Capital City Bank Group, Inc. Reports Second Quarter 2016 Results

TALLAHASSEE, Fla., July 26, 2016 (GLOBE NEWSWIRE) -- Capital City Bank Group, Inc. CCBG today reported net income of $3.9 million, or $0.22 per diluted share for the second quarter of 2016 compared to net income of $1.6 million, or $0.10 per diluted share for the first quarter of 2016, and $3.8 million, or $0.22 per diluted share, for the second quarter of 2015.  For the first six months of 2016, net income totaled $5.6 million, or $0.32 per diluted share, compared to net income of $4.8 million, or $0.28 per diluted share for the same period in 2015.       

HIGHLIGHTS

• Continued broad based loan growth of 1.6% sequentially and 4.0% over prior year
• Continued growth in net interest income of 0.9% sequentially and 2.9% year to date
• Significant reduction in loan loss provision reflective of strong loan recoveries
• Strong reduction in NPAs and classified assets – down sequentially by 14% and 11%, respectively
• $10 million trust preferred securities ("TRUPs") repurchased at a discount added $2.5 million pre-tax ($0.09 per share) to 2^nd quarter earnings
• Repurchased 432,000 shares of common stock during second quarter of 2016

"Our second quarter performance continued to show meaningful progress year over year," said William G. Smith, Jr., Chairman, President and CEO.  "A significant reduction in nonperforming assets, high level of loan loss recoveries and gain on the repurchase of $10 million in TRUPs all helped to headline the quarter.  Despite a challenging environment, our strategies continue to produce positive results.  Average loans grew at an annual pace of over 6%, and we remain dedicated to reducing our structural expenses and enhancing existing revenues while identifying new business opportunities.  If done properly and prudently, it can take time for these strategies to produce the desired outcome, but we are making progress and remain steadfast in our decision to value long-term profitability over short-term gains."

Compared to the first quarter of 2016, performance reflects higher net interest income of $0.2 million, a $2.5 million increase in noninterest income, lower noninterest expense of $0.2 million, and a $0.6 million reduction in the loan loss provision, partially offset by a $1.2 million increase in income taxes.

Compared to the second quarter of 2015, the increase in earnings reflects higher net interest income of $0.4 million, a $0.4 million increase in noninterest income, and a $0.5 million reduction in the loan loss provision, partially offset by a $0.3 million increase in noninterest expense and $0.9 million increase in income taxes.

The increase in earnings for the first six months of 2016 versus the comparable period in 2015 was attributable to higher net interest income of $1.1 million, a $0.3 million increase in noninterest income, lower noninterest expense of $0.2 million, and a $0.3 million reduction in the loan loss provision, partially offset by higher income taxes of $1.1 million.

The Return on Average Assets was 0.57% and the Return on Average Equity was 5.65% for the second quarter of 2016.  These metrics were 0.24% and 2.39% for the first quarter of 2016, respectively, and 0.58% and 5.62% for the second quarter of 2015, respectively.  For the first six months of 2016, the Return on Average Assets was 0.41% and the Return on Average Equity was 4.03% compared to 0.37% and 3.54%, respectively, for the first half of 2015.

Discussion of Operating Results

Tax equivalent net interest income for the second quarter of 2016 was $19.6 million compared to $19.4 million for the first quarter of 2016 and $19.1 million for the second quarter of 2015.  The increase in tax equivalent net interest income compared to the first quarter of 2016 reflects a positive shift in earning asset mix due to growth in the loan and investment portfolios, partially offset by a decline in overnight funds.  The increase in tax equivalent net interest income compared to the second quarter of 2015 reflects growth in the investment portfolio and a higher rate paid on overnight funds, partially offset by a decline in loan fees.  For the six months ended June 30, 2016, tax equivalent net interest income totaled $39.0 million compared to $37.7 million for the comparable period in 2015.  The year over year increase was driven by one additional calendar day, and growth in the loan and investment portfolios.

Although the low interest rate environment continues to put downward pressure on our net interest income, we have been successful in increasing our net interest income quarter-over-quarter.  Additionally, aggressive lending competition in all markets has impacted the pricing for loans. Low rates and competition, collectively, continue to adversely impact our loan yields.  Various loan strategies, which align with our overall risk appetite, continue to be reviewed and implemented to enhance our performance.

Our net interest margin for the second quarter of 2016 was 3.22%, an increase of two basis points over the first quarter of 2016 and a decrease of seven basis points from the second quarter of 2015.  The increase in the margin compared to the first quarter of 2016 was primarily attributable to growth in our loan and investment portfolios.  The decrease in the margin compared to the second quarter of 2015 was primarily attributable to lower loan yields.  For the six months ended June 30, 2016, the net interest margin declined by seven basis points to 3.21% compared to the same period of 2015 for reasons mentioned above. 

The provision for loan losses for the second quarter of 2016 was negative $0.1 million reflecting a higher level of loan recoveries as well as continued improvement in credit quality.  This compares to a $0.5 million provision expense for the first quarter of 2016 and $0.4 million provision expense for the second quarter of 2015.  For the first half of 2016, the loan loss provision totaled $0.4 million compared to $0.7 million for the same period of 2015.  The decrease in the year-to-date provision reflects continued favorable problem loan migration and improvement in key credit metrics, partially offset by growth in the loan portfolio.  We realized net loan recoveries of $0.2 million (consisting of recoveries of $1.3 million, less gross charge-offs of $1.1 million) for the second quarter of 2016.  This compares to net charge-offs of $0.8 million, or 0.21% (annualized) of average loans for the first quarter of 2016 and $1.2 million, or 0.33% (annualized), for the second quarter of 2015.  For the first half of 2016, net charge-offs totaled $0.6 million, or 0.08% (annualized) of average loans compared to $3.0 million, or 0.41% (annualized), for the same period of 2015.  At quarter-end, the allowance for loan losses of $13.7 million was 0.89% of outstanding loans (net of overdrafts) and provided coverage of 167% of nonperforming loans compared to 0.90% and 150%, respectively, at March 31, 2016 and 0.93% and 135%, respectively, at December 31, 2015.

Noninterest income for the second quarter of 2016 totaled $15.2 million, an increase of $2.5 million, or 20.0%, over the first quarter of 2016 attributable to a $2.5 million gain from the repurchase of our TRUPs.  This transaction is further detailed in our Current Report on Form 8-K filed with the SEC on April 18, 2016.  Compared to the second quarter of 2015, noninterest income increased $0.4 million, or 2.8%, primarily attributable to higher other income of $0.8 million that was partially offset by lower deposit fees of $0.4 million.  The increase in other income reflects the $2.5 million gain from the repurchase of TRUPs partially offset by lower bank owned life insurance ("BOLI") income of $1.7 million.  For the first half of 2016, noninterest income totaled $27.9 million, a $0.3 million, or 0.9%, increase over the same period of 2015, primarily attributable to higher other income of $0.9 million and mortgage banking fees of $0.1 million, partially offset by lower deposit fees of $0.5 million and wealth management fees of $0.3 million.  The variance in other income was attributable to the same factors noted above for the second quarter.  Continued strong residential home sales activity in our markets drove the improvement in mortgage banking fees.  The reduction in deposit fees reflects lower overdraft service fees attributable to a reduction in accounts using this service as well as lower utilization by existing users.  The reduction in wealth management fees generally reflects lower trading volume by our retail brokerage clients.

Noninterest expense for the second quarter of 2016 totaled $28.7 million, a decrease of $0.2 million, or 0.8%, from the first quarter of 2016 primarily attributable to lower other real estate owned ("OREO") expense of $0.4 million reflective of lower property valuation adjustments and carrying costs. Compared to the second quarter of 2015, noninterest expense increased by $0.3 million, or 0.9%, due to higher occupancy costs, primarily attributable to higher maintenance costs for building and furniture/equipment and to a lesser extent higher depreciation expense from technology investments in our banking offices.  For the first six months of 2016, noninterest expense totaled $57.6 million, a decrease of $0.2 million, or 0.3%, from the same period of 2015 attributable to lower compensation expense of $0.6 million that was partially offset by higher occupancy expense of $0.4 million.  A higher level of deferred loan cost (which reduces salary expense), partially offset by higher pension plan expense drove the reduction in compensation.  The variance in occupancy expense was attributable to the same aforementioned factors noted above for the second quarter.

We realized income tax expense of $2.1 million (34% effective rate) for the second quarter of 2016 compared to $0.9 million (34% effective rate) for the first quarter of 2016 and $1.2 million (23% effective rate) for the second quarter of 2015.  For the first six months of 2016, income tax expense totaled $2.9 million (34% effective rate) compared to $1.8 million (27% effective rate) for the comparable period of 2015.  The receipt of $1.7 million in BOLI proceeds in the second quarter of 2015 was tax-free, therefore income tax expense for the three and six-months of 2015 was favorably impacted.

Discussion of Financial Condition

Average earning assets were $2.448 billion for the second quarter of 2016, an increase of $7.1 million, or 0.3%, over the first quarter of 2016, and an increase of $94.0 million, or 4.0%, over the fourth quarter of 2015.  The change in earning assets over the first quarter of 2016 reflects growth in both the loan and investment portfolios, which was funded by a reduction in our funds sold position and growth in nonmaturity deposits, primarily noninterest bearing.  The increase compared to the fourth quarter of 2015 reflects growth in the loan and investment portfolios, funded primarily by increases in noninterest bearing, NOW, and savings accounts. 

We maintained an average net overnight funds (deposits with banks plus fed funds sold less fed funds purchased) sold position of $254.6 million during the second quarter of 2016 compared to an average net overnight funds sold position of $286.2 million in the first quarter of 2016 and $222.8 million in the fourth quarter of 2015. The decrease in net overnight funds compared to the first quarter of 2016 reflects an increase in both the investment and loan portfolios. The decline in interest bearing liabilities was nearly offset by the increase in noninterest bearing deposits. The increase in net overnight funds compared to the fourth quarter of 2015 primarily reflects higher levels of all deposit products other than money market accounts and certificates of deposit, partially offset by growth in both the investment and loan portfolios.

Average loans increased $24.3 million, or 1.6% when compared to the first quarter of 2016, and have grown $39.3 million, or 2.6% when compared to the fourth quarter of 2015. The increase compared to the prior quarter reflects growth primarily in institutional, commercial, and consumer loans. Growth over the fourth quarter of 2015 was experienced in all loan products, with the exception of commercial mortgages. 

Without compromising our credit standards or taking on inordinate interest rate risk, we continue to make minor modifications on some of our lending programs to try to mitigate the impact that consumer and business deleveraging is having on our portfolio.  These programs, coupled with economic improvements in our anchor markets, have helped to increase overall production. Nonperforming assets (nonaccrual loans and OREO) totaled $22.8 million at the end of the second quarter of 2016, a decrease of $3.7 million, or 14%, from the first quarter of 2016 and $6.8 million, or 23%, from the fourth quarter of 2015.  Nonaccrual loans totaled $8.2 million at the end of the second quarter of 2016, a decrease of $0.9 million from the first quarter of 2016 and $2.1 million from the fourth quarter of 2015.  Nonaccrual loan additions totaled $2.5 million in the second quarter of 2016 and $6.3 million for the first six months of 2016, which compares to $10.3 million for the same six month period of 2015.  The balance of OREO totaled $14.6 million at the end of the second quarter of 2016, a decrease of $2.8 million and $4.7 million, respectively, from the first quarter of 2016 and fourth quarter of 2015.  For the second quarter of 2016, we added properties totaling $1.2 million, sold properties totaling $3.3 million, and recorded valuation adjustments totaling $0.7 million.  For the first six months of 2016, we added properties totaling $2.4 million, sold properties totaling $5.6 million, and recorded valuation adjustments totaling $1.5 million.  Nonperforming assets represented 0.83% of total assets at June 30, 2016 compared to 0.95% at March 31, 2016 and 1.06% at December 31, 2015.

Average total deposits were $2.277 billion for the second quarter of 2016, an increase of $18.0 million, or 0.8%, over the first quarter of 2016, and an increase of $101.8 million, or 4.7% over the fourth quarter of 2015. The increase in deposits when compared to the first quarter of 2016 reflects growth in all deposit products except public NOW deposits and certificates of deposit.  Compared to the fourth quarter of 2015, growth was experienced in all product types except money market accounts and certificates of deposit.  The seasonal inflows of public funds most likely peaked in the first quarter of 2016, and are expected to decline into the fourth quarter of 2016.

Deposit levels remain strong, as the seasonal decline in public NOW accounts was more than offset by increases in all other nonmaturity deposits during the quarter.  Average core deposits continue to experience growth in this low rate environment.  Competitive rates continue to be monitored, as a prudent pricing discipline remains the key to managing our mix of deposits.

Compared to the first quarter of 2016, average borrowings decreased $22.9 million due to a decline in repurchase agreements and the retirement of $10 million in subordinated debt associated with the TRUPs repurchase.  Compared to the fourth quarter of 2015, average borrowings decreased by $24.9 million due to the reasons stated above.

Equity capital was $274.8 million as of June 30, 2016, compared to $276.8 million as of March 31, 2016 and $274.4 million as of December 31, 2015.  Our leverage ratio was 9.88%, 10.34%, and 10.65%, respectively, for these periods.  Further, as of June 30, 2016, our risk-adjusted capital ratio was 16.44% compared to 17.20% and 17.25% at March 31, 2016 and December 31, 2015, respectively.  Our common equity tier 1 ratio was 12.65% as of June 30, 2016, compared to 12.82% as of March 31, 2016 and 12.84% as of December 31, 2015.  All of our capital ratios significantly exceed the threshold to be designated as "well-capitalized" under the Basel III capital standards.  The reduction in our regulatory capital ratios in the second quarter of 2016 reflects the repurchase of common stock (~ 38 basis point impact) and the repurchase of TRUPs (~ 50 basis point impact).  During the second quarter of 2016 we repurchased approximately 432,000 shares of our common stock at an average price of $14.50 per share.

About Capital City Bank Group, Inc.

Capital City Bank Group, Inc. CCBG is one of the largest publicly traded financial holding companies headquartered in Florida and has approximately $2.8 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, data processing and securities brokerage services.  Our bank subsidiary, Capital City Bank, was founded in 1895 and now has 61 banking offices and 71 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: the accuracy of the Company's 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 the Company's computer systems or fraud related to debit card products; changes in consumer spending and savings habits; the Company's growth and profitability; the strength of the U.S. economy and the local economies where the Company conducts operations; 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; 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 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, 2015, 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.

CAPITAL CITY BANK GROUP, INC.
EARNINGS HIGHLIGHTS
Unaudited
		Three Months Ended												Six Months Ended
(Dollars in thousands, except per share data)		Jun 30, 2016				Mar 31, 2016				Jun 30, 2015				Jun 30, 2016				Jun 30, 2015
EARNINGS
Net Income	$		3,930		$		1,647		$		3,845		$		5,577		$		4,831
Net Income Per Common Share	$		0.22		$		0.10		$		0.22		$		0.32		$		0.28
PERFORMANCE
Return on Average Assets			0.57	%			0.24	%			0.58	%			0.41	%			0.37	%
Return on Average Equity			5.65	%			2.39	%			5.62	%			4.03	%			3.54	%
Net Interest Margin			3.22	%			3.20	%			3.29	%			3.21	%			3.28	%
Noninterest Income as % of Operating Revenue			43.99	%			39.76	%			43.80	%			41.96	%			42.44	%
Efficiency Ratio			82.40	%			90.13	%			83.85	%			86.11	%			88.46	%
CAPITAL ADEQUACY
Tier 1 Capital Ratio			15.63	%			16.39	%			15.83	%			15.63	%			15.83	%
Total Capital Ratio			16.44	%			17.20	%			16.72	%			16.44	%			16.72	%
Tangible Common Equity Ratio			7.08	%			7.09	%			7.29	%			7.08	%			7.29	%
Leverage Ratio			9.88	%			10.34	%			10.53	%			9.88	%			10.53	%
Common Equity Tier 1 Ratio			12.65	%			12.82	%			12.34	%			12.65	%			12.34	%
Equity to Assets			9.93	%			9.91	%			10.25	%			9.93	%			10.25	%
ASSET QUALITY
Allowance as % of Non-Performing Loans			166.50	%			150.44	%			99.46	%			166.50	%			99.46	%
Allowance as a % of Loans			0.89	%			0.90	%			1.03	%			0.89	%			1.03	%
Net Charge-Offs as % of Average Loans			(0.04	)%			0.21	%			0.33	%			0.08	%			0.41	%
Nonperforming Assets as % of Loans and ORE			1.48	%			1.73	%			3.00	%			1.48	%			3.00	%
Nonperforming Assets as % of Total Assets			0.83	%			0.95	%			1.71	%			0.83	%			1.71	%
STOCK PERFORMANCE
High	$		15.96		$		15.88		$		16.32		$		15.96		$		16.33
Low			13.16				12.83				13.94				12.83				13.16
Close			13.92				14.59				15.27				13.92				15.27
Average Daily Trading Volume	$		20,192		$		22,720		$		33,514		$		21,426		$		24,435

 

CAPITAL CITY BANK GROUP, INC.
CONSOLIDATED STATEMENT OF FINANCIAL CONDITION
Unaudited
			2016								2015
(Dollars in thousands)		Second Quarter				First Quarter				Fourth Quarter				Third Quarter				Second Quarter
ASSETS
Cash and Due From Banks	$		51,766		$		45,914		$		51,288		$		42,917		$		61,484
Funds Sold and Interest Bearing Deposits			220,719				304,908				327,617				167,787				185,572
Total Cash and Cash Equivalents			272,485				350,822				378,905				210,704				247,056
Investment Securities Available for Sale			485,848				462,444				451,028				444,071				433,688
Investment Securities Held to Maturity			204,474				187,079				187,892				193,964				201,805
Total Investment Securities			690,322				649,523				638,920				638,035				635,493
Loans Held for Sale			12,046				10,475				11,632				10,960				10,991
Loans, Net of Unearned Interest
Commercial, Financial, & Agricultural			207,105				183,681				179,816				169,588				151,116
Real Estate - Construction			46,930				42,538				46,484				49,475				44,216
Real Estate - Commercial			485,329				503,259				499,813				491,734				510,962
Real Estate - Residential			280,015				285,772				285,748				280,690				284,333
Real Estate - Home Equity			235,394				234,128				233,901				232,254				230,388
Consumer			252,347				245,197				240,434				238,884				238,599
Other Loans			11,177				10,297				4,837				10,094				12,048
Overdrafts			2,177				1,963				1,242				2,464				2,603
Total Loans, Net of Unearned Interest			1,520,474				1,506,835				1,492,275				1,475,183				1,474,265
Allowance for Loan Losses			(13,677	)			(13,613	)			(13,953	)			(14,737	)			(15,236	)
Loans, Net			1,506,797				1,493,222				1,478,322				1,460,446				1,459,029
Premises and Equipment, Net			97,313				98,029				98,819				98,218				99,108
Goodwill			84,811				84,811				84,811				84,811				84,811
Other Real Estate Owned			14,622				17,450				19,290				25,219				30,167
Other Assets			89,240				87,854				87,161				86,701				87,489
Total Other Assets			285,986				288,144				290,081				294,949				301,575
Total Assets	$		2,767,636		$		2,792,186		$		2,797,860		$		2,615,094		$		2,654,144
LIABILITIES
Deposits:
Noninterest Bearing Deposits	$		798,219		$		790,040		$		758,283		$		720,824		$		723,866
NOW Accounts			804,263				786,432				848,330				688,491				734,237
Money Market Accounts			259,813				254,682				248,367				261,050				264,475
Regular Savings Accounts			294,432				286,807				269,162				262,843				255,185
Certificates of Deposit			168,079				173,447				178,707				181,775				186,881
Total Deposits			2,324,806				2,291,408				2,302,849				2,114,983				2,164,644
Short-Term Borrowings			9,609				62,922				61,058				65,355				53,698
Subordinated Notes Payable			52,887				62,887				62,887				62,887				62,887
Other Long-Term Borrowings			26,401				27,062				28,265				29,042				29,733
Other Liabilities			79,109				71,074				68,449				69,168				71,144
Total Liabilities			2,492,812				2,515,353				2,523,508				2,341,435				2,382,106
SHAREOWNERS' EQUITY
Common Stock			168				172				172				171				172
Additional Paid-In Capital			32,855				38,671				38,256				37,738				37,625
Retained Earnings			262,380				259,139				258,181				256,265				255,096
Accumulated Other Comprehensive Loss, Net of Tax			(20,579	)			(21,149	)			(22,257	)			(20,515	)			(20,855	)
Total Shareowners' Equity			274,824				276,833				274,352				273,659				272,038
Total Liabilities and Shareowners' Equity	$		2,767,636		$		2,792,186		$		2,797,860		$		2,615,094		$		2,654,144
OTHER BALANCE SHEET DATA
Earning Assets	$		2,443,561		$		2,471,741		$		2,470,445		$		2,291,966		$		2,306,322
Interest Bearing Liabilities			1,615,484				1,654,239				1,696,776				1,551,443				1,587,096
Book Value Per Diluted Share	$		16.31		$		16.04		$		15.93		$		15.91		$		15.80
Tangible Book Value Per Diluted Share			11.27				11.13				11.00				10.98				10.87
Actual Basic Shares Outstanding			16,804				17,222				17,157				17,144				17,154
Actual Diluted Shares Outstanding			16,855				17,254				17,226				17,223				17,216

 

CAPITAL CITY BANK GROUP, INC.
CONSOLIDATED STATEMENT OF OPERATIONS
Unaudited
														Six Months Ended
		2016						2015						June 30,
(Dollars in thousands, except per share data)		Second Quarter				First Quarter		Fourth Quarter		Third Quarter		Second Quarter		2016		2015
INTEREST INCOME
Interest and Fees on Loans	$		18,105		$	18,045	$	18,861	$	18,214	$	18,231	$	36,150	$	36,094
Investment Securities			1,751			1,637		1,572		1,540		1,451		3,388		2,745
Funds Sold			318			362		169		123		151		680		340
Total Interest Income			20,174			20,044		20,602		19,877		19,833		40,218		39,179
INTEREST EXPENSE
Deposits			211			221		219		220		259		432		505
Short-Term Borrowings			38			10		9		14		15		48		36
Subordinated Notes Payable			343			387		354		344		338		730		670
Other Long-Term Borrowings			206			216		226		233		237		422		477
Total Interest Expense			798			834		808		811		849		1,632		1,688
Net Interest Income			19,376			19,210		19,794		19,066		18,984		38,586		37,491
Provision for Loan Losses			(97	)		452		513		413		375		355		668
Net Interest Income after Provision for Loan Losses			19,473			18,758		19,281		18,653		18,609		38,231		36,823
NONINTEREST INCOME
Deposit Fees			5,321			5,400		5,664		5,721		5,682		10,721		11,223
Bank Card Fees			2,855			2,853		2,866		2,826		2,844		5,708		5,586
Wealth Management Fees			1,690			1,792		1,893		1,818		1,776		3,482		3,822
Mortgage Banking Fees			1,267			1,030		1,043		1,306		1,203		2,297		2,190
Data Processing Fees			335			347		335		400		364		682		737
Other			3,747			1,255		1,420		1,157		2,925		5,002		4,084
Total Noninterest Income			15,215			12,677		13,221		13,228		14,794		27,892		27,642
NONINTEREST EXPENSE
Compensation			16,051			16,241		15,833		16,653		16,404		32,292		32,928
Occupancy, Net			4,584			4,459		4,638		4,446		4,258		9,043		8,654
Other Real Estate			1,060			1,425		1,241		1,302		931		2,485		2,428
Other			7,007			6,805		6,568		6,763		6,846		13,812		13,819
Total Noninterest Expense			28,702			28,930		28,280		29,164		28,439		57,632		57,829
OPERATING PROFIT			5,986			2,505		4,222		2,717		4,964		8,491		6,636
Income Tax Expense			2,056			858		1,620		1,034		1,119		2,914		1,805
NET INCOME	$		3,930		$	1,647	$	2,602	$	1,683	$	3,845	$	5,577	$	4,831
PER SHARE DATA
Basic Income	$		0.22		$	0.10	$	0.16	$	0.09	$	0.22	$	0.32	$	0.28
Diluted Income	$		0.22		$	0.10	$	0.16	$	0.09	$	0.22	$	0.32	$	0.28
Cash Dividend	$		0.04		$	0.04	$	0.04	$	0.03	$	0.03	$	0.08	$	0.06
AVERAGE SHARES
Basic			17,144			17,202		17,145		17,150		17,296		17,173		17,402
Diluted			17,196			17,235		17,214		17,229		17,358		17,215		17,456

 

CAPITAL CITY BANK GROUP, INC.
ALLOWANCE FOR LOAN LOSSES
AND RISK ELEMENT ASSETS
Unaudited
																						Six Months Ended
			2016				2016				2015				2015				2015			June 30,
(Dollars in thousands, except per share data)		Second Quarter				First Quarter				Fourth Quarter				Third Quarter				Second Quarter					2016				2015
ALLOWANCE FOR LOAN LOSSES
Balance at Beginning of Period	$		13,613		$		13,953		$		14,737		$		15,236		$		16,090		$		13,953		$		17,539
Provision for Loan Losses			(97	)			452				513				413				375				355				668
Net Charge-Offs			(161	)			792				1,297				912				1,229				631				2,971
Balance at End of Period	$		13,677		$		13,613		$		13,953		$		14,737		$		15,236		$		13,677		$		15,236
As a % of Loans			0.89	%			0.90	%			0.93	%			0.99	%			1.03	%			0.89	%			1.03	%
As a % of Nonperforming Loans			166.50	%			150.44	%			135.40	%			112.17	%			99.46	%			166.50	%			99.46	%
CHARGE-OFFS
Commercial, Financial and Agricultural	$		304		$		37		$		135		$		365		$		239		$		341		$		529
Real Estate - Construction			-				-				-				-				-				-				-
Real Estate - Commercial			-				274				87				(26	)			285				274				1,189
Real Estate - Residential			205				478				587				476				484				683				789
Real Estate - Home Equity			146				215				397				370				454				361				636
Consumer			438				439				656				318				351				877				927
Total Charge-Offs	$		1,093		$		1,443		$		1,862		$		1,503		$		1,813		$		2,536		$		4,070
RECOVERIES
Commercial, Financial and Agricultural	$		49		$		39		$		57		$		45		$		82		$		88		$		137
Real Estate - Construction			-				-				-				-				-				-				-
Real Estate - Commercial			237				81				13				86				54				318				84
Real Estate - Residential			579				236				264				193				200				815				248
Real Estate - Home Equity			81				59				37				42				33				140				57
Consumer			308				236				194				225				215				544				573
Total Recoveries	$		1,254		$		651		$		565		$		591		$		584		$		1,905		$		1,099
NET CHARGE-OFFS	$		(161	)	$		792		$		1,297		$		912		$		1,229		$		631		$		2,971
Net Charge-Offs as a % of Average Loans(1)			(0.04	)%			0.21	%			0.34	%			0.24	%			0.33	%			0.08	%			0.41	%
RISK ELEMENT ASSETS
Nonaccruing Loans	$		8,214		$		9,049		$		10,305		$		13,138		$		15,320
Other Real Estate Owned			14,622				17,450				19,290				25,219				30,167
Total Nonperforming Assets	$		22,836		$		26,499		$		29,595		$		38,357		$		45,487
Past Due Loans 30-89 Days	$		3,872		$		3,599		$		5,775		$		4,335		$		5,858
Past Due Loans 90 Days or More			-				-				-				-				-
Classified Loans			45,058				49,780				53,551				61,411				69,152
Performing Troubled Debt Restructuring's	$		35,526		$		36,700		$		35,634		$		35,961		$		41,632
Nonperforming Loans as a % of Loans			0.54	%			0.60	%			0.69	%			0.88	%			1.03	%
Nonperforming Assets as a % of
Loans and Other Real Estate			1.48	%			1.73	%			1.94	%			2.54	%			3.00	%
Nonperforming Assets as a % of Total Assets			0.83	%			0.95	%			1.06	%			1.47	%			1.71	%
(1) Annualized

 

CAPITAL CITY BANK GROUP, INC.
AVERAGE BALANCE AND INTEREST RATES(1)
Unaudited
		Second Quarter 2016									First Quarter 2016									Fourth Quarter 2015									Third Quarter 2015									Second Quarter 2015									Jun 2016 YTD									Jun 2015 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	$		1,531,777			18,233		4.79	%	$		1,507,508			18,141		4.84	%	$		1,492,521			18,952		5.04	%	$		1,483,657			18,290		4.89	%	$		1,473,954			18,285		4.98	%	$		1,519,642			36,374		4.81	%	$		1,461,356			36,194		4.99	%
Investment Securities
Taxable Investment Securities			571,343			1,539		1.08				552,092			1,420		1.03				544,542			1,365		0.99				543,550			1,347		0.98				540,735			1,313		0.97				561,718			2,959		1.03				516,321			2,511		0.95
Tax-Exempt Investment Securities			90,030			325		1.44				94,951			332		1.40				93,838			328		1.40				92,685			304		1.31				76,191			219		1.15				92,490			657		1.42				70,043			373		1.06
Total Investment Securities			661,373			1,864		1.13				647,043			1,752		1.09				638,380			1,693		1.05				636,235			1,651		1.03				616,926			1,532		0.99				654,208			3,616		1.11				586,364			2,884		0.99
Funds Sold			254,627			318		0.50				286,167			362		0.51				222,828			169		0.30				190,931			123		0.26				237,132			151		0.26				270,397			680		0.51				269,588			340		0.25
Total Earning Assets			2,447,777		$	20,415		3.35	%			2,440,718		$	20,255		3.34	%			2,353,729		$	20,814		3.51	%			2,310,823		$	20,064		3.45	%			2,328,012		$	19,968		3.44	%			2,444,247		$	40,670		3.35	%			2,317,308		$	39,418		3.43	%
Cash and Due From Banks			46,605									47,834									45,875									45,872									52,473									47,220									50,555
Allowance for Loan Losses			(14,254	)								(13,999	)								(14,726	)								(15,403	)								(16,070	)								(14,127	)								(16,702	)
Other Assets			287,726									289,193									293,336									298,400									306,286									288,460									308,526
Total Assets	$		2,767,854							$		2,763,746							$		2,678,214							$		2,639,692							$		2,670,701							$		2,765,800							$		2,659,687
LIABILITIES:
Interest Bearing Deposits
NOW Accounts	$		762,667		$	67		0.04	%	$		798,996		$	69		0.03	%	$		725,538		$	62		0.03	%	$		709,130		$	60		0.03	%	$		761,388		$	64		0.03	%	$		780,832		$	136		0.03	%	$		777,757		$	132		0.03	%
Money Market Accounts			257,000			30		0.05				252,446			29		0.05				259,091			30		0.05				261,749			31		0.05				256,265			32		0.05				254,723			59		0.05				255,378			73		0.06
Savings Accounts			291,210			36		0.05				277,745			34		0.05				266,468			33		0.05				258,752			32		0.05				253,808			31		0.05				284,477			70		0.05				248,064			61		0.05
Time Deposits			170,837			78		0.19				177,057			89		0.20				180,124			94		0.21				183,976			97		0.21				189,213			132		0.28				173,947			167		0.19				191,919			239		0.25
Total Interest Bearing Deposits			1,481,714			211		0.06	%			1,506,244			221		0.06	%			1,431,221			219		0.06	%			1,413,607			220		0.06	%			1,460,674			259		0.07	%			1,493,979			432		0.06	%			1,473,118			505		0.07	%
Short-Term Borrowings			53,691			38		0.28	%			66,938			10		0.06	%			68,093			9		0.06	%			61,548			14		0.09	%			54,237			15		0.11	%			60,315			48		0.16	%			52,035			36		0.14	%
Subordinated Notes Payable			54,316			343		2.50				62,887			387		2.43				62,887			354		2.20				62,887			344		2.14				62,887			338		2.13				58,601			730		2.47				62,887			670		2.12
Other Long-Term Borrowings			26,721			206		3.11				27,769			216		3.12				28,618			226		3.14				29,383			233		3.15				30,067			237		3.16				27,245			422		3.11				30,407			477		3.16
Total Interest Bearing Liabilities			1,616,442		$	798		0.20	%			1,663,838		$	834		0.20	%			1,590,819		$	808		0.20	%			1,567,425		$	811		0.21	%			1,607,865		$	849		0.21	%			1,640,140		$	1,632		0.20	%			1,618,447		$	1,688		0.21	%
Noninterest Bearing Deposits			794,839									752,356									743,497									723,826									717,725									773,597									697,811
Other Liabilities			77,041									70,088									68,005									73,485									70,690									73,565									68,569
Total Liabilities			2,488,322									2,486,282									2,402,321									2,364,736									2,396,280									2,487,302									2,384,827
SHAREOWNERS' EQUITY:			279,532									277,464									275,893									274,956									274,421									278,498									274,860
Total Liabilities and Shareowners' Equity	$		2,767,854							$		2,763,746							$		2,678,214							$		2,639,692							$		2,670,701							$		2,765,800							$		2,659,687
Interest Rate Spread					$	19,617		3.15	%					$	19,421		3.14	%					$	20,006		3.31	%					$	19,253		3.24	%					$	19,119		3.23	%					$	39,038		3.14	%					$	37,730		3.22	%
Interest Income and Rate Earned(1)						20,415		3.35							20,255		3.34							20,814		3.51							20,064		3.45							19,968		3.44							40,670		3.35							39,418		3.43
Interest Expense and Rate Paid(2)						798		0.13							834		0.14							808		0.14							811		0.14							849		0.15							1,632		0.13							1,688		0.15
Net Interest Margin					$	19,617		3.22	%					$	19,421		3.20	%					$	20,006		3.37	%					$	19,253		3.31	%					$	19,119		3.29	%					$	39,038		3.21	%					$	37,730		3.28	%
(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.