8-K - CCBG - Equibles

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON,

DC 20549

FORM

8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the

Securities Exchange Act of 1934

Date of Report (Date of earliest event reported):

January 28, 2025

CAPITAL CITY BANK GROUP, INC.

(Exact name of registrant as specified in its charter)

Florida

0-13358

59-2273542

(State of Incorporation)

(Commission File Number)

(IRS Employer Identification No.)

217 North Monroe Street,

Tallahassee

Florida

32301

(Address of principal executive offices

(Zip Code)

Registrant's telephone number, including

area code: (

850

)

402-7821

(Former Name or Former Address, if Changed Since Last Report)

Check the appropriate box below if the Form 8-K filing is intended

to simultaneously satisfy the filing obligation of the registrant

under any of the following provisions (see General Instruction

A.2. below):

☐

Written communications pursuant to Rule

425 under the Securities Act (17 CFR 230.425)

☐

Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a

-12)

☐

Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange

Act (17 CFR 240.14d-2(b))

☐

Pre-commencement communications pursuant to Rule 13e-4(c) under the

Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

Title of each class

Trading Symbol(s)

Name of each exchange on which registered

Common Stock, Par value $0.01

CCBG

Nasdaq Stock Market

, LLC

Indicate by check mark whether the registrant is an emerging

growth company as defined in Rule 405 of the Securities Act of 1933

(§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act

of 1934 (§240.12b-2 of this chapter).

Emerging growth company

☐

If an emerging growth company,

indicate by check mark if the registrant has elected not to use the extended transition

period for

complying with any new or revised financial accounting standards pursuant

to Section 13(a) of The Exchange Act.

☐

CAPITAL CITY BANK

GROUP,

INC.

FORM 8-

CURRENT REPORT

Item 2.02.

Results of Operations and Financial Condition.

On January 28, 2025, Capital City Bank Group, Inc. (“CCBG”) issued an earnings

press release reporting CCBG’s financial

results for the three and 12 month periods ended December 31, 2024.

A copy of the press release is attached as Exhibit 99.1 hereto

and incorporated herein by reference.

The information furnished under Item 2.02 of this Current Report, including

the Exhibits attached hereto, shall not be deemed

“filed” for purposes of Section 18 of the Securities Exchange Act of 1934, nor

shall it be deemed incorporated by reference in any

filing under the Securities Act of 1933, except as shall be expressly set forth by specific reference

in such filing.

Item 9.01.

Financial Statements and Exhibits.

(d)

Exhibits

Item No.

Description of Exhibit

99.1

Press release, dated January 28, 2025.

104

Cover Page Interactive Data File (embedded within the Inline XBRL document)

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has

duly caused this report to be signed

on its behalf by the undersigned hereunto duly authorized.

CAPITAL CITY BANK

GROUP,

INC.

Date:

January 28, 2025

By:

/s/ Jeptha E. Larkin

Jeptha E. Larkin,

Executive Vice President

and Chief Financial Officer

EXHIBIT INDEX

Exhibit

Number

Description

99.1

Press release, dated January 28, 2025

104

Cover Page Interactive Data File (embedded within the Inline XBRL document)

ex991

Capital City Bank Group, Inc.

Reports Fourth Quarter 2024 Results

TALLAHASSEE, Fla.

(January 28, 2025) – Capital City Bank Group, Inc. (NASDAQ:

CCBG) today reported net income

attributable to common shareowners of $13.1 million, or $0.77 per diluted

share, for the fourth quarter of 2024 compared to $13.1

million, or $0.77 per diluted share, for the third quarter of 2024, and $11.7

million, or $0.70 per diluted share, for the fourth quarter

of 2023.

For the full year of 2024, net income attributable to common shareowners

totaled $52.9 million, or $3.12 per diluted share, compared

to net income of $52.3 million, or $3.07 per diluted share, for the same

period of 2023.

QUARTER HIGHLIGHTS (4

Quarter 2024

versus 3

Quarter 2024)

Income Statement

●

Tax-equivalent

net interest income totaled $41.2

million compared to $40.3 million for the prior quarter

Net interest margin increased

5 basis points to 4.17% (total deposit costs down 6 basis points partially offset by a

1 basis

point decrease in earning asset yield).

●

Stable credit quality metrics and credit

loss provision – net loan charge

-offs were 25 basis points (annualized) of average

loans –

allowance coverage ratio was 1.10% at December 31, 2024

●

Noninterest income decreased

$0.8 million, or 3.9%, driven by lower mortgage banking revenues

●

Noninterest expense decreased

$1.1 million, or 2.7%, primarily due to lower other expense which included

a gain from the sale

of a banking office

Balance Sheet

●

Loan balances decreased $16.1 million, or

0.6% (average), and $31.5 million, or 1.2% (end of period)

●

Deposit balances increased $28.4

million, or 0.8% (average), and increased $92.9 million, or

2.6% (end of period),

reflective of

the seasonal increase in public fund balances

●

Tangible

book value per share increased $1.05,

or 4.6%, due in part to a favorable year-end re-measurement

adjustment for the

pension plan ($0.60 per diluted share)

FULL YEAR 2024

HIGHLIGHTS

Income Statement

●

Tax-equivalent

net interest income totaled $159.2 million for 202

compared to $159.4 million for 2023

driven by higher yields

across our earning assets, partially offset by higher

deposit cost which was well controlled at 89 basis points

for the year – net

interest margin was 4.08

for 2024

compared to 4.05% for 2023

●

Credit quality metrics remained

strong throughout

the year – allowance coverage ratio remained stable at 1.10%

net loan

charge-offs were 21

basis points of average loans for 2024 versus 18 basis points for 2023

●

Noninterest income increased

$4.4 million, or 6.1%, driven by higher mortgage banking revenues

and wealth management fees

●

Noninterest expense increased

$8.3 million, or 5.3%, primarily due to higher compensation expense reflective

of higher incentive

compensation, merit raises, and higher health insurance costs

Balance Sheet

●

Loan balances increased $50.1 million, or

1.9% (average), and decreased $82.4 million, or 3.0%

(end of period)

●

Deposit balances decreased $72.2

million, or 2.0% (average), and decreased $29.8 million,

or 0.8% (end of period)

●

Tangible

book value per share increased $3.20,

or 15.6%, driven by strong earnings and favorable investment

security and

pension plan accumulated other comprehensive

loss adjustments

“In 2024, we delivered record earnings and advanced our commitment to

creating shareholder value, which is demonstrated by a

15.6% increase in tangible book value per share, a 15.8% increase in the dividend,

and the repurchase of 83,000 shares,” said

William G. Smith, Jr.,

President, Chairman and CEO of Capital City Bank Group. “Our associates also

earned us recognition for the

consecutive year as one of the best banks to work for—an achievement that underscores the

strength of our organization and the

core values we embrace. We

remain focused on soundness, profitability,

growth, and making strategic investments that add long-

term value.

Our fortress balance sheet, diversified revenues, and growth markets together position

us well for 2025 and beyond.”

Discussion of Operating Results

Net Interest Income/Net Interest

Margin

Tax-equivalent net

interest income for the fourth quarter of 2024 totaled $41.2 million, compared

to $40.3 million for the third

quarter of 2024, and $39.3 million for the fourth quarter of 2023.

For 2024, tax-equivalent net interest income totaled $159.2 million

compared to $159.4 million for 2023.

Compared to the third quarter of 2024, the increase reflected higher investment securities

interest due to new investment purchases at higher yields, in addition to

lower deposit interest expense,

partially offset by lower loan

interest due to lower balances.

Compared to 2023, the slight decrease reflected an increase in deposit interest expense

and a decrease

in investment securities interest that was offset by increases in loan

interest and overnight funds interest.

Our net interest margin for the fourth quarter of 2024 was 4.17%,

an increase of five basis points over the third quarter of 2024

and

an increase of 10 basis points over the fourth quarter of 2023.

For the month of December 2024, our net interest margin was 4.18%.

For 2024, our net interest margin was 4.08%, an increase of three basis points

over 2023.

Compared to the third quarter of 2024, the

increase reflected higher yield in the investment portfolio driven

by new purchases during the quarter, in addition

to lower deposit

interest expense.

The increase over 2023 reflected a combination of earning assets re-pricing at higher

interest rates and higher

average loan balances,

partially offset by a higher cost of deposits.

For the fourth quarter of 2024, our cost of funds was 88 basis

points, a decrease of five basis points from the third quarter of 2024

and an increase of 15 basis points over the fourth quarter of

2023.

Our total cost of deposits (including noninterest bearing accounts) was

86 basis points, 92 basis points, and 66 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 fourth quarter of 2024

compared to $1.2 million for the

third quarter of 2024 and $2.0 million for the fourth quarter of

2023.

Compared to the third quarter of 2024, the provision expense

reflected a $0.8 million decrease in the provision for loans held for

investment (“HFI”) and a $0.3

million decrease in the provision

benefit for unfunded loan commitments.

The decrease in the provision for loans HFI was primarily due to lower

loan balances and

slightly lower loss rates.

For 2024, we recorded a provision expense for credit losses of $4.0

million compared to $9.7 million for 2023.

The decrease

reflected a $4.5 million decrease in the provision for loans HFI and a $1.2 million

decrease in the provision for unfunded loan

commitments. The decrease in the provision for loans HFI was primarily due to

lower new loan volume and loan balances in 2024

and favorable loan grade migration.

The decrease in the provision for unfunded loan commitments reflected a lower

level of loan

commitments.

We discuss the allowance

for credit losses further below.

Noninterest Income and Noninterest

Expense

Noninterest income for the fourth quarter of 2024 totaled $18.8 million

compared to $19.5 million for the third quarter of 2024

and

$17.2 million for the fourth quarter of 2023.

Compared to the third quarter of 2024, the $0.7 million decrease from the third quarter

of 2024 reflected a $0.8 million decrease in mortgage banking revenues

attributable to lower production volume and a $0.3 million

decrease in deposit fees that was partially offset by a $0.4 million increase

in wealth management fees, primarily from retail

brokerage.

The $1.6 million increase over the fourth quarter of 2023 was driven by higher mortgage

banking revenues of $0.8

million driven by a higher gain on sale margin and wealth

management fees of $0.9 million, primarily from retail brokerage and

to a

lesser extent trust.

For 2024, noninterest income totaled $76.0 million compared to $71.6 million

for 2023, primarily attributable to a $3.9

million

increase in mortgage banking revenues and a $2.8 million increase in wealth management

fees, partially offset by a $2.2 million

decrease in other income.

The increase in mortgage banking revenues was due to a higher gain on sale margin.

The increase in

wealth management fees was primarily driven by higher retail brokerage

fees and to a lesser extent trust fees, primarily attributable

to both new account growth and higher account values driven by higher market

returns.

The decrease in other income was primarily

attributable to a $1.4 million gain from the sale of mortgage servicing rights

in 2023, and to a lesser extent a decrease in vendor

bonus income and miscellaneous income.

Noninterest expense for the fourth quarter of 2024 totaled $41.8 million

compared to $42.9 million for the third quarter of 2024

and

$40.0 million for the fourth quarter of 2023.

The $1.1 million decrease from the third quarter of 2024 was primarily attributable

lower other expense of $1.2 million and occupancy expense of $0.2

million that was partially offset by a $0.3 million increase in

compensation expense.

The decrease in other expense was primarily attributable to a $1.0 million decrease

in other real estate

expense driven by the sale of a banking office and lower miscellaneous

expense of $0.5 million which reflected a non-routine VISA

Class B swap payment in the third quarter of 2024.

The decrease in occupancy expense reflected lower property tax and software

license expense.

The increase in compensation was driven by higher incentive plan compensation.

Compared to the fourth quarter

of 2023, the $1.8 million increase was driven by a $2.3

million increase in compensation expense that was partially offset by

a $0.2

million decrease in occupancy expense and a $0.3 million decrease in other

expense.

The unfavorable variance in compensation

expense reflected a $1.4 million increase in salary expense and a $0.9 million increase

in other benefit expense with the salary

expense driven by higher incentive compensation and merit adjustments and

the associate benefit expense reflective of higher health

insurance cost.

For 2024, noninterest expense totaled $165.3 million compared to

$157.0 million for 2023, primarily attributable to increases in

compensation expense of $6.9 million, occupancy expense of $0.3 million,

and other expense of $1.1 million.

The increase in

compensation reflected a $5.4 million increase in salary expense and

a $1.6 million increase in other associate benefit expense.

The

increase in salary expense was primarily due to a lower level of realized loan cost

(credit offset to salary expense) of $3.1 million

(lower new loan volume),

higher base salary expense of $2.2 million (primarily annual merit raises),

and a $1.2 million increase in

cash incentive compensation that was partially offset

by lower commission expense of $1.4

million (lower residential mortgage

volume).

The unfavorable variance in other associate benefit expense was due to a $0.9 million increase

in associate insurance cost

and a $0.6 million increase in stock compensation expense.

The increase in occupancy expense was attributable to increases in

software license and maintenance agreement expenses.

The increase in other expense was driven by a $1.1 million increase in other

real estate expense and a $1.4 million increase in processing expense that was partially

offset by a $1.4 million decrease in

miscellaneous expense.

The increase in other real estate expense reflected a lower level of gains from the sale of banking offices

2024.

The increase in processing expense reflected both inflationary increases on contract

renewals and the outsourcing of our core

processing system.

The decrease in miscellaneous expense was attributable to lower pension plan expense

for the non-service

related component of the plan.

Income Taxes

We realized income

tax expense of $4.2 million (effective rate of 24.3%) for the fourth quarter

of 2024 compared to $3.0 million

(effective rate of 19.1%) for the third quarter of 2024 and $2.9

million (effective rate of 20.3%) for the fourth quarter of

2023.

Compared to the third quarter of 2024, the increase in our effective

tax rate was attributable to a lower than projected level of

pre-tax income from Capital City Home Loans (“CCHL”) in relation to

our consolidated income as the non-controlling interest

adjustment for CCHL is accounted for as a permanent tax adjustment.

Further, we realized a higher than projected Internal

Revenue

Code (“IRC”) Section 162(m) limitation related to current and future

compensation.

For 2024, we realized income tax expense of

$13.9 million (effective rate of 21.2%) compared to $13.0 million

(effective rate of 20.4%) for 2023 with the increase in the

effective tax rate primarily attributable to a higher

IRC Section 162(m) limitation and lower tax-exempt interest income.

Absent

discrete items or new tax credit investments, we expect our annual effective

tax rate to approximate 24% for 2025.

Discussion of Financial Condition

Earning Assets

Average earning

assets totaled $3.922 billion for the fourth quarter of 2024, an increase of $38.5 million, or

1.0 %, over the third

quarter of 2024, and an increase of $97.9 million, or 2.6%, over the

fourth quarter of 2023.

The increase over both prior periods

was primarily driven by higher deposit balances (see below –

Deposits

Compared to the third quarter of 2024, the change in

earning asset mix was primarily attributable to a $41.4 million increase

in short term investments (overnight funds sold), a $6.7

million increase in investment securities, and $6.5 million increase in loans

held for sale, partially offset by a $16.1 million decrease

in loans HFI.

Compared to the fourth quarter of 2023, the change in earning asset mix reflected a $198.

million increase in short

term investments (overnight funds sold) that was partially offset

by a $48.0 million decrease in investment securities, a $33.8

million decrease in loans HFI, and a $18.7 million decrease in loans

held for sale.

Average loans

HFI for the fourth quarter of 2024 decreased $16.1 million, or 0.6%, from the third quarter

of 2024

and decreased

$33.8

million, or 1.3%, from the fourth quarter of 2023.

Compared to the third quarter of 2024,

the decline was primarily

attributable to decreases in consumer loans (primarily indirect auto) of $18.3

million and commercial mortgage real estate loans of

$24.1 million, partially offset by increases in construction

real estate loans of $13.1 million, and residential real estate loans of $11.6

million.

Compared to the fourth quarter of 2023, the decrease was driven by decreases

in consumer loans (primarily indirect auto)

of $72.8 million, commercial loans of $30.2 million, and commercial mortgage

real estate loans of $25.3 million, partially offset by

increases in residential real estate loans of $70.8 million, construction real

estate loans of $16.6 million, and home equity loans of

$10.2 million.

Loans HFI at December 31, 2024 decreased $31.5 million, or 1.2%, from

September 30, 2024 and decreased $82.4 million, or 3.0%,

from December 31, 2023.

Compared to September 30, 2024, the decrease was driven by decreases

in commercial mortgage real

estate loans of $40.9 million, consumer loans (primarily indirect auto)

of $13.8 million, and commercial loans of $5.4 million,

partially offset by increases in home equity loans of $9.1 million,

other loans of $13.5 million, and residential real estate loans of

$5.0 million.

Compared to December 31, 2023, the decrease was primarily attributable

to decreases in consumer loans (primarily

indirect auto) of $71.5 million, commercial mortgage real estate loans

of $46.4 million, and commercial loans of $36.0 million,

partially offset by increases in residential real estate loans of $27.2

million, construction real estate loans of $23.9 million, and home

equity loans of $9.1 million.

Allowance for Credit Losses

At December 31, 2024, the allowance for credit losses for loans HFI totaled

$29.3 million compared to $29.8 million at September

30, 2024 and $29.9 million at December 31, 2023.

Activity within the allowance is provided on Page 9.

The decreases in the

allowance from September 30, 2024 and December 31, 2023 were

primarily attributable to lower loan balances and favorable loan

migration.

Net loan charge-offs were 25 basis points of average loans for

the fourth quarter of 2024 versus 19 basis points for the

third quarter of 2024.

For 2024, net loan charge-offs were 21 basis points of average

loans compared to 18 basis points in 2023.

December 31, 2024, the allowance represented 1.10% of loans HFI compared

to 1.11% at September 30, 2024, and 1.10% at

December 31, 2023.

Credit Quality

Nonperforming assets (nonaccrual loans and other real estate) totaled

$6.7 million at December 31, 2024 compared to $7.2 million

at September 30, 2024 and $6.2 million at December 31, 2023.

At December 31, 2024, nonperforming assets as a percent of total

assets equaled 0.15%, compared to 0.17% at September 30, 2024

and 0.15% at December 31, 2023.

Nonaccrual loans totaled $6.3

million at December 31, 2024, a $0.3 million decrease from September 30,

2024 and a $0.1 million increase over December 31,

2023.

Further, classified loans totaled $19.9 million

at December 31, 2024, a $5.6 million decrease from September 30, 202

and a

$2.3 million decrease from December 31, 2023.

Deposits

Average total

deposits were $3.600 billion for the fourth quarter of 2024, an increase of $28.4 million, or 0.8%,

over the third

quarter of 2024 and an increase of $51.9 million, or 1.5%, over the fourth quarter

of 2023.

Compared to the third quarter of 2024,

the increase was primarily attributable to higher NOW account balances which

reflected the seasonal inflow of public funds from

municipal clients as they receive their tax receipts beginning in late November

The increase over the fourth quarter of 2023

reflected higher NOW,

MMA, and certificates of deposit (“CD”) balances that were

partially offset by decreases in noninterest

bearing and savings balances.

During 2024, we realized a re-mix in deposits as rate sensitive clients sought

higher yield deposit

products.

Average core deposit balances

(total deposits less public funds) increased $20.3 million over the third quarter of

2024 and

$28.4 million over the fourth quarter of 2023.

At December 31, 2024, total deposits were $3.672 billion, an increase of $92.9

million, or 2.6%, over September 30, 2024 and a

decrease of $29.8 million, or 0.8%, from December 31, 202

Compared to the third quarter of 2024, the increase was primarily

due to a $110.7 million increase in NOW account

balances which reflected the aforementioned seasonal inflow of public funds

balances.

The decrease from the fourth quarter of 2023 was driven by lower noninterest

bearing, NOW,

and savings account

balances that were partially offset by higher MMA and CD balances

which reflected the aforementioned re-mix in balances during

2024.

Core deposit balances (total deposits less public funds) decreased $50.3 million

from the third quarter of 2024 and increased

$21.9 million over the fourth quarter of 2023.

Liquidity

The Bank maintained an average net overnight funds (deposits with banks plus

FED funds sold less FED funds purchased) sold

position of $298.3 million in the fourth quarter of 2024 compared to $256.9

million in the third quarter of 2024 and $99.8 million in

the fourth quarter of 2023.

Compared to both prior periods, the increases reflected growth in average

core and public fund deposit

balances.

At December 31, 2024, we had the ability to generate approximately $1.535 billion

(excludes overnight funds position of $321

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.

We also view our

investment portfolio as a liquidity source and have the option to pledge securities in our

portfolio as collateral for

borrowings or deposits, and/or to sell selected securities.

Our portfolio consists of debt issued by the U.S. Treasury,

U.S.

governmental agencies, municipal governments, and corporate entities.

At December 31, 2024, the weighted-average maturity and

duration of our portfolio were 2.54 years and 2.19 years

respectively, and the

available-for-sale portfolio had a net unrealized after-

tax loss of $19.2 million.

Capital

Shareowners’ equity was $495.3 million at December 31, 2024

compared to $476.5 million at September 30, 2024 and $440.6

million at December 31, 2023.

For the fourth quarter of 2024, shareowners’ equity was positively impacted

by net income

attributable to common shareowners of $13.1 million, a net $7.6 million

decrease in the accumulated other comprehensive loss, the

issuance of stock of $0.9

million, stock compensation accretion of $0.7 million, and a $0.4 million

reclassification from temporary

equity (concurrent with the agreement to assign the minority membership

interest (49%) in Capital City Home Loans, LLC,

temporary equity was reclassified to other liabilities and included

a $0.4 million net credit to retained earnings to account for the

difference between the fair value and the book value of the minority

interest).

The net favorable change in accumulated other

comprehensive loss reflected a $10.1 million decrease in the pension

plan loss from the year-end re-measurement of the plan and a

$0.7 million increase in the fair value of the interest rate swap related to subordinated

debt, that was partially offset by a $3.2

million increase in the investment securities loss.

Shareowners’ equity was reduced by common stock dividends of $3.9

million

($0.23 per share).

For the full year 2024, shareowners’ equity was positively impacted

by net income attributable to common shareowners of $52.9

million, a net $15.7 million decrease in the accumulated other comprehensive

loss, the issuance of stock of $3.1 million, and stock

compensation accretion of $1.9 million.

The net favorable change in accumulated other comprehensive loss reflected a $10.1

million decrease in the pension plan loss from the year-end

re-measurement of the plan and a $5.6 million decrease in the

investment securities loss.

Shareowners’ equity was reduced by common stock dividends of $14.9

million ($0.88 per share), the

repurchase of stock of $2.3 million (82,540 shares), net adjustments totaling

$1.4 million related to transactions under our stock

compensation plans,

and a $0.3 million reclassification from temporary equity.

At December 31, 2024, our total risk-based capital ratio was 18.77

compared to 17.97% at September 30, 2024 and 16.57% at

December 31, 2023.

Our common equity tier 1 capital ratio was 15.64%, 14.88%, and 13.52%, respectively,

on these dates.

Our

leverage ratio was 11.05%, 10.89%, and 10.30%,

respectively, on these dates.

At December 31, 2024, 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 was 9.55% at December 31, 2024 compared to 9.28% and

8.26% at September 30, 2024 and December 31,

2023, respectively.

If our unrealized held-to-maturity securities losses of $16.0 million (after-tax)

were recognized in accumulated

other comprehensive loss, our adjusted tangible capital ratio would

be 9.17%.

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 $4.3 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,

securities brokerage services and

financial advisory services, including the sale of life insurance, risk management

and asset protection services.

Our bank

subsidiary, Capital City Bank,

was founded in 1895 and now has 63 banking offices and 104 ATMs/ITMs

in Florida, Georgia and

Alabama.

For more information about Capital City Bank Group, Inc., visit 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: our ability to successfully

manage credit risk, interest rate risk, liquidity risk, and other risks inherent

to our industry; the effects of changes in the level of

checking or savings account deposits and the competition for deposits on our

funding costs, net interest margin and ability to replace

maturing deposits and advances; legislative or regulatory changes; adverse

developments in the financial services industry generally;

inflation, interest rate, market and monetary fluctuations; uncertainty

in the pricing of residential mortgage loans that we sell, as well

as competition for the mortgage servicing rights related to these loans; interest rate

risk and price risk resulting from retaining

mortgage servicing rights and the effects of higher

interest rates on our loan origination volumes; changes in monetary and fiscal

policies of the U.S. Government; the cost and effects of cybersecurity

incidents or other failures, interruptions, or security breaches

of our systems or those of our customers or third-party providers; the effects

of fraud related to debit card products; the accuracy of

our financial statement estimates and assumptions; changes in accounting

principles, policies, practices or guidelines; the frequency

and magnitude of foreclosure of our loans; the effects of

our lack of a diversified loan portfolio; the strength of the local economies

in which we operate; our ability to declare and pay dividends; structural changes

in the markets for origination, sale and servicing of

residential mortgages; our ability to retain key personnel; the effects

of natural disasters (including hurricanes), widespread health

emergencies (including pandemics), military conflict,

terrorism, civil unrest or other geopolitical events; our ability to comply with

the extensive laws and regulations to which we are subject; the impact of the restatement

of our previously issued consolidated

statements of cash flows and any deficiencies in the processes undertaken to

effect such restatements; any inability to implement and

maintain effective internal control over financial reporting and/or

disclosure control or inability to remediate our existing material

weaknesses in our internal controls deemed ineffective; the willingness

of clients to accept third-party products and services rather

than our products and services; technological changes; the outcomes of

litigation or regulatory proceedings; negative publicity and

the impact on our reputation; changes in consumer spending and saving habits;

growth and profitability of our noninterest income;

the limited trading activity of our common stock; the concentration of ownership

of our common stock; anti-takeover provisions

under federal and state law as well as our Articles of Incorporation and our Bylaws; other

risks described from time to time in our

filings with the Securities and Exchange Commission; and our ability

to manage the risks involved in the foregoing. Additional

factors can be found in our Annual Report on Form 10-K for the fiscal year

ended December 31, 2023, as amended, and our 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 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

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.

believe these measures are useful to investors because it allows

investors to more easily compare our capital adequacy to other companies in the

industry.

The GAAP to non-GAAP reconciliations are provided below.

(Dollars in Thousands, except per share data)

Dec 31, 2024

Sep 30, 2024

Jun 30, 2024

Mar 31, 2024

Dec 31, 2023

Shareowners' Equity (GAAP)

495,317

476,499

460,999

448,314

440,625

Less: Goodwill and Other Intangibles (GAAP)

92,773

92,813

92,853

92,893

92,933

Tangible Shareowners' Equity (non-GAAP)

402,544

383,686

368,146

355,421

347,692

Total Assets (GAAP)

4,307,142

4,225,316

4,225,695

4,259,922

4,304,477

Less: Goodwill and Other Intangibles (GAAP)

92,773

92,813

92,853

92,893

92,933

Tangible Assets (non-GAAP)

4,214,369

4,132,503

4,132,842

4,167,029

4,211,544

Tangible Common Equity Ratio (non-GAAP)

A/B

9.55%

9.28%

8.91%

8.53%

8.26%

Actual Diluted Shares Outstanding (GAAP)

17,018,122

16,980,686

16,970,228

16,947,204

17,000,758

Tangible Book Value

per Diluted Share (non-GAAP)

A/C

23.65

22.60

21.69

20.97

20.45

CAPITAL CITY BANK

GROUP,

INC.

EARNINGS HIGHLIGHTS

Unaudited

Three Months Ended

Twelve Months Ended

(Dollars in thousands, except per share data)

Dec 31, 2024

Sep 30, 2024

Dec 31, 2023

Dec 31, 2024

Dec 31, 2023

EARNINGS

Net Income Attributable to Common Shareowners

13,090

13,118

11,720

52,915

52,258

Diluted Net Income Per Share

0.77

0.70

3.12

3.07

PERFORMANCE

Return on Average Assets (annualized)

1.22

1.24

1.12

1.25

1.22

Return on Average Equity (annualized)

10.60

10.87

10.69

11.18

12.40

Net Interest Margin

4.17

4.12

4.07

4.08

4.05

Noninterest Income as % of Operating Revenue

31.34

32.67

30.46

32.34

31.05

Efficiency Ratio

69.74

71.81

70.82

70.30

67.99

CAPITAL ADEQUACY

Tier 1 Capital

17.58

16.77

15.37

17.58

15.37

Total Capital

18.77

17.97

16.57

18.77

16.57

Leverage

11.05

10.89

10.30

11.05

10.30

Common Equity Tier 1

15.64

14.88

13.52

15.64

13.52

Tangible Common Equity

(1)

9.55

9.28

8.26

9.55

8.26

Equity to Assets

11.50

11.28

10.24

11.50

10.24

ASSET QUALITY

Allowance as % of Non-Performing Loans

464.14

452.64

479.70

464.14

479.70

Allowance as a % of Loans HFI

1.10

1.11

1.10

Net Charge-Offs as % of Average Loans HFI

0.25

0.19

0.23

0.21

0.18

Nonperforming Assets as % of Loans HFI and OREO

0.25

0.27

0.23

0.25

0.23

Nonperforming Assets as % of Total Assets

0.15

0.17

0.15

STOCK PERFORMANCE

High

40.86

36.67

32.56

40.86

36.86

Low

33.00

26.72

26.12

25.45

26.12

36.65

35.29

29.43

36.65

29.43

Average Daily Trading Volume

27,484

37,151

33,297

31,390

33,775

(1)

Tangible common equity ratio is a non-GAAP financial measure. For additional information, including a

reconciliation to GAAP, refer to Page 7.

CAPITAL CITY BANK GROUP, INC.

CONSOLIDATED STATEMENT

OF FINANCIAL CONDITION

Unaudited

2024

2023

(Dollars in thousands)

Fourth Quarter

Third Quarter

Second Quarter

First Quarter

Fourth Quarter

ASSETS

Cash and Due From Banks

70,543

83,431

75,304

73,642

83,118

Funds Sold and Interest Bearing Deposits

321,311

261,779

272,675

231,047

228,949

Total Cash and Cash Equivalents

391,854

345,210

347,979

304,689

312,067

Investment Securities Available for Sale

403,345

336,187

310,941

327,338

337,902

Investment Securities Held to Maturity

567,155

561,480

582,984

603,386

625,022

Other Equity Securities

2,399

6,976

2,537

3,445

3,450

Total Investment Securities

972,899

904,643

896,462

934,169

966,374

Loans Held for Sale

28,672

31,251

24,022

24,705

28,211

Loans Held for Investment ("HFI"):

Commercial, Financial, & Agricultural

189,208

194,625

204,990

218,298

225,190

Real Estate - Construction

219,994

218,899

200,754

202,692

196,091

Real Estate - Commercial

779,095

819,955

823,122

823,690

825,456

Real Estate - Residential

1,028,498

1,023,485

1,012,541

1,012,791

1,001,257

Real Estate - Home Equity

220,064

210,988

211,126

214,617

210,920

Consumer

199,479

213,305

234,212

254,168

270,994

Other Loans

14,006

461

2,286

3,789

2,962

Overdrafts

1,206

1,378

1,192

1,127

1,048

Total Loans Held for Investment

2,651,550

2,683,096

2,690,223

2,731,172

2,733,918

Allowance for Credit Losses

(29,251)

(29,836)

(29,219)

(29,329)

(29,941)

Loans Held for Investment, Net

2,622,299

2,653,260

2,661,004

2,701,843

2,703,977

Premises and Equipment, Net

81,952

81,876

81,414

81,452

81,266

Goodwill and Other Intangibles

92,773

92,813

92,853

92,893

92,933

Other Real Estate Owned

367

650

Other Assets

116,326

115,613

121,311

120,170

119,648

Total Other Assets

291,418

290,952

296,228

294,516

293,848

Total Assets

4,307,142

4,225,316

4,225,695

4,259,922

4,304,477

LIABILITIES

Deposits:

Noninterest Bearing Deposits

1,306,254

1,330,715

1,343,606

1,361,939

1,377,934

NOW Accounts

1,285,281

1,174,585

1,177,180

1,212,452

1,327,420

Money Market Accounts

404,396

401,272

413,594

398,308

319,319

Savings Accounts

506,766

507,604

514,560

530,782

547,634

Certificates of Deposit

169,280

164,901

159,624

151,320

129,515

Total Deposits

3,671,977

3,579,077

3,608,564

3,654,801

3,701,822

Repurchase Agreements

26,240

29,339

22,463

23,477

26,957

Other Short-Term Borrowings

2,064

7,929

3,307

8,409

8,384

Subordinated Notes Payable

52,887

Other Long-Term Borrowings

794

1,009

265

315

Other Liabilities

57,863

71,974

69,987

65,181

66,080

Total Liabilities

3,811,825

3,742,000

3,758,217

3,805,020

3,856,445

Temporary Equity

6,817

6,479

6,588

7,407

SHAREOWNERS' EQUITY

Common Stock

170

169

170

Additional Paid-In Capital

37,684

36,070

35,547

34,861

36,326

Retained Earnings

463,949

454,342

445,959

435,364

426,275

Accumulated Other Comprehensive Loss, Net of Tax

(6,486)

(14,082)

(20,676)

(22,080)

(22,146)

Total Shareowners' Equity

495,317

476,499

460,999

448,314

440,625

Total Liabilities, Temporary Equity and Shareowners' Equity

4,307,142

4,225,316

4,225,695

4,259,922

4,304,477

OTHER BALANCE SHEET DATA

Earning Assets

3,974,431

3,880,769

3,883,382

3,921,093

3,957,452

Interest Bearing Liabilities

2,447,708

2,339,311

2,344,624

2,377,900

2,412,431

Book Value Per Diluted Share

29.11

28.06

27.17

26.45

25.92

Tangible Book Value

Per Diluted Share

(1)

23.65

22.60

21.69

20.97

20.45

Actual Basic Shares Outstanding

16,975

16,944

16,942

16,929

16,950

Actual Diluted Shares Outstanding

17,018

16,981

16,970

16,947

17,001

(1)

Tangible book value per diluted share is a non-GAAP financial measure. For additional

information, including a reconciliation to GAAP, refer to Page 7.

CAPITAL CITY BANK

GROUP,

INC.

CONSOLIDATED STATEMENT

OF OPERATIONS

Unaudited

2024

2023

Twelve Months

Ended December 31,

(Dollars in thousands, except per share data)

Fourth

Quarter

Third

Quarter

Second

Quarter

First

Quarter

Fourth

Quarter

2024

2023

INTEREST INCOME

Loans, including Fees

41,453

41,659

41,138

40,683

40,407

164,933

152,250

Investment Securities

4,694

4,155

4,004

4,244

4,392

17,097

18,692

Federal Funds Sold and Interest Bearing Deposits

3,596

3,514

3,624

1,893

1,385

12,627

10,126

Total Interest Income

49,743

49,328

48,766

46,820

46,184

194,657

181,068

INTEREST EXPENSE

Deposits

7,766

8,223

8,579

7,594

5,872

32,162

17,582

Repurchase Agreements

199

221

217

201

199

838

513

Other Short-Term Borrowings

310

242

1,538

Subordinated Notes Payable

581

610

630

628

627

2,449

2,427

Other Long-Term Borrowings

Total Interest Expense

8,640

9,117

9,497

8,465

7,013

35,719

22,080

Net Interest Income

41,103

40,211

39,269

38,355

39,171

158,938

158,988

Provision for Credit Losses

701

1,206

1,204

920

2,025

4,031

9,714

Net Interest Income after Provision for Credit Losses

40,402

39,005

38,065

37,435

37,146

154,907

149,274

NONINTEREST INCOME

Deposit Fees

5,207

5,512

5,377

5,250

5,304

21,346

21,325

Bank Card Fees

3,697

3,624

3,766

3,620

3,713

14,707

14,918

Wealth Management Fees

5,222

4,770

4,439

4,682

4,276

19,113

16,337

Mortgage Banking Revenues

3,118

3,966

4,381

2,878

2,327

14,343

10,400

Other

1,516

1,641

1,643

1,667

1,537

6,467

8,630

Total Noninterest Income

18,760

19,513

19,606

18,097

17,157

75,976

71,610

NONINTEREST EXPENSE

Compensation

26,108

25,800

24,406

24,407

23,822

100,721

93,787

Occupancy, Net

6,893

7,098

6,997

6,994

7,098

27,982

27,660

Other

8,781

10,023

9,038

8,770

9,038

36,612

35,576

Total Noninterest Expense

41,782

42,921

40,441

40,171

39,958

165,315

157,023

OPERATING PROFIT

17,380

15,597

17,230

15,361

14,345

65,568

63,861

Income Tax Expense

4,219

2,980

3,189

3,536

2,909

13,924

13,040

Net Income

13,161

12,617

14,041

11,825

11,436

51,644

50,821

Pre-Tax Loss (Income) Attributable to Noncontrolling Interest

(71)

501

109

732

284

1,271

1,437

NET INCOME ATTRIBUTABLE

COMMON SHAREOWNERS

13,090

13,118

14,150

12,557

11,720

52,915

52,258

PER COMMON SHARE

Basic Net Income

0.77

0.84

0.74

0.69

3.12

3.08

Diluted Net Income

0.77

0.83

0.74

0.70

3.12

3.07

Cash Dividend

0.23

0.21

0.20

0.88

0.76

AVERAGE

Basic

16,946

16,943

16,931

16,951

16,947

16,943

16,987

Diluted

16,990

16,979

16,960

16,969

16,997

16,969

17,023

CAPITAL CITY BANK GROUP,

INC.

ALLOWANCE FOR CREDIT LOSSES ("ACL")

AND CREDIT QUALITY

Unaudited

2024

2023

Twelve Months Ended

December 31,

(Dollars in thousands, except per share data)

Fourth

Quarter

Third

Quarter

Second

Quarter

First

Quarter

Fourth

Quarter

2024

2023

ACL - HELD FOR INVESTMENT LOANS

Balance at Beginning of Period

29,836

29,219

29,329

29,941

29,083

29,941

25,068

Transfer from Other Liabilities

(50)

Provision for Credit Losses

1,085

1,879

1,129

932

2,354

5,025

9,529

Net Charge-Offs (Recoveries)

1,670

1,262

1,239

1,494

1,562

5,665

4,722

Balance at End of Period

29,251

29,836

29,219

29,329

29,941

29,251

29,941

As a % of Loans HFI

1.10%

1.11%

1.09%

1.07%

1.10%

As a % of Nonperforming Loans

464.14%

452.64%

529.79%

431.46%

479.70%

464.14%

479.70%

ACL - UNFUNDED COMMITMENTS

Balance at Beginning of Period

2,522

3,139

3,121

3,191

3,502

3,191

2,989

Provision for Credit Losses

(367)

(617)

(70)

(311)

(1,036)

202

Balance at End of Period

(1)

2,155

2,522

3,139

3,121

3,191

2,155

3,191

ACL - DEBT SECURITIES

Provision for Credit Losses

(17)

(56)

(18)

(17)

CHARGE-OFFS

Commercial, Financial and Agricultural

499

331

400

282

217

1,512

511

Real Estate - Construction

Real Estate - Commercial

120

Real Estate - Residential

Real Estate - Home Equity

132

Consumer

1,307

1,315

1,061

1,550

1,689

5,233

5,754

Overdrafts

574

611

571

638

602

2,394

2,789

Total Charge-Offs

2,504

2,283

2,032

2,563

2,587

9,382

9,292

RECOVERIES

Commercial, Financial and Agricultural

103

176

379

277

Real Estate - Construction

Real Estate - Commercial

204

261

Real Estate - Residential

176

253

Real Estate - Home Equity

137

226

Consumer

352

405

313

410

433

1,480

1,936

Overdrafts

298

288

342

353

442

1,281

1,824

Total Recoveries

834

1,021

793

1,069

1,025

3,717

4,570

NET CHARGE-OFFS (RECOVERIES)

1,670

1,262

1,239

1,494

1,562

5,665

4,722

Net Charge-Offs as a % of Average Loans

HFI

(2)

0.25%

0.19%

0.18%

0.22%

0.23%

0.21%

0.18%

CREDIT QUALITY

Nonaccruing Loans

6,302

6,592

5,515

6,798

6,242

Other Real Estate Owned

367

650

Total Nonperforming Assets ("NPAs")

6,669

7,242

6,165

6,799

6,243

Past Due Loans 30-89 Days

4,311

9,388

5,672

5,392

6,855

Classified Loans

19,896

25,501

25,566

22,305

22,203

Nonperforming Loans as a % of Loans HFI

0.24%

0.25%

0.21%

0.25%

0.23%

NPAs as a % of Loans HFI and Other Real Estate

0.25%

0.27%

0.23%

0.25%

0.23%

NPAs as a % of Total

Assets

0.15%

0.17%

0.15%

0.16%

0.15%

(1)

Recorded in other liabilities

(2)

Annualized

CAPITAL CITY BANK GROUP,

INC.

AVERAGE

BALANCE AND INTEREST RATES

Unaudited

Fourth Quarter 2024

Third Quarter 2024

Second Quarter 2024

First Quarter 2024

Fourth Quarter 2023

Full Year 2024

Full Year 2023

(Dollars in thousands)

Average

Balance

Interest

Average

Rate

Average

Balance

Interest

Average

Rate

Average

Balance

Interest

Average

Rate

Average

Balance

Interest

Average

Rate

Average

Balance

Interest

Average

Rate

Average

Balance

Interest

Average

Rate

Average

Balance

Interest

Average

Rate

ASSETS:

Loans Held for Sale

31,047

976

7.89

24,570

720

7.49

26,281

517

5.26

27,314

563

5.99

49,790

817

6.50

27,306

2,776

6.72

55,510

3,232

5.82

Loans Held for Investment

(1)

2,677,396

40,521

6.07

2,693,533

40,985

6.09

2,726,748

40,683

6.03

2,728,629

40,196

5.95

2,711,243

39,679

5.81

2,706,461

162,385

6.03

2,656,394

149,366

5.62

Investment Securities

Taxable Investment Securities

914,353

4,688

2.04

907,610

4,148

1.82

918,989

3,998

1.74

952,328

4,239

1.78

962,322

4,389

1.81

923,253

17,073

1.85

1,016,550

18,652

1.83

Tax-Exempt Investment Securities

(1)

849

4.31

846

4.33

843

4.36

856

4.34

862

4.32

848

4.34

2,199

2.68

Total Investment Securities

915,202

4,697

2.04

908,456

4,158

1.82

919,832

4,007

1.74

953,184

4,248

1.78

963,184

4,396

1.82

924,101

17,110

1.85

1,018,749

18,711

1.83

Federal Funds Sold and Interest Bearing

Deposits

298,255

3,596

4.80

256,855

3,514

5.44

262,419

3,624

5.56

140,488

1,893

5.42

99,763

1,385

5.51

239,712

12,627

5.27

203,147

10,126

4.98

Total Earning Assets

3,921,900

49,790

5.05

3,883,414

49,377

5.06

3,935,280

48,831

4.99

3,849,615

46,900

4.90

3,823,980

46,277

4.80

3,897,580

194,898

5.00

3,933,800

181,435

4.61

Cash and Due From Banks

73,992

70,994

74,803

75,763

76,681

73,881

75,786

Allowance for Credit Losses

(30,107)

(29,905)

(29,564)

(30,030)

(29,998)

(29,902)

(28,190)

Other Assets

293,884

291,359

291,669

295,275

296,114

293,044

297,290

Total Assets

4,259,669

4,215,862

4,272,188

4,190,623

4,166,777

4,234,603

4,278,686

LIABILITIES:

Noninterest Bearing Deposits

1,323,556

1,332,305

1,346,546

1,344,188

1,416,825

1,336,601

1,507,657

NOW Accounts

1,182,073

3,826

1.29

1,145,544

4,087

1.42

1,207,643

4,425

1.47

1,201,032

4,497

1.51

1,138,461

3,696

1.29

1,183,962

16,835

1.42

1,172,861

12,375

1.06

Money Market Accounts

422,615

2,526

2.38

418,625

2,694

2.56

407,387

2,752

2.72

353,591

1,985

2.26

318,844

1,421

1.77

400,664

9,957

2.49

299,581

3,670

1.22

Savings Accounts

504,859

179

0.14

512,098

180

0.14

519,374

176

0.14

539,374

188

0.14

557,579

202

0.14

518,869

723

0.14

592,033

598

0.10

Time Deposits

167,321

1,235

2.94

163,462

1,262

3.07

160,078

1,226

3.08

138,328

924

2.69

116,797

553

1.88

157,342

4,647

2.95

97,480

939

0.96

Total Interest Bearing Deposits

2,276,868

7,766

1.36

2,239,729

8,223

1.46

2,294,482

8,579

1.50

2,232,325

7,594

1.37

2,131,681

5,872

1.09

2,260,837

32,162

1.42

2,161,955

17,582

0.81

Total Deposits

3,600,424

7,766

0.86

3,572,034

8,223

0.92

3,641,028

8,579

0.95

3,576,513

7,594

0.85

3,548,506

5,872

0.66

3,597,438

32,162

0.89

3,669,612

17,582

0.48

Repurchase Agreements

28,018

199

2.82

27,126

221

3.24

26,999

217

3.24

25,725

201

3.14

26,831

199

2.94

26,970

838

3.11

19,917

513

2.57

Other Short-Term Borrowings

6,510

5.06

2,673

7.63

6,592

4.16

3,758

4.16

16,906

310

7.29

4,882

242

4.94

24,146

1,538

6.37

Subordinated Notes Payable

52,887

581

4.30

52,887

610

4.52

52,887

630

4.71

52,887

628

4.70

52,887

627

4.64

52,887

2,449

4.56

52,887

2,427

4.53

Other Long-Term Borrowings

794

5.57

795

5.55

258

4.31

281

4.80

336

4.72

534

5.31

408

4.77

Total Interest Bearing Liabilities

2,365,077

8,640

1.45

2,323,210

9,117

1.56

2,381,218

9,497

1.60

2,314,976

8,465

1.47

2,228,641

7,013

1.25

2,346,110

35,719

1.52

2,259,313

22,080

0.98

Other Liabilities

73,130

73,767

72,634

68,295

78,772

71,964

81,842

Total Liabilities

3,761,763

3,729,282

3,800,398

3,727,459

3,724,238

3,754,675

3,848,812

Temporary Equity

6,763

6,443

6,493

7,150

7,423

6,712

8,392

SHAREOWNERS' EQUITY:

491,143

480,137

465,297

456,014

435,116

473,216

421,482

Total Liabilities, Temporary

Equity and

Shareowners' Equity

4,259,669

4,215,862

4,272,188

4,190,623

4,166,777

4,234,603

4,278,686

Interest Rate Spread

41,150

3.59

40,260

3.49

39,334

3.38

38,435

3.43

39,264

3.55

159,179

3.47

159,355

3.63

Interest Income and Rate Earned

(1)

49,790

5.05

49,377

5.06

48,831

4.99

46,900

4.90

46,277

4.80

194,898

5.00

181,435

4.61

Interest Expense and Rate Paid

(2)

8,640

0.88

9,117

0.93

9,497

0.97

8,465

0.88

7,013

0.73

35,719

0.92

22,080

0.56

Net Interest Margin

41,150

4.17

40,260

4.12

39,334

4.02

38,435

4.01

39,264

4.07

159,179

4.08

159,355

4.05

(1)

Interest and average rates are

calculated on a tax-equivalent basis using a 21% Federal tax rate.

(2)

Rate calculated based on average earning assets.