Exhibit 99.1 Capital City Bank Group, Inc.'s Press Release, dated April 27, 2004 Capital City Bank Group [CCBG LOGO] For Information Contact: Corporate Headquarters J. Kimbrough Davis 217 North Monroe Street Executive Vice President Tallahassee, FL 32301 Chief Financial Officer (850) 671-0610 NEWS RELEASE For Immediate Release: April 27, 2004 CAPITAL CITY BANK GROUP, INC. REPORTS FIRST QUARTER EARNINGS OF $0.37 PER DILUTED SHARE - ----------------------------------------------------------------------------- HIGHLIGHTS * Quarterly earnings totaled $4.8 million, or $0.37 per share, a decrease of 23.8% and 22.9%, respectively, over the first quarter of 2003. * Net interest margin is stabilizing as reflected by a 3 basis point improvement over the fourth quarter of 2003 - net interest margin of 4.88% continues to significantly exceed peer group. * Credit quality remains strong as indicated by a nonperforming asset ratio of .20%, down from .54% at year-end, and a net charge-off ratio of .29%. * Integration of recent acquisition (Quincy State Bank) during the first quarter is expected to contribute $.10 - $.12 to earnings per share over the next twelve months. EARNINGS HIGHLIGHTS
- ------------------------------------------------------------------------------------------ Three Months Ended ------------------------------------ Mar. 31, Dec. 31, Mar. 31, (Dollars in thousands, except per share data) 2004 2003 2003 - --------------------------------------------------------------------------------------- EARNINGS Net Income $ 4,847 6,096 6,361 Diluted Earnings Per Common Share 0.37 0.46 0.48 - --------------------------------------------------------------------------------------- PERFORMANCE Return on Average Equity 9.45% 11.98 13.55 Return on Average Assets 1.06 1.33 1.44 Net Interest Margin 4.88 4.85 5.17 Noninterest Income as % of Operating Revenue 33.64 35.03 32.96 Efficiency Ratio 68.06 64.58 60.96 - --------------------------------------------------------------------------------------- CAPITAL ADEQUACY Tier 1 Capital Ratio 11.09% 12.88 12.47 Total Capital Ratio 12.01 13.79 13.44 Leverage Ratio 8.38 9.51 8.59 Equity to Assets 10.57 10.98 10.24 - --------------------------------------------------------------------------------------- - --------------------------------------------------------------------------------------- Three Months Ended ------------------------------------ Mar. 31, Dec. 31, Mar. 31, (Dollars in thousands, except per share data) 2004 2003 2003 - --------------------------------------------------------------------------------------- ASSET QUALITY Allowance as % of Non-Performing Loans 717.20% 529.80 485.06 Allowance as a % of Loans, Net 0.94 0.93 0.95 Net Charge-offs as % of Average Loans 0.29 0.25 0.26 Nonperforming Assets as % of Loans and ORE 0.20 0.54 0.29 - --------------------------------------------------------------------------------------- STOCK PERFORMANCE High $ 45.55 46.83 32.32 Low 39.05 36.62 26.81 Close $ 41.25 45.99 31.29 Average Daily Trading Volume (Shares) 8,328 10,586 11,037 - ---------------------------------------------------------------------------------------
TALLAHASSEE, FL ---- Capital City Bank Group, Inc. (NASDAQ: CCBG) reported earnings for the first quarter totaling $4.8 million, or $0.37 per diluted share. This compares to $6.4 million, or $0.48 per diluted share in the first quarter of 2003, a decrease of 23.8% and 22.9%, respectively. The Return on Average Assets was 1.06% and the Return on Average Equity was 9.45%, compared to 1.44% and 13.55%, respectively, for the comparable period in 2003. The decrease in earnings was primarily attributable to a decline in the net interest margin of 5.6% and an increase in noninterest expense of 8.5%. The decline in the net interest margin reflects lower earning asset yields. Higher expense for associate salaries, occupancy, and professional fees drove the increase in noninterest expense. William G. Smith, Jr., President and CEO, stated, "Earnings of $.37 per share were $.04 per share below internal projections. The first quarter was marked by an uneven transition from fee based secondary market residential production to loan portfolio growth from other categories and the resulting improvement in net interest margin. Our expectation for year over year growth in earnings in the moderate single digit range remains achievable." Net interest income in the first quarter was down $735,000, or 3.6% compared to the first quarter of 2003, due to declining earning asset yields driven by the continued low interest rate environment. The net interest margin declined 29 basis points from the first quarter of 2003 to a level of 4.88%, attributable to a 54 basis point decline in earning asset yields partially offset by an improvement in the cost of funds of 25 basis points. Pressure on the margin during 2003 began to stabilize in the first quarter of 2004 producing an improvement in the net interest margin of 3 basis points over the fourth quarter of 2003. Earning asset yields remained stable and funding costs were slightly lower during the first quarter compared to the prior quarter. Compared to the fourth quarter of 2003, taxable equivalent net interest income declined $210,000, or 1.0%, directly attributable to one less calendar day. Asset yields priced down during the first quarter, but growth in the loan portfolio offset this unfavorable rate variance. Provision for loan losses of $961,000 for the quarter was higher than the first quarter of 2003 due to an increase in net charge-offs. Net charge-offs totaled $977,000, or .29% of average loans for the quarter compared to $837,000, or .26% for the first quarter of 2003. At year-end the allowance for loan losses was .94% of outstanding loans and provided coverage of 717% of nonperforming loans. Noninterest income declined $64,000, or .65%, from the first quarter of 2003 primarily due to lower mortgage banking revenues. This decline was partially offset by higher fees for trust services, data processing, and other income (gain on sale of other real estate and merchant fees). Mortgage banking revenues were below expectations, reflecting a slow-down in residential lending markets, which occurred during the latter part of the fourth quarter and continued through the first quarter of 2004. This declining trend stabilized in March as production improved consistent with management expectations and the residential pipeline increased 70% over year-end. With the residential pipeline building nicely, management expects mortgage revenues to improve in the second quarter. Recently acquired trust assets from Synovus Trust Company Bank are expected to enhance trust service fees. In the first quarter, noninterest income was 2.2% of average assets, a 7 basis point decline from 2003, and represented 33.6% of operating revenue, a 68 basis point improvement over 2003. Noninterest expense grew by $1.6 million, or 8.5%, in the first quarter of 2004. Higher expense for compensation, occupancy, and professional fees were the primary reasons for the increase. The increase in compensation was driven by higher associate salaries, reflecting annual merit raises for associates, payroll taxes, and pension expense. The increase in occupancy was driven by higher depreciation, premises rental, and maintenance/repair expense. Consulting projects, which vary as to their magnitude and timing, led to higher professional fees in 2004 as compared to the comparable quarter in 2003. Assets and liability balances include Quincy State Bank, which was acquired on March 19, 2004. The impact on average balances was not material due to the size of the acquisition and the limited time it was on the books during the first quarter. Average earning assets for the quarter increased $19.1 million, or 1.2%, over the comparable period in 2003. The increase in earning assets was driven by a $68.0 million, or 5.3% increase in average loans. Both commercial and real estate loans (commercial mortgage and home equity) realized strong gains. Offsetting the increase in average loans were decreases in short-term investments of $21.4 million, or 17.5%, and investment securities of $27.4 million, or 13.5%. The second quarter of 2004 begins with loans outstanding on budget and the pipeline of residential loans showing good growth. Nonperforming assets of $3.0 million declined from the first quarter of 2003 by $785,000 and represented .20% of total loans and other real estate at quarter-end. This compares to .29% and .54%, respectively, for the first and fourth quarters of 2003. During the first quarter of 2004, the bank resolved a $3.9 million problem asset and recognized a gain on sale of other real estate of $211,000. Average total deposits increased $49.4 million, or 3.51%, from the first quarter of 2003 driven by a $44.2 million increase in nonmaturity deposits that resulted in a favorable shift in deposit mix and a positive impact on the Company's cost of funds. The Company ended the first quarter with approximately $84.3 million in average net overnight funds as compared to $109.3 million in the first quarter of 2003. The decrease reflects loan growth and the use of cash to fund the recent acquisition of Quincy State Bank. The Company anticipates liquidity to decline in the second quarter due to funding of planned loan growth. Capital City Bank Group, Inc. is a $2.0 billion financial services company headquarted in Tallahassee, Florida, providing traditional deposit and credit services, asset management, trust, mortgage banking, merchant services, bankcards, data processing and securities brokerage services. Founded in 1895, the Company has 57 banking offices, 73 ATMs and 11 Bank 'N Shop locations in 22 counties in Florida, Georgia, and Alabama. The Company also has four mortgage lending offices located in four additional Florida communities. "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 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, 2003, 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.
CAPITAL CITY BANK GROUP, INC. CONSOLIDATED STATEMENT OF INCOME Unaudited - ---------------------------------------------------------------------------------------------------------------- 2004 2003 --------- -------------------------------------------- First Fourth Third Second First (Dollars in thousands, except per share data) Quarter Quarter Quarter Quarter Quarter - ---------------------------------------------------------------------------------------------------------------- INTEREST INCOME Interest and Fees on Loans $ 21,272 21,398 21,747 22,126 22,164 Interest on Investment Securities 1,176 1,350 1,434 1,539 1,811 Interest on Funds Sold 222 274 303 332 352 - ---------------------------------------------------------------------------------------------------------------- Total Interest Income 22,670 23,022 23,484 23,997 24,327 - ---------------------------------------------------------------------------------------------------------------- INTEREST EXPENSE Interest on Deposits 2,394 2,558 2,729 3,053 3,226 Interest on Short-term Borrowings 287 319 282 340 329 Interest on Long-term Debt 497 462 495 501 545 - ---------------------------------------------------------------------------------------------------------------- Total Interest Expense 3,178 3,339 3,506 3,894 4,100 - ---------------------------------------------------------------------------------------------------------------- Net Interest Income 19,492 19,683 19,978 20,103 20,227 Provision for Loan Losses 961 850 921 886 779 - ---------------------------------------------------------------------------------------------------------------- Net Interest Income after Provision for Loan Losses 18,531 18,833 19,057 19,217 19,448 ================================================================================================================ NONINTEREST INCOME Service Charge Revenue 3,944 4,155 4,123 4,074 3,967 Data Processing Revenue 633 656 578 611 558 Asset Management Fees 741 735 660 650 605 Mortgage Banking Revenue 694 1,140 2,066 1,540 1,344 Other Fees 3,869 3,928 3,525 3,553 3,471 - ---------------------------------------------------------------------------------------------------------------- Total Noninterest Income 9,881 10,614 10,952 10,428 9,945 ================================================================================================================ NONINTEREST EXPENSE Compensation 10,740 10,016 10,551 9,766 10,128 Premises 1,617 1,504 1,589 1,510 1,369 FF&E 2,063 2,123 2,048 1,874 1,795 Intangible Amortization 826 810 810 810 811 Other Expense 5,829 6,140 5,186 5,556 5,325 - ---------------------------------------------------------------------------------------------------------------- Total Noninterest Expense 21,075 20,593 20,184 19,516 19,428 ================================================================================================================ OPERATING PROFIT 7,337 8,854 9,825 10,129 9,965 Provision for Income Taxes 2,490 2,758 3,529 3,689 3,604 - ---------------------------------------------------------------------------------------------------------------- NET INCOME $ 4,847 6,096 6,296 6,440 6,361 ================================================================================================================ PER SHARE DATA Basic Earnings $ 0.37 0.47 0.47 0.49 0.48 Diluted Earnings 0.37 0.46 0.47 0.49 0.48 Cash Dividends 0.180 0.180 0.170 0.170 0.136 AVERAGE SHARES Basic 13,262 13,223 13,221 13,209 13,207 Diluted 13,286 13,265 13,260 13,255 13,253 ================================================================================================================
CAPITAL CITY BANK GROUP, INC. CONSOLIDATED STATEMENT OF FINANCIAL CONDITION Unaudited ================================================================================================================ 2004 2003 ---------- -------------------------------------------- First Fourth Third Second First (Dollars in thousands) Quarter Quarter Quarter Quarter Quarter - ---------------------------------------------------------------------------------------------------------------- ASSETS Cash and Due From Banks $ 93,427 93,140 105,407 98,388 85,976 Funds Sold 90,469 125,452 161,579 168,773 176,428 - ---------------------------------------------------------------------------------------------------------------- Total Cash and Cash Equivalents 183,896 218,592 266,986 267,161 262,404 Investment Securities, Available-for-Sale 188,763 181,734 162,734 170,745 190,119 Loans, Net of Unearned 1,465,804 1,341,632 1,322,888 1,332,387 1,311,556 Allowance for Loan Losses (13,720) (12,429) (12,424) (12,434) (12,437) - ---------------------------------------------------------------------------------------------------------------- Loans, Net 1,452,084 1,329,203 1,310,464 1,319,953 1,299,119 Premises and Equipment 56,394 54,011 55,347 53,132 51,484 Intangible Assets 41,512 25,792 26,603 27,413 28,223 Other Assets 34,604 37,170 32,289 32,186 33,168 - ---------------------------------------------------------------------------------------------------------------- Total Other Assets 132,510 116,973 114,239 112,731 112,875 - ---------------------------------------------------------------------------------------------------------------- Total Assets $1,957,253 1,846,502 1,854,423 1,870,590 1,864,517 ================================================================================================================ LIABILITIES Deposits: Noninterest Bearing Deposits $ 482,703 455,550 456,302 456,050 426,269 Interest Bearing Deposits 1,088,963 1,018,655 1,029,139 1,042,527 1,032,801 - ---------------------------------------------------------------------------------------------------------------- Total Deposits 1,571,666 1,474,205 1,485,441 1,498,577 1,459,070 Short-Term Borrowings 112,343 108,184 112,255 101,629 140,138 Long-Term Debt 49,950 46,475 38,016 57,664 53,651 Other Liabilities 16,366 14,829 19,820 17,251 20,644 - ---------------------------------------------------------------------------------------------------------------- Total Liabilities 1,750,325 1,643,693 1,655,532 1,675,121 1,673,503 - ---------------------------------------------------------------------------------------------------------------- SHAREOWNERS' EQUITY Common Stock 132 132 132 132 106 Additional Paid-in-Capital 17,788 16,157 15,578 15,447 15,120 Retained Earnings 187,592 185,134 181,395 177,346 173,152 Accumulated Other Comprehensive Income 1,416 1,386 1,786 2,544 2,636 - ---------------------------------------------------------------------------------------------------------------- Total Shareowners' Equity 206,928 202,809 198,891 195,469 191,014 - ---------------------------------------------------------------------------------------------------------------- Total Liabilities and Shareowners' Equity $1,957,253 1,846,502 1,854,423 1,870,590 1,864,517 ================================================================================================================ OTHER BALANCE SHEET DATA Earning Assets $1,745,036 1,648,818 1,647,201 1,671,905 1,678,103 Intangible Assets Goodwill 19,633 6,680 6,680 6,680 6,680 Deposit Base 20,683 19,112 19,923 20,733 21,543 Other 1,196 - - - - Interest Bearing Liabilities 1,251,256 1,173,314 1,179,410 1,201,820 1,226,590 - ---------------------------------------------------------------------------------------------------------------- Book Value Per Diluted Share $ 15.54 15.27 15.00 14.73 14.42 Tangible Book Value Per Diluted Share 12.43 13.33 13.00 12.67 12.28 - ---------------------------------------------------------------------------------------------------------------- Actual Basic Shares Outstanding 13,273 13,236 13,222 13,221 13,207 Actual Diluted Shares Outstanding 13,312 13,280 13,256 13,267 13,254 ================================================================================================================
CAPITAL CITY BANK GROUP, INC. ALLOWANCE FOR LOAN LOSSES AND NONPERFORMING ASSETS Unaudited ================================================================================================================ 2004 2003 ---------- -------------------------------------------- First Fourth Third Second First (Dollars in thousands) Quarter Quarter Quarter Quarter Quarter - ---------------------------------------------------------------------------------------------------------------- ALLOWANCE FOR LOAN LOSSES Balance at Beginning of Period $ 12,429 12,424 12,434 12,437 12,495 Acquired Reserves 1,307 0 0 0 0 Provision for Loan Losses 961 850 921 886 779 Net Charge-offs 977 845 931 889 837 - ---------------------------------------------------------------------------------------------------------------- Balance at End of Period $ 13,720 12,429 12,424 12,434 12,437 ================================================================================================================ As a % of Loans 0.94% 0.93 0.94 0.93 0.95 As a % of Nonperforming Loans 717.20 529.80 183.35 331.15 485.06 As a % of Nonperforming Assets 459.63 170.24 148.51 244.73 329.89 ================================================================================================================ CHARGE-OFFS Commercial, Financial and Agricultural $ 167 46 61 177 142 Real Estate - Construction 0 0 0 0 0 Real Estate - Mortgage 39 0 91 0 0 Real Estate - Residential 83 58 119 32 19 Consumer 1,047 1,054 937 916 887 - ---------------------------------------------------------------------------------------------------------------- Total Charge-offs $ 1,336 1,158 1,208 1,125 1,048 ================================================================================================================ RECOVERIES Commercial, Financial and Agricultural $ 12 13 73 42 14 Real Estate - Construction 0 0 0 0 0 Real Estate - Mortgage 0 0 0 0 0 Real Estate - Residential 0 17 0 0 0 Consumer 347 283 204 194 197 - ---------------------------------------------------------------------------------------------------------------- Total Recoveries $ 359 313 277 236 211 ================================================================================================================ NET CHARGE-OFFS $ 977 845 931 889 837 ================================================================================================================ Net charge-offs as a % of Average Loans 0.29% 0.25 0.28 0.27 0.26 ================================================================================================================ RISK ELEMENT ASSETS Nonaccruing Loans $ 1,913 2,346 6,776 3,755 2,564 Restructured 0 0 0 0 0 - ---------------------------------------------------------------------------------------------------------------- Total Nonperforming Loans 1,913 2,346 6,776 3,755 2,564 Other Real Estate 1,072 4,955 1,590 1,326 1,206 - ---------------------------------------------------------------------------------------------------------------- Total Nonperforming Assets $ 2,985 7,301 8,366 5,081 3,770 ================================================================================================================ Past Due Loans 90 Days or More $ 1,351 328 410 1,976 1,685 ================================================================================================================ Nonperforming Loans as a % of Loans 0.13% 0.17 0.51 0.28 0.20 Nonperforming Assets as a % of Loans and Other Real Estate 0.20 0.54 0.63 0.38 0.29 Nonperforming Assets as a % of Capital 1.35 3.39 3.96 2.44 1.85 ================================================================================================================ Annualized Capital includes allowance for loan losses.
CAPITAL CITY BANK GROUP, INC. AVERAGE BALANCE AND INTEREST RATES Unaudited ================================================================================================================================ First Quarter of 2004 Fourth Quarter 2003 Third Quarter 2003 ------------------------- ------------------------- ------------------------ Average Average Average Average Average Average (Dollars in thousands) Balance Interest Rate Balance Interest Rate Balance Interest Rate - ------------------------------------------------------------------------ ------------------------- ------------------------ ASSETS: Loans, Net of Unearned Interest $1,357,206 $21,310 6.32% 1,329,673 21,436 6.40 1,336,139 21,796 6.47 Investment Securities Taxable Investment Securities 121,702 635 2.09 133,029 774 2.31 108,234 841 3.09 Tax-Exempt Investment Securities 54,274 822 6.06 58,006 875 6.03 60,306 898 5.96 - -------------------------------------------------------------------------------------------------------------------------------- Total Investment Securities 175,976 1,457 3.31 191,035 1,649 3.45 168,540 1,739 4.12 Funds Sold 101,286 222 0.87 115,561 274 0.93 130,010 303 0.91 - -------------------------------------------------------------------------------------------------------------------------------- Total Earning Assets 1,634,468 $22,989 5.66% 1,636,269 23,359 5.66 1,634,689 23,838 5.79 ============== ============ ============ Cash and Due From Banks 90,327 81,272 80,246 Allowance For Loan Losses (12,725) (12,494) (12,534) Other Assets 118,426 114,505 113,604 - -------------------------------------------------------- --------- --------- Total Assets $1,830,496 1,819,552 1,816,005 ======================================================== ========= ========= LIABILITIES: Interest Bearing Deposits NOW Accounts $ 271,878 124 0.18% 273,497 130 0.19 263,729 151 0.23 Money Market Accounts 215,078 239 0.45 215,540 242 0.44 220,924 257 0.46 Savings Accounts 115,985 28 0.10 111,957 28 0.10 111,644 28 0.10 Time Deposits 420,501 2,003 1.92 429,209 2,158 1.99 434,206 2,293 2.10 - -------------------------------------------------------------------------------------------------------------------------------- 1,023,442 2,394 0.94 1,030,203 2,558 0.99 1,030,503 2,729 1.05 Short-Term Borrowings 104,406 288 1.11 103,606 319 1.22 92,316 282 1.21 Long-Term Debt 47,023 497 4.25 42,881 462 4.27 53,041 495 3.70 - -------------------------------------------------------------------------------------------------------------------------------- Total Interest Bearing Liabilities 1,174,871 $ 3,179 1.09% 1,176,690 3,339 1.13 1,175,860 3,506 1.18 ============== ============ ============ Noninterest Bearing Deposits 433,718 420,892 421,376 Other Liabilities 15,512 20,031 19,709 - -------------------------------------------------------- --------- --------- Total Liabilities 1,624,101 1,617,613 1,616,945 SHAREOWNERS' EQUITY: $ 206,395 201,939 199,060 - -------------------------------------------------------- --------- --------- Total Liabilities and Shareowners' Equity $1,830,496 1,819,552 1,816,005 ======================================================== ========= ========= Interest Rate Spread $19,810 4.57% 20,020 4.53 20,332 4.61 ======================================================================== ============ ============ Interest Income and Rate Earned $22,989 5.66 23,359 5.66 23,838 5.79 Interest Expense and Rate Paid 3,179 0.78 3,339 0.81 3,506 0.85 - ------------------------------------------------------------------------ ------------ ------------ Net Interest Margin $19,810 4.88% 20,020 4.85 20,332 4.94 ======================================================================== ============ ============ Interest and average rates are calculated on a tax-equivalent basis using the 35% Federal tax rate. Rate calculated based on average earning assets.
CAPITAL CITY BANK GROUP, INC. AVERAGE BALANCE AND INTEREST RATES Unaudited =================================================================================================== Second Quarter of 2003 First Quarter 2003 ------------------------- ------------------------ Average Average Average Average (Dollars in thousands) Balance Interest Rate Balance Interest Rate - -------------------------------------------- ------------------------- ------------------------ ASSETS: Loans, Net of Unearned Interest $1,316,705 $22,166 6.75% 1,289,161 22,210 6.99 Investment Securities Taxable Investment Securities 118,494 929 3.13 138,646 1,180 3.41 Tax-Exempt Investment Securities 62,552 923 5.90 64,772 955 5.89 - --------------------------------------------------------------------------------------------------- Total Investment Securities 181,046 1,852 4.09 203,418 2,135 4.21 Funds Sold 114,382 332 1.15 122,708 352 1.15 - --------------------------------------------------------------------------------------------------- Total Earning Assets 1,612,133 $24,350 6.06% 1,615,287 24,697 6.20 ============== ============ Cash and Due From Banks 74,537 82,453 Allowance For Loan Losses (12,531) (12,619) Other Assets 112,852 111,536 - -------------------------------------------------------- --------- Total Assets $1,786,991 1,796,657 ======================================================== ========= LIABILITIES: Interest Bearing Deposits NOW Accounts $ 256,675 193 0.30% 262,618 202 0.31 Money Market Accounts 211,314 392 0.74 214,539 420 0.79 Savings Accounts 109,424 68 0.25 106,241 65 0.25 Time Deposits 434,515 2,400 2.22 434,825 2,539 2.37 - --------------------------------------------------------------------------------------------------- 1,011,928 3,053 1.21 1,018,223 3,226 1.29 Short-Term Borrowings 102,510 340 1.33 106,798 329 1.25 Long-Term Debt 54,434 501 3.69 72,372 545 3.05 - --------------------------------------------------------------------------------------------------- Total Interest Bearing Liabilities 1,168,872 $ 3,894 1.34% 1,197,393 4,100 1.39 ============== ============ Noninterest Bearing Deposits 403,870 389,540 Other Liabilities 19,468 19,308 - -------------------------------------------------------- --------- Total Liabilities 1,592,210 1,606,241 SHAREOWNERS' EQUITY: $ 194,781 190,416 - -------------------------------------------------------- --------- Total Liabilities and Shareowners' Equity $1,786,991 1,796,657 ======================================================== ========= Interest Rate Spread $20,456 4.72% 20,597 4.81 ======================================================================== ============ Interest Income and Rate Earned $24,350 6.06 24,697 6.20 Interest Expense and Rate Paid 3,894 0.97 4,100 1.03 - ------------------------------------------------------------------------ ------------ Net Interest Margin $20,456 5.09% 20,597 5.17 ======================================================================== ============ Interest and average rates are calculated on a tax-equivalent basis using the 35% Federal tax rate. Rate calculated based on average earning assets.