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

    المصدر: Nasdaq GlobeNewswire / 23 يناير 2024 07:00:01   America/New_York

    TALLAHASSEE, Fla., Jan. 23, 2024 (GLOBE NEWSWIRE) -- Capital City Bank Group, Inc. (NASDAQ: CCBG) today reported net income attributable to common shareowners of $11.7 million, or $0.70 per diluted share, for the fourth quarter of 2023 compared to $12.7 million, or $0.74 per diluted share, for the third quarter of 2023, and $9.6 million, or $0.56 per diluted share, for the fourth quarter of 2022.

    For the full year of 2023, net income attributable to common shareowners totaled $52.3 million, or $3.07 per diluted share, compared to net income of $33.4 million, or $1.97 per diluted share, for the same period of 2022.

    QUARTER HIGHLIGHTS (4th Quarter 2023 versus 3rd Quarter 2023)

    Income Statement

    • Tax-equivalent net interest income totaled $39.3 million compared to $39.4 million for the prior quarter – total deposit cost increased 8 basis points to 66 basis points – net interest margin increased four basis points to 4.07%
    • Continued strong credit quality metrics – allowance coverage ratio increased from 1.08% to 1.10% - net loan charge-offs were 23 basis points (annualized) of average loans compared to 17 basis points for the prior quarter
    • Noninterest income increased $0.4 million, or 2.6%, driven by higher mortgage banking revenues
    • Noninterest expense increased $0.9 million, or 2.2%, primarily due to lower realized loan cost (credit offset to salary expense) reflective of lower level of residential loan originations and higher professional/legal fees of $0.6 million   

    Balance Sheet

    • Loan balances grew $38.6 million, or 1.4% (average), and $28.7 million, or 1.1% (end of period)
    • Deposit balances (including repurchase agreements) declined by $46.8 million, or 1.3% (average), and increased $165.4 million, or 4.6% (end of period) reflective of the seasonal increase in public fund balances
    • Tangible book value per share increased $1.23, or 6.4%, and reflected a $12.5 million ($0.74/share) decrease in the accumulated other comprehensive loss reflective of lower investment security losses of $9.3 million and a favorable year-end re-measurement adjustment for the pension plan of $4.3 million

    FULL YEAR 2023 HIGHLIGHTS

    Income Statement

    • Tax-equivalent net interest income totaled $159.4 million for 2023 compared to $125.3 million for 2022 driven by strong loan growth and higher interest rates, partially offset by higher deposit cost which was well controlled at 48 basis points for the year – net interest margin was 4.05% for 2023 compared to 3.14% for 2022
    • Credit quality metrics remained strong throughout the year – allowance coverage ratio increased from 0.98% to 1.10% - net loan charge-offs were 18 basis points of average loans for both periods
    • Noninterest income decreased $3.6 million, or 4.8%, driven by lower wealth management fees reflective of lower insurance commissions (large policy sales in 2022) and mortgage banking revenues (lower residential loan originations attributable to the higher interest rate environment)
    • Noninterest expense increased $5.4 million, or 3.6%, primarily due to higher compensation and occupancy expense reflective of the addition of staffing and banking offices in our new markets   

    Balance Sheet

    • Loan balances grew $467.0 million, or 21.3% (average), and $186.2 million, or 7.3% (end of period)
    • Deposit balances (including repurchase agreements) declined by $81.9 million, or 2.2% (average), and decreased $217.1 million, or 5.5% (end of period)
    • Tangible book value per share increased $3.18, or 18.4%, driven by strong earnings and favorable investment security and pension plan accumulated other comprehensive loss adjustments

    “I am pleased with Capital City’s performance this year and am very proud of our team for achieving another year of record earnings,” said William G. Smith, Jr., Chairman, President, and CEO of Capital City Bank Group, Inc. “Amid a challenging year for our industry, our deposit franchise, disciplined credit, diversified revenues, and conservative balance sheet management resulted in strong profitability and capital growth. We are well positioned as we enter 2024 and remain focused on strategies that add long-term value for our clients and shareowners.”

    Discussion of Operating Results

    Net Interest Income/Net Interest Margin

    Tax-equivalent net interest income for the fourth quarter of 2023 totaled $39.3 million, compared to $39.4 million for the third quarter of 2023, and $38.2 million for the fourth quarter of 2022.   For the full year of 2023, tax-equivalent net interest income totaled $159.4 million compared to $125.3 million for the same period of 2022. Compared to the third quarter of 2023, the decrease reflected higher deposit interest expense and a lower level of interest income from overnight funds, partially offset by higher loan interest due to loan growth and loan re-pricing at higher interest rates. Compared to the full year 2022, the increase reflected loan growth and higher interest rates across a majority of our earning assets, partially offset by higher deposit interest expense.

    Our net interest margin for the fourth quarter of 2023 was 4.07%, an increase of four basis points over the third quarter of 2023 and an increase of 31 basis points over the fourth quarter of 2022. For the month of December 2023, our net interest margin was 4.09%. For 2023, our net interest margin was 4.05%, an increase of 91 basis points over 2022. The increase compared to all prior periods reflected a combination of earning assets re-pricing at higher interest rates and loan growth, partially offset by a higher cost of deposits. For the fourth quarter of 2023, our cost of funds was 73 basis points, an increase of 7 basis points over the third quarter of 2023 and an increase of 42 basis points over the fourth quarter of 2022. Our total cost of deposits (including noninterest bearing accounts) was 66 basis points, 58 basis points, and 20 basis points, respectively, for the same periods.

    Provision for Credit Losses

    We recorded a provision for credit losses of $2.0 million for the fourth quarter of 2023 compared to $2.4 million for the third quarter of 2023 and $3.6 million for the fourth quarter of 2022. The decrease in the provision compared to the third quarter of 2023 was primarily attributable to a lower level of reserves required for unfunded commitments.   For the full year of 2023, we recorded a provision for credit losses of $9.7 million compared to $7.5 million for 2022. The higher level of provision in 2023 was primarily driven by loan growth and also reflected the favorable impact in 2022 of the release of reserves held for pandemic related losses. We discuss the allowance for credit losses further below.

    Noninterest Income and Noninterest Expense

    Noninterest income for the fourth quarter of 2023 totaled $17.1 million compared to $16.7 million for the third quarter of 2023 and $15.3 million for the fourth quarter of 2022. The $0.4 million increase over the third quarter of 2023 reflected an increase in mortgage banking revenues of $0.5 million and wealth management fees of $0.3 million, partially offset by a decrease in deposit fees of $0.2 million and other income of $0.2 million. Compared to the fourth quarter of 2022, the $1.9 million increase was attributable to a $2.2 million increase in mortgage banking revenues and a $0.6 million increase in wealth management fees partially offset by a $0.7 million decrease in other income and a $0.2 million decrease in deposit fees.

    For the full year of 2023, noninterest income totaled $71.6 million compared to $75.2 million for 2022 and reflected decreases in wealth management fees of $1.7 million, mortgage banking revenues of $1.5 million, deposit fees of $0.8 million, and bank card fees of $0.5 million, partially offset by a $0.9 million increase in other income. The decrease in wealth management fees reflected lower insurance commissions of $2.7 million due to the sale of large policies in 2022 and was partially offset by higher trust fees of $0.5 million and retail brokerage fees of $0.5 million. The decrease in mortgage banking revenues was primarily driven by lower production volume in 2023, reflective of the rapid increase in interest rates and lower market driven gain on sale margins. The decline in deposit fees reflected lower commercial account analysis fees and account service charge fees, and the reduction in bank card fees was generally due to lower card volume reflective of slower consumer spending. The increase in other income was primarily due to a $1.4 million gain from the sale of mortgage servicing rights that was partially offset by lower loan servicing income.

    Noninterest expense for the fourth quarter of 2023 totaled $40.0 million compared to $39.1 million for the third quarter of 2023 and $39.3 million for the fourth quarter of 2022. The $0.9 million increase over the third quarter of 2023 was attributable to increases in compensation expense of $0.8 million and occupancy expense of $0.2 million that was partially offset by a $0.1 million decrease in other expense. The increase in compensation expense was due to a $0.8 million increase in salary expense partially attributable to a $0.5 million decrease in realized loan cost (recorded as a credit offset to salary expense) driven by lower residential loan originations. For the fourth quarter of 2023, other expense included approximately $0.6 million in professional and legal fees related to the financial statement restatement.    

    Compared to the fourth quarter of 2022, the $0.7 million increase in noninterest expense reflected a $0.8 million increase in compensation expense and a $0.8 million increase in occupancy expense that was partially offset by a $0.9 million decrease in other expense. The increases in compensation expense and occupancy expense were generally driven by the same factors discussed in further detail below. The variance in other expense was primarily attributable to lower pension related costs, including the recognition of pension settlement expense of $1.7 million in the fourth quarter of 2022 whereas there was no pension settlement expense in the fourth quarter of 2023 due to a significantly lower level of retirements. A $0.7 million increase in the non-service component of pension plan expense was partially offsetting.

    For the full year of 2023, noninterest expense totaled $157.0 million compared to $151.6 million for 2022 and reflected increases in occupancy expense of $3.1 million and compensation expense of $2.3 million. The increase in occupancy expense was primarily driven by the addition of four new banking offices in mid-to-late 2022 and early 2023, and to a lesser extent higher expense for property insurance (increased premiums) and maintenance agreements (network and security upgrades). The increase in compensation expense reflected a $4.7 million increase in salary expense that was partially offset by a $2.4 million decrease in associate benefit expense. The increase in salary expense was primarily due to a $3.6 million increase in base salaries (primarily the addition of staffing in new markets and annual merit), a $3.0 million reduction in realized cost (lower new residential loan originations in 2023) and higher incentive expense of $1.2 million that was partially offset by lower commission expense of $3.3 million (lower residential loan originations and insurance policy sales in 2023). The decrease in associate benefit expense reflected a $2.9 million decrease in pension plan service cost expense that was partially offset by a $0.5 million increase in associate insurance expense (higher premiums). The net variance in other expense was primarily due to lower expenses for OREO of $1.6 million (gain from the sale of a banking office in the first quarter of 2023), mortgage servicing asset amortization of $1.0 million (mid-2023 sale of servicing rights), and pension plan expense (non-service component) of $0.5 million, offset by higher expenses for professional fees of $0.8 million and FDIC insurance of $0.6 million. Further, there was no pension settlement expense in 2023 whereas we realized $2.3 million in total pension settlement expense in 2022.

    Income Taxes

    We realized income tax expense of $2.9 million (effective rate of 20.3%) for the fourth quarter of 2023 compared to $3.0 million (effective rate of 20.7%) for the third quarter of 2023 and $1.9 million (effective rate of 18.1%) for the fourth quarter of 2022. For the full year of 2023, we realized income tax expense of $13.0 million (effective rate of 20.4%) compared to $7.8 million (effective rate of 19.0%) for 2022.   The increase in our effective tax rate for the fourth quarter of 2023 reflected a lower level of tax benefit accrued from an investment in a solar tax credit equity fund. The increase in our effective tax rate for the full year of 2023 was attributable to a lower level of pre-tax income from our 51% owned residential mortgage subsidiary, Capital City Home Loans (“CCHL”), in relation to our consolidated income as the non-controlling interest adjustment for CCHL is accounted for as a permanent tax adjustment. Further, we recognized 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 21-22% for 2024.

    Discussion of Financial Condition

    Earning Assets

    Average earning assets totaled $3.824 billion for the fourth quarter of 2023, a decrease of $53.0 million, or 1.4%, from the third quarter of 2023, and a decrease of $208.8 million, or 5.2%, from the fourth quarter of 2022. The decrease from both prior periods was attributable to lower 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 $38.6 million, or 1.4%, over the third quarter of 2023 and $271.9 million, or 11.1%, over the fourth quarter of 2022. Period end loans increased $28.7 million, or 1.1%, over the third quarter of 2023 and $186.2 million, or 7.3%, over the fourth quarter of 2022. Compared to both prior periods, the loan growth was primarily in the residential real estate category and was partially offset by lower indirect auto and construction loan balances.

    Allowance for Credit Losses

    At December 31, 2023, the allowance for credit losses for HFI loans totaled $29.9 million compared to $29.1 million at September 30, 2023 and $25.1 million at December 31, 2022. Activity within the allowance is provided on Page 9. The increase in the allowance over both prior periods was driven primarily by loan growth. Further, the increase from December 31, 2022 reflected a higher loss rate for the residential real estate portfolio due to slower prepayment speeds. At December 31, 2023, the allowance represented 1.10% of HFI loans compared to 1.08% at September 30, 2023, and 0.98% at December 31, 2022.  

    Credit Quality

    Overall credit quality remains strong. Nonperforming assets (nonaccrual loans and other real estate) totaled $6.2 million at December 31, 2023 compared to $4.7 million at September 30, 2023 and $2.7 million at December 31, 2022. At December 31, 2023, nonperforming assets as a percent of total assets equaled 0.15%, compared to 0.11% at September 30, 2023 and 0.06% at December 31, 2022. Nonaccrual loans totaled $6.2 million at December 31, 2023, a $1.5 million increase over September 30, 2023 and a $3.9 million increase over December 31, 2022. Further, classified loans totaled $22.2 million at December 31, 2023, a $0.4 million increase over September 30, 2023 and a $2.9 million increase over December 31, 2022.

    Deposits

    Average total deposits were $3.549 billion for the fourth quarter of 2023, a decrease of $48.3 million, or 1.3%, from the third quarter of 2023 and a decrease of $254.5 million, or 6.7%, from the fourth quarter of 2022. Compared to both prior periods, the decreases were primarily attributable to lower noninterest bearing and savings accounts, partially offset by increases in NOW balances and certificates of deposit.  

    At December 31, 2023, total deposits were $3.702 billion, an increase of $161.4 million, or 4.6%, from September 30, 2023 and a decline of $237.5 million, or 6.0%, from December 31, 2022. Our public fund deposit balances increased $234.4 million and declined $10.9 million from September 30, 2023 and December 31, 2022, respectively. Compared to September 30, 2023, the increase in public funds reflected the seasonal increase in these balances as municipal tax receipts are received.   Lower deposit balances year-over-year reflected continued client spend of stimulus savings and clients seeking higher yielding investment products outside the Bank, a portion of which have moved to our wealth division. Additionally, compared to both prior periods, we realized a remix of deposit balances of $33 million and $140 million, respectively, as noninterest bearing accounts migrated into interest bearing accounts (primarily NOW and money market accounts).

    Business deposit transaction accounts classified as repurchase agreements averaged $26.8 million for the fourth quarter of 2023, an increase of $1.5 million over the third quarter of 2023 and $18.4 million over the fourth quarter of 2022. At December 31, 2023, repurchase agreement balances were $27.0 million compared to $22.9 million at September 30, 2023 and $6.6 million at December 31, 2022.

    Liquidity

    The Bank maintained an average net overnight funds (deposits with banks plus FED funds sold less FED funds purchased) sold position of $99.8 million in the fourth quarter of 2023 compared to $136.6 million in the third quarter of 2023 and $469.4 million in the fourth quarter of 2022. The declining overnight funds position reflected growth in average loans and lower average deposit balances.

    At December 31, 2023, we had the ability to generate approximately $1.488 billion (excludes overnight funds position of $229 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 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 December 31, 2023, the weighted-average maturity and duration of our portfolio were 2.91 years and 2.53, respectively, and the available-for-sale portfolio had a net unrealized tax-effected loss of $22.3 million. 

    Capital

    Shareowners’ equity was $440.6 million at December 31, 2023 compared to $419.7 million at September 30, 2023 and $387.3 million at December 31, 2022. For the fourth quarter of 2023, the $20.9 million increase was partially attributable to a $12.5 million decrease in the accumulated other comprehensive loss including a $9.3 million net decrease in the investment securities loss and a $4.3 million decrease in the pension plan loss from the year-end re-measurement of the plan. For the full year 2023, shareowners’ equity was positively impacted by net income attributable to common shareowners of $52.3 million, a $4.1 million decrease in the accumulated other comprehensive loss for our pension plan, a $11.7 million decrease in the unrealized loss on investment securities, the issuance of stock of $2.5 million, and stock compensation accretion of $1.3 million.   Shareowners’ equity was reduced by common stock dividends of $12.9 million ($0.76 per share), the repurchase of stock of $3.7 million (122,538 shares), net adjustments totaling $1.3 million related to transactions under our stock compensation plans, and a $0.7 million decrease in the fair value of the interest rate swap related to subordinated debt.

    At December 31, 2023, our total risk-based capital ratio was 16.57% compared to 16.30% at September 30, 2023 and 15.30% at December 31, 2022. Our common equity tier 1 capital ratio was 13.52%, 13.26%, and 12.38%, respectively, on these dates. Our leverage ratio was 10.30%, 9.98%, and 8.91%, respectively, on these dates. At December 31, 2023, 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 was 8.26% at December 31, 2023 compared to 8.08% and 6.65% at September 30, 2023 and December 31, 2022, respectively. If our unrealized held-to-maturity securities losses of $21.5 million (after-tax) were recognized in accumulated other comprehensive loss, our adjusted tangible capital ratio would be 7.74%.

    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 103 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 bank failures and any related impacts 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 to stabilize 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 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; risks related to changes in key personnel and any changes in 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), acts of war, 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 financial statements as of and for the year ended December 31, 2022, the three months ended March 31, 2022 and 2023, the three and six months ended June 30, 2022 and 2023, and the three and nine months ended September 30, 2022; any inability to implement and maintain effective internal control over financial reporting or inability to remediate our existing material weaknesses in our internal controls deemed ineffective; the inherent limitations in internal control over financial reporting and disclosure controls and procedures; 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/A 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, 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)Dec 31, 2023Sep 30, 2023Jun 30, 2023Mar 31, 2023Dec 31, 2022
    Shareowners' Equity (GAAP) $440,625$419,706$412,422$403,260$387,281
    Less: Goodwill and Other Intangibles (GAAP)  92,933 92,973 93,013 93,053 93,093
    Tangible Shareowners' Equity (non-GAAP)A 347,692 326,733 319,409 310,207 294,188
    Total Assets (GAAP)  4,304,477 4,138,287 4,391,206 4,401,762 4,519,223
    Less: Goodwill and Other Intangibles (GAAP)  92,933 92,973 93,013 93,053 93,093
    Tangible Assets (non-GAAP)B$4,211,544$4,045,314$4,298,193$4,308,709$4,426,130
    Tangible Common Equity Ratio (non-GAAP)A/B 8.26% 8.08% 7.43% 7.20% 6.65%
    Actual Diluted Shares Outstanding (GAAP)C 17,000,590 16,997,886 17,025,023 17,049,913 17,039,401
    Tangible Book Value per Diluted Share (non-GAAP)A/C$20.45$19.22$18.76$18.19$17.27



    CAPITAL CITY BANK GROUP, INC.           
    EARNINGS HIGHLIGHTS           
    Unaudited           
                
      Three Months Ended Twelve Months Ended 
    (Dollars in thousands, except per share data) Dec 31, 2023 Sep 30, 2023 Dec 31, 2022 Dec 31, 2023 Dec 31, 2022 
    EARNINGS           
    Net Income Attributable to Common Shareowners$11,720$12,655$9,609 52,258$33,412 
    Diluted Net Income Per Share$0.70$0.74$0.56 3.07$1.97 
    PERFORMANCE           
    Return on Average Assets (annualized) 1.12%1.19%0.87%1.22%0.77%
    Return on Average Equity (annualized) 10.69 11.74 10.02 12.40 8.81 
    Net Interest Margin 4.07 4.03 3.76 4.05 3.14 
    Noninterest Income as % of Operating Revenue 30.46 29.87 28.65 31.05 37.55 
    Efficiency Ratio 70.82%69.71%73.41%67.99%75.62%
    CAPITAL ADEQUACY           
    Tier 1 Capital 15.37%15.11%14.27%15.37%14.27%
    Total Capital 16.57 16.30 15.30 16.57 15.30 
    Leverage 10.30 9.98 8.91 10.30 8.91 
    Common Equity Tier 1 13.52 13.26 12.38 13.52 12.38 
    Tangible Common Equity (1) 8.26 8.08 6.65 8.26 6.65 
    Equity to Assets 10.24%10.14%8.57%10.24%8.57%
    ASSET QUALITY           
    Allowance as % of Non-Performing Loans 479.70%619.58%1091.33%479.70%1091.33%
    Allowance as a % of Loans HFI 1.10 1.08 0.98 1.10 0.98 
    Net Charge-Offs as % of Average Loans HFI 0.23 0.17 0.21 0.18 0.18 
    Nonperforming Assets as % of Loans HFI and OREO 0.23 0.17 0.11 0.23 0.11 
    Nonperforming Assets as % of Total Assets 0.15%0.11%0.06%0.15%0.06%
    STOCK PERFORMANCE           
    High$32.56$33.44$36.23 36.86$36.23 
    Low 26.12 28.64 31.14 26.12 24.43 
    Close$29.43$29.83$32.50 29.43$32.50 
    Average Daily Trading Volume 33,297 26,774 31,894 33,775 27,987 
                
    (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          
               
     20232022 
    (Dollars in thousands)Fourth Quarter
    		Third Quarter
    		Second Quarter
    		First Quarter
    		 Fourth Quarter
    ASSETS          
    Cash and Due From Banks$83,118 $72,379 $83,679 $84,549 $72,114 
    Funds Sold and Interest Bearing Deposits 228,949  95,119  285,129  303,403  528,536 
    Total Cash and Cash Equivalents 312,067  167,498  368,808  387,952  600,650 
               
    Investment Securities Available for Sale 337,902  334,052  386,220  402,943  413,294 
    Investment Securities Held to Maturity 625,022  632,076  641,398  651,755  660,744 
    Other Equity Securities 3,450  3,585  1,703  1,883  10 
    Total Investment Securities 966,374  969,713  1,029,321  1,056,581  1,074,048 
               
    Loans Held for Sale 28,211  34,013  44,659  28,475  26,909 
               
    Loans Held for Investment ("HFI"):          
    Commercial, Financial, & Agricultural 225,190  221,704  227,219  236,263  247,362 
    Real Estate - Construction 196,091  197,526  226,404  253,903  234,519 
    Real Estate - Commercial 825,456  828,234  831,285  798,438  782,557 
    Real Estate - Residential 1,001,257  966,512  893,384  847,697  744,167 
    Real Estate - Home Equity 210,920  203,606  203,142  206,931  208,217 
    Consumer 270,994  285,122  295,646  305,324  324,450 
    Other Loans 2,962  1,401  5,425  7,660  5,346 
    Overdrafts 1,048  1,076  1,007  931  1,067 
    Total Loans Held for Investment 2,733,918  2,705,181  2,683,512  2,657,147  2,547,685 
    Allowance for Credit Losses (29,941) (29,083) (28,243) (26,808) (25,068)
    Loans Held for Investment, Net 2,703,977  2,676,098  2,655,269  2,630,339  2,522,617 
               
    Premises and Equipment, Net 81,266  81,677  82,062  82,055  82,138 
    Goodwill and Other Intangibles 92,933  92,973  93,013  93,053  93,093 
    Other Real Estate Owned 1  1  1  13  431 
    Other Assets 119,648  116,314  118,073  123,294  119,337 
    Total Other Assets 293,848  290,965  293,149  298,415  294,999 
    Total Assets$4,304,477 $4,138,287 $4,391,206 $4,401,762 $4,519,223 
    LIABILITIES          
    Deposits:          
    Noninterest Bearing Deposits$1,377,934 $1,472,165 $1,520,134 $1,601,388 $1,653,620 
    NOW Accounts 1,327,420  1,092,996  1,269,839  1,242,721  1,290,494 
    Money Market Accounts 319,319  304,323  321,743  271,880  267,383 
    Savings Accounts 547,634  571,003  590,245  617,310  637,374 
    Certificates of Deposit 129,515  99,958  86,905  90,621  90,446 
    Total Deposits 3,701,822  3,540,445  3,788,866  3,823,920  3,939,317 
               
    Repurchase Agreements 26,957  22,910  22,619  4,429  6,583 
    Other Short-Term Borrowings 8,384  18,786  28,054  22,203  50,210 
    Subordinated Notes Payable 52,887  52,887  52,887  52,887  52,887 
    Other Long-Term Borrowings 315  364  414  463  513 
    Other Liabilities 66,080  75,585  77,192  85,878  73,675 
    Total Liabilities 3,856,445  3,710,977  3,970,032  3,989,780  4,123,185 
               
    Temporary Equity 7,407  7,604  8,752  8,722  8,757 
    SHAREOWNERS' EQUITY          
    Common Stock 170  170  170  170  170 
    Additional Paid-In Capital 36,326  36,182  36,853  37,512  37,331 
    Retained Earnings 426,275  418,030  408,771  397,654  387,009 
    Accumulated Other Comprehensive Loss, Net of Tax (22,146) (34,676) (33,372) (32,076) (37,229)
    Total Shareowners' Equity 440,625  419,706  412,422  403,260  387,281 
    Total Liabilities, Temporary Equity and Shareowners' Equity$4,304,477 $4,138,287 $4,391,206 $4,401,762 $4,519,223 
    OTHER BALANCE SHEET DATA          
    Earning Assets$3,957,452 $3,804,026 $4,042,621 $4,045,607 $4,177,177 
    Interest Bearing Liabilities 2,412,431  2,163,227  2,372,706  2,302,514  2,395,890 
    Book Value Per Diluted Share$25.92 $24.69 $24.21 $23.65 $22.73 
    Tangible Book Value Per Diluted Share(1) 20.45  19.22  18.76  18.19  17.27 
    Actual Basic Shares Outstanding 16,950  16,958  16,992  17,022  16,987 
    Actual Diluted Shares Outstanding 17,001  16,998  17,025  17,050  17,039 
    (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              
                   
      2023 2022 Twelve Months Ended December 31,
    (Dollars in thousands, except per share data) Fourth Quarter Third Quarter Second Quarter First Quarter Fourth Quarter 2023 2022
    INTEREST INCOME              
    Loans, including Fees$40,407$39,344$37,608 $34,891$31,908$152,250$106,444
    Investment Securities 4,392 4,561 4,815  4,924 4,847 18,692 15,955
    Federal Funds Sold and Interest Bearing Deposits 1,385 1,848 2,782  4,111 4,463 10,126 9,511
    Total Interest Income 46,184 45,753 45,205  43,926 41,218 181,068 131,910
    INTEREST EXPENSE              
    Deposits 5,872 5,214 4,008  2,488 1,902 17,582 3,444
    Repurchase Agreements 199 190 115  9 7 513 14
    Other Short-Term Borrowings 310 440 336  452 683 1,538 1,747
    Subordinated Notes Payable 627 625 604  571 522 2,427 1,652
    Other Long-Term Borrowings 5 4 5  6 8 20 31
    Total Interest Expense 7,013 6,473 5,068  3,526 3,122 22,080 6,888
    Net Interest Income 39,171 39,280 40,137  40,400 38,096 158,988 125,022
    Provision for Credit Losses 2,025 2,393 2,197  3,099 3,616 9,714 7,494
    Net Interest Income after Provision for Credit Losses 37,146 36,887 37,940  37,301 34,480 149,274 117,528
    NONINTEREST INCOME              
    Deposit Fees 5,304 5,456 5,326  5,239 5,536 21,325 22,121
    Bank Card Fees 3,713 3,684 3,795  3,726 3,744 14,918 15,401
    Wealth Management Fees 4,276 3,984 4,149  3,928 3,649 16,337 18,059
    Mortgage Banking Revenues 2,327 1,839 3,363  2,871 102 10,400 11,909
    Other 1,537 1,765 3,334  1,994 2,265 8,630 7,691
    Total Noninterest Income 17,157 16,728 19,967  17,758 15,296 71,610 75,181
    NONINTEREST EXPENSE              
    Compensation 23,822 23,003 23,438  23,524 23,032 93,787 91,519
    Occupancy, Net 7,098 6,980 6,820  6,762 6,253 27,660 24,574
    Other 9,038 9,122 10,027  7,389 9,977 35,576 35,541
    Total Noninterest Expense 39,958 39,105 40,285  37,675 39,262 157,023 151,634
    OPERATING PROFIT 14,345 14,510 17,622  17,384 10,514 63,861 41,075
    Income Tax Expense 2,909 3,004 3,417  3,710 1,900 13,040 7,798
    Net Income 11,436 11,506 14,205  13,674 8,614 50,821 33,277
    Pre-Tax Loss (Income) Attributable to Noncontrolling Interest 284 1,149 (31) 35 995 1,437 135
    NET INCOME ATTRIBUTABLE TO
    COMMON SHAREOWNERS    		$11,720$12,655$14,174 $13,709$9,609$52,258$33,412
    PER COMMON SHARE              
    Basic Net Income$0.69$0.75$0.83 $0.81$0.56$3.08$1.97
    Diluted Net Income 0.70 0.74 0.83  0.80 0.56 3.07 1.97
    Cash Dividend$0.20$0.20$0.18 $0.18$0.17$0.76$0.66
    AVERAGE SHARES              
    Basic 16,947 16,985 17,002  17,016 16,963 16,987 16,951
    Diluted 16,997 17,025 17,035  17,045 17,016 17,023 16,985



    CAPITAL CITY BANK GROUP, INC.
    ALLOWANCE FOR CREDIT LOSSES ("ACL")
    AND CREDIT QUALITY
    Unaudited              
                   
      2023  2022  Twelve Months Ended December 31,
    (Dollars in thousands, except per share data) Fourth Quarter Third Quarter Second Quarter First Quarter Fourth Quarter 2023  2022 
    ACL - HELD FOR INVESTMENT LOANS              
    Balance at Beginning of Period$29,083 $28,243 $26,808 $25,068 $22,747 $25,068 $21,606 
    Transfer from Other Liabilities 66  -  -  -  -  66  - 
    Provision for Credit Losses 2,354  1,993  1,922  3,260  3,638  9,529  7,397 
    Net Charge-Offs (Recoveries) 1,562  1,153  487  1,520  1,317  4,722  3,935 
    Balance at End of Period$29,941 $29,083 $28,243 $26,808 $25,068 $29,941 $25,068 
    As a % of Loans HFI 1.10%  1.08%  1.05%  1.01%  0.98%  1.10%  0.98% 
    As a % of Nonperforming Loans 479.70%  619.58%  426.44%  584.18%  1,091.33%  479.70%  1,091.33% 
    ACL - UNFUNDED COMMITMENTS              
    Balance at Beginning of Period 3,502 $3,120 $2,833 $2,989 $3,012 $2,989 $2,897 
    Provision for Credit Losses (311) 382  287  (156) (23) 202  92 
    Balance at End of Period(1) 3,191  3,502  3,120  2,833  2,989  3,191  2,989 
    ACL - DEBT SECURITIES              
    Provision for Credit Losses$(18)$18 $(12)$(5)$1 $(17)$5 
    CHARGE-OFFS              
    Commercial, Financial and Agricultural$217 $76 $54 $164 $129 $511 $1,308 
    Real Estate - Construction -  -  -  -  -  -  - 
    Real Estate - Commercial -  -  -  120  88  120  355 
    Real Estate - Residential 79  -  -  -  -  79  - 
    Real Estate - Home Equity -  -  39  -  160  39  193 
    Consumer 1,689  1,340  993  1,732  976  5,754  2,901 
    Overdrafts 602  659  894  634  720  2,789  3,149 
    Total Charge-Offs$2,587 $2,075 $1,980 $2,650 $2,073 $9,292 $7,906 
    RECOVERIES              
    Commercial, Financial and Agricultural$83 $28 $71 $95 $25 $277 $307 
    Real Estate - Construction -  -  1  1  -  2  10 
    Real Estate - Commercial 16  17  11  8  13  52  106 
    Real Estate - Residential 34  30  132  57  98  253  284 
    Real Estate - Home Equity 17  53  131  25  36  226  183 
    Consumer 433  418  514  571  175  1,936  1,071 
    Overdrafts 442  376  633  373  409  1,824  2,010 
    Total Recoveries$1,025 $922 $1,493 $1,130 $756 $4,570 $3,971 
    NET CHARGE-OFFS (RECOVERIES)$1,562 $1,153 $487 $1,520 $1,317 $4,722 $3,935 
    Net Charge-Offs as a % of Average Loans HFI(2) 0.23%  0.17%  0.07%  0.24%  0.21%  0.18%  0.18% 
    CREDIT QUALITY              
    Nonaccruing Loans$6,242 $4,694 $6,623 $4,589 $2,297     
    Other Real Estate Owned 1  1  1  13  431     
    Total Nonperforming Assets ("NPAs")$6,243 $4,695 $6,624 $4,602 $2,728     
                   
    Past Due Loans 30-89 Days$6,854 $5,577 $4,207 $5,061 $7,829     
    Past Due Loans 90 Days or More -  -  -  -  -     
    Classified Loans 22,203  21,812  14,973  12,179  19,342     
                   
    Nonperforming Loans as a % of Loans HFI 0.23%  0.17%  0.25%  0.17%  0.09%     
    NPAs as a % of Loans HFI and Other Real Estate 0.23%  0.17%  0.25%  0.17%  0.11%     
    NPAs as a % of Total Assets 0.15%  0.11%  0.15%  0.10%  0.06%     
                   
    (1) Recorded in other liabilities    
    (2) Annualized              



    CAPITAL CITY BANK GROUP, INC.                                             
    AVERAGE BALANCE AND INTEREST RATES                                             
    Unaudited                                                   
                                                        
      Fourth Quarter 2023  Third Quarter 2023  Second Quarter 2023  First Quarter 2023  Fourth Quarter 2022   Dec 2023 YTD  Dec 2022 YTD 
    (Dollars in thousands) Average
    Balance    		 Interest Average
    Rate    		  Average
    Balance    		 Interest Average
    Rate    		  Average
    Balance    		 Interest Average
    Rate    		  Average
    Balance    		 Interest Average
    Rate    		  Average
    Balance    		 Interest Average
    Rate    		   Average
    Balance    		 Interest Average
    Rate    		  Average
    Balance    		 Interest Average
    Rate    		  
    ASSETS:                                                   
    Loans Held for Sale$49,790 $817 6.50%$62,768 $971 6.14%$54,350 $800 5.90%$55,110  644 4.74%$42,910 $582 5.38% $55,510 $3,232 5.82%$48,502 $2,175 4.49% 
    Loans Held for Investment(1) 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  2,439,379  31,409 5.11   2,656,394  149,366 5.62  2,189,440  104,578 4.78  
                                                        
    Investment Securities                                                   
    Taxable Investment Securities 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  1,078,265  4,835 1.78   1,016,550  18,652 1.83  1,098,876  15,917 1.45  
    Tax-Exempt Investment Securities(1) 862  7 4.32  2,456  17 2.66  2,656  17 2.47  2,840  18 2.36  2,827  17 2.36   2,199  59 2.68  2,668  54 2.03  
                                                        
    Total Investment Securities 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  1,081,092  4,852 1.78   1,018,749  18,711 1.83  1,101,544  15,971 1.45  
                                                        
    Federal Funds Sold and Interest Bearing Deposits 99,763  1,385 5.51  136,556  1,848 5.37  218,902  2,782 5.10  360,971  4,111 4.62  469,352  4,463 3.77   203,147  10,126 4.98  649,762  9,511 1.46  
                                                        
    Total Earning Assets 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% 4,032,733 $41,306 4.07%  3,933,800 $181,435 4.61% 3,989,248 $132,235 3.32% 
                                                        
    Cash and Due From Banks 76,681       75,941       75,854       74,639       74,178        75,786       76,929       
    Allowance for Credit Losses (29,998)      (29,172)      (27,893)      (25,637)      (22,596)       (28,190)      (21,688)      
    Other Assets 296,114       295,106       297,837       300,175       297,510        297,290       287,813       
                                                        
    Total Assets$4,166,777      $4,218,855      $4,320,601      $4,411,865      $4,381,825       $4,278,686      $4,332,302       
                                                        
    LIABILITIES:                                                   
    Noninterest Bearing Deposits$1,416,825      $1,474,574      $1,539,877      $1,601,750      $1,662,443       $1,507,657      $1,691,132       
    NOW Accounts 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% 1,133,733 $1,725 0.60%  1,172,861 $12,375 1.06% 1,065,838 $2,799 0.26% 
    Money Market Accounts 318,844  1,421 1.77  322,623  1,294 1.59  288,466  747 1.04  267,573  208 0.31  273,328  63 0.09   299,581  3,670 1.22  283,407  203 0.07  
    Savings Accounts 557,579  202 0.14  579,245  200 0.14  602,848  120 0.08  629,388  76 0.05  641,153  80 0.05   592,033  598 0.10  628,313  309 0.05  
    Time Deposits 116,797  553 1.88  95,203  231 0.96  87,973  103 0.47  89,675  52 0.24  92,385  34 0.15   97,480  939 0.96  94,646  133 0.14  
    Total Interest Bearing Deposits 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  2,140,599  1,902 0.35   2,161,955  17,582 0.81  2,072,204  3,444 0.17  
    Total Deposits 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  3,803,042  1,902 0.20   3,669,611  17,582 0.48  3,763,336  3,444 0.09  
    Repurchase Agreements 26,831  199 2.94  25,356  190 2.98  17,888  115 2.58  9,343  9 0.37  8,464  7 0.34   19,917  513 2.57  8,095  14 0.17  
    Other Short-Term Borrowings 16,906  310 7.29  24,306  440 7.17  17,834  336 7.54  37,766  452 4.86  42,380  683 6.39   24,146  1,538 6.37  32,388  1,747 5.40  
    Subordinated Notes Payable 52,887  627 4.64  52,887  625 4.62  52,887  604 4.52  52,887  571 4.32  52,887  522 3.86   52,887  2,427 4.53  52,887  1,652 3.08  
    Other Long-Term Borrowings 336  5 4.72  387  4 4.73  431  5 4.80  480  6 4.80  530  8 4.80   408  20 4.77  665  31 4.62  
    Total Interest Bearing Liabilities 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% 2,244,860 $3,122 0.55%  2,259,313 $22,080 0.98% 2,166,239 $6,888 0.32% 
                                                        
    Other Liabilities 78,772       83,099       84,305       81,206       84,585        81,842       85,684       
                                                        
    Total Liabilities 3,724,238       3,782,851       3,892,909       3,998,996       3,991,888        3,848,812       3,943,055       
    Temporary Equity 7,423       8,424       8,935       8,802       9,367        8,392       9,957       
                                                        
    SHAREOWNERS' EQUITY: 435,116       427,580       418,757       404,067       380,570        421,482       379,290       
                                                        
    Total Liabilities, Temporary Equity and Shareowners' Equity$4,166,777      $4,218,855      $4,320,601      $4,411,865      $4,381,825       $4,278,686      $4,332,302       
                                                        
    Interest Rate Spread  $39,264 3.55%  $39,367 3.54%  $40,224 3.67%  $40,500 3.77%  $38,184 3.52%   $159,355 3.63%  $125,347 3.00% 
                                                        
    Interest Income and Rate Earned(1)   46,277 4.80    45,840 4.69    45,292 4.57    44,026 4.39    41,306 4.07     181,435 4.61    132,235 3.32  
    Interest Expense and Rate Paid(2)   7,013 0.73    6,473 0.66    5,068 0.51    3,526 0.35    3,122 0.31     22,080 0.56    6,888 0.17  
                                                        
    Net Interest Margin  $39,264 4.07%  $39,367 4.03%  $40,224 4.06%  $40,500 4.04%  $38,184 3.76%   $159,355 4.05%  $125,347 3.14% 
                                                        
    (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


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