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 22, 2024

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 22, 2024, Capital City Bank Group, Inc. (“CCBG”) issued an earnings press release

reporting CCBG’s financial

results for the three-month period ended March 31, 2024.

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

incorporated herein by reference.

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

the Exhibits attached hereto, shall not be deemed

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

shall it be deemed incorporated by reference in any

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

in such filing.

Item 9.01.

Financial Statements and Exhibits.

(d)

Exhibits

Item No.

Description of Exhibit

99.1

Press release, dated April 22, 2024.

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 22, 2024

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 22, 2024

ex991

Capital City Bank Group, Inc.

Reports First Quarter 2024

Results

TALLAHASSEE, Fla.

(April 22, 2024) – Capital City Bank Group, Inc. (NASDAQ: CCBG) today

reported net income attributable

to common shareowners of $12.6 million, or $0.74 per diluted share, for the first

quarter of 2024

compared to $11.7 million, or $0.70

per diluted share, for the fourth quarter of 2023, and $13.7 million, or $0.

80 per diluted share, for the first quarter of 2023.

QUARTER HIGHLIGHTS (1

Quarter 2024

versus 4

Quarter 2023)

Income Statement

●

Tax-equivalent

net interest income totaled $38.4 million compared

to $39.3 million for the prior quarter reflective of one less

calendar day and higher deposit cost – total deposit cost increased

19 basis points to 85 basis points – net interest margin

decreased six basis points to 4.01%

●

Stable credit quality metrics and lower loan

growth drove a $1.1

million reduction in credit loss provision

net loan charge-offs

were 22 basis points (annualized) of

average loans – allowance coverage ratio of 1.07%

●

Noninterest income increased

$0.9 million, or 5.5%, due to higher mortgage banking revenues

and wealth management fees

●

Noninterest expense was well controlled

with a $0.2 million, or 0.5%, increase for the quarter

Balance Sheet

●

Loan balances grew $17.4 million, or

0.6% (average), and declined $2.7 million, or 0.1% (end of period)

●

Deposit balances increased by $28.0 million,

or 0.8% (average), and decreased $47.0 million,

or 1.3% (end of period)

●

Tangible

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

increased $0.52, or 2.5% - accumulated other

comprehensive loss remained

stable

●

Repurchased 82,540 shares

of common stock

“Overall, we are pleased with the first quarter as we realized solid earnings

and capital growth,” said William G. Smith, Jr.,

Chairman, President, CEO of Capital City Bank Group.

“Credit quality remained stable, average deposits grew,

and the dividend

increased 5 percent. While the operating environment remains challenging, we

believe we are well positioned and have strategies in

place to achieve a solid year of performance.”

Discussion of Operating Results

Net Interest Income/Net Interest

Margin

Tax-equivalent net

interest income for the first quarter of 2024

totaled $38.4 million, compared to $39.3 million for the fourth

quarter of 2023, and $40.5 million for the first quarter of 2023.

Compared to both prior periods, the decline was primarily

attributable to an increase in deposit interest expense, partially offset

by higher loan interest income.

The increase in deposit interest

expense was primarily attributable to higher average money market

balances and to a lesser extent certificates

of deposit (“CD”)

balances and reflected a combination of re-mix from other deposit categories

and higher rates for these products.

The increase in

loan interest income reflected existing loans re-pricing at higher rates and

new loan volume at higher rates.

Further, the first quarter

of 2024 had one less calendar day compared to the fourth quarter of 2023

and one additional calendar day compared to the first

quarter of 2023.

Our net interest margin for the first quarter of 2024 was 4.01%, a decrease

of six basis points from the fourth quarter of 2023 and a

decrease of three basis points from the first quarter of 2023.

The decrease compared to both prior periods primarily reflected higher

deposit cost related to re-mix within the deposit base and higher rates

paid on deposits, partially offset by higher yields from new

loan volume and loan repricing at higher rates.

For the first quarter of 2024, our cost of funds was 88 basis points, an increase of 15

basis points over the fourth quarter of 2023 and an increase of 53 basis points

over the first quarter of 2023.

Our cost of deposits

(including noninterest bearing accounts) was 85 basis points, 66 basis points,

and 26 basis points, respectively,

for the same periods.

Provision for Credit Losses

We recorded

a provision for credit losses of $0.9 million for the first quarter of 2024

compared to $2.0 million for the fourth quarter

of 2023 and $3.1 million for the first quarter of 2023.

The decrease in the provision compared to both prior periods was primarily

attributable to a lower level of reserves required for new loans, favorable

loan grade migration, and lower loss rates.

We discuss the

allowance for credit losses further below.

Noninterest Income and Noninterest

Expense

Noninterest income for the first quarter of 2024 totaled $18.1 million compared

to $17.2 million for the fourth quarter of 2023 and

$17.8

million for the first quarter of 2023.

The $0.9 million increase over the fourth quarter of 2023 was due to a $0.5 million

increase in mortgage banking revenues and a $0.4 million increase in wealth

management fees.

Compared to the first quarter of

2023, the $0.3 million increase was primarily attributable to higher wealth management

fees of $0.7 million partially offset by lower

other income of $0.3 million.

For both prior period comparisons, the increase in mortgage banking revenues

reflected a higher

volume of rate locks and third-party loan sales.

A combination of higher trust fees, retail brokerage fees, and insurance

commissions drove the increase in wealth management fees over

the fourth quarter of 2023.

Higher retail brokerage fees of $0.4

million and trust fees of $0.2 million drove the increase over the first quarter

of 2023.

The decrease in other income was primarily

due to lower loan servicing income and miscellaneous income.

Noninterest expense for the first quarter of 2024 totaled $40.2 million compared

to $40.0 million for the fourth quarter of 2023 and

$37.7

million for the first quarter of 2023.

The $0.2 million increase over the fourth quarter of 2023 reflected a $0.6 million

increase in compensation expense that was partially offset

by decreases in occupancy expense of $0.1 million and other expense of

$0.3 million.

The increase in compensation expense was primarily attributable to higher

payroll taxes (annual re-set) and 401k plan

matching expense.

Compared to the first quarter of 2023, the $2.5

million increase reflected higher other expense as we realized a

$1.8 million gain from the sale of other real estate (banking offic

e) in the first quarter of 2023.

Further, compensation expense was

$0.9 million higher primarily due to a lower level of realized loan cost (credit

offset to salary expense) due to decreased new loan

production.

Income Taxes

We realized income

tax expense of $3.5 million (effective rate of 23.0%) for the

first quarter of 2024 compared to $2.9 million

(effective rate of 20.3%) for the fourth quarter of 2023

and $3.7 million (effective rate of 21.3%) for the first quarter of

2023.

The

increase in our effective tax rate for the first quarter of 202

compared to both prior periods was primarily due to a lower level of

tax benefit

accrued from an investment in a solar tax credit equity fund.

Absent discrete items or new tax credit investments, we

expect our annual effective tax rate to approximate 23%

for 2024.

Discussion of Financial Condition

Earning Assets

Average earning

assets totaled $3.850 billion for the first quarter of 2024, an increase of $25.6 million,

or 0.7%, over the fourth

quarter of 2023, and a decrease of $213.1 million, or 5.2%, from the first quarter

of 2023.

The variance for both prior period

comparisons was driven by change in deposit balances (see below –

Deposits

Compared to both prior periods, the mix of earning

assets improved as overnight funds were utilized to fund loan growth.

Average loans

held for investment (“HFI”) increased $17.4 million, or 0.6%, over the fourth quarter

of 2023 and $146.2 million, or

5.7%, over the first quarter of 2023.

Compared to both prior periods, the increase was primarily due to an increase in residential

loans partially offset by a decline in consumer loans (primarily

auto).

Period end loans decreased $2.7

million, or 0.1%, from the

fourth quarter of 2023 and increased $74.0 million, or 2.8%, over

the first quarter of 2023.

The decrease from the fourth quarter of

2023 was primarily due to lower consumer (auto) loan portfolio balances

partially offset by growth in residential loans.

Compared

to the first quarter of 2023, the increase reflected growth in residential loans and,

to a lesser extent,

commercial real estate loans

partially offset by lower consumer (auto) loan balances.

Allowance for Credit Losses

At March 31, 2024, the allowance for credit losses for HFI loans totaled $29.3

million compared to $29.9 million at December 31,

2023 and $26.8 million at March 31, 2023.

Activity within the allowance is provided on Page 9.

The decrease in the allowance

from December 31, 2023 was primarily due to favorable loan grade migration,

lower loss rates, and a combination of lower loan

balances and shift in mix within the portfolio.

Compared to March 31, 2023, the increase was primarily driven by loan growth.

March 31, 2024, the allowance represented 1.07% of HFI loans compared

to 1.10% at December 31, 2023, and 1.01% at March 31,

2023.

Credit Quality

Overall credit quality remained stable.

Nonperforming assets (nonaccrual loans and other real estate) totaled $6.8

million at March

31, 2024 compared to $6.2 million at December 31, 2023 and $4.6 million

at March 31, 2023.

At March 31, 2024, nonperforming

assets as a percent of total assets equaled 0.16%, compared to 0.15% at December 31,

2023 and 0.10% at March 31, 2023.

Nonaccrual loans totaled $6.8 million at March 31, 2024, a $0.6 million

increase over December 31, 2023 and a $2.2 million

increase over March 31, 2023.

Further, classified loans totaled $22.3 million

at March 31, 2024, a $0.1 million increase over

December 31, 2023 and a $10.1 million increase over March 31, 2023.

Deposits

Average total

deposits were $3.577 billion for the first quarter of 2024, an increase of $28.0 million,

or 0.8%, over the fourth quarter

of 2023 and a decrease of $240.8 million, or 6.3%, from the first quarter

of 2023.

Compared to the fourth quarter of 2023, the

increase reflected a higher average balance for public funds (municipal

clients - primarily NOW accounts) which typically peak late

in the fourth quarter.

Further, we realized growth in both our money market

and CD balances which reflected a combination of

balances migrating from noninterest bearing and savings accounts,

in addition to receiving new deposits from existing and new

clients.

Compared to the first quarter of 2023, the decrease was primarily attributable

to lower noninterest bearing and savings

accounts, partially offset by increases in money market

and CD balances.

The decrease in noninterest bearing and savings accounts

reflected a combination of consumer/business spend of pandemic related

stimulus funds and rate sensitive clients seeking higher

yields,

partially offset by the aforementioned migration

to higher rate deposit products (money market and CD).

We continue to

closely monitor our cost of deposits and deposit mix as we manage

through this higher interest rate environment.

Liquidity

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

FED funds sold less FED funds purchased) sold

position of $140.5 million in the first quarter of 2024

compared to $99.8 million in the fourth quarter of 2023 and $361.0 million in

the first quarter of 2023.

Compared to the fourth quarter of 2023,

the increase was driven by average deposit growth and investment

portfolio run-off, partially offset by average

loan growth.

Compared to the first quarter of 2023, the decrease was attributable to

lower average deposit balances and growth in our loan portfolio, partially

offset by investment portfolio run-off.

At March 31, 2024, we had the ability to generate approximately $1.

542 billion (excludes overnight funds position of $231 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, 2024, the weighted-average

maturity and duration of our portfolio were 2.76 and 2.39 years, respectively,

and the available-for-sale portfolio had a net

unrealized tax-effected loss of $26.0 million.

Capital

Shareowners’ equity was $448.3 million at March 31, 2024 compared

to $440.6 million at December 31, 2023 and $403.3 million at

March 31, 2023.

For the first three months of 2024, shareowners’ equity was positively impacted by net

income attributable to

shareowners of $12.6 million, net adjustments totaling $0.6 million

related to transactions under our stock compensation plans,

stock compensation accretion of $0.4 million, and a $0.3 million increase

in the fair value of the interest rate swap related to

subordinated debt.

Shareowners’ equity was reduced by a common stock dividend of $3.6 million

($0.21 per share), the repurchase

of stock of $2.3 million (82,540 shares), and a $0.3 million increase in

the net unrealized loss on available for sale securities.

At March 31, 2024, our total risk-based capital ratio was 16.84% compared

to 16.57% at December 31, 2023 and 15.29% at March

31, 2023.

Our common equity tier 1 capital ratio was 13.82%, 13.52%, and 12.40%, respectively,

on these dates.

Our leverage ratio

was 10.45%, 10.30%, and 9.09%, respectively,

on these dates.

At March 31, 2024, all our regulatory capital ratios exceeded the

thresholds

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

Further, our tangible common equity ratio

(non-GAAP financial measure) was 8.53% at March 31, 2024 compared to 8.26% and

7.20% at December 31, 2023 and March 31,

2023,

respectively.

If our unrealized held-to-maturity securities losses of $21.6 million (after-tax)

were recognized in accumulated

other comprehensive loss, our adjusted tangible capital ratio would be

8.01%.

About Capital City Bank Group, Inc.

Capital City Bank Group, Inc. (NASDAQ: CCBG) is one of the largest

publicly traded financial holding companies headquartered

in Florida and has approximately $4.3

billion in assets.

We provide

a full range of banking services, including traditional deposit

and credit services, mortgage banking, asset management, trust, merchant

services, bankcards,

securities brokerage services and

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

and asset protection services.

Our bank

subsidiary, Capital City Bank,

was founded in 1895 and now has 63 banking offices and 104 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: our ability to successfully

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

to our industry; legislative or regulatory changes; adverse

developments in the financial services industry generally,

such as bank failures and any related impact on depositor behavior; the

effects of changes in the level of checking or savings account deposits

and the competition for deposits on our funding costs, net

interest margin and ability to replace maturing deposits and advances,

as necessary; inflation, interest rate, market and monetary

fluctuations; uncertainty in the pricing of residential mortgage loans

that we sell, as well as competition for the mortgage servicing

rights related to these loans and related interest rate risk or price risk resulting

from retaining mortgage servicing rights and the

potential effects of higher interest rates on our loan origination

volumes; the effects of actions taken by governmental agencies

stabilize the recent volatility in the financial system and the effectiveness

of such actions; changes in monetary and fiscal policies of

the U.S. Government; the effects of security breaches and computer

viruses that may affect our computer systems or fraud related

debit card products; the accuracy of our financial statement estimates and

assumptions, including the estimates used for our

allowance for credit losses, deferred tax asset valuation and pension plan;

changes in our liquidity position; changes in accounting

principles, policies, practices or guidelines; the frequency and magnitude

of foreclosure of our loans; the effects of our lack of a

diversified loan portfolio, including the risks of loan segments, geographic

and industry concentrations; the strength of the United

States economy in general and the strength of the local economies in which

we conduct operations; our ability to declare and pay

dividends, the payment of which is subject to our capital requirements; changes

in the securities and real estate markets; structural

changes in the markets for origination, sale and servicing of residential mortgages;

our ability to retain key personnel; the effect of

corporate restructuring, acquisitions or dispositions, including the actual

restructuring and other related charges and the failure to

achieve the expected gains, revenue growth or expense savings from such

corporate restructuring, acquisitions or dispositions; the

effects of natural disasters, harsh weather conditions (including

hurricanes), widespread health emergencies (including pandemics,

such as the COVID-19 pandemic), military conflict, terrorism, civil unrest

or other geopolitical events; our ability to comply with the

extensive laws and regulations to which we are subject, including the

laws for each jurisdiction where we operate; the impact of the

restatement of our previously issued consolidated statements of

cash flows for the years ended December 31, 2021 and 2022 and for

the each of the three month periods ended March 31, 2022 and 2023, six month periods

ended June 30, 2022 and 2023 and nine

month periods ended September 30, 2022 and 2023; any inability to implement

and maintain effective internal control over financial

reporting and/or disclosure control or inability to remediate our existing material

weaknesses in our internal controls deemed

ineffective; the willingness of clients to accept third-party

products and services rather than our products and services and vice versa;

increased competition and its effect on pricing; technological changes;

the cost and effects of cybersecurity incidents or other

failures, interruptions, or security breaches of our systems or those of our

customers or third-party providers; the outcomes of

litigation or regulatory proceedings; negative publicity and the impact on our

reputation; changes in consumer spending and saving

habits; growth and profitability of our noninterest income; the limited trading

activity of our common stock; the concentration of

ownership of our common stock; anti-takeover provisions under

federal and state law as well as our Articles of Incorporation and

our Bylaws; other risks described from time to time in our filings with the Securities and

Exchange Commission; and our ability to

manage the risks involved in the foregoing.

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

ended December 31, 2023, 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

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)

Mar 31, 2024

Dec 31, 2023

Sep 30, 2023

Jun 30, 2023

Mar 31, 2023

Shareowners' Equity (GAAP)

448,314

440,625

419,706

412,422

403,260

Less: Goodwill and Other Intangibles (GAAP)

92,893

92,933

92,973

93,013

93,053

Tangible Shareowners' Equity (non-GAAP)

355,421

347,692

326,733

319,409

310,207

Total Assets (GAAP)

4,259,922

4,304,477

4,138,287

4,391,206

4,401,762

Less: Goodwill and Other Intangibles (GAAP)

92,893

92,933

92,973

93,013

93,053

Tangible Assets (non-GAAP)

4,167,029

4,211,544

4,045,314

4,298,193

4,308,709

Tangible Common Equity Ratio (non-GAAP)

A/B

8.53%

8.26%

8.08%

7.43%

7.20%

Actual Diluted Shares Outstanding (GAAP)

16,947,204

17,000,758

16,997,886

17,025,023

17,049,913

Tangible Book Value

per Diluted Share (non-GAAP)

A/C

20.97

20.45

19.22

18.76

18.19

CAPITAL CITY BANK

GROUP,

INC.

EARNINGS HIGHLIGHTS

Unaudited

Three Months Ended

(Dollars in thousands, except per share data)

Mar 31, 2024

Dec 31, 2023

Mar 31, 2023

EARNINGS

Net Income Attributable to Common Shareowners

12,557

11,720

13,709

Diluted Net Income Per Share

0.74

0.70

0.80

PERFORMANCE

Return on Average Assets (annualized)

1.21

1.12

1.26

Return on Average Equity (annualized)

11.07

10.69

13.76

Net Interest Margin

4.01

4.07

4.04

Noninterest Income as % of Operating Revenue

32.06

30.46

30.53

Efficiency Ratio

71.06

70.82

64.67

CAPITAL ADEQUACY

Tier 1 Capital

15.67

15.37

14.23

Total Capital

16.84

16.57

15.29

Leverage

10.45

10.30

9.09

Common Equity Tier 1

13.82

13.52

12.40

Tangible Common Equity

(1)

8.53

8.26

7.20

Equity to Assets

10.52

10.24

9.16

ASSET QUALITY

Allowance as % of Non-Performing Loans

431.46

479.70

584.18

Allowance as a % of Loans HFI

1.07

1.10

1.01

Net Charge-Offs as % of Average Loans HFI

0.22

0.23

0.24

Nonperforming Assets as % of Loans HFI and OREO

0.25

0.23

0.17

Nonperforming Assets as % of Total Assets

0.16

0.15

0.10

STOCK PERFORMANCE

High

31.34

32.56

36.86

Low

26.59

26.12

28.18

27.70

29.43

29.31

Average Daily Trading Volume

31,023

33,297

41,737

(1)

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

refer to Page 6.

CAPITAL CITY BANK GROUP, INC.

CONSOLIDATED STATEMENT

OF FINANCIAL CONDITION

Unaudited

2024

2023

(Dollars in thousands)

First Quarter

Fourth Quarter

Third Quarter

Second Quarter

First Quarter

ASSETS

Cash and Due From Banks

73,642

83,118

72,379

83,679

84,549

Funds Sold and Interest Bearing Deposits

231,047

228,949

95,119

285,129

303,403

Total Cash and Cash Equivalents

304,689

312,067

167,498

368,808

387,952

Investment Securities Available for Sale

327,338

337,902

334,052

386,220

402,943

Investment Securities Held to Maturity

603,386

625,022

632,076

641,398

651,755

Other Equity Securities

3,445

3,450

3,585

1,703

1,883

Total Investment Securities

934,169

966,374

969,713

1,029,321

1,056,581

Loans Held for Sale

24,705

28,211

34,013

44,659

28,475

Loans Held for Investment ("HFI"):

Commercial, Financial, & Agricultural

218,298

225,190

221,704

227,219

236,263

Real Estate - Construction

202,692

196,091

197,526

226,404

253,903

Real Estate - Commercial

823,690

825,456

828,234

831,285

798,438

Real Estate - Residential

1,012,791

1,001,257

966,512

893,384

847,697

Real Estate - Home Equity

214,617

210,920

203,606

203,142

206,931

Consumer

254,168

270,994

285,122

295,646

305,324

Other Loans

3,789

2,962

1,401

5,425

7,660

Overdrafts

1,127

1,048

1,076

1,007

931

Total Loans Held for Investment

2,731,172

2,733,918

2,705,181

2,683,512

2,657,147

Allowance for Credit Losses

(29,329)

(29,941)

(29,083)

(28,243)

(26,808)

Loans Held for Investment, Net

2,701,843

2,703,977

2,676,098

2,655,269

2,630,339

Premises and Equipment, Net

81,452

81,266

81,677

82,062

82,055

Goodwill and Other Intangibles

92,893

92,933

92,973

93,013

93,053

Other Real Estate Owned

Other Assets

120,170

119,648

116,314

118,073

123,294

Total Other Assets

294,516

293,848

290,965

293,149

298,415

Total Assets

4,259,922

4,304,477

4,138,287

4,391,206

4,401,762

LIABILITIES

Deposits:

Noninterest Bearing Deposits

1,361,939

1,377,934

1,472,165

1,520,134

1,601,388

NOW Accounts

1,212,452

1,327,420

1,092,996

1,269,839

1,242,721

Money Market Accounts

398,308

319,319

304,323

321,743

271,880

Savings Accounts

530,782

547,634

571,003

590,245

617,310

Certificates of Deposit

151,320

129,515

99,958

86,905

90,621

Total Deposits

3,654,801

3,701,822

3,540,445

3,788,866

3,823,920

Repurchase Agreements

23,477

26,957

22,910

22,619

4,429

Other Short-Term Borrowings

8,409

8,384

18,786

28,054

22,203

Subordinated Notes Payable

52,887

Other Long-Term Borrowings

265

315

364

414

463

Other Liabilities

65,181

66,080

75,585

77,192

85,878

Total Liabilities

3,805,020

3,856,445

3,710,977

3,970,032

3,989,780

Temporary Equity

6,588

7,407

7,604

8,752

8,722

SHAREOWNERS' EQUITY

Common Stock

169

170

Additional Paid-In Capital

34,861

36,326

36,182

36,853

37,512

Retained Earnings

435,364

426,275

418,030

408,771

397,654

Accumulated Other Comprehensive Loss, Net of Tax

(22,080)

(22,146)

(34,676)

(33,372)

(32,076)

Total Shareowners' Equity

448,314

440,625

419,706

412,422

403,260

Total Liabilities, Temporary Equity and Shareowners' Equity

4,259,922

4,304,477

4,138,287

4,391,206

4,401,762

OTHER BALANCE SHEET DATA

Earning Assets

3,921,093

3,957,452

3,804,026

4,042,621

4,045,607

Interest Bearing Liabilities

2,377,900

2,412,431

2,163,227

2,372,706

2,302,514

Book Value Per Diluted Share

26.45

25.92

24.69

24.21

23.65

Tangible Book Value

Per Diluted Share

(1)

20.97

20.45

19.22

18.76

18.19

Actual Basic Shares Outstanding

16,929

16,950

16,958

16,992

17,022

Actual Diluted Shares Outstanding

16,947

17,001

16,998

17,025

17,050

(1)

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

information, including a reconciliation to GAAP, refer to Page 6.

CAPITAL CITY BANK

GROUP,

INC.

CONSOLIDATED STATEMENT

OF OPERATIONS

Unaudited

2024

2023

(Dollars in thousands, except per share data)

First

Quarter

Fourth

Quarter

Third

Quarter

Second

Quarter

First

Quarter

INTEREST INCOME

Loans, including Fees

40,683

40,407

39,344

37,608

34,891

Investment Securities

4,244

4,392

4,561

4,815

4,924

Federal Funds Sold and Interest Bearing Deposits

1,893

1,385

1,848

2,782

4,111

Total Interest Income

46,820

46,184

45,753

45,205

43,926

INTEREST EXPENSE

Deposits

7,594

5,872

5,214

4,008

2,488

Repurchase Agreements

201

199

190

115

Other Short-Term Borrowings

310

440

336

452

Subordinated Notes Payable

628

627

625

604

571

Other Long-Term Borrowings

Total Interest Expense

8,465

7,013

6,473

5,068

3,526

Net Interest Income

38,355

39,171

39,280

40,137

40,400

Provision for Credit Losses

920

2,025

2,393

2,197

3,099

Net Interest Income after Provision for Credit Losses

37,435

37,146

36,887

37,940

37,301

NONINTEREST INCOME

Deposit Fees

5,250

5,304

5,456

5,326

5,239

Bank Card Fees

3,620

3,713

3,684

3,795

3,726

Wealth Management Fees

4,682

4,276

3,984

4,149

3,928

Mortgage Banking Revenues

2,878

2,327

1,839

3,363

2,871

Other

1,667

1,537

1,765

3,334

1,994

Total Noninterest Income

18,097

17,157

16,728

19,967

17,758

NONINTEREST EXPENSE

Compensation

24,407

23,822

23,003

23,438

23,524

Occupancy, Net

6,994

7,098

6,980

6,820

6,762

Other

8,770

9,038

9,122

10,027

7,389

Total Noninterest Expense

40,171

39,958

39,105

40,285

37,675

OPERATING PROFIT

15,361

14,345

14,510

17,622

17,384

Income Tax Expense

3,536

2,909

3,004

3,417

3,710

Net Income

11,825

11,436

11,506

14,205

13,674

Pre-Tax Loss (Income) Attributable to Noncontrolling Interest

732

284

1,149

(31)

NET INCOME ATTRIBUTABLE

COMMON SHAREOWNERS

12,557

11,720

12,655

14,174

13,709

PER COMMON SHARE

Basic Net Income

0.74

0.69

0.75

0.83

0.81

Diluted Net Income

0.74

0.70

0.74

0.83

0.80

Cash Dividend

0.21

0.20

0.18

AVERAGE

Basic

16,951

16,947

16,985

17,002

17,016

Diluted

16,969

16,997

17,025

17,035

17,045

CAPITAL CITY BANK GROUP,

INC.

ALLOWANCE FOR CREDIT LOSSES ("ACL")

AND CREDIT QUALITY

Unaudited

2024

2023

(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

29,941

29,083

28,243

26,808

25,068

Transfer from Other (Assets) Liabilities

(50)

Provision for Credit Losses

932

2,354

1,993

1,922

3,260

Net Charge-Offs (Recoveries)

1,494

1,562

1,153

487

1,520

Balance at End of Period

29,329

29,941

29,083

28,243

26,808

As a % of Loans HFI

1.07%

1.10%

1.08%

1.05%

1.01%

As a % of Nonperforming Loans

431.46%

479.70%

619.58%

426.44%

584.18%

ACL - UNFUNDED COMMITMENTS

Balance at Beginning of Period

3,191

3,502

3,120

2,833

2,989

Provision for Credit Losses

(70)

(311)

382

287

(156)

Balance at End of Period

(1)

3,121

3,191

3,502

3,120

2,833

ACL - DEBT SECURITIES

Provision for Credit Losses

(18)

(12)

(5)

CHARGE-OFFS

Commercial, Financial and Agricultural

282

217

164

Real Estate - Commercial

120

Real Estate - Residential

Real Estate - Home Equity

Consumer

1,550

1,689

1,340

993

1,732

Overdrafts

638

602

659

894

634

Total Charge-Offs

2,563

2,587

2,075

1,980

2,650

RECOVERIES

Commercial, Financial and Agricultural

Real Estate - Construction

Real Estate - Commercial

204

Real Estate - Residential

132

Real Estate - Home Equity

131

Consumer

410

433

418

514

571

Overdrafts

353

442

376

633

373

Total Recoveries

1,069

1,025

922

1,493

1,130

NET CHARGE-OFFS (RECOVERIES)

1,494

1,562

1,153

487

1,520

Net Charge-Offs as a % of Average Loans

HFI

(2)

0.22%

0.23%

0.17%

0.07%

0.24%

CREDIT QUALITY

Nonaccruing Loans

6,798

6,242

4,694

6,623

4,589

Other Real Estate Owned

Total Nonperforming Assets ("NPAs")

6,799

6,243

4,695

6,624

4,602

Past Due Loans 30-89 Days

5,392

6,854

5,577

4,207

5,061

Classified Loans

22,305

22,203

21,812

14,973

12,179

Nonperforming Loans as a % of Loans HFI

0.25%

0.23%

0.17%

0.25%

0.17%

NPAs as a % of Loans HFI and Other Real Estate

0.25%

0.23%

0.17%

0.25%

0.17%

NPAs as a % of

Total Assets

0.16%

0.15%

0.11%

0.15%

0.10%

(1)

Recorded in other liabilities

(2)

Annualized

CAPITAL CITY BANK GROUP,

INC.

AVERAGE

BALANCE AND INTEREST RATES

Unaudited

First Quarter 2024

Fourth Quarter 2023

Third Quarter 2023

Second Quarter 2023

First Quarter 2023

(Dollars in thousands)

Average

Balance

Interest

Average

Rate

Average

Balance

Interest

Average

Rate

Average

Balance

Interest

Average

Rate

Average

Balance

Interest

Average

Rate

Average

Balance

Interest

Average

Rate

ASSETS:

Loans Held for Sale

27,314

563

5.99

49,790

817

6.50

62,768

971

6.14

54,350

800

5.90

55,110

644

4.74

Loans Held for Investment

(1)

2,728,629

40,196

5.95

2,711,243

39,679

5.81

2,672,653

38,455

5.71

2,657,693

36,890

5.55

2,582,395

34,342

5.39

Investment Securities

Taxable Investment Securities

952,328

4,239

1.78

962,322

4,389

1.81

1,002,547

4,549

1.80

1,041,202

4,803

1.84

1,061,372

4,911

1.86

Tax-Exempt Investment Securities

(1)

856

4.34

862

4.32

2,456

2.66

2,656

2.47

2,840

2.36

Total Investment Securities

953,184

4,248

1.78

963,184

4,396

1.82

1,005,003

4,566

1.81

1,043,858

4,820

1.84

1,064,212

4,929

1.86

Federal Funds Sold and Interest Bearing Deposits

140,488

1,893

5.42

99,763

1,385

5.51

136,556

1,848

5.37

218,902

2,782

5.10

360,971

4,111

4.62

Total Earning Assets

3,849,615

46,900

4.90

3,823,980

46,277

4.80

3,876,980

45,840

4.69

3,974,803

45,292

4.57

4,062,688

44,026

4.39

Cash and Due From Banks

75,763

76,681

75,941

75,854

74,639

Allowance for Credit Losses

(30,030)

(29,998)

(29,172)

(27,893)

(25,637)

Other Assets

295,275

296,114

295,106

297,837

300,175

Total Assets

4,190,623

4,166,777

4,218,855

4,320,601

4,411,865

LIABILITIES:

Noninterest Bearing Deposits

1,344,188

1,416,825

1,474,574

1,539,877

1,601,750

NOW Accounts

1,201,032

4,497

1.51

1,138,461

3,696

1.29

1,125,171

3,489

1.23

1,200,400

3,038

1.01

1,228,928

2,152

0.71

Money Market Accounts

353,591

1,985

2.26

318,844

1,421

1.77

322,623

1,294

1.59

288,466

747

1.04

267,573

208

0.31

Savings Accounts

539,374

188

0.14

557,579

202

0.14

579,245

200

0.14

602,848

120

0.08

629,388

0.05

Time Deposits

138,328

924

2.69

116,797

553

1.88

95,203

231

0.96

87,973

103

0.47

89,675

0.24

Total Interest Bearing Deposits

2,232,325

7,594

1.37

2,131,681

5,872

1.09

2,122,242

5,214

0.97

2,179,687

4,008

0.74

2,215,564

2,488

0.46

Total Deposits

3,576,513

7,594

0.85

3,548,506

5,872

0.66

3,596,816

5,214

0.58

3,719,564

4,008

0.43

3,817,314

2,488

0.26

Repurchase Agreements

25,725

201

3.14

26,831

199

2.94

25,356

190

2.98

17,888

115

2.58

9,343

0.37

Other Short-Term Borrowings

3,758

4.16

16,906

310

7.29

24,306

440

7.17

17,834

336

7.54

37,766

452

4.86

Subordinated Notes Payable

52,887

628

4.70

52,887

627

4.64

52,887

625

4.62

52,887

604

4.52

52,887

571

4.32

Other Long-Term Borrowings

281

4.80

336

4.72

387

4.73

431

4.80

480

4.80

Total Interest Bearing Liabilities

2,314,976

8,465

1.47

2,228,641

7,013

1.25

2,225,178

6,473

1.15

2,268,727

5,068

0.90

2,316,040

3,526

0.62

Other Liabilities

68,295

78,772

83,099

84,305

81,206

Total Liabilities

3,727,459

3,724,238

3,782,851

3,892,909

3,998,996

Temporary Equity

7,150

7,423

8,424

8,935

8,802

SHAREOWNERS' EQUITY:

456,014

435,116

427,580

418,757

404,067

Total Liabilities, Temporary

Equity and Shareowners' Equity

4,190,623

4,166,777

4,218,855

4,320,601

4,411,865

Interest Rate Spread

38,435

3.43

39,264

3.55

39,367

3.54

40,224

3.67

40,500

3.77

Interest Income and Rate Earned

(1)

46,900

4.90

46,277

4.80

45,840

4.69

45,292

4.57

44,026

4.39

Interest Expense and Rate Paid

(2)

8,465

0.88

7,013

0.73

6,473

0.66

5,068

0.51

3,526

0.35

Net Interest Margin

38,435

4.01

39,264

4.07

39,367

4.03

40,224

4.06

40,500

4.04

(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.