Capital City Bank Group, Inc.
 
Reports Second Quarter 2023
 
Results
TALLAHASSEE, Fla.
 
(July 25, 2023) – Capital City Bank Group, Inc. (NASDAQ: CCBG)
 
today reported net income attributable to
common shareowners
 
of $14.6 million, or $0.85 per diluted share, for the second quarter of 2023
 
compared to $15.0 million, or
$0.88 per diluted share, for the first quarter of 2023, and $8.7 million, or $0.51
 
per diluted share, for the second quarter of 2022.
 
QUARTER HIGHLIGHTS (2
nd
 
Quarter 2023 versus 1
st
 
Quarter 2023)
Tax-equivalent
 
net interest income totaled $40.1 million compared
 
to $40.5 million – net interest margin
 
increased from
 
4.04%
to 4.05% - total deposit cost increased 17
 
basis points to 43 basis points
 
Loan balances grew $75.3 million, or
 
2.9% (average),
 
and $30.1 million, or 1.1% (end of period)
Deposit balances (including repurchase
 
agreements) declined $89.2 million, or 2.3%
 
(average), and $16.9 million, or 0.4% (end
of period)
 
Continued strong credit
 
quality metrics – lower provision expense of
 
$0.9 million reflected lower loan growth
 
and net loan
charge-offs (7 basis points of average loans)
 
– the allowance coverage ratio increased
 
from 1.01% to 1.05%
 
Noninterest income increased
 
$0.7 million, or 2.8%, due to higher wealth management fees, deposit fees, and
 
bankcard fees.
 
Total
 
revenues and earnings (break
 
-even) at Capital City Home Loans were comparable
 
to the prior quarter and included a $1.4
million gain from the sale of mortgage
 
servicing rights
Noninterest expense increased
 
$2.1 million, or 5.1%, primarily due to a $1.8 million gain on the sale of a banking office
 
in the
first quarter of 2023.
 
A consulting payment of $0.8 million related to
 
the negotiation of our core processing
 
system outsourcing
contract and a $0.3 million gain related to
 
our supplemental executive retirement
 
plan also impacted noninterest expense for the
second quarter
 
Tangible
 
book value per share increased
 
$0.59, or 3.2%, driven by strong earnings – net unrealized
 
loss on available for sale
securities remained stable
Repurchased 40,495 shares
 
of common stock for the second quarter of 2023 compared
 
to 25,241 shares for the first quarter of
2023
“Capital City realized another solid quarter of earnings and growth in
 
tangible book value”
 
said William G. Smith, Jr.,
 
Chairman,
President, and CEO of Capital City Bank Group. “I feel good about our fundamental
 
performance factors – our margin and credit
quality have remained stable, we’ve realized nice loan growth, and our
 
deposit balances have behaved as expected.
 
We anticipate
that funding pressures will continue for the industry into the second half of
 
the year, but I continue to feel good about our balance
sheet positioning and the value that our core deposit franchise contributes
 
to our performance.”
Discussion of Operating Results
Net Interest Income/Net Interest
 
Margin
Tax-equivalent net
 
interest income for the second quarter of 2023 totaled $40.1 million, compared
 
to $40.5 million for the first
quarter of 2023, and $28.4 million for the second quarter of 2022.
 
Compared to the first quarter of 2023, the decrease reflected
higher deposit interest expense and a lower level of interest income
 
from overnight funds,
 
partially offset by higher loan interest due
to loan growth and higher interest rates.
 
For the first six months of 2023, tax-equivalent net interest income totaled
 
$80.6 million
compared to $53.2 million for the same period of 2022.
 
The increases over both prior year periods were driven by strong loan
growth and higher interest rates across a majority of our earning assets.
Our net interest margin for the second quarter of 2023 was 4.05%,
 
an increase of one basis point over the first quarter of 2023 and an
increase of 118 basis points over the second
 
quarter of 2022.
 
For the month of June 2023, our net interest margin was 4.06%.
 
For
the first six months of 2023, our net interest margin was 4.04%,
 
an increase of 133 basis points over the same period of 2022.
 
The
increase compared to all prior periods reflected a combination of higher
 
interest rates and loan growth, partially offset by a higher
cost of deposits.
 
For the second quarter of 2023, our cost of funds was 51 basis points, an increase of
 
16 basis points over the first
quarter of 2023 and 41 basis points over the second quarter of 2022.
 
Our total cost of deposits (including noninterest bearing
accounts) was 43 basis points, 26 basis points, and 3 basis points, respectively,
 
for the same periods.
 
Provision for Credit Losses
 
We recorded
 
a provision for credit losses of $2.2 million for the second quarter of 2023
 
compared to $3.1 million for the first
quarter of 2023 and $1.5 million for the second quarter of 2022.
 
The decrease in the provision compared to the first quarter of 2023
was primarily attributable to a lower level of loan growth and a decrease in net loan
 
charge-offs.
 
For the first six months of 2023,
we recorded a provision for credit losses of $5.3 million compared to $1.5 million
 
for the same period of 2022.
 
The release of
reserves held for pandemic related losses favorably impacted our provision
 
in 2022.
 
We discuss the allowance for
 
credit losses
further below.
2
Noninterest Income and Noninterest
 
Expense
Noninterest income for the second quarter of 2023 totaled $22.9 million
 
compared to $22.2 million for the first quarter of 2023 and
$24.9 million for the second quarter of 2022.
 
The $0.7 million increase over the first quarter of 2023 reflected an increase in other
income of $1.4 million, wealth management fees of $0.2 million, deposit fees of
 
$0.1 million, and bankcard fees of $0.1
 
million,
partially offset by a decrease in mortgage banking revenues of $1.1
 
million.
 
The increase in other income was attributable to a $1.4
million gain from the sale of mortgage servicing rights.
 
The decrease in mortgage banking revenues was attributable to a lower
 
gain
on sale margin.
 
Compared to the second quarter of 2022, the $2.0 million decrease in
 
noninterest income reflected decreases in mortgage banking
revenues of $3.2 million, wealth management fees of $0.3
 
million, deposit fees of $0.1 million, and bank card fees of $0.2
 
million,
partially offset by an increase in other income of $1.8
 
million.
 
The decrease in mortgage banking revenues was attributable to a
lower gain on sale margin.
 
The increase in other income was primarily related to a $1.4 million gain from
 
the sale of mortgage
servicing rights.
 
For the first six months of 2023, noninterest income totaled $45.1 million compared
 
to $50.7 million for the same
period of 2022 with the $5.6 million decrease primarily attributable
 
to lower mortgage banking revenues of $5.2 million and wealth
management fees of $2.4 million, partially offset by a
 
$2.3 million increase in other income.
 
The decrease in mortgage banking
revenues was attributable to a lower gain on sale margin.
 
The decrease in wealth management fees was driven by a decrease in
insurance commissions due to the sale of large policies in
 
2022.
 
The increase in other income was primarily due to a $1.4
 
million
gain from the sale of mortgage servicing rights, and increases in miscellaneous
 
income of $0.4 million, loan servicing fees of $0.2
million, and miscellaneous loan fees of $0.1 million.
 
Noninterest expense for the second quarter of 2023 totaled $42.5
 
million compared to $40.5 million for the first quarter of 2023
 
and
$40.5 million for the second quarter of 2022.
 
Compared to the first quarter of 2023, the $2.1 million increase was primarily due
 
to
an increase in other expense of $2.8 million that was partially offset
 
by a $0.8 million decrease in compensation expense.
 
The
unfavorable variance in other expense reflected a $1.8 million gain from
 
the sale of a banking office in the first quarter of 2023.
 
Further, the second quarter of 2023
 
included a $0.8 million expense related to a consulting engagement to assist in negotiating
 
a
multi-year contract for the outsourcing of our core processing system as well as higher
 
expense for advertising and
travel/entertainment totaling $0.3 million, and $0.2 million related to
 
our VISA (class B shares) swap.
 
Partially offsetting these
increases was a $0.3 million gain related to our supplemental executive retirement
 
plan.
 
The decrease in compensation expense was
primarily attributable to a $0.5 million decrease in stock-based
 
compensation expense and a $0.2 million decrease in other associate
benefit expense.
 
Compared to the second quarter of 2022, the $2.0 million increase in noninterest
 
expense reflected a $1.8 million increase in other
expense and occupancy expense of $0.7 million, partially offset
 
by a decrease in compensation expense of $0.5 million.
 
For the
first six months of 2023, noninterest expense totaled $83.0 million compared
 
to $79.7 million for the same period of 2022 with the
$3.3 million increase attributable to an increase in other expense of
 
$1.6 million increase, occupancy expense of $1.4 million, and
compensation expense of $0.3 million.
 
The increase in other expense over both prior year periods was primarily related
 
to the
previously mentioned consulting payment of $0.8 million made in the
 
second quarter of 2023 and increases
 
in pension plan expense
(non-service-related component), FDIC insurance fees, and loan servicing (for
 
residential loans).
 
The aforementioned gain from the
sale of a banking office in the first quarter of 2023 partially offset
 
these increases for the six-month period comparison.
 
The
addition of four new banking offices since mid/late 2022
 
and higher property/equipment insurance premiums drove the increase in
occupancy expense for both prior period comparisons.
 
The favorable variance in compensation expense versus the second quarter
of 2022 was primarily due to a $0.7 million decrease in pension plan expense (service
 
cost) that was partially offset by a $0.3
million increase in associate insurance expense which reflected an increase
 
in premiums.
 
The slight unfavorable variance in
compensation expense versus the six-month period of 2022 reflected
 
an increase in salary expense of $1.0 million (primarily the
addition of staffing in our new markets), associate insurance expense
 
of $0.3 million, and stock-based compensation of $0.3 million,
that was partially offset by a $1.4 million decrease in
 
pension plan expense (service cost).
Income Taxes
We realized income
 
tax expense of $3.5 million (effective rate of 19.6%) for the
 
second quarter of 2023
 
compared to $4.1 million
(effective rate of 21.7%) for the first quarter of 2023 and
 
$2.2
 
million (effective rate of 19.4%) for the second quarter of 202
 
2.
 
For
the first six months of 2023, we realized income tax expense of $7.7 million (effective
 
rate of 20.6%) compared to $4.4 million
(effective rate of 19.6%) for the same period of 2022. The decrease
 
in our effective tax rate for the second quarter of 2023 reflected
tax benefit accrued from an investment in a solar tax credit equity fund.
 
Absent discrete items, we expect our annual effective tax
rate to approximate 20-21% for 2023.
 
3
Discussion of Financial Condition
Earning Assets
Average earning
 
assets totaled $3.975 billion for the second quarter of 2023, a decrease of $87.9 million, or
 
2.2%, from the first
quarter of 2023, and a decrease of $57.9 million, or 1.4%, from the fourth quar
 
ter of 2022.
 
The decrease from both prior periods
was attributable to lower deposit balances (see below –
Deposits
).
 
The mix of earning assets continues to improve as overnight
funds are being utilized to fund loan growth.
 
Average loans
 
held for investment (“HFI”) increased $75.3 million, or 2.9%, over the first quarter
 
of 2023 and $218.3 million, or
9.0%, over the fourth quarter of 2022.
 
Period end loans increased $30.1 million, or 1.1%, over the first quarter of 2023 and
 
$141.8
million, or 5.6%, over the fourth quarter of 2022.
 
Compared to both prior periods, the growth was primarily in the residential real
estate and commercial real estate categories and was partially offset
 
by lower indirect auto and home equity loan balances.
 
Allowance for Credit Losses
At June 30, 2023, the allowance for credit losses for HFI loans totaled
 
$28.0 million compared to $26.5 million at March 31, 2023
and $24.7 million at December 31, 2022.
 
Activity within the allowance is provided on Page 9.
 
The increase in the allowance was
driven primarily by loan growth.
 
At June 30, 2023, the allowance represented 1.05% of HFI loans compared
 
to 1.01% at March 31,
2023,
 
and 0.98% at December 31, 2022.
Credit Quality
Credit quality metrics remained strong for the quarter.
 
Nonperforming assets (nonaccrual loans and other real estate) totaled $6.6
million at June 30, 2023 compared to $4.6 million at March 31,
 
2023 and $2.7 million at December 31, 2022.
 
At June 30, 2023,
nonperforming assets as a percent of total assets equaled 0.15%, compared
 
to 0.10%
 
at March 31, 2023 and 0.06% at December 31,
2022.
 
Nonaccrual loans totaled $6.6 million at June 30, 2023, a $2.0 million increase over March
 
31, 2023 and a $4.3 million
increase over December 31, 2022.
 
The increase was primarily due to the addition of one large residential
 
loan ($1.1 million) to
nonaccrual status which was adequately secured and reserved for.
 
Further, classified loans totaled $15.0 million at June
 
30, 2023, a
$2.8 million increase over March 31, 2023 and a $4.4
 
million decrease from December 31, 2022.
 
Deposits
Average total
 
deposits were $3.720 billion for the second quarter of 2023, a decrease of $97.8 million,
 
or 2.6%, from the first
quarter of 2023 and a decrease of $83.5 million, or 2.2%, from the fourth quarter
 
of 2022.
 
Compared to both prior periods, the
decreases were primarily attributable to lower noninterest bearing and savings
 
balances, primarily offset by higher money market
balances.
 
Compared to the first quarter of 2023, the decrease in NOW account balances reflected
 
the seasonal decline in our public
funds balances.
 
Compared to the fourth quarter of 2022, the increase in NOW accounts reflected higher
 
average public funds
balances which begin to build in December and affect
 
the average comparison.
 
At June 30, 2023, total deposits were $3.789 billion, a decrease of $35.1
 
million, or 0.9%, from March 31, 2023 and $150.5 million,
or 3.8%, from December 31, 2022.
 
The June 30, 2023 deposit balance included a $103 million short-term deposit (in
 
the NOW
category) made late in June by a municipal client.
 
Compared to both prior periods, the decreases were primarily attributable to
lower noninterest bearing balances, savings balances, and NOW balances (primarily
 
public funds,
 
excluding the previously
mentioned large municipal client deposit), primarily offset
 
by higher money market balances.
 
For comparison to the prior periods, both the average and period-end
 
balance variances in noninterest bearing and savings balances
generally reflected higher tax payments made by clients in April, continued
 
client spend of stimulus savings, the migration (re-mix)
of balances to an interest-bearing product type (primarily money market
 
accounts), and clients seeking higher yielding investment
products outside of the Bank, including the migration of $13 million in the
 
second quarter of 2023 and $43 million in the first six
months of 2023 to our wealth management division.
 
Repurchase agreement balances averaged $17.9 million for the second
 
quarter of 2023, an increase of $8.5 million over the first
quarter of 2023 and $9.4 million over the fourth quarter of 2022.
 
At June 30, 2023, repurchase agreement balances were $22.6
million compared to $4.4 million at March 31, 2023 and $6.6 million at
 
December 31, 2022.
4
Liquidity
The Bank maintained an average net overnight funds (deposits with banks plus
 
FED funds sold less FED funds purchased) sold
position of $218.9 million in the second quarter of 2023 compared
 
to $361.0 million in the first quarter of 2023 and $469.4 million
in the fourth quarter of 2022.
 
The declining overnight funds position reflected growth in average
 
loans and lower average deposit
balances.
 
 
At June 30, 2023, we had the ability to generate approximately $1.506
 
billion (excludes overnight funds position of $285 million) in
additional liquidity through various sources including various federal
 
funds purchased lines, Federal Home Loan Bank borrowings,
the Federal Reserve Discount Window,
 
and through brokered deposits.
 
We also view our
 
investment portfolio as a liquidity source and have the option to pledge securities in our
 
portfolio as collateral for
borrowings or deposits, and/or to sell selected securities.
 
Our portfolio consists of debt issued by the U.S. Treasury,
 
U.S.
governmental agencies, municipal governments, and corporate
 
entities.
 
At June 30, 2023, the weighted-average maturity and
duration of our portfolio were 3.07 years and 2.76 years, respectively
 
,
 
and the available-for-sale portfolio had a net unrealized pre-
tax loss of $28.5 million.
 
Capital
Shareowners’ equity was $420.8 million at June 30, 2023 compared
 
to $411.2 million at March 31, 2023 and $394.0
 
million at
December 31, 2022.
 
For the first six months of 2023, shareowners’ equity was positively impacted by net
 
income attributable to
common shareowners of $29.5 million, a $4.2 million decrease in the unrealized
 
loss on investment securities, the issuance of stock
of $2.1 million, and stock compensation accretion of $0.5
 
million.
 
Shareowners’ equity was reduced by common stock dividends of
$6.1 million ($0.36 per share), the repurchase of stock of $2.0 million (65,736
 
shares), net adjustments totaling $1.2
 
million related
to transactions under our stock compensation plans,
 
and a $0.2 million decrease in the fair value of the interest rate swap related to
subordinated debt.
At June 30, 2023, our total risk-based capital ratio was 15.95% compared to 15.53%
 
at March 31, 2023 and 15.52% at December
31, 2022.
 
Our common equity tier 1 capital ratio was 13.02%, 12.68%, and 12.64%, respectively,
 
on these dates.
 
Our leverage ratio
was 9.74%, 9.28%, and 9.06%, respectively,
 
on these dates.
 
At June 30, 2023, all 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 7.61% at June 30, 2023 compared to 7.37% and 6.79% at March 31, 2023
 
and December 31, 2022, respectively.
 
If our
unrealized HTM securities losses of $30.0 million (after-tax)
 
were recognized in accumulated other comprehensive loss, our
adjusted tangible capital ratio would be 6.91%.
5
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 $4.4 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 62 banking offices and 99 ATM
 
s/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 words “may,” “could,” “should,”
 
“would,” “believe,”
“anticipate,” “estimate,” “expect,” “intend,” “plan,” “target,” “vision,”
 
“goal,” and similar expressions are intended to identify
forward-looking statements. The following factors, among others, could cause our actual
 
results to differ: our ability to successfully
manage credit risk, interest rate risk, liquidity risk, and other risks inherent
 
to our industry; legislative or regulatory changes; adverse
developments in the financial services industry generally,
 
such as the recent bank failures and any related impacts on depositor
behavior; the effects of changes in the level of checking or
 
savings account deposits and the competition for deposits on our funding
costs, net interest margin and ability to replace maturing deposits and
 
advances, as necessary; the effects of actions taken
 
by
governmental agencies to stabilize the financial system and the effectiveness
 
of such actions; changes in monetary and fiscal policies
of the U.S. Government; inflation, interest rate, market and monetary fluctuations;
 
the effects of security breaches and computer
viruses that may affect our computer systems or fraud related
 
to debit card products; the accuracy of our financial statement
estimates and assumptions, including the estimates used for our
 
allowance for credit losses, deferred tax asset valuation and pension
plan; changes in our liquidity position; changes in accounting principles, policies,
 
practices or guidelines; the frequency and
magnitude of foreclosure of our loans; the effects of our
 
lack of a diversified loan portfolio, including the risks of loan segments,
geographic and industry concentrations; the strength of the United
 
States economy in general and the strength of the local economies
in which we conduct operations; our ability to declare and pay dividends,
 
the payment of which is subject to our capital
requirements; changes in the securities and real estate markets; structural changes
 
in the markets for origination, sale and servicing
of residential mortgages; uncertainty in the pricing of residential mortgage
 
loans that we sell, as well as competition for the mortgage
servicing rights related to these loans and related interest rate risk or price risk resulting
 
from retaining mortgage servicing rights and
the potential effects of higher interest rates on our loan origination
 
volumes; the effect of corporate restructuring, acquisitions
 
or
dispositions, including the actual restructuring and other related charges
 
and the failure to achieve the expected gains, revenue
growth or expense savings from such corporate restructuring, acquisitions
 
or dispositions; the effects of natural disasters, harsh
weather conditions (including hurricanes), widespread health emergencies
 
(including pandemics, such as the COVID-19 pandemic),
military conflict, terrorism, civil unrest or other geopolitical events; our
 
ability to comply with the extensive laws and regulations to
which we are subject, including the laws for each jurisdiction where we operate;
 
the willingness of clients to accept third-party
products and services rather than our products and services and vice versa; increased
 
competition and its effect on pricing;
technological changes; the outcomes of litigation or regulatory proceedings;
 
negative publicity and the impact on our reputation;
changes in consumer spending and saving habits; growth and profitability
 
of our noninterest income; the limited trading activity of
our common stock; the concentration of ownership of our common
 
stock; anti-takeover provisions under federal and state law as
well as our Articles of Incorporation and our Bylaws; other risks described from
 
time to time in our filings with the Securities and
Exchange Commission; 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, 2022, 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.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
6
USE OF NON-GAAP FINANCIAL MEASURES
Unaudited
We present a tangible
 
common equity ratio and a tangible book value per diluted share that removes the
 
effect of goodwill and other
intangibles 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, 2023
Mar 31, 2023
Dec 31, 2022
Sep 30, 2022
Jun 30, 2022
Shareowners' Equity (GAAP)
$
420,779
$
411,240
$
394,016
$
373,165
$
371,675
Less: Goodwill and Other Intangibles (GAAP)
93,013
93,053
93,093
93,133
93,173
Tangible Shareowners' Equity (non-GAAP)
A
327,766
318,187
300,923
280,032
278,502
Total Assets (GAAP)
4,399,563
4,409,742
4,525,958
4,332,671
4,354,297
Less: Goodwill and Other Intangibles (GAAP)
93,013
93,053
93,093
93,133
93,173
Tangible Assets (non-GAAP)
B
$
4,306,550
$
4,316,689
$
4,432,865
$
4,239,538
$
4,261,124
Tangible Common Equity Ratio (non-GAAP)
A/B
7.61%
7.37%
6.79%
6.61%
6.54%
Actual Diluted Shares Outstanding (GAAP)
C
17,026,360
17,049,913
17,039,401
16,998,177
16,981,614
Tangible Book Value
 
per Diluted Share (non-GAAP)
A/C
$
19.25
$
18.66
$
17.66
$
16.47
$
16.40
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
7
CAPITAL CITY BANK
 
GROUP,
 
INC.
EARNINGS HIGHLIGHTS
Unaudited
Three Months Ended
Six Months Ended
(Dollars in thousands, except per share data)
Jun 30, 2023
Mar 31, 2023
Jun 30, 2022
Jun 30, 2023
Jun 30, 2022
EARNINGS
Net Income Attributable to Common Shareowners
$
14,551
$
14,954
$
8,713
29,505
$
17,168
Diluted Net Income Per Share
$
0.85
$
0.88
$
0.51
1.73
$
1.01
PERFORMANCE
Return on Average Assets (annualized)
1.35
%
1.37
%
0.81
%
1.36
%
0.81
%
Return on Average Equity (annualized)
13.94
15.01
9.36
14.46
9.14
Net Interest Margin
4.05
4.04
2.87
4.04
2.71
Noninterest Income as % of Operating Revenue
36.38
35.52
46.78
35.95
48.89
Efficiency Ratio
67.55
%
64.48
%
75.96
%
66.02
%
76.73
%
CAPITAL ADEQUACY
Tier 1 Capital
 
14.84
%
14.51
%
15.13
%
14.84
%
15.13
%
Total Capital
 
15.95
15.53
16.07
15.95
16.07
Leverage
 
9.74
9.28
8.77
9.74
8.77
Common Equity Tier 1
13.02
12.68
13.07
13.02
13.07
Tangible Common Equity
(1)
7.61
7.37
6.54
7.61
6.54
Equity to Assets
9.56
%
9.33
%
8.54
%
9.56
%
8.54
%
ASSET QUALITY
Allowance as % of Non-Performing Loans
422.23
%
577.63
%
677.57
%
422.23
%
677.57
%
Allowance as a % of Loans HFI
1.05
1.01
0.96
1.05
0.96
Net Charge-Offs as % of Average Loans HFI
0.07
0.24
0.22
0.15
0.19
Nonperforming Assets as % of Loans HFI and OREO
0.25
0.17
0.15
0.25
0.15
Nonperforming Assets as % of Total Assets
0.15
%
0.10
%
0.07
%
0.15
%
0.07
%
STOCK PERFORMANCE
High
 
$
34.16
$
36.86
$
28.55
36.86
$
28.88
Low
28.03
28.18
24.43
28.03
24.43
Close
$
30.64
$
29.31
$
27.89
30.64
$
27.89
Average Daily Trading Volume
33,412
41,737
25,342
37,574
24,681
(1)
 
Tangible common equity ratio is a non-GAAP financial measure. For additional information, including a
reconciliation to GAAP, refer to Page 6.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
8
CAPITAL CITY BANK GROUP, INC.
CONSOLIDATED STATEMENT
 
OF FINANCIAL CONDITION
Unaudited
2023
2022
(Dollars in thousands)
Second Quarter
First Quarter
Fourth Quarter
Third Quarter
Second Quarter
ASSETS
Cash and Due From Banks
$
83,679
$
84,549
$
72,114
$
72,686
$
91,209
Funds Sold and Interest Bearing Deposits
285,129
303,403
528,536
497,679
603,315
Total Cash and Cash Equivalents
368,808
387,952
600,650
570,365
694,524
Investment Securities Available for Sale
386,220
402,943
413,294
416,745
601,405
Investment Securities Held to Maturity
641,398
651,755
660,744
676,178
528,258
Other Equity Securities
1,703
1,883
10
1,349
900
 
Total Investment Securities
1,029,321
1,056,581
1,074,048
1,094,272
1,130,563
Loans Held for Sale
 
67,908
55,118
54,635
50,304
48,708
Loans Held for Investment ("HFI"):
Commercial, Financial, & Agricultural
227,219
236,263
247,362
246,304
247,902
Real Estate - Construction
226,404
253,903
234,519
237,718
225,664
Real Estate - Commercial
831,285
798,438
782,557
715,870
699,093
Real Estate - Residential
876,867
827,124
721,759
573,963
478,121
Real Estate - Home Equity
203,150
207,241
208,120
202,512
194,658
Consumer
295,646
305,324
324,450
347,949
359,906
Other Loans
5,425
7,660
5,346
20,822
6,854
Overdrafts
1,007
931
1,067
1,047
1,455
Total Loans Held for Investment
2,667,003
2,636,884
2,525,180
2,346,185
2,213,653
Allowance for Credit Losses
(27,964)
(26,507)
(24,736)
(22,510)
(21,281)
Loans Held for Investment, Net
2,639,039
2,610,377
2,500,444
2,323,675
2,192,372
Premises and Equipment, Net
82,062
82,055
82,138
81,736
82,932
Goodwill and Other Intangibles
93,013
93,053
93,093
93,133
93,173
Other Real Estate Owned
1
13
431
13
90
Other Assets
119,411
124,593
120,519
119,173
111,935
Total Other Assets
294,487
299,714
296,181
294,055
288,130
Total Assets
$
4,399,563
$
4,409,742
$
4,525,958
$
4,332,671
$
4,354,297
LIABILITIES
Deposits:
Noninterest Bearing Deposits
$
1,520,134
$
1,601,388
$
1,653,620
$
1,737,046
$
1,724,671
NOW Accounts
1,269,839
1,242,721
1,290,494
990,021
1,036,757
Money Market Accounts
321,743
271,880
267,383
292,932
289,337
Savings Accounts
590,245
617,310
637,374
646,526
639,594
Certificates of Deposit
86,905
90,621
90,446
92,853
95,899
Total Deposits
3,788,866
3,823,920
3,939,317
3,759,378
3,786,258
Repurchase Agreements
22,619
4,429
6,583
6,943
3,807
Other Short-Term Borrowings
28,054
22,203
50,210
45,328
35,656
Subordinated Notes Payable
52,887
52,887
52,887
52,887
52,887
Other Long-Term Borrowings
414
463
513
562
612
Other Liabilities
77,192
85,878
73,675
84,657
93,319
Total Liabilities
3,970,032
3,989,780
4,123,185
3,949,755
3,972,539
Temporary Equity
8,752
8,722
8,757
9,751
10,083
SHAREOWNERS' EQUITY
Common Stock
170
170
170
170
170
Additional Paid-In Capital
36,853
37,512
37,331
36,234
35,738
Retained Earnings
417,128
405,634
393,744
384,964
376,532
Accumulated Other Comprehensive Loss, Net of Tax
(33,372)
(32,076)
(37,229)
(48,203)
(40,765)
Total Shareowners' Equity
420,779
411,240
394,016
373,165
371,675
Total Liabilities, Temporary Equity and Shareowners' Equity
$
4,399,563
$
4,409,742
$
4,525,958
$
4,332,671
$
4,354,297
OTHER BALANCE SHEET DATA
Earning Assets
$
4,049,361
$
4,051,987
$
4,182,399
$
3,988,440
$
3,996,238
Interest Bearing Liabilities
2,350,087
2,298,085
2,389,307
2,121,109
2,150,742
Book Value Per Diluted Share
$
24.71
$
24.12
$
23.12
$
21.95
$
21.89
Tangible Book Value
 
Per Diluted Share
(1)
19.25
18.66
17.66
16.47
16.40
Actual Basic Shares Outstanding
16,992
17,022
16,987
16,962
16,959
Actual Diluted Shares Outstanding
17,026
17,050
17,039
16,998
16,982
(1)
 
Tangible book value per diluted share is a non-GAAP financial measure. For additional
 
information, including a reconciliation to GAAP, refer to Page 6.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
9
CAPITAL CITY BANK
 
GROUP,
 
INC.
CONSOLIDATED STATEMENT
 
OF OPERATIONS
Unaudited
2023
2022
Six Months Ended
June 30,
(Dollars in thousands, except per share data)
Second
Quarter
First
Quarter
Fourth
Quarter
Third
Quarter
Second
Quarter
2023
2022
INTEREST INCOME
Loans, including Fees
$
37,477
$
34,880
$
31,916
$
27,761
$
24,072
$
72,357
$
46,205
Investment Securities
4,815
4,924
4,847
4,372
3,840
9,739
6,736
Federal Funds Sold and Interest Bearing Deposits
2,782
4,111
4,463
3,231
1,408
6,893
1,817
Total Interest Income
45,074
43,915
41,226
35,364
29,320
88,989
54,758
INTEREST EXPENSE
Deposits
4,008
2,488
1,902
1,052
266
6,496
490
Repurchase Agreements
115
9
7
5
-
124
1
Other Short-Term Borrowings
336
452
683
531
343
788
534
Subordinated Notes Payable
604
571
522
443
370
1,175
687
Other Long-Term Borrowings
5
6
8
6
8
11
17
Total Interest Expense
5,068
3,526
3,122
2,037
987
8,594
1,729
Net Interest Income
40,006
40,389
38,104
33,327
28,333
80,395
53,029
Provision for Credit Losses
2,219
3,130
3,521
2,099
1,542
5,349
1,542
Net Interest Income after Provision for Credit Losses
37,787
37,259
34,583
31,228
26,791
75,046
51,487
NONINTEREST INCOME
Deposit Fees
5,326
5,239
5,536
5,947
5,447
10,565
10,638
Bank Card Fees
3,795
3,726
3,744
3,860
4,034
7,521
7,797
Wealth Management Fees
4,149
3,928
3,649
3,937
4,403
8,077
10,473
Mortgage Banking Revenues
5,837
6,995
5,497
7,116
9,065
12,832
18,011
Other
 
3,766
2,360
2,546
2,074
1,954
6,126
3,802
Total Noninterest Income
22,873
22,248
20,972
22,934
24,903
45,121
50,721
NONINTEREST EXPENSE
Compensation
24,884
25,636
25,565
24,738
25,383
50,520
50,239
Occupancy, Net
6,820
6,762
6,253
6,153
6,075
13,582
12,168
Other
 
10,830
8,057
10,469
8,919
9,040
18,887
17,324
Total Noninterest Expense
42,534
40,455
42,287
39,810
40,498
82,989
79,731
OPERATING PROFIT
18,126
19,052
13,268
14,352
11,196
37,178
22,477
Income Tax Expense
3,544
4,133
2,599
3,074
2,177
7,677
4,412
Net Income
14,582
14,919
10,669
11,278
9,019
29,501
18,065
Pre-Tax Loss (Income) Attributable to Noncontrolling Interest
(31)
35
995
37
(306)
4
(897)
NET INCOME ATTRIBUTABLE
 
TO
 
COMMON SHAREOWNERS
$
14,551
$
14,954
$
11,664
$
11,315
$
8,713
$
29,505
$
17,168
PER COMMON SHARE
Basic Net Income
$
0.86
$
0.88
$
0.69
$
0.67
$
0.51
$
1.73
$
1.01
Diluted Net Income
0.85
0.88
0.68
0.67
0.51
1.73
1.01
Cash Dividend
 
$
0.18
$
0.18
$
0.17
$
0.17
$
0.16
$
0.36
$
0.32
AVERAGE
 
SHARES
Basic
 
17,002
17,016
16,963
16,960
16,949
17,009
16,940
Diluted
 
17,036
17,045
17,016
16,996
16,971
17,041
16,958
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
10
CAPITAL CITY BANK GROUP,
 
INC.
ALLOWANCE FOR CREDIT LOSSES ("ACL")
AND CREDIT QUALITY
Unaudited
2023
2022
Six Months Ended
June 30,
(Dollars in thousands, except per share data)
Second
Quarter
First
Quarter
Fourth
Quarter
Third
Quarter
Second
Quarter
2023
2022
ACL - HELD FOR INVESTMENT LOANS
Balance at Beginning of Period
$
26,507
$
24,736
$
22,510
$
21,281
$
20,756
$
24,736
$
21,606
Provision for Credit Losses
1,944
3,291
3,543
1,931
1,670
5,235
1,591
Net Charge-Offs (Recoveries)
487
1,520
1,317
702
1,145
2,007
1,916
Balance at End of Period
$
27,964
$
26,507
$
24,736
$
22,510
$
21,281
$
27,964
$
21,281
As a % of Loans HFI
1.05%
1.01%
0.98%
0.96%
0.96%
1.05%
0.96%
As a % of Nonperforming Loans
422.23%
577.63%
1,076.89%
934.53%
677.57%
422.23%
677.57%
ACL - UNFUNDED COMMITMENTS
Balance at Beginning of Period
2,833
$
2,989
$
3,012
$
2,853
$
2,976
$
2,989
$
2,897
Provision for Credit Losses
 
287
(156)
(23)
159
(123)
131
(44)
Balance at End of Period
(1)
3,120
2,833
2,989
3,012
2,853
3,120
2,853
ACL - DEBT SECURITIES
Provision for Credit Losses
 
$
(12)
$
(5)
$
1
$
9
$
(5)
$
(17)
$
(5)
CHARGE-OFFS
Commercial, Financial and Agricultural
$
54
$
164
$
129
$
2
$
1,104
$
218
$
1,177
Real Estate - Construction
-
-
-
-
-
-
-
Real Estate - Commercial
-
120
88
1
-
120
266
Real Estate - Home Equity
39
-
160
-
-
39
33
Consumer
993
1,732
976
770
533
2,725
1,155
Overdrafts
894
634
720
989
660
1,528
1,440
Total Charge-Offs
$
1,980
$
2,650
$
2,073
$
1,762
$
2,297
$
4,630
$
4,071
RECOVERIES
Commercial, Financial and Agricultural
$
71
$
95
$
25
$
58
$
59
$
166
$
224
Real Estate - Construction
1
1
-
2
-
2
8
Real Estate - Commercial
11
8
13
8
56
19
85
Real Estate - Residential
132
57
98
44
115
189
142
Real Estate - Home Equity
131
25
36
22
67
156
125
Consumer
514
571
175
260
453
1,085
636
Overdrafts
633
373
409
666
402
1,006
935
Total Recoveries
$
1,493
$
1,130
$
756
$
1,060
$
1,152
$
2,623
$
2,155
NET CHARGE-OFFS (RECOVERIES)
$
487
$
1,520
$
1,317
$
702
$
1,145
$
2,007
$
1,916
Net Charge-Offs as a % of Average Loans
 
HFI
(2)
0.07%
0.24%
0.21%
0.12%
0.22%
0.15%
0.19%
CREDIT QUALITY
Nonaccruing Loans
$
6,623
$
4,589
$
2,297
$
2,409
$
3,141
Other Real Estate Owned
1
13
431
13
90
Total Nonperforming Assets ("NPAs")
$
6,624
$
4,602
$
2,728
$
2,422
$
3,231
Past Due Loans 30-89 Days
 
$
4,207
$
5,061
$
7,829
$
6,263
$
3,554
Past Due Loans 90 Days or More
-
-
-
-
-
Classified Loans
14,973
12,179
19,342
20,988
19,620
Nonperforming Loans as a % of Loans HFI
0.25%
0.17%
0.09%
0.10%
0.14%
NPAs as a % of Loans HFI and Other Real Estate
0.25%
0.17%
0.11%
0.10%
0.15%
NPAs as a % of
 
Total Assets
0.15%
0.10%
0.06%
0.06%
0.07%
(1)
 
Recorded in other liabilities
(2)
 
Annualized
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
11
CAPITAL CITY BANK GROUP,
 
INC.
AVERAGE
 
BALANCE AND INTEREST RATES
Unaudited
Second Quarter 2023
First Quarter 2023
Fourth Quarter 2022
Third Quarter 2022
Second Quarter 2022
Jun 2023 YTD
Jun 2022 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 Held for Sale
$
54,350
$
801
5.90
%
$
55,110
$
644
4.74
%
$
42,910
$
581
5.38
%
$
55,164
486
4.82
%
$
52,860
$
711
4.44
%
$
54,728
$
1,445
5.32
%
$
47,959
$
1,108
4.66
%
Loans Held for Investment
(1)
2,657,693
36,758
5.55
2,582,395
34,331
5.39
2,439,379
31,418
5.11
2,264,075
27,354
4.76
2,084,679
23,433
4.53
2,620,252
71,089
5.47
2,024,463
45,244
4.51
Investment Securities
Taxable Investment Securities
1,041,202
4,804
1.84
1,061,372
4,912
1.86
1,078,265
4,835
1.78
1,117,789
4,359
1.55
1,142,269
3,834
1.34
1,051,232
9,716
1.85
1,099,739
6,723
1.22
Tax-Exempt Investment Securities
(1)
2,656
16
2.47
2,840
17
2.36
2,827
17
2.36
2,939
17
2.30
2,488
10
1.73
2,747
33
2.41
2,449
20
1.67
Total Investment Securities
1,043,858
4,820
1.84
1,064,212
4,929
1.86
1,081,092
4,852
1.78
1,120,728
4,376
1.55
1,144,757
3,844
1.34
1,053,979
9,749
1.85
1,102,188
6,743
1.23
Federal Funds Sold and Interest Bearing
Deposits
218,902
2,782
5.10
360,971
4,111
4.62
469,352
4,463
3.77
569,984
3,231
2.25
691,925
1,408
0.82
289,543
6,893
4.80
782,011
1,817
0.47
Total Earning Assets
3,974,803
$
45,161
4.56
%
4,062,688
$
44,015
4.39
%
4,032,733
$
41,314
4.07
%
4,009,951
$
35,447
3.51
%
3,974,221
$
29,396
2.97
%
4,018,502
$
89,176
4.47
%
3,956,621
$
54,912
2.80
%
Cash and Due From Banks
75,854
74,639
74,178
79,527
79,730
75,250
77,007
Allowance for Credit Losses
(27,893)
(25,637)
(22,596)
(21,509)
(20,984)
(26,771)
(21,318)
Other Assets
297,837
300,175
297,510
289,709
288,421
298,999
281,922
Total Assets
$
4,320,601
$
4,411,865
$
4,381,825
$
4,357,678
$
4,321,388
$
4,365,980
$
4,294,232
LIABILITIES:
Noninterest Bearing Deposits
$
1,539,877
$
1,601,750
$
1,662,443
$
1,726,918
$
1,722,325
$
1,570,642
$
1,687,524
NOW Accounts
1,200,400
$
3,038
1.01
%
1,228,928
$
2,152
0.71
%
1,133,733
$
1,725
0.60
%
1,016,475
$
868
0.34
%
1,033,190
$
120
0.05
%
1,214,585
$
5,190
0.86
%
1,056,419
$
206
0.04
%
Money Market Accounts
288,466
747
1.04
267,573
208
0.31
273,328
63
0.09
288,758
71
0.10
286,210
36
0.05
278,077
955
0.69
285,810
69
0.05
Savings Accounts
602,848
120
0.08
629,388
76
0.05
641,153
80
0.05
643,640
80
0.05
628,472
77
0.05
616,045
196
0.06
613,996
149
0.05
Time Deposits
87,973
103
0.47
89,675
52
0.24
92,385
34
0.15
94,073
33
0.14
95,132
33
0.14
88,819
155
0.35
96,088
66
0.14
Total Interest Bearing Deposits
2,179,687
4,008
0.74
2,215,564
2,488
0.46
2,140,599
1,902
0.35
2,042,946
1,052
0.20
2,043,004
266
0.05
2,197,526
6,496
0.60
2,052,313
490
0.05
Total Deposits
3,719,564
4,008
0.43
3,817,314
2,488
0.26
3,803,041
1,902
0.20
3,769,864
1,052
0.11
3,765,328
266
0.03
3,768,169
6,496
0.35
3,739,837
490
0.03
Repurchase Agreements
17,888
115
2.58
9,343
9
0.37
8,464
7
0.34
11,665
5
0.18
5,064
0
0.03
13,639
124
1.83
6,093
1
0.03
Other Short-Term Borrowings
17,834
336
7.54
37,766
452
4.86
42,380
683
6.39
35,014
531
6.01
26,718
343
5.15
27,745
788
5.73
25,973
534
4.14
Subordinated Notes Payable
52,887
604
4.52
52,887
571
4.32
52,887
522
3.86
52,887
443
3.28
52,887
370
2.76
52,887
1,175
4.42
52,887
687
2.58
Other Long-Term Borrowings
431
5
4.80
480
6
4.80
530
8
4.80
580
6
4.74
722
8
4.54
455
11
4.80
777
17
4.51
Total Interest Bearing Liabilities
2,268,727
$
5,068
0.90
%
2,316,040
$
3,526
0.62
%
2,244,860
$
3,122
0.55
%
2,143,092
$
2,037
0.38
%
2,128,395
$
987
0.19
%
2,292,252
$
8,594
0.76
%
2,138,043
$
1,729
0.16
%
Other Liabilities
84,305
81,206
84,585
98,501
87,207
82,765
79,728
Total Liabilities
3,892,909
3,998,996
3,991,888
3,968,511
3,937,927
3,945,659
3,905,295
Temporary Equity
8,935
8,802
9,367
9,862
10,096
8,869
10,306
SHAREOWNERS' EQUITY:
418,757
404,067
380,570
379,305
373,365
411,452
378,631
Total Liabilities, Temporary
 
Equity and
Shareowners' Equity
$
4,320,601
$
4,411,865
$
4,381,825
$
4,357,678
$
4,321,388
$
4,365,980
$
4,294,232
Interest Rate Spread
$
40,093
3.66
%
$
40,489
3.77
%
$
38,192
3.52
%
$
33,410
3.13
%
$
28,409
2.78
%
$
80,582
3.72
%
$
53,183
2.64
%
Interest Income and Rate Earned
(1)
45,161
4.56
44,015
4.39
41,314
4.07
35,447
3.51
29,396
2.97
89,176
4.47
54,912
2.80
Interest Expense and Rate Paid
(2)
5,068
0.51
3,526
0.35
3,122
0.31
2,037
0.20
987
0.10
8,594
0.43
1,729
0.09
Net Interest Margin
$
40,093
4.05
%
$
40,489
4.04
%
$
38,192
3.76
%
$
33,410
3.31
%
$
28,409
2.87
%
$
80,582
4.04
%
$
53,183
2.71
%
(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.