Corporate
Headquarters
217
North
Monroe Street
Tallahassee,
FL 32301
News
Release
For
Immediate Release July 24, 2007
For
Information Contact:
J.
Kimbrough Davis
Executive
Vice President and Chief Financial Officer
850.671.0610
Capital
City Bank Group, Inc.
Reports
Second Quarter Earnings of $7.9 Million,
or
$0.43 per Diluted Share
TALLAHASSEE,
FL -- Capital City Bank Group, Inc. (NASDAQ: CCBG) today reported earnings
for
the second quarter of 2007 totaling $7.9 million ($0.43 per diluted share)
compared to $8.3 million ($0.44 per diluted share) for the second quarter
of
2006, down 2.3% on a per-share basis.
“The
Company’s underlying performance for the second quarter and the first half is
essentially a reflection of the current rate environment and lower loan volume
-
as economic momentum throughout our markets has tempered. The business activity
within our footprint is not driven primarily by real estate speculation,
as has
occurred in many Florida regions, but we are seeing slower general economic
growth in the northern sectors of the state,” said William G. Smith, Jr.,
Chairman, President, and CEO of Capital City Bank Group, Inc. “Our overall
credit quality remains favorable and the diversification within our loan
portfolios should mitigate undue exposure to material deterioration of any
specific asset class. As noted in this release, the quarter’s increase in our
loan loss provision from the second quarter in 2006 is primarily attributable
to
a single credit.”
“The
Company repurchased 428,442 shares of its common stock during the second
quarter
under its previously-announced buyback authorization, which is a business
decision that we believe adds significantly to shareholder value.” said Smith.
“We intend to continue to execute on this prudent initiative.”
The
decrease in earnings compared to second quarter 2006 was attributable to
a
reduction in net interest income of $1.7 million and a $1.6 million increase
in
the loan loss provision, partially offset by an increase in noninterest income
of $1.1 million, a decrease in noninterest expense of $1.2 million, and a
reduction in income taxes of $600,000.
The
5.0%
decrease in tax equivalent net interest income is reflective of higher funding
costs which increased 46 basis points from the comparable quarter in
2006.
The
higher loan loss provision reflects an increase in impaired loan reserves
primarily attributable to a $5.7 million commercial real estate project located
on Florida’s west coast, for which a reserve requirement of $927,000 is
maintained. At this time, management believes the reserve allocated to this
loan
is sufficient to absorb any anticipated loss.
The
7.7%
increase in noninterest income is due to increases in deposit fees, retail
brokerage fees, and card processing fees. The 3.8% decline in noninterest
expense reflects lower compensation, advertising, and miscellaneous
expense.
The
Return on Average Assets was 1.26% and the Return on Average Equity was 10.23%,
compared to 1.28% and 10.56%, respectively, for the comparable period in
2006.
Supplemental
Materials
Additional
financial, statistical and business related information, as well as a written
narrative addressing business financial trends relating to the second quarter,
are available in the Investor Relations section on the Company’s internet
website at www.ccbg.com.
About
Capital City Bank Group, Inc.
Capital
City Bank Group, Inc. (NASDAQ: CCBG) is one of the largest publicly traded
financial services companies headquartered in Florida and has approximately
$2.5
billion in assets. The Company’s bank subsidiary, Capital City Bank, was founded
in 1895 and now has 70 banking offices, three mortgage lending offices, and
80
ATMs in Florida, Georgia, and Alabama.
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: our ability to integrate acquisitions;
the
strength
of the U.S. economy and the local economies where we conduct operations;
harsh
weather conditions; fluctuations in inflation, interest rates, or monetary
policies; changes in the stock market and other capital and real estate markets;
legislative or regulatory changes; customer
acceptance of third-party products and services; increased
competition and its effect on pricing; technological
changes; changes
in consumer spending and savings habits;
our
growth
and profitability; 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, 2006, 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.