TALLAHASSEE, Fla., April 22, 2024 (GLOBE NEWSWIRE) -- Capital City Bank Group, Inc. (NASDAQ: CCBG) today reported net income attributable to common shareowners of $12.6 million, or $0.74 per diluted share, for the first quarter of 2024 compared to $11.7 million, or $0.70 per diluted share, for the fourth quarter of 2023, and $13.7 million, or $0.80 per diluted share, for the first quarter of 2023.
QUARTER HIGHLIGHTS (1st Quarter 2024 versus 4th Quarter 2023)
Income Statement
- Tax-equivalent net interest income totaled $38.4 million compared to $39.3 million for the prior quarter reflective of one less calendar day and higher deposit cost - total deposit cost increased 19 basis points to 85 basis points - net interest margin decreased six basis points to 4.01%
- Stable credit quality metrics and lower loan growth drove a $1.1 million reduction in credit loss provision - net loan charge-offs were 22 basis points (annualized) of average loans - allowance coverage ratio of 1.07%
- Noninterest income increased $0.9 million, or 5.5%, due to higher mortgage banking revenues and wealth management fees
- Noninterest expense was well controlled with a $0.2 million, or 0.5%, increase for the quarter
Balance Sheet
- Loan balances grew $17.4 million, or 0.6% (average), and declined $2.7 million, or 0.1% (end of period)
- Deposit balances increased by $28.0 million, or 0.8% (average), and decreased $47.0 million, or 1.3% (end of period)
- Tangible book value per diluted share (non-GAAP financial measure) increased $0.52, or 2.5% - accumulated other comprehensive loss remained stable
- Repurchased 82,540 shares of common stock
"Overall, we are pleased with the first quarter as we realized solid earnings and capital growth," said William G. Smith, Jr., Chairman, President, CEO of Capital City Bank Group. "Credit quality remained stable, average deposits grew, and the dividend increased 5 percent. While the operating environment remains challenging, we believe we are well positioned and have strategies in place to achieve a solid year of performance."
Discussion of Operating Results
Net Interest Income/Net Interest Margin
Tax-equivalent net interest income for the first quarter of 2024 totaled $38.4 million, compared to $39.3 million for the fourth quarter of 2023, and $40.5 million for the first quarter of 2023. Compared to both prior periods, the decline was primarily attributable to an increase in deposit interest expense, partially offset by higher loan interest income. The increase in deposit interest expense was primarily attributable to higher average money market balances and to a lesser extent certificates of deposit ("CD") balances and reflected a combination of re-mix from other deposit categories and higher rates for these products. The increase in loan interest income reflected existing loans re-pricing at higher rates and new loan volume at higher rates. Further, the first quarter of 2024 had one less calendar day compared to the fourth quarter of 2023 and one additional calendar day compared to the first quarter of 2023.
Our net interest margin for the first quarter of 2024 was 4.01%, a decrease of six basis points from the fourth quarter of 2023 and a decrease of three basis points from the first quarter of 2023. The decrease compared to both prior periods primarily reflected higher deposit cost related to re-mix within the deposit base and higher rates paid on deposits, partially offset by higher yields from new loan volume and loan repricing at higher rates. For the first quarter of 2024, our cost of funds was 88 basis points, an increase of 15 basis points over the fourth quarter of 2023 and an increase of 53 basis points over the first quarter of 2023. Our cost of deposits (including noninterest bearing accounts) was 85 basis points, 66 basis points, and 26 basis points, respectively, for the same periods.
Provision for Credit Losses
We recorded a provision for credit losses of $0.9 million for the first quarter of 2024 compared to $2.0 million for the fourth quarter of 2023 and $3.1 million for the first quarter of 2023. The decrease in the provision compared to both prior periods was primarily attributable to a lower level of reserves required for new loans, favorable loan grade migration, and lower loss rates. We discuss the allowance for credit losses further below.
Noninterest Income and Noninterest Expense
Noninterest income for the first quarter of 2024 totaled $18.1 million compared to $17.2 million for the fourth quarter of 2023 and $17.8 million for the first quarter of 2023. The $0.9 million increase over the fourth quarter of 2023 was due to a $0.5 million increase in mortgage banking revenues and a $0.4 million increase in wealth management fees. Compared to the first quarter of 2023, the $0.3 million increase was primarily attributable to higher wealth management fees of $0.7 million partially offset by lower other income of $0.3 million. For both prior period comparisons, the increase in mortgage banking revenues reflected a higher volume of rate locks and third-party loan sales. A combination of higher trust fees, retail brokerage fees, and insurance commissions drove the increase in wealth management fees over the fourth quarter of 2023. Higher retail brokerage fees of $0.4 million and trust fees of $0.2 million drove the increase over the first quarter of 2023. The decrease in other income was primarily due to lower loan servicing income and miscellaneous income.
Noninterest expense for the first quarter of 2024 totaled $40.2 million compared to $40.0 million for the fourth quarter of 2023 and $37.7 million for the first quarter of 2023. The $0.2 million increase over the fourth quarter of 2023 reflected a $0.6 million increase in compensation expense that was partially offset by decreases in occupancy expense of $0.1 million and other expense of $0.3 million. The increase in compensation expense was primarily attributable to higher payroll taxes (annual re-set) and 401k plan matching expense. Compared to the first quarter of 2023, the $2.5 million increase reflected higher other expense as we realized a $1.8 million gain from the sale of other real estate (banking office) in the first quarter of 2023. Further, compensation expense was $0.9 million higher primarily due to a lower level of realized loan cost (credit offset to salary expense) due to decreased new loan production.
Income Taxes
We realized income tax expense of $3.5 million (effective rate of 23.0%) for the first quarter of 2024 compared to $2.9 million (effective rate of 20.3%) for the fourth quarter of 2023 and $3.7 million (effective rate of 21.3%) for the first quarter of 2023. The increase in our effective tax rate for the first quarter of 2024 compared to both prior periods was primarily due to 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 23% for 2024.
Discussion of Financial Condition
Earning Assets
Average earning assets totaled $3.850 billion for the first quarter of 2024, an increase of $25.6 million, or 0.7%, over the fourth quarter of 2023, and a decrease of $213.1 million, or 5.2%, from the first quarter of 2023. The variance for both prior period comparisons was driven by change in 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 $17.4 million, or 0.6%, over the fourth quarter of 2023 and $146.2 million, or 5.7%, over the first quarter of 2023. Compared to both prior periods, the increase was primarily due to an increase in residential loans partially offset by a decline in consumer loans (primarily auto). Period end loans decreased $2.7 million, or 0.1%, from the fourth quarter of 2023 and increased $74.0 million, or 2.8%, over the first quarter of 2023. The decrease from the fourth quarter of 2023 was primarily due to lower consumer (auto) loan portfolio balances partially offset by growth in residential loans. Compared to the first quarter of 2023, the increase reflected growth in residential loans and, to a lesser extent, commercial real estate loans partially offset by lower consumer (auto) loan balances.
Allowance for Credit Losses
At March 31, 2024, the allowance for credit losses for HFI loans totaled $29.3 million compared to $29.9 million at December 31, 2023 and $26.8 million at March 31, 2023. Activity within the allowance is provided on Page 9. The decrease in the allowance from December 31, 2023 was primarily due to favorable loan grade migration, lower loss rates, and a combination of lower loan balances and shift in mix within the portfolio. Compared to March 31, 2023, the increase was primarily driven by loan growth. At March 31, 2024, the allowance represented 1.07% of HFI loans compared to 1.10% at December 31, 2023, and 1.01% at March 31, 2023.
Credit Quality
Overall credit quality remained stable. Nonperforming assets (nonaccrual loans and other real estate) totaled $6.8 million at March 31, 2024 compared to $6.2 million at December 31, 2023 and $4.6 million at March 31, 2023. At March 31, 2024, nonperforming assets as a percent of total assets equaled 0.16%, compared to 0.15% at December 31, 2023 and 0.10% at March 31, 2023. Nonaccrual loans totaled $6.8 million at March 31, 2024, a $0.6 million increase over December 31, 2023 and a $2.2 million increase over March 31, 2023. Further, classified loans totaled $22.3 million at March 31, 2024, a $0.1 million increase over December 31, 2023 and a $10.1 million increase over March 31, 2023.
Deposits
Average total deposits were $3.577 billion for the first quarter of 2024, an increase of $28.0 million, or 0.8%, over the fourth quarter of 2023 and a decrease of $240.8 million, or 6.3%, from the first quarter of 2023. Compared to the fourth quarter of 2023, the increase reflected a higher average balance for public funds (municipal clients - primarily NOW accounts) which typically peak late in the fourth quarter. Further, we realized growth in both our money market and CD balances which reflected a combination of balances migrating from noninterest bearing and savings accounts, in addition to receiving new deposits from existing and new clients. Compared to the first quarter of 2023, the decrease was primarily attributable to lower noninterest bearing and savings accounts, partially offset by increases in money market and CD balances. The decrease in noninterest bearing and savings accounts reflected a combination of consumer/business spend of pandemic related stimulus funds and rate sensitive clients seeking higher yields, partially offset by the aforementioned migration to higher rate deposit products (money market and CD). We continue to closely monitor our cost of deposits and deposit mix as we manage through this higher interest rate environment.
Liquidity
The Bank maintained an average net overnight funds (deposits with banks plus FED funds sold less FED funds purchased) sold position of $140.5 million in the first quarter of 2024 compared to $99.8 million in the fourth quarter of 2023 and $361.0 million in the first quarter of 2023. Compared to the fourth quarter of 2023, the increase was driven by average deposit growth and investment portfolio run-off, partially offset by average loan growth. Compared to the first quarter of 2023, the decrease was attributable to lower average deposit balances and growth in our loan portfolio, partially offset by investment portfolio run-off.
At March 31, 2024, we had the ability to generate approximately $1.542 billion (excludes overnight funds position of $231 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 as we have the option to pledge securities in our portfolio as collateral for borrowings or deposits, and/or to sell selected securities in our portfolio. Our portfolio consists of debt issued by the U.S. Treasury, U.S. governmental agencies, municipal governments, and corporate entities. At March 31, 2024, the weighted-average maturity and duration of our portfolio were 2.76 and 2.39 years, respectively, and the available-for-sale portfolio had a net unrealized tax-effected loss of $26.0 million.
Capital
Shareowners' equity was $448.3 million at March 31, 2024 compared to $440.6 million at December 31, 2023 and $403.3 million at March 31, 2023. For the first three months of 2024, shareowners' equity was positively impacted by net income attributable to shareowners of $12.6 million, net adjustments totaling $0.6 million related to transactions under our stock compensation plans, stock compensation accretion of $0.4 million, and a $0.3 million increase in the fair value of the interest rate swap related to subordinated debt. Shareowners' equity was reduced by a common stock dividend of $3.6 million ($0.21 per share), the repurchase of stock of $2.3 million (82,540 shares), and a $0.3 million increase in the net unrealized loss on available for sale securities.
At March 31, 2024, our total risk-based capital ratio was 16.84% compared to 16.57% at December 31, 2023 and 15.29% at March 31, 2023. Our common equity tier 1 capital ratio was 13.82%, 13.52%, and 12.40%, respectively, on these dates. Our leverage ratio was 10.45%, 10.30%, and 9.09%, respectively, on these dates. At March 31, 2024, 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 (non-GAAP financial measure) was 8.53% at March 31, 2024 compared to 8.26% and 7.20% at December 31, 2023 and March 31, 2023, respectively. If our unrealized held-to-maturity securities losses of $21.6 million (after-tax) were recognized in accumulated other comprehensive loss, our adjusted tangible capital ratio would be 8.01%.
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 104 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 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 impact 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 recent volatility in 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; 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), military conflict, 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 consolidated statements of cash flows for the years ended December 31, 2021 and 2022 and for the each of the three month periods ended March 31, 2022 and 2023, six month periods ended June 30, 2022 and 2023 and nine month periods ended September 30, 2022 and 2023; any inability to implement and maintain effective internal control over financial reporting and/or disclosure control or inability to remediate our existing material weaknesses in our internal controls deemed ineffective; 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 cost and effects of cybersecurity incidents or other failures, interruptions, or security breaches of our systems or those of our customers or third-party providers; 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 for the fiscal year ended December 31, 2023, 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.
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) | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | |||||||||||
| Shareowners' Equity (GAAP) | $ | 448,314 | $ | 440,625 | $ | 419,706 | $ | 412,422 | $ | 403,260 | ||||||
| Less: Goodwill and Other Intangibles (GAAP) | 92,893 | 92,933 | 92,973 | 93,013 | 93,053 | |||||||||||
| Tangible Shareowners' Equity (non-GAAP) | A | 355,421 | 347,692 | 326,733 | 319,409 | 310,207 | ||||||||||
| Total Assets (GAAP) | 4,259,922 | 4,304,477 | 4,138,287 | 4,391,206 | 4,401,762 | |||||||||||
| Less: Goodwill and Other Intangibles (GAAP) | 92,893 | 92,933 | 92,973 | 93,013 | 93,053 | |||||||||||
| Tangible Assets (non-GAAP) | B | $ | 4,167,029 | $ | 4,211,544 | $ | 4,045,314 | $ | 4,298,193 | $ | 4,308,709 | |||||
| Tangible Common Equity Ratio (non-GAAP) | A/B | 8.53% | 8.26% | 8.08% | 7.43% | 7.20% | ||||||||||
| Actual Diluted Shares Outstanding (GAAP) | C | 16,947,204 | 17,000,758 | 16,997,886 | 17,025,023 | 17,049,913 | ||||||||||
| Tangible Book Value per Diluted Share (non-GAAP) | A/C | $ | 20.97 | $ | 20.45 | $ | 19.22 | $ | 18.76 | $ | 18.19 | |||||
| CAPITAL CITY BANK GROUP, INC. | |||||||
| EARNINGS HIGHLIGHTS | |||||||
| Unaudited | |||||||
| Three Months Ended | |||||||
| (Dollars in thousands, except per share data) | Mar 31, 2024 | Dec 31, 2023 | Mar 31, 2023 | ||||
| EARNINGS | |||||||
| Net Income Attributable to Common Shareowners | $ | 12,557 | $ | 11,720 | $ | 13,709 | |
| Diluted Net Income Per Share | $ | 0.74 | $ | 0.70 | $ | 0.80 | |
| PERFORMANCE | |||||||
| Return on Average Assets (annualized) | 1.21 | % | 1.12 | % | 1.26 | % | |
| Return on Average Equity (annualized) | 11.07 | 10.69 | 13.76 | ||||
| Net Interest Margin | 4.01 | 4.07 | 4.04 | ||||
| Noninterest Income as % of Operating Revenue | 32.06 | 30.46 | 30.53 | ||||
| Efficiency Ratio | 71.06 | % | 70.82 | % | 64.67 | % | |
| CAPITAL ADEQUACY | |||||||
| Tier 1 Capital | 15.67 | % | 15.37 | % | 14.23 | % | |
| Total Capital | 16.84 | 16.57 | 15.29 | ||||
| Leverage | 10.45 | 10.30 | 9.09 | ||||
| Common Equity Tier 1 | 13.82 | 13.52 | 12.40 | ||||
| Tangible Common Equity (1) | 8.53 | 8.26 | 7.20 | ||||
| Equity to Assets | 10.52 | % | 10.24 | % | 9.16 | % | |
| ASSET QUALITY | |||||||
| Allowance as % of Non-Performing Loans | 431.46 | % | 479.70 | % | 584.18 | % | |
| Allowance as a % of Loans HFI | 1.07 | 1.10 | 1.01 | ||||
| Net Charge-Offs as % of Average Loans HFI | 0.22 | 0.23 | 0.24 | ||||
| Nonperforming Assets as % of Loans HFI and OREO | 0.25 | 0.23 | 0.17 | ||||
| Nonperforming Assets as % of Total Assets | 0.16 | % | 0.15 | % | 0.10 | % | |
| STOCK PERFORMANCE | |||||||
| High | $ | 31.34 | $ | 32.56 | $ | 36.86 | |
| Low | 26.59 | 26.12 | 28.18 | ||||
| Close | $ | 27.70 | $ | 29.43 | $ | 29.31 | |
| Average Daily Trading Volume | 31,023 | 33,297 | 41,737 | ||||
| (1) Tangible common equity ratio is a non-GAAP financial measure. For additional information, including a reconciliation to GAAP, refer to Page 6. | |||||||
| CAPITAL CITY BANK GROUP, INC. | |||||||||||||||
| CONSOLIDATED STATEMENT OF FINANCIAL CONDITION | |||||||||||||||
| Unaudited | |||||||||||||||
| 2024 | 2023 | ||||||||||||||
| (Dollars in thousands) | First Quarter | Fourth Quarter | Third Quarter | Second Quarter | First Quarter | ||||||||||
| ASSETS | |||||||||||||||
| Cash and Due From Banks | $ | 73,642 | $ | 83,118 | $ | 72,379 | $ | 83,679 | $ | 84,549 | |||||
| Funds Sold and Interest Bearing Deposits | 231,047 | 228,949 | 95,119 | 285,129 | 303,403 | ||||||||||
| Total Cash and Cash Equivalents | 304,689 | 312,067 | 167,498 | 368,808 | 387,952 | ||||||||||
| Investment Securities Available for Sale | 327,338 | 337,902 | 334,052 | 386,220 | 402,943 | ||||||||||
| Investment Securities Held to Maturity | 603,386 | 625,022 | 632,076 | 641,398 | 651,755 | ||||||||||
| Other Equity Securities | 3,445 | 3,450 | 3,585 | 1,703 | 1,883 | ||||||||||
| Total Investment Securities | 934,169 | 966,374 | 969,713 | 1,029,321 | 1,056,581 | ||||||||||
| Loans Held for Sale | 24,705 | 28,211 | 34,013 | 44,659 | 28,475 | ||||||||||
| Loans Held for Investment ("HFI"): | |||||||||||||||
| Commercial, Financial, & Agricultural | 218,298 | 225,190 | 221,704 | 227,219 | 236,263 | ||||||||||
| Real Estate - Construction | 202,692 | 196,091 | 197,526 | 226,404 | 253,903 | ||||||||||
| Real Estate - Commercial | 823,690 | 825,456 | 828,234 | 831,285 | 798,438 | ||||||||||
| Real Estate - Residential | 1,012,791 | 1,001,257 | 966,512 | 893,384 | 847,697 | ||||||||||
| Real Estate - Home Equity | 214,617 | 210,920 | 203,606 | 203,142 | 206,931 | ||||||||||
| Consumer | 254,168 | 270,994 | 285,122 | 295,646 | 305,324 | ||||||||||
| Other Loans | 3,789 | 2,962 | 1,401 | 5,425 | 7,660 | ||||||||||
| Overdrafts | 1,127 | 1,048 | 1,076 | 1,007 | 931 | ||||||||||
| Total Loans Held for Investment | 2,731,172 | 2,733,918 | 2,705,181 | 2,683,512 | 2,657,147 | ||||||||||
| Allowance for Credit Losses | (29,329 | ) | (29,941 | ) | (29,083 | ) | (28,243 | ) | (26,808 | ) | |||||
| Loans Held for Investment, Net | 2,701,843 | 2,703,977 | 2,676,098 | 2,655,269 | 2,630,339 | ||||||||||
| Premises and Equipment, Net | 81,452 | 81,266 | 81,677 | 82,062 | 82,055 | ||||||||||
| Goodwill and Other Intangibles | 92,893 | 92,933 | 92,973 | 93,013 | 93,053 | ||||||||||
| Other Real Estate Owned | 1 | 1 | 1 | 1 | 13 | ||||||||||
| Other Assets | 120,170 | 119,648 | 116,314 | 118,073 | 123,294 | ||||||||||
| Total Other Assets | 294,516 | 293,848 | 290,965 | 293,149 | 298,415 | ||||||||||
| Total Assets | $ | 4,259,922 | $ | 4,304,477 | $ | 4,138,287 | $ | 4,391,206 | $ | 4,401,762 | |||||
| LIABILITIES | |||||||||||||||
| Deposits: | |||||||||||||||
| Noninterest Bearing Deposits | $ | 1,361,939 | $ | 1,377,934 | $ | 1,472,165 | $ | 1,520,134 | $ | 1,601,388 | |||||
| NOW Accounts | 1,212,452 | 1,327,420 | 1,092,996 | 1,269,839 | 1,242,721 | ||||||||||
| Money Market Accounts | 398,308 | 319,319 | 304,323 | 321,743 | 271,880 | ||||||||||
| Savings Accounts | 530,782 | 547,634 | 571,003 | 590,245 | 617,310 | ||||||||||
| Certificates of Deposit | 151,320 | 129,515 | 99,958 | 86,905 | 90,621 | ||||||||||
| Total Deposits | 3,654,801 | 3,701,822 | 3,540,445 | 3,788,866 | 3,823,920 | ||||||||||
| Repurchase Agreements | 23,477 | 26,957 | 22,910 | 22,619 | 4,429 | ||||||||||
| Other Short-Term Borrowings | 8,409 | 8,384 | 18,786 | 28,054 | 22,203 | ||||||||||
| Subordinated Notes Payable | 52,887 | 52,887 | 52,887 | 52,887 | 52,887 | ||||||||||
| Other Long-Term Borrowings | 265 | 315 | 364 | 414 | 463 | ||||||||||
| Other Liabilities | 65,181 | 66,080 | 75,585 | 77,192 | 85,878 | ||||||||||
| Total Liabilities | 3,805,020 | 3,856,445 | 3,710,977 | 3,970,032 | 3,989,780 | ||||||||||
| Temporary Equity | 6,588 | 7,407 | 7,604 | 8,752 | 8,722 | ||||||||||
| SHAREOWNERS' EQUITY | |||||||||||||||
| Common Stock | 169 | 170 | 170 | 170 | 170 | ||||||||||
| Additional Paid-In Capital | 34,861 | 36,326 | 36,182 | 36,853 | 37,512 | ||||||||||
| Retained Earnings | 435,364 | 426,275 | 418,030 | 408,771 | 397,654 | ||||||||||
| Accumulated Other Comprehensive Loss, Net of Tax | (22,080 | ) | (22,146 | ) | (34,676 | ) | (33,372 | ) | (32,076 | ) | |||||
| Total Shareowners' Equity | 448,314 | 440,625 | 419,706 | 412,422 | 403,260 | ||||||||||
| Total Liabilities, Temporary Equity and Shareowners' Equity | $ | 4,259,922 | $ | 4,304,477 | $ | 4,138,287 | $ | 4,391,206 | $ | 4,401,762 | |||||
| OTHER BALANCE SHEET DATA | |||||||||||||||
| Earning Assets | $ | 3,921,093 | $ | 3,957,452 | $ | 3,804,026 | $ | 4,042,621 | $ | 4,045,607 | |||||
| Interest Bearing Liabilities | 2,377,900 | 2,412,431 | 2,163,227 | 2,372,706 | 2,302,514 | ||||||||||
| Book Value Per Diluted Share | $ | 26.45 | $ | 25.92 | $ | 24.69 | $ | 24.21 | $ | 23.65 | |||||
| Tangible Book Value Per Diluted Share (1) | 20.97 | 20.45 | 19.22 | 18.76 | 18.19 | ||||||||||
| Actual Basic Shares Outstanding | 16,929 | 16,950 | 16,958 | 16,992 | 17,022 | ||||||||||
| Actual Diluted Shares Outstanding | 16,947 | 17,001 | 16,998 | 17,025 | 17,050 | ||||||||||
| (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. | |||||||||||||||
| CAPITAL CITY BANK GROUP, INC. | |||||||||||||||
| CONSOLIDATED STATEMENT OF OPERATIONS | |||||||||||||||
| Unaudited | |||||||||||||||
| 2024 | 2023 | ||||||||||||||
| (Dollars in thousands, except per share data) | First Quarter | Fourth Quarter | Third Quarter | Second Quarter | First Quarter | ||||||||||
| INTEREST INCOME | |||||||||||||||
| Loans, including Fees | $ | 40,683 | $ | 40,407 | $ | 39,344 | $ | 37,608 | $ | 34,891 | |||||
| Investment Securities | 4,244 | 4,392 | 4,561 | 4,815 | 4,924 | ||||||||||
| Federal Funds Sold and Interest Bearing Deposits | 1,893 | 1,385 | 1,848 | 2,782 | 4,111 | ||||||||||
| Total Interest Income | 46,820 | 46,184 | 45,753 | 45,205 | 43,926 | ||||||||||
| INTEREST EXPENSE | |||||||||||||||
| Deposits | 7,594 | 5,872 | 5,214 | 4,008 | 2,488 | ||||||||||
| Repurchase Agreements | 201 | 199 | 190 | 115 | 9 | ||||||||||
| Other Short-Term Borrowings | 39 | 310 | 440 | 336 | 452 | ||||||||||
| Subordinated Notes Payable | 628 | 627 | 625 | 604 | 571 | ||||||||||
| Other Long-Term Borrowings | 3 | 5 | 4 | 5 | 6 | ||||||||||
| Total Interest Expense | 8,465 | 7,013 | 6,473 | 5,068 | 3,526 | ||||||||||
| Net Interest Income | 38,355 | 39,171 | 39,280 | 40,137 | 40,400 | ||||||||||
| Provision for Credit Losses | 920 | 2,025 | 2,393 | 2,197 | 3,099 | ||||||||||
| Net Interest Income after Provision for Credit Losses | 37,435 | 37,146 | 36,887 | 37,940 | 37,301 | ||||||||||
| NONINTEREST INCOME | |||||||||||||||
| Deposit Fees | 5,250 | 5,304 | 5,456 | 5,326 | 5,239 | ||||||||||
| Bank Card Fees | 3,620 | 3,713 | 3,684 | 3,795 | 3,726 | ||||||||||
| Wealth Management Fees | 4,682 | 4,276 | 3,984 | 4,149 | 3,928 | ||||||||||
| Mortgage Banking Revenues | 2,878 | 2,327 | 1,839 | 3,363 | 2,871 | ||||||||||
| Other | 1,667 | 1,537 | 1,765 | 3,334 | 1,994 | ||||||||||
| Total Noninterest Income | 18,097 | 17,157 | 16,728 | 19,967 | 17,758 | ||||||||||
| NONINTEREST EXPENSE | |||||||||||||||
| Compensation | 24,407 | 23,822 | 23,003 | 23,438 | 23,524 | ||||||||||
| Occupancy, Net | 6,994 | 7,098 | 6,980 | 6,820 | 6,762 | ||||||||||
| Other | 8,770 | 9,038 | 9,122 | 10,027 | 7,389 | ||||||||||
| Total Noninterest Expense | 40,171 | 39,958 | 39,105 | 40,285 | 37,675 | ||||||||||
| OPERATING PROFIT | 15,361 | 14,345 | 14,510 | 17,622 | 17,384 | ||||||||||
| Income Tax Expense | 3,536 | 2,909 | 3,004 | 3,417 | 3,710 | ||||||||||
| Net Income | 11,825 | 11,436 | 11,506 | 14,205 | 13,674 | ||||||||||
| Pre-Tax Loss (Income) Attributable to Noncontrolling Interest | 732 | 284 | 1,149 | (31 | ) | 35 | |||||||||
| NET INCOME ATTRIBUTABLE TO COMMON SHAREOWNERS | $ | 12,557 | $ | 11,720 | $ | 12,655 | $ | 14,174 | $ | 13,709 | |||||
| PER COMMON SHARE | |||||||||||||||
| Basic Net Income | $ | 0.74 | $ | 0.69 | $ | 0.75 | $ | 0.83 | $ | 0.81 | |||||
| Diluted Net Income | 0.74 | 0.70 | 0.74 | 0.83 | 0.80 | ||||||||||
| Cash Dividend | $ | 0.21 | $ | 0.20 | $ | 0.20 | $ | 0.18 | $ | 0.18 | |||||
| AVERAGE SHARES | |||||||||||||||
| Basic | 16,951 | 16,947 | 16,985 | 17,002 | 17,016 | ||||||||||
| Diluted | 16,969 | 16,997 | 17,025 | 17,035 | 17,045 | ||||||||||
| CAPITAL CITY BANK GROUP, INC. | |||||||||||||||
| ALLOWANCE FOR CREDIT LOSSES ("ACL") | |||||||||||||||
| AND CREDIT QUALITY | |||||||||||||||
| Unaudited | |||||||||||||||
| 2024 | 2023 | ||||||||||||||
| (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 | $ | 29,941 | $ | 29,083 | $ | 28,243 | $ | 26,808 | $ | 25,068 | |||||
| Transfer from Other (Assets) Liabilities | (50 | ) | 66 | - | - | - | |||||||||
| Provision for Credit Losses | 932 | 2,354 | 1,993 | 1,922 | 3,260 | ||||||||||
| Net Charge-Offs (Recoveries) | 1,494 | 1,562 | 1,153 | 487 | 1,520 | ||||||||||
| Balance at End of Period | $ | 29,329 | $ | 29,941 | $ | 29,083 | $ | 28,243 | $ | 26,808 | |||||
| As a % of Loans HFI | 1.07% | 1.10% | 1.08% | 1.05% | 1.01% | ||||||||||
| As a % of Nonperforming Loans | 431.46% | 479.70% | 619.58% | 426.44% | 584.18% | ||||||||||
| ACL - UNFUNDED COMMITMENTS | |||||||||||||||
| Balance at Beginning of Period | 3,191 | $ | 3,502 | $ | 3,120 | $ | 2,833 | $ | 2,989 | ||||||
| Provision for Credit Losses | (70 | ) | (311 | ) | 382 | 287 | (156 | ) | |||||||
| Balance at End of Period (1) | 3,121 | 3,191 | 3,502 | 3,120 | 2,833 | ||||||||||
| ACL - DEBT SECURITIES | |||||||||||||||
| Provision for Credit Losses | $ | 58 | $ | (18 | ) | $ | 18 | $ | (12 | ) | $ | (5 | ) | ||
| CHARGE-OFFS | |||||||||||||||
| Commercial, Financial and Agricultural | $ | 282 | $ | 217 | $ | 76 | $ | 54 | $ | 164 | |||||
| Real Estate - Commercial | - | - | - | - | 120 | ||||||||||
| Real Estate - Residential | 17 | 79 | - | - | - | ||||||||||
| Real Estate - Home Equity | 76 | - | - | 39 | - | ||||||||||
| Consumer | 1,550 | 1,689 | 1,340 | 993 | 1,732 | ||||||||||
| Overdrafts | 638 | 602 | 659 | 894 | 634 | ||||||||||
| Total Charge-Offs | $ | 2,563 | $ | 2,587 | $ | 2,075 | $ | 1,980 | $ | 2,650 | |||||
| RECOVERIES | |||||||||||||||
| Commercial, Financial and Agricultural | $ | 41 | $ | 83 | $ | 28 | $ | 71 | $ | 95 | |||||
| Real Estate - Construction | - | - | - | 1 | 1 | ||||||||||
| Real Estate - Commercial | 204 | 16 | 17 | 11 | 8 | ||||||||||
| Real Estate - Residential | 37 | 34 | 30 | 132 | 57 | ||||||||||
| Real Estate - Home Equity | 24 | 17 | 53 | 131 | 25 | ||||||||||
| Consumer | 410 | 433 | 418 | 514 | 571 | ||||||||||
| Overdrafts | 353 | 442 | 376 | 633 | 373 | ||||||||||
| Total Recoveries | $ | 1,069 | $ | 1,025 | $ | 922 | $ | 1,493 | $ | 1,130 | |||||
| NET CHARGE-OFFS (RECOVERIES) | $ | 1,494 | $ | 1,562 | $ | 1,153 | $ | 487 | $ | 1,520 | |||||
| Net Charge-Offs as a % of Average Loans HFI (2) | 0.22% | 0.23% | 0.17% | 0.07% | 0.24% | ||||||||||
| CREDIT QUALITY | |||||||||||||||
| Nonaccruing Loans | $ | 6,798 | $ | 6,242 | $ | 4,694 | $ | 6,623 | $ | 4,589 | |||||
| Other Real Estate Owned | 1 | 1 | 1 | 1 | 13 | ||||||||||
| Total Nonperforming Assets ("NPAs") | $ | 6,799 | $ | 6,243 | $ | 4,695 | $ | 6,624 | $ | 4,602 | |||||
| Past Due Loans 30-89 Days | $ | 5,392 | $ | 6,854 | $ | 5,577 | $ | 4,207 | $ | 5,061 | |||||
| Classified Loans | 22,305 | 22,203 | 21,812 | 14,973 | 12,179 | ||||||||||
| Nonperforming Loans as a % of Loans HFI | 0.25% | 0.23% | 0.17% | 0.25% | 0.17% | ||||||||||
| NPAs as a % of Loans HFI and Other Real Estate | 0.25% | 0.23% | 0.17% | 0.25% | 0.17% | ||||||||||
| NPAs as a % of Total Assets | 0.16% | 0.15% | 0.11% | 0.15% | 0.10% | ||||||||||
| (1) Recorded in other liabilities | |||||||||||||||
| (2) Annualized | |||||||||||||||
| CAPITAL CITY BANK GROUP, INC. | ||||||||||||||||||||||||||||||||||||||||
| AVERAGE BALANCE AND INTEREST RATES | ||||||||||||||||||||||||||||||||||||||||
| Unaudited | ||||||||||||||||||||||||||||||||||||||||
| First Quarter 2024 | Fourth Quarter 2023 | Third Quarter 2023 | Second Quarter 2023 | First Quarter 2023 | ||||||||||||||||||||||||||||||||||||
| (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 | $ | 27,314 | $ | 563 | 5.99 | % | $ | 49,790 | $ | 817 | 6.50 | % | $ | 62,768 | $ | 971 | 6.14 | % | $ | 54,350 | 800 | 5.90 | % | $ | 55,110 | $ | 644 | 4.74 | % | |||||||||||
| Loans Held for Investment (1) | 2,728,629 | 40,196 | 5.95 | 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 | |||||||||||||||||||||||||
| Investment Securities | ||||||||||||||||||||||||||||||||||||||||
| Taxable Investment Securities | 952,328 | 4,239 | 1.78 | 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 | |||||||||||||||||||||||||
| Tax-Exempt Investment Securities (1) | 856 | 9 | 4.34 | 862 | 7 | 4.32 | 2,456 | 17 | 2.66 | 2,656 | 17 | 2.47 | 2,840 | 18 | 2.36 | |||||||||||||||||||||||||
| Total Investment Securities | 953,184 | 4,248 | 1.78 | 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 | |||||||||||||||||||||||||
| Federal Funds Sold and Interest Bearing Deposits | 140,488 | 1,893 | 5.42 | 99,763 | 1,385 | 5.51 | 136,556 | 1,848 | 5.37 | 218,902 | 2,782 | 5.10 | 360,971 | 4,111 | 4.62 | |||||||||||||||||||||||||
| Total Earning Assets | 3,849,615 | $ | 46,900 | 4.90 | % | 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 | % | |||||||||||||||
| Cash and Due From Banks | 75,763 | 76,681 | 75,941 | 75,854 | 74,639 | |||||||||||||||||||||||||||||||||||
| Allowance for Credit Losses | (30,030 | ) | (29,998 | ) | (29,172 | ) | (27,893 | ) | (25,637 | ) | ||||||||||||||||||||||||||||||
| Other Assets | 295,275 | 296,114 | 295,106 | 297,837 | 300,175 | |||||||||||||||||||||||||||||||||||
| Total Assets | $ | 4,190,623 | $ | 4,166,777 | $ | 4,218,855 | $ | 4,320,601 | $ | 4,411,865 | ||||||||||||||||||||||||||||||
| LIABILITIES: | ||||||||||||||||||||||||||||||||||||||||
| Noninterest Bearing Deposits | $ | 1,344,188 | $ | 1,416,825 | $ | 1,474,574 | $ | 1,539,877 | $ | 1,601,750 | ||||||||||||||||||||||||||||||
| NOW Accounts | 1,201,032 | $ | 4,497 | 1.51 | % | 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 | % | |||||||||||||||
| Money Market Accounts | 353,591 | 1,985 | 2.26 | 318,844 | 1,421 | 1.77 | 322,623 | 1,294 | 1.59 | 288,466 | 747 | 1.04 | 267,573 | 208 | 0.31 | |||||||||||||||||||||||||
| Savings Accounts | 539,374 | 188 | 0.14 | 557,579 | 202 | 0.14 | 579,245 | 200 | 0.14 | 602,848 | 120 | 0.08 | 629,388 | 76 | 0.05 | |||||||||||||||||||||||||
| Time Deposits | 138,328 | 924 | 2.69 | 116,797 | 553 | 1.88 | 95,203 | 231 | 0.96 | 87,973 | 103 | 0.47 | 89,675 | 52 | 0.24 | |||||||||||||||||||||||||
| Total Interest Bearing Deposits | 2,232,325 | 7,594 | 1.37 | 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 | |||||||||||||||||||||||||
| Total Deposits | 3,576,513 | 7,594 | 0.85 | 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 | |||||||||||||||||||||||||
| Repurchase Agreements | 25,725 | 201 | 3.14 | 26,831 | 199 | 2.94 | 25,356 | 190 | 2.98 | 17,888 | 115 | 2.58 | 9,343 | 9 | 0.37 | |||||||||||||||||||||||||
| Other Short-Term Borrowings | 3,758 | 39 | 4.16 | 16,906 | 310 | 7.29 | 24,306 | 440 | 7.17 | 17,834 | 336 | 7.54 | 37,766 | 452 | 4.86 | |||||||||||||||||||||||||
| Subordinated Notes Payable | 52,887 | 628 | 4.70 | 52,887 | 627 | 4.64 | 52,887 | 625 | 4.62 | 52,887 | 604 | 4.52 | 52,887 | 571 | 4.32 | |||||||||||||||||||||||||
| Other Long-Term Borrowings | 281 | 3 | 4.80 | 336 | 5 | 4.72 | 387 | 4 | 4.73 | 431 | 5 | 4.80 | 480 | 6 | 4.80 | |||||||||||||||||||||||||
| Total Interest Bearing Liabilities | 2,314,976 | $ | 8,465 | 1.47 | % | 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 | % | |||||||||||||||
| Other Liabilities | 68,295 | 78,772 | 83,099 | 84,305 | 81,206 | |||||||||||||||||||||||||||||||||||
| Total Liabilities | 3,727,459 | 3,724,238 | 3,782,851 | 3,892,909 | 3,998,996 | |||||||||||||||||||||||||||||||||||
| Temporary Equity | 7,150 | 7,423 | 8,424 | 8,935 | 8,802 | |||||||||||||||||||||||||||||||||||
| SHAREOWNERS' EQUITY: | 456,014 | 435,116 | 427,580 | 418,757 | 404,067 | |||||||||||||||||||||||||||||||||||
| Total Liabilities, Temporary Equity and Shareowners' Equity | $ | 4,190,623 | $ | 4,166,777 | $ | 4,218,855 | $ | 4,320,601 | $ | 4,411,865 | ||||||||||||||||||||||||||||||
| Interest Rate Spread | $ | 38,435 | 3.43 | % | $ | 39,264 | 3.55 | % | $ | 39,367 | 3.54 | % | $ | 40,224 | 3.67 | % | $ | 40,500 | 3.77 | % | ||||||||||||||||||||
| Interest Income and Rate Earned (1) | 46,900 | 4.90 | 46,277 | 4.80 | 45,840 | 4.69 | 45,292 | 4.57 | 44,026 | 4.39 | ||||||||||||||||||||||||||||||
| Interest Expense and Rate Paid (2) | 8,465 | 0.88 | 7,013 | 0.73 | 6,473 | 0.66 | 5,068 | 0.51 | 3,526 | 0.35 | ||||||||||||||||||||||||||||||
| Net Interest Margin | $ | 38,435 | 4.01 | % | $ | 39,264 | 4.07 | % | $ | 39,367 | 4.03 | % | $ | 40,224 | 4.06 | % | $ | 40,500 | 4.04 | % | ||||||||||||||||||||
| (1) Interest and average rates are calculated on a tax-equivalent basis using a 21% Federal tax rate. | ||||||||||||||||||||||||||||||||||||||||
| (2) Rate calculated based on average earning assets. | ||||||||||||||||||||||||||||||||||||||||
For Information Contact:
Jep Larkin
Executive Vice President and Chief Financial Officer
850.402.8450
