TALLAHASSEE, Fla., Jan. 23, 2018 (GLOBE NEWSWIRE) -- Capital City Bank Group, Inc. (Nasdaq:CCBG) today reported net income of $3,000, or $0.00 per diluted share for the fourth quarter of 2017 which included a $4.0 million, or $0.24 per diluted share, income tax expense related to the tax reform act commonly known as Tax Cuts and Jobs Act (the “Tax Act”) enacted on December 22, 2017, compared to net income of $4.6 million, or $0.27 per diluted share for the third quarter of 2017, and $3.3 million, or $0.20 per diluted share, for the fourth quarter of 2016.
Net income for the fourth quarter, excluding the impact of the Tax Act (“core earnings”) a non-GAAP financial measure, totaled $4.0 million, or $0.24 per diluted share.
For the full year 2017, net income was 10.9 million, or $0.64 per diluted share, compared to net income of $11.7 million, or $0.69 per diluted share in 2016. Core earnings for 2017 totaled $14.9 million, or $0.88 per diluted share.
Core earnings is presented in this press release to enable investors to better compare period-to-period results due to the effect of the Tax Act on 2017 fourth quarter and full year results of operations. Reconciliations of this and other non-GAAP financial measures in this press release are included in the financial tables at the end of this press release.
Full Year 2017 HIGHLIGHTS
- Core earnings per diluted share of $0.88, 28% increase over 2016
- Significant improvement in operating leverage driven by margin expansion and expense reduction
- Net interest income up $5.0 million, or 6.4%
- Average loan growth of $76 million, or 5.0%
- Noninterest expense down $3.8 million, or 3.3%
- NPAs and classified assets down 42% and 33%, respectively
Fourth Quarter 2017 HIGHLIGHTS
- Core earnings per diluted share of $0.24, down $0.03 sequentially due to other real estate owned gains in the third quarter of 2017
- Continued growth in net interest income, up $0.2 million, or 1.1 % sequentially
- NPAs and classified assets, down sequentially by 12% and 18%, respectively
“This year produced marked improvement in our overall performance as core earnings increased 28 percent,” said William G. Smith, Jr., Chairman, President and CEO. “These results were driven by loan growth, a rising rate environment, improving credit costs and a disciplined approach to managing expenses. Our net interest margin has increased 12 basis points year over year, aided by an asset-sensitive balance sheet and strong core deposit base. Since 2010, we have reduced annual expenses by $24 million and this was our seventh consecutive year of expense reduction. We are proud of these accomplishments and remain focused on strategies that will produce long-term value for our shareowners.”
Compared to the third quarter of 2017, the decrease in core earnings was primarily attributable to a higher loan loss provision of $0.3 million, a $0.2 million increase in noninterest expense, lower noninterest income of $0.1 million, and higher income taxes of $0.2 million, partially offset by higher net interest income of $0.2 million.
Compared to the fourth quarter of 2016, the increase in core earnings reflected higher net interest income of $1.4 million, a $0.7 million decrease in noninterest expense, and a $0.1 million increase in noninterest income, partially offset by higher income taxes of $1.1 million and a $0.4 million increase in the loan loss provision.
For the full year 2017, the increase in core earnings compared to 2016 was attributable to higher net interest income of $5.0 million and a $3.8 million reduction in noninterest expense, partially offset by lower noninterest income of $1.9 million, a $2.3 million increase in income taxes, and a $1.4 million increase in the loan loss provision.
Our return on average assets (“ROA”) was 0.00% and our return on average equity (“ROE”) was 0.00% for the fourth quarter of 2017. Our core earnings ROA was 0.57% and our core earnings ROE was 5.56% for the fourth quarter of 2017. These metrics were 0.65% and 6.33% for the third quarter of 2017, respectively, and 0.48% and 4.70% for the fourth quarter of 2016, respectively. For the full year 2017, our ROA was 0.39% and our ROE was 3.83%. Our core earnings ROA was 0.53% and our core earnings ROE was 5.26% for the full year 2017, compared to 0.43% and 4.22%, respectively, for the same period in 2016.
Discussion of Operating Results
Tax equivalent net interest income for the fourth quarter of 2017 was $21.8 million compared to $21.6 million for the third quarter of 2017 and $20.3 million for the fourth quarter of 2016. During the fourth quarter of 2017, overnight funds increased as a result of the growth in noninterest bearing deposits, and to a lesser degree, seasonal growth in our public funds deposits. A portion of these overnight funds were used to fund growth in the loan and investment portfolios. The increase in tax equivalent net interest income compared to the fourth quarter of 2016 reflected growth in the loan portfolio and higher rates earned on overnight funds, investment securities, and variable rate loans, partially offset by a higher cost on our negotiated rate deposits. For the full year 2017, tax equivalent net interest income totaled $84.2 million compared to $79.0 million for the prior year. 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 as 2016 was a leap year.
The overnight funds rate has increased five times since December 2015 to a target rate of 1.50% at the end of 2017, which positively affected our net interest income due to favorable repricing of our variable and adjustable rate earning assets. Although these increases have also resulted in higher rates paid on our negotiated rate products, we continue to prudently manage our overall cost of funds, which was 18 and 16 basis points for the fourth quarter and full year 2017, respectively. Despite highly competitive fixed-rate loan pricing across most markets, we continue to review our loan pricing and make adjustments where appropriate.
Our net interest margin for the fourth quarter of 2017 was 3.45%, a decrease of three basis points compared to the third quarter of 2017 and an increase of 11 basis points from the fourth quarter of 2016. For the full year 2017, the net interest margin increased 12 basis points to 3.37% compared to 2016. The decrease in the margin compared to the third quarter of 2017 was due to seasonal growth in our overnight funds, resulting in a slightly less favorable asset mix. The increase in the margin compared to the fourth quarter of 2016 and the prior full year was primarily attributable to loan growth, and higher yields on overnight funds and the investment portfolio, partially offset by higher rates on our negotiated rate deposits.
The provision for loan losses for the fourth quarter of 2017 was $0.8 million compared to $0.5 million for the third quarter of 2017 and $0.5 million for the fourth quarter of 2016. The higher provision for the fourth quarter of 2017 reflected higher impaired reserves held for two problem loans. For the full year 2017, the loan loss provision totaled $2.2 million compared to $0.8 million for 2016 with the increase primarily attributable to a higher level of net charge-offs and growth in the loan portfolio. Net loan charge-offs for the fourth quarter of 2017 totaled $0.9 million compared to net loan charge-offs of $0.4 million for the third quarter of 2017 and net loan charge-offs of $0.8 million for the fourth quarter of 2016. For the full year 2017, net loan charge-offs totaled $2.3 million (consisting of gross charge-offs of $4.8 million, less recoveries of $2.5 million), or 0.14% of average loans compared to $1.3 million (consisting of gross charge-offs of $4.7 million, less recoveries of $3.4 million), or 0.09% for 2016. At December 31, 2017, the allowance for loan losses of $13.3 million was 0.80% of outstanding loans (net of overdrafts) and provided coverage of 186% of nonperforming loans compared to 0.82% and 203%, respectively, at September 30, 2017 and 0.86% and 157%, respectively, at December 31, 2016.
Noninterest income for the fourth quarter of 2017 totaled $12.9 million, a decrease of $0.1 million, or 0.8%, from the third quarter of 2017 and an increase of $0.1 million, or 0.9%, over the fourth quarter of 2016. The decrease from the third quarter of 2017 was attributable to lower deposit fees and the increase over the fourth quarter of 2016 reflected higher wealth management fees of $0.4 million, partially offset by lower other income of $0.2 million and deposit fees of $0.1 million. For the full year 2017, noninterest income totaled $51.7 million, a $1.9 million, or 3.6%, decrease from 2016, attributable to lower other income of $2.7 million and deposit fees of $1.0 million, partially offset by higher wealth management fees of $1.2 million and mortgage banking fees of $0.6 million. The decrease in other income was attributable to a $2.5 million gain from the partial retirement of our trust preferred securities in the second quarter of 2016. Lower fees related to data processing services provided to third parties also contributed to the decrease and reflected the discontinuance of this line of business over the past two years with our last client discontinuing service in the fourth quarter of 2017. The reduction in deposit fees reflected lower utilization of our overdraft service product. Growth in assets under management as well as improved sales efforts have resulted in strong growth in wealth management fees. Strong home sales in our markets and a growing market share of residential loan production have driven the improvement in mortgage banking fees.
Noninterest expense for the fourth quarter of 2017 totaled $26.9 million, an increase of $0.2 million, or 0.7%, over the third quarter of 2017, and a $0.7 million, or 2.4%, decrease from the fourth quarter of 2016. The increase over the third quarter of 2017 reflected higher other real estate owned (“OREO”) expense of $0.5 million and other expense of $0.4 million, partially offset by lower compensation expense of $0.6 million and occupancy expense of $0.1 million. The decrease from the fourth quarter of 2016 was attributable to lower compensation expense of $1.0 million and occupancy expense of $0.1 million, partially offset by higher other expense of $0.4 million. For the full year 2017, noninterest expense totaled $109.4 million, a decrease of $3.8 million, or 3.3%, from 2016 attributable to lower OREO expense of $2.5 million, other expense of $0.7 million, occupancy expense of $0.5 million, and compensation expense of $0.1 million. All OREO expense categories (gain/loss on sale, carrying costs, and valuation adjustments) declined as we continued efforts to liquidate our remaining properties. Reduction in other cycle related expenses (legal expense and FDIC insurance expense) drove the decline in other expense. The decrease in occupancy expense reflected our continuing efforts to optimize our banking office structure and operational processes. The decrease in compensation expense reflected lower salary expense of $1.2 million partially offset by higher associate benefit expense of $1.1 million. Continued headcount attrition drove the decline in salary expense and the increase in associate benefit expense reflected higher pension plan expense attributable to utilization of a lower discount rate for plan liabilities and to a lesser extent higher associate insurance expense and stock compensation expense.
We realized income tax expense of $6.7 million for the fourth quarter of 2017 which included a $4.0 million discrete tax expense related to the Tax Act. Excluding the discrete tax expense, income tax totaled $2.7 million (39% effective rate) compared to $2.5 million (35% effective rate) for the third quarter of 2017 and $1.5 million (32% effective rate) for the fourth quarter of 2016. For the full year 2017, income tax expense totaled $12.2 million, including the aforementioned $4.0 million discrete tax expense related to the Tax Act. Excluding the discrete tax expense, income tax totaled $8.2 million (36% effective rate) compared to $5.9 million (33% effective rate) for 2016. Income tax expense for the fourth quarter included a $0.3 million write-off of a deferred tax asset related to a cancelled stock award. Income tax for the full year 2017 also included income tax benefits realized in the second quarter related to stock based compensation awards. Absent future discrete events, we anticipate that our effective tax will approximate 24% due to a lower federal tax rate related to the Tax Act.
Discussion of Financial Condition
Average earning assets were $2.512 billion for the fourth quarter of 2017, an increase of $45.7 million, or 1.9%, over the third quarter of 2017, and an increase of $88.6 million, or 3.7%, over the fourth quarter of 2016. The change in earning assets over both periods reflected a higher level of total deposits.
We maintained an average net overnight funds (deposits with banks plus fed funds sold less fed funds purchased) sold position of $174.6 million during the fourth quarter of 2017 compared to an average net overnight funds sold position of $140.7 million in the third quarter of 2017 and $145.5 million in the fourth quarter of 2016. The increase in net overnight funds compared to the prior periods reflected increases in noninterest bearing deposits, partially offset by increases in the loan portfolio and/or the investment portfolio.
Average loans increased $2.2 million, or 0.1% when compared to the third quarter of 2017, and have grown $67.5 million, or 4.3% when compared to the fourth quarter of 2016. The average increase compared to the third quarter of 2017 primarily reflected growth in construction and indirect consumer loans, partially offset by a reduction in the remaining loan types. Average growth over the fourth quarter of 2016 was experienced in all loan products, with the exception of commercial loans, home equity loans, and consumer direct loans. A portion of the increase compared to the fourth quarter 2016 was due to strategic loan purchases of approximately $26.8 million in adjustable residential real estate loans and $16.4 million in fixed and adjustable rate commercial real estate loans.
We continue to make minor modifications on some of our lending programs to try and mitigate the impact that consumer and business deleveraging has had on our portfolio. These programs, coupled with economic improvements in our anchor markets and strategic loan purchases, have helped to increase overall loan growth.
Nonperforming assets (nonaccrual loans and OREO) totaled $11.1 million at December 31, 2017, a decrease of $1.4 million, or 12%, from September 30, 2017 and $8.1 million, or 42%, from December 31, 2016. Nonaccrual loans totaled $7.2 million at December 31, 2017, a $0.6 million increase over September 30, 2017 and a $1.4 million decrease from December 31, 2016. Nonaccrual loan additions totaled $5.6 million in the fourth quarter of 2017 and $14.1 million for the full year 2017, which compares to $3.9 million and $13.1 million, respectively, for the same periods of 2016. The balance of OREO totaled $3.9 million at December 31, 2017, a decrease of $2.0 million and $6.7 million, respectively, from September 30, 2017 and December 31, 2016. For the fourth quarter of 2017, we added properties totaling $0.4 million, sold properties totaling $2.2 million, and recorded valuation adjustments totaling $0.2 million. For the full year 2017, we added properties totaling $2.4 million, sold properties totaling $7.5 million, recorded valuation adjustments totaling $1.3 million, and miscellaneous adjustments totaling $0.3 million. Nonperforming assets represented 0.38% of total assets at December 31, 2017 compared to 0.45% at September 30, 2017 and 0.67% at December 31, 2016.
Average total deposits were $2.378 billion for the fourth quarter of 2017, an increase of $49.2 million, or 2.1%, over the third quarter of 2017, and an increase of $71.5 million, or 3.1% over the fourth quarter of 2016. The increase in deposits when compared to the prior periods reflected growth in all deposit products except money market accounts and certificates of deposit. Average total deposits year-over-year reflected strong growth in noninterest bearing deposits and savings accounts. Deposit levels remain strong, particularly given the increases in the fed funds rate. Average core deposits continue to experience growth. Competitive rates are monitored on an ongoing basis as a prudent pricing discipline remains the key to managing our mix of deposits.
Average borrowings decreased $2.5 million compared to the third quarter of 2017, and decreased $9.4 million compared to the fourth quarter 2016. Declines over both prior periods were primarily due to payoffs of FHLB advances.
Shareowners’ equity was $284.4 million at December 31, 2017, compared to $285.2 million at September 30, 2017 and $275.2 million at December 31, 2016. Our leverage ratio was 10.26%, 10.48%, and 10.23%, respectively, for these periods. Further, at December 31, 2017, our risk-adjusted capital ratio was 16.77% compared to 16.96% and 16.28% at September 30, 2017 and December 31, 2016, respectively. Our common equity tier 1 ratio was 13.09% at December 31, 2017, compared to 13.26% at September 30, 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. The $4.0 million deferred tax re-measurement adjustment recorded in the fourth quarter of 2017 due to the Tax Act unfavorably impacted our common equity tier 1 and risk-adjusted capital ratio by approximately 26 basis points.
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 $2.9 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.
In our discussion of financial performance, we use core earnings for the fourth quarter and full year 2017. We believe this measure will enhance the understanding of the Company’s core business and performance without the impact of the deferred tax re-measurement that was required with the enactment of the Tax Act.
The GAAP to non-GAAP reconciliations are provided below.
| (Dollars in Thousands, except per share data) | Dec 31, 2017 | Sep 30, 2017 | Jun 30, 2017 | Mar 31, 2017 | Dec 31, 2016 | |||||||||||
| TANGIBLE COMMON EQUITY RATIO | ||||||||||||||||
| Shareowners' Equity (GAAP) | $ | 284,425 | $ | 285,201 | $ | 281,513 | $ | 278,059 | $ | 275,168 | ||||||
| Less: Goodwill (GAAP) | 84,811 | 84,811 | 84,811 | 84,811 | 84,811 | |||||||||||
| Tangible Shareowners' Equity (non-GAAP) | A | 199,614 | 200,390 | 196,702 | 193,248 | 190,357 | ||||||||||
| Total Assets (GAAP) | 2,899,192 | 2,790,842 | 2,814,843 | 2,895,531 | 2,845,197 | |||||||||||
| Less: Goodwill (GAAP) | 84,811 | 84,811 | 84,811 | 84,811 | 84,811 | |||||||||||
| Tangible Assets (non-GAAP) | B | $ | 2,814,381 | $ | 2,706,031 | $ | 2,730,032 | $ | 2,810,720 | $ | 2,760,386 | |||||
| Tangible Common Equity Ratio (non-GAAP) | A/B | 7.09 | % | 7.41 | % | 7.21 | % | 6.88 | % | 6.90 | % | |||||
| Actual Diluted Shares Outstanding (GAAP) | C | 17,071 | 17,045 | 17,025 | 16,979 | 16,949 | ||||||||||
| Tangible Book Value per Diluted Share (non-GAAP) | A/C | $ | 11.69 | $ | 11.76 | $ | 11.55 | $ | 11.38 | $ | 11.23 | |||||
| Three Months Ended | Twelve Months Ended | |||||||
| (Dollars in Thousands, except per share data) | Dec 31, 2017 | Dec 31, 2017 | ||||||
| CORE EARNINGS | ||||||||
| Net Income (GAAP) | $ | 3 | $ | 10,863 | ||||
| Plus: Deferred Tax Re-Measurement | 4,033 | 4,033 | ||||||
| Net Income Core Earnings (non-GAAP) | 4,036 | 14,896 | ||||||
| Earnings Per Diluted Share (GAAP) | 0.00 | 0.64 | ||||||
| Plus: Deferred Tax Re-Measurement | 0.24 | 0.24 | ||||||
| Earnings Per Diluted Share Core Earnings (non-GAAP) | 0.24 | 0.88 | ||||||
| Average Assets | 2,822,464 | 2,816,099 | ||||||
| Average Shareowner's Equity | $ | 288,051 | $ | 283,406 | ||||
| ROA (GAAP) | 0.00 | % | 0.39 | % | ||||
| Plus: Deferred Tax Re-Measurement | 0.57 | % | 0.14 | % | ||||
| Core Earnings ROA (non-GAAP) | 0.57 | % | 0.53 | % | ||||
| ROE (GAAP) | 0.00 | % | 3.83 | % | ||||
| Plus: Deferred Tax Re-Measurement | 5.56 | % | 1.43 | % | ||||
| Core Earnings ROE (non-GAAP) | 5.56 | % | 5.26 | % | ||||
| CAPITAL CITY BANK GROUP, INC. | |||||||||||||||
| EARNINGS HIGHLIGHTS | |||||||||||||||
| Unaudited | |||||||||||||||
| Three Months Ended | Twelve Months Ended | ||||||||||||||
| (Dollars in thousands, except per share data) | Dec 31, 2017 | Sep 30, 2017 | Dec 31, 2016 | Dec 31, 2017 | Dec 31, 2016 | ||||||||||
| EARNINGS | |||||||||||||||
| Net Income | $ | 3 | $ | 4,555 | $ | 3,296 | $ | 10,863 | $ | 11,746 | |||||
| Diluted Net Income Per Share | $ | 0.00 | $ | 0.27 | $ | 0.20 | $ | 0.64 | $ | 0.69 | |||||
| PERFORMANCE | |||||||||||||||
| Return on Average Assets | 0.00 | % | 0.65 | % | 0.48 | % | 0.39 | % | 0.43 | % | |||||
| Return on Average Equity | 0.00 | % | 6.33 | % | 4.70 | % | 3.83 | % | 4.22 | % | |||||
| Net Interest Margin | 3.45 | % | 3.48 | % | 3.34 | % | 3.37 | % | 3.25 | % | |||||
| Noninterest Income as % of Operating Revenue | 37.51 | % | 37.94 | % | 38.91 | % | 38.41 | % | 40.78 | % | |||||
| Efficiency Ratio | 77.50 | % | 77.21 | % | 83.23 | % | 80.50 | % | 85.34 | % | |||||
| CAPITAL ADEQUACY | |||||||||||||||
| Tier 1 Capital | 16.01 | % | 16.19 | % | 15.51 | % | 16.01 | % | 15.51 | % | |||||
| Total Capital | 16.77 | % | 16.96 | % | 16.28 | % | 16.77 | % | 16.28 | % | |||||
| Tangible Common Equity (1) | 7.09 | % | 7.41 | % | 6.90 | % | 7.09 | % | 6.90 | % | |||||
| Leverage | 10.26 | % | 10.48 | % | 10.23 | % | 10.26 | % | 10.23 | % | |||||
| Common Equity Tier 1 | 13.09 | % | 13.26 | % | 12.61 | % | 13.09 | % | 12.61 | % | |||||
| Equity to Assets | 9.81 | % | 10.22 | % | 9.67 | % | 9.81 | % | 9.67 | % | |||||
| ASSET QUALITY | |||||||||||||||
| Allowance as % of Non-Performing Loans | 185.87 | % | 203.39 | % | 157.40 | % | 185.87 | % | 157.40 | % | |||||
| Allowance as a % of Loans | 0.80 | % | 0.82 | % | 0.86 | % | 0.80 | % | 0.86 | % | |||||
| Net Charge-Offs as % of Average Loans | 0.21 | % | 0.10 | % | 0.20 | % | 0.14 | % | 0.09 | % | |||||
| Nonperforming Assets as % of Loans and ORE | 0.67 | % | 0.76 | % | 1.21 | % | 0.67 | % | 1.21 | % | |||||
| Nonperforming Assets as % of Total Assets | 0.38 | % | 0.45 | % | 0.67 | % | 0.38 | % | 0.67 | % | |||||
| STOCK PERFORMANCE | |||||||||||||||
| High | $ | 26.01 | $ | 24.58 | $ | 23.15 | $ | 26.01 | $ | 23.15 | |||||
| Low | 22.21 | 19.60 | 14.29 | 17.68 | 12.83 | ||||||||||
| Close | $ | 22.94 | $ | 24.01 | $ | 20.48 | $ | 22.94 | $ | 20.48 | |||||
| Average Daily Trading Volume | 19,112 | 29,551 | 23,371 | 23,793 | 21,473 | ||||||||||
| (1) Tangible common equity ratio is a non-GAAP financial measure. For additional information, including a reconciliation to GAAP, refer to | |||||||||||||||
| page 5. | |||||||||||||||
| CAPITAL CITY BANK GROUP, INC. | |||||||||||||||
| CONSOLIDATED STATEMENT OF FINANCIAL CONDITION | |||||||||||||||
| Unaudited | |||||||||||||||
| 2017 | 2016 | ||||||||||||||
| (Dollars in thousands) | Fourth Quarter | Third Quarter | Second Quarter | First Quarter | Fourth Quarter | ||||||||||
| ASSETS | |||||||||||||||
| Cash and Due From Banks | $ | 58,419 | $ | 50,420 | $ | 72,801 | $ | 47,650 | $ | 48,268 | |||||
| Funds Sold and Interest Bearing Deposits | 227,023 | 140,694 | 162,377 | 290,897 | 247,779 | ||||||||||
| Total Cash and Cash Equivalents | 285,442 | 191,114 | 235,178 | 338,547 | 296,047 | ||||||||||
| Investment Securities Available for Sale | 480,911 | 510,846 | 529,686 | 541,102 | 522,734 | ||||||||||
| Investment Securities Held to Maturity | 216,679 | 184,262 | 157,074 | 158,515 | 177,365 | ||||||||||
| Total Investment Securities | 697,590 | 695,108 | 686,760 | 699,617 | 700,099 | ||||||||||
| Loans Held for Sale | 4,817 | 7,800 | 8,213 | 7,498 | 10,886 | ||||||||||
| Loans, Net of Unearned Interest | |||||||||||||||
| Commercial, Financial, & Agricultural | 218,166 | 215,963 | 213,544 | 214,595 | 216,404 | ||||||||||
| Real Estate - Construction | 77,966 | 67,813 | 67,331 | 59,938 | 58,443 | ||||||||||
| Real Estate - Commercial | 535,707 | 527,331 | 519,140 | 503,868 | 503,978 | ||||||||||
| Real Estate - Residential | 308,159 | 306,272 | 302,072 | 295,406 | 272,895 | ||||||||||
| Real Estate - Home Equity | 229,513 | 228,499 | 230,995 | 231,300 | 236,512 | ||||||||||
| Consumer | 278,622 | 273,670 | 269,539 | 268,921 | 262,735 | ||||||||||
| Other Loans | 3,747 | 9,311 | 17,057 | 9,586 | 8,614 | ||||||||||
| Overdrafts | 1,612 | 1,479 | 1,518 | 1,345 | 1,708 | ||||||||||
| Total Loans, Net of Unearned Interest | 1,653,492 | 1,630,338 | 1,621,196 | 1,584,959 | 1,561,289 | ||||||||||
| Allowance for Loan Losses | (13,307 | ) | (13,339 | ) | (13,242 | ) | (13,335 | ) | (13,431 | ) | |||||
| Loans, Net | 1,640,185 | 1,616,999 | 1,607,954 | 1,571,624 | 1,547,858 | ||||||||||
| Premises and Equipment, Net | 91,698 | 92,345 | 92,495 | 93,755 | 95,476 | ||||||||||
| Goodwill | 84,811 | 84,811 | 84,811 | 84,811 | 84,811 | ||||||||||
| Other Real Estate Owned | 3,941 | 5,987 | 7,968 | 9,501 | 10,638 | ||||||||||
| Other Assets | 90,708 | 96,678 | 91,464 | 90,178 | 99,382 | ||||||||||
| Total Other Assets | 271,158 | 279,821 | 276,738 | 278,245 | 290,307 | ||||||||||
| Total Assets | $ | 2,899,192 | $ | 2,790,842 | $ | 2,814,843 | $ | 2,895,531 | $ | 2,845,197 | |||||
| LIABILITIES | |||||||||||||||
| Deposits: | |||||||||||||||
| Noninterest Bearing Deposits | $ | 874,583 | $ | 870,644 | $ | 842,314 | $ | 836,011 | $ | 791,182 | |||||
| NOW Accounts | 877,820 | 749,816 | 787,090 | 882,605 | 904,014 | ||||||||||
| Money Market Accounts | 239,212 | 249,964 | 265,032 | 263,080 | 252,800 | ||||||||||
| Regular Savings Accounts | 335,140 | 329,742 | 327,560 | 321,160 | 304,680 | ||||||||||
| Certificates of Deposit | 143,122 | 147,451 | 149,937 | 156,449 | 159,610 | ||||||||||
| Total Deposits | 2,469,877 | 2,347,617 | 2,371,933 | 2,459,305 | 2,412,286 | ||||||||||
| Short-Term Borrowings | 7,480 | 6,777 | 6,105 | 7,603 | 12,749 | ||||||||||
| Subordinated Notes Payable | 52,887 | 52,887 | 52,887 | 52,887 | 52,887 | ||||||||||
| Other Long-Term Borrowings | 13,967 | 15,047 | 15,631 | 16,460 | 14,881 | ||||||||||
| Other Liabilities | 70,556 | 83,313 | 86,774 | 81,217 | 77,226 | ||||||||||
| Total Liabilities | 2,614,767 | 2,505,641 | 2,533,330 | 2,617,472 | 2,570,029 | ||||||||||
| SHAREOWNERS' EQUITY | |||||||||||||||
| Common Stock | 170 | 170 | 170 | 170 | 168 | ||||||||||
| Additional Paid-In Capital | 36,674 | 35,892 | 35,522 | 34,859 | 34,188 | ||||||||||
| Retained Earnings | 273,829 | 275,013 | 271,646 | 268,934 | 267,037 | ||||||||||
| Accumulated Other Comprehensive Loss, Net of Tax | (26,248 | ) | (25,874 | ) | (25,825 | ) | (25,904 | ) | (26,225 | ) | |||||
| Total Shareowners' Equity | 284,425 | 285,201 | 281,513 | 278,059 | 275,168 | ||||||||||
| Total Liabilities and Shareowners' Equity | $ | 2,899,192 | $ | 2,790,842 | $ | 2,814,843 | $ | 2,895,531 | $ | 2,845,197 | |||||
| OTHER BALANCE SHEET DATA | |||||||||||||||
| Earning Assets | $ | 2,582,922 | $ | 2,473,940 | $ | 2,478,546 | $ | 2,582,971 | $ | 2,520,053 | |||||
| Interest Bearing Liabilities | 1,669,628 | 1,551,684 | 1,604,242 | 1,700,244 | 1,701,621 | ||||||||||
| Book Value Per Diluted Share | $ | 16.66 | $ | 16.73 | $ | 16.54 | $ | 16.38 | $ | 16.23 | |||||
| Tangible Book Value Per Diluted Share(1) | 11.69 | 11.76 | 11.55 | 11.38 | 11.23 | ||||||||||
| Actual Basic Shares Outstanding | 16,989 | 16,966 | 16,964 | 16,954 | 16,845 | ||||||||||
| Actual Diluted Shares Outstanding | 17,071 | 17,045 | 17,025 | 16,979 | 16,949 | ||||||||||
| (1) Tangible book value per diluted share is a non-GAAP financial measure. For additional information, including a reconciliation to GAAP, refer to page 5. | |||||||||||||||
| CAPITAL CITY BANK GROUP, INC. | |||||||||||||||
| CONSOLIDATED STATEMENT OF OPERATIONS | |||||||||||||||
| Unaudited | |||||||||||||||
| Twelve Months Ended | |||||||||||||||
| 2017 | 2016 | December 31, | |||||||||||||
| (Dollars in thousands, except per share data) | Fourth Quarter | Third Quarter | Second Quarter | First Quarter | Fourth Quarter | 2017 | 2016 | ||||||||
| INTEREST INCOME | |||||||||||||||
| Interest and Fees on Loans | $ | 19,513 | $ | 19,479 | $ | 18,720 | $ | 18,005 | $ | 18,671 | $ | 75,717 | $ | 72,867 | |
| Investment Securities | 2,520 | 2,416 | 2,169 | 2,042 | 1,949 | 9,147 | 7,183 | ||||||||
| Funds Sold | 594 | 446 | 533 | 493 | 212 | 2,066 | 1,104 | ||||||||
| Total Interest Income | 22,627 | 22,341 | 21,422 | 20,540 | 20,832 | 86,930 | 81,154 | ||||||||
| INTEREST EXPENSE | |||||||||||||||
| Deposits | 590 | 530 | 388 | 281 | 224 | 1,789 | 879 | ||||||||
| Short-Term Borrowings | 5 | 15 | 17 | 45 | 57 | 82 | 148 | ||||||||
| Subordinated Notes Payable | 431 | 420 | 404 | 379 | 363 | 1,634 | 1,434 | ||||||||
| Other Long-Term Borrowings | 112 | 115 | 117 | 99 | 129 | 443 | 728 | ||||||||
| Total Interest Expense | 1,138 | 1,080 | 926 | 804 | 773 | 3,948 | 3,189 | ||||||||
| Net Interest Income | 21,489 | 21,261 | 20,496 | 19,736 | 20,059 | 82,982 | 77,965 | ||||||||
| Provision for Loan Losses | 826 | 490 | 589 | 310 | 464 | 2,215 | 819 | ||||||||
| Net Interest Income after Provision for Loan Losses | 20,663 | 20,771 | 19,907 | 19,426 | 19,595 | 80,767 | 77,146 | ||||||||
| NONINTEREST INCOME | |||||||||||||||
| Deposit Fees | 5,040 | 5,153 | 5,052 | 5,090 | 5,238 | 20,335 | 21,332 | ||||||||
| Bank Card Fees | 2,830 | 2,688 | 2,870 | 2,803 | 2,754 | 11,191 | 11,221 | ||||||||
| Wealth Management Fees | 2,172 | 2,197 | 2,073 | 1,842 | 1,773 | 8,284 | 7,029 | ||||||||
| Mortgage Banking Fees | 1,410 | 1,480 | 1,556 | 1,308 | 1,392 | 5,754 | 5,192 | ||||||||
| Other | 1,445 | 1,478 | 1,584 | 1,675 | 1,621 | 6,182 | 8,907 | ||||||||
| Total Noninterest Income | 12,897 | 12,996 | 13,135 | 12,718 | 12,778 | 51,746 | 53,681 | ||||||||
| NONINTEREST EXPENSE | |||||||||||||||
| Compensation | 15,740 | 16,349 | 16,292 | 16,496 | 16,699 | 64,877 | 64,984 | ||||||||
| Occupancy, Net | 4,400 | 4,501 | 4,555 | 4,381 | 4,519 | 17,837 | 18,296 | ||||||||
| Other Real Estate, Net | 355 | (118 | ) | 315 | 583 | 343 | 1,135 | 3,649 | |||||||
| Other | 6,402 | 5,975 | 6,759 | 6,462 | 5,999 | 25,598 | 26,285 | ||||||||
| Total Noninterest Expense | 26,897 | 26,707 | 27,921 | 27,922 | 27,560 | 109,447 | 113,214 | ||||||||
| OPERATING PROFIT | 6,663 | 7,060 | 5,121 | 4,222 | 4,813 | 23,066 | 17,613 | ||||||||
| Income Tax Expense | 6,660 | 2,505 | 1,560 | 1,478 | 1,517 | 12,203 | 5,867 | ||||||||
| NET INCOME | $ | 3 | $ | 4,555 | $ | 3,561 | $ | 2,744 | $ | 3,296 | $ | 10,863 | $ | 11,746 | |
| PER SHARE DATA | |||||||||||||||
| Basic Net Income | $ | 0.00 | $ | 0.27 | $ | 0.21 | $ | 0.16 | $ | 0.20 | $ | 0.64 | $ | 0.69 | |
| Diluted Net Income | 0.00 | 0.27 | 0.21 | 0.16 | 0.20 | 0.64 | 0.69 | ||||||||
| Cash Dividend | $ | 0.07 | $ | 0.07 | $ | 0.05 | $ | 0.05 | $ | 0.05 | $ | 0.24 | $ | 0.17 | |
| AVERAGE SHARES | |||||||||||||||
| Basic | 16,967 | 16,965 | 16,955 | 16,919 | 16,809 | 16,952 | 16,989 | ||||||||
| Diluted | 17,050 | 17,044 | 17,016 | 16,944 | 16,913 | 17,013 | 17,061 | ||||||||
| CAPITAL CITY BANK GROUP, INC. | |||||||||||||||||||||
| ALLOWANCE FOR LOAN LOSSES | |||||||||||||||||||||
| AND RISK ELEMENT ASSETS | |||||||||||||||||||||
| Unaudited | |||||||||||||||||||||
| Twelve Months Ended | |||||||||||||||||||||
| 2017 | 2016 | December 31, | |||||||||||||||||||
| (Dollars in thousands, except per share data) | Fourth Quarter | Third Quarter | Second Quarter | First Quarter | Fourth Quarter | 2017 | 2016 | ||||||||||||||
| ALLOWANCE FOR LOAN LOSSES | |||||||||||||||||||||
| Balance at Beginning of Period | $ | 13,339 | $ | 13,242 | $ | 13,335 | $ | 13,431 | $ | 13,744 | $ | 13,431 | $ | 13,953 | |||||||
| Provision for Loan Losses | 826 | 490 | 589 | 310 | 464 | 2,215 | 819 | ||||||||||||||
| Net Charge-Offs | 858 | 393 | 682 | 406 | 777 | 2,339 | 1,341 | ||||||||||||||
| Balance at End of Period | $ | 13,307 | $ | 13,339 | $ | 13,242 | $ | 13,335 | $ | 13,431 | $ | 13,307 | $ | 13,431 | |||||||
| As a % of Loans | 0.80 | % | 0.82 | % | 0.81 | % | 0.84 | % | 0.86 | % | 0.80 | % | 0.86 | % | |||||||
| As a % of Nonperforming Loans | 185.87 | % | 203.39 | % | 166.23 | % | 160.70 | % | 157.40 | % | 185.87 | % | 157.40 | % | |||||||
| CHARGE-OFFS | |||||||||||||||||||||
| Commercial, Financial and Agricultural | $ | 664 | $ | 276 | $ | 324 | $ | 93 | $ | 377 | $ | 1,357 | $ | 861 | |||||||
| Real Estate - Construction | - | - | - | - | - | - | - | ||||||||||||||
| Real Estate - Commercial | 42 | 94 | 478 | 71 | 70 | 685 | 349 | ||||||||||||||
| Real Estate - Residential | 126 | 125 | 44 | 116 | 120 | 411 | 899 | ||||||||||||||
| Real Estate - Home Equity | 48 | 50 | 0 | 92 | 38 | 190 | 450 | ||||||||||||||
| Consumer | 577 | 455 | 537 | 624 | 771 | 2,193 | 2,127 | ||||||||||||||
| Total Charge-Offs | $ | 1,457 | $ | 1,000 | $ | 1,383 | $ | 996 | $ | 1,376 | $ | 4,836 | $ | 4,686 | |||||||
| RECOVERIES | |||||||||||||||||||||
| Commercial, Financial and Agricultural | $ | 113 | $ | 79 | $ | 40 | $ | 81 | $ | 50 | $ | 313 | $ | 337 | |||||||
| Real Estate - Construction | - | 50 | - | - | - | 50 | - | ||||||||||||||
| Real Estate - Commercial | 24 | 69 | 58 | 23 | 45 | 174 | 408 | ||||||||||||||
| Real Estate - Residential | 141 | 60 | 202 | 213 | 277 | 616 | 1,231 | ||||||||||||||
| Real Estate - Home Equity | 67 | 84 | 39 | 29 | 32 | 219 | 409 | ||||||||||||||
| Consumer | 254 | 265 | 362 | 244 | 195 | 1,125 | 960 | ||||||||||||||
| Total Recoveries | $ | 599 | $ | 607 | $ | 701 | $ | 590 | $ | 599 | $ | 2,497 | $ | 3,345 | |||||||
| NET CHARGE-OFFS | $ | 858 | $ | 393 | $ | 682 | $ | 406 | $ | 777 | $ | 2,339 | $ | 1,341 | |||||||
| Net Charge-Offs as a % of Average Loans (1) | 0.21 | % | 0.10 | % | 0.17 | % | 0.10 | % | 0.20 | % | 0.14 | % | 0.09 | % | |||||||
| RISK ELEMENT ASSETS | |||||||||||||||||||||
| Nonaccruing Loans | $ | 7,159 | $ | 6,558 | $ | 7,966 | $ | 8,298 | $ | 8,533 | |||||||||||
| Other Real Estate Owned | 3,941 | 5,987 | 7,968 | 9,501 | 10,638 | ||||||||||||||||
| Total Nonperforming Assets | $ | 11,100 | $ | 12,545 | $ | 15,934 | $ | 17,799 | $ | 19,171 | |||||||||||
| Past Due Loans 30-89 Days | $ | 4,579 | $ | 5,687 | $ | 3,789 | $ | 3,263 | $ | 6,438 | |||||||||||
| Past Due Loans 90 Days or More | - | - | - | - | - | ||||||||||||||||
| Classified Loans | 31,002 | 36,545 | 41,322 | 40,978 | 41,507 | ||||||||||||||||
| Performing Troubled Debt Restructuring's | $ | 32,164 | $ | 33,427 | $ | 35,436 | $ | 36,555 | $ | 38,233 | |||||||||||
| Nonperforming Loans as a % of Loans | 0.43 | % | 0.40 | % | 0.49 | % | 0.52 | % | 0.54 | % | |||||||||||
| Nonperforming Assets as a % of | |||||||||||||||||||||
| Loans and Other Real Estate | 0.67 | % | 0.76 | % | 0.97 | % | 1.11 | % | 1.21 | % | |||||||||||
| Nonperforming Assets as a % of Total Assets | 0.38 | % | 0.45 | % | 0.57 | % | 0.61 | % | 0.67 | % | |||||||||||
| (1) Annualized | |||||||||||||||||||||
| CAPITAL CITY BANK GROUP, INC. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| AVERAGE BALANCE AND INTEREST RATES(1) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Unaudited | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Fourth Quarter 2017 | Third Quarter 2017 | Second Quarter 2017 | First Quarter 2017 | Fourth Quarter 2016 | Dec 2017 YTD | Dec 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 | $ | 1,640,738 | 19,696 | 4.76 | % | $ | 1,638,578 | 19,672 | 4.76 | % | $ | 1,608,629 | 18,880 | 4.71 | % | $ | 1,585,561 | 18,137 | 4.64 | % | $ | 1,573,264 | 18,827 | 4.76 | % | $ | 1,618,583 | 76,385 | 4.72 | % | $ | 1,542,232 | 73,417 | 4.76 | % | |||||||||||||||||||||
| Investment Securities | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Taxable Investment Securities | 602,353 | 2,263 | 1.50 | 588,518 | 2,150 | 1.45 | 591,825 | 1,898 | 1.28 | 600,528 | 1,784 | 1.20 | 614,560 | 1,726 | 1.12 | 595,790 | 8,095 | 1.36 | 586,284 | 6,317 | 1.08 | |||||||||||||||||||||||||||||||||||
| Tax-Exempt Investment Securities | 94,329 | 393 | 1.67 | 98,463 | 407 | 1.65 | 100,742 | 414 | 1.64 | 97,965 | 396 | 1.62 | 90,046 | 343 | 1.52 | 97,867 | 1,610 | 1.65 | 91,059 | 1,327 | 1.46 | |||||||||||||||||||||||||||||||||||
| Total Investment Securities | 696,682 | 2,656 | 1.52 | 686,981 | 2,557 | 1.48 | 692,567 | 2,312 | 1.34 | 698,493 | 2,180 | 1.26 | 704,606 | 2,069 | 1.17 | 693,657 | 9,705 | 1.40 | 677,343 | 7,644 | 1.13 | |||||||||||||||||||||||||||||||||||
| Funds Sold | 174,565 | 594 | 1.35 | 140,728 | 446 | 1.26 | 200,834 | 533 | 1.06 | 245,153 | 493 | 0.81 | 145,518 | 212 | 0.58 | 189,991 | 2,066 | 1.09 | 212,817 | 1,104 | 0.52 | |||||||||||||||||||||||||||||||||||
| Total Earning Assets | 2,511,985 | $ | 22,946 | 3.63 | % | 2,466,287 | $ | 22,675 | 3.65 | % | 2,502,030 | $ | 21,725 | 3.48 | % | 2,529,207 | $ | 20,810 | 3.33 | % | 2,423,388 | $ | 21,108 | 3.47 | % | 2,502,231 | $ | 88,156 | 3.52 | % | 2,432,392 | $ | 82,165 | 3.38 | % | |||||||||||||||||||||
| Cash and Due From Banks | 51,235 | 51,880 | 52,312 | 48,906 | 50,207 | 51,091 | 47,447 | |||||||||||||||||||||||||||||||||||||||||||||||||
| Allowance for Loan Losses | (13,524 | ) | (13,542 | ) | (13,662 | ) | (13,436 | ) | (14,017 | ) | (13,541 | ) | (14,080 | ) | ||||||||||||||||||||||||||||||||||||||||||
| Other Assets | 272,768 | 275,335 | 276,799 | 280,463 | 283,885 | 276,318 | 286,550 | |||||||||||||||||||||||||||||||||||||||||||||||||
| Total Assets | $ | 2,822,464 | $ | 2,779,960 | $ | 2,817,479 | $ | 2,845,140 | $ | 2,743,463 | $ | 2,816,099 | $ | 2,752,309 | ||||||||||||||||||||||||||||||||||||||||||
| LIABILITIES: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Interest Bearing Deposits | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| NOW Accounts | $ | 782,133 | $ | 400 | 0.20 | % | $ | 755,620 | $ | 339 | 0.18 | % | $ | 806,621 | $ | 222 | 0.11 | % | $ | 880,707 | $ | 134 | 0.06 | % | $ | 782,518 | $ | 78 | 0.04 | % | $ | 805,861 | $ | 1,094 | 0.14 | % | $ | 779,764 | $ | 292 | 0.04 | % | ||||||||||||||
| Money Market Accounts | 249,953 | 80 | 0.13 | 262,486 | 80 | 0.12 | 261,726 | 57 | 0.09 | 259,106 | 35 | 0.06 | 257,398 | 31 | 0.05 | 258,304 | 252 | 0.10 | 256,265 | 120 | 0.05 | |||||||||||||||||||||||||||||||||||
| Savings Accounts | 333,703 | 41 | 0.05 | 327,675 | 40 | 0.05 | 322,833 | 39 | 0.05 | 311,212 | 38 | 0.05 | 303,006 | 37 | 0.05 | 323,928 | 159 | 0.05 | 292,326 | 144 | 0.05 | |||||||||||||||||||||||||||||||||||
| Time Deposits | 145,622 | 69 | 0.19 | 148,652 | 71 | 0.19 | 152,811 | 70 | 0.18 | 158,289 | 74 | 0.19 | 161,859 | 78 | 0.19 | 151,301 | 284 | 0.19 | 168,741 | 323 | 0.19 | |||||||||||||||||||||||||||||||||||
| Total Interest Bearing Deposits | 1,511,411 | 590 | 0.16 | % | 1,494,433 | 530 | 0.14 | % | 1,543,991 | - | 388 | 0.10 | % | 1,609,314 | - | 281 | 0.07 | % | 1,504,781 | 224 | 0.06 | % | 1,539,394 | 1,789 | 0.12 | % | 1,497,096 | 879 | 0.06 | % | ||||||||||||||||||||||||||
| Short-Term Borrowings | 8,074 | 5 | 0.25 | % | 9,920 | 15 | 0.59 | % | 8,957 | 17 | 0.75 | % | 12,810 | 45 | 1.43 | % | 14,768 | 57 | 1.54 | % | 9,927 | 82 | 0.82 | % | 36,762 | 148 | 0.40 | % | ||||||||||||||||||||||||||||
| Subordinated Notes Payable | 52,887 | 431 | 3.19 | 52,887 | 420 | 3.11 | 52,887 | 404 | 3.02 | 52,887 | 379 | 2.86 | 52,887 | 363 | 2.68 | 52,887 | 1,634 | 3.05 | 55,729 | 1,434 | 2.53 | |||||||||||||||||||||||||||||||||||
| Other Long-Term Borrowings | 14,726 | 112 | 3.01 | 15,427 | 115 | 2.95 | 16,065 | 117 | 2.93 | 14,468 | 99 | 2.77 | 17,473 | 129 | 2.93 | 15,174 | 443 | 2.92 | 23,880 | 728 | 3.05 | |||||||||||||||||||||||||||||||||||
| Total Interest Bearing Liabilities | 1,587,098 | $ | 1,138 | 0.29 | % | 1,572,667 | $ | 1,080 | 0.28 | % | 1,621,900 | $ | 926 | 0.23 | % | 1,689,479 | $ | 804 | 0.20 | % | 1,589,909 | $ | 773 | 0.20 | % | 1,617,382 | $ | 3,948 | 0.25 | % | 1,613,467 | $ | 3,189 | 0.20 | % | |||||||||||||||||||||
| Noninterest Bearing Deposits | 867,000 | 834,729 | 829,432 | 797,964 | 802,136 | 832,477 | 785,689 | |||||||||||||||||||||||||||||||||||||||||||||||||
| Other Liabilities | 80,315 | 87,268 | 84,486 | 79,208 | 72,475 | 82,834 | 74,818 | |||||||||||||||||||||||||||||||||||||||||||||||||
| Total Liabilities | 2,534,413 | 2,494,664 | 2,535,818 | 2,566,651 | 2,464,520 | 2,532,693 | 2,473,974 | |||||||||||||||||||||||||||||||||||||||||||||||||
| SHAREOWNERS' EQUITY: | 288,051 | 285,296 | 281,661 | 278,489 | 278,943 | 283,406 | 278,335 | |||||||||||||||||||||||||||||||||||||||||||||||||
| Total Liabilities and Shareowners' Equity | $ | 2,822,464 | $ | 2,779,960 | $ | 2,817,479 | $ | 2,845,140 | $ | 2,743,463 | $ | 2,816,099 | $ | 2,752,309 | ||||||||||||||||||||||||||||||||||||||||||
| Interest Rate Spread | $ | 21,808 | 3.33 | % | $ | 21,595 | 3.37 | % | $ | 20,799 | 3.25 | % | $ | 20,006 | 3.14 | % | $ | 20,335 | 3.27 | % | $ | 84,208 | 3.27 | % | $ | 78,976 | 3.18 | % | ||||||||||||||||||||||||||||
| Interest Income and Rate Earned(1) | 22,946 | 3.63 | 22,675 | 3.65 | 21,725 | 3.48 | 20,810 | 3.33 | 21,108 | 3.47 | 88,156 | 3.52 | 82,165 | 3.38 | ||||||||||||||||||||||||||||||||||||||||||
| Interest Expense and Rate Paid(2) | 1,138 | 0.18 | 1,080 | 0.17 | 926 | 0.15 | 804 | 0.13 | 773 | 0.13 | 3,948 | 0.16 | 3,189 | 0.13 | ||||||||||||||||||||||||||||||||||||||||||
| Net Interest Margin | $ | 21,808 | 3.45 | % | $ | 21,595 | 3.48 | % | $ | 20,799 | 3.33 | % | $ | 20,006 | 3.21 | % | $ | 20,335 | 3.34 | % | $ | 84,208 | 3.37 | % | $ | 78,976 | 3.25 | % | ||||||||||||||||||||||||||||
| (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. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
For Information Contact:
J. Kimbrough Davis
Executive Vice President and Chief Financial Officer
850.402.7820