Exhibit 99.1 Press Release
[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 January 27, 2005
CAPITAL CITY BANK GROUP, INC. REPORTS
2004 EARNINGS
OF $2.18 PER DILUTED SHARE, UP 14.7%
HIGHLIGHTS
* 2004 earnings of $29.4 million, or $2.18 per diluted share, represent
increases of 16.7% and 14.7%, over 2003. Fourth quarter 2004 earnings of
$7.3 million, or $.51 per diluted share, represent increases of 19.1% and
10.9%, respectively over the fourth quarter of 2003. Earnings in 2004
include a one-time, after-tax gain of $4.2 million, or $.32 per diluted
share, recognized in the third quarter on the sale of Capital City Bank's
credit card portfolio.
* For the year and fourth quarter, the net interest margin declined 13 basis
points to 4.88% and 10 basis points to 4.75%, respectively, over the
comparable periods in 2003. The reduction in margin was driven by the low
interest rate environment and the fourth quarter integration of Farmers
and Merchants Bank. Strong loan growth and an improved deposit mix,
however, had a positive impact, which helped to mitigate the overall
decline.
* Credit costs during 2004 were lower due to continued strong credit quality
as evidenced by a nonperforming asset ratio of .29% and a net charge-off
ratio of .22%.
* Completed acquisition of Farmers and Merchants Bank on October 15, 2004.
* Well capitalized with a Tier 1 capital ratio of 11.4%.
EARNINGS HIGHLIGHTS
Three Months Ended Twelve Months Ended
-------------------------------- --------------------
Dec. 31, Sept. 30, Dec. 31, Dec. 31, Dec. 31,
(Dollars in thousands, except per share data) 2004 2004 2003 2004 2003
- ----------------------------------------------------------------------------------------------------------
EARNINGS
Net Income $ 7,262 10,819 6,096 29,371 25,193
Diluted Earnings Per Common Share 0.51 0.82 0.46 2.18 1.90
- ----------------------------------------------------------------------------------------------------------
PERFORMANCE
Return on Average Equity 11.61% 19.81 11.98 13.31 12.82
Return on Average Assets 1.24 2.22 1.33 1.46 1.40
Net Interest Margin 4.75 4.94 4.85 4.88 5.01
Noninterest Income as % of Operating Revenue 32.91 45.47 35.03 37.00 34.40
Efficiency Ratio 63.85 52.60 64.58 61.56 62.01
- ----------------------------------------------------------------------------------------------------------
CAPITAL ADEQUACY
Tier 1 Capital Ratio 11.44% 11.81 12.88 11.44 12.88
Total Capital Ratio 12.33 12.62 13.79 12.33 13.79
Leverage Ratio 8.79 9.17 9.51 8.79 9.51
Equity to Assets 10.86 11.22 10.98 10.86 10.98
1
Three Months Ended Twelve Months Ended
-------------------------------- --------------------
Dec. 31, Sept. 30, Dec. 31, Dec. 31, Dec. 31,
(Dollars in thousands, except per share data) 2004 2004 2003 2004 2003
- ----------------------------------------------------------------------------------------------------------
ASSET QUALITY
Allowance as % of Non-Performing Loans 345.18% 261.91 529.80 345.18 529.80
Allowance as a % of Loans 0.88 0.80 0.93 0.88 0.93
Net Charge-Offs as % of Average Loans 0.22 0.22 0.25 0.22 0.27
Nonperforming Assets as % of Loans and ORE 0.29 0.36 0.54 0.29 0.54
- ----------------------------------------------------------------------------------------------------------STOCK PERFORMANCE
High $ 45.98 41.20 46.83 45.98 46.83
Low 37.71 33.33 36.62 33.33 26.81
Close 41.80 38.71 45.99 41.80 45.99
Average Daily Trading Volume 11,940 10,452 10,586 10,761 11,175
- ----------------------------------------------------------------------------------------------------------
Capital City Bank Group, Inc. (NASDAQ: CCBG) reported earnings for the year
ended 2004 totaling $29.4 million, or $2.18 per diluted share. This compares
to $25.2 million, or $1.90 per diluted share in 2003, an increase of 16.7%
and 14.7%, respectively. Core earnings (reported earnings excluding the one-
time gain on sale of the credit card portfolio in the third quarter) for the
year ended 2004 of $25.2 million were comparable to 2003 earnings. Core
earnings per diluted share for the year ended 2004 was $1.87, a decrease of
1.6% from 2003. For the fourth quarter of 2004, earnings totaled $7.3
million, or $.51 per diluted share. This compares to $6.1 million, or $.46
per diluted share for the fourth quarter of 2003, increases of 19.1% and
10.9%, respectively. For the year 2004, the Return on Average Assets was
1.46% and the Return on Average Equity was 13.31%, compared to 1.40% and
12.82%, respectively, for 2003.
Core earnings performance for 2004 was positively impacted by favorable
variances in net interest income of $6.1 million, loan loss provision of $1.3
million, and noninterest income of $1.4 million, but these gains were offset
by higher operating expenses of $9.5 million reflecting higher compensation
and occupancy costs (primarily attributable to newly acquired offices), and
professional fees paid for Sarbanes-Oxley Section 404 compliance efforts.
William G. Smith, Jr., Chairman, President and CEO of Capital City Bank
Group, said, "Capital City Bank accomplished our objectives in 2004. As we
continue toward our goal of $50 million in earnings by 2010, we made
significant progress, thanks to the completion of two successful acquisitions
- - Quincy State Bank and Farmers and Merchants Bank of Dublin. We also
implemented key strategic objectives, from the sale of our credit card
portfolio to implementing several new profit initiatives, that we believe
will strengthen our position of being a super-community bank in the
relationship banking business."
Net interest income in 2004 grew $6.1 million, or 7.6% over 2003 due to
higher interest income driven by earning asset growth, and an improved
deposit mix, partially offset by declining asset yields primarily
attributable to earning asset repricing. The full year net interest margin
of 4.88% declined 13 basis points from the comparable period in 2003
reflective of an 18 basis point decline in earning asset yield offset by a 5
basis point decline in the cost of funds. The reduction in yield is
primarily attributable to the low level of interest rates during the year,
which affected both new loan production and assets subject to repricing.
Provision for loan losses for the year totaled $2.1 million compared to $3.4
million in 2003. The lower provision is reflective of a reduction in the
overall risk of the portfolio due to the sale of the Bank's credit card
portfolio, which previously accounted for approximately one-third of total
net charge-offs. Net charge-offs totaled $3.4 million, or .22% of average
loans for the year compared to $3.5 million, or .27% for 2003. At year-end,
the allowance for loan losses was .88% of outstanding loans and provided
coverage of 345% of nonperforming loans.
Noninterest income increased $8.6 million, or 20.5%, over 2003 due primarily
to the $6.9 million one-time gain on the sale of the Bank's credit card
portfolio recognized in the third quarter. Gains were also realized in
deposit service fees, data processing fees, asset management fees, and
merchant fees that were partially offset by a decline in mortgage banking
revenues. The increase in deposit fees was driven by higher
2
NSF/OD fees, partially attributable to a change in fee structure.
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, growth in new business, and increased
fee revenues from managed accounts due to improved asset returns. Data
processing fees improved due to growth in processing volume for state
contracts and user banks. Merchant fees also improved due to increased
processing volume. Mortgage banking revenues declined from 2003 due to lower
production that was affected by a general slow-down in residential lending
markets.
Noninterest expense grew by $9.5 million, or 11.9%, over 2003. Higher
expense for compensation, occupancy, professional fees, 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 integration of two acquisitions
during the year. The increase in occupancy was driven primarily by higher
expense for utilities, property taxes, depreciation, and premises rental
attributable to the increase in banking offices. The increase in
professional fees is reflective of the cost of Sarbanes-Oxley Section 404
compliance and testing work. Advertising expense was higher due to an
increased level of marketing initiatives aimed at supporting two new
acquisitions during the year and an increased level of product and market
support activities. The increase in intangibles amortization reflects the
addition of intangibles associated with the two acquisitions closed in 2004.
Average earning assets increased $429.8 million, or 26.3%, in the fourth
quarter of 2004 over the comparable period in 2003. The increase in earning
assets was primarily attributable to a $450.1 million, or 33.9% increase, in
average loans generated from growth in existing markets ($165.9 million) and
in loans acquired from Quincy State Bank ($72.5 million) and Farmers and
Merchants Bank of Dublin ($211.7 million).
Nonperforming assets totaled $5.3 million, or .29%, of total loans and other
real estate at year-end. This compares to .36% for the third quarter of
2004, and .54% for the year ended 2003. Asset quality continues to be strong
and a key driver in bank performance and growth.
Average total deposits increased $402.5 million, or 27.7%, from the fourth
quarter of 2003 reflecting the addition of deposits acquired from Quincy
State Bank ($84.1 million) and Farmers and Merchants Bank of Dublin ($260.2
million), and growth in existing markets ($58.2 million). The deposit mix
for the fourth quarter improved slightly as noninterest bearing deposits made
up 30.0% of total deposits compared to 29.0% in 2003.
The Company ended the fourth quarter with approximately $60.6 million in
average net overnight funds as compared to $115.6 million in the fourth
quarter of 2003. The decrease reflects the funding of loan growth, repayment
of Federal Home Loan Bank advances, and the use of cash to fund the
acquisition of Quincy State Bank.
About Capital City Bank Group, Inc.
Capital City Bank Group, Inc. is a $2.4 billion financial services company
headquartered in Tallahassee, Florida, providing traditional deposit and
credit services, asset management, trust, mortgage banking, bankcards, data
processing, and securities brokerage services. Founded in 1895, Capital City
Bank has 60 banking offices, five mortgage lending offices, 75 ATMs, and 11
Bank 'N Shop locations in Florida, Georgia and Alabama. For more information
about Capital City Bank Group, Inc. 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 Twelve Months Ended
----------------------------------------- -------- Dec. 31,
Fourth Third Second First Fourth -------------------
(Dollars in thousands, except per share data) Quarter Quarter Quarter Quarter Quarter 2004 2003
- -----------------------------------------------------------------------------------------------------------------------------
INTEREST INCOME
Interest and Fees on Loans $ 28,097 23,316 22,922 21,272 21,398 95,607 87,434
Interest on Investment Securities 1,485 1,197 1,227 1,176 1,350 5,085 6,135
Interest on Funds Sold 348 147 116 222 274 833 1,261
- ----------------------------------------------------------------------------------------------------------------------------
Total Interest Income 29,930 24,660 24,265 22,670 23,022 101,525 94,830
- ----------------------------------------------------------------------------------------------------------------------------
INTEREST EXPENSE
Interest on Deposits 4,102 2,434 2,385 2,394 2,558 11,315 11,567
Interest on Short-term Borrowings 402 332 249 287 319 1,270 1,270
Interest on Subordinate Debentures 294 - - - 294 -
Interest on Long-term Debt 836 642 587 497 462 2,562 2,002
- ----------------------------------------------------------------------------------------------------------------------------
Total Interest Expense 5,634 3,408 3,221 3,178 3,339 15,441 14,839
- ----------------------------------------------------------------------------------------------------------------------------
Net Interest Income 24,296 21,252 21,044 19,492 19,683 86,084 79,991
Provision for Loan Losses 300 300 580 961 850 2,141 3,436
- ----------------------------------------------------------------------------------------------------------------------------
Net Interest Income after Provision for Loan Losses 23,996 20,952 20,464 18,531 18,833 83,943 76,555
============================================================================================================================
NONINTEREST INCOME
Service Charge Revenue 4,716 4,487 4,427 3,944 4,155 17,574 16,319
Data Processing Revenue 640 652 703 633 656 2,628 2,403
Asset Management Fees 1,281 1,035 950 741 735 4,007 2,650
Mortgage Banking Revenue 722 806 986 694 1,140 3,208 6,090
Gain on Sale of Credit Cards 324 6,857 - - - 7,181 -
Other 4,237 3,884 3,965 3,869 3,928 15,955 14,477
- ----------------------------------------------------------------------------------------------------------------------------
Total Noninterest Income 11,920 17,721 11,031 9,881 10,614 50,553 41,939
============================================================================================================================
NONINTEREST EXPENSE
Compensation 11,830 10,966 10,809 10,740 10,016 44,345 40,462
Premises 1,880 1,828 1,749 1,617 1,504 7,074 5,972
FF&E 2,179 2,174 1,977 2,063 2,123 8,393 7,840
Intangible Amortization 1.151 921 926 826 810 3,824 3,241
Other 7,877 5,744 6,140 5,829 6,140 25,590 22,206
- ----------------------------------------------------------------------------------------------------------------------------
Total Noninterest Expense 24,917 21,633 21,601 21,075 20,593 89,226 79,721
============================================================================================================================
OPERATING PROFIT 10,999 17,040 9,894 7,337 8,854 45,270 38,773
Provision for Income Taxes 3,737 6,221 3,451 2,490 2,758 15,899 13,580
- ----------------------------------------------------------------------------------------------------------------------------
NET INCOME $ 7,262 10,819 6,443 4,847 6,096 29,371 25,193
============================================================================================================================
PER SHARE DATA
Basic Earnings $ 0.51 0.82 0.48 0.37 0.47 2.18 1.91
Diluted Earnings 0.51 0.82 0.48 0.37 0.46 2.18 1.90
Cash Dividends $ 0.190 0.180 0.180 0.180 0.180 0.730 0.656
AVERAGE SHARES
Basic 13,955 13,283 13,274 13,262 13,223 13,444 13,222
Diluted 13,961 13,287 13,277 13,286 13,265 13,448 13,251
============================================================================================================================
4
CAPITAL CITY BANK GROUP, INC.
CONSOLIDATED STATEMENT OF FINANCIAL CONDITION
Unaudited
- ----------------------------------------------------------------------------------------------------------------
2004 2003
---------------------------------------------- ----------
Fourth Third Second First Fourth
(Dollars in thousands, except per share data) Quarter Quarter Quarter Quarter Quarter
- ----------------------------------------------------------------------------------------------------------------
ASSETS
Cash and Due From Banks $ 87,039 90,458 97,154 93,427 93,140
Funds Sold 74,506 47,352 107,399 90,469 125,452
- ----------------------------------------------------------------------------------------------------------------
Total Cash and Cash Equivalents 161,545 137,810 204,553 183,896 218,592
Investment Securities, Available-for-Sale 210,240 156,675 183,732 188,763 181,734
Loans, Net of Unearned
Commercial & Industrial 206,474 187,862 187,530 185,237 160,048
Real Estate Construction 140,190 119,248 108,422 96,285 89,149
Real Estate Mortgage 655,426 473,874 466,437 449,677 391,250
Real Estate Residential 425,765 375,109 348,917 340,729 331,452
Real Estate Home Equity 150,061 145,408 133,729 119,496 116,810
Consumer 222,207 212,847 216,553 216,094 202,167
Credit Card 41 170 22,636 22,713 23,987
Other Loans 24,549 21,530 32,572 30,988 19,528
Overdrafts 4,112 4,602 4,701 4,585 7,241
- ----------------------------------------------------------------------------------------------------------------
Total Loans, Net of Unearned 1,828,825 1,540,650 1,521,497 1,465,804 1,341,632
Allowance for Loan Losses (16,037) (12,328) (13,657) (13,720) (12,429)
- ----------------------------------------------------------------------------------------------------------------
Loans, Net 1,812,788 1,528,322 1,507,840 1,452,084 1,329,203
Premises and Equipment 58,963 56,281 56,263 56,394 54,011
Intangible Assets 80,305 39,720 40,608 41,512 25,792
Other Assets 40,172 32,985 33,834 34,604 37,170
- ----------------------------------------------------------------------------------------------------------------
Total Other Assets 179,440 128,986 130,705 132,510 116,973
- ----------------------------------------------------------------------------------------------------------------
Total Assets $2,364,013 1,951,793 2,026,830 1,957,253 1,846,502
================================================================================================================
LIABILITIES
Deposits:
Noninterest Bearing Deposits $ 566,991 518,352 520,118 482,703 455,550
NOW Accounts 338,932 285,851 320,460 294,726 276,934
Money Market Accounts 270,095 209,262 214,815 222,298 207,934
Regular Savings Accounts 147,348 129,461 130,822 128,767 110,834
Certificates of Deposit 571,520 427,621 426,521 443,172 422,953
- ----------------------------------------------------------------------------------------------------------------
Total Deposits 1,894,886 1,570,547 1,612,736 1,571,666 1,474,205
Short-Term Borrowings 96,014 76,216 127,012 112,343 108,184
Subordinate Debentures 30,928 - - - -
Long-Term Debt 68,453 62,930 58,427 49,950 46,475
Other Liabilities 16,932 23,031 18,934 16,366 14,829
- ----------------------------------------------------------------------------------------------------------------
Total Liabilities 2,107,213 1,732,724 1,817,109 1,750,325 1,643,693
- ----------------------------------------------------------------------------------------------------------------
SHAREOWNERS' EQUITY
Common Stock 142 133 133 132 132
Additional Paid-in-Capital 52,363 18,411 17,922 17,788 16,157
Retained Earnings 204,648 200,073 191,645 187,592 185,134
Accumulated Other Comprehensive Income (353) 452 21 1,416 1,386
- ----------------------------------------------------------------------------------------------------------------
Total Shareowners' Equity 256,800 219,069 209,721 206,928 202,809
- ----------------------------------------------------------------------------------------------------------------
Total Liabilities and Owners' Equity $2,364,013 1,951,793 2,026,830 1,957,253 1,846,502
================================================================================================================
OTHER BALANCE SHEET DATA
Earning Assets $2,113,571 1,744,677 1,812,628 1,745,036 1,648,818
Intangible Assets
Goodwill 54,341 19,657 19,656 19,633 6,680
Deposit Base 23,778 18,897 19,786 20,683 19,112
Other 2,186 1,166 1,166 1,196 -
Interest Bearing Liabilities 1,523,290 1,191,341 1,278,057 1,251,256 1,173,314
- ----------------------------------------------------------------------------------------------------------------
Book Value Per Diluted Share $ 18.13 16.48 15.80 15.54 15.27
Tangible Book Value Per Diluted Share 12.46 13.50 12.74 12.43 13.33
- ----------------------------------------------------------------------------------------------------------------
Actual Basic Shares Outstanding 14,155 13,285 13,275 13,273 13,236
Actual Diluted Shares Outstanding 14,161 13,289 13,277 13,312 13,280
================================================================================================================
5
CAPITAL CITY BANK GROUP, INC.
ALLOWANCE FOR LOAN LOSSES
AND NONPERFORMING ASSETS
Unaudited
- ----------------------------------------------------------------------------------------------------------------
2004 2003
--------------------------------------------- -----------
Fourth Third Second First Fourth
(Dollars in thousands, except per share data) Quarter Quarter Quarter Quarter Quarter
- -----------------------------------------------------------------------------------------------------------------
ALLOWANCE FOR LOAN LOSSES
Balance at Beginning of Period $12,328 13,657 13,720 12,429 12,424
Acquired Reserves 4,400 0 6 1,307 0
Reserve Reversal - Credit Card 0 -800 0 0 0
Provision for Loan Losses 300 300 580 961 850
Net Charge-Offs 991 829 649 977 845
- -----------------------------------------------------------------------------------------------------------------
Balance at End of Period $16,037 12,328 13,657 13,720 12,429
=================================================================================================================
As a % of Loans 0.88% 0.80 0.90 0.94 0.93
As a % of Nonperforming Loans 345.18 261.91 452.82 717.20 529.80
As a % of Nonperforming Assets 304.25 220.10 334.73 459.63 170.24
=================================================================================================================
CHARGE-OFFS
Commercial, Financial and Agricultural $ 234 187 286 167 46
Real Estate - Construction 0 0 0 0 0
Real Estate - Mortgage 9 0 0 39 0
Real Estate - Residential 78 19 11 83 58
Consumer 1.015 998 885 1,047 1,054
- -----------------------------------------------------------------------------------------------------------------
Total Charge-Offs $ 1,336 1,204 1,182 1,336 1,158
=================================================================================================================
RECOVERIES
Commercial, Financial and Agricultural $ 34 10 24 12 13
Real Estate - Construction 0 0 0 0 0
Real Estate - Mortgage 0 14 0 0 0
Real Estate - Residential 12 1 176 0 17
Consumer 299 350 333 347 283
- -----------------------------------------------------------------------------------------------------------------
Total Recoveries $ 345 375 533 359 313
=================================================================================================================
NET CHARGE-OFFS $ 991 829 649 977 845
=================================================================================================================
Net Charge-Offs as a % of Average Loans 0.22% 0.22 0.18 0.29 0.25
=================================================================================================================
RISK ELEMENT ASSETS
Nonaccruing Loans $ 4,646 4,707 3,016 1,913 2,3466
Restructured 0 0 0 0 0
- -----------------------------------------------------------------------------------------------------------------
Total Nonperforming Loans 4,646 4,707 3,016 1,913 2,346
Other Real Estate 625 894 1,064 1,072 4,955
- -----------------------------------------------------------------------------------------------------------------
Total Nonperforming Assets $ 5,271 5,601 4,080 2,985 7,301
=================================================================================================================
Past Due Loans 90 Days or More $ 605 196 330 1,351 328
=================================================================================================================
Nonperforming Loans as a % of Loans 0.25% 0.31 0.20 0.13 0.17
Nonperforming Assets as a % of
Loans and Other Real Estate 0.29 0.36 0.27 0.20 0.54
Nonperforming Assets as a % of Capital 1.93 2.42 1.83 1.35 3.39
=================================================================================================================
Annualized
Capital includes allowance for loan losses.
6
CAPITAL CITY BANK GROUP, INC.
AVERAGE BALANCE AND INTEREST RATES
Unaudited
- -------------------------------------------------------------------------------------------------------------------------------
Fourth Quarter 2004 Third Quarter 2004 Second 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 $1,179,736 $28,180 6.30% 1,524,401 23,345 6.09 1,491,142 22,961 6.19
Investment Securities
Taxable Investment Securities 152,049 1,029 2.71 118,903 729 2.45 134,634 745 2.21
Tax-Exempt Investment Securities 51,688 696 5.38 51,768 716 5.53 50,191 732 5.83
- --------------------------------------------------------------------------------------------------------------------------------
Total Investment Securities 203,737 1,725 3.39 170,671 1,445 3.38 184,825 1,477 3.20
Funds Sold 82,638 348 1.65 39,636 147 1.45 45,688 116 1.01
- --------------------------------------------------------------------------------------------------------------------------------
Total Earning Assets 2,066,111 $30,253 5.83% 1,734,708 24,937 5.72 1,721,655 24,554 5.74
============== ============ ============
Cash and Due From Banks 101,959 90,010 89,921
Allowance For Loan Losses (15,813) (13,029) (13,804)
Other Assets 170,613 129,683 131,713
- -------------------------------------------------------- --------- ---------
Total Assets $2,322,870 1,941,372 1,929,485
======================================================== ========= =========
LIABILITIES:
Interest Bearing Deposits
NOW Accounts $ 333,839 335 0.40% 280,630 153 0.22 283,297 121 0.17
Money Market Accounts 267,710 467 0.69 212,426 245 0.46 215,746 239 0.44
Savings Accounts 144,967 72 0.20 130,330 32 0.10 129,684 32 0.10
Time Deposits 553,435 3,228 2.32 429,702 2,004 1.86 433,514 1,993 1.85
- --------------------------------------------------------------------------------------------------------------------------------
1,299,951 4,102 1.25 1,053,088 2,434 0.92 1,062,241 2,385 0.90
Short-Term Borrowings 92,193 402 1.74 96,146 332 1.37 109,723 249 0.91
Subordinate Debentures 20,507 294 5.71 0 0 0.00 0 0 0.00
Long-Term Debt 77,041 836 4.32 59,837 642 4.27 53,752 587 4.39
- --------------------------------------------------------------------------------------------------------------------------------
Total Interest Bearing Liabilities 1,489,692 $ 5,534 1.50% 1,209,071 3,408 1.12 1,225,716 3,221 1.06
============== ============ ============
Noninterest Bearing Deposits 553,637 492,136 476,389
Other Liabilities 30,768 22,892 17,169
- -------------------------------------------------------- --------- ---------
Total Liabilities 2,074,097 1,724,099 1,719,274
SHAREOWNERS' EQUITY: $ 248,773 217,273 210,211
- -------------------------------------------------------- --------- ---------
Total Liabilities and Shareowners' Equity $2,322,870 1,941,372 1,929,485
======================================================== ========= =========
Interest Rate Spread $24,619 4.33% 21,529 4.60 21,333 4.68
======================================================================== ============ ============
Interest Income and Rate Earned $30,253 5.83 24,937 5.72 24,554 5.74
Interest Expense and Rate Paid 5,634 1.08 3,408 0.78 3,221 0.75
- ------------------------------------------------------------------------ ------------ ------------
Net Interest Margin $24,619 4.75% 21,529 4.94 21,333 4.99
======================================================================== ============ ============
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
- ----------------------------------------------------------------------------------------------------
First Quarter 2004 Fourth Quarter 2003
------------------------- -------------------------
Average Average Average Average
(Dollars in thousands) 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
Investment Securities
Taxable Investment Securities 121,702 635 2.09 133,029 774 2.31
Tax-Exempt Investment Securities 54,274 822 6.06 58,006 875 6.03
- ---------------------------------------------------------------------------------------------------
Total Investment Securities 175,976 1,457 3.31 191,035 1,649 3.45
Funds Sold 101,286 222 0.87 115,561 274 0.93
- ---------------------------------------------------------------------------------------------------
Total Earning Assets 1,634,468 $22,989 5.66% 1,636,269 23,359 5.66
============== ============
Cash and Due From Banks 90,327 81,272
Allowance For Loan Losses (12,725) (12,494)
Other Assets 118,426 114,505
- -------------------------------------------------------- ---------
Total Assets $1,830,496 1,819,552
======================================================== =========
LIABILITIES:
Interest Bearing Deposits
NOW Accounts $ 271,878 $ 124 0.18% 273,497 130 0.19
Money Market Accounts 215,078 239 0.45 215,540 242 0.44
Savings Accounts 115,985 28 0.10 111,957 28 0.10
Time Deposits 420,501 2,003 1.92 429,209 2,158 1.99
- ---------------------------------------------------------------------------------------------------
1,023,442 2,394 0.94 1,030,203 2,558 0.99
Short-Term Borrowings 104,406 288 1.11 103,606 319 1.22
Subordinate Debentures 0 0 0.00 0 0 0.00
Long-Term Debt 47,023 497 4.25 42,881 462 4.27
- ---------------------------------------------------------------------------------------------------
Total Interest Bearing Liabilities 1,174,871 $ 3,179 1.09% 1,176,690 3,339 1.13
============== ============
Noninterest Bearing Deposits 433,718 420,892
Other Liabilities 15,512 20,031
- -------------------------------------------------------- ---------
Total Liabilities 1,624,101 1,617,613
SHAREOWNERS' EQUITY: $ 206,395 201,939
- -------------------------------------------------------- ---------
Total Liabilities and Shareowners' Equity $1,830,496 1,819,552
======================================================== =========
Interest Rate Spread $19,810 4.57 20,020 4.53
======================================================================== ============
Interest Income and Rate Earned $22,989 5.66 23,359 5.66
Interest Expense and Rate Paid 3,179 0.78 3,339 0.81
- ------------------------------------------------------------------------ ------------
Net Interest Margin $19,810 4.88 20,020 4.85
======================================================================== ============
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
- ----------------------------------------------------------------------------------------------------
Twelve Months Ended Twelve Months Ended
Dec. 31, 2004 Dec. 31, 2003
------------------------- -------------------------
Average Average Average Average
(Dollars in thousands) Balance Interest Rate Balance Interest Rate
- -------------------------------------------- ------------------------- -------------------------
ASSETS:
Loans, Net of Unearned Interest $1,538,744 $ 95,796 6.23% 1,318,080 87,608 6.65
Investment Securities
Taxable Investment Securities 131,842 3,138 2.38 124,541 3,725 2.98
Tax-Exempt Investment Securities 51,979 2,965 5.70 61,387 3,650 5.95
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Total Investment Securities 183,821 6,103 3.32 185,928 7,375 3.97
Funds Sold 67,278 833 1.22 120,672 1,261 1.03
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Total Earning Assets 1,789,843 $102,732 5.74% 1,624,680 96,244 5.92
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Cash and Due From Banks 93,070 79,625
Allowance For Loan Losses (13,846) (12,544)
Other Assets 137,678 113,134
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Total Assets $2,006,745 1,804,895
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LIABILITIES:
Interest Bearing Deposits
NOW Accounts $ 292,492 $ 733 0.25% 264,159 676 0.26
Money Market Accounts 227,808 1,190 0.52 215,597 1,312 0.61
Savings Accounts 130,282 164 0.13 109,837 189 0.17
Time Deposits 459,464 9,228 2.01 433,176 9,390 2.17
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1,110,046 11,315 1.02 1,022,769 11,567 1.13
Short-Term Borrowings 100,582 1,270 1.26 101,274 1,270 1.25
Subordinate Debentures 5,155 294 5.71 0 0 0.00
Long-Term Debt 59,462 2,562 4.31 55,594 2,002 3.60
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Total Interest Bearing Liabilities 1,275,245 $ 15,441 1.21% 1,179,637 14,839 1.26
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Noninterest Bearing Deposits 489,155 409,039
Other Liabilities 21,614 19,631
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Total Liabilities 1,786,014 1,608,307
SHAREOWNERS' EQUITY: $ 220,731 196,588
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Total Liabilities and Shareowners' Equity $2,006,745 1,804,895
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Interest Rate Spread $ 87,291 4.53% 81,405 4.66
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Interest Income and Rate Earned $102,732 5.74 96,244 5.92
Interest Expense and Rate Paid 15,441 0.86 14,839 0.91
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Net Interest Margin $ 87,291 4.88% 81,405 5.01
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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.
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