Exhibit 99.1 Capital City Bank Group, Inc.'s Press Release, dated
October 28 2004
[CCBG LOGO] For Information Contact:
Corporate Headquarters J. Kimbrough Davis 850-671-0300
217 North Monroe Street Executive Vice President
Tallahassee, FL 32301 Chief Financial Officer
News Release
For Immediate Release October 28, 2004
CAPITAL CITY BANK GROUP, INC. REPORTS
THIRD QUARTER EARNINGS OF
$0.82 PER DILUTED SHARE
HIGHLIGHTS
* Quarterly earnings totaled $10.8 million, or $0.82 per diluted share, an
increase of 71.8% and 74.5%, respectively, from the third quarter of 2003.
Excluding a one-time gain on the sale of the credit card portfolio,
earnings for the quarter improved $.03 per diluted share, or 6.4%, over
the third quarter of 2003, and $.02 per diluted share, or 4.2%, over the
second quarter of 2004.
* Net interest income improved 6.4% over 2003 due to a 6.1% increase in
earning assets reflective of strong loan growth in existing CCBG markets
and the acquisition of Quincy State Bank in the first quarter.
* Credit quality remains strong as indicated by a nonperforming asset ratio
of .36% and a net charge-off ratio of .22%.
* Well capitalized with a Tier 1 capital ratio of 11.81%.
EARNINGS HIGHLIGHTS
Three Months Ended Nine Months Ended
-------------------------------- --------------------
Sept. 30, June 30, Sept. 30, Sept. 30, Sept. 30,
(Dollars in thousands, except per share data) 2004 2004 2003 2004 2003
- ----------------------------------------------------------------------------------------------------------
EARNINGS
Net Income $10,819 6,443 6,296 22,109 19,097
Diluted Earnings Per Common Share $ 0.82 0.48 0.47 1.67 1.44
- ----------------------------------------------------------------------------------------------------------
PERFORMANCE
Return on Average Equity 19.81% 12.33 12.55 13.98 13.11
Return on Average Assets 2.22 1.34 1.38 1.55 1.42
Net Interest Margin 4.94 4.99 4.94 4.93 5.06
Noninterest Income as % of Operating Revenue 45.47 34.39 35.41 38.47 34.19
Efficiency Ratio 52.60 63.87 61.93 60.73 61.15
- ----------------------------------------------------------------------------------------------------------
CAPITAL ADEQUACY
Tier 1 Capital Ratio 11.81% 10.98 12.98 11.81 12.98
Total Capital Ratio 12.62 11.86 13.92 12.62 13.92
Leverage Ratio 9.17 8.34 9.19 9.17 9.19
Equity to Assets 11.22 10.35 10.73 11.22 10.73
1
Three Months Ended Nine Months Ended
-------------------------------- --------------------
Sept. 30, June 30, Sept. 30, Sept. 30, Sept. 30,
(Dollars in thousands, except per share data) 2004 2004 2003 2004 2003
- ----------------------------------------------------------------------------------------------------------
ASSET QUALITY
Allowance as % of Non-Performing Loans 261.91% 452.82 183.35 261.91 183.35
Allowance as a % of Loans 0.80 0.90 0.94 0.80 0.94
Net Charge-Offs as % of Average Loans 0.22 0.18 0.28 0.22 0.27
Nonperforming Assets as % of Loans and ORE 0.36 0.27 0.63 0.36 0.63
- ----------------------------------------------------------------------------------------------------------STOCK PERFORMANCE
High $ 41.20 43.15 40.93 45.55 40.93
Low 33.33 35.50 35.00 33.33 26.81
Close $ 38.71 39.59 38.16 38.71 38.16
Average Daily Trading Volume 10,452 12,294 9,810 10,359 11,371
- ----------------------------------------------------------------------------------------------------------
Capital City Bank Group, Inc. (NASDAQ: CCBG) reported earnings for the third
quarter totaling $10.8 million, or $0.82 per diluted share. This compares to
$6.3 million, or $0.47 per diluted share in the third quarter of 2003, an
increase of $.35 per share, or 74.5%. The company sold its $22.7 million
credit card portfolio during the third quarter resulting in a one-time after-
tax gain of $4.2 million, or $.32 per diluted share. Core earnings (reported
earnings excluding the gain) were $6.6 million, or $.50 per diluted share for
the quarter, which represents a 6.4% increase over the comparable quarter in
2003, and a 4.2% increase over the second quarter of 2004. The Return on
Average Assets was 2.22% and the Return on Average Equity was 19.81%,
compared to 1.38% and 12.55%, respectively, for the comparable period in
2003.
Growth in core earnings of $310,000, or 3.1%, was primarily attributable to a
$1.3 million, or 6.4% increase in net interest income and a $621,000, or
67.4% decrease in the loan loss provision offset by a $1.4 million, or 7.2%
increase in operating expenses.
William G. Smith, Jr., President and CEO, stated, "We had a solid third
quarter, as we prepared for the acquisition of Farmers and Merchants Bank of
Dublin, Georgia, which closed on October 15th. The integration of Quincy
State Bank and Farmers and Merchants Bank during 2004 will add to our
earnings, expand our footprint, and further enhance our franchise. The
operating environment has been good, and we have enjoyed strong loan growth
and low funding costs. Our momentum should continue as we enter the fourth
quarter and 2005."
Net interest income in the third quarter was up $1.3 million, or 6.4%
compared to the third quarter of 2003, due primarily to higher interest
income driven by growth in earning assets of $100 million, or 6.1%. The net
interest margin was unchanged at 4.94% as both the earning asset yield and
cost of funds declined by 7 basis points. The reduction in yield is
attributable to the continued low level of interest rates, which affects both
new loan production and assets subject to re-pricing. The bank is asset-
sensitive which should result in improvement in the net interest margin as
rates rise. However, management expects the improvement to be gradual, which
could be further impacted by increasing competition for deposits.
The provision for loan losses of $300,000 represents a $621,000 reduction
over the third quarter of 2003, primarily reflecting lower projected charge-
offs due to the sale of the bank's credit card portfolio in August. Net
charge-offs totaled $829,000, or .22% of average loans for the quarter
compared to $931,000, or .28% for the third quarter of 2003. At quarter-end
the allowance for loan losses was .80% of outstanding loans and provided
coverage of 262% of nonperforming loans.
Noninterest income increased $6.8 million, or 61.8%, over the third quarter
of 2003, due to a $6.9 million one-time gain on the sale of the bank's credit
card portfolio. A reduction in mortgage banking revenues was offset by
higher revenues in deposit service fees, asset management fees, and data
processing fees. The increase in deposit fees was driven by higher NSF/OD
fees, partially attributable to a recent change in fee structure.
2
Improvement in asset management fees reflects the acquisition of trust
accounts from Synovus Trust Company in connection with the Quincy State Bank
acquisition during the first quarter, and growth in new business. Mortgage
banking revenues declined from the comparable period in 2003 reflecting a
general slow-down in residential lending markets and the impact of the
September hurricanes that slowed insurance underwriting and loan closings.
Noninterest expense grew by $1.5 million, or 7.2%, in the third quarter of
2004. Higher expense for compensation, occupancy, advertising, and
intangibles were the primary reasons for the increase. The increase in
compensation is primarily due to higher expense for associate salaries that
is reflective of normal merit raises and the late first quarter integration
of Quincy State Bank associates. The increase in occupancy was driven
primarily by higher expense for utilities, property taxes, depreciation, and
premises rental. Advertising expense will fluctuate consistent with
advertising strategies planned throughout the year. The increase in
intangibles amortization reflects the addition of intangibles associated with
the Quincy State Bank acquisition in the first quarter.
Average earning assets for the quarter increased $100.0 million, or 6.1%,
over the comparable period in 2003. The increase in earning assets was
driven by a $188.3 million, or 14.1% increase in average loans generated from
growth in existing markets and $85 million in loans acquired in the Quincy
State Bank purchase. All loan categories reflect strong gains and the loan
pipeline going into the fourth quarter is comparable to the prior quarter.
Offsetting the increase in average loans was a decrease in short-term
investments of $90.4 million, or 69.5%.
Nonperforming assets of $5.6 million decreased from the third quarter of 2003
by $2.8 million. Non-performing assets represented .36% of total loans and
other real estate at quarter-end compared to .63% and .54%, respectively, for
the third and fourth quarters of 2003.
Average total deposits increased $93.3 million, or 6.4%, over the third
quarter of 2003 driven by a $70.8 million increase in nonmaturity deposits,
which produced a favorable shift in deposit mix and a positive impact on the
Company's cost of funds. Deposits acquired in the purchase of Quincy State
Bank totaled $101 million. Excluding the addition of QSB, certificates of
deposit have declined by $43.0 million reflecting management's decision not
to offer premium pricing to attract or retain these deposits.
The Company ended the third quarter with approximately $10.5 million in
average net overnight funds as compared to $116.4 million in the third
quarter of 2003. The decrease reflects the funding of loan growth, repayment
of $40 million in Federal Home Loan Bank advances, and the use of cash to
fund the acquisition of Quincy State Bank.
Capital City Bank Group, Inc. is a $2.4 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 60 banking offices, five residential lending offices,
76 ATMs and 11 Bank 'N Shop locations in Florida, Georgia, and Alabama. For
more information about Capital City Bank Group visit us on the Web at
http://www.ccbg.com.
"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.
3
CAPITAL CITY BANK GROUP, INC.
CONSOLIDATED STATEMENT OF INCOME
Unaudited
- ----------------------------------------------------------------------------------------------------------------------------
2004 2003 Nine Months Ended
------------------------------ ------------------- June 30,
Third Second First Fourth Third ------------------
(Dollars in thousands, except per share data) Quarter Quarter Quarter Quarter Quarter 2004 2003
- ----------------------------------------------------------------------------------------------------------------------------
INTEREST INCOME
Interest and Fees on Loans $ 23,316 22,922 21,272 21,398 21,747 67,510 66,036
Interest on Investment Securities 1,197 1,227 1,176 1,350 1,434 3,600 4,784
Interest on Funds Sold 147 116 222 274 303 485 987
- ----------------------------------------------------------------------------------------------------------------------------
Total Interest Income 24,660 24,265 22,670 23,022 23,484 71,595 71,807
- ----------------------------------------------------------------------------------------------------------------------------
INTEREST EXPENSE
Interest on Deposits 2,434 2,385 2,394 2,558 2,729 7,213 9,008
Interest on Short-term Borrowings 332 249 287 319 282 868 951
Interest on Long-term Debt 642 587 497 462 495 1,726 1,541
- ----------------------------------------------------------------------------------------------------------------------------
Total Interest Expense 3,408 3,221 3,178 3,339 3,506 9,807 11,500
- ----------------------------------------------------------------------------------------------------------------------------
Net Interest Income 21,252 21,044 19,492 19,683 19,978 61,788 60,307
Provision for Loan Losses 300 580 961 850 921 1,841 2,586
- ----------------------------------------------------------------------------------------------------------------------------
Net Interest Income after Provision for Loan Losses 20,952 20,464 18,531 18,833 19,057 59,947 57,721
============================================================================================================================
NONINTEREST INCOME
Service Charge Revenue 4,487 4,427 3,944 4,155 4,123 12,858 12,164
Data Processing Revenue 652 703 633 656 578 1,988 1,747
Asset Management Fees 1,035 950 741 735 660 2,726 1,915
Mortgage Banking Revenue 806 986 694 1,140 2,066 2,486 4,950
Gain on Sale of Credit Cards 6,857 - - - - 6,857 -
Other Fees 3,884 3,965 3,869 3,928 3,525 11,718 10,549
- ----------------------------------------------------------------------------------------------------------------------------
Total Noninterest Income 17,721 11,031 9,881 10,614 10,952 38,633 31,325
============================================================================================================================
NONINTEREST EXPENSE
Compensation 10,966 10,809 10,740 10,016 10,551 32,515 30,444
Premises 1,828 1,749 1,617 1,504 1,581 5,194 4,468
FF&E 2,174 1,977 2,063 2,123 2,048 6,214 5,717
Intangible Amortization 921 926 826 810 810 2,673 2,431
Other Expense 5,744 6,140 5,829 6,140 5,186 17,713 16,067
- ----------------------------------------------------------------------------------------------------------------------------
Total Noninterest Expense 21,633 21,601 21,075 20,593 20,184 64,309 59,127
============================================================================================================================
OPERATING PROFIT 17,040 9,894 7,337 8,854 9,825 34,271 29,919
Provision for Income Taxes 6,221 3,451 2,490 2,758 3,529 12,162 10,822
- ----------------------------------------------------------------------------------------------------------------------------
NET INCOME $ 10,819 6,443 4,847 6,096 6,296 22,109 19,097
============================================================================================================================
PER SHARE DATA
Basic Earnings $ 0.82 0.48 0.37 0.47 0.47 1.67 1.44
Diluted Earnings 0.82 0.48 0.37 0.47 0.47 1.67 1.44
Cash Dividends $ 0.180 0.180 0.180 0.180 0.170 0.540 0.476
AVERAGE SHARES
Basic 13,283 13,274 13,262 13,223 13,221 13,272 13,221
Diluted 13,287 13,277 13,286 13,265 13,260 13,275 13,255
============================================================================================================================
4
CAPITAL CITY BANK GROUP, INC.
CONSOLIDATED STATEMENT OF FINANCIAL CONDITION
Unaudited
- -----------------------------------------------------------------------------------------------------------------
2004 2003
----------------------------------- -----------------------
Third Second First Fourth Third
(Dollars in thousands, except per share data) Quarter Quarter Quarter Quarter Quarter
- -----------------------------------------------------------------------------------------------------------------
ASSETS
Cash and Due From Banks $ 90,458 97,154 93,427 93,140 105,407
Funds Sold 47,352 107,399 90,469 125,452 161,579
- -----------------------------------------------------------------------------------------------------------------
Total Cash and Cash Equivalents 137,810 204,553 183,896 218,592 266,986
Investment Securities, Available-for-Sale 156,675 183,732 188,763 181,734 162,734
Loans, Net of Unearned 1,540,650 1,521,497 1,465,804 1,341,632 1,332,888
Allowance for Loan Losses (12,328) (13,657) (13,720) (12,429) (12,424)
- -----------------------------------------------------------------------------------------------------------------
Loans, Net 1,528,322 1,507,840 1,452,084 1,329,203 1,310,464
Premises and Equipment 56,281 56,263 56,394 54,011 55,347
Intangible Assets 39,720 40,608 41,512 25,792 26,603
Other Assets 32,985 33,834 34,604 37,170 32,289
- -----------------------------------------------------------------------------------------------------------------
Total Other Assets 128,986 130,705 132,510 116,973 114,239
- -----------------------------------------------------------------------------------------------------------------
Total Assets $1,951,793 2,026,830 1,957,253 1,846,502 1,854,423
=================================================================================================================
LIABILITIES
Deposits:
Noninterest Bearing Deposits $ 518,352 520,118 482,703 455,550 456,302
Interest Bearing Deposits 1,052,195 1,092,618 1,088,963 1,018,655 1,029,139
- -----------------------------------------------------------------------------------------------------------------
Total Deposits 1,570,547 1,612,736 1,571,666 1,474,205 1,485,441
Short-Term Borrowings 76,216 127,012 112,343 108,184 112,255
Long-Term Debt 62,930 58,427 49,950 46,475 38,016
Other Liabilities 23,031 18,934 16,366 14,829 19,820
- -----------------------------------------------------------------------------------------------------------------
Total Liabilities 1,732,724 1,817,109 1,750,325 1,643,693 1,655,532
- -----------------------------------------------------------------------------------------------------------------
SHAREOWNERS' EQUITY
Common Stock 133 133 132 132 132
Additional Paid-in-Capital 18,411 17,922 17,788 16,157 15,578
Retained Earnings 200,073 191,645 187,592 185,134 181,395
Accumulated Other Comprehensive Income 452 21 1,416 1,386 1,786
- -----------------------------------------------------------------------------------------------------------------
Total Shareowners' Equity 219,069 209,721 206,928 202,809 198,891
- -----------------------------------------------------------------------------------------------------------------
Total Liabilities and Owners' Equity $1,951,793 2,026,830 1,957,253 1,846,502 1,854,423
=================================================================================================================
OTHER BALANCE SHEET DATA
Earning Assets $1,744,677 1,812,628 1,745,036 1,648,818 1,647,201
Intangible Assets
Goodwill 19,657 19,656 19,633 6,680 6,680
Deposit Base 18,897 19,786 20,683 19,112 19,923
Other 1,166 1,166 1,196 - -
Interest Bearing Liabilities 1,191,341 1,278,057 1,251,256 1,173,314 1,179,410
- -----------------------------------------------------------------------------------------------------------------
Book Value Per Diluted Share $ 16.48 15.80 15.54 15.27 15.00
Tangible Book Value Per Diluted Share 13.50 12.74 12.43 13.33 13.00
- -----------------------------------------------------------------------------------------------------------------
Actual Basic Shares Outstanding 13,285 13,275 13,273 13,236 13,222
Actual Diluted Shares Outstanding 13,289 13,277 13,312 13,280 13,256
=================================================================================================================
5
CAPITAL CITY BANK GROUP, INC.
ALLOWANCE FOR LOAN LOSSES
AND NONPERFORMING ASSETS
Unaudited
- -----------------------------------------------------------------------------------------------------------------
2004 2003
----------------------------------- -----------------------
Third Second First Fourth Third
(Dollars in thousands, except per share data) Quarter Quarter Quarter Quarter Quarter
- -----------------------------------------------------------------------------------------------------------------
ALLOWANCE FOR LOAN LOSSES
Balance at Beginning of Period $13,657 13,720 12,429 12,424 12,434
Acquired Reserves 0 6 1,307 0 0
Reserve Reversal - Credit Card -800 0 0 0 0
Provision for Loan Losses 300 580 961 850 921
Net Charge-Offs 829 649 977 845 931
- -----------------------------------------------------------------------------------------------------------------
Balance at End of Period $12,328 $13,657 13,720 12,429 12,424
=================================================================================================================
As a % of Loans 0.80% 0.90 0.94 0.93 0.94
As a % of Nonperforming Loans 261.91 452.82 717.20 529.80 183.35
As a % of Nonperforming Assets 220.10 334.73 459.63 170.24 148.51
=================================================================================================================
CHARGE-OFFS
Commercial, Financial and Agricultural $ 187 286 167 46 61
Real Estate - Construction 0 0 0 0 0
Real Estate - Mortgage 0 0 39 0 91
Real Estate - Residential 19 11 83 58 119
Consumer 998 885 1,047 1,054 937
- -----------------------------------------------------------------------------------------------------------------
Total Charge-Offs $ 1,204 1,182 1,336 1,158 1,208
=================================================================================================================
RECOVERIES
Commercial, Financial and Agricultural $ 10 24 12 13 73
Real Estate - Construction 0 0 0 0 0
Real Estate - Mortgage 14 0 0 0 0
Real Estate - Residential 1 176 0 17 0
Consumer 350 333 347 283 204
- -----------------------------------------------------------------------------------------------------------------
Total Recoveries $ 375 533 359 313 277
=================================================================================================================
NET CHARGE-OFFS $ 829 649 977 845 931
=================================================================================================================
Net Charge-Offs as a % of Average Loans 0.22% 0.18 0.29 0.25 0.28
=================================================================================================================
RISK ELEMENT ASSETS
Nonaccruing Loans $ 4,707 3,016 1,913 2,346 6,776
Restructured 0 0 0 0 0
- -----------------------------------------------------------------------------------------------------------------
Total Nonperforming Loans 4,707 3,016 1,913 2,346 6,776
Other Real Estate 894 1,064 1,072 4,955 1,590
- -----------------------------------------------------------------------------------------------------------------
Total Nonperforming Assets $ 5,601 4,080 2,985 7,301 8,366
=================================================================================================================
Past Due Loans 90 Days or More $ 252 330 1,351 328 410
=================================================================================================================
Nonperforming Loans as a % of Loans 0.31% 0.20 0.13 0.17 0.51
Nonperforming Assets as a % of
Loans and Other Real Estate 0.36 0.27 0.20 0.54 0.63
Nonperforming Assets as a % of Capital 2.42 1.83 1.35 3.39 3.96
=================================================================================================================
Annualized
Capital includes allowance for loan losses.
6
CAPITAL CITY BANK GROUP, INC.
AVERAGE BALANCE AND INTEREST RATES
Unaudited
- -------------------------------------------------------------------------------------------------------------------------------
Third Quarter of 2004 Second Quarter 2004 First Quarter 2004
------------------------- ------------------------- ------------------------
Average Average Average Average Average Average
(Dollars in thousands) Balance Interest Rate Balance Interest Rate Balance Interest Rate
- -------------------------------------------- ------------------------- ------------------------- ------------------------
ASSETS:
Loans, Net of Unearned Interest $1,524,401 $23,345 6.09% 1,491,142 22,961 6.19 1,357,206 21,310 6.32
Investment Securities
Taxable Investment Securities 118,903 729 2.45 134,634 745 2.21 121,702 635 2.09
Tax-Exempt Investment Securities 51,768 716 5.53 50,191 732 5.83 54,274 822 6.06
- --------------------------------------------------------------------------------------------------------------------------------
Total Investment Securities 170,671 1,445 3.38 184,825 1,477 3.20 175,976 1,457 3.31
Funds Sold 39,636 146 1.45 45,688 116 1.01 101,286 222 0.87
- --------------------------------------------------------------------------------------------------------------------------------
Total Earning Assets 1,734,708 $24,936 5.72% 1,721,655 24,554 5.74 1,634,468 22,989 5.66
============== ============ ============
Cash and Due From Banks 90,010 89,921 90,327
Allowance For Loan Losses (13,029) (13,804) (12,725)
Other Assets 129,683 131,713 118,426
- -------------------------------------------------------- --------- ---------
Total Assets $1,941,372 $1,929,485 1,830,496
======================================================== ========= =========
LIABILITIES:
Interest Bearing Deposits
NOW Accounts $ 280,630 $ 153 0.22% 283,297 121 0.17 271,878 124 0.18
Money Market Accounts 212,426 245 0.46 215,746 239 0.44 215,078 239 0.45
Savings Accounts 130,330 32 0.10 129,684 32 0.10 115,985 28 0.10
Time Deposits 429,702 2,004 1.86 433,514 1,993 1.85 420,501 2,003 1.92
- --------------------------------------------------------------------------------------------------------------------------------
1,053,088 2,434 0.92 1,062,241 2,385 0.90 1,023,442 2,394 0.94
Short-Term Borrowings 96,146 332 1.37 109,723 249 0.91 104,406 288 1.11
Long-Term Debt 59,837 642 4.27 53,752 587 4.39 47,023 497 4.25
- --------------------------------------------------------------------------------------------------------------------------------
Total Interest Bearing Liabilities 1,209,071 $ 3,408 1.12% 1,225,716 3,221 1.06 1,174,871 3,179 1.09
============== ============ ============
Noninterest Bearing Deposits 492,136 476,389 433,718
Other Liabilities 22,892 17,169 15,512
- -------------------------------------------------------- --------- ---------
Total Liabilities 1,724,099 1,719,274 1,624,101
SHAREOWNERS' EQUITY: $ 217,273 210,211 206,395
- -------------------------------------------------------- --------- ---------
Total Liabilities and Shareowners' Equity $1,941,372 1,929,485 1,830,496
======================================================== ========= =========
Interest Rate Spread $21,528 4.60% 21,333 4.68 19,810 4.57
======================================================================== ============ ============
Interest Income and Rate Earned $24,936 5.72 24,554 5.74 22,989 5.66
Interest Expense and Rate Paid 3,408 0.78 3,221 0.75 3,179 0.78
- ------------------------------------------------------------------------ ------------ ------------
Net Interest Margin $21,528 4.94% 21,333 4.99 19,810 4.88
======================================================================== ============ ============
Interest and average rates are calculated on a tax-equivalent basis using the 35% Federal tax rate.
Rate calculated based on average earning assets.
Rate calculated based on average interest bearing liabilities.
7
CAPITAL CITY BANK GROUP, INC.
AVERAGE BALANCE AND INTEREST RATES
Unaudited
- ----------------------------------------------------------------------------------------------------
Fourth Quarter of 2003 Third Quarter 2003
------------------------- -------------------------
Average Average Average Average
(Dollars in thousands) Balance Interest Rate Balance Interest Rate
- -------------------------------------------- ------------------------- -------------------------
ASSETS:
Loans, Net of Unearned Interest $1,329,673 $21,436 6.40% 1,336,139 21,796 6.47
Investment Securities
Taxable Investment Securities 133,029 774 2.31 108,234 841 3.09
Tax-Exempt Investment Securities 58,006 875 6.03 60,306 898 5.96
- ----------------------------------------------------------------------------------------------------
Total Investment Securities 191,035 1,649 3.45 168,540 1,739 4.12
Funds Sold 115,561 274 0.93 130,010 303 0.91
- ----------------------------------------------------------------------------------------------------
Total Earning Assets 1,636,269 $23,359 5.66% 1,634,689 23,838 5.79
============== ============
Cash and Due From Banks 81,272 80,246
Allowance For Loan Losses (12,494) (12,534)
Other Assets 114,505 113,604
- -------------------------------------------------------- ---------
Total Assets $1,819,552 1,816,005
======================================================== =========
LIABILITIES:
Interest Bearing Deposits
NOW Accounts $ 273,497 130 0.19% 263,729 151 0.23
Money Market Accounts 215,540 242 0.44 220,924 257 0.46
Savings Accounts 111,957 28 0.10 111,644 28 0.10
Time Deposits 429,209 2,158 1.99 434,206 2,293 2.10
- ----------------------------------------------------------------------------------------------------
1,030,203 2,558 0.99 1,030,503 2,729 1.05
Short-Term Borrowings 103,606 319 1.22 92,316 282 1.21
Long-Term Debt 42,881 462 4.27 53,041 495 3.70
- -----------------------------------------------------------------------------------------------------
Total Interest Bearing Liabilities 1,176,690 $ 3,339 1.13% 1,175,860 3,506 1.18
============== ============
Noninterest Bearing Deposits 420,892 421,376
Other Liabilities 20,031 19,709
- -------------------------------------------------------- ---------
Total Liabilities 1,617,613 1,616,945
SHAREOWNERS' EQUITY: $ 201,939 199,060
- -------------------------------------------------------- ---------
Total Liabilities and Shareowners' Equity $1,819,552 1,816,005
======================================================== =========
Interest Rate Spread $20,020 4.53% 20,332 4.61
======================================================================== ============
Interest Income and Rate Earned $23,359 5.66 23,838 5.79
Interest Expense and Rate Paid 3,339 0.81 3,506 0.85
- ------------------------------------------------------------------------ ------------
Net Interest Margin $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.
Rate calculated based on average interest bearing liabilities.
8
CAPITAL CITY BANK GROUP, INC.
AVERAGE BALANCE AND INTEREST RATES
Unaudited
- ----------------------------------------------------------------------------------------------------
Nine Months Ended Nine Months Ended
Sept. 30, 2004 Sept. 30, 2003
------------------------- -------------------------
Average Average Average Average
(Dollars in thousands) Balance Interest Rate Balance Interest Rate
- -------------------------------------------- ------------------------- -------------------------
ASSETS:
Loans, Net of Unearned Interest $1,457,826 $67,616 6.20% 1,314,173 66,172 6.73
Investment Securities
Taxable Investment Securities 125,057 2,109 2.25 121,680 2,951 3.23
Tax-Exempt Investment Securities 52,077 2,270 5.81 62,527 2,776 5.92
- ----------------------------------------------------------------------------------------------------
Total Investment Securities 177,134 4,379 3.30 184,207 5,727 4.15
Funds Sold 62,121 484 1.03 122,394 987 1.06
- ----------------------------------------------------------------------------------------------------
Total Earning Assets 1,697,081 $72,479 5.70% 1,620,774 72,886 6.01
============== =============
Cash and Due From Banks 90,086 79,071
Allowance For Loan Losses (13,185) (12,561)
Other Assets 126,619 112,671
- -------------------------------------------------------- ---------
Total Assets $1,900,601 1,799,955
======================================================== =========
LIABILITIES:
Interest Bearing Deposits
NOW Accounts $ 278,609 398 0.19% 261,011 546 0.28
Money Market Accounts 214,410 723 0.45 215,616 1,069 0.66
Savings Accounts 125,351 92 0.10 109,123 161 0.20
Time Deposits 427,913 6,000 1.87 434,513 7,232 2.23
- ----------------------------------------------------------------------------------------------------
1,046,283 7,213 0.92 1,020,263 9,008 1.18
Short-Term Borrowings 103,398 869 1.12 100,488 951 1.26
Long-Term Debt 53,560 1,726 4.30 59,878 1,541 3.44
- ----------------------------------------------------------------------------------------------------
Total Interest Bearing Liabilities 1,203,241 $ 9,808 1.09% 1,180,629 11,500 1.30
============== =============
Noninterest Bearing Deposits 467,504 405,045
Other Liabilities 18,541 19,497
- -------------------------------------------------------- ---------
Total Liabilities 1,689,286 1,605,171
SHAREOWNERS' EQUITY: $ 211,315 194,784
- -------------------------------------------------------- ---------
Total Liabilities and Shareowners' Equity $1,900,601 1,799,955
======================================================== =========
Interest Rate Spread $62,671 4.61% 61,386 4.71
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Interest Income and Rate Earned $72,479 5.70 72,886 6.01
Interest Expense and Rate Paid 9,808 0.77 11,500 0.95
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Net Interest Margin $62,671 4.93% 61,386 5.06
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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.
Rate calculated based on average interest bearing liabilities.