Exhibit 99.1 Press release, dated April 26, 2005, announcing the Company's
financial results for the first quarter of 2005.
Capital City Bank Group [CCBG LOGO] For Information Contact:
Corporate Headquarters J. Kimbrough Davis
217 North Monroe Street Executive Vice President
Tallahassee, FL 32301 Chief Financial Officer
(850) 671-0431
NEWS RELEASE
For Immediate Release: April 26, 2005
CAPITAL CITY BANK GROUP, INC. REPORTS
FIRST QUARTER EARNINGS OF
$0.37 PER DILUTED SHARE, UP 26.1% FROM 2004
- -----------------------------------------------------------------------------
HIGHLIGHTS
* Quarterly earnings totaled $6.4 million, or $0.45 per share, an increase
of 31.6% and 21.6%, respectively, over the first quarter of 2004. Results
include the impact of the acquisitions of Quincy State Bank on March 19,
2004, and Farmers and Merchants Bank on October 15, 2004.
* Strong growth in operating revenues reflective of 26.0% growth in net
interest income and 11.9% increase in noninterest income.
* Improvement in net interest margin as reflected by a 4 basis point
improvement over the first quarter of 2004 and 17 basis point improvement
over the fourth quarter of 2004 - net interest margin of 4.92% continues
to significantly exceed peer group.
* Lower loan loss provision due to continued strong credit quality as
reflected by a nonperforming asset ratio of .31% and an annualized net
charge-off ratio of .09%.
* Expansion continues with the acquisition of First Alachua Banking
Corporation ($230.0 million in assets), which is expected to close in May
2005.
- ------------------------------------------------------------------------------------------
EARNINGS HIGHLIGHTS
Three Months Ended
---------------------------------------
March 31, December 31, March 31,
(Dollars in thousands, except per share data) 2005 2004 2004
- ------------------------------------------------------------------------------------------
EARNINGS
Net Income $ 6,377 7,262 4,847
Diluted Earnings Per Common Share 0.45 0.51 0.37
- ---------------------------------------------------------------------------------------
PERFORMANCE
Return on Average Equity 9.91% 11.61 9.45
Return on Average Assets 1.12 1.24 1.06
Net Interest Margin 4.92 4.75 4.88
Noninterest Income as % of Operating Revenue 31.06 32.91 33.64
Efficiency Ratio 67.06 63.85 68.06
- ---------------------------------------------------------------------------------------
CAPITAL ADEQUACY
Tier 1 Capital Ratio 11.52% 11.44 11.09
Total Capital Ratio 12.39 12.33 12.01
Leverage Ratio 9.03 8.79 8.38
Equity to Assets 11.07 10.86 10.57
- ---------------------------------------------------------------------------------------
1
- ------------------------------------------------------------------------------------------
EARNINGS HIGHLIGHTS
Three Months Ended
---------------------------------------
March 31, December 31, March 31,
(Dollars in thousands, except per share data) 2005 2004 2004
- ------------------------------------------------------------------------------------------
ASSET QUALITY
Allowance as % of Non-Performing Loans 302.13% 345.18 717.20
Allowance as a % of Loans 0.87 0.88 0.94
Net Charge-offs as % of Average Loans 0.09 0.22 0.29
Nonperforming Assets as % of Loans and ORE 0.31 0.29 0.20
- ---------------------------------------------------------------------------------------
STOCK PERFORMANCE
High $ 42.00 45.98 45.55
Low 36.63 37.71 39.05
Close $ 40.51 41.80 41.25
Average Daily Trading Volume 16,820 11,940 8,328
- ---------------------------------------------------------------------------------------
Capital City Bank Group, Inc. (NASDAQ: CCBG) reported earnings for the first
quarter totaling $6.4 million, or $0.45 per diluted share. This compares to
$4.8 million, or $0.37 per diluted share in the first quarter of 2004, an
increase of 31.6% and 21.6%, respectively. Results include the impact of the
acquisitions of Quincy State Bank on March 19, 2004, and Farmers and
Merchants Bank on October 15, 2004. The Return on Average Assets was 1.12%
and the Return on Average Equity was 9.91%, compared to 1.06% and 9.45%,
respectively, for the comparable period in 2004.
The increase in earnings was primarily attributable to an increase in
operating revenue of $6.2 million, or 21.3%, and a $551,000, or 57.3%,
decrease in the loan loss provision, partially offset by an increase in
noninterest expense of $4.2 million, or 19.9%. The increase in operating
revenues is reflective of a 26.0% increase in net interest income and an
11.9% increase in noninterest income. The increase in net interest income is
attributable to loan growth and an improving net interest margin. The lower
loan loss provision is reflective of continued strong credit quality. Higher
expense for compensation, occupancy, and advertising drove the increase in
noninterest expense.
William G. Smith, Jr., Chairman, President and CEO, stated, "The Company
turned in a solid performance and is gaining momentum as we head into the
second quarter. Our margin is responding well to rising rates, evidenced by
a 17 basis point improvement over the fourth quarter of 2004. Loan growth
picked up during the latter half of the first quarter and credit quality
remains at historically strong levels. Expansion into the
Alachua/Gainesville market adds tremendous growth potential to our franchise,
and we look forward to associates of First National Bank of Alachua joining
the Capital City team."
Net interest income in the first quarter increased $5.1 million, or 26.0%
compared to the first quarter of 2004, due to earning asset growth reflective
of the two acquisitions in 2004, strong loan growth throughout 2004 in
existing markets, and a slight improvement in the net interest margin. The
net interest margin increased 4 basis points from the first quarter of 2004
to a level of 4.92%, attributable to a 43 basis point improvement in earning
asset yields partially offset by higher cost of funds of 39 basis points.
Compared to the fourth quarter of 2004, taxable equivalent net interest
income increased $216,000, or .09%, and the margin improved by 17 basis
points. This was a result of higher asset yields and growth in the loan
portfolio, partially offset by a slightly higher cost of funds. Both earning
asset yields and funding costs increased during the first quarter as a result
of the continued rate hikes by the Federal Reserve.
2
Provision for loan losses of $410,000 for the quarter was lower than the
first quarter of 2004 due to a lower level of net charge-offs. Net charge-
offs totaled $407,000, or .09% of average loans for the quarter compared to
$977,000, or .29% for the first quarter of 2004. At quarter-end the
allowance for loan losses was .87% of outstanding loans and provided coverage
of 302% of nonperforming loans.
Noninterest income increased $1.2 million, or 11.9%, from the first quarter
of 2004 primarily due to higher deposit service charge fees, asset management
fees, and interchange fees. The increase in deposit service charge fees is
due to the growth in deposit accounts reflective of the two acquisitions, a
fee structure change implemented in mid 2004, and an increase in NSF/OD fees
due to processing improvements implemented in the fourth quarter. The
improvement in asset management fees is due to an increase in trust assets
under management reflective of assets acquired from Synovus Trust Company
late in the first quarter of 2004 and growth in new business within existing
markets. The increase in interchange fees is reflective of growth in
merchant card processing volume. Noninterest income was 1.9% of average
assets and represented 31.1% of operating revenue. This compares to 2.2% and
33.6%, respectively, for the first quarter of 2004.
Noninterest expense grew by $4.2 million, or 19.9%, compared to the first
quarter of 2004. Higher expense for compensation, occupancy, and advertising
were the primary reasons for the increase. The increase in compensation was
driven by higher associate salaries, reflecting the integration of associates
from the two acquisitions in 2004 and higher performance based compensation.
The increase in occupancy was driven by higher expense for depreciation,
maintenance/repair, utilities, and property taxes, primarily attributable to
the increase in the number of banking offices. The increase in advertising
expense is reflective of marketing expenses to support the new free checking
product introduced in the first quarter of 2005.
Average earning assets for the quarter increased $412.6 million, or 25.2%,
over the comparable quarter in 2004. The increase in earning assets is
reflective of increases in average investment securities ($21.6 million) and
average loans ($470.0 million) primarily associated with the two acquisitions
integrated in 2004. Strong loan growth in existing markets throughout 2004
also contributed to the increase. Partially offsetting the increase in
average loans and investment securities was a decrease in overnight funds
sold of $79.0 million, or 78.0%.
Nonperforming assets of $5.6 million increased from the first quarter of 2004
by $2.7 million and represented .31% of total loans and other real estate at
quarter-end. This compares to .20% and .29%, respectively, for the first and
fourth quarters of 2004. The increase in the level of nonperforming assets
is due to a higher level of non-accrual loans primarily reflective of one
large commercial real estate loan that is in the process of foreclosure.
Management expects no significant loss upon the disposition of this asset.
Average total deposits increased $390.2 million, or 26.8%, from the first
quarter of 2004 driven by a $258.7 million increase in nonmaturity deposits
and a $131.6 million increase in certificates of deposits. These increases
are primarily reflective of the two acquisitions integrated in 2004.
The Company ended the first quarter with approximately $1.0 million in
average net overnight funds purchased as compared to $84.3 million net
overnight funds sold in the first quarter of 2004. The significant decline
is primarily reflective of cash used to fund acquisitions, loan growth, and a
slight deposit run-off associated with the two acquisitions closed in 2004.
3
ABOUT CAPITAL CITY BANK
Capital City Bank Group, Inc. is a $2.35 billion financial services company
headquartered in Tallahassee, Florida, providing traditional deposit and
credit services, asset management, trust, mortgage banking, bankcards, data
processing, and securities brokerage services. Founded in 1895, Capital City
Bank has 60 banking offices, five mortgage lending offices, 74 ATMs, and 11
Bank 'N Shop locations in Florida, Georgia and Alabama. For more information
about Capital City Bank Group, Inc. visit us on the Web at
http://www.ccbg.com.
FORWARD-LOOKING STATEMENTS
"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, 2004, 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.
4
CAPITAL CITY BANK GROUP, INC.
CONSOLIDATED STATEMENT OF INCOME
Unaudited
- ----------------------------------------------------------------------------------------------------------------
2005 20034
--------- --------------------------------------------
First Fourth Third Second First
(Dollars in thousands, except per share data) Quarter Quarter Quarter Quarter Quarter
- ----------------------------------------------------------------------------------------------------------------
INTEREST INCOME
Interest and Fees on Loans $ 28,842 28,097 23,316 22,922 21,272
Interest on Investment Securities 1,473 1,485 1,197 1,227 1,176
Interest on Funds Sold 159 348 147 116 222
- ----------------------------------------------------------------------------------------------------------------
Total Interest Income 30,474 29,930 24,660 24,265 22,670
- ----------------------------------------------------------------------------------------------------------------
INTEREST EXPENSE
Interest on Deposits 4,309 4,102 2,434 2,385 2,394
Interest on Short-term Borrowings 450 402 332 249 287
Interest on Subordinated Note Payable 441 294 - - -
Interest on Long-term Borrowings 720 836 642 587 497
- ----------------------------------------------------------------------------------------------------------------
Total Interest Expense 5,920 5,634 3,408 3,221 3,178
- ----------------------------------------------------------------------------------------------------------------
Net Interest Income 24,554 24,296 21,252 21,044 19,492
Provision for Loan Losses 410 300 300 580 961
- ----------------------------------------------------------------------------------------------------------------
Net Interest Income after Provision for Loan Losses 24,144 23,996 20,952 20,464 18,531
================================================================================================================
NONINTEREST INCOME
Service Charge Revenue 4,348 4,716 4,487 4,427 3,944
Data Processing Revenue 607 640 652 703 633
Fees for Trust Services 1,112 1,281 1,035 950 741
Retail Brokerage Fees 299 324 316 396 364
Investment Sec Gain (Losses) - 7 (13) 19 -
Mortgage Banking Revenue 763 722 806 986 694
Merchant Fees 1,564 1,379 1,230 1,278 1,248
Interchange Fees 491 458 537 660 574
Gain on Sale of Credit Cards - 324 6,857 - -
ATM/Debit Card Fees 538 549 494 482 481
Other 1,338 1,520 1,320 1,130 1,202
- ----------------------------------------------------------------------------------------------------------------
Total Noninterest Income 11,060 11,920 17,721 11,031 9,881
================================================================================================================
NONINTEREST EXPENSE
Compensation 12,560 11,830 10,966 10,809 10,740
Premises 1,937 1,880 1,828 1,749 1,617
FF&E 2,112 2,179 2,174 1,977 2,063
Intangible Amortization 1,196 1,151 921 926 826
Other 7,462 7,877 5,744 6,140 5,829
- ----------------------------------------------------------------------------------------------------------------
Total Noninterest Expense 25,267 24,917 21,633 21,601 21,075
================================================================================================================
OPERATING PROFIT 9,937 10,999 17,040 9,894 7,337
Provision for Income Taxes 3,560 3,737 6,221 3,451 2,490
- ----------------------------------------------------------------------------------------------------------------
NET INCOME $ 6,377 7,262 10,819 6,443 4,847
================================================================================================================
PER SHARE DATA
Basic Earnings $ 0.45 0.51 0.82 0.48 0.37
Diluted Earnings 0.45 0.51 0.82 0.48 0.37
Cash Dividends 0.190 0.190 0.180 0.180 0.180
AVERAGE SHARES
Basic 14,160 13,955 13,283 13,274 13,262
Diluted 14,166 13,961 13,287 13,277 13,286
================================================================================================================
5
CAPITAL CITY BANK GROUP, INC.
CONSOLIDATED STATEMENT OF FINANCIAL CONDITION
Unaudited
================================================================================================================
2005 2004
---------- --------------------------------------------
First Fourth Third Second First
(Dollars in thousands) Quarter Quarter Quarter Quarter Quarter
- ----------------------------------------------------------------------------------------------------------------
ASSETS
Cash and Due From Banks $ 92,868 87,039 90,458 97,154 93,427
Funds Sold 57,115 74,506 47,352 107,399 90,469
- ----------------------------------------------------------------------------------------------------------------
Total Cash and Cash Equivalents 149,983 161,545 137,810 204,553 183,896
Investment Securities, Available-for-Sale 190,945 210,240 156,675 183,732 188,763
Loans, Net of Unearned
Commercial & Industrial 196,632 206,474 187,862 187,530 185 237
Real Estate Construction 151,143 140,190 119,248 108,422 96,285
Real Estate Mortgage 639,637 655,426 473,874 466,437 449,677
Real Estate Residential 437,520 425,765 375,109 348,917 340,729
Real Estate Home Equity 151,464 150,061 145,408 133,729 119,496
Consumer 223,145 222,207 212,847 216,553 216,094
Credit Card 48 41 170 22,636 22,713
Other Loans 42,046 24,549 21,530 32,572 30,988
Overdrafts 2,168 4,112 4,602 4,701 4,585
- ----------------------------------------------------------------------------------------------------------------
Total Loans, Net of Unearned 1,843,803 1,828,825 1,540,650 1,521,497 1,465,804
Allowance for Loan Losses (16,040) (16,037) (12,328) (13,657) (13,720)
- ----------------------------------------------------------------------------------------------------------------
Loans, Net 1,827,763 1,812,788 1,528,322 1,507,840 1,452,084
Premises and Equipment 60,443 58,963 56,281 56,263 56,394
Intangible Assets 79,139 80,305 39,720 40,608 41,512
Other Assets 40,819 40,172 32,985 33,834 34,604
- ----------------------------------------------------------------------------------------------------------------
Total Other Assets 180,401 179,440 128,986 130,705 132,510
- ----------------------------------------------------------------------------------------------------------------
Total Assets $2,349,092 2,364,013 1,951,793 2,026,830 1,957,253
================================================================================================================
LIABILITIES
Deposits:
Noninterest Bearing Deposits $ 555,758 566,991 518,352 520,118 482,703
NOW Accounts 400,816 338,932 285,851 320,460 294,726
Money Market Accounts 250,433 270,095 209,262 214,815 222,298
Regular Savings Accounts 148,578 147,348 129,461 130,822 128,767
Certificates of Deposit 533,773 571,520 427,621 426,521 443,172
- ----------------------------------------------------------------------------------------------------------------
Total Deposits 1,889,358 1,894,886 1,570,547 1,612,736 1,571,666
Short-Term Borrowings 78,593 96,014 76,216 127,012 112,343
Subordinated Note Payable 30,928 30,928 - - -
Other Long-Term Borrowings 67,879 68,453 62,930 58,427 49,950
Other Liabilities 22,236 16,932 23,031 18,934 16,366
- ----------------------------------------------------------------------------------------------------------------
Total Liabilities 2,088,994 2,107,213 1,732,724 1,817,109 1,750,325
- ----------------------------------------------------------------------------------------------------------------
SHAREOWNERS' EQUITY
Common Stock 142 142 133 133 132
Additional Paid-in-Capital 52,772 52,363 18,411 17,922 17,788
Retained Earnings 208,334 204,648 200,073 191,645 187,592
Accumulated Other Comprehensive Income (1,150) (353) 452 21 1,416
- ----------------------------------------------------------------------------------------------------------------
Total Shareowners' Equity 260,098 256,800 219,069 209,721 206,928
- ----------------------------------------------------------------------------------------------------------------
Total Liabilities and Shareowners' Equity $2,349,092 2,364,013 1,951,793 2,026,830 1,957,253
================================================================================================================
OTHER BALANCE SHEET DATA
Earning Assets $2,091,863 2,113,571 1,744,677 1,812,628 1,745,036
Intangible Assets
Goodwill 54,371 54,341 19,657 19,656 19,633
Deposit Base 22,689 23,778 18,897 19,786 20,683
Other 2,079 2,189 1,166 1,166 1,196
Interest Bearing Liabilities 1,511,000 1,523,290 1,191,341 1,278,057 1,251,256
- ----------------------------------------------------------------------------------------------------------------
Book Value Per Diluted Share $ 18.36 18.13 16.48 15.80 15.54
Tangible Book Value Per Diluted Share 12.78 12.46 13.50 12.74 12.43
- ----------------------------------------------------------------------------------------------------------------
Actual Basic Shares Outstanding 14,162 14,155 13,285 13,275 13,273
Actual Diluted Shares Outstanding 14,164 14,161 13,289 13,277 13,312
================================================================================================================
CAPITAL CITY BANK GROUP, INC.
ALLOWANCE FOR LOAN LOSSES
AND NONPERFORMING ASSETS
Unaudited
================================================================================================================
2005 2004
---------- --------------------------------------------
First Fourth Third Second First
(Dollars in thousands) Quarter Quarter Quarter Quarter Quarter
- ----------------------------------------------------------------------------------------------------------------
ALLOWANCE FOR LOAN LOSSES
Balance at Beginning of Period $ 16,037 12,328 13,657 13,720 12,429
Acquired Reserves - 4,400 - 6 1,307
Reserve Reversal - Credit Card - - (800) - -
Provision for Loan Losses 410 300 300 580 961
Net Charge-offs 407 991 829 649 977
- ----------------------------------------------------------------------------------------------------------------
Balance at End of Period $ 16,040 16,037 12,328 13,657 13,720
================================================================================================================
As a % of Loans 0.87% 0.88 0.80 0.90 0.94
As a % of Nonperforming Loans 302.13 345.18 261.91 452.82 717.20
As a % of Nonperforming Assets 284.25 304.25 220.10 334.73 459.63
================================================================================================================
CHARGE-OFFS
Commercial, Financial and Agricultural $ 88 234 187 286 167
Real Estate - Construction - - - - -
Real Estate - Mortgage 4 9 - - 39
Real Estate - Residential 25 78 19 11 83
Consumer 718 1,015 998 885 1,047
- ----------------------------------------------------------------------------------------------------------------
Total Charge-offs $ 835 1,336 1,204 1,182 1,336
================================================================================================================
RECOVERIES
Commercial, Financial and Agricultural $ 9 34 10 24 12
Real Estate - Construction - - - - -
Real Estate - Mortgage - - 14 - -
Real Estate - Residential 2 12 1 176 -
Consumer 417 299 350 333 347
- ----------------------------------------------------------------------------------------------------------------
Total Recoveries $ 428 345 375 533 359
================================================================================================================
NET CHARGE-OFFS $ 407 991 829 649 977
================================================================================================================
Net charge-offs as a % of Average Loans <F1> 0.09% 0.22 0.22 0.18 0.29
================================================================================================================
RISK ELEMENT ASSETS
Nonaccruing Loans $ 5,309 4,646 4,707 3,016 1,913
Restructured - - - - -
- ----------------------------------------------------------------------------------------------------------------
Total Nonperforming Loans 5,309 4,646 4,707 3,016 1,913
Other Real Estate 334 625 894 1,064 1,072
- ----------------------------------------------------------------------------------------------------------------
Total Nonperforming Assets $ 5,643 5,271 5,601 4,080 2,985
================================================================================================================
Past Due Loans 90 Days or More $ 298 605 196 330 1,351
================================================================================================================
Nonperforming Loans as a % of Loans 0.29% 0.25 0.31 0.20 0.13
Nonperforming Assets as a % of
Loans and Other Real Estate 0.31 0.29 0.36 0.27 0.20
Nonperforming Assets as a % of Capital <F2> 2.04 1.93 2.42 1.83 1.35
================================================================================================================
<FN>
<F1> Annualized
<F2> Capital includes allowance for loan losses.
</FN>
7
CAPITAL CITY BANK GROUP, INC.
AVERAGE BALANCE AND INTEREST RATES <F1>
Unaudited
================================================================================================================================
First Quarter of 2005 Fourth Quarter 2004 Third Quarter 2004
------------------------- ------------------------- ------------------------
Average Average Average Average Average Average
(Dollars in thousands) Balance Interest Rate Balance Interest Rate Balance Interest Rate
- ------------------------------------------------------------------------ ------------------------- ------------------------
ASSETS:
Loans, Net of Unearned Interest $1,827,327 $28,920 6.42% 1,779,736 28,180 6.30 1,524,401 23,345 6.09
Investment Securities
Taxable Investment Securities 153,543 1,090 2.85 152,049 1,029 2.71 118,903 729 2.45
Tax-Exempt Investment Securities 43,928 586 5.33 51,688 696 5.38 51,768 716 5.53
- --------------------------------------------------------------------------------------------------------------------------------
Total Investment Securities 197,471 1,676 3.40 203,737 1,725 3.39 170,671 1,445 3.38
Funds Sold 22,251 159 2.85 82,638 348 1.65 39,636 147 1.45
- --------------------------------------------------------------------------------------------------------------------------------
Total Earning Assets 2,047,049 $30,755 6.09% 2,066,111 30,253 5.83 1,734,708 24,937 5.72
============== ============ ============
Cash and Due From Banks 97,322 101,959 90,010
Allowance For Loan Losses (16,167) (15,813) (13,029)
Other Assets 178,603 170,613 129,683
- -------------------------------------------------------- --------- ---------
Total Assets $2,306,807 2,322,870 1,941,372
======================================================== ========= =========
LIABILITIES:
Interest Bearing Deposits
NOW Accounts $ 359,151 447 0.50% 333,839 335 0.40 280,630 153 0.22
Money Market Accounts 251,849 625 1.01 267,710 467 0.69 212,426 245 0.46
Savings Accounts 147,676 75 0.21 144,967 72 0.20 130,330 32 0.10
Time Deposits 552,069 3,162 2.32 553,435 3,228 2.32 429,702 2,004 1.86
- --------------------------------------------------------------------------------------------------------------------------------
Total Interest Bearing Deposits 1,310,745 4,309 1.33 1,299,951 4,102 1.25 1,053,088 2,434 0.92
Short-Term Borrowings 79,582 450 2.29 92,193 402 1.74 96,146 332 1.37
Subordinated Note Payable 30,928 441 5.79 20,507 294 5.71 0 0 0.00
Other Long-Term Borrowings 68,200 720 4.28 77,041 836 4.32 59,837 642 4.27
- --------------------------------------------------------------------------------------------------------------------------------
Total Interest Bearing Liabilities 1,489,455 $ 5,920 1.61% 1,489,692 5,634 1.50 1,209,071 3,408 1.12
============== ============ ============
Noninterest Bearing Deposits 536,633 553,637 492,136
Other Liabilities 19,773 30,768 22,892
- -------------------------------------------------------- --------- ---------
Total Liabilities 2,045,861 2,074,097 1,724,099
SHAREOWNERS' EQUITY: $ 260,946 248,773 217,273
- -------------------------------------------------------- --------- ---------
Total Liabilities and Shareowners' Equity $2,306,807 2,322,870 1,941,372
======================================================== ========= =========
Interest Rate Spread $24,835 4.48% 24,619 4.33 21,529 4.60
======================================================================== ============ ============
Interest Income and Rate Earned <F2> $30,755 6.09 30,253 5.83 24,937 5.72
Interest Expense and Rate Paid <F3> 5,920 1.17 5,634 1.08 3,408 0.78
- ------------------------------------------------------------------------ ------------ ------------
Net Interest Margin $24,835 4.92% 24,619 4.75 21.529 4.94
======================================================================== ============ ============
<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.
<F3> Rate calculated based on average interest bearing liabilities.
</FN>
8
CAPITAL CITY BANK GROUP, INC.
AVERAGE BALANCE AND INTEREST RATES <F1>
Unaudited
===================================================================================================
Second Quarter of 2004 First Quarter 2004
------------------------- ------------------------
Average Average Average Average
(Dollars in thousands) 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
Investment Securities
Taxable Investment Securities 134,634 745 2.21 121,702 635 2.09
Tax-Exempt Investment Securities 50,191 732 5.83 54,274 821 6.06
- ---------------------------------------------------------------------------------------------------
Total Investment Securities 184,825 1,477 3.20 175,976 1,456 3.31
Funds Sold 45,688 116 1.01 101,286 222 0.87
- ---------------------------------------------------------------------------------------------------
Total Earning Assets 1,721,655 $24,554 5.74% 1,634,468 22,988 5.66
============== ============
Cash and Due From Banks 89,921 90,327
Allowance For Loan Losses (13,804) (12,725)
Other Assets 131,713 118,426
- -------------------------------------------------------- ---------
Total Assets $1,929,485 1,830,496
======================================================== =========
LIABILITIES:
Interest Bearing Deposits
NOW Accounts $ 283,297 121 0.17% 271,878 124 0.18
Money Market Accounts 215,746 239 0.44 215,078 239 0.45
Savings Accounts 129,684 32 0.10 115,985 28 0.10
Time Deposits 433,514 1,993 1.85 420,501 2,003 1.92
- ---------------------------------------------------------------------------------------------------
Total Interest Bearing Deposits 1,062,241 2,385 0.90 1,023,442 2,394 0.94
Short-Term Borrowings 109,723 249 0.91 104,406 287 1.11
Subordinated Note Payable 0 0 0.00 0 0 0.00
Other Long-Term Borrowings 53,752 587 4.39 47,023 497 4.25
- ---------------------------------------------------------------------------------------------------
Total Interest Bearing Liabilities 1,225,716 $ 3,221 1.06% 1,174,871 3,178 1.09
============== ============
Noninterest Bearing Deposits 476,389 433,718
Other Liabilities 17,169 15,512
- -------------------------------------------------------- ---------
Total Liabilities 1,719,274 1,624,101
SHAREOWNERS' EQUITY: $ 210,211 206,395
- -------------------------------------------------------- ---------
Total Liabilities and Shareowners' Equity $1,929,485 1,830,496
======================================================== =========
Interest Rate Spread $21,333 4.68% 19,810 4.57
======================================================================== ============
Interest Income and Rate Earned <F2> $24,554 5.74 22,988 5.66
Interest Expense and Rate Paid <F3> 3,221 0.75 3,178 0.78
- ------------------------------------------------------------------------ ------------
Net Interest Margin $21,333 4.99% 19,810 4.88
======================================================================== ============
<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.
<F3> Rate calculated based on average interest bearing liabilities.
</FN>
9