CCBG Capital City Bank Group Inc

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 (2nd Quarter 2024 versus 1st 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 a 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 2023. 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 reflected 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 in 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 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; 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 MEASURESUnaudited

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)	A		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)	B	$	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)	C		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		0.25		0.23		0.25
Nonperforming Assets as % of Total Assets		0.15	%	0.16	%	0.15	%	0.15	%	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
Close	$	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			1			1			1			1
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			52,887			52,887			52,887			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			169			170			170			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 EndedJune 30,
(Dollars in thousands, except per share data)		SecondQuarter		FirstQuarter		FourthQuarter		ThirdQuarter		SecondQuarter			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		68		39		310		440		336			107		788
Subordinated Notes Payable		630		628		627		625		604			1,258		1,175
Other Long-Term Borrowings		3		3		5		4		5			6		11
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		4
NET INCOME ATTRIBUTABLE TOCOMMON 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	$	0.21	$	0.20	$	0.20	$	0.18		$	0.42	$	0.36
AVERAGE SHARES
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 EndedJune 30,
(Dollars in thousands, except per share data)		SecondQuarter			FirstQuarter			FourthQuarter			ThirdQuarter			SecondQuarter			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	)		66			-			-			(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		18			(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	$	57		$	58		$	(18	)	$	18		$	(12	)	$	115		$	(17	)
CHARGE-OFFS
Commercial, Financial and Agricultural	$	400		$	282		$	217		$	76		$	54		$	682		$	218
Real Estate - Construction		-			-			-			-			-			-			-
Real Estate - Commercial		-			-			-			-			-			-			120
Real Estate - Residential		-			17			79			-			-			17			-
Real Estate - Home Equity		-			76			-			-			39			76			39
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	$	59		$	41		$	83		$	28		$	71		$	100		$	166
Real Estate - Construction		-			-			-			-			1			-			2
Real Estate - Commercial		19			204			16			17			11			223			19
Real Estate - Residential		23			37			34			30			132			60			189
Real Estate - Home Equity		37			24			17			53			131			61			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			1			1			1			1
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)		AverageBalance			Interest		AverageRate			AverageBalance			Interest		AverageRate			AverageBalance			Interest		AverageRate			AverageBalance			Interest		AverageRate			AverageBalance			Interest		AverageRate				AverageBalance			Interest		AverageRate			AverageBalance			Interest		AverageRate
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			9		4.36			856			9		4.34			862			7		4.32			2,456			17		2.66			2,656			17		2.47				850			18		4.35			2,747			33		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			68		4.16			3,758			39		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			3		4.31			281			3		4.80			336			5		4.72			387			4		4.73			431			5		4.80				270			6		4.56			455			11		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.

For Information Contact:Jep LarkinExecutive Vice President and Chief Financial Officer850.402. 8450