QUARTER HIGHLIGHTS
- Return on assets improved to 1.17% and return on equity to 12.16%
- Diversified revenue and strong balance sheet continue to buffer impact of pandemic and lower interest rates
- Strong performance by Capital City Home Loans (“CCHL”) contributed significantly (
$0.23 per share) - 11% increase in other fee revenues (deposit, bankcard, and wealth management)
- Credit quality remains strong with no significant problem loan migration
- 88% of loan balances extended in the first and second quarter have resumed payments
“Although the environment remains challenging, Capital City reported a strong third quarter, up 12.7% over the second quarter,” said
COVID-19 Update
- Lobby access remains open for all of our banking offices and operations are subject to national guidelines and local safety ordinances to protect both clients and associates – we will continue to monitor changing conditions with the pandemic and its impact on client and associate interactions within our banking offices
- Most operational associates returned to work in early June, but we have extended some remote work arrangements on a case-by-case basis
- Enhanced digital access options are available for banking products and access to sales associates
- We continue to monitor COVID-19 case count trends in our markets and respond appropriately to help ensure client and associate safety
- We continue to support clients with the Small Business Administration Payment Protection Program (“SBA PPP”) by actively assisting with the forgiveness process
Discussion of Operating Results
Summary Overview
Compared to the second quarter of 2020, the
Compared to the third quarter of 2019, the
The
The aforementioned period over period variances reflect the acquisition of a 51% membership interest and consolidation of CCHL late in the first quarter of 2020.
Our return on average assets (“ROA”) was 1.17% and our return on average equity (“ROE”) was 12.16% for the third quarter of 2020. These metrics were 1.10% and 11.03% for the second quarter of 2020, respectively, and 1.14% and 10.51% for the third quarter of 2019, respectively. For the first nine months of 2020, our ROA was 0.96% and our ROE was 9.50% compared to 1.00% and 9.48%, respectively, for the same period of 2019.
Net Interest Income/Net Interest Margin
Tax-equivalent net interest income for the third quarter of 2020 was
The federal funds target rate has remained in the range of 0.00%-0.25% since
Our net interest margin for the third quarter of 2020 was 3.12%, a decrease of 29 basis points from the second quarter of 2020 and 80 basis points from the third quarter of 2019. For the first nine months of 2020, the net interest margin decreased 42 basis points to 3.42%. The decrease compared to all prior periods was primarily attributable to considerable growth in overnight funds which reduced our margin. Our net interest margin for the third quarter of 2020, excluding the impact of SBA PPP loans, was 3.17%. We discuss the effect of the pandemic related stimulus programs on our balance sheet in more detail below under Discussion of Financial Condition.
Provision for Credit Loss
The provision for credit losses for the third quarter of 2020 was
Noninterest Income and Noninterest Expense
CCHL’s mortgage banking operations impacted our noninterest income and noninterest expense for the three and nine month periods ended
Noninterest income for the third quarter of 2020 totaled
Noninterest expense for the third quarter of 2020 totaled
For the first nine months of 2020, noninterest expense totaled
Overall, CCHL has contributed significantly to the improvement in our efficiency ratio for 2020.
Three Months Ended | Nine Months Ended | |||||||||||||||||||
(Dollars in thousands) | Core CCBG | CCHL | Core CCBG | CCHL | Core CCBG | CCHL | Core CCBG | CCHL | Core CCBG | CCHL | ||||||||||
Deposit Fees | $ | 4,316 | - | $ | 3,756 | $ | - | $ | 4,961 | $ | - | $ | 13,087 | $ | - | $ | 14,492 | $ | - | |
3,389 | - | 3,142 | - | 2,972 | - | 9,582 | - | 8,863 | - | |||||||||||
Wealth Management Fees | 2,808 | - | 2,554 | - | 2,992 | - | 7,966 | - | 7,719 | - | ||||||||||
Mortgage Banking Fees | 208 | 22,775 | 241 | 19,156 | 1,587 | - | 1,587 | 44,046 | 3,779 | - | ||||||||||
Other | 1,182 | 287 | 1,147 | 203 | 1,391 | - | 3,787 | 587 | 4,372 | - | ||||||||||
Total Noninterest Income | $ | 11,903 | $ | 23,062 | $ | 10,840 | $ | 19,359 | $ | 13,903 | $ | - | $ | 36,009 | $ | 44,633 | $ | 39,225 | $ | - |
Salaries | $ | 11,603 | $ | 10,753 | $ | 11,596 | $ | 8,381 | $ | 12,533 | $ | - | $ | 36,687 | $ | 21,376 | $ | 37,314 | $ | - |
Other Associate Benefits | 3,616 | 192 | 3,477 | 204 | 3,670 | - | 11,049 | 446 | 11,675 | - | ||||||||||
Total Compensation | 15,219 | 10,945 | 15,073 | 8,585 | 16,203 | - | 47,736 | 21,822 | 48,989 | - | ||||||||||
Occupancy, Net | 5,061 | 845 | 5,030 | 768 | 4,710 | - | 14,839 | 1,844 | 13,756 | - | ||||||||||
Other | 6,930 | 1,342 | 6,599 | 1,248 | 6,960 | - | 19,325 | 3,048 | 21,722 | - | ||||||||||
Total Noninterest Expense | $ | 27,210 | $ | 13,132 | $ | 26,702 | $ | 10,601 | $ | 27,873 | $ | - | $ | 81,900 | $ | 26,714 | $ | 84,467 | $ | - |
Income Taxes
We realized income tax expense of
Discussion of Financial Condition
Earning Assets
Average earning assets were
We maintained an average net overnight funds (deposits with banks plus FED funds sold less FED funds purchased) sold position of
Average loans held for investment (“HFI”) increased
To date, our borrowers have submitted a nominal level of SBA PPP forgiveness applications, but these applications are expected to accelerate over the next six months. Amortized SBA PPP loan fees totaled approximately
Allowance for Credit Losses
At
The adoption of ASC 326 (“CECL”) on
Credit Quality/COVID-19 Exposure
Nonperforming assets (nonaccrual loans and OREO) totaled
We continue to analyze our loan portfolio for segments that have been affected by the stressed economic and business conditions caused by the pandemic. Certain at-risk segments total 8% of our loan balances at
% Loans Extended | |||||||||||||
At October 2, 2020 (Dollars in thousands) | # Loans | Loan Amount | # Loans | $ Loans | |||||||||
Loans Extended | 2,333 | $ | 325,014 | ||||||||||
Loans Resuming Payments | (2,129 | ) | (284,548 | ) | 91 | % | 88 | % | |||||
Loans Still on Extension | 204 | $ | 40,466 | 9 | % | 12 | % |
Funding (Deposits/Debt)
Average total deposits were
Average borrowings increased
Capital
Shareowners’ equity was
At
About
FORWARD-LOOKING STATEMENTS
Forward-looking statements in this Press Release are based on current plans and expectations that are subject to uncertainties and risks, which could cause our future results to differ materially. The following factors, among others, could cause our actual results to differ: the magnitude and duration of the COVID-19 pandemic and its impact on the global economy and financial market conditions and our business, results of operations and financial condition, including the impact of our participation in government programs related to COVID-19; the accuracy of the our financial statement estimates and assumptions; legislative or regulatory changes; fluctuations in inflation, interest rates, or monetary policies; the effects of security breaches and computer viruses that may affect our computer systems or fraud related to debit card products; changes in consumer spending and savings habits; our growth and profitability; the strength of the
USE OF NON-GAAP FINANCIAL MEASURES
We present a tangible common equity ratio and a tangible book value per diluted share that removes the effect of goodwill resulting from merger and acquisition activity. We believe these measures are useful to investors because it allows investors to more easily compare our capital adequacy to other companies in the industry.
The GAAP to non-GAAP reconciliations are provided below.
(Dollars in Thousands, except per share data) | ||||||||||||||||
Shareowners' Equity (GAAP) | $ | 339,425 | $ | 335,057 | $ | 328,507 | $ | 327,016 | $ | 321,562 | ||||||
Less: | 89,095 | 89,095 | 89,275 | 84,811 | 84,811 | |||||||||||
Tangible Shareowners' Equity (non-GAAP) | A | 250,330 | 245,962 | 239,232 | 242,205 | 236,751 | ||||||||||
Total Assets (GAAP) | 3,587,041 | 3,499,524 | 3,086,523 | 3,088,953 | 2,934,513 | |||||||||||
Less: | 89,095 | 89,095 | 89,275 | 84,811 | 84,811 | |||||||||||
Tangible Assets (non-GAAP) | B | $ | 3,497,946 | $ | 3,410,429 | $ | 2,997,248 | $ | 3,004,142 | $ | 2,849,702 | |||||
Tangible Common Equity Ratio (non-GAAP) | A/B | 7.16 | % | 7.21 | % | 7.98 | % | 8.06 | % | 8.31 | % | |||||
Actual Diluted Shares Outstanding (GAAP) | C | 16,800,563 | 16,821,743 | 16,845,462 | 16,855,161 | 16,797,241 | ||||||||||
Tangible Book Value per Diluted Share (non-GAAP) | A/C | $ | 14.90 | $ | 14.62 | $ | 14.20 | $ | 14.37 | $ | 14.09 |
EARNINGS HIGHLIGHTS | |||||||||||||||
Unaudited | |||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||
(Dollars in thousands, except per share data) | |||||||||||||||
EARNINGS | |||||||||||||||
Net Income Attributable to Common Shareowners | $ | 10,397 | $ | 9,146 | $ | 8,481 | $ | 23,830 | $ | 22,242 | |||||
Diluted Net Income Per Share | $ | 0.62 | $ | 0.55 | $ | 0.50 | $ | 1.42 | $ | 1.32 | |||||
PERFORMANCE | |||||||||||||||
Return on Average Assets | 1.17 | % | 1.10 | % | 1.14 | % | 0.96 | % | 1.00 | % | |||||
Return on Average Equity | 12.16 | 11.03 | 10.51 | 9.50 | 9.48 | ||||||||||
Net Interest Margin | 3.12 | 3.41 | 3.92 | 3.42 | 3.84 | ||||||||||
Noninterest Income as % of Operating Revenue | 58.19 | 54.26 | 34.67 | 51.37 | 33.72 | ||||||||||
Efficiency Ratio | 67.01 | % | 66.90 | % | 69.27 | % | 69.04 | % | 72.37 | % | |||||
CAPITAL ADEQUACY | |||||||||||||||
Tier 1 Capital | 16.77 | % | 16.59 | % | 16.83 | % | 16.77 | % | 16.83 | % | |||||
Total Capital | 17.88 | 17.60 | 17.59 | 17.88 | 17.59 | ||||||||||
Leverage | 9.64 | 10.12 | 11.09 | 9.64 | 11.09 | ||||||||||
Common Equity Tier 1 | 14.20 | 14.01 | 14.13 | 14.20 | 14.13 | ||||||||||
Tangible Common Equity (1) | 7.16 | 7.21 | 8.31 | 7.16 | 8.31 | ||||||||||
Equity to Assets | 9.46 | % | 9.57 | % | 10.96 | % | 9.46 | % | 10.96 | % | |||||
ASSET QUALITY | |||||||||||||||
Allowance as % of Non-Performing Loans | 420.30 | % | 322.37 | % | 290.55 | % | 420.30 | % | 290.55 | % | |||||
Allowance as a % of Loans HFI | 1.16 | 1.11 | 0.78 | 1.16 | 0.78 | ||||||||||
Net Charge-Offs as % of Average Loans HFI | 0.11 | 0.05 | 0.23 | 0.13 | 0.15 | ||||||||||
Nonperforming Assets as % of Loans HFI and OREO | 0.34 | 0.40 | 0.30 | 0.34 | 0.30 | ||||||||||
Nonperforming Assets as % of Total Assets | 0.19 | % | 0.23 | % | 0.19 | % | 0.19 | % | 0.19 | % | |||||
STOCK PERFORMANCE | |||||||||||||||
High | $ | 21.71 | $ | 23.99 | $ | 28.00 | $ | 30.62 | $ | 28.00 | |||||
Low | 17.55 | 16.16 | 23.70 | 15.61 | 21.04 | ||||||||||
Close | $ | 18.79 | $ | 20.95 | $ | 27.45 | $ | 18.79 | $ | 27.45 | |||||
Average Daily Trading Volume | 28,517 | 49,569 | 25,596 | 39,477 | 22,815 | ||||||||||
(1) Tangible common equity ratio is a non-GAAP financial measure. For additional information, including a reconciliation to GAAP, refer to Page 6. |
CONSOLIDATED STATEMENT OF FINANCIAL CONDITION | |||||||||||||||
Unaudited | |||||||||||||||
2020 | 2019 | ||||||||||||||
(Dollars in thousands) | Third Quarter | Second Quarter | First Quarter | Fourth Quarter | Third Quarter | ||||||||||
ASSETS | |||||||||||||||
Cash and Due From Banks | $ | 76,509 | $ | 75,155 | $ | 72,676 | $ | 60,087 | $ | 61,151 | |||||
Funds Sold and Interest Bearing Deposits | 626,104 | 513,273 | 196,936 | 318,336 | 177,389 | ||||||||||
Total Cash and Cash Equivalents | 702,613 | 588,428 | 269,612 | 378,423 | 238,540 | ||||||||||
Investment Securities Available for Sale | 328,253 | 341,180 | 382,514 | 403,601 | 376,981 | ||||||||||
Investment Securities Held to Maturity | 202,593 | 232,178 | 251,792 | 239,539 | 240,303 | ||||||||||
530,846 | 573,358 | 634,306 | 643,140 | 617,284 | |||||||||||
Loans Held for Sale ("HFS") | 116,561 | 76,610 | 82,598 | 9,509 | 13,075 | ||||||||||
Loans Held for Investment ("HFI"): | |||||||||||||||
Commercial, Financial, & Agricultural | 402,997 | 421,270 | 249,020 | 255,365 | 259,870 | ||||||||||
Real Estate - Construction | 125,804 | 117,794 | 122,595 | 115,018 | 111,358 | ||||||||||
Real Estate - Commercial | 656,064 | 662,434 | 656,084 | 625,556 | 610,726 | ||||||||||
Real Estate - Residential | 335,713 | 353,831 | 354,150 | 353,642 | 354,545 | ||||||||||
Real Estate - Home Equity | 197,363 | 194,479 | 196,443 | 197,360 | 197,326 | ||||||||||
Consumer | 268,393 | 266,417 | 275,982 | 279,565 | 277,970 | ||||||||||
Other Loans | 10,488 | 4,883 | 6,580 | 7,808 | 14,248 | ||||||||||
Overdrafts | 1,339 | 1,069 | 1,533 | 1,615 | 1,710 | ||||||||||
Total Loans Held for Investment | 1,998,161 | 2,022,177 | 1,862,387 | 1,835,929 | 1,827,753 | ||||||||||
Allowance for Credit Losses | (23,137 | ) | (22,457 | ) | (21,083 | ) | (13,905 | ) | (14,319 | ) | |||||
Loans Held for Investment, Net | 1,975,024 | 1,999,720 | 1,841,304 | 1,822,024 | 1,813,434 | ||||||||||
Premises and Equipment, Net | 87,192 | 87,972 | 87,684 | 84,543 | 85,810 | ||||||||||
89,095 | 89,095 | 89,275 | 84,811 | 84,811 | |||||||||||
Other Real Estate Owned | 1,227 | 1,059 | 1,463 | 953 | 526 | ||||||||||
Other Assets | 84,483 | 83,282 | 80,281 | 65,550 | 81,033 | ||||||||||
Total Other Assets | 261,997 | 261,408 | 258,703 | 235,857 | 252,180 | ||||||||||
Total Assets | $ | 3,587,041 | $ | 3,499,524 | $ | 3,086,523 | $ | 3,088,953 | $ | 2,934,513 | |||||
LIABILITIES | |||||||||||||||
Deposits: | |||||||||||||||
Noninterest Bearing Deposits | $ | 1,378,314 | $ | 1,377,033 | $ | 1,066,607 | $ | 1,044,699 | $ | 1,022,774 | |||||
NOW Accounts | 827,506 | 808,244 | 779,467 | 902,499 | 728,395 | ||||||||||
Money Market Accounts | 247,823 | 240,754 | 210,124 | 217,839 | 239,410 | ||||||||||
Regular Savings Accounts | 451,944 | 423,924 | 384,480 | 374,396 | 372,601 | ||||||||||
Certificates of Deposit | 103,859 | 105,041 | 104,907 | 106,021 | 109,827 | ||||||||||
Total Deposits | 3,009,446 | 2,954,996 | 2,545,585 | 2,645,454 | 2,473,007 | ||||||||||
Short-Term Borrowings | 90,936 | 63,958 | 76,516 | 6,404 | 10,622 | ||||||||||
Subordinated Notes Payable | 52,887 | 52,887 | 52,887 | 52,887 | 52,887 | ||||||||||
Other Long-Term Borrowings | 5,268 | 5,583 | 5,896 | 6,514 | 6,963 | ||||||||||
Other Liabilities | 71,880 | 75,702 | 70,044 | 50,678 | 69,472 | ||||||||||
Total Liabilities | 3,230,417 | 3,153,126 | 2,750,928 | 2,761,937 | 2,612,951 | ||||||||||
Temporary Equity | 17,199 | 11,341 | 7,088 | - | - | ||||||||||
SHAREOWNERS' EQUITY | |||||||||||||||
Common Stock | 168 | 168 | 168 | 168 | 167 | ||||||||||
31,425 | 31,575 | 32,100 | 32,092 | 31,075 | |||||||||||
Retained Earnings | 333,545 | 328,570 | 321,772 | 322,937 | 316,551 | ||||||||||
Accumulated Other Comprehensive Loss, Net of Tax | (25,713 | ) | (25,256 | ) | (25,533 | ) | (28,181 | ) | (26,231 | ) | |||||
Total Shareowners' Equity | 339,425 | 335,057 | 328,507 | 327,016 | 321,562 | ||||||||||
Total Liabilities, Temporary Equity and Shareowners' Equity | $ | 3,587,041 | $ | 3,499,524 | $ | 3,086,523 | $ | 3,088,953 | $ | 2,934,513 | |||||
OTHER BALANCE SHEET DATA | |||||||||||||||
Earning Assets | $ | 3,271,672 | $ | 3,185,418 | $ | 2,776,228 | $ | 2,806,913 | $ | 2,635,501 | |||||
Interest Bearing Liabilities | 1,780,223 | 1,700,391 | 1,614,277 | 1,666,560 | 1,520,705 | ||||||||||
Book Value Per Diluted Share | $ | 20.20 | $ | 19.92 | $ | 19.50 | $ | 19.40 | $ | 19.14 | |||||
Tangible Book Value Per Diluted Share(1) | 14.90 | 14.62 | 14.20 | 14.37 | 14.09 | ||||||||||
Actual Basic Shares Outstanding | 16,761 | 16,780 | 16,812 | 16,772 | 16,749 | ||||||||||
Actual Diluted Shares Outstanding | 16,801 | 16,822 | 16,845 | 16,855 | 16,797 | ||||||||||
(1) Tangible book value per diluted share is a non-GAAP financial measure. For additional information, including a reconciliation to GAAP, refer to Page 6. |
CONSOLIDATED STATEMENT OF OPERATIONS | |||||||||||||||||||
Unaudited | |||||||||||||||||||
Nine Months Ended | |||||||||||||||||||
2020 | 2019 | ||||||||||||||||||
(Dollars in thousands, except per share data) | Third Quarter | Second Quarter | First Quarter | Fourth Quarter | Third Quarter | 2020 | 2019 | ||||||||||||
INTEREST INCOME | |||||||||||||||||||
Interest and Fees on Loans | $ | 23,594 | $ | 23,687 | $ | 23,593 | $ | 23,842 | $ | 23,992 | $ | 70,874 | $ | 70,373 | |||||
2,426 | 2,737 | 3,015 | 3,221 | 3,307 | 8,178 | 10,213 | |||||||||||||
Funds Sold | 146 | 88 | 757 | 945 | 1,142 | 991 | 4,242 | ||||||||||||
Total Interest Income | 26,166 | 26,512 | 27,365 | 28,008 | 28,441 | 80,043 | 84,828 | ||||||||||||
INTEREST EXPENSE | |||||||||||||||||||
Deposits | 190 | 218 | 939 | 1,157 | 1,596 | 1,347 | 5,683 | ||||||||||||
Short-Term Borrowings | 498 | 421 | 132 | 16 | 27 | 1,051 | 93 | ||||||||||||
Subordinated Notes Payable | 316 | 374 | 471 | 525 | 558 | 1,161 | 1,762 | ||||||||||||
Other Long-Term Borrowings | 40 | 41 | 50 | 56 | 63 | 131 | 201 | ||||||||||||
Total Interest Expense | 1,044 | 1,054 | 1,592 | 1,754 | 2,244 | 3,690 | 7,739 | ||||||||||||
Net Interest Income | 25,122 | 25,458 | 25,773 | 26,254 | 26,197 | 76,353 | 77,089 | ||||||||||||
Provision for Credit Losses | 1,308 | 2,005 | 4,990 | (162 | ) | 776 | 8,303 | 2,189 | |||||||||||
Net Interest Income after Provision for Credit Losses | 23,814 | 23,453 | 20,783 | 26,416 | 25,421 | 68,050 | 74,900 | ||||||||||||
NONINTEREST INCOME | |||||||||||||||||||
Deposit Fees | 4,316 | 3,756 | 5,015 | 4,980 | 4,961 | 13,087 | 14,492 | ||||||||||||
3,389 | 3,142 | 3,051 | 3,131 | 2,972 | 9,582 | 8,863 | |||||||||||||
Wealth Management Fees | 2,808 | 2,554 | 2,604 | 2,761 | 2,992 | 7,966 | 7,719 | ||||||||||||
Mortgage Banking Fees | 22,983 | 19,397 | 3,253 | 1,542 | 1,587 | 45,633 | 3,779 | ||||||||||||
Other | 1,469 | 1,350 | 1,555 | 1,414 | 1,391 | 4,374 | 4,372 | ||||||||||||
Total Noninterest Income | 34,965 | 30,199 | 15,478 | 13,828 | 13,903 | 80,642 | 39,225 | ||||||||||||
NONINTEREST EXPENSE | |||||||||||||||||||
Compensation | 26,164 | 23,658 | 19,736 | 17,363 | 16,203 | 69,558 | 48,989 | ||||||||||||
Occupancy, Net | 5,906 | 5,798 | 4,979 | 4,680 | 4,710 | 16,683 | 13,756 | ||||||||||||
Other Real Estate, Net | 219 | 116 | (798 | ) | 102 | 6 | (463 | ) | 444 | ||||||||||
Other | 8,053 | 7,731 | 7,052 | 6,997 | 6,954 | 22,836 | 21,278 | ||||||||||||
Total Noninterest Expense | 40,342 | 37,303 | 30,969 | 29,142 | 27,873 | 108,614 | 84,467 | ||||||||||||
OPERATING PROFIT | 18,437 | 16,349 | 5,292 | 11,102 | 11,451 | 40,078 | 29,658 | ||||||||||||
Income Tax Expense | 3,165 | 2,950 | 1,282 | 2,537 | 2,970 | 7,397 | 7,416 | ||||||||||||
Net Income | 15,272 | 13,399 | 4,010 | 8,565 | 8,481 | 32,681 | 22,242 | ||||||||||||
Pre-Tax Income Attributable to Noncontrolling Interest | (4,875 | ) | (4,253 | ) | 277 | - | - | (8,851 | ) | - | |||||||||
NET INCOME ATTRIBUTABLE TO COMMON SHAREOWNERS | $ | 10,397 | $ | 9,146 | $ | 4,287 | $ | 8,565 | $ | 8,481 | $ | 23,830 | $ | 22,242 | |||||
PER COMMON SHARE | |||||||||||||||||||
Basic Net Income | $ | 0.62 | $ | 0.55 | $ | 0.25 | $ | 0.51 | $ | 0.51 | $ | 1.42 | $ | 1.33 | |||||
Diluted Net Income | 0.62 | 0.55 | 0.25 | 0.51 | 0.50 | 1.42 | 1.32 | ||||||||||||
Cash Dividend | $ | 0.14 | $ | 0.14 | $ | 0.14 | $ | 0.13 | $ | 0.13 | $ | 0.42 | $ | 0.35 | |||||
AVERAGE SHARES | |||||||||||||||||||
Basic | 16,771 | 16,797 | 16,808 | 16,750 | 16,747 | 16,792 | 16,776 | ||||||||||||
Diluted | 16,810 | 16,839 | 16,842 | 16,834 | 16,795 | 16,823 | 16,810 |
ALLOWANCE FOR CREDIT LOSSES | ||||||||||||||||||||||
AND RISK ELEMENT ASSETS | ||||||||||||||||||||||
Unaudited | ||||||||||||||||||||||
Nine Months Ended | ||||||||||||||||||||||
2020 | 2019 | |||||||||||||||||||||
(Dollars in thousands, except per share data) | Third Quarter | Second Quarter | First Quarter | Fourth Quarter | Third Quarter | 2020 | 2019 | |||||||||||||||
ALLOWANCE FOR CREDIT LOSSES | ||||||||||||||||||||||
Balance at Beginning of Period | $ | 22,457 | $ | 21,083 | $ | 13,905 | $ | 14,319 | $ | 14,593 | $ | 13,905 | $ | 14,210 | ||||||||
Impact of Adopting ASC 326 (CECL) | - | - | 3,269 | - | - | 3,269 | - | |||||||||||||||
Provision for Credit Losses - HFI | 1,265 | 1,615 | 4,990 | (162 | ) | 776 | 7,870 | 2,189 | ||||||||||||||
Net Charge-Offs | 585 | 241 | 1,081 | 252 | 1,050 | 1,907 | 2,080 | |||||||||||||||
Balance at End of Period(2) | $ | 23,137 | $ | 22,457 | $ | 21,083 | $ | 13,905 | $ | 14,319 | $ | 23,137 | $ | 14,319 | ||||||||
As a % of Loans HFI | 1.16 | % | 1.11 | % | 1.13 | % | 0.75 | % | 0.78 | % | 1.16 | % | 0.78 | % | ||||||||
As a % of Nonperforming Loans | 420.30 | % | 322.37 | % | 432.61 | % | 310.99 | % | 290.55 | % | 420.30 | % | 290.55 | % | ||||||||
CHARGE-OFFS | ||||||||||||||||||||||
Commercial, Financial and Agricultural | $ | 137 | $ | 186 | $ | 362 | $ | 149 | $ | 289 | $ | 685 | $ | 619 | ||||||||
Real Estate - Construction | - | - | 0 | 58 | 223 | - | 223 | |||||||||||||||
Real Estate - Commercial | 17 | - | 11 | 33 | 26 | 28 | 181 | |||||||||||||||
Real Estate - Residential | 1 | 1 | 110 | 27 | 44 | 112 | 373 | |||||||||||||||
Real Estate - Home Equity | 58 | 52 | 31 | 0 | 333 | 141 | 430 | |||||||||||||||
Consumer | 619 | 634 | 864 | 819 | 744 | 2,117 | 2,059 | |||||||||||||||
Overdrafts(3) | 450 | 541 | 702 | - | - | 1,693 | - | |||||||||||||||
Total Charge-Offs | $ | 1,282 | $ | 1,414 | $ | 2,080 | $ | 1,086 | $ | 1,659 | $ | 4,776 | $ | 3,885 | ||||||||
RECOVERIES | ||||||||||||||||||||||
Commercial, Financial and Agricultural | $ | 74 | $ | 74 | $ | 40 | $ | 127 | $ | 86 | $ | 188 | $ | 218 | ||||||||
Real Estate - Construction | - | - | - | - | - | - | - | |||||||||||||||
Real Estate - Commercial | 30 | 70 | 191 | 266 | 142 | 291 | 312 | |||||||||||||||
Real Estate - Residential | 35 | 51 | 40 | 116 | 46 | 126 | 313 | |||||||||||||||
Real Estate - Home Equity | 41 | 64 | 33 | 25 | 58 | 138 | 150 | |||||||||||||||
Consumer | 280 | 365 | 268 | 300 | 277 | 913 | 812 | |||||||||||||||
Overdrafts(3) | 237 | 549 | 427 | - | - | 1,213 | - | |||||||||||||||
Total Recoveries | $ | 697 | $ | 1,173 | $ | 999 | $ | 834 | $ | 609 | $ | 2,869 | $ | 1,805 | ||||||||
NET CHARGE-OFFS | $ | 585 | $ | 241 | $ | 1,081 | $ | 252 | $ | 1,050 | $ | 1,907 | $ | 2,080 | ||||||||
Net Charge-Offs as a % of Average Loans HFI(1) | 0.11 | % | 0.05 | % | 0.23 | % | 0.05 | % | 0.23 | % | 0.13 | % | 0.15 | % | ||||||||
RISK ELEMENT ASSETS | ||||||||||||||||||||||
Nonaccruing Loans | $ | 5,505 | $ | 6,966 | $ | 4,874 | $ | 4,472 | $ | 4,928 | ||||||||||||
Other Real Estate Owned | 1,227 | 1,059 | 1,463 | 953 | 526 | |||||||||||||||||
Total Nonperforming Assets ("NPAs") | $ | 6,732 | $ | 8,025 | $ | 6,337 | $ | 5,425 | $ | 5,454 | ||||||||||||
Past Due Loans 30-89 Days | $ | 3,191 | $ | 2,948 | $ | 5,077 | $ | 4,871 | $ | 5,120 | ||||||||||||
Past Due Loans 90 Days or More | - | - | - | - | - | |||||||||||||||||
Classified Loans | 16,772 | 17,091 | 16,548 | 20,847 | 21,323 | |||||||||||||||||
Performing Troubled Debt Restructuring's | $ | 14,693 | $ | 15,133 | $ | 15,934 | $ | 16,888 | $ | 18,284 | ||||||||||||
Nonperforming Loans as a % of Loans HFI | 0.28 | % | 0.34 | % | 0.26 | % | 0.24 | % | 0.27 | % | ||||||||||||
NPAs as a % of Loans HFI and | 0.34 | % | 0.40 | % | 0.34 | % | 0.29 | % | 0.30 | % | ||||||||||||
NPAs as a % of Total Assets | 0.19 | % | 0.23 | % | 0.21 | % | 0.18 | % | 0.19 | % | ||||||||||||
(1) Annualized | ||||||||||||||||||||||
(2) Does not include | ||||||||||||||||||||||
(3) Prior to the first quarter 2020, overdraft losses were reflected in noninterest income (deposit fees). |
AVERAGE BALANCE AND INTEREST RATES(1) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Unaudited | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Third Quarter 2020 | Second Quarter 2020 | First Quarter 2020 | Fourth Quarter 2019 | Third Quarter 2019 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
(Dollars in thousands) | Average Balance | Interest | Average Rate | Average Balance | Interest | Average Rate | Average Balance | Interest | Average Rate | Average Balance | Interest | Average Rate | Average Balance | Interest | Average Rate | Average Balance | Interest | Average Rate | Average Balance | Interest | Average Rate | |||||||||||||||||||||||||||||||||||
ASSETS: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loans HFI and HFS | $ | 2,097,700 | $ | 23,698 | 4.50 | % | $ | 2,057,925 | $ | 23,785 | 4.65 | % | $ | 1,882,703 | $ | 23,692 | 5.06 | % | $ | 1,846,190 | 23,958 | 5.15 | % | $ | 1,837,548 | $ | 24,113 | 5.21 | % | $ | 2,013,243 | $ | 71,175 | 4.73 | % | $ | 1,813,964 | $ | 70,705 | 5.21 | % | |||||||||||||||
553,395 | 2,401 | 1.73 | 601,509 | 2,708 | 1.80 | 629,512 | 2,995 | 1.91 | 610,046 | 3,186 | 2.08 | 607,363 | 3,249 | 2.13 | 594,654 | 8,104 | 1.82 | 613,382 | 9,936 | 2.16 | ||||||||||||||||||||||||||||||||||||
4,860 | 32 | 2.66 | 5,865 | 37 | 2.51 | 5,293 | 25 | 1.86 | 10,327 | 43 | 1.67 | 18,041 | 73 | 1.63 | 5,338 | 94 | 2.34 | 29,237 | 347 | 1.59 | ||||||||||||||||||||||||||||||||||||
558,255 | 2,433 | 1.74 | 607,374 | 2,745 | 1.81 | 634,805 | 3,020 | 1.91 | 620,373 | 3,229 | 2.08 | 625,404 | 3,322 | 2.12 | 599,992 | 8,198 | 1.82 | 642,619 | 10,283 | 2.13 | ||||||||||||||||||||||||||||||||||||
Funds Sold | 567,883 | 146 | 0.10 | 351,473 | 88 | 0.10 | 234,372 | 757 | 1.30 | 228,137 | 945 | 1.64 | 207,129 | 1,142 | 2.19 | 385,245 | 991 | 0.34 | 241,323 | 4,242 | 2.35 | |||||||||||||||||||||||||||||||||||
Total Earning Assets | 3,223,838 | $ | 26,277 | 3.25 | % | 3,016,772 | $ | 26,618 | 3.55 | % | 2,751,880 | $ | 27,469 | 4.01 | % | 2,694,700 | $ | 28,132 | 4.14 | % | 2,670,081 | $ | 28,577 | 4.25 | % | 2,998,480 | $ | 80,364 | 3.58 | % | 2,697,906 | $ | 85,230 | 4.22 | % | |||||||||||||||||||||
Cash and Due From Banks | 69,893 | 72,647 | 56,958 | 53,174 | 50,981 | 66,512 | 52,210 | |||||||||||||||||||||||||||||||||||||||||||||||||
Allowance for Loan Losses | (22,948 | ) | (21,642 | ) | (14,389 | ) | (14,759 | ) | (14,863 | ) | (19,672 | ) | (14,576 | ) | ||||||||||||||||||||||||||||||||||||||||||
Other Assets | 268,549 | 261,449 | 244,339 | 249,089 | 253,111 | 257,993 | 253,152 | |||||||||||||||||||||||||||||||||||||||||||||||||
Total Assets | $ | 3,539,332 | $ | 3,329,226 | $ | 3,038,788 | $ | 2,982,204 | $ | 2,959,310 | $ | 3,303,313 | $ | 2,988,692 | ||||||||||||||||||||||||||||||||||||||||||
LIABILITIES: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Interest Bearing Deposits | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
NOW Accounts | $ | 826,776 | $ | 61 | 0.03 | % | $ | 789,378 | $ | 78 | 0.04 | % | $ | 808,811 | $ | 725 | 0.36 | % | $ | 755,625 | $ | 889 | 0.47 | % | $ | 749,678 | $ | 1,235 | 0.65 | % | $ | 808,389 | $ | 864 | 0.14 | % | $ | 821,819 | $ | 4,613 | 0.75 | % | ||||||||||||||
Money Market Accounts | 247,185 | 32 | 0.05 | 222,377 | 40 | 0.07 | 212,211 | 117 | 0.22 | 227,479 | 170 | 0.30 | 238,565 | 264 | 0.44 | 227,331 | 189 | 0.11 | 238,664 | 775 | 0.43 | |||||||||||||||||||||||||||||||||||
Savings Accounts | 438,762 | 54 | 0.05 | 409,366 | 50 | 0.05 | 379,237 | 46 | 0.05 | 372,518 | 46 | 0.05 | 372,593 | 46 | 0.05 | 409,230 | 150 | 0.05 | 369,726 | 136 | 0.05 | |||||||||||||||||||||||||||||||||||
Time Deposits | 104,522 | 43 | 0.16 | 104,718 | 50 | 0.19 | 105,542 | 51 | 0.19 | 108,407 | 52 | 0.19 | 111,447 | 51 | 0.18 | 104,925 | 144 | 0.18 | 115,215 | 159 | 0.18 | |||||||||||||||||||||||||||||||||||
Total Interest Bearing Deposits | 1,617,245 | 190 | 0.05 | % | 1,525,839 | 218 | 0.06 | % | 1,505,801 | 939 | 0.25 | % | 1,464,029 | 1,157 | 0.31 | % | 1,472,283 | 1,596 | 0.43 | % | 1,549,875 | 1,347 | 0.12 | % | 1,545,424 | 5,683 | 0.49 | % | ||||||||||||||||||||||||||||
Short-Term Borrowings | 74,557 | 498 | 2.66 | % | 73,377 | 421 | 2.31 | % | 32,915 | 132 | 1.61 | % | 7,448 | 16 | 0.87 | % | 8,697 | 27 | 1.24 | % | 60,335 | 1,051 | 2.33 | % | 9,890 | 93 | 1.27 | % | ||||||||||||||||||||||||||||
Subordinated Notes Payable | 52,887 | 316 | 2.34 | 52,887 | 374 | 2.80 | 52,887 | 471 | 3.52 | 52,887 | 525 | 3.88 | 52,887 | 558 | 4.13 | 52,887 | 1,161 | 2.89 | 52,887 | 1,762 | 4.39 | |||||||||||||||||||||||||||||||||||
Other Long-Term Borrowings | 5,453 | 40 | 2.91 | 5,766 | 41 | 2.84 | 6,312 | 50 | 3.21 | 6,723 | 56 | 3.33 | 7,158 | 63 | 3.47 | 5,842 | 131 | 3.00 | 7,619 | 201 | 3.52 | |||||||||||||||||||||||||||||||||||
Total Interest Bearing Liabilities | 1,750,142 | $ | 1,044 | 0.24 | % | 1,657,869 | $ | 1,054 | 0.26 | % | 1,597,915 | $ | 1,592 | 0.40 | % | 1,531,087 | $ | 1,754 | 0.45 | % | 1,541,025 | $ | 2,244 | 0.58 | % | 1,668,939 | $ | 3,690 | 0.30 | % | 1,615,820 | $ | 7,739 | 0.64 | % | |||||||||||||||||||||
Noninterest Bearing Deposits | 1,354,032 | 1,257,614 | 1,046,889 | 1,060,922 | 1,023,472 | 1,220,002 | 996,290 | |||||||||||||||||||||||||||||||||||||||||||||||||
Other Liabilities | 83,192 | 72,073 | 59,587 | 63,291 | 74,540 | 71,661 | 62,823 | |||||||||||||||||||||||||||||||||||||||||||||||||
Total Liabilities | 3,187,366 | 2,987,556 | 2,704,391 | 2,655,300 | 2,639,037 | 2,960,602 | 2,674,933 | |||||||||||||||||||||||||||||||||||||||||||||||||
Temporary Equity | 11,893 | 8,155 | 2,506 | - | - | 7,534 | - | |||||||||||||||||||||||||||||||||||||||||||||||||
SHAREOWNERS' EQUITY: | 340,073 | 333,515 | 331,891 | 326,904 | 320,273 | 335,177 | 313,759 | |||||||||||||||||||||||||||||||||||||||||||||||||
Total Liabilities, Temporary Equity and Shareowners' Equity | $ | 3,539,332 | $ | 3,329,226 | $ | 3,038,788 | $ | 2,982,204 | $ | 2,959,310 | $ | 3,303,313 | $ | 2,988,692 | ||||||||||||||||||||||||||||||||||||||||||
Interest Rate Spread | $ | 25,233 | 3.01 | % | $ | 25,564 | 3.30 | % | $ | 25,877 | 3.61 | % | $ | 26,378 | 3.69 | % | $ | 26,333 | 3.67 | % | $ | 76,674 | 3.29 | % | $ | 77,491 | 3.58 | % | ||||||||||||||||||||||||||||
Interest Income and Rate Earned(1) | 26,277 | 3.25 | 26,618 | 3.55 | 27,469 | 4.01 | 28,132 | 4.14 | 28,577 | 4.25 | 80,364 | 3.58 | 85,230 | 4.22 | ||||||||||||||||||||||||||||||||||||||||||
Interest Expense and Rate Paid(2) | 1,044 | 0.13 | 1,054 | 0.14 | 1,592 | 0.23 | 1,754 | 0.26 | 2,244 | 0.33 | 3,690 | 0.16 | 7,739 | 0.38 | ||||||||||||||||||||||||||||||||||||||||||
Net Interest Margin | $ | 25,233 | 3.12 | % | $ | 25,564 | 3.41 | % | $ | 25,877 | 3.78 | % | $ | 26,378 | 3.89 | % | $ | 26,333 | 3.92 | % | $ | 76,674 | 3.42 | % | $ | 77,491 | 3.84 | % | ||||||||||||||||||||||||||||
(1) Interest and average rates are calculated on a tax-equivalent basis using a 21% Federal tax rate. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(2) Rate calculated based on average earning assets. |
For Information Contact:
Executive Vice President and Chief Financial Officer
850.402.7820
Source:
2020 GlobeNewswire, Inc., source