Business | WCTV Eyewitness News: Tallahassee, Thomasville, Valdosta

Capital City Bank Group, Inc. Reports Second Quarter 2011 Results

By: Globe Newswire
By: Globe Newswire

TALLAHASSEE, Fla., July 26, 2011 (GLOBE NEWSWIRE) --

Capital City Bank Group, Inc. (Nasdaq:CCBG) today reported net income for the second
quarter of 2011 totaling $2.1 million, or $0.12 per diluted share,
compared to $1.3 million, or $0.08 per diluted share for the first
quarter of 2011 ("linked quarter"), and $0.7 million, or $0.04 per
diluted share, for the second quarter of 2010. For the first six months
of 2011, the Company reported net income of $3.5 million, or $0.20 per
diluted share, compared to a net loss of $2.7 million, or $0.16 per
diluted share for the same period in 2010.

The increase in earnings over the linked quarter reflects higher net
interest income of $0.4 million, lower loan loss provision of $0.6
million, and a reduction in noninterest expense of $2.2 million,
partially offset by a decline in noninterest income of $1.9 million and
higher income tax expense of $0.5 million. Compared to the second
quarter of 2010, a $3.6 million decline in noninterest expense
partially offset by a $1.2 million reduction in operating revenues and
higher income tax expense of $1.0 million drove the improvement in
earnings.

The increase in earnings for the first half of 2011 is attributable to
a lower loan loss provision of $6.7 million, reduction in noninterest
expense of $3.5 million, and higher noninterest income of $2.1 million,
partially offset by lower net interest income of $2.0 million and
higher income tax expense of $4.1 million.

2011 performance reflects the sale of our Visa Class B shares of stock
during the first quarter which resulted in a $2.6 million net gain
($3.2 million pre-tax included in noninterest income and a swap
liability of $0.6 million included in noninterest expense).

"Although we are still facing a challenging operating environment, I am
pleased with our progress," said William G. Smith, Jr., Chairman,
President and Chief Executive Officer. "Profit in the second quarter of
$2.1 million, or $0.12 per share, represents our fifth consecutive
quarter of profitability. Highlights from the quarter include lower
nonperforming assets, declining credit costs, a strong net interest
margin and lower operating expenses. While the economy remains sluggish
and loan growth continues to be a challenge, I am pleased with our
second quarter performance and believe we have momentum as we enter the
latter half of 2011."

The Return on Average Assets was 0.33% and the Return on Average Equity
was 3.28% for the second quarter of 2011. These metrics were 0.20% and
2.03% for the first quarter of 2011, and 0.11% and 1.11% for the second
quarter of 2010, respectively.

For the first half of 2011, the Return on Average Assets was 0.26% and
the Return on Average Equity was 2.66% compared to -0.20% and -2.07%,
respectively, for the first half of 2010.

Discussion of Financial Condition

Average earning assets were $2.259 billion for the second quarter of
2011, a decrease of $19.7 million, or 0.9% from the linked quarter and
an increase of $40.9 million, or 1.8%, from the fourth quarter of 2010.
The lower level of earning assets over the linked quarter was a result
of a decline in the loan portfolio of $26.0 million, partially offset
by higher short-term investments of $6.2 million. Compared to the
fourth quarter of 2010, average overnight funds were higher by $76.4
million, the investment portfolio increased $43.1 million and loans
declined $78.6 million, partially attributable to the resolution of
problem loans during the first six months.

Average loans have declined throughout the portfolio, driven primarily
by a reduction in the commercial real estate, residential and
construction loan categories. The loan portfolio continues to be
impacted by weak loan demand attributable to the lack of consumer
confidence and a sluggish economy. In addition to lower production,
normal amortization and payoffs, the resolution of problem loans (which
has the effect of lowering the loan portfolio as loans are either
charged off or transferred to the other real estate owned ("OREO")
category), contributed to the overall decline. During the second
quarter, problem loan resolutions accounted for $20.8 million or 76% of
the net reduction in total loans of $27.2 million from the linked
quarter. Problem loan resolutions accounted for $36.2 million or 51% of
the net reduction in loans of $71.1 million from the fourth quarter of
2010(1).

Nonperforming assets (including nonaccrual loans, restructured loans
("TDRs"), and OREO) totaled $145.7 million at the end of the second
quarter of 2011, a decrease of $7.7 million from the first quarter of
2011 and an increase of $0.4 million over the fourth quarter of 2010.
Nonaccrual loans decreased $12.9 million to $61.1 million from the
linked quarter primarily due to the migration of loans to the OREO
category. A slowdown in new additions to the nonaccrual category also
contributed to the improvement. Compared to the fourth quarter of 2010,
nonaccrual loans declined by $4.6 million reflecting the movement of
loans to the OREO category and, to a lesser extent, migration to the
TDR category. TDRs totaled $23.6 million at the end of the second
quarter, a $0.4 million decrease from the linked quarter and a $1.9
million increase over the fourth quarter of 2010. The balance of OREO
totaled $61.0 million at the end of the second quarter, a $5.7 million
increase over the linked quarter and $3.1 million over the fourth
quarter of 2010, which reflects our efforts in working problem loans
through the foreclosure process. Overall, a slower pace of loan
defaults, momentum in working loans through the collection cycle, and
progress in our property disposition efforts has contributed to the
overall improvement in our nonperforming asset portfolio. Through the
first six months of 2011, we sold OREO properties totaling $17.7
million, which compares to $18.0 million for the full year 2010.
Nonperforming assets represented 5.60% of total assets at June 30, 2011
compared to 5.76% at March 31, 2011 and 5.54% at December 31, 2010.

Average total deposits were $2.107 billion for the second quarter, a
decrease of $18.1 million, or 0.9%, from the linked quarter and $8.6
million, or 0.4%, from the fourth quarter of 2010. Deposits decreased
in both periods driven primarily by a reduction in certificates of
deposit. Additionally, a decrease resulting from existing clients
moving from our Guaranteed Now Account product to repurchase agreements
occurred late in the fourth quarter of 2010 as further discussed below.
Public funds balances increased as anticipated from the fourth quarter
of 2010, but have declined from the first quarter level, which reflects
the seasonality within this deposit category. Savings and money market
accounts experienced a slight increase in both periods, partially
offsetting the above mentioned decline.

As a result of changes in the FDIC's Temporary Liquidity Guarantee
Program, our government guaranteed NOW product was discontinued during
the fourth quarter. As of December 31, 2010, approximately $95 million
in balances from this product remained in the NOW category, $95 million
migrated to the noninterest bearing DDA category, and $60 million moved
into repurchase agreements.

We continue to pursue prudent pricing discipline to manage the mix of
our deposits. Therefore, we are not attempting to compete with higher
rate paying competitors for deposits.

We maintained an average net overnight funds (deposits with banks plus
fed funds sold less fed funds purchased) sold position of $249.1
million during the second quarter of 2011 compared to an average
overnight funds sold position of $238.1 million in the linked quarter
and $164.9 million in the fourth quarter of 2010. The higher balance
when compared to the linked quarter primarily reflects a decline in the
loan portfolio, partially offset by the decrease in deposits mentioned
above and lower levels of short-term borrowings. The favorable variance
as compared to the fourth quarter of 2010 is primarily attributable to
an increase in repurchase agreements and a net reduction in loans,
partially offset by a decline in deposits and the deployment of funds
to the investment portfolio.

Equity capital was $260.5 million as of June 30, 2011, compared to
$259.3 million as of March 31, 2011 and $259.0 million as of December
31, 2010. Our leverage ratio was 9.95%, 9.74%, and 10.10%,
respectively, for these periods. Further, our risk-adjusted capital
ratio of 15.19% at June 30, 2011 exceeds the 10.0% threshold to be
designated as "well-capitalized" under the risk-based regulatory
guidelines. At June 30, 2011, our tangible common equity ratio was
6.96%, compared to 6.73% at March 31, 2011 and 6.82% at December 31,
2010.

Discussion of Operating Results

Tax equivalent net interest income for the second quarter of 2011 was
$23.7 million compared to $23.3 million for the first quarter of 2010
and $24.7 million for the second quarter of 2010. For the first six
months of 2011, tax equivalent net interest income totaled $47.0
million compared to $49.2 million in 2010.

The increase of $0.4 million in tax equivalent net interest income on a
linked quarter basis was due to lower cost of funds and one additional
calendar day. Lower interest expense reflects a reduction in deposit
rates, primarily in certificates of deposit. Interest income on earning
assets was higher as a result of the one additional calendar day.
Additionally, net interest income was impacted by favorable net
interest adjustments on nonaccrual loans (i.e. quarter over quarter
improvement in the level of interest income reversals), which offset
lower interest income attributable to a reduction in loans outstanding
and unfavorable asset repricing.

The decrease in tax equivalent net interest income of $1.0 million and
$2.2 million, for the three and six month periods ended June 30, 2011,
respectively, as compared to the same periods in 2010, resulted from a
reduction in loans outstanding, lower earning assets yields reflecting
unfavorable asset repricing and lower loan fees, partially offset by a
reduction in interest expense and favorable net interest adjustments as
noted above.

The net interest margin in the second quarter of 2011 was 4.21%, an
increase of 7 basis points over the linked quarter and a decline of 6
basis points from the second quarter of 2010. Year over year, for the
six month period, the margin declined 7 basis points to 4.17%. The
increase in the margin when compared to the linked quarter reflects a 3
basis point reduction in the cost of funds, and an improvement in the
yield on earning assets of 4 basis points. The higher yield on earning
assets was primarily attributable to an increase in the loan yield
resulting from the favorable interest income adjustments mentioned
above, while the lower cost of funds resulted from a reduction in the
rates on certificates of deposit, which were significantly reduced in
all markets. The 7 basis point decline in the margin for the six months
of 2011 is attributable to the shift in our earning asset mix and
unfavorable asset repricing, partially offset by a favorable variance
in our average cost of funds.

The provision for loan losses for the second quarter of 2011 was $3.5
million compared to $4.1 million in the first quarter of 2011 and $3.6
million for the second quarter of 2010. The reduction in the loan loss
provision for both periods primarily reflects a reduction in the level
of impaired loans and required reserves. For the first six months of
2011, the loan loss provision totaled $7.7 million compared to $14.4
million for the same period in 2010, also reflective of lower impaired
loan reserves as well as a decline in general reserves, primarily due
to a reduction in the level of internally classified loans and lower
loss rates. Net charge-offs for the second quarter of 2011 totaled $6.3
million, or 1.49%, of average loans compared to $5.7 million, or 1.33%
for the first quarter of 2011 and $6.4 million, or 1.39% in the second
quarter of 2010. For the first half of 2011, net charge-offs totaled
$12.0 million, or 1.41%, of average loans compared to $19.9 million, or
2.16% for the same period of 2010. At quarter-end, the allowance for
loan losses of $31.1 million was 1.84% of outstanding loans (net of
overdrafts) and provided coverage of 37% of nonperforming loans
compared to 1.98% and 35%, respectively, at March 31, 2011, and 2.01%
and 41%, respectively, at December 31, 2010.

Noninterest income for the second quarter of 2011 totaled $14.4
million, a decrease of $1.9 million, or 11.5% from the first quarter of
2011 and $0.2 million, or 1.5% from the second quarter of 2010. The
unfavorable variance compared to the linked quarter reflects the sale
of our Class B shares of Visa stock during the first quarter of 2011,
which resulted in a $3.2 million pre-tax gain (reflected in other
income), as well as a $0.2 million reduction in data processing fees.
Favorable variances for deposit fees, retail brokerage fees, and gains
from the sale of OREO partially offset the aforementioned unfavorable
variances. For the first six months of 2011, noninterest income totaled
$30.8 million, an increase of $2.1 million over the same period of 2010
driven by the Visa gain, partially offset by lower deposit and merchant
fees. The decline in deposit fees reflects a lower level of overdraft
fees due to reduced activity as well as the implementation of new rules
under Regulation E. The reduction in merchant fees reflects the
transfer of our merchant processing business to another processor,
which was completed in August 2010. The decline in our merchant fees is
substantially offset by a reduction in processing costs, which are
reflected as interchange fees in noninterest expense.

Noninterest expense for the second quarter of 2011 totaled $31.2
million, a decrease of $2.2 million from the first quarter of 2011 and
$3.5 million from the second quarter of 2010. The decline over the
linked quarter reflects lower expense for compensation of $0.6 million,
FDIC insurance of $0.3 million, intangible amortization of $0.2
million, OREO expenses of $0.6 million, and miscellaneous expense of
$0.3 million. Compensation expense declined due to a reduction in
performance compensation and lower unemployment taxes. The reduction in
FDIC insurance expense reflects a lower rate due to recent changes to
the FDIC premium structure. Intangible amortization expense declined
due to the full amortization of core deposit intangibles related to
several past acquisitions. The lower level of OREO expense primarily
reflects a reduction in the level of losses recognized on the sale of
OREO. Recognition of a $0.6 million swap liability associated with the
sale of our Visa shares during the first quarter of 2011 drove the
favorable variance in miscellaneous expense. For the first six months
of 2011, noninterest expense totaled $64.5 million, a $3.5 million
decline from the same period of 2010 attributable to lower professional
fees of $0.3 million, advertising expense of $0.3 million, FDIC
insurance of $0.7 million, intangible amortization expense of $1.0
million, and interchange fees of $0.9 million. Professional fees
declined due to lower consulting fees and appraisal fees for OREO
properties. The reduction in advertising fees reflects a lower level of
activity as well as improved efficiencies gained from restructuring of
the direct mail campaigns for our free checking products. The reduction
in FDIC insurance expense reflects a lower rate due to recent changes
to the FDIC premium structure. Intangible amortization expense declined
due to the full amortization of core deposit intangibles related to
several past acquisitions. Lower interchange fees are attributable to
the sale of our merchant processing business as noted above in our
discussion of noninterest income.

About Capital City Bank Group, Inc.

Capital City Bank Group, Inc. ("The Company") (Nasdaq:CCBG) is one of
the largest publicly traded financial services companies headquartered
in Florida and has approximately $2.6 billion in assets. The Company
provides a full range of banking services, including traditional
deposit and credit services, asset management, trust, mortgage banking,
merchant services, bankcards, data processing and securities brokerage
services. The Company's bank subsidiary, Capital City Bank, was founded
in 1895 and now has 70 banking offices and 79 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 the Company's future results to differ materially.
The following factors, among others, could cause the Company's actual
results to differ: legislative or regulatory changes, including the
Dodd-Frank Act; the strength of the U.S. economy and the local
economies where the Company conducts operations; the accuracy of the
Company's financial statement estimates and assumptions, including the
estimate for the Company's loan loss provision; the frequency and
magnitude of foreclosure of the Company's loans; continued depression
of the market value of the Company that could result in an impairment
of goodwill; restrictions on our operations, including the inability to
pay dividends without our regulators' consent; the effects of the
health and soundness of other financial institutions, including the
FDIC's need to increase Deposit Insurance Fund assessments; our ability
to declare and pay dividends; the effects of the Company's lack of a
diversified loan portfolio, including the risks of geographic and
industry concentrations; harsh weather conditions and man-made
disasters; fluctuations in inflation, interest rates, or monetary
policies; 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; technological changes;
the effects of security breaches and computer viruses that may affect
the Company's computer systems; changes in consumer spending and
savings habits; the Company's growth and profitability; changes in
accounting; the Company's ability to integrate acquisitions; and the
Company's ability to manage the risks involved in the foregoing.
Additional factors can be found in the Company's Annual Report on Form
10-K for the fiscal year ended December 31, 2010, and the Company's
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 the Company
assumes no obligation to update forward-looking statements or the
reasons why actual results could differ.

(1) The problem loan resolutions and reductions in portfolio balances
stated in this paragraph are based on "as of" balances, not averages.

EARNINGS HIGHLIGHTS
----------------------------------------------------------------------------

Three Months Ended Six Months Ended
---------------------------- --------------------

(Dollars in thousands, Jun 30, Mar 31, Jun 30, Jun 30, Jun 30,
except per share data) 2011 2011 2010 2011 2010
------------------------ -------- -------- -------- -------- ----------
EARNINGS
Net Income (Loss) $ 2,145 $ 1,310 $ 731 $ 3,455 $ (2,732)

Net Income (Loss) Per
Common Share $ 0.12 $ 0.08 $ 0.04 $ 0.20 $ (0.16)
------------------------ -------- -------- -------- -------- ----------
PERFORMANCE
Return on Average Equity 3.28% 2.03% 1.11% 2.66% -2.07%
Return on Average Assets 0.33% 0.20% 0.11% 0.26% -0.20%
Net Interest Margin 4.21% 4.14% 4.26% 4.17% 4.24%
Noninterest Income as %
of Operating Revenue 38.13% 41.54% 37.58% 39.87% 37.18%

Efficiency Ratio 81.41% 83.30% 86.06% 82.37% 85.54%
------------------------ -------- -------- -------- -------- ----------
CAPITAL ADEQUACY
Tier 1 Capital Ratio 13.83% 13.46% 12.78% 13.83% 12.78%
Total Capital Ratio 15.19% 14.82% 14.14% 15.19% 14.14%
Tangible Common Equity
Ratio 6.96% 6.73% 6.80% 6.96% 6.80%
Leverage Ratio 9.95% 9.74% 9.58% 9.95% 9.58%

Equity to Assets 10.02% 9.74% 9.87% 10.02% 9.87%
------------------------ -------- -------- -------- -------- ----------
ASSET QUALITY
Allowance as % of
Non-Performing Loans 36.71% 34.57% 37.80% 36.71% 37.80%
Allowance as a % of
Loans 1.84% 1.98% 2.11% 1.84% 2.11%
Net Charge-Offs as % of
Average Loans 1.49% 1.33% 1.39% 1.41% 2.16%
Nonperforming Assets as
% of Loans and ORE 8.33% 8.66% 8.01% 8.33% 8.01%

Nonperforming Assets as
% of Total Assets 5.60% 5.76% 5.65% 5.60% 5.65%
------------------------ -------- -------- -------- -------- ----------
STOCK PERFORMANCE
High $ 13.12 $ 13.80 $ 18.25 $ 13.80 $ 18.25
Low $ 9.94 $ 11.87 $ 12.36 $ 9.94 $ 11.57
Close $ 10.26 $ 12.68 $ 12.38 $ 10.26 $ 12.38

Average Daily Trading
Volume 29,716 21,740 46,507 25,696 36,917
------------------------ -------- -------- -------- -------- ----------

CAPITAL CITY BANK GROUP, INC.
CONSOLIDATED STATEMENT OF OPERATIONS

Unaudited
--------------------------------------------------------------------------------------------------------
Six Months Ended
June 30

2011 2011 2010 2010 2010
(Dollars in thousands, Second First Fourth Third Second
except per share data) Quarter Quarter Quarter Quarter Quarter 2011 2010
-------------------------- --------- --------- --------- --------- --------- --------- ----------

INTEREST INCOME
Interest and Fees on Loans $ 24,305 $ 23,947 $ 25,656 $ 26,418 $ 26,644 $ 48,252 $ 53,636
Investment Securities 1,017 1,071 1,080 1,014 1,114 2,088 2,104

Funds Sold 145 171 95 144 176 316 348
-------------------------- --------- --------- --------- --------- --------- --------- ----------

Total Interest Income 25,467 25,189 26,831 27,576 27,934 50,656 56,088
-------------------------- --------- --------- --------- --------- --------- --------- ----------

INTEREST EXPENSE
Deposits 1,083 1,258 1,524 1,820 2,363 2,341 5,301
Short-Term Borrowings 110 111 99 31 12 221 29
Subordinated Notes Payable 343 340 342 376 639 683 1,290

Other Long-Term Borrowings 492 494 508 565 551 986 1,077
-------------------------- --------- --------- --------- --------- --------- --------- ----------

Total Interest Expense 2,028 2,203 2,473 2,792 3,565 4,231 7,697
-------------------------- --------- --------- --------- --------- --------- --------- ----------
Net Interest Income 23,439 22,986 24,358 24,784 24,369 46,425 48,391

Provision for Loan Losses 3,545 4,133 3,783 5,668 3,633 7,678 14,373
-------------------------- --------- --------- --------- --------- --------- --------- ----------

Net Interest Income after
Provision for Loan Losses 19,894 18,853 20,575 19,116 20,736 38,747 34,018
-------------------------- --------- --------- --------- --------- --------- --------- ----------

NONINTEREST INCOME
Service Charges on Deposit
Accounts 6,309 5,983 6,434 6,399 7,039 12,292 13,667
Data Processing Fees 764 974 880 911 919 1,738 1,819
Asset Management Fees 1,080 1,080 1,095 1,040 1,080 2,160 2,100
Retail Brokerage Fees 939 729 738 671 846 1,668 1,411
Gain on Sale of Investment
Securities -- -- -- 3 -- -- 5
Mortgage Banking Fees 568 617 1,027 772 641 1,185 1,149
Interchange Fees (1) 1,443 1,360 1,285 1,291 1,289 2,803 2,501
ATM/Debit Card Fees (1) 1,115 1,136 1,051 1,036 1,073 2,251 2,036

Other 2,230 4,455 2,225 1,326 1,787 6,685 3,953
-------------------------- --------- --------- --------- --------- --------- --------- ----------

Total Noninterest
Income 14,448 16,334 14,735 13,449 14,674 30,782 28,641
-------------------------- --------- --------- --------- --------- --------- --------- ----------

NONINTEREST EXPENSE
Salaries and Associate
Benefits 16,000 16,577 15,389 15,003 15,584 32,577 32,363
Occupancy, Net 2,447 2,396 2,406 2,611 2,585 4,843 4,993
Furniture and Equipment 2,117 2,226 2,268 2,288 2,192 4,343 4,373
Intangible Amortization 107 353 553 709 710 460 1,420
Other Real Estate 3,033 3,677 4,709 3,306 4,082 6,710 6,907

Other 7,463 8,102 8,215 8,446 9,476 15,565 17,957
-------------------------- --------- --------- --------- --------- --------- --------- ----------

Total Noninterest
Expense 31,167 33,331 33,540 32,363 34,629 64,498 68,013
-------------------------- --------- --------- --------- --------- --------- --------- ----------

OPERATING PROFIT(LOSS) 3,175 1,856 1,770 202 781 5,031 (5,354)

Provision for Income Taxes 1,030 546 (148) (199) 50 1,576 (2,622)
-------------------------- --------- --------- --------- --------- --------- --------- ----------

NET INCOME(LOSS) $ 2,145 $ 1,310 $ 1,918 $ 401 $ 731 $ 3,455 $ (2,732)
-------------------------- --------- --------- --------- --------- --------- --------- ----------

PER SHARE DATA
Basic Earnings $ 0.12 $ 0.08 $ 0.12 $ 0.02 $ 0.04 $ 0.20 $ (0.16)
Diluted Earnings $ 0.12 $ 0.08 $ 0.12 $ 0.02 $ 0.04 $ 0.20 $ (0.16)
Cash Dividends 0.100 0.100 0.100 0.100 0.100 0.200 0.290
AVERAGE SHARES
Basic 17,127 17,122 17,095 17,087 17,063 17,124 17,060

Diluted 17,139 17,130 17,096 17,088 17,074 17,135 17,071
-------------------------- --------- --------- --------- --------- --------- --------- ----------
(1) Together referred to as "Bank Card Fees"

CAPITAL CITY BANK GROUP, INC.
CONSOLIDATED STATEMENT OF FINANCIAL
CONDITION

Unaudited
---------------------------------------------------------------------------------------------------

2011 2011 2010 2010 2010
(Dollars in thousands, except Second First Fourth Third Second
per share data) Quarter Quarter Quarter Quarter Quarter
----------------------------- ------------ ------------ ------------ ------------ ------------

ASSETS
Cash and Due From Banks $ 71,554 $ 52,000 $ 35,410 $ 48,701 $ 52,380

Funds Sold and Interest
Bearing Deposits 223,183 271,375 200,783 193,415 250,508
----------------------------- ------------ ------------ ------------ ------------ ------------
Total Cash and Cash
Equivalents 294,737 323,375 236,193 242,116 302,888

Investment Securities,
Available-for-Sale 304,313 311,356 309,731 231,303 218,785

Loans, Net of Unearned
Interest
Commercial, Financial, &
Agricultural 149,830 153,960 157,394 156,049 161,268
Real Estate - Construction 30,867 35,614 43,239 45,346 56,910
Real Estate - Commercial 660,058 668,583 671,702 680,639 676,516
Real Estate - Residential 395,126 404,204 420,604 448,704 450,997
Real Estate - Home Equity 248,228 248,745 251,565 250,795 247,726
Consumer 194,624 196,205 200,727 207,207 215,723
Other Loans 5,987 5,098 9,937 9,828 9,498

Overdrafts 2,882 2,385 3,503 2,669 3,144
----------------------------- ------------ ------------ ------------ ------------ ------------
Total Loans, Net of
Unearned Interest 1,687,602 1,714,794 1,758,671 1,801,237 1,821,782

Allowance for Loan Losses (31,080) (33,873) (35,436) (37,720) (38,442)
----------------------------- ------------ ------------ ------------ ------------ ------------
Loans, Net 1,656,522 1,680,921 1,723,235 1,763,517 1,783,340

Premises and Equipment, Net 112,576 113,918 115,356 115,689 116,802
Intangible Assets 85,699 85,806 86,159 86,712 87,421
Other Real Estate Owned 61,016 55,364 57,937 51,208 48,110

Other Assets 84,395 91,754 93,442 89,451 93,398
----------------------------- ------------ ------------ ------------ ------------ ------------

Total Other Assets 343,686 346,842 352,894 343,060 345,731
----------------------------- ------------ ------------ ------------ ------------ ------------

Total Assets $ 2,599,258 $ 2,662,494 $ 2,622,053 $ 2,579,996 $ 2,650,744
----------------------------- ------------ ------------ ------------ ------------ ------------

LIABILITIES
Deposits:
Noninterest Bearing
Deposits $ 568,813 $ 540,184 $ 546,257 $ 479,887 $ 460,168
NOW Accounts 764,480 818,512 770,149 830,297 891,636
Money Market Accounts 283,230 288,224 275,416 282,848 303,369
Regular Savings Accounts 153,403 150,051 139,888 135,143 132,174

Certificates of Deposit 331,085 350,076 372,266 393,268 412,964
----------------------------- ------------ ------------ ------------ ------------ ------------
Total Deposits 2,101,011 2,147,047 2,103,976 2,121,443 2,200,311

Short-Term Borrowings 65,237 86,650 92,928 38,138 21,376
Subordinated Notes Payable 62,887 62,887 62,887 62,887 62,887
Other Long-Term Borrowings 49,196 50,050 50,101 46,456 55,605

Other Liabilities 60,383 56,582 53,142 50,383 48,885
----------------------------- ------------ ------------ ------------ ------------ ------------

Total Liabilities 2,338,714 2,403,216 2,363,034 2,319,307 2,389,064
----------------------------- ------------ ------------ ------------ ------------ ------------

SHAREOWNERS' EQUITY
Common Stock 171 171 171 171 171
Additional Paid-In Capital 37,724 37,548 36,920 36,864 36,633
Retained Earnings 237,709 237,276 237,679 237,471 238,779

Accumulated Other
Comprehensive Loss, Net of
Tax (15,060) (15,717) (15,751) (13,817) (13,903)
----------------------------- ------------ ------------ ------------ ------------ ------------

Total Shareowners' Equity 260,544 259,278 259,019 260,689 261,680
----------------------------- ------------ ------------ ------------ ------------ ------------

Total Liabilities and
Shareowners' Equity $ 2,599,258 $ 2,662,494 $ 2,622,053 $ 2,579,996 $ 2,650,744
----------------------------- ------------ ------------ ------------ ------------ ------------

OTHER BALANCE SHEET DATA
Earning Assets $ 2,215,098 $ 2,297,525 $ 2,269,185 $ 2,225,955 $ 2,291,075
Intangible Assets
Goodwill 84,811 84,811 84,811 84,811 84,811
Core Deposits 378 437 742 1,248 1,910
Other 510 558 606 653 700

Interest Bearing Liabilities 1,709,518 1,806,450 1,763,635 1,789,037 1,880,011
----------------------------- ------------ ------------ ------------ ------------ ------------

Book Value Per Diluted Share $ 15.20 $ 15.13 $ 15.15 $ 15.25 $ 15.32

Tangible Book Value Per
Diluted Share 10.21 10.13 10.11 10.18 10.21
----------------------------- ------------ ------------ ------------ ------------ ------------

Actual Basic Shares
Outstanding 17,127 17,127 17,100 17,095 17,067

Actual Diluted Shares
Outstanding 17,139 17,136 17,101 17,096 17,078
----------------------------- ------------ ------------ ------------ ------------ ------------

CAPITAL CITY BANK GROUP, INC.
ALLOWANCE FOR LOAN LOSSES
AND NONPERFORMING ASSETS

Unaudited
------------------------------------------------------------------------------------------
2011 2011 2010 2010 2010

Second First Fourth Third Second
(Dollars in thousands) Quarter Quarter Quarter Quarter Quarter
------------------------------ ---------- ---------- ---------- ---------- ----------

ALLOWANCE FOR LOAN LOSSES
Balance at Beginning of Period $ 33,873 $ 35,436 $ 37,720 $ 38,442 $ 41,199
Provision for Loan Losses 3,545 4,133 3,783 5,668 3,633
Transfer of Unfunded Reserve
to Other Liability -- -- -- -- --

Net Charge-Offs 6,338 5,696 6,067 6,390 6,390
------------------------------ ---------- ---------- ---------- ---------- ----------

Balance at End of Period $ 31,080 $ 33,873 $ 35,436 $ 37,720 $ 38,442
------------------------------ ---------- ---------- ---------- ---------- ----------
As a % of Loans 1.84% 1.98% 2.01% 2.10% 2.11%
As a % of Nonperforming Loans 36.71% 34.57% 40.57% 39.94% 37.80%

As a % of Nonperforming Assets 21.34% 22.09% 24.39% 25.90% 25.66%
------------------------------ ---------- ---------- ---------- ---------- ----------

CHARGE-OFFS
Commercial, Financial and
Agricultural $ 301 $ 721 $ 629 $ 242 $ 405
Real Estate - Construction 14 -- 234 701 1,220
Real Estate - Commercial 2,808 430 1,469 1,741 920
Real Estate - Residential 3,315 4,445 3,629 3,175 4,725

Consumer 606 620 582 1,057 360
------------------------------ ---------- ---------- ---------- ---------- ----------

Total Charge-Offs $ 7,044 $ 6,216 $ 6,543 $ 6,916 $ 7,630
------------------------------ ---------- ---------- ---------- ---------- ----------

RECOVERIES
Commercial, Financial and
Agricultural $ 43 $ 63 $ 48 $ 65 $ 181
Real Estate - Construction 5 9 -- -- 8
Real Estate - Commercial 115 12 55 6 43
Real Estate - Residential 170 96 7 181 638

Consumer 373 340 366 274 370
------------------------------ ---------- ---------- ---------- ---------- ----------

Total Recoveries $ 706 $ 520 $ 476 $ 526 $ 1,240
------------------------------ ---------- ---------- ---------- ---------- ----------

NET CHARGE-OFFS $ 6,338 $ 5,696 $ 6,067 $ 6,390 $ 6,390
------------------------------ ---------- ---------- ---------- ---------- ----------

Net Charge-Offs as a % of
Average Loans(1) 1.49% 1.33% 1.35% 1.40% 1.39%
------------------------------ ---------- ---------- ---------- ---------- ----------

RISK ELEMENT ASSETS
Nonaccruing Loans $ 61,076 $ 73,954 $ 65,700 $ 74,168 $ 74,504

Restructured Loans 23,582 24,028 21,649 20,267 27,200
------------------------------ ---------- ---------- ---------- ---------- ----------
Total Nonperforming Loans 84,658 97,982 87,349 94,435 101,704

Other Real Estate 61,016 55,364 57,937 51,208 48,110
------------------------------ ---------- ---------- ---------- ---------- ----------

Total Nonperforming Assets $ 145,674 $ 153,346 $ 145,286 $ 145,643 $ 149,814
------------------------------ ---------- ---------- ---------- ---------- ----------

Past Due Loans 30-89 Days $ 18,103 $ 19,391 $ 24,193 $ 24,904 $ 21,192

Past Due Loans 90 Days or More $ 271 $ -- $ 159 $ -- $ --
------------------------------ ---------- ---------- ---------- ---------- ----------

Nonperforming Loans as a % of
Loans 5.02% 5.71% 4.97% 5.24% 5.58%
Nonperforming Assets as a % of
Loans and Other Real Estate 8.33% 8.66% 8.00% 7.86% 8.01%
Nonperforming Assets as a % of
Capital(2) 49.95% 52.31% 49.34% 48.81% 49.92%

Nonperforming Assets as a % of
Total Assets 5.60% 5.76% 5.54% 5.65% 5.65%
------------------------------ ---------- ---------- ---------- ---------- ----------

(1) Annualized
(2) Capital includes allowance for loan losses.

AVERAGE BALANCE AND INTEREST RATES(1)

Unaudited
----------------------------------------------------------------------------------------------------------------------

Second Quarter 2011 First Quarter 2011 Fourth Quarter 2010
-------------------------------- -------------------------------- --------------------------------

(Dollars in Average Average Average Average Average Average
thousands) Balance Interest Rate Balance Interest Rate Balance Interest Rate
---------------- ------------ --------- ------- ------------ --------- ------- ------------ --------- -------

ASSETS:
Loans, Net of
Unearned
Interest $ 1,704,348 24,465 5.76% $ 1,730,330 24,101 5.65% $ 1,782,916 25,799 5.74%

Investment
Securities
Taxable
Investment
Securities 244,487 825 1.35% 231,153 851 1.48% 178,926 799 1.78%

Tax-Exempt
Investment
Securities 60,963 297 1.95% 74,226 337 1.81% 83,469 434 2.08%
---------------- ------------ --------- ------- ------------ --------- ------- ------------ --------- -------

Total Investment
Securities 305,450 1,122 1.47% 305,379 1,188 1.56% 262,395 1,233 1.87%

Funds Sold 249,133 145 0.23% 242,893 171 0.28% 172,738 95 0.24%
---------------- ------------ --------- ------- ------------ --------- ------- ------------ --------- -------

Total Earning
Assets 2,258,931 $ 25,732 4.57% $ 25,460 4.53% $ 27,127 4.85%
--------- ------- 2,278,602 --------- ------- 2,218,049 --------- -------

Cash and Due
From Banks 47,465 50,942 51,030
Allowance for
Loan Losses (32,993) (34,822) (37,713)

Other Assets 344,884 348,295 345,427
---------------- ------------ ------------ ------------

Total Assets $ 2,618,287 $ 2,643,017 $ 2,576,793
---------------- ------------ ------------ ------------

LIABILITIES:
Interest Bearing
Deposits
NOW Accounts $ 782,698 $ 259 0.13% $ 786,939 $ 261 0.13% $ 837,625 $ 296 0.14%
Money Market
Accounts 284,411 136 0.19% 278,562 131 0.19% 282,887 134 0.19%
Savings Accounts 152,599 16 0.04% 144,623 18 0.05% 136,276 16 0.05%

Time Deposits 338,723 672 0.80% 360,575 848 0.95% 382,870 1,078 1.12%
---------------- ------------ --------- ------- ------------ --------- ------- ------------ --------- -------
Total Interest
Bearing
Deposits 1,558,431 1,083 0.28% 1,570,699 1,258 0.32% 1,639,658 1,524 0.37%

Short-Term
Borrowings 76,754 110 0.58% 87,267 111 0.52% 34,706 99 1.14%
Subordinated
Notes Payable 62,887 343 2.16% 62,887 340 2.16% 62,887 342 2.13%

Other Long-Term
Borrowings 49,650 492 3.97% 50,345 494 3.98% 50,097 508 4.02%
---------------- ------------ --------- ------- ------------ --------- ------- ------------ --------- -------

Total Interest
Bearing
Liabilities 1,747,722 $ 2,028 0.47% $ 2,203 0.50% $ 2,473 0.55%
--------- ------- 1,771,198 --------- ------- 1,787,348 --------- -------

Noninterest
Bearing
Deposits 548,870 554,680 476,209

Other
Liabilities 59,324 55,536 50,614
---------------- ------------ ------------ ------------

Total
Liabilities 2,355,916 2,381,414 2,314,171

SHAREOWNERS'
EQUITY: $ 262,371 $ 261,603 $ 262,622
---------------- ------------ ------------ ------------

Total
Liabilities and
Shareowners'
Equity $ 2,618,287 $ 2,643,017 $ 2,576,793
---------------- ------------ ------------ ------------

Interest Rate
Spread $ 23,704 4.10% $ 23,257 4.03% $ 24,654 4.30%
---------------- ------------ --------- ------- ------------ --------- ------- ------------ --------- -------

Interest Income
and Rate
Earned(1) $ 25,732 4.57% $ 25,460 4.53% $ 27,127 4.85%

Interest Expense
and Rate
Paid(2) 2,028 0.36% 2,203 0.39% 2,473 0.44%
---------------- ------------ --------- ------- ------------ --------- ------- ------------ --------- -------

Net Interest
Margin $ 23,704 4.21% $ 23,257 4.14% $ 24,654 4.41%
---------------- ------------ --------- ------- ------------ --------- ------- ------------ --------- -------

Third Quarter 2010 Second Quarter 2010
-------------------------------- --------------------------------

Average Average Average Average
(Dollars in thousands) Balance Interest Rate Balance Interest Rate
--------------------------- ------------ --------- ------- ------------ --------- -------

ASSETS:
Loans, Net of Unearned
Interest $ 1,807,483 26,568 5.83% $ 1,841,379 26,795 5.84%

Investment Securities
Taxable Investment
Securities 124,625 674 2.15% 128,268 708 2.21%

Tax-Exempt Investment
Securities 88,656 521 2.35% 92,140 624 2.71%
--------------------------- ------------ --------- ------- ------------ --------- -------

Total Investment Securities 213,281 1,195 2.23% 220,408 1,332 2.42%

Funds Sold 252,434 144 0.22% 267,578 176 0.26%
--------------------------- ------------ --------- ------- ------------ --------- -------

Total Earning Assets 2,273,198 $ 27,907 4.87% $ 28,303 4.87%
--------- ------- 2,329,365 --------- -------

Cash and Due From Banks 50,942 50,739
Allowance for Loan Losses (39,584) (41,074)

Other Assets 342,202 339,458
--------------------------- ------------ ------------

Total Assets $ 2,626,758 $ 2,678,488
--------------------------- ------------ ------------

LIABILITIES:
Interest Bearing Deposits
NOW Accounts $ 871,158 $ 326 0.15% $ 879,329 $ 400 0.18%
Money Market Accounts 293,424 145 0.20% 333,976 331 0.40%
Savings Accounts 133,690 17 0.05% 131,333 17 0.05%

Time Deposits 402,880 1,332 1.31% 430,571 1,615 1.50%
--------------------------- ------------ --------- ------- ------------ --------- -------
Total Interest Bearing
Deposits 1,701,152 1,820 0.42% 1,775,209 2,363 0.53%

Short-Term Borrowings 23,388 31 0.54% 22,694 12 0.20%
Subordinated Notes Payable 62,887 376 2.34% 62,887 639 4.02%

Other Long-Term Borrowings 54,258 565 4.13% 52,704 551 4.20%
--------------------------- ------------ --------- ------- ------------ --------- -------

Total Interest Bearing
Liabilities 1,841,685 $ 2,792 0.60% $ 3,565 0.75%
--------- ------- 1,913,494 --------- -------

Noninterest Bearing
Deposits 471,013 458,969

Other Liabilities 50,318 42,152
--------------------------- ------------ ------------

Total Liabilities 2,363,016 2,414,615

SHAREOWNERS' EQUITY: $ 263,742 $ 263,873
--------------------------- ------------ ------------

Total Liabilities and
Shareowners' Equity $ 2,626,758 $ 2,678,488
--------------------------- ------------ ------------

Interest Rate Spread $ 25,115 4.27% $ 24,738 4.12%
--------------------------- ------------ --------- ------- ------------ --------- -------

Interest Income and Rate
Earned(1) $ 27,907 4.87% $ 28,303 4.87%

Interest Expense and Rate
Paid(2) 2,792 0.49% 3,565 0.61%
--------------------------- ------------ --------- ------- ------------ --------- -------

Net Interest Margin $ 25,115 4.38% $ 24,738 4.26%
--------------------------- ------------ --------- ------- ------------ --------- -------

June 2011 YTD June 2010 YTD
-------------------------------- --------------------------------

Average Average
Average Average
(Dollars in thousands) Balance Interest Rate Balance Interest Rate
---------------------------- ------------ --------- ------- ------------ --------- -------

ASSETS:
Loans, Net of Unearned
Interest $ 1,717,267 48,566 5.76% $ 1,863,749 53,975 5.84%

Investment Securities
Taxable Investment
Securities 237,857 1,676 1.41% 99,954 1,208 2.42%

Tax-Exempt Investment
Securities 67,558 634 1.88% 94,713 1,377 2.91%
---------------------------- ------------ --------- ------- ------------ --------- -------

Total Investment Securities 305,415 2,310 1.52% 194,667 2,585 2.66%

Funds Sold 246,030 316 0.23% 285,331 348 0.24%
---------------------------- ------------ --------- ------- ------------ --------- -------

Total Earning Assets 2,268,712 $ 51,192 4.55% $ 56,908 4.90%
--------- ------- 2,343,747 --------- -------

Cash and Due From Banks 49,194 52,795
Allowance for Loan Losses (33,903) (42,820)

Other Assets 346,581 334,677
---------------------------- ------------ ------------

Total Assets $ 2,630,584 $ 2,688,399
---------------------------- ------------ ------------

LIABILITIES:
Interest Bearing Deposits
NOW Accounts $ 784,806 $ 520 0.13% $ 873,200 $ 784 0.18%
Money Market Accounts 281,503 267 0.19% 353,958 1,020 0.58%
Savings Accounts 148,633 34 0.05% 128,856 32 0.05%

Time Deposits 349,589 1,520 0.88% 434,321 3,465 1.61%
---------------------------- ------------ --------- ------- ------------ --------- -------
Total Interest Bearing
Deposits 1,564,531 2,341 0.30% 1,790,335 5,301 0.60%

Short-Term Borrowings 81,982 221 0.54% 26,662 29 0.21%
Subordinated Notes Payable 62,887 683 2.16% 62,887 1,290 4.08%

Other Long-Term Borrowings 49,995 986 3.98% 51,350 1,077 4.23%
---------------------------- ------------ --------- ------- ------------ --------- -------

Total Interest Bearing
Liabilities 1,759,395 $ 4,231 0.48% $ 7,697 0.80%
--------- ------- 1,931,234 --------- -------

Noninterest Bearing Deposits 551,759 451,094

Other Liabilities 57,440 39,870
---------------------------- ------------ ------------

Total Liabilities 2,368,594 2,422,198

SHAREOWNERS' EQUITY: $ 261,990 $ 266,201
---------------------------- ------------ ------------

Total Liabilities and
Shareowners' Equity $ 2,630,584 $ 2,688,399
---------------------------- ------------ ------------

Interest Rate Spread $ 46,961 4.07% $ 49,211 4.10%
---------------------------- ------------ --------- ------- ------------ --------- -------

Interest Income and Rate
Earned(1) $ 51,192 4.55% $ 56,908 4.90%

Interest Expense and Rate
Paid(2) 4,231 0.38% 7,697 0.66%
---------------------------- ------------ --------- ------- ------------ --------- -------

Net Interest Margin $ 46,961 4.17% $ 49,211 4.24%
---------------------------- ------------ --------- ------- ------------ --------- -------

(1) Interest and average rates are calculated on a tax-equivalent basis using the 35% Federal
tax rate.
(2) Rate calculated based on average earning assets.


Comments are posted from viewers like you and do not always reflect the views of this station.
powered by Disqus
WCTV 1801 Halstead Blvd. Tallahassee, FL 32309
Gray Television, Inc. - Copyright © 2002-2014 - Designed by Gray Digital Media - Powered by Clickability 126173068 - wctv.tv/a?a=126173068