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Capital City Bank Group, Inc. Reports First Quarter 2020 Results

TALLAHASSEE, Fla., April 23, 2020 (GLOBE NEWSWIRE) -- Capital City Bank Group, Inc. (CCBG) today reported net income of $4.3 million, or $0.25 per diluted share for the first quarter of 2020 compared to net income of $8.6 million, or $0.51 per diluted share for the fourth quarter of 2019, and $6.4 million, or $0.38 per diluted share for the first quarter of 2019. 

Net income for the first quarter of 2020 included a $5.0 million provision for credit losses, which exceeded net loan charge-offs of $1.1 million.  The higher provision reflected a build in reserves due to deteriorating economic conditions related to COVID-19. 

HIGHLIGHTS

  • Diversified revenue and strong balance sheet buffered impact of COVID-19 and Fed interest rate actions

  • Average loans (ex-held for sale) up 0.8% sequentially and 4.2% over 2019

  • Loan loss provision of $5.0 million reflected reserve build for COVID-19 impact

  • March 1st acquisition of a 51% membership interest in Brand Mortgage Group, LLC (now operated as Capital City Home Loans (“CCHL”)) – nominal net impact on earnings

“After posting a solid 2019, the country now finds itself in a highly uncertain economic environment, but Capital City enters this cycle in a strong financial position,” said William G. Smith, Jr., Chairman, President and CEO.  “A lot has transpired over the last three months.  Along with many other banks, our team has been busy accepting and processing SBA Paycheck Protection Program loan applications and is glad to be in a position to assist our small business clients in this time of need.  On March 1st we consummated our strategic alliance with Capital City Home Loans and I am excited to welcome our new partners in the mortgage banking business, which should triple our historical production levels.  During the first quarter we adopted the new loan loss reserve accounting methodology referred to as “CECL” and booked a provision of $5.0 million primarily to address potential credit issues that may arise as a result of the COVID-19 pandemic.  Compared to December 31, 2019, our reserve increased $7.2 million or 52%.  While the first quarter brought forth many challenges, I believe our underlying fundamentals remain intact.  On April 1st I am proud to share with you that we celebrated our 125th birthday.  During our history we have weathered the Great Depression, two world wars and the more recent financial crisis.  We will, once again, with a prudent and measured approach look to manage through this impending crisis by focusing on our associates, communities, clients and shareowners.  I continue to be optimistic about the long-term outlook for Capital City and appreciate your continued support.”

COVID-19 Response

Clients

  • Implemented business continuity plans to help ensure that clients have adequate access to banking services while at the same time working to protect clients through heightened safety procedures

  • SBA PPP loan approvals of $145 million in first phase of funding – will continue to actively assist clients under this program

  • Implemented loan extension program to support eligible clients and communities throughout this period of uncertainty

  • Announced temporary closure of banking office lobbies (operating drive-thru only) – focused on the enhanced digital banking experience

Associates

  • Heightened safety procedures, including social-distancing for essential associates and work-at-home arrangements for non-essential associates

  • Increased hourly wage for non-exempt associates for a period of time

  • Increased paid time off for affected associates for a period of time

  • Enhanced medical benefits in the short-term

Discussion of Operating Results

Summary Overview

Compared to the fourth quarter of 2019, the $5.8 million decrease in operating profit was attributable to a $5.2 million increase in the provision for credit losses, higher noninterest expense of $1.8 million, and lower net interest income of $0.5 million, partially offset by higher noninterest income of $1.7 million. 

Compared to the first quarter of 2019, the $3.2 million decrease in operating profit reflected a $4.2 million increase in the provision for credit losses and higher noninterest expense of $2.8 million, partially offset by higher noninterest income of $2.9 million and net interest income of $0.9 million.

Our return on average assets (“ROA”) was 0.57% and our return on average equity (“ROE”) was 5.20% for the first quarter of 2020.  These metrics were 1.14% and 10.39% for the fourth quarter of 2019, respectively, and 0.87% and 8.49% for the first quarter of 2019, respectively. 

Net Interest Income/Net Interest Margin

Tax-equivalent net interest income for the first quarter of 2020 was $25.9 million compared to $26.4 million for the fourth quarter of 2019 and $25.0 million for the first quarter of 2019.  The decrease in tax-equivalent net interest income compared to the prior quarter reflects lower rates earned on overnight funds, investment securities and variable rate loans, partially offset by a lower cost on our negotiated rate deposits.  The increase in tax-equivalent net interest income compared to the first quarter of 2019 was primarily due to loan growth and a reduction in the cost of our negotiated rate deposits, partially offset by lower rates on our earning assets.

The federal funds target rate ended the first quarter of 2020 in a range of 0.00%-0.25%, after two unscheduled FED cuts during the quarter totaling 150 basis points.  These rate decreases have resulted in lower repricing of our variable and adjustable rate earning assets.  We continue to prudently manage our deposit mix and overall cost of funds, which was 23 basis points for the first quarter of 2020 compared to 26 basis points for the fourth quarter of 2019.  Due to highly competitive fixed-rate loan pricing in our markets, we continue to review our loan pricing and make adjustments where we believe appropriate and prudent.     

Our net interest margin for the first quarter of 2020 was 3.78%, a decrease of 11 basis points compared to the fourth quarter of 2019 and an increase of three basis points over the first quarter of 2019.  The decrease in margin compared to the fourth quarter of 2019 was attributable to lower rates on our variable and adjustable rate earning assets.  The increase in the margin compared to the first quarter of 2019 was due to a 19 basis point reduction in our cost of funds, partially offset by a 16 basis point reduction in yield on earning assets.

Provision for Credit Loss

The provision for credit losses for the first quarter of 2020 was $5.0 million which exceeded net loan charge-offs of $1.1 million.  The increase in the provision for the first quarter of 2020 reflected a build in reserves due to deteriorating economic conditions related to COVID-19.  We discuss this exposure further below.

Noninterest Income and Noninterest Expense

Noninterest income for the first quarter of 2020 totaled $15.5 million compared to $13.8 million for the fourth quarter of 2019 and $12.6 million for the first quarter of 2019.  The increase over both periods was primarily attributable to higher mortgage banking fees, which reflected the acquisition of a 51% membership interest in Brand Mortgage Group, LLC that became effective on March 1, 2020.  Higher deposit fees also contributed to the increase in both periods and bank card fees contributed to the increase over the first quarter of 2019.         

Noninterest expense for the first quarter of 2020 totaled $31.0 million compared to $29.1 million for the fourth quarter of 2019 and $28.2 million for the first quarter of 2019.  The increase over the fourth quarter of 2019 was primarily attributable to higher compensation expense of $2.4 million and occupancy expense of $0.3 million, partially offset by lower other real estate (“ORE”) expense of $0.9 million.  The increase in compensation and occupancy expense was primarily due to the aforementioned integration of the Brand Mortgage acquisition.  The reduction in ORE expense reflected a $1.0 million gain on the sale of a banking office.  The same aforementioned factors were the primary drivers in the variance compared to the first quarter of 2019.

CCHL’s mortgage banking operations impacted our noninterest income and noninterest expense for the first quarter of 2020, and thus, the period over period comparison due to the late quarter closing.  Overall, CCHL operations for the month of March had a nominal impact on our net income for the first quarter of 2020.  Excluding CCHL, our noninterest income totaled $13.3 million and noninterest expense totaled $28.0 million for the first quarter of 2020. 

Income Taxes

We realized income tax expense of $1.3 million (effective rate of 24%) for the first quarter of 2020 compared to $2.5 million (effective rate of 23%) for the fourth quarter of 2019 and $2.1 million (effective rate of 24%) for the first quarter of 2019.  Absent discrete items, we expect our annual effective tax rate to approximate 24%. 

Discussion of Financial Condition

Earning Assets

Average earning assets were $2.752 billion for the first quarter of 2020, an increase of $57.2 million, or 2.1%, over the fourth quarter of 2019, and an increase of $47.1 million, or 1.7%, over the first quarter of 2019.  The increase in average earning assets from the fourth quarter of 2019 was primarily driven by higher deposit balances which funded growth in the loan and investment portfolios.  The change in the earning asset mix compared to the first quarter 2019 reflected higher loan balances that were funded with overnight funds and investment balances.      

We maintained an average net overnight funds (deposits with banks plus FED funds sold less FED funds purchased) sold position of $234.4 million during the first quarter of 2020 compared to $228.1 million in the fourth quarter of 2019 and $265.7 million in the first quarter of 2019.  The increase in the average net overnight funds compared to the fourth quarter of 2019 was driven by higher deposit balances, primarily seasonally higher public fund balances.  The decrease in overnight funds compared to the first quarter of 2019 was driven by loan growth.    

Average loans (excluding held for sale (“HFS”) loans) increased $13.7 million, or 0.8% compared to the fourth quarter of 2019 and $74.8 million, or 4.2% compared to the first quarter of 2019.  Average HFS loans increased $22.8 million and $27.5 million over the same respective periods primarily reflecting the integration of CCHL.  The increase (excluding HFS loans) reflected growth in all loan types except commercial, institutional, and HELOCs.  The increase compared to the first quarter of 2019 reflected growth in all loan types, except institutional and HELOCs.  Loan demand from the SBA Paycheck Protection Program has been extremely strong, resulting in 1,062 loan requests totaling $145 million that have been approved for funding in the first phase of the program.  The majority, if not all, of these loans are expected to be funded from our current on balance sheet liquidity.    

Allowance for Credit Losses

At March 31, 2020, the allowance for credit losses of $21.1 million represented 1.13% of outstanding loans (excluding HFS loans) and provided coverage of 433% of nonperforming loans compared to $13.9 million, or 0.75% and 311% of loans at December 31, 2019.  The adoption of ASC 326 (“CECL”) on January 1, 2020 had an impact of $4.0 million ($3.3 million increase in the allowance for credit losses and $0.7 million increase in the allowance for unfunded loan commitments (liability account)).  The $3.9 million build in the allowance for credit losses for the first quarter of 2020 reflected a forecasted decline in economic conditions, primarily a higher rate of unemployment due to the impact of the COVID-19 pandemic.   

Credit Quality/COVID-19 Exposure

Nonperforming assets (nonaccrual loans and OREO) totaled $6.3 million at March 31, 2020, a $0.9 million increase over December 31, 2019 and a $0.6 million decrease from March 31, 2019.  Nonaccrual loans totaled $4.9 million at March 31, 2020, a $0.4 million increase over December 31, 2019 and a $0.2 million decrease from March 31, 2019.   The balance of OREO totaled $1.5 million at March 31, 2020, an increase of $0.5 million over December 31, 2019 and a $0.4 million decrease from March 31, 2019.

We continue to analyze our loan portfolio for segments that might be directly affected by the stressed economic and business conditions caused by the pandemic.  Certain at-risk segments total 11% of our loan balances at March 31, 2020, including hotel (3%), restaurant (1%), retail and shopping centers (5%), stock secured (1%), and other (1%).  The other segment includes churches, non-profits, education, and recreational.  To assist our clients, we implemented a loan extension program in mid-March that allows for a 60 day extension for affected borrowers.  Through April 15th, we have extended 1,069 loans totaling $268 million (14% of loan portfolio).  Approximately 85% of these loans were for commercial borrowers and 15% for consumer borrowers.        

Funding (Deposits/Debt)

Average total deposits were $2.553 billion for the first quarter of 2020, an increase of $27.7 million, or 1.1% over the fourth quarter of 2019, and a decrease of $12.0 million, or 0.5% over the first quarter of 2019.  The increase in average deposits compared to the fourth quarter of 2019 reflected increases in negotiated NOW public fund deposits and savings accounts.  The seasonal influx of negotiated public NOW accounts has most likely peaked for this cycle, and is expected to gradually decline through the fourth quarter of 2020.  The decrease in average deposits compared to the first quarter of 2019 was primarily due to declines in certificates of deposit, MMAs, and one large, non-public negotiated account, which were partially offset by increases in noninterest bearing accounts and savings accounts.

Deposit levels remain strong, and average core deposits grew over last quarter.  As a result of the Coronavirus Aid, Relief, and Economic Security (CARES) Act, and our participation in the Paycheck Participation Program (PPP) to support small businesses, the potential exists for our deposit levels to be volatile over the coming quarters due to the government’s distribution of economic impact payments and the funding of PPP loans.  It is anticipated that current liquidity levels will remain adequate due to our strong overnight funds sold position, in addition to cash flow generated from the investment portfolio. However, if necessary, short-term advances from the FHLB or FRB could be considered.  We monitor deposit rates on an ongoing basis and adjust if necessary, as a prudent pricing discipline remains the key to managing our mix of deposits.

Average borrowings increased $25.1 million compared to the fourth quarter of 2019 and increased $19.6 million compared to the first quarter of 2019.  The increase over both prior periods reflected short-term borrowings added as part of the Capital City Home Loans acquisition (warehouse lines used to support HFS loans).

Capital

Shareowners’ equity was $328.5 million at March 31, 2020 compared to $327.0 million at December 31, 2019 and $309.0 million at March 31, 2019.  During the first quarter of 2020, shareowners’ equity was positively impacted by net income of $4.3 million, a $2.6 million increase in the unrealized gain on investment securities, net adjustments totaling $0.5 million related to transactions under our stock compensation plans, and stock compensation accretion of $0.3 million.  Shareowners’ equity was reduced by a $3.1 million (net of tax) adjustment to retained earnings for the adoption of ASC 326 (“CECL”), common stock dividend of $2.4 million ($0.14 per share) and shares repurchases of $0.7 million (33,074 shares).

At March 31, 2020, our total risk-based capital ratio was 17.19% compared to 17.90% at December 31, 2019 and 17.09% at March 31, 2019.  Our common equity tier 1 capital ratio was 13.55%, 14.47%, and 13.62%, respectively, on these dates.  Our leverage ratio was 10.81%, 11.25%, and 10.53%, respectively, on these dates.  All of our regulatory capital ratios exceeded the threshold to be designated as “well-capitalized” under the Basel III capital standards.  Further, our tangible common equity ratio was 7.98% at March 31, 2020 compared to 8.06% and 7.56% at December 31, 2019 and March 31, 2019, respectively.                      

About Capital City Bank Group, Inc.

Capital City Bank Group, Inc. (CCBG) is one of the largest publicly traded financial holding companies headquartered in Florida and has approximately $3.1 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 85 ATMs/ITMs 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 magnitude and duration of the COVID-19 pandemic and its impact on the global economy and financial market conditions and our business, results of operations and financial condition, including the impact of our participation in government programs related to COVID-19; the accuracy of the our financial statement estimates and assumptions; legislative or regulatory changes; 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; natural disasters, widespread health emergencies, military conflict, terrorism or other geopolitical events; 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; 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, 2019, 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 a 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 reconciliations are provided below.

(Dollars in Thousands, except per share data)

Mar 31, 2020

Dec 31, 2019

Sep 30, 2019

Jun 30, 2019

Mar 31, 2019

Shareowners' Equity (GAAP)

 

$

328,507

 

$

327,016

 

$

321,562

 

$

314,595

 

$

308,986

 

Less: Goodwill (GAAP)

 

 

89,275

 

 

84,811

 

 

84,811

 

 

84,811

 

 

84,811

 

Tangible Shareowners' Equity (non-GAAP)

A

 

239,232

 

 

242,205

 

 

236,751

 

 

229,784

 

 

224,175

 

Total Assets (GAAP)

 

 

3,086,523

 

 

3,088,953

 

 

2,934,513

 

 

3,017,654

 

 

3,052,051

 

Less: Goodwill (GAAP)

 

 

89,275

 

 

84,811

 

 

84,811

 

 

84,811

 

 

84,811

 

Tangible Assets (non-GAAP)

B

$

2,997,248

 

$

3,004,142

 

$

2,849,702

 

$

2,932,843

 

$

2,967,240

 

Tangible Common Equity Ratio (non-GAAP)

A/B

 

7.98

%

 

8.06

%

 

8.31

%

 

7.83

%

 

7.56

%

Actual Diluted Shares Outstanding (GAAP)

C

 

16,878,536

 

 

16,855,161

 

 

16,797,241

 

 

16,773,449

 

 

16,840,496

 

Tangible Book Value per Diluted Share (non-GAAP)

A/C

$

14.17

 

$

14.37

 

$

14.09

 

$

13.70

 

$

13.31

 


 

 

 

 

 

 

 

 

 

 

 

 

 

 

CAPITAL CITY BANK GROUP, INC.

 

 

 

 

 

 

EARNINGS HIGHLIGHTS

 

 

 

 

 

 

Unaudited

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

(Dollars in thousands, except per share data)

 

Mar 31, 2020

 

Dec 31, 2019

 

Mar 31, 2019

EARNINGS

 

 

 

 

 

 

Net Income

$

4,287

 

$

8,565

 

$

6,436

 

Diluted Net Income Per Share

$

0.25

 

$

0.51

 

$

0.38

 

PERFORMANCE

 

 

 

 

 

 

Return on Average Assets

 

0.57

%

 

1.14

%

 

0.87

%

Return on Average Equity

 

5.20

%

 

10.39

%

 

8.49

%

Net Interest Margin

 

3.78

%

 

3.89

%

 

3.75

%

Noninterest Income as % of Operating Revenue

 

37.52

%

 

34.50

%

 

33.51

%

Efficiency Ratio

 

74.89

%

 

72.48

%

 

75.01

%

CAPITAL ADEQUACY

 

 

 

 

 

 

Tier 1 Capital

 

16.12

%

 

17.16

%

 

16.34

%

Total Capital

 

17.19

%

 

17.90

%

 

17.09

%

Leverage

 

10.81

%

 

11.25

%

 

10.53

%

Common Equity Tier 1

 

13.55

%

 

14.47

%

 

13.62

%

Tangible Common Equity (1)

 

7.98

%

 

8.06

%

 

7.56

%

Equity to Assets

 

10.64

%

 

10.59

%

 

10.12

%

ASSET QUALITY

 

 

 

 

 

 

Allowance as % of Non-Performing Loans

 

432.61

%

 

310.99

%

 

279.77

%

Allowance as a % of Loans

 

1.13

%

 

0.75

%

 

0.78

%

Net Charge-Offs as % of Average Loans

 

0.23

%

 

0.05

%

 

0.20

%

Nonperforming Assets as % of Loans and OREO

 

0.34

%

 

0.29

%

 

0.39

%

Nonperforming Assets as % of Total Assets

 

0.21

%

 

0.18

%

 

0.23

%

STOCK PERFORMANCE

 

 

 

 

 

 

High

$

30.62

 

$

30.95

 

$

25.87

 

Low

 

15.61

 

 

25.75

 

 

21.04

 

Close

$

20.12

 

$

30.50

 

$

21.78

 

Average Daily Trading Volume

 

40,536

 

 

41,247

 

 

18,407

 

 

 

 

 

 

 

 

(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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2020

 

2019

(Dollars in thousands)

First Quarter

 

Fourth Quarter

 

Third Quarter

 

Second Quarter

 

First Quarter

ASSETS

 

 

 

 

 

 

 

 

 

 

Cash and Due From Banks

$

72,676

 

$

60,087

 

$

61,151

 

$

53,731

 

$

49,501

 

Funds Sold and Interest Bearing Deposits

 

196,936

 

 

318,336

 

 

177,389

 

 

234,097

 

 

304,213

 

Total Cash and Cash Equivalents

 

269,612

 

 

378,423

 

 

238,540

 

 

287,828

 

 

353,714

 

 

 

 

 

 

 

 

 

 

 

 

Investment Securities Available for Sale

 

382,514

 

 

403,601

 

 

376,981

 

 

410,851

 

 

429,016

 

Investment Securities Held to Maturity

 

251,792

 

 

239,539

 

 

240,303

 

 

229,516

 

 

226,179

 

Total Investment Securities

 

634,306

 

 

643,140

 

 

617,284

 

 

640,367

 

 

655,195

 

 

 

 

 

 

 

 

 

 

 

 

Loans Held for Sale

 

80,535

 

 

9,509

 

 

13,075

 

 

9,885

 

 

4,557

 

 

 

 

 

 

 

 

 

 

 

 

Loans, Net of Unearned Interest

 

 

 

 

 

 

 

 

 

 

Commercial, Financial, & Agricultural

 

249,020

 

 

255,365

 

 

259,870

 

 

265,001

 

 

238,942

 

Real Estate - Construction

 

122,595

 

 

115,018

 

 

111,358

 

 

101,372

 

 

87,123

 

Real Estate - Commercial

 

656,084

 

 

625,556

 

 

610,726

 

 

614,618

 

 

615,129

 

Real Estate - Residential

 

354,150

 

 

353,642

 

 

354,545

 

 

349,843

 

 

338,574

 

Real Estate - Home Equity

 

196,443

 

 

197,360

 

 

197,326

 

 

201,579

 

 

209,194

 

Consumer

 

275,981

 

 

279,565

 

 

277,970

 

 

288,196

 

 

296,351

 

Other Loans

 

6,580

 

 

7,808

 

 

14,248

 

 

13,131

 

 

10,430

 

Overdrafts

 

1,534

 

 

1,615

 

 

1,710

 

 

1,442

 

 

1,362

 

Total Loans, Net of Unearned Interest

 

1,862,387

 

 

1,835,929

 

 

1,827,753

 

 

1,835,182

 

 

1,797,105

 

Allowance for Loan Losses

 

(21,083

)

 

(13,905

)

 

(14,319

)

 

(14,593

)

 

(14,120

)

Loans, Net

 

1,841,304

 

 

1,822,024

 

 

1,813,434

 

 

1,820,589

 

 

1,782,985

 

 

 

 

 

 

 

 

 

 

 

 

Premises and Equipment, Net

 

87,684

 

 

84,543

 

 

85,810

 

 

86,005

 

 

86,846

 

Goodwill

 

89,275

 

 

84,811

 

 

84,811

 

 

84,811

 

 

84,811

 

Other Real Estate Owned

 

1,463

 

 

953

 

 

526

 

 

1,010

 

 

1,902

 

Other Assets

 

82,344

 

 

65,550

 

 

81,033

 

 

87,159

 

 

82,041

 

Total Other Assets

 

260,766

 

 

235,857

 

 

252,180

 

 

258,985

 

 

255,600

 

Total Assets

$

3,086,523

 

$

3,088,953

 

$

2,934,513

 

$

3,017,654

 

$

3,052,051

 

 

 

 

 

 

 

 

 

 

 

 

LIABILITIES

 

 

 

 

 

 

 

 

 

 

Deposits:

 

 

 

 

 

 

 

 

 

 

Noninterest Bearing Deposits

$

1,066,607

 

$

1,044,699

 

$

1,022,774

 

$

1,024,898

 

$

995,853

 

NOW Accounts

 

779,467

 

 

902,499

 

 

728,395

 

 

810,568

 

 

887,453

 

Money Market Accounts

 

210,124

 

 

217,839

 

 

239,410

 

 

240,181

 

 

244,628

 

Regular Savings Accounts

 

384,480

 

 

374,396

 

 

372,601

 

 

371,773

 

 

372,414

 

Certificates of Deposit

 

104,907

 

 

106,021

 

 

109,827

 

 

113,684

 

 

116,946

 

Total Deposits

 

2,545,585

 

 

2,645,454

 

 

2,473,007

 

 

2,561,104

 

 

2,617,294

 

 

 

 

 

 

 

 

 

 

 

 

Short-Term Borrowings

 

76,516

 

 

6,404

 

 

10,622

 

 

9,753

 

 

8,983

 

Subordinated Notes Payable

 

52,887

 

 

52,887

 

 

52,887

 

 

52,887

 

 

52,887

 

Other Long-Term Borrowings

 

5,896

 

 

6,514

 

 

6,963

 

 

7,313

 

 

7,661

 

Other Liabilities

 

70,044

 

 

50,678

 

 

69,472

 

 

72,002

 

 

56,240

 

Total Liabilities

 

2,750,928

 

 

2,761,937

 

 

2,612,951

 

 

2,703,059

 

 

2,743,065

 

 

 

 

 

 

 

 

 

 

 

 

Temporary Equity

 

7,088

 

 

-

 

 

-

 

 

-

 

 

-

 

 

 

 

 

 

 

 

 

 

 

 

SHAREOWNERS' EQUITY

 

 

 

 

 

 

 

 

 

 

Common Stock

 

168

 

 

168

 

 

167

 

 

167

 

 

168

 

Additional Paid-In Capital

 

32,100

 

 

32,092

 

 

31,075

 

 

30,751

 

 

31,929

 

Retained Earnings

 

321,772

 

 

322,937

 

 

316,551

 

 

310,247

 

 

304,763

 

Accumulated Other Comprehensive Loss, Net of Tax

 

(25,533

)

 

(28,181

)

 

(26,231

)

 

(26,570

)

 

(27,874

)

Total Shareowners' Equity

 

328,507

 

 

327,016

 

 

321,562

 

 

314,595

 

 

308,986

 

Total Liabilities, Temporary Equity and Shareowners' Equity

$

3,086,523

 

$

3,088,953

 

$

2,934,513

 

$

3,017,654

 

$

3,052,051

 

 

 

 

 

 

 

 

 

 

 

 

OTHER BALANCE SHEET DATA

 

 

 

 

 

 

 

 

 

 

Earning Assets

$

2,774,165

 

$

2,806,913

 

$

2,635,501

 

$

2,719,530

 

$

2,761,070

 

Interest Bearing Liabilities

 

1,614,277

 

 

1,666,560

 

 

1,520,705

 

 

1,606,159

 

 

1,690,972

 

Book Value Per Diluted Share

$

19.46

 

$

19.40

 

$

19.14

 

$

18.76

 

$

18.35

 

Tangible Book Value Per Diluted Share(1)

 

14.17

 

 

14.37

 

 

14.09

 

 

13.70

 

 

13.31

 

Actual Basic Shares Outstanding

 

16,845

 

 

16,772

 

 

16,749

 

 

16,746

 

 

16,812

 

Actual Diluted Shares Outstanding

 

16,879

 

 

16,855

 

 

16,797

 

 

16,773

 

 

16,840

 

(1)  Tangible book value per diluted share 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 OPERATIONS

 

 

 

 

 

 

 

Unaudited

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2020

 

2019

(Dollars in thousands, except per share data)

 

First Quarter

 

Fourth Quarter

 

Third Quarter

 

Second Quarter

 

First Quarter

 

 

 

 

 

 

 

 

 

 

 

INTEREST INCOME

 

 

 

 

 

 

 

 

 

 

Interest and Fees on Loans

$

23,593

 

$

23,842

 

$

23,992

$

23,765

$

22,616

Investment Securities

 

3,015

 

 

3,221

 

 

3,307

 

3,393

 

3,513

Funds Sold

 

757

 

 

945

 

 

1,142

 

1,507

 

1,593

Total Interest Income

 

27,365

 

 

28,008

 

 

28,441

 

28,665

 

27,722

 

 

 

 

 

 

 

 

 

 

 

INTEREST EXPENSE

 

 

 

 

 

 

 

 

 

 

Deposits

 

939

 

 

1,157

 

 

1,596

 

1,988

 

2,099

Short-Term Borrowings

 

132

 

 

16

 

 

27

 

31

 

35

Subordinated Notes Payable

 

471

 

 

525

 

 

558

 

596

 

608

Other Long-Term Borrowings

 

50

 

 

56

 

 

63

 

66

 

72

Total Interest Expense

 

1,592

 

 

1,754

 

 

2,244

 

2,681

 

2,814

Net Interest Income

 

25,773

 

 

26,254

 

 

26,197

 

25,984

 

24,908

Provision for Credit Losses

 

4,990

 

 

(162

)

 

776

 

646

 

767

Net Interest Income after Provision for
  Loan Losses

 

20,783

 

 

26,416

 

 

25,421

 

25,338

 

24,141

 

 

 

 

 

 

 

 

 

 

 

NONINTEREST INCOME

 

 

 

 

 

 

 

 

 

 

Deposit Fees

 

5,015

 

 

4,980

 

 

4,961

 

4,756

 

4,775

Bank Card Fees

 

3,051

 

 

3,131

 

 

2,972

 

3,036

 

2,855

Wealth Management Fees

 

2,604

 

 

2,761

 

 

2,992

 

2,404

 

2,323

Mortgage Banking Fees

 

3,030

 

 

1,542

 

 

1,587

 

1,199

 

993

Other

 

1,778

 

 

1,414

 

 

1,391

 

1,375

 

1,606

Total Noninterest Income

 

15,478

 

 

13,828

 

 

13,903

 

12,770

 

12,552

 

 

 

 

 

 

 

 

 

 

 

NONINTEREST EXPENSE

 

 

 

 

 

 

 

 

 

 

Compensation

 

19,736

 

 

17,363

 

 

16,203

 

16,437

 

16,349

Occupancy, Net

 

4,979

 

 

4,680

 

 

4,710

 

4,537

 

4,509

Other Real Estate, Net

 

(798

)

 

102

 

 

6

 

75

 

363

Other

 

7,052

 

 

6,997

 

 

6,954

 

7,347

 

6,977

Total Noninterest Expense

 

30,969

 

 

29,142

 

 

27,873

 

28,396

 

28,198

 

 

 

 

 

 

 

 

 

 

 

OPERATING PROFIT

 

5,292

 

 

11,102

 

 

11,451

 

9,712

 

8,495

Income Tax Expense

 

1,282

 

 

2,537

 

 

2,970

 

2,387

 

2,059

Net Income

 

4,010

 

 

8,565

 

 

8,481

 

7,325

 

6,436

Net Loss Attributable to Noncontrolling Interest

 

277

 

 

-

 

 

-

 

-

 

-

Net Income Attributable to Common Shareowners

$

4,287

 

$

8,565

 

$

8,481

$

7,325

$

6,436

 

 

 

 

 

 

 

 

 

 

 

PER COMMON SHARE

 

 

 

 

 

 

 

 

 

 

Basic Net Income

$

0.25

 

$

0.51

 

$

0.51

$

0.44

$

0.38

Diluted Net Income

 

0.25

 

 

0.51

 

 

0.50

 

0.44

 

0.38

Cash Dividend

$

0.14

 

$

0.13

 

$

0.13

$

0.11

$

0.11

AVERAGE SHARES

 

 

 

 

 

 

 

 

 

 

Basic

 

16,815

 

 

16,750

 

 

16,747

 

16,791

 

16,791

Diluted

 

16,849

 

 

16,834

 

 

16,795

 

16,818

 

16,819


 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

CAPITAL CITY BANK GROUP, INC.

 

 

 

 

 

 

 

 

 

 

ALLOWANCE FOR CREDIT LOSSES

 

 

 

 

 

 

 

 

 

 

AND RISK ELEMENT ASSETS

 

 

 

 

 

 

 

 

 

 

Unaudited

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2020

 

2019

(Dollars in thousands, except per share data)

 

First Quarter

 

Fourth Quarter

 

Third Quarter