OREANDA-NEWS. Capital City Bank Group, Inc. (Nasdaq:CCBG) today reported net income of $3.9 million, or $0.22 per diluted share for the second quarter of 2016 compared to net income of $1.6 million, or $0.10 per diluted share for the first quarter of 2016, and $3.8 million, or $0.22 per diluted share, for the second quarter of 2015.  For the first six months of 2016, net income totaled $5.6 million, or $0.32 per diluted share, compared to net income of $4.8 million, or $0.28 per diluted share for the same period in 2015.       

HIGHLIGHTS

  • Continued broad based loan growth of 1.6% sequentially and 4.0% over prior year
  • Continued growth in net interest income of 0.9% sequentially and 2.9% year to date
  • Significant reduction in loan loss provision reflective of strong loan recoveries
  • Strong reduction in NPAs and classified assets – down sequentially by 14% and 11%, respectively
  • $10 million trust preferred securities (“TRUPs”) repurchased at a discount added $2.5 million pre-tax ($0.09 per share) to 2nd quarter earnings
  • Repurchased 432,000 shares of common stock during second quarter of 2016

“Our second quarter performance continued to show meaningful progress year over year,” said William G. Smith, Jr., Chairman, President and CEO.  “A significant reduction in nonperforming assets, high level of loan loss recoveries and gain on the repurchase of $10 million in TRUPs all helped to headline the quarter.  Despite a challenging environment, our strategies continue to produce positive results.  Average loans grew at an annual pace of over 6%, and we remain dedicated to reducing our structural expenses and enhancing existing revenues while identifying new business opportunities.  If done properly and prudently, it can take time for these strategies to produce the desired outcome, but we are making progress and remain steadfast in our decision to value long-term profitability over short-term gains.”

Compared to the first quarter of 2016, performance reflects higher net interest income of $0.2 million, a $2.5 million increase in noninterest income, lower noninterest expense of $0.2 million, and a $0.6 million reduction in the loan loss provision, partially offset by a $1.2 million increase in income taxes.

Compared to the second quarter of 2015, the increase in earnings reflects higher net interest income of $0.4 million, a $0.4 million increase in noninterest income, and a $0.5 million reduction in the loan loss provision, partially offset by a $0.3 million increase in noninterest expense and $0.9 million increase in income taxes.

The increase in earnings for the first six months of 2016 versus the comparable period in 2015 was attributable to higher net interest income of $1.1 million, a $0.3 million increase in noninterest income, lower noninterest expense of $0.2 million, and a $0.3 million reduction in the loan loss provision, partially offset by higher income taxes of $1.1 million.

The Return on Average Assets was 0.57% and the Return on Average Equity was 5.65% for the second quarter of 2016.  These metrics were 0.24% and 2.39% for the first quarter of 2016, respectively, and 0.58% and 5.62% for the second quarter of 2015, respectively.  For the first six months of 2016, the Return on Average Assets was 0.41% and the Return on Average Equity was 4.03% compared to 0.37% and 3.54%, respectively, for the first half of 2015.

Discussion of Operating Results

Tax equivalent net interest income for the second quarter of 2016 was $19.6 million compared to $19.4 million for the first quarter of 2016 and $19.1 million for the second quarter of 2015.  The increase in tax equivalent net interest income compared to the first quarter of 2016 reflects a positive shift in earning asset mix due to growth in the loan and investment portfolios, partially offset by a decline in overnight funds.  The increase in tax equivalent net interest income compared to the second quarter of 2015 reflects growth in the investment portfolio and a higher rate paid on overnight funds, partially offset by a decline in loan fees.  For the six months ended June 30, 2016, tax equivalent net interest income totaled $39.0 million compared to $37.7 million for the comparable period in 2015.  The year over year increase was driven by one additional calendar day, and growth in the loan and investment portfolios.

Although the low interest rate environment continues to put downward pressure on our net interest income, we have been successful in increasing our net interest income quarter-over-quarter.  Additionally, aggressive lending competition in all markets has impacted the pricing for loans. Low rates and competition, collectively, continue to adversely impact our loan yields.  Various loan strategies, which align with our overall risk appetite, continue to be reviewed and implemented to enhance our performance.

Our net interest margin for the second quarter of 2016 was 3.22%, an increase of two basis points over the first quarter of 2016 and a decrease of seven basis points from the second quarter of 2015.  The increase in the margin compared to the first quarter of 2016 was primarily attributable to growth in our loan and investment portfolios.  The decrease in the margin compared to the second quarter of 2015 was primarily attributable to lower loan yields.  For the six months ended June 30, 2016, the net interest margin declined by seven basis points to 3.21% compared to the same period of 2015 for reasons mentioned above. 

The provision for loan losses for the second quarter of 2016 was negative $0.1 million reflecting a higher level of loan recoveries as well as continued improvement in credit quality.  This compares to a $0.5 million provision expense for the first quarter of 2016 and $0.4 million provision expense for the second quarter of 2015.  For the first half of 2016, the loan loss provision totaled $0.4 million compared to $0.7 million for the same period of 2015.  The decrease in the year-to-date provision reflects continued favorable problem loan migration and improvement in key credit metrics, partially offset by growth in the loan portfolio.  We realized net loan recoveries of $0.2 million (consisting of recoveries of $1.3 million, less gross charge-offs of $1.1 million) for the second quarter of 2016.  This compares to net charge-offs of $0.8 million, or 0.21% (annualized) of average loans for the first quarter of 2016 and $1.2 million, or 0.33% (annualized), for the second quarter of 2015.  For the first half of 2016, net charge-offs totaled $0.6 million, or 0.08% (annualized) of average loans compared to $3.0 million, or 0.41% (annualized), for the same period of 2015.  At quarter-end, the allowance for loan losses of $13.7 million was 0.89% of outstanding loans (net of overdrafts) and provided coverage of 167% of nonperforming loans compared to 0.90% and 150%, respectively, at March 31, 2016 and 0.93% and 135%, respectively, at December 31, 2015.

Noninterest income for the second quarter of 2016 totaled $15.2 million, an increase of $2.5 million, or 20.0%, over the first quarter of 2016 attributable to a $2.5 million gain from the repurchase of our TRUPs.  This transaction is further detailed in our Current Report on Form 8-K filed with the SEC on April 18, 2016.  Compared to the second quarter of 2015, noninterest income increased $0.4 million, or 2.8%, primarily attributable to higher other income of $0.8 million that was partially offset by lower deposit fees of $0.4 million.  The increase in other income reflects the $2.5 million gain from the repurchase of TRUPs partially offset by lower bank owned life insurance (“BOLI”) income of $1.7 million.  For the first half of 2016, noninterest income totaled $27.9 million, a $0.3 million, or 0.9%, increase over the same period of 2015, primarily attributable to higher other income of $0.9 million and mortgage banking fees of $0.1 million, partially offset by lower deposit fees of $0.5 million and wealth management fees of $0.3 million.  The variance in other income was attributable to the same factors noted above for the second quarter.  Continued strong residential home sales activity in our markets drove the improvement in mortgage banking fees.  The reduction in deposit fees reflects lower overdraft service fees attributable to a reduction in accounts using this service as well as lower utilization by existing users.  The reduction in wealth management fees generally reflects lower trading volume by our retail brokerage clients.

Noninterest expense for the second quarter of 2016 totaled $28.7 million, a decrease of $0.2 million, or 0.8%, from the first quarter of 2016 primarily attributable to lower other real estate owned (“OREO”) expense of $0.4 million reflective of lower property valuation adjustments and carrying costs. Compared to the second quarter of 2015, noninterest expense increased by $0.3 million, or 0.9%, due to higher occupancy costs, primarily attributable to higher maintenance costs for building and furniture/equipment and to a lesser extent higher depreciation expense from technology investments in our banking offices.  For the first six months of 2016, noninterest expense totaled $57.6 million, a decrease of $0.2 million, or 0.3%, from the same period of 2015 attributable to lower compensation expense of $0.6 million that was partially offset by higher occupancy expense of $0.4 million.  A higher level of deferred loan cost (which reduces salary expense), partially offset by higher pension plan expense drove the reduction in compensation.  The variance in occupancy expense was attributable to the same aforementioned factors noted above for the second quarter.

We realized income tax expense of $2.1 million (34% effective rate) for the second quarter of 2016 compared to $0.9 million (34% effective rate) for the first quarter of 2016 and $1.2 million (23% effective rate) for the second quarter of 2015.  For the first six months of 2016, income tax expense totaled $2.9 million (34% effective rate) compared to $1.8 million (27% effective rate) for the comparable period of 2015.  The receipt of $1.7 million in BOLI proceeds in the second quarter of 2015 was tax-free, therefore income tax expense for the three and six-months of 2015 was favorably impacted.

Discussion of Financial Condition

Average earning assets were $2.448 billion for the second quarter of 2016, an increase of $7.1 million, or 0.3%, over the first quarter of 2016, and an increase of $94.0 million, or 4.0%, over the fourth quarter of 2015.  The change in earning assets over the first quarter of 2016 reflects growth in both the loan and investment portfolios, which was funded by a reduction in our funds sold position and growth in nonmaturity deposits, primarily noninterest bearing.  The increase compared to the fourth quarter of 2015 reflects growth in the loan and investment portfolios, funded primarily by increases in noninterest bearing, NOW, and savings accounts. 

We maintained an average net overnight funds (deposits with banks plus fed funds sold less fed funds purchased) sold position of $254.6 million during the second quarter of 2016 compared to an average net overnight funds sold position of $286.2 million in the first quarter of 2016 and $222.8 million in the fourth quarter of 2015. The decrease in net overnight funds compared to the first quarter of 2016 reflects an increase in both the investment and loan portfolios. The decline in interest bearing liabilities was nearly offset by the increase in noninterest bearing deposits. The increase in net overnight funds compared to the fourth quarter of 2015 primarily reflects higher levels of all deposit products other than money market accounts and certificates of deposit, partially offset by growth in both the investment and loan portfolios.

Average loans increased $24.3 million, or 1.6% when compared to the first quarter of 2016, and have grown $39.3 million, or 2.6% when compared to the fourth quarter of 2015. The increase compared to the prior quarter reflects growth primarily in institutional, commercial, and consumer loans. Growth over the fourth quarter of 2015 was experienced in all loan products, with the exception of commercial mortgages. 

Without compromising our credit standards or taking on inordinate interest rate risk, we continue to make minor modifications on some of our lending programs to try to mitigate the impact that consumer and business deleveraging is having on our portfolio.  These programs, coupled with economic improvements in our anchor markets, have helped to increase overall production. Nonperforming assets (nonaccrual loans and OREO) totaled $22.8 million at the end of the second quarter of 2016, a decrease of $3.7 million, or 14%, from the first quarter of 2016 and $6.8 million, or 23%, from the fourth quarter of 2015.  Nonaccrual loans totaled $8.2 million at the end of the second quarter of 2016, a decrease of $0.9 million from the first quarter of 2016 and $2.1 million from the fourth quarter of 2015.  Nonaccrual loan additions totaled $2.5 million in the second quarter of 2016 and $6.3 million for the first six months of 2016, which compares to $10.3 million for the same six month period of 2015.  The balance of OREO totaled $14.6 million at the end of the second quarter of 2016, a decrease of $2.8 million and $4.7 million, respectively, from the first quarter of 2016 and fourth quarter of 2015.  For the second quarter of 2016, we added properties totaling $1.2 million, sold properties totaling $3.3 million, and recorded valuation adjustments totaling $0.7 million.  For the first six months of 2016, we added properties totaling $2.4 million, sold properties totaling $5.6 million, and recorded valuation adjustments totaling $1.5 million.  Nonperforming assets represented 0.83% of total assets at June 30, 2016 compared to 0.95% at March 31, 2016 and 1.06% at December 31, 2015.

Average total deposits were $2.277 billion for the second quarter of 2016, an increase of $18.0 million, or 0.8%, over the first quarter of 2016, and an increase of $101.8 million, or 4.7% over the fourth quarter of 2015. The increase in deposits when compared to the first quarter of 2016 reflects growth in all deposit products except public NOW deposits and certificates of deposit.  Compared to the fourth quarter of 2015, growth was experienced in all product types except money market accounts and certificates of deposit.  The seasonal inflows of public funds most likely peaked in the first quarter of 2016, and are expected to decline into the fourth quarter of 2016.

Deposit levels remain strong, as the seasonal decline in public NOW accounts was more than offset by increases in all other nonmaturity deposits during the quarter.  Average core deposits continue to experience growth in this low rate environment.  Competitive rates continue to be monitored, as a prudent pricing discipline remains the key to managing our mix of deposits.

Compared to the first quarter of 2016, average borrowings decreased $22.9 million due to a decline in repurchase agreements and the retirement of $10 million in subordinated debt associated with the TRUPs repurchase.  Compared to the fourth quarter of 2015, average borrowings decreased by $24.9 million due to the reasons stated above.

Equity capital was $274.8 million as of June 30, 2016, compared to $276.8 million as of March 31, 2016 and $274.4 million as of December 31, 2015.  Our leverage ratio was 9.88%, 10.34%, and 10.65%, respectively, for these periods.  Further, as of June 30, 2016, our risk-adjusted capital ratio was 16.44% compared to 17.20% and 17.25% at March 31, 2016 and December 31, 2015, respectively.  Our common equity tier 1 ratio was 12.65% as of June 30, 2016, compared to 12.82% as of March 31, 2016 and 12.84% as of December 31, 2015.  All of our capital ratios significantly exceed the threshold to be designated as “well-capitalized” under the Basel III capital standards.  The reduction in our regulatory capital ratios in the second quarter of 2016 reflects the repurchase of common stock (~ 38 basis point impact) and the repurchase of TRUPs (~ 50 basis point impact).  During the second quarter of 2016 we repurchased approximately 432,000 shares of our common stock at an average price of $14.50 per share.

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 $2.8 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, data processing and securities brokerage services.  Our bank subsidiary, Capital City Bank, was founded in 1895 and now has 61 banking offices and 71 ATMs in Florida, Georgia and Alabama. 

FORWARD-LOOKING STATEMENTS

Forward-looking statements in this Press Release are based on current plans and expectations that are subject to uncertainties and risks, which could cause the Company’s future results to differ materially.  The following factors, among others, could cause the Company’s actual results to differ: the accuracy of the Company’s financial statement estimates and assumptions; legislative or regulatory changes, including the Dodd-Frank Act, Basel III, and the ability to repay and qualified mortgage standards; fluctuations in inflation, interest rates, or monetary policies; the effects of security breaches and computer viruses that may affect the Company’s computer systems or fraud related to debit card products; changes in consumer spending and savings habits; the Company’s growth and profitability; the strength of the U.S. economy and the local economies where the Company conducts operations; the effects of the Company’s lack of a diversified loan portfolio, including the risks of geographic and industry concentrations; harsh weather conditions and man-made disasters; changes in the stock market and other capital and real estate markets; customer acceptance of third-party products and services; increased competition and its effect on pricing, including the long-term impact on our net interest margin from the repeal of Regulation Q; negative publicity and the impact on our reputation; technological changes, especially changes that allow out of market competitors to compete in our markets; changes in accounting; and the Company’s ability to manage the risks involved in the foregoing.  Additional factors can be found in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2015, and the Company’s other filings with the SEC, which are available at the SEC’s internet site (http://www.sec.gov).  Forward-looking statements in this Press Release speak only as of the date of the Press Release, and the Company assumes no obligation to update forward-looking statements or the reasons why actual results could differ.

CAPITAL CITY BANK GROUP, INC. 
EARNINGS HIGHLIGHTS 
Unaudited                    
                     
     Three Months Ended
   Six Months Ended
(Dollars in thousands, except per share data)   Jun 30, 2016   Mar 31, 2016   Jun 30, 2015   Jun 30, 2016   Jun 30, 2015
                     
EARNINGS                    
Net Income $   3,930   $   1,647   $   3,845   $   5,577   $   4,831  
Net Income Per Common Share $     0.22   $     0.10   $     0.22   $     0.32   $     0.28  
PERFORMANCE                    
Return on Average Assets     0.57 %     0.24 %     0.58 %     0.41 %     0.37 %
Return on Average Equity     5.65 %     2.39 %     5.62 %     4.03 %     3.54 %
Net Interest Margin     3.22 %     3.20 %     3.29 %     3.21 %     3.28 %
Noninterest Income as % of Operating Revenue   43.99 %     39.76 %     43.80 %     41.96 %     42.44 %
Efficiency Ratio     82.40 %     90.13 %     83.85 %     86.11 %     88.46 %
CAPITAL ADEQUACY                    
Tier 1 Capital Ratio     15.63 %     16.39 %     15.83 %     15.63 %     15.83 %
Total Capital Ratio     16.44 %     17.20 %     16.72 %     16.44 %     16.72 %
Tangible Common Equity Ratio     7.08 %     7.09 %     7.29 %     7.08 %     7.29 %
Leverage Ratio     9.88 %     10.34 %     10.53 %     9.88 %     10.53 %
Common Equity Tier 1 Ratio     12.65 %     12.82 %     12.34 %     12.65 %     12.34 %
Equity to Assets     9.93 %     9.91 %     10.25 %     9.93 %     10.25 %
ASSET QUALITY                    
Allowance as % of Non-Performing Loans     166.50 %     150.44 %     99.46 %     166.50 %     99.46 %
Allowance as a % of Loans     0.89 %     0.90 %     1.03 %     0.89 %     1.03 %
Net Charge-Offs as % of Average Loans     (0.04 )%     0.21 %     0.33 %     0.08 %     0.41 %
Nonperforming Assets as % of Loans and ORE     1.48 %     1.73 %     3.00 %     1.48 %     3.00 %
Nonperforming Assets as % of Total Assets     0.83 %     0.95 %     1.71 %     0.83 %     1.71 %
STOCK PERFORMANCE                    
High  $   15.96   $   15.88   $   16.32   $   15.96   $   16.33  
Low     13.16       12.83       13.94       12.83       13.16  
Close     13.92       14.59       15.27       13.92       15.27  
Average Daily Trading Volume $   20,192   $   22,720   $   33,514   $   21,426   $   24,435  
                     
CAPITAL CITY BANK GROUP, INC.   
CONSOLIDATED STATEMENT OF FINANCIAL CONDITION  
Unaudited                      
                       
                       
      2016       2015    
(Dollars in thousands)   Second Quarter   First Quarter   Fourth Quarter   Third Quarter   Second Quarter  
ASSETS                      
Cash and Due From Banks $     51,766    $      45,914    $      51,288    $      42,917    $      61,484    
Funds Sold and Interest Bearing Deposits       220,719         304,908         327,617         167,787         185,572    
Total Cash and Cash Equivalents       272,485         350,822         378,905         210,704         247,056    
                       
Investment Securities Available for Sale       485,848         462,444         451,028         444,071         433,688    
Investment Securities Held to Maturity       204,474         187,079         187,892         193,964         201,805    
Total Investment Securities       690,322         649,523         638,920         638,035         635,493    
                       
Loans Held for Sale       12,046         10,475         11,632         10,960         10,991    
                       
Loans, Net of Unearned Interest                      
Commercial, Financial, & Agricultural       207,105         183,681         179,816         169,588         151,116    
Real Estate - Construction       46,930         42,538         46,484         49,475         44,216    
Real Estate - Commercial       485,329         503,259         499,813         491,734         510,962    
Real Estate - Residential       280,015         285,772         285,748         280,690         284,333    
Real Estate - Home Equity       235,394         234,128         233,901         232,254         230,388    
Consumer       252,347         245,197         240,434         238,884         238,599    
Other Loans       11,177         10,297         4,837         10,094         12,048    
Overdrafts       2,177         1,963         1,242         2,464         2,603    
Total Loans, Net of Unearned Interest       1,520,474         1,506,835         1,492,275         1,475,183         1,474,265    
Allowance for Loan Losses       (13,677 )       (13,613 )       (13,953 )       (14,737 )       (15,236 )  
Loans, Net       1,506,797         1,493,222         1,478,322         1,460,446         1,459,029    
                       
Premises and Equipment, Net       97,313         98,029         98,819         98,218         99,108    
Goodwill       84,811         84,811         84,811         84,811         84,811    
Other Real Estate Owned       14,622         17,450         19,290         25,219         30,167    
Other Assets       89,240         87,854         87,161         86,701         87,489    
Total Other Assets       285,986         288,144         290,081         294,949         301,575    
                       
Total Assets $     2,767,636    $      2,792,186    $      2,797,860    $      2,615,094    $      2,654,144    
                       
LIABILITIES                      
Deposits:                      
Noninterest Bearing Deposits $     798,219    $      790,040    $      758,283    $      720,824    $      723,866    
NOW Accounts       804,263         786,432         848,330         688,491         734,237    
Money Market Accounts       259,813         254,682         248,367         261,050         264,475    
Regular Savings Accounts       294,432         286,807         269,162         262,843         255,185    
Certificates of Deposit       168,079         173,447         178,707         181,775         186,881    
Total Deposits       2,324,806         2,291,408         2,302,849         2,114,983         2,164,644    
                       
Short-Term Borrowings       9,609         62,922         61,058         65,355         53,698    
Subordinated Notes Payable       52,887         62,887         62,887         62,887         62,887    
Other Long-Term Borrowings       26,401         27,062         28,265         29,042         29,733    
Other Liabilities       79,109         71,074         68,449         69,168         71,144    
                       
Total Liabilities       2,492,812         2,515,353         2,523,508         2,341,435         2,382,106    
                       
SHAREOWNERS' EQUITY                      
Common Stock       168         172         172         171         172    
Additional Paid-In Capital       32,855         38,671         38,256         37,738         37,625    
Retained Earnings       262,380         259,139         258,181         256,265         255,096    
Accumulated Other Comprehensive Loss, Net of Tax       (20,579 )       (21,149 )       (22,257 )       (20,515 )       (20,855 )  
                       
Total Shareowners' Equity       274,824         276,833         274,352         273,659         272,038    
                       
Total Liabilities and Shareowners' Equity $     2,767,636    $      2,792,186    $      2,797,860    $      2,615,094    $      2,654,144    
                       
OTHER BALANCE SHEET DATA                      
Earning Assets $     2,443,561    $      2,471,741    $      2,470,445    $      2,291,966    $      2,306,322    
Interest Bearing Liabilities       1,615,484         1,654,239         1,696,776         1,551,443         1,587,096    
                       
Book Value Per Diluted Share $   16.31   $   16.04   $   15.93   $   15.91   $   15.80    
Tangible Book Value Per Diluted Share     11.27       11.13       11.00       10.98       10.87    
                       
Actual Basic Shares Outstanding     16,804       17,222       17,157       17,144       17,154    
Actual Diluted Shares Outstanding     16,855       17,254       17,226       17,223       17,216    
                       
CAPITAL CITY BANK GROUP, INC.   
CONSOLIDATED STATEMENT OF OPERATIONS   
Unaudited                              
                               
                        Six Months Ended  
    2016   2015   June 30,  
(Dollars in thousands, except per share data)   Second Quarter   First Quarter   Fourth Quarter   Third Quarter   Second Quarter   2016   2015  
                               
INTEREST INCOME                              
Interest and Fees on Loans $   18,105   $ 18,045 $ 18,861 $ 18,214 $ 18,231 $ 36,150 $ 36,094  
Investment Securities     1,751     1,637   1,572   1,540   1,451   3,388   2,745  
Funds Sold     318     362   169   123   151   680   340  
Total Interest Income     20,174     20,044   20,602   19,877   19,833   40,218   39,179  
                               
INTEREST EXPENSE                              
Deposits     211     221   219   220   259   432   505  
Short-Term Borrowings     38     10   9   14   15   48   36  
Subordinated Notes Payable     343     387   354   344   338   730   670  
Other Long-Term Borrowings     206     216   226   233   237   422   477  
Total Interest Expense     798     834   808   811   849   1,632   1,688  
Net Interest Income     19,376     19,210   19,794   19,066   18,984   38,586   37,491  
Provision for Loan Losses     (97 )   452   513   413   375   355   668  
Net Interest Income after Provision for Loan Losses   19,473     18,758   19,281   18,653   18,609   38,231   36,823  
                               
NONINTEREST INCOME                              
Deposit Fees     5,321     5,400   5,664   5,721   5,682   10,721   11,223  
Bank Card Fees     2,855     2,853   2,866   2,826   2,844   5,708   5,586  
Wealth Management Fees     1,690     1,792   1,893   1,818   1,776   3,482   3,822  
Mortgage Banking Fees     1,267     1,030   1,043   1,306   1,203   2,297   2,190  
Data Processing Fees     335     347   335   400   364   682   737  
Other      3,747     1,255   1,420   1,157   2,925   5,002   4,084  
Total Noninterest Income     15,215     12,677   13,221   13,228   14,794   27,892   27,642  
                               
NONINTEREST EXPENSE                              
Compensation     16,051     16,241   15,833   16,653   16,404   32,292   32,928  
Occupancy, Net     4,584     4,459   4,638   4,446   4,258   9,043   8,654  
Other Real Estate     1,060     1,425   1,241   1,302   931   2,485   2,428  
Other      7,007     6,805   6,568   6,763   6,846   13,812   13,819  
Total Noninterest Expense     28,702     28,930   28,280   29,164   28,439   57,632   57,829  
                               
OPERATING PROFIT     5,986     2,505   4,222   2,717   4,964   8,491   6,636  
Income Tax Expense     2,056     858   1,620   1,034   1,119   2,914   1,805  
NET INCOME $   3,930   $ 1,647 $ 2,602 $ 1,683 $ 3,845 $ 5,577 $ 4,831  
                               
PER SHARE DATA                              
Basic Income $   0.22   $ 0.10 $ 0.16 $ 0.09 $ 0.22 $ 0.32 $ 0.28  
Diluted Income $   0.22   $ 0.10 $ 0.16 $ 0.09 $ 0.22 $ 0.32 $ 0.28  
Cash Dividend  $   0.04   $ 0.04 $ 0.04 $ 0.03 $ 0.03 $ 0.08 $ 0.06  
AVERAGE SHARES                              
Basic      17,144     17,202   17,145   17,150   17,296   17,173   17,402  
Diluted      17,196     17,235   17,214   17,229   17,358   17,215   17,456