Exhibit 99.1 Capital City Bank Group, Inc.'s Press Release, dated
July 26, 2005
[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 July 26, 2005
CAPITAL CITY BANK GROUP, INC. REPORTS
SECOND QUARTER EARNINGS OF
$0.44 PER DILUTED SHARE, UP 15.8% FROM 2004
HIGHLIGHTS
* Quarterly earnings totaled $7.9 million, or $0.44 per share, an increase
of 22.1% and 15.8%, respectively, over the second quarter of 2004.
* Strong growth in operating revenues reflects 28.9% growth in net interest
income and 9.2% increase in noninterest income.
* Improvement in net interest margin as reflected by an 8 basis point
improvement over the second quarter of 2004 and a 15 basis point
improvement over the first quarter of 2005 - second quarter net interest
margin of 5.07% continues to significantly exceed peer group.
* Lower loan loss provision due to continued strong credit quality as
reflected by a nonperforming asset ratio of .30% and an annualized net
charge-off ratio of .08%.
* Consummated the acquisition of First Alachua Banking Corporation ($230.0
million in assets) in May 2005.
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)<F1> 2005 2005 2004 2005 2004
- -------------------------------------------------------------------------------------------------------------
EARNINGS
Net Income $ 7,868 6,377 6,443 14,245 11,290
Diluted Earnings Per Common Share 0.44 0.36 0.38 0.80 0.68
- -------------------------------------------------------------------------------------------------------------
PERFORMANCE
Return on Average Equity 11.35% 9.91 12.33 10.66 10.90
Return on Average Assets 1.28 1.12 1.34 1.21 1.21
Net Interest Margin 5.07 4.92 4.99 4.99 4.93
Noninterest Income as % of Operating Revenue 30.75 31.06 34.39 30.89 34.03
Efficiency Ratio 63.56 67.06 63.87 65.23 65.87
- -------------------------------------------------------------------------------------------------------------
CAPITAL ADEQUACY
Tier 1 Capital Ratio 11.96% 11.52 10.98 11.96 10.98
Total Capital Ratio 12.91 12.39 11.86 12.91 11.86
Leverage Ratio 9.28 9.03 8.34 9.28 8.34
Equity to Assets 11.23 11.07 10.35 11.23 10.35
1
Three Months Ended Six Months Ended
-------------------------------- --------------------
June 30, March 31, June 30, June 30, June 30,
(Dollars in thousands, except per share data)<F1> 2005 2005 2004 2005 2004
- -------------------------------------------------------------------------------------------------------------
ASSET QUALITY
Allowance as % of Non-Performing Loans 289.12% 302.13 452.82 289.12 452.82
Allowance as a % of Loans 0.85 0.87 0.90 0.85 0.90
Net Charge-Offs as % of Average Loans 0.08 0.09 0.18 0.08 0.23
Nonperforming Assets as % of Loans and ORE 0.30 0.31 0.27 0.30 0.27
- -------------------------------------------------------------------------------------------------------------
STOCK PERFORMANCE
High $ 33.46 33.60 34.52 33.60 36.44
Low 28.02 29.30 28.40 28.02 28.40
Close $ 32.32 32.41 31.67 32.32 31.67
Average Daily Trading Volume 23,792 21,025 15,367 22,442 12,889
- -------------------------------------------------------------------------------------------------------------
<FN>
<F1> All share and per share data have been restated to reflect the 5-for-4 stock split effective July 1, 2005.
</FN>
Capital City Bank Group, Inc. (NASDAQ: CCBG) reported earnings for the second
quarter totaling $7.9 million, or $0.44 per diluted share. This compares to
$6.4 million, or $0.38 per diluted share in the second quarter of 2004,
increases of 22.1% and 15.8%, respectively. Results include the acquisition
of the First National Bank of Alachua, which closed on May 20, 2005. The
Return on Average Assets was 1.28% and the Return on Average Equity was
11.35%, compared to 1.34% and 12.33%, respectively, for the comparable period
in 2004.
The growth in earnings was attributable to an increase in operating revenue
of $7.1 million, or 22.1%, and a decrease of $192,000, or 33.1% in the loan
loss provision, partially offset by an increase in noninterest expense of
$5.0 million, or 23.1%, and a higher income tax provision of $860,000, or
24.9%. The increase in operating revenues reflects a 28.9% increase in net
interest income and a 9.2% increase in noninterest income. Net interest
income increased as a result of earning asset growth and an improving net
interest margin. The lower loan loss provision is reflective of continued
strong credit quality. Higher deposit service charge fees, merchant fees and
other income drove the increase in noninterest income. The increase in
noninterest expense reflects higher operating costs associated with the
integration of two recent acquisitions, which added 12 new offices to the
Capital City franchise.
William G. Smith, Jr., Chairman, President and CEO, stated, "I am very
pleased with the quality of our earnings performance in the second quarter.
Strong loan growth, historically low credit costs and growing noninterest
income each contributed to the Company's strong performance. As interest
rates continue to rise, the short duration of our asset portfolios is having
a positive and significant impact on our net interest margin as asset yields
have increased 23 basis points over the first quarter and the net yield on
earning assets has risen 15 basis points. Our "Absolutely Free Checking"
strategy continues to produce excellent results and Capital City has momentum
as we move into the second half of 2005."
2
Taxable equivalent net interest income in the second quarter increased $6.1
million, or 28.4% and $2.6 million, or 10.3%, as compared to the second
quarter of 2004 and the first quarter of 2005, respectively. Improvement in
both periods reflects growth from acquisitions, continued strong loan growth
in existing markets, and an improvement in the net interest margin. The net
interest margin increased 8 basis points from the second quarter of 2004 and
15 basis points from the first quarter of 2005 to a level of 5.07%,
attributable to higher asset yields. Both earning asset yields and funding
costs increased during the second quarter as a result of the continued rate
hikes by the Federal Reserve.
Provision for loan losses of $388,000 for the quarter was lower than the
second quarter of 2004 due to a lower level of net charge-offs. Net charge-
offs totaled $362,000, or .08% of average loans for the quarter compared to
$649,000, or .18% for the second quarter of 2004. At quarter-end the
allowance for loan losses was .85% of outstanding loans and provided coverage
of 289% of nonperforming loans.
Noninterest income increased $1.0 million, or 9.2%, from the second quarter
of 2004 primarily due to higher deposit service charge fees, merchant fees,
and other income. The increase in deposit service charge fees is due to the
growth in deposit accounts, partially attributable to recent acquisitions, a
fee structure change implemented in mid-2004, and an increase in non-
sufficient funds (NSF) and overdraft fees due to increased NSF activity. The
improvement in merchant fees directly correlates with the growth in merchant
card processing volume. Noninterest income was 2.0% of average assets and
represented 30.8% of operating revenue. This compares to 2.3% and 34.4%,
respectively, for the second quarter of 2004. The reduction in noninterest
income relative to total operating revenue reflects the significant growth in
net interest income, which increased $6.1 million, or 28.9% over the period.
Noninterest expense grew by $5.0 million, or 23.1%, compared to the second
quarter of 2004. Higher expense for compensation, occupancy, professional
fees, intangible amortization, and merger expense were the primary reasons
for the increase. The increase in compensation was driven by higher expense
for associate salaries and benefits primarily reflective of the integration
of associates from the acquisitions in 2004 and 2005, and higher performance
based compensation. The increase in occupancy was driven by higher expense
for depreciation, maintenance and repair, and property taxes, primarily
attributable to the increase in the number of banking offices, and higher
expense for core processing and other software maintenance agreements. The
increase in professional fees is attributable to higher expense for external
audit fees. The increases in intangible amortization and merger expense are
reflective of the Company's recent acquisitions.
Average earning assets for the quarter increased $448.8 million, or 26.1%,
over the comparable quarter in 2004. The increase in earning assets is
primarily attributable to an increase in average loans of $441.5 million
reflecting acquisitions and strong organic loan growth. Excluding the
acquisition of First National Bank of Alachua, period-end loans increased
$81.9 million, or 4.4% over the first quarter of 2005.
3
Nonperforming assets of $6.2 million increased from the second quarter of
2004 by $2.1 million and represented .30% of total loans and other real
estate at quarter-end. This compares to .27% and .29%, respectively, for the
second and fourth quarters of 2004. The increase in the level of
nonperforming assets is primarily due to one large commercial real estate
loan for which the bank recently received a deed in lieu of foreclosure.
Management expects no significant loss upon the disposition of this asset.
Average total deposits increased $393.5 million, or 25.6% from the second
quarter of 2004, driven by a $279.1 million increase in nonmaturity deposits
and a $114.4 million increase in certificates of deposits. These increases
are primarily reflective of recent acquisitions.
The Company ended the second quarter with approximately $13.0 million in
average net overnight funds sold as compared to $25.0 million in net
overnight funds sold in the second quarter of 2004 and $1.0 million in net
overnight funds purchased for the prior quarter. The decline from the second
quarter of 2004 is primarily reflective of the Company's significant loan
growth. The improvement from the prior quarter is a result of the liquidity
generated in the acquisition of First National Bank of Alachua.
ABOUT CAPITAL CITY BANK
Capital City Bank Group, Inc. is a $2.63 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 68 banking offices, six mortgage lending offices, 79 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.
"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 2004 Six Months Ended
------------------ ---------------------------- June 30,
Second First Fourth Third Second ----------------
(Dollars in thousands, except per share data)<F1> Quarter Quarter Quarter Quarter Quarter 2005 2004
- ----------------------------------------------------------------------------------------------------------------------------
INTEREST INCOME
Interest and Fees on Loans $ 32,105 28,842 28,097 23,316 22,922 60,947 44,194
Interest on Investment Securities 1,447 1,473 1,485 1,197 1,227 2,920 2,403
Interest on Funds Sold 358 159 348 147 116 517 338
- ----------------------------------------------------------------------------------------------------------------------------
Total Interest Income 33,910 30,474 29,930 24,660 24,265 64,384 46,935
- ----------------------------------------------------------------------------------------------------------------------------
INTEREST EXPENSE
Interest on Deposits 4,618 4,309 4,102 2,434 2,385 8,927 4,779
Interest on Short-term Borrowings 734 450 402 332 249 1,184 536
Interest on Subordinated Note Payable 667 441 294 - - 1,108 -
Interest on Long-term Debt 769 720 836 642 587 1,489 1,084
- ----------------------------------------------------------------------------------------------------------------------------
Total Interest Expense 6,788 5,920 5,634 3,408 3,221 12,708 6,399
- ----------------------------------------------------------------------------------------------------------------------------
Net Interest Income 27,122 24,554 24,296 21,252 21,044 51,676 40,536
Provision for Loan Losses 388 410 300 300 580 798 1,541
- ----------------------------------------------------------------------------------------------------------------------------
Net Interest Income after Provision for Loan Losses 26,734 24,144 23,996 20,952 20,464 50,878 38,995
============================================================================================================================
NONINTEREST INCOME
Service Charge Revenue 5,035 4,348 4,716 4,487 4,427 9,383 8,371
Data Processing Revenue 650 607 640 652 703 1,257 1,336
Fees for Trust Services 1,013 1,112 1,281 1,035 950 2,125 1,691
Retail Brokerage Fees 313 299 324 316 396 612 759
Invest Sec Gain (Losses) - - 7 (13) 19 - 19
Mortgage Banking Revenue 1,036 763 722 806 986 1,799 1,680
Merchant Fees 1,532 1,564 1,379 1,230 1,278 3,096 2,526
Interchange Fees 535 491 458 537 660 1,026 1,234
Gain on Sale of Credit Cards - - 324 6,857 - - -
ATM/Debit Card Fees 536 538 549 494 482 1,074 964
Other 1,391 1,338 1,520 1,320 1,130 2,729 2,332
- ----------------------------------------------------------------------------------------------------------------------------
Total Noninterest Income 12,041 11,060 11,920 17,721 11,031 23,101 20,912
============================================================================================================================
NONINTEREST EXPENSE
Compensation 13,187 12,560 11,830 10,966 10,809 25,747 21,549
Premises 2,035 1,937 1,880 1,828 1,749 3,972 3,366
FF&E 2,192 2,112 2,179 2,174 1,977 4,304 4,040
Intangible Amortization 1,296 1,196 1,151 921 926 2,492 1,752
Other Expense 7,886 7,462 7,877 5,744 6,140 15,348 11,969
- ----------------------------------------------------------------------------------------------------------------------------
Total Noninterest Expense 26,596 25,267 24,917 21,633 21,601 51,863 42,676
============================================================================================================================
OPERATING PROFIT 12,179 9,937 10,999 17,040 9,894 22,116 17,231
Provision for Income Taxes 4,311 3,560 3,737 6,221 3,451 7,871 5,941
- ----------------------------------------------------------------------------------------------------------------------------
NET INCOME $ 7,868 6,377 7,262 10,819 6,443 14,245 11,290
============================================================================================================================
PER SHARE DATA <F1>
Basic Earnings $ 0.44 0.36 0.40 0.66 0.38 0.80 0.68
Diluted Earnings 0.44 0.36 0.40 0.66 0.38 0.80 0.68
Cash Dividends $ 0.152 0.152 0.152 0.144 0.144 0.304 0.288
AVERAGE SHARES <F1>
Basic 18,094 17,700 17,444 16,604 16,593 17,898 16,585
Diluted 18,102 17,708 17,451 16,609 16,596 17,909 16,589
============================================================================================================================
<FN>
<F1> All share and per share data have been restated to reflect the 5-for-4 stock split effective July 1, 2005.
</FN>
5
CAPITAL CITY BANK GROUP, INC.
CONSOLIDATED STATEMENT OF FINANCIAL CONDITION
Unaudited
===============================================================================================================
2005 2004
---------------------- ----------------------------------
Second First Fourth Third Second
(Dollars in thousands, except per share data)<F1> Quarter Quarter Quarter Quarter Quarter
- ---------------------------------------------------------------------------------------------------------------
ASSETS
Cash and Due From Banks $ 117,921 92,868 87,039 90,458 97,154
Funds Sold 59,062 57,115 74,506 47,352 107,399
- ---------------------------------------------------------------------------------------------------------------
Total Cash and Cash Equivalents 176,983 149,983 161,545 137,810 204,553
Investment Securities, Available-for-Sale 195,860 190,945 210,240 156,675 183,732
Loans, Net of Unearned
Commercial & Industrial 214,983 196,632 206,474 187,862 187,530
Real Estate Construction 148,462 151,143 140,190 119,248 108,422
Real Estate Mortgage 713,619 639,637 655,426 473,874 466,437
Real Estate Residential 519,441 437,520 425,765 375,109 348,917
Real Estate Home Equity 160,767 151,464 150,061 145,408 133,729
Consumer 242,922 223,145 222,207 212,847 216,553
Credit Card 49 48 41 170 22,636
Other Loans 43,217 42,046 24,549 21,530 32,572
Overdrafts 3,314 2,168 4,112 4,602 4,701
- ---------------------------------------------------------------------------------------------------------------
Total Loans, Net of Unearned 2,046,774 1,843,803 1,828,825 1,540,650 1,521,497
Allowance for Loan Losses (17,451) (16,040) (16,037) (12,328) (13,657)
- ---------------------------------------------------------------------------------------------------------------
Loans, Net 2,029,323 1,827,763 1,812,788 1,528,322 1,507,840
Premises and Equipment 69,294 60,443 58,963 56,281 56,263
Intangible Assets 113,081 79,139 80,305 39,720 40,608
Other Assets 45,344 40,819 40,172 32,985 33,834
- ---------------------------------------------------------------------------------------------------------------
Total Other Assets 227,719 180,401 179,440 128,986 130,705
- ---------------------------------------------------------------------------------------------------------------
Total Assets $2,629,885 2,349,092 2,364,013 1,951,793 2,026,830
===============================================================================================================
LIABILITIES
Deposits:
Noninterest Bearing Deposits $ 598,602 555,758 566,991 518,352 520,118
NOW Accounts 475,687 400,816 338,932 285,851 320,460
Money Market Accounts 287,601 250,433 270,095 209,262 214,815
Regular Savings Accounts 162,665 148,578 147,348 129,461 130,822
Certificates of Deposit 576,074 533,773 571,520 427,621 426,521
- ---------------------------------------------------------------------------------------------------------------
Total Deposits 2,100,629 1,889,358 1,894,886 1,570,547 1,612,736
Short-Term Borrowings 71,148 78,593 96,014 76,216 127,012
Subordinated Note Payable 62,887 30,928 30,928 - -
Other Long-Term Borrowings 73,144 67,879 68,453 62,930 58,427
Other Liabilities 26,655 22,236 16,932 23,031 18,934
- ---------------------------------------------------------------------------------------------------------------
Total Liabilities 2,334,463 2,088,994 2,107,213 1,732,724 1,817,109
- ---------------------------------------------------------------------------------------------------------------
SHAREOWNERS' EQUITY
Common Stock 149 142 142 133 133
Additional Paid-in-Capital 82,619 52,772 52,363 18,411 17,922
Retained Earnings 213,352 208,334 204,648 200,073 191,645
Accumulated Other Comprehensive Income (698) (1,150) (353) 452 21
- ---------------------------------------------------------------------------------------------------------------
Total Shareowners' Equity 295,422 260,098 256,800 219,069 209,721
- ---------------------------------------------------------------------------------------------------------------
Total Liabilities and Shareowners' Equity $2,629,885 2,349,092 2,364,013 1,951,793 2,026,830
===============================================================================================================
OTHER BALANCE SHEET DATA
Earning Assets $2,301,696 2,091,863 2,113,571 1,744,677 1,812,628
Intangible Assets
Goodwill 84,511 54,371 54,341 19,657 19,656
Deposit Base 26,598 22,689 23,778 18,897 19,786
Other 1,972 2,079 2,186 1,166 1,166
Interest Bearing Liabilities 1,709,206 1,511,000 1,523,290 1,191,341 1,278,057
- ---------------------------------------------------------------------------------------------------------------
Book Value Per Diluted Share $ 15.87 14.69 14.51 13.19 12.64
Tangible Book Value Per Diluted Share 9.79 10.22 9.97 10.80 10.19
- ---------------------------------------------------------------------------------------------------------------
Actual Basic Shares Outstanding 18,614 17,703 17,694 16,607 16,593
Actual Diluted Shares Outstanding 18,617 17,705 17,701 16,612 16,597
===============================================================================================================
<FN>
<F1> All share and per share data have been restated to reflect the 5-for-4 stock split effective July 1, 2005.
</FN>
6
CAPITAL CITY BANK GROUP, INC.
ALLOWANCE FOR LOAN LOSSES
AND NONPERFORMING ASSETS
Unaudited
================================================================================================================
2005 2004
--------------------- ----------------------------------
First Fourth Third Second
(Dollars in thousands) Quarter Quarter Quarter Quarter
- ----------------------------------------------------------------------------------------------------------------
ALLOWANCE FOR LOAN LOSSES
Balance at Beginning of Period $16,040 16,037 12,328 13,657 13,720
Acquired Reserves 1,385 - 4,400 - 6
Reserve Reversal - Credit Card - - - (800) -
Provision for Loan Losses 388 410 300 300 580
Net Charge-offs 362 407 991 829 649
- ----------------------------------------------------------------------------------------------------------------
Balance at End of Period $17,451 16,040 16,037 12,328 13,657
================================================================================================================
As a % of Loans 0.85% 0.87 0.88 0.80 0.90
As a % of Nonperforming Loans 289.12 302.13 345.18 261.91 452.82
As a % of Nonperforming Assets 280.65 284.25 304.25 220.10 334.73
================================================================================================================
CHARGE-OFFS
Commercial, Financial and Agricultural $ 302 88 234 187 286
Real Estate - Construction - - - - -
Real Estate - Mortgage 2 4 9 - -
Real Estate - Residential 37 25 78 19 11
Consumer 536 718 1,015 998 885
- ----------------------------------------------------------------------------------------------------------------
Total Charge-offs $ 877 835 1,336 1,204 1,182
================================================================================================================
RECOVERIES
Commercial, Financial and Agricultural $ 98 9 34 10 24
Real Estate - Construction - - - - -
Real Estate - Mortgage - - - 14 -
Real Estate - Residential 14 2 12 1 176
Consumer 403 417 299 350 333
- ----------------------------------------------------------------------------------------------------------------
Total Recoveries $ 515 428 345 375 533
================================================================================================================
NET CHARGE-OFFS $ 362 407 991 829 649
================================================================================================================
Net charge-offs as a % of Average Loans <F1> 0.08% 0.09 0.22 0.22 0.18
================================================================================================================
RISK ELEMENT ASSETS
Nonaccruing Loans $ 6,036 5,309 4,646 4,707 3,016
Restructured - - - - -
- ----------------------------------------------------------------------------------------------------------------
Total Nonperforming Loans 6,036 5,309 4,646 4,707 3,016
Other Real Estate 182 334 625 894 1,064
- ----------------------------------------------------------------------------------------------------------------
Total Nonperforming Assets $ 6,218 5,643 5,271 5,601 4,080
================================================================================================================
Past Due Loans 90 Days or More $ 562 298 605 196 330
================================================================================================================
Nonperforming Loans as a % of Loans 0.29% 0.29 0.25 0.31 0.20
Nonperforming Assets as a % of
Loans and Other Real Estate 0.30 0.31 0.29 0.36 0.27
Nonperforming Assets as a % of Capital <F2> 1.99 2.04 1.93 2.42 1.83
=================================================================================================================
<FN>
<F1> Annualized
<F2> Capital includes allowance for loan losses.
</FN>
7
AVERAGE BALANCE AND INTEREST RATES <F1>
Unaudited
- ---------------------------------------------------------------------------------------------------------------------------------
Second Quarter of 2005 First Quarter 2005 Fourth 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 $1,932,637 $32,200 6.68% 1,827,327 28,920 6.42 1,779,736 28,180 6.30
Investment Securities
Taxable Investment Securities 149,958 1,113 2.96 153,543 1,090 2.85 152,049 1,029 2.71
Tax-Exempt Investment Securities 41,316 513 4.97 43,928 586 5.33 51,688 696 5.38
- ----------------------------------------------------------------------------------------------------------------------------------
Total Investment Securities 191,274 1,626 3.40 197,471 1,676 3.40 203,737 1,725 3.39
Funds Sold 46,572 358 3.04 22,251 159 2.85 82,638 348 1.65
- ----------------------------------------------------------------------------------------------------------------------------------
Total Earning Assets 2,170,483 $34,184 6.32% 2,047,049 30,755 6.09 2,066,111 30,253 5.83
============== ============ ============
Cash and Due From Banks 104,336 97,322 101,959
Allowance For Loan Losses (16,998) (16,167) (15,813)
Other Assets 200,967 178,603 170,613
- -------------------------------------------------------- --------- ---------
Total Assets $2,458,788 2,306,807 2,322,870
======================================================== ========= =========
LIABILITIES:
Interest Bearing Deposits
NOW Accounts $ 413,799 560 0.54 359,151 447 0.50% 333,839 335 0.40
Money Market Accounts 270,195 830 1.23 251,849 625 1.01 267,710 467 0.69
Savings Accounts 155,286 75 0.19 147,676 75 0.21 144,967 72 0.20
Time Deposits 547,919 3,153 2.31 552,069 3,162 2.32 553,435 3,228 2.32
- ----------------------------------------------------------------------------------------------------------------------------------
Total Interest Bearing Deposits 1,387,199 4,618 1.34 1,310,745 4,309 1.33 1,299,951 4,102 1.25
Short-Term Borrowings 108,508 734 2.71 79,582 450 2.29 92,193 402 1.74
Subordinated Note Payable 45,681 667 5.86 30,928 441 5.79 20,507 294 5.71
Other Long-Term Borrowings 68,975 769 4.47 68,200 720 4.28 77,041 836 4.32
- ----------------------------------------------------------------------------------------------------------------------------------
Total Interest Bearing Liabilities 1,610,363 $ 6,788 1.69% 1,489,455 5,920 1.61 1,489,692 5,634 1.50
============== ============ ============
Noninterest Bearing Deposits 544,945 536,633 553,637
Other Liabilities 25,373 19,773 30,768
- -------------------------------------------------------- --------- ---------
Total Liabilities 2,180,681 2,045,861 2,074,097
SHAREOWNERS' EQUITY: $ 278,107 260,946 248,773
- -------------------------------------------------------- --------- ---------
Total Liabilities and Shareowners' Equity $2,458,788 2,306,807 2,322,870
======================================================== ========= =========
Interest Rate Spread $27,396 4.63% 24,835 4.48 24,619 4.33
======================================================================== ============ ============
Interest Income and Rate Earned <F2> $34,184 6.32 30,755 6.09 30,253 5.83
Interest Expense and Rate Paid <F3> 6,788 1.25 5,920 1.17 5,634 1.08
- ------------------------------------------------------------------------ ------------ ------------
Net Interest Margin $27,396 5.07% 24,835 4.92 24,619 4.75
======================================================================== ============ ============
<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
AVERAGE BALANCE AND INTEREST RATES <F1>
Unaudited
- ----------------------------------------------------------------------------------------------------
Third Quarter of 2004 Second Quarter 2004
------------------------- -------------------------
Average Average Average Average
(Dollars in thousands) Balance Interest Rate Balance Interest Rate
- -------------------------------------------- ------------------------- -------------------------
ASSETS:
Loans, Net of Unearned Interest $1,152,401 $23,345 6.09% 1,491,142 22,961 6.19
Investment Securities
Taxable Investment Securities 118,903 729 2.45 134,634 745 2.21
Tax-Exempt Investment Securities 51,768 716 5.53 50,191 732 5.83
- ---------------------------------------------------------------------------------------------------
Total Investment Securities 170,671 1,445 3.38 184,825 1,477 3.20
Funds Sold 39,636 147 1.45 45,688 116 1.01
- ---------------------------------------------------------------------------------------------------
Total Earning Assets 1,734,708 $24,937 5.72% 1,721,655 24,554 5.74
============== ============
Cash and Due From Banks 90,010 89,921
Allowance For Loan Losses (13,029) (13,804)
Other Assets 129,683 131,713
- -------------------------------------------------------- ---------
Total Assets $1,941,372 1,929,485
======================================================== =========
LIABILITIES:
Interest Bearing Deposits
NOW Accounts $ 280,630 153 0.22% 283,297 121 0.17
Money Market Accounts 212,426 245 0.46 215,746 239 0.44
Savings Accounts 130,330 32 0.10 129,684 32 0.10
Time Deposits 429,702 2,004 1.86 433,514 1,993 1.85
- ---------------------------------------------------------------------------------------------------
Total Interest Bearing Deposits 1,053,088 2,434 0.92 1,062,241 2,385 0.90
Short-Term Borrowings 96,146 332 1.37 109,723 249 0.91
Subordinated Note Payable 0 0 0.00 0 0 0.00
Other Long-Term Borrowings 59,837 642 4.27 53,752 587 4.39
- ---------------------------------------------------------------------------------------------------
Total Interest Bearing Liabilities 1,209,071 $ 3,408 1.12% 1,225,716 3,221 1.06
============== ============
Noninterest Bearing Deposits 492,136 476,389
Other Liabilities 22,892 17,169
- -------------------------------------------------------- ---------
Total Liabilities 1,724,099 1,719,274
SHAREOWNERS' EQUITY: $ 217,273 210,211
- -------------------------------------------------------- ---------
Total Liabilities and Shareowners' Equity $1,941,372 1,929,485
======================================================== =========
Interest Rate Spread $21,529 4.60% 21,333 4.68
======================================================================== ============
Interest Income and Rate Earned <F2> $24,937 5.72 24,554 5.74
Interest Expense and Rate Paid <F3> 3,408 0.78 3,221 0.75
- ------------------------------------------------------------------------ ------------
Net Interest Margin $21,529 4.94% 21,333 4.99
======================================================================== ============
<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
AVERAGE BALANCE AND INTEREST RATES <F1>
Unaudited
- ----------------------------------------------------------------------------------------------------
Six Months Ended Six Months Ended
June 30, 2005 June 30, 2004
------------------------- -------------------------
Average Average Average Average
(Dollars in thousands) Balance Interest Rate Balance Interest Rate
- -------------------------------------------- ------------------------- -------------------------
ASSETS:
Loans, Net of Unearned Interest $1,880,272 $61,120 6.56% 1,424,175 44,271 6.25
Investment Securities
Taxable Investment Securities 151,740 2,203 2.91 128,167 1,380 2.15
Tax-Exempt Investment Securities 42,615 1,099 5.16 52,233 1,554 5.95
- ---------------------------------------------------------------------------------------------------
Total Investment Securities 194,355 3,302 3.40 180,400 2,934 3.26
Funds Sold 34,479 517 2.98 73,487 388 0.91
- ---------------------------------------------------------------------------------------------------
Total Earning Assets 2,109,106 $64,939 6.21% 1,678,062 47,543 5.70
============== ============
Cash and Due From Banks 100,848 90,124
Allowance For Loan Losses (16,585) (13,264)
Other Assets 189,849 125,069
- -------------------------------------------------------- ---------
Total Assets $2,383,218 1,879,991
======================================================== =========
LIABILITIES:
Interest Bearing Deposits
NOW Accounts $ 386,626 1,007 0.53% 277,588 245 0.18
Money Market Accounts 261,072 1,455 1.12 215,412 478 0.45
Savings Accounts 151,502 151 0.20 122,835 60 0.10
Time Deposits 549,983 6,314 2.31 427,007 3,996 1.88
- ---------------------------------------------------------------------------------------------------
Total Interest Bearing Deposits 1,349,183 8,927 1.33 1,042,842 4,779 0.92
Short-Term Borrowings 94,125 1,184 2.54 107,064 536 1.01
Subordinated Note Payable 38,345 1,108 5.83 0 0 0.00
Other Long-Term Borrowings 68,590 1,489 4.38 50,387 1,084 4.33
- ---------------------------------------------------------------------------------------------------
Total Interest Bearing Liabilities 1,550,243 $12,708 1.65% 1,200,293 6,399 1.07
============== ============
Noninterest Bearing Deposits 540,812 455,053
Other Liabilities 22,589 16,342
- -------------------------------------------------------- ---------
Total Liabilities 2,113,644 1,671,688
SHAREOWNERS' EQUITY: $ 269,574 208,303
- -------------------------------------------------------- ---------
Total Liabilities and Shareowners' Equity $2,383,218 1,879,991
======================================================== =========
Interest Rate Spread $52,231 4.56% 41,144 4.63
======================================================================== ============
Interest Income and Rate Earned <F2> $64,939 6.21 47,543 5.70
Interest Expense and Rate Paid <F3> 12,708 1.22 6,399 0.77
- ------------------------------------------------------------------------ ------------
Net Interest Margin $52,231 4.99% 41,144 4.93
======================================================================== ============
<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>
10