Capital City Bank Group, Inc.
Reports Third Quarter 2009 Results
TALLAHASSEE, Fla. (October 20, 2009) – Capital City Bank Group, Inc. (NASDAQ: CCBG) today reported a net loss of $1.5 million ($0.08 per diluted share) for the third quarter of 2009 compared to net income of $0.8 million ($0.04 per diluted share) for the second quarter of 2009 and $4.8 million ($0.29 per diluted share) for the third quarter of 2008. We reported a net loss of $0.1 million ($0.00 per diluted share) for the first nine months of 2009, compared to net income of $16.9 million ($0.99 per diluted share) for the same period of 2008.
The loss reported for the third quarter of 2009 reflects a loan loss provision of $12.3 million ($0.45 per diluted share) versus $8.4 million ($0.30 per diluted share) in the second quarter of 2009 and $10.4 million ($0.37 per diluted share) in the third quarter of 2008. Earnings for the third quarter of 2008 also included a $6.25 million gain ($0.22 per diluted share) from the sale of a portion of the bank’s merchant services portfolio.
Year-to-date 2009 performance reflects a loan loss provision of $29.2 million ($1.05 per diluted share) and a special FDIC assessment of approximately $1.2 million ($0.04 per diluted share) recorded in the second quarter. Year-to-date earnings for 2008 reflect a loan loss provision of $20.0 million ($0.72 per diluted share), a $6.25 million gain ($0.22 per diluted share) from the sale of the bank’s merchant services portfolio, and Visa related transactions totaling $3.5 million pre-tax ($0.13 per diluted share).
“In a continuing tough economic environment we have been effectively managing problem assets and moving many of them through the resolution phases. Of equal priority is maintaining our focus on growing the business, as evidenced by strong growth in the commercial mortgage and home equity portfolios and continuing increases in core deposits, all coming as a result of our consistent execution of relationship-based community banking,” said William G. Smith, Jr., Chairman, President and Chief Executive Officer.
“We again set aside a substantial loan loss provision during the third quarter, which was clearly the main factor impacting our financial performance. The movement of a significant number of problem assets from the loan portfolio into the other real estate owned category indicates encouraging progress as we continue to move toward resolution and ultimate disposal of nonaccrual loans. Nonaccrual loans totaled $91.9 million at the end of the third quarter, a net decrease of $19.2 million from the prior linked quarter, reflective of a further slowdown in gross additions to non-accruing status and an increase in the migration of nonaccrual loans to the other real estate category, or to satisfactory restructuring.”
“On the growth side of the business, we continue to capitalize and build on the key underlying value of our franchise with successful deposit-gathering. While public funds declined seasonally, as expected, we have enjoyed good core deposit growth in 2009 and our absolutely free checking products continue to be successful as both balances and the number of accounts consistently are growing quarter over quarter. Certificates of deposit balances are up as rate pressures from higher paying institutions have eased in most of our markets. The growth in money market accounts compared to the linked quarter reflects a successful test of a deposit promotion in our Macon, GA market, which we plan to expand during the fourth quarter to other markets,” said Smith.
The Return on Average Assets was -0.24% and the Return on Average Equity was - -2.15% for the third quarter of 2009. These metrics were 0.12% and 1.12% for the second quarter of 2009 and 0.76% and 6.43% for the third quarter of 2008, respectively.
For the first nine months of 2009, the Return on Average Assets was 0.00% and the Return on Average Equity was -0.03% compared to 0.87% and 7.53%, respectively, for the same period of 2008.
Discussion of Financial Condition
Average earning assets were $2.157 billion for the third quarter of 2009, a decrease of $17.9 million, or 0.8% from the second quarter of 2009, and an increase of $6.5 million, or 0.3% from the fourth quarter of 2008. The decrease from the second quarter is primarily attributable to a $7.4 million and $9.2 million decrease in the investment and loan portfolios, respectively. 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 investment securities and short-term investments. The current quarter decrease in the loan portfolio was offset by an increase in other real estate owned as we continue to move forward with the resolution of nonaccrual loans. The loan portfolio would have experienced a slight increase when compared to the prior quarter when adjusting for the nonaccrual loans transferred to other real estate owned, representing the fifth consecutive quarter of growth in the core loan portfolio. Loan growth remains strong in the commercial mortgage and home equity portfolios. Growth in these portfolios continued due to the efforts of our bankers to reach clients who are interested in moving or expanding their banking relationships.
At the end of the third quarter, nonperforming assets (including nonaccrual loans, restructured loans, and other real estate owned) totaled $144.4 million, a net increase of $.7 million, or 1% from the second quarter and $36.5 million, or 34% from the fourth quarter of 2008. Nonaccrual loans totaled $91.9 million at the end of the third quarter, a net decrease of $19.2 million from the prior linked quarter and $5.0 million from year-end 2008, reflective of a further slowdown in gross additions to non-accruing status and an increase in the migration of nonaccrual loans to the other real estate owned category. Quarter over quarter, other real estate owned properties increased $13.7 million and restructured loans increased by $6.2 million. Nonperforming assets represented 7.25% of loans and other real estate at the end of the third quarter compared to 7.19% at the prior quarter-end and 5.48% at year-end 2008.
Average total deposits were $1.950 billion for the third quarter, a decrease of $21.0 million, or 1.1%, from the second quarter and an increase of $4.3 million, or 0.2%, from the fourth quarter of 2008. On a linked quarter basis, the decrease in deposits reflects a decline in public funds attributable to seasonal run-off and the decision not to match competitors’ rates. Core deposits continued to grow during the quarter and partially offset the public funds decline. The core deposit growth occurred primarily in the money market accounts and certificates of deposit. Additionally, 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. The growth in money market accounts compared to the linked quarter reflects a successful test of a deposit promotion in our Macon market, which we plan to expand during the fourth quarter to other 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 declined during the first half of 2009, but experienced a partial offset in the third quarter as balances have increased slightly as discussed above. 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 $53.5 million during the third quarter of 2009 compared to an average net overnight funds purchased position of $49.8 million in the second quarter and an average overnight funds purchased position of $3.2 million at year-end 2008. The unfavorable variance in funds purchased position compared to the linked quarter is attributable to a decrease in deposits partially offset by a slight reduction in the loan and investment portfolios. The unfavorable variance from the fourth quarter of 2008 reflects growth in the loan portfolio, partially offset by growth in deposits and a decline in investment securities.
Equity capital was $268.4 million as of September 30, 2009, compared to $272.7 million as of June 30, 2009 and $278.8 million as of December 31, 2008. Our leverage ratio was 10.96%, 11.07%, and 11.51%, respectively, for the comparable periods. Further, our risk-adjusted capital ratio of 14.12% at September 30, 2009 exceeds the 8.0% minimum requirement and the 10% threshold to be designated as “well-capitalized” under the risk-based regulatory guidelines. At September 30, 2009, our tangible common equity ratio was 7.43%, compared to 7.47% at June 30, 2009 and 7.76% at December 31, 2008. 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 and third quarters.
Discussion of Operating Results
Tax equivalent net interest income for the third quarter of 2009 was $27.1 million compared to $27.7 million for the second quarter of 2009 and $27.8 million for the third quarter of 2008. For the first nine months of 2009, tax equivalent net interest income totaled $82.4 million compared to $83.0 million in 2008.
The decrease in the net interest income on a linked quarter basis was partially due to the downward repricing of earning assets and a slight (3 basis points) increase in the costs of funds. One additional calendar day in the third quarter and a lower level of foregone interest on nonaccrual loans helped to offset the decline. The loan portfolio balance declined during the quarter and also continued to reprice lower without the offsetting benefit in funding costs. Compared to the linked quarter, the costs of funds increased primarily in interest bearing non-maturity deposits, reflecting a money market promotion launched during the third quarter.
The decline from the third 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 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 4.99% declined 12 basis points over the linked quarter, attributable to lower earning asset yields and a higher cost of funds. As compared to the third quarter of 2008, the margin experienced a decline of two basis points reflecting compression in earning asset yields, partially offset by aggressive deposit repricing.
The slight decrease in net interest income for the first nine months of 2009 as compared to the same period in 2008 resulted from lower earning assets yields, higher foregone interest and lower loan fees, partially offset by the lower cost of funds.
The provision for loan losses for the third quarter was $12.3 million compared to $8.4 million for the second quarter of 2009 and $10.4 million for the third quarter of 2008. The higher loan loss provision compared to the prior quarter was driven by an increase in impaired loan reserves for newly identified impaired loans, and to a lesser extent devaluation in real estate collateral securing impaired loans, primarily related to land development. Year-to-date, our loan loss provision was $29.2 million compared to $20.0 million for the same period of 2008 with the increase generally reflecting weakened economic conditions and real estate market stress, including declining property values, primarily vacant land. Net charge-offs in the third quarter totaled $8.7 million (1.76% of average loans) compared to $6.8 million (1.39% of average loans) in the second quarter of 2009 and $2.4 million (.50% of average loans) in the third quarter of 2008. For the nine-month period of 2009, our net charge-offs totaled $20.8 million (1.41% of average loans), compared to $7.5 million (.53% of average loans) for the same period in 2008. At quarter-end, the allowance for loan losses was 2.32% of outstanding loans (net of overdrafts) and provided coverage of 41% of nonperforming loans.
Noninterest income for the third quarter of 2009 totaled $14.3 million compared to $14.6 million in the second quarter of 2009 and $20.2 million for the third quarter of 2008. Compared to the linked quarter, the $0.3 million, or 2.3%, decline was due to lower mortgage banking fees ($239,000) and merchant fees ($270,000). The decline in mortgage banking fees is attributable to a decline in our residential real estate loan pipeline which spiked mid-year due to a pick-up in refinancing activity. The lower level of merchant fees reflects a seasonal decline in processing volume for the sole remaining merchant in our merchant services portfolio. Partially offsetting the aforementioned unfavorable variances was higher retail brokerage fees ($141,000) driven by an increase in account activity. Compared to the prior year quarter, the $5.9 million, or 29.2%, decline primarily reflects a one-time $6.25 million pre-tax gain from a sale of a portion of the bank’s merchant services portfolio in 2008. For the first nine months of 2009, as compared to same period of 2008, noninterest income decreased $10.7 million, or 20.0%, due to the one-time $6.25 million pre-tax gain from the bank’s merchant services portfolio sale, a $2.4 million pre-tax gain from the redemption of Visa shares realized in the first quarter of 2008, and an unfavorable variance in merchant fees of $2.9 million related to the aforementioned merchant services portfolio sale.
Noninterest expense totaled $31.6 million for the third quarter of 2009 compared to $32.9 million in the second quarter of 2009 and $29.9 million for the third quarter of 2008. Compared to the linked quarter, the $1.3 million, or 4.0%, favorable variance was due to lower compensation expense ($389,000) and FDIC insurance premium expense ($1.2 million). The lower compensation expense was due to lower pension expense and the lower FDIC insurance expense reflects the impact of the $1.2 million special assessment recorded in the second quarter. These favorable variances were partially offset by a higher level of other real estate owned expense ($300,000) and legal fees ($221,000), both attributable to increased collection and foreclosure activity. Compared to prior year quarter, the $1.7 million, or 5.7%, increase primarily reflects an increase in other real estate owned expense ($1.0 million) and legal expense ($517,000) also attributable to the increase in collection and foreclosure activity. For the first nine months of 2009, as compared to the same period of 2008, noninterest expense increased $6.3 million, or 7.0%, due to higher other real estate owned expense ($2.9 million), legal expense ($1.2 million), pension expense ($2.2 million), and FDIC insurance premium expense ($3.4 million), partially offset by lower expense for merchant fees ($2.5 million), intangible amortization ($1.3 million), and furniture/fixtures depreciation and maintenance ($632,000). The unfavorable variance was also impacted by the reversal of a portion ($1.1 million) of our Visa litigation accrual in the first quarter of 2008, which had the effect of reducing noninterest expense.
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 69 banking offices and 79 ATMs in Florida, Georgia and Alabama. For more information about Capital City Bank Group, Inc., visit www.ccbg.com.
FORWARD-LOOKING STATEMENTS
Forward-looking statements in this Press Release are based on current plans and expectations that are subject to uncertainties and risks, which could cause 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 | | | Nine Months Ended | |
| (Dollars in thousands, except per share data) | | Sep 30, 2009 | | | Jun 30, 2009 | | | Sep 30, 2008 | | | Sep 30, 2009 | | | Sep 30, 2008 | |
| EARNINGS | | | | | | | | | | | | | | | |
| Net Income | | $ | -1,488 | | | $ | 774 | | | $ | 4,838 | | | $ | -64 | | | $ | 16,928 | |
| Diluted Earnings Per Common Share | | $ | -0.08 | | | $ | 0.04 | | | $ | 0.29 | | | $ | 0.00 | | | $ | 0.99 | |
| PERFORMANCE | | | | | | | | | | | | | | | | | | | | |
| Return on Average Equity | | | -2.15 | % | | | 1.12 | % | | | 6.34 | % | | | -0.03 | % | | | 7.53 | % |
| Return on Average Assets | | | -0.24 | % | | | 0.12 | % | | | 0.76 | % | | | 0.00 | % | | | 0.87 | % |
| Net Interest Margin | | | 4.99 | % | | | 5.11 | % | | | 5.01 | % | | | 5.09 | % | | | 4.87 | % |
| Noninterest Income as % of Operating Revenue | | | 35.01 | % | | | 35.07 | % | | | 42.64 | % | | | 34.75 | % | | | 39.84 | % |
| Efficiency Ratio | | | 73.86 | % | | | 75.44 | % | | | 59.27 | % | | | 74.82 | % | | | 62.98 | % |
| CAPITAL ADEQUACY | | | | | | | | | | | | | | | | | | | | |
| Tier 1 Capital Ratio | | | 12.76 | % | | | 12.85 | % | | | 13.54 | % | | | 12.76 | % | | | 13.54 | % |
| Total Capital Ratio | | | 14.12 | % | | | 14.20 | % | | | 15.15 | % | | | 14.12 | % | | | 15.15 | % |
| Tangible Capital Ratio | | | 7.43 | % | | | 7.47 | % | | | 8.67 | % | | | 7.43 | % | | | 8.67 | % |
| Leverage Ratio | | | 10.96 | % | | | 11.07 | % | | | 11.21 | % | | | 10.96 | % | | | 11.21 | % |
| Equity to Assets | | | 10.77 | % | | | 10.80 | % | | | 12.17 | % | | | 10.77 | % | | | 12.17 | % |
| ASSET QUALITY | | | | | | | | | | | | | | | | | | | | |
| Allowance as % of Non-Performing Loans | | | 40.90 | % | | | 33.71 | % | | | 48.55 | % | | | 40.90 | % | | | 48.55 | % |
| Allowance as a % of Loans | | | 2.32 | % | | | 2.12 | % | | | 1.59 | % | | | 2.32 | % | | | 1.59 | % |
| Net Charge-Offs as % of Average Loans | | | 1.76 | % | | | 1.39 | % | | | 0.50 | % | | | 1.41 | % | | | 0.53 | % |
| Nonperforming Assets as % of Loans and ORE | | | 7.25 | % | | | 7.19 | % | | | 3.51 | % | | | 7.25 | % | | | 3.51 | % |
| STOCK PERFORMANCE | | | | | | | | | | | | | | | | | | | | |
| High | | $ | 17.10 | | | $ | 17.35 | | | $ | 34.50 | | | $ | 27.31 | | | $ | 34.50 | |
| Low | | $ | 13.92 | | | $ | 11.01 | | | $ | 19.20 | | | $ | 9.50 | | | $ | 19.20 | |
| Close | | $ | 14.20 | | | $ | 16.85 | | | $ | 31.35 | | | $ | 14.20 | | | $ | 31.35 | |
| Average Daily Trading Volume | | | 33,823 | | | | 40,130 | | | | 45,717 | | | | 44,127 | | | | 37,902 | |
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| CAPITAL CITY BANK GROUP, INC. | | | | | | | | | | | | | | | | | | | |
| CONSOLIDATED STATEMENT OF INCOME | | | | | | | | | | | | | | | | | | | |
| Unaudited | | | | | | | | | | | | | | | | | | | | | |
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| | | | | | | | | | | | | | | | | | Nine Months Ended | |
| | | | | | | | | | | | | | | | | | September 30 | |
| (Dollars in thousands, except per share data) | | 2009 Third Quarter | | | 2009 Second Quarter | | | 2009 First Quarter | | | 2008 Fourth Quarter | | | 2008 Third Quarter | | | 2009 | | | 2008 | |
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| INTEREST INCOME | | | | | | | | | | | | | | | | | | | | | |
| Interest and Fees on Loans | | $ | 29,463 | | | $ | 29,742 | | | $ | 29,537 | | | $ | 31,570 | | | $ | 32,435 | | | $ | 88,742 | | | $ | 101,112 | |
| Investment Securities | | | 1,323 | | | | 1,437 | | | | 1,513 | | | | 1,627 | | | | 1,744 | | | | 4,273 | | | | 5,447 | |
| Funds Sold | | | 1 | | | | 1 | | | | 3 | | | | 32 | | | | 475 | | | | 5 | | | | 3,078 | |
| Total Interest Income | | | 30,787 | | | | 31,180 | | | | 31,053 | | | | 33,229 | | | | 34,654 | | | | 93,020 | | | | 109,637 | |
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| INTEREST EXPENSE | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Deposits | | | 2,626 | | | | 2,500 | | | | 2,495 | | | | 3,848 | | | | 5,815 | | | | 7,621 | | | | 23,458 | |
| Short-Term Borrowings | | | 113 | | | | 88 | | | | 68 | | | | 110 | | | | 230 | | | | 269 | | | | 1,047 | |
| Subordinated Notes Payable | | | 936 | | | | 931 | | | | 927 | | | | 937 | | | | 936 | | | | 2,794 | | | | 2,798 | |
| Other Long-Term Borrowings | | | 560 | | | | 566 | | | | 568 | | | | 587 | | | | 488 | | | | 1,694 | | | | 1,215 | |
| Total Interest Expense | | | 4,235 | | | | 4,085 | | | | 4,058 | | | | 5,482 | | | | 7,469 | | | | 12,378 | | | | 28,518 | |
| Net Interest Income | | | 26,552 | | | | 27,095 | | | | 26,995 | | | | 27,747 | | | | 27,185 | | | | 80,642 | | | | 81,119 | |
| Provision for Loan Losses | | | 12,347 | | | | 8,426 | | | | 8,410 | | | | 12,497 | | | | 10,425 | | | | 29,183 | | | | 19,999 | |
| Net Interest Income after Provision for Loan Losses | | | 14,205 | | | | 18,669 | | | | 18,585 | | | | 15,250 | | | | 16,760 | | | | 51,459 | | | | 61,120 | |
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| NONINTEREST INCOME | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Service Charges on Deposit Accounts | | | 7,099 | | | | 7,162 | | | | 6,698 | | | | 6,807 | | | | 7,110 | | | | 20,959 | | | | 20,935 | |
| Data Processing Fees | | | 914 | | | | 896 | | | | 870 | | | | 937 | | | | 873 | | | | 2,680 | | | | 2,498 | |
| Asset Management Fees | | | 960 | | | | 930 | | | | 970 | | | | 935 | | | | 1,025 | | | | 2,860 | | | | 3,300 | |
| Retail Brokerage Fees | | | 765 | | | | 625 | | | | 493 | | | | 630 | | | | 565 | | | | 1,883 | | | | 1,769 | |
| Gain on Sale of Investment Securities | | | 4 | | | | 6 | | | | - | | | | 3 | | | | 27 | | | | 10 | | | | 122 | |
| Mortgage Banking Revenues | | | 663 | | | | 902 | | | | 584 | | | | 292 | | | | 331 | | | | 2,149 | | | | 1,331 | |
| Merchant Fees | | | 393 | | | | 663 | | | | 958 | | | | 650 | | | | 616 | | | | 2,014 | | | | 4,898 | |
| Interchange Fees | | | 1,129 | | | | 1,118 | | | | 1,056 | | | | 1,007 | | | | 1,073 | | | | 3,303 | | | | 3,158 | |
| Gain on Sale of Portion of Merchant Services Portfolio | | | - | | | | - | | | | - | | | | - | | | | 6,250 | | | | - | | | | 6,250 | |
| ATM/Debit Card Fees | | | 876 | | | | 884 | | | | 863 | | | | 744 | | | | 742 | | | | 2,623 | | | | 2,244 | |
| Other | | | 1,501 | | | | 1,448 | | | | 1,550 | | | | 1,306 | | | | 1,600 | | | | 4,499 | | | | 7,224 | |
| Total Noninterest Income | | | 14,304 | | | | 14,634 | | | | 14,042 | | | | 13,311 | | | | 20,212 | | | | 42,980 | | | | 53,729 | |
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| NONINTEREST EXPENSE | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Salaries and Associate Benefits | | | 15,660 | | | | 16,049 | | | | 17,237 | | | | 15,492 | | | | 15,417 | | | | 48,946 | | | | 46,339 | |
| Occupancy, Net | | | 2,455 | | | | 2,540 | | | | 2,345 | | | | 2,503 | | | | 2,373 | | | | 7,340 | | | | 7,226 | |
| Furniture and Equipment | | | 2,193 | | | | 2,304 | | | | 2,338 | | | | 2,368 | | | | 2,369 | | | | 6,835 | | | | 7,534 | |
| Intangible Amortization | | | 1,011 | | | | 1,010 | | | | 1,011 | | | | 1,308 | | | | 1,459 | | | | 3,032 | | | | 4,377 | |
| Other | | | 10,296 | | | | 11,027 | | | | 9,326 | | | | 9,331 | | | | 8,298 | | | | 30,649 | | | | 24,994 | |
| Total Noninterest Expense | | | 31,615 | | | | 32,930 | | | | 32,257 | | | | 31,002 | | | | 29,916 | | | | 96,802 | | | | 90,470 | |
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| OPERATING PROFIT | | | (3,106 | ) | | | 373 | | | | 370 | | | | (2,441 | ) | | | 7,056 | | | | (2,363 | ) | | | 24,379 | |
| Provision for Income Taxes | | | (1,618 | ) | | | (401 | ) | | | (280 | ) | | | (738 | ) | | | 2,218 | | | | (2,299 | ) | | | 7,451 | |
| NET INCOME | | $ | (1,488 | ) | | $ | 774 | | | $ | 650 | | | $ | (1,703 | ) | | $ | 4,838 | | | $ | (64 | ) | | $ | 16,928 | |
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| PER SHARE DATA | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Basic Earnings | | $ | (0.08 | ) | | $ | 0.04 | | | $ | 0.04 | | | $ | (0.10 | ) | | $ | 0.29 | | | $ | (0.00 | ) | | $ | 0.99 | |
| Diluted Earnings | | $ | (0.08 | ) | | $ | 0.04 | | | $ | 0.04 | | | $ | (0.10 | ) | | $ | 0.29 | | | $ | (0.00 | ) | | $ | 0.99 | |
| Cash Dividends | | | 0.190 | | | | 0.190 | | | | 0.190 | | | | 0.190 | | | | 0.185 | | | | 0.570 | | | | 0.555 | |
| AVERAGE SHARES | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Basic | | | 17,024 | | | | 17,010 | | | | 17,109 | | | | 17,126 | | | | 17,124 | | | | 17,047 | | | | 17,147 | |
| Diluted | | | 17,025 | | | | 17,010 | | | | 17,131 | | | | 17,135 | | | | 17,128 | | | | 17,048 | | | | 17,149 | |
| CAPITAL CITY BANK GROUP, INC. | | | | | | | | | | | | | | | |
| CONSOLIDATED STATEMENT OF FINANCIAL CONDITION | | | | | | | | | | | | | |
| Unaudited | | | | | | | | | | | | | | | |
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| (Dollars in thousands, except per share data) | | 2009 Third Quarter | | | 2009 Second Quarter | | | 2009 First Quarter | | | 2008 Fourth Quarter | | | 2008 Third Quarter | |
| | | | | | | | | | | | | | | | |
| ASSETS | | | | | | | | | | | | | | | |
| Cash and Due From Banks | | $ | 79,275 | | | $ | 92,394 | | | $ | 81,317 | | | $ | 88,143 | | | $ | 71,062 | |
| Funds Sold and Interest Bearing Deposits | | | 828 | | | | 2,016 | | | | 4,241 | | | | 6,806 | | | | 27,419 | |
| Total Cash and Cash Equivalents | | | 80,103 | | | | 94,410 | | | | 85,558 | | | | 94,949 | | | | 98,481 | |
| | | | | | | | | | | | | | | | | | | | | |
| Investment Securities, Available-for-Sale | | | 183,944 | | | | 194,002 | | | | 195,767 | | | | 191,569 | | | | 193,978 | |
| | | | | | | | | | | | | | | | | | | | | |
| Loans, Net of Unearned Interest | | | | | | | | | | | | | | | | | | | | |
| Commercial, Financial, & Agricultural | | | 203,813 | | | | 201,589 | | | | 202,038 | | | | 206,230 | | | | 189,676 | |
| Real Estate - Construction | | | 128,476 | | | | 153,507 | | | | 154,102 | | | | 141,973 | | | | 148,160 | |
| Real Estate - Commercial | | | 704,595 | | | | 686,420 | | | | 673,066 | | | | 656,959 | | | | 639,443 | |
| Real Estate - Residential | | | 424,715 | | | | 447,652 | | | | 464,358 | | | | 468,399 | | | | 473,962 | |
| Real Estate - Home Equity | | | 243,808 | | | | 235,473 | | | | 223,505 | | | | 218,500 | | | | 212,118 | |
| Consumer | | | 241,672 | | | | 241,467 | | | | 243,280 | | | | 246,973 | | | | 252,743 | |
| Other Loans | | | 7,790 | | | | 7,933 | | | | 8,068 | | | | 15,838 | | | | 7,378 | |
| Overdrafts | | | 3,163 | | | | 3,022 | | | | 3,195 | | | | 2,925 | | | | 3,749 | |
| Total Loans, Net of Unearned Interest | | | 1,958,032 | | | | 1,977,063 | | | | 1,971,612 | | | | 1,957,797 | | | | 1,927,229 | |
| Allowance for Loan Losses | | | (45,401 | ) | | | (41,782 | ) | | | (40,172 | ) | | | (37,004 | ) | | | (30,544 | ) |
| Loans, Net | | | 1,912,631 | | | | 1,935,281 | | | | 1,931,440 | | | | 1,920,793 | | | | 1,896,685 | |
| | | | | | | | | | | | | | | | | | | | | |
| Premises and Equipment, Net | | | 111,797 | | | | 109,050 | | | | 107,259 | | | | 106,433 | | | | 104,806 | |
| Intangible Assets | | | 89,851 | | | | 90,862 | | | | 91,872 | | | | 92,883 | | | | 94,192 | |
| Other Assets | | | 113,611 | | | | 102,234 | | | | 87,483 | | | | 82,072 | | | | 66,308 | |
| Total Other Assets | | | 315,259 | | | | 302,146 | | | | 286,614 | | | | 281,388 | | | | 265,306 | |
| | | | | | | | | | | | | | | | | | | | | |
| Total Assets | | $ | 2,491,937 | | | $ | 2,525,839 | | | $ | 2,499,379 | | | $ | 2,488,699 | | | $ | 2,454,450 | |
| | | | | | | | | | | | | | | | | | | | | |
| LIABILITIES | | | | | | | | | | | | | | | | | | | | |
| Deposits: | | | | | | | | | | | | | | | | | | | | |
| Noninterest Bearing Deposits | | $ | 397,943 | | | $ | 424,125 | | | $ | 413,608 | | | $ | 419,696 | | | $ | 382,878 | |
| NOW Accounts | | | 687,679 | | | | 733,526 | | | | 726,069 | | | | 758,976 | | | | 698,509 | |
| Money Market Accounts | | | 301,662 | | | | 300,683 | | | | 312,541 | | | | 324,646 | | | | 368,453 | |
| Regular Savings Accounts | | | 122,040 | | | | 123,257 | | | | 121,245 | | | | 115,261 | | | | 116,858 | |
| Certificates of Deposit | | | 440,666 | | | | 424,339 | | | | 416,326 | | | | 373,595 | | | | 396,086 | |
| Total Deposits | | | 1,949,990 | | | | 2,005,930 | | | | 1,989,789 | | | | 1,992,174 | | | | 1,962,784 | |
| | | | | | | | | | | | | | | | | | | | | |
| Short-Term Borrowings | | | 103,711 | | | | 73,989 | | | | 68,193 | | | | 62,044 | | | | 47,069 | |
| Subordinated Notes Payable | | | 62,887 | | | | 62,887 | | | | 62,887 | | | | 62,887 | | | | 62,887 | |
| Other Long-Term Borrowings | | | 50,665 | | | | 52,354 | | | | 53,448 | | | | 51,470 | | | | 53,074 | |
| Other Liabilities | | | 56,269 | | | | 57,973 | | | | 49,518 | | | | 41,294 | | | | 29,841 | |
| | | | | | | | | | | | | | | | | | | | | |
| Total Liabilities | | | 2,223,522 | | | | 2,253,133 | | | | 2,223,835 | | | | 2,209,869 | | | | 2,155,655 | |
| | | | | | | | | | | | | | | | | | | | | |
| SHAREOWNERS' EQUITY | | | | | | | | | | | | | | | | | | | | |
| Common Stock | | | 170 | | | | 170 | | | | 170 | | | | 171 | | | | 171 | |
| Additional Paid-In Capital | | | 36,065 | | | | 35,698 | | | | 35,841 | | | | 36,783 | | | | 36,681 | |
| Retained Earnings | | | 253,104 | | | | 257,828 | | | | 260,287 | | | | 262,890 | | | | 267,853 | |
| Accumulated Other Comprehensive Loss, Net of Tax | | | (20,924 | ) | | | (20,990 | ) | | | (20,754 | ) | | | (21,014 | ) | | | (5,910 | ) |
| | | | | | | | | | | | | | | | | | | | | |
| Total Shareowners' Equity | | | 268,415 | | | | 272,706 | | | | 275,544 | | | | 278,830 | | | | 298,795 | |
| | | | | | | | | | | | | | | | | | | | | |
| Total Liabilities and Shareowners' Equity | | $ | 2,491,937 | | | $ | 2,525,839 | | | $ | 2,499,379 | | | $ | 2,488,699 | | | $ | 2,454,450 | |
| | | | | | | | | | | | | | | | | | | | | |
| OTHER BALANCE SHEET DATA | | | | | | | | | | | | | | | | | | | | |
| Earning Assets | | $ | 2,142,804 | | | $ | 2,173,081 | | | $ | 2,171,620 | | | $ | 2,156,172 | | | $ | 2,148,626 | |
| Intangible Assets | | | | | | | | | | | | | | | | | | | | |
| Goodwill | | | 84,811 | | | | 84,811 | | | | 84,811 | | | | 84,811 | | | | 84,811 | |
| Deposit Base | | | 4,196 | | | | 5,159 | | | | 6,121 | | | | 7,084 | | | | 8,345 | |
| Other | | | 844 | | | | 892 | | | | 940 | | | | 988 | | | | 1,036 | |
| Interest Bearing Liabilities | | | 1,769,310 | | | | 1,771,035 | | | | 1,760,709 | | | | 1,748,879 | | | | 1,742,936 | |
| | | | | | | | | | | | | | | | | | | | | |
| Book Value Per Diluted Share | | $ | 15.76 | | | $ | 16.03 | | | $ | 16.18 | | | $ | 16.27 | | | $ | 17.45 | |
| Tangible Book Value Per Diluted Share | | | 10.48 | | | | 10.70 | | | | 10.80 | | | | 10.85 | | | | 11.94 | |
| | | | | | | | | | | | | | | | | | | | | |
| Actual Basic Shares Outstanding | | | 17,032 | | | | 17,010 | | | | 17,010 | | | | 17,127 | | | | 17,125 | |
| Actual Diluted Shares Outstanding | | | 17,033 | | | | 17,010 | | | | 17,031 | | | | 17,136 | | | | 17,129 | |
| | | | | | | | | | | | | | | | | | | | | |
| CAPITAL CITY BANK GROUP, INC. | | | | | | | | | | | | | | | |
| ALLOWANCE FOR LOAN LOSSES | | | | | | | | | | | | | | | |
| AND NONPERFORMING ASSETS | | | | | | | | | | | | | | | |
| Unaudited | | | | | | | | | | | | | | | |
| | | 2009 | | | 2009 | | | 2009 | | | 2008 | | | 2008 | |
| (Dollars in thousands) | | Third Quarter | | | Second Quarter | | | First Quarter | | | Fourth Quarter | | | Third Quarter | |
| | | | | | | | | | | | | | | | |
| ALLOWANCE FOR LOAN LOSSES | | | | | | | | | | | | | | | |
| Balance at Beginning of Period | | $ | 41,782 | | | $ | 40,172 | | | $ | 37,004 | | | $ | 30,544 | | | $ | 22,518 | |
| Provision for Loan Losses | | | 12,347 | | | | 8,426 | | | | 8,410 | | | | 12,497 | | | | 10,425 | |
| Net Charge-Offs | | | 8,728 | | | | 6,816 | | | | 5,242 | | | | 6,037 | | | | 2,399 | |
| | | | | | | | | | | | | | | | | | | | | |
| Balance at End of Period | | $ | 45,401 | | | $ | 41,782 | | | $ | 40,172 | | | $ | 37,004 | | | $ | 30,544 | |
| As a % of Loans | | | 2.32 | % | | | 2.12 | % | | | 2.04 | % | | | 1.89 | % | | | 1.59 | % |
| As a % of Nonperforming Loans | | | 40.90 | % | | | 33.71 | % | | | 34.82 | % | | | 37.52 | % | | | 48.55 | % |
| As a % of Nonperforming Assets | | | 31.45 | % | | | 29.09 | % | | | 31.69 | % | | | 34.31 | % | | | 45.10 | % |
| | | | | | | | | | | | | | | | | | | | | |
| CHARGE-OFFS | | | | | | | | | | | | | | | | | | | | |
| Commercial, Financial and Agricultural | | $ | 633 | | | $ | 388 | | | $ | 857 | | | $ | 331 | | | $ | 275 | |
| Real Estate - Construction | | | 2,315 | | | | 3,356 | | | | 320 | | | | 1,774 | | | | 77 | |
| Real Estate - Commercial | | | 1,707 | | | | 123 | | | | 1,002 | | | | 293 | | | | (35 | ) |
| Real Estate - Residential | | | 3,394 | | | | 2,379 | | | | 1,975 | | | | 2,264 | | | | 797 | |
| Consumer | | | 1,324 | | | | 1,145 | | | | 2,117 | | | | 1,993 | | | | 1,797 | |
| | | | | | | | | | | | | | | | | | | | | |
| Total Charge-Offs | | $ | 9,373 | | | $ | 7,391 | | | $ | 6,271 | | | $ | 6,655 | | | $ | 2,911 | |
| | | | | | | | | | | | | | | | | | | | | |
| RECOVERIES | | | | | | | | | | | | | | | | | | | | |
| Commercial, Financial and Agricultural | | $ | 64 | | | $ | 84 | | | $ | 74 | | | $ | 68 | | | $ | 68 | |
| Real Estate - Construction | | | 150 | | | | - | | | | 385 | | | | - | | | | 4 | |
| Real Estate - Commercial | | | 8 | | | | 1 | | | | - | | | | - | | | | 1 | |
| Real Estate - Residential | | | 92 | | | | 51 | | | | 58 | | | | 128 | | | | 6 | |
| Consumer | | | 331 | | | | 439 | | | | 512 | | | | 422 | | | | 433 | |
| | | | | | | | | | | | | | | | | | | | | |
| Total Recoveries | | $ | 645 | | | $ | 575 | | | $ | 1,029 | | | $ | 618 | | | $ | 512 | |
| | | | | | | | | | | | | | | | | | | | | |
| NET CHARGE-OFFS | | $ | 8,728 | | | $ | 6,816 | | | $ | 5,242 | | | $ | 6,037 | | | $ | 2,399 | |
| | | | | | | | | | | | | | | | | | | | | |
Net Charge-Offs as a % of Average Loans(1) | | | 1.76 | % | | | 1.39 | % | | | 1.08 | % | | | 1.24 | % | | | 0.50 | % |
| | | | | | | | | | | | | | | | | | | | | |
| RISK ELEMENT ASSETS | | | | | | | | | | | | | | | | | | | | |
| Nonaccruing Loans | | $ | 91,880 | | | $ | 111,039 | | | $ | 110,200 | | | $ | 96,876 | | | $ | 61,509 | |
| Restructured Loans | | | 19,121 | | | | 12,916 | | | | 5,157 | | | | 1,744 | | | | 1,403 | |
| Total Nonperforming Loans | | | 111,001 | | | | 123,955 | | | | 115,357 | | | | 98,620 | | | | 62,912 | |
| Other Real Estate | | | 33,371 | | | | 19,671 | | | | 11,425 | | | | 9,222 | | | | 4,813 | |
| Total Nonperforming Assets | | $ | 144,372 | | | $ | 143,626 | | | $ | 126,783 | | | $ | 107,842 | | | $ | 67,725 | |
| | | | | | | | �� | | | | | | | | | | | | | |
| Past Due Loans 90 Days or More | | $ | 486 | | | $ | - | | | $ | - | | | $ | 88 | | | $ | 50 | |
| | | | | | | | | | | | | | | | | | | | | |
| Nonperforming Loans as a % of Loans | | | 5.67 | % | | | 6.27 | % | | | 5.85 | % | | | 5.04 | % | | | 3.26 | % |
| Nonperforming Assets as a % of | | | | | | | | | | | | | | | | | | | | |
| Loans and Other Real Estate | | | 7.25 | % | | | 7.19 | % | | | 6.39 | % | | | 5.48 | % | | | 3.51 | % |
Nonperforming Assets as a % of Capital(2) | | | 46.01 | % | | | 45.67 | % | | | 40.16 | % | | | 34.15 | % | | | 20.56 | % |
| | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | |
| (1) Annualized | | | | | | | | | | | | | | | | | | | | |
| (2) Capital includes allowance for loan losses. | | | | | | | | | | | | | | | | | |
AVERAGE BALANCE AND INTEREST RATES(1) | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Unaudited | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Third Quarter 2009 | | | Second Quarter 2009 | | | First Quarter 2009 | | | Fourth Quarter 2008 | | | Third Quarter 2008 | | | September 2009 YTD | | | September 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 | | $ | 1,964,984 | | | | 29,695 | | | | 6.00 | % | | $ | 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 | % | | $ | 1,967,759 | | | | 89,373 | | | | 6.07 | % | | $ | 1,911,142 | | | | 101,684 | | | | 7.11 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Investment Securities | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Taxable Investment Securities | | | 81,777 | | | | 682 | | | | 3.32 | % | | | 89,574 | | | | 742 | | | | 3.31 | % | | | 90,927 | | | | 776 | | | | 3.43 | % | | | 90,296 | | | | 813 | | | | 3.59 | % | | | 93,723 | | | | 940 | | | | 3.99 | % | | | 87,393 | | | | 2,200 | | | | 3.35 | % | | | 94,106 | | | | 3,076 | | | | 4.35 | % |
| Tax-Exempt Investment Securities | | | 107,307 | | | | 985 | | | | 3.67 | % | | | 106,869 | | | | 1,067 | | | | 4.00 | % | | | 101,108 | | | | 1,133 | | | | 4.48 | % | | | 103,817 | | | | 1,252 | | | | 4.82 | % | | | 98,966 | | | | 1,234 | | | | 4.99 | % | | | 105,117 | | | | 3,185 | | | | 4.04 | % | | | 94,725 | | | | 3,641 | | | | 5.13 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Total Investment Securities | | | 189,084 | | | | 1,667 | | | | 3.52 | % | | | 196,443 | | | | 1,809 | | | | 3.68 | % | | | 192,035 | | | | 1,909 | | | | 3.98 | % | | | 194,113 | | | | 2,065 | | | | 4.25 | % | | | 192,689 | | | | 2,174 | | | | 4.50 | % | | | 192,510 | | | | 5,385 | | | | 3.73 | % | | | 188,831 | | | | 6,717 | | | | 4.74 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Funds Sold | | | 3,294 | | | | 1 | | | | 0.11 | % | | | 4,641 | | | | 1 | | | | 0.10 | % | | | 10,116 | | | | 3 | | | | 0.13 | % | | | 16,645 | | | | 32 | | | | 0.74 | % | | | 99,973 | | | | 475 | | | | 1.86 | % | | | 5,992 | | | | 5 | | | | 0.12 | % | | | 170,831 | | | | 3,077 | | | | 2.37 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Total Earning Assets | | | 2,157,362 | | | $ | 31,363 | | | | 5.77 | % | | | 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 | % | | | 2,166,261 | | | $ | 94,763 | | | | 5.85 | % | | | 2,270,804 | | | $ | 111,478 | | | | 6.55 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Cash and Due From Banks | | | 76,622 | | | | | | | | | | | | 81,368 | | | | | | | | | | | | 76,826 | | | | | | | | | | | | 76,027 | | | | | | | | | | | | 77,309 | | | | | | | | | | | | 78,271 | | | | | | | | | | | | 84,552 | | | | | | | | | |
| Allowance for Loan Losses | | | (42,774 | ) | | | | | | | | | | | (41,978 | ) | | | | | | | | | | | (38,007 | ) | | | | | | | | | | | (30,347 | ) | | | | | | | | | | | (22,851 | ) | | | | | | | | | | | (40,937 | ) | | | | | | | | | | | (20,554 | ) | | | | | | | | |
| Other Assets | | | 306,759 | | | | | | | | | | | | 291,681 | | | | | | | | | | | | 281,869 | | | | | | | | | | | | 266,797 | | | | | | | | | | | | 266,510 | | | | | | | | | | | | 293,528 | | | | | | | | | | | | 268,220 | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Total Assets | | $ | 2,497,969 | | | | | | | | | | | $ | 2,506,352 | | | | | | | | | | | $ | 2,486,925 | | | | | | | | | | | $ | 2,463,318 | | | | | | | | | | | $ | 2,528,638 | | | | | | | | | | | $ | 2,497,123 | | | | | | | | | | | $ | 2,603,022 | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| LIABILITIES: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Interest Bearing Deposits | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| NOW Accounts | | $ | 678,292 | | | $ | 257 | | | | 0.15 | % | | $ | 709,039 | | | $ | 249 | | | | 0.14 | % | | $ | 719,265 | | | $ | 225 | | | | 0.13 | % | | $ | 684,246 | | | $ | 636 | | | | 0.37 | % | | $ | 727,754 | | | $ | 1,443 | | | | 0.79 | % | | $ | 702,048 | | | $ | 731 | | | | 0.14 | % | | $ | 763,164 | | | $ | 6,818 | | | | 1.19 | % |
| Money Market Accounts | | | 301,230 | | | | 281 | | | | 0.37 | % | | | 298,007 | | | | 192 | | | | 0.26 | % | | | 321,562 | | | | 190 | | | | 0.24 | % | | | 360,940 | | | | 716 | | | | 0.79 | % | | | 369,544 | | | | 1,118 | | | | 1.20 | % | | | 306,858 | | | | 663 | | | | 0.29 | % | | | 378,756 | | | | 4,526 | | | | 1.60 | % |
| Savings Accounts | | | 122,934 | | | | 15 | | | | 0.05 | % | | | 123,034 | | | | 15 | | | | 0.05 | % | | | 118,142 | | | | 14 | | | | 0.05 | % | | | 117,311 | | | | 28 | | | | 0.09 | % | | | 117,970 | | | | 30 | | | | 0.10 | % | | | 121,389 | | | | 44 | | | | 0.05 | % | | | 116,112 | | | | 93 | | | | 0.11 | % |
| Time Deposits | | | 430,944 | | | | 2,073 | | | | 1.91 | % | | | 417,545 | | | | 2,044 | | | | 1.96 | % | | | 392,006 | | | | 2,066 | | | | 2.14 | % | | | 379,266 | | | | 2,468 | | | | 2.59 | % | | | 410,101 | | | | 3,224 | | | | 3.13 | % | | | 413,641 | | | | 6,183 | | | | 2.00 | % | | | 440,019 | | | | 12,021 | | | | 3.65 | % |
| Total Interest Bearing Deposits | | | 1,533,400 | | | | 2,626 | | | | 0.68 | % | | | 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 | % | | | 1,543,936 | | | | 7,621 | | | | 0.66 | % | | | 1,698,051 | | | | 23,458 | | | | 1.85 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Short-Term Borrowings | | | 97,305 | | | | 113 | | | | 0.45 | % | | | 87,768 | | | | 88 | | | | 0.40 | % | | | 85,318 | | | | 68 | | | | 0.32 | % | | | 69,079 | | | | 110 | | | | 0.62 | % | | | 51,738 | | | | 230 | | | | 1.76 | % | | | 90,174 | | | | 269 | | | | 0.39 | % | | | 58,530 | | | | 1,047 | | | | 2.38 | % |
| Subordinated Notes Payable | | | 62,887 | | | | 936 | | | | 5.83 | % | | | 62,887 | | | | 931 | | | | 5.86 | % | | | 62,887 | | | | 927 | | | | 5.89 | % | | | 62,887 | | | | 937 | | | | 5.83 | % | | | 62,887 | | | | 936 | | | | 5.83 | % | | | 62,887 | | | | 2,794 | | | | 5.86 | % | | | 62,887 | | | | 2,798 | | | | 5.85 | % |
| Other Long-Term Borrowings | | | 51,906 | | | | 560 | | | | 4.28 | % | | | 52,775 | | | | 566 | | | | 4.30 | % | | | 53,221 | | | | 568 | | | | 4.33 | % | | | 53,261 | | | | 587 | | | | 4.39 | % | | | 43,237 | | | | 488 | | | | 4.48 | % | | | 52,629 | | | | 1,694 | | | | 4.30 | % | | | 35,194 | | | | 1,215 | | | | 4.61 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Total Interest Bearing Liabilities | | | 1,745,498 | | | $ | 4,235 | | | | 0.96 | % | | | 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 | % | | | 1,749,626 | | | $ | 12,378 | | | | 0.95 | % | | | 1,854,662 | | | $ | 28,518 | | | | 2.05 | % |
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| Noninterest Bearing Deposits | | | 416,770 | | | | | | | | | | | | 423,566 | | | | | | | | | | | | 406,380 | | | | | | | | | | | | 404,103 | | | | | | | | | | | | 405,314 | | | | | | | | | | | | 415,610 | | | | | | | | | | | | 408,372 | | | | | | | | | |
| Other Liabilities | | | 60,674 | | | | | | | | | | | | 54,617 | | | | | | | | | | | | 46,510 | | | | | | | | | | | | 29,998 | | | | | | | | | | | | 36,498 | | | | | | | | | | | | 53,986 | | | | | | | | | | | | 39,547 | | | | | | | | | |
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| Total Liabilities | | | 2,222,942 | | | | | | | | | | | | 2,229,238 | | | | | | | | | | | | 2,205,291 | | | | | | | | | | | | 2,161,091 | | | | | | | | | | | | 2,225,043 | | | | | | | | | | | | 2,219,222 | | | | | | | | | | | | 2,302,581 | | | | | | | | | |
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| SHAREOWNERS' EQUITY: | | $ | 275,027 | | | | | | | | | | | $ | 277,114 | | | | | | | | | | | $ | 281,634 | | | | | | | | | | | $ | 302,227 | | | | | | | | | | | $ | 303,595 | | | | | | | | | | | $ | 277,901 | | | | | | | | | | | $ | 300,441 | | | | | | | | | |
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| Total Liabilities and Shareowners' Equity | | $ | 2,497,969 | | | | | | | | | | | $ | 2,506,352 | | | | | | | | | | | $ | 2,486,925 | | | | | | | | | | | $ | 2,463,318 | | | | | | | | | | | $ | 2,528,638 | | | | | | | | | | | $ | 2,497,123 | | | | | | | | | | | $ | 2,603,022 | | | | | | | | | |
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| Interest Rate Spread | | | | | | $ | 27,128 | | | | 4.81 | % | | | | | | $ | 27,679 | | | | 4.92 | % | | | | | | $ | 27,578 | | | | 4.98 | % | | | | | | $ | 28,387 | | | | 5.01 | % | | | | | | $ | 27,802 | | | | 4.69 | % | | | | | | $ | 82,385 | | | | 4.90 | % | | | | | | $ | 82,960 | | | | 4.50 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Interest Income and Rate Earned(1) | | | $ | 31,363 | | | | 5.77 | % | | | | | | $ | 31,764 | | | | 5.86 | % | | | | | | $ | 31,636 | | | | 5.92 | % | | | | | | $ | 33,869 | | | | 6.27 | % | | | | | | $ | 35,271 | | | | 6.36 | % | | | | | | $ | 94,763 | | | | 5.85 | % | | | | | | $ | 111,478 | | | | 6.55 | % |
Interest Expense and Rate Paid(2) | | | | | | | 4,235 | | | | 0.78 | % | | | | | | | 4,085 | | | | 0.75 | % | | | | | | | 4,058 | | | | 0.76 | % | | | | | | | 5,482 | | | | 1.01 | % | | | | | | | 7,469 | | | | 1.35 | % | | | | | | | 12,378 | | | | 0.76 | % | | | | | | | 28,518 | | | | 1.68 | % |
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| Net Interest Margin | | | | | | $ | 27,128 | | | | 4.99 | % | | | | | | $ | 27,679 | | | | 5.11 | % | | | | | | $ | 27,578 | | | | 5.16 | % | | | | | | $ | 28,387 | | | | 5.26 | % | | | | | | $ | 27,802 | | | | 5.01 | % | | | | | | $ | 82,385 | | | | 5.09 | % | | | | | | $ | 82,960 | | | | 4.87 | % |
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(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. | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
