• Capital City Bank Group, Inc. Reports Second Quarter 2024 Results

    Source: Nasdaq GlobeNewswire / 23 Jul 2024 06:00:01   America/Chicago

    TALLAHASSEE, Fla., July 23, 2024 (GLOBE NEWSWIRE) -- 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 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, 2024Mar 31, 2024Dec 31, 2023Sep 30, 2023Jun 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 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 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 TO
    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$0.21$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 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) 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) 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  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 Larkin
    Executive Vice President and Chief Financial Officer
    850.402. 8450


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