TALLAHASSEE, Fla., April 22, 2019 (GLOBE NEWSWIRE) -- Capital City Bank Group, Inc. (NASDAQ: CCBG) today reported net income of $6.4 million, or $0.38 per diluted share for the first quarter of 2019 compared to net income of $8.5 million, or $0.50 per diluted share for the fourth quarter of 2018, and $5.8 million, or $0.34 per diluted share for the first quarter of 2018.
Net income for the first quarter of 2018 included a $1.5 million, or $0.09 per diluted share tax benefit related to a 2017 plan year pension plan contribution. Net income for the fourth quarter of 2018 included a $2.0 million, or $0.09 per diluted share, gain from the sale of a banking office and a $0.3 million, or $0.02 per diluted share, tax benefit from a tax accounting method change.
HIGHLIGHTS
- Net interest income up 2.3% sequentially and 14.5% over prior year
- Period-end loan growth of 1.2% sequentially and 8.1% over prior year
- 42 basis points cost of funds reflects the quality of our core deposit base (~ 38% noninterest bearing)
- Continued efforts to restrain expense growth
- Nonperforming assets down 24% sequentially and 35% from prior year
“The results of the first quarter were strong and a great start to the new year,” said William G. Smith, Jr., Chairman, President and CEO. “Loan growth finished strong – up $21 million quarter over quarter. Four rate increases during 2018 and a strong core deposit base continue to positively impact our net interest income, which on a sequential basis, increased $600,000 as the higher rates roll through our earning asset portfolios. Lowering our efficiency ratio is a top priority and we have multiple strategies in place to grow revenues and reduce expenses. I am pleased to say that credit quality has returned to pre-crisis levels and our capital position is stronger today than it was then. Florida is growing and we are once again on offense following a number of years playing defense after the crisis. I am optimistic about 2019 and your management team will remain focused on implementing strategies that produce long-term value for our shareowners.”
Compared to the fourth quarter of 2018, the $2.1 million decrease in operating profit reflected a $1.7 million increase in noninterest expense, lower noninterest income of $0.7 million, and a $0.3 million increase in the loan loss provision, partially offset by higher net interest income of $0.6 million.
Compared to the first quarter of 2018, the $2.9 million increase in operating profit was attributable to higher net interest income of $3.1 million and noninterest income of $0.1 million, partially offset by higher noninterest expense of $0.3 million.
Our return on average assets (“ROA”) was 0.87% and our return on average equity (“ROE”) was 8.49% for the first quarter of 2019 compared to 0.81% and 8.14%, respectively, for the first quarter of 2018.
Discussion of Operating Results
Tax-equivalent net interest income for the first quarter of 2019 was $25.0 million compared to $24.5 million for the fourth quarter of 2018 and $21.9 million for the first quarter of 2018. During the first quarter of 2019, overnight funds increased primarily due to seasonal growth in our public fund deposits and a higher balance of one large negotiated rate client. The increase in tax-equivalent net interest income compared to the first quarter of 2018 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.
The federal funds target rate ended the first quarter of 2019 at a range of 2.25%-2.50%, with the most recent increase to the target rate occurring in December 2018. These fed rate increases positively affected our net interest income due to favorable repricing of our variable and adjustable rate earning assets. Although these increases resulted in higher rates paid on our negotiated rate deposit products, we continue to prudently manage our deposit mix and overall cost of funds, which was 42 basis points for the first quarter of 2019 compared to 31 basis points for the prior quarter. In conjunction with our overall balance sheet management, we continue to review our deposit board rates to determine whether rate increases are appropriate. We have developed several new deposit products designed to help maintain existing relationships for clients seeking higher returns on their deposit balances.
Our net interest margin for the first quarter of 2019 was 3.75%, a decrease of six basis points compared to the fourth quarter of 2018 and an increase of 32 basis points over the first quarter of 2018. The decrease in margin compared to the fourth quarter of 2018 was attributable to a higher level and less favorable mix of earning assets and an increase in cost of funds, primarily negotiated NOW and MMAs. All three factors were driven by the seasonal inflow of public fund deposits, which is anticipated in the first quarter of each year. The increase in the margin compared to the first quarter of 2018 was primarily due to loan growth and higher yields on our variable and adjustable rate earning assets, partially offset by higher rates on our negotiated rate deposits.
The provision for loan losses for the first quarter of 2019 was $0.8 million compared to $0.5 million for the fourth quarter of 2018 and $0.7 million for the first quarter of 2018. The higher provision compared to the fourth quarter of 2018 was primarily attributable to higher net loan charge-offs. At March 31, 2019, the allowance for loan losses of $14.1 million represented 0.78% of outstanding loans (net of overdrafts) and provided coverage of 280% of nonperforming loans compared to 0.80% and 207%, respectively, at December 31, 2018 and 0.80% and 181%, respectively, at March 31, 2018.
Noninterest income for the first quarter of 2019 totaled $12.6 million, a decrease of $0.7 million, or 5.2%, from the fourth quarter of 2018 and a $0.1 million, or 0.6%, increase over the first quarter of 2018. The decrease from the fourth quarter of 2018 was primarily attributable to lower deposit fees and mortgage banking fees.
Noninterest expense for the first quarter of 2019 totaled $28.2 million, an increase of $1.7 million, or 6.4%, over the fourth quarter of 2018 and $0.3 million, or 1.0%, over the first quarter of 2018. The increase over the fourth quarter was primarily attributable to higher other real estate expense of $2.0 million, partially offset by lower occupancy expense of $0.3 million. The increase in other real estate expense reflected a $2.0 million gain on the sale of a banking office in the fourth quarter of 2018. The decrease in occupancy expense was primarily attributable to lower maintenance expense for premises.
We realized income tax expense of $2.1 million for the first quarter of 2019 compared to $2.2 million for the fourth quarter of 2018 and an income tax benefit of $0.2 million for the first quarter of 2018. Fourth quarter of 2018 income tax expense reflected a discrete tax benefit of $0.3 million related to a tax accounting method change for a cost segregation and depreciation analysis for various properties we own. Income tax for the first quarter of 2018 included a discrete tax benefit of $1.5 million resulting from the effect of federal tax reform, on a pension plan contribution made in the first quarter of 2018 for the plan year 2017. Absent discrete items, we expect our effective tax rate to approximate 24%.
Discussion of Financial Condition
Average earning assets were $2.705 billion for the first quarter of 2019, an increase of $150.3 million, or 5.9%, over the fourth quarter of 2018, and an increase of $112.3 million, or 4.3%, over the first quarter of 2018. The change in average earning assets over both periods reflected a higher level of total deposits, resulting in a higher balance of overnight funds sold.
We maintained an average net overnight funds (deposits with banks plus fed funds sold less fed funds purchased) sold position of $265.7 million during the first quarter of 2019 compared to $80.8 million in the fourth quarter of 2018 and $240.9 million in the first quarter of 2018. The increase in the average net overnight funds compared to both prior periods resulted from increases in all deposit types except money market accounts and certificates of deposit.
While average loans decreased slightly ($5.2 million, or 0.3%) when compared to the fourth quarter of 2018, they grew $132.8 million, or 8.1% when compared to the first quarter of 2018. On an “as of” basis, loans grew $20.6 million and $134.9 million, respectively. The average decrease compared to the fourth quarter of 2018 primarily reflected declines in all loan types except commercial real estate and consumer loans. During the first quarter 2019, we purchased principal balances of $10.3 million in commercial real estate loans and $4.4 million in residential real estate loan pools, which partially offset the decline in quarterly loan production. Average growth over the first quarter of 2018 was experienced in all loan categories, with the exception of home equity loans. A portion of this growth compared to the first quarter 2018 was attributable to $36.8 million in principal balances of several loan pool purchases ($22.1 million in 2018 and $14.7 million in the first quarter of 2019). All loan purchases are individually reviewed and evaluated in accordance with our credit underwriting standards.
Nonperforming assets (nonaccrual loans and OREO) totaled $6.9 million at March 31, 2019, a decrease of $2.2 million, or 23.6%, from December 31, 2018 and $3.7 million, or 34.7%, from March 31, 2018. Nonaccrual loans totaled $5.0 million at March 31, 2019, a $1.8 million decrease from December 31, 2018 and a $2.3 million decrease from March 31, 2018. Nonaccrual loan additions totaled $2.5 million for the first quarter of 2019 compared to $3.1 million for the fourth quarter of 2018 and $1.8 million for the first quarter of 2018. The balance of OREO totaled $1.9 million at March 31, 2019, a decrease of $0.4 million and $1.4 million, respectively, from December 31, 2018 and March 31, 2018. For the first quarter of 2019, we added properties totaling $0.5 million, sold properties totaling $0.7 million, and recorded valuation adjustments totaling $0.2 million.
Average total deposits were $2.565 billion for the first quarter of 2019, an increase of $152.3 million, or 6.3% over the fourth quarter of 2018, and an increase of $108.6 million, or 4.4% over the first quarter of 2018. The increase in average deposits compared to both prior periods reflected increases in all deposit types except money market accounts and certificates of deposit. The seasonal influx of negotiated public NOW accounts has most likely peaked for this cycle, and is expected to gradually decline through the fourth quarter of 2019.
Deposit levels remain strong, and average core deposits continue to experience growth. We monitor deposit rates on an ongoing basis and adjust if necessary, as a prudent pricing discipline remains the key to managing our mix of deposits.
Average borrowings decreased $5.8 million compared to the fourth quarter of 2018 and decreased $3.1 million compared to the first quarter of 2018. Declines from both prior periods were primarily due to payoffs of FHLB advances.
Shareowners’ equity was $309.0 million at March 31, 2019, compared to $302.6 million at December 31, 2018 and $288.4 million at March 31, 2018. Our leverage ratio was 10.53%, 10.89%, and 10.36%, respectively, on these dates. Further, at March 31, 2019, our risk-adjusted capital ratio was 17.09% compared to 17.13% and 17.05% at December 31, 2018 and March 31, 2018, respectively. Our common equity tier 1 ratio was 13.62% at March 31, 2019, compared to 13.58% at December 31, 2018 and 13.44% at March 31, 2018. At March 31, 2019, each of our regulatory 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 $3.0 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 59 banking offices and 73 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 our future results to differ materially. The following factors, among others, could cause our actual results to differ: the accuracy of the our 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 our computer systems or fraud related to debit card products; changes in consumer spending and savings habits; our growth and profitability; the strength of the U.S. economy and the local economies where we conduct operations; the effects of a non-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 our ability to manage the risks involved in the foregoing. Additional factors can be found in our Annual Report on Form 10-K for the fiscal year ended December 31, 2018, and our 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 we assume 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 reconciliations are provided below.
| (Dollars in Thousands, except per share data) | Mar 31, 2019 | Dec 31, 2018 | Sep 30, 2018 | Jun 30, 2018 | Mar 31, 2018 | |||||||||||
| Shareowners' Equity (GAAP) | $ | 308,986 | $ | 302,587 | $ | 298,016 | $ | 293,571 | $ | 288,360 | ||||||
| Less: Goodwill (GAAP) | 84,811 | 84,811 | 84,811 | 84,811 | 84,811 | |||||||||||
| Tangible Shareowners' Equity (non-GAAP) | A | 224,175 | 217,776 | 213,205 | 208,760 | 203,549 | ||||||||||
| Total Assets (GAAP) | 3,052,051 | 2,959,183 | 2,819,190 | 2,880,278 | 2,924,832 | |||||||||||
| Less: Goodwill (GAAP) | 84,811 | 84,811 | 84,811 | 84,811 | 84,811 | |||||||||||
| Tangible Assets (non-GAAP) | B | $ | 2,967,240 | $ | 2,874,372 | $ | 2,734,379 | $ | 2,795,467 | $ | 2,840,021 | |||||
| Tangible Common Equity Ratio (non-GAAP) | A/B | 7.56 | % | 7.58 | % | 7.80 | % | 7.47 | % | 7.17 | % | |||||
| Actual Diluted Shares Outstanding (GAAP) | C | 16,840,496 | 16,808,542 | 17,127,846 | 17,114,380 | 17,088,419 | ||||||||||
| Tangible Book Value per Diluted Share (non-GAAP) | A/C | $ | 13.31 | $ | 12.96 | $ | 12.45 | $ | 12.20 | $ | 11.91 | |||||
| CAPITAL CITY BANK GROUP, INC. | |||||||||
| EARNINGS HIGHLIGHTS | |||||||||
| Unaudited | |||||||||
| Three Months Ended | |||||||||
| (Dollars in thousands, except per share data) | Mar 31, 2019 | Dec 31, 2018 | Mar 31, 2018 | ||||||
| EARNINGS | |||||||||
| Net Income | $ | 6,436 | $ | 8,458 | $ | 5,773 | |||
| Diluted Net Income Per Share | $ | 0.38 | $ | 0.50 | $ | 0.34 | |||
| PERFORMANCE | |||||||||
| Return on Average Assets | 0.87 | % | 1.18 | % | 0.81 | % | |||
| Return on Average Equity | 8.49 | % | 11.10 | % | 8.14 | % | |||
| Net Interest Margin | 3.75 | % | 3.81 | % | 3.43 | % | |||
| Noninterest Income as % of Operating Revenue | 33.51 | % | 35.22 | % | 36.44 | % | |||
| Efficiency Ratio | 75.01 | % | 70.21 | % | 81.07 | % | |||
| CAPITAL ADEQUACY | |||||||||
| Tier 1 Capital | 16.34 | % | 16.36 | % | 16.31 | % | |||
| Total Capital | 17.09 | % | 17.13 | % | 17.05 | % | |||
| Tangible Common Equity (1) | 7.56 | % | 7.58 | % | 7.17 | % | |||
| Leverage | 10.53 | % | 10.89 | % | 10.36 | % | |||
| Common Equity Tier 1 | 13.62 | % | 13.58 | % | 13.44 | % | |||
| Equity to Assets | 10.12 | % | 10.23 | % | 9.86 | % | |||
| ASSET QUALITY | |||||||||
| Allowance as % of Non-Performing Loans | 279.77 | % | 206.79 | % | 181.26 | % | |||
| Allowance as a % of Loans | 0.78 | % | 0.80 | % | 0.80 | % | |||
| Net Charge-Offs as % of Average Loans | 0.20 | % | 0.10 | % | 0.20 | % | |||
| Nonperforming Assets as % of Loans and OREO | 0.39 | % | 0.51 | % | 0.64 | % | |||
| Nonperforming Assets as % of Total Assets | 0.23 | % | 0.31 | % | 0.36 | % | |||
| STOCK PERFORMANCE | |||||||||
| High | $ | 25.87 | $ | 26.95 | $ | 26.50 | |||
| Low | 21.04 | 19.92 | 22.80 | ||||||
| Close | $ | 21.78 | $ | 23.21 | $ | 24.75 | |||
| Average Daily Trading Volume | 18,407 | 21,455 | 21,061 | ||||||
| (1) Tangible common equity ratio is a non-GAAP financial measure. For additional information, including a reconciliation to GAAP, refer to page 3. | |||||||||
| CAPITAL CITY BANK GROUP, INC. | |||||||||||||||
| CONSOLIDATED STATEMENT OF FINANCIAL CONDITION | |||||||||||||||
| Unaudited | |||||||||||||||
| 2019 | 2018 | ||||||||||||||
| (Dollars in thousands) | First Quarter | Fourth Quarter | Third Quarter | Second Quarter | First Quarter | ||||||||||
| ASSETS | |||||||||||||||
| Cash and Due From Banks | $ | 49,501 | $ | 62,032 | $ | 48,423 | $ | 56,573 | $ | 47,804 | |||||
| Funds Sold and Interest Bearing Deposits | 304,213 | 213,968 | 26,839 | 107,066 | 250,821 | ||||||||||
| Total Cash and Cash Equivalents | 353,714 | 276,000 | 75,262 | 163,639 | 298,625 | ||||||||||
| Investment Securities Available for Sale | 429,016 | 446,157 | 484,243 | 493,662 | 471,836 | ||||||||||
| Investment Securities Held to Maturity | 226,179 | 217,320 | 227,923 | 236,764 | 225,552 | ||||||||||
| Total Investment Securities | 655,195 | 663,477 | 712,166 | 730,426 | 697,388 | ||||||||||
| Loans Held for Sale | 4,557 | 6,869 | 8,297 | 8,246 | 4,845 | ||||||||||
| Loans, Net of Unearned Interest | |||||||||||||||
| Commercial, Financial, & Agricultural | 238,942 | 233,689 | 239,044 | 222,406 | 198,775 | ||||||||||
| Real Estate - Construction | 87,123 | 89,527 | 87,672 | 88,169 | 80,236 | ||||||||||
| Real Estate - Commercial | 615,129 | 602,061 | 596,391 | 575,993 | 551,309 | ||||||||||
| Real Estate - Residential | 338,574 | 334,197 | 333,896 | 320,296 | 307,050 | ||||||||||
| Real Estate - Home Equity | 209,194 | 210,111 | 212,942 | 218,851 | 223,994 | ||||||||||
| Consumer | 296,351 | 295,040 | 294,040 | 285,599 | 284,356 | ||||||||||
| Other Loans | 10,430 | 8,018 | 8,167 | 11,648 | 14,988 | ||||||||||
| Overdrafts | 1,362 | 1,582 | 1,602 | 1,513 | 1,187 | ||||||||||
| Total Loans, Net of Unearned Interest | 1,797,105 | 1,774,225 | 1,773,754 | 1,724,475 | 1,661,895 | ||||||||||
| Allowance for Loan Losses | (14,120 | ) | (14,210 | ) | (14,219 | ) | (13,563 | ) | (13,258 | ) | |||||
| Loans, Net | 1,782,985 | 1,760,015 | 1,759,535 | 1,710,912 | 1,648,637 | ||||||||||
| Premises and Equipment, Net | 86,846 | 87,190 | 89,567 | 90,000 | 90,939 | ||||||||||
| Goodwill | 84,811 | 84,811 | 84,811 | 84,811 | 84,811 | ||||||||||
| Other Real Estate Owned | 1,902 | 2,229 | 2,720 | 3,373 | 3,330 | ||||||||||
| Other Assets | 82,041 | 78,592 | 86,832 | 88,871 | 96,257 | ||||||||||
| Total Other Assets | 255,600 | 252,822 | 263,930 | 267,055 | 275,337 | ||||||||||
| Total Assets | $ | 3,052,051 | $ | 2,959,183 | $ | 2,819,190 | $ | 2,880,278 | $ | 2,924,832 | |||||
| LIABILITIES | |||||||||||||||
| Deposits: | |||||||||||||||
| Noninterest Bearing Deposits | $ | 995,853 | $ | 947,858 | $ | 934,146 | $ | 937,241 | $ | 890,482 | |||||
| NOW Accounts | 887,453 | 867,209 | 713,967 | 778,131 | 859,704 | ||||||||||
| Money Market Accounts | 244,628 | 237,739 | 254,099 | 257,965 | 257,422 | ||||||||||
| Regular Savings Accounts | 372,414 | 358,306 | 352,508 | 354,156 | 353,996 | ||||||||||
| Certificates of Deposit | 116,946 | 120,744 | 126,496 | 131,697 | 137,280 | ||||||||||
| Total Deposits | 2,617,294 | 2,531,856 | 2,381,216 | 2,459,190 | 2,498,884 | ||||||||||
| Short-Term Borrowings | 8,983 | 13,541 | 16,644 | 7,021 | 4,893 | ||||||||||
| Subordinated Notes Payable | 52,887 | 52,887 | 52,887 | 52,887 | 52,887 | ||||||||||
| Other Long-Term Borrowings | 7,661 | 8,568 | 12,456 | 12,897 | 13,333 | ||||||||||
| Other Liabilities | 56,240 | 49,744 | 57,971 | 54,712 | 66,475 | ||||||||||
| Total Liabilities | 2,743,065 | 2,656,596 | 2,521,174 | 2,586,707 | 2,636,472 | ||||||||||
| SHAREOWNERS' EQUITY | |||||||||||||||
| Common Stock | 168 | 167 | 171 | 171 | 171 | ||||||||||
| Additional Paid-In Capital | 31,929 | 31,058 | 38,325 | 37,932 | 37,343 | ||||||||||
| Retained Earnings | 304,763 | 300,177 | 293,254 | 288,800 | 283,990 | ||||||||||
| Accumulated Other Comprehensive Loss, Net of Tax | (27,874 | ) | (28,815 | ) | (33,734 | ) | (33,332 | ) | (33,144 | ) | |||||
| Total Shareowners' Equity | 308,986 | 302,587 | 298,016 | 293,571 | 288,360 | ||||||||||
| Total Liabilities and Shareowners' Equity | $ | 3,052,051 | $ | 2,959,183 | $ | 2,819,190 | $ | 2,880,278 | $ | 2,924,832 | |||||
| OTHER BALANCE SHEET DATA | |||||||||||||||
| Earning Assets | $ | 2,761,070 | $ | 2,658,539 | $ | 2,521,056 | $ | 2,570,213 | $ | 2,614,949 | |||||
| Interest Bearing Liabilities | 1,690,972 | 1,658,994 | 1,529,057 | 1,594,754 | 1,679,515 | ||||||||||
| Book Value Per Diluted Share | $ | 18.35 | $ | 18.00 | $ | 17.40 | $ | 17.15 | $ | 16.87 | |||||
| Tangible Book Value Per Diluted Share(1) | 13.31 | 12.96 | 12.45 | 12.20 | 11.91 | ||||||||||
| Actual Basic Shares Outstanding | 16,812 | 16,748 | 17,059 | 17,056 | 17,044 | ||||||||||
| Actual Diluted Shares Outstanding | 16,840 | 16,809 | 17,128 | 17,114 | 17,088 | ||||||||||
| (1) Tangible book value per diluted share is a non-GAAP financial measure. For additional information, including a reconciliation to GAAP, refer to page 3. | |||||||||||||||
| CAPITAL CITY BANK GROUP, INC. | ||||||||||||
| CONSOLIDATED STATEMENT OF OPERATIONS | ||||||||||||
| Unaudited | ||||||||||||
| 2019 | 2018 | |||||||||||
| (Dollars in thousands, except per share data) | First Quarter | Fourth Quarter | Third Quarter | Second Quarter | First Quarter | |||||||
| INTEREST INCOME | ||||||||||||
| Interest and Fees on Loans | $ | 22,616 | $ | 22,431 | $ | 21,618 | $ | 20,533 | $ | 19,535 | ||
| Investment Securities | 3,513 | 3,478 | 3,472 | 3,156 | 2,762 | |||||||
| Funds Sold | 1,593 | 461 | 302 | 730 | 917 | |||||||
| Total Interest Income | 27,722 | 26,370 | 25,392 | 24,419 | 23,214 | |||||||
| INTEREST EXPENSE | ||||||||||||
| Deposits | 2,099 | 1,312 | 1,068 | 995 | 868 | |||||||
| Short-Term Borrowings | 35 | 53 | 41 | 8 | 8 | |||||||
| Subordinated Notes Payable | 608 | 572 | 568 | 552 | 475 | |||||||
| Other Long-Term Borrowings | 72 | 85 | 92 | 94 | 100 | |||||||
| Total Interest Expense | 2,814 | 2,022 | 1,769 | 1,649 | 1,451 | |||||||
| Net Interest Income | 24,908 | 24,348 | 23,623 | 22,770 | 21,763 | |||||||
| Provision for Loan Losses | 767 | 457 | 904 | 815 | 745 | |||||||
| Net Interest Income after Provision for Loan Losses | 24,141 | 23,891 | 22,719 | 21,955 | 21,018 | |||||||
| NONINTEREST INCOME | ||||||||||||
| Deposit Fees | 4,775 | 5,172 | 5,207 | 4,842 | 4,872 | |||||||
| Bank Card Fees | 2,855 | 2,830 | 2,828 | 2,909 | 2,811 | |||||||
| Wealth Management Fees | 2,323 | 2,320 | 2,181 | 2,037 | 2,173 | |||||||
| Mortgage Banking Fees | 993 | 1,129 | 1,343 | 1,206 | 1,057 | |||||||
| Other | 1,606 | 1,787 | 1,749 | 1,548 | 1,564 | |||||||
| Total Noninterest Income | 12,552 | 13,238 | 13,308 | 12,542 | 12,477 | |||||||
| NONINTEREST EXPENSE | ||||||||||||
| Compensation | 16,349 | 16,322 | 15,891 | 15,797 | 15,911 | |||||||
| Occupancy, Net | 4,509 | 4,804 | 4,645 | 4,503 | 4,551 | |||||||
| Other Real Estate, Net | 363 | (1,663 | ) | 347 | 248 | 626 | ||||||
| Other | 6,977 | 7,042 | 7,816 | 7,845 | 6,818 | |||||||
| Total Noninterest Expense | 28,198 | 26,505 | 28,699 | 28,393 | 27,906 | |||||||
| OPERATING PROFIT | 8,495 | 10,624 | 7,328 | 6,104 | 5,589 | |||||||
| Income Tax (Benefit) Expense | 2,059 | 2,166 | 1,338 | 101 | (184 | ) | ||||||
| NET INCOME | $ | 6,436 | $ | 8,458 | $ | 5,990 | $ | 6,003 | $ | 5,773 | ||
| PER SHARE DATA | ||||||||||||
| Basic Net Income | $ | 0.38 | $ | 0.50 | $ | 0.35 | $ | 0.35 | $ | 0.34 | ||
| Diluted Net Income | 0.38 | 0.50 | 0.35 | 0.35 | 0.34 | |||||||
| Cash Dividend | $ | 0.11 | $ | 0.09 | $ | 0.09 | $ | 0.07 | $ | 0.07 | ||
| AVERAGE SHARES | ||||||||||||
| Basic | 16,791 | 16,989 | 17,056 | 17,045 | 17,028 | |||||||
| Diluted | 16,819 | 17,050 | 17,125 | 17,104 | 17,073 | |||||||
| CAPITAL CITY BANK GROUP, INC. | |||||||||||||||
| ALLOWANCE FOR LOAN LOSSES | |||||||||||||||
| AND RISK ELEMENT ASSETS | |||||||||||||||
| Unaudited | |||||||||||||||
| 2019 | 2018 | ||||||||||||||
| (Dollars in thousands, except per share data) | First Quarter | Fourth Quarter | Third Quarter | Second Quarter | First Quarter | ||||||||||
| ALLOWANCE FOR LOAN LOSSES | |||||||||||||||
| Balance at Beginning of Period | $ | 14,210 | $ | 14,219 | $ | 13,563 | $ | 13,258 | $ | 13,307 | |||||
| Provision for Loan Losses | 767 | 457 | 904 | 815 | 745 | ||||||||||
| Net Charge-Offs | 857 | 466 | 248 | 510 | 794 | ||||||||||
| Balance at End of Period | $ | 14,120 | $ | 14,210 | $ | 14,219 | $ | 13,563 | $ | 13,258 | |||||
| As a % of Loans | 0.78 | % | 0.80 | % | 0.80 | % | 0.78 | % | 0.80 | % | |||||
| As a % of Nonperforming Loans | 279.77 | % | 206.79 | % | 207.06 | % | 236.25 | % | 181.26 | % | |||||
| CHARGE-OFFS | |||||||||||||||
| Commercial, Financial and Agricultural | $ | 95 | $ | 53 | $ | 268 | $ | 141 | $ | 182 | |||||
| Real Estate - Construction | - | - | - | - | 7 | ||||||||||
| Real Estate - Commercial | 155 | - | 25 | - | 290 | ||||||||||
| Real Estate - Residential | 264 | 111 | 106 | 456 | 107 | ||||||||||
| Real Estate - Home Equity | 52 | 106 | 112 | 157.00 | 158 | ||||||||||
| Consumer | 795 | 728 | 463 | 509 | 695 | ||||||||||
| Total Charge-Offs | $ | 1,361 | $ | 998 | $ | 974 | $ | 1,263 | $ | 1,439 | |||||
| RECOVERIES | |||||||||||||||
| Commercial, Financial and Agricultural | $ | 74 | $ | 128 | $ | 78 | $ | 87 | $ | 166 | |||||
| Real Estate - Construction | - | 25 | - | - | 1.00 | ||||||||||
| Real Estate - Commercial | 70 | 13 | 222 | 15 | 123 | ||||||||||
| Real Estate - Residential | 44 | 106 | 107 | 346 | 84 | ||||||||||
| Real Estate - Home Equity | 32 | 61 | 47 | 22 | 61 | ||||||||||
| Consumer | 284 | 199 | 272 | 283 | 210 | ||||||||||
| Total Recoveries | $ | 504 | $ | 532 | $ | 726 | $ | 753 | $ | 645 | |||||
| NET CHARGE-OFFS | $ | 857 | $ | 466 | $ | 248 | $ | 510 | $ | 794 | |||||
| Net Charge-Offs as a % of Average Loans (1) | 0.20 | % | 0.10 | % | 0.06 | % | 0.12 | % | 0.20 | % | |||||
| RISK ELEMENT ASSETS | |||||||||||||||
| Nonaccruing Loans | $ | 5,047 | $ | 6,872 | $ | 6,867 | $ | 5,741 | $ | 7,314 | |||||
| Other Real Estate Owned | 1,902 | 2,229 | 2,720 | 3,373 | 3,330 | ||||||||||
| Total Nonperforming Assets | $ | 6,949 | $ | 9,101 | $ | 9,587 | $ | 9,114 | $ | 10,644 | |||||
| Past Due Loans 30-89 Days | $ | 4,682 | $ | 4,757 | $ | 3,684 | $ | 3,472 | $ | 4,268 | |||||
| Past Due Loans 90 Days or More | - | - | 126 | - | - | ||||||||||
| Classified Loans | 22,219 | 22,888 | 27,039 | 29,583 | 31,709 | ||||||||||
| Performing Troubled Debt Restructuring's | $ | 20,791 | $ | 22,084 | $ | 28,661 | $ | 29,981 | $ | 31,472 | |||||
| Nonperforming Loans as a % of Loans | 0.28 | % | 0.39 | % | 0.39 | % | 0.33 | % | 0.44 | % | |||||
| Nonperforming Assets as a % of Loans and Other Real Estate | 0.39 | % | 0.51 | % | 0.54 | % | 0.52 | % | 0.64 | % | |||||
| Nonperforming Assets as a % of Total Assets | 0.23 | % | 0.31 | % | 0.34 | % | 0.32 | % | 0.36 | % | |||||
| (1) Annualized | |||||||||||||||
| CAPITAL CITY BANK GROUP, INC. | ||||||||||||||||||||||||||||||||||||||||
| AVERAGE BALANCE AND INTEREST RATES(1) | ||||||||||||||||||||||||||||||||||||||||
| Unaudited | ||||||||||||||||||||||||||||||||||||||||
| First Quarter 2019 | Fourth Quarter 2018 | Third Quarter 2018 | Second Quarter 2018 | First Quarter 2018 | ||||||||||||||||||||||||||||||||||||
| (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 | |||||||||||||||||||||||||
| ASSETS: | ||||||||||||||||||||||||||||||||||||||||
| Loans, Net of Unearned Interest | $ | 1,780,406 | $ | 22,718 | 5.18 | % | $ | 1,785,570 | $ | 22,556 | 5.01 | % | $ | 1,747,093 | $ | 21,733 | 4.94 | % | $ | 1,691,287 | 20,625 | 4.89 | % | $ | 1,647,612 | $ | 19,636 | 4.83 | % | |||||||||||
| Investment Securities | ||||||||||||||||||||||||||||||||||||||||
| Taxable Investment Securities | 618,127 | 3,387 | 2.20 | 637,735 | 3,325 | 2.08 | 663,639 | 3,290 | 1.98 | 643,516 | 2,945 | 1.83 | 619,137 | 2,523 | 1.64 | |||||||||||||||||||||||||
| Tax-Exempt Investment Securities | 40,575 | 158 | 1.56 | 50,362 | 193 | 1.54 | 60,952 | 229 | 1.50 | 72,478 | 266 | 1.47 | 84,800 | 318 | 1.50 | |||||||||||||||||||||||||
| Total Investment Securities | 658,702 | 3,545 | 2.16 | 688,097 | 3,518 | 2.04 | 724,591 | 3,519 | 1.94 | 715,994 | 3,211 | 1.79 | 703,937 | 2,841 | 1.62 | |||||||||||||||||||||||||
| Funds Sold | 265,694 | 1,593 | 2.43 | 80,815 | 461 | 2.26 | 63,608 | 302 | 1.88 | 158,725 | 730 | 1.84 | 240,916 | 917 | 1.54 | |||||||||||||||||||||||||
| Total Earning Assets | 2,704,802 | $ | 27,856 | 4.17 | % | 2,554,482 | $ | 26,535 | 4.12 | % | 2,535,292 | $ | 25,554 | 4.00 | % | 2,566,006 | $ | 24,566 | 3.84 | % | 2,592,465 | $ | 23,394 | 3.66 | % | |||||||||||||||
| Cash and Due From Banks | 53,848 | 52,344 | 49,493 | 50,364 | 52,711 | |||||||||||||||||||||||||||||||||||
| Allowance for Loan Losses | (14,347 | ) | (14,642 | ) | (14,146 | ) | (13,521 | ) | (13,651 | ) | ||||||||||||||||||||||||||||||
| Other Assets | 252,208 | 257,061 | 256,285 | 258,255 | 260,595 | |||||||||||||||||||||||||||||||||||
| Total Assets | $ | 2,996,511 | $ | 2,849,245 | $ | 2,826,924 | $ | 2,861,104 | $ | 2,892,120 | ||||||||||||||||||||||||||||||
| LIABILITIES: | ||||||||||||||||||||||||||||||||||||||||
| Interest Bearing Deposits | ||||||||||||||||||||||||||||||||||||||||
| NOW Accounts | $ | 884,277 | $ | 1,755 | 0.80 | % | $ | 739,225 | $ | 995 | 0.53 | % | $ | 733,255 | $ | 773 | 0.42 | % | $ | 790,335 | $ | 725 | 0.37 | % | $ | 863,175 | $ | 659 | 0.31 | % | ||||||||||
| Money Market Accounts | 239,516 | 247 | 0.42 | 248,486 | 216 | 0.34 | 254,440 | 190 | 0.30 | 255,143 | 166 | 0.26 | 246,576 | 103 | 0.17 | |||||||||||||||||||||||||
| Savings Accounts | 364,783 | 44 | 0.05 | 356,723 | 44 | 0.05 | 352,833 | 43 | 0.05 | 351,664 | 43 | 0.05 | 343,987 | 42 | 0.05 | |||||||||||||||||||||||||
| Time Deposits | 118,839 | 53 | 0.18 | 123,193 | 57 | 0.18 | 129,927 | 62 | 0.19 | 134,171 | 61 | 0.18 | 140,359 | 64 | 0.18 | |||||||||||||||||||||||||
| Total Interest Bearing Deposits | 1,607,415 | 2,099 | 0.53 | % | 1,467,627 | 1,312 | 0.37 | % | 1,470,455 | 1,068 | 0.30 | % | 1,531,313 | 995 | 0.27 | % | 1,594,097 | 868 | 0.23 | % | ||||||||||||||||||||
| Short-Term Borrowings | 11,378 | 35 | 1.26 | % | 15,424 | 53 | 1.36 | % | 12,949 | 41 | 1.24 | % | 6,633 | 8 | 0.49 | % | 8,869 | 8 | 0.37 | % | ||||||||||||||||||||
| Subordinated Notes Payable | 52,887 | 608 | 4.60 | 52,887 | 572 | 4.23 | 52,887 | 568 | 4.20 | 52,887 | 552 | 4.13 | 52,887 | 475 | 3.60 | |||||||||||||||||||||||||
| Other Long-Term Borrowings | 8,199 | 72 | 3.55 | 9,918 | 85 | 3.40 | 12,729 | 92 | 2.87 | 13,151 | 94 | 2.88 | 13,787 | 100 | 2.93 | |||||||||||||||||||||||||
| Total Interest Bearing Liabilities | 1,679,879 | $ | 2,814 | 0.68 | % | 1,545,856 | $ | 2,022 | 0.54 | % | 1,549,020 | $ | 1,769 | 0.47 | % | 1,603,984 | $ | 1,649 | 0.43 | % | 1,669,640 | $ | 1,451 | 0.37 | % | |||||||||||||||
| Noninterest Bearing Deposits | 957,300 | 944,748 | 921,817 | 900,643 | 862,009 | |||||||||||||||||||||||||||||||||||
| Other Liabilities | 52,070 | 56,445 | 58,330 | 64,671 | 72,969 | |||||||||||||||||||||||||||||||||||
| Total Liabilities | 2,689,249 | 2,547,049 | 2,529,167 | 2,569,298 | 2,604,618 | |||||||||||||||||||||||||||||||||||
| SHAREOWNERS' EQUITY: | 307,262 | 302,196 | 297,757 | 291,806 | 287,502 | |||||||||||||||||||||||||||||||||||
| Total Liabilities and Shareowners' Equity | $ | 2,996,511 | $ | 2,849,245 | $ | 2,826,924 | $ | 2,861,104 | $ | 2,892,120 | ||||||||||||||||||||||||||||||
| Interest Rate Spread | $ | 25,042 | 3.49 | % | $ | 24,513 | 3.58 | % | $ | 23,785 | 3.53 | % | $ | 22,917 | 3.41 | % | $ | 21,943 | 3.29 | % | ||||||||||||||||||||
| Interest Income and Rate Earned(1) | 27,856 | 4.17 | 26,535 | 4.12 | 25,554 | 4.00 | 24,566 | 3.84 | 23,394 | 3.66 | ||||||||||||||||||||||||||||||
| Interest Expense and Rate Paid(2) | 2,814 | 0.42 | 2,022 | 0.31 | 1,769 | 0.28 | 1,649 | 0.26 | 1,451 | 0.23 | ||||||||||||||||||||||||||||||
| Net Interest Margin | $ | 25,042 | 3.75 | % | $ | 24,513 | 3.81 | % | $ | 23,785 | 3.72 | % | $ | 22,917 | 3.58 | % | $ | 21,943 | 3.43 | % | ||||||||||||||||||||
| (1) Interest and average rates are calculated on a tax-equivalent basis using a 25% 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