Press Release


Capital City Bank Group, Inc. Reports Second Quarter 2016 Results

Company Release - 7/26/2016 7:00 AM ET

TALLAHASSEE, Fla., July 26, 2016 (GLOBE NEWSWIRE) -- Capital City Bank Group, Inc. (Nasdaq:CCBG) today reported net income of $3.9 million, or $0.22 per diluted share for the second quarter of 2016 compared to net income of $1.6 million, or $0.10 per diluted share for the first quarter of 2016, and $3.8 million, or $0.22 per diluted share, for the second quarter of 2015.  For the first six months of 2016, net income totaled $5.6 million, or $0.32 per diluted share, compared to net income of $4.8 million, or $0.28 per diluted share for the same period in 2015.       

HIGHLIGHTS

  • Continued broad based loan growth of 1.6% sequentially and 4.0% over prior year
  • Continued growth in net interest income of 0.9% sequentially and 2.9% year to date
  • Significant reduction in loan loss provision reflective of strong loan recoveries
  • Strong reduction in NPAs and classified assets – down sequentially by 14% and 11%, respectively
  • $10 million trust preferred securities (“TRUPs”) repurchased at a discount added $2.5 million pre-tax ($0.09 per share) to 2nd quarter earnings
  • Repurchased 432,000 shares of common stock during second quarter of 2016

“Our second quarter performance continued to show meaningful progress year over year,” said William G. Smith, Jr., Chairman, President and CEO.  “A significant reduction in nonperforming assets, high level of loan loss recoveries and gain on the repurchase of $10 million in TRUPs all helped to headline the quarter.  Despite a challenging environment, our strategies continue to produce positive results.  Average loans grew at an annual pace of over 6%, and we remain dedicated to reducing our structural expenses and enhancing existing revenues while identifying new business opportunities.  If done properly and prudently, it can take time for these strategies to produce the desired outcome, but we are making progress and remain steadfast in our decision to value long-term profitability over short-term gains.”

Compared to the first quarter of 2016, performance reflects higher net interest income of $0.2 million, a $2.5 million increase in noninterest income, lower noninterest expense of $0.2 million, and a $0.6 million reduction in the loan loss provision, partially offset by a $1.2 million increase in income taxes.

Compared to the second quarter of 2015, the increase in earnings reflects higher net interest income of $0.4 million, a $0.4 million increase in noninterest income, and a $0.5 million reduction in the loan loss provision, partially offset by a $0.3 million increase in noninterest expense and $0.9 million increase in income taxes.

The increase in earnings for the first six months of 2016 versus the comparable period in 2015 was attributable to higher net interest income of $1.1 million, a $0.3 million increase in noninterest income, lower noninterest expense of $0.2 million, and a $0.3 million reduction in the loan loss provision, partially offset by higher income taxes of $1.1 million.

The Return on Average Assets was 0.57% and the Return on Average Equity was 5.65% for the second quarter of 2016.  These metrics were 0.24% and 2.39% for the first quarter of 2016, respectively, and 0.58% and 5.62% for the second quarter of 2015, respectively.  For the first six months of 2016, the Return on Average Assets was 0.41% and the Return on Average Equity was 4.03% compared to 0.37% and 3.54%, respectively, for the first half of 2015.

Discussion of Operating Results

Tax equivalent net interest income for the second quarter of 2016 was $19.6 million compared to $19.4 million for the first quarter of 2016 and $19.1 million for the second quarter of 2015.  The increase in tax equivalent net interest income compared to the first quarter of 2016 reflects a positive shift in earning asset mix due to growth in the loan and investment portfolios, partially offset by a decline in overnight funds.  The increase in tax equivalent net interest income compared to the second quarter of 2015 reflects growth in the investment portfolio and a higher rate paid on overnight funds, partially offset by a decline in loan fees.  For the six months ended June 30, 2016, tax equivalent net interest income totaled $39.0 million compared to $37.7 million for the comparable period in 2015.  The year over year increase was driven by one additional calendar day, and growth in the loan and investment portfolios.

Although the low interest rate environment continues to put downward pressure on our net interest income, we have been successful in increasing our net interest income quarter-over-quarter.  Additionally, aggressive lending competition in all markets has impacted the pricing for loans. Low rates and competition, collectively, continue to adversely impact our loan yields.  Various loan strategies, which align with our overall risk appetite, continue to be reviewed and implemented to enhance our performance.

Our net interest margin for the second quarter of 2016 was 3.22%, an increase of two basis points over the first quarter of 2016 and a decrease of seven basis points from the second quarter of 2015.  The increase in the margin compared to the first quarter of 2016 was primarily attributable to growth in our loan and investment portfolios.  The decrease in the margin compared to the second quarter of 2015 was primarily attributable to lower loan yields.  For the six months ended June 30, 2016, the net interest margin declined by seven basis points to 3.21% compared to the same period of 2015 for reasons mentioned above. 

The provision for loan losses for the second quarter of 2016 was negative $0.1 million reflecting a higher level of loan recoveries as well as continued improvement in credit quality.  This compares to a $0.5 million provision expense for the first quarter of 2016 and $0.4 million provision expense for the second quarter of 2015.  For the first half of 2016, the loan loss provision totaled $0.4 million compared to $0.7 million for the same period of 2015.  The decrease in the year-to-date provision reflects continued favorable problem loan migration and improvement in key credit metrics, partially offset by growth in the loan portfolio.  We realized net loan recoveries of $0.2 million (consisting of recoveries of $1.3 million, less gross charge-offs of $1.1 million) for the second quarter of 2016.  This compares to net charge-offs of $0.8 million, or 0.21% (annualized) of average loans for the first quarter of 2016 and $1.2 million, or 0.33% (annualized), for the second quarter of 2015.  For the first half of 2016, net charge-offs totaled $0.6 million, or 0.08% (annualized) of average loans compared to $3.0 million, or 0.41% (annualized), for the same period of 2015.  At quarter-end, the allowance for loan losses of $13.7 million was 0.89% of outstanding loans (net of overdrafts) and provided coverage of 167% of nonperforming loans compared to 0.90% and 150%, respectively, at March 31, 2016 and 0.93% and 135%, respectively, at December 31, 2015.

Noninterest income for the second quarter of 2016 totaled $15.2 million, an increase of $2.5 million, or 20.0%, over the first quarter of 2016 attributable to a $2.5 million gain from the repurchase of our TRUPs.  This transaction is further detailed in our Current Report on Form 8-K filed with the SEC on April 18, 2016.  Compared to the second quarter of 2015, noninterest income increased $0.4 million, or 2.8%, primarily attributable to higher other income of $0.8 million that was partially offset by lower deposit fees of $0.4 million.  The increase in other income reflects the $2.5 million gain from the repurchase of TRUPs partially offset by lower bank owned life insurance (“BOLI”) income of $1.7 million.  For the first half of 2016, noninterest income totaled $27.9 million, a $0.3 million, or 0.9%, increase over the same period of 2015, primarily attributable to higher other income of $0.9 million and mortgage banking fees of $0.1 million, partially offset by lower deposit fees of $0.5 million and wealth management fees of $0.3 million.  The variance in other income was attributable to the same factors noted above for the second quarter.  Continued strong residential home sales activity in our markets drove the improvement in mortgage banking fees.  The reduction in deposit fees reflects lower overdraft service fees attributable to a reduction in accounts using this service as well as lower utilization by existing users.  The reduction in wealth management fees generally reflects lower trading volume by our retail brokerage clients.

Noninterest expense for the second quarter of 2016 totaled $28.7 million, a decrease of $0.2 million, or 0.8%, from the first quarter of 2016 primarily attributable to lower other real estate owned (“OREO”) expense of $0.4 million reflective of lower property valuation adjustments and carrying costs. Compared to the second quarter of 2015, noninterest expense increased by $0.3 million, or 0.9%, due to higher occupancy costs, primarily attributable to higher maintenance costs for building and furniture/equipment and to a lesser extent higher depreciation expense from technology investments in our banking offices.  For the first six months of 2016, noninterest expense totaled $57.6 million, a decrease of $0.2 million, or 0.3%, from the same period of 2015 attributable to lower compensation expense of $0.6 million that was partially offset by higher occupancy expense of $0.4 million.  A higher level of deferred loan cost (which reduces salary expense), partially offset by higher pension plan expense drove the reduction in compensation.  The variance in occupancy expense was attributable to the same aforementioned factors noted above for the second quarter.

We realized income tax expense of $2.1 million (34% effective rate) for the second quarter of 2016 compared to $0.9 million (34% effective rate) for the first quarter of 2016 and $1.2 million (23% effective rate) for the second quarter of 2015.  For the first six months of 2016, income tax expense totaled $2.9 million (34% effective rate) compared to $1.8 million (27% effective rate) for the comparable period of 2015.  The receipt of $1.7 million in BOLI proceeds in the second quarter of 2015 was tax-free, therefore income tax expense for the three and six-months of 2015 was favorably impacted.

Discussion of Financial Condition

Average earning assets were $2.448 billion for the second quarter of 2016, an increase of $7.1 million, or 0.3%, over the first quarter of 2016, and an increase of $94.0 million, or 4.0%, over the fourth quarter of 2015.  The change in earning assets over the first quarter of 2016 reflects growth in both the loan and investment portfolios, which was funded by a reduction in our funds sold position and growth in nonmaturity deposits, primarily noninterest bearing.  The increase compared to the fourth quarter of 2015 reflects growth in the loan and investment portfolios, funded primarily by increases in noninterest bearing, NOW, and savings accounts. 

We maintained an average net overnight funds (deposits with banks plus fed funds sold less fed funds purchased) sold position of $254.6 million during the second quarter of 2016 compared to an average net overnight funds sold position of $286.2 million in the first quarter of 2016 and $222.8 million in the fourth quarter of 2015. The decrease in net overnight funds compared to the first quarter of 2016 reflects an increase in both the investment and loan portfolios. The decline in interest bearing liabilities was nearly offset by the increase in noninterest bearing deposits. The increase in net overnight funds compared to the fourth quarter of 2015 primarily reflects higher levels of all deposit products other than money market accounts and certificates of deposit, partially offset by growth in both the investment and loan portfolios.

Average loans increased $24.3 million, or 1.6% when compared to the first quarter of 2016, and have grown $39.3 million, or 2.6% when compared to the fourth quarter of 2015. The increase compared to the prior quarter reflects growth primarily in institutional, commercial, and consumer loans. Growth over the fourth quarter of 2015 was experienced in all loan products, with the exception of commercial mortgages. 

Without compromising our credit standards or taking on inordinate interest rate risk, we continue to make minor modifications on some of our lending programs to try to mitigate the impact that consumer and business deleveraging is having on our portfolio.  These programs, coupled with economic improvements in our anchor markets, have helped to increase overall production. Nonperforming assets (nonaccrual loans and OREO) totaled $22.8 million at the end of the second quarter of 2016, a decrease of $3.7 million, or 14%, from the first quarter of 2016 and $6.8 million, or 23%, from the fourth quarter of 2015.  Nonaccrual loans totaled $8.2 million at the end of the second quarter of 2016, a decrease of $0.9 million from the first quarter of 2016 and $2.1 million from the fourth quarter of 2015.  Nonaccrual loan additions totaled $2.5 million in the second quarter of 2016 and $6.3 million for the first six months of 2016, which compares to $10.3 million for the same six month period of 2015.  The balance of OREO totaled $14.6 million at the end of the second quarter of 2016, a decrease of $2.8 million and $4.7 million, respectively, from the first quarter of 2016 and fourth quarter of 2015.  For the second quarter of 2016, we added properties totaling $1.2 million, sold properties totaling $3.3 million, and recorded valuation adjustments totaling $0.7 million.  For the first six months of 2016, we added properties totaling $2.4 million, sold properties totaling $5.6 million, and recorded valuation adjustments totaling $1.5 million.  Nonperforming assets represented 0.83% of total assets at June 30, 2016 compared to 0.95% at March 31, 2016 and 1.06% at December 31, 2015.

Average total deposits were $2.277 billion for the second quarter of 2016, an increase of $18.0 million, or 0.8%, over the first quarter of 2016, and an increase of $101.8 million, or 4.7% over the fourth quarter of 2015. The increase in deposits when compared to the first quarter of 2016 reflects growth in all deposit products except public NOW deposits and certificates of deposit.  Compared to the fourth quarter of 2015, growth was experienced in all product types except money market accounts and certificates of deposit.  The seasonal inflows of public funds most likely peaked in the first quarter of 2016, and are expected to decline into the fourth quarter of 2016.

Deposit levels remain strong, as the seasonal decline in public NOW accounts was more than offset by increases in all other nonmaturity deposits during the quarter.  Average core deposits continue to experience growth in this low rate environment.  Competitive rates continue to be monitored, as a prudent pricing discipline remains the key to managing our mix of deposits.

Compared to the first quarter of 2016, average borrowings decreased $22.9 million due to a decline in repurchase agreements and the retirement of $10 million in subordinated debt associated with the TRUPs repurchase.  Compared to the fourth quarter of 2015, average borrowings decreased by $24.9 million due to the reasons stated above.

Equity capital was $274.8 million as of June 30, 2016, compared to $276.8 million as of March 31, 2016 and $274.4 million as of December 31, 2015.  Our leverage ratio was 9.88%, 10.34%, and 10.65%, respectively, for these periods.  Further, as of June 30, 2016, our risk-adjusted capital ratio was 16.44% compared to 17.20% and 17.25% at March 31, 2016 and December 31, 2015, respectively.  Our common equity tier 1 ratio was 12.65% as of June 30, 2016, compared to 12.82% as of March 31, 2016 and 12.84% as of December 31, 2015.  All of our capital ratios significantly exceed the threshold to be designated as “well-capitalized” under the Basel III capital standards.  The reduction in our regulatory capital ratios in the second quarter of 2016 reflects the repurchase of common stock (~ 38 basis point impact) and the repurchase of TRUPs (~ 50 basis point impact).  During the second quarter of 2016 we repurchased approximately 432,000 shares of our common stock at an average price of $14.50 per share.

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 $2.8 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, data processing and securities brokerage services.  Our bank subsidiary, Capital City Bank, was founded in 1895 and now has 61 banking offices and 71 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 accuracy of the Company’s 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 the Company’s computer systems or fraud related to debit card products; changes in consumer spending and savings habits; the Company’s growth and profitability; the strength of the U.S. economy and the local economies where the Company conducts operations; the effects of the Company’s lack of a 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 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, 2015, 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.

CAPITAL CITY BANK GROUP, INC. 
EARNINGS HIGHLIGHTS 
Unaudited          
           
   Three Months Ended
 Six Months Ended
(Dollars in thousands, except per share data) Jun 30, 2016 Mar 31, 2016 Jun 30, 2015 Jun 30, 2016 Jun 30, 2015
           
EARNINGS          
Net Income$ 3,930 $ 1,647 $ 3,845 $ 5,577 $ 4,831 
Net Income Per Common Share$   0.22 $   0.10 $   0.22 $   0.32 $   0.28 
PERFORMANCE          
Return on Average Assets  0.57%  0.24%  0.58%  0.41%  0.37%
Return on Average Equity  5.65%  2.39%  5.62%  4.03%  3.54%
Net Interest Margin  3.22%  3.20%  3.29%  3.21%  3.28%
Noninterest Income as % of Operating Revenue 43.99%  39.76%  43.80%  41.96%  42.44%
Efficiency Ratio  82.40%  90.13%  83.85%  86.11%  88.46%
CAPITAL ADEQUACY          
Tier 1 Capital Ratio  15.63%  16.39%  15.83%  15.63%  15.83%
Total Capital Ratio  16.44%  17.20%  16.72%  16.44%  16.72%
Tangible Common Equity Ratio  7.08%  7.09%  7.29%  7.08%  7.29%
Leverage Ratio  9.88%  10.34%  10.53%  9.88%  10.53%
Common Equity Tier 1 Ratio  12.65%  12.82%  12.34%  12.65%  12.34%
Equity to Assets  9.93%  9.91%  10.25%  9.93%  10.25%
ASSET QUALITY          
Allowance as % of Non-Performing Loans  166.50%  150.44%  99.46%  166.50%  99.46%
Allowance as a % of Loans  0.89%  0.90%  1.03%  0.89%  1.03%
Net Charge-Offs as % of Average Loans  (0.04)%  0.21%  0.33%  0.08%  0.41%
Nonperforming Assets as % of Loans and ORE  1.48%  1.73%  3.00%  1.48%  3.00%
Nonperforming Assets as % of Total Assets  0.83%  0.95%  1.71%  0.83%  1.71%
STOCK PERFORMANCE          
High $ 15.96 $ 15.88 $ 16.32 $ 15.96 $ 16.33 
Low  13.16   12.83   13.94   12.83   13.16 
Close  13.92   14.59   15.27   13.92   15.27 
Average Daily Trading Volume$ 20,192 $ 22,720 $ 33,514 $ 21,426 $ 24,435 
           

 

CAPITAL CITY BANK GROUP, INC.  
CONSOLIDATED STATEMENT OF FINANCIAL CONDITION
 
Unaudited           
            
            
   2016   2015  
(Dollars in thousands) Second Quarter First Quarter Fourth Quarter Third Quarter Second Quarter 
ASSETS           
Cash and Due From Banks$   51,766  $    45,914  $    51,288  $    42,917  $    61,484  
Funds Sold and Interest Bearing Deposits    220,719     304,908     327,617     167,787     185,572  
Total Cash and Cash Equivalents    272,485     350,822     378,905     210,704     247,056  
            
Investment Securities Available for Sale    485,848     462,444     451,028     444,071     433,688  
Investment Securities Held to Maturity    204,474     187,079     187,892     193,964     201,805  
Total Investment Securities    690,322     649,523     638,920     638,035     635,493  
            
Loans Held for Sale    12,046     10,475     11,632     10,960     10,991  
            
Loans, Net of Unearned Interest           
Commercial, Financial, & Agricultural    207,105     183,681     179,816     169,588     151,116  
Real Estate - Construction    46,930     42,538     46,484     49,475     44,216  
Real Estate - Commercial    485,329     503,259     499,813     491,734     510,962  
Real Estate - Residential    280,015     285,772     285,748     280,690     284,333  
Real Estate - Home Equity    235,394     234,128     233,901     232,254     230,388  
Consumer    252,347     245,197     240,434     238,884     238,599  
Other Loans    11,177     10,297     4,837     10,094     12,048  
Overdrafts    2,177     1,963     1,242     2,464     2,603  
Total Loans, Net of Unearned Interest    1,520,474     1,506,835     1,492,275     1,475,183     1,474,265  
Allowance for Loan Losses    (13,677)    (13,613)    (13,953)    (14,737)    (15,236) 
Loans, Net    1,506,797     1,493,222     1,478,322     1,460,446     1,459,029  
            
Premises and Equipment, Net    97,313     98,029     98,819     98,218     99,108  
Goodwill    84,811     84,811     84,811     84,811     84,811  
Other Real Estate Owned    14,622     17,450     19,290     25,219     30,167  
Other Assets    89,240     87,854     87,161     86,701     87,489  
Total Other Assets    285,986     288,144     290,081     294,949     301,575  
            
Total Assets$   2,767,636  $    2,792,186  $    2,797,860  $    2,615,094  $    2,654,144  
            
LIABILITIES           
Deposits:           
Noninterest Bearing Deposits$   798,219  $    790,040  $    758,283  $    720,824  $    723,866  
NOW Accounts    804,263     786,432     848,330     688,491     734,237  
Money Market Accounts    259,813     254,682     248,367     261,050     264,475  
Regular Savings Accounts    294,432     286,807     269,162     262,843     255,185  
Certificates of Deposit    168,079     173,447     178,707     181,775     186,881  
Total Deposits    2,324,806     2,291,408     2,302,849     2,114,983     2,164,644  
            
Short-Term Borrowings    9,609     62,922     61,058     65,355     53,698  
Subordinated Notes Payable    52,887     62,887     62,887     62,887     62,887  
Other Long-Term Borrowings    26,401     27,062     28,265     29,042     29,733  
Other Liabilities    79,109     71,074     68,449     69,168     71,144  
            
Total Liabilities    2,492,812     2,515,353     2,523,508     2,341,435     2,382,106  
            
SHAREOWNERS' EQUITY           
Common Stock    168     172     172     171     172  
Additional Paid-In Capital    32,855     38,671     38,256     37,738     37,625  
Retained Earnings    262,380     259,139     258,181     256,265     255,096  
Accumulated Other Comprehensive Loss, Net of Tax    (20,579)    (21,149)    (22,257)    (20,515)    (20,855) 
            
Total Shareowners' Equity    274,824     276,833     274,352     273,659     272,038  
            
Total Liabilities and Shareowners' Equity$   2,767,636  $    2,792,186  $    2,797,860  $    2,615,094  $    2,654,144  
            
OTHER BALANCE SHEET DATA           
Earning Assets$   2,443,561  $    2,471,741  $    2,470,445  $    2,291,966  $    2,306,322  
Interest Bearing Liabilities    1,615,484     1,654,239     1,696,776     1,551,443     1,587,096  
            
Book Value Per Diluted Share$ 16.31 $ 16.04 $ 15.93 $ 15.91 $ 15.80  
Tangible Book Value Per Diluted Share  11.27   11.13   11.00   10.98   10.87  
            
Actual Basic Shares Outstanding  16,804   17,222   17,157   17,144   17,154  
Actual Diluted Shares Outstanding  16,855   17,254   17,226   17,223   17,216  
            

 

CAPITAL CITY BANK GROUP, INC.  
CONSOLIDATED STATEMENT OF OPERATIONS  
Unaudited               
                
            Six Months Ended 
  2016 2015 June 30, 
(Dollars in thousands, except per share data) Second Quarter First Quarter Fourth Quarter Third Quarter Second Quarter 2016 2015 
                
INTEREST INCOME               
Interest and Fees on Loans$ 18,105 $18,045$18,861$18,214$18,231$36,150$36,094 
Investment Securities  1,751  1,637 1,572 1,540 1,451 3,388 2,745 
Funds Sold  318  362 169 123 151 680 340 
Total Interest Income  20,174  20,044 20,602 19,877 19,833 40,218 39,179 
                
INTEREST EXPENSE               
Deposits  211  221 219 220 259 432 505 
Short-Term Borrowings  38  10 9 14 15 48 36 
Subordinated Notes Payable  343  387 354 344 338 730 670 
Other Long-Term Borrowings  206  216 226 233 237 422 477 
Total Interest Expense  798  834 808 811 849 1,632 1,688 
Net Interest Income  19,376  19,210 19,794 19,066 18,984 38,586 37,491 
Provision for Loan Losses  (97) 452 513 413 375 355 668 
Net Interest Income after Provision for Loan Losses 19,473  18,758 19,281 18,653 18,609 38,231 36,823 
                
NONINTEREST INCOME               
Deposit Fees  5,321  5,400 5,664 5,721 5,682 10,721 11,223 
Bank Card Fees  2,855  2,853 2,866 2,826 2,844 5,708 5,586 
Wealth Management Fees  1,690  1,792 1,893 1,818 1,776 3,482 3,822 
Mortgage Banking Fees  1,267  1,030 1,043 1,306 1,203 2,297 2,190 
Data Processing Fees  335  347 335 400 364 682 737 
Other   3,747  1,255 1,420 1,157 2,925 5,002 4,084 
Total Noninterest Income  15,215  12,677 13,221 13,228 14,794 27,892 27,642 
                
NONINTEREST EXPENSE               
Compensation  16,051  16,241 15,833 16,653 16,404 32,292 32,928 
Occupancy, Net  4,584  4,459 4,638 4,446 4,258 9,043 8,654 
Other Real Estate  1,060  1,425 1,241 1,302 931 2,485 2,428 
Other   7,007  6,805 6,568 6,763 6,846 13,812 13,819 
Total Noninterest Expense  28,702  28,930 28,280 29,164 28,439 57,632 57,829 
                
OPERATING PROFIT  5,986  2,505 4,222 2,717 4,964 8,491 6,636 
Income Tax Expense  2,056  858 1,620 1,034 1,119 2,914 1,805 
NET INCOME$ 3,930 $1,647$2,602$1,683$3,845$5,577$4,831 
                
PER SHARE DATA               
Basic Income$ 0.22 $0.10$0.16$0.09$0.22$0.32$0.28 
Diluted Income$ 0.22 $0.10$0.16$0.09$0.22$0.32$0.28 
Cash Dividend $ 0.04 $0.04$0.04$0.03$0.03$0.08$0.06 
AVERAGE SHARES               
Basic   17,144  17,202 17,145 17,150 17,296 17,173 17,402 
Diluted   17,196  17,235 17,214 17,229 17,358 17,215 17,456 
                

 

CAPITAL CITY BANK GROUP, INC. 
ALLOWANCE FOR LOAN LOSSES  
AND RISK ELEMENT ASSETS 
Unaudited              
               
            Six Months Ended
   2016   2016   2015   2015   2015  June 30,
(Dollars in thousands, except per share data) Second Quarter First Quarter Fourth Quarter Third Quarter Second Quarter  2016   2015 
               
ALLOWANCE FOR LOAN LOSSES              
Balance at Beginning of Period$ 13,613 $ 13,953 $ 14,737 $ 15,236 $ 16,090 $ 13,953 $ 17,539 
Provision for Loan Losses  (97)  452   513   413   375   355   668 
Net Charge-Offs  (161)  792   1,297   912   1,229   631   2,971 
Balance at End of Period$ 13,677 $ 13,613 $ 13,953 $ 14,737 $ 15,236 $ 13,677 $ 15,236 
As a % of Loans  0.89%  0.90%  0.93%  0.99%  1.03%  0.89%  1.03%
As a % of Nonperforming Loans  166.50%  150.44%  135.40%  112.17%  99.46%  166.50%  99.46%
               
CHARGE-OFFS              
Commercial, Financial and Agricultural$ 304 $ 37 $ 135 $ 365 $ 239 $ 341 $ 529 
Real Estate - Construction    -      -      -      -      -      -      -  
Real Estate - Commercial    -    274   87   (26)  285   274   1,189 
Real Estate - Residential  205   478   587   476   484   683   789 
Real Estate - Home Equity  146   215   397   370   454   361   636 
Consumer  438   439   656   318   351   877   927 
Total Charge-Offs$ 1,093 $ 1,443 $ 1,862 $ 1,503 $ 1,813 $ 2,536 $ 4,070 
               
RECOVERIES              
Commercial, Financial and Agricultural$ 49 $ 39 $ 57 $ 45 $ 82 $ 88 $ 137 
Real Estate - Construction    -      -      -      -      -      -      -  
Real Estate - Commercial  237   81   13   86   54   318   84 
Real Estate - Residential  579   236   264   193   200   815   248 
Real Estate - Home Equity  81   59   37   42   33   140   57 
Consumer  308   236   194   225   215   544   573 
Total Recoveries$ 1,254 $ 651 $ 565 $ 591 $ 584 $ 1,905 $ 1,099 
               
NET CHARGE-OFFS$ (161)$ 792 $ 1,297 $ 912 $ 1,229 $ 631 $ 2,971 
               
Net Charge-Offs as a % of Average Loans(1)  (0.04)%  0.21%  0.34%  0.24%  0.33%  0.08%  0.41%
               
RISK ELEMENT ASSETS              
Nonaccruing Loans$ 8,214 $ 9,049 $ 10,305 $ 13,138 $ 15,320     
Other Real Estate Owned  14,622   17,450   19,290   25,219   30,167     
Total Nonperforming Assets$ 22,836 $ 26,499 $ 29,595 $ 38,357 $ 45,487     
               
Past Due Loans 30-89 Days $   3,872  $    3,599  $    5,775  $    4,335  $    5,858     
Past Due Loans 90 Days or More    -      -      -      -      -      
Classified Loans    45,058     49,780     53,551     61,411     69,152     
Performing Troubled Debt Restructuring's$ 35,526 $ 36,700 $ 35,634 $ 35,961 $ 41,632     
               
Nonperforming Loans as a % of Loans  0.54%  0.60%  0.69%  0.88%  1.03%    
Nonperforming Assets as a % of              
Loans and Other Real Estate  1.48%  1.73%  1.94%  2.54%  3.00%    
Nonperforming Assets as a % of Total Assets  0.83%  0.95%  1.06%  1.47%  1.71%    
               
(1) Annualized              
               

 

CAPITAL CITY BANK GROUP, INC.                   
AVERAGE BALANCE AND INTEREST RATES(1)                       
Unaudited                                            
                                                   
                                                   
  Second Quarter 2016  First Quarter 2016  Fourth Quarter 2015  Third Quarter 2015  Second Quarter 2015  Jun 2016 YTD
  Jun 2015 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$ 1,531,777  18,233