• Capital City Bank Group, Inc. Reports First Quarter 2023 Results

    المصدر: Nasdaq GlobeNewswire / 24 أبريل 2023 07:00:01   America/New_York

    TALLAHASSEE, Fla., April 24, 2023 (GLOBE NEWSWIRE) -- Capital City Bank Group, Inc. (NASDAQ: CCBG) today reported net income attributable to common shareowners of $15.0 million, or $0.88 per diluted share, for the first quarter of 2023 compared to $11.7 million, or $0.68 per diluted share, for the fourth quarter of 2022, and $8.5 million, or $0.50 per diluted share, for the first quarter of 2022.

    QUARTER HIGHLIGHTS (1st Quarter 2023 versus 4th Quarter 2022)

    • Strong growth in net interest income of 6% - net interest margin percentage grew 28 basis points to 4.04% - deposit interest expense was well controlled at 26 basis points (total deposits) and 46 basis points (interest bearing deposits)
    • Loan growth of $143 million, or 5.9% (average) and $112 million, or 4.4% (end of period)
    • Average quarterly deposit growth of $14 million, or 0.4%, and a decline of $115 million, or 2.9%, in period end balance, which reflected a normal seasonal reduction of $88 million in public fund balances
    • Continued strong credit quality metrics – allowance coverage ratio increased to 1.01%
    • Noninterest income increased $1.3 million, or 6.1%, due to higher mortgage banking revenues at Capital City Home Loans (“CCHL”)
    • Noninterest expense decreased $1.8 million, or 4.3%, and reflected no pension settlement expense for the quarter compared to $1.8 million for the prior quarter – expenses (excluding pension settlement expense) were favorably impacted by a $1.8 million gain from the sale of a banking office that was offset by higher payroll taxes (annual re-set), performance-based compensation, and the addition of two new offices during the first quarter
    • Tangible book value per share increased $1.00, or 5.7%, primarily due to strong earnings and a favorable valuation adjustment for available for sale securities

    “The strength and flexibility of our balance sheet – particularly the diversity and granularity of our core deposit franchise – was evident during a volatile quarter for the industry,” said William G. Smith, Jr., Chairman, President, and CEO of Capital City Bank Group. “Continued margin expansion and loan growth were the primary drivers of our strong performance, which resulted in tangible book value per share growth of 5.7%. While there remains uncertainty around the possibility of a near-term recession or economic slowing, I feel good about our positioning and optimistic about our full-year performance.” 

    Discussion of Operating Results

    Net Interest Income/Net Interest Margin

    Tax-equivalent net interest income for the first quarter of 2023 totaled $40.5 million, compared to $38.2 million for the fourth quarter of 2022, and $24.8 million for the first quarter of 2022. Compared to both prior periods, the increase reflected strong loan growth and higher interest rates across a majority of our earning assets, partially offset by higher deposit costs.  

    Our net interest margin for the first quarter of 2023 was 4.04%, an increase of 28 basis points over the fourth quarter of 2022 and 149 basis points over the first quarter of 2022, both driven by higher interest rates and an overall improved earning asset mix. For the first quarter of 2023, our cost of funds was 35 basis points, an increase of four basis points over the fourth quarter of 2022 and 27 basis points over the first quarter of 2022. Our cost of interest-bearing deposits was 46 basis points, 35 basis points, and 4 basis points, respectively, for the same periods. Our total cost of deposits (including noninterest bearing accounts) was 26 basis points, 20 basis points, and 2 basis points, respectively, for the same periods.        

    Provision for Credit Losses

    We recorded a provision for credit losses of $3.1 million for the first quarter of 2023 compared to $3.5 million for the fourth quarter of 2022 and no provision for the first quarter of 2022. The decrease in the provision compared to the fourth quarter of 2022 was primarily attributable to a lower level of loan growth. The credit loss provision for the first quarter of 2022 generally reflected lower required reserves needed post-pandemic. We discuss the allowance for credit losses further below. 

    Noninterest Income and Noninterest Expense

    Noninterest income for the first quarter of 2023 totaled $22.2 million compared to $21.0 million for the fourth quarter of 2022 and $25.8 million for the first quarter of 2022.   The $1.2 million increase over the fourth quarter of 2022 was primarily attributable to higher mortgage banking revenues at CCHL of $1.5 million partially offset by lower deposit fees $0.3 million. The increase in mortgage banking revenues reflected a higher level of rate locks and gain on sale margin.   The decrease in deposit fees was partially attributable to two less processing days in the first quarter. Compared to the first quarter of 2022, the $3.6 million decrease reflected lower wealth management fees of $2.1 million and mortgage banking revenues of $1.9 million, partially offset by higher other income of $0.5 million. The decrease in wealth management fees was due to lower insurance commission revenues which reflected higher than normal revenues in the first quarter of 2022 related to the closing of several large insurance policies. The decline in mortgage banking revenues was attributable to a lower level of rate locks and gain on sale margin. Additional information on our mortgage banking operation is provided in our first quarter investor presentation. The increase in other income was primarily due to higher loan servicing income and miscellaneous income.   

    Noninterest expense for the first quarter of 2023 totaled $40.5 million compared to $42.3 million for the fourth quarter of 2022 and $39.2 million for the first quarter of 2022. Compared to the fourth quarter of 2022, the $1.8 million decrease reflected lower other expense of $2.4 million that was partially offset by an increase in occupancy expense of $0.5 million and compensation expense of $0.1 million. The reduction in other expense reflected lower other real estate expense of $1.6 million which was due to a $1.8 million gain from the sale of a banking office. Further, pension expense (non-service-related component) for the first quarter of 2023 totaled $0.2 million compared to $1.1 million for the fourth quarter of 2022 which included a $1.8 million pension settlement charge. The increase in occupancy expense reflected higher expenses related to three recently opened full-service offices and the re-location of one office.   The slight increase in compensation expense reflected an increase in salary expense of $0.5 million due to higher payroll taxes (annual re-set) that was partially offset by a decrease in associate benefit expense of $0.4 million due to lower pension plan service cost.   Compared to the first quarter of 2022, the $1.3 million increase reflected increases in compensation expense of $0.8 million and occupancy expense of $0.7 million that were partially off by a decrease in other expense of $0.2 million. The increase in compensation expense reflected an increase of $1.0 million in salary expense that was partially offset by a $0.2 million decrease in associate benefit expense. The addition of banking offices and staffing in new markets drove the variance in salary and occupancy expenses. The decrease in associate benefit expense was primarily due to a decrease in pension service cost of $0.7 million that was partially offset by an increase in stock-based compensation expense of $0.4 million.

    Income Taxes

    We realized income tax expense of $4.1 million (effective rate of 21.7%) for the first quarter of 2023 compared to $2.6 million (effective rate of 19.6%) for the fourth quarter of 2022 and $2.2 million (effective rate of 19.8%) for the first quarter of 2022. A discrete tax item of $0.4 million related our SERP plan favorably impacted the effective tax rate for the fourth quarter of 2022. Absent discrete items, we expect our annual effective tax rate to approximate 21%-22% in 2023. The increase in the effective tax rate for 2023 reflects a lower level of pre-tax income from CCHL in relation to our consolidated income as the non-controlling interest adjustment for CCHL is accounted for as a permanent tax adjustment.

    Discussion of Financial Condition

    Earning Assets

    Average earning assets totaled $4.063 billion for the first quarter of 2023, an increase of $30.0 million, or 0.7%, over the fourth quarter of 2022, and an increase of $123.9 million, or 3.1%, over the first quarter of 2022. The increase over both prior periods was primarily driven by higher deposit balances (see below – Funding). The mix of earning assets continues to improve driven by strong loan growth.

    Average loans held for investment (“HFI”) increased $143.0 million, or 5.9%, over the fourth quarter of 2022 and $618.8 million, or 31.5%, over the first quarter of 2022. Period end loans increased $111.7 million, or 4.4%, over the fourth quarter of 2022 and $651.4 million, or 32.8%, over the first quarter of 2022.   Compared to the fourth quarter of 2022, a majority of the increase was realized in the residential real estate category, and to a lesser extent, the construction and commercial real estate mortgage categories. Compared to the first quarter of 2022, loan growth was broad based, with increases realized in all categories except consumer loans.      

    Allowance for Credit Losses

    At March 31, 2023, the allowance for credit losses for HFI loans totaled $26.5 million compared to $24.7 million at December 31, 2022 and $20.8 million at March 31, 2022. Activity within the allowance is provided on Page 9. The increase in the allowance was driven primarily by loan growth. At March 31, 2023, the allowance represented 1.01% of HFI loans compared to 0.98% at December 31, 2022, and 1.05% at March 31, 2022.

    Credit Quality

    Overall credit quality remains stable. Nonperforming assets (nonaccrual loans and other real estate) totaled $4.6 million at March 31, 2023 compared to $2.7 million at December 31, 2022 and $2.7 million at March 31, 2022.   At March 31, 2023, the increase was primarily due to the addition of one large business loan relationship totaling $1.8 million to nonaccrual status – it is in the process of collection and is adequately secured and reserved for. At March 31, 2023, nonperforming assets as a percent of total assets equaled 0.10%, compared to 0.06% at December 31, 2022 and 0.06% at March 31, 2022.   Nonaccrual loans totaled $4.6 million at March 31, 2023, a $2.3 million increase over December 31, 2022 and a $1.9 million increase over March 31, 2022.   Further, classified loans totaled $12.2 million at March 31, 2023, a $7.2 million decrease from December 31, 2022 and a $10.2 million decrease from March 31, 2022.   

    Deposits

    Average total deposits were $3.817 billion for the first quarter of 2023, an increase of $14.3 million, or 0.4%, over the fourth quarter of 2022 and $103.3 million, or 2.8%, over the first quarter of 2022.  Compared to the fourth quarter of 2022, the increase reflected higher NOW account balances, primarily due to a seasonal increase in our public fund deposits that occurred late in the fourth quarter of 2022.  Compared to the first quarter of 2022, we experienced strong growth in our NOW accounts, and to a lesser degree, our savings accounts.

    Period end total deposits declined $115.4 million from the fourth quarter of 2022, and reflected lower balances in noninterest bearing accounts, NOW accounts, and savings accounts, partially offset by slight growth in money market accounts and certificates of deposit. The $52.2 million decline in noninterest bearing accounts was largely due to the migration of two large commercial clients to an interest-bearing NOW account, in addition to clients seeking a higher yielding investment account at Capital City Investments (approximately $30 million, predominantly higher balance clients). The $47.8 million decline in the NOW account balance was largely driven by an anticipated seasonal decline in public fund balances of $66 million, partially offset by the previously mentioned migration of two clients from noninterest bearing accounts. The $20.1 million decline in the savings account balance was primarily attributable to clients seeking higher yielding investment products outside the Bank. The $4.5 million increase in the money market account balance occurred also due to some migration from noninterest bearing accounts, in addition to growth in our new markets which offered a promotional rate. We continue to closely monitor our cost of deposits and deposit mix as we manage through this rising rate environment. Additional information on the profile of our deposit base is provided in a supplement (Exhibit 99.2) to this release.

    Liquidity

    The Bank maintained an average net overnight funds (deposits with banks plus FED funds sold less FED funds purchased) sold position of $361.0 million in the first quarter of 2023 compared to $469.4 million in the fourth quarter of 2022. The declining overnight funds position reflected growth in average loans.

    At March 31, 2023, we had the ability to generate approximately $1.428 billion (excludes overnight funds position of $303 million) in additional liquidity through various sources including various federal funds purchased lines, Federal Home Loan Bank borrowings, the Federal Reserve Discount Window, and through brokered deposits.  

    We also view our investment portfolio as a liquidity source and have the option to pledge securities in our portfolio as collateral for borrowings or deposits, and/or to sell selected securities.  Our portfolio consists of debt issued by the U.S. Treasury, U.S. governmental agencies, municipal governments, and corporate entities.  At March 31, 2023, the weighted-average maturity and duration of our portfolio were 3.34 years and 2.99 years, respectively, and the available-for-sale portfolio had a net unrealized pre-tax loss of $35.0 million.

    Additional information on our liquidity and investment portfolio is included in a supplement (Exhibit 99.2) to this release.

    Capital

    Shareowners’ equity was $411.2 million at March 31, 2023 compared to $394.0 million at December 31, 2022 and $372.1 million at March 31, 2022.   For the first three months of 2023, shareowners’ equity was positively impacted by net income attributable to common shareowners of $15.0 million, a $5.6 million decrease in the unrealized loss on investment securities, the issuance of stock of $1.8 million, and stock compensation accretion of $0.5 million.   Shareowners’ equity was reduced by common stock dividends of $3.1 million ($0.18 per share), the repurchase of stock of $0.8 million (25,000 shares), net adjustments totaling $1.2 million related to transactions under our stock compensation plans, and a $0.6 million decrease in the fair value of the interest rate swap related to subordinated debt.

    At March 31, 2023, our total risk-based capital ratio was 15.53% compared to 15.52% at December 31, 2022 and 16.98% at March 31, 2022. Our common equity tier 1 capital ratio was 12.68%, 12.64%, and 13.77%, respectively, on these dates. Our leverage ratio was 9.28%, 9.06%, and 8.78%, respectively, on these dates. At March 31, 2023, all 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 7.37% at March 31, 2023 compared to 6.79% and 6.61% at December 31, 2022 and March 31, 2022, respectively. If our unrealized HTM securities losses of $29.5 million (after-tax) were recognized in accumulated other comprehensive loss, our adjusted tangible capital ratio would be 6.69%.

    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 $4.4 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 58 banking offices and 101 ATMs/ITMs in Florida, Georgia and Alabama. For more information about Capital City Bank Group, Inc., visit www.ccbg.com.

    FORWARD-LOOKING STATEMENTS

    Forward-looking statements in this Press Release are based on current plans and expectations that are subject to uncertainties and risks, which could cause our future results to differ materially. The words “may,” “could,” “should,” “would,” “believe,” “anticipate,” “estimate,” “expect,” “intend,” “plan,” “target,” “vision,” “goal,” and similar expressions are intended to identify forward-looking statements. The following factors, among others, could cause our actual results to differ: our ability to successfully manage credit risk, interest rate risk, liquidity risk, and other risks inherent to our industry; legislative or regulatory changes; adverse developments in the financial services industry generally, such as the recent 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; the effects of actions taken by governmental agencies to stabilize the financial system and the effectiveness of such actions; changes in monetary and fiscal policies of the U.S. Government; inflation, interest rate, market and monetary fluctuations; the effects of security breaches and computer viruses that may affect our computer systems or fraud related to 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; 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 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 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 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, 2022, 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
    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, 2023Dec 31, 2022Sep 30, 2022Jun 30, 2022Mar 31, 2022
    Shareowners' Equity (GAAP) $411,240 $394,016 $373,165 $371,675 $372,145 
    Less: Goodwill and Other Intangibles (GAAP)  93,053  93,093  93,133  93,173  93,213 
    Tangible Shareowners' Equity (non-GAAP)A 318,187  300,923  280,032  278,502  278,932 
    Total Assets (GAAP)  4,409,742  4,525,958  4,332,671  4,354,297  4,310,045 
    Less: Goodwill and Other Intangibles (GAAP)  93,053  93,093  93,133  93,173  93,213 
    Tangible Assets (non-GAAP)B$4,316,689 $4,432,865 $4,239,538 $4,261,124 $4,216,832 
    Tangible Common Equity Ratio (non-GAAP)A/B 7.37% 6.79% 6.61% 6.54% 6.61%
    Actual Diluted Shares Outstanding (GAAP)C 17,049,913  17,039,401  16,998,177  16,981,614  16,962,362 
    Tangible Book Value per Diluted Share (non-GAAP)A/C$18.66 $17.66 $16.47 $16.40 $16.44 


    CAPITAL CITY BANK GROUP, INC.       
    EARNINGS HIGHLIGHTS       
    Unaudited       
            
      Three Months Ended 
    (Dollars in thousands, except per share data) Mar 31, 2023 Dec 31, 2022 Mar 31, 2022 
    EARNINGS       
    Net Income Attributable to Common Shareowners$14,954$11,664$8,455 
    Diluted Net Income Per Share$0.88$0.68$0.50 
    PERFORMANCE       
    Return on Average Assets 1.37%1.06%0.80%
    Return on Average Equity 15.01 12.16 8.93 
    Net Interest Margin 4.04 3.76 2.55 
    Noninterest Income as % of Operating Revenue 35.52 35.50 51.11 
    Efficiency Ratio 64.48%71.47%77.55%
    CAPITAL ADEQUACY       
    Tier 1 Capital 14.51%14.53%15.98%
    Total Capital 15.53 15.52 16.98 
    Leverage 9.28 9.06 8.78 
    Common Equity Tier 1 12.68 12.64 13.77 
    Tangible Common Equity(1) 7.37 6.79 6.61 
    Equity to Assets 9.33%8.71%8.63%
    ASSET QUALITY       
    Allowance as % of Non-Performing Loans 577.63%1,076.89%760.83%
    Allowance as a % of Loans HFI 1.01 0.98 1.05 
    Net Charge-Offs as % of Average Loans HFI 0.24 0.21 0.16 
    Nonperforming Assets as % of Loans HFI and OREO 0.17 0.11 0.14 
    Nonperforming Assets as % of Total Assets 0.10%0.06%0.06%
    STOCK PERFORMANCE       
    High$36.86$36.23$28.88 
    Low 28.18 31.14 25.96 
    Close$29.31$32.50$26.36 
    Average Daily Trading Volume 41,737 31,894 24,019 
            
    (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          
               
     2023  2022 
    (Dollars in thousands)First Quarter Fourth Quarter Third Quarter Second Quarter First Quarter
    ASSETS          
    Cash and Due From Banks$84,549 $72,114 $72,686 $91,209 $77,963 
    Funds Sold and Interest Bearing Deposits 303,403  528,536  497,679  603,315  790,465 
    Total Cash and Cash Equivalents 387,952  600,650  570,365  694,524  868,428 
               
    Investment Securities Available for Sale 402,943  413,294  416,745  601,405  624,361 
    Investment Securities Held to Maturity 651,755  660,744  676,178  528,258  518,678 
    Other Equity Securities 1,883  10  1,349  900  855 
    Total Investment Securities 1,056,581  1,074,048  1,094,272  1,130,563  1,143,894 
               
    Loans Held for Sale 55,118  54,635  50,304  48,708  50,815 
               
    Loans Held for Investment ("HFI"):          
    Commercial, Financial, & Agricultural 236,263  247,362  246,304  247,902  230,213 
    Real Estate - Construction 253,903  234,519  237,718  225,664  174,293 
    Real Estate - Commercial 798,438  782,557  715,870  699,093  669,110 
    Real Estate - Residential 827,124  721,759  573,963  478,121  368,020 
    Real Estate - Home Equity 207,241  208,120  202,512  194,658  188,174 
    Consumer 305,324  324,450  347,949  359,906  347,785 
    Other Loans 7,660  5,346  20,822  6,854  6,692 
    Overdrafts 931  1,067  1,047  1,455  1,222 
    Total Loans Held for Investment 2,636,884  2,525,180  2,346,185  2,213,653  1,985,509 
    Allowance for Credit Losses (26,507) (24,736) (22,510) (21,281) (20,756)
    Loans Held for Investment, Net 2,610,377  2,500,444  2,323,675  2,192,372  1,964,753 
               
    Premises and Equipment, Net 82,055  82,138  81,736  82,932  82,518 
    Goodwill and Other Intangibles 93,053  93,093  93,133  93,173  93,213 
    Other Real Estate Owned 13  431  13  90  17 
    Other Assets 124,593  120,519  119,173  111,935  106,407 
    Total Other Assets 299,714  296,181  294,055  288,130  282,155 
    Total Assets$4,409,742 $4,525,958 $4,332,671 $4,354,297 $4,310,045 
    LIABILITIES          
    Deposits:          
    Noninterest Bearing Deposits$1,601,388 $1,653,620 $1,737,046 $1,724,671 $1,704,329 
    NOW Accounts 1,242,721  1,290,494  990,021  1,036,757  1,062,498 
    Money Market Accounts 271,880  267,383  292,932  289,337  288,877 
    Savings Accounts 617,310  637,374  646,526  639,594  614,599 
    Certificates of Deposit 90,621  90,446  92,853  95,899  95,204 
    Total Deposits 3,823,920  3,939,317  3,759,378  3,786,258  3,765,507 
               
    Short-Term Borrowings 26,632  56,793  52,271  39,463  30,865 
    Subordinated Notes Payable 52,887  52,887  52,887  52,887  52,887 
    Other Long-Term Borrowings 463  513  562  612  806 
    Other Liabilities 85,878  73,675  84,657  93,319  77,323 
    Total Liabilities 3,989,780  4,123,185  3,949,755  3,972,539  3,927,388 
               
    Temporary Equity 8,722  8,757  9,751  10,083  10,512 
    SHAREOWNERS' EQUITY          
    Common Stock 170  170  170  170  169 
    Additional Paid-In Capital 37,512  37,331  36,234  35,738  35,188 
    Retained Earnings 405,634  393,744  384,964  376,532  370,531 
    Accumulated Other Comprehensive Loss, Net of Tax (32,076) (37,229) (48,203) (40,765) (33,743)
    Total Shareowners' Equity 411,240  394,016  373,165  371,675  372,145 
    Total Liabilities, Temporary Equity and Shareowners' Equity$4,409,742 $4,525,958 $4,332,671 $4,354,297 $4,310,045 
    OTHER BALANCE SHEET DATA          
    Earning Assets$4,051,987 $4,182,399 $3,988,440 $3,996,238 $3,970,684 
    Interest Bearing Liabilities 2,302,514  2,395,890  2,128,052  2,154,549  2,145,736 
    Book Value Per Diluted Share$24.12 $23.12 $21.95 $21.89 $21.94 
    Tangible Book Value Per Diluted Share(1) 18.66  17.66  16.47  16.40  16.44 
    Actual Basic Shares Outstanding 17,022  16,987  16,962  16,959  16,948 
    Actual Diluted Shares Outstanding 17,050  17,039  16,998  16,982  16,962 
    (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          
               
      2023 2022 
    (Dollars in thousands, except per share data) First Quarter Fourth Quarter Third Quarter Second Quarter First Quarter
    INTEREST INCOME          
    Loans, including Fees$34,880$31,916$27,761$24,072 $22,133 
    Investment Securities 4,924 4,847 4,372 3,840  2,896 
    Federal Funds Sold and Interest Bearing Deposits 4,111 4,463 3,231 1,408  409 
    Total Interest Income 43,915 41,226 35,364 29,320  25,438 
    INTEREST EXPENSE          
    Deposits 2,488 1,902 1,052 266  224 
    Short-Term Borrowings 461 690 536 343  192 
    Subordinated Notes Payable 571 522 443 370  317 
    Other Long-Term Borrowings 6 8 6 8  9 
    Total Interest Expense 3,526 3,122 2,037 987  742 
    Net Interest Income 40,389 38,104 33,327 28,333  24,696 
    Provision for Credit Losses 3,130 3,521 2,099 1,542  - 
    Net Interest Income after Provision for Credit Losses 37,259 34,583 31,228 26,791  24,696 
    NONINTEREST INCOME          
    Deposit Fees 5,239 5,536 5,947 5,447  5,191 
    Bank Card Fees 3,726 3,744 3,860 4,034  3,763 
    Wealth Management Fees 3,928 3,649 3,937 4,403  6,070 
    Mortgage Banking Revenues 6,995 5,497 7,116 9,065  8,946 
    Other 2,360 2,546 2,074 1,954  1,848 
    Total Noninterest Income 22,248 20,972 22,934 24,903  25,818 
    NONINTEREST EXPENSE          
    Compensation 25,636 25,565 24,738 25,383  24,856 
    Occupancy, Net 6,762 6,253 6,153 6,075  6,093 
    Other 8,057 10,469 8,919 9,040  8,284 
    Total Noninterest Expense 40,455 42,287 39,810 40,498  39,233 
    OPERATING PROFIT 19,052 13,268 14,352 11,196  11,281 
    Income Tax Expense 4,133 2,599 3,074 2,177  2,235 
    Net Income 14,919 10,669 11,278 9,019  9,046 
    Pre-Tax Loss (Income) Attributable to Noncontrolling Interest 35 995 37 (306) (591)
    NET INCOME ATTRIBUTABLE TO
    COMMON SHAREOWNERS    		$14,954$11,664$11,315$8,713 $8,455 
    PER COMMON SHARE          
    Basic Net Income$0.88$0.69$0.67$0.51 $0.50 
    Diluted Net Income 0.88 0.68 0.67 0.51  0.50 
    Cash Dividend$0.18$0.17$0.17$0.16 $0.16 
    AVERAGE SHARES          
    Basic 17,016 16,963 16,960 16,949  16,931 
    Diluted 17,045 17,016 16,996 16,971  16,946 


    CAPITAL CITY BANK GROUP, INC.          
    ALLOWANCE FOR CREDIT LOSSES ("ACL")        
    AND CREDIT QUALITY          
    Unaudited          
               
      2023  2022 
    (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$24,736 $22,510 $21,281 $20,756 $21,606 
    Provision for Credit Losses 3,291  3,543  1,931  1,670  (79)
    Net Charge-Offs (Recoveries) 1,520  1,317  702  1,145  771 
    Balance at End of Period$26,507 $24,736 $22,510 $21,281 $20,756 
    As a % of Loans HFI 1.01% 0.98% 0.96% 0.96% 1.05%
    As a % of Nonperforming Loans 577.63% 1,076.89% 934.53% 677.57% 760.83%
    ACL - UNFUNDED COMMITMENTS          
    Balance at Beginning of Period 2,989 $3,012 $2,853 $2,976 $2,897 
    Provision for Credit Losses (156) (23) 159  (123) 79 
    Balance at End of Period(1) 2,833  2,989  3,012  2,853  2,976 
    ACL - DEBT SECURITIES          
    Provision for Credit Losses$(5)$1 $9 $(5)$- 
    CHARGE-OFFS          
    Commercial, Financial and Agricultural$164 $129 $2 $1,104 $73 
    Real Estate - Commercial 120  88  1  -  266 
    Real Estate - Home Equity -  160  -  -  33 
    Consumer 1,732  976  770  533  622 
    Overdrafts 634  720  989  660  780 
    Total Charge-Offs$2,650 $2,073 $1,762 $2,297 $1,774 
    RECOVERIES          
    Commercial, Financial and Agricultural$95 $25 $58 $59 $165 
    Real Estate - Construction 1  -  2  -  8 
    Real Estate - Commercial 8  13  8  56  29 
    Real Estate - Residential 57  98  44  115  27 
    Real Estate - Home Equity 25  36  22  67  58 
    Consumer 571  175  260  453  183 
    Overdrafts 373  409  666  402  533 
    Total Recoveries$1,130 $756 $1,060 $1,152 $1,003 
    NET CHARGE-OFFS (RECOVERIES)$1,520 $1,317 $702 $1,145 $771 
    Net Charge-Offs as a % of Average Loans HFI(2) 0.24% 0.21% 0.12% 0.22% 0.16%
    CREDIT QUALITY          
    Nonaccruing Loans$4,589 $2,297 $2,409 $3,141 $2,728 
    Other Real Estate Owned 13  431  13  90  17 
    Total Nonperforming Assets ("NPAs")$4,602 $2,728 $2,422 $3,231 $2,745 
               
    Past Due Loans 30-89 Days$5,061 $7,829 $6,263 $3,554 $3,120 
    Past Due Loans 90 Days or More -  -  -  -  - 
    Classified Loans 12,179  19,342  20,988  19,620  22,348 
               
    Nonperforming Loans as a % of Loans HFI 0.17% 0.09% 0.10% 0.14% 0.14%
    NPAs as a % of Loans HFI and Other Real Estate 0.17% 0.11% 0.10% 0.15% 0.14%
    NPAs as a % of Total Assets 0.10% 0.06% 0.06% 0.07% 0.06%
               
    (1) Recorded in other liabilities          
    (2) Annualized          


    CAPITAL CITY BANK GROUP, INC.                              
    AVERAGE BALANCE AND INTEREST RATES                              
    Unaudited                                    
                                         
      First Quarter 2023  Fourth Quarter 2022  Third Quarter 2022  Second Quarter 2022  First Quarter 2022  
    (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$55,110 $644 4.74%$42,910 $581 5.38%$55,164 $486 4.82%$52,860  711 4.44%$43,004 $397 3.19% 
    Loans Held for Investment(1) 2,582,395  34,331 5.39  2,439,379  31,418 5.11  2,264,075  27,354 4.76  2,084,679  23,433 4.53  1,963,578  21,811 4.52  
                                         
    Investment Securities                                    
    Taxable Investment Securities 1,061,372  4,912 1.86  1,078,265  4,835 1.78  1,117,789  4,359 1.55  1,142,269  3,834 1.34  1,056,736  2,889 1.10  
    Tax-Exempt Investment Securities(1) 2,840  17 2.36  2,827  17 2.36  2,939  17 2.30  2,488  10 1.73  2,409  10 1.60  
                                         
    Total Investment Securities 1,064,212  4,929 1.86  1,081,092  4,852 1.78  1,120,728  4,376 1.55  1,144,757  3,844 1.34  1,059,145  2,899 1.10  
                                         
    Federal Funds Sold and Interest Bearing Deposits 360,971  4,111 4.62  469,352  4,463 3.77  569,984  3,231 2.25  691,925  1,408 0.82  873,097  409 0.19  
                                         
    Total Earning Assets 4,062,688 $44,015 4.39% 4,032,733 $41,314 4.07% 4,009,951 $35,447 3.51% 3,974,221 $29,396 2.97% 3,938,824 $25,516 2.63% 
                                         
    Cash and Due From Banks 74,639       74,178       79,527       79,730       74,253       
    Allowance for Credit Losses (25,637)      (22,596)      (21,509)      (20,984)      (21,655)      
    Other Assets 300,175       297,510       289,709       288,421       275,353       
                                         
    Total Assets$4,411,865      $4,381,825      $4,357,678      $4,321,388      $4,266,775       
                                         
    LIABILITIES:                                    
    Interest Bearing Deposits                                    
    NOW Accounts$1,228,928 $2,152 0.71%$1,133,733 $1,725 0.60%$1,016,475 $868 0.34%$1,033,190 $120 0.05%$1,079,906 $86 0.03% 
    Money Market Accounts 267,573  208 0.31  273,328  63 0.09  288,758  71 0.10  286,210  36 0.05  285,406  33 0.05  
    Savings Accounts 629,388  76 0.05  641,153  80 0.05  643,640  80 0.05  628,472  77 0.05  599,359  72 0.05  
    Time Deposits 89,675  52 0.24  92,385  34 0.15  94,073  33 0.14  95,132  33 0.14  97,054  33 0.14  
    Total Interest Bearing Deposits 2,215,564  2,488 0.46% 2,140,599  1,902 0.35% 2,042,946  1,052 0.20% 2,043,004  266 0.05% 2,061,725  224 0.04% 
                                         
    Short-Term Borrowings 47,109  461 3.97% 50,844  690 5.38% 46,679  536 4.56% 31,782  343 4.33% 32,353  192 2.40% 
    Subordinated Notes Payable 52,887  571 4.32  52,887  522 3.86  52,887  443 3.28  52,887  370 2.76  52,887  317 2.40  
    Other Long-Term Borrowings 480  6 4.80  530  8 4.80  580  6 4.74  722  8 4.54  833  9 4.49  
                                         
    Total Interest Bearing Liabilities 2,316,040 $3,526 0.62% 2,244,860 $3,122 0.55% 2,143,092 $2,037 0.38% 2,128,395 $987 0.19% 2,147,798 $742 0.14% 
                                         
    Noninterest Bearing Deposits 1,601,750       1,662,443       1,726,918       1,722,325       1,652,337       
    Other Liabilities 81,206       84,585       98,501       87,207       72,166       
                                         
    Total Liabilities 3,998,996       3,991,888       3,968,511       3,937,927       3,872,301       
    Temporary Equity 8,802       9,367       9,862       10,096       10,518       
                                         
    SHAREOWNERS' EQUITY: 404,067       380,570       379,305       373,365       383,956       
                                         
    Total Liabilities, Temporary Equity and Shareowners' Equity$4,411,865      $4,381,825      $4,357,678      $4,321,388      $4,266,775       
                                         
    Interest Rate Spread  $40,489 3.77%  $38,192 3.52%  $33,410 3.13%  $28,409 2.78%  $24,774 2.49% 
                                         
    Interest Income and Rate Earned(1)   44,015 4.39    41,314 4.07    35,447 3.51    29,396 2.97    25,516 2.63  
    Interest Expense and Rate Paid(2)   3,526 0.35    3,122 0.31    2,037 0.20    987 0.10    742 0.08  
                                         
    Net Interest Margin  $40,489 4.04%  $38,192 3.76%  $33,410 3.31%  $28,409 2.87%  $24,774 2.55% 
                                         
    (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.                               

    For Information Contact:
    Jep Larkin
    Executive Vice President and Chief Financial Officer
    850.402.8450

    Photos accompanying this announcement are available at:

    https://www.globenewswire.com/NewsRoom/AttachmentNg/eb26db8a-8d29-4e73-b20d-b8fdbba8bab3

    https://www.globenewswire.com/NewsRoom/AttachmentNg/9c482b4a-94ca-4ecf-8c46-560f2e77353f

    https://www.globenewswire.com/NewsRoom/AttachmentNg/5028b43a-7c88-471f-acaf-5db136b12fcf

    https://www.globenewswire.com/NewsRoom/AttachmentNg/851f7c44-9fc9-4eb1-a844-b1ec546c23aa


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    Deposit Franchise

    Capital City Bank Group has a granular and diversified deposit base.
    Liquidity

    Strong balance sheet flexibility.
    Investments

    High quality, short duration portfolio.
    Capital

    Strong capital base.
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