Capital City Bank Group, Inc.
 
Reports Second Quarter 2020 Results
 
TALLAHASSEE,
 
Fla. (July 21, 2020) – Capital City Bank Group, Inc.
 
(NASDAQ: CCBG) today reported net income of $9.1
million, or $0.55 per diluted share for the second quarter of 20
 
20 compared to net income of $4.3 million, or $0.25 per diluted share
for the first quarter of 2020,
 
and $7.3 million, or $0.44 per diluted share for the second quarter
 
of 2019.
 
For the first six months of
2020,
 
net income totaled $13.4
 
million, or $0.80
 
per diluted share, compared to net income of $13.8 million, or
 
$0.82 per diluted
share, for the same period of 2019.
 
QUARTER HIGHLIGHTS
●
 
Return on assets improved to 1.10%
 
and efficiency ratio to 67%
 
●
 
Diversified revenue and strong
 
balance sheet continue to buffer impact of pandemic and
 
lower interest rates
●
 
Strong performance by Capital City Home
 
Loans (“CCHL”) contributed significantly ($0.20/share)
●
 
Pandemic related stimulus programs
 
contributed $190 million in loan growth
 
and deposit balances totaling $243 million
 
 
“Though the second quarter presented a challenging environment,
 
I am pleased with our financial performance and how we
responded to the COVID-19 pandemic,” said William
 
G. Smith, Jr., Chairman, President
 
and CEO. “We
 
issued $190 million in
Paycheck Protection Program (PPP) loans to assist our small
 
business clients and took critical precautions to protect the health and
welfare of our associates and clients as we reopened our offices
 
for routine lobby service. Despite a challenged economy,
 
the
mortgage market has been robust, and our recent alliance with
 
CCHL contributed $0.20 per share during the second quarter.
Earnings from CCHL and SBA/PPP fees helped mitigate the
 
adverse impacts of a lower interest rate environment and reserve
 
build
attributable to the adoption
 
of CECL and COVID-19. I anticipate the second half of 2020
 
will remain challenging but am hopeful it
will bring improvement. We
 
have taken a prudent and measured approach to managing through this ongoing
 
crisis and continue to
focus on our commitments to our associates, clients, communities,
 
and shareowners. I remain optimistic about the long-term
 
outlook
for Capital City and appreciate your continued support.”
 
COVID-19 Update
 
●
 
Lobby access has been re-opened for 56 of our 57
 
banking offices and operations are subject to
 
national guidelines and local
safety ordinances to protect both clients and associates – we will
 
continue to monitor changing conditions with the pandemic and
its impact on client and associate interactions within our banking offices
 
●
 
Most operational associates returned to work in early June, but
 
we have extended some remote work arrangements on a case-by-
case basis
●
 
Enhanced digital access options are available for banking products
 
and access to sales associates
 
●
 
Continue to monitor COVID-19 case count trends in our markets and respond
 
appropriately to help ensure client and associate
safety
●
 
Continued support of clients with the Small Business Administration
 
Payment Protection Program (“SBA PPP”) - we will
actively assist our clients with the forgiveness process
 
in coming quarters
●
 
We continued to assist
 
our clients and communities in the second quarter by processing a
 
total of 2,217 loan extensions ($330
million, or 16% of loan balances at June 30, 2020).
 
 
Discussion of Operating Results
 
Summary Overview
 
Compared to the first quarter of 2020,
 
the $11.1 million increase in operating profit was attributable
 
to a $14.7 million increase in
noninterest income (primarily mortgage banking revenues) and
 
a $3.0 million decrease in the provision for credit losses, partially
offset by higher noninterest expense of $6.3 million and
 
lower net interest income of $0.3
 
million.
 
 
Compared to the second quarter of 2019, the $6.6
 
million increase in operating profit was attributable to a $17.4 million increase
 
in
noninterest income, partially offset by a higher noninterest
 
expense of $8.9 million, a $1.4 million increase in the provision
 
for credit
losses and lower net interest income of $0.5
 
million.
 
 
The $3.4 million increase in operating profit for the first six months
 
of 2020 versus the comparable period of 2019 was attributable
to higher noninterest income of $20.4 million and net interest
 
income of $0.3 million, partially offset by a $5.6
 
million increase in
the provision for credit losses and higher noninterest expense
 
of $11.7 million.
 
 
The aforementioned period over period variances reflect the acquisition
 
of a 51% membership interest and consolidation of CCHL
late in the first quarter of 2020.
 
Our return on average assets (“ROA”) was 1.10%
 
and our return on average equity (“ROE”) was 11
 
.03%
 
for the second quarter of
2020.
 
These metrics were 0.57%
 
and 5.20%
 
for the first quarter of 2020, respectively,
 
and 0.98% and 9.37%
 
for the second quarter
of 2019, respectively.
 
For the first six months of 2020, our ROA was 0.85% and
 
our ROE was 8.12% compared to 0.92% and
8.94%, respectively, for
 
the same period of 2019.
 
 
Net Interest Income/Net Interest
 
Margin
 
Tax-equivalent net interest
 
income for the second quarter of 2020 was $25.6
 
million compared to $25.9 million for the first quarter
of 2020 and $26.1 million for the second quarter of 2019.
 
The decrease compared to both prior periods reflected lower rates
 
earned
on overnight funds, investment securities and variable rate loans, partially
 
offset by lower cost for our negotiated rate
 
deposits.
 
For
the first six months of 2020, tax-equivalent net interest income
 
totaled $51.4 million compared to $51.2 million in 2019.
 
The
increase was primarily due to loan growth and a reduction in
 
the cost of our negotiated rate deposits, partially offset
 
by lower rates
on our earning assets.
 
 
The federal funds target rate ended the second quarter
 
of 2020 in a range of 0.00%-0.25%, unchanged from the end of the
 
first
quarter of 2020.
 
However, since 150 basis points of rate cuts
 
were made late in the first quarter of 2020, we experienced lower
repricing of our variable/adjustable rate earning assets and investment
 
securities during the second quarter 2020.
 
We continue to
prudently manage our deposit mix and overall cost of funds, which
 
was 14 basis points for the second quarter of 2020 compared to
23 basis points for the first quarter of 2020.
 
Due to highly competitive fixed-rate loan pricing in our markets, we continue
 
to review
our loan pricing and make adjustments where we believe appropriate
 
and prudent.
 
 
Our net interest margin for the second quarter of 20
 
20 was 3.41%, a decrease of 37 basis points from the first quarter
 
of 2020 and 44
basis points from the second quarter of 2019.
 
For the first six months of 2020, the net interest margin decreased
 
21 basis points to
3.59%.
 
The decrease compared to all prior periods was attributable to
 
lower rates on our variable and adjustable rate earning assets,
partially offset by a lower cost of funds.
 
Our net interest margin for the second quarter of 2020
 
excluding the impact of SBA PPP
loans was 3.46%.
 
We discuss the effect
 
of the pandemic related stimulus programs on our balance
 
sheet in more detail below under
Discussion of Financial Condition
.
 
 
Provision for Credit Loss
 
 
The provision for credit losses for the second quarter of 2020
 
was $2.0 million compared to $5.0 million for the first quarter of 2020
and $0.6 million for the second quarter of 2019.
 
For the first six months of 2020, the provision was $7.0 million compared
 
to $1.4
million in 2019.
 
The higher provision in 2020 reflected expected losses due to
 
deterioration in economic conditions related to
COVID-19.
 
We discuss this exposure
 
further below.
 
Noninterest Income and Noninterest
 
Expense
 
CCHL’s
 
mortgage banking operations impacted our noninterest income
 
and noninterest expense for the three and six month periods
ended June 30, 2020, and thus, the period over period
 
comparisons reflect the impact of the CCHL consolidation, which occurred
late in the first quarter 2020.
 
The table below provides an overview of CCHL’s
 
impact on our noninterest income and noninterest
expense for 2020.
 
 
Noninterest income for the second quarter of 2020 totaled
 
$30.2 million compared to $15.5 million for the first quarter of 2020 and
$12.8 million for the second quarter of 2019.
 
The increase over both periods was driven by higher mortgage banking fees
 
and other
income (loan origination fees) at CCHL, partially offset
 
by lower deposit fees (overdraft fees).
 
Deposit fees decreased $1.3 million,
or 25.1% compared to the first quarter of 2020 and reflected slower consumer
 
spending and the impact of stimulus payments in the
second quarter related to the COVID-19 pandemic.
 
 
Noninterest
 
expense for the second quarter of 2020 totaled $37.3
 
million compared to $31.0 million for the first quarter of 2020 and
$28.4 million for the second quarter of 2019.
 
The increase over the first quarter of 2020 was attributable to higher compensation
expense of $4.2 million, occupancy expense of $0.8 million,
 
and other real estate (“ORE”) expense of $1.1 million.
 
The increase in
compensation and occupancy expense was primarily due to the
 
integration of CCHL late in the first quarter of 2020.
 
We also
realized approximately $0.8
 
million in expenses in the second quarter related to SBA PPP loan
 
origination activities and pandemic
related costs.
 
Approximately $0.3 million were one-time SBA PPP expenses and the remainder
 
are pandemic related and will phase
out over time.
 
The increase in ORE expense reflected a $1.0 million gain
 
on the sale of a banking office in the first quarter
 
of 2020.
 
For the first six months of 2020, noninterest expense totaled $68.3
 
million compared to $56.6 million for the same period of 2019
with the increase driven primarily by the same aforementioned
 
factors.
 
 
Overall, CCHL contributed significantly to the improvement
 
in our efficiency ratio for the second quarter of 2020
 
.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Three Months Ended
Six Months Ended
Jun 30, 2020
Mar 31, 2020
Jun 30, 2019
Jun 30, 2020
Jun 30, 2019
(Dollars in thousands)
Core
CCBG
CCHL
Core
CCBG
CCHL
Core
CCBG
CCHL
Core
CCBG
CCHL
Core
CCBG
CCHL
Deposit Fees
$
3,756
-
$
5,015
$
-
$
4,756
$
-
$
8,771
$
-
$
9,531
$
-
Bank Card Fees
3,142
-
3,051
-
3,036
-
6,193
-
5,891
-
Wealth Management Fees
2,554
-
2,604
-
2,404
-
5,158
-
4,727
-
Mortgage Banking Fees
241
17,573
1,138
1,892
1,199
-
1,379
19,465
2,192
-
Other
 
1,147
1,786
1,459
319
1,375
-
2,606
2,105
2,981
-
Total Noninterest Income
$
10,840
$
19,359
$
13,267
$
2,211
$
12,770
$
-
$
24,107
$
21,570
$
25,322
$
-
Salaries
$
11,596
$
8,381
$
13,488
$
2,242
$
12,496
$
-
$
25,085
$
10,623
$
24,781
$
-
Other Associate Benefits
3,477
204
3,957
49
3,941
-
7,433
253
8,005
-
Total Compensation
15,073
8,585
17,445
2,291
16,437
-
32,518
10,876
32,786
-
Occupancy, Net
5,030
768
4,748
231
4,537
-
9,778
999
9,046
-
Other
 
6,599
1,248
5,797
457
7,422
-
12,396
1,705
14,762
-
Total Noninterest Expense
$
26,702
$
10,601
$
27,990
$
2,979
$
28,396
$
-
$
54,692
$
13,580
$
56,594
$
-
 
Income Taxes
 
We realized
 
income tax expense of $2.9 million (effective rate of 18
 
%) for the second quarter of 2020 compared to $1.3 million
(effective rate of 24%) for the first quarter of 2020
 
and $2.4 million (effective rate of 25%) for the second
 
quarter of 2019.
 
For the
first six months of 2020, we realized income tax expense of $4.2
 
million (effective rate of 20%) compared to $4.4 million (effective
rate of 24%) for the same period of 2019.
 
The decrease in our effective tax rate for the three and
 
six month periods ended June 30,
2020 reflected the impact of converting CCHL to a partnership for
 
tax purposes in the second quarter of 2020.
 
Absent discrete
items, we expect our annual effective tax rate to approximate
 
19%-20%.
 
 
Discussion of Financial Condition
 
Earning Assets
 
Average earning assets were
 
$3.017 billion for the second quarter of 2020,
 
an increase of $264.9
 
million, or 9.6%
 
over the first
quarter of 2020,
 
and an increase of $322.1 million, or 12.0%
 
over the fourth quarter of 2019.
 
The increase over both prior periods
was primarily driven by higher deposit balances which funded
 
growth in the loan portfolio and overnight funds sold.
 
The impact of
pandemic related stimulus programs on our balance sheet in the
 
second quarter of 2020 is discussed in further detail below.
 
 
We maintained an average
 
net overnight funds (deposits with banks plus FED funds sold less
 
FED funds purchased) sold position of
$351.5 million during the second quarter of 2020
 
compared to an average net overnight funds sold position of $234.4
 
million in the
first quarter of 2020 and $228.1 million in the fourth quarter of
 
2019.
 
The increase compared to both prior periods was primarily
driven by pandemic related stimulus programs (see below –
Funding
).
 
 
Average loans held
 
for investment (“HFI”) increased $135.2 million, or 7.3
 
%, over the first quarter of 2020 and $148.9 million, or
8.1%, over the fourth quarter of 2019.
 
Period-end HFI loans increased $159.8, or 8.6%, over the first quarter
 
of 2020 and $186.2
million, or 10.1%, over the fourth quarter of 2019.
 
Demand from the SBA PPP was strong with SBA PPP loans (reflected
 
in
commercial loans) averaging $133.8 million in the second quarter
 
of 2020 and totaling $190 million at June 30, 2020.
 
In total, we
funded 2,208 loans for $193 million under the SBA PPP,
 
all from current balance sheet liquidity.
 
To date,
 
our borrowers have
submitted a nominal level of forgiveness applications, but
 
these applications are expected to accelerate in the second half
 
of the
year.
 
We received
 
100% of our SBA PPP loan fees totaling approximately $6.3
 
million (net) late in the second quarter.
 
Amortized
SBA PPP loan fees totaled approximately $0.4 million for the second
 
quarter of 2020.
 
Allowance for Credit Losses
 
At June 30, 2020, the allowance for credit losses totaled $2
 
2.5 million compared to $21.1 million at March 31, 2020 and $13.9
million at December 31, 2019.
 
At June 30, 2020, the allowance represented 1.11% of outstanding
 
loans held for investment (HFI)
and provided coverage of 322% of nonperforming loans compared
 
to 1.13%
 
and 433%, respectively, at March
 
31, 2020 and 0.75%
and 311%, respectively,
 
at December 31, 2019.
 
At June 30, 2020, excluding SBA PPP loans (100% government guaranteed)
 
,
 
the
allowance represented 1.23% of loans held for investment.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
The adoption of ASC 326 (“CECL”) on January 1, 2020
 
had an impact of $4.0 million ($3.3 million increase in the allowance for
credit losses and $0.7 million increase in the allowance for unfunded
 
loan commitments (other liability account)).
 
The $5.7 million
build (provision of $7.0 million less net charge
 
-offs of $1.3 million) in the allowance for credit losses for
 
the first six months of
2020 reflected a higher forecasted rate of unemployment due
 
to stressed economic conditions related the COVID-19 pandemic.
 
 
Credit Quality/COVID-19 Exposure
 
Nonperforming assets (nonaccrual loans and OREO) totaled $8.0
 
million at June 30, 2020, a $1.7 million increase over March 31,
2020, and a $2.6 million increase over December 31, 2019.
 
Nonaccrual loans totaled $7.0 million at June 30, 2020,
 
a $2.1 million
increase over March 31, 2020 and a $2.5 million increase over
 
December 31, 2019.
 
The balance of OREO totaled $1.1
 
million at
June 30, 2020, a decrease of $0.4 million from March 31, 2020
 
and a $0.1 million increase over December 31, 2019.
 
We continue to analyze
 
our loan portfolio for segments that have been affected
 
by the stressed economic and business conditions
caused by the pandemic.
 
Certain at-risk segments total 8% of our loan balances at June 30,
 
2020, including hotel (3%),
 
restaurant
(1%),
 
retail and shopping centers (3%), and other (1%).
 
The other segment includes churches, non-profits, education, and
recreational.
 
To assist our clients, in mid-March
 
of 2020, we began allowing short term 60 to 90
 
day loan extensions for affected
borrowers.
 
A roll-forward of loan extension activity is provided in the table
 
below.
 
Approximately 83% of these loans were for
commercial borrowers and 17% for consumer borrowers.
 
 
% Loans Extended
At July 9, 2020
 
(Dollars in thousands)
# Loans
Loan Amount
# Loans
$ Loans
Loans Extended
2,217
$
330,406
Loans Resuming Payments
(1,708)
(234,610)
77%
71%
Loans Still on Extension
509
$
95,796
23%
29%
Still on Extension: From First Extension
382
$
60,237
17%
18%
Still on Extension: From Second Extension
127
$
35,559
6%
11%
 
Funding (Deposits/Debt)
 
Average total deposits were
 
$2.783 billion for the second quarter of 2020, an increase of $230.8
 
million, or 9.0%
 
over the first
quarter of 2020,
 
and an increase of $258.5 million, or 10.2%
 
over the fourth quarter of 2019.
 
The estimated deposit inflows, related
to the two pandemic related stimulus programs,
 
were $179 million (SBA PPP) and $64 million (Economic Impact Payment
 
stimulus
checks).
 
Period end deposit balances grew $409 million and $310
 
million over the first quarter of 2020 and fourth quarter of 2019,
respectively, indicating strong
 
growth in core deposit balances.
 
Given these large increases, the potential exists for
 
our deposit
levels to be volatile over the coming quarters due to the uncertain
 
timing of the outflows of the stimulus related deposits and the
economic recovery.
 
It is anticipated that current liquidity levels will remain robu
 
st due to our strong overnight funds sold position,
in addition to cash flow generated from the investment portfolio.
 
We monitor deposit
 
rates on an ongoing basis and adjust if
necessary, as a prudent pricing
 
discipline remains the key to managing our mix of deposits.
 
Average borrowings
 
increased $39.9 million over the first quarter of 20
 
20 and $65.0 million over the fourth quarter of 2019
 
as
short-term borrowings (warehouse lines used to support HFS loans)
 
were added as part of the CCHL integration.
 
 
Capital
 
Shareowners’ equity was $335.1 million at June 30, 2020
 
compared to $328.5 million at March
 
31, 2020 and $327.0 million at
December 31, 2019.
 
For the first six months of 2020, shareowners’ equity was positively impacted
 
by net income of $13.4 million,
a $3.0 million increase in the unrealized gain on investment securities,
 
net adjustments totaling $0.7
 
million related to transactions
under our stock compensation
 
plans, and stock compensation accretion of $0.4
 
million.
 
Shareowners’ equity was reduced by
common stock dividends of $4.7 million ($0.28 per share),
 
a $3.1 million (net of tax) adjustment to retained earnings for
 
the
adoption of ASC 326 (“CECL”), and share repurchases of $1.6
 
million (76,952 shares).
 
At June 30, 2020, our total risk-based capital ratio was 17.81
 
%
 
compared to 17.19% at March 31, 2020 and 17.90% at December
31, 2019.
 
Our common equity tier 1 capital ratio was 14.21%, 13.55%, and 14.47%,
 
respectively, on these dates.
 
Our leverage ratio
was 10.24%, 10.81%, and 11.25%, respectively,
 
on these dates.
 
All of our regulatory capital ratios exceeded the threshold
 
to be
designated as “well-capitalized” under the Basel III capital
 
standards.
 
Further, our tangible common equity ratio
 
was 7.21%
 
at June
30, 2020 compared to 7.98% and 8.06%
 
at March 31, 2020 and December 31, 2019,
 
respectively.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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
 
$3.5 billion in assets.
 
We provide
 
a full range of banking services, including traditional deposit
and credit services, mortgage banking, asset management, trust, merchant
 
services, bankcards and securities brokerage services.
 
Our bank subsidiary, Capital City
 
Bank, was founded in 1895 and now has 57 banking offices
 
and 85 ATMs
 
/ITMs 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 our future results to differ materially.
 
The following factors, among others, could cause our actual results to
differ: the magnitude and duration of the COVID
 
-19 pandemic and its impact on the global economy and financial market
 
conditions
and our business, results of operations and financial condition, including
 
the impact of our participation in government programs
related to COVID-19; the accuracy of the our financial statement
 
estimates and assumptions; legislative or regulatory changes;
fluctuations in inflation, interest rates, or monetary policies; the effects
 
of security breaches and computer viruses that may affect
 
our
computer systems or fraud related to debit card products; changes
 
in consumer spending and savings habits; our growth and
profitability; the strength of the U.S. economy and the local economies
 
where we conduct operations; the effects of a non-diversified
loan portfolio, including the risks of geographic and industry
 
concentrations; natural disasters, widespread health emergencies,
military conflict, terrorism or other geopolitical events; 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; 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 our ability to manage the
 
risks involved in the foregoing.
 
Additional factors can be found in our
Annual Report on Form 10-K for the fiscal year ended December 31,
 
2019, and our 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 we assume no obligation to update forward
 
-looking statements or the reasons why actual results could differ.
 
USE OF NON-GAAP FINANCIAL MEASURES
 
We present a
 
tangible common equity ratio and a tangible book value per diluted share
 
that removes the effect of goodwill resulting
from merger and acquisition activity.
 
We believe these
 
measures are useful to investors because it allows investors to more
 
easily
compare our capital adequacy to other companies in the industry.
 
 
The GAAP to non-GAAP reconciliations are provided below.
 
(Dollars in Thousands, except per share data)
Jun 30, 2020
Mar 31, 2020
Dec 31, 2019
Sep 30, 2019
Jun 30, 2019
Shareowners' Equity (GAAP)
$
335,057
$
328,507
$
327,016
$
321,562
$
314,595
Less: Goodwill (GAAP)
89,095
89,275
84,811
84,811
84,811
Tangible Shareowners' Equity (non-GAAP)
A
245,962
239,232
242,205
236,751
229,784
Total Assets (GAAP)
3,499,524
3,086,523
3,088,953
2,934,513
3,017,654
Less: Goodwill (GAAP)
89,095
89,275
84,811
84,811
84,811
Tangible Assets (non-GAAP)
B
$
3,410,429
$
2,997,248
$
3,004,142
$
2,849,702
$
2,932,843
Tangible Common Equity Ratio (non-GAAP)
A/B
7.21%
7.98%
8.06%
8.31%
7.83%
Actual Diluted Shares Outstanding (GAAP)
C
16,821,743
16,845,462
16,855,161
16,797,241
16,773,449
Tangible Book Value
 
per Diluted Share (non-GAAP)
A/C
$
14.62
$
14.20
$
14.37
$
14.09
$
13.70
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
CAPITAL CITY BANK
 
GROUP,
 
INC.
EARNINGS HIGHLIGHTS
Unaudited
Three Months Ended
Six Months Ended
(Dollars in thousands, except per share data)
Jun 30, 2020
Mar 31, 2020
Jun 30, 2019
Jun 30, 2020
Jun 30, 2019
EARNINGS
Net Income Attributable to Common Shareowners
$
9,146
$
4,287
$
7,325
$
13,433
$
13,761
Diluted Net Income Per Share
$
0.55
$
0.25
$
0.44
$
0.80
$
0.82
PERFORMANCE
Return on Average Assets
1.10%
0.57%
0.98%
0.85%
0.92%
Return on Average Equity
11.03%
5.20%
9.37%
8.12%
8.94%
Net Interest Margin
3.41%
3.78%
3.85%
3.59%
3.80%
Noninterest Income as % of Operating Revenue
54.26%
37.52%
32.95%
47.13%
33.23%
Efficiency Ratio
66.90%
74.89%
73.02%
70.30%
74.00%
CAPITAL ADEQUACY
Tier 1 Capital
 
16.79%
16.12%
16.36%
16.79%
16.36%
Total Capital
 
17.81%
17.19%
17.13%
17.81%
17.13%
Leverage
 
10.24%
10.81%
10.64%
10.24%
10.64%
Common Equity Tier 1
14.21%
13.55%
13.67%
14.21%
13.67%
Tangible Common Equity
(1)
7.21%
7.98%
7.83%
7.21%
7.83%
Equity to Assets
9.57%
10.64%
10.43%
9.57%
10.43%
ASSET QUALITY
Allowance as % of Non-Performing Loans
322.37%
432.61%
259.55%
322.37%
259.55%
Allowance as a % of Loans
1.11%
1.13%
0.79%
1.11%
0.79%
Net Charge-Offs as % of Average Loans
0.05%
0.23%
0.04%
0.14%
0.12%
Nonperforming Assets as % of Loans and OREO
0.40%
0.34%
0.36%
0.40%
0.36%
Nonperforming Assets as % of Total Assets
0.23%
0.21%
0.22%
0.23%
0.22%
STOCK PERFORMANCE
High
 
$
23.99
$
30.62
$
25.00
$
30.62
$
25.87
Low
16.16
15.61
21.57
15.61
21.04
Close
$
20.95
$
20.12
$
24.85
$
20.95
$
24.85
Average Daily Trading Volume
49,569
40,536
24,258
45,089
21,380
(1)
 
Tangible common equity ratio is a non-GAAP financial measure.
 
For additional information, including a reconciliation to GAAP, refer to
 
page 5.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
CAPITAL CITY BANK GROUP, INC.
CONSOLIDATED STATEMENT
 
OF FINANCIAL CONDITION
Unaudited
2020
2019
(Dollars in thousands)
Second Quarter
First Quarter
Fourth Quarter
Third Quarter
Second Quarter
ASSETS
Cash and Due From Banks
$
75,155
$
72,676
$
60,087
$
61,151
$
53,731
Funds Sold and Interest Bearing Deposits
513,273
196,936
318,336
177,389
234,097
Total Cash and Cash Equivalents
588,428
269,612
378,423
238,540
287,828
Investment Securities Available for Sale
341,180
382,514
403,601
376,981
410,851
Investment Securities Held to Maturity
232,178
251,792
239,539
240,303
229,516
 
Total Investment Securities
573,358
634,306
643,140
617,284
640,367
Loans Held for Sale ("HFS")
76,610
82,598
9,509
13,075
9,885
Loans Held for Investment ("HFI")
Commercial, Financial, & Agricultural
421,270
249,020
255,365
259,870
265,001
Real Estate - Construction
117,794
122,595
115,018
111,358
101,372
Real Estate - Commercial
662,434
656,084
625,556
610,726
614,618
Real Estate - Residential
353,831
354,150
353,642
354,545
349,843
Real Estate - Home Equity
194,479
196,443
197,360
197,326
201,579
Consumer
266,417
275,982
279,565
277,970
288,196
Other Loans
4,883
6,580
7,808
14,248
13,131
Overdrafts
1,069
1,533
1,615
1,710
1,442
Total Loans Held for Investment
2,022,177
1,862,387
1,835,929
1,827,753
1,835,182
Allowance for Loan Losses
(22,457)
(21,083)
(13,905)
(14,319)
(14,593)
Loans Held for Investment, Net
1,999,720
1,841,304
1,822,024
1,813,434
1,820,589
Premises and Equipment, Net
87,972
87,684
84,543
85,810
86,005
Goodwill
89,095
89,275
84,811
84,811
84,811
Other Real Estate Owned
1,059
1,463
953
526
1,010
Other Assets
83,282
80,281
65,550
81,033
87,159
Total Other Assets
261,408
258,703
235,857
252,180
258,985
Total Assets
$
3,499,524
$
3,086,523
$
3,088,953
$
2,934,513
$
3,017,654
LIABILITIES
Deposits:
Noninterest Bearing Deposits
$
1,377,033
$
1,066,607
$
1,044,699
$
1,022,774
$
1,024,898
NOW Accounts
808,244
779,467
902,499
728,395
810,568
Money Market Accounts
240,754
210,124
217,839
239,410
240,181
Regular Savings Accounts
423,924
384,480
374,396
372,601
371,773
Certificates of Deposit
105,041
104,907
106,021
109,827
113,684
Total Deposits
2,954,996
2,545,585
2,645,454
2,473,007
2,561,104
Short-Term Borrowings
63,958
76,516
6,404
10,622
9,753
Subordinated Notes Payable
52,887
52,887
52,887
52,887
52,887
Other Long-Term Borrowings
5,583
5,896
6,514
6,963
7,313
Other Liabilities
75,702
70,044
50,678
69,472
72,002
Total Liabilities
3,153,126
2,750,928
2,761,937
2,612,951
2,703,059
Temporary Equity
11,341
7,088
-
-
-
SHAREOWNERS' EQUITY
Common Stock
168
168
168
167
167
Additional Paid-In Capital
31,575
32,100
32,092
31,075
30,751
Retained Earnings
328,570
321,772
322,937
316,551
310,247
Accumulated Other Comprehensive Loss, Net of Tax
(25,256)
(25,533)
(28,181)
(26,231)
(26,570)
Total Shareowners' Equity
335,057
328,507
327,016
321,562
314,595
Total Liabilities, Temporary Equity and Shareowners' Equity
$
3,499,524
$
3,086,523
$
3,088,953
$
2,934,513
$
3,017,654
OTHER BALANCE SHEET DATA
Earning Assets
$
3,185,418
$
2,776,228
$
2,806,913
$
2,635,501
$
2,719,530
Interest Bearing Liabilities
1,700,391
1,614,277
1,666,560
1,520,705
1,606,159
Book Value Per Diluted Share
$
19.92
$
19.50
$
19.40
$
19.14
$
18.76
Tangible Book Value
 
Per Diluted Share
(1)
14.62
14.20
14.37
14.09
13.70
Actual Basic Shares Outstanding
16,780
16,812
16,772
16,749
16,746
Actual Diluted Shares Outstanding
16,822
16,845
16,855
16,797
16,773
(1)
 
Tangible book value per diluted share is a non-GAAP financial measure.
 
For additional information, including a reconciliation to GAAP, refer to page 5.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
CAPITAL CITY BANK
 
GROUP,
 
INC.
CONSOLIDATED STATEMENT
 
OF OPERATIONS
Unaudited
Six Months Ended
2020
2019
Jun 30,
(Dollars in thousands, except per share data)
Second
Quarter
First
Quarter
Fourth
Quarter
Third
Quarter
Second
Quarter
2020
2019
INTEREST INCOME
Interest and Fees on Loans
$
23,687
$
23,593
$
23,842
$
23,992
$
23,765
$
47,280
$
46,381
Investment Securities
2,737
3,015
3,221
3,307
3,393
5,752
6,906
Funds Sold
88
757
945
1,142
1,507
845
3,100
Total Interest Income
26,512
27,365
28,008
28,441
28,665
53,877
56,387
INTEREST EXPENSE
Deposits
218
939
1,157
1,596
1,988
1,157
4,087
Short-Term Borrowings
421
132
16
27
31
553
66
Subordinated Notes Payable
374
471
525
558
596
845
1,204
Other Long-Term Borrowings
41
50
56
63
66
91
138
Total Interest Expense
1,054
1,592
1,754
2,244
2,681
2,646
5,495
Net Interest Income
25,458
25,773
26,254
26,197
25,984
51,231
50,892
Provision for Credit Losses
2,005
4,990
(162)
776
646
6,995
1,413
Net Interest Income after Provision for
 
Loan Losses
23,453
20,783
26,416
25,421
25,338
44,236
49,479
NONINTEREST INCOME
Deposit Fees
3,756
5,015
4,980
4,961
4,756
8,771
9,531
Bank Card Fees
3,142
3,051
3,131
2,972
3,036
6,193
5,891
Wealth Management Fees
2,554
2,604
2,761
2,992
2,404
5,158
4,727
Mortgage Banking Fees
17,814
3,030
1,542
1,587
1,199
20,844
2,192
Other
 
2,933
1,778
1,414
1,391
1,375
4,711
2,981
Total Noninterest Income
30,199
15,478
13,828
13,903
12,770
45,677
25,322
NONINTEREST EXPENSE
Compensation
23,658
19,736
17,363
16,203
16,437
43,394
32,786
Occupancy, Net
5,798
4,979
4,680
4,710
4,537
10,777
9,046
Other Real Estate, Net
116
(798)
102
6
75
(682)
438
Other
 
7,731
7,052
6,997
6,954
7,347
14,783
14,324
Total Noninterest Expense
37,303
30,969
29,142
27,873
28,396
68,272
56,594
OPERATING PROFIT
16,349
5,292
11,102
11,451
9,712
21,641
18,207
Income Tax Expense
2,950
1,282
2,537
2,970
2,387
4,232
4,446
Net Income
13,399
4,010
8,565
8,481
7,325
17,409
13,761
(Gain) Loss Attributable to Noncontrolling Interest
(4,253)
277
-
-
-
(3,976)
-
NET INCOME ATTRIBUTABLE
 
TO
 
COMMON SHAREOWNERS
$
9,146
$
4,287
$
8,565
$
8,481
$
7,325
$
13,433
$
13,761
PER COMMON SHARE
Basic Net Income
$
0.55
$
0.25
$
0.51
$
0.51
$
0.44
$
0.80
$
0.82
Diluted Net Income
0.55
0.25
0.51
0.50
0.44
0.80
0.82
Cash Dividend
 
$
0.14
$
0.14
$
0.13
$
0.13
$
0.11
$
0.28
$
0.22
AVERAGE
 
SHARES
Basic
 
16,797
16,808
16,750
16,747
16,791
16,803
16,791
Diluted
 
16,839
16,842
16,834
16,795
16,818
16,844
16,820
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
CAPITAL CITY BANK GROUP,
 
INC.
ALLOWANCE FOR CREDIT LOSSES
 
AND RISK ELEMENT ASSETS
Unaudited
Six Months Ended
2020
2019
Jun 30,
(Dollars in thousands, except per share data)
Second
Quarter
First
Quarter
Fourth
Quarter
Third
Quarter
Second
Quarter
2020
2019
ALLOWANCE FOR CREDIT LOSSES
Balance at Beginning of Period
$
21,083
$
13,905
$
14,319
$
14,593
$
14,120
$
13,905
$
14,210
Impact of Adopting ASC 326 (CECL)
-
3,269
-
-
-
3,269
-
Provision for Credit Losses - HFI
1,615
4,990
(162)
776
646
6,605
1,413
Net Charge-Offs
241
1,081
252
1,050
173
1,322
1,030
Balance at End of Period
(2)
$
22,457
$
21,083
$
13,905
$
14,319
$
14,593
$
22,457
$
15,623
As a % of Loans
1.11%
1.13%
0.75%
0.78%
0.79%
1.11%
0.79%
As a % of Nonperforming Loans
322.37%
432.61%
310.99%
290.55%
259.55%
322.37%
259.55%
CHARGE-OFFS
Commercial, Financial and Agricultural
$
186
$
362
$
149
$
289
$
235
$
548
$
330
Real Estate - Construction
-
-
58
223
-
-
-
Real Estate - Commercial
-
11
33
26
-
11
155
Real Estate - Residential
1
110
27
44
65
111
329
Real Estate - Home Equity
52
31
0
333
45
83
97
Consumer
634
864
819
744
520
1,498
1,315
Overdrafts
(3)
541
702
-
-
-
1,243
-
Total Charge-Offs
$
1,414
$
2,080
$
1,086
$
1,659
$
865
$
3,494
$
2,226
RECOVERIES
Commercial, Financial and Agricultural
$
74
$
40
$
127
$
86
$
58
$
114
$
132
Real Estate - Construction
-
-
-
-
-
-
-
Real Estate - Commercial
70
191
266
142
100
261
170
Real Estate - Residential
51
40
116
46
223
91
267
Real Estate - Home Equity
64
33
25
58
60
97
92
Consumer
365
268
300
277
251
633
535
Overdrafts
(3)
549
427
-
-
-
976
-
Total Recoveries
$
1,173
$
999
$
834
$
609
$
692
$
2,172
$
1,196
NET CHARGE-OFFS
$
241
$
1,081
$
252
$
1,050
$
173
$
1,322
$
1,030
Net Charge-Offs as a % of Average Loans
(1)
0.05%
0.23%
0.05%
0.23%
0.04%
0.14%
0.12%
RISK ELEMENT ASSETS
Nonaccruing Loans
$
6,966
$
4,874
$
4,472
$
4,928
$
5,622
Other Real Estate Owned
1,059
1,463
953
526
1,010
Total Nonperforming Assets ("NPAs")
$
8,025
$
6,337
$
5,425
$
5,454
$
6,632
Past Due Loans 30-89 Days
 
$
2,948
$
5,077
$
4,871
$
5,120
$
5,443
Past Due Loans 90 Days or More
-
-
-
-
-
Classified Loans
17,091
16,548
20,847
21,323
26,406
Performing Troubled Debt Restructuring's
$
15,133
$
15,934
$
16,888
$
18,284
$
18,737
Nonperforming Loans as a % of Loans
0.34%
0.26%
0.24%
0.27%
0.30%
NPAs as a % of Loans and Other Real Estate
0.40%
0.34%
0.29%
0.30%
0.36%
NPAs as a % of
 
Total Assets
0.23%
0.21%
0.18%
0.19%
0.22%
(1)
 
Annualized
(2)
 
Does not include $1.4 million for unfunded commitments recorded in other liabilities
(3)
 
Prior to the first quarter 2020, overdraft losses were reflected in
 
noninterest income (deposit fees)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
CAPITAL CITY BANK GROUP,
 
INC.
AVERAGE
 
BALANCE AND INTEREST RATES
(1)
Unaudited
Second Quarter 2020
First Quarter 2020
Fourth Quarter 2019
Third Quarter 2019
Second Quarter 2019
Jun 2020 YTD
Jun 2019 YTD
(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
Average
Balance
Interest
Average
Rate
Average
Balance
Interest
Average
Rate
ASSETS:
Loans HFI and HFS
$
2,057,925
$
23,785
4.65
%
$
1,882,703
$
23,692
5.06
%
$
1,846,190
$
23,958
5.15
%
$
1,837,548
24,113
5.21
%
$
1,823,311
$
23,873
5.25
%
$
1,970,551
$
47,477
4.85
%
$
1,801,977
$
46,591
5.21
%
Investment Securities
Taxable Investment Securities
601,509
2,708
1.80
629,512
2,995
1.91
610,046
3,186
2.08
607,363
3,249
2.13
614,775
3,301
2.15
615,511
5,703
1.86
616,442
6,688
2.18
Tax-Exempt Investment Securities
5,865
37
2.51
5,293
25
1.86
10,327
43
1.67
18,041
73
1.63
29,342
116
1.58
5,579
62
2.20
34,928
274
1.57
Total Investment Securities
607,374
2,745
1.81
634,805
3,020
1.91
620,373
3,229
2.08
625,404
3,322
2.12
644,117
3,417
2.12
621,090
5,765
1.86
651,370
6,962
2.14
Funds Sold
351,473
88
0.10
234,372
757
1.30
228,137
945
1.64
207,129
1,142
2.19
251,789
1,507
2.40
292,922
845
0.58
258,703
3,100
2.42
Total Earning Assets
3,016,772
$
26,618
3.55
%
2,751,880
$
27,469
4.01
%
2,694,700
$
28,132
4.14
%
2,670,081
$
28,577
4.25
%
2,719,217
$
28,797
4.25
%
2,884,563
$
54,087
3.77
%
2,712,050
$
56,653
4.21
%
Cash and Due From Banks
72,647
56,958
53,174
50,981
51,832
64,802
52,834
Allowance for Loan Losses
(21,642)
(14,389)
(14,759)
(14,863)
(14,513)
(18,015)
(14,431)
Other Assets
261,449
244,339
249,089
253,111
254,126
252,657
253,173
Total Assets
$
3,329,226
$
3,038,788
$
2,982,204
$
2,959,310
$
3,010,662
$
3,184,007
$
3,003,626
LIABILITIES:
Interest Bearing Deposits
NOW Accounts
$
789,378
$
78
0.04
%
$
808,811
$
725
0.36
%
$
755,625
$
889
0.47
%
$
749,678
$
1,235
0.65
%
$
832,982
$
1,623
0.78
%
$
799,094
$
803
0.20
%
$
858,488
$
3,378
0.79
%
Money Market Accounts
222,377
40
0.07
212,211
117
0.22
227,479
170
0.30
238,565
264
0.44
237,921
265
0.45
217,295
157
0.15
238,714
512
0.43
Savings Accounts
409,366
50
0.05
379,237
46
0.05
372,518
46
0.05
372,593
46
0.05
371,716
46
0.05
394,301
96
0.05
368,268
90
0.05
Time Deposits
104,718
50
0.19
105,542
51
0.19
108,407
52
0.19
111,447
51
0.18
115,442
54
0.19
105,130
101
0.19
117,131
107
0.18
Total Interest Bearing Deposits
1,525,839
218
0.06
%
1,505,801
939
0.25
%
1,464,029
1,157
0.31
%
1,472,283
1,596
0.43
%
1,558,061
1,988
0.51
%
1,515,820
1,157
0.15
%
1,582,601
4,087
0.52
%
Short-Term Borrowings
73,377
421
2.31
%
32,915
132
1.61
%
7,448
16
0.87
%
8,697
27
1.24
%
9,625
31
1.30
%
53,146
553
2.09
%
10,497
66
1.28
%
Subordinated Notes Payable
52,887
374
2.80
52,887
471
3.52
52,887
525
3.88
52,887
558
4.13
52,887
596
4.46
52,887
845
3.16
52,887
1,204
4.53
Other Long-Term Borrowings
5,766
41
2.84
6,312
50
3.21
6,723
56
3.33
7,158
63
3.47
7,509
66
3.53
6,039
91
3.03
7,853
138
3.54
Total Interest Bearing Liabilities
1,657,869
$
1,054
0.26
%
1,597,915
$
1,592
0.40
%
1,531,087
$
1,754
0.45
%
1,541,025
$
2,244
0.58
%
1,628,082
$
2,681
0.66
%
1,627,892
$
2,646
0.33
%
1,653,838
$
5,495
0.67
%
Noninterest Bearing Deposits
1,257,614
1,046,889
1,060,922
1,023,472
1,007,370
1,152,251
982,473
Other Liabilities
72,073
59,587
63,291
74,540
61,611
65,830
56,867
Total Liabilities
2,987,556
2,704,391
2,655,300
2,639,037
2,697,063
2,845,973
2,693,178
Temporary Equity
8,155
2,506.00
-
-
-
5,331
-
SHAREOWNERS' EQUITY:
333,515
331,891
326,904
320,273
313,599
332,703
310,448
Total Liabilities, Temporary
 
Equity and
Shareowners' Equity
$
3,329,226
$
3,038,788
$
2,982,204
$
2,959,310
$
3,010,662
$
3,184,007
$
3,003,626
Interest Rate Spread
$
25,564
3.30
%
$
25,877
3.61
%
$
26,378
3.69
%
$
26,333
3.67
%
$
26,116
3.59
%
$
51,441
3.44
%
$
51,158
3.54
%
Interest Income and Rate Earned
(1)
26,618
3.55
27,469
4.01
28,132
4.14
28,577
4.25
28,797
4.25
54,087
3.77
56,653
4.21
Interest Expense and Rate Paid
(2)
1,054
0.14
1,592
0.23
1,754
0.26
2,244
0.33
2,681
0.40
2,646
0.18
5,495
0.41
Net Interest Margin
$
25,564
3.41
%
$
25,877
3.78
%
$
26,378
3.89
%
$
26,333
3.92
%
$
26,116
3.85
%
$
51,441
3.59
%
$
51,158
3.80
%
(1)
 
Interest and average rates are calculated
 
on a tax-equivalent basis using a 21% Federal tax rate.
(2)
 
Rate calculated based on average earning assets.