Capital City Bank Group, Inc.
 
Reports First Quarter 2021 Results
 
TALLAHASSEE,
 
Fla. (April 27, 2021) –Capital City Bank Group,
 
Inc. (NASDAQ: CCBG) today reported net income of $9.5
million, or $0.56 per diluted share, for the first quarter
 
of 2021 compared to net income of $7.7
 
million, or $0.46 per diluted share,
for the fourth quarter of 2020, and $4.3 million, or
 
$0.25 per diluted share,
 
for the first quarter of 2020.
 
 
QUARTER HIGHLIGHTS
 
Return on assets of 1.01% and return
 
on equity of 11.81%
 
 
Credit quality metrics remained
 
stable and reduced COVID-19 exposure
 
drove a negative credit
 
loss provision of $1.0 million
 
 
Period-end loan balances grew by $51
 
million, or 2.6% sequentially
-
 
SBA PPP Round 2 originations totaled $65 million through
 
March 31
st
 
-
 
SBA PPP Round 1 forgiveness pay
 
-offs totaled $36 million - $143 million in balances remain
 
at period-end
-
 
SBA PPP deferred fees remaining
 
at March 31
st
 
totaled $5 million ($2
 
million for Round 1 and $3 million for Round 2)
 
Average deposit bala
 
nces grew $173 million, or 5.7% sequentially
 
and reflected stimulus inflows as well as strong
 
core deposit
growth
 
Noninterest expense declined $0.9
 
million driven by lower expense for other real
 
estate and compensation
 
Capital City Home Loans (“CCHL”) contributed $0.09
 
per share
 
“I am pleased with our first quarter results,” said William
 
G. Smith, Jr., Chairman,
 
President and CEO of Capital City Bank
Group.
 
“Rising consumer spending, lower unemployment, improving
 
credit quality and a noticeable increase in loan activity in and
around our markets, are contributing to a stronger economy.
 
Our core business is performing well.
 
In addition to round two of the
SBA PPP loans, we experienced solid growth in commercial real
 
estate and residential loans, culminating in net loan growth of
 
$51
million, or 2.6% for the quarter.
 
Wealth management,
 
mortgage and debit/credit cards performed well.
 
Expenses declined $0.9
million, or 2% quarter over quarter.
 
After evaluating our credit risk, we lowered our allowance for credit
 
losses by $1.8 million, or
8%.
 
This was based on our current level of problem assets and pandemic
 
-related extensions, a $0.5 million net recovery for the
quarter and our positive outlook on the economy.
 
The past year has been challenging.
 
Our team has responded to every challenge
and we have tweaked our business model,
 
where appropriate.
 
While our tactics may change, our strategy remains the
 
same -- to
produce long-term value for our shareowners.
 
I am optimistic about our future.”
 
 
COVID-19 Update
 
 
We continue
 
to closely monitor conditions in our communities.
 
With case counts trending downward
 
in most of our markets, we
established a phased plan for safely returning to work beginning
 
February 1st.
 
On March 1
st
, all of our banking offices returned to normal banking
 
hours and lobby services.
 
For the near term, we will continue to maintain
 
flexible in-office and remote working arrangements
 
for non-retail associates to
limit building capacity.
 
We are adher
 
ing to national guidelines and local safety ordinances to protect
 
both clients and associates.
 
We continue
 
to support clients with the Small Business Administration Payment
 
Protection Program (“SBA PPP”) by actively
assisting with the Round 1 forgiveness process and
 
offering funding for clients eligible in Round
 
2.
 
Discussion of Operating Results
 
Summary Overview
 
Compared to the fourth quarter of 2020, the $2.0 million
 
increase in operating profit was attributable to a $2.3
 
million decrease in the
provision for credit losses and lower noninterest expense
 
of $0.9 million, partially offset by a $0.7 million
 
decrease in noninterest
income and lower net interest income of $0.5 million.
 
Compared to the first quarter of 2020,
 
the $9.5 million increase in operating profit was attributable to a
 
$14.3 million increase in
noninterest
 
income and a lower provision for credit losses of $6.0 million,
 
partially offset by higher noninterest expense of $9.5
million and lower net interest income of $1.3 million.
 
This comparison reflects the acquisition of a 51% membership
 
interest in, and
consolidation of, CCHL on March 1, 2020.
 
Our return on average assets (“ROA”) was 1.01%
 
and our return on average equity (“ROE”) was 11
 
.81%
 
for the first quarter of
2021.
 
These metrics were 0.84% and 8.97%
 
for the fourth quarter of 2020,
 
respectively, and 0.57%
 
and 5.20% for the first quarter
of 2020,
 
respectively.
 
 
 
2
Net Interest Income/Net Interest
 
Margin
 
Tax-equivalent
 
net interest income for the first quarter of 2021 was $24.6 million
 
compared to $25.1 million for the fourth quarter of
2020 and $25.9 million for the first quarter of 2020.
 
The decrease compared to both prior periods reflected lower
 
rates earned on
investment securities and variable/adjustable rate loans.
 
The year-over-year decline also reflected lower rates on overnight
 
funds.
 
Partially offsetting these declines were higher volumes
 
of earning assets, including lower yielding SBA PPP loans and
 
overnight
funds.
 
 
The federal funds target rate has remained
 
in the range of 0.00%-0.25% since March 2020 when the Fed
 
reduced its overnight rate
by 150 basis points, and as a result, we continue to
 
experience lower repricing of our variable/adjustable rate earning
 
assets and
investment securities.
 
Our overall cost of funds remained low during the first
 
quarter of 2021 at 0.11%, a decrease of three
 
basis
points
 
compared to the fourth quarter of 2020, primarily due to a
 
reduction in short-term borrowings.
 
 
Our net interest margin for the first quarter
 
of 2021 was 2.85%, a decrease of 15 basis points from
 
the fourth quarter of 2020 and a
decline of 93 basis points from the first quarter of 2020
 
.
 
The decreases
 
were primarily attributable to significant growth in overnight
funds which reduced our margin.
 
Our net interest margin for the first quarter of 2021,
 
excluding the impact of overnight funds in
excess of $200 million, was 3.45%.
 
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
 
 
We recorded
 
a negative provision for credit losses of $1.0 million (consisting of
 
a negative $2.3 million for HFI loans, partially
offset by a $1.3 million expense for unfunded
 
loan commitments) for the first quarter of 2021 compared to
 
provision expense of
$1.3
 
million for the fourth quarter of 2020 and $5.0 million for the first
 
quarter of 2020.
 
The negative provision for the first quarter
of 2021 generally reflected improving economic conditions
 
and a lower level of expected losses related to COVID-19.
 
Further, we
recognized net loan recoveries of $0.5 million in the
 
first quarter of 2021.
 
We discuss the allowance
 
for credit losses and COVID-
19 exposure further below.
 
Noninterest Income and Noninterest
 
Expense
 
Noninterest income for the first quarter of 2021 totaled
 
$29.8 million compared to $30.5 million for the fourth
 
quarter of 2020 and
$15.5 million for the first quarter of 2020.
 
The decrease from the fourth quarter of 2020 was due to lower mortgage
 
banking
revenues of $0.6 million and deposit of $0.4 million, partially
 
offset by higher bank card fees of $0.2 million
 
and other income of
$0.1 million.
 
Compared to the first quarter of 2020, the $14.3 million increase
 
reflected higher mortgage banking revenues of $13.9
million,
 
wealth management fees of $0.5 million, and bank card
 
fees of $0.6 million, partially offset by lower deposit fees of
 
$0.7
million.
 
 
Noninterest expense for the first quarter of 2021 totaled
 
$40.5 million compared to $41.3 million for the fourth
 
quarter of 2020 and
$31.0 million for the first quarter of 2020.
 
The decrease from the fourth quarter of 2020 was primarily attributable
 
to lower
compensation expense of $0.6 million and other real estate owned
 
(“OREO”) expense of $0.7 million,
 
partially offset by higher
other expense of $0.5 million.
 
Compared to the first quarter of 2020, the $9.5 million
 
increase reflected expenses added by the
CCHL acquisition as Core CCBG’s
 
expenses remained flat.
 
 
The 51% ownership acquisition of CCHL and consolidation
 
into CCBG’s financial statements
 
occurred on March 1, 2020.
 
The
table below reflects the major components of noninterest
 
income and noninterest expense for both Core CCBG and CCHL
 
to help
facilitate a better understanding of the year over year
 
comparison.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
3
Three Months Ended
Mar 31, 2021
Dec 31, 2020
Mar 31, 2020
(Dollars in thousands)
Core
CCBG
CCHL
Core
CCBG
CCHL
Core
CCBG
CCHL
Deposit Fees
$
4,271
-
$
4,713
$
-
$
5,015
$
-
Bank Card Fees
3,618
-
3,462
-
3,051
-
Wealth Management Fees
3,090
-
3,069
-
2,604
-
Mortgage Banking Fees
279
16,846
302
17,409
1,138
2,115
Other
 
1,296
426
1,205
363
1,459
96
Total Noninterest Income
$
12,554
$
17,272
$
12,751
$
17,772
$
13,267
$
2,211
Salaries
$
12,171
$
10,276
$
12,384
$
10,398
$
13,488
$
2,242
Other Associate Benefits
3,396
221
3,740
200
3,957
49
Total Compensation
15,567
10,497
16,124
10,598
17,445
2,291
Occupancy, Net
5,106
861
5,056
920
4,748
231
Other
 
7,344
1,101
6,899
1,751
5,797
457
Total Noninterest Expense
$
28,017
$
12,459
$
28,079
$
13,269
$
27,990
$
2,979
Income Taxes
 
We realized income
 
tax expense of $2.8 million (effective rate of 19
 
%) for the first quarter of 2021 compared to $2.8 million
(effective rate of 22%) for the fourth quarter
 
of 2020 and $1.3 million (effective rate of 24%) for the
 
first quarter of 2020.
 
Tax
expense for the fourth quarter of 2020 was unfavorably
 
impacted by a $0.3 million discrete tax expense.
 
Compared to the first
quarter of 2020, the decrease in our effective
 
tax rate was attributable to 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 18%-19% in 2021.
 
 
Discussion of Financial Condition
 
Earning Assets
 
Average earning
 
assets were $3.498 billion for the first quarter of 2021, an
 
increase of $160.5 million, or 4.8%, over the fourth
quarter of 2020, and an increase of $746.0 million,
 
or 27.1%, over the first quarter of 2020.
 
The increase over both prior periods
was primarily driven by higher deposit balances, which funded
 
growth in both overnight funds sold and SBA PPP loans.
 
Deposit
balances increased as a result of strong core deposit growth,
 
in addition to funding retained at the bank from SBA PPP loans,
 
and
various other stimulus programs.
 
 
We maintained
 
an average net overnight funds (deposits with banks plus FED funds
 
sold less FED funds purchased) sold position of
$814.6 million in the first quarter of 2021 compared to
 
an average net overnight funds sold position of $705.1 million
 
in the fourth
quarter of 2020 and $234.4 million in the first quarter
 
of 2020.
 
The increase compared to both prior periods was driven by strong
core deposit growth, in addition to pandemic related stimulus
 
programs (see below –
Funding
).
 
 
Average loans
 
held for investment (HFI) increased $50.9 million, or 2.6%, over
 
the fourth quarter of 2020 and increased $196.6
million, or 10.6%, over the first quarter of 2020.
 
Compared to the fourth quarter of 2020, average loan balances
 
increased across all
loan types except institutional and consumer,
 
which declined slightly.
 
Compared to the first quarter of 2020, average loan balances
increased across all loan types except institutional, consumer,
 
and HELOCs.
 
Period-end HFI loans increased $51.3 million, or
2.6%, over the fourth quarter of 2020 and increased $195.3
 
million, or 10.5%, over the first quarter of 2020.
 
In the first quarter of 2021,
 
we originated an additional round of SBA PPP loans totaling
 
$65.4 million (reflected in the commercial
loan category) which averaged $23.7 million for the quarter.
 
Approximately $256 million in SBA PPP loans have been made
 
since
the inception of this program.
 
Through the first quarter of 2021, approximately $47
 
million in SBA PPP loans have been forgiven
and paid-off ($11 million
 
in Q4 2020 and $36 million in Q1 2021).
 
Forgiveness applications are expected to remain strong
 
over the
next three months for SBA PPP loans funded in 2020,
 
and then over the course of 2021 for the SBA PPP loans funded in
 
2021.
 
SBA PPP loan fee income totaled approximately $1.2
 
million for the first quarter of 2021.
 
At March 31, 2021 we had $5.0 million
(net) in deferred SBA PPP loan fees.
 
 
 
4
Allowance for Credit Losses
 
At March 31, 2021, the allowance for credit losses for
 
HFI loans totaled $22.0 million compared to $23.8 million
 
at December 31,
2020 and $21.1 million at March 31, 2020.
 
Activity within the allowance is provided on Page 9.
 
The $1.8 million net decrease in
the allowance for the first quarter of 2021 reflected net loan
 
recoveries totaling $0.5 million and the release of $2.3 million
 
in
reserves which reflected lower expected loan losses related to
 
COVID-19.
 
At March 31, 2021, the allowance represented 1.07% of
HFI loans and provided coverage of 411
 
%
 
of nonperforming loans compared to 1.19% and 406%, respectively,
 
at December 31,
2020 and 1.13%
 
and 433%, respectively, at
 
March
 
31, 2020.
 
At March 31, 2021, excluding SBA PPP loans
 
(100% government
guaranteed),
 
the allowance represented 1.19% of HFI loans compared to
 
1.30% at December 31, 2020.
 
 
Credit Quality/COVID-19 Exposure
 
Nonperforming assets (nonaccrual loans and OREO) totaled
 
$5.5 million at March 31, 2021 compared to $6.7 million
 
at December
31, 2020 and $6.3 million at March 31, 2020.
 
Nonaccrual loans totaled $5.4 million at March 31, 2021,
 
a $0.5 million decrease
from December 31, 2020 and a $0.5 million increase
 
over March 31, 2020.
 
The balance of OREO totaled $0.1
 
million at March 31,
2021, a decrease of $0.7 million from December 31, 2020
 
and a $1.3 million decrease from March 31, 2020.
 
We continue
 
to monitor our loan portfolio for segments that continue to be
 
affected by the pandemic.
 
To assist our clients, we have
extended loans totaling $333 million of which 75%
 
were for commercial borrowers and 25% were for consumer
 
borrowers.
 
Approximately $328 million, or 98%, of the loan balances associated
 
with these borrowers have resumed making regularly
scheduled payments
 
of which loan balances totaling $2.9 million were over 30 days
 
delinquent and an additional $0.6 million was
on nonaccrual status at March 31, 2021.
 
Of the $5 million that remains on extension, no loans were classified
 
at March 31, 2021.
 
 
Funding (Deposits/Debt)
 
Average total
 
deposits were $3.240 billion for the first quarter of 2021, an
 
increase of $173.4 million, or 5.7%, over the fourth
quarter of 2020 and $686.8 million, or 26.9%, over
 
the first quarter of 2020.
 
Average core deposit
 
s
 
grew $546.8 million over the
first quarter of 2020, which includes $342.9 million in
 
noninterest bearing deposits and $113.0
 
million in savings account balances.
In addition, average public fund deposits grew $121
 
million during this period.
 
Over the past 12 months, multiple government
stimulus programs have been implemented, including the
 
CARES Act and the American Rescue Plan Act, which are responsible for
a large part of the growth in average deposits. Given
 
these increases, the potential exists for our deposit levels to be volatile
throughout 2021 due to the uncertain timing of the outflows
 
of the stimulus related balances and the economic recovery.
 
It is
anticipated that current liquidity levels will remain robust
 
due to our strong overnight funds sold position.
 
The Bank continues to
strategically consider ways to safely deploy a portion
 
of this liquidity.
 
 
Average short
 
-term borrowings decreased $29.2 million over the fourth quarter
 
of 2020 and increased $30.5 million over the first
quarter of 2020,
 
which reflected a seasonal fluctuation in warehouse line
 
borrowing needs to support CCHL’s
 
loans held for sale.
 
 
Capital
 
Shareowners’ equity was $324.4 million at March
 
31, 2021 compared to $320.8 million at December 31, 2020
 
and $328.5 million at
March 31, 2020.
 
During the first quarter of 2021, shareowners’ equity was positively
 
impacted by net income of $9.5 million, a
$1.6 million increase in fair value of the interest rate swap
 
related to subordinated debt,
 
net adjustments totaling $0.3 million related
to transactions under our stock compensation plans, stock
 
compensation accretion of $0.2 million,
 
and a $0.1 million decrease in the
accumulated other comprehensive loss for our pension
 
plan.
 
Shareowners’ equity was reduced by a common stock dividend
 
of $2.5
million ($0.15 per share), reclassification of $4.2 million
 
to temporary equity to increase the redemption value of the
 
non-
controlling interest in CCHL, and a $1.4 million decrease
 
in the unrealized gain on investment securities.
 
At March 31, 2021, our total risk-based capital ratio
 
was 17.20%
 
compared to 17.30%
 
at December 31, 2020 and 17.19% at March
31, 2020.
 
Our common equity tier 1 capital ratio was 13.63%, 13.71%, and 13.55%,
 
respectively, on these dates.
 
Our leverage ratio
was 8.97%, 9.33%, and 10.81%, 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 6.13%
 
at
March 31, 2021 compared to 6.25%
 
and 7.98%
 
at December 31, 2020 and March 31, 2020, 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 $3.9 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
.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
5
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, 2020,
 
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)
Mar 31, 2021
Dec 31, 2020
Sep 30, 2020
Jun 30, 2020
Mar 31, 2020
Shareowners' Equity (GAAP)
$
324,426
$
320,837
$
339,425
$
335,057
$
328,507
Less: Goodwill (GAAP)
89,095
89,095
89,095
89,095
89,275
Tangible Shareowners' Equity (non-GAAP)
A
235,331
231,742
250,330
245,962
239,232
Total Assets (GAAP)
3,929,884
3,798,071
3,587,041
3,499,524
3,086,523
Less: Goodwill (GAAP)
89,095
89,095
89,095
89,095
89,275
Tangible Assets (non-GAAP)
B
$
3,840,789
$
3,708,976
$
3,497,946
$
3,410,429
$
2,997,248
Tangible Common Equity Ratio (non-GAAP)
A/B
6.13%
6.25%
7.16%
7.21%
7.98%
Actual Diluted Shares Outstanding (GAAP)
C
16,875,719
16,844,997
16,800,563
16,821,743
16,845,462
Tangible Book Value
 
per Diluted Share (non-GAAP)
A/C
$
13.94
$
13.76
$
14.90
$
14.62
$
14.20
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
6
CAPITAL CITY BANK
 
GROUP,
 
INC.
EARNINGS HIGHLIGHTS
Unaudited
Three Months Ended
(Dollars in thousands, except per share data)
Mar 31, 2021
Dec 31, 2020
Mar 31, 2020
EARNINGS
Net Income Attributable to Common Shareowners
$
9,506
$
7,746
$
4,287
Diluted Net Income Per Share
$
0.56
$
0.46
$
0.25
PERFORMANCE
Return on Average Assets
1.01
%
0.84
%
0.57
%
Return on Average Equity
11.81
8.97
5.20
Net Interest Margin
2.85
3.00
3.78
Noninterest Income as % of Operating Revenue
54.90
55.00
37.52
Efficiency Ratio
74.36
%
74.36
%
74.89
%
CAPITAL ADEQUACY
Tier 1 Capital
 
16.08
%
16.19
%
16.12
%
Total Capital
 
17.20
17.30
17.19
Leverage
 
8.97
9.33
10.81
Common Equity Tier 1
13.63
13.71
13.55
Tangible Common Equity
(1)
6.13
6.25
7.98
Equity to Assets
8.26
%
8.45
%
10.64
%
ASSET QUALITY
Allowance as % of Non-Performing Loans
410.78
%
405.66
%
432.61
%
Allowance as a % of Loans HFI
1.07
1.19
1.13
Net Charge-Offs as % of Average Loans
 
HFI
(0.10)
0.09
0.23
Nonperforming Assets as % of Loans HFI and OREO
0.27
0.33
0.34
Nonperforming Assets as % of Total Assets
0.14
%
0.18
%
0.21
%
STOCK PERFORMANCE
High
 
$
28.98
$
26.35
$
30.62
$
Low
21.42
18.14
15.61
Close
$
26.02
$
24.58
$
20.12
$
Average Daily Trading
 
Volume
30,303
22,271
40,536
(1)
 
Tangible common equity ratio is a non-GAAP financial measure.
 
For additional information, including a reconciliation to GAAP, refer to
 
Page 5.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
7
CAPITAL CITY BANK GROUP, INC.
CONSOLIDATED STATEMENT
 
OF FINANCIAL CONDITION
Unaudited
2021
2020
(Dollars in thousands)
First Quarter
Fourth Quarter
Third Quarter
Second Quarter
First Quarter
ASSETS
Cash and Due From Banks
$
73,973
$
67,919
$
76,509
$
75,155
$
72,676
Funds Sold and Interest Bearing Deposits
851,910
860,630
626,104
513,273
196,936
Total Cash and Cash Equivalents
925,883
928,549
702,613
588,428
269,612
Investment Securities Available for Sale
406,245
324,870
328,253
341,180
382,514
Investment Securities Held to Maturity
199,109
169,939
202,593
232,178
251,792
 
Total Investment Securities
605,354
494,809
530,846
573,358
634,306
Loans Held for Sale ("HFS")
82,081
114,039
116,561
76,610
82,598
Loans Held for Investment ("HFI"):
Commercial, Financial, & Agricultural
413,819
393,930
402,997
421,270
249,020
Real Estate - Construction
138,104
135,831
125,804
117,794
122,595
Real Estate - Commercial
669,158
648,393
656,064
662,434
656,084
Real Estate - Residential
358,849
342,664
335,713
353,831
354,150
Real Estate - Home Equity
202,099
205,479
197,363
194,479
196,443
Consumer
267,666
269,520
268,393
266,417
275,982
Other Loans
7,082
9,879
10,488
4,883
6,580
Overdrafts
950
730
1,339
1,069
1,533
Total Loans Held for Investment
2,057,727
2,006,426
1,998,161
2,022,177
1,862,387
Allowance for Credit Losses
(22,026)
(23,816)
(23,137)
(22,457)
(21,083)
Loans Held for Investment, Net
2,035,701
1,982,610
1,975,024
1,999,720
1,841,304
Premises and Equipment, Net
86,370
86,791
87,192
87,972
87,684
Goodwill
89,095
89,095
89,095
89,095
89,275
Other Real Estate Owned
110
808
1,227
1,059
1,463
Other Assets
105,290
101,370
84,483
83,282
80,281
Total Other Assets
280,865
278,064
261,997
261,408
258,703
Total Assets
$
3,929,884
$
3,798,071
$
3,587,041
$
3,499,524
$
3,086,523
LIABILITIES
Deposits:
Noninterest Bearing Deposits
$
1,473,891
$
1,328,809
$
1,378,314
$
1,377,033
$
1,066,607
NOW Accounts
993,571
1,046,408
827,506
808,244
779,467
Money Market Accounts
269,041
266,649
247,823
240,754
210,124
Regular Savings Accounts
518,373
474,100
451,944
423,924
384,480
Certificates of Deposit
103,232
101,594
103,859
105,041
104,907
Total Deposits
3,358,108
3,217,560
3,009,446
2,954,996
2,545,585
Short-Term Borrowings
55,687
79,654
90,936
63,958
76,516
Subordinated Notes Payable
52,887
52,887
52,887
52,887
52,887
Other Long-Term Borrowings
1,829
3,057
5,268
5,583
5,896
Other Liabilities
109,487
102,076
71,880
75,702
70,044
Total Liabilities
3,577,998
3,455,234
3,230,417
3,153,126
2,750,928
Temporary Equity
27,460
22,000
17,199
11,341
7,088
SHAREOWNERS' EQUITY
Common Stock
169
168
168
168
168
Additional Paid-In Capital
32,804
32,283
31,425
31,575
32,100
Retained Earnings
335,324
332,528
333,545
328,570
321,772
Accumulated Other Comprehensive Loss, Net of Tax
(43,871)
(44,142)
(25,713)
(25,256)
(25,533)
Total Shareowners' Equity
324,426
320,837
339,425
335,057
328,507
Total Liabilities, Temporary Equity and Shareowners' Equity
$
3,929,884
$
3,798,071
$
3,587,041
$
3,499,524
$
3,086,523
OTHER BALANCE SHEET DATA
Earning Assets
$
3,597,071
$
3,475,904
$
3,271,672
$
3,185,418
$
2,776,228
Interest Bearing Liabilities
1,994,620
2,024,349
1,780,223
1,700,391
1,614,277
Book Value Per Diluted Share
$
19.22
$
19.05
$
20.20
$
19.92
$
19.50
Tangible Book Value
 
Per Diluted Share
(1)
13.94
13.76
14.90
14.62
14.20
Actual Basic Shares Outstanding
16,852
16,791
16,761
16,780
16,812
Actual Diluted Shares Outstanding
16,876
16,845
16,801
16,822
16,845
(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.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
8
CAPITAL CITY BANK
 
GROUP,
 
INC.
CONSOLIDATED STATEMENT
 
OF OPERATIONS
Unaudited
2021
2020
(Dollars in thousands, except per share data)
First
Quarter
Fourth
Quarter
Third
Quarter
Second
Quarter
First
Quarter
INTEREST INCOME
Interest and Fees on Loans
$
23,350
$
23,878
$
23,594
$
23,687
$
23,593
Investment Securities
1,883
2,096
2,426
2,737
3,015
Funds Sold
213
180
146
88
757
Total Interest Income
25,446
26,154
26,166
26,512
27,365
INTEREST EXPENSE
Deposits
208
201
190
218
939
Short-Term Borrowings
412
639
498
421
132
Subordinated Notes Payable
307
311
316
374
471
Other Long-Term Borrowings
21
30
40
41
50
Total Interest Expense
948
1,181
1,044
1,054
1,592
Net Interest Income
24,498
24,973
25,122
25,458
25,773
Provision for Credit Losses
(982)
1,342
1,308
2,005
4,990
Net Interest Income after Provision for Credit Losses
25,480
23,631
23,814
23,453
20,783
NONINTEREST INCOME
Deposit Fees
4,271
4,713
4,316
3,756
5,015
Bank Card Fees
3,618
3,462
3,389
3,142
3,051
Wealth Management Fees
3,090
3,069
2,808
2,554
2,604
Mortgage Banking Revenues
17,125
17,711
22,983
19,397
3,253
Other
 
1,722
1,568
1,469
1,350
1,555
Total Noninterest Income
29,826
30,523
34,965
30,199
15,478
NONINTEREST EXPENSE
Compensation
26,064
26,722
26,164
23,658
19,736
Occupancy, Net
5,967
5,976
5,906
5,798
4,979
Other Real Estate, Net
(118)
567
219
116
(798)
Other
 
8,563
8,083
8,053
7,731
7,052
Total Noninterest Expense
40,476
41,348
40,342
37,303
30,969
OPERATING PROFIT
14,830
12,806
18,437
16,349
5,292
Income Tax Expense
2,787
2,833
3,165
2,950
1,282
Net Income
12,043
9,973
15,272
13,399
4,010
Pre-Tax Income Attributable to Noncontrolling Interest
(2,537)
(2,227)
(4,875)
(4,253)
277
NET INCOME ATTRIBUTABLE
 
TO COMMON SHAREOWNERS
$
9,506
$
7,746
$
10,397
$
9,146
$
4,287
PER COMMON SHARE
Basic Net Income
$
0.56
$
0.46
$
0.62
$
0.55
$
0.25
Diluted Net Income
0.56
0.46
0.62
0.55
0.25
Cash Dividend
 
$
0.15
$
0.15
$
0.14
$
0.14
$
0.14
AVERAGE
 
SHARES
Basic
 
16,838
16,763
16,771
16,797
16,808
Diluted
 
16,862
16,817
16,810
16,839
16,842
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
9
CAPITAL CITY BANK GROUP,
 
INC.
ALLOWANCE FOR CREDIT LOSSES
 
("ACL")
AND RISK ELEMENT ASSETS
Unaudited
2021
2020
(Dollars in thousands, except per share data)
First
Quarter
Fourth
Quarter
Third
Quarter
Second
Quarter
First
Quarter
ACL - HELD FOR INVESTMENT
Balance at Beginning of Period
$
23,816
$
23,137
$
22,457
$
21,083
$
13,905
Impact of Adopting ASC 326 (CECL)
-
-
-
-
3,269
Provision for Credit Losses
(2,312)
1,165
1,265
1,615
4,990
Net Charge-Offs
(522)
486
585
241
1,081
Balance at End of Period
$
22,026
$
23,816
$
23,137
$
22,457
$
21,083
As a % of Loans HFI
1.07%
1.19%
1.16%
1.11%
1.13%
As a % of Nonperforming Loans
410.78%
405.66%
420.30%
322.37%
432.61%
ACL - UNFUNDED COMMITMENTS
Balance at Beginning of Period
1,644
$
1,467
$
1,424
$
1,033
$
157
Impact of Adopting ASC 326 (CECL)
-
-
-
-
876
Provision for Credit Losses
 
1,330
177
43
391
-
Balance at End of Period
(1)
2,974
1,644
1,467
1,424
1,033
CHARGE-OFFS
Commercial, Financial and Agricultural
$
69
$
104
$
137
$
186
$
362
Real Estate - Commercial
-
-
17
-
11
Real Estate - Residential
6
38
1
1
110
Real Estate - Home Equity
5
10
58
52
31
Consumer
564
668
619
634
864
Overdrafts
492
564
450
541
702
Total Charge-Offs
$
1,136
$
1,384
$
1,282
$
1,414
$
2,080
RECOVERIES
Commercial, Financial and Agricultural
$
136
$
64
$
74
$
74
$
40
Real Estate - Construction
-
50
-
-
-
Real Estate - Commercial
645
27
30
70
191
Real Estate - Residential
75
153
35
51
40
Real Estate - Home Equity
124
40
41
64
33
Consumer
311
306
280
365
268
Overdrafts
367
258
237
549
427
Total Recoveries
$
1,658
$
898
$
697
$
1,173
$
999
NET CHARGE-OFFS
$
(522)
$
486
$
585
$
241
$
1,081
Net Charge-Offs as a % of Average
 
Loans HFI
(2)
(0.10)%
0.09%
0.11%
0.05%
0.23%
RISK ELEMENT ASSETS
Nonaccruing Loans
$
5,362
$
5,871
$
5,505
$
6,966
$
4,874
Other Real Estate Owned
110
808
1,227
1,059
1,463
Total Nonperforming Assets ("NPAs")
$
5,472
$
6,679
$
6,732
$
8,025
$
6,337
Past Due Loans 30-89 Days
 
$
2,622
$
4,594
$
3,191
$
2,948
$
5,077
Classified Loans
20,608
17,631
16,772
17,091
16,548
Performing Troubled Debt Restructuring's
$
13,597
$
13,887
$
14,693
$
15,133
$
15,934
Nonperforming Loans as a % of Loans HFI
0.26%
0.29%
0.28%
0.34%
0.26%
NPAs as a % of Loans HFI and Other Real Estate
0.27%
0.33%
0.34%
0.40%
0.34%
NPAs as a % of
 
Total Assets
0.14%
0.18%
0.19%
0.23%
0.21%
(1)
 
Recorded in other liabilities
(2)
 
Annualized
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
10
CAPITAL CITY BANK GROUP,
 
INC.
AVERAGE
 
BALANCE AND INTEREST RATES
Unaudited
First Quarter 2021
Fourth Quarter 2020
Third Quarter 2020
Second Quarter 2020
First Quarter 2020
(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 Held for Sale
$
106,242
$
970
3.70
%
$
121,052
$
878
3.85
%
$
92,522
$
671
3.64
%
$
74,965
550
3.41
%
$
34,923
$
210
2.64
%
Loans Held for Investment
(1)
2,044,363
22,483
4.46
1,993,470
23,103
4.55
2,005,178
23,027
4.53
1,982,960
23,235
4.70
1,847,780
23,482
5.11
Investment Securities
Taxable Investment Securities
528,842
1,863
1.41
513,277
2,072
1.61
553,395
2,401
1.73
601,509
2,708
1.80
629,512
2,995
1.91
Tax-Exempt Investment Securities
(1)
3,844
25
2.61
4,485
30
2.71
4,860
32
2.66
5,865
37
2.51
5,293
25
1.86
Total Investment Securities
532,686
1,888
1.42
517,762
2,102
1.62
558,255
2,433
1.74
607,374
2,745
1.81
634,805
3,020
1.91
Funds Sold
814,638
214
0.11
705,125
180
0.10
567,883
146
0.10
351,473
88
0.10
234,372
757
1.30
Total Earning Assets
3,497,929
$
25,555
2.96
%
3,337,409
$
26,263
3.14
%
3,223,838
$
26,277
3.25
%
3,016,772
$
26,618
3.55
%
2,751,880
$
27,469
4.01
%
Cash and Due From Banks
68,978
73,968
69,893
72,647
56,958
Allowance for Loan Losses
(24,128)
(23,725)
(22,948)
(21,642)
(14,389)
Other Assets
278,742
264,784
268,549
261,449
244,339
Total Assets
$
3,821,521
$
3,652,436
$
3,539,332
$
3,329,226
$
3,038,788
LIABILITIES:
Interest Bearing Deposits
NOW Accounts
$
985,517
$
76
0.03
%
$
879,564
$
66
0.03
%
$
826,776
$
61
0.03
%
$
789,378
$
78
0.04
%
$
808,811
$
725
0.36
%
Money Market Accounts
269,829
33
0.05
261,543
34
0.05
247,185
32
0.05
222,377
40
0.07
212,211
117
0.22
Savings Accounts
492,252
60
0.05
466,116
57
0.05
438,762
54
0.05
409,366
50
0.05
379,237
46
0.05
Time Deposits
102,089
39
0.15
102,809
44
0.17
104,522
43
0.16
104,718
50
0.19
105,542
51
0.19
Total Interest Bearing Deposits
1,849,687
208
0.05
%
1,710,032
201
0.05
%
1,617,245
190
0.05
%
1,525,839
218
0.06
%
1,505,801
939
0.25
%
Short-Term Borrowings
67,033
412
2.49
%
95,280
639
2.67
%
74,557
498
2.66
%
73,377
421
2.31
%
32,915
132
1.61
%
Subordinated Notes Payable
52,887
307
2.32
52,887
311
2.30
52,887
316
2.34
52,887
374
2.80
52,887
471
3.52
Other Long-Term Borrowings
2,736
21
3.18
3,700
30
3.18
5,453
40
2.91
5,766
41
2.84
6,312
50
3.21
Total Interest Bearing Liabilities
1,972,343
$
948
0.19
%
1,861,899
$
1,181
0.25
%
1,750,142
$
1,044
0.24
%
1,657,869
$
1,054
0.26
%
1,597,915
$
1,592
0.40
%
Noninterest Bearing Deposits
1,389,821
1,356,104
1,354,032
1,257,614
1,046,889
Other Liabilities
111,050
74,605
83,192
72,073
59,587
Total Liabilities
3,473,214
3,292,608
3,187,366
2,987,556
2,704,391
Temporary Equity
21,977
16,154
11,893
8,155
2,506
SHAREOWNERS' EQUITY:
326,330
343,674
340,073
333,515
331,891
Total Liabilities, Temporary
 
Equity and Shareowners' Equity
$
3,821,521
$
3,652,436
$
3,539,332
$
3,329,226
$
3,038,788
Interest Rate Spread
$
24,607
2.77
%
$
25,082
2.88
%
$
25,233
3.01
%
$
25,564
3.30
%
$
25,877
3.61
%
Interest Income and Rate Earned
(1)
25,555
2.96
26,263
3.14
26,277
3.25
26,618
3.55
27,469
4.01
Interest Expense and Rate Paid
(2)
948
0.11
1,181
0.14
1,044
0.13
1,054
0.14
1,592
0.23
Net Interest Margin
$
24,607
2.85
%
$
25,082
3.00
%
$
25,233
3.12
%
$
25,564
3.41
%
$
25,877
3.78
%
(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.