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 25, 2022

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 January 25, 2022, Capital City Bank Group, Inc. (“CCBG”) issued an earnings press release

reporting CCBG’s financial

results for the year ended December 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 January 25, 2022.

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 25, 2022

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 January 25, 2022

ex991

Capital City Bank Group, Inc.

Reports Fourth Quarter 2021 Results

TALLAHASSEE, Fla.

(January 25, 2022) – Capital City Bank Group, Inc. (NASDAQ: CCBG) today reported

net income of $6.4

million, or $0.38 per diluted share, for the fourth quarter of 2021

compared to net income of $10.1

million, or $0.60 per diluted

share, for the third quarter of 2021, and $7.7 million, or $0.46 per diluted share, for the fourth quarter of 2020.

For the full year of 2021, net income totaled $33.4 million, or $1.98 per diluted share, compared

to net income of $31.6 million, or

$1.88 per diluted share, for 2020.

Fourth Quarter 2021

HIGHLIGHTS

●

Operating revenues (excluding mortgage

revenues and SBA PPP loan income)

improved 1.9%

●

Capital City Home Loans (“CCHL”) contributed $0.03 per share

versus $0.06 per share in the prior quarter reflecti

ve of a

typical seasonal slowdown

●

Noninterest expense increased

$0.5 million, or 1.3%, on higher other real estate expense

related to a third quarter

gain of $1.0

million on the sale of a banking office

●

Average loans, excluding PPP loans,

grew $8 million and average investment securities increased

$82 million

●

Noninterest expense included a pension

settlement charge of $0.6 million or $0.03 per share

●

Strong credit quality

metrics resulted in no loan loss provision

and an allowance coverage ratio of 1.12%

●

Average Deposits grew

$101 million, or 2.9%, primarily due to a seasonal increase

in public fund inflows

●

Capital growth of $34.3 million ($2.03 per share),

or 9.8%, primarily attributable to a favorable adjustment for year-end

pension

plan re-measurement

Full Year

2021

HIGHLIGHTS

●

2021 net income totaled $33.4 million, a record

year

●

Operating revenues (excluding mortgage

revenues and SBA PPP loan income)

improved 1.4%

●

CCHL contributed $0.23 per share versus $0.

52 per share in 2020

●

Average loans, excluding PPP loans,

grew $76 million and average investment securities increased

$203 million

●

Negative loan loss provision of $1.6 million

●

Noninterest expense included pension

settlement charges totaling $3.1 million or $0.15 per share

●

Average Deposits grew

$563 million, or 19.8%, reflective of government

stimulus related inflows

●

Capital growth of $62.3 million ($3.69 per share),

or 19.4%

“Capital City reported record earnings in 2021,” said William

G. Smith, Jr., Chairman, President and

CEO of Capital City Bank

Group.

“SBA PPP loan income, pristine credit

quality and growth in our fee-based businesses drove earnings, more than offsetting

the adverse impacts of a normalizing mortgage market, pension settlement charges

and a lower interest rate environment. We

are

well positioned for rising interest rates given our asset sensitive balance sheet and the

favorable impact higher interest rates have on

our pension related other comprehensive loss.

Year

over year, the favorable pension equity adjustment added

$2.01 per share to

book value.

As I look toward 2022, I am excited about the prospects of our recent addition of Capital City Strategic Wealth

financial planning/advisory service), which gained traction in the latter half of 2021

and our market expansion in the western

panhandle of Florida and the northern arc of Atlanta.

While challenges remain, we are identifying opportunities and executing on

strategies we believe are sustainable and add long-term value for our shareowners. I am optimistic

about the future and appreciate

your continued support.”

Discussion of Operating Results

Net Interest Income/Net Interest

Margin

Tax-equivalent net interest income

for the fourth quarter of 2021 totaled $24.8 million compared to $27.8

million for the third

quarter of 2021 and $25.1 million for the fourth quarter of 2020.

For the full year 2021 tax-equivalent net interest income totaled

$103.2

million compared to $101.8

million for 2020.

Compared to the third quarter of 2021 and the fourth quarter of 2020, the

decrease was primarily due to lower SBA PPP loan income.

Compared to the full year 2020, the increase was primarily attributable

to higher SBA PPP loan income and higher average loan balances, partially offset by

unfavorable rate repricing due to a generally

lower rate environment.

Our net interest margin for the fourth quarter of 2021 was 2.60%,

a decrease of 38 basis points over the third quarter of 2021 and a

decrease of 40 basis points from the fourth quarter of 2020.

Compared to both prior periods, the decrease was attributable to a

decline in SBA PPP loan income, in conjunction with growth in earning assets (driven by

deposit inflows), which negatively impacts

our margin percentage. For the full year 2021, the net interest

margin declined

47 basis points compared to 2020, primarily driven by

growth in earning assets.

Our net interest margin for the fourth quarter of 2021, excluding the impact of

overnight funds in excess of

$200 million, was 3.10%.

Provision for Credit Loss

We did

not record a provision for credit losses for the fourth quarter of 2021.

This compares

to provision expense of $1.3 million

for the fourth quarter of 2020.

For the full year 2021, we recorded a negative provision of $1.6 million compared to provision

expense of $9.6 million for 2020.

The lower provision in 2021 was attributable to improvements in forecasted economic

conditions,

favorable loan migration and net loan recoveries totaling $0.6 million.

We discuss the allowance

for credit losses further below.

Noninterest Income and Noninterest

Expense

Noninterest income for the fourth quarter of 2021 totaled $24.7 million compared

to $26.6 million for the third quarter of 2021

and

$30.5 million for the fourth quarter of 2020.

For the full year 2021, noninterest income totaled $107.5 million compared to $111.2

million for 2020.

The decrease from all prior periods was primarily attributable to lower mortgage banking revenues

that were

partially offset by strong gains in deposit fees, bank card fees, and

wealth management fees.

The decline in mortgage banking

revenues for the fourth quarter of 2021 reflected a normal seasonal decline in loan purchase

activity.

Year

over year, the decline in

mortgage banking revenues was driven generally by lower refinancing activity,

a shift in production mix (lower government versus

conventional product), and lower market driven gain on sale margins.

Additional detail on our mortgage banking operation (CCHL)

is provided on Page 11.

The increase in deposit fees reflected the conversion, in the third quarter of 2021

of the remaining free

checking accounts to a monthly maintenance fee account type.

The increase in wealth management fees was primarily attributable

to higher retail brokerage transaction volume and advisory accounts added

from the acquisition of Capital City Strategic Wealth

May 1, 2021.

To a lesser extent, higher trust

fees contributed to the increase in wealth management fees driven by higher

assets

under management.

The increase in bank card fees generally reflected an increase in card-not

-present debit card transactions and

increased consumer spending.

Noninterest expense for the fourth quarter of 2021

totaled $40.2 million compared to $39.7 million for the third quarter of 2021

and

$41.3 million for the fourth quarter of 2020.

The increase over the third quarter of 2021

was primarily attributable to higher other

real estate expense of $1.2 million, partially offset by lower compensation

expense of $0.5 million.

The increase in other real estate

expense reflected a gain on the sale of a banking office in the third quarter

of 2021.

The decrease in compensation was attributable

to lower commission expense at CCHL.

Compared to the fourth quarter of 2020, the decrease was primarily due to lower

commission expense at CCHL.

For the full year 2021, noninterest expense totaled $162.5 million compared to $150.0

million for 2021. The $12.5 million increase

was attributable to the addition of expenses at CCHL (March 1, 2020 acquisition) of $2.3

million and higher expenses at the core

bank totaling $10.2 million.

The increase in expenses at the core bank were primarily due to higher compensation

expense of $3.7

million (merit raises,

pension/service cost expense, and realized loan cost), pension settlement expense of $3.1

million, and an

increase in other expense of $5.0 million, partially offset by lower other

real estate expense of $1.6 million.

The increase in other

expense was primarily attributable to higher expense of $2.1 million for the non-service cost

component of our pension plan

attributable to the utilization of a lower discount rate for plan liabilities.

Higher processing fees of $0.7

million (debit card volume),

professional fees of $0.6

million, occupancy expense of $0.5

million, and FDIC insurance of $0.5

million (higher asset size) also

contributed to the increase in other expense.

Income Taxes

We realized

income tax expense of $2.0

million (effective rate of 22%) for the fourth quarter of 2021 compared to

$2.9 million

(effective rate of 20%) for the third quarter of 2021 and $2.8 million (effective

rate of 22%) for the fourth quarter of 2020.

For the

full year 2021, we realized income tax expense of $9.8 million (effective

rate of 20%) compared to $10.2

million (effective rate of

19%) for the same period of 2020.

Tax expense for the fourth quarter

of 2021

and 2020 was unfavorably impacted by discrete tax

expense of $0.1 million and $0.3 million, respectively.

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

approximate 19%-20% in 2022.

Discussion of Financial Condition

Earning Assets

Average earning assets totaled

$3.791 billion for the fourth quarter of 2021, an increase of $98.2 million, or 2.7%, over

the third

quarter of 2021, and an increase of $453.9 million, or 13.6%, over the fourth quarter of 20

20.

The increase over both prior periods

was primarily driven by higher deposit balances.

Deposit balances increased as a result of strong core deposit growth, SBA PPP

loan proceeds deposited in client accounts, 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

$789.1 million in the fourth quarter of 2021

compared to an average net overnight funds sold position of $741.9 million in the third

quarter of 2021

and $705.1 million in the fourth 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”) decreased $25.8 million, or 1.3%, from the third

quarter of 2021 and decreased $45.1

million, or 2.3%, from the fourth quarter of 2020. Excluding SBA PPP loans, average loans

HFI increased $7.8 million compared to

the third quarter of 2021, and increased $133.1 million compared to the fourth quarter of 2020.

Compared to the third quarter of

2021 the increase in average loans (excluding PPP loans) reflected growth in construction

and indirect loans, partially offset by

declines in the remaining loan products. Compared to the fourth quarter of 2020,

we realized growth in construction, residential,

commercial real estate and indirect loans.

At December 31, 2021, remaining SBA PPP loan balances and fees totaled less

than $0.2

million.

Allowance for Credit Losses

At December 31, 2021, the allowance for credit losses for HFI loans totaled $21.6

million compared to $21.5 million at September

30, 2021 and $23.8 million at December 31, 2020.

Activity within the allowance is provided on Page 9.

At December 31, 2021, the

allowance represented 1.12% of HFI loans and provided coverage of 546

of nonperforming loans compared to 1.11%

and 710%,

respectively, at September 30,

2021, and 1.19% and 406%, respectively,

at December 31, 2020.

At December 31, 2021, excluding

SBA PPP loans (100% government guaranteed),

the allowance represented 1.12% of HFI loans compared to 1.30% at December

31,

2020.

Credit Quality

Overall credit quality continues to remain strong.

Nonperforming assets (nonaccrual loans and other real estate) totaled $4.3

million

at December 31, 2021 compared to $3.2 million at September 30, 2021

and $6.7 million at December 31, 2020.

At December 31,

2021, nonperforming assets as a percentage of total assets was stable at 0.10

Nonaccrual loans totaled $4.3 million at December

31, 2021, a $1.3 million increase over September 30, 2021 and a $1.5 million decrease

from December 31, 2020.

Funding (Deposits/Debt)

Average total deposits

were $3.549 billion for the fourth quarter of 2021, an increase of $101.5 million, or 2.9%, over

the third

quarter of 2021

and $483.0 million, or 15.8%, over the fourth quarter of 2020.

Compared to both prior periods, growth in average

total deposits was experienced in all products except certificates of deposit,

with the strongest growth occurring in our noninterest

bearing deposits and savings account balances.

Over the past 18 months, multiple government stimulus programs have

been

implemented, including those under 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 into 2022 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 $3.4 million from the third quarter of 2021

and declined $48.9 million from the fourth

quarter of 2020, both of which reflected a seasonal fluctuation in warehouse line borrowing

needs to support CCHL’s

loans held for

sale.

Capital

Shareowners’ equity was $383.2 million at December 31, 2021

compared to $348.9 million at September 30, 2021 and $320.8

million at December 31, 2020.

For the full year 2021, shareowners’ equity was positively impacted by net income of $33.4

million,

a $34.1 million decrease in the accumulated other comprehensive loss for our pension plan,

a $1.1 million increase in fair value of

the interest rate swap related to subordinated debt, net adjustments totaling $1.4

million related to transactions under our stock

compensation plans, stock compensation accretion of $0.8 million, and reclassification

of $9.3 million from temporary equity to

decrease the redemption value of the non-controlling interest in CCHL.

Shareowners’ equity was reduced by common stock

dividends of $10.5 million ($0.62 per share) and a $7.3 million decrease in the unrealized

gain on investment securities.

At December 31, 2021, our total risk-based capital ratio was 17.15

compared to 16.70% at September 30, 2021 and 17.30% at

December 31, 2020.

Our common equity tier 1 capital ratio was 13.86%, 13.45%, and 13.71%, respectively,

on these dates.

Our

leverage ratio was 8.95%, 9.05%, and 9.33%, respectively,

on these dates.

All of our regulatory capital ratios exceeded the

threshold to be designated as “well-capitalized” under the Basel III capital

standards.

Further, our tangible common equity ratio

was 6.95% at December 31, 2021 compared to 6.46% and 6.25% at September 30,

2021 and December 31, 2020, respectively.

Our

tangible capital ratio was favorably impacted at December 31, 2021 by the aforementioned

annual adjustment to the other

comprehensive loss for our pension plan.

The favorable adjustment was primarily attributable to the utilization of

higher discount

rates to re-measure the present value of the projected benefit obligation and a strong return

on plan assets for 2021.

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 life

insurance.

Our bank subsidiary, Capital

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

86 ATMs/ITMs

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 and other

intangibles 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)

Dec 31, 2021

Sep 30, 2021

Jun 30, 2021

Mar 31, 2021

Dec 31, 2020

Shareowners' Equity (GAAP)

383,166

348,868

335,880

324,426

320,837

Less: Goodwill and Other Intangibles (GAAP)

93,253

93,293

93,333

89,095

Tangible Shareowners' Equity (non-GAAP)

289,913

255,575

242,547

235,331

231,742

Total Assets (GAAP)

4,263,849

4,048,733

4,011,459

3,929,884

3,798,071

Less: Goodwill and Other Intangibles (GAAP)

93,253

93,293

93,333

89,095

Tangible Assets (non-GAAP)

4,170,596

3,955,440

3,918,126

3,840,789

3,708,976

Tangible Common Equity Ratio (non-GAAP)

A/B

6.95%

6.46%

6.19%

6.13%

6.25%

Actual Diluted Shares Outstanding (GAAP)

16,935,389

16,911,715

16,901,375

16,875,719

16,844,997

Tangible Book Value

per Diluted Share (non-GAAP)

A/C

17.12

15.11

14.35

13.94

13.76

CAPITAL CITY BANK

GROUP,

INC.

EARNINGS HIGHLIGHTS

Unaudited

Three Months Ended

Twelve Months Ended

(Dollars in thousands, except per share data)

Dec 31, 2021

Sep 30, 2021

Dec 31, 2020

Dec 31, 2021

Dec 31, 2020

EARNINGS

Net Income Attributable to Common Shareowners

6,372

10,091

7,746

33,396

31,576

Diluted Net Income Per Share

0.38

0.60

0.46

1.98

1.88

PERFORMANCE

Return on Average Assets

0.61

0.99

0.84

0.93

Return on Average Equity

7.22

11.72

8.97

9.92

9.36

Net Interest Margin

2.60

2.98

3.00

2.83

3.30

Noninterest Income as % of Operating Revenue

49.96

48.99

55.00

51.11

52.32

Efficiency Ratio

81.29

73.09

74.36

77.11

70.43

CAPITAL ADEQUACY

Tier 1 Capital

16.14

15.69

16.19

16.14

16.19

Total Capital

17.15

16.70

17.30

17.15

17.30

Leverage

8.95

9.05

9.33

8.95

9.33

Common Equity Tier 1

13.86

13.45

13.71

13.86

13.71

Tangible Common Equity

(1)

6.95

6.46

6.25

6.95

6.25

Equity to Assets

8.99

8.62

8.45

8.99

8.45

ASSET QUALITY

Allowance as % of Non-Performing Loans

499.93

710.39

405.66

499.93

405.66

Allowance as a % of Loans HFI

1.12

1.11

1.19

1.12

1.19

Net Charge-Offs as % of Average Loans HFI

0.02

0.03

0.09

(0.03)

0.12

Nonperforming Assets as % of Loans HFI and OREO

0.22

0.17

0.33

0.22

0.33

Nonperforming Assets as % of Total Assets

0.10

0.08

0.18

0.10

0.18

STOCK PERFORMANCE

High

29.00

26.10

26.35

29.00

30.62

Low

24.77

22.02

18.14

21.42

15.61

26.40

24.74

24.58

26.40

24.58

Average Daily Trading Volume

29,900

30,515

22,271

29,919

35,125

(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)

Fourth Quarter

Third Quarter

Second Quarter

First Quarter

Fourth Quarter

ASSETS

Cash and Due From Banks

65,313

73,132

78,894

73,973

67,919

Funds Sold and Interest Bearing Deposits

970,041

708,988

766,920

851,910

860,630

Total Cash and Cash Equivalents

1,035,354

782,120

845,814

925,883

928,549

Investment Securities Available for Sale

654,611

645,844

480,890

406,245

324,870

Investment Securities Held to Maturity

339,601

341,228

325,559

199,109

169,939

Other Equity Securities

861

Total Investment Securities

995,073

987,072

806,449

605,354

494,809

Loans Held for Sale

52,532

77,036

80,821

82,081

114,039

Loans Held for Investment ("HFI"):

Commercial, Financial, & Agricultural

223,086

218,929

292,953

413,819

393,930

Real Estate - Construction

174,394

177,443

149,884

138,104

135,831

Real Estate - Commercial

663,550

683,379

707,599

669,158

648,393

Real Estate - Residential

346,756

355,958

362,018

358,849

342,664

Real Estate - Home Equity

187,821

187,642

190,078

202,099

205,479

Consumer

321,511

309,983

298,464

267,666

269,520

Other Loans

13,265

6,792

6,439

7,082

9,879

Overdrafts

1,082

1,299

1,227

950

730

Total Loans Held for Investment

1,931,465

1,941,425

2,008,662

2,057,727

2,006,426

Allowance for Credit Losses

(21,606)

(21,500)

(22,175)

(22,026)

(23,816)

Loans Held for Investment, Net

1,909,859

1,919,925

1,986,487

2,035,701

1,982,610

Premises and Equipment, Net

83,412

84,750

85,745

86,370

86,791

Goodwill and Other Intangibles

93,253

93,293

93,333

89,095

Other Real Estate Owned

192

1,192

110

808

Other Assets

94,349

104,345

111,618

105,290

101,370

Total Other Assets

271,031

282,580

291,888

280,865

278,064

Total Assets

4,263,849

4,048,733

4,011,459

3,929,884

3,798,071

LIABILITIES

Deposits:

Noninterest Bearing Deposits

1,668,912

1,592,345

1,552,864

1,473,891

1,328,809

NOW Accounts

1,070,154

926,201

970,705

993,571

1,046,408

Money Market Accounts

274,611

286,065

280,805

269,041

266,649

Regular Savings Accounts

599,811

559,714

539,477

518,373

474,100

Certificates of Deposit

99,374

101,637

103,070

103,232

101,594

Total Deposits

3,712,862

3,465,962

3,446,921

3,358,108

3,217,560

Short-Term Borrowings

34,557

51,410

47,200

55,687

79,654

Subordinated Notes Payable

52,887

Other Long-Term Borrowings

884

1,610

1,720

1,829

3,057

Other Liabilities

67,735

113,720

105,534

109,487

102,076

Total Liabilities

3,868,925

3,685,589

3,654,262

3,577,998

3,455,234

Temporary Equity

11,758

14,276

21,317

27,460

22,000

SHAREOWNERS' EQUITY

Common Stock

169

168

Additional Paid-In Capital

34,423

33,876

33,560

32,804

32,283

Retained Earnings

364,788

359,550

345,574

335,324

332,528

Accumulated Other Comprehensive Loss, Net of Tax

(16,214)

(44,727)

(43,423)

(43,871)

(44,142)

Total Shareowners' Equity

383,166

348,868

335,880

324,426

320,837

Total Liabilities, Temporary Equity and Shareowners' Equity

4,263,849

4,048,733

4,011,459

3,929,884

3,798,071

OTHER BALANCE SHEET DATA

Earning Assets

3,949,111

3,714,521

3,662,852

3,597,071

3,475,904

Interest Bearing Liabilities

2,132,278

1,979,524

1,995,864

1,994,620

2,024,349

Book Value Per Diluted Share

22.63

20.63

19.87

19.22

19.05

Tangible Book Value

Per Diluted Share

(1)

17.12

15.11

14.35

13.94

13.76

Actual Basic Shares Outstanding

16,892

16,878

16,874

16,852

16,791

Actual Diluted Shares Outstanding

16,935

16,912

16,901

16,876

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

December 31,

(Dollars in thousands, except per share data)

Fourth

Quarter

Third

Quarter

Second

Quarter

First

Quarter

Fourth

Quarter

2021

2020

INTEREST INCOME

Interest and Fees on Loans

22,744

25,885

24,582

23,350

23,878

96,561

94,752

Investment Securities

2,505

2,350

2,054

1,883

2,096

8,792

10,274

Funds Sold

300

285

200

213

180

998

1,171

Total Interest Income

25,549

28,520

26,836

25,446

26,154

106,351

106,197

INTEREST EXPENSE

Deposits

213

210

208

201

839

1,548

Short-Term Borrowings

307

317

324

412

639

1,360

1,690

Subordinated Notes Payable

306

307

308

307

311

1,228

1,472

Other Long-Term Borrowings

161

Total Interest Expense

838

848

856

948

1,181

3,490

4,871

Net Interest Income

24,711

27,672

25,980

24,498

24,973

102,861

101,326

Provision for Credit Losses

(571)

(982)

1,342

(1,553)

9,645

Net Interest Income after Provision for Credit Losses

24,711

27,672

26,551

25,480

23,631

104,414

91,681

NONINTEREST INCOME

Deposit Fees

5,300

5,075

4,236

4,271

4,713

18,882

17,800

Bank Card Fees

3,872

3,786

3,998

3,618

3,462

15,274

13,044

Wealth Management Fees

3,706

3,623

3,274

3,090

3,069

13,693

11,035

Mortgage Banking Revenues

9,800

12,283

13,217

17,125

17,711

52,425

63,344

Other

1,994

1,807

1,748

1,722

1,568

7,271

5,942

Total Noninterest Income

24,672

26,574

26,473

29,826

30,523

107,545

111,165

NONINTEREST EXPENSE

Compensation

24,783

25,245

25,378

26,064

26,722

101,470

96,280

Occupancy, Net

5,960

6,032

5,973

5,967

5,976

23,932

22,659

Other Real Estate, Net

(1,126)

(270)

(118)

567

(1,488)

104

Pension Settlement

572

500

2,000

3,072

Other

8,866

9,051

9,042

8,563

8,083

35,522

30,919

Total Noninterest Expense

40,207

39,702

42,123

40,476

41,348

162,508

149,962

OPERATING PROFIT

9,176

14,544

10,901

14,830

12,806

49,451

52,884

Income Tax Expense

2,040

2,949

2,059

2,787

2,833

9,835

10,230

Net Income

7,136

11,595

8,842

12,043

9,973

39,616

42,654

Pre-Tax Income Attributable to Noncontrolling Interest

(764)

(1,504)

(1,415)

(2,537)

(2,227)

(6,220)

(11,078)

NET INCOME ATTRIBUTABLE

COMMON SHAREOWNERS

6,372

10,091

7,427

9,506

7,746

33,396

31,576

PER COMMON SHARE

Basic Net Income

0.38

0.60

0.44

0.56

0.46

1.98

1.88

Diluted Net Income

0.38

0.60

0.44

0.56

0.46

1.98

1.88

Cash Dividend

0.16

0.15

0.62

0.57

AVERAGE

Basic

16,880

16,875

16,858

16,838

16,763

16,863

16,785

Diluted

16,923

16,909

16,885

16,862

16,817

16,893

16,822

CAPITAL CITY BANK GROUP,

INC.

ALLOWANCE FOR CREDIT LOSSES ("ACL")

AND RISK ELEMENT ASSETS

Unaudited

2021

2020

December 31,

(Dollars in thousands, except per share data)

Fourth

Quarter

Third

Quarter

Second

Quarter

First

Quarter

Fourth

Quarter

2021

2020

ACL - HELD FOR INVESTMENT LOANS

Balance at Beginning of Period

21,500

22,175

22,026

23,816

23,137

23,816

13,905

Impact of Adopting ASC 326 (CECL)

3,269

Provision for Credit Losses

200

(546)

(184)

(2,312)

1,165

(2,842)

9,035

Net Charge-Offs (Recoveries)

129

(333)

(522)

486

(632)

2,393

Balance at End of Period

21,606

21,500

22,175

22,026

23,816

21,606

23,816

As a % of Loans HFI

1.12%

1.11%

1.10%

1.07%

1.19%

1.12%

1.19%

As a % of Nonperforming Loans

499.93%

710.39%

433.93%

410.78%

405.66%

499.93%

405.66%

ACL - DEBT SECURITIES

Provision for Credit Losses

ACL - UNFUNDED COMMITMENTS

Balance at Beginning of Period

3,117

2,587

2,974

1,644

1,467

1,644

157

Impact of Adopting ASC 326 (CECL)

876

Provision for Credit Losses

(220)

530

(387)

1,330

177

1,253

611

Balance at End of Period

(1)

2,897

3,117

2,587

2,974

1,644

2,897

1,644

CHARGE-OFFS

Commercial, Financial and Agricultural

101

104

239

789

Real Estate - Construction

Real Estate - Commercial

405

Real Estate - Residential

108

150

Real Estate - Home Equity

103

151

Consumer

254

221

230

564

668

1,269

2,785

Overdrafts

678

1,093

440

492

564

2,703

2,257

Total Charge-Offs

1,062

1,788

841

1,136

1,384

4,827

6,160

RECOVERIES

Commercial, Financial and Agricultural

148

103

136

453

252

Real Estate - Construction

Real Estate - Commercial

169

645

865

318

Real Estate - Residential

401

244

153

753

279

Real Estate - Home Equity

173

124

413

178

Consumer

214

334

332

311

306

1,191

1,219

Overdrafts

375

633

399

367

258

1,774

1,471

Total Recoveries

968

1,659

1,174

1,658

898

5,459

3,767

NET CHARGE-OFFS (RECOVERIES)

129

(333)

(522)

486

(632)

2,393

Net Charge-Offs as a % of Average Loans HFI

(2)

0.02%

0.03%

(0.07)%

(0.10)%

0.09%

(0.03)%

0.12%

RISK ELEMENT ASSETS

Nonaccruing Loans

4,322

3,026

5,110

5,362

5,871

Other Real Estate Owned

192

1,192

110

808

Total Nonperforming Assets ("NPAs")

4,339

3,218

6,302

5,472

6,679

Past Due Loans 30-89 Days

3,600

3,360

3,745

2,622

4,594

Past Due Loans 90 Days or More

Classified Loans

17,912

16,310

19,397

20,608

17,631

Performing Troubled Debt Restructurings

7,643

7,919

8,992

13,597

13,887

Nonperforming Loans as a % of Loans HFI

0.22%

0.16%

0.25%

0.26%

0.29%

NPAs as a % of Loans HFI and Other Real Estate

0.22%

0.17%

0.31%

0.27%

0.33%

NPAs as a % of

Total Assets

0.10%

0.08%

0.16%

0.14%

0.18%

(1)

Recorded in other liabilities

(2)

Annualized

CAPITAL CITY BANK GROUP,

INC.

AVERAGE

BALANCE AND INTEREST RATES

Unaudited

Fourth Quarter 2021

Third Quarter 2021

Second Quarter 2021

First Quarter 2021

Fourth Quarter 2020

Dec 2021 YTD

Dec 2020 YTD

(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

62,809

522

3.29

67,753

497

2.91

77,101

566

2.94

106,242

970

3.70

121,052

878

3.85

78,328

2,555

3.24

81,125

2,895

3.57

Loans Held for Investment

(1)

1,948,324

22,296

4.54

1,974,132

25,458

5.12

2,036,781

24,095

4.74

2,044,363

22,483

4.46

1,993,470

23,103

4.55

2,000,563

94,332

4.76

1,957,576

92,261

4.71

Investment Securities

Taxable Investment Securities

987,700

2,493

1.00

904,962

2,333

1.03

687,882

2,036

1.18

528,842

1,863

1.41

513,277

2,072

1.61

778,953

8,725

1.12

574,199

10,176

1.77

Tax-Exempt Investment Securities

(1)

3,380

2.07

4,332

2.31

3,530

2.58

3,844

2.61

4,485

2.71

3,772

2.39

5,123

124

2.42

Total Investment Securities

991,080

2,510

1.01

909,294

2,358

1.03

691,412

2,059

1.19

532,686

1,888

1.42

517,762

2,102

1.62

782,725

8,815

1.12

579,322

10,300

1.78

Funds Sold

789,100

300

0.15

741,944

285

0.15

818,616

200

0.10

814,638

213

0.11

705,125

180

0.10

790,870

998

0.13

465,652

1,171

0.25

Total Earning Assets

3,791,313

25,628

2.68

3,693,123

28,598

3.07

3,623,910

26,920

2.98

3,497,929

25,554

2.96

3,337,409

26,263

3.14

3,652,486

106,700

2.92

3,083,675

106,627

3.46

Cash and Due From Banks

73,752

72,773

74,076

68,978

73,968

72,409

68,386

Allowance for Loan Losses

(22,127)

(22,817)

(22,794)

(24,128)

(23,725)

(22,960)

(20,690)

Other Assets

284,999

283,534

281,157

278,742

264,784

282,129

259,700

Total Assets

4,127,937

4,026,613

3,956,349

3,821,521

3,652,436

3,984,064

3,391,071

LIABILITIES:

Interest Bearing Deposits

NOW Accounts

963,778

0.03

945,788

0.03

966,649

0.03

985,517

0.03

879,564

0.03

965,320

294

0.03

826,280

930

0.11

Money Market Accounts

289,335

0.05

282,860

0.05

272,138

0.05

269,829

0.05

261,543

0.05

278,606

134

0.05

235,931

223

0.09

Savings Accounts

573,563

0.05

551,383

0.05

529,844

0.05

492,252

0.05

466,116

0.05

537,023

263

0.05

423,529

207

0.05

Time Deposits

101,037

0.14

102,765

0.14

102,995

0.15

102,089

0.15

102,809

0.17

102,220

148

0.14

104,393

188

0.18

Total Interest Bearing Deposits

1,927,713

213

0.04

1,882,796

210

0.04

1,871,626

208

0.04

1,849,687

208

0.05

1,710,032

201

0.05

1,883,169

839

0.04

1,590,133

1,548

0.10

Short-Term Borrowings

46,355

307

2.63

49,773

317

2.53

51,152

324

2.54

67,033

412

2.49

95,280

639

2.67

53,511

1,360

2.54

69,119

1,690

2.44

Subordinated Notes Payable

52,887

306

2.26

52,887

307

2.27

52,887

308

2.30

52,887

307

2.32

52,887

311

2.30

52,887

1,228

2.29

52,887

1,472

2.74

Other Long-Term Borrowings

1,414

3.50

1,652

3.37

1,762

3.38

2,736

3.18

3,700

3.18

1,887

3.33

5,304

161

3.03

Total Interest Bearing Liabilities

2,028,369

838

0.16

1,987,108

848

0.17

1,977,427

856

0.17

1,972,343

948

0.19

1,861,899

1,181

0.25

1,991,454

3,490

0.18

1,717,443

4,871

0.28

Noninterest Bearing Deposits

1,621,432

1,564,892

1,515,726

1,389,821

1,356,104

1,523,717

1,254,214

Other Liabilities

114,657

112,707

107,801

111,050

74,605

111,567

72,400

Total Liabilities

3,764,458

3,664,707

3,600,954

3,473,214

3,292,608

3,626,738

3,044,057

Temporary Equity

13,339

20,446

26,355

21,977

16,154

20,505

9,701

SHAREOWNERS' EQUITY:

350,140

341,460

329,040

326,330

343,674

336,821

337,313

Total Liabilities, Temporary

Equity and

Shareowners' Equity

4,127,937

4,026,613

3,956,349

3,821,521

3,652,436

3,984,064

3,391,071

Interest Rate Spread

24,790

2.52

27,750

2.91

26,064

2.81

24,606

2.77

25,082

2.88

103,210

2.75

101,756

3.18

Interest Income and Rate Earned

(1)

25,628

2.68

28,598

3.07

26,920

2.98

25,554

2.96

26,263

3.14

106,700

2.92

106,627

3.46

Interest Expense and Rate Paid

(2)

838

0.09

848

0.09

856

0.09

948

0.11

1,181

0.14

3,490

0.10

4,871

0.16

Net Interest Margin

24,790

2.60

27,750

2.98

26,064

2.89

24,606

2.85

25,082

3.00

103,210

2.83

101,756

3.30

(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.

CAPITAL CITY HOME

LOANS

MORTGAGE BANKING ACTIVITY

Unaudited

Three Months Ended

Twelve Months

Ended

(Dollars in thousands)

Dec 31, 2021

Sep 30, 2021

Dec 31, 2020

Dec 31, 2021

Dec 31, 2020

Net Interest Income

(30)

(129)

184

Mortgage Banking Fees

9,800

12,293

17,409

52,055

61,455

Other

470

455

363

1,776

950

Total Noninterest Income

10,270

12,748

17,772

53,831

62,405

Salaries

6,643

7,600

10,398

33,057

31,774

Other Associate Benefits

202

215

200

848

645

Total Compensation

6,845

7,815

10,598

33,905

32,419

Occupancy, Net

743

849

920

3,307

2,764

Other

1,312

1,292

1,751

5,064

4,798

Total Noninterest Expense

8,900

9,956

13,269

42,276

39,981

Operating Profit

1,405

2,762

4,546

11,426

22,608

Key Performance Metrics

Total Loans Closed

294,237

360,167

520,039

1,523,858

1,659,719

Total Loans Closed - Mix

Purchase

76%

71%

61%

71%

60%

Refinance

24%

29%

39%

29%

40%