Capital City Bank Group, Inc. Reports Third Quarter 2019 Results

TALLAHASSEE, Fla., Oct. 29, 2019 (GLOBE NEWSWIRE) -- Capital City Bank Group, Inc. (NASDAQ: CCBG) today reported net income of $8.5 million, or $0.50 per diluted share for the third quarter of 2019 compared to net income of $7.3 million, or $0.44 per diluted share for the second quarter of 2019, and $6.0 million, or $0.35 per diluted share for the third quarter of 2018. For the first nine months of 2019, net income totaled $22.2 million, or $1.32 per diluted share, compared to net income of $17.8 million, or $1.04 per diluted share for the same period of 2018.

Net income for the first nine months of 2018 included tax benefits totaling $3.3 million, or $0.19 per diluted share (1Q - $1.5 million, or $0.09 per diluted share, 2Q - $1.4 million, or $0.08 per diluted share, and 3Q - $0.4 million, or $0.02 per diluted share) related to 2017 plan year pension contributions made in 2018.

HIGHLIGHTS

Strong operating leverage
- Net interest income up 0.8% sequentially and 13.1% year-over-year
- Noninterest income up 8.9% sequentially and 2.3% year-over-year
- Noninterest expense down 1.8% sequentially and 0.6% year-over-year
Net interest margin of 3.92%, up seven basis points over prior quarter
Average loans up $14 million, or 0.8% sequentially and $118 million, or 7.0% year-over-year
Classified loans declined $5.1 million, or 19% sequentially
Tangible common equity ratio, a non-GAAP financial measure, up 48 basis points sequentially to 8.31%

“Capital City reported a strong third quarter, and year-to-date net income is up 25%,” said William G. Smith, Jr., Capital City Bank Group Chairman, President and CEO. “Given the reduction in rates during the quarter, I was pleased with the improvement in our net interest margin, which was driven by a seven basis point decline in our cost of funds. Noninterest income is well diversified, and we posted solid growth for the quarter while our efficiency ratio declined to 69%. Although average loan growth slowed this quarter, year-to-date we have enjoyed strong growth in our C&I, construction and residential portfolios, and credit quality continues to improve. Florida and Georgia are strong and growing, and I remain optimistic. 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 second quarter of 2019, the $1.7 million increase in operating profit reflected a $0.2 million increase in net interest income, higher noninterest income of $1.1 million, and lower noninterest expense of $0.5 million, partially offset by a $0.1 million increase in the loan loss provision.

Compared to the third quarter of 2018, the $4.1 million increase in operating profit was attributable to higher net interest income of $2.6 million, higher noninterest income of $0.6 million, lower noninterest expense of $0.8 million, and a $0.1 million decrease in the loan loss provision.

The increase in operating profit of $10.6 million for the first nine months of 2019 versus the comparable period of 2018 was attributable to higher net interest income of $8.9 million, higher noninterest income of $0.9 million, lower noninterest expense of $0.5 million, and a $0.3 million decrease in the loan loss provision.

Our return on average assets (“ROA”) was 1.14% and our return on average equity (“ROE”) was 10.51% for the third quarter of 2019. These metrics were 0.98% and 9.37% for the second quarter of 2019, respectively, and 0.84% and 7.98% for the third quarter of 2018, respectively. For the first nine months of 2019, our ROA was 1.00% and our ROE was 9.48% compared to 0.83% and 8.12%, respectively, for the same period of 2018.

Discussion of Operating Results

Tax-equivalent net interest income for the third quarter of 2019 was $26.3 million compared to $26.1 million for the second quarter of 2019 and $23.8 million for the third quarter of 2018. The increase in tax-equivalent net interest income compared to the second quarter of 2019 reflected a favorable shift in the average earning asset mix. The increase compared to the third quarter of 2018 primarily reflected higher interest rates and loan growth. For the first nine months of 2019, tax-equivalent net interest income totaled $77.5 million compared to $68.6 million for the comparable period of 2018. The year-over-year increase was driven by growth in the loan portfolio, coupled with higher short-term rates, partially offset by higher rates paid on our negotiated rate deposits.

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 third quarter, 2019, the Federal Open Market Committee reduced rates by an aggregate of 50 basis points to the current range of 1.75% to 2.00%. These rate cuts have resulted in downward repricing of our variable/adjustable rate earning assets, which to date has been offset by loan growth and lower rates paid on our negotiated rate deposit products. We continue to prudently manage our overall cost of funds, which was 33 basis points for the third quarter of 2019, compared to 40 basis points for the second 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 third quarter of 2019 was 3.92%, an increase of seven basis points over the second quarter of 2019 and an increase of 20 basis points over the third quarter of 2018. For the first nine months of 2019, the net interest margin increased 26 basis points to 3.84% compared to the same period of 2018. The increase in margin compared to the second quarter of 2019 was fully attributable to a seven basis point decline in our cost of funds, as both the rate and balance of our seasonal public deposits declined in the third quarter 2019. The increase in the margin compared to both prior year periods reflected a favorable shift in our earning asset mix and higher interest rates.

The provision for loan losses for the third quarter of 2019 was $0.8 million compared to $0.6 million for the second quarter of 2019 and $0.9 million for the third quarter of 2018. For the first nine months of 2019, the loan loss provision was $2.2 million compared to $2.5 million in 2018. At September 30, 2019, the allowance for loan losses of $14.3 million represented 0.78% of outstanding loans (net of overdrafts) and provided coverage of 291% of nonperforming loans compared to 0.79% and 260%, respectively, at June 30, 2019 and 0.80% and 207%, respectively, at December 31, 2018.

Noninterest income for the third quarter of 2019 totaled $13.9 million, an increase of $1.1 million, or 8.9%, over the second quarter of 2019 and a $0.6 million, or 4.5%, increase over the third quarter of 2018. For the first nine months of 2019, noninterest income totaled $39.2 million, a $0.9 million, or 2.3%, increase over the same period of 2018. Higher wealth management fees, mortgage banking fees, and deposit fees drove the increase compared to the second quarter of 2019. The increase over both prior year periods was primarily attributable to higher wealth management fees (increased trading activity by retail brokerage clients and, to a lesser extent, higher assets under management) and mortgage banking fees.

Noninterest expense for the third quarter of 2019 totaled $27.9 million, a decrease of $0.5 million, or 1.8%, from the second quarter of 2019 and $0.8 million, or 2.9%, from the third quarter of 2018. For the first nine months of 2019, noninterest expense totaled $84.5 million, a $0.5 million, or 0.6% decrease from the same period of 2018. In the third quarter of 2019, our small bank assessment credits were used to offset our FDIC insurance fees, which had a favorable impact of $0.4 million. Lower expense for other real estate owned (“OREO”) properties also contributed to the favorable variance versus both prior year periods.

We realized income tax expense of $7.4 million (effective rate of 25.0%) for the first nine months of 2019 compared to $1.3 million (effective rate of 6.6%) for the same period of 2018. Income tax expense for the third quarter of 2019 was unfavorably impacted by net discrete items totaling $0.2 million. 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 $2.670 billion for the third quarter of 2019, a decrease of $49.1 million, or 1.8%, from the second quarter of 2019, and an increase of $115.6 million, or 4.5%, over the fourth quarter of 2018. The change in average earning assets compared to the second quarter of 2019 was attributable to a decrease in short-term investments, primarily due to a decline in seasonal public fund balances and certificates of deposit. The increase in average earning assets over the fourth quarter of 2018 was attributable to growth in both the loan portfolio and the overnight funds position, which was primarily funded by increases in noninterest bearing deposits and savings accounts.

We maintained an average net overnight funds (deposits with banks plus fed funds sold less fed funds purchased) sold position of $207.1 million during the third quarter of 2019 compared to an average net overnight funds sold position of $251.8 million in the second quarter of 2019 and $80.8 million in the fourth quarter of 2018. The decrease in average net overnight funds compared to the second quarter 2019 reflected a decline in public fund deposits, partially offset by cash flow received from the investment portfolio. Overnight funds grew compared to the fourth quarter 2018 primarily due to higher balances of noninterest bearing deposits and cash flow from our investment portfolio, partially offset by loan growth.

Average loans increased $14.2 million, or 0.8% compared to the second quarter of 2019, and grew by $52.0 million, or 2.9% compared to the fourth quarter of 2018. The average increase compared to the second quarter of 2019 reflected growth in all loan types except commercial real estate, consumer loans, and home equity loans. The increase compared to the fourth quarter of 2018 reflected growth in all product types except consumer and home equity loans. Over the course of 2019, we purchased adjustable rate residential loans totaling $11.2 million and a fixed rate commercial loan pool totaling $10.3 million 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 $5.5 million at September 30, 2019, a decrease of $1.2 million, or 17.8%, from June 30, 2019 and $3.6 million, or 40.1%, from December 31, 2018. Nonaccrual loans totaled $4.9 million at September 30, 2019, a $0.7 million decrease from June 30, 2019 and a $1.9 million decrease from December 31, 2018. The balance of OREO totaled $0.5 million at September 30, 2019, a decrease of $0.5 million and $1.7 million, respectively, from June 30, 2019 and December 31, 2018.

Average total deposits were $2.496 billion for the third quarter of 2019, a decrease of $69.7 million, or 2.7%, from the second quarter of 2019, and an increase of $83.4 million, or 3.5%, over the fourth quarter of 2018. The decline in average deposits compared to the second quarter of 2019 reflected lower public fund and certificates of deposit balances, partially offset by increases in noninterest bearing and savings accounts. The increase in average deposits compared to the fourth quarter of 2018 primarily reflected growth in noninterest bearing deposits.

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 third quarter 2019 decreased $1.3 million compared to the second quarter 2019, and declined $9.5 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 $321.6 million at September 30, 2019 compared to $314.6 million at June 30, 2019 and $302.6 million at December 31, 2018. Our leverage ratio was 11.09%, 10.64%, and 10.89%, respectively, on these dates. At September 30, 2019, our total risk-based capital ratio was 17.59% compared to 17.13% and 17.13%, respectively. Our common equity tier 1 capital ratio was 14.13% at September 30, 2019 compared to 13.67% at June 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 8.31% at September 30, 2019 compared to 7.83% and 7.58% for June 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 $2.9 billion in assets. We provide a full range of banking services, including traditional deposit and credit services, mortgage banking, asset management, trust, merchant services, bankcards and securities brokerage services. Our bank subsidiary, Capital City Bank, was founded in 1895 and now has 57 banking offices and 81 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)		Sep 30, 2019			Jun 30, 2019			Mar 31, 2019			Dec 31, 2018			Sep 30, 2018
Shareowners' Equity (GAAP)		$	321,562		$	314,595		$	308,986		$	302,587		$	298,016
Less: Goodwill (GAAP)			84,811			84,811			84,811			84,811			84,811
Tangible Shareowners' Equity (non-GAAP)	A		236,751			229,784			224,175			217,776			213,205
Total Assets (GAAP)			2,934,513			3,017,654			3,052,051			2,959,183			2,819,190
Less: Goodwill (GAAP)			84,811			84,811			84,811			84,811			84,811
Tangible Assets (non-GAAP)	B	$	2,849,702		$	2,932,843		$	2,967,240		$	2,874,372		$	2,734,379
Tangible Common Equity Ratio (non-GAAP)	A/B		8.31	%		7.83	%		7.56	%		7.58	%		7.80	%
Actual Diluted Shares Outstanding (GAAP)	C		16,797,241			16,773,449			16,840,496			16,808,542			17,127,846
Tangible Book Value per Diluted Share (non-GAAP)	A/C	$	14.09		$	13.70		$	13.31		$	12.96		$	12.45


CAPITAL CITY BANK GROUP, INC.
EARNINGS HIGHLIGHTS
*Unaudited*

		Three Months Ended									Nine Months Ended
(Dollars in thousands, except per share data)		Sep 30, 2019			Jun 30, 2019			Sep 30, 2018			Sep 30, 2019			Sep 30, 2018

EARNINGS
Net Income	$	8,481		$	7,325		$	5,990		$	22,242		$	17,766
Net Income Per Common Share	$	0.50		$	0.44		$	0.35		$	1.32		$	1.04
PERFORMANCE
Return on Average Assets		1.14	%		0.98	%		0.84	%		1.00	%		0.83	%
Return on Average Equity		10.51	%		9.37	%		7.98	%		9.48	%		8.12	%
Net Interest Margin		3.92	%		3.85	%		3.72	%		3.84	%		3.58	%
Noninterest Income as % of Operating Revenue		34.67	%		32.95	%		36.04	%		33.72	%		35.99	%
Efficiency Ratio		69.27	%		73.02	%		77.37	%		72.37	%		79.46	%
CAPITAL ADEQUACY
Tier 1 Capital Ratio		16.83	%		16.36	%		16.17	%		16.83	%		16.17	%
Total Capital Ratio		17.59	%		17.13	%		16.94	%		17.59	%		16.94	%
Leverage Ratio		11.09	%		10.64	%		10.99	%		11.09	%		10.99	%
Common Equity Tier 1 Ratio		14.13	%		13.67	%		13.43	%		14.13	%		13.43	%
Tangible Common Equity Ratio⁽¹⁾		8.31	%		7.83	%		7.80	%		8.31	%		7.80	%
Equity to Assets		10.96	%		10.43	%		10.57	%		10.96	%		10.57	%
ASSET QUALITY
Allowance as % of Non-Performing Loans		290.55	%		259.55	%		207.06	%		290.55	%		207.06	%
Allowance as a % of Loans		0.78	%		0.79	%		0.80	%		0.78	%		0.80	%
Net Charge-Offs as % of Average Loans		0.23	%		0.04	%		0.06	%		0.15	%		0.12	%
Nonperforming Assets as % of Loans and ORE		0.30	%		0.36	%		0.54	%		0.30	%		0.54	%
Nonperforming Assets as % of Total Assets		0.19	%		0.22	%		0.34	%		0.19	%		0.34	%
STOCK PERFORMANCE
High	$	28.00		$	25.00		$	25.91		$	28.00		$	26.50
Low		23.70			21.57			23.19			21.04			22.28
Close	$	27.45		$	24.85		$	23.34		$	27.45		$	23.34
Average Daily Trading Volume		25,596			24,258			16,500			22,815			20,957

⁽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)		Third Quarter			Second Quarter			First Quarter			Fourth Quarter			Third Quarter
ASSETS
Cash and Due From Banks	$	61,151		$	53,731		$	49,501		$	62,032		$	48,423
Funds Sold and Interest Bearing Deposits		177,389			234,097			304,213			213,968			26,839
Total Cash and Cash Equivalents		238,540			287,828			353,714			276,000			75,262

Investment Securities Available for Sale		376,981			410,851			429,016			446,157			484,243
Investment Securities Held to Maturity		240,303			229,516			226,179			217,320			227,923
Total Investment Securities		617,284			640,367			655,195			663,477			712,166

Loans Held for Sale		13,075			9,885			4,557			6,869			8,297

Loans, Net of Unearned Interest
Commercial, Financial, & Agricultural		259,870			265,001			238,942			233,689			239,044
Real Estate - Construction		111,358			101,372			87,123			89,527			87,672
Real Estate - Commercial		610,726			614,618			615,129			602,061			596,391
Real Estate - Residential		354,545			349,843			338,574			334,197			333,896
Real Estate - Home Equity		197,326			201,579			209,194			210,111			212,942
Consumer		277,970			288,196			296,351			295,040			294,040
Other Loans		14,248			13,131			10,430			8,018			8,167
Overdrafts		1,710			1,442			1,362			1,582			1,602
Total Loans, Net of Unearned Interest		1,827,753			1,835,182			1,797,105			1,774,225			1,773,754
Allowance for Loan Losses		(14,319	)		(14,593	)		(14,120	)		(14,210	)		(14,219	)
Loans, Net		1,813,434			1,820,589			1,782,985			1,760,015			1,759,535

Premises and Equipment, Net		85,810			86,005			86,846			87,190			89,567
Goodwill		84,811			84,811			84,811			84,811			84,811
Other Real Estate Owned		526			1,010			1,902			2,229			2,720
Other Assets		81,033			87,159			82,041			78,592			86,832
Total Other Assets		252,180			258,985			255,600			252,822			263,930

Total Assets	$	2,934,513		$	3,017,654		$	3,052,051		$	2,959,183		$	2,819,190

LIABILITIES
Deposits:
Noninterest Bearing Deposits	$	1,022,774		$	1,024,898		$	995,853		$	947,858		$	934,146
NOW Accounts		728,395			810,568			887,453			867,209			713,967
Money Market Accounts		239,410			240,181			244,628			237,739			254,099
Regular Savings Accounts		372,601			371,773			372,414			358,306			352,508
Certificates of Deposit		109,827			113,684			116,946			120,744			126,496
Total Deposits		2,473,007			2,561,104			2,617,294			2,531,856			2,381,216

Short-Term Borrowings		10,622			9,753			8,983			13,541			16,644
Subordinated Notes Payable		52,887			52,887			52,887			52,887			52,887
Other Long-Term Borrowings		6,963			7,313			7,661			8,568			12,456
Other Liabilities		69,472			72,002			56,240			49,744			57,971

Total Liabilities		2,612,951			2,703,059			2,743,065			2,656,596			2,521,174

SHAREOWNERS' EQUITY
Common Stock		167			167			168			167			171
Additional Paid-In Capital		31,075			30,751			31,929			31,058			38,325
Retained Earnings		316,551			310,247			304,763			300,177			293,254
Accumulated Other Comprehensive Loss, Net of Tax		(26,231	)		(26,570	)		(27,874	)		(28,815	)		(33,734	)

Total Shareowners' Equity		321,562			314,595			308,986			302,587			298,016

Total Liabilities and Shareowners' Equity	$	2,934,513		$	3,017,654		$	3,052,051		$	2,959,183		$	2,819,190

OTHER BALANCE SHEET DATA
Earning Assets	$	2,635,501		$	2,719,530		$	2,761,070		$	2,658,539		$	2,521,056
Interest Bearing Liabilities		1,520,705			1,606,159			1,690,972			1,658,994			1,529,057

Book Value Per Diluted Share	$	19.14		$	18.76		$	18.35		$	18.00		$	17.40
Tangible Book Value Per Diluted Share⁽¹⁾		14.09			13.70			13.31			12.96			12.45

Actual Basic Shares Outstanding		16,749			16,746			16,812			16,748			17,059
Actual Diluted Shares Outstanding		16,797			16,773			16,840			16,809			17,128

⁽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*

													Nine Months Ended
		2019						2018					September 30,
(Dollars in thousands, except per share data)		Third Quarter		Second Quarter		First Quarter		Fourth Quarter			Third Quarter		2019		2018

INTEREST INCOME
Interest and Fees on Loans	$	23,992	$	23,765	$	22,616	$	22,431		$	21,618	$	70,373	$	61,686
Investment Securities		3,307		3,393		3,513		3,478			3,472		10,213		9,390
Funds Sold		1,142		1,507		1,593		461			302		4,242		1,949
Total Interest Income		28,441		28,665		27,722		26,370			25,392		84,828		73,025

INTEREST EXPENSE
Deposits		1,596		1,988		2,099		1,312			1,068		5,683		2,931
Short-Term Borrowings		27		31		35		53			41		93		57
Subordinated Notes Payable		558		596		608		572			568		1,762		1,595
Other Long-Term Borrowings		63		66		72		85			92		201		286
Total Interest Expense		2,244		2,681		2,814		2,022			1,769		7,739		4,869
Net Interest Income		26,197		25,984		24,908		24,348			23,623		77,089		68,156
Provision for Loan Losses		776		646		767		457			904		2,189		2,464
Net Interest Income after Provision for Loan Losses		25,421		25,338		24,141		23,891			22,719		74,900		65,692

NONINTEREST INCOME
Deposit Fees		4,961		4,756		4,775		5,172			5,207		14,492		14,921
Bank Card Fees		2,972		3,036		2,855		2,830			2,828		8,863		8,548
Wealth Management Fees		2,992		2,404		2,323		2,320			2,181		7,719		6,391
Mortgage Banking Fees		1,587		1,199		993		1,129			1,343		3,779		3,606
Other		1,391		1,375		1,606		1,787			1,749		4,372		4,861
Total Noninterest Income		13,903		12,770		12,552		13,238			13,308		39,225		38,327

NONINTEREST EXPENSE
Compensation		16,203		16,437		16,349		16,322			15,891		48,989		47,599
Occupancy, Net		4,710		4,537		4,509		4,804			4,645		13,756		13,699
Other Real Estate, Net		6		75		363		(1,663	)		347		444		1,221
Other		6,954		7,347		6,977		7,042			7,816		21,278		22,479
Total Noninterest Expense		27,873		28,396		28,198		26,505			28,699		84,467		84,998

OPERATING PROFIT		11,451		9,712		8,495		10,624			7,328		29,658		19,021
Income Tax Expense		2,970		2,387		2,059		2,166			1,338		7,416		1,255
NET INCOME	$	8,481	$	7,325	$	6,436	$	8,458		$	5,990	$	22,242	$	17,766

PER SHARE DATA
Basic Net Income	$	0.51	$	0.44	$	0.38	$	0.50		$	0.35	$	1.33	$	1.04
Diluted Net Income		0.50		0.44		0.38		0.50			0.35		1.32		1.04
Cash Dividend	$	0.13	$	0.11	$	0.11	$	0.09		$	0.09	$	0.35	$	0.23
AVERAGE SHARES
Basic		16,747		16,791		16,791		16,989			17,056		16,776		17,043
Diluted		16,795		16,818		16,819		17,050			17,125		16,810		17,102


CAPITAL CITY BANK GROUP, INC.
ALLOWANCE FOR LOAN LOSSES
AND RISK ELEMENT ASSETS
*Unaudited*

																	Nine Months Ended
		2019									2018						September 30,
(Dollars in thousands, except per share data)		Third Quarter			Second Quarter			First Quarter			Fourth Quarter			Third Quarter			2019			2018

ALLOWANCE FOR LOAN LOSSES
Balance at Beginning of Period	$	14,593		$	14,120		$	14,210		$	14,219		$	13,563		$	14,210		$	13,307
Provision for Loan Losses		776			646			767			457			904			2,189			2,464
Net Charge-Offs		1,050			173			857			466			248			2,080			1,552
Balance at End of Period	$	14,319		$	14,593		$	14,120		$	14,210		$	14,219		$	14,319		$	14,219
As a % of Loans		0.78	%		0.79	%		0.78	%		0.80	%		0.80	%		0.78	%		0.80	%
As a % of Nonperforming Loans		290.55	%		259.55	%		279.77	%		206.79	%		207.06	%		290.55	%		207.06	%

CHARGE-OFFS
Commercial, Financial and Agricultural	$	289		$	235		$	95		$	53		$	268		$	619		$	591
Real Estate - Construction		223			-			-			-			-			223			7
Real Estate - Commercial		26			-			155			-			25			181			315
Real Estate - Residential		44			65			264			111			106			373			669
Real Estate - Home Equity		333			45			52			106			112.00			430			427
Consumer		744			520			795			728			463			2,059			1,667
Total Charge-Offs	$	1,659		$	865		$	1,361		$	998		$	974		$	3,885		$	3,676

RECOVERIES
Commercial, Financial and Agricultural	$	86		$	58		$	74		$	128		$	78		$	218		$	331
Real Estate - Construction		-			-			-			25			-			-			1
Real Estate - Commercial		142			100			70			13			222			312			360
Real Estate - Residential		46			223			44			106			107			313			537
Real Estate - Home Equity		58			60			32			61			47			150			130
Consumer		277			251			284			199			272			812			765
Total Recoveries	$	609		$	692		$	504		$	532		$	726		$	1,805		$	2,124

NET CHARGE-OFFS	$	1,050		$	173		$	857		$	466		$	248		$	2,080		$	1,552

Net Charge-Offs as a % of Average Loans ⁽¹⁾		0.23	%		0.04	%		0.20	%		0.10	%		0.06	%		0.15	%		0.12	%

RISK ELEMENT ASSETS
Nonaccruing Loans	$	4,928		$	5,622		$	5,047		$	6,872		$	6,867
Other Real Estate Owned		526			1,010			1,902			2,229			2,720
Total Nonperforming Assets	$	5,454		$	6,632		$	6,949		$	9,101		$	9,587

Past Due Loans 30-89 Days	$	5,120		$	5,443		$	4,682		$	4,757		$	3,684
Past Due Loans 90 Days or More (accruing)		-			-			-			-			126
Classified Loans		21,323			26,406			22,219			22,889			27,039
Performing Troubled Debt Restructuring's	$	18,284		$	18,737		$	20,791		$	22,084		$	28,661

Nonperforming Loans as a % of Loans		0.27	%		0.30	%		0.28	%		0.39	%		0.39	%
Nonperforming Assets as a % of Loans and
Other Real Estate		0.30	%		0.36	%		0.39	%		0.51	%		0.54	%
Nonperforming Assets as a % of Total Assets		0.19	%		0.22	%		0.23	%		0.31	%		0.34	%

⁽¹⁾ Annualized


CAPITAL CITY BANK GROUP, INC.
AVERAGE BALANCE AND INTEREST RATES⁽¹⁾
*Unaudited*

		Third Quarter 2019							Second Quarter 2019							First Quarter 2019							Fourth Quarter 2018							Third Quarter 2018							Sep 2019 YTD							Sep 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	$	1,837,548			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	%	$	1,747,093			21,733	4.94	%	$	1,813,964			70,705	5.21	%	$	1,695,695			61,994	4.89	%

Investment Securities
Taxable Investment Securities		607,363			3,249	2.13			614,775			3,301	2.15			618,127			3,387	2.20			637,735			3,325	2.08			663,639			3,290	1.98			613,382			9,936	2.16			642,260			8,758	1.82
Tax-Exempt Investment Securities		18,041			73	1.63			29,342			116	1.58			40,575			158	1.56			50,362			193	1.54			60,952			229	1.50			29,237			347	1.59			72,656			813	1.49

Total Investment Securities		625,404			3,322	2.12			644,117			3,417	2.12			658,702			3,545	2.16			688,097			3,518	2.04			724,591			3,519	1.94			642,619			10,283	2.13			714,916			9,571	1.79

Funds Sold		207,129			1,142	2.19			251,789			1,507	2.40			265,694			1,593	2.43			80,815			461	2.26			63,608			302	1.88			241,323			4,242	2.35			153,767			1,949	1.69

Total Earning Assets		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	%		2,535,292		$	25,554	4.00	%		2,697,906		$	85,230	4.22	%		2,564,378		$	73,514	3.83	%

Cash and Due From Banks		50,981							51,832							53,848							52,344							49,493							52,210							50,844
Allowance for Loan Losses		(14,863	)						(14,513	)						(14,347	)						(14,642	)						(14,146	)						(14,576	)						(13,774	)
Other Assets		253,111							254,126							252,208							257,061							256,285							253,152							258,363

Total Assets	$	2,959,310						$	3,010,662						$	2,996,511						$	2,849,245						$	2,826,924						$	2,988,692						$	2,859,811

LIABILITIES:
Interest Bearing Deposits
NOW Accounts	$	749,678		$	1,235	0.65	%	$	832,982		$	1,623	0.78	%	$	884,277		$	1,755	0.80	%	$	739,225		$	995	0.53	%	$	733,255		$	773	0.42	%	$	821,819		$	4,613	0.75	%	$	795,112		$	2,157	0.36	%
Money Market Accounts		238,565			264	0.44			237,921			265	0.45			239,516			247	0.42			248,486			216	0.34			254,440			190	0.30			238,664			775	0.43			252,082			459	0.24
Savings Accounts		372,593			46	0.05			371,716			46	0.05			364,783			44	0.05			356,723			44	0.05			352,833			43	0.05			369,726			136	0.05			349,527			128	0.05
Time Deposits		111,447			51	0.18			115,442			54	0.19			118,839			53	0.18			123,193			57	0.18			129,927			62	0.19			115,215			159	0.18			134,781			187	0.19
Total Interest Bearing Deposits		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	%		1,470,455			1,068	0.30	%		1,545,424			5,683	0.49	%		1,531,502			2,931	0.27	%

Short-Term Borrowings		8,697			27	1.24	%		9,625			31	1.30	%		11,378			35	1.26	%		15,424			53	1.36	%		12,949			41	1.24	%		9,890			93	1.27	%		9,499			57	0.80	%
Subordinated Notes Payable		52,887			558	4.13			52,887			596	4.46			52,887			608	4.60			52,887			572	4.23			52,887			568	4.20			52,887			1,762	4.39			52,887			1,595	3.98
Other Long-Term Borrowings		7,158			63	3.47			7,509			66	3.53			8,199			72	3.55			9,918			85	3.40			12,729			92	2.87			7,619			201	3.52			13,218			286	2.89

Total Interest Bearing Liabilities		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	%		1,549,020		$	1,769	0.47	%		1,615,820		$	7,739	0.64	%		1,607,106		$	4,869	0.42	%

Noninterest Bearing Deposits		1,023,472							1,007,370							957,300							944,748							921,817							996,290							895,042
Other Liabilities		74,540							61,611							52,070							56,445							58,330							62,823							65,270

Total Liabilities		2,639,037							2,697,063							2,689,249							2,547,049							2,529,167							2,674,933							2,567,418

SHAREOWNERS' EQUITY:		320,273							313,599							307,262							302,196							297,757							313,759							292,393

Total Liabilities and Shareowners' Equity	$	2,959,310						$	3,010,662						$	2,996,511						$	2,849,245						$	2,826,924						$	2,988,692						$	2,859,811

Interest Rate Spread				$	26,333	3.67	%				$	26,116	3.59	%				$	25,042	3.49	%				$	24,513	3.58	%				$	23,785	3.53	%				$	77,491	3.58	%				$	68,645	3.41	%

Interest Income and Rate Earned⁽¹⁾					28,577	4.25						28,797	4.25						27,856	4.17						26,535	4.12						25,554	4.00						85,230	4.22						73,514	3.83
Interest Expense and Rate Paid⁽²⁾					2,244	0.33						2,681	0.40						2,814	0.42						2,022	0.31						1,769	0.28						7,739	0.38						4,869	0.25

Net Interest Margin				$	26,333	3.92	%				$	26,116	3.85	%				$	25,042	3.75	%				$	24,513	3.81	%				$	23,785	3.72	%				$	77,491	3.84	%				$	68,645	3.58	%

⁽¹⁾ Interest and average rates are calculated on a tax-equivalent basis using a 21% Federal tax rate.
⁽²⁾ Rate calculated based on average earning assets.

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

Source: Capital City Bank Group

Released October 29, 2019

Capital City Bank Group, Inc. Reports Third Quarter 2019 Results

Related Documents