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Capital City Bank Group, Inc. Reports First Quarter 2013 Results

TALLAHASSEE, Fla., April 22, 2013 (GLOBE NEWSWIRE) -- Capital City Bank Group, Inc. (Nasdaq:CCBG) today reported net income of $0.8 million, or $0.05 per diluted share for the first quarter of 2013 compared to net income of $1.9 million, or $0.11 per diluted share for the fourth quarter of 2012 and a net loss of $1.2 million, or $0.07 per diluted share for the first quarter of 2012.

Compared to the fourth quarter of 2012, performance reflects lower operating revenues of $1.1 million and a $1.7 million increase in noninterest expense, partially offset by a $1.7 million reduction in the loan loss provision.

Compared to the first quarter of 2012, the increase in earnings was due to a lower loan loss provision of $3.7 million and lower noninterest expense of $1.4 million, which was partially offset by lower operating revenues of $1.7 million and higher income tax expense of $1.4 million.

"In the first quarter of 2013 we saw more of the positive trends we experienced coming out of the latter half of 2012 with the dramatic improvement in nonperforming assets," said William G. Smith, Jr., Chairman, President and CEO. "After declining 14.5% in 2012, nonperforming assets fell another 11.7% to $104 million in the first quarter alone. We have made clear progress in the disposition of other real estate owned and continue to believe our retail strategy – though it takes longer to execute – serves the best interests of our shareowners. While the operating environment remains choppy, economic indicators such as unemployment, population growth, housing and the overall level of real estate activity continue to improve, which we believe points toward greater stability to come. I am encouraged by the progress we've made despite a very challenging period and optimistic about the outlook ahead as we move forward through 2013."

The Return on Average Assets was 0.13% and the Return on Average Equity was 1.36% for the first quarter of 2013, compared to 0.29% and 2.95%, respectively, for the fourth quarter of 2012, and -0.18% and -1.84%, respectively, for the comparable quarter in 2012.

Discussion of Financial Condition

Average earning assets were $2.241 billion for the first quarter of 2013, an increase of $61.9 million, or 2.8% over the fourth quarter of 2012, and a decline of $27.4 million, or 1.2%, from the first quarter of 2012. The increase compared to the fourth quarter of 2012 primarily reflects the higher level of deposits resulting from the seasonal influx of public funds. The decrease in earning assets when compared to the same prior year period is attributable to the continued decline of the loan portfolio resulting from the resolution of problem loans.

We maintained an average net overnight funds (deposits with banks plus fed funds sold less fed funds purchased) sold position of $448.4 million during the first quarter of 2013 compared to an average net overnight funds sold position of $366.0 million in the fourth quarter of 2012 and an average overnight funds sold position of $373.0 million in the first quarter of 2012. The higher balance when compared to the fourth quarter of 2012 primarily reflects the decline in the loan portfolio and higher public funds. The increase when compared to the first quarter of 2012 again reflects the declining loan portfolio, partially offset by a lower level of deposits.

The loan portfolio continues to decline and the deployment of the excess liquidity remains in overnight funds. Historically, we have maintained a slight overnight funds position. During the remainder of 2013, we will begin our efforts to reduce the current level of overnight funds.

When compared to the fourth and first quarters of 2012, average loans declined by $21.8 million and $100.0 million, respectively. Most loan categories have experienced declines with the reduction primarily in the commercial real estate and residential real estate categories. Our core loan portfolio continues to be impacted by normal amortization and a higher level of payoffs that have outpaced our new loan production. New loan production continues to be impacted by weak loan demand attributable to the trend toward consumers and businesses deleveraging, the lack of consumer confidence, and a persistently sluggish economy. Efforts to stimulate new loan growth are ongoing; during 2012 we modified lending programs in our business and commercial real estate areas to try and mitigate the significant impact that consumer and business deleveraging is having on our portfolio.

Nonperforming assets (nonaccrual loans and other real estate owned "OREO") totaled $103.9 million at the end of the first quarter of 2013, a decrease of $13.8 million from the fourth quarter of 2012 and $33.0 million from the first quarter of 2012. Nonaccrual loans totaled $45.4 million at the end of the first quarter of 2013, a decrease of $18.8 million and $33.3 million, respectively, from the same prior year periods. Nonaccrual loan additions in the first quarter of 2013 totaled $7.7 million compared to $12.5 million and $19.7 million for the fourth quarter of 2012 and first quarter of 2012, respectively. The balance of OREO totaled $58.4 million at the end of the first quarter of 2013, an increase of $5.0 million over the fourth quarter of 2012 and $0.3 million over the first quarter of 2012. For the first quarter of 2013 we added properties totaling $13.0 million, sold properties totaling $6.8 million, and recorded valuation adjustments totaling $1.2 million. Nonperforming assets represented 3.99% of total assets at March 31, 2013 compared to 4.47% at December 31, 2012 and 5.14% at March 31, 2012.

Average total deposits were $2.103 billion for the first quarter of 2013, an increase of $51.9 million, or 2.5%, over the fourth quarter of 2012 and lower by $58.4 million, or 2.7%, from the first quarter of 2012. The increase in deposits when compared to the fourth quarter of 2012 resulted primarily from the higher level of public funds partially offset by a reduction in certificates of deposit. When compared to the first quarter of 2012, the decline was a result of lower certificates of deposit and noninterest bearing accounts, while growth was experienced in savings and money market accounts.

Our mix of deposits continues to improve as higher cost certificates of deposit are replaced with lower rate non-maturity deposits and noninterest bearing demand accounts. Prudent pricing discipline will continue to be the key to managing our mix of deposits. Therefore, we do not attempt to compete with higher rate paying competitors for deposits.

Average borrowings increased by $9.6 million when compared to the fourth quarter of 2012 as a result of higher balances in repurchase agreements, and were higher by $8.2 million when compared to the first quarter of 2012, resulting from a higher level of federal home loan bank advances.

Discussion of Operating Results

Tax equivalent net interest income for the first quarter of 2013 was $20.1 million compared to $20.7 million for the fourth quarter of 2012 and $21.8 million for the first quarter of 2012. The decrease in tax equivalent net interest income compared to the prior periods was due to a reduction in loan income primarily attributable to declining loan balances and unfavorable asset repricing, partially offset by a reduction in interest expense and a lower level of foregone interest on loans. The lower interest expense is attributable to favorable repricing on FHLB advances and certificates of deposit which reflects both lower balances and favorable repricing.

The decline in the loan portfolio, coupled with the low rate environment continues to put pressure on our net interest income. Lowering our cost of funds, to the extent we can, and continuing to shift the mix of our deposits will help to partially mitigate the unfavorable impact of weak loan demand and repricing, although the impact is expected to be minimal.

The net interest margin for the first quarter of 2013 was 3.64%, a decrease of fourteen basis points from the fourth quarter of 2012, and a decline of 23 basis points from the first quarter of 2012. The decrease in the margin for both comparable periods is attributable to the shift in our earning asset mix and unfavorable asset repricing, partially offset by a lower average cost of funds.

The provision for loan losses for the first quarter of 2013 was $1.1 million compared to $2.8 million in the fourth quarter of 2012 and $4.8 million for the first quarter of 2012. The decrease in the loan loss provision compared to both prior periods reflects a lower level of impaired loan additions and related reserves as well as improving trends in loan delinquencies, classified loans, and loan losses. Net charge-offs for the first quarter of 2013 totaled $2.4 million, or 0.66% (annualized), of average loans compared to $3.8 million, or 1.00%, for the fourth quarter of 2012 and $4.6 million, or 1.16%, in the first quarter of 2012. At quarter-end, the allowance for loan losses of $27.8 million was 1.90% of outstanding loans (net of overdrafts) and provided coverage of 61% of nonperforming loans compared to 1.93% and 45%, respectively, at December 31, 2012, and 1.98% and 40%, respectively, at March 31, 2012.

Noninterest income for the first quarter of 2013 totaled $13.6 million, a decrease of $0.5 million, or 3.8%, from the fourth quarter of 2012 reflective of lower deposit fees of $0.6 million, trust fees of $0.1 million, and other income of $0.2 million, partially offset by higher retail brokerage fees of $0.2 million and mortgage banking fees of $0.1 million. The decrease in deposit fees was primarily due to an expected lower utilization of our overdraft protection service during the first quarter as clients receive tax refunds and to a lesser extent two less processing days in the current quarter. The decrease in trust fees reflects a lower level of assets under management primarily due to account distributions. Other income declined due to a lower level of gains from the sale of OREO properties. The increase in retail brokerage fees reflects a higher level of client trading activity. A higher level of loans funded and a higher margin realized for sold loans drove the increase in mortgage banking fees. Compared to the first quarter of 2012, noninterest income remained flat as higher retail brokerage fees of $0.2 million and mortgage banking fees of $0.2 million were offset by lower deposit fees of $0.2 million, bank card fees of $0.1 million, and other income of $0.1 million. Increased client trading activity drove the improvement in retail brokerage fees. The increase in mortgage fees was attributable to a higher level of loans funded and a higher margin for sold loans. The reduction in deposit fees was due to a higher level of charged off checking accounts. Bank card fees decline due to a lower level of card activity and the decrease in other income was attributable to a lower level of fees for our working capital finance product.

Noninterest expense for the first quarter of 2013 totaled $31.2 million, an increase of $1.7 million, or 5.9%, over the fourth quarter of 2012 and a decrease of $1.4 million, or 4.3%, from the first quarter of 2012. The increase compared to the fourth quarter of 2012 was due to higher compensation expense of $1.0 million and an increase in OREO expense of $1.0 million, partially offset by lower furniture/equipment expense of $0.1 million and other expense of $0.2 million. The increase in compensation was driven by higher pension plan expense of $0.4 million, payroll taxes of $0.2 million, unemployment taxes of $0.2 million, cash incentive expense of $0.1 million, and employee insurance of $0.1 million. The increase in expense for our pension plan was primarily attributable to the utilization of a lower discount rate in 2013 due to lower long-term bond interest rates. The increase in payroll taxes reflects the reset of social security taxes and the increase in unemployment taxes is attributable to timing as a large portion of the annual premium is paid in the first quarter. Cash incentive expense increased due to the reset of these plans for 2013 performance metrics. The increase in employee insurance reflects the annual renewal of policies at a slightly higher premium rate. OREO expense increased due to a higher level of property valuation adjustments. The favorable variance in furniture/equipment expense was due to lower tangible taxes and the decrease in other expense reflects lower professional fees and advertising costs. The favorable variance in noninterest expense compared to the first quarter of 2012 was primarily attributable to a reduction in OREO expense of $0.6 million, compensation expense of $0.1 million, and other expense of $0.6 million. The reduction in OREO expense was due to a lower level of loss on sale from property dispositions. Lower employee salary expense, which is reflective of reduced headcount drove the decline in compensation. Decreases in professional fees, legal fees, and advertising costs drove the reduction in the other expense category. Expense management continues to be a key strategic focus as we evaluate opportunities to optimize our delivery channels, review our vendor relationships, and better manage our discretionary expenses.

About Capital City Bank Group, Inc.

Capital City Bank Group, Inc. (Nasdaq:CCBG) is one of the largest publicly traded bank holding companies headquartered in Florida and has approximately $2.6 billion in assets. The Company provides a full range of banking services, including traditional deposit and credit services, asset management, trust, mortgage banking, merchant services, bankcards, data processing and securities brokerage services. The Company's bank subsidiary, Capital City Bank, was founded in 1895 and now has 66 full-service offices and 71 ATMs in Florida, Georgia and Alabama. For more information about Capital City Bank Group, Inc., visit www.ccbg.com.

FORWARD-LOOKING STATEMENTS

Forward-looking statements in this Press Release are based on current plans and expectations that are subject to uncertainties and risks, which could cause the Company's future results to differ materially. The following factors, among others, could cause the Company's actual results to differ: the Company's need and our ability to incur additional debt or equity financing; the accuracy of the Company's financial statement estimates and assumptions, including the estimate used for the Company's loan loss provision and deferred tax valuation allowance; continued depression of the market value of the Company that could result in an impairment of goodwill; legislative or regulatory changes, including the Dodd-Frank Act and Basel III; the strength of the U.S. economy and the local economies where the Company conducts operations; the frequency and magnitude of foreclosure of the Company's loans; restrictions on our operations, including the inability to pay dividends without our regulators' consent; the effects of the health and soundness of other financial institutions, including the FDIC's need to increase Deposit Insurance Fund assessments; the effects of the Company's lack of a diversified loan portfolio, including the risks of geographic and industry concentrations; harsh weather conditions and man-made disasters; fluctuations in inflation, interest rates, or monetary policies; changes in the stock market and other capital and real estate markets; customer acceptance of third-party products and services; increased competition and its effect on pricing, including the impact on our net interest margin from the repeal of Regulation Q; negative publicity and the impact on our reputation; technological changes; the effects of security breaches and computer viruses that may affect the Company's computer systems; changes in consumer spending and savings habits; the Company's growth and profitability; changes in accounting; and the Company's ability to manage the risks involved in the foregoing. Additional factors can be found in the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2012, and the Company's other filings with the SEC, which are available at the SEC's internet site (http://www.sec.gov). Forward-looking statements in this Press Release speak only as of the date of the Press Release, and the Company assumes no obligation to update forward-looking statements or the reasons why actual results could differ.

CAPITAL CITY BANK GROUP, INC.
EARNINGS HIGHLIGHTS
Unaudited
Three Months Ended
(Dollars in thousands, except per share data) Mar 31, 2013 Dec 31, 2012 Mar 31, 2012
EARNINGS
Net Income (Loss) $ 839 $ 1,875 $ (1,162)
Net Income (Loss) Per Common Share $ 0.05 $ 0.11 $ (0.07)
PERFORMANCE
Return on Average Assets 0.13% 0.29% -0.18%
Return on Average Equity 1.36% 2.95% -1.84%
Net Interest Margin 3.64% 3.78% 3.87%
Noninterest Income as % of Operating Revenue 40.62% 40.81% 38.64%
Efficiency Ratio 92.67% 84.68% 92.04%
CAPITAL ADEQUACY
Tier 1 Capital Ratio 14.95% 14.35% 14.17%
Total Capital Ratio 16.32% 15.72% 15.54%
Tangible Common Equity Ratio 6.49% 6.35% 6.42%
Leverage Ratio 9.81% 9.90% 9.71%
Equity to Assets 9.54% 9.37% 9.43%
ASSET QUALITY
Allowance as % of Non-Performing Loans 61.17% 45.42% 39.65%
Allowance as a % of Loans 1.90% 1.93% 1.98%
Net Charge-Offs as % of Average Loans 0.66% 1.00% 1.16%
Nonperforming Assets as % of Loans and ORE 6.81% 7.47% 8.36%
Nonperforming Assets as % of Total Assets 3.99% 4.47% 5.14%
STOCK PERFORMANCE
High $ 12.54 $ 11.91 $ 9.91
Low 10.95 9.04 7.32
Close 12.35 11.37 7.45
Average Daily Trading Volume $ 23,519 $ 20,045 $ 24,751
CAPITAL CITY BANK GROUP, INC.
CONSOLIDATED STATEMENT OF FINANCIAL CONDITION
Unaudited
2013 2012
(Dollars in thousands) First Quarter Fourth Quarter Third Quarter Second Quarter First Quarter
ASSETS
Cash and Due From Banks $ 52,677 $ 66,238 $ 53,076 $ 57,477 $ 50,567
Funds Sold and Interest Bearing Deposits 461,714 443,494 314,318 434,814 418,678
Total Cash and Cash Equivalents 514,391 509,732 367,394 492,291 469,245
Investment Securities, Available-for-Sale 307,502 296,985 288,166 280,753 284,490
Loans, Net of Unearned Interest
Commercial, Financial, & Agricultural 125,905 139,850 135,939 136,736 132,119
Real Estate - Construction 42,968 43,740 43,278 46,803 34,554
Real Estate - Commercial 599,517 613,625 609,671 605,819 624,528
Real Estate - Residential 311,189 318,400 341,044 353,198 364,123
Real Estate - Home Equity 233,205 236,263 239,446 242,929 240,800
Consumer 146,043 150,728 154,389 162,899 174,132
Other Loans 5,187 11,547 6,891 5,638 6,555
Overdrafts 2,307 7,149 2,637 2,214 2,073
Total Loans, Net of Unearned Interest 1,466,321 1,521,302 1,533,295 1,556,236 1,578,884
Allowance for Loan Losses (27,803) (29,167) (30,222) (29,929) (31,217)
Loans, Net 1,438,518 1,492,135 1,503,073 1,526,307 1,547,667
Premises and Equipment, Net 105,883 107,092 109,003 110,302 111,408
Intangible Assets 84,985 85,053 85,161 85,269 85,376
Other Real Estate Owned 58,421 53,426 53,172 58,059 58,100
Other Assets 95,613 89,561 87,815 92,869 103,992
Total Other Assets 344,902 335,132 335,151 346,499 358,876
Total Assets $ 2,605,313 $ 2,633,984 $ 2,493,784 $ 2,645,850 $ 2,660,278
LIABILITIES
Deposits:
Noninterest Bearing Deposits $ 616,017 $ 609,235 $ 596,660 $ 623,130 $ 605,774
NOW Accounts 765,030 842,435 703,327 789,103 845,149
Money Market Accounts 299,118 267,766 285,084 288,352 283,224
Regular Savings Accounts 200,492 184,541 181,523 178,388 172,262
Certificates of Deposit 233,325 241,019 254,000 271,413 279,295
Total Deposits 2,113,982 2,144,996 2,020,594 2,150,386 2,185,704
Short-Term Borrowings 50,682 47,435 42,388 69,449 42,188
Subordinated Notes Payable 62,887 62,887 62,887 62,887 62,887
Other Long-Term Borrowings 41,224 46,859 38,126 38,846 42,826
Other Liabilities 87,930 84,918 79,427 75,260 75,876
Total Liabilities 2,356,705 2,387,095 2,243,422 2,396,828 2,409,481
SHAREOWNERS' EQUITY
Common Stock 173 172 172 172 172
Additional Paid-In Capital 39,580 38,707 38,493 38,260 38,101
Retained Earnings 238,408 237,569 235,694 234,573 236,299
Accumulated Other Comprehensive Loss, Net of Tax (29,553) (29,559) (23,997) (23,983) (23,775)
Total Shareowners' Equity 248,608 246,889 250,362 249,022 250,797
Total Liabilities and Shareowners' Equity $ 2,605,313 $ 2,633,984 $ 2,493,784 $ 2,645,850 $ 2,660,278
OTHER BALANCE SHEET DATA
Earning Assets $ 2,235,537 $ 2,261,781 $ 2,135,779 $ 2,271,803 $ 2,282,053
Intangible Assets
Goodwill 84,811 84,811 84,811 84,811 84,811
Core Deposits 0 19 79 139 198
Other 174 223 271 319 367
Interest Bearing Liabilities 1,652,758 1,692,942 1,567,335 1,698,438 1,727,831
Book Value Per Diluted Share $ 14.35 $ 14.31 $ 14.54 $ 14.48 $ 14.60
Tangible Book Value Per Diluted Share 9.44 9.38 9.59 9.52 9.63
Actual Basic Shares Outstanding 17,319 17,232 17,223 17,198 17,182
Actual Diluted Shares Outstanding 17,326 17,259 17,223 17,198 17,182
CAPITAL CITY BANK GROUP, INC.
CONSOLIDATED STATEMENT OF OPERATIONS
Unaudited
2013 2012
(Dollars in thousands, except per share data) First Quarter Fourth Quarter Third Quarter Second Quarter First Quarter
INTEREST INCOME
Interest and Fees on Loans $ 20,154 $ 20,756 $ 21,274 $ 21,359 $ 22,005
Investment Securities 704 808 798 834 900
Funds Sold 270 223 254 244 225
Total Interest Income 21,128 21,787 22,326 22,437 23,130
INTEREST EXPENSE
Deposits 415 429 480 556 643
Short-Term Borrowings 82 69 71 48 8
Subordinated Notes Payable 339 351 372 372 382
Other Long-Term Borrowings 347 383 372 396 436
Total Interest Expense 1,183 1,232 1,295 1,372 1,469
Net Interest Income 19,945 20,555 21,031 21,065 21,661
Provision for Loan Losses 1,070 2,766 2,864 5,743 4,793
Net Interest Income after Provision for Loan Losses 18,875 17,789 18,167 15,322 16,868
NONINTEREST INCOME
Service Charges on Deposit Accounts 6,165 6,764 6,406 6,313 6,309
Data Processing Fees 653 671 687 680 675
Asset Management Fees(1) 993 1,100 1,020 1,020 1,015
Retail Brokerage Fees(1) 922 718 666 884 758
Mortgage Banking Fees 1,043 910 978 864 848
Interchange Fees (2) 1,793 1,726 1,619 1,580 1,526
ATM/Debit Card Fees (2) 868 886 997 1,204 1,245
Other 1,151 1,343 1,202 1,361 1,210
Total Noninterest Income 13,588 14,118 13,575 13,906 13,586
NONINTEREST EXPENSE
Compensation 16,739 15,772 15,510 16,117 16,843
Occupancy, Net 2,248 2,200 2,332 2,276 2,266
Furniture and Equipment 2,153 2,212 2,245 2,245 2,201
Intangible Amortization 68 108 108 107 108
Other Real Estate 2,901 1,917 2,616 3,460 3,513
Other 7,091 7,259 7,390 8,088 7,666
Total Noninterest Expense 31,200 29,468 30,201 32,293 32,597
OPERATING PROFIT (LOSS) 1,263 2,439 1,541 (3,065) (2,143)
Income Tax Expense (Benefit) 424 564 420 (1,339) (981)
NET INCOME (LOSS) $ 839 $ 1,875 $ 1,121 $ (1,726) $ (1,162)
PER SHARE DATA
Basic Income (Loss) $ 0.05 $ 0.11 $ 0.07 $ (0.10) $ (0.07)
Diluted Income (Loss) $ 0.05 $ 0.11 $ 0.07 $ (0.10) $ (0.07)
AVERAGE SHARES
Basic 17,302 17,229 17,215 17,192 17,181
Diluted 17,309 17,256 17,228 17,192 17,181
(1) Together referred to as "Wealth Management Fees"
(2) Together referred to as "Bank Card Fees"
CAPITAL CITY BANK GROUP, INC.
ALLOWANCE FOR LOAN LOSSES
AND NONPERFORMING ASSETS
Unaudited
(Dollars in thousands, except per share data) 2013
First Quarter
2012
Fourth Quarter
2012
Third Quarter
2012
Second Quarter
2012
First Quarter
ALLOWANCE FOR LOAN LOSSES
Balance at Beginning of Period $ 29,167 $ 30,222 $ 29,929 $ 31,217 $ 31,035
Provision for Loan Losses 1,070 2,766 2,864 5,743 4,793
Net Charge-Offs 2,434 3,821 2,571 7,031 4,611
Balance at End of Period $ 27,803 $ 29,167 $ 30,222 $ 29,929 $ 31,217
As a % of Loans 1.90% 1.93% 1.97% 1.93% 1.98%
As a % of Nonperforming Loans 61.17% 45.42% 40.80% 40.03% 39.65%
CHARGE-OFFS
Commercial, Financial and Agricultural $ 154 $ 166 $ 331 $ 57 $ 268
Real Estate - Construction 610 227 127 275 0
Real Estate - Commercial 1,043 468 512 3,519 1,532
Real Estate - Residential 683 2,877 981 3,894 1,967
Real Estate - Home Equity 113 745 834 425 892
Consumer 296 488 355 550 732
Total Charge-Offs $ 2,899 $ 4,971 $ 3,140 $ 8,720 $ 5,391
RECOVERIES
Commercial, Financial and Agricultural $ 51 $ 87 $ 53 $ 83 $ 67
Real Estate - Construction -- 7 9 27 --
Real Estate - Commercial 38 468 34 42 138
Real Estate - Residential 96 83 76 969 163
Real Estate - Home Equity 18 250 15 116 18
Consumer 262 255 382 452 394
Total Recoveries $ 465 $ 1,150 $ 569 $ 1,689 $ 780
NET CHARGE-OFFS $ 2,434 $ 3,821 $ 2,571 $ 7,031 $ 4,611
Net Charge-Offs as a % of Average Loans(1) 0.66% 1.00% 0.66% 1.80% 1.16%
RISK ELEMENT ASSETS
Nonaccruing Loans $ 45,448 $ 64,222 $ 74,075 $ 74,770 $ 78,726
Other Real Estate Owned 58,421 53,426 53,172 58,059 58,100
Total Nonperforming Assets $ 103,869 $ 117,648 $ 127,247 $ 132,829 $ 136,826
Past Due Loans 30-89 Days $ 9,274 $ 9,934 $ 12,923 $ 16,695 $ 9,193
Past Due Loans 90 Days or More -- -- -- -- 25
Performing Troubled Debt Restructuring's $ 53,108 $ 47,474 $ 45,973 $ 38,734 $ 37,373
Nonperforming Loans as a % of Loans 3.10% 4.22% 4.83% 4.80% 4.99%
Nonperforming Assets as a % of Loans and Other Real Estate 6.81% 7.47% 8.02% 8.23% 8.36%
Nonperforming Assets as a % of Total Assets 3.99% 4.47% 5.10% 5.02% 5.14%
(1) Annualized
CAPITAL CITY BANK GROUP, INC.
AVERAGE BALANCE AND INTEREST RATES(1)
Unaudited
First Quarter 2013 Fourth Quarter 2012 Third Quarter 2012
(Dollars in thousands) Average
Balance
Interest Average
Rate
Average
Balance
Interest Average
Rate
Average
Balance
Interest Average
Rate
ASSETS:
Loans, Net of Unearned Interest $ 1,496,432 20,228 5.48% $ 1,518,280 20,837 5.46% $ 1,541,262 21,366 5.51%
Investment Securities
Taxable Investment Securities 215,087 590 1.10 219,985 697 1.26 214,431 691 1.28
Tax-Exempt Investment Securities 80,946 174 0.86 74,647 172 0.92 67,446 163 0.97
Total Investment Securities 296,033 764 1.04 294,632 869 1.17 281,877 854 1.21
Funds Sold 448,424 270 0.24 366,034 223 0.24 386,027 254 0.26
Total Earning Assets 2,240,889 $ 21,262 3.85% 2,178,946 $ 21,929 4.00% 2,209,166 $ 22,474 4.05%
Cash and Due From Banks 50,679 51,344 47,207
Allowance for Loan Losses (30,467) (30,605) (30,260)
Other Assets 337,579 334,326 340,126
Total Assets $ 2,598,680 $ 2,534,011 $ 2,566,239
LIABILITIES:
Interest Bearing Deposits
NOW Accounts $ 788,660 $ 156 0.08% $ 714,682 $ 131 0.07% $ 740,178 $ 144 0.08%
Money Market Accounts 282,847 54 0.08 275,458 57 0.08 287,250 60 0.08
Savings Accounts 193,033 23 0.05 182,760 23 0.05 179,445 23 0.05
Time Deposits 238,441 181 0.31 247,679 218 0.35 263,007 253 0.38
Total Interest Bearing Deposits 1,502,981 414 0.11% 1,420,579 429 0.12% 1,469,880 480 0.13%
Short-Term Borrowings 55,255 82 0.60% 45,893 69 0.59% 59,184 71 0.48%
Subordinated Notes Payable 62,887 339 2.15 62,887 351 2.19 62,887 372 2.31
Other Long-Term Borrowings 42,898 348 3.29 42,673 383 3.57 38,494 372 3.85
Total Interest Bearing Liabilities 1,664,021 $ 1,183 0.29% 1,572,032 $ 1,232 0.31% 1,630,445 $ 1,295 0.32%
Noninterest Bearing Deposits 599,986 630,520 605,602
Other Liabilities 85,116 78,442 78,446
Total Liabilities 2,349,123 2,280,994 2,314,493
SHAREOWNERS' EQUITY: 249,557 253,017 251,746
Total Liabilities and Shareowners' Equity $ 2,598,680 $ 2,534,011 $ 2,566,239
Interest Rate Spread $ 20,079 3.56% $ 20,697 3.69% $ 21,179 3.73%
Interest Income and Rate Earned(1) 21,262 3.85 21,929 4.00 22,474 4.05
Interest Expense and Rate Paid(2) 1,183 0.21 1,232 0.22 1,295 0.23
Net Interest Margin $ 20,079 3.64% $ 20,697 3.78% $ 21,179 3.82%
(1) Interest and average rates are calculated on a tax-equivalent basis using the 35% Federal tax rate.
(2) Rate calculated based on average earning assets.
CAPITAL CITY BANK GROUP, INC.
AVERAGE BALANCE AND INTEREST RATES(1)
Unaudited
Second Quarter 2012 First Quarter 2012
(Dollars in thousands) Average
Balance
Interest Average
Rate
Average
Balance
Interest Average
Rate
ASSETS:
Loans, Net of Unearned Interest $ 1,570,827 21,456 5.49% $ 1,596,480 22,121 5.57%
Investment Securities
Taxable Investment Securities 216,952 730 1.35 242,481 794 1.31
Tax-Exempt Investment Securities 63,715 161 1.01 56,313 162 1.15
Total Investment Securities 280,667 891 1.27 298,794 956 1.28
Funds Sold 411,353 244 0.24 373,033 225 0.24
Total Earning Assets 2,262,847 $ 22,591 4.01% 2,268,307 $ 23,302 4.13%
Cash and Due From Banks 47,711 49,427
Allowance for Loan Losses (31,599) (31,382)
Other Assets 345,458 350,555
Total Assets $ 2,624,417 $ 2,636,907
LIABILITIES:
Interest Bearing Deposits
NOW Accounts $ 809,172 $ 167 0.08% $ 823,406 $ 192 0.09%
Money Market Accounts 280,371 63 0.09 277,558 75 0.11
Savings Accounts 174,923 21 0.05 165,603 20 0.05
Time Deposits 274,497 305 0.45 284,129 356 0.50
Total Interest Bearing Deposits 1,538,963 556 0.15% 1,550,696 643 0.17%
Short-Term Borrowings 57,983 48 0.33% 45,645 8 0.07%
Subordinated Notes Payable 62,887 372 2.34 62,887 382 2.40
Other Long-Term Borrowings 40,617 396 3.92 44,286 436 3.96
Total Interest Bearing Liabilities 1,700,450 $ 1,372 0.32% 1,703,514 $ 1,469 0.35%
Noninterest Bearing Deposits 596,690 610,692
Other Liabilities 74,633 68,254
Total Liabilities 2,371,773 2,382,460
SHAREOWNERS' EQUITY: 252,644 254,447
Total Liabilities and Shareowners' Equity $ 2,624,417 $ 2,636,907
Interest Rate Spread $ 21,219 3.69% $ 21,833 3.78%
Interest Income and Rate Earned(1) 22,591 4.01 23,302 4.13
Interest Expense and Rate Paid(2) 1,372 0.24 1,469 0.26
Net Interest Margin $ 21,219 3.77% $ 21,833 3.87%
(1) Interest and average rates are calculated on a tax-equivalent basis using the 35% Federal tax rate.
(2) Rate calculated based on average earning assets.

CONTACT: For Information Contact: J. Kimbrough Davis Executive Vice President and Chief Financial Officer 850.402.7820Source:Capital City Bank Group, Inc.