Capital City Bank Group, Inc.
Reports Second Quarter 2009 Results
TALLAHASSEE, Fla. (July 21, 2009) – Capital City Bank Group, Inc. (NASDAQ: CCBG) today reported net income for the second quarter of 2009 totaling $0.8 million ($0.04 per diluted share) compared to net income of $0.6 million ($0.04 per diluted share) for the first quarter of 2009 and $4.8 million ($0.28 per diluted share) for the second quarter of 2008. Earnings for the first six months of 2009 totaled $1.4 million ($.08 per diluted share) compared to $12.1 million ($0.70 per diluted share) for 2008.
Earnings for the three and six month periods reflect loan loss provisions of $8.4 million ($0.30 per diluted share) and $16.8 million ($0.61 per diluted share), respectively, and a one-time special FDIC assessment of approximately $1.2 million ($0.04 per diluted share) recorded in the second quarter.
“Given the very tough ongoing operating environment in Florida, we are pleased to be reporting net income for each of the first two quarters,” said William G. Smith, Jr., Chairman, President and Chief Executive Officer of Capital City Bank Group. “Quarter over quarter, excluding the special FDIC insurance assessment, our operating revenues were up and expenses were down, reflecting the underlying strength of our overall business strategy.
“At June 30, nonperforming assets (which include nonaccrual loans, restructured loans, and other real estate owned) were up $16.8 million, or 13% over the first quarter. However, we were encouraged to see past due loans and gross additions to the nonaccrual loan portfolio decline for two consecutive quarters. This, coupled with continued improvement in problem loan resolutions resulted in a net increase of $0.8 million in the nonaccrual portfolio. Restructured loans and other real estate owned, which increased $7.8 million and $8.2 million, respectively, accounted for essentially all of the increase in nonperforming assets, which is a favorable and natural progression as problem loans migrate through the resolution phase. Consequently, we believe we are in an improved position to ultimately collect on these loans or dispose of the properties.
“While we view the slowdown in gross additions to nonaccruing loans and the migration among nonperforming categories as positive changes in the status of our nonperforming assets, it may still be too early to call a peak in nonperforming loans. However, we believe these recent developments suggest a trend towards more stability at this point in the credit cycle.
“Also, on a positive note, loan and deposit growth have been steady during the second quarter and the first half of the year, reflecting the fact that our associates are doing a good job recognizing quality opportunities in this disrupted banking marketplace. Lenders are successfully converting clients who are interested in moving or expanding their banking relationships. On the deposit side, core deposits are higher primarily in noninterest demand accounts and CDs, as our free checking product continues to grow in both balances and number of accounts, and competitive rate pressure affecting our CD production has eased in many markets. Our net interest margin was 5.11% for the second quarter,” said Smith.
The Return on Average Assets was .12% and the Return on Average Equity was 1.12% for the second quarter of 2009. These metrics were .11% and .94% for the first quarter of 2009 and .73% and 6.43% for the second quarter of 2008, respectively.
For the first half of 2009, the Return on Average Assets was .12% and the Return on Average Equity was 1.03% compared to .92% and 8.14%, respectively, for the first half of 2008.
Discussion of Financial Condition
Average earning assets were $2.175 billion for the second quarter of 2009, an increase of $9.0 million, or 0.4% from the first quarter of 2009, and an increase of $24.4 million, or 1.1% from the fourth quarter of 2008. The increase from the first quarter is primarily attributable to a $4.4 million and $10.1 million increase in the investment and loan portfolios, respectively. An increase in deposits funded the earning asset growth. Compared to the fourth quarter of 2008, the increase in earning assets primarily reflects growth in the loan portfolio partially offset by a reduction in short-term investments. We have now experienced loan growth for four consecutive quarters as production has increased and loan payoffs and paydowns have slowed. We believe this trend continued through the recent quarter due to the efforts of our bankers to reach clients who are interested in moving or expanding their banking relationships. Loan growth was primarily attributable to commercial real estate mortgages and home equity loans.
At the end of the second quarter, nonperforming assets (including nonaccrual loans, restructured loans, and other real estate owned) totaled $143.6 million, an increase of $16.8 million, or 13% from the first quarter and $35.8 million, or 33% from the fourth quarter of 2008. The increase from the prior linked quarter reflects an increase of $7.8 million in restructured loans and an increase of $8.2 million in other real estate owned properties. Nonaccrual loans totaled $111.0 million at the end of the second quarter, a net increase of $0.8 million from the prior linked quarter. The level of gross additions to non-accruing loans has declined by $15.2 million and $6.8 million, respectively, for the last two quarters and the volume of problem loan resolutions has improved including the resolutions of several larger credits during the second quarter. Nonperforming assets represented 7.19% of loans and other real estate at the end of the second quarter compared to 6.39% at the prior quarter-end and 5.48% at year-end 2008.
Average total deposits were $1.971 billion for the second quarter, an increase of $13.8 million, or 0.7%, from the first quarter and an increase of $25.3 million, or 1.3%, from the fourth quarter of 2008. On a linked quarter basis, the increase in deposits reflects higher core deposits primarily in noninterest demand accounts and certificates of deposit, which have been partially offset by declining public fund balances. Our absolutely free checking product continues to be successful as both balances and the number of accounts continue to post growth quarter over quarter. Certificates of deposit balances have grown as rate pressures from higher paying institutions have eased in most of our markets. Compared to year-end 2008, the increase in average deposits reflects higher core deposits and public funds. Core deposits have increased as discussed above and, while an influx of public funds was experienced late in the first quarter of 2009, there has been an easing in these balances, which began in late April. Additionally, money market balances have experienced a steady decline during the first half of 2009. We continue to pursue prudent pricing discipline and to manage the mix of our deposits. Therefore, we are not attempting to compete with higher rate paying competitors for these deposits.
We maintained an average net overnight funds (deposits with banks plus Fed funds sold less Fed funds purchased) purchased position of $49.8 million during the second quarter of 2009 compared to an average net overnight funds purchased position of $33.9 million in the first quarter and an average overnight funds purchased position of $3.2 million at year-end 2008. The unfavorable variance in funds purchased position during both periods is attributable to an increase in the investment and loan portfolios, higher non-earning assets and lower equity. Deposit growth partially offset this decline.
Equity capital was $272.7 million as of June 30, 2009, compared to $275.5 million as of March 31, 2009 and $278.8 million as of December 31, 2008. Our leverage ratio was 11.07%, 11.25%, and 11.51%, respectively, for the comparable periods. Further, our risk-adjusted capital ratio of 14.20% at June 30, 2009 exceeds the 8.0% minimum requirement and the 10% threshold to be designated as “well-capitalized” under the risk-based regulatory guidelines. During the first quarter 2009, we repurchased approximately 146,000 shares of our common stock at a weighted average stock price of $10.65; no shares were repurchased during the second quarter. Our strong capital position has allowed us to continue paying a quarterly dividend to our shareowners despite lower earnings performance. We will continue to monitor our capital and liquidity position to ensure that continuation of our dividend does not place unnecessary strain on our capital levels.
Discussion of Operating Results
Tax equivalent net interest income for the second quarter of 2009 was $27.7 million compared to $27.6 million for the first quarter of 2009 and $28.1 million for the second quarter of 2008. For the first half of 2009, tax equivalent net interest income totaled $55.3 million compared to $55.2 million in 2008.
The increase in the net interest income on a linked quarter basis was partially due to one additional calendar day in the second quarter and was favorably impacted by the recovery of interest on several larger loans, which were resolved during the quarter. Higher foregone interest on nonaccrual loans and a decline in loan fees partially offset the improvement in net interest income. The decline in loan fees resulted from a one-time write-off totaling $175,000. Additionally, the loan portfolio continued to reprice lower without the offsetting benefit in funding costs.
The decline from the second quarter of 2008 reflects the downward repricing of earning assets, higher foregone interest on nonaccrual loans, and lower loan fees. Partially offsetting the decline was the lower costs of funds. We have responded aggressively to the federal funds rate reductions, which began in September 2007. This, coupled with a favorable shift in mix of deposits, has resulted in a significantly lower cost of funds year over year.
The net interest margin of 5.11% declined five basis points over the linked quarter, attributable to lower earning assets yields. As compared to the second quarter of 2008, the margin improved 21 basis points reflecting the favorable shift in the mix of deposits and aggressive deposit repricing.
The slight increase in net interest income for the first half of 2009 as compared to the same period in 2008 resulted from lower costs of funds discussed above; mostly offset by lower earning assets yields, higher foregone interest and lower loan fees.
The provision for loan losses was $8.4 million for both the second and first quarters of 2009 compared to $5.4 million for the second quarter of 2008. The loan loss provision for both quarters and the first half of the year reflects a higher level of required general reserves driven by an increased level of net loan charge-offs and higher loss ratios associated with real estate loans, primarily loans to builders/investors secured by residential houses and vacant land. For the same comparable periods, our level of specific reserves on impaired loans has also increased due to both a higher level of nonaccrual loans and real estate collateral devaluation, though not as significant in the current quarter due to the resolution of some larger problem loans and the slowing of loans migrating to nonaccrual status. Net charge-offs in the second quarter totaled $6.8 million, or 1.39%, of average loans compared to $5.2 million, or 1.08% in the first quarter. At quarter-end, the allowance for loan losses was 2.12% of outstanding loans (net of overdrafts) and provided coverage of 34% of nonperforming loans.
Noninterest income for the second quarter increased $0.6 million, or 4.2%, from the first quarter reflective of higher deposit fees ($464,000) and mortgage banking fees ($317,000), partially offset by lower merchant fees ($295,000). The increase in deposit fees primarily reflects an adjustment to our deposit fees midway through the first quarter. Mortgage banking fees increased due to higher secondary market loan production, which was driven by the historically low interest rate environment. The lower level of merchant fees is an expected seasonal variance for our sole remaining merchant who has historically had lower sales during the summer months. Compared to the second quarter of 2008, noninterest income declined by $1.1 million, or 6.9%, primarily due to lower merchant fees related to the sale of a major portion of the bank’s merchant services portfolio in July, 2008. For the first six months of 2009, as compared to the comparable period of 2008, noninterest income decreased $4.8 million, or 14.4%, due to the aforementioned merchant services portfolio sale as well as a $2.4 million pre-tax gain from the redemption of Visa shares realized in the first quarter of 2008.
Noninterest expense increased $0.7 million, or 2.1%, from the first quarter due to the one-time FDIC special assessment ($1.2 million) and a higher level ($550,000) of expense associated with other real estate owned properties, including write-downs due to valuation declines. Lower compensation expense of $1.2 million, primarily reflective of the adjustments to our stock and cash incentive plans partially offset these unfavorable variances. Compared to the second quarter of 2008, noninterest expense increased $2.2 million, or 7.1%, primarily reflective of the higher FDIC insurance premiums of $2.0 million, which includes the special assessment, higher expense ($1.2 million) for other real estate properties owned, and an increase in our pension expense ($1.0 million). The adjustments to our stock and cash incentive plans as well as a lower level of interchange fees partially offset these unfavorable variances. For the first six months of 2009, as compared to the comparable period for 2008, noninterest expense increased $4.6 million, or 7.7%, due to the same aforementioned factors, including the impact of the reversal of a portion ($1.1 million) of our Visa litigation accrual in the first quarter of 2008.
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 $2.5 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 68 banking offices and 79 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, 2008, 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.
EARNINGS HIGHLIGHTS | ||||||||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||||||||
(Dollars in thousands, except per share data) | Jun 30, 2009 | Mar 31, 2009 | Jun 30, 2008 | Jun 30, 2009 | Jun 30, 2008 | |||||||||||||||
EARNINGS | ||||||||||||||||||||
Net Income | $ | 774 | 650 | $ | 4,810 | $ | 1,424 | $ | 12,090 | |||||||||||
Diluted Earnings Per Common Share | $ | 0.04 | 0.04 | $ | 0.28 | $ | 0.08 | $ | 0.70 | |||||||||||
PERFORMANCE | ||||||||||||||||||||
Return on Average Equity | 1.12 | % | 0.94 | % | 6.43 | % | 1.03 | % | 8.14 | % | ||||||||||
Return on Average Assets | 0.12 | % | 0.11 | % | 0.73 | % | 0.12 | % | 0.92 | % | ||||||||||
Net Interest Margin | 5.11 | % | 5.16 | % | 4.90 | % | 5.13 | % | 4.81 | % | ||||||||||
Noninterest Income as % of Operating Revenue | 35.07 | % | 34.22 | % | 36.39 | % | 34.65 | % | 38.33 | % | ||||||||||
Efficiency Ratio | 75.44 | % | 75.07 | % | 66.89 | % | 75.26 | % | 65.00 | % | ||||||||||
CAPITAL ADEQUACY | ||||||||||||||||||||
Tier 1 Capital Ratio | 12.85 | % | 13.09 | % | 13.15 | % | 12.85 | % | 13.15 | % | ||||||||||
Total Capital Ratio | 14.20 | % | 14.40 | % | 14.35 | % | 14.20 | % | 14.35 | % | ||||||||||
Tangible Capital Ratio | 7.47 | % | 7.63 | % | 7.87 | % | 7.47 | % | 7.87 | % | ||||||||||
Leverage Ratio | 11.07 | % | 11.25 | % | 10.61 | % | 11.07 | % | 10.61 | % | ||||||||||
Equity to Assets | 10.80 | % | 11.02 | % | 11.19 | % | 10.80 | % | 11.19 | % | ||||||||||
ASSET QUALITY | ||||||||||||||||||||
Allowance as % of Non-Performing Loans | 33.71 | % | 34.82 | % | 51.80 | % | 33.71 | % | 51.80 | % | ||||||||||
Allowance as a % of Loans | 2.12 | % | 2.04 | % | 1.18 | % | 2.12 | % | 1.18 | % | ||||||||||
Net Charge-Offs as % of Average Loans | 1.39 | % | 1.08 | % | 0.67 | % | 1.23 | % | 0.54 | % | ||||||||||
Nonperforming Assets as % of Loans and ORE | 7.19 | % | 6.39 | % | 2.49 | % | 7.19 | % | 2.49 | % | ||||||||||
STOCK PERFORMANCE | ||||||||||||||||||||
High | $ | 17.35 | $ | 27.31 | $ | 30.19 | $ | 27.31 | $ | 30.19 | ||||||||||
Low | $ | 11.01 | $ | 9.50 | $ | 21.76 | $ | 9.50 | $ | 21.76 | ||||||||||
Close | $ | 16.85 | $ | 11.46 | $ | 21.76 | $ | 16.85 | $ | 21.76 | ||||||||||
Average Daily Trading Volume | 40,130 | 75,117 | 36,196 | 57,342 | 34,064 |
CAPITAL CITY BANK GROUP, INC. | ||||||||||||||||||||||||||||
CONSOLIDATED STATEMENT OF INCOME | ||||||||||||||||||||||||||||
Unaudited | ||||||||||||||||||||||||||||
Six Months Ended | ||||||||||||||||||||||||||||
June 30 | ||||||||||||||||||||||||||||
(Dollars in thousands, except per share data) | 2009 Second Quarter | 2009 First Quarter | 2008 Fourth Quarter | 2008 Third Quarter | 2008 Second Quarter | 2009 | 2008 | |||||||||||||||||||||
INTEREST INCOME | ||||||||||||||||||||||||||||
Interest and Fees on Loans | $ | 29,742 | $ | 29,537 | $ | 31,570 | $ | 32,435 | $ | 33,422 | $ | 59,279 | $ | 68,677 | ||||||||||||||
Investment Securities | 1,437 | 1,513 | 1,627 | 1,744 | 1,810 | 2,950 | 3,703 | |||||||||||||||||||||
Funds Sold | 1 | 3 | 32 | 475 | 1,028 | 4 | 2,603 | |||||||||||||||||||||
Total Interest Income | 31,180 | 31,053 | 33,229 | 34,654 | 36,260 | 62,233 | 74,983 | |||||||||||||||||||||
INTEREST EXPENSE | ||||||||||||||||||||||||||||
Deposits | 2,500 | 2,495 | 3,848 | 5,815 | 7,162 | 4,995 | 17,643 | |||||||||||||||||||||
Short-Term Borrowings | 88 | 68 | 110 | 230 | 296 | 156 | 817 | |||||||||||||||||||||
Subordinated Notes Payable | 931 | 927 | 937 | 936 | 931 | 1,858 | 1,862 | |||||||||||||||||||||
Other Long-Term Borrowings | 566 | 568 | 587 | 488 | 396 | 1,134 | 727 | |||||||||||||||||||||
Total Interest Expense | 4,085 | 4,058 | 5,482 | 7,469 | 8,785 | 8,143 | 21,049 | |||||||||||||||||||||
Net Interest Income | 27,095 | 26,995 | 27,747 | 27,185 | 27,475 | 54,090 | 53,934 | |||||||||||||||||||||
Provision for Loan Losses | 8,426 | 8,410 | 12,497 | 10,425 | 5,432 | 16,836 | 9,574 | |||||||||||||||||||||
Net Interest Income after Provision for Loan Losses | 18,669 | 18,585 | 15,250 | 16,760 | 22,043 | 37,254 | 44,360 | |||||||||||||||||||||
NONINTEREST INCOME | ||||||||||||||||||||||||||||
Service Charges on Deposit Accounts | 7,162 | 6,698 | 6,807 | 7,110 | 7,060 | 13,860 | 13,825 | |||||||||||||||||||||
Data Processing Fees | 896 | 870 | 937 | 873 | 812 | 1,766 | 1,625 | |||||||||||||||||||||
Asset Management Fees | 930 | 970 | 935 | 1,025 | 1,125 | 1,900 | 2,275 | |||||||||||||||||||||
Retail Brokerage Fees | 625 | 493 | 630 | 565 | 735 | 1,118 | 1,204 | |||||||||||||||||||||
Gain on Sale of Investment Securities | 6 | - | 3 | 27 | 30 | 6 | 95 | |||||||||||||||||||||
Mortgage Banking Revenues | 902 | 584 | 292 | 331 | 506 | 1,486 | 1,000 | |||||||||||||||||||||
Merchant Fees | 663 | 958 | 650 | 616 | 2,074 | 1,621 | 4,282 | |||||||||||||||||||||
Interchange Fees | 1,118 | 1,056 | 1,007 | 1,073 | 1,076 | 2,174 | 2,085 | |||||||||||||||||||||
Gain on Sale of Portion of Merchant Services Portfolio | - | - | - | 6,250 | - | - | - | |||||||||||||||||||||
ATM/Debit Card Fees | 884 | 863 | 744 | 742 | 758 | 1,747 | 1,502 | |||||||||||||||||||||
Other | 1,448 | 1,550 | 1,306 | 1,600 | 1,542 | 2,998 | 5,624 | |||||||||||||||||||||
Total Noninterest Income | 14,634 | 14,042 | 13,311 | 20,212 | 15,718 | 28,676 | 33,517 | |||||||||||||||||||||
NONINTEREST EXPENSE | ||||||||||||||||||||||||||||
Salaries and Associate Benefits | 16,049 | 17,237 | 15,492 | 15,417 | 15,318 | 33,286 | 30,922 | |||||||||||||||||||||
Occupancy, Net | 2,540 | 2,345 | 2,503 | 2,373 | 2,491 | 4,885 | 4,853 | |||||||||||||||||||||
Furniture and Equipment | 2,304 | 2,338 | 2,368 | 2,369 | 2,583 | 4,642 | 5,165 | |||||||||||||||||||||
Intangible Amortization | 1,010 | 1,011 | 1,308 | 1,459 | 1,459 | 2,021 | 2,918 | |||||||||||||||||||||
Other | 11,027 | 9,326 | 9,331 | 8,298 | 8,905 | 20,353 | 16,696 | |||||||||||||||||||||
Total Noninterest Expense | 32,930 | 32,257 | 31,002 | 29,916 | 30,756 | 65,187 | 60,554 | |||||||||||||||||||||
OPERATING PROFIT | 373 | 370 | (2,441 | ) | 7,056 | 7,005 | 743 | 17,323 | ||||||||||||||||||||
Provision for Income Taxes | (401 | ) | (280 | ) | (738 | ) | 2,218 | 2,195 | (681 | ) | 5,233 | |||||||||||||||||
NET INCOME | $ | 774 | $ | 650 | $ | (1,703 | ) | $ | 4,838 | $ | 4,810 | $ | 1,424 | $ | 12,090 | |||||||||||||
PER SHARE DATA | ||||||||||||||||||||||||||||
Basic Earnings | $ | 0.04 | $ | 0.04 | $ | (0.10 | ) | $ | 0.29 | $ | 0.28 | $ | 0.08 | $ | 0.70 | |||||||||||||
Diluted Earnings | $ | 0.04 | $ | 0.04 | $ | (0.10 | ) | $ | 0.29 | $ | 0.28 | $ | 0.08 | $ | 0.70 | |||||||||||||
Cash Dividends | 0.190 | 0.190 | 0.190 | 0.185 | 0.185 | 0.380 | 0.370 | |||||||||||||||||||||
AVERAGE SHARES | ||||||||||||||||||||||||||||
Basic | 17,010 | 17,109 | 17,126 | 17,124 | 17,146 | 17,059 | 17,158 | |||||||||||||||||||||
Diluted | 17,010 | 17,131 | 17,135 | 17,128 | 17,147 | 17,060 | 17,159 |
CAPITAL CITY BANK GROUP, INC. | ||||||||||||||||||||
CONSOLIDATED STATEMENT OF FINANCIAL CONDITION | ||||||||||||||||||||
Unaudited | ||||||||||||||||||||
(Dollars in thousands, except per share data) | 2009 Second Quarter | 2009 First Quarter | 2008 Fourth Quarter | 2008 Third Quarter | 2008 Second Quarter | |||||||||||||||
ASSETS | ||||||||||||||||||||
Cash and Due From Banks | $ | 92,394 | $ | 81,317 | $ | 88,143 | $ | 71,062 | $ | 108,672 | ||||||||||
Funds Sold and Interest Bearing Deposits | 2,016 | 4,241 | 6,806 | 27,419 | 192,786 | |||||||||||||||
Total Cash and Cash Equivalents | 94,410 | 85,558 | 94,949 | 98,481 | 301,458 | |||||||||||||||
Investment Securities, Available-for-Sale | 194,002 | 195,767 | 191,569 | 193,978 | 185,971 | |||||||||||||||
Loans, Net of Unearned Interest | ||||||||||||||||||||
Commercial, Financial, & Agricultural | 201,589 | 202,038 | 206,230 | 189,676 | 196,075 | |||||||||||||||
Real Estate - Construction | 153,507 | 154,102 | 141,973 | 148,160 | 150,907 | |||||||||||||||
Real Estate - Commercial | 686,420 | 673,066 | 656,959 | 639,443 | 622,282 | |||||||||||||||
Real Estate - Residential | 447,652 | 464,358 | 468,399 | 473,962 | 481,397 | |||||||||||||||
Real Estate - Home Equity | 235,473 | 223,505 | 218,500 | 212,118 | 205,536 | |||||||||||||||
Consumer | 241,467 | 243,280 | 246,973 | 252,743 | 244,071 | |||||||||||||||
Other Loans | 7,933 | 8,068 | 15,838 | 7,378 | 9,436 | |||||||||||||||
Overdrafts | 3,022 | 3,195 | 2,925 | 3,749 | 7,111 | |||||||||||||||
Total Loans, Net of Unearned Interest | 1,977,063 | 1,971,612 | 1,957,797 | 1,927,229 | 1,916,815 | |||||||||||||||
Allowance for Loan Losses | (41,782 | ) | (40,172 | ) | (37,004 | ) | (30,544 | ) | (22,518 | ) | ||||||||||
Loans, Net | 1,935,281 | 1,931,440 | 1,920,793 | 1,896,685 | 1,894,297 | |||||||||||||||
Premises and Equipment, Net | 109,050 | 107,259 | 106,433 | 104,806 | 102,559 | |||||||||||||||
Intangible Assets | 90,862 | 91,872 | 92,883 | 94,192 | 95,651 | |||||||||||||||
Other Assets | 102,234 | 87,483 | 82,072 | 66,308 | 69,479 | |||||||||||||||
Total Other Assets | 302,146 | 286,614 | 281,388 | 265,306 | 267,689 | |||||||||||||||
Total Assets | $ | 2,525,839 | $ | 2,499,379 | $ | 2,488,699 | $ | 2,454,450 | $ | 2,649,415 | ||||||||||
LIABILITIES | ||||||||||||||||||||
Deposits: | ||||||||||||||||||||
Noninterest Bearing Deposits | $ | 424,125 | $ | 413,608 | $ | 419,696 | $ | 382,878 | $ | 416,992 | ||||||||||
NOW Accounts | 733,526 | 726,069 | 758,976 | 698,509 | 814,380 | |||||||||||||||
Money Market Accounts | 300,683 | 312,541 | 324,646 | 368,453 | 387,011 | |||||||||||||||
Regular Savings Accounts | 123,257 | 121,245 | 115,261 | 116,858 | 118,307 | |||||||||||||||
Certificates of Deposit | 424,339 | 416,326 | 373,595 | 396,086 | 426,236 | |||||||||||||||
Total Deposits | 2,005,930 | 1,989,789 | 1,992,174 | 1,962,784 | 2,162,926 | |||||||||||||||
Short-Term Borrowings | 73,989 | 68,193 | 62,044 | 47,069 | 51,783 | |||||||||||||||
Subordinated Notes Payable | 62,887 | 62,887 | 62,887 | 62,887 | 62,887 | |||||||||||||||
Other Long-Term Borrowings | 52,354 | 53,448 | 51,470 | 53,074 | 36,857 | |||||||||||||||
Other Liabilities | 57,973 | 49,518 | 41,294 | 29,841 | 38,382 | |||||||||||||||
Total Liabilities | 2,253,133 | 2,223,835 | 2,209,869 | 2,155,655 | 2,352,835 | |||||||||||||||
SHAREOWNERS' EQUITY | ||||||||||||||||||||
Common Stock | 170 | 170 | 171 | 171 | 171 | |||||||||||||||
Additional Paid-In Capital | 35,698 | 35,841 | 36,783 | 36,681 | 36,382 | |||||||||||||||
Retained Earnings | 257,828 | 260,287 | 262,890 | 267,853 | 266,171 | |||||||||||||||
Accumulated Other Comprehensive Loss, Net of Tax | (20,990 | ) | (20,754 | ) | (21,014 | ) | (5,910 | ) | (6,144 | ) | ||||||||||
Total Shareowners' Equity | 272,706 | 275,544 | 278,830 | 298,795 | 296,580 | |||||||||||||||
Total Liabilities and Shareowners' Equity | $ | 2,525,839 | $ | 2,499,379 | $ | 2,488,699 | $ | 2,454,450 | $ | 2,649,415 | ||||||||||
OTHER BALANCE SHEET DATA | ||||||||||||||||||||
Earning Assets | $ | 2,173,081 | $ | 2,171,620 | $ | 2,156,172 | $ | 2,148,626 | $ | 2,295,572 | ||||||||||
Intangible Assets | ||||||||||||||||||||
Goodwill | 84,811 | 84,811 | 84,811 | 84,811 | 84,811 | |||||||||||||||
Deposit Base | 5,159 | 6,121 | 7,084 | 8,345 | 9,756 | |||||||||||||||
Other | 892 | 940 | 988 | 1,036 | 1,084 | |||||||||||||||
Interest Bearing Liabilities | 1,771,035 | 1,760,709 | 1,748,879 | 1,742,936 | 1,897,461 | |||||||||||||||
Book Value Per Diluted Share | $ | 16.03 | $ | 16.18 | $ | 16.27 | $ | 17.45 | $ | 17.33 | ||||||||||
Tangible Book Value Per Diluted Share | 10.70 | 10.80 | 10.85 | 11.94 | 11.74 | |||||||||||||||
Actual Basic Shares Outstanding | 17,010 | 17,010 | 17,127 | 17,125 | 17,111 | |||||||||||||||
Actual Diluted Shares Outstanding | 17,010 | 17,031 | 17,136 | 17,129 | 17,112 |
CAPITAL CITY BANK GROUP, INC. | ||||||||||||||||||||
ALLOWANCE FOR LOAN LOSSES | ||||||||||||||||||||
AND NONPERFORMING ASSETS | ||||||||||||||||||||
Unaudited | ||||||||||||||||||||
2009 | 2009 | 2008 | 2008 | 2008 | ||||||||||||||||
(Dollars in thousands) | Second Quarter | First Quarter | Fourth Quarter | Third Quarter | Second Quarter | |||||||||||||||
ALLOWANCE FOR LOAN LOSSES | ||||||||||||||||||||
Balance at Beginning of Period | $ | 40,172 | $ | 37,004 | $ | $ 30,544 | $ | 22,518 | $ | 20,277 | ||||||||||
Provision for Loan Losses | 8,426 | 8,410 | 12,497 | 10,425 | 5,432 | |||||||||||||||
Net Charge-Offs | 6,816 | 5,242 | 6,037 | 2,399 | 3,191 | |||||||||||||||
Balance at End of Period | $ | 41,782 | $ | 40,172 | $ | $ 37,004 | $ | 30,544 | $ | 22,518 | ||||||||||
As a % of Loans | 2.12 | % | 2.04 | % | 1.89 | % | 1.59 | % | 1.18 | % | ||||||||||
As a % of Nonperforming Loans | 33.71 | % | 34.82% | % | 37.52 | % | 48.55 | % | 51.80 | % | ||||||||||
As a % of Nonperforming Assets | 29.09 | % | 31.69% | 34.31 | % | 45.10 | % | 47.12 | % | |||||||||||
CHARGE-OFFS | ||||||||||||||||||||
Commercial, Financial and Agricultural | $ | 388 | $ | 857 | $ | 331 | $ | 275 | $ | 407 | ||||||||||
Real Estate - Construction | 3,356 | 320 | 1,774 | 77 | 158 | |||||||||||||||
Real Estate - Commercial | 123 | 1,002 | 293 | (35) | 1,115 | |||||||||||||||
Real Estate - Residential | 2,379 | 1,975 | 2,264 | 797 | 817 | |||||||||||||||
Consumer | 1,145 | 2,117 | 1,993 | 1,797 | 1,232 | |||||||||||||||
Total Charge-Offs | $ | 7,391 | $ | 6,271 | $ | 6,655 | $ | 2,911 | $ | 3,729 | ||||||||||
RECOVERIES | ||||||||||||||||||||
Commercial, Financial and Agricultural | $ | 84 | $ | 74 | $ | 68 | $ | 68 | $ | 55 | ||||||||||
Real Estate - Construction | - | 385 | - | 4 | - | |||||||||||||||
Real Estate - Commercial | 1 | - | - | 1 | 13 | |||||||||||||||
Real Estate - Residential | 51 | 58 | 128 | 6 | 24 | |||||||||||||||
Consumer | 439 | 512 | 422 | 433 | 446 | |||||||||||||||
Total Recoveries | $ | 575 | $ | 1,029 | $ | 618 | $ | 512 | $ | 538 | ||||||||||
NET CHARGE-OFFS | $ | 6,816 | $ | 5,242 | $ | 6,037 | $ | 2,399 | $ | 3,191 | ||||||||||
�� | ||||||||||||||||||||
Net Charge-Offs as a % of Average Loans(1) | 1.39 | % | 1.08 | % | 1.24 | % | 0.50 | % | 0.67 | % | ||||||||||
RISK ELEMENT ASSETS | ||||||||||||||||||||
Nonaccruing Loans | $ | 111,039 | $ | 110,200 | $ | 96,876 | $ | 61,509 | $ | 41,738 | ||||||||||
Restructured Loans | 12,916 | 5,157 | 1,744 | 1,403 | 1,733 | |||||||||||||||
Total Nonperforming Loans | 123,955 | 115,357 | 98,620 | 62,912 | 43,471 | |||||||||||||||
Other Real Estate | 19,671 | 11,425 | 9,222 | 4,813 | 4,322 | |||||||||||||||
Total Nonperforming Assets | $ | 143,626 | $ | 126,782 | $ | 107,842 | $ | 67,725 | $ | 47,793 | ||||||||||
Past Due Loans 90 Days or More | $ | - | $ | - | $ | 88 | $ | 50 | $ | 896 | ||||||||||
Nonperforming Loans as a % of Loans | 6.27 | % | 5.85 | % | 5.04 | % | 3.26 | % | 2.27 | % | ||||||||||
Nonperforming Assets as a % of | ||||||||||||||||||||
Loans and Other Real Estate | 7.19 | % | 6.39 | % | 5.48 | % | 3.51% | % | 2.49 | % | ||||||||||
Nonperforming Assets as a % of Capital(2) | 45.67 | % | 40.16 | % | 34.15 | % | 20.56 | % | 14.98 | % | ||||||||||
(1) Annualized | ||||||||||||||||||||
(2) Capital includes allowance for loan losses. |
AVERAGE BALANCE AND INTEREST RATES(1) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Unaudited | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Second Quarter 2009 | First Quarter 2009 | Fourth Quarter 2008 | Third Quarter 2008 | Second Quarter 2008 | June 2009 YTD | June 2008 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 | $ | 1,974,197 | 29,954 | 6.09 | % | $ | 1,964,086 | 29,724 | 6.14 | % | $ | 1,940,083 | 31,772 | 6.52 | % | $ | 1,915,008 | 32,622 | 6.78 | % | $ | 1,908,802 | 33,610 | 7.08 | % | $ | 1,969,169 | 59,678 | 6.11 | % | $ | 1,909,187 | 69,063 | 7.27 | % | |||||||||||||||||||||||||||||||||||||||||||||||||
Investment Securities | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Taxable Investment Securities | 89,574 | 742 | 3.31 | % | 90,927 | 776 | 3.43 | % | 90,296 | 813 | 3.59 | % | 93,723 | 940 | 3.99 | % | 93,814 | 1,028 | 4.38 | % | 90,248 | 1,518 | 3.37 | % | 94,300 | 2,136 | 4.52 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Tax-Exempt Investment Securities | 106,869 | 1,067 | 4.00 | % | 101,108 | 1,133 | 4.48 | % | 103,817 | 1,252 | 4.82 | % | 98,966 | 1,234 | 4.99 | % | 94,371 | 1,200 | 5.09 | % | 104,005 | 2,200 | 4.23 | % | 92,581 | 2,407 | 5.20 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total Investment Securities | 196,443 | 1,809 | 3.68 | % | 192,035 | 1,909 | 3.98 | % | 194,113 | 2,065 | 4.25 | % | 192,689 | 2,174 | 4.50 | % | 188,185 | 2,228 | 4.73 | % | 194,253 | 3,718 | 3.83 | % | 186,881 | 4,543 | 4.86 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Funds Sold | 4,641 | 1 | 0.10 | % | 10,116 | 3 | 0.13 | % | 16,645 | 32 | 0.74 | % | 99,973 | 475 | 1.86 | % | 206,984 | 1,028 | 1.96 | % | 7,363 | 4 | 0.12 | % | 206,649 | 2,602 | 2.49 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total Earning Assets | 2,175,281 | $ | 31,764 | 5.86 | % | 2,166,237 | $ | 31,636 | 5.92 | % | 2,150,841 | $ | 33,869 | 6.27 | % | 2,207,670 | $ | 35,271 | 6.36 | % | 2,303,971 | $ | 36,866 | 6.43 | % | 2,170,785 | $ | 63,400 | 5.89 | % | 2,302,717 | $ | 76,208 | 6.65 | % | |||||||||||||||||||||||||||||||||||||||||||||||||
Cash and Due From Banks | 81,368 | 76,826 | 76,027 | 77,309 | 82,182 | 79,109 | 88,214 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Allowance for Loan Losses | (41,978 | ) | (38,007 | ) | (30,347 | ) | (22,851 | ) | (20,558 | ) | (40,003 | ) | (19,392 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other Assets | 291,681 | 281,869 | 266,797 | 266,510 | 269,176 | 286,801 | 269,083 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total Assets | $ | 2,506,352 | $ | 2,486,925 | $ | 2,463,318 | $ | 2,528,638 | $ | 2,634,771 | $ | 2,496,692 | $ | 2,640,622 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
LIABILITIES: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Interest Bearing Deposits | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
NOW Accounts | $ | 709,039 | $ | 249 | 0.14 | % | $ | 719,265 | $ | 225 | 0.13 | % | $ | 684,246 | $ | 636 | 0.37 | % | $ | 727,754 | $ | 1,443 | 0.79 | % | $ | 788,237 | $ | 1,935 | 0.99 | % | $ | 714,123 | $ | 474 | 0.13 | % | $ | 781,064 | $ | 5,375 | 1.38 | % | ||||||||||||||||||||||||||||||||||||||||||
Money Market Accounts | 298,007 | 192 | 0.26 | % | 321,562 | 190 | 0.24 | % | 360,940 | 716 | 0.79 | % | 369,544 | 1,118 | 1.20 | % | 376,996 | 1,210 | 1.29 | % | 309,719 | 382 | 0.25 | % | 383,412 | 3,408 | 1.79 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Savings Accounts | 123,034 | 15 | 0.05 | % | 118,142 | 14 | 0.05 | % | 117,311 | 28 | 0.09 | % | 117,970 | 30 | 0.10 | % | 117,182 | 29 | 0.10 | % | 120,601 | 29 | 0.05 | % | 115,172 | 63 | 0.11 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Time Deposits | 417,545 | 2,044 | 1.96 | % | 392,006 | 2,066 | 2.14 | % | 379,266 | 2,468 | 2.59 | % | 410,101 | 3,224 | 3.13 | % | 443,006 | 3,988 | 3.62 | % | 404,847 | 4,110 | 2.05 | % | 455,143 | 8,797 | 3.89 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total Interest Bearing Deposits | 1,547,625 | 2,500 | 0.65 | % | 1,550,975 | 2,495 | 0.65 | % | 1,541,763 | 3,848 | 0.99 | % | 1,625,369 | 5,815 | 1.42 | % | 1,725,421 | 7,162 | 1.67 | % | 1,549,290 | 4,995 | 0.65 | % | 1,734,791 | 17,643 | 2.05 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Short-Term Borrowings | 87,768 | 88 | 0.40 | % | 85,318 | 68 | 0.32 | % | 69,079 | 110 | 0.62 | % | 51,738 | 230 | 1.76 | % | 55,830 | 296 | 2.13 | % | 86,550 | 156 | 0.36 | % | 61,963 | 817 | 2.64 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Subordinated Notes Payable | 62,887 | 931 | 5.86 | % | 62,887 | 927 | 5.89 | % | 62,887 | 937 | 5.83 | % | 62,887 | 936 | 5.83 | % | 62,887 | 931 | 5.86 | % | 62,887 | 1,858 | 5.88 | % | 62,887 | 1,862 | 5.86 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other Long-Term Borrowings | 52,775 | 566 | 4.30 | % | 53,221 | 568 | 4.33 | % | 53,261 | 587 | 4.39 | % | 43,237 | 488 | 4.48 | % | 34,612 | 396 | 4.60 | % | 52,997 | 1,134 | 4.31 | % | 31,128 | 727 | 4.70 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total Interest Bearing Liabilities | 1,751,055 | $ | 4,085 | 0.94 | % | 1,752,401 | $ | 4,058 | 0.94 | % | 1,726,990 | $ | 5,482 | 1.26 | % | 1,783,231 | $ | 7,469 | 1.67 | % | 1,878,750 | $ | 8,785 | 1.88 | % | 1,751,724 | $ | 8,143 | 0.94 | % | 1,890,769 | $ | 21,049 | 2.24 | % | |||||||||||||||||||||||||||||||||||||||||||||||||
Noninterest Bearing Deposits | 423,566 | 406,380 | 404,103 | 405,314 | 415,125 | 415,020 | 409,918 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other Liabilities | 54,617 | 46,510 | 29,998 | 36,498 | 40,006 | 50,586 | 41,088 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total Liabilities | 2,229,238 | 2,205,291 | 2,161,091 | 2,225,043 | 2,333,881 | 2,217,330 | 2,341,775 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
SHAREOWNERS' EQUITY: | $ | 277,114 | $ | 281,634 | $ | 302,227 | $ | 303,595 | $ | 300,890 | $ | 279,362 | $ | 298,847 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total Liabilities and Shareowners' Equity | $ | 2,506,352 | $ | 2,486,925 | $ | 2,463,318 | $ | 2,528,638 | $ | 2,634,771 | $ | 2,496,692 | $ | 2,640,622 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Interest Rate Spread | $ | 27,679 | 4.92 | % | $ | 27,578 | 4.98 | % | $ | 28,387 | 5.01 | % | $ | 27,802 | 4.69 | % | $ | 28,081 | 4.55 | % | $ | 55,257 | 4.95 | % | $ | 55,159 | 4.41 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Interest Income and Rate Earned(1) | $ | 31,764 | 5.86 | % | $ | 31,636 | 5.92 | % | $ | 33,869 | 6.27 | % | $ | 35,271 | 6.36 | % | $ | 36,866 | 6.43 | % | $ | 63,400 | 5.89 | % | $ | 76,208 | 6.65 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Interest Expense and Rate Paid(2) | 4,085 | 0.75 | % | 4,058 | 0.76 | % | 5,482 | 1.01 | % | 7,469 | 1.35 | % | 8,785 | 1.53 | % | 8,143 | 0.76 | % | 21,049 | 1.84 | % | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net Interest Margin | $ | 27,679 | 5.11 | % | $ | 27,578 | 5.16 | % | $ | 28,387 | 5.26 | % | $ | 27,802 | 5.01 | % | $ | 28,081 | 4.90 | % | $ | 55,257 | 5.13 | % | $ | 55,159 | 4.81 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(1) Interest and average rates are calculated on a tax-equivalent basis using the 35% Federal tax rate. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(2) Rate calculated based on average earning assets. |