193,994	200,223
Total deposits	2,103,645	2,205,991
Deposits to be assumed in branch sale	0	31,589
Federal Home Loan Bank borrowings	125,000	110,000
Long-term debt	49,493	49,366
Other liabilities	35,520	26,939
Total liabilities	2,313,658	2,423,885
SHAREHOLDERS’ EQUITY
Preferred Stock, no par value – 10,000,000 shares authorized; no shares issued and outstanding as of September 30, 2017 and December 31, 2016	0	0
Common stock, no par value – 100,000,000 shares authorized; 25,716,418 and 25,093,135 shares issued and outstanding as of September 30, 2017, and December 31, 2016, respectively	298,469	292,747
Retained earnings	28,147	16,536
Accumulated other comprehensive (loss) income	(1,862)	(5,625)
Total shareholders’ equity	324,754	303,658
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY	$ 2,638,412	$ 2,727,543

XML

Consolidated Balance Sheets (Parenthetical) - shares	Sep. 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)	25,716,418	25,093,135
Common stock outstanding (in shares)	25,716,418	25,093,135

XML

Consolidated Statements of Income - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
INTEREST INCOME
Loans, including fees	$ 21,491	$ 20,511	$ 62,846	$ 60,418
Investment securities – available-for-sale	2,298	1,293	6,671	4,221
Interest and dividends on other interest-earning assets	562	491	1,617	1,271
Total interest income	24,351	22,295	71,134	65,910
INTEREST EXPENSE
Interest on deposits	2,693	1,956	7,221	5,470
Interest on Federal Home Loan Bank advances	459	133	1,213	324
Interest on federal funds purchased and securities sold under agreements to repurchase	84	37	196	191
Interest on long-term debt	824	815	2,471	2,457
Other	0	0	0	38
Total interest expense	4,060	2,941	11,101	8,480
NET INTEREST INCOME BEFORE PROVISION FOR LOAN LOSSES	20,291	19,354	60,033	57,430
Provision for loan losses	322	463	2,936	1,608
NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES	19,969	18,891	57,097	55,822
NONINTEREST INCOME
Service charges	1,247	1,270	3,870	4,160
(Loss) gain on sales of securities available-for-sale	(80)	0	(80)	44
Gain on sales of other assets	44	71	788	150
Mortgage income	320	632	965	1,418
Trust income	437	361	1,332	1,061
Derivatives income	(3)	69	62	232
Bank owned life insurance	384	424	1,146	1,215
SBA lending activities	888	959	3,286	3,043
TriNet lending activities	20	0	60	1,144
Gains on sale of branches	0	0	302	3,885
Other noninterest income	220	216	890	950
Total noninterest income	3,477	4,002	12,621	17,302
NONINTEREST EXPENSE
Salaries and employee benefits	10,409	10,059	32,077	31,034
Occupancy	1,129	1,235	3,433	3,609
Equipment and software	776	862	2,577	2,272
Professional services	1,595	442	3,472	1,950
Postage, printing and supplies	63	61	226	389
Communications and data processing	982	617	3,038	2,227
Marketing and business development	272	269	721	853
FDIC premiums	308	415	754	1,306
Merger and conversion costs	0	579	304	2,538
Amortization of intangibles	391	520	1,286	1,950
Foreclosed property/problem asset expense	7	39	117	198
Other noninterest expense	1,572	2,198	4,866	6,179
Total noninterest expense	17,504	17,296	52,871	54,505
INCOME BEFORE PROVISION FOR INCOME TAXES	5,942	5,597	16,847	18,619
Provision for income taxes	1,890	1,889	5,236	6,833
NET INCOME	$ 4,052	$ 3,708	$ 11,611	$ 11,786
NET INCOME PER SHARE:
Net income per share – basic (in dollars per share)	$ 0.16	$ 0.15	$ 0.45	$ 0.48
Net income per share – diluted (in dollars per share)	$ 0.16	$ 0.15	$ 0.45	$ 0.47

XML

Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Statement of Comprehensive Income [Abstract]
Net income	$ 4,052	$ 3,708	$ 11,611	$ 11,786
Unrealized gains (losses) on available-for-sale securities:
Unrealized holding gains (losses) arising during the period, net of tax of $272, ($329), $2,450, and $2,354, respectively	434	(524)	3,916	3,771
Reclassification adjustment for losses (gains) included in net income net of tax of $31, $0, $31, and ($17), respectively	49	0	49	(27)
Unrealized gains on available-for-sale securities, net of tax	483	(524)	3,965	3,744
Cash flow hedges:
Net unrealized derivative gains (losses) on cash flow hedges, net of tax of ($46), ($169), ($125), and $301, respectively	(75)	(269)	(202)	473
Changes from cash flow hedges	(75)	(269)	(202)	473
Other comprehensive income, net of tax	408	(793)	3,763	4,217
Comprehensive income	$ 4,460	$ 2,915	$ 15,374	$ 16,003

XML

Consolidated Statements of Comprehensive Income (Parenthetical) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Statement of Comprehensive Income [Abstract]
Unrealized holding gains arising during the period, net of tax	$ 272	$ (329)	$ 2,450	$ 2,354
Reclassification adjustment for gains (losses) included in net income net of tax	31	0	31	(17)
Net unrealized derivative (losses) gains on cash flow hedges, net of tax	$ (46)	$ (169)	$ (125)	$ 301

XML

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	11,786		11,786
Change in unrealized gains on investment securities available-for-sale, net	3,744			3,744
Change in unrealized gains (losses) on cash flow hedges	473			473
Comprehensive income	16,003
Issuance of restricted stock (in shares)		91,486
Issuance of common stock for option exercises (in shares)		366,918
Issuance of common stock for option exercises	2,568	$ 2,568
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	378	378
Stock-based compensation	638	$ 638
Ending balance (in shares) at Sep. 30, 2016		24,950,099
Accumulated other comprehensive income (loss) end of period at Sep. 30, 2016	308,463	$ 290,835	14,927	2,701
Accumulated other comprehensive income (loss) beginning of period at Jun. 30, 2016				3,494
Comprehensive income:
Net income	3,708
Change in unrealized gains on investment securities available-for-sale, net	(524)
Change in unrealized gains (losses) on cash flow hedges	(269)
Comprehensive income	2,915
Ending balance (in shares) at Sep. 30, 2016		24,950,099
Accumulated other comprehensive income (loss) end of period at Sep. 30, 2016	$ 308,463	$ 290,835	14,927	2,701
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	11,611		11,611
Change in unrealized gains on investment securities available-for-sale, net	3,965			3,965
Change in unrealized gains (losses) on cash flow hedges	(202)			(202)
Comprehensive income	$ 15,374
Issuance of restricted stock (in shares)		101,791
Issuance of common stock for option exercises (in shares)	718,912	459,693
Issuance of common stock for option exercises	$ 3,172	$ 3,172
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	869	869
Stock-based compensation	$ 472	$ 472
Ending balance (in shares) at Sep. 30, 2017	25,716,418	25,716,418
Accumulated other comprehensive income (loss) end of period at Sep. 30, 2017	$ 324,754	$ 298,469	28,147	(1,862)
Accumulated other comprehensive income (loss) beginning of period at Jun. 30, 2017				(2,270)
Comprehensive income:
Net income	4,052
Change in unrealized gains on investment securities available-for-sale, net	483
Change in unrealized gains (losses) on cash flow hedges	(75)
Comprehensive income	$ 4,460
Ending balance (in shares) at Sep. 30, 2017	25,716,418	25,716,418
Accumulated other comprehensive income (loss) end of period at Sep. 30, 2017	$ 324,754	$ 298,469	$ 28,147	$ (1,862)

XML

Consolidated Statements of Cash Flows - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016
OPERATING ACTIVITIES
Net income	$ 11,611	$ 11,786
Adjustments to reconcile net income to net cash provided by operating activities
Provision for loan losses	2,936	1,608
Depreciation, amortization, and accretion	4,088	4,550
Amortization of restricted stock compensation	869	378
Stock option compensation	472	638
Loss (gain) on sales of available-for-sale securities	80	(44)
Loss on disposition of premises and equipment, net	347	0
Net gains on sales of other real estate owned	(267)	(114)
Gain on sale of tax credit	(426)	0
Net increase in cash value of bank owned life insurance	(1,124)	(1,167)
Gain on bank owned life insurance	0	(27)
Net gains on sale of branches	(302)	(3,885)
Origination of servicing assets	(749)	(1,295)
Proceeds from sales of SBA loans	34,448	41,890
Net gains on sale of SBA loans	(2,367)	(2,743)
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	7,587	(47,019)
Net increase in other assets	(4,115)	(8,929)
Net increase (decrease) in accrued expenses and other liabilities	9,454	(2,237)
Net cash provided by operating activities	62,542	89,285
Activity in securities available-for-sale:
Prepayments	35,271	32,438
Maturities and calls	5,190	26,932
Sales	1,813	65,103
Purchases	(139,465)	(117,950)
Net decrease (increase) in loans held for investment	38,720	(294,337)
Purchases of Federal Home Loan Bank stock, net	(721)	(8,569)
Purchases of Federal Reserve Bank stock, net	(91)	(3,055)
Proceeds from bank owned life insurance benefits	0	36
Proceeds from sales of other real estate	1,081	1,814
Net cash received (paid) for branch divestiture	5,379	(140,295)
Purchases of premises and equipment, net	(1,353)	(467)
Net cash used in investing activities	(54,176)	(438,350)
FINANCING ACTIVITIES
Net change in deposits	(111,371)	116,885
Proceeds from Federal Home Loan Bank advances	1,404,000	915,000
Repayments of Federal Home Loan Bank advances	(1,389,000)	(745,000)
Proceeds from exercise of stock options	3,531	2,767
Net cash (used in) provided by financing activities	(92,840)	289,652
NET CHANGE IN CASH AND CASH EQUIVALENTS	(84,474)	(59,413)
CASH AND CASH EQUIVALENTS – beginning of period	165,725	202,885
CASH AND CASH EQUIVALENTS – end of period	81,251	143,472
SUPPLEMENTAL SCHEDULE OF CASH FLOWS
Interest paid	12,270	9,386
Income taxes paid	$ 840	$ 3,462

XML

Accounting Policies and Basis of Presentation

9 Months Ended

Sep. 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.

XML

Accounting Standards Updates and Recently Adopted Standards

9 Months Ended

Sep. 30, 2017

Accounting Changes and Error Corrections [Abstract]

Accounting Standards Updates and Recently Adopted Standards

ACCOUNTING STANDARDS UPDATES AND RECENTLY ADOPTED STANDARDS

In August 2017, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2017-12 - “Derivatives and Hedging: Targeted Improvements to Accounting for Hedging Activities.” The purpose of this updated guidance is to better align a company’s financial reporting for hedging activities with the economic objectives of those activities. ASU 2017-12 is effective for public business entities for fiscal years beginning after December 15, 2018, with early adoption, including adoption in an interim period, permitted. Atlantic Capital plans to adopt ASU 2017-12 on January 1, 2018. The guidance requires a modified retrospective transition method resulting in the cumulative effect of the change on the opening balance of each affected component of equity in the statement of financial position as of the date of adoption. Atlantic Capital does not expect adoption to have a material impact on its consolidated financial statements.

In May 2017, the FASB issued 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, this ASU will not 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

9 Months Ended

Sep. 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 $0 and $304,000 for the three and nine months ended September 30, 2017, respectively, and $579,000 and $2.5 million for the three and nine months ended September 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

9 Months Ended

Sep. 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 September 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
September 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	$	5,189	$	—	$	5,189	$	(5,189	)	$	—		$	—
Derivatives	3,993		—		3,993		—			—			3,993
Total	$	9,182	$	—	$	9,182	$	(5,189	)	$	—		$	3,993
							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	4,184		—		4,184		(2,868		)	(1,316		)	—
Total	$	4,184	$	—	$	4,184	$	(2,868	)	$	(1,316	)	$	—
							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

9 Months Ended

Sep. 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 September 30, 2017 and December 31, 2016.

Available-For-Sale	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
	(in thousands)
September 30, 2017
Debt securities—
U.S. Government agencies	$	34,961	$	108	$	(286	)	$	34,783
U.S. states and political divisions	96,813		339		(3,373		)	93,779
Trust preferred securities	4,747		—		(72		)	4,675
Corporate debt securities	16,700		115		(659		)	16,156
Residential mortgage-backed securities	296,978		3,147		(2,513		)	297,612
Total	$	450,199	$	3,709	$	(6,903	)	$	447,005
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 September 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	$	625	$	625
Over 1 year through 5 years	25,696		25,507
5 years to 10 years	53,041		52,506
Over 10 years	73,859		70,755
	153,221		149,393
Residential mortgage-backed securities	296,978		297,612
Total	$	450,199	$	447,005

The following table summarizes available-for-sale securities in an unrealized loss position as of September 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)
September 30, 2017
U.S. Government agencies	$	22,309	$	(221	)	2,582		$	(65	)	$	24,891	$	(286	)
U.S. states and political divisions	39,864		(1,038		)	36,070		(2,335		)	75,934		(3,373		)
Trust preferred securities	—		—			4,675		(72		)	4,675		(72		)
Corporate debt securities	3,501		(41		)	5,895		(618		)	9,396		(659		)
Residential mortgage-backed securities	77,392		(759		)	89,130		(1,754		)	166,522		(2,513		)
Totals	$	143,066	$	(2,059	)	$	138,352	$	(4,844	)	$	281,418	$	(6,903	)
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 September 30, 2017, there were 245 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 September 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 nine months endedSeptember 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 nine months endedSeptember 30, 2017 and 2016.

	Three Months Ended September 30,					Nine Months Ended September 30,
	2017			2016		2017			2016
	(in thousands)
Proceeds from sales	$	1,813		$	—	$	1,813		$	65,103
Gross realized gains	—			—		—			449
Gross realized losses	(80		)	—		(80		)	(405		)
Net gains on sales of securities	$	(80	)	$	—	$	(80	)	$	44

Investment securities with a carrying value of $100.0 million and $104.9 million were pledged to secure public funds and other borrowings at September 30, 2017 and December 31, 2016, respectively.

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Loans and Allowance for Loan Losses

9 Months Ended

Sep. 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 September 30, 2017 and December 31, 2016, is summarized below.

	September 30, 2017			December 31, 2016
	(in thousands)
Loans held for sale
Branch loans held for sale	$	—		$	30,917
Other loans held for sale	3,274			4,302
Total loans held for sale	$	3,274		$	35,219
Loans held for investment
Commercial loans:
Commercial and industrial	$	562,426		$	531,061
Commercial real estate	944,854			858,778
Construction and land	132,080			219,352
Mortgage warehouse participations	41,551			147,519
Total commercial loans	1,680,911			1,756,710
Residential:
Residential mortgages	101,976			101,921
Home equity	78,773			77,358
Total residential loans	180,749			179,279
Consumer	31,750			27,338
Other	16,106			21,565
Total loans	1,909,516			1,984,892
Less net deferred fees and other unearned income	(4,084		)	(3,562		)
Less allowance for loan losses	(18,870		)	(20,595		)
Loans held for investment, net	$	1,886,562		$	1,960,735

At September 30, 2017 and December 31, 2016, loans with a carrying value of $473.5 million and $474.8 million, respectively, were pledged as collateral to secure FHLB advances and the Federal Reserve discount window.

At September 30, 2017, the carrying value and outstanding balance of Purchased Credit Impaired (“PCI”) loans accounted for under ASC 310-30 was $12.1 million and $14.6 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 Nine Months Ended
	September 30, 2017			September 30, 2016			September 30, 2017			September 30, 2016
	(in thousands)
Balance at beginning of period	$	3,130		$	1,826		$	3,467		$	2,369
Additions due to acquisitions	—			—			—			—
Accretion	(427		)	(341		)	(1,206		)	(884		)
Reclassification of nonaccretable discount due to change in expected cash flows	(202		)	2,404			142			2,404
Other changes, net	281			295			379			295
Balance at end of period	$	2,782		$	4,184		$	2,782		$	4,184

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 September 30, 2017, the remaining accretable fair value discount on loans acquired through a business combination and not accounted for under ASC 310-30 was $3.1 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 nine months endedSeptember 30, 2017 and 2016.

	2017												2016
Three Months Ended September 30,	Commercial			Residential			Consumer			Total			Commercial			Residential			Consumer			Total
	(in thousands)
Allowance for loan losses:
Beginning balance	$	20,692		$	860		$	318		$	21,870		$	16,469		$	1,389		$	519		$	18,377
Provision for loan losses	273			55			(6		)	322			409			64			(10		)	463
Loans charged-off	(3,308		)	(31		)	(7		)	(3,346		)	(287		)	(9		)	(65		)	(361		)
Recoveries	16			—			8			24			34			7			14			55
Total ending allowance balance	$	17,673		$	884		$	313		$	18,870		$	16,625		$	1,451		$	458		$	18,534
	2017												2016
Nine Months Ended September 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	3,152			(451		)	235			2,936			1,934			(503		)	177			1,608
Loans charged-off	(4,221		)	(85		)	(396		)	(4,702		)	(1,897		)	(34		)	(249		)	(2,180		)
Recoveries	25			2			14			41			51			7			143			201
Total ending allowance balance	$	17,673		$	884		$	313		$	18,870		$	16,625		$	1,451		$	458		$	18,534

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 September 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 September 30, 2017 and December 31, 2016.

September 30, 2017	Commercial		Residential		Consumer		Total
	(in thousands)
Allowance for loan losses:
Ending allowance balance attributable to loans
Individually evaluated for impairment	$	490	$	—	$	—	$	490
Collectively evaluated for impairment	17,102		884		311		18,297
PCI	81		—		2		83
Total ending allowance balance	$	17,673	$	884	$	313	$	18,870
Loans:
Loans individually evaluated for impairment	$	9,049	$	719	$	—	$	9,768
Loans collectively evaluated for impairment	1,662,299		177,511		47,848		1,887,658
PCI	9,563		2,519		8		12,090
Total ending loans balance	$	1,680,911	$	180,749	$	47,856	$	1,909,516
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 nine months endedSeptember 30, 2017 and 2016:

	For the Three Months Ended September 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	$	2,424	$	2,361	$	—	$	2,287	$	14	$	3,118	$	3,057	$	—	$	3,028	$	40
Commercial real estate	1,946		1,783		—		1,889		—		—		—		—		—		—
Construction and land	—		—		—		—		—		—		—		—		—		—
Residential mortgages	236		190		—		191		—		—		—		—		—		—
Home equity	529		529		—		531		—		—		—		—		—		—
Mortgage warehouse	—		—		—		—		—		—		—		—		—		—
Consumer	—		—		—		—		—		—		—		—		—		—
Total	$	5,135	$	4,863	$	—	$	4,898	$	14	$	3,118	$	3,057	$	—	$	3,028	$	40
Impaired loans with an allowance recorded:
Commercial and industrial	$	4,333	$	4,333	$	356	$	4,375	$	49	$	4,461	$	4,461	$	481	$	4,461	$	—
Commercial real estate	572		572		134		576		6		1,132		1,132		205		1,132		—
Construction and land	—		—		—		—		—		—		—		—		—		—
Residential mortgages	—		—		—		—		—		406		406		65		406		—
Home equity	—		—		—		—		—		—		—		—		—		—
Mortgage warehouse	—		—		—		—		—		—		—		—		—		—
Consumer	—		—		—		—		—		—		—		—		—		—
Total	$	4,905	$	4,905	$	490	$	4,951	$	55	$	5,999	$	5,999	$	751	$	5,999	$	—
Total impaired loans	$	10,040	$	9,768	$	490	$	9,849	$	69	$	9,117	$	9,056	$	751	$	9,027	$	40

	For the Nine Months Ended September 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	$	2,424	$	2,361	$	—	$	2,717	$	42	$	3,118	$	3,057	$	—	$	2,960	$	112
Commercial real estate	1,946		1,783		—		1,925		1		—		—		—		—		—
Construction and land	—		—		—		—		—		—		—		—		—		—
Residential mortgages	236		190		—		221		—		—		—		—		—		—
Home equity	529		529		—		264		—		—		—		—		—		—
Mortgage warehouse	—		—		—		—		—		—		—		—		—		—
Consumer	—		—		—		—		—		—		—		—		—		—
Total	$	5,135	$	4,863	$	—	$	5,127	$	43	$	3,118	$	3,057	$	—	$	2,960	$	112
Impaired loans with an allowance recorded:
Commercial and industrial	$	4,333	$	4,333	$	356	$	4,454	$	149	$	4,461	$	4,461	$	481	$	4,461	$	—
Commercial real estate	572		572		134		581		19		1,132		1,132		205		1,132		—
Construction and land	—		—		—		—		—		—		—		—		—		—
Residential mortgages	—		—		—		—		—		406		406		65		406		—
Home equity	—		—		—		—		—		—		—		—		—		—
Mortgage warehouse	—		—		—		—		—		—		—		—		—		—
Consumer	—		—		—		—		—		—		—		—		—		—
Total	$	4,905	$	4,905	$	490	$	5,035	$	168	$	5,999	$	5,999	$	751	$	5,999	$	—
Total impaired loans	$	10,040	$	9,768	$	490	$	10,162	$	211	$	9,117	$	9,056	$	751	$	8,959	$	112

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 September 30, 2017 and December 31, 2016, the Company had a recorded investment in TDRs of $7.1 million and $6.6 million, respectively. The Company had commitments to lend additional funds of $34,000 and $387,000 on loans modified as TDRs, as of September 30, 2017 and December 31, 2016, respectively. During the three months ended September 30, 2017, a large Commercial and Industrial borrower was sold. As a part of the deficiency agreement, part of the credit relationship was restructured. The restructure included a charge off and the reclassification of the remaining balance to a TDR of $980,000. Additionally, during the nine months ended September 30, 2017, the modification of terms for one Home Equity loan included a short term extension of the maturity date. During the three and nine months endedSeptember 30, 2016, the modification of terms for one Commercial and Industrial loan included an extension of the maturity date and related amortization period date of two years. The modification of terms for two Commercial Real Estate loans established an interest only payment period of six months. 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 September 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 Nonaccruing		Total
	(in thousands)
September 30, 2017
Commercial and industrial	$	515,388	$	13,362	$	27,179	$	996	$	5	$	556,930
Commercial real estate	925,588		9,730		4,037		133		1,631		941,119
Construction and land	127,005		4,721		—		22		—		131,748
Residential mortgages	97,685		1,365		714		248		328		100,340
Home equity	76,685		41		469		695		—		77,890
Mortgage warehouse	41,551		—		—		—		—		41,551
Consumer/Other	47,594		60		194		—		—		47,848
Total loans, excluding PCI loans	$	1,831,496	$	29,279	$	32,593	$	2,094	$	1,964	$	1,897,426
Commercial and industrial	$	—	$	4,781	$	715	$	—	$	—	$	5,496
Commercial real estate	3,091		233		295		—		116		3,735
Construction and land	298		7		27		—		—		332
Residential mortgages	396		540		700		—		—		1,636
Home equity	105		475		303		—		—		883
Mortgage warehouse	—		—		—		—		—		—
Consumer/Other	1		1		6		—		—		8
Total PCI loans	$	3,891	$	6,037	$	2,046	$	—	$	116	$	12,090

	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 September 30, 2017 and December 31, 2016 by class of loans.

	As of September 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	$	548,425	$	7,379	$	125	$	1,001	$	5,496	$	562,426
Commercial real estate	936,836		2,519		—		1,764		3,735		944,854
Construction and land	131,328		398		—		22		332		132,080
Residential mortgages	98,308		1,258		198		576		1,636		101,976
Home equity	76,951		244		—		695		883		78,773
Mortgage warehouse	41,551		—		—		—		—		41,551
Consumer	47,676		—		172		—		8		47,856
Total Loans	$	1,881,075	$	11,798	$	495	$	4,058	$	12,090	$	1,909,516

	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

9 Months Ended

Sep. 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 September 30, 2017 and December 31, 2016 is summarized below:

	September 30,			December 31,
	2017			2016
	(in thousands)
Core deposit intangible	$	9,544		$	9,544
Less: accumulated amortization	(4,257		)	(2,971		)
Less: impairment related to divested branches	(2,286		)	(1,949		)
Core deposit intangible, net	3,001			4,624
Servicing assets, net	3,185			3,184
Total other intangibles, net	6,186			7,808
Goodwill	21,759			21,759
Total goodwill and other intangible assets, net	$	27,945		$	29,567

During the nine months endedSeptember 30, 2017 and 2016, Atlantic Capital recorded measurement period adjustments that decreased goodwill by $0 and $1.6 million, 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 nine months endedSeptember 30, 2017 and 2016. The following table presents activity for goodwill and other intangible assets:

	For the Three Months Ended September 30,									For the Nine Months Ended September 30,
	Goodwill			Core Deposit Intangible			Total			Goodwill			Core Deposit Intangible			Total
	(in thousands)
2017
Balance, beginning of period	$	21,759		$	3,392		$	25,151		$	21,759		$	4,624		$	26,383
Amortization	—			(391		)	(391		)	—			(1,286		)	(1,286		)
Impairment, due to branch divestiture	—			—			—			—			(337		)	(337		)
Balance, end of period	$	21,759		$	3,001		$	24,760		$	21,759		$	3,001		$	24,760
2016
Balance, beginning of period	$	22,446		$	5,639		$	28,085		$	23,352		$	9,018		$	32,370
Amortization	—			(520		)	(520		)	—			(1,950		)	(1,950		)
Impairment, due to branch divestiture	—			—			—			—			(1,949		)	(1,949		)
Measurement period adjustments	(687		)	—			(687		)	(1,593		)	—			(1,593		)
Balance, end of period	$	21,759		$	5,119		$	26,878		$	21,759		$	5,119		$	26,878

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Servicing Assets

9 Months Ended

Sep. 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 September 30, 2017 and December 31, 2016, the balance of SBA loans sold and serviced by Atlantic Capital totaled $126.0 million and $107.0 million, respectively.

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

	Three months ended September 30,						Nine months ended September 30,
SBA Loan Servicing Assets	2017			2016			2017			2016
	(in thousands)
Beginning carrying value, net	$	2,564		$	2,117		$	2,359		$	1,687
Additions	157			328			750			889
Amortization	(221		)	(125		)	(609		)	(256		)
Impairment	—			—			—			—
Ending carrying value	$	2,500		$	2,320		$	2,500		$	2,320

At September 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	September 30, 2017				December 31, 2016
	(dollars in thousands)
Fair value of retained servicing assets	$	2,771			$	2,474
Weighted average life	6.62 years				6.52 years
Prepayment speed:	7.66			%	7.67			%
Decline in fair value due to a 10% adverse change	$	(108	)		$	(89	)
Decline in fair value due to a 20% adverse change	$	(183	)		$	(151	)
Weighted average discount rate	12.56			%	12.27			%
Decline in fair value due to a 100 bps adverse change	$	(117	)		$	(97	)
Decline in fair value due to a 200 bps adverse change	$	(200	)		$	(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 nine months endedSeptember 30, 2017 and 2016 are presented in the following table.

	Three months ended September 30,						Nine months ended September 30,
TriNet Servicing Assets	2017			2016			2017			2016
	(in thousands)
Beginning carrying value, net	$	731		$	1,471		$	825		$	1,175
Additions	—			—			—			406
Amortization	(46		)	(47		)	(140		)	(157		)
Impairment	—			(551		)	—			(551		)
Ending carrying value	$	685		$	873		$	685		$	873

At September 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	September 30, 2017				December 31, 2016
	(dollars in thousands)
Fair value of retained servicing assets	$	761			$	840
Weighted average life	8.25 years				8.47 years
Prepayment speed:	5.00			%	5.00			%
Decline in fair value due to a 10% adverse change	$	(11	)		$	(12	)
Decline in fair value due to a 20% adverse change	$	(22	)		$	(24	)
Weighted average discount rate	8.00			%	8.00			%
Decline in fair value due to a 100 bps adverse change	$	(21	)		$	(25	)
Decline in fair value due to a 200 bps adverse change	$	(41	)		$	(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)

9 Months Ended

Sep. 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 Nine Months Ended
	September 30, 2017									September 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	$	(3,690	)	$	1,420		$	(2,270	)	$	(9,144	)	$	3,519		$	(5,625	)
Unrealized net gains (losses) on investment securities available-for-sale	706			(272		)	434			6,366			(2,450		)	3,916
Reclassification adjustment for net realized losses on investment securities available-for-sale	80			(31		)	49			80			(31		)	49
Unrealized net gains (losses) on derivatives	(121		)	46			(75		)	(327		)	125			(202		)
Accumulated other comprehensive income (loss) end of period	$	(3,025	)	$	1,163		$	(1,862	)	$	(3,025	)	$	1,163		$	(1,862	)

	For the Three Months Ended									For the Nine Months Ended
	September 30, 2016									September 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	$	5,691		$	(2,197	)	$	3,494		$	(2,455	)	$	939		$	(1,516	)
Unrealized net gains (losses) on investment securities available-for-sale	(853		)	329			(524		)	6,125			(2,354		)	3,771
Reclassification adjustment for net realized gains on investment securities available-for-sale	—			—			—			(44		)	17			(27		)
Unrealized net gains (losses) on derivatives	(438		)	169			(269		)	774			(301		)	473
Accumulated other comprehensive income (loss) end of period	$	4,400		$	(1,699	)	$	2,701		$	4,400		$	(1,699	)	$	2,701

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Earnings Per Common Share

9 Months Ended

Sep. 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 nine months endedSeptember 30, 2017 and 2016.

	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2017		2016		2017		2016
(in thousands, except share and per share amounts)
Net income available to common shareholders	$	4,052	$	3,708	$	11,611	$	11,786
Weighted average shares outstanding
Basic (1)	25,699,179		24,891,822		25,548,646		24,674,953
Effect of dilutive securities:
Stock options and warrants	191,600		368,458		251,205		431,297
Diluted	25,890,779		25,260,280		25,799,851		25,106,250
Income per common share:
Basic	$	0.16	$	0.15	$	0.45	$	0.48
Diluted	$	0.16	$	0.15	$	0.45	$	0.47
(1) Unvested restricted shares are participating securities and included in basic share calculations.

Stock options and warrants outstanding of 550 at September 30, 2017 and 162,428 at September 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 September 30, 2017, 25,716,418 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

9 Months Ended

Sep. 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 September 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 September 30, 2017 and December 31, 2016, Atlantic Capital had interest rate swaps designated as cash flow hedges with an aggregate notional amount of $75.0 million and $50.0 million, respectively.

No hedge ineffectiveness gains or losses were recognized on active cash flow hedges for the three and nine months endedSeptember 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 $237,000 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 September 30, 2017 and December 31, 2016, Atlantic Capital had interest rate swaps related to this program with an aggregate notional amount of $139.1 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 September 30, 2017 and December 31, 2016, Atlantic Capital had minimum collateral posting thresholds with certain of its derivative counterparties and posted collateral of $9.5 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 September 30, 2017 and December 31, 2016, Atlantic Capital had credit risk participation agreements with a notional amount of $15.6 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 September 30, 2017 and December 31, 2016:

Derivatives designated as hedging instruments under ASC 815
(in thousands)		September 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	$	—	$	—	$	50,000	$	186
Cash flow hedge of LIBOR based loans	Other liabilities	$	75,000	$	56	$	—	$	—
Derivatives not designated as hedging instruments under ASC 815
(in thousands)		September 30, 2017				December 31, 2016
Interest Rate Products	Balance Sheet Location	Notional Amount		Fair Value		Notional Amount		Fair Value
Customer swap positions	Other assets	$	69,543	$	1,168	$	70,352	$	1,364
Zero premium collar	Other assets	95,688		2,825		98,697		2,760
		$	165,231	$	3,993	$	169,049	$	4,124
Dealer offsets to customer swap positions	Other liabilities	$	69,543	$	1,214	$	70,352	$	1,371
Credit risk participation	Other liabilities	15,556		6		4,460		—
Dealer offset to zero premium collar	Other liabilities	95,688		2,908		98,697		2,760
		$	180,787	$	4,128	$	173,509	$	4,131

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

Derivatives in Cash Flow Hedging Relationships
	Three Months Ended September 30,											Nine Months Ended September 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	$	(75	)	$	(269	)	Interest income	$	84	$	177	$	(202	)	$	473	Interest income	$	331	$	546

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Other Borrowings and Long Term Debt

9 Months Ended

Sep. 30, 2017

Debt Disclosure [Abstract]

Other Borrowings and Long Term Debt

OTHER BORROWINGS AND LONG TERM DEBT

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

	September 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 October 3, 2017	40,000		1.16	%	Fixed rate advance maturing January 17, 2017	40,000		0.64	%
Fixed rate advance maturing October 11, 2017	40,000		1.15	%	Fixed rate advance maturing January 24, 2017	40,000		0.61	%
Fixed rate advance maturing October 13, 2017	45,000		1.16	%	Fixed rate advance maturing January 30, 2017	30,000		0.62	%
Total	$	125,000			Total	$	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.

	September 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		507		634
Subordinated debt, net	$	49,493	$	49,366

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

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Share-Based Compensation

9 Months Ended

Sep. 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 September 30, 2017, approximately 3,825,000 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 September 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. The table below summarizes the assumptions used to calculate the fair value of options granted/modified during 2017:

	2017
Risk‑free interest rate	1.00-1.99%
Expected term in years	.25-8
Expected stock price volatility	23.2-25.3%
Dividend yield	—	%

The following table represents stock option and warrant activity for the nine months endedSeptember 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
Granted	30,400		12.39
Exercised	(718,912	)	10.53
Forfeited	(32,846	)	12.28
Expired	(635	)	126.22
Outstanding, September 30, 2017	763,711		$	12.64	5.77	$	4,348
Exercisable, September 30, 2017	518,336		$	11.73	4.77	$	3,466

Atlantic Capital recognized compensation expense relating to stock options of $191,000 and $472,000 for the three and nine months endedSeptember 30, 2017, respectively, and $192,000 and $638,000 for the three and nine months endedSeptember 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 nine months endedSeptember 30, 2017:

	Shares		Weighted Average Grant-Date Fair Value
Outstanding, December 31, 2016	259,165		$	13.70
Granted	110,293		17.85
Vested	(64,637	)	12.73
Forfeited	(36,674	)	14.88
Outstanding, September 30, 2017	268,147		$	15.47

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 and nine months ended September 30, 2017, compensation expense of $396,000 and $869,000, respectively, was recognized related to restricted stock awards. For the three and nine months endedSeptember 30, 2016, compensation expense of $71,000 and $527,000, respectively, was recognized related to restricted stock awards.

As of September 30, 2017, there was $3.0 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 3.11 years.

During the three months ended September 30, 2017, the Company modified options for 30,400 shares and 10,628 restricted stock awards to four individuals. The modifications allowed for the immediate vesting of the awards upon termination of service. The total incremental cost resulting from the modifications was $14,000 for the three and nine months ended September 30, 2017.

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Fair Value Measurements

9 Months Ended

Sep. 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 nine months ended September 30, 2017. There was one transfer between Level 2 and Level 3 and no transfers between Level 1 and Level 2 during the nine months ended September 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 September 30, 2017 and December 31, 2016.

	Fair Value Measurements at
	September 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	$	—	$	34,783	$	—	$	34,783
U.S. states and political subdivisions	—		93,779		—		93,779
Trust preferred securities	—		4,675		—		4,675
Corporate debt securities	—		16,156		—		16,156
Mortgage-backed securities	—		297,612		—		297,612
Total securities available-for-sale	$	—	$	447,005	$	—	$	447,005
Interest rate derivative assets	$	—	$	3,993	$	—	$	3,993
Interest rate derivative liabilities	$	—	$	4,184	$	—	$	4,184

	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 nine months endedSeptember 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 September 30, 2017 and December 31, 2016.

September 30, 2017		Level 1 Fair Value Measurement		Level 2 Fair Value Measurement		Level 3 Fair Value Measurement		Total
	(in thousands)
Impaired Loans		$	—	$	—	$	2,970	$	2,970

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 September 30, 2017 and December 31, 2016.

	Fair Value Measurements at
	September 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	$	35,504	$	35,504	$	—	$	—
Interest bearing deposits in banks	40,558		40,558		—		—
Other short-term investments	5,189		5,189		—		—
Total securities available-for-sale	447,005		—		447,005		—
FHLB stock	7,788		—		—		7,788
Federal Reserve Bank stock	9,781		—		—		9,781
Loans held for investment, net	1,886,562		—		—		1,927,726
Loans held for sale	3,274		—		3,274		—
Derivative assets	3,993		—		3,993		—
Financial liabilities
Deposits	$	2,103,645	$	—	$	2,019,911	$	—
Subordinated debt	49,493		—		49,871		—
FHLB advances	125,000		—		125,007		—
Derivative financial instruments	4,184		—		4,184		—

	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

9 Months Ended

Sep. 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 September 30, 2017 and December 31, 2016 was as follows:

	September 30, 2017		December 31, 2016
	(in thousands)
Financial Instruments whose contract amount represents credit risk:
Commitments to extend credit	$	686,685	$	617,432
Standby letters of credit	13,677		16,625
	$	700,362	$	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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Subsequent Event

9 Months Ended

Sep. 30, 2017

Subsequent Events [Abstract]

Subsequent Events

SUBSEQUENT EVENTS

On October 25, 2017, Atlantic Capital entered into a Separation Agreement with D. Michael Kramer in connection with the resignation from his position as President and Chief Operating Officer of the Company.

The Separation Agreement provides for benefits to and imposes obligations upon Mr. Kramer. Specifically, Mr. Kramer is entitled to receive the following payments and benefits under the Separation Agreement:

• all accrued but unpaid base salary through December 22, 2017;

• a cash payment of $407,265, which represents one (1) times his base salary;

• a cash payment of $183,269, which represents one (1) times his target bonus opportunity, under the Company’s Executive Officer Short Term Incentive Plan (the “STI Plan”) for 2017;

• a cash payment of $150,000, which represents the pro-rata portion of his STI Plan bonus opportunity deemed earned for 2017;

• a cash payment of $612,883, which represents accrued awards deemed earned under the Company’s Long Term Incentive Plan;

• acceleration of 14,000 shares of unvested restricted stock and 120,680 unvested options and extension of the post-termination exercise period for options; and

• reimbursement of COBRA premiums for 12 months following termination, so long as he is not entitled to obtain insurance from a subsequent employer.

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Accounting Policies and Basis of Presentation (Policies)

9 Months Ended

Sep. 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 August 2017, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2017-12 - “Derivatives and Hedging: Targeted Improvements to Accounting for Hedging Activities.” The purpose of this updated guidance is to better align a company’s financial reporting for hedging activities with the economic objectives of those activities. ASU 2017-12 is effective for public business entities for fiscal years beginning after December 15, 2018, with early adoption, including adoption in an interim period, permitted. Atlantic Capital plans to adopt ASU 2017-12 on January 1, 2018. The guidance requires a modified retrospective transition method resulting in the cumulative effect of the change on the opening balance of each affected component of equity in the statement of financial position as of the date of adoption. Atlantic Capital does not expect adoption to have a material impact on its consolidated financial statements.

In May 2017, the FASB issued 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, this ASU will not 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)

9 Months Ended

Sep. 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 September 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
September 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	$	5,189	$	—	$	5,189	$	(5,189	)	$	—		$	—
Derivatives	3,993		—		3,993		—			—			3,993
Total	$	9,182	$	—	$	9,182	$	(5,189	)	$	—		$	3,993
							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	4,184		—		4,184		(2,868		)	(1,316		)	—
Total	$	4,184	$	—	$	4,184	$	(2,868	)	$	(1,316	)	$	—
							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 September 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
September 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	$	5,189	$	—	$	5,189	$	(5,189	)	$	—		$	—
Derivatives	3,993		—		3,993		—			—			3,993
Total	$	9,182	$	—	$	9,182	$	(5,189	)	$	—		$	3,993
							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	4,184		—		4,184		(2,868		)	(1,316		)	—
Total	$	4,184	$	—	$	4,184	$	(2,868	)	$	(1,316	)	$	—
							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)

9 Months Ended

Sep. 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 September 30, 2017 and December 31, 2016.

Available-For-Sale	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
	(in thousands)
September 30, 2017
Debt securities—
U.S. Government agencies	$	34,961	$	108	$	(286	)	$	34,783
U.S. states and political divisions	96,813		339		(3,373		)	93,779
Trust preferred securities	4,747		—		(72		)	4,675
Corporate debt securities	16,700		115		(659		)	16,156
Residential mortgage-backed securities	296,978		3,147		(2,513		)	297,612
Total	$	450,199	$	3,709	$	(6,903	)	$	447,005
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 September 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	$	625	$	625
Over 1 year through 5 years	25,696		25,507
5 years to 10 years	53,041		52,506
Over 10 years	73,859		70,755
	153,221		149,393
Residential mortgage-backed securities	296,978		297,612
Total	$	450,199	$	447,005

Continuous Unrealized Loss Position, Fair Value

The following table summarizes available-for-sale securities in an unrealized loss position as of September 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)
September 30, 2017
U.S. Government agencies	$	22,309	$	(221	)	2,582		$	(65	)	$	24,891	$	(286	)
U.S. states and political divisions	39,864		(1,038		)	36,070		(2,335		)	75,934		(3,373		)
Trust preferred securities	—		—			4,675		(72		)	4,675		(72		)
Corporate debt securities	3,501		(41		)	5,895		(618		)	9,396		(659		)
Residential mortgage-backed securities	77,392		(759		)	89,130		(1,754		)	166,522		(2,513		)
Totals	$	143,066	$	(2,059	)	$	138,352	$	(4,844	)	$	281,418	$	(6,903	)
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 nine months endedSeptember 30, 2017 and 2016.

	Three Months Ended September 30,					Nine Months Ended September 30,
	2017			2016		2017			2016
	(in thousands)
Proceeds from sales	$	1,813		$	—	$	1,813		$	65,103
Gross realized gains	—			—		—			449
Gross realized losses	(80		)	—		(80		)	(405		)
Net gains on sales of securities	$	(80	)	$	—	$	(80	)	$	44

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Loans and Allowance for Loan Losses (Tables)

9 Months Ended

Sep. 30, 2017

Loans and Leases Receivable Disclosure [Abstract]

Schedule of Accounts, Notes, Loans and Financing Receivable

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

	September 30, 2017			December 31, 2016
	(in thousands)
Loans held for sale
Branch loans held for sale	$	—		$	30,917
Other loans held for sale	3,274			4,302
Total loans held for sale	$	3,274		$	35,219
Loans held for investment
Commercial loans:
Commercial and industrial	$	562,426		$	531,061
Commercial real estate	944,854			858,778
Construction and land	132,080			219,352
Mortgage warehouse participations	41,551			147,519
Total commercial loans	1,680,911			1,756,710
Residential:
Residential mortgages	101,976			101,921
Home equity	78,773			77,358
Total residential loans	180,749			179,279
Consumer	31,750			27,338
Other	16,106			21,565
Total loans	1,909,516			1,984,892
Less net deferred fees and other unearned income	(4,084		)	(3,562		)
Less allowance for loan losses	(18,870		)	(20,595		)
Loans held for investment, net	$	1,886,562		$	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 Nine Months Ended
	September 30, 2017			September 30, 2016			September 30, 2017			September 30, 2016
	(in thousands)
Balance at beginning of period	$	3,130		$	1,826		$	3,467		$	2,369
Additions due to acquisitions	—			—			—			—
Accretion	(427		)	(341		)	(1,206		)	(884		)
Reclassification of nonaccretable discount due to change in expected cash flows	(202		)	2,404			142			2,404
Other changes, net	281			295			379			295
Balance at end of period	$	2,782		$	4,184		$	2,782		$	4,184

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 nine months endedSeptember 30, 2017 and 2016.

	2017												2016
Three Months Ended September 30,	Commercial			Residential			Consumer			Total			Commercial			Residential			Consumer			Total
	(in thousands)
Allowance for loan losses:
Beginning balance	$	20,692		$	860		$	318		$	21,870		$	16,469		$	1,389		$	519		$	18,377
Provision for loan losses	273			55			(6		)	322			409			64			(10		)	463
Loans charged-off	(3,308		)	(31		)	(7		)	(3,346		)	(287		)	(9		)	(65		)	(361		)
Recoveries	16			—			8			24			34			7			14			55
Total ending allowance balance	$	17,673		$	884		$	313		$	18,870		$	16,625		$	1,451		$	458		$	18,534
	2017												2016
Nine Months Ended September 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	3,152			(451		)	235			2,936			1,934			(503		)	177			1,608
Loans charged-off	(4,221		)	(85		)	(396		)	(4,702		)	(1,897		)	(34		)	(249		)	(2,180		)
Recoveries	25			2			14			41			51			7			143			201
Total ending allowance balance	$	17,673		$	884		$	313		$	18,870		$	16,625		$	1,451		$	458		$	18,534

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 September 30, 2017 and December 31, 2016.

September 30, 2017	Commercial		Residential		Consumer		Total
	(in thousands)
Allowance for loan losses:
Ending allowance balance attributable to loans
Individually evaluated for impairment	$	490	$	—	$	—	$	490
Collectively evaluated for impairment	17,102		884		311		18,297
PCI	81		—		2		83
Total ending allowance balance	$	17,673	$	884	$	313	$	18,870
Loans:
Loans individually evaluated for impairment	$	9,049	$	719	$	—	$	9,768
Loans collectively evaluated for impairment	1,662,299		177,511		47,848		1,887,658
PCI	9,563		2,519		8		12,090
Total ending loans balance	$	1,680,911	$	180,749	$	47,856	$	1,909,516
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 nine months endedSeptember 30, 2017 and 2016:

	For the Three Months Ended September 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	$	2,424	$	2,361	$	—	$	2,287	$	14	$	3,118	$	3,057	$	—	$	3,028	$	40
Commercial real estate	1,946		1,783		—		1,889		—		—		—		—		—		—
Construction and land	—		—		—		—		—		—		—		—		—		—
Residential mortgages	236		190		—		191		—		—		—		—		—		—
Home equity	529		529		—		531		—		—		—		—		—		—
Mortgage warehouse	—		—		—		—		—		—		—		—		—		—
Consumer	—		—		—		—		—		—		—		—		—		—
Total	$	5,135	$	4,863	$	—	$	4,898	$	14	$	3,118	$	3,057	$	—	$	3,028	$	40
Impaired loans with an allowance recorded:
Commercial and industrial	$	4,333	$	4,333	$	356	$	4,375	$	49	$	4,461	$	4,461	$	481	$	4,461	$	—
Commercial real estate	572		572		134		576		6		1,132		1,132		205		1,132		—
Construction and land	—		—		—		—		—		—		—		—		—		—
Residential mortgages	—		—		—		—		—		406		406		65		406		—
Home equity	—		—		—		—		—		—		—		—		—		—
Mortgage warehouse	—		—		—		—		—		—		—		—		—		—
Consumer	—		—		—		—		—		—		—		—		—		—
Total	$	4,905	$	4,905	$	490	$	4,951	$	55	$	5,999	$	5,999	$	751	$	5,999	$	—
Total impaired loans	$	10,040	$	9,768	$	490	$	9,849	$	69	$	9,117	$	9,056	$	751	$	9,027	$	40

	For the Nine Months Ended September 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	$	2,424	$	2,361	$	—	$	2,717	$	42	$	3,118	$	3,057	$	—	$	2,960	$	112
Commercial real estate	1,946		1,783		—		1,925		1		—		—		—		—		—
Construction and land	—		—		—		—		—		—		—		—		—		—
Residential mortgages	236		190		—		221		—		—		—		—		—		—
Home equity	529		529		—		264		—		—		—		—		—		—
Mortgage warehouse	—		—		—		—		—		—		—		—		—		—
Consumer	—		—		—		—		—		—		—		—		—		—
Total	$	5,135	$	4,863	$	—	$	5,127	$	43	$	3,118	$	3,057	$	—	$	2,960	$	112
Impaired loans with an allowance recorded:
Commercial and industrial	$	4,333	$	4,333	$	356	$	4,454	$	149	$	4,461	$	4,461	$	481	$	4,461	$	—
Commercial real estate	572		572		134		581		19		1,132		1,132		205		1,132		—
Construction and land	—		—		—		—		—		—		—		—		—		—
Residential mortgages	—		—		—		—		—		406		406		65		406		—
Home equity	—		—		—		—		—		—		—		—		—		—
Mortgage warehouse	—		—		—		—		—		—		—		—		—		—
Consumer	—		—		—		—		—		—		—		—		—		—
Total	$	4,905	$	4,905	$	490	$	5,035	$	168	$	5,999	$	5,999	$	751	$	5,999	$	—
Total impaired loans	$	10,040	$	9,768	$	490	$	10,162	$	211	$	9,117	$	9,056	$	751	$	8,959	$	112

Troubled Debt Restructurings on Financing Receivables

As of September 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 Nonaccruing		Total
	(in thousands)
September 30, 2017
Commercial and industrial	$	515,388	$	13,362	$	27,179	$	996	$	5	$	556,930
Commercial real estate	925,588		9,730		4,037		133		1,631		941,119
Construction and land	127,005		4,721		—		22		—		131,748
Residential mortgages	97,685		1,365		714		248		328		100,340
Home equity	76,685		41		469		695		—		77,890
Mortgage warehouse	41,551		—		—		—		—		41,551
Consumer/Other	47,594		60		194		—		—		47,848
Total loans, excluding PCI loans	$	1,831,496	$	29,279	$	32,593	$	2,094	$	1,964	$	1,897,426
Commercial and industrial	$	—	$	4,781	$	715	$	—	$	—	$	5,496
Commercial real estate	3,091		233		295		—		116		3,735
Construction and land	298		7		27		—		—		332
Residential mortgages	396		540		700		—		—		1,636
Home equity	105		475		303		—		—		883
Mortgage warehouse	—		—		—		—		—		—
Consumer/Other	1		1		6		—		—		8
Total PCI loans	$	3,891	$	6,037	$	2,046	$	—	$	116	$	12,090

	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 September 30, 2017 and December 31, 2016 by class of loans.

	As of September 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	$	548,425	$	7,379	$	125	$	1,001	$	5,496	$	562,426
Commercial real estate	936,836		2,519		—		1,764		3,735		944,854
Construction and land	131,328		398		—		22		332		132,080
Residential mortgages	98,308		1,258		198		576		1,636		101,976
Home equity	76,951		244		—		695		883		78,773
Mortgage warehouse	41,551		—		—		—		—		41,551
Consumer	47,676		—		172		—		8		47,856
Total Loans	$	1,881,075	$	11,798	$	495	$	4,058	$	12,090	$	1,909,516

	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)

9 Months Ended

Sep. 30, 2017

Goodwill and Intangible Assets Disclosure [Abstract]

Schedule of Intangible Assets and Goodwill

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

	September 30,			December 31,
	2017			2016
	(in thousands)
Core deposit intangible	$	9,544		$	9,544
Less: accumulated amortization	(4,257		)	(2,971		)
Less: impairment related to divested branches	(2,286		)	(1,949		)
Core deposit intangible, net	3,001			4,624
Servicing assets, net	3,185			3,184
Total other intangibles, net	6,186			7,808
Goodwill	21,759			21,759
Total goodwill and other intangible assets, net	$	27,945		$	29,567

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

	For the Three Months Ended September 30,									For the Nine Months Ended September 30,
	Goodwill			Core Deposit Intangible			Total			Goodwill			Core Deposit Intangible			Total
	(in thousands)
2017
Balance, beginning of period	$	21,759		$	3,392		$	25,151		$	21,759		$	4,624		$	26,383
Amortization	—			(391		)	(391		)	—			(1,286		)	(1,286		)
Impairment, due to branch divestiture	—			—			—			—			(337		)	(337		)
Balance, end of period	$	21,759		$	3,001		$	24,760		$	21,759		$	3,001		$	24,760
2016
Balance, beginning of period	$	22,446		$	5,639		$	28,085		$	23,352		$	9,018		$	32,370
Amortization	—			(520		)	(520		)	—			(1,950		)	(1,950		)
Impairment, due to branch divestiture	—			—			—			—			(1,949		)	(1,949		)
Measurement period adjustments	(687		)	—			(687		)	(1,593		)	—			(1,593		)
Balance, end of period	$	21,759		$	5,119		$	26,878		$	21,759		$	5,119		$	26,878

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Servicing Assets (Tables)

9 Months Ended

Sep. 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 nine months endedSeptember 30, 2017 and 2016 are presented in the following table.

	Three months ended September 30,						Nine months ended September 30,
TriNet Servicing Assets	2017			2016			2017			2016
	(in thousands)
Beginning carrying value, net	$	731		$	1,471		$	825		$	1,175
Additions	—			—			—			406
Amortization	(46		)	(47		)	(140		)	(157		)
Impairment	—			(551		)	—			(551		)
Ending carrying value	$	685		$	873		$	685		$	873

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

	Three months ended September 30,						Nine months ended September 30,
SBA Loan Servicing Assets	2017			2016			2017			2016
	(in thousands)
Beginning carrying value, net	$	2,564		$	2,117		$	2,359		$	1,687
Additions	157			328			750			889
Amortization	(221		)	(125		)	(609		)	(256		)
Impairment	—			—			—			—
Ending carrying value	$	2,500		$	2,320		$	2,500		$	2,320

Schedule of Sensitivity to Immediate Changes in Key Economic Assumptions

At September 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	September 30, 2017				December 31, 2016
	(dollars in thousands)
Fair value of retained servicing assets	$	2,771			$	2,474
Weighted average life	6.62 years				6.52 years
Prepayment speed:	7.66			%	7.67			%
Decline in fair value due to a 10% adverse change	$	(108	)		$	(89	)
Decline in fair value due to a 20% adverse change	$	(183	)		$	(151	)
Weighted average discount rate	12.56			%	12.27			%
Decline in fair value due to a 100 bps adverse change	$	(117	)		$	(97	)
Decline in fair value due to a 200 bps adverse change	$	(200	)		$	(168	)

At September 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	September 30, 2017				December 31, 2016
	(dollars in thousands)
Fair value of retained servicing assets	$	761			$	840
Weighted average life	8.25 years				8.47 years
Prepayment speed:	5.00			%	5.00			%
Decline in fair value due to a 10% adverse change	$	(11	)		$	(12	)
Decline in fair value due to a 20% adverse change	$	(22	)		$	(24	)
Weighted average discount rate	8.00			%	8.00			%
Decline in fair value due to a 100 bps adverse change	$	(21	)		$	(25	)
Decline in fair value due to a 200 bps adverse change	$	(41	)		$	(49	)

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Other Comprehensive Income (Loss) (Tables)

9 Months Ended

Sep. 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 Nine Months Ended
	September 30, 2017									September 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	$	(3,690	)	$	1,420		$	(2,270	)	$	(9,144	)	$	3,519		$	(5,625	)
Unrealized net gains (losses) on investment securities available-for-sale	706			(272		)	434			6,366			(2,450		)	3,916
Reclassification adjustment for net realized losses on investment securities available-for-sale	80			(31		)	49			80			(31		)	49
Unrealized net gains (losses) on derivatives	(121		)	46			(75		)	(327		)	125			(202		)
Accumulated other comprehensive income (loss) end of period	$	(3,025	)	$	1,163		$	(1,862	)	$	(3,025	)	$	1,163		$	(1,862	)

	For the Three Months Ended									For the Nine Months Ended
	September 30, 2016									September 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	$	5,691		$	(2,197	)	$	3,494		$	(2,455	)	$	939		$	(1,516	)
Unrealized net gains (losses) on investment securities available-for-sale	(853		)	329			(524		)	6,125			(2,354		)	3,771
Reclassification adjustment for net realized gains on investment securities available-for-sale	—			—			—			(44		)	17			(27		)
Unrealized net gains (losses) on derivatives	(438		)	169			(269		)	774			(301		)	473
Accumulated other comprehensive income (loss) end of period	$	4,400		$	(1,699	)	$	2,701		$	4,400		$	(1,699	)	$	2,701

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Earnings Per Common Share (Tables)

9 Months Ended

Sep. 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 nine months endedSeptember 30, 2017 and 2016.

	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2017		2016		2017		2016
(in thousands, except share and per share amounts)
Net income available to common shareholders	$	4,052	$	3,708	$	11,611	$	11,786
Weighted average shares outstanding
Basic (1)	25,699,179		24,891,822		25,548,646		24,674,953
Effect of dilutive securities:
Stock options and warrants	191,600		368,458		251,205		431,297
Diluted	25,890,779		25,260,280		25,799,851		25,106,250
Income per common share:
Basic	$	0.16	$	0.15	$	0.45	$	0.48
Diluted	$	0.16	$	0.15	$	0.45	$	0.47
(1) Unvested restricted shares are participating securities and included in basic share calculations.

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Derivatives and Hedging (Tables)

9 Months Ended

Sep. 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 September 30, 2017 and December 31, 2016:

Derivatives designated as hedging instruments under ASC 815
(in thousands)		September 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	$	—	$	—	$	50,000	$	186
Cash flow hedge of LIBOR based loans	Other liabilities	$	75,000	$	56	$	—	$	—
Derivatives not designated as hedging instruments under ASC 815
(in thousands)		September 30, 2017				December 31, 2016
Interest Rate Products	Balance Sheet Location	Notional Amount		Fair Value		Notional Amount		Fair Value
Customer swap positions	Other assets	$	69,543	$	1,168	$	70,352	$	1,364
Zero premium collar	Other assets	95,688		2,825		98,697		2,760
		$	165,231	$	3,993	$	169,049	$	4,124
Dealer offsets to customer swap positions	Other liabilities	$	69,543	$	1,214	$	70,352	$	1,371
Credit risk participation	Other liabilities	15,556		6		4,460		—
Dealer offset to zero premium collar	Other liabilities	95,688		2,908		98,697		2,760
		$	180,787	$	4,128	$	173,509	$	4,131

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

Derivatives in Cash Flow Hedging Relationships
	Three Months Ended September 30,											Nine Months Ended September 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	$	(75	)	$	(269	)	Interest income	$	84	$	177	$	(202	)	$	473	Interest income	$	331	$	546

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Other Borrowings and Long Term Debt (Tables)

9 Months Ended

Sep. 30, 2017

Debt Disclosure [Abstract]

Schedule of Long-term Debt Instruments and Borrowings

Subordinated debt is summarized as follows.

	September 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		507		634
Subordinated debt, net	$	49,493	$	49,366

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

	September 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 October 3, 2017	40,000		1.16	%	Fixed rate advance maturing January 17, 2017	40,000		0.64	%
Fixed rate advance maturing October 11, 2017	40,000		1.15	%	Fixed rate advance maturing January 24, 2017	40,000		0.61	%
Fixed rate advance maturing October 13, 2017	45,000		1.16	%	Fixed rate advance maturing January 30, 2017	30,000		0.62	%
Total	$	125,000			Total	$	110,000

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Share-Based Compensation (Tables)

9 Months Ended

Sep. 30, 2017

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

Schedule of Share-based Compensation, Fair Value of Options Assumptions

The table below summarizes the assumptions used to calculate the fair value of options granted/modified during 2017:

	2017
Risk‑free interest rate	1.00-1.99%
Expected term in years	.25-8
Expected stock price volatility	23.2-25.3%
Dividend yield	—	%

Schedule of Share-based Compensation, Stock Options and Warrants Activity

The following table represents stock option and warrant activity for the nine months endedSeptember 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
Granted	30,400		12.39
Exercised	(718,912	)	10.53
Forfeited	(32,846	)	12.28
Expired	(635	)	126.22
Outstanding, September 30, 2017	763,711		$	12.64	5.77	$	4,348
Exercisable, September 30, 2017	518,336		$	11.73	4.77	$	3,466

Schedule of Share-based Compensation, Restricted Stock Award Activity

The following table represents restricted stock activity for the nine months endedSeptember 30, 2017:

	Shares		Weighted Average Grant-Date Fair Value
Outstanding, December 31, 2016	259,165		$	13.70
Granted	110,293		17.85
Vested	(64,637	)	12.73
Forfeited	(36,674	)	14.88
Outstanding, September 30, 2017	268,147		$	15.47

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Fair Value Measurements (Tables)

9 Months Ended

Sep. 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 September 30, 2017 and December 31, 2016.

	Fair Value Measurements at
	September 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	$	—	$	34,783	$	—	$	34,783
U.S. states and political subdivisions	—		93,779		—		93,779
Trust preferred securities	—		4,675		—		4,675
Corporate debt securities	—		16,156		—		16,156
Mortgage-backed securities	—		297,612		—		297,612
Total securities available-for-sale	$	—	$	447,005	$	—	$	447,005
Interest rate derivative assets	$	—	$	3,993	$	—	$	3,993
Interest rate derivative liabilities	$	—	$	4,184	$	—	$	4,184

	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 September 30, 2017 and December 31, 2016.

September 30, 2017		Level 1 Fair Value Measurement		Level 2 Fair Value Measurement		Level 3 Fair Value Measurement		Total
	(in thousands)
Impaired Loans		$	—	$	—	$	2,970	$	2,970

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 September 30, 2017 and December 31, 2016.

	Fair Value Measurements at
	September 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	$	35,504	$	35,504	$	—	$	—
Interest bearing deposits in banks	40,558		40,558		—		—
Other short-term investments	5,189		5,189		—		—
Total securities available-for-sale	447,005		—		447,005		—
FHLB stock	7,788		—		—		7,788
Federal Reserve Bank stock	9,781		—		—		9,781
Loans held for investment, net	1,886,562		—		—		1,927,726
Loans held for sale	3,274		—		3,274		—
Derivative assets	3,993		—		3,993		—
Financial liabilities
Deposits	$	2,103,645	$	—	$	2,019,911	$	—
Subordinated debt	49,493		—		49,871		—
FHLB advances	125,000		—		125,007		—
Derivative financial instruments	4,184		—		4,184		—

	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)

9 Months Ended

Sep. 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 September 30, 2017 and December 31, 2016 was as follows:

	September 30, 2017		December 31, 2016
	(in thousands)
Financial Instruments whose contract amount represents credit risk:
Commitments to extend credit	$	686,685	$	617,432
Standby letters of credit	13,677		16,625
	$	700,362	$	634,057

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Acquisitions and Divestitures (Details) $ in Thousands			3 Months Ended				9 Months Ended
	Dec. 09, 2016 USD ($) branch	Dec. 17, 2015 USD ($) branch agreement	Sep. 30, 2017 USD ($)	Jun. 30, 2017 USD ($)	Sep. 30, 2016 USD ($)	Jun. 30, 2016 USD ($)	Sep. 30, 2017 USD ($)	Sep. 30, 2016 USD ($)	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)					(111,371)	116,885
Decrease in loans		(34,700)
Decrease in other assets		(8,600)
Write-off for intangibles	337	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			$ 0		$ 579		$ 304	$ 2,500
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	Sep. 30, 2017	Dec. 31, 2016
Offsetting Securities Purchased under Agreements to Resell [Abstract]
Reverse repurchase agreements, Gross amounts of recognized assets	$ 5,189	$ 10,896
Reverse repurchase agreements, Gross amounts offset on the Balance Sheet	0	0
Reversed repurchase agreements, Net asset balance	5,189	10,896
Reverse repurchase agreements, Financial instruments	(5,189)	(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	3,993	4,310
Derivatives, Gross amounts offset on the Balance Sheet	0	0
Derivatives, Net asset balance	3,993	4,310
Derivatives, Financial instruments	0	0
Derivatives, Cash collateral received	0	0
Derivatives, Net amount	3,993	4,310
Offsetting Derivative Asset, Securities Purchased under Agreements to Resell, Securities Borrowed [Abstract]
Total, Gross amounts of recognized assets	9,182	15,206
Total, Gross amounts offset on the Balance Sheet	0	0
Total, Net asset balance	9,182	15,206
Total, Financial instruments	(5,189)	(10,896)
Total, Cash Cash collateral received	0	0
Total, Net amount	3,993	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	4,184	4,131
Derivatives, Gross amounts offset on the Balance Sheet	0	0
Derivative, Net liability balance	4,184	4,131
Derivatives, Financial instruments	(2,868)	(1,818)
Derivatives, Cash collateral pledged	(1,316)	(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	4,184	4,131
Total, Gross amounts offset on the Balance Sheet	0	0
Total, Net liability balance	4,184	4,131
Total, Financial instruments	(2,868)	(1,818)
Total, Cash collateral pledged	(1,316)	(2,313)
Total, Net amount	$ 0	$ 0

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Securities (Securities Available-For-Sale) (Details) - USD ($) $ in Thousands	Sep. 30, 2017	Dec. 31, 2016
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	$ 450,199	$ 357,345
Gross Unrealized Gains	3,709	2,926
Gross Unrealized Losses	(6,903)	(12,566)
Fair Value	447,005	347,705
U.S. Government agencies
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	34,961	21,485
Gross Unrealized Gains	108	24
Gross Unrealized Losses	(286)	(357)
Fair Value	34,783	21,152
U.S. states and political subdivisions
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	96,813	96,908
Gross Unrealized Gains	339	141
Gross Unrealized Losses	(3,373)	(6,877)
Fair Value	93,779	90,172
Trust preferred securities
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	4,747	4,727
Gross Unrealized Gains	0	0
Gross Unrealized Losses	(72)	(202)
Fair Value	4,675	4,525
Corporate debt securities
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	16,700	19,928
Gross Unrealized Gains	115	72
Gross Unrealized Losses	(659)	(769)
Fair Value	16,156	19,231
Residential mortgage-backed securities
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	296,978	214,297
Gross Unrealized Gains	3,147	2,689
Gross Unrealized Losses	(2,513)	(4,361)
Fair Value	$ 297,612	$ 212,625

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Securities (Maturities) (Details) - USD ($) $ in Thousands	Sep. 30, 2017	Dec. 31, 2016
Amortized Cost
Within 1 year	$ 625
Over 1 year through 5 years	25,696
5 years to 10 years	53,041
Over 10 years	73,859
Total with Single Maturity Date	153,221
Residential mortgage-backed securities	296,978
Total	450,199
Fair Value
Within 1 year	625
Over 1 year through 5 years	25,507
5 years to 10 years	52,506
Over 10 years	70,755
Total with Single Maturity Date	149,393
Residential mortgage-backed securities	297,612
Total	$ 447,005	$ 347,705

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Securities (Unrealized Losses - Available-For-Sale) (Details) - USD ($) $ in Thousands	Sep. 30, 2017	Dec. 31, 2016
Continuous Unrealized Loss Position, Fair Value [Abstract]
Less than 12 months, fair value	$ 143,066	$ 259,053
12 months or greater, fair value	138,352	39,956
Total fair value	281,418	299,009
Continuous Unrealized Loss Position, Unrealized Losses [Abstract]
Less than 12 months, unrealized losses	(2,059)	(11,140)
12 months or greater, unrealized losses	(4,844)	(1,426)
Total unrealized losses	(6,903)	(12,566)
U.S. Government agencies
Continuous Unrealized Loss Position, Fair Value [Abstract]
Less than 12 months, fair value	22,309	12,250
12 months or greater, fair value	2,582	2,881
Total fair value	24,891	15,131
Continuous Unrealized Loss Position, Unrealized Losses [Abstract]
Less than 12 months, unrealized losses	(221)	(263)
12 months or greater, unrealized losses	(65)	(94)
Total unrealized losses	(286)	(357)
U.S. states and political divisions
Continuous Unrealized Loss Position, Fair Value [Abstract]
Less than 12 months, fair value	39,864	87,511
12 months or greater, fair value	36,070	0
Total fair value	75,934	87,511
Continuous Unrealized Loss Position, Unrealized Losses [Abstract]
Less than 12 months, unrealized losses	(1,038)	(6,877)
12 months or greater, unrealized losses	(2,335)	0
Total unrealized losses	(3,373)	(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	4,675	4,525
Total fair value	4,675	4,525
Continuous Unrealized Loss Position, Unrealized Losses [Abstract]
Less than 12 months, unrealized losses	0	0
12 months or greater, unrealized losses	(72)	(202)
Total unrealized losses	(72)	(202)
Corporate debt securities
Continuous Unrealized Loss Position, Fair Value [Abstract]
Less than 12 months, fair value	3,501	7,886
12 months or greater, fair value	5,895	0
Total fair value	9,396	7,886
Continuous Unrealized Loss Position, Unrealized Losses [Abstract]
Less than 12 months, unrealized losses	(41)	(769)
12 months or greater, unrealized losses	(618)	0
Total unrealized losses	(659)	(769)
Residential mortgage-backed securities
Continuous Unrealized Loss Position, Fair Value [Abstract]
Less than 12 months, fair value	77,392	151,406
12 months or greater, fair value	89,130	32,550
Total fair value	166,522	183,956
Continuous Unrealized Loss Position, Unrealized Losses [Abstract]
Less than 12 months, unrealized losses	(759)	(3,231)
12 months or greater, unrealized losses	(1,754)	(1,130)
Total unrealized losses	$ (2,513)	$ (4,361)

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Securities (Narrative) (Details)	3 Months Ended		9 Months Ended
	Sep. 30, 2017 USD ($) security	Sep. 30, 2016 USD ($)	Sep. 30, 2017 USD ($) security	Sep. 30, 2016 USD ($)	Dec. 31, 2016 USD ($)
Investments, Debt and Equity Securities [Abstract]
Available-for-sale securities in unrealized loss positions (security) | security	245		245
Impairment charges	$ 0	$ 0	$ 0	$ 0
Investment securities pledged to secure borrowings	$ 100,000,000		$ 100,000,000		$ 104,900,000

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Securities (Sales) (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Investments, Debt and Equity Securities [Abstract]
Proceeds from sales	$ 1,813	$ 0	$ 1,813	$ 65,103
Gross realized gains	0	0	0	449
Gross realized losses	(80)	0	(80)	(405)
Net gains on sales of securities	$ (80)	$ 0	$ (80)	$ 44

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Loans and Allowance for Loan Losses (Summary of Loans) (Details) - USD ($) $ in Thousands	Sep. 30, 2017	Jun. 30, 2017	Dec. 31, 2016	Sep. 30, 2016	Jun. 30, 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	3,274		4,302
Total loans held for sale	3,274		35,219
Loans	1,909,516		1,984,892
Less net deferred fees and other unearned income	(4,084)		(3,562)
Less allowance for loan losses	(18,870)	$ (21,870)	(20,595)	$ (18,534)	$ (18,377)	$ (18,905)
Loans held for investment, net	1,886,562		1,960,735
Residential mortgages
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans	101,976		101,921
Home equity
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans	78,773		77,358
Other
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans	16,106		21,565
Commercial
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans	1,680,911		1,756,710
Less allowance for loan losses	(17,673)	(20,692)	(18,717)	(16,625)	(16,469)	(16,537)
Commercial | Commercial and industrial
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans	562,426		531,061
Commercial | Commercial real estate
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans	944,854		858,778
Commercial | Construction and land
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans	132,080		219,352
Commercial | Mortgage warehouse participations
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans	41,551		147,519
Residential
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans	180,749		179,279
Less allowance for loan losses	(884)	(860)	(1,418)	(1,451)	(1,389)	(1,981)
Consumer
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans	31,750		27,338
Less allowance for loan losses	$ (313)	$ (318)	$ (460)	$ (458)	$ (519)	$ (387)

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Loans and Allowance for Loan Losses (Narrative) (Details) $ in Thousands	3 Months Ended	9 Months Ended
	Sep. 30, 2016 contract	Sep. 30, 2017 USD ($) contract	Sep. 30, 2016 contract	Dec. 31, 2016 USD ($)
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans pledged as collateral		$ 473,500		$ 474,800
Carrying value of loans		1,909,516		1,984,892
Accretable yield		3,100		3,900
Troubled debt restructurings		7,100		6,600
PCI Loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Carrying value of loans		12,090		15,253
Loans receivable		14,600		18,700
Commercial and industrial | PCI Loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Carrying value of loans		5,496		6,411
Commercial
Accounts, Notes, Loans and Financing Receivable [Line Items]
Carrying value of loans		1,680,911		1,756,710
Commercial | Commercial real estate
Accounts, Notes, Loans and Financing Receivable [Line Items]
Additional loan amounts		34		387
Number of contracts modified | contract	2		2
Reclassification of maturity date term	6 months		6 months
Commercial | Commercial and industrial
Accounts, Notes, Loans and Financing Receivable [Line Items]
Carrying value of loans		562,426		531,061
Loan amount reclassification		980
Number of contracts modified | contract	1		1
Reclassification of maturity date term	2 years		2 years
Residential
Accounts, Notes, Loans and Financing Receivable [Line Items]
Carrying value of loans		180,749		179,279
Residential | Home equity
Accounts, Notes, Loans and Financing Receivable [Line Items]
Carrying value of loans		$ 78,773		77,358
Number of contracts modified | contract		1
Residential | Home equity | PCI Loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Carrying value of loans		$ 883		$ 1,762

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Loans and Allowance for Loan Losses (Accretable Yield Movement) (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Accretable Yield Movement Schedule [Roll Forward]
Balance at beginning of period	$ 3,130	$ 1,826	$ 3,467	$ 2,369
Additions due to acquisitions	0	0	0	0
Accretion	(427)	(341)	(1,206)	(884)
Reclassification of nonaccretable discount due to change in expected cash flows	(202)	2,404	142	2,404
Other changes, net	281	295	379	295
Balance at end of period	$ 2,782	$ 4,184	$ 2,782	$ 4,184

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Loans and Allowance for Loan Losses (Allowance Rollforward) (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Allowance for Loan and Lease Losses [Roll Forward]
Beginning balance	$ 21,870	$ 18,377	$ 20,595	$ 18,905
Provision for loan losses	322	463	2,936	1,608
Loans charged-off	(3,346)	(361)	(4,702)	(2,180)
Recoveries	24	55	41	201
Total ending allowance balance	18,870	18,534	18,870	18,534
Commercial
Allowance for Loan and Lease Losses [Roll Forward]
Beginning balance	20,692	16,469	18,717	16,537
Provision for loan losses	273	409	3,152	1,934
Loans charged-off	(3,308)	(287)	(4,221)	(1,897)
Recoveries	16	34	25	51
Total ending allowance balance	17,673	16,625	17,673	16,625
Residential
Allowance for Loan and Lease Losses [Roll Forward]
Beginning balance	860	1,389	1,418	1,981
Provision for loan losses	55	64	(451)	(503)
Loans charged-off	(31)	(9)	(85)	(34)
Recoveries	0	7	2	7
Total ending allowance balance	884	1,451	884	1,451
Consumer
Allowance for Loan and Lease Losses [Roll Forward]
Beginning balance	318	519	460	387
Provision for loan losses	(6)	(10)	235	177
Loans charged-off	(7)	(65)	(396)	(249)
Recoveries	8	14	14	143
Total ending allowance balance	$ 313	$ 458	$ 313	$ 458

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Loans and Allowance for Loan Losses (Allowance Additional Information) (Details) - USD ($) $ in Thousands	Sep. 30, 2017	Dec. 31, 2016
Financing Receivable, Allowance for Credit Losses [Line Items]
Allowance for loan losses, Individually evaluated for impairment	$ 490	$ 2,684
Allowance for loan losses, Collectively evaluated for impairment	18,297	17,837
Allowance for loan losses, PCI	83	74
Allowance for loan losses, Total ending allowance balance	18,870	20,595
Loans, Individually evaluated for impairment	9,768	14,085
Loans, Collectively evaluated for impairment	1,887,658	1,955,554
Loans, PCI	12,090	15,253
Loans, Total ending allowance balance	1,909,516	1,984,892
Commercial
Financing Receivable, Allowance for Credit Losses [Line Items]
Allowance for loan losses, Individually evaluated for impairment	490	2,626
Allowance for loan losses, Collectively evaluated for impairment	17,102	16,018
Allowance for loan losses, PCI	81	73
Allowance for loan losses, Total ending allowance balance	17,673	18,717
Loans, Individually evaluated for impairment	9,049	13,687
Loans, Collectively evaluated for impairment	1,662,299	1,732,324
Loans, PCI	9,563	10,699
Loans, Total ending allowance balance	1,680,911	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	884	1,360
Allowance for loan losses, PCI	0	0
Allowance for loan losses, Total ending allowance balance	884	1,418
Loans, Individually evaluated for impairment	719	398
Loans, Collectively evaluated for impairment	177,511	174,338
Loans, PCI	2,519	4,543
Loans, Total ending allowance balance	180,749	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	311	459
Allowance for loan losses, PCI	2	1
Allowance for loan losses, Total ending allowance balance	313	460
Loans, Individually evaluated for impairment	0	0
Loans, Collectively evaluated for impairment	47,848	48,892
Loans, PCI	8	11
Loans, Total ending allowance balance	$ 47,856	$ 48,903

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Loans and Allowance for Loan Losses (Impaired Loans) (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Impaired Financing Receivable, Unpaid Principal Balance [Abstract]
Impaired loans with no related allowance recorded, Unpaid principal balance	$ 5,135	$ 3,118	$ 5,135	$ 3,118
Impaired loans with an allowance recorded, Unpaid principal balance	4,905	5,999	4,905	5,999
Total impaired loans, Unpaid principal balance	10,040	9,117	10,040	9,117
Impaired Financing Receivable, Recorded Investment [Abstract]
Impaired loans with no related allowance recorded, Recorded investment	4,863	3,057	4,863	3,057
Impaired loans with an allowance recorded, Recorded investment	4,905	5,999	4,905	5,999
Total impaired loans, Recorded investment	9,768	9,056	9,768	9,056
Impaired loans with an allowance recorded, Related allowance	490	751	490	751
Impaired Financing Receivable, Average Recorded Investment [Abstract]
Impaired loans with no related allowance recorded, Average balance of recorded investment while impaired	4,898	3,028	5,127	2,960
Impaired loans with an allowance recorded, Average balance of recorded investment while impaired	4,951	5,999	5,035	5,999
Total impaired loans, Average balance of recorded investment while impaired	9,849	9,027	10,162	8,959
Impaired Financing Receivable, Interest Income, Accrual Method [Abstract]
Impaired loans with no related allowance recorded, Interest income recognized during impairment	14	40	43	112
Impaired loans with an allowance recorded, Interest income recognized during impairment	55	0	168	0
Total impaired loans, Interest income recognized during impairment	69	40	211	112
Commercial | Commercial and industrial
Impaired Financing Receivable, Unpaid Principal Balance [Abstract]
Impaired loans with no related allowance recorded, Unpaid principal balance	2,424	3,118	2,424	3,118
Impaired loans with an allowance recorded, Unpaid principal balance	4,333	4,461	4,333	4,461
Impaired Financing Receivable, Recorded Investment [Abstract]
Impaired loans with no related allowance recorded, Recorded investment	2,361	3,057	2,361	3,057
Impaired loans with an allowance recorded, Recorded investment	4,333	4,461	4,333	4,461
Impaired loans with an allowance recorded, Related allowance	356	481	356	481
Impaired Financing Receivable, Average Recorded Investment [Abstract]
Impaired loans with no related allowance recorded, Average balance of recorded investment while impaired	2,287	3,028	2,717	2,960
Impaired loans with an allowance recorded, Average balance of recorded investment while impaired	4,375	4,461	4,454	4,461
Impaired Financing Receivable, Interest Income, Accrual Method [Abstract]
Impaired loans with no related allowance recorded, Interest income recognized during impairment	14	40	42	112
Impaired loans with an allowance recorded, Interest income recognized during impairment	49	0	149	0
Commercial | Commercial real estate
Impaired Financing Receivable, Unpaid Principal Balance [Abstract]
Impaired loans with no related allowance recorded, Unpaid principal balance	1,946	0	1,946	0
Impaired loans with an allowance recorded, Unpaid principal balance	572	1,132	572	1,132
Impaired Financing Receivable, Recorded Investment [Abstract]
Impaired loans with no related allowance recorded, Recorded investment	1,783	0	1,783	0
Impaired loans with an allowance recorded, Recorded investment	572	1,132	572	1,132
Impaired loans with an allowance recorded, Related allowance	134	205	134	205
Impaired Financing Receivable, Average Recorded Investment [Abstract]
Impaired loans with no related allowance recorded, Average balance of recorded investment while impaired	1,889	0	1,925	0
Impaired loans with an allowance recorded, Average balance of recorded investment while impaired	576	1,132	581	1,132
Impaired Financing Receivable, Interest Income, Accrual Method [Abstract]
Impaired loans with no related allowance recorded, Interest income recognized during impairment	0	0	1	0
Impaired loans with an allowance recorded, Interest income recognized during impairment	6	0	19	0
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	236	0	236	0
Impaired loans with an allowance recorded, Unpaid principal balance	0	406	0	406
Impaired Financing Receivable, Recorded Investment [Abstract]
Impaired loans with no related allowance recorded, Recorded investment	190	0	190	0
Impaired loans with an allowance recorded, Recorded investment	0	406	0	406
Impaired loans with an allowance recorded, Related allowance	0	65	0	65
Impaired Financing Receivable, Average Recorded Investment [Abstract]
Impaired loans with no related allowance recorded, Average balance of recorded investment while impaired	191	0	221	0
Impaired loans with an allowance recorded, Average balance of recorded investment while impaired	0	406	0	406
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	529	0	529	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	529	0	529	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	531	0	264	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	Sep. 30, 2017	Dec. 31, 2016
Financing Receivable, Impaired [Line Items]
Financing receivable, gross	$ 1,909,516	$ 1,984,892
Non-PCI Loans
Financing Receivable, Impaired [Line Items]
Financing receivable, gross	1,897,426	1,969,639
Non-PCI Loans | Pass
Financing Receivable, Impaired [Line Items]
Financing receivable, gross	1,831,496	1,921,412
Non-PCI Loans | Special Mention
Financing Receivable, Impaired [Line Items]
Financing receivable, gross	29,279	14,406
Non-PCI Loans | Substandard | Accruing Loans
Financing Receivable, Impaired [Line Items]
Financing receivable, gross	32,593	33,200
Non-PCI Loans | Substandard | Nonaccruing Loans
Financing Receivable, Impaired [Line Items]
Financing receivable, gross	2,094	150
Non-PCI Loans | Doubtful Nonaccruing | Nonaccruing Loans
Financing Receivable, Impaired [Line Items]
Financing receivable, gross	1,964	471
PCI Loans
Financing Receivable, Impaired [Line Items]
Financing receivable, gross	12,090	15,253
PCI Loans | Commercial and industrial
Financing Receivable, Impaired [Line Items]
Financing receivable, gross	5,496	6,411
PCI Loans | Commercial real estate
Financing Receivable, Impaired [Line Items]
Financing receivable, gross	3,735	3,770
PCI Loans | Construction and land
Financing Receivable, Impaired [Line Items]
Financing receivable, gross	332	518
PCI Loans | Pass
Financing Receivable, Impaired [Line Items]
Financing receivable, gross	3,891	5,780
PCI Loans | Pass | Commercial and industrial
Financing Receivable, Impaired [Line Items]
Financing receivable, gross	0	4,650
PCI Loans | Pass | Commercial real estate
Financing Receivable, Impaired [Line Items]
Financing receivable, gross	3,091	477
PCI Loans | Pass | Construction and land
Financing Receivable, Impaired [Line Items]
Financing receivable, gross	298	229
PCI Loans | Special Mention
Financing Receivable, Impaired [Line Items]
Financing receivable, gross	6,037	2,613
PCI Loans | Special Mention | Commercial and industrial
Financing Receivable, Impaired [Line Items]
Financing receivable, gross	4,781	299
PCI Loans | Special Mention | Commercial real estate
Financing Receivable, Impaired [Line Items]
Financing receivable, gross	233	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	2,046	5,201
PCI Loans | Substandard | Accruing Loans | Commercial and industrial
Financing Receivable, Impaired [Line Items]
Financing receivable, gross	715	614
PCI Loans | Substandard | Accruing Loans | Commercial real estate
Financing Receivable, Impaired [Line Items]
Financing receivable, gross	295	2,716
PCI Loans | Substandard | Accruing Loans | Construction and land
Financing Receivable, Impaired [Line Items]
Financing receivable, gross	27	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 | Nonaccruing Loans
Financing Receivable, Impaired [Line Items]
Financing receivable, gross	116	1,659
PCI Loans | Doubtful Nonaccruing | Nonaccruing Loans | Commercial and industrial
Financing Receivable, Impaired [Line Items]
Financing receivable, gross	0	848
PCI Loans | Doubtful Nonaccruing | Nonaccruing Loans | Commercial real estate
Financing Receivable, Impaired [Line Items]
Financing receivable, gross	116	337
PCI Loans | Doubtful Nonaccruing | Nonaccruing Loans | Construction and land
Financing Receivable, Impaired [Line Items]
Financing receivable, gross	0	0
Commercial
Financing Receivable, Impaired [Line Items]
Financing receivable, gross	1,680,911	1,756,710
Commercial | Commercial and industrial
Financing Receivable, Impaired [Line Items]
Financing receivable, gross	562,426	531,061
Commercial | Commercial real estate
Financing Receivable, Impaired [Line Items]
Financing receivable, gross	944,854	858,778
Commercial | Construction and land
Financing Receivable, Impaired [Line Items]
Financing receivable, gross	132,080	219,352
Commercial | Mortgage warehouse participations
Financing Receivable, Impaired [Line Items]
Financing receivable, gross	41,551	147,519
Commercial | Non-PCI Loans | Commercial and industrial
Financing Receivable, Impaired [Line Items]
Financing receivable, gross	556,930	524,650
Commercial | Non-PCI Loans | Commercial real estate
Financing Receivable, Impaired [Line Items]
Financing receivable, gross	941,119	855,008
Commercial | Non-PCI Loans | Construction and land
Financing Receivable, Impaired [Line Items]
Financing receivable, gross	131,748	218,834
Commercial | Non-PCI Loans | Mortgage warehouse participations
Financing Receivable, Impaired [Line Items]
Financing receivable, gross	41,551	147,519
Commercial | Non-PCI Loans | Pass | Commercial and industrial
Financing Receivable, Impaired [Line Items]
Financing receivable, gross	515,388	494,617
Commercial | Non-PCI Loans | Pass | Commercial real estate
Financing Receivable, Impaired [Line Items]
Financing receivable, gross	925,588	843,924
Commercial | Non-PCI Loans | Pass | Construction and land
Financing Receivable, Impaired [Line Items]
Financing receivable, gross	127,005	213,981
Commercial | Non-PCI Loans | Pass | Mortgage warehouse participations
Financing Receivable, Impaired [Line Items]
Financing receivable, gross	41,551	147,519
Commercial | Non-PCI Loans | Special Mention | Commercial and industrial
Financing Receivable, Impaired [Line Items]
Financing receivable, gross	13,362	3,160
Commercial | Non-PCI Loans | Special Mention | Commercial real estate
Financing Receivable, Impaired [Line Items]
Financing receivable, gross	9,730	5,513
Commercial | Non-PCI Loans | Special Mention | Construction and land
Financing Receivable, Impaired [Line Items]
Financing receivable, gross	4,721	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	27,179	26,399
Commercial | Non-PCI Loans | Substandard | Accruing Loans | Commercial real estate
Financing Receivable, Impaired [Line Items]
Financing receivable, gross	4,037	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	996	3
Commercial | Non-PCI Loans | Substandard | Nonaccruing Loans | Commercial real estate
Financing Receivable, Impaired [Line Items]
Financing receivable, gross	133	0
Commercial | Non-PCI Loans | Substandard | Nonaccruing Loans | Construction and land
Financing Receivable, Impaired [Line Items]
Financing receivable, gross	22	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 | Nonaccruing Loans | Commercial and industrial
Financing Receivable, Impaired [Line Items]
Financing receivable, gross	5	471
Commercial | Non-PCI Loans | Doubtful Nonaccruing | Nonaccruing Loans | Commercial real estate
Financing Receivable, Impaired [Line Items]
Financing receivable, gross	1,631	0
Commercial | Non-PCI Loans | Doubtful Nonaccruing | Nonaccruing Loans | Construction and land
Financing Receivable, Impaired [Line Items]
Financing receivable, gross	0	0
Commercial | Non-PCI Loans | Doubtful Nonaccruing | 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 | Nonaccruing Loans | Mortgage warehouse participations
Financing Receivable, Impaired [Line Items]
Financing receivable, gross	0	0
Residential
Financing Receivable, Impaired [Line Items]
Financing receivable, gross	180,749	179,279
Residential | Residential mortgages
Financing Receivable, Impaired [Line Items]
Financing receivable, gross	101,976	101,921
Residential | Home equity
Financing Receivable, Impaired [Line Items]
Financing receivable, gross	78,773	77,358
Residential | Non-PCI Loans | Residential mortgages
Financing Receivable, Impaired [Line Items]
Financing receivable, gross	100,340	99,140
Residential | Non-PCI Loans | Home equity
Financing Receivable, Impaired [Line Items]
Financing receivable, gross	77,890	75,596
Residential | Non-PCI Loans | Pass | Residential mortgages
Financing Receivable, Impaired [Line Items]
Financing receivable, gross	97,685	97,660
Residential | Non-PCI Loans | Pass | Home equity
Financing Receivable, Impaired [Line Items]
Financing receivable, gross	76,685	75,031
Residential | Non-PCI Loans | Special Mention | Residential mortgages
Financing Receivable, Impaired [Line Items]
Financing receivable, gross	1,365	586
Residential | Non-PCI Loans | Special Mention | Home equity
Financing Receivable, Impaired [Line Items]
Financing receivable, gross	41	168
Residential | Non-PCI Loans | Substandard | Accruing Loans | Residential mortgages
Financing Receivable, Impaired [Line Items]
Financing receivable, gross	714	747
Residential | Non-PCI Loans | Substandard | Accruing Loans | Home equity
Financing Receivable, Impaired [Line Items]
Financing receivable, gross	469	397
Residential | Non-PCI Loans | Substandard | Nonaccruing Loans | Residential mortgages
Financing Receivable, Impaired [Line Items]
Financing receivable, gross	248	147
Residential | Non-PCI Loans | Substandard | Nonaccruing Loans | Home equity
Financing Receivable, Impaired [Line Items]
Financing receivable, gross	695	0
Residential | Non-PCI Loans | Doubtful Nonaccruing | Nonaccruing Loans | Residential mortgages
Financing Receivable, Impaired [Line Items]
Financing receivable, gross	328	0
Residential | Non-PCI Loans | Doubtful Nonaccruing | 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	1,636	2,781
Residential | PCI Loans | Home equity
Financing Receivable, Impaired [Line Items]
Financing receivable, gross	883	1,762
Residential | PCI Loans | Pass | Residential mortgages
Financing Receivable, Impaired [Line Items]
Financing receivable, gross	396	59
Residential | PCI Loans | Pass | Home equity
Financing Receivable, Impaired [Line Items]
Financing receivable, gross	105	364
Residential | PCI Loans | Special Mention | Residential mortgages
Financing Receivable, Impaired [Line Items]
Financing receivable, gross	540	1,232
Residential | PCI Loans | Special Mention | Home equity
Financing Receivable, Impaired [Line Items]
Financing receivable, gross	475	834
Residential | PCI Loans | Substandard | Accruing Loans | Residential mortgages
Financing Receivable, Impaired [Line Items]
Financing receivable, gross	700	1,016
Residential | PCI Loans | Substandard | Accruing Loans | Home equity
Financing Receivable, Impaired [Line Items]
Financing receivable, gross	303	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 | Nonaccruing Loans | Residential mortgages
Financing Receivable, Impaired [Line Items]
Financing receivable, gross	0	474
Residential | PCI Loans | Doubtful Nonaccruing | Nonaccruing Loans | Home equity
Financing Receivable, Impaired [Line Items]
Financing receivable, gross	0	0
Consumer
Financing Receivable, Impaired [Line Items]
Financing receivable, gross	47,856	48,903
Consumer | Other
Financing Receivable, Impaired [Line Items]
Financing receivable, gross	47,856	48,903
Consumer | Non-PCI Loans | Other
Financing Receivable, Impaired [Line Items]
Financing receivable, gross	47,848	48,892
Consumer | Non-PCI Loans | Pass | Other
Financing Receivable, Impaired [Line Items]
Financing receivable, gross	47,594	48,680
Consumer | Non-PCI Loans | Special Mention | Other
Financing Receivable, Impaired [Line Items]
Financing receivable, gross	60	190
Consumer | Non-PCI Loans | Substandard | Accruing Loans | Other
Financing Receivable, Impaired [Line Items]
Financing receivable, gross	194	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 | 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	8	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	6	10
Consumer | PCI Loans | Substandard | Nonaccruing Loans | Other
Financing Receivable, Impaired [Line Items]
Financing receivable, gross	0	0
Consumer | PCI Loans | Doubtful Nonaccruing | 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	Sep. 30, 2017	Dec. 31, 2016
Financing Receivable, Recorded Investment, Past Due [Line Items]
Accruing Current	$ 1,881,075	$ 1,960,222
Nonaccruing	4,058	621
Loans, Total ending allowance balance	1,909,516	1,984,892
Commercial
Financing Receivable, Recorded Investment, Past Due [Line Items]
Loans, Total ending allowance balance	1,680,911	1,756,710
Commercial | Commercial and industrial
Financing Receivable, Recorded Investment, Past Due [Line Items]
Accruing Current	548,425	520,908
Nonaccruing	1,001	474
Loans, Total ending allowance balance	562,426	531,061
Commercial | Commercial real estate
Financing Receivable, Recorded Investment, Past Due [Line Items]
Accruing Current	936,836	852,626
Nonaccruing	1,764	0
Loans, Total ending allowance balance	944,854	858,778
Commercial | Construction and land
Financing Receivable, Recorded Investment, Past Due [Line Items]
Accruing Current	131,328	218,290
Nonaccruing	22	0
Loans, Total ending allowance balance	132,080	219,352
Commercial | Mortgage warehouse participations
Financing Receivable, Recorded Investment, Past Due [Line Items]
Accruing Current	41,551	147,519
Nonaccruing	0	0
Loans, Total ending allowance balance	41,551	147,519
Residential
Financing Receivable, Recorded Investment, Past Due [Line Items]
Loans, Total ending allowance balance	180,749	179,279
Residential | Residential mortgages
Financing Receivable, Recorded Investment, Past Due [Line Items]
Accruing Current	98,308	97,901
Nonaccruing	576	147
Loans, Total ending allowance balance	101,976	101,921
Residential | Home equity
Financing Receivable, Recorded Investment, Past Due [Line Items]
Accruing Current	76,951	74,420
Nonaccruing	695	0
Loans, Total ending allowance balance	78,773	77,358
Consumer
Financing Receivable, Recorded Investment, Past Due [Line Items]
Loans, Total ending allowance balance	47,856	48,903
Consumer | Other
Financing Receivable, Recorded Investment, Past Due [Line Items]
Accruing Current	47,676	48,558
Nonaccruing	0	0
Loans, Total ending allowance balance	47,856	48,903
Accruing 30-89 Days Past Due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Accruing past due	11,798	7,802
Accruing 30-89 Days Past Due | Commercial | Commercial and industrial
Financing Receivable, Recorded Investment, Past Due [Line Items]
Accruing past due	7,379	3,079
Accruing 30-89 Days Past Due | Commercial | Commercial real estate
Financing Receivable, Recorded Investment, Past Due [Line Items]
Accruing past due	2,519	2,382
Accruing 30-89 Days Past Due | Commercial | Construction and land
Financing Receivable, Recorded Investment, Past Due [Line Items]
Accruing past due	398	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	1,258	664
Accruing 30-89 Days Past Due | Residential | Home equity
Financing Receivable, Recorded Investment, Past Due [Line Items]
Accruing past due	244	884
Accruing 30-89 Days Past Due | Consumer | Other
Financing Receivable, Recorded Investment, Past Due [Line Items]
Accruing past due	0	249
Accruing 90 Days Past Due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Accruing past due	495	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	0	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	198	428
Accruing 90 Days Past Due | Residential | Home equity
Financing Receivable, Recorded Investment, Past Due [Line Items]
Accruing past due	0	292
Accruing 90 Days Past Due | Consumer | Other
Financing Receivable, Recorded Investment, Past Due [Line Items]
Accruing past due	172	85
PCI Loans
Financing Receivable, Recorded Investment, Past Due [Line Items]
Accruing Current	12,090	15,253
Loans, Total ending allowance balance	12,090	15,253
PCI Loans | Commercial and industrial
Financing Receivable, Recorded Investment, Past Due [Line Items]
Loans, Total ending allowance balance	5,496	6,411
PCI Loans | Commercial real estate
Financing Receivable, Recorded Investment, Past Due [Line Items]
Loans, Total ending allowance balance	3,735	3,770
PCI Loans | Construction and land
Financing Receivable, Recorded Investment, Past Due [Line Items]
Loans, Total ending allowance balance	332	518
PCI Loans | Commercial | Commercial and industrial
Financing Receivable, Recorded Investment, Past Due [Line Items]
Accruing Current	5,496	6,411
PCI Loans | Commercial | Commercial real estate
Financing Receivable, Recorded Investment, Past Due [Line Items]
Accruing Current	3,735	3,770
PCI Loans | Commercial | Construction and land
Financing Receivable, Recorded Investment, Past Due [Line Items]
Accruing Current	332	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	1,636	2,781
Loans, Total ending allowance balance	1,636	2,781
PCI Loans | Residential | Home equity
Financing Receivable, Recorded Investment, Past Due [Line Items]
Accruing Current	883	1,762
Loans, Total ending allowance balance	883	1,762
PCI Loans | Consumer | Other
Financing Receivable, Recorded Investment, Past Due [Line Items]
Accruing Current	8	11
Loans, Total ending allowance balance	$ 8	$ 11

XML

Goodwill and Intangible Assets (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016	Jun. 30, 2017	Dec. 31, 2016	Jun. 30, 2016	Dec. 31, 2015
Finite-Lived Intangible Assets [Line Items]
Total other intangibles, net	$ 6,186,000		$ 6,186,000			$ 7,808,000
Goodwill	21,759,000	$ 21,759,000	21,759,000	$ 21,759,000	$ 21,759,000	21,759,000	$ 22,446,000	$ 23,352,000
Total goodwill and other intangible assets, net	27,945,000		27,945,000			29,567,000
Goodwill purchase accounting adjustments		(687,000)	0	(1,593,000)
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	(4,257,000)		(4,257,000)			(2,971,000)
Less: impairment related to divested branches	(2,286,000)		(2,286,000)			(1,949,000)
Core deposit intangible, net	3,001,000	5,119,000	3,001,000	5,119,000	$ 3,392,000	4,624,000	$ 5,639,000	$ 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	3,185,000		3,185,000			3,184,000
Servicing assets, net	$ 3,185,000		$ 3,185,000			$ 3,184,000

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Goodwill and Intangible Assets (Goodwill and Other Intangible Assets Activity) (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Goodwill
Balance, beginning of period	$ 21,759	$ 22,446	$ 21,759	$ 23,352
Measurement period adjustments		(687)	0	(1,593)
Balance, end of period	21,759	21,759	21,759	21,759
Core Deposit Intangible
Amortization	(391)	(520)	(1,286)	(1,950)
Intangible Assets, Net (Including Goodwill) [Abstract]
Balance, beginning of period	25,151	28,085	26,383	32,370
Amortization	(391)	(520)	(1,286)	(1,950)
Impairment, due to branch divestiture	0	0	(337)	(1,949)
Measurement period adjustments		(687)	0	(1,593)
Balance, end of period	24,760	26,878	24,760	26,878
Core Deposits
Goodwill
Measurement period adjustments		0		0
Core Deposit Intangible
Balance, beginning of period	3,392	5,639	4,624	9,018
Amortization	(391)	(520)	(1,286)	(1,950)
Balance, end of period	3,001	5,119	3,001	5,119
Intangible Assets, Net (Including Goodwill) [Abstract]
Amortization	(391)	(520)	(1,286)	(1,950)
Impairment, due to branch divestiture	$ 0	0	$ (337)	(1,949)
Measurement period adjustments		$ 0		$ 0

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Servicing Assets (Narrative) (Details) - USD ($) $ in Millions	Sep. 30, 2017	Dec. 31, 2016
Transfers and Servicing [Abstract]
Loans sold and serviced	$ 126.0	$ 107.0

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Servicing Assets (SBA) (Details) - SBA Loan Servicing Assets - Commercial Loan - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
SBA Loan Servicing Rights
Beginning carrying value, net	$ 2,564	$ 2,117	$ 2,359	$ 1,687
Additions	157	328	750	889
Amortization	(221)	(125)	(609)	(256)
Impairment	0	0	0	0
Ending carrying value	$ 2,500	$ 2,320	$ 2,500	$ 2,320

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Servicing Assets (Sensitivity of the Fair Value to Immediate Changes in Key Economic Assumptions) (Details) - Commercial - USD ($) $ in Thousands	9 Months Ended	12 Months Ended
	Sep. 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	$ 2,771	$ 2,474
Weighted average life	6 years 7 months 13 days	6 years 6 months 8 days
Prepayment speed:	7.66%	7.67%
Decline in fair value due to a 10% adverse change	$ (108)	$ (89)
Decline in fair value due to a 20% adverse change	$ (183)	$ (151)
Weighted average discount rate	12.56%	12.27%
Decline in fair value due to a 100 bps adverse change	$ (117)	$ (97)
Decline in fair value due to a 200 bps adverse change	(200)	(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	$ 761	$ 840
Weighted average life	8 years 3 months	8 years 5 months 20 days
Prepayment speed:	5.00%	5.00%
Decline in fair value due to a 10% adverse change	$ (11)	$ (12)
Decline in fair value due to a 20% adverse change	$ (22)	$ (24)
Weighted average discount rate	8.00%	8.00%
Decline in fair value due to a 100 bps adverse change	$ (21)	$ (25)
Decline in fair value due to a 200 bps adverse change	$ (41)	$ (49)

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Servicing Assets (TriNet) (Details) - TriNet Servicing Assets - Commercial Loan - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Servicing Rights
Beginning carrying value, net	$ 731	$ 1,471	$ 825	$ 1,175
Additions	0	0	0	406
Amortization	(46)	(47)	(140)	(157)
Impairment	0	(551)	0	(551)
Ending carrying value	$ 685	$ 873	$ 685	$ 873

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Other Comprehensive Income (Loss) (Summary of Changes) (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
After-Tax Amount
Accumulated other comprehensive income (loss) beginning of period			$ 303,658	$ 287,992
Other comprehensive income, net of tax	$ 408	$ (793)	3,763	4,217
Accumulated other comprehensive income (loss) end of period	324,754	308,463	324,754	308,463
Reclassification adjustment for net realized losses on investment securities available-for-sale
Pre-Tax Amount
Unrealized net gains (losses) on investment securities available-for-sale	706	(853)	6,366	6,125
Reclassification adjustment for net realized gains (losses) on investment securities available-for-sale	80	0	80	(44)
Income Tax (Expense) Benefit
Unrealized net gains (losses) on investment securities available-for-sale	(272)	329	(2,450)	(2,354)
Reclassification adjustment for net realized gains (losses) on investment securities available-for-sale	(31)	0	(31)	17
After-Tax Amount
Unrealized net gains (losses) on investment securities available-for-sale	434	(524)	3,916	3,771
Reclassification adjustment for net realized gains (losses) on investment securities available-for-sale	49	0	49	(27)
Unrealized net gains (losses) on derivatives
Pre-Tax Amount
Unrealized net gains (losses) on derivatives	(121)	(438)	(327)	774
Income Tax (Expense) Benefit
Unrealized net gains (losses) on derivatives	46	169	125	(301)
After-Tax Amount
Other comprehensive income, net of tax	(75)	(269)	(202)	473
Accumulated Other Comprehensive Income (Loss)
Pre-Tax Amount
Accumulated other comprehensive income (loss) beginning of period	(3,690)	5,691	(9,144)	(2,455)
Accumulated other comprehensive income (loss) end of period	(3,025)	4,400	(3,025)	4,400
Income Tax (Expense) Benefit
Accumulated other comprehensive income (loss) beginning of period	1,420	(2,197)	3,519	939
Accumulated other comprehensive income (loss) end of period	1,163	(1,699)	1,163	(1,699)
After-Tax Amount
Accumulated other comprehensive income (loss) beginning of period	(2,270)	3,494	(5,625)	(1,516)
Accumulated other comprehensive income (loss) end of period	$ (1,862)	$ 2,701	$ (1,862)	$ 2,701

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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		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Earnings Per Share [Abstract]
Net income available to common shareholders	$ 4,052	$ 3,708	$ 11,611	$ 11,786
Weighted average shares outstanding
Basic (in shares)	25,699,179	24,891,822	25,548,646	24,674,953
Effect of dilutive securities:
Stock options and warrants (in shares)	191,600	368,458	251,205	431,297
Diluted (in shares)	25,890,779	25,260,280	25,799,851	25,106,250
Income per common share:
Basic (in dollars per share)	$ 0.16	$ 0.15	$ 0.45	$ 0.48
Diluted (in dollars per share)	$ 0.16	$ 0.15	$ 0.45	$ 0.47

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Earnings Per Common Share (Narrative) (Details) - shares	9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Dec. 31, 2016	Mar. 24, 2015
Earnings Per Share [Abstract]
Antidilutive securities excluded (in shares)	550	162,428
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)	25,716,418		25,093,135
Common stock outstanding (in shares)	25,716,418		25,093,135

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Derivatives and Hedging (Narrative) (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016	Dec. 31, 2016
Derivative [Line Items]
Notional Amount	$ 15,600,000		$ 15,600,000		$ 4,500,000
Expected reclassification from AOCI in the next twelve months	237,000		237,000
Collateral posted	9,500,000		9,500,000		16,300,000
Not designated as hedging instrument | Other assets
Derivative [Line Items]
Notional Amount	165,231,000		165,231,000		169,049,000
Swap | Not designated as hedging instrument
Derivative [Line Items]
Notional Amount	139,100,000		139,100,000		140,700,000
Swap | Not designated as hedging instrument | Other assets
Derivative [Line Items]
Notional Amount	69,543,000		69,543,000		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	75,000,000		75,000,000		50,000,000
Cash Flow Hedging | Designated as hedging instrument | Other assets | LIBOR
Derivative [Line Items]
Notional Amount	$ 0		$ 0		$ 50,000,000

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Derivatives and Hedging (Derivative Contracts and Credit Risk Participation Agreements) (Details) - USD ($) $ in Thousands	Sep. 30, 2017	Dec. 31, 2016
Derivative [Line Items]
Notional Amount	$ 15,600	$ 4,500
Designated as hedging instrument | Cash Flow Hedging | LIBOR
Derivative [Line Items]
Notional Amount	75,000	50,000
Not designated as hedging instrument | Swap
Derivative [Line Items]
Notional Amount	139,100	140,700
Other assets | Designated as hedging instrument | Cash Flow Hedging | LIBOR
Derivative [Line Items]
Notional Amount	0	50,000
Fair Value	0	186
Other assets | Not designated as hedging instrument
Derivative [Line Items]
Notional Amount	165,231	169,049
Fair Value	3,993	4,124
Other assets | Not designated as hedging instrument | Swap
Derivative [Line Items]
Notional Amount	69,543	70,352
Fair Value	1,168	1,364
Other assets | Not designated as hedging instrument | Zero premium collar
Derivative [Line Items]
Notional Amount	95,688	98,697
Fair Value	2,825	2,760
Other liabilities | Designated as hedging instrument | Cash Flow Hedging | LIBOR
Derivative [Line Items]
Notional Amount	75,000	0
Fair Value	56	0
Other liabilities | Not designated as hedging instrument
Derivative [Line Items]
Notional Amount	180,787	173,509
Fair Value	4,128	4,131
Other liabilities | Not designated as hedging instrument | Swap
Derivative [Line Items]
Notional Amount	69,543	70,352
Fair Value	1,214	1,371
Other liabilities | Not designated as hedging instrument | Credit risk participation
Derivative [Line Items]
Notional Amount	15,556	4,460
Fair Value	6	0
Other liabilities | Not designated as hedging instrument | Dealer offset to zero premium collar
Derivative [Line Items]
Notional Amount	95,688	98,697
Fair Value	$ 2,908	$ 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		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Derivative [Line Items]
Amount of Gain or (Loss) Recognized in OCI on Derivatives (Effective Portion)	$ (75)	$ (269)	$ (202)	$ 473
Gain or (Loss) Reclassified from Accumulated OCI in Income (Effective Portion)	$ 84	$ 177	$ 331	$ 546

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Other Borrowings and Long Term Debt (Schedule of Borrowings) (Details) - USD ($) $ in Thousands	Sep. 30, 2017	Dec. 31, 2016
Debt Instrument [Line Items]
Federal Home Loan Bank borrowings	$ 125,000	$ 110,000
FHLB short-term borrowings
Debt Instrument [Line Items]
Federal Home Loan Bank borrowings	125,000	110,000
FHLB short-term borrowings | Fixed rate advance maturing October 3, 2017
Debt Instrument [Line Items]
Federal Home Loan Bank borrowings	$ 40,000
Interest Rate	1.16%
FHLB short-term borrowings | Fixed rate advance maturing October 11, 2017
Debt Instrument [Line Items]
Federal Home Loan Bank borrowings	$ 40,000
Interest Rate	1.15%
FHLB short-term borrowings | Fixed rate advance maturing October 13, 2017
Debt Instrument [Line Items]
Federal Home Loan Bank borrowings	$ 45,000
Interest Rate	1.155%
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		0.618%

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Other Borrowings and Long Term Debt (Narrative) (Details) - Subordinated Debt - USD ($)		9 Months Ended
	Sep. 28, 2015	Sep. 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 ($)	9 Months Ended
	Sep. 30, 2017	Dec. 31, 2016	Sep. 28, 2015
Debt Instrument [Line Items]
Long-term debt	$ 49,493,000	$ 49,366,000
Subordinated Debt
Debt Instrument [Line Items]
Aggregate principal amount	50,000,000	50,000,000
Less debt issuance costs	507,000	634,000
Long-term debt	$ 49,493,000	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) $ / shares in Units, $ in Thousands		3 Months Ended		9 Months Ended
	May 14, 2007	Sep. 30, 2017 USD ($) individual shares	Sep. 30, 2016 USD ($)	Sep. 30, 2017 USD ($) shares	Sep. 30, 2016 USD ($)	Dec. 31, 2016 $ / shares shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share based compensation expense | $		$ 191	$ 192	$ 472	$ 638
Number of employees affected | individual		4
Total incremental cost resulting from modifications | $		$ 14		$ 14
Warrant
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Warrants outstanding (shares)		0		0		363,000
Share price (usd per share) | $ / shares						$ 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)				3,825,000
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 | $		$ 396	$ 71	$ 869	$ 527
Compensation cost not yet recognized | $		$ 3,000		$ 3,000
Compensation cost not yet recognized, period for recognition				3 years 1 month 10 days
Number of awards modified (in shares)		10,628
Employee Stock Option
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of awards modified (in shares)		30,400

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Share-Based Compensation (Fair Value of Options Assumptions) (Details) - Employee Stock Option	9 Months Ended
	Sep. 30, 2017
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Dividend yield	0.00%
Minimum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Risk‑free interest rate	1.00%
Expected term in years	3 months
Expected stock price volatility	23.20%
Maximum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Risk‑free interest rate	1.99%
Expected term in years	8 years
Expected stock price volatility	25.30%

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Share-Based Compensation (Stock Option and Warrant Activity) (Details) $ / shares in Units, $ in Thousands	9 Months Ended
	Sep. 30, 2017 USD ($) $ / shares shares
Shares
Outstanding, Beginning of period (in shares) | shares	1,485,704
Granted (in shares) | shares	30,400
Exercised (in shares) | shares	(718,912)
Forfeited (in shares) | shares	(32,846)
Expired (in shares) | shares	(635)
Outstanding, End of period (in shares) | shares	763,711
Exercisable, End of period (in shares) | shares	518,336
Weighted Average Exercise Price
Outstanding, Weighted average exercise price, Beginning of period (dollars per share) | $ / shares	$ 11.69
Granted, Weighted average exercise price (dollars per share) | $ / shares	12.39
Exercised, Weighted average exercise price (dollars per share) | $ / shares	10.53
Forfeited, Weighted average exercise price (dollars per share) | $ / shares	12.28
Expired, Weighted average exercise price (dollars per share) | $ / shares	126.22
Outstanding, Weighted average exercise price, End of period (dollars per share) | $ / shares	12.64
Exercisable, Weighted average exercise price, End of period (dollars per share) | $ / shares	$ 11.73
Share-based Compensation Arrangement by Share-based Payment Award, Options, Additional Disclosures [Abstract]
Outstanding, Weighted average remaining contractual term, End of period (in years)	5 years 9 months 8 days
Exercisable, Weighted average remaining contractual term, End of period (in years)	4 years 9 months 8 days
Outstanding, Aggregate intrinsic value, End of period | $	$ 4,348
Exercisable, Aggregate intrinsic value, End of period | $	$ 3,466

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Share-Based Compensation (Restricted Stock Activity) (Details) - Restricted Stock	9 Months Ended
	Sep. 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	110,293
Vested (in shares) | shares	(64,637)
Forfeited (in shares) | shares	(36,674)
End of period (in shares) | shares	268,147
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	17.85
Weighted average grant date fair value, Vested (dollars per share) | $ / shares	12.73
Weighted average grant date fair value, Forfeited (dollars per share) | $ / shares	14.88
Weighted average grant date fair value, Nonvested, End of period (dollars per share) | $ / shares	$ 15.47

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Fair Value Measurements (Fair Value Measurements Recurring) (Details) - USD ($) $ in Thousands	Sep. 30, 2017	Dec. 31, 2016
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total securities available-for-sale	$ 447,005	$ 347,705
Interest rate derivative assets	3,993	4,310
Interest rate derivative liabilities	4,184	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	447,005	347,705
Interest rate derivative assets	3,993	4,310
Interest rate derivative liabilities	4,184	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	447,005	347,705
Interest rate derivative assets	3,993	4,310
Interest rate derivative liabilities	4,184	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	34,783	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	34,783	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	93,779	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	93,779	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	4,675	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	4,675	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	16,156	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	16,156	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	297,612	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	297,612	$ 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	Sep. 30, 2017	Dec. 31, 2016
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets	$ 2,970	$ 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	$ 2,970	$ 7,248

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Fair Value Measurements (Estimated Fair Value and Carrying Value Summary) (Details) - USD ($) $ in Thousands	Sep. 30, 2017	Dec. 31, 2016
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash and due from banks	$ 35,504	$ 36,790
Interest-bearing deposits in banks	40,558	118,039
Other short-term investments	5,189	10,896
Total securities available-for-sale	447,005	347,705
Loans held for investment, net	1,886,562	1,960,735
Derivative assets	3,993	4,310
Subordinated debt	49,493	49,366
FHLB advances	125,000	110,000
Derivative financial instruments	4,184	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	35,504	36,790
Interest-bearing deposits in banks	40,558	118,039
Other short-term investments	5,189	10,896
Total securities available-for-sale	447,005	347,705
FHLB stock	7,788	7,067
Federal Reserve Bank stock	9,781	9,690
Loans held for investment, net	1,886,562	1,960,735
Loans held for sale	3,274	35,219
Derivative assets	3,993	4,310
Deposits	2,103,645	2,205,991
Deposits to be assumed in branch sale		31,589
Subordinated debt	49,493	49,366
FHLB advances	125,000	110,000
Derivative financial instruments	4,184	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	447,005	347,705
Derivative assets	3,993	4,310
Derivative financial instruments	4,184	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	35,504	36,790
Interest-bearing deposits in banks	40,558	118,039
Other short-term investments	5,189	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
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	447,005	347,705
FHLB stock	0	0
Federal Reserve Bank stock	0	0
Loans held for investment, net	0	0
Loans held for sale	3,274	35,219
Derivative assets	3,993	4,310
Deposits	2,019,911	2,144,196
Deposits to be assumed in branch sale		31,589
Subordinated debt	49,871	48,971
FHLB advances	125,007	109,946
Derivative financial instruments	4,184	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	7,788	7,067
Federal Reserve Bank stock	9,781	9,690
Loans held for investment, net	1,927,726	1,939,895
Loans held for sale	0	0
Derivative assets	0	0
Deposits	0	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	Sep. 30, 2017	Dec. 31, 2016
Loss Contingencies [Line Items]
Maximum credit risk exposure	$ 700,362	$ 634,057
Commitments to extend credit
Loss Contingencies [Line Items]
Maximum credit risk exposure	686,685	617,432
Standby letters of credit
Loss Contingencies [Line Items]
Maximum credit risk exposure	$ 13,677	$ 16,625

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Subsequent Event (Details) - President and Chief Operating Officer - Subsequent Event	Oct. 25, 2017 USD ($) shares
Restricted Stock
Subsequent Event [Line Items]
Acceleration of unvested stock (in shares) | shares	14,000
Employee Stock Option
Subsequent Event [Line Items]
Acceleration of unvested stock (in shares) | shares	120,680
Base Salary
Subsequent Event [Line Items]
Payments and benefits under the separation agreement	$ 407,265
Short Term Incentive Plan
Subsequent Event [Line Items]
Payments and benefits under the separation agreement	183,269
Short Term Incentive Plan Bonus
Subsequent Event [Line Items]
Payments and benefits under the separation agreement	150,000
Long Term Incentive Plan
Subsequent Event [Line Items]
Payments and benefits under the separation agreement	$ 612,883