Capital City Bank Group, Inc. Reports Third Quarter Earnings of $7.2 Million, or $0.41 per Diluted Share
TALLAHASSEE, Fla., Oct. 23, 2007 (PRIME NEWSWIRE) -- Capital City Bank Group, Inc. (Nasdaq:CCBG) today reported net income for the third quarter of 2007 totaling $7.2 million ($0.41 per diluted share) compared to $8.7 million ($0.47 per diluted share) in the third quarter of 2006, a decline of 17.4% (12.8% on a per-share basis). Earnings per share reflect the company's repurchasing of 250,553 common shares during the third quarter of 2007 and the repurchase of a total of 980,816 common shares since September 30, 2006.
The decrease in net income compared to third quarter 2006 was attributable to a reduction in net interest income of $2.3 million and a $0.8 million increase in the loan loss provision, partially offset by an increase in noninterest income of $0.3 million, a decrease in noninterest expense of $0.5 million, and a reduction in income taxes of $0.8 million. The decrease in net interest income reflects a 31 basis point increase in funding costs. The higher loan loss provision is reflective of a higher level of required reserves for impaired loans. The 2.0% increase in noninterest income is due to increases in retail brokerage fees and interchange fees. The 1.7% decline in noninterest expense primarily reflects lower compensation and advertising expense.
The Return on Average Assets was 1.15% and the Return on Average Equity was 9.44%, compared to 1.35% and 10.83%, respectively, for the comparable period in 2006.
"Our net interest margin contracted during the third quarter as our funding costs rose. We added about twice as much to our provision for loan losses during the third quarter than in the third quarter of 2006. Consistent with trends across the community banking industry, these two factors were the primary drivers of our recent financial performance," said William G. Smith, Jr. Chairman, President, & CEO of Capital City Bank Group. "While these third-quarter results are clearly not where we want them to be, our net interest margin continues to compare very favorably with peer statistics, as do our level of reserve coverage of nonperforming loans (145%) and our ratio of charge-offs to total loans (.21%). We continued to be a consistent repurchaser of our own stock, as we believe this is a prudent deployment of capital and a rational strategy for creating additional shareowner value given the nature of the current operating environment.
"As we move through the balance of the year, we see the local economic forces remaining essentially unchanged. While the geographic markets in which we are located are clearly not experiencing real estate related slowdowns of the depth and intensity found across southern Florida, we do anticipate our real estate loan portfolios to be impacted by the overall slowdown in the real estate markets. We believe our overall approach to credit quality is sound and, given the current economic environment, our losses will remain at manageable levels."
Tax equivalent net interest income in the third quarter decreased $2.2 million, or 7.2%, compared to the third quarter of 2006, due to an increase in funding costs driven by a higher average rate paid on certificates of deposit and an unfavorable shift in our deposit mix. The net interest margin decreased 18 basis points from the third quarter of 2006 to a level of 5.27%. The earning asset yield improved by 13 basis points, but was more than offset by a 31 basis point increase in the cost of funds.
The provision for loan losses of $1.6 million for the quarter was $841,000 higher than the third quarter of 2006 primarily attributable to a higher level of required reserves for impaired loans. Net charge-offs totaled $1.0 million, or .21%, of average loans for the quarter compared to $664,000, or .13%, for the third quarter of 2006. At quarter-end, the allowance for loan losses was .95% of outstanding loans (net of overdrafts) and provided coverage of 145% of nonperforming loans.
Noninterest income increased $287,000, or 2.0%, from the third quarter of 2006 primarily due to higher retail brokerage fees and interchange fees. The increase in retail brokerage fees was due to higher activity by clients and improvement in the internal referral system for this service. Interchange fees was driven higher primarily due to an increase in debit card activity.
Noninterest expense decreased by $503,000, or 1.7% compared to the third quarter of 2006. Lower expense for compensation ($182,000) and advertising ($236,000) were the primary reasons for the decrease. The decline in compensation reflects a lower level of incentive plan expense. The decline in advertising is reflective of steps taken by management to improve expense management controls.
Average earning assets for the third quarter decreased $96.4 million, or 4.3%, from the third quarter of 2006 due primarily to a decline in funding sources and share repurchase activity which approximated $8.0 million for the third quarter of 2007. Average loans decreased $117.9 million, or 5.8% during the same period reflective of a high level of principal pay-downs and loan pay-offs, including the pay-off of several larger commercial loans, and a general slowing of lending activity.
Nonperforming assets of $14.1 million increased from year-end by $5.3 million. The increase in the level of nonperforming assets is due to a $4.3 million increase in non-accrual loans and a $1.0 million increase in other real estate owned. Nonperforming assets represented .74% of loans and other real estate at the end of the third quarter compared to .44% at year-end 2006.
Average total deposits decreased $69.4 million, or 3.4%, from the third quarter of 2006 driven primarily by declines in demand deposit ($59.0 million), savings ($15.0 million), and time deposits ($32.3 million). Increases in NOW ($14.5 million) and money market accounts ($22.3 million), respectively, partially offset the aforementioned declines in demand deposit, savings, and time deposits. The change in deposit mix between the demand deposit/savings and NOW/money market categories primarily reflects the migration of clients toward higher rate nonmaturity deposit products. The decline in time deposit balances reflects management's unwillingness to retain higher cost funding in the face of a declining loan portfolio.
The Company had approximately $31.9 million in average net overnight funds sold for the third quarter of 2007 as compared to $9.8 million in average net overnight funds sold in the third quarter of 2006. The increase is due to the aforementioned reduction in the loan portfolio.
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 $2.4 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 71 banking offices, three mortgage lending offices, and 79 ATMs in Florida, Georgia and Alabama. In 2006, Mergent, Inc., a leading provider of information on publicly traded companies, named the Company as a Dividend Achiever. To be named a Dividend Achiever, a public company must have increased its regular cash dividends for at least 10 consecutive years. Of all publicly traded U.S. companies that pay dividends, less than three percent made this list. Capital City Bank Group, Inc. was also named to this list in 2005. 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: our ability to integrate acquisitions; the strength of the U.S. economy and the local economies where we conduct 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; changes in consumer spending and savings habits; our growth and profitability; 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, 2006, 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.
EARNINGS HIGHLIGHTS
---------------------------------------------------------------------
Three Months Ended Nine Months Ended
-------------------------- -----------------
(Dollars in thousands, Sept 30, June 30, Sept 30, Sept 30, Sept 30,
except per share data) 2007 2007 2006 2007 2006
---------------------------------------------------------------------
EARNINGS
Net Income $ 7,171 7,891 8,680 22,019 24,416
Diluted Earnings
Per Common Share 0.41 0.43 0.47 1.22 1.31
---------------------------------------------------------------------
PERFORMANCE
Return on Average Equity 9.44% 10.23 10.83 9.53 10.36
Return on Average Assets 1.15 1.26 1.35 1.18 1.26
Net Interest Margin 5.27 5.33 5.45 5.30 5.36
Noninterest Income as
% of Operating Revenue 34.08 34.64 31.88 33.92 31.51
Efficiency Ratio 66.27 64.44 64.35 66.18 65.90
---------------------------------------------------------------------
CAPITAL ADEQUACY
Tier 1 Capital Ratio 13.74% 13.67 13.76 13.74 13.76
Total Capital Ratio 14.76 14.66 14.72 14.76 14.72
Leverage Ratio 11.49 11.14 11.26 11.49 11.26
Equity to Assets 12.26 11.91 12.47 12.26 12.47
---------------------------------------------------------------------
ASSET QUALITY
Allowance as % of Non-
Performing Loans 145.49% 193.69 269.35 145.49 269.35
Allowance as a % of
Loans 0.95 0.91 0.86 0.95 0.86
Net Charge-Offs as % of
Average Loans 0.21 0.27 0.13 0.25 0.10
Nonperforming Assets as
% of Loans and ORE 0.74 0.52 0.34 0.74 0.34
---------------------------------------------------------------------
STOCK PERFORMANCE
High $ 36.40 33.69 33.25 36.40 37.97
Low 27.69 29.12 29.87 27.69 29.51
Close 31.20 31.34 31.10 31.20 31.10
Average Daily Trading
Volume 40,247 40,051 19,185 35,017 20,653
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CAPITAL CITY BANK GROUP, INC.
CONSOLIDATED STATEMENT OF INCOME
Unaudited
---------------------------------------------------------------------
2007 2006
------------------------ ---------------
(Dollars in thousands, Third Second First Fourth Third
except per share data) Quarter Quarter Quarter Quarter Quarter
---------------------------------------------------------------------
INTEREST INCOME
Interest and Fees on Loans $ 38,692 39,092 39,053 40,096 40,260
Investment Securities 1,968 1,943 1,940 1,928 1,914
Funds Sold 639 689 521 576 338
---------------------------------------------------------------------
Total Interest Income 41,299 41,724 41,514 42,600 42,512
---------------------------------------------------------------------
INTEREST EXPENSE
Deposits 11,266 11,098 11,000 10,830 9,985
Short-Term Borrowings 734 737 761 722 753
Subordinated Notes Payable 936 932 926 936 936
Other Long-Term Borrowings 453 496 502 515 615
---------------------------------------------------------------------
Total Interest Expense 13,389 13,263 13,189 13,003 12,289
---------------------------------------------------------------------
Net Interest Income 27,910 28,461 28,325 29,597 30,223
Provision for Loan Losses 1,552 1,675 1,237 460 711
---------------------------------------------------------------------
Net Interest Income after
Provision for Loan Losses 26,358 26,786 27,088 29,137 29,512
---------------------------------------------------------------------
NONINTEREST INCOME
Service Charges on Deposit
Accounts 6,387 6,442 6,045 6,394 6,450
Data Processing 775 790 715 709 674
Asset Management Fees 1,200 1,175 1,225 1,180 1,215
Retail Brokerage Fees 625 804 462 586 520
Gain on Sale of Investment
Securities -- -- 7 -- --
Mortgage Banking Revenues 642 850 679 787 824
Merchant Fees 1,686 1,892 1,936 1,694 1,766
Interchange Fees 934 951 910 845 797
ATM/Debit Card Fees 685 661 641 658 635
Other 1,497 1,519 1,342 1,532 1,263
---------------------------------------------------------------------
Total Noninterest Income 14,431 15,084 13,962 14,385 14,144
---------------------------------------------------------------------
NONINTEREST EXPENSE
Salaries and Associate
Benefits 15,096 14,992 15,719 14,943 15,278
Occupancy, Net 2,409 2,324 2,236 2,460 2,354
Furniture and Equipment 2,513 2,494 2,349 2,259 2,491
Intangible Amortization 1,459 1,458 1,459 1,484 1,536
Other 8,442 8,629 8,799 8,838 8,763
---------------------------------------------------------------------
Total Noninterest Expense 29,919 29,897 30,562 29,984 30,422
---------------------------------------------------------------------
OPERATING PROFIT 10,870 11,973 10,488 13,538 13,234
Provision for Income Taxes 3,699 4,082 3,531 4,688 4,554
---------------------------------------------------------------------
NET INCOME $ 7,171 7,891 6,957 8,850 8,680
---------------------------------------------------------------------
PER SHARE DATA
Basic Earnings $ 0.41 0.43 0.38 0.48 0.47
Diluted Earnings 0.41 0.43 0.38 0.48 0.47
Cash Dividends 0.175 0.175 0.175 0.175 0.163
AVERAGE SHARES
Basic 17,709 18,089 18,409 18,525 18,530
Diluted 17,719 18,089 18,420 18,569 18,565
---------------------------------------------------------------------
Nine Months Ended
September 30
----------------------
(Dollars in thousands, except per share data) 2007 2006
--------------------------------------------- ----------------------
INTEREST INCOME
Interest and Fees on Loans $ 116,837 116,570
Investment Securities 5,851 5,260
Funds Sold 1,849 1,463
--------------------------------------------- ----------------------
Total Interest Income 124,537 123,293
--------------------------------------------- ----------------------
INTEREST EXPENSE
Deposits 33,364 26,423
Short-Term Borrowings 2,232 2,353
Subordinated Notes Payable 2,794 2,789
Other Long-Term Borrowings 1,451 2,189
--------------------------------------------- ----------------------
Total Interest Expense 39,841 33,754
--------------------------------------------- ----------------------
Net Interest Income 84,696 89,539
Provision for Loan Losses 4,464 1,499
--------------------------------------------- ----------------------
Net Interest Income after Provision for Loan
Losses 80,232 88,040
--------------------------------------------- ----------------------
NONINTEREST INCOME
Service Charges on Deposit Accounts 18,874 18,226
Data Processing 2,280 2,014
Asset Management Fees 3,600 3,420
Retail Brokerage Fees 1,891 1,505
Gain on Sale of Investment Securities 7 (4)
Mortgage Banking Revenues 2,171 2,448
Merchant Fees 5,514 5,284
Interchange Fees 2,795 2,260
ATM/Debit Card Fees 1,987 1,861
Other 4,358 4,178
--------------------------------------------- ----------------------
Total Noninterest Income 43,477 41,192
--------------------------------------------- ----------------------
NONINTEREST EXPENSE
Salaries and Associate Benefits 45,807 45,912
Occupancy, Net 6,969 6,935
Furniture and Equipment 7,356 7,652
Intangible Amortization 4,376 4,601
Other 25,870 26,484
--------------------------------------------- ----------------------
Total Noninterest Expense 90,378 91,584
--------------------------------------------- ----------------------
OPERATING PROFIT 33,331 37,648
Provision for Income Taxes 11,312 13,232
--------------------------------------------- ----------------------
NET INCOME $ 22,019 24,416
--------------------------------------------- ----------------------
PER SHARE DATA
Basic Earnings 1.22 1.31
Diluted Earnings 1.22 1.31
Cash Dividends 0.525 0.489
AVERAGE SHARES
Basic 18,066 18,604
Diluted 18,077 18,627
--------------------------------------------- ----------------------
CAPITAL CITY BANK GROUP, INC.
CONSOLIDATED STATEMENT OF FINANCIAL CONDITION
Unaudited
---------------------------------------------------------------------
2007 2006
-------------------------------- ---------------------
(Dollars in
thousands,
except per Third Second First Fourth Third
share data) Quarter Quarter Quarter Quarter Quarter
---------------------------------------------------------------------
ASSETS
Cash and Due
From Banks $ 91,378 95,573 92,233 98,769 100,781
Funds Sold
and Interest
Bearing
Deposits 19,599 77,297 93,832 78,795 35,631
---------------------------------------------------------------------
Total Cash
and Cash
Equivalents 110,977 172,870 186,065 177,564 136,412
Investment
Securities,
Available-
for-Sale 184,609 189,680 191,446 191,894 190,617
Loans, Net of
Unearned
Interest
Commercial,
Financial, &
Agricultural 205,628 203,555 205,048 229,327 218,442
Real Estate -
Construction 145,343 159,751 180,549 179,072 183,238
Real Estate -
Commercial 631,418 640,172 643,272 643,885 647,302
Real Estate -
Residential 480,488 493,783 509,040 524,301 529,087
Real Estate -
Home Equity 183,620 175,781 172,283 173,597 174,577
Consumer 246,137 240,110 235,175 234,596 237,069
Credit Card -- -- -- -- --
Other Loans 8,739 14,715 14,899 11,837 14,521
Overdrafts 2,515 2,844 5,575 3,106 5,223
---------------------------------------------------------------------
Total Loans,
Net of
Unearned
Interest 1,903,888 1,930,711 1,965,841 1,999,721 2,009,459
Allowance for
Loan Losses (18,001) (17,469) (17,108) (17,217) (17,311)
---------------------------------------------------------------------
Loans, Net 1,885,887 1,913,242 1,948,733 1,982,504 1,992,148
Premises and
Equipment,
Net 95,816 92,656 88,812 86,538 84,915
Intangible
Assets 100,026 101,485 102,944 104,402 105,886
Other Assets 62,611 60,815 60,117 55,008 48,895
---------------------------------------------------------------------
Total Other
Assets 258,453 254,956 251,873 245,948 239,696
---------------------------------------------------------------------
Total Assets $2,439,926 2,530,748 2,578,117 2,597,910 2,558,873
---------------------------------------------------------------------
LIABILITIES
Deposits:
Noninterest
Bearing
Deposits $ 419,242 456,986 467,875 490,014 506,331
NOW Accounts 530,619 559,050 575,740 599,433 533,549
Money Market
Accounts 399,578 401,415 396,150 384,568 387,906
Regular
Savings
Accounts 115,955 119,585 124,970 125,500 129,884
Certificates
of Deposit 472,019 472,554 477,327 482,139 491,569
---------------------------------------------------------------------
Total
Deposits 1,937,413 2,009,590 2,042,062 2,081,654 2,049,239
Short-Term
Borrowings 63,817 74,307 77,936 65,023 54,171
Subordinated
Notes Payable 62,887 62,887 62,887 62,887 62,887
Other Long-
Term
Borrowings 29,725 41,276 42,879 43,083 43,701
Other
Liabilities 47,031 41,251 41,841 29,493 29,833
---------------------------------------------------------------------
Total
Liabilities 2,140,873 2,229,311 2,267,605 2,282,140 2,239,831
---------------------------------------------------------------------
SHAREOWNERS'
EQUITY
Common Stock 176 179 183 185 185
Additional
Paid-In
Capital 50,789 58,001 71,366 80,654 80,938
Retained
Earnings 255,876 251,838 246,959 243,242 238,870
Accumulated
Other
Comprehensive
Loss, Net of
Tax (7,788) (8,581) (7,996) (8,311) (951)
---------------------------------------------------------------------
Total
Shareowners'
Equity 299,053 301,437 310,512 315,770 319,042
---------------------------------------------------------------------
Total
Liabilities
and
Shareowners'
Equity $2,439,926 2,530,748 2,578,117 2,597,910 2,558,873
---------------------------------------------------------------------
OTHER BALANCE
SHEET DATA
Earning
Assets $2,108,096 2,197,688 2,251,119 2,270,410 2,235,707
Intangible
Assets
Goodwill 84,811 84,811 84,811 84,811 84,811
Deposit Base 13,988 15,399 16,810 18,221 19,632
Other 1,227 1,275 1,323 1,370 1,443
Interest
Bearing
Liabilities 1,674,600 1,731,074 1,757,889 1,762,633 1,703,667
---------------------------------------------------------------------
Book Value
Per Diluted
Share $ 16.95 16.87 16.97 17.01 17.18
Tangible Book
Value Per
Diluted Share 11.28 11.19 11.34 11.39 11.48
---------------------------------------------------------------------
Actual Basic
Shares
Outstanding 17,628 17,869 18,287 18,518 18,532
Actual Diluted
Shares
Outstanding 17,639 17,869 18,297 18,562 18,567
---------------------------------------------------------------------
CAPITAL CITY BANK GROUP, INC.
ALLOWANCE FOR LOAN LOSSES
AND NONPERFORMING ASSETS
Unaudited
---------------------------------------------------------------------
2007 2006
------------------------ ---------------
Third Second First Fourth Third
(Dollars in thousands) Quarter Quarter Quarter Quarter Quarter
---------------------------------------------------------------------
ALLOWANCE FOR LOAN LOSSES
Balance at Beginning of
Period $ 17,469 17,108 17,217 17,311 17,264
Provision for Loan Losses 1,552 1,675 1,237 460 711
Net Charge-Offs 1,020 1,314 1,346 554 664
---------------------------------------------------------------------
Balance at End of Period $ 18,001 17,469 17,108 17,217 17,311
---------------------------------------------------------------------
As a % of Loans 0.95% 0.91 0.87 0.86 0.86
As a % of Nonperforming
Loans 145.49 193.69 207.67 214.09 269.35
As a % of Nonperforming
Assets 128.05 172.60 181.23 197.19 253.79
---------------------------------------------------------------------
CHARGE-OFFS
Commercial, Financial and
Agricultural $ 279 253 560 81 294
Real Estate - Construction -- -- 108 -- --
Real Estate - Commercial 245 5 326 54 --
Real Estate - Residential 161 992 67 154 81
Consumer 854 534 761 787 690
---------------------------------------------------------------------
Total Charge-Offs $ 1,539 1,784 1,822 1,076 1,065
---------------------------------------------------------------------
RECOVERIES
Commercial, Financial and
Agricultural $ 44 47 36 77 43
Real Estate - Construction -- -- -- -- --
Real Estate - Commercial 2 5 5 9 4
Real Estate - Residential 2 26 3 1 2
Consumer 471 392 432 435 352
---------------------------------------------------------------------
Total Recoveries $ 519 470 476 522 401
---------------------------------------------------------------------
NET CHARGE-OFFS $ 1,020 1,314 1,346 554 664
---------------------------------------------------------------------
Net Charge-Offs as a % of
Average Loans (1) 0.21% 0.27 0.28 0.11 0.13
---------------------------------------------------------------------
RISK ELEMENT ASSETS
Nonaccruing Loans $ 12,373 9,019 8,238 8,042 6,427
Restructured -- -- -- -- --
---------------------------------------------------------------------
Total Nonperforming Loans 12,373 9,019 8,238 8,042 6,427
Other Real Estate 1,685 1,102 1,202 689 394
---------------------------------------------------------------------
Total Nonperforming
Assets $ 14,058 10,121 9,440 8,731 6,821
---------------------------------------------------------------------
Past Due Loans 90 Days or
More $ 874 332 860 135 300
---------------------------------------------------------------------
Nonperforming Loans as a
% of Loans 0.65% 0.47 0.42 0.40 0.32
Nonperforming Assets as a
% of Loans and Other Real
Estate 0.74 0.52 0.48 0.44 0.34
Nonperforming Assets as a
% of Capital (2) 4.43 3.17 2.88 2.62 2.03
---------------------------------------------------------------------
(1) Annualized
(2) Capital includes allowance for loan losses.
AVERAGE BALANCE AND INTEREST RATES(1)
Unaudited
---------------------------------------------------------------------
Third Quarter 2007 Second Quarter 2007
-------------------------- ------------------------
(Dollars in Average Average Average Average
thousands) Balance Interest Rate Balance Interest Rate
------------------------- -------- ------- -------- -------- -----
ASSETS:
Loans, Net of
Unearned
Interest $1,907,235 $38,901 8.09% 1,944,969 39,300 8.10
Investment
Securities
Taxable
Investment
Securities 102,618 1,224 4.75 105,425 1,236 4.68
Tax-Exempt
Investment
Securities 85,446 1,142 5.35 83,907 1,088 5.19
---------------------------------------------------------------------
Total Investment
Securities 188,064 2,366 5.02 189,332 2,324 4.91
Funds Sold 49,438 639 5.06 52,935 689 5.15
---------------------------------------------------------------------
Total Earning
Assets 2,144,737 $41,906 7.75% 2,187,236 42,313 7.76
============== =============
Cash and Due
From Banks 84,477 88,075
Allowance For
Loan Losses (17,664) (17,263)
Other Assets 256,153 253,204
--------------------------- ---------
Total Assets $2,467,703 2,511,252
=========================== =========
LIABILITIES:
Interest Bearing
Deposits
NOW Accounts $ 525,795 $ 2,531 1.91% 541,525 2,611 1.93
Money Market
Accounts 403,957 3,565 3.50 393,403 3,458 3.53
Savings
Accounts 117,451 70 0.24 122,560 74 0.24
Time Deposits 471,868 5,100 4.29 474,761 4,955 4.19
---------------------------------------------------------------------
Total Interest
Bearing Deposits 1,519,071 11,266 2.94 1,532,249 11,098 2.91
Short-Term
Borrowings 65,130 734 4.45 66,764 737 4.41
Subordinated
Notes Payable 62,887 936 5.91 62,887 932 5.94
Other Long-Term
Borrowings 38,269 453 4.70 42,284 496 4.71
---------------------------------------------------------------------
Total Interest
Bearing
Liabilities 1,685,357 $13,389 3.15% 1,704,184 13,263 3.12
============== =============
Noninterest
Bearing Deposits 435,089 455,169
Other Liabilities 45,721 42,547
---------------------------
Total
Liabilities 2,166,167 2,201,900
SHAREOWNERS'
EQUITY: $ 301,536 309,352
---------------------------
Total Liabilities
and Shareowners'
Equity $2,467,703 2,511,252
===========================
Interest Rate
Spread $28,517 4.60% 29,050 4.64
=========================================== =============
Interest Income
and Rate
Earned(2) $41,906 7.75 42,313 7.76
Interest Expense
and Rate Paid(2) 13,389 2.48 13,263 2.43
------------------------------------------ -------------
Net Interest
Margin $28,517 5.27% 29,050 5.33
=========================================== =============
---------------------------
First Quarter 2007
---------------------------
Average Average
(Dollars in thousands) Balance Interest Rate
------------------------------- ---------- -------- -------
ASSETS:
Loans, Net of Unearned Interest $1,980,224 $39,264 8.04%
Investment Securities
Taxable Investment Securities 108,377 1,263 4.67
Tax-Exempt Investment Securities 82,627 1,039 5.03
---------------------------------------------------------------------
Total Investment Securities 191,004 2,302 4.82
Funds Sold 40,332 521 5.17
---------------------------------------------------------------------
Total Earning Assets 2,211,560 $42,087 7.71%
===============
Cash and Due From Banks 88,679
Allowance For Loan Losses (17,073)
Other Assets $ 247,624
----------
Total Assets $2,530,790
==========
LIABILITIES:
Interest Bearing Deposits
NOW Accounts $ 552,303 $ 2,626 1.93%
Money Market Accounts 386,736 3,427 3.59
Savings Accounts 125,419 78 0.25
Time Deposits 480,964 4,869 4.11
---------------------------------------------------------------------
Total Interest Bearing Deposits 1,545,422 11,000 2.89
Short-Term Borrowings 68,911 761 4.46
Subordinated Notes Payable 62,887 926 5.97
Other Long-Term Borrowings 43,137 502 4.72
---------------------------------------------------------------------
Total Interest Bearing Liabilities 1,720,357 $13,189 3.11%
------- -----
Noninterest Bearing Deposits 458,304
Other Liabilities 35,645
----------
Total Liabilities 2,214,306
SHAREOWNERS' EQUITY: $ 316,484
----------
Total Liabilities and Shareowners' Equity $2,530,790
==========
Interest Rate Spread $28,898 4.60%
===============
Interest Income and Rate Earned (2) $42,087 7.71
Interest Expense and Rate Paid (2) 13,189 2.42
---------------
Net Interest Margin $28,898 5.29%
===============
----------------------------------------------------
Fourth Quarter 2006 Third Quarter 2006
------------------------- ------------------------
(Dollars in Average Average Average Average
thousands) Balance Interest Rate Balance Interest Rate
------------------------- -------- ------- -------- -------- ------
ASSETS:
Loans, Net of
Unearned
Interest $2,003,719 $40,296 7.98% 2,025,112 40,443 7.92
Investment
Securities
Taxable
Investment
Securities 108,041 1,263 4.66 109,097 1,264 4.60
Tax-Exempt
Investment
Securities 82,568 1,020 4.94 81,409 999 4.90
---------------------------------------------------------------------
Total Investment
Securities 190,609 2,283 4.78 190,506 2,263 4.73
Funds Sold 43,738 576 5.15 25,540 338 5.19
---------------------------------------------------------------------
Total Earning
Assets 2,238,066 $43,155 7.65% 2,241,158 43,034 7.62
============== =============
Cash and Due
From Banks 94,449 96,969
Allowance For
Loan Losses (17,503) (17,420)
Other Assets 242,345 239,448
--------------------------- ---------
Total Assets $2,557,357 2,560,155
=========================== =========
LIABILITIES:
Interest Bearing
Deposits
NOW Accounts $ 542,751 $ 2,522 1.84% 511,299 2,026 1.57
Money Market
Accounts 391,346 3,488 3.54 381,628 3,259 3.39
Savings
Accounts 128,027 76 0.24 132,421 73 0.22
Time Deposits 484,807 4,744 3.88 504,121 4,627 3.64
---------------------------------------------------------------------
Total Interest
Bearing Deposits 1,546,931 10,830 2.78 1,529,469 9,985 2.59
Short-Term
Borrowings 65,385 722 4.36 73,078 753 4.07
Subordinated
Notes Payable 62,887 936 5.91 62,887 936 5.91
Other Long-Term
Borrowings 43,453 515 4.71 52,367 615 4.66
---------------------------------------------------------------------
Total Interest
Bearing
Liabilities 1,718,656 $13,003 3.00% 1,717,801 12,289 2.84
============== =============
Noninterest
Bearing Deposits 481,522 494,054
Other Liabilities 33,276 30,259
--------------------------- ---------
Total Liabilities 2,233,454 2,242,114
SHAREOWNERS'
EQUITY: $ 323,903 318,041
--------------------------- ---------
Total Liabilities
and Shareowners'
Equity $2,557,357 2,560,155
=========================== =========
Interest Rate
Spread $30,152 4.65% 30,745 4.78
=========================================== ===============
Interest Income
and Rate
Earned(2) $43,155 7.65 43,034 7.62
Interest Expense
and Rate Paid(2) 13,003 2.30 12,289 2.17
-------------------------------------------- ---------------
Net Interest
Margin $30,152 5.35% 30,745 5.45
=========================================== ===============
----------------------------------------------------
Nine Months Ended Nine Months Ended
September 2007 September 2006
------------------------- ------------------------
(Dollars in Average Average Average Average
thousands) Balance Interest Rate Balance Interest Rate
------------------------- -------- ------- -------- -------- ------
ASSETS:
Loans, Net of
Unearned
Interest $1,943,874 $117,465 8.08% 2,038,050 116,931 7.67
Investment
Securities
Taxable
Investment
Securities 105,453 3,723 4.70 113,859 3,588 4.19
Tax-Exempt
Investment
Securities 84,003 3,269 5.19 71,960 2,568 4.76
---------------------------------------------------------------------
Total Investment
Securities 189,456 6,992 4.92 185,819 6,156 4.41
Funds Sold 47,602 1,849 5.12 41,219 1,463 4.69
---------------------------------------------------------------------
Total Earning
Assets 2,180,932 $126,306 7.74% 2,265,088 124,550 7.35
=============== =============
Cash and Due
From Banks 87,062 102,188
Allowance For
Loan Losses (17,336) (17,481)
Other Assets 252,359 239,277
--------------------------- ---------
Total Assets $2,503,017 2,589,072
=========================== =========
LIABILITIES:
Interest Bearing
Deposits
NOW Accounts 539,777 $ 7,768 1.92% 510,556 5,136 1.34
Money Market
Accounts 394,762 10,450 3.54 363,150 8,199 3.02
Savings
Accounts 121,781 222 0.24 136,058 202 0.20
Time Deposits 475,831 14,924 4.19 514,857 12,886 3.35
---------------------------------------------------------------------
Total Interest
Bearing
Deposits 1,532,151 33,364 2.91 1,524,621 26,423 2.32
Short-Term
Borrowings 66,921 2,232 4.44 83,187 2,353 3.77
Subordinated
Notes Payable 62,887 2,794 5.94 62,887 2,789 5.93
Other Long-Term
Borrowings 41,212 1,451 4.71 61,912 2,189 4.73
---------------------------------------------------------------------
Total Interest
Bearing
Liabilities 1,703,171 $ 39,841 3.13% 1,732,607 33,754 2.60
=============== =============
Noninterest
Bearing
Deposits 449,436 512,493
Other
Liabilities 41,341 28,849
--------------------------- ---------
Total Liabilities 2,193,948 2,273,949
SHAREOWNERS'
EQUITY: $ 309,069 315,123
--------------------------- ---------
Total Liabilities
and Shareowners'
Equity $2,503,017 2,589,072
=========================== =========
Interest Rate
Spread $86,465 4.61% 90,796 4.75
============================================ =============
Interest Income
and Rate
Earned(2) $126,306 7.74 124,550 7.35
Interest Expense
and Rate Paid(2) 39,841 2.44 33,754 1.99
-------------------------------------------- --------------
Net Interest
Margin $ 86,465 5.30% 90,796 5.36
============================================ =============
(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, Chief Financial Officer
850.402.7820
Released October 23, 2007