Press Release


Capital City Bank Group, Inc. Reports First Quarter 2018 Results

Company Release - 4/23/2018 7:00 AM ET

TALLAHASSEE, Fla., April 23, 2018 (GLOBE NEWSWIRE) -- Capital City Bank Group, Inc. (NASDAQ:CCBG) today reported net income of $5.8 million, or $0.34 per diluted share for the first quarter of 2018 compared to net income of $3,000, or $0.00 per diluted share for the fourth quarter of 2017, and $2.7 million, or $0.16 per diluted share for the first quarter of 2017. 

Net income for the first quarter of 2018 included a $1.5 million, or $0.09 per diluted share tax benefit related to a 2017 plan year pension plan contribution.  Net income for the fourth quarter of 2017 included a $4.1 million, or $0.24 per diluted share, income tax expense related to the re-measurement of our net deferred tax asset due to tax reform.

HIGHLIGHTS

  • Net interest income up 1.3% sequentially and 10.3% over prior year
  • 23 basis points cost of funds reflects the quality of our core deposit base (~ 35% noninterest bearing)
  • Period-end loan growth 4.7% over prior year
  • Continued efforts to restrain expense growth 
  • Net charge-offs of 20 basis points continues to reflect the quality of our loan portfolio
  • Well capitalized with common equity tier 1 ratio of 13.4% and total risk based capital ratio of 17.0%

“I am very encouraged by first quarter results,” said William G. Smith, Jr., Chairman, President and CEO.  “Florida is strong and the demographics of our markets are improving.  We are once again on the offense following a number of years playing defense after the crisis.  Loan growth, rising rates and a phenomenal core deposit base are all contributing to higher net interest income.  While we may be nearing the point of inflection, credit quality continues to improve.  Lowering our efficiency ratio is a top priority and we have multiple strategies in place to grow our revenues and manage expenses.  There is always more to be done, but I am pleased with our progress as we continue to focus on strategies that will produce long term value for our shareowners.”

Compared to the fourth quarter of 2017, the $1.1 million decrease in operating profit reflected a $1.0 million increase in noninterest expense and lower noninterest income of $0.5 million, partially offset by higher net interest income of $0.3 million and a $0.1 million reduction in the loan loss provision.

Compared to the first quarter of 2017, the $1.4 million increase in operating profit was attributable to higher net interest income of $2.0 million, partially offset by lower noninterest income of $0.2 million and a $0.4 million increase in the loan loss provision.

Our return on average assets (“ROA”) was 0.81% and our return on average equity (“ROE”) was 8.14% for the first quarter of 2018 compared to 0.39% and 4.00%, respectively, for the first quarter of 2017. 

Discussion of Operating Results

Tax-equivalent net interest income for the first quarter of 2018 was $21.9 million compared to $21.8 million for the fourth quarter of 2017 and $20.0 million for the first quarter of 2017.  During the first quarter of 2018, overnight funds increased as a result of seasonal growth in our public fund deposits, and to a lesser degree, savings accounts.  A portion of these overnight funds were used to fund growth in the loan and investment portfolios.  The increase in tax-equivalent net interest income compared to the first quarter of 2017 reflected growth in the loan portfolio and higher rates earned on overnight funds, investment securities, and variable rate loans, partially offset by a higher cost on our negotiated rate deposits. 

The federal funds target rate increased six times since December 2015 to 1.75% at the end of the first quarter of 2018, which positively affected our net interest income due to favorable repricing of our variable and adjustable rate earning assets. Although these increases have also resulted in higher rates paid on our negotiated rate deposits, we continue to prudently manage our overall cost of funds, which was 23 basis points for the first quarter of 2018, compared to 18 basis points for fourth quarter of 2017 and 13 basis points for the first quarter 2017.  Despite highly competitive fixed-rate loan pricing across most markets, we continue to review our loan pricing and make adjustments where appropriate.    

Our net interest margin for the first quarter of 2018 was 3.43%, a decrease of two basis points compared to the fourth quarter of 2017 and an increase of 22 basis points over the first quarter of 2017.  Relative to both comparative periods, the average yield for each earning asset category improved. The decrease in the margin compared to the fourth quarter of 2017 was due to seasonal growth in our overnight funds, resulting in a slightly less favorable asset mix.  The increase in the margin compared to the first quarter of 2017 was primarily attributable to loan growth and higher yields on overnight funds and investment securities, partially offset by higher rates on our negotiated rate deposits.

The provision for loan losses for the first quarter of 2018 was $0.7 million compared to $0.8 million for the fourth quarter of 2017 and $0.3 million for the first quarter of 2017.  The higher provision compared to the first quarter of 2017 reflected higher loan charge-offs and growth in the loan portfolio.  Net loan charge-offs for the first quarter of 2018 totaled $0.8 million compared to net loan charge-offs of $0.9 million for the fourth quarter of 2017 and $0.4 million for the first quarter of 2017.  At March 31, 2018, the allowance for loan losses of $13.3 million represented 0.80% of outstanding loans (net of overdrafts) and provided coverage of 181% of nonperforming loans compared to 0.80% and 186%, respectively, at December 31, 2017 and 0.84% and 161%, respectively, at March 31, 2017.

Noninterest income for the first quarter of 2018 totaled $12.5 million and reflected decreases of $0.5 million, or 3.3%, from the fourth quarter of 2017 and $0.2 million, or 1.9%, from the first quarter of 2017.  The decrease from both prior periods was primarily attributable to lower mortgage banking fees and generally reflected a seasonal slowdown in loan funding, and to a lesser extent, a lower margin on sold loans.      

Noninterest expense for the first quarter of 2018 totaled $27.9 million, an increase of $1.0 million, or 3.8%, over the fourth quarter of 2017 attributable to higher compensation expense of $0.6 million, occupancy expense of $0.1 million, and other real estate owned expense of $0.3 million.  The higher level of compensation expense was seasonal and reflected the reset of payroll taxes and incentives.  The increase in occupancy expense was attributable to higher maintenance costs.  Other real estate owned expense increased due to a valuation adjustment for one parcel of property. 

We realized an income tax benefit of $0.2 million for the first quarter of 2018 which included a discrete tax benefit of $1.5 million resulting from the effect of federal tax reform, enacted in December 2017, on a pension plan contribution made in the first quarter of 2018 for the 2017 pension plan year.  Absent this discrete item, our effective tax rate was approximately 24%.  Income tax expense for the fourth quarter of 2017 was $6.7 million and included a $4.1 million discrete tax expense related to the re-measurement of our net deferred tax asset, also due to the federal tax reform enacted in December.

Discussion of Financial Condition

Average earning assets were $2.592 billion for the first quarter of 2018, an increase of $80.5 million, or 3.2%, over the fourth quarter of 2017, and an increase of $63.3 million, or 2.5%, over the first quarter of 2017.  The change in earning assets over both periods reflected a higher level of total deposits.    

We maintained an average net overnight funds (deposits with banks plus fed funds sold less fed funds purchased) sold position of $240.9 million during the first quarter of 2018 compared to $174.6 million in the fourth quarter of 2017 and $245.2 million in the first quarter of 2017. The change in the average net overnight funds compared to both prior periods is related to variances in deposit balances which are discussed in further detail below.

Average loans increased $6.9 million, or 0.4% when compared to the fourth quarter of 2017, and have grown $62.1 million, or 3.9% when compared to the first quarter of 2017. The average increase compared to the fourth quarter of 2017 primarily reflected growth in commercial mortgage, construction, and consumer loans, partially offset by a reduction in the remaining loan types. Average growth over the first quarter of 2017 was experienced in all loan categories, with the exception of commercial and home equity loans. A portion of this growth compared to the first quarter 2017 was attributable to three separate loan pool purchases totaling $28.9 million.  The loans were individually reviewed and evaluated in accordance with our credit underwriting standards.

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

Nonperforming assets (nonaccrual loans and OREO) totaled $10.6 million at March 31, 2018, a decrease of $0.5 million, or 4.3%, from December 31, 2017 and $7.2 million, or 40.2%, from March 31, 2017.  Nonaccrual loans totaled $7.3 million at March 31, 2018, a $0.2 million increase over December 31, 2017 and a $1.0 million decrease from March 31, 2017.  Nonaccrual loan additions totaled $3.8 million for the first quarter of 2018 compared to $5.6 million for the fourth quarter of 2017 and $2.9 million for the first quarter of 2017.  The balance of OREO totaled $3.3 million at March 31, 2018, a decrease of $0.6 million and $6.2 million, respectively, from December 31, 2017 and March 31, 2017.  For the first quarter of 2018, we added properties totaling $0.3 million, sold properties totaling $0.4 million, and recorded valuation adjustments totaling $0.5 million. 

Average total deposits were $2.456 billion for the first quarter of 2018, an increase of $77.7 million, or 3.3% over the fourth quarter of 2017, and an increase of $48.8 million, or 2.0% over the first quarter of 2017. The increase in average deposits compared to the fourth quarter of 2017 reflected increases in negotiated NOW and savings accounts.  Average deposits compared to first quarter of 2017 reflected strong growth in noninterest bearing deposits and savings accounts.  Deposit levels remain strong, particularly given the increases in the fed funds rate. Average core deposits continue to experience growth. We monitor deposit rates on an ongoing basis as a prudent pricing discipline remains the key to managing our mix of deposits.

Average borrowings decreased $0.1 million compared to the fourth quarter of 2017 and decreased $4.6 million compared to the first quarter of 2017. Declines over both prior periods were primarily due to payoffs of FHLB advances, partially offset by increases in repurchase agreements.

Shareowners’ equity was $288.4 million at March 31, 2018, compared to $284.2 million at December 31, 2017 and $278.1 million at March 31, 2017.  Our leverage ratio was 10.36%, 10.47%, and 9.95%, respectively, on these dates.  Further, at March 31, 2018, our risk-adjusted capital ratio was 17.04% compared to 17.10% and 16.44% at December 31, 2017 and March 31, 2017, respectively.  Our common equity tier 1 ratio was 13.43% at March 31, 2018, compared to 13.42% at December 31, 2017 and 12.77% at March 31, 2017.  All of our capital ratios exceeded the threshold to be designated as “well-capitalized” under the Basel III capital standards. 

About Capital City Bank Group, Inc.

Capital City Bank Group, Inc. (NASDAQ:CCBG) is one of the largest publicly traded financial holding companies headquartered in Florida and has approximately $2.9 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 59 banking offices and 73 ATMs in Florida, Georgia and Alabama.  For more information about Capital City Bank Group, Inc., visit www.ccbg.com.

FORWARD-LOOKING STATEMENTS

Forward-looking statements in this Press Release are based on current plans and expectations that are subject to uncertainties and risks, which could cause our future results to differ materially.  The following factors, among others, could cause our actual results to differ: the accuracy of the financial statement estimates and assumptions; legislative or regulatory changes, including the Dodd-Frank Act, Basel III, and the ability to repay and qualified mortgage standards; fluctuations in inflation, interest rates, or monetary policies; the effects of security breaches and computer viruses that may affect our computer systems or fraud related to debit card products; changes in consumer spending and savings habits; our growth and profitability; the strength of the U.S. economy and the local economies where we conduct operations; the effects of a non-diversified loan portfolio, including the risks of geographic and industry concentrations; harsh weather conditions and man-made disasters; changes in the stock market and other capital and real estate markets; customer acceptance of third-party products and services; increased competition and its effect on pricing, including the long-term impact on our net interest margin from the repeal of Regulation Q; negative publicity and the impact on our reputation; technological changes, especially changes that allow out of market competitors to compete in our markets; changes in accounting; and our ability to manage the risks involved in the foregoing.  Additional factors can be found in our Annual Report on Form 10-K for the fiscal year ended December 31, 2017, 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, 2018Dec 31, 2017Sep 30, 2017Jun 30, 2017Mar 31, 2017
TANGIBLE COMMON EQUITY RATIO           
Shareowners' Equity (GAAP) $288,360 $284,210 $285,201 $281,513 $278,059 
Less: Goodwill (GAAP)  84,811  84,811  84,811  84,811  84,811 
Tangible Shareowners' Equity (non-GAAP)A 203,549  199,399  200,390  196,702  193,248 
Total Assets (GAAP)  2,924,832  2,898,794  2,790,842  2,814,843  2,895,531 
Less: Goodwill (GAAP)  84,811  84,811  84,811  84,811  84,811 
Tangible Assets (non-GAAP)B$2,840,021 $2,813,983 $2,706,031 $2,730,032 $2,810,720 
Tangible Common Equity Ratio (non-GAAP)A/B 7.17% 7.09% 7.41% 7.21% 6.88%
Actual Diluted Shares Outstanding (GAAP)C 17,088,419  17,071,107  17,045,326  17,025,148  16,978,681 
Tangible Book Value per Diluted Share (non-GAAP)A/C$11.91 $11.68 $11.76 $11.55 $11.38 
                 


CAPITAL CITY BANK GROUP, INC.      
EARNINGS HIGHLIGHTS      
Unaudited      
       
  Three Months Ended
(Dollars in thousands, except per share data) Mar 31, 2018 Dec 31, 2017 Mar 31, 2017
EARNINGS      
Net Income$5,773 $3 $2,744 
Diluted Net Income Per Share$0.34 $0.00 $0.16 
PERFORMANCE      
Return on Average Assets 0.81% 0.00% 0.39%
Return on Average Equity 8.14% 0.00% 4.00%
Net Interest Margin 3.43% 3.45% 3.21%
Noninterest Income as % of Operating Revenue 36.44% 37.51% 39.19%
Efficiency Ratio 81.07% 77.50% 85.33%
CAPITAL ADEQUACY      
Tier 1 Capital 16.30% 16.33% 15.68%
Total Capital 17.04% 17.10% 16.44%
Tangible Common Equity (1) 7.17% 7.09% 6.88%
Leverage 10.36% 10.47% 9.95%
Common Equity Tier 1 13.43% 13.42% 12.77%
Equity to Assets 9.86% 9.80% 9.60%
ASSET QUALITY      
Allowance as % of Non-Performing Loans 181.26% 185.87% 160.70%
Allowance as a % of Loans 0.80% 0.80% 0.84%
Net Charge-Offs as % of Average Loans 0.20% 0.21% 0.10%
Nonperforming Assets as % of Loans and ORE 0.64% 0.67% 1.11%
Nonperforming Assets as % of Total Assets 0.36% 0.38% 0.61%
STOCK PERFORMANCE      
High$26.50 $26.01 $21.79 
Low 22.80  22.21  19.22 
Close$24.75 $22.94 $21.39 
Average Daily Trading Volume 21,061  19,112  23,150 
       
(1)  Tangible common equity ratio is a non-GAAP financial measure.  For additional information, including a reconciliation to GAAP, refer to non-GAAP information previously noted.
     


CAPITAL CITY BANK GROUP, INC.          
CONSOLIDATED STATEMENT OF FINANCIAL CONDITION      
Unaudited          
           
 2018 2017
(Dollars in thousands) First Quarter Fourth Quarter Third Quarter Second Quarter First Quarter
ASSETS          
Cash and Due From Banks$47,804 $58,419 $50,420 $72,801 $47,650 
Funds Sold and Interest Bearing Deposits 250,821  227,023  140,694  162,377  290,897 
Total Cash and Cash Equivalents 298,625  285,442  191,114  235,178  338,547 
           
Investment Securities Available for Sale 471,836  480,911  510,846  529,686  541,102 
Investment Securities Held to Maturity 225,552  216,679  184,262  157,074  158,515 
Total Investment Securities 697,388  697,590  695,108  686,760  699,617 
           
Loans Held for Sale 4,845  4,817  7,800  8,213  7,498 
           
Loans, Net of Unearned Interest          
Commercial, Financial, & Agricultural 198,775  218,166  215,963  213,544  214,595 
Real Estate - Construction 80,236  77,966  67,813  67,331  59,938 
Real Estate - Commercial 551,309  535,707  527,331  519,140  503,868 
Real Estate - Residential 307,050  308,159  306,272  302,072  295,406 
Real Estate - Home Equity 223,994  229,513  228,499  230,995  231,300 
Consumer 284,356  278,622  273,670  269,539  268,921 
Other Loans 14,988  3,747  9,311  17,057  9,586 
Overdrafts 1,187  1,612  1,479  1,518  1,345 
Total Loans, Net of Unearned Interest 1,661,895  1,653,492  1,630,338  1,621,196  1,584,959 
Allowance for Loan Losses (13,258) (13,307) (13,339) (13,242) (13,335)
Loans, Net 1,648,637  1,640,185  1,616,999  1,607,954  1,571,624 
           
Premises and Equipment, Net 90,939  91,698  92,345  92,495  93,755 
Goodwill 84,811  84,811  84,811  84,811  84,811 
Other Real Estate Owned 3,330  3,941  5,987  7,968  9,501 
Other Assets 96,257  90,310  96,678  91,464  90,178 
Total Other Assets 275,337  270,760  279,821  276,738  278,245 
           
Total Assets$2,924,832 $2,898,794 $2,790,842 $2,814,843 $2,895,531 
           
LIABILITIES          
Deposits:          
Noninterest Bearing Deposits$890,482 $874,583 $870,644 $842,314 $836,011 
NOW Accounts 859,704  877,820  749,816  787,090  882,605 
Money Market Accounts 257,422  239,212  249,964  265,032  263,080 
Regular Savings Accounts 353,996  335,140  329,742  327,560  321,160 
Certificates of Deposit 137,280  143,122  147,451  149,937  156,449 
Total Deposits 2,498,884  2,469,877  2,347,617  2,371,933  2,459,305 
           
Short-Term Borrowings 4,893  7,480  6,777  6,105  7,603 
Subordinated Notes Payable 52,887  52,887  52,887  52,887  52,887 
Other Long-Term Borrowings 13,333  13,967  15,047  15,631  16,460 
Other Liabilities 66,475  70,373  83,313  86,774  81,217 
           
Total Liabilities 2,636,472  2,614,584  2,505,641  2,533,330  2,617,472 
           
SHAREOWNERS' EQUITY          
Common Stock 171  170  170  170  170 
Additional Paid-In Capital 37,343  36,674  35,892  35,522  34,859 
Retained Earnings 283,990  279,410  275,013  271,646  268,934 
Accumulated Other Comprehensive Loss, Net of Tax (33,144) (32,044) (25,874) (25,825) (25,904)
           
Total Shareowners' Equity 288,360  284,210  285,201  281,513  278,059 
           
Total Liabilities and Shareowners' Equity$2,924,832 $2,898,794 $2,790,842 $2,814,843 $2,895,531 
           
OTHER BALANCE SHEET DATA          
Earning Assets$2,614,949 $2,582,922 $2,473,940 $2,478,546 $2,582,971 
Interest Bearing Liabilities 1,679,515  1,669,628  1,551,684  1,604,242  1,700,244 
           
Book Value Per Diluted Share$16.87 $16.65 $16.73 $16.54 $16.38 
Tangible Book Value Per Diluted Share(1) 11.91  11.68  11.76  11.55  11.38 
           
Actual Basic Shares Outstanding 17,044  16,989  16,966  16,964  16,954 
Actual Diluted Shares Outstanding 17,088  17,071  17,045  17,025  16,979 
           
(1)  Tangible book value per diluted share is a non-GAAP financial measure.  For additional information, including a reconciliation to GAAP, refer to non-GAAP information previously noted.
 


CAPITAL CITY BANK GROUP, INC.          
CONSOLIDATED STATEMENT OF OPERATIONS       
Unaudited          
           
  2018  2017
(Dollars in thousands, except per share data) First Quarter Fourth Quarter Third Quarter Second Quarter First Quarter
           
INTEREST INCOME          
Interest and Fees on Loans$19,535 $19,513$19,479 $18,720$18,005
Investment Securities 2,762  2,520 2,416  2,169 2,042
Funds Sold 917  594 446  533 493
Total Interest Income 23,214  22,627 22,341  21,422 20,540
           
INTEREST EXPENSE          
Deposits 868  590 530  388 281
Short-Term Borrowings 8  5 15  17 45
Subordinated Notes Payable 475  431 420  404 379
Other Long-Term Borrowings 100  112 115  117 99
Total Interest Expense 1,451  1,138 1,080  926 804
Net Interest Income 21,763  21,489 21,261  20,496 19,736
Provision for Loan Losses 745  826 490  589 310
Net Interest Income after Provision for Loan Losses 21,018  20,663 20,771  19,907 19,426
           
NONINTEREST INCOME          
Deposit Fees 4,872  5,040 5,153  5,052 5,090
Bank Card Fees 2,811  2,830 2,688  2,870 2,803
Wealth Management Fees 2,173  2,172 2,197  2,073 1,842
Mortgage Banking Fees 1,057  1,410 1,480  1,556 1,308
Other 1,564  1,445 1,478  1,584 1,675
Total Noninterest Income 12,477  12,897 12,996  13,135 12,718
           
NONINTEREST EXPENSE          
Compensation 16,366  15,740 16,349  16,292 16,496
Occupancy, Net 4,551  4,400 4,501  4,555 4,381
Other Real Estate, Net 626  355 (118) 315 583
Other 6,363  6,402 5,975  6,759 6,462
Total Noninterest Expense 27,906  26,897 26,707  27,921 27,922
           
OPERATING PROFIT 5,589  6,663 7,060  5,121 4,222
Income Tax (Benefit) Expense (184) 6,660 2,505  1,560 1,478
NET INCOME$5,773 $3$4,555 $3,561$2,744
           
PER SHARE DATA          
Basic Net Income$0.34 $0.00$0.27 $0.21$0.16
Diluted Net Income 0.34  0.00 0.27  0.21 0.16
Cash Dividend$0.07 $0.07$0.07 $0.05$0.05
AVERAGE SHARES          
Basic  17,028  16,967 16,965  16,955 16,919
Diluted  17,073  17,050 17,044  17,016 16,944
 


CAPITAL CITY BANK GROUP, INC.          
ALLOWANCE FOR LOAN LOSSES           
AND RISK ELEMENT ASSETS          
Unaudited          
           
  2018  2017
(Dollars in thousands, except per share data) First Quarter Fourth Quarter Third Quarter Second Quarter First Quarter
           
ALLOWANCE FOR LOAN LOSSES          
Balance at Beginning of Period$13,307 $13,339 $13,242 $13,335 $13,431 
Provision for Loan Losses 745  826  490  589  310 
Net Charge-Offs 794  858  393  682  406 
Balance at End of Period$13,258 $13,307 $13,339 $13,242 $13,335 
As a % of Loans 0.80% 0.80% 0.82% 0.81% 0.84%
As a % of Nonperforming Loans 181.26% 185.87% 203.39% 166.23% 160.70%
           
CHARGE-OFFS          
Commercial, Financial and Agricultural$182 $664 $276 $324 $93 
Real Estate - Construction 7  -  -  -  - 
Real Estate - Commercial 290  42  94  478  71 
Real Estate - Residential 107  126  125  44  116 
Real Estate - Home Equity 158  48  50  -  92 
Consumer 695  577  455  537  624 
Total Charge-Offs$1,439 $1,457 $1,000 $1,383 $996 
           
RECOVERIES          
Commercial, Financial and Agricultural$166 $113 $79 $40 $81 
Real Estate - Construction 1  -  50  -  - 
Real Estate - Commercial 123  24  69  58  23 
Real Estate - Residential 84  141  60  202  213 
Real Estate - Home Equity 61  67  84  39  29 
Consumer 210  254  265  362  244 
Total Recoveries$645 $599 $607 $701 $590 
           
NET CHARGE-OFFS$794 $858 $393 $682 $406 
           
Net Charge-Offs as a % of Average Loans (1) 0.20% 0.21% 0.10% 0.17% 0.10%
           
RISK ELEMENT ASSETS          
Nonaccruing Loans$7,314 $7,159 $6,558 $7,966 $8,298 
Other Real Estate Owned 3,330  3,941  5,987  7,968  9,501 
Total Nonperforming Assets$10,644 $11,100 $12,545 $15,934 $17,799 
           
Past Due Loans 30-89 Days$4,268 $4,579 $5,687 $3,789 $3,263 
Past Due Loans 90 Days or More -  36  -  -  - 
Classified Loans 31,709  31,002  36,545  41,322  40,978 
Performing Troubled Debt Restructuring's$31,472 $32,164 $33,427 $35,436 $36,555 
           
Nonperforming Loans as a % of Loans 0.44% 0.43% 0.40% 0.49% 0.52%
Nonperforming Assets as a % of Loans and Other Real Estate 0.64% 0.67% 0.76% 0.97% 1.11%
Nonperforming Assets as a % of  Total Assets 0.36% 0.38% 0.45% 0.57% 0.61%
           
(1) Annualized          
           


CAPITAL CITY BANK GROUP, INC.                             
AVERAGE BALANCE AND INTEREST RATES(1)                        
Unaudited                                   
                                    
  First Quarter 2018  Fourth Quarter 2017  Third Quarter 2017  Second Quarter 2017  First Quarter 2017 
(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$1,647,612 $19,636 4.83%$1,640,738 $19,696 4.76%$1,638,578 $19,672 4.76%$1,608,629  18,880 4.71%$1,585,561 $18,137 4.64%
                                    
Investment Securities                                   
Taxable Investment Securities 619,137  2,523 1.64  602,353  2,263 1.50  588,518  2,150 1.45  591,825  1,898 1.28  600,528  1,784 1.20 
Tax-Exempt Investment Securities 84,800  318 1.50  94,329  393 1.67  98,463  407 1.65  100,742  414 1.64  97,965  396 1.62 
                                    
Total Investment Securities 703,937  2,841 1.62  696,682  2,656 1.52  686,981  2,557 1.48  692,567  2,312 1.34  698,493  2,180 1.26 
                                    
Funds Sold 240,916  917 1.54  174,565  594 1.35  140,728  446 1.26  200,834  533 1.06  245,153  493 0.81 
                                    
Total Earning Assets 2,592,465 $23,394 3.66% 2,511,985 $22,946 3.63% 2,466,287 $22,675 3.65% 2,502,030 $21,725 3.48% 2,529,207 $20,810 3.33%
                                    
Cash and Due From Banks 52,711       51,235       51,880       52,312       48,906      
Allowance for Loan Losses (13,651)      (13,524)      (13,542)      (13,662)      (13,436)     
Other Assets 260,595       272,755       275,335       276,799       280,463      
                                    
Total Assets$2,892,120      $2,822,451      $2,779,960      $2,817,479      $2,845,140      
                                    
LIABILITIES:                                   
Interest Bearing Deposits                                   
NOW Accounts$863,175 $659 0.31%$782,133 $400 0.20%$755,620 $339 0.18%$806,621 $222 0.11%$880,707 $134 0.06%
Money Market Accounts 246,576  103 0.17  249,953  80 0.13  262,486  80 0.12  261,726  57 0.09  259,106  35 0.06 
Savings Accounts 343,987  42 0.05  333,703  41 0.05  327,675  40 0.05  322,833  39 0.05  311,212  38 0.05 
Time Deposits 140,359  64 0.18  145,622  69 0.19  148,652  71 0.19  152,811  70 0.18  158,289  74 0.19 
Total Interest Bearing Deposits 1,594,097  868 0.23% 1,511,411  590 0.16% 1,494,433  530 0.14% 1,543,991  388 0.10% 1,609,314  281 0.07%
                                    
Short-Term Borrowings 8,869  8 0.37% 8,074  5 0.25% 9,920  15 0.59% 8,957  17 0.75% 12,810  45 1.43%
Subordinated Notes Payable 52,887  475 3.60  52,887  431 3.19  52,887  420 3.11  52,887  404 3.02  52,887  379 2.86 
Other Long-Term Borrowings 13,787  100 2.93  14,726  112 3.01  15,427  115 2.95  16,065  117 2.93  14,468  99 2.77 
                                    
Total Interest Bearing Liabilities 1,669,640 $1,451 0.37% 1,587,098 $1,138 0.29% 1,572,667 $1,080 0.28% 1,621,900 $926 0.23% 1,689,479 $804 0.20%
                                    
Noninterest Bearing Deposits 862,009       867,000       834,729       829,432       797,964      
Other Liabilities 72,969       80,309       87,268       84,486       79,208      
                                    
Total Liabilities 2,604,618       2,534,407       2,494,664       2,535,818       2,566,651      
                                    
SHAREOWNERS' EQUITY: 287,502       288,044       285,296       281,661       278,489      
                                    
Total Liabilities and Shareowners' Equity$2,892,120      $2,822,451      $2,779,960      $2,817,479      $2,845,140      
                                    
Interest Rate Spread  $21,943 3.29%  $21,808 3.33%  $21,595 3.37%  $20,799 3.25%  $20,006 3.14%
                                    
Interest Income and Rate Earned(1)   23,394 3.66    22,946 3.63    22,675 3.65    21,725 3.48    20,810 3.33 
Interest Expense and Rate Paid(2)   1,451 0.23    1,138 0.18    1,080 0.17    926 0.15    804 0.13 
                                    
Net Interest Margin  $21,943 3.43%  $21,808 3.45%  $21,595 3.48%  $20,799 3.33%  $20,006 3.21%
                                    
(1)  Interest and average rates are calculated on a tax-equivalent basis using a 25% Federal tax rate for 2018 and a 35% Federal tax rate for 2017.    
(2)  Rate calculated based on average earning assets.                       
                                

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

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Source: Capital City Bank Group
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