Capital City Bank Group, Inc. Reports First Quarter 2021 Results

4/27/2021, 1:00 PM (Source: GlobeNewswire)

TALLAHASSEE, Fla., April 27, 2021 (GLOBE NEWSWIRE) -- Capital City Bank Group, Inc. (NASDAQ: CCBG) today reported net income of $9.5 million, or $0.56 per diluted share, for the first quarter of 2021 compared to net income of $7.7 million, or $0.46 per diluted share, for the fourth quarter of 2020, and $4.3 million, or $0.25 per diluted share, for the first quarter of 2020.  

QUARTER HIGHLIGHTS

  • Return on assets of 1.01% and return on equity of 11.81%
  • Credit quality metrics remained stable and reduced COVID-19 exposure drove a negative credit loss provision of $1.0 million
  • Period-end loan balances grew by $51 million, or 2.6% sequentially
    • SBA PPP Round 2 originations totaled $65 million through March 31st
    • SBA PPP Round 1 forgiveness pay-offs totaled $36 million - $143 million in balances remain at period-end
    • SBA PPP deferred fees remaining at March 31st totaled $5 million ($2 million for Round 1 and $3 million for Round 2)
  • Average deposit balances grew $173 million, or 5.7% sequentially and reflected stimulus inflows as well as strong core deposit growth
  • Noninterest expense declined $0.9 million driven by lower expense for other real estate and compensation
  • Capital City Home Loans (“CCHL”) contributed $0.09 per share

“I am pleased with our first quarter results,” said William G. Smith, Jr., Chairman, President and CEO of Capital City Bank Group.  “Rising consumer spending, lower unemployment, improving credit quality and a noticeable increase in loan activity in and around our markets, are contributing to a stronger economy.  Our core business is performing well.  In addition to round two of the SBA PPP loans, we experienced solid growth in commercial real estate and residential loans, culminating in net loan growth of $51 million, or 2.6% for the quarter.  Wealth management, mortgage and debit/credit cards performed well.  Expenses declined $0.9 million, or 2% quarter over quarter.  After evaluating our credit risk, we lowered our allowance for credit losses by $1.8 million, or 8%.  This was based on our current level of problem assets and pandemic-related extensions, a $0.5 million net recovery for the quarter and our positive outlook on the economy.  The past year has been challenging.  Our team has responded to every challenge and we have tweaked our business model, where appropriate.  While our tactics may change, our strategy remains the same -- to produce long-term value for our shareowners.  I am optimistic about our future.” 

COVID-19 Update

  • We continue to closely monitor conditions in our communities.  With case counts trending downward in most of our markets, we established a phased plan for safely returning to work beginning February 1st.
  • On March 1st, all of our banking offices returned to normal banking hours and lobby services.
  • For the near term, we will continue to maintain flexible in-office and remote working arrangements for non-retail associates to limit building capacity.
  • We are adhering to national guidelines and local safety ordinances to protect both clients and 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 offering funding for clients eligible in Round 2.

Discussion of Operating Results

Summary Overview

Compared to the fourth quarter of 2020, the $2.0 million increase in operating profit was attributable to a $2.3 million decrease in the provision for credit losses and lower noninterest expense of $0.9 million, partially offset by a $0.7 million decrease in noninterest income and lower net interest income of $0.5 million.

Compared to the first quarter of 2020, the $9.5 million increase in operating profit was attributable to a $14.3 million increase in noninterest income and a lower provision for credit losses of $6.0 million, partially offset by higher noninterest expense of $9.5 million and lower net interest income of $1.3 million.  This comparison reflects the acquisition of a 51% membership interest in, and consolidation of, CCHL on March 1, 2020.

Our return on average assets (“ROA”) was 1.01% and our return on average equity (“ROE”) was 11.81% for the first quarter of 2021.  These metrics were 0.84% and 8.97% for the fourth quarter of 2020, respectively, and 0.57% and 5.20% for the first quarter of 2020, respectively. 

Net Interest Income/Net Interest Margin

Tax-equivalent net interest income for the first quarter of 2021 was $24.6 million compared to $25.1 million for the fourth quarter of 2020 and $25.9 million for the first quarter of 2020.  The decrease compared to both 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 first quarter of 2021 at 0.11%, a decrease of three basis points compared to the fourth quarter of 2020, primarily due to a reduction in short-term borrowings.    

Our net interest margin for the first quarter of 2021 was 2.85%, a decrease of 15 basis points from the fourth quarter of 2020 and a decline of 93 basis points from the first quarter of 2020.  The decreases were primarily attributable to significant growth in overnight funds which reduced our margin.   Our net interest margin for the first quarter of 2021, excluding the impact of overnight funds in excess of $200 million, was 3.45%.  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

We recorded a negative provision for credit losses of $1.0 million (consisting of a negative $2.3 million for HFI loans, partially offset by a $1.3 million expense for unfunded loan commitments) for the first quarter of 2021 compared to provision expense of $1.3 million for the fourth quarter of 2020 and $5.0 million for the first quarter of 2020.  The negative provision for the first quarter of 2021 generally reflected improving economic conditions and a lower level of expected losses related to COVID-19.  Further, we recognized net loan recoveries of $0.5 million in the first quarter of 2021.  We discuss the allowance for credit losses and COVID-19 exposure further below.

Noninterest Income and Noninterest Expense

Noninterest income for the first quarter of 2021 totaled $29.8 million compared to $30.5 million for the fourth quarter of 2020 and $15.5 million for the first quarter of 2020.  The decrease from the fourth quarter of 2020 was due to lower mortgage banking revenues of $0.6 million and deposit of $0.4 million, partially offset by higher bank card fees of $0.2 million and other income of $0.1 million.  Compared to the first quarter of 2020, the $14.3 million increase reflected higher mortgage banking revenues of $13.9 million, wealth management fees of $0.5 million, and bank card fees of $0.6 million, partially offset by lower deposit fees of $0.7 million.    

Noninterest expense for the first quarter of 2021 totaled $40.5 million compared to $41.3 million for the fourth quarter of 2020 and $31.0 million for the first quarter of 2020.  The decrease from the fourth quarter of 2020 was primarily attributable to lower compensation expense of $0.6 million and other real estate owned (“OREO”) expense of $0.7 million, partially offset by higher other expense of $0.5 million.  Compared to the first quarter of 2020, the $9.5 million increase reflected expenses added by the CCHL acquisition as Core CCBG’s expenses remained flat. 

The 51% ownership acquisition of CCHL and consolidation into CCBG’s financial statements occurred on March 1, 2020.  The table below reflects the major components of noninterest income for both Core CCBG and CCHL to help facilitate a better understanding of the year over year comparison. 

             
  Three Months Ended
  Mar 31, 2021 Dec 31, 2020 Mar 31, 2020
(Dollars in thousands) Core
CCBG
 CCHL Core
CCBG
 CCHL Core
CCBG
 CCHL
Deposit Fees$4,271 -$4,713$-$5,015$-
Bank Card Fees 3,618 - 3,462 - 3,051 -
Wealth Management Fees 3,090 - 3,069 - 2,604 -
Mortgage Banking Fees 279 16,846 302 17,409 1,138 2,115
Other 1,296 426 1,205 363 1,459 96
Total Noninterest Income$12,554$17,272$12,751$17,772$13,267$2,211
             
Salaries$12,171$10,276$12,384$10,398$13,488$2,242
Other Associate Benefits 3,396 221 3,740 200 3,957 49
Total Compensation 15,567 10,497 16,124 10,598 17,445 2,291
             
Occupancy, Net 5,106 861 5,056 920 4,748 231
Other 7,344 1,101 6,899 1,751 5,797 457
Total Noninterest Expense$28,017$12,459$28,079$13,269$27,990$2,979
             

Income Taxes

We realized income tax expense of $2.8 million (effective rate of 19%) for the first quarter of 2021 compared to $2.8 million (effective rate of 22%) for the fourth quarter of 2020 and $1.3 million (effective rate of 24%) for the first quarter of 2020.  Tax expense for the fourth quarter of 2020 was unfavorably impacted by a $0.3 million discrete tax expense.  Compared to the first quarter of 2020, the decrease in our effective tax rate was attributable to 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 $3.498 billion for the first quarter of 2021, an increase of $160.5 million, or 4.8%, over the fourth quarter of 2020, and an increase of $746.0 million, or 27.1%, over the first quarter of 2020.  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 $814.6 million in the first quarter of 2021 compared to an average net overnight funds sold position of $705.1 million in the fourth quarter of 2020 and $234.4 million in the first quarter of 2020.  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 held for investment (HFI) increased $50.9 million, or 2.6%, over the fourth quarter of 2020 and increased $196.6 million, or 10.6%, over the first quarter of 2020.  Compared to the fourth quarter of 2020, average loan balances increased across all loan types except institutional and consumer, which declined slightly.  Compared to the first quarter of 2020, average loan balances increased across all loan types except institutional, consumer, and HELOCs.  Period-end HFI loans increased $51.3 million, or 2.6%, over the fourth quarter of 2020 and increased $195.3 million, or 10.5%, over the first quarter of 2020.

In the first quarter of 2021, we originated an additional round of SBA PPP loans totaling $65.4 million (reflected in the commercial loan category) which averaged $23.7 million for the quarter.  Approximately $256 million in SBA PPP loans have been made since the inception of this program.  Through the first quarter of 2021, approximately $47 million in SBA PPP loans have been forgiven and paid-off ($11 million in Q4 2020 and $36 million in Q1 2021).  Forgiveness applications are expected to remain strong over the next three months for SBA PPP loans funded in 2020, and then over the course of 2021 for the SBA PPP loans funded in 2021.  SBA PPP loan fee income totaled approximately $1.2 million for the first quarter of 2021.  At March 31, 2021 we had $5.0 million (net) in deferred SBA PPP loan fees.

Allowance for Credit Losses

At March 31, 2021, the allowance for credit losses for HFI loans totaled $22.0 million compared to $23.8 million at December 31, 2020 and $21.1 million at March 31, 2020.  Activity within the allowance is provided on Page 9.  The $1.8 million net decrease in the allowance for the first quarter of 2021 reflected net loan recoveries totaling $0.5 million and the release of $2.3 million in reserves which reflected lower expected loan losses related to COVID-19.  At March 31, 2021, the allowance represented 1.07% of HFI loans and provided coverage of 411% of nonperforming loans compared to 1.19% and 406%, respectively, at December 31, 2020 and 1.13% and 433%, respectively, at March 31, 2020.  At March 31, 2021, excluding SBA PPP loans (100% government guaranteed), the allowance represented 1.19% of HFI loans compared to 1.30% at December 31, 2020. 

Credit Quality/COVID-19 Exposure

Nonperforming assets (nonaccrual loans and OREO) totaled $5.5 million at March 31, 2021 compared to $6.7 million at December 31, 2020 and $6.3 million at March 31, 2020.  Nonaccrual loans totaled $5.4 million at March 31, 2021, a $0.5 million decrease from December 31, 2020 and a $0.5 million increase over March 31, 2020.  The balance of OREO totaled $0.1 million at March 31, 2021, a decrease of $0.7 million from December 31, 2020 and a $1.3 million decrease from March 31, 2020.

We continue to monitor our loan portfolio for segments that continue to be affected by the pandemic.  To assist our clients, we have extended loans totaling $333 million of which 75% were for commercial borrowers and 25% were for consumer borrowers.  Approximately $328 million, or 98%, of the loan balances associated with these borrowers have resumed making regularly scheduled payments of which loan balances totaling $2.9 million were over 30 days delinquent and an additional $0.6 million was on nonaccrual status at March 31, 2021.  Of the $5 million that remains on extension, no loans were classified at March 31, 2021.               

Funding (Deposits/Debt)

Average total deposits were $3.240 billion for the first quarter of 2021, an increase of $173.4 million, or 5.7%, over the fourth quarter of 2020 and $686.8 million, or 26.9%, over the first quarter of 2020.  Average core deposits grew $546.8 million over the first quarter of 2020, which includes $342.9 million in noninterest bearing deposits and $113.0 million in savings account balances. In addition, average public fund deposits grew $121 million during this period.  Over the past 12 months, multiple government stimulus programs have been implemented, including the CARES Act and the American Rescue Plan Act, which are responsible for a large part of the growth in average deposits. Given these increases, the potential exists for our deposit levels to be volatile throughout 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.  The Bank continues to strategically consider ways to safely deploy a portion of this liquidity. 

Average short-term borrowings decreased $29.2 million over the fourth quarter of 2020 and increased $30.5 million over the first quarter of 2020, which reflected a seasonal fluctuation in warehouse line borrowing needs to support CCHL’s loans held for sale. 

Capital

Shareowners’ equity was $324.4 million at March 31, 2021 compared to $320.8 million at December 31, 2020 and $328.5 million at March 31, 2020.  During the first quarter of 2021, shareowners’ equity was positively impacted by net income of $9.5 million, a $1.6 million increase in fair value of the interest rate swap related to subordinated debt, net adjustments totaling $0.3 million related to transactions under our stock compensation plans, stock compensation accretion of $0.2 million, and a $0.1 million decrease in the accumulated other comprehensive loss for our pension plan.  Shareowners’ equity was reduced by a common stock dividend of $2.5 million ($0.15 per share), reclassification of $4.2 million to temporary equity to increase the redemption value of the non-controlling interest in CCHL, and a $1.4 million decrease in the unrealized gain on investment securities.

At March 31, 2021, our total risk-based capital ratio was 17.20% compared to 17.30% at December 31, 2020 and 17.19% at March 31, 2020.  Our common equity tier 1 capital ratio was 13.63%, 13.71%, and 13.55%, respectively, on these dates.  Our leverage ratio was 8.97%, 9.33%, and 10.81%, 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 6.13% at March 31, 2021 compared to 6.25% and 7.98% at December 31, 2020 and March 31, 2020, respectively.

About Capital City Bank Group, Inc.

Capital City Bank Group, Inc. (NASDAQ: CCBG) is one of the largest publicly traded financial holding companies headquartered in Florida and has approximately $3.9 billion in assets.  We provide a full range of banking services, including traditional deposit and credit services, mortgage banking, asset management, trust, merchant services, bankcards and securities brokerage services.  Our bank subsidiary, Capital City Bank, was founded in 1895 and now has 57 banking offices and 85 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: 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, 2020, 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)Mar 31, 2021Dec 31, 2020Sep 30, 2020Jun 30, 2020Mar 31, 2020
Shareowners' Equity (GAAP) $324,426 $320,837 $339,425 $335,057 $328,507 
Less: Goodwill (GAAP)  89,095  89,095  89,095  89,095  89,275 
Tangible Shareowners' Equity (non-GAAP)A 235,331  231,742  250,330  245,962  239,232 
Total Assets (GAAP)  3,929,884  3,798,071  3,587,041  3,499,524  3,086,523 
Less: Goodwill (GAAP)  89,095  89,095  89,095  89,095  89,275 
Tangible Assets (non-GAAP)B$3,840,789 $3,708,976 $3,497,946 $3,410,429 $2,997,248 
Tangible Common Equity Ratio (non-GAAP)A/B 6.13% 6.25% 7.16% 7.21% 7.98%
Actual Diluted Shares Outstanding (GAAP)C 16,875,719  16,844,997  16,800,563  16,821,743  16,845,462 
Tangible Book Value per Diluted Share (non-GAAP)A/C$13.94 $13.76 $14.90 $14.62 $14.20 


CAPITAL CITY BANK GROUP, INC.       
EARNINGS HIGHLIGHTS       
Unaudited       
        
  Three Months Ended 
(Dollars in thousands, except per share data) Mar 31, 2021 Dec 31, 2020 Mar 31, 2020 
EARNINGS       
Net Income Attributable to Common Shareowners$9,506 $7,746$4,287 
Diluted Net Income Per Share$0.56 $0.46$0.25 
PERFORMANCE       
Return on Average Assets 1.01 %0.84%0.57%
Return on Average Equity 11.81  8.97 5.20 
Net Interest Margin 2.85  3.00 3.78 
Noninterest Income as % of Operating Revenue 54.90  55.00 37.52 
Efficiency Ratio 74.36 %74.36%74.89%
CAPITAL ADEQUACY       
Tier 1 Capital 16.08 %16.19%16.12%
Total Capital 17.20  17.30 17.19 
Leverage 8.97  9.33 10.81 
Common Equity Tier 1 13.63  13.71 13.55 
Tangible Common Equity (1) 6.13  6.25 7.98 
Equity to Assets 8.26 %8.45%10.64%
ASSET QUALITY       
Allowance as % of Non-Performing Loans 410.78 %405.66%432.61%
Allowance as a % of Loans HFI 1.07  1.19 1.13 
Net Charge-Offs as % of Average Loans HFI (0.10) 0.09 0.23 
Nonperforming Assets as % of Loans HFI and OREO 0.27  0.33 0.34 
Nonperforming Assets as % of Total Assets 0.14 %0.18%0.21%
STOCK PERFORMANCE       
High$28.98 $26.35$30.62 
Low 21.42  18.14 15.61 
Close$26.02 $24.58$20.12 
Average Daily Trading Volume 30,303  22,271 40,536 
        
(1)  Tangible common equity ratio is a non-GAAP financial measure.  For additional information, including a reconciliation to GAAP, refer to Page 5.


CAPITAL CITY BANK GROUP, INC.          
CONSOLIDATED STATEMENT OF FINANCIAL CONDITION
Unaudited          
           
 2021 2020
(Dollars in thousands)First Quarter Fourth Quarter Third Quarter Second Quarter First Quarter
ASSETS          
Cash and Due From Banks$73,973 $67,919 $76,509 $75,155 $72,676 
Funds Sold and Interest Bearing Deposits 851,910  860,630  626,104  513,273  196,936 
Total Cash and Cash Equivalents 925,883  928,549  702,613  588,428  269,612 
           
Investment Securities Available for Sale 406,245  324,870  328,253  341,180  382,514 
Investment Securities Held to Maturity 199,109  169,939  202,593  232,178  251,792 
   Total Investment Securities 605,354  494,809  530,846  573,358  634,306 
           
Loans Held for Sale ("HFS") 82,081  114,039  116,561  76,610  82,598 
           
Loans Held for Investment ("HFI"):          
Commercial, Financial, & Agricultural 413,819  393,930  402,997  421,270  249,020 
Real Estate - Construction 138,104  135,831  125,804  117,794  122,595 
Real Estate - Commercial 669,158  648,393  656,064  662,434  656,084 
Real Estate - Residential 358,849  342,664  335,713  353,831  354,150 
Real Estate - Home Equity 202,099  205,479  197,363  194,479  196,443 
Consumer 267,666  269,520  268,393  266,417  275,982 
Other Loans 7,082  9,879  10,488  4,883  6,580 
Overdrafts 950  730  1,339  1,069  1,533 
Total Loans Held for Investment 2,057,727  2,006,426  1,998,161  2,022,177  1,862,387 
Allowance for Credit Losses (22,026) (23,816) (23,137) (22,457) (21,083)
Loans Held for Investment, Net 2,035,701  1,982,610  1,975,024  1,999,720  1,841,304 
           
Premises and Equipment, Net 86,370  86,791  87,192  87,972  87,684 
Goodwill 89,095  89,095  89,095  89,095  89,275 
Other Real Estate Owned 110  808  1,227  1,059  1,463 
Other Assets 105,290  101,370  84,483  83,282  80,281 
Total Other Assets 280,865  278,064  261,997  261,408  258,703 
Total Assets$3,929,884 $3,798,071 $3,587,041 $3,499,524 $3,086,523 
           
LIABILITIES          
Deposits:          
Noninterest Bearing Deposits$1,473,891 $1,328,809 $1,378,314 $1,377,033 $1,066,607 
NOW Accounts 993,571  1,046,408  827,506  808,244  779,467 
Money Market Accounts 269,041  266,649  247,823  240,754  210,124 
Regular Savings Accounts 518,373  474,100  451,944  423,924  384,480 
Certificates of Deposit 103,232  101,594  103,859  105,041  104,907 
Total Deposits 3,358,108  3,217,560  3,009,446  2,954,996  2,545,585 
           
Short-Term Borrowings 55,687  79,654  90,936  63,958  76,516 
Subordinated Notes Payable 52,887  52,887  52,887  52,887  52,887 
Other Long-Term Borrowings 1,829  3,057  5,268  5,583  5,896 
Other Liabilities 109,487  102,076  71,880  75,702  70,044 
Total Liabilities 3,577,998  3,455,234  3,230,417  3,153,126  2,750,928 
           
Temporary Equity 27,460  22,000  17,199  11,341  7,088 
           
SHAREOWNERS' EQUITY          
Common Stock 169  168  168  168  168 
Additional Paid-In Capital 32,804  32,283  31,425  31,575  32,100 
Retained Earnings 335,324  332,528  333,545  328,570  321,772 
Accumulated Other Comprehensive Loss, Net of Tax (43,871) (44,142) (25,713) (25,256) (25,533)
Total Shareowners' Equity 324,426  320,837  339,425  335,057  328,507 
Total Liabilities, Temporary Equity and Shareowners' Equity$3,929,884 $3,798,071 $3,587,041 $3,499,524 $3,086,523 
           
OTHER BALANCE SHEET DATA          
Earning Assets$3,597,071 $3,475,904 $3,271,672 $3,185,418 $2,776,228 
Interest Bearing Liabilities 1,994,620  2,024,349  1,780,223  1,700,391  1,614,277 
Book Value Per Diluted Share$19.22 $19.05 $20.20 $19.92 $19.50 
Tangible Book Value Per Diluted Share(1) 13.94  13.76  14.90  14.62  14.20 
Actual Basic Shares Outstanding 16,852  16,791  16,761  16,780  16,812 
Actual Diluted Shares Outstanding 16,876  16,845  16,801  16,822  16,845 
(1)  Tangible book value per diluted share is a non-GAAP financial measure.  For additional information, including a reconciliation to GAAP, refer to Page 5.


CAPITAL CITY BANK GROUP, INC.          
CONSOLIDATED STATEMENT OF OPERATIONS
Unaudited          
           
  2021  2020
(Dollars in thousands, except per share data) First Quarter Fourth Quarter Third Quarter Second Quarter First Quarter
           
INTEREST INCOME          
Interest and Fees on Loans$23,350 $23,878 $23,594 $23,687 $23,593 
Investment Securities 1,883  2,096  2,426  2,737  3,015 
Funds Sold 213  180  146  88  757 
Total Interest Income 25,446  26,154  26,166  26,512  27,365 
           
INTEREST EXPENSE          
Deposits 208  201  190  218  939 
Short-Term Borrowings 412  639  498  421  132 
Subordinated Notes Payable 307  311  316  374  471 
Other Long-Term Borrowings 21  30  40  41  50 
Total Interest Expense 948  1,181  1,044  1,054  1,592 
Net Interest Income 24,498  24,973  25,122  25,458  25,773 
Provision for Credit Losses (982) 1,342  1,308  2,005  4,990 
Net Interest Income after Provision for Credit Losses 25,480  23,631  23,814  23,453  20,783 
           
NONINTEREST INCOME          
Deposit Fees 4,271  4,713  4,316  3,756  5,015 
Bank Card Fees 3,618  3,462  3,389  3,142  3,051 
Wealth Management Fees 3,090  3,069  2,808  2,554  2,604 
Mortgage Banking Revenues 17,125  17,711  22,983  19,397  3,253 
Other 1,722  1,568  1,469  1,350  1,555 
Total Noninterest Income 29,826  30,523  34,965  30,199  15,478 
           
NONINTEREST EXPENSE          
Compensation 26,064  26,722  26,164  23,658  19,736 
Occupancy, Net 5,967  5,976  5,906  5,798  4,979 
Other Real Estate, Net (118) 567  219  116  (798)
Other 8,563  8,083  8,053  7,731  7,052 
Total Noninterest Expense 40,476  41,348  40,342  37,303  30,969 
           
OPERATING PROFIT 14,830  12,806  18,437  16,349  5,292 
Income Tax Expense 2,787  2,833  3,165  2,950  1,282 
Net Income 12,043  9,973  15,272  13,399  4,010 
Pre-Tax Income Attributable to Noncontrolling Interest(2,537) (2,227) (4,875) (4,253) 277 
NET INCOME ATTRIBUTABLE TO COMMON SHAREOWNERS$9,506 $7,746 $10,397 $9,146 $4,287 
           
PER COMMON SHARE          
Basic Net Income$0.56 $0.46 $0.62 $0.55 $0.25 
Diluted Net Income 0.56  0.46  0.62  0.55  0.25 
Cash Dividend$0.15 $0.15 $0.14 $0.14 $0.14 
AVERAGE SHARES          
Basic  16,838  16,763  16,771  16,797  16,808 
Diluted  16,862  16,817  16,810  16,839  16,842 


CAPITAL CITY BANK GROUP, INC.          
ALLOWANCE FOR CREDIT LOSSES ("ACL")          
AND RISK ELEMENT ASSETS          
Unaudited          
           
  2021  2020
(Dollars in thousands, except per share data) First Quarter Fourth Quarter Third Quarter Second Quarter First Quarter
ACL - HELD FOR INVESTMENT          
Balance at Beginning of Period$23,816 $23,137 $22,457 $21,083 $13,905 
Impact of Adopting ASC 326 (CECL) -  -  -  -  3,269 
Provision for Credit Losses (2,312) 1,165  1,265  1,615  4,990 
Net Charge-Offs (522) 486  585  241  1,081 
Balance at End of Period$22,026 $23,816 $23,137 $22,457 $21,083 
As a % of Loans HFI 1.07% 1.19% 1.16% 1.11% 1.13%
As a % of Nonperforming Loans 410.78% 405.66% 420.30% 322.37% 432.61%
ACL - UNFUNDED COMMITMENTS          
Balance at Beginning of Period 1,644 $1,467 $1,424 $1,033 $157 
Impact of Adopting ASC 326 (CECL) -  -  -  -  876 
Provision for Credit Losses 1,330  177  43  391  - 
Balance at End of Period(1) 2,974  1,644  1,467  1,424  1,033 
CHARGE-OFFS          
Commercial, Financial and Agricultural$69 $104 $137 $186 $362 
Real Estate - Commercial -  -  17  -  11 
Real Estate - Residential 6  38  1  1  110 
Real Estate - Home Equity 5  10  58  52  31 
Consumer 564  668  619  634  864 
Overdrafts 492  564  450  541  702 
Total Charge-Offs$1,136 $1,384 $1,282 $1,414 $2,080 
RECOVERIES          
Commercial, Financial and Agricultural$136 $64 $74 $74 $40 
Real Estate - Construction -  50  -  -  - 
Real Estate - Commercial 645  27  30  70  191 
Real Estate - Residential 75  153  35  51  40 
Real Estate - Home Equity 124  40  41  64  33 
Consumer 311  306  280  365  268 
Overdrafts 367  258  237  549  427 
Total Recoveries$1,658 $898 $697 $1,173 $999 
NET CHARGE-OFFS$(522)$486 $585 $241 $1,081 
Net Charge-Offs as a % of Average Loans HFI(2) (0.10)% 0.09% 0.11% 0.05% 0.23%
RISK ELEMENT ASSETS          
Nonaccruing Loans$5,362 $5,871 $5,505 $6,966 $4,874 
Other Real Estate Owned 110  808  1,227  1,059  1,463 
Total Nonperforming Assets ("NPAs")$5,472 $6,679 $6,732 $8,025 $6,337 
           
Past Due Loans 30-89 Days$2,622 $4,594 $3,191 $2,948 $5,077 
Classified Loans 20,608  17,631  16,772  17,091  16,548 
Performing Troubled Debt Restructuring's$13,597 $13,887 $14,693 $15,133 $15,934 
           
Nonperforming Loans as a % of Loans HFI 0.26% 0.29% 0.28% 0.34% 0.26%
NPAs as a % of Loans HFI and Other Real Estate 0.27% 0.33% 0.34% 0.40% 0.34%
NPAs as a % of  Total Assets 0.14% 0.18% 0.19% 0.23% 0.21%
           
(1) Recorded in other liabilities          
(2) Annualized          


CAPITAL CITY BANK GROUP, INC.              
AVERAGE BALANCE AND INTEREST RATES                 
Unaudited                                   
                                    
  First Quarter 2021  Fourth Quarter 2020  Third Quarter 2020  Second Quarter 2020  First Quarter 2020 
(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$106,242 $970 3.70%$121,052 $878 3.85%$92,522 $671 3.64%$74,965  550 3.41%$34,923 $210 2.64%
Loans Held for Investment(1) 2,044,363  22,483 4.46  1,993,470  23,103 4.55  2,005,178  23,027 4.53  1,982,960  23,235 4.70  1,847,780  23,482 5.11 
                                    
Investment Securities                                   
Taxable Investment Securities 528,842  1,863 1.41  513,277  2,072 1.61  553,395  2,401 1.73  601,509  2,708 1.80  629,512  2,995 1.91 
Tax-Exempt Investment Securities(1) 3,844  25 2.61  4,485  30 2.71  4,860  32 2.66  5,865  37 2.51  5,293  25 1.86 
                                    
Total Investment Securities 532,686  1,888 1.42  517,762  2,102 1.62  558,255  2,433 1.74  607,374  2,745 1.81  634,805  3,020 1.91 
                                    
Funds Sold 814,638  214 0.11  705,125  180 0.10  567,883  146 0.10  351,473  88 0.10  234,372  757 1.30 
                                    
Total Earning Assets 3,497,929 $25,555 2.96% 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%
                                    
Cash and Due From Banks 68,978       73,968       69,893       72,647       56,958      
Allowance for Loan Losses (24,128)      (23,725)      (22,948)      (21,642)      (14,389)     
Other Assets 278,742       264,784       268,549       261,449       244,339      
                                    
Total Assets$3,821,521      $3,652,436      $3,539,332      $3,329,226      $3,038,788      
                                    
LIABILITIES:                                   
Interest Bearing Deposits                                   
NOW Accounts$985,517 $76 0.03%$879,564 $66 0.03%$826,776 $61 0.03%$789,378 $78 0.04%$808,811 $725 0.36%
Money Market Accounts 269,829  33 0.05  261,543  34 0.05  247,185  32 0.05  222,377  40 0.07  212,211  117 0.22 
Savings Accounts 492,252  60 0.05  466,116  57 0.05  438,762  54 0.05  409,366  50 0.05  379,237  46 0.05 
Time Deposits 102,089  39 0.15  102,809  44 0.17  104,522  43 0.16  104,718  50 0.19  105,542  51 0.19 
Total Interest Bearing Deposits 1,849,687  208 0.05% 1,710,032  201 0.05% 1,617,245  190 0.05% 1,525,839  218 0.06% 1,505,801  939 0.25%
                                    
Short-Term Borrowings 67,033  412 2.49% 95,280  639 2.67% 74,557  498 2.66% 73,377  421 2.31% 32,915  132 1.61%
Subordinated Notes Payable 52,887  307 2.32  52,887  311 2.30  52,887  316 2.34  52,887  374 2.80  52,887  471 3.52 
Other Long-Term Borrowings 2,736  21 3.18  3,700  30 3.18  5,453  40 2.91  5,766  41 2.84  6,312  50 3.21 
                                    
Total Interest Bearing Liabilities 1,972,343 $948 0.19% 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%
                                    
Noninterest Bearing Deposits 1,389,821       1,356,104       1,354,032       1,257,614       1,046,889      
Other Liabilities 111,050       74,605       83,192       72,073       59,587      
                                    
Total Liabilities 3,473,214       3,292,608       3,187,366       2,987,556       2,704,391      
Temporary Equity 21,977       16,154       11,893       8,155       2,506      
                                    
SHAREOWNERS' EQUITY: 326,330       343,674       340,073       333,515       331,891      
                                    
Total Liabilities, Temporary Equity and Shareowners' Equity$3,821,521      $3,652,436      $3,539,332      $3,329,226      $3,038,788      
                                    
Interest Rate Spread  $24,607 2.77%  $25,082 2.88%  $25,233 3.01%  $25,564 3.30%  $25,877 3.61%
                                    
Interest Income and Rate Earned(1)   25,555 2.96    26,263 3.14    26,277 3.25    26,618 3.55    27,469 4.01 
Interest Expense and Rate Paid(2)   948 0.11    1,181 0.14    1,044 0.13    1,054 0.14    1,592 0.23 
                                    
Net Interest Margin  $24,607 2.85%  $25,082 3.00%  $25,233 3.12%  $25,564 3.41%  $25,877 3.78%
                                    
(1)   Interest and average rates are calculated on a tax-equivalent basis using a 21% Federal tax rate. 
(2)  Rate calculated based on average earning assets.                


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

 


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