Capital City Bank Group Reports First Quarter 2022 Results

TALLAHASSEE, Fla., April 25, 2022 (GLOBE NEWSWIRE) — Capital City Bank Group, Inc. (NASDAQ: CCBG) today reported net income attributable to common shareowners of $8.5 million, or $0.50 per diluted share, for the first quarter of 2022 compared to net income of $6.4 million, or $0.38 per diluted share, for the fourth quarter of 2021, and $9.5 million, or $0.56 per diluted share, for the first quarter of 2021.

First Quarter 2022 HIGHLIGHTS

  • Period-end loan balances grew $54 million, or 2.8% sequentially
  • Net interest income gained momentum driven by growth in investment portfolio and higher rates
  • Noninterest income increased by 4.6% sequentially, driven by wealth management fees (insurance commission revenues)
  • Noninterest expense decreased $1.0 million, or 2.4% sequentially, attributable to lower pension plan expense
  • Continued strong credit quality resulted in no credit loss provision

“We begin 2022 with a quarter of solid financial performance,” said William G. Smith, Jr., Chairman, President and CEO of Capital City Bank Group.  “Loan growth, credit quality, rising rates, wealth management and lower expenses all contributed to this quarter’s strong performance.  Much has changed in a short period of time – rapidly escalating inflation, a pivot by the Federal Reserve toward a quicker tightening of monetary policy and the Russia-Ukraine war, along with the accompanying sanctions and questions around how the financial markets will respond to these macro-economic events. While much of this is out of our control, we believe we are well positioned to navigate through this year and beyond.  While acknowledging higher rates will generate unrealized losses in our investment portfolio, our asset-sensitive balance sheet and pension related other comprehensive loss should respond well to rising rates.  Capital City Strategic Wealth (“CCSW”) also had a strong first quarter and we continue our expansion efforts in west Florida and the northern arc of Atlanta.  While challenges remain, we continue to focus on identifying opportunities and executing strategies we believe are sustainable and add long-term value for our shareowners.”

Discussion of Operating Results

Net Interest Income/Net Interest Margin

Tax-equivalent net interest income for the first quarter of 2022 totaled $24.8 million, comparable to the fourth quarter of 2021, and $24.6 million for the first quarter of 2021. Compared to the fourth quarter of 2021, higher rates on overnight funds and growth in the investment portfolio was offset by two less calendar days during the quarter. Compared to the first quarter of 2021, the increase was due to growth in our investment portfolio which was funded by higher deposit balances.

Our net interest margin for the first quarter of 2022 was 2.55%, a decrease of five basis points from the fourth quarter of 2021 and a decrease of 30 basis points from the first quarter of 2021. Compared to both prior periods, the decrease was primarily attributable to growth in earning assets (driven by deposit inflows), which negatively impacted our margin percentage. Our net interest margin for the first quarter of 2022, excluding the impact of overnight funds in excess of $200 million, was 3.11%.

Provision for Credit Loss

We did not record a provision for credit losses for the first quarter of 2022 or the fourth quarter of 2021 and recorded a negative provision of $1.0 million for the first quarter of 2021. The lack of provision for the first quarter of 2022 reflected continued strong credit quality and slight improvement in the forecasted level of unemployment. We discuss the allowance for credit losses further below.

Noninterest Income and Noninterest Expense

Noninterest income for the first quarter of 2022 totaled $25.8 million compared to $24.7 million for the fourth quarter of 2021 and $29.8 million for the first quarter of 2021. The increase over the fourth quarter of 2021 was primarily attributable to higher wealth management fees of $2.1 million that were partially offset by lower mortgage banking revenues of $0.9 million. The increase in wealth management fees was attributable to higher insurance commission revenues. Lower loan production and a slightly lower gain on sale margin drove the decline in mortgage banking revenues. Compared to the first quarter of 2021, the decline was due to lower mortgage banking revenues attributable to lower loan production (primarily refinancing activity) and a lower gain on sale margin. Additional detail on our mortgage banking operation (CCHL) is provided on Page 11.

Noninterest expense for the first quarter of 2022 totaled $39.2 million compared to $40.2 million for the fourth quarter of 2021 and $40.5 million for the first quarter of 2021. The decrease from the fourth quarter of 2021 was primarily attributable to lower pension expense of $1.6 million (reflected in other expense) offset by higher commission expense of $0.7 million related to higher insurance revenues. The decrease in pension expense generally reflected a higher discount rate in 2022 for determining plan liabilities and strong asset returns in 2021. Compared to the first quarter of 2021, the decrease was attributable to lower commission expense of $2.6 million related to lower mortgage banking revenues offset by higher associate benefits of $0.5 million and a decrease in realized loan cost of $0.8 million (credit offset to salary expense).

Income Taxes

We realized income tax expense of $2.2 million (effective rate of 20%) for the first quarter of 2022 compared to $2.0 million (effective rate of 22%) for the fourth quarter of 2021 and $2.8 million (effective rate of 19%) for the first quarter of 2021. Tax expense for the fourth quarter of 2021 was unfavorably impacted by discrete tax expense of $0.1 million. Absent discrete items, we expect our annual effective tax rate to approximate 19%-20% in 2022. 

Discussion of Financial Condition

Earning Assets

Average earning assets totaled $3.939 billion for the first quarter of 2022, an increase of $147.5 million, or 3.9%, over the fourth quarter of 2021, and an increase of $440.9 million, or 12.6%, over the first quarter of 2021. The increase over the fourth quarter of 2021 was primarily attributable to seasonal growth in our public fund deposits. The increase compared to the first quarter of 2021 was primarily driven by higher deposit balances (see below – Funding).

We maintained an average net overnight funds (deposits with banks plus FED funds sold less FED funds purchased) sold position of $873.1 million in the first quarter of 2022 compared to $789.1 million in the fourth quarter of 2021 and $814.6 million in the first quarter of 2021. The growth compared to the fourth quarter of 2021 primarily reflected higher seasonal public fund balances. The increase compared to the first quarter of 2021 reflected higher deposit balance (see below – Funding).

Average loans held for investment (“HFI”) increased $15.3 million, or 0.8%, over the fourth quarter of 2021 and decreased $80.8 million, or 4.0%, from the first quarter of 2021. Excluding SBA PPP loans, average loans HFI increased $18.8 million compared to the fourth quarter of 2021, and increased $115.9 million compared to the first quarter of 2021. Compared to the fourth quarter of 2021, the increase in average loans (excluding SBA PPP loans) reflected growth in commercial loans (primarily institutional), residential loans, HELOCs, and consumer loans (indirect auto). Compared to the first quarter of 2021, we realized growth in commercial loans, construction loans, residential mortgages, and consumer loans (indirect auto). New loan production strengthened in the latter part of the first quarter of 2022 resulting in period end loan growth of $54 million over the fourth quarter of 2021. Increases were realized in most loan categories with the largest growth in commercial loans (primarily institutional) and consumer loans (indirect auto).

Allowance for Credit Losses

At March 31, 2022, the allowance for credit losses for HFI loans totaled $20.8 million compared to $21.6 million at December 31, 2021 and $22.0 million at March 31, 2021. Activity within the allowance is provided on Page 9. At March 31, 2022, the allowance represented 1.05% of HFI loans and provided coverage of 761% of nonperforming loans compared to 1.12% and 500%, respectively, at December 31, 2021, and 1.07% and 411%, respectively, at March 31, 2021.

Credit Quality

Overall credit quality is strong and continues to improve. Nonperforming assets (nonaccrual loans and other real estate) totaled $2.7 million at March 31, 2022 compared to $4.3 million at December 31, 2021 and $5.5 million at March 31, 2021. At March 31, 2022, nonperforming assets as a percentage of total assets totaled 0.06% compared to 0.10% at December 31, 2021 and 0.14% at March 31, 2021. Nonaccrual loans totaled $2.7 million at March 31, 2022, a $1.7 million decrease from December 31, 2021 and a $2.7 million decrease from March 31, 2021. The $4.4 million increase in classified loans over the fourth quarter of 2021, reflects one loan relationship that is in the loan workout process and has been reserved for at March 31, 2022.

Funding (Deposits/Debt)

Average total deposits were $3.714 billion for the first quarter of 2022, an increase of $164.9 million, or 4.6%, over the fourth quarter of 2021 and $474.6 million, or 14.6%, over the first quarter of 2021. Growth over the fourth quarter of 2021 was primarily attributable to an increase in seasonal public fund deposits. Compared to the first quarter 2021, strong growth occurred in our noninterest bearing deposits, NOW accounts, and savings account balances. Over the past few years, we have experienced strong core deposit growth, in addition to growth related to multiple government stimulus programs in response to the Covid-19 pandemic, such as those under the CARES Act and the American Rescue Plan Act. Given these increases, the potential exists for our deposit levels to be volatile into 2022 due to the uncertain timing of the outflows of the stimulus related balances, in addition to the frequency and degree to which the Federal Open Market Committee (FOMC) raises the overnight funds rate. It is anticipated that current liquidity levels will remain robust due to our strong overnight funds sold position. The Bank continues to strategically consider ways to safely deploy a portion of this liquidity.

Average borrowings decreased $14.6 million from the fourth quarter of 2021 and declined $36.6 million from the first quarter of 2021, as both periods reflected lower warehouse line borrowing needs to support CCHL’s loans held for sale.

Capital

Shareowners’ equity was $372.1 million at March 31, 2022 compared to $383.2 million at December 31, 2021 and $324.4 million at March 31, 2021. During the first quarter of 2022, shareowners’ equity was positively impacted by net income of $8.5 million, a $0.2 million decrease in the accumulated other comprehensive loss for our pension plan, a $1.4 million increase in the fair value of the interest rate swap related to subordinated debt, net adjustments totaling $0.5 million related to transactions under our stock compensation plans, and stock compensation accretion of $0.2 million. Shareowners’ equity was reduced by common stock dividends of $2.7 million ($0.16 per share) and a $19.1 million increase in the unrealized loss on investment securities.

At March 31, 2022, our total risk-based capital ratio was 16.98% compared to 17.15% at December 31, 2021 and 17.20% at March 31, 2021. Our common equity tier 1 capital ratio was 13.77%, 13.86%, and 13.63%, respectively, on these dates. Our leverage ratio was 8.78%, 8.95%, and 8.97%, respectively, on these dates. 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 6.61% at March 31, 2022 compared to 6.95% and 6.13% at December 31, 2021 and March 31, 2021, respectively. The slight reduction in our regulatory capital ratios was attributable to loan growth and higher asset levels.

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 $4.3 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, securities brokerage services and financial advisory services, including the sale of life insurance, risk management and asset protection services. Our bank subsidiary, Capital City Bank, was founded in 1895 and now has 57 banking offices and 86 ATMs/ITMs 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: fluctuations in inflation, interest rates, or monetary policies; the accuracy of the our financial statement estimates and assumptions; legislative or regulatory changes; 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; natural disasters, widespread health emergencies, military conflict, terrorism or other geopolitical events; changes in the stock market and other capital and real estate markets; the magnitude and duration of the ongoing COVID-19 pandemic and its impact on the global economy and financial market conditions and our business; customer acceptance of third-party products and services; increased competition and its effect on pricing; 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, 2021, and our other filings with the SEC, which are available at the SEC’s internet site (http://www.sec.gov). Forward-looking statements in this Press Release speak only as of the date of the Press Release, and we assume no obligation to update forward-looking statements or the reasons why actual results could differ.

USE OF NON-GAAP FINANCIAL MEASURES

We present a tangible common equity ratio and a tangible book value per diluted share that removes the effect of goodwill and other intangibles 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 reconciliations are provided below.

(Dollars in Thousands, except per share data) Mar 31, 2022 Dec 31, 2021 Sep 30, 2021 Jun 30, 2021 Mar 31, 2021
Shareowners’ Equity (GAAP)   $ 372,145   $ 383,166   $ 348,868   $ 335,880   $ 324,426  
Less: Goodwill and Other Intangibles (GAAP)     93,213     93,253     93,293     93,333     89,095  
Tangible Shareowners’ Equity (non-GAAP) A   278,932     289,913     255,575     242,547     235,331  
Total Assets (GAAP)     4,310,045     4,263,849     4,048,733     4,011,459     3,929,884  
Less: Goodwill and Other Intangibles (GAAP)     93,213     93,253     93,293     93,333     89,095  
Tangible Assets (non-GAAP) B $ 4,216,832   $ 4,170,596   $ 3,955,440   $ 3,918,126   $ 3,840,789  
Tangible Common Equity Ratio (non-GAAP) A/B   6.61 %   6.95 %   6.46 %   6.19 %   6.13 %
Actual Diluted Shares Outstanding (GAAP) C   16,962,362     16,935,389     16,911,715     16,901,375     16,875,719  
Tangible Book Value per Diluted Share (non-GAAP) A/C $ 16.44   $ 17.12   $ 15.11   $ 14.35   $ 13.94  

CAPITAL CITY BANK GROUP, INC.              
EARNINGS HIGHLIGHTS              
Unaudited              
               
    Three Months Ended  
(Dollars in thousands, except per share data)   Mar 31, 2022   Dec 31, 2021   Mar 31, 2021  
EARNINGS              
Net Income Attributable to Common Shareowners $ 8,455 $ 6,372 $ 9,506    
Diluted Net Income Per Share $ 0.50 $ 0.38 $ 0.56    
PERFORMANCE              
Return on Average Assets   0.80 % 0.61 % 1.01   %
Return on Average Equity   8.93   7.22   11.81    
Net Interest Margin   2.55   2.60   2.85    
Noninterest Income as % of Operating Revenue   51.11   49.96   54.90    
Efficiency Ratio   77.55 % 81.29 % 74.36   %
CAPITAL ADEQUACY              
Tier 1 Capital   15.98 % 16.14 % 16.08   %
Total Capital   16.98   17.15   17.20    
Leverage   8.78   8.95   8.97    
Common Equity Tier 1   13.77   13.86   13.63    
Tangible Common Equity (1)   6.61   6.95   6.13    
Equity to Assets   8.63 % 8.99 % 8.26   %
ASSET QUALITY              
Allowance as % of Non-Performing Loans   760.83 % 499.93 % 410.78   %
Allowance as a % of Loans HFI   1.05   1.12   1.07    
Net Charge-Offs as % of Average Loans HFI   0.16   0.02   (0.10 )  
Nonperforming Assets as % of Loans HFI and OREO   0.14   0.22   0.27    
Nonperforming Assets as % of Total Assets   0.06 % 0.10 % 0.14   %
STOCK PERFORMANCE              
High $ 28.88 $ 29.00 $ 28.98    
Low   25.96   24.77   21.42    
Close $ 26.36 $ 26.40 $ 26.02    
Average Daily Trading Volume   24,019   29,900   30,303    
               
(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                    
                     
  2022   2021
(Dollars in thousands) First Quarter   Fourth Quarter   Third Quarter   Second Quarter   First Quarter
ASSETS                    
Cash and Due From Banks $ 77,963   $ 65,313   $ 73,132   $ 78,894   $ 73,973  
Funds Sold and Interest Bearing Deposits   790,465     970,041     708,988     766,920     851,910  
Total Cash and Cash Equivalents   868,428     1,035,354     782,120     845,814     925,883  
                     
Investment Securities Available for Sale   624,361     654,611     645,844     480,890     406,245  
Investment Securities Held to Maturity   518,678     339,601     341,228     325,559     199,109  
Other Equity Securities   855     861              
Total Investment Securities   1,143,894     995,073     987,072     806,449     605,354  
                     
Loans Held for Sale   50,815     52,532     77,036     80,821     82,081  
                     
Loans Held for Investment (“HFI”):                    
Commercial, Financial, & Agricultural   230,213     223,086     218,929     292,953     413,819  
Real Estate – Construction   174,293     174,394     177,443     149,884     138,104  
Real Estate – Commercial   669,110     663,550     683,379     707,599     669,158  
Real Estate – Residential   368,020     346,756     355,958     362,018     358,849  
Real Estate – Home Equity   188,174     187,821     187,642     190,078     202,099  
Consumer   347,785     321,511     309,983     298,464     267,666  
Other Loans   6,692     13,265     6,792     6,439     7,082  
Overdrafts   1,222     1,082     1,299     1,227     950  
Total Loans Held for Investment   1,985,509     1,931,465     1,941,425     2,008,662     2,057,727  
Allowance for Credit Losses   (20,756 )   (21,606 )   (21,500 )   (22,175 )   (22,026 )
Loans Held for Investment, Net   1,964,753     1,909,859     1,919,925     1,986,487     2,035,701  
                     
Premises and Equipment, Net   82,518     83,412     84,750     85,745     86,370  
Goodwill and Other Intangibles   93,213     93,253     93,293     93,333     89,095  
Other Real Estate Owned   17     17     192     1,192     110  
Other Assets   106,407     94,349     104,345     111,618     105,290  
Total Other Assets   282,155     271,031     282,580     291,888     280,865  
Total Assets $ 4,310,045   $ 4,263,849   $ 4,048,733   $ 4,011,459   $ 3,929,884  
LIABILITIES                    
Deposits:                    
Noninterest Bearing Deposits $ 1,704,329   $ 1,668,912   $ 1,592,345   $ 1,552,864   $ 1,473,891  
NOW Accounts   1,062,498     1,070,154     926,201     970,705     993,571  
Money Market Accounts   288,877     274,611     286,065     280,805     269,041  
Regular Savings Accounts   614,599     599,811     559,714     539,477     518,373  
Certificates of Deposit   95,204     99,374     101,637     103,070     103,232  
Total Deposits   3,765,507     3,712,862     3,465,962     3,446,921     3,358,108  
                     
Short-Term Borrowings   30,865     34,557     51,410     47,200     55,687  
Subordinated Notes Payable   52,887     52,887     52,887     52,887     52,887  
Other Long-Term Borrowings   806     884     1,610     1,720     1,829  
Other Liabilities   77,323     67,735     113,720     105,534     109,487  
Total Liabilities   3,927,388     3,868,925     3,685,589     3,654,262     3,577,998  
                     
Temporary Equity   10,512     11,758     14,276     21,317     27,460  
SHAREOWNERS’ EQUITY                    
Common Stock   169     169     169     169     169  
Additional Paid-In Capital   35,188     34,423     33,876     33,560     32,804  
Retained Earnings   370,531     364,788     359,550     345,574     335,324  
Accumulated Other Comprehensive Loss, Net of Tax   (33,743 )   (16,214 )   (44,727 )   (43,423 )   (43,871 )
Total Shareowners’ Equity   372,145     383,166     348,868     335,880     324,426  
Total Liabilities, Temporary Equity and Shareowners’ Equity $ 4,310,045   $ 4,263,849   $ 4,048,733   $ 4,011,459   $ 3,929,884  
OTHER BALANCE SHEET DATA                    
Earning Assets $ 3,970,684   $ 3,949,111   $ 3,714,521   $ 3,662,852   $ 3,597,071  
Interest Bearing Liabilities   2,145,736     2,132,278     1,979,524     1,995,864     1,994,620  
Book Value Per Diluted Share $ 21.94   $ 22.63   $ 20.63   $ 19.87   $ 19.22  
Tangible Book Value Per Diluted Share(1)   16.44     17.12     15.11     14.35     13.94  
Actual Basic Shares Outstanding   16,948     16,892     16,878     16,874     16,852  
Actual Diluted Shares Outstanding   16,962     16,935     16,912     16,901     16,876  
(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                    
                     
    2022     2021  
(Dollars in thousands, except per share data)   First Quarter   Fourth Quarter   Third Quarter   Second Quarter   First Quarter
INTEREST INCOME                    
Loans, including Fees $ 22,133   $ 22,744   $ 25,885   $ 24,582   $ 23,350  
Investment Securities   2,896     2,505     2,350     2,054     1,883  
Federal Funds Sold and Interest Bearing Deposits   409     300     285     200     213  
Total Interest Income   25,438     25,549     28,520     26,836     25,446  
INTEREST EXPENSE                    
Deposits   224     213     210     208     208  
Short-Term Borrowings   192     307     317     324     412  
Subordinated Notes Payable   317     306     307     308     307  
Other Long-Term Borrowings   9     12     14     16     21  
Total Interest Expense   742     838     848     856     948  
Net Interest Income   24,696     24,711     27,672     25,980     24,498  
Provision for Credit Losses               (571 )   (982 )
Net Interest Income after Provision for Credit Losses   24,696     24,711     27,672     26,551     25,480  
NONINTEREST INCOME                    
Deposit Fees   5,191     5,300     5,075     4,236     4,271  
Bank Card Fees   3,763     3,872     3,786     3,998     3,618  
Wealth Management Fees   6,070     3,706     3,623     3,274     3,090  
Mortgage Banking Revenues   8,946     9,800     12,283     13,217     17,125  
Other   1,848     1,994     1,807     1,748     1,722  
Total Noninterest Income   25,818     24,672     26,574     26,473     29,826  
NONINTEREST EXPENSE                    
Compensation   24,856     24,783     25,245     25,378     26,064  
Occupancy, Net   6,093     5,960     6,032     5,973     5,967  
Other Real Estate, Net   25     26     (1,126 )   (270 )   (118 )
Pension Settlement   209     572     500     2,000      
Other   8,050     8,866     9,051     9,042     8,563  
Total Noninterest Expense   39,233     40,207     39,702     42,123     40,476  
OPERATING PROFIT   11,281     9,176     14,544     10,901     14,830  
Income Tax Expense   2,235     2,040     2,949     2,059     2,787  
Net Income   9,046     7,136     11,595     8,842     12,043  
Pre-Tax Income Attributable to Noncontrolling Interest   (591 )   (764 )   (1,504 )   (1,415 )   (2,537 )
NET INCOME ATTRIBUTABLE TO
COMMON SHAREOWNERS
$ 8,455   $ 6,372   $ 10,091   $ 7,427   $ 9,506  
PER COMMON SHARE                    
Basic Net Income $ 0.50   $ 0.38   $ 0.60   $ 0.44   $ 0.56  
Diluted Net Income   0.50     0.38     0.60     0.44     0.56  
Cash Dividend $ 0.16   $ 0.16   $ 0.16   $ 0.15   $ 0.15  
AVERAGE SHARES                    
Basic   16,931     16,880     16,875     16,858     16,838  
Diluted   16,946     16,923     16,909     16,885     16,862  

CAPITAL CITY BANK GROUP, INC.                    
ALLOWANCE FOR CREDIT LOSSES (“ACL”)                
AND CREDIT QUALITY                    
Unaudited                    
                     
    2022   2021
(Dollars in thousands, except per share data)   First Quarter   Fourth Quarter   Third Quarter   Second Quarter   First Quarter
ACL – HELD FOR INVESTMENT LOANS                    
Balance at Beginning of Period $ 21,606   $ 21,500   $ 22,175   $ 22,026   $ 23,816  
Provision for Credit Losses   (79 )   200     (546 )   (184 )   (2,312 )
Net Charge-Offs (Recoveries)   771     94     129     (333 )   (522 )
Balance at End of Period $ 20,756   $ 21,606   $ 21,500   $ 22,175   $ 22,026  
As a % of Loans HFI   1.05 %   1.12 %   1.11 %   1.10 %   1.07 %
As a % of Nonperforming Loans   760.83 %   499.93 %   710.39 %   433.93 %   410.78 %
ACL – DEBT SECURITIES                    
Provision for Credit Losses $   $ 20   $ 16   $   $  
ACL – UNFUNDED COMMITMENTS                    
Balance at Beginning of Period   2,897   $ 3,117   $ 2,587   $ 2,974   $ 1,644  
Provision for Credit Losses   79     (220 )   530     (387 )   1,330  
Balance at End of Period(1)   2,976     2,897     3,117     2,587     2,974  
CHARGE-OFFS                    
Commercial, Financial and Agricultural $ 73   $ 101   $ 37   $ 32   $ 69  
Real Estate – Construction                    
Real Estate – Commercial   266         405          
Real Estate – Residential       20     17     65     6  
Real Estate – Home Equity   33     9     15     74     5  
Consumer   622     254     221     230     564  
Overdrafts   780     678     1,093     440     492  
Total Charge-Offs $ 1,774   $ 1,062   $ 1,788   $ 841   $ 1,136  
RECOVERIES                    
Commercial, Financial and Agricultural $ 165   $ 148   $ 66   $ 103   $ 136  
Real Estate – Construction   8         10          
Real Estate – Commercial   29     25     169     26     645  
Real Estate – Residential   27     33     401     244     75  
Real Estate – Home Equity   58     173     46     70     124  
Consumer   183     214     334     332     311  
Overdrafts   533     375     633     399     367  
Total Recoveries $ 1,003   $ 968   $ 1,659   $ 1,174   $ 1,658  
NET CHARGE-OFFS (RECOVERIES) $ 771   $ 94   $ 129   $ (333 ) $ (522 )
Net Charge-Offs as a % of Average Loans HFI(2)   0.16 %   0.02 %   0.03 %   (0.07 )%   (0.10 )%
CREDIT QUALITY                    
Nonaccruing Loans $ 2,728   $ 4,322   $ 3,026   $ 5,110   $ 5,362  
Other Real Estate Owned   17     17     192     1,192     110  
Total Nonperforming Assets (“NPAs”) $ 2,745   $ 4,339   $ 3,218   $ 6,302   $ 5,472  
                     
Past Due Loans 30-89 Days $ 3,120   $ 3,600   $ 3,360   $ 3,745   $ 2,622  
Past Due Loans 90 Days or More   74                  
Classified Loans   22,348     17,912     16,310     19,397     20,608  
Performing Troubled Debt Restructurings $ 7,304   $ 7,643   $ 7,919   $ 8,992   $ 13,597  
                     
Nonperforming Loans as a % of Loans HFI   0.14 %   0.22 %   0.16 %   0.25 %   0.26 %
NPAs as a % of Loans HFI and Other Real Estate   0.14 %   0.22 %   0.17 %   0.31 %   0.27 %
NPAs as a % of Total Assets   0.06 %   0.10 %   0.08 %   0.16 %   0.14 %
                     
(1) Recorded in other liabilities                    
(2) Annualized                    

CAPITAL CITY BANK GROUP, INC.                                                          
AVERAGE BALANCE AND INTEREST RATES                                                              
Unaudited                                                                      
                                                                       
    First Quarter 2022     Fourth Quarter 2021     Third Quarter 2021     Second Quarter 2021     First Quarter 2021  
(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
 
ASSETS:                                                                      
Loans Held for Sale $ 43,004   $ 397   3.75 % $ 62,809   $ 522   3.29 % $ 67,753   $ 497   2.91 % $ 77,101     566   2.94 % $ 106,242   $ 970   3.70 %
Loans Held for Investment(1)   1,963,578     21,811   4.50     1,948,324     22,296   4.54     1,974,132     25,458   5.12     2,036,781     24,095   4.74     2,044,363     22,483   4.46  
                                                                       
Investment Securities                                                                      
Taxable Investment Securities   1,056,736     2,889   1.10     987,700     2,493   1.00     904,962     2,333   1.03     687,882     2,036   1.18     528,842     1,863   1.41  
Tax-Exempt Investment Securities(1)   2,409     10   1.60     3,380     17   2.07     4,332     25   2.31     3,530     23   2.58     3,844     25   2.61  
                                                                       
Total Investment Securities   1,059,145     2,899   1.10     991,080     2,510   1.01     909,294     2,358   1.03     691,412     2,059   1.19     532,686     1,888   1.42  
                                                                       
Federal Funds Sold and Interest Bearing Deposits   873,097     409   0.19     789,100     300   0.15     741,944     285   0.15     818,616     200   0.10     814,638     213   0.11  
                                                                       
Total Earning Assets   3,938,824   $ 25,516   2.63 %   3,791,313   $ 25,628   2.68 %   3,693,123   $ 28,598   3.07 %   3,623,910   $ 26,920   2.98 %   3,497,929   $ 25,554   2.96 %
                                                                       
Cash and Due From Banks   74,253               73,752               72,773               74,076               68,978            
Allowance for Loan Losses   (21,655 )             (22,127 )             (22,817 )             (22,794 )             (24,128 )          
Other Assets   275,353               284,999               283,534               281,157               278,742            
                                                                       
Total Assets $ 4,266,775             $ 4,127,937             $ 4,026,613             $ 3,956,349             $ 3,821,521            
                                                                       
LIABILITIES:                                                                      
Interest Bearing Deposits                                                                      
NOW Accounts $ 1,079,906   $ 86   0.03 % $ 963,778   $ 72   0.03 % $ 945,788   $ 72   0.03 % $ 966,649   $ 74   0.03 % $ 985,517   $ 76   0.03 %
Money Market Accounts   285,406     33   0.05     289,335     34   0.05     282,860     34   0.05     272,138     33   0.05     269,829     33   0.05  
Savings Accounts   599,359     72   0.05     573,563     71   0.05     551,383     68   0.05     529,844     64   0.05     492,252     60   0.05  
Time Deposits   97,054     33   0.14     101,037     36   0.14     102,765     36   0.14     102,995     37   0.15     102,089     39   0.15  
Total Interest Bearing Deposits   2,061,725     224   0.04 %   1,927,713     213   0.04 %   1,882,796     210   0.04 %   1,871,626     208   0.04 %   1,849,687     208   0.05 %
                                                                       
Short-Term Borrowings   32,353     192   2.40 %   46,355     307   2.63 %   49,773     317   2.53 %   51,152     324   2.54 %   67,033     412   2.49 %
Subordinated Notes Payable   52,887     317   2.40     52,887     306   2.26     52,887     307   2.27     52,887     308   2.30     52,887     307   2.32  
Other Long-Term Borrowings   833     9   4.49     1,414     12   3.50     1,652     14   3.37     1,762     16   3.38     2,736     21   3.18  
                                                                       
Total Interest Bearing Liabilities   2,147,798   $ 742   0.14 %   2,028,369   $ 838   0.16 %   1,987,108   $ 848   0.17 %   1,977,427   $ 856   0.17 %   1,972,343   $ 948   0.19 %
                                                                       
Noninterest Bearing Deposits   1,652,337               1,621,432               1,564,892               1,515,726               1,389,821            
Other Liabilities   72,166               114,657               112,707               107,801               111,050            
                                                                       
Total Liabilities   3,872,301               3,764,458               3,664,707               3,600,954               3,473,214            
Temporary Equity   10,518               13,339               20,446               26,355               21,977            
                                                                       
SHAREOWNERS’ EQUITY:   383,956               350,140               341,460               329,040               326,330            
                                                                       
Total Liabilities, Temporary Equity and Shareowners’ Equity $ 4,266,775             $ 4,127,937             $ 4,026,613             $ 3,956,349             $ 3,821,521            
                                                                       
Interest Rate Spread     $ 24,774   2.49 %     $ 24,790   2.52 %     $ 27,750   2.91 %     $ 26,064   2.81 %     $ 24,606   2.77 %
                                                                       
Interest Income and Rate Earned(1)       25,516   2.63         25,628   2.68         28,598   3.07         26,920   2.98         25,554   2.96  
Interest Expense and Rate Paid(2)       742   0.08         838   0.09         848   0.09         856   0.09         948   0.11  
                                                                       
Net Interest Margin     $ 24,774   2.55 %     $ 24,790   2.60 %     $ 27,750   2.98 %     $ 26,064   2.89 %     $ 24,606   2.85 %
                                                                       
(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.                                                              

CAPITAL CITY HOME LOANS            
MORTGAGE BANKING ACTIVITY            
Unaudited            
             
    Three Months Ended
(Dollars in thousands)   Mar 31, 2022   Dec 31, 2021   Mar 31, 2021
Net Interest Income $ 75   $ 35   $ (153 )
             
Mortgage Banking Fees   8,947     9,800     16,846  
Other   467     470     426  
Total Noninterest Income   9,414     10,270     17,272  
             
Salaries   6,024     6,643     10,276  
Other Associate Benefits   181     202     221  
Total Compensation   6,205     6,845     10,497  
             
Occupancy, Net   885     743     861  
Other   1,313     1,312     1,101  
Total Noninterest Expense   8,403     8,900     12,459  
             
Operating Profit $ 1,086   $ 1,405   $ 4,660  
             
Key Performance Metrics            
Total Loans Closed $ 246,887   $ 294,237   $ 463,126  
Total Loans Closed – Mix            
Purchase   79 %   76 %   60 %
Refinance   21 %   24 %   40 %

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

Latest Articles


By Fool Co, August 7, 2022
3 Top TSX Dividen...

No Comments

Post a Comment

Enter your email address to
subscribe to our newsletter

Top 10 Picks Of The Month

Market Movers