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

    来源: Nasdaq GlobeNewswire / 24 10月 2023 07:00:01   America/New_York

    TALLAHASSEE, Fla., Oct. 24, 2023 (GLOBE NEWSWIRE) --  Capital City Bank Group, Inc. (NASDAQ: CCBG) today reported net income attributable to common shareowners of $13.2 million, or $0.78 per diluted share, for the third quarter of 2023 compared to $14.6 million, or $0.85 per diluted share, for the second quarter of 2023, and $11.3 million, or $0.67 per diluted share, for the third quarter of 2022.

    For the first nine months of 2023, net income attributable to common shareowners totaled $42.7 million, or $2.51 per diluted share, compared to net income of $28.5 million, or $1.68 per diluted share, for the same period of 2022.

    QUARTER HIGHLIGHTS (3rd Quarter 2023 versus 2nd Quarter 2023)

    Income Statement

    • Tax-equivalent net interest income totaled $39.2 million compared to $40.1 million for the prior quarter and reflected higher deposit cost and lower overnight funds interest (seasonal low in public funds deposits) – total deposit cost increased 15 basis points to 58 basis points – net interest margin decreased three basis points to 4.02%
    • Continued strong credit quality metrics – slightly higher loan loss provision expense of $0.2 million increased the allowance coverage ratio from 1.05% to 1.07% - net loan charge-offs were 17 basis points (annualized) of average loans
    • Noninterest income decreased $2.7 million, or 11.8%, due to lower mortgage banking revenues of $1.0 million and a $1.4 million gain on the sale of mortgage servicing rights in second quarter of 2023
      • Capital City Home Loans realized a net loss of $0.04 per share for the quarter compared to break even for the prior quarter reflective of challenging residential mortgage secondary market conditions
    • Noninterest expense decreased $0.9 million, or 2.1%, primarily due to a non-recurring consulting payment of $0.8 million in the prior quarter related to the outsourcing of our core processing system  

    Balance Sheet

    • Loan balances grew $15.0 million, or 0.6% (average), and $26.4 million, or 1.0% (end of period)
    • Deposit balances (including repurchase agreements) declined by $115.3 million, or 3.1% (average), and $248.1 million, or 6.5% (end of period), primarily due to a seasonal low point for public fund balances
    • Tangible book value per share increased $0.50, or 2.6%, in third quarter bringing the year-to-date increase to $2.09, or 11.8%
    • Repurchased 36,411 shares of common stock in the third quarter of 2023 bringing the year-to-date total to 102,147 shares

    “The solid results achieved this quarter continue what has been a year of strong financial performance by Capital City Bank Group,” said William G. Smith, Jr., Chairman, President and CEO of Capital City Bank Group. “The diversity of our revenues, strong core deposit franchise and stable credit have been key drivers. Our associates continue to embody our client-centric culture by consistently striving to exceed expectations for our clients and serve as their trusted financial partners. As we look toward 2024, we remain focused on client acquisition and exploring opportunities to foster stronger relationships and further enhance the overall client experience.”

    Discussion of Operating Results

    Net Interest Income/Net Interest Margin

    Tax-equivalent net interest income for the third quarter of 2023 totaled $39.2 million, compared to $40.1 million for the second quarter of 2023, and $33.4 million for the third quarter of 2022. Compared to the second 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 higher interest rates. For the first nine months of 2023, tax-equivalent net interest income totaled $119.8 million compared to $86.6 million for the same period of 2022. The increases over both prior year periods were driven by strong loan growth and higher interest rates across a majority of our earning assets.

    Our net interest margin for the third quarter of 2023 was 4.02%, a decrease of three basis points from the second quarter of 2023 and an increase of 71 basis points over the third quarter of 2022. For the month of September 2023, our net interest margin was 4.10%. For the first nine months of 2023, our net interest margin was 4.03%, an increase of 112 basis points over the same period of 2022. The increase compared to all prior periods reflected a combination of higher interest rates and loan growth, partially offset by a higher cost of deposits. For the third quarter of 2023, our cost of funds was 66 basis points, an increase of 15 basis points over the second quarter of 2023 and an increase of 46 basis points over the third quarter of 2022. Our total cost of deposits (including noninterest bearing accounts) was 58 basis points, 43 basis points, and 11 basis points, respectively, for the same periods.

    Provision for Credit Losses

    We recorded a provision for credit losses of $2.4 million for the third quarter of 2023 compared to $2.2 million for the second quarter of 2023 and $2.1 million for the third quarter of 2022. The increase in the provision compared to the second quarter of 2023 was primarily attributable to loan growth and an increase in net loan charge-offs. For the first nine months of 2023, we recorded a provision for credit losses of $7.8 million compared to $3.6 million for the same period of 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 third quarter of 2023 totaled $20.2 million compared to $22.9 million for the second quarter of 2023 and $22.9 million for the third quarter of 2022. The $2.7 million decrease from the second quarter of 2023 reflected a decrease in other income of $1.5 million, mortgage banking revenues of $1.0 million, wealth management fees of $0.2 million and bank card fees of $0.1 million, partially offset by an increase in deposit fees of $0.1 million. The decrease in other income was attributable to a $1.4 million gain from the sale of mortgage servicing rights realized in the second quarter of 2023. The decrease in mortgage banking revenues was attributable to market driven lower gain on sale margins and a lower volume of mandatory delivery loan sales which provide a higher gain on sale percentage.

    Compared to the third quarter of 2022, the $2.8 million decrease in noninterest income reflected decreases in mortgage banking revenues of $2.3 million, deposit fees of $0.5 million, and bank card fees of $0.2 million, partially offset by an increase in other income of $0.2 million. For the first nine months of 2023, noninterest income totaled $65.3 million compared to $73.7 million for the same period of 2022 with the $8.4 million decrease primarily attributable to lower mortgage banking revenues of $7.5 million, wealth management fees of $2.4 million, deposit fees of $0.6 million, and bank card fees of $0.4 million, partially offset by a $2.5 million increase in other income. Compared to both prior year periods, the decrease in mortgage banking revenues was driven by lower production volume in 2023 reflective of the rapid increase in interest rates, lower market driven gain on sale margins, and a lower level of mandatory delivery loan sales. The decrease in deposit fees from both prior year periods was primarily attributable to a higher earnings credit rate for commercial deposit accounts and lower service charge fees. For the nine-month period, the decrease in wealth management fees was attributable to lower insurance commissions which reflected the sale of large policies in 2022. Further, the increase in other income was primarily due to a $1.4 million gain from the sale of mortgage servicing rights and increases in miscellaneous income of $0.5 million, loan servicing fees of $0.2 million, and vendor volume rebates of $0.2 million.  

    Noninterest expense for the third quarter of 2023 totaled $41.6 million compared to $42.5 million for the second quarter of 2023 and $39.8 million for the third quarter of 2022. Compared to the second quarter of 2023, the $0.9 million decrease was primarily due to a $0.8 million non-recurring expense in the second quarter of 2023 related to a consulting engagement to assist in negotiating a multi-year contract for the outsourcing of our core processing system.

    Compared to the third quarter of 2022, the $1.8 million increase in noninterest expense reflected increases in other expense of $1.1 million and occupancy expense of $0.8 million, partially offset by a decrease in compensation expense of $0.1 million. The increase in other expense was largely driven by a $0.7 million increase in pension plan expense (non-service-related component) and the increase in occupancy reflected the addition of four new banking offices in mid-to-late 2022 and higher property/equipment insurance premiums. For the first nine months of 2023, noninterest expense totaled $124.6 million compared to $119.5 million for the same period of 2022 with the $5.1 million increase attributable to increases in other expense of $2.7 million, occupancy expense of $2.2 million, and compensation expense of $0.2 million. The increase in other expense was primarily due to a $1.6 million increase in pension plan expense (non-service related component), the aforementioned consulting engagement expense of $0.8 million, and increases in loan servicing expense of $0.8 million, FDIC insurance expense of $0.6 million, and miscellaneous expense of $0.6 million, partially offset by lower OREO expense of $1.8 million related to a gain from the sale of a banking office. The increase in occupancy expense reflected the addition of banking offices in 2022 and higher insurance premiums. The slight unfavorable variance in compensation expense reflected a $1.7 million increase in salary expense (primarily, the addition of staffing in our new markets and annual merit) that was partially offset by a $1.5 million decrease in associate benefit expense. The variance in associate benefit expense was primarily due to a $2.2 million decrease in pension plan expense (service cost) that was partially offset by increases in associate insurance expense of $0.5 million and stock-based compensation of $0.1 million.

    Income Taxes

    We realized income tax expense of $3.2 million (effective rate of 20.9%) for the third quarter of 2023 compared to $3.5 million (effective rate of 19.6%) for the second quarter of 2023 and $3.1 million (effective rate of 21.4%) for the third quarter of 2022. For the first nine months of 2023, we realized income tax expense of $10.9 million (effective rate of 20.7%) compared to $7.5 million (effective rate of 20.3%) for the same period of 2022. The increase in our effective tax rate for the third quarter of 2023 was primarily due to 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. Further, the second quarter of 2023 effective rate reflected a higher level of tax benefit accrued from an investment in a solar tax credit equity fund. Absent discrete items or unexpected variance in the timing of the tax benefit accrued from our solar tax credit equity fund investment, we expect our annual effective tax rate to approximate 20-21% for 2023.

    Discussion of Financial Condition

    Earning Assets

    Average earning assets totaled $3.877 billion for the third quarter of 2023, a decrease of $97.8 million, or 2.5%, from the second quarter of 2023, and a decrease of $155.8 million, or 3.9%, from the fourth quarter of 2022. The decrease from both prior periods was attributable to lower deposit balances (see below – Deposits). The mix of earning assets continues to improve as overnight funds are being utilized to fund loan growth.

    Average loans held for investment (“HFI”) increased $15.0 million, or 0.6%, over the second quarter of 2023 and $233.3 million, or 9.6%, over the fourth quarter of 2022. Period end loans increased $26.4 million, or 1.0%, over the second quarter of 2023 and $168.2 million, or 6.7%, 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 September 30, 2023, the allowance for credit losses for HFI loans totaled $28.9 million compared to $28.0 million at June 30, 2023 and $24.7 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 September 30, 2023, the allowance represented 1.07% of HFI loans compared to 1.05% at June 30, 2023, and 0.98% at December 31, 2022.  

    Credit Quality

    Credit quality metrics remained strong for the quarter. Nonperforming assets (nonaccrual loans and other real estate) totaled $4.7 million at September 30, 2023 compared to $6.6 million at June 30, 2023 and $2.7 million at December 31, 2022. At September 30, 2023, nonperforming assets as a percent of total assets equaled 0.11%, compared to 0.15% at June 30, 2023 and 0.06% at December 31, 2022. Nonaccrual loans totaled $4.7 million at September 30, 2023, a $1.9 million decrease from June 30, 2023 and a $2.4 million increase over December 31, 2022. Further, classified loans totaled $21.8 million at September 30, 2023, a $6.8 million increase over June 30, 2023 and a $2.5 million increase over December 31, 2022. The increase in the current period was primarily attributable to the downgrade of one hotel loan that is performing as agreed on scheduled payments.

    Deposits

    Average total deposits were $3.597 billion for the third quarter of 2023, a decrease of $122.7 million, or 3.3%, from the second quarter of 2023 and a decrease of $206.2 million, or 5.4%, from the fourth quarter of 2022. Compared to both prior periods, the decreases were primarily attributable to lower noninterest bearing, savings, and NOW balances, partially offset by higher money market balances. Compared to the second quarter of 2023, the decrease in NOW account balances was primarily due to the seasonal reduction in public fund balances held by our institutional and municipal clients.

    At September 30, 2023, total deposits were $3.540 billion, a decrease of $248.4 million, or 6.6%, from June 30, 2023 and a decline of $398.9 million, or 10.1%, from December 31, 2022. Our public fund deposit balances declined $205 million and $245 million from June 30, 2023 and December 31, 2022, respectively, and reflected the seasonal decline in those balances which will begin to increase in the fourth quarter as municipal tax receipts are received. In addition, the decrease from June 30, 2023 reflected a short-term deposit of $103 million (in the NOW category) made late in June by a municipal client that was subsequently moved in mid-July. The remaining portion of the decrease 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 $32 million and $99 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 $25.4 million for the third quarter of 2023, an increase of $7.5 million over the second quarter of 2023 and $16.9 million over the fourth quarter of 2022. At September 30, 2023, repurchase agreement balances were $22.9 million compared to $22.6 million at June 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 $136.6 million in the third quarter of 2023 compared to $218.9 million in the second 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 September 30, 2023, we had the ability to generate approximately $1.587 billion (excludes overnight funds position of $95 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 September 30, 2023, the weighted-average maturity and duration of our portfolio were 2.90 years and 2.61 years, respectively, and the available-for-sale portfolio had a net unrealized tax-effected loss of $31.0 million.

    Capital

    Shareowners’ equity was $428.6 million at September 30, 2023 compared to $420.8 million at June 30, 2023 and $394.0 million at December 31, 2022. For the first nine months of 2023, shareowners’ equity was positively impacted by net income attributable to common shareowners of $42.7 million, a $2.4 million decrease in the unrealized loss on investment securities, the issuance of stock of $2.2 million, stock compensation accretion of $1.0 million, and a $0.4 million increase in the fair value of the interest rate swap related to subordinated debt. Shareowners’ equity was reduced by common stock dividends of $9.5 million ($0.56 per share), the repurchase of stock of $3.1 million (102,147 shares), and net adjustments totaling $1.5 million related to transactions under our stock compensation plans.

    At September 30, 2023, our total risk-based capital ratio was 16.58% compared to 15.95% at June 30, 2023 and 15.52% at December 31, 2022. Our common equity tier 1 capital ratio was 13.56%, 13.02%, and 12.64%, respectively, on these dates. Our leverage ratio was 10.19%, 9.74%, and 9.06%, respectively, on these dates. At September 30, 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 8.28% at September 30, 2023 compared to 7.61% and 6.79% at June 30, 2023 and December 31, 2022, respectively. If our unrealized held-to-maturity securities losses of $33.1 million (after-tax) were recognized in accumulated other comprehensive loss, our adjusted tangible capital ratio would be 7.46%.

    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 $4.1 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 100 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 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; 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)Sep 30, 2023Jun 30, 2023Mar 31, 2023Dec 31, 2022Sep 30, 2022
    Shareowners' Equity (GAAP) $428,610 $420,779 $411,240 $394,016 $373,165 
    Less: Goodwill and Other Intangibles (GAAP)  92,973  93,013  93,053  93,093  93,133 
    Tangible Shareowners' Equity (non-GAAP)A 335,637  327,766  318,187  300,923  280,032 
    Total Assets (GAAP)  4,147,191  4,399,563  4,409,742  4,525,958  4,332,671 
    Less: Goodwill and Other Intangibles (GAAP)  92,973  93,013  93,053  93,093  93,133 
    Tangible Assets (non-GAAP)B$4,054,218 $4,306,550 $4,316,689 $4,432,865 $4,239,538 
    Tangible Common Equity Ratio (non-GAAP)A/B 8.28% 7.61% 7.37% 6.79% 6.61%
    Actual Diluted Shares Outstanding (GAAP)C 16,997,886  17,025,023  17,049,913  17,039,401  16,998,177 
    Tangible Book Value per Diluted Share (non-GAAP)A/C$19.75 $19.25 $18.66 $17.66 $16.47 


    CAPITAL CITY BANK GROUP, INC.           
    EARNINGS HIGHLIGHTS           
    Unaudited           
                
      Three Months Ended Nine Months Ended 
    (Dollars in thousands, except per share data) Sep 30, 2023 Jun 30, 2023 Sep 30, 2022 Sep 30, 2023 Sep 30, 2022 
    EARNINGS           
    Net Income Attributable to Common Shareowners$13,202$14,551$11,315 42,707$28,483 
    Diluted Net Income Per Share$0.78$0.85$0.67 2.51$1.68 
    PERFORMANCE           
    Return on Average Assets (annualized) 1.24%1.35%1.03%1.32%0.88%
    Return on Average Equity (annualized) 12.25 13.94 11.83 13.70 10.05 
    Net Interest Margin 4.02 4.05 3.31 4.03 2.91 
    Noninterest Income as % of Operating Revenue 34.01 36.38 40.76 35.33 46.03 
    Efficiency Ratio 70.09%67.55%70.66%67.32%74.60%
    CAPITAL ADEQUACY           
    Tier 1 Capital 15.41%14.84%14.80%15.41%14.80%
    Total Capital 16.58 15.95 15.75 16.58 15.75 
    Leverage 10.19 9.74 8.91 10.19 8.91 
    Common Equity Tier 1 13.56 13.02 12.83 13.56 12.83 
    Tangible Common Equity (1) 8.28 7.61 6.61 8.28 6.61 
    Equity to Assets 10.33%9.56%8.61%10.33%8.61%
    ASSET QUALITY           
    Allowance as % of Non-Performing Loans 614.71%422.23%934.53%614.71%934.53%
    Allowance as a % of Loans HFI 1.07 1.05 0.96 1.07 0.96 
    Net Charge-Offs as % of Average Loans HFI 0.17 0.07 0.12 0.16 0.17 
    Nonperforming Assets as % of Loans HFI and OREO 0.17 0.25 0.10 0.17 0.10 
    Nonperforming Assets as % of Total Assets 0.11%0.15%0.06%0.11%0.06%
    STOCK PERFORMANCE           
    High$33.44$34.16$33.93 36.86$33.93 
    Low 28.64 28.03 27.41 28.03 24.43 
    Close$29.83$30.64$31.11 29.83$31.11 
    Average Daily Trading Volume 26,774 33,412 30,546 33,936 26,677 
                
    (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          
               
     2023  2022 
    (Dollars in thousands)Third Quarter Second Quarter First Quarter Fourth Quarter Third Quarter
    ASSETS          
    Cash and Due From Banks$72,379 $83,679 $84,549 $72,114 $72,686 
    Funds Sold and Interest Bearing Deposits 95,119  285,129  303,403  528,536  497,679 
    Total Cash and Cash Equivalents 167,498  368,808  387,952  600,650  570,365 
               
    Investment Securities Available for Sale 334,052  386,220  402,943  413,294  416,745 
    Investment Securities Held to Maturity 632,076  641,398  651,755  660,744  676,178 
    Other Equity Securities 3,585  1,703  1,883  10  1,349 
    Total Investment Securities 969,713  1,029,321  1,056,581  1,074,048  1,094,272 
               
    Loans Held for Sale 53,093  67,908  55,118  54,635  50,304 
               
    Loans Held for Investment ("HFI"):          
    Commercial, Financial, & Agricultural 221,704  227,219  236,263  247,362  246,304 
    Real Estate - Construction 197,526  226,404  253,903  234,519  237,718 
    Real Estate - Commercial 828,234  831,285  798,438  782,557  715,870 
    Real Estate - Residential 954,447  876,867  827,124  721,759  573,963 
    Real Estate - Home Equity 203,902  203,150  207,241  208,120  202,512 
    Consumer 285,122  295,646  305,324  324,450  347,949 
    Other Loans 1,401  5,425  7,660  5,346  20,822 
    Overdrafts 1,076  1,007  931  1,067  1,047 
    Total Loans Held for Investment 2,693,412  2,667,003  2,636,884  2,525,180  2,346,185 
    Allowance for Credit Losses (28,854) (27,964) (26,507) (24,736) (22,510)
    Loans Held for Investment, Net 2,664,558  2,639,039  2,610,377  2,500,444  2,323,675 
               
    Premises and Equipment, Net 81,677  82,062  82,055  82,138  81,736 
    Goodwill and Other Intangibles 92,973  93,013  93,053  93,093  93,133 
    Other Real Estate Owned 1  1  13  431  13 
    Other Assets 117,678  119,411  124,593  120,519  119,173 
    Total Other Assets 292,329  294,487  299,714  296,181  294,055 
    Total Assets$4,147,191 $4,399,563 $4,409,742 $4,525,958 $4,332,671 
    LIABILITIES          
    Deposits:          
    Noninterest Bearing Deposits$1,472,165 $1,520,134 $1,601,388 $1,653,620 $1,737,046 
    NOW Accounts 1,092,996  1,269,839  1,242,721  1,290,494  990,021 
    Money Market Accounts 304,323  321,743  271,880  267,383  292,932 
    Savings Accounts 571,003  590,245  617,310  637,374  646,526 
    Certificates of Deposit 99,958  86,905  90,621  90,446  92,853 
    Total Deposits 3,540,445  3,788,866  3,823,920  3,939,317  3,759,378 
               
    Repurchase Agreements 22,910  22,619  4,429  6,583  6,943 
    Other Short-Term Borrowings 18,786  28,054  22,203  50,210  45,328 
    Subordinated Notes Payable 52,887  52,887  52,887  52,887  52,887 
    Other Long-Term Borrowings 364  414  463  513  562 
    Other Liabilities 75,585  77,192  85,878  73,675  84,657 
    Total Liabilities 3,710,977  3,970,032  3,989,780  4,123,185  3,949,755 
               
    Temporary Equity 7,604  8,752  8,722  8,757  9,751 
    SHAREOWNERS' EQUITY          
    Common Stock 170  170  170  170  170 
    Additional Paid-In Capital 36,182  36,853  37,512  37,331  36,234 
    Retained Earnings 426,934  417,128  405,634  393,744  384,964 
    Accumulated Other Comprehensive Loss, Net of Tax (34,676) (33,372) (32,076) (37,229) (48,203)
    Total Shareowners' Equity 428,610  420,779  411,240  394,016  373,165 
    Total Liabilities, Temporary Equity and Shareowners' Equity$4,147,191 $4,399,563 $4,409,742 $4,525,958 $4,332,671 
    OTHER BALANCE SHEET DATA          
    Earning Assets$3,811,337 $4,049,361 $4,051,987 $4,182,399 $3,988,440 
    Interest Bearing Liabilities 2,163,227  2,372,706  2,302,514  2,395,890  2,128,052 
    Book Value Per Diluted Share$25.22 $24.72 $24.12 $23.12 $21.95 
    Tangible Book Value Per Diluted Share(1) 19.75  19.25  18.66  17.66  16.47 
    Actual Basic Shares Outstanding 16,958  16,992  17,022  16,987  16,962 
    Actual Diluted Shares Outstanding 16,998  17,025  17,050  17,039  16,998 
    (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 Nine Months Ended September 30,
    (Dollars in thousands, except per share data) Third Quarter Second Quarter First Quarter Fourth Quarter Third Quarter 2023 2022 
    INTEREST INCOME              
    Loans, including Fees$39,212$37,477 $34,880$31,916$27,761$111,569$73,966 
    Investment Securities 4,561 4,815  4,924 4,847 4,372 14,300 11,108 
    Federal Funds Sold and Interest Bearing Deposits 1,848 2,782  4,111 4,463 3,231 8,741 5,048 
    Total Interest Income 45,621 45,074  43,915 41,226 35,364 134,610 90,122 
    INTEREST EXPENSE              
    Deposits 5,214 4,008  2,488 1,902 1,052 11,710 1,542 
    Repurchase Agreements 190 115  9 7 5 314 6 
    Other Short-Term Borrowings 440 336  452 683 531 1,228 1,065 
    Subordinated Notes Payable 625 604  571 522 443 1,800 1,130 
    Other Long-Term Borrowings 4 5  6 8 6 15 23 
    Total Interest Expense 6,473 5,068  3,526 3,122 2,037 15,067 3,766 
    Net Interest Income 39,148 40,006  40,389 38,104 33,327 119,543 86,356 
    Provision for Credit Losses 2,443 2,219  3,130 3,521 2,099 7,792 3,641 
    Net Interest Income after Provision for Credit Losses 36,705 37,787  37,259 34,583 31,228 111,751 82,715 
    NONINTEREST INCOME              
    Deposit Fees 5,456 5,326  5,239 5,536 5,947 16,021 16,585 
    Bank Card Fees 3,684 3,795  3,726 3,744 3,860 11,205 11,657 
    Wealth Management Fees 3,984 4,149  3,928 3,649 3,937 12,061 14,410 
    Mortgage Banking Revenues 4,819 5,837  6,995 5,497 7,116 17,651 25,127 
    Other 2,237 3,766  2,360 2,546 2,074 8,363 5,876 
    Total Noninterest Income 20,180 22,873  22,248 20,972 22,934 65,301 73,655 
    NONINTEREST EXPENSE              
    Compensation 24,648 24,884  25,636 25,565 24,738 75,168 74,977 
    Occupancy, Net 6,980 6,820  6,762 6,253 6,153 20,562 18,321 
    Other 10,014 10,830  8,057 10,469 8,919 28,901 26,243 
    Total Noninterest Expense 41,642 42,534  40,455 42,287 39,810 124,631 119,541 
    OPERATING PROFIT 15,243 18,126  19,052 13,268 14,352 52,421 36,829 
    Income Tax Expense 3,190 3,544  4,133 2,599 3,074 10,867 7,486 
    Net Income 12,053 14,582  14,919 10,669 11,278 41,554 29,343 
    Pre-Tax Loss (Income) Attributable to Noncontrolling Interest 1,149 (31) 35 995 37 1,153 (860)
    NET INCOME ATTRIBUTABLE TO
    COMMON SHAREOWNERS    		$13,202$14,551 $14,954$11,664$11,315$42,707$28,483 
    PER COMMON SHARE              
    Basic Net Income$0.78$0.86 $0.88$0.69$0.67$2.52$1.68 
    Diluted Net Income 0.78 0.85  0.88 0.68 0.67 2.51 1.68 
    Cash Dividend$0.20$0.18 $0.18$0.17$0.17$0.56$0.49 
    AVERAGE SHARES              
    Basic 16,985 17,002  17,016 16,963 16,960 17,001 16,947 
    Diluted 17,025 17,035  17,045 17,016 16,996 17,031 16,973 


    CAPITAL CITY BANK GROUP, INC.              
    ALLOWANCE FOR CREDIT LOSSES ("ACL")            
    AND CREDIT QUALITY              
    Unaudited              
                   
      2023  2022  Nine Months Ended
    September 30,
    (Dollars in thousands, except per share data) Third
    Quarter    		 Second
    Quarter    		 First
    Quarter    		 Fourth
    Quarter    		 Third
    Quarter    		 2023  2022 
    ACL - HELD FOR INVESTMENT LOANS              
    Balance at Beginning of Period$27,964 $26,507 $24,736 $22,510 $21,281 $24,736 $21,606 
    Provision for Credit Losses 2,043  1,944  3,291  3,543  1,931  7,278  3,522 
    Net Charge-Offs (Recoveries) 1,153  487  1,520  1,317  702  3,160  2,618 
    Balance at End of Period$28,854 $27,964 $26,507 $24,736 $22,510 $28,854 $22,510 
    As a % of Loans HFI 1.07% 1.05% 1.01% 0.98% 0.96% 1.07% 0.96%
    As a % of Nonperforming Loans 614.71% 422.23% 577.63% 1,076.89% 934.53% 614.71% 934.53%
    ACL - UNFUNDED COMMITMENTS              
    Balance at Beginning of Period 3,120 $2,833 $2,989 $3,012 $2,853 $2,989 $2,897 
    Provision for Credit Losses 382  287  (156) (23) 159  513  115 
    Balance at End of Period(1) 3,502  3,120  2,833  2,989  3,012  3,502  3,012 
    ACL - DEBT SECURITIES              
    Provision for Credit Losses$18 $(12)$(5)$1 $9 $1 $4 
    CHARGE-OFFS              
    Commercial, Financial and Agricultural$76 $54 $164 $129 $2 $294 $1,179 
    Real Estate - Construction -  -  -  -  -  -  - 
    Real Estate - Commercial -  -  120  88  1  120  267 
    Real Estate - Home Equity -  39  -  160  -  39  33 
    Consumer 1,340  993  1,732  976  770  4,065  1,925 
    Overdrafts 659  894  634  720  989  2,187  2,429 
    Total Charge-Offs$2,075 $1,980 $2,650 $2,073 $1,762 $6,705 $5,833 
    RECOVERIES              
    Commercial, Financial and Agricultural$28 $71 $95 $25 $58 $194 $282 
    Real Estate - Construction -  1  1  -  2  2  10 
    Real Estate - Commercial 17  11  8  13  8  36  93 
    Real Estate - Residential 30  132  57  98  44  219  186 
    Real Estate - Home Equity 53  131  25  36  22  209  147 
    Consumer 418  514  571  175  260  1,503  896 
    Overdrafts 376  633  373  409  666  1,382  1,601 
    Total Recoveries$922 $1,493 $1,130 $756 $1,060 $3,545 $3,215 
    NET CHARGE-OFFS (RECOVERIES)$1,153 $487 $1,520 $1,317 $702 $3,160 $2,618 
    Net Charge-Offs as a % of Average Loans HFI(2) 0.17% 0.07% 0.24% 0.21% 0.12% 0.16% 0.17%
    CREDIT QUALITY              
    Nonaccruing Loans$4,694 $6,623 $4,589 $2,297 $2,409     
    Other Real Estate Owned 1  1  13  431  13     
    Total Nonperforming Assets ("NPAs")$4,695 $6,624 $4,602 $2,728 $2,422     
                   
    Past Due Loans 30-89 Days$5,577 $4,207 $5,061 $7,829 $6,263     
    Past Due Loans 90 Days or More -  -  -  -  -     
    Classified Loans 21,812  14,973  12,179  19,342  20,988     
                   
    Nonperforming Loans as a % of Loans HFI 0.17% 0.25% 0.17% 0.09% 0.10%    
    NPAs as a % of Loans HFI and Other Real Estate 0.17% 0.25% 0.17% 0.11% 0.10%    
    NPAs as a % of Total Assets 0.11% 0.15% 0.10% 0.06% 0.06%    
                   
    (1) Recorded in other liabilities              
    (2) Annualized              



    CAPITAL CITY BANK GROUP, INC.                                             
    AVERAGE BALANCE AND INTEREST RATES                                             
    Unaudited                                                   
                                                        
      Third Quarter 2023  Second Quarter 2023  First Quarter 2023  Fourth Quarter 2022  Third Quarter 2022   Sep 2023 YTD  Sep 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$62,768 $971 6.14%$54,350 $801 5.90%$55,110 $644 4.74%$42,910  581 5.38%$55,164 $486 4.82% $57,438 $2,416 5.62%$50,387 $1,594 4.23% 
    Loans Held for Investment(1) 2,672,653  38,323 5.69  2,657,693  36,758 5.55  2,582,395  34,331 5.39  2,439,379  31,418 5.11  2,264,075  27,354 4.76   2,637,911  109,412 5.55  2,105,211  72,598 4.61  
                                                        
    Investment Securities                                                   
    Taxable Investment Securities 1,002,547  4,549 1.80  1,041,202  4,804 1.84  1,061,372  4,912 1.86  1,078,265  4,835 1.78  1,117,789  4,359 1.55   1,034,825  14,265 1.84  1,105,822  11,082 1.34  
    Tax-Exempt Investment Securities(1) 2,456  17 2.66  2,656  16 2.47  2,840  17 2.36  2,827  17 2.36  2,939  17 2.30   2,649  50 2.49  2,614  37 1.90  
                                                        
    Total Investment Securities 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  1,120,728  4,376 1.55   1,037,474  14,315 1.84  1,108,436  11,119 1.34  
                                                        
    Federal Funds Sold and Interest Bearing Deposits 136,556  1,848 5.37  218,902  2,782 5.10  360,971  4,111 4.62  469,352  4,463 3.77  569,984  3,231 2.25   237,987  8,741 4.91  710,559  5,048 0.95  
                                                        
    Total Earning Assets 3,876,980 $45,708 4.68% 3,974,803 $45,161 4.56% 4,062,688 $44,015 4.39% 4,032,733 $41,314 4.07% 4,009,951 $35,447 3.51%  3,970,810 $134,884 4.54% 3,974,593 $90,359 3.04% 
                                                        
    Cash and Due From Banks 75,941       75,854       74,639       74,178       79,527        75,483       77,856       
    Allowance for Credit Losses (29,172)      (27,893)      (25,637)      (22,596)      (21,509)       (27,581)      (21,382)      
    Other Assets 295,106       297,837       300,175       297,510       289,709        297,688       284,546       
                                                        
    Total Assets$4,218,855      $4,320,601      $4,411,865      $4,381,825      $4,357,678       $4,316,400      $4,315,613       
                                                        
    LIABILITIES:                                                   
    Noninterest Bearing Deposits$1,474,574      $1,539,877      $1,601,750      $1,662,443      $1,726,918       $1,538,268      $1,700,800       
    NOW Accounts 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% 1,016,475 $868 0.34%  1,184,453 $8,679 0.98% 1,042,958 $1,074 0.14% 
    Money Market Accounts 322,623  1,294 1.59  288,466  747 1.04  267,573  208 0.31  273,328  63 0.09  288,758  71 0.10   293,089  2,249 1.03  286,804  140 0.07  
    Savings Accounts 579,245  200 0.14  602,848  120 0.08  629,388  76 0.05  641,153  80 0.05  643,640  80 0.05   603,643  396 0.09  623,986  229 0.05  
    Time Deposits 95,203  231 0.96  87,973  103 0.47  89,675  52 0.24  92,385  34 0.15  94,073  33 0.14   90,970  386 0.57  95,408  99 0.14  
    Total Interest Bearing Deposits 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  2,042,946  1,052 0.20   2,172,155  11,710 0.72  2,049,156  1,542 0.10  
    Total Deposits 3,596,816  5,214 0.58  3,719,564  4,008 0.43  3,817,314  2,488 0.26  3,803,041  1,902 0.20  3,769,864  1,052 0.11   3,710,423  11,710 0.42  3,749,956  1,542 0.05  
    Repurchase Agreements 25,356  190 2.98  17,888  115 2.58  9,343  9 0.37  8,464  7 0.34  11,665  5 0.18   17,588  314 2.39  7,971  6 0.11  
    Other Short-Term Borrowings 24,306  440 7.17  17,834  336 7.54  37,766  452 4.86  42,380  683 6.39  35,014  531 6.01   26,586  1,228 6.17  29,020  1,065 4.90  
    Subordinated Notes Payable 52,887  625 4.62  52,887  604 4.52  52,887  571 4.32  52,887  522 3.86  52,887  443 3.28   52,887  1,800 4.49  52,887  1,130 2.82  
    Other Long-Term Borrowings 387  4 4.73  431  5 4.80  480  6 4.80  530  8 4.80  580  6 4.74   433  15 4.78  710  23 4.58  
    Total Interest Bearing Liabilities 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% 2,143,092 $2,037 0.38%  2,269,649 $15,067 0.89% 2,139,744 $3,766 0.24% 
                                                        
    Other Liabilities 83,099       84,305       81,206       84,585       98,501        82,877       86,055       
                                                        
    Total Liabilities 3,782,851       3,892,909       3,998,996       3,991,888       3,968,511        3,890,794       3,926,599       
    Temporary Equity 8,424       8,935       8,802       9,367       9,862        8,719       10,156       
                                                        
    SHAREOWNERS' EQUITY: 427,580       418,757       404,067       380,570       379,305        416,887       378,858       
                                                        
    Total Liabilities, Temporary Equity and Shareowners' Equity$4,218,855      $4,320,601      $4,411,865      $4,381,825      $4,357,678       $4,316,400      $4,315,613       
                                                        
    Interest Rate Spread  $39,235 3.52%  $40,093 3.66%  $40,489 3.77%  $38,192 3.52%  $33,410 3.13%   $119,817 3.65%  $86,593 2.80% 
                                                        
    Interest Income and Rate Earned(1)   45,708 4.68    45,161 4.56    44,015 4.39    41,314 4.07    35,447 3.51     134,884 4.54    90,359 3.04  
    Interest Expense and Rate Paid(2)   6,473 0.66    5,068 0.51    3,526 0.35    3,122 0.31    2,037 0.20     15,067 0.51    3,766 0.13  
                                                        
    Net Interest Margin  $39,235 4.02%  $40,093 4.05%  $40,489 4.04%  $38,192 3.76%  $33,410 3.31%   $119,817 4.03%  $86,593 2.91% 
                                                        
    (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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