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Capital City Bank Group, Inc. Reports First Quarter 2025 Results
المصدر: Nasdaq GlobeNewswire / 21 أبريل 2025 07:00:01 America/New_York
TALLAHASSEE, Fla., April 21, 2025 (GLOBE NEWSWIRE) -- Capital City Bank Group, Inc. (NASDAQ: CCBG) today reported net income attributable to common shareowners of $16.9 million, or $0.99 per diluted share, for the first quarter of 2025 compared to $13.1 million, or $0.77 per diluted share, for the fourth quarter of 2024, and $12.6 million, or $0.74 per diluted share, for the first quarter of 2024.
QUARTER HIGHLIGHTS (1st Quarter 2025 versus 4th Quarter 2024)
Income Statement
- Tax-equivalent net interest income totaled $41.6 million compared to $41.2 million for the prior quarter
- Net interest margin increased five basis points to 4.22% (earning asset yield up one basis point and total deposit cost down four basis points to 82 basis points)
- Improved credit quality metrics - net loan charge-offs were nine basis points (annualized) of average loans – allowance coverage ratio increased to 1.12% at March 31, 2025
- Noninterest income increased $1.1 million, or 6.1%, and reflected a $0.7 million increase in mortgage banking revenues and a $0.5 million increase in wealth management fees
- Noninterest expense decreased $3.1 million, or 7.4%, primarily due to a $3.1 million decrease in other expense which included a higher level of gains from the sale of banking facilities, namely the sale of our operations center building in the first quarter
Balance Sheet
- Loan balances decreased $11.5 million, or 0.4% (average), and increased $9.2 million, or 0.4% (end of period)
- Deposit balances increased by $65.1 million, or 1.8% (average), and increased $111.9 million, or 3.0% (end of period), largely due to the seasonal increase in our public fund balances
- Tangible book value per diluted share (non-GAAP financial measure) increased $0.94, or 4.0%
"I am pleased with our first quarter performance, which reflects strong core fundamentals and strategic execution driven by a 2.6% increase in revenues, solid growth in deposit balances, and improvement in credit quality metrics,” said William G. Smith, Jr., Capital City Bank Group Chairman, President, and CEO. “First quarter earnings also included a $0.17 per diluted share gain from the sale of our operations center building. Our strong balance sheet and revenue diversification provides us with the flexibility to navigate ongoing uncertainty in market and economic conditions."
Discussion of Operating Results
Net Interest Income/Net Interest Margin
Tax-equivalent net interest income for the first quarter of 2025 totaled $41.6 million, compared to $41.2 million for the fourth quarter of 2024, and $38.4 million for the first quarter of 2024. Compared to both prior periods, the increase was driven by higher investment securities interest due to new investment purchases at higher yields, in addition to lower deposit interest expense, partially offset by lower loan interest due to lower average loan balances and interest rates. Two less calendar days also contributed to the decline in loan interest compared to the fourth quarter of 2024. Higher overnight funds interest also contributed to the increase over the first quarter of 2024 reflective of a higher level of average earning assets.
Our net interest margin for the first quarter of 2025 was 4.22%, an increase of five basis points over the fourth quarter of 2024 and an increase of 21 basis points over the first quarter of 2024. For the month of March 2025, our net interest margin was 4.22%. The increase in net interest margin over the fourth quarter of 2024 reflected a higher yield in the investment portfolio driven by new purchases during the quarter and a lower cost of deposits, partially offset by a lower overnight funds rate. The increase over the first quarter of 2024 reflected favorable investment repricing, a lower cost of deposits, and a higher overnight funds rate, partially offset by lower average loan balances for both prior periods. For the first quarter of 2025, our cost of funds was 84 basis points, a decrease of four basis points from the fourth quarter of 2024 and the first quarter of 2024. Our cost of deposits (including noninterest bearing accounts) was 82 basis points, 86 basis points, and 85 basis points, respectively, for the same periods.
Provision for Credit Losses
We recorded a provision expense for credit losses of $0.8 million for the first quarter of 2025 compared to $0.7 million for the fourth quarter of 2024 and $0.9 million for the first quarter of 2024. For the first quarter of 2025, we recorded a provision expense of $1.1 million for loans held for investment (“HFI”) and a provision benefit of $0.3 million for unfunded loan commitments, which was comparable to the fourth quarter of 2024. We discuss the various factors that impacted our provision expense in detail below under the heading Allowance for Credit Losses.
Noninterest Income and Noninterest Expense
Noninterest income for the first quarter of 2025 totaled $19.9 million compared to $18.8 million for the fourth quarter of 2024 and $18.1 million for the first quarter of 2024. The $1.1 million, or 6.1%, increase over the fourth quarter of 2024 was primarily due to a $0.7 million increase in mortgage banking revenues and a $0.5 million increase in wealth management fees, partially offset by a $0.1 million decrease in deposits fees. The increase in mortgage revenues was driven by an increase in rate locks and a higher gain on sale margin. The increase in wealth management fees was attributable to a $0.5 million increase in insurance commission revenue. Compared to the first quarter of 2024, the $1.8 million, or 10.0%, increase was driven by a $1.1 million increase in wealth management fees and a $0.9 million increase in mortgage banking revenues, partially offset by a $0.2 million decrease in deposit fees. The increase in wealth management fees reflected higher retail brokerage fees of $0.6 million, insurance commission revenue of $0.3 million, and trust fees of $0.2 million. The increase in mortgage revenues was driven by an increase in loan fundings and a higher gain on sale margin.
Noninterest expense for the first quarter of 2025 totaled $38.7 million compared to $41.8 million for the fourth quarter of 2024 and $40.2 million for the first quarter of 2024. The $3.1 million, or 7.4%, decrease from the fourth quarter of 2024, reflected a $3.1 million decrease in other expense, a $0.1 million decrease in occupancy expense, and a $0.1 million increase in compensation expense. The decrease in other expense was driven by a $3.5 million decrease in other real estate expense which reflected higher gains from the sale of banking facilities, primarily the sale of our operations center building in the first quarter of 2025, partially offset by a $0.5 million increase in charitable contribution expense. The slight decrease in occupancy expense was due to lower maintenance/repairs for buildings and furniture/fixtures. The slight net decrease in compensation expense reflected a $0.2 million increase in salary expense offset by a $0.1 million decrease in associate benefit expense.
Income Taxes
We realized income tax expense of $5.1 million (effective rate of 23.3%) for the first quarter of 2025 compared to $4.2 million (effective rate of 24.3%) for the fourth quarter of 2024 and $3.5 million (effective rate of 23.0%) for the first quarter of 2024. Compared to the fourth quarter of 2024, the decrease in our effective tax rate was primarily due to a discrete item in the first quarter of 2025 related to an excess tax benefit for stock compensation. Absent discrete items, we expect our annual effective tax rate to approximate 24% for 2025.
Discussion of Financial Condition
Earning Assets
Average earning assets totaled $3.994 billion for the first quarter of 2025, an increase of $72.0 million, or 1.8%, over the fourth quarter of 2024, and an increase of $144.3 million, or 3.7%, over the first quarter of 2024. The increase over both prior periods was driven by higher deposit balances (see below – Deposits). Compared to the fourth quarter of 2024, the change in the earning asset mix reflected a $67.1 million increase in investment securities and a $22.7 million increase in overnight funds sold partially offset by a $11.5 million decrease in loans HFI and a $6.3 million decrease in loans held for sale (“HFS”). Compared to the first quarter of 2024, the change in the earning asset mix reflected a $180.5 million increase in overnight funds and a $29.1 million increase in investment securities that was partially offset by a $62.7 million decrease in loans HFI and a $2.6 million decrease in HFS.
Average loans HFI decreased $11.5 million, or 0.4%, from the fourth quarter of 2024 and decreased $62.7 million, or 2.3%, from the first quarter of 2024. Compared to the fourth quarter of 2024, the decrease was primarily attributable to declines in construction loans of $8.6 million, commercial loans of $5.7 million, and consumer loans of $2.1 million, partially offset by a $6.6 million increase in home equity loans. Compared to the first quarter of 2024, the decline was driven by decreases in consumer loans (primarily indirect auto) of $58.8 million, commercial loans of $32.9 million, and commercial real estate mortgage loans of $23.1 million, partially offset by increases in residential real estate loans of $28.9 million, construction loans of $11.5 million, and home equity loans of $10.4 million.
Loans HFI at March 31, 2025 increased $9.2 million, or 0.3%, over December 31, 2024 and decreased $70.4 million, or 2.6%, from March 31, 2024. Compared to December 31, 2024, the increase was primarily attributable to increases in commercial real estate mortgage loans of $27.8 million and residential real estate loans of $12.1 million, consumer loans (primarily indirect auto) of $6.7 million, and home equity loans of $5.9 million, partially offset by decreases in construction loans of $27.7 million, commercial loans of $4.8 million, and other loans of $10.8 million. Compared to the first quarter of 2024, the decline was driven by decreases in consumer loans (primarily indirect auto) of $48.0 million, commercial loans of $33.9 million, commercial real estate mortgage loans of $16.7 million, and construction loans of $10.4 million, partially offset by increases in residential real estate loans of $27.8 million and home equity loans of $11.4 million.
Allowance for Credit Losses
At March 31, 2025, the allowance for credit losses for loans HFI totaled $29.7 million compared to $29.3 million at December 31, 2024 and $29.3 million at March 31, 2024. Activity within the allowance is provided on Page 9. The increase in the allowance over December 31, 2024 reflected higher loan balances and higher loan loss rates, partially offset by a lower level of net loan charge-offs. The increase in the allowance over March 31, 2024 was primarily due to higher loss rates. Net loan charge-offs were nine basis points of average loans for the first quarter of 2025 versus 25 basis points for the fourth quarter of 2024 and 22 basis points for the first quarter of 2024. At March 31, 2025, the allowance represented 1.12% of loans HFI compared to 1.10% at December 31, 2024, and 1.07% at March 31, 2024.
Credit Quality
Nonperforming assets (nonaccrual loans and other real estate) totaled $4.4 million at March 31, 2025 compared to $6.7 million at December 31, 2024 and $6.8 million at March 31, 2024. At March 31, 2025, nonperforming assets as a percent of total assets was 0.10%, compared to 0.15% at December 31, 2024 and 0.16% at March 31, 2024. Nonaccrual loans totaled $4.3 million at March 31, 2025, a $2.0 million decrease from December 31, 2024 and a $2.5 million decrease from March 31, 2024. Further, classified loans totaled $19.2 million at March 31, 2025, a $0.7 million decrease from December 31, 2024 and a $3.1 million decrease from March 31, 2024.
Deposits
Average total deposits were $3.665 billion for the first quarter of 2025, an increase of $65.1 million, or 1.8%, over the fourth quarter of 2024 and an increase of $89.0 million, or 2.5%, over the first quarter of 2024. Compared to the fourth quarter of 2024, the increase was primarily attributable to higher NOW account balances largely due to the seasonal increase in our public fund balances. The increase over the first quarter of 2024 reflected growth in NOW, money market and certificate of deposit account balances which was mainly due to a combination of balances migrating from savings and noninterest bearing accounts, in addition to receiving new deposits from existing and new clients via various deposit strategies.
At March 31, 2025, total deposits were $3.784 billion, an increase of $111.9 million, or 3.0%, over December 31, 2024, and an increase of $129.1 million, or 3.5%, over March 31, 2024. The increase over December 31, 2024 was due to higher balances in all deposit categories. The increase over March 31, 2024 was primarily due to higher NOW account balances, largely due to the seasonal increase in public funds and increases in money market and certificates of deposit, partially offset by lower savings account balances. Total public funds balances were $648.0 million at March 31, 2025, $660.9 million at December 31, 2024, and $615.0 million at March 31, 2024.
Liquidity
The Bank maintained an average net overnight funds (i.e., deposits with banks plus FED funds sold less FED funds purchased) sold position of $320.9 million in the first quarter of 2025 compared to $298.3 million in the fourth quarter of 2024 and $140.5 million in the first quarter of 2024. Compared to both prior periods, the increase reflected higher average deposits (primarily seasonal public funds) and lower average loans.
At March 31, 2025, we had the ability to generate approximately $1.540 billion (excludes overnight funds position of $446 million) in additional liquidity through various sources including various federal funds purchased lines, Federal Home Loan Bank borrowings, the Federal Reserve Discount Window, and brokered deposits.We also view our investment portfolio as a liquidity source as we have the option to pledge securities in our portfolio as collateral for borrowings or deposits, and/or to sell selected securities in our portfolio. Our portfolio consists of debt issued by the U.S. Treasury, U.S. governmental agencies, municipal governments, and corporate entities. At March 31, 2025, the weighted-average maturity and duration of our portfolio were 2.64 years and 2.10 years, respectively, and the available-for-sale portfolio had a net unrealized after-tax loss of $15.4 million.
Capital
Shareowners’ equity was $512.6 million at March 31, 2025 compared to $495.3 million at December 31, 2024 and $448.3 million at March 31, 2024. For the first three months of 2025, shareowners’ equity was positively impacted by net income attributable to shareowners of $16.9 million, a net $3.6 million decrease in the accumulated other comprehensive loss, the issuance of stock of $2.4 million, and stock compensation accretion of $0.4 million. The net favorable change in accumulated other comprehensive loss reflected a $4.1 million decrease in the investment securities loss that was partially offset by a $0.5 million decrease in the fair value of the interest rate swap related to subordinated debt. Shareowners’ equity was reduced by a common stock dividend of $4.1 million ($0.24 per share) and net adjustments totaling $1.9 million related to transactions under our stock compensation plans.
At March 31, 2025, our total risk-based capital ratio was 19.20% compared to 18.64% at December 31, 2024 and 16.84% at March 31, 2024. Our common equity tier 1 capital ratio was 16.08%, 15.54%, and 13.82%, respectively, on these dates. Our leverage ratio was 11.17%, 11.05%, and 10.45%, respectively, on these dates. At March 31, 2025, all our regulatory capital ratios exceeded the thresholds to be designated as “well-capitalized” under the Basel III capital standards. Further, our tangible common equity ratio (non-GAAP financial measure) was 9.61% at March 31, 2025 compared to 9.51% and 8.53% at December 31, 2024 and March 31, 2024, respectively. If our unrealized held-to-maturity securities losses of $12.1 million (after-tax) were recognized in accumulated other comprehensive loss, our adjusted tangible capital ratio would be 9.33%.
About Capital City Bank Group, Inc.
Capital City Bank Group, Inc. (NASDAQ: CCBG) is one of the largest publicly traded financial holding companies headquartered in Florida and has approximately $4.5 billion in assets. We provide a full range of banking services, including traditional deposit and credit services, mortgage banking, asset management, trust, merchant services, bankcards, securities brokerage services and financial advisory services, including the sale of life insurance, risk management and asset protection services. Our bank subsidiary, Capital City Bank, was founded in 1895 and now has 62 banking offices and 105 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: the effects of and changes in trade and monetary and fiscal policies and laws, including the interest rate policies of the Federal Reserve Board; inflation, interest rate, market and monetary fluctuations; local, regional, national, and international economic conditions and the impact they may have on us and our clients and our assessment of that impact; the costs and effects of legal and regulatory developments, the outcomes of legal proceedings or regulatory or other governmental inquiries, the results of regulatory examinations or reviews and the ability to obtain required regulatory approvals; the effect of changes in laws and regulations (including laws and regulations concerning taxes, banking, securities, and insurance) and their application with which we and our subsidiaries must comply; the effect of changes in accounting policies and practices, as may be adopted by the regulatory agencies, as well as other accounting standard setters; the accuracy of our financial statement estimates and assumptions; changes in the financial performance and/or condition of our borrowers; changes in the mix of loan geographies, sectors and types or the level of non-performing assets and charge-offs; changes in estimates of future credit loss reserve requirements based upon the periodic review thereof under relevant regulatory and accounting requirements; changes in our liquidity position; the timely development and acceptance of new products and services and perceived overall value of these products and services by users; changes in consumer spending, borrowing, and saving habits; greater than expected costs or difficulties related to the integration of new products and lines of business; technological changes; the cost and effects of cyber incidents or other failures, interruptions, or security breaches of our systems or those of our customers or third-party providers; acquisitions and integration of acquired businesses; impairment of our goodwill or other intangible assets; changes in the reliability of our vendors, internal control systems, or information systems; our ability to increase market share and control expenses; our ability to attract and retain qualified employees; changes in our organization, compensation, and benefit plans; the soundness of other financial institutions; volatility and disruption in national and international financial and commodity markets; changes in the competitive environment in our markets and among banking organizations and other financial service providers; government intervention in the U.S. financial system; the effects of natural disasters (including hurricanes), widespread health emergencies (including pandemics), military conflict, terrorism, civil unrest, climate change or other geopolitical events; our ability to declare and pay dividends; structural changes in the markets for origination, sale and servicing of residential mortgages; any inability to implement and maintain effective internal control over financial reporting and/or disclosure control; negative publicity and the impact on our reputation; and the limited trading activity and concentration of ownership of our common stock. Additional factors can be found in our Annual Report on Form 10-K for the fiscal year ended December 31, 2024 and our other filings with the SEC, which are available at the SEC’s internet site (http://www.sec.gov). Forward-looking statements in this Press Release speak only as of the date of the Press Release, and we assume no obligation to update forward-looking statements or the reasons why actual results could differ, except as may be required by law.
For Information Contact:
Jep Larkin
Executive Vice President and Chief Financial Officer
850.402. 8450USE OF NON-GAAP FINANCIAL MEASURES
UnauditedWe 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, 2025 Dec 31, 2024 Sep 30, 2024 Jun 30, 2024 Mar 31, 2024 Shareowners' Equity (GAAP) $ 512,575 $ 495,317 $ 476,499 $ 460,999 $ 448,314 Less: Goodwill and Other Intangibles (GAAP) 92,733 92,773 92,813 92,853 92,893 Tangible Shareowners' Equity (non-GAAP) A 419,842 402,544 383,686 368,146 355,421 Total Assets (GAAP) 4,461,233 4,324,932 4,225,316 4,225,695 4,259,922 Less: Goodwill and Other Intangibles (GAAP) 92,733 92,773 92,813 92,853 92,893 Tangible Assets (non-GAAP) B $ 4,368,500 $ 4,232,159 $ 4,132,503 $ 4,132,842 $ 4,167,029 Tangible Common Equity Ratio (non-GAAP) A/B 9.61% 9.51% 9.28% 8.91% 8.53% Actual Diluted Shares Outstanding (GAAP) C 17,072,330 17,018,122 16,980,686 16,970,228 16,947,204 Tangible Book Value per Diluted Share (non-GAAP) A/C $ 24.59 $ 23.65 $ 22.60 $ 21.69 $ 20.97 CAPITAL CITY BANK GROUP, INC. EARNINGS HIGHLIGHTS Unaudited Three Months Ended (Dollars in thousands, except per share data) Mar 31, 2025 Dec 31, 2024 Mar 31, 2024 EARNINGS Net Income Attributable to Common Shareowners $ 16,858 $ 13,090 $ 12,557 $ Diluted Net Income Per Share $ 0.99 $ 0.77 $ 0.74 $ PERFORMANCE Return on Average Assets (annualized) 1.58 % 1.22 % 1.21 % Return on Average Equity (annualized) 13.32 10.60 11.07 Net Interest Margin 4.22 4.17 4.01 Noninterest Income as % of Operating Revenue 32.39 31.34 32.06 Efficiency Ratio 62.93 % 69.74 % 71.06 % CAPITAL ADEQUACY Tier 1 Capital 18.01 % 17.46 % 15.67 % Total Capital 19.20 18.64 16.84 Leverage 11.17 11.05 10.45 Common Equity Tier 1 16.08 15.54 13.82 Tangible Common Equity (1) 9.61 9.51 8.53 Equity to Assets 11.49 % 11.45 % 10.52 % ASSET QUALITY Allowance as % of Non-Performing Loans 692.10 % 464.14 % 431.46 % Allowance as a % of Loans HFI 1.12 1.10 1.07 Net Charge-Offs as % of Average Loans HFI 0.09 0.25 0.22 Nonperforming Assets as % of Loans HFI and OREO 0.17 0.25 0.25 Nonperforming Assets as % of Total Assets 0.10 % 0.15 % 0.16 % STOCK PERFORMANCE High $ 38.27 $ 40.86 $ 31.34 $ Low 33.00 33.00 26.59 Close $ 35.96 $ 36.65 $ 27.70 $ Average Daily Trading Volume 24,486 27,484 31,023 (1) Tangible common equity ratio is a non-GAAP financial measure. For additional information, including a reconciliation to GAAP, refer to Page 5. CAPITAL CITY BANK GROUP, INC. CONSOLIDATED STATEMENT OF FINANCIAL CONDITION Unaudited 2025 2024 (Dollars in thousands) First Quarter Fourth Quarter Third Quarter Second Quarter First Quarter ASSETS Cash and Due From Banks $ 78,521 $ 70,543 $ 83,431 $ 75,304 $ 73,642 Funds Sold and Interest Bearing Deposits 446,042 321,311 261,779 272,675 231,047 Total Cash and Cash Equivalents 524,563 391,854 345,210 347,979 304,689 Investment Securities Available for Sale 461,224 403,345 336,187 310,941 327,338 Investment Securities Held to Maturity 517,176 567,155 561,480 582,984 603,386 Other Equity Securities 2,315 2,399 6,976 2,537 3,445 Total Investment Securities 980,715 972,899 904,643 896,462 934,169 Loans Held for Sale ("HFS"): 21,441 28,672 31,251 24,022 24,705 Loans Held for Investment ("HFI"): Commercial, Financial, & Agricultural 184,393 189,208 194,625 204,990 218,298 Real Estate - Construction 192,282 219,994 218,899 200,754 202,692 Real Estate - Commercial 806,942 779,095 819,955 823,122 823,690 Real Estate - Residential 1,040,594 1,028,498 1,023,485 1,012,541 1,012,791 Real Estate - Home Equity 225,987 220,064 210,988 211,126 214,617 Consumer 206,191 199,479 213,305 234,212 254,168 Other Loans 3,227 14,006 461 2,286 3,789 Overdrafts 1,154 1,206 1,378 1,192 1,127 Total Loans Held for Investment 2,660,770 2,651,550 2,683,096 2,690,223 2,731,172 Allowance for Credit Losses (29,734 ) (29,251 ) (29,836 ) (29,219 ) (29,329 ) Loans Held for Investment, Net 2,631,036 2,622,299 2,653,260 2,661,004 2,701,843 Premises and Equipment, Net 80,043 81,952 81,876 81,414 81,452 Goodwill and Other Intangibles 92,733 92,773 92,813 92,853 92,893 Other Real Estate Owned 132 367 650 650 1 Other Assets 130,570 134,116 115,613 121,311 120,170 Total Other Assets 303,478 309,208 290,952 296,228 294,516 Total Assets $ 4,461,233 $ 4,324,932 $ 4,225,316 $ 4,225,695 $ 4,259,922 LIABILITIES Deposits: Noninterest Bearing Deposits $ 1,363,739 $ 1,306,254 $ 1,330,715 $ 1,343,606 $ 1,361,939 NOW Accounts 1,292,654 1,285,281 1,174,585 1,177,180 1,212,452 Money Market Accounts 445,999 404,396 401,272 413,594 398,308 Savings Accounts 511,265 506,766 507,604 514,560 530,782 Certificates of Deposit 170,233 169,280 164,901 159,624 151,320 Total Deposits 3,783,890 3,671,977 3,579,077 3,608,564 3,654,801 Repurchase Agreements 22,799 26,240 29,339 22,463 23,477 Other Short-Term Borrowings 14,401 2,064 7,929 3,307 8,409 Subordinated Notes Payable 52,887 52,887 52,887 52,887 52,887 Other Long-Term Borrowings 794 794 794 1,009 265 Other Liabilities 73,887 75,653 71,974 69,987 65,181 Total Liabilities 3,948,658 3,829,615 3,742,000 3,758,217 3,805,020 Temporary Equity - - 6,817 6,479 6,588 SHAREOWNERS' EQUITY Common Stock 171 170 169 169 169 Additional Paid-In Capital 38,576 37,684 36,070 35,547 34,861 Retained Earnings 476,715 463,949 454,342 445,959 435,364 Accumulated Other Comprehensive Loss, Net of Tax (2,887 ) (6,486 ) (14,082 ) (20,676 ) (22,080 ) Total Shareowners' Equity 512,575 495,317 476,499 460,999 448,314 Total Liabilities, Temporary Equity and Shareowners' Equity $ 4,461,233 $ 4,324,932 $ 4,225,316 $ 4,225,695 $ 4,259,922 OTHER BALANCE SHEET DATA Earning Assets $ 4,108,969 $ 3,974,431 $ 3,880,769 $ 3,883,382 $ 3,921,093 Interest Bearing Liabilities 2,511,032 2,447,708 2,339,311 2,344,624 2,377,900 Book Value Per Diluted Share $ 30.02 $ 29.11 $ 28.06 $ 27.17 $ 26.45 Tangible Book Value Per Diluted Share(1) 24.59 23.65 22.60 21.69 20.97 Actual Basic Shares Outstanding 17,055 16,975 16,944 16,942 16,929 Actual Diluted Shares Outstanding 17,072 17,018 16,981 16,970 16,947 (1) Tangible book value per diluted share is a non-GAAP financial measure. For additional information, including a reconciliation to GAAP, refer to Page 5. CAPITAL CITY BANK GROUP, INC. CONSOLIDATED STATEMENT OF OPERATIONS Unaudited 2025 2024 (Dollars in thousands, except per share data) First Quarter Fourth Quarter Third Quarter Second Quarter First Quarter INTEREST INCOME Loans, including Fees $ 40,478 $ 41,453 $ 41,659 $ 41,138 $ 40,683 Investment Securities 5,808 4,694 4,155 4,004 4,244 Federal Funds Sold and Interest Bearing Deposits 3,496 3,596 3,514 3,624 1,893 Total Interest Income 49,782 49,743 49,328 48,766 46,820 INTEREST EXPENSE Deposits 7,383 7,766 8,223 8,579 7,594 Repurchase Agreements 164 199 221 217 201 Other Short-Term Borrowings 117 83 52 68 39 Subordinated Notes Payable 560 581 610 630 628 Other Long-Term Borrowings 11 11 11 3 3 Total Interest Expense 8,235 8,640 9,117 9,497 8,465 Net Interest Income 41,547 41,103 40,211 39,269 38,355 Provision for Credit Losses 768 701 1,206 1,204 920 Net Interest Income after Provision for Credit Losses 40,779 40,402 39,005 38,065 37,435 NONINTEREST INCOME Deposit Fees 5,061 5,207 5,512 5,377 5,250 Bank Card Fees 3,514 3,697 3,624 3,766 3,620 Wealth Management Fees 5,763 5,222 4,770 4,439 4,682 Mortgage Banking Revenues 3,820 3,118 3,966 4,381 2,878 Other 1,749 1,516 1,641 1,643 1,667 Total Noninterest Income 19,907 18,760 19,513 19,606 18,097 NONINTEREST EXPENSE Compensation 26,248 26,108 25,800 24,406 24,407 Occupancy, Net 6,793 6,893 7,098 6,997 6,994 Other 5,660 8,781 10,023 9,038 8,770 Total Noninterest Expense 38,701 41,782 42,921 40,441 40,171 OPERATING PROFIT 21,985 17,380 15,597 17,230 15,361 Income Tax Expense 5,127 4,219 2,980 3,189 3,536 Net Income 16,858 13,161 12,617 14,041 11,825 Pre-Tax (Income) Loss Attributable to Noncontrolling Interest - (71 ) 501 109 732 NET INCOME ATTRIBUTABLE TO
COMMON SHAREOWNERS$ 16,858 $ 13,090 $ 13,118 $ 14,150 $ 12,557 PER COMMON SHARE Basic Net Income $ 0.99 $ 0.77 $ 0.77 $ 0.84 $ 0.74 Diluted Net Income 0.99 0.77 0.77 0.83 0.74 Cash Dividend $ 0.24 $ 0.23 $ 0.23 $ 0.21 $ 0.21 AVERAGE SHARES Basic 17,027 16,946 16,943 16,931 16,951 Diluted 17,044 16,990 16,979 16,960 16,969 CAPITAL CITY BANK GROUP, INC. ALLOWANCE FOR CREDIT LOSSES ("ACL") AND CREDIT QUALITY Unaudited 2025 2024 (Dollars in thousands, except per share data) First Quarter Fourth Quarter Third Quarter Second Quarter First Quarter ACL - HELD FOR INVESTMENT LOANS Balance at Beginning of Period $ 29,251 $ 29,836 $ 29,219 $ 29,329 $ 29,941 Transfer from Other (Assets) Liabilities - - - - (50 ) Provision for Credit Losses 1,083 1,085 1,879 1,129 932 Net Charge-Offs (Recoveries) 600 1,670 1,262 1,239 1,494 Balance at End of Period $ 29,734 $ 29,251 $ 29,836 $ 29,219 $ 29,329 As a % of Loans HFI 1.12 % 1.10 % 1.11 % 1.09 % 1.07 % As a % of Nonperforming Loans 692.10 % 464.14 % 452.64 % 529.79 % 431.46 % ACL - UNFUNDED COMMITMENTS Balance at Beginning of Period 2,155 $ 2,522 $ 3,139 $ 3,121 $ 3,191 Provision for Credit Losses (323 ) (367 ) (617 ) 18 (70 ) Balance at End of Period(1) 1,832 2,155 2,522 3,139 3,121 ACL - DEBT SECURITIES Provision for Credit Losses $ 8 $ (17 ) $ (56 ) $ 57 $ 58 CHARGE-OFFS Commercial, Financial and Agricultural $ 168 $ 499 $ 331 $ 400 $ 282 Real Estate - Construction - 47 - - - Real Estate - Commercial - - 3 - - Real Estate - Residential 8 44 - - 17 Real Estate - Home Equity - 33 23 - 76 Consumer 865 1,307 1,315 1,061 1,550 Overdrafts 570 574 611 571 638 Total Charge-Offs $ 1,611 $ 2,504 $ 2,283 $ 2,032 $ 2,563 RECOVERIES Commercial, Financial and Agricultural $ 75 $ 103 $ 176 $ 59 $ 41 Real Estate - Construction - 3 - - - Real Estate - Commercial 3 33 5 19 204 Real Estate - Residential 119 28 88 23 37 Real Estate - Home Equity 9 17 59 37 24 Consumer 481 352 405 313 410 Overdrafts 324 298 288 342 353 Total Recoveries $ 1,011 $ 834 $ 1,021 $ 793 $ 1,069 NET CHARGE-OFFS (RECOVERIES) $ 600 $ 1,670 $ 1,262 $ 1,239 $ 1,494 Net Charge-Offs as a % of Average Loans HFI(2) 0.09 % 0.25 % 0.19 % 0.18 % 0.22 % CREDIT QUALITY Nonaccruing Loans $ 4,296 $ 6,302 $ 6,592 $ 5,515 $ 6,798 Other Real Estate Owned 132 367 650 650 1 Total Nonperforming Assets ("NPAs") $ 4,428 $ 6,669 $ 7,242 $ 6,165 $ 6,799 Past Due Loans 30-89 Days $ 3,735 $ 4,311 $ 9,388 $ 5,672 $ 5,392 Classified Loans 19,194 19,896 25,501 25,566 22,305 Nonperforming Loans as a % of Loans HFI 0.16 % 0.24 % 0.25 % 0.21 % 0.25 % NPAs as a % of Loans HFI and Other Real Estate 0.17 % 0.25 % 0.27 % 0.23 % 0.25 % NPAs as a % of Total Assets 0.10 % 0.15 % 0.17 % 0.15 % 0.16 % (1) Recorded in other liabilities (2) Annualized CAPITAL CITY BANK GROUP, INC. AVERAGE BALANCE AND INTEREST RATES Unaudited First Quarter 2025 Fourth Quarter 2024 Third Quarter 2024 Second Quarter 2024 First Quarter 2024 (Dollars in thousands) Average
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RateASSETS: Loans Held for Sale $ 24,726 $ 490 8.04 % $ 31,047 $ 976 7.89 % $ 24,570 $ 720 7.49 % $ 26,281 517 5.26 % $ 27,314 $ 563 5.99 % Loans Held for Investment(1) 2,665,910 40,029 6.09 2,677,396 40,521 6.07 2,693,533 40,985 6.09 2,726,748 40,683 6.03 2,728,629 40,196 5.95 Investment Securities Taxable Investment Securities 981,485 5,802 2.38 914,353 4,688 2.04 907,610 4,148 1.82 918,989 3,998 1.74 952,328 4,238 1.78 Tax-Exempt Investment Securities(1) 845 9 4.32 849 9 4.31 846 10 4.33 843 9 4.36 856 10 4.34 Total Investment Securities 982,330 5,811 2.38 915,202 4,697 2.04 908,456 4,158 1.82 919,832 4,007 1.74 953,184 4,248 1.78 Federal Funds Sold and Interest Bearing Deposits 320,948 3,496 4.42 298,255 3,596 4.80 256,855 3,514 5.44 262,419 3,624 5.56 140,488 1,893 5.42 Total Earning Assets 3,993,914 $ 49,826 5.06 % 3,921,900 $ 49,790 5.05 % 3,883,414 $ 49,377 5.06 % 3,935,280 $ 48,831 4.99 % 3,849,615 $ 46,900 4.90 % Cash and Due From Banks 73,467 73,992 70,994 74,803 75,763 Allowance for Credit Losses (30,008 ) (30,107 ) (29,905 ) (29,564 ) (30,030 ) Other Assets 297,660 293,884 291,359 291,669 295,275 Total Assets $ 4,335,033 $ 4,259,669 $ 4,215,862 $ 4,272,188 $ 4,190,623 LIABILITIES: Noninterest Bearing Deposits $ 1,317,425 $ 1,323,556 $ 1,332,305 $ 1,346,546 $ 1,344,188 NOW Accounts 1,249,955 $ 3,854 1.25 % 1,182,073 $ 3,826 1.29 % 1,145,544 $ 4,087 1.42 % 1,207,643 $ 4,425 1.47 % 1,201,032 $ 4,497 1.51 % Money Market Accounts 420,059 2,187 2.11 422,615 2,526 2.38 418,625 2,694 2.56 407,387 2,752 2.72 353,591 1,985 2.26 Savings Accounts 507,676 176 0.14 504,859 179 0.14 512,098 180 0.14 519,374 176 0.14 539,374 188 0.14 Time Deposits 170,367 1,166 2.78 167,321 1,235 2.94 163,462 1,262 3.07 160,078 1,226 3.08 138,328 924 2.69 Total Interest Bearing Deposits 2,348,057 7,383 1.28 2,276,868 7,766 1.36 2,239,729 8,223 1.46 2,294,482 8,579 1.50 2,232,325 7,594 1.37 Total Deposits 3,665,482 7,383 0.82 3,600,424 7,766 0.86 3,572,034 8,223 0.92 3,641,028 8,579 0.95 3,576,513 7,594 0.85 Repurchase Agreements 29,821 164 2.23 28,018 199 2.82 27,126 221 3.24 26,999 217 3.24 25,725 201 3.14 Other Short-Term Borrowings 7,437 117 6.39 6,510 83 5.06 2,673 52 7.63 6,592 68 4.16 3,758 39 4.16 Subordinated Notes Payable 52,887 560 4.23 52,887 581 4.30 52,887 610 4.52 52,887 630 4.71 52,887 628 4.70 Other Long-Term Borrowings 794 11 5.68 794 11 5.57 795 11 5.55 258 3 4.31 281 3 4.80 Total Interest Bearing Liabilities 2,438,996 $ 8,235 1.37 % 2,365,077 $ 8,640 1.45 % 2,323,210 $ 9,117 1.56 % 2,381,218 $ 9,497 1.60 % 2,314,976 $ 8,465 1.47 % Other Liabilities 65,211 73,130 73,767 72,634 68,295 Total Liabilities 3,821,632 3,761,763 3,729,282 3,800,398 3,727,459 Temporary Equity - 6,763 6,443 6,493 7,150 SHAREOWNERS' EQUITY: 513,401 491,143 480,137 465,297 456,014 Total Liabilities, Temporary Equity and Shareowners' Equity $ 4,335,033 $ 4,259,669 $ 4,215,862 $ 4,272,188 $ 4,190,623 Interest Rate Spread $ 41,591 3.69 % $ 41,150 3.59 % $ 40,260 3.49 % $ 39,334 3.38 % $ 38,435 3.43 % Interest Income and Rate Earned(1) 49,826 5.06 49,790 5.05 49,377 5.06 48,831 4.99 46,900 4.90 Interest Expense and Rate Paid(2) 8,235 0.84 8,640 0.88 9,117 0.93 9,497 0.97 8,465 0.88 Net Interest Margin $ 41,591 4.22 % $ 41,150 4.17 % $ 40,260 4.12 % $ 39,334 4.02 % $ 38,435 4.01 % (1) Interest and average rates are calculated on a tax-equivalent basis using a 21% Federal tax rate. (2) Rate calculated based on average earning assets. 
- Tax-equivalent net interest income totaled $41.6 million compared to $41.2 million for the prior quarter