EXHIBIT 99.1 CAPITAL CITY BANK GROUP, INC.'S PRESS RELEASE,
DATED APRIL 22, 2003
Capital City
Bank Group [LOGO]
NEWS RELEASE
For Immediate Release: April 22, 2003
Contact: J. Kimbrough Davis, 850-671-0300
Executive Vice President and Chief Financial Officer
Website: www.ccbg.com
CAPITAL CITY BANK GROUP, INC. REPORTS
FIRST QUARTER EARNINGS OF
$0.60 PER DILUTED SHARE, UP 25%
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1st QUARTER 2003 HIGHLIGHTS
* Quarterly earnings of $6.4 million, or $0.60 per share, an increase of
24.5% and 25.0%, respectively, from the first quarter of 2002.
* Net interest margin of 5.42%, an increase of 20 basis points driven by an
82 basis point reduction in cost of funds.
* Efficiency ratio of 62.48%, a 240 basis point improvement.
* Average loan growth of 5%.
* Increase in noninterest income of 22.7%, attributable to deposit fees and
mortgage banking revenues.
* Strong credit quality as indicated by a nonperforming assets ratio of .29%
and a net chargeoff ratio of .26%.
* Well capitalized with a Tier 1 capital ratio of 12.47%.
EARNINGS HIGHLIGHTS
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Three Months Ended
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March 31, December 31, March 31,
(Dollars in thousands, except per share data) 2003 2002 2002
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EARNINGS
Net Income $ 6,361 6,722 5,111
Diluted Earnings Per Common Share 0.60 0.63 0.48
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PERFORMANCE
Return on Average Equity 13.55% 14.38 11.81
Return on Average Assets 1.44 1.51 1.19
Net Interest Margin 5.42 5.44 5.22
Noninterest Income as % of Operating Revenue 32.40 34.46 29.48
Efficiency Ratio 62.48 62.08 64.88
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CAPITAL ADEQUACY
Tier 1 Capital Ratio 12.47% 12.03 11.65
Total Capital Ratio 13.44 13.00 12.65
Leverage Ratio 8.59 8.46 7.87
Equity to Assets 10.24 10.22 9.73
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ASSET QUALITY
Allowance as % of Non-Performing Loans 485.06% 497.72 421.19
Allowance as a % of Loans, Net 0.95 0.97 0.98
Net Charge-offs as % of Average Loans 0.26 0.25 0.26
Nonperforming Assets as % of Loans and ORE 0.29 0.30 0.35
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1
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Three Months Ended
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March 31, December 31, March 31,
(Dollars in thousands, except per share data) 2003 2002 2002
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STOCK PERFORMANCE
High $ 40.40 40.05 27.50
Low 33.51 27.83 22.65
Close 39.11 39.19 27.00
Average Daily Trading Volume (Shares) 8,829 10,494 10,579
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Information is unaudited.
Annualized
Tax-equivalent basis.
Calculated net of special charges (primarily conversion related) and intangible amortization.
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TALLAHASSEE, FL ---- Capital City Bank Group, Inc. (NASDAQ: CCBG) reported
earnings of $6.4 million, or $0.60 per diluted share. This compares to $5.1
million, or $0.48 per diluted share, in the first quarter of 2002, an
increase of 24.5% and 25.0%, respectively. The Return on Average Assets was
1.44% and the Return on Average Equity was 13.55%, compared to 1.19% and
11.81%, respectively, for the comparable period in 2002.
The increase in earnings was primarily attributable to 11.6% growth in
operating revenues due to growth in net interest income of 7.0% and
noninterest income of 22.7%. The net interest margin increased 20 basis
points over the first quarter of 2002 to a level of 5.42%, attributable to an
82 basis point reduction in the Company's cost of funds. Growth in
noninterest income resulted from increased service charge revenues,
reflecting the success of the overdraft protection program implemented in the
fourth quarter of 2002. Mortgage banking revenues remained strong and
continued to reflect the higher volume of fixed-rate residential mortgages
sold to the secondary market.
William G. Smith, Jr., President and CEO, stated, "Capital City turned in
another solid performance and we are pleased to have finished the quarter
slightly ahead of projections. Our strategy of serving small to midsize
markets has paid dividends, as these markets tend to be very stable,
particularly during less robust economic times. Capital City is well
positioned to react quickly to changing market conditions, and we are excited
about adding three new offices in 2003 to our growing franchise. We continue
to be optimistic about our markets and prospects for the remainder of this
year."
Net Interest Income was $1.4 million higher than the first quarter of 2002,
resulting primarily from a continued decline in the cost of funds. The
favorable impact of lower funding costs was partially offset by lower asset
yields. Growth and a shift in the mix of earning assets continued to add to
interest income, but were more than offset by declining yields attributable
to the low rate environment. The Company's net interest margin for the three
months ended March 31, 2003 was 5.42%, an increase of 20 basis points from
the comparable period in 2002 and down slightly from the fourth quarter of
2002. The margin percentage may decline slightly over the next quarter as
the historically low interest rates continue to prevail and drive earning
asset yields lower.
Provision for loan losses of $779,000 for the quarter was slightly lower than
the first quarter in 2002 due to continued improvement in the bank's overall
credit quality. Net charge-offs of $837,000, while up slightly over the
comparable period in 2002, remain at historically low levels. In both
periods net charge-offs represented .26% of average loans for the quarter.
2
Noninterest income improved $1.9 million from the first quarter of 2002,
driven by higher deposit fees and mortgage banking revenues. The higher
deposit fees are primarily attributable to an overdraft protection program
implemented during the fourth quarter of 2002. Mortgage banking revenues
grew 26.4% due to the continued growth in the volume of fixed rate loans sold
into the secondary market. Noninterest income represented 2.30% of average
assets for the first quarter of 2003. This is an increase of 38 basis points
from the 1.92% level reported in the comparable period in 2002. Both of
these revenue streams are expected to remain strong during the second
quarter.
Noninterest expense grew by $1.2 million, or 6.2%, in the first quarter of
2003. Higher compensation expense, resulting from higher pension costs,
medical insurance premiums and salaries, represented 70% of the increase.
Occupancy costs are anticipated to increase slightly as the Company expects
three full service offices to open during 2003.
Average earning assets increased from the first quarter of 2002 by $39.6
million, or 2.5%. The increase in earning assets was driven by a $59.8
million, or 4.9% growth in average loans. The Company continued to
experience a favorable shift in earning asset mix as average loans
represented 79.8% of earning assets, compared to 78.0% in the first quarter
of 2002. Loan demand remains strong in most markets.
Nonperforming assets of $3.8 million declined from the first quarter of 2002
by $500,000 and were constant with year-end 2002, representing .29% of total
loans and other real estate. This compares to .35% and .30%, respectively,
for the first and fourth quarters of 2002.
Average total deposits declined $59.5 million, or 4.1%, from the first
quarter in 2002 as certificates of deposit declined $134.3 million. This was
primarily a result of increased competition and the current interest rate
environment. This decline was partially offset by growth of nonmaturity
deposits, which created a favorable shift in the deposit mix and a positive
impact on the Bank's cost of funds.
The Company ended the first quarter with approximately $122.7 million in
average liquidity. This represents a minimal decline from the first quarter
of 2002 level of $127.6 million. The decline in certificates of deposit and
the purchase of investment securities were funded by borrowings from the
Federal Home Loan Bank and growth in nonmaturity deposits. Liquidity is
anticipated to decline slightly in the second quarter.
Capital City Bank Group, Inc., is a $1.9 billion financial services company
headquartered in Tallahassee, Florida, providing traditional deposit and
credit services, asset management, trust, mortgage banking, credit cards,
data processing, and securities brokerage services. Founded in 1895, the
Company has 53 banking offices, 69 ATMs and 10 Bank 'N Shop locations in 22
counties in Florida, Georgia, and Alabama.
"Safe Harbor" Statement under the Private Securities Litigation Reform Act of
1995: The matters discussed in this press release that are not historical
facts, contain forward-looking information with respect to strategic
initiatives. Such forward-looking statements are based on current plans and
expectations, which are subject to a certain number of uncertainties and
risks that have been described in Capital City Bank Group's annual report on
Form 10-K for the fiscal year ended December 31, 2002, and the Company's
other filings with the Securities and Exchange Commission. These
uncertainties and risks could cause future results to differ materially from
those anticipated by such statements.
6
CAPITAL CITY BANK GROUP, INC.
CONSOLIDATED STATEMENT OF INCOME
Unaudited
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2003 2002
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First Fourth Third Second First
(Dollars in thousands, except per share data) Quarter Quarter Quarter Quarter Quarter
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INTEREST INCOME
Interest and Fees on Loans $ 23,174 23,628 23,897 23,570 23,826
Interest on Investment Securities 1,811 2,033 2,324 2,637 2,699
Interest on Funds Sold 352 391 182 392 516
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Total Interest Income 25,337 26,052 26,403 26,599 27,041
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INTEREST EXPENSE
Interest on Deposits 3,226 3,894 4,496 5,314 6,847
Interest on Short-term Borrowings 329 236 194 177 160
Interest on Long-term Debt 545 537 256 202 190
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Total Interest Expense 4,100 4,667 4,946 5,693 7,197
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Net Interest Income 21,237 21,385 21,457 20,906 19,844
Provision for Loan Losses 779 863 991 641 802
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Net Interest Income after Provision for Loan Losses 20,458 20,522 20,466 20,265 19,042
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NONINTEREST INCOME
Service Charge Revenue 3,967 4,033 2,979 3,028 2,709
Data Processing Revenue 558 512 485 508 501
Asset Management Fees 605 631 585 675 630
Mortgage Banking Revenue 1,576 2,618 1,612 1,098 1,247
Other Fees 3,471 3,449 3,426 3,243 3,207
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Total Noninterest Income 10,177 11,243 9,087 8,552 8,294
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NONINTEREST EXPENSE
Compensation 11,370 11,267 10,888 10,516 10,544
Premises 1,369 1,477 1,363 1,485 1,394
FF&E 1,795 2,021 1,819 1,941 1,896
Intangible Amortization 811 811 810 810 811
Other Expense 5,325 5,799 5,646 5,580 4,820
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Total Noninterest Expense 20,670 21,375 20,526 20,332 19,465
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OPERATING PROFIT 9,965 10,390 9,027 8,485 7,871
Provision for Income Taxes 3,604 3,668 3,226 3,037 2,760
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NET INCOME $ 6,361 6,722 5,801 5,448 5,111
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PER SHARE DATA
Basic Earnings $ 0.60 0.63 0.55 0.52 0.48
Diluted Earnings 0.60 0.63 0.55 0.51 0.48
Cash Dividends 0.1700 0.1700 0.1525 0.1525 0.1525
AVERAGE SHARES
Basic 10,566 10,552 10,551 10,576 10,644
Diluted 10,603 10,591 10,590 10,606 10,675
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4
CAPITAL CITY BANK GROUP, INC.
CONSOLIDATED STATEMENT OF FINANCIAL CONDITION
Unaudited
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2003 2002
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First Fourth Third Second First
(Dollars in thousands) Quarter Quarter Quarter Quarter Quarter
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ASSETS
Cash and Due From Banks $ 85,976 89,823 87,613 83,008 70,975
Funds Sold 176,428 170,936 79,034 51,037 172,875
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Total Cash and Cash Equivalents 262,404 260,759 166,647 134,045 243,850
Investment Securities, Available-for-Sale 190,119 180,315 194,035 213,940 219,830
Loans, Net of Unearned 1,311,556 1,285,221 1,286,909 1,262,629 1,230,135
Allowance for Loan Losses (12,437) (12,495) (12,462) (12,227) (12,113)
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Loans, Net 1,299,119 1,272,726 1,274,447 1,250,402 1,218,022
Premises and Equipment 51,484 48,897 47,633 47,734 47,023
Intangible Assets 28,223 29,034 29,844 30,655 31,465
Other Assets 33,168 33,040 31,323 32,893 33,706
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Total Other Assets 112,875 110,971 108,800 111,282 112,194
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Total Assets $1,864,517 1,824,771 1,743,929 1,709,669 1,793,896
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LIABILITIES
Deposits:
Noninterest Bearing Deposits $ 426,269 406,081 396,946 388,348 389,889
Interest Bearing Deposits 1,032,801 1,028,119 1,006,837 1,049,339 1,101,633
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Total Deposits 1,459,070 1,434,200 1,403,783 1,437,687 1,491,522
Short-Term Borrowings 140,138 113,675 70,346 64,505 94,288
Long-Term Debt 53,651 71,745 66,987 13,063 13,316
Other Liabilities 20,644 18,620 20,838 17,324 20,210
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Total Liabilities 1,673,503 1,638,240 1,561,954 1,532,579 1,619,336
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SHAREOWNERS' EQUITY
Common Stock 106 106 106 106 106
Additional Paid-in-Capital 15,120 14,717 14,539 14,526 16,862
Retained Earnings 173,152 168,587 163,659 159,467 155,628
Accumulated Other Comprehensive Income 2,636 3,121 3,671 2,991 1,964
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Total Shareowners' Equity 191,014 186,531 181,975 177,090 174,560
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Total Liabilities and Owners' Equity $1,864,517 1,824,771 1,743,929 1,709,669 1,793,896
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OTHER BALANCE SHEET DATA
Earning Assets $1,678,103 1,636,472 1,559,978 1,527,606 1,622,840
Intangible Assets
Goodwill 6,680 6,680 6,680 6,680 6,680
Deposit Base 21,543 22,354 23,164 23,975 24,785
Interest Bearing Liabilities 1,226,590 1,213,539 1,144,170 1,126,907 1,209,237
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Book Value Per Diluted Share $ 18.02 17.60 17.18 16.74 16.38
Tangible Book Value Per Diluted Share 15.35 14.86 14.37 13.84 13.42
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Actual Basic Shares Outstanding 10,566 10,557 10,551 10,551 10,630
Actual Diluted Shares Outstanding 10,603 10,596 10,590 10,581 10,660
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CAPITAL CITY BANK GROUP, INC.
ALLOWANCE FOR LOAN LOSSES
AND NONPERFORMING ASSETS
Unaudited
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2003 2002
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First Fourth Third Second First
(Dollars in thousands) Quarter Quarter Quarter Quarter Quarter
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ALLOWANCE FOR LOAN LOSSES
Balance at Beginning of Period $ 12,495 12,462 12,227 12,113 12,096
Acquired Reserves 0 0 0 0 0
Provision for Loan Losses 779 863 991 640 802
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Net Charge-offs 837 830 756 526 785
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Balance at End of Period $ 12,437 12,495 12,462 12,227 12,113
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As a % of Loans 0.95% 0.97 0.97 0.97 0.98
As a % of Nonperforming Loans 485.06 497.72 504.42 430.98 421.19
As a % of Nonperforming Assets 329.89 325.14 340.50 345.50 281.59
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CHARGE-OFFS
Commercial, Financial and Agricultural $ 142 136 278 220 184
Real Estate - Construction 0 0 0 0 0
Real Estate - Mortgage 0 0 0 0 0
Real Estate - Residential 19 65 37 9 64
Consumer 887 874 760 753 892
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Total Charge-offs $ 1,048 1,075 1,075 982 1,140
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RECOVERIES
Commercial, Financial and Agricultural $ 14 14 21 56 46
Real Estate - Construction 0 0 0 0 0
Real Estate - Mortgage 0 20 0 0 0
Real Estate - Residential 0 1 1 35 1
Consumer 197 210 297 365 308
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Total Recoveries $ 211 245 319 456 355
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NET CHARGE-OFFS $ 837 830 756 526 785
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Net charge-offs as a % of Average Loans 0.26 0.25 0.24 0.17 0.26
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RISK ELEMENT ASSETS
Nonaccruing Loans $ 2,564 2,510 2,471 2,837 2,856
Restructured 0 0 0 0 20
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Total Nonperforming Loans 2,564 2,510 2,471 2,837 2,876
Other Real Estate 1,206 1,333 1,189 702 1,426
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Total Nonperforming Assets $ 3,770 3,843 3,660 3,539 4,302
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Past Due Loans 90 Days or More $ 1,685 2,453 723 681 640
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Nonperforming Loans as a % of Loans 0.20% 0.20 0.19 0.22 0.23
Nonperforming Assets as a % of
Loans and Other Real Estate 0.29 0.30 0.28 0.28 0.35
Nonperforming Assets as a % of Capital 1.85 1.93 1.88 1.87 2.30
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Annualized
Capital includes allowance for loan losses.
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CAPITAL CITY BANK GROUP, INC.
AVERAGE BALANCE AND INTEREST RATES
Unaudited
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First Quarter of 2003 Fourth Quarter 2002 Third Quarter 2002
------------------------- ------------------------- ------------------------
Average Average Average Average Average Average
(Dollars in thousands) Balance Interest Rate Balance Interest Rate Balance Interest Rate
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ASSETS:
Loans, Net of Unearned Interest $1,289,161 $23,220 7.30% 1,292,892 23,696 7.27 1,266,591 23,969 7.51
Investment Securities
Taxable Investment Securities 138,646 1,180 3.41 113,951 1,380 4.82 131,939 1,646 4.97
Tax-Exempt Investment Securities 64,772 955 5.89 66,610 986 5.92 68,692 1,022 5.95
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Total Investment Securities 203,418 2,135 4.21 180,561 2,366 5.23 200,631 2,668 5.32
Funds Sold 122,708 352 1.15 118,082 391 1.30 44,263 182 1.61
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Total Earning Assets 1,615,287 $25,707 6.45% 1,591,535 26,453 6.60 1,511,485 26,819 7.04
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Cash and Due From Banks 82,453 75,630 69,765
Allowance For Loan Losses (12,619) (12,634) (12,503)
Other Assets 111,536 107,643 109,873
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Total Assets $1,796,657 1,762,174 1,678,620
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LIABILITIES:
Interest Bearing Deposits
NOW Accounts $ 262,618 203 0.31% 255,452 293 0.45 240,032 324 0.54
Money Market Accounts 214,539 420 0.79 219,429 557 1.01 221,521 731 1.31
Savings Accounts 106,241 65 0.25 105,741 98 0.36 106,551 137 0.51
Time Deposits 434,825 2,539 2.37 444,798 2,946 2.63 462,139 3,304 2.84
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1,018,223 3,227 1.29 1,025,420 3,894 1.51 1,030,243 4,496 1.73
Short-Term Borrowings 106,798 329 1.25 83,119 235 1.12 64,915 194 1.19
Long-Term Debt 72,372 544 3.05 68,665 538 3.11 24,763 256 4.09
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Total Interest Bearing Liabilities 1,197,393 $ 4,100 1.39% 1,177,20 4,667 1.57 1,119,921 4,946 1.75
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Noninterest Bearing Deposits 389,540 379,398 358,153
Other Liabilities 19,308 20,160 19,636
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Total Liabilities 1,606,241 1,576,762 1,497,710
SHAREOWNERS' EQUITY: $ 190,416 185,412 180,910
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Total Liabilities and Shareowners' Equity $1,796,657 1,762,174 1,678,620
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Interest Rate Spread $21,607 5.06% 21,786 5.03 21,873 5.29
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Interest Income and Rate Earned $25,707 6.45 26,453 6.60 26,819 7.04
Interest Expense and Rate Paid 4,100 1.03 4,667 1.16 4,946 1.30
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Net Interest Margin $21,607 5.42% 21,786 5.44 21,873 5.74
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Interest and average rates are calculated on a tax-equivalent basis using the 35% Federal tax rate.
Rate calculated based on average earning assets.
7
CAPITAL CITY BANK GROUP, INC.
AVERAGE BALANCE AND INTEREST RATES
Unaudited
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Second Quarter of 2003 First Quarter 2002
------------------------- -------------------------
Average Average Average Average
(Dollars in thousands) Balance Interest Rate Balance Interest Rate
- -------------------------------------------- ------------------------- -------------------------
ASSETS:
Loans, Net of Unearned Interest $1,234,787 $23,646 7.68% 1,229,344 23,911 7.89
Investment Securities
Taxable Investment Securities 150,188 1,935 5.17 147,800 1,980 5.36
Tax-Exempt Investment Securities 69,472 1,051 6.06 70,933 1,074 6.06
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Total Investment Securities 219,660 2,986 5.44 218,733 3,054 5.60
Funds Sold 93,156 392 1.66 127,621 516 1.62
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Total Earning Assets 1,547,603 $27,024 7.00% 1,575,698 27,481 7.07
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Cash and Due From Banks 74,178 72,266
Allowance For Loan Losses (12,265) (12,231)
Other Assets 110,579 112,478
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Total Assets $1,720,095 1,748,211
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LIABILITIES:
Interest Bearing Deposits
NOW Accounts $ 241,059 323 0.54% 230,696 332 0.58
Money Market Accounts 234,454 823 1.41 221,751 793 1.45
Savings Accounts 105,396 134 0.51 102,125 131 0.52
Time Deposits 501,440 4,034 3.23 569,166 5,591 3.98
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1,082,349 5,314 1.97 1,123,738 6,847 2.47
Short-Term Borrowings 70,257 177 1.01 72,043 160 0.81
Long-Term Debt 13,924 202 5.83 13,801 190 5.57
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Total Interest Bearing Liabilities 1,166,530 $ 5,693 1.96% 1,209,582 7,197 2.41
-------------- ------------
Noninterest Bearing Deposits 358,266 343,519
Other Liabilities 18,621 19,625
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Total Liabilities 1,543,417 1,572,726
SHAREOWNERS' EQUITY: $ 176,678 175,485
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Total Liabilities and Shareowners' Equity $1,720,095 1,748,211
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Interest Rate Spread $21,331 5.04% 20,284 4.66
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Interest Income and Rate Earned $27,024 7.00 27,481 7.07
Interest Expense and Rate Paid 5,693 1.48 7,197 1.85
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Net Interest Margin $21,331 5.52% 20,284 5.22
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Interest and average rates are calculated on a tax-equivalent basis using the 35% Federal tax rate.
Rate calculated based on average earning assets.
8