TALLAHASSEE, Fla., July 26, 2022 (GLOBE NEWSWIRE) -- Capital City Bank Group, Inc. (NASDAQ: CCBG) today reported net income attributable to common shareowners of $8.7 million, or $0.51 per diluted share, for the second quarter of 2022 compared to net income of $8.5 million, or $0.50 per diluted share, for the first quarter of 2022, and $7.4 million, or $0.44 per diluted share, for the second quarter of 2021.
For the first six months of 2022, net income attributable to common shareowners totaled $17.2 million, or $1.01 per diluted share, compared to net income of $16.9 million, or $1.00 per diluted share, for the same period of 2021.
QUARTER HIGHLIGHTS (2nd Quarter 2022 versus 1st Quarter 2022)
- Net interest income grew 14.7% driven by strong loan growth and higher interest rates
- Period end loan balances grew $228.1 million, or 11.5%, with residential loan purchases from Capital City Home Loans (CCHL) contributing $132 million and solid growth from residential construction and commercial mortgage
- Provision for credit losses increased $1.5 million driven by strong loan growth – overall credit quality remained strong
- Average deposit balances grew $51.3 million, or 1.4%, driven by higher noninterest bearing and savings balances
- Noninterest income decreased $0.9 million, or 3.5%, due to lower insurance commission revenues at Capital City Strategic Wealth (CCSW), which had a very strong first quarter – deposit, bank card, and retail brokerage fees all realized solid improvement
- Noninterest expense increased $1.3 million, or 3.2%, primarily due to higher performance-based compensation and to a lesser extent annual merit raises and staffing additions in new markets
- Tangible book value per share declined $0.04, or 0.2%, buoyed by strong earnings that significantly mitigated the impact of rapidly increasing interest rates and the related impact on our unrealized loss on investment securities
“Strong loan growth and higher rates produced another quarter of solid financial performance,” said William G. Smith, Jr., Chairman, President and CEO of Capital City Bank Group. “The quality of our core deposit base, deployment of liquidity into the loan portfolio and higher interest rates all contributed to an increase in our net interest margin percentage of 32 basis points during the second quarter. The $1.5 million loan loss provision recorded in this quarter was primarily driven by loan growth as our credit quality metrics remain very favorable. From a macro-economic perspective, we continue to face a high level of uncertainty. While much of this is out of our control, we believe we are well positioned to navigate through this year and beyond. Although higher rates will generate unrealized losses in our available-for-sale investment portfolio, our asset-sensitive balance sheet and pension liability should respond well to rising rates. Additionally, our expansion efforts in west Florida and the northern arc of Atlanta are producing favorable results. While challenges remain, we continue to focus on identifying opportunities and executing strategies we believe are sustainable and add long-term value for our shareowners.”
Discussion of Operating Results
Net Interest Income/Net Interest Margin
Tax-equivalent net interest income for the second quarter of 2022 totaled $28.4 million, compared to $24.8 million for the first quarter of 2022, and $26.1 million for the second quarter of 2021. For the first six months of 2022, tax-equivalent net interest income totaled $53.2 million compared to $50.7 million for the same period of 2021. Compared to the referenced prior periods, the increase reflected higher interest rates, strong loan growth, and higher investment balances.
Our net interest margin for the second quarter of 2022 was 2.87%, an increase of 32 basis points over the first quarter of 2022 primarily attributable to higher interest rates and an overall improved earning asset mix. For the month of June 2022, our net interest margin was 3.05%. Excluding the impact of overnight funds in excess of $200 million, our net interest margin for the second quarter of 2022 was 3.24%. Compared to the three and six month periods of 2021, the net interest margin decreased two and 16 basis points, respectively, primarily due to growth in earning assets (driven by higher deposit balances), which drove net interest income dollars higher, but negatively impacted the margin percentage.
Provision for Credit Losses
We recorded a provision for credit losses of $1.5 million for the second quarter of 2022 compared to no provision in the first quarter of 2022 and a provision benefit of $0.6 million for the second quarter of 2021. Compared to the first quarter of 2022, the higher level of provision was primarily attributable to strong loan growth. For the first six months of 2022, the provision was $1.5 million compared to a benefit of $1.6 million for the same period of 2021. Improvement in credit quality and the release of reserves held for pandemic related losses favorably impacted our provision for credit losses in 2022. We discuss the allowance for credit losses further below.
Noninterest Income and Noninterest Expense
Noninterest income for the second quarter of 2022 totaled $24.9 million compared to $25.8 million for the first quarter of 2022 and $26.5 million for the second quarter of 2021. The $0.9 million decrease from the first quarter of 2022 was primarily attributable to lower wealth management fees of $1.7 million, which reflected lower insurance revenues at CCSW of $1.9 million that were partially offset by higher retail brokerage fees of $0.3 million. Combined deposit and bank card fees increased $0.5 million and mortgage banking fees increased $0.1 million. Compared to the second quarter of 2021, the $1.6 million decrease was primarily attributable to lower mortgage banking revenues of $4.2 million that were partially offset by higher deposit fees of $1.2 million and wealth management fees of $1.1 million (insurance revenues of $0.7 million and retail brokerage fees of $0.4 million). For the first six months of 2022, noninterest income totaled $50.7 million compared to $56.3 million for the same period of 2021 with the $5.6 million decrease largely driven by lower mortgage banking fees of $12.3 million partially offset by higher deposit fees of $2.1 million and wealth management fees of $4.1 million (insurance revenues of $3.4 million and retail brokerage fees of $0.7 million). Lower mortgage banking revenues for 2022 reflected a reduction in refinancing activity, and to a lesser degree lower purchase mortgage originations, primarily driven by higher interest rates. In addition, gain on sale margins have been pressured due to a lower level of both governmental loan product originations and mandatory delivery loan sales (both of which provide a higher gain percentage). Strong best efforts (portfolio product) origination volume and continued stability in our construction/permanent loan program have partially offset the slowdown in secondary market originations. For 2022, CCHL contributed $0.6 million ($0.03 per diluted share) to earnings versus $2.5 million ($0.14 per diluted share) in 2021, which has largely been offset by a $1.2 million ($0.07 per diluted share) contribution to earnings by CCSW and improvement in both retail brokerage fees and deposit fees which reflects our continued focus on and commitment to revenue diversification.
Noninterest expense for the second quarter of 2022 totaled $40.5 million compared to $39.2 million for the first quarter of 2022 and $42.1 million for the second quarter of 2021. The $1.3 million increase over the first quarter of 2022 was driven by a $0.9 million increase in other expense and higher compensation of $0.5 million. Higher expense for advertising ($0.2 million), processing ($0.1 million), and travel/entertainment ($0.1 million) drove the increase in other expense. Other expense also reflects a $0.2 million expense for our VISA share swap agreement, which is triggered when VISA funds their merchant litigation reserve which happens infrequently. The $0.5 million increase in compensation was driven by higher salary expense of $0.8 million (CCHL commissions, annual merit, and staffing additions in new markets) that was partially offset by lower associate benefit expense of $0.3 million. Compared to the second quarter of 2021, the $1.6 million decrease was primarily attributable to lower pension settlement expense of $1.8 million. Other expense decreased $0.1 million and reflected lower base pension plan expense of $0.8 million partially offset by higher expense for advertising and miscellaneous (includes $0.2 million VISA share swap expense). For the first six months of 2022, noninterest expense totaled $79.7 million compared to $82.6 million for the same period of 2021 with the $2.9 million decrease primarily attributable to lower pension settlement expense of $1.6 million and lower compensation expense of $1.2 million. The decrease in compensation expense reflected lower salary expense of $1.4 million partially offset by higher associate benefit expense of $0.2 million. Lower performance-based compensation (commissions/incentives) at CCHL partially offset by higher performance based compensation at CCSW and lower realized loan cost (credit offset by salary expense) at the Bank drove the variance in salary expense. To date, the impact of inflation and higher prices on our cost structure has not been significant. While operating in a very tight labor market, we have mitigated the impact of salary pressures by not replacing certain positions that became vacant. Further, we have realized higher than historical increases in certain premises and processing contracts reflective of inflationary pressures and will continue to focus on opportunities to re-negotiate or replace vendors at periodic renewals.
Income Taxes
We realized income tax expense of $2.2 million (effective rate of 19.4%) for the second quarter of 2022 comparable to the first quarter of 2022 and $2.1 million (effective rate of 18.9%) for the second quarter of 2021. For the first six months of 2022, we realized income tax expense of $4.4 million (effective rate of 19.6%) compared to $4.8 million (effective rate of 18.8%) for the same period of 2021. For the second quarter of 2022, we realized a favorable discrete tax item for $0.3 million related to state of Florida tax refunds. Absent discrete items, we expect our annual effective tax rate to approximate 20-21% in 2022.
Discussion of Financial Condition
Earning Assets
Average earning assets totaled $3.974 billion for the second quarter of 2022, an increase of $35.4 million, or 0.9%, over the first quarter of 2022, and an increase of $182.9 million, or 4.8%, over the fourth quarter of 2021. The increase over both prior periods was primarily driven by higher deposit balances (see below – Funding). The mix of earning assets continues to improve driven by strong loan growth and further deployment of liquidity into the investment portfolio, which has increased $135 million in 2022.
We maintained an average net overnight funds (deposits with banks plus FED funds sold less FED funds purchased) sold position of $691.9 million in the second quarter of 2022 compared to $873.1 million in the first quarter of 2022 and $789.1 million in the fourth quarter of 2021.
Average loans held for investment (“HFI”) increased $121.1 million, or 6.2%, over the first quarter of 2022 and increased $136.4 million, or 7.0%, over the fourth quarter of 2021. Period end loans increased $228.1 million, or 11.5%, over the first quarter of 2022 and $282.2 million, or 14.6%, over the fourth quarter of 2022. The growth in 2022 has been broad based with increases realized in all loan categories, more significantly, residential mortgage, residential construction, and consumer (indirect auto) with strong growth in commercial mortgage in the second quarter. The increase in residential mortgage reflected a higher level of loan purchases (second quarter - $132 million, first quarter - $26 million) from CCHL driven by higher demand for portfolio/adjustable rate product. In addition, the increase in commercial mortgage reflected a loan pool purchase (7 loans for $15 million).
Allowance for Credit Losses
At June 30, 2022, the allowance for credit losses for HFI loans totaled $21.3 million compared to $20.8 million at March 31, 2022 and $21.6 million at December 31, 2021. Activity within the allowance is provided on Page 9. The $0.5 million increase in the allowance for the second quarter was driven by growth in reserves for strong new loan origination volume that was partially offset by the release of reserves held for pandemic related losses that have not materialized to the extent projected. Further, net charge-offs increased $0.4 million to $1.1 million for the second quarter and reflected one large commercial charge-off for $0.8 million related to a work-out resolved during the quarter. At June 30, 2022, the allowance represented 0.96% of HFI loans and provided coverage of 678% of nonperforming loans compared to 1.05% and 761%, respectively, at March 31, 2022, and 1.12% and 500%, respectively, at December 31, 2021.
Credit Quality
Overall credit quality remains strong. Nonperforming assets (nonaccrual loans and other real estate) totaled $3.2 million at June 30, 2022 compared to $2.8 million at March 31, 2022 and $4.3 million at December 31, 2021. At June 30, 2022, nonperforming assets as a percentage of total assets totaled 0.07% compared to 0.06% at March 31, 2022 and 0.10% at December 31, 2021. Nonaccrual loans totaled $3.1 million at June 30, 2022, a $0.4 million increase over March 31, 2022 and a $1.2 million decrease from December 31, 2021. Further, classified loans decreased $2.7 million from the first quarter of 2022 to $19.6 million.
Funding (Deposits/Debt)
Average total deposits were $3.765 billion for the second quarter of 2022, an increase of $51.3 million, or 1.4%, over the first quarter of 2022 and $216.2 million, or 6.1%, over the fourth quarter of 2021. Compared to the first quarter of 2022, the increase reflected higher noninterest bearing and savings balances, partially offset by a decline in seasonal public fund balances. Compared to the fourth quarter of 2021, strong growth occurred in our noninterest bearing deposits, NOW accounts, and savings account balances. Over the past few years, we have experienced strong core deposit growth, in addition to growth related to multiple government stimulus programs in response to the Covid-19 pandemic, such as those under the CARES Act and the American Rescue Plan Act. Given these increases, the potential exists for our deposit levels to be volatile for the remainder of 2022 due to the uncertain timing of the outflows of the stimulus related balances, in addition to the frequency and degree to which the Federal Open Market Committee (FOMC) raises the overnight funds rate. It is anticipated that liquidity levels will remain strong given our current level of overnight funds.
Average borrowings decreased $0.7 million from the first quarter of 2022 primarily due to a decrease in short-term repurchase agreements and declined $15.3 million from the fourth quarter of 2021, reflecting lower warehouse line borrowing needs to support CCHL’s loans held for sale.
Capital
Shareowners’ equity was $371.7 million at June 30, 2022 compared to $372.1 million at March 31, 2022 and $383.2 million at December 31, 2021. For the first six months of 2022, shareowners’ equity was positively impacted by net income attributable to common shareowners of $17.2 million, a $2.2 million increase in the fair value of the interest rate swap related to subordinated debt, net adjustments totaling $0.8 million related to transactions under our stock compensation plans, stock compensation accretion of $0.5 million, and a $0.3 million decrease in the accumulated other comprehensive loss for our pension plan. Shareowners’ equity was reduced by common stock dividends of $5.4 million ($0.32 per share) and a $27.1 million increase in the unrealized loss on investment securities.
At June 30, 2022, our total risk-based capital ratio was 16.07% compared to 16.98% at March 31, 2022 and 17.15% at December 31, 2021. Our common equity tier 1 capital ratio was 13.07%, 13.77%, and 13.86%, respectively, on these dates. Our leverage ratio was 8.77%, 8.78%, and 8.95%, respectively, on these dates. All of our regulatory capital ratios exceeded the threshold to be designated as “well-capitalized” under the Basel III capital standards. Further, our tangible common equity ratio was 6.54% at June 30, 2022 compared to 6.61% and 6.95% at March 31, 2022 and December 31, 2021, respectively. The decline in our regulatory capital ratios was attributable to strong loan growth and higher asset levels. The decline in our tangible capital ratio from the first quarter of 2022 was driven by an $8.0 million increase in the unrealized loss on investment securities which totaled $31.7 million, or 5.3% of available for sale securities at June 30, 2022.
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 $4.4 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, securities brokerage services and financial advisory services, including the sale of life insurance, risk management and asset protection services. Our bank subsidiary, Capital City Bank, was founded in 1895 and now has 57 banking offices and 88 ATMs/ITMs 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: fluctuations in inflation, interest rates, or monetary policies; the accuracy of the our financial statement estimates and assumptions; legislative or regulatory changes; 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; natural disasters, widespread health emergencies, military conflict, terrorism or other geopolitical events; changes in the stock market and other capital and real estate markets; the magnitude and duration of the ongoing COVID-19 pandemic and its impact on the global economy and financial market conditions and our business; customer acceptance of third-party products and services; increased competition and its effect on pricing; 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, 2021, 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 and other intangibles 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) | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | |||||||||||
| Shareowners' Equity (GAAP) | $ | 371,675 | $ | 372,145 | $ | 383,166 | $ | 348,868 | $ | 335,880 | ||||||
| Less: Goodwill and Other Intangibles (GAAP) | 93,173 | 93,213 | 93,253 | 93,293 | 93,333 | |||||||||||
| Tangible Shareowners' Equity (non-GAAP) | A | 278,502 | 278,932 | 289,913 | 255,575 | 242,547 | ||||||||||
| Total Assets (GAAP) | 4,354,297 | 4,310,045 | 4,263,849 | 4,048,733 | 4,011,459 | |||||||||||
| Less: Goodwill and Other Intangibles (GAAP) | 93,173 | 93,213 | 93,253 | 93,293 | 93,333 | |||||||||||
| Tangible Assets (non-GAAP) | B | $ | 4,261,124 | $ | 4,216,832 | $ | 4,170,596 | $ | 3,955,440 | $ | 3,918,126 | |||||
| Tangible Common Equity Ratio (non-GAAP) | A/B | 6.54 | % | 6.61 | % | 6.95 | % | 6.46 | % | 6.19 | % | |||||
| Actual Diluted Shares Outstanding (GAAP) | C | 16,981,614 | 16,962,362 | 16,935,389 | 16,911,715 | 16,901,375 | ||||||||||
| Tangible Book Value per Diluted Share (non-GAAP) | A/C | $ | 16.40 | $ | 16.44 | $ | 17.12 | $ | 15.11 | $ | 14.35 | |||||
| CAPITAL CITY BANK GROUP, INC. | |||||||||||||
| EARNINGS HIGHLIGHTS | |||||||||||||
| Unaudited | |||||||||||||
| Three Months Ended | Six Months Ended | ||||||||||||
| (Dollars in thousands, except per share data) | Jun 30, 2022 | Mar 31, 2022 | Jun 30, 2021 | Jun 30, 2022 | Jun 30, 2021 | ||||||||
| EARNINGS | |||||||||||||
| Net Income Attributable to Common Shareowners | $ | 8,713 | $ | 8,455 | $ | 7,427 | $ | 17,168 | $ | 16,933 | |||
| Diluted Net Income Per Share | $ | 0.51 | $ | 0.50 | $ | 0.44 | $ | 1.01 | $ | 1.00 | |||
| PERFORMANCE | |||||||||||||
| Return on Average Assets | 0.81 | % | 0.80 | % | 0.75 | % | 0.81 | % | 0.88 | % | |||
| Return on Average Equity | 9.36 | 8.93 | 9.05 | 9.14 | 10.42 | ||||||||
| Net Interest Margin | 2.87 | 2.55 | 2.89 | 2.71 | 2.87 | ||||||||
| Noninterest Income as % of Operating Revenue | 46.78 | 51.11 | 50.47 | 48.89 | 52.73 | ||||||||
| Efficiency Ratio | 75.96 | % | 77.55 | % | 80.18 | % | 76.73 | % | 77.22 | % | |||
| CAPITAL ADEQUACY | |||||||||||||
| Tier 1 Capital | 15.13 | % | 15.98 | % | 15.44 | % | 15.13 | % | 15.44 | % | |||
| Total Capital | 16.07 | 16.98 | 16.48 | 16.07 | 16.48 | ||||||||
| Leverage | 8.77 | 8.78 | 8.84 | 8.77 | 8.84 | ||||||||
| Common Equity Tier 1 | 13.07 | 13.77 | 13.14 | 13.07 | 13.14 | ||||||||
| Tangible Common Equity (1) | 6.54 | 6.61 | 6.19 | 6.54 | 6.19 | ||||||||
| Equity to Assets | 8.54 | % | 8.63 | % | 8.37 | % | 8.54 | % | 8.37 | % | |||
| ASSET QUALITY | |||||||||||||
| Allowance as % of Non-Performing Loans | 677.57 | % | 760.83 | % | 433.93 | % | 677.57 | % | 433.93 | % | |||
| Allowance as a % of Loans HFI | 0.96 | 1.05 | 1.10 | 0.96 | 1.10 | ||||||||
| Net Charge-Offs as % of Average Loans HFI | 0.22 | 0.16 | (0.07 | ) | 0.19 | (0.08 | ) | ||||||
| Nonperforming Assets as % of Loans HFI and OREO | 0.15 | 0.14 | 0.31 | 0.15 | 0.31 | ||||||||
| Nonperforming Assets as % of Total Assets | 0.07 | % | 0.06 | % | 0.16 | % | 0.07 | % | 0.16 | % | |||
| STOCK PERFORMANCE | |||||||||||||
| High | $ | 28.55 | $ | 28.88 | $ | 27.39 | $ | 28.88 | $ | 28.98 | |||
| Low | 24.43 | 25.96 | 24.55 | 24.43 | 21.42 | ||||||||
| Close | $ | 27.89 | $ | 26.36 | $ | 25.79 | $ | 27.89 | $ | 25.79 | |||
| Average Daily Trading Volume | 25,342 | 24,019 | 28,958 | 24,681 | 29,620 | ||||||||
| (1) Tangible common equity ratio is a non-GAAP financial measure. For additional information, including a reconciliation to GAAP, refer to Page 4. | |||||||||||||
| CAPITAL CITY BANK GROUP, INC. | |||||||||||||||
| CONSOLIDATED STATEMENT OF FINANCIAL CONDITION | |||||||||||||||
| Unaudited | |||||||||||||||
| 2022 | 2021 | ||||||||||||||
| (Dollars in thousands) | Second Quarter | First Quarter | Fourth Quarter | Third Quarter | Second Quarter | ||||||||||
| ASSETS | |||||||||||||||
| Cash and Due From Banks | $ | 91,209 | $ | 77,963 | $ | 65,313 | $ | 73,132 | $ | 78,894 | |||||
| Funds Sold and Interest Bearing Deposits | 603,315 | 790,465 | 970,041 | 708,988 | 766,920 | ||||||||||
| Total Cash and Cash Equivalents | 694,524 | 868,428 | 1,035,354 | 782,120 | 845,814 | ||||||||||
| Investment Securities Available for Sale | 601,405 | 624,361 | 654,611 | 645,844 | 480,890 | ||||||||||
| Investment Securities Held to Maturity | 528,258 | 518,678 | 339,601 | 341,228 | 325,559 | ||||||||||
| Other Equity Securities | 900 | 855 | 861 | - | - | ||||||||||
| Total Investment Securities | 1,130,563 | 1,143,894 | 995,073 | 987,072 | 806,449 | ||||||||||
| Loans Held for Sale | 48,708 | 50,815 | 52,532 | 77,036 | 80,821 | ||||||||||
| Loans Held for Investment ("HFI"): | |||||||||||||||
| Commercial, Financial, & Agricultural | 247,902 | 230,213 | 223,086 | 218,929 | 292,953 | ||||||||||
| Real Estate - Construction | 225,664 | 174,293 | 174,394 | 177,443 | 149,884 | ||||||||||
| Real Estate - Commercial | 699,093 | 669,110 | 663,550 | 683,379 | 707,599 | ||||||||||
| Real Estate - Residential | 478,121 | 368,020 | 346,756 | 355,958 | 362,018 | ||||||||||
| Real Estate - Home Equity | 194,658 | 188,174 | 187,821 | 187,642 | 190,078 | ||||||||||
| Consumer | 359,906 | 347,785 | 321,511 | 309,983 | 298,464 | ||||||||||
| Other Loans | 6,854 | 6,692 | 13,265 | 6,792 | 6,439 | ||||||||||
| Overdrafts | 1,455 | 1,222 | 1,082 | 1,299 | 1,227 | ||||||||||
| Total Loans Held for Investment | 2,213,653 | 1,985,509 | 1,931,465 | 1,941,425 | 2,008,662 | ||||||||||
| Allowance for Credit Losses | (21,281 | ) | (20,756 | ) | (21,606 | ) | (21,500 | ) | (22,175 | ) | |||||
| Loans Held for Investment, Net | 2,192,372 | 1,964,753 | 1,909,859 | 1,919,925 | 1,986,487 | ||||||||||
| Premises and Equipment, Net | 82,932 | 82,518 | 83,412 | 84,750 | 85,745 | ||||||||||
| Goodwill and Other Intangibles | 93,173 | 93,213 | 93,253 | 93,293 | 93,333 | ||||||||||
| Other Real Estate Owned | 90 | 17 | 17 | 192 | 1,192 | ||||||||||
| Other Assets | 111,935 | 106,407 | 94,349 | 104,345 | 111,618 | ||||||||||
| Total Other Assets | 288,130 | 282,155 | 271,031 | 282,580 | 291,888 | ||||||||||
| Total Assets | $ | 4,354,297 | $ | 4,310,045 | $ | 4,263,849 | $ | 4,048,733 | $ | 4,011,459 | |||||
| LIABILITIES | |||||||||||||||
| Deposits: | |||||||||||||||
| Noninterest Bearing Deposits | $ | 1,724,671 | $ | 1,704,329 | $ | 1,668,912 | $ | 1,592,345 | $ | 1,552,864 | |||||
| NOW Accounts | 1,036,757 | 1,062,498 | 1,070,154 | 926,201 | 970,705 | ||||||||||
| Money Market Accounts | 289,337 | 288,877 | 274,611 | 286,065 | 280,805 | ||||||||||
| Regular Savings Accounts | 639,594 | 614,599 | 599,811 | 559,714 | 539,477 | ||||||||||
| Certificates of Deposit | 95,899 | 95,204 | 99,374 | 101,637 | 103,070 | ||||||||||
| Total Deposits | 3,786,258 | 3,765,507 | 3,712,862 | 3,465,962 | 3,446,921 | ||||||||||
| Short-Term Borrowings | 39,463 | 30,865 | 34,557 | 51,410 | 47,200 | ||||||||||
| Subordinated Notes Payable | 52,887 | 52,887 | 52,887 | 52,887 | 52,887 | ||||||||||
| Other Long-Term Borrowings | 612 | 806 | 884 | 1,610 | 1,720 | ||||||||||
| Other Liabilities | 93,319 | 77,323 | 67,735 | 113,720 | 105,534 | ||||||||||
| Total Liabilities | 3,972,539 | 3,927,388 | 3,868,925 | 3,685,589 | 3,654,262 | ||||||||||
| Temporary Equity | 10,083 | 10,512 | 11,758 | 14,276 | 21,317 | ||||||||||
| SHAREOWNERS' EQUITY | |||||||||||||||
| Common Stock | 170 | 169 | 169 | 169 | 169 | ||||||||||
| Additional Paid-In Capital | 35,738 | 35,188 | 34,423 | 33,876 | 33,560 | ||||||||||
| Retained Earnings | 376,532 | 370,531 | 364,788 | 359,550 | 345,574 | ||||||||||
| Accumulated Other Comprehensive Loss, Net of Tax | (40,765 | ) | (33,743 | ) | (16,214 | ) | (44,727 | ) | (43,423 | ) | |||||
| Total Shareowners' Equity | 371,675 | 372,145 | 383,166 | 348,868 | 335,880 | ||||||||||
| Total Liabilities, Temporary Equity and Shareowners' Equity | $ | 4,354,297 | $ | 4,310,045 | $ | 4,263,849 | $ | 4,048,733 | $ | 4,011,459 | |||||
| OTHER BALANCE SHEET DATA | |||||||||||||||
| Earning Assets | $ | 3,996,238 | $ | 3,970,684 | $ | 3,949,111 | $ | 3,714,521 | $ | 3,662,852 | |||||
| Interest Bearing Liabilities | 2,154,549 | 2,145,736 | 2,132,278 | 1,979,524 | 1,995,864 | ||||||||||
| Book Value Per Diluted Share | $ | 21.89 | $ | 21.94 | $ | 22.63 | $ | 20.63 | $ | 19.87 | |||||
| Tangible Book Value Per Diluted Share(1) | 16.40 | 16.44 | 17.12 | 15.11 | 14.35 | ||||||||||
| Actual Basic Shares Outstanding | 16,959 | 16,948 | 16,892 | 16,878 | 16,874 | ||||||||||
| Actual Diluted Shares Outstanding | 16,982 | 16,962 | 16,935 | 16,912 | 16,901 | ||||||||||
| (1) Tangible book value per diluted share is a non-GAAP financial measure. For additional information, including a reconciliation to GAAP, refer to Page 4. | |||||||||||||||
| CAPITAL CITY BANK GROUP, INC. | |||||||||||||||||||||
| CONSOLIDATED STATEMENT OF OPERATIONS | |||||||||||||||||||||
| Unaudited | |||||||||||||||||||||
| 2022 | 2021 | June 30, | |||||||||||||||||||
| (Dollars in thousands, except per share data) | Second Quarter | First Quarter | Fourth Quarter | Third Quarter | Second Quarter | 2022 | 2021 | ||||||||||||||
| INTEREST INCOME | |||||||||||||||||||||
| Loans, including Fees | $ | 24,072 | $ | 22,133 | $ | 22,744 | $ | 25,885 | $ | 24,582 | $ | 46,205 | $ | 47,932 | |||||||
| Investment Securities | 3,840 | 2,896 | 2,505 | 2,350 | 2,054 | 6,736 | 3,937 | ||||||||||||||
| Federal Funds Sold and Interest Bearing Deposits | 1,408 | 409 | 300 | 285 | 200 | 1,817 | 413 | ||||||||||||||
| Total Interest Income | 29,320 | 25,438 | 25,549 | 28,520 | 26,836 | 54,758 | 52,282 | ||||||||||||||
| INTEREST EXPENSE | |||||||||||||||||||||
| Deposits | 266 | 224 | 213 | 210 | 208 | 490 | 416 | ||||||||||||||
| Short-Term Borrowings | 343 | 192 | 307 | 317 | 324 | 535 | 736 | ||||||||||||||
| Subordinated Notes Payable | 370 | 317 | 306 | 307 | 308 | 687 | 615 | ||||||||||||||
| Other Long-Term Borrowings | 8 | 9 | 12 | 14 | 16 | 17 | 37 | ||||||||||||||
| Total Interest Expense | 987 | 742 | 838 | 848 | 856 | 1,729 | 1,804 | ||||||||||||||
| Net Interest Income | 28,333 | 24,696 | 24,711 | 27,672 | 25,980 | 53,029 | 50,478 | ||||||||||||||
| Provision for Credit Losses | 1,542 | - | - | - | (571 | ) | 1,542 | (1,553 | ) | ||||||||||||
| Net Interest Income after Provision for Credit Losses | 26,791 | 24,696 | 24,711 | 27,672 | 26,551 | 51,487 | 52,031 | ||||||||||||||
| NONINTEREST INCOME | |||||||||||||||||||||
| Deposit Fees | 5,447 | 5,191 | 5,300 | 5,075 | 4,236 | 10,638 | 8,507 | ||||||||||||||
| Bank Card Fees | 4,034 | 3,763 | 3,872 | 3,786 | 3,998 | 7,797 | 7,616 | ||||||||||||||
| Wealth Management Fees | 4,403 | 6,070 | 3,706 | 3,623 | 3,274 | 10,473 | 6,364 | ||||||||||||||
| Mortgage Banking Revenues | 9,065 | 8,946 | 9,800 | 12,283 | 13,217 | 18,011 | 30,342 | ||||||||||||||
| Other | 1,954 | 1,848 | 1,994 | 1,807 | 1,748 | 3,802 | 3,470 | ||||||||||||||
| Total Noninterest Income | 24,903 | 25,818 | 24,672 | 26,574 | 26,473 | 50,721 | 56,299 | ||||||||||||||
| NONINTEREST EXPENSE | |||||||||||||||||||||
| Compensation | 25,383 | 24,856 | 24,783 | 25,245 | 25,378 | 50,239 | 51,442 | ||||||||||||||
| Occupancy, Net | 6,075 | 6,093 | 5,960 | 6,032 | 5,973 | 12,168 | 11,940 | ||||||||||||||
| Other Real Estate, Net | (29 | ) | 25 | 26 | (1,126 | ) | (270 | ) | (4 | ) | (388 | ) | |||||||||
| Pension Settlement | 169 | 209 | 572 | 500 | 2,000 | 378 | 2,000 | ||||||||||||||
| Other | 8,900 | 8,050 | 8,866 | 9,051 | 9,042 | 16,950 | 17,605 | ||||||||||||||
| Total Noninterest Expense | 40,498 | 39,233 | 40,207 | 39,702 | 42,123 | 79,731 | 82,599 | ||||||||||||||
| OPERATING PROFIT | 11,196 | 11,281 | 9,176 | 14,544 | 10,901 | 22,477 | 25,731 | ||||||||||||||
| Income Tax Expense | 2,177 | 2,235 | 2,040 | 2,949 | 2,059 | 4,412 | 4,846 | ||||||||||||||
| Net Income | 9,019 | 9,046 | 7,136 | 11,595 | 8,842 | 18,065 | 20,885 | ||||||||||||||
| Pre-Tax Income Attributable to Noncontrolling Interest | (306 | ) | (591 | ) | (764 | ) | (1,504 | ) | (1,415 | ) | (897 | ) | (3,952 | ) | |||||||
| NET INCOME ATTRIBUTABLE TO COMMON SHAREOWNERS | $ | 8,713 | $ | 8,455 | $ | 6,372 | $ | 10,091 | $ | 7,427 | $ | 17,168 | $ | 16,933 | |||||||
| PER COMMON SHARE | |||||||||||||||||||||
| Basic Net Income | $ | 0.51 | $ | 0.50 | $ | 0.38 | $ | 0.60 | $ | 0.44 | $ | 1.01 | $ | 1.00 | |||||||
| Diluted Net Income | 0.51 | 0.50 | 0.38 | 0.60 | 0.44 | 1.01 | 1.00 | ||||||||||||||
| Cash Dividend | $ | 0.16 | $ | 0.16 | $ | 0.16 | $ | 0.16 | $ | 0.15 | $ | 0.32 | $ | 0.30 | |||||||
| AVERAGE SHARES | |||||||||||||||||||||
| Basic | 16,949 | 16,931 | 16,880 | 16,875 | 16,858 | 16,940 | 16,848 | ||||||||||||||
| Diluted | 16,971 | 16,946 | 16,923 | 16,909 | 16,885 | 16,958 | 16,874 | ||||||||||||||
| CAPITAL CITY BANK GROUP, INC. | |||||||||||||||||||||
| ALLOWANCE FOR CREDIT LOSSES ("ACL") | |||||||||||||||||||||
| AND CREDIT QUALITY | |||||||||||||||||||||
| Unaudited | |||||||||||||||||||||
| 2022 | 2021 | June 30, | |||||||||||||||||||
| (Dollars in thousands, except per share data) | Second Quarter | First Quarter | Fourth Quarter | Third Quarter | Second Quarter | 2022 | 2021 | ||||||||||||||
| ACL - HELD FOR INVESTMENT LOANS | |||||||||||||||||||||
| Balance at Beginning of Period | $ | 20,756 | $ | 21,606 | $ | 21,500 | $ | 22,175 | $ | 22,026 | $ | 21,606 | $ | 23,816 | |||||||
| Provision for Credit Losses | 1,670 | (79 | ) | 200 | (546 | ) | (184 | ) | 1,591 | (2,496 | ) | ||||||||||
| Net Charge-Offs (Recoveries) | 1,145 | 771 | 94 | 129 | (333 | ) | 1,916 | (855 | ) | ||||||||||||
| Balance at End of Period | $ | 21,281 | $ | 20,756 | $ | 21,606 | $ | 21,500 | $ | 22,175 | $ | 21,281 | $ | 22,175 | |||||||
| As a % of Loans HFI | 0.96 | % | 1.05 | % | 1.12 | % | 1.11 | % | 1.10 | % | 0.96 | % | 1.10 | % | |||||||
| As a % of Nonperforming Loans | 677.57 | % | 760.83 | % | 499.93 | % | 710.39 | % | 433.93 | % | 677.57 | % | 433.93 | % | |||||||
| ACL - UNFUNDED COMMITMENTS | |||||||||||||||||||||
| Balance at Beginning of Period | 2,976 | $ | 2,897 | $ | 3,117 | $ | 2,587 | $ | 2,974 | $ | 2,897 | $ | 1,644 | ||||||||
| Provision for Credit Losses | (123 | ) | 79 | (220 | ) | 530 | (387 | ) | (44 | ) | 943 | ||||||||||
| Balance at End of Period(1) | 2,853 | 2,976 | 2,897 | 3,117 | 2,587 | 2,853 | 2,587 | ||||||||||||||
| ACL - DEBT SECURITIES | |||||||||||||||||||||
| Provision for Credit Losses | $ | (5 | ) | $ | - | $ | 20 | $ | 16 | $ | - | $ | (5 | ) | $ | - | |||||
| CHARGE-OFFS | |||||||||||||||||||||
| Commercial, Financial and Agricultural | $ | 1,104 | $ | 73 | $ | 101 | $ | 37 | $ | 32 | $ | 1,177 | $ | 101 | |||||||
| Real Estate - Construction | - | - | - | - | - | - | - | ||||||||||||||
| Real Estate - Commercial | - | 266 | - | 405 | - | 266 | - | ||||||||||||||
| Real Estate - Residential | - | - | 20 | 17 | 65 | - | 71 | ||||||||||||||
| Real Estate - Home Equity | - | 33 | 9 | 15 | 74 | 33 | 79 | ||||||||||||||
| Consumer | 533 | 622 | 254 | 221 | 230 | 1,155 | 794 | ||||||||||||||
| Overdrafts | 660 | 780 | 678 | 1,093 | 440 | 1,440 | 932 | ||||||||||||||
| Total Charge-Offs | $ | 2,297 | $ | 1,774 | $ | 1,062 | $ | 1,788 | $ | 841 | $ | 4,071 | $ | 1,977 | |||||||
| RECOVERIES | |||||||||||||||||||||
| Commercial, Financial and Agricultural | $ | 59 | $ | 165 | $ | 148 | $ | 66 | $ | 103 | $ | 224 | $ | 239 | |||||||
| Real Estate - Construction | - | 8 | - | 10 | - | 8 | - | ||||||||||||||
| Real Estate - Commercial | 56 | 29 | 25 | 169 | 26 | 85 | 671 | ||||||||||||||
| Real Estate - Residential | 115 | 27 | 33 | 401 | 244 | 142 | 319 | ||||||||||||||
| Real Estate - Home Equity | 67 | 58 | 173 | 46 | 70 | 125 | 194 | ||||||||||||||
| Consumer | 453 | 183 | 214 | 334 | 332 | 636 | 643 | ||||||||||||||
| Overdrafts | 402 | 533 | 375 | 633 | 399 | 935 | 766 | ||||||||||||||
| Total Recoveries | $ | 1,152 | $ | 1,003 | $ | 968 | $ | 1,659 | $ | 1,174 | $ | 2,155 | $ | 2,832 | |||||||
| NET CHARGE-OFFS (RECOVERIES) | $ | 1,145 | $ | 771 | $ | 94 | $ | 129 | $ | (333 | ) | $ | 1,916 | $ | (855 | ) | |||||
| Net Charge-Offs as a % of Average Loans HFI(2) | 0.22 | % | 0.16 | % | 0.02 | % | 0.03 | % | (0.07 | )% | 0.19 | % | (0.08 | )% | |||||||
| CREDIT QUALITY | |||||||||||||||||||||
| Nonaccruing Loans | $ | 3,141 | $ | 2,728 | $ | 4,322 | $ | 3,026 | $ | 5,110 | |||||||||||
| Other Real Estate Owned | 90 | 17 | 17 | 192 | 1,192 | ||||||||||||||||
| Total Nonperforming Assets ("NPAs") | $ | 3,231 | $ | 2,745 | $ | 4,339 | $ | 3,218 | $ | 6,302 | |||||||||||
| Past Due Loans 30-89 Days | $ | 3,554 | $ | 3,120 | $ | 3,600 | $ | 3,360 | $ | 3,745 | |||||||||||
| Past Due Loans 90 Days or More | - | - | - | - | - | ||||||||||||||||
| Classified Loans | 19,620 | 22,348 | 17,912 | 16,310 | 19,397 | ||||||||||||||||
| Performing Troubled Debt Restructurings | $ | 6,728 | $ | 7,304 | $ | 7,643 | $ | 7,919 | $ | 8,992 | |||||||||||
| Nonperforming Loans as a % of Loans HFI | 0.14 | % | 0.14 | % | 0.22 | % | 0.16 | % | 0.25 | % | |||||||||||
| NPAs as a % of Loans HFI and Other Real Estate | 0.15 | % | 0.14 | % | 0.22 | % | 0.17 | % | 0.31 | % | |||||||||||
| NPAs as a % of Total Assets | 0.07 | % | 0.06 | % | 0.10 | % | 0.08 | % | 0.16 | % | |||||||||||
| (1) Recorded in other liabilities | |||||||||||||||||||||
| (2) Annualized | |||||||||||||||||||||
| CAPITAL CITY BANK GROUP, INC. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| AVERAGE BALANCE AND INTEREST RATES | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Unaudited | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Second Quarter 2022 | First Quarter 2022 | Fourth Quarter 2021 | Third Quarter 2021 | Second Quarter 2021 | Jun 2022 YTD | Jun 2021 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 Held for Sale | $ | 52,860 | $ | 711 | 5.39 | % | $ | 43,004 | $ | 397 | 3.75 | % | $ | 62,809 | $ | 522 | 3.29 | % | $ | 67,753 | 497 | 2.91 | % | $ | 77,101 | $ | 566 | 2.94 | % | $ | 47,959 | $ | 1,108 | 4.66 | % | $ | 91,591 | $ | 1,536 | 3.38 | % | ||||||||||||||||
| Loans Held for Investment(1) | 2,084,679 | 23,433 | 4.51 | 1,963,578 | 21,811 | 4.50 | 1,948,324 | 22,296 | 4.54 | 1,974,132 | 25,458 | 5.12 | 2,036,781 | 24,095 | 4.74 | 2,024,463 | 45,244 | 4.51 | 2,040,551 | 46,578 | 4.71 | ||||||||||||||||||||||||||||||||||||
| Investment Securities | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Taxable Investment Securities | 1,142,269 | 3,834 | 1.34 | 1,056,736 | 2,889 | 1.10 | 987,700 | 2,493 | 1.00 | 904,962 | 2,333 | 1.03 | 687,882 | 2,036 | 1.18 | 1,099,739 | 6,723 | 1.22 | 608,801 | 3,899 | 1.28 | ||||||||||||||||||||||||||||||||||||
| Tax-Exempt Investment Securities(1) | 2,488 | 10 | 1.73 | 2,409 | 10 | 1.60 | 3,380 | 17 | 2.07 | 4,332 | 25 | 2.31 | 3,530 | 23 | 2.58 | 2,449 | 20 | 1.67 | 3,686 | 48 | 2.60 | ||||||||||||||||||||||||||||||||||||
| Total Investment Securities | 1,144,757 | 3,844 | 1.34 | 1,059,145 | 2,899 | 1.10 | 991,080 | 2,510 | 1.01 | 909,294 | 2,358 | 1.03 | 691,412 | 2,059 | 1.19 | 1,102,188 | 6,743 | 1.23 | 612,487 | 3,947 | 1.29 | ||||||||||||||||||||||||||||||||||||
| Federal Funds Sold and Interest Bearing Deposits | 691,925 | 1,408 | 0.82 | 873,097 | 409 | 0.19 | 789,100 | 300 | 0.15 | 741,944 | 285 | 0.15 | 818,616 | 200 | 0.10 | 782,011 | 1,817 | 0.47 | 816,638 | 414 | 0.10 | ||||||||||||||||||||||||||||||||||||
| Total Earning Assets | 3,974,221 | $ | 29,396 | 2.97 | % | 3,938,824 | $ | 25,516 | 2.63 | % | 3,791,313 | $ | 25,628 | 2.68 | % | 3,693,123 | $ | 28,598 | 3.07 | % | 3,623,910 | $ | 26,920 | 2.98 | % | 3,956,621 | $ | 54,912 | 2.80 | % | 3,561,267 | $ | 52,475 | 2.97 | % | ||||||||||||||||||||||
| Cash and Due From Banks | 79,730 | 74,253 | 73,752 | 72,773 | 74,076 | 77,007 | 71,541 | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Allowance for Loan Losses | (20,984 | ) | (21,655 | ) | (22,127 | ) | (22,817 | ) | (22,794 | ) | (21,318 | ) | (23,457 | ) | |||||||||||||||||||||||||||||||||||||||||||
| Other Assets | 288,421 | 275,353 | 284,999 | 283,534 | 281,157 | 281,922 | 279,956 | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Total Assets | $ | 4,321,388 | $ | 4,266,775 | $ | 4,127,937 | $ | 4,026,613 | $ | 3,956,349 | $ | 4,294,232 | $ | 3,889,307 | |||||||||||||||||||||||||||||||||||||||||||
| LIABILITIES: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Interest Bearing Deposits | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| NOW Accounts | $ | 1,033,190 | $ | 120 | 0.05 | % | $ | 1,079,906 | $ | 86 | 0.03 | % | $ | 963,778 | $ | 72 | 0.03 | % | $ | 945,788 | $ | 72 | 0.03 | % | $ | 966,649 | $ | 74 | 0.03 | % | $ | 1,056,419 | $ | 206 | 0.04 | % | $ | 976,031 | $ | 150 | 0.03 | % | |||||||||||||||
| Money Market Accounts | 286,210 | 36 | 0.05 | 285,406 | 33 | 0.05 | 289,335 | 34 | 0.05 | 282,860 | 34 | 0.05 | 272,138 | 33 | 0.05 | 285,810 | 69 | 0.05 | 270,990 | 66 | 0.05 | ||||||||||||||||||||||||||||||||||||
| Savings Accounts | 628,472 | 77 | 0.05 | 599,359 | 72 | 0.05 | 573,563 | 71 | 0.05 | 551,383 | 68 | 0.05 | 529,844 | 64 | 0.05 | 613,996 | 149 | 0.05 | 511,152 | 124 | 0.05 | ||||||||||||||||||||||||||||||||||||
| Time Deposits | 95,132 | 33 | 0.14 | 97,054 | 33 | 0.14 | 101,037 | 36 | 0.14 | 102,765 | 36 | 0.14 | 102,995 | 37 | 0.15 | 96,088 | 66 | 0.14 | 102,544 | 76 | 0.15 | ||||||||||||||||||||||||||||||||||||
| Total Interest Bearing Deposits | 2,043,004 | 266 | 0.05 | % | 2,061,725 | 224 | 0.04 | % | 1,927,713 | 213 | 0.04 | % | 1,882,796 | 210 | 0.04 | % | 1,871,626 | 208 | 0.04 | % | 2,052,313 | 490 | 0.05 | % | 1,860,717 | 416 | 0.05 | % | |||||||||||||||||||||||||||||
| Short-Term Borrowings | 31,782 | 343 | 4.33 | % | 32,353 | 192 | 2.40 | % | 46,355 | 307 | 2.63 | % | 49,773 | 317 | 2.53 | % | 51,152 | 324 | 2.54 | % | 32,066 | 535 | 3.36 | % | 59,049 | 736 | 2.51 | % | |||||||||||||||||||||||||||||
| Subordinated Notes Payable | 52,887 | 370 | 2.76 | 52,887 | 317 | 2.40 | 52,887 | 306 | 2.26 | 52,887 | 307 | 2.27 | 52,887 | 308 | 2.30 | 52,887 | 687 | 2.58 | 52,887 | 615 | 2.31 | ||||||||||||||||||||||||||||||||||||
| Other Long-Term Borrowings | 722 | 8 | 4.54 | 833 | 9 | 4.49 | 1,414 | 12 | 3.50 | 1,652 | 14 | 3.37 | 1,762 | 16 | 3.38 | 777 | 17 | 4.51 | 2,246 | 37 | 3.26 | ||||||||||||||||||||||||||||||||||||
| Total Interest Bearing Liabilities | 2,128,395 | $ | 987 | 0.19 | % | 2,147,798 | $ | 742 | 0.14 | % | 2,028,369 | $ | 838 | 0.16 | % | 1,987,108 | $ | 848 | 0.17 | % | 1,977,427 | $ | 856 | 0.17 | % | 2,138,043 | $ | 1,729 | 0.16 | % | 1,974,899 | $ | 1,804 | 0.18 | % | ||||||||||||||||||||||
| Noninterest Bearing Deposits | 1,722,325 | 1,652,337 | 1,621,432 | 1,564,892 | 1,515,726 | 1,687,524 | 1,453,121 | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Other Liabilities | 87,207 | 72,166 | 114,657 | 112,707 | 107,801 | 79,728 | 109,417 | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Total Liabilities | 3,937,927 | 3,872,301 | 3,764,458 | 3,664,707 | 3,600,954 | 3,905,295 | 3,537,437 | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Temporary Equity | 10,096 | 10,518 | 13,339 | 20,446 | 26,355 | 10,306 | 24,178 | ||||||||||||||||||||||||||||||||||||||||||||||||||
| SHAREOWNERS' EQUITY: | 373,365 | 383,956 | 350,140 | 341,460 | 329,040 | 378,631 | 327,692 | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Total Liabilities, Temporary Equity and Shareowners' Equity | $ | 4,321,388 | $ | 4,266,775 | $ | 4,127,937 | $ | 4,026,613 | $ | 3,956,349 | $ | 4,294,232 | $ | 3,889,307 | |||||||||||||||||||||||||||||||||||||||||||
| Interest Rate Spread | $ | 28,409 | 2.78 | % | $ | 24,774 | 2.49 | % | $ | 24,790 | 2.52 | % | $ | 27,750 | 2.91 | % | $ | 26,064 | 2.81 | % | $ | 53,183 | 2.64 | % | $ | 50,671 | 2.79 | % | |||||||||||||||||||||||||||||
| Interest Income and Rate Earned(1) | 29,396 | 2.97 | 25,516 | 2.63 | 25,628 | 2.68 | 28,598 | 3.07 | 26,920 | 2.98 | 54,912 | 2.80 | 52,475 | 2.97 | |||||||||||||||||||||||||||||||||||||||||||
| Interest Expense and Rate Paid(2) | 987 | 0.10 | 742 | 0.08 | 838 | 0.09 | 848 | 0.09 | 856 | 0.09 | 1,729 | 0.09 | 1,804 | 0.10 | |||||||||||||||||||||||||||||||||||||||||||
| Net Interest Margin | $ | 28,409 | 2.87 | % | $ | 24,774 | 2.55 | % | $ | 24,790 | 2.60 | % | $ | 27,750 | 2.98 | % | $ | 26,064 | 2.89 | % | $ | 53,183 | 2.71 | % | $ | 50,671 | 2.87 | % | |||||||||||||||||||||||||||||
| (1) Interest and average rates are calculated on a tax-equivalent basis using a 21% 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
