SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-Q
Quarterly Report Under Section 13 or 15(d)
of the Securities Exchange Act of 1934
For the Quarter:
March 31, 1994 Commission File Number 0-13358
CAPITAL CITY BANK GROUP, INC.
(Exact name of registrant as specified in its charter)
Florida 59 2273542
(State or other jurisdiction of (I.R.S. Employer Identification No.)
incorporation or organization)
217 North Monroe Street, Tallahassee, Florida 32301
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code:
(904) 224-1171
Indicate by check mark whether the registrant (1) has filed all reports required
to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during
the preceding 12 months (or such shorter period that the registrant was required
to file such reports), and (2) has been subject to such filing requirement for
the past 90 days.
Yes __X___ No _____
At April 30, 1994, 2,845,715 shares of the Registrant's Common Stock, $.01 par
value, were outstanding.
<PAGE>
CAPITAL CITY BANK GROUP, INC.
I N D E X
PART I. FINANCIAL INFORMATION PAGE NUMBER
Consolidated Statements of Condition --
March 31, 1994 and December 31, 1993 3
Consolidated Statements of Income --
Three Months Ended March 31, 1994 4
and 1993
Consolidated Statements of Cash Flows --
Three Months Ended March 31, 1994
and 1993 5
Notes to Consolidated Financial Statements 6
Management's Discussion and Analysis of
Financial Condition and Results of Operations 8
PART II. OTHER INFORMATION
Index to Exhibits 14
Signatures 14
<PAGE>
PART I. FINANCIAL INFORMATION
ITEM I. FINANCIAL STATEMENTS
CAPITAL CITY BANK GROUP, INC.
CONSOLIDATED STATEMENTS OF CONDITION
AS OF MARCH 31, 1994 AND DECEMBER 31, 1993
(Dollars In Thousands, Except Per Share Amounts)
March 31, December 31,
1994 1993
(Unaudited) (Audited)
ASSETS
Cash & Due From Banks $58,485 $56,665
Interest Bearing Deposits at Banks 603 1,257
Investment Securities, Market Value
$218,714 and $221,274 as of
March 31, 1994 and December 31,
1993, respectively (Note 2) 219,835 218,623
Federal Funds Sold 47,870 55,970
Loans: (Note 3) 400,233 406,567
Unearned Interest (6,453) (7,143)
Allowance for Loan Losses (7,770) (7,594)
Loans, Net 386,010 391,830
Premises & Equipment 21,829 20,820
Accrued Interest Receivable 5,380 5,467
Intangible Assets 1,628 1,719
Other Assets 8,152 9,984
TOTAL ASSETS $749,792 $762,335
LIABILITIES
Deposits:
Noninterest Bearing Deposits $165,138 $171,985
Interest Bearing Deposits (Note 4) 493,722 490,760
Total Deposits 658,860 662,745
Federal Funds Purchased and Securities
Sold Under Repurchase Agreements 14,907 23,264
Other Short-Term Borrowings l,000 1,202
Long-Term Debt 1,400 1,900
Other Liabilities 4,255 6,084
TOTAL LIABILITIES 680,422 695,195
SHAREHOLDERS' EQUITY
Common Stock, $.01 Par Value;
4,000,000 shares authorized;
3,105,243 issued 31 31
Surplus 5,852 5,857
Unrealized Gains and Losses (177) -
Retained Earnings 70,103 67,753
75,809 73,641
Treasury Stock: 253,709 shares at
March 31, 1994 and 255,927 at
December 31, 1993 (6,439) (6,501)
TOTAL SHAREHOLDERS' EQUITY 69,370 67,140
TOTAL LIABILITIES & SHAREHOLDERS'
EQUITY $749,792 $762,335
Book Value Per Share $24.33 $23.56
<PAGE>
CAPITAL CITY BANK GROUP, INC.
CONSOLIDATED STATEMENTS OF INCOME
FOR THE PERIODS ENDED MARCH 31
(Dollars in Thousands, Except Per Share Amounts)
1994 1993
Unaudited Unaudited
INTEREST INCOME
Interest and Fees on Loans $8,271 $7,961
Investment Securities:
U. S. Treasury 942 1,448
U. S. Government Agencies/Corp. 843 397
States and Political Subdivisions 882 846
Other Securities 80 54
Interest on Deposits in Other Banks 9 28
Federal Funds Sold 375 517
Total Interest Income 11,402 11,251
INTEREST EXPENSE
Deposits 3,303 3,660
Fed. Funds Purchased & Securities
Sold Under Repurchase Agreements 143 133
Long-Term Borrowings 20 20
Other Short-Term Debt 6 7
Total Interest Expense 3,472 3,820
Net Interest Income 7,930 7,431
Provision for Loan Losses 330 371
Net Interest Income After Provision for
Loan Losses 7,600 7,060
NONINTEREST INCOME
Income from Fiduciary Activities 191 177
Service Charges on Deposit Accounts 1,303 1,377
Data Processing 593 542
Securities Transactions (1) 8
Other 1,461 731
Total Noninterest Income 3,547 2,835
NONINTEREST EXPENSE
Salaries and Employee Benefits 4,252 3,893
Occupancy, Net 554 488
Furniture and Equipment 680 697
Other 2,413 2,105
Total Noninterest Expense 7,899 7,183
Income Before Income Tax and Accounting Change 3,248 2,712
Income Tax Expense 898 736
Income Before Accounting Change 2,350 1,976
Cumulative Effect of a Change in Accounting
Principle - (484)
NET INCOME $2,350 $1,492
Net Income Per Share Before Accounting Change $ .82 $ .68
Net Income Per Share $ .82 $ .51
Cash Dividends Per Share -- --
Average Shares Outstanding 2,851,016 2,925,845
<PAGE>
CAPITAL CITY BANK GROUP, INC.
STATEMENT OF CASH FLOWS
FOR THE PERIODS ENDED MARCH 31
(Dollars in Thousands)
1994 1993
(Unaudited) (Unaudited)
NET INCOME $2,350 $l,492
Adjustments to Reconcile Net Income to
Cash Provided by Operating Activities:
Provision for Loan Losses 330 371
Depreciation 421 446
Amortization of Intangible Assets 91 66
Cumulative Effect of Accounting Change -- 484
Net (Increase) Decrease in Interest
Receivable 87 (70)
Net (Increase) Decrease in Other Assets 1,890 (58)
Net Increase (Decrease) in Other
Liabilities 304 654
Net Cash From Operating Activities 5,473 3,385
CASH FLOWS FROM INVESTING ACTIVITIES:
Proceeds from Payments/Maturities of
Investment Securities 22,591 18,949
Purchase of Investment Securities (23,980) (32,805)
Net (Increase) Decrease in Loans 5,490 3,838
Purchase of Premises & Equipment (1,486) (329)
Sales of Premises & Equipment 56 2
Cash Acquired in Bank Acquisitions - 28,811
Net Cash from Investing Activities 2,671 18,466
CASH FLOWS FROM FINANCING ACTIVITIES:
Net Increase (Decrease) in Deposits (3,885) (3,099)
Net Increase (Decrease) in Federal
Funds Purchased (8,357) 3,773
Net Increase (Decrease) in Other Borrowed
Funds (202) (5)
Proceeds from Long-Term Debt - -
Repayment of Long-Term Debt (500) (500)
Dividends Paid (2,134) (1,990)
Sale (Purchase) of Treasury Stock - (32)
Net Cash From Financing Activities (15,078) (1,853)
Net Increase (Decrease) in Cash and
Cash Equivalents (6,934) 19,998
Cash and Cash Equivalents at Beginning of
Period 113,892 107,271
Cash and Cash Equivalents at End of Period $106,958 $127,269
Supplemental Disclosure:
Interest Paid $ 3,414 $ 3,744
Taxes Paid $ - $ -
<PAGE>
CAPITAL CITY BANK GROUP, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(1) MANAGEMENT'S OPINION AND ACCOUNTING POLICIES
The consolidated financial statements, included herein, have been prepared
by the Company, without audit, pursuant to the rules and regulations of the
Securities and Exchange Commission. Certain information and footnote
disclosures normally included in financial statements prepared in accordance
with generally accepted accounting principles have been condensed or omitted
pursuant to such rules and regulations. Prior year financial statements have
been reformatted and/or amounts reclassified, as necessary, to conform with the
current year presentation.
In the opinion of management, the consolidated financial statements contain
all adjustments, which are those of a recurring nature, and disclosures
necessary to present fairly the financial position of the Company as of March
31, 1994 and December 31, 1993, and the results of operations and cash flows for
the three month periods ended March 31, 1994 and 1993.
The Company and its subsidiaries follow generally accepted accounting
principles and reporting practices applicable to the banking industry. The
principles which materially affect the financial position, results of operations
and cash flows are set forth in Notes to Financial Statements which are included
in the Company's 1993 Annual Report and Form 10K.
(2) INVESTMENT SECURITIES
On January 1, 1994, the Company adopted Statement of Financial Accounting
Standards No. 115 ("Accounting for Certain Investments in Debt and Equity
Securities") and management transferred approximately 30% of the Company's
portfolio to the "Available-for-Sale" category. Securities transferred to the
Available-for-Sale category on the date the statement was adopted are as
follows:
Amortized Cost
U. S. Treasury $31,364,293
U. S. Government Agencies and Corporations 6,246,822
States & Political Subdivisions 20,853,825
Mortgage Backed Securities 3,842,192
Other Securities 500,000
Total Available for Sale $62,807,132
Securities in this category are recorded at fair value with unrealized gains and
losses, net of deferred taxes, reported as a separate component of equity
capital. At the time the new accounting standard was adopted the Company
recorded an unrealized gain, net of deferred taxes, of $847,000. As a result of
rising interest rates, the Company had an unrealized loss of $176,675 at March
31, 1994.
Prior to 1994, all securities were held for investment and carried at amortized
cost. It is not management's intention nor practice to participate in the
trading of securities and sales of securities have been minimal. With the
recent change in accounting standards, management felt it was prudent to
transfer a portion of its investment portfolio to the available-for-sale
category in order to properly manage its liquidity position and interest rate
risk. Securities in the available-for-sale portfolio will be recorded at fair
<PAGE>
value while securities in the held-to-maturity portfolio will continue to be
carried at amortized costs.
The carrying value and related market value of investment securities in the
held-to-maturity and available-for-sale portfolios at March 31, 1994 and the
held-for-investment portfolio at March 31, 1993 were as follows (dollars in
thousands):
March 31, 1994
Amortized Unrealized Unrealized Market
Held-To-Maturity Cost Gains Losses Value
U. S. Treasury $ 71,878 $ 85 $ 543 $ 71,420
U. S. Government Agencies
and Corporations 21,572 100 389 21,283
States and Political Subdivisions 51,797 601 958 51,440
Mortgage Backed Securities 3,483 10 32 3,461
Other Securities 3,771 11 7 3,775
Total $152,501 $ 807 $l,929 $151,379
March 31, 1994
Amortized Unrealized Unrealized Market
Available-For-Sale Cost Gains Losses Value
U. S. Treasury $ 32,746 $ 133 $120 $32,759
U. S. Government Agencies
and Corporations 7,077 6 158 6,925
States and Political Subdivisions 22,025 317 425 21,917
Mortgage Backed Securities 3,788 43 2 3,829
Other Securities 1,890 14 - 1,904
Total $ 67,526 $ 513 $705 $67,334
December 31, 1993
Amortized Unrealized Unrealized Market
Held-For-Investment Cost Gains Losses Value
U. S. Treasury $ 111,233 $ 578 $ 88 $111,723
U. S. Government Agencies
and Corporations 26,811 185 76 26,920
States and Political
Subdivisions 67,070 1,991 112 68,949
Mortgage Backed Securities 8,504 135 6 8,633
Other Securities 5,005 48 4 5,049
Total $218,623 $ 2,937 $ 286 $221,274
(3) LOANS
The composition of the Company's loan portfolio at March 31, 1994 and December
31, 1993 was as follows (dollars in thousands):
<PAGE>
March 31, 1994 December 31, 1993
Commercial, Financial
and Agricultural $ 40,005 $ 46,963
Real Estate-Construction 22,705 22,968
Real Estate-Mortgage 248,712 242,741
Consumer 88,811 93,895
Gross Loans $400,233 $406,567
(4) DEPOSITS
The composition of the Company's interest bearing deposits at March 31, 1994 and
December 31, 1993 was as follows (dollars in thousands):
March 31, 1994 December 31, 1993
NOW Accounts $ 96,848 $100,184
Money Market Accounts 79,969 77,302
Savings Deposit 113,441 110,128
Other Time Deposits 203,464 203,146
Total Interest Bearing Deposits $493,722 $490,760
ITEM II. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS
The following discussion sets forth the major factors that have affected the
Company's financial condition and results of operations and should be read in
conjunction with the accompanying financial statements. The year-to-date
averages used in this report are based on daily balances for each respective
period.
RESULTS OF OPERATIONS
Net Income
Net income was $2.3 million, or $.82 per share for the first quarter of 1994, a
per share increase of 60.8% over the $1.5 million, or $.51 per share for the
comparable period in 1993. A one-time, non-cash charge of $484,000, or $.17
per share, associated with the adoption of Statement of Financial Accounting
Standards No. 109 ("Accounting for Income Taxes") was recognized in the first
quarter of 1993. Excluding this adjustment, the Company earned $2.0 million or
$.68 per share. Other factors which impacted earnings include higher net
interest income, gains on the sale of real estate and higher noninterest
expense. Condensed statements of income for the respective periods are
presented below (dollars in thousands):
For The Three Months Ended March 31,
1994 1993
Interest and Dividend Income $11,402 $11,251
Taxable Equivalent Adjustment(1) 420 423
11,822 11,674
Interest Expense 3,472 3,820
Net Interest Income (FTE) 8,350 7,854
Provision for Loan Losses 330 371
<PAGE>
Taxable Equivalent Adjustment 420 423
Net Int. Inc. After Provision 7,600 7,060
Noninterest Income 3,547 2,835
Noninterest Expense 7,899 7,183
Income Before Income Taxes and
Accounting Change 3,248 2,712
Income Taxes 898 736
Income Before Accounting Change 2,350 1,976
Cumulative Effect of Accounting
Change - (484)
Net Income $ 2,350 $ 1,492
Percent Change
Before Accounting Change 18.93% (4.50%)
After Accounting Change 57.51% (27.89%)
Return on Average Assets (2)
Before Accounting Change 1.28% 1.15%
After Accounting Change 1.28% .87%
Return on Average Equity (2)
Before Accounting Change 13.90% 12.52%
After Accounting Change 13.90% 9.46%
(1) Computed using a statutory tax rate of 34%
(2) Annualized
Net Interest Income
First quarter taxable equivalent net interest income increased $496,000, or
6.3%, over the same period for 1993. The increase is attributable to the growth
in earning assets and improvement in the interest rate spread. Table 1 on page
14 provides a comparative analysis of the Company's average balances and
interest rates.
Taxable-equivalent interest income increased $148,000, or 1.3%, due to growth in
earning assets and a slight improvement in the mix. Average earning assets
increased $38.0 million over the first quarter of 1993 due primarily to
acquisitions which were consummated in March of 1993. Interest income generated
through asset growth was partially offset by lower yields on earning assets.
The average yield declined 34 basis points from 7.54% in the first quarter of
1993 to 7.20% in the first quarter of 1994. Although rates began to rise in the
first quarter of 1994, the lower yield reflects the general decline in interest
rates in recent years.
Interest expense declined $348,000, or 9.1%, due to a 47 basis point decline in
the average rate paid on interest bearing liabilities which fell from 3.19% in
the first quarter of 1993 to 2.72% in the first quarter of 1994. The reduction
in average rate paid is attributable to lower interest rates and a slight shift
in the deposit mix. Certificates of deposits, which generally represent a
higher cost of funds than other deposit instruments, declined as a percent of
average deposits from 33.6% in the first quarter of 1993 to 32.1% in the first
quarter of 1994, while noninterest bearing deposits increased from 22.9% to
23.6%. This shift in mix helped to reduce the overall cost of funds.
The Company's interest rate spread (defined as the average taxable equivalent
yield on earning assets less the average rate paid on interest bearing
liabilities) increased from 4.35% in the first quarter of 1993 to 4.48% in the
comparable quarter for 1994. The Company's net interest margin percentage
(defined as taxable-equivalent net interest income divided by average earning
assets) increased from 5.05% in the first quarter of 1993 to 5.08% in 1994. In
the current interest rate environment, it will be difficult for management to
maintain these relatively strong margins.
<PAGE>
Provisions for Loan Losses
The provision for loan losses for the three months ended March 31, 1994, was
$330,000 versus $371,000 for the first quarter of 1993. The provision of
$330,000 exceeded net charge-offs of $154,000 and increased the reserve to $7.8
million, or l.97%, of total loans at March 31, 1994. Charge-off activity for
the respective periods is set forth below.
Three Months Ended
1994 1993
Net Charge-Offs $154,000 $232,000
Net Charge-Offs (Annualized) as a percent
of Average Loans Outstanding, Net of Unearned
Interest .16% .26%
Noninterest Income
Noninterest income increased $712,000, or 25.1%, over the first quarter of 1993.
A majority of the increase is attributable to gains on the sale of real estate
and mortgage origination fees. During the first quarter, the Company recognized
gains, primarily from the sale of other real estate, totalling $340,000 which
represented a $334,000 increase over the comparable period for 1993. Mortgage
origination fees increased $108,000, or 70.4%, on an increase in mortgage
origination volume of $7.1 million, or 86.1%. Credit card merchant fees were up
$80,000, or 29.4%, reflecting an increase in the number of accounts and higher
volume.
Service charges on deposit accounts declined $74,000, or 5.4%, which is a
continuation of the decline experienced during 1993. The decline in service
charge income reflects a decrease in number of accounts, primarily transaction
accounts, and a lower level of activity subject to service charge assessments.
Noninterest income as a percent of average earning assets was 2.2% for the first
quarter of 1994 versus 1.8% for the comparable quarter in 1993.
Noninterest Expense
Noninterest expense in the first quarter of 1994 increased $716,000, or 10.0%,
over the first quarter of 1993. Compensation expense increased $359,000, or
9.2%, reflecting additional personnel expense associated with the new branches
acquired in March of 1993, an increase in commission-based pay tied to mortgage
origination volume and higher pension expense. A revision in the Plan's rate
assumptions to reflect the lower level of interest rates contributed to the
overall increase in pension expense.
Occupancy expense, including premises, furniture, fixtures and equipment
increased $49,000, or 4.l%. The increase attributable to the new branch
facilities was partially offset by a reduction in depreciation as certain pieces
of data processing equipment have become fully depreciated. With the recent
renovation of First National's main facility and purchase of an operations
center, which is expected to go on line in the third quarter, management is
projecting an increase in depreciation expense during the latter part of 1994.
Other noninterest expense increased $308,000 or 14.6%. A significant portion of
the increase is attributable to the operation of the new branches.
<PAGE>
Additionally, commission and service fees were up substantially due to higher
costs associated with credit card processing.
Net noninterest expense (noninterest income minus noninterest expense) as a
percent of average earning assets was 2.65% in the first quarter of 1994 versus
2.81% for the first quarter of 1993. The decrease in this percentage is
primarily attributable to nonrecurring gains recognized during the first quarter
of 1994.
Income Taxes
The provision for income taxes increased $162,000, or 22.0%, over the first
quarter of 1993. The increase in the provision is attributable to higher
taxable income. The Company's effective tax rate for the first quarter of 1994
was 27.6% compared to 27.1% for the same quarter in 1993.
During the first quarter of 1993, he Company adopted Statement of Financial
Accounting Standards NO. 109, "Accounting for Income Taxes", which changed the
accounting for income taxes to the "liability" method from the "deferral" method
previously required by Accounting Principals Board Opinion No. 11. A tax
expense of $484,000 resulting from the cumulative effect of adopting this new
standard is included in net income for the first quarter of 1993.
FINANCIAL CONDITION
The Company's average assets increased to $745.9 million in the first quarter of
1994 from $695.7 million in the first quarter of 1993. Average earning assets
were $665.0 million for the three months ended March 31, 1994 versus $627.0
million for the comparable quarter of 1993. Relative to the first quarter of
1993, average loans and investments have increased while balances in federal
funds sold have declined. Average loans are up $30.1 million, or 8.3%, of which
approximately $12.0 million is attributable to loans purchased in conjunction
with branch acquisitions. U.S. Government securities increased $23.8 million,
or 18.4%, while municipal securities increased $13.4 million, or 22.9%. The
increase in municipal securities reflects a more favorable tax-exempt market and
an opportunity to extend maturities. Growth in earning assets has been funded
through branch acquisitions which were consummated during the first quarter of
1993. Table I on page 14, presents average balances for the first quarter of
1994 and 1993.
During the first quarter of 1994, the Company adopted Statement of Financial
Accounting Standards No. 115 ("Accounting for Certain Investments in Debt and
Equity Securities"). To Afford greater flexibility in managing the portfolio,
management transferred approximately 30% of the portfolio to the "Available-for-
Sale" category. The available-for-sale securities portfolio will enable the
Company to better manage its liquidity position and interest rate risk without
adversely affecting the classification of securities in the "Held-to-Maturity"
portfolio, which are recorded at amortized costs. Securities in the available-
for-sale portfolio are recorded at fair value with unrealized gains and losses,
net of deferred taxes, reported as a separate component of equity capital. See
Note 2 in Notes to Consolidated Financial Statements for further discussion.
At March 31, 1994, the Company's nonperforming loans were $9.2 million versus
$9.4 million at year-end and $10.3 million at March 31, 1993. As a percentage
of nonperforming loans, the allowance for loan losses represented 84.7% at March
31, 1994 versus 80.6% at December 31, 1993 and 74.8% at March 31, 1993.
Nonperforming loans include nonaccruing and restructured loans. Other real
<PAGE>
estate, which includes property acquired either through foreclosure or by
receiving a deed in lieu of foreclosure, was $2.3 million at March 31, 1994,
versus $3.5 million at December 31, 1993, and $4.1 million at March 31, 1993.
Average deposits increased from $602.7 million for the first quarter of 1993, to
$647.8 million for the first quarter of 1994. Relative to the first quarter of
1993, the most significant deposit growth has been noninterest bearing and NOW
accounts. Average noninterest bearing deposits have increased $14.5 million, or
10.5%, and NOW accounts have increased $22.8 million, or 30.6%. The lower
interest rate environment has reduced the incentive for depositors to invest in
longer term, fixed rate deposits, thereby leaving higher balances in transaction
accounts.
The ratio of average noninterest bearing deposits to total deposits was 23.6%
for the first quarter of 1994 compared to 22.9% for the first quarter of 1993.
For the same periods, the ratio of average interest bearing liabilities to
average earning assets was 78.0%.
LIQUIDITY AND CAPITAL RESOURCES
Liquidity, for a financial institution, is the availability of funds to meet
increased loan demand and/or excessive deposit withdrawals. Management has
implemented a financial structure that provides ready access to sufficient
liquid funds to meet normal transaction requirements, take advantage of
investment opportunities and cover unforeseen liquidity demands. In addition to
core deposit growth, sources of funds available to meet liquidity demands for
the subsidiary banks include federal funds sold, near-term loan and investment
maturities and the ability to purchase federal funds through established lines
of credit with correspondent banks. Additionally the Parent Company maintains
two $6.0 million revolving lines of credit. As of March 31, 1994, there was
$1.4 million drawn under the two facilities, leaving available credit of $10.6
million.
The Company's equity capital was $69.4 million as of March 31, 1994 compared to
$67.1 million as of December 31, 1993. The Company's management continues to
monitor its capital position in relation to its level of assets with the
objective of maintaining a strong capital position. The leverage ratio was 9.0%
at March 31, 1994 versus 8.6% at December 31, 1993. Further, the Company's
risk-adjusted capital ratio of l7.2% significantly exceeds the 8.0% minimum
requirement under the risk-based regulatory guidelines.
State and federal regulations as well as the Company's long-term debt agreements
place certain restrictions on the payment of dividends by both the Company and
its Group banks. At March 31, 1994, these regulations and covenants did not
impair the Company's (or its Group banks') ability to declare and pay dividends
or to meet other existing obligations.
During the first three months of 1994, shareholders' equity increased $2.2
million, or 13.3%, on an annualized basis. At March 31, 1994, the Company's
common stock had a book value of $24.33 per share compared to $23.56 at December
31, 1993. Pursuant to the Company's stock repurchase program adopted in 1989,
the Company has repurchased 253,709 shares of its common stock, net of shares
subsequently reissued. In the first quarter of 1994, there were no shares
repurchased and 2,218 treasury shares were reissued as performance awards in
accordance with the Company's Stock Incentive Plan.
<PAGE>
<TABLE>
TABLE I
AVERAGES BALANCES & INTEREST RATES
(Taxable Equivalent Basis - Dollars in Thousands)
<CAPTION>
1994 1993
Average Average Average Average
Balance Interest Rate Balance Interest Rate
ASSETS
<S> <C> <C> <C> <C> <C> <C>
Loans, Net of Unearned Interest $391,625 $8,276 8.57% $361,538 $7,967 8.94%
Taxable Investment Securities 152,926 1,865 4.94% 129,170 l,899 5.96%
Tax-Exempt Investment Securities 71,959 1,297 7.21% 58,548 1,263 8.63%
Funds Sold 48,531 384 3.21% 77,785 545 2.84%
Total Earning Assets 665,041 11,822 7.20% 627,041 11,674 7.54%
Cash & Due From Banks 50,248 45,222
Allowance for Loan Losses (7,691) (7,818)
Other Assets 38,256 31,290
TOTAL ASSETS $745,854 $695,735
LIABILITIES
NOW Accounts 97,325 429 1.79% 74,540 413 2.33%
Money Market Accounts 79,038 387 1.98% 73,227 435 2.49%
Savings Accounts 110,933 656 2.40% 114,376 849 3.01%
Other Time Deposits 207,901 1,831 3.57% 202,470 1,963 3.93%
Total Int. Bearing Deposits 495,197 3,303 2.70% 464,613 3,660 3.22%
Funds Purchased 20,483 143 2.84% 21,414 133 2.51%
Other Borrowed Funds 1,099 6 2.33% 1,347 7 2.00%
Long-Term Debt 1,858 20 4.29% 1,917 20 4.23%
Total Int. Bearing Liabilities 518,637 3,472 2.72% 489,291 3,820 3.19%
Noninterest Bearing Deposits 152,593 138,086
Other Liabilities 6,053 4,378
TOTAL LIABILITIES 677,283 631,755
SHAREHOLDERS' EQUITY
Common Stock 31 31
Surplus 5,854 5,857
Retained Earnings 62,686 58,092
TOTAL S'HOLDERS' EQUITY 68,571 63,980
TOTAL LIAB. & EQUITY $745,854 $695,735
Interest Rate Spread 4.48% 4.35%
Net interest Income $8,350 $7,854
Net Interest Margin 5.08% 5.05%
1) Average balances include nonaccrual loans. Interest income includes fees on loans of approximately
$391,000 and $335,000, for the three months ended March 31, 1994 and 1993, respectively.
(2) Interest income includes the effects of taxable equivalent adjustments using a 34% tax rate.
</TABLE>
<PAGE>
PART II. OTHER INFORMATION
Items 1-5.
Not applicable
Item 6. Exhibits and Reports on Form 8-K
(A) Exhibits
Not applicable
(B) Reports on Form 8-K
The Company did not file any reports on Form 8-K during the
period ended March 31, 1994.
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 Chief Financial Officer hereunto duly authorized.
CAPITAL CITY BANK GROUP, INC.
(Registrant)
By:___________________________
J. Kimbrough Davis
Senior Vice President and
Chief Financial Officer
Date: May 12, 1994
