Capital City Bank Group Inc.
07/27/2021 | Press release | Distributed by Public on 07/27/2021 07:41
Reports Second Quarter 2021 Results (Form 8-K)
Reports Second Quarter 2021 Results
TALLAHASSEE,Fla. (July 27, 2021) - Capital City Bank Group,Inc. (NASDAQ: CCBG) today reported net income of $7.4
million, or $0.44 per diluted share, for the second quarterof 2021 compared to net income of $9.5 million, or $0.56per diluted share,
for the first quarter of 2021, and $9.1 million, or $0.55per diluted share,for the second quarter of 2020.Net income for the second
quarter of 2021 included a partial pension settlement chargeof $2.0 million (pre-tax),or $0.10 per diluted share (after tax).
For the first six months of 2021, net income totaled$16.9 million, or $1.00 per diluted share, compared to net incomeof $13.4
million, or $0.80 per diluted share, for the same periodof 2020.
Our return on average assets ('ROA') was 0.75% and ourreturn on average equity ('ROE') was 9.05% for the secondquarter of
2021.These metrics were 1.01% and 11.81%for the first quarter of 2021, respectively,and 1.10% and 11.03% for the second
quarter of 2020, respectively.For the first six months of 2021, our ROA was 0.88% andour ROE was 10.42% compared to 0.85%
and 8.12%, respectively,for the same period of 2020.
QUARTER HIGHLIGHTS
●
Net interest income grew6% sequentiallydriven by strong loan growthand higher SBA PPP fees
●
Period-end loan balances (net of SBA PPP balances) grewby $74 million, or 4.0% sequentially
-
Remaining SBA PPP balances and deferredfees totaled $80 million and $3.5 million, respectively,at period-end
●
Strong creditquality metrics and a net loan loss recovery drovea negative credit loss provisionof $0.6 million
●
Average deposit balancesgrew $148 million, or 4.6% sequentially andreflected additional stimulus inflows as well as strong
core deposit growth
●
Noninterest expense increased$1.6 million and included a partial pension settlement chargeof $2.0 million - controllable
expenses at CCB continued to be well managed
●
Capital City Home Loans ('CCHL') contributed $0.05per share
'Challenges remain, but Capital City produced solid resultsfor both the second quarter and first half of 2021,' saidWilliam G.
Smith, Jr., Chairman,President and CEO of Capital City Bank Group.'Excluding PPP loans, our loan portfolio grew $74.3 million,
or 3.8%, for the quarter with commercial mortgages andauto finance contributing a majority of the net growth.Continued
improvement in the economy and favorable credit qualityresulted in a negative credit loss provision of $570,000.Quarter over
quarter, our fee based businesses performedwell.Wealth managementrevenues increased 6.0%,and I am pleased to welcome
Capital City Strategic Wealth('CCSW' - formerly Strategic WealthGroup) to our team.CCSW offers financial planning services
specializing in life insurance solutions and we are excitedabout the prospects it brings to our wealth management business.Debit
and credit card fees were up 10% as consumer spendinggains momentum.Although mortgage revenues were down for the quarter,
CCHL continues to perform well above its historical norms.After adjusting for the pension settlement expense of $2.0million,our
total expenses were down quarter over quarter and continueto be well managed.Our management team focuses on those aspects of
our business we can do something about and strives toimplement strategies that are sustainable and produce long-termvalue for our
shareowners.I am optimistic about our future and appreciate your support.'
COVID-19 Update
●
We continueto closely monitor conditions including the rising case countin some of our communities.
●
We have establisheda tentative return to work date for all associates, but wewill adjust as necessary depending on changing
conditions.
●
All of our banking offices have returned tonormal banking hours and lobby services.
●
We are adheringto national guidelines and local safety ordinances to protectboth clients and associates.
●
We continueto support clients with the Small Business Administration PaymentProtection Program ('SBA PPP') by actively
assisting with the Round 1 and 2 forgiveness process.
2
Discussion of OperatingResults
Net Interest Income/Net InterestMargin
Tax-equivalentnet interest income for the second quarter of 2021 totaled $26.1million compared to $24.6 million for the first
quarter of 2021 and $25.6 million for the second quarterof 2020.Compared to the first quarter of 2021, the increase reflected higher
SBA PPP loan fees of $0.7 million, higher loan interest of$0.5 million driven by loan growth, and higher investmentsecurities
income of $0.2 million which reflected deploymentof excess overnight funds into the investment portfolio.Compared to the second
quarter of 2020, the increase was driven by higher SBA PPPloan fees of $1.3 million partially offset bylower interest earned on
investment securities and variable/adjustable rate loans.For the first six months of 2021, tax-equivalent net interestincome totaled
$50.7 million compared to $51.4 million for the same periodof 2020.The decrease generally reflected lower rates earned on
investment securities and variable/adjustable rate loanspartially offset by higher SBA PPP loan fees and lowerinterest expense.
Our net interest margin for the second quarterof 2021 was 2.89%, an increase of three basis points overthe first quarter of 2021 and
a decrease of 52 basis points from the second quarterof 2020.Compared to the first quarter of 2021, the increase was drivenby
higher SBA PPP loan fees.Compared to the second quarter of 2020, the decrease was primarilyattributable to downward re-pricing
of earning assets and significant growth in overnight funds (drivenby deposit inflows) which negatively impacts our margin
percentage.For the first six months of 2021, the net interest margindecreased 72 basis points to 2.87% generally reflective of
downward re-pricing of our earning assets (variable/adjustable rateloans and securities portfolio) partially offset by alower cost of
funds and higher SBA PPP loan fees.Our net interest margin for the second quarter of2021, excluding the impact of overnight
funds in excess of $200 million, was 3.46%.
Provision for Credit Loss
We recordeda negative provision for credit losses of $0.6 million for the secondquarter of 2021 compared to a negative provision
of $1.0 million for the first quarter of 2021 and provisionexpense of $2.0 million for the second quarter of 2020.For the first six
months of 2021, we recorded a negative provision of$1.6 million compared to provision expense of $7.0 millionfor the same
period of 2020.The negative provision for the first half of 2021 generallyreflected improving economic conditions and strong net
loan recoveries totaling $0.9 million.We discuss the allowancefor credit losses further below.
Noninterest Income and NoninterestExpense
Noninterest income for the second quarter of 2021 totaled$26.5 million compared to $29.8 million for the first quarter of 2021and
$30.2 million for the second quarter of 2020.The aforementioned declines were primarily due tolower mortgage banking revenues
at CCHL, partially offset by improvements inwealth management and bank card fees.The decline in mortgage banking revenues
reflected lower production volume (primarily re-financeactivity) and a lower gain on sale margin.For the first six months of 2021,
noninterest income totaled $56.3 million compared to$45.7 million for the same period of 2020 with the increasedriven by the
addition of CCHL mortgage banking revenues late inthe first quarter of 2020,and higher bank card and wealth management fees
which grew $1.4 million and $1.2 million, respectively.Additional detail on CCHL'soperations and key performance metrics is
provided on page 11.
Noninterest expense for the second quarter of 2021 totaled$42.1 million compared to $40.5 million for the first quarterof 2021 and
$37.3 million for the second quarter of 2020.For the first six months of 2021, noninterest expense totaled$82.6 million compared
to $68.3 million for the same period of 2020.The $1.6 million increase over the first quarter of 2021reflected a $2.0 million partial
pension settlement charge that was partially offsetby lower commission expense at CCHL and lower legal fees andother real estate
owned ('OREO') expense at CCB.The partial pension settlement chargewas attributable to a higher level of lump sum pay-outs, a
trend that we expect will continue for the remainder ofthe year.Compared to the prior year periods, the increase was primarily
attributable to the partial pension settlement chargeof $2.0 million, lower realized loan cost (credit offsetto salary expense), higher
pension plan expense (driven by a lower discount ratefor plan liabilities), and performance based compensation.Additionally, the
increase for the first half of 2021 reflects the inclusionof CCHL expenses for a full six month period versus onlyfour months in
2020.
Income Taxes
We realized incometax expense of $2.1 million (effective rate of 19%) for the second quarter of 2021 compared to $2.8 million
(effective rate of 19%) for the first quarterof 2021 and $2.9 million (effective rate of 18%) forthe second quarter of 2020.For the
first six months of 2021, we realized income taxexpense of $4.8million (effective rate of 19%) compared to $4.2 million (effective
rate of 20%) for the same period of 2020.Absent discrete items, we expect our annual effective taxrate to approximate 18%-19%.
3
Discussion of Financial Condition
Earning Assets
Average earningassets totaled $3.624 billion for the second quarter of 2021, anincrease of $126.0 million, or 3.6%, over the first
quarter of 2021, and an increase of $286.5 million,or 8.6%, over the fourth quarter of 2020.The increase over both prior periods
was primarily driven by higher deposit balances, which fundedgrowth in both overnight funds sold and the investmentportfolio.
Deposit balances increased as a result of strong core depositgrowth, in addition to funding retained at the bank fromSBA PPP
loans, and various other stimulus programs.
We maintainedan average net overnight funds (deposits with banks plus FED fundssold less FED funds purchased) sold position of
$818.6 million in the second quarter of 2021 compared toan average net overnight funds sold position of $814.6 millionin the first
quarter of 2021 and $705.1 million in the fourth quarterof 2020.The increase compared to both prior periods was driven bystrong
core deposit growth, in addition to pandemic related stimulusprograms (see below -
Funding
).
Average loansheld for investment (HFI) decreased $7.6 million, or 0.4%, fromthe first quarter of 2021 and increased $43.3 million,
or 2.2%, over the fourth quarter of 2020.Excluding SBA PPP loans, average core loans grew $54.4million and $90.4 million over
both respective periods and period end loans grew $74.3million and $97.7 million over both respective periods.Growth in period
end loans was driven primarily in the commercialmortgage, indirect, and construction categories.At June 30, 2021, SBA PPP loan
balances totaled $79.9 million and remaining deferred SBA PPP netloan fees totaled $3.5 million.SBA PPP loan forgiveness
applications are expected to remain strong for the remainderof 2021.
Allowance for Credit Losses
At June 30, 2021, the allowance for credit losses forHFI loans totaled $22.2 million compared to $22.0 millionat March 31, 2021
and $23.8 million at December 31, 2020.Activity within the allowance is provided on Page 9.At June 30, 2021, the allowance
represented 1.10%of HFI loans and provided coverage of 434%of nonperforming loans compared to 1.07%and 411%,
respectively, at March31, 2021, and 1.19% and 406%, respectively,at December 31, 2020.At June 30, 2021, excluding SBA PPP
loans (100% government guaranteed),the allowance represented 1.15% of HFI loans compared to1.30% at December 31, 2020.
Credit Quality
Nonperforming assets (nonaccrual loans and OREO) totaled$6.3 million at June 30, 2021 compared to $5.5 million atMarch 31,
2021 and $6.7 million at December 31, 2020.Nonaccrual loans totaled $5.1 million at June 30, 2021, a$0.3 million decrease from
March 31, 2021 and a $0.8 million decrease fromDecember 31, 2020.The balance of OREO totaled $1.2 million at June 30, 2021,
a $1.0 million increase over March 31, 2021 and $0.4million increase over December 31, 2020.
Funding (Deposits/Debt)
Average totaldeposits were $3.387 billion for the second quarter of 2021, anincrease of $147.8 million, or 4.6%, over the first
quarter of 2021 and $321.2 million, or 10.5%, overthe fourth quarter of 2020.The strongest growth over both comparable periods
occurred in our noninterest bearing deposits and savingsaccount balances. Averagepublic deposits in the second quarter 2021
increased compared to the fourth quarter 2020, but declinedcompared to the first quarter 2021 due to the seasonality ofthese
deposits. Over the past 12 months, multiple governmentstimulus programs have been implemented, including those underthe
CARES Act and the American Rescue Plan Act, which areresponsible for a large part of the growth in averagedeposits. Given
these increases, the potential exists for our deposit levels tobe volatile for the remainder of2021 due to the uncertain timing of the
outflows of the stimulus related balances and the economicrecovery.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 safelydeploy a portion of this
liquidity.
Average short-term borrowings decreased $15.9 million over the first quarter of2021 and declined $44.1 million over the fourth
quarter of 2020,both of which reflected a seasonal fluctuation in warehouse lineborrowing needs to support CCHL'sloans held for
sale.
4
Capital
Shareowners' equity was $335.9 million at June 30,2021 compared to $324.4 million at March 31, 2021 and$320.8 million at
December 31, 2020.For the first six months of 2021, shareowners' equity was positivelyimpacted by net income of $16.9 million,
a $0.9 million increase in fair value of the interest rateswap related to subordinated debt,net adjustments totaling $1.0 million
related to transactions under our stock compensation plans,stock compensation accretion of $0.4 million, and reclassificationof
$1.2 million from temporary equity to decrease the redemptionvalue of the non-controlling interest in CCHL.In addition, $1.6
million was reclassified from accumulated other comprehensiveloss to pension expense in conjunction with the partialpension
settlement charge reflected in earnings, therefore,the charge had no net effect on equity.Shareowners' equity was reduced by
common stock dividendsof $5.1 million ($0.30 per share) and a $1.8 million decrease inthe unrealized gain on investment
securities.
At June 30, 2021, our total risk-based capital ratio was16.48% compared to 17.20% at March 31, 2021 and 17.30% atDecember
31, 2020.Our common equity tier 1 capital ratio was 13.14%, 13.63%, and 13.71%,respectively, on these dates.Our leverage ratio
was 8.84%, 8.97%, and 9.33%, respectively,on these dates.All of our regulatory capital ratios exceeded thethreshold to be
designated as 'well-capitalized' under the Basel IIIcapital standards.Further, our tangible common equity ratiowas 6.19% at June
30, 2021 compared to 6.13% and 6.25% at March31, 2021 and December 31, 2020,respectively.
About Capital City Bank Group, Inc.
Capital City Bank Group, Inc. (NASDAQ: CCBG) is oneof the largest publicly traded financial holding companiesheadquartered
in Florida and has approximately $4.0 billion in assets.We providea full range of banking services, including traditional deposit
and credit services, mortgage banking, asset management,trust, merchant services, bankcards, securities brokerage services andlife
insurance.Our bank subsidiary, Capital CityBank ('CCB'),was founded in 1895 and now has 57 banking officesand 86
ATMs/ITMsin 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 oncurrent plans and expectations that are subject to uncertainties and
risks, which could cause our future results to differmaterially.The following factors, among others, could cause our actual results to
differ: the magnitude and duration of the COVID-19pandemic and its impact on the global economy and financialmarket 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 financialstatement estimates and assumptions; legislative or regulatorychanges;
fluctuations in inflation, interest rates, or monetary policies;the effects of security breaches and computerviruses that may affect our
computer systems or fraud related to debit card products; changesin consumer spending and savings habits; our growth and
profitability; the strength of the U.S. economy and thelocal economies where we conduct operations; the effectsof a non-diversified
loan portfolio, including the risks of geographic andindustry concentrations; natural disasters, widespread healthemergencies,
military conflict, terrorism or other geopolitical events; changesin 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; negativepublicity and the
impact on our reputation; technological changes, especiallychanges that allow out of market competitors to competein our
markets; changes in accounting; and our ability to managethe risks involved in the foregoing.Additional factors can be found in our
Annual Report on Form 10-K for the fiscal year endedDecember 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 ofthe date of the
Press Release, and we assume no obligation to updateforward-looking statements or the reasons why actual resultscould differ.
5
USE OF NON-GAAP FINANCIAL MEASURES
We present atangible common equity ratio and a tangible book value perdiluted share that removes the effect of goodwill and other
intangibles resulting from merger and acquisitionactivity.We believe thesemeasures are useful to investors because it allows
investors to more easily compare our capital adequacyto other companies in the industry.
The GAAP to non-GAAP reconciliations are provided below.
(Dollars in Thousands, except per share data)
Jun 30, 2021
Mar 31, 2021
Dec 31, 2020
Sep 30, 2020
Jun 30, 2020
Shareowners' Equity (GAAP)
$
335,880
$
324,426
$
320,837
$
339,425
$
335,057
Less: Goodwill and Other Intangibles (GAAP)
93,333
89,095
89,095
89,095
89,095
Tangible Shareowners' Equity (non-GAAP)
A
242,547
235,331
231,742
250,330
245,962
Total Assets (GAAP)
4,011,459
3,929,884
3,798,071
3,587,041
3,499,524
Less: Goodwill and Other Intangibles (GAAP)
93,333
89,095
89,095
89,095
89,095
Tangible Assets (non-GAAP)
B
$
3,918,126
$
3,840,789
$
3,708,976
$
3,497,946
$
3,410,429
Tangible Common Equity Ratio (non-GAAP)
A/B
6.19%
6.13%
6.25%
7.16%
7.21%
Actual Diluted Shares Outstanding (GAAP)
C
16,901,375
16,875,719
16,844,997
16,800,563
16,821,743
Tangible Book Valueper Diluted Share (non-GAAP)
A/C
$
14.35
$
13.94
$
13.76
$
14.90
$
14.62
6
CAPITAL CITY BANKGROUP,INC.
EARNINGS HIGHLIGHTS
Unaudited
Three Months Ended
Six Months Ended
(Dollars in thousands, except per share data)
Jun 30, 2021
Mar 31, 2021
Jun 30, 2020
Jun 30, 2021
Jun 30, 2020
EARNINGS
Net Income Attributable to Common Shareowners
$
7,427
$
9,506
$
9,146
$
16,933
$
13,433
Diluted Net Income Per Share
$
0.44
$
0.56
$
0.55
$
1.00
$
0.80
PERFORMANCE
Return on Average Assets
0.75
%
1.01
%
1.10
%
0.88
%
0.85
%
Return on Average Equity
9.05
11.81
11.03
10.42
8.12
Net Interest Margin
2.89
2.85
3.41
2.87
3.59
Noninterest Income as % of Operating Revenue
50.47
54.90
54.26
52.73
47.13
Efficiency Ratio
80.18
%
74.36
%
66.90
%
77.22
%
70.30
%
CAPITAL ADEQUACY
Tier 1 Capital
15.44
%
16.08
%
16.59
%
15.44
%
16.59
%
Total Capital
16.48
17.20
17.60
16.48
17.60
Leverage
8.84
8.97
10.12
8.84
10.12
Common Equity Tier 1
13.14
13.63
14.01
13.14
14.01
Tangible Common Equity
(1)
6.19
6.13
7.21
6.19
7.21
Equity to Assets
8.37
%
8.26
%
9.57
%
8.37
%
9.57
%
ASSET QUALITY
Allowance as % of Non-Performing Loans
433.93
%
410.78
%
322.37
%
433.93
%
322.37
%
Allowance as a % of Loans HFI
1.10
1.07
1.11
1.10
1.11
Net Charge-Offs as % of Average LoansHFI
(0.07)
(0.10)
0.05
(0.08)
0.14
Nonperforming Assets as % of Loans HFI and OREO
0.31
0.27
0.40
0.31
0.40
Nonperforming Assets as % of Total Assets
0.16
%
0.14
%
0.23
%
0.16
%
0.23
%
STOCK PERFORMANCE
High
$
27.39
$
28.98
$
23.99
$
28.98
$
30.62
Low
24.55
21.42
16.16
21.42
15.61
Close
$
25.79
$
26.02
$
20.95
$
25.79
$
20.95
Average Daily TradingVolume
28,958
30,303
49,569
29,620
45,089
(1)
Tangible common equity ratio is a non-GAAP financial measure.For additional information, including a reconciliation to GAAP, refer to
Page 5.
7
CAPITAL CITY BANK GROUP, INC.
CONSOLIDATED STATEMENTOF FINANCIAL CONDITION
Unaudited
2021
2020
(Dollars in thousands)
Second Quarter
First Quarter
Fourth Quarter
Third Quarter
Second Quarter
ASSETS
Cash and Due From Banks
$
78,894
$
73,973
$
67,919
$
76,509
$
75,155
Funds Sold and Interest Bearing Deposits
766,920
851,910
860,630
626,104
513,273
Total Cash and Cash Equivalents
845,814
925,883
928,549
702,613
588,428
Investment Securities Available for Sale
480,890
406,245
324,870
328,253
341,180
Investment Securities Held to Maturity
325,559
199,109
169,939
202,593
232,178
Total Investment Securities
806,449
605,354
494,809
530,846
573,358
Loans Held for Sale ('HFS')
80,821
82,081
114,039
116,561
76,610
Loans Held for Investment ('HFI'):
Commercial, Financial, & Agricultural
292,953
413,819
393,930
402,997
421,270
Real Estate - Construction
149,884
138,104
135,831
125,804
117,794
Real Estate - Commercial
707,599
669,158
648,393
656,064
662,434
Real Estate - Residential
362,018
358,849
342,664
335,713
353,831
Real Estate - Home Equity
190,078
202,099
205,479
197,363
194,479
Consumer
298,464
267,666
269,520
268,393
266,417
Other Loans
6,439
7,082
9,879
10,488
4,883
Overdrafts
1,227
950
730
1,339
1,069
Total Loans Held for Investment
2,008,662
2,057,727
2,006,426
1,998,161
2,022,177
Allowance for Credit Losses
(22,175)
(22,026)
(23,816)
(23,137)
(22,457)
Loans Held for Investment, Net
1,986,487
2,035,701
1,982,610
1,975,024
1,999,720
Premises and Equipment, Net
85,745
86,370
86,791
87,192
87,972
Goodwill and Other Intangibles
93,333
89,095
89,095
89,095
89,095
Other Real Estate Owned
1,192
110
808
1,227
1,059
Other Assets
111,618
105,290
101,370
84,483
83,282
Total Other Assets
291,888
280,865
278,064
261,997
261,408
Total Assets
$
4,011,459
$
3,929,884
$
3,798,071
$
3,587,041
$
3,499,524
LIABILITIES
Deposits:
Noninterest Bearing Deposits
$
1,552,864
$
1,473,891
$
1,328,809
$
1,378,314
$
1,377,033
NOW Accounts
970,705
993,571
1,046,408
827,506
808,244
Money Market Accounts
280,805
269,041
266,649
247,823
240,754
Regular Savings Accounts
539,477
518,373
474,100
451,944
423,924
Certificates of Deposit
103,070
103,232
101,594
103,859
105,041
Total Deposits
3,446,921
3,358,108
3,217,560
3,009,446
2,954,996
Short-Term Borrowings
47,200
55,687
79,654
90,936
63,958
Subordinated Notes Payable
52,887
52,887
52,887
52,887
52,887
Other Long-Term Borrowings
1,720
1,829
3,057
5,268
5,583
Other Liabilities
105,534
109,487
102,076
71,880
75,702
Total Liabilities
3,654,262
3,577,998
3,455,234
3,230,417
3,153,126
Temporary Equity
21,317
27,460
22,000
17,199
11,341
SHAREOWNERS' EQUITY
Common Stock
169
169
168
168
168
Additional Paid-In Capital
33,560
32,804
32,283
31,425
31,575
Retained Earnings
345,574
335,324
332,528
333,545
328,570
Accumulated Other Comprehensive Loss, Net of Tax
(43,423)
(43,871)
(44,142)
(25,713)
(25,256)
Total Shareowners' Equity
335,880
324,426
320,837
339,425
335,057
Total Liabilities, Temporary Equity and Shareowners' Equity
$
4,011,459
$
3,929,884
$
3,798,071
$
3,587,041
$
3,499,524
OTHER BALANCE SHEET DATA
Earning Assets
$
3,662,852
$
3,597,071
$
3,475,904
$
3,271,672
$
3,185,418
Interest Bearing Liabilities
1,995,864
1,994,620
2,024,349
1,780,223
1,700,391
Book Value Per Diluted Share
$
19.87
$
19.22
$
19.05
$
20.20
$
19.92
Tangible Book ValuePer Diluted Share
(1)
14.35
13.94
13.76
14.90
14.62
Actual Basic Shares Outstanding
16,874
16,852
16,791
16,761
16,780
Actual Diluted Shares Outstanding
16,901
16,876
16,845
16,801
16,822
(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.
8
CAPITAL CITY BANKGROUP,INC.
CONSOLIDATED STATEMENTOF OPERATIONS
Unaudited
2021
2020
June 30,
(Dollars in thousands, except per share data)
Second
Quarter
First
Quarter
Fourth
Quarter
Third
Quarter
Second
Quarter
2021
2020
INTEREST INCOME
Interest and Fees on Loans
$
24,582
$
23,350
$
23,878
$
23,594
$
23,687
$
47,932
$
47,280
Investment Securities
2,054
1,883
2,096
2,426
2,737
3,937
5,752
Funds Sold
200
213
180
146
88
413
845
Total Interest Income
26,836
25,446
26,154
26,166
26,512
52,282
53,877
INTEREST EXPENSE
Deposits
208
208
201
190
218
416
1,157
Short-Term Borrowings
324
412
639
498
421
736
553
Subordinated Notes Payable
308
307
311
316
374
615
845
Other Long-Term Borrowings
16
21
30
40
41
37
91
Total Interest Expense
856
948
1,181
1,044
1,054
1,804
2,646
Net Interest Income
25,980
24,498
24,973
25,122
25,458
50,478
51,231
Provision for Credit Losses
(571)
(982)
1,342
1,308
2,005
(1,553)
6,995
Net Interest Income after Provision for Credit Losses
26,551
25,480
23,631
23,814
23,453
52,031
44,236
NONINTEREST INCOME
Deposit Fees
4,236
4,271
4,713
4,316
3,756
8,507
8,771
Bank Card Fees
3,998
3,618
3,462
3,389
3,142
7,616
6,193
Wealth Management Fees
3,274
3,090
3,069
2,808
2,554
6,364
5,158
Mortgage Banking Revenues
13,217
17,125
17,711
22,983
19,397
30,342
22,650
Other
1,748
1,722
1,568
1,469
1,350
3,470
2,905
Total Noninterest Income
26,473
29,826
30,523
34,965
30,199
56,299
45,677
NONINTEREST EXPENSE
Compensation
25,378
26,064
26,722
26,164
23,658
51,442
43,394
Occupancy, Net
5,973
5,967
5,976
5,906
5,798
11,940
10,777
Other Real Estate, Net
(270)
(118)
567
219
116
(388)
(682)
Pension Adjustment
2,000
-
-
-
-
2,000
-
Other
9,042
8,563
8,083
8,053
7,731
17,605
14,783
Total Noninterest Expense
42,123
40,476
41,348
40,342
37,303
82,599
68,272
OPERATING PROFIT
10,901
14,830
12,806
18,437
16,349
25,731
21,641
Income Tax Expense
2,059
2,787
2,833
3,165
2,950
4,846
4,232
Net Income
8,842
12,043
9,973
15,272
13,399
20,885
17,409
Pre-Tax Income Attributable to Noncontrolling Interest
(1,415)
(2,537)
(2,227)
(4,875)
(4,253)
(3,952)
(3,976)
NET INCOME ATTRIBUTABLETO
COMMON SHAREOWNERS
$
7,427
$
9,506
$
7,746
$
10,397
$
9,146
$
16,933
$
13,433
PER COMMON SHARE
Basic Net Income
$
0.44
$
0.56
$
0.46
$
0.62
$
0.55
$
1.00
$
0.80
Diluted Net Income
0.44
0.56
0.46
0.62
0.55
1.00
0.80
Cash Dividend
$
0.15
$
0.15
$
0.15
$
0.14
$
0.14
$
0.30
$
0.28
AVERAGESHARES
Basic
16,858
16,838
16,763
16,771
16,797
16,848
16,803
Diluted
16,885
16,862
16,817
16,810
16,839
16,874
16,844
9
CAPITAL CITY BANK GROUP,INC.
ALLOWANCE FOR CREDIT LOSSES('ACL')
AND RISK ELEMENT ASSETS
Unaudited
2021
2020
June 30,
(Dollars in thousands, except per share data)
Second
Quarter
First
Quarter
Fourth
Quarter
Third
Quarter
Second
Quarter
2021
2020
ACL - HELD FOR INVESTMENT
Balance at Beginning of Period
$
22,026
$
23,816
$
23,137
$
22,457
$
21,083
$
23,816
$
13,905
Impact of Adopting ASC 326 (CECL)
-
-
-
-
-
-
3,269
Provision for Credit Losses
(184)
(2,312)
1,165
1,265
1,615
(2,496)
6,605
Net Charge-Offs (Recoveries)
(333)
(522)
486
585
241
(855)
1,322
Balance at End of Period
$
22,175
$
22,026
$
23,816
$
23,137
$
22,457
$
22,175
$
22,457
As a % of Loans HFI
1.10%
1.07%
1.19%
1.16%
1.11%
1.10%
1.11%
As a % of Nonperforming Loans
433.93%
410.78%
405.66%
420.30%
322.37%
433.93%
322.37%
ACL - UNFUNDED COMMITMENTS
Balance at Beginning of Period
2,974
$
1,644
$
1,467
$
1,424
$
1,033
$
1,644
$
157
Impact of Adopting ASC 326 (CECL)
-
-
-
-
-
-
876
Provision for Credit Losses
(387)
1,330
177
43
391
943
391
Balance at End of Period
(1)
2,587
2,974
1,644
1,467
1,424
2,587
1,424
CHARGE-OFFS
Commercial, Financial and Agricultural
$
32
$
69
$
104
$
137
$
186
$
101
$
548
Real Estate - Construction
-
-
-
-
-
-
-
Real Estate - Commercial
-
-
-
17
-
-
11
Real Estate - Residential
65
6
38
1
1
71
111
Real Estate - Home Equity
74
5
10
58
52
79
83
Consumer
230
564
668
619
634
794
1,498
Overdrafts
440
492
564
450
541
932
1,243
Total Charge-Offs
$
841
$
1,136
$
1,384
$
1,282
$
1,414
$
1,977
$
3,494
RECOVERIES
Commercial, Financial and Agricultural
$
103
$
136
$
64
$
74
$
74
$
239
$
114
Real Estate - Construction
-
-
50
-
-
-
-
Real Estate - Commercial
26
645
27
30
70
671
261
Real Estate - Residential
244
75
153
35
51
319
91
Real Estate - Home Equity
70
124
40
41
64
194
97
Consumer
332
311
306
280
365
643
633
Overdrafts
399
367
258
237
549
766
976
Total Recoveries
$
1,174
$
1,658
$
898
$
697
$
1,173
$
2,832
$
2,172
NET CHARGE-OFFS (RECOVERIES)
$
(333)
$
(522)
$
486
$
585
$
241
$
(855)
$
1,322
Net Charge-Offs as a % of AverageLoans HFI
(2)
(0.07)%
(0.10)%
0.09%
0.11%
0.05%
(0.08)%
0.14%
RISK ELEMENT ASSETS
Nonaccruing Loans
$
5,110
$
5,362
$
5,871
$
5,505
$
6,966
Other Real Estate Owned
1,192
110
808
1,227
1,059
Total Nonperforming Assets ('NPAs')
$
6,302
$
5,472
$
6,679
$
6,732
$
8,025
Past Due Loans 30-89 Days
$
3,745
$
2,622
$
4,594
$
3,191
$
2,948
Past Due Loans 90 Days or More
-
-
-
-
-
Classified Loans
19,397
20,608
17,631
16,772
17,091
Performing Troubled Debt Restructurings
$
8,992
$
13,597
$
13,887
$
14,693
$
15,133
Nonperforming Loans as a % of Loans HFI
0.25%
0.26%
0.29%
0.28%
0.34%
NPAs as a % of Loans HFI and Other Real Estate
0.31%
0.27%
0.33%
0.34%
0.40%
NPAs as a % ofTotal Assets
0.16%
0.14%
0.18%
0.19%
0.23%
(1)
Recorded in other liabilities
(2)
Annualized
10
CAPITAL CITY BANK GROUP,INC.
AVERAGEBALANCE AND INTEREST RATES
Unaudited
Second Quarter 2021
First Quarter 2021
Fourth Quarter 2020
Third Quarter 2020
Second Quarter 2020
Jun 2021 YTD
Jun 2020 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
$
77,101
$
566
2.94
%
$
106,242
$
970
3.70
%
$
121,052
$
878
3.85
%
$
92,522
671
3.64
%
$
74,965
$
550
3.41
%
$
91,591
$
1,536
3.38
%
$
55,181
$
906
3.30
%
Loans Held for Investment
(1)
2,036,781
24,095
4.74
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
2,040,551
46,578
4.71
1,915,370
46,571
4.89
Investment Securities
Taxable Investment Securities
687,882
2,036
1.18
528,842
1,863
1.41
513,277
2,072
1.61
553,395
2,401
1.73
601,509
2,708
1.80
608,801
3,899
1.28
615,511
5,703
1.86
Tax-Exempt Investment Securities
(1)
3,530
23
2.58
3,844
25
2.61
4,485
30
2.71
4,860
32
2.66
5,865
37
2.51
3,686
48
2.60
5,579
62
2.20
Total Investment Securities
691,412
2,059
1.19
532,686
1,888
1.42
517,762
2,102
1.62
558,255
2,433
1.74
607,374
2,745
1.81
612,487
3,947
1.29
621,090
5,765
1.86
Funds Sold
818,616
200
0.10
814,638
214
0.11
705,125
180
0.10
567,883
146
0.10
351,473
88
0.10
816,638
414
0.10
292,922
845
0.58
Total Earning Assets
3,623,910
$
26,920
2.98
%
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
%
3,561,267
$
52,475
2.97
%
2,884,563
$
54,087
3.77
%
Cash and Due From Banks
74,076
68,978
73,968
69,893
72,647
71,541
64,802
Allowance for Loan Losses
(22,794)
(24,128)
(23,725)
(22,948)
(21,642)
(23,457)
(18,015)
Other Assets
281,157
278,742
264,784
268,549
261,449
279,956
252,657
Total Assets
$
3,956,349
$
3,821,521
$
3,652,436
$
3,539,332
$
3,329,226
$
3,889,307
$
3,184,007
LIABILITIES:
Interest Bearing Deposits
NOW Accounts
$
966,649
$
74
0.03
%
$
985,517
$
76
0.03
%
$
879,564
$
66
0.03
%
$
826,776
$
61
0.03
%
$
789,378
$
78
0.04
%
$
976,031
$
150
0.03
%
$
799,094
$
803
0.20
%
Money Market Accounts
272,138
33
0.05
269,829
33
0.05
261,543
34
0.05
247,185
32
0.05
222,377
40
0.07
270,990
66
0.05
217,295
157
0.15
Savings Accounts
529,844
64
0.05
492,252
60
0.05
466,116
57
0.05
438,762
54
0.05
409,366
50
0.05
511,152
124
0.05
394,301
96
0.05
Time Deposits
102,995
37
0.15
102,089
39
0.15
102,809
44
0.17
104,522
43
0.16
104,718
50
0.19
102,544
76
0.15
105,130
101
0.19
Total Interest Bearing Deposits
1,871,626
208
0.04
%
1,849,687
208
0.05
%
1,710,032
201
0.05
%
1,617,245
190
0.05
%
1,525,839
218
0.06
%
1,860,717
416
0.05
%
1,515,820
1,157
0.15
%
Short-Term Borrowings
51,152
324
2.54
%
67,033
412
2.49
%
95,280
639
2.67
%
74,557
498
2.66
%
73,377
421
2.31
%
59,049
736
2.51
%
53,146
553
2.09
%
Subordinated Notes Payable
52,887
308
2.30
52,887
307
2.32
52,887
311
2.30
52,887
316
2.34
52,887
374
2.80
52,887
615
2.31
52,887
845
3.16
Other Long-Term Borrowings
1,762
16
3.38
2,736
21
3.18
3,700
30
3.18
5,453
40
2.91
5,766
41
2.84
2,246
37
3.26
6,039
91
3.03
Total Interest Bearing Liabilities
1,977,427
$
856
0.17
%
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
%
1,974,899
$
1,804
0.18
%
1,627,892
$
2,646
0.33
%
Noninterest Bearing Deposits
1,515,726
1,389,821
1,356,104
1,354,032
1,257,614
1,453,121
1,152,251
Other Liabilities
107,801
111,050
74,605
83,192
72,073
109,417
65,830
Total Liabilities
3,600,954
3,473,214
3,292,608
3,187,366
2,987,556
3,537,437
2,845,973
Temporary Equity
26,355
21,977
16,154
11,893
8,155
24,178
5,331
SHAREOWNERS' EQUITY:
329,040
326,330
343,674
340,073
333,515
327,692
332,703
Total Liabilities, TemporaryEquity and
Shareowners' Equity
$
3,956,349
$
3,821,521
$
3,652,436
$
3,539,332
$
3,329,226
$
3,889,307
$
3,184,007
Interest Rate Spread
$
26,064
2.81
%
$
24,607
2.77
%
$
25,082
2.88
%
$
25,233
3.01
%
$
25,564
3.30
%
$
50,671
2.79
%
$
51,441
3.44
%
Interest Income and Rate Earned
(1)
26,920
2.98
25,555
2.96
26,263
3.14
26,277
3.25
26,618
3.55
52,475
2.97
54,087
3.77
Interest Expense and Rate Paid
(2)
856
0.09
948
0.11
1,181
0.14
1,044
0.13
1,054
0.14
1,804
0.10
2,646
0.18
Net Interest Margin
$
26,064
2.89
%
$
24,607
2.85
%
$
25,082
3.00
%
$
25,233
3.12
%
$
25,564
3.41
%
$
50,671
2.87
%
$
51,441
3.59
%
(1)
Interest and average rates are calculatedon a tax-equivalent basis using a 21% Federal tax rate.
(2)
Rate calculated based on average earning assets.
11
CAPITAL CITY HOMELOANS
MORTGAGE BANKING ACTIVITY
Unaudited
Three Months Ended
Six Months Ended
(Dollars in thousands)
Jun 30, 2021
Mar 31, 2021
Jun 30, 2020
Jun 30, 2021
Jun 30, 2020
Net Interest Income
$
19
$
(153)
$
109
$
(134)
$
125
Mortgage Banking Fees
13,116
16,846
19,156
29,962
21,271
Other
425
426
203
851
299
Total NoninterestIncome
13,541
17,272
19,359
30,813
21,570
Salaries
8,538
10,276
8,381
18,814
10,623
Other Associate Benefits
210
221
204
431
253
Total Compensation
8,748
10,497
8,585
19,245
10,876
Occupancy, Net
854
861
768
1,715
999
Other
1,359
1,101
1,248
2,460
1,705
Total NoninterestExpense
10,961
12,459
10,601
23,420
13,580
Operating Profit
$
2,599
$
4,660
$
8,867
$
7,259
$
8,115
Key Performance Metrics
Total Loans Closed
$
406,859
$
463,126
$
407,118
$
869,985
$
510,008
Total Loans Closed- Mix
Purchase
76%
60%
51%
68%
53%
Refinance
24%
40%
49%
32%
47%