• Capital City Bank Group, Inc. Reports Fourth Quarter 2022 Results

    Источник: Nasdaq GlobeNewswire / 24 янв 2023 06:00:02   America/Chicago

    TALLAHASSEE, Fla., Jan. 24, 2023 (GLOBE NEWSWIRE) -- Capital City Bank Group, Inc. (NASDAQ: CCBG) today reported net income attributable to common shareowners of $11.7 million, or $0.68 per diluted share, for the fourth quarter of 2022 compared to net income of $11.3 million, or $0.67 per diluted share, for the third quarter of 2022, and $6.4 million, or $0.38 per diluted share, for the fourth quarter of 2021.

    For the full year of 2022, net income attributable to common shareowners totaled $40.1 million, or $2.36 per diluted share, compared to net income of $33.4 million, or $1.98 per diluted share, for the same period of 2021.

    QUARTER HIGHLIGHTS (4th Quarter 2022 versus 3rd Quarter 2022)

    • Continued strong growth in net interest income of 14% - net interest margin percentage grew 45 basis points to 3.76% - deposit cost well controlled at 20 basis points (total deposits) and 35 basis points (interest bearing deposits)
    • Loan growth of $179 million, or 7.6% (end of period) and $175 million, or 7.7% (average)
    • Continued strong credit quality metrics – higher credit loss provision primarily driven by loan growth
    • Noninterest income decreased $1.9 million, or 8.5%, primarily due to lower mortgage banking revenues at CCHL – strong adjustable rate portfolio production by CCHL contributed to loan growth for the quarter
    • Noninterest expense included a pension settlement charge of $1.8 million, or $0.08 per share
    • Tangible book value per share increased $1.19, or 7.2%, primarily due to strong earnings and a favorable re-measurement adjustment for pension plan

    Full Year 2022 HIGHLIGHTS

    • Strong growth in net interest income of 21% reflected improved earning asset mix and strength of deposit franchise
    • Loan growth of $594 million, or 30.7% (end of period) and $189 million, or 9.4% (year-to-date average)
    • Average Deposits grew $356 million, or 10.5%
    • CCHL contribution decreased $0.24 per share due to slower secondary market loan sales, but was more than offset by strong adjustable rate production for our loan portfolio, and higher wealth and deposit fees
    • Noninterest expense included pension settlement charges totaling $2.3 million or $0.11 per share
    • Tangible book value per share increased $0.54, or 3.2%, primarily due to strong earnings and a favorable re-measurement adjustment for pension plan, partially offset by higher unrealized investment security losses

    “Capital City finished out the year with another solid quarter highlighted by continued net interest margin expansion and nice tangible book value growth,” said William G. Smith, Jr., Chairman, President, and CEO of Capital City Bank Group. “I am proud of our associates who produced another record year of earnings. For the quarter and year, we realized strong loan growth, stable deposit growth, maintained good control of our deposit cost, and credit quality was strong. Still, we remain vigilant in the face of economic uncertainty. As we begin 2023, I am confident in our positioning, markets and strategic initiatives. Thank you to our associates for their tireless efforts serving our clients with excellence and to our shareowners for their continued support.”

    Discussion of Operating Results

    Net Interest Income/Net Interest Margin

    Tax-equivalent net interest income for the fourth quarter of 2022 totaled $38.2 million, compared to $33.4 million for the third quarter of 2022, and $24.8 million for the fourth quarter of 2021. For the full year of 2022, tax-equivalent net interest income totaled $124.8 million compared to $103.2 million for the same period of 2021. Compared to the third quarter of 2022, the increase primarily reflected strong loan growth and higher interest rates across a majority of our earning assets. Compared to both prior year periods, the increase reflected strong loan growth, higher interest rates, and growth in the investment portfolio.

    Our net interest margin for the fourth quarter of 2022 was 3.76%, an increase of 45 basis points over the third quarter of 2022 and 116 basis points over the fourth quarter of 2021, both driven by higher interest rates and an overall improved earning asset mix. For the fourth quarter of 2022, our cost of funds was 31 basis points, an increase of 11 basis points over the third quarter of 2022 and 22 basis points over the fourth quarter of 2021. Our cost of interest bearing deposits was 35 basis points, 20 basis points, and 4 basis points for the same aforementioned periods. For the month of December 2022, our net interest margin was 3.86%. Compared to the full year of 2021, the net interest margin increased by 30 basis points to 3.13% as the favorable impact of higher interest rates and an improved earning asset mix offset the favorable impact in 2021 from a significant level of SBA Paycheck Protection Program fee income.

    Provision for Credit Losses

    We recorded a provision for credit losses of $3.5 million for the fourth quarter of 2022 compared to $2.1 million in the third quarter of 2022 and no provision for the fourth quarter of 2021. For the full year of 2022, the provision was $7.2 million compared to a benefit of $1.6 million for the same period of 2021. The higher level of provision compared to all prior periods was primarily attributable to strong loan growth and weaker projected economic conditions, primarily a higher rate of unemployment. The credit loss provision in 2021 was favorably impacted by strong loan recoveries. We discuss the allowance for credit losses further below. 

    Noninterest Income and Noninterest Expense

    Noninterest income for the fourth quarter of 2022 totaled $21.0 million compared to $22.9 million for the third quarter of 2022 and $24.7 million for the fourth quarter of 2021. The $1.9 million decrease from the third quarter of 2022 was attributable to lower mortgage banking revenues of $1.6 million, wealth management fees of $0.3 million, deposit fees of $0.4 million, and bank card fees of $0.1 million, partially offset by higher other income of $0.5 million. The decrease in deposit fees was partially attributable to three less processing days in the fourth quarter. Compared to the fourth quarter of 2021, the $3.7 million decrease was attributable to lower mortgage banking revenues of $4.3 million, wealth management fees of $0.1 million, and bank card fees of $0.1 million, partially offset by higher other income of $0.6 million and deposit fees of $0.2 million.

    For the full year of 2022, noninterest income totaled $94.6 million compared to $107.5 million for the same period of 2021 and reflected lower mortgage banking revenues of $21.8 million, partially offset by higher wealth management fees of $4.4 million, deposit fees of $3.2 million, other income of $1.2 million, and bank card fees of $0.1 million. Lower mortgage banking revenues at Capital City Home Loans (“CCHL”) for 2022 reflected a reduction in refinancing activity and, to a lesser degree, lower purchase mortgage originations primarily driven by higher interest rates. In addition, gain on sale margins were pressured due to a lower level of governmental loan originations and mandatory delivery loan sales (both of which provide a higher gain on sale percentage). Throughout 2022, strong best efforts origination volume allowed us to book a steady flow of adjustable rate residential loans in our portfolio which contributed to loan growth and earnings. In addition, continued stability in our construction/permanent loan program partially offset the slowdown in secondary market originations. For 2022, CCHL realized a $0.2 million net loss ($0.01 per diluted share) versus $3.9 million net income ($0.23 per diluted share) in 2021.

    Noninterest expense for the fourth quarter of 2022 totaled $42.3 million compared to $39.8 million for the third quarter of 2022 and $40.2 million for the fourth quarter of 2021. The $2.5 million increase over the third quarter of 2022 was primarily attributable to higher other expense of $1.6 million and compensation expense of $0.8 million. Higher pension plan settlement expense of $1.7 million drove the increase in other expense. The increase in compensation expense was primarily due to higher variable/performance-based compensation of $0.3 million and lower realized loan cost of $0.3 million (credit offset to salary expense). Compared to the fourth quarter of 2021, the $2.1 million increase reflected higher other expense of $1.0 million, compensation expense of $0.8 million, and occupancy expense of $0.3 million. The increase in other expense reflected higher expense for legal, travel/entertainment, FDIC insurance fees, mortgage servicing right amortization, and loan servicing costs. The higher level of compensation expense was due to higher base salary expense reflective of annual merit raises and staffing additions related to new market expansion during 2022 and stock based compensation expense related to improved company performance for 2022.

    For the full year 2022, noninterest expense totaled $161.8 million compared to $162.5 million for the same period of 2021 and reflected lower compensation expense of $0.9 million and other expense of $0.4 million, partially offset by higher occupancy expense of $0.6 million. The reduction in compensation expense was primarily due to lower variable/performance-based compensation of $7.7 million and base salaries of $1.3 million at CCHL, partially offset by higher compensation at Capital City Bank, including variable/performance-based compensation totaling $2.5 million, base salaries (merit and new market staffing additions) of $3.1 million, lower realized loan cost of $1.4 million (credit offset to salary expense), associate insurance expense (utilized self-insurance reserves in 2021) of $0.6 million and stock compensation expense of $0.7 million. The decrease in other expense was primarily due to a decrease in pension related costs, including $4.9 million for the non-service related component and $0.8 million for pension plan settlement expense, partially offset by higher expense for other real estate expense of $1.2 million, travel/entertainment and advertising costs totaling $1.3 million (return to pre-pandemic levels and market expansion), other losses of $0.9 million (primarily debit card and check fraud), mortgage servicing right amortization of $0.6 million, VISA Class B share swap conversion ratio payments of $0.4 million, FDIC insurance fees of $0.3 million, and other miscellaneous costs for training, hiring, and variable expenses related to loan production. Gains from the sale of two banking offices in 2021 drove the increase in other real estate expense. The increase in occupancy expense is related to lease expense for four new banking offices added in 2022 and various software purchases, including network security and end of life upgrades.

    Income Taxes

    We realized income tax expense of $2.6 million (effective rate of 19.6%) for the fourth quarter of 2022 compared to $3.1 million (effective rate of 21.4%) for the third quarter of 2022 and $2.0 million (effective rate of 22.2%) for the fourth quarter of 2021. The decrease in the effective tax rate for the fourth quarter of 2022 was due to a favorable $0.4 million discrete tax item related to our SERP plan. For the full year of 2022, we realized income tax expense of $10.1 million (effective rate of 20.1%) compared to $9.8 million (effective rate of 19.9%) for the same period of 2021. Absent discrete items, we expect our annual effective tax rate to approximate 21%-22% in 2023.

    Discussion of Financial Condition

    Earning Assets

    Average earning assets totaled $4.033 billion for the fourth quarter of 2022, an increase of $22.8 million, or 0.6%, over the third quarter of 2022, and an increase of $241.4 million, or 6.4%, over the fourth quarter of 2021. The increase over both prior periods was primarily driven by higher deposit balances (see below – Funding). The mix of earning assets continues to improve driven by strong loan growth.

    We maintained an average net overnight funds (interest bearing deposits with banks plus FED funds sold less FED funds purchased) sold position of $469.4 million in the fourth quarter of 2022 compared to $570.0 million in the third quarter of 2022 and $789.1 million in the fourth quarter of 2021. The declining overnight funds position reflects growth in average loans.

    Average loans held for investment (“HFI”) increased $175.3 million, or 7.7%, over the third quarter of 2022 and $491.1 million, or 25.2%, over the fourth quarter of 2021. Period end loans increased $179.0 million, or 7.6%, over the third quarter of 2022 and $593.7 million, or 30.7%, over the fourth quarter of 2021. The growth in 2022 was broad based with increases realized in all loan categories, more significantly, in the residential real estate, construction, and commercial real estate categories.

    Allowance for Credit Losses

    At December 31, 2022, the allowance for credit losses for HFI loans totaled $24.7 million compared to $22.5 million at September 30, 2022 and $21.6 million at December 31, 2021. Activity within the allowance is provided on Page 12. Incremental allowance related to loan growth, a higher projected rate of unemployment and its effect on rates of default, and slower prepayment speeds (due to higher interest rates) were all contributing factors driving the increase in the allowance during 2022. At December 31, 2022, the allowance represented 0.98% of HFI loans compared to 0.96% at September 30, 2022, and 1.12% at December 31, 2021.

    Credit Quality

    Overall credit quality remains strong. Nonperforming assets (nonaccrual loans and other real estate) totaled $2.7 million at December 31, 2022 compared to $2.4 million at September 30, 2022 and $4.3 million at December 31, 2021. At December 31, 2022, nonperforming assets as a percent of total assets equaled 0.06%, compared to 0.06% at September 30, 2022 and 0.10% at December 31, 2021. Nonaccrual loans totaled $2.2 million at December 31, 2022, a $0.2 million decrease from September 30, 2022 and a $2.1 million decrease from December 31, 2021. Further, classified loans totaled $19.3 million at December 31, 2022, a $1.6 million decrease from September 30, 2022 and a $1.4 million increase over December 31, 2021.

    Funding (Deposits/Debt)

    Average total deposits were $3.803 billion for the fourth quarter of 2022, an increase of $33.2 million, or 0.9%, over the third quarter of 2022 and $253.9 million, or 7.2%, over the fourth quarter of 2021. Compared to the third quarter of 2022, the increase reflected higher NOW account balances, primarily due to a seasonal increase in our public fund deposits. Compared to the fourth quarter of 2021, we have had strong growth in our noninterest bearing, NOW, and savings account balances. We continue to closely monitor our cost of deposits and deposit mix as we manage through this rising rate environment.

    Capital

    Shareowners’ equity was $394.0 million at December 31, 2022 compared to $373.2 million at September 30, 2022 and $383.2 million at December 31, 2021. For the full year 2022, shareowners’ equity was positively impacted by net income attributable to common shareowners of $40.1 million, a $3.1 million increase in the fair value of the interest rate swap related to subordinated debt, stock compensation accretion of $1.3 million, net adjustments totaling $1.6 million related to transactions under our stock compensation plans, and an $8.7 million decrease in the accumulated other comprehensive loss for our pension plan. Shareowners’ equity was reduced by common stock dividends of $11.2 million ($0.66 per share) and a $32.8 million increase in the unrealized loss on investment securities.

    At December 31, 2022, our total risk-based capital ratio was 15.52% compared to 15.75% at September 30, 2022 and 17.15% at December 31, 2021. Our common equity tier 1 capital ratio was 12.64%, 12.83%, and 13.86%, respectively, on these dates. Our leverage ratio was 9.06%, 8.91%, and 8.95%, respectively, on these dates. Further, our tangible common equity ratio was 6.79% at December 31, 2022 compared to 6.61% and 6.95% at September 30, 2022 and December 31, 2021, respectively. The decline in our regulatory capital ratios compared to 2021 was attributable to strong loan growth during 2022. At December 31, 2022, all of our regulatory capital ratios exceeded the threshold to be designated as “well-capitalized” under the Basel III capital standards.

    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 $4.5 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 58 banking offices and 89 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; fluctuations in inflation, interest rates, or monetary and fiscal policies; the effects of security breaches and computer viruses that may affect our computer systems; the accuracy of our financial statement estimates and assumptions; fraud related to debit card products; changes in accounting principles, policies, practices, or guidelines; the frequency and magnitude of foreclosure on our loans; the effects of a non-diversified loan portfolio, including the risks of geographic and industry concentrations; the strength of the U.S. economy and the local economies where we conduct operations; our ability to declare and pay dividends, the payment of which is subject to our capital requirements; changes in the stock market and other capital and real estate markets; structural changes in the markets for origination, sale and servicing of residential mortgages; uncertainty in the pricing of residential mortgage loans that we sell, as well as competition for the mortgage servicing rights related to these loans and related interest rate risk or price risk resulting from retaining mortgage servicing rights and the potential effects of higher interest rates on our loan origination volumes; the effect of corporate restructuring, acquisitions or dispositions, including the actual restructuring and other related charges and the failure to achieve the expected gains, revenue growth or expense savings from such corporate restructuring, acquisitions or dispositions; the effects of natural disasters, harsh weather conditions (including hurricanes), widespread health emergencies (including pandemics, such as the COVID-19 pandemic), military conflict, terrorism, civil unrest or other geopolitical events; our ability to comply with the extensive laws and regulations to which we are subject, including the laws for each jurisdiction where we operate; the willingness of clients to accept third-party products and services rather than our products and services and vice versa; increased competition and its effect on pricing; technological changes; the outcomes of litigation or regulatory proceedings; negative publicity and the impact on our reputation; changes in consumer spending and saving habits; growth and profitability of our noninterest income; the limited trading activity of our common stock; the concentration of ownership of our common stock; anti-takeover provisions under federal and state law as well as our Articles of Incorporation and our Bylaws; other risks described from time to time in our filings with the Securities and Exchange Commission; and our ability to manage the risks involved in the foregoing. Additional factors can be found in our Annual Report on Form 10-K for the fiscal year ended December 31, 2021, and our other filings with the SEC, which are available at the SEC’s internet site (http://www.sec.gov). Forward-looking statements in this Press Release speak only as of the date of the Press Release, and we assume no obligation to update forward-looking statements or the reasons why actual results could differ.

    USE OF NON-GAAP FINANCIAL MEASURES

    We present a tangible common equity ratio and a tangible book value per diluted share that removes the effect of goodwill and other intangibles resulting from merger and acquisition activity. We believe these measures are useful to investors because it allows investors to more easily compare our capital adequacy to other companies in the industry.

    The GAAP to non-GAAP reconciliations are provided below.

    (Dollars in Thousands, except per share data)Dec 31, 2022Sep 30, 2022Jun 30, 2022Mar 31, 2022Dec 31, 2021
    Shareowners' Equity (GAAP) $394,016 $373,165 $371,675 $372,145 $383,166 
    Less: Goodwill and Other Intangibles (GAAP)  93,093  93,133  93,173  93,213  93,253 
    Tangible Shareowners' Equity (non-GAAP)A 300,923  280,032  278,502  278,932  289,913 
    Total Assets (GAAP)  4,525,958  4,332,671  4,354,297  4,310,045  4,263,849 
    Less: Goodwill and Other Intangibles (GAAP)  93,093  93,133  93,173  93,213  93,253 
    Tangible Assets (non-GAAP)B$4,432,865 $4,239,538 $4,261,124 $4,216,832 $4,170,596 
    Tangible Common Equity Ratio (non-GAAP)A/B 6.79% 6.61% 6.54% 6.61% 6.95%
    Actual Diluted Shares Outstanding (GAAP)C 17,039,401  16,998,177  16,981,614  16,962,362  16,935,389 
    Tangible Book Value per Diluted Share (non-GAAP)A/C$17.66 $16.47 $16.40 $16.44 $17.12 


    CAPITAL CITY BANK GROUP, INC.           
    EARNINGS HIGHLIGHTS           
    Unaudited           
                
      Three Months Ended Twelve Months Ended 
    (Dollars in thousands, except per share data) Dec 31, 2022 Sep 30, 2022 Dec 31, 2021 Dec 31, 2022 Dec 31, 2021 
    EARNINGS           
    Net Income Attributable to Common Shareowners$11,664$11,315$6,372$40,147$33,396  
    Diluted Net Income Per Share$0.68$0.67$0.38$2.36$1.98  
    PERFORMANCE           
    Return on Average Assets 1.06%1.03%0.61%0.93%0.84 %
    Return on Average Equity 12.16 11.83 7.22 10.58 9.92  
    Net Interest Margin 3.76 3.31 2.60 3.13 2.83  
    Noninterest Income as % of Operating Revenue 35.50 40.76 49.96 43.19 51.11  
    Efficiency Ratio 71.47%70.66%81.29%73.76%77.11 %
    CAPITAL ADEQUACY           
    Tier 1 Capital 14.53%14.80%16.14%14.53%16.14 %
    Total Capital 15.52 15.75 17.15 15.52 17.15  
    Leverage 9.06 8.91 8.95 9.06 8.95  
    Common Equity Tier 1 12.64 12.83 13.86 12.64 13.86  
    Tangible Common Equity (1) 6.79 6.61 6.95 6.79 6.95  
    Equity to Assets 8.71%8.61%8.99%8.71%8.99 %
    ASSET QUALITY           
    Allowance as % of Non-Performing Loans 1,076.89%934.53%499.93%1,076.89%499.93 %
    Allowance as a % of Loans HFI 0.98 0.96 1.12 0.98 1.12  
    Net Charge-Offs as % of Average Loans HFI 0.21 0.12 0.02 0.18 (0.03) 
    Nonperforming Assets as % of Loans HFI and OREO 0.11 0.10 0.22 0.11 0.22  
    Nonperforming Assets as % of Total Assets 0.06%0.06%0.10%0.06%0.10 %
    STOCK PERFORMANCE           
    High$36.23$33.93$29.00$36.23$29.00  
    Low 31.14 27.41 24.77 24.43 21.42  
    Close$32.50$31.11$26.40$32.50$26.40  
    Average Daily Trading Volume 31,894 30,546 29,900 27,987 29,919  
                
    (1) Tangible common equity ratio is a non-GAAP financial measure. For additional information, including a reconciliation to GAAP, refer to Page 5.    
                


    CAPITAL CITY BANK GROUP, INC.          
    CONSOLIDATED STATEMENT OF FINANCIAL CONDITION      
    Unaudited          
               
     2022  2021 
    (Dollars in thousands)Fourth Quarter Third Quarter Second Quarter First Quarter Fourth Quarter
    ASSETS          
    Cash and Due From Banks$72,114 $72,686 $91,209 $77,963 $65,313 
    Funds Sold and Interest Bearing Deposits 528,536  497,679  603,315  790,465  970,041 
    Total Cash and Cash Equivalents 600,650  570,365  694,524  868,428  1,035,354 
               
    Investment Securities Available for Sale 413,294  416,745  601,405  624,361  654,611 
    Investment Securities Held to Maturity 660,744  676,178  528,258  518,678  339,601 
    Other Equity Securities 10  1,349  900  855  861 
    Total Investment Securities 1,074,048  1,094,272  1,130,563  1,143,894  995,073 
               
    Loans Held for Sale 54,635  50,304  48,708  50,815  52,532 
               
    Loans Held for Investment ("HFI"):          
    Commercial, Financial, & Agricultural 247,362  246,304  247,902  230,213  223,086 
    Real Estate - Construction 234,519  237,718  225,664  174,293  174,394 
    Real Estate - Commercial 782,557  715,870  699,093  669,110  663,550 
    Real Estate - Residential 721,759  573,963  478,121  368,020  346,756 
    Real Estate - Home Equity 208,120  202,512  194,658  188,174  187,821 
    Consumer 324,450  347,949  359,906  347,785  321,511 
    Other Loans 5,346  20,822  6,854  6,692  13,265 
    Overdrafts 1,067  1,047  1,455  1,222  1,082 
    Total Loans Held for Investment 2,525,180  2,346,185  2,213,653  1,985,509  1,931,465 
    Allowance for Credit Losses (24,736) (22,510) (21,281) (20,756) (21,606)
    Loans Held for Investment, Net 2,500,444  2,323,675  2,192,372  1,964,753  1,909,859 
               
    Premises and Equipment, Net 82,138  81,736  82,932  82,518  83,412 
    Goodwill and Other Intangibles 93,093  93,133  93,173  93,213  93,253 
    Other Real Estate Owned 431  13  90  17  17 
    Other Assets 120,519  119,173  111,935  106,407  94,349 
    Total Other Assets 296,181  294,055  288,130  282,155  271,031 
    Total Assets$4,525,958 $4,332,671 $4,354,297 $4,310,045 $4,263,849 
    LIABILITIES          
    Deposits:          
    Noninterest Bearing Deposits$1,653,620 $1,737,046 $1,724,671 $1,704,329 $1,668,912 
    NOW Accounts 1,290,494  990,021  1,036,757  1,062,498  1,070,154 
    Money Market Accounts 267,383  292,932  289,337  288,877  274,611 
    Savings Accounts 637,374  646,526  639,594  614,599  599,811 
    Certificates of Deposit 90,446  92,853  95,899  95,204  99,374 
    Total Deposits 3,939,317  3,759,378  3,786,258  3,765,507  3,712,862 
               
    Short-Term Borrowings 56,793  52,271  39,463  30,865  34,557 
    Subordinated Notes Payable 52,887  52,887  52,887  52,887  52,887 
    Other Long-Term Borrowings 513  562  612  806  884 
    Other Liabilities 73,675  84,657  93,319  77,323  67,735 
    Total Liabilities 4,123,185  3,949,755  3,972,539  3,927,388  3,868,925 
               
    Temporary Equity 8,757  9,751  10,083  10,512  11,758 
    SHAREOWNERS' EQUITY          
    Common Stock 170  170  170  169  169 
    Additional Paid-In Capital 37,331  36,234  35,738  35,188  34,423 
    Retained Earnings 393,744  384,964  376,532  370,531  364,788 
    Accumulated Other Comprehensive Loss, Net of Tax (37,229) (48,203) (40,765) (33,743) (16,214)
    Total Shareowners' Equity 394,016  373,165  371,675  372,145  383,166 
    Total Liabilities, Temporary Equity and Shareowners' Equity$4,525,958 $4,332,671 $4,354,297 $4,310,045 $4,263,849 
    OTHER BALANCE SHEET DATA          
    Earning Assets$4,182,399 $3,988,440 $3,996,238 $3,970,684 $3,949,111 
    Interest Bearing Liabilities 2,395,890  2,128,052  2,154,549  2,145,736  2,132,278 
    Book Value Per Diluted Share$23.12 $21.95 $21.89 $21.94 $22.63 
    Tangible Book Value Per Diluted Share(1) 17.66  16.47  16.40  16.44  17.12 
    Actual Basic Shares Outstanding 16,987  16,962  16,959  16,948  16,892 
    Actual Diluted Shares Outstanding 17,039  16,998  16,982  16,962  16,935 
    (1) Tangible book value per diluted share is a non-GAAP financial measure. For additional information, including a reconciliation to GAAP, refer to Page 5.


                   
    CAPITAL CITY BANK GROUP, INC.              
    CONSOLIDATED STATEMENT OF OPERATIONS           
    Unaudited              
                   
      2022  2021  December 31,
    (Dollars in thousands, except per share data) Fourth Quarter Third Quarter Second Quarter First Quarter Fourth Quarter 2022 2021 
    INTEREST INCOME              
    Loans, including Fees$31,916$27,761$24,072 $22,133 $22,744 $105,882$96,561 
    Investment Securities 4,847 4,372 3,840  2,896  2,505  15,955 8,792 
    Federal Funds Sold and Interest Bearing Deposits 4,463 3,231 1,408  409  300  9,511 998 
    Total Interest Income 41,226 35,364 29,320  25,438  25,549  131,348 106,351 
    INTEREST EXPENSE              
    Deposits 1,902 1,052 266  224  213  3,444 839 
    Short-Term Borrowings 690 536 343  192  307  1,761 1,360 
    Subordinated Notes Payable 522 443 370  317  306  1,652 1,228 
    Other Long-Term Borrowings 8 6 8  9  12  31 63 
    Total Interest Expense 3,122 2,037 987  742  838  6,888 3,490 
    Net Interest Income 38,104 33,327 28,333  24,696  24,711  124,460 102,861 
    Provision for Credit Losses 3,521 2,099 1,542  -  -  7,162 (1,553)
    Net Interest Income after Provision for Credit Losses 34,583 31,228 26,791  24,696  24,711  117,298 104,414 
    NONINTEREST INCOME              
    Deposit Fees 5,536 5,947 5,447  5,191  5,300  22,121 18,882 
    Bank Card Fees 3,744 3,860 4,034  3,763  3,872  15,401 15,274 
    Wealth Management Fees 3,649 3,937 4,403  6,070  3,706  18,059 13,693 
    Mortgage Banking Revenues 5,497 7,116 9,065  8,946  9,800  30,624 52,425 
    Other 2,546 2,074 1,954  1,848  1,994  8,422 7,271 
    Total Noninterest Income 20,972 22,934 24,903  25,818  24,672  94,627 107,545 
    NONINTEREST EXPENSE              
    Compensation 25,565 24,738 25,383  24,856  24,783  100,542 101,470 
    Occupancy, Net 6,253 6,153 6,075  6,093  5,960  24,574 23,932 
    Other 10,469 8,919 9,040  8,284  9,464  36,712 37,106 
    Total Noninterest Expense 42,287 39,810 40,498  39,233  40,207  161,828 162,508 
    OPERATING PROFIT 13,268 14,352 11,196  11,281  9,176  50,097 49,451 
    Income Tax Expense 2,599 3,074 2,177  2,235  2,040  10,085 9,835 
    Net Income 10,669 11,278 9,019  9,046  7,136  40,012 39,616 
    Pre-Tax Loss (Income) Attributable to Noncontrolling Interest 995 37 (306) (591) (764) 135 (6,220)
    NET INCOME ATTRIBUTABLE TO
    COMMON SHAREOWNERS    		$11,664$11,315$8,713 $8,455 $6,372 $40,147$33,396 
    PER COMMON SHARE              
    Basic Net Income$0.69$0.67$0.51 $0.50 $0.38 $2.37$1.98 
    Diluted Net Income 0.68 0.67 0.51  0.50  0.38  2.36 1.98 
    Cash Dividend$0.17$0.17$0.16 $0.16 $0.16 $0.66$0.62 
    AVERAGE SHARES              
    Basic 16,963 16,960 16,949  16,931  16,880  16,951 16,863 
    Diluted 17,016 16,996 16,971  16,946  16,923  16,985 16,893 


    CAPITAL CITY BANK GROUP, INC.              
    ALLOWANCE FOR CREDIT LOSSES ("ACL")            
    AND CREDIT QUALITY              
    Unaudited              
                   
      2022  2021  December 31,
    (Dollars in thousands, except per share data) Fourth Quarter Third Quarter Second Quarter First Quarter Fourth Quarter 2022  2021 
    ACL - HELD FOR INVESTMENT LOANS              
    Balance at Beginning of Period$22,510 $21,281 $20,756 $21,606 $21,500 $21,606 $23,816 
    Provision for Credit Losses 3,543  1,931  1,670  (79)  200  7,065  (2,842) 
    Net Charge-Offs (Recoveries) 1,317  702  1,145  771  94  3,935  (632) 
    Balance at End of Period$24,736 $22,510 $21,281 $20,756 $21,606 $24,736 $21,606 
    As a % of Loans HFI 0.98%  0.96%  0.96%  1.05%  1.12%  0.98%  1.12% 
    As a % of Nonperforming Loans 1,076.89%  934.53%  677.57%  760.83%  499.93%  1,076.89%  499.93% 
    ACL - UNFUNDED COMMITMENTS              
    Balance at Beginning of Period 3,012 $2,853 $2,976 $2,897 $3,117 $2,897 $1,644 
    Provision for Credit Losses (23)  159  (123)  79  (220)  92  1,253 
    Balance at End of Period(1) 2,989  3,012  2,853  2,976  2,897  2,989  2,897 
    ACL - DEBT SECURITIES              
    Provision for Credit Losses$1 $9 $(5) $- $20 $5 $36 
    CHARGE-OFFS              
    Commercial, Financial and Agricultural$129 $2 $1,104 $73 $101 $1,308 $239 
    Real Estate - Construction -  -  -  -  -  -  - 
    Real Estate - Commercial 88  1  -  266  -  355  405 
    Real Estate - Residential -  -  -  -  20  -  108 
    Real Estate - Home Equity 160  -  -  33  9  193  103 
    Consumer 976  770  533  622  254  2,901  1,269 
    Overdrafts 720  989  660  780  678  3,149  2,703 
    Total Charge-Offs$2,073 $1,762 $2,297 $1,774 $1,062 $7,906 $4,827 
    RECOVERIES              
    Commercial, Financial and Agricultural$25 $58 $59 $165 $148 $307 $453 
    Real Estate - Construction -  2  -  8  -  10  10 
    Real Estate - Commercial 13  8  56  29  25  106  865 
    Real Estate - Residential 98  44  115  27  33  284  753 
    Real Estate - Home Equity 36  22  67  58  173  183  413 
    Consumer 175  260  453  183  214  1,071  1,191 
    Overdrafts 409  666  402  533  375  2,010  1,774 
    Total Recoveries$756 $1,060 $1,152 $1,003 $968 $3,971 $5,459 
    NET CHARGE-OFFS (RECOVERIES)$1,317 $702 $1,145 $771 $94 $3,935 $(632) 
    Net Charge-Offs as a % of Average Loans HFI(2) 0.21%  0.12%  0.22%  0.16%  0.02%  0.18%  (0.03)% 
    CREDIT QUALITY              
    Nonaccruing Loans$2,297 $2,409 $3,141 $2,728 $4,322     
    Other Real Estate Owned 431  13  90  17  17     
    Total Nonperforming Assets ("NPAs")$2,728 $2,422 $3,231 $2,745 $4,339     
                   
    Past Due Loans 30-89 Days$7,829 $6,263 $3,554 $3,120 $3,600     
    Past Due Loans 90 Days or More -  -  -  -  -     
    Classified Loans 19,342  20,988  19,620  22,348  17,912     
    Performing Troubled Debt Restructurings$5,913 $6,261 $6,728 $7,304 $7,643     
                   
    Nonperforming Loans as a % of Loans HFI 0.09%  0.10%  0.14%  0.14%  0.22%     
    NPAs as a % of Loans HFI and Other Real Estate 0.11%  0.10%  0.15%  0.14%  0.22%     
    NPAs as a % of Total Assets 0.06%  0.06%  0.07%  0.06%  0.10%     
                   
    (1) Recorded in other liabilities              
    (2) Annualized              


    CAPITAL CITY BANK GROUP, INC.                                            
    AVERAGE BALANCE AND INTEREST RATES                                            
    Unaudited                                                  
                                                       
      Fourth Quarter 2022  Third Quarter 2022  Second Quarter 2022  First Quarter 2022  Fourth Quarter 2021   Dec 2022 YTD  Dec 2021 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$42,910 $581 5.38%$55,164 $486 4.82%$52,860 $711 4.44%$43,004  397 3.19%$62,809 $522 3.29% $48,502 $2,175 4.49%$78,328 $2,555 3.24%
    Loans Held for Investment(1) 2,439,379  31,418 5.11  2,264,075  27,354 4.76  2,084,679  23,433 4.53  1,963,578  21,811 4.52  1,948,324  22,296 4.54   2,189,440  104,016 4.75  2,000,563  94,332 4.76 
                                                       
    Investment Securities                                                  
    Taxable Investment Securities 1,078,265  4,835 1.78  1,117,789  4,359 1.55  1,142,269  3,834 1.34  1,056,736  2,889 1.10  987,700  2,493 1.00   1,098,876  15,917 1.45  778,953  8,724 1.12 
    Tax-Exempt Investment Securities(1) 2,827  17 2.36  2,939  17 2.30  2,488  10 1.73  2,409  10 1.60  3,380  17 2.07   2,668  54 2.03  3,772  91 2.39 
                                                       
    Total Investment Securities 1,081,092  4,852 1.78  1,120,728  4,376 1.55  1,144,757  3,844 1.34  1,059,145  2,899 1.10  991,080  2,510 1.01   1,101,544  15,971 1.45  782,725  8,815 1.12 
                                                       
    Federal Funds Sold and Interest Bearing Deposits 469,352  4,463 3.77  569,984  3,231 2.25  691,925  1,408 0.82  873,097  409 0.19  789,100  300 0.15   649,762  9,511 1.46  790,870  998 0.13 
                                                       
    Total Earning Assets 4,032,733 $41,314 4.07% 4,009,951 $35,447 3.51% 3,974,221 $29,396 2.97% 3,938,824 $25,516 2.63% 3,791,313 $25,628 2.68%  3,989,248 $131,673 3.30% 3,652,486 $106,700 2.92%
                                                       
    Cash and Due From Banks 74,178       79,527       79,730       74,253       73,752        76,929       72,409      
    Allowance for Credit Losses (22,596)      (21,509)      (20,984)      (21,655)      (22,127)       (21,688)      (22,960)     
    Other Assets 297,510       289,709       288,421       275,353       284,999        287,813       282,129      
                                                       
    Total Assets$4,381,825      $4,357,678      $4,321,388      $4,266,775      $4,127,937       $4,332,302      $3,984,064      
                                                       
    LIABILITIES:                                                  
    Interest Bearing Deposits                                                  
    NOW Accounts$1,133,733 $1,725 0.60%$1,016,475 $868 0.34%$1,033,190 $120 0.05%$1,079,906 $86 0.03%$963,778 $72 0.03% $1,065,838 $2,799 0.26%$965,320 $294 0.03%
    Money Market Accounts 273,328  63 0.09  288,758  71 0.10  286,210  36 0.05  285,406  33 0.05  289,335  34 0.05   283,407  203 0.07  278,606  134 0.05 
    Savings Accounts 641,153  80 0.05  643,640  80 0.05  628,472  77 0.05  599,359  72 0.05  573,563  71 0.05   628,313  309 0.05  537,023  263 0.05 
    Time Deposits 92,385  34 0.15  94,073  33 0.14  95,132  33 0.14  97,054  33 0.14  101,037  36 0.14   94,646  133 0.14  102,220  148 0.14 
    Total Interest Bearing Deposits 2,140,599  1,902 0.35% 2,042,946  1,052 0.20% 2,043,004  266 0.05% 2,061,725  224 0.04% 1,927,713  213 0.04%  2,072,204  3,444 0.17% 1,883,169  839 0.04%
                                                       
    Short-Term Borrowings 50,844  690 5.38% 46,679  536 4.56% 31,782  343 4.33% 32,353  192 2.40% 46,355  307 2.63%  40,483  1,761 4.35% 53,511  1,360 2.54%
    Subordinated Notes Payable 52,887  522 3.86  52,887  443 3.28  52,887  370 2.76  52,887  317 2.40  52,887  306 2.26   52,887  1,652 3.08  52,887  1,228 2.29 
    Other Long-Term Borrowings 530  8 4.80  580  6 4.74  722  8 4.54  833  9 4.49  1,414  12 3.50   665  31 4.62  1,887  63 3.33 
                                                       
    Total Interest Bearing Liabilities 2,244,860 $3,122 0.55% 2,143,092 $2,037 0.38% 2,128,395 $987 0.19% 2,147,798 $742 0.14% 2,028,369 $838 0.16%  2,166,239 $6,888 0.32% 1,991,454 $3,490 0.18%
                                                       
    Noninterest Bearing Deposits 1,662,443       1,726,918       1,722,325       1,652,337       1,621,432        1,691,132       1,523,717      
    Other Liabilities 84,585       98,501       87,207       72,166       114,657        85,684       111,567      
                                                       
    Total Liabilities 3,991,888       3,968,511       3,937,927       3,872,301       3,764,458        3,943,055       3,626,738      
    Temporary Equity 9,367       9,862       10,096       10,518       13,339        9,957       20,505      
                                                       
    SHAREOWNERS' EQUITY: 380,570       379,305       373,365       383,956       350,140        379,290       336,821      
                                                       
    Total Liabilities, Temporary Equity and Shareowners' Equity$4,381,825      $4,357,678      $4,321,388      $4,266,775      $4,127,937       $4,332,302      $3,984,064      
                                                       
    Interest Rate Spread  $38,192 3.52%  $33,410 3.13%  $28,409 2.78%  $24,774 2.49%  $24,790 2.52%   $124,785 2.98%  $103,210 2.75%
                                                       
    Interest Income and Rate Earned(1)   41,314 4.07    35,447 3.51    29,396 2.97    25,516 2.63    25,628 2.68     131,673 3.30    106,700 2.92 
    Interest Expense and Rate Paid(2)   3,122 0.31    2,037 0.20    987 0.10    742 0.08    838 0.09     6,888 0.17    3,490 0.10 
                                                       
    Net Interest Margin  $38,192 3.76%  $33,410 3.31%  $28,409 2.87%  $24,774 2.55%  $24,790 2.60%   $124,785 3.13%  $103,210 2.83%
                                                       
    (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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