TALLAHASSEE, Fla., Oct. 25, 2022 (GLOBE NEWSWIRE) -- Capital City Bank Group, Inc. (NASDAQ: CCBG) today reported net income attributable to common shareowners of $11.3 million, or $0.67 per diluted share, for the third quarter of 2022 compared to net income of $8.7 million, or $0.51 per diluted share, for the second quarter of 2022, and $10.1 million, or $0.60 per diluted share, for the third quarter of 2021.
For the first nine months of 2022, net income attributable to common shareowners totaled $28.5 million, or $1.68 per diluted share, compared to net income of $27.0 million, or $1.60 per diluted share, for the same period of 2021.
QUARTER HIGHLIGHTS (3rd Quarter 2022 versus 2nd Quarter 2022)
- Continued strong growth in net interest income of 18% - net interest margin percentage grew 44 bps to 3.31%
- Solid loan growth of 6.0% (end of period) and 8.6% (average)
- Continued strong credit quality metrics – higher credit loss provision driven primarily by loan growth
- Noninterest income decreased $2.0 million, or 7.9%, due to lower mortgage banking revenues at CCHL -- strong adjustable rate portfolio production by CCHL contributed to loan growth for the quarter
- Noninterest expense decreased $0.7 million, or 1.7%, primarily due to lower mortgage and wealth commissions, partially offset by higher performance-based compensation
- Tangible book value per share increased $0.07, or 0.4%
“We continued to see steady loan growth and margin expansion this quarter, which contributed to nice improvement in our operating leverage,” said William G. Smith, Jr., Chairman, President and CEO of Capital City Bank Group. “I was particularly pleased to see tangible book value growth and stable deposit balances, both current headwinds for the industry. On a relative basis, our residential mortgage business has held up well given the higher rate environment and slowdown in secondary market loan sales, and we continued to use our balance sheet to book a steady flow of adjustable rate portfolio production, which has contributed to our earnings. Our credit metrics remain strong, and a large portion of our credit loss provision for the quarter was driven by loan growth. While the environment remains highly uncertain, I like our positioning, particularly, the value that our core deposit franchise should contribute in a higher rate environment. I also feel good about our credit risk management discipline. The team is excited to open two new full-service offices in Watersound, Florida and Marietta, Georgia in the fourth quarter and to ramp up our service to those communities. As we plan for 2023, we are focused on strategies that will further diversify and grow our revenue base, both product and geography, and improve our efficiency.”
Discussion of Operating Results
Net Interest Income/Net Interest Margin
Tax-equivalent net interest income for the third quarter of 2022 totaled $33.4 million, compared to $28.4 million for the second quarter of 2022, and $27.7 million for the third quarter of 2021. For the first nine months of 2022, tax-equivalent net interest income totaled $86.6 million compared to $78.4 million for the same period of 2021. Compared to the referenced prior periods, the increase primarily reflected strong loan growth, higher investment balances, and higher rates across a majority of our earning assets.
Our net interest margin for the third quarter of 2022 was 3.31%, an increase of 44 basis points over the second quarter of 2022 and 33 basis points over the third quarter of 2021, both driven by higher interest rates and an overall improved earning asset mix. For the month of September 2022, our net interest margin was 3.41%. Excluding the impact of overnight funds in excess of $200 million, our net interest margin for the third quarter of 2022 was 3.54%. Compared to the nine month period of 2021, the net interest margin remained flat at 2.91% as the favorable impact of higher interest rates and an improved earning asset mix offset the favorable impact in 2021 from a significant level of SBA PPP fee income.
Provision for Credit Losses
We recorded a provision for credit losses of $2.1 million for the third quarter of 2022 compared to $1.5 million in the second quarter of 2022 and no provision for the third quarter of 2021. For the first nine months of 2022, the provision was $3.6 million compared to a benefit of $1.6 million for the same period of 2021. The higher level of provision compared to all prior periods was primarily attributable to strong loan growth. The credit loss provision in 2021 was favorably impacted by strong loan recoveries. We discuss the allowance for credit losses further below.
Noninterest Income and Noninterest Expense
Noninterest income for the third quarter of 2022 totaled $22.9 million compared to $24.9 million for the second quarter of 2022 and $26.6 million for the third quarter of 2021. The $2.0 million decrease from the second quarter of 2022 was primarily attributable to lower mortgage banking revenues of $1.9 million. Compared to the third quarter of 2021, the $3.6 million decrease was attributable to lower mortgage banking revenues of $5.2 million, partially offset by higher deposit fees of $0.9 million, other income of $0.3 million, and wealth management fees of $0.3 million.
For the first nine months of 2022, noninterest income totaled $73.7 million compared to $82.9 million for the same period of 2021 and reflected lower mortgage banking revenues of $17.5 million, partially offset by higher deposit fees of $3.0 million and wealth management fees of $4.4 million (primarily insurance revenues of $3.5 million and retail brokerage fees of $0.9 million). Lower mortgage banking revenues for 2022 reflected a reduction in refinancing activity and, to a lesser degree, lower purchase mortgage originations primarily driven by higher interest rates. In addition, gain on sale margins have been pressured due to a lower level of governmental loan originations and mandatory delivery loan sales (both of which provide a higher gain on sale percentage). During 2022, strong best efforts origination volume has allowed us to book a steady flow of adjustable rate residential loans in our portfolio and has contributed to loan growth and earnings. In addition, continued stability in our construction/permanent loan program has partially offset the slowdown in secondary market originations. For 2022, Capital City Home Loans (CCHL) contributed $0.5 million ($0.03 per diluted share) to earnings versus $3.4 million ($0.21 per diluted share) in 2021, which has largely been offset by a $1.2 million ($0.07 per diluted share) contribution to earnings by Capital City Strategic Wealth (CCSW) and improvement in both deposit fees and retail brokerage fees, which reflects our continued commitment to revenue diversification.
Noninterest expense for the third quarter of 2022 totaled $39.8 million compared to $40.5 million for the second quarter of 2022 and $39.7 million for the third quarter of 2021. The $0.7 million decrease from the second quarter of 2022 was primarily attributable to lower variable/performance-based compensation expense at CCHL and CCSW totaling $1.5 million, partially offset by variable/performance-based compensation of $0.6 million and base salaries (primarily annual merit raises) of $0.2 million at the Bank. Compared to the third quarter of 2021, the $0.1 million increase reflected higher other real estate expense of $1.0 million, partially offset by lower compensation expense of $0.5 million and pension settlement expense of $0.4 million. The higher level of other real estate expense was attributable to a gain from the sale of a banking office in the third quarter of 2021. The decrease in compensation expense reflected lower variable/performance-based compensation at CCHL totaling $1.6 million, partially offset by higher variable/performance-based compensation of $0.7 million and base salaries of $0.3 million at the Bank.
For the first nine months of 2022, noninterest expense totaled $119.5 million compared to $122.3 million for the same period of 2021 and reflected lower compensation expense of $1.7 million, pension settlement expense of $2.0 million, and other expense of $0.8 million, partially offset by higher other real estate expense of $1.4 million and occupancy expense of $0.3 million. The reduction in compensation expense was primarily due to lower variable/performance-based compensation at CCHL totaling $7.0 million, partially offset by higher variable/performance-based compensation totaling $2.8 million, base salaries (merit and new market staffing additions) of $2.0 million, and associate insurance expense (utilized self-insurance reserves in 2021) of $0.6 million at the Bank. A lower level of lump sum retirement payments drove the decrease in pension settlement expense compared to both prior year periods. We expect additional pension settlement expense for the remainder of 2022 based on our current estimate of lump sum pension pay-outs to retirees. The net $0.8 million decrease in other expense reflected lower pension plan expense (non-service component) of $3.7 million that was partially offset by higher advertising and travel/entertainment expense totaling $1.0 million (return to pre-pandemic levels and market expansion), mortgage servicing right amortization of $0.6 million at CCHL, other losses of $0.5 million (debit card fraud), and other miscellaneous expenses related to training, hiring, and variable loan related costs. The sale of two banking offices in 2021 drove the increase in other real estate expense.
Income Taxes
We realized income tax expense of $3.1 million (effective rate of 21.4%) for the third quarter of 2022 compared to $2.2 million (effective rate of 19.4%) for the second quarter of 2022 and $2.9 million (effective rate of 20.3%) for the third quarter of 2021. For the first nine months of 2022, we realized income tax expense of $7.5 million (effective rate of 20.3%) compared to $7.8 million (effective rate of 19.4%) for the same period of 2021. Absent discrete items, we expect our annual effective tax rate to approximate 21%.
Discussion of Financial Condition
Earning Assets
Average earning assets totaled $4.010 billion for the third quarter of 2022, an increase of $35.7 million, or 0.9%, over the second quarter of 2022, and an increase of $218.6 million, or 5.8%, over the fourth quarter of 2021. The increase over both prior periods was primarily driven by higher deposit balances (see below – Funding). The mix of earning assets continues to improve driven by strong loan growth.
We maintained an average net overnight funds (interest bearing deposits with banks plus FED funds sold less FED funds purchased) sold position of $570.0 million in the third quarter of 2022 compared to $691.9 million in the second quarter of 2022 and $789.1 million in the fourth quarter of 2021. The declining overnight funds position reflects growth in average loans.
Average loans held for investment (“HFI”) increased $179.4 million, or 8.6%, over the second quarter of 2022 and increased $315.8 million, or 16.2%, over the fourth quarter of 2021. Period end loans increased $132.5 million, or 6.0%, over the second quarter of 2022 and $414.7 million, or 21.5%, over the fourth quarter of 2021. The growth in 2022 has been broad based with increases realized in all loan categories, more significantly, residential mortgage, residential construction and commercial real estate. The slowdown in secondary market residential loan sales has allowed us to book a steady flow of CCHL’s adjustable rate production in our loan portfolio through 2022.
Allowance for Credit Losses
At September 30, 2022, the allowance for credit losses for HFI loans totaled $22.5 million compared to $21.3 million at June 30, 2022 and $21.6 million at December 31, 2021. Activity within the allowance is provided on Page 9. The $1.2 million increase in the allowance for the third quarter was driven by incremental reserves needed for loan growth and, to a lesser extent, a higher projected rate of unemployment and its potential effect on rates of default. Net charge-offs decreased $0.4 million to $0.7 million for the third quarter of 2022. At September 30, 2022, the allowance represented 0.96% of HFI loans and provided coverage of 964% of nonperforming loans compared to 0.96% and 678%, respectively, at June 30, 2022, and 1.12% and 500%, respectively, at December 31, 2021.
Credit Quality
Overall credit quality remains strong. Nonperforming assets (nonaccrual loans and other real estate) totaled $2.4 million at September 30, 2022 compared to $3.2 million at June 30, 2022 and $4.3 million at December 31, 2021. At September 30, 2022, nonperforming assets as a percent of total assets equaled 0.06%, compared to 0.07% at June 30, 2022 and 0.10% at December 31, 2021. Nonaccrual loans totaled $2.4 million at September 30, 2022, a $0.7 million decrease from June 30, 2022 and a $1.9 million decrease from December 31, 2021. Further, classified loans increased $1.4 million over the second quarter of 2022 to $21.0 million.
Funding (Deposits/Debt)
Average total deposits were $3.770 billion for the third quarter of 2022, an increase of $4.5 million, or 0.1%, over the second quarter of 2022 and $220.7 million, or 6.2%, over the fourth quarter of 2021. Compared to the second quarter of 2022, the increase reflected higher noninterest bearing and savings balances. Compared to the fourth quarter of 2021, we have had strong growth in our noninterest bearing deposits, NOW accounts, and savings account balances. Over the past few years, we have experienced strong core deposit growth. We continue to closely monitor our cost of deposits and deposit mix as we manage through this rising rate environment. It is anticipated that liquidity levels will remain strong given our current level of overnight funds.
Average borrowings increased $14.9 million over the second quarter of 2022, primarily due to an increase in short-term repurchase agreements and CCHL’s warehouse line.
Capital
Shareowners’ equity was $373.2 million at September 30, 2022 compared to $371.7 million at June 30, 2022 and $383.2 million at December 31, 2021. For the first nine months of 2022, shareowners’ equity was positively impacted by net income attributable to common shareowners of $28.5 million, a $3.3 million increase in the fair value of the interest rate swap related to subordinated debt, stock compensation accretion of $0.9 million, net adjustments totaling $0.8 million related to transactions under our stock compensation plans, and a $0.4 million decrease in the accumulated other comprehensive loss for our pension plan. Shareowners’ equity was reduced by common stock dividends of $8.3 million ($0.49 per share) and a $35.6 million increase in the unrealized loss on investment securities.
At September 30, 2022, our total risk-based capital ratio was 15.75% compared to 16.07% at June 30, 2022 and 17.15% at December 31, 2021. Our common equity tier 1 capital ratio was 12.83%, 13.07%, and 13.86%, respectively, on these dates. Our leverage ratio was 8.91%, 8.77%, and 8.95%, respectively, on these dates. Further, our tangible common equity ratio was 6.61% at September 30, 2022 compared to 6.54% and 6.95% at June 30, 2022 and December 31, 2021, respectively. The decline in our regulatory capital ratios compared to 2021 was attributable to strong loan growth during 2022. At September 30, 2022, all of our regulatory capital ratios exceeded the threshold to be designated as “well-capitalized” under the Basel III capital standards.
About Capital City Bank Group, Inc.
Capital City Bank Group, Inc. (NASDAQ: CCBG) is one of the largest publicly traded financial holding companies headquartered in Florida and has approximately $4.3 billion in assets. We provide a full range of banking services, including traditional deposit and credit services, mortgage banking, asset management, trust, merchant services, bankcards, securities brokerage services and financial advisory services, including the sale of life insurance, risk management and asset protection services. Our bank subsidiary, Capital City Bank, was founded in 1895 and now has 57 banking offices and 86 ATMs/ITMs in Florida, Georgia and Alabama. For more information about Capital City Bank Group, Inc., visit www.ccbg.com.
FORWARD-LOOKING STATEMENTS
Forward-looking statements in this Press Release are based on current plans and expectations that are subject to uncertainties and risks, which could cause our future results to differ materially. The following factors, among others, could cause our actual results to differ: fluctuations in inflation, interest rates, or monetary policies; the accuracy of the our financial statement estimates and assumptions; legislative or regulatory changes; the effects of security breaches and computer viruses that may affect our computer systems; 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; risks from the ongoing COVID-19 pandemic; and our ability to manage the risks involved in the foregoing. Additional factors can be found in our Annual Report on Form 10-K for the fiscal year ended December 31, 2021, and our other filings with the SEC, which are available at the SEC’s internet site (http://www.sec.gov). Forward-looking statements in this Press Release speak only as of the date of the Press Release, and we assume no obligation to update forward-looking statements or the reasons why actual results could differ.
USE OF NON-GAAP FINANCIAL MEASURES
We present a tangible common equity ratio and a tangible book value per diluted share that removes the effect of goodwill and other intangibles resulting from merger and acquisition activity. We believe these measures are useful to investors because it allows investors to more easily compare our capital adequacy to other companies in the industry.
The GAAP to non-GAAP reconciliations are provided below.
| (Dollars in Thousands, except per share data) | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | |||||||||||
| Shareowners' Equity (GAAP) | $ | 373,165 | $ | 371,675 | $ | 372,145 | $ | 383,166 | $ | 348,868 | ||||||
| Less: Goodwill and Other Intangibles (GAAP) | 93,133 | 93,173 | 93,213 | 93,253 | 93,293 | |||||||||||
| Tangible Shareowners' Equity (non-GAAP) | A | 280,032 | 278,502 | 278,932 | 289,913 | 255,575 | ||||||||||
| Total Assets (GAAP) | 4,332,671 | 4,354,297 | 4,310,045 | 4,263,849 | 4,048,733 | |||||||||||
| Less: Goodwill and Other Intangibles (GAAP) | 93,133 | 93,173 | 93,213 | 93,253 | 93,293 | |||||||||||
| Tangible Assets (non-GAAP) | B | $ | 4,239,538 | $ | 4,261,124 | $ | 4,216,832 | $ | 4,170,596 | $ | 3,955,440 | |||||
| Tangible Common Equity Ratio (non-GAAP) | A/B | 6.61 | % | 6.54 | % | 6.61 | % | 6.95 | % | 6.46 | % | |||||
| Actual Diluted Shares Outstanding (GAAP) | C | 16,998,177 | 16,981,614 | 16,962,362 | 16,935,389 | 16,911,715 | ||||||||||
| Tangible Book Value per Diluted Share (non-GAAP) | A/C | $ | 16.47 | $ | 16.40 | $ | 16.44 | $ | 17.12 | $ | 15.11 | |||||
| CAPITAL CITY BANK GROUP, INC. | ||||||||||||
| EARNINGS HIGHLIGHTS | ||||||||||||
| Unaudited | ||||||||||||
| Three Months Ended | Nine Months Ended | |||||||||||
| (Dollars in thousands, except per share data) | Sep 30, 2022 | Jun 30, 2022 | Sep 30, 2021 | Sep 30, 2022 | Sep 30, 2021 | |||||||
| EARNINGS | ||||||||||||
| Net Income Attributable to Common Shareowners | $ | 11,315 | $ | 8,713 | $ | 10,091 | $ | 28,483 | $ | 27,024 | ||
| Diluted Net Income Per Share | $ | 0.67 | $ | 0.51 | $ | 0.60 | $ | 1.68 | $ | 1.60 | ||
| PERFORMANCE | ||||||||||||
| Return on Average Assets | 1.03 | % | 0.81 | % | 0.99 | % | 0.88 | % | 0.92 | % | ||
| Return on Average Equity | 11.83 | 9.36 | 11.72 | 10.05 | 10.87 | |||||||
| Net Interest Margin | 3.31 | 2.87 | 2.98 | 2.91 | 2.91 | |||||||
| Noninterest Income as % of Operating Revenue | 40.76 | 46.78 | 48.99 | 46.03 | 51.47 | |||||||
| Efficiency Ratio | 70.66 | % | 75.96 | % | 73.09 | % | 74.60 | % | 75.83 | % | ||
| CAPITAL ADEQUACY | ||||||||||||
| Tier 1 Capital | 14.80 | % | 15.13 | % | 15.69 | % | 14.80 | % | 15.69 | % | ||
| Total Capital | 15.75 | 16.07 | 16.70 | 15.75 | 16.70 | |||||||
| Leverage | 8.91 | 8.77 | 9.05 | 8.91 | 9.05 | |||||||
| Common Equity Tier 1 | 12.83 | 13.07 | 13.45 | 12.83 | 13.45 | |||||||
| Tangible Common Equity (1) | 6.61 | 6.54 | 6.46 | 6.61 | 6.46 | |||||||
| Equity to Assets | 8.61 | % | 8.54 | % | 8.62 | % | 8.61 | % | 8.62 | % | ||
| ASSET QUALITY | ||||||||||||
| Allowance as % of Non-Performing Loans | 934.53 | % | 677.57 | % | 710.39 | % | 934.53 | % | 710.39 | % | ||
| Allowance as a % of Loans HFI | 0.96 | 0.96 | 1.11 | 0.96 | 1.11 | |||||||
| Net Charge-Offs as % of Average Loans HFI | 0.12 | 0.22 | 0.03 | 0.17 | (0.05 | ) | ||||||
| Nonperforming Assets as % of Loans HFI and OREO | 0.10 | 0.15 | 0.17 | 0.10 | 0.17 | |||||||
| Nonperforming Assets as % of Total Assets | 0.06 | % | 0.07 | % | 0.08 | % | 0.06 | % | 0.08 | % | ||
| STOCK PERFORMANCE | ||||||||||||
| High | $ | 33.93 | $ | 28.55 | $ | 26.10 | $ | 33.93 | $ | 28.98 | ||
| Low | 27.41 | 24.43 | 22.02 | 24.43 | 21.42 | |||||||
| Close | $ | 31.11 | $ | 27.89 | $ | 24.74 | $ | 31.11 | $ | 24.74 | ||
| Average Daily Trading Volume | 30,546 | 25,342 | 30,515 | 26,677 | 29,925 | |||||||
| (1) Tangible common equity ratio is a non-GAAP financial measure. For additional information, including a reconciliation to GAAP, refer to Page 4. | ||||||||||||
| CAPITAL CITY BANK GROUP, INC. | |||||||||||||||
| CONSOLIDATED STATEMENT OF FINANCIAL CONDITION | |||||||||||||||
| Unaudited | |||||||||||||||
| 2022 | 2021 | ||||||||||||||
| (Dollars in thousands) | Third Quarter | Second Quarter | First Quarter | Fourth Quarter | Third Quarter | ||||||||||
| ASSETS | |||||||||||||||
| Cash and Due From Banks | $ | 72,686 | $ | 91,209 | $ | 77,963 | $ | 65,313 | $ | 73,132 | |||||
| Funds Sold and Interest Bearing Deposits | 497,679 | 603,315 | 790,465 | 970,041 | 708,988 | ||||||||||
| Total Cash and Cash Equivalents | 570,365 | 694,524 | 868,428 | 1,035,354 | 782,120 | ||||||||||
| Investment Securities Available for Sale | 416,745 | 601,405 | 624,361 | 654,611 | 645,844 | ||||||||||
| Investment Securities Held to Maturity | 676,178 | 528,258 | 518,678 | 339,601 | 341,228 | ||||||||||
| Other Equity Securities | 1,349 | 900 | 855 | 861 | - | ||||||||||
| Total Investment Securities | 1,094,272 | 1,130,563 | 1,143,894 | 995,073 | 987,072 | ||||||||||
| Loans Held for Sale | 50,304 | 48,708 | 50,815 | 52,532 | 77,036 | ||||||||||
| Loans Held for Investment ("HFI"): | |||||||||||||||
| Commercial, Financial, & Agricultural | 246,304 | 247,902 | 230,213 | 223,086 | 218,929 | ||||||||||
| Real Estate - Construction | 237,718 | 225,664 | 174,293 | 174,394 | 177,443 | ||||||||||
| Real Estate - Commercial | 715,870 | 699,093 | 669,110 | 663,550 | 683,379 | ||||||||||
| Real Estate - Residential | 573,963 | 478,121 | 368,020 | 346,756 | 355,958 | ||||||||||
| Real Estate - Home Equity | 202,512 | 194,658 | 188,174 | 187,821 | 187,642 | ||||||||||
| Consumer | 347,949 | 359,906 | 347,785 | 321,511 | 309,983 | ||||||||||
| Other Loans | 20,822 | 6,854 | 6,692 | 13,265 | 6,792 | ||||||||||
| Overdrafts | 1,047 | 1,455 | 1,222 | 1,082 | 1,299 | ||||||||||
| Total Loans Held for Investment | 2,346,185 | 2,213,653 | 1,985,509 | 1,931,465 | 1,941,425 | ||||||||||
| Allowance for Credit Losses | (22,510 | ) | (21,281 | ) | (20,756 | ) | (21,606 | ) | (21,500 | ) | |||||
| Loans Held for Investment, Net | 2,323,675 | 2,192,372 | 1,964,753 | 1,909,859 | 1,919,925 | ||||||||||
| Premises and Equipment, Net | 81,736 | 82,932 | 82,518 | 83,412 | 84,750 | ||||||||||
| Goodwill and Other Intangibles | 93,133 | 93,173 | 93,213 | 93,253 | 93,293 | ||||||||||
| Other Real Estate Owned | 13 | 90 | 17 | 17 | 192 | ||||||||||
| Other Assets | 119,173 | 111,935 | 106,407 | 94,349 | 104,345 | ||||||||||
| Total Other Assets | 294,055 | 288,130 | 282,155 | 271,031 | 282,580 | ||||||||||
| Total Assets | $ | 4,332,671 | $ | 4,354,297 | $ | 4,310,045 | $ | 4,263,849 | $ | 4,048,733 | |||||
| LIABILITIES | |||||||||||||||
| Deposits: | |||||||||||||||
| Noninterest Bearing Deposits | $ | 1,737,046 | $ | 1,724,671 | $ | 1,704,329 | $ | 1,668,912 | $ | 1,592,345 | |||||
| NOW Accounts | 990,021 | 1,036,757 | 1,062,498 | 1,070,154 | 926,201 | ||||||||||
| Money Market Accounts | 292,932 | 289,337 | 288,877 | 274,611 | 286,065 | ||||||||||
| Regular Savings Accounts | 646,526 | 639,594 | 614,599 | 599,811 | 559,714 | ||||||||||
| Certificates of Deposit | 92,853 | 95,899 | 95,204 | 99,374 | 101,637 | ||||||||||
| Total Deposits | 3,759,378 | 3,786,258 | 3,765,507 | 3,712,862 | 3,465,962 | ||||||||||
| Short-Term Borrowings | 52,271 | 39,463 | 30,865 | 34,557 | 51,410 | ||||||||||
| Subordinated Notes Payable | 52,887 | 52,887 | 52,887 | 52,887 | 52,887 | ||||||||||
| Other Long-Term Borrowings | 562 | 612 | 806 | 884 | 1,610 | ||||||||||
| Other Liabilities | 84,657 | 93,319 | 77,323 | 67,735 | 113,720 | ||||||||||
| Total Liabilities | 3,949,755 | 3,972,539 | 3,927,388 | 3,868,925 | 3,685,589 | ||||||||||
| Temporary Equity | 9,751 | 10,083 | 10,512 | 11,758 | 14,276 | ||||||||||
| SHAREOWNERS' EQUITY | |||||||||||||||
| Common Stock | 170 | 170 | 169 | 169 | 169 | ||||||||||
| Additional Paid-In Capital | 36,234 | 35,738 | 35,188 | 34,423 | 33,876 | ||||||||||
| Retained Earnings | 384,964 | 376,532 | 370,531 | 364,788 | 359,550 | ||||||||||
| Accumulated Other Comprehensive Loss, Net of Tax | (48,203 | ) | (40,765 | ) | (33,743 | ) | (16,214 | ) | (44,727 | ) | |||||
| Total Shareowners' Equity | 373,165 | 371,675 | 372,145 | 383,166 | 348,868 | ||||||||||
| Total Liabilities, Temporary Equity and Shareowners' Equity | $ | 4,332,671 | $ | 4,354,297 | $ | 4,310,045 | $ | 4,263,849 | $ | 4,048,733 | |||||
| OTHER BALANCE SHEET DATA | |||||||||||||||
| Earning Assets | $ | 3,988,440 | $ | 3,996,238 | $ | 3,970,684 | $ | 3,949,111 | $ | 3,714,521 | |||||
| Interest Bearing Liabilities | 2,128,052 | 2,154,549 | 2,145,736 | 2,132,278 | 1,979,524 | ||||||||||
| Book Value Per Diluted Share | $ | 21.95 | $ | 21.89 | $ | 21.94 | $ | 22.63 | $ | 20.63 | |||||
| Tangible Book Value Per Diluted Share(1) | 16.47 | 16.40 | 16.44 | 17.12 | 15.11 | ||||||||||
| Actual Basic Shares Outstanding | 16,962 | 16,959 | 16,948 | 16,892 | 16,878 | ||||||||||
| Actual Diluted Shares Outstanding | 16,998 | 16,982 | 16,962 | 16,935 | 16,912 | ||||||||||
| (1) Tangible book value per diluted share is a non-GAAP financial measure. For additional information, including a reconciliation to GAAP, refer to Page 4. | |||||||||||||||
| CAPITAL CITY BANK GROUP, INC. | |||||||||||||||||||||
| CONSOLIDATED STATEMENT OF OPERATIONS | |||||||||||||||||||||
| Unaudited | |||||||||||||||||||||
| 2022 | 2021 | September 30, | |||||||||||||||||||
| (Dollars in thousands, except per share data) | Third Quarter | Second Quarter | First Quarter | Fourth Quarter | Third Quarter | 2022 | 2021 | ||||||||||||||
| INTEREST INCOME | |||||||||||||||||||||
| Loans, including Fees | $ | 27,761 | $ | 24,072 | $ | 22,133 | $ | 22,744 | $ | 25,885 | $ | 73,966 | $ | 73,817 | |||||||
| Investment Securities | 4,372 | 3,840 | 2,896 | 2,505 | 2,350 | 11,108 | 6,287 | ||||||||||||||
| Federal Funds Sold and Interest Bearing Deposits | 3,231 | 1,408 | 409 | 300 | 285 | 5,048 | 698 | ||||||||||||||
| Total Interest Income | 35,364 | 29,320 | 25,438 | 25,549 | 28,520 | 90,122 | 80,802 | ||||||||||||||
| INTEREST EXPENSE | |||||||||||||||||||||
| Deposits | 1,052 | 266 | 224 | 213 | 210 | 1,542 | 626 | ||||||||||||||
| Short-Term Borrowings | 536 | 343 | 192 | 307 | 317 | 1,071 | 1,053 | ||||||||||||||
| Subordinated Notes Payable | 443 | 370 | 317 | 306 | 307 | 1,130 | 922 | ||||||||||||||
| Other Long-Term Borrowings | 6 | 8 | 9 | 12 | 14 | 23 | 51 | ||||||||||||||
| Total Interest Expense | 2,037 | 987 | 742 | 838 | 848 | 3,766 | 2,652 | ||||||||||||||
| Net Interest Income | 33,327 | 28,333 | 24,696 | 24,711 | 27,672 | 86,356 | 78,150 | ||||||||||||||
| Provision for Credit Losses | 2,099 | 1,542 | - | - | - | 3,641 | (1,553 | ) | |||||||||||||
| Net Interest Income after Provision for Credit Losses | 31,228 | 26,791 | 24,696 | 24,711 | 27,672 | 82,715 | 79,703 | ||||||||||||||
| NONINTEREST INCOME | |||||||||||||||||||||
| Deposit Fees | 5,947 | 5,447 | 5,191 | 5,300 | 5,075 | 16,585 | 13,582 | ||||||||||||||
| Bank Card Fees | 3,860 | 4,034 | 3,763 | 3,872 | 3,786 | 11,657 | 11,402 | ||||||||||||||
| Wealth Management Fees | 3,937 | 4,403 | 6,070 | 3,706 | 3,623 | 14,410 | 9,987 | ||||||||||||||
| Mortgage Banking Revenues | 7,116 | 9,065 | 8,946 | 9,800 | 12,283 | 25,127 | 42,625 | ||||||||||||||
| Other | 2,074 | 1,954 | 1,848 | 1,994 | 1,807 | 5,876 | 5,277 | ||||||||||||||
| Total Noninterest Income | 22,934 | 24,903 | 25,818 | 24,672 | 26,574 | 73,655 | 82,873 | ||||||||||||||
| NONINTEREST EXPENSE | |||||||||||||||||||||
| Compensation | 24,738 | 25,383 | 24,856 | 24,783 | 25,245 | 74,977 | 76,687 | ||||||||||||||
| Occupancy, Net | 6,153 | 6,075 | 6,093 | 5,960 | 6,032 | 18,321 | 17,972 | ||||||||||||||
| Other Real Estate, Net | (92 | ) | (29 | ) | 25 | 26 | (1,126 | ) | (96 | ) | (1,514 | ) | |||||||||
| Pension Settlement | 102 | 169 | 209 | 572 | 500 | 480 | 2,500 | ||||||||||||||
| Other | 8,909 | 8,900 | 8,050 | 8,866 | 9,051 | 25,859 | 26,656 | ||||||||||||||
| Total Noninterest Expense | 39,810 | 40,498 | 39,233 | 40,207 | 39,702 | 119,541 | 122,301 | ||||||||||||||
| OPERATING PROFIT | 14,352 | 11,196 | 11,281 | 9,176 | 14,544 | 36,829 | 40,275 | ||||||||||||||
| Income Tax Expense | 3,074 | 2,177 | 2,235 | 2,040 | 2,949 | 7,486 | 7,795 | ||||||||||||||
| Net Income | 11,278 | 9,019 | 9,046 | 7,136 | 11,595 | 29,343 | 32,480 | ||||||||||||||
| Pre-Tax Income Attributable to Noncontrolling Interest | 37 | (306 | ) | (591 | ) | (764 | ) | (1,504 | ) | (860 | ) | (5,456 | ) | ||||||||
| NET INCOME ATTRIBUTABLE TO COMMON SHAREOWNERS | $ | 11,315 | $ | 8,713 | $ | 8,455 | $ | 6,372 | $ | 10,091 | $ | 28,483 | $ | 27,024 | |||||||
| PER COMMON SHARE | |||||||||||||||||||||
| Basic Net Income | $ | 0.67 | $ | 0.51 | $ | 0.50 | $ | 0.38 | $ | 0.60 | $ | 1.68 | $ | 1.60 | |||||||
| Diluted Net Income | 0.67 | 0.51 | 0.50 | 0.38 | 0.60 | 1.68 | 1.60 | ||||||||||||||
| Cash Dividend | $ | 0.17 | $ | 0.16 | $ | 0.16 | $ | 0.16 | $ | 0.16 | $ | 0.49 | $ | 0.46 | |||||||
| AVERAGE SHARES | |||||||||||||||||||||
| Basic | 16,960 | 16,949 | 16,931 | 16,880 | 16,875 | 16,947 | 16,857 | ||||||||||||||
| Diluted | 16,996 | 16,971 | 16,946 | 16,923 | 16,909 | 16,973 | 16,886 | ||||||||||||||
| CAPITAL CITY BANK GROUP, INC. | |||||||||||||||||||||
| ALLOWANCE FOR CREDIT LOSSES ("ACL") | |||||||||||||||||||||
| AND CREDIT QUALITY | |||||||||||||||||||||
| Unaudited | |||||||||||||||||||||
| 2022 | 2021 | September 30, | |||||||||||||||||||
| (Dollars in thousands, except per share data) | Third Quarter | Second Quarter | First Quarter | Fourth Quarter | Third Quarter | 2022 | 2021 | ||||||||||||||
| ACL - HELD FOR INVESTMENT LOANS | |||||||||||||||||||||
| Balance at Beginning of Period | $ | 21,281 | $ | 20,756 | $ | 21,606 | $ | 21,500 | $ | 22,175 | $ | 21,606 | $ | 23,816 | |||||||
| Provision for Credit Losses | 1,931 | 1,670 | (79 | ) | 200 | (546 | ) | 3,522 | (3,042 | ) | |||||||||||
| Net Charge-Offs (Recoveries) | 702 | 1,145 | 771 | 94 | 129 | 2,618 | (726 | ) | |||||||||||||
| Balance at End of Period | $ | 22,510 | $ | 21,281 | $ | 20,756 | $ | 21,606 | $ | 21,500 | $ | 22,510 | $ | 21,500 | |||||||
| As a % of Loans HFI | 0.96 | % | 0.96 | % | 1.05 | % | 1.12 | % | 1.11 | % | 0.96 | % | 1.11 | % | |||||||
| As a % of Nonperforming Loans | 934.53 | % | 677.57 | % | 760.83 | % | 499.93 | % | 710.39 | % | 934.53 | % | 710.39 | % | |||||||
| ACL - UNFUNDED COMMITMENTS | |||||||||||||||||||||
| Balance at Beginning of Period | 2,853 | $ | 2,976 | $ | 2,897 | $ | 3,117 | $ | 2,587 | $ | 2,897 | $ | 1,644 | ||||||||
| Provision for Credit Losses | 159 | (123 | ) | 79 | (220 | ) | 530 | 115 | 1,473 | ||||||||||||
| Balance at End of Period(1) | 3,012 | 2,853 | 2,976 | 2,897 | 3,117 | 3,012 | 3,117 | ||||||||||||||
| ACL - DEBT SECURITIES | |||||||||||||||||||||
| Provision for Credit Losses | $ | 9 | $ | (5 | ) | $ | - | $ | 20 | $ | 16 | $ | 4 | $ | 16 | ||||||
| CHARGE-OFFS | |||||||||||||||||||||
| Commercial, Financial and Agricultural | $ | 2 | $ | 1,104 | $ | 73 | $ | 101 | $ | 37 | $ | 1,179 | $ | 138 | |||||||
| Real Estate - Construction | - | - | - | - | - | - | - | ||||||||||||||
| Real Estate - Commercial | 1 | - | 266 | - | 405 | 267 | 405 | ||||||||||||||
| Real Estate - Residential | - | - | - | 20 | 17 | - | 88 | ||||||||||||||
| Real Estate - Home Equity | - | - | 33 | 9 | 15 | 33 | 94 | ||||||||||||||
| Consumer | 770 | 533 | 622 | 254 | 221 | 1,925 | 1,015 | ||||||||||||||
| Overdrafts | 989 | 660 | 780 | 678 | 1,093 | 2,429 | 2,025 | ||||||||||||||
| Total Charge-Offs | $ | 1,762 | $ | 2,297 | $ | 1,774 | $ | 1,062 | $ | 1,788 | $ | 5,833 | $ | 3,765 | |||||||
| RECOVERIES | |||||||||||||||||||||
| Commercial, Financial and Agricultural | $ | 58 | $ | 59 | $ | 165 | $ | 148 | $ | 66 | $ | 282 | $ | 305 | |||||||
| Real Estate - Construction | 2 | - | 8 | - | 10 | 10 | 10 | ||||||||||||||
| Real Estate - Commercial | 8 | 56 | 29 | 25 | 169 | 93 | 840 | ||||||||||||||
| Real Estate - Residential | 44 | 115 | 27 | 33 | 401 | 186 | 720 | ||||||||||||||
| Real Estate - Home Equity | 22 | 67 | 58 | 173 | 46 | 147 | 240 | ||||||||||||||
| Consumer | 260 | 453 | 183 | 214 | 334 | 896 | 977 | ||||||||||||||
| Overdrafts | 666 | 402 | 533 | 375 | 633 | 1,601 | 1,399 | ||||||||||||||
| Total Recoveries | $ | 1,060 | $ | 1,152 | $ | 1,003 | $ | 968 | $ | 1,659 | $ | 3,215 | $ | 4,491 | |||||||
| NET CHARGE-OFFS (RECOVERIES) | $ | 702 | $ | 1,145 | $ | 771 | $ | 94 | $ | 129 | $ | 2,618 | $ | (726 | ) | ||||||
| Net Charge-Offs as a % of Average Loans HFI(2) | 0.12 | % | 0.22 | % | 0.16 | % | 0.02 | % | 0.03 | % | 0.17 | % | (0.05 | )% | |||||||
| CREDIT QUALITY | |||||||||||||||||||||
| Nonaccruing Loans | $ | 2,409 | $ | 3,141 | $ | 2,728 | $ | 4,322 | $ | 3,026 | |||||||||||
| Other Real Estate Owned | 13 | 90 | 17 | 17 | 192 | ||||||||||||||||
| Total Nonperforming Assets ("NPAs") | $ | 2,422 | $ | 3,231 | $ | 2,745 | $ | 4,339 | $ | 3,218 | |||||||||||
| Past Due Loans 30-89 Days | $ | 6,263 | $ | 3,554 | $ | 3,120 | $ | 3,600 | $ | 3,360 | |||||||||||
| Past Due Loans 90 Days or More | - | - | - | - | - | ||||||||||||||||
| Classified Loans | 20,988 | 19,620 | 22,348 | 17,912 | 16,310 | ||||||||||||||||
| Performing Troubled Debt Restructurings | $ | 6,261 | $ | 6,728 | $ | 7,304 | $ | 7,643 | $ | 7,919 | |||||||||||
| Nonperforming Loans as a % of Loans HFI | 0.10 | % | 0.14 | % | 0.14 | % | 0.22 | % | 0.16 | % | |||||||||||
| NPAs as a % of Loans HFI and Other Real Estate | 0.10 | % | 0.15 | % | 0.14 | % | 0.22 | % | 0.17 | % | |||||||||||
| NPAs as a % of Total Assets | 0.06 | % | 0.07 | % | 0.06 | % | 0.10 | % | 0.08 | % | |||||||||||
| (1) Recorded in other liabilities | |||||||||||||||||||||
| (2) Annualized | |||||||||||||||||||||
| CAPITAL CITY BANK GROUP, INC. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| AVERAGE BALANCE AND INTEREST RATES | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Unaudited | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Third Quarter 2022 | Second Quarter 2022 | First Quarter 2022 | Fourth Quarter 2021 | Third Quarter 2021 | Sep 2022 YTD | Sep 2021 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 Held for Sale | $ | 55,164 | $ | 486 | 4.82 | % | $ | 52,860 | $ | 711 | 4.44 | % | $ | 43,004 | $ | 397 | 3.19 | % | $ | 62,809 | 522 | 3.29 | % | $ | 67,753 | $ | 497 | 2.91 | % | $ | 50,387 | $ | 1,594 | 4.23 | % | $ | 83,558 | $ | 2,033 | 3.24 | % | ||||||||||||||||
| Loans Held for Investment(1) | 2,264,075 | 27,354 | 4.76 | 2,084,679 | 23,433 | 4.53 | 1,963,578 | 21,811 | 4.52 | 1,948,324 | 22,296 | 4.54 | 1,974,132 | 25,458 | 5.12 | 2,105,211 | 72,598 | 4.61 | 2,018,168 | 72,036 | 4.76 | ||||||||||||||||||||||||||||||||||||
| Investment Securities | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Taxable Investment Securities | 1,117,789 | 4,359 | 1.55 | 1,142,269 | 3,834 | 1.34 | 1,056,736 | 2,889 | 1.10 | 987,700 | 2,493 | 1.00 | 904,962 | 2,333 | 1.03 | 1,105,822 | 11,082 | 1.34 | 708,606 | 6,232 | 1.17 | ||||||||||||||||||||||||||||||||||||
| Tax-Exempt Investment Securities(1) | 2,939 | 17 | 2.30 | 2,488 | 10 | 1.73 | 2,409 | 10 | 1.60 | 3,380 | 17 | 2.07 | 4,332 | 25 | 2.31 | 2,614 | 37 | 1.90 | 3,904 | 73 | 2.49 | ||||||||||||||||||||||||||||||||||||
| Total Investment Securities | 1,120,728 | 4,376 | 1.55 | 1,144,757 | 3,844 | 1.34 | 1,059,145 | 2,899 | 1.10 | 991,080 | 2,510 | 1.01 | 909,294 | 2,358 | 1.03 | 1,108,436 | 11,119 | 1.34 | 712,510 | 6,305 | 1.18 | ||||||||||||||||||||||||||||||||||||
| Federal Funds Sold and Interest Bearing Deposits | 569,984 | 3,231 | 2.25 | 691,925 | 1,408 | 0.82 | 873,097 | 409 | 0.19 | 789,100 | 300 | 0.15 | 741,944 | 285 | 0.15 | 710,559 | 5,048 | 0.95 | 791,466 | 698 | 0.12 | ||||||||||||||||||||||||||||||||||||
| Total Earning Assets | 4,009,951 | $ | 35,447 | 3.51 | % | 3,974,221 | $ | 29,396 | 2.97 | % | 3,938,824 | $ | 25,516 | 2.63 | % | 3,791,313 | $ | 25,628 | 2.68 | % | 3,693,123 | $ | 28,598 | 3.07 | % | 3,974,593 | $ | 90,359 | 3.04 | % | 3,605,702 | $ | 81,072 | 3.01 | % | ||||||||||||||||||||||
| Cash and Due From Banks | 79,527 | 79,730 | 74,253 | 73,752 | 72,773 | 77,856 | 71,956 | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Allowance for Credit Losses | (21,509 | ) | (20,984 | ) | (21,655 | ) | (22,127 | ) | (22,817 | ) | (21,382 | ) | (23,241 | ) | |||||||||||||||||||||||||||||||||||||||||||
| Other Assets | 289,709 | 288,421 | 275,353 | 284,999 | 283,534 | 284,546 | 281,162 | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Total Assets | $ | 4,357,678 | $ | 4,321,388 | $ | 4,266,775 | $ | 4,127,937 | $ | 4,026,613 | $ | 4,315,613 | $ | 3,935,579 | |||||||||||||||||||||||||||||||||||||||||||
| LIABILITIES: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Interest Bearing Deposits | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| NOW Accounts | $ | 1,016,475 | $ | 868 | 0.34 | % | $ | 1,033,190 | $ | 120 | 0.05 | % | $ | 1,079,906 | $ | 86 | 0.03 | % | $ | 963,778 | $ | 72 | 0.03 | % | $ | 945,788 | $ | 72 | 0.03 | % | $ | 1,042,958 | $ | 1,074 | 0.14 | % | $ | 965,839 | $ | 222 | 0.03 | % | |||||||||||||||
| Money Market Accounts | 288,758 | 71 | 0.10 | 286,210 | 36 | 0.05 | 285,406 | 33 | 0.05 | 289,335 | 34 | 0.05 | 282,860 | 34 | 0.05 | 286,804 | 140 | 0.07 | 274,990 | 100 | 0.05 | ||||||||||||||||||||||||||||||||||||
| Savings Accounts | 643,640 | 80 | 0.05 | 628,472 | 77 | 0.05 | 599,359 | 72 | 0.05 | 573,563 | 71 | 0.05 | 551,383 | 68 | 0.05 | 623,986 | 229 | 0.05 | 524,710 | 192 | 0.05 | ||||||||||||||||||||||||||||||||||||
| Time Deposits | 94,073 | 33 | 0.14 | 95,132 | 33 | 0.14 | 97,054 | 33 | 0.14 | 101,037 | 36 | 0.14 | 102,765 | 36 | 0.14 | 95,408 | 99 | 0.14 | 102,619 | 112 | 0.15 | ||||||||||||||||||||||||||||||||||||
| Total Interest Bearing Deposits | 2,042,946 | 1,052 | 0.20 | % | 2,043,004 | 266 | 0.05 | % | 2,061,725 | 224 | 0.04 | % | 1,927,713 | 213 | 0.04 | % | 1,882,796 | 210 | 0.04 | % | 2,049,156 | 1,542 | 0.10 | % | 1,868,158 | 626 | 0.04 | % | |||||||||||||||||||||||||||||
| Short-Term Borrowings | 46,679 | 536 | 4.56 | % | 31,782 | 343 | 4.33 | % | 32,353 | 192 | 2.40 | % | 46,355 | 307 | 2.63 | % | 49,773 | 317 | 2.53 | % | 36,991 | 1,071 | 3.87 | % | 55,923 | 1,053 | 2.52 | % | |||||||||||||||||||||||||||||
| Subordinated Notes Payable | 52,887 | 443 | 3.28 | 52,887 | 370 | 2.76 | 52,887 | 317 | 2.40 | 52,887 | 306 | 2.26 | 52,887 | 307 | 2.27 | 52,887 | 1,130 | 2.82 | 52,887 | 922 | 2.30 | ||||||||||||||||||||||||||||||||||||
| Other Long-Term Borrowings | 580 | 6 | 4.74 | 722 | 8 | 4.54 | 833 | 9 | 4.49 | 1,414 | 12 | 3.50 | 1,652 | 14 | 3.37 | 710 | 23 | 4.58 | 2,046 | 51 | 3.29 | ||||||||||||||||||||||||||||||||||||
| Total Interest Bearing Liabilities | 2,143,092 | $ | 2,037 | 0.38 | % | 2,128,395 | $ | 987 | 0.19 | % | 2,147,798 | $ | 742 | 0.14 | % | 2,028,369 | $ | 838 | 0.16 | % | 1,987,108 | $ | 848 | 0.17 | % | 2,139,744 | $ | 3,766 | 0.24 | % | 1,979,014 | $ | 2,652 | 0.18 | % | ||||||||||||||||||||||
| Noninterest Bearing Deposits | 1,726,918 | 1,722,325 | 1,652,337 | 1,621,432 | 1,564,892 | 1,700,800 | 1,490,787 | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Other Liabilities | 98,501 | 87,207 | 72,166 | 114,657 | 112,707 | 86,055 | 110,526 | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Total Liabilities | 3,968,511 | 3,937,927 | 3,872,301 | 3,764,458 | 3,664,707 | 3,926,599 | 3,580,327 | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Temporary Equity | 9,862 | 10,096 | 10,518 | 13,339 | 20,446 | 10,156 | 22,920 | ||||||||||||||||||||||||||||||||||||||||||||||||||
| SHAREOWNERS' EQUITY: | 379,305 | 373,365 | 383,956 | 350,140 | 341,460 | 378,858 | 332,332 | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Total Liabilities, Temporary Equity and Shareowners' Equity | $ | 4,357,678 | $ | 4,321,388 | $ | 4,266,775 | $ | 4,127,937 | $ | 4,026,613 | $ | 4,315,613 | $ | 3,935,579 | |||||||||||||||||||||||||||||||||||||||||||
| Interest Rate Spread | $ | 33,410 | 3.13 | % | $ | 28,409 | 2.78 | % | $ | 24,774 | 2.49 | % | $ | 24,790 | 2.52 | % | $ | 27,750 | 2.91 | % | $ | 86,593 | 2.80 | % | $ | 78,420 | 2.83 | % | |||||||||||||||||||||||||||||
| Interest Income and Rate Earned(1) | 35,447 | 3.51 | 29,396 | 2.97 | 25,516 | 2.63 | 25,628 | 2.68 | 28,598 | 3.07 | 90,359 | 3.04 | 81,072 | 3.01 | |||||||||||||||||||||||||||||||||||||||||||
| Interest Expense and Rate Paid(2) | 2,037 | 0.20 | 987 | 0.10 | 742 | 0.08 | 838 | 0.09 | 848 | 0.09 | 3,766 | 0.13 | 2,652 | 0.10 | |||||||||||||||||||||||||||||||||||||||||||
| Net Interest Margin | $ | 33,410 | 3.31 | % | $ | 28,409 | 2.87 | % | $ | 24,774 | 2.55 | % | $ | 24,790 | 2.60 | % | $ | 27,750 | 2.98 | % | $ | 86,593 | 2.91 | % | $ | 78,420 | 2.91 | % | |||||||||||||||||||||||||||||
| (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
