Capital City Bank Group, Inc.
Reports First Quarter 2016 Results
TALLAHASSEE, Fla. (April 25, 2016) – Capital City Bank Group, Inc. (Nasdaq: CCBG) today reported net income of $1.6 million, or $0.10 per diluted share for the first quarter of 2016, compared to net income of $2.6 million, or $0.16 per diluted share for the fourth quarter of 2015, and net income of $1.0 million, or $0.06 per diluted share, for the first quarter of 2015.
HIGHLIGHTS
| · | Continued broad based loan growth -- 1.0% sequentially and 4.1% over prior year |
| · | Small business and commercial real estate pipelines are building |
| · | Nonperforming asset reduction of 10% sequentially and 48% from prior year |
| · | Steady growth in net interest income – up 3.8% over prior year driven by improved earning asset mix -- very well positioned for rising rates |
| · | Continued focus on noninterest expense reduction -- down 1.6% from prior year |
“Our first quarter performance showed meaningful progress year over year, and our fundamentals continue to improve,” said William G. Smith, Jr., Chairman, President and CEO. “Despite a challenging environment, I am encouraged by our past performance and remain optimistic that the strategies we have in place will continue to produce positive results. We remain focused on loan growth, prudent expense management and problem asset resolution, and I am pleased with how each of these areas is trending. Across all levels of the enterprise, our bankers are working hard to seek out new business opportunities in our markets that will contribute to our profitability while maintaining a keen focus on risk management. We are steadfast in our decision to value long-term profitability over short-term gains.”
Compared to the fourth quarter of 2015, performance reflects lower net interest income of $0.6 million, noninterest income of $0.5 million, and higher noninterest expense of $0.7 million, partially offset by lower income taxes of $0.8 million.
Compared to the first quarter of 2015, the increase in earnings was due to higher net interest income of $0.7 million and lower noninterest expense of $0.5 million, partially offset by lower noninterest income of $0.2 million, a $0.2 million increase in the loan loss provision, and higher income taxes of $0.2 million.
The Return on Average Assets was 0.24% and the Return on Average Equity was 2.39% for the first quarter of 2016, compared to 0.39% and 3.74%, respectively, for the fourth quarter of 2015, and 0.15% and 1.45%, respectively, for the first quarter in 2015.
Discussion of Operating Results
Tax equivalent net interest income for the first quarter of 2016 was $19.4 million compared to $20.0 million for the fourth quarter of 2015 and $18.6 million for the first quarter of 2015. The decrease in tax equivalent net interest income compared to the fourth quarter of 2015 reflects an interest recovery in the fourth quarter for a paid off loan, partially offset by higher income on overnight funds and prime-based loans. The increase in tax equivalent net interest income compared to the first quarter of 2015 reflects a positive shift in earning asset mix due to growth in the loan and investment portfolios, partially offset by unfavorable loan fees.
Despite favorable volume variance in both the loan and investment portfolios, the low rate environment continues to negatively impact loan yields. Aggressive lending competition in all markets has also unfavorably impacted the pricing for loans. The recent 25 basis point increase in the Federal Reserve’s target rate had a favorable impact on net interest income as our overnight funds and prime-based loans repriced higher with no corresponding increase in our deposit costs.
The net interest margin for the first quarter of 2016 was 3.20%, a decrease of 17 basis points from the fourth quarter of 2015, and a decrease of seven basis points from the first quarter of 2015. The decrease in the margin compared to the fourth quarter of 2015 was primarily attributable to aforementioned interest recovery. The decrease in the margin compared to the first quarter of 2015 was primarily attributable to overall growth in earning assets and a decline in loan yields.
The provision for loan losses for the first quarter of 2016 was $0.5 million compared to $0.5 million for the fourth quarter of 2015 and $0.3 million for the first quarter of 2015. We continue to realize favorable problem loan migration and improvement in key credit metrics. The slight increase in the provision compared to the first quarter of 2015 primarily reflects growth in the loan portfolio. Net charge-offs for the first quarter of 2016 totaled $0.8 million, or 0.21% (annualized) of average loans, compared to $1.3 million, or 0.34% (annualized), for the fourth quarter of 2015 and $1.7 million, or 0.49% (annualized), for the first quarter of 2015. At March 31, 2016, the allowance for loan losses was $13.6 million, or 0.90% of outstanding loans (net of overdrafts) and provided coverage of 150% of nonperforming loans compared to 0.93% and 135%, respectively, at December 31, 2015, and 1.10% and 96%, respectively, at March 31, 2015.
Noninterest income for the first quarter of 2016 totaled $12.7 million, a decrease of $0.5 million, or 4.1%, from the fourth quarter of 2015 primarily attributable to lower deposit fees of $0.3 million and wealth management fees of $0.1 million. The decrease in deposit fees primarily reflects lower utilization of our overdraft protection service during the first quarter as clients receive tax refunds. The reduction in wealth management fees reflects lower fees from our trust business which had a very strong fourth quarter due to higher estate management fees. Compared to the first quarter of 2015, noninterest income decreased $0.2 million, or 1.3%, reflective of a $0.2 million decrease in wealth management fees and a $0.1 million decrease in deposit fees, partially offset by higher bank card fees of $0.1 million. The reduction in wealth management fees generally reflects a lower level of assets under management. An increase in charged off checking accounts drove the reduction in deposit fees. Higher debit card activity and average ticket amount drove the increase in bank card fees.
Noninterest expense for the first quarter of 2016 totaled $28.9 million, an increase of $0.7 million, or 2.3%, over the fourth quarter of 2015. The increase reflects higher compensation expense of $0.4 million, other real estate expense of $0.2 million, and other expense of $0.3 million, partially offset by lower occupancy expense of $0.2 million. The increase in compensation expense was primarily due to higher payroll tax expense reflecting the reset of social security taxes. A higher level of property valuation adjustments drove the increase in other real estate expense. The increase in other expense was primarily attributable to higher legal fees and processing fees. The increase in legal fees reflects a higher level of legal support needed for problem asset resolutions and the increase in processing fees reflects a fourth quarter volume credit received from our debit card processor. Depending on specific activity during the quarter, legal fees can be volatile but have been trending down for the last four years. Lower furniture, fixtures, and equipment (“FF&E”) maintenance agreement expense and FF&E maintenance/repairs drove the reduction in occupancy expense. Compared to the first quarter of 2015, noninterest expense decreased $0.5 million, or 1.6%, attributable to lower compensation expense of $0.3 million and other expense of $0.2 million. A higher level of deferred loan cost partially offset by higher pension plan expense drove the reduction in compensation. The decrease in other expense reflects a lower level of consulting fees.
We realized income tax expense of $0.8 million (34.3% effective rate) for the first quarter of 2016 compared to $1.6 million (38.4% effective rate) for the fourth quarter of 2015 and $0.6 million (41.0% effective rate) for the first quarter of 2015. Income taxes for the fourth quarter of 2015 and the first quarter of 2015 include deferred tax write-offs of $0.1 million and $0.2 million, respectively, related to forfeited/expired stock awards. Absent future discrete events, we anticipate our effective income tax rate to remain in the range of 34%-35%.
Discussion of Financial Condition
Average earning assets were $2.441 billion for the first quarter of 2016, an increase of $87.0 million, or 3.7%, over the fourth quarter of 2015 and an increase of $134.2 million, or 5.8%, over the first quarter of 2015. The growth in earning assets over the fourth quarter of 2015 reflects a higher level of public fund deposits. The increase compared to the first quarter of 2015 reflects deposit growth, primarily noninterest bearing and savings accounts.
We maintained an average net overnight funds (deposits with banks plus fed funds sold less fed funds purchased) sold position of $286.2 million during the first quarter of 2016 compared to an average net overnight funds sold position of $222.8 million in the fourth quarter of 2015 and an average net overnight funds sold position of $302.4 million in the first quarter of 2015. The increase in net overnight funds compared to the fourth quarter of 2015 reflects higher levels of all deposit products except money market accounts and certificates of deposit, partially offset by growth in both the investment and loan portfolios. The decrease relative to the first quarter of 2015 is primarily attributable to growth in both the loan and investment portfolios, partially offset by an increase in average deposits.
Average loans increased $15.0 million, or 1.0% when compared to the fourth quarter of 2015, and have grown $58.9 million, or 4.1% compared to the first quarter of 2015. Growth over both prior periods has been experienced in all loan products, with the exception of commercial mortgages. Without compromising our credit standards or taking on inordinate interest rate risk, we continue to make minor modifications on some of our lending programs to try to mitigate the significant impact that consumer and business deleveraging is having on our portfolio. These programs, coupled with economic improvements in our anchor markets, have helped to increase overall production.
Nonperforming assets (nonaccrual loans and OREO) totaled $26.5 million at the end of the first quarter of 2016, a decrease of $3.1 million from the fourth quarter of 2015 and $24.1 million from the first quarter of 2015. Nonaccrual loans totaled $9.0 million at the end of the first quarter of 2016, a $1.3 million decrease from the fourth quarter of 2015 and a decrease of $7.7 million from the first quarter of 2015. Nonaccrual loan additions in the first quarter of 2016 totaled $3.8 million compared to $3.6 million and $5.8 million for the fourth and first quarters of 2015, respectively. The balance of OREO totaled $17.4 million at the end of the first quarter of 2016, a decrease of $1.8 million and $16.4 million, respectively, from the fourth and first quarters of 2015. For the first quarter of 2016, we added properties totaling $1.2 million, sold properties totaling $2.2 million, and recorded valuation adjustments totaling $0.8 million. Nonperforming assets represented 0.95% of total assets at March 31, 2016, compared to 1.06% at December 31, 2015 and 1.88% at March 31, 2015.
Average total deposits were $2.259 billion for the first quarter of 2016, an increase of $83.9 million, or 3.9%, over the fourth quarter of 2015, and an increase of $95.2 million, or 4.4%, over the first quarter of 2015. The increase in deposits when compared to the fourth quarter of 2015 primarily reflects higher levels of public fund NOW and savings accounts, partially offset by a decline in money market accounts and certificates of deposit. The increase in deposits, when compared to the first quarter of 2015, is attributable to higher levels of noninterest bearing and savings accounts. The seasonal inflows of public funds most likely peaked in the first quarter of 2016, and are expected to decline into the fourth quarter of 2016.
Deposit levels remain strong, particularly given the recent increase in the fed funds rate. Although competitive rates will be closely monitored given this change, we do not attempt to compete with higher rate paying competitors for deposits. Prudent pricing discipline will continue to be the key to managing our mix of deposits.
When compared to the fourth quarter of 2015, average borrowings decreased $2.0 million primarily due to a decline in repurchase agreements. Compared to the first quarter of 2015, average borrowings increased by $14.1 million, attributable to higher levels of repurchase agreement balances, partially offset by pay downs of FHLB advances.
Equity capital was $276.8 million as of March 31, 2016, compared to $274.4 million as of December 31, 2015 and $274.1 million as of March 31, 2015. Our leverage ratio was 10.34%, 10.65%, and 10.73%, respectively, for these periods. Further, as of March 31, 2016, our risk-adjusted capital ratio was 17.20% compared to 17.25% and 17.11% as of December 31, 2015 and March 31, 2015, respectively. Our common equity tier 1 ratio was 12.82% as of March 31, 2016, compared to 12.84% and 12.57% as of December 31, 2015 and March 31, 2015, respectively. All of our capital ratios significantly exceed the threshold to be designated as “well-capitalized” under the Basel III capital standards.
About Capital City Bank Group, Inc.
Capital City Bank Group, Inc. (Nasdaq: CCBG) is one of the largest publicly traded financial holding companies headquartered in Florida and has approximately $2.8 billion in assets. The Company provides a full range of banking services, including traditional deposit and credit services, mortgage banking, asset management, trust, merchant services, bankcards, data processing and securities brokerage services. The Company’s bank subsidiary, Capital City Bank, was founded in 1895 and now has 61 banking offices and 71 ATMs in Florida, Georgia and Alabama. For more information about Capital City Bank Group, Inc., visit www.ccbg.com.
FORWARD-LOOKING STATEMENTS
Forward-looking statements in this Press Release are based on current plans and expectations that are subject to uncertainties and risks, which could cause the Company’s future results to differ materially. The following factors, among others, could cause the Company’s actual results to differ: the accuracy of the Company’s financial statement estimates and assumptions; legislative or regulatory changes, including the Dodd-Frank Act, Basel III, and the ability to repay and qualified mortgage standards; fluctuations in inflation, interest rates, or monetary policies; the effects of security breaches and computer viruses that may affect the Company’s computer systems or fraud related to debit card products; changes in consumer spending and savings habits; the Company’s growth and profitability; the strength of the U.S. economy and the local economies where the Company conducts operations; the effects of the Company’s lack of a diversified loan portfolio, including the risks of geographic and industry concentrations; harsh weather conditions and man-made disasters; changes in the stock market and other capital and real estate markets; customer acceptance of third-party products and services; increased competition and its effect on pricing, including the long-term impact on our net interest margin from the repeal of Regulation Q; negative publicity and the impact on our reputation; technological changes, especially changes that allow out of market competitors to compete in our markets; changes in accounting; and the Company’s ability to manage the risks involved in the foregoing. Additional factors can be found in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2015, and the Company’s other filings with the SEC, which are available at the SEC’s internet site (http://www.sec.gov). 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 forward-looking statements or the reasons why actual results could differ.
CAPITAL CITY BANK GROUP, INC.
EARNINGS HIGHLIGHTS
Unaudited
| Three Months Ended | ||||||||||||
| (Dollars in thousands, except per share data) | Mar 31, 2016 | Dec 31, 2015 | Mar 31, 2015 | |||||||||
| EARNINGS | ||||||||||||
| Net Income | $ | 1,647 | $ | 2,602 | $ | 986 | ||||||
| Net Income Per Common Share | $ | 0.10 | $ | 0.16 | $ | 0.06 | ||||||
| PERFORMANCE | ||||||||||||
| Return on Average Assets | 0.24 | % | 0.39 | % | 0.15 | % | ||||||
| Return on Average Equity | 2.39 | % | 3.74 | % | 1.45 | % | ||||||
| Net Interest Margin | 3.20 | % | 3.37 | % | 3.27 | % | ||||||
| Noninterest Income as % of Operating Revenue | 39.76 | % | 40.05 | % | 40.98 | % | ||||||
| Efficiency Ratio | 90.13 | % | 85.11 | % | 93.42 | % | ||||||
| CAPITAL ADEQUACY | ||||||||||||
| Tier 1 Capital Ratio | 16.39 | % | 16.42 | % | 16.16 | % | ||||||
| Total Capital Ratio | 17.20 | % | 17.25 | % | 17.11 | % | ||||||
| Tangible Common Equity Ratio | 7.09 | % | 6.99 | % | 7.26 | % | ||||||
| Leverage Ratio | 10.34 | % | 10.65 | % | 10.73 | % | ||||||
| Common Equity Tier 1 Ratio | 12.82 | % | 12.84 | % | 12.57 | % | ||||||
| Equity to Assets | 9.91 | % | 9.81 | % | 10.18 | % | ||||||
| ASSET QUALITY | ||||||||||||
| Allowance as % of Non-Performing Loans | 150.44 | % | 135.40 | % | 95.83 | % | ||||||
| Allowance as a % of Loans | 0.90 | % | 0.93 | % | 1.10 | % | ||||||
| Net Charge-Offs as % of Average Loans | 0.21 | % | 0.34 | % | 0.49 | % | ||||||
| Nonperforming Assets as % of Loans and ORE | 1.73 | % | 1.94 | % | 3.38 | % | ||||||
| Nonperforming Assets as % of Total Assets | 0.95 | % | 1.06 | % | 1.88 | % | ||||||
| STOCK PERFORMANCE | ||||||||||||
| High | $ | 15.88 | $ | 16.05 | $ | 16.33 | ||||||
| Low | 12.83 | 13.56 | 13.16 | |||||||||
| Close | $ | 14.59 | $ | 15.35 | $ | 16.25 | ||||||
| Average Daily Trading Volume | 14,207 | 19,500 | 15,058 | |||||||||
CAPITAL CITY BANK GROUP, INC.
CONSOLIDATED STATEMENT OF FINANCIAL CONDITION
Unaudited
| 2016 | 2015 | |||||||||||||||||||
| (Dollars in thousands) | First Quarter | Fourth Quarter | Third Quarter | Second Quarter | First Quarter | |||||||||||||||
| ASSETS | ||||||||||||||||||||
| Cash and Due From Banks | $ | 45,914 | $ | 51,288 | $ | 42,917 | $ | 61,484 | $ | 51,948 | ||||||||||
| Funds Sold and Interest Bearing Deposits | 304,908 | 327,617 | 167,787 | 185,572 | 296,888 | |||||||||||||||
| Total Cash and Cash Equivalents | 350,822 | 378,905 | 210,704 | 247,056 | 348,836 | |||||||||||||||
| Investment Securities Available for Sale | 462,444 | 451,028 | 444,071 | 433,688 | 404,887 | |||||||||||||||
| Investment Securities Held to Maturity | 187,079 | 187,892 | 193,964 | 201,805 | 183,489 | |||||||||||||||
| Total Investment Securities | 649,523 | 638,920 | 638,035 | 635,493 | 588,376 | |||||||||||||||
| Loans Held for Sale | 10,475 | 11,632 | 10,960 | 10,991 | 13,334 | |||||||||||||||
| Loans, Net of Unearned Interest | ||||||||||||||||||||
| Commercial, Financial, & Agricultural | 183,681 | 179,816 | 169,588 | 151,116 | 143,951 | |||||||||||||||
| Real Estate - Construction | 42,538 | 46,484 | 49,475 | 44,216 | 41,595 | |||||||||||||||
| Real Estate - Commercial | 503,259 | 499,813 | 491,734 | 510,962 | 507,681 | |||||||||||||||
| Real Estate - Residential | 285,772 | 285,748 | 280,690 | 284,333 | 287,481 | |||||||||||||||
| Real Estate - Home Equity | 234,128 | 233,901 | 232,254 | 230,388 | 228,171 | |||||||||||||||
| Consumer | 245,197 | 240,434 | 238,884 | 238,599 | 230,984 | |||||||||||||||
| Other Loans | 10,297 | 4,837 | 10,094 | 12,048 | 9,243 | |||||||||||||||
| Overdrafts | 1,963 | 1,242 | 2,464 | 2,603 | 2,348 | |||||||||||||||
| Total Loans, Net of Unearned Interest | 1,506,835 | 1,492,275 | 1,475,183 | 1,474,265 | 1,451,454 | |||||||||||||||
| Allowance for Loan Losses | (13,613 | ) | (13,953 | ) | (14,737 | ) | (15,236 | ) | (16,090 | ) | ||||||||||
| Loans, Net | 1,493,222 | 1,478,322 | 1,460,446 | 1,459,029 | 1,435,364 | |||||||||||||||
| Premises and Equipment, Net | 98,029 | 98,819 | 98,218 | 99,108 | 100,038 | |||||||||||||||
| Goodwill | 84,811 | 84,811 | 84,811 | 84,811 | 84,811 | |||||||||||||||
| Other Real Estate Owned | 17,450 | 19,290 | 25,219 | 30,167 | 33,835 | |||||||||||||||
| Other Assets | 87,854 | 87,161 | 86,701 | 87,489 | 89,121 | |||||||||||||||
| Total Other Assets | 288,144 | 290,081 | 294,949 | 301,575 | 307,805 | |||||||||||||||
| Total Assets | $ | 2,792,186 | $ | 2,797,860 | $ | 2,615,094 | $ | 2,654,144 | $ | 2,693,715 | ||||||||||
| LIABILITIES | ||||||||||||||||||||
| Deposits: | ||||||||||||||||||||
| Noninterest Bearing Deposits | $ | 790,040 | $ | 758,283 | $ | 720,824 | $ | 723,866 | $ | 707,470 | ||||||||||
| NOW Accounts | 786,432 | 848,330 | 688,491 | 734,237 | 801,037 | |||||||||||||||
| Money Market Accounts | 254,682 | 248,367 | 261,050 | 264,475 | 257,684 | |||||||||||||||
| Regular Savings Accounts | 286,807 | 269,162 | 262,843 | 255,185 | 250,862 | |||||||||||||||
| Certificates of Deposit | 173,447 | 178,707 | 181,775 | 186,881 | 192,961 | |||||||||||||||
| Total Deposits | 2,291,408 | 2,302,849 | 2,114,983 | 2,164,644 | 2,210,014 | |||||||||||||||
| Short-Term Borrowings | 62,922 | 61,058 | 65,355 | 53,698 | 49,488 | |||||||||||||||
| Subordinated Notes Payable | 62,887 | 62,887 | 62,887 | 62,887 | 62,887 | |||||||||||||||
| Other Long-Term Borrowings | 27,062 | 28,265 | 29,042 | 29,733 | 30,418 | |||||||||||||||
| Other Liabilities | 71,074 | 68,449 | 69,168 | 71,144 | 66,821 | |||||||||||||||
| Total Liabilities | 2,515,353 | 2,523,508 | 2,341,435 | 2,382,106 | 2,419,628 | |||||||||||||||
| SHAREOWNERS' EQUITY | ||||||||||||||||||||
| Common Stock | 172 | 172 | 171 | 172 | 175 | |||||||||||||||
| Additional Paid-In Capital | 38,671 | 38,256 | 37,738 | 37,625 | 42,941 | |||||||||||||||
| Retained Earnings | 259,139 | 258,181 | 256,265 | 255,096 | 251,765 | |||||||||||||||
| Accumulated Other Comprehensive Loss, Net of Tax | (21,149 | ) | (22,257 | ) | (20,515 | ) | (20,855 | ) | (20,794 | ) | ||||||||||
| Total Shareowners' Equity | 276,833 | 274,352 | 273,659 | 272,038 | 274,087 | |||||||||||||||
| Total Liabilities and Shareowners' Equity | $ | 2,792,186 | $ | 2,797,860 | $ | 2,615,094 | $ | 2,654,144 | $ | 2,693,715 | ||||||||||
| OTHER BALANCE SHEET DATA | ||||||||||||||||||||
| Earning Assets | $ | 2,471,741 | $ | 2,470,445 | $ | 2,291,966 | $ | 2,306,322 | $ | 2,350,052 | ||||||||||
| Core Deposits | 0 | 0 | 0 | 0 | 0 | |||||||||||||||
| Other | 0 | 0 | 0 | 0 | 0 | |||||||||||||||
| Interest Bearing Liabilities | 1,654,239 | 1,696,776 | 1,551,443 | 1,587,096 | 1,645,337 | |||||||||||||||
| Book Value Per Diluted Share | $ | 16.04 | $ | 15.93 | $ | 15.91 | $ | 15.80 | $ | 15.59 | ||||||||||
| Tangible Book Value Per Diluted Share | 11.13 | 11.00 | 10.98 | 10.87 | 10.77 | |||||||||||||||
| Actual Basic Shares Outstanding | 17,222 | 17,157 | 17,144 | 17,154 | 17,533 | |||||||||||||||
| Actual Diluted Shares Outstanding | 17,254 | 17,226 | 17,223 | 17,216 | 17,579 | |||||||||||||||
CAPITAL CITY BANK GROUP, INC.
CONSOLIDATED STATEMENT OF INCOME
Unaudited
| 2016 | 2015 | |||||||||||||||||||
| (Dollars in thousands, except per share data) | First Quarter | Fourth Quarter | Third Quarter | Second Quarter | First Quarter | |||||||||||||||
| INTEREST INCOME | ||||||||||||||||||||
| Interest and Fees on Loans | $ | 18,045 | $ | 18,861 | $ | 18,214 | $ | 18,231 | $ | 17,863 | ||||||||||
| Investment Securities | 1,637 | 1,572 | 1,540 | 1,451 | 1,294 | |||||||||||||||
| Funds Sold | 362 | 169 | 123 | 151 | 189 | |||||||||||||||
| Total Interest Income | 20,044 | 20,602 | 19,877 | 19,833 | 19,346 | |||||||||||||||
| INTEREST EXPENSE | ||||||||||||||||||||
| Deposits | 221 | 219 | 220 | 259 | 246 | |||||||||||||||
| Short-Term Borrowings | 10 | 9 | 14 | 15 | 21 | |||||||||||||||
| Subordinated Notes Payable | 387 | 354 | 344 | 338 | 332 | |||||||||||||||
| Other Long-Term Borrowings | 216 | 226 | 233 | 237 | 240 | |||||||||||||||
| Total Interest Expense | 834 | 808 | 811 | 849 | 839 | |||||||||||||||
| Net Interest Income | 19,210 | 19,794 | 19,066 | 18,984 | 18,507 | |||||||||||||||
| Provision for Loan Losses | 452 | 513 | 413 | 375 | 293 | |||||||||||||||
| Net Interest Income after Provision for Loan Losses | 18,758 | 19,281 | 18,653 | 18,609 | 18,214 | |||||||||||||||
| NONINTEREST INCOME | ||||||||||||||||||||
| Deposit Fees | 5,400 | 5,664 | 5,721 | 5,682 | 5,541 | |||||||||||||||
| Bank Card Fees | 2,853 | 2,866 | 2,826 | 2,844 | 2,742 | |||||||||||||||
| Wealth Management Fees | 1,792 | 1,893 | 1,818 | 1,776 | 2,046 | |||||||||||||||
| Mortgage Banking Fees | 1,030 | 1,043 | 1,306 | 1,203 | 987 | |||||||||||||||
| Data Processing Fees | 347 | 335 | 400 | 364 | 373 | |||||||||||||||
| Other | 1,255 | 1,420 | 1,157 | 2,925 | 1,159 | |||||||||||||||
| Total Noninterest Income | 12,677 | 13,221 | 13,228 | 14,794 | 12,848 | |||||||||||||||
| NONINTEREST EXPENSE | ||||||||||||||||||||
| Compensation | 16,241 | 15,833 | 16,653 | 16,404 | 16,524 | |||||||||||||||
| Occupancy, Net | 4,459 | 4,638 | 4,446 | 4,258 | 4,396 | |||||||||||||||
| Other Real Estate, Net | 1,425 | 1,241 | 1,302 | 931 | 1,497 | |||||||||||||||
| Other | 6,805 | 6,568 | 6,763 | 6,846 | 6,973 | |||||||||||||||
| Total Noninterest Expense | 28,930 | 28,280 | 29,164 | 28,439 | 29,390 | |||||||||||||||
| OPERATING PROFIT | 2,505 | 4,222 | 2,717 | 4,964 | 1,672 | |||||||||||||||
| Income Tax Expense | 858 | 1,620 | 1,034 | 1,119 | 686 | |||||||||||||||
| NET INCOME | $ | 1,647 | $ | 2,602 | $ | 1,683 | $ | 3,845 | $ | 986 | ||||||||||
| PER SHARE DATA | ||||||||||||||||||||
| Basic Income | $ | 0.10 | $ | 0.16 | $ | 0.09 | $ | 0.22 | $ | 0.06 | ||||||||||
| Diluted Income | 0.10 | 0.16 | 0.09 | 0.22 | 0.06 | |||||||||||||||
| Cash Dividend | $ | 0.04 | $ | 0.04 | $ | 0.03 | $ | 0.03 | $ | 0.03 | ||||||||||
| AVERAGE SHARES | ||||||||||||||||||||
| Basic | 17,202 | 17,145 | 17,150 | 17,296 | 17,508 | |||||||||||||||
| Diluted | 17,235 | 17,214 | 17,229 | 17,358 | 17,555 | |||||||||||||||
CAPITAL CITY BANK GROUP, INC.
ALLOWANCE FOR LOAN LOSSES
AND RISK ELEMENT ASSETS
Unaudited
| 2016 | 2015 | 2015 | 2015 | 2015 | ||||||||||||||||
| (Dollars in thousands, except per share data) | First Quarter | Fourth Quarter | Third Quarter | Second Quarter | First Quarter | |||||||||||||||
| ALLOWANCE FOR LOAN LOSSES | ||||||||||||||||||||
| Balance at Beginning of Period | $ | 13,953 | $ | 14,737 | $ | 15,236 | $ | 16,090 | $ | 17,539 | ||||||||||
| Provision for Loan Losses | 452 | 513 | 413 | 375 | 293 | |||||||||||||||
| Net Charge-Offs | 792 | 1,297 | 912 | 1,229 | 1,742 | |||||||||||||||
| Balance at End of Period | $ | 13,613 | $ | 13,953 | $ | 14,737 | $ | 15,236 | $ | 16,090 | ||||||||||
| As a % of Loans | 0.90 | % | 0.93 | % | 0.99 | % | 1.03 | % | 1.10 | % | ||||||||||
| As a % of Nonperforming Loans | 150.44 | % | 135.40 | % | 112.17 | % | 99.46 | % | 95.83 | % | ||||||||||
| CHARGE-OFFS | ||||||||||||||||||||
| Commercial, Financial and Agricultural | $ | 37 | $ | 135 | $ | 365 | $ | 239 | $ | 290 | ||||||||||
| Real Estate - Construction | — | — | — | — | — | |||||||||||||||
| Real Estate - Commercial | 274 | 87 | (26 | ) | 285 | 904 | ||||||||||||||
| Real Estate - Residential | 478 | 587 | 476 | 484 | 305 | |||||||||||||||
| Real Estate - Home Equity | 215 | 397 | 370 | 454 | 182 | |||||||||||||||
| Consumer | 439 | 656 | 318 | 351 | 576 | |||||||||||||||
| Total Charge-Offs | $ | 1,443 | $ | 1,862 | $ | 1,503 | $ | 1,813 | $ | 2,257 | ||||||||||
| RECOVERIES | ||||||||||||||||||||
| Commercial, Financial and Agricultural | $ | 39 | $ | 57 | $ | 45 | $ | 82 | $ | 55 | ||||||||||
| Real Estate - Construction | — | — | — | — | — | |||||||||||||||
| Real Estate - Commercial | 81 | 13 | 86 | 54 | 30 | |||||||||||||||
| Real Estate - Residential | 236 | 264 | 193 | 200 | 48 | |||||||||||||||
| Real Estate - Home Equity | 59 | 37 | 42 | 33 | 24 | |||||||||||||||
| Consumer | 236 | 194 | 225 | 215 | 358 | |||||||||||||||
| Total Recoveries | $ | 651 | $ | 565 | $ | 591 | $ | 584 | $ | 515 | ||||||||||
| NET CHARGE-OFFS | $ | 792 | $ | 1,297 | $ | 912 | $ | 1,229 | $ | 1,742 | ||||||||||
| Net Charge-Offs as a % of Average Loans(1) | 0.21 | % | 0.34 | % | 0.24 | % | 0.33 | % | 0.49 | % | ||||||||||
| RISK ELEMENT ASSETS | ||||||||||||||||||||
| Nonaccruing Loans | $ | 9,049 | $ | 10,305 | $ | 13,138 | $ | 15,320 | $ | 16,790 | ||||||||||
| Other Real Estate Owned | 17,450 | 19,290 | 25,219 | 30,167 | 33,835 | |||||||||||||||
| Total Nonperforming Assets | $ | 26,499 | $ | 29,595 | $ | 38,357 | $ | 45,487 | $ | 50,625 | ||||||||||
| Past Due Loans 30-89 Days | $ | 3,599 | $ | 5,775 | $ | 4,335 | $ | 5,858 | $ | 3,689 | ||||||||||
| Past Due Loans 90 Days or More | — | — | — | — | — | |||||||||||||||
| Classified Loans | 49,780 | 53,551 | 61,411 | 69,152 | 74,247 | |||||||||||||||
| Performing Troubled Debt Restructuring's | $ | 36,700 | $ | 35,634 | $ | 35,961 | $ | 41,632 | $ | 42,590 | ||||||||||
| Nonperforming Loans as a % of Loans | 0.60 | % | 0.69 | % | 0.88 | % | 1.03 | % | 1.15 | % | ||||||||||
| Nonperforming Assets as a % of Loans and Other Real Estate | 1.73 | % | 1.94 | % | 2.54 | % | 3.00 | % | 3.38 | % | ||||||||||
| Nonperforming Assets as a % of Total Assets | 0.95 | % | 1.06 | % | 1.47 | % | 1.71 | % | 1.88 | % | ||||||||||
(1) Annualized
CAPITAL CITY BANK GROUP, INC.
AVERAGE BALANCE AND INTEREST RATES(1)
Unaudited
| First Quarter 2016 | Fourth Quarter 2015 | Third Quarter 2015 | Second Quarter 2015 | First Quarter 2015 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| (Dollars in thousands) | Average Balance | Interest | Average Rate | Average Balance | Interest | Average Rate | Average Balance | Interest | Average Rate | Average Balance | Interest | Average Rate | Average Balance | Interest | Average Rate | |||||||||||||||||||||||||||||||||||||||||||||
| ASSETS: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Loans, Net of Unearned Interest | $ | 1,507,508 | 18,141 | 4.84 | % | $ | 1,492,521 | 18,952 | 5.04 | % | $ | 1,483,657 | 18,290 | 4.89 | % | $ | 1,473,954 | 18,285 | 4.98 | % | $ | 1,448,617 | 17,909 | 5.01 | % | |||||||||||||||||||||||||||||||||||
| Investment Securities | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Taxable Investment Securities | 552,092 | 1,420 | 1.03 | 544,542 | 1,365 | 0.99 | 543,550 | 1,347 | 0.98 | 540,735 | 1,313 | 0.97 | 491,637 | 1,198 | 0.98 | |||||||||||||||||||||||||||||||||||||||||||||
| Tax-Exempt Investment Securities | 94,951 | 332 | 1.40 | 93,838 | 328 | 1.40 | 92,685 | 304 | 1.31 | 76,191 | 219 | 1.15 | 63,826 | 154 | 0.96 | |||||||||||||||||||||||||||||||||||||||||||||
| Total Investment Securities | 647,043 | 1,752 | 1.09 | 638,380 | 1,693 | 1.05 | 636,235 | 1,651 | 1.03 | 616,926 | 1,532 | 0.99 | 555,463 | 1,352 | 0.98 | |||||||||||||||||||||||||||||||||||||||||||||
| Funds Sold | 286,167 | 362 | 0.51 | 222,828 | 169 | 0.30 | 190,931 | 123 | 0.26 | 237,132 | 151 | 0.26 | 302,405 | 189 | 0.25 | |||||||||||||||||||||||||||||||||||||||||||||
| Total Earning Assets | 2,440,718 | $ | 20,255 | 3.34 | % | 2,353,729 | $ | 20,814 | 3.51 | % | 2,310,823 | $ | 20,064 | 3.45 | % | 2,328,012 | $ | 19,968 | 3.44 | % | 2,306,485 | $ | 19,450 | 3.42 | % | |||||||||||||||||||||||||||||||||||
| Cash and Due From Banks | 47,834 | 45,875 | 45,872 | 52,473 | 48,615 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Allowance for Loan Losses | (13,999 | ) | (14,726 | ) | (15,403 | ) | (16,070 | ) | (17,340 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Other Assets | 289,193 | 293,336 | 298,400 | 306,286 | 310,791 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Total Assets | $ | 2,763,746 | $ | 2,678,214 | $ | 2,639,692 | $ | 2,670,701 | $ | 2,648,551 | ||||||||||||||||||||||||||||||||||||||||||||||||||
| LIABILITIES: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Interest Bearing Deposits | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| NOW Accounts | $ | 798,996 | $ | 69 | 0.03 | % | $ | 725,538 | $ | 62 | 0.03 | % | $ | 709,130 | $ | 60 | 0.03 | % | $ | 761,388 | $ | 64 | 0.03 | % | $ | 794,308 | $ | 68 | 0.03 | % | ||||||||||||||||||||||||||||||
| Money Market Accounts | 252,446 | 29 | 0.05 | 259,091 | 30 | 0.05 | 261,749 | 31 | 0.05 | 256,265 | 32 | 0.05 | 254,483 | 41 | 0.07 | |||||||||||||||||||||||||||||||||||||||||||||
| Savings Accounts | 277,745 | 34 | 0.05 | 266,468 | 33 | 0.05 | 258,752 | 32 | 0.05 | 253,808 | 31 | 0.05 | 242,256 | 30 | 0.05 | |||||||||||||||||||||||||||||||||||||||||||||
| Time Deposits | 177,057 | 89 | 0.20 | 180,124 | 94 | 0.21 | 183,976 | 97 | 0.21 | 189,213 | 132 | 0.28 | 194,655 | 107 | 0.22 | |||||||||||||||||||||||||||||||||||||||||||||
| Total Interest Bearing Deposits | 1,506,244 | 221 | 0.06 | % | 1,431,221 | 219 | 0.06 | % | 1,413,607 | 220 | 0.06 | % | 1,460,674 | 259 | 0.07 | % | 1,485,702 | 246 | 0.07 | % | ||||||||||||||||||||||||||||||||||||||||
| Short-Term Borrowings | 66,938 | 10 | 0.06 | % | 68,093 | 9 | 0.06 | % | 61,548 | 14 | 0.09 | % | 54,237 | 15 | 0.11 | % | 49,809 | 21 | 0.17 | % | ||||||||||||||||||||||||||||||||||||||||
| Subordinated Notes Payable | 62,887 | 387 | 2.43 | 62,887 | 354 | 2.20 | 62,887 | 344 | 2.14 | 62,887 | 338 | 2.13 | 62,887 | 332 | 2.11 | |||||||||||||||||||||||||||||||||||||||||||||
| Other Long-Term Borrowings | 27,769 | 216 | 3.12 | 28,618 | 226 | 3.14 | 29,383 | 233 | 3.15 | 30,067 | 237 | 3.16 | 30,751 | 240 | 3.16 | |||||||||||||||||||||||||||||||||||||||||||||
| Total Interest Bearing Liabilities | 1,663,838 | $ | 834 | 0.20 | % | 1,590,819 | $ | 808 | 0.20 | % | 1,567,425 | $ | 811 | 0.21 | % | 1,607,865 | $ | 849 | 0.21 | % | 1,629,149 | $ | 839 | 0.21 | % | |||||||||||||||||||||||||||||||||||
| Noninterest Bearing Deposits | 752,356 | 743,497 | 723,826 | 717,725 | 677,674 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Other Liabilities | 70,088 | 68,005 | 73,485 | 70,690 | 66,424 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Total Liabilities | 2,486,282 | 2,402,321 | 2,364,736 | 2,396,280 | 2,373,247 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
| SHAREOWNERS' EQUITY: | 277,464 | 275,893 | 274,956 | 274,421 | 275,304 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Total Liabilities and Shareowners' Equity | $ | 2,763,746 | $ | 2,678,214 | $ | 2,639,692 | $ | 2,670,701 | $ | 2,648,551 | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Interest Rate Spread | $ | 19,421 | 3.14 | % | $ | 20,006 | 3.31 | % | $ | 19,253 | 3.24 | % | $ | 19,119 | 3.23 | % | $ | 18,611 | 3.21 | % | ||||||||||||||||||||||||||||||||||||||||
| Interest Income and Rate Earned(1) | 20,255 | 3.34 | 20,814 | 3.51 | 20,064 | 3.45 | 19,968 | 3.44 | 19,450 | 3.42 | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Interest Expense and Rate Paid(2) | 834 | 0.14 | 808 | 0.14 | 811 | 0.14 | 849 | 0.15 | 839 | 0.15 | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Net Interest Margin | $ | 19,421 | 3.20 | % | $ | 20,006 | 3.37 | % | $ | 19,253 | 3.31 | % | $ | 19,119 | 3.29 | % | $ | 18,611 | 3.27 | % | ||||||||||||||||||||||||||||||||||||||||
(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.