8-K
CAPITAL CITY BANK GROUP INC (CCBG)
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON,
DC 20549
FORM
8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report (Date of earliest event reported):
January 23, 2024
CAPITAL CITY BANK GROUP, INC.
(Exact name of registrant as specified in its charter)
Florida
0-13358
59-2273542
(State of Incorporation)
(Commission File Number)
(IRS Employer Identification No.)
217 North Monroe Street,
Tallahassee
,
Florida
32301
(Address of principal executive offices
(Zip Code)
Registrant's telephone number, including
area code: (
850
)
402-7821
(Former Name or Former Address, if Changed Since Last Report)
Check the appropriate box below if the Form 8-K filing is intended
to simultaneously satisfy the filing obligation of the registrant
under any of the following provisions (see General Instruction A.2.
below):
☐
Written communications pursuant to Rule 425
under the Securities Act (17 CFR 230.425)
☐
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange
Act (17 CFR 240.14d-2(b))
☐
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange
Act (17 CFR 240.13e-4(c))
Securities registered pursuant to Section 12(b) of the Act:
Title of each class
Trading Symbol(s)
Name of each exchange on which registered
Common Stock, Par value $0.01
CCBG
Nasdaq Stock Market
, LLC
Indicate by check mark whether the registrant is an emerging growth
company as defined in Rule 405 of the Securities Act of 1933
(§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of
1934 (§240.12b-2 of this chapter).
Emerging growth company
☐
If an emerging growth company,
indicate by check mark if the registrant has elected not to use the extended transition period
for
complying with any new or revised financial accounting standards pursuant
to Section 13(a) of The Exchange Act.
☐
CAPITAL CITY BANK
GROUP,
INC.
FORM 8-
K
CURRENT REPORT
Item 2.02.
Results of Operations and Financial Condition.
On January 23, 2024, Capital City Bank Group, Inc. (“CCBG”) issued an earnings
press release reporting CCBG’s financial
results for the three and twelve month periods ended December 31, 2023.
A copy of the press release is attached as Exhibit 99.1
hereto and incorporated herein by reference.
The information furnished under Item 2.02 of this Current Report, including
the Exhibits attached hereto, shall not be deemed
“filed” for purposes of Section 18 of the Securities Exchange Act of 1934, nor
shall it be deemed incorporated by reference in any
filing under the Securities Act of 1933, except as shall be expressly set forth by specific reference
in such filing.
Item 9.01.
Financial Statements and Exhibits.
(d)
Exhibits
.
Item No.
Description of Exhibit
99.1
Press release, dated January 23, 2024.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has
duly caused this report to be signed
on its behalf by the undersigned hereunto duly authorized.
CAPITAL CITY BANK
GROUP,
INC.
Date:
January 23, 2024
By:
/s/ Jeptha E. Larkin
Jeptha E. Larkin,
Executive Vice President
and Chief Financial Officer
EXHIBIT INDEX
Exhibit
Number
Description
99.1
Press release, dated January 23, 2024
ex991
Capital City Bank Group, Inc.
Reports Fourth Quarter 2023 Results
TALLAHASSEE, Fla.
(January 23, 2024) – Capital City Bank Group, Inc. (NASDAQ:
CCBG) today reported net income
attributable to common shareowners of $11.7
million, or $0.70 per diluted share, for the fourth quarter of 2023 compared to $12.7
million, or $0.74 per diluted share, for the third quarter of 2023, and $9.6
million, or $0.56 per diluted share, for the fourth quarter of
2022.
For the full year of 2023, net income attributable to common shareowners
totaled $52.3 million, or $3.07 per diluted share, compared
to net income of $33.4 million, or $1.97 per diluted share, for the same period
of 2022.
QUARTER HIGHLIGHTS (4
th
Quarter 2023 versus 3
rd
Quarter 2023)
Income Statement
●
Tax-equivalent
net interest income totaled $39.3 million compared
to $39.4 million for the prior quarter – total deposit cost
increased 8 basis points to 66 basis points –
net interest margin increased
four basis points to 4.07%
●
Continued strong credit
quality metrics – allowance coverage ratio increased
from 1.08% to 1.10% - net loan charge
-offs were
23 basis points (annualized) of average loans compared
to 17 basis points for the prior quarter
●
Noninterest income increased
$0.4 million, or 2.6%, driven by higher mortgage banking revenues
●
Noninterest expense increased
$0.9 million, or 2.2%, primarily due to lower realized loan
cost (credit offset to salary expense)
reflective of lower level of residential
loan originations and higher professional/legal
fees of $0.6 million
Balance Sheet
●
Loan balances grew $38.6 million, or 1.4%
(average), and $28.7 million, or 1.1% (end of period)
●
Deposit balances (including repurchase
agreements) declined by $46.8 million, or
1.3% (average), and increased $165.4 million,
or 4.6% (end of period) reflective of the seasonal
increase in public fund balances
●
Tangible
book value per share increased $1.23,
or 6.4%, and reflected a $12.5 million ($0.74/share)
decrease in the accumulated
other comprehensive loss reflective
of lower investment security losses of $9.3 million and a favorable
year-end re-measurement
adjustment for the pension plan of $4.3 million
FULL YEAR 2023 HIGHLIGHTS
Income Statement
●
Tax-equivalent
net interest income totaled $159.4 million
for 2023 compared to $125.3 million for 2022 driven
by strong loan
growth and higher interest
rates, partially offset by higher deposit cost which was well controlled
at 48 basis points for the year
– net interest margin
was 4.05% for 2023 compared to 3.14% for 2022
●
Credit quality metrics remained
strong throughout
the year – allowance coverage ratio increased from
0.98% to 1.10% - net
loan charge-offs were 18
basis points of average loans for both periods
●
Noninterest income decreased
$3.6 million, or 4.8%, driven by lower wealth management fees reflective
of lower insurance
commissions (large policy sales in 2022) and
mortgage banking revenues (lower residential
loan originations attributable to the
higher interest rate environment
)
●
Noninterest expense increased
$5.4 million, or 3.6%, primarily due to higher compensation and occupancy
expense reflective of
the addition of staffing and banking offices in our new markets
Balance Sheet
●
Loan balances grew $467.0 million, or 21.3%
(average), and $186.2 million, or 7.3% (end of period)
●
Deposit balances (including repurchase
agreements) declined by $81.9 million, or
2.2% (average), and decreased $217.1
million, or 5.5% (end of period)
●
Tangible
book value per share increased $3.18,
or 18.4%, driven by strong earnings and favorable investment
security and
pension plan accumulated other comprehensive
loss adjustments
“I am pleased with Capital City’s performance
this year and am very proud of our team for achieving another year of record
earnings,” said William G. Smith, Jr.,
Chairman, President, and CEO of Capital City Bank Group, Inc. “Amid a challenging
year for
our industry, our deposit
franchise, disciplined credit, diversified revenues, and conservative balance
sheet management resulted in
strong profitability and capital growth.
We are well positioned
as we enter 2024 and remain focused on strategies that add long-term
value for our clients and shareowners.”
2
Discussion of Operating Results
Net Interest Income/Net Interest
Margin
Tax-equivalent net
interest income for the fourth quarter of 2023 totaled $39.3 million, compared
to $39.4 million for the third
quarter of 2023, and $38.2 million for the fourth quarter of 2022.
For the full year of 2023, tax-equivalent net interest income totaled
$159.4 million compared to $125.3 million for the same period of 2022.
Compared to the third quarter of 2023, the decrease
reflected higher deposit interest expense and a lower level of interest income
from overnight funds, partially offset by higher loan
interest due to loan growth and loan re-pricing at higher interest rates.
Compared to the full year 2022, the increase reflected loan
growth and higher interest rates across a majority of our earning assets, partially
offset by higher deposit interest expense.
Our net interest margin for the fourth quarter of 2023 was 4.07%,
an increase of four basis points over the third quarter of 2023 and
an increase of 31 basis points over the fourth quarter of 2022.
For the month of December 2023, our net interest margin was 4.09%.
For 2023, our net interest margin was 4.05%, an increase of 91 basis points
over 2022.
The increase compared to all prior periods
reflected a combination of earning assets re-pricing at higher interest
rates and loan growth, partially offset by a higher cost of
deposits.
For the fourth quarter of 2023, our cost of funds was 73 basis points, an increase of 7 basis points
over the third quarter of
2023 and an increase of 42 basis points over the fourth quarter of 2022.
Our total cost of deposits (including noninterest bearing
accounts) was 66 basis points, 58 basis points, and 20 basis points, respectively,
for the same periods.
Provision for Credit Losses
We recorded
a provision for credit losses of $2.0
million for the fourth quarter of 2023 compared to $2.4
million for the third
quarter of 2023 and $3.6 million for the fourth quarter of 2022.
The decrease in the provision compared to the third quarter of 2023
was primarily attributable to a lower level of reserves required for unfunded commitments
.
For the full year of 2023, we recorded a
provision for credit losses of $9.7 million compared to $7.5 million for 2022.
The higher level of provision in 2023 was primarily
driven by loan growth and also reflected the favorable impact in 2022 of the
release of reserves held for pandemic related losses.
We discuss the allowance
for credit losses further below.
Noninterest Income and Noninterest
Expense
Noninterest income for the fourth quarter of 2023 totaled $17.1 million
compared to $16.7 million for the third quarter of 2023 and
$15.3 million for the fourth quarter of 2022.
The $0.4 million increase over the third quarter of 2023 reflected an increase in
mortgage banking revenues of $0.5 million and wealth management
fees of $0.3 million, partially offset by a decrease in deposit
fees of $0.2 million and other income of $0.2 million.
Compared to the fourth quarter of 2022, the $1.9 million increase was
attributable to a $2.2 million increase in mortgage banking revenues
and a $0.6 million increase in wealth management fees
partially offset by a $0.7 million decrease in other income
and a $0.2 million decrease in deposit fees.
For the full year of 2023, noninterest income totaled $71.6 million compared
to $75.2 million for 2022 and reflected decreases in
wealth management fees of $1.7 million, mortgage banking revenues
of $1.5 million, deposit fees of $0.8 million, and bank card
fees of $0.5 million, partially offset by a $0.9 million
increase in other income.
The decrease in wealth management fees reflected
lower insurance commissions of $2.7 million due to the sale of large
policies in 2022 and was partially offset by higher trust fees of
$0.5 million and retail brokerage fees of $0.5 million.
The decrease in mortgage banking revenues was primarily driven by lower
production volume in 2023, reflective of the rapid increase in interest rates
and lower market driven gain on sale margins.
The
decline in deposit fees reflected lower commercial account analysis fees and account
service charge fees, and the reduction in bank
card fees was generally due to lower card volume reflective of
slower consumer spending.
The increase in other income was
primarily due to a $1.4 million gain from the sale of mortgage servicing rights
that was partially offset by lower loan servicing
income.
Noninterest expense for the fourth quarter of 2023 totaled $40.0 million
compared to $39.1 million for the third quarter of 2023 and
$39.3
million for the fourth quarter of 2022.
The $0.9 million increase over the third quarter of 2023 was attributable to increases in
compensation expense of $0.8 million and occupancy expense of $0.2 million
that was partially offset by a $0.1 million decrease in
other expense.
The increase in compensation expense was due to a $0.8 million increase in salary expense
partially attributable to a
$0.5 million decrease in realized loan cost (recorded as a credit offset
to salary expense) driven by lower residential loan
originations.
For the fourth quarter of 2023, other expense included approximately $0.6 million in professional
and legal fees
related to the financial statement restatement.
3
Compared to the fourth quarter of 2022, the $0.7 million increase in noninterest
expense reflected a $0.8 million increase in
compensation expense and a $0.8 million increase in occupancy expense
that was partially offset by a $0.9 million decrease in other
expense.
The increases in compensation expense and occupancy expense were generally
driven by the same factors discussed in
further detail below.
The variance in other expense was primarily attributable to lower pension related
costs, including the
recognition of pension settlement expense of $1.7 million in the fourth quarter
of 2022 whereas there was no pension settlement
expense in the fourth quarter of 2023 due to a significantly lower level of
retirements.
A
$0.7 million increase in the non-service
component of pension plan expense was partially offsetting
.
For the full year of 2023, noninterest expense totaled $157.0 million compared
to $151.6 million for 2022 and reflected increases in
occupancy expense of $3.1
million and compensation expense of $2.3 million.
The increase in occupancy expense was primarily
driven by the addition of four new banking offices in mid-to-late 2022 and
early 2023, and to a lesser extent higher expense for
property insurance (increased premiums) and maintenance agreements
(network and security upgrades).
The increase in
compensation expense reflected a $4.7 million increase in salary expense
that was partially offset by a $2.4 million decrease in
associate benefit expense.
The increase in salary expense was primarily due to a $3.6 million increase in base salaries (primarily
the
addition of staffing in new markets and annual merit), a $3.0 million
reduction in realized cost (lower new residential loan
originations in 2023) and higher incentive expense of $1.2 million that was partially
offset by lower commission expense of $3.3
million (lower residential loan originations and insurance policy sales in 2023)
.
The decrease in associate benefit expense reflected
a $2.9 million decrease in pension plan service cost expense that was partially offset
by a $0.5 million increase in associate
insurance expense (higher premiums).
The net variance in other expense was primarily due to lower expenses for OREO
of $1.6
million (gain from the sale of a banking office in the first quarter
of 2023), mortgage servicing asset amortization of $1.0 million
(mid-2023 sale of servicing rights),
and pension plan expense (non-service component) of $0.5 million, offset
by higher expenses
for professional fees of $0.8 million and FDIC insurance of $0.6 million.
Further, there was no pension settlement expense in 2023
whereas we realized $2.3 million in total pension settlement expense
in 2022.
Income Taxes
We realized income
tax expense of $2.9 million (effective rate of 20.3%) for the
fourth quarter of 2023 compared to $3.0 million
(effective rate of 20.7%) for the third quarter of 2023
and $1.9 million (effective rate of 18.1%) for the fourth quarter of 2022.
For
the full year of 2023, we realized income tax expense of $13.0 million (effective
rate of 20.4%) compared to $7.8 million (effective
rate of 19.0%) for 2022.
The increase in our effective tax rate for the fourth quarter of 2023 reflected
a lower level of tax benefit
accrued from an investment in a solar tax credit equity fund.
The increase in our effective tax rate for the full year of 2023 was
attributable to a lower level of pre-tax income from our 51% owned residential
mortgage subsidiary, Capital City Home
Loans
(“CCHL”), in relation to our consolidated income as the non-controlling
interest adjustment for CCHL is accounted for as a
permanent tax adjustment.
Further, we recognized a lower level of tax benefit
accrued from an investment in a solar tax credit
equity fund.
Absent discrete items or new tax credit investments, we expect our annual effective
tax rate to approximate 21-22% for
2024.
Discussion of Financial Condition
Earning Assets
Average earning
assets totaled $3.824 billion for the fourth quarter of 2023, a decrease of $53.0
million, or 1.4%, from the third
quarter of 2023, and a decrease of $208.8 million, or 5.2%, from the fourth
quarter of 2022.
The decrease from both prior periods
was attributable to lower deposit balances (see below –
Deposits
).
Compared to both prior periods, the mix of earning assets
improved as overnight funds were utilized to fund loan growth.
Average loans
held for investment (“HFI”) increased $38.6 million, or 1.4%, over the
third quarter of 2023 and $271.9 million, or
11.1%, over the fourth quarter of 2022.
Period end loans increased $28.7 million, or 1.1%, over the third quarter of 2023 and
$186.2 million, or 7.3%, over the fourth quarter of 2022.
Compared to both prior periods, the loan growth was primarily in the
residential real estate category and was partially offset by lower indirect
auto and construction loan balances.
Allowance for Credit Losses
At December 31, 2023, the allowance for credit losses for HFI loans totaled $29.9
million compared to $29.1 million at September
30, 2023 and $25.1 million at December 31, 2022.
Activity within the allowance is provided on Page 9.
The increase in the
allowance over both prior periods was driven primarily by loan growth.
Further, the increase from December 31, 2022 reflected
a
higher loss rate for the residential real estate portfolio due to slower prepayment
speeds.
At December 31, 2023, the allowance
represented 1.10% of HFI loans compared to 1.08% at September 30, 2023, and
0.98% at December 31, 2022.
4
Credit Quality
Overall credit quality remains
strong.
Nonperforming assets (nonaccrual loans and other real estate) totaled $6.2
million at
December 31, 2023 compared to $4.7 million at September 30, 2023
and $2.7 million at December 31, 2022.
At December 31,
2023, nonperforming assets as a percent of total assets equaled 0.15%,
compared to 0.11% at September 30, 2023
and 0.06% at
December 31, 2022.
Nonaccrual loans totaled $6.2 million at December 31, 2023, a $1.5 million increase
over September 30, 2023
and a $3.9 million increase over December 31, 2022.
Further, classified loans totaled $22.2 million
at December 31, 2023, a $0.4
million increase over September 30, 2023 and a $2.9 million increase over
December 31, 2022.
Deposits
Average total
deposits were $3.549 billion for the fourth quarter of 2023, a decrease of $48.3 million, or
1.3%, from the third
quarter of 2023 and a decrease of $254.5 million, or 6.7%, from the
fourth quarter of 2022.
Compared to both prior periods, the
decreases were primarily attributable to lower noninterest bearing and
savings accounts, partially offset by increases in NOW
balances and certificates of deposit.
At December 31, 2023, total deposits were $3.702 billion, an increase of $161.4
million, or 4.6%, from September 30, 2023 and a
decline of $237.5 million, or 6.0%, from December 31, 2022.
Our public fund deposit balances increased $234.4 million and
declined $10.9 million from September 30, 2023 and December 31, 2022,
respectively.
Compared to September 30, 2023, the
increase in public funds reflected the seasonal increase in these balances as municipal
tax receipts are received.
Lower deposit
balances year-over-year reflected continued
client spend of stimulus savings and clients seeking higher yielding investment
products outside the Bank, a portion of which have moved to our wealth division.
Additionally, compared
to both prior periods, we
realized a remix of deposit balances of $33 million and $140 million, respectively,
as noninterest bearing accounts migrated into
interest bearing accounts (primarily NOW and money market accounts
).
Business deposit transaction accounts classified as repurchase agreements
averaged $26.8 million for the fourth quarter of 2023, an
increase of $1.5 million over the third quarter of 2023 and $18.4 million over
the fourth quarter of 2022.
At December 31, 2023,
repurchase agreement balances were $27.0 million compared to $22.9
million at September 30, 2023 and $6.6 million at December
31, 2022.
Liquidity
The Bank maintained an average net overnight funds (deposits with banks plus
FED funds sold less FED funds purchased) sold
position of $99.8 million in the fourth quarter of 2023 compared to $136.6
million in the third quarter of 2023 and $469.4 million in
the fourth quarter of 2022.
The declining overnight funds position reflected growth in average loans and lower
average deposit
balances.
At December 31, 2023, we had the ability to generate approximately $1.488
billion (excludes overnight funds position of $229
million) in additional liquidity through various sources including
various federal funds purchased lines, Federal Home Loan Bank
borrowings, the Federal Reserve Discount Window,
and brokered deposits.
We also view our
investment portfolio as a liquidity source and have the option to pledge securities in our
portfolio as collateral for
borrowings or deposits, and/or to sell selected securities.
Our portfolio consists of debt issued by the U.S. Treasury,
U.S.
governmental agencies, municipal governments, and corporate entities.
At December 31, 2023, the weighted-average maturity and
duration of our portfolio were 2.91 years and 2.53, respectively,
and the available-for-sale portfolio had a net unrealized tax-effected
loss of $22.3
million.
Capital
Shareowners’ equity was $440.6 million at December 31, 2023
compared to $419.7 million at September 30, 2023 and $387.3
million at December 31, 2022.
For the fourth quarter of 2023, the $20.9 million increase was partially attributable
to a $12.5
million decrease in the accumulated other comprehensive loss including
a $9.3 million net decrease in the investment securities loss
and a $4.3 million decrease in the pension plan loss from the year-end
re-measurement of the plan.
For the full year 2023,
shareowners’ equity was positively impacted by net income attributable
to common shareowners of $52.3 million, a $4.1
million
decrease in the accumulated other comprehensive loss for our pension plan,
a $11.7 million decrease in the unrealized loss on
investment securities, the issuance of stock of $2.5
million, and stock compensation accretion of $1.3
million.
Shareowners’ equity
was reduced by common stock dividends of $12.9 million ($0.76 per
share), the repurchase of stock of $3.7
million (122,538
shares), net adjustments totaling $1.3 million related to transactions under
our stock compensation plans,
and a $0.7 million
decrease in the fair value of the interest rate swap related to subordinated debt.
5
At December 31, 2023, our total risk-based capital ratio was 16.57% compared
to 16.30% at September 30, 2023 and 15.30% at
December 31, 2022.
Our common equity tier 1 capital ratio was 13.52%, 13.26%, and 12.38%, respectively,
on these dates.
Our
leverage ratio was 10.30%, 9.98%, and 8.91%, respectively,
on these dates.
At December 31, 2023, all our regulatory capital ratios
exceeded the thresholds
to be designated as “well-capitalized” under the Basel III capital standards.
Further, our tangible common
equity ratio was 8.26% at December 31, 2023 compared to 8.08% and 6.65% at
September 30, 2023 and December 31, 2022,
respectively.
If our unrealized held-to-maturity securities losses of $21.5 million (after-tax)
were recognized in accumulated other
comprehensive loss, our adjusted tangible capital ratio would be
7.74%.
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 63 banking offices and 103 ATM
s/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 words “may,” “could,” “should,”
“would,” “believe,”
“anticipate,” “estimate,” “expect,” “intend,” “plan,” “target,” “vision,”
“goal,” and similar expressions are intended to identify
forward-looking statements. The following factors, among others, could cause our actual
results to differ: our ability to successfully
manage credit risk, interest rate risk, liquidity risk, and other risks inherent
to our industry; legislative or regulatory changes; adverse
developments in the financial services industry generally,
such as bank failures and any related impacts on depositor behavior; the
effects of changes in the level of checking or savings account deposits
and the competition for deposits on our funding costs, net
interest margin and ability to replace maturing deposits and advances,
as necessary; inflation, interest rate, market and monetary
fluctuations; uncertainty in the pricing of residential mortgage loans
that we sell, as well as competition for the mortgage servicing
rights related to these loans and related interest rate risk or price risk resulting
from retaining mortgage servicing rights and the
potential effects of higher interest rates on our loan origination
volumes; the effects of actions taken by governmental agencies
to
stabilize the financial system and the effectiveness of such actions;
changes in monetary and fiscal policies of the U.S. Government;
the effects of security breaches and computer viruses that may
affect our computer systems or fraud related to debit card products;
the accuracy of our financial statement estimates and assumptions,
including the estimates used for our allowance for credit losses,
deferred tax asset valuation and pension plan; changes in our liquidity
position; changes in accounting principles, policies, practices
or guidelines; the frequency and magnitude of foreclosure of our loans; the effects
of our lack of a diversified loan portfolio,
including the risks of loan segments, geographic and industry concentrations; the
strength of the United States economy in general
and the strength of the local economies in which we conduct operations; our
ability to declare and pay dividends, the payment of
which is subject to our capital requirements; changes in the securities and real estate markets;
structural changes in the markets for
origination, sale and servicing of residential mortgages; risks related to changes
in key personnel and any changes in our ability to
retain key personnel;
the effect of corporate restructuring, acquisitions or dispositions, including
the actual restructuring and other
related charges and the failure to achieve the expected gains, revenue
growth or expense savings from such corporate restructuring,
acquisitions or dispositions; the effects of natural disasters, harsh
weather conditions (including hurricanes), widespread health
emergencies (including pandemics, such as the COVID-19
pandemic), acts of war, terrorism, civil unrest
or other geopolitical
events; our ability to comply with the extensive laws and regulations to which
we are subject, including the laws for each jurisdiction
where we operate; the impact of the restatement of our previously issued financial
statements as of and for the year ended December
31, 2022, the three months ended March 31, 2022 and 2023, the three and six months
ended June 30, 2022 and 2023, and the three
and nine months ended September 30, 2022; any inability to implement
and maintain effective internal control over financial
reporting or inability to remediate our existing material weaknesses in our
internal controls deemed ineffective; the inherent
limitations in internal control over financial reporting and disclosure controls
and procedures; the willingness of clients to accept
third-party products and services rather than our products and services and vice
versa; increased competition and its effect on
pricing; technological changes; the outcomes of litigation or regulatory proceedings;
negative publicity and the impact on our
reputation; changes in consumer spending and saving habits; growth and
profitability of our noninterest income; the limited trading
activity of our common stock; the concentration of ownership of our
common stock; anti-takeover provisions under federal and state
law as well as our Articles of Incorporation and our Bylaws; other risks described
from time to time in our filings with the Securities
and Exchange Commission; and our ability to manage the risks involved
in the foregoing.
Additional factors can be found in our
Annual Report on Form 10-K/A for the fiscal year ended December 31, 2022,
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,
except as may be required by law.
6
USE OF NON-GAAP FINANCIAL MEASURES
Unaudited
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)
Dec 31, 2023
Sep 30, 2023
Jun 30, 2023
Mar 31, 2023
Dec 31, 2022
Shareowners' Equity (GAAP)
$
440,625
$
419,706
$
412,422
$
403,260
$
387,281
Less: Goodwill and Other Intangibles (GAAP)
92,933
92,973
93,013
93,053
93,093
Tangible Shareowners' Equity (non-GAAP)
A
347,692
326,733
319,409
310,207
294,188
Total Assets (GAAP)
4,304,477
4,138,287
4,391,206
4,401,762
4,519,223
Less: Goodwill and Other Intangibles (GAAP)
92,933
92,973
93,013
93,053
93,093
Tangible Assets (non-GAAP)
B
$
4,211,544
$
4,045,314
$
4,298,193
$
4,308,709
$
4,426,130
Tangible Common Equity Ratio (non-GAAP)
A/B
8.26%
8.08%
7.43%
7.20%
6.65%
Actual Diluted Shares Outstanding (GAAP)
C
17,000,590
16,997,886
17,025,023
17,049,913
17,039,401
Tangible Book Value
per Diluted Share (non-GAAP)
A/C
$
20.45
$
19.22
$
18.76
$
18.19
$
17.27
7
CAPITAL CITY BANK
GROUP,
INC.
EARNINGS HIGHLIGHTS
Unaudited
Three Months Ended
Twelve Months Ended
(Dollars in thousands, except per share data)
Dec 31, 2023
Sep 30, 2023
Dec 31, 2022
Dec 31, 2023
Dec 31, 2022
EARNINGS
Net Income Attributable to Common Shareowners
$
11,720
$
12,655
$
9,609
52,258
$
33,412
Diluted Net Income Per Share
$
0.70
$
0.74
$
0.56
3.07
$
1.97
PERFORMANCE
Return on Average Assets (annualized)
1.12
%
1.19
%
0.87
%
1.22
%
0.77
%
Return on Average Equity (annualized)
10.69
11.74
10.02
12.40
8.81
Net Interest Margin
4.07
4.03
3.76
4.05
3.14
Noninterest Income as % of Operating Revenue
30.46
29.87
28.65
31.05
37.55
Efficiency Ratio
70.82
%
69.71
%
73.41
%
67.99
%
75.62
%
CAPITAL ADEQUACY
Tier 1 Capital
15.37
%
15.11
%
14.27
%
15.37
%
14.27
%
Total Capital
16.57
16.30
15.30
16.57
15.30
Leverage
10.30
9.98
8.91
10.30
8.91
Common Equity Tier 1
13.52
13.26
12.38
13.52
12.38
Tangible Common Equity
(1)
8.26
8.08
6.65
8.26
6.65
Equity to Assets
10.24
%
10.14
%
8.57
%
10.24
%
8.57
%
ASSET QUALITY
Allowance as % of Non-Performing Loans
479.70
%
619.58
%
1091.33
%
479.70
%
1091.33
%
Allowance as a % of Loans HFI
1.10
1.08
0.98
1.10
0.98
Net Charge-Offs as % of Average Loans HFI
0.23
0.17
0.21
0.18
0.18
Nonperforming Assets as % of Loans HFI and OREO
0.23
0.17
0.11
0.23
0.11
Nonperforming Assets as % of Total Assets
0.15
%
0.11
%
0.06
%
0.15
%
0.06
%
STOCK PERFORMANCE
High
$
32.56
$
33.44
$
36.23
36.86
$
36.23
Low
26.12
28.64
31.14
26.12
24.43
Close
$
29.43
$
29.83
$
32.50
29.43
$
32.50
Average Daily Trading Volume
33,297
26,774
31,894
33,775
27,987
(1)
Tangible common equity ratio is a non-GAAP financial measure. For additional information, including a
reconciliation to GAAP, refer to Page 6.
8
CAPITAL CITY BANK GROUP, INC.
CONSOLIDATED STATEMENT
OF FINANCIAL CONDITION
Unaudited
2023
2022
(Dollars in thousands)
Fourth Quarter
Third Quarter
Second Quarter
First Quarter
Fourth Quarter
ASSETS
Cash and Due From Banks
$
83,118
$
72,379
$
83,679
$
84,549
$
72,114
Funds Sold and Interest Bearing Deposits
228,949
95,119
285,129
303,403
528,536
Total Cash and Cash Equivalents
312,067
167,498
368,808
387,952
600,650
Investment Securities Available for Sale
337,902
334,052
386,220
402,943
413,294
Investment Securities Held to Maturity
625,022
632,076
641,398
651,755
660,744
Other Equity Securities
3,450
3,585
1,703
1,883
10
Total Investment Securities
966,374
969,713
1,029,321
1,056,581
1,074,048
Loans Held for Sale
28,211
34,013
44,659
28,475
26,909
Loans Held for Investment ("HFI"):
Commercial, Financial, & Agricultural
225,190
221,704
227,219
236,263
247,362
Real Estate - Construction
196,091
197,526
226,404
253,903
234,519
Real Estate - Commercial
825,456
828,234
831,285
798,438
782,557
Real Estate - Residential
1,001,257
966,512
893,384
847,697
744,167
Real Estate - Home Equity
210,920
203,606
203,142
206,931
208,217
Consumer
270,994
285,122
295,646
305,324
324,450
Other Loans
2,962
1,401
5,425
7,660
5,346
Overdrafts
1,048
1,076
1,007
931
1,067
Total Loans Held for Investment
2,733,918
2,705,181
2,683,512
2,657,147
2,547,685
Allowance for Credit Losses
(29,941)
(29,083)
(28,243)
(26,808)
(25,068)
Loans Held for Investment, Net
2,703,977
2,676,098
2,655,269
2,630,339
2,522,617
Premises and Equipment, Net
81,266
81,677
82,062
82,055
82,138
Goodwill and Other Intangibles
92,933
92,973
93,013
93,053
93,093
Other Real Estate Owned
1
1
1
13
431
Other Assets
119,648
116,314
118,073
123,294
119,337
Total Other Assets
293,848
290,965
293,149
298,415
294,999
Total Assets
$
4,304,477
$
4,138,287
$
4,391,206
$
4,401,762
$
4,519,223
LIABILITIES
Deposits:
Noninterest Bearing Deposits
$
1,377,934
$
1,472,165
$
1,520,134
$
1,601,388
$
1,653,620
NOW Accounts
1,327,420
1,092,996
1,269,839
1,242,721
1,290,494
Money Market Accounts
319,319
304,323
321,743
271,880
267,383
Savings Accounts
547,634
571,003
590,245
617,310
637,374
Certificates of Deposit
129,515
99,958
86,905
90,621
90,446
Total Deposits
3,701,822
3,540,445
3,788,866
3,823,920
3,939,317
Repurchase Agreements
26,957
22,910
22,619
4,429
6,583
Other Short-Term Borrowings
8,384
18,786
28,054
22,203
50,210
Subordinated Notes Payable
52,887
52,887
52,887
52,887
52,887
Other Long-Term Borrowings
315
364
414
463
513
Other Liabilities
66,080
75,585
77,192
85,878
73,675
Total Liabilities
3,856,445
3,710,977
3,970,032
3,989,780
4,123,185
Temporary Equity
7,407
7,604
8,752
8,722
8,757
SHAREOWNERS' EQUITY
Common Stock
170
170
170
170
170
Additional Paid-In Capital
36,326
36,182
36,853
37,512
37,331
Retained Earnings
426,275
418,030
408,771
397,654
387,009
Accumulated Other Comprehensive Loss, Net of Tax
(22,146)
(34,676)
(33,372)
(32,076)
(37,229)
Total Shareowners' Equity
440,625
419,706
412,422
403,260
387,281
Total Liabilities, Temporary Equity and Shareowners' Equity
$
4,304,477
$
4,138,287
$
4,391,206
$
4,401,762
$
4,519,223
OTHER BALANCE SHEET DATA
Earning Assets
$
3,957,452
$
3,804,026
$
4,042,621
$
4,045,607
$
4,177,177
Interest Bearing Liabilities
2,412,431
2,163,227
2,372,706
2,302,514
2,395,890
Book Value Per Diluted Share
$
25.92
$
24.69
$
24.21
$
23.65
$
22.73
Tangible Book Value
Per Diluted Share
(1)
20.45
19.22
18.76
18.19
17.27
Actual Basic Shares Outstanding
16,950
16,958
16,992
17,022
16,987
Actual Diluted Shares Outstanding
17,001
16,998
17,025
17,050
17,039
(1)
Tangible book value per diluted share is a non-GAAP financial measure. For additional
information, including a reconciliation to GAAP, refer to Page 6.
9
CAPITAL CITY BANK
GROUP,
INC.
CONSOLIDATED STATEMENT
OF OPERATIONS
Unaudited
2023
2022
Twelve Months
Ended December 31,
(Dollars in thousands, except per share data)
Fourth
Quarter
Third
Quarter
Second
Quarter
First
Quarter
Fourth
Quarter
2023
2022
INTEREST INCOME
Loans, including Fees
$
40,407
$
39,344
$
37,608
$
34,891
$
31,908
$
152,250
$
106,444
Investment Securities
4,392
4,561
4,815
4,924
4,847
18,692
15,955
Federal Funds Sold and Interest Bearing Deposits
1,385
1,848
2,782
4,111
4,463
10,126
9,511
Total Interest Income
46,184
45,753
45,205
43,926
41,218
181,068
131,910
INTEREST EXPENSE
Deposits
5,872
5,214
4,008
2,488
1,902
17,582
3,444
Repurchase Agreements
199
190
115
9
7
513
14
Other Short-Term Borrowings
310
440
336
452
683
1,538
1,747
Subordinated Notes Payable
627
625
604
571
522
2,427
1,652
Other Long-Term Borrowings
5
4
5
6
8
20
31
Total Interest Expense
7,013
6,473
5,068
3,526
3,122
22,080
6,888
Net Interest Income
39,171
39,280
40,137
40,400
38,096
158,988
125,022
Provision for Credit Losses
2,025
2,393
2,197
3,099
3,616
9,714
7,494
Net Interest Income after Provision for Credit Losses
37,146
36,887
37,940
37,301
34,480
149,274
117,528
NONINTEREST INCOME
Deposit Fees
5,304
5,456
5,326
5,239
5,536
21,325
22,121
Bank Card Fees
3,713
3,684
3,795
3,726
3,744
14,918
15,401
Wealth Management Fees
4,276
3,984
4,149
3,928
3,649
16,337
18,059
Mortgage Banking Revenues
2,327
1,839
3,363
2,871
102
10,400
11,909
Other
1,537
1,765
3,334
1,994
2,265
8,630
7,691
Total Noninterest Income
17,157
16,728
19,967
17,758
15,296
71,610
75,181
NONINTEREST EXPENSE
Compensation
23,822
23,003
23,438
23,524
23,032
93,787
91,519
Occupancy, Net
7,098
6,980
6,820
6,762
6,253
27,660
24,574
Other
9,038
9,122
10,027
7,389
9,977
35,576
35,541
Total Noninterest Expense
39,958
39,105
40,285
37,675
39,262
157,023
151,634
OPERATING PROFIT
14,345
14,510
17,622
17,384
10,514
63,861
41,075
Income Tax Expense
2,909
3,004
3,417
3,710
1,900
13,040
7,798
Net Income
11,436
11,506
14,205
13,674
8,614
50,821
33,277
Pre-Tax Loss (Income) Attributable to Noncontrolling Interest
284
1,149
(31)
35
995
1,437
135
NET INCOME ATTRIBUTABLE
TO
COMMON SHAREOWNERS
$
11,720
$
12,655
$
14,174
$
13,709
$
9,609
$
52,258
$
33,412
PER COMMON SHARE
Basic Net Income
$
0.69
$
0.75
$
0.83
$
0.81
$
0.56
$
3.08
$
1.97
Diluted Net Income
0.70
0.74
0.83
0.80
0.56
3.07
1.97
Cash Dividend
$
0.20
$
0.20
$
0.18
$
0.18
$
0.17
$
0.76
$
0.66
AVERAGE
SHARES
Basic
16,947
16,985
17,002
17,016
16,963
16,987
16,951
Diluted
16,997
17,025
17,035
17,045
17,016
17,023
16,985
10
CAPITAL CITY BANK GROUP,
INC.
ALLOWANCE FOR CREDIT LOSSES ("ACL")
AND CREDIT QUALITY
Unaudited
2023
2022
Twelve Months Ended
December 31,
(Dollars in thousands, except per share data)
Fourth
Quarter
Third
Quarter
Second
Quarter
First
Quarter
Fourth
Quarter
2023
2022
ACL - HELD FOR INVESTMENT LOANS
Balance at Beginning of Period
$
29,083
$
28,243
$
26,808
$
25,068
$
22,747
$
25,068
$
21,606
Transfer from Other Liabilities
66
-
-
-
-
66
-
Provision for Credit Losses
2,354
1,993
1,922
3,260
3,638
9,529
7,397
Net Charge-Offs (Recoveries)
1,562
1,153
487
1,520
1,317
4,722
3,935
Balance at End of Period
$
29,941
$
29,083
$
28,243
$
26,808
$
25,068
$
29,941
$
25,068
As a % of Loans HFI
1.10%
1.08%
1.05%
1.01%
0.98%
1.10%
0.98%
As a % of Nonperforming Loans
479.70%
619.58%
426.44%
584.18%
1,091.33%
479.70%
1,091.33%
ACL - UNFUNDED COMMITMENTS
Balance at Beginning of Period
3,502
$
3,120
$
2,833
$
2,989
$
3,012
$
2,989
$
2,897
Provision for Credit Losses
(311)
382
287
(156)
(23)
202
92
Balance at End of Period
(1)
3,191
3,502
3,120
2,833
2,989
3,191
2,989
ACL - DEBT SECURITIES
Provision for Credit Losses
$
(18)
$
18
$
(12)
$
(5)
$
1
$
(17)
$
5
CHARGE-OFFS
Commercial, Financial and Agricultural
$
217
$
76
$
54
$
164
$
129
$
511
$
1,308
Real Estate - Construction
-
-
-
-
-
-
-
Real Estate - Commercial
-
-
-
120
88
120
355
Real Estate - Residential
79
-
-
-
-
79
-
Real Estate - Home Equity
-
-
39
-
160
39
193
Consumer
1,689
1,340
993
1,732
976
5,754
2,901
Overdrafts
602
659
894
634
720
2,789
3,149
Total Charge-Offs
$
2,587
$
2,075
$
1,980
$
2,650
$
2,073
$
9,292
$
7,906
RECOVERIES
Commercial, Financial and Agricultural
$
83
$
28
$
71
$
95
$
25
$
277
$
307
Real Estate - Construction
-
-
1
1
-
2
10
Real Estate - Commercial
16
17
11
8
13
52
106
Real Estate - Residential
34
30
132
57
98
253
284
Real Estate - Home Equity
17
53
131
25
36
226
183
Consumer
433
418
514
571
175
1,936
1,071
Overdrafts
442
376
633
373
409
1,824
2,010
Total Recoveries
$
1,025
$
922
$
1,493
$
1,130
$
756
$
4,570
$
3,971
NET CHARGE-OFFS (RECOVERIES)
$
1,562
$
1,153
$
487
$
1,520
$
1,317
$
4,722
$
3,935
Net Charge-Offs as a % of Average Loans
HFI
(2)
0.23%
0.17%
0.07%
0.24%
0.21%
0.18%
0.18%
CREDIT QUALITY
Nonaccruing Loans
$
6,242
$
4,694
$
6,623
$
4,589
$
2,297
Other Real Estate Owned
1
1
1
13
431
Total Nonperforming Assets ("NPAs")
$
6,243
$
4,695
$
6,624
$
4,602
$
2,728
Past Due Loans 30-89 Days
$
6,854
$
5,577
$
4,207
$
5,061
$
7,829
Past Due Loans 90 Days or More
-
-
-
-
-
Classified Loans
22,203
21,812
14,973
12,179
19,342
Nonperforming Loans as a % of Loans HFI
0.23%
0.17%
0.25%
0.17%
0.09%
NPAs as a % of Loans HFI and Other Real Estate
0.23%
0.17%
0.25%
0.17%
0.11%
NPAs as a % of
Total Assets
0.15%
0.11%
0.15%
0.10%
0.06%
(1)
Recorded in other liabilities
(2)
Annualized
11
CAPITAL CITY BANK GROUP,
INC.
AVERAGE
BALANCE AND INTEREST RATES
Unaudited
Fourth Quarter 2023
Third Quarter 2023
Second Quarter 2023
First Quarter 2023
Fourth Quarter 2022
Dec 2023 YTD
Dec 2022 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
$
49,790
$
817
6.50
%
$
62,768
$
971
6.14
%
$
54,350
$
800
5.90
%
$
55,110
644
4.74
%
$
42,910
$
582
5.38
%
$
55,510
$
3,232
5.82
%
$
48,502
$
2,175
4.49
%
Loans Held for Investment
(1)
2,711,243
39,679
5.81
2,672,653
38,455
5.71
2,657,693
36,890
5.55
2,582,395
34,342
5.39
2,439,379
31,409
5.11
2,656,394
149,366
5.62
2,189,440
104,578
4.78
Investment Securities
Taxable Investment Securities
962,322
4,389
1.81
1,002,547
4,549
1.80
1,041,202
4,803
1.84
1,061,372
4,911
1.86
1,078,265
4,835
1.78
1,016,550
18,652
1.83
1,098,876
15,917
1.45
Tax-Exempt Investment Securities
(1)
862
7
4.32
2,456
17
2.66
2,656
17
2.47
2,840
18
2.36
2,827
17
2.36
2,199
59
2.68
2,668
54
2.03
Total Investment Securities
963,184
4,396
1.82
1,005,003
4,566
1.81
1,043,858
4,820
1.84
1,064,212
4,929
1.86
1,081,092
4,852
1.78
1,018,749
18,711
1.83
1,101,544
15,971
1.45
Federal Funds Sold and Interest Bearing
Deposits
99,763
1,385
5.51
136,556
1,848
5.37
218,902
2,782
5.10
360,971
4,111
4.62
469,352
4,463
3.77
203,147
10,126
4.98
649,762
9,511
1.46
Total Earning Assets
3,823,980
$
46,277
4.80
%
3,876,980
$
45,840
4.69
%
3,974,803
$
45,292
4.57
%
4,062,688
$
44,026
4.39
%
4,032,733
$
41,306
4.07
%
3,933,800
$
181,435
4.61
%
3,989,248
$
132,235
3.32
%
Cash and Due From Banks
76,681
75,941
75,854
74,639
74,178
75,786
76,929
Allowance for Credit Losses
(29,998)
(29,172)
(27,893)
(25,637)
(22,596)
(28,190)
(21,688)
Other Assets
296,114
295,106
297,837
300,175
297,510
297,290
287,813
Total Assets
$
4,166,777
$
4,218,855
$
4,320,601
$
4,411,865
$
4,381,825
$
4,278,686
$
4,332,302
LIABILITIES:
Noninterest Bearing Deposits
$
1,416,825
$
1,474,574
$
1,539,877
$
1,601,750
$
1,662,443
$
1,507,657
$
1,691,132
NOW Accounts
1,138,461
$
3,696
1.29
%
1,125,171
$
3,489
1.23
%
1,200,400
$
3,038
1.01
%
1,228,928
$
2,152
0.71
%
1,133,733
$
1,725
0.60
%
1,172,861
$
12,375
1.06
%
1,065,838
$
2,799
0.26
%
Money Market Accounts
318,844
1,421
1.77
322,623
1,294
1.59
288,466
747
1.04
267,573
208
0.31
273,328
63
0.09
299,581
3,670
1.22
283,407
203
0.07
Savings Accounts
557,579
202
0.14
579,245
200
0.14
602,848
120
0.08
629,388
76
0.05
641,153
80
0.05
592,033
598
0.10
628,313
309
0.05
Time Deposits
116,797
553
1.88
95,203
231
0.96
87,973
103
0.47
89,675
52
0.24
92,385
34
0.15
97,480
939
0.96
94,646
133
0.14
Total Interest Bearing Deposits
2,131,681
5,872
1.09
2,122,242
5,214
0.97
2,179,687
4,008
0.74
2,215,564
2,488
0.46
2,140,599
1,902
0.35
2,161,955
17,582
0.81
2,072,204
3,444
0.17
Total Deposits
3,548,506
5,872
0.66
3,596,816
5,214
0.58
3,719,564
4,008
0.43
3,817,314
2,488
0.26
3,803,042
1,902
0.20
3,669,611
17,582
0.48
3,763,336
3,444
0.09
Repurchase Agreements
26,831
199
2.94
25,356
190
2.98
17,888
115
2.58
9,343
9
0.37
8,464
7
0.34
19,917
513
2.57
8,095
14
0.17
Other Short-Term Borrowings
16,906
310
7.29
24,306
440
7.17
17,834
336
7.54
37,766
452
4.86
42,380
683
6.39
24,146
1,538
6.37
32,388
1,747
5.40
Subordinated Notes Payable
52,887
627
4.64
52,887
625
4.62
52,887
604
4.52
52,887
571
4.32
52,887
522
3.86
52,887
2,427
4.53
52,887
1,652
3.08
Other Long-Term Borrowings
336
5
4.72
387
4
4.73
431
5
4.80
480
6
4.80
530
8
4.80
408
20
4.77
665
31
4.62
Total Interest Bearing Liabilities
2,228,641
$
7,013
1.25
%
2,225,178
$
6,473
1.15
%
2,268,727
$
5,068
0.90
%
2,316,040
$
3,526
0.62
%
2,244,860
$
3,122
0.55
%
2,259,313
$
22,080
0.98
%
2,166,239
$
6,888
0.32
%
Other Liabilities
78,772
83,099
84,305
81,206
84,585
81,842
85,684
Total Liabilities
3,724,238
3,782,851
3,892,909
3,998,996
3,991,888
3,848,812
3,943,055
Temporary Equity
7,423
8,424
8,935
8,802
9,367
8,392
9,957
SHAREOWNERS' EQUITY:
435,116
427,580
418,757
404,067
380,570
421,482
379,290
Total Liabilities, Temporary
Equity and
Shareowners' Equity
$
4,166,777
$
4,218,855
$
4,320,601
$
4,411,865
$
4,381,825
$
4,278,686
$
4,332,302
Interest Rate Spread
$
39,264
3.55
%
$
39,367
3.54
%
$
40,224
3.67
%
$
40,500
3.77
%
$
38,184
3.52
%
$
159,355
3.63
%
$
125,347
3.00
%
Interest Income and Rate Earned
(1)
46,277
4.80
45,840
4.69
45,292
4.57
44,026
4.39
41,306
4.07
181,435
4.61
132,235
3.32
Interest Expense and Rate Paid
(2)
7,013
0.73
6,473
0.66
5,068
0.51
3,526
0.35
3,122
0.31
22,080
0.56
6,888
0.17
Net Interest Margin
$
39,264
4.07
%
$
39,367
4.03
%
$
40,224
4.06
%
$
40,500
4.04
%
$
38,184
3.76
%
$
159,355
4.05
%
$
125,347
3.14
%
(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.