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
.