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):
April 25, 2022
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 April 25, 2022, Capital City Bank Group, Inc. (“CCBG”) issued an earnings press release
reporting CCBG’s financial
results for the three month period ended March 31, 2022.
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 Exhibit 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 April 25, 2022.
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:
April 25, 2022
By:
/s/ J.Kimbrough Davis
J. Kimbrough Davis,
Executive Vice President
and Chief Financial Officer
EXHIBIT INDEX
Exhibit
Number
Description
99.1
Press Release dated April 25, 2022
ex991
Capital City Bank Group, Inc.
Reports First Quarter 2022 Results
TALLAHASSEE, Fla.
(April 25, 2022) – Capital City Bank Group, Inc. (NASDAQ: CCBG)
today reported net income attributable
to common shareowners of $8.5 million, or $0.50 per diluted share,
for the first quarter of 2022 compared to net income of $6.4
million, or $0.38 per diluted share, for the fourth quarter of 2021, and $9.5 million,
or $0.56 per diluted share, for the first quarter of
2021.
First Quarter 2022
HIGHLIGHTS
●
Period-end loan balances grew $54
million, or 2.8% sequentially
●
Net interest income gained momentum driven
by growth in investment portfolio and higher rates
●
Noninterest income increased
by 4.6% sequentially, driven
by wealth management fees (insurance commission revenues)
●
Noninterest expense decreased
$1.0 million, or 2.4% sequentially, attributable
to lower pension plan expense
●
Continued strong credit
quality resulted in no credit
loss provision
“We begin
2022 with a quarter of solid financial performance,” said William
G. Smith, Jr., Chairman,
President and CEO of Capital
City Bank Group.
“Loan growth, credit quality,
rising rates, wealth management and lower expenses all contributed to this quarter’s
strong performance.
Much has changed in a short period of time – rapidly escalating inflation,
a pivot by the Federal Reserve
toward a quicker tightening of monetary policy and the Russia-Ukraine
war, along with the accompanying sanctions and
questions
around how the financial markets will respond to these macro-economic
events. While much of this is out of our control, we believe
we are well positioned
to navigate through this year and beyond.
While acknowledging higher rates will generate unrealized losses
in our investment portfolio, our asset-sensitive balance sheet and pension
related other comprehensive loss should respond well to
rising rates.
Capital City Strategic Wealth
(“CCSW”) also had a strong first quarter and we continue our expansion efforts
in west
Florida and the northern arc of Atlanta.
While challenges remain, we continue to focus on identifying opportunities and executing
strategies we believe are sustainable and add long-term value for our
shareowners.”
Discussion of Operating Results
Net Interest Income/Net Interest
Margin
Tax-equivalent net
interest income for the first quarter of 2022 totaled $24.8
million, comparable to the fourth quarter of 2021, and
$24.6 million for the first quarter of 2021.
Compared to the fourth quarter of 2021, higher rates on overnight funds and growth
in the
investment portfolio was offset by two less calendar days during
the quarter.
Compared to the first quarter of 2021, the increase was
due to growth in our investment portfolio which was funded by higher
deposit balances.
Our net interest margin for the first quarter of 2022 was 2.55%, a decrease
of five basis points from the fourth quarter of 2021 and a
decrease of 30 basis points from the first quarter of 2021.
Compared to both prior periods, the decrease was primarily attributable to
growth in earning assets (driven by deposit inflows), which negatively
impacted our margin percentage. Our net interest margin
for
the first quarter of 2022, excluding the impact of overnight
funds in excess of $200 million, was 3.11%.
Provision for Credit Loss
We did not
record a provision for credit losses for the first quarter of 2022 or the fourth quarter
of 2021 and recorded a negative
provision of $1.0 million for the first quarter of 2021.
The lack of provision for the first quarter of 2022 reflected continued strong
credit quality and slight improvement in the forecasted level of unemployment.
We discuss the allowance
for credit losses further
below.
Noninterest Income and Noninterest
Expense
Noninterest income for the first quarter of 2022 totaled $25.8 million compared
to $24.7 million for the fourth quarter of 2021 and
$29.8 million for the first quarter of 2021.
The increase over the fourth quarter of 2021 was primarily attributable to higher wealth
management fees of $2.1 million that were partially offset by
lower mortgage banking revenues of $0.9 million.
The increase in
wealth management fees was attributable to higher insurance commission
revenues. Lower loan production and a slightly lower
gain on sale margin drove the decline in mortgage banking
revenues. Compared to the first quarter of 2021, the decline was due to
lower mortgage banking revenues attributable to lower loan production
(primarily refinancing activity) and a lower gain on sale
margin.
Additional detail on our mortgage banking operation (CCHL) is provided
on Page 11.
2
Noninterest expense for the first quarter of 2022
totaled $39.2 million compared to $40.2 million for the fourth quarter of
2021 and
$40.5 million for the first quarter of 2021.
The decrease from the fourth quarter of 2021 was primarily attributable to lower
pension
expense of $1.6 million (reflected in other expense) offset
by higher commission expense of $0.7 million related to higher insurance
revenues.
The decrease in pension expense generally reflected a higher discount rate in 2022
for determining plan liabilities and
strong asset returns in 2021.
Compared to the first quarter of 2021, the decrease was attributable to
lower commission expense of
$2.6 million related to lower mortgage banking revenues offset by
higher associate benefits of $0.5
million and a decrease in
realized loan cost of $0.8 million (credit offset to salary expense).
Income Taxes
We realized income
tax expense of $2.2
million (effective rate of 20%) for the first quarter of 2022 compared
to $2.0 million
(effective rate of 22%) for the fourth quarter of 2021
and $2.8 million (effective rate of 19%) for the first quarter of 2021.
Tax
expense for the fourth quarter of 2021 was unfavorably impacted by discrete tax
expense of $0.1 million. Absent discrete items, we
expect our annual effective tax rate to approximate 19%-20% in
2022.
Discussion of Financial Condition
Earning Assets
Average earning
assets totaled $3.939 billion for the first quarter of 2022, an increase of $147.5 million, or
3.9%, over the fourth
quarter of 2021, and an increase of $440.9 million, or 12.6%, over
the first quarter of 2021.
The increase over the fourth quarter of
2021 was primarily attributable to seasonal growth in our public fund deposits. The
increase compared to the first quarter of 2021
was primarily driven by higher deposit balances (see below
– Funding).
We maintained
an average net overnight funds (deposits with banks plus FED funds sold
less FED funds purchased) sold position of
$873.1 million in the first quarter of 2022 compared to $789.1 million in
the fourth quarter of 2021 and $814.6 million in the first
quarter of 2021.
The growth compared to the fourth quarter of 2021 primarily reflect
ed higher seasonal public fund balances. The
increase compared to the first quarter of 2021 reflected higher deposit
balance (see below –
Funding
).
Average loans
held for investment (“HFI”) increased $15.3 million, or 0.8%, over the fourth quarter
of 2021 and decreased $80.8
million, or 4.0%, from the first quarter of 2021. Excluding SBA PPP loans, average
loans HFI increased $18.8 million compared to
the fourth quarter of 2021, and increased $115.9
million compared to the first quarter of 2021.
Compared to the fourth quarter of
2021,
the increase in average loans (excluding SBA PPP loans) reflected growth in
commercial loans (primarily institutional),
residential loans, HELOCs, and consumer loans (indirect auto). Compared
to the first quarter of 2021, we realized growth in
commercial loans, construction loans,
residential mortgages, and consumer loans (indirect auto).
New loan production strengthened
in the latter part of the first quarter of 2022 resulting in period end
loan growth of $54 million over the fourth quarter of 2021.
Increases were realized in most loan categories with the largest growth
in commercial loans (primarily institutional) and consumer
loans (indirect auto).
Allowance for Credit Losses
At March 31, 2022, the allowance for credit losses for HFI loans totaled
$20.8 million compared to $21.6 million at December 31,
2021 and $22.0 million at March 31, 2021.
Activity within the allowance is provided on Page 9.
At March 31, 2022, the allowance
represented 1.05% of HFI loans and provided coverage of 761% of
nonperforming loans compared to 1.12% and 500%,
respectively, at December
31, 2021, and 1.07% and 411%, respectively,
at March 31, 2021.
Credit Quality
Overall credit quality is strong and continues to improve.
Nonperforming assets (nonaccrual loans and other real estate) totaled $2.7
million at March 31, 2022 compared to $4.3 million at December 31, 2021
and $5.5 million at March 31, 2021.
At March 31, 2022,
nonperforming assets as a percentage of total assets totaled 0.06% compared
to 0.10% at December 31, 2021 and 0.14% at March
31, 2021.
Nonaccrual loans totaled $2.7 million at March 31, 2022, a $1.7 million decrease
from December 31, 2021 and a $2.7
million decrease from March 31, 2021.
The $4.4 million increase in classified loans over the fourth quarter of 2021, reflects one
loan relationship that is in the loan workout process and has been reserved for
at March 31, 2022.
3
Funding (Deposits/Debt)
Average total
deposits were $3.714 billion for the first quarter of 2022, an increase of $164.9
million, or 4.6%, over the fourth
quarter of 2021 and $474.6 million, or 14.6%, over the first quarter of
2021.
Growth over the fourth quarter of 2021 was primarily
attributable to an increase in seasonal public fund deposits. Compared to
the first quarter 2021, strong growth occurred in our
noninterest bearing deposits, NOW accounts, and savings account
balances.
Over the past few years,
we have experienced strong
core deposit growth, in addition to growth related to multiple
government stimulus programs in response to the Covid-19 pandemic
,
such as those under the CARES Act and the American Rescue Plan Act.
Given these increases,
the potential exists for our deposit
levels to be volatile into 2022 due to the uncertain timing of the outflows
of the stimulus related balances,
in addition to the
frequency and degree to which the Federal Open Market Committee (FOMC) raises the
overnight funds rate. It is anticipated that
current liquidity levels will remain robust due to our strong overnight
funds sold position.
The Bank continues to strategically
consider ways to safely deploy a portion of this liquidity.
Average borrowings
decreased $14.6 million from the fourth quarter of 2021
and declined $36.6 million from the first quarter of
2021, as both periods reflected lower warehouse line borrowing
needs to support CCHL’s
loans held for sale.
Capital
Shareowners’ equity was $372.1 million at March 31, 2022 compared
to $383.2 million at December 31, 2021 and $324.4 million at
March 31, 2021.
During the first quarter of 2022, shareowners’ equity was positively impacted by net
income of $8.5 million, a
$0.2 million decrease in the accumulated other comprehensive loss for
our pension plan, a $1.4 million increase in the fair value of
the interest rate swap related to subordinated debt, net adjustments totaling
$0.5 million related to transactions under our stock
compensation plans,
and stock compensation accretion of $0.2 million.
Shareowners’ equity was reduced by common stock
dividends
of $2.7 million ($0.16 per share) and a $19.1 million increase in the unrealized loss on investment
securities.
At March 31, 2022, our total risk-based capital ratio was 16.98% compared
to 17.15% at December 31, 2021 and 17.20% at March
31, 2021.
Our common equity tier 1 capital ratio was 13.77%, 13.86%, and 13.63%, respectively,
on these dates.
Our leverage ratio
was 8.78%, 8.95%, and 8.97%, respectively,
on these dates.
All of our regulatory capital ratios exceeded the threshold to be
designated as “well-capitalized” under the Basel III capital standards.
Further, our tangible common equity ratio was 6.61% at
March 31, 2022 compared to 6.95% and 6.13% at December 31, 2021
and March 31, 2021, respectively.
The slight reduction in our
regulatory capital ratios was attributable to loan growth and higher asset levels.
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 effect
s
of security breaches and computer viruses that may affect
our computer
systems or fraud related to debit card products; changes in consumer
spending and savings habits; our growth and profitability; the
strength of the U.S. economy and the local economies where we conduct operations;
the effects of a non-diversified loan portfolio,
including the risks of geographic and industry concentrations; natural disasters, widespread
health emergencies, military conflict,
terrorism or other geopolitical events; changes in the stock market and
other capital and real estate markets; the magnitude and
duration of the ongoing COVID-19 pandemic and its impact on the global
economy and financial market conditions and our
business; customer acceptance of third-party products and services; increased
competition and its effect on pricing; negative
publicity and the impact on our reputation; technological changes,
especially changes that allow out of market competitors to
compete in our markets; changes in accounting; and our ability to manage
the risks involved in the foregoing.
Additional factors can
be found in our Annual Report on Form 10-K for the fiscal year ended December
31, 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.
4
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)
Mar 31, 2022
Dec 31, 2021
Sep 30, 2021
Jun 30, 2021
Mar 31, 2021
Shareowners' Equity (GAAP)
$
372,145
$
383,166
$
348,868
$
335,880
$
324,426
Less: Goodwill and Other Intangibles (GAAP)
93,213
93,253
93,293
93,333
89,095
Tangible Shareowners' Equity (non-GAAP)
A
278,932
289,913
255,575
242,547
235,331
Total Assets (GAAP)
4,310,045
4,263,849
4,048,733
4,011,459
3,929,884
Less: Goodwill and Other Intangibles (GAAP)
93,213
93,253
93,293
93,333
89,095
Tangible Assets (non-GAAP)
B
$
4,216,832
$
4,170,596
$
3,955,440
$
3,918,126
$
3,840,789
Tangible Common Equity Ratio (non-GAAP)
A/B
6.61%
6.95%
6.46%
6.19%
6.13%
Actual Diluted Shares Outstanding (GAAP)
C
16,962,362
16,935,389
16,911,715
16,901,375
16,875,719
Tangible
Book Value per Diluted Share (non-GAAP)
A/C
$
16.44
$
17.12
$
15.11
$
14.35
$
13.94
5
CAPITAL CITY BANK
GROUP,
INC.
EARNINGS HIGHLIGHTS
Unaudited
Three Months Ended
(Dollars in thousands, except per share data)
Mar 31, 2022
Dec 31, 2021
Mar 31, 2021
EARNINGS
Net Income Attributable to Common Shareowners
$
8,455
$
6,372
$
9,506
Diluted Net Income Per Share
$
0.50
$
0.38
$
0.56
PERFORMANCE
Return on Average Assets
0.80
%
0.61
%
1.01
%
Return on Average Equity
8.93
7.22
11.81
Net Interest Margin
2.55
2.60
2.85
Noninterest Income as % of Operating Revenue
51.11
49.96
54.90
Efficiency Ratio
77.55
%
81.29
%
74.36
%
CAPITAL ADEQUACY
Tier 1 Capital
15.98
%
16.14
%
16.08
%
Total Capital
16.98
17.15
17.20
Leverage
8.78
8.95
8.97
Common Equity Tier 1
13.77
13.86
13.63
Tangible Common Equity
(1)
6.61
6.95
6.13
Equity to Assets
8.63
%
8.99
%
8.26
%
ASSET QUALITY
Allowance as % of Non-Performing Loans
760.83
%
499.93
%
410.78
%
Allowance as a % of Loans HFI
1.05
1.12
1.07
Net Charge-Offs as % of Average Loans HFI
0.16
0.02
(0.10)
Nonperforming Assets as % of Loans HFI and OREO
0.14
0.22
0.27
Nonperforming Assets as % of Total Assets
0.06
%
0.10
%
0.14
%
STOCK PERFORMANCE
High
$
28.88
$
29.00
$
28.98
Low
25.96
24.77
21.42
Close
$
26.36
$
26.40
$
26.02
Average Daily Trading Volume
24,019
29,900
30,303
(1)
Tangible common equity ratio is a non-GAAP financial measure.
For additional information, including a reconciliation to GAAP, refer to Page 4.
6
CAPITAL CITY BANK GROUP, INC.
CONSOLIDATED STATEMENT
OF FINANCIAL CONDITION
Unaudited
2022
2021
(Dollars in thousands)
First Quarter
Fourth Quarter
Third Quarter
Second Quarter
First Quarter
ASSETS
Cash and Due From Banks
$
77,963
$
65,313
$
73,132
$
78,894
$
73,973
Funds Sold and Interest Bearing Deposits
790,465
970,041
708,988
766,920
851,910
Total Cash and Cash Equivalents
868,428
1,035,354
782,120
845,814
925,883
Investment Securities Available for Sale
624,361
654,611
645,844
480,890
406,245
Investment Securities Held to Maturity
518,678
339,601
341,228
325,559
199,109
Other Equity Securities
855
861
-
-
-
Total Investment Securities
1,143,894
995,073
987,072
806,449
605,354
Loans Held for Sale
50,815
52,532
77,036
80,821
82,081
Loans Held for Investment ("HFI"):
Commercial, Financial, & Agricultural
230,213
223,086
218,929
292,953
413,819
Real Estate - Construction
174,293
174,394
177,443
149,884
138,104
Real Estate - Commercial
669,110
663,550
683,379
707,599
669,158
Real Estate - Residential
368,020
346,756
355,958
362,018
358,849
Real Estate - Home Equity
188,174
187,821
187,642
190,078
202,099
Consumer
347,785
321,511
309,983
298,464
267,666
Other Loans
6,692
13,265
6,792
6,439
7,082
Overdrafts
1,222
1,082
1,299
1,227
950
Total Loans Held for Investment
1,985,509
1,931,465
1,941,425
2,008,662
2,057,727
Allowance for Credit Losses
(20,756)
(21,606)
(21,500)
(22,175)
(22,026)
Loans Held for Investment, Net
1,964,753
1,909,859
1,919,925
1,986,487
2,035,701
Premises and Equipment, Net
82,518
83,412
84,750
85,745
86,370
Goodwill and Other Intangibles
93,213
93,253
93,293
93,333
89,095
Other Real Estate Owned
17
17
192
1,192
110
Other Assets
106,407
94,349
104,345
111,618
105,290
Total Other Assets
282,155
271,031
282,580
291,888
280,865
Total Assets
$
4,310,045
$
4,263,849
$
4,048,733
$
4,011,459
$
3,929,884
LIABILITIES
Deposits:
Noninterest Bearing Deposits
$
1,704,329
$
1,668,912
$
1,592,345
$
1,552,864
$
1,473,891
NOW Accounts
1,062,498
1,070,154
926,201
970,705
993,571
Money Market Accounts
288,877
274,611
286,065
280,805
269,041
Regular Savings Accounts
614,599
599,811
559,714
539,477
518,373
Certificates of Deposit
95,204
99,374
101,637
103,070
103,232
Total Deposits
3,765,507
3,712,862
3,465,962
3,446,921
3,358,108
Short-Term Borrowings
30,865
34,557
51,410
47,200
55,687
Subordinated Notes Payable
52,887
52,887
52,887
52,887
52,887
Other Long-Term Borrowings
806
884
1,610
1,720
1,829
Other Liabilities
77,323
67,735
113,720
105,534
109,487
Total Liabilities
3,927,388
3,868,925
3,685,589
3,654,262
3,577,998
Temporary Equity
10,512
11,758
14,276
21,317
27,460
SHAREOWNERS' EQUITY
Common Stock
169
169
169
169
169
Additional Paid-In Capital
35,188
34,423
33,876
33,560
32,804
Retained Earnings
370,531
364,788
359,550
345,574
335,324
Accumulated Other Comprehensive Loss, Net of Tax
(33,743)
(16,214)
(44,727)
(43,423)
(43,871)
Total Shareowners' Equity
372,145
383,166
348,868
335,880
324,426
Total Liabilities, Temporary Equity and Shareowners' Equity
$
4,310,045
$
4,263,849
$
4,048,733
$
4,011,459
$
3,929,884
OTHER BALANCE SHEET DATA
Earning Assets
$
3,970,684
$
3,949,111
$
3,714,521
$
3,662,852
$
3,597,071
Interest Bearing Liabilities
2,145,736
2,132,278
1,979,524
1,995,864
1,994,620
Book Value Per Diluted Share
$
21.94
$
22.63
$
20.63
$
19.87
$
19.22
Tangible Book Value
Per Diluted Share
(1)
16.44
17.12
15.11
14.35
13.94
Actual Basic Shares Outstanding
16,948
16,892
16,878
16,874
16,852
Actual Diluted Shares Outstanding
16,962
16,935
16,912
16,901
16,876
(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.
7
CAPITAL CITY BANK
GROUP,
INC.
CONSOLIDATED STATEMENT
OF OPERATIONS
Unaudited
2022
2021
(Dollars in thousands, except per share data)
First
Quarter
Fourth
Quarter
Third
Quarter
Second
Quarter
First
Quarter
INTEREST INCOME
Loans, including Fees
$
22,133
$
22,744
$
25,885
$
24,582
$
23,350
Investment Securities
2,896
2,505
2,350
2,054
1,883
Federal Funds Sold and Interest Bearing Deposits
409
300
285
200
213
Total Interest Income
25,438
25,549
28,520
26,836
25,446
INTEREST EXPENSE
Deposits
224
213
210
208
208
Short-Term Borrowings
192
307
317
324
412
Subordinated Notes Payable
317
306
307
308
307
Other Long-Term Borrowings
9
12
14
16
21
Total Interest Expense
742
838
848
856
948
Net Interest Income
24,696
24,711
27,672
25,980
24,498
Provision for Credit Losses
-
-
-
(571)
(982)
Net Interest Income after Provision for Credit Losses
24,696
24,711
27,672
26,551
25,480
NONINTEREST INCOME
Deposit Fees
5,191
5,300
5,075
4,236
4,271
Bank Card Fees
3,763
3,872
3,786
3,998
3,618
Wealth Management Fees
6,070
3,706
3,623
3,274
3,090
Mortgage Banking Revenues
8,946
9,800
12,283
13,217
17,125
Other
1,848
1,994
1,807
1,748
1,722
Total Noninterest Income
25,818
24,672
26,574
26,473
29,826
NONINTEREST EXPENSE
Compensation
24,856
24,783
25,245
25,378
26,064
Occupancy, Net
6,093
5,960
6,032
5,973
5,967
Other Real Estate, Net
25
26
(1,126)
(270)
(118)
Pension Settlement
209
572
500
2,000
-
Other
8,050
8,866
9,051
9,042
8,563
Total Noninterest Expense
39,233
40,207
39,702
42,123
40,476
OPERATING PROFIT
11,281
9,176
14,544
10,901
14,830
Income Tax Expense
2,235
2,040
2,949
2,059
2,787
Net Income
9,046
7,136
11,595
8,842
12,043
Pre-Tax Income Attributable to Noncontrolling Interest
(591)
(764)
(1,504)
(1,415)
(2,537)
NET INCOME ATTRIBUTABLE
TO
COMMON SHAREOWNERS
$
8,455
$
6,372
$
10,091
$
7,427
$
9,506
PER COMMON SHARE
Basic Net Income
$
0.50
$
0.38
$
0.60
$
0.44
$
0.56
Diluted Net Income
0.50
0.38
0.60
0.44
0.56
Cash Dividend
$
0.16
$
0.16
$
0.16
$
0.15
$
0.15
AVERAGE
SHARES
Basic
16,931
16,880
16,875
16,858
16,838
Diluted
16,946
16,923
16,909
16,885
16,862
8
CAPITAL CITY BANK GROUP,
INC.
ALLOWANCE FOR CREDIT LOSSES ("ACL")
AND CREDIT QUALITY
Unaudited
2022
2021
(Dollars in thousands, except per share data)
First
Quarter
Fourth
Quarter
Third
Quarter
Second
Quarter
First
Quarter
ACL - HELD FOR INVESTMENT LOANS
Balance at Beginning of Period
$
21,606
$
21,500
$
22,175
$
22,026
$
23,816
Provision for Credit Losses
(79)
200
(546)
(184)
(2,312)
Net Charge-Offs (Recoveries)
771
94
129
(333)
(522)
Balance at End of Period
$
20,756
$
21,606
$
21,500
$
22,175
$
22,026
As a % of Loans HFI
1.05%
1.12%
1.11%
1.10%
1.07%
As a % of Nonperforming Loans
760.83%
499.93%
710.39%
433.93%
410.78%
ACL - DEBT SECURITIES
Provision for Credit Losses
$
-
$
20
$
16
$
-
$
-
ACL - UNFUNDED COMMITMENTS
Balance at Beginning of Period
2,897
$
3,117
$
2,587
$
2,974
$
1,644
Provision for Credit Losses
79
(220)
530
(387)
1,330
Balance at End of Period
(1)
2,976
2,897
3,117
2,587
2,974
CHARGE-OFFS
Commercial, Financial and Agricultural
$
73
$
101
$
37
$
32
$
69
Real Estate - Construction
-
-
-
-
-
Real Estate - Commercial
266
-
405
-
-
Real Estate - Residential
-
20
17
65
6
Real Estate - Home Equity
33
9
15
74
5
Consumer
622
254
221
230
564
Overdrafts
780
678
1,093
440
492
Total Charge-Offs
$
1,774
$
1,062
$
1,788
$
841
$
1,136
RECOVERIES
Commercial, Financial and Agricultural
$
165
$
148
$
66
$
103
$
136
Real Estate - Construction
8
-
10
-
-
Real Estate - Commercial
29
25
169
26
645
Real Estate - Residential
27
33
401
244
75
Real Estate - Home Equity
58
173
46
70
124
Consumer
183
214
334
332
311
Overdrafts
533
375
633
399
367
Total Recoveries
$
1,003
$
968
$
1,659
$
1,174
$
1,658
NET CHARGE-OFFS (RECOVERIES)
$
771
$
94
$
129
$
(333)
$
(522)
Net Charge-Offs as a % of Average Loans
HFI
(2)
0.16%
0.02%
0.03%
(0.07)%
(0.10)%
CREDIT QUALITY
Nonaccruing Loans
$
2,728
$
4,322
$
3,026
$
5,110
$
5,362
Other Real Estate Owned
17
17
192
1,192
110
Total Nonperforming Assets ("NPAs")
$
2,745
$
4,339
$
3,218
$
6,302
$
5,472
Past Due Loans 30-89 Days
$
3,120
$
3,600
$
3,360
$
3,745
$
2,622
Past Due Loans 90 Days or More
74
-
-
-
-
Classified Loans
22,348
17,912
16,310
19,397
20,608
Performing Troubled Debt Restructurings
$
7,304
$
7,643
$
7,919
$
8,992
$
13,597
Nonperforming Loans as a % of Loans HFI
0.14%
0.22%
0.16%
0.25%
0.26%
NPAs as a % of Loans HFI and Other Real Estate
0.14%
0.22%
0.17%
0.31%
0.27%
NPAs as a % of
Total Assets
0.06%
0.10%
0.08%
0.16%
0.14%
(1)
Recorded in other liabilities
(2)
Annualized
9
CAPITAL CITY BANK GROUP,
INC.
AVERAGE
BALANCE AND INTEREST RATES
Unaudited
First Quarter 2022
Fourth Quarter 2021
Third Quarter 2021
Second Quarter 2021
First Quarter 2021
(Dollars in thousands)
Average
Balance
Interest
Average
Rate
Average
Balance
Interest
Average
Rate
Average
Balance
Interest
Average
Rate
Average
Balance
Interest
Average
Rate
Average
Balance
Interest
Average
Rate
ASSETS:
Loans Held for Sale
$
43,004
$
397
3.75
%
$
62,809
$
522
3.29
%
$
67,753
$
497
2.91
%
$
77,101
566
2.94
%
$
106,242
$
970
3.70
%
Loans Held for Investment
(1)
1,963,578
21,811
4.50
1,948,324
22,296
4.54
1,974,132
25,458
5.12
2,036,781
24,095
4.74
2,044,363
22,483
4.46
Investment Securities
Taxable Investment Securities
1,056,736
2,889
1.10
987,700
2,493
1.00
904,962
2,333
1.03
687,882
2,036
1.18
528,842
1,863
1.41
Tax-Exempt Investment Securities
(1)
2,409
10
1.60
3,380
17
2.07
4,332
25
2.31
3,530
23
2.58
3,844
25
2.61
Total Investment Securities
1,059,145
2,899
1.10
991,080
2,510
1.01
909,294
2,358
1.03
691,412
2,059
1.19
532,686
1,888
1.42
Federal Funds Sold and Interest Bearing
873,097
409
0.19
789,100
300
0.15
741,944
285
0.15
818,616
200
0.10
814,638
213
0.11
Total Earning Assets
3,938,824
$
25,516
2.63
%
3,791,313
$
25,628
2.68
%
3,693,123
$
28,598
3.07
%
3,623,910
$
26,920
2.98
%
3,497,929
$
25,554
2.96
%
Cash and Due From Banks
74,253
73,752
72,773
74,076
68,978
Allowance for Loan Losses
(21,655)
(22,127)
(22,817)
(22,794)
(24,128)
Other Assets
275,353
284,999
283,534
281,157
278,742
Total Assets
$
4,266,775
$
4,127,937
$
4,026,613
$
3,956,349
$
3,821,521
LIABILITIES:
Interest Bearing Deposits
NOW Accounts
$
1,079,906
$
86
0.03
%
$
963,778
$
72
0.03
%
$
945,788
$
72
0.03
%
$
966,649
$
74
0.03
%
$
985,517
$
76
0.03
%
Money Market Accounts
285,406
33
0.05
289,335
34
0.05
282,860
34
0.05
272,138
33
0.05
269,829
33
0.05
Savings Accounts
599,359
72
0.05
573,563
71
0.05
551,383
68
0.05
529,844
64
0.05
492,252
60
0.05
Time Deposits
97,054
33
0.14
101,037
36
0.14
102,765
36
0.14
102,995
37
0.15
102,089
39
0.15
Total Interest Bearing Deposits
2,061,725
224
0.04
%
1,927,713
213
0.04
%
1,882,796
210
0.04
%
1,871,626
208
0.04
%
1,849,687
208
0.05
%
Short-Term Borrowings
32,353
192
2.40
%
46,355
307
2.63
%
49,773
317
2.53
%
51,152
324
2.54
%
67,033
412
2.49
%
Subordinated Notes Payable
52,887
317
2.40
52,887
306
2.26
52,887
307
2.27
52,887
308
2.30
52,887
307
2.32
Other Long-Term Borrowings
833
9
4.49
1,414
12
3.50
1,652
14
3.37
1,762
16
3.38
2,736
21
3.18
Total Interest Bearing Liabilities
2,147,798
$
742
0.14
%
2,028,369
$
838
0.16
%
1,987,108
$
848
0.17
%
1,977,427
$
856
0.17
%
1,972,343
$
948
0.19
%
Noninterest Bearing Deposits
1,652,337
1,621,432
1,564,892
1,515,726
1,389,821
Other Liabilities
72,166
114,657
112,707
107,801
111,050
Total Liabilities
3,872,301
3,764,458
3,664,707
3,600,954
3,473,214
Temporary Equity
10,518
13,339
20,446
26,355
21,977
SHAREOWNERS' EQUITY:
383,956
350,140
341,460
329,040
326,330
Total Liabilities, Temporary
Equity and
Shareowners' Equity
$
4,266,775
$
4,127,937
$
4,026,613
$
3,956,349
$
3,821,521
Interest Rate Spread
$
24,774
2.49
%
$
24,790
2.52
%
$
27,750
2.91
%
$
26,064
2.81
%
$
24,606
2.77
%
Interest Income and Rate Earned
(1)
25,516
2.63
25,628
2.68
28,598
3.07
26,920
2.98
25,554
2.96
Interest Expense and Rate Paid
(2)
742
0.08
838
0.09
848
0.09
856
0.09
948
0.11
Net Interest Margin
$
24,774
2.55
%
$
24,790
2.60
%
$
27,750
2.98
%
$
26,064
2.89
%
$
24,606
2.85
%
(1)
Interest and average rates are
calculated on a tax-equivalent basis using a 21% Federal tax rate.
(2)
Rate calculated based on average earning assets.
10
CAPITAL CITY HOME LOANS
MORTGAGE BANKING ACTIVITY
Unaudited
Three Months Ended
(Dollars in thousands)
Mar 31, 2022
Dec 31, 2021
Mar 31, 2021
Net Interest Income
$
75
$
35
$
(153)
Mortgage Banking Fees
8,947
9,800
16,846
Other
467
470
426
Total Noninterest
Income
9,414
10,270
17,272
Salaries
6,024
6,643
10,276
Other Associate Benefits
181
202
221
Total Compensation
6,205
6,845
10,497
Occupancy, Net
885
743
861
Other
1,313
1,312
1,101
Total Noninterest
Expense
8,403
8,900
12,459
Operating Profit
$
1,086
$
1,405
$
4,660
Key Performance Metrics
Total Loans Closed
$
246,887
$
294,237
$
463,126
Total Loans Closed -
Mix
Purchase
79%
76%
60%
Refinance
21%
24%
40%