x
|
QUARTERLY REPORT PURSUANT TO
SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF
1934
|
o
|
TRANSITION REPORT PURSUANT TO
SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF
1934
|
CAPITAL
CITY BANK GROUP, INC.
|
(Exact
name of registrant as specified in its
charter)
|
Florida
|
59-2273542
|
|
(State
or other jurisdiction of incorporation or organization)
|
(I.R.S.
Employer Identification No.)
|
217
North Monroe Street, Tallahassee, Florida
|
32301
|
|
(Address
of principal executive office)
|
(Zip
Code)
|
(850)
402-7000
|
(Registrant's
telephone number, including area
code)
|
Large
accelerated filer o
|
Accelerated
filer x
|
Non-accelerated
filer o
|
Smaller
reporting company o
|
(Do
not check if smaller reporting company)
|
PART
I – Financial Information
|
Page
|
||
Item
1.
|
Consolidated
Financial Statements (Unaudited)
|
||
Consolidated
Statements of Financial Condition – September 30, 2008 and December 31,
2007
|
4
|
||
Consolidated
Statements of Income – Three and Nine Months Ended September 30, 2008 and
2007
|
5
|
||
Consolidated
Statement of Changes in Shareowners’ Equity – Nine Months Ended September
30, 2008
|
6
|
||
Consolidated
Statements of Cash Flow – Nine Months Ended September 30, 2008 and
2007
|
7
|
||
Notes
to Consolidated Financial Statements
|
8
|
||
Item
2.
|
Management's
Discussion and Analysis of Financial Condition and Results of
Operations
|
17
|
|
Item
3.
|
Quantitative
and Qualitative Disclosure About Market Risk
|
35
|
|
Item
4.
|
Controls
and Procedures
|
35
|
|
PART
II – Other Information
|
|||
Item
1.
|
Legal
Proceedings
|
35
|
|
Item
1A.
|
Risk
Factors
|
35
|
|
Item
2.
|
Unregistered
Sales of Equity Securities and Use of Proceeds
|
35
|
|
Item
3.
|
Defaults
Upon Senior Securities
|
35
|
|
Item
4.
|
Submission
of Matters to a Vote of Security Holders
|
35
|
|
Item
5.
|
Other
Information
|
35
|
|
Item
6.
|
Exhibits
|
36
|
|
Signatures
|
37
|
§
|
the
frequency and magnitude of foreclosure of our
loans;
|
§
|
the
adequacy of collateral underlying collateralized loans and our ability to
resell the collateral if we foreclose on the
loans;
|
§
|
the
effects of our lack of a diversified loan portfolio, including the risks
of geographic and industry
concentrations;
|
§
|
the
accuracy of our financial statement estimates and assumptions, including
the estimate for our loan loss
provision;
|
§
|
the
extent to which our nonperforming loans increase or decrease as a
percentage of our total loan
portfolio;
|
§
|
our
ability to integrate the business and operations of companies and banks
that we have acquired, and those we may acquire in the
future;
|
§
|
our
need and our ability to incur additional debt or equity
financing;
|
§
|
the
strength of the United States economy in general and the strength of the
local economies in which we conduct
operations;
|
§
|
the
effects of harsh weather conditions, including
hurricanes;
|
§
|
inflation,
interest rate, market and monetary
fluctuations;
|
§
|
effect
of changes in the stock market and other capital
markets;
|
§
|
legislative
or regulatory changes;
|
§
|
our
ability to comply with the extensive laws and regulations to which we are
subject;
|
§
|
the
willingness of clients to accept third-party products and services rather
than our products and services and vice
versa;
|
§
|
changes
in the securities and real estate
markets;
|
§
|
increased
competition and its effect on
pricing;
|
§
|
technological
changes;
|
§
|
changes
in monetary and fiscal policies of the U.S.
Government;
|
§
|
the
effects of security breaches and computer viruses that may affect our
computer systems;
|
§
|
changes
in consumer spending and saving
habits;
|
§
|
growth
and profitability of our noninterest
income;
|
§
|
changes
in accounting principles, policies, practices or
guidelines;
|
§
|
the
limited trading activity of our common
stock;
|
§
|
the
concentration of ownership of our common
stock;
|
§
|
anti-takeover
provisions under federal and state law as well as our Articles of
Incorporation and our Bylaws;
|
§
|
other
risks described from time to time in our filings with the Securities and
Exchange Commission; and
|
§
|
our
ability to manage the risks involved in the
foregoing.
|
(Dollars
In Thousands, Except Share Data)
|
September
30, 2008
|
December
31, 2007
|
||||||
ASSETS
|
||||||||
Cash
and Due From Banks
|
$
|
71,062
|
$
|
93,437
|
||||
Funds
Sold and Interest Bearing Deposits
|
27,419
|
166,260
|
||||||
Total
Cash and Cash Equivalents
|
98,481
|
259,697
|
||||||
Investment
Securities, Available-for-Sale
|
193,978
|
190,719
|
||||||
Loans,
Net of Unearned Interest
|
1,927,229
|
1,915,850
|
||||||
Allowance
for Loan Losses
|
(30,544
|
)
|
(18,066
|
)
|
||||
Loans,
Net
|
1,896,685
|
1,897,784
|
||||||
Premises
and Equipment, Net
|
104,806
|
98,612
|
||||||
Goodwill
|
84,811
|
84,811
|
||||||
Other
Intangible Assets
|
9,381
|
13,757
|
||||||
Other
Assets
|
66,308
|
70,947
|
||||||
Total
Assets
|
$
|
2,454,450
|
$
|
2,616,327
|
||||
LIABILITIES
|
||||||||
Deposits:
|
||||||||
Noninterest
Bearing Deposits
|
$
|
382,878
|
$
|
432,659
|
||||
Interest
Bearing Deposits
|
1,579,906
|
1,709,685
|
||||||
Total
Deposits
|
1,962,784
|
2,142,344
|
||||||
Short-Term
Borrowings
|
47,069
|
53,131
|
||||||
Subordinated
Notes Payable
|
62,887
|
62,887
|
||||||
Other
Long-Term Borrowings
|
53,074
|
26,731
|
||||||
Other
Liabilities
|
29,841
|
38,559
|
||||||
Total
Liabilities
|
$
|
2,155,655
|
$
|
2,323,652
|
||||
SHAREOWNERS'
EQUITY
|
||||||||
Preferred
Stock, $.01 par value, 3,000,000 shares authorized;
no
shares outstanding
|
-
|
-
|
||||||
Common
Stock, $.01 par value, 90,000,000 shares authorized; 17,124,986 and
17,182,553 shares issued and outstanding at September 30, 2008 and
December 31, 2007, respectively
|
171
|
172
|
||||||
Additional
Paid-In Capital
|
36,681
|
38,243
|
||||||
Retained
Earnings
|
267,853
|
260,325
|
||||||
Accumulated
Other Comprehensive Loss, Net of Tax
|
(5,910
|
)
|
(6,065
|
)
|
||||
Total
Shareowners' Equity
|
298,795
|
292,675
|
||||||
Total
Liabilities and Shareowners' Equity
|
$
|
2,454,450
|
$
|
2,616,327
|
Three
Months Ended
|
Nine
Months Ended
|
||||||||||||||||
(Dollars
in Thousands, Except Per Share Data)
|
2008
|
2007
|
2008
|
2007
|
|||||||||||||
INTEREST
INCOME
|
|||||||||||||||||
Interest
and Fees on Loans
|
$
|
32,435
|
$
|
38,692
|
$
|
101,112
|
$
|
116,838
|
|||||||||
Investment
Securities:
|
|||||||||||||||||
U.S.
Treasury
|
218
|
143
|
566
|
425
|
|||||||||||||
U.S.
Govt. Agencies
|
588
|
906
|
2,014
|
2,762
|
|||||||||||||
States
and Political Subdivisions
|
803
|
743
|
2,372
|
2,127
|
|||||||||||||
Other
Securities
|
135
|
176
|
495
|
536
|
|||||||||||||
Funds
Sold
|
475
|
639
|
3,078
|
1,849
|
|||||||||||||
Total
Interest Income
|
34,654
|
41,299
|
109,637
|
124,537
|
|||||||||||||
INTEREST
EXPENSE
|
|||||||||||||||||
Deposits
|
5,815
|
11,266
|
23,458
|
33,364
|
|||||||||||||
Short-Term
Borrowings
|
230
|
734
|
1,047
|
2,232
|
|||||||||||||
Subordinated
Notes Payable
|
936
|
936
|
2,798
|
2,794
|
|||||||||||||
Other
Long-Term Borrowings
|
488
|
453
|
1,215
|
1,451
|
|||||||||||||
Total
Interest Expense
|
7,469
|
13,389
|
28,518
|
39,841
|
|||||||||||||
NET
INTEREST INCOME
|
27,185
|
27,910
|
81,119
|
84,696
|
|||||||||||||
Provision
for Loan Losses
|
10,425
|
1,552
|
19,999
|
4,464
|
|||||||||||||
Net
Interest Income After Provision For Loan Losses
|
16,760
|
26,358
|
61,120
|
80,232
|
|||||||||||||
NONINTEREST
INCOME
|
|||||||||||||||||
Service
Charges on Deposit Accounts
|
7,110
|
6,387
|
20,935
|
18,874
|
|||||||||||||
Data
Processing
|
873
|
775
|
2,498
|
2,280
|
|||||||||||||
Asset
Management Fees
|
1,025
|
1,200
|
3,300
|
3,600
|
|||||||||||||
Securities
Transactions
|
27
|
-
|
122
|
7
|
|||||||||||||
Mortgage
Banking Revenues
|
331
|
642
|
1,331
|
2,171
|
|||||||||||||
Bank
Card Fees
|
2,431
|
3,305
|
10,300
|
10,296
|
|||||||||||||
Gain
on Sale of Portion of Merchant Services Portfolio
|
6,250
|
-
|
6,250
|
-
|
|||||||||||||
Other
|
2,165
|
2,122
|
8,993
|
6,249
|
|||||||||||||
Total
Noninterest Income
|
20,212
|
14,431
|
53,729
|
43,477
|
|||||||||||||
NONINTEREST
EXPENSE
|
|||||||||||||||||
Salaries
and Associate Benefits
|
15,417
|
15,096
|
46,339
|
45,807
|
|||||||||||||
Occupancy,
Net
|
2,373
|
2,409
|
7,226
|
6,969
|
|||||||||||||
Furniture
and Equipment
|
2,369
|
2,513
|
7,534
|
7,356
|
|||||||||||||
Intangible
Amortization
|
1,459
|
1,459
|
4,376
|
4,376
|
|||||||||||||
Other
|
8,298
|
8,442
|
24,995
|
25,870
|
|||||||||||||
Total
Noninterest Expense
|
29,916
|
29,919
|
90,470
|
90,378
|
|||||||||||||
INCOME
BEFORE INCOME TAXES
|
7,056
|
10,870
|
24,379
|
33,331
|
|||||||||||||
Income
Taxes
|
2,218
|
3,699
|
7,451
|
11,312
|
|||||||||||||
NET
INCOME
|
$
|
4,838
|
$
|
7,171
|
$
|
16,928
|
$
|
22,019
|
|||||||||
Basic
Net Income Per Share
|
$
|
.29
|
$
|
.41
|
$
|
.99
|
$
|
1.22
|
|||||||||
Diluted
Net Income Per Share
|
$
|
.29
|
$
|
.41
|
$
|
.99
|
$
|
1.22
|
|||||||||
Average
Basic Shares Outstanding
|
17,123,967
|
17,709,119
|
17,146,780
|
18,066,393
|
|||||||||||||
Average
Diluted Shares Outstanding
|
17,127,949
|
17,719,436
|
17,149,392
|
18,076,916
|
(Dollars
In Thousands, Except Share Data)
|
Shares
Outstanding
|
Common
Stock
|
Additional
Paid-In
Capital
|
Retained
Earnings
|
Accumulated
Other Comprehensive Loss, Net of Taxes
|
Total
|
|||||||||||||
Balance,
December 31, 2007
|
17,182,553
|
$
|
172
|
$
|
38,243
|
$
|
260,325
|
$
|
(6,065
|
)
|
$
|
292,675
|
|||||||
Cumulative
Effect of Adoption of EITF 06-4
|
-
|
-
|
-
|
(30
|
)
|
-
|
(30
|
)
|
|||||||||||
Comprehensive
Income:
|
|||||||||||||||||||
Net
Income
|
-
|
-
|
-
|
16,928
|
-
|
16,928
|
|||||||||||||
Net
Change in Unrealized Gain On
Available-for-Sale
Securities (net of tax)
|
-
|
-
|
-
|
-
|
155
|
155
|
|||||||||||||
Total
Comprehensive Income
|
-
|
-
|
-
|
-
|
-
|
17,083
|
|||||||||||||
Cash
Dividends ($.5550 per share)
|
-
|
-
|
-
|
(9,370
|
)
|
-
|
(9,370
|
)
|
|||||||||||
Stock
Performance Plan Compensation
|
-
|
-
|
19
|
-
|
-
|
19
|
|||||||||||||
Issuance
of Common Stock
|
32,474
|
832
|
-
|
-
|
832
|
||||||||||||||
Repurchase
of Common Stock
|
(90,041
|
)
|
(1
|
)
|
(2,413
|
)
|
-
|
-
|
(2,414
|
)
|
|||||||||
Balance,
September 30, 2008
|
17,124,986
|
$
|
171
|
$
|
36,681
|
|
$
|
267,853
|
$
|
(5,910
|
)
|
$
|
298,795
|
(Dollars
in Thousands)
|
2008
|
2007
|
||||||
CASH
FLOWS FROM OPERATING ACTIVITIES
|
||||||||
Net
Income
|
$
|
16,928
|
$
|
22,019
|
||||
Adjustments
to Reconcile Net Income to
Cash
Provided by Operating Activities:
|
||||||||
Provision
for Loan Losses
|
19,999
|
4,464
|
||||||
Depreciation
|
5,173
|
4,673
|
||||||
Net
Securities Amortization
|
616
|
226
|
||||||
Amortization
of Intangible Assets
|
4,376
|
4,376
|
||||||
Gain
on Securities Transactions
|
(122
|
)
|
(7
|
)
|
||||
Gain
On Sale of Portion of Merchant Services Portfolio
|
(6,250
|
)
|
-
|
|||||
Proceeds
From Sale of Portion of Merchant Services Portfolio
|
6,250
|
-
|
||||||
Origination
of Loans Held-for-Sale
|
(87,612
|
)
|
(132,961
|
)
|
||||
Proceeds
From Sales of Loans Held-for-Sale
|
90,927
|
136,973
|
||||||
Net
Gain From Sales of Loans Held-for-Sale
|
(1,331
|
)
|
(2,171
|
)
|
||||
Non-Cash
Compensation
|
19
|
135
|
||||||
Increase
in Deferred Income Taxes
|
1,081
|
549
|
||||||
Net
Decrease (Increase) in Other Assets
|
10,818
|
(5,443
|
)
|
|||||
Net
(Decrease) Increase in Other Liabilities
|
(10,283
|
)
|
16,854
|
|||||
Net
Cash Provided By Operating Activities
|
50,589
|
49,687
|
||||||
CASH
FLOWS FROM INVESTING ACTIVITIES
|
||||||||
Securities
Available-for-Sale:
|
||||||||
Purchases
|
(75,528
|
)
|
(35,405
|
)
|
||||
Sales
|
10,490
|
-
|
||||||
Payments,
Maturities, and Calls
|
61,504
|
43,292
|
||||||
Net
(Increase) Decrease in Loans
|
(26,672
|
)
|
88,212
|
|||||
Purchase
of Premises & Equipment
|
(11,368
|
)
|
(14,394
|
)
|
||||
Proceeds
From Sales of Premises & Equipment
|
-
|
443
|
||||||
Net
Cash (Used In) Provided By Investing Activities
|
(41,574
|
)
|
82,148
|
|||||
CASH
FLOWS FROM FINANCING ACTIVITIES
|
||||||||
Net
Decrease in Deposits
|
(179,561
|
)
|
(144,241
|
)
|
||||
Net
Decrease in Short-Term Borrowings
|
(6,053
|
)
|
(1,580
|
)
|
||||
Increase
(Decrease) in Other Long-Term Borrowings
|
28,526
|
(8,499
|
)
|
|||||
Repayment
of Other Long-Term Borrowings
|
(2,191
|
)
|
(4,485
|
)
|
||||
Dividends
Paid
|
(9,370
|
)
|
(9,608
|
)
|
||||
Repurchase
of Common Stock
|
(2,414
|
)
|
(30,554
|
)
|
||||
Issuance
of Common Stock
|
832
|
545
|
||||||
Net
Cash Used In Financing Activities
|
(170,231
|
)
|
(198,422
|
)
|
||||
NET
CHANGE IN CASH AND CASH EQUIVALENTS
|
(161,216
|
)
|
(66,587
|
)
|
||||
Cash
and Cash Equivalents at Beginning of Period
|
259,697
|
177,564
|
||||||
Cash
and Cash Equivalents at End of Period
|
$
|
98,481
|
$
|
110,977
|
||||
Supplemental
Disclosure:
|
||||||||
Interest
Paid on Deposits
|
$
|
25,135
|
$
|
33,222
|
||||
Interest
Paid on Debt
|
$
|
5,040
|
$
|
6,540
|
||||
Taxes
Paid
|
$
|
14,027
|
$
|
8,643
|
||||
Loans
Transferred to Other Real Estate Owned
|
$
|
5,788
|
$
|
2,828
|
||||
Issuance
of Common Stock as Non-Cash Compensation
|
$
|
1
|
$
|
1,159
|
|
NOTE 1
- SIGNIFICANT
ACCOUNTING POLICIES
|
|
NOTE
2 - INVESTMENT SECURITIES
|
September
30, 2008
|
||||||||||||||||
(Dollars
in Thousands)
|
Amortized
Cost
|
Unrealized
Gains
|
Unrealized
Losses
|
Market
Value
|
||||||||||||
U.S.
Treasury
|
$
|
31,150
|
$
|
125
|
$
|
49
|
$
|
31,226
|
||||||||
U.S.
Government Agencies
|
8,209
|
123
|
3
|
8,329
|
||||||||||||
States
and Political Subdivisions
|
102,843
|
663
|
77
|
103,429
|
||||||||||||
Mortgage-Backed
Securities
|
38,339
|
130
|
395
|
38,074
|
||||||||||||
Other
Securities(1)
|
12,858
|
62
|
-
|
12,920
|
||||||||||||
Total
Investment Securities
|
$
|
193,399
|
$
|
1,103
|
$
|
524
|
$
|
193,978
|
December
31, 2007
|
||||||||||||||||
(Dollars
in Thousands)
|
Amortized
Cost
|
Unrealized
Gains
|
Unrealized
Losses
|
Market
Value
|
||||||||||||
U.S.
Treasury
|
$
|
16,216
|
$
|
97
|
$
|
-
|
$
|
16,313
|
||||||||
U.S.
Government Agencies
|
45,489
|
295
|
34
|
45,750
|
||||||||||||
States
and Political Subdivisions
|
90,014
|
164
|
177
|
90,001
|
||||||||||||
Mortgage-Backed
Securities
|
26,334
|
85
|
132
|
26,287
|
||||||||||||
Other
Securities(1)
|
12,307
|
61
|
-
|
12,368
|
||||||||||||
Total
Investment Securities
|
$
|
190,360
|
$
|
702
|
$
|
343
|
$
|
190,719
|
(1)
|
Includes Federal Home Loan
Bank and Federal Reserve Bank stock recorded at cost of $7.0 million and
$4.8 million, respectively, at September 30, 2008, and $6.5 million and
$4.8 million, respectively, at December 31,
2007.
|
|
NOTE
3 - LOANS
|
(Dollars
in Thousands)
|
September
30, 2008
|
December
31, 2007
|
||||||
Commercial,
Financial and Agricultural
|
$
|
189,676
|
$
|
208,864
|
||||
Real
Estate-Construction
|
148,160
|
142,248
|
||||||
Real
Estate-Commercial
|
639,443
|
634,920
|
||||||
Real
Estate-Residential
|
479,529
|
485,608
|
||||||
Real
Estate-Home Equity
|
212,118
|
192,428
|
||||||
Real
Estate-Loans Held-for-Sale
|
1,811
|
2,764
|
||||||
Consumer
|
256,492
|
249,018
|
||||||
Loans,
Net of Unearned Interest
|
$
|
1,927,229
|
$
|
1,915,850
|
(Dollars
in Thousands)
|
2008
|
2007
|
||||||
Balance,
Beginning of Period
|
$
|
18,066
|
$
|
17,217
|
||||
Provision
for Loan Losses
|
19,999
|
4,464
|
||||||
Recoveries
on Loans Previously Charged-Off
|
1,799
|
1,465
|
||||||
Loans
Charged-Off
|
(9,320
|
)
|
(5,145
|
)
|
||||
Balance,
End of Period
|
$
|
30,544
|
$
|
18,001
|
September
30, 2008
|
December
31, 2007
|
|||||||||||||||
(Dollars
in Thousands)
|
Balance
|
Valuation
Allowance
|
Balance
|
Valuation
Allowance
|
||||||||||||
Impaired
Loans:
|
||||||||||||||||
With
Related Valuation Allowance
|
$
|
37,120
|
$
|
11,364
|
$
|
21,615
|
$
|
4,702
|
||||||||
Without
Related Valuation Allowance
|
38,629
|
-
|
15,019
|
-
|
|
NOTE
5 - INTANGIBLE ASSETS
|
September
30, 2008
|
December
31, 2007
|
|||||||||||||||
(Dollars
in Thousands)
|
Gross
Amount
|
Accumulated
Amortization
|
Gross
Amount
|
Accumulated
Amortization
|
||||||||||||
Core
Deposit Intangibles
|
$
|
47,176
|
$
|
38,831
|
$
|
47,176
|
$
|
34,598
|
||||||||
Goodwill
|
84,811
|
-
|
84,811
|
-
|
||||||||||||
Customer
Relationship Intangible
|
1,867
|
831
|
1,867
|
688
|
||||||||||||
Total
Intangible Assets
|
$
|
133,854
|
$
|
39,662
|
$
|
133,854
|
$
|
35,286
|
(Dollars
in Thousands)
|
September
30, 2008
|
December
31, 2007
|
||||||
NOW
Accounts
|
$
|
698,509
|
$
|
744,093
|
||||
Money
Market Accounts
|
368,453
|
386,619
|
||||||
Savings
Deposits
|
116,858
|
111,600
|
||||||
Other
Time Deposits
|
396,086
|
467,373
|
||||||
Total
Interest Bearing Deposits
|
$
|
1,579,906
|
$
|
1,709,685
|
|
NOTE
7 - STOCK-BASED COMPENSATION
|
Options
|
Shares
|
Weighted-Average
Exercise Price
|
Weighted-Average
Remaining Term
|
Aggregate
Intrinsic Value
|
||||||||||||
Outstanding
at January 1, 2008
|
60,384 | $ | 32.79 | 6.9 | $ | - | ||||||||||
Granted
|
- | - | - | - | ||||||||||||
Exercised
|
- | - | - | - | ||||||||||||
Forfeited
or expired
|
- | - | - | - | ||||||||||||
Outstanding
at September 30, 2008
|
60,384 | $ | 32.79 | 6.1 | $ | - | ||||||||||
Exercisable
at September 30, 2008
|
60,384 | $ | 32.79 | 6.1 | $ | - |
Nine
Months Ended September 30,
|
||||||||
2008
|
2007
|
|||||||
Dividend
yield
|
3.2
|
%
|
2.2
|
%
|
||||
Expected
volatility
|
35.0
|
%
|
27.0
|
%
|
||||
Risk-free
interest rate
|
2.0
|
%
|
4.7
|
%
|
||||
Expected
life (in years)
|
0.5
|
0.5
|
Three
Months Ended September 30,
|
Nine
Months Ended September 30,
|
|||||||||||||||
(Dollars
in Thousands)
|
2008
|
2007
|
2008
|
2007
|
||||||||||||
Discount
Rate
|
6.25
|
%
|
6.00
|
%
|
6.25
|
%
|
6.00
|
%
|
||||||||
Long-Term
Rate of Return on Assets
|
8.00
|
%
|
8.00
|
%
|
8.00
|
%
|
8.00
|
%
|
||||||||
Service
Cost
|
$
|
1,279
|
$
|
1,350
|
$
|
3,837
|
$
|
4,050
|
||||||||
Interest
Cost
|
1,063
|
1,025
|
3,189
|
3,075
|
||||||||||||
Expected
Return on Plan Assets
|
(1,253
|
)
|
(1,300
|
)
|
(3,759
|
)
|
(3,900
|
)
|
||||||||
Prior
Service Cost Amortization
|
75
|
100
|
225
|
300
|
||||||||||||
Net
Loss Amortization
|
280
|
250
|
840
|
750
|
||||||||||||
Net
Periodic Benefit Cost
|
$
|
1,444
|
$
|
1,425
|
$
|
4,332
|
$
|
4,275
|
Three
Months Ended September 30,
|
Nine
Months Ended September 30,
|
|||||||||||||||
(Dollars
in Thousands)
|
2008
|
2007
|
2008
|
2007
|
||||||||||||
Discount
Rate
|
6.25
|
%
|
6.00
|
%
|
6.25
|
%
|
6.00
|
%
|
||||||||
Service
Cost
|
$
|
22
|
$
|
25
|
$
|
66
|
$
|
75
|
||||||||
Interest
Cost
|
56
|
63
|
168
|
189
|
||||||||||||
Prior
Service Cost Amortization
|
2
|
3
|
6
|
9
|
||||||||||||
Net
Loss Amortization
|
1
|
18
|
3
|
54
|
||||||||||||
Net
Periodic Benefit Cost
|
$
|
81
|
$
|
109
|
$
|
243
|
$
|
327
|
|
NOTE
9 - COMMITMENTS AND CONTINGENCIES
|
(Dollars
in Millions)
|
Amount
|
|||
Commitments
to Extend Credit(1)
|
$
|
380
|
||
Standby
Letters of Credit
|
$
|
17
|
(1)
|
Commitments include unfunded
loans, revolving lines of credit, and other unused
commitments.
|
(Dollars
in Thousands)
|
Level
1 Inputs
|
Level
2 Inputs
|
Level
3 Inputs
|
Total
Fair
Value
|
||||||||||||
Securities
Available for Sale
|
$ | 39,555 | $ | 141,502 | $ | 1,063 | $ | 182,120 |
2008
|
2007
|
2006
|
|||||||||||||||||||||||||||||||||||
(Dollars
in Thousands, Except Per Share Data)
|
Third
|
Second
|
First
|
Fourth
|
Third
|
Second
|
First
|
Fourth
|
|||||||||||||||||||||||||||||
Summary
of Operations:
|
|||||||||||||||||||||||||||||||||||||
Interest
Income
|
$
|
34,654
|
$
|
36,260
|
$
|
38,723
|
$
|
40,786
|
$
|
41,299
|
$
|
41,724
|
$
|
41,514
|
$
|
42,600
|
|||||||||||||||||||||
Interest
Expense
|
7,469
|
8,785
|
12,264
|
13,241
|
13,389
|
13,263
|
13,189
|
13,003
|
|||||||||||||||||||||||||||||
Net
Interest Income
|
27,185
|
27,475
|
26,459
|
27,545
|
27,910
|
28,461
|
28,325
|
29,597
|
|||||||||||||||||||||||||||||
Provision
for Loan Losses
|
10,425
|
5,432
|
4,142
|
1,699
|
1,552
|
1,675
|
1,237
|
460
|
|||||||||||||||||||||||||||||
Net
Interest Income After
Provision
for Loan Losses
|
16,760
|
22,043
|
22,317
|
25,846
|
26,358
|
26,786
|
27,088
|
29,137
|
|||||||||||||||||||||||||||||
Noninterest
Income
|
20,212
|
15,718
|
17,799
|
15,823
|
14,431
|
15,084
|
13,962
|
14,385
|
|||||||||||||||||||||||||||||
Noninterest
Expense
|
29,916
|
30,756
|
29,798
|
31,614
|
29,919
|
29,897
|
30,562
|
29,984
|
|||||||||||||||||||||||||||||
Income
Before Provision for Income Taxes
|
7,056
|
7,005
|
10,318
|
10,055
|
10,870
|
11,973
|
10,488
|
13,538
|
|||||||||||||||||||||||||||||
Provision
for Income Taxes
|
2,218
|
2,195
|
3,038
|
2,391
|
3,699
|
4,082
|
3,531
|
4,688
|
|||||||||||||||||||||||||||||
Net
Income
|
$
|
4,838
|
$
|
4,810
|
$
|
7,280
|
$
|
7,664
|
$
|
7,171
|
$
|
7,891
|
$
|
6,957
|
$
|
8,850
|
|||||||||||||||||||||
Net
Interest Income (FTE)
|
$
|
27,802
|
$
|
28,081
|
$
|
27,077
|
$
|
28,196
|
$
|
28,517
|
$
|
29,050
|
$
|
28,898
|
$
|
30,152
|
|||||||||||||||||||||
Per
Common Share:
|
|||||||||||||||||||||||||||||||||||||
Net
Income Basic
|
$
|
0.29
|
$
|
0.28
|
$
|
0.42
|
$
|
0.44
|
$
|
0.41
|
$
|
0.43
|
$
|
0.38
|
$
|
0.48
|
|||||||||||||||||||||
Net
Income Diluted
|
0.29
|
0.28
|
0.42
|
0.44
|
0.41
|
0.43
|
0.38
|
0.48
|
|||||||||||||||||||||||||||||
Dividends
Declared
|
.185
|
.185
|
.185
|
.185
|
.175
|
.175
|
.175
|
.175
|
|||||||||||||||||||||||||||||
Diluted
Book Value
|
17.45
|
17.33
|
17.33
|
17.03
|
16.95
|
16.87
|
16.97
|
17.01
|
|||||||||||||||||||||||||||||
Market
Price:
|
|||||||||||||||||||||||||||||||||||||
High
|
34.50
|
30.19
|
29.99
|
34.00
|
36.40
|
33.69
|
35.91
|
35.98
|
|||||||||||||||||||||||||||||
Low
|
19.20
|
21.76
|
24.76
|
24.60
|
27.69
|
29.12
|
29.79
|
30.14
|
|||||||||||||||||||||||||||||
Close
|
31.35
|
21.76
|
29.00
|
28.22
|
31.20
|
31.34
|
33.30
|
35.30
|
|||||||||||||||||||||||||||||
Selected
Average
|
|||||||||||||||||||||||||||||||||||||
Balances:
|
|||||||||||||||||||||||||||||||||||||
Loans
|
$
|
1,915,008
|
$
|
1,908,802
|
$
|
1,909,574
|
$
|
1,908,069
|
$
|
1,907,235
|
$
|
1,944,969
|
$
|
1,980,224
|
$
|
2,003,719
|
|||||||||||||||||||||
Earning
Assets
|
2,207,670
|
2,303,971
|
2,301,463
|
2,191,230
|
2,144,737
|
2,187,236
|
2,211,560
|
2,238,066
|
|||||||||||||||||||||||||||||
Assets
|
2,528,638
|
2,634,771
|
2,646,474
|
2,519,682
|
2,467,703
|
2,511,252
|
2,530,790
|
2,557,357
|
|||||||||||||||||||||||||||||
Deposits
|
2,030,683
|
2,140,546
|
2,148,874
|
2,016,736
|
1,954,160
|
1,987,418
|
2,003,726
|
2,028,453
|
|||||||||||||||||||||||||||||
Shareowners’
Equity
|
303,595
|
300,890
|
296,804
|
299,342
|
301,536
|
309,352
|
316,484
|
323,903
|
|||||||||||||||||||||||||||||
Common
Equivalent Shares:
|
|||||||||||||||||||||||||||||||||||||
Basic
|
17,124
|
17,146
|
17,170
|
17,444
|
17,709
|
18,089
|
18,409
|
18,525
|
|||||||||||||||||||||||||||||
Diluted
|
17,128
|
17,147
|
17,178
|
17,445
|
17,719
|
18,089
|
18,420
|
18,569
|
|||||||||||||||||||||||||||||
Ratios:
|
|||||||||||||||||||||||||||||||||||||
ROA
|
.76
|
%
|
(1)
|
.73
|
%
|
1.11
|
%
|
1.21
|
%
|
1.15
|
%
|
1.26
|
%
|
1.11
|
%
|
1.37
|
%
|
||||||||||||||||||||
ROE
|
6.34
|
%
|
(1)
|
6.43
|
%
|
9.87
|
%
|
10.16
|
%
|
9.44
|
%
|
10.23
|
%
|
8.91
|
%
|
10.84
|
%
|
||||||||||||||||||||
Net
Interest Margin (FTE)
|
5.01
|
%
|
4.90
|
%
|
4.73
|
%
|
5.10
|
%
|
5.27
|
%
|
5.33
|
%
|
5.29
|
%
|
5.35
|
%
|
|||||||||||||||||||||
Efficiency
Ratio
|
59.27
|
%
|