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):

April 27, 2021

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

-K

CURRENT REPORT

Item 2.02.

Results of Operations and Financial Condition.

On April 27, 2021, Capital City Bank Group, Inc. (“CCBG”) issued

an earnings press release reporting CCBG’s

financial

results for the three month period ended March 31,

2021.

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 Exhibit 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 April 27, 2021.

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:

April 27, 2021

By:

/s/ J.Kimbrough Davis

J. Kimbrough Davis,

Executive Vice President

and Chief Financial Officer

EXHIBIT INDEX

Exhibit

Number

Description

99.1

Press release, dated April 27, 2021

exhibit991

Capital City Bank Group, Inc.

Reports First Quarter 2021 Results

TALLAHASSEE,

Fla. (April 27, 2021) –Capital City Bank Group,

Inc. (NASDAQ: CCBG) today reported net income of $9.5

million, or $0.56 per diluted share, for the first quarter

of 2021 compared to net income of $7.7

million, or $0.46 per diluted share,

for the fourth quarter of 2020, and $4.3 million, or

$0.25 per diluted share,

for the first quarter of 2020.

QUARTER HIGHLIGHTS

●

Return on assets of 1.01% and return

on equity of 11.81%

●

Credit quality metrics remained

stable and reduced COVID-19 exposure

drove a negative credit

loss provision of $1.0 million

●

Period-end loan balances grew by $51

million, or 2.6% sequentially

SBA PPP Round 2 originations totaled $65 million through

March 31

SBA PPP Round 1 forgiveness pay

-offs totaled $36 million - $143 million in balances remain

at period-end

SBA PPP deferred fees remaining

at March 31

totaled $5 million ($2

million for Round 1 and $3 million for Round 2)

●

Average deposit bala

nces grew $173 million, or 5.7% sequentially

and reflected stimulus inflows as well as strong

core deposit

growth

●

Noninterest expense declined $0.9

million driven by lower expense for other real

estate and compensation

●

Capital City Home Loans (“CCHL”) contributed $0.09

per share

“I am pleased with our first quarter results,” said William

G. Smith, Jr., Chairman,

President and CEO of Capital City Bank

Group.

“Rising consumer spending, lower unemployment, improving

credit quality and a noticeable increase in loan activity in and

around our markets, are contributing to a stronger economy.

Our core business is performing well.

In addition to round two of the

SBA PPP loans, we experienced solid growth in commercial real

estate and residential loans, culminating in net loan growth of

$51

million, or 2.6% for the quarter.

Wealth management,

mortgage and debit/credit cards performed well.

Expenses declined $0.9

million, or 2% quarter over quarter.

After evaluating our credit risk, we lowered our allowance for credit

losses by $1.8 million, or

8%.

This was based on our current level of problem assets and pandemic

-related extensions, a $0.5 million net recovery for the

quarter and our positive outlook on the economy.

The past year has been challenging.

Our team has responded to every challenge

and we have tweaked our business model,

where appropriate.

While our tactics may change, our strategy remains the

same -- to

produce long-term value for our shareowners.

I am optimistic about our future.”

COVID-19 Update

●

We continue

to closely monitor conditions in our communities.

With case counts trending downward

in most of our markets, we

established a phased plan for safely returning to work beginning

February 1st.

●

On March 1

, all of our banking offices returned to normal banking

hours and lobby services.

●

For the near term, we will continue to maintain

flexible in-office and remote working arrangements

for non-retail associates to

limit building capacity.

●

We are adher

ing to national guidelines and local safety ordinances to protect

both clients and associates.

●

We continue

to support clients with the Small Business Administration Payment

Protection Program (“SBA PPP”) by actively

assisting with the Round 1 forgiveness process and

offering funding for clients eligible in Round

Discussion of Operating Results

Summary Overview

Compared to the fourth quarter of 2020, the $2.0 million

increase in operating profit was attributable to a $2.3

million decrease in the

provision for credit losses and lower noninterest expense

of $0.9 million, partially offset by a $0.7 million

decrease in noninterest

income and lower net interest income of $0.5 million.

Compared to the first quarter of 2020,

the $9.5 million increase in operating profit was attributable to a

$14.3 million increase in

noninterest

income and a lower provision for credit losses of $6.0 million,

partially offset by higher noninterest expense of $9.5

million and lower net interest income of $1.3 million.

This comparison reflects the acquisition of a 51% membership

interest in, and

consolidation of, CCHL on March 1, 2020.

Our return on average assets (“ROA”) was 1.01%

and our return on average equity (“ROE”) was 11

.81%

for the first quarter of

2021.

These metrics were 0.84% and 8.97%

for the fourth quarter of 2020,

respectively, and 0.57%

and 5.20% for the first quarter

of 2020,

respectively.

Net Interest Income/Net Interest

Margin

Tax-equivalent

net interest income for the first quarter of 2021 was $24.6 million

compared to $25.1 million for the fourth quarter of

2020 and $25.9 million for the first quarter of 2020.

The decrease compared to both prior periods reflected lower

rates earned on

investment securities and variable/adjustable rate loans.

The year-over-year decline also reflected lower rates on overnight

funds.

Partially offsetting these declines were higher volumes

of earning assets, including lower yielding SBA PPP loans and

overnight

funds.

The federal funds target rate has remained

in the range of 0.00%-0.25% since March 2020 when the Fed

reduced its overnight rate

by 150 basis points, and as a result, we continue to

experience lower repricing of our variable/adjustable rate earning

assets and

investment securities.

Our overall cost of funds remained low during the first

quarter of 2021 at 0.11%, a decrease of three

basis

points

compared to the fourth quarter of 2020, primarily due to a

reduction in short-term borrowings.

Our net interest margin for the first quarter

of 2021 was 2.85%, a decrease of 15 basis points from

the fourth quarter of 2020 and a

decline of 93 basis points from the first quarter of 2020

The decreases

were primarily attributable to significant growth in overnight

funds which reduced our margin.

Our net interest margin for the first quarter of 2021,

excluding the impact of overnight funds in

excess of $200 million, was 3.45%.

We discuss the effect

of the pandemic related stimulus programs on our balance

sheet in more

detail below under

Discussion of Financial Condition

Provision for Credit Loss

We recorded

a negative provision for credit losses of $1.0 million (consisting of

a negative $2.3 million for HFI loans, partially

offset by a $1.3 million expense for unfunded

loan commitments) for the first quarter of 2021 compared to

provision expense of

$1.3

million for the fourth quarter of 2020 and $5.0 million for the first

quarter of 2020.

The negative provision for the first quarter

of 2021 generally reflected improving economic conditions

and a lower level of expected losses related to COVID-19.

Further, we

recognized net loan recoveries of $0.5 million in the

first quarter of 2021.

We discuss the allowance

for credit losses and COVID-

19 exposure further below.

Noninterest Income and Noninterest

Expense

Noninterest income for the first quarter of 2021 totaled

$29.8 million compared to $30.5 million for the fourth

quarter of 2020 and

$15.5 million for the first quarter of 2020.

The decrease from the fourth quarter of 2020 was due to lower mortgage

banking

revenues of $0.6 million and deposit of $0.4 million, partially

offset by higher bank card fees of $0.2 million

and other income of

$0.1 million.

Compared to the first quarter of 2020, the $14.3 million increase

reflected higher mortgage banking revenues of $13.9

million,

wealth management fees of $0.5 million, and bank card

fees of $0.6 million, partially offset by lower deposit fees of

$0.7

million.

Noninterest expense for the first quarter of 2021 totaled

$40.5 million compared to $41.3 million for the fourth

quarter of 2020 and

$31.0 million for the first quarter of 2020.

The decrease from the fourth quarter of 2020 was primarily attributable

to lower

compensation expense of $0.6 million and other real estate owned

(“OREO”) expense of $0.7 million,

partially offset by higher

other expense of $0.5 million.

Compared to the first quarter of 2020, the $9.5 million

increase reflected expenses added by the

CCHL acquisition as Core CCBG’s

expenses remained flat.

The 51% ownership acquisition of CCHL and consolidation

into CCBG’s financial statements

occurred on March 1, 2020.

The

table below reflects the major components of noninterest

income and noninterest expense for both Core CCBG and CCHL

to help

facilitate a better understanding of the year over year

comparison.

Three Months Ended

Mar 31, 2021

Dec 31, 2020

Mar 31, 2020

(Dollars in thousands)

Core

CCBG

CCHL

Core

CCBG

CCHL

Core

CCBG

CCHL

Deposit Fees

4,271

4,713

5,015

Bank Card Fees

3,618

3,462

3,051

Wealth Management Fees

3,090

3,069

2,604

Mortgage Banking Fees

279

16,846

302

17,409

1,138

2,115

Other

1,296

426

1,205

363

1,459

Total Noninterest Income

12,554

17,272

12,751

17,772

13,267

2,211

Salaries

12,171

10,276

12,384

10,398

13,488

2,242

Other Associate Benefits

3,396

221

3,740

200

3,957

Total Compensation

15,567

10,497

16,124

10,598

17,445

2,291

Occupancy, Net

5,106

861

5,056

920

4,748

231

Other

7,344

1,101

6,899

1,751

5,797

457

Total Noninterest Expense

28,017

12,459

28,079

13,269

27,990

2,979

Income Taxes

We realized income

tax expense of $2.8 million (effective rate of 19

%) for the first quarter of 2021 compared to $2.8 million

(effective rate of 22%) for the fourth quarter

of 2020 and $1.3 million (effective rate of 24%) for the

first quarter of 2020.

Tax

expense for the fourth quarter of 2020 was unfavorably

impacted by a $0.3 million discrete tax expense.

Compared to the first

quarter of 2020, the decrease in our effective

tax rate was attributable to converting CCHL to a partnership for

tax purposes in the

second quarter of 2020.

Absent discrete items, we expect our annual effective

tax rate to approximate 18%-19% in 2021.

Discussion of Financial Condition

Earning Assets

Average earning

assets were $3.498 billion for the first quarter of 2021, an

increase of $160.5 million, or 4.8%, over the fourth

quarter of 2020, and an increase of $746.0 million,

or 27.1%, over the first quarter of 2020.

The increase over both prior periods

was primarily driven by higher deposit balances, which funded

growth in both overnight funds sold and SBA PPP loans.

Deposit

balances increased as a result of strong core deposit growth,

in addition to funding retained at the bank from SBA PPP loans,

and

various other stimulus programs.

We maintained

an average net overnight funds (deposits with banks plus FED funds

sold less FED funds purchased) sold position of

$814.6 million in the first quarter of 2021 compared to

an average net overnight funds sold position of $705.1 million

in the fourth

quarter of 2020 and $234.4 million in the first quarter

of 2020.

The increase compared to both prior periods was driven by strong

core deposit growth, in addition to pandemic related stimulus

programs (see below –

Funding

Average loans

held for investment (HFI) increased $50.9 million, or 2.6%, over

the fourth quarter of 2020 and increased $196.6

million, or 10.6%, over the first quarter of 2020.

Compared to the fourth quarter of 2020, average loan balances

increased across all

loan types except institutional and consumer,

which declined slightly.

Compared to the first quarter of 2020, average loan balances

increased across all loan types except institutional, consumer,

and HELOCs.

Period-end HFI loans increased $51.3 million, or

2.6%, over the fourth quarter of 2020 and increased $195.3

million, or 10.5%, over the first quarter of 2020.

In the first quarter of 2021,

we originated an additional round of SBA PPP loans totaling

$65.4 million (reflected in the commercial

loan category) which averaged $23.7 million for the quarter.

Approximately $256 million in SBA PPP loans have been made

since

the inception of this program.

Through the first quarter of 2021, approximately $47

million in SBA PPP loans have been forgiven

and paid-off ($11 million

in Q4 2020 and $36 million in Q1 2021).

Forgiveness applications are expected to remain strong

over the

next three months for SBA PPP loans funded in 2020,

and then over the course of 2021 for the SBA PPP loans funded in

2021.

SBA PPP loan fee income totaled approximately $1.2

million for the first quarter of 2021.

At March 31, 2021 we had $5.0 million

(net) in deferred SBA PPP loan fees.

Allowance for Credit Losses

At March 31, 2021, the allowance for credit losses for

HFI loans totaled $22.0 million compared to $23.8 million

at December 31,

2020 and $21.1 million at March 31, 2020.

Activity within the allowance is provided on Page 9.

The $1.8 million net decrease in

the allowance for the first quarter of 2021 reflected net loan

recoveries totaling $0.5 million and the release of $2.3 million

reserves which reflected lower expected loan losses related to

COVID-19.

At March 31, 2021, the allowance represented 1.07% of

HFI loans and provided coverage of 411

of nonperforming loans compared to 1.19% and 406%, respectively,

at December 31,

2020 and 1.13%

and 433%, respectively, at

March

31, 2020.

At March 31, 2021, excluding SBA PPP loans

(100% government

guaranteed),

the allowance represented 1.19% of HFI loans compared to

1.30% at December 31, 2020.

Credit Quality/COVID-19 Exposure

Nonperforming assets (nonaccrual loans and OREO) totaled

$5.5 million at March 31, 2021 compared to $6.7 million

at December

31, 2020 and $6.3 million at March 31, 2020.

Nonaccrual loans totaled $5.4 million at March 31, 2021,

a $0.5 million decrease

from December 31, 2020 and a $0.5 million increase

over March 31, 2020.

The balance of OREO totaled $0.1

million at March 31,

2021, a decrease of $0.7 million from December 31, 2020

and a $1.3 million decrease from March 31, 2020.

We continue

to monitor our loan portfolio for segments that continue to be

affected by the pandemic.

To assist our clients, we have

extended loans totaling $333 million of which 75%

were for commercial borrowers and 25% were for consumer

borrowers.

Approximately $328 million, or 98%, of the loan balances associated

with these borrowers have resumed making regularly

scheduled payments

of which loan balances totaling $2.9 million were over 30 days

delinquent and an additional $0.6 million was

on nonaccrual status at March 31, 2021.

Of the $5 million that remains on extension, no loans were classified

at March 31, 2021.

Funding (Deposits/Debt)

Average total

deposits were $3.240 billion for the first quarter of 2021, an

increase of $173.4 million, or 5.7%, over the fourth

quarter of 2020 and $686.8 million, or 26.9%, over

the first quarter of 2020.

Average core deposit

grew $546.8 million over the

first quarter of 2020, which includes $342.9 million in

noninterest bearing deposits and $113.0

million in savings account balances.

In addition, average public fund deposits grew $121

million during this period.

Over the past 12 months, multiple government

stimulus programs have been implemented, including the

CARES Act and the American Rescue Plan Act, which are responsible for

a large part of the growth in average deposits. Given

these increases, the potential exists for our deposit levels to be volatile

throughout 2021 due to the uncertain timing of the outflows

of the stimulus related balances and the economic recovery.

It is

anticipated that current liquidity levels will remain robust

due to our strong overnight funds sold position.

The Bank continues to

strategically consider ways to safely deploy a portion

of this liquidity.

Average short

-term borrowings decreased $29.2 million over the fourth quarter

of 2020 and increased $30.5 million over the first

quarter of 2020,

which reflected a seasonal fluctuation in warehouse line

borrowing needs to support CCHL’s

loans held for sale.

Capital

Shareowners’ equity was $324.4 million at March

31, 2021 compared to $320.8 million at December 31, 2020

and $328.5 million at

March 31, 2020.

During the first quarter of 2021, shareowners’ equity was positively

impacted by net income of $9.5 million, a

$1.6 million increase in fair value of the interest rate swap

related to subordinated debt,

net adjustments totaling $0.3 million related

to transactions under our stock compensation plans, stock

compensation accretion of $0.2 million,

and a $0.1 million decrease in the

accumulated other comprehensive loss for our pension

plan.

Shareowners’ equity was reduced by a common stock dividend

of $2.5

million ($0.15 per share), reclassification of $4.2 million

to temporary equity to increase the redemption value of the

non-

controlling interest in CCHL, and a $1.4 million decrease

in the unrealized gain on investment securities.

At March 31, 2021, our total risk-based capital ratio

was 17.20%

compared to 17.30%

at December 31, 2020 and 17.19% at March

31, 2020.

Our common equity tier 1 capital ratio was 13.63%, 13.71%, and 13.55%,

respectively, on these dates.

Our leverage ratio

was 8.97%, 9.33%, and 10.81%, respectively,

on these dates.

All of our regulatory capital ratios exceeded the threshold to

designated as “well-capitalized” under the Basel III

capital standards.

Further, our tangible common equity ratio

was 6.13%

March 31, 2021 compared to 6.25%

and 7.98%

at December 31, 2020 and March 31, 2020, respectively.

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 $3.9 billion in assets.

We provide

a full range of banking services, including traditional deposit

and credit services, mortgage banking, asset management,

trust, merchant services, bankcards and securities brokerage services.

Our bank subsidiary,

Capital City Bank, was founded in 1895 and now has 57 banking offices

and 85 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 following factors, among others, could cause our actual results to

differ: the magnitude and duration of the COVID-19

pandemic and its impact on the global economy and financial

market conditions

and our business, results of operations and financial condition,

including the impact of our participation in government programs

related to COVID-19; the accuracy of the our financial

statement estimates and assumptions; legislative or regulatory

changes;

fluctuations in inflation, interest rates, or monetary policies;

the effects of security breaches and computer

viruses that may affect our

computer systems or fraud related to debit card products; changes

in consumer spending and savings habits; our growth and

profitability; the strength of the U.S. economy and the

local economies where we conduct operations; the effects

of a non-diversified

loan portfolio, including the risks of geographic and

industry concentrations; natural disasters, widespread health

emergencies,

military conflict, terrorism or other geopolitical events; 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; 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 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, 2020,

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.

USE OF NON-GAAP FINANCIAL MEASURES

We present a

tangible common equity ratio and a tangible book value per

diluted share that removes the effect of goodwill resulting

from merger and acquisition activity.

We 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)

Mar 31, 2021

Dec 31, 2020

Sep 30, 2020

Jun 30, 2020

Mar 31, 2020

Shareowners' Equity (GAAP)

324,426

320,837

339,425

335,057

328,507

Less: Goodwill (GAAP)

89,095

89,275

Tangible Shareowners' Equity (non-GAAP)

235,331

231,742

250,330

245,962

239,232

Total Assets (GAAP)

3,929,884

3,798,071

3,587,041

3,499,524

3,086,523

Less: Goodwill (GAAP)

89,095

89,275

Tangible Assets (non-GAAP)

3,840,789

3,708,976

3,497,946

3,410,429

2,997,248

Tangible Common Equity Ratio (non-GAAP)

A/B

6.13%

6.25%

7.16%

7.21%

7.98%

Actual Diluted Shares Outstanding (GAAP)

16,875,719

16,844,997

16,800,563

16,821,743

16,845,462

Tangible Book Value

per Diluted Share (non-GAAP)

A/C

13.94

13.76

14.90

14.62

14.20

CAPITAL CITY BANK

GROUP,

INC.

EARNINGS HIGHLIGHTS

Unaudited

Three Months Ended

(Dollars in thousands, except per share data)

Mar 31, 2021

Dec 31, 2020

Mar 31, 2020

EARNINGS

Net Income Attributable to Common Shareowners

9,506

7,746

4,287

Diluted Net Income Per Share

0.56

0.46

0.25

PERFORMANCE

Return on Average Assets

1.01

0.84

0.57

Return on Average Equity

11.81

8.97

5.20

Net Interest Margin

2.85

3.00

3.78

Noninterest Income as % of Operating Revenue

54.90

55.00

37.52

Efficiency Ratio

74.36

74.89

CAPITAL ADEQUACY

Tier 1 Capital

16.08

16.19

16.12

Total Capital

17.20

17.30

17.19

Leverage

8.97

9.33

10.81

Common Equity Tier 1

13.63

13.71

13.55

Tangible Common Equity

(1)

6.13

6.25

7.98

Equity to Assets

8.26

8.45

10.64

ASSET QUALITY

Allowance as % of Non-Performing Loans

410.78

405.66

432.61

Allowance as a % of Loans HFI

1.07

1.19

1.13

Net Charge-Offs as % of Average Loans

HFI

(0.10)

0.09

0.23

Nonperforming Assets as % of Loans HFI and OREO

0.27

0.33

0.34

Nonperforming Assets as % of Total Assets

0.14

0.18

0.21

STOCK PERFORMANCE

High

28.98

26.35

30.62

Low

21.42

18.14

15.61

26.02

24.58

20.12

Average Daily Trading

Volume

30,303

22,271

40,536

(1)

Tangible common equity ratio is a non-GAAP financial measure.

For additional information, including a reconciliation to GAAP, refer to

Page 5.

CAPITAL CITY BANK GROUP, INC.

CONSOLIDATED STATEMENT

OF FINANCIAL CONDITION

Unaudited

2021

2020

(Dollars in thousands)

First Quarter

Fourth Quarter

Third Quarter

Second Quarter

First Quarter

ASSETS

Cash and Due From Banks

73,973

67,919

76,509

75,155

72,676

Funds Sold and Interest Bearing Deposits

851,910

860,630

626,104

513,273

196,936

Total Cash and Cash Equivalents

925,883

928,549

702,613

588,428

269,612

Investment Securities Available for Sale

406,245

324,870

328,253

341,180

382,514

Investment Securities Held to Maturity

199,109

169,939

202,593

232,178

251,792

Total Investment Securities

605,354

494,809

530,846

573,358

634,306

Loans Held for Sale ("HFS")

82,081

114,039

116,561

76,610

82,598

Loans Held for Investment ("HFI"):

Commercial, Financial, & Agricultural

413,819

393,930

402,997

421,270

249,020

Real Estate - Construction

138,104

135,831

125,804

117,794

122,595

Real Estate - Commercial

669,158

648,393

656,064

662,434

656,084

Real Estate - Residential

358,849

342,664

335,713

353,831

354,150

Real Estate - Home Equity

202,099

205,479

197,363

194,479

196,443

Consumer

267,666

269,520

268,393

266,417

275,982

Other Loans

7,082

9,879

10,488

4,883

6,580

Overdrafts

950

730

1,339

1,069

1,533

Total Loans Held for Investment

2,057,727

2,006,426

1,998,161

2,022,177

1,862,387

Allowance for Credit Losses

(22,026)

(23,816)

(23,137)

(22,457)

(21,083)

Loans Held for Investment, Net

2,035,701

1,982,610

1,975,024

1,999,720

1,841,304

Premises and Equipment, Net

86,370

86,791

87,192

87,972

87,684

Goodwill

89,095

89,275

Other Real Estate Owned

110

808

1,227

1,059

1,463

Other Assets

105,290

101,370

84,483

83,282

80,281

Total Other Assets

280,865

278,064

261,997

261,408

258,703

Total Assets

3,929,884

3,798,071

3,587,041

3,499,524

3,086,523

LIABILITIES

Deposits:

Noninterest Bearing Deposits

1,473,891

1,328,809

1,378,314

1,377,033

1,066,607

NOW Accounts

993,571

1,046,408

827,506

808,244

779,467

Money Market Accounts

269,041

266,649

247,823

240,754

210,124

Regular Savings Accounts

518,373

474,100

451,944

423,924

384,480

Certificates of Deposit

103,232

101,594

103,859

105,041

104,907

Total Deposits

3,358,108

3,217,560

3,009,446

2,954,996

2,545,585

Short-Term Borrowings

55,687

79,654

90,936

63,958

76,516

Subordinated Notes Payable

52,887

Other Long-Term Borrowings

1,829

3,057

5,268

5,583

5,896

Other Liabilities

109,487

102,076

71,880

75,702

70,044

Total Liabilities

3,577,998

3,455,234

3,230,417

3,153,126

2,750,928

Temporary Equity

27,460

22,000

17,199

11,341

7,088

SHAREOWNERS' EQUITY

Common Stock

169

168

Additional Paid-In Capital

32,804

32,283

31,425

31,575

32,100

Retained Earnings

335,324

332,528

333,545

328,570

321,772

Accumulated Other Comprehensive Loss, Net of Tax

(43,871)

(44,142)

(25,713)

(25,256)

(25,533)

Total Shareowners' Equity

324,426

320,837

339,425

335,057

328,507

Total Liabilities, Temporary Equity and Shareowners' Equity

3,929,884

3,798,071

3,587,041

3,499,524

3,086,523

OTHER BALANCE SHEET DATA

Earning Assets

3,597,071

3,475,904

3,271,672

3,185,418

2,776,228

Interest Bearing Liabilities

1,994,620

2,024,349

1,780,223

1,700,391

1,614,277

Book Value Per Diluted Share

19.22

19.05

20.20

19.92

19.50

Tangible Book Value

Per Diluted Share

(1)

13.94

13.76

14.90

14.62

14.20

Actual Basic Shares Outstanding

16,852

16,791

16,761

16,780

16,812

Actual Diluted Shares Outstanding

16,876

16,845

16,801

16,822

16,845

(1)

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

For additional information, including a reconciliation to GAAP, refer to Page 5.

CAPITAL CITY BANK

GROUP,

INC.

CONSOLIDATED STATEMENT

OF OPERATIONS

Unaudited

2021

2020

(Dollars in thousands, except per share data)

First

Quarter

Fourth

Quarter

Third

Quarter

Second

Quarter

First

Quarter

INTEREST INCOME

Interest and Fees on Loans

23,350

23,878

23,594

23,687

23,593

Investment Securities

1,883

2,096

2,426

2,737

3,015

Funds Sold

213

180

146

757

Total Interest Income

25,446

26,154

26,166

26,512

27,365

INTEREST EXPENSE

Deposits

208

201

190

218

939

Short-Term Borrowings

412

639

498

421

132

Subordinated Notes Payable

307

311

316

374

471

Other Long-Term Borrowings

Total Interest Expense

948

1,181

1,044

1,054

1,592

Net Interest Income

24,498

24,973

25,122

25,458

25,773

Provision for Credit Losses

(982)

1,342

1,308

2,005

4,990

Net Interest Income after Provision for Credit Losses

25,480

23,631

23,814

23,453

20,783

NONINTEREST INCOME

Deposit Fees

4,271

4,713

4,316

3,756

5,015

Bank Card Fees

3,618

3,462

3,389

3,142

3,051

Wealth Management Fees

3,090

3,069

2,808

2,554

2,604

Mortgage Banking Revenues

17,125

17,711

22,983

19,397

3,253

Other

1,722

1,568

1,469

1,350

1,555

Total Noninterest Income

29,826

30,523

34,965

30,199

15,478

NONINTEREST EXPENSE

Compensation

26,064

26,722

26,164

23,658

19,736

Occupancy, Net

5,967

5,976

5,906

5,798

4,979

Other Real Estate, Net

(118)

567

219

116

(798)

Other

8,563

8,083

8,053

7,731

7,052

Total Noninterest Expense

40,476

41,348

40,342

37,303

30,969

OPERATING PROFIT

14,830

12,806

18,437

16,349

5,292

Income Tax Expense

2,787

2,833

3,165

2,950

1,282

Net Income

12,043

9,973

15,272

13,399

4,010

Pre-Tax Income Attributable to Noncontrolling Interest

(2,537)

(2,227)

(4,875)

(4,253)

277

NET INCOME ATTRIBUTABLE

TO COMMON SHAREOWNERS

9,506

7,746

10,397

9,146

4,287

PER COMMON SHARE

Basic Net Income

0.56

0.46

0.62

0.55

0.25

Diluted Net Income

0.56

0.46

0.62

0.55

0.25

Cash Dividend

0.15

0.14

AVERAGE

Basic

16,838

16,763

16,771

16,797

16,808

Diluted

16,862

16,817

16,810

16,839

16,842

CAPITAL CITY BANK GROUP,

INC.

ALLOWANCE FOR CREDIT LOSSES

("ACL")

AND RISK ELEMENT ASSETS

Unaudited

2021

2020

(Dollars in thousands, except per share data)

First

Quarter

Fourth

Quarter

Third

Quarter

Second

Quarter

First

Quarter

ACL - HELD FOR INVESTMENT

Balance at Beginning of Period

23,816

23,137

22,457

21,083

13,905

Impact of Adopting ASC 326 (CECL)

3,269

Provision for Credit Losses

(2,312)

1,165

1,265

1,615

4,990

Net Charge-Offs

(522)

486

585

241

1,081

Balance at End of Period

22,026

23,816

23,137

22,457

21,083

As a % of Loans HFI

1.07%

1.19%

1.16%

1.11%

1.13%

As a % of Nonperforming Loans

410.78%

405.66%

420.30%

322.37%

432.61%

ACL - UNFUNDED COMMITMENTS

Balance at Beginning of Period

1,644

1,467

1,424

1,033

157

Impact of Adopting ASC 326 (CECL)

876

Provision for Credit Losses

1,330

177

391

Balance at End of Period

(1)

2,974

1,644

1,467

1,424

1,033

CHARGE-OFFS

Commercial, Financial and Agricultural

104

137

186

362

Real Estate - Commercial

Real Estate - Residential

110

Real Estate - Home Equity

Consumer

564

668

619

634

864

Overdrafts

492

564

450

541

702

Total Charge-Offs

1,136

1,384

1,282

1,414

2,080

RECOVERIES

Commercial, Financial and Agricultural

136

Real Estate - Construction

Real Estate - Commercial

645

191

Real Estate - Residential

153

Real Estate - Home Equity

124

Consumer

311

306

280

365

268

Overdrafts

367

258

237

549

427

Total Recoveries

1,658

898

697

1,173

999

NET CHARGE-OFFS

(522)

486

585

241

1,081

Net Charge-Offs as a % of Average

Loans HFI

(2)

(0.10)%

0.09%

0.11%

0.05%

0.23%

RISK ELEMENT ASSETS

Nonaccruing Loans

5,362

5,871

5,505

6,966

4,874

Other Real Estate Owned

110

808

1,227

1,059

1,463

Total Nonperforming Assets ("NPAs")

5,472

6,679

6,732

8,025

6,337

Past Due Loans 30-89 Days

2,622

4,594

3,191

2,948

5,077

Classified Loans

20,608

17,631

16,772

17,091

16,548

Performing Troubled Debt Restructuring's

13,597

13,887

14,693

15,133

15,934

Nonperforming Loans as a % of Loans HFI

0.26%

0.29%

0.28%

0.34%

0.26%

NPAs as a % of Loans HFI and Other Real Estate

0.27%

0.33%

0.34%

0.40%

0.34%

NPAs as a % of

Total Assets

0.14%

0.18%

0.19%

0.23%

0.21%

(1)

Recorded in other liabilities

(2)

Annualized

CAPITAL CITY BANK GROUP,

INC.

AVERAGE

BALANCE AND INTEREST RATES

Unaudited

First Quarter 2021

Fourth Quarter 2020

Third Quarter 2020

Second Quarter 2020

First Quarter 2020

(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

ASSETS:

Loans Held for Sale

106,242

970

3.70

121,052

878

3.85

92,522

671

3.64

74,965

550

3.41

34,923

210

2.64

Loans Held for Investment

(1)

2,044,363

22,483

4.46

1,993,470

23,103

4.55

2,005,178

23,027

4.53

1,982,960

23,235

4.70

1,847,780

23,482

5.11

Investment Securities

Taxable Investment Securities

528,842

1,863

1.41

513,277

2,072

1.61

553,395

2,401

1.73

601,509

2,708

1.80

629,512

2,995

1.91

Tax-Exempt Investment Securities

(1)

3,844

2.61

4,485

2.71

4,860

2.66

5,865

2.51

5,293

1.86

Total Investment Securities

532,686

1,888

1.42

517,762

2,102

1.62

558,255

2,433

1.74

607,374

2,745

1.81

634,805

3,020

1.91

Funds Sold

814,638

214

0.11

705,125

180

0.10

567,883

146

0.10

351,473

0.10

234,372

757

1.30

Total Earning Assets

3,497,929

25,555

2.96

3,337,409

26,263

3.14

3,223,838

26,277

3.25

3,016,772

26,618

3.55

2,751,880

27,469

4.01

Cash and Due From Banks

68,978

73,968

69,893

72,647

56,958

Allowance for Loan Losses

(24,128)

(23,725)

(22,948)

(21,642)

(14,389)

Other Assets

278,742

264,784

268,549

261,449

244,339

Total Assets

3,821,521

3,652,436

3,539,332

3,329,226

3,038,788

LIABILITIES:

Interest Bearing Deposits

NOW Accounts

985,517

0.03

879,564

0.03

826,776

0.03

789,378

0.04

808,811

725

0.36

Money Market Accounts

269,829

0.05

261,543

0.05

247,185

0.05

222,377

0.07

212,211

117

0.22

Savings Accounts

492,252

0.05

466,116

0.05

438,762

0.05

409,366

0.05

379,237

0.05

Time Deposits

102,089

0.15

102,809

0.17

104,522

0.16

104,718

0.19

105,542

0.19

Total Interest Bearing Deposits

1,849,687

208

0.05

1,710,032

201

0.05

1,617,245

190

0.05

1,525,839

218

0.06

1,505,801

939

0.25

Short-Term Borrowings

67,033

412

2.49

95,280

639

2.67

74,557

498

2.66

73,377

421

2.31

32,915

132

1.61

Subordinated Notes Payable

52,887

307

2.32

52,887

311

2.30

52,887

316

2.34

52,887

374

2.80

52,887

471

3.52

Other Long-Term Borrowings

2,736

3.18

3,700

3.18

5,453

2.91

5,766

2.84

6,312

3.21

Total Interest Bearing Liabilities

1,972,343

948

0.19

1,861,899

1,181

0.25

1,750,142

1,044

0.24

1,657,869

1,054

0.26

1,597,915

1,592

0.40

Noninterest Bearing Deposits

1,389,821

1,356,104

1,354,032

1,257,614

1,046,889

Other Liabilities

111,050

74,605

83,192

72,073

59,587

Total Liabilities

3,473,214

3,292,608

3,187,366

2,987,556

2,704,391

Temporary Equity

21,977

16,154

11,893

8,155

2,506

SHAREOWNERS' EQUITY:

326,330

343,674

340,073

333,515

331,891

Total Liabilities, Temporary

Equity and Shareowners' Equity

3,821,521

3,652,436

3,539,332

3,329,226

3,038,788

Interest Rate Spread

24,607

2.77

25,082

2.88

25,233

3.01

25,564

3.30

25,877

3.61

Interest Income and Rate Earned

(1)

25,555

2.96

26,263

3.14

26,277

3.25

26,618

3.55

27,469

4.01

Interest Expense and Rate Paid

(2)

948

0.11

1,181

0.14

1,044

0.13

1,054

0.14

1,592

0.23

Net Interest Margin

24,607

2.85

25,082

3.00

25,233

3.12

25,564

3.41

25,877

3.78

(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.