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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):  July 24, 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) 402-7821

 

                                                                                                                   

(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 July 24, 2018, Capital City Bank Group, Inc. (“(CCBG”) issued an earnings press release reporting CCBG’s financial results for the three month period and six months ended June 30, 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 July 24, 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:   July 24, 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 July 24, 2018

 

 

 


(Back To Top)

Section 2: EX-99.1 (EXHIBIT 99.1)

 

 

Capital City Bank Group, Inc.

Reports Second Quarter 2018 Results

 

TALLAHASSEE, Fla. (July 24, 2018) – Capital City Bank Group, Inc. (NASDAQ: CCBG) today reported net income of $6.0 million, or $0.35 per diluted share for the second quarter of 2018 compared to net income of $5.8 million, or $0.34 per diluted share for the first quarter of 2018, and $3.6 million, or $0.21 per diluted share, for the second quarter of 2017.  For the first six months of 2018, net income totaled $11.8 million, or $0.69 per diluted share, compared to net income of $6.3 million, or $0.37 per diluted share for the same period of 2017.

 

Net income for the first six months of 2018 included tax benefits totaling $2.9 million, or $0.17 per diluted share (1Q - $1.5 million, or $0.09 per diluted share and 2Q - $1.4 million, or $0.08 per diluted share) related to 2017 plan year pension plan contributions.        

 

HIGHLIGHTS

·       Net interest income up 4.6% sequentially and 10.7% over prior year

·       Net interest margin of 3.58%, up 15 basis points over prior quarter

·       Period-end loan growth of $66 million, or 4.0% over prior quarter

·       Strong year over year growth in average deposit balances of $54 million, or 2.3%

·       Year-to-date net charge-offs at 16 basis points continues to reflect the quality of our loan portfolio

·       Common equity tier 1 ratio of 13.5% and total risk based capital ratio of 17.0%

 

“I am very encouraged by our results in the first half and particularly pleased with the loan growth and margin expansion achieved in the second quarter,” said William G. Smith, Jr., Chairman, President and CEO. “Rising rates, loan growth and a phenomenal core deposit base are all contributing to higher net interest income. Credit quality continues to improve and the strength of our Florida and Georgia economies is driving continued improvement in our market demographics. Lowering our efficiency ratio is a top priority, and we have multiple strategies in place to grow revenues and manage expenses. There is more to be done, but I am pleased with our progress as we remain focused on strategies that produce long-term value for our shareowners.”

 

Compared to the first quarter of 2018, the $0.5 million increase in operating profit reflected a $1.0 million increase in net interest income and higher noninterest income of $0.1 million, partially offset by higher noninterest expense of $0.5 million and a $0.1 million increase in the loan loss provision.

 

Compared to the second quarter of 2017, the $1.0 million increase in operating profit was attributable to higher net interest income of $2.3 million, partially offset by lower noninterest income of $0.6 million, a $ 0.5 million increase in noninterest expense, and a $0.2 million increase in the loan loss provision.

 

The increase in operating profit for the first six months of 2018 versus the comparable period of 2017 was attributable to higher net interest income of $4.3 million that was partially offset by lower noninterest income of $0.8 million, higher noninterest expense of $0.5 million, and $0.7 million increase in the loan loss provision.

 

Our return on average assets (“ROA”) was 0.84% and our return on average equity (“ROE”) was 8.25% for the second quarter of 2018.  These metrics were 0.81% and 8.14% for the first quarter of 2018, respectively, and 0.51% and 5.07% for the second quarter of 2017, respectively.  For the first six months of 2018, our ROA was 0.83% and our ROE was 8.20% compared to 0.45% and 4.54%, respectively, for the same period of 2017.

 

Discussion of Operating Results

 

Tax-equivalent net interest income for the second quarter of 2018 was $22.9 million compared to $21.9 million for the first quarter of 2018 and $20.8 million for the second quarter of 2017.  The increase in tax-equivalent net interest income compared to both prior periods reflected higher interest rates and a favorable shift in the earning asset mix. Higher rates were earned on overnight funds, investment securities, and variable rate loans, partially offset by a higher cost on our negotiated rate deposits.  For the first six months of 2018, tax-equivalent net interest income totaled $44.9 million compared to $40.8 million for the comparable period in 2017.  The year-over-year increase was driven by growth in the loan and investment portfolios, coupled with higher short-term rates, partially offset by a higher rate paid on negotiated rate deposits.

 

The federal funds target rate was increased seven times since December 2015 to 2.00% by the end of the second 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 deposit products, we continue to prudently manage our overall cost of funds, which was 26 basis points for the second quarter of 2018, and 23 basis points for the first quarter of 2018. Due to highly competitive fixed-rate loan pricing across most markets, we have continued to review our loan pricing and make adjustments where appropriate and prudent.   

 

 


 

Our net interest margin for the second quarter of 2018 was 3.58%, an increase of 15 basis points compared to the first quarter of 2018 and an increase of 25 basis points from the second quarter of 2017.  For the first six months of 2018, the net interest margin increased 24 basis points to 3.51% compared to the same period of 2017. The increase in the margin as compared to all respective periods reflected rising interest rates and a favorable shift in our earning asset mix, which has produced higher net interest income in each period. 

 

The provision for loan losses for the second quarter of 2018 was $0.8 million compared to $0.7 million for the first quarter of 2018 and $0.6 million for the second quarter of 2017.  For the six months ended June 30, 2018, the loan loss provision was $1.6 million compared to $0.9 million in 2017.  The higher provision in 2018 reflected growth in the loan portfolio.  At June 30, 2018, the allowance for loan losses of $13.6 million represented 0.78% of outstanding loans (net of overdrafts) and provided coverage of 236% of nonperforming loans compared to 0.80% and 181%, respectively, at March 31, 2018 and 0.80% and 186%, respectively, at December 31, 2017.

 

Noninterest income for the second quarter of 2018 totaled $12.5 million, an increase of $0.1 million, or 0.5%, over the first quarter of 2018 and a $0.6 million, or 4.5%, decrease from the second quarter of 2017.  For the first six months of 2018, noninterest income totaled $25.0 million, a $0.8 million, or 3.2%, decrease from the same period of 2017, primarily due to lower mortgage banking fees of $0.6 million and deposit fees of $0.4 million, partially offset by higher wealth management fees of $0.3 million.  The decrease from the second quarter of 2017 also reflected lower mortgage banking fees and deposit fees.  The lower level of mortgage banking fees was due to a slowdown in secondary market loan production as adjustable rate loan production has picked up momentum and is being booked into our loan portfolio.  Total (secondary market sales and portfolio) residential loan production during the first two quarters of 2018 was comparable to the prior year.  The decrease in deposit fees was attributable to lower overdraft fees and reflected a reduction in accounts utilizing our overdraft protection product.  The increase in wealth management fees over the first six months of 2017 was primarily due to higher trust fees and reflected growth in assets under management.                 

 

Noninterest expense for the second quarter of 2018 totaled $28.4 million, an increase of $0.5 million, or 1.7%, over the first quarter of 2018 and second quarter of 2017.  For the first six months of 2018, noninterest expense totaled $56.3 million, a $0.5 million, or 0.8%, increase over the same period of 2017.  The increase over the first quarter of 2018 primarily reflected higher professional fees of $0.2 million and a $0.2 million expense for our VISA Class B share swap contract related to VISA’s funding of their litigation reserve.  Compared to the three and six month periods of 2017, the increase was primarily attributable to higher professional fees.    

 

We realized an income tax benefit of $0.1 million for the six months ended June 30, 2018 which reflected two discrete tax benefit items totaling $2.9 million resulting from the effect of federal tax reform, enacted in December 2017, on pension plan contributions made in 2018.  The discrete tax item for the first quarter of 2018 totaled $1.5 million and the item for the second quarter of 2018 totaled $1.4 million.  Absent these discrete items, our effective tax rate was approximately 24%. 

 

Discussion of Financial Condition

 

Average earning assets were $2.566 billion for the second quarter of 2018, a decrease of $26.5 million, or 1.0%, from the first quarter of 2018, and an increase of $54.0 million, or 2.2%, over the fourth quarter of 2017.  The change in average earning assets compared to the first quarter 2018 was attributable to decreases in our short-term investments, primarily due to a decline in our seasonal public fund balances.  The change in average earning assets over the fourth quarter 2017 was attributable to growth in our loan and investment portfolios primarily funded by increases in our noninterest bearing deposits and savings accounts.

 

We maintained an average net overnight funds (deposits with banks plus fed funds sold less fed funds purchased) sold position of $158.7 million during the second quarter of 2018 compared to an average net overnight funds sold position of $240.9 million in the first quarter of 2018 and $174.6 million in the fourth quarter of 2017.  The decrease in average net overnight funds compared to all prior periods reflected growth in our loan and investment portfolios.  Additionally, part of the decrease compared to the prior quarter was also attributable to the decline in our public deposits.  

 

Average loans increased $43.7 million, or 2.7% compared to the first quarter of 2018, and have grown $50.5 million, or 3.1% compared to the fourth quarter of 2017.  The increase compared to the prior quarter reflected growth in all loans types except home equity loans. Growth over the fourth quarter of 2017 was experienced in all loan products except for commercial and home equity loans.  During 2018, we have purchased a $4.0 million pool of adjustable rate residential loans (late in first quarter) and a $12.1 million pool of fixed and adjustable rate commercial real estate loans (late in second quarter).

 

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

 

 


 

Nonperforming assets (nonaccrual loans and OREO) totaled $9.1 million at June 30, 2018, a decrease of $1.5 million, or 14.4%, from March 31, 2018 and $2.0 million, or 17.9%, from December 31, 2017.  Nonaccrual loans totaled $5.7 million at June 30, 2018, a $1.6 million decrease from March 31, 2018 and a $1.4 million decrease from December 31, 2017.  Nonaccrual loan additions totaled $2.5 million for the second quarter of 2018 compared to $3.8 million for the first quarter of 2018 and $5.6 million for the fourth quarter of 2017.  The balance of OREO totaled $3.4 million at June 30, 2018, an increase of $0.1 million over March 31, 2018 and a decrease of $0.6 million from December 31, 2017.  For the second quarter of 2018, we added properties totaling $0.5 million, sold properties totaling $0.3 million, and recorded valuation adjustments totaling $0.1 million. 

 

Average total deposits were $2.432 billion for the second quarter of 2018, a decrease of $24.1 million, or 1.0%, from the first quarter of 2018, and an increase of $53.5 million, or 2.3% over the fourth quarter of 2017.  The decline in deposits compared to the first quarter of 2018 reflected lower public fund NOW accounts and certificates of deposit balances, partially offset by increases in all other deposit types.  The increase in deposits when compared to the fourth quarter of 2017 reflected growth in all deposit products except certificates of deposit.  Public fund accounts typically peak in the first quarter and trend downwards through the fourth quarter due to the cycle of tax receipts.

 

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 for the second quarter 2018 decreased $2.9 million compared to the first quarter 2018, and declined $3.0 million compared to the fourth quarter of 2017. Decreases occurred in both short-term and long-term borrowings as we reduced our repurchase agreements and Federal Home Loan Bank pay-downs of match funded advances. 

 

Shareowners’ equity was $293.6 million at June 30, 2018, compared to $288.4 million at March 31, 2018 and $284.2 million at December 31, 2017.  Our leverage ratio was 10.69%, 10.36%, and 10.47%, respectively, on these dates.  Further, at June 30, 2018, our risk-adjusted capital ratio was 17.00% compared to 17.05% and 17.10% at March 31, 2018 and December 31, 2017, respectively.  Our common equity tier 1 ratio was 13.46% at June 30, 2018, compared to 13.44% at March 31, 2018 and 13.42% at December 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, 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 reconciliation is provided below.

 

(Dollars in Thousands)

 

Jun 30, 2018

Mar 31, 2018

Dec 31, 2017

Sep 30, 2017

Jun 30, 2017

Shareowners' Equity (GAAP)

 

$

293,571

$

288,360

$

284,210

$

285,201

$

281,513

Less: Goodwill (GAAP)

 

 

84,811

 

84,811

 

84,811

 

84,811

 

84,811

Tangible Shareowners' Equity (non-GAAP)

A

 

208,760

 

203,549

 

199,399

 

200,390

 

196,702

Total Assets (GAAP)

 

 

2,880,278

 

2,924,832

 

2,898,794

 

2,790,842

 

2,814,843

Less: Goodwill (GAAP)

 

 

84,811

 

84,811

 

84,811

 

84,811

 

84,811

Tangible Assets (non-GAAP)

B

$

2,795,467

$

2,840,021

$

2,813,983

$

2,706,031

$

2,730,032

Tangible Common Equity Ratio (non-GAAP)

A/B

 

7.47%

 

7.17%

 

7.09%

 

7.41%

 

7.21%

Actual Diluted Shares Outstanding (GAAP)

C

 

17,114,380

 

17,088,419

 

17,071,107

 

17,045,326

 

17,025,148

Tangible Book Value per Diluted Share (non-GAAP)

A/C

$

12.20

$

11.91

$

11.68

$

11.76

$

11.55

 


 

CAPITAL CITY BANK GROUP, INC.

 

 

 

 

 

 

 

 

 

 

EARNINGS HIGHLIGHTS

 

 

 

 

 

 

 

 

 

 

Unaudited

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

Six Months Ended

(Dollars in thousands, except per share data)

 

Jun 30, 2018

 

Mar 31, 2018

 

Jun 30, 2017

 

Jun 30, 2018

 

Jun 30, 2017

 

 

 

 

 

 

 

 

 

 

 

EARNINGS

 

 

 

 

 

 

 

 

 

 

Net Income

$

6,003

$

5,773

$

3,561

$

11,776

$

6,305

Net Income Per Common Share

$

0.35

$

0.34

$

0.21

$

0.69

$

0.37

PERFORMANCE

 

 

 

 

 

 

 

 

 

 

Return on Average Assets

 

0.84%

 

0.81%

 

0.51%

 

0.83%

 

0.45%

Return on Average Equity

 

8.25%

 

8.14%

 

5.07%

 

8.20%

 

4.54%

Net Interest Margin

 

3.58%

 

3.43%

 

3.33%

 

3.51%

 

3.27%

Noninterest Income as % of Operating Revenue

 

35.52%

 

36.44%

 

39.05%

 

35.97%

 

39.12%

Efficiency Ratio

 

80.07%

 

81.07%

 

82.28%

 

80.57%

 

83.78%

CAPITAL ADEQUACY

 

 

 

 

 

 

 

 

 

 

Tier 1 Capital Ratio

 

16.25%

 

16.31%

 

15.58%

 

16.25%

 

15.58%

Total Capital Ratio

 

17.00%

 

17.05%

 

16.32%

 

17.00%

 

16.32%

Tangible Common Equity Ratio

 

7.47%

 

7.17%

 

7.21%

 

7.47%

 

7.21%

Leverage Ratio

 

10.69%

 

10.36%

 

10.20%

 

10.69%

 

10.20%

Common Equity Tier 1 Ratio

 

13.46%

 

13.44%

 

12.72%

 

13.46%

 

12.72%

Equity to Assets

 

10.19%

 

9.86%

 

10.00%

 

10.19%

 

10.00%

ASSET QUALITY

 

 

 

 

 

 

 

 

 

 

Allowance as % of Non-Performing Loans

 

236.25%

 

181.26%

 

166.23%

 

236.25%

 

166.23%

Allowance as a % of Loans

 

0.78%

 

0.80%

 

0.81%

 

0.78%

 

0.81%

Net Charge-Offs as % of Average Loans

 

0.12%

 

0.20%

 

0.17%

 

0.16%

 

0.14%

Nonperforming Assets as % of Loans and ORE

 

0.52%

 

0.64%

 

0.97%

 

0.52%

 

0.97%

Nonperforming Assets as % of Total Assets

 

0.32%

 

0.36%

 

0.57%

 

0.32%

 

0.57%

STOCK PERFORMANCE

 

 

 

 

 

 

 

 

 

 

High

$

25.99

$

26.50

$

22.39

$

26.50

$

22.39

Low

 

22.28

 

22.80

 

17.68

 

22.28

 

17.68

Close

$

23.63

$

24.75

$

20.42

$

23.63

$

20.42

Average Daily Trading Volume

 

25,246

 

21,061

 

23,349

 

23,204

 

23,251

 


 

CAPITAL CITY BANK GROUP, INC.

 

 

 

 

 

 

 

 

 

 

CONSOLIDATED STATEMENT OF FINANCIAL CONDITION

 

 

 

 

 

 

Unaudited

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2018

 

2017

(Dollars in thousands)

 

Second Quarter

 

First Quarter

 

Fourth Quarter

 

Third Quarter

 

Second Quarter

ASSETS

 

 

 

 

 

 

 

 

 

 

Cash and Due From Banks

$

56,573

$

47,804

$

58,419

$

50,420

$

72,801

Funds Sold and Interest Bearing Deposits

 

107,066

 

250,821

 

227,023

 

140,694

 

162,377

Total Cash and Cash Equivalents

 

163,639

 

298,625

 

285,442

 

191,114

 

235,178

 

 

 

 

 

 

 

 

 

 

 

Investment Securities Available for Sale

 

493,662

 

471,836

 

480,911

 

510,846

 

529,686

Investment Securities Held to Maturity

 

236,764

 

225,552

 

216,679

 

184,262

 

157,074

   Total Investment Securities

 

730,426

 

697,388

 

697,590

 

695,108

 

686,760

 

 

 

 

 

 

 

 

 

 

 

Loans Held for Sale

 

8,246

 

4,845

 

4,817

 

7,800

 

8,213

 

 

 

 

 

 

 

 

 

 

 

Loans, Net of Unearned Interest

 

 

 

 

 

 

 

 

 

 

Commercial, Financial, & Agricultural

 

222,406

 

198,775

 

218,166

 

215,963

 

213,544

Real Estate - Construction

 

88,169

 

80,236

 

77,966

 

67,813

 

67,331

Real Estate - Commercial

 

575,993

 

551,309

 

535,707

 

527,331

 

519,140

Real Estate - Residential

 

320,296

 

307,050

 

308,159

 

306,272

 

302,072

Real Estate - Home Equity

 

218,851

 

223,994

 

229,513

 

228,499

 

230,995

Consumer

 

285,599

 

284,356

 

278,622

 

273,670

 

269,539

Other Loans

 

11,648

 

14,988

 

3,747

 

9,311

 

17,057

Overdrafts

 

1,513

 

1,187

 

1,612

 

1,479

 

1,518

Total Loans, Net of Unearned Interest

 

1,724,475

 

1,661,895

 

1,653,492

 

1,630,338

 

1,621,196

Allowance for Loan Losses

 

(13,563)

 

(13,258)

 

(13,307)

 

(13,339)

 

(13,242)

Loans, Net

 

1,710,912

 

1,648,637

 

1,640,185

 

1,616,999

 

1,607,954

 

 

 

 

 

 

 

 

 

 

 

Premises and Equipment, Net

 

90,000

 

90,939

 

91,698

 

92,345

 

92,495

Goodwill

 

84,811

 

84,811

 

84,811

 

84,811

 

84,811

Other Real Estate Owned

 

3,373

 

3,330

 

3,941

 

5,987

 

7,968

Other Assets

 

88,871

 

96,257

 

90,310

 

96,678

 

91,464

Total Other Assets

 

267,055

 

275,337

 

270,760

 

279,821

 

276,738

 

 

 

 

 

 

 

 

 

 

 

Total Assets

$

2,880,278

$

2,924,832

$

2,898,794

$

2,790,842

$

2,814,843

 

 

 

 

 

 

 

 

 

 

 

LIABILITIES

 

 

 

 

 

 

 

 

 

 

Deposits:

 

 

 

 

 

 

 

 

 

 

Noninterest Bearing Deposits

$

937,241

$

890,482

$

874,583

$

870,644

$

842,314

NOW Accounts

 

778,131

 

859,704

 

877,820

 

749,816

 

787,090

Money Market Accounts

 

257,965

 

257,422

 

239,212

 

249,964

 

265,032

Regular Savings Accounts

 

354,156

 

353,996

 

335,140

 

329,742

 

327,560

Certificates of Deposit

 

131,697

 

137,280

 

143,122

 

147,451

 

149,937

Total Deposits

 

2,459,190

 

2,498,884

 

2,469,877

 

2,347,617

 

2,371,933

 

 

 

 

 

 

 

 

 

 

 

Short-Term Borrowings

 

7,021

 

4,893

 

7,480

 

6,777

 

6,105

Subordinated Notes Payable

 

52,887

 

52,887

 

52,887

 

52,887

 

52,887

Other Long-Term Borrowings

 

12,897

 

13,333

 

13,967

 

15,047

 

15,631

Other Liabilities

 

54,712

 

66,475

 

70,373

 

83,313

 

86,774

 

 

 

 

 

 

 

 

 

 

 

Total Liabilities

 

2,586,707

 

2,636,472

 

2,614,584

 

2,505,641

 

2,533,330

 

 

 

 

 

 

 

 

 

 

 

SHAREOWNERS' EQUITY

 

 

 

 

 

 

 

 

 

 

Common Stock

 

171

 

171

 

170

 

170

 

170

Additional Paid-In Capital

 

37,932

 

37,343

 

36,674

 

35,892

 

35,522

Retained Earnings

 

288,800

 

283,990

 

279,410

 

275,013

 

271,646

Accumulated Other Comprehensive Loss, Net of Tax

 

(33,332)

 

(33,144)

 

(32,044)

 

(25,874)

 

(25,825)

 

 

 

 

 

 

 

 

 

 

 

Total Shareowners' Equity

 

293,571

 

288,360

 

284,210

 

285,201

 

281,513

 

 

 

 

 

 

 

 

 

 

 

Total Liabilities and Shareowners' Equity

$

2,880,278

$

2,924,832

$

2,898,794

$

2,790,842

$

2,814,843

 

 

 

 

 

 

 

 

 

 

 

OTHER BALANCE SHEET DATA

 

 

 

 

 

 

 

 

 

 

Earning Assets

$

2,570,213

$

2,614,949

$

2,582,922

$

2,473,940

$

2,478,546

Interest Bearing Liabilities

 

1,594,754

 

1,679,515

 

1,669,628

 

1,551,684

 

1,604,242

 

 

 

 

 

 

 

 

 

 

 

Book Value Per Diluted Share

$

17.15

$

16.87

$

16.65

$

16.73

$

16.54

Tangible Book Value Per Diluted Share

 

12.20

 

11.91

 

11.68

 

11.76

 

11.55

 

 

 

 

 

 

 

 

 

 

 

Actual Basic Shares Outstanding

 

17,056

 

17,044

 

16,989

 

16,966

 

16,964

Actual Diluted Shares Outstanding

 

17,114

 

17,088

 

17,071

 

17,045

 

17,025

 


 

CAPITAL CITY BANK GROUP, INC.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

CONSOLIDATED STATEMENT OF OPERATIONS

 

 

 

 

 

 

 

 

 

 

 

Unaudited

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Six Months Ended

 

 

2018

 

2017

 

June 30,

(Dollars in thousands, except per share data)

 

Second Quarter

 

First Quarter

 

Fourth Quarter

 

Third Quarter

 

Second Quarter

 

2018

 

2017

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

INTEREST INCOME

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest and Fees on Loans

$

20,533

$

19,535

$

19,513

$

19,479

$

18,720

$

40,068

$

36,725

Investment Securities

 

3,156

 

2,762

 

2,520

 

2,416

 

2,169

 

5,918

 

4,211

Funds Sold

 

730

 

917

 

594

 

446

 

533

 

1,647

 

1,026

Total Interest Income

 

24,419

 

23,214

 

22,627

 

22,341

 

21,422

 

47,633

 

41,962

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

INTEREST EXPENSE

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Deposits

 

995

 

868

 

590

 

530

 

388

 

1,863

 

669

Short-Term Borrowings

 

8

 

8

 

5

 

15

 

17

 

16

 

62

Subordinated Notes Payable

 

552

 

475

 

431

 

420

 

404

 

1,027

 

783

Other Long-Term Borrowings

 

94

 

100

 

112

 

115

 

117

 

194

 

216

Total Interest Expense

 

1,649

 

1,451

 

1,138

 

1,080

 

926

 

3,100

 

1,730

Net Interest Income

 

22,770

 

21,763

 

21,489

 

21,261

 

20,496

 

44,533

 

40,232

Provision for Loan Losses

 

815

 

745

 

826

 

490

 

589

 

1,560

 

899

Net Interest Income after Provision for

  Loan Losses

 

21,955

 

21,018

 

20,663

 

20,771

 

19,907

 

42,973

 

39,333

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

NONINTEREST INCOME

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Deposit Fees

 

4,842

 

4,872

 

5,040

 

5,153

 

5,052

 

9,714

 

10,142

Bank Card Fees

 

2,909

 

2,811

 

2,830

 

2,688

 

2,870

 

5,720

 

5,673

Wealth Management Fees

 

2,037

 

2,173

 

2,172

 

2,197

 

2,073

 

4,210

 

3,915

Mortgage Banking Fees

 

1,206

 

1,057

 

1,410

 

1,480

 

1,556

 

2,263

 

2,864

Other

 

1,548

 

1,564

 

1,445

 

1,478

 

1,584

 

3,112

 

3,259

Total Noninterest Income

 

12,542

 

12,477

 

12,897

 

12,996

 

13,135

 

25,019

 

25,853

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

NONINTEREST EXPENSE

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Compensation

 

15,797

 

15,911

 

15,102

 

15,711

 

15,641

 

31,708

 

31,500

Occupancy, Net

 

4,503

 

4,551

 

4,400

 

4,501

 

4,555

 

9,054

 

8,936

Other Real Estate, Net

 

248

 

626

 

355

 

(118)

 

315

 

874

 

898

Other

 

7,845

 

6,818

 

7,040

 

6,613

 

7,410

 

14,663

 

14,509

Total Noninterest Expense

 

28,393

 

27,906

 

26,897

 

26,707

 

27,921

 

56,299

 

55,843

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

OPERATING PROFIT

 

6,104

 

5,589

 

6,663

 

7,060

 

5,121

 

11,693

 

9,343

Income Tax Expense (Benefit)

 

101

 

(184)

 

6,660

 

2,505

 

1,560

 

(83)

 

3,038

NET INCOME

$

6,003

$

5,773

$

3

$

4,555

$

3,561

$

11,776

$

6,305

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

PER SHARE DATA

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic Net Income

$

0.35

$

0.34

$

0.00

$

0.27

$

0.21

$

0.69

$

0.37

Diluted Net Income

 

0.35

 

0.34

 

0.00

 

0.27

 

0.21

 

0.69

 

0.37

Cash Dividend

$

0.07

$

0.07

$

0.07

$

0.07

$

0.05

$

0.14

$

0.10

AVERAGE SHARES

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic 

 

17,045

 

17,028

 

16,967

 

16,965

 

16,955

 

17,037

 

16,937

Diluted 

 

17,104

 

17,073

 

17,050

 

17,044

 

17,016

 

17,089

 

16,993

 


 

CAPITAL CITY BANK GROUP, INC.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

ALLOWANCE FOR LOAN LOSSES

 

 

 

 

 

 

 

 

 

 

 

 

 

 

AND RISK ELEMENT ASSETS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Unaudited

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Six Months Ended

 

 

2018

 

2017

 

June 30,

(Dollars in thousands, except per share data)

 

Second Quarter

 

First Quarter

 

Fourth Quarter

 

Third Quarter

 

Second Quarter

 

2018

 

2017

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

ALLOWANCE FOR LOAN LOSSES

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance at Beginning of Period

$

13,258

$

13,307

$

13,339

$

13,242

$

13,335

$

13,307

$

13,431

Provision for Loan Losses

 

815

 

745

 

826

 

490

 

589

 

1,560

 

899

Net Charge-Offs

 

510

 

794

 

858

 

393

 

682

 

1,304

 

1,088

Balance at End of Period

$

13,563

$

13,258

$

13,307

$

13,339

$

13,242

$

13,563

$

13,242

As a % of Loans

 

0.78%

 

0.80%

 

0.80%

 

0.82%

 

0.81%

 

0.78%

 

0.81%

As a % of Nonperforming Loans

 

236.25%

 

181.26%

 

185.87%

 

203.39%

 

166.23%

 

236.25%

 

166.23%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

CHARGE-OFFS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial, Financial and Agricultural

$

141

$

182

$

664

$

276

$

324

$

323

$

417

Real Estate - Construction

 

-

 

7

 

-

 

-

 

-

 

7

 

-

Real Estate - Commercial

 

-

 

290

 

42

 

94

 

478

 

290

 

549

Real Estate - Residential

 

456

 

107

 

126

 

125

 

44

 

563

 

160

Real Estate - Home Equity

 

157

 

158

 

48

 

50

 

-

 

315

 

92

Consumer

 

509

 

695

 

577

 

455

 

537

 

1,204

 

1,161

Total Charge-Offs

$

1,263

$

1,439

$

1,457

$

1,000

$

1,383

$

2,702

$

2,379

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

RECOVERIES

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial, Financial and Agricultural

$

87

$

166

$

113

$

79

$

40

$

253

$

121

Real Estate - Construction

 

-

 

1

 

-

 

50

 

-

 

1

 

-

Real Estate - Commercial

 

15

 

123

 

24

 

69

 

58

 

138

 

81

Real Estate - Residential

 

346

 

84

 

141

 

60

 

202

 

430

 

415

Real Estate - Home Equity

 

22

 

61

 

67

 

84

 

39

 

83

 

68

Consumer

 

283

 

210

 

254

 

265

 

362

 

493

 

606

Total Recoveries

$

753

$

645

$

599

$

607

$

701

$

1,398

$

1,291

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

NET CHARGE-OFFS

$

510

$

794

$

858

$

393

$

682

$

1,304

$

1,088

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

0.12%

 

0.20%

 

0.21%

 

0.10%

 

0.17%

 

0.16%

 

0.14%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

RISK ELEMENT ASSETS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Nonaccruing Loans

$

5,741

$

7,314

$

7,159

$

6,558

$

7,966

 

 

 

 

Other Real Estate Owned

 

3,373

 

3,330

 

3,941

 

5,987

 

7,968

 

 

 

 

Total Nonperforming Assets

$

9,114

$

10,644

$

11,100

$

12,545

$

15,934

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Past Due Loans 30-89 Days

$

3,472

$

4,268

$

4,543

$

5,687

$

3,789

 

 

 

 

Past Due Loans 90 Days or More

 

-

 

-

 

36

 

-

 

-

 

 

 

 

Classified Loans

 

29,583

 

31,709

 

31,002

 

36,545

 

41,322

 

 

 

 

Performing Troubled Debt Restructuring's

$

29,981

$

31,472

$

32,164

$

33,427

$

35,436

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Nonperforming Loans as a % of Loans

 

0.33%

 

0.44%

 

0.43%

 

0.40%

 

0.49%

 

 

 

 

Nonperforming Assets as a % of Loans and

 

 

 

 

 

 

 

 

 

 

 

 

 

 

   Other Real Estate

 

0.52%

 

0.64%

 

0.67%

 

0.76%

 

0.97%

 

 

 

 

Nonperforming Assets as a % of Total Assets

 

0.32%

 

0.36%

 

0.38%

 

0.45%

 

0.57%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1) Annualized

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


 

CAPITAL CITY BANK GROUP, INC.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

AVERAGE BALANCE AND INTEREST RATES(1)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Unaudited

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Second Quarter 2018

 

 

First Quarter 2018

 

 

Fourth Quarter 2017

 

 

Third Quarter 2017

 

 

Second Quarter 2017

 

 

Jun 2018 YTD

 

 

Jun 2017 YTD

 

(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

 

 

Average

Balance

 

Interest

 

Average

Rate

 

 

Average

Balance

 

Interest

 

Average

Rate

 

ASSETS:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loans, Net of Unearned Interest

$

1,691,287

 

20,625

 

4.89

%

$

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

%

$

1,669,571

 

40,261

 

4.86

%

$

1,597,159

 

37,017

 

4.67

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Investment Securities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Taxable Investment Securities

 

643,516

 

2,945

 

1.83

 

 

619,137

 

2,523

 

1.64

 

 

602,353

 

2,263

 

1.50

 

 

588,518

 

2,150

 

1.45

 

 

591,825

 

1,898

 

1.28

 

 

631,394

 

5,468

 

1.74

 

 

596,153

 

3,682

 

1.24

 

Tax-Exempt Investment Securities

 

72,478

 

266

 

1.47

 

 

84,800

 

318

 

1.50

 

 

94,329

 

393

 

1.67

 

 

98,463

 

407

 

1.65

 

 

100,742

 

414

 

1.64

 

 

78,605