3
Funding (Deposits/Debt)
Average total
deposits were $3.714 billion for the first quarter of 2022, an increase of $164.9
million, or 4.6%, over the fourth
quarter of 2021 and $474.6 million, or 14.6%, over the first quarter of
2021.
Growth over the fourth quarter of 2021 was primarily
attributable to an increase in seasonal public fund deposits. Compared to
the first quarter 2021, strong growth occurred in our
noninterest bearing deposits, NOW accounts, and savings account
balances.
Over the past few years,
we have experienced strong
core deposit growth, in addition to growth related to multiple
government stimulus programs in response to the Covid-19 pandemic
,
such as those under the CARES Act and the American Rescue Plan Act.
Given these increases,
the potential exists for our deposit
levels to be volatile into 2022 due to the uncertain timing of the outflows
of the stimulus related balances,
in addition to the
frequency and degree to which the Federal Open Market Committee (FOMC) raises the
overnight funds rate. 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 borrowings
decreased $14.6 million from the fourth quarter of 2021
and declined $36.6 million from the first quarter of
2021, as both periods reflected lower warehouse line borrowing
needs to support CCHL’s
loans held for sale.
Capital
Shareowners’ equity was $372.1 million at March 31, 2022 compared
to $383.2 million at December 31, 2021 and $324.4 million at
March 31, 2021.
During the first quarter of 2022, shareowners’ equity was positively impacted by net
income of $8.5 million, a
$0.2 million decrease in the accumulated other comprehensive loss for
our pension plan, a $1.4 million increase in the fair value of
the interest rate swap related to subordinated debt, net adjustments totaling
$0.5 million related to transactions under our stock
compensation plans,
and stock compensation accretion of $0.2 million.
Shareowners’ equity was reduced by common stock
dividends
of $2.7 million ($0.16 per share) and a $19.1 million increase in the unrealized loss on investment
securities.
At March 31, 2022, our total risk-based capital ratio was 16.98% compared
to 17.15% at December 31, 2021 and 17.20% at March
31, 2021.
Our common equity tier 1 capital ratio was 13.77%, 13.86%, and 13.63%, respectively,
on these dates.
Our leverage ratio
was 8.78%, 8.95%, and 8.97%, 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 6.61% at
March 31, 2022 compared to 6.95% and 6.13% at December 31, 2021
and March 31, 2021, respectively.
The slight reduction in our
regulatory capital ratios was attributable to loan growth and higher asset levels.
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 $4.3 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,
securities brokerage services and
financial advisory services, including the sale of life insurance, risk management
and asset protection services.
Our bank
subsidiary, Capital City Bank,
was founded in 1895 and now has 57 banking offices and 86 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: fluctuations in inflation, interest rates, or monetary policies; the
accuracy of the our financial statement estimates and
assumptions; legislative or regulatory changes; the effect
s
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; the magnitude and
duration of the ongoing COVID-19 pandemic and its impact on the global
economy and financial market conditions and our
business; 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, 2021, 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.