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Section 1: 8-K (FORM 8-K)

 

 

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):  January 29, 2019

 

 

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 January 29, 2019, Capital City Bank Group, Inc. (“(CCBG”) issued an earnings press release reporting CCBG’s financial results for the fiscal year ended December 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 January 29, 2019.

  

 

 


 

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:   January 29, 2019

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 January 29, 2019

 

 

 


(Back To Top)

Section 2: EX-99.1 (EXHIBIT 99.1)

 

 

Capital City Bank Group, Inc.

Reports Fourth Quarter and Full Year 2018 Results

 

TALLAHASSEE, Fla. (January 29, 2019) – Capital City Bank Group, Inc. (NASDAQ: CCBG) today reported net income of $8.5 million, or $0.50 per diluted share for the fourth quarter of 2018 compared to net income of $6.0 million, or $0.35 per diluted share for the third quarter of 2018, and $3,000, or $0.00 per diluted share for the fourth quarter of 2017.  Earnings for the fourth quarter of 2017 included a $4.1 million, or $0.24 per diluted share, income tax expense related to the Tax Cuts and Jobs Act.   

 

For the full year 2018, net income totaled $26.2 million, or $1.54 per diluted share, compared to net income of $10.9 million, or $0.64 per diluted share for 2017.  Net income for 2018 included tax benefits totaling $3.3 million, or $0.19 per diluted share related to 2017 plan year pension plan contributions made during 2018.         

 

Fourth Quarter 2018 HIGHLIGHTS

·    Earnings per diluted share of $0.50, included other real estate gain of $0.09 per share 

·    Continued growth in net interest income, up $0.7 million, or 3.1 % sequentially

·    Continued reduction in classified assets, 16% sequentially    

·    Tangible capital ratio of 7.58%

·    Repurchased 324,000 shares of common stock

 

Full Year 2018 HIGHLIGHTS

·    Earnings per diluted share of $1.54, included tax benefits of $0.19 per share and higher other real estate gains of $0.05 per share

·    Continued improvement in operating leverage driven by margin expansion

-        Net interest income up $9.5 million, or 11.5%

-        Net interest margin up 27 basis points to 3.64% 

-        Average loan growth of $100 million, or 6.2%

·    Continued reduction in classified assets, 28%

 

“2018 produced marked improvement and continues to move us closer to our historical performance levels,” said William G. Smith, Jr., Chairman, President and CEO. “Record loan growth, a rising rate environment and tax reform were all major contributors to our earnings growth.  Asset sensitivity and a strong core deposit base produced a net interest margin of 3.64%, up 27 basis points year over year.  Lowering our efficiency ratio is a top priority and we have multiple strategies in place to grow revenues and reduce expenses.  Florida is growing and we are once again on offense following a number of years playing defense after the crisis.  We appreciate our shareowners’ confidence in our management team and will remain focused on implementing strategies that produce long-term value for our shareowners.”

 

Compared to the third quarter of 2018, the $3.3 million increase in operating profit reflected a $2.2 million decrease in noninterest expense, a $0.7 million increase in net interest income, and a $0.5 million reduction in the loan loss provision, partially offset by lower noninterest income of $0.1 million.  During the fourth quarter of 2018, we sold a banking office and realized a $2.0 million gain, which was reflected in noninterest expense (other real estate).

   

Compared to the fourth quarter of 2017, the $4.0 million increase in operating profit reflected a $2.9 million increase in net interest income, a $0.4 million decrease in noninterest expense, a $0.4 million reduction in the loan loss provision, and  higher noninterest income of $0.3 million.

 

For the full year 2018, the $6.6 million increase in operating profit compared to 2017 was attributable to a $9.5 million increase in net interest income, partially offset by a $2.0 million increase in noninterest expense, a $0.7 million increase in the loan loss provision, and lower noninterest income of $0.2 million.

 

Our return on average assets (“ROA”) was 1.18% and our return on average equity (“ROE”) was 11.10% for the fourth quarter of 2018.  These metrics were 0.84% and 7.98% for the third quarter of 2018, respectively, and 0.00% and 0.00% for the fourth quarter of 2017, respectively.  For the full year 2018, our ROA was 0.92% and our ROE was 8.89% compared to 0.39% and 3.83%, respectively, for 2017.

 

Discussion of Operating Results

 

Tax-equivalent net interest income for the fourth quarter of 2018 was $24.5 million compared to $23.8 million for the third quarter of 2018 and $21.8 million for the fourth quarter of 2017.  For the full year 2018, tax-equivalent net interest income totaled $93.2 million compared to $84.2 million for 2017.  The increase in tax-equivalent net interest income compared to all 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 loans, partially offset by a higher cost on our negotiated rate deposits. 

 

 


 

The federal funds target rate ended the year at a range of 2.25%-2.50%. This was the result of four rates increases in 2018, which positively affected our net interest income due to favorable repricing of our variable and adjustable rate earning assets. Although these increases resulted in higher rates paid on our negotiated rate deposit products, we continue to prudently manage our overall cost of funds, which was 31 basis points for the fourth quarter of 2018 compared to 28 basis points for the third quarter of 2018 and 27 basis points for the full year 2018. In conjunction with our overall balance sheet management, we continue to review our deposit board rates to determine whether rate increases are appropriate. We have developed several new deposit products designed to attract new clients or help maintain existing relationships for clients seeking higher returns on their deposit balances.  While rising rates and client expectations will generally result in a higher cost of funds, we will continue to prudently manage the mix and costs of our deposit base as we have done in the past.   

 

Our net interest margin for the fourth quarter of 2018 was 3.81%, an increase of nine basis points over the third quarter of 2018 and an increase of 36 basis points over the fourth quarter of 2017.  For the full year 2018, our net interest margin increased 27 basis points to 3.64%.  The increase in our margin compared to all prior periods noted above reflected rising interest rates and a favorable shift in our earning asset mix, which resulted in higher net interest income in each period. 

 

Our provision for loan losses for the fourth quarter of 2018 was $0.5 million compared to $0.9 million for the third quarter of 2018 and $0.8 million for the fourth quarter of 2017.  The reduction in our provision compared to the third quarter of 2018 was primarily attributable to a decrease in impaired loan reserves.  For the full year 2018, our loan loss provision was $2.9 million compared to $2.2 million for 2017 with the increase driven by growth in the loan portfolio.  At December 31, 2018, our allowance for loan losses of $14.2 million represented 0.80% of outstanding loans (net of overdrafts) and provided coverage of 207% of nonperforming loans compared to 0.80% and 207%, respectively, at September 30, 2018 and 0.80% and 186%, respectively, at December 31, 2017.

      

Noninterest income for the fourth quarter of 2018 totaled $13.2 million, a decrease of $0.1 million, or 0.5%, from the third quarter of 2018 and a $0.3 million, or 2.6%, increase over the fourth quarter of 2017.  Compared to the fourth quarter of 2017, the increase was attributable to higher deposit fees, wealth management fees, and other income.  For the full year 2018, noninterest income totaled $51.6 million, a $0.2 million, or 0.3%, decrease from 2017, and reflected lower mortgage banking fees of $1.0 million, partially offset by higher other income of $0.5 million and wealth management fees of $0.4 million.  The lower level of mortgage banking fees was due to a reduction in the volume of loans sold in secondary market as adjustable rate loan production has picked up momentum and is being retained in our loan portfolio instead of sold on the secondary market.  Total residential loan production (secondary market sales and portfolio) during 2018 was comparable to the prior year. The increase in other income reflected higher signing bonus income from processing contracts and miscellaneous income.  The increase in wealth management was attributable to higher trust fees and reflected growth in assets under management.   

 

Noninterest expense for the fourth quarter of 2018 totaled $26.5 million, a decrease of $2.2 million, or 7.6%, from the third quarter of 2018 and $0.4 million, or 1.5%, from the fourth quarter of 2017.  The decrease from the third quarter of 2018 was primarily attributable to lower other real estate owned (“OREO”) expense of $2.0 million and other expense of $0.7 million, partially offset by higher compensation expense of $0.4 million.  The lower OREO expense reflected a $2.0 million gain from the sale of a banking office in the fourth quarter of 2018.  The reduction in other expense was attributable to a decline in other losses, and lower professional fees and processing fees.  Higher cash incentive expense drove the increase in compensation expense.  For the full year 2018, noninterest expense totaled $111.5 million, an increase of $2.0 million, or 1.9%, over 2017 attributable to an increase in other expense of $1.4 million, compensation expense of $1.6 million, and occupancy expense of $0.7 million, partially offset by lower OREO expense of $1.6 million.  The increase in other expense was attributable to higher professional fees of $1.3 million.  The increase in professional fees reflected costs associated with several consulting projects, including both profit enhancements projects and the upgrading of ancillary systems, all of which were essentially complete at the end of the third quarter.  Higher salary expense, primarily cash incentives, drove the increase in compensation expense.  Slightly higher base salaries and contractual employment also contributed to the increase, but to a lesser extent.  Occupancy expense increased due to higher equipment/software maintenance agreement expense and to a lesser extent an increase in building maintenance costs (partly related to Hurricane Michael).  The aforementioned $2.0 million gain from the sale of a banking office drove the improvement in OREO expense.  The same factors drove the variances for the fourth quarter of 2018 versus fourth quarter of 2017.

 

For 2018, we realized income tax expense of $3.4 million, which reflected four discrete tax benefit items totaling $3.6 million resulting from the effect of federal tax reform enacted in December 2017.  Three items totaling $3.3 million related to pension plan contributions made in 2018 for the plan year 2017.  These pension related items were $1.5 million for the first quarter, $1.4 million for the second quarter and $0.4 million for the third quarter.  In addition, we realized a discrete tax item in the fourth quarter of 2018 for $0.3 million related to a cost segregation analysis for various properties we own that also benefited from the effects of federal tax reform.  Absent these discrete items, our effective tax rate would have been approximately 24%.  Income tax expense for the fourth quarter of 2017 included a $4.1 million discrete tax expense related to the Tax Cuts and Jobs Act.

 

 


 

Discussion of Financial Condition

 

Average earning assets were $2.554 billion for the fourth quarter of 2018, an increase of $19.2 million, or 0.8%, over the third quarter of 2018, and an increase of $42.5 million, or 1.7%, over the fourth quarter of 2017.  The increase in average earning assets compared to both prior periods reflects a higher level of deposits.

 

We maintained an average net overnight funds (deposits with banks plus fed funds sold less fed funds purchased) sold position of $80.8 million during the fourth quarter of 2018 compared to an average net overnight funds sold position of $63.6 million in the third quarter of 2018 and $174.6 million in the fourth quarter of 2017.  Compared to the third quarter of 2018, the increase in average net overnight funds primarily reflected an increase in noninterest bearing deposits and a decrease in our investment portfolio. The decrease compared to the fourth quarter 2017 was primarily attributable to growth in our loan portfolio. 

 

Average loans increased $38.5 million, or 2.2% compared to the third quarter of 2018, and have grown $144.8 million, or 8.8% compared to the fourth quarter of 2017.  The increase compared to the third quarter 2018 reflected growth in all loan types except home equity loans and construction loans. The increase compared to the fourth quarter 2017 reflected growth in all loan types except home equity loans. Over the course of 2018, we purchased both adjustable rate residential loans and fixed and adjustable rate commercial real estate loan pools totaling $26.1 million based on principal balances at the time of purchase.

 

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 and strategic loan purchases, have helped to increase overall loan growth.  In the current rising rate environment, our fixed rate offerings are reviewed frequently and rate increases are implemented as appropriate.

 

Nonperforming assets (nonaccrual loans and OREO) totaled $9.1 million at December 31, 2018, representing a decrease of $0.5 million, or 5.1%, from September 30, 2018, and a decrease of $2.0 million, or 18.0%, from December 31, 2017.  Nonaccrual loans totaled $6.9 million at December 31, 2018, comparable to September 30, 2018 and a $0.3 million decrease from December 31, 2017.  The balance of OREO totaled $2.2 million at December 31, 2018, a decrease of $0.5 million from September 30, 2018 and a decrease of $1.7 million from December 31, 2017.  For 2018, we added properties totaling $2.1 million, sold properties totaling $2.8 million and recorded valuation adjustments totaling $1.0 million.  Nonperforming assets represented 0.31% of total assets at December 31, 2018 compared to 0.34% at September 30, 2018 and 0.38% at December 31, 2017.

 

Average total deposits were $2.412 billion for the fourth quarter of 2018, an increase of $20.1 million, or 0.8%, over the third quarter of 2018, and an increase of $34.0 million, or 1.4%, over the fourth quarter of 2017.  The increase in deposits compared to the third quarter of 2018 reflected higher noninterest bearing deposit and savings accounts, partially offset by lower money market accounts and certificates of deposit balances. The increase in deposits compared to the fourth quarter of 2017 reflected growth in noninterest bearing accounts, public fund deposits, and savings accounts, partially offset by declines in certificates of deposit. Average public fund balances typically peak in the first quarter and trend downward through the middle of the fourth quarter due to the cycle of tax receipts.

 

Deposit levels continue to be closely monitored and managed in conjunction with runoff from the investment portfolio.  We monitor deposit rates on an ongoing basis as prudent pricing discipline remains the key to managing our mix of deposits.

 

Shareowners’ equity was $302.6 million at December 31, 2018, compared to $298.0 million at September 30, 2018 and $284.2 million at December 31, 2017.  At December 31, 2018, our common stock had a book value of $18.00 per diluted share compared to $17.40 at September 30, 2018 and $16.65 at December 31, 2017.  During the fourth quarter of 2018, we repurchased 324,441 shares of our stock at $24.75 per share.  Book value is impacted through other comprehensive income by the net unrealized gains and losses in our available for sale investment portfolio.  At December 31, 2018, the net after tax unrealized loss was $2.0 million compared to $3.4 million at September 30, 2018 and $1.7 million at December 31, 2017.  Book value is also impacted by the recording of our unfunded pension liability through other comprehensive income during the fourth quarter.  At December 31, 2018, the net after tax pension liability reflected in accumulated other comprehensive loss was $26.8 million compared to $30.3 million at December 31, 2017. 

 

At December 31, 2018, our leverage ratio was 10.89% compared to 10.99% and 10.47% at September 30, 2018 and December 31, 2017, respectively.  Further, our risk-adjusted capital ratio was 17.13%, 16.94%, and 17.10% on these respective dates.  Our common equity tier 1 ratio was 13.58% at December 31, 2018, compared to 13.43% at September 30, 2018 and 13.42% at December 31, 2017.  At December 31, 2018, 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 $3.0 billion in assets.  We provide a full range of banking services, including traditional deposit and credit services, mortgage banking, asset management, trust, merchant services, bankcards, and securities brokerage services.  Our bank subsidiary, Capital City Bank, was founded in 1895 and now has 59 banking offices and 82 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)

 

Dec 31, 2018

Sep 30, 2018

Jun 30, 2018

Mar 31, 2018

Dec 31, 2017

Shareowners' Equity (GAAP)

 

$

302,587

$

298,016

$

293,571

$

288,360

$

284,210

Less: Goodwill (GAAP)

 

 

84,811

 

84,811

 

84,811

 

84,811

 

84,811

Tangible Shareowners' Equity (non-GAAP)

A

 

217,776

 

213,205

 

208,760

 

203,549

 

199,399

Total Assets (GAAP)

 

 

2,959,183

 

2,819,190

 

2,880,278

 

2,924,832

 

2,898,794

Less: Goodwill (GAAP)

 

 

84,811

 

84,811

 

84,811

 

84,811

 

84,811

Tangible Assets (non-GAAP)

B

$

2,874,372

$

2,734,379

$

2,795,467

$

2,840,021

$

2,813,983

Tangible Common Equity Ratio (non-GAAP)

A/B

 

7.58%

 

7.80%

 

7.47%

 

7.17%

 

7.09%

Actual Diluted Shares Outstanding (GAAP)

C

 

16,808,542

 

17,127,846

 

17,114,380

 

17,088,419

 

17,071,107

Tangible Book Value per Diluted Share (non-GAAP)

A/C

$

12.96

$

12.45

$

12.20

$

11.91

$

11.68

 


 

CAPITAL CITY BANK GROUP, INC.

 

 

 

 

 

 

 

 

 

 

EARNINGS HIGHLIGHTS

 

 

 

 

 

 

 

 

 

 

Unaudited

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

Twelve Months Ended

(Dollars in thousands, except per share data)

 

Dec 31, 2018

 

Sep 30, 2018

 

Dec 31, 2017

 

Dec 31, 2018

 

Dec 31, 2017

 

 

 

 

 

 

 

 

 

 

 

EARNINGS

 

 

 

 

 

 

 

 

 

 

Net Income

$

8,458

$

5,990

$

3

$

26,224

$

10,863

Net Income Per Common Share

$

0.50

$

0.35

$

0.00

$

1.54

$

0.64

PERFORMANCE

 

 

 

 

 

 

 

 

 

 

Return on Average Assets

 

1.18%

 

0.84%

 

0.00%

 

0.92%

 

0.39%

Return on Average Equity

 

11.10%

 

7.98%

 

0.00%

 

8.89%

 

3.83%

Net Interest Margin

 

3.81%

 

3.72%

 

3.45%

 

3.64%

 

3.37%

Noninterest Income as % of Operating Revenue

 

35.22%

 

36.04%

 

37.51%

 

35.79%

 

38.41%

Efficiency Ratio

 

70.21%

 

77.37%

 

77.50%

 

77.05%

 

80.50%

CAPITAL ADEQUACY

 

 

 

 

 

 

 

 

 

 

Tier 1 Capital Ratio

 

16.36%

 

16.17%

 

16.33%

 

16.36%

 

16.33%

Total Capital Ratio

 

17.13%

 

16.94%

 

17.10%

 

17.13%

 

17.10%

Tangible Common Equity Ratio

 

7.58%

 

7.80%

 

7.09%

 

7.58%

 

7.09%

Leverage Ratio

 

10.89%

 

10.99%

 

10.47%

 

10.89%

 

10.47%

Common Equity Tier 1 Ratio

 

13.58%

 

13.43%

 

13.42%

 

13.58%

 

13.42%

Equity to Assets

 

10.23%

 

10.57%

 

9.80%

 

10.23%

 

9.80%

ASSET QUALITY

 

 

 

 

 

 

 

 

 

 

Allowance as % of Non-Performing Loans

 

206.79%

 

207.06%

 

185.87%

 

206.79%

 

185.87%

Allowance as a % of Loans

 

0.80%

 

0.80%

 

0.80%

 

0.80%

 

0.80%

Net Charge-Offs as % of Average Loans

 

0.10%

 

0.06%

 

0.21%

 

0.12%

 

0.14%

Nonperforming Assets as % of Loans and ORE

 

0.51%

 

0.54%

 

0.67%

 

0.51%

 

0.67%

Nonperforming Assets as % of Total Assets

 

0.31%

 

0.34%

 

0.38%

 

0.31%

 

0.38%

STOCK PERFORMANCE

 

 

 

 

 

 

 

 

 

 

High

$

26.95

$

25.91

$

26.01

$

26.95

$

26.01

Low

 

19.92

 

23.19

 

22.21

 

19.92

 

17.68

Close

$

23.21

$

23.34

$

22.94

$

23.21

$

22.94

Average Daily Trading Volume

 

21,455

 

16,500

 

19,112

 

21,082

 

23,793

 


 

CAPITAL CITY BANK GROUP, INC.

 

 

 

 

 

 

 

 

 

 

CONSOLIDATED STATEMENT OF FINANCIAL CONDITION

 

 

 

 

 

 

Unaudited

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2018

 

2017

(Dollars in thousands, except per share data)

 

Fourth Quarter

 

Third Quarter

 

Second Quarter

 

First Quarter

 

Fourth Quarter

ASSETS

 

 

 

 

 

 

 

 

 

 

Cash and Due From Banks

$

62,032

$

48,423

$

56,573

$

47,804

$

58,419

Funds Sold and Interest Bearing Deposits

 

213,968

 

26,839

 

107,066

 

250,821

 

227,023

Total Cash and Cash Equivalents

 

276,000

 

75,262

 

163,639

 

298,625

 

285,442

 

 

 

 

 

 

 

 

 

 

 

Investment Securities Available for Sale

 

446,157

 

484,243

 

493,662

 

471,836

 

480,911

Investment Securities Held to Maturity

 

217,320

 

227,923

 

236,764

 

225,552

 

216,679

   Total Investment Securities

 

663,477

 

712,166

 

730,426

 

697,388

 

697,590

 

 

 

 

 

 

 

 

 

 

 

Loans Held for Sale

 

6,869

 

8,297

 

8,246

 

4,845

 

4,817

 

 

 

 

 

 

 

 

 

 

 

Loans, Net of Unearned Interest

 

 

 

 

 

 

 

 

 

 

Commercial, Financial, & Agricultural

 

233,689

 

239,044

 

222,406

 

198,775

 

218,166

Real Estate - Construction

 

89,527

 

87,672

 

88,169

 

80,236

 

77,966

Real Estate - Commercial

 

602,061

 

596,391

 

575,993

 

551,309

 

535,707

Real Estate - Residential

 

334,197

 

333,896

 

320,296

 

307,050

 

308,159

Real Estate - Home Equity

 

210,111

 

212,942

 

218,851

 

223,994

 

229,513

Consumer

 

295,040

 

294,040

 

285,599

 

284,356

 

278,622

Other Loans

 

8,018

 

8,167

 

11,648

 

14,988

 

3,747

Overdrafts

 

1,582

 

1,602

 

1,513

 

1,187

 

1,612

Total Loans, Net of Unearned Interest

 

1,774,225

 

1,773,754

 

1,724,475

 

1,661,895

 

1,653,492

Allowance for Loan Losses

 

(14,210)

 

(14,219)

 

(13,563)

 

(13,258)

 

(13,307)

Loans, Net

 

1,760,015

 

1,759,535

 

1,710,912

 

1,648,637

 

1,640,185

 

 

 

 

 

 

 

 

 

 

 

Premises and Equipment, Net

 

87,190

 

89,567

 

90,000

 

90,939

 

91,698

Goodwill

 

84,811

 

84,811

 

84,811

 

84,811

 

84,811

Other Real Estate Owned

 

2,229

 

2,720

 

3,373

 

3,330

 

3,941

Other Assets

 

78,592

 

86,832

 

88,871

 

96,257

 

90,310

Total Other Assets

 

252,822

 

263,930

 

267,055

 

275,337

 

270,760

 

 

 

 

 

 

 

 

 

 

 

Total Assets

$

2,959,183

$

2,819,190

$

2,880,278

$

2,924,832

$

2,898,794

 

 

 

 

 

 

 

 

 

 

 

LIABILITIES

 

 

 

 

 

 

 

 

 

 

Deposits:

 

 

 

 

 

 

 

 

 

 

Noninterest Bearing Deposits

$

947,858

$

934,146

$

937,241

$

890,482

$

874,583

NOW Accounts

 

867,209

 

713,967

 

778,131

 

859,704

 

877,820

Money Market Accounts

 

237,739

 

254,099

 

257,965

 

257,422

 

239,212

Regular Savings Accounts

 

358,306

 

352,508

 

354,156

 

353,996

 

335,140

Certificates of Deposit

 

120,744

 

126,496

 

131,697

 

137,280

 

143,122

Total Deposits

 

2,531,856

 

2,381,216

 

2,459,190

 

2,498,884

 

2,469,877

 

 

 

 

 

 

 

 

 

 

 

Short-Term Borrowings

 

13,541

 

16,644

 

7,021

 

4,893

 

7,480

Subordinated Notes Payable

 

52,887

 

52,887

 

52,887

 

52,887

 

52,887

Other Long-Term Borrowings

 

8,568

 

12,456

 

12,897

 

13,333

 

13,967

Other Liabilities

 

49,744

 

57,971

 

54,712

 

66,475

 

70,373

 

 

 

 

 

 

 

 

 

 

 

Total Liabilities

 

2,656,596

 

2,521,174

 

2,586,707

 

2,636,472

 

2,614,584

 

 

 

 

 

 

 

 

 

 

 

SHAREOWNERS' EQUITY

 

 

 

 

 

 

 

 

 

 

Common Stock

 

167

 

171

 

171

 

171

 

170

Additional Paid-In Capital

 

31,058

 

38,325

 

37,932

 

37,343

 

36,674

Retained Earnings

 

300,177

 

293,254

 

288,800

 

283,990

 

279,410

Accumulated Other Comprehensive Loss, Net of Tax

 

(28,815)

 

(33,734)

 

(33,332)

 

(33,144)

 

(32,044)

 

 

 

 

 

 

 

 

 

 

 

Total Shareowners' Equity

 

302,587

 

298,016

 

293,571

 

288,360

 

284,210

 

 

 

 

 

 

 

 

 

 

 

Total Liabilities and Shareowners' Equity

$

2,959,183

$

2,819,190

$

2,880,278

$

2,924,832

$

2,898,794

 

 

 

 

 

 

 

 

 

 

 

OTHER BALANCE SHEET DATA

 

 

 

 

 

 

 

 

 

 

Earning Assets

$

2,658,539

$

2,521,056

$

2,570,213

$

2,614,949

$

2,582,922

Interest Bearing Liabilities

 

1,658,994

 

1,529,057

 

1,594,754

 

1,679,515

 

1,669,628

 

 

 

 

 

 

 

 

 

 

 

Book Value Per Diluted Share

$

18.00

$

17.40

$

17.15

$

16.87

$

16.65

Tangible Book Value Per Diluted Share

 

12.96

 

12.45

 

12.20

 

11.91

 

11.68

 

 

 

 

 

 

 

 

 

 

 

Actual Basic Shares Outstanding

 

16,748

 

17,059

 

17,056

 

17,044

 

16,989

Actual Diluted Shares Outstanding

 

16,809

 

17,128

 

17,114

 

17,088

 

17,071

 


 

CAPITAL CITY BANK GROUP, INC.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

CONSOLIDATED STATEMENT OF OPERATIONS

 

 

 

 

 

 

 

 

 

 

 

Unaudited

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Twelve Months Ended

 

 

2018

 

2017

 

December 31,

(Dollars in thousands, except per share data)

 

Fourth Quarter

 

Third Quarter

 

Second Quarter

 

First Quarter

 

Fourth Quarter

 

2018

 

2017

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

INTEREST INCOME

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest and Fees on Loans

$

22,431

$

21,618

$

20,533

$

19,535

$

19,513

$

84,117

$

75,717

Investment Securities

 

3,478

 

3,472

 

3,156

 

2,762

 

2,520

 

12,868

 

9,147

Funds Sold

 

461

 

302

 

730

 

917

 

594

 

2,410

 

2,066

Total Interest Income

 

26,370

 

25,392

 

24,419

 

23,214

 

22,627

 

99,395

 

86,930

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

INTEREST EXPENSE

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Deposits

 

1,312

 

1,068

 

995

 

868

 

590

 

4,243

 

1,789

Short-Term Borrowings

 

53

 

41

 

8

 

8

 

5

 

110

 

82

Subordinated Notes Payable

 

572

 

568

 

552

 

475

 

431

 

2,167

 

1,634

Other Long-Term Borrowings

 

85

 

92

 

94

 

100

 

112

 

371

 

443

Total Interest Expense

 

2,022

 

1,769

 

1,649

 

1,451

 

1,138

 

6,891

 

3,948

Net Interest Income

 

24,348

 

23,623

 

22,770

 

21,763

 

21,489

 

92,504

 

82,982

Provision for Loan Losses

 

457

 

904

 

815

 

745

 

826

 

2,921

 

2,215

Net Interest Income after Provision for

  Loan Losses

 

23,891

 

22,719

 

21,955

 

21,018

 

20,663

 

89,583

 

80,767

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

NONINTEREST INCOME

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Deposit Fees

 

5,172

 

5,207

 

4,842

 

4,872

 

5,040

 

20,093

 

20,335

Bank Card Fees

 

2,830

 

2,828

 

2,909

 

2,811

 

2,830

 

11,378

 

11,191

Wealth Management Fees

 

2,320

 

2,181

 

2,037

 

2,173

 

2,172

 

8,711

 

8,284

Mortgage Banking Fees

 

1,129

 

1,343

 

1,206

 

1,057

 

1,410

 

4,735

 

5,754

Other

 

1,787

 

1,749

 

1,548

 

1,564

 

1,445

 

6,648

 

6,182

Total Noninterest Income

 

13,238

 

13,308

 

12,542

 

12,477

 

12,897

 

51,565

 

51,746

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

NONINTEREST EXPENSE

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Compensation

 

16,322

 

15,891

 

15,797

 

15,911

 

15,102

 

63,921

 

62,312

Occupancy, Net

 

4,804

 

4,645

 

4,503

 

4,551

 

4,400

 

18,503

 

17,837

Other Real Estate, Net

 

(1,663)

 

347

 

248

 

626

 

355

 

(442)

 

1,135

Other

 

7,042

 

7,816

 

7,845

 

6,818

 

7,040

 

29,521

 

28,163

Total Noninterest Expense

 

26,505

 

28,699

 

28,393

 

27,906

 

26,897

 

111,503

 

109,447

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

OPERATING PROFIT

 

10,624

 

7,328

 

6,104

 

5,589

 

6,663

 

29,645

 

23,066

Income Tax Expense (Benefit)

 

2,166

 

1,338

 

101

 

(184)

 

6,660

 

3,421

 

12,203

NET INCOME

$

8,458

$

5,990

$

6,003

$

5,773

$

3

$

26,224

$

10,863

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

PER SHARE DATA

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic Net Income

$

0.50

$

0.35

$

0.35

$

0.34

$

0.00

$

1.54

$

0.64

Diluted Net Income

 

0.50

 

0.35

 

0.35

 

0.34

 

0.00

 

1.54

 

0.64

Cash Dividend

$

0.09

$

0.09

$

0.07

$

0.07

$

0.07

$

0.32

$

0.24

AVERAGE SHARES

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic 

 

16,989

 

17,056

 

17,045

 

17,028

 

16,967

 

17,029

 

16,952

Diluted 

 

17,050

 

17,125

 

17,104

 

17,073

 

17,050

 

17,072

 

17,013

 


 

CAPITAL CITY BANK GROUP, INC.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

ALLOWANCE FOR LOAN LOSSES

 

 

 

 

 

 

 

 

 

 

 

 

 

 

AND RISK ELEMENT ASSETS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Unaudited

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Twelve Months Ended

 

 

2018

 

2017

 

December 31,

(Dollars in thousands, except per share data)

 

Fourth Quarter

 

Third Quarter

 

Second Quarter

 

First Quarter

 

Fourth Quarter

 

2018

 

2017

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

ALLOWANCE FOR LOAN LOSSES

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance at Beginning of Period

$

14,219

$

13,563

$

13,258

$

13,307

$

13,339

$

13,307

$

13,431

Provision for Loan Losses

 

457

 

904

 

815

 

745

 

826

 

2,921

 

2,215

Net Charge-Offs

 

466

 

248

 

510

 

794

 

858

 

2,018

 

2,339

Balance at End of Period

$

14,210

$

14,219

$

13,563

$

13,258

$

13,307

$

14,210

$

13,307

As a % of Loans

 

0.80%

 

0.80%

 

0.78%

 

0.80%

 

0.80%

 

0.80%

 

0.80%

As a % of Nonperforming Loans

 

206.79%

 

207.06%

 

236.25%

 

181.26%

 

185.87%

 

206.79%

 

185.87%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

CHARGE-OFFS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial, Financial and Agricultural

$

53

$

268

$

141

$

182

$

664

$

644

$

1,357

Real Estate - Construction

 

-

 

-

 

-

 

7

 

-

 

7

 

-

Real Estate - Commercial

 

-

 

25

 

-

 

290

 

42

 

315

 

685

Real Estate - Residential

 

111

 

106

 

456

 

107

 

126

 

780

 

411

Real Estate - Home Equity

 

106

 

112

 

157

 

158

 

48.00

 

533

 

190

Consumer

 

728

 

463

 

509

 

695

 

577

 

2,395

 

2,193

Total Charge-Offs

$

998

$

974

$

1,263

$

1,439

$

1,457

$

4,674

$

4,836

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

RECOVERIES

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial, Financial and Agricultural

$

128

$

78

$

87

$

166

$

113

$

459

$

313

Real Estate - Construction

 

25

 

-

 

-

 

1

 

-

 

26

 

50

Real Estate - Commercial

 

13

 

222

 

15

 

123

 

24

 

373

 

174

Real Estate - Residential

 

106

 

107

 

346

 

84

 

141

 

643

 

616

Real Estate - Home Equity

 

61

 

47

 

22

 

61

 

67

 

191

 

219

Consumer

 

199

 

272

 

283

 

210

 

254

 

964

 

1,125

Total Recoveries

$

532

$

726

$

753

$

645

$

599

$

2,656

$

2,497

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

NET CHARGE-OFFS

$

466

$

248

$

510

$

794

$

858

$

2,018

$

2,339

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

0.10%

 

0.06%

 

0.12%

 

0.20%

 

0.21%

 

0.12%

 

0.14%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

RISK ELEMENT ASSETS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Nonaccruing Loans

$

6,872

$

6,867

$

5,741

$

7,314

$

7,159

 

 

 

 

Other Real Estate Owned

 

2,229

 

2,720

 

3,373

 

3,330

 

3,941

 

 

 

 

Total Nonperforming Assets

$

9,101

$

9,587

$

9,114

$

10,644

$

11,100

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Past Due Loans 30-89 Days

$

4,757

$

3,684

$

3,472

$

4,268

$

4,543

 

 

 

 

Past Due Loans 90 Days or More (accruing)

 

-

 

126

 

-

 

-

 

36

 

 

 

 

Classified Loans

 

22,888

 

27,039

 

29,583

 

31,709

 

31,002

 

 

 

 

Performing Troubled Debt Restructuring's

$

22,084

$

28,661

$

29,981

$

31,472

$

32,164

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Nonperforming Loans as a % of Loans

 

0.39%

 

0.39%

 

0.33%

 

0.44%

 

0.43%

 

 

 

 

Nonperforming Assets as a % of Loans and

 

 

 

 

 

 

 

 

 

 

 

 

 

 

   Other Real Estate

 

0.51%

 

0.54%

 

0.52%

 

0.64%

 

0.67%

 

 

 

 

Nonperforming Assets as a % of Total Assets

 

0.31%

 

0.34%

 

0.32%

 

0.36%

 

0.38%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1) Annualized

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


 

CAPITAL CITY BANK GROUP, INC.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

AVERAGE BALANCE AND INTEREST RATES(1)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Unaudited

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fourth Quarter 2018

 

 

Third Quarter 2018

 

 

Second Quarter 2018

 

 

First Quarter 2018

 

 

Fourth Quarter 2017

 

 

Dec 2018 YTD

 

 

Dec 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

$

1,785,570

 

22,556

 

5.01

%

$

1,747,093

 

21,733

 

4.94

%

$

1,691,287

 

20,625

 

4.89

%

$

1,647,612

 

19,636

 

4.83

%

$

1,640,738

 

19,696

 

4.76

%

$

1,718,348

 

84,550

 

4.92

%

$

1,618,583

 

76,385

 

4.72

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Investment Securities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Taxable Investment Securities

 

637,735

 

3,325

 

2.08

 

 

663,639

 

3,290

 

1.98

 

 

643,516

 

2,945

 

1.83

 

 

619,137

 

2,523

 

1.64

 

 

602,353

 

2,263

 

1.50

 

 

641,120

 

12,083

 

1.88

 

 

595,790

 

8,095

 

1.36

 

Tax-Exempt Investment Securities

 

50,362

 

193

 

1.54

 

 

60,952

 

229

 

1.50

 

 

72,478

 

266

 

1.47

 

 

84,800

 

318

 

1.50

 

 

94,329

 

393

 

1.67

 

 

67,037

 

1,006

 

1.50

 

 

97,867

 

1,610

 

1.65

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Investment Securities

 

688,097

 

3,518

 

2.04

 

 

724,591

 

3,519

 

1.94

 

 

715,994

 

3,211

 

1.79

 

 

703,937

 

2,841

 

1.62

 

 

696,682

 

2,656

 

1.52

 

 

708,157

 

13,089

 

1.85

 

 

693,657

 

9,705

 

1.40

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Funds Sold

 

80,815

 

461

 

2.26

 

 

63,608

 

302

 

1.88

 

 

158,725

 

730

 

1.84

 

 

240,916

 

917

 

1.54

 

 

174,565

 

594

 

1.35

 

 

135,379

 

2,410

 

1.78

 

 

189,991

 

2,066

 

1.09

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Earning Assets

 

2,554,482