Capital City Bank Group, Inc. Reports First Quarter 2018 Results
TALLAHASSEE, Fla., April 23, 2018 (GLOBE NEWSWIRE) -- Capital City Bank Group, Inc. (NASDAQ:CCBG) today reported net income of $5.8 million, or $0.34 per diluted share for the first quarter of 2018 compared to net income of $3,000, or $0.00 per diluted share for the fourth quarter of 2017, and $2.7 million, or $0.16 per diluted share for the first quarter of 2017.
Net income for the first quarter of 2018 included a $1.5 million, or $0.09 per diluted share tax benefit related to a 2017 plan year pension plan contribution. Net income for the fourth quarter of 2017 included a $4.1 million, or $0.24 per diluted share, income tax expense related to the re-measurement of our net deferred tax asset due to tax reform.
HIGHLIGHTS
- Net interest income up 1.3% sequentially and 10.3% over prior year
- 23 basis points cost of funds reflects the quality of our core deposit base (~ 35% noninterest bearing)
- Period-end loan growth 4.7% over prior year
- Continued efforts to restrain expense growth
- Net charge-offs of 20 basis points continues to reflect the quality of our loan portfolio
- Well capitalized with common equity tier 1 ratio of 13.4% and total risk based capital ratio of 17.0%
“I am very encouraged by first quarter results,” said William G. Smith, Jr., Chairman, President and CEO. “Florida is strong and the demographics of our markets are improving. We are once again on the offense following a number of years playing defense after the crisis. Loan growth, rising rates and a phenomenal core deposit base are all contributing to higher net interest income. While we may be nearing the point of inflection, credit quality continues to improve. Lowering our efficiency ratio is a top priority and we have multiple strategies in place to grow our revenues and manage expenses. There is always more to be done, but I am pleased with our progress as we continue to focus on strategies that will produce long term value for our shareowners.”
Compared to the fourth quarter of 2017, the $1.1 million decrease in operating profit reflected a $1.0 million increase in noninterest expense and lower noninterest income of $0.5 million, partially offset by higher net interest income of $0.3 million and a $0.1 million reduction in the loan loss provision.
Compared to the first quarter of 2017, the $1.4 million increase in operating profit was attributable to higher net interest income of $2.0 million, partially offset by lower noninterest income of $0.2 million and a $0.4 million increase in the loan loss provision.
Our return on average assets (“ROA”) was 0.81% and our return on average equity (“ROE”) was 8.14% for the first quarter of 2018 compared to 0.39% and 4.00%, respectively, for the first quarter of 2017.
Discussion of Operating Results
Tax-equivalent net interest income for the first quarter of 2018 was $21.9 million compared to $21.8 million for the fourth quarter of 2017 and $20.0 million for the first quarter of 2017. During the first quarter of 2018, overnight funds increased as a result of seasonal growth in our public fund deposits, and to a lesser degree, savings accounts. A portion of these overnight funds were used to fund growth in the loan and investment portfolios. The increase in tax-equivalent net interest income compared to the first quarter of 2017 reflected growth in the loan portfolio and higher rates earned on overnight funds, investment securities, and variable rate loans, partially offset by a higher cost on our negotiated rate deposits.
The federal funds target rate increased six times since December 2015 to 1.75% at the end of the first quarter of 2018, which positively affected our net interest income due to favorable repricing of our variable and adjustable rate earning assets. Although these increases have also resulted in higher rates paid on our negotiated rate deposits, we continue to prudently manage our overall cost of funds, which was 23 basis points for the first quarter of 2018, compared to 18 basis points for fourth quarter of 2017 and 13 basis points for the first quarter 2017. Despite highly competitive fixed-rate loan pricing across most markets, we continue to review our loan pricing and make adjustments where appropriate.
Our net interest margin for the first quarter of 2018 was 3.43%, a decrease of two basis points compared to the fourth quarter of 2017 and an increase of 22 basis points over the first quarter of 2017. Relative to both comparative periods, the average yield for each earning asset category improved. The decrease in the margin compared to the fourth quarter of 2017 was due to seasonal growth in our overnight funds, resulting in a slightly less favorable asset mix. The increase in the margin compared to the first quarter of 2017 was primarily attributable to loan growth and higher yields on overnight funds and investment securities, partially offset by higher rates on our negotiated rate deposits.
The provision for loan losses for the first quarter of 2018 was $0.7 million compared to $0.8 million for the fourth quarter of 2017 and $0.3 million for the first quarter of 2017. The higher provision compared to the first quarter of 2017 reflected higher loan charge-offs and growth in the loan portfolio. Net loan charge-offs for the first quarter of 2018 totaled $0.8 million compared to net loan charge-offs of $0.9 million for the fourth quarter of 2017 and $0.4 million for the first quarter of 2017. At March 31, 2018, the allowance for loan losses of $13.3 million represented 0.80% of outstanding loans (net of overdrafts) and provided coverage of 181% of nonperforming loans compared to 0.80% and 186%, respectively, at December 31, 2017 and 0.84% and 161%, respectively, at March 31, 2017.
Noninterest income for the first quarter of 2018 totaled $12.5 million and reflected decreases of $0.5 million, or 3.3%, from the fourth quarter of 2017 and $0.2 million, or 1.9%, from the first quarter of 2017. The decrease from both prior periods was primarily attributable to lower mortgage banking fees and generally reflected a seasonal slowdown in loan funding, and to a lesser extent, a lower margin on sold loans.
Noninterest expense for the first quarter of 2018 totaled $27.9 million, an increase of $1.0 million, or 3.8%, over the fourth quarter of 2017 attributable to higher compensation expense of $0.6 million, occupancy expense of $0.1 million, and other real estate owned expense of $0.3 million. The higher level of compensation expense was seasonal and reflected the reset of payroll taxes and incentives. The increase in occupancy expense was attributable to higher maintenance costs. Other real estate owned expense increased due to a valuation adjustment for one parcel of property.
We realized an income tax benefit of $0.2 million for the first quarter of 2018 which included a discrete tax benefit of $1.5 million resulting from the effect of federal tax reform, enacted in December 2017, on a pension plan contribution made in the first quarter of 2018 for the 2017 pension plan year. Absent this discrete item, our effective tax rate was approximately 24%. Income tax expense for the fourth quarter of 2017 was $6.7 million and included a $4.1 million discrete tax expense related to the re-measurement of our net deferred tax asset, also due to the federal tax reform enacted in December.
Discussion of Financial Condition
Average earning assets were $2.592 billion for the first quarter of 2018, an increase of $80.5 million, or 3.2%, over the fourth quarter of 2017, and an increase of $63.3 million, or 2.5%, over the first quarter of 2017. The change in earning assets over both periods reflected a higher level of total deposits.
We maintained an average net overnight funds (deposits with banks plus fed funds sold less fed funds purchased) sold position of $240.9 million during the first quarter of 2018 compared to $174.6 million in the fourth quarter of 2017 and $245.2 million in the first quarter of 2017. The change in the average net overnight funds compared to both prior periods is related to variances in deposit balances which are discussed in further detail below.
Average loans increased $6.9 million, or 0.4% when compared to the fourth quarter of 2017, and have grown $62.1 million, or 3.9% when compared to the first quarter of 2017. The average increase compared to the fourth quarter of 2017 primarily reflected growth in commercial mortgage, construction, and consumer loans, partially offset by a reduction in the remaining loan types. Average growth over the first quarter of 2017 was experienced in all loan categories, with the exception of commercial and home equity loans. A portion of this growth compared to the first quarter 2017 was attributable to three separate loan pool purchases totaling $28.9 million. The loans were individually reviewed and evaluated in accordance with our credit underwriting standards.
We continue to make minor modifications on some of our lending programs to mitigate the impact that consumer and business deleveraging has had on our portfolio. These programs, coupled with economic improvements in our anchor markets and strategic loan purchases, have helped increase overall loan growth.
Nonperforming assets (nonaccrual loans and OREO) totaled $10.6 million at March 31, 2018, a decrease of $0.5 million, or 4.3%, from December 31, 2017 and $7.2 million, or 40.2%, from March 31, 2017. Nonaccrual loans totaled $7.3 million at March 31, 2018, a $0.2 million increase over December 31, 2017 and a $1.0 million decrease from March 31, 2017. Nonaccrual loan additions totaled $3.8 million for the first quarter of 2018 compared to $5.6 million for the fourth quarter of 2017 and $2.9 million for the first quarter of 2017. The balance of OREO totaled $3.3 million at March 31, 2018, a decrease of $0.6 million and $6.2 million, respectively, from December 31, 2017 and March 31, 2017. For the first quarter of 2018, we added properties totaling $0.3 million, sold properties totaling $0.4 million, and recorded valuation adjustments totaling $0.5 million.
Average total deposits were $2.456 billion for the first quarter of 2018, an increase of $77.7 million, or 3.3% over the fourth quarter of 2017, and an increase of $48.8 million, or 2.0% over the first quarter of 2017. The increase in average deposits compared to the fourth quarter of 2017 reflected increases in negotiated NOW and savings accounts. Average deposits compared to first quarter of 2017 reflected strong growth in noninterest bearing deposits and savings accounts. Deposit levels remain strong, particularly given the increases in the fed funds rate. Average core deposits continue to experience growth. We monitor deposit rates on an ongoing basis as a prudent pricing discipline remains the key to managing our mix of deposits.
Average borrowings decreased $0.1 million compared to the fourth quarter of 2017 and decreased $4.6 million compared to the first quarter of 2017. Declines over both prior periods were primarily due to payoffs of FHLB advances, partially offset by increases in repurchase agreements.
Shareowners’ equity was $288.4 million at March 31, 2018, compared to $284.2 million at December 31, 2017 and $278.1 million at March 31, 2017. Our leverage ratio was 10.36%, 10.47%, and 9.95%, respectively, on these dates. Further, at March 31, 2018, our risk-adjusted capital ratio was 17.04% compared to 17.10% and 16.44% at December 31, 2017 and March 31, 2017, respectively. Our common equity tier 1 ratio was 13.43% at March 31, 2018, compared to 13.42% at December 31, 2017 and 12.77% at March 31, 2017. All of our capital ratios exceeded the threshold to be designated as “well-capitalized” under the Basel III capital standards.
About Capital City Bank Group, Inc.
Capital City Bank Group, Inc. (NASDAQ:CCBG) is one of the largest publicly traded financial holding companies headquartered in Florida and has approximately $2.9 billion in assets. We provide a full range of banking services, including traditional deposit and credit services, mortgage banking, asset management, trust, merchant services, bankcards and securities brokerage services. Our bank subsidiary, Capital City Bank, was founded in 1895 and now has 59 banking offices and 73 ATMs in Florida, Georgia and Alabama. For more information about Capital City Bank Group, Inc., visit www.ccbg.com.
FORWARD-LOOKING STATEMENTS
Forward-looking statements in this Press Release are based on current plans and expectations that are subject to uncertainties and risks, which could cause our future results to differ materially. The following factors, among others, could cause our actual results to differ: the accuracy of the financial statement estimates and assumptions; legislative or regulatory changes, including the Dodd-Frank Act, Basel III, and the ability to repay and qualified mortgage standards; fluctuations in inflation, interest rates, or monetary policies; the effects of security breaches and computer viruses that may affect our computer systems or fraud related to debit card products; changes in consumer spending and savings habits; our growth and profitability; the strength of the U.S. economy and the local economies where we conduct operations; the effects of a non-diversified loan portfolio, including the risks of geographic and industry concentrations; harsh weather conditions and man-made disasters; changes in the stock market and other capital and real estate markets; customer acceptance of third-party products and services; increased competition and its effect on pricing, including the long-term impact on our net interest margin from the repeal of Regulation Q; negative publicity and the impact on our reputation; technological changes, especially changes that allow out of market competitors to compete in our markets; changes in accounting; and our ability to manage the risks involved in the foregoing. Additional factors can be found in our Annual Report on Form 10-K for the fiscal year ended December 31, 2017, and our other filings with the SEC, which are available at the SEC’s internet site (http://www.sec.gov). Forward-looking statements in this Press Release speak only as of the date of the Press Release, and we assume no obligation to update forward-looking statements or the reasons why actual results could differ.
USE OF NON-GAAP FINANCIAL MEASURES
We present a tangible common equity ratio and a tangible book value per diluted share that removes the effect of goodwill resulting from merger and acquisition activity. We believe these measures are useful to investors because it allows investors to more easily compare our capital adequacy to other companies in the industry.
The GAAP to non-GAAP reconciliations are provided below.
| (Dollars in Thousands, except per share data) | Mar 31, 2018 | Dec 31, 2017 | Sep 30, 2017 | Jun 30, 2017 | Mar 31, 2017 | |||||||||||
| TANGIBLE COMMON EQUITY RATIO | ||||||||||||||||
| Shareowners' Equity (GAAP) | $ | 288,360 | $ | 284,210 | $ | 285,201 | $ | 281,513 | $ | 278,059 | ||||||
| Less: Goodwill (GAAP) | 84,811 | 84,811 | 84,811 | 84,811 | 84,811 | |||||||||||
| Tangible Shareowners' Equity (non-GAAP) | A | 203,549 | 199,399 | 200,390 | 196,702 | 193,248 | ||||||||||
| Total Assets (GAAP) | 2,924,832 | 2,898,794 | 2,790,842 | 2,814,843 | 2,895,531 | |||||||||||
| Less: Goodwill (GAAP) | 84,811 | 84,811 | 84,811 | 84,811 | 84,811 | |||||||||||
| Tangible Assets (non-GAAP) | B | $ | 2,840,021 | $ | 2,813,983 | $ | 2,706,031 | $ | 2,730,032 | $ | 2,810,720 | |||||
| Tangible Common Equity Ratio (non-GAAP) | A/B | 7.17 | % | 7.09 | % | 7.41 | % | 7.21 | % | 6.88 | % | |||||
| Actual Diluted Shares Outstanding (GAAP) | C | 17,088,419 | 17,071,107 | 17,045,326 | 17,025,148 | 16,978,681 | ||||||||||
| Tangible Book Value per Diluted Share (non-GAAP) | A/C | $ | 11.91 | $ | 11.68 | $ | 11.76 | $ | 11.55 | $ | 11.38 | |||||
| CAPITAL CITY BANK GROUP, INC. | |||||||||
| EARNINGS HIGHLIGHTS | |||||||||
| Unaudited | |||||||||
| Three Months Ended | |||||||||
| (Dollars in thousands, except per share data) | Mar 31, 2018 | Dec 31, 2017 | Mar 31, 2017 | ||||||
| EARNINGS | |||||||||
| Net Income | $ | 5,773 | $ | 3 | $ | 2,744 | |||
| Diluted Net Income Per Share | $ | 0.34 | $ | 0.00 | $ | 0.16 | |||
| PERFORMANCE | |||||||||
| Return on Average Assets | 0.81 | % | 0.00 | % | 0.39 | % | |||
| Return on Average Equity | 8.14 | % | 0.00 | % | 4.00 | % | |||
| Net Interest Margin | 3.43 | % | 3.45 | % | 3.21 | % | |||
| Noninterest Income as % of Operating Revenue | 36.44 | % | 37.51 | % | 39.19 | % | |||
| Efficiency Ratio | 81.07 | % | 77.50 | % | 85.33 | % | |||
| CAPITAL ADEQUACY | |||||||||
| Tier 1 Capital | 16.30 | % | 16.33 | % | 15.68 | % | |||
| Total Capital | 17.04 | % | 17.10 | % | 16.44 | % | |||
| Tangible Common Equity (1) | 7.17 | % | 7.09 | % | 6.88 | % | |||
| Leverage | 10.36 | % | 10.47 | % | 9.95 | % | |||
| Common Equity Tier 1 | 13.43 | % | 13.42 | % | 12.77 | % | |||
| Equity to Assets | 9.86 | % | 9.80 | % | 9.60 | % | |||
| ASSET QUALITY | |||||||||
| Allowance as % of Non-Performing Loans | 181.26 | % | 185.87 | % | 160.70 | % | |||
| Allowance as a % of Loans | 0.80 | % | 0.80 | % | 0.84 | % | |||
| Net Charge-Offs as % of Average Loans | 0.20 | % | 0.21 | % | 0.10 | % | |||
| Nonperforming Assets as % of Loans and ORE | 0.64 | % | 0.67 | % | 1.11 | % | |||
| Nonperforming Assets as % of Total Assets | 0.36 | % | 0.38 | % | 0.61 | % | |||
| STOCK PERFORMANCE | |||||||||
| High | $ | 26.50 | $ | 26.01 | $ | 21.79 | |||
| Low | 22.80 | 22.21 | 19.22 | ||||||
| Close | $ | 24.75 | $ | 22.94 | $ | 21.39 | |||
| Average Daily Trading Volume | 21,061 | 19,112 | 23,150 | ||||||
| (1) Tangible common equity ratio is a non-GAAP financial measure. For additional information, including a reconciliation to GAAP, refer to non-GAAP information previously noted. | |||||||||
| CAPITAL CITY BANK GROUP, INC. | |||||||||||||||
| CONSOLIDATED STATEMENT OF FINANCIAL CONDITION | |||||||||||||||
| Unaudited | |||||||||||||||
| 2018 | 2017 | ||||||||||||||
| (Dollars in thousands) | First Quarter | Fourth Quarter | Third Quarter | Second Quarter | First Quarter | ||||||||||
| ASSETS | |||||||||||||||
| Cash and Due From Banks | $ | 47,804 | $ | 58,419 | $ | 50,420 | $ | 72,801 | $ | 47,650 | |||||
| Funds Sold and Interest Bearing Deposits | 250,821 | 227,023 | 140,694 | 162,377 | 290,897 | ||||||||||
| Total Cash and Cash Equivalents | 298,625 | 285,442 | 191,114 | 235,178 | 338,547 | ||||||||||
| Investment Securities Available for Sale | 471,836 | 480,911 | 510,846 | 529,686 | 541,102 | ||||||||||
| Investment Securities Held to Maturity | 225,552 | 216,679 | 184,262 | 157,074 | 158,515 | ||||||||||
| Total Investment Securities | 697,388 | 697,590 | 695,108 | 686,760 | 699,617 | ||||||||||
| Loans Held for Sale | 4,845 | 4,817 | 7,800 | 8,213 | 7,498 | ||||||||||
| Loans, Net of Unearned Interest | |||||||||||||||
| Commercial, Financial, & Agricultural | 198,775 | 218,166 | 215,963 | 213,544 | 214,595 | ||||||||||
| Real Estate - Construction | 80,236 | 77,966 | 67,813 | 67,331 | 59,938 | ||||||||||
| Real Estate - Commercial | 551,309 | 535,707 | 527,331 | 519,140 | 503,868 | ||||||||||
| Real Estate - Residential | 307,050 | 308,159 | 306,272 | 302,072 | 295,406 | ||||||||||
| Real Estate - Home Equity | 223,994 | 229,513 | 228,499 | 230,995 | 231,300 | ||||||||||
| Consumer | 284,356 | 278,622 | 273,670 | 269,539 | 268,921 | ||||||||||
| Other Loans | 14,988 | 3,747 | 9,311 | 17,057 | 9,586 | ||||||||||
| Overdrafts | 1,187 | 1,612 | 1,479 | 1,518 | 1,345 | ||||||||||
| Total Loans, Net of Unearned Interest | 1,661,895 | 1,653,492 | 1,630,338 | 1,621,196 | 1,584,959 | ||||||||||
| Allowance for Loan Losses | (13,258 | ) | (13,307 | ) | (13,339 | ) | (13,242 | ) | (13,335 | ) | |||||
| Loans, Net | 1,648,637 | 1,640,185 | 1,616,999 | 1,607,954 | 1,571,624 | ||||||||||
| Premises and Equipment, Net | 90,939 | 91,698 | 92,345 | 92,495 | 93,755 | ||||||||||
| Goodwill | 84,811 | 84,811 | 84,811 | 84,811 | 84,811 | ||||||||||
| Other Real Estate Owned | 3,330 | 3,941 | 5,987 | 7,968 | 9,501 | ||||||||||
| Other Assets | 96,257 | 90,310 | 96,678 | 91,464 | 90,178 | ||||||||||
| Total Other Assets | 275,337 | 270,760 | 279,821 | 276,738 | 278,245 | ||||||||||
| Total Assets | $ | 2,924,832 | $ | 2,898,794 | $ | 2,790,842 | $ | 2,814,843 | $ | 2,895,531 | |||||
| LIABILITIES | |||||||||||||||
| Deposits: | |||||||||||||||
| Noninterest Bearing Deposits | $ | 890,482 | $ | 874,583 | $ | 870,644 | $ | 842,314 | $ | 836,011 | |||||
| NOW Accounts | 859,704 | 877,820 | 749,816 | 787,090 | 882,605 | ||||||||||
| Money Market Accounts | 257,422 | 239,212 | 249,964 | 265,032 | 263,080 | ||||||||||
| Regular Savings Accounts | 353,996 | 335,140 | 329,742 | 327,560 | 321,160 | ||||||||||
| Certificates of Deposit | 137,280 | 143,122 | 147,451 | 149,937 | 156,449 | ||||||||||
| Total Deposits | 2,498,884 | 2,469,877 | 2,347,617 | 2,371,933 | 2,459,305 | ||||||||||
| Short-Term Borrowings | 4,893 | 7,480 | 6,777 | 6,105 | 7,603 | ||||||||||
| Subordinated Notes Payable | 52,887 | 52,887 | 52,887 | 52,887 | 52,887 | ||||||||||
| Other Long-Term Borrowings | 13,333 | 13,967 | 15,047 | 15,631 | 16,460 | ||||||||||
| Other Liabilities | 66,475 | 70,373 | 83,313 | 86,774 | 81,217 | ||||||||||
| Total Liabilities | 2,636,472 | 2,614,584 | 2,505,641 | 2,533,330 | 2,617,472 | ||||||||||
| SHAREOWNERS' EQUITY | |||||||||||||||
| Common Stock | 171 | 170 | 170 | 170 | 170 | ||||||||||
| Additional Paid-In Capital | 37,343 | 36,674 | 35,892 | 35,522 | 34,859 | ||||||||||
| Retained Earnings | 283,990 | 279,410 | 275,013 | 271,646 | 268,934 | ||||||||||
| Accumulated Other Comprehensive Loss, Net of Tax | (33,144 | ) | (32,044 | ) | (25,874 | ) | (25,825 | ) | (25,904 | ) | |||||
| Total Shareowners' Equity | 288,360 | 284,210 | 285,201 | 281,513 | 278,059 | ||||||||||
| Total Liabilities and Shareowners' Equity | $ | 2,924,832 | $ | 2,898,794 | $ | 2,790,842 | $ | 2,814,843 | $ | 2,895,531 | |||||
| OTHER BALANCE SHEET DATA | |||||||||||||||
| Earning Assets | $ | 2,614,949 | $ | 2,582,922 | $ | 2,473,940 | $ | 2,478,546 | $ | 2,582,971 | |||||
| Interest Bearing Liabilities | 1,679,515 | 1,669,628 | 1,551,684 | 1,604,242 | 1,700,244 | ||||||||||
| Book Value Per Diluted Share | $ | 16.87 | $ | 16.65 | $ | 16.73 | $ | 16.54 | $ | 16.38 | |||||
| Tangible Book Value Per Diluted Share(1) | 11.91 | 11.68 | 11.76 | 11.55 | 11.38 | ||||||||||
| Actual Basic Shares Outstanding | 17,044 | 16,989 | 16,966 | 16,964 | 16,954 | ||||||||||
| Actual Diluted Shares Outstanding | 17,088 | 17,071 | 17,045 | 17,025 | 16,979 | ||||||||||
| (1) Tangible book value per diluted share is a non-GAAP financial measure. For additional information, including a reconciliation to GAAP, refer to non-GAAP information previously noted. | |||||||||||||||
| CAPITAL CITY BANK GROUP, INC. | ||||||||||||
| CONSOLIDATED STATEMENT OF OPERATIONS | ||||||||||||
| Unaudited | ||||||||||||
| 2018 | 2017 | |||||||||||
| (Dollars in thousands, except per share data) | First Quarter | Fourth Quarter | Third Quarter | Second Quarter | First Quarter | |||||||
| INTEREST INCOME | ||||||||||||
| Interest and Fees on Loans | $ | 19,535 | $ | 19,513 | $ | 19,479 | $ | 18,720 | $ | 18,005 | ||
| Investment Securities | 2,762 | 2,520 | 2,416 | 2,169 | 2,042 | |||||||
| Funds Sold | 917 | 594 | 446 | 533 | 493 | |||||||
| Total Interest Income | 23,214 | 22,627 | 22,341 | 21,422 | 20,540 | |||||||
| INTEREST EXPENSE | ||||||||||||
| Deposits | 868 | 590 | 530 | 388 | 281 | |||||||
| Short-Term Borrowings | 8 | 5 | 15 | 17 | 45 | |||||||
| Subordinated Notes Payable | 475 | 431 | 420 | 404 | 379 | |||||||
| Other Long-Term Borrowings | 100 | 112 | 115 | 117 | 99 | |||||||
| Total Interest Expense | 1,451 | 1,138 | 1,080 | 926 | 804 | |||||||
| Net Interest Income | 21,763 | 21,489 | 21,261 | 20,496 | 19,736 | |||||||
| Provision for Loan Losses | 745 | 826 | 490 | 589 | 310 | |||||||
| Net Interest Income after Provision for Loan Losses | 21,018 | 20,663 | 20,771 | 19,907 | 19,426 | |||||||
| NONINTEREST INCOME | ||||||||||||
| Deposit Fees | 4,872 | 5,040 | 5,153 | 5,052 | 5,090 | |||||||
| Bank Card Fees | 2,811 | 2,830 | 2,688 | 2,870 | 2,803 | |||||||
| Wealth Management Fees | 2,173 | 2,172 | 2,197 | 2,073 | 1,842 | |||||||
| Mortgage Banking Fees | 1,057 | 1,410 | 1,480 | 1,556 | 1,308 | |||||||
| Other | 1,564 | 1,445 | 1,478 | 1,584 | 1,675 | |||||||
| Total Noninterest Income | 12,477 | 12,897 | 12,996 | 13,135 | 12,718 | |||||||
| NONINTEREST EXPENSE | ||||||||||||
| Compensation | 16,366 | 15,740 | 16,349 | 16,292 | 16,496 | |||||||
| Occupancy, Net | 4,551 | 4,400 | 4,501 | 4,555 | 4,381 | |||||||
| Other Real Estate, Net | 626 | 355 | (118 | ) | 315 | 583 | ||||||
| Other | 6,363 | 6,402 | 5,975 | 6,759 | 6,462 | |||||||
| Total Noninterest Expense | 27,906 | 26,897 | 26,707 | 27,921 | 27,922 | |||||||
| OPERATING PROFIT | 5,589 | 6,663 | 7,060 | 5,121 | 4,222 | |||||||
| Income Tax (Benefit) Expense | (184 | ) | 6,660 | 2,505 | 1,560 | 1,478 | ||||||
| NET INCOME | $ | 5,773 | $ | 3 | $ | 4,555 | $ | 3,561 | $ | 2,744 | ||
| PER SHARE DATA | ||||||||||||
| Basic Net Income | $ | 0.34 | $ | 0.00 | $ | 0.27 | $ | 0.21 | $ | 0.16 | ||
| Diluted Net Income | 0.34 | 0.00 | 0.27 | 0.21 | 0.16 | |||||||
| Cash Dividend | $ | 0.07 | $ | 0.07 | $ | 0.07 | $ | 0.05 | $ | 0.05 | ||
| AVERAGE SHARES | ||||||||||||
| Basic | 17,028 | 16,967 | 16,965 | 16,955 | 16,919 | |||||||
| Diluted | 17,073 | 17,050 | 17,044 | 17,016 | 16,944 | |||||||
| CAPITAL CITY BANK GROUP, INC. | |||||||||||||||
| ALLOWANCE FOR LOAN LOSSES | |||||||||||||||
| AND RISK ELEMENT ASSETS | |||||||||||||||
| Unaudited | |||||||||||||||
| 2018 | 2017 | ||||||||||||||
| (Dollars in thousands, except per share data) | First Quarter | Fourth Quarter | Third Quarter | Second Quarter | First Quarter | ||||||||||
| ALLOWANCE FOR LOAN LOSSES | |||||||||||||||
| Balance at Beginning of Period | $ | 13,307 | $ | 13,339 | $ | 13,242 | $ | 13,335 | $ | 13,431 | |||||
| Provision for Loan Losses | 745 | 826 | 490 | 589 | 310 | ||||||||||
| Net Charge-Offs | 794 | 858 | 393 | 682 | 406 | ||||||||||
| Balance at End of Period | $ | 13,258 | $ | 13,307 | $ | 13,339 | $ | 13,242 | $ | 13,335 | |||||
| As a % of Loans | 0.80 | % | 0.80 | % | 0.82 | % | 0.81 | % | 0.84 | % | |||||
| As a % of Nonperforming Loans | 181.26 | % | 185.87 | % | 203.39 | % | 166.23 | % | 160.70 | % | |||||
| CHARGE-OFFS | |||||||||||||||
| Commercial, Financial and Agricultural | $ | 182 | $ | 664 | $ | 276 | $ | 324 | $ | 93 | |||||
| Real Estate - Construction | 7 | - | - | - | - | ||||||||||
| Real Estate - Commercial | 290 | 42 | 94 | 478 | 71 | ||||||||||
| Real Estate - Residential | 107 | 126 | 125 | 44 | 116 | ||||||||||
| Real Estate - Home Equity | 158 | 48 | 50 | - | 92 | ||||||||||
| Consumer | 695 | 577 | 455 | 537 | 624 | ||||||||||
| Total Charge-Offs | $ | 1,439 | $ | 1,457 | $ | 1,000 | $ | 1,383 | $ | 996 | |||||
| RECOVERIES | |||||||||||||||
| Commercial, Financial and Agricultural | $ | 166 | $ | 113 | $ | 79 | $ | 40 | $ | 81 | |||||
| Real Estate - Construction | 1 | - | 50 | - | - | ||||||||||
| Real Estate - Commercial | 123 | 24 | 69 | 58 | 23 | ||||||||||
| Real Estate - Residential | 84 | 141 | 60 | 202 | 213 | ||||||||||
| Real Estate - Home Equity | 61 | 67 | 84 | 39 | 29 | ||||||||||
| Consumer | 210 | 254 | 265 | 362 | 244 | ||||||||||
| Total Recoveries | $ | 645 | $ | 599 | $ | 607 | $ | 701 | $ | 590 | |||||
| NET CHARGE-OFFS | $ | 794 | $ | 858 | $ | 393 | $ | 682 | $ | 406 | |||||
| Net Charge-Offs as a % of Average Loans (1) | 0.20 | % | 0.21 | % | 0.10 | % | 0.17 | % | 0.10 | % | |||||
| RISK ELEMENT ASSETS | |||||||||||||||
| Nonaccruing Loans | $ | 7,314 | $ | 7,159 | $ | 6,558 | $ | 7,966 | $ | 8,298 | |||||
| Other Real Estate Owned | 3,330 | 3,941 | 5,987 | 7,968 | 9,501 | ||||||||||
| Total Nonperforming Assets | $ | 10,644 | $ | 11,100 | $ | 12,545 | $ | 15,934 | $ | 17,799 | |||||
| Past Due Loans 30-89 Days | $ | 4,268 | $ | 4,579 | $ | 5,687 | $ | 3,789 | $ | 3,263 | |||||
| Past Due Loans 90 Days or More | - | 36 | - | - | - | ||||||||||
| Classified Loans | 31,709 | 31,002 | 36,545 | 41,322 | 40,978 | ||||||||||
| Performing Troubled Debt Restructuring's | $ | 31,472 | $ | 32,164 | $ | 33,427 | $ | 35,436 | $ | 36,555 | |||||
| Nonperforming Loans as a % of Loans | 0.44 | % | 0.43 | % | 0.40 | % | 0.49 | % | 0.52 | % | |||||
| Nonperforming Assets as a % of Loans and Other Real Estate | 0.64 | % | 0.67 | % | 0.76 | % | 0.97 | % | 1.11 | % | |||||
| Nonperforming Assets as a % of Total Assets | 0.36 | % | 0.38 | % | 0.45 | % | 0.57 | % | 0.61 | % | |||||
| (1) Annualized | |||||||||||||||
| CAPITAL CITY BANK GROUP, INC. | ||||||||||||||||||||||||||||||||||||||||
| AVERAGE BALANCE AND INTEREST RATES(1) | ||||||||||||||||||||||||||||||||||||||||
| Unaudited | ||||||||||||||||||||||||||||||||||||||||
| First Quarter 2018 | Fourth Quarter 2017 | Third Quarter 2017 | Second Quarter 2017 | First Quarter 2017 | ||||||||||||||||||||||||||||||||||||
| (Dollars in thousands) |
Average Balance |
Interest |
Average Rate |
Average Balance |
Interest |
Average Rate |
Average Balance |
Interest |
Average Rate |
Average Balance |
Interest |
Average Rate |
Average Balance |
Interest |
Average Rate |
|||||||||||||||||||||||||
| ASSETS: | ||||||||||||||||||||||||||||||||||||||||
| Loans, Net of Unearned Interest | $ | 1,647,612 | $ | 19,636 | 4.83 | % | $ | 1,640,738 | $ | 19,696 | 4.76 | % | $ | 1,638,578 | $ | 19,672 | 4.76 | % | $ | 1,608,629 | 18,880 | 4.71 | % | $ | 1,585,561 | $ | 18,137 | 4.64 | % | |||||||||||
| Investment Securities | ||||||||||||||||||||||||||||||||||||||||
| Taxable Investment Securities | 619,137 | 2,523 | 1.64 | 602,353 | 2,263 | 1.50 | 588,518 | 2,150 | 1.45 | 591,825 | 1,898 | 1.28 | 600,528 | 1,784 | 1.20 | |||||||||||||||||||||||||
| Tax-Exempt Investment Securities | 84,800 | 318 | 1.50 | 94,329 | 393 | 1.67 | 98,463 | 407 | 1.65 | 100,742 | 414 | 1.64 | 97,965 | 396 | 1.62 | |||||||||||||||||||||||||
| Total Investment Securities | 703,937 | 2,841 | 1.62 | 696,682 | 2,656 | 1.52 | 686,981 | 2,557 | 1.48 | 692,567 | 2,312 | 1.34 | 698,493 | 2,180 | 1.26 | |||||||||||||||||||||||||
| Funds Sold | 240,916 | 917 | 1.54 | 174,565 | 594 | 1.35 | 140,728 | 446 | 1.26 | 200,834 | 533 | 1.06 | 245,153 | 493 | 0.81 | |||||||||||||||||||||||||
| Total Earning Assets | 2,592,465 | $ | 23,394 | 3.66 | % | 2,511,985 | $ | 22,946 | 3.63 | % | 2,466,287 | $ | 22,675 | 3.65 | % | 2,502,030 | $ | 21,725 | 3.48 | % | 2,529,207 | $ | 20,810 | 3.33 | % | |||||||||||||||
| Cash and Due From Banks | 52,711 | 51,235 | 51,880 | 52,312 | 48,906 | |||||||||||||||||||||||||||||||||||
| Allowance for Loan Losses | (13,651 | ) | (13,524 | ) | (13,542 | ) | (13,662 | ) | (13,436 | ) | ||||||||||||||||||||||||||||||
| Other Assets | 260,595 | 272,755 | 275,335 | 276,799 | 280,463 | |||||||||||||||||||||||||||||||||||
| Total Assets | $ | 2,892,120 | $ | 2,822,451 | $ | 2,779,960 | $ | 2,817,479 | $ | 2,845,140 | ||||||||||||||||||||||||||||||
| LIABILITIES: | ||||||||||||||||||||||||||||||||||||||||
| Interest Bearing Deposits | ||||||||||||||||||||||||||||||||||||||||
| NOW Accounts | $ | 863,175 | $ | 659 | 0.31 | % | $ | 782,133 | $ | 400 | 0.20 | % | $ | 755,620 | $ | 339 | 0.18 | % | $ | 806,621 | $ | 222 | 0.11 | % | $ | 880,707 | $ | 134 | 0.06 | % | ||||||||||
| Money Market Accounts | 246,576 | 103 | 0.17 | 249,953 | 80 | 0.13 | 262,486 | 80 | 0.12 | 261,726 | 57 | 0.09 | 259,106 | 35 | 0.06 | |||||||||||||||||||||||||
| Savings Accounts | 343,987 | 42 | 0.05 | 333,703 | 41 | 0.05 | 327,675 | 40 | 0.05 | 322,833 | 39 | 0.05 | 311,212 | 38 | 0.05 | |||||||||||||||||||||||||
| Time Deposits | 140,359 | 64 | 0.18 | 145,622 | 69 | 0.19 | 148,652 | 71 | 0.19 | 152,811 | 70 | 0.18 | 158,289 | 74 | 0.19 | |||||||||||||||||||||||||
| Total Interest Bearing Deposits | 1,594,097 | 868 | 0.23 | % | 1,511,411 | 590 | 0.16 | % | 1,494,433 | 530 | 0.14 | % | 1,543,991 | 388 | 0.10 | % | 1,609,314 | 281 | 0.07 | % | ||||||||||||||||||||
| Short-Term Borrowings | 8,869 | 8 | 0.37 | % | 8,074 | 5 | 0.25 | % | 9,920 | 15 | 0.59 | % | 8,957 | 17 | 0.75 | % | 12,810 | 45 | 1.43 | % | ||||||||||||||||||||
| Subordinated Notes Payable | 52,887 | 475 | 3.60 | 52,887 | 431 | 3.19 | 52,887 | 420 | 3.11 | 52,887 | 404 | 3.02 | 52,887 | 379 | 2.86 | |||||||||||||||||||||||||
| Other Long-Term Borrowings | 13,787 | 100 | 2.93 | 14,726 | 112 | 3.01 | 15,427 | 115 | 2.95 | 16,065 | 117 | 2.93 | 14,468 | 99 | 2.77 | |||||||||||||||||||||||||
| Total Interest Bearing Liabilities | 1,669,640 | $ | 1,451 | 0.37 | % | 1,587,098 | $ | 1,138 | 0.29 | % | 1,572,667 | $ | 1,080 | 0.28 | % | 1,621,900 | $ | 926 | 0.23 | % | 1,689,479 | $ | 804 | 0.20 | % | |||||||||||||||
| Noninterest Bearing Deposits | 862,009 | 867,000 | 834,729 | 829,432 | 797,964 | |||||||||||||||||||||||||||||||||||
| Other Liabilities | 72,969 | 80,309 | 87,268 | 84,486 | 79,208 | |||||||||||||||||||||||||||||||||||
| Total Liabilities | 2,604,618 | 2,534,407 | 2,494,664 | 2,535,818 | 2,566,651 | |||||||||||||||||||||||||||||||||||
| SHAREOWNERS' EQUITY: | 287,502 | 288,044 | 285,296 | 281,661 | 278,489 | |||||||||||||||||||||||||||||||||||
| Total Liabilities and Shareowners' Equity | $ | 2,892,120 | $ | 2,822,451 | $ | 2,779,960 | $ | 2,817,479 | $ | 2,845,140 | ||||||||||||||||||||||||||||||
| Interest Rate Spread | $ | 21,943 | 3.29 | % | $ | 21,808 | 3.33 | % | $ | 21,595 | 3.37 | % | $ | 20,799 | 3.25 | % | $ | 20,006 | 3.14 | % | ||||||||||||||||||||
| Interest Income and Rate Earned(1) | 23,394 | 3.66 | 22,946 | 3.63 | 22,675 | 3.65 | 21,725 | 3.48 | 20,810 | 3.33 | ||||||||||||||||||||||||||||||
| Interest Expense and Rate Paid(2) | 1,451 | 0.23 | 1,138 | 0.18 | 1,080 | 0.17 | 926 | 0.15 | 804 | 0.13 | ||||||||||||||||||||||||||||||
| Net Interest Margin | $ | 21,943 | 3.43 | % | $ | 21,808 | 3.45 | % | $ | 21,595 | 3.48 | % | $ | 20,799 | 3.33 | % | $ | 20,006 | 3.21 | % | ||||||||||||||||||||
| (1) Interest and average rates are calculated on a tax-equivalent basis using a 25% Federal tax rate for 2018 and a 35% Federal tax rate for 2017. | ||||||||||||||||||||||||||||||||||||||||
| (2) Rate calculated based on average earning assets. | ||||||||||||||||||||||||||||||||||||||||
For Information Contact:
J. Kimbrough Davis
Executive Vice President and Chief Financial Officer
850.402.7820
Released April 23, 2018