キャピタルシティバンクグループの適時開示・決算・その他

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON,

DC 20549

FORM

8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the

Securities Exchange Act of 1934

Date of Report (Date of earliest event reported):

July 23, 2024

CAPITAL CITY BANK GROUP, INC.

(Exact name of registrant as specified in its charter)

Florida

0-13358

59-2273542

(State of Incorporation)

(Commission File Number)

(IRS Employer Identification No.)

217 North Monroe Street,

Tallahassee

Florida

32301

(Address of principal executive offices

(Zip Code)

Registrant's telephone number, including

area code: (

850

)

402-7821

(Former Name or Former Address, if Changed Since Last Report)

Check the appropriate box below if the Form 8-K filing is intended

to simultaneously satisfy the filing obligation of the registrant

under any of the following provisions (see General Instruction A.2.

below):

☐

Written communications pursuant to Rule 425

under the Securities Act (17 CFR 230.425)

☐

Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐

Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange

Act (17 CFR 240.14d-2(b))

☐

Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange

Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

Title of each class

Trading Symbol(s)

Name of each exchange on which registered

Common Stock, Par value $0.01

CCBG

Nasdaq Stock Market

, LLC

Indicate by check mark whether the registrant is an emerging growth

company as defined in Rule 405 of the Securities Act of 1933

(§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of

1934 (§240.12b-2 of this chapter).

Emerging growth company

☐

If an emerging growth company,

indicate by check mark if the registrant has elected not to use the extended transition period

for

complying with any new or revised financial accounting standards pursuant

to Section 13(a) of The Exchange Act.

☐

CAPITAL CITY BANK

GROUP,

INC.

FORM 8-

CURRENT REPORT

Item 2.02.

Results of Operations and Financial Condition.

On July 23, 2024, Capital City Bank Group, Inc. (“CCBG”) issued an earnings press

release reporting CCBG’s financial

results for the three and six month periods ended June 30, 2024.

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

incorporated herein by reference.

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

the Exhibits attached hereto, shall not be deemed

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

shall it be deemed incorporated by reference in any

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

in such filing.

Item 9.01.

Financial Statements and Exhibits.

(d)

Exhibits

Item No.

Description of Exhibit

99.1

Press release, dated July 23, 2024.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has

duly caused this report to be signed

on its behalf by the undersigned hereunto duly authorized.

CAPITAL CITY BANK

GROUP,

INC.

Date:

July 23, 2024

By:

/s/ Jeptha E. Larkin

Jeptha E. Larkin,

Executive Vice President and Chief Financial Officer Capital City Bank Group, Inc.

EXHIBIT INDEX

Exhibit

Number

Description

99.1

Press release, dated July 23, 2024

EX-99.1 2 ex991.htm EXHIBIT 99.1 ex991

Reports Second Quarter 2024

Results

TALLAHASSEE, Fla.

(July 23, 2024) – Capital City Bank Group, Inc. (NASDAQ: CCBG)

today reported net income attributable to

common shareowners of $14.2 million, or $0.83 per diluted share, for

the second quarter of 2024

compared to $12.6 million, or

$0.74 per diluted share, for the first quarter of 2024, and $14.2 million, or $0.

83 per diluted share, for the second quarter of 2023.

QUARTER HIGHLIGHTS (2

Quarter 2024

versus 1

Quarter 2024)

Income Statement

●

Tax-equivalent

net interest income totaled $39.3 million compared

to $38.4 million for the prior quarter - total deposit cost

increased 10 basis points to 95 basis points

– net interest margin increased

one basis point to 4.02%

●

Stable credit quality metrics and credit

loss provision - net loan charge

-offs were 18 basis points (annualized) of average

loans –

allowance coverage ratio increased 2 basis points

to 1.09% at June 30, 2024

●

Noninterest income increased

$1.5 million, or 8.3%, due to higher mortgage banking revenues

●

Noninterest expense was well-controlled

with a $0.3 million, or 0.7%, increase for the quarter

●

Reduction in effective tax rate reflected a new investment

in a solar tax credit fund

Balance Sheet

●

Loan balances decreased $1.9 million, or

0.1% (average), and declined $40.9 million, or 1.5% (end of period)

●

Deposit balances increased by $64.5 million,

or 1.8% (average), and decreased $46.2 million,

or 1.3% (end of period)

●

Tangible

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

increased $0.72, or 3.4%

Commenting on the company's results, William G. Smith,

Jr., Capital City Bank Group Chairman,

President, and CEO, said, "I am

pleased with the quarter and how the year is progressing. Our disciplined approach resulted

in tangible book value growth of 3.4%

for the quarter, driven by margin

expansion and stable credit quality.

We are poised for

a successful year and remain focused on

initiatives that drive sustained core profitability."

Discussion of Operating Results

Net Interest Income/Net Interest

Margin

Tax-equivalent net

interest income for the second quarter of 2024

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

quarter of 2024, and $40.2 million for the second quarter of 2023.

Compared to the first quarter of 2024, the increase was primarily

due to higher overnight funds and loan interest income that was partially

offset by higher deposit interest expense.

The increase in

overnight funds interest income reflected higher average deposit balances

and the increase in loan interest income reflected existing

loans re-pricing at higher rates and new loan volume at higher rates.

The increase in deposit interest expense was attributable to

higher average money market account (“MMA”) balances

and to a lesser extent certificates of deposit (“CD”) balances and reflected

a combination of re-mix from other deposit categories and higher rates for

certain products.

Compared to the second quarter of 2023, the $0.9 million decrease was generally

driven by higher deposit interest expense and lower

overnight funds and investment interest income, which outpaced an increase

in loan interest income.

For the first six months of

2024, tax-equivalent net interest income totaled $77.8 million compared

to $80.7 million for the same period of 2023.

The decrease

was primarily driven by the same aforementioned trends.

Our net interest margin for the second quarter of 2024 was 4.02%,

an increase of one basis point over the first quarter of 2024

and a

decrease of four basis points from the second quarter of 2023.

For the month of June 2024, our net interest margin was 4.04%.

For

the first six months of 2024, our net interest margin was 4.01% compared

to 4.05% for the same period of 2023.

Compared to the

first quarter of 2024, the slight increase was primarily due to the favorable

loan repricing that was partially offset by higher deposit

cost.

The decrease from both prior year periods reflected higher deposit cost related

to re-mix within the deposit base and higher

rates paid on deposits, partially offset by higher

yields from new loan volume and existing loans repricing at higher rates.

For the

second quarter of 2024, our cost of funds was 97 basis points, an increase

of nine basis points over the first quarter of 2024 and an

increase of 46 basis points over the second quarter of 2023.

Our cost of deposits (including noninterest bearing accounts) was 95

basis points, 85 basis points, and 43 basis points, respectively,

for the same periods.

Provision for Credit Losses

We recorded

a provision for credit losses of $1.2 million for the second quarter of 2024

compared to $0.9 million for the first

quarter of 2024 and $2.2 million for the second quarter of 2023.

Compared to the first quarter of 2024, the increase in the provision

was primarily due to loan grade migration and slightly higher loss rates partially

offset by lower loan balances.

For the first six

months of 2024, we recorded a provision for credit losses of $2.1 million compared

to $5.3 million for the same period of 2023 with

the decrease driven primarily by lower new loan volume in 2024.

We discuss the allowance

for credit losses further below.

Noninterest Income and Noninterest

Expense

Noninterest income for the second quarter of 2024 totaled $19.6 million

compared to $18.1 million for the first quarter of 2024 and

$20.0 million for the second quarter of 2023.

The $1.5 million increase over the first quarter of 2024 was due to an increase in

mortgage banking revenues driven by higher production.

Compared to the second quarter of 2023, the $0.4 million decrease was

primarily attributable to a $1.7

million decrease in other income, which reflected a $1.4 million gain from

the sale of mortgage

servicing rights in the second quarter of 2023, partially offset

by a $1.0 million increase in mortgage banking revenues driven by

higher gain on sale margin,

and a $0.3 million increase in wealth management fees.

For the first six months of 2024, noninterest income totaled $37.7 million,

which is comparable to the same period of 2023 and

reflected a $2.0 million decrease in other income that was partially offset

by a $1.0 increase in wealth management fees and a $1.0

million increase in mortgage banking revenues.

The decrease in other income was primarily attributable to the aforementioned

$1.4

million gain from the sale of mortgage servicing rights in 2023.

A decrease in vendor bonus income and miscellaneous income also

contributed to the decrease.

The increase in wealth management fees was primarily driven by higher retail brokerage

fees and to a

lesser extent trust fees.

The increase in mortgage banking revenues was due to a higher gain on sale margin.

Noninterest expense for the second quarter of 2024 totaled $40.4 million

compared to $40.2 million for the first quarter of 2024 and

$40.3 million for the second quarter of 2024.

The $0.2 million increase over the first quarter of 2024 reflected a $0.2

million

increase in other expense which included the write-off

of obsolete assets from the remodeling of an office site and a core system

migration in the second quarter of 2024.

Compared to the second quarter of 2023, the $0.1 million increase reflected

a $1.0 million

increase in compensation expense and a $0.1 million increase in occupancy

expense that was partially offset by a $1.0 million

decrease in other expense.

The increase in compensation expense reflected a $0.7 million increase in salary

expense and a $0.3

million increase in associate benefit expense.

The increase in salary expense was primarily due to lower realized loan cost (credit

offset to salary expense) of $0.5 million (lower new loan volume

)

and higher base salary expense of $0.3 million.

The increase in

associate benefit expense was attributable to higher expense for associate

insurance.

The increase in occupancy expense was due to

higher expense for maintenance agreements (security upgrades).

The decrease in other expense was due to a one-time payment for

$0.8 million in the second quarter of 2023 related to a consulting engagement

for the negotiation of a new core processing

agreement.

For the first six months of 2024, noninterest expense totaled $80.6 million compared

to $78.0 million for the same period of 2023

with the $2.6 million increase attributable to increases in compensation

expense of $1.8 million, occupancy expense of $0.4 million,

and other expense of $0.4 million.

The increase in compensation expense was primarily due to a lower level of realized loan

cost

(credit offset to salary expense) of $2.0 million (lower

new loan volume) and higher base salary expense of $0.8 million (primarily

annual merit raises), partially offset by lower commission

expense of $1.1

million.

The increase in occupancy was driven by an

increase in expense for maintenance agreements (security upgrades and

addition of interactive teller machines).

The increase in

other expense reflected a $1.8 million gain from the sale of a banking office

in the first quarter of 2023 that was partially offset by

lower pension plan expense of $0.6 million (service cost) and the favorable

impact of the aforementioned one-time consulting

expense of $0.8 million in 2023.

Income Taxes

We realized income

tax expense of $3.2 million (effective rate of 18.5%) for the

second quarter of 2024

compared to $3.5 million

(effective rate of 23.0%) for the first quarter of 2024 and

$3.4 million (effective rate of 19.4%) for the second quarter of 202

For

the first six months of 2024, we realized income tax expense of $6.7 million (effective

rate of 20.6%) compared to $7.1 million

(effective rate of 20.4%) for the same period of 2023.

The decrease in our effective tax rate for the second quarter of 2024

was

primarily due to a higher level of tax benefit accrued from a new investment

in a solar tax credit equity fund.

Absent discrete items,

we expect our annual effective tax rate to approximate 20-21%

for 2024.

Discussion of Financial Condition

Earning Assets

Average earning

assets totaled $3.935 billion for the second quarter of 2024, an increase of $85.7 million, or

2.2%, over the first

quarter of 2024, and an increase of $111.3

million, or 2.9%, over the fourth quarter of 2023.

The variance for both prior period

comparisons was driven by an increase in deposit balances (see below –

Deposits

), resulting in higher levels of overnight funds

sold.

Compared to the fourth quarter of 2023, the change in the earning asset mix reflect

ed a $162.7 million increase in overnight

funds and a $15.5 million increase in loans held for investment (“HFI”)

that was partially offset by lower investment securities of

$43.4 million, and loans held for sale of $23.5 million.

Average loans

HFI decreased $1.9 million, or 0.1%, from the first quarter of 2024 and increased $15.5

million, or 0.6%, over the

fourth quarter of 2023.

Compared to the first quarter of 2024, the slight decrease was driven by a decline

in the consumer loans

(primarily indirect auto) of $19.0 million, partially offset

by increases in residential real estate loans of $10.1 million and

commercial real estate loans of $8.0 million.

Compared to the fourth quarter of 2023, the increase was primarily attributable to a

$51.8 million increase in residential real estate loans that was partially offset

by a decrease of $35.0 million in consumer loans

(primarily indirect auto).

Period end loans HFI decreased $40.9 million, or 1.5%, from the first quarter

of 2024

and decreased $43.7 million, or 1.6%, from

the fourth quarter of 2023.

Compared to the first quarter of 2024, the decline reflected a $20.0 million decrease

in consumer loans

(primarily indirect auto) and a $13.3 million decrease in commercial loans

(primarily tax-exempt loans).

The decrease from the

fourth quarter of 2023

was primarily attributable to a $36.8 million decrease in consumer loans (primarily

indirect auto) and

commercial loans of $20.2 million (primarily tax-exempt loans)

that was partially offset by a $11.3 million

increase in residential

real estate loans.

Allowance for Credit Losses

At June 30, 2024, the allowance for credit losses for HFI loans totaled $29.2

million compared to $29.3 million at March 31, 2024

and $29.9 million at December 31, 2023.

Activity within the allowance is provided on Page 9.

The slight decrease in the allowance

from March 31, 2024 reflected a lower level of net charge

-offs (18 basis points for the second quarter of 2024 versus 22 basis points

for the first quarter of 2024) that was offset by a higher

credit loss provision (see above –

Provision for Credit Losses

The

decrease in the allowance from December 31, 2023 was primarily due

to lower loan balances.

At June 30, 2024, the allowance

represented 1.09% of HFI loans compared to 1.07% at March 30, 2024,

and 1.10% at December 31, 2023.

Credit Quality

Nonperforming assets (nonaccrual loans and other real estate) totaled

$6.2 million at June 30, 2024 compared to $6.8 million at

March 31, 2024 and $6.2 million at December 31, 2023.

At June 30, 2024, nonperforming assets as a percent of total assets equaled

0.15%, compared to 0.16% at March 31, 2024 and 0.15% at December 31, 2023.

Nonaccrual loans totaled $5.5 million at June 30,

2024,

a $1.3 million decrease from March 31, 2024 and a $0.7 million decrease from December

31, 2024.

Further, classified loans

totaled $25.6 million at June 30, 2024, a $3.3 million increase over

March 31, 2024 and a $3.4 million increase over December 31,

2023.

Deposits

Average total

deposits were $3.641 billion for the second quarter of 2024, an increase of $64.5

million, or 1.8%, over the first

quarter of 2024 and an increase of $92.5 million, or 2.6%, over the fourth quarter

of 2023.

Compared to both prior periods, growth

occurred in both money market and CD balances which reflected a combination

of balances migrating from savings,

and to a lesser

extent noninterest bearing accounts,

in addition to receiving new deposits from existing and new clients via various deposit

strategies.

In addition, compared to the fourth quarter of 2023, the increase in NOW balances reflected

higher average public funds

balances as municipal tax receipts are received/deposited by those clients starting

in late November.

To a lesser extent, we have

realized NOW account inflows from new and existing business accounts which

reflected our bankers focus on deposit gathering

initiatives.

At June 30, 2024, total deposits were $3.609 billion, a decrease of $46.2

million, or 1.3%, from March 31, 2024, and a decrease of

$93.3 million, or 2.5%, from December 31, 2023.

The decreases from both prior periods was primarily due to lower NOW account

balances,

partially offset by the aforementioned growth in money

market and CD balances from both new and existing clients.

The

decline in NOW accounts primarily reflects seasonal public fund balance

activity.

Total public funds balances

were $575.0 million

at June 30, 2024, $615.0 million at March 31, 2024, and $709.8 million

at December 31, 2023.

Liquidity

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

FED funds sold less FED funds purchased) sold

position of $262.4 million in the second quarter of 2024

compared to $140.5 million in the first quarter of 2024 and $99.8 million

the fourth quarter of 2023.

Compared to both prior periods, the increase was primarily driven by higher

average deposits and

investment portfolio cash flow run-off.

At June 30, 2024, we had the ability to generate approximately $1.

500 billion (excludes overnight funds position of $273 million) in

additional liquidity through various sources including various federal funds

purchased lines, Federal Home Loan Bank borrowings,

the Federal Reserve Discount Window,

and brokered deposits.

We also view our

investment portfolio as a liquidity source as we have the option to pledge securities in

our portfolio as collateral

for borrowings or deposits, and/or to sell selected securities in our portfolio

Our portfolio consists of debt issued by the U.S.

Treasury,

U.S. governmental agencies, municipal governments, and corporate

entities.

At June 30, 2024, the weighted-average

maturity and duration of our portfolio were 2.67 years and 2.16, respectively,

and the available-for-sale portfolio had a net

unrealized tax-effected loss of $24.5 million.

Capital

Shareowners’ equity was $461.0 million at June 30, 2024 compared

to $448.3 million at March 31, 2024 and $440.6 million at

December 31, 2023.

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

income attributable to

shareowners of $26.7 million, a $1.2 million decrease in the net unrealized

loss on available for sale securities, net adjustments

totaling $0.9

million related to transactions under our stock compensation plans, stock

compensation accretion of $0.7

million, and a

$0.3 million increase in the fair value of the interest rate swap related to subordinated

debt.

Shareowners’ equity was reduced by a

common stock dividend of $7.1 million ($0.42 per share) and the repurchase

of common stock of $2.3 million (82,540 shares).

At June 30, 2024, our total risk-based capital ratio was 17.50% compared to 16.84% at

March 31, 2024 and 16.57% at December

31, 2023.

Our common equity tier 1 capital ratio was 14.44%, 13.82%, and 13.52%, respectively,

on these dates.

Our leverage ratio

was 10.51%, 10.45%, and 10.30%, respectively,

on these dates.

At June 30, 2024, all our regulatory capital ratios exceeded the

thresholds to be designated as “well-capitalized” under the Basel III

capital standards.

Further, our tangible common equity ratio

(non-GAAP financial measure) was 8.91% at June 30, 2024 compared to 8.53%

and 8.26% at March 31, 2024 and December 31,

2023,

respectively.

If our unrealized held-to-maturity securities losses of $21.7 million (after-tax)

were recognized in accumulated

other comprehensive loss, our adjusted tangible capital ratio would be

8.38%.

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 $4.2

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 105 ATM

s/ITMs in Florida, Georgia and

Alabama.

For more information about Capital City Bank Group, Inc., visit www.ccbg.com

FORWARD

-LOOKING STATEMENTS

Forward-looking statements in this Press Release are based on current plans

and expectations that are subject to uncertainties and

risks, which could cause our future results to differ materially.

The words “may,” “could,” “should,”

“would,” “believe,”

“anticipate,” “estimate,” “expect,” “intend,” “plan,” “target,” “vision,”

“goal,” and similar expressions are intended to identify

forward-looking statements. The following factors, among others, could cause our actual

results to differ: our ability to successfully

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

to our industry; legislative or regulatory changes; adverse

developments in the financial services industry; the effects

of changes in the levels 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; 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;

interest rate risk and price risk resulting from retaining mortgage

servicing rights and the effects of higher interest rates on our loan origination

volumes; changes in monetary and fiscal policies of

the U.S. Government; the cost and effects of cybersecurity

incidents or other failures, interruptions, or security breaches of our

systems or those of our customers or third-party providers; the effects

of fraud related to debit card products; the accuracy of our

financial statement estimates and assumptions; 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; the strength of the local economies in

which we operate;

our ability to declare and pay dividends; structural changes in the

markets for origination, sale and servicing of

residential mortgages; our ability to retain key personnel; the effects

of natural disasters (including hurricanes), widespread health

emergencies (including pandemics), military conflict,

terrorism, civil unrest or other geopolitical events; our ability to comply with

the extensive laws and regulations to which we are subject; the impact of the restatement

of our previously issued consolidated

statements of cash flows; any deficiencies in the processes undertaken to effect

these restatements and to identify and correct all

errors in our historical financial statements that may require restatement;

any inability to implement and maintain effective internal

control over financial reporting and/or disclosure control or inability to remediate

our existing material weaknesses in our internal

controls deemed ineffective; the willingness of clients to accept

third-party products and services rather than our products and

services; 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, 2023, and

our other filings with the SEC, which are

available at the SEC’s internet site (http://www.sec.gov).

Forward-looking statements in this Press Release speak only as of the date

of the Press Release, and we assume no obligation to update forward

-looking statements or the reasons why actual results could

differ, except as may be required

by law.

USE OF NON-GAAP FINANCIAL MEASURES

Unaudited

We present a tangible

common equity ratio and a tangible book value per diluted share that removes the effect

of goodwill and other

intangibles resulting from merger and acquisition activity.

We believe these measures

are useful to investors because it allows

investors to more easily compare our capital adequacy to other companies in the

industry.

The GAAP to non-GAAP reconciliations are provided below.

(Dollars in Thousands, except per share data)

Jun 30, 2024

Mar 31, 2024

Dec 31, 2023

Sep 30, 2023

Jun 30, 2023

Shareowners' Equity (GAAP)

460,999

448,314

440,625

419,706

412,422

Less: Goodwill and Other Intangibles (GAAP)

92,853

92,893

92,933

92,973

93,013

Tangible Shareowners' Equity (non-GAAP)

368,146

355,421

347,692

326,733

319,409

Total Assets (GAAP)

4,225,695

4,259,922

4,304,477

4,138,287

4,391,206

Less: Goodwill and Other Intangibles (GAAP)

92,853

92,893

92,933

92,973

93,013

Tangible Assets (non-GAAP)

4,132,842

4,167,029

4,211,544

4,045,314

4,298,193

Tangible Common Equity Ratio (non-GAAP)

A/B

8.91%

8.53%

8.26%

8.08%

7.43%

Actual Diluted Shares Outstanding (GAAP)

16,970,228

16,947,204

17,000,758

16,997,886

17,025,023

Tangible Book Value

per Diluted Share (non-GAAP)

A/C

21.69

20.97

20.45

19.22

18.76

CAPITAL CITY BANK

GROUP,

INC.

EARNINGS HIGHLIGHTS

Unaudited

Three Months Ended

Six Months Ended

(Dollars in thousands, except per share data)

Jun 30, 2024

Mar 31, 2024

Jun 30, 2023

Jun 30, 2024

Jun 30, 2023

EARNINGS

Net Income Attributable to Common Shareowners

14,150

12,557

14,174

26,707

27,883

Diluted Net Income Per Share

0.83

0.74

0.83

1.57

1.64

PERFORMANCE

Return on Average Assets (annualized)

1.33

1.21

1.32

1.27

1.29

Return on Average Equity (annualized)

12.23

11.07

13.58

11.66

13.67

Net Interest Margin

4.02

4.01

4.06

4.01

4.05

Noninterest Income as % of Operating Revenue

33.30

32.06

33.22

32.69

31.90

Efficiency Ratio

68.61

71.06

66.93

69.81

65.82

CAPITAL ADEQUACY

Tier 1 Capital

16.31

15.67

14.56

16.31

14.56

Total Capital

17.50

16.84

15.68

17.50

15.68

Leverage

10.51

10.45

9.54

10.51

9.54

Common Equity Tier 1

14.44

13.82

12.73

14.44

12.73

Tangible Common Equity

(1)

8.91

8.53

7.43

8.91

7.43

Equity to Assets

10.91

10.52

9.39

10.91

9.39

ASSET QUALITY

Allowance as % of Non-Performing Loans

529.79

431.46

426.44

529.79

426.44

Allowance as a % of Loans HFI

1.09

1.07

1.05

1.09

1.05

Net Charge-Offs as % of Average Loans HFI

0.18

0.22

0.07

0.20

0.15

Nonperforming Assets as % of Loans HFI and OREO

0.23

0.25

0.23

0.25

Nonperforming Assets as % of Total Assets

0.15

0.16

0.15

STOCK PERFORMANCE

High

28.58

31.34

34.16

31.34

36.86

Low

25.45

26.59

28.03

25.45

28.03

28.44

27.70

30.64

28.44

30.64

Average Daily Trading Volume

29,861

31,023

33,412

30,433

37,574

(1)

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

reconciliation to GAAP, refer to Page 6.

CAPITAL CITY BANK GROUP, INC.

CONSOLIDATED STATEMENT

OF FINANCIAL CONDITION

Unaudited

2024

2023

(Dollars in thousands)

Second Quarter

First Quarter

Fourth Quarter

Third Quarter

Second Quarter

ASSETS

Cash and Due From Banks

75,304

73,642

83,118

72,379

83,679

Funds Sold and Interest Bearing Deposits

272,675

231,047

228,949

95,119

285,129

Total Cash and Cash Equivalents

347,979

304,689

312,067

167,498

368,808

Investment Securities Available for Sale

310,941

327,338

337,902

334,052

386,220

Investment Securities Held to Maturity

582,984

603,386

625,022

632,076

641,398

Other Equity Securities

2,537

3,445

3,450

3,585

1,703

Total Investment Securities

896,462

934,169

966,374

969,713

1,029,321

Loans Held for Sale

24,022

24,705

28,211

34,013

44,659

Loans Held for Investment ("HFI"):

Commercial, Financial, & Agricultural

204,990

218,298

225,190

221,704

227,219

Real Estate - Construction

200,754

202,692

196,091

197,526

226,404

Real Estate - Commercial

823,122

823,690

825,456

828,234

831,285

Real Estate - Residential

1,012,541

1,012,791

1,001,257

966,512

893,384

Real Estate - Home Equity

211,126

214,617

210,920

203,606

203,142

Consumer

234,212

254,168

270,994

285,122

295,646

Other Loans

2,286

3,789

2,962

1,401

5,425

Overdrafts

1,192

1,127

1,048

1,076

1,007

Total Loans Held for Investment

2,690,223

2,731,172

2,733,918

2,705,181

2,683,512

Allowance for Credit Losses

(29,219)

(29,329)

(29,941)

(29,083)

(28,243)

Loans Held for Investment, Net

2,661,004

2,701,843

2,703,977

2,676,098

2,655,269

Premises and Equipment, Net

81,414

81,452

81,266

81,677

82,062

Goodwill and Other Intangibles

92,853

92,893

92,933

92,973

93,013

Other Real Estate Owned

650

Other Assets

121,311

120,170

119,648

116,314

118,073

Total Other Assets

296,228

294,516

293,848

290,965

293,149

Total Assets

4,225,695

4,259,922

4,304,477

4,138,287

4,391,206

LIABILITIES

Deposits:

Noninterest Bearing Deposits

1,343,606

1,361,939

1,377,934

1,472,165

1,520,134

NOW Accounts

1,177,180

1,212,452

1,327,420

1,092,996

1,269,839

Money Market Accounts

413,594

398,308

319,319

304,323

321,743

Savings Accounts

514,560

530,782

547,634

571,003

590,245

Certificates of Deposit

159,624

151,320

129,515

99,958

86,905

Total Deposits

3,608,564

3,654,801

3,701,822

3,540,445

3,788,866

Repurchase Agreements

22,463

23,477

26,957

22,910

22,619

Other Short-Term Borrowings

3,307

8,409

8,384

18,786

28,054

Subordinated Notes Payable

52,887

Other Long-Term Borrowings

1,009

265

315

364

414

Other Liabilities

69,987

65,181

66,080

75,585

77,192

Total Liabilities

3,758,217

3,805,020

3,856,445

3,710,977

3,970,032

Temporary Equity

6,479

6,588

7,407

7,604

8,752

SHAREOWNERS' EQUITY

Common Stock

169

170

Additional Paid-In Capital

35,547

34,861

36,326

36,182

36,853

Retained Earnings

445,959

435,364

426,275

418,030

408,771

Accumulated Other Comprehensive Loss, Net of Tax

(20,676)

(22,080)

(22,146)

(34,676)

(33,372)

Total Shareowners' Equity

460,999

448,314

440,625

419,706

412,422

Total Liabilities, Temporary Equity and Shareowners' Equity

4,225,695

4,259,922

4,304,477

4,138,287

4,391,206

OTHER BALANCE SHEET DATA

Earning Assets

3,883,382

3,921,093

3,957,452

3,804,026

4,042,621

Interest Bearing Liabilities

2,344,624

2,377,900

2,412,431

2,163,227

2,372,706

Book Value Per Diluted Share

27.17

26.45

25.92

24.69

24.21

Tangible Book Value

Per Diluted Share

(1)

21.69

20.97

20.45

19.22

18.76

Actual Basic Shares Outstanding

16,942

16,929

16,950

16,958

16,992

Actual Diluted Shares Outstanding

16,970

16,947

17,001

16,998

17,025

(1)

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

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

CAPITAL CITY BANK

GROUP,

INC.

CONSOLIDATED STATEMENT

OF OPERATIONS

Unaudited

2024

2023

Six Months Ended

June 30,

(Dollars in thousands, except per share data)

Second

Quarter

First

Quarter

Fourth

Quarter

Third

Quarter

Second

Quarter

2024

2023

INTEREST INCOME

Loans, including Fees

41,138

40,683

40,407

39,344

37,608

81,821

72,499

Investment Securities

4,004

4,244

4,392

4,561

4,815

8,248

9,739

Federal Funds Sold and Interest Bearing Deposits

3,624

1,893

1,385

1,848

2,782

5,517

6,893

Total Interest Income

48,766

46,820

46,184

45,753

45,205

95,586

89,131

INTEREST EXPENSE

Deposits

8,579

7,594

5,872

5,214

4,008

16,173

6,496

Repurchase Agreements

217

201

199

190

115

418

124

Other Short-Term Borrowings

310

440

336

107

788

Subordinated Notes Payable

630

628

627

625

604

1,258

1,175

Other Long-Term Borrowings

Total Interest Expense

9,497

8,465

7,013

6,473

5,068

17,962

8,594

Net Interest Income

39,269

38,355

39,171

39,280

40,137

77,624

80,537

Provision for Credit Losses

1,204

920

2,025

2,393

2,197

2,124

5,296

Net Interest Income after Provision for Credit Losses

38,065

37,435

37,146

36,887

37,940

75,500

75,241

NONINTEREST INCOME

Deposit Fees

5,377

5,250

5,304

5,456

5,326

10,627

10,565

Bank Card Fees

3,766

3,620

3,713

3,684

3,795

7,386

7,521

Wealth Management Fees

4,439

4,682

4,276

3,984

4,149

9,121

8,077

Mortgage Banking Revenues

4,381

2,878

2,327

1,839

3,363

7,259

6,234

Other

1,643

1,667

1,537

1,765

3,334

3,310

5,328

Total Noninterest Income

19,606

18,097

17,157

16,728

19,967

37,703

37,725

NONINTEREST EXPENSE

Compensation

24,406

24,407

23,822

23,003

23,438

48,813

46,962

Occupancy, Net

6,997

6,994

7,098

6,980

6,820

13,991

13,582

Other

9,038

8,770

9,038

9,122

10,027

17,808

17,417

Total Noninterest Expense

40,441

40,171

39,958

39,105

40,285

80,612

77,961

OPERATING PROFIT

17,230

15,361

14,345

14,510

17,622

32,591

35,005

Income Tax Expense

3,189

3,536

2,909

3,004

3,417

6,725

7,126

Net Income

14,041

11,825

11,436

11,506

14,205

25,866

27,879

Pre-Tax Loss (Income) Attributable to Noncontrolling Interest

109

732

284

1,149

(31)

841

NET INCOME ATTRIBUTABLE

COMMON SHAREOWNERS

14,150

12,557

11,720

12,655

14,174

26,707

27,883

PER COMMON SHARE

Basic Net Income

0.84

0.74

0.69

0.75

0.83

1.58

1.64

Diluted Net Income

0.83

0.74

0.70

0.74

0.83

1.57

1.64

Cash Dividend

0.21

0.20

0.18

0.42

0.36

AVERAGE

Basic

16,931

16,951

16,947

16,985

17,002

16,941

17,009

Diluted

16,960

16,969

16,997

17,025

17,035

16,964

17,040

CAPITAL CITY BANK GROUP,

INC.

ALLOWANCE FOR CREDIT LOSSES ("ACL")

AND CREDIT QUALITY

Unaudited

2024

2023

Six Months Ended

June 30,

(Dollars in thousands, except per share data)

Second

Quarter

First

Quarter

Fourth

Quarter

Third

Quarter

Second

Quarter

2024

2023

ACL - HELD FOR INVESTMENT LOANS

Balance at Beginning of Period

29,329

29,941

29,083

28,243

26,808

29,941

25,068

Transfer from Other (Assets) Liabilities

(50)

Provision for Credit Losses

1,129

932

2,354

1,993

1,922

2,061

5,182

Net Charge-Offs (Recoveries)

1,239

1,494

1,562

1,153

487

2,733

2,007

Balance at End of Period

29,219

29,329

29,941

29,083

28,243

29,219

28,243

As a % of Loans HFI

1.09%

1.07%

1.10%

1.08%

1.05%

1.09%

1.05%

As a % of Nonperforming Loans

529.79%

431.46%

479.70%

619.58%

426.44%

529.79%

426.44%

ACL - UNFUNDED COMMITMENTS

Balance at Beginning of Period

3,121

3,191

3,502

3,120

2,833

3,191

2,989

Provision for Credit Losses

(70)

(311)

382

287

(52)

131

Balance at End of Period

(1)

3,139

3,121

3,191

3,502

3,120

3,139

3,120

ACL - DEBT SECURITIES

Provision for Credit Losses

(18)

(12)

115

(17)

CHARGE-OFFS

Commercial, Financial and Agricultural

400

282

217

682

218

Real Estate - Construction

Real Estate - Commercial

120

Real Estate - Residential

Real Estate - Home Equity

Consumer

1,061

1,550

1,689

1,340

993

2,611

2,725

Overdrafts

571

638

602

659

894

1,209

1,528

Total Charge-Offs

2,032

2,563

2,587

2,075

1,980

4,595

4,630

RECOVERIES

Commercial, Financial and Agricultural

100

166

Real Estate - Construction

Real Estate - Commercial

204

223

Real Estate - Residential

132

189

Real Estate - Home Equity

131

156

Consumer

313

410

433

418

514

723

1,085

Overdrafts

342

353

442

376

633

695

1,006

Total Recoveries

793

1,069

1,025

922

1,493

1,862

2,623

NET CHARGE-OFFS (RECOVERIES)

1,239

1,494

1,562

1,153

487

2,733

2,007

Net Charge-Offs as a % of Average Loans

HFI

(2)

0.18%

0.22%

0.23%

0.17%

0.07%

0.20%

0.15%

CREDIT QUALITY

Nonaccruing Loans

5,515

6,798

6,242

4,694

6,623

Other Real Estate Owned

650

Total Nonperforming Assets ("NPAs")

6,165

6,799

6,243

4,695

6,624

Past Due Loans 30-89 Days

5,672

5,392

6,854

5,577

4,207

Classified Loans

25,566

22,305

22,203

21,812

14,973

Nonperforming Loans as a % of Loans HFI

0.21%

0.25%

0.23%

0.17%

0.25%

NPAs as a % of Loans HFI and Other Real Estate

0.23%

0.25%

0.23%

0.17%

0.25%

NPAs as a % of

Total Assets

0.15%

0.16%

0.15%

0.11%

0.15%

(1)

Recorded in other liabilities

(2)

Annualized

CAPITAL CITY BANK GROUP,

INC.

AVERAGE

BALANCE AND INTEREST RATES

Unaudited

Second Quarter 2024

First Quarter 2024

Fourth Quarter 2023

Third Quarter 2023

Second Quarter 2023

Jun 2024 YTD

Jun 2023 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

26,281

517

5.26

27,314

563

5.99

49,790

817

6.50

62,768

971

6.14

54,350

800

5.90

26,797

1,080

5.62

54,728

1,445

5.32

Loans Held for Investment

(1)

2,726,748

40,683

6.03

2,728,629

40,196

5.95

2,711,243

39,679

5.81

2,672,653

38,455

5.71

2,657,693

36,890

5.55

2,727,688

80,879

5.99

2,620,252

71,232

5.48

Investment Securities

Taxable Investment Securities

918,989

3,998

1.74

952,328

4,239

1.78

962,322

4,389

1.81

1,002,547

4,549

1.80

1,041,202

4,803

1.84

935,658

8,237

1.76

1,051,232

9,716

1.85

Tax-Exempt Investment Securities

(1)

843

4.36

856

4.34

862

4.32

2,456

2.66

2,656

2.47

850

4.35

2,747

2.41

Total Investment Securities

919,832

4,007

1.74

953,184

4,248

1.78

963,184

4,396

1.82

1,005,003

4,566

1.81

1,043,858

4,820

1.84

936,508

8,255

1.76

1,053,979

9,749

1.85

Federal Funds Sold and Interest

Bearing Deposits

262,419

3,624

5.56

140,488

1,893

5.42

99,763

1,385

5.51

136,556

1,848

5.37

218,902

2,782

5.10

201,454

5,517

5.51

289,543

6,893

4.80

Total Earning Assets

3,935,280

48,831

4.99

3,849,615

46,900

4.90

3,823,980

46,277

4.80

3,876,980

45,840

4.69

3,974,803

45,292

4.57

3,892,447

95,731

4.94

4,018,502

89,319

4.48

Cash and Due From Banks

74,803

75,763

76,681

75,941

75,854

75,283

75,250

Allowance for Credit Losses

(29,564)

(30,030)

(29,998)

(29,172)

(27,893)

(29,797)

(26,771)

Other Assets

291,669

295,275

296,114

295,106

297,837

293,473

298,999

Total Assets

4,272,188

4,190,623

4,166,777

4,218,855

4,320,601

4,231,406

4,365,980

LIABILITIES:

Noninterest Bearing Deposits

1,346,546

1,344,188

1,416,825

1,474,574

1,539,877

1,345,367

1,570,642

NOW Accounts

1,207,643

4,425

1.47

1,201,032

4,497

1.51

1,138,461

3,696

1.29

1,125,171

3,489

1.23

1,200,400

3,038

1.01

1,204,337

8,922

1.49

1,214,585

5,190

0.86

Money Market Accounts

407,387

2,752

2.72

353,591

1,985

2.26

318,844

1,421

1.77

322,623

1,294

1.59

288,466

747

1.04

380,489

4,737

2.50

278,077

955

0.69

Savings Accounts

519,374

176

0.14

539,374

188

0.14

557,579

202

0.14

579,245

200

0.14

602,848

120

0.08

529,374

364

0.14

616,045

196

0.06

Time Deposits

160,078

1,226

3.08

138,328

924

2.69

116,797

553

1.88

95,203

231

0.96

87,973

103

0.47

149,203

2,150

2.90

88,819

155

0.35

Total Interest Bearing Deposits

2,294,482

8,579

1.50

2,232,325

7,594

1.37

2,131,681

5,872

1.09

2,122,242

5,214

0.97

2,179,687

4,008

0.74

2,263,403

16,173

1.44

2,197,526

6,496

0.60

Total Deposits

3,641,028

8,579

0.95

3,576,513

7,594

0.85

3,548,506

5,872

0.66

3,596,816

5,214

0.58

3,719,564

4,008

0.43

3,608,770

16,173

0.90

3,768,168

6,496

0.35

Repurchase Agreements

26,999

217

3.24

25,725

201

3.14

26,831

199

2.94

25,356

190

2.98

17,888

115

2.58

26,362

418

3.19

13,639

124

1.83

Other Short-Term Borrowings

6,592

4.16

3,758

4.16

16,906

310

7.29

24,306

440

7.17

17,834

336

7.54

5,176

107

4.16

27,745

788

5.73

Subordinated Notes Payable

52,887

630

4.71

52,887

628

4.70

52,887

627

4.64

52,887

625

4.62

52,887

604

4.52

52,887

1,258

4.70

52,887

1,175

4.42

Other Long-Term Borrowings

258

4.31

281

4.80

336

4.72

387

4.73

431

4.80

270

4.56

455

4.80

Total Interest Bearing Liabilities

2,381,218

9,497

1.60

2,314,976

8,465

1.47

2,228,641

7,013

1.25

2,225,178

6,473

1.15

2,268,727

5,068

0.90

2,348,098

17,962

1.54

2,292,252

8,594

0.76

Other Liabilities

72,634

68,295

78,772

83,099

84,305

70,464

82,765

Total Liabilities

3,800,398

3,727,459

3,724,238

3,782,851

3,892,909

3,763,929

3,945,659

Temporary Equity

6,493

7,150

7,423

8,424

8,935

6,821

8,869

SHAREOWNERS' EQUITY:

465,297

456,014

435,116

427,580

418,757

460,656

411,452

Total Liabilities, Temporary

Equity

and Shareowners' Equity

4,272,188

4,190,623

4,166,777

4,218,855

4,320,601

4,231,406

4,365,980

Interest Rate Spread

39,334

3.38

38,435

3.43

39,264

3.55

39,367

3.54

40,224

3.67

77,769

3.40

80,725

3.73

Interest Income and Rate Earned

(1)

48,831

4.99

46,900

4.90

46,277

4.80

45,840

4.69

45,292

4.57

95,731

4.94

89,319

4.48

Interest Expense and Rate Paid

(2)

9,497

0.97

8,465

0.88

7,013

0.73

6,473

0.66

5,068

0.51

17,962

0.93

8,594

0.43

Net Interest Margin

39,334

4.02

38,435

4.01

39,264

4.07

39,367

4.03

40,224

4.06

77,769

4.01

80,725

4.05

(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.