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 21, 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 April 21, 2025, Capital City Bank Group, Inc. (“CCBG”) issued an earnings press release

reporting CCBG’s financial

results for the three month period ended March 31, 2025.

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 April 21, 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:

April 21, 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 April 21, 2025

104

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

ex991

Capital City Bank Group, Inc.

Reports First Quarter 2025 Results

TALLAHASSEE, Fla.

(April 21, 2025) – Capital City Bank Group, Inc. (NASDAQ: CCBG) today

reported net income attributable

to common shareowners of $16.9 million, or $0.99 per diluted share, for the first

quarter of 2025

compared to $13.1 million, or $0.77

per diluted share, for the fourth quarter of 2024, and $12.6 million, or $0.

74 per diluted share, for the first quarter of 2024.

QUARTER HIGHLIGHTS (1

Quarter 2025

versus 4

Quarter 2024)

Income Statement

●

Tax-equivalent

net interest income totaled $41.6 million compared

to $41.2 million for the prior quarter

Net interest margin increased

five basis points to 4.22% (earning asset yield up one basis point and

total deposit cost down

four basis points to 82 basis points)

●

Improved credit

quality metrics - net loan charge-offs were

nine basis points (annualized) of average loans – allowance coverage

ratio increased to 1.12% at March

31, 2025

●

Noninterest income increased

$1.1 million, or 6.1%, and reflected a $0.7

million increase in mortgage banking revenues

and a

$0.5 million increase in wealth management

fees

●

Noninterest expense decreased

$3.1 million, or 7.4%, primarily due to a $3.1 million decrease

in other expense which included a

higher level of gains from the sale of banking

facilities, namely the sale of our operations center building in the first quarter

Balance Sheet

●

Loan balances decreased $11.5

million, or 0.4% (average), and increased $9.2

million, or 0.4% (end of period)

●

Deposit balances increased by $65.1 million,

or 1.8% (average), and increased $111.9

million, or 3.0% (end of period), largely

due to the seasonal increase in our public fund balances

●

Tangible

book value per diluted share (non-GAAP financial measure)

increased $0.94, or 4.0%

"I am pleased with our first quarter performance, which reflects strong core fundamentals

and strategic execution driven by a 2.6%

increase in revenues, solid growth in deposit balances, and improvement in

credit quality metrics,” said William G. Smith,

Jr.,

Capital City Bank Group Chairman, President, and CEO. “First quarter

earnings also included a $0.17 per diluted share gain from

the sale of our operations center building.

Our strong balance sheet and revenue diversification provides us with the flexibility to

navigate ongoing uncertainty in market and economic conditions."

Discussion of Operating Results

Net Interest Income/Net Interest

Margin

Tax-equivalent net

interest income for the first quarter of 2025 totaled $41.6 million, compared to $41.2 million

for the fourth

quarter of 2024, and $38.4 million for the first quarter of 2024.

Compared to both prior periods, the increase was driven by 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 average loan balances

and interest rates.

Two less calendar days also

contributed

to the decline in loan interest compared to the fourth quarter of 2024.

Higher overnight funds interest also contributed to the increase

over the first quarter of 2024 reflective of a higher level of average

earning assets.

Our net interest margin for the first quarter of 2025 was 4.22%, an

increase of five basis points over the fourth quarter of 2024

and

an increase of 21 basis points over the first quarter of 2024.

For the month of March 2025, our net interest margin was 4.22%.

The

increase in net interest margin over the fourth quarter of

2024 reflected a higher yield in the investment portfolio driven by new

purchases during the quarter and a lower cost of deposits, partially offset

by a lower overnight funds rate. The increase over the first

quarter of 2024 reflected favorable investment repricing,

a lower cost of deposits, and a higher overnight funds rate, partially offset

by lower average loan balances for both prior periods.

For the first quarter of 2025, our cost of funds was 84 basis points, a decrease

of four basis points from the fourth quarter of 2024

and the first quarter of 2024.

Our cost of deposits (including noninterest bearing

accounts) was 82 basis points, 86 basis points, and 85 basis points, respectively,

for the same periods.

Provision for Credit Losses

We recorded

a provision expense for credit losses of $0.8 million for the first quarter of 2025 compared

to $0.7 million for the

fourth quarter of 2024 and $0.9 million for the first quarter of 2024.

For the first quarter of 2025, we recorded a provision expense

of $1.1 million for loans held for investment (“HFI”) and a provision

benefit of $0.3 million for unfunded loan commitments, which

was comparable to the fourth quarter of 2024.

We discuss the various

factors that impacted our provision expense in detail below

under the heading Allowance for Credit Losses.

Noninterest Income and Noninterest

Expense

Noninterest income for the first quarter of 2025

totaled $19.9 million compared to $18.8 million for the fourth quarter of

2024 and

$18.1 million for the first quarter of 2024.

The $1.1 million, or 6.1%, increase over the fourth quarter of 2024 was primarily

due to

a $0.7 million increase in mortgage banking revenues and a $0.5 million increase

in wealth management fees, partially offset by a

$0.1 million decrease in deposits fees.

The increase in mortgage revenues was driven by an increase in

rate locks and a higher gain

on sale margin.

The increase in wealth management fees was attributable to a $0.5 million increase in

insurance commission

revenue.

Compared to the first quarter of 2024, the $1.8 million, or 10.0%, increase was driven

by a $1.1 million increase in wealth

management fees and a $0.9 million increase in mortgage banking revenues

partially offset by a $0.2 million decrease in deposit

fees.

The increase in wealth management fees reflected higher retail brokerage

fees of $0.6 million, insurance commission revenue

of $0.3 million, and trust fees of $0.2 million.

The increase in mortgage revenues was driven by an increase in loan fundings and

higher gain on sale margin.

Noninterest expense for the first quarter of 2025

totaled $38.7 million compared to $41.8 million for the fourth quarter of

2024 and

$40.2 million for the first quarter of 2024.

The $3.1 million, or 7.4%, decrease from the fourth quarter of 2024, reflected

a $3.1

million decrease in other expense, a $0.1 million decrease in occupancy expense,

and a $0.1 million increase in compensation

expense.

The decrease in other expense was driven by a $3.5 million decrease in other real estate expense which

reflected higher

gains from the sale of banking facilities, primarily the sale of our operations center

building in the first quarter of 2025, partially

offset by a $0.5 million increase in charitable contribution expense.

The slight decrease in occupancy expense was due to lower

maintenance/repairs for buildings and furniture/fixtures.

The slight net decrease in compensation expense reflected a $0.2 million

increase in salary expense offset by a $0.1 million decrease in associate benefit

expense.

Income Taxes

We realized income

tax expense of $5.1 million (effective rate of 23.3%) for the

first quarter of 2025 compared to $4.2

million

(effective rate of 24.3%) for the fourth quarter of 2024

and $3.5 million (effective rate of 23.0%) for the first quarter of

2024.

Compared to the fourth quarter of 2024, the decrease in our effective

tax rate was primarily due to a discrete item in the first quarter

of 2025 related to an excess tax benefit for stock compensation.

Absent discrete items, we expect our annual effective tax rate to

approximate 24% for 2025.

Discussion of Financial Condition

Earning Assets

Average earning

assets totaled $3.994 billion for the first quarter of 2025, an increase of $72.0 million, or

1.8%, over the fourth

quarter of 2024, and an increase of $144.3 million, or 3.7%, over

the first quarter of 2024.

The increase over both prior periods was

driven by higher deposit balances (see below –

Deposits

Compared to the fourth quarter of 2024, the change in the earning asset

mix reflected a $67.1 million increase in investment securities and a $22.7

million increase in overnight funds sold partially offset

by a $11.5 million decrease in loans HFI and a $6.3 million

decrease in loans held for sale (“HFS”).

Compared to the first quarter

of 2024, the change in the earning asset mix reflected a $180.5 million increase in overnight

funds and a $29.1 million increase in

investment securities that was partially offset by a $62.7 million

decrease in loans HFI and a $2.6 million decrease in HFS.

Average loans

HFI decreased $11.5 million, or 0.4%, from the fourth

quarter of 2024 and decreased $62.7 million, or 2.3%, from

the first quarter of 2024.

Compared to the fourth quarter of 2024, the decrease was primarily attributable

to declines in construction

loans of $8.6 million, commercial loans of $5.7 million, and consumer

loans of $2.1 million, partially offset by a $6.6 million

increase in home equity loans.

Compared to the first quarter of 2024, the decline was driven by decreases in consumer

loans

(primarily indirect auto) of $58.8 million, commercial loans of $32.9 million,

and commercial real estate mortgage loans of $23.1

million, partially offset by increases in residential real

estate loans of $28.9 million, construction loans of $11.5

million, and home

equity loans of $10.4 million.

Loans HFI at March 31, 2025 increased $9.2 million, or 0.3%, over December

31, 2024 and decreased $70.4 million, or 2.6%, from

March 31, 2024.

Compared to December 31, 2024, the increase was primarily attributable to increases in

commercial real estate

mortgage loans of $27.8 million and residential real estate loans of $12.1 million,

consumer loans (primarily indirect auto) of $6.7

million, and home equity loans of $5.9 million, partially offset

by decreases in construction loans of $27.7 million, commercial

loans of $4.8 million, and other loans of $10.8 million.

Compared to the first quarter of 2024, the decline was driven by decreases

in consumer loans (primarily indirect auto) of $48.0 million, commercial

loans of $33.9 million, commercial real estate mortgage

loans of $16.7 million, and construction loans of $10.4 million,

partially offset by increases in residential real estate loans of $27.8

million and home equity loans of $11.4 million.

Allowance for Credit Losses

At March 31, 2025, the allowance for credit losses for loans HFI totaled

$29.7 million compared to $29.3 million at December 31,

2024

and $29.3 million at March 31, 2024.

Activity within the allowance is provided on Page 9.

The increase in the allowance

over December 31, 2024 reflected higher loan balances and higher

loan loss rates, partially offset by a lower level of net loan

charge-offs.

The increase in the allowance over March 31, 2024 was primarily due to higher loss rates. Net

loan charge-offs were

nine basis points of average loans for the first quarter of 2025

versus 25 basis points for the fourth quarter of 2024 and 22 basis

points for the first quarter of 2024.

At March 31, 2025, the allowance represented 1.12% of loans HFI compared to 1.10% at

December 31, 2024, and 1.07% at March 31, 2024.

Credit Quality

Nonperforming assets (nonaccrual loans and other real estate) totaled

$4.4 million at March 31, 2025 compared to $6.7 million at

December 31, 2024 and $6.8 million at March 31, 2024.

At March 31, 2025, nonperforming assets as a percent of total assets was

0.10%, compared to 0.15% at December 31, 2024 and 0.16% at March 31,

2024.

Nonaccrual loans totaled $4.3 million at March

31, 2025, a $2.0 million decrease from December 31, 2024 and a $2.5

million decrease from March 31, 2024.

Further, classified

loans totaled $19.2 million at March 31, 2025, a $0.7 million decrease from

December 31, 2024

and a $3.1 million decrease from

March 31, 2024.

Deposits

Average total

deposits were $3.665 billion for the first quarter of 2025, an increase of $65.1 million,

or 1.8%, over the fourth quarter

of 2024 and an increase of $89.0 million, or 2.5%, over the first quarter

of 2024.

Compared to the fourth quarter of 2024, the

increase was primarily attributable to higher NOW account balances largely

due to the seasonal increase in our public fund

balances.

The increase over the first quarter of 2024

reflected growth in NOW,

money market and certificate of deposit account

balances which was mainly due to a combination of balances migrating from

savings and noninterest bearing accounts,

in addition

to receiving new deposits from existing and new clients via various deposit strategies.

At March 31, 2025, total deposits were $3.784 billion, an increase of $111.9

million, or 3.0%, over December 31, 2024, and an

increase of $129.1 million, or 3.5%, over March 31, 2024.

The increase over December 31, 2024 was due to higher balances in all

deposit categories. The increase over March 31, 2024

was primarily due to higher NOW account balances, largely due

to the

seasonal increase in public funds and increases in money market and

certificates of deposit, partially offset by lower savings account

balances.

Total public funds balances were

$648.0

million at March 31, 2025, $660.9 million at December 31, 2024, and $615.0

million at March 31, 2024.

Liquidity

The Bank maintained an average net overnight funds (i.e., deposits with banks

plus FED funds sold less FED funds purchased) sold

position of $320.9 million in the first quarter of 2025

compared to $298.3 million in the fourth quarter of 2024 and $140.5 million in

the first quarter of 2024.

Compared to both prior periods,

the increase reflected higher average deposits (primarily seasonal public

funds) and lower average loans.

At March 31, 2025, we had the ability to generate approximately $1.

540 billion (excludes overnight funds position of $446 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 as we have the option to pledge securities in

our portfolio as collateral

for borrowings or deposits, and/or to sell selected securities in our portfolio

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

Treasury,

U.S. governmental agencies, municipal governments, and corporate

entities.

At March 31, 2025, the weighted-average

maturity and duration of our portfolio were 2.64 years and 2.10 years

respectively, and the available

-for-sale portfolio had a net

unrealized after-tax loss of $15.4 million.

Capital

Shareowners’ equity was $512.6 million at March 31, 2025 compared

to $495.3 million at December 31, 2024 and $448.3 million at

March 31, 2024.

For the first three months of 2025, shareowners’ equity was positively impacted by

net income attributable to

shareowners of $16.9 million, a net $3.6 million decrease in the accumulated

other comprehensive loss, the issuance of stock of $2.4

million, and stock compensation accretion of $0.4 million.

The net favorable change in accumulated other comprehensive loss

reflected a $4.1 million decrease in the investment securities loss that was partially offset

by a $0.5 million decrease in the fair value

of the interest rate swap related to subordinated debt. Shareowners’ equity

was reduced by a common stock dividend of $4.1 million

($0.24 per share) and net adjustments totaling $1.9 million related to transactions

under our stock compensation plans.

At March 31, 2025, our total risk-based capital ratio was 19.20% compared

to 18.64% at December 31, 2024 and 16.84% at March

31, 2024.

Our common equity tier 1 capital ratio was 16.08%, 15.54%, and 13.82%, respectively,

on these dates.

Our leverage ratio

was 11.17%, 11.05

%, and 10.45%, respectively,

on these dates.

At March 31, 2025, 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

(non-GAAP financial measure) was 9.61% at March 31, 2025 compared to 9.51% and

8.53% at December 31, 2024 and March 31,

2024, respectively.

If our unrealized held-to-maturity securities losses of $12.1

million (after-tax) were recognized in accumulated

other comprehensive loss, our adjusted tangible capital ratio would be

9.33%.

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 $4.5

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 62 banking offices and 105 ATM

s/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: the effects of and changes

in trade and monetary and fiscal policies and laws, including the interest rate policies of

the Federal Reserve Board; inflation,

interest rate, market and monetary fluctuations; local, regional, national, and international

economic conditions and the impact they

may have on us and our clients and our assessment of that impact; the costs and

effects of legal and regulatory developments, the

outcomes of legal proceedings or regulatory or other governmental inquiries,

the results of regulatory examinations or reviews and

the ability to obtain required regulatory approvals; the effect of

changes in laws and regulations (including laws and regulations

concerning taxes, banking, securities, and insurance) and their application

with which we and our subsidiaries must comply; the

effect of changes in accounting policies and practices, as may

be adopted by the regulatory agencies, as well as other accounting

standard setters; the accuracy of our financial statement estimates and assumptions;

changes in the financial performance and/or

condition of our borrowers; changes in the mix of loan geographies, sectors and

types or the level of non-performing assets and

charge-offs; changes in estimates of future credit

loss reserve requirements based upon the periodic review thereof under relevant

regulatory and accounting requirements; changes in our liquidity position;

the timely development and acceptance of new products

and services and perceived overall value of these products and services by users;

changes in consumer spending, borrowing, and

saving habits; greater than expected costs or difficulties related to the

integration of new products and lines of business;

technological changes; the cost and effects of cyber incidents or

other failures, interruptions, or security breaches of our

systems or

those of our customers or third-party providers; acquisitions and integration

of acquired businesses; impairment of our goodwill or

other intangible assets; changes in the reliability of our vendors, internal

control systems, or information systems; our ability to

increase market share and control expenses; our ability to attract and retain qualified

employees; changes in our organization,

compensation, and benefit plans; the soundness of other financial institutions;

volatility and disruption in national and international

financial and commodity markets; changes in the competitive environment

in our markets and among banking organizations and

other financial service providers; government intervention in the U.S. financial

system; the effects of natural disasters (including

hurricanes), widespread health emergencies (including pandemics),

military conflict, terrorism, civil unrest, climate change or other

geopolitical events; our ability to declare and pay dividends; structural changes

in the markets for origination, sale and servicing of

residential mortgages; any inability to implement and maintain effective

internal control over financial reporting and/or disclosure

control; negative publicity and the impact on our reputation; and the limited

trading activity and concentration of ownership of our

common stock. Additional factors can be found in our Annual Report on

Form 10-K for the fiscal year ended December 31, 2024

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)

Mar 31, 2025

Dec 31, 2024

Sep 30, 2024

Jun 30, 2024

Mar 31, 2024

Shareowners' Equity (GAAP)

512,575

495,317

476,499

460,999

448,314

Less: Goodwill and Other Intangibles (GAAP)

92,733

92,773

92,813

92,853

92,893

Tangible Shareowners' Equity (non-GAAP)

419,842

402,544

383,686

368,146

355,421

Total Assets (GAAP)

4,461,233

4,324,932

4,225,316

4,225,695

4,259,922

Less: Goodwill and Other Intangibles (GAAP)

92,733

92,773

92,813

92,853

92,893

Tangible Assets (non-GAAP)

4,368,500

4,232,159

4,132,503

4,132,842

4,167,029

Tangible Common Equity Ratio (non-GAAP)

A/B

9.61%

9.51%

9.28%

8.91%

8.53%

Actual Diluted Shares Outstanding (GAAP)

17,072,330

17,018,122

16,980,686

16,970,228

16,947,204

Tangible Book Value

per Diluted Share (non-GAAP)

A/C

24.59

23.65

22.60

21.69

20.97

CAPITAL CITY BANK

GROUP,

INC.

EARNINGS HIGHLIGHTS

Unaudited

Three Months Ended

(Dollars in thousands, except per share data)

Mar 31, 2025

Dec 31, 2024

Mar 31, 2024

EARNINGS

Net Income Attributable to Common Shareowners

16,858

13,090

12,557

Diluted Net Income Per Share

0.99

0.77

0.74

PERFORMANCE

Return on Average Assets (annualized)

1.58

1.22

1.21

Return on Average Equity (annualized)

13.32

10.60

11.07

Net Interest Margin

4.22

4.17

4.01

Noninterest Income as % of Operating Revenue

32.39

31.34

32.06

Efficiency Ratio

62.93

69.74

71.06

CAPITAL ADEQUACY

Tier 1 Capital

18.01

17.46

15.67

Total Capital

19.20

18.64

16.84

Leverage

11.17

11.05

10.45

Common Equity Tier 1

16.08

15.54

13.82

Tangible Common Equity

(1)

9.61

9.51

8.53

Equity to Assets

11.49

11.45

10.52

ASSET QUALITY

Allowance as % of Non-Performing Loans

692.10

464.14

431.46

Allowance as a % of Loans HFI

1.12

1.10

1.07

Net Charge-Offs as % of Average Loans HFI

0.09

0.25

0.22

Nonperforming Assets as % of Loans HFI and OREO

0.17

0.25

Nonperforming Assets as % of Total Assets

0.10

0.15

0.16

STOCK PERFORMANCE

High

38.27

40.86

31.34

Low

33.00

26.59

35.96

36.65

27.70

Average Daily Trading Volume

24,486

27,484

31,023

(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

2025

2024

(Dollars in thousands)

First Quarter

Fourth Quarter

Third Quarter

Second Quarter

First Quarter

ASSETS

Cash and Due From Banks

78,521

70,543

83,431

75,304

73,642

Funds Sold and Interest Bearing Deposits

446,042

321,311

261,779

272,675

231,047

Total Cash and Cash Equivalents

524,563

391,854

345,210

347,979

304,689

Investment Securities Available for Sale

461,224

403,345

336,187

310,941

327,338

Investment Securities Held to Maturity

517,176

567,155

561,480

582,984

603,386

Other Equity Securities

2,315

2,399

6,976

2,537

3,445

Total Investment Securities

980,715

972,899

904,643

896,462

934,169

Loans Held for Sale ("HFS"):

21,441

28,672

31,251

24,022

24,705

Loans Held for Investment ("HFI"):

Commercial, Financial, & Agricultural

184,393

189,208

194,625

204,990

218,298

Real Estate - Construction

192,282

219,994

218,899

200,754

202,692

Real Estate - Commercial

806,942

779,095

819,955

823,122

823,690

Real Estate - Residential

1,040,594

1,028,498

1,023,485

1,012,541

1,012,791

Real Estate - Home Equity

225,987

220,064

210,988

211,126

214,617

Consumer

206,191

199,479

213,305

234,212

254,168

Other Loans

3,227

14,006

461

2,286

3,789

Overdrafts

1,154

1,206

1,378

1,192

1,127

Total Loans Held for Investment

2,660,770

2,651,550

2,683,096

2,690,223

2,731,172

Allowance for Credit Losses

(29,734)

(29,251)

(29,836)

(29,219)

(29,329)

Loans Held for Investment, Net

2,631,036

2,622,299

2,653,260

2,661,004

2,701,843

Premises and Equipment, Net

80,043

81,952

81,876

81,414

81,452

Goodwill and Other Intangibles

92,733

92,773

92,813

92,853

92,893

Other Real Estate Owned

132

367

650

Other Assets

130,570

134,116

115,613

121,311

120,170

Total Other Assets

303,478

309,208

290,952

296,228

294,516

Total Assets

4,461,233

4,324,932

4,225,316

4,225,695

4,259,922

LIABILITIES

Deposits:

Noninterest Bearing Deposits

1,363,739

1,306,254

1,330,715

1,343,606

1,361,939

NOW Accounts

1,292,654

1,285,281

1,174,585

1,177,180

1,212,452

Money Market Accounts

445,999

404,396

401,272

413,594

398,308

Savings Accounts

511,265

506,766

507,604

514,560

530,782

Certificates of Deposit

170,233

169,280

164,901

159,624

151,320

Total Deposits

3,783,890

3,671,977

3,579,077

3,608,564

3,654,801

Repurchase Agreements

22,799

26,240

29,339

22,463

23,477

Other Short-Term Borrowings

14,401

2,064

7,929

3,307

8,409

Subordinated Notes Payable

52,887

Other Long-Term Borrowings

794

1,009

265

Other Liabilities

73,887

75,653

71,974

69,987

65,181

Total Liabilities

3,948,658

3,829,615

3,742,000

3,758,217

3,805,020

Temporary Equity

6,817

6,479

6,588

SHAREOWNERS' EQUITY

Common Stock

171

170

169

Additional Paid-In Capital

38,576

37,684

36,070

35,547

34,861

Retained Earnings

476,715

463,949

454,342

445,959

435,364

Accumulated Other Comprehensive Loss, Net of Tax

(2,887)

(6,486)

(14,082)

(20,676)

(22,080)

Total Shareowners' Equity

512,575

495,317

476,499

460,999

448,314

Total Liabilities, Temporary Equity and Shareowners' Equity

4,461,233

4,324,932

4,225,316

4,225,695

4,259,922

OTHER BALANCE SHEET DATA

Earning Assets

4,108,969

3,974,431

3,880,769

3,883,382

3,921,093

Interest Bearing Liabilities

2,511,032

2,447,708

2,339,311

2,344,624

2,377,900

Book Value Per Diluted Share

30.02

29.11

28.06

27.17

26.45

Tangible Book Value

Per Diluted Share

(1)

24.59

23.65

22.60

21.69

20.97

Actual Basic Shares Outstanding

17,055

16,975

16,944

16,942

16,929

Actual Diluted Shares Outstanding

17,072

17,018

16,981

16,970

16,947

(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

2025

2024

(Dollars in thousands, except per share data)

First

Quarter

Fourth

Quarter

Third

Quarter

Second

Quarter

First

Quarter

INTEREST INCOME

Loans, including Fees

40,478

41,453

41,659

41,138

40,683

Investment Securities

5,808

4,694

4,155

4,004

4,244

Federal Funds Sold and Interest Bearing Deposits

3,496

3,596

3,514

3,624

1,893

Total Interest Income

49,782

49,743

49,328

48,766

46,820

INTEREST EXPENSE

Deposits

7,383

7,766

8,223

8,579

7,594

Repurchase Agreements

164

199

221

217

201

Other Short-Term Borrowings

117

Subordinated Notes Payable

560

581

610

630

628

Other Long-Term Borrowings

Total Interest Expense

8,235

8,640

9,117

9,497

8,465

Net Interest Income

41,547

41,103

40,211

39,269

38,355

Provision for Credit Losses

768

701

1,206

1,204

920

Net Interest Income after Provision for Credit Losses

40,779

40,402

39,005

38,065

37,435

NONINTEREST INCOME

Deposit Fees

5,061

5,207

5,512

5,377

5,250

Bank Card Fees

3,514

3,697

3,624

3,766

3,620

Wealth Management Fees

5,763

5,222

4,770

4,439

4,682

Mortgage Banking Revenues

3,820

3,118

3,966

4,381

2,878

Other

1,749

1,516

1,641

1,643

1,667

Total Noninterest Income

19,907

18,760

19,513

19,606

18,097

NONINTEREST EXPENSE

Compensation

26,248

26,108

25,800

24,406

24,407

Occupancy, Net

6,793

6,893

7,098

6,997

6,994

Other

5,660

8,781

10,023

9,038

8,770

Total Noninterest Expense

38,701

41,782

42,921

40,441

40,171

OPERATING PROFIT

21,985

17,380

15,597

17,230

15,361

Income Tax Expense

5,127

4,219

2,980

3,189

3,536

Net Income

16,858

13,161

12,617

14,041

11,825

Pre-Tax (Income) Loss Attributable to Noncontrolling Interest

(71)

501

109

732

NET INCOME ATTRIBUTABLE

COMMON SHAREOWNERS

16,858

13,090

13,118

14,150

12,557

PER COMMON SHARE

Basic Net Income

0.99

0.77

0.84

0.74

Diluted Net Income

0.99

0.77

0.83

0.74

Cash Dividend

0.24

0.23

0.21

AVERAGE

Basic

17,027

16,946

16,943

16,931

16,951

Diluted

17,044

16,990

16,979

16,960

16,969

CAPITAL CITY BANK GROUP,

INC.

ALLOWANCE FOR CREDIT LOSSES ("ACL")

AND CREDIT QUALITY

Unaudited

2025

2024

(Dollars in thousands, except per share data)

First

Quarter

Fourth

Quarter

Third

Quarter

Second

Quarter

First

Quarter

ACL - HELD FOR INVESTMENT LOANS

Balance at Beginning of Period

29,251

29,836

29,219

29,329

29,941

Transfer from Other (Assets) Liabilities

(50)

Provision for Credit Losses

1,083

1,085

1,879

1,129

932

Net Charge-Offs (Recoveries)

600

1,670

1,262

1,239

1,494

Balance at End of Period

29,734

29,251

29,836

29,219

29,329

As a % of Loans HFI

1.12%

1.10%

1.11%

1.09%

1.07%

As a % of Nonperforming Loans

692.10%

464.14%

452.64%

529.79%

431.46%

ACL - UNFUNDED COMMITMENTS

Balance at Beginning of Period

2,155

2,522

3,139

3,121

3,191

Provision for Credit Losses

(323)

(367)

(617)

(70)

Balance at End of Period

(1)

1,832

2,155

2,522

3,139

3,121

ACL - DEBT SECURITIES

Provision for Credit Losses

(17)

(56)

CHARGE-OFFS

Commercial, Financial and Agricultural

168

499

331

400

282

Real Estate - Construction

Real Estate - Commercial

Real Estate - Residential

Real Estate - Home Equity

Consumer

865

1,307

1,315

1,061

1,550

Overdrafts

570

574

611

571

638

Total Charge-Offs

1,611

2,504

2,283

2,032

2,563

RECOVERIES

Commercial, Financial and Agricultural

103

176

Real Estate - Construction

Real Estate - Commercial

204

Real Estate - Residential

119

Real Estate - Home Equity

Consumer

481

352

405

313

410

Overdrafts

324

298

288

342

353

Total Recoveries

1,011

834

1,021

793

1,069

NET CHARGE-OFFS (RECOVERIES)

600

1,670

1,262

1,239

1,494

Net Charge-Offs as a % of Average Loans

HFI

(2)

0.09%

0.25%

0.19%

0.18%

0.22%

CREDIT QUALITY

Nonaccruing Loans

4,296

6,302

6,592

5,515

6,798

Other Real Estate Owned

132

367

650

Total Nonperforming Assets ("NPAs")

4,428

6,669

7,242

6,165

6,799

Past Due Loans 30-89 Days

3,735

4,311

9,388

5,672

5,392

Classified Loans

19,194

19,896

25,501

25,566

22,305

Nonperforming Loans as a % of Loans HFI

0.16%

0.24%

0.25%

0.21%

0.25%

NPAs as a % of Loans HFI and Other Real Estate

0.17%

0.25%

0.27%

0.23%

0.25%

NPAs as a % of

Total Assets

0.10%

0.15%

0.17%

0.15%

0.16%

(1)

Recorded in other liabilities

(2)

Annualized

CAPITAL CITY BANK GROUP,

INC.

AVERAGE

BALANCE AND INTEREST RATES

Unaudited

First Quarter 2025

Fourth Quarter 2024

Third Quarter 2024

Second Quarter 2024

First Quarter 2024

(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

24,726

490

8.04

31,047

976

7.89

24,570

720

7.49

26,281

517

5.26

27,314

563

5.99

Loans Held for Investment

(1)

2,665,910

40,029

6.09

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

Investment Securities

Taxable Investment Securities

981,485

5,802

2.38

914,353

4,688

2.04

907,610

4,148

1.82

918,989

3,998

1.74

952,328

4,238

1.78

Tax-Exempt Investment Securities

(1)

845

4.32

849

4.31

846

4.33

843

4.36

856

4.34

Total Investment Securities

982,330

5,811

2.38

915,202

4,697

2.04

908,456

4,158

1.82

919,832

4,007

1.74

953,184

4,248

1.78

Federal Funds Sold and Interest Bearing Deposits

320,948

3,496

4.42

298,255

3,596

4.80

256,855

3,514

5.44

262,419

3,624

5.56

140,488

1,893

5.42

Total Earning Assets

3,993,914

49,826

5.06

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

Cash and Due From Banks

73,467

73,992

70,994

74,803

75,763

Allowance for Credit Losses

(30,008)

(30,107)

(29,905)

(29,564)

(30,030)

Other Assets

297,660

293,884

291,359

291,669

295,275

Total Assets

4,335,033

4,259,669

4,215,862

4,272,188

4,190,623

LIABILITIES:

Noninterest Bearing Deposits

1,317,425

1,323,556

1,332,305

1,346,546

1,344,188

NOW Accounts

1,249,955

3,854

1.25

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

Money Market Accounts

420,059

2,187

2.11

422,615

2,526

2.38

418,625

2,694

2.56

407,387

2,752

2.72

353,591

1,985

2.26

Savings Accounts

507,676

176

0.14

504,859

179

0.14

512,098

180

0.14

519,374

176

0.14

539,374

188

0.14

Time Deposits

170,367

1,166

2.78

167,321

1,235

2.94

163,462

1,262

3.07

160,078

1,226

3.08

138,328

924

2.69

Total Interest Bearing Deposits

2,348,057

7,383

1.28

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

Total Deposits

3,665,482

7,383

0.82

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

Repurchase Agreements

29,821

164

2.23

28,018

199

2.82

27,126

221

3.24

26,999

217

3.24

25,725

201

3.14

Other Short-Term Borrowings

7,437

117

6.39

6,510

5.06

2,673

7.63

6,592

4.16

3,758

4.16

Subordinated Notes Payable

52,887

560

4.23

52,887

581

4.30

52,887

610

4.52

52,887

630

4.71

52,887

628

4.70

Other Long-Term Borrowings

794

5.68

794

5.57

795

5.55

258

4.31

281

4.80

Total Interest Bearing Liabilities

2,438,996

8,235

1.37

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

Other Liabilities

65,211

73,130

73,767

72,634

68,295

Total Liabilities

3,821,632

3,761,763

3,729,282

3,800,398

3,727,459

Temporary Equity

6,763

6,443

6,493

7,150

SHAREOWNERS' EQUITY:

513,401

491,143

480,137

465,297

456,014

Total Liabilities, Temporary

Equity and Shareowners' Equity

4,335,033

4,259,669

4,215,862

4,272,188

4,190,623

Interest Rate Spread

41,591

3.69

41,150

3.59

40,260

3.49

39,334

3.38

38,435

3.43

Interest Income and Rate Earned

(1)

49,826

5.06

49,790

5.05

49,377

5.06

48,831

4.99

46,900

4.90

Interest Expense and Rate Paid

(2)

8,235

0.84

8,640

0.88

9,117

0.93

9,497

0.97

8,465

0.88

Net Interest Margin

41,591

4.22

41,150

4.17

40,260

4.12

39,334

4.02

38,435

4.01

(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.