• Capital City Bank Group, Inc. Reports Second Quarter 2019 Results

    Source: Nasdaq GlobeNewswire / 23 Jul 2019 07:01:40   America/New_York

    TALLAHASSEE, Fla., July 23, 2019 (GLOBE NEWSWIRE) -- Capital City Bank Group, Inc. (NASDAQ: CCBG) today reported net income of $7.3 million, or $0.44 per diluted share, for the second quarter of 2019 compared to net income of $6.4 million, or $0.38 per diluted share, for the first quarter of 2019, and $6.0 million, or $0.35 per diluted share, for the second quarter of 2018.  For the first six months of 2019, net income totaled $13.8 million, or $0.82 per diluted share, compared to net income of $11.8 million, or $0.69 per diluted share, for the same period of 2018.

    Net income for the first six months of 2018 included tax benefits totaling $2.9 million, or $0.17 per diluted share (1Q - $1.5 million, or $0.09 per diluted share and 2Q - $1.4 million, or $0.08 per diluted share) related to 2017 plan year pension plan contributions made in 2018.

    HIGHLIGHTS

    • Net interest income up 4.3% sequentially and 14.3% over prior year
    • Net interest margin of 3.85%, up 10 basis points over prior quarter
    • Average loan growth of $43 million, or 2.4% over prior quarter
    • Strong year over year growth in average deposit balances of $121 million, or 5.0%
    • Year-to-date net charge-offs at 12 basis points continues to reflect the quality of our loan portfolio
    • Repurchased 77,000 shares of our stock in the second quarter of 2019
    • Tangible equity ratio up 27 basis points sequentially to 7.83%

    “I am very encouraged by our results in the first half and particularly pleased with the loan growth and margin expansion achieved in the second quarter,” said William G. Smith, Jr., Chairman, President and CEO. “Higher earning asset yields, loan growth and a phenomenal core deposit base are all contributing to higher net interest income. Credit quality continues to improve, and the strength of our Florida and Georgia economies is driving continued improvement in our market demographics. Lowering our efficiency ratio is a top priority, and we have multiple strategies in place to grow revenues and manage expenses. There is more to be done, but I am pleased with our progress as we remain focused on strategies that produce long-term value for our shareowners.”

    Compared to the first quarter of 2019, the $1.2 million increase in operating profit reflected a $1.1 million increase in net interest income, higher noninterest income of $0.2 million, and a $0.1 million decrease in the loan loss provision, partially offset by higher noninterest expense of $0.2 million.

    Compared to the second quarter of 2018, the $3.6 million increase in operating profit was attributable to higher net interest income of $3.2 million, higher noninterest income of $0.2 million, and a $0.2 million decrease in the loan loss provision.

    The increase in operating profit for the first six months of 2019 versus the comparable period of 2018 was attributable to higher net interest income of $6.4 million, higher noninterest income of $0.3 million, and a $0.1 million decrease in the loan loss provision, partially offset by higher noninterest expense of $0.3 million.

    Our return on average assets (“ROA”) was 0.98% and our return on average equity (“ROE”) was 9.37% for the second quarter of 2019.  These metrics were 0.87% and 8.49% for the first quarter of 2019, respectively, and 0.84% and 8.25% for the second quarter of 2018, respectively.  For the first six months of 2019, our ROA was 0.92% and our ROE was 8.94% compared to 0.83% and 8.20%, respectively, for the same period of 2018.

    Discussion of Operating Results

    Tax-equivalent net interest income for the second quarter of 2019 was $26.1 million compared to $25.0 million for the first quarter of 2019 and $22.9 million for the second quarter of 2018.  For the first six months of 2019, tax-equivalent net interest income totaled $51.2 million compared to $44.9 million for the comparable period of 2018.  The increase in tax-equivalent net interest income compared to the prior quarter reflected loan growth, higher interest rates, and one additional calendar day. The year-over-year comparisons for both the second quarter and year-to-date periods were primarily driven by significant growth in our earning assets, as higher balances of noninterest bearing deposits funded loan growth.

    The federal funds target rate has increased nine times since December 2015 to 2.50% by the end of December 2018. The above comparisons reflected favorable repricing of our variable and adjustable rate earning assets as a result of these rate increases.  Our overall cost of funds was 40 basis points for the second quarter of 2019, a two basis point reduction compared to the prior quarter.  The reduction in cost of funds reflected the favorable shift in our deposit mix.  Due to highly competitive fixed-rate loan pricing across most markets, we have continued to review our loan pricing and make adjustments where appropriate and prudent.   

    Our net interest margin for the second quarter of 2019 was 3.85%, an increase of 10 basis points compared to the first quarter of 2019 and an increase of 27 basis points over the second quarter of 2018.  For the first six months of 2019, the net interest margin increased 29 basis points to 3.80% compared to the same period of 2018. The increase in the margin as compared to all respective prior periods reflected rising interest rates and a favorable shift in our earning asset mix, which produced higher net interest income in each period. 

    The provision for loan losses for the second quarter of 2019 was $0.6 million compared to $0.8 million for the first quarter of 2019 and $0.8 million for the second quarter of 2018.  For the first six months of 2019, the loan loss provision was $1.4 million compared to $1.6 million in 2018.  At June 30, 2019, the allowance for loan losses of $14.6 million represented 0.79% of outstanding loans (net of overdrafts) and provided coverage of 260% of nonperforming loans compared to 0.78% and 280%, respectively, at March 31, 2019 and 0.80% and 207%, respectively, at December 31, 2018.

    Noninterest income for the second quarter of 2019 totaled $12.8 million, an increase of $0.2 million, or 1.7%, over the first quarter of 2019 and a $0.2 million, or 1.8%, increase over the second quarter of 2018.  For the first six months of 2019, noninterest income totaled $25.3 million, a $0.3 million, or 1.2%, increase over the same period of 2018.  Higher mortgage banking fees and bank card fees drove the increase compared to the first quarter of 2019.  Higher wealth management fees drove the increase compared to both prior year periods and reflected higher assets under management.        

    Noninterest expense for the second quarter of 2019 totaled $28.4 million, an increase of $0.2 million, or 0.7%, over the first quarter of 2019 and comparable to the second quarter of 2018.  For the first six months of 2019, noninterest expense totaled $56.6 million, a $0.3 million, or 0.5% increase over the same period of 2018.  The slight increase over the first quarter of 2019 reflected higher compensation expense, primarily mid-year merit raises and commissions.  The increase for the six month period reflected higher compensation expense of $1.1 million that was partially offset by lower other real estate expense of $0.4 million and other expense of $0.4 million.  Higher base salary expense (primarily merit raises) and commissions drove the increase in compensation expense.  Lower valuation adjustments drove the reduction in other real estate expense.  The decrease in other expense primarily reflected lower professional fees.        

    We realized income tax expense of $4.4 million (effective rate of 25%) for the first six months of 2019 compared to an income tax benefit of $0.1 million for the same period of 2018.  During 2018, we realized tax benefits totaling $2.9 million (1Q - $1.5 million and 2Q - $1.4 million) resulting from the effect of federal tax reform on pension plan contributions made in 2018 for the plan year 2017.     

    Discussion of Financial Condition

    Average earning assets were $2.719 billion for the second quarter of 2019, an increase of $14.4 million, or 0.5%, over the first quarter of 2019, and an increase of $164.7 million, or 6.4%, over the fourth quarter of 2018.  The change in average earning assets compared to the first quarter 2019 was primarily attributable to loan growth funded by noninterest bearing deposits, partially offset by a decline in our seasonal public fund balances.  The change in average earning assets over the fourth quarter 2018 was attributable to growth in our overnight funds position and loan portfolio, primarily funded by increases in our noninterest bearing and public fund deposits. 

    We maintained an average net overnight funds (deposits with banks plus fed funds sold less fed funds purchased) sold position of $251.8 million for the second quarter of 2019 compared to an average net overnight funds sold position of $265.7 million for the first quarter of 2019 and $80.8 million for the fourth quarter of 2018.  The decrease in average net overnight funds compared to the prior quarter reflected loan growth, partially offset by runoff from the investment portfolio. The increase in average overnight funds compared to the fourth quarter of 2018 reflected growth in all deposit products except money market accounts and certificates of deposit, and a reduction in the investment portfolio, partially offset by loan growth.

    Average loans increased $42.9 million, or 2.4% compared to the first quarter of 2019, and have grown $37.7 million, or 2.1% compared to the fourth quarter of 2018.  Growth over both prior periods occurred in all loan types except institutional, home equity, and consumer loans.  During the second quarter of 2019, we purchased pools of adjustable rate residential loans totaling $3.9 million.  In the first quarter 2019, we purchased a $10.3 million pool of fixed and adjustable rate commercial real estate loans and a $4.4 million pool of adjustable rate residential loans.

    We continue to make minor modifications on some of our lending programs to try to mitigate the impact that consumer and business deleveraging has had on our portfolio.  These programs, coupled with economic improvements in our anchor markets, have helped to increase overall loan growth.

    Nonperforming assets (nonaccrual loans and OREO) totaled $6.6 million at June 30, 2019, a decrease of $0.3 million, or 4.6%, from March 31, 2019 and $2.5 million, or 27.1%, from December 31, 2018.  Nonaccrual loans totaled $5.6 million at June 30, 2019, a $0.6 million increase over March 31, 2019 and a $1.2 million decrease from December 31, 2018.  The balance of OREO totaled $1.0 million at June 30, 2019, a decrease of $0.9 million and $1.2 million, respectively, from March 31, 2019 and December 31, 2018.  

    Average total deposits were $2.565 billion for the second quarter of 2019, an increase of $0.7 million over the first quarter of 2019, and an increase of $153.1 million, or 6.3% over the fourth quarter of 2018.  The increase in deposits compared to the first quarter of 2019 reflected higher noninterest bearing and savings accounts, partially offset by lower public fund NOW accounts, money market accounts, and certificates of deposit balances. The increase in deposits when compared to the fourth quarter of 2018 reflected growth in all deposit products except money market accounts and certificates of deposit.  Public fund accounts typically peak in the first quarter and trend lower through the fourth quarter due to the cycle of tax receipts.  Deposit levels remain strong, and average core deposits continue to experience growth.  We monitor deposit rates on an ongoing basis as a prudent pricing discipline remains the key to managing our mix of deposits.

    Average borrowings decreased $2.4 million in the second quarter 2019 compared to the prior quarter, and declined $8.2 million compared to the fourth quarter of 2018. Decreases occurred in both short-term and long-term borrowings as we reduced our repurchase agreements and a portion of our match funded advances from the Federal Home Loan Bank.  

    Shareowners’ equity was $314.6 million at June 30, 2019, compared to $309.0 million at March 31, 2019 and $302.6 million at December 31, 2018.  Our leverage ratio was 10.64%, 10.53%, and 10.89%, respectively, on these dates.  Further, at June 30, 2019, our total risk-based capital ratio was 17.13% compared to 17.09% and 17.13% at March 31, 2019 and December 31, 2018, respectively.  Our common equity tier 1 capital ratio was 13.67% at June 30, 2019, compared to 13.62% at March 31, 2019 and 13.58% at December 31, 2018.  All of our capital ratios exceeded the threshold to be designated as “well-capitalized” under the Basel III capital standards. 

    About Capital City Bank Group, Inc.

    Capital City Bank Group, Inc. (NASDAQ: CCBG) is one of the largest publicly traded financial holding companies headquartered in Florida and has approximately $3.0 billion in assets.  We provide a full range of banking services, including traditional deposit and credit services, mortgage banking, asset management, trust, merchant services, bankcards and securities brokerage services.  Our bank subsidiary, Capital City Bank, was founded in 1895 and now has 57 banking offices and 81 ATMs in Florida, Georgia and Alabama.  For more information about Capital City Bank Group, Inc., visit www.ccbg.com.

    FORWARD-LOOKING STATEMENTS

    Forward-looking statements in this Press Release are based on current plans and expectations that are subject to uncertainties and risks, which could cause our future results to differ materially.  The following factors, among others, could cause our actual results to differ: the accuracy of the our financial statement estimates and assumptions; legislative or regulatory changes, including the Dodd-Frank Act, Basel III, and the ability to repay and qualified mortgage standards; fluctuations in inflation, interest rates, or monetary policies; the effects of security breaches and computer viruses that may affect our computer systems or fraud related to debit card products; changes in consumer spending and savings habits; our growth and profitability; the strength of the U.S. economy and the local economies where we conduct operations; the effects of a non-diversified loan portfolio, including the risks of geographic and industry concentrations; harsh weather conditions and man-made disasters; changes in the stock market and other capital and real estate markets; customer acceptance of third-party products and services; increased competition and its effect on pricing, including the long-term impact on our net interest margin from the repeal of Regulation Q; negative publicity and the impact on our reputation; technological changes, especially changes that allow out of market competitors to compete in our markets; changes in accounting; and our ability to manage the risks involved in the foregoing.  Additional factors can be found in our Annual Report on Form 10-K for the fiscal year ended December 31, 2018, and our other filings with the SEC, which are available at the SEC’s internet site (http://www.sec.gov).  Forward-looking statements in this Press Release speak only as of the date of the Press Release, and we assume no obligation to update forward-looking statements or the reasons why actual results could differ.

    USE OF NON-GAAP FINANCIAL MEASURES

    We present a tangible common equity ratio and tangible book value per diluted share that removes the effect of goodwill resulting from merger and acquisition activity.  We believe these measures are useful to investors because it allows investors to more easily compare our capital adequacy to other companies in the industry.  The GAAP to non-GAAP reconciliation is provided below.

    (Dollars in Thousands) Jun 30, 2019Mar 31, 2019Dec 31, 2018Sep 30, 2018Jun 30, 2018
    Shareowners' Equity (GAAP) $314,595 $308,986 $302,587 $298,016 $293,571 
    Less: Goodwill (GAAP)  84,811  84,811  84,811  84,811  84,811 
    Tangible Shareowners' Equity (non-GAAP)A 229,784  224,175  217,776  213,205  208,760 
    Total Assets (GAAP)  3,017,654  3,052,051  2,959,183  2,819,190  2,880,278 
    Less: Goodwill (GAAP)  84,811  84,811  84,811  84,811  84,811 
    Tangible Assets (non-GAAP)B$2,932,843 $2,967,240 $2,874,372 $2,734,379 $2,795,467 
    Tangible Common Equity Ratio (non-GAAP)A/B 7.83% 7.56% 7.58% 7.80% 7.47%
    Actual Diluted Shares Outstanding (GAAP)C 16,773,449  16,840,496  16,808,542  17,127,846  17,114,380 
    Tangible Book Value per Diluted Share (non-GAAP)A/C$13.70 $13.31 $12.96 $12.45 $12.20 
                


    CAPITAL CITY BANK GROUP, INC.          
    EARNINGS HIGHLIGHTS          
    Unaudited          
               
      Three Months Ended Six Months Ended
    (Dollars in thousands, except per share data) Jun 30, 2019 Mar 31, 2019 Jun 30, 2018 Jun 30, 2019 Jun 30, 2018
               
    EARNINGS          
    Net Income$7,325 $6,436 $6,003 $13,761 $11,776 
    Net Income Per Common Share$0.44 $0.38 $0.35 $0.82 $0.69 
    PERFORMANCE          
    Return on Average Assets 0.98% 0.87% 0.84% 0.92% 0.83%
    Return on Average Equity 9.37% 8.49% 8.25% 8.94% 8.20%
    Net Interest Margin 3.85% 3.75% 3.58% 3.80% 3.51%
    Noninterest Income as % of Operating Revenue 32.95% 33.51% 35.52% 33.23% 35.97%
    Efficiency Ratio 73.02% 75.01% 80.07% 74.00% 80.57%
    CAPITAL ADEQUACY          
    Tier 1 Capital Ratio 16.36% 16.34% 16.25% 16.36% 16.25%
    Total Capital Ratio 17.13% 17.09% 17.00% 17.13% 17.00%
    Leverage Ratio 10.64% 10.53% 10.69% 10.64% 10.69%
    Common Equity Tier 1 Ratio 13.67% 13.62% 13.46% 13.67% 13.46%
    Tangible Common Equity Ratio(1) 7.83% 7.56% 7.47% 7.83% 7.47%
    Equity to Assets 10.43% 10.12% 10.19% 10.43% 10.19%
    ASSET QUALITY          
    Allowance as % of Non-Performing Loans 259.55% 279.77% 236.25% 259.55% 236.25%
    Allowance as a % of Loans 0.79% 0.78% 0.78% 0.79% 0.78%
    Net Charge-Offs as % of Average Loans 0.04% 0.20% 0.12% 0.12% 0.16%
    Nonperforming Assets as % of Loans and ORE 0.36% 0.39% 0.52% 0.36% 0.52%
    Nonperforming Assets as % of Total Assets 0.22% 0.23% 0.32% 0.22% 0.32%
    STOCK PERFORMANCE          
    High$25.00 $25.87 $25.99 $25.87 $26.50 
    Low 21.57  21.04  22.28  21.04  22.28 
    Close$24.85 $21.78 $23.63 $24.85 $23.63 
    Average Daily Trading Volume 24,258  18,407  25,246  21,380  23,204 
               
    (1) Tangible common equity ratio is a non-GAAP financial measure.  For additional information, including a reconciliation to GAAP, refer to page 4.
               


    CAPITAL CITY BANK GROUP, INC.          
    CONSOLIDATED STATEMENT OF FINANCIAL CONDITION      
    Unaudited          
               
      2019 2018
    (Dollars in thousands) Second Quarter First Quarter Fourth Quarter Third Quarter Second Quarter
    ASSETS          
    Cash and Due From Banks$53,731 $49,501 $62,032 $48,423 $56,573 
    Funds Sold and Interest Bearing Deposits 234,097  304,213  213,968  26,839  107,066 
    Total Cash and Cash Equivalents 287,828  353,714  276,000  75,262  163,639 
               
    Investment Securities Available for Sale 410,851  429,016  446,157  484,243  493,662 
    Investment Securities Held to Maturity 229,516  226,179  217,320  227,923  236,764 
      Total Investment Securities 640,367  655,195  663,477  712,166  730,426 
               
    Loans Held for Sale 9,885  4,557  6,869  8,297  8,246 
               
    Loans, Net of Unearned Interest          
    Commercial, Financial, & Agricultural 265,001  238,942  233,689  239,044  222,406 
    Real Estate - Construction 101,372  87,123  89,527  87,672  88,169 
    Real Estate - Commercial 614,618  615,129  602,061  596,391  575,993 
    Real Estate - Residential 349,843  338,574  334,197  333,896  320,296 
    Real Estate - Home Equity 201,579  209,194  210,111  212,942  218,851 
    Consumer 288,196  296,351  295,040  294,040  285,599 
    Other Loans 13,131  10,430  8,018  8,167  11,648 
    Overdrafts 1,442  1,362  1,582  1,602  1,513 
    Total Loans, Net of Unearned Interest 1,835,182  1,797,105  1,774,225  1,773,754  1,724,475 
    Allowance for Loan Losses (14,593) (14,120) (14,210) (14,219) (13,563)
    Loans, Net 1,820,589  1,782,985  1,760,015  1,759,535  1,710,912 
               
    Premises and Equipment, Net 86,005  86,846  87,190  89,567  90,000 
    Goodwill 84,811  84,811  84,811  84,811  84,811 
    Other Real Estate Owned 1,010  1,902  2,229  2,720  3,373 
    Other Assets 87,159  82,041  78,592  86,832  88,871 
    Total Other Assets 258,985  255,600  252,822  263,930  267,055 
               
    Total Assets$3,017,654 $3,052,051 $2,959,183 $2,819,190 $2,880,278 
               
    LIABILITIES          
    Deposits:          
    Noninterest Bearing Deposits$1,024,898 $995,853 $947,858 $934,146 $937,241 
    NOW Accounts 810,568  887,453  867,209  713,967  778,131 
    Money Market Accounts 240,181  244,628  237,739  254,099  257,965 
    Regular Savings Accounts 371,773  372,414  358,306  352,508  354,156 
    Certificates of Deposit 113,684  116,946  120,744  126,496  131,697 
    Total Deposits 2,561,104  2,617,294  2,531,856  2,381,216  2,459,190 
               
    Short-Term Borrowings 9,753  8,983  13,541  16,644  7,021 
    Subordinated Notes Payable 52,887  52,887  52,887  52,887  52,887 
    Other Long-Term Borrowings 7,313  7,661  8,568  12,456  12,897 
    Other Liabilities 72,002  56,240  49,744  57,971  54,712 
               
    Total Liabilities 2,703,059  2,743,065  2,656,596  2,521,174  2,586,707 
               
    SHAREOWNERS' EQUITY          
    Common Stock 167  168  167  171  171 
    Additional Paid-In Capital 30,751  31,929  31,058  38,325  37,932 
    Retained Earnings 310,247  304,763  300,177  293,254  288,800 
    Accumulated Other Comprehensive Loss, Net of Tax (26,570) (27,874) (28,815) (33,734) (33,332)
               
    Total Shareowners' Equity 314,595  308,986  302,587  298,016  293,571 
               
    Total Liabilities and Shareowners' Equity$3,017,654 $3,052,051 $2,959,183 $2,819,190 $2,880,278 
               
    OTHER BALANCE SHEET DATA          
    Earning Assets$2,719,530 $2,761,070 $2,658,539 $2,521,056 $2,570,213 
    Interest Bearing Liabilities 1,606,159  1,690,972  1,658,994  1,529,057  1,594,754 
               
    Book Value Per Diluted Share$18.76 $18.35 $18.00 $17.40 $17.15 
    Tangible Book Value Per Diluted Share(1) 13.70  13.31  12.96  12.45  12.20 
               
    Actual Basic Shares Outstanding 16,746  16,812  16,748  17,059  17,056 
    Actual Diluted Shares Outstanding 16,773  16,840  16,809  17,128  17,114 
               
    (1) Tangible book value per diluted share is a non-GAAP financial measure.  For additional information, including a reconcilation to GAAP, refer to page 4.


    CAPITAL CITY BANK GROUP, INC.              
    CONSOLIDATED STATEMENT OF OPERATIONS           
    Unaudited              
                   
                Six Months Ended
      2019 2018 June 30,
    (Dollars in thousands, except per share data) Second Quarter First Quarter Fourth Quarter Third Quarter Second Quarter 2019 2018 
                   
    INTEREST INCOME              
    Interest and Fees on Loans$23,765$22,616$22,431 $21,618$20,533$46,381$40,068 
    Investment Securities 3,393 3,513 3,478  3,472 3,156 6,906 5,918 
    Funds Sold 1,507 1,593 461  302 730 3,100 1,647 
    Total Interest Income 28,665 27,722 26,370  25,392 24,419 56,387 47,633 
                   
    INTEREST EXPENSE              
    Deposits 1,988 2,099 1,312  1,068 995 4,087 1,863 
    Short-Term Borrowings 31 35 53  41 8 66 16 
    Subordinated Notes Payable 596 608 572  568 552 1,204 1,027 
    Other Long-Term Borrowings 66 72 85  92 94 138 194 
    Total Interest Expense 2,681 2,814 2,022  1,769 1,649 5,495 3,100 
    Net Interest Income 25,984 24,908 24,348  23,623 22,770 50,892 44,533 
    Provision for Loan Losses 646 767 457  904 815 1,413 1,560 
    Net Interest Income after Provision for
      Loan Losses
     25,338 24,141 23,891  22,719 21,955 49,479 42,973 
                   
    NONINTEREST INCOME              
    Deposit Fees 4,756 4,775 5,172  5,207 4,842 9,531 9,714 
    Bank Card Fees 3,036 2,855 2,830  2,828 2,909 5,891 5,720 
    Wealth Management Fees 2,404 2,323 2,320  2,181 2,037 4,727 4,210 
    Mortgage Banking Fees 1,199 993 1,129  1,343 1,206 2,192 2,263 
    Other 1,375 1,606 1,787  1,749 1,548 2,981 3,112 
    Total Noninterest Income 12,770 12,552 13,238  13,308 12,542 25,322 25,019 
                   
    NONINTEREST EXPENSE              
    Compensation 16,437 16,349 16,322  15,891 15,797 32,786 31,708 
    Occupancy, Net 4,537 4,509 4,804  4,645 4,503 9,046 9,054 
    Other Real Estate, Net 75 363 (1,663) 347 248 438 874 
    Other 7,347 6,977 7,042  7,816 7,845 14,324 14,663 
    Total Noninterest Expense 28,396 28,198 26,505  28,699 28,393 56,594 56,299 
                   
    OPERATING PROFIT 9,712 8,495 10,624  7,328 6,104 18,207 11,693 
    Income Tax Expense (Benefit) 2,387 2,059 2,166  1,338 101 4,446 (83)
    NET INCOME$7,325$6,436$8,458 $5,990$6,003$13,761$11,776 
                   
    PER SHARE DATA              
    Basic Net Income$0.44$0.38$0.50 $0.35$0.35$0.82$0.69 
    Diluted Net Income 0.44 0.38 0.50  0.35 0.35 0.82 0.69 
    Cash Dividend$0.11$0.11$0.09 $0.09$0.07$0.22$0.14 
    AVERAGE SHARES              
    Basic  16,791 16,791 16,989  17,056 17,045 16,791 17,037 
    Diluted  16,818 16,819 17,050  17,125 17,104 16,820 17,089 


    CAPITAL CITY BANK GROUP, INC.              
    ALLOWANCE FOR LOAN LOSSES               
    AND RISK ELEMENT ASSETS              
    Unaudited              
                   
                Six Months Ended
      2019
     2018
     June 30,
    (Dollars in thousands, except per share data) Second Quarter First Quarter Fourth Quarter Third Quarter Second Quarter 2019  2018 
                   
    ALLOWANCE FOR LOAN LOSSES              
    Balance at Beginning of Period$14,120 $14,210 $14,219 $13,563 $13,258 $14,210 $13,307 
    Provision for Loan Losses 646  767  457  904  815  1,413  1,560 
    Net Charge-Offs 173  857  466  248  510  1,030  1,304 
    Balance at End of Period$14,593 $14,120 $14,210 $14,219 $13,563 $14,593 $13,563 
    As a % of Loans 0.79% 0.78% 0.80% 0.80% 0.78% 0.79% 0.78%
    As a % of Nonperforming Loans 259.55% 279.77% 206.79% 207.06% 236.25% 259.55% 236.25%
                   
    CHARGE-OFFS              
    Commercial, Financial and Agricultural$235 $95 $53 $268 $141 $330 $323 
    Real Estate - Construction -  -  -  -  -  -  7 
    Real Estate - Commercial -  155  -  25  -  155  290 
    Real Estate - Residential 65  264  111  106  456  329  563 
    Real Estate - Home Equity 45  52  106  112  157  97  315 
    Consumer 520  795  728  463  509  1,315  1,204 
    Total Charge-Offs$865 $1,361 $998 $974 $1,263 $2,226 $2,702 
                   
    RECOVERIES              
    Commercial, Financial and Agricultural$58 $74 $128 $78 $87 $132 $253 
    Real Estate - Construction -  -  25  -  -  -  1 
    Real Estate - Commercial 100  70  13  222  15  170  138 
    Real Estate - Residential 223  44  106  107  346  267  430 
    Real Estate - Home Equity 60  32  61  47  22  92  83 
    Consumer 251  284  199  272  283  535  493 
    Total Recoveries$692 $504 $532 $726 $753 $1,196 $1,398 
                   
    NET CHARGE-OFFS$173 $857 $466 $248 $510 $1,030 $1,304 
                   
    Net Charge-Offs as a % of Average Loans (1) 0.04% 0.20% 0.10% 0.06% 0.12% 0.12% 0.16%
                   
    RISK ELEMENT ASSETS              
    Nonaccruing Loans$5,622 $5,047 $6,872 $6,867 $5,741     
    Other Real Estate Owned 1,010  1,902  2,229  2,720  3,373     
    Total Nonperforming Assets$6,632 $6,949 $9,101 $9,587 $9,114     
                   
    Past Due Loans 30-89 Days$5,443 $4,682 $4,757 $3,684 $3,472     
    Past Due Loans 90 Days or More -  -  -  126  -     
    Classified Loans 26,406  22,219  22,889  27,039  29,583     
    Performing Troubled Debt Restructuring's$18,737 $20,791 $22,084 $28,661 $29,981     
                   
    Nonperforming Loans as a % of Loans 0.30% 0.28% 0.39% 0.39% 0.33%    
    Nonperforming Assets as a % of Loans and              
      Other Real Estate 0.36% 0.39% 0.51% 0.54% 0.52%    
    Nonperforming Assets as a % of Total Assets 0.22% 0.23% 0.31% 0.34% 0.32%    
                   
    (1) Annualized              


    CAPITAL CITY BANK GROUP, INC.                                           
    AVERAGE BALANCE AND INTEREST RATES(1)
                                               
    Unaudited                                                 
                                                      
      Second Quarter 2019  First Quarter 2019  Fourth Quarter 2018  Third Quarter 2018  Second Quarter 2018  Jun 2019 YTD  Jun 2018 YTD 
    (Dollars in thousands) Average
    Balance
     Interest Average
    Rate
      Average
    Balance
     Interest Average
    Rate
      Average
    Balance
     Interest Average
    Rate
      Average
    Balance
     Interest Average
    Rate
      Average
    Balance
     Interest Average
    Rate
      Average
    Balance
     Interest Average
    Rate
      Average
    Balance
     Interest Average
    Rate
     
    ASSETS:                                                 
    Loans, Net of Unearned Interest$1,823,311  23,873 5.25%$1,780,406  22,718 5.18%$1,785,570  22,556 5.01%$1,747,093  21,733 4.94%$1,691,287  20,625 4.89%$1,801,977  46,591 5.21%$1,669,571  40,261 4.86%
                                                      
    Investment Securities                                                 
    Taxable Investment Securities 614,775  3,301 2.15  618,127  3,387 2.20  637,735  3,325 2.08  663,639  3,290 1.98  643,516  2,945 1.83  616,442  6,688 2.18  631,394  5,468 1.74 
    Tax-Exempt Investment Securities 29,342  116 1.58  40,575  158 1.56  50,362  193 1.54  60,952  229 1.50  72,478  266 1.47  34,928  274 1.57  78,605  584 1.49 
                                                      
    Total Investment Securities 644,117  3,417 2.12  658,702  3,545 2.16  688,097  3,518 2.04  724,591  3,519 1.94  715,994  3,211 1.79  651,370  6,962 2.14  709,999  6,052 1.71 
                                                      
    Funds Sold 251,789  1,507 2.40  265,694  1,593 2.43  80,815  461 2.26  63,608  302 1.88  158,725  730 1.84  258,703  3,100 2.42  199,593  1,647 1.66 
                                                      
    Total Earning Assets 2,719,217 $28,797 4.25% 2,704,802 $27,856 4.17% 2,554,482 $26,535 4.12% 2,535,292 $25,554 4.00% 2,566,006 $24,566 3.84% 2,712,050 $56,653 4.21% 2,579,163 $47,960 3.75%
                                                      
    Cash and Due From Banks 51,832       53,848       52,344       49,493       50,364       52,834       51,531      
    Allowance for Loan Losses (14,513)      (14,347)      (14,642)      (14,146)      (13,521)      (14,431)      (13,586)     
    Other Assets 254,126       252,208       257,061       256,285       258,255       253,173       259,418      
                                                      
    Total Assets$3,010,662      $2,996,511      $2,849,245      $2,826,924      $2,861,104      $3,003,626      $2,876,526      
                                                      
    LIABILITIES:                                                 
    Interest Bearing Deposits                                                 
    NOW Accounts$832,982 $1,623 0.78%$884,277 $1,755 0.80%$739,225 $995 0.53%$733,255 $773 0.42%$790,335 $725 0.37%$858,488 $3,378 0.79%$826,554 $1,384 0.34%
    Money Market Accounts 237,921  265 0.45  239,516  247 0.42  248,486  216 0.34  254,440  190 0.30  255,143  166 0.26  238,714  512 0.43  250,883  269 0.22 
    Savings Accounts 371,716  46 0.05  364,783  44 0.05  356,723  44 0.05  352,833  43 0.05  351,664  43 0.05  368,268  90 0.05  347,847  85 0.05 
    Time Deposits 115,442  54 0.19  118,839  53 0.18  123,193  57 0.18  129,927  62 0.19  134,171  61 0.18  117,131  107 0.18  137,248  125 0.18 
    Total Interest Bearing Deposits 1,558,061  1,988 0.51% 1,607,415  2,099 0.53% 1,467,627  1,312 0.37% 1,470,455  1,068 0.30% 1,531,313  995 0.27% 1,582,601  4,087 0.52% 1,562,532  1,863 0.25%
                                                      
    Short-Term Borrowings 9,625  31 1.30% 11,378  35 1.26% 15,424  53 1.36% 12,949  41 1.24% 6,633  8 0.49% 10,497  66 1.28% 7,745  16 0.42%
    Subordinated Notes Payable 52,887  596 4.46  52,887  608 4.60  52,887  572 4.23  52,887  568 4.20  52,887  552 4.13  52,887  1,204 4.53  52,887  1,027 3.86 
    Other Long-Term Borrowings 7,509  66 3.53  8,199  72 3.55  9,918  85 3.40  12,729  92 2.87  13,151  94 2.88  7,853  138 3.54  13,467  194 2.91 
                                                      
    Total Interest Bearing Liabilities 1,628,082 $2,681 0.66% 1,679,879 $2,814 0.68% 1,545,856 $2,022 0.54% 1,549,020 $1,769 0.47% 1,603,984 $1,649 0.43% 1,653,838 $5,495 0.67% 1,636,631 $3,100 0.40%
                                                      
    Noninterest Bearing Deposits 1,007,370       957,300       944,748       921,817       900,643       982,473       881,433      
    Other Liabilities 61,611       52,070       56,445       58,330       64,671       56,867       68,796      
                                                      
    Total Liabilities 2,697,063       2,689,249       2,547,049       2,529,167       2,569,298       2,693,178       2,586,860      
                                                      
    SHAREOWNERS' EQUITY: 313,599       307,262       302,196       297,757       291,806       310,448       289,666      
                                                      
    Total Liabilities and Shareowners' Equity$3,010,662      $2,996,511      $2,849,245      $2,826,924      $2,861,104      $3,003,626      $2,876,526      
                                                      
    Interest Rate Spread  $26,116 3.59%  $25,042 3.49%  $24,513 3.58%  $23,785 3.53%  $22,917 3.41%  $51,158 3.54%  $44,860 3.35%
                                                      
    Interest Income and Rate Earned(1)   28,797 4.25    27,856 4.17    26,535 4.12    25,554 4.00    24,566 3.84    56,653 4.21    47,960 3.75 
    Interest Expense and Rate Paid(2)   2,681 0.40    2,814 0.42    2,022 0.31    1,769 0.28    1,649 0.26    5,495 0.41    3,100 0.24 
                                                      
    Net Interest Margin  $26,116 3.85%  $25,042 3.75%  $24,513 3.81%  $23,785 3.72%  $22,917 3.58%  $51,158 3.80%  $44,860 3.51%
                                                      
    (1)  Interest and average rates are calculated on a tax-equivalent basis using a 21% Federal tax rate.                             
    (2)  Rate calculated based on average earning assets.         


    For Information Contact:
    J. Kimbrough Davis
    Executive Vice President and Chief Financial Officer
    850.402.7820

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