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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):  July 23, 2019

 

 

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 23, 2019, 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, 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 July 23, 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:   July 23, 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 July 23, 2019

 

 

 


(Back To Top)

Section 2: EX-99.1 (EXHIBIT 99.1)

 

 

Capital City Bank Group, Inc.

Reports Second Quarter 2019 Results

 

TALLAHASSEE, Fla. (July 23, 2019) – Capital City Bank Group, Inc. (NASDAQ: CCBG) today reported net income of $7.3 million, or $0.44 per diluted share, for the second quarter of 2019 compared to net income of $6.4 million, or $0.38 per diluted share, for the first quarter of 2019, and $6.0 million, or $0.35 per diluted share, for the second quarter of 2018.  For the first six months of 2019, net income totaled $13.8 million, or $0.82 per diluted share, compared to net income of $11.8 million, or $0.69 per diluted share, for the same period of 2018.

 

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 made in 2018.        

 

HIGHLIGHTS

·       Net interest income up 4.3% sequentially and 14.3% over prior year

·       Net interest margin of 3.85%, up 10 basis points over prior quarter

·       Average loan growth of $43 million, or 2.4% over prior quarter

·       Strong year over year growth in average deposit balances of $121 million, or 5.0%

·       Year-to-date net charge-offs at 12 basis points continues to reflect the quality of our loan portfolio

·       Repurchased 77,000 shares of our stock in the second quarter of 2019

·       Tangible equity ratio up 27 basis points sequentially to 7.83%

 

“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. “Higher earning asset yields, 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 2019, the $1.2 million increase in operating profit reflected a $1.1 million increase in net interest income, higher noninterest income of $0.2 million, and a $0.1 million decrease in the loan loss provision, partially offset by higher noninterest expense of $0.2 million.

 

Compared to the second quarter of 2018, the $3.6 million increase in operating profit was attributable to higher net interest income of $3.2 million, higher noninterest income of $0.2 million, and a $0.2 million decrease in the loan loss provision.

 

The increase in operating profit for the first six months of 2019 versus the comparable period of 2018 was attributable to higher net interest income of $6.4 million, higher noninterest income of $0.3 million, and a $0.1 million decrease in the loan loss provision, partially offset by higher noninterest expense of $0.3 million.

 

Our return on average assets (“ROA”) was 0.98% and our return on average equity (“ROE”) was 9.37% for the second quarter of 2019.  These metrics were 0.87% and 8.49% for the first quarter of 2019, respectively, and 0.84% and 8.25% for the second quarter of 2018, respectively.  For the first six months of 2019, our ROA was 0.92% and our ROE was 8.94% compared to 0.83% and 8.20%, respectively, for the same period of 2018.

 

Discussion of Operating Results

 

Tax-equivalent net interest income for the second quarter of 2019 was $26.1 million compared to $25.0 million for the first quarter of 2019 and $22.9 million for the second quarter of 2018.  For the first six months of 2019, tax-equivalent net interest income totaled $51.2 million compared to $44.9 million for the comparable period of 2018.  The increase in tax-equivalent net interest income compared to the prior quarter reflected loan growth, higher interest rates, and one additional calendar day. The year-over-year comparisons for both the second quarter and year-to-date periods were primarily driven by significant growth in our earning assets, as higher balances of noninterest bearing deposits funded loan growth.

 

The federal funds target rate has increased nine times since December 2015 to 2.50% by the end of December 2018. The above comparisons reflected favorable repricing of our variable and adjustable rate earning assets as a result of these rate increases.  Our overall cost of funds was 40 basis points for the second quarter of 2019, a two basis point reduction compared to the prior quarter.  The reduction in cost of funds reflected the favorable shift in our deposit mix.  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 2019 was 3.85%, an increase of 10 basis points compared to the first quarter of 2019 and an increase of 27 basis points over the second quarter of 2018.  For the first six months of 2019, the net interest margin increased 29 basis points to 3.80% compared to the same period of 2018. The increase in the margin as compared to all respective prior periods reflected rising interest rates and a favorable shift in our earning asset mix, which produced higher net interest income in each period. 

 

The provision for loan losses for the second quarter of 2019 was $0.6 million compared to $0.8 million for the first quarter of 2019 and $0.8 million for the second quarter of 2018.  For the first six months of 2019, the loan loss provision was $1.4 million compared to $1.6 million in 2018.  At June 30, 2019, the allowance for loan losses of $14.6 million represented 0.79% of outstanding loans (net of overdrafts) and provided coverage of 260% of nonperforming loans compared to 0.78% and 280%, respectively, at March 31, 2019 and 0.80% and 207%, respectively, at December 31, 2018.

 

Noninterest income for the second quarter of 2019 totaled $12.8 million, an increase of $0.2 million, or 1.7%, over the first quarter of 2019 and a $0.2 million, or 1.8%, increase over the second quarter of 2018.  For the first six months of 2019, noninterest income totaled $25.3 million, a $0.3 million, or 1.2%, increase over the same period of 2018.  Higher mortgage banking fees and bank card fees drove the increase compared to the first quarter of 2019.  Higher wealth management fees drove the increase compared to both prior year periods and reflected higher assets under management.         

 

Noninterest expense for the second quarter of 2019 totaled $28.4 million, an increase of $0.2 million, or 0.7%, over the first quarter of 2019 and comparable to the second quarter of 2018.  For the first six months of 2019, noninterest expense totaled $56.6 million, a $0.3 million, or 0.5% increase over the same period of 2018.  The slight increase over the first quarter of 2019 reflected higher compensation expense, primarily mid-year merit raises and commissions.  The increase for the six month period reflected higher compensation expense of $1.1 million that was partially offset by lower other real estate expense of $0.4 million and other expense of $0.4 million.  Higher base salary expense (primarily merit raises) and commissions drove the increase in compensation expense.  Lower valuation adjustments drove the reduction in other real estate expense.  The decrease in other expense primarily reflected lower professional fees.         

 

We realized income tax expense of $4.4 million (effective rate of 25%) for the first six months of 2019 compared to an income tax benefit of $0.1 million for the same period of 2018.  During 2018, we realized tax benefits totaling $2.9 million (1Q - $1.5 million and 2Q - $1.4 million) resulting from the effect of federal tax reform on pension plan contributions made in 2018 for the plan year 2017.     

 

Discussion of Financial Condition

 

Average earning assets were $2.719 billion for the second quarter of 2019, an increase of $14.4 million, or 0.5%, over the first quarter of 2019, and an increase of $164.7 million, or 6.4%, over the fourth quarter of 2018.  The change in average earning assets compared to the first quarter 2019 was primarily attributable to loan growth funded by noninterest bearing deposits, partially offset by a decline in our seasonal public fund balances.  The change in average earning assets over the fourth quarter 2018 was attributable to growth in our overnight funds position and loan portfolio, primarily funded by increases in our noninterest bearing and public fund deposits. 

 

We maintained an average net overnight funds (deposits with banks plus fed funds sold less fed funds purchased) sold position of $251.8 million for the second quarter of 2019 compared to an average net overnight funds sold position of $265.7 million for the first quarter of 2019 and $80.8 million for the fourth quarter of 2018.  The decrease in average net overnight funds compared to the prior quarter reflected loan growth, partially offset by runoff from the investment portfolio. The increase in average overnight funds compared to the fourth quarter of 2018 reflected growth in all deposit products except money market accounts and certificates of deposit, and a reduction in the investment portfolio, partially offset by loan growth.

 

Average loans increased $42.9 million, or 2.4% compared to the first quarter of 2019, and have grown $37.7 million, or 2.1% compared to the fourth quarter of 2018.  Growth over both prior periods occured in all loan types except institutional, home equity, and consumer loans.  During the second quarter of 2019, we purchased pools of adjustable rate residential loans totaling $3.9 million.  In the first quarter 2019, we purchased a $10.3 million pool of fixed and adjustable rate commercial real estate loans and a $4.4 million pool of adjustable rate residential loans.

 

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 $6.6 million at June 30, 2019, a decrease of $0.3 million, or 4.6%, from March 31, 2019 and $2.5 million, or 27.1%, from December 31, 2018.  Nonaccrual loans totaled $5.6 million at June 30, 2019, a $0.6 million increase over March 31, 2019 and a $1.2 million decrease from December 31, 2018.  The balance of OREO totaled $1.0 million at June 30, 2019, a decrease of $0.9 million and $1.2 million, respectively, from March 31, 2019 and December 31, 2018. 

 

Average total deposits were $2.565 billion for the second quarter of 2019, an increase of $0.7 million over the first quarter of 2019, and an increase of $153.1 million, or 6.3% over the fourth quarter of 2018.  The increase in deposits compared to the first quarter of 2019 reflected higher noninterest bearing and savings accounts, partially offset by lower public fund NOW accounts, money market accounts, and certificates of deposit balances. The increase in deposits when compared to the fourth quarter of 2018 reflected growth in all deposit products except money market accounts and certificates of deposit.  Public fund accounts typically peak in the first quarter and trend lower through the fourth quarter due to the cycle of tax receipts.  Deposit levels remain strong, and average core deposits continue to experience growth.  We monitor deposit rates on an ongoing basis as a prudent pricing discipline remains the key to managing our mix of deposits.

 

Average borrowings decreased $2.4 million in the second quarter 2019 compared to the prior quarter, and declined $8.2 million compared to the fourth quarter of 2018. Decreases occurred in both short-term and long-term borrowings as we reduced our repurchase agreements and a portion of our match funded advances from the Federal Home Loan Bank.  

 

Shareowners’ equity was $314.6 million at June 30, 2019, compared to $309.0 million at March 31, 2019 and $302.6 million at December 31, 2018.  Our leverage ratio was 10.64%, 10.53%, and 10.89%, respectively, on these dates.  Further, at June 30, 2019, our total risk-based capital ratio was 17.13% compared to 17.09% and 17.13% at March 31, 2019 and December 31, 2018, respectively.  Our common equity tier 1 capital ratio was 13.67% at June 30, 2019, compared to 13.62% at March 31, 2019 and 13.58% 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 57 banking offices and 81 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 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, 2019

Mar 31, 2019

Dec 31, 2018

Sep 30, 2018

Jun 30, 2018

Shareowners' Equity (GAAP)

 

$

314,595

$

308,986

$

302,587

$

298,016

$

293,571

Less: Goodwill (GAAP)

 

 

84,811

 

84,811

 

84,811

 

84,811

 

84,811

Tangible Shareowners' Equity (non-GAAP)

A

 

229,784

 

224,175

 

217,776

 

213,205

 

208,760

Total Assets (GAAP)

 

 

3,017,654

 

3,052,051

 

2,959,183

 

2,819,190

 

2,880,278

Less: Goodwill (GAAP)

 

 

84,811

 

84,811

 

84,811

 

84,811

 

84,811

Tangible Assets (non-GAAP)

B

$

2,932,843

$

2,967,240

$

2,874,372

$

2,734,379

$

2,795,467

Tangible Common Equity Ratio (non-GAAP)

A/B

 

7.83%

 

7.56%

 

7.58%

 

7.80%

 

7.47%

Actual Diluted Shares Outstanding (GAAP)

C

 

16,773,449

 

16,840,496

 

16,808,542

 

17,127,846

 

17,114,380

Tangible Book Value per Diluted Share (non-GAAP)

A/C

$

13.70

$

13.31

$

12.96

$

12.45

$

12.20

 

 

 

 

 

 

 

 

 

 

 

 

 


 

CAPITAL CITY BANK GROUP, INC.

 

 

 

 

 

 

 

 

 

 

EARNINGS HIGHLIGHTS

 

 

 

 

 

 

 

 

 

 

Unaudited

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

Six Months Ended

(Dollars in thousands, except per share data)

 

Jun 30, 2019

 

Mar 31, 2019

 

Jun 30, 2018

 

Jun 30, 2019

 

Jun 30, 2018

 

 

 

 

 

 

 

 

 

 

 

EARNINGS

 

 

 

 

 

 

 

 

 

 

Net Income

$

7,325

$

6,436

$

6,003

$

13,761

$

11,776

Net Income Per Common Share

$

0.44

$

0.38

$

0.35

$

0.82

$

0.69

PERFORMANCE

 

 

 

 

 

 

 

 

 

 

Return on Average Assets

 

0.98%

 

0.87%

 

0.84%

 

0.92%

 

0.83%

Return on Average Equity

 

9.37%

 

8.49%

 

8.25%

 

8.94%

 

8.20%

Net Interest Margin

 

3.85%

 

3.75%

 

3.58%

 

3.80%

 

3.51%

Noninterest Income as % of Operating Revenue

 

32.95%

 

33.51%

 

35.52%

 

33.23%

 

35.97%

Efficiency Ratio

 

73.02%

 

75.01%

 

80.07%

 

74.00%

 

80.57%

CAPITAL ADEQUACY

 

 

 

 

 

 

 

 

 

 

Tier 1 Capital Ratio

 

16.36%

 

16.34%

 

16.25%

 

16.36%

 

16.25%

Total Capital Ratio

 

17.13%

 

17.09%

 

17.00%

 

17.13%

 

17.00%

Leverage Ratio

 

10.64%

 

10.53%

 

10.69%

 

10.64%

 

10.69%

Common Equity Tier 1 Ratio

 

13.67%

 

13.62%

 

13.46%

 

13.67%

 

13.46%

Tangible Common Equity Ratio(1)

 

7.83%

 

7.56%

 

7.47%

 

7.83%

 

7.47%

Equity to Assets

 

10.43%

 

10.12%

 

10.19%

 

10.43%

 

10.19%

ASSET QUALITY

 

 

 

 

 

 

 

 

 

 

Allowance as % of Non-Performing Loans

 

259.55%

 

279.77%

 

236.25%

 

259.55%

 

236.25%

Allowance as a % of Loans

 

0.79%

 

0.78%

 

0.78%

 

0.79%

 

0.78%

Net Charge-Offs as % of Average Loans

 

0.04%

 

0.20%

 

0.12%

 

0.12%

 

0.16%

Nonperforming Assets as % of Loans and ORE

 

0.36%

 

0.39%

 

0.52%

 

0.36%

 

0.52%

Nonperforming Assets as % of Total Assets

 

0.22%

 

0.23%

 

0.32%

 

0.22%

 

0.32%

STOCK PERFORMANCE

 

 

 

 

 

 

 

 

 

 

High

$

25.00

$

25.87

$

25.99

$

25.87

$

26.50

Low

 

21.57

 

21.04

 

22.28

 

21.04

 

22.28

Close

$

24.85

$

21.78

$

23.63

$

24.85

$

23.63

Average Daily Trading Volume

 

24,258

 

18,407

 

25,246

 

21,380

 

23,204

 

 

 

 

 

 

 

 

 

 

 

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

     refer to page 4.

 

 

 

 

 

 

 

 

 

 

 


 

CAPITAL CITY BANK GROUP, INC.

 

 

 

 

 

 

 

 

 

 

CONSOLIDATED STATEMENT OF FINANCIAL CONDITION

 

 

 

 

 

 

Unaudited

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2019

 

2018

(Dollars in thousands)

 

Second Quarter

 

First Quarter

 

Fourth Quarter

 

Third Quarter

 

Second Quarter

ASSETS

 

 

 

 

 

 

 

 

 

 

Cash and Due From Banks

$

53,731

$

49,501

$

62,032

$

48,423

$

56,573

Funds Sold and Interest Bearing Deposits

 

234,097

 

304,213

 

213,968

 

26,839

 

107,066

Total Cash and Cash Equivalents

 

287,828

 

353,714

 

276,000

 

75,262

 

163,639

 

 

 

 

 

 

 

 

 

 

 

Investment Securities Available for Sale

 

410,851

 

429,016

 

446,157

 

484,243

 

493,662

Investment Securities Held to Maturity

 

229,516

 

226,179

 

217,320

 

227,923

 

236,764

   Total Investment Securities

 

640,367

 

655,195

 

663,477

 

712,166

 

730,426

 

 

 

 

 

 

 

 

 

 

 

Loans Held for Sale

 

9,885

 

4,557

 

6,869

 

8,297

 

8,246

 

 

 

 

 

 

 

 

 

 

 

Loans, Net of Unearned Interest

 

 

 

 

 

 

 

 

 

 

Commercial, Financial, & Agricultural

 

265,001

 

238,942

 

233,689

 

239,044

 

222,406

Real Estate - Construction

 

101,372

 

87,123

 

89,527

 

87,672

 

88,169

Real Estate - Commercial

 

614,618

 

615,129

 

602,061

 

596,391

 

575,993

Real Estate - Residential

 

349,843

 

338,574

 

334,197

 

333,896

 

320,296

Real Estate - Home Equity

 

201,579

 

209,194

 

210,111

 

212,942

 

218,851

Consumer

 

288,196

 

296,351

 

295,040

 

294,040

 

285,599

Other Loans

 

13,131

 

10,430

 

8,018

 

8,167

 

11,648

Overdrafts

 

1,442

 

1,362

 

1,582

 

1,602

 

1,513

Total Loans, Net of Unearned Interest

 

1,835,182

 

1,797,105

 

1,774,225

 

1,773,754

 

1,724,475

Allowance for Loan Losses

 

(14,593)

 

(14,120)

 

(14,210)

 

(14,219)

 

(13,563)

Loans, Net

 

1,820,589

 

1,782,985

 

1,760,015

 

1,759,535

 

1,710,912

 

 

 

 

 

 

 

 

 

 

 

Premises and Equipment, Net

 

86,005

 

86,846

 

87,190

 

89,567

 

90,000

Goodwill

 

84,811

 

84,811

 

84,811

 

84,811

 

84,811

Other Real Estate Owned

 

1,010

 

1,902

 

2,229

 

2,720

 

3,373

Other Assets

 

87,159

 

82,041

 

78,592

 

86,832

 

88,871

Total Other Assets

 

258,985

 

255,600

 

252,822

 

263,930

 

267,055

 

 

 

 

 

 

 

 

 

 

 

Total Assets

$

3,017,654

$

3,052,051

$

2,959,183

$

2,819,190

$

2,880,278

 

 

 

 

 

 

 

 

 

 

 

LIABILITIES

 

 

 

 

 

 

 

 

 

 

Deposits:

 

 

 

 

 

 

 

 

 

 

Noninterest Bearing Deposits

$

1,024,898

$

995,853

$

947,858

$

934,146

$

937,241

NOW Accounts

 

810,568

 

887,453

 

867,209

 

713,967

 

778,131

Money Market Accounts

 

240,181

 

244,628

 

237,739

 

254,099

 

257,965

Regular Savings Accounts

 

371,773

 

372,414

 

358,306

 

352,508

 

354,156

Certificates of Deposit

 

113,684

 

116,946

 

120,744

 

126,496

 

131,697

Total Deposits

 

2,561,104

 

2,617,294

 

2,531,856

 

2,381,216

 

2,459,190

 

 

 

 

 

 

 

 

 

 

 

Short-Term Borrowings

 

9,753

 

8,983

 

13,541

 

16,644

 

7,021

Subordinated Notes Payable

 

52,887

 

52,887

 

52,887

 

52,887

 

52,887

Other Long-Term Borrowings

 

7,313

 

7,661

 

8,568

 

12,456

 

12,897

Other Liabilities

 

72,002

 

56,240

 

49,744

 

57,971

 

54,712

 

 

 

 

 

 

 

 

 

 

 

Total Liabilities

 

2,703,059

 

2,743,065

 

2,656,596

 

2,521,174

 

2,586,707

 

 

 

 

 

 

 

 

 

 

 

SHAREOWNERS' EQUITY

 

 

 

 

 

 

 

 

 

 

Common Stock

 

167

 

168

 

167

 

171

 

171

Additional Paid-In Capital

 

30,751

 

31,929

 

31,058

 

38,325

 

37,932

Retained Earnings

 

310,247

 

304,763

 

300,177

 

293,254

 

288,800

Accumulated Other Comprehensive Loss, Net of Tax

 

(26,570)

 

(27,874)

 

(28,815)

 

(33,734)

 

(33,332)

 

 

 

 

 

 

 

 

 

 

 

Total Shareowners' Equity

 

314,595

 

308,986

 

302,587

 

298,016

 

293,571

 

 

 

 

 

 

 

 

 

 

 

Total Liabilities and Shareowners' Equity

$

3,017,654

$

3,052,051

$

2,959,183

$

2,819,190

$

2,880,278

 

 

 

 

 

 

 

 

 

 

 

OTHER BALANCE SHEET DATA

 

 

 

 

 

 

 

 

 

 

Earning Assets

$

2,719,530

$

2,761,070

$

2,658,539

$

2,521,056

$

2,570,213

Interest Bearing Liabilities

 

1,606,159

 

1,690,972

 

1,658,994

 

1,529,057

 

1,594,754

 

 

 

 

 

 

 

 

 

 

 

Book Value Per Diluted Share

$

18.76

$

18.35

$

18.00

$

17.40

$

17.15

Tangible Book Value Per Diluted Share(1)

 

13.70

 

13.31

 

12.96

 

12.45

 

12.20

 

 

 

 

 

 

 

 

 

 

 

Actual Basic Shares Outstanding

 

16,746

 

16,812

 

16,748

 

17,059

 

17,056

Actual Diluted Shares Outstanding

 

16,773

 

16,840

 

16,809

 

17,128

 

17,114

 

 

 

 

 

 

 

 

 

 

 

(1) Tangible book value per diluted share is a non-GAAP financial measure.  For additional information, including a reconcilation to GAAP, refer to page 4.

 


 

CAPITAL CITY BANK GROUP, INC.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

CONSOLIDATED STATEMENT OF OPERATIONS

 

 

 

 

 

 

 

 

 

 

 

Unaudited

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Six Months Ended

 

 

2019

 

2018

 

June 30,

(Dollars in thousands, except per share data)

 

Second Quarter

 

First Quarter

 

Fourth Quarter

 

Third Quarter

 

Second Quarter

 

2019

 

2018

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

INTEREST INCOME

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest and Fees on Loans

$

23,765

$

22,616

$

22,431

$

21,618

$

20,533

$

46,381

$

40,068

Investment Securities

 

3,393

 

3,513

 

3,478

 

3,472

 

3,156

 

6,906

 

5,918

Funds Sold

 

1,507

 

1,593

 

461

 

302

 

730

 

3,100

 

1,647

Total Interest Income

 

28,665

 

27,722

 

26,370

 

25,392

 

24,419

 

56,387

 

47,633

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

INTEREST EXPENSE

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Deposits

 

1,988

 

2,099

 

1,312

 

1,068

 

995

 

4,087

 

1,863

Short-Term Borrowings

 

31

 

35

 

53

 

41

 

8

 

66

 

16

Subordinated Notes Payable

 

596

 

608

 

572

 

568

 

552

 

1,204

 

1,027

Other Long-Term Borrowings

 

66

 

72

 

85

 

92

 

94

 

138

 

194

Total Interest Expense

 

2,681

 

2,814

 

2,022

 

1,769

 

1,649

 

5,495

 

3,100

Net Interest Income

 

25,984

 

24,908

 

24,348

 

23,623

 

22,770

 

50,892

 

44,533

Provision for Loan Losses

 

646

 

767

 

457

 

904

 

815

 

1,413

 

1,560

Net Interest Income after Provision for

  Loan Losses

 

25,338

 

24,141

 

23,891

 

22,719

 

21,955

 

49,479

 

42,973

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

NONINTEREST INCOME

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Deposit Fees

 

4,756

 

4,775

 

5,172

 

5,207

 

4,842

 

9,531

 

9,714

Bank Card Fees

 

3,036

 

2,855

 

2,830

 

2,828

 

2,909

 

5,891

 

5,720

Wealth Management Fees

 

2,404

 

2,323

 

2,320

 

2,181

 

2,037

 

4,727

 

4,210

Mortgage Banking Fees

 

1,199

 

993

 

1,129

 

1,343

 

1,206

 

2,192

 

2,263

Other

 

1,375

 

1,606

 

1,787

 

1,749

 

1,548

 

2,981

 

3,112

Total Noninterest Income

 

12,770

 

12,552

 

13,238

 

13,308

 

12,542

 

25,322

 

25,019

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

NONINTEREST EXPENSE

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Compensation

 

16,437

 

16,349

 

16,322

 

15,891

 

15,797

 

32,786

 

31,708

Occupancy, Net

 

4,537

 

4,509

 

4,804

 

4,645

 

4,503

 

9,046

 

9,054

Other Real Estate, Net

 

75

 

363

 

(1,663)

 

347

 

248

 

438

 

874

Other

 

7,347

 

6,977

 

7,042

 

7,816

 

7,845

 

14,324

 

14,663

Total Noninterest Expense

 

28,396

 

28,198

 

26,505

 

28,699

 

28,393

 

56,594

 

56,299

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

OPERATING PROFIT

 

9,712

 

8,495

 

10,624

 

7,328

 

6,104

 

18,207

 

11,693

Income Tax Expense (Benefit)

 

2,387

 

2,059

 

2,166

 

1,338

 

101

 

4,446

 

(83)

NET INCOME

$

7,325

$

6,436

$

8,458

$

5,990

$

6,003

$

13,761

$

11,776

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

PER SHARE DATA

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic Net Income

$

0.44

$

0.38

$

0.50

$

0.35

$

0.35

$

0.82

$

0.69

Diluted Net Income

 

0.44

 

0.38

 

0.50

 

0.35

 

0.35

 

0.82

 

0.69

Cash Dividend

$

0.11

$

0.11

$

0.09

$

0.09

$

0.07

$

0.22

$

0.14

AVERAGE SHARES

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic 

 

16,791

 

16,791

 

16,989

 

17,056

 

17,045

 

16,791

 

17,037

Diluted 

 

16,818

 

16,819

 

17,050

 

17,125

 

17,104

 

16,820

 

17,089

 


 

CAPITAL CITY BANK GROUP, INC.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

ALLOWANCE FOR LOAN LOSSES

 

 

 

 

 

 

 

 

 

 

 

 

 

 

AND RISK ELEMENT ASSETS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Unaudited

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Six Months Ended

 

 

2019

 

2018

 

June 30,

(Dollars in thousands, except per share data)

 

Second Quarter

 

First Quarter

 

Fourth Quarter

 

Third Quarter

 

Second Quarter

 

2019

 

2018

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

ALLOWANCE FOR LOAN LOSSES

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance at Beginning of Period

$

14,120

$

14,210

$

14,219

$

13,563

$

13,258

$

14,210

$

13,307

Provision for Loan Losses

 

646

 

767

 

457

 

904

 

815

 

1,413

 

1,560

Net Charge-Offs

 

173

 

857

 

466

 

248

 

510

 

1,030

 

1,304

Balance at End of Period

$

14,593

$

14,120

$

14,210

$

14,219

$

13,563

$

14,593

$

13,563

As a % of Loans

 

0.79%

 

0.78%

 

0.80%

 

0.80%

 

0.78%

 

0.79%

 

0.78%

As a % of Nonperforming Loans

 

259.55%

 

279.77%

 

206.79%

 

207.06%

 

236.25%

 

259.55%

 

236.25%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

CHARGE-OFFS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial, Financial and Agricultural

$

235

$

95

$

53

$

268

$

141

$

330

$

323

Real Estate - Construction

 

-

 

-

 

-

 

-

 

-

 

-

 

7

Real Estate - Commercial

 

-

 

155

 

-

 

25

 

-

 

155

 

290

Real Estate - Residential

 

65

 

264

 

111

 

106

 

456

 

329

 

563

Real Estate - Home Equity

 

45

 

52

 

106

 

112

 

157

 

97

 

315

Consumer

 

520

 

795

 

728

 

463

 

509

 

1,315

 

1,204

Total Charge-Offs

$

865

$

1,361

$

998

$

974

$

1,263

$

2,226

$

2,702

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

RECOVERIES

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial, Financial and Agricultural

$

58

$

74

$

128

$

78

$

87

$

132

$

253

Real Estate - Construction

 

-

 

-

 

25

 

-

 

-

 

-

 

1

Real Estate - Commercial

 

100

 

70

 

13

 

222

 

15

 

170

 

138

Real Estate - Residential

 

223

 

44

 

106

 

107

 

346

 

267

 

430

Real Estate - Home Equity

 

60

 

32

 

61

 

47

 

22

 

92

 

83

Consumer

 

251

 

284

 

199

 

272

 

283

 

535

 

493

Total Recoveries

$

692

$

504

$

532

$

726

$

753

$

1,196

$

1,398

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

NET CHARGE-OFFS

$

173

$

857

$

466

$

248

$

510

$

1,030

$

1,304

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

0.04%

 

0.20%

 

0.10%

 

0.06%

 

0.12%

 

0.12%

 

0.16%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

RISK ELEMENT ASSETS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Nonaccruing Loans

$

5,622

$

5,047

$

6,872

$

6,867

$

5,741

 

 

 

 

Other Real Estate Owned

 

1,010

 

1,902

 

2,229

 

2,720

 

3,373

 

 

 

 

Total Nonperforming Assets

$

6,632

$

6,949

$

9,101

$

9,587

$

9,114

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Past Due Loans 30-89 Days

$

5,443

$

4,682

$

4,757

$

3,684

$

3,472

 

 

 

 

Past Due Loans 90 Days or More

 

-

 

-

 

-

 

126

 

-

 

 

 

 

Classified Loans

 

26,406

 

22,219

 

22,889

 

27,039

 

29,583

 

 

 

 

Performing Troubled Debt Restructuring's

$

18,737

$

20,791

$

22,084

$

28,661

$

29,981

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Nonperforming Loans as a % of Loans

 

0.30%

 

0.28%

 

0.39%

 

0.39%

 

0.33%

 

 

 

 

Nonperforming Assets as a % of Loans and

 

 

 

 

 

 

 

 

 

 

 

 

 

 

   Other Real Estate

 

0.36%

 

0.39%

 

0.51%

 

0.54%

 

0.52%

 

 

 

 

Nonperforming Assets as a % of Total Assets

 

0.22%

 

0.23%

 

0.31%

 

0.34%

 

0.32%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1) Annualized

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


 

CAPITAL CITY BANK GROUP, INC.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

AVERAGE BALANCE AND INTEREST RATES(1)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Unaudited

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Second Quarter 2019

 

 

First Quarter 2019

 

 

Fourth Quarter 2018

 

 

Third Quarter 2018

 

 

Second Quarter 2018

 

 

Jun 2019 YTD

 

 

Jun 2018 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

$

1,823,311

 

23,873

 

5.25

%

$

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

%

$

1,801,977

 

46,591

 

5.21

%

$

1,669,571

 

40,261

 

4.86

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Investment Securities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Taxable Investment Securities

 

614,775

 

3,301

 

2.15

 

 

618,127

 

3,387

 

2.20

 

 

637,735

 

3,325

 

2.08

 

 

663,639

 

3,290

 

1.98

 

 

643,516

 

2,945

 

1.83

 

 

616,442

 

6,688

 

2.18

 

 

631,394

 

5,468

 

1.74

 

Tax-Exempt Investment Securities

 

29,342