Capital City Bank Group, Inc. Reports Fourth Quarter and Full Year 2012 Results
Capital City Bank Group, Inc. Reports Fourth Quarter and Full Year 2012
Results
TALLAHASSEE, Fla., Jan. 29, 2013 (GLOBE NEWSWIRE) -- Capital City Bank Group,
Inc. (Nasdaq:CCBG) today reported net income of $1.9 million, or $0.11 per
diluted share, for the fourth quarter of 2012, compared to net income of $1.1
million, or $0.07 per diluted share, for the third quarter of 2012 and a net
loss of $0.5 million, or $0.03 per diluted share, for the fourth quarter of
2011. For the full year 2012, CCBG reported net income of $0.1 million, or
$0.01 per diluted share, compared to net income of $4.9 million, or $0.29 per
diluted share in 2011.
Compared to the third quarter of 2012, the improvement in earnings reflects
lower noninterest expense of $0.7 million, a reduction in the loan loss
provision of $0.1 million, and an increase in operating revenues of $0.1
million, partially offset by higher income taxes of $0.1 million. Compared to
the fourth quarter of 2011, the increase in earnings was due to a lower loan
loss provision of $4.8 million and a decline in noninterest expense of $1.6
million, partially offset by a reduction in operating revenues of $1.6 million
and higher income taxes of $2.4 million.
For the full year 2012, the decline in earnings was attributable to lower
operating revenues of $11.3 million partially offset by a lower loan loss
provision of $2.8 million, a decrease in noninterest expense of $1.7 million
and a reduction in income taxes of $2.0 million. 2011 performance reflects the
sale of our Visa Class B shares which resulted in a $2.6 million net gain
($3.2 million pre-tax included in noninterest income and a swap liability of
$0.6 million included in noninterest expense).
"I am pleased with the fourth quarter results, which enabled Capital City Bank
Group to be profitable for the year," said William G. Smith, Jr., chairman,
president and CEO. "Though the market is still choppy, I am encouraged by
fourth quarter improvements, which included lower credit costs and modest, yet
noteworthy, growth in operating revenue. Nonperforming assets declined $10
million or 8 percent, and credit costs were down $0.8 million or 14 percent
for the quarter. Credit metrics continue to improve and credit quality remains
a top priority. With OREO sales exceeding $8 million in the fourth quarter and
topping $28 million for the year, we believe a retail strategy focused on the
disposition of other real estate owned continues to be in the best interest of
our shareowners. Despite weak demand, loans declined at a slower pace in the
fourth quarter, reinforcing my belief that our markets continue to exhibit
signs of recovery as shown by decreasing unemployment and a firming of home
prices. As we head into 2013, I am encouraged by these conditions, pleased
with our progress and remain optimistic about our future."
The Return on Average Assets was 0.29% and the Return on Average Equity was
2.95% for the fourth quarter of 2012. These metrics were 0.17% and 1.77% for
the third quarter of 2012, and -0.08% and -0.80% for the fourth quarter of
2011, respectively.
For the full year 2012, the Return on Average Assets was 0.00% and the Return
on Average Equity was 0.04% compared to 0.19% and 1.86%, respectively, for the
full year of 2011.
Discussion of Financial Condition
Average earning assets were $2.179 billion for the fourth quarter of 2012, a
decrease of $30.2 million, or 1.4%, from the third quarter of 2012, and an
increase of $32.5 million, or 1.5%, from the fourth quarter of 2011. As
compared to the third quarter of 2012, the decline in average earning assets
is attributable to a lower level of overnight funds resulting from a seasonal
decline in deposits and the resolution of problem loans. The shift in the mix
of earning assets continued as the loan portfolio declined when compared to
the prior quarter. The increase in average earning assets compared to the
fourth quarter of 2011 primarily reflects a higher level of public funds.
We maintained an average net overnight funds (deposits with banks plus fed
funds sold less fed funds purchased) sold position of $366.0 million during
the fourth quarter of 2012 compared to an average net overnight
funds sold position of $386.0 million in the third quarter of 2012 and an
average overnight funds sold position of $191.8 million in the fourth quarter
of 2011. The lower balance when compared to the third quarter of 2012
reflects lower levels of deposits, primarily public funds and certificates of
deposit, partially offset by a decrease in the loan portfolio. The higher
balances when compared to the fourth quarter of 2011 primarily reflect the
decline in the loan portfolio.
When compared to the third quarter of 2012 and the fourth quarter of 2011,
average loans declined by $23.0 million and $128.4 million, respectively. Most
loan categories have experienced declines with the reduction primarily in the
commercial real estate and residential categories. Our core loan portfolio
continues to be impacted by normal amortization and a higher level of payoffs
that have outpaced our new loan production. New loan production continues to
be impacted by weak loan demand attributable to the trend toward consumers and
businesses deleveraging, the lack of consumer confidence, and a persistently
sluggish economy.
The resolution of problem loans (which has the effect of lowering the loan
portfolio as loans are either charged off or transferred to other real estate
owned "OREO") also contributed to the overall decline. During the fourth
quarter of 2012, loan charge-offs and loans transferred to OREO accounted for
$13.7 million. This more than offset the net reduction in total loans of $12.0
million, which occurred in the fourth quarter of 2012. During the full year
2012, loan resolution accounted for $45.0 million, or 42%, of the net
reduction in loans of $107.4 million^1.
Average total deposits were $2.051 billion for the fourth quarter of 2012, a
decrease of $24.4 million, or 1.2%, from the third quarter of 2012 and higher
by $18.1 million, or 0.9%, over the fourth quarter of 2011. The decrease in
deposits when compared to the third quarter of 2012 resulted from lower public
funds, money markets and certificates of deposit, partially offset by growth
in noninterest bearing accounts and regular savings. Compared to the fourth
quarter of 2011, the increase was driven primarily by higher public fund
balances, savings and noninterest bearing deposits. This was partially offset
by a reduction of certificates of deposit. The seasonal low in public fund
balances occurred during the fourth quarter and these balances are anticipated
to increase through the first quarter of 2013.
Our mix of deposits continues to improve as higher cost certificates of
deposit are replaced with lower rate non-maturity deposits and noninterest
bearing demand accounts. Prudent pricing discipline will continue to be the
key to managing our mix of deposits. Therefore, we do not attempt to compete
with higher rate paying competitors for deposits.
Borrowings decreased by $9.1 million when compared to the third quarter of
2012 as a result of lower balances in repurchase agreements, and were lower by
$1.0 million when compared to the fourth quarter of 2011, as a result of
normal amortization in FHLB advances.
Nonperforming assets (nonaccrual loans and OREO) totaled $117.7 million at
year-end 2012 compared to $127.2 million at the end of the third quarter of
2012 and $137.6 million at year-end 2011. Nonaccrual loans totaled $64.2
million at year-end 2012, a decrease of $9.9 million from the third quarter of
2012 and $10.8 million from year-end 2011, reflective of loan resolutions
(charge-offs and transfer of loans to OREO) and loans restored to an accrual
status, which outpaced gross additions. Gross additions slowed significantly
year over year, by approximately $45 million. The balance of OREO totaled
$53.4 million at year-end 2012, a $0.2 million increase over the third quarter
of 2012 and a decrease of $9.2 million from year-end 2011. We continued to
experience progress during 2012 in our efforts to dispose of OREO selling
properties totaling $28.2 million compared to $27.8 million in
2011. Nonperforming assets represented 4.47% of total assets at December 31,
2012 compared to 5.10% at September 30, 2012 and 5.21% at December 31, 2011.
Equity capital was $246.9 million as of December 31, 2012, compared to $250.4
million as of September 30, 2012 and $251.9 million as of December 31,
2011. Our leverage ratio was 9.90%, 9.83%, and 10.26%, respectively, for these
periods. Further, our risk-adjusted capital ratio of 15.72% at December 31,
2012 exceeds the 10.0% threshold to be designated as "well-capitalized" under
the risk-based regulatory guidelines. At December 31, 2012, our tangible
common equity ratio was 6.35%, compared to 6.86% at September 30, 2012 and
6.51% at December 31, 2011. The tangible common equity ratio was impacted by a
$5.5 million unfavorable variance in the pension component of our other
comprehensive income. This unfavorable variance was driven by a reduction in
our pension plan's discount rate due to a decline in market rates, and a lower
than anticipated return on plan assets.
Discussion of Operating Results
Tax equivalent net interest income for the fourth quarter of 2012 was $20.7
million compared to $21.2 million for the third quarter of 2012 and $22.6
million for the fourth quarter of 2011. For the full year 2012, tax
equivalent net interest income totaled $84.9 million compared to $92.8 million
in 2011. Factors affecting net interest income relative to the third quarter
of 2012 include a reduction in loan income attributable to declining loan
balances and unfavorable asset repricing. Year over year, the decrease was due
to reduction in loan income attributable to lower portfolio balances and
unfavorable asset repricing, which was partially offset by a reduction in
interest expense. The lower interest expense is primarily attributable to
certificates of deposit and reflects both lower balances and favorable
repricing.
The decline in the loan portfolio, coupled with the low rate environment
continues to put pressure on our net interest income. The loan portfolio
yield is declining as the existing portfolio reprices. Lowering our cost of
funds, to the extent we can, and continuing to shift the mix of our deposits
will help to partially mitigate the unfavorable impact of weak loan demand and
repricing, although the impact is expected to be minimal.
The net interest margin for the fourth quarter of 2012 was 3.78%, a decrease
of 4 basis points from the third quarter of 2012 and a decline of 39 basis
points from the fourth quarter of 2011. For the full year 2012, the margin
declined by 37 basis points to 3.81%. The decrease in the margin for all
comparable periods is attributable to the shift in our earning asset mix and
unfavorable asset repricing, partially offset by a lower average cost of
funds.
The provision for loan losses for the fourth quarter of 2012 was $2.8 million
compared to $2.9 million in the third quarter of 2012 and $7.6 million for the
fourth quarter of 2011. For the full year 2012, the loan loss provision
totaled $16.2 million compared to $19.0 million for 2011. Slower problem loan
migration, lower loan loss experience, and improved credit metrics resulted in
a lower level of loan loss provision for both the second half of 2012 and the
full year 2012. Net charge-offs for the fourth quarter of 2012 totaled $3.8
million, or 1.00% of average loans, compared to $2.6 million, or 0.66%, in the
third quarter of 2012, and $6.2 million, or 1.50%, in the fourth quarter of
2011. For 2012, our net charge-offs totaled $18.0 million, or 1.16%, of
average loans, compared to $23.4 million, or 1.39%, for 2011. Over the last
five years, we have recorded a cumulative loan loss provision totaling $131.5
million, or 6.9%, of beginning loans and have recognized cumulative net
charge-offs of $120.0 million, or 6.3%. At year-end 2012, the allowance for
loan losses of $29.2 million was 1.93% of outstanding loans (net of
overdrafts) and provided coverage of 45% of nonperforming loans compared to
1.97% and 41%, respectively, at the end of the third quarter of 2012, and
1.91% and 41%, respectively, at year-end 2011.
Noninterest income for the fourth quarter of 2012 totaled $14.1 million, an
increase of $0.5 million, or 4.0%, over the third quarter of 2012 and an
increase of $0.2 million, or 1.7%, over the fourth quarter of 2011. The
increase over the third quarter of 2012 reflects higher deposit fees of $0.4
million and wealth management fees (trust fees and retail brokerage fees) of
$0.1 million. The favorable variance compared to the fourth quarter of 2011
was driven by higher deposit fees of $0.2 million. For the full year 2012,
noninterest income totaled $55.2 million, a decrease of $3.7 million, or 6.2%,
from 2011 attributable to a reduction in other income of $4.6 million, data
processing fees of $0.5 million, and wealth management fees of $0.4 million,
partially offset by higher deposit fees of $0.3 million, mortgage banking fees
of $0.9 million and bank card fees of $0.6 million. The decline in other
income was primarily attributable to a $3.2 million gain from the sale of our
Visa stock recognized during 2011 and to a lesser extent a reduction in gains
from the sale of other real estate properties. Data processing fees declined
due to a reduction in the number of banks that we process for as two of our
user banks were acquired and discontinued service in early 2011. The reduction
in wealth management fees reflects a decline in trust fees reflective of a
lower level of assets under management due to account distributions, and a
decrease in retail brokerage fees due to lower client trading activity. The
increase in deposit fees was driven by a lower level of charged off checking
accounts and improved fee collection experience. Increased loan origination
volume drove the higher level of mortgage banking fees reflecting increased
home purchase activity in our markets. The increase in bank card fees was
attributable to an increase in active cards and higher card utilization.
Noninterest expense for the fourth quarter of 2012 totaled $29.5 million, a
decrease of $0.7 million, or 2.4%, from the third quarter of 2012 and a
decrease of $1.6 million, or 5.3%, from the fourth quarter of 2011. The
decrease from the third quarter was driven by a decrease in OREO expense of
$0.7 million, occupancy expense of $0.2 million, and other expense of $0.1
million, partially offset by higher compensation expense of $0.3 million. The
reduction in OREO expense was driven by a lower level of valuation adjustments
and to a lesser extent a reduction in property carrying costs. Occupancy
expense declined due to lower property tax expense and utilities expense. The
reduction in other expense reflects a decrease in printing and supplies due to
lower usage and a lower level of operational losses. The increase in
compensation was attributable to higher pension plan expense and stock
compensation expense partially offset by lower expense for cash
incentives. Compared to the fourth quarter of 2011, the decrease was primarily
attributable to lower OREO expense of $1.5 million and other expense of $0.7
million partially offset by higher compensation expense of $0.5 million. A
lower level of valuation adjustments and property carrying costs drove the
reduction in OREO expense. Other expense declined due to a reduction in
advertising expense and lower expense for the Visa swap liability associated
with the sale of our Visa shares during 2011. A higher level of expense for
our pension plan and stock compensation plans partially offset by lower
associate salary expense drove the unfavorable variance in
compensation.
For the full year 2012, noninterest expense totaled $124.6 million, a decrease
of $1.7 million, or 1.3%, from 2011 primarily attributable to a decline in
OREO expense of $1.2 million, occupancy expense of $0.5 million, intangible
amortization of $0.2 million, and other expense of $0.7 million, partially
offset by higher compensation expense of $0.6 million and furniture/equipment
expense of $0.3 million. A lower level of valuation adjustments drove the
decline in OREO expense. Occupancy expense decreased due to a decline in
building maintenance/repairs and utility expense reflecting our efforts to
re-negotiate vendor contracts and proactively manage our energy costs. The
reduction in intangible amortization expense reflects the full amortization of
certain core deposit intangibles related to past acquisitions. Other expense
decreased primarily due to lower expense for advertising of $0.7 million, FDIC
insurance of $0.4 million, postage of $0.2 million, and miscellaneous expense
of $0.7 million, partially offset by higher professional fees of $1.0 million
and processing costs of $0.3 million. The decline in advertising expense
reflects a lower level of brand promotional activities and improved control
over public relations costs. FDIC insurance costs declined due to maintenance
of a lower assessment base during 2012. The reduction in postage primarily
reflects migration of clients to electronic statements and improved control
over mailing activities. Lower expense for the Visa swap liability associated
with the sale of our Visa shares during 2011 drove the decline in
miscellaneous expense. The increase in professional fees was primarily due to
higher consulting fees and external audit fees. The aforementioned unfavorable
variance in compensation expense reflects higher pension plan expense that was
partially offset by lower expense for associate salaries and performance
compensation. Utilization of a lower discount rate in 2012 due to lower
long-term bond interest rates drove the aforementioned increase in pension
plan expense. Higher software and maintenance costs for newly implemented
information systems drove the unfavorable variance in furniture/equipment
expense.
We realized income tax expense of $0.6 million in the fourth quarter of 2012
compared to income tax expense of $0.4 million for the third quarter of 2012
and a tax benefit of $1.9 million for the fourth quarter of 2011. For the
full year 2012, we realized a tax benefit of $1.3 million compared to income
tax expense of $0.6 million for 2011. The decrease in the tax provision year
over year primarily reflects lower operating profits and to a lesser extent
the resolution of certain tax contingencies during the fourth quarter of 2012.
ABOUT CAPITAL CITY BANK GROUP
Capital City Bank Group, Inc. (Nasdaq:CCBG) is one of the largest publicly
traded bank holding companies headquartered in Florida and has approximately
$2.6 billion in assets. The Company provides a full range of banking services,
including traditional deposit and credit services, asset management, trust,
mortgage banking, merchant services, bankcards, data processing and securities
brokerage services. The Company's bank subsidiary, Capital City Bank, was
founded in 1895 and now has 69 locations and 72 ATMs in Florida, Georgia and
Alabama. For more information about Capital City Bank Group, Inc., visit
www.ccbg.com.
FORWARD-LOOKING STATEMENTS
Forward-looking statements in this Press Release are based on current plans
and expectations that are subject to uncertainties and risks, which could
cause the Company's future results to differ materially. The following
factors, among others, could cause the Company's actual results to differ: the
Company's need and our ability to incur additional debt or equity financing;
the accuracy of the Company's financial statement estimates and assumptions,
including the estimate used for the Company's loan loss provision and deferred
tax valuation allowance; continued depression of the market value of the
Company that could result in an impairment of goodwill; legislative or
regulatory changes, including the Dodd-Frank Act and Basel III; the strength
of the U.S. economy and the local economies where the Company conducts
operations; the frequency and magnitude of foreclosure of the Company's loans;
restrictions on our operations, including the inability to pay dividends
without our regulators' consent; the effects of the health and soundness of
other financial institutions, including the FDIC's need to increase Deposit
Insurance Fund assessments; the effects of the Company's lack of a diversified
loan portfolio, including the risks of geographic and industry concentrations;
harsh weather conditions and man-made disasters; fluctuations in inflation,
interest rates, or monetary policies; changes in the stock market and other
capital and real estate markets; customer acceptance of third-party products
and services; increased competition and its effect on pricing, including the
impact on our net interest margin from the repeal of Regulation Q; negative
publicity and the impact on our reputation; 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, 2011, and the Company's other filings with the SEC, which are
available at the SEC's internet site (http://www.sec.gov). Forward-looking
statements in this Press Release speak only as of the date of the Press
Release, and the Company assumes no obligation to update forward-looking
statements or the reasons why actual results could differ.
^[1]The reductions in loan portfolio balances stated in this paragraph are
based on "as of" balances, not averages.
CAPITAL CITY BANK GROUP,
INC.
EARNINGS HIGHLIGHTS
Unaudited
Three Months Ended Twelve Months Ended
(Dollars in thousands, Dec 31, Sep 30, Dec 31, Dec 31, Dec 31,
except per share data) 2012 2012 2011 2012 2011
EARNINGS
Net Income (Loss) $ 1,874 $ 1,121 $ (535) $ 108 $ 4,897
Net Income (Loss) Per Common $ 0.11 $ 0.07 $ (0.03) $ 0.01 $ 0.29
Share
PERFORMANCE
Return on Average Equity 2.95% 1.77% -0.80% 0.04% 1.86%
Return on Average Assets 0.29% 0.17% -0.08% 0.00% 0.19%
Net Interest Margin 3.78% 3.82% 4.17% 3.81% 4.18%
Noninterest Income as % of 40.81% 39.31% 38.34% 39.66% 39.13%
Operating Revenue
Efficiency Ratio 84.68% 86.89% 85.37% 88.72% 83.24%
CAPITAL ADEQUACY
Tier 1 Capital Ratio 14.35% 14.43% 13.96% 14.35% 13.96%
Total Capital Ratio 15.72% 15.80% 15.32% 15.72% 15.32%
Tangible Common Equity Ratio 6.35% 6.86% 6.51% 6.35% 6.51%
Leverage Ratio 9.90% 9.83% 10.26% 9.90% 10.26%
Equity to Assets 9.37% 10.04% 9.54% 9.37% 9.54%
ASSET QUALITY
Allowance as % of 45.42% 40.80% 41.37% 45.42% 41.37%
Non-Performing Loans
Allowance as a % of Loans 1.93% 1.97% 1.91% 1.93% 1.91%
Net Charge-Offs as % of 1.00% 0.66% 1.50% 1.16% 1.39%
Average Loans
Nonperforming Assets as % of 7.47% 8.02% 8.14% 7.47% 8.14%
Loans and ORE
Nonperforming Assets as % of 4.47% 5.10% 5.21% 4.47% 5.21%
Total Assets
STOCK PERFORMANCE
High $ 11.91 $ 10.96 $ 11.11 $ 11.91 $ 13.80
Low 9.04 7.00 9.43 6.35 9.43
Close 11.37 10.64 9.55 11.37 9.55
Average Daily Trading Volume $ 20,045 $ 23,737 $ 33,026 $ 26,622 $ 32,096
CAPITAL CITY BANK
GROUP, INC.
CONSOLIDATED STATEMENT OF
FINANCIAL CONDITION
Unaudited
2012 2011
(Dollars in Fourth Third Second First Fourth
thousands) Quarter Quarter Quarter Quarter Quarter
ASSETS
Cash and Due From $ 66,238 $ 53,076 $ 57,477 $ 50,567 $ 54,953
Banks
Funds Sold and
Interest Bearing 443,494 314,318 434,814 418,678 330,361
Deposits
Total Cash and 509,732 367,394 492,291 469,245 385,314
Cash Equivalents
Investment
Securities, 296,985 288,166 280,753 284,490 307,149
Available-for-Sale
Loans, Net of
Unearned Interest
Commercial,
Financial, & 139,850 135,939 136,736 132,119 130,879
Agricultural
Real Estate - 43,740 43,278 46,803 34,554 26,367
Construction
Real Estate - 613,625 609,671 605,819 624,528 639,140
Commercial
Real Estate - 318,400 341,044 353,198 364,123 386,877
Residential
Real Estate - Home 236,263 239,446 242,929 240,800 244,263
Equity
Consumer 150,728 154,389 162,899 174,132 186,216
Other Loans 11,547 6,891 5,638 6,555 12,495
Overdrafts 7,149 2,637 2,214 2,073 2,446
Total Loans, Net
of Unearned 1,521,302 1,533,295 1,556,236 1,578,884 1,628,683
Interest
Allowance for Loan (29,167) (30,222) (29,929) (31,217) (31,035)
Losses
Loans, Net 1,492,135 1,503,073 1,526,307 1,547,667 1,597,648
Premises and 107,092 109,003 110,302 111,408 110,991
Equipment, Net
Intangible Assets 85,053 85,161 85,269 85,376 85,484
Other Real Estate 53,426 53,172 58,059 58,100 62,600
Owned
Other Assets 89,561 87,815 92,869 103,992 92,126
Total Other Assets 335,132 335,151 346,499 358,876 351,201
Total Assets $ 2,633,984 $ 2,493,784 $ 2,645,850 $ 2,660,278 $ 2,641,312
LIABILITIES
Deposits:
Noninterest $ 609,235 $ 596,660 $ 623,130 $ 605,774 $ 618,317
Bearing Deposits
NOW Accounts 842,435 703,327 789,103 845,149 828,990
Money Market 267,766 285,084 288,352 283,224 276,910
Accounts
Regular Savings 184,541 181,523 178,388 172,262 158,462
Accounts
Certificates of 241,019 254,000 271,413 279,295 289,840
Deposit
Total Deposits 2,144,996 2,020,594 2,150,386 2,185,704 2,172,519
Short-Term 47,435 42,388 69,449 42,188 43,372
Borrowings
Subordinated Notes 62,887 62,887 62,887 62,887 62,887
Payable
Other Long-Term 46,859 38,126 38,846 42,826 44,606
Borrowings
Other Liabilities 84,918 79,427 75,260 75,876 65,986
Total Liabilities 2,387,095 2,243,422 2,396,828 2,409,481 2,389,370
SHAREOWNERS'
EQUITY
Common Stock 172 172 172 172 172
Additional Paid-In 38,707 38,493 38,260 38,101 37,838
Capital
Retained Earnings 237,569 235,694 234,573 236,299 237,461
Accumulated Other
Comprehensive (29,559) (23,997) (23,983) (23,775) (23,529)
Loss, Net of Tax
Total Shareowners' 246,889 250,362 249,022 250,797 251,942
Equity
Total Liabilities
and Shareowners' $ 2,633,984 $ 2,493,784 $ 2,645,850 $ 2,660,278 $ 2,641,312
Equity
OTHER BALANCE
SHEET DATA
Earning Assets $ 2,261,781 $ 2,135,779 $ 2,271,803 $ 2,282,053 $ 2,266,193
Intangible Assets
Goodwill 84,811 84,811 84,811 84,811 84,811
Core Deposits 19 79 139 198 258
Other 223 271 319 367 415
Interest Bearing 1,692,942 1,567,335 1,698,438 1,727,831 1,705,066
Liabilities
Book Value Per $ 14.31 $ 14.54 $ 14.48 $ 14.60 $ 14.68
Diluted Share
Tangible Book
Value Per Diluted 9.38 9.59 9.52 9.63 9.70
Share
Actual Basic 17,232 17,223 17,198 17,182 17,160
Shares Outstanding
Actual Diluted 17,259 17,223 17,198 17,182 17,161
Shares Outstanding
CAPITAL CITY
BANK GROUP,
INC.
CONSOLIDATED
STATEMENT OF
OPERATIONS
Unaudited
Twelve Months Ended
2012 2011 December 31,
(Dollars in
thousands, Fourth Third Second First Fourth 2012 2011
except per Quarter Quarter Quarter Quarter Quarter
share data)
INTEREST
INCOME
Interest and $ 20,756 $ 21,274 $ 21,359 $ 22,005 $ 22,915 $ 85,394 $ 94,944
Fees on Loans
Investment 808 798 834 900 902 3,340 3,968
Securities
Funds Sold 223 254 244 225 95 946 547
Total
Interest 21,787 22,326 22,437 23,130 23,912 89,680 99,459
Income
INTEREST
EXPENSE
Deposits 429 480 556 643 699 2,108 3,947
Short-Term 69 71 48 8 6 196 305
Borrowings
Subordinated 351 372 372 382 358 1,477 1,380
Notes Payable
Other
Long-Term 383 372 396 436 452 1,587 1,905
Borrowings
Total
Interest 1,232 1,295 1,372 1,469 1,515 5,368 7,537
Expense
Net Interest 20,555 21,031 21,065 21,661 22,397 84,312 91,922
Income
Provision for 2,766 2,864 5,743 4,793 7,600 16,166 18,996
Loan Losses
Net Interest
Income after 17,789 18,167 15,322 16,868 14,797 68,146 72,926
Provision for
Loan Losses
NONINTEREST
INCOME
Service
Charges on 6,764 6,406 6,313 6,309 6,530 25,792 25,451
Deposit
Accounts
Data
Processing 671 687 680 675 743 2,713 3,230
Fees
Asset
Management 1,100 1,020 1,020 1,015 1,124 4,155 4,364
Fees^(1)
Retail
Brokerage 718 666 884 758 776 3,026 3,251
Fees^(1)
Mortgage 910 978 864 848 845 3,600 2,675
Banking Fees
Interchange 1,726 1,619 1,580 1,526 1,399 6,451 5,622
Fees ^ (2)
ATM/Debit
Card Fees 886 997 1,204 1,245 1,098 4,332 4,519
^(2)
Other 1,343 1,202 1,361 1,210 1,358 5,116 9,736
Total
Noninterest 14,118 13,575 13,906 13,586 13,873 55,185 58,848
Income
NONINTEREST
EXPENSE
Compensation 15,772 15,510 16,117 16,843 15,260 64,242 63,642
Occupancy, 2,200 2,332 2,276 2,266 2,284 9,074 9,622
Net
Furniture and 2,212 2,245 2,245 2,201 2,097 8,903 8,558
Equipment
Intangible 108 108 107 108 107 431 675
Amortization
Other Real 1,917 2,616 3,460 3,513 3,425 11,506 12,677
Estate
Other 7,259 7,390 8,088 7,666 7,930 30,403 31,074
Total
Noninterest 29,468 30,201 32,293 32,597 31,103 124,559 126,248
Expense
OPERATING
PROFIT 2,439 1,541 (3,065) (2,143) (2,433) (1,228) 5,526
(LOSS)
Income Tax
Expense 564 420 (1,339) (981) (1,898) (1,336) 629
(Benefit)
NET INCOME $ 1,875 $ 1,121 $ (1,726) $ (1,162) $ (535) $ 108 $ 4,897
(LOSS)
PER SHARE
DATA
Basic Income $ 0.11 $ 0.07 $ (0.10) $ (0.07) $ (0.03) $ 0.01 $ 0.29
(Loss)
Diluted $ 0.11 $ 0.07 $ (0.10) $ (0.07) $ (0.03) $ 0.01 $ 0.29
Income (Loss)
Cash 0.000 0.000 0.000 0.000 0.000 0.000 0.300
Dividends
AVERAGE
SHARES
Basic 17,229 17,215 17,192 17,181 17,157 17,205 17,140
Diluted 17,256 17,228 17,192 17,181 17,157 17,220 17,140
^(1) Together referred
to as "Wealth
Management Fees"
^(2) Together
referred to
as "Bank Card
Fees"
CAPITAL CITY BANK
GROUP, INC.
ALLOWANCE FOR LOAN
LOSSES
AND NONPERFORMING
ASSETS
Unaudited
2012 2012 2012 2012 2011
(Dollars in thousands, Fourth Third Second First Fourth
except per share data) Quarter Quarter Quarter Quarter Quarter
ALLOWANCE FOR LOAN
LOSSES
Balance at Beginning of $ 30,222 $ 29,929 $ 31,217 $ 31,035 $ 29,658
Period
Provision for Loan 2,766 2,864 5,743 4,793 7,600
Losses
Net Charge-Offs 3,821 2,571 7,031 4,611 6,223
Balance at End of $ 29,167 $ 30,222 $ 29,929 $ 31,217 $ 31,035
Period
As a % of Loans 1.93% 1.97% 1.93% 1.98% 1.91%
As a % of Nonperforming 45.42% 40.80% 40.03% 39.65% 41.37%
Loans
CHARGE-OFFS
Commercial, Financial $ 166 $ 331 $ 57 $ 268 $ 634
and Agricultural
Real Estate - 227 127 275 -- 25
Construction
Real Estate - 468 512 3,519 1,532 2,443
Commercial
Real Estate - 2,877 981 3,894 1,967 2,755
Residential
Real Estate - Home 745 834 425 892 205
Equity
Consumer 488 355 550 732 879
Total Charge-Offs $ 4,971 $ 3,140 $ 8,720 $ 5,391 $ 6,941
RECOVERIES
Commercial, Financial $ 87 $ 53 $ 83 $ 67 $ 242
and Agricultural
Real Estate - 7 9 27 -- --
Construction
Real Estate - 468 34 42 138 87
Commercial
Real Estate - 83 76 969 163 34
Residential
Real Estate - Home 250 15 116 18 13
Equity
Consumer 255 382 452 394 342
Total Recoveries $ 1,150 $ 569 $ 1,689 $ 780 $ 718
NET CHARGE-OFFS $ 3,821 $ 2,571 $ 7,031 $ 4,611 $ 6,223
Net Charge-Offs as a % 1.00% 0.66% 1.80% 1.16% 1.50%
of Average Loans^(1)
RISK ELEMENT ASSETS
Nonaccruing Loans $ 64,222 $ 74,075 $ 74,770 $ 78,726 $ 75,023
Other Real Estate Owned 53,426 53,172 58,059 58,100 62,600
Total Nonperforming $ 117,648 $ 127,247 $ 132,829 $ 136,826 $ 137,623
Assets
Past Due Loans 30-89 $ 9,934 $ 12,923 $ 16,695 $ 9,193 $ 19,425
Days
Past Due Loans 90 Days -- -- -- 25 224
or More
Performing Troubled $ 47,474 $ 45,973 $ 38,734 $ 37,373 $ 37,675
Debt Restructurings
Nonperforming Loans as 4.22% 4.83% 4.80% 4.99% 4.61%
a % of Loans
Nonperforming Assets as
a % of
Loans and Other Real 7.47% 8.02% 8.23% 8.36% 8.14%
Estate
Nonperforming Assets as 42.62% 45.35% 47.62% 48.52% 48.63%
a % of Capital^(2)
Nonperforming Assets as 4.47% 5.10% 5.02% 5.14% 5.21%
a % of Total Assets
(1) Annualized
(2) Capital includes
allowance for loan
losses
CAPITAL CITY
BANK GROUP,
INC.
AVERAGE
BALANCE AND
INTEREST
RATES^(1)
Unaudited
Fourth Quarter 2012 Third Quarter 2012 Second Quarter 2012
(Dollars in Average Interest Average Average Interest Average Average Interest Average
thousands) Balance Rate Balance Rate Balance Rate
ASSETS:
Loans, Net
of Unearned $ 1,518,280 20,837 5.46% $ 1,541,262 21,366 5.51% $ 1,570,827 21,456 5.49%
Interest
Investment
Securities
Taxable
Investment 219,985 697 1.26 214,431 691 1.28 216,952 730 1.35
Securities
Tax-Exempt
Investment 74,647 172 0.92 67,446 163 0.97 63,715 161 1.01
Securities
Total
Investment 294,632 869 1.17 281,877 854 1.21 280,667 891 1.27
Securities
Funds Sold 366,034 223 0.24 386,027 254 0.26 411,353 244 0.24
Total
Earning 2,178,946 $ 21,929 4.00% 2,209,166 $ 22,474 4.05% 2,262,847 $ 22,591 4.01%
Assets
Cash and Due 51,344 47,207 47,711
From Banks
Allowance
for Loan (30,605) (30,260) (31,599)
Losses
Other Assets 334,326 340,126 345,458
Total Assets $ 2,534,011 $ 2,566,239 $ 2,624,417
LIABILITIES:
Interest
Bearing
Deposits
NOW Accounts $714,682 $131 0.07% $740,178 $144 0.08% $809,172 $167 0.08%
Money Market 275,458 57 0.08 287,250 60 0.08 280,371 63 0.09
Accounts
Savings 182,760 23 0.05 179,445 23 0.05 174,923 21 0.05
Accounts
Time 247,679 218 0.35 263,007 253 0.38 274,497 305 0.45
Deposits
Total
Interest 1,420,579 429 0.12% 1,469,880 480 0.13% 1,538,963 556 0.15%
Bearing
Deposits
Short-Term 45,893 69 0.59% 59,184 71 0.48% 57,983 48 0.33%
Borrowings
Subordinated
Notes 62,887 351 2.19 62,887 372 2.31 62,887 372 2.34
Payable
Other
Long-Term 42,673 383 3.57 38,494 372 3.85 40,617 396 3.92
Borrowings
Total
Interest 1,572,032 $1,232 0.31% 1,630,445 $1,295 0.32% 1,700,450 $1,372 0.32%
Bearing
Liabilities
Noninterest
Bearing 630,520 605,602 596,690
Deposits
Other 78,442 78,446 74,633
Liabilities
Total 2,280,994 2,314,493 2,371,773
Liabilities
SHAREOWNERS' 253,017 251,746 252,644
EQUITY:
Total
Liabilities
and $ 2,534,011 $ 2,566,239 $ 2,624,417
Shareowners'
Equity
Interest $ 20,697 3.69% $ 21,179 3.73% $ 21,219 3.69%
Rate Spread
Interest
Income and 21,929 4.00 22,474 4.05 22,591 4.01
Rate
Earned^(1)
Interest
Expense and 1,232 0.22 1,295 0.23 1,372 0.24
Rate
Paid^(2)
Net Interest $ 20,697 3.78% $ 21,179 3.82% $ 21,219 3.77%
Margin
^(1) Interest and average rates are calculated on a
tax-equivalent basis using the 35% Federal tax rate.
^(2) Rate calculated
based on average earning
assets.
CAPITAL CITY BANK
GROUP, INC.
AVERAGE BALANCE
AND INTEREST
RATES^(1)
Unaudited
First Quarter 2012 Fourth Quarter 2011
(Dollars in Average Interest Average Average Interest Average
thousands) Balance Rate Balance Rate
ASSETS:
Loans, Net of $ 1,596,480 22,121 5.57% $ 23,032 5.55%
Unearned Interest 1,646,715
Investment
Securities
Taxable
Investment 242,481 794 1.31 248,217 816 1.31
Securities
Tax-Exempt
Investment 56,313 162 1.15 59,647 131 0.88
Securities
Total Investment 298,794 956 1.28 307,864 947 1.22
Securities
Funds Sold 373,033 225 0.24 191,884 96 0.20
Total Earning 2,268,307 $ 23,302 4.13% 2,146,463 $ 24,075 4.45%
Assets
Cash and Due From 49,427 49,666
Banks
Allowance for (31,382) (29,550)
Loan Losses
Other Assets 350,555 343,336
Total Assets $ 2,636,907 $
2,509,915
LIABILITIES:
Interest Bearing
Deposits
NOW Accounts $ 823,406 $192 0.09% $ 700,005 $ 148 0.08%
Money Market 277,558 75 0.11 283,677 75 0.11
Accounts
Savings Accounts 165,603 20 0.05 156,088 20 0.05
Time Deposits 284,129 356 0.50 299,487 456 0.60
Total Interest 1,550,696 643 0.17% 1,439,257 699 0.19%
Bearing Deposits
Short-Term 45,645 8 0.07% 44,573 6 0.05%
Borrowings
Subordinated 62,887 382 2.40 62,887 358 2.23
Notes Payable
Other Long-Term 44,286 436 3.96 45,007 452 3.99
Borrowings
Total Interest
Bearing 1,703,514 $ 1,469 0.35% 1,591,724 $ 1,515 0.38%
Liabilities
Noninterest 610,692 593,718
Bearing Deposits
Other Liabilities 68,254 60,197
Total Liabilities 2,382,460 2,245,639
SHAREOWNERS' 254,447 264,276
EQUITY:
Total Liabilities $
and Shareowners' $ 2,636,907 2,509,915
Equity
Interest Rate $ 21,833 3.78% $ 22,560 4.07%
Spread
Interest Income
and Rate 23,302 4.13 24,075 4.45
Earned^(1)
Interest Expense 1,469 0.26 1,515 0.28
and Rate Paid^(2)
Net Interest $ 21,833 3.87% $ 22,560 4.17%
Margin
^(1) Interest and average rates are calculated on a
tax-equivalent basis using the 35% Federal tax rate.
^(2) Rate calculated based on
average earning assets.
CAPITAL CITY
BANK GROUP, INC.
AVERAGE BALANCE
AND INTEREST
RATES^(1)
Unaudited
Dec 2012 YTD Dec 2011 YTD
(Dollars in Average Interest Average Average Interest Average
thousands) Balance Rate Balance Rate
ASSETS:
Loans, Net of $
Unearned $ 1,556,565 $ 85,780 5.51% 1,686,995 $ 95,520 5.66%
Interest
Investment
Securities
Taxable
Investment 223,429 2,912 1.27 243,059 3,320 1.38
Securities
Tax-Exempt
Investment 65,560 658 1.00 62,497 996 1.59
Securities
Total Investment 288,989 3,570 1.23 305,556 4,316 1.41
Securities
Funds Sold 384,067 946 0.25 228,766 548 0.24
Total Earning 2,229,621 $ 90,296 4.05% $ $ 100,384 4.52%
Assets 2,221,317
Cash and Due 48,924 48,823
From Banks
Allowance for (30,959) (32,066)
Loan Losses
Other Assets 342,587 345,123
Total Assets $ 2,590,173 $
2,583,197
LIABILITIES:
Interest Bearing
Deposits
NOW Accounts $ 771,617 $634 0.08% $ 748,774 $890 0.12%
Money Market 280,165 255 0.09 282,271 437 0.15
Accounts
Savings Accounts 175,712 87 0.05 151,801 73 0.05
Time Deposits 267,263 1,132 0.42 330,750 2,547 0.77
Total Interest 1,494,757 2,108 0.14% 1,513,596 3,947 0.26%
Bearing Deposits
Short-Term 52,178 196 0.38% 68,061 305 0.45%
Borrowings
Subordinated 62,887 1,477 2.31 62,887 1,380 2.16
Notes Payable
Other Long-Term 41,513 1,587 3.82 47,841 1,905 3.98
Borrowings
Total Interest
Bearing 1,651,335 $ 5,368 0.33% 1,692,385 $ 7,537 0.45%
Liabilities
Noninterest 610,915 567,987
Bearing Deposits
Other 74,963 59,777
Liabilities
Total 2,337,213 2,320,149
Liabilities
SHAREOWNERS' 252,960 263,048
EQUITY:
Total
Liabilities and $ 2,590,173 $
Shareowners' 2,583,197
Equity
Interest Rate $ 84,928 3.72% $ 92,847 4.07%
Spread
Interest Income
and Rate 90,296 4.05 100,384 4.52
Earned^(1)
Interest Expense
and Rate 5,368 0.24 7,537 0.34
Paid^(2)
Net Interest $ 84,928 3.81% $ 92,847 4.18%
Margin
^(1) Interest and average rates are calculated on a
tax-equivalent basis using the 35% Federal tax rate.
^(2) Rate calculated based on
average earning assets.
CONTACT: J. Kimbrough Davis
Executive Vice President and Chief Financial Officer
850.402.7820
Sponsored Links
Advertisement
Advertisements
Sponsored Links
Advertisement
Rate this Page