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Section 1: 8-K (FORM 8K)

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, DC 20549

 

 

 

FORM 8-K

 

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the

Securities Exchange Act of 1934

 

Date of Report (Date of earliest event reported):  April 23, 2018

 

 

image_001 

 

 

CAPITAL CITY BANK GROUP, INC.

(Exact name of registrant as specified in its charter)

 

Florida

 

0-13358

 

59-2273542

(State of Incorporation)

 

(Commission File Number)

 

(IRS Employer Identification No.)

217 North Monroe Street, Tallahassee, Florida

 

32301

(Address of principal executive offices

 

(Zip Code)

 

Registrant's telephone number, including area code: (850) 671-0300

 

                                                                                                                   

(Former Name or Former Address, if Changed Since Last Report)

 

 

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

 

 Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

 

 Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

 

 Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

 

 Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).      

           Emerging growth company     [  ]

 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards pursuant to Section 13(a) of The Exchange Act.   [  ]

 

 


 

CAPITAL CITY BANK GROUP, INC.

 

FORM 8-K

CURRENT REPORT

 

Item 2.02.                  Results of Operations and Financial Condition.

 

On April 23, 2018, Capital City Bank Group, Inc. (“CCBG”) issued an earnings press release reporting CCBG’s financial results for the three month period ended March 31, 2018.  A copy of the press release is attached as Exhibit 99.1 hereto and incorporated herein by reference.

 

The information furnished under Item 2.02 of this Current Report, including the Exhibit attached hereto, shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, except as shall be expressly set forth by specific reference in such filing.

 

Item 9.01.                    Financial Statements and Exhibits.

 

(d)                Exhibits

 

Item No.      Description of Exhibit

 

99.1                     Press release, dated April 23, 2018.

  

 


 

SIGNATURES

 

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 hereunto duly authorized.

 

CAPITAL CITY BANK GROUP, INC.

 

Date:   April 23, 2018

By:  

/s/ J.Kimbrough Davis

 

 

 

J. Kimbrough Davis,

 

 

 

Executive Vice President and Chief Financial Officer

 

 

 

 

 


 

EXHIBIT INDEX

 

Exhibit

Number      Description

 

99.1             Press release, dated April 23, 2018

 

 

 


(Back To Top)

Section 2: EX-99.1 (EXHIBIT 99.1 PRESS RELEASE)

 

 

Capital City Bank Group, Inc.

Reports First Quarter 2018 Results

 

TALLAHASSEE, Fla. (April 23, 2018) – Capital City Bank Group, Inc. (NASDAQ: CCBG) today reported net income of $5.8 million, or $0.34 per diluted share for the first quarter of 2018 compared to net income of $3,000, or $0.00 per diluted share for the fourth quarter of 2017, and $2.7 million, or $0.16 per diluted share for the first quarter of 2017. 

 

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 2017 included a $4.1 million, or $0.24 per diluted share, income tax expense related to the re-measurement of our net deferred tax asset due to tax reform.

 

HIGHLIGHTS

·      Net interest income up 1.3% sequentially and 10.3% over prior year

·      23 basis points cost of funds reflects the quality of our core deposit base (~ 35% noninterest bearing)

·      Period-end loan growth 4.7% over prior year

·      Continued efforts to restrain expense growth 

·      Net charge-offs of 20 basis points continues to reflect the quality of our loan portfolio

·      Well capitalized with common equity tier 1 ratio of 13.4% and total risk based capital ratio of 17.0%

 

“I am very encouraged by first quarter results”, said William G. Smith, Jr., Chairman, President and CEO.  “Florida is strong and the demographics of our markets are improving.  We are once again on the offense following a number of years playing defense after the crisis.  Loan growth, rising rates and a phenomenal core deposit base are all contributing to higher net interest income.  While we may be nearing the point of inflection, credit quality continues to improve.  Lowering our efficiency ratio is a top priority and we have multiple strategies in place to grow our revenues and manage expenses.  There is always more to be done, but I am pleased with our progress as we continue to focus on strategies that will produce long term value for our shareowners”.

 

Compared to the fourth quarter of 2017, the $1.1 million decrease in operating profit reflected a $1.0 million increase in noninterest expense and lower noninterest income of $0.5 million, partially offset by higher net interest income of $0.3 million and a $0.1 million reduction in the loan loss provision.

 

Compared to the first quarter of 2017, the $1.4 million increase in operating profit was attributable to higher net interest income of $2.0 million, partially offset by lower noninterest income of $0.2 million and a $0.4 million increase in the loan loss provision.

 

Our return on average assets (“ROA”) was 0.81% and our return on average equity (“ROE”) was 8.14% for the first quarter of 2018 compared to 0.39% and 4.00%, respectively, for the first quarter of 2017. 

 

Discussion of Operating Results

 

Tax-equivalent net interest income for the first quarter of 2018 was $21.9 million compared to $21.8 million for the fourth quarter of 2017 and $20.0 million for the first quarter of 2017.  During the first quarter of 2018, overnight funds increased as a result of seasonal growth in our public fund deposits, and to a lesser degree, savings accounts.  A portion of these overnight funds were used to fund growth in the loan and investment portfolios.  The increase in tax-equivalent net interest income compared to the first quarter of 2017 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 increased six times since December 2015 to 1.75% at the end of the first quarter of 2018, which positively affected our net interest income due to favorable repricing of our variable and adjustable rate earning assets. Although these increases have also resulted in higher rates paid on our negotiated rate deposits, we continue to prudently manage our overall cost of funds, which was 23 basis points for the first quarter of 2018, compared to 18 basis points for fourth quarter of 2017 and 13 basis points for the first quarter 2017.  Despite highly competitive fixed-rate loan pricing across most markets, we continue to review our loan pricing and make adjustments where appropriate.    

 

Our net interest margin for the first quarter of 2018 was 3.43%, a decrease of two basis points compared to the fourth quarter of 2017 and an increase of 22 basis points over the first quarter of 2017.  Relative to both comparative periods, the average yield for each earning asset category improved. The decrease in the margin compared to the fourth quarter of 2017 was due to seasonal growth in our overnight funds, resulting in a slightly less favorable asset mix.  The increase in the margin compared to the first quarter of 2017 was primarily attributable to loan growth and higher yields on overnight funds and investment securities, partially offset by higher rates on our negotiated rate deposits.

 

 


 

The provision for loan losses for the first quarter of 2018 was $0.7 million compared to $0.8 million for the fourth quarter of 2017 and $0.3 million for the first quarter of 2017.  The higher provision compared to the first quarter of 2017 reflected higher loan charge-offs and growth in the loan portfolio.  Net loan charge-offs for the first quarter of 2018 totaled $0.8 million compared to net loan charge-offs of $0.9 million for the fourth quarter of 2017 and $0.4 million for the first quarter of 2017.  At March 31, 2018, the allowance for loan losses of $13.3 million represented 0.80% of outstanding loans (net of overdrafts) and provided coverage of 181% of nonperforming loans compared to 0.80% and 186%, respectively, at December 31, 2017 and 0.84% and 161%, respectively, at March 31, 2017.

 

Noninterest income for the first quarter of 2018 totaled $12.5 million and reflected decreases of $0.5 million, or 3.3%, from the fourth quarter of 2017 and $0.2 million, or 1.9%, from the first quarter of 2017.  The decrease from both prior periods was primarily attributable to lower mortgage banking fees and generally reflected a seasonal slowdown in loan funding, and to a lesser extent, a lower margin on sold loans.       

 

Noninterest expense for the first quarter of 2018 totaled $27.9 million, an increase of $1.0 million, or 3.8%, over the fourth quarter of 2017 attributable to higher compensation expense of $0.6 million, occupancy expense of $0.1 million, and other real estate owned expense of $0.3 million.  The higher level of compensation expense was seasonal and reflected the reset of payroll taxes and incentives.  The increase in occupancy expense was attributable to higher maintenance costs.  Other real estate owned expense increased due to a valuation adjustment for one parcel of property. 

 

We realized an income tax benefit of $0.2 million for the first quarter of 2018 which included a discrete tax benefit of $1.5 million resulting from the effect of federal tax reform, enacted in December 2017, on a pension plan contribution made in the first quarter of 2018 for the 2017 pension plan year.  Absent this discrete item, our effective tax rate was approximately 24%.  Income tax expense for the fourth quarter of 2017 was $6.7 million and included a $4.1 million discrete tax expense related to the re-measurement of our net deferred tax asset, also due to the federal tax reform enacted in December.

 

Discussion of Financial Condition

 

Average earning assets were $2.592 billion for the first quarter of 2018, an increase of $80.5 million, or 3.2%, over the fourth quarter of 2017, and an increase of $63.3 million, or 2.5%, over the first quarter of 2017.  The change in earning assets over both periods reflected a higher level of total deposits.    

 

We maintained an average net overnight funds (deposits with banks plus fed funds sold less fed funds purchased) sold position of $240.9 million during the first quarter of 2018 compared to $174.6 million in the fourth quarter of 2017 and $245.2 million in the first quarter of 2017. The change in the average net overnight funds compared to both prior periods is related to variances in deposit balances which are discussed in further detail below.

 

Average loans increased $6.9 million, or 0.4% when compared to the fourth quarter of 2017, and have grown $62.1 million, or 3.9% when compared to the first quarter of 2017. The average increase compared to the fourth quarter of 2017 primarily reflected growth in commercial mortgage, construction, and consumer loans, partially offset by a reduction in the remaining loan types. Average growth over the first quarter of 2017 was experienced in all loan categories, with the exception of commercial and home equity loans. A portion of this growth compared to the first quarter 2017 was attributable to three separate loan pool purchases totaling $28.9 million.  The loans were individually reviewed and evaluated in accordance with our credit underwriting standards.

 

We continue to make minor modifications on some of our lending programs to mitigate the impact that consumer and business deleveraging has had on our portfolio.  These programs, coupled with economic improvements in our anchor markets and strategic loan purchases, have helped increase overall loan growth.

 

Nonperforming assets (nonaccrual loans and OREO) totaled $10.6 million at March 31, 2018, a decrease of $0.5 million, or 4.3%, from December 31, 2017 and $7.2 million, or 40.2%, from March 31, 2017.  Nonaccrual loans totaled $7.3 million at March 31, 2018, a $0.2 million increase over December 31, 2017 and a $1.0 million decrease from March 31, 2017.  Nonaccrual loan additions totaled $3.8 million for the first quarter of 2018 compared to $5.6 million for the fourth quarter of 2017 and $2.9 million for the first quarter of 2017.  The balance of OREO totaled $3.3 million at March 31, 2018, a decrease of $0.6 million and $6.2 million, respectively, from December 31, 2017 and March 31, 2017.  For the first quarter of 2018, we added properties totaling $0.3 million, sold properties totaling $0.4 million, and recorded valuation adjustments totaling $0.5 million. 

 

Average total deposits were $2.456 billion for the first quarter of 2018, an increase of $77.7 million, or 3.3% over the fourth quarter of 2017, and an increase of $48.8 million, or 2.0% over the first quarter of 2017. The increase in average deposits compared to the fourth quarter of 2017 reflected increases in negotiated NOW and savings accounts.  Average deposits compared to first quarter of 2017 reflected strong growth in noninterest bearing deposits and savings accounts.  Deposit levels remain strong, particularly given the increases in the fed funds rate. Average core deposits continue to experience growth. We monitor deposit rates on an ongoing basis as a prudent pricing discipline remains the key to managing our mix of deposits.

 

 


 

Average borrowings decreased $0.1 million compared to the fourth quarter of 2017 and decreased $4.6 million compared to the first quarter of 2017. Declines over both prior periods were primarily due to payoffs of FHLB advances, partially offset by increases in repurchase agreements.

 

Shareowners’ equity was $288.4 million at March 31, 2018, compared to $284.2 million at December 31, 2017 and $278.1 million at March 31, 2017.  Our leverage ratio was 10.36%, 10.47%, and 9.95%, respectively, on these dates.  Further, at March 31, 2018, our risk-adjusted capital ratio was 17.04% compared to 17.10% and 16.44% at December 31, 2017 and March 31, 2017, respectively.  Our common equity tier 1 ratio was 13.43% at March 31, 2018, compared to 13.42% at December 31, 2017 and 12.77% at March 31, 2017.  All of our 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 $2.9 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, 2017, 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, 2018

Dec 31, 2017

Sep 30, 2017

Jun 30, 2017

Mar 31, 2017

TANGIBLE COMMON EQUITY RATIO

 

 

 

 

 

 

 

 

 

 

 

Shareowners' Equity (GAAP)

 

$

288,360

$

284,210

$

285,201

$

281,513

$

278,059

Less: Goodwill (GAAP)

 

 

84,811

 

84,811

 

84,811

 

84,811

 

84,811

Tangible Shareowners' Equity (non-GAAP)

A

 

203,549

 

199,399

 

200,390

 

196,702

 

193,248

Total Assets (GAAP)

 

 

2,924,832

 

2,898,794

 

2,790,842

 

2,814,843

 

2,895,531

Less: Goodwill (GAAP)

 

 

84,811

 

84,811

 

84,811

 

84,811

 

84,811

Tangible Assets (non-GAAP)

B

$

2,840,021

$

2,813,983

$

2,706,031

$

2,730,032

$

2,810,720

Tangible Common Equity Ratio (non-GAAP)

A/B

 

7.17%

 

7.09%

 

7.41%

 

7.21%

 

6.88%

Actual Diluted Shares Outstanding (GAAP)

C

 

17,088,419

 

17,071,107

 

17,045,326

 

17,025,148

 

16,978,681

Tangible Book Value per Diluted Share (non-GAAP)

A/C

$

11.91

$

11.68

$

11.76

$

11.55

$

11.38

 


 

CAPITAL CITY BANK GROUP, INC.

 

 

 

 

 

 

EARNINGS HIGHLIGHTS

 

 

 

 

 

 

Unaudited

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

(Dollars in thousands, except per share data)

 

Mar 31, 2018

 

Dec 31, 2017

 

Mar 31, 2017

EARNINGS

 

 

 

 

 

 

Net Income

$

5,773

$

3

$

2,744

Diluted Net Income Per Share

$

0.34

$

0.00

$

0.16

PERFORMANCE

 

 

 

 

 

 

Return on Average Assets

 

0.81%

 

0.00%

 

0.39%

Return on Average Equity

 

8.14%

 

0.00%

 

4.00%

Net Interest Margin

 

3.43%

 

3.45%

 

3.21%

Noninterest Income as % of Operating Revenue

 

36.44%

 

37.51%

 

39.19%

Efficiency Ratio

 

81.07%

 

77.50%

 

85.33%

CAPITAL ADEQUACY

 

 

 

 

 

 

Tier 1 Capital

 

16.30%

 

16.33%

 

15.68%

Total Capital

 

17.04%

 

17.10%

 

16.44%

Tangible Common Equity (1)

 

7.17%

 

7.09%

 

6.88%

Leverage

 

10.36%

 

10.47%

 

9.95%

Common Equity Tier 1

 

13.43%

 

13.42%

 

12.77%

Equity to Assets

 

9.86%

 

9.80%

 

9.60%

ASSET QUALITY

 

 

 

 

 

 

Allowance as % of Non-Performing Loans

 

181.26%

 

185.87%

 

160.70%

Allowance as a % of Loans

 

0.80%

 

0.80%

 

0.84%

Net Charge-Offs as % of Average Loans

 

0.20%

 

0.21%

 

0.10%

Nonperforming Assets as % of Loans and ORE

 

0.64%

 

0.67%

 

1.11%

Nonperforming Assets as % of Total Assets

 

0.36%

 

0.38%

 

0.61%

STOCK PERFORMANCE

 

 

 

 

 

 

High

$

26.50

$

26.01

$

21.79

Low

 

22.80

 

22.21

 

19.22

Close

$

24.75

$

22.94

$

21.39

Average Daily Trading Volume

 

21,061

 

19,112

 

23,150

 

 

 

 

 

 

 

(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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2018

 

2017

(Dollars in thousands)

 

First Quarter

 

Fourth Quarter

 

Third Quarter

 

Second Quarter

 

First Quarter

ASSETS

 

 

 

 

 

 

 

 

 

 

Cash and Due From Banks

$

47,804

$

58,419

$

50,420

$

72,801

$

47,650

Funds Sold and Interest Bearing Deposits

 

250,821

 

227,023

 

140,694

 

162,377

 

290,897

Total Cash and Cash Equivalents

 

298,625

 

285,442

 

191,114

 

235,178

 

338,547

 

 

 

 

 

 

 

 

 

 

 

Investment Securities Available for Sale

 

471,836

 

480,911

 

510,846

 

529,686

 

541,102

Investment Securities Held to Maturity

 

225,552

 

216,679

 

184,262

 

157,074

 

158,515

   Total Investment Securities

 

697,388

 

697,590

 

695,108

 

686,760

 

699,617

 

 

 

 

 

 

 

 

 

 

 

Loans Held for Sale

 

4,845

 

4,817

 

7,800

 

8,213

 

7,498

 

 

 

 

 

 

 

 

 

 

 

Loans, Net of Unearned Interest

 

 

 

 

 

 

 

 

 

 

Commercial, Financial, & Agricultural

 

198,775

 

218,166

 

215,963

 

213,544

 

214,595

Real Estate - Construction

 

80,236

 

77,966

 

67,813

 

67,331

 

59,938

Real Estate - Commercial

 

551,309

 

535,707

 

527,331

 

519,140

 

503,868

Real Estate - Residential

 

307,050

 

308,159

 

306,272

 

302,072

 

295,406

Real Estate - Home Equity

 

223,994

 

229,513

 

228,499

 

230,995

 

231,300

Consumer

 

284,356

 

278,622

 

273,670

 

269,539

 

268,921

Other Loans

 

14,988

 

3,747

 

9,311

 

17,057

 

9,586

Overdrafts

 

1,187

 

1,612

 

1,479

 

1,518

 

1,345

Total Loans, Net of Unearned Interest

 

1,661,895

 

1,653,492

 

1,630,338

 

1,621,196

 

1,584,959

Allowance for Loan Losses

 

(13,258)

 

(13,307)

 

(13,339)

 

(13,242)

 

(13,335)

Loans, Net

 

1,648,637

 

1,640,185

 

1,616,999

 

1,607,954

 

1,571,624

 

 

 

 

 

 

 

 

 

 

 

Premises and Equipment, Net

 

90,939

 

91,698

 

92,345

 

92,495

 

93,755

Goodwill

 

84,811

 

84,811

 

84,811

 

84,811

 

84,811

Other Real Estate Owned

 

3,330

 

3,941

 

5,987

 

7,968

 

9,501

Other Assets

 

96,257

 

90,310

 

96,678

 

91,464

 

90,178

Total Other Assets

 

275,337

 

270,760

 

279,821

 

276,738

 

278,245

 

 

 

 

 

 

 

 

 

 

 

Total Assets

$

2,924,832

$

2,898,794

$

2,790,842

$

2,814,843

$

2,895,531

 

 

 

 

 

 

 

 

 

 

 

LIABILITIES

 

 

 

 

 

 

 

 

 

 

Deposits:

 

 

 

 

 

 

 

 

 

 

Noninterest Bearing Deposits

$

890,482

$

874,583

$

870,644

$

842,314

$

836,011

NOW Accounts

 

859,704

 

877,820

 

749,816

 

787,090

 

882,605

Money Market Accounts

 

257,422

 

239,212

 

249,964

 

265,032

 

263,080

Regular Savings Accounts

 

353,996

 

335,140

 

329,742

 

327,560

 

321,160

Certificates of Deposit

 

137,280

 

143,122

 

147,451

 

149,937

 

156,449

Total Deposits

 

2,498,884

 

2,469,877

 

2,347,617

 

2,371,933

 

2,459,305

 

 

 

 

 

 

 

 

 

 

 

Short-Term Borrowings

 

4,893

 

7,480

 

6,777

 

6,105

 

7,603

Subordinated Notes Payable

 

52,887

 

52,887

 

52,887

 

52,887

 

52,887

Other Long-Term Borrowings

 

13,333

 

13,967

 

15,047

 

15,631

 

16,460

Other Liabilities

 

66,475

 

70,373

 

83,313

 

86,774

 

81,217

 

 

 

 

 

 

 

 

 

 

 

Total Liabilities

 

2,636,472

 

2,614,584

 

2,505,641

 

2,533,330

 

2,617,472

 

 

 

 

 

 

 

 

 

 

 

SHAREOWNERS' EQUITY

 

 

 

 

 

 

 

 

 

 

Common Stock

 

171

 

170

 

170

 

170

 

170

Additional Paid-In Capital

 

37,343

 

36,674

 

35,892

 

35,522

 

34,859

Retained Earnings

 

283,990

 

279,410

 

275,013

 

271,646

 

268,934

Accumulated Other Comprehensive Loss, Net of Tax

 

(33,144)

 

(32,044)

 

(25,874)

 

(25,825)

 

(25,904)

 

 

 

 

 

 

 

 

 

 

 

Total Shareowners' Equity

 

288,360

 

284,210

 

285,201

 

281,513

 

278,059

 

 

 

 

 

 

 

 

 

 

 

Total Liabilities and Shareowners' Equity

$

2,924,832

$

2,898,794

$

2,790,842

$

2,814,843

$

2,895,531

 

 

 

 

 

 

 

 

 

 

 

OTHER BALANCE SHEET DATA

 

 

 

 

 

 

 

 

 

 

Earning Assets

$

2,614,949

$

2,582,922

$

2,473,940

$

2,478,546

$

2,582,971

Interest Bearing Liabilities

 

1,679,515

 

1,669,628

 

1,551,684

 

1,604,242

 

1,700,244

 

 

 

 

 

 

 

 

 

 

 

Book Value Per Diluted Share

$

16.87

$

16.65

$

16.73

$

16.54

$

16.38

Tangible Book Value Per Diluted Share(1)

 

11.91

 

11.68

 

11.76

 

11.55

 

11.38

 

 

 

 

 

 

 

 

 

 

 

Actual Basic Shares Outstanding

 

17,044

 

16,989

 

16,966

 

16,964

 

16,954

Actual Diluted Shares Outstanding

 

17,088

 

17,071

 

17,045

 

17,025

 

16,979

 

 

 

 

 

 

 

 

 

 

 

(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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2018

 

2017

(Dollars in thousands, except per share data)

 

First Quarter

 

Fourth Quarter

 

Third Quarter

 

Second Quarter

 

First Quarter

 

 

 

 

 

 

 

 

 

 

 

INTEREST INCOME

 

 

 

 

 

 

 

 

 

 

Interest and Fees on Loans

$

19,535

$

19,513

$

19,479

$

18,720

$

18,005

Investment Securities

 

2,762

 

2,520

 

2,416

 

2,169

 

2,042

Funds Sold

 

917

 

594

 

446

 

533

 

493

Total Interest Income

 

23,214

 

22,627

 

22,341

 

21,422

 

20,540

 

 

 

 

 

 

 

 

 

 

 

INTEREST EXPENSE

 

 

 

 

 

 

 

 

 

 

Deposits

 

868

 

590

 

530

 

388

 

281

Short-Term Borrowings

 

8

 

5

 

15

 

17

 

45

Subordinated Notes Payable

 

475

 

431

 

420

 

404

 

379

Other Long-Term Borrowings

 

100

 

112

 

115

 

117

 

99

Total Interest Expense

 

1,451

 

1,138

 

1,080

 

926

 

804

Net Interest Income

 

21,763

 

21,489

 

21,261

 

20,496

 

19,736

Provision for Loan Losses

 

745

 

826

 

490

 

589

 

310

Net Interest Income after Provision for

  Loan Losses

 

21,018

 

20,663

 

20,771

 

19,907

 

19,426

 

 

 

 

 

 

 

 

 

 

 

NONINTEREST INCOME

 

 

 

 

 

 

 

 

 

 

Deposit Fees

 

4,872

 

5,040

 

5,153

 

5,052

 

5,090

Bank Card Fees

 

2,811

 

2,830

 

2,688

 

2,870

 

2,803

Wealth Management Fees

 

2,173

 

2,172

 

2,197

 

2,073

 

1,842

Mortgage Banking Fees

 

1,057

 

1,410

 

1,480

 

1,556

 

1,308

Other

 

1,564

 

1,445

 

1,478

 

1,584

 

1,675

Total Noninterest Income

 

12,477

 

12,897

 

12,996

 

13,135

 

12,718

 

 

 

 

 

 

 

 

 

 

 

NONINTEREST EXPENSE

 

 

 

 

 

 

 

 

 

 

Compensation

 

16,366

 

15,740

 

16,349

 

16,292

 

16,496

Occupancy, Net

 

4,551

 

4,400

 

4,501

 

4,555

 

4,381

Other Real Estate, Net

 

626

 

355

 

(118)

 

315

 

583

Other

 

6,363

 

6,402

 

5,975

 

6,759

 

6,462

Total Noninterest Expense

 

27,906

 

26,897

 

26,707

 

27,921

 

27,922

 

 

 

 

 

 

 

 

 

 

 

OPERATING PROFIT

 

5,589

 

6,663

 

7,060

 

5,121

 

4,222

Income Tax (Benefit) Expense

 

(184)

 

6,660

 

2,505

 

1,560

 

1,478

NET INCOME

$

5,773

$

3

$

4,555

$

3,561

$

2,744

 

 

 

 

 

 

 

 

 

 

 

PER SHARE DATA

 

 

 

 

 

 

 

 

 

 

Basic Net Income

$

0.34

$

0.00

$

0.27

$

0.21

$

0.16

Diluted Net Income

 

0.34

 

0.00

 

0.27

 

0.21

 

0.16

Cash Dividend

$

0.07

$

0.07

$

0.07

$

0.05

$

0.05

AVERAGE SHARES

 

 

 

 

 

 

 

 

 

 

Basic 

 

17,028

 

16,967

 

16,965

 

16,955

 

16,919

Diluted 

 

17,073

 

17,050

 

17,044

 

17,016

 

16,944

 


 

CAPITAL CITY BANK GROUP, INC.

 

 

 

 

 

 

 

 

 

 

ALLOWANCE FOR LOAN LOSSES

 

 

 

 

 

 

 

 

 

 

AND RISK ELEMENT ASSETS

 

 

 

 

 

 

 

 

 

 

Unaudited

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2018

 

2017

(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

$

13,307

$

13,339

$

13,242

$

13,335

$

13,431

Provision for Loan Losses

 

745

 

826

 

490

 

589

 

310

Net Charge-Offs

 

794

 

858

 

393

 

682

 

406

Balance at End of Period

$

13,258

$

13,307

$

13,339

$

13,242

$

13,335

As a % of Loans

 

0.80%

 

0.80%

 

0.82%

 

0.81%

 

0.84%

As a % of Nonperforming Loans

 

181.26%

 

185.87%

 

203.39%

 

166.23%

 

160.70%

 

 

 

 

 

 

 

 

 

 

 

CHARGE-OFFS

 

 

 

 

 

 

 

 

 

 

Commercial, Financial and Agricultural

$

182

$

664

$

276

$

324

$

93

Real Estate - Construction

 

7

 

-

 

-

 

-

 

-

Real Estate - Commercial

 

290

 

42

 

94

 

478

 

71

Real Estate - Residential

 

107

 

126

 

125

 

44

 

116

Real Estate - Home Equity

 

158

 

48

 

50

 

-

 

92

Consumer

 

695

 

577

 

455

 

537

 

624

Total Charge-Offs

$

1,439

$

1,457

$

1,000

$

1,383

$

996

 

 

 

 

 

 

 

 

 

 

 

RECOVERIES

 

 

 

 

 

 

 

 

 

 

Commercial, Financial and Agricultural

$

166

$

113

$

79

$

40

$

81

Real Estate - Construction

 

1

 

-

 

50

 

-

 

-

Real Estate - Commercial

 

123

 

24

 

69

 

58

 

23

Real Estate - Residential

 

84

 

141

 

60

 

202

 

213

Real Estate - Home Equity

 

61

 

67

 

84

 

39

 

29

Consumer

 

210

 

254

 

265

 

362

 

244

Total Recoveries

$

645

$

599

$

607

$

701

$

590

 

 

 

 

 

 

 

 

 

 

 

NET CHARGE-OFFS

$

794

$

858

$

393

$

682

$

406

 

 

 

 

 

 

 

 

 

 

 

Net Charge-Offs as a % of Average Loans (1)

 

0.20%

 

0.21%

 

0.10%

 

0.17%

 

0.10%

 

 

 

 

 

 

 

 

 

 

 

RISK ELEMENT ASSETS

 

 

 

 

 

 

 

 

 

 

Nonaccruing Loans

$

7,314

$

7,159

$

6,558

$

7,966

$

8,298

Other Real Estate Owned

 

3,330

 

3,941

 

5,987

 

7,968

 

9,501

Total Nonperforming Assets

$

10,644

$

11,100

$

12,545

$

15,934

$

17,799

 

 

 

 

 

 

 

 

 

 

 

Past Due Loans 30-89 Days

$

4,268

$

4,579

$

5,687

$

3,789

$

3,263

Past Due Loans 90 Days or More

 

-

 

36

 

-

 

-

 

-

Classified Loans

 

31,709

 

31,002

 

36,545

 

41,322

 

40,978

Performing Troubled Debt Restructuring's

$

31,472

$

32,164

$

33,427

$

35,436

$

36,555

 

 

 

 

 

 

 

 

 

 

 

Nonperforming Loans as a % of Loans

 

0.44%

 

0.43%

 

0.40%

 

0.49%

 

0.52%

Nonperforming Assets as a % of Loans and Other Real Estate

 

0.64%

 

0.67%

 

0.76%

 

0.97%

 

1.11%

Nonperforming Assets as a % of  Total Assets

 

0.36%

 

0.38%

 

0.45%

 

0.57%

 

0.61%

 

 

 

 

 

 

 

 

 

 

 

(1) Annualized

 

 

 

 

 

 

 

 

 

 

 


 

CAPITAL CITY BANK GROUP, INC.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

AVERAGE BALANCE AND INTEREST RATES(1)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Unaudited

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

First Quarter 2018

 

 

Fourth Quarter 2017

 

 

Third Quarter 2017

 

 

Second Quarter 2017

 

 

First Quarter 2017

 

(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

$

1,647,612

$

19,636

 

4.83

%

$

1,640,738

$

19,696

 

4.76

%

$

1,638,578

$

19,672

 

4.76

%

$

1,608,629

 

18,880

 

4.71

%

$

1,585,561

$

18,137

 

4.64

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Investment Securities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Taxable Investment Securities

 

619,137

 

2,523

 

1.64

 

 

602,353

 

2,263

 

1.50

 

 

588,518

 

2,150

 

1.45

 

 

591,825

 

1,898

 

1.28

 

 

600,528

 

1,784

 

1.20

 

Tax-Exempt Investment Securities

 

84,800

 

318

 

1.50

 

 

94,329

 

393

 

1.67

 

 

98,463

 

407

 

1.65

 

 

100,742

 

414

 

1.64

 

 

97,965

 

396

 

1.62

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Investment Securities

 

703,937

 

2,841

 

1.62

 

 

696,682

 

2,656

 

1.52

 

 

686,981

 

2,557

 

1.48

 

 

692,567

 

2,312

 

1.34

 

 

698,493

 

2,180

 

1.26

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Funds Sold

 

240,916

 

917

 

1.54

 

 

174,565

 

594

 

1.35

 

 

140,728

 

446

 

1.26

 

 

200,834

 

533

 

1.06

 

 

245,153

 

493

 

0.81

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Earning Assets

 

2,592,465

$

23,394

 

3.66

%

 

2,511,985

$

22,946

 

3.63

%

 

2,466,287

$

22,675

 

3.65

%

 

2,502,030

$

21,725

 

3.48

%

 

2,529,207

$

20,810

 

3.33

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and Due From Banks

 

52,711

 

 

 

 

 

 

51,235

 

 

 

 

 

 

51,880

 

 

 

 

 

 

52,312

 

 

 

 

 

 

48,906

 

 

 

 

 

Allowance for Loan Losses

 

(13,651)

 

 

 

 

 

 

(13,524)

 

 

 

 

 

 

(13,542)

 

 

 

 

 

 

(13,662)

 

 

 

 

 

 

(13,436)

 

 

 

 

 

Other Assets

 

260,595

 

 

 

 

 

 

272,755

 

 

 

 

 

 

275,335

 

 

 

 

 

 

276,799

 

 

 

 

 

 

280,463

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Assets

$

2,892,120

 

 

 

 

 

$

2,822,451

 

 

 

 

 

$

2,779,960

 

 

 

 

 

$

2,817,479

 

 

 

 

 

$

2,845,140

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

LIABILITIES:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest Bearing Deposits

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

NOW Accounts

$

863,175

$

659

 

0.31

%

$

782,133

$

400

 

0.20

%

$

755,620

$

339

 

0.18

%

$

806,621

$

222

 

0.11

%

$

880,707

$

134

 

0.06

%

Money Market Accounts

 

246,576

 

103

 

0.17

 

 

249,953

 

80

 

0.13

 

 

262,486

 

80

 

0.12

 

 

261,726

 

57

 

0.09

 

 

259,106

 

35

 

0.06

 

Savings Accounts

 

343,987

 

42

 

0.05

 

 

333,703

 

41

 

0.05

 

 

327,675

 

40

 

0.05

 

 

322,833

 

39

 

0.05

 

 

311,212

 

38

 

0.05

 

Time Deposits

 

140,359

 

64

 

0.18

 

 

145,622

 

69

 

0.19

 

 

148,652

 

71

 

0.19

 

 

152,811

 

70