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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):  April 22, 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) 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 22, 2019, Capital City Bank Group, Inc. (“CCBG”) issued an earnings press release reporting CCBG’s financial results for the three month period ended March 31, 2019.  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 22, 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:   April 22, 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 April 22, 2019

 

 

 


(Back To Top)

Section 2: EX-99.1 (EXHIBIT 99.1)

 

 

Capital City Bank Group, Inc.

Reports First Quarter 2019 Results

 

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

 

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

 

HIGHLIGHTS

·       Net interest income up 2.3% sequentially and 14.5% over prior year

·       Period-end loan growth of 1.2% sequentially and 8.1% over prior year

·       42 basis points cost of funds reflects the quality of our core deposit base (~ 38% noninterest bearing)

·       Continued efforts to restrain expense growth 

·       Nonperforming assets down 24% sequentially and 35% from prior year

 

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

 

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

 

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

 

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

 

Discussion of Operating Results

 

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

 

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

 

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

 

 


 

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

 

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

 

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

 

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

 

Discussion of Financial Condition

 

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

 

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

 

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

 

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

 

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

 

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

 

 


 

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

 

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

 

About Capital City Bank Group, Inc.

 

Capital City Bank Group, Inc. (NASDAQ: CCBG) is one of the largest publicly traded financial holding companies headquartered in Florida and has approximately $3.0 billion in assets.  We provide a full range of banking services, including traditional deposit and credit services, mortgage banking, asset management, trust, merchant services, bankcards and securities brokerage services.  Our bank subsidiary, Capital City Bank, was founded in 1895 and now has 59 banking offices and 73 ATMs in Florida, Georgia and Alabama.  For more information about Capital City Bank Group, Inc., visit www.ccbg.com.

 

FORWARD-LOOKING STATEMENTS

 

Forward-looking statements in this Press Release are based on current plans and expectations that are subject to uncertainties and risks, which could cause our future results to differ materially.  The following factors, among others, could cause our actual results to differ: the accuracy of the our financial statement estimates and assumptions; legislative or regulatory changes, including the Dodd-Frank Act, Basel III, and the ability to repay and qualified mortgage standards; fluctuations in inflation, interest rates, or monetary policies; the effects of security breaches and computer viruses that may affect our computer systems or fraud related to debit card products; changes in consumer spending and savings habits; our growth and profitability; the strength of the U.S. economy and the local economies where we conduct operations; the effects of a non-diversified loan portfolio, including the risks of geographic and industry concentrations; harsh weather conditions and man-made disasters; changes in the stock market and other capital and real estate markets; customer acceptance of third-party products and services; increased competition and its effect on pricing, including the long-term impact on our net interest margin from the repeal of Regulation Q; negative publicity and the impact on our reputation; technological changes, especially changes that allow out of market competitors to compete in our markets; changes in accounting; and our ability to manage the risks involved in the foregoing.  Additional factors can be found in our Annual Report on Form 10-K for the fiscal year ended December 31, 2018, and our other filings with the SEC, which are available at the SEC’s internet site (http://www.sec.gov).  Forward-looking statements in this Press Release speak only as of the date of the Press Release, and we assume no obligation to update forward-looking statements or the reasons why actual results could differ.

 

USE OF NON-GAAP FINANCIAL MEASURES

 

We present a tangible common equity ratio and a tangible book value per diluted share that removes the effect of goodwill resulting from merger and acquisition activity.  We believe these measures are useful to investors because it allows investors to more easily compare our capital adequacy to other companies in the industry. 

 

The GAAP to non-GAAP reconciliations are provided below.

 

(Dollars in Thousands, except per share data)

Mar 31, 2019

Dec 31, 2018

Sep 30, 2018

Jun 30, 2018

Mar 31, 2018

Shareowners' Equity (GAAP)

 

$

308,986

$

302,587

$

298,016

$

293,571

$

288,360

Less: Goodwill (GAAP)

 

 

84,811

 

84,811

 

84,811

 

84,811

 

84,811

Tangible Shareowners' Equity (non-GAAP)

A

 

224,175

 

217,776

 

213,205

 

208,760

 

203,549

Total Assets (GAAP)

 

 

3,052,051

 

2,959,183

 

2,819,190

 

2,880,278

 

2,924,832

Less: Goodwill (GAAP)

 

 

84,811

 

84,811

 

84,811

 

84,811

 

84,811

Tangible Assets (non-GAAP)

B

$

2,967,240

$

2,874,372

$

2,734,379

$

2,795,467

$

2,840,021

Tangible Common Equity Ratio (non-GAAP)

A/B

 

7.56%

 

7.58%

 

7.80%

 

7.47%

 

7.17%

Actual Diluted Shares Outstanding (GAAP)

C

 

16,840,496

 

16,808,542

 

17,127,846

 

17,114,380

 

17,088,419

Tangible Book Value per Diluted Share (non-GAAP)

A/C

$

13.31

$

12.96

$

12.45

$

12.20

$

11.91

 


 

CAPITAL CITY BANK GROUP, INC.

 

 

 

 

 

 

EARNINGS HIGHLIGHTS

 

 

 

 

 

 

Unaudited

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

(Dollars in thousands, except per share data)

 

Mar 31, 2019

 

Dec 31, 2018

 

Mar 31, 2018

EARNINGS

 

 

 

 

 

 

Net Income

$

6,436

$

8,458

$

5,773

Diluted Net Income Per Share

$

0.38

$

0.50

$

0.34

PERFORMANCE

 

 

 

 

 

 

Return on Average Assets

 

0.87%

 

1.18%

 

0.81%

Return on Average Equity

 

8.49%

 

11.10%

 

8.14%

Net Interest Margin

 

3.75%

 

3.81%

 

3.43%

Noninterest Income as % of Operating Revenue

 

33.51%

 

35.22%

 

36.44%

Efficiency Ratio

 

75.01%

 

70.21%

 

81.07%

CAPITAL ADEQUACY

 

 

 

 

 

 

Tier 1 Capital

 

16.34%

 

16.36%

 

16.31%

Total Capital

 

17.09%

 

17.13%

 

17.05%

Tangible Common Equity (1)

 

7.56%

 

7.58%

 

7.17%

Leverage

 

10.53%

 

10.89%

 

10.36%

Common Equity Tier 1

 

13.62%

 

13.58%

 

13.44%

Equity to Assets

 

10.12%

 

10.23%

 

9.86%

ASSET QUALITY

 

 

 

 

 

 

Allowance as % of Non-Performing Loans

 

279.77%

 

206.79%

 

181.26%

Allowance as a % of Loans

 

0.78%

 

0.80%

 

0.80%

Net Charge-Offs as % of Average Loans

 

0.20%

 

0.10%

 

0.20%

Nonperforming Assets as % of Loans and OREO

 

0.39%

 

0.51%

 

0.64%

Nonperforming Assets as % of Total Assets

 

0.23%

 

0.31%

 

0.36%

STOCK PERFORMANCE

 

 

 

 

 

 

High

$

25.87

$

26.95

$

26.50

Low

 

21.04

 

19.92

 

22.80

Close

$

21.78

$

23.21

$

24.75

Average Daily Trading Volume

 

18,407

 

21,455

 

21,061

 

 

 

 

 

 

 

(1)  Tangible common equity ratio is a non-GAAP financial measure.  For additional information, including a reconciliation to GAAP, refer to

      page 3.

 

 

 

 

 

 

 


 

CAPITAL CITY BANK GROUP, INC.

 

 

 

 

 

 

 

 

 

 

CONSOLIDATED STATEMENT OF FINANCIAL CONDITION

 

 

 

 

 

 

Unaudited

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2019

 

2018

(Dollars in thousands)

 

First Quarter

 

Fourth Quarter

 

Third Quarter

 

Second Quarter

 

First Quarter

ASSETS

 

 

 

 

 

 

 

 

 

 

Cash and Due From Banks

$

49,501

$

62,032

$

48,423

$

56,573

$

47,804

Funds Sold and Interest Bearing Deposits

 

304,213

 

213,968

 

26,839

 

107,066

 

250,821

Total Cash and Cash Equivalents

 

353,714

 

276,000

 

75,262

 

163,639

 

298,625

 

 

 

 

 

 

 

 

 

 

 

Investment Securities Available for Sale

 

429,016

 

446,157

 

484,243

 

493,662

 

471,836

Investment Securities Held to Maturity

 

226,179

 

217,320

 

227,923

 

236,764

 

225,552

   Total Investment Securities

 

655,195

 

663,477

 

712,166

 

730,426

 

697,388

 

 

 

 

 

 

 

 

 

 

 

Loans Held for Sale

 

4,557

 

6,869

 

8,297

 

8,246

 

4,845

 

 

 

 

 

 

 

 

 

 

 

Loans, Net of Unearned Interest

 

 

 

 

 

 

 

 

 

 

Commercial, Financial, & Agricultural

 

238,942

 

233,689

 

239,044

 

222,406

 

198,775

Real Estate - Construction

 

87,123

 

89,527

 

87,672

 

88,169

 

80,236

Real Estate - Commercial

 

615,129

 

602,061

 

596,391

 

575,993

 

551,309

Real Estate - Residential

 

338,574

 

334,197

 

333,896

 

320,296

 

307,050

Real Estate - Home Equity

 

209,194

 

210,111

 

212,942

 

218,851

 

223,994

Consumer

 

296,351

 

295,040

 

294,040

 

285,599

 

284,356

Other Loans

 

10,430

 

8,018

 

8,167

 

11,648

 

14,988

Overdrafts

 

1,362

 

1,582

 

1,602

 

1,513

 

1,187

Total Loans, Net of Unearned Interest

 

1,797,105

 

1,774,225

 

1,773,754

 

1,724,475

 

1,661,895

Allowance for Loan Losses

 

(14,120)

 

(14,210)

 

(14,219)

 

(13,563)

 

(13,258)

Loans, Net

 

1,782,985

 

1,760,015

 

1,759,535

 

1,710,912

 

1,648,637

 

 

 

 

 

 

 

 

 

 

 

Premises and Equipment, Net

 

86,846

 

87,190

 

89,567

 

90,000

 

90,939

Goodwill

 

84,811

 

84,811

 

84,811

 

84,811

 

84,811

Other Real Estate Owned

 

1,902

 

2,229

 

2,720

 

3,373

 

3,330

Other Assets

 

82,041

 

78,592

 

86,832

 

88,871

 

96,257

Total Other Assets

 

255,600

 

252,822

 

263,930

 

267,055

 

275,337

 

 

 

 

 

 

 

 

 

 

 

Total Assets

$

3,052,051

$

2,959,183

$

2,819,190

$

2,880,278

$

2,924,832

 

 

 

 

 

 

 

 

 

 

 

LIABILITIES

 

 

 

 

 

 

 

 

 

 

Deposits:

 

 

 

 

 

 

 

 

 

 

Noninterest Bearing Deposits

$

995,853

$

947,858

$

934,146

$

937,241

$

890,482

NOW Accounts

 

887,453

 

867,209

 

713,967

 

778,131

 

859,704

Money Market Accounts

 

244,628

 

237,739

 

254,099

 

257,965

 

257,422

Regular Savings Accounts

 

372,414

 

358,306

 

352,508

 

354,156

 

353,996

Certificates of Deposit

 

116,946

 

120,744

 

126,496

 

131,697

 

137,280

Total Deposits

 

2,617,294

 

2,531,856

 

2,381,216

 

2,459,190

 

2,498,884

 

 

 

 

 

 

 

 

 

 

 

Short-Term Borrowings

 

8,983

 

13,541

 

16,644

 

7,021

 

4,893

Subordinated Notes Payable

 

52,887

 

52,887

 

52,887

 

52,887

 

52,887

Other Long-Term Borrowings

 

7,661

 

8,568

 

12,456

 

12,897

 

13,333

Other Liabilities

 

56,240

 

49,744

 

57,971

 

54,712

 

66,475

 

 

 

 

 

 

 

 

 

 

 

Total Liabilities

 

2,743,065

 

2,656,596

 

2,521,174

 

2,586,707

 

2,636,472

 

 

 

 

 

 

 

 

 

 

 

SHAREOWNERS' EQUITY

 

 

 

 

 

 

 

 

 

 

Common Stock

 

168

 

167

 

171

 

171

 

171

Additional Paid-In Capital

 

31,929

 

31,058

 

38,325

 

37,932

 

37,343

Retained Earnings

 

304,763

 

300,177

 

293,254

 

288,800

 

283,990

Accumulated Other Comprehensive Loss, Net of Tax

 

(27,874)

 

(28,815)

 

(33,734)

 

(33,332)

 

(33,144)

 

 

 

 

 

 

 

 

 

 

 

Total Shareowners' Equity

 

308,986

 

302,587

 

298,016

 

293,571

 

288,360

 

 

 

 

 

 

 

 

 

 

 

Total Liabilities and Shareowners' Equity

$

3,052,051

$

2,959,183

$

2,819,190

$

2,880,278

$

2,924,832

 

 

 

 

 

 

 

 

 

 

 

OTHER BALANCE SHEET DATA

 

 

 

 

 

 

 

 

 

 

Earning Assets

$

2,761,070

$

2,658,539

$

2,521,056

$

2,570,213

$

2,614,949

Interest Bearing Liabilities

 

1,690,972

 

1,658,994

 

1,529,057

 

1,594,754

 

1,679,515

 

 

 

 

 

 

 

 

 

 

 

Book Value Per Diluted Share

$

18.35

$

18.00

$

17.40

$

17.15

$

16.87

Tangible Book Value Per Diluted Share(1)

 

13.31

 

12.96

 

12.45

 

12.20

 

11.91

 

 

 

 

 

 

 

 

 

 

 

Actual Basic Shares Outstanding

 

16,812

 

16,748

 

17,059

 

17,056

 

17,044

Actual Diluted Shares Outstanding

 

16,840

 

16,809

 

17,128

 

17,114

 

17,088

 

 

 

 

 

 

 

 

 

 

 

(1)  Tangible book value per diluted share is a non-GAAP financial measure.  For additional information, including a reconciliation to GAAP, refer to page 3.

 


 

CAPITAL CITY BANK GROUP, INC.

 

 

 

 

 

 

 

 

 

 

CONSOLIDATED STATEMENT OF OPERATIONS

 

 

 

 

 

 

 

Unaudited

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2019

 

2018

(Dollars in thousands, except per share data)

 

First Quarter

 

Fourth Quarter

 

Third Quarter

 

Second Quarter

 

First Quarter

 

 

 

 

 

 

 

 

 

 

 

INTEREST INCOME

 

 

 

 

 

 

 

 

 

 

Interest and Fees on Loans

$

22,616

$

22,431

$

21,618

$

20,533

$

19,535

Investment Securities

 

3,513

 

3,478

 

3,472

 

3,156

 

2,762

Funds Sold

 

1,593

 

461

 

302

 

730

 

917

Total Interest Income

 

27,722

 

26,370

 

25,392

 

24,419

 

23,214

 

 

 

 

 

 

 

 

 

 

 

INTEREST EXPENSE

 

 

 

 

 

 

 

 

 

 

Deposits

 

2,099

 

1,312

 

1,068

 

995

 

868

Short-Term Borrowings

 

35

 

53

 

41

 

8

 

8

Subordinated Notes Payable

 

608

 

572

 

568

 

552

 

475

Other Long-Term Borrowings

 

72

 

85

 

92

 

94

 

100

Total Interest Expense

 

2,814

 

2,022

 

1,769

 

1,649

 

1,451

Net Interest Income

 

24,908

 

24,348

 

23,623

 

22,770

 

21,763

Provision for Loan Losses

 

767

 

457

 

904

 

815

 

745

Net Interest Income after Provision for

  Loan Losses

 

24,141

 

23,891

 

22,719

 

21,955

 

21,018

 

 

 

 

 

 

 

 

 

 

 

NONINTEREST INCOME

 

 

 

 

 

 

 

 

 

 

Deposit Fees

 

4,775

 

5,172

 

5,207

 

4,842

 

4,872

Bank Card Fees

 

2,855

 

2,830

 

2,828

 

2,909

 

2,811

Wealth Management Fees

 

2,323

 

2,320

 

2,181

 

2,037

 

2,173

Mortgage Banking Fees

 

993

 

1,129

 

1,343

 

1,206

 

1,057

Other

 

1,606

 

1,787

 

1,749

 

1,548

 

1,564

Total Noninterest Income

 

12,552

 

13,238

 

13,308

 

12,542

 

12,477

 

 

 

 

 

 

 

 

 

 

 

NONINTEREST EXPENSE

 

 

 

 

 

 

 

 

 

 

Compensation

 

16,349

 

16,322

 

15,891

 

15,797

 

15,911

Occupancy, Net

 

4,509

 

4,804

 

4,645

 

4,503

 

4,551

Other Real Estate, Net

 

363

 

(1,663)

 

347

 

248

 

626

Other

 

6,977

 

7,042

 

7,816

 

7,845

 

6,818

Total Noninterest Expense

 

28,198

 

26,505

 

28,699

 

28,393

 

27,906

 

 

 

 

 

 

 

 

 

 

 

OPERATING PROFIT

 

8,495

 

10,624

 

7,328

 

6,104

 

5,589

Income Tax (Benefit) Expense

 

2,059

 

2,166

 

1,338

 

101

 

(184)

NET INCOME

$

6,436

$

8,458

$

5,990

$

6,003

$

5,773

 

 

 

 

 

 

 

 

 

 

 

PER SHARE DATA

 

 

 

 

 

 

 

 

 

 

Basic Net Income

$

0.38

$

0.50

$

0.35

$

0.35

$

0.34

Diluted Net Income

 

0.38

 

0.50

 

0.35

 

0.35

 

0.34

Cash Dividend

$

0.11

$

0.09

$

0.09

$

0.07

$

0.07

AVERAGE SHARES

 

 

 

 

 

 

 

 

 

 

Basic 

 

16,791

 

16,989

 

17,056

 

17,045

 

17,028

Diluted 

 

16,819

 

17,050

 

17,125

 

17,104

 

17,073

 


 

CAPITAL CITY BANK GROUP, INC.

 

 

 

 

 

 

 

 

 

 

ALLOWANCE FOR LOAN LOSSES

 

 

 

 

 

 

 

 

 

 

AND RISK ELEMENT ASSETS

 

 

 

 

 

 

 

 

 

 

Unaudited

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2019

 

2018

(Dollars in thousands, except per share data)

 

First Quarter

 

Fourth Quarter

 

Third Quarter

 

Second Quarter

 

First Quarter

 

 

 

 

 

 

 

 

 

 

 

ALLOWANCE FOR LOAN LOSSES

 

 

 

 

 

 

 

 

 

 

Balance at Beginning of Period

$

14,210

$

14,219

$

13,563

$

13,258

$

13,307

Provision for Loan Losses

 

767

 

457

 

904

 

815

 

745

Net Charge-Offs

 

857

 

466

 

248

 

510

 

794

Balance at End of Period

$

14,120

$

14,210

$

14,219

$

13,563

$

13,258

As a % of Loans

 

0.78%

 

0.80%

 

0.80%

 

0.78%

 

0.80%

As a % of Nonperforming Loans

 

279.77%

 

206.79%

 

207.06%

 

236.25%

 

181.26%

 

 

 

 

 

 

 

 

 

 

 

CHARGE-OFFS

 

 

 

 

 

 

 

 

 

 

Commercial, Financial and Agricultural

$

95

$

53

$

268

$

141

$

182

Real Estate - Construction

 

-

 

-

 

-

 

-

 

7

Real Estate - Commercial

 

155

 

-

 

25

 

-

 

290

Real Estate - Residential

 

264

 

111

 

106

 

456

 

107

Real Estate - Home Equity

 

52

 

106

 

112

 

157.00

 

158

Consumer

 

795

 

728

 

463

 

509

 

695

Total Charge-Offs

$

1,361

$

998

$

974

$

1,263

$

1,439

 

 

 

 

 

 

 

 

 

 

 

RECOVERIES

 

 

 

 

 

 

 

 

 

 

Commercial, Financial and Agricultural

$

74

$

128

$

78

$

87

$

166

Real Estate - Construction

 

-

 

25

 

-

 

-

 

1.00

Real Estate - Commercial

 

70

 

13

 

222

 

15

 

123

Real Estate - Residential

 

44

 

106

 

107

 

346

 

84

Real Estate - Home Equity

 

32

 

61

 

47

 

22

 

61

Consumer

 

284

 

199

 

272

 

283

 

210

Total Recoveries

$

504

$

532

$

726

$

753

$

645

 

 

 

 

 

 

 

 

 

 

 

NET CHARGE-OFFS

$

857

$

466

$

248

$

510

$

794

 

 

 

 

 

 

 

 

 

 

 

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

 

0.20%

 

0.10%

 

0.06%

 

0.12%

 

0.20%

 

 

 

 

 

 

 

 

 

 

 

RISK ELEMENT ASSETS

 

 

 

 

 

 

 

 

 

 

Nonaccruing Loans

$

5,047

$

6,872

$

6,867

$

5,741

$

7,314

Other Real Estate Owned

 

1,902

 

2,229

 

2,720

 

3,373

 

3,330

Total Nonperforming Assets

$

6,949

$

9,101

$

9,587

$

9,114

$

10,644

 

 

 

 

 

 

 

 

 

 

 

Past Due Loans 30-89 Days

$

4,682

$

4,757

$

3,684

$

3,472

$

4,268

Past Due Loans 90 Days or More

 

-

 

-

 

126

 

-

 

-

Classified Loans

 

22,219

 

22,888

 

27,039

 

29,583

 

31,709

Performing Troubled Debt Restructuring's

$

20,791

$

22,084

$

28,661

$

29,981

$

31,472

 

 

 

 

 

 

 

 

 

 

 

Nonperforming Loans as a % of Loans

 

0.28%

 

0.39%

 

0.39%

 

0.33%

 

0.44%

Nonperforming Assets as a % of Loans and Other Real Estate

 

0.39%

 

0.51%

 

0.54%

 

0.52%

 

0.64%

Nonperforming Assets as a % of  Total Assets

 

0.23%

 

0.31%

 

0.34%

 

0.32%

 

0.36%

 

 

 

 

 

 

 

 

 

 

 

(1) Annualized

 

 

 

 

 

 

 

 

 

 

 


 

CAPITAL CITY BANK GROUP, INC.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

AVERAGE BALANCE AND INTEREST RATES(1)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Unaudited

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

First Quarter 2019

 

 

Fourth Quarter 2018

 

 

Third Quarter 2018

 

 

Second Quarter 2018

 

 

First Quarter 2018

 

(Dollars in thousands)

 

Average

Balance

 

Interest

 

Average

Rate

 

 

Average

Balance

 

Interest

 

Average

Rate

 

 

Average

Balance

 

Interest

 

Average

Rate

 

 

Average

Balance

 

Interest

 

Average

Rate

 

 

Average

Balance

 

Interest

 

Average

Rate

 

ASSETS:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loans, Net of Unearned Interest

$

1,780,406

$

22,718

 

5.18

%

$

1,785,570

$

22,556

 

5.01

%

$

1,747,093

$

21,733

 

4.94

%

$

1,691,287

 

20,625

 

4.89

%

$

1,647,612

$

19,636

 

4.83

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Investment Securities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Taxable Investment Securities

 

618,127

 

3,387

 

2.20

 

 

637,735

 

3,325

 

2.08

 

 

663,639

 

3,290

 

1.98

 

 

643,516

 

2,945

 

1.83

 

 

619,137

 

2,523

 

1.64

 

Tax-Exempt Investment Securities

 

40,575

 

158

 

1.56

 

 

50,362

 

193

 

1.54

 

 

60,952

 

229

 

1.50

 

 

72,478

 

266

 

1.47

 

 

84,800

 

318

 

1.50

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Investment Securities

 

658,702

 

3,545

 

2.16

 

 

688,097

 

3,518

 

2.04

 

 

724,591

 

3,519

 

1.94

 

 

715,994

 

3,211

 

1.79

 

 

703,937

 

2,841

 

1.62

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Funds Sold

 

265,694

 

1,593

 

2.43

 

 

80,815

 

461

 

2.26

 

 

63,608

 

302

 

1.88

 

 

158,725

 

730

 

1.84

 

 

240,916

 

917

 

1.54

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Earning Assets

 

2,704,802

$

27,856

 

4.17

%

 

2,554,482

$

26,535

 

4.12

%

 

2,535,292

$

25,554

 

4.00

%

 

2,566,006

$

24,566

 

3.84

%

 

2,592,465

$

23,394

 

3.66

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and Due From Banks

 

53,848

 

 

 

 

 

 

52,344

 

 

 

 

 

 

49,493

 

 

 

 

 

 

50,364

 

 

 

 

 

 

52,711

 

 

 

 

 

Allowance for Loan Losses

 

(14,347)

 

 

 

 

 

 

(14,642)

 

 

 

 

 

 

(14,146)

 

 

 

 

 

 

(13,521)

 

 

 

 

 

 

(13,651)

 

 

 

 

 

Other Assets

 

252,208

 

 

 

 

 

 

257,061

 

 

 

 

 

 

256,285

 

 

 

 

 

 

258,255

 

 

 

 

 

 

260,595

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Assets

$

2,996,511

 

 

 

 

 

$

2,849,245

 

 

 

 

 

$

2,826,924

 

 

 

 

 

$

2,861,104

 

 

 

 

 

$

2,892,120

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

LIABILITIES:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest Bearing Deposits

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

NOW Accounts

$

884,277

$

1,755

 

0.80

%

$

739,225

$

995

 

0.53

%

$

733,255

$

773

 

0.42

%

$

790,335

$

725

 

0.37

%

$

863,175

$

659

 

0.31

%

Money Market Accounts

 

239,516

 

247

 

0.42

 

 

248,486

 

216

 

0.34

 

 

254,440

 

190

 

0.30

 

 

255,143

 

166

 

0.26

 

 

246,576

 

103

 

0.17

 

Savings Accounts

 

364,783

 

44

 

0.05

 

 

356,723

 

44

 

0.05

 

 

352,833

 

43

 

0.05

 

 

351,664

 

43

 

0.05

 

 

343,987

 

42

 

0.05

 

Time Deposits

 

118,839

 

53

 

0.18

 

 

123,193

 

57

 

0.18

 

 

129,927

 

62

 

0.19

 

 

134,171

 

61

 

0.18

 

 

140,359

 

64

 

0.18

 

Total Interest Bearing Deposits

 

1,607,415

 

2,099

 

0.53

%

 

1,467,627

 

1,312

 

0.37

%

 

1,470,455

 

1,068

 

0.30

%

 

1,531,313

 

995

 

0.27

%

 

1,594,097

 

868

 

0.23

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Short-Term Borrowings

 

11,378

 

35

 

1.26

%

 

15,424

 

53

 

1.36

%