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:
September 30, 2000
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 office) (Zip Code)
Registrant's telephone number, including area code:
(850) 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 October 31, 2000, there were 10,192,335 shares of the
Registrant's Common Stock, $.01 par value, outstanding.
<PAGE>
CAPITAL CITY BANK GROUP, INC.
FORM 10-Q I N D E X
ITEM PART I. FINANCIAL INFORMATION PAGE NUMBER
---- ----------------------------- -----------
1. Consolidated Financial Statements 3
2. Management's Discussion and Analysis of
Financial Condition and Results of Operations 10
3. Quantitative and Qualitative Disclosure of Market Risk 18
ITEM PART II. OTHER INFORMATION
---- --------------------------
1. Legal Proceedings Not Applicable
2. Changes in Securities and Use of Proceeds Not Applicable
3. Defaults Upon Senior Securities Not Applicable
4. Submission of Matters to a Vote of
Security Holders Not Applicable
5. Other Information 20
6. Exhibits and Reports on Form 8-K 20
Signatures 20
<PAGE>
PART I. FINANCIAL INFORMATION
ITEM 1. CONSOLIDATED FINANCIAL STATEMENTS
<TABLE>
CAPITAL CITY BANK GROUP, INC.
CONSOLIDATED STATEMENTS OF INCOME
FOR THE PERIODS ENDED SEPTEMBER 30
(UNAUDITED)
(Dollars In Thousands, Except Per Share Amounts)
<CAPTION>
THREE MONTHS ENDED NINE MONTHS ENDED
SEPTEMBER 30, SEPTEMBER 30,
2000 1999 2000 1999
------- ------- ------- -------
<S> <C> <C> <C> <C>
INTEREST INCOME
Interest and Fees on Loans $24,061 $19,912 $67,765 $58,052
Investment Securities:
U.S. Treasury 143 343 552 1,100
U.S. Gov. Agencies/Corp. 2,114 2,317 6,575 7,002
States and Political Subdivisions 981 1,099 3,079 3,253
Other Securities 581 614 1,777 1,870
Funds Sold 138 950 870 3,042
------- ------- ------- -------
Total Interest Income 28,018 25,236 80,618 74,319
INTEREST EXPENSE
Deposits 10,452 9,495 29,274 28,942
Short-Term Borrowings 1,391 513 3,380 1,244
Long-Term Debt 196 279 632 890
------- ------- ------- -------
Total Interest Expense 12,039 10,287 33,286 31,076
------- ------- ------- -------
Net Interest Income 15,979 14,949 47,332 43,243
Provision for Loan Losses 735 610 2,295 1,930
------- ------- ------- -------
Net Interest Income After
Provision for Loan Losses 15,244 14,339 45,037 41,313
NONINTEREST INCOME
Service Charges on Deposit Accounts 2,366 2,572 7,017 7,473
Data Processing 630 690 1,960 2,184
Income from Fiduciary Activities 525 560 1,785 1,522
Securities Transactions - - 2 -
Other 3,125 2,897 8,959 8,727
------- ------- ------- -------
Total Noninterest Income 6,646 6,719 19,723 19,906
------- ------- ------- -------
NONINTEREST EXPENSE
Salaries and Associate Benefits 7,565 7,347 22,605 22,429
Occupancy, Net 1,169 1,169 3,377 3,317
Furniture and Equipment 1,484 1,368 4,355 4,159
Merger Expenses (2) 74 749 1,351
Other 4,466 4,638 13,202 14,099
------- ------- ------- -------
Total Noninterest Expense 14,682 14,596 44,288 45,355
------- ------- ------- -------
Income Before Income Tax 7,208 6,462 20,472 15,864
Income Tax Expense 2,487 2,089 6,971 4,931
------- ------- ------- -------
NET INCOME $ 4,721 $ 4,373 $13,501 $10,933
======= ======= ======= =======
Net Income Per Basic Share $ .46 $ .43 $ 1.32 $ 1.07
======= ======= ======= =======
Net Income Per Diluted Share $ .46 $ .43 $ 1.32 $ 1.07
======= ======= ======= =======
Cash Dividends Per Share(1) $ .1325 $ .12 $ .3975 $ .42
======= ======= ======= =======
Average Basic Shares Outstanding 10,192,009 10,179,138 10,194,294 10,173,490
========== ========== ========== ==========
Average Diluted Shares Outstanding 10,207,540 10,194,669 10,209,825 10,189,021
========== ========== ========== ==========
(1) The dividend for the nine months ended September 30, 1999 includes a one-time
distribution paid to Grady Holding Company shareowners of approximately $563,000.
</TABLE>
<PAGE>
CAPITAL CITY BANK GROUP, INC.
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
AS OF SEPTEMBER 30, 2000 AND DECEMBER 31, 1999
(Dollars In Thousands, Except Per Share Amounts)
September 30, December 31,
2000 1999
(Unaudited) (Audited)
------------- ------------
ASSETS
Cash and Due From Banks $ 60,774 $ 79,454
Funds Sold 3,809 13,618
Investment Securities, Available-for-Sale 282,446 321,192
Loans, Net of Unearned Interest 1,060,369 928,486
Allowance for Loan Losses (10,653) (9,929)
---------- -----------
Loans, Net 1,049,716 918,557
Premises and Equipment, Net 36,827 37,834
Intangibles 22,994 25,149
Other Assets 35,570 34,716
---------- ----------
Total Assets $1,492,136 $1,430,520
========== ==========
LIABILITIES
Deposits
Noninterest Bearing Deposits $ 287,295 $ 253,140
Interest Bearing Deposits 942,665 949,518
---------- ----------
Total Deposits 1,229,960 1,202,658
Short-Term Borrowings 88,633 66,275
Long-Term Debt 11,408 14,258
Other Liabilities 18,443 15,113
---------- ----------
Total Liabilities 1,348,444 1,298,304
SHAREOWNERS' EQUITY
Preferred Stock, $.01 par value,
3,000,000 shares authorized, no
shares outstanding - -
Common Stock, $.01 par value; 90,000,000
shares authorized; 10,192,332 shares
outstanding at September 30, 2000
and 10,190,069 outstanding at
December 31, 1999 102 102
Additional Paid In Capital 9,363 9,249
Retained Earnings 138,503 129,055
Net Unrealized Gain on
Available-for-Sale Securities (4,276) (6,190)
---------- ----------
Total Shareowners' Equity 143,692 132,216
---------- ----------
Total Liabilities and Shareowners' Equity $1,492,136 $1,430,520
========== ==========
<PAGE>
CAPITAL CITY BANK GROUP, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
FOR THE NINE MONTH PERIODS ENDED SEPTEMBER 30
(Dollars In Thousands)
2000 1999
(Unaudited) (Unaudited)
----------- -----------
CASH FLOWS FROM OPERATING ACTIVITIES
------------------------------------
Net Income $ 13,501 $ 10,933
Adjustments to Reconcile Net Income to
Cash Provided by Operating Activities:
Provision for Loan Losses 2,295 1,930
Depreciation 3,004 2,690
Net Securities Amortization 1,034 1,040
Amortization of Intangible Assets 2,136 2,084
Gain on Sales of Investment Securities (2) -
Non-Cash Compensation 76 234
Net Increase in Interest Receivable (1,096) (1,139)
Net (Increase) Decrease in Other Assets (837) 827
Net Increase (Decrease) in Other Liabilities 3,331 383
-------- --------
Net Cash Provided by Operating Activities 23,442 18,990
-------- --------
CASH FLOWS FROM INVESTING ACTIVITIES
------------------------------------
Proceeds from Payments/Maturities of
Investment Securities Available-for-Sale 41,217 88,976
Purchase of Investment Securities
Available-for-Sale (492) (57,646)
Net Increase in Loans (133,454) (57,466)
Purchase of Premises & Equipment (2,061) (3,725)
Sales of Premises & Equipment 65 152
-------- --------
Net Cash Used in Investing Activities (94,725) (29,709)
-------- --------
CASH FLOWS FROM FINANCING ACTIVITIES
------------------------------------
Net (Decrease) Increase in Deposits 27,302 (30,213)
Net Increase (Decrease) in Short-Term Borrowings 22,357 27,309
Borrowing from Long-Term Debt 928 2,262
Repayment of Long-Term Debt (3,778) (6,560)
Dividends Paid (4,053) (4,369)
Issuance of Common Stock 38 218
-------- --------
Net Cash Provided by (Used in) Financing Activities 42,794 (11,353)
-------- --------
Net (Decrease) Increase in Cash and
Cash Equivalents (28,489) (22,072)
Cash and Cash Equivalents at Beginning of
Period 93,072 141,023
-------- --------
Cash and Cash Equivalents at End of Period $ 64,583 $118,951
======== ========
Supplemental Disclosure:
Interest Paid on Deposits $ 30,066 $ 28,678
======== ========
Interest Paid on Debt $ 4,159 $ 2,179
======== ========
Transfer of Loans to ORE $ 818 $ 1,375
======== ========
Income Taxes Paid $ 8,718 $ 5,536
======== ========
<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 S-X
and S-K of the Securities and Exchange Commission. Certain information and
footnote disclosures normally included in financial statements prepared in
accordance with accounting principles generally accepted in the United
States 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, including restatement to reflect the pooling-of-interests of
Grady Holding Company and its subsidiaries.
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
September 30, 2000 and December 31, 1999, the results of operations for the
three and nine month periods ended September 30, 2000 and 1999, and cash
flows for the nine month periods ended September 30, 2000 and 1999.
The Company and its subsidiaries follow accounting principles generally
accepted in the United States and reporting practices applicable to the
banking industry. The principles which materially affect its financial
position, results of operations and cash flows are set forth in Notes to
Consolidated Financial Statements which are included in the Company's 1999
Annual Report and Form 10-K.
(2) INVESTMENT SECURITIES
---------------------
The carrying value and related market value of investment securities at
September 30, 2000 and December 31, 1999 were as follows (dollars in
thousands):
September 30, 2000
-------------------------------------------
Amortized Unrealized Unrealized Market
Available-For-Sale Cost Gains Losses Value
------------------ --------- ---------- ---------- --------
U.S. Treasury $ 10,020 $ - $ 48 $ 9,972
U.S. Government Agencies
and Corporations 72,061 2 1,617 70,446
States and Political
Subdivisions 90,490 60 1,441 89,109
Mortgage Backed Securities 76,419 60 2,823 73,656
Other Securities 40,207 - 944 39,263
-------- ---- ------ --------
Total $289,197 $122 $6,873 $282,446
======== ==== ====== ========
December 31, 1999
-------------------------------------------
Amortized Unrealized Unrealized Market
Available-For-Sale Cost Gains Losses Value
------------------ --------- ---------- ---------- --------
U.S. Treasury $ 20,047 $ 4 $ 70 $ 19,981
U.S. Government Agencies
and Corporations 79,181 - 2,557 76,624
States and Political
Subdivisions 104,312 74 1,895 102,491
Mortgage Backed Securities 85,040 88 3,728 81,400
Other Securities 42,372 - 1,676 40,696
-------- ---- ------ --------
Total $330,952 $166 $9,926 $321,192
======== ==== ====== ========
<PAGE>
(3) LOANS
-----
The composition of the Company's loan portfolio at September 30, 2000 and
December 31, 1999 was as follows (dollars in thousands):
September 30, 2000 December 31, 1999
------------------ -----------------
Commercial, Financial
and Agricultural $ 130,121 $100,228
Real Estate-Construction 72,573 62,166
Real Estate-Mortgage 225,508 214,036
Real Estate - Residential 452,718 383,536
Consumer 179,449 168,520
---------- --------
Loans, Net of Unearned Interest $1,060,369 $928,486
========== ========
(4) ALLOWANCE FOR LOAN LOSSES
-------------------------
An analysis of the changes in the allowance for loan losses for the nine
month period ended September 30, 2000 and 1999, is as follows (dollars in
thousands):
September 30, 2000 September 30,1999
------------------ -----------------
Balance, Beginning of the Period $ 9,929 $ 9,827
Provision for Loan Losses 2,295 1,930
Recoveries on Loans Previously
Charged-Off 524 556
Loans Charged-Off (2,095) (2,278)
------- -------
Balance, End of Period $10,653 $10,035
======= =======
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):
September 30,
--------------------------------------------
2000 1999
------------------- --------------------
Impaired Loans: Valuation Valuation
Balance Allowance Balance Allowance
------------------- --------------------
With Related Credit Allowance $ - $- $ 120 $10
Without Related Credit Allowance 1,522 - 276 -
Average Recorded Investment
for the Period 1,866 N/A 1,986 N/A
Interest Income:
Recognized $ 72 $ 70
Collected $ 72 $ 55
The Company recognizes income on nonaccrual 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 September 30,
2000 and December 31, 1999 was as follows (dollars in thousands):
September 30, 2000 December 31, 1999
------------------ -----------------
NOW Accounts $177,708 $182,794
Money Market Accounts 158,644 157,825
Savings Deposits 105,455 105,498
Other Time Deposits 500,858 503,401
-------- --------
Total Interest Bearing Deposits $942,665 $949,518
======== ========
<PAGE>
(6) ACCOUNTING PRONOUNCEMENTS
-------------------------
In June 1998, the Financial Accounting Standards Board "FASB" issued
Statement of Financial Accounting Standards "SFAS" No. 133 "Accounting for
Derivative Instruments and Hedging Activities". The statement establishes
accounting and reporting standards for derivative instruments (including
certain derivative instruments imbedded in other contracts). The statement
is effective for fiscal years beginning after June 15, 2000. The adoption
of this standard is not expected to have a material impact on reported
results of operations of the Company.
(7) COMPREHENSIVE INCOME
--------------------
Total comprehensive income is defined as net income and all other changes
in equity which, for Capital City Bank Group, consists solely of changes in
unrealized gains (losses) on available-for-sale securities. The Company
reported total comprehensive income, net of tax, for the three and nine
month periods ended September 30, 2000 and 1999, as follows (dollars in
thousands):
<TABLE>
THREE MONTHS ENDED NINE MONTHS ENDED
------------------ -------------------
SEPTEMBER 30 SEPTEMBER 30
------------ ------------
2000 1999 2000 1999
------ ------ ------- -------
<S> <C> <C> <C> <C>
Net Income $4,721 $4,373 $13,501 $10,933
Other Comprehensive Income, Net of Tax
Unrealized Gains (Losses) on Securities:
Unrealized (Losses) Gains on Securities
Arising During the Period 2,342 (1,119) 1,914 (5,585)
Less: Reclassification Adjustments for
Gains (Losses) Included in Net Income - - 2 -
------ ------ ------- -------
Total Unrealized Gains (Losses)
On Securities , Net of Tax 2,342 (1,119) 1,916 (5,585)
------ ------ ------- -------
Total Comprehensive Income, Net of Tax $7,063 $3,254 $15,417 $ 5,348
</TABLE>
These changes reflect a market value increase in available-for-sale
securities for the three and nine months ended September 30, 2000, and a
market value decrease for the three and nine months ended September 30,
1999.
(8) ACQUISITIONS
------------
On October 3, 2000, the Company entered into a definitive purchase and
assumption agreement with First Union National Bank ("First Union") to
acquire five of First Union's branch offices which includes loans and
deposits. The transaction will create approximately $13 million in
intangible assets. The Company agreed to purchase approximately $26
million in loans and assume deposits of approximately $109 million. The
transaction will be consummated during the first quarter of 2001.
On September 26, 2000, the Company entered into a definitive agreement to
acquire First Bankshares of West Point, Inc. and its subsidiary First
National Bank of West Point. First National Bank of West Point is a $155
million financial institution with offices located in West Point, Georgia,
and two offices in the Greater Valley area of Alabama. The Company will
issue 3.6419 shares and $17.75 in cash for each of the 192,481 shares of
First Bankshares of West Point, Inc. The transaction will close in the
first quarter of 2001 and will be accounted for as a purchase.
On May 7, 1999, the Company completed its acquisition of Grady Holding
Company and its subsidiary, First National Bank of Grady County in Cairo,
Georgia. FNBGC is a $114 million asset institution with offices in Cairo
and Whigham, Georgia. The Company issued 21.50 shares for each of the
60,910 shares of FNBGC. The consolidated financial statements of the
Company give effect to the merger which has been accounted for as a pooling-
of-interests. Accordingly, financial statements for the prior periods have
been restated to reflect the results of operations of these entities on a
combined basis from the earliest period presented.
<PAGE>
<TABLE>
QUARTERLY FINANCIAL DATA (UNAUDITED)
(Dollars in Thousands, Except Per Share Data)
<CAPTION>
2000 1999 1998
---------------------------------- ------------------------------------------- ----------
Third Second First Fourth Third Second First Fourth
---------- ---------- ---------- ---------- ---------- ---------- ---------- ----------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Summary of Operations:
Interest Income $ 28,018 $ 26,889 $ 25,710 $ 25,366 $ 25,236 $ 24,816 $ 24,267 $ 22,904
Interest Expense 12,039 11,070 10,176 10,171 10,287 10,476 10,313 9,224
---------- ---------- ---------- ---------- ---------- ---------- ---------- ----------
Net Interest Income 15,979 15,819 15,534 15,195 14,949 14,340 13,954 13,680
Provision for
Loan Loss 735 950 610 510 610 580 740 657
---------- ---------- ---------- ---------- ---------- ---------- ---------- ----------
Net interest Income
After Provision
for Loan Loss 15,244 14,869 14,924 14,685 14,339 13,760 13,214 13,023
Noninterest Income 6,646 6,675 6,402 6,654 6,719 6,634 6,553 6,710
Merger Expense (2) 751 - 10 74 1,277 - 115
Noninterest Expense 14,684 14,503 14,352 14,462 14,522 15,040 14,442 13,600
---------- ---------- ---------- ---------- ---------- ---------- ---------- ----------
Income Before
Provision for
Income Taxes 7,208 6,290 6,974 6,867 6,462 4,077 5,325 6,018
Provision for
Income Taxes 2,487 2,123 2,361 2,548 2,089 1,182 1,660 2,146
---------- ---------- ---------- ---------- ---------- ---------- ---------- ----------
Net Income $ 4,721 $ 4,167 $ 4,613 $ 4,319 $ 4,373 $ 2,895 $ 3,665 $ 3,872
========== ========== ========== ========== ========== ========== ========== ==========
Net Interest
Income (FTE) $ 16,364 $ 16,217 $ 15,962 $ 15,521 $ 15,435 $ 14,822 $ 14,420 $ 14,046
Per Common Share:
Net Income Basic $ .46 $ .41 $ .45 $ .42 $ .43 $ .28 $ .36 $ .39
Net Income Diluted .46 .41 .45 .42 .43 .28 .36 .39
Dividends Declared(1) .1325 .1325 .1325 .1325 .12 .12 .18 .12
Book Value 14.08 13.51 13.20 12.96 12.78 12.56 12.80 12.65
Market Price:
High 20.50 20.50 23.00 25.00 30.00 25.00 27.63 31.00
Low 18.75 18.00 15.00 20.19 21.00 20.25 22.00 24.13
Close 19.56 19.50 19.63 21.50 22.75 25.00 23.31 27.63
Selected Average
Balances:
Total Assets $1,465,455 $1,454,098 $1,430,620 $1,446,815 $1,446,505 $1,452,215 $1,430,533 $1,257,934
Earning Assets 1,318,698 1,303,633 1,277,894 1,280,746 1,297,481 1,304,093 1,282,679 1,131,933
Loans 1,025,943 989,695 938,351 915,194 892,161 878,976 850,161 834,315
Total Deposits 1,203,254 1,202,770 1,198,608 1,235,002 1,234,360 1,247,452 1,232,816 1,059,192
Total Shareowners'
Equity 141,847 137,014 133,836 131,932 130,134 131,234 130,929 128,250
Common Equivalent
Shares:
Basic 10,192 10,196 10,195 10,179 10,179 10,172 10,170 10,158
Diluted 10,208 10,211 10,211 10,201 10,195 10,187 10,185 10,179
Ratios:
ROA 1.28% 1.15% 1.30% 1.18% 1.20% .80% 1.04% 1.22%
ROE 13.24% 12.23% 13.86% 12.99% 13.33% 8.85% 11.35% 11.98%
Net Interest
Margin (FTE) 4.94% 5.00% 5.02% 4.82% 4.73% 4.56% 4.56% 4.92%
Efficiency Ratio 60.64% 60.30% 60.91% 60.67% 62.30% 61.70% 65.46% 63.50%
(1) First quarter 1999 dividend includes a one-time distribution paid to Grady Holding Company shareowners of
approximately $563,000.
</TABLE>
<PAGE>
ITEM 2. MANAGEMENT'S DISCUSSION AND RESULTS OF OPERATIONS
AND ANALYSIS OF FINANCIAL CONDITION
The following analysis reviews important factors affecting the financial
condition and results of operations of Capital City Bank Group, Inc., for
the periods shown below. The Company has made, and may continue to make,
various forward-looking statements with respect to financial and business
matters that involve numerous assumptions, risks and uncertainties. The
following is a list of factors, among others, that could cause actual
results to differ materially from the forward-looking statements: general
and local economic conditions, competition for the Company's customers from
other banking and financial institutions, government legislation and
regulation, changes in interest rates, the impact of rapid growth,
significant changes in the loan portfolio composition, and other risks
described in the Company's filings with the Securities and Exchange
Commission, all of which are difficult to predict and many of which are
beyond the control of the Company.
The following discussion sets forth the major factors that have affected
the Company's results of operations and financial condition and should be
read in conjunction with the accompanying consolidated financial
statements. All prior period financial information has been restated to
reflect the pooling-of-interests of Grady Holding Company and its
subsidiaries. The year-to-date averages used in this report are based on
daily balances for each respective period.
The Financial Review is divided into three subsections entitled Earnings
Analysis, Financial Condition, and Liquidity and Capital Resources.
Information therein should facilitate a better understanding of the major
factors and trends which affect the Company's earnings performance and
financial condition, and how the Company's performance during 2000 compares
with prior years. Throughout this section, Capital City Bank Group, Inc.,
and its subsidiaries, collectively, are referred to as "CCBG" or the
"Company." The two subsidiary banks are referred to as the "Capital City
Bank" or "CCB", and "First National Bank of Grady County" or "FNBGC".
On October 3, 2000, the Company entered into a definitive purchase and
assumption agreement with First Union National Bank ("First Union") to
acquire five of First Union's branch offices which includes loans and
deposits. The transaction will create approximately $13 million in
intangible assets. The Company agreed to purchase approximately $26
million in loans and assume deposits of approximately $109 million. The
transaction will be consummated during the first quarter of 2001.
On September 26, 2000, the Company entered into a definitive agreement to
acquire First Bankshares of West Point, Inc. and its subsidiary First
National Bank of West Point. First National Bank of West Point is a $155
million financial institution with offices located in West Point, Georgia,
and two offices in the Greater Valley area of Alabama. The Company will
issue 3.6419 shares and $17.75 in cash for each of the 192,481 shares of
First Bankshares of West Point, Inc. The transaction will close in the
first quarter of 2001 and will be accounted for as a purchase.
On March 30, 2000, the Company announced the authorization to repurchase
500,000 shares of its outstanding common stock. The purchases will be made
in the open market or in privately negotiated transactions. To date, the
Company has acquired 36,000 shares.
On May 7, 1999, the Company completed its acquisition of Grady Holding
Company and its subsidiary, First National Bank of Grady County in Cairo,
Georgia. FNBGC is a $114 million asset institution with offices in Cairo
and Whigham, Georgia. The Company issued 21.50 shares for each of the
60,910 shares of FNBGC. The consolidated financial statements of the
Company give effect to the merger which has been accounted for as a pooling-
of-interests. Accordingly, financial statements for the prior periods have
been restated to reflect the results of operations of these entities on a
combined basis from the earliest period presented.
<PAGE>
RESULTS OF OPERATIONS
Net Income
----------
Earnings, including the effects of merger-related expenses and intangible
amortization, for the three and nine months ended September 30, 2000 were
$4.7 million, or $0.46 per diluted share and $13.5 million, or $1.32 per
diluted share. This compares to $4.4 million, or $0.43 per diluted share
and $10.9 million, or $1.07 per diluted share in 1999. At September 30,
2000, merger-related expenses, net of taxes, totaled $475,000, or $0.05 per
diluted share, versus $879,000, or $.09 per diluted share for the
comparable period in 1999. Amortization of intangible assets, net of
taxes, for the first nine months in 2000 and 1999 totaled $1.4 million, or
$0.14 per diluted share.
In 2000, excluding merger-related expenses, net income for the three and
nine month periods ended September 30, 2000 increased $286,000, or 6.5%,
and $2.2 million, or 18.7%, respectively, due primarily to revenue growth.
Operating revenues (defined as taxable equivalent net interest income plus
noninterest income) in 2000 grew $1.3 million, or 6.0%, and $5.0 million,
or 8.0%, respectively, over the three and nine month periods in 1999.
This and other factors are discussed throughout the Financial Review. A
condensed earnings summary is presented below.
Three Months Ended Nine Months Ended
September 30, September 30,
------------------ -------------------
2000 1999 2000 1999
------- ------- ------- -------
Interest and Dividend Income $28,018 $25,236 $80,618 $74,319
Taxable Equivalent Adjustment(1) 385 486 1,210 1,435
------- ------- ------- -------
Interest Income 28,403 25,722 81,828 75,754
Interest Expense 12,039 10,287 33,286 31,076
------- ------- ------- -------
Net Interest Income (FTE) 16,364 15,435 48,542 44,678
Provision for Loan Losses 735 610 2,295 1,930
Taxable Equivalent Adjustment 385 486 1,210 1,435
------- ------- ------- -------
Net Interest Income
After Provision 15,244 14,339 45,037 41,313
Noninterest Income 6,646 6,269 19,723 18,557
Merger Expense (2) 74 749 1,351
Noninterest Expense 14,684 14,072 43,539 42,656
------- ------- ------- -------
Income Before Income Taxes 7,208 6,462 20,472 15,863
Income Taxes 2,487 2,089 6,971 4,930
------- ------- ------- -------
Net Income $ 4,721 $ 4,373 $13,501 $10,933
======= ======= ======= =======
Percent Change over comparable
prior year period 7.95% 14.91% 23.49% (4.28)%
Return on Average Assets(2) 1.28% 1.21% 1.24% 1.01%
Return on Average Equity(2) 13.24% 13.48% 13.11% 11.18%
(1) Computed using a statutory tax rate of 35%
(2) Annualized
Net Interest Income
-------------------
Third quarter taxable equivalent net interest income increased $929,000, or
6.0%, over the comparable quarter in 1999. Taxable equivalent net interest
income for the nine month period of 2000 increased $3.9 million, or 8.6%,
over the same period of 1999. This increase in both periods is
attributable to a higher level of earning assets. Table I on page 17
provides a comparative analysis of the Company's average balances and
interest rates.
<PAGE>
For the three and nine month periods ended September 30, 2000, taxable-
equivalent interest income increased $2.7 million, or 10.4%, and $6.1
million, or 8.0%, respectively, over the comparable prior year periods.
Loans which represent the Company's highest yielding asset, increased (on
average) $110.9 million, or 12.7% and represented 75.7% of total earning
assets for the nine months ended September 30, 2000 versus 67.5% for the
comparable period in 1999. Partially offsetting this increase was a
decline in income from investment securities and funds sold. Rising
interest rates and the favorable shift in mix contributed to a 59 basis
point increase in the yield on earning assets which increased from 7.82%
during the first nine months of 1999 to 8.41% for the comparable period in
2000.
Interest expense for the three and nine month periods ended September 30,
2000, increased $1.8 million, or 17.0%, and $2.2 million, or 7.1%,
respectively, over the comparable prior year periods. The average rate
paid on interest bearing liabilities increased 32 basis points as a result
of rising interest rates and increased competition for deposits.
Certificates of deposit, which generally represent a higher cost deposit
product to the Company, decreased from 44.9% of average deposits in the
nine months of 1999 to 41.2% in 2000.
The Company's interest rate spread (defined as the average federal taxable
equivalent yield on earning assets less the average rate paid on interest
bearing liabilities) increased from 3.80% in the first nine months of 1999
to 4.07% in the comparable period of 2000 due to the higher yield on
earning assets. The Company's net interest margin percentage (defined as
taxable-equivalent net interest income divided by average earning assets)
was 4.94% and 4.99%, respectively, for the three and nine months ended of
2000, versus 4.73% and 4.61%, respectively, for the comparable periods in
1999. The increase in margin from 1999 to 2000 reflects the higher yield on
earning assets resulting from the favorable shift in the mix of earning
assets.
Provision for Loan Losses
-------------------------
The provision for loan losses was $735,000 and $2.3 million, respectively,
for the three and nine month periods ended September 30, 2000, compared to
$610,000 and $1.9 million for the comparable periods in 1999. Net charge-
offs in 2000 were down slightly from the first nine months of 1999, and
remain at low levels relative to the size of the loan portfolio. The
higher provision reflects the significant increase in the loan portfolio
during the first nine months of 2000. Nonperforming loans increased
$207,000, or 6.5%, during the first nine months of 2000. The Company's
nonperforming asset ratio, however, decreased from .42% at year-end to .40%
at September 30, 2000. As compared to year-end, the reserve for loan
losses increased to $10.7 million, and represented 1.00% of total loans
versus 1.07% at the prior year-end.
For a discussion of the Company's nonperforming loans, refer to the section
entitled "Financial Condition."
Based on current economic conditions, the low level of nonperforming loans
and net charge-offs, it is management's opinion that the reserve for loan
losses as of September 30, 2000, is sufficient to provide for losses
inherent in the portfolio as of that date.
<PAGE>
Charge-off activity for the respective periods is set forth below:
Three Months Ended Nine Months Ended
(dollars in thousands) September 30, September 30,
---------------------- ------------------------
2000 1999 2000 1999
-------- -------- ---------- ----------
Net Charge-Offs $560,000 $634,000 $1,571,000 $1,722,000
Net Charge-Offs (Annualized)
as a percent of Average
Loans Outstanding, Net of
Unearned Interest .22% .28% .21% .26%
Noninterest Income
------------------
Noninterest income decreased $73,000, or 1.1%, in the third quarter of 2000
versus the comparable quarter for 1999, and $183,000, or 0.9%, for the nine
months ended September 30, 2000 versus the comparable period for 1999. For
the nine months ended September 30, 2000, trust fees and other income
posted higher revenues, while service charges and data processing revenues
declined.
Service charges on deposit accounts decreased $207,000, or 8.0%, and
$457,000, or 6.1%, respectively, over the comparable three and nine month
periods for 2000. Service charge revenues in any one year are dependent on
the number of accounts, primarily transaction accounts, and the level of
activity subject to service charges. The decrease in the first nine months
in 2000 compared to 1999, reflects higher compensating balances and a
decline in the number of transaction accounts.
Data processing revenues decreased $60,000, or 8.6%, and $224,000, or
10.3%, respectively, over the comparable three and nine month periods in
1999. The decrease reflects lower processing revenues associated with
government agencies.
Revenue from trust activities decreased $35,000, or 6.3%, compared to the
third quarter of 1999, and increased $263,000, or 17.3%, over the
comparable nine month period in 1999. The increase in revenues during the
first three quarters of 2000 is attributable to growth in managed assets.
At September 30, 2000, assets under management totaled $328.5 million
compared to $279.8 million at September 30, 1999.
Other income increased $228,000, or 7.9%, and $231,000, or 2.7%,
respectively, for the three and nine month periods ended September 30,
2000, over the comparable prior year periods. The increase is partially
attributable to higher credit card merchant fees of $270,000, retail
banking fees of $226,000, and interchange commissions of $278,000. Gains
on the sale of residential real estate loans decreased $527,000,
attributable to the higher interest rate environment, resulting in fewer
fixed rate loans being originated and sold in the secondary market as
compared to the prior year. Subsequent to first quarter, however, the
percentage mix of fixed rate loans has been increasing.
Noninterest income as a percent of average assets was 1.82% and 1.84%,
respectively, for the first nine months of 2000 and 1999.
Noninterest Expense
-------------------
Noninterest expense increased $86,000, or 0.6%, and decreased $1.1 million,
or 2.4%, respectively, over the comparable three and nine month periods in
1999. The decrease primarily reflects lower merger-related expense and
initiatives undertaken by management to streamline operating costs.
Compensation expense increased $219,000, or 3.0%, and $176,000, or 0.8%,
respectively, over the comparable three and nine month periods of 1999,
reflecting a increase in total salaries and associate insurance. Partially
offsetting the increase was a decline in other compensation and pension
expense.
<PAGE>
Occupancy expense, including premises, furniture, fixtures and equipment
increased $116,000, or 4.6%, and $257,000, or 3.4%, respectively, over the
comparable three and nine month periods in 1999. Depreciation expense,
utilities and other FF&E increased $307,000, $14,000 and $104,000,
respectively, for the comparable nine month periods. These increases were
partially offset by a decline in maintenance and repairs costs of $176,000.
Merger expense of $749,000 for the nine month period ended September 30,
2000, decreased $602,000 from the comparable periods in 1999. Costs
attributable to the acquisition of Grady Holding Company and its
subsidiaries were recognized in the second quarter of both years.
Other noninterest expense (excluding merger related costs) decreased
$173,000, or 3.7%, and $898,000, or 6.4%, respectively, over the comparable
three and nine month periods in 1999. The decrease is primarily due to a
reduction in telephone, postage and the elimination of the Florida
intangible tax. The decline in telephone costs is attributable to the
completion of the wide-area network.
Annualized net noninterest expense (noninterest income minus noninterest
expense, net of intangibles and merger expense) as a percent of average
assets was 1.99% in the first nine months of 2000, versus 2.03% for the
first nine months of 1999. The Company's efficiency ratio (noninterest
expense, net of intangibles and merger expense, expressed as a percent of
the sum of taxable-equivalent net interest income plus noninterest income)
was 60.61% in the first nine months of 2000, compared to 64.88% for the
comparable period in 1999. The decrease in the efficiency ratio reflects
higher operating revenues and lower costs as noted above.
Income Taxes
------------
The provision for income taxes increased $398,000, or 19.1%, during the
third quarter and $2.0 million, or 41.4%, during the first nine months of
2000, relative to the comparable prior year periods. The Company's
effective tax rate for the first nine months of 2000 was 34.1% versus 31.1%
for the comparable period in 1999. The increase in the provision and the
effective tax rate is attributable to higher taxable income and a change in
how state taxes are assessed.
Prior to 2000, intangible taxes paid to the State of Florida (recorded as
noninterest expense on the Company's books) qualified as an offset or
credit against the Company's state tax liability. In 2000, the State's
intangible tax on banks was eliminated. While this did not materially
change the total amount of taxes paid to the State, it does result in the
full amount being reflected in the provision for income taxes.
FINANCIAL CONDITION
-------------------
The Company's average assets were $1.5 billion for the first nine months of
2000, compared to $1.4 billion for the comparable period in 1999. Average
earning assets were $1.3 billion for the nine months ended September 30,
2000, constant with the comparable period in 1999. The mix of earning
assets shifted as loan growth accelerated and was primarily funded by a
reduction in investment securities, funds sold and increase in short-term
borrowings. Table I on Page 17 presents average balances for the three and
nine month periods ended September 30, 2000 and 1999.
Average loans increased $110.9 million, or 12.7%, over the comparable
period in 1999. Price and product competition remain strong in all
markets. Loan growth has occurred in all categories, with the most
significant increase in real estate. Loans which represent the Company's
highest yielding asset, were 75.7% of total earning assets for the nine
months ended September 30, 2000, versus 67.5% for the comparable period in
1999.
<PAGE>
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. As of September 30, 2000, the average
investment portfolio decreased $39.9 million, or 11.9%, from the comparable
period in 1999. The decrease in the investment portfolio was used to fund
the growth in loans. 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
shareowners' equity. At September 30, 2000, shareowners' equity included
an accumulated other comprehensive loss of $4.3 million compared to a net
loss of $6.2 million at December 31, 1999, reflecting the decrease in
interest rates and decline in the investment portfolio.
At September 30, 2000, the Company's nonperforming loans were $3.2 million
versus $3.0 million at year-end 1999. As a percent of nonperforming loans,
the allowance for loan losses represented 333% at September 30, 2000 versus
332% at December 31, 1999 and 372% at September 30, 1999, respectively.
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 $1.0 million at September 30,
2000, compared to $934,000 at December 31, 1999, and $1.4 million at
September 30, 1999. The ratio of nonperforming assets as a percent of
loans plus other real estate was .40% at September 30, 2000, compared to
.42% at December 31, 1999, and .45% at September 30, 1999.
Average deposits decreased 3.0% from $1.24 billion for the first nine
months of 1999, to $1.20 billion for the first nine months of 2000. The
decrease in deposits is attributable to the decline in certificates of
deposits, primarily reflecting maturities of high yielding, promotional
certificates. This decline was partially offset by increases in money
market and NOW accounts. The Company continues to experience a notable
increase in competition for deposits, in terms of both rate and product.
The ratio of average noninterest bearing deposits to total deposits was
22.5% for the first nine months of 2000 compared to 21.2% for the
comparable period in 1999. For the same periods, the ratio of average
interest bearing liabilities to average earning assets was 78.8% and 79.8%,
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 deposits, 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. Additionally, the parent company maintains
a $25 million revolving line of credit. As of September 30, 2000, there
was $750,000 outstanding under this facility. During the first nine months
of 2000, principal reductions on the line of credit totaled $2.25 million.
The Company's equity capital was $143.7 million as of September 30, 2000,
compared to $132.2 million as of December 31, 1999. Management continues
to monitor its capital position in relation to its level of assets with the
objective of maintaining a "well capitalized" position. The leverage ratio
was 8.38% at September 30, 2000, versus 7.92% at December 31, 1999.
Further, the Company's risk-adjusted capital ratio of 12.73% significantly
exceeds the 8.0% minimum requirement under the risk-based regulatory
guidelines.
During the first nine months of 2000, shareowners' equity increased $11.5
million, or 11.6%, on an annualized basis. Growth in equity during the
first nine months was positively impacted by net income of $13.5 million,
issuance of common stock of $114,000 and a decline in the other
comprehensive loss of $1.9 million. Equity was reduced by dividends paid
during the first three quarters of $4.0 million, or $.3975 per share.
<PAGE>
State and federal regulations as well as the Company's long-term debt
agreement place certain restrictions on the payment of dividends by both
the Company and its Group banks. At September 30, 2000, these regulations
and covenants did not impair the Company's (or its subsidiary's) ability to
declare and pay dividends or to meet other existing obligations.
The Company's common stock had a diluted book value of $14.08 per share at
September 30, 2000, compared to $12.96 at December 31, 1999 On March 30,
2000, the Company announced the authorization to repurchase 500,000 shares
of its outstanding common stock. The purchases will be made in the open
market or in privately negotiated transactions. To date, the Company has
acquired 36,000 shares.
YEAR 2000 COMPLIANCE
--------------------
The YEAR 2000 issue created challenges with respect to the automated
systems used by financial institutions and other companies. Many programs
and systems were not able to recognize the year 2000, or that the new
millennium is a leap year. The problem was not limited to computer
systems. YEAR 2000 issues could have potentially affected every system
that had an embedded microchip containing this flaw.
Costs directly related to YEAR 2000 issues were $780,000 from 1998 to 2000,
of which approximately 100% had been spent as of December 31, 1999.
Approximately 75% of the total spending represented costs to modify
existing systems. Costs incurred by the Company prior to 1998 were
immaterial. This expense does not reflect any significant YEAR 2000
related costs incurred on behalf of the Company's vendors, suppliers,
customers or other third parties.
Contingency plans for YEAR 2000 related interruptions were developed and
included, but were not limited to, the development of emergency backup and
recovery procedures, remediation of existing systems parallel with
installation of new systems, replacing electronic applications with manual
processes, and identification of alternate suppliers.
As of September 30, 2000, the Company experienced no known Year 2000
problems that were material.
<PAGE>
<TABLE>
TABLE I
AVERAGES BALANCES & INTEREST RATES
(Taxable Equivalent Basis - Dollars in Thousands)
<CAPTION>
FOR THREE MONTHS ENDED SEPTEMBER 30, FOR NINE MONTHS ENDED SEPTEMBER 30,
2000 1999 2000 1999
----------------------- ----------------------- ----------------------- -----------------------
Balance Interest Rate Balance Interest Rate Balance Interest Rate Balance Interest Rate
------- -------- ---- ------- -------- ---- ------- -------- ---- ------- -------- -----
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
ASSETS
Loans, Net of Unearned
Interest(1) $1,025,943 $24,107 9.35% $ 892,161 $19,982 8.89% $ 984,813 $67,899 9.21% $ 873,920 $58,253 8.91%
Taxable Investment
Securities 193,901 2,838 5.89% 228,769 3,274 5.68% 201,820 8,904 5.89% 234,510 9,971 5.68%
Tax-Exempt Investment
Securities(2) 90,641 1,320 5.83% 101,859 1,516 5.90% 94,471 4,155 5.86% 101,653 4,488 5.90%
Funds Sold 8,213 138 6.62% 74,691 950 5.05% 19,039 870 6.05% 84,722 3,042 4.80%
---------- ------- ---- ---------- ------- ---- ---------- ------- ---- ---------- ------- ----
Total Earning Assets 1,318,698 28,403 8.57% 1,297,480 25,722 7.86% 1,300,143 81,828 8.41% 1,294,805 75,754 7.82%
Cash & Due From Banks 59,822 62,769 62,725 63,407
Allowance for Loan Losses (10,578) (10,139) (10,369) (10,141)
Other Assets 97,513 96,395 97,615 95,072
---------- ---------- ---------- ----------
TOTAL ASSETS $1,465,455 $1,446,505 $1,450,114 $1,443,143
========== ========== ========== ==========
LIABILITIES
NOW Accounts $ 172,910 $ 1,115 2.56% $ 155,441 $ 728 1.86% $ 170,374 $ 3,088 2.42% $ 150,833 $ 2,235 1.89%
Money Market Accounts 159,360 1,718 4.29% 161,532 1,501 3.69% 160,610 4,944 4.11% 153,240 4,224 3.69%
Savings Accounts 106,052 640 2.40% 115,629 622 2.13% 105,181 1,760 2.23% 115,497 1,797 2.08%
Other Time Deposits 494,972 6,979 5.61% 541,967 6,644 4.86% 494,484 19,482 5.26% 555,736 20,686 4.98%
---------- ------- ---- ---------- ------- ---- ---------- ------- ---- ---------- ------- ----
Total Interest Bearing
Deposits 933,294 10,452 4.46% 974,568 9,495 3.87% 930,649 29,274 4.20% 975,306 28,942 3.97%
Short-Term Borrowings 89,581 1,391 6.18% 47,395 513 4.29% 80,254 3,380 5.63% 40,308 1,244 4.13%
Long-Term Debt 12,706 196 6.14% 17,525 279 6.32% 13,612 632 6.20% 18,255 890 6.52%
---------- ------- ---- --------- ------- ---- ---------- ------- ---- ---------- ------- ----
Total Interest Bearing
Liabilities 1,035,581 12,039 4.62% 1,039,488 10,287 3.93% 1,024,515 33,286 4.34% 1,033,869 31,076 4.02%
Noninterest Bearing
Deposits 269,960 259,792 270,901 262,909
Other Liabilities 18,067 17,091 17,116 15,603
---------- ---------- ---------- ----------
TOTAL LIABILITIES 1,323,608 1,316,371 1,312,532 1,312,381
SHAREOWNERS' EQUITY
Common Stock 102 102 102 101
Surplus 9,342 8,998 9,353 8,834
Other Comprehensive Income (5,609) (4,246) (6,617) (1,574)
Retained Earnings 138,012 125,280 134,744 123,401
---------- ---------- ---------- ----------
TOTAL SHAREOWNERS'
EQUITY 141,847 130,134 137,582 130,762
---------- ---------- ---------- ----------
TOTAL LIABILITIES
& EQUITY $1,465,455 $1,446,505 $1,450,114 $1,443,143
========== ========== ========== ==========
Interest Rate Spread 3.95% 3.93% 4.07% 3.80%
Net interest Income $16,364 $15,435 $48,542 $44,678
Net Yield on Earning Assets 4.94% 4.73% 4.99% 4.61%
(1) Average balances include nonaccrual loans. Interest income includes fees on loans of approximately $1.0 million and
$3.0 million for the three and nine months ended September 30, 2000, versus $927,000 and $2.6 million, for the comparable
periods ended September 30, 1999
(2) Interest income includes the effects of taxable equivalent adjustments using a 35% federal tax rate.
</TABLE>
<PAGE>
ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURE ABOUT MARKET RISK
Overview
--------
Market risk management arises from changes in interest rates, exchange
rates, commodity prices and equity prices. The Company has risk management
policies to monitor and limit exposure to market risk. Capital City Bank
Group does not actively participate in exchange rates, commodities or
equities. In asset and liability management activities, policies are in
place which are designed to minimize structural interest rate risk.
Interest Rate Risk Management
-----------------------------
The normal course of business activity exposes Capital City Bank Group to
interest rate risk. Fluctuations in interest rates may result in changes
in the fair market value of the Company's financial instruments, cash flows
and net interest income. Capital City Bank Group's asset/liability
management process manages the Company's interest rate risk.
The financial assets and liabilities of the Company are classified as other-
than-trading. An analysis of the other-than-trading financial components,
including the fair values, are presented in Table II on page 19. This
table presents the Company's consolidated interest rate sensitivity
position as of September 30, 2000 based upon certain assumptions as set-
forth in the notes to the Table. The objective of interest rate
sensitivity analysis is to measure the impact on the Company's net interest
income due to fluctuations in interest rates. The asset and liability fair
values presented in Table II may not necessarily be indicative of the
Company's interest rate sensitivity over an extended period of time.
The Company is currently liability sensitive which generally indicates that
in a period of rising or falling interest rates the net interest margin
will be impacted as the velocity and/or volume of liabilities being
repriced exceeds assets. However, as general interest rates rise or fall,
other factors such as current market conditions and competition may impact
how the Company responds to changing rates and thus impact the magnitude of
change in net interest income.
<PAGE>
<TABLE>
Table II
FINANCIAL ASSETS AND LIABILITIES MARKET RISK ANALYSIS(1)
(Dollars in Thousands)
<CAPTION>
Other Than Trading Portfolio September 30, 2000
---------------------------- -------------------------------------------------------------------------------- Market
Year 1 Year 2 Year 3 Year 4 Year 5 Beyond Total Value
-------- -------- -------- -------- -------- -------- ---------- ----------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Loans
Fixed Rate $104,043 $ 30,606 $ 47,673 $ 43,536 $ 40,871 $110,236 $ 376,965 $ 381,620
Average Interest Rate 9.78% 10.02% 8.47% 8.70% 9.19% 8.07% 9.21%
Floating Rate(2) 385,722 44,066 45,907 47,429 68,209 92,071 683,404 691,842
Average Interest Rate 9.65% 8.15% 8.58% 8.03% 8.40% 7.20% 8.89%
Investment Securities(3)
Fixed Rate 81,578 42,296 18,329 26,427 29,014 76,772 274,416 274,416
Average Interest Rate 5.88 5.66% 5.15% 5.73% 5.80% 6.33% 5.90%
Floating Rate 0 0 7,525 0 0 504 8,029 8,029
Average Interest Rate 0 0 6.72% 0 0 6.29% 6.69%
Other Earning Assets
Fixed Rates 0 0 0 0 0 0 0 0
Average Interest Rates 0 0 0 0 0 0 0
Floating Rates 3,809 0 0 0 0 0 3,809 3,809
Average Interest Rates 6.42% 0 0 0 0 0 6.42%
Total Financial Assets $575,152 $116,968 $119,434 $117,392 $138,094 $279,583 $1,346,623 $1,359,716
Average Interest Rates 9.11% 7.74% 7.89% 7.76% 8.09% 7.30% 8.35%
Deposits(4)
Fixed Rate Deposits $447,100 $ 37,999 $ 10,174 $ 3,487 $ 2,084 $ 14 $ 500,858 $ 501,073
Average Interest Rates 5.41% 5.86% 5.14% 5.14% 4.87% 4.79% 5.44%
Floating Rate Deposits 441,807 0 0 0 0 0 441,807 441,807
Average Interest Rates 3.19% 0 0 0 0 0 3.19%
Other Interest Bearing
Liabilities
Fixed Rate Debt 746 703 718 731 747 7,013 10,658 11,571
Average Interest Rate 6.02% 6.02% 6.02% 6.02% 6.02% 6.02% 6.09%
Floating Rate Debt 89,383 0 0 0 0 0 89,383 100,340
Average Interest Rate 6.26% 0 0 0 0 0 6.26%
Total Financial Liabilities $979,036 $ 38,702 $ 10,892 $ 4,218 $ 2,831 $ 7,027 $1,042,706 $1,054,791
Average interest Rate 4.49% 5.86% 5.20% 5.29% 5.17% 6.02% 4.56%
(1) Based upon expected cash-flows, unless otherwise indicated.
(2) Based upon a combination of expected maturities and repricing opportunities.
(3) Based upon contractual maturity, except for callable and floating rate securities, which are based on expected
maturity and weighted average life, respectively.
(4) Savings, NOW and money market accounts can be repriced at any time, therefore, all such balances are included as
floating rate deposits in Year 1. Other time deposit balances are classified according to maturity.
</TABLE>
<PAGE>
PART II. OTHER INFORMATION
ITEMS 1-4
Not applicable
ITEM 5. OTHER INFORMATION
Not applicable
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K
(A) Exhibits
27 Financial Data Schedule
(B) Reports on Form 8-K
No Form 8-K was filed by Capital City Bank Group, Inc. during the
third quarter of 2000.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of
1934, the Registrant has duly caused this Report to be signed on
its behalf by the undersigned Chief Financial Officer hereunto
duly authorized.
CAPITAL CITY BANK GROUP, INC.
(Registrant)
/S/ J. Kimbrough Davis
----------------------------
J. Kimbrough Davis
Executive Vice President and
Chief Financial Officer
Date: November 14, 2000
