EX-99.1 2 exhibit991.htm EXHIBIT 99.1 exhibit991
 
Capital City Bank Group, Inc.
 
Reports Fourth Quarter 2020 Results
 
TALLAHASSEE, Fla.
 
(January 26, 2021) – Capital City Bank Group, Inc. (NASDAQ:
 
CCBG) today reported net income of $7.7
million, or $0.46 per diluted share for the fourth quarter of 20
 
20 compared to net income of $10.4 million, or $0.62 per diluted share
for the third quarter of 2020, and $8.6 million, or $0.51
 
per diluted share,
 
for the fourth quarter of 2019.
 
 
For the full year of 2020, net income totaled $31.6 million, or $1.88
 
per diluted share, compared to net income of $30.8 million, or
$1.83 per diluted share, for 2019.
 
Fourth Quarter 2020 HIGHLIGHTS
 
Operating revenues (excluding mortgage
 
fees) improved 1.8%
 
-
 
Net interest income held firm, declining
 
$0.1 million
-
 
7% increase in other fee revenues
 
(deposit, bankcard, and wealth management)
 
 
Noninterest expense included $0.9
 
million related to other real
 
estate valuation adjustments ($0.5 million) and other expenses
totaling $0.4 million (additional funding for our foundation
 
and consulting/legal costs related
 
to a strategic initiative)
 
Period-end core loans (excluding SBA
 
PPP) increased $20 million, or 1.1% sequentially
-
 
SBA PPP loan forgiveness pay-offs totaled
 
$12 million - $178 million in balances and $3.2 million in related
 
fees remain at
period-end
 
Credit quality remains
 
strong with no significant probl
 
em loan migration
 
-
 
97%
 
of loan balances for pandemic related extensions
 
have resumed payments – only $9
 
million remains on extension
 
 
Capital City Home Loans (“CCHL”) contributed $0.10 per
 
share
 
Full Year
 
2020 HIGHLIGHTS
 
Operating revenues (excluding mortgage
 
fees) held firm as unfavorable asset re-pricing was offset
 
by SBA PPP loan fees and
higher other fee revenues
 
 
Loan balances buoyed by SBA PPP loan originations which
 
totaled $190 million
-
 
Core loan balances (excluding SBA
 
PPP) held firm due to stronger loan product
 
ion in the fourth quarter
 
Reserve build of $6.6 million (provision
 
of $9.0 million less net charge-offs of $2.4
 
million) in response to potential credit
 
losses
related to the pandemic
-
 
Allowance coverage ratio (excluding SBA PPP) was 1.30%
 
at year-end
 
Deposits grew $572 million (period-end)
 
and $307 million (average) and reflected
 
stimulus inflows as well as strong core
 
deposit
growth
 
 
Acquired 51% ownership in Brand
 
Mortgage, LLC on March 1, 2020 (renamed
 
CCHL) – contributed $0.52 per share
 
“Our strategic alliance with CCHL and the origination of $190
 
million in SBA PPP loans more than offset the adverse impact
 
of our
reserve build and lower interest rates, resulting in year over year
 
earnings growth,” said William G. Smith, Jr.,
 
Chairman, President
and CEO.
 
“As we entered 2020,
 
I certainly didn’t anticipate the difficulties we would
 
face, but I could not be prouder of our team’s
response to the COVID-19 pandemic.
 
We continue to
 
put the safety and well-being of our associates and clients first, as
 
we reach
out to assist our communities through the origination of SBA
 
PPP loans, grants and volunteer hours, and endeavor to meet the needs
of our clients through both in-person and virtual delivery channels.
 
2021 will bring challenges and opportunities, but I am confident
our team has the skills and capacity to successfully navigate the
 
future, and we will continue to focus on implementing strategies that
produce long-term value for our shareowners.
 
My outlook for Capital City remains optimistic,
 
and I appreciate your continued
support.”
 
COVID-19 Update
 
 
We continue to monitor
 
and adhere to national guidelines and local safety ordinances to
 
protect both clients and associates and
respond to changing conditions with the pandemic and its impact on
 
client and associate interactions
 
 
We continue to monitor
 
COVID-19 case count trends in our markets and respond appropriately
 
to help ensure client and associate
safety
 
On November 24, 2020 we proactively closed lobby access to clients in
 
response to higher case count trends in our markets -
banking services are being provided via drive-thru or in-person by appointme
 
nt only (subject to safety protocols)
 
On November 30, 2020 we reinstated remote work arrangements for
 
non-retail associates
 
We continue to provide
 
enhanced digital banking options available for banking products and
 
access to sales associates
 
 
We continue to support
 
clients with the Small Business Administration Payment Protection
 
Program (“SBA PPP”) by actively
assisting with the Round 1 forgiveness process and will offer
 
funding for clients eligible for Round 2
 
 
2
Discussion of Operating Results
 
Summary Overview
 
Compared to the third quarter of 2020,
 
the $5.6 million decrease in operating profit was attributable to a $4.5
 
million decrease in
noninterest income, a $1.0 million increase in noninterest expense,
 
and a $0.1
 
million decrease in net interest income.
 
 
Compared to the fourth quarter of 2019, the $1.7 million increase
 
in operating profit was attributable to a $16.7 million increase in
noninterest income, partially offset by higher noninterest expense
 
of $12.2 million, a $1.5 million increase in the provision for credit
losses and lower net interest income of $1.3 million.
 
 
The $12.1 million increase in operating profit for the full year
 
2020 versus 2019 was attributable to higher noninterest income of
$58.1 million, partially offset by higher noninterest expense of
 
$36.4 million, a $7.6 million increase in the provision for credit
losses and lower net interest income of $2.0 million.
 
 
The aforementioned year over year variances primarily reflect
 
the acquisition of a 51% membership interest and consolidation
 
of
CCHL on March 1, 2020.
 
Our return on average assets (“ROA”) was 0.84%
 
and our return on average equity (“ROE”) was 8.97%
 
for the fourth quarter of
2020.
 
These metrics were 1.17% and 12.16%
 
for the third quarter of 2020,
 
respectively, and 1.14%
 
and 10.39%
 
for the fourth
quarter of 2019, respectively.
 
For the full year 2020, our ROA was 0.93% and our ROE was 9.36
 
%
 
compared to 1.03% and 9.72%,
respectively, for 2019.
 
Net Interest Income/Net Interest
 
Margin
 
Tax-equivalent net interest income
 
for the fourth quarter of 2020 was $25.1
 
million compared to $25.2 million for the third quarter
of 2020 and $26.4 million for the fourth quarter of 2019.
 
For the full year 2020, tax-equivalent net interest income totaled $101.
 
8
million compared to $103.9 million for 2019.
 
The decrease compared to all prior periods reflected lower rates
 
earned on investment
securities and variable/adjustable rate loans.
 
The year-over-year decline also reflected lower rates on
 
overnight funds.
 
Partially
offsetting these declines were higher volumes of earning assets
 
,
 
including lower yielding SBA PPP loans and overnight funds.
 
 
The federal funds target rate has remained in the range
 
of 0.00%-0.25% since March 2020 when the Fed reduced its overnight
 
rate
by 150 basis points, and as a result we continue to experience
 
lower repricing of our variable/adjustable rate earning assets and
investment securities.
 
Our overall cost of funds remained low during the fourth quarter
 
of 2020 at 0.14%, an increase of one basis
point compared to the third quarter of 2020, due to a higher mix of seasonal
 
public deposits.
 
 
Our net interest margin for the fourth quarter of 20
 
20 was 3.00%, a decrease of 12 basis points from the third quarter of 20
 
20 and 89
basis points from the fourth quarter of 2019.
 
For the full year 2020, the net interest margin decreased 55
 
basis points to 3.30%.
 
The
decreases
 
were primarily attributable to significant growth in overnight funds which
 
reduced our margin.
 
Our net interest margin
for the fourth quarter of 2020,
 
excluding the impact of overnight funds in excess of $200
 
million, was 3.50%.
 
We discuss the effect
of the pandemic related stimulus programs on our balance sheet
 
in more detail below under
Discussion of Financial Condition
.
 
 
Provision for Credit Loss
 
 
The provision for credit losses was $1.3 million for both the third
 
and fourth quarters
 
of 2020,
 
and was negative $0.2
 
million for the
fourth quarter of 2019.
 
For the full year 2020, the provision was $9.6 million ($9.0 million for loans held for
 
investment (“HFI”)
and $0.6 million for unfunded loan commitments) compared to
 
$2.0 million in 2019.
 
The higher provision in 2020 reflected
expected losses due to deterioration in economic conditions related
 
to COVID-19.
 
We discuss the allowance
 
for credit losses and
COVID-19 exposure further below.
 
Noninterest Income and Noninterest
 
Expense
 
CCHL’s
 
mortgage banking operations impacted our noninterest income
 
and noninterest expense for the three and twelve month
periods ended December 31, 2020, and thus, the period over
 
period comparisons reflect the impact of the CCHL consolidation,
which occurred on March 1, 2020.
 
The table below provides an overview of CCHL’s
 
impact on our noninterest income and
noninterest expense for 2020.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
3
Noninterest income for the fourth quarter of 2020 totaled
 
$30.5 million compared to $35.0 million for the third quarter of 2020
 
and
$15.5 million for the fourth quarter of 2019.
 
For the full year 2020, noninterest income totaled $111
 
.2 million compared to $53.1
million for 2019.
 
The decrease from the third quarter of 2020 was primarily due to lower
 
mortgage banking revenues which
reflected a seasonal slowdown in loan production and a lower
 
gain on sale margin.
 
The improvement over both periods of 2019 was
primarily attributable to higher mortgage banking revenues at CCHL with higher
 
wealth management fees and bank card fees
contributing, but to a lesser extent.
 
For the full year 2020, deposit fees declined primarily due
 
to the impact of government stimulus
in the second quarter related to the COVID-19 pandemic.
 
The decline in fees realized in the second quarter reversed in the third
 
and
fourth quarters
 
of 2020 reflecting higher utilization
 
of our overdraft product.
 
 
Noninterest expense for the fourth quarter of 2020 totaled
 
$41.3 million compared to $40.3 million for the third quarter of 2020
 
and
$29.1 million for the fourth quarter of 2019.
 
The increase over the third quarter of 2020 was primarily attributable to
 
higher
compensation expense of $0.6 million and other real estate expense of
 
$0.3 million.
 
The increase in compensation reflected higher
commission expense of $0.2 million, salary expense of $0.2
 
million, and cash incentive expense of $0.2 million.
 
Valuation
adjustments totaling $0.5 million for two properties drove
 
the increase in other real estate expense.
 
In addition, we recognized $0.4
million in expenses during the fourth quarter of 2020 related
 
to additional funding of our foundation and consulting/legal
 
costs for a
strategic initiative.
 
 
For the full year 2020, noninterest expense totaled $150
 
.0 million, an increase of $36.4 million over 2019 primarily attributable to
the addition of expenses at CCHL, including compensation expense of
 
$32.4 million, occupancy expense of $2.8 million, and other
expense of $4.8 million.
 
Core CCBG noninterest expense decreased $3.6 million and
 
reflected lower compensation expense of $2.5
million, ORE expense of $0.4
 
million, and other expense of $2.2
 
million,
 
partially offset by higher occupancy expense of $1.
 
5
million.
 
The decrease in compensation expense was primarily attributable to
 
lower commission expense of $2.2 million related to
the transfer of our legacy mortgage production division to CCHL
 
and to a lesser extent, higher realized loan cost of $0.4
 
million
related to the aforementioned increase in SBA PPP loan
 
originations.
 
A $1.0 million gain from the sale of a banking office
 
in the
first quarter of 2020 drove the reduction in ORE expense.
 
The decline in other expense was primarily attributable to
 
lower service
cost expense for our pension plan.
 
Higher expense for FF&E depreciation and maintenance agreements (related
 
to technology
investment and upgrades), higher than normal premises maintenance,
 
and pandemic related cleaning/supply costs drove the increase
in occupancy.
 
The same aforementioned factors drove the decrease in compensation,
 
occupancy, and other expense
 
from the fourth
quarter of 2019.
 
 
Overall, CCHL contributed
 
significantly to the improvement in our efficiency ratio
 
for 2020.
 
Three Months Ended
Twelve Months Ended
Dec 31, 2020
Sep 30, 2020
Dec 31, 2019
Dec 31, 2020
Dec 31, 2019
(Dollars in thousands)
Core
CCBG
CCHL
Core
CCBG
CCHL
Core
CCBG
CCHL
Core
CCBG
CCHL
Core
CCBG
CCHL
Deposit Fees
$
4,713
-
$
4,316
$
-
$
4,980
$
-
$
17,800
$
-
$
19,472
$
-
Bank Card Fees
3,462
-
3,389
-
3,131
-
13,044
-
11,994
-
Wealth Management Fees
3,069
-
2,808
-
2,761
-
11,035
-
10,480
-
Mortgage Banking Fees
302
17,409
208
22,775
1,542
-
1,889
61,455
5,321
-
Other
 
1,205
363
1,182
287
1,414
-
4,992
950
5,786
-
Total Noninterest Income
$
12,751
$
17,772
$
11,903
$
23,062
$
13,828
$
-
$
48,760
$
62,405
$
53,053
$
-
Salaries
$
12,384
$
10,398
$
11,603
$
10,753
$
13,374
$
-
$
49,072
$
31,774
$
50,688
$
-
Other Associate Benefits
3,470
200
3,616
192
3,989
-
14,789
645
15,664
-
Total Compensation
16,124
10,598
15,219
10,945
17,363
-
63,861
32,419
66,352
-
Occupancy, Net
5,056
920
5,061
845
4,680
-
19,895
2,764
18,436
-
Other
 
6,899
1,751
6,930
1,342
7,099
-
26,225
4,798
28,821
-
Total Noninterest Expense
$
28,079
$
13,269
$
27,210
$
13,132
$
29,142
$
-
$
109,981
$
39,981
$
113,609
$
-
 
 
 
4
Income Taxes
 
We realized
 
income tax expense of $2.8 million (effective rate of 22%)
 
for the fourth quarter of 2020 compared to $3.2 million
(effective rate of 17%) for the third quarter of 20
 
20 and $2.5 million (effective rate of 23%) for the fourth quarter
 
of 2019.
 
For the
full year 2020, we realized income tax expense of $10.2
 
million (effective rate of 19%) compared to $10.0 million (effective
 
rate of
24%) for the same period of 2019.
 
Tax expense for the fourth
 
quarter of 2020 was unfavorably impacted by a $0.3
 
million discrete
tax expense.
 
The decrease in our effective tax rate in 2020 reflected
 
the impact of converting CCHL to a partnership for tax
purposes in the second quarter of 2020.
 
Absent discrete items, we expect our annual effective tax rate
 
to approximate 18%-19% in
2021.
 
 
Discussion of Financial Condition
 
Earning Assets
 
Average earning assets were
 
$3.337 billion for the fourth quarter of 2020, an increase of $113.6
 
million, or 3.5%,
 
over the third
quarter of 2020, and an increase of $642.7 million, or 23.9%
 
over the fourth quarter of 2019.
 
The increase over both prior periods
was primarily driven by higher deposit balances, which funded
 
growth in both overnight funds sold and SBA PPP loans.
 
Deposit
balances increased as a result of strong core deposit growth, in addition
 
to funding retained at the bank from SBA PPP loans, and
various other stimulus programs.
 
 
We maintained an average
 
net overnight funds (deposits with banks plus FED funds sold less FED
 
funds purchased) sold position of
$705.1 million during the fourth quarter of 2020 compared
 
to an average net overnight funds sold position of $567.9 million
 
in the
third quarter of 2020 and $228.1 million in the fourth quarter
 
of 2019.
 
The increase compared to both prior periods was driven by
strong core deposit growth, in addition to pandemic related stimulus programs
 
(see below –
Funding
).
 
 
Average loans HFI decreased
 
$11.7 million, or 0.6%, from the third quarter of
 
2020 and increased $159.4 million, or 8.7%, over the
fourth quarter of 2019.
 
In 2020, we originated SBA PPP loans totaling $190 million (reflected
 
in the commercial loan category)
which averaged $185 million in the fourth quarter and totaled
 
$178 million at period-end.
 
Compared to the third quarter of 2020,
the decline in average loans was primarily due to lower commercial
 
and commercial mortgage balances with the decline in
commercial loans due to the reduction in SBA PPP loans and
 
lower utilization of commercial lines of credit reflective of the
economic slowdown.
 
Period-end HFI loans increased $8.3 million, or 0.4%,
 
over the third quarter of 2020 and increased $170.5
million, or 9.3%, over the fourth quarter of 2019.
 
The increase over the third quarter of 2020 reflected higher home equity,
construction, and residential loan balances.
 
 
To date, approximately $12
 
million in SBA PPP loans have been forgiven and paid-off
 
.
 
Forgiveness applications are expected to
accelerate over the next three to six months driven by the recent COVID
 
Relief Bill which allows a streamlined forgiveness
application process for loans of $150,000 and less.
 
At December 31, 2020, SBA PPP loans of $150,000 or less totaled
 
$69 million.
 
SBA PPP loan fees totaled approximately $0.8 million for the fourth quarter
 
of 2020, $0.6 million for the third quarter of 2020,
 
and
$0.4 million for the second quarter of 2020.
 
At December 31, 2020 we had $3.2 million (net) in deferred SBA PPP
 
loan fees.
 
Allowance for Credit Losses
 
At December 31, 2020, the allowance for credit losses totaled
 
$23.8 million compared to $23.1 million at September 30,
 
2020 and
$13.9 million at December 31, 2019.
 
At December 31, 2020, the allowance represented 1.19% of HFI loans and provided
 
coverage
of 406%
 
of nonperforming loans compared to 1.16% and 420%, respectively,
 
at September 30, 2020 and 0.75% and 311%,
respectively, at December 31,
 
2019.
 
At December 31, 2020, excluding SBA PPP loans (100% government guaranteed)
 
,
 
the
allowance represented 1.30%
 
of loans held for investment.
 
The adoption of ASC 326 (“CECL”) on January 1, 2020
 
had an impact of $4.0 million ($3.3 million increase in the allowance for
credit losses and $0.7 million increase in the allowance for unfunded
 
loan commitments (other liability account)).
 
The $6.6 million
build (provision of $9.0 million less net charge
 
-offs of $2.4 million) in the allowance for credit losses in 2020
 
was attributable to
stressed economic conditions related to the COVID-19 pandemic
 
and its potential effect on rates of default.
 
Credit Quality/COVID-19 Exposure
 
Nonperforming assets (nonaccrual loans and OREO) totaled $6.7
 
million at December 31, 2020, comparable to September 30,
 
2020,
and a $1.3 million increase over December 31, 2019.
 
Nonaccrual loans totaled $5.9 million at December 31,
 
2020, a $0.4 million
increase over September 30, 2020 and a $1.4 million increase
 
over December 31, 2019.
 
The balance of OREO totaled $0.8 million
at December 31, 2020, a decrease of $0.4 million from September 30,
 
2020 and a $0.1 million decrease from December 31,
 
2019.
 
 
 
5
We continue to analyze
 
our loan portfolio for segments that have been affected
 
by the stressed economic and business conditions
caused by the pandemic.
 
Certain at-risk segments total 8% of our loan balances at December
 
31, 2020, including hotel (3%),
restaurant (1%),
 
retail and shopping centers (3%), and other (1%).
 
The other segment includes churches, non-profits, education, and
recreational.
 
To assist our clients, in mid-March
 
of 2020, we began allowing short term 60 to 90 day loan extensions
 
for affected
borrowers.
 
We have extended
 
loans totaling $333 million of which 75%
 
were for commercial borrowers and 25%
 
were for
consumer borrowers.
 
Approximately $324 million, or 97%
 
of the loan balances associated with these borrowers have resumed
making regularly scheduled payments.
 
Of the $9 million that remains on extension, no loans were classified
 
at December 31, 2020.
 
Of the $324 million that have resumed payments, loan balances
 
totaling $3.5 million were over 30 days delinquent and an additional
$0.4 million was on nonaccrual status at December 31, 2020.
 
 
Funding (Deposits/Debt)
 
Average total deposits were
 
$3.066 billion for the fourth quarter of 2020, an increase of $94.9
 
million, or 3.2%, over the third
quarter of 2020 and $541.2 million, or 21.4%,
 
over the fourth quarter of 2019.
 
The estimated deposit inflows related to the first
round of pandemic related stimulus programs that occurred primarily
 
during the second quarter were $179 million (SBA PPP)
 
and
$64 million (Economic Impact Payment stimulus checks).
 
Average seasonal public
 
funds increased $30 million over the third
quarter of 2020 and $81 million over the fourth quarter of 2019.
 
For each quarter during 2020, we’ve also realized strong core
deposit growth.
 
Given these large increases as well as the incoming second
 
round of stimulus checks, the potential exists for our
deposit levels to be volatile in 2021 due to the uncertain timing of the outflows
 
of the stimulus related balances and the economic
recovery.
 
It is anticipated that current liquidity levels will remain robust
 
due to our strong overnight funds sold position.
 
 
Average short-term borrowings
 
increased $20.7 million over the third quarter of 2020 and $8
 
7.8 million over the fourth quarter of
2019, which reflected warehouse line borrowings used to support
 
CCHL’s
 
loans held for sale.
 
 
Capital
 
Shareowners’ equity was $320.8 million at December 31, 2020
 
compared to $339.4 million at September 30, 2020 and $327.0
million at December 31, 2019.
 
For the full year of 2020, shareowners’ equity was positively impacted by
 
net income of $31.6
million, a $1.8 million increase in the unrealized gain on investment
 
securities,
 
net adjustments totaling $1.4 million related to
transactions under our stock compensation plans, stock compensation
 
accretion of $0.9
 
million, and a $0.4 million increase in fair
value of the interest rate swap related to subordinated deb
 
t.
 
Shareowners’ equity was reduced by an $18.2 million increase
 
in the
accumulated other comprehensive loss for our pension plan, common
 
stock dividends of $9.6 million ($0.57 per share), a $3.1
million (net of tax) adjustment to retained earnings for the adoption
 
of CECL, reclassification of $9.4 million to temporary equity to
increase the redemption value of the non-controlling interest in CCHL,
 
and share repurchases of $2.0 million (99,952 shares).
 
At December 31, 2020, our total risk-based capital ratio was 17.
 
30%
 
compared to 17.88% at September 30, 2020 and 17.90% at
December 31, 2019.
 
Our common equity tier 1 capital ratio was 13.71%, 14.20%, and 14.47
 
%, respectively, on these dates.
 
Our
leverage ratio was 9.33%, 9.64%, and 11.25%,
 
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 6.25% at December 31, 2020 compared to 7.16%
 
and 8.06%
 
at September 30,
 
2020 and December 31, 2019,
 
respectively.
 
Our
tangible capital ratio was unfavorably impacted at December 31,
 
2020 by the aforementioned annual adjustment to the other
comprehensive loss for our pension plan which was negatively impacted
 
due to the lower discount rate used to calculate the present
value of the pension obligation.
 
The lower discount rate reflected the significant decline in long-term
 
interest rates in 2020.
 
 
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 $3.8 billion in assets.
 
We provide
 
a full range of banking services, including traditional deposi
 
t
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
 
86 ATMs/ITMs
 
in Florida,
Georgia and Alabama.
 
For more information about Capital City Bank Group, Inc., visit
www.ccbg.com
.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
6
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 magnitude and duration of the COVID-19
 
pandemic and its impact on the global economy and financial market
 
conditions
and our business, results of operations and financial condition, including
 
the impact of our participation in government programs
related to COVID-19; the accuracy of the our financial statement
 
estimates and assumptions; legislative or regulatory changes;
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; natural disasters, widespread health emergencies,
military conflict, terrorism or other geopolitical events; 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; 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,
 
2019, 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 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)
Dec 31, 2020
Sep 30, 2020
Jun 30, 2020
Mar 31, 2020
Dec 31, 2019
Shareowners' Equity (GAAP)
$
320,837
$
339,425
$
335,057
$
328,507
$
327,016
Less: Goodwill (GAAP)
89,095
89,095
89,095
89,275
84,811
Tangible Shareowners' Equity (non-GAAP)
A
231,742
250,330
245,962
239,232
242,205
Total Assets (GAAP)
3,798,071
3,587,041
3,499,524
3,086,523
3,088,953
Less: Goodwill (GAAP)
89,095
89,095
89,095
89,275
84,811
Tangible Assets (non-GAAP)
B
$
3,708,976
$
3,497,946
$
3,410,429
$
2,997,248
$
3,004,142
Tangible Common Equity Ratio (non-GAAP)
A/B
6.25%
7.16%
7.21%
7.98%
8.06%
Actual Diluted Shares Outstanding (GAAP)
C
16,844,997
16,800,563
16,821,743
16,845,462
16,855,161
Tangible Book Value
 
per Diluted Share (non-GAAP)
A/C
$
13.76
$
14.90
$
14.62
$
14.20
$
14.37
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
7
CAPITAL CITY BANK
 
GROUP,
 
INC.
EARNINGS HIGHLIGHTS
Unaudited
Three Months Ended
Twelve Months Ended
(Dollars in thousands, except per share data)
Dec 31, 2020
Sep 30, 2020
Dec 31, 2019
Dec 31, 2020
Dec 31, 2019
EARNINGS
Net Income Attributable to Common Shareowners
$
7,746
$
10,397
$
8,565
$
31,576
$
30,807
Diluted Net Income Per Share
$
0.46
$
0.62
$
0.51
$
1.88
$
1.83
PERFORMANCE
Return on Average Assets
0.84
%
1.17
%
1.14
%
0.93
%
1.03
%
Return on Average Equity
8.97
12.16
10.39
9.36
9.72
Net Interest Margin
3.00
3.12
3.89
3.30
3.85
Noninterest Income as % of Operating Revenue
55.00
58.19
34.50
52.32
33.92
Efficiency Ratio
74.36
%
67.01
%
72.48
%
70.43
%
72.40
%
CAPITAL ADEQUACY
Tier 1 Capital
 
16.19
%
16.77
%
17.16
%
16.19
%
17.16
%
Total Capital
 
17.30
17.88
17.90
17.30
17.90
Leverage
 
9.33
9.64
11.25
9.33
11.25
Common Equity Tier 1
13.71
14.20
14.47
13.71
14.47
Tangible Common Equity
(1)
6.25
7.16
8.06
6.25
8.06
Equity to Assets
8.45
%
9.46
%
10.59
%
8.45
%
10.59
%
ASSET QUALITY
Allowance as % of Non-Performing Loans
405.66
%
420.30
%
310.99
%
405.66
%
310.99
%
Allowance as a % of Loans HFI
1.19
1.16
0.75
1.19
0.75
Net Charge-Offs as % of Average Loans HFI
0.09
0.11
0.05
0.12
0.13
Nonperforming Assets as % of Loans HFI and OREO
0.33
0.34
0.29
0.33
0.29
Nonperforming Assets as % of Total Assets
0.18
%
0.19
%
0.18
%
0.18
%
0.18
%
STOCK PERFORMANCE
High
 
$
26.35
$
21.71
$
30.95
$
30.62
$
30.95
Low
18.14
17.55
25.75
15.61
21.04
Close
$
24.58
$
18.79
$
30.50
$
24.58
$
30.50
Average Daily Trading Volume
22,271
28,517
41,247
35,125
27,496
(1)
 
Tangible common equity ratio is a non-GAAP financial measure.
 
For additional information, including a reconciliation to GAAP, refer to
 
Page 6.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
8
CAPITAL CITY BANK GROUP, INC.
CONSOLIDATED STATEMENT
 
OF FINANCIAL CONDITION
Unaudited
2020
2019
(Dollars in thousands)
Fourth Quarter
Third Quarter
Second Quarter
First Quarter
Fourth Quarter
ASSETS
Cash and Due From Banks
$
67,919
$
76,509
$
75,155
$
72,676
$
60,087
Funds Sold and Interest Bearing Deposits
860,630
626,104
513,273
196,936
318,336
Total Cash and Cash Equivalents
928,549
702,613
588,428
269,612
378,423
Investment Securities Available for Sale
324,870
328,253
341,180
382,514
403,601
Investment Securities Held to Maturity
169,939
202,593
232,178
251,792
239,539
 
Total Investment Securities
494,809
530,846
573,358
634,306
643,140
Loans Held for Sale ("HFS")
114,039
116,561
76,610
82,598
9,509
Loans Held for Investment ("HFI"):
Commercial, Financial, & Agricultural
393,930
402,997
421,270
249,020
255,365
Real Estate - Construction
135,831
125,804
117,794
122,595
115,018
Real Estate - Commercial
648,393
656,064
662,434
656,084
625,556
Real Estate - Residential
342,664
335,713
353,831
354,150
353,642
Real Estate - Home Equity
205,479
197,363
194,479
196,443
197,360
Consumer
269,520
268,393
266,417
275,982
279,565
Other Loans
9,879
10,488
4,883
6,580
7,808
Overdrafts
730
1,339
1,069
1,533
1,615
Total Loans Held for Investment
2,006,426
1,998,161
2,022,177
1,862,387
1,835,929
Allowance for Credit Losses
(23,816)
(23,137)
(22,457)
(21,083)
(13,905)
Loans Held for Investment, Net
1,982,610
1,975,024
1,999,720
1,841,304
1,822,024
Premises and Equipment, Net
86,791
87,192
87,972
87,684
84,543
Goodwill
89,095
89,095
89,095
89,275
84,811
Other Real Estate Owned
808
1,227
1,059
1,463
953
Other Assets
101,370
84,483
83,282
80,281
65,550
Total Other Assets
278,064
261,997
261,408
258,703
235,857
Total Assets
$
3,798,071
$
3,587,041
$
3,499,524
$
3,086,523
$
3,088,953
LIABILITIES
Deposits:
Noninterest Bearing Deposits
$
1,328,809
$
1,378,314
$
1,377,033
$
1,066,607
$
1,044,699
NOW Accounts
1,046,408
827,506
808,244
779,467
902,499
Money Market Accounts
266,649
247,823
240,754
210,124
217,839
Regular Savings Accounts
474,100
451,944
423,924
384,480
374,396
Certificates of Deposit
101,594
103,859
105,041
104,907
106,021
Total Deposits
3,217,560
3,009,446
2,954,996
2,545,585
2,645,454
Short-Term Borrowings
79,654
90,936
63,958
76,516
6,404
Subordinated Notes Payable
52,887
52,887
52,887
52,887
52,887
Other Long-Term Borrowings
3,057
5,268
5,583
5,896
6,514
Other Liabilities
102,076
71,880
75,702
70,044
50,678
Total Liabilities
3,455,234
3,230,417
3,153,126
2,750,928
2,761,937
Temporary Equity
22,000
17,199
11,341
7,088
-
SHAREOWNERS' EQUITY
Common Stock
168
168
168
168
168
Additional Paid-In Capital
32,283
31,425
31,575
32,100
32,092
Retained Earnings
332,528
333,545
328,570
321,772
322,937
Accumulated Other Comprehensive Loss, Net of Tax
(44,142)
(25,713)
(25,256)
(25,533)
(28,181)
Total Shareowners' Equity
320,837
339,425
335,057
328,507
327,016
Total Liabilities, Temporary Equity and Shareowners' Equity
$
3,798,071
$
3,587,041
$
3,499,524
$
3,086,523
$
3,088,953
OTHER BALANCE SHEET DATA
Earning Assets
$
3,475,904
$
3,271,672
$
3,185,418
$
2,776,228
$
2,806,913
Interest Bearing Liabilities
2,024,349
1,780,223
1,700,391
1,614,277
1,666,560
Book Value Per Diluted Share
$
19.05
$
20.20
$
19.92
$
19.50
$
19.40
Tangible Book Value
 
Per Diluted Share
(1)
13.76
14.90
14.62
14.20
14.37
Actual Basic Shares Outstanding
16,791
16,761
16,780
16,812
16,772
Actual Diluted Shares Outstanding
16,845
16,801
16,822
16,845
16,855
(1)
 
Tangible book value per diluted share is a non-GAAP financial measure.
 
For additional information, including a reconciliation to GAAP, refer to Page 6.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
9
CAPITAL CITY BANK
 
GROUP,
 
INC.
CONSOLIDATED STATEMENT
 
OF OPERATIONS
Unaudited
Twelve Months Ended
2020
2019
December 31,
(Dollars in thousands, except per share data)
Fourth
Quarter
Third
Quarter
Second
Quarter
First
Quarter
Fourth
Quarter
2020
2019
INTEREST INCOME
Interest and Fees on Loans
$
23,878
$
23,594
$
23,687
$
23,593
$
23,842
$
94,752
$
94,215
Investment Securities
2,096
2,426
2,737
3,015
3,221
10,274
13,434
Funds Sold
180
146
88
757
945
1,171
5,187
Total Interest Income
26,154
26,166
26,512
27,365
28,008
106,197
112,836
INTEREST EXPENSE
Deposits
201
190
218
939
1,157
1,548
6,840
Short-Term Borrowings
639
498
421
132
16
1,690
109
Subordinated Notes Payable
311
316
374
471
525
1,472
2,287
Other Long-Term Borrowings
30
40
41
50
56
161
257
Total Interest Expense
1,181
1,044
1,054
1,592
1,754
4,871
9,493
Net Interest Income
24,973
25,122
25,458
25,773
26,254
101,326
103,343
Provision for Credit Losses
1,342
1,308
2,005
4,990
(162)
9,645
2,027
Net Interest Income after Provision for
 
Credit Losses
23,631
23,814
23,453
20,783
26,416
91,681
101,316
NONINTEREST INCOME
Deposit Fees
4,713
4,316
3,756
5,015
4,980
17,800
19,472
Bank Card Fees
3,462
3,389
3,142
3,051
3,131
13,044
11,994
Wealth Management Fees
3,069
2,808
2,554
2,604
2,761
11,035
10,480
Mortgage Banking Fees
17,711
22,983
19,397
3,253
1,542
63,344
5,321
Other
 
1,568
1,469
1,350
1,555
1,414
5,942
5,786
Total Noninterest Income
30,523
34,965
30,199
15,478
13,828
111,165
53,053
NONINTEREST EXPENSE
Compensation
26,722
26,164
23,658
19,736
17,363
96,280
66,352
Occupancy, Net
5,976
5,906
5,798
4,979
4,680
22,659
18,436
Other Real Estate, Net
567
219
116
(798)
102
104
546
Other
 
8,083
8,053
7,731
7,052
6,997
30,919
28,275
Total Noninterest Expense
41,348
40,342
37,303
30,969
29,142
149,962
113,609
OPERATING PROFIT
12,806
18,437
16,349
5,292
11,102
52,884
40,760
Income Tax Expense
2,833
3,165
2,950
1,282
2,537
10,230
9,953
Net Income
9,973
15,272
13,399
4,010
8,565
42,654
30,807
Pre-Tax Income Attributable to Noncontrolling Interest
(2,227)
(4,875)
(4,253)
277
-
(11,078)
-
NET INCOME ATTRIBUTABLE
 
TO
 
COMMON SHAREOWNERS
$
7,746
$
10,397
$
9,146
$
4,287
$
8,565
$
31,576
$
30,807
PER COMMON SHARE
Basic Net Income
$
0.46
$
0.62
$
0.55
$
0.25
$
0.51
$
1.88
$
1.84
Diluted Net Income
0.46
0.62
0.55
0.25
0.51
1.88
1.83
Cash Dividend
 
$
0.15
$
0.14
$
0.14
$
0.14
$
0.13
$
0.57
$
0.48
AVERAGE
 
SHARES
Basic
 
16,763
16,771
16,797
16,808
16,750
16,785
16,770
Diluted
 
16,817
16,810
16,839
16,842
16,834
16,822
16,827
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
10
CAPITAL CITY BANK GROUP,
 
INC.
ALLOWANCE FOR CREDIT LOSSES
 
AND RISK ELEMENT ASSETS
Unaudited
Twelve Months Ended
2020
2019
December 31,
(Dollars in thousands, except per share data)
Fourth
Quarter
Third
Quarter
Second
Quarter
First
Quarter
Fourth
Quarter
2020
2019
ALLOWANCE FOR CREDIT LOSSES
Balance at Beginning of Period
$
23,137
$
22,457
$
21,083
$
13,905
$
14,319
$
13,905
$
14,210
Impact of Adopting ASC 326 (CECL)
-
-
-
3,269
-
3,269
-
Provision for Credit Losses - HFI
1,165
1,265
1,615
4,990
(162)
9,035
2,027
Net Charge-Offs
486
585
241
1,081
252
2,393
2,332
Balance at End of Period
(2)
$
23,816
$
23,137
$
22,457
$
21,083
$
13,905
$
23,816
$
13,905
As a % of Loans HFI
1.19%
1.16%
1.11%
1.13%
0.75%
1.19%
0.75%
As a % of Nonperforming Loans
405.66%
420.30%
322.37%
432.61%
310.99%
405.66%
310.99%
CHARGE-OFFS
Commercial, Financial and Agricultural
$
104
$
137
$
186
$
362
$
149
$
789
$
768
Real Estate - Construction
-
-
-
-
58
-
281
Real Estate - Commercial
-
17
-
11
33
28
214
Real Estate - Residential
38
1
1
110
27
150
400
Real Estate - Home Equity
10
58
52
31
-
151
430
Consumer
668
619
634
864
819
2,785
2,878
Overdrafts
(3)
564
450
541
702
-
2,257
-
Total Charge-Offs
$
1,384
$
1,282
$
1,414
$
2,080
$
1,086
$
6,160
$
4,971
RECOVERIES
Commercial, Financial and Agricultural
$
64
$
74
$
74
$
40
$
127
$
252
$
345
Real Estate - Construction
50
-
-
-
-
50
-
Real Estate - Commercial
27
30
70
191
266
318
578
Real Estate - Residential
153
35
51
40
116
279
429
Real Estate - Home Equity
40
41
64
33
25
178
175
Consumer
306
280
365
268
300
1,219
1,112
Overdrafts
(3)
258
237
549
427
-
1,471
-
Total Recoveries
$
898
$
697
$
1,173
$
999
$
834
$
3,767
$
2,639
NET CHARGE-OFFS
$
486
$
585
$
241
$
1,081
$
252
$
2,393
$
2,332
Net Charge-Offs as a % of Average Loans HFI
(1)
0.09%
0.11%
0.05%
0.23%
0.05%
0.12%
0.13%
RISK ELEMENT ASSETS
Nonaccruing Loans
$
5,871
$
5,505
$
6,966
$
4,874
$
4,472
Other Real Estate Owned
808
1,227
1,059
1,463
953
Total Nonperforming Assets ("NPAs")
$
6,679
$
6,732
$
8,025
$
6,337
$
5,425
Past Due Loans 30-89 Days
 
$
4,594
$
3,191
$
2,948
$
5,077
$
4,871
Past Due Loans 90 Days or More
-
-
-
-
-
Classified Loans
17,631
16,772
17,091
16,548
20,847
Performing Troubled Debt Restructuring's
$
13,887
$
14,693
$
15,133
$
15,934
$
16,888
Nonperforming Loans as a % of Loans HFI
0.29%
0.28%
0.34%
0.26%
0.24%
NPAs as a % of Loans HFI and Other Real Estate
0.33%
0.34%
0.40%
0.34%
0.29%
NPAs as a % of
 
Total Assets
0.18%
0.19%
0.23%
0.21%
0.18%
(1)
 
Annualized
(2)
 
Does not include $1.6 million for unfunded commitments recorded in other liabilities at 12/31/2020.
(3)
 
Prior to the first quarter 2020, overdraft losses were reflected in
 
noninterest income (deposit fees).
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
11
CAPITAL CITY BANK GROUP,
 
INC.
AVERAGE
 
BALANCE AND INTEREST RATES
(1)
Unaudited
Fourth Quarter 2020
Third Quarter 2020
Second Quarter 2020
First Quarter 2020
Fourth Quarter 2019
Dec 2020 YTD
Dec 2019 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 HFI and HFS
$
2,114,522
$
23,981
4.52
%
$
2,097,700
$
23,698
4.50
%
$
2,057,925
$
23,785
4.65
%
$
1,882,703
23,692
5.06
%
$
1,846,190
$
23,958
5.15
%
$
2,038,701
$
95,156
4.67
%
$
1,822,087
$
94,662
5.20
%
Investment Securities
Taxable Investment Securities
513,277
2,072
1.61
553,395
2,401
1.73
601,509
2,708
1.80
629,512
2,995
1.91
610,046
3,186
2.08
574,199
10,176
1.77
612,541
13,123
2.14
Tax-Exempt Investment Securities
4,485
30
2.71
4,860
32
2.66
5,865
37
2.51
5,293
25
1.86
10,327
43
1.67
5,123
124
2.42
24,471
390
1.60
Total Investment Securities
517,762
2,102
1.62
558,255
2,433
1.74
607,374
2,745
1.81
634,805
3,020
1.91
620,373
3,229
2.08
579,322
10,300
1.78
637,012
13,513
2.12
Funds Sold
705,125
180
0.10
567,883
146
0.10
351,473
88
0.10
234,372
757
1.30
228,137
945
1.64
465,652
1,171
0.25
237,999
5,187
2.18
Total Earning Assets
3,337,409
$
26,263
3.14
%
3,223,838
$
26,277
3.25
%
3,016,772
$
26,618
3.55
%
2,751,880
$
27,469
4.01
%
2,694,700
$
28,132
4.14
%
3,083,675
$
106,627
3.46
%
2,697,098
$
113,362
4.20
%
Cash and Due From Banks
73,968
69,893
72,647
56,958
53,174
68,386
52,453
Allowance for Loan Losses
(23,725)
(22,948)
(21,642)
(14,389)
(14,759)
(20,690)
(14,622)
Other Assets
264,784
268,549
261,449
244,339
249,089
259,700
252,127
Total Assets
$
3,652,436
$
3,539,332
$
3,329,226
$
3,038,788
$
2,982,204
$
3,391,071
$
2,987,056
LIABILITIES:
Interest Bearing Deposits
NOW Accounts
$
879,564
$
66
0.03
%
$
826,776
$
61
0.03
%
$
789,378
$
78
0.04
%
$
808,811
$
725
0.36
%
$
755,625
$
889
0.47
%
$
826,280
$
930
0.11
%
$
805,134
$
5,502
0.68
%
Money Market Accounts
261,543
34
0.05
247,185
32
0.05
222,377
40
0.07
212,211
117
0.22
227,479
170
0.30
235,931
223
0.09
235,845
946
0.40
Savings Accounts
466,116
57
0.05
438,762
54
0.05
409,366
50
0.05
379,237
46
0.05
372,518
46
0.05
423,529
207
0.05
370,430
182
0.05
Time Deposits
102,809
44
0.17
104,522
43
0.16
104,718
50
0.19
105,542
51
0.19
108,407
52
0.19
104,393
188
0.18
113,499
210
0.19
Total Interest Bearing Deposits
1,710,032
201
0.05
%
1,617,245
190
0.05
%
1,525,839
218
0.06
%
1,505,801
939
0.25
%
1,464,029
1,157
0.31
%
1,590,133
1,548
0.10
%
1,524,908
6,840
0.45
%
Short-Term Borrowings
95,280
639
2.67
%
74,557
498
2.66
%
73,377
421
2.31
%
32,915
132
1.61
%
7,448
16
0.87
%
69,119
1,690
2.44
%
9,275
109
1.19
%
Subordinated Notes Payable
52,887
311
2.30
52,887
316
2.34
52,887
374
2.80
52,887
471
3.52
52,887
525
3.88
52,887
1,472
2.74
52,887
2,287
4.26
Other Long-Term Borrowings
3,700
30
3.18
5,453
40
2.91
5,766
41
2.84
6,312
50
3.21
6,723
56
3.33
5,304
161
3.03
7,393
257
3.48
Total Interest Bearing Liabilities
1,861,899
$
1,181
0.25
%
1,750,142
$
1,044
0.24
%
1,657,869
$
1,054
0.26
%
1,597,915
$
1,592
0.40
%
1,531,087
$
1,754
0.45
%
1,717,443
$
4,871
0.28
%
1,594,463
$
9,493
0.60
%
Noninterest Bearing Deposits
1,356,104
1,354,032
1,257,614
1,046,889
1,060,922
1,254,214
1,012,581
Other Liabilities
74,605
83,192
72,073
59,587
63,291
72,400
62,940
Total Liabilities
3,292,608
3,187,366
2,987,556
2,704,391
2,655,300
3,044,057
2,669,984
Temporary Equity
16,154
11,893
8,155
2,506.00
-
9,701
-
SHAREOWNERS' EQUITY:
343,674
340,073
333,515
331,891
326,904
337,313
317,072
Total Liabilities, Temporary
 
Equity and
Shareowners' Equity
$
3,652,436
$
3,539,332
$
3,329,226
$
3,038,788
$
2,982,204
$
3,391,071
$
2,987,056
Interest Rate Spread
$
25,082
2.88
%
$
25,233
3.01
%
$
25,564
3.30
%
$
25,877
3.61
%
$
26,378
3.69
%
$
101,756
3.18
%
$
103,869
3.61
%
Interest Income and Rate Earned
(1)
26,263
3.14
26,277
3.25
26,618
3.55
27,469
4.01
28,132
4.14
106,627
3.46
113,362
4.20
Interest Expense and Rate Paid
(2)
1,181
0.14
1,044
0.13
1,054
0.14
1,592
0.23
1,754
0.26
4,871
0.16
9,493
0.35
Net Interest Margin
$
25,082
3.00
%
$
25,233
3.12
%
$
25,564
3.41
%
$
25,877
3.78
%
$
26,378
3.89
%
$
101,756
3.30
%
$
103,869
3.85
%
(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.