Atlantic Capital in Atlanta Raises Stock Portion of First Security Deal

Atlantic Capital Bancshares in Atlanta has increased the portion of its common stock to be used in its pending $160 million acquisition of First Security Group in Chattanooga, Tenn.

First Security shareholders can receive 65% to 70% of their payment in the form of Atlantic Capital stock, up from the original deal's 60%. The rest of the payment will be in cash. The change has been approved by the boards of both companies.

"We believe that enhancing our capital position by adjusting the cash and stock mix of the transaction will better position us to meet our longer-term objectives," Doug Williams, Atlantic Capital's chief executive, said in a press release.

The change will increase the estimated pro forma shareholders' equity, as of March 31, from $264 million to between $272 million and $280 million.

Atlantic Capital announced the deal for First Security in March. The companies now expect the deal to close in the fourth quarter.