TALLAHASSEE, Fla., July 25, 2017 (GLOBE NEWSWIRE) -- Capital City Bank Group, Inc. (Nasdaq:CCBG) today reported net income of $3.6 million, or $0.21 per diluted share for the second quarter of 2017 compared to net income of $2.7 million, or $0.16 per diluted share for the first quarter of 2017, and $3.9 million, or $0.22 per diluted share, for the second quarter of 2016. For the first six months of 2017, net income totaled $6.3 million, or $0.37 per diluted share, compared to net income of $5.6 million, or $0.32 per diluted share for the same period in 2016.
HIGHLIGHTS
- Earnings per share grew 31% sequentially and 16% over prior year
- Net interest income grew 3.9% sequentially and 4.3% over prior year
- Strong period-end loan growth of 2.3% sequentially and 6.3% over prior year
- Continued progress in reducing noninterest expense, which declined 3.1% from prior year
- NPAs down 10% sequentially and 17% from year-end 2016
“Our year-to-date performance reflects continued improvement in most all aspects of our business,” said William G. Smith, Jr., Chairman, President and CEO. “Rising interest rates coupled with our asset sensitive balance sheet and loan growth are having a positive impact on our margin. Credit quality and expense management continued their favorable trends. Our team is focused on creating a positive client experience and executing on those initiatives that add value to our shareowners. I look forward to the opportunities and challenges that lie ahead.”
Compared to the first quarter of 2017, performance reflected higher net interest income of $0.8 million and a $0.4 million increase in noninterest income, partially offset by a $0.3 million increase in the loan loss provision.
Compared to the second quarter of 2016, the decrease in earnings reflected lower noninterest income of $2.0 million and a $0.7 million increase in the loan loss provision, partially offset by higher net interest income of $1.1 million, a $0.8 million reduction in noninterest expense, and lower incomes taxes of $0.5 million.
The increase in earnings for the first six months of 2017 versus the comparable period in 2016 was attributable to higher net interest income of $1.6 million and a $1.7 million reduction in noninterest expense, partially offset by a $0.5 million increase in the loan loss provision, lower noninterest income of $2.0 million, and a $0.1 million increase in income taxes.
Our return on average assets (“ROA”) was 0.51% and our return on average equity (“ROE”) was 5.07% for the second quarter of 2017. These metrics were 0.39% and 4.00% for the first quarter of 2017, respectively, and 0.57% and 5.65% for the second quarter of 2016, respectively. For the first six months of 2017, our ROA was 0.45% and our ROE was 4.54% compared to 0.41% and 4.03%, respectively, for the same period in 2016.
Discussion of Operating Results
Tax equivalent net interest income for the second quarter of 2017 was $20.8 million compared to $20.0 million for the first quarter of 2017 and $19.6 million for the second quarter of 2016. The increase in tax equivalent net interest income compared to the first quarter of 2017 reflects a favorable shift in the earning asset mix, one additional calendar day, and higher short-term rates, partially offset by higher rates paid on negotiated rate deposits. The increase in tax equivalent net interest income compared to the second quarter of 2016 reflects growth in the loan portfolio, and higher short-term rates, partially offset by a higher rate paid on negotiated rate deposits. For the first six months of 2017, tax equivalent net interest income totaled $40.8 million compared to $39.0 million for the comparable period in 2016. The year over year increase was driven by growth in the loan and investment portfolios, coupled with higher short-term rates, partially offset by a higher rate paid on negotiated rate deposits and one less calendar day.
The overnight funds rate has increased four times since December 2015, from a range of 0.00%-0.25% to a range of 1.00% to 1.25%. These increases have positively affected our net interest income due to favorable repricing of our variable and adjustable rate earning assets. Although these rate increases have also resulted in higher rates paid on our negotiated rate products, we continue to monitor and manage our overall cost of funds, which was 15 basis points in the second quarter of 2017. Despite highly competitive loan pricing across most markets, the yield of the overall loan portfolio increased quarter-over-quarter.
Our net interest margin for the second quarter of 2017 was 3.33%, an increase of 12 basis points over the first quarter of 2017 and an increase of 11 basis points over the second quarter of 2016. For the first six months of 2017, the net interest margin increased six basis points to 3.27% compared to the same period of 2016. The increase in the margin as compared to all respective periods reflects rising interest rates and a favorable shift in our earning asset mix, which has produced higher net interest income in each period.
The provision for loan losses for the second quarter of 2017 was $0.6 million compared to $0.3 million for the first quarter of 2017 and negative $0.1 million for the second quarter of 2016. For the first six months of 2017, the loan loss provision totaled $0.9 million compared to $0.4 million for the same period of 2016. The increase in the loan loss provision compared to all prior periods was primarily attributable to growth in the loan portfolio. At June 30, 2017, the allowance for loan losses was $13.2 million, or 0.81% of outstanding loans (net of overdrafts) and provided coverage of 166% of nonperforming loans compared to 0.84% and 161%, respectively, at March 31, 2017 and 0.86% and 157%, respectively, at December 31, 2016.
Noninterest income for the second quarter of 2017 totaled $13.1 million, an increase of $0.4 million, or 3.3%, over the first quarter of 2017 due to higher wealth management fees of $0.2 million and mortgage banking fees of $0.2 million. Compared to the second quarter of 2016, noninterest income decreased $2.0 million, or 13.7%, due to a $2.5 million decrease in other income and lower deposit fees of $0.2 million, partially offset by higher wealth management fees of $0.4 million and mortgage banking fees of $0.3 million. The reduction in other income was due to a $2.5 million gain from the partial retirement of our trust preferred securities (“TRUPs”) in the second quarter of 2016. For the first six months of 2017, noninterest income totaled $25.9 million, a $2.0 million, or 7.3%, decrease from the same period of 2016, due to lower other income of $2.4 million related to the aforementioned TRUPs gain and to a lesser extent lower deposit fees of $0.6 million that were partially offset by higher wealth management fees of $0.4 million and mortgage banking fees of $0.6 million. Strong home sales in our markets and a growing market share of residential loan production continues to enhance our mortgage banking fees and improved sales efforts have resulted in strong growth in wealth management fees during 2017.
Noninterest expense for the second quarter of 2017 totaled $27.9 million comparable to the first quarter of 2017 as lower compensation expense of $0.2 million and other real estate owned (“OREO”) expense of $0.3 million were offset by higher occupancy expense of $0.2 million and other expense of $0.3 million. Compared to the second quarter of 2016, noninterest expense decreased $0.8 million, or 2.7%, primarily due to lower OREO expense. For the first six months of 2017, noninterest expense totaled $55.8 million, a decrease of $1.8 million, or 3.1%, from the same period of 2016 primarily attributable to lower OREO expense of $1.6 million and other expense of $0.6 million that was partially offset by higher compensation expense of $0.5 million. OREO expense continues to decline as we liquidate our remaining properties. Further reduction in legal expense and FDIC insurance expense drove the reduction in other expense. The increase in compensation expense was primarily due to higher stock compensation expense related to higher pay-out values reflective of improving financial performance.
We realized income tax expense of $1.6 million (30% effective rate) for the second quarter of 2017 compared to $1.5 million (35% effective rate) for the first quarter of 2017 and $2.1 million (34% effective rate) for the second quarter of 2016. The lower effective tax rate for the second quarter of 2017 reflects income tax benefits realized in connection with stock based compensation awards. For the first six months of 2017, income tax expense totaled $3.0 million (33% effective rate) compared to $2.9 million (34% effective rate) for the comparable period of 2016.
Discussion of Financial Condition
Average earning assets were $2.502 billion for the second quarter of 2017, a decrease of $27.2 million, or 1.1%, from the first quarter of 2017, and an increase of $78.6 million, or 3.2%, over the fourth quarter of 2016. The change in earning assets in each of the respective periods is attributable to increases/decreases in our short-term investments and growth in our loan portfolio. Changes in the level of our short-term investments (which consists primarily of overnight funds) are partially attributable to the seasonality of our public fund deposits.
We maintained an average net overnight funds (deposits with banks plus fed funds sold less fed funds purchased) sold position of $200.8 million during the second quarter of 2017 compared to an average net overnight funds sold position of $245.2 million in the first quarter of 2017 and $145.5 million in the fourth quarter of 2016. The decrease in net overnight funds compared to the first quarter of 2017 reflected growth in our loan portfolio and declines in public fund balances. The increase in net overnight funds compared to the fourth quarter of 2016 primarily reflected higher levels of all deposit products other than certificates of deposit, partially offset by growth in the loan portfolio.
Average loans increased $23.1 million, or 1.5% compared to the first quarter of 2017, and have grown $35.4 million, or 2.3% compared to the fourth quarter of 2016. The increase compared to the prior quarter reflected growth in all loans types except commercial loans and home equity loans. Growth over the fourth quarter of 2016 was experienced in all loan products except institutional loans and home equity loans. Although having a minimal impact on this quarters’ average balance, a $16.4 million pool of fixed and adjustable rate commercial real estate loans was purchased in late June.
We continue to make minor modifications on some of our lending programs to try to mitigate the impact that consumer and business deleveraging has had on our portfolio. These programs, coupled with economic improvements in our anchor markets, have helped to increase overall production.
Nonperforming assets (nonaccrual loans and OREO) totaled $15.9 million at the end of the second quarter of 2017, a decrease of $1.9 million, or 10%, from the first quarter of 2017 and $3.2 million, or 17%, from the fourth quarter of 2016. Nonaccrual loans totaled $7.9 million at the end of the second quarter of 2017, a $0.3 million decrease from the first quarter of 2017 and a $0.6 million decrease from the fourth quarter of 2016. The balance of OREO totaled $8.0 million at the end of the second quarter of 2017, a decrease of $1.6 million from the first quarter of 2017 and $2.7 million from the fourth quarter of 2016. Nonperforming assets represented 0.57% of total assets as of June 30, 2017 compared to 0.61% at March 31, 2017 and 0.67% at December 31, 2016.
Average total deposits were $2.373 billion for the second quarter of 2017, a decrease of $33.9 million, or 1.4%, from the first quarter of 2017, and an increase of $66.5 million, or 2.9% over the fourth quarter of 2016. The decline in deposits compared to the first quarter of 2017 reflected lower public NOW account and certificates of deposit balances, partially offset by increases in all other deposit types. The increase in deposits when compared to the fourth quarter of 2016 reflected growth in all deposit products except certificates of deposit. The seasonal inflows of public funds peaked in the first quarter of 2017 for this cycle, and are expected to decline into the fourth quarter of 2017.
Deposit levels remain strong, as the seasonal decline in public NOW accounts was partially offset by increases in all other nonmaturity deposits during the quarter. Average core deposits continue to experience growth as rates have increased from historical lows. We continue to monitor our overall liquidity position and deposit rates as we believe that a prudent pricing discipline remains the key to managing our mix of deposits.
Compared to the first quarter of 2017, average borrowings decreased $2.3 million due to a decline in short-term borrowings, partially offset by an increase in average long-term borrowings. Compared to the fourth quarter of 2016, average borrowings decreased by $7.2 million due to a $1.1 million reduction in repurchase agreements, with the remaining $6.1 million decline resulting from FHLB pay-downs of matched funded advances.
Shareowners’ equity was $281.5 million at June 30, 2017, compared to $278.1 million at March 31, 2017 and $275.2 million at December 31, 2016. Our leverage ratio was 10.20%, 9.95%, and 10.23%, respectively, for these periods. Further, at June 30, 2017, our risk-adjusted capital ratio was 16.32% compared to 16.44% and 16.28% at March 31, 2017 and December 31, 2016, respectively. Our common equity tier 1 ratio was 12.72% at June 30, 2017, compared to 12.77% at March 31, 2017 and 12.61% at December 31, 2016. All of our capital ratios exceeded the threshold to be designated as “well-capitalized” under the Basel III capital standards.
About Capital City Bank Group, Inc.
Capital City Bank Group, Inc. (Nasdaq:CCBG) is one of the largest publicly traded financial holding companies headquartered in Florida and has approximately $2.8 billion in assets. We provide a full range of banking services, including traditional deposit and credit services, mortgage banking, asset management, trust, merchant services, bankcards, and securities brokerage services. Our bank subsidiary, Capital City Bank, was founded in 1895 and now has 60 banking offices and 74 ATMs in Florida, Georgia and Alabama. For more information about Capital City Bank Group, Inc., visit www.ccbg.com.
FORWARD-LOOKING STATEMENTS
Forward-looking statements in this Press Release are based on current plans and expectations that are subject to uncertainties and risks, which could cause the Company’s future results to differ materially. The following factors, among others, could cause the Company’s actual results to differ: the accuracy of the Company’s financial statement estimates and assumptions; legislative or regulatory changes, including the Dodd-Frank Act, Basel III, and the ability to repay and qualified mortgage standards; fluctuations in inflation, interest rates, or monetary policies; the effects of security breaches and computer viruses that may affect the Company’s computer systems or fraud related to debit card products; changes in consumer spending and savings habits; the Company’s growth and profitability; the strength of the U.S. economy and the local economies where the Company conducts operations; the effects of the Company’s lack of a diversified loan portfolio, including the risks of geographic and industry concentrations; harsh weather conditions and man-made disasters; changes in the stock market and other capital and real estate markets; customer acceptance of third-party products and services; increased competition and its effect on pricing, including the long-term impact on our net interest margin from the repeal of Regulation Q; negative publicity and the impact on our reputation; technological changes, especially changes that allow out of market competitors to compete in our markets; changes in accounting; and the Company’s ability to manage the risks involved in the foregoing. Additional factors can be found in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2016, and the Company’s other filings with the SEC, which are available at the SEC’s internet site (http://www.sec.gov). Forward-looking statements in this Press Release speak only as of the date of the Press Release, and the Company assumes no obligation to update forward-looking statements or the reasons why actual results could differ.
USE OF NON-GAAP FINANCIAL MEASURES
We present a tangible common equity ratio and a tangible book value per diluted share that removes the effect of goodwill resulting from merger and acquisition activity. We believe these measures are useful to investors because it allows investors to more easily compare our capital adequacy to other companies in the industry. The GAAP to non-GAAP reconciliation is provided below.
| (Dollars in Thousands) | Jun 30, 2017 | Mar 31, 2017 | Dec 31, 2016 | Sep 30, 2016 | Jun 30, 2016 | |||||||||||||||
| Shareowners' Equity (GAAP) | $ | 281,513 | $ | 278,059 | $ | 275,168 | $ | 276,624 | $ | 274,824 | ||||||||||
| Less: Goodwill (GAAP) | 84,811 | 84,811 | 84,811 | 84,811 | 84,811 | |||||||||||||||
| Tangible Shareowners' Equity (non-GAAP) | A | 196,702 | 193,248 | 190,357 | 191,813 | 190,013 | ||||||||||||||
| Total Assets (GAAP) | 2,814,843 | 2,895,531 | 2,845,197 | 2,753,154 | 2,767,636 | |||||||||||||||
| Less: Goodwill (GAAP) | 84,811 | 84,811 | 84,811 | 84,811 | 84,811 | |||||||||||||||
| Tangible Assets (non-GAAP) | B | $ | 2,730,032 | $ | 2,810,720 | $ | 2,760,386 | $ | 2,668,343 | $ | 2,682,825 | |||||||||
| Tangible Common Equity Ratio (non-GAAP) | A/B | 7.21% | 6.88% | 6.90% | 7.19% | 7.08% | ||||||||||||||
| Actual Diluted Shares Outstanding (GAAP) | C | 17,025 | 16,979 | 16,949 | 16,874 | 16,855 | ||||||||||||||
| Tangible Book Value per Diluted Share (non-GAAP) | A/C | $ | 11.55 | $ | 11.38 | $ | 11.23 | $ | 11.37 | $ | 11.27 | |||||||||
| CAPITAL CITY BANK GROUP, INC. | |||||||||||||||
| EARNINGS HIGHLIGHTS | |||||||||||||||
| Unaudited | |||||||||||||||
| Three Months Ended | Six Months Ended | ||||||||||||||
| (Dollars in thousands, except per share data) | Jun 30, 2017 | Mar 31, 2017 | Jun 30, 2016 | Jun 30, 2017 | Jun 30, 2016 | ||||||||||
| EARNINGS | |||||||||||||||
| Net Income | $ | 3,561 | $ | 2,744 | $ | 3,930 | $ | 6,305 | $ | 5,577 | |||||
| Net Income Per Common Share | $ | 0.21 | $ | 0.16 | $ | 0.22 | $ | 0.37 | $ | 0.32 | |||||
| PERFORMANCE | |||||||||||||||
| Return on Average Assets | 0.51% | 0.39% | 0.57% | 0.45% | 0.41% | ||||||||||
| Return on Average Equity | 5.07% | 4.00% | 5.65% | 4.54% | 4.03% | ||||||||||
| Net Interest Margin | 3.33% | 3.21% | 3.22% | 3.27% | 3.21% | ||||||||||
| Noninterest Income as % of Operating Revenue | 39.05% | 39.19% | 43.99% | 39.12% | 41.96% | ||||||||||
| Efficiency Ratio | 82.28% | 85.33% | 82.40% | 83.78% | 86.11% | ||||||||||
| CAPITAL ADEQUACY | |||||||||||||||
| Tier 1 Capital Ratio | 15.58% | 15.68% | 15.63% | 15.58% | 15.63% | ||||||||||
| Total Capital Ratio | 16.32% | 16.44% | 16.44% | 16.32% | 16.44% | ||||||||||
| Tangible Common Equity Ratio | 7.21% | 6.88% | 7.08% | 7.21% | 7.08% | ||||||||||
| Leverage Ratio | 10.20% | 9.95% | 9.88% | 10.20% | 9.88% | ||||||||||
| Common Equity Tier 1 Ratio | 12.72% | 12.77% | 12.65% | 12.72% | 12.65% | ||||||||||
| Equity to Assets | 10.00% | 9.60% | 9.93% | 10.00% | 9.93% | ||||||||||
| ASSET QUALITY | |||||||||||||||
| Allowance as % of Non-Performing Loans | 166.23% | 160.70% | 166.50% | 166.23% | 166.50% | ||||||||||
| Allowance as a % of Loans | 0.81% | 0.84% | 0.89% | 0.81% | 0.89% | ||||||||||
| Net Charge-Offs as % of Average Loans | 0.17% | 0.10% | (0.04)% | 0.14% | 0.08% | ||||||||||
| Nonperforming Assets as % of Loans and ORE | 0.97% | 1.11% | 1.48% | 0.97% | 1.48% | ||||||||||
| Nonperforming Assets as % of Total Assets | 0.57% | 0.61% | 0.83% | 0.57% | 0.83% | ||||||||||
| STOCK PERFORMANCE | |||||||||||||||
| High | $ | 22.39 | $ | 21.79 | $ | 15.96 | $ | 22.39 | $ | 15.96 | |||||
| Low | 17.68 | 19.22 | 13.16 | 17.68 | 12.83 | ||||||||||
| Close | $ | 20.42 | $ | 21.39 | $ | 13.92 | $ | 20.42 | $ | 13.92 | |||||
| Average Daily Trading Volume | 23,349 | 23,150 | 20,192 | 23,251 | 21,426 | ||||||||||
| CAPITAL CITY BANK GROUP, INC. | |||||||||||||||
| CONSOLIDATED STATEMENT OF FINANCIAL CONDITION | |||||||||||||||
| Unaudited | |||||||||||||||
| 2017 | 2016 | ||||||||||||||
| (Dollars in thousands) | Second Quarter | First Quarter | Fourth Quarter | Third Quarter | Second Quarter | ||||||||||
| ASSETS | |||||||||||||||
| Cash and Due From Banks | $ | 72,801 | $ | 47,650 | $ | 48,268 | $ | 79,608 | $ | 51,766 | |||||
| Funds Sold and Interest Bearing Deposits | 162,377 | 290,897 | 247,779 | 144,576 | 220,719 | ||||||||||
| Total Cash and Cash Equivalents | 235,178 | 338,547 | 296,047 | 224,184 | 272,485 | ||||||||||
| Investment Securities Available for Sale | 529,686 | 541,102 | 522,734 | 500,139 | 485,848 | ||||||||||
| Investment Securities Held to Maturity | 157,074 | 158,515 | 177,365 | 189,928 | 204,474 | ||||||||||
| Total Investment Securities | 686,760 | 699,617 | 700,099 | 690,067 | 690,322 | ||||||||||
| Loans Held for Sale | 8,213 | 7,498 | 10,886 | 10,510 | 12,046 | ||||||||||
| Loans, Net of Unearned Interest | |||||||||||||||
| Commercial, Financial, & Agricultural | 213,544 | 214,595 | 216,404 | 223,278 | 207,105 | ||||||||||
| Real Estate - Construction | 67,331 | 59,938 | 58,443 | 54,107 | 46,930 | ||||||||||
| Real Estate - Commercial | 519,140 | 503,868 | 503,978 | 497,775 | 485,329 | ||||||||||
| Real Estate - Residential | 302,072 | 295,406 | 272,895 | 276,193 | 280,015 | ||||||||||
| Real Estate - Home Equity | 230,995 | 231,300 | 236,512 | 235,433 | 235,394 | ||||||||||
| Consumer | 269,539 | 268,921 | 262,735 | 258,173 | 252,347 | ||||||||||
| Other Loans | 17,057 | 9,586 | 8,614 | 10,875 | 11,177 | ||||||||||
| Overdrafts | 1,518 | 1,345 | 1,708 | 1,678 | 2,177 | ||||||||||
| Total Loans, Net of Unearned Interest | 1,621,196 | 1,584,959 | 1,561,289 | 1,557,512 | 1,520,474 | ||||||||||
| Allowance for Loan Losses | (13,242 | ) | (13,335 | ) | (13,431 | ) | (13,744 | ) | (13,677 | ) | |||||
| Loans, Net | 1,607,954 | 1,571,624 | 1,547,858 | 1,543,768 | 1,506,797 | ||||||||||
| Premises and Equipment, Net | 92,495 | 93,755 | 95,476 | 96,499 | 97,313 | ||||||||||
| Goodwill | 84,811 | 84,811 | 84,811 | 84,811 | 84,811 | ||||||||||
| Other Real Estate Owned | 7,968 | 9,501 | 10,638 | 12,738 | 14,622 | ||||||||||
| Other Assets | 91,464 | 90,178 | 99,382 | 90,577 | 89,240 | ||||||||||
| Total Other Assets | 276,738 | 278,245 | 290,307 | 284,625 | 285,986 | ||||||||||
| Total Assets | $ | 2,814,843 | $ | 2,895,531 | $ | 2,845,197 | $ | 2,753,154 | $ | 2,767,636 | |||||
| LIABILITIES | |||||||||||||||
| Deposits: | |||||||||||||||
| Noninterest Bearing Deposits | $ | 842,314 | $ | 836,011 | $ | 791,182 | $ | 801,671 | $ | 798,219 | |||||
| NOW Accounts | 787,090 | 882,605 | 904,014 | 793,363 | 804,263 | ||||||||||
| Money Market Accounts | 265,032 | 263,080 | 252,800 | 257,004 | 259,813 | ||||||||||
| Regular Savings Accounts | 327,560 | 321,160 | 304,680 | 298,682 | 294,432 | ||||||||||
| Certificates of Deposit | 149,937 | 156,449 | 159,610 | 164,387 | 168,079 | ||||||||||
| Total Deposits | 2,371,933 | 2,459,305 | 2,412,286 | 2,315,107 | 2,324,806 | ||||||||||
| Short-Term Borrowings | 6,105 | 7,603 | 12,749 | 12,113 | 9,609 | ||||||||||
| Subordinated Notes Payable | 52,887 | 52,887 | 52,887 | 52,887 | 52,887 | ||||||||||
| Other Long-Term Borrowings | 15,631 | 16,460 | 14,881 | 21,368 | 26,401 | ||||||||||
| Other Liabilities | 86,774 | 81,217 | 77,226 | 75,055 | 79,109 | ||||||||||
| Total Liabilities | 2,533,330 | 2,617,472 | 2,570,029 | 2,476,530 | 2,492,812 | ||||||||||
| SHAREOWNERS' EQUITY | |||||||||||||||
| Common Stock | 170 | 170 | 168 | 168 | 168 | ||||||||||
| Additional Paid-In Capital | 35,522 | 34,859 | 34,188 | 33,152 | 32,855 | ||||||||||
| Retained Earnings | 271,646 | 268,934 | 267,037 | 264,581 | 262,380 | ||||||||||
| Accumulated Other Comprehensive Loss, Net of Tax | (25,825 | ) | (25,904 | ) | (26,225 | ) | (21,277 | ) | (20,579 | ) | |||||
| Total Shareowners' Equity | 281,513 | 278,059 | 275,168 | 276,624 | 274,824 | ||||||||||
| Total Liabilities and Shareowners' Equity | $ | 2,814,843 | $ | 2,895,531 | $ | 2,845,197 | $ | 2,753,154 | $ | 2,767,636 | |||||
| OTHER BALANCE SHEET DATA | |||||||||||||||
| Earning Assets | $ | 2,478,546 | $ | 2,582,971 | $ | 2,520,053 | $ | 2,402,664 | $ | 2,443,561 | |||||
| Interest Bearing Liabilities | 1,604,242 | 1,700,244 | 1,701,621 | 1,599,804 | 1,615,484 | ||||||||||
| Book Value Per Diluted Share | $ | 16.54 | $ | 16.38 | $ | 16.23 | $ | 16.39 | $ | 16.31 | |||||
| Tangible Book Value Per Diluted Share | 11.55 | 11.38 | 11.23 | 11.37 | 11.27 | ||||||||||
| Actual Basic Shares Outstanding | 16,964 | 16,954 | 16,845 | 16,807 | 16,804 | ||||||||||
| Actual Diluted Shares Outstanding | 17,025 | 16,979 | 16,949 | 16,874 | 16,855 | ||||||||||
| CAPITAL CITY BANK GROUP, INC. | |||||||||||||||||||||
| CONSOLIDATED STATEMENT OF OPERATIONS | |||||||||||||||||||||
| Unaudited | |||||||||||||||||||||
| Six Months Ended | |||||||||||||||||||||
| 2017 | 2016 | June 30, | |||||||||||||||||||
| (Dollars in thousands, except per share data) | Second Quarter | First Quarter | Fourth Quarter | Third Quarter | Second Quarter | 2017 | 2016 | ||||||||||||||
| INTEREST INCOME | |||||||||||||||||||||
| Interest and Fees on Loans | $ | 18,720 | $ | 18,005 | $ | 18,671 | $ | 18,046 | $ | 18,105 | $ | 36,725 | $ | 36,150 | |||||||
| Investment Securities | 2,169 | 2,042 | 1,949 | 1,846 | 1,751 | 4,211 | 3,388 | ||||||||||||||
| Funds Sold | 533 | 493 | 212 | 212 | 318 | 1,026 | 680 | ||||||||||||||
| Total Interest Income | 21,422 | 20,540 | 20,832 | 20,104 | 20,174 | 41,962 | 40,218 | ||||||||||||||
| INTEREST EXPENSE | |||||||||||||||||||||
| Deposits | 388 | 281 | 224 | 223 | 211 | 669 | 432 | ||||||||||||||
| Short-Term Borrowings | 17 | 45 | 57 | 43 | 38 | 62 | 48 | ||||||||||||||
| Subordinated Notes Payable | 404 | 379 | 363 | 341 | 343 | 783 | 730 | ||||||||||||||
| Other Long-Term Borrowings | 117 | 99 | 129 | 177 | 206 | 216 | 422 | ||||||||||||||
| Total Interest Expense | 926 | 804 | 773 | 784 | 798 | 1,730 | 1,632 | ||||||||||||||
| Net Interest Income | 20,496 | 19,736 | 20,059 | 19,320 | 19,376 | 40,232 | 38,586 | ||||||||||||||
| Provision for Loan Losses | 589 | 310 | 464 | - | (97 | ) | 899 | 355 | |||||||||||||
| Net Interest Income after Provision for Loan Losses | 19,907 | 19,426 | 19,595 | 19,320 | 19,473 | 39,333 | 38,231 | ||||||||||||||
| NONINTEREST INCOME | |||||||||||||||||||||
| Deposit Fees | 5,052 | 5,090 | 5,238 | 5,373 | 5,321 | 10,142 | 10,721 | ||||||||||||||
| Bank Card Fees | 2,870 | 2,803 | 2,754 | 2,759 | 2,855 | 5,673 | 5,708 | ||||||||||||||
| Wealth Management Fees | 2,073 | 1,842 | 1,773 | 1,774 | 1,690 | 3,915 | 3,482 | ||||||||||||||
| Mortgage Banking Fees | 1,556 | 1,308 | 1,392 | 1,503 | 1,267 | 2,864 | 2,297 | ||||||||||||||
| Other | 1,584 | 1,675 | 1,621 | 1,602 | 4,082 | 3,259 | 5,684 | ||||||||||||||
| Total Noninterest Income | 13,135 | 12,718 | 12,778 | 13,011 | 15,215 | 25,853 | 27,892 | ||||||||||||||
| NONINTEREST EXPENSE | |||||||||||||||||||||
| Compensation | 16,292 | 16,496 | 16,699 | 15,993 | 16,051 | 32,788 | 32,292 | ||||||||||||||
| Occupancy, Net | 4,555 | 4,381 | 4,519 | 4,734 | 4,584 | 8,936 | 9,043 | ||||||||||||||
| Other Real Estate, Net | 315 | 583 | 343 | 821 | 1,060 | 898 | 2,485 | ||||||||||||||
| Other | 6,759 | 6,462 | 5,999 | 6,474 | 7,007 | 13,221 | 13,812 | ||||||||||||||
| Total Noninterest Expense | 27,921 | 27,922 | 27,560 | 28,022 | 28,702 | 55,843 | 57,632 | ||||||||||||||
| OPERATING PROFIT | 5,121 | 4,222 | 4,813 | 4,309 | 5,986 | 9,343 | 8,491 | ||||||||||||||
| Income Tax Expense | 1,560 | 1,478 | 1,517 | 1,436 | 2,056 | 3,038 | 2,914 | ||||||||||||||
| NET INCOME | $ | 3,561 | $ | 2,744 | $ | 3,296 | $ | 2,873 | $ | 3,930 | $ | 6,305 | $ | 5,577 | |||||||
| PER SHARE DATA | |||||||||||||||||||||
| Basic Net Income | $ | 0.21 | $ | 0.16 | $ | 0.20 | $ | 0.18 | $ | 0.22 | $ | 0.37 | $ | 0.32 | |||||||
| Diluted Net Income | 0.21 | 0.16 | 0.20 | 0.17 | 0.22 | 0.37 | 0.32 | ||||||||||||||
| Cash Dividend | $ | 0.05 | $ | 0.05 | $ | 0.05 | $ | 0.04 | $ | 0.04 | $ | 0.10 | $ | 0.08 | |||||||
| AVERAGE SHARES | |||||||||||||||||||||
| Basic | 16,955 | 16,919 | 16,809 | 16,804 | 17,144 | 16,937 | 17,173 | ||||||||||||||
| Diluted | 17,016 | 16,944 | 16,913 | 16,871 | 17,196 | 16,993 | 17,215 | ||||||||||||||
| CAPITAL CITY BANK GROUP, INC. | |||||||||||||||||||||
| ALLOWANCE FOR LOAN LOSSES | |||||||||||||||||||||
| AND RISK ELEMENT ASSETS | |||||||||||||||||||||
| Unaudited | |||||||||||||||||||||
| Six Months Ended | |||||||||||||||||||||
| 2017 | 2016 | June 30, | |||||||||||||||||||
| (Dollars in thousands, except per share data) | Second Quarter | First Quarter | Fourth Quarter | Third Quarter | Second Quarter | 2017 | 2016 | ||||||||||||||
| ALLOWANCE FOR LOAN LOSSES | |||||||||||||||||||||
| Balance at Beginning of Period | $ | 13,335 | $ | 13,431 | $ | 13,744 | $ | 13,677 | $ | 13,613 | $ | 13,431 | $ | 13,953 | |||||||
| Provision for Loan Losses | 589 | 310 | 464 | - | (97 | ) | 899 | 355 | |||||||||||||
| Net Charge-Offs | 682 | 406 | 777 | (67 | ) | (161 | ) | 1,088 | 631 | ||||||||||||
| Balance at End of Period | $ | 13,242 | $ | 13,335 | $ | 13,431 | $ | 13,744 | $ | 13,677 | $ | 13,242 | $ | 13,677 | |||||||
| As a % of Loans | 0.81% | 0.84% | 0.86% | 0.88% | 0.89% | 0.81% | 0.89% | ||||||||||||||
| As a % of Nonperforming Loans | 166.23% | 160.70% | 157.40% | 159.56% | 166.50% | 166.23% | 166.50% | ||||||||||||||
| CHARGE-OFFS | |||||||||||||||||||||
| Commercial, Financial and Agricultural | $ | 324 | $ | 93 | $ | 377 | $ | 143 | $ | 304 | $ | 417 | $ | 341 | |||||||
| Real Estate - Construction | - | - | - | - | - | - | - | ||||||||||||||
| Real Estate - Commercial | 478 | 71 | 70 | 5 | - | 549 | 274 | ||||||||||||||
| Real Estate - Residential | 44 | 116 | 120 | 96 | 205 | 160 | 683 | ||||||||||||||
| Real Estate - Home Equity | - | 92 | 38 | 51 | 146 | 92 | 361 | ||||||||||||||
| Consumer | 537 | 624 | 771 | 479 | 438 | 1,161 | 877 | ||||||||||||||
| Total Charge-Offs | $ | 1,383 | $ | 996 | $ | 1,376 | $ | 774 | $ | 1,093 | $ | 2,379 | $ | 2,536 | |||||||
| RECOVERIES | |||||||||||||||||||||
| Commercial, Financial and Agricultural | $ | 40 | $ | 81 | $ | 50 | $ | 199 | $ | 49 | $ | 121 | $ | 88 | |||||||
| Real Estate - Construction | - | - | - | - | - | - | - | ||||||||||||||
| Real Estate - Commercial | 58 | 23 | 45 | 45 | 237 | 81 | 318 | ||||||||||||||
| Real Estate - Residential | 202 | 213 | 277 | 139 | 579 | 415 | 815 | ||||||||||||||
| Real Estate - Home Equity | 39 | 29 | 32 | 237 | 81 | 68 | 140 | ||||||||||||||
| Consumer | 362 | 244 | 195 | 221 | 308 | 606 | 544 | ||||||||||||||
| Total Recoveries | $ | 701 | $ | 590 | $ | 599 | $ | 841 | $ | 1,254 | $ | 1,291 | $ | 1,905 | |||||||
| NET CHARGE-OFFS | $ | 682 | $ | 406 | $ | 777 | $ | (67 | ) | $ | (161 | ) | $ | 1,088 | $ | 631 | |||||
| Net Charge-Offs as a % of Average Loans (1) | 0.17% | 0.10% | 0.20% | (0.02)% | (0.04)% | 0.14% | 0.08% | ||||||||||||||
| RISK ELEMENT ASSETS | |||||||||||||||||||||
| Nonaccruing Loans | $ | 7,966 | $ | 8,298 | $ | 8,533 | $ | 8,614 | $ | 8,214 | |||||||||||
| Other Real Estate Owned | 7,968 | 9,501 | 10,638 | 12,738 | 14,622 | ||||||||||||||||
| Total Nonperforming Assets | $ | 15,934 | $ | 17,799 | $ | 19,171 | $ | 21,352 | $ | 22,836 | |||||||||||
| Past Due Loans 30-89 Days | $ | 3,789 | $ | 3,263 | $ | 6,438 | $ | 5,667 | $ | 3,872 | |||||||||||
| Past Due Loans 90 Days or More | - | - | - | - | - | ||||||||||||||||
| Classified Loans | 41,322 | 40,978 | 41,507 | 43,228 | 45,058 | ||||||||||||||||
| Performing Troubled Debt Restructuring's | $ | 35,436 | $ | 36,555 | $ | 38,233 | $ | 35,046 | $ | 35,526 | |||||||||||
| Nonperforming Loans as a % of Loans | 0.49% | 0.52% | 0.54% | 0.55% | 0.54% | ||||||||||||||||
| Nonperforming Assets as a % of Loans and | |||||||||||||||||||||
| Other Real Estate | 0.97% | 1.11% | 1.21% | 1.35% | 1.48% | ||||||||||||||||
| Nonperforming Assets as a % of Total Assets | 0.57% | 0.61% | 0.67% | 0.78% | 0.83% | ||||||||||||||||
| (1) Annualized | |||||||||||||||||||||
| CAPITAL CITY BANK GROUP, INC. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| AVERAGE BALANCE AND INTEREST RATES(1) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Unaudited | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Second Quarter 2017 | First Quarter 2017 | Fourth Quarter 2016 | Third Quarter 2016 | Second Quarter 2016 | Jun 2017 YTD | Jun 2016 YTD | ||||||||||||||||||||||||||||||||||||||||||||||||||
| (Dollars in thousands) | Average Balance | Interest | Average Rate | Average Balance | Interest | Average Rate | Average Balance | Interest | Average Rate | Average Balance | Interest | Average Rate | Average Balance | Interest | Average Rate | Average Balance | Interest | Average Rate | Average Balance | Interest | Average Rate | |||||||||||||||||||||||||||||||||||
| ASSETS: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Loans, Net of Unearned Interest | $ | 1,608,629 | 18,880 | 4.71 | % | $ | 1,585,561 | 18,137 | 4.64 | % | $ | 1,573,264 | 18,827 | 4.76 | % | $ | 1,555,889 | 18,216 | 4.66 | % | $ | 1,531,777 | 18,233 | 4.79 | % | $ | 1,597,159 | 37,017 | 4.67 | % | $ | 1,519,642 | 36,374 | 4.81 | % | |||||||||||||||||||||
| Investment Securities | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Taxable Investment Securities | 591,825 | 1,898 | 1.28 | 600,528 | 1,784 | 1.20 | 614,560 | 1,726 | 1.12 | 606,606 | 1,632 | 1.07 | 571,343 | 1,539 | 1.08 | 596,153 | 3,682 | 1.24 | 561,718 | 2,959 | 1.03 | |||||||||||||||||||||||||||||||||||
| Tax-Exempt Investment Securities | 100,742 | 414 | 1.64 | 97,965 | 396 | 1.62 | 90,046 | 343 | 1.52 | 89,241 | 327 | 1.47 | 90,030 | 325 | 1.44 | 99,361 | 810 | 1.63 | 92,490 | 657 | 1.42 | |||||||||||||||||||||||||||||||||||
| Total Investment Securities | 692,567 | 2,312 | 1.34 | 698,493 | 2,180 | 1.26 | 704,606 | 2,069 | 1.17 | 695,847 | 1,959 | 1.12 | 661,373 | 1,864 | 1.13 | 695,514 | 4,492 | 1.30 | 654,208 | 3,616 | 1.11 | |||||||||||||||||||||||||||||||||||
| Funds Sold | 200,834 | 533 | 1.06 | 245,153 | 493 | 0.81 | 145,518 | 212 | 0.58 | 166,207 | 212 | 0.51 | 254,627 | 318 | 0.50 | 222,871 | 1,026 | 0.93 | 270,397 | 680 | 0.51 | |||||||||||||||||||||||||||||||||||
| Total Earning Assets | 2,502,030 | $ | 21,725 | 3.48 | % | 2,529,207 | $ | 20,810 | 3.33 | % | 2,423,388 | $ | 21,108 | 3.47 | % | 2,417,943 | $ | 20,387 | 3.35 | % | 2,447,777 | $ | 20,415 | 3.35 | % | 2,515,544 | $ | 42,535 | 3.41 | % | 2,444,247 | $ | 40,670 | 3.35 | % | |||||||||||||||||||||
| Cash and Due From Banks | 52,312 | 48,906 | 50,207 | 45,139 | 46,605 | 50,618 | 47,220 | |||||||||||||||||||||||||||||||||||||||||||||||||
| Allowance for Loan Losses | (13,662 | ) | (13,436 | ) | (14,017 | ) | (14,052 | ) | (14,254 | ) | (13,550 | ) | (14,127 | ) | ||||||||||||||||||||||||||||||||||||||||||
| Other Assets | 276,799 | 280,463 | 283,885 | 285,435 | 287,726 | 278,621 | 288,460 | |||||||||||||||||||||||||||||||||||||||||||||||||
| Total Assets | $ | 2,817,479 | $ | 2,845,140 | $ | 2,743,463 | $ | 2,734,465 | $ | 2,767,854 | $ | 2,831,233 | $ | 2,765,800 | ||||||||||||||||||||||||||||||||||||||||||
| LIABILITIES: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Interest Bearing Deposits | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| NOW Accounts | $ | 806,621 | $ | 222 | 0.11 | % | $ | 880,707 | $ | 134 | 0.06 | % | $ | 782,518 | $ | 78 | 0.04 | % | $ | 774,899 | $ | 78 | 0.04 | % | $ | 762,667 | $ | 67 | 0.04 | % | $ | 843,459 | $ | 356 | 0.09 | % | $ | 780,832 | $ | 136 | 0.03 | % | ||||||||||||||
| Money Market Accounts | 261,726 | 57 | 0.09 | 259,106 | 35 | 0.06 | 257,398 | 31 | 0.05 | 258,183 | 30 | 0.05 | 257,000 | 30 | 0.05 | 260,423 | 92 | 0.07 | 254,723 | 59 | 0.05 | |||||||||||||||||||||||||||||||||||
| Savings Accounts | 322,833 | 39 | 0.05 | 311,212 | 38 | 0.05 | 303,006 | 37 | 0.05 | 297,172 | 37 | 0.05 | 291,210 | 36 | 0.05 | 317,055 | 77 | 0.05 | 284,477 | 70 | 0.05 | |||||||||||||||||||||||||||||||||||
| Time Deposits | 152,811 | 70 | 0.18 | 158,289 | 74 | 0.19 | 161,859 | 78 | 0.19 | 165,324 | 78 | 0.19 | 170,837 | 78 | 0.19 | 155,535 | 144 | 0.19 | 173,947 | 167 | 0.19 | |||||||||||||||||||||||||||||||||||
| Total Interest Bearing Deposits | 1,543,991 | 388 | 0.10 | % | 1,609,314 | 281 | 0.07 | % | 1,504,781 | 224 | 0.06 | % | 1,495,578 | 223 | 0.06 | % | 1,481,714 | 211 | 0.06 | % | 1,576,472 | 669 | 0.09 | % | 1,493,979 | 432 | 0.06 | % | ||||||||||||||||||||||||||||
| Short-Term Borrowings | 8,957 | 17 | 0.75 | % | 12,810 | 45 | 1.43 | % | 14,768 | 57 | 1.54 | % | 12,162 | 43 | 1.39 | % | 53,691 | 38 | 0.28 | % | 10,873 | 62 | 1.15 | % | 60,315 | 48 | 0.16 | % | ||||||||||||||||||||||||||||
| Subordinated Notes Payable | 52,887 | 404 | 3.02 | 52,887 | 379 | 2.86 | 52,887 | 363 | 2.68 | 52,887 | 341 | 2.52 | 54,316 | 343 | 2.50 | 52,887 | 783 | 2.94 | 58,601 | 730 | 2.47 | |||||||||||||||||||||||||||||||||||
| Other Long-Term Borrowings | 16,065 | 117 | 2.93 | 14,468 | 99 | 2.77 | 17,473 | 129 | 2.93 | 23,629 | 177 | 2.98 | 26,721 | 206 | 3.11 | 15,271 | 216 | 2.85 | 27,245 | 422 | 3.11 | |||||||||||||||||||||||||||||||||||
| Total Interest Bearing Liabilities | 1,621,900 | $ | 926 | 0.23 | % | 1,689,479 | $ | 804 | 0.20 | % | 1,589,909 | $ | 773 | 0.20 | % | 1,584,256 | $ | 784 | 0.20 | % | 1,616,442 | $ | 798 | 0.20 | % | 1,655,503 | $ | 1,730 | 0.22 | % | 1,640,140 | $ | 1,632 | 0.20 | % | |||||||||||||||||||||
| Noninterest Bearing Deposits | 829,432 | 797,964 | 802,136 | 793,163 | 794,839 | 813,785 | 773,597 | |||||||||||||||||||||||||||||||||||||||||||||||||
| Other Liabilities | 84,486 | 79,208 | 72,475 | 79,639 | 77,041 | 81,861 | 73,565 | |||||||||||||||||||||||||||||||||||||||||||||||||
| Total Liabilities | 2,535,818 | 2,566,651 | 2,464,520 | 2,457,058 | 2,488,322 | 2,551,149 | 2,487,302 | |||||||||||||||||||||||||||||||||||||||||||||||||
| SHAREOWNERS' EQUITY: | 281,661 | 278,489 | 278,943 | 277,407 | 279,532 | 280,084 | 278,498 | |||||||||||||||||||||||||||||||||||||||||||||||||
| Total Liabilities and Shareowners' Equity | $ | 2,817,479 | $ | 2,845,140 | $ | 2,743,463 | $ | 2,734,465 | $ | 2,767,854 | $ | 2,831,233 | $ | 2,765,800 | ||||||||||||||||||||||||||||||||||||||||||
| Interest Rate Spread | $ | 20,799 | 3.25 | % | $ | 20,006 | 3.14 | % | $ | 20,335 | 3.27 | % | $ | 19,603 | 3.15 | % | $ | 19,617 | 3.15 | % | $ | 40,805 | 3.19 | % | $ | 39,038 | 3.14 | % | ||||||||||||||||||||||||||||
| Interest Income and Rate Earned(1) | 21,725 | 3.48 | 20,810 | 3.33 | 21,108 | 3.47 | 20,387 | 3.35 | 20,415 | 3.35 | 42,535 | 3.41 | 40,670 | 3.35 | ||||||||||||||||||||||||||||||||||||||||||
| Interest Expense and Rate Paid(2) | 926 | 0.15 | 804 | 0.13 | 773 | 0.13 | 784 | 0.13 | 798 | 0.13 | 1,730 | 0.14 | 1,632 | 0.13 | ||||||||||||||||||||||||||||||||||||||||||
| Net Interest Margin | $ | 20,799 | 3.33 | % | $ | 20,006 | 3.21 | % | $ | 20,335 | 3.34 | % | $ | 19,603 | 3.23 | % | $ | 19,617 | 3.22 | % | $ | 40,805 | 3.27 | % | $ | 39,038 | 3.21 | % | ||||||||||||||||||||||||||||
| (1) Interest and average rates are calculated on a tax-equivalent basis using the 35% Federal tax rate. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| (2) Rate calculated based on average earning assets. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||