CAPITAL CITY BANK GROUP, INC.
CONSOLIDATED STATEMENT OF INCOME
Unaudited
- ----------------------------------------------------------------------------------------------------------------------------
2006 2005 Six Months Ended
------------------ ---------------------------- June 30,
Second First Fourth Third Second ----------------
(Dollars in thousands, except per share data) Quarter Quarter Quarter Quarter Quarter 2006 2005
- ----------------------------------------------------------------------------------------------------------------------------
INTEREST INCOME
Interest and Fees on Loans $ 38,967 37,343 36,990 35,331 32,105 76,310 60,947
Investment Securities 1,816 1,530 1,437 1,437 1,447 3,346 2,920
Funds Sold 586 539 353 121 358 1,125 517
- ----------------------------------------------------------------------------------------------------------------------------
Total Interest Income 41,369 39,412 38,780 36,889 33,910 80,781 64,384
- ----------------------------------------------------------------------------------------------------------------------------
INTEREST EXPENSE
Deposits 8,716 7,722 6,727 5,480 4,618 16,438 8,927
Short-Term Borrowings 776 824 979 691 734 1,600 1,184
Subordinated Notes Payable 926 926 942 931 667 1,852 1,108
Other Long-Term Borrowings 764 810 822 783 769 1,574 1,489
- ----------------------------------------------------------------------------------------------------------------------------
Total Interest Expense 11,182 10,282 9,470 7,885 6,788 21,464 12,708
- ----------------------------------------------------------------------------------------------------------------------------
Net Interest Income 30,187 29,130 29,310 29,004 27,122 59,317 51,676
Provision for Loan Losses 121 667 1,333 376 388 788 798
- ----------------------------------------------------------------------------------------------------------------------------
Net Interest Income after Provision for Loan Losses 30,066 28,463 27,977 28,628 26,734 58,529 50,878
============================================================================================================================
NONINTEREST INCOME
Service Charges on Deposit Accounts 6,096 5,680 5,722 5,635 5,035 11,776 9,383
Data Processing 703 637 693 660 650 1,340 1,257
Asset Management Fees 1,155 1,050 1,244 1,050 1,013 2,205 2,125
Retail Brokerage Fees 502 483 404 305 313 985 612
Gain on Sale of Investment Securities (4) - - 9 - (4) -
Mortgage Banking Revenue 903 721 956 1,317 1,036 1,624 1,799
Merchant Fees 1,793 1,725 1,522 1,556 1,532 3,518 3,096
Interchange Fees 788 675 631 582 535 1,463 1,026
ATM/Debit Card Fees 627 599 582 550 536 1,226 1,074
Other 1,440 1,475 1,220 1,459 1,391 2,915 2,729
- ----------------------------------------------------------------------------------------------------------------------------
Total Noninterest Income 14,003 13,045 12,974 13,123 12,041 27,048 23,101
============================================================================================================================
NONINTEREST EXPENSE
Salaries and Associate Benefits 15,204 15,430 13,894 14,046 13,187 30,634 25,747
Occupancy, Net 2,358 2,223 2,202 2,119 2,035 4,581 3,972
Furniture and Equipment 2,661 2,500 2,381 2,285 2,192 5,161 4,304
Intangible Amortization 1,536 1,530 1,518 1,430 1,296 3,066 2,492
Other 9,311 8,409 9,347 8,729 7,886 17,720 15,348
- ----------------------------------------------------------------------------------------------------------------------------
Total Noninterest Expense 31,070 30,092 29,342 28,609 26,596 61,162 51,863
============================================================================================================================
OPERATING PROFIT 12,999 11,416 11,609 13,142 12,179 24,415 22,116
Provision for Income Taxes 4,684 3,995 4,150 4,565 4,311 8,679 7,871
- ----------------------------------------------------------------------------------------------------------------------------
NET INCOME $ 8,315 7,421 7,459 8,577 7,868 15,736 14,245
============================================================================================================================
PER SHARE DATA
Basic Earnings $ 0.44 0.40 0.40 0.46 0.44 0.84 0.80
Diluted Earnings 0.44 0.40 0.40 0.46 0.44 0.84 0.80
Cash Dividends 0.163 0.163 0.163 0.152 0.152 0.326 0.304
AVERAGE SHARES
Basic 18,633 18,652 18,624 18,623 18,094 18,642 17,898
Diluted 18,653 18,665 18,654 18,649 18,102 18,658 17,909
============================================================================================================================
CAPITAL CITY BANK GROUP, INC.
CONSOLIDATED STATEMENT OF FINANCIAL CONDITION
Unaudited
===============================================================================================================
2006 2005
---------------------- ----------------------------------
Second First Fourth Third Second
(Dollars in thousands, except per share data) Quarter Quarter Quarter Quarter Quarter
- ---------------------------------------------------------------------------------------------------------------
ASSETS
Cash and Due From Banks $ 103,078 104,486 105,195 109,847 117,921
Funds Sold and Interest Bearing Deposits 126,210 110,604 61,164 16,382 59,062
- ---------------------------------------------------------------------------------------------------------------
Total Cash and Cash Equivalents 229,288 215,090 166,359 126,229 176,983
Investment Securities, Available-for-Sale 191,232 180,760 171,019 192,435 195,860
Loans, Net of Unearned Interest
Commercial, Financial & Agricultural 220,345 223,310 232,294 230,175 228,220
Real Estate - Construction 180,049 172,317 160,914 151,951 148,367
Real Estate - Commercial 672,881 679,948 704,881 699,293 700,477
Real Estate - Residential 536,346 543,373 531,653 526,167 519,441
Real Estate - Home Equity 171,835 163,189 165,336 162,309 160,767
Consumer 238,381 240,921 242,481 243,081 242,922
Credit Card - - - 1 49
Other Loans 29,784 26,951 26,346 34,225 43,217
Overdrafts 3,239 4,647 3,589 5,690 3,314
- ---------------------------------------------------------------------------------------------------------------
Total Loans, Net of Unearned Interest 2,052,860 2,054,656 2,067,494 2,052,892 2,046,774
Allowance for Loan Losses (17,264) (17,279) (17,410) (17,424) (17,451)
- ---------------------------------------------------------------------------------------------------------------
Loans, Net 2,035,596 2,037,377 2,050,084 2,035,468 2,029,323
Premises and Equipment, Net 81,407 76,693 73,818 71,044 69,294
Intangible Assets 107,422 108,958 110,451 111,851 113,081
Other Assets 52,541 55,841 53,731 46,475 45,344
- ---------------------------------------------------------------------------------------------------------------
Total Other Assets 241,370 241,492 238,000 229,370 227,719
- ---------------------------------------------------------------------------------------------------------------
Total Assets $2,697,486 2,674,719 2,625,462 2,583,502 2,629,885
===============================================================================================================
LIABILITIES
Deposits:
Noninterest Bearing Deposits $ 572,549 562,140 559,492 571,880 598,602
NOW Accounts 555,350 518,024 520,878 481,767 475,687
Money Market Accounts 377,958 369,416 331,094 267,074 287,601
Regular Savings Accounts 135,330 137,780 144,296 155,471 162,665
Certificates of Deposit 512,672 521,796 523,586 549,296 576,074
- ---------------------------------------------------------------------------------------------------------------
Total Deposits 2,153,859 2,109,156 2,079,346 2,025,488 2,100,629
Short-Term Borrowings 77,571 89,105 82,973 92,746 71,148
Subordinated Notes Payable 62,887 62,887 62,887 62,887 62,887
Other Long-Term Borrowings 63,022 68,764 69,630 71,526 73,144
Other Liabilities 28,403 33,744 24,850 29,278 26,655
- ---------------------------------------------------------------------------------------------------------------
Total Liabilities 2,385,742 2,363,656 2,319,686 2,281,925 2,334,463
- ---------------------------------------------------------------------------------------------------------------
SHAREOWNERS' EQUITY
Common Stock 185 187 186 186 186
Additional Paid-in-Capital 80,272 84,291 83,304 83,185 82,582
Retained Earnings 233,201 227,920 223,532 219,099 213,352
Accumulated Other Comprehensive Income, Net of Tax (1,914) (1,335) (1,246) (893) (698)
- ---------------------------------------------------------------------------------------------------------------
Total Shareowners' Equity 311,744 311,063 305,776 301,577 295,422
- ---------------------------------------------------------------------------------------------------------------
Total Liabilities and Shareowners' Equity $2,697,486 2,674,719 2,625,462 2,583,502 2,629,885
===============================================================================================================
OTHER BALANCE SHEET DATA
Earning Assets $2,370,302 2,346,020 2,299,677 2,261,709 2,301,696
Intangible Assets
Goodwill 84,811 84,811 84,828 84,710 84,511
Deposit Base 21,042 22,453 23,864 25,275 26,598
Other 1,569 1,694 1,759 1,866 1,972
Interest Bearing Liabilities 1,784,790 1,767,772 1,735,344 1,680,767 1,709,206
- ---------------------------------------------------------------------------------------------------------------
Book Value Per Diluted Share $ 16.81 16.65 16.39 16.17 15.87
Tangible Book Value Per Diluted Share 11.01 10.82 10.47 10.17 9.79
- ---------------------------------------------------------------------------------------------------------------
Actual Basic Shares Outstanding 18,530 18,667 18,632 18,624 18,614
Actual Diluted Shares Outstanding 18,550 18,680 18,662 18,649 18,617
===============================================================================================================
CAPITAL CITY BANK GROUP, INC.
ALLOWANCE FOR LOAN LOSSES
AND NONPERFORMING ASSETS
Unaudited
================================================================================================================
2006 2005
--------------------- ----------------------------------
Second First Fourth Third Second
(Dollars in thousands) Quarter Quarter Quarter Quarter Quarter
- ----------------------------------------------------------------------------------------------------------------
ALLOWANCE FOR LOAN LOSSES
Balance at Beginning of Period $17,279 17,410 17,424 17,451 16,040
Acquired Reserves - - - - 1,385
Provision for Loan Losses 121 667 1,333 376 388
Net Charge-offs 136 798 1,347 403 362
- ----------------------------------------------------------------------------------------------------------------
Balance at End of Period $17,264 17,279 17,410 17,424 17,451
================================================================================================================
As a % of Loans 0.84% 0.84 0.84 0.85 0.85
As a % of Nonperforming Loans 325.80 330.70 331.11 342.79 289.12
As a % of Nonperforming Assets 299.72 298.27 313.69 236.07 280.65
================================================================================================================
CHARGE-OFFS
Commercial, Financial and Agricultural $ 144 322 745 151 302
Real Estate - Construction - - - - -
Real Estate - Commercial - 291 245 4 2
Real Estate - Residential 23 22 145 115 37
Consumer 448 591 575 551 536
- ----------------------------------------------------------------------------------------------------------------
Total Charge-Offs $ 615 1,226 1,710 821 877
================================================================================================================
RECOVERIES
Commercial, Financial and Agricultural $ 63 62 30 43 98
Real Estate - Construction - - - - -
Real Estate - Commercial 2 3 1 1 -
Real Estate - Residential 2 7 1 20 14
Consumer 412 356 331 354 403
- ----------------------------------------------------------------------------------------------------------------
Total Recoveries $ 479 428 363 418 515
================================================================================================================
NET CHARGE-OFFS $ 136 798 1,347 403 362
================================================================================================================
Net Charge-Offs as a % of Average Loans <F1> 0.03% 0.16 0.26 0.08 0.08
================================================================================================================
RISK ELEMENT ASSETS
Nonaccruing Loans $ 5,299 5,225 5,258 5,083 6,036
Restructured - - - - -
- ----------------------------------------------------------------------------------------------------------------
Total Nonperforming Loans 5,299 5,225 5,258 5,083 6,036
Other Real Estate 461 568 292 2,298 182
- ----------------------------------------------------------------------------------------------------------------
Total Nonperforming Assets $ 5,760 5,793 5,550 7,381 6,218
================================================================================================================
Past Due Loans 90 Days or More $ 205 367 309 473 562
================================================================================================================
Nonperforming Loans as a % of Loans 0.26% 0.25 0.25 0.25 0.29
Nonperforming Assets as a % of
Loans and Other Real Estate 0.28 0.28 0.27 0.36 0.30
Nonperforming Assets as a % of Capital <F2> 1.75 1.76 1.72 2.31 1.99
=================================================================================================================
<FN>
<F1> Annualized
<F2> Capital includes allowance for loan losses.
</FN>
AVERAGE BALANCE AND INTEREST RATES <F1>
Unaudited
- -----------------------------------------------------------------------------------------------------------------------------------
Second Quarter of 2006 First Quarter 2006 Fourth Quarter 2005
------------------------- -------------------------- ------------------------
Average Average Average Average Average Average
(Dollars in thousands) Balance Interest Rate Balance Interest Rate Balance Interest Rate
- ------------------------------------------------------------------------- ------------------------- ------------------------
ASSETS:
Loans, Net of Unearned Interest $2,040,656 $39,059 7.68% 2,048,642 37,439 7.41 2,062,775 37,112 7.14
Investment Securities
Taxable Investment Securities 114,521 1,233 4.30 118,055 1,091 3.70 128,478 1,025 3.18
Tax-Exempt Investment Securities 74,862 895 4.78 59,368 674 4.54 55,481 632 4.55
- ---------------------------------------------------------------------------------------------------------------------------------
Total Investment Securities 189,383 2,128 4.49 177,423 1,765 3.98 183,959 1,657 3.60
Funds Sold 48,778 586 4.75 49,602 539 4.36 32,276 353 4.28
- ---------------------------------------------------------------------------------------------------------------------------------
Total Earning Assets 2,278,817 $41,773 7.35% 2,275,667 39,743 7.08 2,279,010 39,122 6.81
============== ============ ============
Cash and Due From Banks 99,830 109,907 114,650
Allowance For Loan Losses (17,443) (17,582) (17,568)
Other Assets 241,886 236,466 231,505
- -------------------------------------------------------- --------- ---------
Total Assets $2,603,090 2,604,458 2,607,597
======================================================== ========= =========
LIABILITIES:
Interest Bearing Deposits
NOW Accounts $ 510,088 1,664 1.31 510,270 1,446 1.15 483,780 1,088 0.89
Money Market Accounts 363,754 2,642 2.91 343,652 2,298 2.71 307,971 1,820 2.34
Savings Accounts 136,168 67 0.20 139,664 62 0.18 149,431 67 0.18
Time Deposits 518,679 4,343 3.36 521,966 3,916 3.04 539,695 3,752 2.76
- ---------------------------------------------------------------------------------------------------------------------------------
Total Interest Bearing Deposits 1,528,689 8,716 2.29 1,515,552 7,722 2.07 1,480,877 6,727 1.80
Short-Term Borrowings 82,846 776 3.75 93,867 824 3.55 113,600 979 3.42
Subordinated Note Payable 62,887 926 5.91 62,887 926 5.97 62,887 942 5.94
Other Long-Term Borrowings 63,597 764 4.82 69,966 810 4.70 71,224 822 4.58
- ---------------------------------------------------------------------------------------------------------------------------------
Total Interest Bearing Liabilities 1,738,019 $11,182 2.58% 1,742,272 10,282 2.39 1,728,588 9,470 2.17
============== ============ ============
Noninterest Bearing Deposits 519,066 524,696 543,140
Other Liabilities 30,211 26,029 29,661
- -------------------------------------------------------- --------- ---------
Total Liabilities 2,287,296 2,292,997 2,301,389
SHAREOWNERS' EQUITY: $ 315,794 311,461 306,208
- -------------------------------------------------------- --------- ---------
Total Liabilities and Shareowners' Equity $2,603,090 2,604,458 2,607,597
======================================================== ========= =========
Interest Rate Spread $30,591 4.77% 29,461 4.69 29,652 4.64
======================================================================== ============ ============
Interest Income and Rate Earned <F2> $41,773 7.35 39,743 7.08 39,122 6.81
Interest Expense and Rate Paid 11,182 1.97 10,282 1.83 9,470 1.65
- ------------------------------------------------------------------------ ------------ ------------
Net Interest Margin $30,591 5.38% 29,461 5.25 29,652 5.16
======================================================================== ============ ============
<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>
AVERAGE BALANCE AND INTEREST RATES <F1>
Unaudited
- -----------------------------------------------------------------------------------------------------
Third Quarter of 2005 Second Quarter 2005
------------------------- -------------------------
Average Average Average Average
(Dollars in thousands) Balance Interest Rate Balance Interest Rate
- ------------------------------------------------------------------------ -------------------------
ASSETS:
Loans, Net of Unearned Interest $2,046,968 $35,433 6.87% 1,932,637 32,200 6.68
Investment Securities
Taxable Investment Securities 137,970 1,022 2.95 149,958 1,113 2.96
Tax-Exempt Investment Securities 56,079 638 4.55 41,316 513 4.97
- ----------------------------------------------------------------------------------------------------
Total Investment Securities 194,049 1,660 3.42 191,274 1,626 3.40
Funds Sold 9,885 121 4.79 46,572 358 3.04
- ----------------------------------------------------------------------------------------------------
Total Earning Assets 2,250,902 $37,214 6.56% 2,170,483 34,184 6.32
============== ============
Cash and Due From Banks 106,638 104,336
Allowance For Loan Losses (17,570) (16,998)
Other Assets 229,554 200,967
- -------------------------------------------------------- ---------
Total Assets $2,569,524 2,458,788
======================================================== =========
LIABILITIES:
Interest Bearing Deposits
NOW Accounts $ 463,936 773 0.66% 413,799 560 0.54
Money Market Accounts 272,724 1,062 1.54 270,195 830 1.23
Savings Accounts 159,080 75 0.19 155,286 75 0.19
Time Deposits 563,595 3,570 2.51 547,919 3,153 2.31
- ----------------------------------------------------------------------------------------------------
Total Interest Bearing Deposits 1,459,335 5,480 1.49 1,387,199 4,618 1.34
Short-Term Borrowings 89,483 691 3.07 108,508 734 2.71
Subordinated Note Payable 62,887 931 5.87 45,681 667 5.86
Other Long-Term Borrowings 72,408 783 4.29 68,975 769 4.47
- ----------------------------------------------------------------------------------------------------
Total Interest Bearing Liabilities 1,684,113 $ 7,885 1.86% 1,610,363 6,788 1.69
============== ============
Noninterest Bearing Deposits 554,092 544,945
Other Liabilities 30,388 25,373
- -------------------------------------------------------- ---------
Total Liabilities 2,268,593 2,180,681
SHAREOWNERS' EQUITY: $ 300,931 278,107
- -------------------------------------------------------- ---------
Total Liabilities and Shareowners' Equity $2,569,524 2,458,788
======================================================== =========
Interest Rate Spread $29,329 4.70% 27,396 4.63
======================================================================== ============
Interest Income and Rate Earned <F2> $37,214 6.56 34,184 6.32
Interest Expense and Rate Paid 7,885 1.39 6,788 1.25
- ------------------------------------------------------------------------ ------------
Net Interest Margin $29,329 5.17% 27,396 5.07
======================================================================== ============
<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>
AVERAGE BALANCE AND INTEREST RATES <F1>
Unaudited
- -----------------------------------------------------------------------------------------------------
Six Months Ended Six Months Ended
June 30, 2006 June 30, 2005
------------------------- -------------------------
Average Average Average Average
(Dollars in thousands) Balance Interest Rate Balance Interest Rate
- ------------------------------------------------------------------------ -------------------------
ASSETS:
Loans, Net of Unearned Interest $2,044,627 $76,498 7.54% 1,880,272 61,120 6.56
Investment Securities
Taxable Investment Securities 116,278 2,323 3.99 151,740 2,203 2.91
Tax-Exempt Investment Securities 67,158 1,570 4.67 42,615 1,099 5.16
- ----------------------------------------------------------------------------------------------------
Total Investment Securities 183,436 3,893 4.24 194,355 3,302 3.40
Funds Sold 49,188 1,125 4.56 34,479 517 2.98
- ----------------------------------------------------------------------------------------------------
Total Earning Assets 2,277,251 $81,516 7.21% 2,109,106 64,939 6.21
============== ============
Cash and Due From Banks 104,841 100,848
Allowance For Loan Losses (17,512) (16,585)
Other Assets 239,190 189,849
- -------------------------------------------------------- ---------
Total Assets $2,603,770 2,383,218
======================================================== =========
LIABILITIES:
Interest Bearing Deposits
NOW Accounts $ 510,178 3,110 1.23% 386,626 1,007 0.53
Money Market Accounts 353,759 4,940 2.82 261,072 1,455 1.12
Savings Accounts 137,906 130 0.19 151,502 151 0.20
Time Deposits 520,314 8,258 3.20 549,983 6,314 2.31
- ----------------------------------------------------------------------------------------------------
Total Interest Bearing Deposits 1,522,157 16,438 2.18 1,349,183 8,927 1.33
Short-Term Borrowings 88,326 1,600 3.64 94,125 1,184 2.54
Subordinated Note Payable 62,887 1,852 5.94 38,345 1,108 5.83
Other Long-Term Borrowings 66,763 1,574 4.75 68,590 1,489 4.38
- ----------------------------------------------------------------------------------------------------
Total Interest Bearing Liabilities 1,740,133 $21,464 2.49% 1,550,243 12,708 1.65
============== ============
Noninterest Bearing Deposits 521,865 540,812
Other Liabilities 28,132 22,589
- -------------------------------------------------------- ---------
Total Liabilities 2,290,130 2,113,644
SHAREOWNERS' EQUITY: $ 313,640 269,574
- -------------------------------------------------------- ---------
Total Liabilities and Shareowners' Equity $2,603,770 2,383,218
======================================================== =========
Interest Rate Spread $60,052 4.72% 52,231 4.56
======================================================================== ============
Interest Income and Rate Earned <F2> $81,516 7.21 64,939 6.21
Interest Expense and Rate Paid 21,464 1.90 12,708 1.22
- ------------------------------------------------------------------------ ------------
Net Interest Margin $60,052 5.31% 52,231 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.
</FN>