Exhibit 99.1 Capital City Bank Group, Inc.'s Press Release, dated
July 22, 2004
[CCBG LOGO] For Information Contact:
Corporate Headquarters J. Kimbrough Davis 850-671-0300
217 North Monroe Street Executive Vice President
Tallahassee, FL 32301 Chief Financial Officer
News Release
For Immediate Release July 22, 2004
CAPITAL CITY BANK GROUP, INC. REPORTS
SECOND QUARTER EARNINGS OF
$0.48 PER DILUTED SHARE
HIGHLIGHTS
* Quarterly earnings totaled $6.4 million, or $0.48 per share, a decrease of
$.01 per share or 2.0% over the second quarter of 2003.
* Net interest margin improved 11 basis points to 4.99% over the first
quarter 2004, which continues to significantly exceed peer group.
* Noninterest income up 5.8% over the second quarter of 2003, primarily
attributable to improved deposit and asset management fees.
* Period-end Loans grew 14.2% over second quarter 2003, reflecting strong
growth in CCBG's existing markets and loans acquired in the Quincy State
Bank purchase.
* Credit quality remains strong as indicated by a nonperforming asset ratio
of .27% and a net charge-off ratio of .18%.
EARNINGS HIGHLIGHTS
Three Months Ended Six Months Ended
-------------------------------- --------------------
June 30, March 31, June 30, June 30, June 30,
(Dollars in thousands, except per share data) 2004 2004 2003 2004 2003
- ----------------------------------------------------------------------------------------------------------
EARNINGS
Net Income $ 6,443 4,847 6,440 11,290 12,801
Diluted Earnings Per Common Share $ 0.48 0.37 0.49 0.85 0.97
- ----------------------------------------------------------------------------------------------------------
PERFORMANCE
Return on Average Equity 12.33% 9.45 13.26 10.90 13.40
Return on Average Assets 1.34 1.06 1.45 1.21 1.44
Net Interest Margin 4.99 4.88 5.09 4.93 5.13
Noninterest Income as % of Operating Revenue 34.39 33.64 34.16 34.03 33.56
Efficiency Ratio 63.87 68.06 60.57 65.87 60.76
- ----------------------------------------------------------------------------------------------------------
CAPITAL ADEQUACY
Tier 1 Capital Ratio 10.98% 11.09 12.58 10.98 12.58
Total Capital Ratio 11.86 12.01 13.52 11.86 13.52
Leverage Ratio 8.34 8.38 8.85 8.34 8.85
Equity to Assets 10.35 10.57 10.45 10.35 10.45
1
Three Months Ended Six Months Ended
-------------------------------- --------------------
June 30, March 31, June 30, June 30, June 30,
(Dollars in thousands, except per share data) 2004 2004 2003 2004 2003
- ----------------------------------------------------------------------------------------------------------
ASSET QUALITY
Allowance as % of Non-Performing Loans 452.82% 717.20 331.15 452.82 331.15
Allowance as a % of Loans 0.90 0.94 0.93 0.90 0.93
Net Charge-Offs as % of Average Loans 0.18 0.29 0.27 0.23 0.27
Nonperforming Assets as % of Loans and ORE 0.27 0.20 0.38 0.27 0.38
- ----------------------------------------------------------------------------------------------------------STOCK PERFORMANCE
High $ 43.15 45.55 36.43 45.55 36.43
Low 35.54 39.05 29.74 35.50 26.81
Close $ 39.59 41.25 36.08 39.59 36.08
Average Daily Trading Volume 12,294 8,328 13,251 10,311 12,170
- ----------------------------------------------------------------------------------------------------------
TALLAHASSEE -- Capital City Bank Group, Inc. (NASDAQ: CCBG) reported earnings
for the second quarter totaling $6.4 million, or $0.48 per diluted share.
This compares to $6.4 million, or $0.49 per diluted share in the second
quarter of 2003, a decrease of $.01 per share, or 2.0%. The Return on
Average Assets was 1.34% and the Return on Average Equity was 12.33%,
compared to 1.45% and 13.26%, respectively, for the comparable period in
2003.
Growth in operating revenues of 5.1% was offset by higher expense levels,
reflecting the addition of three new offices in the second half of 2003 and
the acquisition of Quincy State Bank in the first quarter of 2004.
William G. Smith, Jr., President and CEO, stated, "The Company turned in a
solid performance during the second quarter and has momentum heading into the
latter half of this year. Loan growth continues to boost the margin and
credit quality remains strong."
Net interest income in the second quarter was up $941,000, or 4.7% compared
to the second quarter of 2003, due primarily to a decrease in interest
expense of 17.3%. While net interest income on a dollar basis improved, the
net interest margin declined 10 basis points from the second quarter of 2003
to a level of 4.99%, reflecting a 32 basis point decline in earning asset
yields partially offset by an improvement in the cost of funds of 22 basis
points. The margin stabilized in the first quarter of 2004 and, on a linked
quarter basis, posted an 11 basis point improvement in the second quarter
attributable to strong loan growth.
Provision for loan losses of $580,000 represents a $306,000 reduction over
the second quarter of 2003, reflecting a decrease in net charge-offs. Net
charge-offs totaled $649,000, or .18% of average loans for the quarter
compared to $889,000, or .27% for the second quarter of 2003. At quarter-end
the allowance for loan losses was .90% of outstanding loans and provided
coverage of 453% of nonperforming loans.
Noninterest income increased $603,000, or 5.8%, over the second quarter of
2003, primarily due to higher deposit and asset management fees, and other
income. These increases were partially offset by a reduction in mortgage
banking revenues. The increase in deposit fees was driven by higher NSF/OD
fees, partially attributable to a recent change in fee structure and
2
lower NSF/OD charge-offs. Improvement in asset management fees reflects the
recent acquisition of trust accounts from Synovus Trust Company. Higher
merchant service fees and retail brokerage fees contributed to the
improvement in other income. Mortgage banking revenues declined from the
comparable period in 2003 reflecting a general slow-down in residential
lending markets. However, revenues grew $292,000, or 42.1% from first to
second quarter.
Noninterest expense grew by $2.1 million, or 10.7%, in the second quarter of
2004. Higher expense for compensation, occupancy, and advertising expense
were the primary reasons for the increase. The increase in compensation was
driven by higher expense for associate salaries, pension, and associate
insurance. These increases are primarily attributable to the late first
quarter integration of Quincy State Bank. The increase in occupancy was
driven by higher depreciation, premises rental, and software license expense,
primarily attributable to an increase in the number of offices. Advertising
expense increased consistent with several initiatives implemented in the
second quarter and will fluctuate consistent with advertising strategies
planned throughout the year.
Average earning assets for the quarter increased $109.5 million, or 6.8%,
over the comparable period in 2003. The increase in earning assets was
driven by a $174.4 million, or 13.3% increase in average loans generated from
growth in existing markets and $85 million in loans acquired in the recent
Quincy State Bank purchase. All loan categories reflect strong gains.
Offsetting the increase in average loans was a decrease in short-term
investments of $68.7 million, or 60.1%.
Nonperforming assets of $4.1 million declined from the second quarter of 2003
by $1.0 million and represented .27% of total loans and other real estate at
quarter-end. This compares to .38% and .54%, respectively, for the second
and fourth quarters of 2003.
Average total deposits increased $122.8 million, or 8.7%, over the second
quarter of 2003 driven by a $72.5 million increase in nonmaturity deposits,
which produced a favorable shift in deposit mix and a positive impact on the
Company's cost of funds. Deposits acquired in the purchase of Quincy State
Bank totaled $101 million.
The Company ended the second quarter with approximately $24.8 million in
average net overnight funds as compared to $99.3 million in the second
quarter of 2003. The decrease reflects loan growth, repayment of $40 million
in Federal Home Loan Bank advances, and the use of cash to fund the recent
acquisition of Quincy State Bank.
Capital City Bank Group, Inc. is a $2.0 billion financial services company
headquarted in Tallahassee, Florida, providing traditional deposit and credit
services, asset management, trust, mortgage banking, merchant services,
bankcards, data processing and securities brokerage services. Founded in
1895, the Company has 57 banking offices, five residential lending offices,
73 ATMs and 11 Bank 'N Shop locations in Florida, Georgia, and Alabama.
"Safe Harbor" Statement under the Private Securities Litigation Reform Act of
1995: The matters discussed in this press release, that are not historical
facts, contain forward-looking information with respect to strategic
initiatives. Such forward-looking statements are based on current plans and
expectations, which are subject to a number of uncertainties and risks that
have been described in Capital City Bank Group's annual report on Form 10-K
for the fiscal year ended December 31, 2003, and the Company's other filings
with the Securities and Exchange Commission. These uncertainties and risks
could cause future results to differ materially from those anticipated by
such statements.
3
CAPITAL CITY BANK GROUP, INC.
CONSOLIDATED STATEMENT OF INCOME
Unaudited
- ----------------------------------------------------------------------------------------------------------------------------
2004 2003 Six Months Ended
------------------ ---------------------------- June 30,
Second First Fourth Third Second ----------------
(Dollars in thousands, except per share data) Quarter Quarter Quarter Quarter Quarter 2004 2003
- ----------------------------------------------------------------------------------------------------------------------------
INTEREST INCOME
Interest and Fees on Loans $ 22,922 21,272 21,398 21,747 22,126 44,194 44,289
Interest on Investment Securities 1,227 1,176 1,350 1,434 1,539 2,403 3,349
Interest on Funds Sold 116 222 274 303 332 338 685
- ----------------------------------------------------------------------------------------------------------------------------
Total Interest Income 24,265 22,670 23,022 23,484 23,997 46,935 48,323
- ----------------------------------------------------------------------------------------------------------------------------
INTEREST EXPENSE
Interest on Deposits 2,385 2,394 2,558 2,729 3,053 4,779 6,280
Interest on Short-term Borrowings 249 287 319 282 340 536 669
Interest on Long-term Debt 587 497 462 495 501 1,084 1,045
- ----------------------------------------------------------------------------------------------------------------------------
Total Interest Expense 3,221 3,178 3,339 3,506 3,894 6,399 7,994
- ----------------------------------------------------------------------------------------------------------------------------
Net Interest Income 21,044 19,492 19,683 19,978 20,103 40,536 40,329
Provision for Loan Losses 580 961 850 921 886 1,541 1,665
- ----------------------------------------------------------------------------------------------------------------------------
Net Interest Income after Provision for Loan Losses 20,464 18,531 18,833 19,057 19,217 38,995 38,664
============================================================================================================================
NONINTEREST INCOME
Service Charge Revenue 4,427 3,944 4,155 4,123 4,074 8,371 8,041
Data Processing Revenue 703 633 656 578 611 1,336 1,169
Asset Management Fees 950 741 735 660 650 1,691 1,255
Mortgage Banking Revenue 986 694 1,140 2,066 1,540 1,680 2,884
Other Fees 3,965 3,869 3,928 3,525 3,553 7,834 7,024
- ----------------------------------------------------------------------------------------------------------------------------
Total Noninterest Income 11,031 9,881 10,614 10,952 10,428 20,912 20,373
============================================================================================================================
NONINTEREST EXPENSE
Compensation 10,809 10,740 10,016 10,551 9,766 21,549 19,894
Premises 1,749 1,617 1,504 1,589 1,510 3,366 2,879
FF&E 1,977 2,063 2,123 2,048 1,874 4,040 3,669
Intangible Amortization 926 826 810 810 810 1,752 1,621
Other Expense 6,140 5,829 6,140 5,186 5,556 11,969 10,880
- ----------------------------------------------------------------------------------------------------------------------------
Total Noninterest Expense 21,601 21,075 20,593 20,184 19,516 42,676 38,943
============================================================================================================================
OPERATING PROFIT 9,894 7,337 8,854 9,825 10,129 17,231 20,094
Provision for Income Taxes 3,451 2,490 2,758 3,529 3,689 5,941 7,293
- ----------------------------------------------------------------------------------------------------------------------------
NET INCOME $ 6,443 4,847 6,096 6,296 6,440 11,290 12,801
============================================================================================================================
PER SHARE DATA
Basic Earnings $ 0.48 0.37 0.47 0.47 0.49 0.85 0.97
Diluted Earnings 0.48 0.37 0.46 0.47 0.49 0.85 0.97
Cash Dividends $ 0.180 0.180 0.180 0.170 0.170 0.360 0.306
AVERAGE SHARES
Basic 13,274 13,262 13,223 13,221 13,209 13,268 13,209
Diluted 13,277 13,286 13,265 13,260 13,255 13,271 13,255
============================================================================================================================
4
CAPITAL CITY BANK GROUP, INC.
CONSOLIDATED STATEMENT OF FINANCIAL CONDITION
Unaudited
- -----------------------------------------------------------------------------------------------------------------
2004 2003
---------------------- ---------------------------------
Second First Fourth Third Second
(Dollars in thousands, except per share data) Quarter Quarter Quarter Quarter Quarter
- -----------------------------------------------------------------------------------------------------------------
ASSETS
Cash and Due From Banks $ 97,154 93,427 93,140 105,407 98,388
Funds Sold 107,399 90,469 125,452 161,579 168,773
- -----------------------------------------------------------------------------------------------------------------
Total Cash and Cash Equivalents 204,553 183,896 218,592 266,986 267,161
Investment Securities, Available-for-Sale 183,732 188,763 181,734 162,734 170,745
Loans, Net of Unearned 1,521,497 1,465,804 1,341,632 1,322,888 1,332,387
Allowance for Loan Losses (13,657) (13,720) (12,429) (12,424) (12,434)
- -----------------------------------------------------------------------------------------------------------------
Loans, Net 1,507,840 1,452,084 1,329,203 1,310,464 1,319,953
Premises and Equipment 56,263 56,394 54,011 55,347 53,132
Intangible Assets 40,608 41,512 25,792 26,603 27,413
Other Assets 33,834 34,604 37,170 32,289 32,186
- -----------------------------------------------------------------------------------------------------------------
Total Other Assets 130,705 132,510 116,973 114,239 112,731
- -----------------------------------------------------------------------------------------------------------------
Total Assets $2,026,830 1,957,253 1,846,502 1,854,423 1,870,590
=================================================================================================================
LIABILITIES
Deposits:
Noninterest Bearing Deposits $ 520,118 482,703 455,550 456,302 456,050
Interest Bearing Deposits 1,092,618 1,088,963 1,018,655 1,029,139 1,042,527
- -----------------------------------------------------------------------------------------------------------------
Total Deposits 1,612,736 1,571,666 1,474,205 1,485,441 1,498,577
Short-Term Borrowings 127,012 112,343 108,184 112,255 101,629
Long-Term Debt 58,427 49,950 46,475 38,016 57,664
Other Liabilities 18,934 16,366 14,829 19,820 17,251
- -----------------------------------------------------------------------------------------------------------------
Total Liabilities 1,817,109 1,750,325 1,643,693 1,655,532 1,675,121
- -----------------------------------------------------------------------------------------------------------------
SHAREOWNERS' EQUITY
Common Stock 133 132 132 132 132
Additional Paid-in-Capital 17,922 17,788 16,157 15,278 15,447
Retained Earnings 191,645 187,592 185,134 181,395 177,346
Accumulated Other Comprehensive Income 21 1,416 1,386 1,786 2,544
- -----------------------------------------------------------------------------------------------------------------
Total Shareowners' Equity 209,721 206,928 202,809 198,891 195,469
- -----------------------------------------------------------------------------------------------------------------
Total Liabilities and Owners' Equity $2,026,830 1,957,253 1,846,502 1,854,423 1,870,590
=================================================================================================================
OTHER BALANCE SHEET DATA
Earning Assets $1,812,628 1,745,036 1,648,818 1,647,201 1,671,905
Intangible Assets
Goodwill 19,656 19,633 6,680 6,680 6,680
Deposit Base 19,786 20,683 19,112 19,923 20,733
Other 1,166 1,196 - - -
Interest Bearing Liabilities 1,278,057 1,251,256 1,173,314 1,179,410 1,201,820
- -----------------------------------------------------------------------------------------------------------------
Book Value Per Diluted Share $ 15.80 15.54 15.27 15.00 14.73
Tangible Book Value Per Diluted Share 12.74 12.43 13.33 13.00 12.67
- -----------------------------------------------------------------------------------------------------------------
Actual Basic Shares Outstanding 13,275 13,273 13,236 13,222 13,221
Actual Diluted Shares Outstanding 13,277 13,312 13,280 13,256 13,267
=================================================================================================================
5
CAPITAL CITY BANK GROUP, INC.
ALLOWANCE FOR LOAN LOSSES
AND NONPERFORMING ASSETS
Unaudited
- -----------------------------------------------------------------------------------------------------------------
2004 2003
---------------------- ---------------------------------
Second First Fourth Third Second
(Dollars in thousands, except per share data) Quarter Quarter Quarter Quarter Quarter
- -----------------------------------------------------------------------------------------------------------------
ALLOWANCE FOR LOAN LOSSES
Balance at Beginning of Period $13,720 12,429 12,424 12,434 12,437
Acquired Reserves 6 1,307 0 0 0
Provision for Loan Losses 580 961 850 921 886
Net Charge-Offs 649 977 845 931 889
- -----------------------------------------------------------------------------------------------------------------
Balance at End of Period $13,657 13,720 12,429 12,424 12,434
=================================================================================================================
As a % of Loans 0.90% 0.94 0.93 0.94 0.93
As a % of Nonperforming Loans 452.82 717.20 529.80 183.35 331.15
As a % of Nonperforming Assets 334.73 459.63 170.24 148.51 244.73
=================================================================================================================
CHARGE-OFFS
Commercial, Financial and Agricultural $ 286 167 46 61 177
Real Estate - Construction 0 0 0 0 0
Real Estate - Mortgage 0 39 0 91 0
Real Estate - Residential 11 83 58 119 32
Consumer 885 1,047 1,054 937 916
- -----------------------------------------------------------------------------------------------------------------
Total Charge-Offs $ 1,182 1,336 1,158 1,208 1,125
=================================================================================================================
RECOVERIES
Commercial, Financial and Agricultural $ 24 12 13 73 42
Real Estate - Construction 0 0 0 0 0
Real Estate - Mortgage 0 0 0 0 0
Real Estate - Residential 176 0 17 0 0
Consumer 333 347 283 204 194
- -----------------------------------------------------------------------------------------------------------------
Total Recoveries $ 533 359 313 277 236
=================================================================================================================
NET CHARGE-OFFS $ 649 977 845 931 889
=================================================================================================================
Net Charge-Offs as a % of Average Loans <F1> 0.18 0.29 0.25 0.28 0.27
=================================================================================================================
RISK ELEMENT ASSETS
Nonaccruing Loans $ 3,016 1,913 2,346 6,776 3,755
Restructured 0 0 0 0 0
- -----------------------------------------------------------------------------------------------------------------
Total Nonperforming Loans 3,016 1,913 2,346 6,776 3,755
Other Real Estate 1,064 1,072 4,955 1,590 1,326
- -----------------------------------------------------------------------------------------------------------------
Total Nonperforming Assets $ 4,080 2,985 7,301 8,366 5,081
=================================================================================================================
Past Due Loans 90 Days or More $ 330 1,351 328 410 1,976
=================================================================================================================
Nonperforming Loans as a % of Loans 0.20% 0.13 0.17 0.51 0.28
Nonperforming Assets as a % of
Loans and Other Real Estate 0.27 0.20 0.54 0.63 0.38
Nonperforming Assets as a % of Capital <F2> 1.83 1.35 3.39 3.96 2.44
=================================================================================================================
<FN>
<F1> Annualized
<F2> Capital includes allowance for loan losses.
</FN>
6
CAPITAL CITY BANK GROUP, INC.
AVERAGE BALANCE AND INTEREST RATES <F1>
Unaudited
- -------------------------------------------------------------------------------------------------------------------------------
Second Quarter of 2004 First Quarter 2004 Fourth Quarter 2003
------------------------- ------------------------- ------------------------
Average Average Average Average Average Average
(Dollars in thousands) Balance Interest Rate Balance Interest Rate Balance Interest Rate
- -------------------------------------------- ------------------------- ------------------------- ------------------------
ASSETS:
Loans, Net of Unearned Interest $1,491,142 $22,961 6.19% 1,357,206 21,310 6.32 1,329,673 21,436 6.40
Investment Securities
Taxable Investment Securities 134,634 745 2.21 121,702 635 2.09 133,029 774 2.31
Tax-Exempt Investment Securities 50,191 732 5.83 54,274 822 6.06 58,006 875 6.03
- --------------------------------------------------------------------------------------------------------------------------------
Total Investment Securities 184,825 1,477 3.20 175,976 1,457 3.31 191,035 1,649 3.45
Funds Sold 45,688 116 1.01 101,286 222 0.87 115,561 274 0.93
- --------------------------------------------------------------------------------------------------------------------------------
Total Earning Assets 1,721,655 $24,554 5.74% 1,634,468 22,989 5.66 1,636,269 23,359 5.66
============== ============ ============
Cash and Due From Banks 89,921 90,327 81,272
Allowance For Loan Losses (13,804) (12,725) (12,494)
Other Assets 131,713 118,426 114,505
- -------------------------------------------------------- --------- ---------
Total Assets $1,929,485 1,830,496 1,819,552
======================================================== ========= =========
LIABILITIES:
Interest Bearing Deposits
NOW Accounts $ 283,297 121 0.17% 271,878 124 0.18 273,497 130 0.19
Money Market Accounts 215,746 239 0.44 215,078 239 0.45 215,540 242 0.44
Savings Accounts 129,684 32 0.10 115,985 28 0.10 111,957 28 0.10
Time Deposits 433,514 1,993 1.85 420,501 2,003 1.92 429,209 2,158 1.99
- --------------------------------------------------------------------------------------------------------------------------------
1,062,241 2,385 0.90 1,023,442 2,394 0.94 1,030,203 2,558 0.99
Short-Term Borrowings 109,723 249 0.91 104,406 288 1.11 103,606 319 1.22
Long-Term Debt 53,752 587 4.39 47,023 497 4.25 42,881 462 4.27
- --------------------------------------------------------------------------------------------------------------------------------
Total Interest Bearing Liabilities 1,225,716 $ 3,221 1.06% 1,174,871 3,179 1.09 1,176,690 3,339 1.13
============== ============ ============
Noninterest Bearing Deposits 476,389 433,718 420,892
Other Liabilities 17,169 15,512 20,031
- -------------------------------------------------------- --------- ---------
Total Liabilities 1,719,274 1,624,101 1,617,613
SHAREOWNERS' EQUITY: $ 210,211 206,395 201,939
- -------------------------------------------------------- --------- ---------
Total Liabilities and Shareowners' Equity $1,929,485 1,830,496 1,819,552
======================================================== ========= =========
Interest Rate Spread $21,333 4.68% 19,810 4.57 20,020 4.53
======================================================================== ============ ============
Interest Income and Rate Earned $24,554 5.74 22,989 5.66 23,359 5.66
Interest Expense and Rate Paid <F2> 3,221 0.75 3,179 0.78 3,339 0.81
- ------------------------------------------------------------------------ ------------ ------------
Net Interest Margin $21,333 4.99% 19,810 4.88 20,020 4.85
======================================================================== ============ ============
<FN>
<F1> Interest and average rates are calculated on a tax-equivalent basis using the 35% Federal tax rate.
<F2> Rate calculated based on average earning assets.
</FN>
7
CAPITAL CITY BANK GROUP, INC.
AVERAGE BALANCE AND INTEREST RATES <F1>
Unaudited
- ----------------------------------------------------------------------------------------------------
Third Quarter of 2003 Second Quarter 2003
------------------------- -------------------------
Average Average Average Average
(Dollars in thousands) Balance Interest Rate Balance Interest Rate
- -------------------------------------------- ------------------------- -------------------------
ASSETS:
Loans, Net of Unearned Interest $1,336,139 $21,796 6.47% 1,316,705 22,166 6.75
Investment Securities
Taxable Investment Securities 108,234 841 3.09 118,494 929 3.13
Tax-Exempt Investment Securities 60,306 898 5.96 62,552 923 5.90
- ----------------------------------------------------------------------------------------------------
Total Investment Securities 168,540 1,739 4.12 181,046 1,852 4.09
Funds Sold 130,010 303 0.91 114,382 332 1.15
- ----------------------------------------------------------------------------------------------------
Total Earning Assets 1,634,689 $23,838 5.79% 1,612,133 24,350 6.06
============== ============
Cash and Due From Banks 80,246 74,537
Allowance For Loan Losses (12,534) (12,531)
Other Assets 113,604 112,852
- -------------------------------------------------------- ---------
Total Assets $1,816,005 1,786,991
======================================================== =========
LIABILITIES:
Interest Bearing Deposits
NOW Accounts $ 263,729 151 0.23% 256,675 193 0.30
Money Market Accounts 220,924 257 0.46 211,314 392 0.74
Savings Accounts 111,644 28 0.10 109,424 68 0.25
Time Deposits 434,206 2,293 2.10 434,515 2,400 2.22
- ----------------------------------------------------------------------------------------------------
1,030,503 2,729 1.05 1,011,928 3,053 1.21
Short-Term Borrowings 92,316 282 1.21 102,510 340 1.33
Long-Term Debt 53,041 495 3.70 54,434 501 3.69
- -----------------------------------------------------------------------------------------------------
Total Interest Bearing Liabilities 1,175,860 $ 3,506 1.18% 1,168,872 3,894 1.34
============== ============
Noninterest Bearing Deposits 421,376 403,870
Other Liabilities 19,709 19,468
- -------------------------------------------------------- ---------
Total Liabilities 1,616,945 1,592,210
SHAREOWNERS' EQUITY: $ 199,060 194,781
- -------------------------------------------------------- ---------
Total Liabilities and Shareowners' Equity $1,816,005 1,786,991
======================================================== =========
Interest Rate Spread $20,332 4.61% 20,456 4.72
======================================================================== ============
Interest Income and Rate Earned $23,838 5.79 24,350 6.06
Interest Expense and Rate Paid <F2> 3,506 0.85 3,894 0.97
- ------------------------------------------------------------------------ ------------
Net Interest Margin $20,332 4.94% 20,456 5.09
- ------------------------------------------------------------------------ ------------
<FN>
<F1> Interest and average rates are calculated on a tax-equivalent basis using the 35% Federal tax rate.
<F2> Rate calculated based on average earning assets.
</FN>
8
CAPITAL CITY BANK GROUP, INC.
AVERAGE BALANCE AND INTEREST RATES <F1>
Unaudited
- ----------------------------------------------------------------------------------------------------
Six Months Ended Six Months Ended
June 30, 2004 June 30, 2003
------------------------- -------------------------
Average Average Average Average
(Dollars in thousands) Balance Interest Rate Balance Interest Rate
- -------------------------------------------- ------------------------- -------------------------
ASSETS:
Loans, Net of Unearned Interest $1,424,175 $44,271 6.25% 1,303,008 44,375 6.87
Investment Securities
Taxable Investment Securities 128,167 1,380 2.15 128,514 2,109 3.28
Tax-Exempt Investment Securities 52,233 1,554 5.95 63,656 1,877 5.90
- ----------------------------------------------------------------------------------------------------
Total Investment Securities 180,400 2,934 3.26 192,170 3,986 4.15
Funds Sold 73,487 338 0.91 118,523 685 1.15
- ----------------------------------------------------------------------------------------------------
Total Earning Assets 1,678,062 $47,543 5.70% 1,613,701 49,046 6.13
============== =============
Cash and Due From Banks 90,124 78,473
Allowance For Loan Losses (13,264) (12,575)
Other Assets 125,069 112,198
- -------------------------------------------------------- ---------
Total Assets $1,879,991 1,791,797
======================================================== =========
LIABILITIES:
Interest Bearing Deposits
NOW Accounts $ 277,588 245 0.18% 259,630 396 0.31
Money Market Accounts 215,412 478 0.45 212,918 812 0.77
Savings Accounts 122,835 60 0.10 107,841 133 0.25
Time Deposits 427,007 3,996 1.88 434,669 4,939 2.29
- ----------------------------------------------------------------------------------------------------
1,042,842 4,779 0.92 1,015,058 6,280 1.25
Short-Term Borrowings 107,064 536 1.01 104,642 669 1.29
Long-Term Debt 50,387 1,084 4.33 63,354 1,045 3.33
- ----------------------------------------------------------------------------------------------------
Total Interest Bearing Liabilities 1,200,293 $ 6,399 1.07% 1,183,054 7,994 1.36
============== =============
Noninterest Bearing Deposits 455,053 396,744
Other Liabilities 16,342 19,389
- -------------------------------------------------------- ---------
Total Liabilities 1,671,688 1,599,187
SHAREOWNERS' EQUITY: $ 208,303 192,610
- -------------------------------------------------------- ---------
Total Liabilities and Shareowners' Equity $1,879,991 1,791,797
======================================================== =========
Interest Rate Spread $41,144 4.63% 41,052 4.77
======================================================================== =============
Interest Income and Rate Earned $47,543 5.70 49,046 6.13
Interest Expense and Rate Paid <F2> 6,399 0.77 7,994 1.00
- ------------------------------------------------------------------------ -------------
Net Interest Margin $41,144 4.93% 41,052 5.13
- ------------------------------------------------------------------------ -------------
<FN>
<F1> Interest and average rates are calculated on a tax-equivalent basis using the 35% Federal tax rate.
<F2> Rate calculated based on average earning assets.
</FN>
9