Capital City Bank Group, Inc.
Reports Fourth Quarter and Full Year 2007 Results
Tallahassee, FL. – Capital City Bank Group, Inc. (NASDAQ: CCBG) today reported net income for the fourth quarter of 2007 totaling $7.7 million ($0.44 per diluted share) compared to $8.9 million ($0.48 per diluted share) in the fourth quarter of 2006 and $7.2 million ($0.41 per diluted share) for the third quarter of 2007. Net income for the year ended 2007 totaled $29.7 million ($1.66 per diluted share) compared to $33.3 million ($1.79 per diluted share) for 2006. Earnings per share reflect the company’s repurchase of 447,823 common shares during the fourth quarter and a total of 1,404,364 common shares for the full-year 2007.
“Net income for the final quarter and the full year were lower in 2007 than for the comparable periods of 2006 as a result of margin compression and a higher loan loss provision,” said William G. Smith, Jr., Chairman, President, and CEO of Capital City Bank Group, Inc. “Consistent with the trends throughout the banking industry, our funding costs increased over the course of the year, but began to decline as the Fed lowered rates during the fourth quarter.”
“Credit quality and risk assessment are clearly the most important issues we are focused upon as we move into 2008. Accordingly, during the fourth quarter we recognized a higher provision for loan losses putting coverage at .95% of total loans, or 72% of nonperforming loans. We remain confident that the overall credit quality throughout our loan portfolio is sound and there are no significant concentrations in any particular borrower segment.”
“Noninterest income growth was favorable throughout the year and we were successful in reducing our total expenses year over year. Due to our strong capital position and the current economic environment we had opportunities to repurchase a significant amount of our common stock. We expect these factors to continue to benefit the company during 2008,” said Smith.
The Return on Average Assets was 1.18% and the Return on Average Equity was 9.68% for 2007 compared to 1.29% and 10.48%, respectively, for 2006. For the fourth quarter of 2007, the aforementioned metrics were 1.21% and 10.16% compared to 1.37% and 10.84% for the comparable quarter in 2006 and 1.15% and 9.44% for the third quarter of 2007.
Discussion of Financial Condition
Average earning assets were $2.191 billion for the fourth quarter, a decrease of $46.8 million, or 2.1%, from the fourth quarter of 2006 due to share repurchase activity, which approximated $43.2 million for 2007, and investment in office expansion. Average loans decreased $95.7 million, or 4.8% during the same period reflecting of a high level of principal pay-downs and loan pay-offs, including the pay-off of several larger commercial loans, and a slowing of lending activity. On a linked quarter basis, however, average loans were up slightly. Compared to the third quarter of 2007, average earning assets increased $46.5 million, or 2.2%, due to an increase in deposits, which is discussed in more detail below.
Nonperforming assets of $28.2 million increased from the prior year-end by $19.4 million and from the linked third quarter by $14.1 million. Nonaccrual loans increased $17.1 million and $12.7 million, respectively, from the same prior-year periods. The increase in nonaccrual loans in the fourth quarter primarily reflects the addition of three large loan relationships totaling $10.7 million, which had been internally identified as problem loans as of the end of the third quarter. Two of the aforementioned loans totaling $4.8 million are to borrowers employed in the real estate market and the other loan relationship totaling $5.9 million consists of loans to a commercial business. Other real estate owned totaled $3.0 million at year-end compared to $1.7 million at the end of the prior quarter and $0.7 million at year-end 2006. Nonperforming assets represented 1.47% of loans and other real estate at the end of the fourth quarter compared to .74% at the end of the third quarter and .44% at year-end 2006.
Average total deposits were $2.017 billion for the fourth quarter, a decrease of $11.7 million, or .58% from the fourth quarter of 2006 due primarily to a decline in savings ($14.5 million) and certificates of deposit ($13.4 million) balances. NOW and money market deposits, combined, experienced a net increase of $78.6 million for the same period driven by strong growth in public funds deposits during the fourth quarter of 2007, most of which are negotiated NOW accounts, while noninterest bearing deposits declined $62.5 million. Compared to the linked third quarter of 2007, average deposits increased $62.6 million, or 3.2% due to a significant increase in the level of public funds, a portion of which is attributable to normal seasonal activity, while the balance is due to changing market conditions. During the fourth quarter several local government entities, which are clients, transferred significant balances from the State Board of Administration’s Local Government Investment Pool to Capital City Bank. These balances are reflected in our NOW account deposits, which increased, based on monthly averages, from $521 million in September to $719 million in December. While this growth added to our net interest income, public funds are generally higher cost deposits, which drove our average cost of funds up and thereby lowered our net interest margin percentage for the quarter. This is addressed in greater detail under “Discussion of Operating Results” below. As is normal with seasonal deposits, management expects deposit levels to decline during the first quarter of 2008.
The Company had approximately $84.0 million in average net overnight funds sold for the fourth quarter of 2007 as compared to $31.9 million in average net overnight funds sold in the third quarter of 2007 and $26.1 million in the fourth quarter of 2006. Loan balances, which declined through the first nine months of 2007, and the recent influx of public deposits contributed to the growth in overnight funds, which was partially offset by the repurchase of $43 million in CCBG common stock during 2007.
Discussion of Operating Results
Tax equivalent net interest income for the three and twelve months ended December 31, 2007, was $28.2 million and $114.7 million, respectively, compared to $30.2 million and $120.9 million for the comparable periods in 2006. Year-over-year, the decline in net interest income was due to an increase in interest expense driven by higher average rates, an unfavorable shift in our deposit mix as clients sought higher yielding deposit products, and a $75 million reduction in the level of average earning assets. The full year net interest margin of 5.25% decreased 10 basis points from 2006 attributable to a 36 basis point increase in our cost of funds, partially offset by a 26 basis point increase in the earning asset yield. The net interest margin declined 25 basis points between the fourth quarters of 2007 and 2006, reflecting a 15 basis point reduction in the yield on earning assets and a 10 basis point increase in the cost of funds. While management believes it has been successful in neutralizing the impact of the Fed rate reductions during the fourth quarter of 2007, the influx of higher cost public funds (primarily negotiated NOW accounts – See “Discussion of Financial Condition” for additional information) and a higher average rate on certificates of deposit drove cost of funds up relative to the fourth quarter of 2006. On a linked quarter basis, fourth quarter tax equivalent net interest income decreased $321,000, or 1.1%, and the net interest margin declined 17 basis points. The yield on earning assets declined 25 basis points attributable to a 100 basis point reduction in the Fed’s target rate, a $14.1 million increase in nonperforming assets and a slightly unfavorable shift in asset mix. The average cost of funds declined eight basis points reflecting a reduction of average rates paid in response to the Fed’s rate cuts; however, a significant portion of this benefit was offset by the influx of higher costs public funds as noted above. Further, it should be noted that net interest income in all comparative periods has been impacted by the rising level of nonperforming assets, which has increased from $8.7 million at December 31, 2006 to $28.2 million at December 31. 2007; and the lower level of noninterest bearing deposits, which have declined throughout 2006 and 2007 reflecting the disintermediation of noninterest bearing funds in a higher interest rate environment.
The provision for loan losses for the current quarter and full year was $1.7 million and $6.2 million, respectively, compared to $0.5 million and $2.0 million for the same periods in 2006. The increase in both periods is attributable an increase in charge-offs and a higher level of required reserves reflective of the current credit environment that has been impacted by a slowdown in housing and real estate markets. For the full year, net charge-offs totaled $5.3 million, or .27%, of average loans compared to $2.2 million, or .11% in 2006. For the fourth quarter, net charge-offs totaled $1.6 million, or .34% of average loans compared to $1.0 million, or .21% in the linked third quarter and $0.6 million, or .11% for the fourth quarter of 2006. At quarter-end, the allowance for loan losses was .95% of outstanding loans (net of overdrafts) and provided coverage of 72% of nonperforming loans.
Noninterest income for the three and twelve months ended December 31, 2007, was $15.8 million and $59.3 million, respectively, compared to $14.4 million and $55.6 million for the comparable periods in 2006. Higher deposit fees ($862,000), data processing fees ($144,000), card processing fees ($166,000), and other income ($621,000) drove the improvement for the three month period. Increases in deposit fees ($1.5 million), retail brokerage fees ($419,000), card processing fees ($931,000), and other income ($801,000) were the primary reasons for the improvement for the twelve month period. Compared to the linked third quarter, noninterest income rose $1.4 million or 9.6% due to higher deposit fees and other income, which included a one-time gain ($540,000 before-tax) on the sale of a banking office. The increase in deposit fees across all periods reflects higher activity levels and improved collection.
Noninterest expense continues to be very well controlled as evidenced by a nominal increase of $1.6 million, or 5.4% for the three month period and $424,000, or .35% for the twelve month period, as compared to the same periods in 2006. The increase in each period is attributable to a one-time, pre-tax charge of $1.9 million, which was recorded in the fourth quarter of 2007 to establish a litigation reserve1. Capital City Bank is a member of Visa, U.S.A. and this reserve was established in connection with lawsuits filed against Visa, U.S.A., i.e. the “Covered” litigation. CCBG currently anticipates that its proportional share of the proceeds of Visa’s planned initial public offering will more than offset any liabilities related to its pro-rata share of the “Covered” litigation. Compensation expense for both periods reflects reduced expense levels for performance based incentive plans and lower pension expense. Lower expense for courier services also contributed positively to both periods reflective of management’s implementation during the first half of 2007 of a new process whereby the daily work from the offices is transmitted electronically rather than by courier.
Income tax expense for the three and twelve months was $2.4 million and $13.7 million, respectively, compared to $4.7 million and $17.9 million for the same periods in 2006. During the fourth quarter of 2007, the company trued-up its deferred tax liabilities. As a result, income tax expense was reduced by $937,000 in the current quarter.
About Capital City Bank Group, Inc.
Capital City Bank Group, Inc. (NASDAQ: CCBG) is one of the largest publicly traded financial services companies headquartered in Florida and has approximately $2.6 billion in assets. The Company provides a full range of banking services, including traditional deposit and credit services, asset management, trust, mortgage banking, merchant services, bankcards, data processing and securities brokerage services. The Company's bank subsidiary, Capital City Bank, was founded in 1895 and now has 71 banking offices, three mortgage lending offices, and 79 ATMs in Florida, Georgia and Alabama. In 2006, Mergent, Inc., a leading provider of information on publicly traded companies, named the Company as a Dividend Achiever. To be named a Dividend Achiever, a public company must have increased its regular cash dividends for at least 10 consecutive years. Of all publicly traded U.S. companies that pay dividends, less than three percent made this list. Capital City Bank Group, Inc. was also named to this list in 2005. 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: our ability to integrate acquisitions; the strength of the U.S. economy and the local economies where we conduct operations; harsh weather conditions; fluctuations in inflation, interest rates, or monetary policies; changes in the stock market and other capital and real estate markets; legislative or regulatory changes; customer acceptance of third-party products and services; increased competition and its effect on pricing; technological changes; changes in consumer spending and savings habits; our growth and profitability; 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, 2006, 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.
1 The nature and circumstances surrounding this one-time charge, which is expected to be reversed upon consummation of Visa, Inc.’s planned initial public offering, is fully explained in Form 8-Ks filed with the SEC by the Company
on 1/10/08 and 1/22/08.
EARNINGS HIGHLIGHTS | ||||||||||||||||
Three Months Ended | Twelve Months Ended | |||||||||||||||
Dec 31, | Sept 30, | Dec 31, | Dec 31, | Dec 31, | ||||||||||||
(Dollars in thousands, except per share data) | 2007 | 2007 | 2006 | 2007 | 2006 | |||||||||||
EARNINGS | ||||||||||||||||
Net Income | $ | 7,664 | 7,171 | 8,850 | 29,683 | 33,265 | ||||||||||
Diluted Earnings Per Common Share | 0.44 | 0.41 | 0.48 | 1.66 | 1.79 | |||||||||||
PERFORMANCE | ||||||||||||||||
Return on Average Equity | 10.16 | % | 9.44 | % | 10.84 | % | 9.68 | % | 10.48 | % | ||||||
Return on Average Assets | 1.21 | 1.15 | 1.37 | 1.18 | 1.29 | |||||||||||
Net Interest Margin | 5.10 | 5.27 | 5.35 | 5.25 | 5.35 | |||||||||||
Noninterest Income as % of Operating Revenue | 36.49 | 34.08 | 32.71 | 34.57 | 31.81 | |||||||||||
Efficiency Ratio | 68.51 | 66.27 | 63.99 | 66.77 | 65.42 | |||||||||||
CAPITAL ADEQUACY | ||||||||||||||||
Tier 1 Capital Ratio | 13.05 | % | 13.74 | % | 14.00 | % | 13.05 | % | 14.00 | % | ||||||
Total Capital Ratio | 14.05 | 14.76 | 14.95 | 14.05 | 14.95 | |||||||||||
Leverage Ratio | 10.41 | 11.49 | 11.30 | 10.41 | 11.30 | |||||||||||
Equity to Assets | 11.19 | 12.26 | 12.15 | 11.19 | 12.15 | |||||||||||
ASSET QUALITY | ||||||||||||||||
Allowance as % of Non-Performing Loans | 71.92 | % | 145.49 | % | 214.09 | % | 71.92 | % | 214.09 | % | ||||||
Allowance as a % of Loans | 0.95 | 0.95 | 0.86 | 0.95 | 0.86 | |||||||||||
Net Charge-Offs as % of Average Loans | 0.34 | 0.21 | 0.11 | 0.27 | 0.11 | |||||||||||
Nonperforming Assets as % of Loans and ORE | 1.47 | 0.74 | 0.44 | 1.47 | 0.44 | |||||||||||
STOCK PERFORMANCE | ||||||||||||||||
High | $ | 34.00 | 36.40 | 35.98 | 36.40 | 37.97 | ||||||||||
Low | 24.60 | 27.69 | 30.14 | 24.60 | 29.51 | |||||||||||
Close | 28.22 | 31.20 | 35.30 | 28.22 | 35.30 | |||||||||||
Average Daily Trading Volume | 52,489 | 40,247 | 19,826 | 39,385 | 20,449 |
CAPITAL CITY BANK GROUP, INC. CONSOLIDATED STATEMENT OF INCOME Unaudited | ||||||||||||||||||||||||||||
2007 | 2006 | Twelve Months Ended December 31, | ||||||||||||||||||||||||||
(Dollars in thousands, except per share data) | Fourth Quarter | Third Quarter | Second Quarter | First Quarter | Fourth Quarter | 2007 | 2006 | |||||||||||||||||||||
INTEREST INCOME | ||||||||||||||||||||||||||||
Interest and Fees on Loans | $ | 37,730 | 38,692 | 39,092 | 39,053 | 40,096 | 154,567 | 156,666 | ||||||||||||||||||||
Investment Securities | 1,992 | 1,968 | 1,943 | 1,940 | 1,928 | 7,843 | 7,188 | |||||||||||||||||||||
Funds Sold | 1,064 | 639 | 689 | 521 | 576 | 2,913 | 2,039 | |||||||||||||||||||||
Total Interest Income | 40,786 | 41,299 | 41,724 | 41,514 | 42,600 | 165,323 | 165,893 | |||||||||||||||||||||
INTEREST EXPENSE | ||||||||||||||||||||||||||||
Deposits | 11,323 | 11,266 | 11,098 | 11,000 | 10,830 | 44,687 | 37,253 | |||||||||||||||||||||
Short-Term Borrowings | 639 | 734 | 737 | 761 | 722 | 2,871 | 3,075 | |||||||||||||||||||||
Subordinated Notes Payable | 936 | 936 | 932 | 926 | 936 | 3,730 | 3,725 | |||||||||||||||||||||
Other Long-Term Borrowings | 343 | 453 | 496 | 502 | 515 | 1,794 | 2,704 | |||||||||||||||||||||
Total Interest Expense | 13,241 | 13,389 | 13,263 | 13,189 | 13,003 | 53,082 | 46,757 | |||||||||||||||||||||
Net Interest Income | 27,545 | 27,910 | 28,461 | 28,325 | 29,597 | 112,241 | 119,136 | |||||||||||||||||||||
Provision for Loan Losses | 1,699 | 1,552 | 1,675 | 1,237 | 460 | 6,163 | 1,959 | |||||||||||||||||||||
Net Interest Income after Provision for Loan Losses | 25,846 | 26,358 | 26,786 | 27,088 | 29,137 | 106,078 | 117,177 | |||||||||||||||||||||
NONINTEREST INCOME | ||||||||||||||||||||||||||||
Service Charges on Deposit Accounts | 7,256 | 6,387 | 6,442 | 6,045 | 6,394 | 26,130 | 24,620 | |||||||||||||||||||||
Data Processing | 853 | 775 | 790 | 715 | 709 | 3,133 | 2,723 | |||||||||||||||||||||
Asset Management Fees | 1,100 | 1,200 | 1,175 | 1,225 | 1,180 | 4,700 | 4,600 | |||||||||||||||||||||
Retail Brokerage Fees | 619 | 625 | 804 | 462 | 586 | 2,510 | 2,091 | |||||||||||||||||||||
Gain on Sale of Investment Securities | 7 | - | - | 7 | - | 14 | (4 | ) | ||||||||||||||||||||
Mortgage Banking Revenues | 425 | 642 | 850 | 679 | 787 | 2,596 | 3,235 | |||||||||||||||||||||
Merchant Fees | 1,743 | 1,686 | 1,892 | 1,936 | 1,694 | 7,257 | 6,978 | |||||||||||||||||||||
Interchange Fees | 962 | 934 | 951 | 910 | 845 | 3,757 | 3,105 | |||||||||||||||||||||
ATM/Debit Card Fees | 705 | 685 | 661 | 641 | 658 | 2,692 | 2,519 | |||||||||||||||||||||
Other | 2,153 | 1,497 | 1,519 | 1,342 | 1,532 | 6,511 | 5,710 | |||||||||||||||||||||
Total Noninterest Income | 15,823 | 14,431 | 15,084 | 13,962 | 14,385 | 59,300 | 55,577 | |||||||||||||||||||||
NONINTEREST EXPENSE | ||||||||||||||||||||||||||||
Salaries and Associate Benefits | 14,472 | 15,096 | 14,992 | 15,719 | 14,943 | 60,279 | 60,855 | |||||||||||||||||||||
Occupancy, Net | 2,378 | 2,409 | 2,324 | 2,236 | 2,460 | 9,347 | 9,395 | |||||||||||||||||||||
Furniture and Equipment | 2,534 | 2,513 | 2,494 | 2,349 | 2,259 | 9,890 | 9,911 | |||||||||||||||||||||
Intangible Amortization | 1,458 | 1,459 | 1,458 | 1,459 | 1,484 | 5,834 | 6,085 | |||||||||||||||||||||
Other | 10,772 | 8,442 | 8,629 | 8,799 | 8,838 | 36,642 | 35,322 | |||||||||||||||||||||
Total Noninterest Expense | 31,614 | 29,919 | 29,897 | 30,562 | 29,984 | 121,992 | 121,568 | |||||||||||||||||||||
OPERATING PROFIT | 10,055 | 10,870 | 11,973 | 10,488 | 13,538 | 43,386 | 51,186 | |||||||||||||||||||||
Provision for Income Taxes | 2,391 | 3,699 | 4,082 | 3,531 | 4,688 | 13,703 | 17,921 | |||||||||||||||||||||
NET INCOME | $ | 7,664 | 7,171 | 7,891 | 6,957 | 8,850 | 29,683 | 33,265 | ||||||||||||||||||||
PER SHARE DATA | ||||||||||||||||||||||||||||
Basic Earnings | $ | 0.44 | 0.41 | 0.43 | 0.38 | 0.48 | 1.66 | 1.79 | ||||||||||||||||||||
Diluted Earnings | 0.44 | 0.41 | 0.43 | 0.38 | 0.48 | 1.66 | 1.79 | |||||||||||||||||||||
Cash Dividends | 0.185 | 0.175 | 0.175 | 0.175 | 0.175 | 0.710 | 0.663 | |||||||||||||||||||||
AVERAGE SHARES | ||||||||||||||||||||||||||||
Basic | 17,444 | 17,709 | 18,089 | 18,409 | 18,525 | 17,909 | 18,585 | |||||||||||||||||||||
Diluted | 17,445 | 17,719 | 18,089 | 18,420 | 18,569 | 17,912 | 18,610 |
CAPITAL CITY BANK GROUP, INC. CONSOLIDATED STATEMENT OF FINANCIAL CONDITION Unaudited | ||||||||||||||||||||
2007 | 2006 | |||||||||||||||||||
Fourth | Third | Second | First | Fourth | ||||||||||||||||
(Dollars in thousands, except per share data) | Quarter | Quarter | Quarter | Quarter | Quarter | |||||||||||||||
ASSETS | ||||||||||||||||||||
Cash and Due From Banks | $ | 93,437 | 91,378 | 95,573 | 92,233 | 98,769 | ||||||||||||||
Funds Sold and Interest Bearing Deposits | 166,260 | 19,599 | 77,297 | 93,832 | 78,795 | |||||||||||||||
Total Cash and Cash Equivalents | 259,697 | 110,977 | 172,870 | 186,065 | 177,564 | |||||||||||||||
Investment Securities, Available-for-Sale | 190,719 | 184,609 | 189,680 | 191,446 | 191,894 | |||||||||||||||
Loans, Net of Unearned Interest | ||||||||||||||||||||
Commercial, Financial, & Agricultural | 208,864 | 205,628 | 203,555 | 205,048 | 229,327 | |||||||||||||||
Real Estate - Construction | 142,248 | 145,343 | 159,751 | 180,549 | 179,072 | |||||||||||||||
Real Estate - Commercial | 634,920 | 631,418 | 640,172 | 643,272 | 643,885 | |||||||||||||||
Real Estate - Residential | 481,150 | 480,488 | 493,783 | 509,040 | 524,301 | |||||||||||||||
Real Estate - Home Equity | 192,428 | 183,620 | 175,781 | 172,283 | 173,597 | |||||||||||||||
Consumer | 243,415 | 246,137 | 240,110 | 235,175 | 234,596 | |||||||||||||||
Credit Card | - | - | - | - | - | |||||||||||||||
Other Loans | 7,222 | 8,739 | 14,715 | 14,899 | 11,837 | |||||||||||||||
Overdrafts | 5,603 | 2,515 | 2,844 | 5,575 | 3,106 | |||||||||||||||
Total Loans, Net of Unearned Interest | 1,915,850 | 1,903,888 | 1,930,711 | 1,965,841 | 1,999,721 | |||||||||||||||
Allowance for Loan Losses | (18,066 | ) | (18,001 | ) | (17,469 | ) | (17,108 | ) | (17,217 | ) | ||||||||||
Loans, Net | 1,897,784 | 1,885,887 | 1,913,242 | 1,948,733 | 1,982,504 | |||||||||||||||
Premises and Equipment, Net | 98,612 | 95,816 | 92,656 | 88,812 | 86,538 | |||||||||||||||
Intangible Assets | 98,568 | 100,026 | 101,485 | 102,944 | 104,402 | |||||||||||||||
Other Assets | 70,947 | 62,611 | 60,815 | 60,117 | 55,008 | |||||||||||||||
Total Other Assets | 268,127 | 258,453 | 254,956 | 251,873 | 245,948 | |||||||||||||||
Total Assets | $ | 2,616,327 | 2,439,926 | 2,530,748 | 2,578,117 | 2,597,910 | ||||||||||||||
LIABILITIES | ||||||||||||||||||||
Deposits: | ||||||||||||||||||||
Noninterest Bearing Deposits | $ | 432,659 | 419,242 | 456,986 | 467,875 | 490,014 | ||||||||||||||
NOW Accounts | 744,093 | 530,619 | 559,050 | 575,740 | 599,433 | |||||||||||||||
Money Market Accounts | 386,619 | 399,578 | 401,415 | 396,150 | 384,568 | |||||||||||||||
Regular Savings Accounts | 111,600 | 115,955 | 119,585 | 124,970 | 125,500 | |||||||||||||||
Certificates of Deposit | 467,373 | 472,019 | 472,554 | 477,327 | 482,139 | |||||||||||||||
Total Deposits | 2,142,344 | 1,937,413 | 2,009,590 | 2,042,062 | 2,081,654 | |||||||||||||||
Short-Term Borrowings | 53,131 | 63,817 | 74,307 | 77,936 | 65,023 | |||||||||||||||
Subordinated Notes Payable | 62,887 | 62,887 | 62,887 | 62,887 | 62,887 | |||||||||||||||
Other Long-Term Borrowings | 26,731 | 29,725 | 41,276 | 42,879 | 43,083 | |||||||||||||||
Other Liabilities | 38,559 | 47,031 | 41,251 | 41,841 | 29,493 | |||||||||||||||
Total Liabilities | 2,323,652 | 2,140,873 | 2,229,311 | 2,267,605 | 2,282,140 | |||||||||||||||
SHAREOWNERS' EQUITY | ||||||||||||||||||||
Common Stock | 172 | 176 | 179 | 183 | 185 | |||||||||||||||
Additional Paid-In Capital | 38,243 | 50,789 | 58,001 | 71,366 | 80,654 | |||||||||||||||
Retained Earnings | 260,325 | 255,876 | 251,838 | 246,959 | 243,242 | |||||||||||||||
Accumulated Other Comprehensive Loss, Net of Tax | (6,065 | ) | (7,788 | ) | (8,581 | ) | (7,996 | ) | (8,311 | ) | ||||||||||
Total Shareowners' Equity | 292,675 | 299,053 | 301,437 | 310,512 | 315,770 | |||||||||||||||
Total Liabilities and Shareowners' Equity | $ | 2,616,327 | 2,439,926 | 2,530,748 | 2,578,117 | 2,597,910 | ||||||||||||||
OTHER BALANCE SHEET DATA | ||||||||||||||||||||
Earning Assets | $ | 2,272,829 | 2,108,096 | 2,197,688 | 2,251,119 | 2,270,410 | ||||||||||||||
Intangible Assets | ||||||||||||||||||||
Goodwill | 84,811 | 84,811 | 84,811 | 84,811 | 84,811 | |||||||||||||||
Deposit Base | 12,578 | 13,988 | 15,399 | 16,810 | 18,221 | |||||||||||||||
Other | 1,179 | 1,227 | 1,275 | 1,323 | 1,370 | |||||||||||||||
Interest Bearing Liabilities | 1,852,434 | 1,674,600 | 1,731,074 | 1,757,889 | 1,762,633 | |||||||||||||||
Book Value Per Diluted Share | $ | 17.03 | 16.95 | 16.87 | 16.97 | 17.01 | ||||||||||||||
Tangible Book Value Per Diluted Share | 11.30 | 11.28 | 11.19 | 11.34 | 11.39 | |||||||||||||||
Actual Basic Shares Outstanding | 17,183 | 17,628 | 17,869 | 18,287 | 18,518 | |||||||||||||||
Actual Diluted Shares Outstanding | 17,184 | 17,639 | 17,869 | 18,297 | 18,562 |
CAPITAL CITY BANK GROUP, INC. ALLOWANCE FOR LOAN LOSSES AND NONPERFORMING ASSETS Unaudited | ||||||||||||||||||||
2007 | 2006 | |||||||||||||||||||
Fourth | Third | Second | First | Fourth | ||||||||||||||||
(Dollars in thousands) | Quarter | Quarter | Quarter | Quarter | Quarter | |||||||||||||||
ALLOWANCE FOR LOAN LOSSES | ||||||||||||||||||||
Balance at Beginning of Period | $ | 18,001 | 17,469 | 17,108 | 17,217 | 17,311 | ||||||||||||||
Provision for Loan Losses | 1,699 | 1,552 | 1,675 | 1,237 | 460 | |||||||||||||||
Net Charge-Offs | 1,634 | 1,020 | 1,314 | 1,346 | 554 | |||||||||||||||
Balance at End of Period | $ | 18,066 | 18,001 | 17,469 | 17,108 | 17,217 | ||||||||||||||
As a % of Loans | 0.95 | 0.95 | 0.91 | 0.87 | 0.86 | |||||||||||||||
As a % of Nonperforming Loans | 71.92 | 145.49 | 193.69 | 207.67 | 214.09 | |||||||||||||||
As a % of Nonperforming Assets | 64.15 | 128.05 | 172.60 | 181.23 | 197.19 | |||||||||||||||
CHARGE-OFFS | ||||||||||||||||||||
Commercial, Financial and Agricultural | $ | 370 | 279 | 253 | 560 | 81 | ||||||||||||||
Real Estate - Construction | 58 | - | - | 108 | - | |||||||||||||||
Real Estate - Commercial | 133 | 245 | 5 | 326 | 54 | |||||||||||||||
Real Estate - Residential | 209 | 161 | 992 | 67 | 154 | |||||||||||||||
Consumer | 1,302 | 854 | 534 | 761 | 787 | |||||||||||||||
Total Charge-Offs | $ | 2,072 | 1,539 | 1,784 | 1,822 | 1,076 | ||||||||||||||
RECOVERIES | ||||||||||||||||||||
Commercial, Financial and Agricultural | $ | 47 | 44 | 47 | 36 | 77 | ||||||||||||||
Real Estate - Construction | - | - | - | - | - | |||||||||||||||
Real Estate - Commercial | 2 | 2 | 5 | 5 | 9 | |||||||||||||||
Real Estate - Residential | 5 | 2 | 26 | 3 | 1 | |||||||||||||||
Consumer | 384 | 471 | 392 | 432 | 435 | |||||||||||||||
Total Recoveries | $ | 438 | 519 | 470 | 476 | 522 | ||||||||||||||
NET CHARGE-OFFS | $ | 1,634 | 1,020 | 1,314 | 1,346 | 554 | ||||||||||||||
Net Charge-Offs as a % of Average Loans (1) | 0.34 | 0.21 | 0.27 | 0.28 | 0.11 | |||||||||||||||
RISK ELEMENT ASSETS | ||||||||||||||||||||
Nonaccruing Loans | $ | 25,120 | 12,373 | 9,019 | 8,238 | 8,042 | ||||||||||||||
Restructured | - | - | - | - | - | |||||||||||||||
Total Nonperforming Loans | 25,120 | 12,373 | 9,019 | 8,238 | 8,042 | |||||||||||||||
Other Real Estate | 3,043 | 1,685 | 1,102 | 1,202 | 689 | |||||||||||||||
Total Nonperforming Assets | $ | 28,163 | 14,058 | 10,121 | 9,440 | 8,731 | ||||||||||||||
Past Due Loans 90 Days or More | $ | 416 | 874 | 332 | 860 | 135 | ||||||||||||||
Nonperforming Loans as a % of Loans | 1.31 | 0.65 | 0.47 | 0.42 | 0.40 | |||||||||||||||
Nonperforming Assets as a % of | ||||||||||||||||||||
Loans and Other Real Estate | 1.47 | 0.74 | 0.52 | 0.48 | 0.44 | |||||||||||||||
Nonperforming Assets as a % of Capital (2) | 9.06 | 4.43 | 3.17 | 2.88 | 2.62 | |||||||||||||||
(1) Annualized | ||||||||||||||||||||
(2) Capital includes allowance for loan losses. |
Unaudited | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fourth Quarter 2007 | Third Quarter 2007 | Second Quarter 2007 | First Quarter 2007 | Fourth Quarter 2006 | Twelve Months Ended December 2007 | Twelve Months Ended December 2006 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(Dollars in thousands) | Average Balance | Interest | Average Rate | Average Balance | Interest | Averate 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 | $ | 1,908,069 | $ | 37,969 | 7.89 | % | 1,907,235 | 38,901 | 8.09 | 1,944,969 | 39,300 | 8.10 | $ | 1,980,224 | $ | 39,264 | 8.04 | % | 2,003,719 | 40,296 | 7.98 | $ | 1,934,850 | $ | 155,434 | 8.03 | % | 2,029,397 | 157,227 | 7.75 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Investment Securities | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Taxable Investment Securities | 99,055 | 1,226 | 4.93 | 102,618 | 1,224 | 4.75 | 105,425 | 1,236 | 4.68 | 108,377 | 1,263 | 4.67 | 108,041 | 1,263 | 4.66 | 103,840 | 4,949 | 4.76 | 112,392 | 4,851 | 4.31 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Tax-Exempt Investment Securities | 87,358 | 1,178 | 5.39 | 85,446 | 1,142 | 5.35 | 83,907 | 1,088 | 5.19 | 82,627 | 1,039 | 5.03 | 82,568 | 1,020 | 4.94 | 84,849 | 4,447 | 5.24 | 74,634 | 3,588 | 4.81 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total Investment Securities | 186,413 | 2,404 | 5.15 | 188,064 | 2,366 | 5.02 | 189,332 | 2,324 | 4.91 | 191,004 | 2,302 | 4.82 | 190,609 | 2,283 | 4.78 | 188,689 | 9,396 | 4.97 | 187,026 | 8,439 | 4.51 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Funds Sold | 96,748 | 1,064 | 4.31 | 49,438 | 639 | 5.06 | 52,935 | 689 | 5.15 | 40,332 | 521 | 5.17 | 43,738 | 576 | 5.15 | 59,989 | 2,913 | 4.79 | 41,854 | 2,039 | 4.81 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total Earning Assets | 2,191,230 | $ | 41,437 | 7.50 | % | 2,144,737 | 41,906 | 7.75 | 2,187,236 | 42,313 | 7.76 | 2,211,560 | $ | 42,087 | 7.71 | % | 2,238,066 | 43,155 | 7.65 | 2,183,528 | $ | 167,743 | 7.68 | % | 2,258,277 | 167,705 | 7.42 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Cash and Due From Banks | 85,598 | 84,477 | 88,075 | 88,679 | 94,449 | 86,692 | 100,237 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Allowance For Loan Losses | (18,127 | ) | (17,664 | ) | (17,263 | ) | (17,073 | ) | (17,503 | ) | (17,535 | ) | (17,486 | ) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other Assets | 260,981 | 256,153 | 253,204 | 247,624 | 242,345 | 254,532 | 240,050 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total Assets | $ | 2,519,682 | 2,467,703 | 2,511,252 | $ | 2,530,790 | $ | 2,557,357 | $ | 2,507,217 | 2,581,078 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
LIABILITIES: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Interest Bearing Deposits | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
NOW Accounts | $ | 608,347 | $ | 2,980 | 1.94 | % | 525,795 | 2,531 | 1.91 | 541,525 | 2,611 | 1.93 | $ | 552,303 | $ | 2,626 | 1.93 | % | 542,751 | 2,522 | 1.84 | $ | 557,060 | $ | 10,748 | 1.93 | % | 518,671 | 7,658 | 1.48 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Money Market Accounts | 404,406 | 3,217 | 3.16 | 403,957 | 3,565 | 3.50 | 393,403 | 3,458 | 3.53 | 386,736 | 3,427 | 3.59 | 391,346 | 3,488 | 3.54 | 397,193 | 13,667 | 3.44 | 370,257 | 11,687 | 3.16 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Savings Accounts | 113,527 | 57 | 0.20 | 117,451 | 70 | 0.24 | 122,560 | 74 | 0.24 | 125,419 | 78 | 0.25 | 128,027 | 76 | 0.24 | 119,700 | 279 | 0.23 | 134,033 | 278 | 0.21 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Time Deposits | 471,454 | 5,069 | 4.27 | 471,868 | 5,100 | 4.29 | 474,761 | 4,955 | 4.19 | 480,964 | 4,869 | 4.11 | 484,807 | 4,744 | 3.88 | 474,728 | 19,993 | 4.21 | 507,283 | 17,630 | 3.48 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total Interest Bearing Deposits | 1,597,734 | 11,323 | 2.81 | 1,519,071 | 11,266 | 2.94 | 1,532,249 | 11,098 | 2.91 | 1,545,422 | 11,000 | 2.89 | 1,546,931 | 10,830 | 2.78 | 1,548,681 | 44,687 | 2.89 | 1,530,244 | 37,253 | 2.43 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Short-Term Borrowings | 64,842 | 639 | 3.89 | 65,130 | 734 | 4.45 | 66,764 | 737 | 4.41 | 68,911 | 761 | 4.46 | 65,385 | 722 | 4.36 | 66,397 | 2,871 | 4.31 | 78,700 | 3,075 | 3.89 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Subordinated Notes Payable | 62,887 | 936 | 5.91 | 62,887 | 936 | 5.91 | 62,887 | 932 | 5.94 | 62,887 | 926 | 5.97 | 62,887 | 936 | 5.91 | 62,887 | 3,730 | 5.93 | 62,887 | 3,724 | 5.92 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other Long-Term Borrowings | 28,215 | 343 | 4.83 | 38,269 | 453 | 4.70 | 42,284 | 496 | 4.71 | 43,137 | 502 | 4.72 | 43,453 | 515 | 4.71 | 37,936 | 1,794 | 4.73 | 57,260 | 2,704 | 4.72 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total Interest Bearing Liabilities | 1,753,678 | $ | 13,241 | 3.00 | % | 1,685,357 | 13,389 | 3.15 | 1,704,184 | 13,263 | 3.12 | 1,720,357 | $ | 13,189 | 3.11 | % | 1,718,656 | 13,003 | 3.00 | 1,715,901 | $ | 53,082 | 3.09 | % | 1,729,091 | 46,756 | 2.70 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Noninterest Bearing Deposits | 419,002 | 435,089 | 455,169 | 458,304 | 481,522 | 441,765 | 504,687 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other Liabilities | 47,660 | 45,721 | 42,547 | 35,645 | 33,276 | 42,934 | 29,964 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total Liabilities | 2,220,340 | 2,166,167 | 2,201,900 | 2,214,306 | 2,233,454 | 2,200,600 | 2,263,742 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
SHAREOWNERS' EQUITY: | $ | 299,342 | 301,536 | 309,352 | $ | 316,484 | 323,903 | $ | 306,617 | 317,336 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total Liabilities and Shareowners' Equity | $ | 2,519,682 | 2,467,703 | 2,511,252 | $ | 2,530,790 | 2,557,357 | $ | 2,507,217 | 2,581,078 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Interest Rate Spread | $ | 28,196 | 4.50 | % | 28,517 | 4.60 | 29,050 | 4.64 | $ | 28,898 | 4.60 | % | 30,152 | 4.65 | $ | 114,661 | 4.59 | % | 120,949 | 4.72 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Interest Income and Rate Earned (2) | $ | 41,437 | 7.50 | 41,906 | 7.75 | 42,313 | 7.76 | $ | 42,087 | 7.71 | 43,155 | 7.65 | $ | 167,743 | 7.68 | 167,705 | 7.42 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Interest Expense and Rate Paid (2) | 13,241 | 2.40 | 13,389 | 2.48 | 13,263 | 2.43 | 13,189 | 2.42 | 13,003 | 2.30 | 53,082 | 2.43 | 46,756 | 2.07 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net Interest Margin | $ | 28,196 | 5.10 | % | 28,517 | 5.27 | 29,050 | 5.33 | $ | 28,898 | 5.29 | % | 30,152 | 5.35 | $ | 114,661 | 5.25 | % | 120,949 | 5.35 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(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 assests.