Relationships = results. As a super-community bank in the relationship banking business, I believe the cover of this year's annual report says it all. Capital City has been in the business of building relationships for 110 years and those relationships produced record results in 2005.

Earnings of $30.3 million or $1.66 per share were up 11.9% over 2004 after adjusting for the one-time gain from the sale of the bank's credit card portfolio. The results produced a return on assets of 1.22% and a return on equity of 10.56%. Capital City enjoyed a margin of 5.09%, a primary driver of our earnings. Net charge-offs remained historically low at .13% of total loans. Credit quality continues to be our number one internal goal.

Earnings growth is critical to continued success and is the work of over 1,000 dedicated associates who understand we are in the relationship building business. These associates have the company's 2010 goal of $50 million in annual earnings firmly etched in their thought process. The results were driven by a variety of factors including our strategy of focusing on smaller markets not well served by our competitors, and communities which value and appreciate the Capital City style of relationship banking. We want our clients to not only have a bank, but also a banker.

Perhaps the most exciting event in 2005 was the rollout of Absolutely Free Checking, a change in the way we do business, not just a short-lived promotion or campaign. The offering produced new deposits at a rate double initial expectations. I am extremely proud of the talented bankers across the company who set an incredible pace for us.

Capital City Securities finished 2005 with 15 investment executives and is on track to exceed the 2006 goal of more than $1.4 million in revenues. Auto Finance grew at a rate of 22.5% in 2005 while reducing charge-offs by 45%. Our home equity product, FreedomLine, generated $43 million in new loans in 2005 with a 2006 goal of $60 million. Institutional Banking has been one of the best received offerings by our community presidents in smaller markets.

Capital City Services Company provides the often overlooked, but much appreciated back-office support to the company and other institutions in our trade area. Residential lending enjoyed significant growth, as we closed over $311 million in new home loans, which exceeded budget by 8%.

Capital City Trust Company ended the year with almost $700 million in assets under management for individuals, partnerships, corporate clients, and foundations and plans to open an office in Gainesville during 2006. Capital City's talented team of lenders including community presidents, the commercial real estate division, and the business bank grew loans to over $2.0 billion at year-end. This continues to be the primary engine driving our record earnings.

During the year we opened or renovated five offices and welcomed our new clients and associates from the First National Bank of Alachua to the Capital City team. We continue to share our growth strategy with our shareowners, institutional investors, and analysts. The Brand Leadership team of Marketing, Human Resources, and Opportunity Capital City further strengthened the Capital City Bank brand.

It was another great year for CCBG. Tom Barron, Capital City Bank President and Kim Davis, Capital City Bank Group CFO manage the day-to-day effort and should be applauded for their tireless effort and intellect in leading this great group of associates we call the Capital City family. After six years of tremendous service, John Lewis, former President of Super-Lube, retired from the board following the sale of his primary business. I will miss his wise counsel, attention to detail, and drive for world class service.

As always, I welcome your comments and thoughts.