Capital City Bank Group, Inc. Reports Third Quarter 2009 Results
TALLAHASSEE, Fla., Oct. 20, 2009 (GLOBE NEWSWIRE) -- Capital City Bank Group, Inc. (Nasdaq:CCBG) today reported a net loss of $1.5 million ($0.08 per diluted share) for the third quarter of 2009 compared to net income of $0.8 million ($0.04 per diluted share) for the second quarter of 2009 and $4.8 million ($0.29 per diluted share) for the third quarter of 2008. We reported a net loss of $0.1 million ($0.00 per diluted share) for the first nine months of 2009, compared to net income of $16.9 million ($0.99 per diluted share) for the same period of 2008.
The loss reported for the third quarter of 2009 reflects a loan loss provision of $12.3 million ($0.45 per diluted share) versus $8.4 million ($0.30 per diluted share) in the second quarter of 2009 and $10.4 million ($0.37 per diluted share) in the third quarter of 2008. Earnings for the third quarter of 2008 also included a $6.25 million gain ($0.22 per diluted share) from the sale of a portion of the bank's merchant services portfolio.
Year-to-date 2009 performance reflects a loan loss provision of $29.2 million ($1.05 per diluted share) and a special FDIC assessment of approximately $1.2 million ($0.04 per diluted share) recorded in the second quarter. Year-to-date earnings for 2008 reflect a loan loss provision of $20.0 million ($0.72 per diluted share), a $6.25 million gain ($0.22 per diluted share) from the sale of the bank's merchant services portfolio, and Visa related transactions totaling $3.5 million pre-tax ($0.13 per diluted share).
"In a continuing tough economic environment we have been effectively managing problem assets and moving many of them through the resolution phases. Of equal priority is maintaining our focus on growing the business, as evidenced by strong growth in the commercial mortgage and home equity portfolios and continuing increases in core deposits, all coming as a result of our consistent execution of relationship-based community banking," said William G. Smith, Jr., Chairman, President and Chief Executive Officer.
"We again set aside a substantial loan loss provision during the third quarter, which was clearly the main factor impacting our financial performance. The movement of a significant number of problem assets from the loan portfolio into the other real estate owned category indicates encouraging progress as we continue to move toward resolution and ultimate disposal of nonaccrual loans. Nonaccrual loans totaled $91.9 million at the end of the third quarter, a net decrease of $19.2 million from the prior linked quarter, reflective of a further slowdown in gross additions to non-accruing status and an increase in the migration of nonaccrual loans to the other real estate category, or to satisfactory restructuring.
"On the growth side of the business, we continue to capitalize and build on the key underlying value of our franchise with successful deposit-gathering. While public funds declined seasonally, as expected, we have enjoyed good core deposit growth in 2009 and our absolutely free checking products continue to be successful as both balances and the number of accounts consistently are growing quarter over quarter.
"Certificates of deposit balances are up as rate pressures from higher paying institutions have eased in most of our markets. The growth in money market accounts compared to the linked quarter reflects a successful test of a deposit promotion in our Macon, GA market, which we plan to expand during the fourth quarter to other markets," said Smith.
The Return on Average Assets was -0.24% and the Return on Average Equity was -2.15% for the third quarter of 2009. These metrics were 0.12% and 1.12% for the second quarter of 2009 and 0.76% and 6.43% for the third quarter of 2008, respectively.
For the first nine months of 2009, the Return on Average Assets was 0.00% and the Return on Average Equity was -0.03% compared to 0.87% and 7.53%, respectively, for the same period of 2008.
Discussion of Financial Condition
Average earning assets were $2.157 billion for the third quarter of 2009, a decrease of $17.9 million, or 0.8% from the second quarter of 2009, and an increase of $6.5 million, or 0.3% from the fourth quarter of 2008. The decrease from the second quarter is primarily attributable to a $7.4 million and $9.2 million decrease in the investment and loan portfolios, respectively. Compared to the fourth quarter of 2008, the increase in earning assets primarily reflects growth in the loan portfolio, partially offset by a reduction in investment securities and short-term investments. The current quarter decrease in the loan portfolio was offset by an increase in other real estate owned as we continue to move forward with the resolution of nonaccrual loans. The loan portfolio would have experienced a slight increase when compared to the prior quarter when adjusting for the nonaccrual loans transferred to other real estate owned, representing the fifth consecutive quarter of growth in the core loan portfolio. Loan growth remains strong in the commercial mortgage and home equity portfolios. Growth in these portfolios continued due to the efforts of our bankers to reach clients who are interested in moving or expanding their banking relationships.
At the end of the third quarter, nonperforming assets (including nonaccrual loans, restructured loans, and other real estate owned) totaled $144.4 million, a net increase of $.7 million, or 1% from the second quarter and $36.5 million, or 34% from the fourth quarter of 2008. Nonaccrual loans totaled $91.9 million at the end of the third quarter, a net decrease of $19.2 million from the prior linked quarter and $5.0 million from year-end 2008, reflective of a further slowdown in gross additions to non-accruing status and an increase in the migration of nonaccrual loans to the other real estate owned category. Quarter over quarter, other real estate owned properties increased $13.7 million and restructured loans increased by $6.2 million. Nonperforming assets represented 7.25% of loans and other real estate at the end of the third quarter compared to 7.19% at the prior quarter-end and 5.48% at year-end 2008.
Average total deposits were $1.950 billion for the third quarter, a decrease of $21.0 million, or 1.1%, from the second quarter and an increase of $4.3 million, or 0.2%, from the fourth quarter of 2008. On a linked quarter basis, the decrease in deposits reflects a decline in public funds attributable to seasonal run-off and the decision not to match competitors' rates. Core deposits continued to grow during the quarter and partially offset the public funds decline. The core deposit growth occurred primarily in the money market accounts and certificates of deposit. Additionally, our absolutely free checking product continues to be successful as both balances and the number of accounts continue to post growth quarter over quarter. Certificates of deposit balances have grown as rate pressures from higher paying institutions have eased in most of our markets. The growth in money market accounts compared to the linked quarter reflects a successful test of a deposit promotion in our Macon market, which we plan to expand during the fourth quarter to other markets.
Compared to year-end 2008, the increase in average deposits reflects higher core deposits and public funds. Core deposits have increased as discussed above and, while an influx of public funds was experienced late in the first quarter of 2009, there has been an easing in these balances, which began in late April. Additionally, money market balances declined during the first half of 2009, but experienced a partial offset in the third quarter as balances have increased slightly as discussed above. We continue to pursue prudent pricing discipline and to manage the mix of our deposits. Therefore, we are not attempting to compete with higher rate paying competitors for these deposits.
We maintained an average net overnight funds (deposits with banks plus Fed funds sold less Fed funds purchased) purchased position of $53.5 million during the third quarter of 2009 compared to an average net overnight funds purchased position of $49.8 million in the second quarter and an average overnight funds purchased position of $3.2 million at year-end 2008. The unfavorable variance in funds purchased position compared to the linked quarter is attributable to a decrease in deposits partially offset by a slight reduction in the loan and investment portfolios. The unfavorable variance from the fourth quarter of 2008 reflects growth in the loan portfolio, partially offset by growth in deposits and a decline in investment securities.
Equity capital was $268.4 million as of September 30, 2009, compared to $272.7 million as of June 30, 2009 and $278.8 million as of December 31, 2008. Our leverage ratio was 10.96%, 11.07%, and 11.51%, respectively, for the comparable periods. Further, our risk-adjusted capital ratio of 14.12% at September 30, 2009 exceeds the 8.0% minimum requirement and the 10% threshold to be designated as "well-capitalized" under the risk-based regulatory guidelines. At September 30, 2009, our tangible common equity ratio was 7.43%, compared to 7.47% at June 30, 2009 and 7.76% at December 31, 2008. During the first quarter 2009, we repurchased approximately 146,000 shares of our common stock at a weighted average stock price of $10.65; no shares were repurchased during the second and third quarters.
Discussion of Operating Results
Tax equivalent net interest income for the third quarter of 2009 was $27.1 million compared to $27.7 million for the second quarter of 2009 and $27.8 million for the third quarter of 2008. For the first nine months of 2009, tax equivalent net interest income totaled $82.4 million compared to $83.0 million in 2008.
The decrease in the net interest income on a linked quarter basis was partially due to the downward repricing of earning assets and a slight (3 basis points) increase in the costs of funds. One additional calendar day in the third quarter and a lower level of foregone interest on nonaccrual loans helped to offset the decline. The loan portfolio balance declined during the quarter and also continued to reprice lower without the offsetting benefit in funding costs. Compared to the linked quarter, the costs of funds increased primarily in interest bearing non-maturity deposits, reflecting a money market promotion launched during the third quarter.
The decline from the third quarter of 2008 reflects the downward repricing of earning assets, higher foregone interest on nonaccrual loans, and lower loan fees. Partially offsetting the decline was the lower costs of funds. We responded aggressively to the federal funds rate reductions, which began in September 2007. This, coupled with a favorable shift in mix of deposits, has resulted in a significantly lower cost of funds year over year.
The net interest margin of 4.99% declined 12 basis points over the linked quarter, attributable to lower earning asset yields and a higher cost of funds. As compared to the third quarter of 2008, the margin experienced a decline of two basis points reflecting compression in earning asset yields, partially offset by aggressive deposit repricing.
The slight decrease in net interest income for the first nine months of 2009 as compared to the same period in 2008 resulted from lower earning assets yields, higher foregone interest and lower loan fees, partially offset by the lower cost of funds.
The provision for loan losses for the third quarter was $12.3 million compared to $8.4 million for the second quarter of 2009 and $10.4 million for the third quarter of 2008. The higher loan loss provision compared to the prior quarter was driven by an increase in impaired loan reserves for newly identified impaired loans, and to a lesser extent devaluation in real estate collateral securing impaired loans, primarily related to land development. Year-to-date, our loan loss provision was $29.2 million compared to $20.0 million for the same period of 2008 with the increase generally reflecting weakened economic conditions and real estate market stress, including declining property values, primarily vacant land. Net charge-offs in the third quarter totaled $8.7 million (1.76% of average loans) compared to $6.8 million (1.39% of average loans) in the second quarter of 2009 and $2.4 million (.50% of average loans) in the third quarter of 2008. For the nine-month period of 2009, our net charge-offs totaled $20.8 million (1.41% of average loans), compared to $7.5 million (.53% of average loans) for the same period in 2008. At quarter-end, the allowance for loan losses was 2.32% of outstanding loans (net of overdrafts) and provided coverage of 41% of nonperforming loans.
Noninterest income for the third quarter of 2009 totaled $14.3 million compared to $14.6 million in the second quarter of 2009 and $20.2 million for the third quarter of 2008. Compared to the linked quarter, the $0.3 million, or 2.3%, decline was due to lower mortgage banking fees ($239,000) and merchant fees ($270,000). The decline in mortgage banking fees is attributable to a decline in our residential real estate loan pipeline which spiked mid-year due to a pick-up in refinancing activity. The lower level of merchant fees reflects a seasonal decline in processing volume for the sole remaining merchant in our merchant services portfolio. Partially offsetting the aforementioned unfavorable variances was higher retail brokerage fees ($141,000) driven by an increase in account activity. Compared to the prior year quarter, the $5.9 million, or 29.2%, decline primarily reflects a one-time $6.25 million pre-tax gain from a sale of a portion of the bank's merchant services portfolio in 2008. For the first nine months of 2009, as compared to same period of 2008, noninterest income decreased $10.7 million, or 20.0%, due to the one-time $6.25 million pre-tax gain from the bank's merchant services portfolio sale, a $2.4 million pre-tax gain from the redemption of Visa shares realized in the first quarter of 2008, and an unfavorable variance in merchant fees of $2.9 million related to the aforementioned merchant services portfolio sale.
Noninterest expense totaled $31.6 million for the third quarter of 2009 compared to $32.9 million in the second quarter of 2009 and $29.9 million for the third quarter of 2008. Compared to the linked quarter, the $1.3 million, or 4.0%, favorable variance was due to lower compensation expense ($389,000) and FDIC insurance premium expense ($1.2 million). The lower compensation expense was due to lower pension expense and the lower FDIC insurance expense reflects the impact of the $1.2 million special assessment recorded in the second quarter. These favorable variances were partially offset by a higher level of other real estate owned expense ($300,000) and legal fees ($221,000), both attributable to increased collection and foreclosure activity. Compared to prior year quarter, the $1.7 million, or 5.7%, increase primarily reflects an increase in other real estate owned expense ($1.0 million) and legal expense ($517,000) also attributable to the increase in collection and foreclosure activity. For the first nine months of 2009, as compared to the same period of 2008, noninterest expense increased $6.3 million, or 7.0%, due to higher other real estate owned expense ($2.9 million), legal expense ($1.2 million), pension expense ($2.2 million), and FDIC insurance premium expense ($3.4 million), partially offset by lower expense for merchant fees ($2.5 million), intangible amortization ($1.3 million), and furniture/fixtures depreciation and maintenance ($632,000). The unfavorable variance was also impacted by the reversal of a portion ($1.1 million) of our Visa litigation accrual in the first quarter of 2008, which had the effect of reducing noninterest expense.
About Capital City Bank Group, Inc.
Capital City Bank Group, Inc. (Nasdaq: CCBG) is one of the largest publicly traded financial services companies headquartered in Florida and has approximately $2.5 billion in assets. The Company provides a full range of banking services, including traditional deposit and credit services, asset management, trust, mortgage banking, merchant services, bankcards, data processing and securities brokerage services. The Company's bank subsidiary, Capital City Bank, was founded in 1895 and now has 69 banking offices and 80 ATMs in Florida, Georgia and Alabama. For more information about Capital City Bank Group, Inc., visit www.ccbg.com.
FORWARD-LOOKING STATEMENTS
Forward-looking statements in this Press Release are based on current plans and expectations that are subject to uncertainties and risks, which could cause the Company's future results to differ materially. The following factors, among others, could cause the Company's actual results to differ: the frequency and magnitude of foreclosure of the Company's loans; the effects of the Company's lack of a diversified loan portfolio, including the risks of geographic and industry concentrations; the accuracy of the Company's financial statement estimates and assumptions, including the estimate for the Company's loan loss provision; the Company's ability to integrate acquisitions; the strength of the U.S. economy and the local economies where the Company conducts operations; harsh weather conditions; fluctuations in inflation, interest rates, or monetary policies; changes in the stock market and other capital and real estate markets; legislative or regulatory changes; customer acceptance of third-party products and services; increased competition and its effect on pricing; technological changes; the effects of security breaches and computer viruses that may affect the Company's computer systems; changes in consumer spending and savings habits; the Company's growth and profitability; changes in accounting; and the Company's ability to manage the risks involved in the foregoing. Additional factors can be found in the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2008, and the Company's other filings with the SEC, which are available at the SEC's internet site (http://www.sec.gov). Forward-looking statements in this Press Release speak only as of the date of the Press Release, and the Company assumes no obligation to update forward-looking statements or the reasons why actual results could differ.
EARNINGS HIGHLIGHTS
----------------------------------------------------------------------
Three Months Ended Nine Months Ended
------------------------- -----------------
(Dollars in thousands, Sep 30, Jun 30, Sep 30, Sep 30, Sep 30,
except per share data) 2009 2009 2008 2009 2008
----------------------------------------------------------------------
EARNINGS
Net Income $-1,488 $ 774 $ 4,838 $ -64 $16,928
Diluted Earnings Per
Common Share $ -0.08 $ 0.04 $ 0.29 $ 0.00 $ 0.99
----------------------------------------------------------------------
PERFORMANCE
Return on Average Equity -2.15% 1.12% 6.34% -0.03% 7.53%
Return on Average Assets -0.24% 0.12% 0.76% 0.00% 0.87%
Net Interest Margin 4.99% 5.11% 5.01% 5.09% 4.87%
Noninterest Income as % of
Operating Revenue 35.01% 35.07% 42.64% 34.75% 39.84%
Efficiency Ratio 73.86% 75.44% 59.27% 74.82% 62.98%
----------------------------------------------------------------------
CAPITAL ADEQUACY
Tier 1 Capital Ratio 12.76% 12.85% 13.54% 12.76% 13.54%
Total Capital Ratio 14.12% 14.20% 15.15% 14.12% 15.15%
Tangible Capital Ratio 7.43% 7.47% 8.67% 7.43% 8.67%
Leverage Ratio 10.96% 11.07% 11.21% 10.96% 11.21%
Equity to Assets 10.77% 10.80% 12.17% 10.77% 12.17%
----------------------------------------------------------------------
ASSET QUALITY
Allowance as % of
Non-Performing Loans 40.90% 33.71% 48.55% 40.90% 48.55%
Allowance as a % of Loans 2.32% 2.12% 1.59% 2.32% 1.59%
Net Charge-Offs as % of
Average Loans 1.76% 1.39% 0.50% 1.41% 0.53%
Nonperforming Assets as %
of Loans and ORE 7.25% 7.19% 3.51% 7.25% 3.51%
----------------------------------------------------------------------
STOCK PERFORMANCE
High $ 17.10 $ 17.35 $ 34.50 $ 27.31 $ 34.50
Low $ 13.92 $ 11.01 $ 19.20 $ 9.50 $ 19.20
Close $ 14.20 $ 16.85 $ 31.35 $ 14.20 $ 31.35
Average Daily Trading
Volume 33,823 40,130 45,717 44,127 37,902
----------------------------------------------------------------------
CAPITAL CITY BANK GROUP, INC.
CONSOLIDATED STATEMENT OF INCOME
Unaudited
---------------------------------------------------------------------
2009 2009 2009 2008 2008
(Dollars in thousands, Third Second First Fourth Third
except per share data) Quarter Quarter Quarter Quarter Quarter
---------------------------------------------------------------------
INTEREST INCOME
Interest and Fees on
Loans $29,463 $29,742 $29,537 $31,570 $32,435
Investment Securities 1,323 1,437 1,513 1,627 1,744
Funds Sold 1 1 3 32 475
---------------------------------------------------------------------
Total Interest Income 30,787 31,180 31,053 33,229 34,654
---------------------------------------------------------------------
INTEREST EXPENSE
Deposits 2,626 2,500 2,495 3,848 5,815
Short-Term Borrowings 113 88 68 110 230
Subordinated Notes Payable 936 931 927 937 936
Other Long-Term Borrowings 560 566 568 587 488
---------------------------------------------------------------------
Total Interest Expense 4,235 4,085 4,058 5,482 7,469
---------------------------------------------------------------------
Net Interest Income 26,552 27,095 26,995 27,747 27,185
Provision for Loan Losses 12,347 8,426 8,410 12,497 10,425
---------------------------------------------------------------------
Net Interest Income after
Provision for Loan Losses 14,205 18,669 18,585 15,250 16,760
---------------------------------------------------------------------
NONINTEREST INCOME
Service Charges on Deposit
Accounts 7,099 7,162 6,698 6,807 7,110
Data Processing Fees 914 896 870 937 873
Asset Management Fees 960 930 970 935 1,025
Retail Brokerage Fees 765 625 493 630 565
Gain on Sale of Investment
Securities 4 6 -- 3 27
Mortgage Banking Revenues 663 902 584 292 331
Merchant Fees 393 663 958 650 616
Interchange Fees 1,129 1,118 1,056 1,007 1,073
Gain on Sale of Portion of
Merchant Services
Portfolio -- -- -- -- 6,250
ATM/Debit Card Fees 876 884 863 744 742
Other 1,501 1,448 1,550 1,306 1,600
---------------------------------------------------------------------
Total Noninterest Income 14,304 14,634 14,042 13,311 20,212
---------------------------------------------------------------------
NONINTEREST EXPENSE
Salaries and Associate
Benefits 15,660 16,049 17,237 15,492 15,417
Occupancy, Net 2,455 2,540 2,345 2,503 2,373
Furniture and Equipment 2,193 2,304 2,338 2,368 2,369
Intangible Amortization 1,011 1,010 1,011 1,308 1,459
Other 10,296 11,027 9,326 9,331 8,298
---------------------------------------------------------------------
Total Noninterest Expense 31,615 32,930 32,257 31,002 29,916
---------------------------------------------------------------------
OPERATING PROFIT (3,106) 373 370 (2,441) 7,056
Provision for Income Taxes (1,618) (401) (280) (738) 2,218
---------------------------------------------------------------------
NET INCOME $(1,488) $ 774 $ 650 $(1,703) $ 4,838
---------------------------------------------------------------------
PER SHARE DATA
Basic Earnings $ (0.08) $ 0.04 $ 0.04 $ (0.10) $ 0.29
Diluted Earnings $ (0.08) $ 0.04 $ 0.04 $ (0.10) $ 0.29
Cash Dividends 0.190 0.190 0.190 0.190 0.185
AVERAGE SHARES
Basic 17,024 17,010 17,109 17,126 17,124
Diluted 17,025 17,010 17,131 17,135 17,128
---------------------------------------------------------------------
---------------------------------------------------------------------
Nine Months Ended
September 30
(Dollars in thousands, except per share data) 2009 2008
---------------------------------------------------------------------
INTEREST INCOME
Interest and Fees on Loans $ 88,742 $101,112
Investment Securities 4,273 5,447
Funds Sold 5 3,078
---------------------------------------------------------------------
Total Interest Income 93,020 109,637
---------------------------------------------------------------------
INTEREST EXPENSE
Deposits 7,621 23,458
Short-Term Borrowings 269 1,047
Subordinated Notes Payable 2,794 2,798
Other Long-Term Borrowings 1,694 1,215
---------------------------------------------------------------------
Total Interest Expense 12,378 28,518
---------------------------------------------------------------------
Net Interest Income 80,642 81,119
Provision for Loan Losses 29,183 19,999
---------------------------------------------------------------------
Net Interest Income after Provision for Loan Losses 51,459 61,120
---------------------------------------------------------------------
NONINTEREST INCOME
Service Charges on Deposit Accounts 20,959 20,935
Data Processing Fees 2,680 2,498
Asset Management Fees 2,860 3,300
Retail Brokerage Fees 1,883 1,769
Gain on Sale of Investment Securities 10 122
Mortgage Banking Revenues 2,149 1,331
Merchant Fees 2,014 4,898
Interchange Fees 3,303 3,158
Gain on Sale of Portion of Merchant Services
Portfolio -- 6,250
ATM/Debit Card Fees 2,623 2,244
Other 4,499 7,224
---------------------------------------------------------------------
Total Noninterest Income 42,980 53,729
---------------------------------------------------------------------
NONINTEREST EXPENSE
Salaries and Associate Benefits 48,946 46,339
Occupancy, Net 7,340 7,226
Furniture and Equipment 6,835 7,534
Intangible Amortization 3,032 4,377
Other 30,649 24,994
---------------------------------------------------------------------
Total Noninterest Expense 96,802 90,470
---------------------------------------------------------------------
OPERATING PROFIT (2,363) 24,379
Provision for Income Taxes (2,299) 7,451
---------------------------------------------------------------------
NET INCOME $ (64) $ 16,928
---------------------------------------------------------------------
PER SHARE DATA
Basic Earnings $ (0.00) $ 0.99
Diluted Earnings $ (0.00) $ 0.99
Cash Dividends 0.570 0.555
AVERAGE SHARES
Basic 17,047 17,147
Diluted 17,048 17,149
---------------------------------------------------------------------
CAPITAL CITY BANK GROUP, INC.
CONSOLIDATED STATEMENT OF FINANCIAL CONDITION
Unaudited
---------------------------------------------------------------------
(Dollars in
thousands, 2009 2009 2009 2008 2008
except per Third Second First Fourth Third
share data) Quarter Quarter Quarter Quarter Quarter
---------------------------------------------------------------------
ASSETS
Cash and Due
From Banks $ 79,275 $ 92,394 $ 81,317 $ 88,143 $ 71,062
Funds Sold and
Interest
Bearing
Deposits 828 2,016 4,241 6,806 27,419
---------------------------------------------------------------------
Total Cash and
Cash
Equivalents 80,103 94,410 85,558 94,949 98,481
Investment
Securities,
Available-for-
Sale 183,944 194,002 195,767 191,569 193,978
Loans, Net of
Unearned
Interest
Commercial,
Financial, &
Agricultural 203,813 201,589 202,038 206,230 189,676
Real Estate -
Construction 128,476 153,507 154,102 141,973 148,160
Real Estate -
Commercial 704,595 686,420 673,066 656,959 639,443
Real Estate -
Residential 424,715 447,652 464,358 468,399 473,962
Real Estate -
Home Equity 243,808 235,473 223,505 218,500 212,118
Consumer 241,672 241,467 243,280 246,973 252,743
Other Loans 7,790 7,933 8,068 15,838 7,378
Overdrafts 3,163 3,022 3,195 2,925 3,749
---------------------------------------------------------------------
Total Loans,
Net of
Unearned
Interest 1,958,032 1,977,063 1,971,612 1,957,797 1,927,229
Allowance for
Loan Losses (45,401) (41,782) (40,172) (37,004) (30,544)
---------------------------------------------------------------------
Loans, Net 1,912,631 1,935,281 1,931,440 1,920,793 1,896,685
Premises and
Equipment, Net 111,797 109,050 107,259 106,433 104,806
Intangible
Assets 89,851 90,862 91,872 92,883 94,192
Other Assets 113,611 102,234 87,483 82,072 66,308
---------------------------------------------------------------------
Total Other
Assets 315,259 302,146 286,614 281,388 265,306
---------------------------------------------------------------------
Total Assets $2,491,937 $2,525,839 $2,499,379 $2,488,699 $2,454,450
---------------------------------------------------------------------
LIABILITIES
Deposits:
Noninterest
Bearing
Deposits $ 397,943 $ 424,125 $ 413,608 $ 419,696 $ 382,878
NOW Accounts 687,679 733,526 726,069 758,976 698,509
Money Market
Accounts 301,662 300,683 312,541 324,646 368,453
Regular
Savings
Accounts 122,040 123,257 121,245 115,261 116,858
Certificates
of Deposit 440,666 424,339 416,326 373,595 396,086
---------------------------------------------------------------------
Total Deposits 1,949,990 2,005,930 1,989,789 1,992,174 1,962,784
Short-Term
Borrowings 103,711 73,989 68,193 62,044 47,069
Subordinated
Notes Payable 62,887 62,887 62,887 62,887 62,887
Other Long-Term
Borrowings 50,665 52,354 53,448 51,470 53,074
Other
Liabilities 56,269 57,973 49,518 41,294 29,841
---------------------------------------------------------------------
Total
Liabilities 2,223,522 2,253,133 2,223,835 2,209,869 2,155,655
---------------------------------------------------------------------
SHAREOWNERS'
EQUITY
Common Stock 170 170 170 171 171
Additional
Paid-In
Capital 36,065 35,698 35,841 36,783 36,681
Retained
Earnings 253,104 257,828 260,287 262,890 267,853
Accumulated
Other
Comprehensive
Loss, Net of
Tax (20,924) (20,990) (20,754) (21,014) (5,910)
---------------------------------------------------------------------
Total
Shareowners'
Equity 268,415 272,706 275,544 278,830 298,795
---------------------------------------------------------------------
Total
Liabilities
and
Shareowners'
Equity $2,491,937 $2,525,839 $2,499,379 $2,488,699 $2,454,450
---------------------------------------------------------------------
OTHER BALANCE
SHEET DATA
Earning Assets $2,142,804 $2,173,081 $2,171,620 $2,156,172 $2,148,626
Intangible
Assets
Goodwill 84,811 84,811 84,811 84,811 84,811
Deposit Base 4,196 5,159 6,121 7,084 8,345
Other 844 892 940 988 1,036
Interest
Bearing
Liabilities 1,769,310 1,771,035 1,760,709 1,748,879 1,742,936
---------------------------------------------------------------------
Book Value Per
Diluted Share $ 15.76 $ 16.03 $ 16.18 $ 16.27 $ 17.45
Tangible Book
Value Per
Diluted Share 10.48 10.70 10.80 10.85 11.94
---------------------------------------------------------------------
Actual Basic
Shares
Outstanding 17,032 17,010 17,010 17,127 17,125
Actual Diluted
Shares
Outstanding 17,033 17,010 17,031 17,136 17,129
---------------------------------------------------------------------
CAPITAL CITY BANK GROUP, INC.
ALLOWANCE FOR LOAN LOSSES
AND NONPERFORMING ASSETS
Unaudited
---------------------------------------------------------------------
2009 2009 2009 2008 2008
(Dollars in Third Second First Fourth Third
thousands) Quarter Quarter Quarter Quarter Quarter
---------------------------------------------------------------------
ALLOWANCE FOR LOAN
LOSSES
Balance at Beginning
of Period $ 41,782 $ 40,172 $ 37,004 $ 30,544 $ 22,518
Provision for Loan
Losses 12,347 8,426 8,410 12,497 10,425
Net Charge-Offs 8,728 6,816 5,242 6,037 2,399
---------------------------------------------------------------------
Balance at End of
Period $ 45,401 $ 41,782 $ 40,172 $ 37,004 $ 30,544
---------------------------------------------------------------------
As a % of Loans 2.32% 2.12% 2.04% 1.89% 1.59%
As a % of
Nonperforming Loans 40.90% 33.71% 34.82% 37.52% 48.55%
As a % of
Nonperforming Assets 31.45% 29.09% 31.69% 34.31% 45.10%
---------------------------------------------------------------------
CHARGE-OFFS
Commercial, Financial
and Agricultural $ 633 $ 388 $ 857 $ 331 $ 275
Real Estate -
Construction 2,315 3,356 320 1,774 77
Real Estate -
Commercial 1,707 123 1,002 293 (35)
Real Estate -
Residential 3,394 2,379 1,975 2,264 797
Consumer 1,324 1,145 2,117 1,993 1,797
---------------------------------------------------------------------
Total Charge-Offs $ 9,373 $ 7,391 $ 6,271 $ 6,655 $ 2,911
---------------------------------------------------------------------
RECOVERIES
Commercial, Financial
and Agricultural $ 64 $ 84 $ 74 $ 68 $ 68
Real Estate -
Construction 150 -- 385 -- 4
Real Estate -
Commercial 8 1 -- -- 1
Real Estate -
Residential 92 51 58 128 6
Consumer 331 439 512 422 433
---------------------------------------------------------------------
Total Recoveries $ 645 $ 575 $ 1,029 $ 618 $ 512
---------------------------------------------------------------------
NET CHARGE-OFFS $ 8,728 $ 6,816 $ 5,242 $ 6,037 $ 2,399
---------------------------------------------------------------------
Net Charge-Offs as a
% of Average
Loans(1) 1.76% 1.39% 1.08% 1.24% 0.50%
---------------------------------------------------------------------
RISK ELEMENT ASSETS
Nonaccruing Loans $ 91,880 $111,039 $110,200 $ 96,876 $ 61,509
Restructured Loans 19,121 12,916 5,157 1,744 1,403
---------------------------------------------------------------------
Total Nonperforming
Loans 111,001 123,955 115,357 98,620 62,912
Other Real Estate 33,371 19,671 11,425 9,222 4,813
---------------------------------------------------------------------
Total Nonperforming
Assets $144,372 $143,626 $126,783 $107,842 $ 67,725
---------------------------------------------------------------------
Past Due Loans 90
Days or More $ 486 $ -- $ -- $ 88 $ 50
---------------------------------------------------------------------
Nonperforming Loans
as a % of Loans 5.67% 6.27% 5.85% 5.04% 3.26%
Nonperforming Assets
as a % of Loans and
Other Real Estate 7.25% 7.19% 6.39% 5.48% 3.51%
Nonperforming Assets
as a % of Capital(2) 46.01% 45.67% 40.16% 34.15% 20.56%
---------------------------------------------------------------------
(1) Annualized
(2) Capital includes allowance for loan losses.
CAPITAL CITY BANK GROUP, INC.
AVERAGE BALANCE AND INTEREST RATES(1)
Unaudited
----------------------------------------------------------------------
Third Quarter 2009 Second Quarter 2009
---------------------------- ----------------------------
(Dollars in Average Average Average Average
thousands) Balance Interest Rate Balance Interest Rate
---------------------- -------- ------- ---------- -------- -------
ASSETS:
Loans, Net
of Unearned
Interest $1,964,984 29,695 6.00% $1,974,197 29,954 6.09%
Investment
Securities
Taxable
Investment
Securities 81,777 682 3.32% 89,574 742 3.31%
Tax-Exempt
Investment
Securities 107,307 985 3.67% 106,869 1,067 4.00%
----------------------------------------------------------------------
Total
Investment
Securities 189,084 1,667 3.52% 196,443 1,809 3.68%
Funds Sold 3,294 1 0.11% 4,641 1 0.10%
----------------------------------------------------------------------
Total
Earning
Assets 2,157,362 $ 31,363 5.77% 2,175,281 $ 31,764 5.86%
----------------- -----------------
Cash and Due
From Banks 76,622 81,368
Allowance
for Loan
Losses (42,774) (41,978)
Other Assets 306,759 291,681
---------------------- ----------
Total
Assets $2,497,969 $2,506,352
---------------------- ----------
LIABILITIES:
Interest
Bearing
Deposits
NOW
Accounts $ 678,292 $ 257 0.15% 709,039 $ 249 0.14%
Money Market
Accounts 301,230 281 0.37% 298,007 192 0.26%
Savings
Accounts 122,934 15 0.05% 123,034 15 0.05%
Time
Deposits 430,944 2,073 1.91% 417,545 2,044 1.96%
----------------------------------------------------------------------
Total
Interest
Bearing
Deposits 1,533,400 2,626 0.68% 1,547,625 2,500 0.65%
Short-Term
Borrowings 97,305 113 0.45% 87,768 88 0.40%
Subordinated
Notes
Payable 62,887 936 5.83% 62,887 931 5.86%
Other
Long-Term
Borrowings 51,906 560 4.28% 52,775 566 4.30%
----------------------------------------------------------------------
Total
Interest
Bearing
Liabilities 1,745,498 $ 4,235 0.96% 1,751,055 $ 4,085 0.94%
----------------- -----------------
Noninterest
Bearing
Deposits 416,770 423,566
Other
Liabilities 60,674 54,617
---------------------- ----------
Total
Liabilities 2,222,942 2,229,238
SHAREOWNERS'
EQUITY: $ 275,027 $ 277,114
---------------------- ----------
Total
Liabilities
and Share-
owners'
Equity $2,497,969 $2,506,352
---------------------- ----------
Interest
Rate
Spread $ 27,128 4.81% $ 27,679 4.92%
---------------------------------------- -----------------
Interest
Income and
Rate
Earned(1) $ 31,363 5.77% $ 31,764 5.86%
Interest
Expense and
Rate
Paid(2) 4,235 0.78% 4,085 0.75%
---------------------------------------- -----------------
Net Interest
Margin $ 27,128 4.99% $ 27,679 5.11%
---------------------------------------- -----------------
----------------------------------------------------------------------
First Quarter 2009
----------------------------
Average Average
(Dollars in thousands) Balance Interest Rate
---------- -------- -------
ASSETS:
Loans, Net of Unearned Interest $1,964,086 29,724 6.14%
Investment Securities
Taxable Investment Securities 90,927 776 3.43%
Tax-Exempt Investment Securities 101,108 1,133 4.48%
----------------------------------------------------------------------
Total Investment Securities 192,035 1,909 3.98%
Funds Sold 10,116 3 0.13%
----------------------------------------------------------------------
Total Earning Assets 2,166,237 $ 31,636 5.92%
-----------------
Cash and Due From Banks 76,826
Allowance for Loan Losses (38,007)
Other Assets 281,869
----------
Total Assets $2,486,925
----------
LIABILITIES:
Interest Bearing Deposits
NOW Accounts $ 719,265 $ 225 0.13%
Money Market Accounts 321,562 190 0.24%
Savings Accounts 118,142 14 0.05%
Time Deposits 392,006 2,066 2.14%
----------------------------------------------------------------------
Total Interest Bearing Deposits 1,550,975 2,495 0.65%
Short-Term Borrowings 85,318 68 0.32%
Subordinated Notes Payable 62,887 927 5.89%
Other Long-Term Borrowings 53,221 568 4.33%
----------------------------------------------------------------------
Total Interest Bearing Liabilities 1,752,401 $ 4,058 0.94%
-----------------
Noninterest Bearing Deposits 406,380
Other Liabilities 46,510
----------------------------------------------------
Total Liabilities 2,205,291
SHAREOWNERS' EQUITY: $ 281,634
----------------------------------------------------
Total Liabilities and Shareowners' Equity $2,486,925
----------------------------------------------------
Interest Rate Spread $ 27,578 4.98%
-------------------- -----------------
Interest Income and Rate Earned(1) $ 31,636 5.92%
Interest Expense and Rate Paid(2) 4,058 0.76%
--------------------------------- -----------------
Net Interest Margin $ 27,578 5.16%
------------------- -----------------
(1) Interest and average rates are calculated on a tax-equivalent
basis using the 35% Federal tax rate.
(2) Rate calculated based on average earning assets.
CAPITAL CITY BANK GROUP, INC.
AVERAGE BALANCE AND INTEREST RATES(1)
Unaudited
----------------------------------------------------------------------
Fourth Quarter 2008 Third Quarter 2008
----------------------------------------------------------
(Dollars in Average Average Average Average
thousands) Balance Interest Rate Balance Interest Rate
---------------------- -------- ------- ---------- -------- -------
ASSETS:
Loans, Net
of Unearned
Interest $1,940,083 31,772 6.52% $1,915,008 32,622 6.78%
Investment
Securities
Taxable
Investment
Securities 90,296 813 3.59% 93,723 940 3.99%
Tax-Exempt
Investment
Securities 103,817 1,252 4.82% 98,966 1,234 4.99%
----------------------------------------------------------------------
Total
Investment
Securities 194,113 2,065 4.25% 192,689 2,174 4.50%
Funds Sold 16,645 32 0.74% 99,973 475 1.86%
----------------------------------------------------------------------
Total
Earning
Assets 2,150,841 $ 33,869 6.27% 2,207,670 $ 35,271 6.36%
----------------- -----------------
Cash and Due
From Banks 76,027 77,309
Allowance
for Loan
Losses (30,347) (22,851)
Other Assets 266,797 266,510
---------------------- ----------
Total
Assets $2,463,318 $2,528,638
---------------------- ----------
LIABILITIES:
Interest
Bearing
Deposits
NOW
Accounts $ 684,246 $ 636 0.37% $ 727,754 $ 1,443 0.79%
Money Market
Accounts 360,940 716 0.79% 369,544 1,118 1.20%
Savings
Accounts 117,311 28 0.09% 117,970 30 0.10%
Time
Deposits 379,266 2,468 2.59% 410,101 3,224 3.13%
----------------------------------------------------------------------
Total
Interest
Bearing
Deposits 1,541,763 3,848 0.99% 1,625,369 5,815 1.42%
Short-Term
Borrowings 69,079 110 0.62% 51,738 230 1.76%
Subordinated
Notes
Payable 62,887 937 5.83% 62,887 936 5.83%
Other
Long-Term
Borrowings 53,261 587 4.39% 43,237 488 4.48%
----------------------------------------------------------------------
Total
Interest
Bearing
Liabilities 1,726,990 $ 5,482 1.26% 1,783,231 $ 7,469 1.67%
----------------- -----------------
Noninterest
Bearing
Deposits 404,103 405,314
Other
Liabilities 29,998 36,498
---------------------- ----------
Total
Liabilities 2,161,091 2,225,043
SHAREOWNERS'
EQUITY: $ 302,227 $ 303,595
---------------------- ----------
Total
Liabilities
and Share-
owners'
Equity $2,463,318 $2,528,638
---------------------- ----------
Interest
Rate Spread $ 28,387 5.01% $ 27,802 4.69%
---------------------------------------- -----------------
Interest
Income and
Rate
Earned(1) $ 33,869 6.27% $ 35,271 6.36%
Interest
Expense and
Rate
Paid(2) 5,482 1.01% 7,469 1.35%
---------------------------------------- -----------------
Net Interest
Margin $ 28,387 5.26% $ 27,802 5.01%
---------------------------------------- -----------------
(1) Interest and average rates are calculated on a tax-equivalent
basis using the 35% Federal tax rate.
(2) Rate calculated based on average earning assets.
CAPITAL CITY BANK GROUP, INC.
AVERAGE BALANCE AND INTEREST RATES(1)
Unaudited
----------------------------------------------------------------------
September 2009 YTD September 2008 YTD
----------------------------------------------------------
(Dollars in Average Average Average Average
thousands) Balance Interest Rate Balance Interest Rate
---------------------- -------- -------- ---------- -------- --------
ASSETS:
Loans, Net
of Unearned
Interest $1,967,759 $ 89,373 6.07% $1,911,142 101,684 7.11%
Investment
Securities
Taxable
Investment
Securities 87,393 2,200 3.35% 94,106 3,076 4.35%
Tax-Exempt
Investment
Securities 105,117 3,185 4.04% 94,725 3,641 5.13%
----------------------------------------------------------------------
Total
Investment
Securities 192,510 5,385 3.73% 188,831 6,717 4.74%
Funds Sold 5,992 5 0.12% 170,831 3,077 2.37%
----------------------------------------------------------------------
Total
Earning
Assets 2,166,261 $ 94,763 5.85% 2,270,804 $111,478 6.55%
----------------- -----------------
Cash and Due
From Banks 78,271 84,552
Allowance
for Loan
Losses (40,937) (20,554)
Other Assets 293,528 268,220
---------------------- ----------
Total
Assets $2,497,123 $2,603,022
---------------------- ----------
LIABILITIES:
Interest
Bearing
Deposits
NOW
Accounts $ 702,048 $ 731 0.14% $ 763,164 $ 6,818 1.19%
Money Market
Accounts 306,858 663 0.29% 378,756 4,526 1.60%
Savings
Accounts 121,389 44 0.05% 116,112 93 0.11%
Time
Deposits 413,641 6,183 2.00% 440,019 12,021 3.65%
----------------------------------------------------------------------
Total
Interest
Bearing
Deposits 1,543,936 7,621 0.66% 1,698,051 23,458 1.85%
Short-Term
Borrowings 90,174 269 0.39% 58,530 1,047 2.38%
Subordinated
Notes
Payable 62,887 2,794 5.86% 62,887 2,798 5.85%
Other
Long-Term
Borrowings 52,629 1,694 4.30% 35,194 1,215 4.61%
----------------------------------------------------------------------
Total
Interest
Bearing
Liabilities 1,749,626 $ 12,378 0.95% 1,854,662 $ 28,518 2.05%
----------------- -----------------
Noninterest
Bearing
Deposits 415,610 408,372
Other
Liabilities 53,986 39,547
---------------------- ----------
Total
Liabilities 2,219,222 2,302,581
SHAREOWNERS'
EQUITY: $ 277,901 $ 300,441
---------------------- ----------
Total
Liabilities
and Share-
owners'
Equity $2,497,123 $2,603,022
---------------------- ----------
Interest
Rate Spread $ 82,385 4.90% $ 82,960 4.50%
---------------------------------------- -----------------
Interest
Income and
Rate
Earned(1) $ 94,763 5.85% $111,478 6.55%
Interest
Expense and
Rate
Paid(2) 12,378 0.76% 28,518 1.68%
---------------------------------------- -----------------
Net Interest
Margin $ 82,385 5.09% $ 82,960 4.87%
---------------------------------------- -----------------
(1) Interest and average rates are calculated on a tax-equivalent
basis using the 35% Federal tax rate.
(2) Rate calculated based on average earning assets.
CONTACT: Capital City Bank Group, Inc.
J. Kimbrough Davis, Executive Vice President and Chief
Financial Officer
850.402.7820
Released October 20, 2009