EX-99 2 exhibit99_1earnings.txt Exhibit 99.1 Press release, dated April 26, 2005, announcing the Company's financial results for the first quarter of 2005. Capital City Bank Group [CCBG LOGO] For Information Contact: Corporate Headquarters J. Kimbrough Davis 217 North Monroe Street Executive Vice President Tallahassee, FL 32301 Chief Financial Officer (850) 671-0431 NEWS RELEASE For Immediate Release: April 26, 2005 CAPITAL CITY BANK GROUP, INC. REPORTS FIRST QUARTER EARNINGS OF $0.37 PER DILUTED SHARE, UP 26.1% FROM 2004 ----------------------------------------------------------------------------- HIGHLIGHTS * Quarterly earnings totaled $6.4 million, or $0.45 per share, an increase of 31.6% and 21.6%, respectively, over the first quarter of 2004. Results include the impact of the acquisitions of Quincy State Bank on March 19, 2004, and Farmers and Merchants Bank on October 15, 2004. * Strong growth in operating revenues reflective of 26.0% growth in net interest income and 11.9% increase in noninterest income. * Improvement in net interest margin as reflected by a 4 basis point improvement over the first quarter of 2004 and 17 basis point improvement over the fourth quarter of 2004 - net interest margin of 4.92% continues to significantly exceed peer group. * Lower loan loss provision due to continued strong credit quality as reflected by a nonperforming asset ratio of .31% and an annualized net charge-off ratio of .09%. * Expansion continues with the acquisition of First Alachua Banking Corporation ($230.0 million in assets), which is expected to close in May 2005. ------------------------------------------------------------------------------------------ EARNINGS HIGHLIGHTS Three Months Ended --------------------------------------- March 31, December 31, March 31, (Dollars in thousands, except per share data) 2005 2004 2004 ------------------------------------------------------------------------------------------ EARNINGS Net Income $ 6,377 7,262 4,847 Diluted Earnings Per Common Share 0.45 0.51 0.37 --------------------------------------------------------------------------------------- PERFORMANCE Return on Average Equity 9.91% 11.61 9.45 Return on Average Assets 1.12 1.24 1.06 Net Interest Margin 4.92 4.75 4.88 Noninterest Income as % of Operating Revenue 31.06 32.91 33.64 Efficiency Ratio 67.06 63.85 68.06 --------------------------------------------------------------------------------------- CAPITAL ADEQUACY Tier 1 Capital Ratio 11.52% 11.44 11.09 Total Capital Ratio 12.39 12.33 12.01 Leverage Ratio 9.03 8.79 8.38 Equity to Assets 11.07 10.86 10.57 --------------------------------------------------------------------------------------- 1 ------------------------------------------------------------------------------------------ EARNINGS HIGHLIGHTS Three Months Ended --------------------------------------- March 31, December 31, March 31, (Dollars in thousands, except per share data) 2005 2004 2004 ------------------------------------------------------------------------------------------ ASSET QUALITY Allowance as % of Non-Performing Loans 302.13% 345.18 717.20 Allowance as a % of Loans 0.87 0.88 0.94 Net Charge-offs as % of Average Loans 0.09 0.22 0.29 Nonperforming Assets as % of Loans and ORE 0.31 0.29 0.20 --------------------------------------------------------------------------------------- STOCK PERFORMANCE High $ 42.00 45.98 45.55 Low 36.63 37.71 39.05 Close $ 40.51 41.80 41.25 Average Daily Trading Volume 16,820 11,940 8,328 ---------------------------------------------------------------------------------------
Capital City Bank Group, Inc. (NASDAQ: CCBG) reported earnings for the first quarter totaling $6.4 million, or $0.45 per diluted share. This compares to $4.8 million, or $0.37 per diluted share in the first quarter of 2004, an increase of 31.6% and 21.6%, respectively. Results include the impact of the acquisitions of Quincy State Bank on March 19, 2004, and Farmers and Merchants Bank on October 15, 2004. The Return on Average Assets was 1.12% and the Return on Average Equity was 9.91%, compared to 1.06% and 9.45%, respectively, for the comparable period in 2004. The increase in earnings was primarily attributable to an increase in operating revenue of $6.2 million, or 21.3%, and a $551,000, or 57.3%, decrease in the loan loss provision, partially offset by an increase in noninterest expense of $4.2 million, or 19.9%. The increase in operating revenues is reflective of a 26.0% increase in net interest income and an 11.9% increase in noninterest income. The increase in net interest income is attributable to loan growth and an improving net interest margin. The lower loan loss provision is reflective of continued strong credit quality. Higher expense for compensation, occupancy, and advertising drove the increase in noninterest expense. William G. Smith, Jr., Chairman, President and CEO, stated, "The Company turned in a solid performance and is gaining momentum as we head into the second quarter. Our margin is responding well to rising rates, evidenced by a 17 basis point improvement over the fourth quarter of 2004. Loan growth picked up during the latter half of the first quarter and credit quality remains at historically strong levels. Expansion into the Alachua/Gainesville market adds tremendous growth potential to our franchise, and we look forward to associates of First National Bank of Alachua joining the Capital City team." Net interest income in the first quarter increased $5.1 million, or 26.0% compared to the first quarter of 2004, due to earning asset growth reflective of the two acquisitions in 2004, strong loan growth throughout 2004 in existing markets, and a slight improvement in the net interest margin. The net interest margin increased 4 basis points from the first quarter of 2004 to a level of 4.92%, attributable to a 43 basis point improvement in earning asset yields partially offset by higher cost of funds of 39 basis points. Compared to the fourth quarter of 2004, taxable equivalent net interest income increased $216,000, or .09%, and the margin improved by 17 basis points. This was a result of higher asset yields and growth in the loan portfolio, partially offset by a slightly higher cost of funds. Both earning asset yields and funding costs increased during the first quarter as a result of the continued rate hikes by the Federal Reserve. 2 Provision for loan losses of $410,000 for the quarter was lower than the first quarter of 2004 due to a lower level of net charge-offs. Net charge- offs totaled $407,000, or .09% of average loans for the quarter compared to $977,000, or .29% for the first quarter of 2004. At quarter-end the allowance for loan losses was .87% of outstanding loans and provided coverage of 302% of nonperforming loans. Noninterest income increased $1.2 million, or 11.9%, from the first quarter of 2004 primarily due to higher deposit service charge fees, asset management fees, and interchange fees. The increase in deposit service charge fees is due to the growth in deposit accounts reflective of the two acquisitions, a fee structure change implemented in mid 2004, and an increase in NSF/OD fees due to processing improvements implemented in the fourth quarter. The improvement in asset management fees is due to an increase in trust assets under management reflective of assets acquired from Synovus Trust Company late in the first quarter of 2004 and growth in new business within existing markets. The increase in interchange fees is reflective of growth in merchant card processing volume. Noninterest income was 1.9% of average assets and represented 31.1% of operating revenue. This compares to 2.2% and 33.6%, respectively, for the first quarter of 2004. Noninterest expense grew by $4.2 million, or 19.9%, compared to the first quarter of 2004. Higher expense for compensation, occupancy, and advertising were the primary reasons for the increase. The increase in compensation was driven by higher associate salaries, reflecting the integration of associates from the two acquisitions in 2004 and higher performance based compensation. The increase in occupancy was driven by higher expense for depreciation, maintenance/repair, utilities, and property taxes, primarily attributable to the increase in the number of banking offices. The increase in advertising expense is reflective of marketing expenses to support the new free checking product introduced in the first quarter of 2005. Average earning assets for the quarter increased $412.6 million, or 25.2%, over the comparable quarter in 2004. The increase in earning assets is reflective of increases in average investment securities ($21.6 million) and average loans ($470.0 million) primarily associated with the two acquisitions integrated in 2004. Strong loan growth in existing markets throughout 2004 also contributed to the increase. Partially offsetting the increase in average loans and investment securities was a decrease in overnight funds sold of $79.0 million, or 78.0%. Nonperforming assets of $5.6 million increased from the first quarter of 2004 by $2.7 million and represented .31% of total loans and other real estate at quarter-end. This compares to .20% and .29%, respectively, for the first and fourth quarters of 2004. The increase in the level of nonperforming assets is due to a higher level of non-accrual loans primarily reflective of one large commercial real estate loan that is in the process of foreclosure. Management expects no significant loss upon the disposition of this asset. Average total deposits increased $390.2 million, or 26.8%, from the first quarter of 2004 driven by a $258.7 million increase in nonmaturity deposits and a $131.6 million increase in certificates of deposits. These increases are primarily reflective of the two acquisitions integrated in 2004. The Company ended the first quarter with approximately $1.0 million in average net overnight funds purchased as compared to $84.3 million net overnight funds sold in the first quarter of 2004. The significant decline is primarily reflective of cash used to fund acquisitions, loan growth, and a slight deposit run-off associated with the two acquisitions closed in 2004. 3 ABOUT CAPITAL CITY BANK Capital City Bank Group, Inc. is a $2.35 billion financial services company headquartered in Tallahassee, Florida, providing traditional deposit and credit services, asset management, trust, mortgage banking, bankcards, data processing, and securities brokerage services. Founded in 1895, Capital City Bank has 60 banking offices, five mortgage lending offices, 74 ATMs, and 11 Bank 'N Shop locations in Florida, Georgia and Alabama. For more information about Capital City Bank Group, Inc. visit us on the Web at http://www.ccbg.com. FORWARD-LOOKING STATEMENTS "Safe Harbor" Statement under the Private Securities Litigation Reform Act of 1995: The matters discussed in this press release, that are not historical facts, contain forward-looking information with respect to strategic initiatives. Such forward-looking statements are based on current plans and expectations, which are subject to a number of uncertainties and risks that have been described in Capital City Bank Group's annual report on Form 10-K for the fiscal year ended December 31, 2004, and the Company's other filings with the Securities and Exchange Commission. These uncertainties and risks could cause future results to differ materially from those anticipated by such statements. 4 CAPITAL CITY BANK GROUP, INC. CONSOLIDATED STATEMENT OF INCOME Unaudited ---------------------------------------------------------------------------------------------------------------- 2005 20034 --------- -------------------------------------------- First Fourth Third Second First (Dollars in thousands, except per share data) Quarter Quarter Quarter Quarter Quarter ---------------------------------------------------------------------------------------------------------------- INTEREST INCOME Interest and Fees on Loans $ 28,842 28,097 23,316 22,922 21,272 Interest on Investment Securities 1,473 1,485 1,197 1,227 1,176 Interest on Funds Sold 159 348 147 116 222 ---------------------------------------------------------------------------------------------------------------- Total Interest Income 30,474 29,930 24,660 24,265 22,670 ---------------------------------------------------------------------------------------------------------------- INTEREST EXPENSE Interest on Deposits 4,309 4,102 2,434 2,385 2,394 Interest on Short-term Borrowings 450 402 332 249 287 Interest on Subordinated Note Payable 441 294 - - - Interest on Long-term Borrowings 720 836 642 587 497 ---------------------------------------------------------------------------------------------------------------- Total Interest Expense 5,920 5,634 3,408 3,221 3,178 ---------------------------------------------------------------------------------------------------------------- Net Interest Income 24,554 24,296 21,252 21,044 19,492 Provision for Loan Losses 410 300 300 580 961 ---------------------------------------------------------------------------------------------------------------- Net Interest Income after Provision for Loan Losses 24,144 23,996 20,952 20,464 18,531 ================================================================================================================ NONINTEREST INCOME Service Charge Revenue 4,348 4,716 4,487 4,427 3,944 Data Processing Revenue 607 640 652 703 633 Fees for Trust Services 1,112 1,281 1,035 950 741 Retail Brokerage Fees 299 324 316 396 364 Investment Sec Gain (Losses) - 7 (13) 19 - Mortgage Banking Revenue 763 722 806 986 694 Merchant Fees 1,564 1,379 1,230 1,278 1,248 Interchange Fees 491 458 537 660 574 Gain on Sale of Credit Cards - 324 6,857 - - ATM/Debit Card Fees 538 549 494 482 481 Other 1,338 1,520 1,320 1,130 1,202 ---------------------------------------------------------------------------------------------------------------- Total Noninterest Income 11,060 11,920 17,721 11,031 9,881 ================================================================================================================ NONINTEREST EXPENSE Compensation 12,560 11,830 10,966 10,809 10,740 Premises 1,937 1,880 1,828 1,749 1,617 FF&E 2,112 2,179 2,174 1,977 2,063 Intangible Amortization 1,196 1,151 921 926 826 Other 7,462 7,877 5,744 6,140 5,829 ---------------------------------------------------------------------------------------------------------------- Total Noninterest Expense 25,267 24,917 21,633 21,601 21,075 ================================================================================================================ OPERATING PROFIT 9,937 10,999 17,040 9,894 7,337 Provision for Income Taxes 3,560 3,737 6,221 3,451 2,490 ---------------------------------------------------------------------------------------------------------------- NET INCOME $ 6,377 7,262 10,819 6,443 4,847 ================================================================================================================ PER SHARE DATA Basic Earnings $ 0.45 0.51 0.82 0.48 0.37 Diluted Earnings 0.45 0.51 0.82 0.48 0.37 Cash Dividends 0.190 0.190 0.180 0.180 0.180 AVERAGE SHARES Basic 14,160 13,955 13,283 13,274 13,262 Diluted 14,166 13,961 13,287 13,277 13,286 ================================================================================================================
5 CAPITAL CITY BANK GROUP, INC. CONSOLIDATED STATEMENT OF FINANCIAL CONDITION Unaudited ================================================================================================================ 2005 2004 ---------- -------------------------------------------- First Fourth Third Second First (Dollars in thousands) Quarter Quarter Quarter Quarter Quarter ---------------------------------------------------------------------------------------------------------------- ASSETS Cash and Due From Banks $ 92,868 87,039 90,458 97,154 93,427 Funds Sold 57,115 74,506 47,352 107,399 90,469 ---------------------------------------------------------------------------------------------------------------- Total Cash and Cash Equivalents 149,983 161,545 137,810 204,553 183,896 Investment Securities, Available-for-Sale 190,945 210,240 156,675 183,732 188,763 Loans, Net of Unearned Commercial & Industrial 196,632 206,474 187,862 187,530 185 237 Real Estate Construction 151,143 140,190 119,248 108,422 96,285 Real Estate Mortgage 639,637 655,426 473,874 466,437 449,677 Real Estate Residential 437,520 425,765 375,109 348,917 340,729 Real Estate Home Equity 151,464 150,061 145,408 133,729 119,496 Consumer 223,145 222,207 212,847 216,553 216,094 Credit Card 48 41 170 22,636 22,713 Other Loans 42,046 24,549 21,530 32,572 30,988 Overdrafts 2,168 4,112 4,602 4,701 4,585 ---------------------------------------------------------------------------------------------------------------- Total Loans, Net of Unearned 1,843,803 1,828,825 1,540,650 1,521,497 1,465,804 Allowance for Loan Losses (16,040) (16,037) (12,328) (13,657) (13,720) ---------------------------------------------------------------------------------------------------------------- Loans, Net 1,827,763 1,812,788 1,528,322 1,507,840 1,452,084 Premises and Equipment 60,443 58,963 56,281 56,263 56,394 Intangible Assets 79,139 80,305 39,720 40,608 41,512 Other Assets 40,819 40,172 32,985 33,834 34,604 ---------------------------------------------------------------------------------------------------------------- Total Other Assets 180,401 179,440 128,986 130,705 132,510 ---------------------------------------------------------------------------------------------------------------- Total Assets $2,349,092 2,364,013 1,951,793 2,026,830 1,957,253 ================================================================================================================ LIABILITIES Deposits: Noninterest Bearing Deposits $ 555,758 566,991 518,352 520,118 482,703 NOW Accounts 400,816 338,932 285,851 320,460 294,726 Money Market Accounts 250,433 270,095 209,262 214,815 222,298 Regular Savings Accounts 148,578 147,348 129,461 130,822 128,767 Certificates of Deposit 533,773 571,520 427,621 426,521 443,172 ---------------------------------------------------------------------------------------------------------------- Total Deposits 1,889,358 1,894,886 1,570,547 1,612,736 1,571,666 Short-Term Borrowings 78,593 96,014 76,216 127,012 112,343 Subordinated Note Payable 30,928 30,928 - - - Other Long-Term Borrowings 67,879 68,453 62,930 58,427 49,950 Other Liabilities 22,236 16,932 23,031 18,934 16,366 ---------------------------------------------------------------------------------------------------------------- Total Liabilities 2,088,994 2,107,213 1,732,724 1,817,109 1,750,325 ---------------------------------------------------------------------------------------------------------------- SHAREOWNERS' EQUITY Common Stock 142 142 133 133 132 Additional Paid-in-Capital 52,772 52,363 18,411 17,922 17,788 Retained Earnings 208,334 204,648 200,073 191,645 187,592 Accumulated Other Comprehensive Income (1,150) (353) 452 21 1,416 ---------------------------------------------------------------------------------------------------------------- Total Shareowners' Equity 260,098 256,800 219,069 209,721 206,928 ---------------------------------------------------------------------------------------------------------------- Total Liabilities and Shareowners' Equity $2,349,092 2,364,013 1,951,793 2,026,830 1,957,253 ================================================================================================================ OTHER BALANCE SHEET DATA Earning Assets $2,091,863 2,113,571 1,744,677 1,812,628 1,745,036 Intangible Assets Goodwill 54,371 54,341 19,657 19,656 19,633 Deposit Base 22,689 23,778 18,897 19,786 20,683 Other 2,079 2,189 1,166 1,166 1,196 Interest Bearing Liabilities 1,511,000 1,523,290 1,191,341 1,278,057 1,251,256 ---------------------------------------------------------------------------------------------------------------- Book Value Per Diluted Share $ 18.36 18.13 16.48 15.80 15.54 Tangible Book Value Per Diluted Share 12.78 12.46 13.50 12.74 12.43 ---------------------------------------------------------------------------------------------------------------- Actual Basic Shares Outstanding 14,162 14,155 13,285 13,275 13,273 Actual Diluted Shares Outstanding 14,164 14,161 13,289 13,277 13,312 ================================================================================================================
CAPITAL CITY BANK GROUP, INC. ALLOWANCE FOR LOAN LOSSES AND NONPERFORMING ASSETS Unaudited ================================================================================================================ 2005 2004 ---------- -------------------------------------------- First Fourth Third Second First (Dollars in thousands) Quarter Quarter Quarter Quarter Quarter ---------------------------------------------------------------------------------------------------------------- ALLOWANCE FOR LOAN LOSSES Balance at Beginning of Period $ 16,037 12,328 13,657 13,720 12,429 Acquired Reserves - 4,400 - 6 1,307 Reserve Reversal - Credit Card - - (800) - - Provision for Loan Losses 410 300 300 580 961 Net Charge-offs 407 991 829 649 977 ---------------------------------------------------------------------------------------------------------------- Balance at End of Period $ 16,040 16,037 12,328 13,657 13,720 ================================================================================================================ As a % of Loans 0.87% 0.88 0.80 0.90 0.94 As a % of Nonperforming Loans 302.13 345.18 261.91 452.82 717.20 As a % of Nonperforming Assets 284.25 304.25 220.10 334.73 459.63 ================================================================================================================ CHARGE-OFFS Commercial, Financial and Agricultural $ 88 234 187 286 167 Real Estate - Construction - - - - - Real Estate - Mortgage 4 9 - - 39 Real Estate - Residential 25 78 19 11 83 Consumer 718 1,015 998 885 1,047 ---------------------------------------------------------------------------------------------------------------- Total Charge-offs $ 835 1,336 1,204 1,182 1,336 ================================================================================================================ RECOVERIES Commercial, Financial and Agricultural $ 9 34 10 24 12 Real Estate - Construction - - - - - Real Estate - Mortgage - - 14 - - Real Estate - Residential 2 12 1 176 - Consumer 417 299 350 333 347 ---------------------------------------------------------------------------------------------------------------- Total Recoveries $ 428 345 375 533 359 ================================================================================================================ NET CHARGE-OFFS $ 407 991 829 649 977 ================================================================================================================ Net charge-offs as a % of Average Loans 0.09% 0.22 0.22 0.18 0.29 ================================================================================================================ RISK ELEMENT ASSETS Nonaccruing Loans $ 5,309 4,646 4,707 3,016 1,913 Restructured - - - - - ---------------------------------------------------------------------------------------------------------------- Total Nonperforming Loans 5,309 4,646 4,707 3,016 1,913 Other Real Estate 334 625 894 1,064 1,072 ---------------------------------------------------------------------------------------------------------------- Total Nonperforming Assets $ 5,643 5,271 5,601 4,080 2,985 ================================================================================================================ Past Due Loans 90 Days or More $ 298 605 196 330 1,351 ================================================================================================================ Nonperforming Loans as a % of Loans 0.29% 0.25 0.31 0.20 0.13 Nonperforming Assets as a % of Loans and Other Real Estate 0.31 0.29 0.36 0.27 0.20 Nonperforming Assets as a % of Capital 2.04 1.93 2.42 1.83 1.35 ================================================================================================================ Annualized Capital includes allowance for loan losses.
7 CAPITAL CITY BANK GROUP, INC. AVERAGE BALANCE AND INTEREST RATES Unaudited ================================================================================================================================ First Quarter of 2005 Fourth Quarter 2004 Third Quarter 2004 ------------------------- ------------------------- ------------------------ Average Average Average Average Average Average (Dollars in thousands) Balance Interest Rate Balance Interest Rate Balance Interest Rate ------------------------------------------------------------------------ ------------------------- ------------------------ ASSETS: Loans, Net of Unearned Interest $1,827,327 $28,920 6.42% 1,779,736 28,180 6.30 1,524,401 23,345 6.09 Investment Securities Taxable Investment Securities 153,543 1,090 2.85 152,049 1,029 2.71 118,903 729 2.45 Tax-Exempt Investment Securities 43,928 586 5.33 51,688 696 5.38 51,768 716 5.53 -------------------------------------------------------------------------------------------------------------------------------- Total Investment Securities 197,471 1,676 3.40 203,737 1,725 3.39 170,671 1,445 3.38 Funds Sold 22,251 159 2.85 82,638 348 1.65 39,636 147 1.45 -------------------------------------------------------------------------------------------------------------------------------- Total Earning Assets 2,047,049 $30,755 6.09% 2,066,111 30,253 5.83 1,734,708 24,937 5.72 ============== ============ ============ Cash and Due From Banks 97,322 101,959 90,010 Allowance For Loan Losses (16,167) (15,813) (13,029) Other Assets 178,603 170,613 129,683 -------------------------------------------------------- --------- --------- Total Assets $2,306,807 2,322,870 1,941,372 ======================================================== ========= ========= LIABILITIES: Interest Bearing Deposits NOW Accounts $ 359,151 447 0.50% 333,839 335 0.40 280,630 153 0.22 Money Market Accounts 251,849 625 1.01 267,710 467 0.69 212,426 245 0.46 Savings Accounts 147,676 75 0.21 144,967 72 0.20 130,330 32 0.10 Time Deposits 552,069 3,162 2.32 553,435 3,228 2.32 429,702 2,004 1.86 -------------------------------------------------------------------------------------------------------------------------------- Total Interest Bearing Deposits 1,310,745 4,309 1.33 1,299,951 4,102 1.25 1,053,088 2,434 0.92 Short-Term Borrowings 79,582 450 2.29 92,193 402 1.74 96,146 332 1.37 Subordinated Note Payable 30,928 441 5.79 20,507 294 5.71 0 0 0.00 Other Long-Term Borrowings 68,200 720 4.28 77,041 836 4.32 59,837 642 4.27 -------------------------------------------------------------------------------------------------------------------------------- Total Interest Bearing Liabilities 1,489,455 $ 5,920 1.61% 1,489,692 5,634 1.50 1,209,071 3,408 1.12 ============== ============ ============ Noninterest Bearing Deposits 536,633 553,637 492,136 Other Liabilities 19,773 30,768 22,892 -------------------------------------------------------- --------- --------- Total Liabilities 2,045,861 2,074,097 1,724,099 SHAREOWNERS' EQUITY: $ 260,946 248,773 217,273 -------------------------------------------------------- --------- --------- Total Liabilities and Shareowners' Equity $2,306,807 2,322,870 1,941,372 ======================================================== ========= ========= Interest Rate Spread $24,835 4.48% 24,619 4.33 21,529 4.60 ======================================================================== ============ ============ Interest Income and Rate Earned $30,755 6.09 30,253 5.83 24,937 5.72 Interest Expense and Rate Paid 5,920 1.17 5,634 1.08 3,408 0.78 ------------------------------------------------------------------------ ------------ ------------ Net Interest Margin $24,835 4.92% 24,619 4.75 21.529 4.94 ======================================================================== ============ ============ Interest and average rates are calculated on a tax-equivalent basis using the 35% Federal tax rate. Rate calculated based on average earning assets. Rate calculated based on average interest bearing liabilities.
8 CAPITAL CITY BANK GROUP, INC. AVERAGE BALANCE AND INTEREST RATES Unaudited =================================================================================================== Second Quarter of 2004 First Quarter 2004 ------------------------- ------------------------ Average Average Average Average (Dollars in thousands) Balance Interest Rate Balance Interest Rate -------------------------------------------- ------------------------- ------------------------ ASSETS: Loans, Net of Unearned Interest $1,491,142 $22,961 6.19% 1,357,206 21,310 6.32 Investment Securities Taxable Investment Securities 134,634 745 2.21 121,702 635 2.09 Tax-Exempt Investment Securities 50,191 732 5.83 54,274 821 6.06 --------------------------------------------------------------------------------------------------- Total Investment Securities 184,825 1,477 3.20 175,976 1,456 3.31 Funds Sold 45,688 116 1.01 101,286 222 0.87 --------------------------------------------------------------------------------------------------- Total Earning Assets 1,721,655 $24,554 5.74% 1,634,468 22,988 5.66 ============== ============ Cash and Due From Banks 89,921 90,327 Allowance For Loan Losses (13,804) (12,725) Other Assets 131,713 118,426 -------------------------------------------------------- --------- Total Assets $1,929,485 1,830,496 ======================================================== ========= LIABILITIES: Interest Bearing Deposits NOW Accounts $ 283,297 121 0.17% 271,878 124 0.18 Money Market Accounts 215,746 239 0.44 215,078 239 0.45 Savings Accounts 129,684 32 0.10 115,985 28 0.10 Time Deposits 433,514 1,993 1.85 420,501 2,003 1.92 --------------------------------------------------------------------------------------------------- Total Interest Bearing Deposits 1,062,241 2,385 0.90 1,023,442 2,394 0.94 Short-Term Borrowings 109,723 249 0.91 104,406 287 1.11 Subordinated Note Payable 0 0 0.00 0 0 0.00 Other Long-Term Borrowings 53,752 587 4.39 47,023 497 4.25 --------------------------------------------------------------------------------------------------- Total Interest Bearing Liabilities 1,225,716 $ 3,221 1.06% 1,174,871 3,178 1.09 ============== ============ Noninterest Bearing Deposits 476,389 433,718 Other Liabilities 17,169 15,512 -------------------------------------------------------- --------- Total Liabilities 1,719,274 1,624,101 SHAREOWNERS' EQUITY: $ 210,211 206,395 -------------------------------------------------------- --------- Total Liabilities and Shareowners' Equity $1,929,485 1,830,496 ======================================================== ========= Interest Rate Spread $21,333 4.68% 19,810 4.57 ======================================================================== ============ Interest Income and Rate Earned $24,554 5.74 22,988 5.66 Interest Expense and Rate Paid 3,221 0.75 3,178 0.78 ------------------------------------------------------------------------ ------------ Net Interest Margin $21,333 4.99% 19,810 4.88 ======================================================================== ============ Interest and average rates are calculated on a tax-equivalent basis using the 35% Federal tax rate. Rate calculated based on average earning assets. Rate calculated based on average interest bearing liabilities.
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