Capital City Bank Group, Inc.

Reports First Quarter 2013 Results

 

TALLAHASSEE, Fla. (April 22, 2013) – Capital City Bank Group, Inc. (NASDAQ: CCBG) today reported net income of $0.8 million, or $0.05 per diluted share for the first quarter of 2013 compared to net income of $1.9 million, or $0.11 per diluted share for the fourth quarter of 2012 and a net loss of $1.2 million, or $0.07 per diluted share for the first quarter of 2012.

 

Compared to the fourth quarter of 2012, performance reflects lower operating revenues of $1.1 million and a $1.7 million increase in noninterest expense, partially offset by a $1.7 million reduction in the loan loss provision.

 

Compared to the first quarter of 2012, the increase in earnings was due to a lower loan loss provision of $3.7 million and lower noninterest expense of $1.4 million, which was partially offset by lower operating revenues of $1.7 million and higher income tax expense of $1.4 million.

 

“In the first quarter of 2013 we saw more of the positive trends we experienced coming out of the latter half of 2012 with the dramatic improvement in nonperforming assets,” said William G. Smith, Jr., Chairman, President and CEO. “After declining 14.5% in 2012, nonperforming assets fell another 11.7% to $104 million in the first quarter alone. We have made clear progress in the disposition of other real estate owned and continue to believe our retail strategy – though it takes longer to execute – serves the best interests of our shareowners. While the operating environment remains choppy, economic indicators such as unemployment, population growth, housing and the overall level of real estate activity continue to improve, which we believe points toward greater stability to come. I am encouraged by the progress we’ve made despite a very challenging period and optimistic about the outlook ahead as we move forward through 2013.”

 

The Return on Average Assets was 0.13% and the Return on Average Equity was 1.36% for the first quarter of 2013, compared to 0.29% and 2.95%, respectively, for the fourth quarter of 2012, and -0.18% and -1.84%, respectively, for the comparable quarter in 2012.

 

Discussion of Financial Condition

 

Average earning assets were $2.241 billion for the first quarter of 2013, an increase of $61.9 million, or 2.8% over the fourth quarter of 2012, and a decline of $27.4 million, or 1.2%, from the first quarter of 2012.  The increase compared to the fourth quarter of 2012 primarily reflects the higher level of deposits resulting from the seasonal influx of public funds. The decrease in earning assets when compared to the same prior year period is attributable to the continued decline of the loan portfolio resulting from the resolution of problem loans.

 

We maintained an average net overnight funds (deposits with banks plus fed funds sold less fed funds purchased) sold position of $448.4 million during the first quarter of 2013 compared to an average net overnight funds sold position of $366.0 million in the fourth quarter of 2012 and an average overnight funds sold position of $373.0 million in the first quarter of 2012.  The higher balance when compared to the fourth quarter of 2012 primarily reflects the decline in the loan portfolio and higher public funds. The increase when compared to the first quarter of 2012 again reflects the declining loan portfolio, partially offset by a lower level of deposits.

 

The loan portfolio continues to decline and the deployment of the excess liquidity remains in overnight funds. Historically, we have maintained a slight overnight funds position. During the remainder of 2013, we will begin our efforts to reduce the current level of overnight funds.

 

When compared to the fourth and first quarters of 2012, average loans declined by $21.8 million and $100.0 million, respectively. Most loan categories have experienced declines with the reduction primarily in the commercial real estate and residential real estate categories. Our core loan portfolio continues to be impacted by normal amortization and a higher level of payoffs that have outpaced our new loan production. New loan production continues to be impacted by weak loan demand attributable to the trend toward consumers and businesses deleveraging, the lack of consumer confidence, and a persistently sluggish economy. Efforts to stimulate new loan growth are ongoing; during 2012 we modified lending programs in our business and commercial real estate areas to try and mitigate the significant impact that consumer and business deleveraging is having on our portfolio.

 

Nonperforming assets (nonaccrual loans and other real estate owned “OREO”) totaled $103.9 million at the end of the first quarter of 2013, a decrease of $13.8 million from the fourth quarter of 2012 and $33.0 million from the first quarter of 2012. Nonaccrual loans totaled $45.4 million at the end of the first quarter of 2013, a decrease of $18.8 million and $33.3 million, respectively, from the same prior year periods. Nonaccrual loan additions in the first quarter of 2013 totaled $7.7 million compared to $12.5 million and $19.7 million for the fourth quarter of 2012 and first quarter of 2012, respectively. The balance of OREO totaled $58.4 million at the end of the first quarter of 2013, an increase of $5.0 million over the fourth quarter of 2012 and $0.3 million over the first quarter of 2012. For the first quarter of 2013 we added properties totaling $13.0 million, sold properties totaling $6.8 million, and recorded valuation adjustments totaling $1.2 million. Nonperforming assets represented 3.99% of total assets at March 31, 2013 compared to 4.47% at December 31, 2012 and 5.14% at March 31, 2012.

 

Average total deposits were $2.103 billion for the first quarter of 2013, an increase of $51.9 million, or 2.5%, over the fourth quarter of 2012 and lower by $58.4 million, or 2.7%, from the first quarter of 2012.  The increase in deposits when compared to the fourth quarter of 2012 resulted primarily from the higher level of public funds partially offset by a reduction in certificates of deposit. When compared to the first quarter of 2012, the decline was a result of lower certificates of deposit and noninterest bearing accounts, while growth was experienced in savings and money market accounts.

 

Our mix of deposits continues to improve as higher cost certificates of deposit are replaced with lower rate non-maturity deposits and noninterest bearing demand accounts.  Prudent pricing discipline will continue to be the key to managing our mix of deposits.  Therefore, we do not attempt to compete with higher rate paying competitors for deposits.

 

Average borrowings increased by $9.6 million when compared to the fourth quarter of 2012 as a result of higher balances in repurchase agreements, and were higher by $8.2 million when compared to the first quarter of 2012, resulting from a higher level of federal home loan bank advances.

 

Discussion of Operating Results

 

Tax equivalent net interest income for the first quarter of 2013 was $20.1 million compared to $20.7 million for the fourth quarter of 2012 and $21.8 million for the first quarter of 2012.  The decrease in tax equivalent net interest income compared to the prior periods was due to a reduction in loan income primarily attributable to declining loan balances and unfavorable asset repricing, partially offset by a reduction in interest expense and a lower level of foregone interest on loans.  The lower interest expense is attributable to favorable repricing on FHLB advances and certificates of deposit which reflects both lower balances and favorable repricing.

 

The decline in the loan portfolio, coupled with the low rate environment continues to put pressure on our net interest income.  Lowering our cost of funds, to the extent we can, and continuing to shift the mix of our deposits will help to partially mitigate the unfavorable impact of weak loan demand and repricing, although the impact is expected to be minimal. 

The net interest margin for the first quarter of 2013 was 3.64%, a decrease of fourteen basis points from the fourth quarter of 2012, and a decline of 23 basis points from the first quarter of 2012.  The decrease in the margin for both comparable periods is attributable to the shift in our earning asset mix and unfavorable asset repricing, partially offset by a lower average cost of funds.

 

The provision for loan losses for the first quarter of 2013 was $1.1 million compared to $2.8 million in the fourth quarter of 2012 and $4.8 million for the first quarter of 2012. The decrease in the loan loss provision compared to both prior periods reflects a lower level of impaired loan additions and related reserves as well as improving trends in loan delinquencies, classified loans, and loan losses. Net charge-offs for the first quarter of 2013 totaled $2.4 million, or 0.66% (annualized), of average loans compared to $3.8 million, or 1.00%, for the fourth quarter of 2012 and $4.6 million, or 1.16%, in the first quarter of 2012. At quarter-end, the allowance for loan losses of $27.8 million was 1.90% of outstanding loans (net of overdrafts) and provided coverage of 61% of nonperforming loans compared to 1.93% and 45%, respectively, at December 31, 2012, and 1.98% and 40%, respectively, at March 31, 2012.

 

Noninterest income for the first quarter of 2013 totaled $13.6 million, a decrease of $0.5 million, or 3.8%, from the fourth quarter of 2012 reflective of lower deposit fees of $0.6 million, trust fees of $0.1 million, and other income of $0.2 million, partially offset by higher retail brokerage fees of $0.2 million and mortgage banking fees of $0.1 million. The decrease in deposit fees was primarily due to an expected lower utilization of our overdraft protection service during the first quarter as clients receive tax refunds and to a lesser extent two less processing days in the current quarter. The decrease in trust fees reflects a lower level of assets under management primarily due to account distributions. Other income declined due to a lower level of gains from the sale of OREO properties. The increase in retail brokerage fees reflects a higher level of client trading activity. A higher level of loans funded and a higher margin realized for sold loans drove the increase in mortgage banking fees. Compared to the first quarter of 2012, noninterest income remained flat as higher retail brokerage fees of $0.2 million and mortgage banking fees of $0.2 million were offset by lower deposit fees of $0.2 million, bank card fees of $0.1 million, and other income of $0.1 million. Increased client trading activity drove the improvement in retail brokerage fees. The increase in mortgage fees was attributable to a higher level of loans funded and a higher margin for sold loans. The reduction in deposit fees was due to a higher level of charged off checking accounts. Bank card fees decline due to a lower level of card activity and the decrease in other income was attributable to a lower level of fees for our working capital finance product.

 

Noninterest expense for the first quarter of 2013 totaled $31.2 million, an increase of $1.7 million, or 5.9%, over the fourth quarter of 2012 and a decrease of $1.4 million, or 4.3%, from the first quarter of 2012. The increase compared to the fourth quarter of 2012 was due to higher compensation expense of $1.0 million and an increase in OREO expense of $1.0 million, partially offset by lower furniture/equipment expense of $0.1 million and other expense of $0.2 million. The increase in compensation was driven by higher pension plan expense of $0.4 million, payroll taxes of $0.2 million, unemployment taxes of $0.2 million, cash incentive expense of $0.1 million, and employee insurance of $0.1 million. The increase in expense for our pension plan was primarily attributable to the utilization of a lower discount rate in 2013 due to lower long-term bond interest rates. The increase in payroll taxes reflects the reset of social security taxes and the increase in unemployment taxes is attributable to timing as a large portion of the annual premium is paid in the first quarter. Cash incentive expense increased due to the reset of these plans for 2013 performance metrics. The increase in employee insurance reflects the annual renewal of policies at a slightly higher premium rate. OREO expense increased due to a higher level of property valuation adjustments. The favorable variance in furniture/equipment expense was due to lower tangible taxes and the decrease in other expense reflects lower professional fees and advertising costs. The favorable variance in noninterest expense compared to the first quarter of 2012 was primarily attributable to a reduction in OREO expense of $0.6 million, compensation expense of $0.1 million, and other expense of $0.6 million. The reduction in OREO expense was due to a lower level of loss on sale from property dispositions. Lower employee salary expense, which is reflective of reduced headcount drove the decline in compensation. Decreases in professional fees, legal fees, and advertising costs drove the reduction in the other expense category. Expense management continues to be a key strategic focus as we evaluate opportunities to optimize our delivery channels, review our vendor relationships, and better manage our discretionary expenses.

 

About Capital City Bank Group, Inc.

 

Capital City Bank Group, Inc. (Nasdaq: CCBG) is one of the largest publicly traded bank holding companies headquartered in Florida and has approximately $2.6 billion in assets. The Company provides a full range of banking services, including traditional deposit and credit services, asset management, trust, mortgage banking, merchant services, bankcards, data processing and securities brokerage services. The Company's bank subsidiary, Capital City Bank, was founded in 1895 and now has 66 full-service offices and 71 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 the Company’s future results to differ materially. The following factors, among others, could cause the Company’s actual results to differ: the Company’s need and our ability to incur additional debt or equity financing; the accuracy of the Company’s financial statement estimates and assumptions, including the estimate used for the Company’s loan loss provision and deferred tax valuation allowance; continued depression of the market value of the Company that could result in an impairment of goodwill; legislative or regulatory changes, including the Dodd-Frank Act and Basel III; the strength of the U.S. economy and the local economies where the Company conducts operations; the frequency and magnitude of foreclosure of the Company’s loans; restrictions on our operations, including the inability to pay dividends without our regulators’ consent; the effects of the health and soundness of other financial institutions, including the FDIC’s need to increase Deposit Insurance Fund assessments; the effects of the Company’s lack of a diversified loan portfolio, including the risks of geographic and industry concentrations; harsh weather conditions and man-made disasters; fluctuations in inflation, interest rates, or monetary policies; 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 impact on our net interest margin from the repeal of Regulation Q; negative publicity and the impact on our reputation; technological changes; the effects of security breaches and computer viruses that may affect the Company’s computer systems; changes in consumer spending and savings habits; the Company’s growth and profitability; changes in accounting; and the Company’s ability to manage the risks involved in the foregoing. Additional factors can be found in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2012, and the Company’s 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 the Company assumes no obligation to update forward-looking statements or the reasons why actual results could differ.

 

 

CAPITAL CITY BANK GROUP, INC. EARNINGS HIGHLIGHTS Unaudited

 

						Three Months Ended
(Dollars in thousands, except per share data)		Mar 31, 2013				Dec 31, 2012				Mar 31, 2012
EARNINGS
Net Income (Loss)		$	839			$	1,875			$	(1,162	)
Net Income (Loss) Per Common Share		$	0.05			$	0.11			$	(0.07	)
PERFORMANCE
Return on Average Assets			0.13	%			0.29	%			-0.18	%
Return on Average Equity			1.36	%			2.95	%			-1.84	%
Net Interest Margin			3.64	%			3.78	%			3.87	%
Noninterest Income as % of Operating Revenue			40.62	%			40.81	%			38.64	%
Efficiency Ratio			92.67	%			84.68	%			92.04	%
CAPITAL ADEQUACY
Tier 1 Capital Ratio			14.95	%			14.35	%			14.17	%
Total Capital Ratio			16.32	%			15.72	%			15.54	%
Tangible Common Equity Ratio			6.49	%			6.35	%			6.42	%
Leverage Ratio			9.81	%			9.90	%			9.71	%
Equity to Assets			9.54	%			9.37	%			9.43	%
ASSET QUALITY
Allowance as % of Non-Performing Loans			61.17	%			45.42	%			39.65	%
Allowance as a % of Loans			1.90	%			1.93	%			1.98	%
Net Charge-Offs as % of Average Loans			0.66	%			1.00	%			1.16	%
Nonperforming Assets as % of Loans and ORE			6.81	%			7.47	%			8.36	%
Nonperforming Assets as % of Total Assets			3.99	%			4.47	%			5.14	%
STOCK PERFORMANCE
High		$	12.54			$	11.91			$	9.91
Low			10.95				9.04				7.32
Close			12.35				11.37				7.45
Average Daily Trading Volume		$	23,519			$	20,045			$	24,751

 

 

CAPITAL CITY BANK GROUP, INC. CONSOLIDATED STATEMENT OF FINANCIAL CONDITION Unaudited

 

		2013				2012
(Dollars in thousands)		First Quarter				Fourth Quarter				Third Quarter				Second Quarter				First Quarter
ASSETS
Cash and Due From Banks		$	52,677			$	66,238			$	53,076			$	57,477			$	50,567
Funds Sold and Interest Bearing Deposits			461,714				443,494				314,318				434,814				418,678
Total Cash and Cash Equivalents			514,391				509,732				367,394				492,291				469,245
Investment Securities, Available-for-Sale			307,502				296,985				288,166				280,753				284,490
Loans, Net of Unearned Interest
Commercial, Financial, & Agricultural			125,905				139,850				135,939				136,736				132,119
Real Estate - Construction			42,968				43,740				43,278				46,803				34,554
Real Estate - Commercial			599,517				613,625				609,671				605,819				624,528
Real Estate - Residential			311,189				318,400				341,044				353,198				364,123
Real Estate - Home Equity			233,205				236,263				239,446				242,929				240,800
Consumer			146,043				150,728				154,389				162,899				174,132
Other Loans			5,187				11,547				6,891				5,638				6,555
Overdrafts			2,307				7,149				2,637				2,214				2,073
Total Loans, Net of Unearned Interest			1,466,321				1,521,302				1,533,295				1,556,236				1,578,884
Allowance for Loan Losses			(27,803	)			(29,167	)			(30,222	)			(29,929	)			(31,217	)
Loans, Net			1,438,518				1,492,135				1,503,073				1,526,307				1,547,667
Premises and Equipment, Net			105,883				107,092				109,003				110,302				111,408
Intangible Assets			84,985				85,053				85,161				85,269				85,376
Other Real Estate Owned			58,421				53,426				53,172				58,059				58,100
Other Assets			95,613				89,561				87,815				92,869				103,992
Total Other Assets			344,902				335,132				335,151				346,499				358,876
Total Assets		$	2,605,313			$	2,633,984			$	2,493,784			$	2,645,850			$	2,660,278
LIABILITIES
Deposits:
Noninterest Bearing Deposits		$	616,017			$	609,235			$	596,660			$	623,130			$	605,774
NOW Accounts			765,030				842,435				703,327				789,103				845,149
Money Market Accounts			299,118				267,766				285,084				288,352				283,224
Regular Savings Accounts			200,492				184,541				181,523				178,388				172,262
Certificates of Deposit			233,325				241,019				254,000				271,413				279,295
Total Deposits			2,113,982				2,144,996				2,020,594				2,150,386				2,185,704
Short-Term Borrowings			50,682				47,435				42,388				69,449				42,188
Subordinated Notes Payable			62,887				62,887				62,887				62,887				62,887
Other Long-Term Borrowings			41,224				46,859				38,126				38,846				42,826
Other Liabilities			87,930				84,918				79,427				75,260				75,876
Total Liabilities			2,356,705				2,387,095				2,243,422				2,396,828				2,409,481
SHAREOWNERS’ EQUITY
Common Stock			173				172				172				172				172
Additional Paid-In Capital			39,580				38,707				38,493				38,260				38,101
Retained Earnings			238,408				237,569				235,694				234,573				236,299
Accumulated Other Comprehensive Loss, Net of Tax			(29,553	)			(29,559	)			(23,997	)			(23,983	)			(23,775	)
Total Shareowners’ Equity			248,608				246,889				250,362				249,022				250,797
Total Liabilities and Shareowners’ Equity		$	2,605,313			$	2,633,984			$	2,493,784			$	2,645,850			$	2,660,278
OTHER BALANCE SHEET DATA
Earning Assets		$	2,235,537			$	2,261,781			$	2,135,779			$	2,271,803			$	2,282,053
Intangible Assets
Goodwill			84,811				84,811				84,811				84,811				84,811
Core Deposits			0				19				79				139				198
Other			174				223				271				319				367
Interest Bearing Liabilities			1,652,758				1,692,942				1,567,335				1,698,438				1,727,831
Book Value Per Diluted Share		$	14.35			$	14.31			$	14.54			$	14.48			$	14.60
Tangible Book Value Per Diluted Share			9.44				9.38				9.59				9.52				9.63
Actual Basic Shares Outstanding			17,319				17,232				17,223				17,198				17,182
Actual Diluted Shares Outstanding			17,326				17,259				17,223				17,198				17,182

 

 

CAPITAL CITY BANK GROUP, INC. CONSOLIDATED STATEMENT OF OPERATIONS Unaudited

 

		2013				2012
(Dollars in thousands, except per share data)		First Quarter				Fourth Quarter				Third Quarter				Second Quarter				First Quarter
INTEREST INCOME
Interest and Fees on Loans		$	20,154			$	20,756			$	21,274			$	21,359			$	22,005
Investment Securities			704				808				798				834				900
Funds Sold			270				223				254				244				225
Total Interest Income			21,128				21,787				22,326				22,437				23,130
INTEREST EXPENSE
Deposits			415				429				480				556				643
Short-Term Borrowings			82				69				71				48				8
Subordinated Notes Payable			339				351				372				372				382
Other Long-Term Borrowings			347				383				372				396				436
Total Interest Expense			1,183				1,232				1,295				1,372				1,469
Net Interest Income			19,945				20,555				21,031				21,065				21,661
Provision for Loan Losses			1,070				2,766				2,864				5,743				4,793
Net Interest Income after Provision for Loan Losses			18,875				17,789				18,167				15,322				16,868
NONINTEREST INCOME
Service Charges on Deposit Accounts			6,165				6,764				6,406				6,313				6,309
Data Processing Fees			653				671				687				680				675
Asset Management Fees(1)			993				1,100				1,020				1,020				1,015
Retail Brokerage Fees(1)			922				718				666				884				758
Mortgage Banking Fees			1,043				910				978				864				848
Interchange Fees (2)			1,793				1,726				1,619				1,580				1,526
ATM/Debit Card Fees (2)			868				886				997				1,204				1,245
Other			1,151				1,343				1,202				1,361				1,210
Total Noninterest Income			13,588				14,118				13,575				13,906				13,586
NONINTEREST EXPENSE
Compensation			16,739				15,772				15,510				16,117				16,843
Occupancy, Net			2,248				2,200				2,332				2,276				2,266
Furniture and Equipment			2,153				2,212				2,245				2,245				2,201
Intangible Amortization			68				108				108				107				108
Other Real Estate			2,901				1,917				2,616				3,460				3,513
Other			7,091				7,259				7,390				8,088				7,666
Total Noninterest Expense			31,200				29,468				30,201				32,293				32,597
OPERATING PROFIT (LOSS)			1,263				2,439				1,541				(3,065	)			(2,143	)
Income Tax Expense (Benefit)			424				564				420				(1,339	)			(981	)
NET INCOME (LOSS)		$	839			$	1,875			$	1,121			$	(1,726	)		$	(1,162	)
PER SHARE DATA
Basic Income (Loss)		$	0.05			$	0.11			$	0.07			$	(0.10	)		$	(0.07	)
Diluted Income (Loss)		$	0.05			$	0.11			$	0.07			$	(0.10	)		$	(0.07	)
AVERAGE SHARES
Basic			17,302				17,229				17,215				17,192				17,181
Diluted			17,309				17,256				17,228				17,192				17,181

⁽¹⁾ Together referred to as “Wealth Management Fees”

⁽²⁾ Together referred to as “Bank Card Fees”

 

 

CAPITAL CITY BANK GROUP, INC. ALLOWANCE FOR LOAN LOSSES AND NONPERFORMING ASSETS Unaudited

 

		2013				2012				2012				2012				2012
(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		$	29,167			$	30,222			$	29,929			$	31,217			$	31,035
Provision for Loan Losses			1,070				2,766				2,864				5,743				4,793
Net Charge-Offs			2,434				3,821				2,571				7,031				4,611
Balance at End of Period		$	27,803			$	29,167			$	30,222			$	29,929			$	31,217
As a % of Loans			1.90	%			1.93	%			1.97	%			1.93	%			1.98	%
As a % of Nonperforming Loans			61.17	%			45.42	%			40.80	%			40.03	%			39.65	%
CHARGE-OFFS
Commercial, Financial and Agricultural		$	154			$	166			$	331			$	57			$	268
Real Estate - Construction			610				227				127				275				0
Real Estate - Commercial			1,043				468				512				3,519				1,532
Real Estate - Residential			683				2,877				981				3,894				1,967
Real Estate - Home Equity			113				745				834				425				892
Consumer			296				488				355				550				732
Total Charge-Offs		$	2,899			$	4,971			$	3,140			$	8,720			$	5,391
RECOVERIES
Commercial, Financial and Agricultural		$	51			$	87			$	53			$	83			$	67
Real Estate - Construction			—				7				9				27				—
Real Estate - Commercial			38				468				34				42				138
Real Estate - Residential			96				83				76				969				163
Real Estate - Home Equity			18				250				15				116				18
Consumer			262				255				382				452				394
Total Recoveries		$	465			$	1,150			$	569			$	1,689			$	780
NET CHARGE-OFFS		$	2,434			$	3,821			$	2,571			$	7,031			$	4,611
Net Charge-Offs as a % of Average Loans(1)			0.66	%			1.00	%			0.66	%			1.80	%			1.16	%
RISK ELEMENT ASSETS
Nonaccruing Loans		$	45,448			$	64,222			$	74,075			$	74,770			$	78,726
Other Real Estate Owned			58,421				53,426				53,172				58,059				58,100
Total Nonperforming Assets		$	103,869			$	117,648			$	127,247			$	132,829			$	136,826
Past Due Loans 30-89 Days		$	9,274			$	9,934			$	12,923			$	16,695			$	9,193
Past Due Loans 90 Days or More			—				—				—				—				25
Performing Troubled Debt Restructuring’s		$	53,108			$	47,474			$	45,973			$	38,734			$	37,373
Nonperforming Loans as a % of Loans			3.10	%			4.22	%			4.83	%			4.80	%			4.99	%
Nonperforming Assets as a % of
Loans and Other Real Estate			6.81	%			7.47	%			8.02	%			8.23	%			8.36	%
Nonperforming Assets as a % of Total Assets			3.99	%			4.47	%			5.10	%			5.02	%			5.14	%

⁽¹⁾ Annualized

 

 

CAPITAL CITY BANK GROUP, INC. AVERAGE BALANCE AND INTEREST RATES(1) Unaudited

 

		First Quarter 2013												Fourth Quarter 2012												Third Quarter 2012												Second Quarter 2012												First Quarter 2012
(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		$	1,496,432				20,228				5.48	%		$	1,518,280				20,837				5.46	%		$	1,541,262				21,366				5.51	%		$	1,570,827				21,456				5.49	%		$	1,596,480				22,121				5.57	%
Investment Securities
Taxable Investment Securities			215,087				590				1.10				219,985				697				1.26				214,431				691				1.28				216,952				730				1.35				242,481				794				1.31
Tax-Exempt Investment Securities			80,946				174				0.86				74,647				172				0.92				67,446				163				0.97				63,715				161				1.01				56,313				162				1.15
Total Investment Securities			296,033				764				1.04				294,632				869				1.17				281,877				854				1.21				280,667				891				1.27				298,794				956				1.28
Funds Sold			448,424				270				0.24				366,034				223				0.24				386,027				254				0.26				411,353				244				0.24				373,033				225				0.24
Total Earning Assets			2,240,889			$	21,262				3.85	%			2,178,946			$	21,929				4.00	%			2,209,166			$	22,474				4.05	%			2,262,847			$	22,591				4.01	%			2,268,307			$	23,302				4.13	%
Cash and Due From Banks			50,679												51,344												47,207												47,711												49,427
Allowance for Loan Losses			(30,467	)											(30,605	)											(30,260	)											(31,599	)											(31,382	)
Other Assets			337,579												334,326												340,126												345,458												350,555
Total Assets		$	2,598,680											$	2,534,011											$	2,566,239											$	2,624,417											$	2,636,907
LIABILITIES:
Interest Bearing Deposits
NOW Accounts		$	788,660			$	156				0.08	%		$	714,682			$	131				0.07	%		$	740,178			$	144				0.08	%		$	809,172			$	167				0.08	%		$	823,406			$	192				0.09	%
Money Market Accounts			282,847				54				0.08				275,458				57				0.08				287,250				60				0.08				280,371				63				0.09				277,558				75				0.11
Savings Accounts			193,033				23				0.05				182,760				23				0.05				179,445				23				0.05				174,923				21				0.05				165,603				20				0.05
Time Deposits			238,441				181				0.31				247,679				218				0.35				263,007				253				0.38				274,497				305				0.45				284,129				356				0.50
Total Interest Bearing Deposits			1,502,981				414				0.11	%			1,420,579				429				0.12	%			1,469,880				480				0.13	%			1,538,963				556				0.15	%			1,550,696				643				0.17	%
Short-Term Borrowings			55,255				82				0.60	%			45,893				69				0.59	%			59,184				71				0.48	%			57,983				48				0.33	%			45,645				8				0.07	%
Subordinated Notes Payable			62,887				339				2.15				62,887				351				2.19				62,887				372				2.31				62,887				372				2.34				62,887				382				2.40
Other Long-Term Borrowings			42,898				348				3.29				42,673				383				3.57				38,494				372				3.85				40,617				396				3.92				44,286				436				3.96
Total Interest Bearing Liabilities			1,664,021			$	1,183				0.29	%			1,572,032			$	1,232				0.31	%			1,630,445			$	1,295				0.32	%			1,700,450			$	1,372				0.32	%			1,703,514			$	1,469				0.35	%
Noninterest Bearing Deposits			599,986												630,520												605,602												596,690												610,692
Other Liabilities			85,116												78,442												78,446												74,633												68,254
Total Liabilities			2,349,123												2,280,994												2,314,493												2,371,773												2,382,460
SHAREOWNERS’ EQUITY:			249,557												253,017												251,746												252,644												254,447
Total Liabilities and Shareowners’ Equity		$	2,598,680											$	2,534,011											$	2,566,239											$	2,624,417											$	2,636,907
Interest Rate Spread						$	20,079				3.56	%						$	20,697				3.69	%						$	21,179				3.73	%						$	21,219				3.69	%						$	21,833				3.78	%
Interest Income and Rate Earned(1)							21,262				3.85								21,929				4.00								22,474				4.05								22,591				4.01								23,302				4.13
Interest Expense and Rate Paid(2)							1,183				0.21								1,232				0.22								1,295				0.23								1,372				0.24								1,469				0.26
Net Interest Margin						$	20,079				3.64	%						$	20,697				3.78	%						$	21,179				3.82	%						$	21,219				3.77	%						$	21,833				3.87	%

⁽¹⁾ Interest and average rates are calculated on a tax-equivalent basis using the 35% Federal tax rate.

⁽²⁾ Rate calculated based on average earning assets.