Capital City Bank Group, Inc.
Reports Third Quarter 2021 Results
TALLAHASSEE, Fla.
(October 26, 2021) – Capital City Bank Group, Inc. (NASDAQ: CCBG) today
reported net income of $10.1
million, or $0.60 per diluted share, for the third quarter of 2021 compared
to net income of $7.4 million, or $0.44 per diluted share,
for the second quarter of 2021, and $10.4 million, or $0.62 per diluted
share, for the third quarter of 2020.
For the first nine months of 2021, net income totaled $27.0 million,
or $1.60 per diluted share, compared to net income of $23.8
million, or $1.42 per diluted share, for the same period of 2020.
Net income for 2021 included partial pre-tax pension settlement
charges totaling $2.5 million (3Q - $0.5 million and 2Q -
$2.0 million), or $0.12 per diluted share (after tax).
Our return on average assets (“ROA”) was 0.99% and our return on average equity (“ROE”)
was 11.72% for the third quarter of
2021.
These metrics were 0.75% and 9.05% for the second quarter of 2021, respectively,
and 1.17% and 12.16% for the third
quarter of 2020, respectively.
For the first nine months of 2021, our ROA was 0.92% and our ROE was 10.87%
compared to 0.96%
and 9.50%, respectively,
for the same period of 2020.
QUARTER HIGHLIGHTS
●
Net interest income grew
$1.7 million, or 6.5% sequentially,
driven by higher loan fees of $1.3 million (primarily SBA PPP fees
of $1.0 million) and a better earning asset mix
●
Average loans, excluding PPP loans,
grew $35 million and average investment securities increased
$218 million
●
Strong credit
quality metrics resulted in no loan loss provision
for the quarter
●
Noninterest expense decreased
$2.4 million due to lower pension settlement charges of
$1.5 million and a $1.0 million gain from
the sale of a banking office
●
Capital City Home Loans (“CCHL”) contributed $0.06
per share
“Capital City posted strong third quarter results and, year over year,
earnings have increased 13.4%” said William G. Smith,
Jr.,
Chairman, President and CEO of Capital City Bank Group.
“Historically favorable credit quality continued to improve resulting in
no provision for loan losses in the third quarter and a net provision credit year-to-date.
Operating revenues improved as we
experienced growth in both net interest income and noninterest income,
while noninterest expense declined reflecting lower pension
settlement charges and a gain on the sale of ORE (office
building).
Our recent addition of Capital City Strategic Wealth
(a financial
planning/advisory service) is gaining traction and expands our
portfolio of wealth management businesses.
We continue to focus
our
expansion efforts on markets in west Florida and the northern
arc of Atlanta.
While challenges remain, we are identifying
opportunities and executing on strategies we believe are sustainable and
add long-term value for our shareowners.
I am optimistic
about the future and appreciate your continued support.”
Discussion of Operating Results
Net Interest Income/Net Interest
Margin
Tax-equivalent net
interest income for the third quarter of 2021 totaled $27.7 million compared
to $26.1 million for the second
quarter of 2021 and $25.2 million for the third quarter of 2020.
Compared to the second quarter of 2021, the increase reflected
higher loan fees of $1.3 million (SBA PPP loan fees increased $1.0 million)
and higher investment securities income of $0.3
million,
which reflected deployment of excess overnight funds into the investment
portfolio.
Compared to the second quarter of 2021, lower
loan interest income from SBA PPP loans was offset by loan interest
income from growth in non-SBA PPP loans.
Compared to the
third quarter of 2020, the increase was primarily attributable to higher SBA PPP loan fees
of $2.5 million.
For the first nine months
of 2021, tax-equivalent net interest income totaled $78.4 million compared
to $76.7 million for the same period of 2020.
The
increase generally reflected higher SBA PPP loan fees and lower interest expense,
partially offset by lower rates earned on
investment securities and variable/adjustable rate loans.
Our net interest margin for the third quarter of 2021 was 2.98%, an increase
of nine basis points over the second quarter of 2021 and
a decrease of 14 basis points from the third quarter of 2020.
Compared to the second quarter of 2021, the increase was primarily
driven by higher SBA PPP loan fees.
Compared to the third quarter of 2020, the decrease was primarily attributable
to growth in
earning assets (driven by deposit inflows),
which negatively impacts our margin percentage.
For the first nine months of 2021, the
net interest margin decreased 51 basis points to 2.91%,
which is generally reflective of growth in earning assets. Our net interest
margin for the third quarter of 2021, excluding the impact
of overnight funds in excess of $200 million, was 3.50%.