Press Release


Capital City Bank Group, Inc. Reports Fourth Quarter and Full Year 2019 Results

Company Release - 1/30/2020 7:00 AM ET

TALLAHASSEE, Fla., Jan. 30, 2020 (GLOBE NEWSWIRE) -- Capital City Bank Group, Inc. (NASDAQ: CCBG) today reported net income of $8.6 million, or $0.51 per diluted share for the fourth quarter of 2019 compared to net income of $8.5 million, or $0.50 per diluted share for the third quarter of 2019, and $8.5 million, or $0.50 per diluted share for the fourth quarter of 2018. 

For the full year 2019, net income totaled $30.8 million, or $1.83 per diluted share, compared to net income of $26.2 million, or $1.54 per diluted share for 2018.  Net income for 2018 included tax benefits totaling $3.3 million, or $0.19 per diluted share related to 2017 plan year pension contributions made in 2018.

Fourth Quarter 2019 HIGHLIGHTS

  • Operating revenues held firm despite third and fourth quarter Fed rate reductions  
    - Highlights the value of our revenue diversification and core deposit franchise
  • Average loans increased $9 million, or 0.5% sequentially
  • Loan loss provision decreased $1.0 million sequentially
  • Entered into a definitive agreement to acquire 51% ownership in Brand Mortgage, LLC

Full Year 2019 HIGHLIGHTS

  • Strong revenue growth
    - Net interest income increased 12%
    - Noninterest income increased 3%
  • Net interest margin of 3.85%, increased 21 basis points
  • Average loans increased $104 million, or 6%
  • Average deposit balances increased $115 million, or 5%
  • Continued strong credit quality
    - Loan loss provision decreased $0.9 million, or 31%
    - Nonperforming assets decreased $3.7 million, or 40%
  • Tangible common equity ratio, a non-GAAP financial measure, increased 48 basis points to 8.06%
  • Tangible book value per share, a non-GAAP financial measure, increased 10.9% to $14.37

“Capital City wrapped up 2019 with a strong fourth quarter and solid performance for the year as annual earnings per share increased 19%,” said William G. Smith, Jr., Chairman, President and CEO.  “While rates declined throughout the year, our net interest income and net interest margin increased $10.7 million and 21 basis points, respectively.  Wealth management, mortgage banking and bankcard fees drove $1.5 million growth in noninterest income, while our efficiency ratio continues to show significant improvement.  Loan growth in 2019 was lower than projected, but we know our markets, operate within our risk profile and will not unnecessarily compromise on rate or quality.  For the year, net charge-offs were 0.13% of average loans and our credit quality metrics continued to improve.  Florida and Georgia are strong and growing and I remain optimistic.  Additionally, I am excited about our recent announcement to acquire a 51% ownership interest in Brand Mortgage, which we expect to close later this quarter and operate as Capital City Home Loans.  There is a wonderful chemistry between our two management teams and I believe this strategic alliance will significantly enhance our overall mortgage banking business.  Your management team will continue to focus on implementing strategies that produce long-term value for our shareowners and I appreciate your continued support.”

Compared to the third quarter of 2019, the $0.1 million increase in net income reflected a $1.0 million decrease in the loan loss provision, lower income taxes of $0.4 million, and a $0.1 million increase in net interest income, partially offset by higher noninterest expense of $1.3 million and lower noninterest income of $0.1 million.

Compared to the fourth quarter of 2018, the $0.1 million increase in net income was attributable to higher net interest income of $1.9 million, higher noninterest income of $0.6 million, and a $0.6 million decrease in the loan loss provision, partially offset by higher noninterest expense of $2.6 million and income taxes of $0.4 million.

The increase in net income of $4.6 million for the full year 2019 versus 2018 was attributable to higher net interest income of $10.8 million, higher noninterest income of $1.5 million, and a $0.9 million decrease in the loan loss provision, partially offset by higher income taxes of $6.5 million and noninterest expense of $2.1 million. 

Our return on average assets (“ROA”) was 1.14% and our return on average equity (“ROE”) was 10.39% for the fourth quarter of 2019.  These metrics were 1.14% and 10.51% for the third quarter of 2019, respectively, and 1.18% and 11.10% for the fourth quarter of 2018, respectively.  For the full year 2019, our ROA was 1.03% and our ROE was 9.72% compared to 0.92% and 8.89%, respectively, for 2018.

Discussion of Operating Results

Tax-equivalent net interest income for the fourth quarter of 2019 was $26.4 million compared to $26.3 million for the third quarter of 2019 and $24.5 million for the fourth quarter of 2018.  For the full year 2019, tax-equivalent net interest income totaled $103.9 million compared to $93.2 million for 2018.  Compared to the third quarter of 2019, growth in both our overnight funds and loans offset the unfavorable rate variance due to the lower overnight funds rate.  Compared to the prior-year periods, the increase in net interest income was driven by deposit growth (predominately noninterest bearing), which funded growth in overnight funds and loans.  Additionally, average yields/rates were generally favorable as higher rates prior to 2019 continued to migrate through the earning asset portfolios.     

The federal funds target rate reached a recent high in the second quarter of 2019 at a range of 2.25% to 2.50%. During the second half of 2019, the Federal Open Market Committee reduced rates by an aggregate of 75 basis points to the current range of 1.50% to 1.75%.  These rate cuts resulted in downward repricing of our variable/adjustable rate earning assets, which to date has been offset by loan growth and a corresponding reduction in rates paid on our negotiated rate deposit products.  We continue to prudently manage our overall cost of funds, which was 26 basis points for the fourth quarter of 2019, compared to 33 basis points for the third quarter of 2019.  Due to highly competitive fixed-rate loan pricing in our markets, we continue to review our loan pricing and make adjustments where we believe appropriate and prudent.   

Our net interest margin for the fourth quarter of 2019 was 3.89%, a decrease of three basis points from the third quarter of 2019 and an increase of eight basis points over the fourth quarter of 2018.  For the full year 2019, the net interest margin was 3.85%, a 21 basis point increase compared to 2018.  The decrease in the margin compared to the third quarter 2019 was due primarily to the growth and composition of our earning assets. The increase in the margin compared to the fourth quarter 2018 reflected a three basis point increase in our earning asset yield and a five basis point decline in our cost of funds.  The increase in the margin compared to 2018 was attributable to a 29 basis point increase in our earning asset yield, partially offset by an eight basis point increase in our cost of funds.  In general, overnight rates rose into the second quarter 2019, at which time they reversed and began to fall in response to the Fed rate cuts.  

The provision for loan losses for the fourth quarter of 2019 was negative $0.2 million and reflected a lower level of net loan losses.  This compares to a provision expense of $0.8 million for the third quarter of 2019 and $0.4 million for the fourth quarter of 2018.  For the full year 2019, the loan loss provision expense was $2.0 million compared to $2.9 million in 2018.  At December 31, 2019, the allowance for loan losses of $13.9 million represented 0.75% of outstanding loans (net of overdrafts) and provided coverage of 311% of nonperforming loans compared to 0.78% and 291%, respectively, at September 30, 2019 and 0.80% and 207%, respectively, at December 31, 2018.

Noninterest income for the fourth quarter of 2019 totaled $13.8 million, a decrease of $0.1 million, or 0.5%, from the third quarter of 2019 and a $0.6 million, or 4.5%, increase over the fourth quarter of 2018.  For the full year 2019, noninterest income totaled $53.1 million, a $1.5 million, or 2.9%, increase over 2018, which reflected higher wealth management fees of $1.8 million, mortgage banking fees of $0.6 million, and bank card fees of $0.6 million, partially offset by lower deposit fees of $0.6 million and other income of $0.9 million.  The improvement in wealth management fees was driven by higher trading activity by our retail brokerage clients and to a lesser extent growth in assets under management.  A lower rate environment drove higher residential loan production and the increase in mortgage banking fees.  Higher debit card utilization by our clients and credit card promotions throughout the year drove the improvement in bank card fees.  The decline in deposit fees reflected lower overdraft fees and the reduction in other income was primarily attributable to a miscellaneous recovery in the fourth quarter of 2018 and lower miscellaneous fees.  The same aforementioned factors drove the variance versus the fourth quarter of 2018.        

Noninterest expense for the fourth quarter of 2019 totaled $29.1 million, an increase of $1.3 million, or 4.6%, over the third quarter of 2019 and $2.6 million, or 9.9%, over the fourth quarter of 2018.  Compared to the third quarter of 2019, higher compensation expense (primarily incentives) and legal/professional fees related to the Brand Mortgage, LLC transaction drove the increase.  The increase over the fourth quarter of 2018 was primarily attributable to lower other real estate owned (“OREO”) expense in the fourth quarter of 2018, which reflected a large gain from the sale of a banking office.  Higher compensation expense (base salaries and commissions) also contributed to the variance.  For the full year 2019, noninterest expense totaled $113.6 million, a $2.1 million, or 1.9% increase over 2018, which primarily reflected higher compensation expense of $2.4 million (base salaries and commissions) and OREO expense of $1.0 million, partially offset by lower other expense of $1.2 million (primarily legal fees, professional fees, and FDIC insurance fees).       
       
We realized income tax expense of $2.5 million (effective rate of 22.9%) for the fourth quarter of 2019 compared to $3.0 million (effective rate of 25.9%) for the third quarter of 2019 and $2.1 million (effective rate of 20.4%) for the fourth quarter of 2018.  Income tax expense for the third quarter of 2019 was unfavorably impacted by net discrete items totaling $0.3 million.  For the full year 2019, income tax expense totaled $9.9 million (effective rate of 24.4%) compared to $3.4 million (effective rate of 11.5%) for 2018.  During 2018, we realized tax benefits totaling $3.3 million (1Q - $1.5 million, 2Q - $1.4 million, 3Q - $0.4 million) resulting from the effect of federal tax reform on pension plan contributions made in 2018 for the plan year 2017.     

Discussion of Financial Condition

Average earning assets were $2.695 billion for the fourth quarter of 2019, an increase of $24.6 million, or 0.9%, over the third quarter of 2019, and an increase of $140.2 million, or 5.5%, over the fourth quarter of 2018.  The increase in average earning assets compared to both prior periods reflected a higher level of deposits, primarily noninterest bearing accounts.

We maintained an average net overnight funds (deposits with banks plus fed funds sold less fed funds purchased) sold position of $228.1 million in the fourth quarter of 2019 compared to an average net overnight funds sold position of $207.1 million in the third quarter of 2019 and $80.8 million in the fourth quarter of 2018.  The increase compared to both prior periods reflected deposit growth and runoff from the investment portfolio, partially offset by loan growth.    

Average loans increased $8.6 million, or 0.5% compared to the third quarter of 2019, and grew by $60.6 million, or 3.4% compared to the fourth quarter of 2018.  The increase compared to both prior periods reflected growth in all our loan types except institutional loans, consumer loans, and home equity loans.  During 2019, we purchased adjustable rate residential loans totaling $14.9 million and a fixed rate commercial loan pool totaling $10.3 million, in each case based on principal balances at the time of purchase.

Without compromising our credit standards or taking on inordinate interest rate risk, we have modified some of our lending programs to address the highly competitive rate environment. We continue to closely monitor our markets and make minor rate adjustments as necessary.

Nonperforming assets (nonaccrual loans and OREO) totaled $5.4 million at December 31, 2019, comparable to September 30, 2019, and a $3.7 million, or 40.4%, decrease from December 31, 2018.  Nonaccrual loans totaled $4.5 million at December 31, 2019, a $0.5 million decrease from September 30, 2019 and a $2.4 million decrease from December 31, 2018.  The balance of OREO totaled $1.0 million at December 31, 2019, an increase of $0.4 million over September 30, 2019 and a $1.3 million decrease from December 31, 2018. 

Average total deposits were $2.525 billion for the fourth quarter of 2019, an increase of $29.2 million, or 1.2%, from the third quarter of 2019, and an increase of $112.6 million, or 4.7%, over the fourth quarter of 2018.  The increase in average deposits compared to both prior periods primarily reflected increases in noninterest bearing deposits, partially offset by declines in money market accounts and certificates of deposit.

We continue to closely monitor and manage deposit levels as part of our overall liquidity position and believe a prudent pricing discipline remains the key to managing our mix of deposits.

Average borrowings for the fourth quarter 2019 decreased $1.7 million compared to the third quarter 2019, and declined $11.2 million compared to the fourth quarter of 2018. Declines compared to both prior periods occurred in both short-term and long-term borrowings.     

Shareowners equity was $326.7 million at December 31, 2019 compared to $321.6 million at September 30, 2019 and $302.6 million at December 31, 2018.  Our leverage ratio was 11.25%, 11.09%, and 10.89%, respectively, on these dates.  At December 31, 2019, our total risk-based capital ratio was 17.90% compared to 17.59% and 17.13%, respectively.  Our common equity tier 1 capital ratio was 14.47% at December 31, 2019 compared to 14.13% at September 30, 2019 and 13.58% at December 31, 2018.  All of our regulatory capital ratios exceeded the threshold to be designated as “well-capitalized” under the Basel III capital standards.  Further, our tangible common equity ratio was 8.05% at December 31, 2019 compared to 8.31% and 7.58% at September 30, 2019 and December 31, 2018, respectively. 

About Capital City Bank Group, Inc.

Capital City Bank Group, Inc. (NASDAQ: CCBG) is one of the largest publicly traded financial holding companies headquartered in Florida and has approximately $3.1 billion in assets.  We provide a full range of banking services, including traditional deposit and credit services, mortgage banking, asset management, trust, merchant services, bankcards and securities brokerage services.  Our bank subsidiary, Capital City Bank, was founded in 1895 and now has 57 banking offices and 82 ATMs in Florida, Georgia and Alabama.  For more information about Capital City Bank Group, Inc., visit www.ccbg.com.

FORWARD-LOOKING STATEMENTS

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

USE OF NON-GAAP FINANCIAL MEASURES

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

(Dollars in Thousands) Dec 31, 2019Sep 30, 2019Jun 30, 2019Mar 31, 2019Dec 31, 2018
Shareowners' Equity (GAAP) $327,016 $321,562 $314,595 $308,986 $302,587 
Less: Goodwill (GAAP)  84,811  84,811  84,811  84,811  84,811 
Tangible Shareowners' Equity (non-GAAP)A 242,205  236,751  229,784  224,175  217,776 
Total Assets (GAAP)  3,088,953  2,934,513  3,017,654  3,052,051  2,959,183 
Less: Goodwill (GAAP)  84,811  84,811  84,811  84,811  84,811 
Tangible Assets (non-GAAP)B$3,004,142 $2,849,702 $2,932,843 $2,967,240 $2,874,372 
Tangible Common Equity Ratio (non-GAAP)A/B 8.06% 8.31% 7.83% 7.56% 7.58%
Actual Diluted Shares Outstanding (GAAP)C 16,855,161  16,797,241  16,773,449  16,840,496  16,808,542 
Tangible Book Value per Diluted Share (non-GAAP)A/C$14.37 $14.09 $13.70 $13.31 $12.96 
                 


           
CAPITAL CITY BANK GROUP, INC. 
EARNINGS HIGHLIGHTS 
Unaudited 
           
  Three Months Ended Twelve Months Ended
(Dollars in thousands, except per share data) Dec 31, 2019 Sep 30, 2019 Dec 31, 2018 Dec 31, 2019 Dec 31, 2018
           
EARNINGS          
Net Income$8,565 $8,481 $8,458 $30,807 $26,224 
Net Income Per Common Share$0.51 $0.50 $0.50 $1.83 $1.54 
PERFORMANCE          
Return on Average Assets 1.14% 1.14% 1.18% 1.03% 0.92%
Return on Average Equity 10.39% 10.51% 11.10% 9.72% 8.89%
Net Interest Margin 3.89% 3.92% 3.81% 3.85% 3.64%
Noninterest Income as % of Operating Revenue 34.50% 34.67% 35.22% 33.92% 35.79%
Efficiency Ratio 72.48% 69.27% 70.21% 72.40% 77.05%
CAPITAL ADEQUACY          
Tier 1 Capital Ratio 17.16% 16.83% 16.36% 17.16% 16.36%
Total Capital Ratio 17.90% 17.59% 17.13% 17.90% 17.13%
Leverage Ratio 11.25% 11.09% 10.89% 11.25% 10.89%
Common Equity Tier 1 Ratio 14.47% 14.13% 13.58% 14.47% 13.58%
Tangible Common Equity Ratio(1) 8.06% 8.31% 7.58% 8.06% 7.58%
Equity to Assets 10.59% 10.96% 10.23% 10.59% 10.23%
ASSET QUALITY          
Allowance as % of Non-Performing Loans 310.99% 290.55% 206.79% 310.99% 206.79%
Allowance as a % of Loans 0.75% 0.78% 0.80% 0.75% 0.80%
Net Charge-Offs as % of Average Loans 0.05% 0.23% 0.10% 0.13% 0.12%
Nonperforming Assets as % of Loans and ORE 0.29% 0.30% 0.51% 0.29% 0.51%
Nonperforming Assets as % of Total Assets 0.18% 0.19% 0.31% 0.18% 0.31%
STOCK PERFORMANCE          
High$30.95 $28.00 $26.95 $30.95 $26.95 
Low 25.75  23.70  19.92  21.04  19.92 
Close$30.50 $27.45 $23.21 $30.50 $23.21 
Average Daily Trading Volume 41,247  25,596  21,455  27,496  21,082 
           
(1) Tangible common equity ratio is a non-GAAP financial measure.  For additional information, including a reconciliation to GAAP, refer to page 4. 
           


           
CAPITAL CITY BANK GROUP, INC. 
CONSOLIDATED STATEMENT OF FINANCIAL CONDITION
Unaudited          
           
  2019 2018
(Dollars in thousands) Fourth Quarter Third Quarter Second Quarter First Quarter Fourth Quarter
ASSETS          
Cash and Due From Banks$60,087 $61,151 $53,731 $49,501 $62,032 
Funds Sold and Interest Bearing Deposits 318,336  177,389  234,097  304,213  213,968 
Total Cash and Cash Equivalents 378,423  238,540  287,828  353,714  276,000 
           
Investment Securities Available for Sale 403,601  376,981  410,851  429,016  446,157 
Investment Securities Held to Maturity 239,539  240,303  229,516  226,179  217,320 
  Total Investment Securities 643,140  617,284  640,367  655,195  663,477 
           
Loans Held for Sale 9,509  13,075  9,885  4,557  6,869 
           
Loans, Net of Unearned Interest          
Commercial, Financial, & Agricultural 255,365  259,870  265,001  238,942  233,689 
Real Estate - Construction 115,018  111,358  101,372  87,123  89,527 
Real Estate - Commercial 625,556  610,726  614,618  615,129  602,061 
Real Estate - Residential 353,642  354,545  349,843  338,574  334,197 
Real Estate - Home Equity 197,360  197,326  201,579  209,194  210,111 
Consumer 279,565  277,970  288,196  296,351  295,040 
Other Loans 7,808  14,248  13,131  10,430  8,018 
Overdrafts 1,615  1,710  1,442  1,362  1,582 
Total Loans, Net of Unearned Interest 1,835,929  1,827,753  1,835,182  1,797,105  1,774,225 
Allowance for Loan Losses (13,905) (14,319) (14,593) (14,120) (14,210)
Loans, Net 1,822,024  1,813,434  1,820,589  1,782,985  1,760,015 
           
Premises and Equipment, Net 84,543  85,810  86,005  86,846  87,190 
Goodwill 84,811  84,811  84,811  84,811  84,811 
Other Real Estate Owned 953  526  1,010  1,902  2,229 
Other Assets 65,550  81,033  87,159  82,041  78,592 
Total Other Assets 235,857  252,180  258,985  255,600  252,822 
           
Total Assets$3,088,953 $2,934,513 $3,017,654 $3,052,051 $2,959,183 
           
LIABILITIES          
Deposits:          
Noninterest Bearing Deposits$1,044,699 $1,022,774 $1,024,898 $995,853 $947,858 
NOW Accounts 902,499  728,395  810,568  887,453  867,209 
Money Market Accounts 217,839  239,410  240,181  244,628  237,739 
Regular Savings Accounts 374,396  372,601  371,773  372,414  358,306 
Certificates of Deposit 106,021  109,827  113,684  116,946  120,744 
Total Deposits 2,645,454  2,473,007  2,561,104  2,617,294  2,531,856 
           
Short-Term Borrowings 6,404  10,622  9,753  8,983  13,541 
Subordinated Notes Payable 52,887  52,887  52,887  52,887  52,887 
Other Long-Term Borrowings 6,514  6,963  7,313  7,661  8,568 
Other Liabilities 50,678  69,472  72,002  56,240  49,744 
           
Total Liabilities 2,761,937  2,612,951  2,703,059  2,743,065  2,656,596 
           
SHAREOWNERS' EQUITY          
Common Stock 168  167  167  168  167 
Additional Paid-In Capital 32,092  31,075  30,751  31,929  31,058 
Retained Earnings 322,937  316,551  310,247  304,763  300,177 
Accumulated Other Comprehensive Loss, Net of Tax (28,181) (26,231) (26,570) (27,874) (28,815)
           
Total Shareowners' Equity 327,016  321,562  314,595  308,986  302,587 
           
Total Liabilities and Shareowners' Equity$3,088,953 $2,934,513 $3,017,654 $3,052,051 $2,959,183 
           
OTHER BALANCE SHEET DATA          
Earning Assets$2,806,913 $2,635,501 $2,719,530 $2,761,070 $2,658,539 
Interest Bearing Liabilities 1,666,560  1,520,705  1,606,159  1,690,972  1,658,994 
           
Book Value Per Diluted Share$19.40 $19.14 $18.76 $18.35 $18.00 
Tangible Book Value Per Diluted Share(1) 14.37  14.09  13.70  13.31  12.96 
           
Actual Basic Shares Outstanding 16,772  16,749  16,746  16,812  16,748 
Actual Diluted Shares Outstanding 16,855  16,797  16,773  16,840  16,809 
           
(1)Tangible book value per diluted share is a non-GAAP financial measure.  For additional information, including a reconciliation to GAAP, refer to page 4.
 


                   
CAPITAL CITY BANK GROUP, INC. 
CONSOLIDATED STATEMENT OF OPERATIONS
Unaudited            
                   
               Twelve Months Ended
  2019 2018 December 31,
(Dollars in thousands, except per share data) Fourth
Quarter
 Third
Quarter

 Second
Quarter

 First
Quarter

 Fourth
Quarter
 2019
 2018 
                   
INTEREST INCOME                  
Interest and Fees on Loans$23,842 $23,992 $23,765 $22,616 $22,431 $94,215 $84,117 
Investment Securities 3,221  3,307  3,393  3,513  3,478  13,434  12,868 
Funds Sold 945  1,142  1,507  1,593  461  5,187  2,410 
Total Interest Income 28,008  28,441  28,665  27,722  26,370  112,836  99,395 
                   
INTEREST EXPENSE                  
Deposits 1,157  1,596  1,988  2,099  1,312  6,840  4,243 
Short-Term Borrowings 16  27  31  35  53  109  110 
Subordinated Notes Payable 525  558  596  608  572  2,287  2,167 
Other Long-Term Borrowings 56  63  66  72  85  257  371 
Total Interest Expense 1,754  2,244  2,681  2,814  2,022  9,493  6,891 
Net Interest Income 26,254  26,197  25,984  24,908  24,348  103,343  92,504 
Provision for Loan Losses (162) 776  646  767  457  2,027  2,921 
Net Interest Income after Provision for
  Loan Losses
 26,416  25,421  25,338  24,141  23,891  101,316  89,583 
                   
NONINTEREST INCOME                  
Deposit Fees 4,980  4,961  4,756  4,775  5,172  19,472  20,093 
Bank Card Fees 3,131  2,972  3,036  2,855  2,830  11,994  11,378 
Wealth Management Fees 2,761  2,992  2,404  2,323  2,320  10,480  8,711 
Mortgage Banking Fees 1,542  1,587  1,199  993  1,129  5,321  4,735 
Other 1,414  1,391  1,375  1,606  1,787  5,786  6,648 
Total Noninterest Income 13,828  13,903  12,770  12,552  13,238  53,053  51,565 
                   
NONINTEREST EXPENSE                  
Compensation 17,363  16,203  16,437  16,349  16,322  66,352  63,921 
Occupancy, Net 4,680  4,710  4,537  4,509  4,804  18,436  18,503 
Other Real Estate, Net 102  6  75  363  (1,663) 546  (442)
Other 6,997  6,954  7,347  6,977  7,042  28,275  29,521 
Total Noninterest Expense 29,142  27,873  28,396  28,198  26,505  113,609  111,503 
                   
OPERATING PROFIT 11,102  11,451  9,712  8,495  10,624  40,760  29,645 
Income Tax Expense 2,537  2,970  2,387  2,059  2,166  9,953  3,421 
NET INCOME$8,565 $8,481 $7,325 $6,436 $8,458 $30,807 $26,224 
                   
PER SHARE DATA                  
Basic Net Income$0.51 $0.51 $0.44 $0.38 $0.50 $1.84 $1.54 
Diluted Net Income 0.51  0.50  0.44  0.38  0.50  1.83  1.54 
Cash Dividend$0.13 $0.13 $0.11 $0.11 $0.09 $0.48 $0.32 
AVERAGE SHARES                  
Basic  16,750  16,747  16,791  16,791  16,989  16,770  17,029 
Diluted  16,834  16,795  16,818  16,819  17,050  16,827  17,072 
                      


               
CAPITAL CITY BANK GROUP, INC. 
ALLOWANCE FOR LOAN LOSSES  
AND RISK ELEMENT ASSETS 
Unaudited 
               
            Twelve Months Ended
  2019 2018 December 31,
(Dollars in thousands, except per share data) Fourth
Quarter
 Third
Quarter
 Second
Quarter
 First
Quarter
 Fourth
Quarter
 2019 2018
               
ALLOWANCE FOR LOAN LOSSES              
Balance at Beginning of Period$14,319 $14,593 $14,120 $14,210 $14,219 $14,210 $13,307 
Provision for Loan Losses (162) 776  646  767  457  2,027  2,921 
Net Charge-Offs 252  1,050  173  857  466  2,332  2,018 
Balance at End of Period$13,905 $14,319 $14,593 $14,120 $14,210 $13,905 $14,210 
As a % of Loans 0.75% 0.78% 0.79% 0.78% 0.80% 0.75% 0.80%
As a % of Nonperforming Loans 310.99% 290.55% 259.55% 279.77% 206.79% 310.99% 206.79%
               
CHARGE-OFFS              
Commercial, Financial and Agricultural$149 $289 $235 $95 $53 $768 $644 
Real Estate - Construction 58  223  -  -  -  281  7 
Real Estate - Commercial 33  26  -  155  -  214  315 
Real Estate - Residential 27  44  65  264  111  400  780 
Real Estate - Home Equity -  333  45  52  106  430  533 
Consumer 819  744  520  795  728  2,878  2,395 
Total Charge-Offs$1,086 $1,659 $865 $1,361 $998 $4,971 $4,674 
               
RECOVERIES              
Commercial, Financial and Agricultural$127 $86 $58 $74 $128 $345 $459 
Real Estate - Construction -  -  -  -  25  -  26 
Real Estate - Commercial 266  142  100  70  13  578  373 
Real Estate - Residential 116  46  223  44  106  429  643 
Real Estate - Home Equity 25  58  60  32  61  175  191 
Consumer 300  277  251  284  199  1,112  964 
Total Recoveries$834 $609 $692 $504 $532 $2,639 $2,656 
               
NET CHARGE-OFFS$252 $1,050 $173 $857 $466 $2,332 $2,018 
               
Net Charge-Offs as a % of Average Loans (1) 0.05% 0.23% 0.04% 0.20% 0.10% 0.13% 0.12%
               
RISK ELEMENT ASSETS              
Nonaccruing Loans$4,472 $4,928 $5,622 $5,047 $6,872     
Other Real Estate Owned 953  526  1,010  1,902  2,229     
Total Nonperforming Assets$5,425 $5,454 $6,632 $6,949 $9,101     
               
Past Due Loans 30-89 Days$4,871 $5,120 $5,443 $4,682 $4,757     
Past Due Loans 90 Days or More (accruing) -  -  -  -  -     
Classified Loans 20,847  21,323  26,406  22,219  22,889     
Performing Troubled Debt Restructuring's$16,888 $18,284 $18,737 $20,791 $22,084     
               
Nonperforming Loans as a % of Loans 0.24% 0.27% 0.30% 0.28% 0.39%    
Nonperforming Assets as a % of Loans and              
  Other Real Estate 0.29% 0.30% 0.36% 0.39% 0.51%    
Nonperforming Assets as a % of Total Assets 0.18% 0.19% 0.22% 0.23% 0.31%    
               
(1) Annualized              
               


                                            
CAPITAL CITY BANK GROUP, INC.               
AVERAGE BALANCE AND INTEREST RATES(1)               
Unaudited                                                 
                                                  
  Fourth Quarter 2019  Third Quarter 2019  Second Quarter 2019  First Quarter 2019  Fourth Quarter 2018  Dec 2019 YTD  Dec 2018 YTD 
(Dollars in thousands) Average
Balance
 Interest Average
Rate
  Average
Balance
 Interest Average
Rate
  Average
Balance
 Interest Average
Rate
  Average
Balance
 Interest Average
Rate
  Average
Balance
 Interest Average
Rate
  Average
Balance
 Interest Average
Rate
  Average
Balance
 Interest Average
Rate
 
ASSETS:                                                 
Loans, Net of Unearned Interest$1,846,190  23,958 5.15%$1,837,548  24,113 5.21%$1,823,311  23,873 5.25%$1,780,406  22,718 5.18%$1,785,570  22,556 5.01%$1,822,087  94,662 5.20%$1,718,348  84,550 4.92%
                                                  
Investment Securities                                                 
Taxable Investment Securities 610,046  3,186 2.08  607,363  3,249 2.13  614,775  3,301 2.15  618,127  3,387 2.20  637,735  3,325 2.08  612,541  13,123 2.14  641,120  12,083 1.88 
Tax-Exempt Investment Securities 10,327  43 1.67  18,041  73 1.63  29,342  116 1.58  40,575  158 1.56  50,362  193 1.54  24,471  390 1.60  67,037  1,006 1.50 
                                                  
Total Investment Securities 620,373  3,229 2.08  625,404  3,322 2.12  644,117  3,417 2.12  658,702  3,545 2.16  688,097  3,518 2.04  637,012  13,513 2.12  708,157  13,089 1.85 
                                                  
Funds Sold 228,137  945 1.64  207,129  1,142 2.19  251,789  1,507 2.40  265,694  1,593 2.43  80,815  461 2.26  237,999  5,187 2.18  135,379  2,410 1.78 
                                                  
Total Earning Assets 2,694,700 $28,132 4.14% 2,670,081 $28,577 4.25% 2,719,217 $28,797 4.25% 2,704,802 $27,856 4.17% 2,554,482 $26,535 4.12% 2,697,098 $113,362 4.20% 2,561,884 $100,049 3.91%
                                                  
Cash and Due From Banks 53,174       50,981       51,832       53,848       52,344       52,453       51,222      
Allowance for Loan Losses (14,759)      (14,863)      (14,513)      (14,347)      (14,642)      (14,622)      (13,993)     
Other Assets 249,089       253,111       254,126       252,208       257,061       252,127       258,035      
                                                  
Total Assets$2,982,204      $2,959,310      $3,010,662      $2,996,511      $2,849,245      $2,987,056      $2,857,148      
                                                  
LIABILITIES:                                                 
Interest Bearing Deposits                                                 
NOW Accounts$755,625 $889 0.47%$749,678 $1,235 0.65%$832,982 $1,623 0.78%$884,277 $1,755 0.80%$739,225 $995 0.53%$805,134 $5,502 0.68%$781,026 $3,152 0.40%
Money Market Accounts 227,479  170 0.30  238,565  264 0.44  237,921  265 0.45  239,516  247 0.42  248,486  216 0.34  235,845  946 0.40  251,175  675 0.27 
Savings Accounts 372,518  46 0.05  372,593  46 0.05  371,716  46 0.05  364,783  44 0.05  356,723  44 0.05  370,430  182 0.05  351,341  172 0.05 
Time Deposits 108,407  52 0.19  111,447  51 0.18  115,442  54 0.19  118,839  53 0.18  123,193  57 0.18  113,499  210 0.19  131,860  244 0.18 
Total Interest Bearing Deposits 1,464,029  1,157 0.31% 1,472,283  1,596 0.43% 1,558,061  1,988 0.51% 1,607,415  2,099 0.53% 1,467,627  1,312 0.37% 1,524,908  6,840 0.45% 1,515,402  4,243 0.29%
                                                  
Short-Term Borrowings 7,448  16 0.87% 8,697  27 1.24% 9,625  31 1.30% 11,378  35 1.26% 15,424  53 1.36% 9,275  109 1.19% 10,992  110 0.99%
Subordinated Notes Payable 52,887  525 3.88  52,887  558 4.13  52,887  596 4.46  52,887  608 4.60  52,887  572 4.23  52,887  2,287 4.26  52,887  2,167 4.04 
Other Long-Term Borrowings 6,723  56 3.33  7,158  63 3.47  7,509  66 3.53  8,199  72 3.55  9,918  85 3.40  7,393  257 3.48  12,387  371 3.00 
                                                  
Total Interest Bearing Liabilities 1,531,087 $1,754 0.45% 1,541,025 $2,244 0.58% 1,628,082 $2,681 0.66% 1,679,879 $2,814 0.68% 1,545,856 $2,022 0.54% 1,594,463 $9,493 0.60% 1,591,668 $6,891 0.45%
                                                  
Noninterest Bearing Deposits 1,060,922       1,023,472       1,007,370       957,300       944,748       1,012,581       907,571      
Other Liabilities 63,291       74,540       61,611       52,070       56,445       62,940       63,045