Exhibit 99.1
Capital City Bank Group, Inc.
Reports Second Quarter 2008 Results
TALLAHASSEE, Fla. (July 22, 2008) – Capital City Bank Group, Inc. (NASDAQ: CCBG) today reported net income for the second quarter of 2008 totaling $4.8 million ($0.28 per diluted share) compared to $7.3 million ($0.42 per diluted share) in the first quarter of 2008 and $7.9 million ($0.43 per diluted share) for the second quarter of 2007. Earnings for the second quarter of 2008 include a loan loss provision of $5.4 million ($.20 per diluted share) versus $4.1 million ($.15 per diluted share) in the first quarter of 2008 and $1.7 million ($.06 per diluted share) in the second quarter of 2007.
Earnings for the first half of 2008 totaled $12.1 million ($0.70 per diluted share) compared to $14.8 million ($0.81 per diluted share) for the first half of 2007. Year-to-date earnings include a loan loss provision of $9.6 million ($0.34 per diluted share). Earnings also include a $2.4 million pre-tax gain from the redemption of Visa, Inc. shares related to its initial public offering, the reversal of $1.1 million (pre-tax) in Visa related litigation reserves, the reversal of $577,000 (pre-tax) in accrued expense for our 2011 Incentive Plan, and the reversal of a $425,000 tax reserve related to the resolution of a tax contingency, all four of which were recorded in the prior quarter.
“Overall, our underlying business is fundamentally sound -- after adjusting for the gain on redemption of Visa shares, operating revenues grew quarter over quarter and our expenses are in check. In Florida, we are managing through a challenging credit cycle and we have responded appropriately by increasing our provision and reserve in both the first and second quarters of this year,” said William G. Smith, Jr., chairman, president & CEO. “Because our housing markets did not experience the rapid price appreciation as evidenced in other areas of the state, we believe credit-related problems across our markets may be less severe over an extended economic slowdown. Additionally, our portfolios are well-diversified by loan type and we think our higher-risk loan relationships tend to be smaller in size than most of our Florida-based peers due to our relatively low in-house lending limit and overall lending authorities.”
“We are taking a prudent approach in monitoring collateral values for our problem real estate loans, allocating more resources to the review of updated valuations as market conditions change and, where appropriate, recognizing losses prior to final resolution of the problem asset.
“Our capital position is quite strong. Our total shareowners’ equity currently stands at $297 million, or 11.2% of total assets and our total risk-based capital ratio equals 14.35%. These measures are well in excess of regulatory minimums for an institution to be considered well-capitalized and are after the repurchase of $45.6 million of our common stock over the last eighteen months. We believe the strength of our balance sheet will allow us to participate in opportunities that naturally arise during periods of economic stress and disruption,” said Smith.
The Return on Average Assets was .73% and the Return on Average Equity was 6.43% for the second quarter of 2008. These metrics were 1.11% and 9.87% for the first quarter of 2008 and 1.26% and 10.23% for the second quarter of 2007, respectively.
For the first half of 2008, the Return on Average Assets was .92% and the Return on Average Equity was 8.14% compared to 1.19% and 9.57%, respectively, for the first half of 2007.
Discussion of Financial Condition
Average earning assets were $2.304 billion for the second quarter, an increase of $2.5 million, or .11% from the first quarter of 2008, and $112.7 million, or 5.2% from the fourth quarter of 2007. The increase over the linked quarter is primarily attributable to a $2.6 million increase in investment securities. Compared to the fourth quarter of 2007, the increase primarily reflects a $110.2 million increase in short-term investments which was driven primarily by an increase in our client deposit balances (see discussion below). Average loans were down slightly from both the prior quarter and fourth quarter of 2007 by $.8 million and $.7 million, respectively, as production essentially matched pay-downs and pay-offs. Given our risk management practices, the lack of loan growth in this current economic environment is not unexpected.
Nonperforming assets of $47.8 million increased from the first quarter by $6.7 million and from the fourth quarter of 2007 by $19.6 million. For the same periods, nonaccrual loans totaling $41.7 million increased $6.4 million and $16.6 million, respectively. The increase from the first quarter primarily reflects the migration of smaller balance residential real estate loans to builders and investors to nonaccrual status. Restructured loans totaled $1.7 million at the end of the quarter. Other real estate owned totaled $4.3 million at the end of the second quarter compared to $3.8 million at the end of the first quarter and $3.0 million at year-end 2007. Nonperforming assets represented 2.49% of loans and other real estate at the end of the second quarter compared to 2.14% and 1.47% at the end of the prior quarter and year-end 2007, respectively.
Average total deposits were $2.141 billion for the second quarter, a decrease of $8.3 million, or 0.39%, from the first quarter and an increase of $123.8 million, or 6.1%, over the fourth quarter of 2007. Compared to the first quarter, non-maturity deposits increased primarily as a result of growth in noninterest bearing and negotiated rate NOW accounts, but this increase was more than offset by a decline in the money market accounts and certificates of deposit. Strong growth in public funds deposits is primarily attributable to a migration of deposits from the Florida State Board of Administration’s Local Government Investment Pool, which began in the fourth quarter and has continued through the second quarter. Declines in money market accounts and certificates of deposit reflect management’s strategy not to compete with higher rate paying competitors. Compared to the fourth quarter of 2007, a majority of the increase in deposits has come in the NOW account category reflecting the aforementioned trend in negotiated rate NOW accounts.
The Company had approximately $195.5 million in average net overnight funds sold for the second quarter of 2008 as compared to $186.8 million in the first quarter of 2008 and $84.1 million in the fourth quarter of 2007. The influx of public deposits generated in the first half of 2008 was the primary factor driving the growth of overnight funds for both periods.
Discussion of Operating Results
Tax equivalent net interest income for the second quarter of 2008 was $28.1 million compared to $27.1 million for the first quarter and $29.0 million for the second quarter of 2007. For the first six months of 2008, tax equivalent net interest income totaled $55.2 million compared to $57.9 million for the comparable period in 2007.
The increase in the net interest income on a linked quarter basis reflects lower interest costs as management has responded aggressively to the Federal Reserve’s 225 basis point rate reduction during 2008. The lower interest cost was partially offset by declines in earning asset yields and a slight increase in foregone interest on nonaccrual loans. During this same period, the net interest margin expanded by 17 basis points to 4.90%, attributable to lower deposit rates.
The decline in net interest income for the three and six months ended June 30, 2008, as compared to the same periods of 2007 was primarily the result of a higher level of foregone interest associated with the increased level of nonperforming assets and an unfavorable shift in the mix of earning assets as the loan balances declined throughout the first nine months of 2007. These factors, coupled with the influx of higher cost municipal deposits in 2008, led to compression in our net interest margin of 43 and 50 basis points, respectively. We continue to believe we have been successful in neutralizing the impact of reductions in the Federal Reserve’s target rate over the last three quarters.
Average negotiated deposits, which include municipal deposits, have grown from $287 million in the second quarter of 2007 to $538 million in the current quarter. Although this growth in deposits has had a positive impact on net interest income, it has had an adverse impact on our margin due to the relatively thin spreads on the municipal deposits. See “Discussion of Financial Condition” for a more detailed analysis of nonperforming assets and deposit growth.
The provision for loan losses for the current quarter was $5.4 million compared to $4.1 million in the first quarter of 2008 and $1.7 million for the second quarter of 2007. The provision for the first six months of 2008 totaled $9.6 million compared to $2.9 million for the same period in 2007. The increase in the provision for the current quarter and for the first six months of the year generally reflects the current economic slowdown and the impact of the stressed housing and real estate markets. Compared to the prior quarter, the increase in the provision reflects a higher level of reserves allocated to our commercial loan and residential real estate loan portfolios. The increase in the provision for the first half of 2008 compared to the same period in 2007 reflects the aforementioned trends as well as stress on our consumer loan portfolios, primarily indirect auto lending. For the quarter, net charge-offs totaled $3.2 million, or .67%, of average loans compared to $1.9 million, or .41%, in the first quarter of 2008 and $1.3 million, or .27%, in the second quarter of 2007. The increase in net charge offs for the current quarter primarily reflects a higher level of consumer (indirect auto), residential real estate, and commercial real estate loan charge-offs. Management performs a detailed review and valuation assessment of impaired loans on a quarterly basis and, in accordance with its current charge-off procedures, writes existing nonaccrual loans down to fair value when principal is deemed uncollectible. Increased resources have been allocated to the aforementioned process to review impaired loans migrating through the foreclosure process and record write-downs on these loans as market conditions change. Due to elevated case loads, it is taking longer for cases to move through the court system and, therefore, where appropriate, we are recognizing losses prior to final resolution of the problem asset. At quarter-end, the allowance for loan losses was 1.18% of outstanding loans (net of overdrafts) and provided coverage of 52% of nonperforming loans.
Noninterest income for the second quarter decreased $2.1 million, or 11.7%, from the first quarter of 2008 attributable to a pre-tax gain of $2.4 million realized in the first quarter of 2008 from the redemption of Visa, Inc. shares. Compared to the second quarter of 2007, noninterest income increased $634,000, or 4.0%, due to increases in deposit fees and retail brokerage fees. For the first six months of 2008, noninterest income grew $4.5 million, or 15.4%, from the comparable period in 2007 due to the aforementioned gain on redemption of Visa, Inc. shares, and strong gains in deposit fees and bank card fees.
Noninterest expense for the second quarter increased $958,000, or 3.2%, from the first quarter of 2008 attributable to a one-time entry of $1.1 million realized in the first quarter of 2008 to reverse a portion of our Visa, Inc. litigation accrual. In addition, we reversed $577,000 in accrued expense in the first quarter of 2008 related to the termination of our 2011 Incentive Plan. Compared to the second quarter of 2007, noninterest expense increased $859,000, or 2.9%, due primarily to an increase in compensation and occupancy costs. The increase in compensation is attributable to higher associate base salaries reflective of annual merit/market based raises and the opening of three new banking offices in 2007. The increase in occupancy is primarily due to higher depreciation expense also attributable to the aforementioned new banking offices and the implementation of a new telephone system in early 2008. For the first six months of 2008, noninterest expense grew $95,000, or .16%, from the comparable period in 2007 primarily due to the aforementioned higher compensation and occupancy expense, with the one-time reversal of our Visa, Inc. litigation accrual partially offsetting those increases. Higher expense for commission fees related to processing cost for our accounts receivable financing product also increased over this period. Management continues to work on expense reduction opportunities and improvement in cost controls as a core strategic objective.
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 $2.7 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 69 banking offices, one mortgage lending office, and 82 ATMs in Florida, Georgia and Alabama. Since 2005, the Company has been named as a Dividend Achiever by Mergent, Inc., a leading provider of information on publicly traded companies. To be named a Dividend Achiever, a public company must have increased its regular cash dividends for at least 10 consecutive years. For more information about Capital City Bank Group, Inc., visit www.ccbg.com.
FORWARD-LOOKING STATEMENTS
Forward-looking statements in this Press Release are based on current plans and expectations that are subject to uncertainties and risks, which could cause the Company’s future results to differ materially. The following factors, among others, could cause the Company’s actual results to differ: the frequency and magnitude of foreclosure of the Company’s loans; the effects of the Company’s lack of a diversified loan portfolio, including the risks of geographic and industry concentrations; the accuracy of the Company’s financial statement estimates and assumptions, including the estimate for the Company’s loan loss provision; the Company’s ability to integrate acquisitions; the strength of the U.S. economy and the local economies where the Company conducts 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; the effects of security breaches and computer viruses that may affect the Company’s computer systems; changes in consumer spending and savings habits; the Company’s growth and profitability; changes in accounting; and the Company’s ability to manage the risks involved in the foregoing. Additional factors can be found in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2007, and the Company’s other filings with the SEC, which are available at the SEC’s internet site (http://www.sec.gov). Forward-looking statements in this Press Release speak only as of the date of the Press Release, and the Company assumes no obligation to update forward-looking statements or the reasons why actual results could differ.
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| EARNINGS HIGHLIGHTS | | | | | | | | | | | | | | |
| | Three Months Ended | | | Six Months Ended | |
| (Dollars in thousands, except per share data) | Jun 30, 2008 | | | Mar 31, 2008 | | | Jun 30, 2007 | | | Jun 30, 2008 | | | Jun 30, 2007 | |
| EARNINGS | | | | | | | | | | | | | | |
| Net Income | $ | 4,810 | | | $ | 7,280 | | | $ | 7,891 | | | $ | 12,090 | | | $ | 14,848 | |
| Diluted Earnings Per Common Share | $ | 0.28 | | | $ | 0.42 | | | $ | 0.43 | | | $ | 0.70 | | | $ | 0.81 | |
| PERFORMANCE | | | | | | | | | | | | | | | | | | | |
| Return on Average Equity | | 6.43 | % | | | 9.87 | % | | | 10.23 | % | | | 8.14 | % | | | 9.57 | % |
| Return on Average Assets | | 0.73 | % | | | 1.11 | % | | | 1.26 | % | | | 0.92 | % | | | 1.19 | % |
| Net Interest Margin | | 4.90 | % | | | 4.73 | % | | | 5.33 | % | | | 4.81 | % | | | 5.31 | % |
| Noninterest Income as % of Operating Revenue | | 36.39 | % | | | 40.22 | % | | | 34.64 | % | | | 38.33 | % | | | 33.84 | % |
| Efficiency Ratio | | 66.89 | % | | | 63.15 | % | | | 64.44 | % | | | 65.00 | % | | | 66.15 | % |
| CAPITAL ADEQUACY | | | | | | | | | | | | | | | | | | | |
| Tier 1 Capital Ratio | | 13.15 | % | | | 12.94 | % | | | 13.67 | % | | | 13.15 | % | | | 13.67 | % |
| Total Capital Ratio | | 14.35 | % | | | 14.01 | % | | | 14.66 | % | | | 14.35 | % | | | 14.66 | % |
| Leverage Ratio | | 10.54 | % | | | 10.32 | % | | | 11.14 | % | | | 10.54 | % | | | 11.14 | % |
| Equity to Assets | | 11.19 | % | | | 11.06 | % | | | 11.91 | % | | | 11.19 | % | | | 11.91 | % |
| ASSET QUALITY | | | | | | | | | | | | | | | | | | | |
| Allowance as % of Non-Performing Loans | | 51.80 | % | | | 54.32 | % | | | 193.69 | % | | | 51.80 | % | | | 193.69 | % |
| Allowance as a % of Loans | | 1.18 | % | | | 1.06 | % | | | 0.91 | % | | | 1.18 | % | | | 0.90 | % |
| Net Charge-Offs as % of Average Loans | | 0.67 | % | | | 0.41 | % | | | 0.27 | % | | | 0.54 | % | | | 0.27 | % |
| Nonperforming Assets as % of Loans and ORE | | 2.49 | % | | | 2.14 | % | | | 0.52 | % | | | 2.49 | % | | | 0.52 | % |
| STOCK PERFORMANCE | | | | | | | | | | | | | | | | | | | |
| High | $ | 30.19 | | | $ | 29.99 | | | $ | 33.69 | | | $ | 30.19 | | | $ | 35.91 | |
| Low | $ | 21.76 | | | $ | 24.76 | | | $ | 29.12 | | | $ | 21.76 | | | $ | 29.12 | |
| Close | $ | 21.76 | | | $ | 29.00 | | | $ | 31.34 | | | $ | 21.76 | | | $ | 31.34 | |
| Average Daily Trading Volume | | 36,196 | | | | 31,827 | | | | 40,051 | | | | 34,064 | | | | 32,338 | |
| CAPITAL CITY BANK GROUP, INC. | | | | | | | | | | | | | | | | | | | | | |
| CONSOLIDATED STATEMENT OF INCOME | | | | | | | | | | | | | | | | | | | |
| Unaudited | | | | | | | | | | | | | | | | | | | | | |
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| | | | | | | | | | | | | | | | | | Six Months Ended | |
| | | | | | | | | | | | | | | | | | June 30 | |
| (Dollars in thousands, except per share data) | | 2008 Second Quarter | | | 2008 First Quarter | | | 2007 Fourth Quarter | | | 2007 Third Quarter | | | 2007 Second Quarter | | | 2008 | | | 2007 | |
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| INTEREST INCOME | | | | | | | | | | | | | | | | | | | | | |
| Interest and Fees on Loans | | $ | 33,422 | | | $ | 35,255 | | | $ | 37,730 | | | $ | 38,692 | | | $ | 39,092 | | | $ | 68,677 | | | $ | 78,145 | |
| Investment Securities | | | 1,810 | | | | 1,893 | | | | 1,992 | | | | 1,968 | | | | 1,943 | | | | 3,703 | | | | 3,883 | |
| Funds Sold | | | 1,028 | | | | 1,575 | | | | 1,064 | | | | 639 | | | | 689 | | | | 2,603 | | | | 1,210 | |
| Total Interest Income | | | 36,260 | | | | 38,723 | | | | 40,786 | | | | 41,299 | | | | 41,724 | | | | 74,983 | | | | 83,238 | |
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| INTEREST EXPENSE | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Deposits | | | 7,162 | | | | 10,481 | | | | 11,323 | | | | 11,266 | | | | 11,098 | | | | 17,643 | | | | 22,098 | |
| Short-Term Borrowings | | | 296 | | | | 521 | | | | 639 | | | | 734 | | | | 737 | | | | 817 | | | | 1,498 | |
| Subordinated Notes Payable | | | 931 | | | | 931 | | | | 936 | | | | 936 | | | | 932 | | | | 1,862 | | | | 1,858 | |
| Other Long-Term Borrowings | | | 396 | | | | 331 | | | | 343 | | | | 453 | | | | 496 | | | | 727 | | | | 998 | |
| Total Interest Expense | | | 8,785 | | | | 12,264 | | | | 13,241 | | | | 13,389 | | | | 13,263 | | | | 21,049 | | | | 26,452 | |
| Net Interest Income | | | 27,475 | | | | 26,459 | | | | 27,545 | | | | 27,910 | | | | 28,461 | | | | 53,934 | | | | 56,786 | |
| Provision for Loan Losses | | | 5,432 | | | | 4,142 | | | | 1,699 | | | | 1,552 | | | | 1,675 | | | | 9,574 | | | | 2,912 | |
| Net Interest Income after Provision for Loan Losses | | | 22,043 | | | | 22,317 | | | | 25,846 | | | | 26,358 | | | | 26,786 | | | | 44,360 | | | | 53,874 | |
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| NONINTEREST INCOME | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Service Charges on Deposit Accounts | | | 7,060 | | | | 6,765 | | | | 7,256 | | | | 6,387 | | | | 6,442 | | | | 13,825 | | | | 12,487 | |
| Data Processing | | | 812 | | | | 813 | | | | 853 | | | | 775 | | | | 790 | | | | 1,625 | | | | 1,505 | |
| Asset Management Fees | | | 1,125 | | | | 1,150 | | | | 1,100 | | | | 1,200 | | | | 1,175 | | | | 2,275 | | | | 2,400 | |
| Retail Brokerage Fees | | | 735 | | | | 469 | | | | 619 | | | | 625 | | | | 804 | | | | 1,204 | | | | 1,266 | |
| Gain on Sale of Investment Securities | | | 30 | | | | 65 | | | | 7 | | | | - | | | | - | | | | 95 | | | | 7 | |
| Mortgage Banking Revenues | | | 506 | | | | 494 | | | | 425 | | | | 642 | | | | 850 | | | | 1,000 | | | | 1,529 | |
| Merchant Fees | | | 2,074 | | | | 2,208 | | | | 1,743 | | | | 1,686 | | | | 1,892 | | | | 4,282 | | | | 3,828 | |
| Interchange Fees | | | 1,076 | | | | 1,009 | | | | 962 | | | | 934 | | | | 951 | | | | 2,085 | | | | 1,861 | |
| ATM/Debit Card Fees | | | 758 | | | | 744 | | | | 705 | | | | 685 | | | | 661 | | | | 1,502 | | | | 1,302 | |
| Other | | | 1,542 | | | | 4,082 | | | | 2,153 | | | | 1,497 | | | | 1,519 | | | | 5,624 | | | | 2,861 | |
| Total Noninterest Income | | | 15,718 | | | | 17,799 | | | | 15,823 | | | | 14,431 | | | | 15,084 | | | | 33,517 | | | | 29,046 | |
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| NONINTEREST EXPENSE | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Salaries and Associate Benefits | | | 15,318 | | | | 15,604 | | | | 14,472 | | | | 15,096 | | | | 14,992 | | | | 30,922 | | | | 30,711 | |
| Occupancy, Net | | | 2,491 | | | | 2,362 | | | | 2,378 | | | | 2,409 | | | | 2,324 | | | | 4,853 | | | | 4,560 | |
| Furniture and Equipment | | | 2,583 | | | | 2,582 | | | | 2,534 | | | | 2,513 | | | | 2,494 | | | | 5,165 | | | | 4,843 | |
| Intangible Amortization | | | 1,459 | | | | 1,459 | | | | 1,458 | | | | 1,459 | | | | 1,458 | | | | 2,918 | | | | 2,917 | |
| Other | | | 8,905 | | | | 7,791 | | | | 10,772 | | | | 8,442 | | | | 8,629 | | | | 16,696 | | | | 17,428 | |
| Total Noninterest Expense | | | 30,756 | | | | 29,798 | | | | 31,614 | | | | 29,919 | | | | 29,897 | | | | 60,554 | | | | 60,459 | |
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| OPERATING PROFIT | | | 7,005 | | | | 10,318 | | | | 10,055 | | | | 10,870 | | | | 11,973 | | | | 17,323 | | | | 22,461 | |
| Provision for Income Taxes | | | 2,195 | | | | 3,038 | | | | 2,391 | | | | 3,699 | | | | 4,082 | | | | 5,233 | | | | 7,613 | |
| NET INCOME | | $ | 4,810 | | | $ | 7,280 | | | $ | 7,664 | | | $ | 7,171 | | | $ | 7,891 | | | $ | 12,090 | | | $ | 14,848 | |
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| PER SHARE DATA | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Basic Earnings | | $ | 0.28 | | | $ | 0.42 | | | $ | 0.44 | | | $ | 0.41 | | | $ | 0.43 | | | $ | 0.70 | | | $ | 0.81 | |
| Diluted Earnings | | $ | 0.28 | | | $ | 0.42 | | | $ | 0.44 | | | $ | 0.41 | | | $ | 0.43 | | | $ | 0.70 | | | $ | 0.81 | |
| Cash Dividends | | | 0.185 | | | | 0.185 | | | | 0.185 | | | | 0.175 | | | | 0.175 | | | | 0.370 | | | | 0.350 | |
| AVERAGE SHARES | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Basic | | | 17,146 | | | | 17,170 | | | | 17,444 | | | | 17,709 | | | | 18,089 | | | | 17,158 | | | | 18,248 | |
| Diluted | | | 17,147 | | | | 17,178 | | | | 17,445 | | | | 17,719 | | | | 18,089 | | | | 17,159 | | | | 18,248 | |
| CAPITAL CITY BANK GROUP, INC. | | | | | | | | | | | | | | | |
| CONSOLIDATED STATEMENT OF FINANCIAL CONDITION | | | | | | | | | | | | | |
| Unaudited | | | | | | | | | | | | | | | |
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| (Dollars in thousands, except per share data) | | 2008 Second Quarter | | | 2008 First Quarter | | | 2007 Fourth Quarter | | | 2007 Third Quarter | | | 2007 Second Quarter | |
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| ASSETS | | | | | | | | | | | | | | | |
| Cash and Due From Banks | | $ | 108,672 | | | $ | 97,525 | | | $ | 93,437 | | | $ | 91,378 | | | $ | 95,573 | |
| Funds Sold and Interest Bearing Deposits | | | 192,786 | | | | 241,202 | | | | 166,260 | | | | 19,599 | | | | 77,297 | |
| Total Cash and Cash Equivalents | | | 301,458 | | | | 338,727 | | | | 259,697 | | | | 110,977 | | | | 172,870 | |
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| Investment Securities, Available-for-Sale | | | 185,971 | | | | 186,944 | | | | 190,719 | | | | 184,609 | | | | 189,680 | |
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| Loans, Net of Unearned Interest | | | | | | | | | | | | | | | | | | | | |
| Commercial, Financial, & Agricultural | | | 196,075 | | | | 202,238 | | | | 208,864 | | | | 205,628 | | | | 203,555 | |
| Real Estate - Construction | | | 150,907 | | | | 152,060 | | | | 142,248 | | | | 145,343 | | | | 159,751 | |
| Real Estate - Commercial | | | 622,282 | | | | 624,826 | | | | 634,920 | | | | 631,418 | | | | 640,172 | |
| Real Estate - Residential | | | 481,397 | | | | 482,058 | | | | 481,150 | | | | 480,488 | | | | 493,783 | |
| Real Estate - Home Equity | | | 205,536 | | | | 197,093 | | | | 192,428 | | | | 183,620 | | | | 175,781 | |
| Consumer | | | 244,071 | | | | 238,663 | | | | 243,415 | | | | 246,137 | | | | 240,110 | |
| Other Loans | | | 9,436 | | | | 10,506 | | | | 7,222 | | | | 8,739 | | | | 14,715 | |
| Overdrafts | | | 7,111 | | | | 7,014 | | | | 5,603 | | | | 2,515 | | | | 2,844 | |
| Total Loans, Net of Unearned Interest | | | 1,916,815 | | | | 1,914,458 | | | | 1,915,850 | | | | 1,903,888 | | | | 1,930,711 | |
| Allowance for Loan Losses | | | (22,518 | ) | | | (20,277 | ) | | | (18,066 | ) | | | (18,001 | ) | | | (17,469 | ) |
| Loans, Net | | | 1,894,297 | | | | 1,894,181 | | | | 1,897,784 | | | | 1,885,887 | | | | 1,913,242 | |
| | | | | | | | | | | | | | | | | | | | | |
| Premises and Equipment, Net | | | 102,559 | | | | 100,145 | | | | 98,612 | | | | 95,816 | | | | 92,656 | |
| Intangible Assets | | | 95,651 | | | | 97,109 | | | | 98,568 | | | | 100,026 | | | | 101,485 | |
| Other Assets | | | 69,479 | | | | 75,406 | | | | 70,947 | | | | 62,611 | | | | 60,815 | |
| Total Other Assets | | | 267,689 | | | | 272,660 | | | | 268,127 | | | | 258,453 | | | | 254,956 | |
| | | | | | | | | | | | | | | | | | | | | |
| Total Assets | | $ | 2,649,415 | | | $ | 2,692,512 | | | $ | 2,616,327 | | | $ | 2,439,926 | | | $ | 2,530,748 | |
| | | | | | | | | | | | | | | | | | | | | |
| LIABILITIES | | | | | | | | | | | | | | | | | | | | |
| Deposits: | | | | | | | | | | | | | | | | | | | | |
| Noninterest Bearing Deposits | | $ | 416,992 | | | $ | 432,904 | | | $ | 432,659 | | | $ | 419,242 | | | $ | 456,986 | |
| NOW Accounts | | | 814,380 | | | | 800,128 | | | | 744,093 | | | | 530,619 | | | | 559,050 | |
| Money Market Accounts | | | 387,011 | | | | 381,474 | | | | 386,619 | | | | 399,578 | | | | 401,415 | |
| Regular Savings Accounts | | | 118,307 | | | | 116,018 | | | | 111,600 | | | | 115,955 | | | | 119,585 | |
| Certificates of Deposit | | | 426,236 | | | | 462,081 | | | | 467,373 | | | | 472,019 | | | | 472,554 | |
| Total Deposits | | | 2,162,926 | | | | 2,192,605 | | | | 2,142,344 | | | | 1,937,413 | | | | 2,009,590 | |
| | | | | | | | | | | | | | | | | | | | | |
| Short-Term Borrowings | | | 51,783 | | | | 61,781 | | | | 53,131 | | | | 63,817 | | | | 74,307 | |
| Subordinated Notes Payable | | | 62,887 | | | | 62,887 | | | | 62,887 | | | | 62,887 | | | | 62,887 | |
| Other Long-Term Borrowings | | | 36,857 | | | | 29,843 | | | | 26,731 | | | | 29,725 | | | | 41,276 | |
| Other Liabilities | | | 38,382 | | | | 47,723 | | | | 38,559 | | | | 47,031 | | | | 41,251 | |
| | | | | | | | | | | | | | | | | | | | | |
| Total Liabilities | | | 2,352,835 | | | | 2,394,839 | | | | 2,323,652 | | | | 2,140,873 | | | | 2,229,311 | |
| | | | | | | | | | | | | | | | | | | | | |
| SHAREOWNERS' EQUITY | | | | | | | | | | | | | | | | | | | | |
| Common Stock | | | 171 | | | | 172 | | | | 172 | | | | 176 | | | | 179 | |
| Additional Paid-In Capital | | | 36,382 | | | | 38,042 | | | | 38,243 | | | | 50,789 | | | | 58,001 | |
| Retained Earnings | | | 266,171 | | | | 264,538 | | | | 260,325 | | | | 255,876 | | | | 251,838 | |
| Accumulated Other Comprehensive Loss, Net of Tax | | | (6,144 | ) | | | (5,079 | ) | | | (6,065 | ) | | | (7,788 | ) | | | (8,581 | ) |
| | | | | | | | | | | | | | | | | | | | | |
| Total Shareowners' Equity | | | 296,580 | | | | 297,673 | | | | 292,675 | | | | 299,053 | | | | 301,437 | |
| | | | | | | | | | | | | | | | | | | | | |
| Total Liabilities and Shareowners' Equity | | $ | 2,649,415 | | | $ | 2,692,512 | | | $ | 2,616,327 | | | $ | 2,439,926 | | | $ | 2,530,748 | |
| | | | | | | | | | | | | | | | | | | | | |
| OTHER BALANCE SHEET DATA | | | | | | | | | | | | | | | | | | | | |
| Earning Assets | | $ | 2,295,572 | | | $ | 2,342,604 | | | $ | 2,272,829 | | | $ | 2,108,096 | | | $ | 2,197,688 | |
| Intangible Assets | | | | | | | | | | | | | | | | | | | | |
| Goodwill | | | 84,811 | | | | 84,811 | | | | 84,811 | | | | 84,811 | | | | 84,811 | |
| Deposit Base | | | 9,756 | | | | 11,167 | | | | 12,578 | | | | 13,988 | | | | 15,399 | |
| Other | | | 1,084 | | | | 1,131 | | | | 1,179 | | | | 1,227 | | | | 1,275 | |
| Interest Bearing Liabilities | | | 1,897,461 | | | | 1,914,212 | | | | 1,852,434 | | | | 1,674,600 | | | | 1,731,074 | |
| | | | | | | | | | | | | | | | | | | | | |
| Book Value Per Diluted Share | | $ | 17.33 | | | $ | 17.33 | | | $ | 17.03 | | | $ | 16.95 | | | $ | 16.87 | |
| Tangible Book Value Per Diluted Share | | | 11.74 | | | | 11.67 | | | | 11.30 | | | | 11.28 | | | | 11.19 | |
| | | | | | | | | | | | | | | | | | | | | |
| Actual Basic Shares Outstanding | | | 17,111 | | | | 17,175 | | | | 17,183 | | | | 17,628 | | | | 17,869 | |
| Actual Diluted Shares Outstanding | | | 17,112 | | | | 17,183 | | | | 17,184 | | | | 17,639 | | | | 17,869 | |
| CAPITAL CITY BANK GROUP, INC. | | | | | | | | |
| ALLOWANCE FOR LOAN LOSSES | | | | | | | | |
| AND NONPERFORMING ASSETS | | | | | | | | |
| Unaudited | | | | | | | | |
| | | | 2008 | | 2008 | 2007 | 2007 | 2007 |
| (Dollars in thousands) | | | Second Quarter | First Quarter | Fourth Quarter | Third Quarter | Second Quarter |
| | | | | | | | | |
| ALLOWANCE FOR LOAN LOSSES | | | | | | | | |
| Balance at Beginning of Period | | $ | 20,277 | | $ 18,066 | $ 18,001 | $ 17,469 | $ 17,108 |
| Provision for Loan Losses | | | 5,432 | | 4,142 | 1,699 | 1,552 | 1,675 |
| Net Charge-Offs | | | 3,191 | | 1,931 | 1,634 | 1,020 | 1,314 |
| | | | | | | | | |
| Balance at End of Period | | $ | 22,518 | | $ 20,277 | $ 18,066 | $ 18,001 | $ 17,469 |
| As a % of Loans | | | 1.18% | | 1.06% | 0.95% | 0.95% | 0.91% |
| As a % of Nonperforming Loans | | | 51.80% | | 54.32% | 71.92% | 145.49% | 193.68% |
| As a % of Nonperforming Assets | | | 47.12% | | 49.34% | 64.15% | 128.05% | 172.62% |
| | | | | | | | | |
| CHARGE-OFFS | | | | | | | | |
| Commercial, Financial and Agricultural | | $ | 407 | | $ 636 | $ 370 | $ 279 | $ 253 |
| Real Estate - Construction | | | 158 | | 572 | 58 | - | - |
| Real Estate - Commercial | | | 1,115 | | 126 | 133 | 245 | 5 |
| Real Estate - Residential | | | 817 | | 176 | 209 | 161 | 992 |
| Consumer | | | 1,232 | | 1,170 | 1,302 | 854 | 534 |
| | | | | | | | | |
| Total Charge-Offs | | $ | 3,729 | | $ 2,680 | $ 2,072 | $ 1,539 | $ 1,784 |
| | | | | | | | | |
| RECOVERIES | | | | | | | | |
| Commercial, Financial and Agricultural | | $ | 55 | | $ 139 | $ 47 | $ 44 | $ 47 |
| Real Estate - Construction | | | - | | - | - | - | - |
| Real Estate - Commercial | | | 13 | | 1 | 2 | 2 | 5 |
| Real Estate - Residential | | | 24 | | 3 | 5 | 2 | 26 |
| Consumer | | | 446 | | 606 | 384 | 471 | 392 |
| | | | | | | | | |
| Total Recoveries | | $ | 538 | | $ 749 | $ 438 | $ 519 | $ 470 |
| | | | | | | | | |
| NET CHARGE-OFFS | | $ | 3,191 | | $ �� 1,931 | $ 1,634 | $ 1,020 | $ 1,314 |
Net Charge-Offs as a % of Average Loans(1) | 0.67% | | 0.41% | 0.34% | 0.21% | 0.27% |
| | | | | | | | | |
| RISK ELEMENT ASSETS | | | | | | | | |
| Nonaccruing Loans | | $ | 41,738 | | $ �� 35,352 | $ 25,120 | $ 12,373 | $ 9,019 |
| Restructured Loans | | | 1,733 | | 1,980 | - | - | - |
| Total Nonperforming Loans | | | 43,471 | | 37,332 | 25,120 | 12,373 | 9,019 |
| Other Real Estate | | | 4,322 | | 3,768 | 3,043 | 1,685 | 1,102 |
| Total Nonperforming Assets | | $ | 47,793 | | $ 41,100 | $ 28,163 | $ 14,058 | $ 10,121 |
| Past Due Loans 90 Days or More | | $ | 896 | | $ 842 | $ 416 | $ 874 | $ 332 |
| Nonperforming Loans as a % of Loans | | | 2.27% | | 1.95% | 1.31% | 0.65% | 0.47% |
| Nonperforming Assets as a % of | | | | | | | | |
| Loans and Other Real Estate | | | 2.49% | | 2.14% | 1.47% | 0.74% | 0.52% |
Nonperforming Assets as a % of Capital(2) | | 14.98% | | 12.93% | 9.06% | 4.43% | 3.17% |
| | | | | | | | | |
| | | | | | | | | |
| (1) Annualized | | | | | | | | |
| (2) Capital includes allowance for loan losses. | | | | | | |
AVERAGE BALANCE AND INTEREST RATES(1) | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Unaudited | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Second Quarter 2008 | | | First Quarter 2008 | | | Fourth Quarter 2007 | | | Third Quarter 2007 | | | Second Quarter 2007 | | | June 2008 YTD | | | June 2007 YTD | |
| (Dollars in thousands) | | Average Balance | | | Interest | | | Average Rate | | | Average Balance | | | Interest | | | Average Rate | | | Average Balance | | | Interest | | | Average Rate | | | Average Balance | | | Interest | | | Average Rate | | | Average Balance | | | Interest | | | Average Rate | | | Average Balance | | | Interest | | | Average Rate | | | Average Balance | | | Interest | | | Average Rate | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| ASSETS: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Loans, Net of Unearned Interest | | $ | 1,908,802 | | | | 33,610 | | | | 7.08 | % | | $ | 1,909,574 | | | | 35,453 | | | | 7.47 | % | | $ | 1,908,069 | | | | 37,969 | | | | 7.89 | % | | $ | 1,907,235 | | | | 38,901 | | | | 8.09 | % | | $ | 1,944,969 | | | | 39,300 | | | | 8.10 | % | | $ | 1,909,187 | | | | 69,063 | | | | 7.27 | % | | $ | 1,962,499 | | | | 78,564 | | | | 8.07 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Investment Securities | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Taxable Investment Securities | | | 93,814 | | | | 1,028 | | | | 4.38 | % | | | 94,786 | | | | 1,108 | | | | 4.67 | % | | | 99,055 | | | | 1,226 | | | | 4.93 | % | | | 102,618 | | | | 1,224 | | | | 4.75 | % | | | 105,425 | | | | 1,236 | | | | 4.68 | % | | | 94,300 | | | | 2,136 | | | | 4.52 | % | | | 106,894 | | | | 2,499 | | | | 4.68 | % |
| Tax-Exempt Investment Securities | | | 94,371 | | | | 1,200 | | | | 5.09 | % | | | 90,790 | | | | 1,207 | | | | 5.32 | % | | | 87,358 | | | | 1,178 | | | | 5.39 | % | | | 85,446 | | | | 1,142 | | | | 5.35 | % | | | 83,907 | | | | 1,088 | | | | 5.19 | % | | | 92,581 | | | | 2,407 | | | | 5.20 | % | | | 83,270 | | | | 2,127 | | | | 5.11 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Total Investment Securities | | | 188,185 | | | | 2,228 | | | | 4.73 | % | | | 185,576 | | | | 2,315 | | | | 4.99 | % | | | 186,413 | | | | 2,404 | | | | 5.15 | % | | | 188,064 | | | | 2,366 | | | | 5.02 | % | | | 189,332 | | | | 2,324 | | | | 4.91 | % | | | 186,881 | | | | 4,543 | | | | 4.86 | % | | | 190,164 | | | | 4,626 | | | | 4.87 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Funds Sold | | | 206,984 | | | | 1,028 | | | | 1.96 | % | | | 206,313 | | | | 1,574 | | | | 3.02 | % | | | 96,748 | | | | 1,064 | | | | 4.31 | % | | | 49,438 | | | | 639 | | | | 5.06 | % | | | 52,935 | | | | 689 | | | | 5.15 | % | | | 206,649 | | | | 2,602 | | | | 2.49 | % | | | 46,669 | | | | 1,210 | | | | 5.16 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Total Earning Assets | | | 2,303,971 | | | $ | 36,866 | | | | 6.43 | % | | | 2,301,463 | | | $ | 39,342 | | | | 6.87 | % | | | 2,191,230 | | | $ | 41,437 | | | | 7.50 | % | | | 2,144,737 | | | $ | 41,906 | | | | 7.75 | % | | | 2,187,236 | | | $ | 42,313 | | | | 7.76 | % | | | 2,302,717 | | | $ | 76,208 | | | | 6.65 | % | | | 2,199,332 | | | $ | 84,400 | | | | 7.73 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Cash and Due From Banks | | | 82,182 | | | | | | | | | | | | 94,247 | | | | | | | | | | | | 85,598 | | | | | | | | | | | | 84,477 | | | | | | | | | | | | 88,075 | | | | | | | | | | | | 88,214 | | | | | | | | | | | | 88,376 | | | | | | | | | |
| Allowance for Loan Losses | | | (20,558 | ) | | | | | | | | | | | (18,227 | ) | | | | | | | | | | | (18,127 | ) | | | | | | | | | | | (17,664 | ) | | | | | | | | | | | (17,263 | ) | | | | | | | | | | | (19,392 | ) | | | | | | | | | | | (17,169 | ) | | | | | | | | |
| Other Assets | | | 269,176 | | | | | | | | | | | | 268,991 | | | | | | | | | | | | 260,981 | | | | | | | | | | | | 256,153 | | | | | | | | | | | | 253,204 | | | | | | | | | | | | 269,083 | | | | | | | | | | | | 250,428 | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Total Assets | | $ | 2,634,771 | | | | | | | | | | | $ | 2,646,474 | | | | | | | | | | | $ | 2,519,682 | | | | | | | | | | | $ | 2,467,703 | | | | | | | | | | | $ | 2,511,252 | | | | | | | | | | | $ | 2,640,622 | | | | | | | | | | | $ | 2,520,967 | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| LIABILITIES: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Interest Bearing Deposits | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| NOW Accounts | | $ | 788,237 | | | $ | 1,935 | | | | 0.99 | % | | $ | 773,891 | | | $ | 3,440 | | | | 1.79 | % | | $ | 608,347 | | | $ | 2,980 | | | | 1.94 | % | | $ | 525,795 | | | $ | 2,531 | | | | 1.91 | % | | $ | 541,525 | | | $ | 2,611 | | | | 1.93 | % | | $ | 781,064 | | | $ | 5,375 | | | | 1.38 | % | | $ | 546,884 | | | $ | 5,237 | | | | 1.93 | % |
| Money Market Accounts | | | 376,996 | | | | 1,210 | | | | 1.29 | % | | | 389,828 | | | | 2,198 | | | | 2.27 | % | | | 404,406 | | | | 3,217 | | | | 3.16 | % | | | 403,957 | | | | 3,565 | | | | 3.50 | % | | | 393,403 | | | | 3,458 | | | | 3.53 | % | | | 383,412 | | | | 3,408 | | | | 1.79 | % | | | 390,088 | | | | 6,885 | | | | 3.56 | % |
| Savings Accounts | | | 117,182 | | | | 29 | | | | 0.10 | % | | | 113,163 | | | | 34 | | | | 0.12 | % | | | 113,527 | | | | 57 | | | | 0.20 | % | | | 117,451 | | | | 70 | | | | 0.24 | % | | | 122,560 | | | | 74 | | | | 0.24 | % | | | 115,172 | | | | 63 | | | | 0.11 | % | | | 123,982 | | | | 152 | | | | 0.25 | % |
| Time Deposits | | | 443,006 | | | | 3,988 | | | | 3.62 | % | | | 467,280 | | | | 4,809 | | | | 4.14 | % | | | 471,454 | | | | 5,069 | | | | 4.27 | % | | | 471,868 | | | | 5,100 | | | | 4.29 | % | | | 474,761 | | | | 4,955 | | | | 4.19 | % | | | 455,143 | | | | 8,797 | | | | 3.89 | % | | | 477,845 | | | | 9,824 | | | | 4.15 | % |
| Total Interest Bearing Deposits | | | 1,725,421 | | | | 7,162 | | | | 1.67 | % | | | 1,744,162 | | | | 10,481 | | | | 2.42 | % | | | 1,597,734 | | | | 11,323 | | | | 2.81 | % | | | 1,519,071 | | | | 11,266 | | | | 2.94 | % | | | 1,532,249 | | | | 11,098 | | | | 2.91 | % | | | 1,734,791 | | | | 17,643 | | | | 2.05 | % | | | 1,538,799 | | | | 22,098 | | | | 2.90 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Short-Term Borrowings | | | 55,830 | | | | 296 | | | | 2.13 | % | | | 68,095 | | | | 521 | | | | 3.06 | % | | | 64,842 | | | | 639 | | | | 3.89 | % | | | 65,130 | | | | 734 | | | | 4.45 | % | | | 66,764 | | | | 737 | | | | 4.41 | % | | | 61,963 | | | | 817 | | | | 2.64 | % | | | 67,832 | | | | 1,498 | | | | 4.44 | % |
| Subordinated Notes Payable | | | 62,887 | | | | 931 | | | | 5.86 | % | | | 62,887 | | | | 931 | | | | 5.96 | % | | | 62,887 | | | | 936 | | | | 5.91 | % | | | 62,887 | | | | 936 | | | | 5.91 | % | | | 62,887 | | | | 932 | | | | 5.94 | % | | | 62,887 | | | | 1,862 | | | | 5.86 | % | | | 62,887 | | | | 1,858 | | | | 5.96 | % |
| Other Long-Term Borrowings | | | 34,612 | | | | 396 | | | | 4.60 | % | | | 27,644 | | | | 331 | | | | 4.82 | % | | | 28,215 | | | | 343 | | | | 4.83 | % | | | 38,269 | | | | 453 | | | | 4.70 | % | | | 42,284 | | | | 496 | | | | 4.71 | % | | | 31,128 | | | | 727 | | | | 4.70 | % | | | 42,708 | | | | 998 | | | | 4.71 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Total Interest Bearing Liabilities | | | 1,878,750 | | | $ | 8,785 | | | | 1.88 | % | | | 1,902,788 | | | $ | 12,264 | | | | 2.59 | % | | | 1,753,678 | | | $ | 13,241 | | | | 3.00 | % | | | 1,685,357 | | | $ | 13,389 | | | | 3.15 | % | | | 1,704,184 | | | $ | 13,263 | | | | 3.12 | % | | | 1,890,769 | | | $ | 21,049 | | | | 2.24 | % | | | 1,712,226 | | | $ | 26,452 | | | | 3.11 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Noninterest Bearing Deposits | | | 415,125 | | | | | | | | | | | | 404,712 | | | | | | | | | | | | 419,002 | | | | | | | | | | | | 435,089 | | | | | | | | | | | | 455,169 | | | | | | | | | | | | 409,918 | | | | | | | | | | | | 456,728 | | | | | | | | | |
| Other Liabilities | | | 40,006 | | | | | | | | | | | | 42,170 | | | | | | | | | | | | 47,660 | | | | | | | | | | | | 45,721 | | | | | | | | | | | | 42,547 | | | | | | | | | | | | 41,088 | | | | | | | | | | | | 39,115 | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Total Liabilities | | | 2,333,881 | | | | | | | | | | | | 2,349,670 | | | | | | | | | | | | 2,220,340 | | | | | | | | | | | | 2,166,167 | | | | | | | | | | | | 2,201,900 | | | | | | | | | | | | 2,341,775 | | | | | | | | | | | | 2,208,069 | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| SHAREOWNERS' EQUITY: | | $ | 300,890 | | | | | | | | | | | $ | 296,804 | | | | | | | | | | | $ | 299,342 | | | | | | | | | | | $ | 301,536 | | | | | | | | | | | $ | 309,352 | | | | | | | | | | | $ | 298,847 | | | | | | | | | | | $ | 312,898 | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Total Liabilities and Shareowners' Equity | | $ | 2,634,771 | | | | | | | | | | | $ | 2,646,474 | | | | | | | | | | | $ | 2,519,682 | | | | | | | | | | | $ | 2,467,703 | | | | | | | | | | | $ | 2,511,252 | | | | | | | | | | | $ | 2,640,622 | | | | | | | | | | | $ | 2,520,967 | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Interest Rate Spread | | | | | | $ | 28,081 | | | | 4.55 | % | | | | | | $ | 27,078 | | | | 4.28 | % | | | | | | $ | 28,196 | | | | 4.50 | % | | | | | | $ | 28,517 | | | | 4.60 | % | | | | | | $ | 29,050 | | | | 4.64 | % | | | | | | $ | 55,159 | | | | 4.41 | % | | | | | | $ | 57,948 | | | | 4.62 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Interest Income and Rate Earned(1) | | | $ | 36,866 | | | | 6.43 | % | | | | | | $ | 39,342 | | | | 6.87 | % | | | | | | $ | 41,437 | | | | 7.50 | % | | | | | | $ | 41,906 | | | | 7.75 | % | | | | | | $ | 42,313 | | | | 7.76 | % | | | | | | $ | 76,208 | | | | 6.65 | % | | | | | | $ | 84,400 | | | | 7.73 | % |
Interest Expense and Rate Paid(2) | | | | | | | 8,785 | | | | 1.53 | % | | | | | | | 12,264 | | | | 2.14 | % | | | | | | | 13,241 | | | | 2.40 | % | | | | | | | 13,389 | | | | 2.48 | % | | | | | | | 13,263 | | | | 2.43 | % | | | | | | | 21,049 | | | | 1.84 | % | | | | | | | 26,452 | | | | 2.42 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Net Interest Margin | | | | | | $ | 28,081 | | | | 4.90 | % | | | | | | $ | 27,078 | | | | 4.73 | % | | | | | | $ | 28,196 | | | | 5.10 | % | | | | | | $ | 28,517 | | | | 5.27 | % | | | | | | $ | 29,050 | | | | 5.33 | % | | | | | | $ | 55,159 | | | | 4.81 | % | | | | | | $ | 57,948 | | | | 5.31 | % |
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(2) Rate calculated based on average earning assets