Capital City Bank Group, Inc. Reports Third Quarter 2019 Results


TALLAHASSEE, Fla., Oct. 29, 2019 (GLOBE NEWSWIRE) -- Capital City Bank Group, Inc. (NASDAQ: CCBG) today reported net income of $8.5 million, or $0.50 per diluted share for the third quarter of 2019 compared to net income of $7.3 million, or $0.44 per diluted share for the second quarter of 2019, and $6.0 million, or $0.35 per diluted share for the third quarter of 2018.  For the first nine months of 2019, net income totaled $22.2 million, or $1.32 per diluted share, compared to net income of $17.8 million, or $1.04 per diluted share for the same period of 2018. 

Net income for the first nine months of 2018 included tax benefits totaling $3.3 million, or $0.19 per diluted share (1Q - $1.5 million, or $0.09 per diluted share, 2Q - $1.4 million, or $0.08 per diluted share, and 3Q - $0.4 million, or $0.02 per diluted share) related to 2017 plan year pension contributions made in 2018.

HIGHLIGHTS

  • Strong operating leverage
    • Net interest income up 0.8% sequentially and 13.1% year-over-year
    • Noninterest income up 8.9% sequentially and 2.3% year-over-year
    • Noninterest expense down 1.8%  sequentially and 0.6% year-over-year
  • Net interest margin of 3.92%, up seven basis points over prior quarter
  • Average loans up $14 million, or 0.8% sequentially and $118 million, or 7.0% year-over-year
  • Classified loans declined $5.1 million, or 19% sequentially
  • Tangible common equity ratio, a non-GAAP financial measure, up 48 basis points sequentially to 8.31%

“Capital City reported a strong third quarter, and year-to-date net income is up 25%,” said William G. Smith, Jr., Capital City Bank Group Chairman, President and CEO.  “Given the reduction in rates during the quarter, I was pleased with the improvement in our net interest margin, which was driven by a seven basis point decline in our cost of funds.  Noninterest income is well diversified, and we posted solid growth for the quarter while our efficiency ratio declined to 69%.  Although average loan growth slowed this quarter, year-to-date we have enjoyed strong growth in our C&I, construction and residential portfolios, and credit quality continues to improve.  Florida and Georgia are strong and growing, and I remain optimistic.  Your management team will continue to focus on implementing strategies that produce long-term value for our shareowners, and I appreciate your continued support.”

Compared to the second quarter of 2019, the $1.7 million increase in operating profit reflected a $0.2 million increase in net interest income, higher noninterest income of $1.1 million, and lower noninterest expense of $0.5 million, partially offset by a $0.1 million increase in the loan loss provision.

Compared to the third quarter of 2018, the $4.1 million increase in operating profit was attributable to higher net interest income of $2.6 million, higher noninterest income of $0.6 million, lower noninterest expense of $0.8 million, and a $0.1 million decrease in the loan loss provision.

The increase in operating profit of $10.6 million for the first nine months of 2019 versus the comparable period of 2018 was attributable to higher net interest income of $8.9 million, higher noninterest income of $0.9 million, lower noninterest expense of $0.5 million, and a $0.3 million decrease in the loan loss provision.

Our return on average assets (“ROA”) was 1.14% and our return on average equity (“ROE”) was 10.51% for the third quarter of 2019.  These metrics were 0.98% and 9.37% for the second quarter of 2019, respectively, and 0.84% and 7.98% for the third quarter of 2018, respectively.  For the first nine months of 2019, our ROA was 1.00% and our ROE was 9.48% compared to 0.83% and 8.12%, respectively, for the same period of 2018.

Discussion of Operating Results

Tax-equivalent net interest income for the third quarter of 2019 was $26.3 million compared to $26.1 million for the second quarter of 2019 and $23.8 million for the third quarter of 2018.  The increase in tax-equivalent net interest income compared to the second quarter of 2019 reflected a favorable shift in the average earning asset mix. The increase compared to the third quarter of 2018 primarily reflected higher interest rates and loan growth.  For the first nine months of 2019, tax-equivalent net interest income totaled $77.5 million compared to $68.6 million for the comparable period of 2018.  The year-over-year increase was driven by growth in the loan portfolio, coupled with higher short-term rates, partially offset by higher rates paid on our negotiated rate deposits.

The federal funds target rate reached a recent high in the second quarter of 2019 at a range of 2.25% to 2.50%. During the third quarter, 2019, the Federal Open Market Committee reduced rates by an aggregate of 50 basis points to the current range of 1.75% to 2.00%.  These rate cuts have resulted in downward repricing of our variable/adjustable rate earning assets, which to date has been offset by loan growth and lower rates paid on our negotiated rate deposit products.  We continue to prudently manage our overall cost of funds, which was 33 basis points for the third quarter of 2019, compared to 40 basis points for the second quarter of 2019.  Due to highly competitive fixed-rate loan pricing in our markets, we continue to review our loan pricing and make adjustments where we believe appropriate and prudent.   

Our net interest margin for the third quarter of 2019 was 3.92%, an increase of seven basis points over the second quarter of 2019 and an increase of 20 basis points over the third quarter of 2018.  For the first nine months of 2019, the net interest margin increased 26 basis points to 3.84% compared to the same period of 2018.  The increase in margin compared to the second quarter of 2019 was fully attributable to a seven basis point decline in our cost of funds, as both the rate and balance of our seasonal public deposits declined in the third quarter 2019.  The increase in the margin compared to both prior year periods reflected a favorable shift in our earning asset mix and higher interest rates.

The provision for loan losses for the third quarter of 2019 was $0.8 million compared to $0.6 million for the second quarter of 2019 and $0.9 million for the third quarter of 2018.  For the first nine months of 2019, the loan loss provision was $2.2 million compared to $2.5 million in 2018.  At September 30, 2019, the allowance for loan losses of $14.3 million represented 0.78% of outstanding loans (net of overdrafts) and provided coverage of 291% of nonperforming loans compared to 0.79% and 260%, respectively, at June 30, 2019 and 0.80% and 207%, respectively, at December 31, 2018.

Noninterest income for the third quarter of 2019 totaled $13.9 million, an increase of $1.1 million, or 8.9%, over the second quarter of 2019 and a $0.6 million, or 4.5%, increase over the third quarter of 2018.  For the first nine months of 2019, noninterest income totaled $39.2 million, a $0.9 million, or 2.3%, increase over the same period of 2018.  Higher wealth management fees, mortgage banking fees, and deposit fees drove the increase compared to the second quarter of 2019.  The increase over both prior year periods was primarily attributable to higher wealth management fees (increased trading activity by retail brokerage clients and, to a lesser extent, higher assets under management) and mortgage banking fees.

Noninterest expense for the third quarter of 2019 totaled $27.9 million, a decrease of $0.5 million, or 1.8%, from the second quarter of 2019 and $0.8 million, or 2.9%, from the third quarter of 2018.  For the first nine months of 2019, noninterest expense totaled $84.5 million, a $0.5 million, or 0.6% decrease from the same period of 2018.  In the third quarter of 2019, our small bank assessment credits were used to offset our FDIC insurance fees, which had a favorable impact of $0.4 million.  Lower expense for other real estate owned (“OREO”) properties also contributed to the favorable variance versus both prior year periods.  
       
We realized income tax expense of $7.4 million (effective rate of 25.0%) for the first nine months of 2019 compared to $1.3 million (effective rate of 6.6%) for the same period of 2018.  Income tax expense for the third quarter of 2019 was unfavorably impacted by net discrete items totaling $0.2 million.  During 2018, we realized tax benefits totaling $3.3 million (1Q - $1.5 million, 2Q - $1.4 million, 3Q - $0.4 million) resulting from the effect of federal tax reform on pension plan contributions made in 2018 for the plan year 2017.     

Discussion of Financial Condition

Average earning assets were $2.670 billion for the third quarter of 2019, a decrease of $49.1 million, or 1.8%, from the second quarter of 2019, and an increase of $115.6 million, or 4.5%, over the fourth quarter of 2018.  The change in average earning assets compared to the second quarter of 2019 was attributable to a decrease in short-term investments, primarily due to a decline in seasonal public fund balances and certificates of deposit.  The increase in average earning assets over the fourth quarter of 2018 was attributable to growth in both the loan portfolio and the overnight funds position, which was primarily funded by increases in noninterest bearing deposits and savings accounts.

We maintained an average net overnight funds (deposits with banks plus fed funds sold less fed funds purchased) sold position of $207.1 million during the third quarter of 2019 compared to an average net overnight funds sold position of $251.8 million in the second quarter of 2019 and $80.8 million in the fourth quarter of 2018.  The decrease in average net overnight funds compared to the second quarter 2019 reflected a decline in public fund deposits, partially offset by cash flow received from the investment portfolio. Overnight funds grew compared to the fourth quarter 2018 primarily due to higher balances of noninterest bearing deposits and cash flow from our investment portfolio, partially offset by loan growth.   

Average loans increased $14.2 million, or 0.8% compared to the second quarter of 2019, and grew by $52.0 million, or 2.9% compared to the fourth quarter of 2018.  The average increase compared to the second quarter of 2019 reflected growth in all loan types except commercial real estate, consumer loans, and home equity loans.  The increase compared to the fourth quarter of 2018 reflected growth in all product types except consumer and home equity loans. Over the course of 2019, we purchased adjustable rate residential loans totaling $11.2 million and a fixed rate commercial loan pool totaling $10.3 million based on principal balances at the time of purchase.

Without compromising our credit standards or taking on inordinate interest rate risk, we have modified some of our lending programs to address the highly competitive rate environment. We continue to closely monitor our markets and make minor rate adjustments as necessary.

Nonperforming assets (nonaccrual loans and OREO) totaled $5.5 million at September 30, 2019, a decrease of $1.2 million, or 17.8%, from June 30, 2019 and $3.6 million, or 40.1%, from December 31, 2018.  Nonaccrual loans totaled $4.9 million at September 30, 2019, a $0.7 million decrease from June 30, 2019 and a $1.9 million decrease from December 31, 2018.  The balance of OREO totaled $0.5 million at September 30, 2019, a decrease of $0.5 million and $1.7 million, respectively, from June 30, 2019 and December 31, 2018. 

Average total deposits were $2.496 billion for the third quarter of 2019, a decrease of $69.7 million, or 2.7%, from the second quarter of 2019, and an increase of $83.4 million, or 3.5%, over the fourth quarter of 2018.  The decline in average deposits compared to the second quarter of 2019 reflected lower public fund and certificates of deposit balances, partially offset by increases in noninterest bearing and savings accounts.  The increase in average deposits compared to the fourth quarter of 2018 primarily reflected growth in noninterest bearing deposits.

We continue to closely monitor and manage deposit levels as part of our overall liquidity position and believe a prudent pricing discipline remains the key to managing our mix of deposits.

Average borrowings for the third quarter 2019 decreased $1.3 million compared to the second quarter 2019, and declined $9.5 million compared to the fourth quarter of 2018. Declines compared to both prior periods occurred in both short-term and long-term borrowings.     

Shareowners equity was $321.6 million at September 30, 2019 compared to $314.6 million at June 30, 2019 and $302.6 million at December 31, 2018.  Our leverage ratio was 11.09%, 10.64%, and 10.89%, respectively, on these dates.  At September 30, 2019, our total risk-based capital ratio was 17.59% compared to 17.13% and 17.13%, respectively.  Our common equity tier 1 capital ratio was 14.13% at September 30, 2019 compared to 13.67% at June 30, 2019 and 13.58% at December 31, 2018.  All of our regulatory capital ratios exceeded the threshold to be designated as “well-capitalized” under the Basel III capital standards.  Further, our tangible common equity ratio was 8.31% at September 30, 2019 compared to 7.83% and 7.58% for June 30, 2019 and December 31, 2018, respectively.  

About Capital City Bank Group, Inc.

Capital City Bank Group, Inc. (NASDAQ: CCBG) is one of the largest publicly traded financial holding companies headquartered in Florida and has approximately $2.9 billion in assets.  We provide a full range of banking services, including traditional deposit and credit services, mortgage banking, asset management, trust, merchant services, bankcards and securities brokerage services.  Our bank subsidiary, Capital City Bank, was founded in 1895 and now has 57 banking offices and 81 ATMs in Florida, Georgia and Alabama.  For more information about Capital City Bank Group, Inc., visit www.ccbg.com.

FORWARD-LOOKING STATEMENTS

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

USE OF NON-GAAP FINANCIAL MEASURES

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

(Dollars in Thousands) Sep 30, 2019Jun 30, 2019Mar 31, 2019Dec 31, 2018Sep 30, 2018
Shareowners' Equity (GAAP) $321,562 $314,595 $308,986 $302,587 $298,016 
Less: Goodwill (GAAP)  84,811  84,811  84,811  84,811  84,811 
Tangible Shareowners' Equity (non-GAAP)A 236,751  229,784  224,175  217,776  213,205 
Total Assets (GAAP)  2,934,513  3,017,654  3,052,051  2,959,183  2,819,190 
Less: Goodwill (GAAP)  84,811  84,811  84,811  84,811  84,811 
Tangible Assets (non-GAAP)B$2,849,702 $2,932,843 $2,967,240 $2,874,372 $2,734,379 
Tangible Common Equity Ratio (non-GAAP)A/B 8.31% 7.83% 7.56% 7.58% 7.80%
Actual Diluted Shares Outstanding (GAAP)C 16,797,241  16,773,449  16,840,496  16,808,542  17,127,846 
Tangible Book Value per Diluted Share (non-GAAP)A/C$14.09 $13.70 $13.31 $12.96 $12.45 
                 


           
CAPITAL CITY BANK GROUP, INC.          
EARNINGS HIGHLIGHTS          
Unaudited          
           
  Three Months Ended Nine Months Ended
(Dollars in thousands, except per share data) Sep 30, 2019 Jun 30, 2019 Sep 30, 2018 Sep 30, 2019 Sep 30, 2018
           
EARNINGS          
Net Income$8,481 $7,325 $5,990 $22,242 $17,766 
Net Income Per Common Share$0.50 $0.44 $0.35 $1.32 $1.04 
PERFORMANCE          
Return on Average Assets 1.14% 0.98% 0.84% 1.00% 0.83%
Return on Average Equity 10.51% 9.37% 7.98% 9.48% 8.12%
Net Interest Margin 3.92% 3.85% 3.72% 3.84% 3.58%
Noninterest Income as % of Operating Revenue 34.67% 32.95% 36.04% 33.72% 35.99%
Efficiency Ratio 69.27% 73.02% 77.37% 72.37% 79.46%
CAPITAL ADEQUACY          
Tier 1 Capital Ratio 16.83% 16.36% 16.17% 16.83% 16.17%
Total Capital Ratio 17.59% 17.13% 16.94% 17.59% 16.94%
Leverage Ratio 11.09% 10.64% 10.99% 11.09% 10.99%
Common Equity Tier 1 Ratio 14.13% 13.67% 13.43% 14.13% 13.43%
Tangible Common Equity Ratio(1) 8.31% 7.83% 7.80% 8.31% 7.80%
Equity to Assets 10.96% 10.43% 10.57% 10.96% 10.57%
ASSET QUALITY          
Allowance as % of Non-Performing Loans 290.55% 259.55% 207.06% 290.55% 207.06%
Allowance as a % of Loans 0.78% 0.79% 0.80% 0.78% 0.80%
Net Charge-Offs as % of Average Loans 0.23% 0.04% 0.06% 0.15% 0.12%
Nonperforming Assets as % of Loans and ORE 0.30% 0.36% 0.54% 0.30% 0.54%
Nonperforming Assets as % of Total Assets 0.19% 0.22% 0.34% 0.19% 0.34%
STOCK PERFORMANCE          
High$28.00 $25.00 $25.91 $28.00 $26.50 
Low 23.70  21.57  23.19  21.04  22.28 
Close$27.45 $24.85 $23.34 $27.45 $23.34 
Average Daily Trading Volume 25,596  24,258  16,500  22,815  20,957 
           
(1)Tangible common equity ratio is a non-GAAP financial measure.  For additional information, including a reconciliation to GAAP, refer to page 4.
           


           
CAPITAL CITY BANK GROUP, INC.          
CONSOLIDATED STATEMENT OF FINANCIAL CONDITION      
Unaudited          
           
  2019 2018
(Dollars in thousands) Third Quarter Second Quarter First Quarter Fourth Quarter Third Quarter
ASSETS          
Cash and Due From Banks$61,151 $53,731 $49,501 $62,032 $48,423 
Funds Sold and Interest Bearing Deposits 177,389  234,097  304,213  213,968  26,839 
Total Cash and Cash Equivalents 238,540  287,828  353,714  276,000  75,262 
           
Investment Securities Available for Sale 376,981  410,851  429,016  446,157  484,243 
Investment Securities Held to Maturity 240,303  229,516  226,179  217,320  227,923 
  Total Investment Securities 617,284  640,367  655,195  663,477  712,166 
           
Loans Held for Sale 13,075  9,885  4,557  6,869  8,297 
           
Loans, Net of Unearned Interest          
Commercial, Financial, & Agricultural 259,870  265,001  238,942  233,689  239,044 
Real Estate - Construction 111,358  101,372  87,123  89,527  87,672 
Real Estate - Commercial 610,726  614,618  615,129  602,061  596,391 
Real Estate - Residential 354,545  349,843  338,574  334,197  333,896 
Real Estate - Home Equity 197,326  201,579  209,194  210,111  212,942 
Consumer 277,970  288,196  296,351  295,040  294,040 
Other Loans 14,248  13,131  10,430  8,018  8,167 
Overdrafts 1,710  1,442  1,362  1,582  1,602 
Total Loans, Net of Unearned Interest 1,827,753  1,835,182  1,797,105  1,774,225  1,773,754 
Allowance for Loan Losses (14,319) (14,593) (14,120) (14,210) (14,219)
Loans, Net 1,813,434  1,820,589  1,782,985  1,760,015  1,759,535 
           
Premises and Equipment, Net 85,810  86,005  86,846  87,190  89,567 
Goodwill 84,811  84,811  84,811  84,811  84,811 
Other Real Estate Owned 526  1,010  1,902  2,229  2,720 
Other Assets 81,033  87,159  82,041  78,592  86,832 
Total Other Assets 252,180  258,985  255,600  252,822  263,930 
           
Total Assets$2,934,513 $3,017,654 $3,052,051 $2,959,183 $2,819,190 
           
LIABILITIES          
Deposits:          
Noninterest Bearing Deposits$1,022,774 $1,024,898 $995,853 $947,858 $934,146 
NOW Accounts 728,395  810,568  887,453  867,209  713,967 
Money Market Accounts 239,410  240,181  244,628  237,739  254,099 
Regular Savings Accounts 372,601  371,773  372,414  358,306  352,508 
Certificates of Deposit 109,827  113,684  116,946  120,744  126,496 
Total Deposits 2,473,007  2,561,104  2,617,294  2,531,856  2,381,216 
           
Short-Term Borrowings 10,622  9,753  8,983  13,541  16,644 
Subordinated Notes Payable 52,887  52,887  52,887  52,887  52,887 
Other Long-Term Borrowings 6,963  7,313  7,661  8,568  12,456 
Other Liabilities 69,472  72,002  56,240  49,744  57,971 
           
Total Liabilities 2,612,951  2,703,059  2,743,065  2,656,596  2,521,174 
           
SHAREOWNERS' EQUITY          
Common Stock 167  167  168  167  171 
Additional Paid-In Capital 31,075  30,751  31,929  31,058  38,325 
Retained Earnings 316,551  310,247  304,763  300,177  293,254 
Accumulated Other Comprehensive Loss, Net of Tax (26,231) (26,570) (27,874) (28,815) (33,734)
           
Total Shareowners' Equity 321,562  314,595  308,986  302,587  298,016 
           
Total Liabilities and Shareowners' Equity$2,934,513 $3,017,654 $3,052,051 $2,959,183 $2,819,190 
           
OTHER BALANCE SHEET DATA          
Earning Assets$2,635,501 $2,719,530 $2,761,070 $2,658,539 $2,521,056 
Interest Bearing Liabilities 1,520,705  1,606,159  1,690,972  1,658,994  1,529,057 
           
Book Value Per Diluted Share$19.14 $18.76 $18.35 $18.00 $17.40 
Tangible Book Value Per Diluted Share(1) 14.09  13.70  13.31  12.96  12.45 
           
Actual Basic Shares Outstanding 16,749  16,746  16,812  16,748  17,059 
Actual Diluted Shares Outstanding 16,797  16,773  16,840  16,809  17,128 
           
(1)Tangible book value per diluted share is a non-GAAP financial measure.  For additional information, including a reconciliation to GAAP, refer to page 4.
 


               
CAPITAL CITY BANK GROUP, INC.              
CONSOLIDATED STATEMENT OF OPERATIONS           
Unaudited              
               
            Nine Months Ended
  2019 2018 September 30,
(Dollars in thousands, except per share data) Third Quarter Second Quarter First Quarter Fourth Quarter Third Quarter 2019 2018
               
INTEREST INCOME              
Interest and Fees on Loans$23,992$23,765$22,616$22,431 $21,618$70,373$61,686
Investment Securities 3,307 3,393 3,513 3,478  3,472 10,213 9,390
Funds Sold 1,142 1,507 1,593 461  302 4,242 1,949
Total Interest Income 28,441 28,665 27,722 26,370  25,392 84,828 73,025
               
INTEREST EXPENSE              
Deposits 1,596 1,988 2,099 1,312  1,068 5,683 2,931
Short-Term Borrowings 27 31 35 53  41 93 57
Subordinated Notes Payable 558 596 608 572  568 1,762 1,595
Other Long-Term Borrowings 63 66 72 85  92 201 286
Total Interest Expense 2,244 2,681 2,814 2,022  1,769 7,739 4,869
Net Interest Income 26,197 25,984 24,908 24,348  23,623 77,089 68,156
Provision for Loan Losses 776 646 767 457  904 2,189 2,464
Net Interest Income after Provision for
  Loan Losses
 25,421 25,338 24,141 23,891  22,719 74,900 65,692
               
NONINTEREST INCOME              
Deposit Fees 4,961 4,756 4,775 5,172  5,207 14,492 14,921
Bank Card Fees 2,972 3,036 2,855 2,830  2,828 8,863 8,548
Wealth Management Fees 2,992 2,404 2,323 2,320  2,181 7,719 6,391
Mortgage Banking Fees 1,587 1,199 993 1,129  1,343 3,779 3,606
Other 1,391 1,375 1,606 1,787  1,749 4,372 4,861
Total Noninterest Income 13,903 12,770 12,552 13,238  13,308 39,225 38,327
               
NONINTEREST EXPENSE              
Compensation 16,203 16,437 16,349 16,322  15,891 48,989 47,599
Occupancy, Net 4,710 4,537 4,509 4,804  4,645 13,756 13,699
Other Real Estate, Net 6 75 363 (1,663) 347 444 1,221
Other 6,954 7,347 6,977 7,042  7,816 21,278 22,479
Total Noninterest Expense 27,873 28,396 28,198 26,505  28,699 84,467 84,998
               
OPERATING PROFIT 11,451 9,712 8,495 10,624  7,328 29,658 19,021
Income Tax Expense 2,970 2,387 2,059 2,166  1,338 7,416 1,255
NET INCOME$8,481$7,325$6,436$8,458 $5,990$22,242$17,766
               
PER SHARE DATA              
Basic Net Income$0.51$0.44$0.38$0.50 $0.35$1.33$1.04
Diluted Net Income 0.50 0.44 0.38 0.50  0.35 1.32 1.04
Cash Dividend$0.13$0.11$0.11$0.09 $0.09$0.35$0.23
AVERAGE SHARES              
Basic  16,747 16,791 16,791 16,989  17,056 16,776 17,043
Diluted  16,795 16,818 16,819 17,050  17,125 16,810 17,102
                


               
CAPITAL CITY BANK GROUP, INC.              
ALLOWANCE FOR LOAN LOSSES               
AND RISK ELEMENT ASSETS              
Unaudited              
               
            Nine Months Ended
  2019
 2018 September 30,
(Dollars in thousands, except per share data) Third Quarter Second Quarter First Quarter Fourth Quarter Third Quarter 2019  2018 
               
ALLOWANCE FOR LOAN LOSSES              
Balance at Beginning of Period$14,593 $14,120 $14,210 $14,219 $13,563 $14,210 $13,307 
Provision for Loan Losses 776  646  767  457  904  2,189  2,464 
Net Charge-Offs 1,050  173  857  466  248  2,080  1,552 
Balance at End of Period$14,319 $14,593 $14,120 $14,210 $14,219 $14,319 $14,219 
As a % of Loans 0.78% 0.79% 0.78% 0.80% 0.80% 0.78% 0.80%
As a % of Nonperforming Loans 290.55% 259.55% 279.77% 206.79% 207.06% 290.55% 207.06%
               
CHARGE-OFFS              
Commercial, Financial and Agricultural$289 $235 $95 $53 $268 $619 $591 
Real Estate - Construction 223  -  -  -  -  223  7 
Real Estate - Commercial 26  -  155  -  25  181  315 
Real Estate - Residential 44  65  264  111  106  373  669 
Real Estate - Home Equity 333  45  52  106  112.00  430  427 
Consumer 744  520  795  728  463  2,059  1,667 
Total Charge-Offs$1,659 $865 $1,361 $998 $974 $3,885 $3,676 
               
RECOVERIES              
Commercial, Financial and Agricultural$86 $58 $74 $128 $78 $218 $331 
Real Estate - Construction -  -  -  25  -  -  1 
Real Estate - Commercial 142  100  70  13  222  312  360 
Real Estate - Residential 46  223  44  106  107  313  537 
Real Estate - Home Equity 58  60  32  61  47  150  130 
Consumer 277  251  284  199  272  812  765 
Total Recoveries$609 $692 $504 $532 $726 $1,805 $2,124 
               
NET CHARGE-OFFS$1,050 $173 $857 $466 $248 $2,080 $1,552 
               
Net Charge-Offs as a % of Average Loans (1) 0.23% 0.04% 0.20% 0.10% 0.06% 0.15% 0.12%
               
RISK ELEMENT ASSETS              
Nonaccruing Loans$4,928 $5,622 $5,047 $6,872 $6,867     
Other Real Estate Owned 526  1,010  1,902  2,229  2,720     
Total Nonperforming Assets$5,454 $6,632 $6,949 $9,101 $9,587     
               
Past Due Loans 30-89 Days$5,120 $5,443 $4,682 $4,757 $3,684     
Past Due Loans 90 Days or More (accruing) -  -  -  -  126     
Classified Loans 21,323  26,406  22,219  22,889  27,039     
Performing Troubled Debt Restructuring's$18,284 $18,737 $20,791 $22,084 $28,661     
               
Nonperforming Loans as a % of Loans 0.27% 0.30% 0.28% 0.39% 0.39%    
Nonperforming Assets as a % of Loans and              
  Other Real Estate 0.30% 0.36% 0.39% 0.51% 0.54%    
Nonperforming Assets as a % of Total Assets 0.19% 0.22% 0.23% 0.31% 0.34%    
               
(1) Annualized              
               


                                            
CAPITAL CITY BANK GROUP, INC.                                           
AVERAGE BALANCE AND INTEREST RATES(1)                                             
Unaudited                                                 
                                                  
  Third Quarter 2019  Second Quarter 2019  First Quarter 2019  Fourth Quarter 2018  Third Quarter 2018  Sep 2019 YTD  Sep 2018 YTD 
(Dollars in thousands) Average
Balance
 Interest Average
Rate
  Average
Balance
 Interest Average
Rate
  Average
Balance
 Interest Average
Rate
  Average
Balance
 Interest Average
Rate
  Average
Balance
 Interest Average
Rate
  Average
Balance
 Interest Average
Rate
  Average
Balance
 Interest Average
Rate
 
ASSETS:                                                 
Loans, Net of Unearned Interest$1,837,548  24,113 5.21%$1,823,311  23,873 5.25%$1,780,406  22,718 5.18%$1,785,570  22,556 5.01%$1,747,093  21,733 4.94%$1,813,964  70,705 5.21%$1,695,695  61,994 4.89%
                                                  
Investment Securities                                                 
Taxable Investment Securities 607,363  3,249 2.13  614,775  3,301 2.15  618,127  3,387 2.20  637,735  3,325 2.08  663,639  3,290 1.98  613,382  9,936 2.16  642,260  8,758 1.82 
Tax-Exempt Investment Securities 18,041  73 1.63  29,342  116 1.58  40,575  158 1.56  50,362  193 1.54  60,952  229 1.50  29,237  347 1.59  72,656  813 1.49 
                                                  
Total Investment Securities 625,404  3,322 2.12  644,117  3,417 2.12  658,702  3,545 2.16  688,097  3,518 2.04  724,591  3,519 1.94  642,619  10,283 2.13  714,916  9,571 1.79 
                                                  
Funds Sold 207,129  1,142 2.19  251,789  1,507 2.40  265,694  1,593 2.43  80,815  461 2.26  63,608  302 1.88  241,323  4,242 2.35  153,767  1,949 1.69 
                                                  
Total Earning Assets 2,670,081 $28,577 4.25% 2,719,217 $28,797 4.25% 2,704,802 $27,856 4.17% 2,554,482 $26,535 4.12% 2,535,292 $25,554 4.00% 2,697,906 $85,230 4.22% 2,564,378 $73,514 3.83%
                                                  
Cash and Due From Banks 50,981       51,832       53,848       52,344       49,493       52,210       50,844      
Allowance for Loan Losses (14,863)      (14,513)      (14,347)      (14,642)      (14,146)      (14,576)      (13,774)     
Other Assets 253,111       254,126       252,208       257,061       256,285       253,152       258,363      
                                                  
Total Assets$2,959,310      $3,010,662      $2,996,511      $2,849,245      $2,826,924      $2,988,692      $2,859,811      
                                                  
LIABILITIES:                                                 
Interest Bearing Deposits                                                 
NOW Accounts$749,678 $1,235 0.65%$832,982 $1,623 0.78%$884,277 $1,755 0.80%$739,225 $995 0.53%$733,255 $773 0.42%$821,819 $4,613 0.75%$795,112 $2,157 0.36%
Money Market Accounts 238,565  264 0.44  237,921  265 0.45  239,516  247 0.42  248,486  216 0.34  254,440  190 0.30  238,664  775 0.43  252,082  459 0.24 
Savings Accounts 372,593  46 0.05  371,716  46 0.05  364,783  44 0.05  356,723  44 0.05  352,833  43 0.05  369,726  136 0.05  349,527  128 0.05 
Time Deposits 111,447  51 0.18  115,442  54 0.19  118,839  53 0.18  123,193  57 0.18  129,927  62 0.19  115,215  159 0.18  134,781  187 0.19 
Total Interest Bearing Deposits 1,472,283  1,596 0.43% 1,558,061  1,988 0.51% 1,607,415  2,099 0.53% 1,467,627  1,312 0.37% 1,470,455  1,068 0.30% 1,545,424  5,683 0.49% 1,531,502  2,931 0.27%
                                                  
Short-Term Borrowings 8,697  27 1.24% 9,625  31 1.30% 11,378  35 1.26% 15,424  53 1.36% 12,949  41 1.24% 9,890  93 1.27% 9,499  57 0.80%
Subordinated Notes Payable 52,887  558 4.13  52,887  596 4.46  52,887  608 4.60  52,887  572 4.23  52,887  568 4.20  52,887  1,762 4.39  52,887  1,595 3.98 
Other Long-Term Borrowings 7,158  63 3.47  7,509  66 3.53  8,199  72 3.55  9,918  85 3.40  12,729  92 2.87  7,619  201 3.52  13,218  286 2.89 
                                                  
Total Interest Bearing Liabilities 1,541,025 $2,244 0.58% 1,628,082 $2,681 0.66% 1,679,879 $2,814 0.68% 1,545,856 $2,022 0.54% 1,549,020 $1,769 0.47% 1,615,820 $7,739 0.64% 1,607,106 $4,869 0.42%
                                                  
Noninterest Bearing Deposits 1,023,472       1,007,370       957,300       944,748       921,817       996,290       895,042      
Other Liabilities 74,540       61,611       52,070       56,445       58,330       62,823       65,270      
                                                  
Total Liabilities 2,639,037       2,697,063       2,689,249       2,547,049       2,529,167       2,674,933       2,567,418      
                                                  
SHAREOWNERS' EQUITY: 320,273       313,599       307,262       302,196       297,757       313,759       292,393      
                                                  
Total Liabilities and Shareowners' Equity$2,959,310      $3,010,662      $2,996,511      $2,849,245      $2,826,924      $2,988,692      $2,859,811      
                                                  
Interest Rate Spread  $26,333 3.67%  $26,116 3.59%  $25,042 3.49%  $24,513 3.58%  $23,785 3.53%  $77,491 3.58%  $68,645 3.41%
                                                  
Interest Income and Rate Earned(1)   28,577 4.25    28,797 4.25    27,856 4.17    26,535 4.12    25,554 4.00    85,230 4.22    73,514 3.83 
Interest Expense and Rate Paid(2)   2,244 0.33    2,681 0.40    2,814 0.42    2,022 0.31    1,769 0.28    7,739 0.38    4,869 0.25 
                                                  
Net Interest Margin  $26,333 3.92%  $26,116 3.85%  $25,042 3.75%  $24,513 3.81%  $23,785 3.72%  $77,491 3.84%  $68,645 3.58%
                                                  
(1)  Interest and average rates are calculated on a tax-equivalent basis using a 21% Federal tax rate.                             
(2)  Rate calculated based on average earning assets.
                             
                              

For Information Contact:
J. Kimbrough Davis
Executive Vice President and Chief Financial Officer
850.402.7820