TALLAHASSEE, Fla., April 22, 2008 (PRIME NEWSWIRE) -- Capital City Bank Group, Inc. (Nasdaq:CCBG) today reported net income for the first quarter of 2008 totaling $7.3 million ($0.42 per diluted share) compared to $7.7 million ($0.44 per diluted share) in the fourth quarter of 2007 and $7.0 million ($0.38 per diluted share) for the first quarter of 2007. Earnings for the first quarter include a $2.4 million pre-tax gain from the redemption of Visa, Inc. shares related to their initial public offering, the reversal of $1.1 million (pre-tax) in litigation reserves recorded in the previous quarter related to certain Visa litigation, which are referred to as "Covered" litigation, and an increase to the reserve for loan losses of $2.2 million.
"Given the current operating environment and economic conditions, our earnings have held up well over the past few quarters as we work our way through this economic cycle," said William G. Smith, Jr., Chairman, President, and CEO of Capital City Bank Group, Inc. "Our markets have not been hit as hard as other areas of Florida, nor have our markets experienced as steep and rapid a decline in the leading local economic indicators, but nevertheless, the economic activity in our markets has softened and we anticipate this will persist through 2008.
"As evidenced by our increased nonperforming assets and provisioning for credit losses, we continue to recognize that credit quality and risk assessment are the most important issues to focus upon. Higher levels of impaired loans clearly impede revenue production and ultimately have an adverse impact on the net interest margin, although underlying credit quality across the various loan portfolios is fundamentally sound. Our main challenge will be to intensively manage our problem loans towards resolution as quickly as the market will allow.
"While new loan growth has not been exceptional, business is steady, and our markets offer a variety of quality lending opportunities and pipelines remain reasonably full.
"On the deposit side, during the quarter there was a noteworthy influx of over $155 million in average negotiated deposits, primarily public funds. These new deposits are a testament to our financial strength and stability in a market where there are few safe harbors elsewhere, but the relatively thin spreads on these negotiated deposits put pressure on our net interest margin, which fell to 4.73% for the quarter.
"Capital City continued to enjoy growth in core noninterest income and has contained its operating expenses. We expect to sustain our efforts in these areas. And finally, our capital levels remain quite strong and should enable us to take advantage of opportunities that naturally arise in a difficult economy," said Smith.
The Return on Average Assets was 1.11% and the Return on Average Equity was 9.87% for the first quarter of 2008. These metrics were 1.11% and 8.91% for the comparable quarter in 2007 and 1.21% and 10.16% for the fourth quarter of 2007, respectively.
Discussion of Financial Condition
Average earning assets were $2.301 billion for the first quarter, an increase of $110.2 million, or 5.0% from the fourth quarter of 2007, and $89.9 million, or 4.1% from the first quarter of 2007. The increase over both prior periods was due to an increase in short-term investments reflective of an increase in our client deposit balances (see discussion below). Average loans increased $1.5 million, or .08% from the fourth quarter due to a steady pace of new loan production and a slowdown in the level of loan payoffs/pay-downs. Compared to the first quarter of 2007, average loans decreased $70.7 million, or 3.6% due to a high level of loan pay-offs/pay-downs many of which were tied to larger construction and permanent commercial real estate loans.
Nonperforming assets of $41.1 million increased from the linked fourth quarter by $12.9 million and from the first quarter of 2007 by $31.7 million. Nonaccrual loans increased $10.2 million and $27.1 million, respectively, from the same prior-year periods. The increase in nonaccrual loans in the first quarter primarily reflects the addition of three large real estate loan relationships totaling $9.8 million, which management believes have been adequately reserved for at quarter-end. These new nonaccrual loans are related to non-coastal residential real estate developments. Restructured loans totaled $2.0 million at the end of the first quarter. Other real estate owned totaled $3.8 million at the end of the quarter compared to $3.0 million at year-end 2007 and $1.2 million at the end of the first quarter of 2007. Nonperforming assets represented 2.14% of loans and other real estate at the end of the first quarter compared to 1.47% at year-end 2007 and .48% at the end of the first quarter of 2007.
Average total deposits were $2.149 billion for the first quarter, an increase of $132.1 million, or 6.6%, over the fourth quarter and $145.1 million, or 7.2%, over the first quarter of 2007. The increase over both comparable periods was driven by strong growth in negotiated NOW accounts, primarily public funds deposits which began migrating late in the fourth quarter from the Florida State Board of Administration's Local Government Investment Pool to Capital City Bank. Partially offsetting this increase were declines in noninterest bearing accounts, money market accounts, and certificates of deposit.
The Company had approximately $186.8 million in average net overnight funds sold for the first quarter of 2008 as compared to $84.1 million in average net overnight funds sold in the fourth quarter of 2007 and $21.9 million in the first quarter of 2007. The recent influx of public deposits contributed to the growth in overnight funds for the current quarter over both prior periods. Share repurchase activity throughout 2007, which totaled $43 million, also had an impact when compared to the first quarter of 2007.
Discussion of Operating Results
Tax equivalent net interest income for the first quarter of 2008 was $27.1 million compared to $28.2 million for the fourth quarter of 2007 and $28.9 million for the first quarter of 2007. The decline in net interest income for each respective period is attributable to compression of our net interest margin. While we believe we have been successful in neutralizing the impact of reductions in the Federal Reserve's target rate over the last two quarters, a rising level of foregone interest income associated with higher levels of nonperforming assets and the recent influx of higher cost negotiated deposits (primarily public funds) are the two primary factors producing a decline in the net interest margin of 37 basis points over fourth quarter 2007 and 56 basis points over first quarter 2007. Average negotiated deposits have grown from $275 million in the first quarter of 2007 to $538 million in the current quarter. Although this growth in deposits has had a positive impact on net interest income, it has had an adverse impact on our margin due to the relatively thin spreads on these deposits. See "Discussion of Financial Condition" for a more detailed analysis of nonperforming assets and deposit growth.
On a linked quarter basis, the average yield on earning assets declined 63 basis points and the average cost of funds fell 26 basis points producing a net reduction in the margin of 37 basis points from 5.10% to 4.73%. Year over year, the average yield on earning assets declined 84 basis points and the average cost of funds fell 28 basis points producing a net reduction in the margin of 56 basis points from 5.29% to 4.73%. Since September 2007, we have aggressively reduced our deposit rates in response to the rate reductions initiated by the Federal Reserve and believe we have been successful in neutralizing these rate reductions. However, the rapid growth in the higher cost negotiated deposits mitigated the full impact of lowering our deposit rates and, therefore, the decline in our average cost of funds was not commensurate with the decline in our average yield on earning assets.
The provision for loan losses for the current quarter was $4.1 million compared to $1.7 million in the fourth quarter of 2007 and $1.2 million for the first quarter of 2007. The increase in the provision for the current quarter is due to credit deterioration reflective of a higher level of impaired loan reserves and an increase in reserves allocated to consumer loans. These increases reflect the impact of the housing and real estate market slowdown, and the related stress on the consumer. For the quarter, net charge-offs totaled $1.9 million, or .41%, of average loans compared to $1.6 million, or .34% in the fourth quarter and $1.3 million, or .28% in the first quarter of 2007. At quarter-end, the allowance for loan losses was 1.06% of outstanding loans (net of overdrafts) and provided coverage of 54% of nonperforming loans.
Noninterest income for the first quarter increased $2.0 million, or 12.5%, over the fourth quarter of 2007 and $3.8 million, or 27.5%, over the first quarter of 2007. Compared to the fourth quarter, the increase is attributable to a pre-tax gain of $2.4 million from the redemption of Visa, Inc. shares. An expected seasonal decline in deposit fees ($491,000) partially offset the aforementioned gain. Compared to the first quarter of 2007, the increase is also due to the Visa, Inc. share redemption gain, as well as higher deposit and bank card fees of $720,000 and $474,000, respectively.
Noninterest expense decreased $1.8 million, or 5.7%, from the fourth quarter and $764,000, or 2.5%, from the first quarter of 2007. A one-time entry of $1.1 million to reverse a portion of the Visa, Inc. litigation accrual was the primary reason for the decline. In addition, we reversed $577,000 in accrued expense for our 2011 Incentive Plan, which was terminated during the first quarter.
About Capital City Bank Group, Inc.
Capital City Bank Group, Inc. (Nasdaq:CCBG) is one of the largest publicly traded financial services companies headquartered in Florida and has approximately $2.7 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 69 banking offices, two mortgage lending offices, and 80 ATMs in Florida, Georgia and Alabama. Since 2005, the Company has been named as a Dividend Achiever by Mergent, Inc., a leading provider of information on publicly traded companies. To be named a Dividend Achiever, a public company must have increased its regular cash dividends for at least 10 consecutive years. For more information about Capital City Bank Group, Inc., visit www.ccbg.com.
FORWARD-LOOKING STATEMENTS
Forward-looking statements in this Form 8-K 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 frequency and magnitude of foreclosure of the Company's loans; the effects of the Company's lack of a diversified loan portfolio, including the risks of geographic and industry concentrations; the accuracy of the Company's financial statement estimates and assumptions, including the estimate for the Company's loan loss provision; the Company's ability to integrate acquisitions; the strength of the U.S. economy and the local economies where the Company conducts operations; harsh weather conditions; fluctuations in inflation, interest rates, or monetary policies; changes in the stock market and other capital and real estate markets; legislative or regulatory changes; 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; 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, 2007, 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 Form 8-K speak only as of the date of the Form 8-K, and the Company assumes no obligation to update forward-looking statements or the reasons why actual results could differ.
EARNINGS HIGHLIGHTS
---------------------------------------------------------------------
Three Months Ended
-----------------------------
(Dollars in thousands, Mar 31, Dec 31, Mar 31,
except per share data.) 2008 2007 2007
---------------------------------------------------------------------
EARNINGS
Net Income $ 7,280 $ 7,664 $ 6,957
Diluted Earnings Per Common Share $ 0.42 $ 0.44 $ 0.38
---------------------------------------------------------------------
PERFORMANCE
Return on Average Equity 9.87% 10.16% 8.91%
Return on Average Assets 1.11% 1.21% 1.11%
Net Interest Margin 4.73% 5.10% 5.29%
Noninterest Income as % of Operating
Revenue 40.22% 36.49% 33.02%
Efficiency Ratio 63.15% 68.51% 67.90%
---------------------------------------------------------------------
CAPITAL ADEQUACY
Tier 1 Capital Ratio 12.94% 13.05% 13.88%
Total Capital Ratio 14.01% 14.05% 14.83%
Leverage Ratio 10.32% 10.41% 11.22%
Equity to Assets 11.06% 11.19% 12.04%
---------------------------------------------------------------------
ASSET QUALITY
Allowance as % of Non-Performing Loans 54.32% 71.92% 207.67%
Allowance as a % of Loans 1.06% 0.95% 0.87%
Net Charge-Offs as % of Average Loans 0.41% 0.34% 0.28%
Nonperforming Assets as % of Loans
and ORE 2.14% 1.47% 0.48%
---------------------------------------------------------------------
STOCK PERFORMANCE
High $ 29.99 $ 34.00 $ 35.91
Low $ 24.76 $ 24.60 $ 29.79
Close $ 29.00 $ 28.22 $ 33.30
Average Daily Trading Volume 31,827 52,489 24,499
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CAPITAL CITY BANK GROUP, INC.
CONSOLIDATED STATEMENT OF INCOME
Unaudited
---------------------------------------------------------------------
(Dollars in
thousands, 2008 2007 2007 2007 2007
except per First Fourth Third Second First
share data) Quarter Quarter Quarter Quarter Quarter
---------------------------------------------------------------------
INTEREST
INCOME
Interest
and Fees
on Loans $ 35,255 $ 37,730 $ 38,692 $ 39,092 $ 39,053
Investment
Securities 1,893 1,992 1,968 1,943 1,940
Funds Sold 1,575 1,064 639 689 521
---------------------------------------------------------------------
Total
Interest
Income 38,723 40,786 41,299 41,724 41,514
---------------------------------------------------------------------
INTEREST
EXPENSE
Deposits 10,481 11,323 11,266 11,098 11,000
Short-Term
Borrowings 521 639 734 737 761
Subordinated
Notes
Payable 931 936 936 932 926
Other
Long-Term
Borrowings 331 343 453 496 502
---------------------------------------------------------------------
Total
Interest
Expense 12,264 13,241 13,389 13,263 13,189
---------------------------------------------------------------------
Net Interest
Income 26,459 27,545 27,910 28,461 28,325
Provision
for Loan
Losses 4,142 1,699 1,552 1,675 1,237
---------------------------------------------------------------------
Net Interest
Income
after
Provision
for Loan
Losses 22,317 25,846 26,358 26,786 27,088
---------------------------------------------------------------------
NONINTEREST
INCOME
Service
Charges on
Deposit
Accounts 6,765 7,256 6,387 6,442 6,045
Data
Processing 813 853 775 790 715
Asset
Management
Fees 1,150 1,100 1,200 1,175 1,225
Retail
Brokerage
Fees 469 619 625 804 462
Gain on
Sale of
Investment
Securities 65 7 -- -- 7
Mortgage
Banking
Revenues 494 425 642 850 679
Merchant
Fees 2,208 1,743 1,686 1,892 1,936
Interchange
Fees 1,009 962 934 951 910
ATM/Debit
Card Fees 744 705 685 661 641
Other 4,082 2,153 1,497 1,519 1,342
---------------------------------------------------------------------
Total
Noninterest
Income 17,799 15,823 14,431 15,084 13,962
---------------------------------------------------------------------
NONINTEREST
EXPENSE
Salaries and
Associate
Benefits 15,604 14,472 15,096 14,992 15,719
Occupancy,
Net 2,362 2,378 2,409 2,324 2,236
Furniture
and
Equipment 2,582 2,534 2,513 2,494 2,349
Intangible
Amortization 1,459 1,458 1,459 1,458 1,459
Other 7,791 10,772 8,442 8,629 8,799
---------------------------------------------------------------------
Total
Noninterest
Expense 29,798 31,614 29,919 29,897 30,562
---------------------------------------------------------------------
OPERATING
PROFIT 10,318 10,055 10,870 11,973 10,488
Provision
for Income
Taxes 3,038 2,391 3,699 4,082 3,531
---------------------------------------------------------------------
NET INCOME $ 7,280 $ 7,664 $ 7,171 $ 7,891 $ 6,957
---------------------------------------------------------------------
PER SHARE
DATA
Basic
Earnings $ 0.42 $ 0.44 $ 0.41 $ 0.43 $ 0.38
Diluted
Earnings $ 0.42 $ 0.44 $ 0.41 $ 0.43 $ 0.38
Cash
Dividends 0.185 0.185 0.175 0.175 0.175
AVERAGE
SHARES
Basic 17,170 17,444 17,709 18,089 18,409
Diluted 17,178 17,445 17,719 18,089 18,420
---------------------------------------------------------------------
CAPITAL CITY BANK GROUP, INC.
CONSOLIDATED STATEMENT OF FINANCIAL CONDITION
Unaudited
---------------------------------------------------------------------
(Dollars in
thousands, 2008 2007 2007 2007 2007
except per First Fourth Third Second First
share data) Quarter Quarter Quarter Quarter Quarter
---------------------------------------------------------------------
ASSETS
Cash and
Due From
Banks $ 97,525 $ 93,437 $ 91,378 $ 95,573 $ 92,233
Funds Sold
and Interest
Bearing
Deposits 241,202 166,260 19,599 77,297 93,832
---------------------------------------------------------------------
Total Cash
and Cash
Equiv-
alents 338,727 259,697 110,977 172,870 186,065
Investment
Securities,
Available-
for-Sale 186,944 190,719 184,609 189,680 191,446
Loans, Net
of Unearned
Interest
Commercial,
Financial,
& Agri-
cultural 202,238 208,864 205,628 203,555 205,048
Real
Estate -
Construc-
tion 152,060 142,248 145,343 159,751 180,549
Real
Estate -
Commercial 624,826 634,920 631,418 640,172 643,272
Real
Estate -
Residen-
tial 482,058 481,150 480,488 493,783 509,040
Real
Estate -
Home
Equity 197,093 192,428 183,620 175,781 172,283
Consumer 238,663 243,415 246,137 240,110 235,175
Other
Loans 10,506 7,222 8,739 14,715 14,899
Overdrafts 7,014 5,603 2,515 2,844 5,575
---------------------------------------------------------------------
Total
Loans,
Net of
Unearned
Interest 1,914,458 1,915,850 1,903,888 1,930,711 1,965,841
Allowance
for Loan
Losses (20,277) (18,066) (18,001) (17,469) (17,108)
---------------------------------------------------------------------
Loans,
Net 1,894,181 1,897,784 1,885,887 1,913,242 1,948,733
Premises and
Equipment,
Net 100,145 98,612 95,816 92,656 88,812
Intangible
Assets 97,109 98,568 100,026 101,485 102,944
Other Assets 75,406 70,947 62,611 60,815 60,117
---------------------------------------------------------------------
Total
Other
Assets 272,660 268,127 258,453 254,956 251,873
---------------------------------------------------------------------
Total
Assets $2,692,512 $2,616,327 $2,439,926 $2,530,748 $2,578,117
---------------------------------------------------------------------
LIABILITIES
Deposits:
Noninterest
Bearing
Deposits $ 432,904 $ 432,659 $ 419,242 $ 456,986 $ 467,875
NOW
Accounts 800,128 744,093 530,619 559,050 575,740
Money
Market
Accounts 381,474 386,619 399,578 401,415 396,150
Regular
Savings
Accounts 116,018 111,600 115,955 119,585 124,970
Certificates
of Deposit 462,081 467,373 472,019 472,554 477,327
---------------------------------------------------------------------
Total
Deposits 2,192,605 2,142,344 1,937,413 2,009,590 2,042,062
Short-Term
Borrowings 61,781 53,131 63,817 74,307 77,936
Subordinated
Notes
Payable 62,887 62,887 62,887 62,887 62,887
Other
Long-Term
Borrowings 29,843 26,731 29,725 41,276 42,879
Other
Liabilities 47,723 38,559 47,031 41,251 41,841
---------------------------------------------------------------------
Total
Liabil-
ities 2,394,839 2,323,652 2,140,873 2,229,311 2,267,605
---------------------------------------------------------------------
SHAREOWNERS'
EQUITY
Common Stock 172 172 176 179 183
Additional
Paid-In
Capital 38,042 38,243 50,789 58,001 71,366
Retained
Earnings 264,538 260,325 255,876 251,838 246,959
Accumulated
Other
Comprehensive
Loss, Net
of Tax (5,079) (6,065) (7,788) (8,581) (7,996)
---------------------------------------------------------------------
Total
Shareowners'
Equity 297,673 292,675 299,053 301,437 310,512
---------------------------------------------------------------------
Total
Liabilities
and
Shareowners'
Equity $2,692,512 $2,616,327 $2,439,926 $2,530,748 $2,578,117
---------------------------------------------------------------------
OTHER
BALANCE
SHEET DATA
Earning
Assets $2,342,604 $2,272,829 $2,108,096 $2,197,688 $2,251,119
Intangible
Assets
Goodwill 84,811 84,811 84,811 84,811 84,811
Deposit Base 11,167 12,578 13,988 15,399 16,810
Other 1,131 1,179 1,227 1,275 1,323
Interest
Bearing
Liabil-
ities 1,914,212 1,852,434 1,674,600 1,731,074 1,757,889
---------------------------------------------------------------------
Book Value
Per Diluted
Share $ 17.33 $ 17.03 $ 16.95 $ 16.87 $ 16.97
Tangible
Book Value
Per Diluted
Share 11.67 11.30 11.28 11.19 11.34
---------------------------------------------------------------------
Actual
Basic
Shares
Outstanding 17,175 17,183 17,628 17,869 18,287
Actual
Diluted
Shares
Outstanding 17,183 17,184 17,639 17,869 18,297
---------------------------------------------------------------------
CAPITAL CITY BANK GROUP, INC.
ALLOWANCE FOR LOAN LOSSES
AND NONPERFORMING ASSETS
Unaudited
---------------------------------------------------------------------
2008 2007 2007 2007 2007
(Dollars in First Fourth Third Second First
thousands) Quarter Quarter Quarter Quarter Quarter
---------- ---------- ---------- ---------- ---------- ----------
ALLOWANCE
FOR LOAN
LOSSES
Balance at
Beginning
of Period $ 18,066 $ 18,001 $ 17,469 $ 17,108 $ 17,217
Provision
for Loan
Losses 4,142 1,699 1,552 1,675 1,237
Net Charge-
Offs 1,931 1,634 1,020 1,314 1,346
---------------------------------------------------------------------
Balance at
End of
Period $ 20,277 $ 18,066 $ 18,001 $ 17,469 $ 17,108
---------------------------------------------------------------------
As a % of
Loans 1.06% 0.95% 0.95% 0.91% 0.87%
As a % of
Nonperforming
Loans 54.32% 71.92% 145.49% 193.69% 207.67%
As a % of
Nonperforming
Assets 49.34% 64.15% 128.05% 172.61% 181.23%
---------------------------------------------------------------------
CHARGE-OFFS
Commercial,
Financial
and Agri-
cultural $ 636 $ 370 $ 279 $ 253 $ 560
Real Estate -
Construction 572 58 -- -- 108
Real Estate -
Commercial 126 133 245 5 326
Real Estate -
Residential 176 209 161 992 67
Consumer 1,170 1,302 854 534 761
---------------------------------------------------------------------
Total
Charge-
Offs $ 2,680 $ 2,072 $ 1,539 $ 1,784 $ 1,822
---------------------------------------------------------------------
RECOVERIES
Commercial,
Financial
and Agri-
cultural $ 139 $ 47 $ 44 $ 47 $ 36
Real Estate -
Construction -- -- -- -- --
Real Estate -
Commercial 1 2 2 5 5
Real Estate -
Residential 3 5 2 26 3
Consumer 606 384 471 392 432
---------------------------------------------------------------------
Total
Recover-
ies $ 749 $ 438 $ 519 $ 470 $ 476
---------------------------------------------------------------------
NET CHARGE-
OFFS $ 1,931 $ 1,634 $ 1,020 $ 1,314 $ 1,346
---------------------------------------------------------------------
Net Charge-
Offs as a
% of
Average
Loans(1) 0.41% 0.34% 0.21% 0.27% 0.28%
---------------------------------------------------------------------
RISK ELEMENT
ASSETS
Nonaccruing
Loans $ 35,352 $ 25,120 $ 12,373 $ 9,019 $ 8,238
Restructured
Loans 1,980 -- -- -- --
---------------------------------------------------------------------
Total
Nonperforming
Loans 37,332 25,120 12,373 9,019 8,238
Other Real
Estate 3,768 3,043 1,685 1,102 1,202
---------------------------------------------------------------------
Total
Nonperforming
Assets $ 41,100 $ 28,163 $ 14,058 $ 10,121 $ 9,440
---------------------------------------------------------------------
Past Due
Loans 90
Days or
More $ 842 $ 416 $ 874 $ 332 $ 860
---------------------------------------------------------------------
Nonperforming
Loans as a
% of Loans 1.95% 1.31% 0.65% 0.47% 0.42%
Nonperforming
Assets as
a % of
Loans and
Other Real
Estate 2.14% 1.47% 0.74% 0.52% 0.48%
Nonperforming
Assets as
a % of
Capital(2) 12.93% 9.06% 4.43% 3.17% 2.88%
---------------------------------------------------------------------
(1) Annualized
(2) Capital includes allowance for loan losses.
AVERAGE BALANCE AND INTEREST RATES(1)
Unaudited
---------------------------------------------------------------------
First Quarter 2008 Fourth Quarter 2007
------------------------- -------------------------
(Dollars in Average Average Average Average
thousands) Balance Interest Rate Balance Interest Rate
--------------------------- ------- ---- ---------- ------- ----
ASSETS:
Loans, Net of
Unearned
Interest $1,909,574 35,452 7.47% $1,908,069 37,969 7.89%
Investment
Securities
Taxable
Investment
Securities 94,786 1,108 4.67% 99,055 1,226 4.93%
Tax-Exempt
Investment
Securities 90,790 1,207 5.32% 87,358 1,178 5.39%
---------------------------------------------------------------------
Total Investment
Securities 185,576 2,315 4.99% 186,413 2,404 5.15%
Funds Sold 206,313 1,574 3.02% 96,748 1,064 4.31%
---------------------------------------------------------------------
Total Earning
Assets 2,301,463 $39,341 6.87% 2,191,230 $41,437 7.50%
------------- -------------
Cash and Due
From Banks 94,247 85,598
Allowance for
Loan Losses (18,227) (18,127)
Other Assets 268,991 260,981
--------------------------- ----------
Total Assets $2,646,474 $2,519,682
--------------------------- ----------
LIABILITIES:
Interest Bearing
Deposits
NOW Accounts $ 773,891 $ 3,440 1.79% $ 608,347 $ 2,980 1.94%
Money Market
Accounts 389,828 2,198 2.27% 404,406 3,217 3.16%
Savings Accounts 113,163 34 0.12% 113,527 57 0.20%
Time Deposits 467,280 4,809 4.14% 471,454 5,069 4.27%
---------------------------------------------------------------------
Total Interest
Bearing
Deposits 1,744,162 10,481 2.42% 1,597,734 11,323 2.81%
Short-Term
Borrowings 68,095 521 3.06% 64,842 639 3.89%
Subordinated
Notes Payable 62,887 931 5.96% 62,887 936 5.91%
Other Long-Term
Borrowings 27,644 331 4.82% 28,215 343 4.83%
---------------------------------------------------------------------
Total Interest
Bearing
Liabilities 1,902,788 $12,264 2.59% 1,753,678 $13,241 3.00%
------------- -------------
Noninterest
Bearing
Deposits 404,712 419,002
Other
Liabilities 42,170 47,660
--------------------------- ----------
Total
Liabilities 2,349,670 2,220,340
SHAREOWNERS'
EQUITY: $ 296,804 $ 299,342
--------------------------- ----------
Total
Liabilities and
Shareowners'
Equity $2,646,474 $2,519,682
--------------------------- ----------
Interest Rate
Spread $27,077 4.28% $28,195 4.50%
------------------------------------------ -------------
Interest Income
and Rate
Earned(1) $39,341 6.87% $41,437 7.50%
Interest Expense
and Rate Paid(2) 12,264 2.14% 13,242 2.40%
------------------------------------------ -------------
Net Interest
Margin $27,077 4.73% $28,195 5.10%
------------------------------------------ -------------
---------------------------------------------------------------------
Third Quarter 2007 Second Quarter 2007
------------------------- -------------------------
(Dollars in Average Average Average Average
thousands) Balance Interest Rate Balance Interest Rate
--------------------------- ------- ---- ---------- ------- ----
ASSETS:
Loans, Net of
Unearned
Interest $1,907,235 38,901 8.09% $1,944,969 39,300 8.10%
Investment
Securities
Taxable
Investment
Securities 102,618 1,224 4.75% 105,425 1,236 4.68%
Tax-Exempt
Investment
Securities 85,446 1,142 5.35% 83,907 1,088 5.19%
---------------------------------------------------------------------
Total Investment
Securities 188,064 2,366 5.02% 189,332 2,324 4.91%
Funds Sold 49,438 639 5.06% 52,935 689 5.15%
---------------------------------------------------------------------
Total Earning
Assets 2,144,737 $41,906 7.75% 2,187,236 $42,313 7.76%
------------- -------------
Cash and Due
From Banks 84,477 88,075
Allowance for
Loan Losses (17,664) (17,263)
Other Assets 256,153 253,204
--------------------------- ----------
Total Assets $2,467,703 $2,511,252
--------------------------- ----------
LIABILITIES:
Interest Bearing
Deposits
NOW Accounts $ 525,795 $ 2,531 1.91% $ 541,525 $ 2,611 1.93%
Money Market
Accounts 403,957 3,565 3.50% 393,403 3,458 3.53%
Savings Accounts 117,451 70 0.24% 122,560 74 0.24%
Time Deposits 471,868 5,100 4.29% 474,761 4,955 4.19%
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Total Interest
Bearing
Deposits 1,519,071 11,266 2.94% 1,532,249 11,098 2.91%
Short-Term
Borrowings 65,130 734 4.45% 66,764 737 4.41%
Subordinated
Notes Payable 62,887 936 5.91% 62,887 932 5.94%
Other Long-Term
Borrowings 38,269 453 4.70% 42,284 496 4.71%
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Total Interest
Bearing
Liabilities 1,685,357 $13,389 3.15% 1,704,184 $13,263 3.12%
------------- -------------
Noninterest
Bearing
Deposits 435,089 455,169
Other
Liabilities 45,721 42,547
--------------------------- ----------
Total
Liabilities 2,166,167 2,201,900
SHAREOWNERS'
EQUITY: $ 301,536 $ 309,352
--------------------------- ----------
Total
Liabilities and
Shareowners'
Equity $2,467,703 $2,511,252
--------------------------- ----------
Interest Rate
Spread $28,517 4.60% $29,050 4.64%
------------------------------------------ -------------
Interest Income
and Rate
Earned(1) $41,906 7.75% $42,313 7.76%
Interest Expense
and Rate Paid(2) 13,389 2.48% 13,263 2.43%
------------------------------------------ -------------
Net Interest
Margin $28,517 5.27% $29,050 5.33%
------------------------------------------ -------------
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First Quarter 2007
-------------------------
Average Average
(Dollars in thousands) Balance Interest Rate
------------------------------------------ ---------- ------- ----
ASSETS:
Loans, Net of Unearned Interest $1,980,224 39,264 8.04%
Investment Securities
Taxable Investment Securities 108,377 1,263 4.67%
Tax-Exempt Investment Securities 82,627 1,039 5.03%
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Total Investment Securities 191,004 2,302 4.82%
Funds Sold 40,332 521 5.17%
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Total Earning Assets 2,211,560 $42,087 7.71%
-------------
Cash and Due From Banks 88,679
Allowance for Loan Losses (17,073)
Other Assets 247,624
------------------------------------------------------
Total Assets $2,530,790
------------------------------------------------------
LIABILITIES:
Interest Bearing Deposits
NOW Accounts $ 552,303 $ 2,626 1.93%
Money Market Accounts 386,736 3,427 3.59%
Savings Accounts 125,419 78 0.25%
Time Deposits 480,964 4,869 4.11%
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Total Interest Bearing Deposits 1,545,422 11,000 2.89%
Short-Term Borrowings 68,911 761 4.46%
Subordinated Notes Payable 62,887 926 5.97%
Other Long-Term Borrowings 43,137 502 4.72%
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Total Interest Bearing Liabilities 1,720,357 $13,189 3.11%
-------------
Noninterest Bearing Deposits 458,304
Other Liabilities 35,645
------------------------------------------------------
Total Liabilities 2,214,306
SHAREOWNERS' EQUITY: $ 316,484
------------------------------------------------------
Total Liabilities and Shareowners' Equity $2,530,790
------------------------------------------------------
Interest Rate Spread $28,898 4.60%
---------------------------------------------------------------------
Interest Income and Rate Earned(1) $42,087 7.71%
Interest Expense and Rate Paid(2) 13,189 2.42%
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Net Interest Margin $28,898 5.29%
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(1) Interest and average rates are calculated on a tax-equivalent
basis using the 35% Federal tax rate.
(2) Rate calculated based on average earnings assets.