Attached files
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| 8-K - FORM 8K 03-31-2010 - CAPITAL CITY BANK GROUP INC | form8k_032010.htm |
Capital
City Bank Group, Inc.
Reports
First Quarter 2010 Results
TALLAHASSEE,
Fla. (April 19, 2010) – Capital City Bank Group, Inc. (NASDAQ: CCBG) today
reported a net loss of $3.5 million, or $0.20 per diluted share for the first
quarter of 2010 compared to a net loss of $3.4 million, or $0.20 per diluted
share in the fourth quarter of 2009 and net income of $0.7 million, or $0.04 per
diluted share for the first quarter of 2009.
The net
loss reported for the first quarter of 2010 reflects a loan loss provision of
$10.7 million, or $0.39 per diluted share versus $10.8 million, or $0.39 per
diluted share for the linked fourth quarter of 2009 and $8.4 million, or $0.30
per diluted share in the first quarter of 2009. Compared to the
linked fourth quarter of 2009, lower operating expenses of $1.9 million
contributed to earnings, but were offset by a $1.7 million reduction in
operating revenues (net interest income plus noninterest income) and a lower tax
benefit of $0.3 million.
“We believe many of the economic indicators across our footprint appear to be in the early stages of stabilization, but uncertainty and a weak economy continue to affect our banking markets. Consumers and businesses alike appear to be waiting for more economic certainty and confidence before resuming traditional spending patterns or business expansion plans. Although our margin remains strong at 4.21%, these market realities have adversely impacted loan volume and thereby our margin in recent quarters,” said William G. Smith, Jr., Chairman, President and Chief Executive Officer. “Concerning credit quality, we are encouraged by positive developments in some of our underlying credit metrics, specifically, a slowdown in the level of gross additions to our problem loans. Nonaccrual loans have declined for three consecutive quarters. The slight increase in total nonperforming assets this quarter was driven by migration into restructured loans, which are accruing interest and other real estate, which is an end stage to resolution. Migration of the problem loans from nonaccruing to the restructured and other real estate categories simply puts us in a stronger position to ultimately resolve these situations.”
“Without
question, this is the most difficult operating environment our team has faced
during our 20-30 year careers. We believe the collective experience
of our management team, knowledge of our local markets, strength of
our brand, healthy capital and the company’s underlying performance metrics will
enable us to successfully manage through this current economic cycle and
capitalize on opportunities as our markets recover,” said Smith.
The
Return on Average Assets was -0.52% and the Return on Average Equity was -5.23%
for the first quarter of 2010. These metrics were -0.52% and -5.03%,
respectively for the fourth quarter of 2009, and 0.11% and 0.94%, respectively
for the comparable quarter in 2009.
Discussion
of Financial Condition
Average
earning assets were $2.358 billion for the first quarter of 2010, an increase of
$120.7 million, or 5.4% from the fourth quarter of 2009, and an increase of
$192.1 million, or 8.9% from the first quarter of 2009. The
improvement from the fourth quarter is primarily attributable to an increase in
the overnight funds position of $190.5 million, partially offset by an $11.3
million and $58.5 million decrease in the investment and loan portfolios,
respectively. The improvement in the funds position primarily
reflects core deposit growth and to a lesser extent an influx of public
funds. Average loans declined throughout the portfolio driven by
reduction in the residential real estate and construction loan categories
primarily reflecting the transfer of loans to the other real estate category as
well as loan charge-offs. Additionally, the portfolio has been
impacted by diminished loan demand, primarily attributable to the weak economy,
as we have experienced lower production levels in recent
quarters. Compared to the first quarter of 2009, the increase in
average earning assets primarily reflects growth in the overnight funds position
partially offset by a reduction in the loan portfolio and investment
securities. Our loan production levels began to decline during the
second half of 2009 with the trend continuing through the recent
quarter.
Nonperforming
assets of $153.7 million increased from the linked fourth quarter by $9.6
million and from the first quarter of 2009 by $26.9
million. Nonaccrual loans decreased $9.9 million and $33.8 million,
respectively, from the same prior-year periods. For the first
quarter, the migration of loans into our problem loan pool slowed as the gross
additions declined for the second straight quarter and the level of our past due
loans improved significantly. More specifically, gross additions to
our portfolio of nonaccruing loans have declined in four of the last five
quarters, including the first quarter of 2010. Furthermore, our
collection and loan work-out efforts continue to produce positive momentum
reflective of the increased level of loans migrating into both the restructured
loan and other real estate categories. Restructured loans totaled
$30.8 million at the end of the first quarter reflecting an increase of $9.2
million over year-end 2009 and $25.7 million over the first quarter of
2009. Four large loans were added to the restructured category during
the first quarter and reflect our efforts to alleviate these borrowers near term
cash flow strains. Our current restructured loan portfolio consists
of 150 loans that are all on fully accruing status and maintain a weighted
average interest rate of 5.86%. Other real estate owned totaled $46.4
million at the end of the quarter compared to $36.1 million at year-end 2009 and
$11.4 million at the end of the first quarter of 2009, reflecting the continued
migration of our problem loan pool through the foreclosure process which has
picked up momentum over the last two quarters. Nonperforming assets
represented 8.10% of loans and other real estate at the end of the first quarter
compared to 7.38% at year-end 2009 and 6.39% at the end of the first quarter of
2009. The increase in this percentage is partially attributable to a
decline in loans outstanding.
Average
total deposits were $2.249 billion for the first quarter, an increase of $158.8
million, or 7.6%, from the fourth quarter and an increase of $291.4 million, or
14.9%, from the first quarter of 2009. On a linked quarter basis, the
increase reflects core deposit growth of approximately $66.3 million resulting
from a successful money market promotion, higher deposit balances maintained by
several larger, non-public depositors, as well as continued growth in our
Absolutely Free Checking (“AFC”) accounts. Additionally, average
public funds increased approximately $92.0 million from the linked quarter
attributable to seasonal inflow and the addition of new
relationships. The money market account promotion, which was launched
during the third quarter and concluded in the fourth quarter, has generated in
excess of $100.0 million in new deposit balances and served to support our core
deposit growth initiatives and to further strengthen the bank’s overall
liquidity position. Our AFC products continue to be successful as
both balances and the number of accounts continue to post growth quarter over
quarter. The improvement from the first quarter of 2009 primarily
reflects the increase in core deposits mentioned above.
We
maintained an average net overnight funds (deposits with banks plus Fed funds
sold less Fed funds purchased) sold position of $303.3
million during the first quarter of 2010 compared to an average net overnight
funds sold position of
$112.8 million in the fourth quarter of 2009 and an average overnight funds
purchased position of
$33.9 million in the first quarter of 2009. The favorable variance as
compared to both the fourth and first quarters of 2009, is primarily
attributable to the growth in core deposits mentioned above and net reductions
in both the loan and investment portfolios. The investment portfolio
was expanded at the end of the first quarter with the purchase of $50.0 million
of US Treasuries in relatively short maturities. If appropriate, we
will continue to look to deploy a portion of the funds sold position in the
investment portfolio during the second quarter.
Equity
capital was $262.0 million as of March 31, 2010, compared to $267.9 million as
of December 31, 2009 and $275.5 million as of March 31, 2009. Our
leverage ratio was 9.64%, 10.39%, and 11.25%, respectively, for the comparable
periods. Further, our risk-adjusted capital ratio of 14.16% at March
31, 2010 exceeds the 10.0% threshold to be designated as “well-capitalized”
under the risk-based regulatory guidelines. At March 31, 2010, our
tangible common equity ratio was 6.62%, compared to 6.84% at December 31, 2009
and 7.63% at March 31, 2009.
Discussion
of Operating Results
Tax
equivalent net interest income for the first quarter of 2010 was $24.5 million
compared to $25.8 million for the fourth quarter of 2009 and $27.6 million for
the first quarter of 2009. The decrease of $1.3 million in net
interest income on a linked quarter basis was due to two less calendar days, a
shift in earning asset mix and unfavorable asset repricing, partially offset by
a decrease in foregone interest on nonaccrual loans and lower interest
expense. Interest income was primarily impacted by declining balances
in our investment and loan portfolios as well as continued unfavorable repricing
in each of these portfolios. These unfavorable volume and rate variances were
partially offset by a favorable variance in foregone interest on nonaccrual
loans and a reduction in interest expense, primarily attributable to lower rates
on certificates of deposit and subordinated notes payable. With the
exception of calendar days, the $3.1 million unfavorable variance over the first
quarter of 2009 is primarily attributable to the trends as noted above in
comparing the first quarter 2010 to fourth quarter 2009.
The net
interest margin in the first quarter of 2010 was 4.21%, a decline of 38 basis
points over the linked quarter and 95 basis points over the first quarter of
2009. The lower margin is attributable to the shift in our earning
asset mix and unfavorable asset repricing, partially offset by a favorable
variance in our average cost of funds. Strong deposit growth in
recent quarters has improved our liquidity position, but has adversely impacted
our margin in the short term as a significant portion of this growth is
currently invested in overnight funds. When we determine what portion
of this growth is permanent we will begin deploying the overnight funds into
higher yielding earning assets. As noted earlier, late in the first
quarter we invested an additional $50 million in the investment
portfolio.
The
provision for loan losses for the current quarter was $10.7 million compared to
$10.8 million in the linked fourth quarter of 2009 and $8.4 million for the
first quarter of 2009. The provision for the current quarter
primarily reflects required reserves for loans added to impaired status during
the quarter and to a lesser extent collateral devaluation on existing impaired
loans. An increase in loan loss factors also impacted the level of
loan loss provision for the quarter. Net charge-offs in the first
quarter totaled $13.5 million, or 2.91%, of average loans compared to $11.8
million, or 2.42% in the linked fourth quarter of 2009 and $5.2 million, or
1.08% in the first quarter of 2009. The increase in net charge-offs
compared to the linked fourth quarter reflects losses recorded on three large
previously impaired loans that are working through the foreclosure process –
these loans were substantially reserved for in the prior quarter. At
quarter-end, the allowance for loan losses was 2.23% of outstanding loans (net
of overdrafts) and provided coverage of 38% of nonperforming loans compared to
2.30% and 41%, respectively, at the end of the prior quarter.
Noninterest
income for the first quarter decreased $444,000, or 3.1%, from the fourth
quarter of 2009 and declined $75,000, or 0.53%, from the first quarter of
2009. Compared to the linked fourth quarter, the decrease is
attributable to lower deposit fees ($554,000) and retail brokerage fees
($207,000), partially offset by higher merchant fees ($320,000). The
reduction in deposit fees compared to the prior linked quarter reflects a
two-day calendar variance, and a lower level of NSF/overdraft activity
reflective of current economic conditions and a higher level of consumer
awareness that have both impacted consumer and business spending
habits. The decline in retail brokerage fees was driven by lower
trading volume by clients. The increase in merchant fees reflects
higher processing volume for our sole remaining merchant that is scheduled to
convert to another processor early in the third quarter. Compared to
the first quarter of 2009, the slight decline is attributable to a lower level
of merchant fees ($293,000) reflective of a higher number of remaining merchants
in early 2009. Partially offsetting the reduction in merchant fees
was an increase in bank card fees ($256,000) primarily driven by growth in
transaction accounts as well as a debit card rewards program that was
implemented in late 2009.
Noninterest
expense decreased $1.9 million, or 5.5%, from the fourth quarter of 2009 and
increased $1.1 million, or 3.5%, over the first quarter of 2009. The
decrease compared to the fourth quarter was driven by lower expense for other
real estate properties ($700,000), which includes holding costs as well as
valuation adjustments due to property devaluation. Lower expense for
loan collection legal support ($215,000), professional fees ($554,000),
advertising ($272,000), and intangible amortization ($301,000) also contributed
to the decline for the quarter. The reduction in legal expense was
due to a lower level of legal assistance needed for complex loan work-out
arrangements as well as various cost control strategies implemented to reduce
this cost. Professional fees was elevated in the fourth quarter due
to a one-time payment to a consulting firm for services related to a review of
our vendor maintenance contracts that will result in future cost
reductions. The decline in advertising expense primarily reflects
lower direct mail costs for our ongoing AFC product promotion and, to a lesser
extent, costs incurred in support of our money market account promotion, which
was recognized in the fourth quarter of 2009. Intangible amortization
declined due to the fact that the scheduled amortization of one of our core
deposit intangible assets concluded during the fourth quarter of
2009. Compared to the first quarter of 2009, the increase in
noninterest expense was attributable to higher expense for other real estate
properties ($1.8 million), partially offset by lower pension plan expense
($618,000).
We
realized a tax benefit of $2.7 million for the first quarter of 2010 and a tax
benefit of $3.0 million for the fourth quarter of 2009, both of which primarily
reflect the impact of a higher level of permanent book/tax differences
(primarily tax exempt income) in relation to our book operating
profit. The reduction in benefit for the current quarter primarily
reflects a lower level of tax exempt income.
About
Capital City Bank Group, Inc.
Capital
City Bank Group, Inc. (NASDAQ: CCBG) is one of the largest publicly traded
financial services companies headquartered in Florida and has approximately $2.7
billion in assets. The Company provides a full range of banking services,
including traditional deposit and credit services, asset management, trust,
mortgage banking, merchant services, bankcards, data processing and securities
brokerage services. The Company's bank subsidiary, Capital City Bank,
was founded in 1895 and now has 69 banking offices and 79 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 the Company’s
future results to differ materially. The following factors, among
others, could cause the Company’s actual results to differ: the frequency and
magnitude of foreclosure of the Company’s loans; the effects of the Company’s
lack of a diversified loan portfolio, including the risks of geographic and
industry concentrations; the accuracy of the Company’s financial statement
estimates and assumptions, including the estimate for the Company’s loan loss
provision; the Company’s ability to integrate acquisitions; the strength of the
U.S. economy and the local economies where the Company conducts operations;
harsh weather conditions; fluctuations in inflation, interest rates, or monetary
policies; changes in the stock market and other capital and real estate markets;
legislative or regulatory changes; customer acceptance of third-party products
and services; increased competition and its effect on
pricing; technological changes; the effects of security breaches and
computer viruses that may affect the Company’s computer systems; changes in
consumer spending and savings habits; the Company’s growth and
profitability; changes in accounting; and the Company’s ability to manage
the risks involved in the foregoing. Additional factors can be found
in the Company’s Annual Report on Form 10-K for the fiscal year ended December
31, 2009, and the Company’s 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 the Company assumes no obligation to update forward-looking statements or
the reasons why actual results could differ.
|
EARNINGS
HIGHLIGHTS
|
||||||||||||
|
Three
Months Ended
|
||||||||||||
|
(Dollars
in thousands, except per share data)
|
Mar
31, 2010
|
Dec
31, 2009
|
Mar
31, 2009
|
|||||||||
|
EARNINGS
|
||||||||||||
|
Net
Income
|
$ | (3,463 | ) | (3,407 | ) | $ | 650 | |||||
|
Diluted
Earnings Per Common Share
|
$ | (0.20 | ) | (0.20 | ) | $ | 0.04 | |||||
|
PERFORMANCE
|
||||||||||||
|
Return
on Average Equity
|
-5.23 | % | -5.03 | % | 0.94 | % | ||||||
|
Return
on Average Assets
|
-0.52 | % | -0.52 | % | 0.11 | % | ||||||
|
Net
Interest Margin
|
4.21 | % | 4.59 | % | 5.16 | % | ||||||
|
Noninterest
Income as % of Operating Revenue
|
36.77 | % | 36.30 | % | 34.22 | % | ||||||
|
Efficiency
Ratio
|
85.00 | % | 85.21 | % | 75.07 | % | ||||||
|
CAPITAL
ADEQUACY
|
||||||||||||
|
Tier
1 Capital Ratio
|
12.81 | % | 12.76 | % | 13.09 | % | ||||||
|
Total
Capital Ratio
|
14.16 | % | 14.11 | % | 14.40 | % | ||||||
|
Tangible
Capital Ratio
|
6.62 | % | 6.84 | % | 7.63 | % | ||||||
|
Leverage
Ratio
|
9.64 | % | 10.39 | % | 11.25 | % | ||||||
|
Equity
to Assets
|
9.65 | % | 9.89 | % | 11.02 | % | ||||||
|
ASSET
QUALITY
|
||||||||||||
|
Allowance
as % of Non-Performing Loans
|
38.42 | % | 40.77 | % | 34.82 | % | ||||||
|
Allowance
as a % of Loans
|
2.23 | % | 2.30 | % | 2.04 | % | ||||||
|
Net
Charge-Offs as % of Average Loans
|
2.91 | % | 2.42 | % | 1.08 | % | ||||||
|
Nonperforming
Assets as % of Loans and ORE
|
8.10 | % | 7.38 | % | 6.39 | % | ||||||
|
STOCK
PERFORMANCE
|
||||||||||||
|
High
|
$ | 14.61 | $ | 14.34 | $ | 27.31 | ||||||
|
Low
|
$ | 11.57 | $ | 11.00 | $ | 9.50 | ||||||
|
Close
|
$ | 14.25 | $ | 13.84 | $ | 11.46 | ||||||
|
Average
Daily Trading Volume
|
26,854 | 39,672 | 75,117 | |||||||||
|
CAPITAL
CITY BANK GROUP, INC.
|
||||||||||||||||||||
|
CONSOLIDATED
STATEMENT OF INCOME
|
||||||||||||||||||||
|
Unaudited
|
||||||||||||||||||||
|
(Dollars
in thousands, except per share data)
|
2010
First
Quarter
|
2009
Fourth
Quarter
|
2009
Third
Quarter
|
2009
Second
Quarter
|
2009
First
Quarter
|
|||||||||||||||
|
INTEREST
INCOME
|
||||||||||||||||||||
|
Interest
and Fees on Loans
|
$ | 26,992 | $ | 28,582 | $ | 29,463 | $ | 29,742 | $ | 29,537 | ||||||||||
|
Investment
Securities
|
990 | 1,097 | 1,323 | 1,437 | 1,513 | |||||||||||||||
|
Funds
Sold
|
172 | 77 | 1 | 1 | 3 | |||||||||||||||
|
Total
Interest Income
|
28,154 | 29,756 | 30,787 | 31,180 | 31,053 | |||||||||||||||
|
INTEREST
EXPENSE
|
||||||||||||||||||||
|
Deposits
|
2,938 | 2,964 | 2,626 | 2,500 | 2,495 | |||||||||||||||
|
Short-Term
Borrowings
|
17 | 22 | 113 | 88 | 68 | |||||||||||||||
|
Subordinated
Notes Payable
|
651 | 936 | 936 | 931 | 927 | |||||||||||||||
|
Other
Long-Term Borrowings
|
526 | 542 | 560 | 566 | 568 | |||||||||||||||
|
Total
Interest Expense
|
4,132 | 4,464 | 4,235 | 4,085 | 4,058 | |||||||||||||||
|
Net
Interest Income
|
24,022 | 25,292 | 26,552 | 27,095 | 26,995 | |||||||||||||||
|
Provision
for Loan Losses
|
10,740 | 10,834 | 12,347 | 8,426 | 8,410 | |||||||||||||||
|
Net
Interest Income after Provision for Loan Losses
|
13,282 | 14,458 | 14,205 | 18,669 | 18,585 | |||||||||||||||
|
NONINTEREST
INCOME
|
||||||||||||||||||||
|
Service
Charges on Deposit Accounts
|
6,628 | 7,183 | 7,099 | 7,162 | 6,698 | |||||||||||||||
|
Data
Processing Fees
|
900 | 948 | 914 | 896 | 870 | |||||||||||||||
|
Asset
Management Fees
|
1,020 | 1,065 | 960 | 930 | 970 | |||||||||||||||
|
Retail
Brokerage Fees
|
565 | 772 | 765 | 625 | 493 | |||||||||||||||
|
Gain
on Sale of Investment Securities
|
5 | - | 4 | 6 | - | |||||||||||||||
|
Mortgage
Banking Revenues
|
508 | 550 | 663 | 902 | 584 | |||||||||||||||
|
Merchant
Fees
|
665 | 345 | 393 | 663 | 958 | |||||||||||||||
|
Interchange
Fees
|
1,212 | 1,129 | 1,129 | 1,118 | 1,056 | |||||||||||||||
|
Gain
on Sale of Portion of Merchant Services Portfolio
|
- | - | - | - | - | |||||||||||||||
|
ATM/Debit
Card Fees
|
963 | 892 | 876 | 884 | 863 | |||||||||||||||
|
Other
|
1,501 | 1,527 | 1,501 | 1,448 | 1,550 | |||||||||||||||
|
Total
Noninterest Income
|
13,967 | 14,411 | 14,304 | 14,634 | 14,042 | |||||||||||||||
|
NONINTEREST
EXPENSE
|
||||||||||||||||||||
|
Salaries
and Associate Benefits
|
16,779 | 16,121 | 15,660 | 16,049 | 17,237 | |||||||||||||||
|
Occupancy,
Net
|
2,408 | 2,458 | 2,455 | 2,540 | 2,345 | |||||||||||||||
|
Furniture
and Equipment
|
2,181 | 2,261 | 2,193 | 2,304 | 2,338 | |||||||||||||||
|
Intangible
Amortization
|
710 | 1,010 | 1,011 | 1,010 | 1,011 | |||||||||||||||
|
Other
|
11,306 | 13,463 | 10,296 | 11,027 | 9,326 | |||||||||||||||
|
Total
Noninterest Expense
|
33,384 | 35,313 | 31,615 | 32,930 | 32,257 | |||||||||||||||
|
OPERATING
PROFIT
|
(6,135 | ) | (6,444 | ) | (3,106 | ) | 373 | 370 | ||||||||||||
|
Provision
for Income Taxes
|
(2,672 | ) | (3,037 | ) | (1,618 | ) | (401 | ) | (280 | ) | ||||||||||
|
NET
INCOME
|
$ | (3,463 | ) | $ | (3,407 | ) | $ | (1,488 | ) | $ | 774 | $ | 650 | |||||||
|
PER
SHARE DATA
|
||||||||||||||||||||
|
Basic
Earnings
|
$ | (0.20 | ) | $ | (0.20 | ) | $ | (0.08 | ) | $ | 0.04 | $ | 0.04 | |||||||
|
Diluted
Earnings
|
$ | (0.20 | ) | $ | (0.20 | ) | $ | (0.08 | ) | $ | 0.04 | $ | 0.04 | |||||||
|
Cash
Dividends
|
0.190 | 0.190 | 0.190 | 0.190 | 0.190 | |||||||||||||||
|
AVERAGE
SHARES
|
||||||||||||||||||||
|
Basic
|
17,057 | 17,034 | 17,024 | 17,010 | 17,109 | |||||||||||||||
|
Diluted
|
17,070 | 17,035 | 17,025 | 17,010 | 17,131 | |||||||||||||||
|
CAPITAL
CITY BANK GROUP, INC.
|
||||||||||||||||||||
|
CONSOLIDATED
STATEMENT OF FINANCIAL CONDITION
|
||||||||||||||||||||
|
Unaudited
|
||||||||||||||||||||
|
(Dollars
in thousands, except per share data)
|
2010
First
Quarter
|
2009
Fourth
Quarter
|
2009
Third
Quarter
|
2009
Second
Quarter
|
2009
First
Quarter
|
|||||||||||||||
|
ASSETS
|
||||||||||||||||||||
|
Cash
and Due From Banks
|
$ | 52,615 | $ | 57,877 | $ | 79,275 | $ | 92,394 | $ | 81,317 | ||||||||||
|
Funds
Sold and Interest Bearing Deposits
|
293,413 | 276,416 | 828 | 2,016 | 4,241 | |||||||||||||||
|
Total
Cash and Cash Equivalents
|
346,028 | 334,293 | 80,103 | 94,410 | 85,558 | |||||||||||||||
|
Investment
Securities, Available-for-Sale
|
217,606 | 176,673 | 183,944 | 194,002 | 195,767 | |||||||||||||||
|
Loans,
Net of Unearned Interest
|
||||||||||||||||||||
|
Commercial,
Financial, & Agricultural
|
169,766 | 189,061 | 203,813 | 201,589 | 202,038 | |||||||||||||||
|
Real
Estate - Construction
|
79,145 | 111,249 | 128,476 | 153,507 | 154,102 | |||||||||||||||
|
Real
Estate - Commercial
|
729,011 | 716,791 | 704,595 | 686,420 | 673,066 | |||||||||||||||
|
Real
Estate - Residential
|
394,132 | 406,262 | 424,715 | 447,652 | 464,358 | |||||||||||||||
|
Real
Estate - Home Equity
|
245,185 | 246,722 | 243,808 | 235,473 | 223,505 | |||||||||||||||
|
Consumer
|
224,793 | 233,524 | 241,672 | 241,467 | 243,280 | |||||||||||||||
|
Other
Loans
|
6,888 | 10,207 | 7,790 | 7,933 | 8,068 | |||||||||||||||
|
Overdrafts
|
2,701 | 2,124 | 3,163 | 3,022 | 3,195 | |||||||||||||||
|
Total
Loans, Net of Unearned Interest
|
1,851,621 | 1,915,940 | 1,958,032 | 1,977,063 | 1,971,612 | |||||||||||||||
|
Allowance
for Loan Losses
|
(41,198 | ) | (43,999 | ) | (45,401 | ) | (41,782 | ) | (40,172 | ) | ||||||||||
|
Loans,
Net
|
1,810,423 | 1,871,941 | 1,912,631 | 1,935,281 | 1,931,440 | |||||||||||||||
|
Premises
and Equipment, Net
|
117,055 | 115,439 | 111,797 | 109,050 | 107,259 | |||||||||||||||
|
Intangible
Assets
|
88,131 | 88,841 | 89,851 | 90,862 | 91,872 | |||||||||||||||
|
Other
Assets
|
135,860 | 121,137 | 113,611 | 102,234 | 87,483 | |||||||||||||||
|
Total
Other Assets
|
341,046 | 325,417 | 315,259 | 302,146 | 286,614 | |||||||||||||||
|
Total
Assets
|
$ | 2,715,103 | $ | 2,708,324 | $ | 2,491,937 | $ | 2,525,839 | $ | 2,499,379 | ||||||||||
|
LIABILITIES
|
||||||||||||||||||||
|
Deposits:
|
||||||||||||||||||||
|
Noninterest
Bearing Deposits
|
$ | 446,855 | $ | 427,791 | $ | 397,943 | $ | 424,125 | $ | 413,608 | ||||||||||
|
NOW
Accounts
|
890,570 | 899,649 | 687,679 | 733,526 | 726,069 | |||||||||||||||
|
Money
Market Accounts
|
376,091 | 373,105 | 301,662 | 300,683 | 312,541 | |||||||||||||||
|
Regular
Savings Accounts
|
130,936 | 122,370 | 122,040 | 123,257 | 121,245 | |||||||||||||||
|
Certificates
of Deposit
|
438,488 | 435,319 | 440,666 | 424,339 | 416,326 | |||||||||||||||
|
Total
Deposits
|
2,282,940 | 2,258,234 | 1,949,990 | 2,005,930 | 1,989,789 | |||||||||||||||
|
Short-Term
Borrowings
|
18,900 | 35,841 | 103,711 | 73,989 | 68,193 | |||||||||||||||
|
Subordinated
Notes Payable
|
62,887 | 62,887 | 62,887 | 62,887 | 62,887 | |||||||||||||||
|
Other
Long-Term Borrowings
|
50,679 | 49,380 | 50,665 | 52,354 | 53,448 | |||||||||||||||
|
Other
Liabilities
|
37,738 | 34,083 | 56,269 | 57,973 | 49,518 | |||||||||||||||
|
Total
Liabilities
|
2,453,144 | 2,440,425 | 2,223,522 | 2,253,133 | 2,223,835 | |||||||||||||||
|
SHAREOWNERS'
EQUITY
|
||||||||||||||||||||
|
Common
Stock
|
171 | 170 | 170 | 170 | 170 | |||||||||||||||
|
Additional
Paid-In Capital
|
36,816 | 36,099 | 36,065 | 35,698 | 35,841 | |||||||||||||||
|
Retained
Earnings
|
239,755 | 246,460 | 253,104 | 257,828 | 260,287 | |||||||||||||||
|
Accumulated
Other Comprehensive Loss, Net of Tax
|
(14,783 | ) | (14,830 | ) | (20,924 | ) | (20,990 | ) | (20,754 | ) | ||||||||||
|
Total
Shareowners' Equity
|
261,959 | 267,899 | 268,415 | 272,706 | 275,544 | |||||||||||||||
|
Total
Liabilities and Shareowners' Equity
|
$ | 2,715,103 | $ | 2,708,324 | $ | 2,491,937 | $ | 2,525,839 | $ | 2,499,379 | ||||||||||
|
OTHER
BALANCE SHEET DATA
|
||||||||||||||||||||
|
Earning
Assets
|
$ | 2,362,640 | $ | 2,369,029 | $ | 2,142,804 | $ | 2,173,081 | $ | 2,171,620 | ||||||||||
|
Intangible
Assets
|
||||||||||||||||||||
|
Goodwill
|
84,811 | 84,811 | 84,811 | 84,811 | 84,811 | |||||||||||||||
|
Deposit
Base
|
2,572 | 3,233 | 4,196 | 5,159 | 6,121 | |||||||||||||||
|
Other
|
748 | 797 | 844 | 892 | 940 | |||||||||||||||
|
Interest
Bearing Liabilities
|
1,968,551 | 1,978,551 | 1,769,310 | 1,771,035 | 1,760,709 | |||||||||||||||
|
Book
Value Per Diluted Share
|
$ | 15.34 | $ | 15.72 | $ | 15.76 | $ | 16.03 | $ | 16.18 | ||||||||||
|
Tangible
Book Value Per Diluted Share
|
10.18 | 10.51 | 10.48 | 10.70 | 10.80 | |||||||||||||||
|
Actual
Basic Shares Outstanding
|
17,063 | 17,036 | 17,032 | 17,010 | 17,010 | |||||||||||||||
|
Actual
Diluted Shares Outstanding
|
17,076 | 17,037 | 17,033 | 17,010 | 17,031 | |||||||||||||||
|
CAPITAL
CITY BANK GROUP, INC.
|
||||||||||||||||||||
|
ALLOWANCE
FOR LOAN LOSSES
|
||||||||||||||||||||
|
AND
NONPERFORMING ASSETS
|
||||||||||||||||||||
|
Unaudited
|
||||||||||||||||||||
|
2010
|
2009
|
2009
|
2009
|
2009
|
||||||||||||||||
|
(Dollars
in thousands)
|
First
Quarter
|
Fourth
Quarter
|
Third
Quarter
|
Second
Quarter
|
First
Quarter
|
|||||||||||||||
|
ALLOWANCE
FOR LOAN LOSSES
|
||||||||||||||||||||
|
Balance
at Beginning of Period
|
$ | 43,999 | $ | 45,401 | $ | 41,782 | $ | 40,172 | $ | 37,004 | ||||||||||
|
Provision
for Loan Losses
|
10,740 | 10,834 | 12,347 | 8,426 | 8,410 | |||||||||||||||
|
Transfer
of Unfunded Reserve to Other Liability
|
5 | 392 | - | - | - | |||||||||||||||
|
Net
Charge-Offs
|
13,536 | 11,844 | 8,728 | 6,816 | 5,242 | |||||||||||||||
|
Balance
at End of Period
|
$ | 41,198 | $ | 43,999 | $ | 45,401 | $ | 41,781 | $ | 40,172 | ||||||||||
|
As
a % of Loans
|
2.23 | % | 2.30 | % | 2.32 | % | 2.12 | % | 2.04 | % | ||||||||||
|
As
a % of Nonperforming Loans
|
38.42 | % | 40.77 | % | 40.90 | % | 33.71 | % | 34.82 | % | ||||||||||
|
As
a % of Nonperforming Assets
|
26.81 | % | 30.54 | % | 31.45 | % | 29.09 | % | 31.69 | % | ||||||||||
|
CHARGE-OFFS
|
||||||||||||||||||||
|
Commercial,
Financial and Agricultural
|
$ | 842 | $ | 712 | $ | 633 | $ | 388 | $ | 857 | ||||||||||
|
Real
Estate - Construction
|
3,722 | 2,040 | 2,315 | 3,356 | 320 | |||||||||||||||
|
Real
Estate - Commercial
|
4,631 | 1,584 | 1,707 | 123 | 1,002 | |||||||||||||||
|
Real
Estate - Residential
|
3,727 | 7,377 | 3,394 | 2,379 | 1,975 | |||||||||||||||
|
Consumer
|
1,507 | 1,324 | 1,324 | 1,145 | 2,117 | |||||||||||||||
|
Total
Charge-Offs
|
$ | 14,429 | $ | 13,037 | $ | 9,373 | $ | 7,391 | $ | 6,271 | ||||||||||
|
RECOVERIES
|
||||||||||||||||||||
|
Commercial,
Financial and Agricultural
|
$ | 77 | $ | 343 | $ | 64 | $ | 84 | $ | 74 | ||||||||||
|
Real
Estate - Construction
|
- | 5 | 150 | - | 385 | |||||||||||||||
|
Real
Estate - Commercial
|
157 | 43 | 8 | 1 | - | |||||||||||||||
|
Real
Estate - Residential
|
114 | 331 | 92 | 51 | 58 | |||||||||||||||
|
Consumer
|
545 | 471 | 331 | 439 | 512 | |||||||||||||||
|
Total
Recoveries
|
$ | 893 | $ | 1,193 | $ | 645 | $ | 575 | $ | 1,029 | ||||||||||
|
NET
CHARGE-OFFS
|
$ | 13,536 | $ | 11,844 | $ | 8,728 | $ | 6,816 | $ | 5,242 | ||||||||||
|
Net
Charge-Offs as a % of Average Loans(1)
|
2.91 | % | 2.42 | % | 1.76 | % | 1.39 | % | 1.08 | % | ||||||||||
|
RISK
ELEMENT ASSETS
|
||||||||||||||||||||
|
Nonaccruing
Loans
|
$ | 76,382 | $ | 86,274 | $ | 91,880 | $ | 111,039 | $ | 110,200 | ||||||||||
|
Restructured
Loans
|
30,843 | 21,644 | 19,121 | 12,916 | 5,157 | |||||||||||||||
|
Total
Nonperforming Loans
|
107,225 | 107,918 | 111,001 | 123,955 | 115,357 | |||||||||||||||
|
Other
Real Estate
|
46,444 | 36,134 | 33,371 | 19,671 | 11,425 | |||||||||||||||
|
Total
Nonperforming Assets
|
$ | 153,669 | $ | 144,052 | $ | 144,372 | $ | 143,626 | $ | 126,783 | ||||||||||
|
Past
Due Loans 90 Days or More
|
$ | - | $ | - | $ | 486 | $ | - | $ | - | ||||||||||
|
Nonperforming
Loans as a % of Loans
|
5.79 | % | 5.63 | % | 5.67 | % | 6.27 | % | 5.85 | % | ||||||||||
|
Nonperforming
Assets as a % of
|
||||||||||||||||||||
|
Loans
and Other Real Estate
|
8.10 | % | 7.38 | % | 7.25 | % | 7.19 | % | 6.39 | % | ||||||||||
|
Nonperforming
Assets as a % of Capital(2)
|
50.69 | % | 46.19 | % | 46.01 | % | 45.67 | % | 40.16 | % | ||||||||||
|
(1)
Annualized
|
||||||||||||||||||||
|
(2)
Capital includes allowance for loan losses.
|
||||||||||||||||||||
|
AVERAGE
BALANCE AND INTEREST RATES(1)
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
Unaudited
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
First
Quarter 2010
|
Fourth
Quarter 2009
|
Third
Quarter 2009
|
Second
Quarter 2009
|
First
Quarter 2009
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
(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
|
|||||||||||||||||||||||||||||||||||||||||||||
|
ASSETS:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
Loans,
Net of Unearned Interest
|
$ | 1,886,367 | 27,180 | 5.84 | % | $ | 1,944,873 | 28,813 | 5.88 | % | $ | 1,964,984 | 29,695 | 6.00 | % | $ | 1,974,197 | 29,954 | 6.09 | % | $ | 1,964,086 | 29,724 | 6.14 | % | |||||||||||||||||||||||||||||||||||
|
Investment
Securities
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
Taxable
Investment Securities
|
71,325 | 500 | 2.81 | % | 72,537 | 498 | 2.74 | % | 81,777 | 682 | 3.32 | % | 89,574 | 742 | 3.31 | % | 90,927 | 776 | 3.43 | % | ||||||||||||||||||||||||||||||||||||||||
|
Tax-Exempt
Investment Securities
|
97,316 | 753 | 3.10 | % | 107,361 | 921 | 3.43 | % | 107,307 | 985 | 3.67 | % | 106,869 | 1,067 | 4.00 | % | 101,108 | 1,133 | 4.48 | % | ||||||||||||||||||||||||||||||||||||||||
|
Total
Investment Securities
|
168,641 | 1,253 | 2.98 | % | 179,898 | 1,419 | 3.15 | % | 189,084 | 1,667 | 3.52 | % | 196,443 | 1,809 | 3.68 | % | 192,035 | 1,909 | 3.98 | % | ||||||||||||||||||||||||||||||||||||||||
|
Funds
Sold
|
303,280 | 172 | 0.23 | % | 112,790 | 77 | 0.27 | % | 3,294 | 1 | 0.11 | % | 4,641 | 1 | 0.10 | % | 10,116 | 3 | 0.13 | % | ||||||||||||||||||||||||||||||||||||||||
|
Total
Earning Assets
|
2,358,288 | $ | 28,605 | 4.92 | % | 2,237,561 | $ | 30,309 | 5.38 | % | 2,157,362 | $ | 31,363 | 5.77 | % | 2,175,281 | $ | 31,764 | 5.86 | % | 2,166,237 | $ | 31,636 | 5.92 | % | |||||||||||||||||||||||||||||||||||
|
Cash
and Due From Banks
|
54,873 | 69,687 | 76,622 | 81,368 | 76,826 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
Allowance
for Loan Losses
|
(44,584 | ) | (46,468 | ) | (42,774 | ) | (41,978 | ) | (38,007 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||
|
Other
Assets
|
329,842 | 314,470 | 306,759 | 291,681 | 281,869 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
Total
Assets
|
$ | 2,698,419 | $ | 2,575,250 | $ | 2,497,969 | $ | 2,506,352 | $ | 2,486,925 | ||||||||||||||||||||||||||||||||||||||||||||||||||
|
LIABILITIES:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
Interest
Bearing Deposits
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
NOW
Accounts
|
$ | 867,004 | $ | 384 | 0.18 | % | $ | 740,550 | $ | 308 | 0.17 | % | $ | 678,292 | $ | 257 | 0.15 | % | $ | 709,039 | $ | 249 | 0.14 | % | $ | 719,265 | $ | 225 | 0.13 | % | ||||||||||||||||||||||||||||||
|
Money
Market Accounts
|
374,161 | 689 | 0.75 | % | 361,104 | 625 | 0.69 | % | 301,230 | 281 | 0.37 | % | 298,007 | 192 | 0.26 | % | 321,562 | 190 | 0.24 | % | ||||||||||||||||||||||||||||||||||||||||
|
Savings
Accounts
|
126,352 | 15 | 0.05 | % | 122,158 | 16 | 0.05 | % | 122,934 | 15 | 0.05 | % | 123,034 | 15 | 0.05 | % | 118,142 | 14 | 0.05 | % | ||||||||||||||||||||||||||||||||||||||||
|
Time
Deposits
|
438,112 | 1,850 | 1.71 | % | 439,654 | 2,015 | 1.82 | % | 430,944 | 2,073 | 1.91 | % | 417,545 | 2,044 | 1.96 | % | 392,006 | 2,066 | 2.14 | % | ||||||||||||||||||||||||||||||||||||||||
|
Total
Interest Bearing Deposits
|
1,805,629 | 2,938 | 0.66 | % | 1,663,466 | 2,964 | 0.71 | % | 1,533,400 | 2,626 | 0.68 | % | 1,547,625 | 2,500 | 0.65 | % | 1,550,975 | 2,495 | 0.65 | % | ||||||||||||||||||||||||||||||||||||||||
|
Short-Term
Borrowings
|
30,673 | 17 | 0.22 | % | 47,114 | 22 | 0.18 | % | 97,305 | 113 | 0.45 | % | 87,768 | 88 | 0.40 | % | 85,318 | 68 | 0.32 | % | ||||||||||||||||||||||||||||||||||||||||
|
Subordinated
Notes Payable
|
62,887 | 651 | 4.14 | % | 62,887 | 936 | 5.83 | % | 62,887 | 936 | 5.83 | % | 62,887 | 931 | 5.86 | % | 62,887 | 927 | 5.89 | % | ||||||||||||||||||||||||||||||||||||||||
|
Other
Long-Term Borrowings
|
49,981 | 526 | 4.27 | % | 50,026 | 542 | 4.30 | % | 51,906 | 560 | 4.28 | % | 52,775 | 566 | 4.30 | % | 53,221 | 568 | 4.33 | % | ||||||||||||||||||||||||||||||||||||||||
|
Total
Interest Bearing Liabilities
|
1,949,170 | $ | 4,132 | 0.86 | % | 1,823,493 | $ | 4,464 | 0.97 | % | 1,745,498 | $ | 4,235 | 0.96 | % | 1,751,055 | $ | 4,085 | 0.94 | % | 1,752,401 | $ | 4,058 | 0.94 | % | |||||||||||||||||||||||||||||||||||
|
Noninterest
Bearing Deposits
|
443,131 | 426,542 | 416,770 | 423,566 | 406,380 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
Other
Liabilities
|
37,563 | 56,659 | 60,674 | 54,617 | 46,510 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
Total
Liabilities
|
2,429,864 | 2,306,694 | 2,222,942 | 2,229,238 | 2,205,291 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
SHAREOWNERS'
EQUITY:
|
$ | 268,555 | $ | 268,556 | $ | 275,027 | $ | 277,114 | $ | 281,634 | ||||||||||||||||||||||||||||||||||||||||||||||||||
|
Total
Liabilities and Shareowners' Equity
|
$ | 2,698,419 | $ | 2,575,250 | $ | 2,497,969 | $ | 2,506,352 | $ | 2,486,925 | ||||||||||||||||||||||||||||||||||||||||||||||||||
|
Interest
Rate Spread
|
$ | 24,473 | 4.06 | % | $ | 25,845 | 4.41 | % | $ | 27,128 | 4.81 | % | $ | 27,679 | 4.92 | % | $ | 27,578 | 4.98 | % | ||||||||||||||||||||||||||||||||||||||||
|
Interest
Income and Rate Earned(1)
|
$ | 28,605 | 4.92 | % | $ | 30,309 | 5.38 | % | $ | 31,363 | 5.77 | % | $ | 31,764 | 5.86 | % | $ | 31,636 | 5.92 | % | ||||||||||||||||||||||||||||||||||||||||
|
Interest
Expense and Rate Paid(2)
|
4,132 | 0.71 | % | 4,464 | 0.79 | % | 4,235 | 0.78 | % | 4,085 | 0.75 | % | 4,058 | 0.76 | % | |||||||||||||||||||||||||||||||||||||||||||||
|
Net
Interest Margin
|
$ | 24,473 | 4.21 | % | $ | 25,845 | 4.59 | % | $ | 27,128 | 4.99 | % | $ | 27,679 | 5.11 | % | $ | 27,578 | 5.16 | % | ||||||||||||||||||||||||||||||||||||||||