TALLAHASSEE, Fla., April 20, 2026 (GLOBE NEWSWIRE) -- Capital City Bank Group, Inc. (NASDAQ: CCBG) today reported net income attributable to common shareowners of $15.8 million, or $0.92 per diluted share, for the first quarter of 2026 compared to $13.7 million, or $0.80 per diluted share, for the fourth quarter of 2025, and $16.9 million, or $0.99 per diluted share, for the first quarter of 2025.
Return on Assets of 1.45% and Return on Equity of 11.30% for the first quarter of 2026 compared to 1.25% and 9.78%, respectively for the fourth quarter of 2025, and 1.58% and 13.32%, respectively for the first quarter of 2025.
QUARTER HIGHLIGHTS (1st Quarter 2026 versus 4th Quarter 2025)
Income Statement
- Tax-equivalent net interest income totaled $42.9 million compared to $43.4 million for the prior quarter and reflected two less calendar days in the first quarter
- Net interest margin decreased two basis points to 4.24%
- Credit quality metrics remained stable, with net loan charge‑offs of 10 basis points (annualized) of average loans, while the allowance coverage ratio increased one basis point to 1.23% as of March 31, 2026
- Noninterest income decreased $0.2 million, or 0.8%, and reflected lower wealth management fees of $0.5 million and deposit fees of $0.2 million, partially offset by a miscellaneous recovery of $0.5 million
- Noninterest expense decreased $1.5 million, or 3.5%, primarily due to a $2.7 million decrease in compensation expense (lower performance-based incentives) that was partially offset by an increase in other expense which reflected a $1.5 million pension plan settlement gain recognized in the prior quarter
Balance Sheet
- Loan balances decreased $29.8 million, or 1.2% (average), and decreased $27.7 million, or 1.1% (end of period)
- Deposit balances increased by $43.5 million, or 1.2% (average), and increased $89.3 million, or 2.4% (end of period), driven by strong core deposit growth
- Tangible book value per diluted share (non-GAAP financial measure) increased $0.48, or 1.8%
- Repurchased 63,088 shares of our common stock
“We are off to a strong start to the year, with earnings growth of 15% over the prior quarter driven by solid deposit trends, disciplined credit performance, and continued expense control,” said William G. Smith, Jr., Chairman and CEO. “We remain focused on deepening client relationships and executing consistently, while maintaining the balance sheet strength and flexibility to perform across a range of economic conditions.”
Discussion of Operating Results
Net Interest Income/Net Interest Margin
Tax-equivalent net interest income for the first quarter of 2026 totaled $42.9 million, compared to $43.4 million for the fourth quarter of 2025, and $41.6 million for the first quarter of 2025. Compared to the fourth quarter of 2025, the decrease was primarily driven by lower loan interest income due to lower average loan balances and lower overnight funds income, partially offset by higher investment securities income due to new investment purchases at higher yields and lower deposit interest expense. Two less calendar days contributed to the decline compared to the fourth quarter of 2025. Compared to the first quarter of 2025, the increase was primarily attributable to higher investment securities income due to new investment purchases at higher yields and higher overnight funds income due to higher average balances that outpaced a decrease in loan interest income due to lower average balances.
Our net interest margin for the first quarter of 2026 was 4.24%, a decrease of two basis points from the fourth quarter of 2025 and an increase of two basis points over the first quarter of 2025. Compared to the fourth quarter of 2025 the decrease was primarily attributable to a lower overnight funds rate and lower average loan balances. Compared to the first quarter of 2025, the increase reflected favorable investment securities repricing partially offset by a lower overnight funds rate and lower average loan balances. For the first quarter of 2026, our cost of funds was 81 basis points, a decrease of one basis point from the fourth quarter of 2025 and a decrease of three basis points from the first quarter of 2025. Our cost of deposits (including noninterest bearing accounts) was 81 basis points, 82 basis points, and 82 basis points, respectively, for the same periods.
Provision for Credit Losses
We recorded a provision expense for credit losses of $0.7 million for the first quarter of 2026, compared to $2.0 million for the fourth quarter of 2025 and $0.8 million for the first quarter of 2025. Activity within the components of the provision (loans held for investment (“HFI”) and unfunded loan commitments) for each reported period is provided in the table on page 14. We discuss the various factors that impacted our provision expense for Loans HFI in further detail below under the heading Allowance for Credit Losses.
Noninterest Income and Noninterest Expense
Noninterest income for the first quarter of 2026 totaled $19.9 million, a $0.2 million, or 0.8%, decrease from the fourth quarter of 2025 and similar to the first quarter of 2025. The decrease from the fourth quarter of 2025 reflected a $0.5 million decrease in wealth management fees and a $0.2 million decrease in deposit fees, partially offset by a $0.5 million increase in other income. The decline in wealth management fees was primarily due to a decrease in retail brokerage fees. The increase in other income was due to a $0.5 million miscellaneous recovery. Compared to the first quarter of 2025, a $1.7 million decrease in wealth management fees was offset by a $0.7 million increase in other income, a $0.5 million increase in deposit related fees, and a $0.4 million increase in mortgage banking revenues. The decline in wealth management fees was attributable to a decrease in retail brokerage assets under management and lower insurance commission revenue due to the sale of our insurance subsidiary in 2025. The increase in other income reflected the aforementioned miscellaneous recovery of $0.5 million.
Noninterest expense for the first quarter of 2026 totaled $41.4 million, a $1.5 million, or 3.5%, decrease from the fourth quarter of 2025 and a $2.7 million, or 6.9%, increase over the first quarter of 2025. The decrease from the fourth quarter of 2025 reflected a $2.7 million decrease in compensation expense, partially offset by a $1.2 million increase in other expense. The decrease in compensation expense was primarily due to higher performance-based incentive pay of $2.6 million in the fourth quarter of 2025. The increase in other expense reflected a $1.5 million pension plan settlement gain recorded in the fourth quarter of 2025. Compared to the first quarter of 2025, the increase reflected a $2.9 million increase in other expense and a $0.3 million increase in occupancy expense, which was partially offset by a $0.5 million decrease in compensation expense. The increase in other expense was primarily attributable to a $4.1 million increase in other real estate expense that reflected a gain from the sale of our operations center building in the first quarter of 2025, partially offset by decreases in charitable contributions, professional fees, and other miscellaneous expenses. The increase in occupancy expense was primarily attributable to higher expense for maintenance agreements and software. The decrease in compensation expense reflected a decrease in commission expense related to the sale of our insurance subsidiary.
Income Taxes
We realized income tax expense of $4.8 million (effective rate of 23.5%) for the first quarter of 2026, compared to $4.9 million (effective rate of 26.3%) for the fourth quarter of 2025 and $5.1 million (effective rate of 23.3%) for the first quarter of 2025. Compared to the fourth quarter of 2025, the variance in the effective tax rate reflected discrete items for both quarters, including a benefit in the first quarter of 2026 related to stock-based compensation and an expense in the fourth quarter of 2025 related to an Internal Revenue Code (“IRC”) Section 162(m) limitation for executive compensation. Absent discrete items or new tax credit investments, we expect our annual effective tax rate to approximate 24% for 2026.
Discussion of Financial Condition
Earning Assets
Average earning assets totaled $4.090 billion for the first quarter of 2026, an increase of $53.9 million, or 1.3% over the fourth quarter of 2025, and an increase of $95.9 million, or 2.4% over the first quarter of 2025. Compared to the fourth quarter of 2025, the change in earning asset mix reflected a $113.1 million increase in investment securities and a $0.5 million increase in loans held for sale (“HFS”), partially offset by a $29.9 million decrease in overnight funds sold and a $29.8 million decrease in loans held for investment. Compared to the first quarter of 2025, the increase was primarily attributable to a $136.8 million increase in investment securities and an $86.7 million increase in overnight funds sold, partially offset by a $127.6 million decrease in loans held for investment.
Average loans HFI decreased by $29.8 million, or 1.16% from the fourth quarter of 2025, and decreased by $127.6 million, or 4.8% from the first quarter of 2025. Compared to the fourth quarter of 2025, the decline was primarily attributable to decreases in residential real estate loans of $16.3 million, commercial real estate loans of $10.2 million, construction loans of $4.2 million, consumer loans (primarily indirect auto) of $2.3 million, and commercial loans of $1.5 million, partially offset by an increase in home equity loans of $4.0 million. Compared to the first quarter of 2025, the decline was primarily attributable to declines in construction loans of $56.8 million, commercial real estate loans of $32.6 million, consumer loans (primarily indirect auto) of $23.4 million, residential real estate loans of $21.8 million, and commercial loans of $11.3 million, partially offset by an increase in home equity loans of $19.1 million.
Loans HFI at March 31, 2026, decreased by $27.7 million, or 1.1%, from December 31, 2025, and decreased by $142.4 million, or 5.4%, from March 31, 2025. Compared to December 31, 2025, the decline was primarily due to decreases in residential real estate loans of $22.2 million, commercial real estate loans of $12.9 million, commercial loans of $10.1 million, other loans of $7.6 million and consumer loans (primarily indirect auto) of $2.8 million, partially offset by increases in construction loans of $9.7 million and home equity loans of $3.0 million. Compared to the first quarter of 2025, the decrease was primarily attributable to declines in commercial real estate loans of $51.1 million, residential real estate loans of $41.9 million, construction loans of $35.7 million, consumer loans (primarily indirect auto) of $26.7 million, and commercial loans of $14.1 million, partially offset by an increase in home equity loans of $17.9 million.
Allowance for Credit Losses
At March 31, 2026, the allowance for credit losses for loans HFI totaled $31.0 million comparable to $31.0 million and $29.7 million at December 31, 2025 and March 31, 2025, respectively. Activity within the allowance is provided on Page 10. The slight increase in the allowance over March 31, 2025 was primarily attributable to utilization of a higher forecasted unemployment rate in calculating loan loss rates. Net loan charge-offs were 10 basis points of average loans for the first quarter of 2026 versus 18 basis points for the fourth quarter of 2025 and 9 basis points for the first quarter of 2025. At March 31, 2026, the allowance represented 1.23% of loans HFI compared to 1.22% at December 31, 2025, and 1.12% at March 31, 2025.
Credit Quality
Nonperforming assets (nonaccrual loans and other real estate) totaled $13.0 million at March 31, 2026 compared to $10.5 million at December 31, 2025 and $4.4 million at March 31, 2025. At March 31, 2026, nonperforming assets as a percentage of total assets was 0.29%, compared to 0.24% at December 31, 2025 and 0.10% at March 31, 2025. Nonaccrual loans totaled $11.1 million at March 31, 2026, a $2.5 million increase over December 31, 2025 and a $6.8 million increase over March 31, 2025. The increase over December 31, 2025 was primarily attributable to the addition of four residential 1-4 family real estate loans totaling $1.9 million. Other real estate totaled $1.8 million at March 31, 2026 and reflected the addition of a banking office property for $1.2 million during the first quarter of 2026. Further, classified loans totaled $14.5 million at March 31, 2026, a $0.2 million increase over December 31, 2025 and a $4.6 million decrease from March 31, 2025.
Deposits
Average total deposits were $3.691 billion for the first quarter of 2026, an increase of $43.5 million, or 1.2%, over the fourth quarter of 2025 and an increase of $25.5 million, or 0.7%, over the first quarter of 2025. Compared to the fourth quarter of 2025, the increase was primarily attributable to higher public funds balances of $99 million, driven by seasonal inflows from municipal clients as they receive their tax receipts beginning in late November, partially offset by declines in core deposits of $64 million (noninterest bearing and interest bearing DDAs). The increase over the first quarter of 2025 was due to growth in both core deposit balances, and public funds.
At March 31, 2026, total deposits were $3.752 billion, an increase of $89.3 million, or 2.4%, over December 31, 2025, and a decrease of $32.3 million, or 0.9%, from March 31, 2025. The increase over December 31, 2025, was driven by higher core deposit balances of $103 million (primarily noninterest bearing and NOW accounts), partially offset by a decrease in public funds balances of $25 million (primarily NOW accounts). The decrease from March 31, 2025, was primarily due to lower public funds balances (noninterest bearing accounts). Total public funds balances were $629.9 million at March 31, 2026, $654.7 million at December 31, 2025, and $648.0 million at March 31, 2025.
Liquidity
The Bank maintained an average net overnight funds (i.e., deposits with banks plus FED funds sold, less FED funds purchased) sold position of $407.7 million in the first quarter of 2026 compared to $437.5 million in the fourth quarter of 2025 and $320.9 million in the first quarter of 2025. Compared to both prior periods, the variance reflected higher average deposits and lower average loans and the deployment of excess liquidity into the investment security portfolio.
We also view our investment portfolio as a liquidity source as we have the option to pledge securities in our portfolio as collateral for borrowings or deposits, and/or to sell selected securities in our portfolio. Our portfolio consists of debt issued by the U.S. Treasury, U.S. governmental agencies, municipal governments, and corporate entities. At March 31, 2026, the weighted-average maturity and duration of our portfolio were 2.98 years and 2.64 years, respectively, and the available-for-sale portfolio had a net unrealized after-tax loss of $11.7 million.
At March 31, 2026, we had the ability to generate approximately $1.651 billion (excludes overnight funds position of $425 million) in additional liquidity through various sources including various federal funds purchased lines, Federal Home Loan Bank borrowings, the Federal Reserve Discount Window, and brokered deposits.
Capital
Shareowners’ equity was $559.9 million at March 31, 2026 compared to $552.9 million at December 31, 2025 and $512.6 million at March 31, 2025. For the first three months of 2026, shareowners’ equity was positively impacted by net income attributable to shareowners of $15.8 million, the issuance of stock of $2.8 million, and stock compensation accretion of $0.5 million. Shareowners’ equity was reduced by a common stock dividend of $4.6 million ($0.27 per share), repurchases of our common stock of $2.6 million (63,088 shares), net adjustments totaling $2.6 million related to transactions under our stock-based compensation plans, and a net $2.3 million decrease in the accumulated other comprehensive gain. The net unfavorable change in accumulated other comprehensive gain was primarily due to a $2.2 million increase in the investment securities loss.
At March 31, 2026, our total risk-based capital ratio was 21.62%, compared to 21.45% at December 31, 2025 and 19.20% at March 31, 2025. Our common equity tier 1 capital ratio was 19.08%, 18.56%, and 16.08%, respectively, on these dates. Our leverage ratio was 11.65%, 11.77%, and 11.17%, respectively, on these dates. At March 31, 2026, all our regulatory capital ratios exceeded the thresholds to be designated as “well-capitalized” under the Basel III capital standards. Further, our tangible common equity ratio (non-GAAP financial measure) was 10.79% at March 31, 2026 and December 31, 2025, compared to 9.61% at March 31, 2025. If our unrealized held-to-maturity securities loss of $7.2 million (after-tax) were recognized in accumulated other comprehensive loss, our adjusted tangible capital ratio would be 10.62%.
About Capital City Bank Group, Inc.
Capital City Bank Group, Inc. (NASDAQ: CCBG) is one of the largest publicly traded financial holding companies headquartered in Florida and has approximately $4.5 billion in assets. We provide a full range of banking services, including traditional deposit and credit services, mortgage banking, asset management, trust, merchant services, bankcards, and securities brokerage services. Our bank subsidiary, Capital City Bank, was founded in 1895 and has 62 banking offices and 107 ATMs/ITMs in Florida, Georgia and Alabama. For more information about Capital City Bank Group, Inc., visit https://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 our future results to differ materially. The words “may,” “could,” “should,” “would,” “believe,” “anticipate,” “estimate,” “expect,” “intend,” “plan,” “target,” “vision,” “goal,” and similar expressions are intended to identify forward-looking statements. The following factors, among others, could cause our actual results to differ: the effects of and changes in trade and monetary and fiscal policies and laws, including the interest rate policies of the Federal Reserve Board; inflation, interest rate, market and monetary fluctuations; local, regional, national, and international economic conditions and the impact they may have on us and our clients and our assessment of that impact; supply-demand imbalances and general economic conditions affecting local real estate prices and a general deterioration in commercial real estate market fundamentals; the costs and effects of legal and regulatory developments, the outcomes of legal proceedings or regulatory or other governmental inquiries, the results of regulatory examinations or reviews and the ability to obtain required regulatory approvals; the effect of changes in laws and regulations (including laws and regulations concerning taxes, banking, securities, and insurance) and their application with which we and our subsidiaries must comply; the effect of changes in accounting policies and practices, as may be adopted by the regulatory agencies, as well as other accounting standard setters; the accuracy of our financial statement estimates and assumptions; changes in the financial performance and/or condition of our borrowers; changes in the mix of loan geographies, sectors and types or the level of non-performing assets and charge-offs; changes in estimates of future credit loss reserve requirements based upon the periodic review thereof under relevant regulatory and accounting requirements; changes in our liquidity position; the timely development and acceptance of new products and services and perceived overall value of these products and services by users; changes in consumer spending, borrowing, and saving habits; greater than expected costs or difficulties related to the integration of new products and lines of business; technological changes, including the impact of generative artificial intelligence; the costs and effects of cyber incidents or other failures, interruptions, or security breaches of our systems or those of our customers or third-party providers; dispositions (including the impact from the sale of our insurance subsidiary); acquisitions and integration of acquired businesses; impairment of our goodwill or other intangible assets; changes in the reliability of our vendors, internal control systems, or information systems; our ability to increase market share and control expenses; our ability to attract and retain qualified employees; changes in our organization, compensation, and benefit plans; the soundness of other financial institutions; volatility and disruption in national and international financial and commodity markets; changes in the competitive environment in our markets and among banking organizations and other financial service providers; action or inaction by the federal government, including tariffs or trade wars (including potential resulting reduced consumer spending, lower economic growth or recession, reduced demand for U.S. exports, disruptions to supply chains, and decreased demand for other banking products and services), government intervention in the U.S. financial system; policies related to credit card interest rates, and legislative, regulatory or supervisory actions related to so-called “de-banking,” including any new prohibitions, requirements or enforcement priorities that could affect customer relationships, compliance obligations, or operational practices; the effects of natural disasters (including hurricanes), widespread health emergencies (including pandemics), military conflict (including impacts related to the conflict in the Middle East and resulting disruptions to energy and other commodities markets and supply chains), terrorism, civil unrest, climate change or other geopolitical events; our ability to declare and pay dividends; structural changes in the markets for origination, sale and servicing of residential mortgages; any inability to implement and maintain effective internal control over financial reporting and/or disclosure control; negative publicity and the impact on our reputation; and the limited trading activity and concentration of ownership of our common stock. Additional factors can be found in our Annual Report on Form 10-K for the fiscal year ended December 31, 2025 and our other filings with the SEC, which are available at the SEC’s internet site (https://www.sec.gov). Forward-looking statements in this Press Release speak only as of the date of the Press Release, and we assume no obligation to update forward-looking statements or the reasons why actual results could differ, except as may be required by law.
USE OF NON-GAAP FINANCIAL MEASURES
Unaudited
We present a tangible common equity ratio and a tangible book value per diluted share that removes the effect of goodwill and other intangibles resulting from merger and acquisition activity. We believe these measures are useful to investors because they allow investors to more easily compare our capital adequacy to other companies in the industry. Non-GAAP financial measures should not be considered alternatives to GAAP-basis financial statements and other bank holding companies may define or calculate these non-GAAP measures or similar measures differently.
The GAAP to non-GAAP reconciliations are provided below.
(Dollars in Thousands, except per share data)Mar 31, 2026Dec 31, 2025Sep 30, 2025Jun 30, 2025Mar 31, 2025Shareowners' Equity (GAAP) $559,912 $552,851 $540,635 $526,423 $512,575 Less: Goodwill and Other Intangibles (GAAP) 89,095 89,095 89,095 92,693 92,733 Tangible Shareowners' Equity (non-GAAP)A 470,817 463,756 451,540 433,730 419,842 Total Assets (GAAP) 4,453,734 4,385,765 4,323,774 4,391,753 4,461,233 Less: Goodwill and Other Intangibles (GAAP) 89,095 89,095 89,095 92,693 92,733 Tangible Assets (non-GAAP)B$4,364,639 $4,296,670 $4,234,679 $4,299,060 $4,368,500 Tangible Common Equity Ratio (non-GAAP)A/B 10.79% 10.79% 10.66% 10.09% 9.61%Actual Diluted Shares Outstanding (GAAP)C 17,114,954 17,154,586 17,115,336 17,097,986 17,072,330 Tangible Book Value per Diluted Share (non-GAAP)A/C$27.51 $27.03 $26.38 $25.37 $24.59Quarter Fourth
Quarter Third
Quarter Second
Quarter First
QuarterINTEREST INCOME Loans, including Fees$38,254$39,565$40,279$40,872$40,478Investment Securities 9,055 7,768 7,188 6,678 5,808Federal Funds Sold and Interest Bearing Deposits 3,711 4,382 3,964 3,909 3,496Total Interest Income 51,020 51,715 51,431 51,459 49,782INTEREST EXPENSE Deposits 7,395 7,544 7,265 7,405 7,383Repurchase Agreements 73 134 158 156 164Other Short-Term Borrowings 327 217 58 179 117Subordinated Notes Payable 398 451 383 530 560Other Long-Term Borrowings 10 9 10 5 11Total Interest Expense 8,203 8,355 7,874 8,275 8,235Net Interest Income 42,817 43,360 43,557 43,184 41,547Provision for Credit Losses 712 1,995 1,881 620 768Net Interest Income after Provision for Credit Losses 42,105 41,365 41,676 42,564 40,779NONINTEREST INCOME Deposit Fees 5,598 5,811 5,877 5,320 5,061Bank Card Fees 3,630 3,684 3,733 3,774 3,514Wealth Management Fees 4,051 4,525 5,173 5,206 5,763Mortgage Banking Revenues 4,252 4,155 4,794 4,190 3,820Other 2,402 1,928 2,754 1,524 1,749Total Noninterest Income 19,933 20,103 22,331 20,014 19,907NONINTEREST EXPENSE Compensation 25,703 28,384 26,056 26,490 26,248Occupancy, Net 7,083 7,052 7,037 7,071 6,793Other 8,587 7,431 9,823 8,977 5,660Total Noninterest Expense 41,373 42,867 42,916 42,538 38,701OPERATING PROFIT 20,665 18,601 21,091 20,040 21,985Income Tax Expense 4,848 4,896 5,141 4,996 5,127Net Income 15,817 13,705 15,950 15,044 16,858NET INCOME ATTRIBUTABLE TO
COMMON SHAREOWNERS$15,817$13,705$15,950$15,044$16,858PER COMMON SHARE Basic Net Income$0.92$0.80$0.93$0.88$0.99Diluted Net Income 0.92 0.80 0.93 0.88 0.99Cash Dividend$0.27$0.26$0.26$0.24$0.24AVERAGE SHARES Basic 17,129 17,070 17,068 17,056 17,027Diluted 17,146 17,140 17,114 17,088 17,044
Quarter Fourth
Quarter Third
Quarter Second
Quarter First
QuarterACL - HELD FOR INVESTMENT LOANS Balance at Beginning of Period$31,001 $30,202 $29,862 $29,734 $29,251 Provision for Credit Losses 635 1,984 1,550 718 1,083 Net Charge-Offs (Recoveries) 637 1,185 1,210 590 600 Balance at End of Period$30,999 $31,001 $30,202 $29,862 $29,734 As a % of Loans HFI 1.23% 1.22% 1.17% 1.13% 1.12%As a % of Nonperforming Loans 278.19% 360.69% 368.54% 463.01% 692.10%ACL - UNFUNDED COMMITMENTS Balance at Beginning of Period 2,107 $2,095 $1,738 $1,832 $2,155 Provision for Credit Losses 82 12 357 (94) (323)Balance at End of Period(1) 2,189 2,107 2,095 1,738 1,832 ACL - DEBT SECURITIES Provision for Credit Losses$(5)$(1)$(26)$(4)$8 CHARGE-OFFS Commercial, Financial and Agricultural$300 $167 $373 $74 $168 Real Estate - Commercial - 4 - - - Real Estate - Residential - 67 12 49 8 Real Estate - Home Equity 13 10 10 24 - Consumer 852 925 954 914 865 Overdrafts 631 670 619 437 570 Total Charge-Offs$1,796 $1,843 $1,968 $1,498 $1,611 RECOVERIES Commercial, Financial and Agricultural$74 $44 $95 $117 $75 Real Estate - Commercial 84 29 8 6 3 Real Estate - Residential 77 8 13 65 119 Real Estate - Home Equity 10 6 10 42 9 Consumer 579 246 369 456 481 Overdrafts 335 325 263 222 324 Total Recoveries$1,159 $658 $758 $908 $1,011 NET CHARGE-OFFS (RECOVERIES)$637 $1,185 $1,210 $590 $600 Net Charge-Offs as a % of Average Loans HFI(2) 0.10% 0.18% 0.18% 0.09% 0.09%CREDIT QUALITY Nonaccruing Loans$11,143 $8,595 $8,195 $6,449 $4,296 Other Real Estate Owned 1,822 1,936 1,831 132 132 Total Nonperforming Assets ("NPAs")$12,965 $10,531 $10,026 $6,581 $4,428 Past Due Loans 30-89 Days$6,643 $7,017 $5,468 $4,523 $3,735 Classified Loans 14,545 14,334 26,512 28,623 19,194 Nonperforming Loans as a % of Loans HFI 0.44% 0.34% 0.32% 0.25% 0.16%NPAs as a % of Loans HFI and Other Real Estate 0.51% 0.41% 0.39% 0.25% 0.17%NPAs as a % of Total Assets 0.29% 0.24% 0.23% 0.15% 0.10% (1)Recorded in other liabilities. (2)Annualized.
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Rate Average
Balance Interest Average
Rate ASSETS: Loans Held for Sale$24,716 $404 6.63%$24,261 $374 6.11%$25,276 $425 6.68%$22,668 475 8.40%$24,726 $490 8.04%Loans Held for Investment(1) 2,538,318 37,886 6.05 2,568,073 39,230 6.06 2,606,213 39,894 6.07 2,652,572 40,436 6.11 2,665,910 40,029 6.09 Investment Securities Taxable Investment Securities 1,117,505 9,042 3.26 1,004,420 7,756 3.07 992,260 7,175 2.88 1,006,514 6,666 2.65 981,485 5,802 2.38 Tax-Exempt Investment Securities(1) 1,620 17 4.25 1,620 17 4.30 1,620 18 4.44 1,467 17 4.50 845 9 4.32 Total Investment Securities 1,119,125 9,059 3.26 1,006,040 7,773 3.08 993,880 7,193 2.88 1,007,981 6,683 2.65 982,330 5,811 2.38 Federal Funds Sold and Interest Bearing Deposits 407,679 3,711 3.69 437,536 4,382 3.97 356,161 3,964 4.42 348,787 3,909 4.49 320,948 3,496 4.42 Total Earning Assets 4,089,838 $51,060 5.06% 4,035,910 $51,759 5.08% 3,981,530 $51,476 5.12% 4,032,008 $51,503 5.12% 3,993,914 $49,826 5.06% Cash and Due From Banks 63,079 67,291 65,085 65,761 73,467 Allowance for Credit Losses (31,545) (30,922) (30,342) (30,492) (30,008) Other Assets 297,532 294,757 301,678 302,984 297,660 Total Assets$4,418,904 $4,367,036 $4,317,951 $4,370,261 $4,335,033 LIABILITIES: Noninterest Bearing Deposits$1,282,988 $1,303,266 $1,314,560 $1,342,304 $1,317,425 NOW Accounts 1,302,894 $4,221 1.31% 1,235,961 $4,055 1.30% 1,198,124 $3,782 1.25% 1,225,697 $3,750 1.23% 1,249,955 $3,854 1.25%Money Market Accounts 403,340 1,752 1.76 415,577 1,977 1.89 416,656 2,090 1.99 431,774 2,340 2.17 420,059 2,187 2.11 Savings Accounts 509,351 132 0.10 501,080 157 0.12 503,189 159 0.13 507,950 174 0.14 507,676 176 0.14 Time Deposits 192,443 1,290 2.72 191,626 1,355 2.80 179,802 1,234 2.72 172,982 1,141 2.65 170,367 1,166 2.78 Total Interest Bearing Deposits 2,408,028 7,395 1.25 2,344,244 7,544 1.28 2,297,771 7,265 1.25 2,338,403 7,405 1.27 2,348,057 7,383 1.28 Total Deposits 3,691,016 7,395 0.81 3,647,510 7,544 0.82 3,612,331 7,265 0.80 3,680,707 7,405 0.81 3,665,482 7,383 0.82 Repurchase Agreements 15,789 73 1.88 20,690 134 2.57 21,966 158 2.86 22,557 156 2.78 29,821 164 2.23 Other Short-Term Borrowings 27,836 327 4.76 20,954 217 4.09 12,753 58 1.82 10,503 179 6.82 7,437 117 6.39 Subordinated Notes Payable 41,620 398 3.83 42,582 451 4.15 42,582 383 3.52 51,981 530 4.03 52,887 560 4.23 Other Long-Term Borrowings 680 10 5.68 680 9 5.55 681 10 5.55 792 5 2.41 794 11 5.68 Total Interest Bearing Liabilities 2,493,953 $8,203 1.33% 2,429,150 $8,355 1.36% 2,375,753 $7,874 1.32% 2,424,236 $8,275 1.37% 2,438,996 $8,235 1.37% Other Liabilities 74,300 78,520 85,422 76,138 65,211 Total Liabilities 3,851,241 3,810,936 3,775,735 3,842,678 3,821,632 SHAREOWNERS' EQUITY: 567,663 556,100 542,216 527,583 513,401 Total Liabilities, Temporary Equity and Shareowners' Equity$4,418,904 $4,367,036 $4,317,951 $4,370,261 $4,335,033 Interest Rate Spread $42,857 3.72% $43,404 3.72% $43,602 3.81% $43,228 3.75% $41,591 3.69% Interest Income and Rate Earned(1) 51,060 5.06 51,759 5.08 51,476 5.12 51,503 5.12 49,826 5.06 Interest Expense and Rate Paid(2) 8,203 0.81 8,355 0.82 7,874 0.78 8,275 0.82 8,235 0.84 Net Interest Margin $42,857 4.24% $43,404 4.26% $43,602 4.34% $43,228 4.30% $41,591 4.22% (1)Interest and average rates are calculated on a tax-equivalent basis using a 21% Federal tax rate. (2)Ratecalculated based on average earning assets.
For Information Contact:
Jep Larkin
Executive Vice President and Chief Financial Officer
850.402. 8450