Capital City Bank Group, Inc. Reports First Quarter 2021 Results

Rhea-AI Summary

Capital City Bank Group reported a strong first quarter of 2021, achieving a net income of $9.5 million, up from $4.3 million year-over-year. Earnings per diluted share rose to $0.56, reflecting a solid return on assets of 1.01% and return on equity of 11.81%. Loan balances increased by $51 million, driven by SBA PPP loans totaling $65 million. The bank experienced a negative credit loss provision of $1 million, indicating improved credit quality. However, net interest income fell to $24.6 million due to lower rates. Overall, the bank's performance signals a positive outlook amid economic recovery.

Positive

• Net income increased to $9.5 million from $4.3 million year-over-year.
• Return on assets improved to 1.01% and return on equity to 11.81%.
• Loan balances grew by $51 million, a 2.6% sequential increase.
• SBA PPP Round 2 originations reached $65 million.
• Negative credit loss provision of $1 million indicates improved credit quality.
• Average deposit balances rose by $173 million, or 5.7%.

Negative

• Net interest income decreased to $24.6 million, down from $25.9 million year-over-year.
• Net interest margin fell to 2.85%, a decline of 93 basis points from the previous year.
• Higher noninterest expenses rose by $9.5 million compared to the first quarter of 2020.

TALLAHASSEE, Fla., April 27, 2021 (GLOBE NEWSWIRE) -- Capital City Bank Group, Inc. (NASDAQ: CCBG) today reported net income of $9.5 million, or $0.56 per diluted share, for the first quarter of 2021 compared to net income of $7.7 million, or $0.46 per diluted share, for the fourth quarter of 2020, and $4.3 million, or $0.25 per diluted share, for the first quarter of 2020.  

QUARTER HIGHLIGHTS

• Return on assets of 1.01% and return on equity of 11.81%
• Credit quality metrics remained stable and reduced COVID-19 exposure drove a negative credit loss provision of $1.0 million
• Period-end loan balances grew by $51 million, or 2.6% sequentially
  • SBA PPP Round 2 originations totaled $65 million through March 31^st
  • SBA PPP Round 1 forgiveness pay-offs totaled $36 million - $143 million in balances remain at period-end
  • SBA PPP deferred fees remaining at March 31^st totaled $5 million ($2 million for Round 1 and $3 million for Round 2)
• Average deposit balances grew $173 million, or 5.7% sequentially and reflected stimulus inflows as well as strong core deposit growth
• Noninterest expense declined $0.9 million driven by lower expense for other real estate and compensation
• Capital City Home Loans (“CCHL”) contributed $0.09 per share

“I am pleased with our first quarter results,” said William G. Smith, Jr., Chairman, President and CEO of Capital City Bank Group.  “Rising consumer spending, lower unemployment, improving credit quality and a noticeable increase in loan activity in and around our markets, are contributing to a stronger economy.  Our core business is performing well.  In addition to round two of the SBA PPP loans, we experienced solid growth in commercial real estate and residential loans, culminating in net loan growth of $51 million, or 2.6% for the quarter.  Wealth management, mortgage and debit/credit cards performed well.  Expenses declined $0.9 million, or 2% quarter over quarter.  After evaluating our credit risk, we lowered our allowance for credit losses by $1.8 million, or 8%.  This was based on our current level of problem assets and pandemic-related extensions, a $0.5 million net recovery for the quarter and our positive outlook on the economy.  The past year has been challenging.  Our team has responded to every challenge and we have tweaked our business model, where appropriate.  While our tactics may change, our strategy remains the same -- to produce long-term value for our shareowners.  I am optimistic about our future.” 

COVID-19 Update

• We continue to closely monitor conditions in our communities.  With case counts trending downward in most of our markets, we established a phased plan for safely returning to work beginning February 1st.
• On March 1^st, all of our banking offices returned to normal banking hours and lobby services.
• For the near term, we will continue to maintain flexible in-office and remote working arrangements for non-retail associates to limit building capacity.
• We are adhering to national guidelines and local safety ordinances to protect both clients and associates.
• We continue to support clients with the Small Business Administration Payment Protection Program (“SBA PPP”) by actively assisting with the Round 1 forgiveness process and offering funding for clients eligible in Round 2.

Discussion of Operating Results

Summary Overview

Compared to the fourth quarter of 2020, the $2.0 million increase in operating profit was attributable to a $2.3 million decrease in the provision for credit losses and lower noninterest expense of $0.9 million, partially offset by a $0.7 million decrease in noninterest income and lower net interest income of $0.5 million.

Compared to the first quarter of 2020, the $9.5 million increase in operating profit was attributable to a $14.3 million increase in noninterest income and a lower provision for credit losses of $6.0 million, partially offset by higher noninterest expense of $9.5 million and lower net interest income of $1.3 million.  This comparison reflects the acquisition of a 51% membership interest in, and consolidation of, CCHL on March 1, 2020.

Our return on average assets (“ROA”) was 1.01% and our return on average equity (“ROE”) was 11.81% for the first quarter of 2021.  These metrics were 0.84% and 8.97% for the fourth quarter of 2020, respectively, and 0.57% and 5.20% for the first quarter of 2020, respectively. 

Net Interest Income/Net Interest Margin

Tax-equivalent net interest income for the first quarter of 2021 was $24.6 million compared to $25.1 million for the fourth quarter of 2020 and $25.9 million for the first quarter of 2020.  The decrease compared to both prior periods reflected lower rates earned on investment securities and variable/adjustable rate loans.  The year-over-year decline also reflected lower rates on overnight funds.  Partially offsetting these declines were higher volumes of earning assets, including lower yielding SBA PPP loans and overnight funds.   

The federal funds target rate has remained in the range of 0.00%-0.25% since March 2020 when the Fed reduced its overnight rate by 150 basis points, and as a result, we continue to experience lower repricing of our variable/adjustable rate earning assets and investment securities.  Our overall cost of funds remained low during the first quarter of 2021 at 0.11%, a decrease of three basis points compared to the fourth quarter of 2020, primarily due to a reduction in short-term borrowings.    

Our net interest margin for the first quarter of 2021 was 2.85%, a decrease of 15 basis points from the fourth quarter of 2020 and a decline of 93 basis points from the first quarter of 2020.  The decreases were primarily attributable to significant growth in overnight funds which reduced our margin.   Our net interest margin for the first quarter of 2021, excluding the impact of overnight funds in excess of $200 million, was 3.45%.  We discuss the effect of the pandemic related stimulus programs on our balance sheet in more detail below under Discussion of Financial Condition.

Provision for Credit Loss

We recorded a negative provision for credit losses of $1.0 million (consisting of a negative $2.3 million for HFI loans, partially offset by a $1.3 million expense for unfunded loan commitments) for the first quarter of 2021 compared to provision expense of $1.3 million for the fourth quarter of 2020 and $5.0 million for the first quarter of 2020.  The negative provision for the first quarter of 2021 generally reflected improving economic conditions and a lower level of expected losses related to COVID-19.  Further, we recognized net loan recoveries of $0.5 million in the first quarter of 2021.  We discuss the allowance for credit losses and COVID-19 exposure further below.

Noninterest Income and Noninterest Expense

Noninterest income for the first quarter of 2021 totaled $29.8 million compared to $30.5 million for the fourth quarter of 2020 and $15.5 million for the first quarter of 2020.  The decrease from the fourth quarter of 2020 was due to lower mortgage banking revenues of $0.6 million and deposit of $0.4 million, partially offset by higher bank card fees of $0.2 million and other income of $0.1 million.  Compared to the first quarter of 2020, the $14.3 million increase reflected higher mortgage banking revenues of $13.9 million, wealth management fees of $0.5 million, and bank card fees of $0.6 million, partially offset by lower deposit fees of $0.7 million.    

Noninterest expense for the first quarter of 2021 totaled $40.5 million compared to $41.3 million for the fourth quarter of 2020 and $31.0 million for the first quarter of 2020.  The decrease from the fourth quarter of 2020 was primarily attributable to lower compensation expense of $0.6 million and other real estate owned (“OREO”) expense of $0.7 million, partially offset by higher other expense of $0.5 million.  Compared to the first quarter of 2020, the $9.5 million increase reflected expenses added by the CCHL acquisition as Core CCBG’s expenses remained flat. 

The 51% ownership acquisition of CCHL and consolidation into CCBG’s financial statements occurred on March 1, 2020.  The table below reflects the major components of noninterest income for both Core CCBG and CCHL to help facilitate a better understanding of the year over year comparison. 

		Three Months Ended
		Mar 31, 2021				Dec 31, 2020				Mar 31, 2020
(Dollars in thousands)		Core CCBG		CCHL		Core CCBG		CCHL		Core CCBG		CCHL
Deposit Fees	$	4,271		-	$	4,713	$	-	$	5,015	$	-
Bank Card Fees		3,618		-		3,462		-		3,051		-
Wealth Management Fees		3,090		-		3,069		-		2,604		-
Mortgage Banking Fees		279		16,846		302		17,409		1,138		2,115
Other		1,296		426		1,205		363		1,459		96
Total Noninterest Income	$	12,554	$	17,272	$	12,751	$	17,772	$	13,267	$	2,211
Salaries	$	12,171	$	10,276	$	12,384	$	10,398	$	13,488	$	2,242
Other Associate Benefits		3,396		221		3,740		200		3,957		49
Total Compensation		15,567		10,497		16,124		10,598		17,445		2,291
Occupancy, Net		5,106		861		5,056		920		4,748		231
Other		7,344		1,101		6,899		1,751		5,797		457
Total Noninterest Expense	$	28,017	$	12,459	$	28,079	$	13,269	$	27,990	$	2,979

Income Taxes

We realized income tax expense of $2.8 million (effective rate of 19%) for the first quarter of 2021 compared to $2.8 million (effective rate of 22%) for the fourth quarter of 2020 and $1.3 million (effective rate of 24%) for the first quarter of 2020.  Tax expense for the fourth quarter of 2020 was unfavorably impacted by a $0.3 million discrete tax expense.  Compared to the first quarter of 2020, the decrease in our effective tax rate was attributable to converting CCHL to a partnership for tax purposes in the second quarter of 2020.  Absent discrete items, we expect our annual effective tax rate to approximate 18%-19% in 2021. 

Discussion of Financial Condition

Earning Assets

Average earning assets were $3.498 billion for the first quarter of 2021, an increase of $160.5 million, or 4.8%, over the fourth quarter of 2020, and an increase of $746.0 million, or 27.1%, over the first quarter of 2020.  The increase over both prior periods was primarily driven by higher deposit balances, which funded growth in both overnight funds sold and SBA PPP loans.  Deposit balances increased as a result of strong core deposit growth, in addition to funding retained at the bank from SBA PPP loans, and various other stimulus programs.

We maintained an average net overnight funds (deposits with banks plus FED funds sold less FED funds purchased) sold position of $814.6 million in the first quarter of 2021 compared to an average net overnight funds sold position of $705.1 million in the fourth quarter of 2020 and $234.4 million in the first quarter of 2020.  The increase compared to both prior periods was driven by strong core deposit growth, in addition to pandemic related stimulus programs (see below – Funding). 

Average loans held for investment (HFI) increased $50.9 million, or 2.6%, over the fourth quarter of 2020 and increased $196.6 million, or 10.6%, over the first quarter of 2020.  Compared to the fourth quarter of 2020, average loan balances increased across all loan types except institutional and consumer, which declined slightly.  Compared to the first quarter of 2020, average loan balances increased across all loan types except institutional, consumer, and HELOCs.  Period-end HFI loans increased $51.3 million, or 2.6%, over the fourth quarter of 2020 and increased $195.3 million, or 10.5%, over the first quarter of 2020.

In the first quarter of 2021, we originated an additional round of SBA PPP loans totaling $65.4 million (reflected in the commercial loan category) which averaged $23.7 million for the quarter.  Approximately $256 million in SBA PPP loans have been made since the inception of this program.  Through the first quarter of 2021, approximately $47 million in SBA PPP loans have been forgiven and paid-off ($11 million in Q4 2020 and $36 million in Q1 2021).  Forgiveness applications are expected to remain strong over the next three months for SBA PPP loans funded in 2020, and then over the course of 2021 for the SBA PPP loans funded in 2021.  SBA PPP loan fee income totaled approximately $1.2 million for the first quarter of 2021.  At March 31, 2021 we had $5.0 million (net) in deferred SBA PPP loan fees.

Allowance for Credit Losses

At March 31, 2021, the allowance for credit losses for HFI loans totaled $22.0 million compared to $23.8 million at December 31, 2020 and $21.1 million at March 31, 2020.  Activity within the allowance is provided on Page 9.  The $1.8 million net decrease in the allowance for the first quarter of 2021 reflected net loan recoveries totaling $0.5 million and the release of $2.3 million in reserves which reflected lower expected loan losses related to COVID-19.  At March 31, 2021, the allowance represented 1.07% of HFI loans and provided coverage of 411% of nonperforming loans compared to 1.19% and 406%, respectively, at December 31, 2020 and 1.13% and 433%, respectively, at March 31, 2020.  At March 31, 2021, excluding SBA PPP loans (100% government guaranteed), the allowance represented 1.19% of HFI loans compared to 1.30% at December 31, 2020. 

Credit Quality/COVID-19 Exposure

Nonperforming assets (nonaccrual loans and OREO) totaled $5.5 million at March 31, 2021 compared to $6.7 million at December 31, 2020 and $6.3 million at March 31, 2020.  Nonaccrual loans totaled $5.4 million at March 31, 2021, a $0.5 million decrease from December 31, 2020 and a $0.5 million increase over March 31, 2020.  The balance of OREO totaled $0.1 million at March 31, 2021, a decrease of $0.7 million from December 31, 2020 and a $1.3 million decrease from March 31, 2020.

We continue to monitor our loan portfolio for segments that continue to be affected by the pandemic.  To assist our clients, we have extended loans totaling $333 million of which 75% were for commercial borrowers and 25% were for consumer borrowers.  Approximately $328 million, or 98%, of the loan balances associated with these borrowers have resumed making regularly scheduled payments of which loan balances totaling $2.9 million were over 30 days delinquent and an additional $0.6 million was on nonaccrual status at March 31, 2021.  Of the $5 million that remains on extension, no loans were classified at March 31, 2021.               

Funding (Deposits/Debt)

Average total deposits were $3.240 billion for the first quarter of 2021, an increase of $173.4 million, or 5.7%, over the fourth quarter of 2020 and $686.8 million, or 26.9%, over the first quarter of 2020.  Average core deposits grew $546.8 million over the first quarter of 2020, which includes $342.9 million in noninterest bearing deposits and $113.0 million in savings account balances. In addition, average public fund deposits grew $121 million during this period.  Over the past 12 months, multiple government stimulus programs have been implemented, including the CARES Act and the American Rescue Plan Act, which are responsible for a large part of the growth in average deposits. Given these increases, the potential exists for our deposit levels to be volatile throughout 2021 due to the uncertain timing of the outflows of the stimulus related balances and the economic recovery.  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 short-term borrowings decreased $29.2 million over the fourth quarter of 2020 and increased $30.5 million over the first quarter of 2020, which reflected a seasonal fluctuation in warehouse line borrowing needs to support CCHL’s loans held for sale. 

Capital

Shareowners’ equity was $324.4 million at March 31, 2021 compared to $320.8 million at December 31, 2020 and $328.5 million at March 31, 2020.  During the first quarter of 2021, shareowners’ equity was positively impacted by net income of $9.5 million, a $1.6 million increase in fair value of the interest rate swap related to subordinated debt, net adjustments totaling $0.3 million related to transactions under our stock compensation plans, stock compensation accretion of $0.2 million, and a $0.1 million decrease in the accumulated other comprehensive loss for our pension plan.  Shareowners’ equity was reduced by a common stock dividend of $2.5 million ($0.15 per share), reclassification of $4.2 million to temporary equity to increase the redemption value of the non-controlling interest in CCHL, and a $1.4 million decrease in the unrealized gain on investment securities.

At March 31, 2021, our total risk-based capital ratio was 17.20% compared to 17.30% at December 31, 2020 and 17.19% at March 31, 2020.  Our common equity tier 1 capital ratio was 13.63%, 13.71%, and 13.55%, respectively, on these dates.  Our leverage ratio was 8.97%, 9.33%, and 10.81%, 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 6.13% at March 31, 2021 compared to 6.25% and 7.98% at December 31, 2020 and March 31, 2020, respectively.

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 $3.9 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 and securities brokerage services.  Our bank subsidiary, Capital City Bank, was founded in 1895 and now has 57 banking offices and 85 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: the magnitude and duration of the COVID-19 pandemic and its impact on the global economy and financial market conditions and our business, results of operations and financial condition, including the impact of our participation in government programs related to COVID-19; the accuracy of the our financial statement estimates and assumptions; legislative or regulatory changes; fluctuations in inflation, interest rates, or monetary policies; the effects 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; 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, 2020, and our other filings with the SEC, which are available at the SEC’s internet site (http://www.sec.gov).  Forward-looking statements in this Press Release speak only as of the date of the Press Release, and we assume no obligation to update forward-looking statements or the reasons why actual results could differ.

USE OF NON-GAAP FINANCIAL MEASURES

We present a tangible common equity ratio and a tangible book value per diluted share that removes the effect of goodwill 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, 2021			Dec 31, 2020			Sep 30, 2020			Jun 30, 2020			Mar 31, 2020
Shareowners' Equity (GAAP)		$	324,426		$	320,837		$	339,425		$	335,057		$	328,507
Less: Goodwill (GAAP)			89,095			89,095			89,095			89,095			89,275
Tangible Shareowners' Equity (non-GAAP)	A		235,331			231,742			250,330			245,962			239,232
Total Assets (GAAP)			3,929,884			3,798,071			3,587,041			3,499,524			3,086,523
Less: Goodwill (GAAP)			89,095			89,095			89,095			89,095			89,275
Tangible Assets (non-GAAP)	B	$	3,840,789		$	3,708,976		$	3,497,946		$	3,410,429		$	2,997,248
Tangible Common Equity Ratio (non-GAAP)	A/B		6.13	%		6.25	%		7.16	%		7.21	%		7.98	%
Actual Diluted Shares Outstanding (GAAP)	C		16,875,719			16,844,997			16,800,563			16,821,743			16,845,462
Tangible Book Value per Diluted Share (non-GAAP)	A/C	$	13.94		$	13.76		$	14.90		$	14.62		$	14.20

CAPITAL CITY BANK GROUP, INC.
EARNINGS HIGHLIGHTS
Unaudited
		Three Months Ended
(Dollars in thousands, except per share data)		Mar 31, 2021			Dec 31, 2020		Mar 31, 2020
EARNINGS
Net Income Attributable to Common Shareowners	$	9,506		$	7,746	$	4,287
Diluted Net Income Per Share	$	0.56		$	0.46	$	0.25
PERFORMANCE
Return on Average Assets		1.01		%	0.84	%	0.57	%
Return on Average Equity		11.81			8.97		5.20
Net Interest Margin		2.85			3.00		3.78
Noninterest Income as % of Operating Revenue		54.90			55.00		37.52
Efficiency Ratio		74.36		%	74.36	%	74.89	%
CAPITAL ADEQUACY
Tier 1 Capital		16.08		%	16.19	%	16.12	%
Total Capital		17.20			17.30		17.19
Leverage		8.97			9.33		10.81
Common Equity Tier 1		13.63			13.71		13.55
Tangible Common Equity (1)		6.13			6.25		7.98
Equity to Assets		8.26		%	8.45	%	10.64	%
ASSET QUALITY
Allowance as % of Non-Performing Loans		410.78		%	405.66	%	432.61	%
Allowance as a % of Loans HFI		1.07			1.19		1.13
Net Charge-Offs as % of Average Loans HFI		(0.10	)		0.09		0.23
Nonperforming Assets as % of Loans HFI and OREO		0.27			0.33		0.34
Nonperforming Assets as % of Total Assets		0.14		%	0.18	%	0.21	%
STOCK PERFORMANCE
High	$	28.98		$	26.35	$	30.62
Low		21.42			18.14		15.61
Close	$	26.02		$	24.58	$	20.12
Average Daily Trading Volume		30,303			22,271		40,536
(1)  Tangible common equity ratio is a non-GAAP financial measure.  For additional information, including a reconciliation to GAAP, refer to Page 5.

CAPITAL CITY BANK GROUP, INC.
CONSOLIDATED STATEMENT OF FINANCIAL CONDITION
Unaudited
	2021				2020
(Dollars in thousands)	First Quarter				Fourth Quarter			Third Quarter			Second Quarter			First Quarter
ASSETS
Cash and Due From Banks	$	73,973		$	67,919		$	76,509		$	75,155		$	72,676
Funds Sold and Interest Bearing Deposits		851,910			860,630			626,104			513,273			196,936
Total Cash and Cash Equivalents		925,883			928,549			702,613			588,428			269,612
Investment Securities Available for Sale		406,245			324,870			328,253			341,180			382,514
Investment Securities Held to Maturity		199,109			169,939			202,593			232,178			251,792
Total Investment Securities		605,354			494,809			530,846			573,358			634,306
Loans Held for Sale ("HFS")		82,081			114,039			116,561			76,610			82,598
Loans Held for Investment ("HFI"):
Commercial, Financial, & Agricultural		413,819			393,930			402,997			421,270			249,020
Real Estate - Construction		138,104			135,831			125,804			117,794			122,595
Real Estate - Commercial		669,158			648,393			656,064			662,434			656,084
Real Estate - Residential		358,849			342,664			335,713			353,831			354,150
Real Estate - Home Equity		202,099			205,479			197,363			194,479			196,443
Consumer		267,666			269,520			268,393			266,417			275,982
Other Loans		7,082			9,879			10,488			4,883			6,580
Overdrafts		950			730			1,339			1,069			1,533
Total Loans Held for Investment		2,057,727			2,006,426			1,998,161			2,022,177			1,862,387
Allowance for Credit Losses		(22,026	)		(23,816	)		(23,137	)		(22,457	)		(21,083	)
Loans Held for Investment, Net		2,035,701			1,982,610			1,975,024			1,999,720			1,841,304
Premises and Equipment, Net		86,370			86,791			87,192			87,972			87,684
Goodwill		89,095			89,095			89,095			89,095			89,275
Other Real Estate Owned		110			808			1,227			1,059			1,463
Other Assets		105,290			101,370			84,483			83,282			80,281
Total Other Assets		280,865			278,064			261,997			261,408			258,703
Total Assets	$	3,929,884		$	3,798,071		$	3,587,041		$	3,499,524		$	3,086,523
LIABILITIES
Deposits:
Noninterest Bearing Deposits	$	1,473,891		$	1,328,809		$	1,378,314		$	1,377,033		$	1,066,607
NOW Accounts		993,571			1,046,408			827,506			808,244			779,467
Money Market Accounts		269,041			266,649			247,823			240,754			210,124
Regular Savings Accounts		518,373			474,100			451,944			423,924			384,480
Certificates of Deposit		103,232			101,594			103,859			105,041			104,907
Total Deposits		3,358,108			3,217,560			3,009,446			2,954,996			2,545,585
Short-Term Borrowings		55,687			79,654			90,936			63,958			76,516
Subordinated Notes Payable		52,887			52,887			52,887			52,887			52,887
Other Long-Term Borrowings		1,829			3,057			5,268			5,583			5,896
Other Liabilities		109,487			102,076			71,880			75,702			70,044
Total Liabilities		3,577,998			3,455,234			3,230,417			3,153,126			2,750,928
Temporary Equity		27,460			22,000			17,199			11,341			7,088
SHAREOWNERS' EQUITY
Common Stock		169			168			168			168			168
Additional Paid-In Capital		32,804			32,283			31,425			31,575			32,100
Retained Earnings		335,324			332,528			333,545			328,570			321,772
Accumulated Other Comprehensive Loss, Net of Tax		(43,871	)		(44,142	)		(25,713	)		(25,256	)		(25,533	)
Total Shareowners' Equity		324,426			320,837			339,425			335,057			328,507
Total Liabilities, Temporary Equity and Shareowners' Equity	$	3,929,884		$	3,798,071		$	3,587,041		$	3,499,524		$	3,086,523
OTHER BALANCE SHEET DATA
Earning Assets	$	3,597,071		$	3,475,904		$	3,271,672		$	3,185,418		$	2,776,228
Interest Bearing Liabilities		1,994,620			2,024,349			1,780,223			1,700,391			1,614,277
Book Value Per Diluted Share	$	19.22		$	19.05		$	20.20		$	19.92		$	19.50
Tangible Book Value Per Diluted Share(1)		13.94			13.76			14.90			14.62			14.20
Actual Basic Shares Outstanding		16,852			16,791			16,761			16,780			16,812
Actual Diluted Shares Outstanding		16,876			16,845			16,801			16,822			16,845
(1)  Tangible book value per diluted share is a non-GAAP financial measure.  For additional information, including a reconciliation to GAAP, refer to Page 5.

CAPITAL CITY BANK GROUP, INC.
CONSOLIDATED STATEMENT OF OPERATIONS
Unaudited
		2021			2020
(Dollars in thousands, except per share data)		First Quarter			Fourth Quarter			Third Quarter			Second Quarter			First Quarter
INTEREST INCOME
Interest and Fees on Loans	$	23,350		$	23,878		$	23,594		$	23,687		$	23,593
Investment Securities		1,883			2,096			2,426			2,737			3,015
Funds Sold		213			180			146			88			757
Total Interest Income		25,446			26,154			26,166			26,512			27,365
INTEREST EXPENSE
Deposits		208			201			190			218			939
Short-Term Borrowings		412			639			498			421			132
Subordinated Notes Payable		307			311			316			374			471
Other Long-Term Borrowings		21			30			40			41			50
Total Interest Expense		948			1,181			1,044			1,054			1,592
Net Interest Income		24,498			24,973			25,122			25,458			25,773
Provision for Credit Losses		(982	)		1,342			1,308			2,005			4,990
Net Interest Income after Provision for Credit Losses		25,480			23,631			23,814			23,453			20,783
NONINTEREST INCOME
Deposit Fees		4,271			4,713			4,316			3,756			5,015
Bank Card Fees		3,618			3,462			3,389			3,142			3,051
Wealth Management Fees		3,090			3,069			2,808			2,554			2,604
Mortgage Banking Revenues		17,125			17,711			22,983			19,397			3,253
Other		1,722			1,568			1,469			1,350			1,555
Total Noninterest Income		29,826			30,523			34,965			30,199			15,478
NONINTEREST EXPENSE
Compensation		26,064			26,722			26,164			23,658			19,736
Occupancy, Net		5,967			5,976			5,906			5,798			4,979
Other Real Estate, Net		(118	)		567			219			116			(798	)
Other		8,563			8,083			8,053			7,731			7,052
Total Noninterest Expense		40,476			41,348			40,342			37,303			30,969
OPERATING PROFIT		14,830			12,806			18,437			16,349			5,292
Income Tax Expense		2,787			2,833			3,165			2,950			1,282
Net Income		12,043			9,973			15,272			13,399			4,010
Pre-Tax Income Attributable to Noncontrolling Interest		(2,537	)		(2,227	)		(4,875	)		(4,253	)		277
NET INCOME ATTRIBUTABLE TO COMMON SHAREOWNERS	$	9,506		$	7,746		$	10,397		$	9,146		$	4,287
PER COMMON SHARE
Basic Net Income	$	0.56		$	0.46		$	0.62		$	0.55		$	0.25
Diluted Net Income		0.56			0.46			0.62			0.55			0.25
Cash Dividend	$	0.15		$	0.15		$	0.14		$	0.14		$	0.14
AVERAGE SHARES
Basic		16,838			16,763			16,771			16,797			16,808
Diluted		16,862			16,817			16,810			16,839			16,842

CAPITAL CITY BANK GROUP, INC.
ALLOWANCE FOR CREDIT LOSSES ("ACL")
AND RISK ELEMENT ASSETS
Unaudited
		2021			2020
(Dollars in thousands, except per share data)		First Quarter			Fourth Quarter			Third Quarter			Second Quarter			First Quarter
ACL - HELD FOR INVESTMENT
Balance at Beginning of Period	$	23,816		$	23,137		$	22,457		$	21,083		$	13,905
Impact of Adopting ASC 326 (CECL)		-			-			-			-			3,269
Provision for Credit Losses		(2,312	)		1,165			1,265			1,615			4,990
Net Charge-Offs		(522	)		486			585			241			1,081
Balance at End of Period	$	22,026		$	23,816		$	23,137		$	22,457		$	21,083
As a % of Loans HFI		1.07	%		1.19	%		1.16	%		1.11	%		1.13	%
As a % of Nonperforming Loans		410.78	%		405.66	%		420.30	%		322.37	%		432.61	%
ACL - UNFUNDED COMMITMENTS
Balance at Beginning of Period		1,644		$	1,467		$	1,424		$	1,033		$	157
Impact of Adopting ASC 326 (CECL)		-			-			-			-			876
Provision for Credit Losses		1,330			177			43			391			-
Balance at End of Period(1)		2,974			1,644			1,467			1,424			1,033
CHARGE-OFFS
Commercial, Financial and Agricultural	$	69		$	104		$	137		$	186		$	362
Real Estate - Commercial		-			-			17			-			11
Real Estate - Residential		6			38			1			1			110
Real Estate - Home Equity		5			10			58			52			31
Consumer		564			668			619			634			864
Overdrafts		492			564			450			541			702
Total Charge-Offs	$	1,136		$	1,384		$	1,282		$	1,414		$	2,080
RECOVERIES
Commercial, Financial and Agricultural	$	136		$	64		$	74		$	74		$	40
Real Estate - Construction		-			50			-			-			-
Real Estate - Commercial		645			27			30			70			191
Real Estate - Residential		75			153			35			51			40
Real Estate - Home Equity		124			40			41			64			33
Consumer		311			306			280			365			268
Overdrafts		367			258			237			549			427
Total Recoveries	$	1,658		$	898		$	697		$	1,173		$	999
NET CHARGE-OFFS	$	(522	)	$	486		$	585		$	241		$	1,081
Net Charge-Offs as a % of Average Loans HFI(2)		(0.10	)%		0.09	%		0.11	%		0.05	%		0.23	%
RISK ELEMENT ASSETS
Nonaccruing Loans	$	5,362		$	5,871		$	5,505		$	6,966		$	4,874
Other Real Estate Owned		110			808			1,227			1,059			1,463
Total Nonperforming Assets ("NPAs")	$	5,472		$	6,679		$	6,732		$	8,025		$	6,337
Past Due Loans 30-89 Days	$	2,622		$	4,594		$	3,191		$	2,948		$	5,077
Classified Loans		20,608			17,631			16,772			17,091			16,548
Performing Troubled Debt Restructuring's	$	13,597		$	13,887		$	14,693		$	15,133		$	15,934
Nonperforming Loans as a % of Loans HFI		0.26	%		0.29	%		0.28	%		0.34	%		0.26	%
NPAs as a % of Loans HFI and Other Real Estate		0.27	%		0.33	%		0.34	%		0.40	%		0.34	%
NPAs as a % of  Total Assets		0.14	%		0.18	%		0.19	%		0.23	%		0.21	%
(1) Recorded in other liabilities
(2) Annualized

CAPITAL CITY BANK GROUP, INC.
AVERAGE BALANCE AND INTEREST RATES
Unaudited
		First Quarter 2021								Fourth Quarter 2020								Third Quarter 2020								Second Quarter 2020								First Quarter 2020
(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	$	106,242		$	970		3.70	%	$	121,052		$	878		3.85	%	$	92,522		$	671		3.64	%	$	74,965			550		3.41	%	$	34,923		$	210		2.64	%
Loans Held for Investment(1)		2,044,363			22,483		4.46			1,993,470			23,103		4.55			2,005,178			23,027		4.53			1,982,960			23,235		4.70			1,847,780			23,482		5.11
Investment Securities
Taxable Investment Securities		528,842			1,863		1.41			513,277			2,072		1.61			553,395			2,401		1.73			601,509			2,708		1.80			629,512			2,995		1.91
Tax-Exempt Investment Securities(1)		3,844			25		2.61			4,485			30		2.71			4,860			32		2.66			5,865			37		2.51			5,293			25		1.86
Total Investment Securities		532,686			1,888		1.42			517,762			2,102		1.62			558,255			2,433		1.74			607,374			2,745		1.81			634,805			3,020		1.91
Funds Sold		814,638			214		0.11			705,125			180		0.10			567,883			146		0.10			351,473			88		0.10			234,372			757		1.30
Total Earning Assets		3,497,929		$	25,555		2.96	%		3,337,409		$	26,263		3.14	%		3,223,838		$	26,277		3.25	%		3,016,772		$	26,618		3.55	%		2,751,880		$	27,469		4.01	%
Cash and Due From Banks		68,978								73,968								69,893								72,647								56,958
Allowance for Loan Losses		(24,128	)							(23,725	)							(22,948	)							(21,642	)							(14,389	)
Other Assets		278,742								264,784								268,549								261,449								244,339
Total Assets	$	3,821,521							$	3,652,436							$	3,539,332							$	3,329,226							$	3,038,788
LIABILITIES:
Interest Bearing Deposits
NOW Accounts	$	985,517		$	76		0.03	%	$	879,564		$	66		0.03	%	$	826,776		$	61		0.03	%	$	789,378		$	78		0.04	%	$	808,811		$	725		0.36	%
Money Market Accounts		269,829			33		0.05			261,543			34		0.05			247,185			32		0.05			222,377			40		0.07			212,211			117		0.22
Savings Accounts		492,252			60		0.05			466,116			57		0.05			438,762			54		0.05			409,366			50		0.05			379,237			46		0.05
Time Deposits		102,089			39		0.15			102,809			44		0.17			104,522			43		0.16			104,718			50		0.19			105,542			51		0.19
Total Interest Bearing Deposits		1,849,687			208		0.05	%		1,710,032			201		0.05	%		1,617,245			190		0.05	%		1,525,839			218		0.06	%		1,505,801			939		0.25	%
Short-Term Borrowings		67,033			412		2.49	%		95,280			639		2.67	%		74,557			498		2.66	%		73,377			421		2.31	%		32,915			132		1.61	%
Subordinated Notes Payable		52,887			307		2.32			52,887			311		2.30			52,887			316		2.34			52,887			374		2.80			52,887			471		3.52
Other Long-Term Borrowings		2,736			21		3.18			3,700			30		3.18			5,453			40		2.91			5,766			41		2.84			6,312			50		3.21
Total Interest Bearing Liabilities		1,972,343		$	948		0.19	%		1,861,899		$	1,181		0.25	%		1,750,142		$	1,044		0.24	%		1,657,869		$	1,054		0.26	%		1,597,915		$	1,592		0.40	%
Noninterest Bearing Deposits		1,389,821								1,356,104								1,354,032								1,257,614								1,046,889
Other Liabilities		111,050								74,605								83,192								72,073								59,587
Total Liabilities		3,473,214								3,292,608								3,187,366								2,987,556								2,704,391
Temporary Equity		21,977								16,154								11,893								8,155								2,506
SHAREOWNERS' EQUITY:		326,330								343,674								340,073								333,515								331,891
Total Liabilities, Temporary Equity and Shareowners' Equity	$	3,821,521							$	3,652,436							$	3,539,332							$	3,329,226							$	3,038,788
Interest Rate Spread				$	24,607		2.77	%				$	25,082		2.88	%				$	25,233		3.01	%				$	25,564		3.30	%				$	25,877		3.61	%
Interest Income and Rate Earned(1)					25,555		2.96						26,263		3.14						26,277		3.25						26,618		3.55						27,469		4.01
Interest Expense and Rate Paid(2)					948		0.11						1,181		0.14						1,044		0.13						1,054		0.14						1,592		0.23
Net Interest Margin				$	24,607		2.85	%				$	25,082		3.00	%				$	25,233		3.12	%				$	25,564		3.41	%				$	25,877		3.78	%
(1)   Interest and average rates are calculated on a tax-equivalent basis using a 21% Federal tax rate.
(2)  Rate calculated based on average earning assets.

For Information Contact:
J. Kimbrough Davis
Executive Vice President and Chief Financial Officer
850.402.7820

 

FAQ

What is Capital City Bank Group's net income for Q1 2021?

Capital City Bank Group reported a net income of $9.5 million for Q1 2021.

How much did loan balances increase in the first quarter of 2021?

Loan balances increased by $51 million, or 2.6%, in Q1 2021.

What was the return on equity for Capital City Bank Group in Q1 2021?

The return on equity for Capital City Bank Group in Q1 2021 was 11.81%.

What were the SBA PPP Round 2 originations for CCBG in Q1 2021?

SBA PPP Round 2 originations totaled $65 million for Capital City Bank Group in Q1 2021.

How did the net interest income perform in Q1 2021 compared to Q1 2020?

Net interest income decreased to $24.6 million in Q1 2021, down from $25.9 million in Q1 2020.