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CST: 11/11/2019 20:59:19   

Capital City Bank Group, Inc. Reports First Quarter 2019 Results

203 Days ago

TALLAHASSEE, Fla., April 22, 2019 (GLOBE NEWSWIRE) -- Capital City Bank Group, Inc. (NASDAQ: CCBG) today reported net income of $6.4 million, or $0.38 per diluted share for the first quarter of 2019 compared to net income of $8.5 million, or $0.50 per diluted share for the fourth quarter of 2018, and $5.8 million, or $0.34 per diluted share for the first quarter of 2018. 

Net income for the first quarter of 2018 included a $1.5 million, or $0.09 per diluted share tax benefit related to a 2017 plan year pension plan contribution. Net income for the fourth quarter of 2018 included a $2.0 million, or $0.09 per diluted share, gain from the sale of a banking office and a $0.3 million, or $0.02 per diluted share, tax benefit from a tax accounting method change.

HIGHLIGHTS

  • Net interest income up 2.3% sequentially and 14.5% over prior year
  • Period-end loan growth of 1.2% sequentially and 8.1% over prior year
  • 42 basis points cost of funds reflects the quality of our core deposit base (~ 38% noninterest bearing)
  • Continued efforts to restrain expense growth 
  • Nonperforming assets down 24% sequentially and 35% from prior year

“The results of the first quarter were strong and a great start to the new year,” said William G. Smith, Jr., Chairman, President and CEO. “Loan growth finished strong – up $21 million quarter over quarter. Four rate increases during 2018 and a strong core deposit base continue to positively impact our net interest income, which on a sequential basis, increased $600,000 as the higher rates roll through our earning asset portfolios. Lowering our efficiency ratio is a top priority and we have multiple strategies in place to grow revenues and reduce expenses. I am pleased to say that credit quality has returned to pre-crisis levels and our capital position is stronger today than it was then. Florida is growing and we are once again on offense following a number of years playing defense after the crisis. I am optimistic about 2019 and your management team will remain focused on implementing strategies that produce long-term value for our shareowners.”

Compared to the fourth quarter of 2018, the $2.1 million decrease in operating profit reflected a $1.7 million increase in noninterest expense, lower noninterest income of $0.7 million, and a $0.3 million increase in the loan loss provision, partially offset by higher net interest income of $0.6 million.

Compared to the first quarter of 2018, the $2.9 million increase in operating profit was attributable to higher net interest income of $3.1 million and noninterest income of $0.1 million, partially offset by higher noninterest expense of $0.3 million.

Our return on average assets (“ROA”) was 0.87% and our return on average equity (“ROE”) was 8.49% for the first quarter of 2019 compared to 0.81% and 8.14%, respectively, for the first quarter of 2018. 

Discussion of Operating Results

Tax-equivalent net interest income for the first quarter of 2019 was $25.0 million compared to $24.5 million for the fourth quarter of 2018 and $21.9 million for the first quarter of 2018. During the first quarter of 2019, overnight funds increased primarily due to seasonal growth in our public fund deposits and a higher balance of one large negotiated rate client. The increase in tax-equivalent net interest income compared to the first quarter of 2018 reflected growth in the loan portfolio and higher rates earned on overnight funds, investment securities, and variable rate loans, partially offset by a higher cost on our negotiated rate deposits.

The federal funds target rate ended the first quarter of 2019 at a range of 2.25%-2.50%, with the most recent increase to the target rate occurring in December 2018. These fed rate increases positively affected our net interest income due to favorable repricing of our variable and adjustable rate earning assets. Although these increases resulted in higher rates paid on our negotiated rate deposit products, we continue to prudently manage our deposit mix and overall cost of funds, which was 42 basis points for the first quarter of 2019 compared to 31 basis points for the prior quarter. In conjunction with our overall balance sheet management, we continue to review our deposit board rates to determine whether rate increases are appropriate. We have developed several new deposit products designed to help maintain existing relationships for clients seeking higher returns on their deposit balances.

Our net interest margin for the first quarter of 2019 was 3.75%, a decrease of six basis points compared to the fourth quarter of 2018 and an increase of 32 basis points over the first quarter of 2018. The decrease in margin compared to the fourth quarter of 2018 was attributable to a higher level and less favorable mix of earning assets and an increase in cost of funds, primarily negotiated NOW and MMAs. All three factors were driven by the seasonal inflow of public fund deposits, which is anticipated in the first quarter of each year. The increase in the margin compared to the first quarter of 2018 was primarily due to loan growth and higher yields on our variable and adjustable rate earning assets, partially offset by higher rates on our negotiated rate deposits.

The provision for loan losses for the first quarter of 2019 was $0.8 million compared to $0.5 million for the fourth quarter of 2018 and $0.7 million for the first quarter of 2018. The higher provision compared to the fourth quarter of 2018 was primarily attributable to higher net loan charge-offs. At March 31, 2019, the allowance for loan losses of $14.1 million represented 0.78% of outstanding loans (net of overdrafts) and provided coverage of 280% of nonperforming loans compared to 0.80% and 207%, respectively, at December 31, 2018 and 0.80% and 181%, respectively, at March 31, 2018.

Noninterest income for the first quarter of 2019 totaled $12.6 million, a decrease of $0.7 million, or 5.2%, from the fourth quarter of 2018 and a $0.1 million, or 0.6%, increase over the first quarter of 2018. The decrease from the fourth quarter of 2018 was primarily attributable to lower deposit fees and mortgage banking fees.

Noninterest expense for the first quarter of 2019 totaled $28.2 million, an increase of $1.7 million, or 6.4%, over the fourth quarter of 2018 and $0.3 million, or 1.0%, over the first quarter of 2018. The increase over the fourth quarter was primarily attributable to higher other real estate expense of $2.0 million, partially offset by lower occupancy expense of $0.3 million. The increase in other real estate expense reflected a $2.0 million gain on the sale of a banking office in the fourth quarter of 2018. The decrease in occupancy expense was primarily attributable to lower maintenance expense for premises.

We realized income tax expense of $2.1 million for the first quarter of 2019 compared to $2.2 million for the fourth quarter of 2018 and an income tax benefit of $0.2 million for the first quarter of 2018. Fourth quarter of 2018 income tax expense reflected a discrete tax benefit of $0.3 million related to a tax accounting method change for a cost segregation and depreciation analysis for various properties we own. Income tax for the first quarter of 2018 included a discrete tax benefit of $1.5 million resulting from the effect of federal tax reform, on a pension plan contribution made in the first quarter of 2018 for the plan year 2017. Absent discrete items, we expect our effective tax rate to approximate 24%. 

Discussion of Financial Condition

Average earning assets were $2.705 billion for the first quarter of 2019, an increase of $150.3 million, or 5.9%, over the fourth quarter of 2018, and an increase of $112.3 million, or 4.3%, over the first quarter of 2018. The change in average earning assets over both periods reflected a higher level of total deposits, resulting in a higher balance of overnight funds sold.

We maintained an average net overnight funds (deposits with banks plus fed funds sold less fed funds purchased) sold position of $265.7 million during the first quarter of 2019 compared to $80.8 million in the fourth quarter of 2018 and $240.9 million in the first quarter of 2018. The increase in the average net overnight funds compared to both prior periods resulted from increases in all deposit types except money market accounts and certificates of deposit.

While average loans decreased slightly ($5.2 million, or 0.3%) when compared to the fourth quarter of 2018, they grew $132.8 million, or 8.1% when compared to the first quarter of 2018. On an “as of” basis, loans grew $20.6 million and $134.9 million, respectively. The average decrease compared to the fourth quarter of 2018 primarily reflected declines in all loan types except commercial real estate and consumer loans. During the first quarter 2019, we purchased principal balances of $10.3 million in commercial real estate loans and $4.4 million in residential real estate loan pools, which partially offset the decline in quarterly loan production. Average growth over the first quarter of 2018 was experienced in all loan categories, with the exception of home equity loans. A portion of this growth compared to the first quarter 2018 was attributable to $36.8 million in principal balances of several loan pool purchases ($22.1 million in 2018 and $14.7 million in the first quarter of 2019). All loan purchases are individually reviewed and evaluated in accordance with our credit underwriting standards.

Nonperforming assets (nonaccrual loans and OREO) totaled $6.9 million at March 31, 2019, a decrease of $2.2 million, or 23.6%, from December 31, 2018 and $3.7 million, or 34.7%, from March 31, 2018. Nonaccrual loans totaled $5.0 million at March 31, 2019, a $1.8 million decrease from December 31, 2018 and a $2.3 million decrease from March 31, 2018. Nonaccrual loan additions totaled $2.5 million for the first quarter of 2019 compared to $3.1 million for the fourth quarter of 2018 and $1.8 million for the first quarter of 2018. The balance of OREO totaled $1.9 million at March 31, 2019, a decrease of $0.4 million and $1.4 million, respectively, from December 31, 2018 and March 31, 2018. For the first quarter of 2019, we added properties totaling $0.5 million, sold properties totaling $0.7 million, and recorded valuation adjustments totaling $0.2 million. 

Average total deposits were $2.565 billion for the first quarter of 2019, an increase of $152.3 million, or 6.3% over the fourth quarter of 2018, and an increase of $108.6 million, or 4.4% over the first quarter of 2018. The increase in average deposits compared to both prior periods reflected increases in all deposit types except money market accounts and certificates of deposit. The seasonal influx of negotiated public NOW accounts has most likely peaked for this cycle, and is expected to gradually decline through the fourth quarter of 2019. 

Deposit levels remain strong, and average core deposits continue to experience growth. We monitor deposit rates on an ongoing basis and adjust if necessary, as a prudent pricing discipline remains the key to managing our mix of deposits.

Average borrowings decreased $5.8 million compared to the fourth quarter of 2018 and decreased $3.1 million compared to the first quarter of 2018. Declines from both prior periods were primarily due to payoffs of FHLB advances.

Shareowners’ equity was $309.0 million at March 31, 2019, compared to $302.6 million at December 31, 2018 and $288.4 million at March 31, 2018. Our leverage ratio was 10.53%, 10.89%, and 10.36%, respectively, on these dates. Further, at March 31, 2019, our risk-adjusted capital ratio was 17.09% compared to 17.13% and 17.05% at December 31, 2018 and March 31, 2018, respectively. Our common equity tier 1 ratio was 13.62% at March 31, 2019, compared to 13.58% at December 31, 2018 and 13.44% at March 31, 2018. At March 31, 2019, each of our regulatory capital ratios exceeded the threshold to be designated as “well-capitalized” under the Basel III capital standards. 

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 $3.0 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 and securities brokerage services. Our bank subsidiary, Capital City Bank, was founded in 1895 and now has 59 banking offices and 73 ATMs 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: the accuracy of the our financial statement estimates and assumptions; legislative or regulatory changes, including the Dodd-Frank Act, Basel III, and the ability to repay and qualified mortgage standards; fluctuations in inflation, interest rates, or monetary policies; the effects 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; harsh weather conditions and man-made disasters; changes in the stock market and other capital and real estate markets; customer acceptance of third-party products and services; increased competition and its effect on pricing, including the long-term impact on our net interest margin from the repeal of Regulation Q; 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, 2018, 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.

USE OF NON-GAAP FINANCIAL MEASURES

We present a tangible common equity ratio and a tangible book value per diluted share that removes the effect of goodwill 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) Mar 31, 2019 Dec 31, 2018 Sep 30, 2018 Jun 30, 2018 Mar 31, 2018
Shareowners' Equity (GAAP)   $ 308,986   $ 302,587   $ 298,016   $ 293,571   $ 288,360  
Less: Goodwill (GAAP)     84,811     84,811     84,811     84,811     84,811  
Tangible Shareowners' Equity (non-GAAP) A   224,175     217,776     213,205     208,760     203,549  
Total Assets (GAAP)     3,052,051     2,959,183     2,819,190     2,880,278     2,924,832  
Less: Goodwill (GAAP)     84,811     84,811     84,811     84,811     84,811  
Tangible Assets (non-GAAP) B $ 2,967,240   $ 2,874,372   $ 2,734,379   $ 2,795,467   $ 2,840,021  
Tangible Common Equity Ratio (non-GAAP) A/B   7.56 %   7.58 %   7.80 %   7.47 %   7.17 %
Actual Diluted Shares Outstanding (GAAP) C   16,840,496     16,808,542     17,127,846     17,114,380     17,088,419  
Tangible Book Value per Diluted Share (non-GAAP) A/C $ 13.31   $ 12.96   $ 12.45   $ 12.20   $ 11.91  



CAPITAL CITY BANK GROUP, INC.            
EARNINGS HIGHLIGHTS            
Unaudited            
             
    Three Months Ended
(Dollars in thousands, except per share data)   Mar 31, 2019   Dec 31, 2018   Mar 31, 2018
EARNINGS            
Net Income $ 6,436   $ 8,458   $ 5,773  
Diluted Net Income Per Share $ 0.38   $ 0.50   $ 0.34  
PERFORMANCE            
Return on Average Assets   0.87 %   1.18 %   0.81 %
Return on Average Equity   8.49 %   11.10 %   8.14 %
Net Interest Margin   3.75 %   3.81 %   3.43 %
Noninterest Income as % of Operating Revenue   33.51 %   35.22 %   36.44 %
Efficiency Ratio   75.01 %   70.21 %   81.07 %
CAPITAL ADEQUACY            
Tier 1 Capital   16.34 %   16.36 %   16.31 %
Total Capital   17.09 %   17.13 %   17.05 %
Tangible Common Equity (1)   7.56 %   7.58 %   7.17 %
Leverage   10.53 %   10.89 %   10.36 %
Common Equity Tier 1   13.62 %   13.58 %   13.44 %
Equity to Assets   10.12 %   10.23 %   9.86 %
ASSET QUALITY            
Allowance as % of Non-Performing Loans   279.77 %   206.79 %   181.26 %
Allowance as a % of Loans   0.78 %   0.80 %   0.80 %
Net Charge-Offs as % of Average Loans   0.20 %   0.10 %   0.20 %
Nonperforming Assets as % of Loans and OREO   0.39 %   0.51 %   0.64 %
Nonperforming Assets as % of Total Assets   0.23 %   0.31 %   0.36 %
STOCK PERFORMANCE            
High $ 25.87   $ 26.95   $ 26.50  
Low   21.04     19.92     22.80  
Close $ 21.78   $ 23.21   $ 24.75  
Average Daily Trading Volume   18,407     21,455     21,061  
             
(1)  Tangible common equity ratio is a non-GAAP financial measure.  For additional information, including a reconciliation to GAAP, refer to page 3.



CAPITAL CITY BANK GROUP, INC.                    
CONSOLIDATED STATEMENT OF FINANCIAL CONDITION            
Unaudited                    
                     
  2019   2018  
(Dollars in thousands)   First Quarter   Fourth Quarter   Third Quarter   Second Quarter   First Quarter
ASSETS                    
Cash and Due From Banks $ 49,501   $ 62,032   $ 48,423   $ 56,573   $ 47,804  
Funds Sold and Interest Bearing Deposits   304,213     213,968     26,839     107,066     250,821  
Total Cash and Cash Equivalents   353,714     276,000     75,262     163,639     298,625  
                     
Investment Securities Available for Sale   429,016     446,157     484,243     493,662     471,836  
Investment Securities Held to Maturity   226,179     217,320     227,923     236,764     225,552  
  Total Investment Securities   655,195     663,477     712,166     730,426     697,388  
                     
Loans Held for Sale   4,557     6,869     8,297     8,246     4,845  
                     
Loans, Net of Unearned Interest                    
Commercial, Financial, & Agricultural   238,942     233,689     239,044     222,406     198,775  
Real Estate - Construction   87,123     89,527     87,672     88,169     80,236  
Real Estate - Commercial   615,129     602,061     596,391     575,993     551,309  
Real Estate - Residential   338,574     334,197     333,896     320,296     307,050  
Real Estate - Home Equity   209,194     210,111     212,942     218,851     223,994  
Consumer   296,351     295,040     294,040     285,599     284,356  
Other Loans   10,430     8,018     8,167     11,648     14,988  
Overdrafts   1,362     1,582     1,602     1,513     1,187  
Total Loans, Net of Unearned Interest   1,797,105     1,774,225     1,773,754     1,724,475     1,661,895  
Allowance for Loan Losses   (14,120 )   (14,210 )   (14,219 )   (13,563 )   (13,258 )
Loans, Net   1,782,985     1,760,015     1,759,535     1,710,912     1,648,637  
                     
Premises and Equipment, Net   86,846     87,190     89,567     90,000     90,939  
Goodwill   84,811     84,811     84,811     84,811     84,811  
Other Real Estate Owned   1,902     2,229     2,720     3,373     3,330  
Other Assets   82,041     78,592     86,832     88,871     96,257  
Total Other Assets   255,600     252,822     263,930     267,055     275,337  
                     
Total Assets $ 3,052,051   $ 2,959,183   $ 2,819,190   $ 2,880,278   $ 2,924,832  
                     
LIABILITIES                    
Deposits:                    
Noninterest Bearing Deposits $ 995,853   $ 947,858   $ 934,146   $ 937,241   $ 890,482  
NOW Accounts   887,453     867,209     713,967     778,131     859,704  
Money Market Accounts   244,628     237,739     254,099     257,965     257,422  
Regular Savings Accounts   372,414     358,306     352,508     354,156     353,996  
Certificates of Deposit   116,946     120,744     126,496     131,697     137,280  
Total Deposits   2,617,294     2,531,856     2,381,216     2,459,190     2,498,884  
                     
Short-Term Borrowings   8,983     13,541     16,644     7,021     4,893  
Subordinated Notes Payable   52,887     52,887     52,887     52,887     52,887  
Other Long-Term Borrowings   7,661     8,568     12,456     12,897     13,333  
Other Liabilities   56,240     49,744     57,971     54,712     66,475  
                     
Total Liabilities   2,743,065     2,656,596     2,521,174     2,586,707     2,636,472  
                     
SHAREOWNERS' EQUITY                    
Common Stock   168     167     171     171     171  
Additional Paid-In Capital   31,929     31,058     38,325     37,932     37,343  
Retained Earnings   304,763     300,177     293,254     288,800     283,990  
Accumulated Other Comprehensive Loss, Net of Tax   (27,874 )   (28,815 )   (33,734 )   (33,332 )   (33,144 )
                     
Total Shareowners' Equity   308,986     302,587     298,016     293,571     288,360  
                     
Total Liabilities and Shareowners' Equity $ 3,052,051   $ 2,959,183   $ 2,819,190   $ 2,880,278   $ 2,924,832  
                     
OTHER BALANCE SHEET DATA                    
Earning Assets $ 2,761,070   $ 2,658,539   $ 2,521,056   $ 2,570,213   $ 2,614,949  
Interest Bearing Liabilities   1,690,972     1,658,994     1,529,057     1,594,754     1,679,515  
                     
Book Value Per Diluted Share $ 18.35   $ 18.00   $ 17.40   $ 17.15   $ 16.87  
Tangible Book Value Per Diluted Share(1)   13.31     12.96     12.45     12.20     11.91  
                     
Actual Basic Shares Outstanding   16,812     16,748     17,059     17,056     17,044  
Actual Diluted Shares Outstanding   16,840     16,809     17,128     17,114     17,088  
                     
(1)  Tangible book value per diluted share is a non-GAAP financial measure. For additional information, including a reconciliation to GAAP, refer to page 3.



CAPITAL CITY BANK GROUP, INC.                    
CONSOLIDATED STATEMENT OF OPERATIONS              
Unaudited                    
                     
    2019   2018
(Dollars in thousands, except per share data)   First Quarter   Fourth Quarter   Third Quarter   Second Quarter   First Quarter
                     
INTEREST INCOME                    
Interest and Fees on Loans $ 22,616 $ 22,431   $ 21,618 $ 20,533 $ 19,535  
Investment Securities   3,513   3,478     3,472   3,156   2,762  
Funds Sold   1,593   461     302   730   917  
Total Interest Income   27,722   26,370     25,392   24,419   23,214  
                     
INTEREST EXPENSE                    
Deposits   2,099   1,312     1,068   995   868  
Short-Term Borrowings   35   53     41   8   8  
Subordinated Notes Payable   608   572     568   552   475  
Other Long-Term Borrowings   72   85     92   94   100  
Total Interest Expense   2,814   2,022     1,769   1,649   1,451  
Net Interest Income   24,908   24,348     23,623   22,770   21,763  
Provision for Loan Losses   767   457     904   815   745  
Net Interest Income after Provision for Loan Losses   24,141   23,891     22,719   21,955   21,018  
                     
NONINTEREST INCOME                    
Deposit Fees   4,775   5,172     5,207   4,842   4,872  
Bank Card Fees   2,855   2,830     2,828   2,909   2,811  
Wealth Management Fees   2,323   2,320     2,181   2,037   2,173  
Mortgage Banking Fees   993   1,129     1,343   1,206   1,057  
Other   1,606   1,787     1,749   1,548   1,564  
Total Noninterest Income   12,552   13,238     13,308   12,542   12,477  
                     
NONINTEREST EXPENSE                    
Compensation   16,349   16,322     15,891   15,797   15,911  
Occupancy, Net   4,509   4,804     4,645   4,503   4,551  
Other Real Estate, Net   363   (1,663 )   347   248   626  
Other   6,977   7,042     7,816   7,845   6,818  
Total Noninterest Expense   28,198   26,505     28,699   28,393   27,906  
                     
OPERATING PROFIT   8,495   10,624     7,328   6,104   5,589  
Income Tax (Benefit) Expense   2,059   2,166     1,338   101   (184 )
NET INCOME $ 6,436 $ 8,458   $ 5,990 $ 6,003 $ 5,773  
                     
PER SHARE DATA                    
Basic Net Income $ 0.38 $ 0.50   $ 0.35 $ 0.35 $ 0.34  
Diluted Net Income   0.38   0.50     0.35   0.35   0.34  
Cash Dividend $ 0.11 $ 0.09   $ 0.09 $ 0.07 $ 0.07  
AVERAGE SHARES                    
Basic    16,791   16,989     17,056   17,045   17,028  
Diluted    16,819   17,050     17,125   17,104   17,073  



CAPITAL CITY BANK GROUP, INC.                    
ALLOWANCE FOR LOAN LOSSES                    
AND RISK ELEMENT ASSETS                    
Unaudited                    
                     
    2019   2018
(Dollars in thousands, except per share data)   First Quarter   Fourth Quarter   Third Quarter   Second Quarter   First Quarter
                     
ALLOWANCE FOR LOAN LOSSES                    
Balance at Beginning of Period $ 14,210   $ 14,219   $ 13,563   $ 13,258   $ 13,307  
Provision for Loan Losses   767     457     904     815     745  
Net Charge-Offs   857     466     248     510     794  
Balance at End of Period $ 14,120   $ 14,210   $ 14,219   $ 13,563   $ 13,258  
As a % of Loans   0.78 %   0.80 %   0.80 %   0.78 %   0.80 %
As a % of Nonperforming Loans   279.77 %   206.79 %   207.06 %   236.25 %   181.26 %
                     
CHARGE-OFFS                    
Commercial, Financial and Agricultural $ 95   $ 53   $ 268   $ 141   $ 182  
Real Estate - Construction   -     -     -     -     7  
Real Estate - Commercial   155     -     25     -     290  
Real Estate - Residential   264     111     106     456     107  
Real Estate - Home Equity   52     106     112     157.00     158  
Consumer   795     728     463     509     695  
Total Charge-Offs $ 1,361   $ 998   $ 974   $ 1,263   $ 1,439  
                     
RECOVERIES                    
Commercial, Financial and Agricultural $ 74   $ 128   $ 78   $ 87   $ 166  
Real Estate - Construction   -     25     -     -     1.00  
Real Estate - Commercial   70     13     222     15     123  
Real Estate - Residential   44     106     107     346     84  
Real Estate - Home Equity   32     61     47     22     61  
Consumer   284     199     272     283     210  
Total Recoveries $ 504   $ 532   $ 726   $ 753   $ 645  
                     
NET CHARGE-OFFS $ 857   $ 466   $ 248   $ 510   $ 794  
                     
Net Charge-Offs as a % of Average Loans (1)   0.20 %   0.10 %   0.06 %   0.12 %   0.20 %
                     
RISK ELEMENT ASSETS                    
Nonaccruing Loans $ 5,047   $ 6,872   $ 6,867   $ 5,741   $ 7,314  
Other Real Estate Owned   1,902     2,229     2,720     3,373     3,330  
Total Nonperforming Assets $ 6,949   $ 9,101   $ 9,587   $ 9,114   $ 10,644  
                     
Past Due Loans 30-89 Days $ 4,682   $ 4,757   $ 3,684   $ 3,472   $ 4,268  
Past Due Loans 90 Days or More   -     -     126     -     -  
Classified Loans   22,219     22,888     27,039     29,583     31,709  
Performing Troubled Debt Restructuring's $ 20,791   $ 22,084   $ 28,661   $ 29,981   $ 31,472  
                     
Nonperforming Loans as a % of Loans   0.28 %   0.39 %   0.39 %   0.33 %   0.44 %
Nonperforming Assets as a % of Loans and Other Real Estate   0.39 %   0.51 %   0.54 %   0.52 %   0.64 %
Nonperforming Assets as a % of Total Assets   0.23 %   0.31 %   0.34 %   0.32 %   0.36 %
                     
(1) Annualized                    



CAPITAL CITY BANK GROUP, INC. 
AVERAGE BALANCE AND INTEREST RATES (1)       
Unaudited                                                                      
                                                                       
    First Quarter 2019     Fourth Quarter 2018     Third Quarter 2018     Second Quarter 2018     First Quarter 2018  
(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
 
ASSETS:                                                                      
Loans, Net of Unearned Interest $ 1,780,406   $ 22,718   5.18 % $ 1,785,570   $ 22,556   5.01 % $ 1,747,093   $ 21,733   4.94 % $ 1,691,287     20,625   4.89 % $ 1,647,612   $ 19,636   4.83 %
                                                                       
Investment Securities                                                                      
Taxable Investment Securities   618,127     3,387   2.20     637,735     3,325   2.08     663,639     3,290   1.98     643,516     2,945   1.83     619,137     2,523   1.64  
Tax-Exempt Investment Securities   40,575     158   1.56     50,362     193   1.54     60,952     229   1.50     72,478     266   1.47     84,800     318   1.50  
                                                                       
Total Investment Securities   658,702     3,545   2.16     688,097     3,518   2.04     724,591     3,519   1.94     715,994     3,211   1.79     703,937     2,841   1.62  
                                                                       
Funds Sold   265,694     1,593   2.43     80,815     461   2.26     63,608     302   1.88     158,725     730   1.84     240,916     917   1.54  
                                                                       
Total Earning Assets   2,704,802   $ 27,856   4.17 %   2,554,482   $ 26,535   4.12 %   2,535,292   $ 25,554   4.00 %   2,566,006   $ 24,566   3.84 %   2,592,465   $ 23,394   3.66 %
                                                                       
Cash and Due From Banks   53,848               52,344               49,493               50,364               52,711            
Allowance for Loan Losses   (14,347 )             (14,642 )             (14,146 )             (13,521 )             (13,651 )          
Other Assets   252,208               257,061               256,285               258,255               260,595            
                                                                       
Total Assets $ 2,996,511             $ 2,849,245             $ 2,826,924             $ 2,861,104             $ 2,892,120            
                                                                       
LIABILITIES:                                                                      
Interest Bearing Deposits                                                                      
NOW Accounts $ 884,277   $ 1,755   0.80 % $ 739,225   $ 995   0.53 % $ 733,255   $ 773   0.42 % $ 790,335   $ 725   0.37 % $ 863,175   $ 659   0.31 %
Money Market Accounts   239,516     247   0.42     248,486     216   0.34     254,440     190   0.30     255,143     166   0.26     246,576     103   0.17  
Savings Accounts   364,783     44   0.05     356,723     44   0.05     352,833     43   0.05     351,664     43   0.05     343,987     42   0.05  
Time Deposits   118,839     53   0.18     123,193     57   0.18     129,927     62   0.19     134,171     61   0.18     140,359     64   0.18  
Total Interest Bearing Deposits   1,607,415     2,099   0.53 %   1,467,627     1,312   0.37 %   1,470,455     1,068   0.30 %   1,531,313     995   0.27 %   1,594,097     868   0.23 %
                                                                       
Short-Term Borrowings   11,378     35   1.26 %   15,424     53   1.36 %   12,949     41   1.24 %   6,633     8   0.49 %   8,869     8   0.37 %
Subordinated Notes Payable   52,887     608   4.60     52,887     572   4.23     52,887     568   4.20     52,887     552   4.13     52,887     475   3.60  
Other Long-Term Borrowings   8,199     72   3.55     9,918     85   3.40     12,729     92   2.87     13,151     94   2.88     13,787     100   2.93  
                                                                       
Total Interest Bearing Liabilities   1,679,879   $ 2,814   0.68 %   1,545,856   $ 2,022   0.54 %   1,549,020   $ 1,769   0.47 %   1,603,984   $ 1,649   0.43 %   1,669,640   $ 1,451   0.37 %
                                                                       
Noninterest Bearing Deposits   957,300               944,748               921,817               900,643               862,009            
Other Liabilities   52,070               56,445               58,330               64,671               72,969            
                                                                       
Total Liabilities   2,689,249               2,547,049               2,529,167               2,569,298               2,604,618            
                                                                       
SHAREOWNERS' EQUITY:   307,262               302,196               297,757               291,806               287,502            
                                                                       
Total Liabilities and Shareowners' Equity $ 2,996,511             $ 2,849,245             $ 2,826,924             $ 2,861,104             $ 2,892,120            
                                                                       
Interest Rate Spread     $ 25,042   3.49 %     $ 24,513   3.58 %     $ 23,785   3.53 %     $ 22,917   3.41 %     $ 21,943   3.29 %
                                                                       
Interest Income and Rate Earned(1)       27,856   4.17         26,535   4.12         25,554   4.00         24,566   3.84         23,394   3.66  
Interest Expense and Rate Paid(2)       2,814   0.42         2,022   0.31         1,769   0.28         1,649   0.26         1,451   0.23  
                                                                       
Net Interest Margin     $ 25,042   3.75 %     $ 24,513   3.81 %     $ 23,785   3.72 %     $ 22,917   3.58 %     $ 21,943   3.43 %
                                                                       
(1)   Interest and average rates are calculated on a tax-equivalent basis using a 25% Federal tax rate.
(2)   Rate calculated based on average earning assets. 


For Information Contact:
J. Kimbrough Davis
Executive Vice President and Chief Financial Officer
850.402.7820

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