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.