Exhibit 99.1 Capital City Bank Group, Inc.'s Press Release, dated
January 26, 2006
[CCBG LOGO]
Corporate Headquarters
217 North Monroe Street News Release
Tallahassee, FL 32301 For Immediate Release January 26, 2006
- -----------------------------------------------------------------------------
For Information Contact:
J. Kimbrough Davis
Executive Vice President and Chief Financial Officer
850.671.0610
Capital City Bank Group, Inc.
Reports 2005 Earnings of $1.66 per Diluted Share,
Up 11.9% from 2004 (Before one-time gain)(1)
TALLAHASSEE, Fla.-
HIGHLIGHTS
* 2005 earnings of $30.3 million, or $1.66 per diluted share, increases of
20.4% and 11.9%, respectively, over 2004 core earnings (excluding the one-
time after-tax gain on the sale of the credit card portfolio of $4.2
million, or $.26 per diluted share). Fourth quarter 2005 earnings totaled
$7.5 million, or $.40 per diluted share compared to $7.3 million, or $.40
per diluted share for the same period in 2004.
* Strong growth in operating revenues as reflected by 27.8% growth in net
interest income and 12.6% increase in noninterest income.
* Continued strong credit quality as reflected by a nonperforming asset
ratio of .27% and a net charge-off ratio of .13%.
* Completed First National Bank of Alachua acquisition in May 2005.
* Well capitalized with a risk based capital ratio of 12.61%.
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)(2) 2005 2005 2004 2005 2004
- ----------------------------------------------------------------------------------------------------------
EARNINGS
Net Income $ 7,459 8,577 7,262 30,281 29,371
Diluted Earnings Per Common Share $ 0.40 0.46 0.40 1.66 1.74
- ----------------------------------------------------------------------------------------------------------
PERFORMANCE
Return on Average Equity 9.67% 11.31 11.61 10.56 13.31
Return on Average Assets 1.14 1.32 1.24 1.22 1.46
Net Interest Margin 5.16 5.17 4.75 5.09 4.88
Noninterest Income as % of Operating Revenue 30.68 31.15 32.91 30.91 37.00
Efficiency Ratio 65.22 63.60 63.85 64.79 61.56
- ----------------------------------------------------------------------------------------------------------
CAPITAL ADEQUACY
Tier 1 Capital Ratio 12.61% 12.35 11.44 12.61 11.44
Total Capital Ratio 13.56 13.29 12.33 13.56 12.33
Leverage Ratio 10.27 10.20 8.79 10.27 8.79
Equity to Assets 11.66 11.67 10.86 11.66 10.86
- --------------------------------------------------------------------------------------------------------
(1) Analysis of annual earnings performance excludes from 2004 revenues, a one-time, non-recurring
pre-tax gain of $6.9 million ($4.2 million after-tax, or $.26 per diluted share) recognized from
the sale of the bank's credit card portfolio during the third quarter of 2004.
(2) All share and per share data have been restated to reflect the 5-for-4 stock split effective
July 1, 2005.
Page 1 of 10
- ----------------------------------------------------------------------------------------------------------
Three Months Ended Twelve Months Ended
-------------------------------- --------------------
Dec. 31, Sept. 30, Dec. 31, Dec. 31, Dec. 31,
(Dollars in thousands, except per share data)(1) 2005 2005 2004 2005 2004
- ----------------------------------------------------------------------------------------------------------
ASSET QUALITY
Allowance as % of Non-Performing Loans 333.11% 342.79 345.18 331.11 345.18
Allowance as a % of Loans 0.84 0.85 0.88 0.84 0.88
Net Charge-Offs as % of Average Loans 0.26 0.08 0.22 0.13 0.22
Nonperforming Assets as % of Loans and ORE 0.27 0.36 0.29 0.27 0.29
- ----------------------------------------------------------------------------------------------------------STOCK PERFORMANCE
High $ 39.33 38.72 36.78 39.33 36.78
Low 33.21 31.78 30.17 28.02 26.66
Close $ 34.29 37.71 33.44 34.29 33.44
Average Daily Trading Volume 15,266 18,024 14,295 19,493 13,451
- ----------------------------------------------------------------------------------------------------------
(1) All share and per share data have been restated to reflect the 5-for-4 stock split effective
July 1, 2005.
Capital City Bank Group, Inc. (NASDAQ: CCBG) reported earnings for the year
ended 2005 totaling $30.3 million, or $1.66 per diluted share. This compares
to $29.4 million or $1.74 per diluted share in 2004, which included a one-
time after-tax gain of $4.2 million, or $.26 per diluted share from the sale
of the bank's credit card portfolio. Core earnings (reported earnings
excluding the after-tax gain) increased 20.4% and 11.9% on a dollar and per
diluted share basis, respectively. For the fourth quarter of 2005, earnings
totaled $7.5 million, or $.40 per diluted share. This compares to $7.3
million or $.40 per diluted share for the fourth quarter of 2004. For the
year 2005, the Return on Average Assets was 1.22% and the Return on Average
Equity was 10.56%, compared to 1.46% and 13.31%, respectively, for 2004.
The growth in core earnings for the year was attributable to an increase in
operating revenue (defined as net interest income plus noninterest income
less the pre-tax gain) of $29.4 million, or 22.7%, partially offset by a
higher loan loss provision of $0.4 million, or 17.1%, an increase in
noninterest expense of $20.6 million, or 23.1%, and a higher income tax
provision of $3.3 million, or 25.1%. The increase in operating revenues
reflects a 27.8% increase in net interest income and a 12.6% increase in
noninterest income.
The growth in net interest income for the year is reflective of earning asset
growth and an improved net interest margin. Higher deposit service charge
fees, mortgage banking fees, asset management fees, and merchant fees drove
the increase in noninterest income. The increase in noninterest expense is
primarily attributable to higher operating costs associated with the
integration of two recent acquisitions, which added 12 new offices to the
Capital City franchise, and marketing costs supporting the Company's new
"Absolutely Free Checking" product.
Fourth quarter 2005 earnings of $7.5 million, or $.40 per diluted share were
flat compared to the same period in 2004. Favorable variances in the margin
and noninterest income were offset by an increase in the provision for loan
losses and higher expense levels. The higher loan loss provision for the
quarter reflects an increase in net charge-offs, while higher expense levels
are attributable to integration of recent acquisitions (including the
addition of new associates, offices and a higher level of intangible
amortization), professional fees, and marketing support for "Absolutely Free
Checking." The increase in professional fees is due to higher than expected
fees for 2005 Sarbanes-Oxley Section 404 testing and various consulting
projects.
William G. Smith, Jr., Chairman, President and CEO, stated "Capital City had
a solid year in 2005. We enjoyed an expanding margin, growth in noninterest
income and credit losses of only 13 basis points, reflecting our strong
credit culture. As we begin 2006, business conditions are favorable and
Capital City has a well-defined strategy. We continue to make great strides
to achieve our Project 2010 goal of $50 million in annual earnings."
Taxable equivalent net interest income in 2005 grew $23.9 million, or 27.4%
over 2004 due to higher interest income driven by acquisitions, organic
growth and higher asset yields, partially offset by higher deposit costs.
The full year net interest margin of 5.09% increased 21 basis points from the
comparable period in 2004 reflective of a 72 basis point improvement in
earning asset
Page 2 of 10
yield offset by a 51 basis point increase in the cost of funds. The
improvement in yield is primarily attributable to the higher level of
interest rates during the year, which affected both new loan production and
assets subject to repricing. The higher interest expense is reflective of
the increased competition for deposits and the continued pressure in most
markets to increase rates resulting from the Federal Reserve rate hikes.
Deposit rate pressure may have an adverse effect on the margin in 2006.
Provision for loan losses for the year totaled $2.5 million compared to $2.1
million in 2004. The 2004 provision was positively impacted by a re-
assessment of the reserve to reflect the overall reduction in risk
attributable to Capital City's sale of its credit card portfolio during the
third quarter of 2004. Net charge-offs totaled $2.5 million, or .13% of
average loans for the year compared to $3.4 million (includes credit card
charge-offs), or .22% for 2004. At year-end the allowance for loan losses
was .84% of outstanding loans and provided coverage of 331% of nonperforming
loans.
Noninterest income (excluding the gain on sale of credit card portfolio)
increased $5.5 million, or 12.6%, over 2004 primarily due to higher deposit
service charge fees, asset management fees, mortgage banking fees, and
merchant fees. The increase in deposit service charge fees is due to the
growth in deposit accounts attributable to recent acquisitions, and
"Absolutely Free Checking". Improvement in asset management fees is the
result of new business, which produced growth in assets of $118.0 million.
Higher mortgage banking revenues is reflective of a 19.2% increase in
production over 2004 and the improvement in merchant fees directly correlates
with the growth in merchant card transaction volume.
Noninterest expense grew by $20.6 million, or 23.1%, over 2004. Higher
expense for compensation, occupancy, professional fees, advertising, and
intangible amortization were the primary reasons for the increase. The
increase in compensation was driven by higher expense for associate salaries,
pension, and insurance benefits, primarily reflective of the integration of
associates from acquisitions in late 2004 and mid-2005. The increase in
occupancy was driven by higher expense for depreciation, maintenance and
repair, and property taxes, primarily attributable to the increase in the
number of banking offices, and higher expense for core processing and other
software maintenance agreements. The higher level of professional fees is
reflective of Sarbanes-Oxley Section 404 testing work and various consulting
projects initiated during the year. The increase in advertising expense is
reflective of the marketing support costs for the "Absolutely Free Checking"
campaign. The increase in intangible amortization reflects core deposit
amortization from recent acquisitions.
Average earning assets for the fourth quarter increased $212.9 million, or
10.3%, over the comparable quarter in 2004. The increase in earning assets
is primarily attributable to an increase in average loans of $283.0 million
reflecting acquisitions and strong organic loan growth.
Nonperforming assets of $5.6 million increased from the fourth quarter of
2004 by $.3 million. The increase in the level of nonperforming assets is
due to a slight increase in the level of non-accrual loans. Nonperforming
assets represented .27% of total loans and other real estate at the end of
the fourth quarter compared to .29% for the same period in 2004.
Average total deposits increased $170.4 million, or 9.2%, from the fourth
quarter of 2004, driven by a $149.9 million increase in NOW deposits and a
$40.3 million increase in MMA deposits. The increase in the NOW balance is
primarily reflective of recent acquisitions and accounts acquired as part of
the "Absolutely Free Checking" campaign. The increase in the MMA balance is
primarily due to a fourth quarter 2005 money market account promotion.
The Company ended the fourth quarter with approximately $5.7 million in
average net overnight funds purchased as compared to $60.6 million in net
overnight funds sold in the fourth quarter of 2004 and $21.9 million in net
overnight funds purchased for the prior quarter. The decline from the fourth
quarter of 2004 is primarily reflective of the Company's loan growth, while
the improvement from the prior quarter is primarily due to a money market
promotion and seasonal variation in public funds deposits.
Page 3 of 10
About Capital City Bank Group, Inc.
Capital City Bank Group, Inc. (NASDAQ: CCBG) is one of the largest financial
services companies headquartered in Florida and has more than $2.6 billion in
assets. The Company provides a full range of banking services, including
traditional deposit and credit services, asset management, trust, mortgage
banking, merchant services, bankcards, data processing and securities
brokerage services. The Company's bank subsidiary, Capital City Bank, was
founded in 1895 and now has 69 banking offices, four mortgage lending
offices, and 79 ATMs in Florida, Georgia and Alabama. In 2005, Mergent, Inc.,
a leading provider of information on publicly traded companies, named the
Company as a Dividend Achiever, a list of public companies that have
increased their regular cash dividends for at least 10 consecutive years. Of
all publicly traded U.S. companies that pay dividends, less than three
percent made this list. For more information about Capital City Bank Group,
Inc., visit www.ccbg.com.
FORWARD-LOOKING STATEMENTS
"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.
These uncertainties and risks could cause future results to differ materially
from those anticipated by such statements. The following factors, among
others, could cause actual results to differ from those set forth in these
forward-looking statements: our ability to integrate business and operations
of companies and banks that we have acquired, and those we may acquire in the
future; legislative or regulatory changes; changes in the interest rate
environment; changes in the securities and real estate markets; increased
competition and its effects on pricing; changes in monetary and fiscal
policies of the U.S. government; and changes in accounting principles,
policies, practices, or guidelines. Additional factors that could cause the
Company's results to differ materially from those described in the forward-
looking statements can be found in Capital City Bank Group's Annual Report on
Form 10-K for the fiscal year ended December 31, 2004, and the Company's
other filings with the Securities and Exchange Commission ("SEC") and
available at the SEC's internet site (http://www.sec.gov). The forward-
looking statements in this press release speak only as of the date of the
press release, and the Company assumes no obligation to update the forward-
looking statements or to update the reasons why actual results could differ
from those contained in the forward-looking statements.
Page 4 of 10
CAPITAL CITY BANK GROUP, INC.
CONSOLIDATED STATEMENT OF INCOME
Unaudited
- -------------------------------------------------------------------------------------------------------------------------------
2005 2004 Twelve Months Ended
----------------------------------------- -------- December 31,
Fourth Third Second First Fourth -------------------
(Dollars in thousands, except per share data)(1) Quarter Quarter Quarter Quarter Quarter 2005 2004
- -------------------------------------------------------------------------------------------------------------------------------
INTEREST INCOME
Interest and Fees on Loans $36,990 35,331 32,105 28,842 28,097 133,268 95,607
Interest on Investment Securities 1,437 1,437 1,447 1,473 1,485 5,794 5,085
Interest on Funds Sold 353 121 358 159 348 991 833
- ------------------------------------------------------------------------------------------------------------------------------
Total Interest Income 38,780 36,889 33,910 30,474 29,930 140,053 101,525
- ------------------------------------------------------------------------------------------------------------------------------
INTEREST EXPENSE
Interest on Deposits 6,727 5,480 4,618 4,309 4,102 21,134 11,315
Interest on Short-term Borrowings 979 691 734 450 402 2,854 1,270
Interest on Subordinated Note Payable 942 931 667 441 294 2,981 294
Interest on Other Long-term Borrowings 822 783 769 720 836 3,094 2,562
- ------------------------------------------------------------------------------------------------------------------------------
Total Interest Expense 9,470 7,885 6,788 5,920 5,634 30,063 15,441
- ------------------------------------------------------------------------------------------------------------------------------
Net Interest Income 29,310 29,004 27,122 24,554 24,296 109,990 86,084
Provision for Loan Losses 1,333 376 388 410 300 2,507 2,141
- ------------------------------------------------------------------------------------------------------------------------------
Net Interest Income after Provision for Loan Losses 27,977 28,628 26,734 24,144 23,996 107,483 83,943
==============================================================================================================================
NONINTEREST INCOME
Service Charge Revenue 5,722 5,635 5,035 4,348 4,716 20,740 17,574
Data Processing Revenue 693 660 650 607 640 2,610 2,628
Fees for Trust Services 1,244 1,050 1,013 1,112 1,281 4,419 4,007
Retail Brokerage Fees 404 305 313 299 324 1.321 1,401
Invest Sec Gain (Losses) - 9 - - 7 9 14
Mortgage Banking Revenue 956 1,317 1,036 763 722 4,072 3,208
Merchant Fees 1,522 1,556 1,532 1,564 1,379 6,174 5,135
Interchange Fees 631 582 535 491 458 2,239 2,228
Gain on Sale of Credit Cards - - - - 324 - 7,181
ATM/Debit Card Fees 582 550 536 538 549 2,206 2,007
Other Fees 1,220 1,459 1,391 1,338 1,520 5,408 5,170
- ------------------------------------------------------------------------------------------------------------------------------
Total Noninterest Income 12,974 13,123 12,041 11,060 11,920 49,198 50,553
==============================================================================================================================
NONINTEREST EXPENSE
Compensation 13,894 14,046 13,187 12,560 11,830 53,687 44,345
Premises 2,202 2,119 2,035 1,937 1,880 8,293 7,074
FF&E 2,381 2,285 2,192 2,112 2,179 8,970 8,393
Intangible Amortization 1,518 1,430 1,296 1,196 1,151 5,440 3,824
Other Expense 9,347 8,729 7,886 7,462 7,877 33,424 25,590
- ------------------------------------------------------------------------------------------------------------------------------
Total Noninterest Expense 29,342 28,609 26,596 25,267 24,917 109,814 89,226
==============================================================================================================================
OPERATING PROFIT 11,609 13,142 12,179 9,937 10,999 46,867 45,270
Provision for Income Taxes 4,150 4,565 4,311 3,560 3,737 16,586 15,899
- ------------------------------------------------------------------------------------------------------------------------------
NET INCOME $ 7,459 8,577 7,868 6,377 7,262 30,281 29,371
==============================================================================================================================
PER SHARE DATA
Basic Earnings $ 0.40 0.46 0.44 0.36 0.40 1.66 1.74
Diluted Earnings 0.40 0.46 0.44 0.36 0.40 1.66 1.74
Cash Dividends 0.163 0.152 0.152 0.152 0.152 0.619 0.584
AVERAGE SHARES
Basic 18,624 18,623 18,094 17,700 17,444 18,264 16,806
Diluted 18,654 18,649 18,102 17,708 17,451 18,281 16,811
==============================================================================================================================
(1) All share and per share data have been restated to reflect the 5-for-4 stock split effective July 1, 2005.
Page 5 of 10
CAPITAL CITY BANK GROUP, INC.
CONSOLIDATED STATEMENT OF FINANCIAL CONDITION
Unaudited
- ---------------------------------------------------------------------------------------------------------------
2005 2004
-------------------------------------------- -----------
Fourth Third Second First Fourth
(Dollars in thousands, except per share data)(1) Quarter Quarter Quarter Quarter Quarter
- ---------------------------------------------------------------------------------------------------------------
ASSETS
Cash and Due From Banks $ 105,195 109,847 117,921 92,868 87,039
Funds Sold 61,164 16,382 59,062 57,115 74,506
- --------------------------------------------------------------------------------------------------------------
Total Cash and Cash Equivalents 166,359 126,229 176,983 149,983 161,545
Investment Securities, Available-for-Sale 171,019 192,435 195,860 190,945 210,240
Loans, Net of Unearned
Commercial & Industrial 218,434 216,695 214,983 196,632 206,474
Real Estate Construction 160,914 152,042 148,462 151,143 140,190
Real Estate Mortgage 718,741 712,682 713,619 639,637 655,426
Real Estate Residential 531,653 526,167 519,441 437,520 425,765
Real Estate Home Equity 165,336 162,309 160,767 151,464 150,061
Consumer 242,481 243,081 242,922 223,145 222,207
Credit Card - 1 49 48 41
Other Loans 26,346 34,225 43,217 42,046 24,549
Overdrafts 3,589 5,690 3,314 2,168 4,112
- --------------------------------------------------------------------------------------------------------------
Total Loans, Net of Unearned 2,067,494 2,052,892 2,046,774 1,843,803 1,828,825
Allowance for Loan Losses (17,410) (17,424) (17,451) (16,040) (16,037)
- --------------------------------------------------------------------------------------------------------------
Loans, Net 2,050,084 2,035,468 2,029,323 1,827,763 1,812,788
Premises and Equipment 73,818 71,044 69,294 60,443 58,963
Intangible Assets 110,451 111,851 113,081 79,139 80,305
Other Assets 50,379 46,475 45,344 40,819 40,172
- --------------------------------------------------------------------------------------------------------------
Total Other Assets 234,648 229,370 227,719 180,401 179,440
- --------------------------------------------------------------------------------------------------------------
Total Assets $2,622,110 2,583,502 2,629,885 2,349,092 2,364,013
==============================================================================================================
LIABILITIES
Deposits:
Noninterest Bearing Deposits $ 559,492 571,880 598,602 555,758 566,991
NOW Accounts 520,878 481,767 475,687 400,816 338,932
Money Market Accounts 331,094 267,074 287,601 250,433 270,095
Regular Savings Accounts 144,296 155,471 162,665 148,578 147,348
Certificates of Deposit 523,586 549,296 576,074 533,773 571,520
- --------------------------------------------------------------------------------------------------------------
Total Deposits 2,079,346 2,025,488 2,100,629 1,889,358 1,894,886
Short-Term Borrowings 82,973 92,746 71,148 78,593 96,014
Subordinated Note Payable 62,887 62,887 62,887 30,928 30,928
Other Long-Term Borrowings 69,630 71,526 73,144 67,879 68,453
Other Liabilities 21,498 29,278 26,655 22,236 16,932
- --------------------------------------------------------------------------------------------------------------
Total Liabilities 2,316,334 2,281,925 2,334,463 2,088,994 2,107,213
- --------------------------------------------------------------------------------------------------------------
SHAREOWNERS' EQUITY
Common Stock 186 186 186 178 178
Additional Paid-in-Capital 83,304 83,185 82,582 52,736 52,327
Retained Earnings 223,532 219,099 213,352 208,334 204,648
Accumulated Other Comprehensive Income (1,246) (893) (698) (1,150) (353)
- --------------------------------------------------------------------------------------------------------------
Total Shareowners' Equity 305,776 301,577 295,422 260,098 256,800
- --------------------------------------------------------------------------------------------------------------
Total Liabilities and Shareowners' Equity $2,622,110 2,583,502 2,629,885 2,349,092 2,364,013
==============================================================================================================
OTHER BALANCE SHEET DATA
Earning Assets $2,299,677 2,261,709 2,301,696 2,091,863 2,113,571
Intangible Assets
Goodwill 84,828 84,710 84,511 54,371 54,341
Deposit Base 23,864 25,275 26,598 22,689 23,778
Other 1,759 1,866 1,972 2,079 2,186
Interest Bearing Liabilities 1,735,344 1,680,767 1,709,206 1,511,000 1,523,290
- --------------------------------------------------------------------------------------------------------------
Book Value Per Diluted Share $ 16.39 16.17 15.87 14.69 14.51
Tangible Book Value Per Diluted Share 10.47 10.17 9.79 10.22 9.97
- --------------------------------------------------------------------------------------------------------------
Actual Basic Shares Outstanding 18,632 18,624 18,614 17,703 17,694
Actual Diluted Shares Outstanding 18,662 18,649 18,617 17,705 17,701
==============================================================================================================
(1) All share and per share data have been restated to reflect the 5-for-4 stock split effective July 1, 2005.
Page 6 of 10
CAPITAL CITY BANK GROUP, INC.
ALLOWANCE FOR LOAN LOSSES
AND NONPERFORMING ASSETS
Unaudited
- ------------------------------------------------------------------------------------------------------------
2005 2004
-------------------------------------------- ----------
Fourth Third Second First Fourth
(Dollars in thousands) Quarter Quarter Quarter Quarter Quarter
- ------------------------------------------------------------------------------------------------------------
ALLOWANCE FOR LOAN LOSSES
Balance at Beginning of Period $17,424 17,451 16,040 16,037 12,328
Acquired Reserves - - 1,385 - 4,400
Provision for Loan Losses 1,333 376 388 410 300
Net Charge-offs 1,347 403 362 407 991
- -----------------------------------------------------------------------------------------------------------
Balance at End of Period $17,410 17,424 17,451 16,040 16,037
===========================================================================================================
As a % of Loans 0.84% 0.85 0.85 0.87 0.88
As a % of Nonperforming Loans 333.11 342.79 289.12 302.13 345.18
As a % of Nonperforming Assets 313.69 236.07 280.65 284.25 304.25
===========================================================================================================
CHARGE-OFFS
Commercial, Financial and Agricultural $ 745 151 302 88 234
Real Estate - Construction - - - - -
Real Estate - Mortgage 245 4 2 4 9
Real Estate - Residential 145 115 37 25 78
Consumer 575 551 536 718 1,015
- -----------------------------------------------------------------------------------------------------------
Total Charge-offs $ 1,710 821 877 835 1,336
===========================================================================================================
RECOVERIES
Commercial, Financial and Agricultural $ 30 43 98 9 34
Real Estate - Construction - - - - -
Real Estate - Mortgage 1 1 - - -
Real Estate - Residential 1 20 14 2 12
Consumer 331 354 403 417 299
- -----------------------------------------------------------------------------------------------------------
Total Recoveries $ 363 418 515 428 345
===========================================================================================================
NET CHARGE-OFFS $ 1,347 403 362 407 991
===========================================================================================================
Net charge-offs as a % of Average Loans(1) 0.26% 0.08 0.08 0.09 0.22
===========================================================================================================
RISK ELEMENT ASSETS
Nonaccruing Loans $ 5,258 5,083 6,036 5,309 4,646
Restructured - - - - -
- -----------------------------------------------------------------------------------------------------------
Total Nonperforming Loans 5,258 5,083 6,036 5,309 4,646
Other Real Estate 292 2,298 182 334 625
- -----------------------------------------------------------------------------------------------------------
Total Nonperforming Assets $ 5,550 7,381 6,218 5,643 5,271
===========================================================================================================
Past Due Loans 90 Days or More $ 309 473 562 298 605
===========================================================================================================
Nonperforming Loans as a % of Loans 0.25% 0.25 0.29 0.29 0.25
Nonperforming Assets as a % of
Loans and Other Real Estate 0.27 0.36 0.30 0.31 0.29
Nonperforming Assets as a % of Capital(2) 1.72 2.31 1.99 2.04 1.93
===========================================================================================================
(1) Annualized
(2) Capital includes allowance for loan losses.
Page 7 of 10
CAPITAL CITY BANK GROUP, INC.
AVERAGE BALANCE AND INTEREST RATES(1)
Unaudited
- ---------------------------------------------------------------------------------------------------------------------------------
Fourth Quarter 2005 Third Quarter of 2005 Second Quarter 2005
------------------------- -------------------------- -------------------------
Average Average Average Average Average Average
(Dollars in thousands) Balance Interest Rate Balance Interest Rate Balance Interest Rate
- ------------------------------------------------------------------------- ------------------------- ------------------------
ASSETS:
Loans, Net of Unearned Interest $2,062,775 $37,112 7.14% 2,046,968 35,433 6.87 1,932,637 32,200 6.68
Investment Securities
Taxable Investment Securities 128,478 1,025 3.18 137,970 1,022 2.95 149,958 1,113 2.96
Tax-Exempt Investment Securities 55,481 632 4.55 56,079 638 4.55 41,316 513 4.97
- ----------------------------------------------------------------------------------------------------------------------------------
Total Investment Securities 183,959 1,657 3.60 194,049 1,660 3.42 191,274 1,626 3.40
Funds Sold 32,276 353 4.28 9,885 121 4.79 46,572 358 3.04
- ----------------------------------------------------------------------------------------------------------------------------------
Total Earning Assets 2,279,010 $39,122 6.81% 2,250,902 37,214 6.56 2,170,483 34,184 6.32
============== ============ ============
Cash and Due From Banks 114,650 106,638 104,336
Allowance For Loan Losses (17,568) (17,570) (16,998)
Other Assets 231,505 229,554 200,967
- -------------------------------------------------------- --------- ---------
Total Assets 2,607,597 2,569,524 2,458,788
======================================================== ========= =========
LIABILITIES:
Interest Bearing Deposits
NOW Accounts $ 483,780 1,088 0.89% 463,936 773 0.66 413,799 560 0.54
Money Market Accounts 307,971 1,820 2.34 272,724 1,062 1.54 270,195 830 1.23
Savings Accounts 149,431 67 0.18 159,080 75 0.19 155,286 75 0.19
Time Deposits 539,695 3,752 2.76 563,595 3,570 2.51 547,919 3,153 2.31
- ----------------------------------------------------------------------------------------------------------------------------------
Total Interest Bearing Deposits 1,480,877 6,727 1.80 1,459,335 5,480 1.49 1,387,199 4,618 1.34
Short-Term Borrowings 113,600 979 3.42 89,483 691 3.07 108,508 734 2.71
Subordinated Note Payable 62,887 942 5.94 62,887 931 5.87 45,681 667 5.86
Other Long-Term Borrowings 71,224 822 4.58 72,408 783 4.29 68,975 769 4.47
- ----------------------------------------------------------------------------------------------------------------------------------
Total Interest Bearing Liabilities 1,728,588 $ 9,470 2.17% 1,684,113 7,885 1.86 1,610,363 6,788 1.69
============== ============ ============
Noninterest Bearing Deposits 543,140 554,092 544,945
Other Liabilities 29,661 30,388 25,373
- -------------------------------------------------------- --------- ---------
Total Liabilities 2,301,389 2,268,593 2,180,681
SHAREOWNERS' EQUITY: $ 306,208 300,931 278,107
- -------------------------------------------------------- --------- ---------
Total Liabilities and Shareowners' Equity $2,607,597 2,569,524 2,458,788
======================================================== ========= =========
Interest Rate Spread $29,652 4.64% 29,329 4.70 27,396 4.63
======================================================================== ============ ============
Interest Income and Rate Earned(2) $39,122 6.81 37,214 6.56 34,184 6.32
Interest Expense and Rate Paid 9,470 1.65 7,885 1.39 6,788 1.25
- ------------------------------------------------------------------------ ------------ ------------
Net Interest Margin $29,652 5.16% 29,329 5.17 27,396 5.07
======================================================================== ============ ============
(1) Interest and average rates are calculated on a tax-equivalent basis using the 35% Federal tax rate.
(2) Rate calculated based on average earning assets.
8
CAPITAL CITY BANK GROUP, INC.
AVERAGE BALANCE AND INTEREST RATES(1)
Unaudited
- ----------------------------------------------------------------------------------------------------
First Quarter of 2005 Fourth Quarter 2004
------------------------- -------------------------
Average Average Average Average
(Dollars in thousands) Balance Interest Rate Balance Interest Rate
- ------------------------------------------------------------------------ -------------------------
ASSETS:
Loans, Net of Unearned Interest $1,827,327 $28,920 6.42% 1,779,736 28,180 6.30
Investment Securities
Taxable Investment Securities 153,543 1,090 2.85 152,049 1,029 2.71
Tax-Exempt Investment Securities 43,928 586 5.33 51,688 696 5.38
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Total Investment Securities 197,471 1,676 3.40 203,737 1,725 3.39
Funds Sold 22,251 159 2.85 82,638 348 1.65
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Total Earning Assets 2,047,049 $30,755 6.09% 2,066,111 30,253 5.83
============== ============
Cash and Due From Banks 97,322 101,959
Allowance For Loan Losses (16,167) (15,813)
Other Assets 178,603 170,613
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Total Assets $2,306,807 2,322,870
======================================================== =========
LIABILITIES:
Interest Bearing Deposits
NOW Accounts $ 359,151 $ 447 0.50% 333,839 335 0.40
Money Market Accounts 251,849 625 1.01 267,710 467 0.69
Savings Accounts 147,676 75 0.21 144,967 72 0.20
Time Deposits 552,069 3,162 2.32 553,435 3,228 2.32
- ---------------------------------------------------------------------------------------------------
1,310,745 4,309 1.33 1,299,951 4,102 1.25
Short-Term Borrowings 79,582 450 2.29 92,193 402 1.74
Subordinated Note Payable 30,928 441 5.79 20,507 294 5.71
Other Long-Term Borrowings 68,200 720 4.28 77,041 836 4.32
- ---------------------------------------------------------------------------------------------------
Total Interest Bearing Liabilities 1,489,455 $ 5,920 1.61% 1,489,692 5,634 1.50
============== ============
Noninterest Bearing Deposits 536,633 553,637
Other Liabilities 19,773 30,768
- -------------------------------------------------------- ---------
Total Liabilities 2,045,861 2,074,097
SHAREOWNERS' EQUITY: $ 260,946 248,773
- -------------------------------------------------------- ---------
Total Liabilities and Shareowners' Equity $2,306,807 2,322,870
======================================================== =========
Interest Rate Spread $24,835 4.48% 24,619 4.33
======================================================================== ============
Interest Income and Rate Earned(2) $30,755 6.09 30,253 5.83
Interest Expense and Rate Paid 5,920 1.17 5,634 1.08
- ------------------------------------------------------------------------ ------------
Net Interest Margin $24,835 4.92% 24,619 4.75
======================================================================== ============
(1) Interest and average rates are calculated on a tax-equivalent basis using the 35% Federal tax rate.
(2) Rate calculated based on average earning assets.
9
CAPITAL CITY BANK GROUP, INC.
AVERAGE BALANCE AND INTEREST RATES(1)
Unaudited
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Twelve Months Ended Twelve Months Ended
Dec. 31, 2005 Dec. 31, 2004
------------------------- -------------------------
Average Average Average Average
(Dollars in thousands) Balance Interest Rate Balance Interest Rate
- ------------------------------------------------------------------------ -------------------------
ASSETS:
Loans, Net of Unearned Interest $1,968,289 $133,665 6.79% 1,538,744 95,796 6.23
Investment Securities
Taxable Investment Securities 142,406 4,250 2.98 131,842 3,138 2.38
Tax-Exempt Investment Securities 49,252 2,369 4.81 51,979 2,965 5.70
- ----------------------------------------------------------------------------------------------------
Total Investment Securities 191,658 6,619 3.45 183,821 6,103 3.32
Funds Sold 27,725 991 3.53 67,278 833 1.22
- ----------------------------------------------------------------------------------------------------
Total Earning Assets 2,187,672 $141,275 6.46% 1,789,843 102,732 5.74
============== ==============
Cash and Due From Banks 105,787 93,070
Allowance For Loan Losses (17,081) (13,846)
Other Assets 210,355 137,678
- -------------------------------------------------------- ---------
Total Assets $2,486,733 2,006,745
======================================================== =========
LIABILITIES:
Interest Bearing Deposits
NOW Accounts $ 430,601 $ 2,868 0.67% 292,492 733 0.25%
Money Market Accounts 275,830 4,337 1.57 227,808 1,190 0.52
Savings Accounts 152,890 292 0.19 130,282 164 0.13
Time Deposits 550,821 13,637 2.48 459,464 9,228 2.01
- ----------------------------------------------------------------------------------------------------
1,410,142 21,134 1.50 1,110,046 11,315 1.02
Short-Term Borrowings 97,863 2,854 2.92 100,582 1,270 1.26
Subordinated Note Payable 50,717 2,981 5.88 5 155 294 5.71
Other Long-Term Borrowings 70,216 3,094 4.41 59,462 2,562 4.31
- ----------------------------------------------------------------------------------------------------
Total Interest Bearing Liabilities 1,628,938 $ 30,063 1.85% 1,275,245 15,441 1.21
============== ==============
Noninterest Bearing Deposits 544,746 489,155
Other Liabilities 26,337 21,614
- -------------------------------------------------------- ---------
Total Liabilities 2,200,021 1,786,014
SHAREOWNERS' EQUITY: $ 286,712 220,731
- -------------------------------------------------------- ---------
Total Liabilities and Shareowners' Equity $2,486,733 2,006,745
======================================================== =========
Interest Rate Spread $111,212 4.61% 87,291 4.53
======================================================================== ==============
Interest Income and Rate Earned(2) $141,275 6.46 102,732 5.74
Interest Expense and Rate Paid 30,063 1.37 15,441 0.86
- ------------------------------------------------------------------------ --------------
Net Interest Margin $111,212 5.09% 87,291 4.88
- ------------------------------------------------------------------------ --------------
(1) Interest and average rates are calculated on a tax-equivalent basis using the 35% Federal tax rate.
(2) Rate calculated based on average earning assets.
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