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
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CAPITAL CITY BANK GROUP, INC.
|
(Exact name of registrant as specified in its charter)
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Florida
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59-2273542
|
|
(State or other jurisdiction of incorporation or organization)
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(I.R.S. Employer Identification No.)
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217 North Monroe Street, Tallahassee, Florida
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32301
|
|
(Address of principal executive office)
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(Zip Code)
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(850) 402-7000
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(Registrant's telephone number, including area code)
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Large accelerated filer o
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Accelerated filer x
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Non-accelerated filer o
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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, 2011 and December 31, 2010
|
4
|
|||
Consolidated Statements of Operations – Three and Nine Months Ended September 30, 2011 and 2010
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5
|
|||
Consolidated Statement of Changes in Shareowners’ Equity – Nine Months Ended September 30, 2011
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6
|
|||
Consolidated Statements of Cash Flow – Nine Months Ended September 30, 2011 and 2010
|
7
|
|||
Notes to Consolidated Financial Statements
|
8
|
|||
Item 2.
|
Management's Discussion and Analysis of Financial Condition and Results of Operations
|
22
|
||
Item 3.
|
Quantitative and Qualitative Disclosure About Market Risk
|
39
|
||
Item 4.
|
Controls and Procedures
|
39
|
||
PART II – Other Information
|
||||
Item 1.
|
Legal Proceedings
|
39
|
||
Item 1A.
|
Risk Factors
|
39
|
||
Item 2.
|
Unregistered Sales of Equity Securities and Use of Proceeds
|
47
|
||
Item 3.
|
Defaults Upon Senior Securities
|
47
|
||
Item 4.
|
[Removed and Reserved]
|
47
|
||
Item 5.
|
Other Information
|
47
|
||
Item 6.
|
Exhibits
|
48
|
||
Signatures
|
49
|
|||
§
|
legislative or regulatory changes, including the Dodd-Frank Wall Street Reform and Consumer Protection Act;
|
§
|
the strength of the United States economy in general and the strength of the local economies in which we conduct operations;
|
§
|
the accuracy of our financial statement estimates and assumptions, including the estimate for our loan loss provision and the valuation allowance on deferred tax assets;
|
§
|
the frequency and magnitude of foreclosure of our loans;
|
§
|
continued depression of the market value of the Company that could result in an impairment of goodwill;
|
§
|
restrictions on our operations, including the inability to pay dividends without our regulators’ consent;
|
§
|
the effects of the health and soundness of other financial institutions, including the FDIC’s need to increase Deposit Insurance Fund assessments;
|
§
|
our ability to declare and pay dividends;
|
§
|
changes in the securities and real estate markets;
|
§
|
changes in monetary and fiscal policies of the U.S. Government;
|
§
|
increased competition and its effect on pricing, including the effect of the repeal of Regulation Q on our net interest income;
|
§
|
inflation, interest rate, market and monetary fluctuations;
|
§
|
the effects of our lack of a diversified loan portfolio, including the risks of geographic and industry concentrations;
|
§
|
our need and our ability to incur additional debt or equity financing;
|
§
|
the effects of harsh weather conditions, including hurricanes, and man-made disasters;
|
§
|
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;
|
§
|
technological changes;
|
§
|
negative publicity and the impact on our reputation;
|
§
|
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;
|
§
|
our ability to integrate the business and operations of companies and banks that we have acquired, and those we may acquire in the future;
|
§
|
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.
|
Unaudited
|
||||||||
(Dollars In Thousands, Except Share Data)
|
September 30, 2011
|
December 31, 2010
|
||||||
ASSETS
|
||||||||
Cash and Due From Banks
|
$
|
53,027
|
$
|
35,410
|
||||
Federal Funds Sold and Interest Bearing Deposits
|
193,387
|
200,783
|
||||||
Total Cash and Cash Equivalents
|
246,414
|
236,193
|
||||||
Investment Securities, Available-for-Sale
|
306,038
|
309,731
|
||||||
Loans, Net of Unearned Interest
|
1,657,699
|
1,758,671
|
||||||
Allowance for Loan Losses
|
(29,658
|
)
|
(35,436
|
)
|
||||
Loans, Net
|
1,628,041
|
1,723,235
|
||||||
Premises and Equipment, Net
|
111,471
|
115,356
|
||||||
Goodwill
|
84,811
|
84,811
|
||||||
Other Intangible Assets
|
780
|
1,348
|
||||||
Other Real Estate Owned
|
61,196
|
57,937
|
||||||
Other Assets
|
85,221
|
93,442
|
||||||
Total Assets
|
$
|
2,523,972
|
$
|
2,622,053
|
||||
LIABILITIES
|
||||||||
Deposits:
|
||||||||
Noninterest Bearing Deposits
|
$
|
584,628
|
$
|
546,257
|
||||
Interest Bearing Deposits
|
1,459,170
|
1,557,719
|
||||||
Total Deposits
|
2,043,798
|
2,103,976
|
||||||
Short-Term Borrowings
|
47,508
|
92,928
|
||||||
Subordinated Notes Payable
|
62,887
|
62,887
|
||||||
Other Long-Term Borrowings
|
45,389
|
50,101
|
||||||
Other Liabilities
|
63,465
|
53,142
|
||||||
Total Liabilities
|
2,263,047
|
2,363,034
|
||||||
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; 17,156,571 and 17,100,081 shares issued and outstanding at September 30, 2011 and December 31, 2010, respectively
|
172
|
171
|
||||||
Additional Paid-In Capital
|
38,074
|
36,920
|
||||||
Retained Earnings
|
237,969
|
237,679
|
||||||
Accumulated Other Comprehensive Loss, Net of Tax
|
(15,290
|
)
|
(15,751
|
)
|
||||
Total Shareowners' Equity
|
260,925
|
259,019
|
||||||
Total Liabilities and Shareowners' Equity
|
$
|
2,523,972
|
$
|
2,622,053
|
Three Months Ended
|
Nine Months Ended
|
||||||||||||||||
(Dollars in Thousands, Except Per Share Data)
|
2011
|
2010
|
2011
|
2010
|
|||||||||||||
INTEREST INCOME
|
|||||||||||||||||
Interest and Fees on Loans
|
$
|
23,777
|
$
|
26,418
|
$
|
72,029
|
$
|
80,054
|
|||||||||
Investment Securities:
|
|||||||||||||||||
U.S. Treasuries
|
393
|
315
|
1,199
|
748
|
|||||||||||||
U.S. Government Agencies
|
352
|
274
|
1,044
|
893
|
|||||||||||||
States and Political Subdivisions
|
150
|
339
|
562
|
1,235
|
|||||||||||||
Other Securities
|
83
|
86
|
261
|
242
|
|||||||||||||
Federal Funds Sold
|
136
|
144
|
452
|
492
|
|||||||||||||
Total Interest Income
|
24,891
|
27,576
|
75,547
|
83,664
|
|||||||||||||
INTEREST EXPENSE
|
|||||||||||||||||
Deposits
|
907
|
1,820
|
3,248
|
7,121
|
|||||||||||||
Short-Term Borrowings
|
78
|
31
|
299
|
60
|
|||||||||||||
Subordinated Notes Payable
|
339
|
376
|
1,022
|
1,666
|
|||||||||||||
Other Long-Term Borrowings
|
467
|
565
|
1,453
|
1,642
|
|||||||||||||
Total Interest Expense
|
1,791
|
2,792
|
6,022
|
10,489
|
|||||||||||||
NET INTEREST INCOME
|
23,100
|
24,784
|
69,525
|
73,175
|
|||||||||||||
Provision for Loan Losses
|
3,718
|
5,668
|
11,396
|
20,041
|
|||||||||||||
Net Interest Income After Provision For Loan Losses
|
19,382
|
19,116
|
58,129
|
53,134
|
|||||||||||||
NONINTEREST INCOME
|
|||||||||||||||||
Service Charges on Deposit Accounts
|
6,629
|
6,399
|
18,921
|
20,066
|
|||||||||||||
Data Processing
|
749
|
911
|
2,487
|
2,730
|
|||||||||||||
Asset Management Fees
|
1,080
|
1,040
|
3,240
|
3,140
|
|||||||||||||
Retail Brokerage Fees
|
807
|
671
|
2,475
|
2,082
|
|||||||||||||
Securities Transactions
|
-
|
3
|
-
|
8
|
|||||||||||||
Mortgage Banking Fees
|
645
|
772
|
1,830
|
1,921
|
|||||||||||||
Bank Card Fees
|
2,590
|
2,327
|
7,644
|
6,864
|
|||||||||||||
Other
|
1,693
|
1,326
|
8,378
|
5,279
|
|||||||||||||
Total Noninterest Income
|
14,193
|
13,449
|
44,975
|
42,090
|
|||||||||||||
NONINTEREST EXPENSE
|
|||||||||||||||||
Salaries and Associate Benefits
|
15,805
|
15,003
|
48,382
|
47,366
|
|||||||||||||
Occupancy, Net
|
2,495
|
2,611
|
7,338
|
7,604
|
|||||||||||||
Furniture and Equipment
|
2,118
|
2,288
|
6,461
|
6,661
|
|||||||||||||
Intangible Amortization
|
108
|
709
|
568
|
2,129
|
|||||||||||||
Other Real Estate
|
2,542
|
3,306
|
9,252
|
10,213
|
|||||||||||||
Other
|
7,579
|
8,446
|
23,144
|
26,403
|
|||||||||||||
Total Noninterest Expense
|
30,647
|
32,363
|
95,145
|
100,376
|
|||||||||||||
INCOME (LOSS) BEFORE INCOME TAXES
|
2,928
|
202
|
7,959
|
(5,152
|
)
|
||||||||||||
Income Tax Expense (Benefit)
|
951
|
(199
|
)
|
2,527
|
(2,821
|
)
|
|||||||||||
NET INCOME (LOSS)
|
$
|
1,977
|
$
|
401
|
$
|
5,432
|
$
|
(2,331
|
)
|
||||||||
Basic Net Income (Loss) Per Share
|
$
|
0.12
|
$
|
0.02
|
$
|
0.32
|
$
|
(0.14
|
)
|
||||||||
Diluted Net Income (Loss) Per Share
|
$
|
0.12
|
$
|
0.02
|
$
|
0.32
|
$
|
(0.14
|
)
|
||||||||
Average Basic Shares Outstanding
|
17,152,148
|
17,087,196
|
17,133,796
|
17,069,255
|
|||||||||||||
Average Diluted Shares Outstanding
|
17,167,173
|
17,087,927
|
17,142,773
|
17,070,087
|
(Dollars In Thousands, Except Share Data)
|
Shares Outstanding
|
Common Stock
|
Additional
Paid-In Capital
|
Retained Earnings
|
Accumulated Other Comprehensive Income, Net of Taxes
|
Total
|
|||||||||||||
Balance, December 31, 2010
|
17,100,081
|
$
|
171
|
$
|
36,920
|
$
|
237,679
|
$
|
(15,751
|
)
|
$
|
259,019
|
|||||||
Comprehensive Income:
|
|||||||||||||||||||
Net Income
|
-
|
-
|
-
|
5,432
|
-
|
5,432
|
|||||||||||||
Net Change in Unrealized Gain On
Available-for-Sale Securities (net of tax)
|
-
|
-
|
-
|
-
|
461
|
461
|
|||||||||||||
Total Comprehensive Income
|
-
|
-
|
-
|
5,893
|
|||||||||||||||
Cash Dividends ($0.30 per share)
|
-
|
-
|
-
|
(5,142
|
)
|
-
|
(5,142
|
)
|
|||||||||||
Stock Performance Plan Compensation
|
-
|
-
|
430
|
-
|
-
|
430
|
|||||||||||||
Issuance of Common Stock
|
56,490
|
1
|
724
|
-
|
-
|
725
|
|||||||||||||
Balance, September 30, 2011
|
17,156,571
|
$
|
172
|
$
|
38,074
|
$
|
237,969
|
$
|
(15,290
|
)
|
$
|
260,925
|
(Dollars in Thousands)
|
2011
|
2010
|
||||||
CASH FLOWS FROM OPERATING ACTIVITIES
|
||||||||
Net Income (Loss)
|
$
|
5,432
|
$
|
(2,331
|
)
|
|||
Adjustments to Reconcile Net Income to
Cash Provided by Operating Activities:
|
||||||||
Provision for Loan Losses
|
11,396
|
20,041
|
||||||
Depreciation
|
5,127
|
5,306
|
||||||
Net Securities Amortization
|
2,856
|
2,421
|
||||||
Amortization of Intangible Assets
|
568
|
2,129
|
||||||
Gain (Loss) on Securities Transactions
|
-
|
(8
|
)
|
|||||
Loss on Impaired Security
|
-
|
61
|
||||||
Origination of Loans Held-for-Sale
|
(84,773
|
)
|
(99,508
|
)
|
||||
Proceeds From Sales of Loans Held-for-Sale
|
84,694
|
94,857
|
||||||
Net Gain From Sales of Loans Held-for-Sale
|
(1,830
|
)
|
(1,921
|
)
|
||||
Non-Cash Compensation
|
430
|
-
|
||||||
Decrease in Deferred Income Taxes
|
(586
|
)
|
(661
|
)
|
||||
Net Decrease in Other Assets
|
36,547
|
17,063
|
||||||
Net Increase in Other Liabilities
|
10,323
|
12,111
|
||||||
Net Cash Provided By Operating Activities
|
70,184
|
49,560
|
||||||
CASH FLOWS FROM INVESTING ACTIVITIES
|
||||||||
Securities Available-for-Sale:
|
||||||||
Purchases
|
(60,672
|
)
|
(121,609
|
)
|
||||
Sales
|
-
|
505
|
||||||
Payments, Maturities, and Calls
|
62,257
|
65,185
|
||||||
Net Decrease in Loans
|
54,420
|
63,048
|
||||||
Purchase of Premises & Equipment
|
(1,242
|
)
|
(5,556
|
)
|
||||
Net Cash Provided By Investing Activities
|
54,763
|
1,573
|
||||||
CASH FLOWS FROM FINANCING ACTIVITIES
|
||||||||
Decrease in Deposits
|
(60,178
|
)
|
(136,791
|
)
|
||||
Net Decrease (Increase) in Short-Term Borrowings
|
(45,419
|
)
|
2,298
|
|||||
Increase (Decrease) in Other Long-Term Borrowings
|
789
|
(1,969
|
)
|
|||||
Repayment of Other Long-Term Borrowings
|
(5,501
|
)
|
(956
|
)
|
||||
Dividends Paid
|
(5,142
|
)
|
(6,658
|
)
|
||||
Issuance of Common Stock
|
725
|
766
|
||||||
Net Cash Used by Financing Activities
|
(114,726
|
)
|
(143,310
|
)
|
||||
NET CHANGE IN CASH AND CASH EQUIVALENTS
|
10,221
|
(92,177
|
)
|
|||||
Cash and Cash Equivalents at Beginning of Period
|
236,193
|
334,293
|
||||||
Cash and Cash Equivalents at End of Period
|
$
|
246,414
|
$
|
242,116
|
||||
Supplemental Disclosure:
|
||||||||
Interest Paid on Deposits
|
$
|
3,548
|
$
|
7,884
|
||||
Interest Paid on Debt
|
2,892
|
3,383
|
||||||
Taxes Paid
|
6,402
|
485
|
||||||
Loans Transferred to Other Real Estate Owned
|
31,287
|
31,907
|
||||||
Issuance of Common Stock as Non-Cash Compensation
|
725
|
765
|
||||||
Transfer of Current Portion of Long-Term Borrowings
|
$
|
-
|
$
|
10,000
|
NOTE 1 - SIGNIFICANT ACCOUNTING POLICIES
|
NOTE 2 - INVESTMENT SECURITIES
|
September 30, 2011
|
|||||||||||||||
(Dollars in Thousands)
|
Amortized
Cost
|
Unrealized
Gains
|
Unrealized
Losses
|
Market
Value
|
|||||||||||
U.S. Treasury
|
$
|
168,294
|
$
|
1,677
|
$
|
-
|
$
|
169,971
|
|||||||
U.S. Government Agencies and Corporations
|
9,989
|
36
|
18
|
10,007
|
|||||||||||
States and Political Subdivisions
|
58,457
|
217
|
54
|
58,620
|
|||||||||||
Mortgage-Backed Securities
|
55,186
|
730
|
175
|
55,741
|
|||||||||||
Other Securities(1)
|
12,299
|
-
|
600
|
11,699
|
|||||||||||
Total Investment Securities
|
$
|
304,225
|
$
|
2,660
|
$
|
847
|
$
|
306,038
|
December 31, 2010
|
|||||||||||||||
(Dollars in Thousands)
|
Amortized
Cost
|
Unrealized
Gains
|
Unrealized
Losses
|
Market
Value
|
|||||||||||
U.S. Treasury
|
$
|
160,913
|
$
|
1,371
|
$
|
134
|
$
|
162,150
|
|||||||
U.S. Government Agencies and Corporations
|
-
|
-
|
-
|
-
|
|||||||||||
States and Political Subdivisions
|
78,990
|
319
|
9
|
79,300
|
|||||||||||
Mortgage-Backed Securities
|
56,099
|
678
|
560
|
56,217
|
|||||||||||
Other Securities(1)
|
12,664
|
-
|
600
|
12,064
|
|||||||||||
Total Investment Securities
|
$
|
308,666
|
$
|
2,368
|
$
|
1,303
|
$
|
309,731
|
(1)
|
Includes Federal Home Loan Bank and Federal Reserve Bank stock recorded at cost of $6.8 million and $4.8 million, respectively, at September 30, 2011 and $7.2 million and $4.8 million, respectively, at December 31, 2010.
|
(Dollars in Thousands)
|
Amortized Cost
|
Market Value
|
||||||
Due in one year or less
|
$
|
120,431
|
$
|
120,775
|
||||
Due after one through five years
|
168,026
|
170,033
|
||||||
Due after five through 10 years
|
1,906
|
1,992
|
||||||
Due after 10 years
|
1,563
|
1,539
|
||||||
No Maturity
|
12,299
|
11,699
|
||||||
Total Investment Securities
|
$
|
304,225
|
$
|
306,038
|
September 30, 2011
|
||||||||||||||||||||||||
Less Than
12 Months
|
Greater Than
12 Months
|
Total
|
||||||||||||||||||||||
(Dollars in Thousands)
|
Market
Value
|
Unrealized
Losses
|
Market
Value
|
Unrealized
Losses
|
Market
Value
|
Unrealized
Losses
|
||||||||||||||||||
U.S. Treasury
|
$
|
3,696
|
$
|
18
|
$
|
-
|
$
|
-
|
$
|
3,696
|
$
|
18
|
||||||||||||
U.S. Government Agencies and Corporations
|
-
|
-
|
-
|
-
|
-
|
-
|
||||||||||||||||||
States and Political Subdivisions
|
7,510
|
54
|
-
|
-
|
7,510
|
54
|
||||||||||||||||||
Mortgage-Backed Securities
|
15,757
|
175
|
-
|
-
|
15,757
|
175
|
||||||||||||||||||
Other Securities
|
-
|
-
|
-
|
600
|
-
|
600
|
||||||||||||||||||
Total Investment Securities
|
$
|
26,963
|
$
|
247
|
$
|
-
|
$
|
600
|
$
|
26,963
|
$
|
847
|
(Dollars in Thousands)
|
September 30, 2011
|
December 31, 2010
|
||||||
Commercial, Financial and Agricultural
|
$
|
142,511
|
$
|
157,394
|
||||
Real Estate-Construction
|
31,991
|
43,239
|
||||||
Real Estate-Commercial
|
644,128
|
671,702
|
||||||
Real Estate-Residential(1)
|
393,624
|
424,229
|
||||||
Real Estate-Home Equity
|
245,438
|
251,565
|
||||||
Real Estate-Loans Held-for-Sale
|
8,782
|
6,312
|
||||||
Consumer
|
191,225
|
204,230
|
||||||
Loans, Net of Unearned Interest
|
$
|
1,657,699
|
$
|
1,758,671
|
(1)
|
Includes loans in process with outstanding balances of $14.5 million and $10.2 million for September 30, 2011 and December 31, 2010, respectively.
|
September 30, 2011
(Dollars in Thousands)
|
30-59
DPD
|
60-89
DPD
|
90 +
DPD
|
Total
Past Due
|
Total
Current
|
Total
Loans
|
||||||||||||||||||
Commercial, Financial and Agricultural
|
$ | 320 | 140 | - | 460 | 141,010 | $ | 142,511 | ||||||||||||||||
Real Estate - Construction
|
148 | - | - | 148 | 30,704 | 31,991 | ||||||||||||||||||
Real Estate - Commercial Mortgage
|
1,712 | 3,847 | - | 5,559 | 612,337 | 644,128 | ||||||||||||||||||
Real Estate - Residential
|
3,771 | 2,957 | 26 | 6,754 | 374,377 | 388,686 | ||||||||||||||||||
Real Estate - Home Equity
|
1,460 | 446 | - | 1,906 | 240,758 | 245,438 | ||||||||||||||||||
Consumer
|
1,986 | 265 | - | 2,251 | 188,039 | 204,945 | ||||||||||||||||||
Total Past Due Loans
|
$ | 9,397 | 7,655 | 26 | 17,078 | 1,587,225 | $ | 1,657,699 |
December 31, 2010
(Dollars in Thousands)
|
30-59
DPD
|
60-89
DPD
|
90 +
DPD
|
Total
Past Due
|
Total
Current
|
Total
Loans
|
|||||||||||||||
Commercial, Financial and Agricultural
|
|
$ |
645
|
193
|
-
|
838
|
155,497
|
$
|
157,394
|
||||||||||||
Real Estate - Construction
|
314
|
129
|
-
|
443
|
40,890
|
43,239
|
|||||||||||||||
Real Estate - Commercial Mortgage
|
5,577
|
840
|
-
|
6,417
|
638,411
|
671,702
|
|||||||||||||||
Real Estate - Residential
|
7,171
|
3,958
|
120
|
11,249
|
389,103
|
430,541
|
|||||||||||||||
Real Estate - Home Equity
|
1,445
|
698
|
39
|
2,182
|
244,579
|
251,565
|
|||||||||||||||
Consumer
|
2,867
|
356
|
-
|
3,223
|
200,139
|
204,230
|
|||||||||||||||
Total Past Due Loans
|
|
$ |
18,019
|
6,174
|
159
|
24,352
|
1,668,619
|
$
|
1,758,671
|
September 30, 2011
|
December 31, 2010
|
||||||||||||||||
(Dollars in Thousands)
|
Nonaccrual
|
90 + DPD
|
Nonaccrual
|
90+ DPD | |||||||||||||
Commercial, Financial and Agricultural
|
$ | 1,041 | - | $ | 1,059 | $ | - | ||||||||||
Real Estate - Construction
|
1,140 | - | 1,907 | - | |||||||||||||
Real Estate - Commercial Mortgage
|
26,230 | - | 26,874 | - | |||||||||||||
Real Estate - Residential
|
21,276 | 26 | 30,189 | 120 | |||||||||||||
Real Estate - Home Equity
|
2,773 | - | 4,803 | 39 | |||||||||||||
Consumer
|
936 | - | 868 | - | |||||||||||||
Total Nonaccrual Loans
|
$ | 53,396 | 26 | $ | 65,700 | $ | 159 |
(Dollars in Thousands)
|
September 30, 2011
|
December 31, 2010
|
||||||
Commercial, Financial and Agricultural
|
$
|
623
|
$
|
768
|
||||
Real Estate-Construction
|
1,352
|
660
|
||||||
Real Estate-Commercial
|
14,116
|
10,635
|
||||||
Real Estate-Residential
|
11,547
|
8,884
|
||||||
Real Estate-Home Equity
|
766
|
648
|
||||||
Consumer
|
-
|
54
|
||||||
Loans, Net of Unearned Interest
|
$
|
28,404
|
$
|
21,649
|
Three Months Ended,
|
Nine Months Ended,
|
||||||||||||||||||||
September 30, 2011
|
September 30, 2011
|
||||||||||||||||||||
(Dollars in Thousands)
|
Number of Contracts
|
Pre-Modify
Recorded
Investment
|
Post-Modify
Recorded
Investment
|
Number of Contracts
|
Pre-Modify
Recorded
Investment
|
Post-Modify
Recorded
Investment
|
|||||||||||||||
Commercial, Financial and Agricultural
|
3
|
$
|
338
|
$
|
318
|
7
|
$
|
568
|
$
|
547
|
|||||||||||
Real Estate-Construction
|
2
|
1,176
|
1,175
|
3
|
1,352
|
1,330
|
|||||||||||||||
Real Estate-Commercial
|
16
|
5,094
|
5,347
|
39
|
13,658
|
13,768
|
|||||||||||||||
Real Estate-Residential
|
22
|
5,355
|
5,325
|
70
|
10,540
|
10,824
|
|||||||||||||||
Real Estate-Home Equity
|
5
|
461
|
472
|
9
|
639
|
660
|
|||||||||||||||
Consumer
|
-
|
-
|
-
|
2
|
24
|
23
|
|||||||||||||||
Total
|
48
|
$
|
12,424
|
$
|
12,637
|
130
|
$
|
26,781
|
$
|
27,152
|
(Dollars in Thousands)
|
Number of
Contracts
|
Post-Modify
Recorded
Investment
|
|||
Commercial, Financial and Agricultural
|
2
|
$
|
161
|
||
Real Estate-Construction
|
-
|
-
|
|||
Real Estate-Commercial
|
7
|
2,323
|
|||
Real Estate-Residential
|
9
|
1,967
|
|||
Real Estate-Home Equity
|
-
|
-
|
|||
Consumer
|
-
|
-
|
|||
Total
|
18
|
$
|
4,451
|
September 30, 2011
(Dollars in Thousands)
|
Commercial,
Financial,
Agriculture
|
Real Estate
|
Consumer
|
Total
|
||||||||||||
Special Mention
|
$ | 6,882 | $ | 47,532 | $ | 33 | $ | 54,447 | ||||||||
Substandard
|
10,196 | 191,395 | 1,517 | 203,108 | ||||||||||||
Doubtful
|
16 | 5,280 | - | 5,296 | ||||||||||||
Total Loans
|
$ | 17,094 | $ | 244,207 | $ | 1,550 | $ | 262,851 |
December 31, 2010
(Dollars in Thousands)
|
Commercial,
Financial,
Agriculture
|
Real Estate
|
Consumer
|
Total
|
||||||||||||
Special Mention
|
$ | 20,539 | $ | 100,008 | $ | 102 | $ | 120,649 | ||||||||
Substandard
|
11,540 | 221,671 | 1,584 | 234,795 | ||||||||||||
Doubtful
|
119 | 7,245 | 2 | 7,366 | ||||||||||||
Total Loans
|
$ | 32,198 | $ | 328,924 | $ | 1,688 | $ | 362,810 |
(Dollars in Thousands)
|
2011
|
2010
|
|||||
Balance, Beginning of Year
|
$
|
35,436
|
$
|
43,999
|
|||
Provision for Loan Losses
|
11,396
|
20,041
|
|||||
Recoveries on Loans Previously Charged-Off
|
2,077
|
2,653
|
|||||
Loans Charged-Off
|
(19,251
|
)
|
(28,973
|
)
|
|||
Balance, End of Period
|
$
|
29,658
|
$
|
37,720
|
September 30, 2011
(Dollars in Thousands)
|
Commercial,
Financial,
Agricultural
|
Real Estate Construction
|
Real Estate
Commercial
Mortgage
|
Real Estate
Residential
|
Real Estate
Home Equity
|
Consumer
|
Unallocated
|
Total
|
||||||||||
Allowance Allocated to:
|
||||||||||||||||||
Loans Individually
Evaluated for Impairment
|
$
|
419
|
484
|
5,931
|
4,062
|
103
|
-
|
-
|
|
$ |
10,999
|
|||||||
Loans Collectively
Evaluated for Impairment
|
1,195
|
656
|
4,823
|
7,426
|
2,029
|
1,530
|
1,000
|
18,659
|
||||||||||
Total
|
$
|
1,614
|
1,140
|
10,754
|
11,488
|
2,132
|
1,530
|
1,000
|
|
$ |
29,658
|
|||||||
Total Loans:
|
||||||||||||||||||
Individually Evaluated
for Impairment
|
$
|
1,435
|
2,690
|
44,911
|
26,063
|
1,756
|
-
|
-
|
|
$ |
76,855
|
|||||||
Collectively Evaluated
for Impairment
|
141,076
|
29,301
|
599,217
|
376,343
|
243,682
|
191,225
|
-
|
1,580,844
|
||||||||||
Total
|
$
|
142,511
|
31,991
|
644,128
|
402,406
|
245,438
|
191,225
|
-
|
|
$ |
1,657,699
|
December 31, 2010
(Dollars in Thousands)
|
Commercial,
Financial,
Agricultural
|
Real Estate
Construction
|
Real Estate
Commercial
Mortgage
|
Real Estate
Residential
|
Real Estate
Home Equity
|
Consumer
|
Unallocated
|
Total
|
|||||||||||
Allowance Allocated to:
|
|||||||||||||||||||
Loans Individually
Evaluated for Impairment
|
$
|
252
|
413
|
4,640
|
7,965
|
|
1,389
|
71
|
-
|
$
|
14,730
|
||||||||
Loans Collectively
Evaluated for Impairment
|
1,292
|
1,647
|
4,005
|
9,081
|
1,133
|
2,541
|
1,007
|
20,706
|
|||||||||||
Total
|
$
|
1,544
|
2,060
|
8,645
|
17,046
|
2,522
|
2,612
|
1,007
|
$
|
35,436
|
|||||||||
Total Loans:
|
|||||||||||||||||||
Individually Evaluated
for Impairment
|
|
1,685
|
2,533
|
42,369
|
37,779
|
|
3,278
|
144
|
-
|
$
|
87,788
|
||||||||
Collectively Evaluated
for Impairment
|
155,709
|
40,706
|
629,333
|
392,762
|
248,287
|
204,086
|
-
|
1,670,883
|
|||||||||||
Total
|
$
|
157,394
|
43,239
|
671,702
|
430,541
|
251,565
|
204,230
|
-
|
$ |
1,758,671
|
(Dollars in Thousands)
|
Unpaid Principal Balance
|
Recorded Investment With No Allowance
|
Recorded Investment With Allowance
|
Related Allowance
|
Average Recorded Investment(1)
|
|||||||||||||||
September 30, 2011:
|
||||||||||||||||||||
Commercial, Financial and Agricultural
|
$ | 1,435 | $ | 330 | $ | 1,105 | $ | 419 | $ | 1,582 | ||||||||||
Real Estate - Construction
|
2,690 | 148 | 2,542 | 484 | 2,000 | |||||||||||||||
Real Estate - Commercial Mortgage
|
44,911 | 16,477 | 28,434 | 5,931 | 43,722 | |||||||||||||||
Real Estate - Residential
|
26,063 | 4,016 | 22,047 | 4,062 | 27,946 | |||||||||||||||
Real Estate - Home Equity
|
1,756 | 406 | 1,350 | 103 | 2,054 | |||||||||||||||
Consumer
|
- | - | - | - | 39 | |||||||||||||||
Total
|
$ | 76,855 | $ | 21,377 | $ | 55,478 | $ | 10,999 | $ | 77,343 | ||||||||||
December 31, 2010:
|
||||||||||||||||||||
Commercial, Financial and Agricultural
|
$ | 1,684 | $ | 389 | $ | 1,295 | $ | 252 | $ | 2,768 | ||||||||||
Real Estate - Construction
|
2,533 | - | 2,533 | 413 | 5,801 | |||||||||||||||
Real Estate - Commercial Mortgage
|
42,370 | 9,030 | 33,340 | 4,640 | 48,820 | |||||||||||||||
Real Estate - Residential
|
37,780 | 3,295 | 34,485 | 7,965 | 41,958 | |||||||||||||||
Real Estate - Home Equity
|
3,278 | 375 | 2,903 | 1,389 | 3,087 | |||||||||||||||
Consumer
|
143 | - | 143 | 71 | 172 | |||||||||||||||
Total
|
$ | 87,788 | $ | 13,089 | $ | 74,699 | $ | 14,730 | $ | 102,606 |
NOTE 5 - INTANGIBLE ASSETS
|
September 30, 2011
|
December 31, 2010
|
|||||||||||||||
(Dollars in Thousands)
|
Gross
Amount
|
Accumulated
Amortization
|
Gross
Amount
|
Accumulated
Amortization
|
||||||||||||
Core Deposit Intangibles
|
$
|
47,176
|
$
|
46,858
|
$
|
47,176
|
$
|
46,434
|
||||||||
Goodwill
|
84,811
|
-
|
84,811
|
-
|
||||||||||||
Customer Relationship Intangible
|
1,867
|
1,405
|
1,867
|
1,261
|
||||||||||||
Total Intangible Assets
|
$
|
133,854
|
$
|
48,263
|
$
|
133,854
|
$
|
47,695
|
(Dollars in Thousands)
|
September 30, 2011
|
December 31, 2010
|
||||||
NOW Accounts
|
$
|
708,066
|
$
|
770,149
|
||||
Money Market Accounts
|
280,001
|
275,416
|
||||||
Savings Deposits
|
154,136
|
139,888
|
||||||
Other Time Deposits
|
316,967
|
372,266
|
||||||
Total Interest Bearing Deposits
|
$
|
1,459,170
|
$
|
1,557,719
|
NOTE 7 - STOCK-BASED COMPENSATION
|
Options
|
Shares
|
Weighted-Average Exercise Price
|
Weighted-Average Remaining Term
|
Aggregate Intrinsic Value
|
||||||||||||
Outstanding at January 1, 2011
|
60,384 | $ | 32.79 | 3.9 | $ | - | ||||||||||
Granted
|
- | - | - | - | ||||||||||||
Exercised
|
- | - | - | - | ||||||||||||
Forfeited or expired
|
- | - | - | - | ||||||||||||
Outstanding at September 30, 2011
|
60,384 | $ | 32.79 | 3.1 | $ | - | ||||||||||
Exercisable at September 30, 2011
|
60,384 | $ | 32.79 | 3.1 | $ | - |
Three Months Ended September 30,
|
Nine Months Ended September 30,
|
|||||||||||||||
(Dollars in Thousands)
|
2011
|
2010
|
2011
|
2010
|
||||||||||||
Discount Rate
|
5.55
|
%
|
5.75
|
%
|
5.55
|
%
|
5.75
|
%
|
||||||||
Long-Term Rate of Return on Assets
|
8.00
|
%
|
8.00
|
%
|
8.00
|
%
|
8.00
|
%
|
||||||||
Service Cost
|
$
|
1,507
|
$
|
1,423
|
$
|
4,521
|
$
|
4,268
|
||||||||
Interest Cost
|
1,311
|
1,183
|
3,932
|
3,550
|
||||||||||||
Expected Return on Plan Assets
|
(1,639
|
)
|
(1,549
|
)
|
(4,917
|
)
|
(4,646
|
)
|
||||||||
Prior Service Cost Amortization
|
116
|
127
|
347
|
382
|
||||||||||||
Net Loss Amortization
|
555
|
522
|
1,667
|
1,566
|
||||||||||||
Net Periodic Benefit Cost
|
$
|
1,850
|
$
|
1,706
|
$
|
5,550
|
$
|
5,120
|
Three Months Ended September 30,
|
Nine Months Ended September 30,
|
|||||||||||||||
(Dollars in Thousands)
|
2011
|
2010
|
2011
|
2010
|
||||||||||||
Discount Rate
|
5.55
|
%
|
5.75
|
%
|
5.55
|
%
|
5.75
|
%
|
||||||||
Interest Cost
|
$
|
37
|
$
|
38
|
$
|
111
|
$
|
113
|
||||||||
Prior Service Cost Amortization
|
45
|
45
|
134
|
135
|
||||||||||||
Net Loss Amortization
|
(104
|
)
|
(106
|
)
|
(310
|
)
|
(319
|
)
|
||||||||
Net Periodic Benefit Cost
|
$
|
(22
|
)
|
$
|
(23
|
)
|
$
|
(65
|
)
|
$
|
(71
|
)
|
NOTE 9 - COMMITMENTS AND CONTINGENCIES
|
(Dollars in Millions)
|
Amount
|
|||
Commitments to Extend Credit(1)
|
$
|
317
|
||
Standby Letters of Credit
|
$
|
12
|
(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
|
||||||||||||
September 30, 2011
|
||||||||||||||||
ASSETS:
|
||||||||||||||||
Securities available for sale:
|
||||||||||||||||
US Treasury
|
$ | 169,971 | $ | - | $ | - | $ | 169,971 | ||||||||
States and Political Subdivisions
|
6,321 | 52,299 | - | 58,620 | ||||||||||||
Mortgage-Backed Securities | - | 65,749 | - | 65,749 | ||||||||||||
Other Securities | - |