SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q Quarterly Report Under Section 13 or 15(d) of the Securities Exchange Act of 1934 For the Quarter: March 31, 1994 Commission File Number 0-13358 CAPITAL CITY BANK GROUP, INC. (Exact name of registrant as specified in its charter) Florida 59 2273542 (State or other jurisdiction of (I.R.S. Employer Identification No.) incorporation or organization) 217 North Monroe Street, Tallahassee, Florida 32301 (Address of principal executive offices) (Zip Code) Registrant's telephone number, including area code: (904) 224-1171 Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirement for the past 90 days. Yes __X___ No _____ At April 30, 1994, 2,845,715 shares of the Registrant's Common Stock, $.01 par value, were outstanding. CAPITAL CITY BANK GROUP, INC. I N D E X PART I. FINANCIAL INFORMATION PAGE NUMBER Consolidated Statements of Condition -- March 31, 1994 and December 31, 1993 3 Consolidated Statements of Income -- Three Months Ended March 31, 1994 4 and 1993 Consolidated Statements of Cash Flows -- Three Months Ended March 31, 1994 and 1993 5 Notes to Consolidated Financial Statements 6 Management's Discussion and Analysis of Financial Condition and Results of Operations 8 PART II. OTHER INFORMATION Index to Exhibits 14 Signatures 14 PART I. FINANCIAL INFORMATION ITEM I. FINANCIAL STATEMENTS CAPITAL CITY BANK GROUP, INC. CONSOLIDATED STATEMENTS OF CONDITION AS OF MARCH 31, 1994 AND DECEMBER 31, 1993 (Dollars In Thousands, Except Per Share Amounts) March 31, December 31, 1994 1993 (Unaudited) (Audited) ASSETS Cash & Due From Banks $58,485 $56,665 Interest Bearing Deposits at Banks 603 1,257 Investment Securities, Market Value $218,714 and $221,274 as of March 31, 1994 and December 31, 1993, respectively (Note 2) 219,835 218,623 Federal Funds Sold 47,870 55,970 Loans: (Note 3) 400,233 406,567 Unearned Interest (6,453) (7,143) Allowance for Loan Losses (7,770) (7,594) Loans, Net 386,010 391,830 Premises & Equipment 21,829 20,820 Accrued Interest Receivable 5,380 5,467 Intangible Assets 1,628 1,719 Other Assets 8,152 9,984 TOTAL ASSETS $749,792 $762,335 LIABILITIES Deposits: Noninterest Bearing Deposits $165,138 $171,985 Interest Bearing Deposits (Note 4) 493,722 490,760 Total Deposits 658,860 662,745 Federal Funds Purchased and Securities Sold Under Repurchase Agreements 14,907 23,264 Other Short-Term Borrowings l,000 1,202 Long-Term Debt 1,400 1,900 Other Liabilities 4,255 6,084 TOTAL LIABILITIES 680,422 695,195 SHAREHOLDERS' EQUITY Common Stock, $.01 Par Value; 4,000,000 shares authorized; 3,105,243 issued 31 31 Surplus 5,852 5,857 Unrealized Gains and Losses (177) - Retained Earnings 70,103 67,753 75,809 73,641 Treasury Stock: 253,709 shares at March 31, 1994 and 255,927 at December 31, 1993 (6,439) (6,501) TOTAL SHAREHOLDERS' EQUITY 69,370 67,140 TOTAL LIABILITIES & SHAREHOLDERS' EQUITY $749,792 $762,335 Book Value Per Share $24.33 $23.56 CAPITAL CITY BANK GROUP, INC. CONSOLIDATED STATEMENTS OF INCOME FOR THE PERIODS ENDED MARCH 31 (Dollars in Thousands, Except Per Share Amounts) 1994 1993 Unaudited Unaudited INTEREST INCOME Interest and Fees on Loans $8,271 $7,961 Investment Securities: U. S. Treasury 942 1,448 U. S. Government Agencies/Corp. 843 397 States and Political Subdivisions 882 846 Other Securities 80 54 Interest on Deposits in Other Banks 9 28 Federal Funds Sold 375 517 Total Interest Income 11,402 11,251 INTEREST EXPENSE Deposits 3,303 3,660 Fed. Funds Purchased & Securities Sold Under Repurchase Agreements 143 133 Long-Term Borrowings 20 20 Other Short-Term Debt 6 7 Total Interest Expense 3,472 3,820 Net Interest Income 7,930 7,431 Provision for Loan Losses 330 371 Net Interest Income After Provision for Loan Losses 7,600 7,060 NONINTEREST INCOME Income from Fiduciary Activities 191 177 Service Charges on Deposit Accounts 1,303 1,377 Data Processing 593 542 Securities Transactions (1) 8 Other 1,461 731 Total Noninterest Income 3,547 2,835 NONINTEREST EXPENSE Salaries and Employee Benefits 4,252 3,893 Occupancy, Net 554 488 Furniture and Equipment 680 697 Other 2,413 2,105 Total Noninterest Expense 7,899 7,183 Income Before Income Tax and Accounting Change 3,248 2,712 Income Tax Expense 898 736 Income Before Accounting Change 2,350 1,976 Cumulative Effect of a Change in Accounting Principle - (484) NET INCOME $2,350 $1,492 Net Income Per Share Before Accounting Change $ .82 $ .68 Net Income Per Share $ .82 $ .51 Cash Dividends Per Share -- -- Average Shares Outstanding 2,851,016 2,925,845 CAPITAL CITY BANK GROUP, INC. STATEMENT OF CASH FLOWS FOR THE PERIODS ENDED MARCH 31 (Dollars in Thousands) 1994 1993 (Unaudited) (Unaudited) NET INCOME $2,350 $l,492 Adjustments to Reconcile Net Income to Cash Provided by Operating Activities: Provision for Loan Losses 330 371 Depreciation 421 446 Amortization of Intangible Assets 91 66 Cumulative Effect of Accounting Change -- 484 Net (Increase) Decrease in Interest Receivable 87 (70) Net (Increase) Decrease in Other Assets 1,890 (58) Net Increase (Decrease) in Other Liabilities 304 654 Net Cash From Operating Activities 5,473 3,385 CASH FLOWS FROM INVESTING ACTIVITIES: Proceeds from Payments/Maturities of Investment Securities 22,591 18,949 Purchase of Investment Securities (23,980) (32,805) Net (Increase) Decrease in Loans 5,490 3,838 Purchase of Premises & Equipment (1,486) (329) Sales of Premises & Equipment 56 2 Cash Acquired in Bank Acquisitions - 28,811 Net Cash from Investing Activities 2,671 18,466 CASH FLOWS FROM FINANCING ACTIVITIES: Net Increase (Decrease) in Deposits (3,885) (3,099) Net Increase (Decrease) in Federal Funds Purchased (8,357) 3,773 Net Increase (Decrease) in Other Borrowed Funds (202) (5) Proceeds from Long-Term Debt - - Repayment of Long-Term Debt (500) (500) Dividends Paid (2,134) (1,990) Sale (Purchase) of Treasury Stock - (32) Net Cash From Financing Activities (15,078) (1,853) Net Increase (Decrease) in Cash and Cash Equivalents (6,934) 19,998 Cash and Cash Equivalents at Beginning of Period 113,892 107,271 Cash and Cash Equivalents at End of Period $106,958 $127,269 Supplemental Disclosure: Interest Paid $ 3,414 $ 3,744 Taxes Paid $ - $ - CAPITAL CITY BANK GROUP, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (1) MANAGEMENT'S OPINION AND ACCOUNTING POLICIES The consolidated financial statements, included herein, have been prepared by the Company, without audit, pursuant to the rules and regulations of the Securities and Exchange Commission. Certain information and footnote disclosures normally included in financial statements prepared in accordance with generally accepted accounting principles have been condensed or omitted pursuant to such rules and regulations. Prior year financial statements have been reformatted and/or amounts reclassified, as necessary, to conform with the current year presentation. In the opinion of management, the consolidated financial statements contain all adjustments, which are those of a recurring nature, and disclosures necessary to present fairly the financial position of the Company as of March 31, 1994 and December 31, 1993, and the results of operations and cash flows for the three month periods ended March 31, 1994 and 1993. The Company and its subsidiaries follow generally accepted accounting principles and reporting practices applicable to the banking industry. The principles which materially affect the financial position, results of operations and cash flows are set forth in Notes to Financial Statements which are included in the Company's 1993 Annual Report and Form 10K. (2) INVESTMENT SECURITIES On January 1, 1994, the Company adopted Statement of Financial Accounting Standards No. 115 ("Accounting for Certain Investments in Debt and Equity Securities") and management transferred approximately 30% of the Company's portfolio to the "Available-for-Sale" category. Securities transferred to the Available-for-Sale category on the date the statement was adopted are as follows: Amortized Cost U. S. Treasury $31,364,293 U. S. Government Agencies and Corporations 6,246,822 States & Political Subdivisions 20,853,825 Mortgage Backed Securities 3,842,192 Other Securities 500,000 Total Available for Sale $62,807,132 Securities in this category are recorded at fair value with unrealized gains and losses, net of deferred taxes, reported as a separate component of equity capital. At the time the new accounting standard was adopted the Company recorded an unrealized gain, net of deferred taxes, of $847,000. As a result of rising interest rates, the Company had an unrealized loss of $176,675 at March 31, 1994. Prior to 1994, all securities were held for investment and carried at amortized cost. It is not management's intention nor practice to participate in the trading of securities and sales of securities have been minimal. With the recent change in accounting standards, management felt it was prudent to transfer a portion of its investment portfolio to the available-for-sale category in order to properly manage its liquidity position and interest rate risk. Securities in the available-for-sale portfolio will be recorded at fair value while securities in the held-to-maturity portfolio will continue to be carried at amortized costs. The carrying value and related market value of investment securities in the held-to-maturity and available-for-sale portfolios at March 31, 1994 and the held-for-investment portfolio at March 31, 1993 were as follows (dollars in thousands): March 31, 1994 Amortized Unrealized Unrealized Market Held-To-Maturity Cost Gains Losses Value U. S. Treasury $ 71,878 $ 85 $ 543 $ 71,420 U. S. Government Agencies and Corporations 21,572 100 389 21,283 States and Political Subdivisions 51,797 601 958 51,440 Mortgage Backed Securities 3,483 10 32 3,461 Other Securities 3,771 11 7 3,775 Total $152,501 $ 807 $l,929 $151,379 March 31, 1994 Amortized Unrealized Unrealized Market Available-For-Sale Cost Gains Losses Value U. S. Treasury $ 32,746 $ 133 $120 $32,759 U. S. Government Agencies and Corporations 7,077 6 158 6,925 States and Political Subdivisions 22,025 317 425 21,917 Mortgage Backed Securities 3,788 43 2 3,829 Other Securities 1,890 14 - 1,904 Total $ 67,526 $ 513 $705 $67,334 December 31, 1993 Amortized Unrealized Unrealized Market Held-For-Investment Cost Gains Losses Value U. S. Treasury $ 111,233 $ 578 $ 88 $111,723 U. S. Government Agencies and Corporations 26,811 185 76 26,920 States and Political Subdivisions 67,070 1,991 112 68,949 Mortgage Backed Securities 8,504 135 6 8,633 Other Securities 5,005 48 4 5,049 Total $218,623 $ 2,937 $ 286 $221,274 (3) LOANS The composition of the Company's loan portfolio at March 31, 1994 and December 31, 1993 was as follows (dollars in thousands): March 31, 1994 December 31, 1993 Commercial, Financial and Agricultural $ 40,005 $ 46,963 Real Estate-Construction 22,705 22,968 Real Estate-Mortgage 248,712 242,741 Consumer 88,811 93,895 Gross Loans $400,233 $406,567 (4) DEPOSITS The composition of the Company's interest bearing deposits at March 31, 1994 and December 31, 1993 was as follows (dollars in thousands): March 31, 1994 December 31, 1993 NOW Accounts $ 96,848 $100,184 Money Market Accounts 79,969 77,302 Savings Deposit 113,441 110,128 Other Time Deposits 203,464 203,146 Total Interest Bearing Deposits $493,722 $490,760 ITEM II. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS The following discussion sets forth the major factors that have affected the Company's financial condition and results of operations and should be read in conjunction with the accompanying financial statements. The year-to-date averages used in this report are based on daily balances for each respective period. RESULTS OF OPERATIONS Net Income Net income was $2.3 million, or $.82 per share for the first quarter of 1994, a per share increase of 60.8% over the $1.5 million, or $.51 per share for the comparable period in 1993. A one-time, non-cash charge of $484,000, or $.17 per share, associated with the adoption of Statement of Financial Accounting Standards No. 109 ("Accounting for Income Taxes") was recognized in the first quarter of 1993. Excluding this adjustment, the Company earned $2.0 million or $.68 per share. Other factors which impacted earnings include higher net interest income, gains on the sale of real estate and higher noninterest expense. Condensed statements of income for the respective periods are presented below (dollars in thousands): For The Three Months Ended March 31, 1994 1993 Interest and Dividend Income $11,402 $11,251 Taxable Equivalent Adjustment(1) 420 423 11,822 11,674 Interest Expense 3,472 3,820 Net Interest Income (FTE) 8,350 7,854 Provision for Loan Losses 330 371 Taxable Equivalent Adjustment 420 423 Net Int. Inc. After Provision 7,600 7,060 Noninterest Income 3,547 2,835 Noninterest Expense 7,899 7,183 Income Before Income Taxes and Accounting Change 3,248 2,712 Income Taxes 898 736 Income Before Accounting Change 2,350 1,976 Cumulative Effect of Accounting Change - (484) Net Income $ 2,350 $ 1,492 Percent Change Before Accounting Change 18.93% (4.50%) After Accounting Change 57.51% (27.89%) Return on Average Assets (2) Before Accounting Change 1.28% 1.15% After Accounting Change 1.28% .87% Return on Average Equity (2) Before Accounting Change 13.90% 12.52% After Accounting Change 13.90% 9.46% (1) Computed using a statutory tax rate of 34% (2) Annualized Net Interest Income First quarter taxable equivalent net interest income increased $496,000, or 6.3%, over the same period for 1993. The increase is attributable to the growth in earning assets and improvement in the interest rate spread. Table 1 on page 14 provides a comparative analysis of the Company's average balances and interest rates. Taxable-equivalent interest income increased $148,000, or 1.3%, due to growth in earning assets and a slight improvement in the mix. Average earning assets increased $38.0 million over the first quarter of 1993 due primarily to acquisitions which were consummated in March of 1993. Interest income generated through asset growth was partially offset by lower yields on earning assets. The average yield declined 34 basis points from 7.54% in the first quarter of 1993 to 7.20% in the first quarter of 1994. Although rates began to rise in the first quarter of 1994, the lower yield reflects the general decline in interest rates in recent years. Interest expense declined $348,000, or 9.1%, due to a 47 basis point decline in the average rate paid on interest bearing liabilities which fell from 3.19% in the first quarter of 1993 to 2.72% in the first quarter of 1994. The reduction in average rate paid is attributable to lower interest rates and a slight shift in the deposit mix. Certificates of deposits, which generally represent a higher cost of funds than other deposit instruments, declined as a percent of average deposits from 33.6% in the first quarter of 1993 to 32.1% in the first quarter of 1994, while noninterest bearing deposits increased from 22.9% to 23.6%. This shift in mix helped to reduce the overall cost of funds. The Company's interest rate spread (defined as the average taxable equivalent yield on earning assets less the average rate paid on interest bearing liabilities) increased from 4.35% in the first quarter of 1993 to 4.48% in the comparable quarter for 1994. The Company's net interest margin percentage (defined as taxable-equivalent net interest income divided by average earning assets) increased from 5.05% in the first quarter of 1993 to 5.08% in 1994. In the current interest rate environment, it will be difficult for management to maintain these relatively strong margins. Provisions for Loan Losses The provision for loan losses for the three months ended March 31, 1994, was $330,000 versus $371,000 for the first quarter of 1993. The provision of $330,000 exceeded net charge-offs of $154,000 and increased the reserve to $7.8 million, or l.97%, of total loans at March 31, 1994. Charge-off activity for the respective periods is set forth below. Three Months Ended 1994 1993 Net Charge-Offs $154,000 $232,000 Net Charge-Offs (Annualized) as a percent of Average Loans Outstanding, Net of Unearned Interest .16% .26% Noninterest Income Noninterest income increased $712,000, or 25.1%, over the first quarter of 1993. A majority of the increase is attributable to gains on the sale of real estate and mortgage origination fees. During the first quarter, the Company recognized gains, primarily from the sale of other real estate, totalling $340,000 which represented a $334,000 increase over the comparable period for 1993. Mortgage origination fees increased $108,000, or 70.4%, on an increase in mortgage origination volume of $7.1 million, or 86.1%. Credit card merchant fees were up $80,000, or 29.4%, reflecting an increase in the number of accounts and higher volume. Service charges on deposit accounts declined $74,000, or 5.4%, which is a continuation of the decline experienced during 1993. The decline in service charge income reflects a decrease in number of accounts, primarily transaction accounts, and a lower level of activity subject to service charge assessments. Noninterest income as a percent of average earning assets was 2.2% for the first quarter of 1994 versus 1.8% for the comparable quarter in 1993. Noninterest Expense Noninterest expense in the first quarter of 1994 increased $716,000, or 10.0%, over the first quarter of 1993. Compensation expense increased $359,000, or 9.2%, reflecting additional personnel expense associated with the new branches acquired in March of 1993, an increase in commission-based pay tied to mortgage origination volume and higher pension expense. A revision in the Plan's rate assumptions to reflect the lower level of interest rates contributed to the overall increase in pension expense. Occupancy expense, including premises, furniture, fixtures and equipment increased $49,000, or 4.l%. The increase attributable to the new branch facilities was partially offset by a reduction in depreciation as certain pieces of data processing equipment have become fully depreciated. With the recent renovation of First National's main facility and purchase of an operations center, which is expected to go on line in the third quarter, management is projecting an increase in depreciation expense during the latter part of 1994. Other noninterest expense increased $308,000 or 14.6%. A significant portion of the increase is attributable to the operation of the new branches. Additionally, commission and service fees were up substantially due to higher costs associated with credit card processing. Net noninterest expense (noninterest income minus noninterest expense) as a percent of average earning assets was 2.65% in the first quarter of 1994 versus 2.81% for the first quarter of 1993. The decrease in this percentage is primarily attributable to nonrecurring gains recognized during the first quarter of 1994. Income Taxes The provision for income taxes increased $162,000, or 22.0%, over the first quarter of 1993. The increase in the provision is attributable to higher taxable income. The Company's effective tax rate for the first quarter of 1994 was 27.6% compared to 27.1% for the same quarter in 1993. During the first quarter of 1993, he Company adopted Statement of Financial Accounting Standards NO. 109, "Accounting for Income Taxes", which changed the accounting for income taxes to the "liability" method from the "deferral" method previously required by Accounting Principals Board Opinion No. 11. A tax expense of $484,000 resulting from the cumulative effect of adopting this new standard is included in net income for the first quarter of 1993. FINANCIAL CONDITION The Company's average assets increased to $745.9 million in the first quarter of 1994 from $695.7 million in the first quarter of 1993. Average earning assets were $665.0 million for the three months ended March 31, 1994 versus $627.0 million for the comparable quarter of 1993. Relative to the first quarter of 1993, average loans and investments have increased while balances in federal funds sold have declined. Average loans are up $30.1 million, or 8.3%, of which approximately $12.0 million is attributable to loans purchased in conjunction with branch acquisitions. U.S. Government securities increased $23.8 million, or 18.4%, while municipal securities increased $13.4 million, or 22.9%. The increase in municipal securities reflects a more favorable tax-exempt market and an opportunity to extend maturities. Growth in earning assets has been funded through branch acquisitions which were consummated during the first quarter of 1993. Table I on page 14, presents average balances for the first quarter of 1994 and 1993. During the first quarter of 1994, the Company adopted Statement of Financial Accounting Standards No. 115 ("Accounting for Certain Investments in Debt and Equity Securities"). To Afford greater flexibility in managing the portfolio, management transferred approximately 30% of the portfolio to the "Available-for- Sale" category. The available-for-sale securities portfolio will enable the Company to better manage its liquidity position and interest rate risk without adversely affecting the classification of securities in the "Held-to-Maturity" portfolio, which are recorded at amortized costs. Securities in the available- for-sale portfolio are recorded at fair value with unrealized gains and losses, net of deferred taxes, reported as a separate component of equity capital. See Note 2 in Notes to Consolidated Financial Statements for further discussion. At March 31, 1994, the Company's nonperforming loans were $9.2 million versus $9.4 million at year-end and $10.3 million at March 31, 1993. As a percentage of nonperforming loans, the allowance for loan losses represented 84.7% at March 31, 1994 versus 80.6% at December 31, 1993 and 74.8% at March 31, 1993. Nonperforming loans include nonaccruing and restructured loans. Other real estate, which includes property acquired either through foreclosure or by receiving a deed in lieu of foreclosure, was $2.3 million at March 31, 1994, versus $3.5 million at December 31, 1993, and $4.1 million at March 31, 1993. Average deposits increased from $602.7 million for the first quarter of 1993, to $647.8 million for the first quarter of 1994. Relative to the first quarter of 1993, the most significant deposit growth has been noninterest bearing and NOW accounts. Average noninterest bearing deposits have increased $14.5 million, or 10.5%, and NOW accounts have increased $22.8 million, or 30.6%. The lower interest rate environment has reduced the incentive for depositors to invest in longer term, fixed rate deposits, thereby leaving higher balances in transaction accounts. The ratio of average noninterest bearing deposits to total deposits was 23.6% for the first quarter of 1994 compared to 22.9% for the first quarter of 1993. For the same periods, the ratio of average interest bearing liabilities to average earning assets was 78.0%. LIQUIDITY AND CAPITAL RESOURCES Liquidity, for a financial institution, is the availability of funds to meet increased loan demand and/or excessive deposit withdrawals. Management has implemented a financial structure that provides ready access to sufficient liquid funds to meet normal transaction requirements, take advantage of investment opportunities and cover unforeseen liquidity demands. In addition to core deposit growth, sources of funds available to meet liquidity demands for the subsidiary banks include federal funds sold, near-term loan and investment maturities and the ability to purchase federal funds through established lines of credit with correspondent banks. Additionally the Parent Company maintains two $6.0 million revolving lines of credit. As of March 31, 1994, there was $1.4 million drawn under the two facilities, leaving available credit of $10.6 million. The Company's equity capital was $69.4 million as of March 31, 1994 compared to $67.1 million as of December 31, 1993. The Company's management continues to monitor its capital position in relation to its level of assets with the objective of maintaining a strong capital position. The leverage ratio was 9.0% at March 31, 1994 versus 8.6% at December 31, 1993. Further, the Company's risk-adjusted capital ratio of l7.2% significantly exceeds the 8.0% minimum requirement under the risk-based regulatory guidelines. State and federal regulations as well as the Company's long-term debt agreements place certain restrictions on the payment of dividends by both the Company and its Group banks. At March 31, 1994, these regulations and covenants did not impair the Company's (or its Group banks') ability to declare and pay dividends or to meet other existing obligations. During the first three months of 1994, shareholders' equity increased $2.2 million, or 13.3%, on an annualized basis. At March 31, 1994, the Company's common stock had a book value of $24.33 per share compared to $23.56 at December 31, 1993. Pursuant to the Company's stock repurchase program adopted in 1989, the Company has repurchased 253,709 shares of its common stock, net of shares subsequently reissued. In the first quarter of 1994, there were no shares repurchased and 2,218 treasury shares were reissued as performance awards in accordance with the Company's Stock Incentive Plan. TABLE I AVERAGES BALANCES & INTEREST RATES (Taxable Equivalent Basis - Dollars in Thousands)
1994 1993 Average Average Average Average Balance Interest Rate Balance Interest Rate ASSETS Loans, Net of Unearned Interest $391,625 $8,276 8.57% $361,538 $7,967 8.94% Taxable Investment Securities 152,926 1,865 4.94% 129,170 l,899 5.96% Tax-Exempt Investment Securities 71,959 1,297 7.21% 58,548 1,263 8.63% Funds Sold 48,531 384 3.21% 77,785 545 2.84% Total Earning Assets 665,041 11,822 7.20% 627,041 11,674 7.54% Cash & Due From Banks 50,248 45,222 Allowance for Loan Losses (7,691) (7,818) Other Assets 38,256 31,290 TOTAL ASSETS $745,854 $695,735 LIABILITIES NOW Accounts 97,325 429 1.79% 74,540 413 2.33% Money Market Accounts 79,038 387 1.98% 73,227 435 2.49% Savings Accounts 110,933 656 2.40% 114,376 849 3.01% Other Time Deposits 207,901 1,831 3.57% 202,470 1,963 3.93% Total Int. Bearing Deposits 495,197 3,303 2.70% 464,613 3,660 3.22% Funds Purchased 20,483 143 2.84% 21,414 133 2.51% Other Borrowed Funds 1,099 6 2.33% 1,347 7 2.00% Long-Term Debt 1,858 20 4.29% 1,917 20 4.23% Total Int. Bearing Liabilities 518,637 3,472 2.72% 489,291 3,820 3.19% Noninterest Bearing Deposits 152,593 138,086 Other Liabilities 6,053 4,378 TOTAL LIABILITIES 677,283 631,755 SHAREHOLDERS' EQUITY Common Stock 31 31 Surplus 5,854 5,857 Retained Earnings 62,686 58,092 TOTAL S'HOLDERS' EQUITY 68,571 63,980 TOTAL LIAB. & EQUITY $745,854 $695,735 Interest Rate Spread 4.48% 4.35% Net interest Income $8,350 $7,854 Net Interest Margin 5.08% 5.05% 1) Average balances include nonaccrual loans. Interest income includes fees on loans of approximately $391,000 and $335,000, for the three months ended March 31, 1994 and 1993, respectively. (2) Interest income includes the effects of taxable equivalent adjustments using a 34% tax rate.
PART II. OTHER INFORMATION Items 1-5. Not applicable Item 6. Exhibits and Reports on Form 8-K (A) Exhibits Not applicable (B) Reports on Form 8-K The Company did not file any reports on Form 8-K during the period ended March 31, 1994. Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this Report to be signed on its behalf by the undersigned Chief Financial Officer hereunto duly authorized. CAPITAL CITY BANK GROUP, INC. (Registrant) By:___________________________ J. Kimbrough Davis Senior Vice President and Chief Financial Officer Date: May 12, 1994