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, 1996 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) 671-0610
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, 1996, 2,862,290 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, 1996 and December 31, 1995 3
Consolidated Statements of Income --
Three Months Ended March 31, 1996 4
and 1995
Consolidated Statements of Cash Flows --
Three Months Ended March 31, 1996
and 1995 5
Notes to Consolidated Financial Statements 6
Management's Discussion and Analysis of
Financial Condition and Results of Operations 9
PART II. OTHER INFORMATION
Index to Exhibits 16
Signatures 16
<PAGE>
PART I. FINANCIAL INFORMATION
ITEM I. FINANCIAL STATEMENTS
CAPITAL CITY BANK GROUP, INC.
CONSOLIDATED STATEMENTS OF CONDITION
AS OF MARCH 31, 1996 AND DECEMBER 31, 1995
(Dollars In Thousands, Except Per Share Amounts)
March 31, December 31,
1996 1995
(Unaudited) (Audited)
ASSETS
Cash and Due From Banks $54,502 $61,613
Federal Funds Sold 28,950 41,150
Interest Bearing Deposits in Other Banks 1,978 300
Investment Securities Available-for-Sale 211,513 230,747
Loans 466,303 447,779
Unearned Interest (3,513) (3,806)
Allowance for Loan Losses (6,429) (6,474)
Loans, Net 456,361 437,499
Premises and Equipment 26,580 26,240
Accrued Interest Receivable 7,312 7,339
Intangibles 1,068 1,129
Other Assets 7,974 7,642
Total Assets $796,238 $813,659
LIABILITIES
Deposits:
Noninterest Bearing Deposits 171,135 168,566
Interest Bearing Deposits 506,027 531,013
Total Deposits 677,162 699,579
Federal Funds Purchased and Securities Sold
Under Repurchase Agreements 26,060 17,367
Other Short-Term Borrowings 1,827 2,400
Long-Term Debt 1,954 1,982
Other Liabilities 6,939 11,173
Total Liabilities 713,942 732,501
SHAREHOLDERS' EQUITY
Common Stock, $.01 par value; 4,000,000 shares
authorized; 2,862,287 issued and outstanding at
March 31, 1996 and 2,853,716 issued and
outstanding at December 31, 1995 29 29
Additional Paid In Capital 4,162 3,913
Retained Earnings 78,042 76,248
Net Unrealized Gain (Loss) on Available-
for-Sale Securities 63 968
Total Shareholders' Equity 82,296 81,158
Total Liabilities and
Shareholders' Equity $796,238 $813,659
Book Value Per Share $ 28.75 $ 28.44
<PAGE>
CAPITAL CITY BANK GROUP, INC.
CONSOLIDATED STATEMENTS OF INCOME
FOR THE PERIODS ENDED MARCH 31
(Dollars in Thousands, Except Per Share Amounts)
1996 1995
Unaudited Unaudited
INTEREST INCOME
Interest and Fees on Loans $10,675 $ 9,737
Investment Securities:
U. S. Treasury 1,044 1,087
U. S. Government Agencies/Corp. 1,011 556
States and Political Subdivisions 904 839
Other Securities 69 67
Funds Sold 458 478
Total Interest Income $14,161 $12,764
INTEREST EXPENSE
Deposits 4,770 4,205
Federal Funds Purchased & Securities
Sold Under Repurchase Agreements 283 225
Other Short-Term Borrowings 12 12
Long-Term Debt 30 -
Total Interest Expense 5,095 4,442
Net Interest Income 9,066 8,322
Provision for Loan Losses 261 274
Net Interest Income After Provision for
Loan Losses 8,805 8,048
NONINTEREST INCOME
Service Charges on Deposit Accounts 1,519 1,323
Data Processing 667 606
Income from Fiduciary Activities 288 337
Securities Transactions 12 -
Other 1,072 1,088
Total Noninterest Income 3,558 3,354
NONINTEREST EXPENSE
Salaries and Employee Benefits 4,785 4,443
Occupancy, Net 617 591
Furniture and Equipment 891 840
Other 2,485 2,486
Total Noninterest Expense 8,778 8,360
Income Before Income Taxes 3,585 3,042
Income Tax Expense 1,018 854
NET INCOME $ 2,567 $ 2,188
Net Income Per Share $ .90 $ .77
Cash Dividends Per Share $ .27 $ --
Average Shares Outstanding 2,859,980 2,851,821
<PAGE>
CAPITAL CITY BANK GROUP, INC.
STATEMENT OF CASH FLOWS
FOR THE PERIODS ENDED MARCH 31
(Dollars in Thousands)
1996 1995
(Unaudited) (Unaudited)
NET INCOME $ 2,567 $ 2,188
Adjustments to Reconcile Net Income to
Cash Provided by Operating Activities:
Provision for Loan Losses 261 274
Depreciation 609 583
Net Amortization (Accretion)-AFS Securities 303 341
Amortization of Intangible Assets 61 67
Non-Cash Compensation 90 72
Net (Increase) Decrease in Interest
Receivable 27 (588)
Net (Increase) Decrease in Other Assets (331) 1,637
Net Increase (Decrease) in Other
Liabilities (1,814) 1,045
Net Cash From Operating Activities 1,773 5,619
CASH FLOWS FROM INVESTING ACTIVITIES:
Proceeds from Payments/Maturities of
Investment Securities-HTM - 7,357
Proceeds from Payments/Maturities of
Investment Securities-AFS 36,084 2,825
Purchase of Investment Securities-HTM - (5,587)
Purchase of Investment Securities-AFS (17,965) (2,442)
Net (Increase) Decrease in Loans (19,124) (1,327)
Purchase of Premises & Equipment (949) (1,411)
Sales of Premises & Equipment - 12
Net Cash from Investing Activities (1,954) (573)
CASH FLOWS FROM FINANCING ACTIVITIES:
Net Increase (Decrease) in Deposits (22,417) 20,439
Net Increase (Decrease) in Federal
Funds Purchased 8,693 10,742
Net Increase (Decrease) in Other Short-Term
Borrowings (574) 455
Repayment of Long-Term Debt (27) -
Dividends Paid (3,313) (2,277)
Issuance of Common Stock 186 30
Net Cash From Financing Activities (17,452) 29,389
Net Increase (Decrease) in Cash and
Cash Equivalents (17,633) 34,435
Cash and Cash Equivalents at Beginning of
Period 103,063 89,067
Cash and Cash Equivalents at End of Period $ 85,430 $123,502
Supplemental Disclosure:
Interest Paid $ 6,237 $ 4,163
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, 1996 and December 31, 1995, and the results of operations and cash flows for
the three month periods ended March 31, 1996 and 1995.
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 1995 Annual Report and Form 10K. The Company has not changed
its accounting and reporting policies from those disclosed in its 1995 Annual
Report or Form 10K.
(2) INVESTMENT SECURITIES
The carrying value and related market value/amortized cost of investment
securities in the available-for-sale portfolios at March 31, 1996 and December
31, 1995 were as follows (dollars in thousands):
March 31, 1996
Amortized Unrealized Unrealized Market
Available-For-Sale Cost Gains Losses Value
U. S. Treasury $ 62,712 $ 281 $ 45 $ 62,948
U. S. Government Agencies
and Corporations 65,289 57 544 64,802
States and Political Subdivisions 74,582 680 317 74,945
Mortgage Backed Securities 4,872 35 66 4,841
Other Securities 3,959 18 - 3,977
Total $211,414 $1,071 $ 972 $211,513
<PAGE>
December 31, 1995
Amortized Unrealized Unrealized Market
Available For Sale Cost Gains Losses Value
U.S. Treasury $ 72,289 $ 470 $ 54 $ 72,705
U.S. Government Agencies
and Corporations 70,883 264 96 71,051
States and Political
Subdivisions 75,986 1,037 143 76,880
Mortgage Backed Securities 5,965 47 26 5,986
Other Securities 4,107 19 1 4,125
Total $ 229,230 $ 1,837 $ 320 $230,747
(3) LOANS
The composition of the Company's loan portfolio at March 31, 1996 and December
31, 1995 was as follows (dollars in thousands):
1996 1995
Commercial, Financial
and Agricultural $ 55,874 $ 46,149
Real Estate-Construction 27,081 28,391
Real Estate-Mortgage 268,139 259,503
Consumer 115,209 113,736
Gross Loans $466,303 $447,779
(4) ALLOWANCE FOR LOAN LOSSES
An analysis of the changes in the allowance for loan losses for the three month
period ended March 31, 1996 and 1995, is as follows (dollars in thousands):
1996 1995
Balance, Beginning of the Period $ 6,474 $ 7,551
Provision for Loan Losses 261 274
Recoveries on Loans Previously
Charged-Off 104 183
Loans Charged-Off (410) (288)
Balance, End of Period $ 6,429 $ 7,720
<PAGE>
Impaired loans are primarily defined as all nonaccruing loans for the loan
categories which are included within the scope of SFAS 114. Selected
information pertaining to impaired loans is depicted in the table below (dollars
in thousands).
1996 1995
Impaired Loans: Valuation Valuation
Balance Allowance Balance Allowance
With Related Credit Allowance $ 133 $ 19 $ 946 $ 334
Without Related Credit Allowance 1,642 - $ 1,962 $ --
Average Recorded Investment
for the Period 2,166 * $ 3,282 $ *
Interest Income:
Recognized $ 12 $ 37
Collected $ 7 $ 31
* Not Applicable
__________________________________________________________________________
The Company recognizes income on impaired loans primarily on the cash basis. Any
change in the present value of expected cash flows is recognized through the
allowance for loan losses.
(5) DEPOSITS
The composition of the Company's interest bearing deposits at March 31, 1996 and
December 31, 1995 was as follows (dollars in thousands):
March 31, 1996 December 31, 1995
NOW Accounts $ 91,768 $122,517
Money Market Accounts 80,900 67,942
Savings Deposits 79,514 78,522
Other Time Deposits 253,845 262,032
Total Interest Bearing Deposits $506,027 $531,013
(6) RECLASSIFICATION
Pursuant to current state laws, treasury shares are treated as authorized, but
unissued. Accordingly, the Company cancelled all existing treasury shares and
recorded the cancellation as charges to paid-in capital and retained earnings
and a credit to treasury stock. At the time the shares previously recorded as
treasury shares were originally issued, (January 1, 1984), the book value per
share was $8.57. Upon cancellation of the treasury shares, the book value of
$8.57 was used to reduce the capital stock accounts ($.01 per share for common
stock and $8.56 per share for additional paid-in-capital), and the difference
between $8.57 and the cost per share at which the treasury shares were
repurchased was charged to retained earnings. All prior period statements
presented herein have been reclassified to reflect the cancellation of treasury
shares and to conform with current period presentation.
<PAGE>
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 $2.6 million, or $.90 per share for the first quarter of 1996, a
per share increase of 16.9% over the $2.2 million, or $.77 per share for the
comparable period in 1995. Operating revenue, which includes net interest
income and noninterest income, increased $948,000, or 8.1%, over the first
quarter of 1995, and was the most significant factor contributing to the
increase in earnings.
Dollars in thousands):
For The Three Months Ended March 31,
1996 1995
Interest Income $14,161 $12,764
Taxable Equivalent Adjustment(1) 441 390
Interest Income (FTE) 14,602 13,154
Interest Expense 5,095 4,442
Net Interest Income (FTE) 9,507 8,712
Provision for Loan Losses 261 274
Taxable Equivalent Adjustment 441 390
Net Int. Inc. After Provision 8,805 8,048
Noninterest Income 3,558 3,354
Noninterest Expense 8,778 8,360
Income Before Income Taxes 3,585 3,042
Income Taxes 1,018 854
Net Income $ 2,567 $ 2,188
Percent Change 17.32% (6.89)%
Return on Average Assets (2) 1.30% 1.20%
Return on Average Equity (2) 12.59% 12.07%
(1) Computed using a statutory tax rate of 34%
(2) Annualized
Net Interest Income
First quarter taxable equivalent net interest income increased $795,000, or
9.1%, over the comparable period for 1995. The increase is attributable to
growth in average earning assets, as the net interest margin and interest rate
spread were relatively stable for the comparative periods. Further, the first
quarter of 1996 included one additional day due to leap year which added
approximately $100,000 to net interest income. Table 1 on page 14 provides a
comparative analysis of the Company's average balances and interest rates.
Taxable-equivalent interest income increased $1.5 million, or 11.0%, due to
growth in the loan and securities portfolios. Loans, which generally represent
the Company's highest yielding asset, increased (on average) $29.7 million, or
<PAGE>
7.0%, while the securities portfolio increased $21.9 million, 11.1%. The
average yield on earning assets increased 15 basis points from 8.17% in the
first quarter of 1995 to 8.32% in 1996.
Interest expense increased $653,000, or 14.7%, due to deposit growth and a shift
in deposit mix. Average deposits increased $38.1 million, or 6.0%.
Certificates of deposits, which generally represent a higher cost of funds than
other deposit offerings, increased as a percent of average deposits from 34.7%
in the first quarter of 1995 to 38.3% in the first quarter of 1996, while
savings deposits decreased from 15.0% to 11.8%. While rates on transaction
accounts and savings declined, the average rate paid on certificates of deposits
during the first quarter of 1996 was 5.32%, versus 4.71% for the comparable
period in 1995. The higher rate paid on certificates of deposits, coupled with
a shift in the mix of deposits, resulted in a 22 basis point increase in the
average rate paid on interest bearing liabilities which rose from 3.61% in the
first quarter of 1995 to 3.83% in the first quarter of 1996.
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) decreased from 4.56% in the first quarter of 1995 to 4.49% in the
comparable quarter for 1996. The Company's net interest margin percentage
(defined as taxable-equivalent net interest income divided by average earning
assets) was unchanged at 5.42%. The decrease in the spread reflects the higher
costs of funds. The margin of 5.42% is a very favorable margin under current
market conditions. Rising interest rates could adversely affect the Company's
margin during the second quarter.
Provisions for Loan Losses
The provision for loan losses for the three months ended March 31, 1996, was
$261,000 versus $274,000 for the first quarter of 1995. Net charge-offs, while
up significantly from 1995, are still at a relatively low level and, as a
percent of average loans, are in line with past performance. Relative to year-
end, the reserve for loan losses decreased slightly to $6.4 million, and
represented 1.4% of total loans. Charge-off activity for the respective periods
is set forth below.
Three Months Ended
1996 1995
Net Charge-Offs $306,000 $105,000
Net Charge-Offs (Annualized) as a percent
of Average Loans Outstanding, Net of Unearned
Interest .28% .10%
Noninterest Income
Noninterest income increased $204,000, or 6.1%, over the first quarter of 1995,
which included gains in all major categories except income from fiduciary
activities. In January 1995, the Company changed its method of income
recognition for Capital City Trust Company ("CCTC") from cash to accrual. This
change resulted in a one-time adjustment which increased 1995 revenues by
$166,000. Although CCTC had a very strong first quarter in 1996, income from
fiduciary activities declined as a result of this one-time adjustment recognized
in January 1995.
Service charges on deposit accounts increased $196,000, or 14.8%. The increase
primarily reflects a higher level of activity subject to service charge
assessments and an increased emphasis on collections.
Compared to the first quarter of 1995, there were no significant variation in
the "Other" noninterest income category. However, within the category, there
<PAGE>
were a few variations which deserve mention. Increases in mortgage origination
fees of $77,000 and check printing income of $42,000, were offset by decreases
in bankcard merchant fees and real estate gains of $74,000 and $82,000,
respectively.
Noninterest income as a percent of average earning assets was 2.0% for the first
quarter of 1996 versus 2.1% for the comparable quarter in 1995.
Noninterest Expense
Noninterest expense in the first quarter of 1996 increased $418,000, or 5.0%,
over the first quarter of 1995. Compensation and occupancy expense were the
primary factors contributing to the overall increase.
Compensation expense increased $342,000, or 7.7%, reflecting annual raises of
less than 4.0%, in aggregate, and an increase in full-time equivalent employees
of 9.
Occupancy expense, including premises, furniture, fixtures and equipment
increased $77,000, or 5.4%. The increase is primarily attributable to
depreciation expense which is up $26,000 and Other FF&E expense which is up
$36,000.
Other noninterest expense was unchanged as compared to the first quarter of
1995. Although there was no net change, a reduction in FDIC insurance premiums
of approximately $360,000 was offset by increases in legal/professional fees of
$202,000, ORE related expense(including losses on the sale of ORE) of $98,000,
and courier service expense of $38,000.
Net noninterest expense (noninterest income minus noninterest expense) as a
percent of average earning assets was 3.0% in the first quarter of 1996 versus
3.1% for the first quarter of 1995. The Company's efficiency ratio (noninterest
expense expressed as a percent of the sum of net interest income plus
noninterest income) was 69.5% at March 31, 1996 compared to 71.6% at March 31,
1995. The reduction in the efficiency ratio is attributable to growth in
operating revenues.
<PAGE>
Income Taxes
The provision for income taxes increased $164,000, or 19.2%, over the first
quarter of 1995. The increase in the provision is attributable to higher
taxable income. The Company's effective tax rate for the first quarter of 1996
was 28.4% compared to 28.1% for the same quarter in 1995.
FINANCIAL CONDITION
The Company's average assets increased to $791.2 million in the first quarter of
1996 from $735.9 million in the first quarter of 1995. Average earning assets
were $705.5 million for the three months ended March 31, 1996 versus $652.3
million for the comparable quarter of 1995. Average loans were up $29.7
million, or 7.0%. Asset growth was funded primarily through an increase in
average deposits of $38.1 million, or 6.0%.
The investment portfolio is a significant component of the Company's operations
and, as such, it functions as a key element of liquidity and asset/liability
management. Securities in the Available-for-Sale portfolio are recorded at fair
value and unrealized gains and losses associated with these securities are
recorded, net of tax, as a separate component of shareholders' equity. At March
31, 1996, shareholders' equity included a net unrealized gain of $63,000
compared to $968,000 at December 31, 1995. The reduction in value reflects the
rise in interest rates during the month of March.
At March 31, 1996, the Company's nonperforming loans were $4.6 million versus
$4.7 million at year-end and $5.1 million at March 31, 1995. As a percent of
nonperforming loans, the allowance for loan losses represented 182.80% at March
31, 1996 versus 138.27% at December 31, 1995 and 156.0% at March 31, 1995.
Nonperforming loans include nonaccruing and restructured loans. Other real
estate, which includes property acquired either through foreclosure or by
receiving a deed in lieu of foreclosure, was $1.1 million at March 31, 1996,
versus $1.0 million at December 31, 1995, and $.7 million at March 31, 1995.
Average deposits increased 6.0% from $635.1 million in the first quarter of
1995, to $673.2 million in the first quarter of 1996. The growth in deposits
was primarily driven by deposit promotions which were initiated by the Company
during the second and fourth quarters of 1995. As a result of these promotions,
certificates of deposits represented $37.3 million, or 97.9%, of the $38.1
million growth in average total deposits. Certificates of deposits, as a
percent of average total deposits increased to 38.3% from 34.7% for the
comparable quarter in 1995.
The ratio of average noninterest bearing deposits to total deposits was 24.5%
for the first quarter of 1996 compared to 24.5% for the first quarter of 1995.
For the same periods, the ratio of average interest bearing liabilities to
average earning assets was 75.9% and 76.6%, respectively.
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 maturities,
securities held in the available-for-sale portfolio, and the ability to purchase
federal funds through established lines of credit with correspondent banks.
<PAGE>
The Company's equity capital was $82.3 million as of March 31, 1996 compared to
$81.2 million as of December 31, 1995. 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 10.20% at March
31, 1996 and December 31, 1995. Further, the Company's risk-adjusted capital
ratio of 19.14% at March 31, 1996, 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, 1996, 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 in the normal course of business.
During the first three months of 1996, shareholders' equity increased $1.1
million, or 5.6%, on an annualized basis. Growth in equity during the first
quarter was adversely impacted by a reduction of $905,000 in the Company's net
unrealized gain on available-for-sale securities, which declined from $968,000
at December 31, 1995 to $63,000 at March 31, 1996. The loss in value reflects
the rise in interest rates which occurred primarily during March 1996.
Additionally, shareholders' equity was reduced by $773,000 due to the
declaration and payment of a $.27 per share dividend during the first quarter.
Since its formation, Capital City Bank Group, Inc., has paid dividends on a
semi-annual basis. Going forward, management intends to declare and pay
dividends on a quarterly versus semi-annual basis.
At March 31, 1996, the Company's common stock had a book value of $28.75 per
share compared to $28.44 at December 31, 1995. Pursuant to the Company's stock
repurchase program adopted in 1989, the Company has repurchased 263,580 shares
of its common stock, and subsequently reissued 20,624 shares, primarily in
conjunction with associate stock plans. In the first quarter of 1996, there
were no shares repurchased and 8,571 shares were issued, a majority of which
represented performance awards issued in accordance with the Company's Stock
Incentive Plan and shares acquired under the Company's Associate Stock Purchase
Plan.
<PAGE>
<TABLE>
TABLE I
AVERAGES BALANCES & INTEREST RATES
(Taxable Equivalent Basis - Dollars in Thousands)
<CAPTION>
For Three Months Ended March 31 1996 1995
Average Average Average Average
Balance Interest Rate Balance Interest Rate
<S> <C> <C> <C> <C> <C> <C>
ASSETS
Loans, Net of Unearned Interest $452,579 10,710 9.52% $422,880 9,749 9.35%
Taxable Investment Securities 142,307 2,124 6.00% 128,478 1,710 5.40%
Tax-Exempt Investment Securities 76,053 1,310 6.93% 67,990 1,217 7.26%
Funds Sold 34,578 458 5.33% 32,909 478 5.89%
Total Earning Assets 705,517 14,602 8.32% 652,257 13,154 8.18%
Cash & Due From Banks 49,772 51,071
Allowance for Loan Losses (6,506) (7,646)
Other Assets 42,411 40,283
TOTAL ASSETS $791,194 $735,965
LIABILITIES
NOW Accounts $ 99,117 $ 432 1.75% $ 93,424 $ 529 2.30%
Money Market Accounts 72,217 524 2.92% 70,750 541 3.10%
Savings Accounts 79,219 407 2.07% 95,217 578 2.46%
Other Time Deposits 257,485 3,407 5.32% 220,230 2,557 4.71%
Total Interest Bearing Deposits 508,038 4,770 3.78% 479,621 4,205 3.56%
Funds Purchased 23,986 283 4.75% 18,647 225 4.90%
Other Short-Term Borrowings 1,310 12 3.68% 1,251 12 3.89%
Long-Term Debt 1,927 30 6.26% - - -
Total Int. Bearing Liabilities 535,261 5,095 3.83% 499,519 4,442 3.61%
Noninterest Bearing Deposits 165,193 155,528
Other Liabilities 8,737 7,428
TOTAL LIABILITIES 709,191 662,475
SHAREHOLDERS' EQUITY
Common Stock 31 31
Surplus 5,873 5,863
Retained Earnings 76,099 67,596
TOTAL SHAREHOLDERS' EQUITY 82,003 73,490
TOTAL LIABILITIES & EQUITY $791,194 $735,965
Net Interest Rate Spread 4.49% 4.56%
Net Interest Income $9,507 $8,712
Net Interest Margin 5.42% 5.42%
<F1>
(1) Average balances include nonaccrual loans. Interest income includes fees on
loans of approximately $476,000 and $459,000, for the three months ended March 31, 1996 and 1995, respectively.
<F2>
(2) Interest income includes the effects of taxable equivalent adjustments using
a 34% tax rate.
</TABLE>
<PAGE>
PART II. OTHER INFORMATION
Items 1-4.
Not applicable
Item 5. Other Information
At a special meeting of stockholders held on April 25, 1996, First Financial
Bancorp, Inc. stockholders' approved the Agreement and Plan of Merger pursuant
to which First Financial would be acquired by Capital City Bank Group, Inc. The
stockholder approval, in combination with CCBG's recent receipt of all required
regulatory approvals which are necessary to consummate the acquisition of First
Financial under the terms of the acquisition agreement, completes the actions
which are needed to be taken by third parties to permit consummation of the
transaction, which remains subject to certain customary closing conditions. The
parties have agreed to close the transaction on July 1, 1996 in order to permit
a smooth transition for customers of First Federal Bank and Capital City Bank,
which will be combined after CCBG's acquisition of First Financial.
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, 1996.
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 13, 1996
WARNING: THE EDGAR SYSTEM ENCOUNTERED ERROR(S) WHILE PROCESSING THIS SCHEDULE.
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